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सोने के भाव एमसीएक्स और कॉमेक्स में लगातार चार सप्ताह से बढ़त बनाए हुए है। सोने के विपरीत चलने वाला डॉलर इंडेक्स पिछले चार सप्ताह से सीमित दायरे में बना हुआ है और ऊपरी स्तरों पर इसमें दबाव भी रहा है जिसके चलते सोने के भाव को अच्छा सपोर्ट मिला है।
अमेरिका की लम्बी अवधि की बांड उपज में लगातार तीसरे सप्ताह गिरावट दर्ज की गई है और 10 साल की बांड उपज 1.54 प्रतिशत से घटकर 1.33 प्रतिशत तक के स्तरों पर है। निवेश के लिहाज से सोने के विकल्प के रूप में देखे जाने वाले बिटकॉइन में बिकवाली का दबाव बना हुआ है और यह पिछले सप्ताह 6 प्रतिशत टूट गया है जिससे निवेशकों का रुझान सोने की तरफ बना हुआ है।
अमेरिकी फेड प्रमुख जेरोम पावेल ने अपने बयान में मुद्रास्फीति को अस्थाई बताया है और सेंट्रल बैंक द्वारा अमेरिकी अर्थव्यवस्था को सपोर्ट करते रहने को कहा। हालांकि, निवेशकों को व्यापक रूप से उम्मीद है कि फेड 2022 के अंत तक संपत्ति की कमी शुरू कर देगा और 2022 की शुरुआत में ब्याज दर में वृद्धि की भी संभावना है।
लेकिन यह भी स्वीकार करना होगा कि कोविड डेल्टा संस्करण का डर एक बड़ा आर्थिक जोखिम बना हुआ है जिससे सोने के भाव को सपोर्ट है। सोने के प्रमुख उपभोक्ता चीन से दूसरी तिमाही के सकल घरेलू उत्पाद (जीडीपी) के आंकड़े अनुमान से कम दर्ज किये गए है। कच्चे माल की उच्च लागत और नए कोविड -19 के बढ़ते मामले जीडीपी में धीमी वृद्धि के कारण रहे है।
घरेलु वायदा सोना 0.7 प्रतिशत सप्ताह में तेज़ रहा और कीमते 48250 रुपये प्रति दस ग्राम के करीब रही। चांदी के भाव में भी सुधार रहा लेकिन यह सप्ताह में सपाट रह कर 69300 रुपये प्रति किलो पर रहे।
इस सप्ताह सोने और चांदी में हल्के सुधार के बाद तेज़ी रहने के आसार नज़र आ रहे है। सोने में 48600 रुपये पर प्रतिरोध और 47500 रुपये पर सपोर्ट है। चांदी में 71000 रुपये पर प्रतिरोध और 68400 रुपये पर सपोर्ट है।
अमेरिकी फेड की नई मुद्रा नीति पर बैठक के बाद सोने के भाव में फिर बढ़त देखि गई। एक मजबूत होता डॉलर और घटती यू.एस. ट्रेजरी उपज सोने के लिए लाभ को सीमित भी कर रही है। डॉलर, जो आमतौर पर सोने के विपरीत चलता है, तीन महीने में अपने उच्चतम स्तर पर पहुंच गया है। लेकिन अमेरिकी बांड उपज में गिरावट सोने के भाव को सपोर्ट कर रही है।
फेड की जून की बैठक के मिनटों ने संकेत दिया कि केंद्रीय बैंक 2021 के अंत तक अपनी संपत्ति खरीद को कम करने की दिशा में कदम उठा रहा है। हालांकि फेड अधिकारियों ने अमेरिकी आर्थिक सुधार पर आगे की प्रगति को जारी रहना जरुरी बताया और वे सहमत हुए की उम्मीद से ज्यादा जल्दी संपत्ति को घटाने की आवश्यकता है।
जबकि यूरोपियन सेंट्रल बैंक द्वारा फेड के विपरीत नजरिया रखा गया है। अटलांटा फेड के अध्यक्ष राफेल बॉस्टिक ने चेतावनी दी कि अधिक घातक डेल्टा प्लस संस्करण कोवीड-19 मामलों में एक नया उछाल लेकर आ सकता है और उपभोक्ताओं को बाज़ारो से दूर कर सकता है जो अमेरिकी सुधार को धीमा करने का कारण बन सकता है।
उधर, चीन की सरकारी बॉन्ड यील्ड में तेजी से गिरावट आई, क्योकि अधिकारी अर्थव्यवस्था का समर्थन करने के लिए बैंकों के रिज़र्व रेश्यो में समय पर कटौती का उपयोग करेंगे। पिछले सप्ताह चीन की तरफ से रिज़र्व रेश्यो रेट 0.5 प्रतिशत घटाया गया है। कॉमेक्स में सोना 1 प्रतिशत सप्ताह में तेज़ होकर 1800 डॉलर प्रति औंस और घरेलु वायदा सोना भी करीब 1 प्रतिशत तेज़ होकर 47700 रुपये प्रति दस ग्राम पर रहा है।
सोने और चांदी में इस सप्ताह तेज़ी बनी रहने की सम्भावना है। सोने में 48400 रुपये पर प्रतिरोध है और 47400 रुपये पर सपोर्ट है। चांदी में 71000 रुपये पर प्रतिरोध और 66000 रुपये पर सपोर्ट है।
Many people think that doing investment is a challenging job as it requires a lot of hard work, patience and a little bit of research. This can be true to some extent but not fully. Investments can give you outstanding results if done properly.
Make sure that all the investment that you have made or will make should be under control with your investment profile that includes income, expenditure risk profile and financial goals.
You can select an investment option that depends on your affordability such as lump sum amount or SIP.
The investment mode can make a difference in one’s portfolio. To learn more, let’s understand the difference between the duo.
SIP and lump sum investment allow investors to benefit from huge wealth creation. However, the primary difference between lump sum and SIP is the frequency of investment.
SIP refers to the Systematic Investment Plan that allows you to invest a fixed amount periodically.
Many schemes declared the minimum SIP amount is ₹500. Investors are required to submit the NACH mandate at the starting of SIP that enables the fund houses to debit the SIP amount from the bank account of the investors on a fixed date every month.
With a lump sum option, investors are required to invest a lump sum amount in a mutual fund scheme depending completely on their choice.
You are free to select any amount and then withdraw the same anytime if you have invested in an open-ended scheme. However, ELSS has a lock-in period.
A regular income person always prefers SIP over Lumpsum in SIP. But why is SIP better? This eliminates the burden to invest a huge amount at once. A salaried person who invests in equity funds and seeking long-term investment, SIP is highly recommended.
Also, investing in SIP always works when the market falls. It happens because investors can accumulate a large number of mutual fund units when the price is low.
If we break down the monthly SIP of ₹5,000/month in the same returns for the five years, you will receive a return that would be close to ₹4,10,000 at the end of 5 years.
1. Investors Don’t Necessarily Require to Monitor the Market Closely
Lump-sum investments mean bulk commitments that investors must have known when they enter the stock market. It is suggested to do investment in lumpsum investment only if you invest when the stock market is low.
In the case of SIP, you can enter the market during different stock market cycles. Investors don't require to watch market movements as closely as they would for lump sum investments.
2. Low Investment Requirements
You can begin investments with as little as ₹500 per month. However, lump-sum investments require at least ₹1000 although mutual funds in India set a lower limit as ₹5000. To calculate the estimated returns, investors can use SIP calculators.
3. Power of Compounding
SIP works on the power of compounding. In this, the interest earned on SIP investments is reinvested in the scheme.
4. Averaged Costs
As SIP leads to mutual fund purchases during different market cycles, the cost per unit is averaged out over the overall investment horizon.
More units are purchased during a market low, compensating for purchases made during a market high. This can help tide over market fluctuations and even out the cost. Units can then be sold when the market is performing well.
5. Inculcate Financial Discipline
SIPs improve your financial discipline as it automatically puts you in the habit of saving frequently.
The following factors help you to identify the right investment route:
1. Amount
If you have a huge amount in your bank, a lump sum investment may be a good strategy for you as it saves you from spending a huge amount of money. If you are a salaried person, then SIP would be a good option for you.
2. Market Timing
When a stock market becomes low, lump-sum investments will generate high returns. If you are not comfortable with the stock market cycle, SIP will help you as it can minimize your market risks.
3. Fund Type
Market volatility plays a crucial role when it comes to stock market returns. In the case of equity funds, market volatility highly matters. Debt funds are less affected by the market trends and give higher returns for SIP and lump sum investments.
Highly Affordable
SIP helps you to start your investment with a minimum amount of ₹500.
Disciplined Investing
SIP helps you to maintain disciplined investing as with SIP
Power of Rupee Cost Averaging
Rupee Cost Averaging helps in reducing the average price of the purchased units.
Less Stressful
SIPs minimize the requirement for you to time the market. You can invest a fixed amount every month throughout the life cycle.
Power of Compounding
If you make a lump sum investment of ₹3,00,000 in an equity fund for 5 years that gives 12% returns per year, the estimated returns would be around ₹5,25,000.
Better Control on Investments
Lump-sum investments allow you to switch between the schemes that are based on the market conditions and you can earn higher returns. However, this requires considerable investment experience.
Investment via SIP or Lumpsum always offers you better returns than other investment types. If you are a beginner who wants to start investing with less risk, always go for SIP as it may provide you with good returns. Also, with SIP you get the returns that are heavily based on compounding effects.
सोने और चांदी मे ब्याज दरें बढ़ोतरी के निर्णय के बाद आई मंदी आगे तक जारी रहने की सम्भावना नजर नहीं आ रही है। निचले स्तरों पर सोना और चांदी के भाव पिछले सप्ताह सपोर्ट लेते दिखे और कीमते सीमित दायरे में रहने के बाद हल्का सुधार दर्ज किया गया है। चांदी के भाव में भी पिछले सप्ताह सकारात्मक कारोबार रहा। सोने के विपरीत दिशा में चलने वाला डॉलर इंडेक्स में ऊपरी स्तरों पर दबाव बना है।
और 10 साल अमेरिकी बॉन्ड यील्ड में सामान्य तेज़ी रही। क्रिप्टो करेंसी बिटकॉइन मे पिछले सप्ताह दबाव बना रहा। अमेरिकी फेड के अन्य सदस्यों के अनुसार मुद्रास्फीति छोटी अवधि में मुद्रा नीति निर्धारकों के अनुमान से ज्यादा हो सकती है। जबकि फेड प्रमुख जेरोम पॉवेल ने पिछले सप्ताह ब्याज दर वृद्धि को धीमी गति से बढ़ाने पर जोर दिया है।
जिससे कीमती धातुओं में हुई गिरावट थम गई है। डॉलर इंडेक्स मे सप्ताह में 0.5 प्रतिशत की गिरावट रही जबकि कॉमेक्स में सोना पिछले सप्ताह 0.7 प्रतिशत तेज़ हुआ और 1800 डॉलर प्रति औंस से 1770 डॉलर के दायरे मे कारोबार किया। एमसीएक्स में सोना 0.7 प्रतिशत और चांदी 1 प्रतिशत तेज़ी रही। अगस्त वायदा सोना 47050 रुपये प्रति दस ग्राम और जुलाई वायदा चांदी के भाव 68300 रुपये प्रति किलो पर रहे।
इस सप्ताह सोने और चांदी मे तेज़ी रहने की सम्भावना है। इसमें 46600 रुपये पर सपोर्ट है तथा 47400 रुपये पर प्रतिरोध है। चांदी में 67000 रुपये पर सपोर्ट और 69000 रुपये पर प्रतिरोध है।
Any investment portfolio whether it is of the stock market or other, is often associated with different types of risks.
No one knows when there may be a stock market crash but to cope with it, we can take certain measures to minimize the stock market risks by using tested and certified tactics.
The most appropriate way to save your portfolio from the stock market crash is hedging and diversification.
Whether you are planning to pick an individual stock or ETF investing, a lot of hedging strategies can be used to minimize the downside risks and other risks as well.
Hedging in finance refers to a list of strategies that help us to reduce the risk of uncertainties while monitoring our current finances.
Hedging tactics help investors to limit their strategies arising because of ups and downs in the price of the investment.
In short, hedging in the stock market acts as a safeguard against the losses occurring from the investment strategies.
Portfolio hedging is a list of strategies used by investment managers that mitigate the risks of adverse price movements in an asset.
For example: if we have an open position in the stock that is trading at Rs. 200, but due to some negative news circulating in the market regarding the stock, the price of the stocks has fallen.
Now, to mitigate the losses, we can choose an alternative path by taking a short position in the same stock in the derivative market.
You can implement a hedging process by buying another asset that has the ability to give you high returns with less time or by short selling an asset. Many investors use short selling during the stock market crash as they find the best way to overcome the potential losses.
It may be noted that hedging is used to reduce or minimize the losses but it cannot eliminate the complete risks associated with the stocks. Hence many investors only hedge a part of their portfolio so as they can save themselves from a complete loss.
Derivatives
Derivatives are the most effective hedging tool that is used against their underlying assets. Traders mostly use derivatives as a strategy where the loss for one investment is compensated by the gain of incomparable derivatives.
Derivatives are the financial contracts that derive their value from an underlying asset such as stock, commodity, currency or more. An option is a type of derivative that gives you the right but not an obligation to buy or sell a specific stock within a particular time.
Using Derivative as a Hedging Tool
Let’s consider a hypothetical situation, where you bought a stock with a belief that the price would go up. At the same time protect your stocks against the losses if the prices move down.
Here, we can hedge several risks associated with a stock with a put option. In a put option, we can have the right to sell the stock at the same price. For that, you have to buy a premium.
If the price of the stock falls, then we can exercise the put option and bring back the amount we invested minus the premium amount that we paid for the put option.
If we couldn't use the premium option as a hedging tool here, we would have lost the full investment amount.
Another hedging tool we can use is “Diversification”. In this strategy, we add multiple stocks to our portfolio that doesn’t rise or fall simultaneously. If the price of one asset collapses, the others remain safe. For instance, to minimize risks, many investors own bonds to compensate for the losses occurring from the stocks.
Thus when the stock price falls, the bond prices rise or vice versa.
Below are the 5 hedging strategies commonly used by investment managers to minimize the risks:
1. Forward
The forward contract refers to the agreement in which traders can buy or sell underlying assets at a fixed price on a date that is pre-defined by the two parties. Forward contracts include many contracts such as forward exchange contracts for currencies, commodities and more.
2. Futures
A futures contract refers to a contract where two parties agree to buy and sell a particular asset at a predetermined price at a specified date in the future.
3. Money Market
A money market is a type of financial market where short term buying and selling can be made with financial assets that are having a maturity of one year or less such as selling, borrowing, lending with a maturity of one year or less.
1. Asset Allocation
Traders use asset allocation to diversify their portfolio with more than one asset class used. For instance, traders can invest 60% in equity and the rest 40% in other asset classes such as bonds, derivatives in order to have a balanced portfolio.
2. Structure
Traders can invest a part of the portfolio in debt and others in derivatives. As the debt portion maintains the stability of the portfolio, derivatives on the other hand protect the portfolio from the downside risk.
3. Options
The option is a good strategy that helps traders to buy a put option to reduce the losses from the equity market.
Hedging is used to overcome potential losses in the stock market. A hedge is an investment that protects our finances from a risky situation. It is done for minimizing the chance that your asset will lose its value and also limits our losses to a known amount if the asset does lose value.
If you are a salaried person whose income is between 5 lakh to 15 lakh annually, you must be aware of the term tax liability. As the famous saying goes “ A penny saved is a penny earned”. Tax planning is the best way through which you can not only save tax but also increase your salaried income in an effective way.
Once you ascertain the amount of tax you have to pay, you must plan to save tax by availing of tax deduction under the provision act of Income Tax Act.
To achieve maximum tax benefits, you can choose to invest in tax saving options under several provisions of the Income Tax Act.
It could be anything from making voluntary donations, taking a home loan or asking your employer to restructure your salary.
The perfect time to plan for tax saving is earlier as much as you can, mainly at the beginning of the FY to prevent any stress or hassle while filing your INR.
Making an investment of Rs 1.5 lakh under section 80C helps you to minimize your taxable income in the best possible way. Additional deduction of Rs 50,000 can be claimed by investing in NPS under 80CCD.
On buying Medical Insurance, the maximum deduction allowed is Rs 100000 out of which Rs 50000 is for self and family and Rs 50000 for parents if they come under the senior citizen category under Section 80C.
Claim deduction up to Rs 50,000 on Home Loan Interest under section 80EE.
The income tax department deduces your tax liability based on your annual income. As per the IT act, individuals who have an income between 2.5 Lakh and 5 Lakh comes under the tax slab of 5% for an annual income. The age limit is 60 years.
Similarly, there are different income tax slabs for individuals having different incomes. For instance, a tax slab of 20% is applicable for an annual income that comes between Rs 5 Lakh and Rs 10 Lakh.
While the tax slab of 30% is applicable for the individuals whose annual earnings come above 10 Lakh. It may be noted that an additional amount is also payable for health (4%) and education (4%).
However, the government provides a full tax rebate for individuals who have an income below 5 Lakh.
The foremost way to save tax is only through investing your money into several tax saving instruments. Here, you can avail of tax up to 1.5 lakh under section 80C of the Income Tax Act.
These are government-backed savings schemes that come with a lock-in period of 15 years. The interest rate of PPC changes every quarter. However, the current interest rate of PPF is 8%.
Employee provident fund is the perfect scheme for salaried employees. Here, 12% of the basic salary and dearness allowance can be deducted by the government. This fund is then invested in numerous government-backed securities.
NSC has a minimum lock-in period of 5 years with a fixed return of 8%. The interest on NSC is often counted as Rs.1.5 lakh under 80C and is tax-deductible if no investment options are using up the limit.
A national pension scheme is backed by the government, providing retirement benefits to employees. It provides for two accounts: Tier 1 and Tier 2.
These are tax saving mutual fund schemes giving the dual benefits of tax saving along with high market-linked returns. The minimum lock-in period of the equity-linked saving scheme is 3 years.
These schemes are similar to fixed deposits but have a minimum lock-in period of 5 years. The interest earned on Tax saving fixed deposits from 7% to 9%.
This is a government-backed scheme where you can invest a maximum of Rs 1.5 lakh annually. If you are blessed with a baby girl, you can easily open an account in the name of a baby girl and earn an interest of up to 8.5%.
Senior Citizen Saving Schemes have a minimum lock-in period of 5 years and are available to those whose ages cross above 60 years. The interest rate of SCSS is higher than prevailing FD rates and is currently 8.7%.
Did you know that taking a home loan could also provide you with tax saving? As per section 80C under the Income Tax Act, paying the amount for both the principal and interest rate of your home loan will be exempt from taxation.
You can also save tax by making voluntary donations in numerous relief funds such as the PM relief fund, funds for control of drug abuse and other similar funds. All these donations are completely exempt from taxation under section 80G of the Income Tax Act.
Restructuring of salary allows employees to restructure their salary in such a way that they are eligible for tax saving allowances.
These allowances include conveyance, House Rent Allowance (HRA), medical treatment etc. You can also claim tax exemptions on Leave Travel Allowance twice in four years.
Interest paid on education loan is allowed as deduction under section 80E.
The best time to start your tax planning investment is at the beginning of the financial year. Many taxpayers deliberately delay their tax planning which results in hurried decisions. Instead, if you plan tax saving at the beginning of the year, your investment can compound and achieve long term goals.
The above methods explained are various tax-saving methods that allow people to save taxes under different sections of the IT Act.
However, it is important to note that not all tax savers are the same, hence one should select the investments that best suit their individual needs.
The liquidity, safety and returns of the tax investment should be taken into consideration. Make sure that your financial decision is not only based on the returns to be gained from the products but also depends on the different goals that you have set for yourself.
Therefore, it is important to have a clear cut objective about investments and the tax-saving scheme should be linked to the desired objectives.
The current ruling political party in India has done a fantabulous come back with a majority of seats in 2019. However, the party took certain decisions which might have hampered its political presence in the rural areas.
The decisions taken by the prevailing party such as GST bills caused a major disruption among the poor people and as a result, the party’s dominance has only stuck to the middle class and HNI sectors.
In the recent election held in 2019, the BJP tally has come down to 99 seats as compared to 119 in 2019. It was due to the negligence towards the rural sector where the party performed poorly.
The party’s stronghold place called Saurashtra having 56 assembly seats, the ruling party could manage to win only 23 seats in 2019, which is far less than 36, in 2012.
The continuous negligence of rural areas has affected the party’s political presence to a much greater extent.
To cope with the situation, the Modi government has decided to invest more in the rural economy to shed its image as pro-industrialist and anti-poor.
Keeping this in mind, numerous programs have been designed to accomplish rural requirements.
In an initiative taken by the government towards rural people, the Modi government has decided to double the farm income by 2022. The government is all set to allocate Rs 1.07 Lakh Crore for the expenditure on rural development.
Of the total amount Rs 1.07 Lakh Crore, the government has already allocated Rs 48000 Crore to MNREGA for FY 2017-18.
According to the media sources, India has nearly 4 Crore households that are unelectrified and the government took a decision to provide electricity to every single village under the Deendayal Gram Jyoti Yojana.
Also, the Pradhan Mantri Awas Yojana plans to provide shelter for the rural people of India.
If things are getting done at this pace, analysts believe that the rural income will increase in the coming years, the rural consumption of resources will get a boom which in turn would prosper the rural society.
As a result, the whole Indian business scenario will completely change. This will also impact the stock market and the trading scenario. Hence trading in such stocks provides you with outstanding stock market trading returns.
Here, we have selected some of the stocks that are likely to benefit from Modi's rural push. These stocks can act as a long term bet for investment purposes. Below are the top 5 stocks which may get benefit from the rural policies:
Mahindra and Mahindra Financial Services are India’s leading non-banking finance companies in India. The company aims at focussing on the rural and semi-urban sectors. In addition to this, the company is the largest tractor financier.
As of September 2017, the company’s AUM consisted of auto/UV (28%), tractors (17%), cars (22%), CV (12%), pre-owned cars (9% and SME (12%).
Its AUM is expected to grow at almost 17% CAGR over FY-17 to 19E to pick up the rural economy that is supported by the average monsoon from the last two years.
NCDs are forecasted to be approximately 60% of the funding mix in FY19E which will reduce the cost of funding and margin expansion by nearly 130bps.
Investing in MAMFS stocks offers you great stock trading returns.
Hero Motocorp Limited is the largest manufacturer of motorcycles in India having a market share of 53% as per the Q2FY18 domestic sales data. The company recovers half of the revenue from rural India.
In FY18, the total volume growth experienced by Hero motorcycle was 13% and two-wheeler was 11%. Moreover, the company is planning to launch its new brand new scooter to increase the market share in a particular sector.
With this aim (launching of the scooter), Hero seeks a 25bn Capex plan for over 2 years.
The government’s push to double the farm income, adolescent monsoon and the increment of urban income is the strongest points that will contribute towards the growth of the company.
Despite the company has made a late entry into the export market, it plans to do the exports in a double way in the upcoming years. Hero Corp seeks huge growth in the coming years and the stocks of the company will generate better share market trading returns.
Every citizen of India heard the name Dabur. Dabur India is one of the fast-growing FMCG companies in India that diversified its business majorly into the 4 segments: consumer care, retail, food and international business.
The company behaves like a beneficiary of rural expansion and development of existing as well as new products.
The company’s main products Dabur toothpaste and juices are the products that drive the company’s major revenues as the toothpaste are already reaching the rural areas.
To revive its rural consumption, Dabur India plans to penetrate nearly 60,000 villages.
The additional products launched by the company such as hair care, fruit drink and other ayurvedic products help Dabur to increase its volume growth.
Also, the company’s recent acquisitions in the African market in the hair care and personal segment strengthens its online presence with e-retailers which in turn will generate high profits.
Rallis India is a vast manufacturer of fertilizers, pesticides and fine chemicals. The company is an active member of the Tata Group, which aims to improve the quality and yield of the crops through the Rallis Samridh Krishi.
This is a digital initiative taken by a Tata Group that helps Indian farmers end to end Agriculture solutions.
Apart from launching the Rallis Samridh Krishi Yojana, the company is planning to launch its new products in wheat, rice, cotton and hybrid cotton segments.
By doing this, the company’s objective is to increase the market share of the Non-Pesticides Portfolio.
Rallis India also plans to increase its focus on plant growth to support the sustainability of crop yields.
The company is targeting a 20% sale’s increase from its subsidiary Metahelix.
Jyothi Laboratories Ltd is a renowned name in the homecare sector. The company is known for producing soaps and detergents for home care.
Although Jyothi laboratories is a south India based company, it has spread business in multiple sectors that would help it grow its market share in the respective categories.
The six powerful brands of Jyothi Laboratories are - Ujala (fabric whitener), Henko (fabric detergent), Exo (Dish Bar), Margo (Bath Soap), Prill (Dish wash) and Exo (Dish Bar).
These products contributed nearly 87% of revenue in FY17. Keeping this in mind, analysts have predicted that by investing in Jyothi’s laboratories, investors would generate better returns than other mid-cap stocks.
With the government’s initiative to strengthen the rural sectors, the companies stated above are doing their best towards rural growth. As a result, the stocks of these companies are likely to increase in the upcoming months.
Therefore, many analysts recommended these stocks by giving them a positive sign.
Stock’s performance has always remained uncertain. That’s the reason, analysts have to keep an eye on stock price movement. They use different tools and charts to analyze the stock’s performance in order to predict its future potential value.
The Liquor industry in India is one of the biggest alcohol industries across the globe stand behind the two major countries such as China and Russia.
The fast-growing demand for alcoholic beverages in India is majorly attributed to the huge population and young base and the consumption of alcohol by everyone & rising disposable income is strengthening the industry growth & Profits. With the vast population in India, it is one of the largest consumer markets.
Also demographically in India around 50% of its population below the age of 25 and around 65% below the age of 35. The major consumption of alcohol by volume is by the people aged between 18 and 40.
The demographic stats are expected to fuel the growth of the market over the forecast period at a rapid pace. Even the rapid urbanization of tier-II cities is further adding strength to the market growth.
Analyst forecasts that the Indian liquor market to grow at a CAGR of 7.4% during the period 2017-2030. The market is also anticipated to reach USD 39.7 billion by the end, As alcohol consumption is growing in urban areas.
Indian Made Foreign Liquor is accounted for the largest market share of 40% in 2016. Whereas the foreign liquor bottled in origin or imported alcohol shows fast growth in terms of its consumption in the last few years and which is likely to grow with a CAGR of 25% at a faster pace in the forecast period.
In India, the Southern part is accounted for the biggest market with a market share of more than 45% in terms of alcohol consumption, with a significant rise in urban areas and female alcohol consumers in that region.
North India and Western India are expected to be the new fast-growing markets with the growing number of urban cities.
According to the report, the major driver in the Indian market is the fastest-growing consumption of alcohol owing to fast urbanization in the country.
A huge population migrating towards developed cities and exposed to a variety of alcoholic beverages, including IMFL, and contributing to the market growth.
Although India is a young country, more than 55% of Indians are in the age group of 18-45. This is the target age group for the industry as potential customers.
One challenge in the Indian Liquor market is liquor licensing and sourcing.
For starting a new business and expansion, liquor licensing and sourcing is emerged as the major growth barrier for the industry, as it is the necessity to obtain mandatory licenses and regulation which is related to hours of operation and minimum age of consumption, which is different from state to state.
After the impact of Covid-19, the sales levels are showing sharp growth in this sector the sales reach the previous levels before Covid-19.
In the same manner Unlocking in the country will lead to a sharp increase in sales. Imposing extra taxes also not affected the consumption in the country.
This industry is an untouched segment in the country and is expected to grow at a faster pace. As the competition is very less with limited market players.
Whereas the consumption is increasing day by day. Even at the time of lockdown, the companies manufacture alcohol-based hand sanitizers which were in demand.
Everyone who is looking for a haven investment that will last for generations to come should be investing in an SGB. In the long run, this yellow metal can be a superior investment choice to mutual funds. This is because if the bond is held till maturity, there are no capital gain taxes levied in this investment.
The fact that it is issued by the RBI also makes this investment vehicle investment-grade i.e., relatively immune to default. Another point to note is the natural liquidity of this vehicle.
An SGB can be traded on the stock exchange as the bond will be available in Demat form. However, if an investor wants to hold the bond in physical form they can do so as well.
Another noteworthy point to mention is the fact that the bond can be used as collateral for loans. There are also indexation benefits that allow you to lower your long-term capital gains, hence bringing down your taxable income. However, these benefits are only applicable if the bond is transferred before maturity.
Speaking of Gold itself several economic indicators indicate that gold prices are going to shoot up. Some of those indicators include sticky inflation and the negative real yield on bonds.
There is generally an inverse relationship between bond yields and gold prices. Increasing trade wars is also a factor that can lead to a shoot up in the price of Gold.
The aim of issuing an SGB was to reduce the purchase of physical gold which is technically a dead investment and shift domestic savings into financial savings. This is a step towards stimulating the economy of the country. It also relieves you of the hassle of storing physical gold.
SGB is an ideal choice for someone with a long-term horizon. The reason for this is that an SGB also provides a 2.5% interest on an annual basis. The interest is taxed at the applicable tax rates.
The tenor of the bond is 8 years with a lock-in of 5 years. However, if you’re a short-term investor, Gold ETFs and mutual funds might be the right choice. Investing in Gold can also provide diversification to your portfolio.
It is also a suitable investment choice during periods of economic instability, a situation we are facing right now. For an average investor, a minimum investment of 10% of their portfolio in Gold is the ideal choice.
Here at Swastika, we don’t recommend schemes based solely on their returns. We analyze an investor's belief and constraints before investing.
We genuinely believe that a Sovereign Gold bond will reduce the risk of your portfolio. In these turbulent times managing risk has become the need of the hour. A portfolio should be combined with both risky and riskless assets.
However, most investors just invest in stocks because of their popularity. Adding an SGB to your portfolio can immensely reduce the risk and provide diversification.
However, we would like to mention that this vehicle is not entirely risk-free. There is a risk of capital loss if the market price of gold declines due to some unforeseen circumstances.
But rest assured that the investor does not lose in terms of the units of gold that have been allotted to them. Noting the fact that there is a risk, it is minimal and negligible which is why we urge you to invest in Gold today.
The popularity and the increased inflow of investment in this vehicle have not stopped. It is increasing its pace with every tranche.
The Sovereign Gold bond scheme of 2021-22 will be issued in six tranches. The first three tranches are currently closed for the subscription. Don’t delay and miss this incredible investment opportunity. Invest in SGB today.
Average is a word that we all have acquainted with. We all have learnt the topic of averages in school and the moving average is considered as an additional version of it.
As we all know, calculating averages become an integral part of our lives as it is the fundamental term used to express the central or typical value in a set of data particularly the mean, median or mode.
Now, you may be interested to know that moving averages can also be used for trading. Before we take a dig deep into moving averages and how it adds a value in the stock market trading, let's get a brief of the term.
Moving Averages are trend indicators that are widely used to predict future stock price trends. They are mostly used because of their simplicity and effectiveness.
The most common moving averages are 15-, 20-, 30-, 50-, 100- and 200- day MA.
There are mainly two types of moving averages used in trading, which are SMA (Simple moving average) and EMA (Exponential Moving Average). The SMA is calculated as: take the closing price of a security for the relevant period, add them and divide the sum by the period number.
Where in EMA, each price in the MA is given an equal weightage. Also, the calculation of EMA is more complex than SMA as it gives more weightage to the most recent price.
The moving indicator records the data based on the past price trends and hence it is known as the lagging indicator. I.e the longer the moving average time period, the greater the lag. A 200-day MA is lagging more than a 20-DMA because a 200-DMA is plotted based on the past 200 days. Whereas the latter is plotted by using the latest 20 days data.
You can easily customize the MA indicator. The shorter the MA, the more effectively its price changes.
Below we are mentioning a few points on using moving averages:
When a stock trends upwards, its moving average will act as a floor price.
When a stock trend downwards, the moving average will form a resistance with the stock price which is currently going downwards.
You can also plot two or more MAs for stock to detect crossover i.e. the point at which Moving Average intersects each other.
This brings us to the moving average convergence divergence (MACD). The MACD is calculated as the difference between a stock’s two EMAs - the 12 periods and 26 periods EMA.
Now, explaining the MACD signal line - a nine period EMA of the MACD value. When plotted over the MACD line, it acts as a trigger to buy or sell.
It is a buy signal when the MACD crosses the above signal line, it is a sell signal when it crosses the below signal line.
Price crossover is defined as a cross over above or below the Moving Average, its immediate mark a change in stock’s price trend.
Two Plotted MAs are bound to crossover at various points. A comes were the short term MA crosses above the long term MA signifies a bullish pattern.
When the short term MA crosses below the long term MA, it indicates a bearish pattern.
If the stock price counted above 200 days MA, it marks a buying trend whereas if a stock price comes below 200 days MA, it gives a sell indicator.
Moving Average Disadvantages
Moving averages are calculated based on the past trends and it shows nothing about prediction based on present trends. Hence, the results using moving averages can be random. There is a time where the markets support MA/resistance and trade signals, while at other times the results are different than what MA shows.
Another Problem is Price fluctuation.
If the price action changes frequently and it swings forth and back generates multiple trade signals, it confuses the MA.
At this point, it's good to seek another trading indicator to clarify the trend.
The same thing happens with MA crossovers when MA gets tangled up for a period of time which in turn results in multiple trading losses.
Moving averages work well when the trending conditions are strong but fail in choppy or ranging conditions. The best solution is to adjust the time frame that can solve this problem temporarily. However, at some point in time, these issues frequently occur regardless of the time frame chosen for the Moving Averages.
A moving average simplifies price data that can be used by monitoring past trends. It has been observed that EMA reacts quicker to price changes than SMA.
In some cases, it gives a good response to the research while in some cases it gives the wrong signal. Moving averages with a shorter lookback period (20 days) will also give a faster response to price changes than an average with a long lookback period i.e. 200 days.
Moving averages crossovers is still a popular strategy for both entries and exits. MAs can also highlight areas of potential i.e. support or resistance.
Mutual funds have emerged as one of the popular investment options among investors. This is because investors find themselves much relaxed while investing in MFs as the money is invested in lots of different sectors so that the fear of losing money has been minimized to a certain extent.
Earlier, investors used to invest in stocks or government securities. People who knew about the stock market only invest in stocks, however, people who had no idea about stocks, preferred to invest in government securities as they found it a better yet safer investment option than stocks.
As time flies, new forms of investments have started to take place. One such investment option is Mutual funds.
A mutual fund is a company that collects money from different people and invests it in stocks, bonds or other securities. Mutual Funds are operated by experts which are also called fund managers who put the fund's assets into different sectors in an attempt to produce capital gain or income for the fund’s investors.
Investors now are taking a huge interest in mutual funds as they are less riskier than stocks. Also, they are actively managed by fund managers who are experts in managing a portfolio, fund allocation and more.
Although there are a lot of investing platforms available now, it's always good to take a sip of knowledge and market knowledge about how a mutual fund works and how to check the performance of a mutual fund company:
So, how do you measure the current performance of a mutual fund?
A study on mutual funds regarding the performance of a mutual fund reveals that the market share and the change in the market share are the most essential metrics to evaluate a company’s performance.
You might have known that the past performance of a mutual fund does not decide the future performance of the same fund. It simply means that you cannot expect a guarantee of ROI from these funds despite having a strong past record. Hence, you need to figure out the other factors that help you to assess the performance of a mutual fund company.
Firstly, you should keep track of your investments so that it will help you to make informed decisions that can lead to higher growth.
There is no need to say that the capital market is volatile which means it keeps fluctuating with the overall economic conditions. These conditions affect the overall asset allocation of the portfolio. For example, the market volatility and continuous changing economic conditions can change the allocation of 50:50 equity-debt to 60:40 equity-debt which can increase the risks of the fund.
Secondly, fund evaluation allows you to compare your investments with similar funds. Hence, a review and balancing may be required to keep the risk profile of the portfolio intact.
Here, we will share all the details about evaluating a mutual fund’s performance:
The purpose of investment should be cleared before investing money into a mutual fund. Always set your investment goals before planning any mutual fund for investment. Once you finalize a mutual fund based on an investment goal, it would be better to evaluate the performance of the fund you have selected.
It may be noted that different mutual funds come with different goals. For example, if someone wants high growth in the long term, and has a high-risk appetite, then he/she can choose equity mutual funds. Therefore, it is important to find out your financial goal first and then decide your investment.
It is difficult to check the performance of a mutual fund in isolation. Hence, it is suggested to make a small list of the best mutual funds in a particular category and compare them regularly among various funds.
Past performance of mutual funds gives no indicator of its future performance. Now, many mutual funds come with a disclaimer stating that past performance cannot provide the guarantee of a mutual fund’s performance.
Although the above statement is considered true to some extent; the past performance of data can provide you with other relevant information. For instance, the historical performance of a mutual fund allows you to map the fund managers’ performance across different market cycles.
If a fund can give higher returns than the benchmark even during the worst market conditions, you can get a realization about how fair it would be in the future.
Needless to say, a mutual fund company charges you for its services and expertise, which is further broken down into other components. The fee changes according to your plan you invest in i.e. direct and regular.
It may be noted that a fund with a higher fee always performs better than other mutual funds.
Markets are volatile and hence every fund is associated with certain risks. Every mutual fund sets its benchmark and therefore they have been always comparing the set benchmarks. Generating returns more than the set benchmark tells many things about a fund manager. I.e. the ability and strategy of a fund manager like how well he/she performed despite similar risks across several market cycles.
Everyone knows that the market is highly volatile, but that doesn’t mean that you need to evaluate your performance daily. On average, you should assess a fund every six months to a year.
Evaluating a fund over a shorter period doesn’t give you accurate information about the performance of a fund.
If all this sounds too much, it’s better for you to invest in regular funds.
The key points mentioned in the blog above will guide you to find the right mutual fund that perfectly suits your investment goals. Do remember, always analyze a fund’s performance according to your set financial goals before you open mutual fund account online.
When it comes to investing, the name of the stock market comes second to none as many investors or traders actively participate in trading and achieve profit from it.
Investors are of two types: first are those who hold equity investment for more than 1 year and show their income as LTCG or long term capital gains. The second type of investors is those who hold equity investments for more than 1 day or less than 1 year.
There are several types of investors in every financial market, each of them applies its strategy to achieve its financial goals. Hence, the ROI generated by each investor can vary from one to another.
Hence, taxation applied to people who depend on salaried income can be easily calculated. However, the taxation applied on trading income can be a bit complicated as compared to the former one.
Since the income generated from trading varies from trader to trader, taxation law cannot be applied uniformly to all the traders. Like income, the amount of tax applied can also be variable.
If you are new to the trading world, understanding taxation seems to be a difficult word for you.
Here, we will explore all the aspects of taxation that help you to understand tax on different trading styles.
Taxation in trading can be classified into four types: Long term capital gain, Short Term Capital Gain, Speculative Business Income, Non-Speculative Business Income.
All the types of taxation along with their features and benefits are mentioned below; read them carefully:
Long term capital gains are a type of tax levied by the government of India if an investment is held by a trader for a specific period. For instance, if a trader is seeking long term investment and parks its investment for 1 year or longer than it, any purchase or sales profit from the investment comes under long term capital gain tax.
If we talk about equity investment, Long term capital gains are exempted under section 10 of the Income Tax Act. In such cases, the profits are entirely tax-free. However, this is only applicable under certain conditions.
For instance, if you make any transaction via a recognized exchange and sell your equities within the country, long term capital gain taxes are exempted.
As said above, the tax implications for long term investors can be applicable under certain conditions.
If your equity investments cross the threshold of over 1 lakh in a financial year, the tax will be charged at 10%.
In short term capital gains, the duration of holding securities is less than 1 year. According to the norms, the duration of investment in short term capital gains can be held for longer than a day but shorter than a year.
The tax implications on trading income via equity, any capital gains generated by selling a stock leads to a tax deduction of a profit of 15%.
However, your short term capital gains will never be taxed at a standard 15% rate unless your total taxable income is below Rs 2.5 lakhs.
Are capital losses carry forward in long term capital gain and short term capital gains?
Since long term gains are tax-free, they do not carry forward long term capital losses.
Short term capital gains are taxable and therefore they can be carried forward for a year of 8 years from the financial year during which the losses occur.
One of the simplest ways of filing your capital gain returns is to show them as a part of your income statement. However, there are cases where your profits/losses from share trading cant come under income tax returns.
This happens to the individuals, who are traders by profession or most of their equities are held as a stock in trade; in such cases, the profits or losses from the stock trading can be counted as business income and the returns generated on it must be filed accordingly.
To distinguish between normal capital gains and capital gains as a business income, the Income Tax has set certain parameters that are explained below:
If the volume of share trading transaction of any individual exceeds Rs 2 Crore in any FY then the individuals are required to get an audit and then the audit may insist them to file this income as a business income.
Another way of differentiating capital gains and capital gains as business income is the profit threshold.
The income tax department has set a fixed profit percentage (6%) to identify income coming from equities.
If the profit percentage is below 6% of the total volume traded, then the income comes from stocks and shares can be considered as business income rather than normal capital gains.
Business income that comes under intraday equity trading is considered speculative. It is defined as the income generated through trades in which securities are bought and sold within the same day.
As the capital gain tax is taxed at a specific percentage; there are no rates for speculative business income. Instead, your speculative business income is taxed alongside your tax income according to section 43 of the Income Tax Act.
This means, if you have salaried income along with speculative business income, the tax will apply to your combined income.
Business income that comes from trading futures and options on the recognized exchanges are considered as non-speculative business income. Just like speculative business income, the income generated from F&O also added with your other income sources. As a result, the appropriate tax rate slab is applied to your overall income.
Traders are very well informed about the market condition, stock’s value, company performances, similarly they also need to be informed about the tax rate slab applied to the different trading styles.
This information is not only apt for traders as well as for newbies who are seeking investment in stocks for the very first time.
Apart from last year's lockdown journey, we all accept a better chance in the year 2021, where the whole country suffers under it, the country also faces huge economic losses and has gone through a tough time.
Even the financial markets collapsed to their highest level. But this year in 2021 we saw some good signs of recovery along with multifold returns from the markets.
Especially from newly listed companies since from January 2021, there are 18 companies got public or (SME-IPO) out of which 11 companies have given fabulous listing gains whereas 7 companies were not up to the mark and gave a negative listing from which 2 companies outperform after its negative listings.
IPO Performance: A company with an issue size of Rs 4633.38 Cr with the issue price of Rs 26 per share, has given a negative listing on listing day. The stock is listed at Rs 24.90 with a discount of -4.42 %. IRFC is trading still below its issue price with a negative return of 19.23%.
IPO Performance: A Company with an issue size of Rs 1176.00 Cr with the issue price of Rs 1490 per share, has given a positive listing on listing day. The stock listed at Rs2607.50, and closed Rs 3118.65 with a Premium of 109.31%. Indigo is trading still above its issue price with a positive return of 53.8%
IPO Performance: A Company with an issue size of Rs 1153.72 Cr with the issue price of Rs 518 per share, has given a positive listing on listing day. The stock listed at Rs 618.80 and closed 527.4 with a Premium of 1.81 %. It is trading still above its issue price with a positive return of 2.95%.
IPO Performance: A Company with an issue size of Rs 412.63 Cr with the issue price of Rs 385 per share, has given a positive listing on listing day. The stock listed at Rs 498 and closed 445.95 with a Premium of 15.83 %. It is trading still above its issue price with a positive return of 28.96%.
IPO Performance: A Company with an issue size of Rs 3800.00 Cr with the issue price of Rs 275 per share, has given a positive listing on listing day. The stock listed at Rs 281.70 and closed 268 with a discount of -1.83 %. It is trading still below its issue price with a negative return of -7.75%.
IPO Performance: A Company with an issue size of Rs 100.00 Cr with the issue price of Rs 400 per share, has given a positive listing on listing day. The stock listed at Rs 615 and closed 645 with a premium of 66.66 %. It is trading still above its issue price with a positive return of 236.48%.
IPO Performance: A Company with an issue size of Rs 819.24Cr with the issue price of Rs 94 per share, has given a positive listing on listing day. The stock listed at Rs 109 and closed 121 with a premium of 29.15 %. It is trading still above its issue price with a positive return of 27.45%.
IPO Performance: A Company with an issue size of Rs 625.24Cr with the issue price of Rs 627 per share, has given a positive listing on listing day. The stock listed at Rs 900 and closed 812.25 with a premium of 29.55 %. It is trading still above its issue price with a positive return of 14.67%.
IPO Performance: A Company with an issue size of Rs 596.41Cr with the issue price of Rs 575 per share, has given a positive listing on listing day. The stock listed at Rs 1050 and closed at 1082.50 with a premium of 88.22 %. It is trading still above its issue price with a positive return of 60.1%.
IPO Performance: A Company with an issue size of Rs 510 Cr with the issue price of Rs 187 per share, has given a positive listing on listing day. The stock listed at Rs 212 and closed 208 with a premium of 11.39%. It is trading still above its issue price with a positive return of 5.61%.
IPO Performance: A Company with an issue size of Rs 760 Cr with the issue price of Rs 555 per share, has given a negative listing on listing day. The stock listed at Rs 520 and closed 526 with a discount of -5.24%. Now the stock trading above its issue price with a positive return of 23.28%.
IPO Performance: A Company with an issue size of Rs 823.70 Cr with the issue price of Rs 1490 per share, has given a negative listing on listing day. The stock listed at Rs 1359 and closed 1435 with a discount of -3.83 %. It is trading still below its issue price with a negative return of -8.1%.
IPO Performance: A Company with an issue size of Rs 600Cr with the issue price of Rs 130 per share, has given a positive listing on listing day. The stock listed at Rs 155 and closed 164 with a premium of 26.62 %. It is trading still above its issue price with a positive return of 71.85%.
IPO Performance: A Company with an issue size of Rs 1175Cr with the issue price of Rs 87 per share, has given a negative listing on listing day. The stock listed at Rs 73.95 and closed 75.20 with a discount of -13.45 %. It is trading still below its issue price with a negative return of -33.22%.
IPO Performance: A Company with an issue size of Rs 582.91Cr with the issue price of Rs 1101 per share, has given a positive listing on listing day. The stock listed at Rs 1990 and closed 1592 with a premium of 43.22 %. It is trading still above its issue price with a positive return of 62.46%.
IPO Performance: A Company with an issue size of Rs 582.34Cr with the issue price of Rs 305 per share, has given a negative listing on listing day. The stock listed at Rs 292 and closed 277.80 with a discount of -9.45 %. It is trading still below its issue price with a negative return of -19.33%.
IPO Performance: A Company with an issue size of Rs 452.87 Cr with the issue price of Rs 500 per share, has given a negative listing on listing day. The stock listed at Rs 489 and closed 587 with a Premium of 18.08%. Now the stock trading above its issue price with a positive return of 21.56%.
IPO Performance: A Company with an issue size of Rs 2500 Cr with the issue price of Rs 486 per share, has given a negative listing on listing day. The stock listed at Rs 436 and closed 465.25 with a discount of-4.7%. Now the stock trading above its issue price with a positive return of 24.62%.
पिछले सप्ताह कीमती धातुओं मे ऊपरी स्तरों से बिकवाली का दबाव रहा। अप्रैल के महीने के अंत तक आर्थिक आंकड़ों में मजबूती रही जिसके कारण कीमती धातुओं मे दबाव बना। अमेरिकी जीडीपी 2021 की पहली तिमाही में 6.4% तिमाही-दर-तिमाही बढ़ी है और पिछले सप्ताह भर में 553,000 प्रारंभिक बेरोजगार दावे दर्ज किए गए, जो पिछले सप्ताह से कम है। सप्ताह के शुरुवात में अमेरिकी राष्ट्रपति जो बिडेन द्वारा प्रस्तावित 1.8 ट्रिलियन डॉलर का प्रोत्साहन योजना पर निवेशकों की नज़र है। जापान में, मार्च में औद्योगिक उत्पादन में महीने दर महीने 2.2% की बढ़ोतरी हुई और टोक्यो कोर कंज्यूमर प्राइस इंडेक्स में अप्रैल में सालाना आधार पर 0.2% की बढ़ोतरी हुई है। चीन ने शनिवार से शुरू होने वाले एक सप्ताह के अवकाश के आगे वृद्धि दर धीमी दर्ज की है। शुक्रवार को जारी चीनी आंकड़ों के अनुसार अप्रैल के लिए विनिर्माण क्रय प्रबंधक सूचकांक (पीएमआई) घट कर 51.1 पर पहुंच गया और गैर-विनिर्माण पीएमआई घट कर 54.9 पर रहा। जबकि अप्रैल के लिए कैक्सिन मैन्युफैक्चरिंग पीएमआई मे बढ़त दर्ज की गई है। चीन और जापान मे सप्ताह में शुरुवाती अवकाश होने से कीमती धातुए सिमित दायरे मे रह सकती है।
इस सप्ताह प्रमुख अर्थव्यवस्थाओं से जारी होने वाले आंकड़े जिनमे, सोमवार को अमेरिकी मैन्युफैक्चरिंग पीएमआई, बुधवार को एडीपी नॉन फार्म एम्प्लॉयमेंट चेंज और सर्विस पीएमआई, गुरुवार को अनम्पलॉयमेंट क्लेम्स तथा शुक्रवार को पैरोल के आंकड़े प्रमुख है।
इस सप्ताह सोने और चाँदी में तेज़ी रहने की सम्भावना है। इसमें 46300 रुपये पर समर्थन और 47200 रुपये पर प्रतिरोध है। चाँदी में 68000 रुपये पर सपोर्ट और 70000 रुपये पर प्रतिरोध है।
The stock market offers various trading platforms for investors to trade in the stocks without any hassle. This is the place where individuals invest their funds for the long term. However, there are other traders too, who enter these markets with the purpose of making small quick profits by trading for minutes or hours.
These traders are known as scalpers, who believe in making immediate profits rather than waiting for the long term.
Before getting a dig deep into this, let’s understand how scalping can be used to collect huge profits through small trading techniques.
If you have heard the name scalping, you would be wondering what these scalpers are and how they achieve profits from the deal.
Scalping is a short term trading strategy used to achieve profit from the volumes of trade placed, rather than focus on maximizing capital gains on each trade.
These are short trading styles predominantly used in intraday trading. Scalpers trade frequently and in small trading sessions.
The name scalping got famous due to the traders who adopt such styles - they quickly enter and exit from the market by making small profits from a large number of trades, throughout the day trading.
A scalp trader usually follows a strict exit policy as one huge loss could eliminate all the profits made throughout the day. Therefore this trading style requires discipline, stamina and decisiveness.
If one possesses these qualities with the right strategy, he/she can become a successful scalp trader.
Scalp traders often enjoy the trading style that it requires. However, to achieve successful deals, you are required to execute numerous technical trading techniques to identify profit opportunities in the market.
Before answering the question, how does scalping work, lets understand the trading mechanism of scalping.
Scalp trading is a short term trading style that includes buying and selling of assets multiple times to book profit. Trading multiple times allows a trader to earn from the price difference.
It involves buying an asset at a lower price and selling at a high or vice versa.
Scalpers mostly try to find out the highly liquid assets that are volatile in nature i.e. these assets do frequent price changes during the day trading. Do remember, for scalping, it is highly important for an asset to be liquid, only then will you book profits throughout the day or otherwise you may face huge losses.
Scalpers believe it is easier to make money through small deals because it is less risky from the market volatility perspective.
There are other traders too, who hold onto their position for some weeks or months for making a huge profit. However, scalpers believe in making multiple profit opportunities within a small span than the bigger one.
Here some principles of scalping that every trader needs to follow:
Make Small Moves:
Small moves are easier to obtain than large moves. For making a huge profit, the stock market has to be insatiable i.e. it requires a high imbalance between supply and demand. In such situations, small prices are comfortable to deal with.
Small Moves happen Frequently:
Small moves in the stock market always work the best. Even many experienced traders use small moves when they see the market is quiet for some time.
Lower exposure Limit Risks
A brief exposure in the market reduces the chances of running into an adverse condition.
Trading methods used by Scalpers
While other trading styles like position trading use fundamental analysis, scalp trading however depends on technical analysis. This is because technical analysis includes identifying the historical price movements of assets and comparing them with the current asset’s price. For this, scalpers use different charts and patterns.
The comparison of historical data with the current data helps scalpers observe patterns and predict future price movements with ease.
Scalpers use charts and patterns and observe them with a specific timeframe. In other words, they do analysis in small time frames which are the shortest of all trading styles.
An intraday trader uses five minutes or 10 minutes trading charts to make five deals a day. Scalpers, on the other hand, uses a time frame of 5 to 10 seconds to make 50 to 100 trades during the day.
Scalpers play smartly with the trading, also they use several market’s tactics to achieve a high speed of trading. Such tactics are the market’s time and sales - a record of buying, selling and cancelled transactions.
Firstly, scalpers need to minimize the usage of multiple technical indicators. Trading indicators are basically the plotted lines on the price charts that help traders to identify whether to buy or sell assets.
For a scalp trade, it would be beneficial if you invest in profitable stocks as it will help you achieve more profits throughout the day. Also, the quality number of trades in a single day makes your margin requirement and risks reduced.
Margin is the borrowed funds that brokers lend to the traders so that they can buy securities more than they afford.
As a scalp trader, it is important to master certain strategies that will give you bountiful benefits of profit booking. Traders apply multiple strategies which confuse them with which strategy should be used or which one is not?
For example; you made 10 trades and used various methods to execute them. Now you would get confused as to which strategy worked well for you? Therefore it would be ideal if you use 2 or 3 strategies and execute your trade order.
Scalping is a short term strategy that is not limited to futures alone. In fact, you can use scalping trading in forex and stocks as well.
The preferred market for scalping are:
Reducing losses is one of the most significant concerns a trader must pay attention to. A scalper trade in many traders in a single day. Some scalpers book huge profits from it where others suffer a loss. Therefore, a scalper needs to learn to cut down the losses in every losing trade to mark a good profit in scalping.
Scalping is a process where a trader uses short time frames, chart plans to book a profit throughout a day. Scalping is a difficult trading process that demands dedication, speed and discipline to execute scalp deals.
If you are an experienced trader who knows how to trade intraday and aims for short term trading, you can go for scalping trading. However, if you are not aware of intraday trading strategies and wants to invest in the long run, scalping is not your cup of tea. Choose wisely and execute your trades according to your trading styles.
As far as the doubling of money is concerned, penny stocks come second to none. This is because such stocks present a wide range of opportunities for new investors as well as experienced both.
And when it comes to investing in money, investors often seek mid-cap and large-cap stocks, however, the majority of them neglect penny stocks.
Penny stocks are small stocks and come under the small-cap category. If you are a regular trader or investor, you must have heard the term penny stocks. Well, these are small-cap stocks that attract minimal pricing. According to the Indian stock market trading scenario, stocks whose market capitalization is less than Rs 10, comes under penny stocks.
Due to low market capitalization, these stocks seem alluring to many investors as these shares are available at low price and investors would purchase more shares with low investment amounts.
Another important reason behind the strong hype of penny stocks is, they have a low frequency of trading, their prices are subjected to sudden and high levels of volatility.
Let’s understand penny stocks with a suitable example:
A company XYZ Limited has a share price of Rs 500 and a penny stock to be Rs 5. If an investor has a capital of Rs 10,000, they would be able to buy only 20 shares of the established company. With the same capital amount, they can purchase the penny stocks of 2000 shares.
If you are new to the stock market, then penny stocks can act as a good choice for you. This is because penny stocks enable you to learn the ins and outs of trading first hand, i.e stock market learning. Since the price of penny stocks are low, investors purchase a high volume of penny stocks with a limited capital amount. This also helps investors to minimize their losses.
Penny stocks are not traded in the share market frequently. Due to a low volume of trades, investors may find it difficult to find both buyers and sellers. However, they can overcome this limitation to a certain extent by holding the shares of penny stocks for the long term.
Penny stocks are easy to trade and therefore many investors especially newbies find it easy to trade in the stock market. Price movement of penny stocks are speculative and require very less methodical technical analysis. This makes investors the perfect choice for you if you are just making an entry into the world of the stock market.
There are multiple companies with good financials and growth potential that are being traded for pennies. By identifying these companies, investors can generate good returns and watch their investments grow.
Penny stocks can be considered as a miss or hit opportunity. Companies issuing them might grow into large organizations and give a higher yield than average returns.
Some of these stocks can turn out to be multi-bagger stocks. This means some penny stocks can generate returns of more than 100 per cent against their investment amount. And, if some penny stocks give a return ten times its investment value then it is considered a ten-bagger.
Hence, if investors could include these stocks in their portfolio, these stocks could exponentially increase their returns and have a large chance to outperform mid-cap and large-cap funds.
To find out the best penny stocks which have the potential to be multi-baggers, investors need to go through thorough stock market research.
Let’s understand it with an example:
Suppose Mr X invested Rs 10,000 in penny stocks of ABC Pvt company. Each unit cost is Rs 10. The company did well in the market as its performance rose by a huge margin and its stock value reached up to Rs 100. If Mr.X sold its 1000 shares at Rs 1,00,000. I.e (10,000/10=1000, Rs 1000*100=Rs 1,00,000) hence this stock gains ten times a return. Such stocks are considered as a ten-bagger stock.
As we said above, these stocks are cheaper than other stocks and hence you can easily do share trading and invest in them without taking any risk of losing huge amounts of your investment finances.
Therefore, if they fill a small portion of penny stocks into their portfolio, chances are investors creating room for better investment options while minimizing the risk associated with it.
As these stocks heavily depend on the market condition for the growth in their stock’s intrinsic value, they are associated with high risk.
Apart from the fundamental risks linked with the stock market, these stocks also come with other types of risks which can’t be neglected.
The companies that mostly issue penny stocks are startups. These companies freshly come into the stock market for fundraising and needless to say, there are a lot of insecurities associated with these stocks such as lack of information on the past performance, financial soundness, growth prospects of such stocks.
Therefore, it is suggested to do complete research before investing in penny stocks. Also, there are several stock market courses available on the internet. You can take a wide range of knowledge from there.
If you look at the financial history, you might have heard that penny stock scams are very common in the international stock market. One such popular method is pump and dump. Under the pump and dump method, investors with an intention of scamming, purchase a huge amount of penny stocks. Such hype attracts new investors to purchase these stocks.
Once the company realizes that they have enough buyers who have invested in their stocks, the speculator immediately reduces the value of these stocks resulting in the losses of new investors.
Apart from investing in penny stocks, investors nowadays seek out new investment options that are suited to their portfolio and risk appetite both.
Mutual funds are one of the best investment options investors are gaining interest in. Mutual funds are a professionally managed investment scheme that pools money from numerous investors and invests this money in securities such as stocks, bonds, and debts.
While penny stocks seem an attractive investment option for many investors because of their low pricing, they do carry risks like other equity shares. The price movement of such stocks heavily depends on the market condition which makes penny stocks highly risky. However, these risks can be mitigated if you do complete research about these stocks before investing.
Well, if you need the right investment advice regarding any stocks and mutual funds, you may consider Swastika as the best stock trading platform for beginners and experienced both. The stock broking company comes with user-friendly online trading platforms at affordable brokerage rates.
In recent years, there has been a significant shift in the investment habits of women in India. With greater financial independence and increasing awareness of the importance of wealth creation, more women are actively participating in the world of investments. The traditional approach of relying solely on savings or leaving financial decisions to male family members is rapidly evolving. Today, women are making informed choices, diversifying their portfolios, and seeking financial growth through various investment avenues.
The Rise of Financial Independence Among Women
As women continue to break barriers in professional fields and achieve higher levels of education, they are also gaining more control over their finances. This has resulted in a growing trend of women taking the reins of their own investment decisions. Unlike in the past, where savings accounts and fixed deposits were the preferred options, today’s women are more inclined towards mutual funds, stocks, real estate, and even cryptocurrencies.
Financial independence is no longer just about earning; it’s about making that money grow. Many women are now recognizing the power of compound interest and the need to invest in high-return instruments to secure their future. This shift is a result of increased access to financial education, digital tools, and platforms that empower women to manage their investments with ease.
Women are More Risk-Aware
One of the defining characteristics of women investors is their approach to risk. While women are often labeled as conservative investors, recent trends suggest that they are not afraid to take calculated risks. However, women tend to be more risk-aware, which means they conduct thorough research and are more cautious about where they put their money.
Rather than chasing short-term gains, many women prefer long-term investments that offer steady returns. This makes them more likely to invest in balanced portfolios that combine equity, debt, and other assets. The growing interest in Systematic Investment Plans (SIPs) and other diversified instruments highlights how women are keen on creating a stable financial foundation for themselves and their families.
Investment in Mutual Funds and Stocks
Mutual funds have become one of the top choices for women investors due to their ability to diversify risk and provide professional management. SIPs, in particular, have gained immense popularity as they allow women to invest small amounts regularly, reducing the burden of lump-sum investments. Moreover, with the rise of online platforms, investing in mutual funds has become convenient and accessible.
The stock market, once considered a male-dominated space, is now seeing increased participation from women. With a better understanding of market trends and investment strategies, more women are trading in stocks, either directly or through investment advisors. This change indicates a growing confidence in their ability to navigate the complexities of the stock market and generate returns.
Real Estate and Gold: Traditional Yet Evolving Choices
Real estate and gold have always been popular investment choices among women, and this trend continues to hold. However, the way women approach these investments has evolved. Rather than merely buying gold in the form of jewelry, more women are now investing in gold exchange-traded funds (ETFs) and sovereign gold bonds, which provide better returns and liquidity.
In terms of real estate, women are making informed decisions by investing in properties that offer long-term value appreciation. Government initiatives like tax benefits for women homebuyers and lower stamp duties in certain states have also encouraged more women to invest in real estate.
The Role of Digital Platforms in Women’s Investments
The digital revolution has played a crucial role in transforming the investment habits of women in India. With the advent of mobile apps, online trading platforms, and robo-advisors, women now have access to real-time financial information, investment tools, and expert advice at their fingertips. This has not only simplified the investment process but has also empowered women to take charge of their financial journeys.
Financial literacy programs targeting women have also contributed to this shift. With more resources available online, women are educating themselves about different investment options, the importance of diversification, and the need for financial planning. This has led to a rise in women making informed decisions and exploring investment options beyond traditional methods.
Challenges and the Way Forward
Despite the progress, certain challenges remain. Many women still face societal pressures and stereotypes that discourage them from taking financial risks or managing their own investments. Additionally, the gender pay gap and career breaks due to family responsibilities can limit their ability to invest as aggressively as their male counterparts.
However, as more women continue to challenge these norms and seek financial independence, the landscape is gradually changing. Employers, financial institutions, and policymakers can further support this trend by offering women-centric investment products, financial education programs, and flexible work arrangements that allow them to build their wealth without compromising on other responsibilities.
Conclusion
The changing investment habits of women in India reflect a broader shift towards financial independence and empowerment. As more women take control of their financial futures, the focus has shifted from simply saving money to growing wealth through informed investment decisions. With the rise of digital platforms, financial literacy, and a variety of investment options, women are now more confident and equipped to make smart financial choices. This growing trend not only benefits individual women but also contributes to the overall economic development of the country.
Investing in stocks can be considered a quite challenging task. This is because a lot of information investors need to gather before starting investing in the stock market. Maybe building a portfolio or the selection of the right stock, share market trading is not as easy as it seems to be.
Selection of the right stock with the right amount can often turn out to be a successful deal as it allows investors to earn a huge profit in the long run. Buying and selling of stocks are equally important as buying, selling of the stocks at the appropriate time can be equally rewarding which in turn make investors earn maximum returns from it.
Investment in the stock market is a sensitive task as investing in the wrong stock can lead to huge losses which may take years to break even.
Do remember that the stock market is full of volatility, uncertainty. Therefore, one should be clear about all the aspects of a stock market. The stock market is not for the people who fear the ups and downs of the stock market. It is for those who have patience and can take risks in the long term.
There is massive information available in the market. Anyone who wants to invest in the stock market, can study stock and decide between buying and selling.
It is extremely important to identify the change in volume of the stock. If you notice any sudden fluctuation in stock’s volume and its price, then it should be on your radar.
If you identify any stock price’s movement such as an upward or downward trend, you need to clearly monitor the stock’s fluctuations and observe the pattern. However, it is also said that don’t go with the first day rise in the stock price as the first-day rise may be a fluke.
It is important to identify the trend first. Many analysts take an aggressive approach by monitoring the stocks if there is an increase in the stock price for 2 consecutive days.
In case, where you are sure of stock performance like IRCTC, then you can consider a sharp dig as a stock trading opportunity. Besides, considering delivery-based volume, you should consider a minimum of 5 days average volume.
Also, you can do one thing, you should filter out stocks that are thinly traded i.e traded volume for comparison purposes less than 5 lakhs.
Analysts said that it would be feasible to invest in such stocks that you may gain interest in. This is because investing in such stocks will help you to get better-informed decisions.
Also, industry-specific stocks will make you more interested and therefore you know all the information associated with the stocks which in turn makes it easy for you to identify the fundamentals of a stock.
Hence, it is advisable to invest in stocks that you are familiar with.
Circuit stocks are the ones that are hitting upper or lower circuits frequently. Research analysts believe that circuit stocks should be avoided as much as you can.
It is a misconception that you will earn a huge profit in upper circuit stocks. A majority of small investors made huge mistakes by putting their money in the upper circuit stocks. If you want to extract money from such stocks, then you should be a seasoned trader and know how to play in the stock market.
You may observe the stocks with a huge number of buyers. Such stocks may have only buyers or sellers. This doesn't mean that the stocks have a huge demand. It might be an operator driven stock. Therefore, it is advisable to avoid such stocks.
Before picking any stock, it is important to go through the valuation and price of the stock. If the company is trading at PE multiples of less than 20, then the stocks are considered as an undervalued stock and hence a good buy.
On the flip side, a company trading at PE multiples of more than 20, then it is considered overvalued and hence good to sell.
Mainly companies survive by selling their products and services in the market. If the sales or margin of the company are increasing at a good pace, then there is a good potential rise in the price of a stock in future. It is suggested to always look for the margins of the company. Don’t forget to compare the cost of goods sold and other expenses for the increase in sales.
Nowadays, technical indicators have been gaining huge popularity. They are basically in the form of charts that predict the future moment of the stock based on the current stock price.
The technical indicators take into account the volume traded. The information provided by technical indicators can be quite valuable while considering buying and selling of shares.
It is good to go through the financial reports of the company before making any decision regarding stock. Financial reports enable investors to analyze the performance of a company. Besides you can also compare the stock’s profitability in the past five years. Also, look for cash pay-outs for stock investors in the form of dividends. The above points help you to decide whether to buy or sell the stocks.
Any upcoming event regarding a company can lead to several triggers in the price movements of a stock. It is important to analyze and knows the events as it helps you to determine the trend of the stock such as which stock going forward.
Therefore, buying and selling of stock can be initiated based on such events, for which you need a trusted stock broking firm with a solid track record and a dedicated team of researchers and analysts.
In the past few years, SME IPO has turned out to be the most crucial and dazzling sector of the Indian economy. This is because the employment intensity of SMEs is four times greater than the large-scale enterprise which in turn makes SME the biggest contributor to the GDP of India.
Also, the government has recognized the role and importance of SMEs in their economy. The biggest challenge faced by these enterprises is access to capital. To overcome this, numerous capital markets have recognized the need for a separate exchange for the SME sector.
Keeping this in mind, the BSE and NSE have launched their own platform for small and medium enterprises to list on BSE and NSE. Thus, BSE SME and NSE Emerge are a new source for SME IPOs and provide a listing opportunity to the SMEs with minimum compliances and cost compared to the main board.
An SME exchange is a stock trading platform for small and medium enterprises. The SME trading platform was first set up by SEBI in 2008. However, the major step has been taken by the prime minister’s task force in January 2010 on Micro, Small and Medium Enterprises, which recommended setting up of SME exchange to promote inflow of equity capital in this sector.
Before we dig deep into this, let's understand the meaning of SME IPO, its procedures and its benefits.
SME BSE is a trading platform where only SMEs trade their shares in this exchange trading platform. So, if a company wants to get listed on the exchange, they have to come out with their IPO.
The eligibility criteria for SME IPO is somewhat different from the main board of NSE, BSE. Here are the requirements for the BSE SME IPO.
SME listing not only provides benefits to the company but also benefits its investors, both existing and proposed such as providing an exit route to private equity investors as well as liquidity to the ESOP holding employees.
SME capital market allows many companies to scale up their business. As of now, the BSE SME platform of over 300 companies is listed on it and NSE Emerge has over 180 companies listed on it.
SME listing provides relaxed listing norms and minimal cost of listing as compared to the main exchange which in turn is ideal for the SMEs to raise capital and meet their growth requirement.
BSE and NSE are the platforms where companies list their securities which are also known as the mainboard. SME IPO is the main platform IPOs have been taking place for years. This is because NSE and BSE follow strict eligibility criteria that must be adhered to list on their platform.
BSE SME and NSE Emerge on the other hand, have no so strict eligibility criteria. In addition to this, other requirements for IPO listing such as the requirement of track record, reporting requirements, time frame for listing are quite easy for SME, making a listing on an SME platform quite easier.
SEBI is all set to allow startups to list on the SME platform. Also, the companies seek an opportunity to raise capital as the SME platform gives special relaxations to startups in terms of net worth and profitability. The primary reason for giving special relaxation is to provide capital raising opportunities to SMEs who cannot list on the mainboard because of the huge compliance norms.
To successfully list on SME platform, one should have a demat account with the top stock broker like Swastika who offers promising IPO services to its clients.
There are numerous small firms that seek capital growth. Since they have limited options to raise capital, providing an SME platform for them would be a positive step for the investors who seek growth for their company. With proper relaxation, the SME platform would come out as a primary option for startups to raise capital.
Redington is a leading distributor of technology & communication products and provider of services and solutions across 37 emerging markets, Redington will get a positive push government is preparing to unveil another incentive to drive local manufacturing of IT products including tablets, laptops and servers, three sources closely involved in the drafting of the plan told Reuters.
The new performance-linked incentive (PLI) scheme, which offers cash-back to manufacturers for exports, will have a budget of up to 70 billion rupees ($964.5 million) over five years. It's expected to be launched by the end of February.
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