Showing posts with label nse. Show all posts
Showing posts with label nse. Show all posts

Stock Market Tutorials for Beginners

WHAT IS STOCK MARKET?

Different business in India are having their expansion plans, all together they can't manage to have such big amount to use, so they are calling people to participate in their companies and get profit out of that in form of dividend, stock split, bonus share etc. Most stocks are traded on exchanges, which are places where buyers and sellers meet and decide on a price. Some exchanges are physical locations where transactions are carried out on a trading floor. The purpose of a stock market is to facilitate the exchange of securities between buyers and sellers, reducing the risks of investing.


WHY COMPANIES ISSUE STOCK?

1. When a company would like to grow, it issues stocks to raise funds and pay for ongoing business activities.
2. It is popular because:
I. The company does not have to repay the money
II. Paying dividends is optional
* Dividends are distributions of earnings paid to stockholders


STOCK MARKET BASICS

1. A stock is a tradable security that a firm issues to certify that the stockholder owns a share of the firm.
2. A share represents an investor's ownership in a "share" of the profits, losses, and assets of a company. It is created when a business carves itself into pieces and sells them to investors in exchange for cash.
3. In order to buy / sell a share, you need to first become a client of one of the stock market members who are commonly known as stock brokers.


STOCK EXCHANGE IN INDIA
1. The Bombay Stock Exchange (BSE)
2. National Stock Exchange of India Ltd (NSE)

FACTORS AFFECTING STOCK MARKET
1. Inflation
2. GDP
3. Global Markets
4. Govt policies
5. Market trends
6. Financial statements
7. News

FACTORS AFFECTING STOCK PRICE
1. Financial statement
2. Order book
3. Management
4. Land bank
5. Future plans
6. Growth
7. Commodity prices





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Sensex slips on profit booking

Mumbai, Jan 25 (IANS) A benchmark index for an Indian equities market Tuesday slipped from its intra-day highs as stocks first rose after only a 25 basis points hike in interest rates by the Reserve Bank of India, but later slipped sharply on profit booking.

Reserve Bank of India (RBI) Governor Duvvuri Subbarao hiked the repurchase or repo rate to 6.5 percent from 6.25 percent and reverse repo rate to 5.5 percent from 5.25 percent. Other rates like cash reserve ratio and statutory liquidity ratio remained unaltered.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 19,227.42 points, was ruling at 19,219.67 points - up 69.01 points or 0.36 percent from its previous close at 19,151.28 points.

The Sensex had climbed 189.71 points post-rate hike to 19,340.99 points.
The 50-scrip S&P CNX Nifty of the National Stock Exchange too was in the green, trading 0.37 percent higher at 5,764.65 points.

Broader markets were ruling moderately higher with the BSE midcap index up 0.22 percent and the BSE smallcap index up 0.37 percent.

Banking stocks were among the top losers, having risen in the past few days in anticipation of a greater rate hike, while capital goods and metals scrips rose.

The market breadth was positive, with 1,463 stocks advancing compared to 1,228 scrips on the decline, while 110 stocks remained unchanged.

Among gainers on the Sensex were NTPC, Hindalco Industries, Sterlite Industries and L&T, while the losers included ICICI Bank, Tata Motors, HDFC Bank and M&M.

Other Asian stock markets were trading mixed with concerns persisting that high inflation would lead to central banks in the region tightening rates further.

The Japanese Nikkei closed 1.15 percent up at 10,464.42 points, while Hong Kong's Hang Seng rose 0.39 percent to rule at 23,894.36 points.

However, the Chinese Shanghai Composite index was ruling 0.84 percent lower at 2,673.13 points.

More: Equity Research

Tips for those who intend to invest in NSE and BSE market

Today, everyone wants to make some extra money. And, when there are a lot of opportunities, right at your doorstep, it becomes even more alluring. The best thing is that you don’t need to invest huge amounts of money; you just need to be well informed. Out of all the money making opportunities available, the stock market is the best. And while it is pretty unpredictable, it has, in recent times, given its investors various reasons to celebrate. Therefore, prudence suggests that now is the perfect time to invest in the NSE and BSE market.

However, there are some tips that one needs to follow before investing in the stock market. The first and the most important tip, is to follow affairs of NSE and BSE market and monitor the updates regularly. Not only will this provide you with a better understanding of the market and its changing trends, it will also help you understand the crucial aspects such as which sector is delivering positive results, which companies are basking in gains etc. All this becomes easy, as you can have a quick view of the live stock market, at the click of a mouse.

The smartest move is to gather as much information as you can about the stock that you are planning to buy. The most crucial information that one must extract is the changes in the movement of stock prices, according to the market trends, over a certain period of time. One should also conduct intensive research about the past and present performance of the company. Further, one should track the growth record of the company based on the pictures presented by BSE live, share market live and various other factors.

Now, the most crucial tip is not to panic over small losses, as profit-loss is the part and parcel of the stock market game. The wise thing to do is to understand the very core of the market and its functioning by observing the performance of NSE and BSE market regularly. Slowly and steadily, experience will teach you maintain balance between profit and losses and also make profitable deals out of them, more often than not.
So, the crux of this game is that if you are a smart and well-informed investor, you can mint a great deal of money from stock market trading.

Read more: http://www.nsebse.com/tips-for-those-who-intend-to-invest-in-nse-and-bse-market/