If you’ve ever opened a trading app, you’ve seen stock prices jumping up and down every second. One moment Bajaj Auto is at ₹4,900… the next moment it touches ₹4,920… then falls to ₹4,880.

Why does this happen?
Who decides these prices?

Let’s understand this with a simple explanation.

1. Stock Market Works on One Principle: Demand & Supply

Just like any marketplace—vegetable market, electronics market or even online shopping—prices change based on how many buyers and sellers there are.

If more people want to BUY a stock → price goes UP

If more people want to SELL a stock → price goes DOWN

This is the real engine behind every price movement.

2. Real-Time Trading Creates Real-Time Price Changes

Stock prices update instantly because buyers and sellers place trades continuously—every second.

Example:
You open your app and search for Bajaj Auto.

Suddenly you see:

• Price moves up on positive news
• Price falls on negative news
• Price fluctuates when different investors place different types of orders

This constant flow of orders makes the chart jump in real time.

3. News Impacts Stock Prices Immediately

News acts like petrol on fire in the market.

✔ Positive News → Price Jumps

For example:

• Strong quarterly results
• High sales numbers
• New product launch
• Expansion announcements

If Bajaj Auto reports strong sales, investors rush to buy.
Demand increases → price moves up.

✔ Negative News → Price Falls

For example:

• Weak earnings
• Industry slowdown
• Government policy impact

If news websites report weakening performance, sellers increase → price drops.

4. Why Do People Value a Stock Differently?

Every investor has their own thinking:

• Some buy because of long-term growth
• Some sell because they fear losses
• Traders buy because of charts
• Investors buy because of fundamentals
• Some exit due to global market pressure

This mix of psychology & strategy creates hundreds of buy/sell decisions every second, causing constant price updates.

5. Example: Bajaj Auto Price Movement

Imagine Bajaj Auto trades between ₹4,900–₹5,000.

1. Positive report:
   “Exports up 20%” → more buying
   Price moves towards ₹5,000+
2. Negative report:
   “Demand slowing down” → more selling
   Price slips towards ₹4,850–₹4,900

This change is not fixed—it is shaped by what lakhs of investors do every minute.

6. App Shows Prices LIVE Because of the Exchange

Your trading platform receives live prices directly from:

– NSE (National Stock Exchange)– BSE (Bombay Stock Exchange)

Every micro-second, the app updates the last traded price (LTP) based on completed transactions.

Final Takeaways

Here’s what you should remember:

• Stock prices change mainly due to demand & supply
• News greatly influences investor behaviour
• Every investor values a stock differently
• Trading apps show prices live from NSE/BSE
• Price movement is natural and continuous

Understanding this helps you make smarter decisions instead of panicking during fluctuations.