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.

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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.

How does the share market function?

While we all know what a stock market is and this where all the shares are traded, however, many are still unclear about how it works.

To begin with, a stock market is where all the financial instruments such as derivatives and stocks are traded. Be it the broker, the company that issues shares, investors or the traders, all of them need to first register with the stock exchange as well as Securities and Exchange Board of India.

share-market-function

The company who issues shares is listed through IPO, i.e. Initial Public Offering in the primary market such as ICICI bank share price, SBI share price, and share price of other banks and companies. All the details about the company as well as the number of shares to be issued are mentioned in the offer document. The stocks are then allotted to the investors as per the bid.

Once the stocks have been listed, they can then be traded in the secondary market. There are many brokerage firms as well as brokers who play the role of intermediaries between the investor and the stock exchange. When you place an order with the broker, he then forwards it to the exchange which in turn checks for a share sell order matching with the same share.

When a particular price is decided upon by the seller and the buyer, the order is confirmed by the exchange and hence communicated to the investor’s broker. The exchange also ensures that both the buyer and seller, do not default. After this is done, the ownership of the shares is then transferred which is called as settlement.

Once the order has been placed, there cannot be any cancellation. Therefore, it is very important to think, analyse, and decide in order to place any order in the stock market. The trade that has been confirmed has to take place as it is a question of sanctity on behalf of the stock exchange.

Importance of Share Market Research

In life, there are certain times, when we need to do a lot of thinking before we could arrive at a decision. In today’s world, with so much negativity around us, and people trying to make profits out of us even as we speak, it becomes imperative to double check, especially at the time of making any financial commitments. As our hard earned money needs to be taken care of in a sensible manner, it is important to make smart financial investments. While making investments, a lot of people get cold feet.

technicle research

Making investments is quite different from investing your money into buying property, vehicles, etc. As when you buy a product, you basically pay in order to get a commodity in your hand, depending on the quality of the deal you have made, you may end up with a good product or a faulty one. In order to make it a smart move, you can return a faulty product, and replace it with a good one. Investments on the other hand do not usually give you something in return for the amount you have paid, other than the promise of getting something usually better than what you have paid for now. The quality of the investment made can only be determined after a certain period of time.

In order to enable yourself to be able to take smart decisions in life, it becomes essential to do your home work before making an investment. Especially when it comes to share markets, one must conduct a thorough share market research before taking a dive. Doing proper analysis of the market behavior, technical research of the company, etc. are extremely important steps in order to improve your chances of achieving success. Websites such as Share Khan.com, etc. are always there to allow you to take their assistance in order to arrive at an acceptable decision. As it is always helpful to get a second opinion for what you have thought, and the opinion becomes all the more important when coming from an industry expert, there is tremendous scope in this field.

Smart tricks to save money on flights

Whether you are booking a flight for a family holiday or a business trip is on cards, one thing you always worry about is airfare. Over the years, most of the airline companies have raised the ticket prices. But if you know some of these tricks, you might save a good deal of money. Why spend on the en route, when you can utilise the same funds on your trip instead? Read on and find a cheaper deal on your flight bookings.

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Book online:  The first step to cutting out cost on your trip is to eliminate the middleman. If you get your bookings done through an agent, he is sure to charge his commission. To save yourself from paying extra commission, book flights online. Booking air tickets will allow you to avail a much better deal.

Sign up for alerts: Many travel portals allow you to sign up for alerts so you get a notification when there is fluctuation in the prices of air tickets. You can also set dates to find the cheapest deal possible. Moreover, if you interested in booking with a particular airline, keep a track of prices by regularly visiting their website.

Book well in advance: The more the delay, the expensive will your air tickets. It is advised to book flights at least 2 months before the departure date to avail a good deal.

Travel off-season: According to experts, airfares are generally low during off season. However, an off season can be any season depending on your destination. For example, if you are heading to India, you might consider going in the month of august and September. You will enjoy fewer crowds as well as find a good deal on flights to New Delhi, Mumbai and all major cities of India.

Cut out on baggage fees: Weigh your baggage before you leave home, this way you will avoid paying extra charges for the excess of baggage. You will find baggage allowance details on the website of the airline you are booking with.

Reasons you should consider buying a long term two wheeler insurance

If you are someone who thinks renewing two-wheeler insurance policy every year is a real distress and you keep forgetting it every time then this post will be of great help to you.

Some of the major insurance providers such as ICICI Lombard and New India assurance have recently launched long term two wheeler insurance that provides motor cycle insurance for at least three years against the usual cover of one year. The step of allowing insurance providers to provide long term wheeler insurance was taken to encourage vehicle owners to buy the protection cover.

Two-Wheeler insurance

Statists show that as there is constant increase in the number of two wheelers on the road, as well as simultaneous decrease in number of people buying two wheeler insurance. Introduction of long term two wheeler insurance is expected to reduce the difference between the two factors.

Let us read a few of advantages of long term two wheeler insurance

Convenient: long term insurance policy will save you from the trouble of renewing the policy every year. It often gets difficult keep a track of dates to renew the insurance policy. Also if you remember the date, it is quite possible that you are unable to renew it for other reason. To eliminate the hassle, it is advised to opt for a long term policy as it is easier for vehicle owners to stay protected without worrying about the renewals every year.

Stability of premium rates: Insurance Company usually hikes the premium rate every year, which is not in the case of long term policy. Once you avail a long term policy, premium rates will be frozen for whole tenure of the policy i.e three years.

Avoids non –renewal risks: If you forget to renew your policy annually, you will have to face several consequences such as penalties by law, financial damages in case of accidents etc. all this can easily be avoided if you are secured with a long term policy for two-three years.

Nowadays, it is easier to buy a long term two wheeler insurance online. The procedure online is much simpler and convenient.

Understanding Mutual Funds

Even though most people are familiar with the term mutual funds, many are not sure about what it means. Mutual funds are increasingly becoming popular as a means of investment. If you are an earning individual, you have most probably invested your earnings in a savings account. However, the returns provided by savings accounts are not enough to meet your long term financial goals. Which is why, individuals are turning towards other means of investments for better returns such as a mutual fund.

mutual funds

What is a Mutual fund?

Mutual funds are an investment instrument that pools the money of several investors to invest in multiple assets of the financial markets. The investments are managed by an institution known Asset Management Company or AMC. They are a great investment instrument that will enable you to reap the benefits of share markets with lesser risks. Mutual fund investments involve less risk as the investments are managed by the qualified professionals of the AMC. There are basically three types of mutual funds i.e. equity based funds with high risks, balance funds with medium risk and debt funds with low risks.

How to choose a mutual fund scheme?

Investing your hard earned money is a serious decision. Since there are numerous companies offering mutual funds, an investor tends to get confused while making the final decision. These pointers will help you choose the right mutual funds scheme:-

  • Risk profile: – Before making the final decision of purchase, it is very important to match the risks of the mutual fund investment scheme with your risk profile. The risks of a scheme varies according to the types of assets invested in. If you are willing to take more risks for higher returns, choose schemes that are equity based. For those who are risk averse, balanced mutual funds or debt based mutual funds would be more appropriate.
  • Read the fine print: – The prospectus features all the details of the scheme, hence it is very important read through the entire document. The funds that offer a higher rate of return may carry a high amount of risk as well. Therefore, only choose a scheme after careful evaluation.
  • Costs: – Mutual funds carry various costs in the form of fees which vary from company to company. Even a small difference in the costs can have a bearing on the final returns. Hence before buying a mutual funds, ensure that the extra costs are not eating into your returns.

How a wider and renewed Panama Canal will reshape world trade once again… — Mostly Economics

Withing the usual cacophony on world monetray and macro matters, it is changes like these which are expected to reshape the world economy. Canals played a major role in world trading and there has been huge politics around their construction. Panama Canal was also one such canal which overnight allowed ships to move from Atlantic […]

via How a wider and renewed Panama Canal will reshape world trade once again… — Mostly Economics

How to Go About Physics in Class 12

Board exams, especially the ones taken during Class 12, are known to be crucial decision makers in your career. And for those from the Science stream, there are several crucial subjects, which need ample amount of tutoring and self-study for clear understanding and better academic performance.

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Physics is one of the most interesting, at the same time, one of the most feared subjects amongst students. This contradiction of opinion amongst students is mainly prevalent because of the fact that they are not able to understand basic concepts well enough. Physics, being a subject full of conceptual topics requires a thorough understanding of the underlying principles. A quick read through the theory may be sufficient in other subjects, but here it needs to be accurately applied into practical problems, which may be a challenge even for the most proficient of students.

However, once this is understood well and brought into practice, the concept not only becomes simple, but also gives you a new way to think better in any situation. The topics in class XII Physics primarily revolve around the concept of electricity and electric current. One needs to pay proper attention to the direction of the current travelling in a conductor, apply the right rules, and follow it up with substitution in the right formula. This entire process needs to be completed with 100% accuracy in order to come up with the correct result, in the proper convention.

The other important topic for Class XII Physics students revolves around light and optics. This primarily requires you to understand the various cases of reflection and refraction in using different types of mirrors. Students need to remember the result that would be produced when an object is placed at a particular distance from the mirror. Based on this, there are several problems of varying difficulty levels that could be framed by the board.

Though a good level of understanding of these topics could help you tackle any problem, but there are certain notorious questions while attempting which, it is likely that you may be stuck at one point or the other. In order to assist you while solving such difficult questions, Extramarks.com provides you with the complete Physics class 12 NCERT solutions. These are a great resource that can be referred to whenever there’s a doubt in solving a particular problem. As textbook problems are the most important in exam preparation, it is undoubtedly the first and foremost requirement while preparing for a physics exam.