What are the Different Career Options in the Stock Market in India cover

What are the Different Career Options in Indian Stock Market?

The equity market has opened a lot of career opportunities in recent years. This market is getting bigger day by day and the opportunities for employment in the Stock Market are growing every day. People from all backgrounds whether science, commerce or humanities, are showing more and more interest to pursue their careers in Stock Market today.

On one hand, many people are opting to become a financial market participant and work independently. On the other, a significant number of Startups are establishing innovative ideas to create disruption in the Indian Securities Market.

In this post, we are going to discuss a few excellent share market career opportunities in India. Let’s get started.

Different Career Options in Indian Stock Market-

— Stock Broker

As you might already know, if you want to trade or invest in the Stock Market, you must open a trading and Demat Account. These two accounts are offered by stockbrokers. So, given the largely growing investing population of India, you can easily guess how prospective the career as a Stock Broker could be.

For example, If we take of Mr. Nithin Kamath, the founder of Zerodha (discount broker), he started off his career as an Engineer and subsequently started taking interest in the Stock Market. Later, he found the financial market so fascinating that he switched his profession as an engineer to a Stock Broker. In the year 2018, Zerodha, his stockbroking company was awarded the best discount broker entity in India by NSE.

zerodha kamath

Further, in order to become a Stock Broker or open a stockbroking entity, you don’t require a strict eligibility criterion in terms of academics. Nonetheless, you need to clear NISM exams and get your license from the SEBI. Anyways, if you plan to be a Stock Broker, it is important to gain a practical understanding of the Market. So, it is better to work with a Securities Broker for at least 5 years to gain requisite experience if you are willing to start your own venture.

Next, if you want to get employed in a Stock Broking Firm, you will need to clear 12th standard at the minimum. Graduating in Accounting, Economics or Finance will help you start your career from a decent level. Qualifying Post Graduation is not necessary but it might help in fast promotion in the industry. In case you have qualified professional courses like CFA, CA or FRM, no doubt your career path would become really smooth.

(Note: You can read detailed information regarding making a career as a Stock Market Broker here.)

— Financial or Investment Advisor

If you want to start your own consultancy business in the Financial Market, becoming a Financial Advisor or an Investment Advisor is a perspective option.

In recent years, AMFI has been trying hard to bring the income earners in our country to invest in the Mutual Fund industry through their campaign “Mutual fund Sahi hai!”. However, just AMFI is not big enough to educate and convince billions of people in our nation to invest their money in the financial market. As an Investment Advisor, you can reach a plethora of prospective clients.

Preparing customized financial plans, providing consultancy services on wealth management and educating people on financial products can assuredly help you to build a career and make good money in this industry.

To become a Registered Investment Advisor, you will require an education and certification criterion. If you have a graduate degree in Finance/Commerce or at least 5 years of work experience with a financial company, you meet the educational criteria. Note that if you are an engineer with just a B.Tech degree, you do not meet the educational criteria by SEBI. Here, you need work experience in the finance field for at least 5 years or a post-graduate degree in finance.

Anyways, if you are a Post Graduate degree in finance, you won’t require any work experience to apply for your license from SEBI. Further, whether you are a Graduate or a Post Graduate, you mandatorily need to clear the NISM Investment Advisory Certification exam to apply for the SEBI registered Investment advisor. Once you meet all the educational and certification criteria, you can apply to SEBI and get your license. (Note: You can read this post to learn further on how to become an Investment advisor in India.)

Besides, completing CA, CFA or CFP will also help you get the required knowledge you need to render professional services to your clients.

Also read: What is SEBI? And What is its role in Financial Market?

investment advisor

— Research Analyst

Apart from becoming an investment advisor, Equity Research Analyst is also a lucrative career option nowadays. Let us have a brief understanding of this.

Equity Research includes Buy-Side Research and Sell-Side Research. In the case of the former, the researcher work with a financial service organization which directly invests people’s money in the Stock Market. Here, you need to research the stocks to help the Fund Managers make decisions with respect to managing the available financial assets. In the case of Sell-Side Research, the researchers analyze equities and equity derivatives for the clients who are retail traders and investors.

If you want to start your own business as an independent Research Analyst, the eligibility criteria are similar to Investment Advisory option. Further, if you want to take a job as a Research Analyst, the top financial service entities in India look for candidates who are MBA graduates from Tier 1 institutes. Nonetheless, you can also make a career as a Research Analyst if you have completed CFA or CA. (Note: You can read further regarding Equity Research Analyst profession here.)

— Portfolio Management Services (PMS)

If you are a Mutual Fund investor, you might know that your investments are managed by experienced and skilled Portfolio Managers. The Wealth Management firms operating in India handle clients’ money via professionally qualified Fund Managers. Portfolio Management could be an extremely rewarding career if you are good at managing money and have a strong understanding of the Financial Market.

In order to enter this field, you will require professional qualifications like CA, CFA or MBA (Finance). Moreover, if you are a fresher, it is extremely hard to get into this field. Here, you may need experience of at least a decade of working in the Finance domain as you need to grasp the level of maturity of handling assets which amount in crores. Therefore, if you are considering to become a Portfolio Manager, you may first start working in the marketing and research for 5 to 10 years. (Note: Here is a blog that can answer your additional questions on the career as a Portfolio Manager)

Conclusion

In this article, we tried to cover different career options in Indian stock market. Parting advice- if you are planning to make a living from the Stock Market, you need to have an in-depth understanding of the financial world.

Although possessing academics and professional qualifications are necessary but having practical exposure to how the market exactly works is more important. Besides, whichever stock market career option you choose, having strong communication and analytical skills are always add-on advantages.

January 14, 2020 Investment Basics, News 7 comments
Corporate Social Responsibility (CSR) - What does it actually mean cover

Corporate Social Responsibility (CSR) – What does it actually mean?

Corporate social responsibility, which is known as CSR, is a type of mechanical business model that can help a company to be socially accountable and responsible to all the stakeholders and the public related to the interests of the company. With the help of corporate social responsibility, a company can be socially accountable to the people, and it means that it owes something to them. It is a type of corporate citizenship that a company has over time.

First of all, CSR helps in image building formation. 

With the help of the corporate social responsibility, a company can be conscious of the type of image that it creates to the society and impacts on the well-being of the people, directly and indirectly. There is a lot of impacts that the company can source out to the public. This can be done with the help of the economic, social, and environmental kind of ways.

If your company wants to engage in the work of corporate social responsibility, then they have to socially responsible for the well-being of the public whose interest lies in the company. It has to operate in such a way that it can be good and enhance the presence of the company, socially or culturally.  

Corporate social responsibility in India

When it comes to India, then it is the leading source of business from all around the world. It is the first country that has made corporate social responsibility CSR mandatory, which the help of passing a law in the amendment in April 2014. With the help of these companies act passed onto by India, now businesses can directly invest their profit into the area of the society, they can help the community to have a better formation for the further source, and in the best way, CSR becomes a hunger for every company out there in the market.  

tata trusts Corporate social responsibility

Company’s Act passed for maintaining CSR by Indian Companies

According to the whole of the company’s act, which was passed onto by India, it was sourced that the net worth of any business will now be a part of the CSR here. To the net profit of about 5 crores made by any company, around 2% of the same target is to be spend around for the well-being and management of the society as a whole so that the community can profit from the revenue which is managed by these companies.  

Before the same, India made it mandatory for the companies to disclose all their corporate social responsibility reports to the stakeholders and the shareholders of the company. 

They should be liable and should be a part of the company’s profit-earning capacity as well. These were included for the projects related to the company’s activities and the projects that were related to the activities taken by the company on-board.  

It was recommended all by the CSR committee as a whole to cover all the items listed in the source of the Companies Act, which was stated during the time of amendment. 

Also read: What is Corporate Governance? Principles, Examples & More

What is the whole methodology of the CSR Technique?

With the help and including CSR for companies out there, it can help them to profit and earn them for the scope of the long run. It is the procedure of assessing all the impact of the organization on society and then slowly evaluating all their responsibilities. These responsibilities, which are managed by the group of organizations that uses CSR is to help the community become a better place by distributing the part of the revenue which is made and even sourcing out the following aspects which are presented below.

1. Channeling the needs of the customers

The customers are the central part of it. With the help of the customers, an organization can run smoothly. With the use of corporate social responsibility, a business can go in for the long drive of run with the source of the customer that they have. It can help them to the pan and rule out the odds.

2. Helping the suppliers to earn

Another one which comes on the second lot is the suppliers of the business. A business can only profit when the suppliers are pleased. These are done with the help of corporate social responsibility. When the part revenue is distributed, the suppliers can be happy and supply more for the business and include their service for a longer time.

3. Creating a proper work environment

The environment where the business is incorporating should be steady, as well. If the climate is not stable, then a company cannot lead its growth and go towards the best. This is why corporate social responsibility can help to enhance the working environment, inside and out of the organization.  

4. Helping the communities

The communities are a huge part of society. These are the forums and groups through which the whole nation is based. If the business has to go for a longer duration, then they have to please the community members. This is done with the source of CSR and maintaining a cordial relationship with the communities of the society for a better outcome of results from altogether. The cities are the prime, and any organization should know it.

5. Providing comfort to the employees

The last one who lies here is the employees of the organization. If the working members of the organization are pleased, then only a business can run. Labor is what every organization needs out there and especially if they are skilled enough to do the job. CSR helps to have a proper relationship between the business and the labor.

Also read: Top 10 Companies in India by Market Capitalization

Legislation management for CSR

The most effective plan of corporate social responsibility for any business is to create legislation and to comply with it. Their investment for the source of the company should be a part of the whole society, and every decision that a company takes, the community should be a wholesome concern. The investments are a part of growth for any type of business out there, and only when the growth helps the community to lean towards the work of a company, the organization can have a more profitable revenue for the working years.  

Organizations in India always thrives for corporate social responsibility

There are a lot of organizations located in India which thrives on the source of corporate social responsibility and have benefitted from the whole idea. They have to take special CSR initiatives altogether, which can help them to integrate the cause and to work on the entire business process on the run. With the upcoming years in the market, all these have become an endless source of income for the business as a whole, and it has helped them to gain revenue.  

Besides growing your business, you should respect the culture and the beliefs of the people who are around you. With the help of respect, it creates a massive value of the business in the eyes of the public. It can help them to shape the business, which can be sourced out to a higher chance of collecting more revenue.

Businesses tend to profit more

With the help of CSR, an industry can source out their impending management and shape their responsibilities altogether. It can help them to understand the community at a large and also tend, adhere to the needs of the city. Companies do have a specific source and type of demand, which can help the department and the teamwork towards the development of particular purposes.

CSR management in Indian companies

CSR programs help the whole business to work for separate budgets and then support them in a wholesome way. It can improve the business to scope out the primary source of profit by looking after the well-being of society. When it comes to managing the source of work, then companies do have a specific source of the department which handles the work of corporate social responsibility. These are the departments that set up the policies of the CSR and then come up with freshly integrated ideas.

January 6, 2020 Economics, News No comments yet

Are you ready for ‘Muhurat Trading’ this Diwali?

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.

diwali sensex

Here are a few quick links to read more:

Once again, a very happy Diwali. And HAPPY INVESTING.

October 24, 2019 Market, News No comments yet
interim budget 2019 20 cover

Interim Budget 2019-20: The Talk of the Town

On the 1st of February, 2019, the Interim Budget of India, for the financial year 2019-20 was announced in the Union Legislature. Our honorable Finance Minister, Mr. Piyush Goyal, who is a Chartered Accountant by qualification, gave the budget speech, which lasted for around two hours, where a plethora of points were covered.

If you were at home while the budget was announced, you might have got the privilege to watch it live on television. Anyways, I was out on the street when the budget was broadcasted live. And therefore, unfortunately, I missed it. But subsequently, I watched the same on YouTube.

A Union Budget does cover plenty of pointers out of which only a few are those which we, as an individual, can relate with ourselves. This year budget has famously talked about taxation, agriculture, health industry and many other key aspects of our country’s economy.

In this article, we are certainly not going to discuss the entire budget as a whole. Rather, we shall talk a few selective crucial points which you, as an investor, need to know in order to manage your personal finance in the upcoming fiscal year for which this budget will be applicable.

Personal Taxation and Union Budget 2019-20

Income Tax

Firstly, let me tell you that the Income Tax slabs which were for the earlier financial year will remain the same for the FY 2019-20. In other words, there is no change in the tax slab for the people. However, the tax rebate under section 87A has been made applicable for an individual having total income up to Rs. 5 lakhs, (where the previously applicable limit was Rs. 3.5 lakhs).

The tax rebate limit for the ongoing financial year is Rs. 2,500. Nonetheless, the maximum limit of this tax rebate has been raised to Rs 12,500. Therefore, as an individual taxpayer, if you have annual taxable income up to Rs 5 lakh, it won’t attract any income tax.

Note: Currently, the net income falling within Rs 2.5 lakh and Rs 5 lakh is taxed by the Indian Government at the rate of 5%.

Considering this tax rebate, even if your annual gross income goes up to an amount of Rs 6.5 lakh, you won’t require to pay any tax on the same, provided you have made investments in the instruments prescribed u/s Section 80C of the said Act.

Quick Note: Under section 80C, a deduction of Rs 1,50,000 can be claimed from your total income by investing in a few tax-deductable investment options like LIC, PPF, Mediclaim, incurred towards tuition fees etc. This can help you to reduce your total taxable income by up to 1.5 lakhs.

However, if your taxable income exceeds Rs 5 lakh (and you have not made any investment in tax saving instruments u/s 80c), then, unfortunately, you won’t get any rebate in Income Tax.

The table shared below is an example which can help you understand what our honorable Finance Minister has tried to say with respect to the new income tax rebate clause.

income tax rebate

Capital Gains Taxes of Houses

As announced in the interim budget, you will not be taxed by the Indian Government on the notional rent of the second self-occupied house property. Therefore, here the key takeaway is that exemption is made allowable up to two self-occupied house properties.

This exemption u/s Section 54 of the Income Tax Act, 1961 will now be available on your second house property but it has come with a proviso. Your capital gains should either be less than or equal to Rs. 2 crores. Anyways, this benefit can to be availed by you only once in your lifetime. (Read more here).

TDS Relief

Presently, if your interest earning on Post Office Savings and Bank Deposits used to cross Rs 10,000, TDS u/s 194A used to get attracted.

However, the proposed budget has raised the limit from Rs 10,000 to Rs 40,000. In case of senior citizens, the limit has been increased to Rs 50,000. This proposal will surely benefit the individuals who are highly dependent on the interest income from their deposits interest earned on savings deposits, fixed deposits, as well as other deposit schemes in banks and post offices.

Standard deduction and other taxes

In case you are a salaried person, previously you used to get Standard Deduction of Rs 40,000. Now, this figure has been increased to Rs 50,000 which is, of course, going to benefit you financially.

Also read: What are the capital gain taxes on share in India?

Closing thoughts

This Interim Budget will become final unless a new Government comes into power after the Lok Sabha election which is to take place in a few months. However, if indeed a new Government comes into the picture, then this Interim Budget will cease to exist. Such new Government will frame a different Union Budget which will govern the Financial Year 2019-20 in India.

Since the day this Interim Budget was announced, it has created a plethora of confusions on some specific aspects of the budget among the residents in our nation. Out of all such confusions the clause related to rebate u/s 87A has so far seemed to be the most difficult and weird for the majority of the Indians to decode. This is again needed to be said that the tax slab has not been changed at all.

Every February, the new Finance Act (i.e. Union Budget) is declared by the Central Government of India. In every occasion, the budget brings new and/or amended clauses with it which subsequently makes the Indian taxpayers feel puzzled. Therefore, it is expected that even this budget will become clear among the people in India within the next few weeks.

There are people who have shared their negative feedbacks with respect to this budget. On the other side, many people are saying that this is one of the best budgets that India has witnessed since its independence. They have also added that this budget is probably the best budget that our current Government, formed by BJP (Bharatiya Janata Party), has come up with within its current five years tenure.

February 4, 2019 News No comments yet
indian stock market holidays 2019

Indian Stock Market Holidays 2019

The Indian stock market holidays 2019 has been announced by the stock exchanges. There’s going to be 15 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:

Indian Stock Market Holidays 2019

S. No Holidays Date Day
1 Mahashivratri March 04,2019 Monday
2 Holi March 21,2019 Thursday
3 Mahavir Jayanti April 17,2019 Wednesday
4 Good Friday April 19,2019 Friday
5 Maharashtra Day May 01,2019 Wednesday
6 Id-Ul-Fitr (Ramzan Id) June 05,2019 Wednesday
7 Bakri Id August 12,2019 Monday
8 Independence Day August 15,2019 Thursday
9 Ganesh Chaturthi September 02,2019 Monday
10 Muharram September 10,2019 Tuesday
11 Mahatma Gandhi Jayanti October 02,2019 Wednesday
12 Dussehra October 08,2019 Tuesday
13 Diwali Balipratipada October 28,2019 Monday
14 Gurunanak Jayanti November 12,2019 Tuesday
15 Christmas December 25,2019 Wednesday

(Source: BSE India)

Quick Note:

  1. Muhurat trading, the traditional trading on the day of Diwali, will be held on Sunday, October 27, 2019 (Diwali – Laxmi Pujan). The timings will be announced subsequently in the month of Diwali.
  2. The holidays falling on Saturday/Sunday are not listed above.
  3. The Exchange may alter/change any of the above holidays, for which a separate circular shall be issued in advance.

Also read: Stock Market Timings in India.

December 28, 2018 News No comments yet
wealth creators 2018 cover

Top 20 Wealth Creator (& Destroyer) Stocks of 2018

The calendar year 2018 was full of ups and downs for the Indian stock market investors. While Sensex made its all-time high in August 2018, the net return in this year is still just 4.90% (YTD). Sensex started with 33,812 points in January 2018 and as of December 2018, it is currently hovering around 35,470 points.

nifty 2018

On the other hand, if we look into the NSE benchmark index Nifty 50, it started at 10,435 points in January 2018 and currently trading at 10,663 points, with an overall return of merely 2.18% this year.

nifty 2018

If we compare the returns on Nifty in 2018 with that of last year (2017- when it gave a return of around 28.6%), we can easily notice that the index has comparatively underperformed in 2018. Nonetheless, ups and downs are the characteristics of the market and the stock market investors should be not be haunted by it.

As the year 2018 is fastly approaching to its end, we performed a short analysis to find the winning and losing stocks of 2018. Here is a list of 20 large cap companies in India with a market capitalization greater than Rs 100 Billion, which either grew over +30% or fell over -35% within the year 2018.

If you are interested in large-cap companies, this list might give you a rough idea of the stocks that you missed or can add in your watchlist for the upcoming year.

Top 20 Wealth CREATORS of 2018

S. No Name Symbol Industry Last Price Market Cap 1-Yr Chg (%)
1 HEG HEGL Electronic Instr. & Controls 3675.35 155.86B 83.82
2 L&T Technology Services LTEH Construction Services 1687.05 171.74B 71.22
3 Larsen & Toubro Infotech LRTI Software & Programming 1695 291.26B 57.67
4 Adani Enterprises ADEL Coal 158.55 175.67B 53.92
5 Bata India BATA Footwear 1109 144.13B 47.74
6 Tata Consultancy TCS Software & Programming 1918.5 7130.75B 44.97
7 Bajaj Finance BJFN Consumer Financial Services 2564.9 1497.28B 43.9
8 Tech Mahindra TEML Software & Programming 697.9 684.05B 41.43
9 Indiabulls Ventures INDB Investment Services 379.85 235.61B 41.22
10 MindTree MINT Computer Services 837.7 139.19B 39.69
11 Nestle India NEST Food Processing 10923.35 1064.11B 38.56
12 Mphasis MBFL Software & Programming 1018.15 187.77B 38.52
13 Jubilant Foodworks JUBI Restaurants 1218.95 173.76B 38.14
14 Abbott India ABOT Biotechnology & Drugs 7466.25 157.83B 34.82
15 Avenue Supermarts AVEU Retail (Grocery) 1545.75 1031.01B 34.28
16 Ipca Laboratories IPCA Biotechnology & Drugs 801.85 101.97B 33.6
17 Divi’s Labs DIVI Biotechnology & Drugs 1447.15 392.45B 32.77
18 Hindustan Unilever HLL Personal & Household Prods. 1784.65 4009.29B 31.56
19 Adani Power ADAN Electric Utilities 50.8 194.66B 31.27
20 Britannia Industries BRIT Food Processing 3100.55 751.53B 30.64

 

HEG was the biggest wealth creator in the large-cap segment this year. This stock gave a return of over 83% in 2018. Currently, HEG is trading at a share price of Rs 3,675. Surprisingly, this stock was also one of the biggest winners in 2017. (Quick Note: The stock of HEG was hovering at just Rs 160 during the start of January 2017).

Next, L&T Technology services (+71%) and Infotech (+57%) –both have performed well followed by Adani Enterprises and Bata India. TCS has also given a return of over 44% this year.

A few other popular winners in this list are Bajaj Finance, Tech Mahindra, India bull ventures, MindTree, NESTLE and Avenue Supermart (DMart).

Top 20 Wealth Destroyers of 2018

S. No Name Symbol Industry Last Price Market Cap 1-Yr Chg (%)
1 Vodafone Idea VODA Communications Services 37.35 335.36B -62.89
2 Tata Motors DV Ltd TAMdv Auto & Truck Manufacturers 94.15 559.20B -60.83
3 Tata Motors TAMO Auto & Truck Manufacturers 172.5 559.20B -59.12
4 NBCC India NBCC Construction Services 54.15 100.86B -57.36
5 Motherson Sumi Systems MOSS Auto & Truck Parts 161.55 534.49B -57.13
6 Punjab National Bank PNBK Regional Banks 76.7 284.07B -56.41
7 CBI CBI Regional Banks 35.15 106.22B -53.54
8 Bharat Electronics BAJE Aerospace & Defense 87.95 215.91B -53.34
9 Aditya Birla Capital ADTB Consumer Financial Services 97.05 216.36B -48.12
10 Mangalore MRPL Oil & Gas Operations 72.8 131.23B -43.24
11 Hindustan Petroleum HPCL Oil & Gas Operations 246.3 381.94B -42.63
12 Sun TV Network Ltd SUTV Broadcasting & Cable TV 576.95 233.42B -42.28
13 Bharti Airtel BRTI Communications Services 309.1 1233.18B -41.52
14 Yes Bank YESB Regional Banks 182.3 424.05B -41.22
15 Bank of India BOI Regional Banks 100.9 171.04B -41.05
16 New India Assurance THEE Insurance (Miscellaneous) 183.9 306.93B -40.15
17 Steel Authority SAIL Iron & Steel 51.95 218.50B -39.2
18 Indian Bank INBA Regional Banks 238.4 115.26B -39.15
19 Emami EMAM Personal & Household Prods. 401.85 187.63B -38.67
20 Vedanta VDAN Metal Mining 196.4 745.40B -37.96

 

Interestingly, Vodafone Idea is the biggest loser in this list and has lost a market price of over 62% in this year. The stock was trading at a market price of Rs 104.60 at the start of the year, and currently, its share price is fluctuating at Rs 37.35.

Tata Motors is yet another beaten company on the street. Both fully paid ordinary shares and DVR are down by around 60% in this year. This stock is continuously declining for around two years, since it made its high of Rs 578.70 in September 2016. Currently, Tata motors ordinary shares are trading at a price of Rs 172.5.

A few of the other popular losing stocks in this list are NBCC, Motherson Sumi Systems, PNB, CBI, Bharat Electronics, Aditya Birla Capital, Mangalore Petronet, HPCL, Bharti Airtel and YES BANK.

Also read:

Closing Thoughts

Although it’s good to monitor the yearly returns of the companies, however, looking at the performance of stocks just for a year is not enough. It is the long-term returns of the stocks that matter the most for the wealth creation of shareholders.

Besides, a lot many big companies on the list are trading at a decent discount currently. Whether the losing companies mentioned above will continue to decline further or bounce back will depend on their future performances.

The share investors should consider these as opportunities to invest in amazing businesses at a fair value. Happy Investing.

Disclaimer: The stocks listed in this post should not be considered as recommendations. Please study the companies carefully or take the help of a financial advisor before investing.

December 26, 2018 News, Stocks No comments yet

Long-Term Capital Gain Tax- Simplified [Budget 2018-19]

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.

Source: http://www.incometaxindia.gov.in/Lists/Latest%20News/Attachments/216/FAQ-on-LTCG.pdf

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.

Also read: Different Charges on Share Trading Explained- Brokerage, STT & More

Calculation of long-term capital gain:

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

  1. Highest price on Jan 31st Jan 2018 (200)
  2. 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.

Further, the actual selling price is also Rs 150.

Overall, capital gain= Rs 150- Rs 150 = 0 (NIL).

Here are the four different scenarios to explain the situation of long-term assets and their capital gains (as described in Income tax departments latest release on LTCG tax)

In all the given scenarios,

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

Long-Term Capital Gain Tax - Simplified

 

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

Also read: How Much Can a Share Price Rise or Fall in a Day?

Conclusion:

Here are the key takeaways from this post:

  • 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:

  1. Shares sold on or before 31st March 2018 —> NIL
  2. 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)

(Image source: CharlesNGO)

That’s all. I hope this post on the long-term capital gain tax is useful to the readers.

Also read: What are the capital gain taxes on share in India?

If you have any questions regards LTCG Tax, feel free to comment below. #HappyInvesting

February 6, 2018 Investment Basics, Market, News 10 comments
Indian Stock Market Holidays 2018

Indian Stock Market Holidays 2018

Indian stock market holidays 2018:

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:

S.NO. Holidays Date Day
1 Republic Day January 26, 2018 Friday
2 Mahashivratri February 13, 2018 Tuesday
3 Holi March 02, 2018 Friday
4 Mahavir Jayanti March 29,2018 Thursday
5 Good Friday March 30,2018 Friday
6 Maharashtra Day May 01,2018 Tuesday
7 Independence Day August 15,2018 Wednesday
8 Bakri Id August 22,2018 Wednesday
9 Ganesh Chaturthi September 13,2018 Thursday
10 Muharram September 20,2018 Thursday
11 Mahatma Gandhi Jayanti October 02,2018 Tuesday
12 Dussehra October 18,2018 Thursday
13 Diwali  Laxmi Pujan* November 07,2018 Wednesday
14 Diwali Balipratipada November 08,2018 Thursday
15 Gurunanak Jayanti November 23,2018 Friday
16 Christmas December 25,2018 Tuesday

Source: BSE India

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).

Also read: How To Select A Stock To Invest In Indian Stock Market For Consistent Returns?

Tags: Indian stock market holidays 2018, stock market holidays 2018, trading holidays 2018, bse holidays 2018, NSE holidays 2018,  stock market holidays 2018 India
December 19, 2017 Market, News No comments yet
Best seller author Prasenjit Paul on stock investing

Exclusive Interview: Best seller author Prasenjit Paul on stock investing

Exclusive Interview: Best seller author Prasenjit Paul on stock investing

Hello investors. Today we have a very special guest with us.

He is an investor, entrepreneur, and a best-selling author. His book ‘How to avoid loss and earn consistently in the stock market?’ is currently the best-selling book on Amazon.

I would like to welcome- Prasenjit Paul!!

Let me give you a brief introduction about Prasenjit. He is a software engineer by qualification with bachelors of engineering degree from IIEST, Shibpur.

He started investing from an age of 18. Due to his passion for stock market, he left his job at IBM on the first day to pursue his dreams in the investing world. Fast forward few years, and today he is running a successful equity advisory firm- Paul asset with clients from over 18 countries.

Guys, I would like you to join in the inspiring journey of Prasenjit Paul.

Q. Hi Prasenjit. My first question to you is an obvious one- How did you enter the world of investing?

While I was 18, my father told me about the stock market. After that reading books like “Rich Dad Poor Dad” and few others made me determined for taking the stock market very seriously.

Since then, I had spent my entire college life learning various aspects of the stock market. Although I was pursuing B. Tech in Information Technology, still I had completed around 25-30 books and countless websites related to the stock market.

Even I had started offering equity advisory service on Trial basis while I was in the final year. Thus even before my career took off in the IT field, I was ready for the career in the stock market solely through self-learning.

Q. Why did you quit IBM on your first day?

I had accepted the offer from IBM just to gather an idea of the working culture of the corporate world.

Once I interacted with few employees and visiting the office I was sure that I couldn’t give my 100% to an IT job. Moreover, even after spending in an IT job for 5-10 years, I didn’t foresee financial freedom or any meaningful reward.

Thus, I made my mind to take the risk of quitting fixed salary routine.

It was a very tough choice because of two reasons. Firstly, my parents, relatives and others were never in support of business instead all of them favoured corporate job. Secondly, during that time, I was not earning even fraction of the amount that IBM was offered.

However, I took that risk and later it paid off very well!

Q. When did you start ‘Paul Asset’ and how long were you running the business before you started paying yourself?

I had an edge because I started Paul Asset during my college days and during those days I have no such compulsion of paying myself.

Even after leaving college I had no liabilities like EMIs, paying to parents, rent etc. So, even with any amount of money, my target was to just stick to the target.

I was confident that with true dedication sooner or later your hard work pays off. So, the point is the earlier you start, the higher would be the reward.

Every aspiring entrepreneur should begin the journey during their teenage or during the early twenties. With the growing age, it becomes difficult.

Q. Walk me through the step-by-step process that you went through after quitting your job, to get to where you are today?

Actually, I had started the journey much before quitting my job.

Apart from Paul Asset, I had even attempted two other business ventures during college days and failed badly. My target was to become an entrepreneur so within the college life itself I had attempted various ventures and later Paul Asset clicked while rest others failed.

So, the point is to keep trying. No matter how talented you are, you can’t be successful in business with just one attempt. I just stick to the basics. Irrespective of failures, setbacks, depression, monetary loss, you have to keep trying with full dedication while keeping morals intact.

Sooner or later Success will be yours.

Q. When did you decide to write a book? Tell us about your journey from a novice to the author of the best-selling book on stock market investing.

I had purchased the domain www.paulasset.com in the year of 2011 while I was in the 2nd year of my Engineering. Initially, the target was to write blogs on the Stock Market and monetise via Google Adwords.

Fortunately, Google rejected few times while I submitted my blog and that inspired for starting subscription-based advisory service.

Today, the advisory revenue is so big that I can’t even consider Google Adwords. Inspite of rejection from Google, I noticed that almost all of my readers liked my writing style. That inspired me writing a book to reach the larger audience.

It took me more than two years to complete the book “How to Avoid Loss and Earn Consistently in the Stock Market”. The way people liked the book was also beyond my imagination.

Since the last few years daily on average 50+ copies are being sold!

Writing a book is very difficult because you need months-long concentration and patience, unlike a blog post that can be completed in one day itself.

After the massive success of my first book, I am also working on the second book (not directly related to the stock market but related to the Money). However, due to my current schedule, I can rarely concentrate over a very long duration of few weeks and be realising the real challenge of writing books!

If you haven’t checked out his book ‘How to avoid loss and earn consistently in stock market’ yet, here is a link on amazon. I personally recommend you to read this book if you want to learn investing in Indian stock market from scratch.- Kritesh

Q. How do you start your workday? What’s like a day in the world of an investor?

I have a relaxed work schedule.

Although with the growing business, I have to look after so many things, work on multiple things simultaneously still it never created pressure on me. I never keep sitting in front of trading terminal.

Daily price fluctuation doesn’t affect me at all.

I start my day with reading newspaper or magazines and then as usual. What I learnt from my own experience is that to become a successful investor you must have a calm and cool head.

Every day you will come across so many news, so many contradicting views. Many times your stocks won’t perform, you would stare at loss. In spite of all those, you have to keep your basics intact.

I also idolise MS Dhoni and try learning a lot from his temperament.

Q. What’s your investment strategy?

I prefer growth over value. While you are investing in one of the world’s fastest-growing major economy like India, you must have to put higher focus on the growth over value.

I generally prefer bottom-up analysis with long-term investing approach. I like companies where market size is huge enough to maintain the high growth rate with free cash flow generation while keeping light balance sheet.

And I never attempted short term, intraday trading, Futures and Options etc. The reward and peace of mind from long-term investing is sufficient enough to ignore any short term options.

Q. Who do you admire the most in stock market world?

I can’t take one or two names. I admire and try to learn a little bit from many renowned personalities including sports person, businessman, authors and even politicians. There is something to learn from any successful persons in any field.

Among Indian investors, I admire Ramdeo Agarwal, Vijay Kedia, Porinju Veliyath and Basant Maheswari.

Outside India, I have deep respect for Warren Buffet, Charlie Munger, Peter Lynch and many others.

Having said that I never attempted following any particular investor’s principles because I know I can’t be another Warren Buffet or Ramdeo Agarwal. So, I must have to be myself, and that is very important. Thus, I admire many successful personalities, try learning a little bit from all of them and finally be myself.

Related post: 3 Insanely Successful Stock Market Investors in India that you need to Know.

Q. What are your favourite books on stock market?

Again, I can’t name any single book. I try to keep learning from many books, magazines, websites etc.

Few of my favourites books are, “One Up on Wall Street“, “The Intelligent Investor“, “The Little Book of Valuation“, “Dhando Investor” etc.

Although not directly related to the stock market but the book “Rich Dad Poor Dad” motivated me a lot for starting my investment journey during college days. I strongly recommend the book “Rich Dad Poor Dad” to all youths.

Even outside stock market, I owe much of my success to the authors like Robin Sharma, Shiv Khera, Robert Kiyosaki and many others.

Also read: 10 Must Read Books For Stock Market Investors.

Q. What is still your biggest challenge?

The biggest challenge is to maintain the performance and reputation.

Since 2012, the brand Paul Asset helped many retail investors for the wealth creation. It makes me happy while I come to know that we helped many investors in reaching their personal goals like house, car, child’s education, marriage etc.

The biggest challenge is to maintain our own past performance for the next many decades. It is easy to score a century on three consecutive matches but very difficult to maintain 50+ batting average over few decades long Cricket career. Success is a journey, not a destination.

Q. If a newbie investor walked up to asking for your advice and you only had a few minutes to give ‘em your best tip, what would it be?

Practice, Practice and Practice.

You can’t be a successful investor just by reading 2-3 books. If you do, then it is only you are lucky in few particular instances, and it can’t be repeated, i.e. you can’t maintain the consistency.

Remember from Nursery to Graduation you have spent 18+ years to become successful in your current profession. So, there is no shortcut. With the advent of internet, everything at your fingertips but you have to work hard and give time to master any art.

Q. What’s next for you?

From the beginning, my target was to add values while keeping morals intact. Name, fame and money would automatically follow. So, the next is also value creation keeping the morals intact. Everything else would automatically follow.

Q. Thank you so much Prasenjit, for sharing your valuable time and knowledge. Anything else that you would like to share with our readers?

Keep doing whatever you believe for yourself. Successful journeys are always filled with obstacles. Successful peoples are not Lucky. Instead, Luck is attracted towards them for their honest dedication and hard work.

Whatever you are today is the result of your last 5-10 years. So, if you really want a better future for yourself on any field, make sure to dedicate at least 5-10 years while keeping morals intact. Good Luck!

———————————————————

Thank you so much Prasenjit for sharing your time. Your journey is truly inspiring for all the new and old investors.

Let me quickly summarize few of the learnings from Prasenjit Paul:

On life and goals:

  • Follow your dream.
  • Start as early as possible.

On investing:

  • Many times your stocks won’t perform, you would stare at loss. In spite of all those, you have to keep your basics intact.
  • Prefer growth over value. While you are investing in one of the world’s fastest-growing major economy like India, you must have to put higher focus on the growth over value.
  • Avoid short term, intraday trading, Futures and Options etc. The reward and peace of mind from long-term investing is sufficient enough to ignore any short term options.
  • Finally, Practice, Practice and Practice.

That’s all. I hope this interview is encouraging for all our readers to take their next step in the investment world.

Also read: How to Invest in Share Market? A Beginner’s guide

Do comment below if you have any questions. Will love to answer. 

#Happy Investing.

Tags: Prasenjit paul, how to avoid loss and earn consistently in stock market, interview with Prasenjit Paul, Paul asset, Prasenjit paul asset advisory firm
November 16, 2017 Books, News 5 comments
SENSEX IN LAST 30 YEARS

75x Returns by Sensex in last 30 Years of Performance.

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.

Sensex in last 30 years of performance

Chart Source: https://tradingeconomics.com/india/stock-market

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.

Also read: SIP or Lump sum – Which one is better?

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.

Also read: 10 Must Read Books For Stock Market Investors.

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:

Buy Right, Sit Tight.

Also read: How To Invest Rs 10,000 In India for High Returns?

That’s all for this post about past performance of Sensex in last 30 years. I hope this insight is helpful to the investors.

Do comment below what are your expectations from Sensex in the upcoming year of 2018?

November 3, 2017 Investment Basics, Market, News No comments yet
Most Successful Stock Market Investors in India cover

3 Insanely Successful Stock Market Investors in India that you need to Know.

3 Insanely Successful Stock Market Investors in India that you need to Know– My blog ‘Trade brains’ recently got listed in the top 100 stock blogs and websites for stock traders at feed spot. Hurray!! And in this cheerful occasion, I decided to write something different. Something that every stock investors in India need to know.

And then this idea came to my mind. All those who enter the stock market in India has same dreams. They all want to become absurdly wealthy like few of the known richest investors in the world.

However, I strongly believe that if you want to learn something new; then it’s best to learn from one who has already done it.

If you want to become successful in the stock market, then you should learn from the lives of these iconic stock market investor. How was their journey, what principles they follow, how long they have been investing? etc. So, today I decided to write a post about the ones who are insanely successful in Indian stock market.

How many of them do you know?

Everyone who enters the stock market world knows about Warren Buffet. The greatest investor of all time and one of the richest person in this world who made his fortune by investing in stocks. You might also have heard about Benjamin Graham, Charlie Munger, Peter Lynch etc

But do you know about the preposterously successful investors who made tons of money by investing in Indian stock market?

Yes, I can hear the name in your mind. Rakesh Jhunjhunwala. The name which comes instantly on the mouth of every Indian when we hear the term ‘Rich-Indian-stock-market-investor’. But how much do you know about him? And what about the other successful stock market investors in India?

In this post, I am going to tell you about 3 insanely wealthy stock market investors in India. Further, I will recommend you to read this post till the end as I have kept a surprise bonus there. So, be with me for the next 8-10 minutes to learn all about the most successful stock market investors in India.

3 Insanely Successful Stock Market Investors in India

Rakesh Jhunjhunwala

Successful Stock Market Investors in India

Net worth: 2.4 Billion USD
Born: 5 July 1960 (Age 57), Mumbai India
Education: Chartered Accountant
College: The University of Mumbai, The Institute of Chartered Accountants of India (ICAI)
Occupation: Owner of rare enterprises, investor, Film Producer & trader

Rakesh Jhunjhunwala, also known as, “India’s Warren Buffet” and “The Big Bull’, is one of the most renowned and successful stock market investors in India.

The son of an income tax officer, Rakesh joined the stock market after completing his degree as a chartered accountant. Starting with the initial investment of only Rs 5,000, currently, he is sitting on a huge net worth of around Rs 15,000 crores.

Jhunjhunwala today manages the privately owned asset management firm “RARE Enterprises”. The name RARE is derived from the initials of his name and his wife’s name. That is- ‘Ra’ from his name (Rakesh) and ‘Re’ from his wife’s name (Rekha). He is also the chairman of Aptech Limited and Hungama Digital Media Entertainment Pvt. Ltd.

From the very start, Rakesh Junjhunwala’s ‘risk and reward’ taking ability along with impressive imagination & wisdom earned him great profits.

His first ever large income was from selling 5000 shares of Tata Tea which he had previously bought for Rs. 43 per share and selling them at Rs. 143. His later career was marked by his buying of six crore shares of Titan in 2003 at an average price of around Rs 3. The stock is still in his portfolio and currently trading at Rs 530.

Rakesh Jhunjhunwala follows the ideology of Warren buffet and believes in long-term investment. He strongly advocates the growth of India and it’s rising economy. Mr. Jhunjhunwala is also confident in learning from mistakes. He often says- ‘Mistakes are your learning friends. The idea is to keep these mistakes small.’

According to Forbes 2016, Rakesh Jhunjhunwala is India’s 53rd richest person. 

Also read: Forbes- Rakesh Jhunjhunwala
Rakesh Jhunjhunwala Story
Rakesh Jhunjhunwala Success Story from 5k to 1.8$ Billion
5 Secretes that make Rakesh Jhunjhunwala Successful Investor
Rakesh Jhunjhunwala- The Inspiring story & philosophy of India’s most successful InvesTrader

Source: FinnovationZ.com

Radhakishan Damani

Successful Stock Market Investors in India

Net worth: 11.7 Billion USD (-as of May’2018)
Age: 61
Occupation: Investor, Stockbroker, Trader and the Founder & Promoter of Dmart

Radhakishan Damani, also known as ‘Mr white and white’, because of his simple dressing- white shirt and white trousers, is an investor and owner of D-mart. He is also the mentor of billionaire investor Rakesh Jhunjhunwala. RK Damani is known for his low profile and he rarely makes an appearance in public events or press conferences.

On 21st March 2017 i.e. the listing day of Avenue supermart (parent company of D-mart), the stock price rose more than double, from the offer price of Rs 299 and ended up 116% upwards to Rs 648. In the IPO of Avenue Supermart, RK Damani made around Rs 6100 crores in just two days.

RK  Damani owns 52% stake in Avenue Supermarts, and Bright Star Investments – his investment company, holds another 16% stake.

RK’s journey in Indian stock market is truly inspiring. He was not always involved in the stock market. He started his career as a trader in ball bearing, with no intentions to enter the stock market. However, his future has something else reserved for him.

“RK Damani entered the market at an age of 32.”

At an age of 32, post his father’s death, RK was forced to close down his ball bearing business and had to join his brother in the stockbroking business, which was inherited from their father.

RK Damani had no idea of what to do in the stock market then. His knowledge of the stock market was very limited and can be considered next to zero when he entered. He made few mistakes initially by speculating the stock prices. However, he soon understood that the market is a heaven for those who want to make a great fortune in life.

As he was involved in stock broking, he also understood that he can’t make lots of money just by watching other people invest. Finally, he started investing for the long term. Gradually, his judgment began getting right, and within the next couple of years, he was standing as one of the most successful investors in the market.

RK Damani’s strategy is quite simple- Invest for the long term, like 5 to 10 years. RK always sees the future prospects of the company before investing and invests only if the product has a potential far ahead in the future.

Also Read: Forbes- Radhakishan Damani
DMart’s founder Radhakishan Damani: The unlikely retail billionaire
Radhakishan Damani: Man with the Midas touch in the stock markets

Source: LKKN Learning Lessons of Life

Ramesh Damani

Successful Stock Market Investors in India

Net worth: 8000 Crores (1.24 Billion USD)
Age – 61
Education: HR College, Mumbai (Bachelor’s degree in Commerce)
California State University (Master’s Degree in Business Administration)
Occupation – Founder of Ramesh s Damani Finance Pvt Ltd

Ramesh Damani, the investment guru and one of the most successful stock market investors in India, started his journey to riches in 1990’s when Sensex was 600 points. He holds a bachelor’s degree in commerce from HR College, Mumbai and a master’s degree in Business Administration from California State University.

Ramesh Damani works at privately owned Ramesh s Damani Finance Pvt Ltd.

The son of a successful stock investor, Ramesh Damani became a member of the Bombay Stock Exchange(BSE) in 1989. Initially, Ramesh planned his career as a stockbroker. However, later he started enjoying picking winning stocks and switched to become a long-term investor.

Ramesh Damani’s first famous investment was ‘Infosys’. Coming from a techie background in the US, he knew that Infosys has great future potentials. So, when Infosys became public in 1993, he invested Rs 10 lakhs in it. By 1999, this investment has given him more than 100 times return.

“I learned that just because a stock doubles, it is not a reason to sell it.”- Ramesh Damani

The investment philosophy of Ramesh Damani is easy and simple to understand. He is a long-term investor and suggests not to invest for short-term gain. Further, he advises everyone to make an exit strategy clear before making an investment in any stock. He further adds that the economy of a market is hard to predict; however if you have researched the stock carefully, and had made a good strategy, then you can easily make fortunes in the stock market.

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.

Also Read- Ramesh Damani: The Stock Picker Who Could’ve Become A Billionaire

Source: The TrakInvest Show

Bonus:

Raamdeo Agrawal

Successful Stock Market Investors in India

Networth – 1,200 Cr
Age -60
Occupation: Co-Founder- Motilal Oswal Financial Services Ltd

Raamdeo Aggrawal, the co-founder of Motilal Oswal Group, is another most respectable stock market investor in India.

He is famous for investing in the legendary stock of HERO HONDA in 1995 when HERO was a small cap with a market capitalization of only 1000 crores. Raamdeo Aggrawal invested around Rs 10 lakh in the shares of the two-wheeler manufacturer at Rs 30 apiece, and held on to them for the next 20 years, till the share price rose to Rs 2,600 apiece. Today the market cap of HERO is above 73,000 crores.

During the last 30 year career, Raamdeo Aggrawal investing strategy is based on QGLB: Quality, growth, longevity and bargain value of a company.

Like most great investors, Raamdeo Aggarwal too follows the principles of long-term investment. Among his favorite books to read are- ‘One Up on Wall Street‘ by Peter Lynch and ‘The Intelligent Investor‘ by Benjamin Graham. Further, he is also excited by Michael Porter’s ideas on the competitive structure.

“After 30 years, I understood economic moat is the mantra of investing” -Raamdeo Agrawal

Raamdeo Agrawal suggests the investors not to be driven solely by market trends and advice to research the stock intelligently before investing.

Also read: Raamdeo Agrawal’s crorepati formula: Invest Rs 10,000 a month for 25 years
Raamdeo Agrawal Success Story Journey from Zero to 1000 Cr

Source: Motilal Oswal Securities

As promised, here is the bonus section. List of few other best stock market investors whom you should know. Further, I have added a link to each of the investors so that you can read further.

Porinju Veliyath, 55
Investor, Founder- Equity Intelligence India Pvt Ltd
Nemish Shah, 62
Co-founder of ENAM
Chandresh Nigam, 48
Managing Director-CEO, Axis Mutual Fund
Chaitanya Dalmia, 42
CIO, Renaissance Group
Chandrakant Sampat, 89
Individual investor
Parag Parikh, 63
Chairman & CEO, PPFAS
Dolly Khanna,
Investor, Homemaker
Sanjay Bakshi, 51
Managing Partner, ValueQuest Capital LLP
Samir Arora, 55
Founder, Helios Capital
Saurabh Mukherjea, 41
CEO (Institutional Equities),  Ambit Capital
Anoop Bhaskar, 50
Head – Equity, UTI Mutual Fund
R Srinivasan, 48
Head (EquitIES), SBI Mutual Fund

Also Read: Forbes India: Wealth Wizards: Top 20 Investors Share Their Philosophy

That’s all. I hope this post- “3 Insanely Successful Stock Market Investors in India that you need to Know” is helpful to the readers. Please share the post if you liked it. Happy Investing.

Further, do comment below who is your favorite Indian stock market Investor?

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!

Tags: Most successful stock market investors in India, big investors in indian stock market, top individual investors of india, india best three investors, biggest investors in india, top 3 Successful Stock Market Investors in India, who is the Successful Stock Market Investors in India, successful stock market investors in India

July 7, 2017 INDIAN BULLS, Investment Basics, News 27 comments

BSE initial public offering in the market on 23 January at Rs 805- 806

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

Know more here.

January 21, 2017 Market, News No comments yet

TCS CEO Chandrasekaran appointed the Chairman of Tata Sons

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.

January 13, 2017 Market, News No comments yet

PM Modi Inaugurates the India International Exchange (INX) at GIFT city.

For an auspicious day for the India’s financial sector, Prime minister Narendra Modi inaugurated the India International Exchange (INX) located at the International Financial Services Centre (IFSC), Gujrat International Finance tech –city (GIFT City), Gandhinagar on Monday, Jan 9, 2017.

The INX is a owned subsidiary of Bombay Stock Exchange (BSE) Ltd and is expected to start trading from 15th January 2017. The new exchange will greatly improve the service and quality of transactions across the world.

Here are 5 important updates about India International Exchange (INX):

1) INX at will be open for trading for 22 hours every day. The trading will open daily at 4 am (when exchanges in Japan opens), and close at 2 am (when exchanges in the US closes).
2) World’s fastest international exchange: India INX will be the fastest international exchange in the world with a median trade speed of four microseconds, in terms of order response time,. This is way better than the second ranked Singapore International exchange (60 microseconds) and domestic BSE’s exchange at Mumbai (6 microseconds).

3) The India INX can trade securities and products other than Indian rupees. The securities and products that could be traded on the India INX are: equity shares of companies incorporated outside India, debt securities, depository receipts, index based derivatives, currency and interest rate derivatives, commodity derivatives and similar other securities.

4) A highly robust risk management system is in place to prevent money laundering and market manipulation.

5) A huge investment of Rs 500 Crore will be invested by the Bombay stock exchange in the upcoming three years. Further, INX will begin operations with 100 employees, most of whom have relocated from Mumbai, apart from local and foreign personnel.

January 10, 2017 News No comments yet
Trade Brains Stock Market Learning app