Bombay Stock Exchange (BSE) is Asia’s oldest share market established in 1875 under the name of “The Native Stock and Share Brokers Association” as non profit organisation and permanent recognised in 1957. National Stock Exchange established in 1994 in Mumbai. Both comprise 95% of the annual business of stock markets in India. According to a survey done at domestic and international level, wealth managers to brokers. After touching a low of 7760 in dec 2008, Sensex 30 will touch 21000, 35000 and 45000 in year 2009 end, 2012 and 2014 respectively. There are number of factors which make this forecasting true like:
1) Indian savers invest only 6% of their entire savings in Equity markets and will touch 15% till 2015 according to survey. Active demat accountholders touched 1 crore in NSDL recently. This indicates that Indian are preferring equity and equity related instruments as best investment options rather than deposits in banks, post offices, etc to grab more returns. It means good percent of savings will start by 400 million active workforce and invest in share market in proportionate way. It will make them wealthier than citizens of U.S.A.
2) After recession, nations like Japan, European Union and U.S.A. are recovering gradually .1600 FII’s have invested 20 Billion US$ Indian Markets. According to SEBI, FII’s OWNED 23 % IN BSE 500 (Which comprises India’s top 500 companies in term of market capitalisation) second to promoters (29.3%) of the company and Indian Government owned only 13% and remaining others. In brief, Indian stock market is the most favourite destination of world for investments due to good economic factors which are utilised and growing every year.
3) Annual GDP of India touched 1 trillion US$ in 2009 end. It took only 5 years in double GDP from 2004 to 2009 according to Economic Survey. Indian economy will continue to grow between 6 to 9 percent till 2014 according to survey and analysis report prepared by CMIE 2009.More savings means more investment and hence Indian Economy will be known as second largest economy till 2040 only next to China.
4) Higher salaries and work curiosity among young generation working force helps them to save more and invest in share either directly by purchase from open market or buy indirectly by way of Mutual Funds, Insurance, ULIP’s etc. Today’s youth are more riskier in case of investments because they have curiosity to get more higher returns in lesser time.
These above mentioned factors will help to touch BSE SENSEX 45000 till 2014.Before investments there are n numbers of factors help us to invest in market. Stock market is volatile market and we have to study fundamental and technical analysis before investing also. There are few examples which reveal that how risky the stock market is? Sensex gained 2020 intraday points on 18 may 2009 and touched high of 14400 and lost close to 800 intraday points on 6 June 2009.Sensex was 2800 points in 2001 and touched all time high of 21206 in 2008.That means buying 1 unit of ICICI BANK share worth Rs.50 in 2001 you can sell at Rs.1400.This is what we call more risk more gain.28 times profit.
Here are some points, which will help you to invest in Indian equity markets and earn better returns beyond your expectations:-
1) Never invest the 100 percent of your investment in one day in market because due to higher volatility, market may give you either positive or negative returns. High risk may ruin your whole investments.
2) Investing in equity markets on monthly or quarterly basis just like Systematic Investment Plan in Investment sector will help you to minimise investment risk and fetch better returns in your life.
3) Have patience while investments because market is fully loaded with risk and may be your purchase of Rs. 100 a share will show you the price of 50 after one month and may be due to impatience you may sell it and after one month the same share will be at 150.Here is your patience level will be tested at acute level. Your patience will fetch you returns.
4) Always cash out your portfolio at right time. The investor who joins the market at right time and exit at right time is known as an Intelligent Investor. Study your stocks at least weekly basis and try to analysis them so you can get higher returns every time on your hard earned money.
5) Never invest that money which you may need in emergency time. For example, you are planning to buy new bike worth Rs. 50000 and have Rs. 20000 in hand and hoping that stock market magic wand will make your money Rs. 60000 in 3 or 4 months. Here is mistake from your side.
Invest that money which you don’t need for at least one year, if you are holding buyer or long term investor.
1) Indian savers invest only 6% of their entire savings in Equity markets and will touch 15% till 2015 according to survey. Active demat accountholders touched 1 crore in NSDL recently. This indicates that Indian are preferring equity and equity related instruments as best investment options rather than deposits in banks, post offices, etc to grab more returns. It means good percent of savings will start by 400 million active workforce and invest in share market in proportionate way. It will make them wealthier than citizens of U.S.A.
2) After recession, nations like Japan, European Union and U.S.A. are recovering gradually .1600 FII’s have invested 20 Billion US$ Indian Markets. According to SEBI, FII’s OWNED 23 % IN BSE 500 (Which comprises India’s top 500 companies in term of market capitalisation) second to promoters (29.3%) of the company and Indian Government owned only 13% and remaining others. In brief, Indian stock market is the most favourite destination of world for investments due to good economic factors which are utilised and growing every year.
3) Annual GDP of India touched 1 trillion US$ in 2009 end. It took only 5 years in double GDP from 2004 to 2009 according to Economic Survey. Indian economy will continue to grow between 6 to 9 percent till 2014 according to survey and analysis report prepared by CMIE 2009.More savings means more investment and hence Indian Economy will be known as second largest economy till 2040 only next to China.
4) Higher salaries and work curiosity among young generation working force helps them to save more and invest in share either directly by purchase from open market or buy indirectly by way of Mutual Funds, Insurance, ULIP’s etc. Today’s youth are more riskier in case of investments because they have curiosity to get more higher returns in lesser time.
These above mentioned factors will help to touch BSE SENSEX 45000 till 2014.Before investments there are n numbers of factors help us to invest in market. Stock market is volatile market and we have to study fundamental and technical analysis before investing also. There are few examples which reveal that how risky the stock market is? Sensex gained 2020 intraday points on 18 may 2009 and touched high of 14400 and lost close to 800 intraday points on 6 June 2009.Sensex was 2800 points in 2001 and touched all time high of 21206 in 2008.That means buying 1 unit of ICICI BANK share worth Rs.50 in 2001 you can sell at Rs.1400.This is what we call more risk more gain.28 times profit.
Here are some points, which will help you to invest in Indian equity markets and earn better returns beyond your expectations:-
1) Never invest the 100 percent of your investment in one day in market because due to higher volatility, market may give you either positive or negative returns. High risk may ruin your whole investments.
2) Investing in equity markets on monthly or quarterly basis just like Systematic Investment Plan in Investment sector will help you to minimise investment risk and fetch better returns in your life.
3) Have patience while investments because market is fully loaded with risk and may be your purchase of Rs. 100 a share will show you the price of 50 after one month and may be due to impatience you may sell it and after one month the same share will be at 150.Here is your patience level will be tested at acute level. Your patience will fetch you returns.
4) Always cash out your portfolio at right time. The investor who joins the market at right time and exit at right time is known as an Intelligent Investor. Study your stocks at least weekly basis and try to analysis them so you can get higher returns every time on your hard earned money.
5) Never invest that money which you may need in emergency time. For example, you are planning to buy new bike worth Rs. 50000 and have Rs. 20000 in hand and hoping that stock market magic wand will make your money Rs. 60000 in 3 or 4 months. Here is mistake from your side.
Invest that money which you don’t need for at least one year, if you are holding buyer or long term investor.
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