How is share value fluctuate in share market???? what r the reasons ????

Many of you spoke about various changes in macro and micro economic conditions affect the stock prices. But according to me these all affects only when you are looking into short term gains or short term investments. In long term the stock price mainly fluctuates due to company's future earnings and its future outlook i.e. company's future cash flows from its operation and other sources and company's new investment strategies. 

The company cash flows gives you an idea about its profitability. The future outlook is more important than the past data. When I say future outlook it also includes the company's future business expansion. It is not worth investing into a company which doesn't consider the new opportunities for its growth. When company's growth and its profitability are strong then no matter what, the stock price appreciates (in long term the demand increases). If the case is other way round then no matter how big in size the company is, its stock price depreciates (the demand decreases).  

Like all said in short term micro and macro-economic conditions, interest rates, inflation, oil prices, taxes and natural calamities etc could affect the stock prices.

Fundamentally, the immediate trigger is market expectations. The demand and supply of a particular scrip decide the price.

The demand and supply factors are largely determined by the players anticipations of a stock.

These anticipations can be impacted by

a. Global factors. Such as money supply into the economy as a whole, large catastrophes elsewhere in the globe etc

b.Internal macro factors such as policy decisions of the Govt, general boom or bust in the economy, annual rainfall, terrorism, law and order situation, market expectation of "how the market will behave". It can also include who is forming the new government and what is expected to be his policy, Taxation Regime changes.

C. Micro factors pertaining to the industry concerned,  state concerned and company concerned.

Now the one operative word to be noted is "expectations". Market always jumps the gun. Do not wait for the thing to happen. That is why, sometimes, rumours ruck up huge movements in share prices.

And the market is deep, too many players are there, their collective action determines the prices and no single individual can predict or influence the price movements.

what is the differents between spin-off, stock spilt

Volatility of a market depends upon many more things. i think the main cause for the fluctuation of market is Alternatives available in the market for INVESTMENT. It can be domestic level as well as world wide level. Or the trend of investment too.

Veerababu Good question but too big topic. There are many factors which influence the prices of shares in market.

Macro factors:-  Broad concept include the factors International, political, company, environmental.

Micro factors:- Factors directly related to product, Industry, results, Equilibrium of stocks etc.

Retail investors invest their money without make any forecasting based on macro and micro factors. Although many of them are good professional & they are using forecasting in their work to make plans for their companies. But they are not doing the same thing while investing in shares. 

Mr. Srinivas You are right that a small news can be factor for more volatility in shares. But i have one question for you, you are working at reputed post related to Police/state Govt., If there will any casualty (riots, natural calamities or informal visit of Indian/Abroad president/ PM) happens then what will be the action of state govt.?? They will act fast to fight against the problem & provide proper solution as soon as possible. SAME APPLICABLE ON ALL PROFESSIONALS. Because we make all corporate plans after macro & micro forecasting but uncertainty is always there.

There are many number of reasons.the most important things are 

1.the volumes that the share is trading in the market i e the buying and selling volumes

2.due to external news by the governmnt or by the company

3.depending upon the global markets

speculation by the likes harshad mehta ketan parekh etc.