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Wednesday, June 30, 2010

How Share Market Trading Can Prove Rewarding


The advent of the Internet has changed the very course of share market trading. If you hold a trading account, you can buy and sell shares right from the comfort of your space. You need not visit a stock broker to get updations or to gain any stock market information. All such facilities are available online. Locating expert stock brokers, consulting them for expert tips are all possible online today. It requires only minimal investment to start in share market trading in India whether it is NSE trading or BSE trading.

Choices for investment are many in India; it can be government securities, bonds, derivatives, and other financial instruments. If you are a novice investor, you should first learn the basics before taking a plunge in the share market. Seeking professional guidance is easy at online share market trading platforms. Such platforms assist you to learn and identify with the nuances of trading. In no time you can become skilled at speculating - the how, where, and when - of investing. Getting maximum returns will soon seem an easy affair for you, as you will be able to select the right shares. Most trading platforms offer facilities to open free trading account. Usually, you require paying some amount to open a trading account and with the free option you are exempted of the opening fees. And to start investing in the share market, you should have a trading account. And if you have not yet opened an account, you experience a winning situation, as besides the account, you can avail a number of benefits like getting tips from market experts, getting market updations at your mailbox, getting stock recommendations, and lots more. To open a free trading account, submitting your PAN card number is mandatory as per SEBI rules. It is like a bank account where you will have to deposit enough money for buying shares. A stock broker will handle your transactions; the amount gets automatically transferred once you buy a share and in case of profits the amount gets robotically credited. The payment mode is safe; you can view details of your transaction in a chart.

Two stock exchanges majorly represent the Indian share market, viz. National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). The indian sensex embodies the BSE whereas nifty stands for NSE. The BSE facilitates trading of 30 most active stocks and enlists over 6000 companies; the NSE represents 50 stocks. If you are involved in BSE trading, you should watch the performance of the Indian sensex; the same case applies with NSE trading. No matter where you invest in the share market, what is of substance is your ability to buy shares that prove profitable for you. You will obviously not want to push your hard earned money into the drains and only cautiousness is the buzzword here. So, visit an online share trading platform today; stay updated and get the most out of your investments!

Nirmal Kumar Soni is freelance market analyst and is writing reviews articles on stocks and shares, share market trading, online share trading, online trading, shares trading, free trading account, online share trading platform.

The Stock Market Crisis in India - Worrying People


With the help of Indian stock market updates, one comes to know the fact that the stock prices of various companies have got down. According to the recent updates, the software companies which had shown great promises of growth are now not doing well. The prices of these software companies have reduced, but people need not worry about this, because the IT specialists say that the situation will improve very soon.

According to the Indian stock market updates, the real estate sector is also suffering a lot. It is not attracting the buyers and the prices of real estate companies have got down. Those who are into real estate business believe that the condition has started improving and in times to come, this sector can register a huge growth. Till then, people need to keep patience. Apart from this, the situation of export is not good these days. Earlier, the export sector was generating lots of foreign money and thereby contributing to the growth of Indian economy. Market researchers believe that export will pick up very soon and once again add to the growth of the country.

The NSE & BSE sensex news further shocks people by giving updates regarding the stock prices of companies working in the financial and insurance sector. These companies are quite down. The obvious reason behind this is that the financial products like mutual funds, equity shares, insurance policies are not attracting the buyers these days. This is why, the market share of these companies has come down. According to the opinions of the financial analysts, the financial sector has still a huge potential and it will stabilise in the near future and the share market of India will boom. So, the investors need not to worry about their money, it will multiply very soon.

Quit shockingly, the prices of certain commodities have reduced. Those who read NSE & BSE sensex news must be knowing the downfall in the prices of gold and silver. Those who have invested in these commodities should have a sigh of relief because the prices of gold and silver are picking up these days. All these improvements in the commodity market will enable the investors to mint huge money.

On January 21, 2008, the BSE sensex saw the highest downfall that caused the loss of 1408 point. After that, it recovered and closed at 17,605.40, but it again tumbled to 16,963.96. So, it can be said that in 2008, the sensex has faced lots of jolts. The simple reason of it was the non-performance of various sectors. According to the Times of India, the highest sensex gain in the history Indian stock was on March 24, 1992, during the hey days of Harshad Mehta.

Though, the Indian stock exchange is facing lots of downfalls these days, the investors need not to worry, as different sectors have started picking up.

Success Story of BSE Sensex


The economic slowdown that affected the equities and banks of the world is now receding as the economies are gaining their stability back, however, slowly. The Bombay Stock Exchange, the oldest in the Asian stock exchanges too seems to have recovered from the effect of the economic depression that shook the global economy for over a year now. Comprising of the leading companies from varied sectors, the BSE companies are showing up huge profits on the world economy charts. No wonder, BSE rates as world's fifth in transaction numbers and the BSE index is tracked on a global basis, owing to its vast stature. With a sturdy foundation laid on the grounds of a 'free-float' methodology, the BSE Sensitive Index is formed of 30 stocks which represent 12 major sectors of economy and goods. Market sentiments and realities directly show up on the gains and losses that the BSE Sensitive index comes across. The number of BSE companies is rising on a regular basis as the biggest names of every industry want to be linked with its glory.

The BSE index comprises of 21 more indices besides the BSE Sensex, inclusive of 12 other sectoral indices. The BSE sensitive index prepares a firm ground and platform for transparent trading in equity, debt instruments and derivatives and BSE stock prices are reflective of the profits which are made through the same. After all, these sectors involve the participation of more than 4,700 listed companies. BSE has over the years gained a vase presence and a nation-wide fame as it engulfs under its domain more than 359 cities and towns of India. The BSE authorities revive and modify BSE on regular intervals to ensure that the BSE companies get better representation on the international front. As a result of this, the values of all Indices in BSE sensex are updated as per the real time during the market hours. It was on January 21, 2008, that the BSE SENSEX came across its highest ever fall as the other global markets were slapped by the recession however, after a year BSE is rising back towards gaining the normalcy.

Sourav Sharma is freelance market analyst and is writing reviews articles on BSE sensex, BSE

Sensex and India Stock Market - Interdependent Terms


India has surfaced since the last several years as one of the fastest growing economies in the world. This is the reason why the Indian capital market, i.e. the stock market attracts investors big and small and from within and outside the country. It is the sensex that is termed interdependently with India stock market. Also called BSE sensex, as it represents the Bombay Stock Exchange (BSE), it is considered significant to India's burgeoning economy given its role in raising funds beyond expectations for the Indian capital market.

As the oldest stock exchange in Asia and ranking amongst the top in the world in terms of listed companies, revenue generated, transaction numbers, and other aspects, the BSE, originally 'The Native Share & Stock Brokers' Association' is the investment destination for lakhs of investors. No wonder its presence since the year 1875 has seen it grow by leaps and bounds, now prominent with a list of 6000+ companies. Its permanent recognition by the Indian Government under Securities Contracts (Regulation) Act 1956 well substantiates its significance. It was during the recession in the year 2008-09 that the sensex index figures that rose to the 21,000 plus mark suddenly started exhibiting a downtrend. Situations turned worse when the figure went down more than half its greatest rise. But at the pace that it descended, it started recovering at a greater pace post recession. In no time the sensex index reached the 17000 plus figure. There is lot of potential in the future too.

The threshold where the Indian corporate sector is standing is all due to the funds contributed by investors via the BSE. And the journey of a smooth access to resources still continues. Investment options are many ranging from equity, derivatives, and debt instruments. The market fluctuates as per in-country and international market moves, and the BSE sensex performs only according to market conditions. So, the shares you buy and sell depend on these very market conditions.

You can catch a glimpse of sensex India in all news channels including news portals, stock exchanges' corporate sites, and at trading platforms. If you are fluent in Hindi or Gujrati, you can browse through BSE's corporate site in the said languages. Sensex India figures can also be viewed at BOLT (On-line Trading System), its unique online trading platform, facilitating traders to trade from any corner of the world.

Sourav Sharma is freelance market analyst and is writing reviews articles on Sensex India, Sensex Index, BSE Sensex, and Most Active Shares.


The Sensex Index and Stock Investing


Achieving success in the Indian stock market is everyone's cup of tea provided effective trading strategies are implemented. The Sensex index is the base of the Indian stock market. Bombay Stock Exchange (BSE) is the not only the country's but also Asia's oldest stock exchange. The growth of the Indian capital market can be attributed to the funds raised by the stock exchange from the general public. Sensex is the display tool indicating the performance of companies listed in the BSE. This is the reason why sensex India and Indian stock market are considered as interdependent terms. There are near to 6000 companies listed in the BSE - one of the highest in any stock exchange across the world. Investors watch the sensex index to take trading decisions.

If you know well about the positive as well as negative momentum of a particular stock, you can take wise and profitable investment decisions. Once you follow a well-organized set of rules and know the tactics, your investment in the BSE stock market will no doubt bear fruits and you will always experience a win-win situation. It also depends on how you look at the stock market; if you consider it complicated, it will seem complicated and if you consider it easy and lucrative, you will feel the same too. Picking stocks that can make a big difference in your life is possible by managing your risks. To minimize risks, focus on picking stocks after proper research. Watch the figures exhibited by the sensex index. Visit a news portal or an online trading platform and accouter yourself with the A-Z of information related to the share market including news on sensex India. Once you conduct the research and once you are satisfied with all the information, you can buy the right stocks that can generate excellent gains whether it is short term or long term or day trading.

The online trading phenomenon has attracted investors like never before. You can invest in BSE stocks safely. The performance and functions of the BSE including other stock exchanges in India are regulated by the SEBI, a Govt. of India body. At one time, for a period of over six months, the sensex index figures went down from its 21,000 mark. But in no time the index figures started picking up, now in the 17,000 mark. Invest wisely in BSE stocks and gain a competitive edge!

Sourav Sharma is freelance market analyst and is writing reviews articles on Sensex India, BSE Sensex and Sensex Index.

SENSEX -A High Flying Factor Of India


The BSE SENSEX is the benchmark index of the Indian capital market with longest social memory. It is widely used to describe the mood in the Indian Stock markets. It is the oldest index in India and has acquired a unique place in the collective consciousness of investors. It provides time series data over a fairly long period of time. The BSE SENSEX has wide acceptance among individual investors, institutional investors, foreign investors and fund managers. The inclusion of Blue chip companies and balanced industry representation in the SENSEX makes it the ideal benchmark for fund managers to compare the performance of their funds. After knowing about the fact that SENSEX have an eminent value in the Indian Capital Markets, the utmost requirement is to know SENSEX in depth. Least people know, what is SENSEX? How is it calculated? How is it changes? Who does maintain this? What are its objectives?

What is SENSEX?

The SENSEX is supposed to be an indicator of the stocks in the BSE. It is supposed to show whether the stocks are generally going up, or generally going down.

The SENSEX, short form of the BSE-Sensitive Index, is a "Market Capitalization-Weighted" index of 30 stocks representing a sample of large, well-established and financially sound companies.

The index is widely used to measure the performance of the Indian stock markets. SENSEX is considered to be the pulse of the Indian stock markets as it represents the underlying universe of listed stocks at The Stock Exchange, Mumbai.

What are the objectives of SENSEX?

The SENSEX is the benchmark index of the Indian Capital Markets with wide acceptance among individual investors, institutional investors, foreign investors and fund managers. The objectives of the index are: (i) To measure market movements, (ii) Work as a Benchmark for funds performance etc.

How is it calculated?

The SENSEX is calculated taking into consideration stock prices of 30 different BSE listed companies. It is calculated using the "free-float market capitalization" method. The market capitalization of a company is determined by multiplying the price of its stock by the number of shares issued by the company. This market capitalization is further multiplied by the free-float factor to determine the free-float market capitalization.

Effect of BSE Sensex on Financial Market

The BSE sensex has so wider reach these days that if you will ask about it in a remote Indian city then you are going to receive some positive feedback on its performance. It has been several times that the BSE sensex figures went down remarkably hitting hard the share market operations & forcing trading companies as well as investors to press panic button. The revival process is still continuing and setting a different trend from that of bigger economies of America & Europe, India is fast recovering from the global recession period. The credit for this goes to the Indian government & the innovative financial measures taken up for consideration by the Reserve Bank of India.

The share investors & financial analysts used to discuss a lot on the BSE market indexes. It allows them to brainstorm on the current market situation & devise useful share trading formulas. The BSE sensex chart shows any fluctuation in the Indian share market prices. The BSE sensitive index covers the prices, performance & calculations of 50 US stock trading companies & 30 Indian live share trading companies. All the BSE market indexes present an overall scenario of different industrial sectors ranging from banking to telecommunication & from automobiles to real estate.

The first time investor should be acquainted with the changing market condition that is reflected well in the BSE sensex figures. The BSE sensitive index reveals all information on the rising & falling share prices of BSE registered companies & provides necessary throughput to investors & analysts. Those searching for sources where they can find the price of complimentary industrial products, raw materials, consumer merchandise, electronics, rubber or iron will be able to get them instantly with BSE sensex. With all these useful information the industrialists can remain updated & work out their production strategy in line with the market demand. If you are thinking to invest in stock market then closely watch BSE sensex nifty calculations & news every day so than you can develop powerful investment plans. Your investment should not be all about buying shares for low price & sell for them at much higher price in opportune time.

The best performing companies can help you generate more business profit. But don’t wait or watch for the rise in the share prices of companies not showing consistency in either the profit legacy or stock values. In such situations the share prices may fall severely without showing any sign of recovery & bringing you severe loss. Hence the onus will be on the proper understanding of the market dynamics, gathering data about the company, the shares where you are more likely to invest, gathering the most recent stock quotes, reading the BSE sensex market indexes & the list continues.

BSE Sensex Crucial in Determining the Market Trend

The global recession period is about to get over & the severely affected banks & equities are slowly reverting back to their previous shape. All the investors trading in BSE stocks will feel glad to know that Bombay Stock Exchange (BSE) is also recovering from the massive effect that economic slowdown has left on it. BSE is one of the Asia’s oldest stock exchanges operating the stocks of a lot of companies from different sectors.

The BSE sensex is the market indicator showing the profit margin of some of the BSE registered companies. The Bombay stock exchange ranks fifth in number of transactions taking place in the stock exchanges all over the world. The BSE sensex is monitored globally due to its extensive role in world economy. It consists of 30 trade stocks of companies governing the 12 key areas of consumer products & economy. Based on a free-float method, the BSE sensex is able to show up the share market conditions through a rise or fall in its sensitive index. Since the leading names of every sector want to be registered with BSE, the number of BSE stock trading companies keeps on rising continuously.

Excluding BSE sensex, the Bombay stock exchange index consists of more than 21 market indexes & out of them 12 are industry stock market indexes. The BSE sensitive index controls everything from debt instruments & derivatives to equity trading of all the 4, 700 or more companies registered with it. The profits earned through the trading of shares of these companies reflect well in the BSE stock prices. BSE has become synonymous to Indian economy & made its presence felt in the 359 towns & cities of India. The BSE is maintained to global standard to make sure that the BSE registered companies get worldwide recognition. As a part of this plan, the values of all market indexes in Bombay Stock Exchange are regularly updated during the transaction hours. The BSE sensex recorded its worst ever fall in January 21, 2008, due to the global economic recession. However it is moving towards normalcy after one complete year.

DLF Universal Limited, HDFC, Bharti Airtel, Hindalco Industries, Grasim Industries, Infosys, ICICI Bank, Mahindra Limited, ONGC, Hindustan Lever Limited, Tata Group, Ranbaxy & Reliance Industries. They are all included in the list of 30 companies having influence on the Bombay Stock Exchange performance. Another important thing for which BSE sensex is very popular is that it notifies us about the rise or fall in the prices of a wide range of merchandise products including iron, gold, silver, electronics, rubber & other industry raw materials. All these information regarding share market will help the industrialists to chalk out their production strategy matching to the demand.

New Range For Sensex and Nifty

When I am writing this Post, Sensex have breached 13000 mark and Nifty also hit sub 4000. My view is that market will be range bound for the next few weeks. It may also depend on commodity prices especially crude oil price, which according to my view may correct significantly to sub $130 mark. And also political situations may affect the market to some extent. Lastly Q1 numbers will be below market expectations.

My advice to traders is to stay away from market for few sessions and for investors it’s good time to enter market with a minimum of 6-12 months perspective, if you are still nervous to get into the market, my advice to you is buy some scrips in lots, so that they can be averaged out.
If you people are not confident in picking stocks then you can leave it to the experts. Select some mutual fund scheme with a good track record. It’s also a good time to invest for tax saving purposes. Choose a good mutual fund ELSS scheme (with a good track record) which offers tax benefit. You also have the option of ULIP plans which offers tax benefit (80C section) and also life insurance.

Here's my selection of mutual funds under ELSS scheme where you can invest without any hesitation

-SBI-Magnum Tax gain
-Principal personal tax savings
-HDFC tax saver
-principal tax saver

Thank you all you guys for the support, see you in the next week hopefully with a positive market trend.

Sensex - Stock Market Simulation

NASDAQ, Dow Jones, BSE & NSE; Do they ring any bell? They surely must have. Not every one knows what the color of money is, but what people do know is they want to feel more money and see more money.

Another well known fact is that the ever increasing number of the average human being would never want to jeopardize his money, which for him, is the sole means of existence. In the end, it is the human craving for more that makes him succumb to his urge and makes him take a plunge.

The only thing that makes the average investor lose out, is his inexperience. The Raging Bull lures many new people into its arena, but little do they realize what's in store for them. The market trends are tough to gauge. No one can ever be sure how high or low will stocks leap! Everything on earth has a risk involved, so does this market. We can't live with it but we can work around it.

Imagine a scenario where you as an amateur investor decide to take a dip. Based on a few tips from a few places, you make your pick. The possibility is that you might hit the nail, or may be you might get nailed. Every player who is a benchmark, be it a game, trade, business (depends on whatever you cal it) has had some level of practice and has learnt things the hard way. People have lost a lot of hope, money and many other things trying to figure out the market. They had to do it the hard way because they didn't have a place to hone their skills. A place where they could learn tricks of the trade, where they could make an investment without the fear of losing anything and at the same time, learn a lot more than the others.

But the question still remains! Would there be such a place. Is it one of those wonderland parties that people always think about and never find? Well!! Not this time. This time round all you investors are in for a good time. It fills me with pride to present to you the game of your lifetime. The SenSex Simulation!! This game is an assortment of all that I have gathered over the years.

The Game is a complete replication of the stock markets with live feeds for the values of stocks. Registered members get to play around with money in their account, using which they can purchase and sell off stocks. The game would also give you your daily stats. These would include your portfolio, the value of your stocks, and whether you have gained or lost out, relative to the market. The SenSex Simulation provides you with a platform to stand out of the ring and get a look and feel of the rumble.

“By the time you know the rules, you're too old to play the game!” It's never too late to start learning. Life is a vicious circle. Someone, who does not stop learning, never stops growing.

It's Time to tame the BULL!!