Bharat Entrepreneurs

The answer to this question changes from person to person. There can’t be one investment style suitable for everyone as every individual have different goals, different objectives, capability to invest and different personal characteristics, which determine the investment style of a person.

But just a second, first a person should find out whether investing in stock market is good choice for him. Before you decide to invest in stock market, ask a hypothetical question to yourself – what will you do if you come to know that stock market has crashed and your investment has reduced to half of the invested amount? Will you panic or will you be calm and quiet? If you panic, then go for mutual funds, government bonds, and insurance products but don’t invest in share market. If you can keep yourself calm and quiet, then stock market is a good choice for you as this indicates that you have faith in the Indian economy and you have the understanding that the market will go high once again. It’s just a matter of time and your share prices will rise and you will recover your money.

Let’s go back to the main topic of our article ‘How to invest in the Stock Market?’

The answer to this question depends on the individual’s objectives which he wants to attain from the stock market. Whether he wants to speculate and earn some quick money or he wants to invest for long term. If a person is clear about his objectives, it will help him in selecting the stocks in which he should invest. Every decision should be taken after doing proper research and money should be invested only in the stocks of those firms who are fundamentally sound. The professional assistance is also available nowadays, but don’t make a move until and unless you are full confident about it, as it’s your hard earn money on stake and you will be the one who will be suffer losses if something goes wrong. So one thing that should be always be kept in mind ‘NEVER DEPEND ON ONLY ONE SOURCE OF INFORMATION’.

There is one who can give your absolutely correct advice as the stock market is a market where there is nothing certain. You will make mistakes, wrong decisions will be taken but the secret of success is learning from those mistakes and never repeat them. Rakesh Jhunjhunwala, a famous stock broker has once said on a TV interview ‘Either you don’t regret (wrong decisions) or you don’t come to the market’.

Some basic things to keep in mind while investing in Indian Stock Market:

1) When the market is very high, it will fall soon.

2) Don’t buy when the market is very high, wait for the prices to come down and then buy.

3) Keep yourself update by reading the financial newspapers, especially about those companies whose shares have been bought by you.

4) Don’t panic if market falls.

In the present scenario, where market is so volatile that it is gaining 300 points one day and losing 700 points the other day, it’s advisable to avoid speculation. In this scenario, it will be good for retail investors to stay away from the market, even if you want to invest, prefer those firms which derive the major amount of their profit from domestic economy as they would be least effected from the recession in the US economy.

Popularity: 15%

How do you think the market will react after budget? Which sector is good for investing - pharma or IT? Should I apply for this IPO? At what price will this share be listed? Is this share good for the long term or the short term?

Well, these are the questions or topics that you can find people discussing nowadays. Everyone wants to invest in shares as they see it as a fast medium to earn money. However, there are many factors which should be kept in mind while investing your hard earned money in the share market.

Before we talk about the other issues related to Indian stock market, let us find out how it all started.

It all started in 1875, when 318 persons came together to form Native Shares and Stock Brokers Association and the membership fee was Re.1.00. This association is now known as the Bombay Stock Exchange (BSE) and in 1965 it was given permanent recognition by the Government of India. National Stock Exchange (NSE) is the second popular stock market of India. Sensex or the 30 stock sensitive index was first compiled in 1986. Nifty is the stock sensitive index for NSE.

In 1992, the Securities Exchange Board of India (SEBI) was formed by the Government of India through an Act, in order to keep an eye on the working of Stock Markets. This move was made as a result of the scam by Harshad Mehta, a stock broker. This scam made 8 to 12 million investors bankrupt. SEBI acts as a watchdog and works in order to protect the rights and interests of investors.

The increasing popularity of the stock market can be understood by the fact that 10 lakh demat accounts were applied for in 4 days, in order to apply for Reliance Power IPO.

Indian stock market is such a vast topic that a discussion on this topic will never end. So let’s start it now.

Popularity: 26%