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

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.

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

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.

Today’s Indian Stock Market – Both NSE and BSE:

In Asia, the Indian stock market is one of the most popular stock markets and has been around for a long time. This is not a stock exchange. Stock index and stock index actions are placed on the same platform. Making money is never very easy. There is always some work involved. Sometimes it is difficult which company’s shares you can profit from.

There are two main Stock exchanges in India. These are known as The National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

A.NSE – National Stock Exchange: Traded as NIFTY Index.

The National Stock Exchange I located in Mumbai. It is the most popular stock exchange in India when it comes to equity trading and derivative trading.  There are many other exchanges in India, but the two most popular are the NSE and the BSE. Most of the stock transactions happen between these two.

The owners of the NSE are banks, and some larger financial institutions, NYSE, and Goldman Sachs. In 2007, the equity market capitalization was at a high and was named the 2nd biggest exchange in South Asia, but NSE is the 3rd biggest on the globe when it comes to trading. It has a very fast growth rate and is only getting better.

B.BSE – Bombay Stock Exchange: Traded as SENSEX.

The Bombay Stock Exchange has the most companies listed in their stock exchange on the globe. They are the biggest stock exchange in South Asia and the 12th in the world. The Bombay Stock exchange has a substantial amount of trading like the National Stock Exchange.

NriFinanceGuide.com is a website that helps Indian investors to stay equip with the current stock news, very educative articles, and a guide to help gain and keep all the knowledge one needs to be a successful investor.

At our website, we offer the right news and reviews to help you decide while you are investing in the Indian stock market. The returns in the Indian stock market are better and a lot of markets around the world. Once you have decided on a stock that you can profit from, it is very important to learn how to time it right so that you can get the most out of your profit.

Learn when it is the right time to buy and to sell so that you do not end up losing any money. Tips from others are useful, but are not to be relied on. Make sure that you do your own research and pay attention to news. The markets have been falling all over the world and are now expected to grow greatly in the next three years. Now is the time to get involved if you’re not already.

How NRIs & PIOs can invest in Mutual Funds & Stocks of India?

How can Non Resident Indians & People of India origin make investments in the Indian Stock Markets?

There are a variety of investors in stock markets throughout the globe, but all of them call be divided into two basic groups. These groups are known as the Individual investors and the Institutional investors. An Individual investor is an investor who is investing with their own money. An Institutional investor is an investor such as a big company who invests others money, such as a client or a share-holder. Indian markets are open to NRIs living abroad for buying & selling shares. Though shorting is not allowed in the Indian share market but they can buy and sell stocks.

Now, there are two basic types of investing. These are called foreign and domestic. Only an Institutional investor can be separated into these two groups. These groups are not for individual investors. The groups for Individual investors are Resident or Non-Resident.

There are also 4 different market participant types for stock markets over the globe. Some countries have free markets with very little rules, but most countries have some rules.

Here is some information on the four types in India:

Resident Indian: You can invest or trade in India without very many rules or restrictions. You have full access to India stocks. You would still have to abide by SEBI and NSE – National Stock Exchange / BSE’s – Bombay Stock Exchange rules and regulations though.

Domestic Institutions: You can also freely invest in India Stocks. Domestic Institutions is also including the mutual funds and financial institutions.

Nonresident Indians: You have very special provisions, but can invest or trade freely in the India stocks and stock exchanges.These can be categorized from PIO – person of Indian origin and OCI – Overseas citizen of India.

Foreign Individual Investors (also Nonresident): If you are a citizen of any other country besides India, Nepal, Bhutan, and Pakistan, then you cannot invest in India Stocks. Although you cannot invest directly, there are indirect ways of investing in India. The most popular two ways are American Depository Receits and Mutual funds by foreign markets with Indian Companies.

Foreign Institutional Investors: You can invest or trade freely in almost any Indian stock. Rules and regulations are held by Banks of India and other companies as well.

Opportunities for Nonresident Indians investing in India

There are two phrases that are used often when talking about this. These two phrases are Repatriation Basis and Non-repatriation basis. Investing on a Repatriation Basis means that your proceeds can be accessed in the country where you are living. If you are living in the USA and investing in India, then you can take the proceeds (Rupees) and convert it into U.S. dollars. You can do all of this without any problems. Investing on a Non-repatriation basis, you are not able to convert your proceeds (Rupees) into a foreign currency; however, most cases are on a repatriation basis.

Steps for investing in Indian stocks for NRI, PIO & OCI…

1.      You need to get a PAN card. You can get one from the Income Tax Department of India. It is a requirement for everyone to have a PAN to invest or trade Indian stocks, even NRIs. You can download the application for a PAN card at pancardnri.com. It’s free!

2.      Next, you need to open at least two different bank accounts that have been approved by the Reserve Bank of India and marked “DESIGNATED”. A few good banks would be ICICI bank, Citibank, and SBI. Whatever bank you decide to choose, make sure they have a branch in you local town and state that you are living in. Also, and most importantly, make curtain that the bank you choose is affordable.

3.      Now, you need to open a Demat Account. The demat account will maintain all of your stock balances and transactions. In order to open one, you will have to do it though a DP. If you check with your bank, the chances are, are a DP too. When you choose a DP, make sure that they are very informed about NRIs and demat accounts and that they are affordable.

4.      Lastly, you will need to open an account with a stock broker. You will need a stock broker to take care of your buy & sell orders. Open an account with a broker who is a member of a stock exchange in India. The two recommended stock exchanges are NSE and BSE. When you are choosing a broker, make sure that they are registered with SEBI. Also, make sure that they are on good terms with your bank in which you opened your accounts. And last, check to see that they are dedicated and again affordable.

Some good online brokers that assist NRIs to invest in Indian mutual funds & allow them trade online in Indian sharesare:

NriInvestIndia.com
Geojit.com
IciciDirect.com
AppuOnline.com