Every active investor and trader needs to stay updated with the latest news about the stock market. Missing one key information – a big corporate announcement, new deals/projects, change in management or any scam/fraud allegations about your favorite stock may result in a change in profitability in your portfolio. But how to stay updated with the current happenings and events in the stock market? A simple answer is by reading newspapers.
We all know that reading newspapers is a good habit that can provide a great sense of educational value as well as keeping us updated with the latest happenings around us. A newspaper is basically a periodical publication containing well-written information about current events. Moreover, with the availability of the ‘e-Newspapers’ i.e. online newspapers, accessing these are a lot easier. In this article, we are going to discuss seven best newspapers to read and stay updated about the Stock Market. Here they go:
The daily newspaper Business Standard (also available as an e-paper) is the first preferred choice of serious business readers. It is one of the largest Indian English-language daily edition newspaper published by Business Standard Ltd. The Business Standard provides the latest news about Economy, Finance, Current Affairs, International Management, Personal Finance, etc. You can check out stock prices of India’s leading companies, Sensex, Nifty, Gold, Silver, etc. They also offer an Android App available in the google play store.
Livemint is one of my favorite newspapers to read and stay updated with the stock market. The reason is its clear editorials and nicely designed pages. This newspaper is published by HT Media, a Delhi-based media group that is controlled by the KK Birla family and also publishes Hindustan Times. Livemint provides information about Markets, Companies, Money, Start-ups, Mutual Funds, Investment Queries, Insurance, Technology and more. They also offer e-Paper, you can log-in and get the latest news.
The Hindu Business Line is an Indian business newspaper published by the publishers of the newspaper The Hindu located in Chennai, India. It gives daily market live updates about Sensex and Nifty, information about commodities, Forex, Gold & Silver Science, World, Sports, Real Estate, and also Trending topics in the Market. The e-Newspaper for the Hindu Business Line is also available.
Reuters is the world’s largest international multimedia news. It provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world’s media organizations, and directly to consumers. Here you can get updates about Stocks, Business, Technology, Sports, Entertainment, etc. You can easily subscribe to their newsletters. The Reuters app is available in the play store.
Moneycontrol is one of the most popular websites to read financial news in India. It is owned by E-EIGHTEEN Dot Com Ltd., a subsidiary of the media house TV18. Though it is not exactly a newspaper, Moneycontrol financial portal offers end-of-day stock prices, stores of news (text and videos), analysis, data and tools on investing (across diverse asset classes), the business sector, and the economy. It also provides a few recommended Market Podcasts like ‘‘A morning walk down Dalal Street‘. You can also track the Market using Moneycontrol mobile app.
Originated in 1961, The Economic Times is an Indian daily newspaper headquartered in Mumbai, India in English-language published by Bennett, Coleman & Co. Ltd. They provide the latest news updates on investing, Economy News, Business News, technology, etc. They offer a separate Economic Times Market section for their readers to stay updated to the stock market and financial world. Apart from the newspapers, the Economic Times also provides e-edition for the convenience of the user.
Bloomberg Quint is a multiplatform, Indian business and financial news company. It is a joint venture of Bloomberg News and Quintillion Media. They provide Bloomberg’s global leadership in business & financial news and data with Quintillion Media’s deep expertise in the Indian market and digital news delivery. Its main content is based on high-quality business news, market-moving news, top trends, economy news, international finance news, and compelling perspectives. They also offer market Podcasts.
New Delhi Television, popularly known as NDTV, is an Indian television media company founded in 1988 by Radhika Roy, a journalist. NDTV gives updates like news, videos & photos about Business, Stock, Entertainment, stock talk, Sports, etc. They also have an app that is Faster and Lighter, with features that ensure you get the latest news notifications.
Yahoo! Finance, a part of Yahoo!’s network, provides financial news, data, and commentary including stock quotes, press releases, financial reports, and original content. It provides real-time streaming quotes for many exchanges and provides stock information like their financial statements, latest announcements, updates, etc. Yahoo Finance also offers online tools for personal finance management which are very useful for its readers.
Google Finance is not exactly a publication but a news aggregator. On Google Finance, you can find all the latest financial information about stocks, market news, economy news, and top stories around the world in Finance.
Closing Thoughts
There are hundreds of newspapers available in the market to read and stay updated with the Stock market. However, not all are equally good. Out of all the ten Best Newspapers for stock market India to read, my favorite ones are Livemint, MoneyControl, and Bloomberg Quint. Which one is yours? Comment below to answer. Further, if I missed any popular newspapers that provide genuine information about the stock market, then please do comment below. Cheers!
Swing trading is when investors capitalize on swings in the market by holding on to a security for an extended period of time. Day trading positions last for less than a day while swing trading can last up to a week. It is used to trade numerous securities such as forex, futures, options, and stocks.
Swing trading is beneficial as it provides more opportunities for profits than day trading and quicker rewards than long-term investments. But on the downside, you need to constantly manage trades as you might miss out on opportunities to make a profit if you don’t act quick.
So what exactly is swing trading?
In its simplest form, traders hold on to securities for an extended period of time to earn a profit. This can range from overnight to several weeks. The objective of swing trading is to identify a trend and find swings within that trend to make a profit. Technical analysis can be used to identify these swings and act on them. Both day trading and swing trading have higher risks and costs than typical investments.
Swing trading is often undertaken by individuals and not large institutions as large institutions trade in large volumes, making it harder to enter and exit the market as required. It is a great option for beginner traders as it allows them to gain experience in trading. Losses can be kept minimal with stop-loss techniques and it provides perspective on both short and long-term trading.
Swing trading is beneficial to beginner investors and for those who need more time to make trading decisions. It comes with several advantages such as:
— Versatility- Swing trading is a good option for people who can’t trade during market hours but still want to remain active traders. You can decide the price at which you want to enter and exit the market and place stops so they the stock value doesn’t go below a certain level- there are some trading softwares that even let you place multiple stop-orders in a day. Additionally, swing trading can be used for numerous securities such as bitcoin and standard options.
— Identify opportunities- Swing trading is generally not adopted by large firms as the trader constantly enters and exits the market but this comes with its own benefits. It allows the investor to identify new opportunities in the market. Looking at a financial chart shows you the long-term trend of stock but this is not always protected by support and resistance. By entering and exiting the market on a regular basis, you can identify opportunities in different markets with new trades. This not only allows you to spread your risk but you also have a lot less capital tied up in a single stock.
— Lower losses- Stop losses result in lower losses than long-term trades. A stop loss on a swing trade maybe 100 pips for a 5-hour chart but a stop loss on a chart over a week can be 400 pips or higher. This allows you to take larger positions on long-term trends. You can also place multiple stop losses in a day to protect your stocks against loss.
— You can have a better understanding of the trades- Swing traders are technical traders and have certain signs and signals to show them when a stock is/will not perform well. Therefore this makes it easier for a swing trader to limit the damages before they occur. Long-term traders cannot do this as trade based on the fundamentals of the stock. A swing trader, on the other hand, needs to be patient and take fewer trades.
Disadvantages of a swing trading
Although swing trading has its benefits, it comes with its own trade-offs. Here are a few challenges of swing trading:
— Unpredictable changes- Swing trades can change dramatically overnight, so if the market changes while you are sleeping, you could be up for a surprise the next morning. In certain cases, even a stop loss won’t be able to protect your trade. Trading is risky in itself and entering and exiting the market means that you are risking the money more often. You are likely to face losses every now and then due to this.
— Expert knowledge- While this might not necessarily be a disadvantage, swing trading requires a trader to be knowledgeable in technical analysis. Looking at a chart to find the high and low points is easy but as a swing trader, you need to identify the entry and exit points as well. Learning these skills takes time and effort and a trader would need to master this before they start swing trading.
— Psychology- You need to have a different mindset when it comes to swing trading. You need to be able to think on your feet and be sure of the decisions you make. As a swing trader is more aggressive than a regular trader who only studies the charts. Swing trading does not provide you with the same leverage as day trading.
Stocks that are trending in the market rarely go in a straight line. A stock may go up for several days in a step formation and then gradually come back down. When the stock can be seen moving upward, it is said to be in an uptrend. Bullish traders look for the initial upward trend followed by the reversal of this, called the ‘counter-trend’. This is again followed by an upward trend. You should enter a trade only after the original upward trend has resumed.
Bearish traders
Like upward trends, downward trends also move in a step pattern. A stock could trend downward for a number of days, followed by a few days of upward movement and then back to the downward trend. Traders should enter a bearish swing trade when the stock resumes its downward trend. They can do this with a sell-stop limit order.
Muhurat Trading 2019: First of all, a very happy and prosperous Diwali to you and your family in advance. May this Diwali and the upcoming new years fulfills all the wishes that you wished for. Have a blast!
You might be ready for the Diwali- cleaned your house; bought diyas, candles, sweets & crackers, etc. But are you ready for trading this Diwali?
Don’t be confused. Yes, the stock market will remain closed on Diwali, i.e. 27th October 2019, during the normal stock market trading timings. However, stock exchanges will open for an hour in the evening for trading. This period of trading called ‘Muhurat Trading’ and this tradition has been followed in India since 1979.
As this trading is conducted on the day of Diwali, Muhurat Trading is considered auspicious and any trades conducted in these sixty minutes are believed to bring good fortune and prosperity. Moreover, this mahurat trading period is considered propitious for the upcoming year.
BSE and NSE will organize Muhurat Trading session between 6.15 PM and 7.15 PM. The pre-opening session will be held between 6:00 Pm to 6.08 Pm. Hence a normal trading will be conducted between these 60 minutes.
Pre-Open Session
6:00 to 6:08 PM
Muhurat Trading Session
6:15 to 7:15 PM
Duration
1 Hour
*Note: All trades executed in this Diwali Muhurat trading session would result in settlement obligations
Further, the exchanges will remain closed on October 28 on the occasion of Diwali Balipratipada.
Why Muhurat Trading?
Muhurat trading refers to the trading done on this auspicious day of Diwali. According to Indian tradition, Diwali marks the starting of the new year, and the trading done on this day is considered to bring prosperity and wealth throughout the year.
Further, it’s a very promising time to plan your investment for the upcoming year with your advisors/brokers to achieve your financial goals.
#12 companies with highest share price in India (Updated- October 2019):
Hi Investors. In this post, we are going to discuss the most expensive shares in India i.e. the companies with the highest share price in India. Here, we’ll look at 12 of the costliest shares in India based on the price at which they are trading in the share market.
Note: Please study the companies carefully if you want to invest in any of the stocks mentioned in the list here. A high stock price doesn’t guarantee a fundamentally strong company or a good investment. Let’s get started.
#12 Companies with Highest Share Price in India
1. MRF (Rs 62,896)
Market Capitalisation = Rs 26,628 Cr
Madras Rubber Factory (MRF) is a Tyre manufacturer that produces a wide range of tyres. It specializes in Car & bike tyres, trucks/buses tires etc. MRF has the highest share price in India among all the listed companies on BSE/NSE.
The all-time high share price of MRF is Rs 81,426. The stock is currently trading at a standalone PE of 24.14.
MRF has never split its share and has a face value of Rs 1o. Noticeably, this company was trading at a price of Rs 10,000, in November 2012.
2. Honeywell Automation (Rs 28,564)
Market Capitalisation = Rs 25,250 Cr
Honeywell is a leader in providing integrated automation and software solutions. It has a wide product portfolio in environmental and combustion controls, and sensing and control, etc.
This stock has given a return of over +440% in the last 5 years. It is currently trading at a PE of 66.24.
3. Page Industries (Rs 20,816)
Market Capitalisation = Rs 23,210 Cr
One of the famous company under Page Industries is Jockey (Underwear and inner wears company). Page industries is in readymade apparels (garment) industries. It has turned out to be a multi-bagger stock in the last couple of years and has given a return of over +135% in last 5 years.
Page industries is currently trading at a PE of 61.05.
4. 3M India (Rs 20,610)
Market Capitalisation = Rs 23,227 Cr
3M India has a diversified portfolio of products in dental cement, health care, cleaning, etc. This stock is currently trading at a PE of 75.35.
The parent company of Royal Enfield (Bullet bikes) and Eicher trucks. This is in the automobile sector.
This stock has given a negative return of -35% in the last two years since October 2017. Eicher motor was trading at a price of Rs 2,500 in November 2012 and a high of Rs 31,600 in April 2018. The current PE of Eicher Motors is 25.24.
Shree Cement is an Indian cement manufacturer headquartered in Kolkata. It is the biggest cement maker in northern India. Shree cements is currently trading at a PE of 54.85. (52-week high- Rs 22,399)
7. Nestle India (Rs 14,351)
Market Capitalisation = Rs 138,377 Cr
Nestle India is in the food processing industry with a wide variety of products like Maggi, Kit-Kat, Nescafe, Every day, etc. This stock is currently trading at a PE of 81.93.
8. Bosch (Rs 14,128)
Market Capitalisation = Rs 41,671 Cr
Bosch ranks eighth in the list of companies with highest share price in India. It is a part of the German multinational company Robert Bosch (or just Bosch), headquartered in Germany.
Bosch belongs to the automobile ancillaries industry and currently trading at a PE of 27.73 (52-week high- Rs 20,500).
9. Bombay Oxygen (Rs 13,247)
Market Capitalisation = Rs 198 Cr
This is one of the lesser-known companies on the list of companies with highest share price in India. Incorporated in 1960, Bombay Oxygen is an Industrial gases company.
The stock is currently trading at a standalone PE of 25.28 with a 52-weeks high price of Rs 26,995 in October 2018.
P & G is in the personal care industry with products in hygiene and health care. Few famous products of Procter & Gamble group are Ariel, Duracell, Gillette, Head & Shoulder, etc.
This stock is currently trading at a PE of 89.71.
Quick Tip: If you are new to the share market, you’ll need to open your demat account to start investing/trading. We’ll highly recommend opening an account with Zerodha, No 1 stockbroker in India. Here’s a detailed post on how to open Zerodha account step-by-step.
11. Abbott India (Rs 10,949)
Market Capitalisation = Rs 23,267 Cr
Headquartered in Mumbai, Abbott India Limited, a publicly listed company and a subsidiary of Abbott Laboratories, takes pride in offering high-quality trusted medicines in multiple therapeutic categories such as women’s health, gastroenterology, cardiology, metabolic disorders, and primary care.
It is currently trading at a PE of 47.99.
12. Tasty Bite Eatables (Rs 10,104)
Market Capitalisation = Rs 2,592 Cr
This company operates in the food processing industry with products like tasty bite rice, noodles, entrees, etc. This stock is currently trading at a PE of 81.05.
That’s all for this post on ‘#12 companies with the highest share price in India’. Most of the companies on this list are trading at a high PE. If you want to buy any one of them, then please study the company carefully. Just being the costliest shares in India doesn’t make them a good pick for investment. Moreover, past performance does not guarantee future returns.
Disclaimer: The list of 12 Companies with Highest Share Price in India is till date October 2019. The stock market is dynamic and the stock prices will change in the future, which may change the list or the order of the companies listed here.
Further, do comment below which other stocks can find a place in this list of companies with highest share price in India by next year (October 2020)? And which ones will be thrown out of the list, according to you? Happy Investing!
Hi, I am Kritesh, an NSE Certified Equity Fundamental Analyst and an electrical engineer (NIT Warangal) by qualification. I have a passion for stocks and have spent my last 4+ years learning, investing and educating people about stock market investing. And so, I am delighted to share my learnings with you. #HappyInvesting
7 Best Stock Market Apps that makes Stock Research 10x Easier– Now a day, if you are a stock market trader, then it’s essential for you to stay updated with every minute market movements. The modern stock market traders keep tabs on rising and fall of the stocks on daily basis and sometimes that too hourly.
The high-speed internet and handy mobile apps have made the life of traders simple, faster and efficient. These financial apps help the traders to stay informed and ready all the time.
From checking the real-time streaming market price of the stock, making a virtual portfolio, drawing stocks charts, following market trends to tracking your portfolio; everything is now accessible from your smartphone or tablet.
Therefore, today I am going to present you the 7 Best Stock Market Apps that will make your stock research easier in India. Moreover, all the apps listed here are free. So be with me for the next 5-8 minutes to learn best stock market apps for Indian stock research.
7 Best Stock Market Apps –
1. MoneyControl
Play store rating: 4.0/5 Stars (308k Reviews)
Downloads: +10 Million
Available on: Android, IoS, Windows
This is my personal favorite mobile app for stock market news and updates. If you are planning to keep only one stock market app on your smartphone, then I will highly recommend you to have this one. Money control app is simple, yet have tons of information and news.
You can track the latest updates on Indian and Global financial markets on your smartphone with the Moneycontrol App. It covers multiple assets from BSE, NSE, MCX and NCDEX exchanges, so you can track Indices (Sensex & Nifty), Stocks, Futures, Options, Mutual Funds, Commodities and Currencies with ease.
Features:
Ease of Use: Easy navigation to all financial data, portfolio, watchlist and message board. Single search bar with voice search for stocks, indices, mutual funds, commodities, news, etc
Latest Market Data: Latest quotes of stocks, F&O, mutual funds, commodities and currencies from BSE, NSE, MCX, and NCDEX
News: All-day coverage of news related to markets, business and economy; plus interviews of senior management
Portfolio: Easy monitoring your portfolio across Stocks, Mutual Funds, ULIPs, and Bullion. Timely updates on performance of your portfolio, and news & alerts relating to stocks you hold
Personalized Watchlist: Adding your favorite stocks, mutual funds, commodities, futures, and currencies to monitor. Get timely alerts in form of news and corporate action
Message Board: Follow your favorite topics and the top borders to get recommendations. Engage and participate in conversations relating to your portfolio or interest
Play store rating: 4.6/5 Stars (24k Reviews)
Downloads: +1 Million
Available on: Android, iOS
Stock Edge helps Indian Stock market traders and investors do their own research and take better decisions by providing them with end-of-day analytics and visualizations and alerts.
Features:
Daily Updates Section for filtered major market tracking with News, NSE & BSE Corporate Announcements, Forthcoming events, & Corporate Actions and more.
FII/ FPI & DII Cash and Derivatives with strong historical data visualization Daily, Monthly & Yearly.
Opportunity Scans: Price Scans, Last week high/ low, Last Month high/ low, 52 weeks high/low, 3 days price behavior etc
Track what Big Indian Investors are doing. Use MyInvestorGroup section to create your own group of Investors with their multiple names/entities etc
Sector Research: Sector List, Industries in a sector, Companies in a sector/Industry, Price Movement of last 30 days presented in a simple graph, Gainers, Losers etc.
Play store rating: 4.1/5 Stars (26k Stars)
Downloads: +1 Million
Available on: Android, IoS, Windows
This is another of the best stock market apps. I regularly use ET Markets app for reading market news and updates as they provide the best latest news.
Features:
To track BSE Sensex, NSE Nifty charts live and get share prices with advanced technical charting.
Follow stock quotes real time, get tips on intraday trading, stock futures, commodities, forex market, ETFs on the go.
One-stop destination for mutual fund news, NAVs, portfolio updates, fund analysis, SIP calculator
Simple swipe to build, manage and access your portfolio; get customized news, analysis and data of the Indian stock market
To create your watchlist and track them regularly
Get analyses/expert views delivered to you, participate in discussions/conversations through comments
Play store rating: 4.2/5 Stars (163k reviews)
Downloads: +5 Million
Available on: Android, IoS, Windows
First of all, after downloading this app, you need to change the settings. In the region settings, select ‘India (English)’ for getting the updates about the Indian stock market. The simple yet dynamic user interface makes it one of the best stock market apps for stock research.
Features:
Follow the stocks you care about most and get personalized news and alerts.
Access real-time stock information and investment updates to stay on top of the market.
Add stocks to watchlists to get real-time stock quotes and personalized news
Track the performance of your personal portfolio.
Find all the financial information you need with sleek, intuitive navigation
Go beyond stocks and track currencies, bonds, commodities, equities, world indices, futures, and more
Compare stocks with interactive full-screen charts
Play store rating: 3.4/5 Stars (14k Reviews)
Downloads: +1 Million
Available on: Android, IoS, Windows
Another one of the best stock market apps in India. This app provides the freedom to trade hassle free anywhere and at any time. After downloading the app, you can get the User ID and Password by your NSE registered Trading Member. Further, you can call 1800 266 0052 (Toll-Free) for assistance
Features:
Real-time streaming quotes, with a simple and user-friendly interface for all types of users.
Comprehensive trading and market monitoring platform.
Play store rating: 4.0/5 Stars (1k Reviews)
Downloads: +100,000
Available on: Android, IoS
The simple navigation and interactive charts with zoom features make it one of the best stock market apps. It is a great app for technical analysis on your smartphone or tablet.
Features:
Live intraday candlestick chart updates (Stocks/FO) (1-min or 5-min, depending on the subscription type)
Live NSE Stocks/F&O updates.
Unlimited watch-lists.
Technical indicators like (EMA, SMA, MACD, RSI, STOCHASTICS, VOLUME, OPEN INTEREST, ADX, BOLLINGER-BANDS)
Play store rating: 3.9/5 Stars (1k Reviews)
Downloads: +100,000
Available on: Android
This is a new yet powerful app for stock market research. Market Mojo is great for the fundamental analysis of stocks. It offers pre-analyzed information on all stocks, all financials, all news, all price movement, all broker recommendations, all technicals and everything that matters in the Indian stock markets.
Features:
The Mojo Quality rank reflects the company’s long-term performance vs its peers.
Its Valuation determines how the stock is valued at its current price
The current financial trend indicates if the company is currently on a growth path and its ability to generate profits.
The Portfolio Analyser evaluates every hidden opportunity and risk in the portfolio and tells the investor what he should be doing rather than what he should be just tracking. Every portfolio goes through our test of seven parameters-Returns, Risk, Diversification, Liquidity, Quality, Valuation & Financial Trend
Play store rating: 4.6/5 Stars
Available on: Android
Trade brains is a FREE financial education app focused on teaching stock market investing and personal finance to the DIY (do-it-yourself) Investors. Trade Brains app will guide you on how to invest in the Indian stock market with simple, easy-to-understand and original content.
Features:
Pocket guide for stock market Investment
Step-by-step stock investing lessons.
Easy to understand the contents of various investment concepts and strategies.
Best Investment quotes.
Any content can be shared with a simple click.
Bookmark your favorite content to read/revise later
Quick note: New to stocks and confused where to start? Here’s an amazing online course for the newbie investors: INVESTING IN STOCKS- THE COMPLETE COURSE FOR BEGINNERS. Enroll now and start your stock market journey today!
That’s all. I hope this blog post ‘7 Best Stock Market Apps that makes Stock Research 10x Easier’ is useful to the readers. If I missed any amazing app that you believe should be mentioned here, feel free to comment below. Else, please comment below which Stock market app is your favorite? Happy Investing!
Hi, I am Kritesh, an NSE Certified Equity Fundamental Analyst and an electrical engineer (NIT Warangal) by qualification. I have a passion for stocks and have spent my last 4+ years learning, investing and educating people about stock market investing. And so, I am delighted to share my learnings with you. #HappyInvesting
People who invest in stock must be familiar with the New York Stock Exchange which is top of the list of Largest Stock Exchanges in the world. Before we start this post, let us brief a bit about what the stock exchange is.
A Stock Exchange is an organization that anchor formulated market for dealing in securities, derivatives, commodities, and other financial equipment. It is one of the powerful ingredients of the financial market. Here, buyers and sellers club together to carry out transactions. And, securities are bought and sold out according to clear-cut rules and regulations.
Stock exchange furnishes the required edifice and framework to the brokers and members who deal with asset classes. It also governs the transaction activities to certify free and fair trade. The most engaging aspect is that the Stock exchanges are also deemed as the financial measures of an economy where the industrial development and firmness is mirrored in the index. Here is the list of the ten largest Stock Exchange in the world.
10 Largest Stock Exchanges in the World
1) New York Stock Exchange:
The New York Stock Exchange (NYSE) is first on the list of the largest stock exchange in the world and is a highly esteemed stock exchange in the USA which is situated at 11, Wall Street, New York City. It was established on May 17, 1792, and consists of 2,400 listed companies. It is the world’s largest stock exchange and has a market capitalization of US$ 30.1 trillion.
Back to the back of mergers has aided the New York Stock Exchange to gain its colossal size and global footprint. The blue-chip companies which are listed under NYSE are Berkshire Hathaway Inc, Coca-Cola, Walt Disney Company, Mc Donald’s Corporation, etc.
2) NASDAQ:
Second on the list of largest stock exchange in the world is NASDAQ which was primarily an abbreviation and stage for the National Association of Securities Dealers Automated Quotations. It is an American stock exchange and is headquartered at 151 W, 42nd Street, New York City.
The NASDAQ commenced its business on February 8, 1971, and is sighted as the world’s first electronically traded stock market.NASDAQ has a combined market capitalization of $10.8 trillion and is ranked second in the list of largest stock exchanges. It consists of more than 3,000 stocks listed under it and comprises of the world’s humongous tech giants such as Apple, Microsoft, Google, Facebook, Amazon, Tesla, and Intel.
The Tokyo Stock Exchange (TSE) which is also known as Tōshō is located in Tokyo, Japan. It was validated on May 15, 1878, and is also the third-largest stock exchange in the world.
TSE has close to 3,500 listed companies with a syndicated market capitalization surpassing the US$ 5.67 trillion.The TSE’s metric indicator is Nikkei 225 and it is home to some of the voluminous Japanese giants with international exposure, including Toyota, Suzuki, Honda, and Mitsubishi and Sony.
4) Shanghai Stock Exchange:
The Shanghai Stock Exchange (SSE) is located in the city of Shanghai, China and is one of the two stock exchanges plying autonomously in the People’s Republic of China. Although its foundation traces back to 1866, it was adjourned after the Chinese Revolution in 1949. However, The Shanghai Exchange in its contemporary outlook was laid down in 1990.
Currently, Shanghai SSE is the world’s fourth-largest stock exchange with a combined market capitalization f US$ 5.01 trillion. The most interesting fact is that the absolute market cap of the SSE is constructed out of formerly state-run insurance companies & commercial banks.
5)Honk Kong Stock Exchange:
The Hong Kong Stock Exchange (SEHK) is located in Hong Kong and is the world’s fifth-largest stock exchange on the basis of market capitalization. It consists of 2,315 listed companies with a wholesome market capitalization of HK$29.9 trillion.
Its origin can be traced back to the mid-1800s and since then it has gone through a series of mergers and agglomeration with other exchanges. Some of the gigantic and eminent companies listed under the Hong Kong Stock Exchange are China Mobile, and HSBC Holdings & Petro China.
The London Stock Exchange (LSE) is based in London and is the sixth-largest stock exchange in the world. It was established in 1571 and is the oldest stock exchange in the world. It has more than 3,000 listed companies with a combined market capitalization of $4.59 trillion.
LSE is also the maiden source of benchmark prices, equity-market liquidity and market data in Europe. Some of the massive companies listed under the LSE are Barclays, British Petroleum and GlaxoSmithKline.
7)EURONEXT:
The Word EURONEXT is an acronym for European New Exchange Technology and has its corporate address at La Défense in Greater Paris.EURONEXT was established in 2000 by the consolidation of the exchanges in Amsterdam, Paris, and Brussels.
Over the years, it amalgamated with multiple exchanges, most particularly the New York Stock Exchange. It steers financial markets in Amsterdam, London, Brussels, Lisbon, Oslo, Dublin, and Paris. It has around 1,500 listed companies leading to a market capitalization worth €4.1 trillion. EURONEXT provided the segments which are equities, warrants, exchange-traded, bonds, commodities, funds and certificates, derivatives, indices, and foreign exchange trading platform.
8)Shenzen Stock Exchange:
The Shenzhen Stock Exchange (SZSE) is oriented in the city of Shenzhen, China and was founded on December 1, 1990. It is the 8th largest stock exchange in the world and has approximately 1,300 listed companies with a combined market capitalization of $3.92 trillion.
Most of the companies under this SZSE are corporate firms of companies in which the Government Of China has a controlling interest.The Shenzhen Stock Exchange had introduced the “ChiNext Board” in 2009 comprising of high-tech & high-growth startups, quite similar to NASDAQ.
9) TORONTO STOCK EXCHANGE:
The Toronto Stock Exchange (TSX) is situated in Toronto, Canada. It was introduced in 1852 and is held and wielded as a subsidiary of the TMX Group. It is the ninth-largest exchange in the world and has 2,207 listed companies with a combined market capitalization of $2.3 trillion.
The financial instruments include equities, investment trusts, exchange-traded funds, bonds, commodities, futures, options, and other products. It is also to be noted that mining and oil and gas companies are listed in more numbers under the Toronto Stock Exchange compared to other stock exchanges around the world.
10) BOMBAY STOCK EXCHANGE:
The Bombay Stock Exchange (BSE) is an Indian stock exchange located at the high-wheeled Dalal Street in Mumbai. It was established in 1875 and is Asia’s first-ever stock exchange. It is also the world’s 10th largest stock exchange with a total market capitalization of more than $2.2 trillion.
The BSE has approximately 5,000 listed companies and has assisted in the growth of the country’s corporate sector and financial markets. Securities listed under BSE comprises of stocks, futures, options, index futures, index options, and weekly options. However, the BSE’s benchmark is measured by the Sensex which nearly covers all the sectors of the Indian economy.
Do you want to learn how to make money from the stock market? However, you find college textbooks or investing novels too boring to read? No need to worry. There’s another fun, entertaining, yet educational approach to learn the financial world without going through 800 pages of financial books. Enter stock market movies.
If you are not an enthusiastic book reader, just try to watch a few amazing movies or documentaries based on the stock market and it will help you understand all about the financial markets. You can learn and explore a lot about stocks just by sitting on your couch and watching these movies on your laptop.
In this post, we are going to discuss ten must-watch stock market movies that you can watch this weekend to learn finance.
Top 10 Stock Market Movies:
Here is a snippet from ten best stock market movies which every investor should watch.
The big short ranks first in this list of top stock market movies to watch. This movie is based on a non-fiction book written by Micheal Lewis directed by Adam Mckay. It’s an Oscar-winning film in 2015 and 37 other wins. It depicts a dramatic tale of events that led to the financial crisis. This movie combines goofy comedy with a financial crisis where eight million people lose their jobs and become homeless.
In 1987, Oliver Stone directed this American dramatic film with stars Micheal Doughler, Charlie Sheen and Daryl Hannah. The movie revolves around a young stockbroker involved with the wealthy corporate raider. This film allowed all the financial wheeling and dealing to seem convincing. It gives us an alternative reality about stocks, which may crash down on all of us. The director made this film as a tribute to his father.
John Landis directed “Trading Places” with a lead role played by Eddie Murphy.
The movie tells about the ups and downs of Trading in a Comedy genre giving the basics of socio-economics and class structure in America. The movie also depicts many stereotypical views of money.
This movie centers Seth Davis who finds a job as a stockbroker for a suburban investment firm to keep up to his father’s high standards. But the job might not be as legitimate at first appears. He is a college drop out with a serious desire to achieve success and wealth. This movie is directed by Ben Younger, released on 18th February 2000.
A financial thriller movie directed by Meera Menon. The movie depicts Naomi Bishop, an investment banker, struggling to get on top. She is being watched by a prosecutor who suspects her of being corrupt. So she must untangle a web of corruption in this story while it becomes, even more, worse with a betrayal by a trusted colleague to ruin everything. She faces professional setbacks including client losing confidence.
This is my favorite stock market movie of all time. It’s based on a true story of Jordan Belfort who spent 22 months in prison for defrauding investors in massive security scams. It discusses the nature of wall street brokers with a smooth-talking and easy-going Boss. He devises new ways to cover his tracks and watch his fortune grow.
This movie is written by Andrew Ross Sorkin, directed by Curtis Hanson and released in 2011. It’s about how certain corporations particularly financial institutions are so large and so interconnected that if they fail it would be disastrous to the greater economic system. This film also describes a few clips about the mortgage industry crisis.
A thought-provoking dramatic movie directed by J.C.Chandor. It’s a fictional firm and not a real wall street firm. This movie follows people about investment banks over a 24 hour period of time before the 2008 financial crisis. It reveals how large financial institutions operate and the motivations of people who work within them. This was a thirty-five million budget movie nationwide.
A Documentary on the financial history of the world. It shows why our modern societies are structured and behave as they do. The history of money, credit, and banking can be depicted in this documentary. It is a six-part TV documentary written by the author Niall Ferguson in 2008 showing why stock markets produce bubbles, bursts, and Globalization of the western economy.
This is a true story based on “No one would listen “ by Harry Markopolos. It’s a nonfiction narrative documentary film written and directed by Jeff Prosserman. He spent 10 years trying to get US Securities and exchange commission on their investigative proof of Bernie Madoff’s Ponzi Scheme which scammed an estimated 18billion including fake returns.
Bonus: Infographic on Top 10 Stock Market Movies
Note: Feel free to share/embed the above infographic. Just give the credits to Trade Brains.
That’s all for this post. In case, we missed any amazing stock market movie, please comment below. Further, also mention which one is your favorite stock market movie!
10 Best Dividend Stocks in India (Updated: May 2019)–
“Do you know the only thing that gives me pleasure? It’s to see my dividends coming in.” – John D Rockefeller
Whenever a retail investor, like you and me, buys a stock, then their main aim is to earn money through their investment. There are two methods by which anyone can earn money by investing in stocks. They are:
Capital Appreciation
Dividends
The first one, capital appreciation, is quite famous among investors. Everyone knows this secret to earn in the stock market. Buy low and sell high. The difference is capital appreciation or profit.
Suppose you bought a stock at Rs 100 and two years hence, the price of the stock has increased to Rs 240. Here, the capital appreciation is Rs 240- Rs 100 = Rs 140. In short, you made a profit of Rs 140 or 140%.
Almost everyone who enters the market knows this method of earning by stocks. It can also be concluded that most people enter the market hoping that their investment will be doubled or quadrupled and will make them a millionaire one day through capital appreciation.
Now, let us move to the second method of earning through stocks- DIVIDENDS.
Whenever a company is for profit, it can use this profit amount in different ways. First, it can use the profit amount in its expansion like acquiring a new property, starting a new venture/project, etc. Second, it can distribute the profit among its owners and shareholders. Third and final, it can distribute some portion of the profit to the shareholders and use the remaining in carrying out its expansion work.
This amount distributed among the shareholders is called DIVIDEND.
What is a dividend?
“A dividend is a distribution of a portion of a company’s earnings, decided by the board of directors, to a class of its shareholders. Dividends can be issued as cash payments, as shares of stock, or other property.”
Typically, most companies give dividends two times a year, namely– Interim dividend and final dividend. However, this is not a hard and fast rule. Few companies, like MRF, gives dividends three times a year.
Suppose you are a long-term investor. You have invested in the stocks of a company for 15-20 years. Now, if the company does not give any dividends, there is no way for you to make money until you sell the stocks.
On the other hand, if the company gives a regular dividend, say 4% a year, then you can plan your expenses accordingly.
A regular dividend is a sign of a healthy company.
A company, which has given a consistent (moreover growing) dividend for an interval of over 10 consecutive years, can be considered a financially strong company. On the contrary, the companies that give irregular dividends (or skips dividends in harsh economic conditions) can not be considered as a financially sound company.
If you want to learn stocks from scratch, I will highly recommend you to read this book: ONE UP ON THE WALL STREET by Peter Lynch- best selling book for stock market beginners.
Big dividend yield can be an incredibly attractive feature of stock for the people planning for retirement.
Now that we have understood the meaning of dividends, let us learn a few of the important financial terms that are frequently used while talking about dividends.
Must know financial terms regarding Dividends
1. Dividend yield: It is the portion of the company earnings decided by the company to distribute to the shareholders. A stock’s dividend yield is calculated as the company’s annual cash dividend per share divided by the current price of the stock and is expressed in annual percentage. It can be distributed quarterly or annually basis and they can issue in the form of cash or stocks.
Dividend Yield = (Dividend per Share) / (Price per Share)*100
For Example, If the share price of a company is Rs 100 and it is giving a dividend of Rs 10, then the dividend yield will be 10%. It totally depends on the investor whether he wants to invest in a high or low dividend yielding company.
2. Dividend %:This is the ratio of the dividend given by the company to the face value of the share.
3. Payout ratio: It is the proportion of earnings paid out as dividends to shareholders, typically expressed as a percentage. The Payout Ratio is calculated as follows:
Payout Ratio = Dividends per Share (DPS) / Earnings per Share (EPS)
As a thumb rule, avoid investing in companies with very high dividend payout ratio. In other words, be cautionary if the payout ratio is greater than 70%. (Also read: The Fundamentals of Stock Market- Must Know Terms)
To move further now that we have understood the basics behind the dividends, here is the list of 10 Best Dividend Stocks in India.
10 Best Dividend Stocks in India-
In addition, if you are interested to know about other high dividend stocks, then you can find it here: BSE TOP DIVIDEND STOCKS
The growing companies give less dividend yield to their shareholders as they use the profit amount in their expansion.
On the other hand, the Blue Chip stocks, which are large and established company and has already reached a saturation point, gives good regular dividends. Further, the public sector companies are known for giving good dividends. Industries like Oil and petroleum companies, in general, give decent dividends.
Here are few of such stocks with high current dividend yields which are also worth investing:
That’s all. I hope this post about ‘10 Best Dividend Stocks in India That Will Make Your Portfolio Rich’ is useful to the readers. Further, I will highly recommend not investing in stocks based on just high dividend yield.
Hi, I am Kritesh, an NSE Certified Equity Fundamental Analyst and an electrical engineer (NIT Warangal) by qualification. I have a passion for stocks and have spent my last 4+ years learning, investing and educating people about stock market investing. And so, I am delighted to share my learnings with you. #HappyInvesting
A prominent question many people have about investing in stocks is, “Does the purchase price matter?” or “Should I value a stock before purchasing it”?
A lot of financial theory argues that you shouldn’t. They say, markets are always efficient in pricing securities and you should rather worry about decreasing frictional costs like brokerage charges, transaction charges, churn costs and so on.
But Mr. Charlie Munger, the business partner of the world’s richest investor Mr. Warren Buffett, has a different answer:
“It was always clear to me that the stock market couldn’t be perfectly efficient, because, as a teenager, I’d been to the racetrack in Omaha where they had the pari-mutuel system. And it was quite obvious to me that if the ‘house take’, the croupier’s take, was seventeen percent, some people consistently lost a lot less than seventeen percent of all their bets, and other people consistently lost more than seventeen percent of all their bets.
So the pari-mutuel system in Omaha had no perfect efficiency. And so I didn’t accept the argument that the stock market was always perfectly efficient in creating rational prices. The stock market is the same way – except that the house handle is so much lower.
If you take transaction costs – the spread between the bid and the ask plus the commissions – and if you don’t trade too actively, you’re talking about fairly low transaction costs. So that, with enough fanaticism and enough discipline, some of the shrewd people are going to get way better results than average in the nature of things.
It is not a bit easy…But some people will have an advantage. And in a fairly low transaction cost operation, they will get better than average results in stock picking. To us, investing is the equivalent of going out and betting against the pari-mutuel system. We look for a horse with one chance in two of winning and which pays you three to one. You’re looking for a mispriced gamble. That’s what investing is. And you have to know enough to know whether the gamble is mispriced. That’s value investing.”
Let’s say that you are about to bet $100 on a Horse Race. A total of ten horses are participating in the race and you are given the following statistics:
You are told that 100 people have laid down their bets (Let’s call them the ‘Horse Market’) and the total pool of bets is $4,050. Indirectly, you can assess how these 100 people have determined the probability of winning, or ‘Odds’ of winning, for each of these horses. In fact, Horse #6 seems to be an overwhelming favorite, with $1,700 bet for the horse.
But before blindly betting on Horse #6, you need to understand the most important thing about Parimutuel Betting. If Horse #6 indeed wins, everyone who bet on Horse #6 will get $4,050 i.e. Everyone will make roughly 2 times of their bet amount (For convenience, let’s just say the remaining 0.38 times is participation fee). Is that good?
Hold your horses (Pun intended)!
If you bet on Horse #5 or Horse #9 instead, you can make 81 times the money, instead of the paltry 2 times. Well, well, now is this a better bet? Logically speaking, these horses have had a very little bet on them because they may be poor to begin with. The 100 gamblers already know this. That’s why only 1-2 of them have placed bets for these horses.
Wait, this is confusing. Which horse should I bet on now? Let’s recount the statement made by Mr. Charlie Munger:
“We look for a horse with one chance in two of winning and which pays you three to one. You’re looking for a mispriced gamble.”
A mispriced gamble. That’s where the trick lies. To summarize Mr. Munger’s thought process:
You shouldn’t bet blindly on Horse #6, because you will only make only 2 times the money, the lowest reward of the lot. Even when Horse #6 can be deemed the healthiest horse with the most skilled jockey, the payout is simply too low.
You shouldn’t bet blindly on Horses #5 or #9, even though they have an astronomical payout of 81 times. It is more likely that Horses #5 or #9 could be sick/weak or their jockeys inexperienced.
The sweet spot, therefore, is in a bet where you think there’s mispricing i.e. A bet where the ‘Odds’ have been miscalculated by the Horse Market people. Take Horse #1 for instance. The Odds here are 8:1 i.e. The Horse Market people think there’s only a 12.50% (1/8) Probability of this horse winning. If you believe that these Odds are somehow way wrong i.e. If you believe that this horse actually has a 25% (1/4) Probability of winning, then you should consider betting on this one. Of course, you should repeat this exercise for all the horses and figure out which one has the most mispriced Odds and bet on that one.
Sounds simple enough? Horse Betting is decidedly more complex than this. However, it proves to be an interesting lesson in investing. This system of Parimutuel Betting, Mr. Munger argues, also applies to the Stock Market. I would personally visualize it like this:
To put it in a words, then:
You shouldn’t invest blindly in the well-known, excellent company. Although these type of companies have the lowest probability of making a Capital Loss (i.e. Chance of not achieving the Average Returns) over the long term, they also have a low, 15% returns over the long term. Put together, they have an Expected Returns of 12%, which is neither too high, nor too low.
You shouldn’t invest blindly in the unknown, terrible company. Although these type of companies can become potential ‘multi-baggers’ over the long term, clocking a CAGR of 23%, they also come with a high 50% risk of a potential Capital Loss. Put together, they have an Expected Returns of 11.50%, the lowest of the lot.
The sweet spot, therefore, could be in the lesser-known, mediocre companies. These type of companies offer a decent 18% CAGR over the long term and also come with a moderate, 30% Capital Loss probability. Put together, they have an Expected Returns of 12.60%, the highest of the lot.
Of course, this is just an example. There are thousands of Stocks listed around the world and there might very well be numerous permutations and combinations of this in action at any given time. Instead of the 100 people from our horse betting example, the Stock Market consists of millions of people. They are pricing the odds for a stock every moment a trade is executed. It is an investor’s job to figure out the most mispriced bet and pick it up.
Just remember. You don’t make the most money-per-risk-taken by betting on the most favorite gamble. And you don’t make the most money-per-risk-taken by betting on the least favorite gamble, either. You make the most money-per-risk-taken by betting on the gamble where the odds are highly mispriced.
That’s it for today! I’ve used the word ‘Intrinsic Value’ several times in this post, without really letting on much what it is supposed to be. Think about what it means. Let’s explore this more in ‘Equity Valuation 102’, the next post.
I’m the quintessential geek and a strong INTP-A. Saying ‘I am passionate about investing’ would be an understatement. I have been investing my own and my family’s money in the Indian markets since 2016. I’m also a voracious reader and listener of topics ranging from cattle rearing to particle physics. When I am not busy investing or reading, I blog about Valuations and Markets at Valuation in Motion. I believe that finance is as simple as knowing where your last dime went. And I hope to show you how.
Most of the Indian investing population have heard of only two stock exchanges in India- Bombay stock exchange (BSE) and National stock exchange (NSE).However, the list of stock exchanges in India is bigger than just two.
Apart from BSE and NSE, few of the other popular stock exchanges in India are Calcutta stock exchange, Magadh stock exchange, Metropolitan stock exchange of India etc.
In this post, we are going to highlight the major stock exchanges in India which are registered with the Securities and exchange board of India (SEBI) and currently active. We’ll also share a list of different commodity derivative exchanges in India.
Here are the topics that we’ll discuss today:
Table of Content:
What is a stock exchange?
Two biggest stock exchanges in India
Bombay Stock Exchange
National Stock Exchange
Difference between stock exchange and commodity exchange
The complete list of stock exchanges in India
List of commodity derivative exchanges in India.
Final Thoughts
1. What is a Stock Exchange?
Before we dive deep into stock and commodity exchange, first of all, let’s understand what is an exchange.
An exchange is an organization or association which hosts a market where stocks, bonds, futures and options, commodities, etc are traded. Here, buyers and sellers come together to trade the financial instruments during the specific hours of business days. (Also read: Stock market timings in India).
A stock exchange is a facility where stocks are traded. Please note that stock exchanges do not own the stocks (similar to the vegetable market where the market doesn’t own the vegetables but connects the buyers and sellers of vegetables at a location).
To trade in a stock exchange, the companies must be listed there. The exchange imposes rules and regulations on the firms & brokers for efficient trading and provides the facility for the issue and redemption of securities. (Also read: How does stock market work?)
Those companies which are not listed on the stock exchanges are traded over the counter (OTC). These are the smaller, riskier and less liquid companies. Generally, they do not meet the requirements of getting listed on the stock exchanges and hence trade over the counter.
2. Two Popular stock exchanges in India
Now, let us first discuss the two of the largest stock largest exchanges in India- Bombay stock exchange and national stock exchange.
Bombay Stock Exchange:
Bombay stock exchange (BSE) is an Indian stock exchange located at Dalal Street, Mumbai, Maharashtra.
It was established in 1875 and is Asia’s oldest stock exchange.
The BSE is the world’s 11th largest stock exchange with an overall market capitalization of $1.43 Trillion as of March 2016.
More than 5500 companies are publicly listed on the BSE.
National Stock Exchange
The National Stock Exchange (NSE) is the leading stock exchange of India, located in Mumbai, Maharashtra, India. It was started to end the monopoly of the Bombay stock exchange in the Indian market.
NSE was established in 1992 as the first demutualized electronic exchange in the country.
It was the first exchange in the country to provide a modern, fully automated screen-based electronic trading system which offered the easy trading facility to the investors spread across the length and breadth of the country.
NSE has a total market capitalization of more than US$1.41 trillion, making it the world’s 12th-largest stock exchange as of March 2016.
NSE’s index, the NIFTY 50, is used extensively by investors in India and around the world as a barometer of the Indian capital markets.
3. Difference between stock and commodities exchanges.
The stock exchange is a place where the piece of ownership in businesses (i.e. stocks) are bought and sold among the traders. On the other hand, a commodity exchange is a market where goods that come from the earth like gold, silver, corn, soybeans, oil, cattle, coffee, pork etc are traded among the buyers and sellers.
An important difference between both these markets is that commodity exchanges are not just for investment purpose, but also for the business purpose to carry out the operations.
4. The complete list of stock exchanges in India
Here is the list of existing stock exchanges in India as of October 2018.
India International Exchange IFSC Limited, 101, First Floor, Hiranandani Signature Tower, GIFT City IFSC – 382355, Gujarat, India.Website :http://www.indiainx.com/
Dec 28, 2018
4
Magadh Stock Exchange Ltd.
“SEBI vide order dated September 3, 2007 refused to renew the recognition granted to Magadh Stock Exchange Ltd.”
NSE IFSC LIMITED, Unit No. 46 – 53, 1st Floor, GIFT Aspire One Business Centre, Block 12, Road 1-D – Zone 1, GIFT SEZ, Gandhinagar 382355. Website :https://www.nseifsc.com/
May 28, 2019
Note:The Hyderabad Securities and Enterprises Ltd (erstwhile Hyderabad Stock Exchange), Coimbatore Stock Exchange Ltd, Saurashtra Kutch Stock Exchange Ltd ,Mangalore Stock Exchange, Inter-Connected Stock Exchange of India Ltd, Cochin Stock Exchange Ltd, Bangalore Stock Exchange Ltd , Ludhiana Stock exchange Ltd, Gauhati Stock Exchange Ltd, Bhubaneswar Stock Exchange Ltd, Jaipur Stock Exchange Ltd, OTC Exchange of India , Pune Stock Exchange Ltd, Madras Stock Exchange Ltd, U.P.Stock Exchange Ltd, Madhya Pradesh Stock Exchange Ltd, Vadodara Stock Exchange Ltd, Delhi Stock Exchange Ltd and Ahmedabad Stock Exchange Ltd have been granted exit by SEBI vide orders dated January 25, 2013, April 3, 2013, April 5, 2013, March 3, 2014, December 08, 2014, December 23, 2014, December 26, 2014, December 30, 2014, January 27, 2015, February 09, 2015, March 23, 2015, March 31, 2015 ,April 13, 2015, May 14, 2015, June 09, 2015, November 09, 2015, January 23, 2017 and April 02, 2018 respectively.
Note:(#) Pursuant to Section 131 of Finance Act, 2015 and Central Government notification F.No. 1/9/SM/2015 dated 28th August, 2015 all recognized associations (Commodity derivatives exchanges) under the Forward Contracts (Regulation) Act, 1952 (FCRA) as on September 28, 2015 are deemed to be recognized stock Exchanges under the Securities Contracts (Regulation) Act, 1956 (SCRA).
The stock exchange is a place where buyers meet the sellers to trade the securities. Two large and popular stock exchanges in India are National stock exchange (NSE) and Bombay stock exchange (BSE).
To get listed on the stock exchange, the companies must meet the basic requirements and guidelines. Further, over the counter (OTC) is a place where unlisted stocks can be bought or sold.
Originally coined by Jim Cramer of MSNBC, ‘FANG’ is a group of high performing technology stocks that includes Facebook, Amazon, Netflix, and Google (Alphabet).
While all these companies started as tiny startups just a couple of decades ago, they have rapidly grown into innovation engines and in the process have delivered stellar returns to investors.
Just to put the size of the FANG companies into perspective, as of September 7, 2018, the combined market capitalization of the four companies was USD 2.4 Trillion. This is greater than the market capitalization of all the 30 companies in the SENSEX (USD 2.2 Trillion) put together!
Nowadays, the FANG acronym has multiple versions. Some investors added Apple to the list to coin the term FAANG. Meanwhile, Goldman Sachs created their own acronym, removing Netflix and adding Microsoft to the mix, to form FAAMG, signifying the top 5 tech companies that have been the primary drivers of growth in the US stock market.
Regardless of what you call them, these technology companies have displayed unprecedented growth and have become darlings of investors across the world. Some key facts about the companies:
Facebook
Along with its own successful social media platform, Facebook owns Instagram, Whatsapp, and Facebook Messenger. All of these are globally recognized platforms with more than 1 billion users each.
Facebook makes the majority of its revenue from advertising. In fact, Facebook, along with Google, is a duopoly in digital advertising. Facebook captures almost 20% of the entire digital advertising spend in the US.
The Facebook stock recently lost USD 120 Billion in value primarily due to concerns over data privacy. Despite the stock price hit, Facebook continues to grow its revenue. At the end of 2Q 2018, the company’s revenue grew by 42% to USD 13.2 Billion.
Amazon
A global e-commerce player, Amazon recently crossed the coveted USD 1 Trillion market cap mark for the first time.
The company has captured 49.1% of the online retail market in the US and is set to post USD 258 Billion in retail revenue in 2018.
One of Amazon’s growth drivers is its cloud computing service called Amazon Web Services (AWS). AWS revenues grew by 42% year on year in 2Q 2018 to reach a revenue of more than USD 4 Billion.
It also has an internet advertisement business, which is expected to drive significant future growth and achieve USD 16 Billion revenue by 2021.
Apple was the first company in the history of the stock market to hit a USD 1 Trillion market cap.
It has the market cornered for smartphones. Despite capturing only 18% of the smartphone volume, the iPhone captures about 87% of the profit margin of the entire smartphone industry. This is in stark contrast to Samsung, which captures only about 10% of the industry’s profit.
It also has a rapidly developing internet services business that grew at 31% year over year to deliver USD 9.5 Billion in revenue in Q2 2018. An incredible feat for a mature company.
Netflix
The first global TV provider and pioneer of the subscription model, Netflix has more than 130 million subscribers worldwide. This large subscription base allows it to spread development cost across its users and thus gain a cost advantage over its competitors.
Recently, concerns have been raised over the high debt the company is raising to fuel content development, and also around the increasing number of streaming competitors.
In the past several years, Netflix has almost always beaten investors’ growth expectations. However, the next phase of its growth is going to be challenging, it missed growth targets for Q2 2018.
Microsoft
Satya Nadella, the CEO of Microsoft, has done a tremendous job in navigating Microsoft through a post-Windows world.
Led by its cloud and AI practice, the company’s revenue surpassed USD 100 Billion for the first time, in the fiscal year 2018.
In its last earnings release, the company announced that its three core business units reported double-digit revenue growth, with Azure Cloud (its cloud services arm) leading the charge by posting 89% year over year revenue growth.
Google (trades under the name of Alphabet)
The leader in digital advertising, Google has captured 90.5% of the search market. Despite its massive size, Google’s revenue continues to grow rapidly.
In Q2 2018, revenue was up 26% year on year to reach USD 32.6 Billion.
The company enjoys a leadership in AI technologies, largely due to its massive user base and superb ability to capture and utilize big data to train state of the art machine learning models.
Clearly, the FANG/FAANG/FAAMG companies are on their way to revolutionizing how the world interacts with and benefits from technology!
In order to become a part of this journey and to invest in these companies, visit Vested – It’s a platform that allows you to invest in US-listed companies like Facebook, Amazon, Google etc. in a cheap and simple way.
Viram is an avid investor, engineer and ex-investment banker. He’s currently the Co-Founder and CEO at Vested and is also pursuing his MBA from the University of California, Berkeley’s Haas School of Business.
Long-term capital gain tax- Simplified [Budget 2018-19]:
For the last couple of days, I was on a long family vacation for my birthday which is on 2nd February. I received a number of gifts. However, there are few major ones that are worth discussing here.
First, just a day before my bday (1st Feb), I got a huge gift from our finance minister Mr Arun Jaitely. It was the re-introduction of the long-term capital gain (LTCG) tax @10% after 14 long years through the union budget 2018-19.
Second, on my bday (2nd Feb), the market gave another amazing gift. The Sensex declined by over 800 points due to the announcement of LTCG tax. It was the first big dip of the year after an immense bull rally in January’18.
Overall, my birthday turned out to be quite happening with lots of news to discuss.
Nevertheless, enough talk about me. Now, let’s discuss one of the biggest topic which every Indian investor is talking right now- the Long-term capital gain tax on equity. And how to calculate it?
Long-term capital Gain tax:
As you all might already know that the long-term capital gain tax is now applicable in Indian stock market, which means that even if you sell the stock after holding it for over 1 year, you have to pay tax for the capital gains.
Earlier, the LTCG tax was NIL. Investors need not pay any tax on the capital gains if they hold the share for more than 1 years.
Here are few of the top points that you need to know regarding the Long-term capital gain tax discussed in the union budget 2018-19:
Up to Rs 1 lakhs, the long-term capital gain is exempted from taxation.
The LTCG tax on the sale of shares listed on the stock exchange after long-term holding is taxable at 10% of the capital gain (exceeding Rs 1 lakh).
The long-term capital gain tax will be applicable only when you sell the long-term capital asset on/after 1st April 2018. All the equity assets sold before 1st April 2018 will be exempted from the long-term capital gain tax.
In the budget 2018 speech, the FM stated that any notational long-term gains until January 31st, 2018 will be grandfathered (exempted from taxation).
‘Grandfather’ simply means ‘exempted from tax’.
However, according to the newly released Frequently Asked Questions (FAQs) regarding taxation of long-term capital gains proposed in finance bill, the long-term capital gain tax will be applicable on the shares sold only on or after 1st April 2018.
This means that even if you sell the stock between 1st Feb’2018 to 1st April’2018, you won’t have to pay any tax on the long-term capital gains.
Further, the new cost of holding of shares i.e. purchase price can be (in general) considered as the highest price on January 31st, 2018. This clause has been introduced in order to safeguard the capital gains of the past loyal long-term investors in the Indian market.
In short, this means that you do not need to worry about the huge long-term capital gain tax if you have bought a stock 10 years back at a very cheap price. Your cost of acquisition will not be considered same as the purchase price (10 years back) while calculating the long-term capital gains. The gains will be calculated only after 31st January 2018.
For example, let’s say you bought a stock XYZ 10 years back at Rs 15. On January 31st, 2018 its price was Rs 1000. Then this capital gain of Rs 1000- Rs 15 = Rs 985 is exempted from the LTCG tax. Further, if you sell this stock after 1st April 2018 at Rs 1080, then the capital gain will be considered only as Rs 1080- Rs 1000= Rs 80. Rest gain is ‘Grandfathered’.
In addition, do not forget the tax exemption on Rs 1 lakh on the long-term capital gain that every long-term investor is getting.
The calculation of the long-term capital gain depends on new acquisition cost (i.e. revised purchase price) for the shares.
This calculation of the acquisition cost for the purpose of the computing the capital gains requires three prices- actual purchase price, highest trading price as on 31st Jan 2018 and the actual selling price.
The acquisition cost will be the higher of the actual purchase price or the lower of maximum traded price on Jan 31st, 2018 and actual selling price.
Sounds complicated? Right? But, it isn’t.
Let’s understand this with an example.
Assume that you bought a stock at Rs 100. The highest trading price of that stock on 31st January 2018 is Rs 200. And the actual selling price (after 1st April 2018) for long-term holding is Rs 150.
Here, the cost of acquisition is higher of:
A. Actual cost (Rs 100)
B. Lower of
Highest price on Jan 31st Jan 2018 (200)
Actual selling price (Rs 150)
Let’s simplify the part B first.
Here, the lower value of {trading price on 31st Jan, 2008—> Rs 200} and {actual selling price—> Rs 150} is Rs 150.
Now the higher value of {part A (actual cost)—> Rs 100} and {part B—> Rs 150} is Rs 150.
Therefore, in this scenario, the cost of acquisition (purchase price) will be considered as Rs 150.
Date of Purchase = 1st January 2017
Date of selling > 31st March, 2018 (holding period > 365 days)
S.No
Purchase Price (Rs)
Highest price on 31/1/2018 (Rs)
Selling Price (After 31/3/2018) (Rs)
Capital Gain (Rs)
Scenario 1
100
200
250
250-200 = 50
Scenario 2
100
200
150
NIL
Scenario 3
100
50
150
150-100 = 50
Scenario 4
100
200
50
Loss
Detailed explanation of the scenario:
Although the table given above explains the capital gain, however, here is a detailed explanation for the long-term capital gains tax:
1) Shares bought after 31st January, 2018:
Let the buyer bought 10,000 shares of a stock ABC
Purchase price of 1 share = Rs 100
Total purchase price = Rs 100 * 10,000 shares = Rs 10 lakh
For short term (holding period < 365 days)
Selling price of 1 share= Rs 140
Total selling price= Rs 140 * 10,000 share= 14 lakhs
Short term capital gain (STCG)= Rs 14 lakhs – 10 lakhs = 4 lakhs
STCG Tax = 15% of STCG = 15% of 4 lakhs= Rs 60,000
For long term (holding period > 365 days) Selling price of 1 share = Rs 180
Total selling price= Rs 180 * 10,000 shares= 18 lakhs
Long term capital gain(LTCG) – Rs 18 lakhs- 10 lakhs= Rs 8 lakhs
Taxable LTCG= 8 lakhs- 1 lakhs= 7 lakhs
(Rs 1 lakh is exempted from long term capital gain tax)
LTCG Tax= 10% of Taxable LTCG= 10% of 7 lakhs= Rs 70,000
2) Shares bought before 31st January 2018:
Let the buyer bought 10,000 shares of a stock ABC
Purchase price of 1 share = Rs 100
Total purchase price = Rs 100 * 10,000 shares = Rs 10 lakh
For short term (holding period < 365 days);
Tax will be same as earlier i.e. 15% of short term gain.
For long term (holding period > 365 days) Highest price on 31st January, 2018= Rs 150
Selling price of 1 share = Rs 180
Long term capital gain (LTCG) per share exempted from tax = Rs 150- Rs 100 = Rs 50
For computing taxes, LTCG per share = Rs 180- Rs 150= Rs 30
Total LTCG= Rs 30 * 10,000 shares= Rs 3 lakhs
Taxable LTCG= Rs 3 lakhs- Rs 1 lakhs = 2 lakhs
(Rs 1 lakh is exempted from long term capital gain tax)
Tax on LTCG= 10% of 2 lakhs= Rs 20,000
The Long-term capital gain tax will be applicable from 1st April 2018 for the financial year 2018-19.
Up to Rs 1 lakhs, the long-term capital gains are exempted from LTCG tax.
The capital gains exceeding Rs 1 lakhs will be taxed 10% as LTCG tax if you sell the stocks after 1st Ap l, 2017 for the long-term asset.
Further, although the long-term capital gain tax calculation seems complicated, however, it’s quite simple and you can easily calculate it within minutes.
Here is a quick summary of the LTCG Tax for different scenarios:
Shares sold on or before 31st March 2018 —> NIL
Shares purchased on/before 31st January 2018 hold for long-term (over 1 year) and sold after 31st March 2018:
Purchase (Buying) Price= Rs 200
Highest price on 31st Jan 2018 = Rs 250
Selling Price= Rs 280
Then taxable LTCG = (Rs 280 – Rs 250) = Rs 30
3. Share purchased after 31st January 2018 —> LTCG Tax@ 10% (when gain exceeds Rs 1 lakhs)
Hi, I am Kritesh, an NSE Certified Equity Fundamental Analyst and an electrical engineer (NIT Warangal) by qualification. I have a passion for stocks and have spent my last 4+ years learning, investing and educating people about stock market investing. And so, I am delighted to share my learnings with you. #HappyInvesting
Should you invest in stocks when the market is high?
The Indian stock market hit the record high yesterday (15 Jan’18) when NSE Index nifty touched 10741.55 points for the first time in the Indian history.
People who have already invested in the market are enjoying the fun ride. But what about those who haven’t entered the market or are planning to invest?
With stock market indexes at the all-time high, it’s certain that those who are new to stocks or just started to put money are confused what to do next? Here are the two common questions that might be running in their head:
Should I wait for a market crash or correction?
Or Should I enter the market? I have already missed out the last few months and what if there is no market crash and the bull market continues? I don’t want to miss this opportunity.
Overall, the main question is whether this is the right time to invest in stocks or should you wait for some correction.
Should you invest in stocks when the market is high?
If you think rationally, then it makes more sense to not invest in the market if it is going to crash tomorrow. Why invest in stocks if its price to going to come down tomorrow and then you can buy the stocks cheap. Putting your money in the market at the wrong time is one of the biggest concern for most of the investors.
But how much certain are you that the market is going to crash tomorrow or in near future?
If you know the fixed date or even the fixed month, please share it with me. I’ll sell my entire portfolio, hold my money and buy the stocks only after the crash.
Here’s a quote from the star fund manager, PETER LYNCH. He is known to deliver 29.2% annual returns for 13 consecutive years while he was managing the magellan fund at Fidelity Investments.
The quote is from Peter Lynch’s best selling book ‘ONE UP ON WALL STREET‘, which I’ll highly recommend you to read.
In the book, Peter Lynch argues that those who spend more time analyzing the economy and predicting the market crash, are simply wasting their time. They can get more benefits from the market if they spend the same time researching the stocks.
Honestly speaking, no one ever knows when will be the next big market crash. Even the greatest market experts and economists had failed to do so. Otherwise, whey would have been the richest person in the world, not Warren Buffett, the Oracle of Omaha.
Now, once you are certain that you cannot predict the future and hence, do not know if there will be a market crash tomorrow, let’s take a different approach and rule out the decision of not investing in stocks.
Let’s recap what we discussed till now. First, you do not know that when will be the next big market crash. And second, you know that market is capable of giving good returns on your investment.
Currently, the bulls are in control of the Indian share market and however, the bull run may or may not continue in the future. The bull market may end next month or might long for the next few years.
With all these uncertainties, the best approach that you can take is to invest intelligently in the market.
Do not look at just the market indexes. Even in the bull market, there are a number of companies which are at 52-week high and 52-week low.
It’s easier if you just look at the stock and ignore the market (for some time). If you find a good stock which is currently trading at a reasonable price and you believe that the company is capable of huge future growth and giving high returns to the investors, then invest in the company. There are over 5,500 listed company and not all of them can be over-priced at once.
The index nifty and Sensex comprises of the 50 and 30 large companies from NSE & BSE. Hence, they are totally capable of ignoring the performance (and valuation) of many of the large/mid/small companies listed on the market. A sample of 50 companies cannot give the exact outlook of all the 5,500 listed companies.
Find some good companies and invest in them, regardless being the market high or low. Even during the bear market of 2015-16, there were many stocks which gave multiple times returns.
There is a common saying in the western world about the stock market investment:
“TIME IN THE MARKET IS MORE IMPORTANT THAN TIMING THE MARKET.”
This means that remaining invested in the share market for the longest time is better than to wait for the perfect time and enter late.
Do not wait too long to get started. You need to remain invested longer in the Indian stock market if you want to create wealth. The Indian stock market is at record high from the last feb’2016. And if you haven’t invested since then thinking that the market is at the all-time high, you have already missed 11 months of the bull run, where may have already created huge wealth for many.
If you feel the market is at ‘high valuation’ don’t buy the market, buy stocks. Buy companies with comfortable valuation. India still has large number of small market-cap companies with significant business; keep an eye on changing profile of ‘chor companies’, you are not late?
For newbie investors, I will recommend- Rupee cost averaging. Invest a certain amount of money each month.
If you are not certain about the future price movement of a stock but are confident that it is fundamentally strong, then follow the rupee cost averaging approach.
Invest a few amount every month in the stock for the next 5-6 months and average out your buying price.
Moreover, avoid lump sum investment i.e. investing the complete amount at one go.
1. Even the worst stock market crash couldn’t destroy the wealth of the long-term investors:
I know most of the investors get panicked when they hear the word ‘CRASH’. No matter how much reasons I give to invest, however after reading this word, you might be re-thinking that I shouldn’t invest now. Maybe the market will crash soon as the market is at the record high. I will invest in the market later.
I wish making decisions to invest was that easy. No one can predict the precise date of the stock market crash. And If we can’t control or forecast something, it’s not that important to discuss.
Nevertheless what we can do, is to read the historical data.
Let’s analyze the worst stock market crash in the Indian history- 2008 Stock market Crash.
The biggest crashes were on two consecutive days- 21 Jan and 22 Jan during the 2008 recession time. On both these days, the BSE Index Sensex fell over 2,000 points. Moreover, there were 7 trading days when the Sensex fell over 1,000 points in 2008.
I wasn’t involved in the market at that time (too young), however, I can imagine the panic. The stock market experts say that every investor is destined to see at least two big stock market crashes in his/her career. I hope it counts as one 😉
The point to note here is that even the worst Indian stock market crash would not have been able to destroy the wealth of the long-term investor.
In the above chart, notice that even if you have invested at the peak of 2008 and had remained invested for 8–10 years time horizon, you would have received decent returns from the market.
Further, as I already stated above, you cannot predict when the next crash will happen. It may be within a year, or maybe after 5 years, or maybe after decades, who knows?
Moreover, what if we are at the stage of 2005 when the stock market was still at an all-time high but at the beginning of the bull run?
Those who didn’t invest in 2004/05 thinking that the market was at high, missed the bull run phase of over 3 years. And just for your information, the NSE benchmark index Nifty gave a return of 36.3% (2005), 39.8%(2006) and 54.8%(2007) in that bull run.
In 2017, nifty gave a return of 28.6% to the investors and people think its huge (The below graph is updated upto July’17).
I cannot say whether there will be a market crash or not in the future. But what I can say is that the Indian economy is going through a major boom. And if you do not invest in stocks, you might miss one of the biggest stock market rally.
2. You will never be able to find the perfect moment:
Today the market is high. And that’s why you are not investing. Tomorrow, when the stock prices will be falling and many of the companies will be making their all-time low, will you have the nerve to enter the market?
It’s really tough to buy the stock at the exact bottom and sell at the top. To be honest, those who are able to do it are often lucky. Moreover, it’s not repeatable. Even if you’re able to do it once, you definitely cannot repeat it again and again.
If you are waiting to enter the market when it’s at the bottom, then it’s really difficult. Similarly, if you are trying to exit from the market, thinking that the market is high, how can you be certain that it’s the top?
Overall, do not try to time the stocks, in spite try to stay for a long time in stocks. AS ALWAYS, TIME IN STOCKS IN BETTER THAN TIMING THE STOCKS.
What approach should the old-investors follow?
For those who have already invested in the stocks, do not move out of the market, just because the market is high or your stock is at the 52-week high.
If you are investing for long-term (8-10 years or more), then surely you will find few times when the market is at high. Are you always going to quit that time? Most of the greatest investors are known to hold the stocks for 10-15 years, and not to sell them in between even when their stocks hit new highs a couple of times in this period.
The world’s most renowned investor, Warren Buffet bought the stocks of Coca-cola in the late 1980s (around 1988-89) and is still holding that stock for over 27 years now.
The Big bull of India, Rakesh Jhunjhunwala bought the stocks of Titan Company in 2002-03 and is still holding the stock. Certainly many a time the market was at its high in the period of last 15-16 years. But being a long-term value investor, Rakesh Jhunjhunwala didn’t sell the stock, just because the market was high.
In short, do not exit from the stock just because the market is high. You might never be able to enter the stock again at the same discount price where you entered first.
Conclusion:
The stock market indexes- NIFTY & SENSEX are high, isn’t a valid reason to not invest in the share market.
While investing in share market, look at the company, not the Index. If you are able to find a good stock at a reasonable price and believe that the company has huge future growth potential, then invest in it.
You cannot predict whether there’s gonna be a crash or a long bull market ahead.
The key to success in stocks in to minimise the risks, not to avoid it. If you invest in stocks intelligently, then you can minimise the risks, even in the crash, correction or bear market. However, if you avoid the market, then you won’t be able to get any benefits; even if there is a bull run in the market.
Quick Note: According to the World Bank’s Global Economic Prospects, India is likely to regain the position of the fastest growing economy in 2018. India’s growth rate is expected to accelerate to 7.3% in the year. Still not want to invest in the growing economy of the country? Read more here.
BONUS:
What’s the golden rule for wealth creation for the new and old investors?
Invest for the long term. Find fundamentally strong stocks and hold it tight without getting influenced by the public sentiments. Do not wait for the ‘bestest’ time to enter the market. Many had failed to time the market and you will too.
You may call this a conservative approach. However, if the long-term investment has worked for most of the successful stock market investors and had created huge wealth for them, then it can definitely create decent wealth for us too.
THAT’S ALL! I hope this post is useful to the readers.
Let’s end this article with one of my favorite quotes on investing:
“THE BEST TIME TO INVEST WAS YESTERDAY. THE SECOND BEST IS TODAY. AND THE WORST IS TOMORROW.”
If you are new to stocks and confused where to start, here’s an amazing online course for the newbie investors: INVESTING IN STOCKS- THE COMPLETE COURSE FOR BEGINNERS. I’m confident that the course will be useful to the new investors. Happy Investing.
Tags: Should you invest in stocks when the market is high, is now a good time to invest in the stock market 2017. invest now or wait for correction, should i invest in the stock market today
Hi, I am Kritesh, an NSE Certified Equity Fundamental Analyst and an electrical engineer (NIT Warangal) by qualification. I have a passion for stocks and have spent my last 4+ years learning, investing and educating people about stock market investing. And so, I am delighted to share my learnings with you. #HappyInvesting
The Indian stock market holidays 2018 has been announced. There’s going to be 16 holidays throughout the year (apart from regular holidays on Saturdays and Sundays).
Here are the trading holidays for Equity Segment, Equity Derivative Segment and SLB Segment:
Muhurat trading, the traditional trading on the day of Diwali, timings will be announced in the month of Diwali. It will be held on Wednesday, November 07, 2018 (Diwali – Laxmi Pujan).
Hi, I am Kritesh, an NSE Certified Equity Fundamental Analyst and an electrical engineer (NIT Warangal) by qualification. I have a passion for stocks and have spent my last 4+ years learning, investing and educating people about stock market investing. And so, I am delighted to share my learnings with you. #HappyInvesting
75x Returns by Sensex in last 30 Years of Performance:
Hi Investors. Today I have brought an interesting insight for the investors. We are going to discuss the Sensex performance in the last 30 years. So, let’s get started.
SENSEX IN LAST 30 YEARS:
Here is the data of Sensex for the last 30 years.
YEAR
SENSEX (Closing Pts)
1987
442
1997
3,658
2007
20,286
2017
33,573
You can get this data from BSE India website using this link.
Here is the chart of Sensex in last 30 years till date.
From the above data, you can notice that Sensex has given multifold returns in the last 30 years. From a mark of 442 in 1987, Sensex is currently at an all-time high with 33,573 points (November 2017).
The BSE index has given an astonishing return of 75 times in its last 30 years.
In short, an investment of 10 lakhs in the BSE Index fund 30 years back, would have turned out to be 7.5 crores by now.
Note: If we compare this return with 4% p.a. returns from the savings account, we will get just 22 lakhs net amount in 30 years.
Overall, Sensex has turned out to be a wealth creator for those who invested in the market in time. Those who invested even in the index fund of Sensex in last 30 years, would have been sitting on a huge pile of wealth in the age of their retirement.
Nevertheless, those who missed this rally should not be disappointed and should invest in the market on suitable opportunities.
Moreover, they should invest actively by becoming an investor rather than a trader or side walker (short-term investor).
Currently, the market is at an all-time high. However, this should not stop the investors from investing in SIPs even if there might be a correction in the market in near future.
Invest for the long term as it has always turned out to be a wealth creator for most of the investors. Long-term investments tend to reward its investors eventually.
For a short term, there will always be fluctuations in the market. If we study the last financial year 2016-17, we can notice that there were a couple of swings in the market due to multiple reasons like demonetization, US Presidential election, Implementation of GST etc.
If you invest for the short term, there will be volatility due to the domestic or global factors.
However, for the long term, bulls become in charge if you have invested in the fundamentally right stock.
India is growing at a very decent pace and in the next 3-5 years it will turn out to be a rising star in the world. I am highly optimistic about the growth of the Indian economy and suggests the investors remain invested in the market for long term.
There is a famous quote used by Motilal Oswal Group that I would like to quote here:
Hi, I am Kritesh, an NSE Certified Equity Fundamental Analyst and an electrical engineer (NIT Warangal) by qualification. I have a passion for stocks and have spent my last 4+ years learning, investing and educating people about stock market investing. And so, I am delighted to share my learnings with you. #HappyInvesting
10 Common Stocks at Rs 100 or less as Market Price. Many people think that they require huge lot of money to invest in share market. But it is not so true.There are lots of company in Indian stock market whose market price is even less than the cost of a burger.
There are a number of penny stocks trading between Rs 1 to 10 (find more here). Even, big companies like Ashok leyland, Tata Power, Steel Authority etc are also selling at a market price lower that Rs 100. So, today I am listing the list of such 10 Common Stocks at Rs 100 or less as Market Price.
10 Common Stocks at Rs 100 or less as Market Price
S.No
Company
Price (In Rs)
1
Idea Cellular
86.70
2
Federal Bank
92.70
3
Ashok Leyland
82.50
4
Tata Power
85.55
5
Crompton Greaves
79.50
6
IDBI Bank
75.10
7
National HyroElectric Power Corporation (NHPC)
32.25
8
Reliance comm
36.80
9
SAIL (Steel Authority India Ltd)
63.85
10
Bombay Dyeing
83.50
Funny, the stock prices of these companies are even less than the Ola or Uber ride fare. Still people speculate that buying stocks are expensive.
Disclaimer: Please note that I am not recommending you to buy these stocks just because their price is low. You should always buy a stock only when its selling at a bargain price. Bargain stocks are not such stocks whose share price is low. Its those stocks which are trading at a much lower than its intrinsic value.
Tags: 10 Common Stocks at Rs 100 or less, Indian stock market 10 Common Stocks at Rs 100 or less as Market Price, 10 Common Stocks at Rs 100 or less as Market Price in India
Hi, I am Kritesh, an NSE Certified Equity Fundamental Analyst and an electrical engineer (NIT Warangal) by qualification. I have a passion for stocks and have spent my last 4+ years learning, investing and educating people about stock market investing. And so, I am delighted to share my learnings with you. #HappyInvesting
10 Common Stocks that gave more than 100% return last year. Peter lynch, the legendary investor and fund manager, used to say ‘‘Invest in what you know’’ in his best-selling book “One up on the Wall Street”. By this he means –‘there are a number of common stocks which anyone can find easily around them if they are looking’. You do not need to find a rare petroleum stock which no over has ever heard. You just have to look around and find some decent companies in your surroundings to invest in.
“Know what you own, and know why you own it.”
“The simpler it is, the better I like it.”
“The worst thing you can do is invest in companies you know nothing about. Unfortunately, buying stocks on ignorance is still a popular American pastime.”
– Peter Lynch
So, toady I have compiled a list of 10 such common stocks which a common people could have found easily while walking in their city or during travelling in the city-bus.
Here is the list of the 10 Common Stocks that gave more than 100 percent return last year. I hope few of them are in your portfolio for over a year.
10 Common Stocks that gave more than 100% return last year.
STOCK
8-May-17
9-May-16
% Change
SENSEX
29926.15
25688.86
16.49
NIFTY
9314.05
7866.05
18.40
INDIAN BANK
352
92.9
278.90
RURAL ELECTRIFICATION
216.6
84.82
155.36
FEDERAL BANK
118.9
49.15
141.91
BAJAJ FINSERV
4409.05
1875
135.14
SUN TV
851
364.5
133.47
PUNJAB NATIONAL BANK
176
82.8
112.56
BANK OF INDIA
185.4
89.35
107.49
INDIAN IOL CORP (IOC)
428.55
209.9
104.16
JAYPEE INFRATECH
14
6.95
101.43
MRF
67501
33650
100.59
Here is the list of other six common stocks that has given more than 50 percent return for the last year.
Hi, I am Kritesh, an NSE Certified Equity Fundamental Analyst and an electrical engineer (NIT Warangal) by qualification. I have a passion for stocks and have spent my last 4+ years learning, investing and educating people about stock market investing. And so, I am delighted to share my learnings with you. #HappyInvesting
BSE Initial public offering (IPO) is set to enter the market on 23 January. The bidding will be open until 25 January. The analysts are expecting a huge demand for the issue of the oldest stock exchange in asia.
The issue price for the Bombay stock exchange initial public offering will be Rs 805 – 806 per share. The minimum order quantity will be 18 shares.
Here are the details about the BSE Initial public offering:
Issue Open: Jan 23, 2017 – Jan 25, 2017
Issue Price: Rs. 805 – Rs. 806 Per Equity Share Minimum Order Quantity: 18 Shares Market Lot: 18 Shares
Face Value: Rs 2 Per Equity Share
Issue Type: Book Built Issue IPO Issue Size: 15,427,197 Equity Shares of Rs 2 aggregating up to Rs 1,243.43 Cr
Yesterday, Tata sons announced the appointment of N Chandrasekaran, 53, as the Chairman of the Tata Sons. The holding company of $116 billion group. He is currently the chief executive officer of the largest software company of India, TCS. He will take his post as Chairman from 21st Feb.
TCS also appointed Rajesh Gopinathan as the CEO of the Tata consultancy services. Prior to Thursday’s appointment, Gopinathan served as Chief Financial Officer(CFO) of the company since February 2013.
On Thursday, the Tata Sons board met at their Bombay house (the headquarter of the TATA sons) and chose N Chandrasekaran unanimously. The panel for selection of the chairman is headed by veteran interim chairman Mr Ratan Tata. Other members are TVS Chairman Venu Srinivasan, Bain Capital’s Amit Chandra, former diplomat Ronen Sen and Kumar Bhattacharyya of Warwick University.
N Chandrasekaran
The software engineer who joined TCS in 1987 and became the CEO in 2009. During his years at TCS, the TCS has jumped three fold from Rs 30,ooo crore in 2010 to Rs 1.09 Lakh crore in FY16. Profits also jumpe more than three times (from Rs 7,094 crore to Rs 24,375 crore). TCS now accounts 60% of the Tata group’s combined market cap of $116 billion.
“Chandrasekaran has demonstrated exemplary leadership as the chief executive officer and managing director of TCS. We believe he will now inspire the entire Tata Group to realise its potential, acting as leaders in their respective businesses, always in keeping with our value system and ethics and adhering with the practices of the Tata Group which have stood it in good stead,” Tata Sons said in a statement.
“I will grow into the role over a period of time. It is a responsibility which requires binding the group together. I want to show my gratitude to the board and RNT,” exclaimed Chandrasekaran after the accouterment.
N Chandrasekaran was sure winner, claims some sources as he was an insider who is familiar with TATA culture, experience and working of the group We congratulate N Chandrasekaran for the crown post and will be looking forward for the Chandra’s global experience as the chairman.
The demonetization of 500 and 1000 rupee notes have dipped market very badly as lots of investors started withdrawing money out of the market. Some sectors like real estate where most of the black money is involved has effected very poorly.
Here is the sector wise analysis of the stock-market due to the effect of demonetization.
Banking and Finance:
At first when the demonetization news was announced, investors thought that from then onwards each and every transaction in the market will happen through banks (which is true) so for the first 4 days the almost all the major banking companies SBI (10%), BOB (11.21%), ICICI (3.4%), PNB (13%), BOI (14.4%), Union Bank of India (11.4%) soared. After that cash was being accumulated into banks and there is no outflow of cash from the banks so investors thought companies has to pay the minimum 4% interest to the depositors and hence companies income through loans are low compared to depositors; so investors started losing confidence in banks from then onwards till Jan 1st almost all biggies SBI (13%), BOB (7.3%), ICICI (13%) , PNB (27.7%), BOI (14.2%) and Union bank of India (15.5%) share prices fell down.
Later Narendra Modi announced benefits on home loans of up to 9 lakhs; the poorest and the most underprivileged will get a 4% interest benefit. For home loans of up to 12 lakhs, they will get a 3% interest benefit and all the biggies announced lending rate cuts ranging from 40 to 90 basis points with this various companies will take loan from banks for development purpose, no of people buying homes will increase so in the upcoming few quarters banking sector has huge potential to grow up to 9.5%.
FMCG:
Due to demonetization customers dint have money to purchase daily consumable goods, so market value of FMCG went down due to less sales but after Dec 30 cash started flowing in the market so people started purchasing goods from the shops due to this market value of FMCG started increasing, Even though the share prices of these companies went down they will recover and bullish within 2 to 3 months.
Real estate:
We can see the real estate sector in two forms 1. Luxury homes sector and 2.Residential homes
Luxury homes: – The luxury and high-end segments of residential real estate have seen a major impact, since the legal banking/financing channels have accounted for only a small part of all transactions in this space, which has seen many payments done in cash, which resulted in luxury properties dipping by 25%-30%. Prices of so many companies Delta crop (50%), DLF (27%), HDIL (27%) fell down drastically.
Residential homes: – In this sector almost all the transactions happen through banking/ financial channels so even if the share prices of these companies fell down due to demonetization news such company share prices will correct within a few months. Some of the companies that is happening like this are KNR construction, Hindustan construction.
Livemint is one of my favorite newspapers to read and stay updated with the stock market. The reason is its clear editorials and nicely designed pages. This newspaper is published by HT Media, a Delhi-based media group that is controlled by the KK Birla family and also publishes Hindustan Times. Livemint provides information about Markets, Companies, Money, Start-ups, Mutual Funds, Investment Queries, Insurance, Technology and more. They also offer e-Paper, you can log-in and get the latest news.
I highly recommend you to read this book.
