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effect of fluctuations of prices on company

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A J Sankar (Querist)
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21 October 2008 What is the effect of changes in prices (i mean sensex changes) on the respective company.
Is it effect position of the company in terms of ficance and other positions like credit ranting of the company etc,.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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21 October 2008 The sensex changes are not necessarily reflective of company's performance alone. As a matter of fact it is the sentiment of investors in the secondary market which may have a stronger influence. Therefore there is no direct consequences. But if a company is say in the midst of issue of securities there could be problems of subscriptions at satis factory levels. Example the recent right's issue of TATA Motors.

A J Sankar

A J Sankar (Querist)
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21 October 2008 Thank you sir for your reply.

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