Investing in Indian Stock Market
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The Indian stock market is home to the oldest exchange in Asia. In India, the Bombay Stock Exchange (BSE) is the most powerful and largest trading center. The exchange includes numerous smaller exchanges with recognition of regional parity. So it is better to have some knowledge on the Indian economy and the BSE before effectively investing in Indian Stock Market.
The Indian stock markets were very volatile from mid June to mid July 2009. SENSEX is the benchmark index of stocks observed by the regulatory authorities according to the criteria fixed by the authorities. The Indian benchmark index is around 13,500 to 14,000 points.
Market analysts believe that the benchmark index can touch 21,000 in the 8 to 15 months which is an increase of 40%. This is the reason why institutional investors are getting interested in the stock market. The market was influenced by the elections and budget during May and June 2009. But it is expected that the market will be positive and gradually reach the 21,000 level.
Investment in the Indian Stock Market is quite easy. However, you will need an Indian Demat Account first. Many banks and private agencies offer this service and will open an account with NSDL. After your account gets opened, you can start investing.
It may not be an easy task while investing in Indian Stock Market as there are over 5000 companies listed in the BSE and NSE (National Stock Exchange). Making a choice of the company for buying shares is an important thing to do. There have been consistent better returns from stocks listed in the Indian stock market than other world stock markets.
After deciding on the stocks, you should have a keen sense of the pulse of the markets. Or you can invest in long term stocks for a good return on the investment. You need to select the stock carefully for investment and know the valuations at which you can buy and sell a stock. You should not think much about losses and profits. Growth stocks can provide consistent returns while rumors and tips may not be of much help. Only research and news can help you.
To know about your investment strength in India, check the BSE 200 index. The index deals with the 200 best-performing Indian businesses on a regular basis. Check the individual businesses in your choice of industrial sector for potential investments.
You can even go for a technology stock from the BSE TECk index. India has a booming computer development and biotechnology sector which is very helpful for investors.
Through the BSE Small-Cap Index, you can search for growing companies having small capital. The index has numerous new companies having a low fund and seeking investors to grow. There is a lesser risk, if you can invest in a company with a lower share price.
You can keep a track of your stock progress online through the Bombay Stock Exchange. The BSE index provides information every 15 seconds to business-television networks, local brokers and international websites.
You should be wise in investing in the Bankex index which checks India's top 12 banks' progress and you can make investments in their growth.
The strength of the Bombay exchange can be determined by studying the free-float market capitalization measure. It takes 30 stocks which represent the Indian economy and multiplies the stock numbers with stock prices and a predetermined index number.
If you are thinking of investing in the Indian stock markets, you can try the oil and gas exploration segment as you will be benefitted with the rise in oil prices. You should select certain segments and fields which will have the best growth and not be negatively affected by inflation and recession. Oil and gas, healthcare, infrastructure and cement are some of the industries which will be benefitted in a few years.
Market analysts believe that the benchmark index can touch 21,000 in the 8 to 15 months which is an increase of 40%. This is the reason why institutional investors are getting interested in the stock market. The market was influenced by the elections and budget during May and June 2009. But it is expected that the market will be positive and gradually reach the 21,000 level.
Investment in the Indian Stock Market is quite easy. However, you will need an Indian Demat Account first. Many banks and private agencies offer this service and will open an account with NSDL. After your account gets opened, you can start investing.
It may not be an easy task while investing in Indian Stock Market as there are over 5000 companies listed in the BSE and NSE (National Stock Exchange). Making a choice of the company for buying shares is an important thing to do. There have been consistent better returns from stocks listed in the Indian stock market than other world stock markets.
After deciding on the stocks, you should have a keen sense of the pulse of the markets. Or you can invest in long term stocks for a good return on the investment. You need to select the stock carefully for investment and know the valuations at which you can buy and sell a stock. You should not think much about losses and profits. Growth stocks can provide consistent returns while rumors and tips may not be of much help. Only research and news can help you.
Steps for Indian Stock Market investments
First you can register yourself with an investment firm or stockbroker who has links to the Indian stock market. The main thing to remember is that the financial assistant should have market experience where you are investing the money. Though stockbrokers can be expensive, they can respond to individual stocks queries quickly.To know about your investment strength in India, check the BSE 200 index. The index deals with the 200 best-performing Indian businesses on a regular basis. Check the individual businesses in your choice of industrial sector for potential investments.
You can even go for a technology stock from the BSE TECk index. India has a booming computer development and biotechnology sector which is very helpful for investors.
Through the BSE Small-Cap Index, you can search for growing companies having small capital. The index has numerous new companies having a low fund and seeking investors to grow. There is a lesser risk, if you can invest in a company with a lower share price.
You can keep a track of your stock progress online through the Bombay Stock Exchange. The BSE index provides information every 15 seconds to business-television networks, local brokers and international websites.
You should be wise in investing in the Bankex index which checks India's top 12 banks' progress and you can make investments in their growth.
The strength of the Bombay exchange can be determined by studying the free-float market capitalization measure. It takes 30 stocks which represent the Indian economy and multiplies the stock numbers with stock prices and a predetermined index number.
If you are thinking of investing in the Indian stock markets, you can try the oil and gas exploration segment as you will be benefitted with the rise in oil prices. You should select certain segments and fields which will have the best growth and not be negatively affected by inflation and recession. Oil and gas, healthcare, infrastructure and cement are some of the industries which will be benefitted in a few years.
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