Stock brokers play a most important role in the Brokerage Firm. Stock Brokers are the Middleman between the stock exchange and trader/client/customers. Stock Brokers are a Professional trader. They buy & sell shares on behalf of clients and their standing instructions. The stock broker may also be known as a registered representative or an investment advisor. Stock brokers maintains the number of transactions of individual clients of institutional customers. Brokerage firms & Broker dealers are sometimes referred to as stockbrokers. This includes both full service brokers & Discount brokers. As a representative of his clients, a stock broker seeks the best deals to buy and sell stock. They usually deal in all types of securities and also handle derivatives, such as Commodity Futures, Currency Market, Option Market, Future Market. They also advise their clients about when to make transactions and guide them about what to look for in market dealings. Stock brokers are paid in form of commissions which usually consist of a percentage of a value of the trade transaction in a stock market. Brokerage firms are also known as discount brokers as they offer trade transactions at a single price. A stock broker provides advisory services for investing in a stock market and in return an investor pays a fixed fee to them. Margin interest payments are charged to investors for borrowing against the brokerage account for investment in a stock market. They also take service charges from their clients for performing administrative tasks, such as for handling Individual Retirement Account (IRA) and for mailing stocks in the form of certificates.
Stockbroker Pros and Cons
The job of a stockbroker is not without its challenges. Here are some of the pros and cons of becoming a stockbroker:
Pros:
Great career option for people who have in-depth knowledge of the stock market.
Offers high commission-based income potential
Good fit for ambitious individuals with strong selling skills
Cons:
Must be able to handle rejection.
Extremely competitive work environment.
May require excessively long work hours.
May have difficulty building a significant client base due to availability of online trading.
The Internet is stuffed with resources. You’ll find tons of data out there free of charge. However, as the count increases, it’s actually inconceivable to remember all of the websites that you simply visit even in a single day.
However, when the subject comes to acquiring the related info and the maximum information and all the related data, one always wish to persist with his favorite websites where he may get all the quality information.
Stock market investing is a risky venture. It’s worthwhile to be very cautious whereas putting your hard-earned money into it. Before diving into the dynamic stock market, you must possess the best set of information and sufficient information. So, as an investor, you should be aware of a few of the finest websites for Indian stock market analysis.
All have their own favorites! However, in terms of selecting the most effective websites for Indian stock market research, we would have a standard selection. Let’s see if our choice matches together with your short term and long term investing objectives.
The website was started by the husband and wife team of Victor and Sangeeta Fernandes. In 2000, it was acquired by E-Eighteen dot com, a subsidiary of the Indian TV channel TV18. The couple were given 7.5% of the equity capital and E-18 got 92.5% following the acquisition. In 2014, Reliance Industries acquired Network 18 and TV18. This acquisition included Moneycontrol.com and several other websites and channels owned by TV18.
Moneycontrol is definitely the preferred website among the many Indian stock investor. You’ll find all types of information on this website like market news, trends, charts, livestock prices, commodities, currencies, mutual funds, personal finance, IPOs and many others.
That is certainly one of many extremely standard stock market website for an Indian investor. In different words, it may be considered probably the most accessed website, each by potential and present stock investors.
You even have a platform to track your investments and create a wish list too. Furthermore, Money Control mobile app is much more handy to put in and use. So, an entire bundle for a stock investor, whether a beginner or a professional.
It gives numerous stock securities info like their Sensex and Nifty value. Stock securities include Equities, debts, Latest IPOs, currencies, live stocks, commodities, and derivatives. Historic knowledge and present efficiency of the various companies can also find right here.
Forums are also facilitated for doing discussions in the group. You’ll be able to refer to those boards and may update yourself with the updated information.
The National Stock Exchange of India Limited (NSE) is the leading stock exchange of India, situated in Mumbai. The NSE was established in 1992 as the primary demutualized electronic trade within the nation. NSE was the primary exchange within the nation to offer a modern, totally automated screen-based electronic trading system which provided simple trading facility to the traders spread throughout the length and breadth of the country. Vikram Limaye is Managing Director & Chief Executive Officer of NSE.
It has a complete market capitalization of greater than US$2.27 trillion, making it the world’s 11th-largest stock exchange as of April 2018. NSE’s flagship index, the NIFTY 50, the 50 stock index is used extensively by investors in India and all over the world as a barometer of the Indian capital markets. Nifty 50 index was launched in 1996 by the NSE. Nevertheless, Vaidyanathan (2016) estimates that solely about 4% of the Indian economic system / GDP is definitely derived from the stock exchanges in India.
In contrast to countries like America where nearly 70% of the GDP is derived from bigger companies and the corporate sector, the corporate sector in India accounts for only 12-14% of the nationwide GDP (as of October 2016). Of these solely 7,800 corporations are listed of which solely 4000 commerce on the inventory exchanges at BSE and NSE. Therefore the stocks trading on the BSE and NSE account for under round 4% of the Indian economic system, which derives most of its earnings associated exercise from the so-called unorganized sector and households.
As the company has an obligation to submit their financial reviews to the NSE, therefore you may always find the financial information of any firm right here, in case you may find it elsewhere. You’ll find details about the corporates, domestic and foreign buyers, new listings, IPO and many others. NSE India also offers programs and certifications.
It ranks effectively within the prime stock research websites in India. You get to see tons of historic information relating to NSE and Nifty as effectively. You additionally take pleasure in free technical analysis of Indian stocks, reports, charts and different website tools.
The Bombay stock exchange was founded by Premchand Roychand. He was probably the most influential businessmen in 19th-century Bombay. A person who made a fortune within the stockbroking business and got here to be often known as the Cotton King, the Bullion King or simply the Big Bull. He was also the founding father of the Native Share and Stock Brokers Affiliation, an institution that’s now referred to as the BSE.
Whereas BSE Ltd is now synonymous with Dalal Street, it was not all the time so. The first venue of the earliest stock broker meetings within the 1850s was in relatively pure environs – beneath banyan trees – in entrance of the Town Hall, the place Horniman Circle is now located. A decade later, the brokers moved their venue to a different set of foliage, this time under banyan trees at the junction of Meadows Street and what’s now referred to as Mahatma Gandhi Road. The group ultimately moved to Dalal Street in 1874 and have become an official group referred to as “The Native Share & Stock Brokers Association” in 1875.
On August 31, 1957, the BSE grew to become the primary stock exchange to be acknowledged by the Indian Government under the Securities Contracts Regulation Act. Historically an open outcry flooring trading exchange, the Bombay Stock Exchange switched to an electronic trading system developed by CMC Ltd. in 1995. It took the exchange solely 50 days to make this transition. The BSE has also launched a centralized exchange-based internet trading system, BSEWEBx.co.in to allow traders wherever on the planet to trade on the BSE platform.
The BSE can also be a Partner Exchange of the United Nations Sustainable Stock Exchange initiative, becoming a member of in September 2012.
BSE established India INX on 30 December 2016. India INX is the first international exchange of India.
That is much like NSE India. Nevertheless, you will discover extra historic information right here as BSE Sensex has been included for an extended time in comparison with NSE Nifty.
As well as, over 5,500 companies are listed on BSE whose company actions and financial information could be found on this website. You may also obtain the whole checklist of ‘public’ companies from this website.
Investing.com is a global financial portal and internet brand owned by Fusion Media Limited, registered in the British Virgin Islands, composed of 28 editions in 21 languages and mobile apps for Android and iOS that provide news, analysis, streaming quotes and charts, technical data and financial tools about the global financial markets. The editions each cover a broad variety of financial vehicles including Stocks, Bonds, Commodities, Currencies, Interest Rates, Futures and Options
Branded initially as Forexpros.com, the portal launched in 2007 with editions in four languages: English, Spanish, Hebrew and Arabic, offering free data, information, analysis, news and tools over the Forex market for traders. Six additional editions followed in 2008, growing to a total of 18 different localized editions by the end of 2011.
Investing.com currently offers 30 localized (Language localisation) editions in 22 languages including: Arabic, Chinese, Dutch, English, Finnish, French, German, Greek, Hebrew, Italian, Indonesian, Japanese, Korean, Malay, Polish, Portuguese, Russian, Spanish, Swedish, Thai, Turkish and Vietnamese. Additional editions are dedicated to the Australian, Brazilian, Canadian, Hong Kong, Indian, Mexican and South African markets.
Investing is a good site if you want to find all the information on the same website simultaneously. You can do both fundamental and technical analysis of stocks on this website. The different options available on this website are general info, chart, news and analysis, financials, technicals, forum etc.
Its wide range of tools and comprehensive data can surely incline any investor towards it. Stock screener, Fed rate monitor tool and currency converter are the biggest attractions. The live and interactive charts, stocks charts, indices and forex charts further add to its advantages.
Investing is just like the best newspaper for stock market India.The screen of the site reproduces every detail information towards you regarding the NAV value of your stocks, the index value, the peer information and many other details which can be simplified by customizing the screen according to your preferences.
Screener, a stock analysis instrument especially meant for equity traders in India. With this, you’ll be able to have entry to long term financials of various companies and additional simplify it. Thereby, turning lengthy knowledge into small helpful chunks by customised studies. So, you’ll be able to simply make your self acquainted with helpful financial info of an organization.
Furthermore, with the assistance of it’s screening instrument, you’ll be able to design your personalised display screen and get computerized alerts to trace outcomes. A mixture of a “Firm evaluation” and a “screening” instrument, this absolutely attracts readers to navigate by it.
It is among the greatest Indian stock market technical evaluation web site. It serves you normal details about the market financial system, the corporate efficiency previously and the current, their friends out there and their efficiency too, the corporate’s revenue and losses and the balance sheet, analysis studies and numerous evaluation instruments just like the charts are provided on this platform.
The sophisticated lengthy knowledge might be personalised and customised as per your selection and choice which is able to simplify the understanding.It additionally supplies display screen alerts on the person’s mobile and the websites additionally for each up to date info in the market.
“The ratio of the volume of put options traded to the volume of call options traded, which is used as an indicator sentiment (bullish or bearish).”
Put-call ratio (PCR) is an indicator that forecast the trend of the INDEX/STOCKS.
A “Put” or put option is a right to sell an asset at a predetermined price. A “Call” or call option is right to buy an asset at a predetermined price. Many traders use options for directional beta; buying call when market bullish & buying put when market bearish.
PCR is a popular derivative indicator, specifically designed to help traders gauges the overall sentiment of the market. The ratio is calculated either on the basis of options trading volumes or on the basis of the open interest for a particular period.
This indicator will show you which gang is dominating the market; the bearish gang (short masters), or the bullish gang (long masters).
The put call ratio can be calculated for any individual stock, as well as for any INDEX, or can be aggregated.
HOW TO ANALYSES PCR:
The put call ratio is calculated by the dividing the number of OPEN INEREST of put option by the number of OPEN INEREST of call option.
PCR (OI) = PUT OPEN INTEREST ON GIVEN DAY/ CALL OPEN INTEREST ON SAME DAY:
PCR for marker wide position can be also be calculated by taking total number of OI for all OI call options & for all OI options in a given series.The PCR can be calculated for indices, indivu
Eg.
PUT (OI)CALL (OI)
CURRENT MONTH CURRENT MONTH
NEXT MONTH NEXT MONTH
FAR MONTH FAR MONTH
PCR = PUT (OI)/ CALL (OI)
PCR = ?
A rising put-call ratio, or a ratio greater than .7 or exceeding 1, means that equity traders are buying more puts than calls. It suggests that bearish sentiment is building in the market. Investors are either speculating that the market will move lower or are hedging their portfolios in case there is a sell-off.
A falling put-call ratio, or below .7 and approaching .5, is considered a bullish indicator. It means more calls are being bought versus puts.
“A stock is a general term used to describe the ownership certificates of any company. A share, on the other hand reffers to the stock certificate of particular company . Holding a particular company’s share makes you a shareholder.”
The stock (also capital stock) of a corporation is all of the shares into which ownership of the corporation is divided. In American English, the shares are company known as “stocks”.
A stock is an investment. When you purchase a company’s stock, you’re purchasing a small piece of that company called a share.
A stock is a type of investment that represents an ownership share in a company. Investors buy stocks that they think will go up in value over time.
A share of company held by an individual or group. Corporations raise capital by issuing stocks & entitle the stock owners (shareholders) to partial ownership of the corporation. Stocks are bought & sold on what is called an Exchange. There are several types of stocks & the two most typical forms are preferred stock & common stock.
Owning a stock gives you certain rights & those rights can differ depending on the types of stock you own.
There are two main types of stock:
COMMON STOCK
PREFERRED STOCK
1. COMMON STOCK:
Common stock is a form of corporate equity ownership. It being primarily used in the united states. They are known as equity shares or ordinary shares in the UK.Common stock comes with voting rights; as well as the possibility of dividends & capital appreciation. Each share of common stock represents a share of ownership in a company. If a company does well or the value of its assets increases, common stock can go up in value. On the other hand, if a company is doing poorly, a common stock can decrease in value. Simply put, common stock allows investors to share in a company’s success over time, which is why they can make great long-term investments.
2. PREFERRED STOCK
“Preferred stock is also known as preference stock. The word “Preferred” refers to the dividends paid by the corporation. Each year, the holders of the preferred stock are to receive their dividends before the common shareholders are to receive any dividend”.Preferred stockholders generally do not have voting rights, though they have a higher claim on assets & earnings that the common stockholders.
Preferred shares can be converted to a fixed number of common shares, but common shares don’t have this benefit.Like bonds, preferred stocks are rated by the major credit rating companies. The rating for preferred stocks is generally lower than for bonds because preferred dividends do not carry the same guarantees as interest payments from bonds & because preferred stock holders claims are junior to those of all creditors.
Some things you need to know about stocks:
a. P/E RATIO –
The price to earnings ratio (P/E ratio) is the ratio for valuing a company that measures its currents share price relative to its pre share earnings (EPS)…. P/E ratios are used by investors & analysts to determine the relative value of a company’s shares in an apple to apples comparison.The ratio is used for valuing companies & to find out whether they are overvalued or undervalued.Earnings are important when valuing company’s stock because investors want to know how profitable a company is & how profitable it will be in the future.
b. CHART –
Chart reading is the single most important investing skill you’ll ever learn. To understand why stock chart are so valuable. Chart tells you a whole story about stocks. The weekly chart helps you see longer term trends. And daily chart helps you spot specific buy & sell signals while daily price fluctuation perspective.
c. Dividend –
If you don’t have time watch the market every day, and you want your stocks to make money without that kind of attention, look for dividends. Dividends are like interest in a savings account. You get paid regardless of the stock price. Dividends of 6% or more are not unheard of in high quality stocks. Before purchasing a stock, look for the dividend rate. If you simply want to park money in the market, invest in stocks with a high dividend. (For more, see Why Dividends Matter.)
d. Taxes Can Take A Bite Out Of Your Profits –
The FANG stocks – Facebook FB +0%, Amazon.com AMZN +0%, Netflix NFLX +0% and Google GOOGL +0% (Alphabet) — had a great run in 2015, with returns ranging from 34% to 134%, but from a tax perspective any investor who bought last year and eyeing the exits wants them to keep climbing. That’s because the one-year mark is a line of demarcation for the tax man.
Selling stocks, you’ve held for less than a year triggers a short-term capital gain, taxed as ordinary income. That could mean kicking back anywhere from 25% to 39.6% to Uncle Sam. But hold those same stocks for at least 12 months and the tax rate drops to 15% for most tax brackets.
WHY TO INVEST IN IT
Investing in the stock is the only way most people have of building real wealth. Stock is just one of many potential places to invest your money. Investing in stock is often risky, which draw attention to huge gains & losses of some investors.
One of the primary benefits of investing in the stock market is the chance to grow your money. Over time, the stock market tends to rise in value, though the prices of individual stocks rise and fall daily. Investments in stable companies that are able to grow tend to make profits for investors. Likewise, investing in many different stocks will help build your wealth by leveraging growth in different sectors of the economy, resulting in a profit even if some of your individual stocks lose value.
Stocks are risky This means they don’t have a guaranteed return and sometimes lose money. However, the long-run trend of the stock market has been undeniably upward. Stocks have the highest return of any investment asset over the long term. According to the Federal Reserve, the stock market has grown by an average of more than 10 percent a year over the past 50 years. During this same period, government bonds only grew by 5 percent a year. If you can stomach the market swings, you will see the highest return on your money with the stock market.
Purchasing stocks of companies operating in different sectors as well as segments is possible, which helps in optimizing the asset-allocation and provides diversification.
“A mutual fund is a professionally managed investment scheme, usually run by an asset management company that brings together a group of people & invests their money in stocks, bonds & other securities.”
INTRODUCTION:
Mutual funds are the most popular investment types for the everyday investor. Because they are easy to use in many in many ways, investing for dummies. A mutual fund is a kind of investment that uses money from many investors to invest in stocks, bonds & other types of investment. A fund manager decides how to invest the money & for this he is paid a fee, which comes from the money in the fund. All the MUTUAL FUNDS are registered with SEBI.
In simpler terms, mutual funds are like baskets. Each basket holds certain types of stocks, bonds or a bland of stocks & bonds to combine for one mutual fund portfolio.
Eg: An investor who buys a fund called XYZ international stock is buying one investment security, the basket that holds dozens or hundreds of stocks from all around the globe, hence the “International” monike.
TIP’S FOR BEGINNERS INVESTING IN MUTUAL FUNDS
Start saving & investing early in life.
Try to understand the fund in which you are investing.
Check the past performance of your mutual fund.
Don’t avoid Index fund.
Experience of fund managing team
Do not commit common mistakes
Understanding the risk involved
Keep your investment objective clear.
The NAV does not matter.
Diversify your investment over time.
Have an investment discipline.
Invest in stocks if you are prepared to take risks.
Never forgot your mutual fund investment.
Stay invested for a longer period of time.
NAV ( NET ASSET VALUE )
NET ASSET VALUE is the total asset value (net of expenses) per unit of the fund & is calculated by AMC (asset management company) at the end of every business day. In order to calculated the NAV of a mutual fund, you need to take current market value of the funds assets minus the liabilities, if any & divide it by the number of share outstanding. NAV is calculated as follows.
NAV Rs. = MARKET/FAIR VALUE OF SECURITIES + ACCRUED INCOME + RECEIVABLE + OTHER ASSETS + ACCRUED EXPENSES – PAYABLES – OTHER LIABILITIES
/ NO.OF UNITS OUTSTANDING OF THE SCHEME/OPTION
Eg. If the market value of securities of mutual fund scheme is Rs. 500 lakh & the mutual fund has issued 10lakh units of Rs. 10lakh each to investors, then the NAV unit of the fund is Rs.50.
ADVANTAGES OF MUTUAL FUND
DIVERSIFICATION
Mutual funds provide the benefits of diversification across different sectors & companies. A single mutual fund can hold securities from hundreds or even thousands of issuers. This by investing in a mutual fund, you can gain from the benefits of diversification & asset allocation, without investing a large amount of money that would required to build an individuals portfolio. The diversification considerably reduces the risk of serious monetary loss due to problems in a particular company or industry.
AFFORDABILITY
You can begin buying units or shares with a relatively small amount of money.
Eg. Rs. 500 for the initial purchase.
Some mutual funds also permits you to buy more units on a regular basis with even smaller installments.
Eg. Rs.50 per month.
LOW TRANSACTION COST
Due to economics of scale, mutual funds pay lower transaction costs. The benefits are passed on to mutual fund investors which may not be enjoyed by an individual who enters the market directly.
TRANSPARENCY
Funds provide investors with updated information pertaining to the markets & schemes through fact sheets, offer documents, annual report etc.
DISADVANTAGES OF MUTUAL FUNDS
· High Expense Ratios and Sales Charges
If you’re not paying attention to mutual fund expense ratios and sales charges, they can get out of hand. Be very cautious when investing in funds with expense ratios higher than 1.20%, as they will be considered on the higher cost end. Be weary of 12b-1 advertising fees and sales charges in general. There are several good fund companies out there that have no sales charges. Fees reduce overall investment returns.
· Management Abuses
Churning, turnover and window dressing may happen if your manager is abusing his or her authority. This includes unnecessary trading, excessive replacement and selling the losers prior to quarter-end to fix the books.
· Tax Inefficiency
Like it or not, investors do not have a choice when it comes to capital gain payouts in mutual funds. Due to the turnover, redemptions, gains and losses in security holdings throughout the year, investors typically receive distributions from the fund that are an uncontrollable tax event.
· Poor Trade Execution
If you place your mutual fund trade any time before the cut-off time for same-day NAV, you’ll receive the same closing price NAV for your buy or sell on the mutual fund. For investors looking for faster execution times, maybe because of short investment horizons, day trading, or timing the market, mutual funds provide a weak execution strategy.
Share means you become the company owner partly. In share market, shares are bought & sold. The stock market is a place, however besides share of companies, other instruments like bonds, mutual funds & derivative contracts too are traded in the stock market.
Always remember one thing when working in share market, that it has to be considered as your secondary income source.
Look at share market as part time income.
While working in share market does not use your entire amounts for intraday trading. Make good allocation of your amounts, use 80:20 formula. Means if I have Rs.1 lakh so 80,000 (i.e 80%) I will use for delivery-based investment & remaining 20,000/-(i. e. 20%) I will use for trading. Always control your losses, always trade with strict stop losses or else please do not trade, even while doing investment we can earn good returns.
There are 2 types of people working in share market.
First is investor who does Investments.
Second is trader who does Trading.
The most important thing in share market is that it runs on emotions, so here we have to control our emotions. If you have earned profit do not be happy & in emotions you do not have to trade more or if you have incurred losses do not be sad.
Stock market are some of the most important parts of today’s global economy. Countries around the world depend on stock market for economic growth. However, stock markets are relatively new phenomenon. They haven’t always played an important role in global economics.
The top 10 stock market in the world today ranked by market capitalization.
NEW YORK STOCK EXCHANGE
NASDAQ
TOKYO STOCK EXCHANGE
LONDON STOCK MARKET EXCHANGE
EURONEXT
HONG KONG STOCK EXCHANGE
SHANGHAI STOCK EXCHANGE
TORONTO STOCK EXCHANGE
FRANK FURT STOCK EXCHANGE
AUSTRALIAN SECURITIES EXCHANGE
Other rising stock market outside of the top 10 include the BOMBAY STOCK EXCHANGE based in Mumbai, INDIA as well as the BM & FBOVESP stock exchange based in SAO PAULO, BRAZIL.
*TIPS FOR BEGINNERS IN STOCK MARKET
UNDERSTANDING HOW MARKET BEHAVE.
STOCK MARKET VALUATION MATTERS.
THINK LONG – TERM & BE PATIENT.
LOOK FOR TOP BRAND COMPANIES THAT CONTROL PRICES.
MINIMIZE YOUR MISTAKS & LEARN FROM THOSE YOU MAKE.
NEVER OVERPAY.
NEVER INVEST IN A BUSINESS YOU CANNOT UNDARSTAND.
DON’T COMPROMISE ON THE QUALITY OF BUSINESS.
JUST DON’T LISTEN TO THOSE WHOM YOU TRUST, START TAKING ADVICE FROM THOSE WHO ALREADY INTO IT & ARE EXPERTS.
EVERYDAY WATCH CNBC AWAZ, ZEE BUSINESS, NDTV PROFIT, ET NOW etc LIKE BUSINESS CHANNELS TO GET LATEST MARKET UPDATES.
READ NEWSPAPERS LIKE ECONOMIC TIMES, FINANCIAL EXPRESS, BUSINESS STANDARD.
TO DO INVESTMENTS IN MARKET THAT IS DELIVERY BUY SUGGESTED MONTHS ARE JUNE, JULY& AUGUST.
BEST MONTH FOR SELLING IS JANUARY OR FEBRUARY (before budget).
DO MOCK TRADING OR PAPER TRADING FOR 1 WEEK WHILE LEARNING.
BULLISH MARKET:
A trend in financial markets can be defined as direction in which the market moves. ‘bullish trend’ is an upward trend in the price of an industry stocks or the overall rise in broad market indices, characterized by high investor confidence.
BEARISH MARKET:
A ‘BEAR MARKET’ is a condition in which securities prices fall & widespread pessimism causes the stock markets downward spiral to be self-sustaining. Investors anticipate losses as pessimism & selling increases.
STOCK EXCHANGE
Stock exchange is a place where buying & selling of shares happens.
BSE – BOMBAY STOCK EXCHANGE
NSE – NATIONAL STOCK EXCHANGE
THESE TWO ARE NATIONAL LEVEL EXCHANGE IN INDIA.
To know any countries economic condition & stock markets rate fluctuation a parameter known as INDEX is used. A stock index or stock market index is a measurement of a section of the stock market. It is computed from the prices of selected stocks. It is tool used by investors & financial managers to describe the market, & to compare the return on specific investments.
SENSEX: (or sensitive index)
BOMBAY STOCK EXCHANGE (BSE) index is known as SENSEX.
Sensex started on 01/01/1986 & its base rate was Rs.100/-
Sensex is calculated by average price of TOP 30 company by market capitalization.
On 25 july 2001 BSE launched dollar – 30, a dollar- limited version of S&P BSE SENSEX.
The base year of SENSEX is 1978-1979 & the base value is 100
More than 5500 companies are publicly listed on the BSE.
As of 25th September 2017, the full market capitalization of S&P BSE Sensex was about Rs.54,637.0878 billion (US $837 billion) (37% of GDP) while its free float market capitalization was Rs.30,094.2286billon (US $4616). During 2008-12, Sensex 30 Index share of BSE market capitalization full from 49% to 25% due to the rise of sectoral indices like BSE PSU, BANKEX, BSE- TECK etc.
Analysts & investors use the sensex to observe the growth, development of particular industries & booms & base of the Indian economy.
If sensex goes up, it means that most of the stocks in India went up during the given period. If the sensex goes down, this tells you that the stock price of most of the major stocks on the BSE has gone down
METHOD ADOPTED FOR SENSEX CALCULATION:
The method adopted for calculating sensex is the market capitalization weighted method in which weights are assigned according to the size of the company larger the size, higher the weightage.
NIFTY:
NATIONAL STOCK EXCHANGE (NSE) index is known as NIFTY.
Nifty started on 03/11/1995.
Nifty is calculated by 23 various sectors & top 51 companies.
The S&P nifty (also known as NSE nifty-50 or Nifty) is a stock Index in India.
The constituents of the Index change periodically, depending on liquidity, availability of floating stock, turnover & volume of transactions.
S&P (NX Nifty, which is owned & managed by India Index sevices & products ltd. (IISL), is India’s first company to focus upon a stock Index as a core product. IISL has a marketing & licensing agreement with standard & poor’s (S&P) Index sevices.
Maximum volumes take place on NSE & hence enjoy leadership position in the country today.
The National Stock Exchange (NSE) in India’s leading stock exchange covering 364 cities & towns across the country.
NSE has played a catalytic role in reforming the Indian securities market in terms of microstructure, market practices & trading volumes.
NSE’s mission is setting the agenda for change in the securities markets in India. The NSE was set up with following objectives:
Establishing a nation-wide trading facility for equities, debt instruments & hybrids.
Ensuring equal access to investors all over the country through an appropriate communication network.
Providing a fair, efficient & transparent securities market to investors using electronic trading system.
Enabling shorter settlement cycles & book entry settlements systems.
Meeting the current international standards of securities markets.
DIFFERENCE BETWEEN BSE and NSE
BASIS FOR COMPARISON
BSE
NSE
Introduction
Bombay Stock Exchange is the oldest financial market in the country, which offers high speed trading to its customers.
National Stock Exchange is the biggest capital market of the country. The exchange is a front runner in the introduction of the fully automated, electronic trading system across the nation.
Founded in
1875
1992
Benchmark index
Sensex
Nifty
Total listed companies (April 2015)
5650
1740
Market Capitalization
Around 1.68 trillion
Around 1.5 trillion
Global Rank
10th
11th
Network
Over 400 cities
Over 2000 cities
TYPES OF ORDERS
MARKET ORDER
Market order means while doing trading whatever rate is there in front of you, you buy or sell at that prevailing rate is known as MARKET ORDER.
Eg. SBIN @250
And immediately you buy or sell at the same price means MARKET ORDER.
BUY SBIN @250
LIMIT ORDER
Limit order means while trading I will not place buy/sell order at the current going rate but at rate which I wish to put. This is known as LIMIT ORDER.
When we place a STOP LOSS or TARGET ORDER these are all limit order because we place stop loss & target order at rate which we wish to place.
Eg. SBIN CMP @250
BUY SBIN @249.50 ( pending limit order)
SELL SBIN @ 250.50 (pending limit order)
STOP ORDER
Stop order, also referred to as stop loss order, is an order to buy or sell a stock once the price of the stock reaches a specified price, known as the stop price. When the stop price is reached, a stop order becomes a market order. A buy stop order is entered at a stop price above the current market price.
