NRI Finance & Investment Guide

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Indian Stock Market – A Strong Emerging Market in Asia.!

Posted by ni2financial on July 2, 2009

The Indian stock market has always been a wonderful avenue for all those investors who wish to reap exponential growth and returns on their stock portfolio. India has recently been a solid emerging market, and the future of India definitely looks strong. With this view, we thought of brining you an article that depicts about what India’ stock market is all about. So all those beginners who wish to invest money in India, may treat this article as a tutorial about Indian stock market, to hone their investment knowledge.

To begin: The Indian stock market has many stock exchanges, but prominently the 2 big ones are:
1. National Stock Exchange – Also known as NSE.
2. Bombay Stock Exchange – Also known as BSE, located at the Dalal Street in Mumbai.

The Bombay stock exchange (BSE):

This stock exchange is located in Bombay, India. It is the largest and the oldest Indian stock exchange. Seventy percent of India’s trading is done at this exchange. SENSEX is the index that was made for the Bombay stock exchange. Its job is to reflect when the stocks go up and down for India and abroad. SENSEX is now very important to the Indian market. SENSEX and The Bombay stock exchange are the reasons for the Indian market growing so rapidly.


The National stock exchange (NSE):

This stock exchange is located in Delhi, India (the nation’s capital). It is the oldest market dealing with bonds. They deal with many different types of bonds, but mainly bonds and governmental bonds. Like SENSEX was the index made for the BSE, Nifty is the index that was made for the National stock exchange. Nifty takes care of around fifty percent of all the bond trades that happen at the NSE. The NSE is trying hard to make equal opportunities for the people not in India to trade. The NSE differs from the other stock exchanges in India because it pays taxes.

What is Sensex and Nifty indexes?

Because SENSEX is the index for the BSE, if the SEXSEX gets higher, that means that the shares of the companies in BSE have gotten higher. It is the same concept if the Sensex gets lower, which means that the shares of the companies in BSE have gotten lower. Nifty does the same thing for the National stock exchange.

There are many different stock exchanges in India, but these two are the most popular ones. Within these two stock exchanges, the majority of the trading is done. This means that the most trading is done within SENSEX and Nifty, making them the most popular indexes in India.

Investing in India made easy for NRIs & Foreign nationals/citizens.

You can invest in many different assets including: Stocks, Bonds, Equity, Currency, Commodities, Real Estate, etc. Gold is so much more pricy than we are used to. Investing in equity is becoming the best idea for investment. You would need to have a zero percent interest rate.


Why Indians living abroad should invest in India: The Benefits & Advantages:

There are many reasons why you should invest in India; here is a list of the major ones mentioning how India is NOT affected by this recession.

· India is doing surprisingly better than anyone else during this recession. This is because they have a lot of savings unlike the United States and United Kingdom.

· India’s population of young adults is outstanding. While other countries are ageing, India will have the majority of young people. This means that a very large percent of India will speak English, the world wide language.

· India has high GDP and low imports and exports, which is another reason why the recession is not hitting them hard.

· The recession has caused car companies all over the United States to shut down and file for bankruptcy, yet the car companies in India are doing really good. This means that people in India have the money to purchase cars during the recession.

The future of the Indian stock market:

Any true trader/investor will tell you that the higher the risk, the higher the reward. The Indian stock market future is very risky as well as any other market. Obviously, there will be times when the market is up and when the market is down. The Indian market is growing faster than many other markets across the world. This portrays an image of a very bright future for the Indian stock market.


Tips to Investing in the Stock Markets of India:

Here is the biggest tip for you if you would like to start investing in India.

  • Never let your emotions get to you when you are investing. You need to keep your focus and always pay attention to your losses. Keep them small. Never lose control. You always need to have complete control over when you buy and sell as share. Try your best to never let the losses get to you, try to shrug them off. The main key is to keep your losses small and your winnings big.
  • When you invest your money, only invest the amount you can afford to lose. If you decide to invest a bigger amount than you can afford, you emotions will kick in and it is very hard to concentrate and come out with profit at that point. Try your hardest possible to keep your emotions away for trading/investing.

If you are interested, there are websites that can provide you with more tips, education, Indians stock quotes, free financial news, help you with opening demat accounts, trading for NRIs, investment advising that can be very helpful to you, such as: www.NriInvestIndia.com.

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What is Long Term Investing, and Why Long term Investment is Good?

Posted by ni2financial on May 28, 2009

You go through live hearing that it is a good idea to invest that you need to buy stocks. You always hear that you will benefit from the markets if you put your effort into them, but you rarely hear why this is a good idea. This is a strategy to get people to invest without much investigation. You need to investigate everything that you are putting your money into. Before you give into these advertisements and media saying that you need to invest, you need to research and develop a strategy that can help you benefit from them markets.

Some of the strategies that you read about claim to be the best, they claim that they can’t lose. If this was true, you would think that a lot more people would know about and use this strategy themselves. Don’t get stuck in just one strategy, learn about them all. This will eventually help you develop your own that is perfect for you.

A tip on investing is from the records of mutual fund investors, the investors that help their positions longer than three years had a better outcome than those who held their positions for less time. The long-term investors did better that the short-term investors. Also, keep in mind that short-term investment comes with a greater risk than long-term.

Ultimately, your profits will all depend on the company that you are investing in. Make sure you pick the right company and the right amount of shares before you worry about when to sell them. Do research on the company and how they have performed in the past, what do their charts look like? If something looks good, don’t make a mistake and sell all of your other stocks to purchase this one because you think it will do well. You should first do enough research that you are certain it will work. Make sure that you do not decide on a good stock because others made so much money on it before. Usually, if a stock has already made so much money for others then it is going to change directions soon. Be careful because way too many investors make this mistake and end up losing their money. Even if you are lucky enough to get the end of the profit making off of this stock, usually the mistake is made of holding the stock too long and you will end up losing money in the end. It is better to leave these stocks alone.

Everyone, including long-term investors have down times when it comes to investing. Long-term investing seems like a better idea that any other type of investing, but make sure that it is right for you. It needs to fit your lifestyle as well. It would not be logical to think that a certain type of investing will always bring you a good outcome. It is important to keep this in mind as well as to realize that a strategy can be a good one and good for you and still not constantly bring your profits. Any kind of global news, national news or company news can affect the market. The market fluctuates all the time. If you are a short-term investor, these fluctuations due to news can have a big impact on your outcome. If you are a long-term investor, these events will most likely subside before it is time for you to sell.

When you are short-term investing, it is very hard to predict what the outcome will be because you the market fluctuates so much in a short time. A long-term investor can just ignore any fluctuations from short-term events. To understand long-term investing better, look at any company’s long-term chart. Usually, the chart either moves up gradually or down. There are not many peaks and fluctuations.

In investment, anything can happen and you won’t always come out on top, but try and chose a strategy that will increase your chances.  To help you, you can set a goal for yourself and base your strategy on reaching that goal. Always be logical and do research before investing anything. Never make a decision on impulse.

A lot of investors are very successful with short-term, but before you decide which way you want to invest, think about what would be right for you and your lifestyle. The stock market can bring you great wealth if you play it right, but if not, you can end up losing everything as well. All in all, long-term investing has a lot less risk involved and causes less stress while still bringing in profits.

Best option for Investors is to invest into emerging markets like china, India and brazil. If one wishes to make investment in the Indian Stock Market, then a very good Indian stock broker is: www.NriInvestIndia.com

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Future of India – Will the Indian Stock Market still Boom?

Posted by ni2financial on May 15, 2009

India just keeps getting better and better. The economy is growing rapidly surpassing some of Asia’s biggest economies. India is now becoming the third largest country in Asia economically. It has grown so much and is expected to continue to grow like this for a long time.  The Indian Government is doing everything it can do to propel the growth rates in the Indian Industry, primarily in: India Stock Market, Indian Companies, India’s manufacturing index, India Business Sector, India’s Company sector and other India investment industries.

The yearly salaries are rising and the command to buy is under the command to spend. The Investment GDP ratio is at a high. It is now over 30 percent and between the years 1990 and 2004 the average was only 25 percent. It has been said that, once it reaches 30 percent, it is going to take off rapidly. So India is expected to move rapidly.

The down side to India’s big movement is that there is a limit to how high it can go. India has grown so much, making the costs of everything go up so frequently. It can turn into the most expensive country in the world. The companies are now working above their finest ability.

A lot of professionals say that this is a problem, but that people over-exaggerate while talking about it. Their main worry about India is that the roads are so bad in India and the amount of terrible roads may increase, but the government is addressing this issue. The prices of cement, used to make good roads, have also gone up a lot with the prices of everything else. There are so many road related projects that need to be done soon.

A lot of people try to People undervalue India’s accomplishment in growth. The growth rates are very good and it wouldn’t be wrong for people to overvalue it. India has created the best growth story that happen over a long time. Although India is growing, there can still be corrections in the market. No matter how well a country is doing, there is always something that can be fixed. Some say that they would like to wait until the market is fixed to invest.

Don’t let short-term concerns put you off from Investing in India:

When things happen in the news, it affects the market. Sometimes it is good for the market and sometimes it is bad. Just remember that the things that happen in the news, are not permanent and the market will increase or decrease with the next thing. The India market is not that strong because the rupee is getting smaller and the effect oil has. Also, recently, the uncertainty of what will happen between India and Pakistan and all of the bombings have affected the market and made others not want to invest.

When thinking about all of the bad things in the news that can affect the market in a negative way, think about the things that affect it in a positive way as well. The growth rates are substantial and that yearly exports are bringing in a lot of money. The export market has increased because other countries are in demand. India is not relying on just a few countries anymore. It is now dealing with the countries that are said to have the fastest growth rate within the next few years. You need to look at a market in the long-term. When seeing it in the short-term every market will look bad due to recent news. An investor needs to look past that. It is never guaranteed that you will make a lot of money when investing in any market, including an emerging one. However, India is said to be number one in the world right now for investment opportunities.

Indian Bull Story is not over in the India’s Share Market.

India stocks are not happy with the celebration of India’s independence. All of the commotion brought the market down six percent. But this is just another story that will be fixed in the long-term. India has a demographic outline greater than China’s outline and they don’t have to rely on global trade. Consumption is increasing a lot and the middle class is growing as well. In India, every month about six million people get a mobile phone. This is more than China. Corporate companies and firms have a very high return as well in India.

It is said that the Reserve Bank of India come up with a way that the domestic credit cycle can last for an extensive time. This credit cycle and the investment cycle, of course, will keep India in the bull market for a long time. They stopped/slowed the growth of the bank credit. The bank is taking control of the credit and loans very well so that India stays on the right track.

Remember, that even with India doing so well, there are always going to be flaws in the market, just like every market. Many things can happen in which India can lose the things it relies on. Any news related event that happens in any country will affect that countries market and sometimes other countries as well. India, having a very rapid growing economy is also a very expensive country in Asia. Many have high hopes for India and if investors invest in India, they would be buying into a country that has an excellent opportunity to make money over long-term.

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