Indian Stock Market : Share market India
Indian Stock Market is a marketplace where organised exchange (buy OR sell) of stocks or equities takes place. Indian stock markets are one of the most dynamic and efficient stock markets in Asia till 2008 Mid. Recession has taken up all predictions wrong. In terms of the make up and overall dynamics, the Indian stock markets are at par with international standards. The two national exchanges operating in India are the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). These exchanges are well equipped with electronic trading platforms and handle large volume of transactions on a daily basis.
Share Market India : The shares actually provide information about the performance of the company. Higher the value of the share means that the company is making profit. The Stock Market in India is an important part of the Indian economy and the yardstock for the growth of the economy of the country.
The Mumbai (Bombay) Stock Exchange is the oldest stock exchange of stock market India. It was set up in the year 1875. There are around 6000 companies shares listed under the Mumbai (Bombay) Stock Exchange.
Presently there are about 22 stock exchanges in the stock market India. There are other stock exchanges in the stock market in India such as Calcutta, Bangalore, Chennai, Ahmedabad, Delhi, etc. The stock market in India also has a National Stock Exchange (NSE) situated in Mumbai. The stock market in India comprises of an Over The Counter Exchange of India (OTCEI) for the listing of the medium sized and small sized organizations. The Securities and Exchange Board of India (SEBI), which is a regulatory organization overseeing the working of the stock exchanges in India.
Transparency is a very important factor for a company to trade in the stock market. The major fundamentals of the company which influences the investors are income, liabilities, revenues, assets, infrastructure, etc and the company has to be very transparent about these facts.
The Indian Stock Market serves as a platform for infrastructural development and expansion plans of the new companies. The companies may raise funds through the distribution of their equity shares to the public.
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What to look for while doing intraday trading:
The purpose of intraday trading is to register small profits which can be average out at the end of market sessions. Investor need not wait to book the profits only when there is considerable difference between the last traded prices. Thus book the profits even at the minimum level. They need to do buying and selling on marginal profits; it should not be the situation of the overbought or oversold.
Choose those stocks where there is huge volatility , which means look for stocks which are sensitive to the price volatility , thus the movement of up and down of a share price should be high , they should not be slow moving stocks and momentum should be there every time. The rate should be so high so that the intra day trading can take place and then only aggressive buying and selling will takes place. Such stocks are very sensitive to the daily rumours and to the news, these are the most traded stock but it may not be necessary that they belong to the blue chip companies only, you can find such stocks in the mid cap section too. Some penny stocks also have big price fluctuation range. An investor need to be cautious that there are many stocks which are quiet for some time on the market and suddenly they gain momentum and will come into limelight, be away from such stocks they do not have any volatility only once in a year or so they become active, such stocks have volatility of only few minutes, again they will disappear.
Not only the price volatility to be observed there are many such stocks that may not have so much fluctuation in price, but they are traded in volumes, an investor can book profits on trading on large volumes at a small price thus the profits can be averaged at the end of the session. A perfect example is Reliance; it is the most traded stock in terms of volumes. Investors’ trade heavily in volumes with such stocks, however such stock may not have price volatility, but they are still favourites among the intra day traders.
One important point to be considered that investor need to be realistic, it may not happen that the investors are every time booking profits, even if they are into loss they should understand how to control such losses and should opt for the stop loss order and they should considered as to how much capital they are committed to put at stake in the market.