Last Updated: 29th Dec, 2025
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The latest price at which a stock is trading on the stock market is known as the current market price (CMP) of the stock. The current price is subject to variation according to the live market activity of buyers/sellers. Knowing the CMP enables investors to enter and exit a particular transaction at the right price. This article explains – what is current market price (CMP) in stock market, why it is important and how you can monitor it in real time.
Understanding the Meaning of the Current Market Price
The current market price means the latest price at which a stock or any financial instrument is being traded in the live market. The supply and demand of the market, news, macroeconomic events and market sentiments influence the CMP. During the live market, the CMP offers an estimate of the security’s valuation as determined by the ongoing trades.
How is CMP Determined?
The current market price is based on the number of buyers and sellers currently transacting in the market. Let us understand how it is determined in detail.
Buy and Sell Orders:
When the orders placed by buyers and sellers are matched, the CMP changes.
Sentiment of the Market:
If there is positive or negative news, it influences trading behaviour. This further affects the demand and supply, resulting in a change in CMP.
Trading Volume:
If the trading volume is high, it can result in rapidly changing price movements.
Global or Local Developments:
Price can also change due to macroeconomic indicators and geopolitical developments.
Corporate Announcements:
If a company releases earnings reports, dividends, or announces mergers, it can lead to a volatile CMP.
After understanding how CMP is determined, let’s look at an example.
Example of Current Market Price
Here’s a current market price example.
Assume that we are trading a stock listed on the National Stock Exchange at 11:15 AM. At 11:15 the XYZ is selling at a price of Rs 123.45. This makes the CMP of the stock to be Rs 123.45. But at 11:25 AM. Now, if the stock value has gone up and is trading at 126.78 instead of Rs 113. This will now be the new CMP.
What is the Importance of CMP?
CMP is used for decision-making by various types of market participants. Retail investors and traders determine the entry and exit points while also using it for an intraday price action strategy. Analysts and institutions use CMP during bulk trades in the market. It is also used as a base price while calculating price-to-earnings (P/E), market capitalisation, and other metrics of a stock.
How to Track CMP in Real Time?
While you are trading and investing, you can track the CMP in stock market of the security in various ways.
Brokerage Platforms:
Check the trading terminal of your broker for the latest CMP.
Stock Exchange Websites:
You can refer to the live market data available on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
Financial News Channels or Apps:
Various news channels that cover financial news post live prices on their channels or their apps.
Make sure that prices on the platform you refer to are not delayed.
How is CMP also Impacted by Actions?
Corporate actions are decisions taken by a company’s management or board of directors that can influence its capital structure and directly impact shareholders. These actions help companies respond to changing market conditions, such as raising funds through a rights issue or expanding through mergers and acquisitions and offer benefits to investors. Events like dividends, stock splits, bonus issues, and share buybacks can affect the value of an investor’s holdings or create new opportunities for portfolio growth. Corporate actions also promote transparency by ensuring shareholders receive timely updates and information about important changes within the company.
CMP vs Intrinsic Value
Here’s how the Current Market Price (CMP) and Intrinsic Value differ based on various parameters:
Aspect | Current Market Price (CMP) | Intrinsic Value |
Meaning | The live trading price of a stock on the exchange | The fair value of a stock based on its financial health and prospects |
How It's Derived | Driven by ongoing market activity-supply, demand, and sentiment | Calculated using valuation models like DCF, earnings analysis, and risk assessment |
Key Drivers | Influenced by investor behaviour, news flow, liquidity, and macroeconomic trends | Determined by business fundamentals, projected earnings, and long-term viability |
Behaviour Over Time | Fluctuates constantly during market hours | Remains relatively stable unless there's a major change in company outlook |
Investor Utility | Useful for timing trades and gauging short-term market conditions | Helps evaluate whether a stock is priced above or below its true worth |
Sensitivity to Events | Reacts sharply to short-term developments and external triggers | Adjusts slowly, typically in response to significant shifts in fundamentals |
How Does CMP Differ from LTP (Last Traded Price)?
Here’s how Current Market Price (CMP) Last Traded Price (LTP).
Aspect | Current Market Price (CMP) | Last Traded Price (LTP) |
Definition | The latest price at which a stock is available for trading in the market. | The price at which the most recent transaction in the stock was executed. |
Update Dynamics | Continuously adjusts in real time based on prevailing bid and ask quotes. | Remains static until a new trade occurs. |
Indicative Value | Represents the price at which a buyer or seller may currently transact. | Reflects the actual price of the last completed trade. |
Trading Relevance | Used to gauge current market sentiment and inform buy/sell decisions. | Used for tracking historical execution data and validating trade records. |
Price Metrics Other than CMP
Other than CMP, there are various price metrics. Let us understand the key ones.
Opening Price:
It is the price at which the stock opens on a trading day.
Closing Price:
It is the price at which the stock closes at the end of a trading day.
52-Week High:
It is the highest price of the stock throughout one trading year (52 weeks).
52-Week Low:
It is the lowest price of the stock throughout one trading year.
Conclusion
The current market price represents the last traded value of a stock or any other security at a given time. Various factors such as demand and supply, market news and geopolitical movements influence a stock’s CMP. Using platforms provided by brokers and official exchange websites, traders and investors can check the CMP and make informed investing and trading decisions.
