Month: December 2016

Everything You Wanted to Know about India’s Two Biggest Stock Exchanges

India is one of the top emerging economies of the world. India’s robust economy withstood the effects of the 2008 financial crisis, thanks to its strong financial roots.

A major indicator of India’s economic prowess is its share markets a.k.a. stock markets. They have helped commuters and companies alike. Companies list themselves to raise funds and people invest to make money, the stock markets have changed many a life.

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Most of India’s trading is done at two stock exchanges, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Although both are located in Mumbai, India, they are often confused by many to be similar or the same. They are not. The BSE and NSE are quite different. Read on to know them.

Bombay Stock Exchange (BSE) National Stock Exchange (NSE)
Established in 1882, it’s Asia’s oldest stock exchange and 11th largest in the world in terms of market capitalization. Established in 1992, it’s India’s largest stock exchange in terms of number of trades and daily turnover.  It’s the world’s 12th largest stock exchange.
More than 5,500 companies are publicly listed on the BSE. More than 1500 companies are publicly listed on the NSE
BSE’s market capitalization (total market value) is $1.43 trillion. NSE’s market capitalization is $ 1.41 trillion.
BSE’s flagship index is known as Sensex which shows the 30 top trading companies. NSE’s flagship index is known as NIFTY and shows the 50 most traded companies.
The BSE On-Line Trading (BOLT) was first introduced in 1995 a few years after NSE introduced modernized trading system. NSE was the first share market to introduce modernized trading system in 1992.
BSE’s reach is limited to certain areas and isn’t known by all. NSE’s reach is national and is known by all across the country.
Companies such as Reliance Industries, TCS, and HDFC Bank trade on BSE. (These are top companies based on market capitalization) Companies such as ONGC, ITC, and SBI trade on NSE.

(These are top companies based on market capitalization)

The two bourses are a good indication of the progression of India’s financial sector. Many people have invested in these markets and have earned good profits. However, a lot of people invest and trade without proper knowledge and suffer heavy losses.

If you are interested in trading at these two share markets, you will need a good broker.  Brokers are members of these markets and are licenced to trade at these markets. They trade on your behalf and charge a fee for it. A good broker to start with would be Sharekhan, they have a lot of franchisees with excellent research data and superb brokers who help you make the right trade.

5 Ways to keep your Heart Smiling

In the frenzied lifestyle that most of us lead today, it is absolutely essential to take care of the one organ that keeps us going. Our heart that runs along with us just as we do should not be taken good care of. Some of the activities such as eating junk food, long work hours, drinking, smoking, makes the heart prone to various diseases. Did you know that the human heart beats about 2.5 billion times during an average time span of 66 years? Such functioning certainly requires enough nourishment. Here are a few easy ways to keep your heart, strong and healthy.

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Stress

Each time that we take stress, it leads to induced heart rate and an increase in blood pressure. This results in additional demand for oxygen which can lead to chest pain. Therefore, it is important not to take stress and learn how to manage it.

Weight

Keep your weight under check as extra weight can increase cholesterol level, risk of artery disease, diabetes, and blood pressure. Therefore, keep your Body Mass Index to the optimal levels.

Healthy Diet

The best way to keep your heart healthy is to be aware of what is on your plate. Consume fresh fruits, green leafy vegetables, and whole grains. Do not eat anything that is fried or oily in nature. Eat around 30gms of raw garlic every day.

Exercise

It is absolutely essential to exercise every single day to keep your heart healthy. Ensure that you engage in some form of physical activity for 30 minutes-45 minutes. It helps lower blood pressure and keeps arteries flexible.

No alcohol, no smoke

There is nothing better than keeping smoking and alcohol consumption at bay when it comes to one’s health. They only disrupt the smooth functioning of the heart and can trigger blood pressure levels, lead to irregular heart beat and strokes.

There are a number of doctors in India who are known for their expertise in cardiology. For further advice on heart related condition and wellness, you can now consult Dr S K Gupta, famous cardiologist in Delhi at Apollo Hospitals. Stay healthy, stay happy!

 

Nine Golden Rules To Win at Intraday Trading

Intraday trading or day trading refers to the trading system where traders square-off the trade on the same day. Squaring off the trade means to sell and buy or buy and sell shares before the market closes on the same day.Intraday traders or day traders are most prone to risk and market fluctuations. One can lose all investments or become a millionaire within a few hours.Many traders use high-end technical data from brokers as well as their own calculations to decide their intraday trading strategy, best stocks for intraday, and their spending limit. It requires patience and dedication to make decent profits. If intraday trading is something which attracts you, here are some rules to remember before taking the plunge.

all-about-intraday-trading

Choose particularly liquid shares:

Traders need to square off before the market closes. Always choose shares which are very liquid and traded in large volumes. It ensures that despite market fluctuations, you will have some buyers for your shares at the end of the day. If you trade in small-cap shares, you might stand to lose a lot of money.

Limited Scrips:

Scrips or shares are traded every minute, intra-day traders may have a lot of scrips in their portfolio, but it’s practical to trade in two or three as they have to be monitored continuously for the entire day during day trading.

Stop Loss:

Stop Loss refers to an order placed with a broker to sell or buy shares if it reaches a certain price. This is done to avoid losses.

Example – A trader has bought 20 Reliance shares worth INR 100 each and sets a stop loss of INR 80. If the price of the share falls to INR 80, the shares are sold. This ensures that if the price falls even further, the traders safe from loss.

Book profits:

A trader’s mentality changes whenever he/she makes a trade. It’s vital for a trader to book a profit whenever it’s made. If a trader has 20 Reliance shares worth INR 100 each and a stop loss of INR 70, however, the trader feels bullish that the share price could increase to INR 120, the stop price should be increased from INR 70 to INR 90 to reserve some profits.

Research:

Intraday trading involves traders doing obsessive research and analysing data provided by broking houses. Traders need to know all upcoming business events (IPOs, mergers, bonuses, bankruptcies). Any event which can change the market trend should be known to a day trader.

Respect The Market:

There’s a saying at casinos ‘The House Always Wins’. The same rule is applied in trading. A trader can feel that he/she can overcome market trends and each time a trader feels this, he/she bites the dust. Work hard, trade hard, and always respect the market.

Greed:

Every intraday trader wishes to earn a lot of money. If a trader’s having a great run, it’s good, but the trader shouldn’t fall in for greed and put in more money to trade without careful thought. There’s a good chance that whatever profits made earlier could be wiped out. Always book your profits, simple profits accumulated over time is better than blind and greedy risks.

Choosing a Broker:

A trader needs to have an excellent broker. Brokers should provide services which are quick and efficient when it comes to intraday trading. A great example would Angel Broking, they offer well-researched data, market updates during the night, efficient money management and their brokers come with a wealth of experience. Always go for such brokers.

Invest money you can afford to lose:

The last and most important point. Do not pledge valuables, go in debt, or borrow from others for intraday trading. A trader should always invest money which he/she can afford to lose and which belongs to him/her.

Intraday trading can seem lucrative with easy money, but it’s far from that. It takes a lot of years of experience and hard work to earn money. If you are up for it, tread with little steps keeping the above rules in mind.