Boom ! Stock Market is booming..
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Indian stock market : The Bombay Stock Exchange(BSE) and The National Stock Exchange
From last few days Stock Market is booming, it touches new heights in almost all sessions. And it attracts new investors, because everyday we see in news saying Stock market at record highs it. Global stock markets also ended the final trading week of the year on high. Gujarat election has also played big roll of new height of the market. Calendar 2017 has achieved the commitment of the Indian stock market after making major indices up by 28%.
Stock markets are a maze that demands an expert for guided direction and success. Trade in stock markets means the transfer for money of a stock or security from a seller to a buyer.
There are two main sections – The Primary market and The Secondary market. The primary market is where new issues are first sold through initial public offerings (IPO). After securities have been issued, they are frequently traded in the secondary markets.
When we talk about returns on investment we generally consider it to be positive gains. However, returns on investment can also go negative. Equity investments are very volatile in nature and investing in them has a risk element attached. You need to be cautious while entering the market.
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When to buy or to sell ? Typically our decision is usually heavily influenced by the actions of our acquaintances, neighbors or relatives. Thus, if everybody around us is investing in a particular stock, the tendency is to do the same. But this strategy is bound to backfire in the long run. Never trade in emotions.
It’s only a stock picker’s market where a bottom-up approach would work. You can’t invest in the whole board because the overall market valuation is high; therefore, stable businesses and strong balance sheets are the ones whose records create value. Most importantly, these should be available on discounts for their intrinsic value.
How to start ? Beginners to investing in stocks markets in India first need to contact one of the share brokers, who are members of one of the stock exchanges in the country. There are many brokers like – Sharekhan, Geojit, India Infoline, Angel Broking etc.
How much one should invest ? Equities are high risk and high return instruments, how much one should invest would really depend on how much risk can be tolerate.
How to plan ? Financial planning starts with a review of your overall financial profile, and not at investing. Proper research should always be undertaken before investing in stocks. Before investing in a company, you should know what business the company is in. You can reduce the risk of your investment in stock market by holding on to your investments for a longer tenure.
There are lots of good websites available, which gives details on current market, particular stocks, technical analysis, fundamental analysis, international markets, etc. One should study the same deeply, before investing. Also you can Google !
There are different types of Investment schemes :
- ELSS Equity Linked Savings Scheme
- SIP Systematic Investment Plan
- Mutual Funds
You can also invest in derivatives, such as options and futures, to speculate or to hedge positions in stocks and other assets.
Experts Says : “Equity issuance in India next year will outdo 2017’s record as a slew of companies take advantage of a booming stock market to raise growth capital, according to a top arranger of share sales in the nation. “