The impact of economic indicators on stock prices

Impact on share prices: Lower interest rates lower the cost of borrowing, encouraging both consumer spending and business investment. This can lead to higher corporate earnings and, in turn, higher stock prices. Conversely, higher interest rates can increase borrowing costs, slow economic growth and lead to lower stock prices. In capital-intensive industries such as energy, where companies often rely on debt for expansion, interest rate changes can have a direct impact on their share prices, including adani power’s share price.