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Are you ready for ‘Muhurat Trading’ this Diwali?

Muhurat Trading 2018: First of all, a very happy and prosperous Diwali to you and your family. 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. 7th November 2018, for the day. 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. The mahurat trading period is considered auspicious for the upcoming year.

BSE and NSE will organize Muhurat Trading session between 5.30 PM and 6.30PM on this Diwali, and the pre-opening session will start at 6.15pm. Hence a normal trading will be conducted between these 60 minutes.

Pre-Open Session: 17:15 to 17:23
Muhurat Trading Session: 17:30 to 18:30
Block Deal: 17:00 to 17:15
Call Auction: 17:35 to 18:20
Post Closing: 18:40 to 18:50
Duration: 1 Hour

(Source: NSE India)

What is Muhurat Trading?

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.

Muhurat trading refers to the trading done on this auspicious day of Diwali.

Further, it’s a very propitious time to plan your investment for the upcoming year with your advisors/brokers to achieve your financial goals. Here are a few quick links to read more:

Besides, the Indian stock market will remain closed on 8th November 2018 (Thursday) for Diwali-Balipratipada.

Once again, a very happy Diwali. HAPPY INVESTING.

what is nifty and sensex share market

A Complete List of Stock Exchanges in India.

Most of the Indian investing population have heard of only two stock exchanges in India- Bombay stock exchange (BSE) and National stock exchange (NSE).  However, the list of stock exchanges in India is bigger than just two.

Apart from BSE and NSE, few of the other popular stock exchanges in India are Calcutta stock exchange, Magadh stock exchange, Metropolitan stock exchange of India etc.

In this post, we are going to highlight the major stock exchanges in India which are registered with the Securities and exchange board of India (SEBI) and currently active. We’ll also share a list of different commodity derivative exchanges in India.

Here are the topics that we’ll discuss today:

Table of Content:

  1. What is a stock exchange?
  2. Two biggest stock exchanges in India
    1. Bombay Stock Exchange
    2. National Stock Exchange
  3. Difference between stock exchange and commodity exchange
  4. The complete list of stock exchanges in India
  5. List of commodity derivative exchanges in India.
  6. Final Thoughts

1. What is a Stock Exchange?

Before we dive deep into stock and commodity exchange, first of all, let’s understand what is an exchange.

An exchange is an organization or association which hosts a market where stocks, bonds, futures and options, commodities, etc are traded. Here, buyers and sellers come together to trade the financial instruments during the specific hours of business days. (Also read: Stock market timings in India).

A stock exchange is a facility where stocks are traded. Please note that stock exchanges do not own the stocks (similar to the vegetable market where the market doesn’t own the vegetables but connects the buyers and sellers of vegetables at a location).

To trade in a stock exchange, the companies must be listed there. The exchange imposes rules and regulations on the firms & brokers for efficient trading and provides the facility for the issue and redemption of securities. (Also read: How does stock market work?)

Those companies which are not listed on the stock exchanges are traded over the counter (OTC). These are the smaller, riskier and less liquid companies. Generally, they do not meet the requirements of getting listed on the stock exchanges and hence trade over the counter.

2. Two Popular stock exchanges in India

Now, let us first discuss the two of the largest stock largest exchanges in India- Bombay stock exchange and national stock exchange.

Bombay Stock Exchange:

Bombay stock exchange (BSE) is an Indian stock exchange located at Dalal Street, Mumbai, Maharashtra.

  • It was established in 1875 and is Asia’s oldest stock exchange.
  • The BSE is the world’s 11th largest stock exchange with an overall market capitalization of $1.43 Trillion as of March 2016.
  • More than 5500 companies are publicly listed on the BSE.

National Stock Exchange

The National Stock Exchange (NSE) is the leading stock exchange of India, located in Mumbai, Maharashtra, India. It was started to end the monopoly of the Bombay stock exchange in the Indian market.

  • NSE was established in 1992 as the first demutualized electronic exchange in the country.
  • It was the first exchange in the country to provide a modern, fully automated screen-based electronic trading system which offered the easy trading facility to the investors spread across the length and breadth of the country.
  • NSE has a total market capitalization of more than US$1.41 trillion, making it the world’s 12th-largest stock exchange as of March 2016.
  • NSE’s index, the NIFTY 50, is used extensively by investors in India and around the world as a barometer of the Indian capital markets.

Also read: What are Sensex and Nifty?

3. Difference between stock and commodities exchanges.

The stock exchange is a place where the piece of ownership in businesses (i.e. stocks) are bought and sold among the traders. On the other hand, a commodity exchange is a market where goods that come from the earth like gold, silver, corn, soybeans, oil, cattle, coffee, pork etc are traded among the buyers and sellers.

An important difference between both these markets is that commodity exchanges are not just for investment purpose, but also for the business purpose to carry out the operations.

4. The complete list of stock exchanges in India

Here is the list of existing stock exchanges in India as of October 2018.

Sr. No. Name Address Valid Upto
1 BSE Ltd. Address: P J Tower, Dalal Street, Mumbai 400023
Website : http://www.bseindia.com
PERMANENT
2 Calcutta Stock Exchange Ltd. Website : http://www.cse-india.com/ PERMANENT
3 India International Exchange (India INX) India International Exchange IFSC Limited, 101, First Floor, Hiranandani Signature Tower, GIFT City IFSC – 382355, Gujarat, India.Website : http://www.indiainx.com/ Dec 28, 2018
4 Magadh Stock Exchange Ltd. “SEBI vide order dated September 3, 2007 refused to renew the recognition granted to Magadh Stock Exchange Ltd.” PERMANENT
5 Metropolitan Stock Exchange of India Ltd. Website : http://www.msei.in/index.aspx Oct 02, 2019
6 National Stock Exchange of India Ltd. Address: Bandra Kurla Complex, Bandra (East) Mumbai 400051
Website : https://www.nseindia.com
PERMANENT
7 NSE IFSC Ltd. NSE IFSC LIMITED, Unit No. 46 – 53, 1st Floor, GIFT Aspire One Business Centre, Block 12, Road 1-D – Zone 1, GIFT SEZ, Gandhinagar 382355.
Website : https://www.nseifsc.com/
May 28, 2019

Note:The Hyderabad Securities and Enterprises Ltd (erstwhile Hyderabad Stock Exchange), Coimbatore Stock Exchange Ltd, Saurashtra Kutch Stock Exchange Ltd ,Mangalore Stock Exchange, Inter-Connected Stock Exchange of India Ltd, Cochin Stock Exchange Ltd, Bangalore Stock Exchange Ltd , Ludhiana Stock exchange Ltd, Gauhati Stock Exchange Ltd, Bhubaneswar Stock Exchange Ltd, Jaipur Stock Exchange Ltd, OTC Exchange of India , Pune Stock Exchange Ltd, Madras Stock Exchange Ltd, U.P.Stock Exchange Ltd, Madhya Pradesh Stock Exchange Ltd, Vadodara Stock Exchange Ltd, Delhi Stock Exchange Ltd and Ahmedabad Stock Exchange Ltd have been granted exit by SEBI vide orders dated January 25, 2013, April 3, 2013, April 5, 2013, March 3, 2014, December 08, 2014, December 23, 2014, December 26, 2014, December 30, 2014, January 27, 2015, February 09, 2015, March 23, 2015, March 31, 2015 ,April 13, 2015, May 14, 2015, June 09, 2015, November 09, 2015, January 23, 2017 and April 02, 2018 respectively.

(Source: Securities and exchange board of India)

calcutta stock exchange

5. List of Commodity Derivative Exchanges in India

Here is the list of commodity derivative exchanges in India as of October 2018.

Sr. No. Name Address Valid Upto
1 Ace Derivatives and Commodity Exchange Limited Address: Rawat-ni-wadi, Nr.Central Bank of India, Gandhi Road, Ahmedabad-380001
Website : http://www.aceindia.com/
PERMANENT
2 Indian Commodity Exchange Limited Address: Reliable Tech Park, 403-A, B-Wing, 4th Floor, Thane-Belapur Road, Airoli (E), Navi Mumbai-400708Website : http://www.icexindia.com/ PERMANENT
3 Multi Commodity Exchange of India Ltd. Address: Exchange Square, CST No.225, Suren Road, Andheri (E), Mumbai-400093
Website : https://www.mcxindia.com/
PERMANENT
4 National Commodity & Derivatives Exchange Ltd. Address: Akruti Corporate Park,1st Floor, Near G.E.Garden , L.B.S. Marg, Kanjurmarg(West), Mumbai – 400 078
Website : http://www.ncdex.com/
PERMANENT
5 National Multi Commodity Exchange of India Limited. Address: 5,4th Floor,H.K. House, B/h JivabhaiChambers,Ashram Road, Ahmedabad.-380009
Website : http://www.nmce.com
PERMANENT

Note:(#) Pursuant to Section 131 of Finance Act, 2015 and Central Government notification F.No. 1/9/SM/2015 dated 28th August, 2015 all recognized associations (Commodity derivatives exchanges) under the Forward Contracts (Regulation) Act, 1952 (FCRA) as on September 28, 2015 are deemed to be recognized stock Exchanges under the Securities Contracts (Regulation) Act, 1956 (SCRA).

(Source: Securities and exchange board of India)

6. Closing Thoughts

The stock exchange is a place where buyers meet the sellers to trade the securities. Two large and popular stock exchanges in India are National stock exchange (NSE) and Bombay stock exchange (BSE).

To get listed on the stock exchange, the companies must meet the basic requirements and guidelines. Further, over the counter (OTC) is a place where unlisted stocks can be bought or sold.

That’s all for this post. Happy Investing.

what are fang stocks

What are FANG stocks? And why are they so popular?

Originally coined by Jim Cramer of MSNBC, ‘FANG’ is a group of high performing technology stocks that includes Facebook, Amazon, Netflix, and Google (Alphabet).

While all these companies started as tiny startups just a couple of decades ago, they have rapidly grown into innovation engines and in the process have delivered stellar returns to investors.

Just to put the size of the FANG companies into perspective, as of September 7, 2018, the combined market capitalization of the four companies was USD 2.4 Trillion. This is greater than the market capitalization of all the 30 companies in the SENSEX (USD 2.2 Trillion) put together!

Nowadays, the FANG acronym has multiple versions. Some investors added Apple to the list to coin the term FAANG. Meanwhile, Goldman Sachs created their own acronym, removing Netflix and adding Microsoft to the mix, to form FAAMG, signifying the top 5 tech companies that have been the primary drivers of growth in the US stock market.

Regardless of what you call them, these technology companies have displayed unprecedented growth and have become darlings of investors across the world. Some key facts about the companies:

Facebook

  • Along with its own successful social media platform, Facebook owns Instagram, Whatsapp, and Facebook Messenger. All of these are globally recognized platforms with more than 1 billion users each.
  • Facebook makes the majority of its revenue from advertising. In fact, Facebook, along with Google, is a duopoly in digital advertising. Facebook captures almost 20% of the entire digital advertising spend in the US.
  • The Facebook stock recently lost USD 120 Billion in value primarily due to concerns over data privacy. Despite the stock price hit, Facebook continues to grow its revenue. At the end of 2Q 2018, the company’s revenue grew by 42% to USD 13.2 Billion.

Amazon

  • A global e-commerce player, Amazon recently crossed the coveted USD 1 Trillion market cap mark for the first time.
  • The company has captured 49.1% of the online retail market in the US and is set to post USD 258 Billion in retail revenue in 2018.
  • One of Amazon’s growth drivers is its cloud computing service called Amazon Web Services (AWS). AWS revenues grew by 42% year on year in 2Q 2018 to reach a revenue of more than USD 4 Billion.
  • It also has an internet advertisement business, which is expected to drive significant future growth and achieve USD 16 Billion revenue by 2021.

Also read:

Apple

  • Apple was the first company in the history of the stock market to hit a USD 1 Trillion market cap.
  • It has the market cornered for smartphones. Despite capturing only 18% of the smartphone volume, the iPhone captures about 87% of the profit margin of the entire smartphone industry. This is in stark contrast to Samsung, which captures only about 10% of the industry’s profit.
  • It also has a rapidly developing internet services business that grew at 31% year over year to deliver USD 9.5 Billion in revenue in Q2 2018. An incredible feat for a mature company.

Netflix

  • The first global TV provider and pioneer of the subscription model, Netflix has more than 130 million subscribers worldwide. This large subscription base allows it to spread development cost across its users and thus gain a cost advantage over its competitors.
  • Recently, concerns have been raised over the high debt the company is raising to fuel content development, and also around the increasing number of streaming competitors.
  • In the past several years, Netflix has almost always beaten investors’ growth expectations. However, the next phase of its growth is going to be challenging, it missed growth targets for Q2 2018.

Microsoft

  • Satya Nadella, the CEO of Microsoft, has done a tremendous job in navigating Microsoft through a post-Windows world.
  • Led by its cloud and AI practice, the company’s revenue surpassed USD 100 Billion for the first time, in the fiscal year 2018.
  • In its last earnings release, the company announced that its three core business units reported double-digit revenue growth, with Azure Cloud (its cloud services arm) leading the charge by posting 89% year over year revenue growth.

Google (trades under the name of Alphabet)

  • The leader in digital advertising, Google has captured 90.5% of the search market. Despite its massive size, Google’s revenue continues to grow rapidly.
  • In Q2 2018, revenue was up 26% year on year to reach USD 32.6 Billion.
  • The company enjoys a leadership in AI technologies, largely due to its massive user base and superb ability to capture and utilize big data to train state of the art machine learning models.

Clearly, the FANG/FAANG/FAAMG companies are on their way to revolutionizing how the world interacts with and benefits from technology! 

In order to become a part of this journey and to invest in these companies, visit Vested – It’s a platform that allows you to invest in US-listed companies like Facebook, Amazon, Google etc. in a cheap and simple way.

Viram is an avid investor, engineer and ex-investment banker. He’s currently the Co-Founder and CEO at Vested and is also pursuing his MBA from the University of California, Berkeley’s Haas School of Business.

10 Best Dividend Stocks in India That Will Make Your Portfolio Rich 2018

10 Best Dividend Stocks in India That Will Make Your Portfolio Rich.

10 Best Dividend Stocks in India (Updated- October 2018)

Whenever a retail investor, like you and me, buys a stock, then their main aim is to earn money through their investment. There are two methods by which anyone can earn money by investing in stocks. They are:

  1. Capital Appreciation
  2. Dividends

The first one, capital appreciation, is quite famous among investors. Everyone knows this secret to earn in the stock market. Buy low and sell high. The difference is capital appreciation or profit.

Suppose you bought a stock at Rs 100 and two years hence, the price of the stock has increased to Rs 240. Here, the capital appreciation is Rs 240- Rs 100 = Rs 140. In short, you made a profit of Rs 140 or 140%.

Almost everyone who enters the market knows this method of earning by stocks. It can also be concluded that most people enter the market hoping that their investment will be doubled or quadrupled and will make them a millionaire one day through capital appreciation.

Now, let us move to the second method of earning through stocks- DIVIDENDS.

Whenever a company is for profit, it can use this profit amount in different ways. First, it can use the profit amount in its expansion like acquiring new property, starting a new venture/project etc. Second, it can distribute the profit among its owners and shareholders. Third and final, it can distribute some portion of the profit to the shareholders and use the remaining in carrying out its expansion work.

This amount distributed among the shareholders is called DIVIDEND.

What is a dividend?

“A dividend is a distribution of a portion of a company’s earnings, decided by the board of directors, to a class of its shareholders. Dividends can be issued as cash payments, as shares of stock, or other property.”

Typically, most companies give dividends two times a year, namelyInterim dividend and final dividend. However, this is not a hard and fast rule. Few companies, like MRF, gives dividends three times a year.

Read more: Dividend Dates Explained – Must Know Dates for Investors

Why are dividends good?

Suppose you are a long-term investor. You have invested in the stocks of a company for 15-20 years. Now, if the company does not give any dividends, there is no way for you to make money until you sell the stocks.

On the other hand, if the company gives a regular dividend, say 4% a year, then you can plan your expenses accordingly.

A regular dividend is a sign of a healthy company. 

A company, which has given a consistent (moreover growing) dividend for an interval of over 10 consecutive years, can be considered a financially strong company. On the contrary, the companies that give irregular dividends (or skips dividends in harsh economic conditions) can not be considered as a financially sound company.

If you want to learn stocks from scratch, I will highly recommend you to read this book: ONE UP ON THE WALL STREET by Peter Lynch- best selling book for stock market beginners.

Top Dividend Paying Indian Stocks in 2017 quote 2

Big dividend yield can be an incredibly attractive feature of a stock for the people planning for retirement.

Now that we have understood the meaning of dividends, let us learn a few of the important financial terms that are frequently used while talking about dividends.

Must know financial terms regarding Dividends

1. Dividend yield: – It is the portion of the company earnings decided by the company to distribute to the shareholders. A stock’s dividend yield is calculated as the company’s annual cash dividend per share divided by the current price of the stock and is expressed in annual percentage. It can be distributed quarterly or annually basis and they can issue in the form cash or stocks.

Dividend Yield = (Dividend per Share) / (Price per Share)*100

For Example, If the share price of a company is Rs 100 and it is giving a dividend of Rs 10, then the dividend yield will be 10%. It totally depends on the investor whether he wants to invest in a high or a low dividend yielding company.

2. Dividend % This is the ratio of the dividend given by the company to the face value of the share.

3. Payout ratio It is the proportion of earnings paid out as dividends to shareholders, typically expressed as a percentage. The Payout Ratio is calculated as follows:

Payout Ratio = Dividends per Share (DPS) / Earnings per Share (EPS)

As a thumb rule, avoid investing in companies with very high dividend payout ratio. In other words, be cautionary if the payout ratio is greater than 70%. (Also read: The Fundamentals of Stock Market- Must Know Terms)

To move further now that we have understood the basics behind the dividends, here is the list of 10 Best Dividend Stocks in India.

10 Best Dividend Stocks in India-

10 Best Dividend Stocks in India That Will Make Your Portfolio Rich cover

In addition, if you are interested to know about other high dividend stocks, then you can find it here: BSE TOP DIVIDEND STOCKS

The growing companies give less dividend yield to their shareholders as they use the profit amount in their expansion.

On the other hand, the Blue Chip stocks, which are large and established company and has already reached a saturation point, gives good regular dividends.

Further, the public sector companies are known for giving good dividends. Industries like Oil and petroleum companies, in general, give decent dividends.

Here are few of such stocks with high current dividend yields which are also worth investing:

10 Best Dividend Stocks in India

Also Read: PSUs with high dividend yields

Where to find dividend on a stock?

You can find the dividend of a stock of any of the major financial websites in India. Here are few:

  1. Money Control: http://www.moneycontrol.com/
  2. Economic times- Market: http://economictimes.indiatimes.com/markets
  3. Screener: https://www.screener.in/
  4. Investing.com: https://in.investing.com/
  5. Market Mojo: https://www.marketsmojo.com/markets

That’s all. I hope this post about ‘10 Best Dividend Stocks in India That Will Make Your Portfolio Richis useful to the readers. Further, I will highly recommend not investing in stocks based on just high dividend yield.

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

If you have any queries or suggestions, feel free to comment below. I will be happy to receive a feedback. #HappyInvesting.

Top Dividend Paying Indian Stocks in 2017 quote

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!

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Hi, I am Kritesh, an NSE Certified Equity Fundamental Analyst and an electrical engineer (NIT Warangal) by qualification. I have a passion for stocks and have spent my last 4+ years learning, investing and educating people about stock market investing. And so, I am delighted to share my learnings with you. #HappyInvesting

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

Hi, I am Kritesh, an NSE Certified Equity Fundamental Analyst and an electrical engineer (NIT Warangal) by qualification. I have a passion for stocks and have spent my last 4+ years learning, investing and educating people about stock market investing. And so, I am delighted to share my learnings with you. #HappyInvesting

Should You Invest in Stocks When The Market is High?

Should You Invest in Stocks When The Market is High?

Should you invest in stocks when the market is high?

The Indian stock market hit the record high yesterday (15 Jan’18) when NSE Index nifty touched 10741.55 points for the first time in the Indian history.

People who have already invested in the market are enjoying the fun ride. But what about those who haven’t entered the market or are planning to invest?

With stock market indexes at the all-time high, it’s certain that those who are new to stocks or just started to put money are confused what to do next? Here are the two common questions that might be running in their head:

  • Should I wait for a market crash or correction?
  • Or Should I enter the market? I have already missed out the last few months and what if there is no market crash and the bull market continues? I don’t want to miss this opportunity.

Overall, the main question is whether this is the right time to invest in stocks or should you wait for some correction.

Should you invest in stocks when the market is high?

If you think rationally, then it makes more sense to not invest in the market if it is going to crash tomorrow. Why invest in stocks if its price to going to come down tomorrow and then you can buy the stocks cheap. Putting your money in the market at the wrong time is one of the biggest concern for most of the investors.

But how much certain are you that the market is going to crash tomorrow or in near future? 

If you know the fixed date or even the fixed month, please share it with me. I’ll sell my entire portfolio, hold my money and buy the stocks only after the crash.

Here’s a quote from the star fund manager, PETER LYNCH. He is known to deliver 29.2% annual returns for 13 consecutive years while he was managing the magellan fund at Fidelity Investments.

peter lynch quotes on market analysis

The quote is from Peter Lynch’s best selling book ‘ONE UP ON WALL STREET‘, which I’ll highly recommend you to read.

In the book, Peter Lynch argues that those who spend more time analyzing the economy and predicting the market crash, are simply wasting their time. They can get more benefits from the market if they spend the same time researching the stocks.

Honestly speaking, no one ever knows when will be the next big market crash. Even the greatest market experts and economists had failed to do so. Otherwise, whey would have been the richest person in the world, not Warren Buffett, the Oracle of Omaha.

Now, once you are certain that you cannot predict the future and hence, do not know if there will be a market crash tomorrow, let’s take a different approach and rule out the decision of not investing in stocks.

Should You Invest in Stocks When The Market is High?

Let’s recap what we discussed till now. First, you do not know that when will be the next big market crash. And second, you know that market is capable of giving good returns on your investment.

Currently, the bulls are in control of the Indian share market and however, the bull run may or may not continue in the future. The bull market may end next month or might long for the next few years.

With all these uncertainties, the best approach that you can take is to invest intelligently in the market.

Do not look at just the market indexes. Even in the bull market, there are a number of companies which are at 52-week high and 52-week low.

It’s easier if you just look at the stock and ignore the market (for some time). If you find a good stock which is currently trading at a reasonable price and you believe that the company is capable of huge future growth and giving high returns to the investors, then invest in the company. There are over 5,500 listed company and not all of them can be over-priced at once.

The index nifty and Sensex comprises of the  50 and 30 large companies from NSE & BSE. Hence, they are totally capable of ignoring the performance (and valuation) of many of the large/mid/small companies listed on the market. A sample of 50 companies cannot give the exact outlook of all the 5,500 listed companies.

Also read: What is Nifty and Sensex? Stock Market Basics for Beginners

Find some good companies and invest in them, regardless being the market high or low. Even during the bear market of 2015-16, there were many stocks which gave multiple times returns.

There is a common saying in the western world about the stock market investment:

“TIME IN THE MARKET IS MORE IMPORTANT THAN TIMING THE MARKET.”

This means that remaining invested in the share market for the longest time is better than to wait for the perfect time and enter late.

Do not wait too long to get started. You need to remain invested longer in the Indian stock market if you want to create wealth. The Indian stock market is at record high from the last feb’2016. And if you haven’t invested since then thinking that the market is at the all-time high, you have already missed 11 months of the bull run, where may have already created huge wealth for many.

What is the best approach for new investors?

For newbie investors, I will recommend- Rupee cost averaging. Invest a certain amount of money each month.

If you are not certain about the future price movement of a stock but are confident that it is fundamentally strong, then follow the rupee cost averaging approach.

Invest a few amount every month in the stock for the next 5-6 months and average out your buying price.

Moreover, avoid lump sum investment i.e. investing the complete amount at one go.

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

Few other points to know:

1. Even the worst stock market crash couldn’t destroy the wealth of the long-term investors: 

I know most of the investors get panicked when they hear the word ‘CRASH’. No matter how much reasons I give to invest, however after reading this word, you might be re-thinking that I shouldn’t invest now. Maybe the market will crash soon as the market is at the record high. I will invest in the market later.

I wish making decisions to invest was that easy. No one can predict the precise date of the stock market crash. And If we can’t control or forecast something, it’s not that important to discuss.

Nevertheless what we can do, is to read the historical data.

Let’s analyze the worst stock market crash in the Indian history- 2008 Stock market Crash.

The biggest crashes were on two consecutive days- 21 Jan and 22 Jan during the 2008 recession time. On both these days, the BSE Index Sensex fell over 2,000 points. Moreover, there were 7 trading days when the Sensex fell over 1,000 points in 2008.

Source: Sensex’s 1,689-point plunge not even among 5 biggest crashes in BSE history!

I wasn’t involved in the market at that time (too young), however, I can imagine the panic. The stock market experts say that every investor is destined to see at least two big stock market crashes in his/her career. I hope it counts as one 😉

Sensex last 30 years

Source: Trading Economics

The point to note here is that even the worst Indian stock market crash would not have been able to destroy the wealth of the long-term investor.

In the above chart, notice that even if you have invested at the peak of 2008 and had remained invested for 8–10 years time horizon, you would have received decent returns from the market.

Further, as I already stated above, you cannot predict when the next crash will happen. It may be within a year, or maybe after 5 years, or maybe after decades, who knows?

Moreover, what if we are at the stage of 2005 when the stock market was still at an all-time high but at the beginning of the bull run?

Those who didn’t invest in 2004/05 thinking that the market was at high, missed the bull run phase of over 3 years. And just for your information, the NSE benchmark index Nifty gave a return of 36.3% (2005), 39.8%(2006) and 54.8%(2007) in that bull run.

In 2017, nifty gave a return of 28.6% to the investors and people think its huge (The below graph is updated upto July’17).

nifty yearly returns

Source: https://www.nseindia.com/products/content/equities/indices/Nifty_journey_10000.pdf

I cannot say whether there will be a market crash or not in the future. But what I can say is that the Indian economy is going through a major boom. And if you do not invest in stocks, you might miss one of the biggest stock market rally.

2. You will never be able to find the perfect moment: 

Today the market is high. And that’s why you are not investing. Tomorrow, when the stock prices will be falling and many of the companies will be making their all-time low, will you have the nerve to enter the market?

It’s really tough to buy the stock at the exact bottom and sell at the top. To be honest, those who are able to do it are often lucky. Moreover, it’s not repeatable. Even if you’re able to do it once, you definitely cannot repeat it again and again.

If you are waiting to enter the market when it’s at the bottom, then it’s really difficult. Similarly, if you are trying to exit from the market, thinking that the market is high, how can you be certain that it’s the top?

Overall, do not try to time the stocks, in spite try to stay for a long time in stocks. AS ALWAYS, TIME IN STOCKS IN BETTER THAN TIMING THE STOCKS.

What approach should the old-investors follow?

For those who have already invested in the stocks, do not move out of the market, just because the market is high or your stock is at the 52-week high.

If you are investing for long-term (8-10 years or more), then surely you will find few times when the market is at high. Are you always going to quit that time? Most of the greatest investors are known to hold the stocks for 10-15 years, and not to sell them in between even when their stocks hit new highs a couple of times in this period.

The world’s most renowned investor, Warren Buffet bought the stocks of Coca-cola in the late 1980s (around 1988-89) and is still holding that stock for over 27 years now.

The Big bull of India, Rakesh Jhunjhunwala bought the stocks of Titan Company in 2002-03 and is still holding the stock. Certainly many a time the market was at its high in the period of last 15-16 years. But being a long-term value investor, Rakesh Jhunjhunwala didn’t sell the stock, just because the market was high.

In short, do not exit from the stock just because the market is high. You might never be able to enter the stock again at the same discount price where you entered first.

Conclusion: 

The stock market indexes- NIFTY & SENSEX are high, isn’t a valid reason to not invest in the share market.

While investing in share market, look at the company, not the Index. If you are able to find a good stock at a reasonable price and believe that the company has huge future growth potential, then invest in it.

You cannot predict whether there’s gonna be a crash or a long bull market ahead.

The key to success in stocks in to minimise the risks, not to avoid it. If you invest in stocks intelligently, then you can minimise the risks, even in the crash, correction or bear market. However, if you avoid the market, then you won’t be able to get any benefits; even if there is a bull run in the market.

Quick Note: According to the World Bank’s Global Economic Prospects, India is likely to regain the position of the fastest growing economy in 2018. India’s growth rate is expected to accelerate to 7.3% in the year. Still not want to invest in the growing economy of the country? Read more here.

BONUS: 

What’s the golden rule for wealth creation for the new and old investors?

Invest for the long term. Find fundamentally strong stocks and hold it tight without getting influenced by the public sentiments. Do not wait for the ‘bestest’ time to enter the market. Many had failed to time the market and you will too.

You may call this a conservative approach. However, if the long-term investment has worked for most of the successful stock market investors and had created huge wealth for them, then it can definitely create decent wealth for us too.

THAT’S ALL! I hope this post is useful to the readers.

Let’s end this article with one of my favorite quotes on investing:

“THE BEST TIME TO INVEST WAS YESTERDAY. THE SECOND BEST IS TODAY. AND THE WORST IS TOMORROW.”

If you are new to stocks and confused where to start, here’s an amazing online course for the newbie investors: INVESTING IN STOCKS- THE COMPLETE COURSE FOR BEGINNERS. I’m confident that the course will be useful to the new investors. Happy Investing.

Tags: Should you invest in stocks when the market is high, is now a good time to invest in the stock market 2017. invest now or wait for correction, should i invest in the stock market today

Hi, I am Kritesh, an NSE Certified Equity Fundamental Analyst and an electrical engineer (NIT Warangal) by qualification. I have a passion for stocks and have spent my last 4+ years learning, investing and educating people about stock market investing. And so, I am delighted to share my learnings with you. #HappyInvesting

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

Hi, I am Kritesh, an NSE Certified Equity Fundamental Analyst and an electrical engineer (NIT Warangal) by qualification. I have a passion for stocks and have spent my last 4+ years learning, investing and educating people about stock market investing. And so, I am delighted to share my learnings with you. #HappyInvesting

Companies with Highest Share Price in India

#12 Companies with Highest Share Price in India (Updated).

#12 companies with highest share price in India (Updated- August 2017):

Hi Investors. In this post, we are going to discuss the 12 companies which have the highest share price in India.

Note: Please study the companies carefully if you want to invest in any of the stocks mentioned in the list here. A high stock price doesn’t guarantee a fundamentally strong company or a good investment.

Let’s get started.

#12 Companies with Highest Share Price in India

1. MRF (Rs 74,076)

mrf-tyres Companies with Highest Share Price in India

Market Capitalisation = Rs 31,408 Cr

Madras Rubber Factory (MRF) is a Tyre manufacturer that produces a wide range of tyres. It specializes in Car & bike tyres, trucks/buses tires etc.

 MRF has the highest share price in India among all the listed companies on BSE/NSE.

The all-time high share price of MRF is Rs 81,426. The stock is currently trading at a standalone PE of 25.20.

MRF has never split its share and has a face value of Rs 1o. Noticeably, this company was trading at a price of Rs 10,000, in November 2012.

2. Page Industries (Rs 34,652)

page industries

Market Capitalisation = Rs 38,637 Cr

One of the famous company under Page Industries is Jockey (Underwear and inner wears company). Page industries is in readymade apparels (garment) industries. It has turned out to be a multi-bagger stock in the last couple of years and has given a return of over 500% in last 5 years.

Page industries is currently trading at a PE of 100.06.

3. Rasoi (Rs 30,270)

rasoi

Market Capitalisation = Rs 292.41 Cr

This is one of the lesser known company on the list of companies with highest share price in India. Rasoi Ltd is in the Vanaspati and oil industry.

The stock is currently trading at a standalone PE of 43.13 against the industry PE of 24.57 (52 weeks high- Rs 49,601).

4. Eicher Motors (Rs 28,870)

eicher motors

Market Capitalisation = Rs 78,721 Cr

The parent company of Royal Enfield (Bullet bikes) and Eicher trucks. This is in the automobile sector.

This stock has turned out to be a multi-bagger and given a return of over 1,100% in the last 5 years.

 Eicher motor was trading at a price of Rs 2,500 in November 2012.  The current PE of Eicher Motors is 37.96.

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

5. 3M India (Rs 25,419)

3m india

Market Capitalisation = Rs 28,647 Cr

3M India has a diversified portfolio of products in dental cement, health care, cleaning etc. This stock is currently trading at a PE of 83.26.

6. Honeywell Automation (Rs 21,937)

honeywell

Market Capitalisation = Rs 19,392 Cr

Honeywell is a leader in providing integrated automation and software solutions. It has a wide product portfolio in environmental and combustion controls, and sensing and control etc.

This stock has given a return of over 475% in the last 5 years. It is currently trading at a PE of 67.79.

Also read: #9 Reasons Why Most Indians do not Invest in stocks.

7. Bosch (Rs 18,801)

bosch

Market Capitalisation = Rs 57,378 Cr

Bosch ranks 4th in the list of companies with highest share price in India. It is a part of the German multinational company Robert Bosch (or just Bosch), headquartered in Germany.

Bosch belongs to automobile ancillaries industry and currently trading at a PE of 36.80 (52-week high- Rs 25,240).

8. Shree Cements (Rs 18,373)

shree cements

Market Capitalisation = Rs 64,012 Cr

Shree Cement is an Indian cement manufacturer headquartered in Kolkata. It is the biggest cement maker in northern India. 

Shree cements is currently trading at a PE of 52.32. (52-week high- Rs 20,538)

9. Polson (Rs 14,301)

polson

Market Capitalisation = Rs 172.41 Cr

Polson ltd is a chemical industry company which deals with dyes and pigments. This stock has given a return of 4,000% in the last 5 years. It was trading at just Rs 300 in November 2012.

Polson is currently trading at a PE of 24.72.

10. Nestle India (Rs 11,369)

Nestle Products

Market Capitalisation = Rs 109,617 Cr

Nestle India is in food processing industry with a wide variety of products like Maggi, Kit-Kat, Nescafe, Every day etc.

 This stock is currently trading at a PE of 74.36.

11. Procter & Gamble (Rs 10,051)

procter and gamble

Market Capitalisation = Rs 32,626 Cr

P & G is in the personal care industry with products in hygiene and health care. Few famous products of Procter & Gamble group are Ariel, Duracell, Gillette, Head & Shoulder etc.

This stock is currently trading at a PE of 87.10.

12. Maruti Suzuki (Rs 9,163)

maruti suzuki

Market Capitalisation = Rs 276,808 Cr

It is the leading car manufacturer in India with most selling cars like Swift, Alto, WagonR etc. Maruti Suzuki is in the automobile sector.

Maruti has given a return of over 450% in the last 5 years. It is currently trading at a PE of 34.14

BONUS:

13. Tasty Bite Eatables (Rs 8,801)

tasty bytes

Market Capitalisation = Rs 2,258 Cr

This company operates in the food processing industry with products like tasty bite rice, noodles, entrees etc. This stock is currently trading at a PE of 83.12.

Summary:

Here is the list of 12 Companies with Highest Share Price in India. Feel free to share this infographic with your friend:

Disclaimer:

The list of 12 Companies with Highest Share Price in India is till date August 2018. The stock market is dynamic and the stock prices will change in the future, which may change the list or the order of the companies listed here.

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

That’s all for this post on ‘#12 companies with the highest share price in India’. Most of the companies on this list are trading at a high PE. If you want to buy any one of them, then please study the company carefully. Past performance does not guarantee the future returns.

Further, do comment below which other stocks can find a place in this list by next year (August 2019), according to you?

New to stocks? Want to learn how to select good stocks for long-term investment? Check out my amazing online course: HOW TO PICK WINNING PICKS? The course is currently available at a discount.

Tags: Most Expensive Stock Per Share Price in India, Most Expensive Stock Price in India, Highest Share Price, 10 most expensive stocks in india, costliest share in India, Companies with Highest Share Price in India

Hi, I am Kritesh, an NSE Certified Equity Fundamental Analyst and an electrical engineer (NIT Warangal) by qualification. I have a passion for stocks and have spent my last 4+ years learning, investing and educating people about stock market investing. And so, I am delighted to share my learnings with you. #HappyInvesting

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?

Hi, I am Kritesh, an NSE Certified Equity Fundamental Analyst and an electrical engineer (NIT Warangal) by qualification. I have a passion for stocks and have spent my last 4+ years learning, investing and educating people about stock market investing. And so, I am delighted to share my learnings with you. #HappyInvesting

best stock market apps

7 Best Stock Market Apps that Makes Stock Research 10x Easier.

7 Best Stock Market Apps that makes Stock Research 10x Easier– Now a day, if you are a stock market trader, then it’s essential for you to stay updated with every minute market movements. The modern stock market traders keep tabs on rising and fall of the stocks on daily basis and sometimes that too hourly.

The high-speed internet and handy mobile apps have made the life of traders simple, faster and efficient. These financial apps help the traders to stay informed and ready all the time.

From checking the real-time streaming market price of the stock, making a virtual portfolio, drawing stocks charts, following market trends to tracking your portfolio; everything is now accessible from your smartphone or tablet.

Therefore, today I am going to present you the 7 Best Stock Market Apps that will make your stock research easier in India. Moreover, all the apps listed here are free. So be with me for the next 5-8 minutes to learn best stock market apps for Indian stock research.

7 Best Stock Market Apps –

1. MoneyControl:

best stock market apps money control

Play store rating: 4.4/5 Stars
Downloads: +5 Million
Available on: Android, IoS, Windows

This is my personal favorite mobile app for stock market news and updates. If you are planning to keep only one stock market app on your smartphone, then I will highly recommend you to have this one. Money control app is simple, yet have tons of information and news.

You can track the latest updates on Indian and Global financial markets on your smartphone with the Moneycontrol App. It covers multiple assets from BSE, NSE, MCX and NCDEX exchanges, so you can track Indices (Sensex & Nifty), Stocks, Futures, Options, Mutual Funds, Commodities and Currencies with ease.

Features:

  • Ease of Use: Easy navigation to all financial data, portfolio, watchlist and message board. Single search bar with voice search for stocks, indices, mutual funds, commodities, news, etc
  • Latest Market Data: Latest quotes of stocks, F&O, mutual funds, commodities and currencies from BSE, NSE, MCX, and NCDEX
  • News: All-day coverage of news related to markets, business and economy; plus interviews of senior management
  • Portfolio: Easy monitoring your portfolio across Stocks, Mutual Funds, ULIPs, and Bullion. Timely updates on performance of your portfolio, and news & alerts relating to stocks you hold
  • Personalized Watchlist: Adding your favorite stocks, mutual funds, commodities, futures, and currencies to monitor. Get timely alerts in form of news and corporate action
  • Message Board: Follow your favorite topics and the top borders to get recommendations. Engage and participate in conversations relating to your portfolio or interest

Download here

Source: Money Control


2. Economic Times(ET) Markets

best stock market apps et market

Play store rating: 4.2/5 Stars
Downloads: +1 Million
Available on: Android, IoS, Windows

This is another of the best stock market apps. I regularly use ET Markets app for reading market news and updates as they provide best latest news.

Features:

  • To track BSE Sensex, NSE Nifty charts live and get share prices with advanced technical charting.
  • Follow stock quotes real time, get tips on intraday trading, stock futures, commodities, forex market, ETFs on the go.
  • One-stop destination for mutual fund news, NAVs, portfolio updates, fund analysis, SIP calculator
  • Simple swipe to build, manage and access your portfolio; get customized news, analysis and data of the Indian stock market
  • To create your watchlist and track them regularly
  • Get analyses/expert views delivered to you, participate in discussions/conversations through comments

Download here


3. Yahoo Finance

best stock market apps yahoo finance

Play store rating: 4.4/5 Stars
Downloads: +1 Million
Available on: Android, IoS, Windows

First of all, after downloading this app, you need to change the settings. In the region settings, select ‘India (English)’ for getting the updates about Indian stock market.

The simple yet dynamic user interface makes it one of the best stock market apps for stock research.

Features:

  • Follow the stocks you care about most and get personalized news and alerts.
  • Access real-time stock information and investment updates to stay on top of the market.
  • Add stocks to watchlists to get real-time stock quotes and personalized news
  • Track the performance of your personal portfolio.
  • Find all the financial information you need with sleek, intuitive navigation
  • Go beyond stocks and track currencies, bonds, commodities, equities, world indices, futures, and more
  • Compare stocks with interactive full-screen charts

Download here


4. NSE Mobile Trading

best stock market apps nse trading app

Play store rating: 4.1 Stars
Downloads: +1 Million
Available on: Android, IoS, Windows

Another one of the best stock market apps in India. This app provides the freedom to trade hassle free anywhere and at any time. After downloading the app, you can get the User ID and Password by your NSE registered Trading Member. Further, you can call 1800 266 0052 (Toll-Free) for assistance

Features:

  • Real-time streaming quotes, with a simple and user-friendly interface for all type of users.
  • A comprehensive trading and market monitoring platform.

Download here.


5. Investar

best stock market apps investrar

Play store rating: 4.0/5 Stars
Downloads: +100,000
Available on: Android, IoS

The simple navigation and interactive charts with zoom features make it one of the best stock market apps. It is a great app for technical analysis on your smartphone or tablet.

Features:

  • Live intraday candlestick chart updates (Stocks/FO) (1-min or 5-min, depending on the subscription type)
  • Live NSE Stocks/F&O updates.
  • Unlimited watch-lists.
  • Technical indicators like (EMA, SMA, MACD, RSI, STOCHASTICS, VOLUME, OPEN INTEREST, ADX, BOLLINGER-BANDS)
  • Pivot-point based resistance & support levels.
  • Push Notifications

Download here


6. Stock Watch

best stock market apps stock watch

Play store rating: 4.2/5 Stars
Downloads: +1 Million
Available on: Android

This is simple, easy and well-categorized app. The friendly user interface makes it the best stock market apps for tracking portfolio and creating a watchlist.

Features:

  • Live Stock Quote: Live feeds ensure the fastest quotes! Stay on top of the Nifty and Sensex with intraday charts and tallies of daily gainers and losers in Indian markets.
  • Stock tips: Get Indian stock tips from market experts
  • Stock Search: On device Search-Suggest feature. Saves you the effort to type out entire company name and helps find stocks faster
  • Stocks Watchlist: Keep a close watch on stocks most critical to you! Update by the tick. Latest and fastest refresh cycles. Sort by Name, Price, Change and % change.
  • Finance/Business News: Get the most relevant news that makes the market across ALL business sources. Check news on Indian markets and stocks, updated regularly
  • Global Indices: Get a snapshot of leading global indices in one place.

Download here


7. Stock Edge

stock edge

Play store rating: 4.7/5 Stars
Downloads: +500,000
Available on: Android, iOS

Stock Edge helps Indian Stock market traders and investors do their own research and take better decisions by providing them with end-of-day analytics and visualizations and alerts.

Features:

  • Daily Updates Section for filtered major market tracking with News, NSE & BSE Corporate Announcements, Forthcoming events, & Corporate Actions and more.
  • FII/ FPI & DII Cash and Derivatives with strong historical data visualization Daily, Monthly & Yearly.
  • Opportunity Scans: Price Scans, Last week high/ low, Last Month high/ low, 52 weeks high/low, 3 days price behavior etc
  • Track what Big Indian Investors are doing. Use MyInvestorGroup section to create your own group of Investors with their multiple names/entities etc
  • Sector Research: Sector List, Industries in a sector, Companies in a sector/Industry, Price Movement of last 30 days presented in a simple graph, Gainers, Losers etc.

Download Here


BONUS:

1. Trade Brains -Learn to Invest

trade brains learning app

Play store rating: 4.6/5 Stars
Available on: Android

Trade brains is a FREE financial education app focused on teaching stock market investing and personal finance to the DIY (do-it-yourself) Investors. Trade Brains app will guide you on how to invest in the Indian stock market with simple, easy-to-understand and original contents.

Features:

  • Pocket guide for stock market Investment
  • Step-by-step stock investing lessons.
  • Easy to understand contents of various investment concepts and strategies.
  • Best Investment quotes.
  • Any content can be shared with a simple click.
  • Bookmark your favorite content to read/revise later
  • Topic requests by the users.

DOWNLOAD HERE


2. Market Mojo

best stock market apps market mojo

Play store rating: 4.5/5 Stars
Downloads: +50,000
Available on: Android

This is a new yet powerful app for stock market research. Market Mojo is great for fundamental analysis of stocks. It offers pre-analyzed information on all stocks, all financials, all news, all price movement, all broker recommendations, all technicals and everything that matters in the Indian stock markets.

Features:

  • The Mojo Quality rank reflects the company’s long-term performance vs its peers.
  • Its Valuation determines how the stock is valued at its current price
  • The current financial trend indicates if the company is currently on a growth path and its ability to generate profits.
  • The Portfolio Analyser evaluates every hidden opportunity and risk in the portfolio and tells the investor what he should be doing rather than what he should be just tracking. Every portfolio goes through our test of seven parameters-Returns, Risk, Diversification, Liquidity, Quality, Valuation & Financial Trend

Download Here


That’s all. I hope this blog post ‘7 Best Stock Market Apps that makes Stock Research 10x Easier’ is useful to the readers.

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!

Please comment below which Stock market app is your favourite?

Hi, I am Kritesh, an NSE Certified Equity Fundamental Analyst and an electrical engineer (NIT Warangal) by qualification. I have a passion for stocks and have spent my last 4+ years learning, investing and educating people about stock market investing. And so, I am delighted to share my learnings with you. #HappyInvesting

10 Common Stocks at Rs 100 or less as Market Price

10 Common Stocks at Rs 100 or less as Market Price.

10 Common Stocks at Rs 100 or less as Market Price. Many people think that they require huge lot of money to invest in share market. But it is not so true.There are lots of company in Indian stock market whose market price is even less than the cost of a burger.

There are a number of penny stocks trading between Rs 1 to 10 (find more here). Even, big companies like Ashok leyland, Tata Power, Steel Authority etc are also selling at a market price lower that Rs 100. So, today I am listing the list of such 10 Common Stocks at Rs 100 or less as Market Price.

10 Common Stocks at Rs 100 or less as Market Price

S.No Company Price (In Rs)
1 Idea Cellular 86.70
2 Federal Bank 92.70
3 Ashok Leyland 82.50
4 Tata Power 85.55
5 Crompton Greaves 79.50
6 IDBI Bank 75.10
7 National HyroElectric Power Corporation (NHPC) 32.25
8 Reliance comm 36.80
9 SAIL (Steel Authority India Ltd) 63.85
10 Bombay Dyeing 83.50

Funny, the stock prices of these companies are even less than the Ola or Uber ride fare.  Still people speculate that buying stocks are expensive.

In addition, you can further find a list of large number of stocks, who range from RS 1 to 100  here: http://money.rediff.com/companies/price-sorted/10-100

Disclaimer: Please note that I am not recommending  you to buy these stocks just because their price is low. You should always buy a stock only when its selling at a bargain price. Bargain stocks are not such stocks whose share price is low. Its those stocks which are trading at a much lower than its intrinsic value.

Tags: 10 Common Stocks at Rs 100 or less, Indian stock market 10 Common Stocks at Rs 100 or less as Market Price, 10 Common Stocks at Rs 100 or less as Market Price in India

Hi, I am Kritesh, an NSE Certified Equity Fundamental Analyst and an electrical engineer (NIT Warangal) by qualification. I have a passion for stocks and have spent my last 4+ years learning, investing and educating people about stock market investing. And so, I am delighted to share my learnings with you. #HappyInvesting

10 Common Stocks that gave more than 100% return last year

10 Common Stocks that Gave More Than 100% Return Last Year -2017

10 Common Stocks that gave more than 100% return last year. Peter lynch, the legendary investor and fund manager, used to say ‘‘Invest in what you know’’ in his best-selling book “One up on the Wall Street”. By this he means –‘there are a number of common stocks which anyone can find easily around them if they are looking’. You do not need to find a rare petroleum stock which no over has ever heard.  You just have to look around and find some decent companies in your surroundings to invest in.

“Know what you own, and know why you own it.”

“The simpler it is, the better I like it.”

“The worst thing you can do is invest in companies you know nothing about. Unfortunately, buying stocks on ignorance is still a popular American pastime.”

– Peter Lynch

So, toady I have compiled a list of 10 such common stocks which a common people could have found easily while walking in their city or during travelling in the city-bus.

Here is the list of the 10 Common Stocks that gave more than 100 percent return last year. I hope few of them are in your portfolio for over a year.

10 Common Stocks that gave more than 100% return last year.

STOCK 8-May-17 9-May-16 % Change
SENSEX 29926.15 25688.86 16.49
NIFTY 9314.05 7866.05 18.40
INDIAN BANK 352 92.9 278.90
RURAL ELECTRIFICATION 216.6 84.82 155.36
FEDERAL BANK 118.9 49.15 141.91
BAJAJ FINSERV 4409.05 1875 135.14
SUN TV 851 364.5 133.47
PUNJAB NATIONAL BANK 176 82.8 112.56
BANK OF INDIA 185.4 89.35 107.49
INDIAN IOL CORP (IOC) 428.55 209.9 104.16
JAYPEE INFRATECH 14 6.95 101.43
MRF 67501 33650 100.59

Here is the list of other six common stocks that has given more than 50 percent return for the last year.

Best book to learn investing mindset: Rich Dad Poor Dad: What the Rich Teach their Kids About Money that the Poor and Middle Class Do Not! I highly recommend you to read this book.

10 Common Stocks that gave more than 50% return last year.

STOCK 8-May-17 9-May-16 % Change
GITANJALI  GEMS 68.75 35.65 92.84
HPCL 531.5 278.5 90.84
MARUTI SUZUKI 6626 3846.5 72.26
YES BANK 1616.25 945.05 71.02
APOLLO TYRES 240.45 157.2 52.95
TATA COMM 652.05 429.08 51.96

 

Tags: 10 Common Stocks that gave more than 100% return last year, List of 10 Common Stocks that gave more than 100% return last year 2016-17

Hi, I am Kritesh, an NSE Certified Equity Fundamental Analyst and an electrical engineer (NIT Warangal) by qualification. I have a passion for stocks and have spent my last 4+ years learning, investing and educating people about stock market investing. And so, I am delighted to share my learnings with you. #HappyInvesting

BSE initial public offering 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.

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.

Demonetization effect on Banking, FMCG and Real Estate sectors 2016-17.

The demonetization of 500 and 1000 rupee notes have dipped market very badly as lots of investors started withdrawing money out of the market. Some sectors like real estate where most of the black money is involved has effected very poorly.

Here is the sector wise analysis of the stock-market due to the effect of demonetization.

Banking and Finance:

At first when the demonetization news was announced, investors thought that from then onwards each and every transaction in the market will happen through banks (which is true) so for the first 4 days the almost all the major banking companies SBI (10%), BOB (11.21%), ICICI (3.4%), PNB (13%), BOI (14.4%), Union Bank of India (11.4%) soared. After that cash was being accumulated into banks and there is no outflow of cash from the banks so investors thought companies has to pay the minimum 4% interest to the depositors and hence companies income through loans are low compared to depositors; so investors started losing confidence in banks from then onwards till Jan 1st almost all biggies SBI (13%), BOB (7.3%), ICICI (13%) , PNB (27.7%), BOI (14.2%) and Union bank of India (15.5%) share prices fell down.

Later Narendra Modi announced benefits on home loans of up to 9 lakhs; the poorest and the most underprivileged will get a 4% interest benefit. For home loans of up to 12 lakhs, they will get a 3% interest benefit and all the biggies announced lending rate cuts ranging from 40 to 90 basis points with this various companies will take loan from banks for development purpose, no of people buying homes will increase so in the upcoming few quarters banking sector has huge potential to grow up to 9.5%.

FMCG:

Due to demonetization customers dint have money to purchase daily consumable goods, so market value of FMCG went down due to less sales but after Dec 30 cash started flowing in the market so people started purchasing goods from the shops due to this market value of FMCG started increasing, Even though the share prices of these companies went down they will recover and bullish within 2 to 3 months.

Real estate:

We can see the real estate sector in two forms 1. Luxury homes sector and 2.Residential homes

  1. Luxury homes: – The luxury and high-end segments of residential real estate have seen a major impact, since the legal banking/financing channels have accounted for only a small part of all transactions in this space, which has seen many payments done in cash, which resulted in luxury properties dipping by 25%-30%. Prices of so many companies Delta crop (50%), DLF (27%), HDIL (27%) fell down drastically.
  1. Residential homes: – In this sector almost all the transactions happen through banking/ financial channels so even if the share prices of these companies fell down due to demonetization news such company share prices will correct within a few months. Some of the companies that is happening like this are KNR construction, Hindustan construction.