Indian Stock Market Basics For Beginners

Indian Stock Market Basics For Beginners

We all know the importance of investing at an early age. Investing in the share market or your financial assets will give you higher returns in the future. Furthermore, based on how much risk you can take, you have to invest money in share markets. In the Indian market, various investment options are available, where you can invest, like SIP, Mutual Funds, IPO, Bonds, Debentures, etc.

However, the Indian Stock Market trading takes place in two stock exchanges: The (BSE) refers to the Bombay Stock Exchange since 1875, and (NSE) refers to the National Stock Exchange which started trading in 1994. BSE investment option is considered to be the Indian stock market basics for beginners and NSE is considered for more experienced investors and traders.

Here we are going to tell you the Indian stock market basics for beginners step by step. Let’s get started.

“I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.” — Warren Buffett

Also, read| How to Read Stock Chart for Beginners and Dummies to Become Rich Investor

Table of Contents

What Is A Share Market?

A market where shares are issued for the people and traded is called a share market. The share market only allows you to trade shares, whereas, the stock market allows you to invest and trade shares, bonds, mutual funds, and derivatives of companies.

Types Of Share Markets

Types of share markets

There are two types of share markets:-

  1. Primary share market
  2. Secondary share market

1- Primary Market

  • In the primary market, a company first registers itself to raise money and in return, it issues some part of shares to the fund providers.
  • If the company happens to sell its first-time shares, it is called an initial public offering.

Investing In Primary Share Market

Step 1- Investing in the primary share market can be done through IPO (Initial Public Offering).

Step 2- Having a Demat Account is necessary for the investor for holding electronic copies of shares.

Step 3- A trading Account is also important, as it will help you in online buying and selling of shares.

Step 4- The number of shares will only be allotted to a trader by checking the market reaction to the IPO.

2- Secondary  Market

  • After all the shares provided by the company are sold in the primary market,  they are being traded in the secondary market.
  • The secondary market facilitates the investors by the opportunity to end their investments and sell their purchased shares.
  • The market mostly comprises transactions that deal with the selling and buying of shares from one investor to another at the market rate of shares.

Investing In Secondary Share Market

Step 1- Like the primary market for starting investing in the secondary market, you need to have a Demat and Trading account.

Step 2- The account should need to be linked with a pre-existing account.

Step 3- Now, log in to your trading account and start selling or buying shares.

Step 4- Check that your account has enough funds to buy shares.

Step 5- In the next step, for buying and selling shares you have to decide on a price. Be, patient and wait for the buyers and seller to respond.

Step 6- At last, Transfer money/shares in exchange for money/shares and complete your investment transaction.

What Are Shares?

Shares are referred to the amount of ownership an individual holds in a company. You are a shareholder or investor if you hold a percentage of ownership of a company. Company’s profits will add value/benefits to shareholder and if company bear any loss shareholder have to participate in that loss.

Why Do Companies Need Shares?

Why Do Companies Need Shares

Companies need shares for the following reasons-

1- Rise capital- Example, someone want to expand the business and he/she wants 5 Lakh more to expand. What they will do is an IPO. I will sell my company shares to the public for generating funds. This will eventually help me in expanding my business and people who are buying it will hold a percentage of ownership of a company.

2- Avoid Debt- Companies usually buy shares to avoid debt. The owner easily can raise funds without borrowing i.e taking debt.

3- Expanding Funding- Companies sells share in specific time to expand funding.

4- Intangible Purpose- Shares can be utilized for intangible purposes. Understand with an example- Companies name listed on NSE is a reputation achievement for a company as compared to its competitors.

Why Do Companies Offer Shares?

The official confirmation of a company to the stock exchange is only confirmed after the company offers its share to the general public on the stock exchange. The company receives financial assistance or liquidity from the sale of shares to invest in further business activities.

How Does A Company List Its Shares?

Companies, through IPO (Initial Public Offering), offer their shares to the public. The first time any company offers its share to the public it is described as IPO. For a company to list its IPO on the exchanges, SEBI (Securities and Exchange Board of India ) has set certain rules and regulations. The company has to follow the rules/regulations of SEBI before they are eligible for listing.

What Is SEBI?

  • SEBI the “Securities and Exchange Board of India” was established in 1992.
  • Monitoring and regulating “Indian capital and  Indian capital and securities market” is the basic purpose of SEBI.
  • SEBI protects investors’ interests from fraud transactions by regulating and forming new guidelines to monitor that.
  • It prohibits any fraudulent transaction made by an investor, trader, etc inside the Indian capital and securities market or related to it.
  • It prohibits unfair trade practices.
  • Ensure that investors are been taught and educated about intermediaries of the securities market.

What Do Nifty And Sensex Mean?

Nifty and Sensex are stock market indices that are used to statistically summarise the movements of the stock market in the present time. SENSEX stands for ‘Stock Exchange Sensitive index’ which measures the real-time movements of the Bombay stock exchange. Whereas, NIFTY stands for ‘National Stock Exchange Fifty’ which measures the real-time activities of the National Stock exchange.

Why Invest In Share Market?

Why Invest In Share Market

There are many advantages of investing in shares-

1- Capital Growth- The goal objective of purchasing a share is to resell it when the price of the share gets high. When you resell a share more than the price you purchased is what is called “Capital Gain”.

2- Dividends- Th reward in cash given to shareholders from the part of profit a company made is called a Dividend. The bigger the shareholding one has, the more money he gets is as simple as.

3- Liquidity- Shares are liquid in form. For instance, you can purchase a share and can sell it instantly. No requirement of intermediate is needed in purchasing of shares. Hence, rather than redemption of share you can sell share parcel.

4- Shareholder Benefits-  From purchasing goods and services from the shareholder’s companies “like-  entertainment, hospitality, financial services, and retail” or their affiliates. The shareholder gets discount benefits. Of course, you need to own several shares to qualify for such benefits.

What Is Sold At The Share Market?

1- Shares

A share is a unit meaning value owned in an enterprise that exists as a monetary resource giving fair circulation to any benefits procured. Purchasing shares, then, means that you get an ownership stake in the company you’re purchasing shares from. In this case, if an organization becomes profitable after some time, investors are rewarded with profit. Shares are often sold by brokers at a price greater than what they bought them for.

2- Bonds

Cash is required by a business so it can fund projects. As a result of their ventures, they receive profits from the income derived from their investments. Using bonds to raise capital for activities and other processes is a method of raising capital. If an organization needs cash from a bank, it takes out an advance, which it then repays through installments. Additionally, when a company chooses to receive funds from different investors, it is referred to as a bond, which is similarly paid off by convenient interest installments.

Consider that you will probably start a project in two years that will earn you money. To begin this venture, you’ll need some underlying resources. Consider obtaining the necessary funds as an advance from a friend and expressing on the receipt that you owe them *1 lakh which you will repay in five years with a 5.0% interest rate. This receipt is currently in the possession of your friends. Essentially, they have recently financed your company with money to buy bonds. Because you have vowed to pay the main sum at a 5% premium, you finally end your principal payment at the end of the fifth year.

3- Mutual Funds

Mutual funds provide you with an opportunity to invest in a complex financial market. A mutual fund offers a variety of equity funds, derivatives, floating-rate debt funds, and debt funds. Mutual funds are chosen after great research from the investors as well as the managers of the financial institution, it depends upon factors like volatility, FAMA model, risk-return, rolling return looked upon with how the funds have been performing in past cycles.

4- Derivatives

The market value of shares listed are fluctuates so, it is difficult to keep up with the same price of a share to sell or buy this where derivatives help. Derivatives are the instruments that allow the investors to fix an average price of the share on which it can be traded even after a long term.

Types Of Stocks To Invest In Share Market

Types Of Stocks To Invest In Share Market

These are the most popular types of stocks to invest in the share market-

Large-Cap Stocks- Big companies stocks, worth more than $10 Billion. Which are more established with large reserves of cash at their disposal. It allows investors to receive higher dividends as compared to stocks of small and mid-cap companies. Large-cap stocks ensure that capital is protected over the long term.

Mid-Cap Stocks- Company worth $2 Billion and $10 Billion. They are attractive investment opportunities because of less risk and growth opportunities. Examples of mid-cap companies are  GrubHub, Dunkin Donuts, etc. Mid-cap stocks are well-named companies in the market.

Small-Cap Stocks- These are companies usually worth less than $2 Billion. Small-cap stocks include regional banks, retail brands, etc. As the name suggests, small-cap stocks have the smallest value as compared to large or mid-cap stocks. The future growth opportunities of these companies are better.

Investors who are committed to the long term, aren’t too worried about current dividends, and stand calm if the price may change, can make significant gains in the future. During a recession or economic crisis, small-cap stocks are vulnerable. Still, high-risk small-cap stocks are high rewarding also.

How To Invest In Stock Market For Beginners?

How To Invest In Stock Market For Beginners

1- Documents Required For Investing In Stocks/Shares

  • PAN Card
  • Aadhaar Card
  • Canceled cheque from the activated bank account of yours
  • Your residence proof
  • Income certificate/payslip
  • Passport-sized photographs

2- Demat Account

  • A Demat account is an account that is utilized to hold shares and securities in electronic form.
  • As the name suggests, a dematerialized account is a Demat account.
  • Individuals opened Demat accounts to hold shares that were purchased and dematerialized.
  • Dematerialized means to change the form of shares from physical to electronic mode, this makes trading of shares an easy and simple task to do.
  • In India, depositories like NSDL and CDSL provide free-of-cost Demat accounts to the investors through mediators/Depository Participant/Stock Broker.
  • A Demat account imposes different charges based on the number of shares it holds the account, the type of securities held, and the terms of the brokerage agreement.

3- Trading Account

  • Equity shares are being sold or bought in the stock market and to inhibit the process trading account is used.
  • In this system, the brokers or financial agents convey bids for the share through linguistic or gestures form of communication
  • In the technologically updated era, the stocks are purchased or being traded virtually in the stock market through the trading account.
  • Buyers and sellers both are selling and purchasing the shares virtually through the website or apps available on the internet

4- Linked Bank Account

  • As the investor chooses to invest in the stock market, he/she will be buying the stocks over time to ease this process.
  • For this one will require to have a bank account that is linked to the trading account.
  • Nowadays, you can find many accounts which serve both as trading and Demat accounts, and sometimes brokers also offer three-in-one accounts where it is easy to trade and store stocks and shares in the same place.

Steps To Invest In The Stock Market 

  1. First of all, choose an online broker. You can buy and sell shares and take part in a variety of other share market activities by selecting an online stock broker
  2. Before investing your hard-earned money, it is advisable for the investor to research which type and where to invest in the share market
  3. After choosing your desirable stocks or shares, you should decide how many shares you have to buy according to the amount of money you are willing to invest.
  4. If you want to purchase stocks, ask your broker about the price of the desired stocks.
  5. Differentiate between the highest and lowest bid price.
  6. Place a request to buy the given stock or share at the given price.
  7. Specifically, mention the number of shares you wish to purchase.
  8. Pay the broker the total amount of money through an online transaction according to the number of shares you told them to purchase.
  9. A receipt will be generated and will be shown in your account for the order your broker placed on your behalf.
  10. A certificate will be generated under your name given by the company you purchased the share of and you are now a successful stakeholder in their company
  11. Now, pay your broker its demanded fees and you are all set to invest for the next time.

How To Start Investing In Share Market

How To Start Investing In Share Market

As a beginner in the investment field, you need to be very concerned, educated about what and how you are investing. Keeping aside your excitement and being focused and educated will only help you in investment field. These are some tips for beginners, How they can invest in the stock market-

1- Decide Your Investment Approach

  • Why and how to start investing, are to keep in mind before investing.
  • Then decide your investment approach, i.e whether you want to invest through Individual stocks, Index funds, Robo- Advisors.

2- Decide Your Investment Cost

  • Brainstorm and decide, how much money you want to invest in the stock market.
  • Like share markets where you see a rise in the long run. You can’t see that kind of rise in uncertainty in stock prices.
  • During, COVID pandemic there was a drop of 40% in the stock market. But within a few months, it reaches back high again.
  • So while investing in the stock market you need to be more patient about uncertainty.

Pro-Tip- It’s easy to handle ups and downs in young age, rather than when you are retired or old. That’s why invetsing in young age is advisable.

3- Open An Investment Account

  • Foy buying stocks, you need to have a brokerage account.
  • For this, you need a “brokerage account” for buying and selling stocks.
  • Don’t worry, it will only take a few minutes to open a brokerage account.
  • Through EFT transfer, by wiring money, or by mailing a check you can fill your brokerage account.
  • In the next step, you need to choose which type or for which purpose you are opening a brokerage account.
  • For, learning the concepts of stock market investing, a standard brokerage account, and an individual retirement account (IRA) is advisable. These will allow you to buy stocks, ETF’s, etc. The main purpose is to make money access easy and make your first investing experience easy.
  • 1- If you want to invest more than IRA ( individual retirement account) contribution limit. A standard brokerage account is preferred. These are specially for those who want money access easy and are investing a small expenditure for a time period.
  • 2- If you are retired and want a relaxed retirement life, IRA (individual retirement account) is for you. IRA accounts come in two forms “Traditional” and “Roth IRAs”. There are specialized IRAs for self-employed individuals and small business owners. In IRA’s withdrawal of money can be difficult, as you grow older.

Pro-Tip- Compare the cost and features among various online brokers.

4- Choose Your Stocks

  • After deciding what and how to buy. Now, you need stocks to buy so you can start investing.
  • Diversify your portfolio i.e. consider different companies in your portfolio before buying.
  • No need to get confused between different company’s stocks. You can either stick to one company and evaluate it.
  • Yes, buying stocks with a high growth prospectus, is an easy and good way to form wealth. But, it is advisable to do it when you are experienced.
  • After selecting the stocks, educate yourself about them.

5- Continue Investing

  • Buy stocks from companies and patiently hold them, until you need money.
  • Risk-taking ability will build in you.
  • Over time, with more experience, you will become a good investor.

Things To Keep In Mind Before Investing

Things To Keep In Mind Before Investing

The stock market is not that difficult as it looks until you start investing. Mentioned below are some ideas to keep in mind before investing-

1- Diviserfication of portfoilo

  • A diversified portfolio is the best to pick.
  • It will help you to allocate your funds.
  • Not just stick to one assets class, add different assets classes to your portfolio.
  • For example, equity is placed with investments in bonds or other debt instruments.
  • This balance in a portfolio can secure one against a period of market crisis.

2- Check your investor profile

  • The most important step before starting investing.
  • Checking your investor’s profile can reveal what type of equipment is best suited.
  • Understanding the suitable equipment can guarantee that you are taking appropriate risks for your life.

3- Plan your investment 

  • You can stop dangers if you have an investment plan.
  • How much revenue do you expect from investments?
  • How much time do you have to give investment?

Risk appetite and patience are the success keys to investment.

What Are Stock Exchanges?

The stock exchange is an entity authorized by the government through which publicly traded securities are traded. Stocks, bonds, and exchange-traded products (ETPs) are traded on stock exchanges.

Bombay stock exchange (BSE)

Bombay Stock Exchange is not only India’s but Asia’s oldest stock exchange. It was founded in 1875. It operates from Mumbai, Maharashtra, and is the largest stock exchange in India. The market capitalization of BSE was $2.8 trillion as of February 2021.

National stock exchange (NSE)

Founded in 1992, the NSE is the country’s primary stock exchange. For the first time in India, a decentralized electronic trading platform is available to investors. According to the latest records, NSE had a market capitalization of $2.27 trillion. NSE is also headquartered in Mumbai, Maharashtra.

India International Exchange (India INX)

India INX is an exchange that was founded in 2017. Founded in 2017, it is the first stock exchange for international trade in India. It operates in Gujarat International Finance Tec-City and is a subsidiary of BSE.

Metropolitan Stock Exchange (MSE)

MSE was founded in 2008 as the Metropolitan Stock Exchange. It was formed to clear and settle transactions involving a range of asset classes. The exchange is based in Mumbai, Maharashtra.

NSE IFSC Ltd (NSE International Exchange)

NSE IFSC Limited (NSE International Exchange) made its entrance into the year 2016 by becoming an international exchange. The exchange is a subsidiary of the NSE. It is in Gujarat International Finance Tec-City.

Best Performing Stocks To Invest Your Money In Recent Times

Best Performing Stocks To Invest Your Money In Recent Times

1- Larsen and Toubro

  • L&T is the largest owner of different infrastructure projects which are reported in the new Budget and the organization has an incredible history as well as created great financial roots and made throughout the long term.
  • The organization has conveyed ROEs of 14% reliability throughout the most recent 10 years with working finely to yield more than 15% over this period.
  • However, it keeps on changing at trading valuations with a PE under 15x, making it a worthwhile purchase.

2- Dr. Reddy’s

  • Presently, due to the increase in Covid-19 cases and the need for medical help, demand for drugs has increased and supported deals of players like Dr. Reddy’s who has been a reliable company by conveying stable net profit increased to 14%  in the most recent 10 years.
  • Pharma companies stocks have been underperformers for the beyond a couple of years and then with various factors on their side at present, things appear to be favoring particularly for this stock.

3- Dr. Lal Pathlabs

  • Dr. Lal Pathlabs also has been seeing an increase in testing demonstrative volumes around COVID-19.
  • However, had it not been intended for Covid, it would have still performed very much given that it’s been a steady capital generator and has conveyed ROCEs in the abundance of 30%.

4- Vinati Organics

  • Following rising pharma, the development in strength compound stocks is as of late moving.
  • With China being in a difficult situation, trades from India have increased.
  • It has conveyed ROCEs of more than 35% throughout the most recent 10 years and has developed benefits at 24% CAGR.

5- Pidilite Ltd

  • Pidilite Ltd also has been another promising player in the field of synthetic materials.
  • The organization has close syndication in both mechanical and purchaser types of glue just as related deals.
  • It has utilized its position all around ok to reliably convey magnificent investor returns and can be a decent purchase for your portfolio.

6- Coverage

  • Coverage has been playing as a midcap IT company for a long.
  • It is a decent pick for the investors as it has continued to expand its capital in recent times and it has already started to attract many investors which will lead them throughout the long term

7- Kotak Mahindra Bank

  • Amid the pandemic, the public authority found a way successful ways to guarantee that credit accessibility was not an issue for organizations.
  • Indeed, the RBI decreased loan fees and declared bans for borrowers to give them help.
  • While this was a positive advance, many banks have been wary and made adequate deals to protect their money.
  • Kotak Mahindra Bank is one such bank that raised assets toward the beginning of the pandemic and has been incredibly careful about lending. It has been providing great results of 20% to the investors.

8- HDFC Ltd

  • Another player profiting from lower rates is HDFC Ltd.
  • This NBFC has the brand, an accomplished administration group, and a portion of the overall industry in advances which makes it a genuine pioneer.

9- SBI Life Insurance

  • Insurance is one more subject which has gotten increase as of late and has gigantic development openings given its underpenetrated nature.
  • The organization orders a solid piece of the pie and keeps on acquiring as it offers a huge number of items.

When Can You Conduct Stock Market Transactions?

Learning stock basics is important to buy and sell shares. Stock market business hours in India run from 9:15 Am to 3:30 Pm. Only in market holidays stock market is closed. Like- Diwali, Independence Day, Eid, etc.

How Do You Make Money?

You buy stocks and resell them at a higher price, this is the basic fundamental of earning. There are two ways to do this. Mentioned below are steps for beginners to understand the difference between stock trading basics and stock investment basics-

1- Stock investors

  • Who keep money in stocks for a long time is defined as a stock investor.
  • Returns are received over a period of time. Maybe a month, a day, or yearly.
  • Investors fundamentally analyze things here.
  • Stock investors check the growth of the company. The investment will literally grow in a long way with the company.

2- Stock Traders

  • Within the same trading session, they sell and buy stocks.
  • Traders technically analyze things here.
  • Stock traders don’t have much time, they want quick gain.
  • Basics of Momentum oscillators, Bollinger bands, charts, etc you need to know for stock trading.

How Do You Start Trading Or Investing And Taxes

Follow these steps before starting trading or investing-

Step 1- Open demand and trading account.

Step 2- Brokers will provide you with a Demat and Trading account.

Step 3- Trading accounts are usually needed for buying and selling stocks.

Step 4- If you are a stock trader, a Demat account is not for you. For buying and selling stocks within the same day a Trading account is enough.

Step 5- In a Demat account shares are stored in an electronic form.

Step 6- For dematerializing shares in a Demat account, it takes 2 days normally.

Step 7- Credited and debited shares will start, when you start buying or selling them.

Step 8- Few taxes are applicable to the profit you gain.

Step 9- Tax in long-term capital gain (shareholders more than 1 year or more)- Tax on equity shares sale 10% over and above Rs. 1 Lakh

Step 10- Tax in short-term capital gain (shareholders less than 1 year)- Insecurities transaction tax is applicable 15%.

Share Market Tips For Beginners

Share Market Tips For Beginners

Investing in the share market is not simple as gambling. Deep research, analyzing the environment, proper planning, patience, market research, and other thing is required for it. Investment is a roller-coaster ride, some days it’s like “up above the sky” and some days like “have a great fall”. COVID pandemic is the biggest example of that. Stock markets are volatile in nature.

However, you must know the basic information about “How to invest” and to reach your financial goal. Here, we will tell you the best tips you can follow before going into the investment world.

1- Understand Your Investment Requirement

  • Every investor has their own sort of requirements, so setting goals according to them is a fundamental tool of success.
  • Understand, with an example- Rahul and Kaushal both are investors. Rahul wants to raise money in 7 months whereas Kaushal wants to raise money in 10 months. Both have different risk appetites. They both will need a different investment approach to fulfill and reach their goals.
  • Ask yourself, What are my financial goals? Whether you are investing to buy a car, a house, etc or you are investing for your retirement. These basic factors will make you opt right investment option for you and the risk factor also.
  • For how much time do I stay invested? Ask yourself! Normally investment for 7-10 years is considered ideal. But if you want to invest for a shorter period of time, it will help you to diversify your portfolio. Reaching towards your goals will be an easy task.
  • Your risk appetite. Ask yourself! Understanding your risk-taking ability and your patience level will surely gain you success in the reinvestment world. Risks like- Market risk, inflation, economic crisis, etc. COVID pandemic is the biggest example of that. 

Pro-Tip- Higher Risks = Higher possible Returns and vice versa. Keep in mind.

2- Avoid Emotionally Directed Decisions

  • Avoid emotionally-driven investment decisions.
  • The best example to understand this is the COVID pandemic, where investors in panic sold their stocks, so they might not bear any losses.
  • Selling stocks in the COVID pandemic was not a bad idea, because the situation was tense. But what happens after months? The stocks bounce back and reach high.
  • What needs to understand is that “Don’t sell stocks in panic”
  • The losses that investors have faced can be curbed if they are not emotionally driven.
  • Avoid investment decisions that are based on market volatility.
  • Make decisions only after proper analysis.

3- Expand

  • Earning more and reducing risk is the soul of investing.
  • Create a portfolio that minimizes your risk and expands your growth.
  • One security shouldn’t hamper your overall investment returns.
  • Diversification in investment is needed.
  • Expand your investment portfolio across various asset classes like gold, equities, real estate, etc.
  • Across market capitalization, Across sectors, Across geographies, you can diversify your investments.
  • Diversification should only be based on your risk tolerance capability.

4- Are You Investing Borrowed Money?

  • Brokerage firms lend money to firm time trading accounters, to invest in stocks.
  • The lending money comprises 50 % of the purchase value of stocks.
  • The risk of using this service is far bigger than the benefits.
  • Always limits your risk in the starting phase of investing.

5- Never Follow Market Trends/Experts Blindly

  • Don’t follow market trends or experts blindly. It can be dangerous.
  • Investors usually under speculation, invest more when the market is going high. Thinking that the market will rise further.
  • Following market trends blindly will let you buy or sell stocks that you don’t want.
  • Always make decisions without getting influenced by these factors.

6- You Are Not Astrologer, Never Try To Predict Market

  • Stay away from speculation.
  • Make decisions by analyzing data and factors of the company.
  • Don’t buy stocks with a perspective of buying them at a low price and selling high.
  • Prediction might save your time, but it is dangerous.
  • It will make you guess stocks price i.e. low or high. One or two times you can be right, but this can’t be a long-term investment strategy.
  • Prediction of stocks price can lose your money in the stock market. So, avoid prediction.
  • Investing in the same stock in regular intervals can benefit you. So, invest when stocks price fall.
  • Example- If you want to purchase 500 stocks of XYZ. Buy 50 stocks at first then wait, and when the price falls purchase another 50 stocks.
  • Use this investment strategy only when you are sure about a company.

Pro-Tip – Before buying stocks keep the comany’s monetary status in mind.

7- Have Realistic Returns Expectations

  • Stocks are known to be the best returns generator.
  • Expect, long-term returns according to investment.
  • Although the internet is full of stories with 100 % returns, they may be true or unreal also.
  • Always keep the returns expectations real, correlation with risk of the investment.

8- Monitor Your Investment On Daily Basis

  • Anything major that happens in any part of the world hampers the stock market.
  • Example- US/China trade war in 2019 hampers the stocks in India.
  • Sensible and careful investors keep track of all such major happenings.
  • Investors should always rebalance their portfolios with such major happenings.

Conclusion

Investment in the share market or other aspects needs patience. Investment demands proper planning, organizing, direction, understanding your risk appetite, and diversification of your portfolio. Understand the fraudsters around you and brainstorm before making decisions. Stocks will help you to generate wealth but it takes time, so keep patience.

Start investing at a young age it will help you advantage in the future. Check the major factors and rebalance your portfolio. Never try to predict stocks and always keep checking the price of stocks. Slowly but surely you will grow as a great investor with time. Just keep all the things in mind and all speculation away. We hope that the information and share market guide will make your investing journey easier.

FAQ’s Of Indian Stock Market 

Would I be able to trade when markets are shut or closed down?

You can’t trade after the market is shut or closed down. Even though exchanging no more requires actual presence it is absurd to expect to trade after the market is closed down. You can just trade between 09:15 am to 3:30 pm, but numerous uninvolved financial brokers trade in the time of exchanging hours. The orders put in the time of exchanging hours are called AMO or After Market Orders and they now and again make an unstable market.

What is the number of Sectors where I can put money into the Stock Market?

You can put money into 11 unique areas in the securities market. This kind of industry arrangement helps the portfolio administrator to balance out your portfolio

Is there any ideal opportunity for purchasing shares or doing although trade?

Yes, you can just trade between 09:15 am to 3:30 pm on non-weekend days. In any case, you can submit AMO kind of requests after these exchanging hours.

Is it safe to put money into Unlisted Stocks as a beginner in the stock market?

Many new investors have queries regarding the questions for unlisted stocks. Investing money in unlisted stocks requires patience and mastery which comes to you when you continuously invest in the share market.

What are the documents you need while investing in the stock market?

PAN Card Aadhaar Card, canceled cheque from the activated bank account of yours, Your residence proof, Income certificate/payslip, Passport-sized photographs.

Will my broker charge any sort of fees while investing on my behalf?

Yes, your broker will charge a nominal amount of fees or service charges for investing on your behalf

Are there any taxes levied while trading stocks?

Yes, there is a 0.1% tax charged while buying and selling stocks and shares, and this charge is called securities transaction tax.

Nikita Dhyani

Nikita Dhyani is a Content Writer at Ionic Digitech. A passionate content writer and has been using her content writing skills to develop various content related to financial and business-related topics. She has done BAJMC (Bachelors in media and mass communication and journalism) from Graphic Era University. Her specialties include - Content creation, Content development, Media managing, Communications skills.

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