What are the stocks in the Indian stock market that someone can hold forever?

Firstly, let me clear out one thing - when someone tells you that an IT company X is going to be the future Infosys or retail company A is going to be the next HUL, simply smile and say - ‘’Sure’’

A future Infosys, never looks like an Infosys today. A future HUL never looks like a HUL today. No one knows how the company will look like 5 years down the line. Not even the promoters. If they did know, wouldn't every company have 75% promoter holding? Think about it :)

Let me add on some views which might help you to become a better trader

1..Save ,Invest and Let it Compound

Buffet is 85 years old and has been investing since he was 11 years old. Buffet made only 1% of his wealth since he started until he turned 50 years old..The last years have the biggest ratio of the total capital and when looking at the end of the investment plan, today with 85 years, he made more profits this last year than the total equity he had when he was 70! Its a exponential curve upwards when you compound. This is how compounding works. True compounding only happens when you save and invest! The saving part is the true holy grail of the equation.

2.Diversification :

Diversification is the practice of spreading your investments around so that your exposure to any one type of asset is limited. .

Investment Diversification Purpose

The purpose of investment diversification is to reduce unsystematic risk.

Unsystematic risk, also known as "specific risk”, or "residual risk," is the type ofuncertainty that comes with the company or industry you invest in. Unsystematic risk can be reduced through diversification.

You might have heard the expression

“Don’t put all your eggs in one basket”.

If you own only one asset category, or one individual stock, you will be exposing your portfolio to great harm.Unsystematic risk can be nearly eliminated through investment diversification. Unsystematic risk is specific to an individual investment or industry and is not correlated with the market. Therefore if you don’t participate in diversification you are taking unnecessary risk that you will not be compensated for.

3.Risk Reward Ratio

Most of the people concentrate only on the profit generated on every trade,but it is important to understand the concept of risk involved. Risk is the amount of money which you are going to lose if the trade goes wrong. So a good trade should have risk reward ratio of atleast 1:2

For eg.You enter nifty buy at 8600 with stoploss of 8580(risk taken 20 points).Then your profit target should be atleast 8640(reward of atleast 40 points)

What is more important is you need to know to review your investments for every 5 years.

6 Stock which Looks Good for Long term Now:

1. HCL ( IT Sector)
2. ITC ( FMCG Sector)
3. Yes Bank ( Banking )
4. Manappuram finance ( A progressive Growth story)
5. Eicher Motors ( Auto sector)
6. Sun Pharma (Pharma Sector)

What is more important is you need to know to review your investments for every 5 years.

What sites do you check everyday, as an Indian stock market investor or a trader?

What Sites Do I Check Everyday as a Trader ? :

Trading is about following a trend.

A trend can be seen either a mile away or you can miss it absolutely if you are not looking for it. A good trader should recognize the main trend without any effort and with some information and analysis, should be able to find out the stocks which are going against the general market trend.

The web sites providing the information about Indian Stock Markets are too many to actually bother about.

Most of them provide the same information.

Only the presentation varies according to their own bias about the market direction.

The above is a scene from a fruit and vegetable market.

You go around all the shops, have a look around, do your bargaining but ultimately you are going to land up with a basket similar to most of other customers at almost same price.

Because the entire market is selling the same produce.

The financial web sites and business TV Channels are also purveying the same content.

After all the same company results are available to all of them. GDP figures or RBI reports are not going to be different for any of them.

What makes them stand apart from others is their presentation of content and the authenticity of content.

I limit myself to only 2 web sites and one TV Channel.

(a) NSE Website:

The best source of trading information and past data. This is an excellent site and you can have all the data and reports you want in .csv files for any further analysis.

For Options data, I rely entirely on this site.

(b) MoneyControl:

For news, views and everything else, this is a good site. There are message boards for every stock where you can go through the current chats of traders. The message boards are fun. But do not take them seriously.

The content is generally very good with interesting articles from market experts every day.

The most useful part for me is the PRE MARKET page which gives the Global Indices along with SGX NIFTY. It indicates the likely initial trend for the day in our markets.

(c) CNBC-TV 18 :

This is the default Business Channel for me. Mainly it is due to habit and comfort with the format and faces. At times I do not like their extreme bullishness. They try to twist bad results into good by saying things like—” Okay, all the bad news is out. Things can now get better only.”

I occasionally watch other channels like ET NOW, BLOOMBERG, ZEE BUSINESS but come back to CNBC_TV 18 for my regular diet of business news.

Like I told earlier, all are selling same mangoes. It is only our comfort with the face of the vendor which makes us go to a particular shop.

Finally it is our trading which makes money, not the information provided by these sources.

Thanks for reading.

Enjoy the weekend.

What is the best multibagger stock now in India?

Multibagger Stock : Stocks that give returns that are several times their costs are called multibaggers . These are essential stocks that are undervalued and have strong fundamentals, thus presenting themselves as great investment options.

Multibagger stock companies are strong on corporate governance and have businesses that are scalable within a short span of time.

Source google:

In simple terms are stocks that have potential to perform very good over a few years of time, to yield huge profits and that can give back returns that are multiple times greater than the price of the stock at present

Investors are often inclined to buy such stocks but fall to identify them due to the lack of good research abilities. if an investor fails to identify it in a right time then he/she misses the opportunity to multiply their earnings

Stocks experts have a dedicated team of researches and financial analysts who utilise their skills and knowledge to identify a mutlibagger ,so that an investor has plenty of time to act upon.

How to Find Multibagger Stocks for Investment:

Hunting for a potential multibagger stock is a difficult task,

• Vision of the Company: The most important part of identifying multibagger stock or any profitable stocks for that matter is that one has to have a certain foresight to understand where the company or the product/service would be in next 10–15 years . Try to analyse whether the company has the potential to stay two steps ahead of its peer group and dig in to the history of the promoters .
• Sustainable Competitive Advantage: Another important point to spot a multibaggers is to identify the competitive business advantage of the company where the company is at such a unique position that it doesn’t have any close competition and at the same time ,it is delivering exceptional performance on the regular basis,such companies have a fair chance of making the cut.
• Identify Undervalued Stocks: The most important part of stock investing is figuring out how much the stock you are investing is worth, and whether the trading price is fair.
• Long Term perspective is only route for multibagger growth: This is the most important part , having a long term investment perspective increases your chances of experiencing multibagger growth . it’s simple, any company doesn’t multiply its value overnight ( in some case if it does, it doesn’t sustain) , hence ,it is important to hold your stocks for a considerably long period and give the company plenty of time to march ahead with sustainable growth.

Source google:

• While the fern plant had started , growing steadily right from the first day, bamboo had spent all this time strengthening its roots and showed no growth till 5 years, but after that, within the next 6 months,it grew to more than double size of fern. In the same way, multibaggers many not give handsome returns in the short term but in the long run, their returns my outperform even blue chips.
• Some various tools or methodologies which one can adopt in choosing stocks which have the potential to become next multi baggers
• The debt level of a company should be low, A company should be nearly debt free
• Future business potential
• Good performance history
• EPS growth
• A revenue of company should be growing quarter to quarter . A performance history of a company should be good
• The company should have good source of earning with scalability in operation
• The company business model should be sustainable and should have favourable future business potential
• Business expansion, a global market presence or new monopoly product could be added advantage
• The valuation of stock should be low
• A man agreement of the company should be strong and clean and decisive.

Source google:

Here some multi-bagger stocks :

1. Tata Motors
2. ICICI Bank
3. SBI
4. ITC
5. Britannia
6. Hindalco
7. Colgate Palmolive India,
8. Crompton Consumer
9. IOC Ltd
10. RBL Bank
11. Ultratech Cement
12. Force Motors
13. Maruthi Suzuki
14. JK cement

Note: These are best stocks as per my knowledge, before investing do research and invest!

• Don’t expect instant returns , while investing in multi baggers . Be patient and wait to the great returns
• Don’t get swayed by the buzz around penny stocks . Make sure you do proper research on stocks before investing
• There are factors the may not affect the stock fundamentally Noise and factors , that affect the stock fundamentally structural changes.
• Understand the differentiating between ‘Noise’ and ‘Structural changes’ can make all the difference between success and failure.

The reality is no one can identify a multi bagger before it is already a multibagger . So, invest in businesses that are the market leaders and continue to generate value to investors , over a period of time they will prove to be multi baggers.

Is it possible to become rich by stock trading? Do people make enough out of day trading?

As a trader at one of the largest US banks in the world, there is only one way to really become 'rich' through trading. That is spend years dedicating your life to it, and use a sucessful (and poorly remunerated) few years of track record to land a job at a prop shop or fund that pays you a commission or fat salary.

if you have $100k, the most fantastic traders would struggle to annualise much more than 10%, so you are paying yourself 10K a year. 

As a market taker, you have a disadvantage (you pay the Bid-offer spread and/or commission), meaning you are losing money if your trades break even. A much bigger issue is that traders are different. Certain skillsets or approaches work at different time. Thats why funds have loads of traders, if there was a pure skill to it all, they would big the top 3, give them a third of the pot each and rake in the money. Even the best traders at big instituiotns can lose money for sustained periods, and if it is just you, theres no other team to diversify your risk. 

Even if we ignore the technical difficulty the only way to make a decent living is to either find a job that pays you well to trade, or to be better than average and already be rich. If you have access to $1m + why bother trading? an extra million wont change your life if you have access to that much cash already, far better to go do a phD in something that can improve peoples lives, and drive your porsche at the weekends.

Trading is attractive as a get rich quick scheme because it looks simple (and everybody who posts support here seems to believe that..), but it is like chess. Easy to play around, hard to become the best. And to make money in the markets you have to be the best. 

Ask yourself this, why dont all those traders at banks and hedge funds who earn big bonuses just quit and trader at home?

Because it is nearly impossible for a single person to make a decent living trading. If all those guys who spend 12+ hours a day, make millions a year and have a tonne of cash in the bank dont think it is wise to quit and do it from their front room, why do you think you would do it with your grandma's birthday money?

What is the best stock trading app?

Best in terms of what?

Not all apps are made with the same objective in mind. Some are made for investing in stocks, derivatives & speculation purposes and others made for mutual funds etc. So it would help if you were more precise.

Useful apps with categorization:

• Tracking stock market - Moneycontrol & Investing dot com app.
• Trading stock markets - Fyers Markets (I have vested interests)
• Data analytics - Stock Edge.
• Discussion about stocks - MMB (Moneycontrol message board). Others exist too, but they’re relatively very new.
• Mutual funds - Way too many of them these days. But no special effects so to speak.

Please note, that I have a vested interest in mentioning Fyers Markets, but make no mistake, it is built well for trading stocks on the go. It’s got a lot of screeners which can help in decision making and can enhance the possibility of bettering your performance. Yes, there are a lot of brokerage apps out there, but at Fyers, we build apps based on what our customers want. It’s feedback driven development.

My suggestion: You don’t need too many apps. Just make sure you have ones which fulfill your purpose. If you’re a trader, get an app which helps you trade. If you just want to keep track of stocks, then do that with 1 app. Using too many apps can be a resource of confusion.

How do I start with stock trading?

Thank you for the A2A. I’ve been a stock trader for about ten years and have watched the careers of hundreds of aspiring traders. Here are some reflections.

Invest in your future. Aiming to make profit quickly is counter-productive. It takes most successful traders five years to get really good — and most people who spend five years never become good. Build knowledge, relationships, and experience, in equal measure, as much as you can. $800 of profit today is irrelevant; focus on the massive earning potential later on.

Read lots of books. Start with Lefevre’s Reminiscences of a Stock Operator and Jack Schwager’s Market Wizards series. Each time I re-read these books I learn even more than I did the first time. For general industry knowledge, try Series 7/55 and CFA Level I books. Happy to recommend many more. I read a book every 7–10 days, most not even about trading or finance.

Trading is 20% strategy and 80% psychology. Successful trading isn’t about brute-force complex math; it’s about good execution, and distinguishing Signal from Noise. The book Trading in the Zone is good on this, but building personal discipline and mindset takes hands-on work. You might try your hand at poker, which demands good psychology.

Keep a trading journal. Write about every trade you execute, and for that matter every trade you consider. Write your general thoughts on the market. Write about the state of your career. Grade yourself, with brutal honesty. Go back and read it periodically. The accountability and self-reflection are crucial. Also, you’ll find it a gold mine for ideas.

Don’t trust anyone who’s selling anything. If they were actually good at trading, their income would come from trading, not selling “training” and “systems.” Mojo show Wall Street Warriors provides vivid examples.Alternatively, Van Tharp, featured in Market Wizards, is the classic exception: he is an academic psychologist, so his value-add is centered around trading psychology.

Ask yourself: What’s my edge? 99% of the time, the best move is to sit on your hands. Find the cases where you really have an edge, and press them as hard as possible. This is as true in actual trade executions as it is with your time management. Think about this while building knowledge, relationships, and experience.

Which is the best virtual stock trading market learning game, app, or site?

NSE PAATHSHALA

NSE PAATHSHALA is a free virtual trading and investment interface offered by National Stock Exchange of India. To access NSE PAATHSHALA you just need to open a free account at their website, where you would have access to real-time data for all the scrips traded at NSE. The interface is very similar to Nest Interface, so you would have a real experience of trading if you are a absolute beginner. All the order placed would be executed at prices of live market. Initially you would be given 20 Lakhs to play around with, not bad right? From NSE PAATHSHALA you can invest in Stocks, F&O and CDS. We would recommend NSE PAATHSHALA to all the beginners due to its similarity with Nest Interface and accuracy of prices.

URL: https://www.nseindia.com/NP/nse_...

Moneybhai from Moneycontrol

Moneybhai from Moneycontrol offers 1 Crore virtual cash for investing in shares, commodities, mutual funds, or fixed deposits. It is a virtual Stock Trading game where you would also be rewarded based on your performance and final corpus. All the services are free with no hidden conditions. There are also tutorials in the website which would help to get upto speed on trading and investment terminologies. You can create a trading league to compete against other players. The website has a very modern interface and used by millions of traders across India. Moneycontrol is already a reputed website already reviewed in our article Top 5 Stock Market Apps for your smartphone.

URL: http://moneybhai.moneycontrol.com/

ChartMantra from Economic Times

ChartMantra is a gaming cum learning platform for Technical Analysis. In this virtual game, you can learn the basics of technical analysis and apply it on historic markets. The accuracy of your buy/sell decisions would give you a rank among other players. You would be given an initial corpus of 1 lakh rupees and the objective of the game is to make as much as money you can and go to the top of rank. You would be give historic charts based on EOD data and you have to apply the principles of technical analysis to make buy/sell decisions. All transactions involve a brokerage cost of 0.1% which makes this game more realistic. You can also specify your stop loss just like the real trading. ChartMantra is really very useful for all technical analysis enthusiasts.

Where can I learn stock trading online from scratch?

There is a simple rule “Never jump in water unless you know how to swim” The same is with share market. I have heard many people saying that Start investing in share market and you will automatically learn about it. I think this is nothing but a bull shit. How could one invest in share market if he doesn’t know the ABC of share Market.

So my first tip to students and beginners in share market is Learn about share market before you start investing. There are tons of sources from where you can gain the basic knowledge about share market but I will suggest you to read the blogs on websites related to stock market. I am sharing the links of some websites which I think are very useful for beginners.

1. http://www.finnovationz.com/
2. http://www.sharemarketschool.com/
3. https://www.investopedia.com/
4. http://www.niveshmanthan.in/
5. Stock Market Trading Courses & Classes Online | OTA

Second best source is to watch videos on YouTube. Again there are many channels but the best which I found is the Hindi YouTube channel of FinnovationZ.com. Their explanation about the stock market is in very simplest manner with animated videos.

Once you gain the required basic knowledge about share market then my second tip will be to start reading the newspaper like Economic Times, magazines like The wall street Journal etc. Also visit the website of MoneyControl and Economic Times so as to know about the movement of share market, its current position etc.

Now when you think that you have gained ample of knowledge about share market then you can start investing in share market. To start investing you must have a demat account. To open a demat account you must have a pancard, identity proof and a bank account. There are thousands of brokerage firms in India where you can open a demat account. Choose a broker who’s service is good as well as the brokerage rates are low. Once you have a demat account you are all set to start investing.

The major problem of students is that they are not earning and hence have limited money. So students should be very careful while investing. One wrong step can wipe out all your money from and you will left with an empty pockets. So to save yourself, study about the company in which you are investing, analyze it, see previous data and then invest in it.

The best advice any one could give a beginner is that Be a Discipline Investor, not a Aggressive Trader. Learn from your mistakes, Don’t follow others blindly and the most important have patience. Always remember that the market is supreme.

Keep on investing, keep on learning and one day you will be an Expert of Share market. And today’s students will be the Warren Buffett, Rakesh Jhunjhunwala and Vijay Kedia of tomorrow.

Wish you a Happy Investing and Happy learning!!

Thank You!

Which is the best way to learn about stocks?

When I first started out my career in finance, I asked myself that exact same question. After graduating from college I thought moving up to Wall Street would be the best way to learn how to invest in stocks. It makes sense right?. If I was going to learn how to make money I’d have to do if from the best and the brightest in the world. I targeted all my job hunting efforts to land a job on Wall Street and moved straight up to New York when I was offered a job to work at Lehman Brothers, one of the oldest and most prestigious investment banks on Wall Street.

Four years later I had seen and learned a lot about the inner workings of an investment bank but I still wasn’t getting any richer. Sure, give me access to a huge balance sheet and I could generate returns for you but that still didn’t help me get from point A to B. Just like many young and naive investors, I tried to get rich quick and dove into the markets with my hard earned cash all the wrong way. Looking back at the major mistakes I made when I was younger here is a list of do’s and don’ts if you want to start investing in the markets.

What you SHOULDN’T do:

1. Ask for stock tips: Once you admit that you don’t know anything about investing in stocks that’s all fine and dandy but that doesn’t mean you should cut corners. This was the major mistake I made in the early years. I didn’t know how to pick stocks so I would literally just ask my friends who I thought were smarter than me for “any good stock tips?” Sure, some of my friends would give me good ideas but the problem is when the ideas went sour whose fault was it? Considering it was just a “tip” could I actually blame them? After All the decision and how much to invest was all on me. Furthermore, it burned a few friendships along the way.
2. Try to piggyback off of broker’s research: I was working at a major global investment bank at the time and had access to their research department. Surely these guys knew what they were doing right? They were making stock recommendations to the largest institutional investors in the world. They had to know what they were talking about. Wrong. Years on the sell side as a broker made me realize that many brokers are lazy. They don’t have skin in the game. Their recommendations will usually always be “safe”. And many are just treating it as a day job to pay the bills and hopefully get a nice bonus at the end of the year.
3. Try to piggyback off other hedge funds/investors: Ok so if brokers are lazy then surely fund managers aren’t. A few years in I discovered the 13F filing which is essentially a form required by the SEC from institutional investors with assets over $100mm. All the major funds file these reports. I thought it was gold! I could emulate the trades of the world's smartest investors such as Warren Buffett, George Soros, and all the hedge fund managers. The problem with following 13F’s are that they are not required to report short positions. So if you are trying to mimic a hedge fund, you don’t know what the other side of the trade might be. You also aren’t fully aware of their investment thesis or exactly why they got into the trade, which will make it very difficult for you to monitor events or company news that might affect the position. Also, by the time the filing has come out, the fund may have long exited the trade. You never really know the exact price they entered at. (Funds must file no more than 45 days after the end of quarter date) Finally, it’s a lot of work to track all these filings in a consistent manner that will help you mimic the portfolio.
4. Get impatient and desperate: That’s what I did with my money which led me to try to score a quick win. As my stock trading portfolio suffered, so did my emotional stability. The more I lost the more I wanted to score a “quick win” in the markets to double down and make it all back. Bad move. This isn’t Vegas and you aren’t going to win the lottery.

What you SHOULD do:

1. Read (don’t be lazy): All great investors (and entrepreneurs for that matter) share an insatiable thirst for knowledge and the markets. It’s just one of those things. If you are passionate about investing you should read and learn as much about investing as possible. If you want to be a stock picker then a good place to start is in the value investing camp (I’m not saying this is the only way to make money, just a good base) by reading anything by Warren Buffett, Charlie Munger, Benjamin Graham, Joel Greenblatt, Howard Marks and of course the book Margin of Safety by Seth Klarman.
2. Invest in yourself (don’t be lazy): I’m not talking about “you need to have skin in the game” here. Everyone is usually eager to invest (throw away) their money in the markets. I’m talking about investing in learning the craft through books, conferences, courses, software, time. Anything that can help you get an edge and learn to be a better investor. If you have no problem pissing away your hard earned money on a stock tip then you should have no problem actually investing that same money into a course, investing class, or good newsletter that will help you in the future.
3. Find a mentor (but don’t be lazy): If you are lucky enough to be able to find someone to apprentice under then you will be able to springboard your learning. But finding a mentor also doesn’t mean being lazy and just trying to piggyback off them. (most great investors won’t allow that anyways, but will make sure you learn for yourself) Mentors can be actually bosses that your work for (at a fund) or “virtual” such as someone like Warren Buffett who may never know who you are but you follow religiously and emulate your investing style after.
4. Learn to think independently (don’t be lazy): This is perhaps the most important part of investing and can only come from doing your own work. Independent thinking and investment decision making is the only thing that will differentiate you from “Mr. Market” (if you don’t know what I’m talking about go read The Intelligent Investor by Benjamin Graham). People who are lazy and asking others for stock picks or trying to piggyback off of others do so often times because they are lazy and aren’t putting in the work, reading all the company's filings (10Ks and 10Qs) and building their own financial models to formulate their own views of a company.
5. Be Patient: Again, there is no such thing as getting rich quick in the markets. If that is your goal then you probably should not be investing your money to begin with. Investing is a craft that takes years to learn and hone. I know it’s hard to be patient (we all need money NOW NOW NOW) but trust me, the sooner you shelve that mentality and view investing as an art, the faster you will start seeing real success in the markets.
   As you can see, my greatest mistakes were impatience and being lazy. If you want to be an investor in the markets you are going up against the smartest, most brilliant minds in the world who have all the tools and resources as their disposal. The game has gotten extremely sophisticated. There are no such thing as quick wins or hacks if you want to be a successful life long investor. You have to put in the work, but if you do and are dedicated at learning the craft you can and will be successful.

What are the best blogs or websites for Indian stock market analysis?

Hi there!

When you get employed and start earning money then it becomes very important that you start saving your hard earned money and get it deposited in a safe place like Banks but the actual problem with Banks is that you don’t get much Interest on your savings unless you create some sort of Fixed deposit account. Moreover in FD’s the rate of Interest for most of the Indian banks lies anywhere between 7-9% which is okay but not that good especially if you have big dreams or want to make more money. Therefore people who can take little bit of risk often move towards Investment in Stock Markets or Mutual Funds which are subject to market risk but the returns are quite higher even 50-60% annual returns if you are an experienced Investor or lucky to have purchased some good stocks. Check below for Best Sites For Indian Stock Market Analysis:

1. moneycontrol.com
2. economictimes.indiatimes.com/markets
3. screener.in
4. in.investing.com
5. equitymaster.com
6. moneyworks4me.com

What is SENSEX, NIFTY, BSE, NSE, and SEBI?

The terms mentioned above are the most important and essential terms in India Stock Market and you must know them in order to learn about share market. Let us see them one by one in detail.

BSE

The Bombay Stock Exchange (BSE) is an Indian stock exchange located at Dalal Street, Mumbai. Bombay Stock Exchange was founded by Premchand Roychand. It is the oldest stock exchange in Asia and was established in 1875.

It is world’s 11th largest stock exchange with market capitalization of almost US$ 2 trillion. It claims to be the world's fastest stock exchange, with a median trade speed of 6 microseconds.

BSE has total number of more than 5700 companies listed. Sensex is the benchmark Index of BSE. On August 31, 1957, the BSE became the first stock exchange to be recognized by the Indian Government under the Securities Contracts Regulation Act. In 1980, the exchange moved to the Phiroze Jeejeebhjoy Towers at Dalal Street, Mumbai.

Sensex

The term Sensex has been derived from two words that is Sensitive and Index. More than 5000 companies are listed on BSE out of which only 30 selected companies represent Sensex. Sensex is nothing but the calculated weighted average of the performance of 30 companies from various sectors which are listed on BSE. The Sensex is actually calculated every 15 seconds and the value of the index is made available in real time. It represents almost all the sectors well through representative companies.

NSE

NSE or National Stock Exchange was incorporated in 1992 and is located in Mumbai. NSE was the first exchange in the country to provide a modern, fully automated screen-based electronic trading system. Nifty or Nifty 50 is benchmark index of NSE. More than 1600 companies are listed on NSE. NSE is 12th largest stock exchange in the world with the total market capitalization of approx. US$ 1.41 trillion.

Nifty

Nifty is Index that is introduced by NSE and has been derived by merging the two words ‘National’ and ‘fifty’.

Nifty is also known as Nifty Fifty. More than 1600 companies are listed on NSE out of which only 50 selected companies represent Nifty. Nifty or Nifty 50 is nothing but the calculated weighted average of the performance of 50 companies from various sectors which are listed on NSE.

SEBI

The SEBI or Securities and Exchange Board of India is the regulator for the securities market in India. It was established in the year 1988 and given statutory powers on 30 January 1992 through the SEBI act 1992. SEBI plays a vital role in maintaining stable and efficient financial and investment markets by creating and enforcing effective regulation in India's financial marketplace. SEBI's management is composed of its own members. The management team of SEBI consists of a chairman nominated by the Union Government of India, two members who are officers from the Union Finance Ministry, one member from the Reserve Bank of India and five other members who are also nominated by the Union Government of India.

Why do share prices of the same company differ in BSE and NSE?

Hi, let me explain in a simple way. You have gone to the market to buy one kilo tomato and you would have found that the price of tomato differs from one shop to the other; while one shop guy is selling at Rs.10 per kilo and the other shop guy is selling at Rs.11 and the other could be selling at Rs.9. You would obviously make your choice from whose shop to buy and that is the beauty of a market. BSE & NSE are two alternate markets which was created for the benefit of traders/investors. That arbitrage is essential and very much required for either of the exchanges to not have any monopoly on the prices. If there would be another stock exchange in the future (if MCX SX becomes more active) there too the prices of stocks would vary compared to BSE & NSE. Ultimately it is all about choices available in the market place. We can see similar disparity of prices in gold, silver and so on where the price per gram may vary from jeweler to jeweler and from state to state and country to country. Remember sir, there is no such thing as “efficient market”.

How is the NSE/BSE Stock open Price determined?

A couple of factors determine the opening price of a stock:

1. Demand and supply for a stock (major factor)

2. Previous day’s closing price (used as reference point in some cases)

Before we move into how the opening price is computed, let’s understand the timeline of the pre-open session.

Pre-open session

Pre-open session is a 15-minute long session (9:00 AM to 9:15 AM), which helps in the discovery of opening prices of stocks.

It has three parts:

Opening price

The pre-open session begins with intake of orders from market participants. Then, the matching of buy and sell orders is carried out by the stock exchange in order to arrive at the opening price. The opening price, also known as equilibrium price, is computed such that a maximum number of shares get traded based on the buy and sell orders received. This method is known as call auction.

I will try to explain the method using an example to make it easy for everyone to understand.

So let’s use State Bank of India as an example. Let’s say that SBI closed at 274 in the previous session. In today’s session, the exchange has received multiple orders for the stock and we will consider the below as the order book for SBI at 9:08 AM, which marks the end of the pre-open session.

Going by the above order book, we have a single price at which both buy and sell orders can be matched. The equilibrium price for SBI is 275, since this is the price at which maximum number of shares can be matched. Hence, the opening price of SBI will be 275.

The above example is a simple scenario. In reality, we may have situations where there is:

1. More than one price point with same matched quantity: The opening price will be the price at which the imbalance quantity is the minimum.

2. More than one price point with same matched quantity and same imbalance quantity: The opening price will be the price which is nearer to the previous day’s closing price.

3. No price discovery in pre-open session: In cases when there is no price discovery in the pre-open session, the price for the first trade in the normal market shall serve as the opening price. This could happen at times when there are no limit orders for a stock and hence opening price would not get discovered.

I hope you found the answer useful.

Who are the most successful investors in Indian stock market?

All those who enter the stock market in India has same dreams. They all want to become absurdly wealthy like few of the known richest investors in the world.

However, I strongly believe that if you want to learn something new; then it’s best to learn from one who has already done it.

If you want to become successful in the stock market, then you should learn from the lives of these iconic stock market investor. How was their journey, what principles they follow, how long they have been investing? etc. So, today I decided to write a post about the ones who are insanely successful in Indian stock market.

How many of them do you know?

Everyone who enters the stock market world knows about Warren Buffet. The greatest investor of all time and one of the richest person in this world who made his fortune by investing in stocks. You might also have heard about Benjamin Graham, Charlie Munger, Peter Lynch etc

But do you know about the preposterously successful investors who made tons of money by investing in Indian stock market?

Yes, I can hear the name in your mind. Rakesh Jhunjhunwala. The name which comes instantly on the mouth of every Indian when we hear the term ‘Rich-Indian-stock-market-investor’. But how much do you know about him? And what about the other successful stock market investors in India?

In this post, I am going to tell you about 3 insanely wealthy stock market investors in India. Further, I will recommend you to read this post till the end as I have kept a surprise bonus there. So, be with me for the next 8-10 minutes to learn all about the most successful stock market investors in India.

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3 Insanely Successful Stock Market Investors in India

Rakesh Jhunjhunwala

Net worth: 2.4 Billion USD
Born: 5 July 1960 (Age 57), Mumbai India
Education: Chartered Accountant
College: The University of Mumbai, The Institute of Chartered Accountants of India (ICAI)
Occupation: Owner of rare enterprises, investor, Film Producer & trader

Rakesh Jhunjhunwala, also known as, “India’s Warren Buffet” and “The Big Bull’, is one of the most renowned and successful stock market investors in India.

The son of an income tax officer, Rakesh joined the stock market after completing his degree as a chartered accountant. Starting with the initial investment of only Rs 5,000, currently, he is sitting on a huge net worth of around Rs 15,000 crores.

Jhunjhunwala today manages the privately owned asset management firm “RARE Enterprises”. The name RARE is derived from the initials of his name and his wife’s name. That is- ‘Ra’ from his name (Rakesh) and ‘Re’ from his wife’s name (Rekha). He is also the chairman of Aptech Limited and Hungama Digital Media Entertainment Pvt. Ltd.

From the very start, Rakesh Junjhunwala’s ‘risk and reward’ taking ability along with impressive imagination & wisdom earned him great profits.

His first ever large income was from selling 5000 shares of Tata Tea which he had previously bought for Rs. 43 per share and selling them at Rs. 143. His later career was marked by his buying of six crore shares of Titan in 2003 at an average price of around Rs 3. The stock is still in his portfolio and currently trading at Rs 835.

Rakesh Jhunjhunwala follows the ideology of Warren buffet and believes in long-term investment. He strongly advocates the growth of India and it’s rising economy. Mr. Jhunjhunwala is also confident in learning from mistakes. He often says- ‘Mistakes are your learning friends. The idea is to keep these mistakes small.’

According to forbes 2016, Rakesh jhunjhunwala is India’s 53rd richest person.

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Radhakishan Damani

Net worth: 7.1 Billion USD
Age: 61
Occupation: Investor, Stockbroker, Trader and the Founder & Promoter of Dmart

Radkhakishan Damani, also known as ‘Mr white and white’, because of his simple dressing- white shirt and white trousers, is an investor and owner of D-mart. He is also the mentor of billionaire investor Rakesh Jhunjhunwala. RK Damani is known for his low profile and he rarely makes an appearance in public events or press conferences.

On 21st March 2017 i.e. the listing day of Avenue supermart1 (parent company of D-mart), the stock price rose more than double, from the offer price of Rs 299 and ended up 116% upwards to Rs 648. In the IPO of Avenue Supermart, RK Damani made around Rs 6100 crores in just two days.

RK Damani owns 52% stake in Avenue Supermarts, and Bright Star Investments – his investment company, holds another 16% stake.

RK’s journey in Indian stock market is truly inspiring. He was not always involved in stock market. He started his career as a trader in ball bearing, with no intentions to enter the stock market. However, his future has something else reserved for him.

“RK Damani entered the market at an age of 32.”

At an age of 32, post his father’s death, RK was forced to close down his ball bearing business and had to join his brother in the stockbroking business, which was inherited from their father.

RK Damani had no idea of what to do in the stock market then. His knowledge of the stock market was very limited and can be considered next to zero when he entered. He made few mistakes initially by speculating the stock prices. However, he soon understood that the market is a heaven for those who want to make a great fortune in life.

As he was involved in stock broking, he also understood that he can’t make lots of money just by watching other people invest. Finally, he started investing for the long term. Gradually, his judgment began getting right, and within the next couple of years, he was standing as one of the most successful investors in the market.

RK Damani’s strategy is quite simple- Invest for the long term, like 5 to 10 years. RK always sees the future prospects of the company before investing and invests only if the product has a potential far ahead in the future.

Ramesh Damani

Net worth: 800 Crores (1.24 Billion USD)
Age – 61
Education: HR College, Mumbai (Bachelor’s degree in Commerce)
California State University (Master’s Degree in Business Administration)
Occupation – Founder of Ramesh s Damani Finance Pvt Ltd

Ramesh Damani, the investment guru and one of the most successful stock market investors in India, started his journey to riches in 1990’s when Sensex was 600 points. He holds a bachelor’s degree in commerce from HR College, Mumbai and a master’s degree in Business Administration from California State University.

Ramesh Damani works at privately owned Ramesh s Damani Finance Pvt Ltd.

The son of a successful stock investor, Ramesh Damani became a member of the Bombay Stock Exchange(BSE) in 1989. Initially, Ramesh planned his career as a stockbroker. However, later he started enjoying picking winning stocks and switched to become a long-term investor.

Ramesh Damani’s first famous investment was ‘Infosys’. Coming from a techie background in the US, he knew that Infosys has great future potentials. So, when Infosys became public in 1993, he invested Rs 10 lakhs in it. By 1999, this investment has given him more than 100 times return.

“I learned that just because a stock doubles, it is not a reason to sell it.”- Ramesh Damani

The investment philosophy of Ramesh Damani is easy and simple to understand. He is a long-term investor and suggests not to invest for short-term gain. Further, he advises everyone to make an exit strategy clear before making an investment in any stock. He further adds that the economy of a market is hard to predict; however if you have researched the stock carefully, and had made a good strategy, then you can easily make fortunes in the stock market.

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Bonus:

Raamdeo Agrawal

Networth – 1000 Cr
Age -60
Occupation: Co-Founder- Motilal Oswal Financial Services Ltd

Raamdeo Aggrawal, the co-founder of Motilal Oswal Group, is another most respectable stock market investor in India.

He is famous for investing in the legendary stock of HERO HONDA in 1995 when HERO was a small cap with a market capitalization of only 1000 crores. Raamdeo Aggrawal invested around Rs 10 lakh in the shares of the two-wheeler manufacturer at Rs 30 apiece, and held on to them for the next 20 years, till the share price rose to Rs 2,600 apiece. Today the market cap of HERO is above 73,000 crores.

During the last 30 year career, Raamdeo Aggrawal investing strategy is based on QGLB: Quality, growth, longevity and bargain value of a company.

Like most great investors, Raamdeo Aggarwal too follows the principles of long-term investment. Among his favorite books to read are- ‘One Up on Wall Street‘ by Peter Lynch and ‘The Intelligent Investor‘ by Benjamin Graham. Further, he is also excited by Michael Porter’s ideas on the competitive structure.

“After 30 years, I understood economic moat is the mantra of investing” -Raamdeo Agrawal

Raamdeo Agrawal suggests the investors not to be driven solely by market trends and advice to research the stock intelligently before investing.

Here is the bonus section. List of few other best stock market investors whom you should know. Further, I have added a link to each of the investors so that you can read further.

Porinju Veliyath, 55
Investor, Founder- Equity Intelligence India Pvt Ltd

Nemish Shah, 62
Co-founder of ENAM

Chandresh Nigam, 48
Managing Director-CEO, Axis Mutual Fund

Chaitanya Dalmia, 42
CIO, Renaissance Group

Chandrakant Sampat, 89
Individual investor

Parag Parikh, 63
Chairman & CEO, PPFAS

Dolly Khanna,
Investor, Homemaker

Sanjay Bakshi, 51
Managing Partner, ValueQuest Capital LLP

Samir Arora, 55
Founder, Helios Capital

Saurabh Mukherjea, 41
CEO (Institutional Equities), Ambit Capital

Anoop Bhaskar, 50
Head – Equity, UTI Mutual Fund

R Srinivasan, 48
Head (EquitIES), SBI Mutual Fund

That’s all. I hope this post- “3 Insanely Successful Stock Market Investors in India that you need to Know” is helpful to the readers. Please share the post if you liked it. Happy Investing.