Share Market

Share Market is the backbone of the Economy of the Country where shares, debentures and other instruments were  traded in the market. These shares and debentures are sale and purchased by the investors depending on the future  earning of the particular company under prescribed platform called stock exchange.

Mumbai Stock Exchange and the National Stock Exchanges are the main stock exchanges of India. There are several other stock exchanges in India like Kolkata stock exchange, Kanpur stock exchange etc.

Stocks and shares

It is not possible for any individual industrialist to invest .large amount of capital(money) in any project  thus they form Public Limited Company consisting share  capital the certain percent of the Capital were then kept by the promoters of the Company and rest were sold to the Public and other Domestic and Foreign Investor  by Initial Public Offer under strict supervision and rules of The Government authorized body.

In India it is under the control of SEBI ( Securities  Exchange  Board of India.

Role of SEBI in India

The work of the SEBI are as under

• To Protect the interest of small investors from the fraudulent companies.
• To arrange the seminars to aware the investors
• To continuous checking of the  Public Limited Companies
• To issue the guidelines to prevent the fraud either by the Company or by the other speculative persons who captured the large amount of shares and manipulated the priceof the shares and sold the shares at higher prices and exist the counter.
• Ministry of Company Affair is also doing several works  to protect the interest of the small investor.

What is Investment

The real meaning of Investment is the money saved from Income puts in any place for the purpose of profit at least higher than the inflation.   In  hindi it is called Nivesha.

People invest their money in several other places along with the share market like Gold, Property, Bank’s and other Fixed deposits, Government Securities and mutual funds etc.

It is proven that the money invested in the Stocks and shares after proper selection gave higher returns to their investors than the other form of investments like Gold, land etc,

Infosys, Wipro, Tata Group, Reliance Ind to name a few, which gave lot to their investors.

Even though the Investment in shares are profitable than other instruments people often lost their hard earned money in the shares and stocks, and blamed the shares despite their mistakes during investments.

Selection of Stocks

It is not necessary that every investment grew many fold  like  Infosys, Wipro, Tata Group, Reliance Ind though the good selection of the stocks can give handsome return over and above the Inflation.

Proper research of stocks and shares require for the selection either by fundamental analysis or by technical analysis

Warren Buffet is a best example for his fundamental research in shares and stocks and made several amount of money becomes the richest in the World, though there is several other people earned profits from their technical research.

Fundamental Analysis

Fundamental of the selected shares were analyzed as under

• Industry in which the shares belongs and the market potential  of the Industry along with the Government Policy for the Industry.
• Tax benefits to the Company
• Proper analysis of the accounts of the Company i.e. Balance sheet and Profit and Loss
• Percentage increase of sales, profit of the Company and the Raw material consumed  YOY basis.
• Raw material availability and transportation facilities available to the Company.
• The GPM and NPM of the Company YOY basis.
•  Industry’s  PE ratio and future expected earning of the Company

Technical Analysis

• Datas of the selected stocks were kept for the purpose of technical analysis
• Several technical methods were adopt in technical analysis like RSI (Relative Strength Index, Dowse Pattern, Candle Stick Chart etc.
• There are so many calculation required for technical analysis like RSI, Moving averages, average price etc

The selection of stocks is not an easy task thus investors rely on investment magazines like Capital Market, Dalal Street and  business channels  like Zee business CNBC Awaz along with the several Investment advisor portals. Angel Broking Moti Lal Oswal etc.



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