Rakesh Jhunjhunwala, a veteran investor, stock market expert, and legendary figure of Dalal Street in India, passed away on Sunday, August 14 from a cardiac arrest.
Today as we look at his journey we find that Rakesh Jhunjhunwala was the only man aside from Warren Buffet who has amassed a billion dollars through stock market investing and that too in a developing market.
Rakesh Jhunjhunwala began his stock market journey with Rs. 5,000, which, in the middle of the 1980s, was $500. He converted that amount over the course of the following 35 years to over $4 billion or Rs 30,000 crore. If you look at the compounding ratio, it has been increased in dollar terms by over 50%.
Rakesh Jhunjhunwala was born on July 5, 1960. He was a son of an income tax officer and began experimenting with stocks while still a college student. His father, who was engaged in the stock market and frequently discussed stocks with friends, was a source of inspiration to him. He also picked up his first lesson from his father, who advised him to follow the news and explained that events throughout the world affect prices. The youngster told his father that he planned to invest as he grew more and more captivated by the stock market. He chose to seek a degree in CA after his father advised him to invest his own money rather than borrow from friends and relatives.
He invested under both his own name and that of his wife, Rekha Jhunjhunwala, who is a licensed chartered accountant.
An Interesting Fact about Rakesh Jhunjhunwala was also a movie producer. Movies like "English-Vinglish," "Shamitabh," and "Ki and Ka" were produced by him. He was the chairman of Hungama Digital media entertainment Pvt Ltd.
The investor was seen as a vibrant, forward-thinking, and relentless Indian optimist who will be remembered in the investment community for his trading and investment skills, which helped many people to believe in the India narrative and provided them with many valuable insights.
The prime minister launched the primary international bullion exchange in India at the nearby Gujarat International Finance Tec-City (GIFT City).
According to this arrangement, the NSE-IFSC order matching and trading platform are going to be used for all orders on Nifty derivatives placed by members of Singapore Exchange Limited (SGX).
In addition to accelerating the financialization of gold in India, this exchange would offer effective price discovery with the assurance of ethical sourcing and quality.
Foreign investors who don't want to register and trade in India sometimes buy Nifty contracts on the Singapore Exchange. At its peak, trading on the Nifty made up the maximum amount as 10% of the revenues at the Singapore Stock Exchange. Amid worries that foreign traders may migrate their trading activities to Singapore, India's stock exchanges agreed in early 2018 to cease granting licenses for her indexes to foreign bourses starting in August 2019.
SGX pulled NSE into a legal battle once the contract was terminated. The dispute was ultimately arbitrated. After deciding to sign a connection agreement at Gift City, the exchanges opted to finish the arbitration in September 2020.
India is the second-largest consumer of gold worldwide. the most important importer of precious metals, it brought in 1,069 tonnes of gold in 2021, a rise of 430 tonnes from the year before. the state has strict regulations for gold.
Only organizations and banks that the Federal Reserve Bank of India (RBI) has approved are now allowed to import gold.
The term "bullion" refers to high purity physical sorts of gold and silver that are frequently kept as bars, ingots, or coins. Bullion is usually held by central banks as reserves or owned by institutional investors, and it's even regarded as legal money. The Bullion Spot Delivery Contract and Bullion Depository Receipt (BDR) with underlying Bullion as a Financial Product and related services as Financial Services were announced by the govt in August 2020.
Through authorized banks and organizations, the import of gold was liberalized within the 1990s. then, accredited jewelers in India were for the primary time permitted to import gold directly through IIBX. This conversation is critical in and of itself. Jewelers must be longtime trading member's clients or trade partners in order to qualify for this.
IIBX are going to be led by Ashok Gautama as MD and CEO. before taking over in February 2022, he was employed with IDBI Bank. He formerly had an edge in the State Bank of India (SBI).
This exchange will standardize the financialization of bullion in India, bring transparency to the price-setting mechanism, and work as a standard-setting tool for the bullion's quality (IFSCA).
This would make it possible for authorized jewelers to import gold directly through IIBX, which is governed by the International Financial Services Centres Authority (IFSCA).
NRIs and institutions also will be eligible to participate in the exchange after registering with the International Financial Services Centre Association.
Gold 1 kg with a purity of 995 and gold 100 g with a purity of 999 is going to be traded in the early stages with a settlement period of T+0. The exchange is additionally anticipated to increase the settlement duration to T+2 days.
The establishment of IIBX is anticipated to empower India to require its proper place in the global bullion market and provide services to the global value chain. This affirms the govt of India's commitment to giving India the ability to influence global bullion prices as a major consumer.
कीमती धातुओं के भाव में आक्रामक मौद्रिक नीति के चलते लगातार बिकवाली का दबाव बना हुआ है। पिछले सप्ताह सोने के भाव 50000 प्रति दस ग्राम के भीतर कारोबार करते नज़र आये जबकि प्रति किलो चांदी के भाव 52000 रुपये के निचले स्तरों को छू चुके है। अमेरिकी डॉलर, जो सोने के विपरीत दिशा में चलता है, में फेड प्रमुख जेरोम पॉवेल के बयान के बाद से ही तेज़ी जारी है और यह 110 के स्तरों के करीब पहुंच गया है जिससे सोने के भाव में दबाव बना हुआ है। अमेरिका से जारी होने वाली रोज़गार रिपोर्ट के आंकड़े लगातार बेहतर रहे है जिससे आर्थिक मंदी का डर कम हुआ है और इससे फेड को कठोर नीति कायम रखने में आसानी होगी। फेड श्रम से सम्बंधित आकड़ो पर कड़ी नजर रख रहा है ताकि यह पता लगाया जा सके कि नौकरी बाजार उच्च ब्याज दरों के प्रति कितनी सहनशीलता रखता है। पिछले सप्ताह जारी पैरोल के आकड़ो में नॉन फार्म एम्प्लॉयमेंट चेंज के आंकड़े अनुमान से बेहतर दर्ज किये गए जबकि बेरोज़गारी दर में बढ़ोतरी हुई है, लेकिन यह दर 4 प्रतिशत के नीचे रही जिसको फेड पूर्ण रोज़गार की स्थिति मानता है। अमेरिकी बेंचमार्क ट्रेज़री यील्ड चार साल के ऊपरी स्तरों पर पहुंच चुकी है जिससे डॉलर इंडेक्स को सपोर्ट मिला हुआ है और नॉन यील्डिंग सोने-चांदी की कीमतों में दबाव बन रहा है। ग्लोबल मैन्युफैक्चरिंग आकड़े कमजोर रहने के कारण चांदी के भाव में बिकवाली का दबाव है। इस सप्ताह गुरुवार को यूरोपियन सेंट्रल बैंक की मौद्रिक नीति कीमती धातुओं के लिए महत्वपूर्ण रहेंगी।
इस सप्ताह कीमती धातुए में मंदी रहने की सम्भवना है। अक्टूबर वायदा सोने की कीमतों में 49000 रुपये पर सपोर्ट है और 51000 रुपये पर प्रतिरोध है। दिसंबर वायदा चांदी में 51000 रुपये पर सपोर्ट और 54500 रुपये पर प्रतिरोध है।
The earning season begins, two to three weeks after a fiscal quarter ends. It also extends for roughly a month beyond the end of the quarter.
As per Financial Year
Period - Quarter. - Declare Month
Apr to Jun - Q1 - results will be in July/Aug
July to Sep - Q2 - results will be in Oct/Nov
Oct to Dec - Q3 - results will be in Jan/Feb
Jan to Mar - Q4 - results will be in Apr/May
Investors and other stakeholders have access to information during the earnings season that they may use to create their own views and take independent actions. When utilizing the fundamental analysis to assess their present or future holdings, traders place a high value on financial performance.
Equity research experts provide forecasts and research reports using earnings data and other relevant information, which investors use as a standard to evaluate the performance of the firms.
Results will be released publicly every three months. 95% of businesses follow the April through March calendar year. For some businesses, the calendar year runs from January to December.
Using the insights obtained from earnings reports, one technique is to trade stocks based on performance. A company's stock price is expected to increase if it reports positive earnings. A company's stock price is likely to decrease if it reports negative earnings.
Before any deductions, this is the entire money earned by a company for the most recent quarter or reporting period.
Also called net profits, net income is the sum of sales and revenue fewer costs. The final figure shows a corporation's net profit or loss, or how successful or lucrative a company has been.
This indicator displays the amount of profit a company produces for each unit of revenue it brings in. Earnings before Interest, Tax, Depreciation and Amortization criteria are referred to as EBITDA. In other words, you may use EBITDA to assess a company's profitability based on its revenue and outgoing costs.
Using the data to guide your investment choices is another way to profit from earnings reports. When a company issues a negative earnings report, if an investor is bullish on that stock for the long term, it may be time to buy more.
Many investors react hastily to these stories, but the best course of action may be to simply hold. Depending on the sector, many firms recover over time, thus an investor may lose money if they sell their shares immediately after a negative quarter.
Another tactic is to buy lesser-known equities in the same sector where other companies are reporting positive quarterly results. This can indicate that the sector is expanding and that an investor would stand to gain from the ensuing wave of profitable stocks.
Prior to the earnings season, some investors may decide whether to buy or sell. This implies that they will take a risk on whether the company's earnings report will turn out positively or negatively and will buy or sell stocks suitably.
The Company’s profit is divided by the number of outstanding shares of its common stock to calculate earnings per share. You may determine from this computation how much money a corporation produces for each share of its stock.
From the success of certain industries to a number of basic elements, the earnings season's impact on the world economy is influenced by a variety of variables. While bellwether companies exceeding or meeting expectations might be a sign of a healthy corporate climate, there isn't always a clear correlation between the stock market and the economy because of the many diverse ways in which they interact.
India was the eleventh-largest economy ten years ago, while the UK was the fifth-largest. Based on data on GDP provided by the International Monetary Fund. India surpass the UK in dollar terms annually this year, only behind the US, China, Japan, and Germany. In the final three months of 2021, India surpassed the UK to become the fifth-largest economy.
The IMF’s World Economic Outlook database shows India overtaking the U.K. in dollar terms on an annual basis this year with a GDP of $3.53 trillion compared to the U.K.’s $3.38 trillion.
According to adjusted figures and the dollar exchange rate on the last day of the relevant quarter, the Indian economy was worth $854.7 billion in nominal cash terms in the three months ending in March. The United Kingdom was $816 billion on the same basis. a country with the highest inflation rate in four decades and growing recession risk, which the Bank of England predicts might persist well into 2024.
According to reports, the UK's ranking decline is the result of the nation's rising cost of living. For the first time since 1982, the nation saw double-digit consumer price inflation last month. With the pound losing 8% versus the rupee this year, sterling has underperformed the dollar relative to the Indian currency. In the second quarter, UK GDP increased by just 1% in real terms; after accounting for inflation, it decreased by 0.1%.
Indian equities have recently had a global-beating recovery, moving their weighting into second place in the MSCI Emerging Markets Index, only behind China's.
official figures revealed that India's gross domestic product (GDP) increased 13.5% in the June 2022 quarter (Q1FY23), as opposed to the 20.1% growth recorded in the first quarter of 2021–2022. According to an official statement, "Real GDP or gross domestic product (GDP) is anticipated to hit a level of Rs 36.85 lakh crore in Q1 2022-23, as against Rs 32.46 lakh crore in Q1 2021-22, indicating a rise of 13.5 percent as opposed to 20.1 percent in Q1 2021-22."According to National Statistical Office (NSO) figures, the country's gross value added (GVA), which is GDP less net product taxes and shows supply growth, increased by 12.7% between April and June 2022.
Reduced corporate taxes, the production-linked incentive (PLI) program, and India as a potential supply chain beneficiary all helped to stimulate and maintain domestic demand, particularly for investments.
India's GDP grew by 13.5% in the first quarter of FY23. India's GDP is probably going to develop the quickest in the current fiscal year at this rate. Nirmala Sitharaman, the Union Finance Minister, has disclosed that India's Gross Domestic Product (GDP) growth will continue to grow at 7.4% in FY 2022–23 and in FY24 as well.
However, economists worry that the prospect of a global recession and rising interest rates might stifle growth in the ensuing quarters.
A variable monsoon is also expected to have an impact on rural demand and agricultural growth. Economists are also said to be concerned about the manufacturing sector's decreasing growth rate of 4.8% and the fact that imports are outpacing exports.
India is expected to benefit in the coming days as China's aspirations for fresh investments slow down.
Despite its great economic progress, the country nonetheless has its share of obstacles. According to the World Bank, access to development and new opportunities has been unequal and varies by area.
Furthermore, India is home to 25% of the world's poor. According to the UN, just 39% of its rural populations have access to sanitary facilities, and nearly half of the population still defecates in the open.
Although India overtook the UK there is a disparity in per capita income between the two countries caused by the size of India's population India has 1.3 billion inhabitants, which is three times the combined populations of the UK, France, Italy, and Brazil, vs the UK which has a population of 068 bn. Thus, our per capita GDP was $2,500 as opposed to $47,000. We still have much to go.
The semiconductor industry was put into the unexpected limelight in 2021 when chip shortages initially forced the shutdown of vehicle production lines. The focus grew when certain high-tech and consumer electronics businesses started to report chip shortages or expressed worries about supply chains.
Everyone can clearly see that we live in a world dominated by semiconductors, the small chips that power several automotive features, including blind-spot detection, seat adjustment, and interior Illumination.
Relations between Washington and Beijing are strained as a result of the rising tensions brought on by the visit of Nancy Pelosi, the speaker of the US House of Representatives.
Some scholars claim that if China conquers Taiwan, the former will gain more independence to expand its strength throughout the western Pacific.
Furthermore, China may put the American military outposts in jeopardy if this takeover occurs, especially those on the island regions.
China, however, disputes any bad intentions and insists that its goals are wholly benign. But President Xi Jinping of China declared that "reunification with Taiwan must be realized" and that if necessary, the force will be used to achieve this goal.
Simply put, the dragon views the island country as a renegade province that the latter seeks to subdue.
Washington has a history of strategic ambiguity, to the point where it might use force to intervene if China invaded Taiwan. The One-China policy, which recognizes only one Chinese government, based in Beijing, and has formal links with Beijing rather than Taipei, is adhered to by this country in its official capacity. It has, however, also promised to give Taiwan protective armaments and emphasized that any invasion by China would be of great concern.
A significant portion of Taiwan's IT sector is made up of the semiconductor industry, which includes IC manufacture, design, and packing. Taiwan plays a significant role in the semiconductor industry's worldwide supply chain.
Additionally, its contract manufacturers represented more than 60% of the entire income generated by semiconductors worldwide in 2021.
Around 20% of the world's semiconductor market, or US$115 billion, was accounted for by Taiwan. Taiwanese businesses control 50% of the global market in some industries, such as foundry operations, with Taiwan Semiconductor Manufacturing Company (TSMC) dominating the foundry industry.
Taiwan manufactures essential semiconductors and electronic equipment and controls 10% of the world's shipping container capacity, holding a crucial role in the global supply chain.
Technology companies from Taiwan control the majority of the world's capacity for producing semiconductors, including cutting-edge and effective chips. The largest contract chip manufacturer in the world, Taiwan Semiconductor Manufacturing Co Ltd (TSMC), is now investing in a new $12 billion facility in Arizona.
India has its own limitations, therefore it won't participate more politically in Taiwan unless the situation is dire. Since the beginning, India has adhered to a "One China" policy; yet, India must recognize that Taiwan is the main center of the American Indo-Pacific strategy. In the bigger picture of limiting China, it does play a significant supporting role.
Our links now extend beyond commerce to include educational possibilities for Indians who wish to learn Chinese and follow Chinese trends.
The COVID-19 epidemic and China's zero-COVID policy have already caused unprecedented amounts of disruption in supply chains throughout the world since 2020.
Due to trade and supply route restrictions brought on by the Russia-Ukraine war, shipping prices have increased.
A blockage or delay in semiconductor chip exports might be one of the numerous effects of a confrontation between China and Taiwan. This would have an impact on several global businesses, including manufacturing, internet communications technology (ICT), and research and development.
The Taiwan Strait is one of the busiest shipping lanes in the world, helping the transport of technology and natural gas supplies to international markets.
A butterfly effect might result in hyperinflation, job losses when factories stop operating, and recessionary economies.
As we observe our nation's 75th Independence Day, let's review how freedom has changed through time.
For India's savings, a route to financial independence has been gradually carved out thanks to the efforts of governments, regulators, and financial institutions. This route capitalizes on the country's economic expansion using share markets, mutual funds, and other investment avenues that let investors reap from it.
Certain reasons have led to a rise in the importance of financial independence. Every middle-class individual should take into consideration this idea because it is no longer optional and almost a necessity.
To become financially free, one must plan ahead and handle their existing finances. It's crucial to organize your expenses and debts since doing so will allow you to start saving and stop depending on a set monthly salary.
The road to financial independence begins there. The sooner you start saving, the longer you save will eventually benefit you in long term. It makes no difference where you start, but it is more crucial that you begin making plans for the future.
Just as important as choosing a financial objective is understanding one's risk tolerance level. One may easily narrow down the most worthwhile investment possibilities if they are aware of their level of risk tolerance. Financial decisions may become murky if one is unable to identify their personal risk tolerance.
Most people will accumulate wealth more reliably by combining tiny sums of money with time and the power of compound interest.
Choosing a variety of investments that are geared toward attaining your goals and objectives at an investment risk level that you are comfortable with is the key to building an investment portfolio. The selection of a particular investment is the second most important component after asset allocation.
Regular and systematic investing is required if you want to get the desired outcomes. A powerful feature for goal planning is a systematic investment plan (SIP). You only need to choose one of the top and most suitable mutual fund programs to SIP into.
Searching for the best mutual funds for a systematic investment plan in India? Fulfill your financial goals now with Swastika.
Equity investments have rewarded investors by increasing their money in a fairly short amount of time when compared to other investment alternatives. By starting early, and making investments in the right stocks, one might strive to save enough money to achieve financial independence at a young age.
You must quit living in debt if you want to become financially independent. Make sure to minimize or settle your outstanding bills as soon as you can. Avoid taking out loans or using credit cards frequently to meet your immediate needs because doing so might harm your financial stability
The "4 percent rule" is a retirement rule of thumb that states that an investor can safely withdraw 4 percent, adjusted for inflation, from a balanced portfolio of stocks and bonds each year and be reasonably certain that the money will continue to grow and won't run out. This is how financially independent people who live off their portfolio income operate.
Having the right mindset is essential to achieve financial freedom. Making secure and wise investments is therefore essential to financial independence since it allows you to gradually increase your wealth. Investors who desire predictable capital growth, however, have had sleepless nights due to fluctuating stock indices and monetary policy changes. Fixed-income assets are therefore ideal for investors looking for guaranteed returns.
भू-राजनितिक तनाव बढ़ने के कारण सोने में सुरक्षित मांग बढ़ने लगी है। पिछले सप्ताह घरेलु वायदा सोना तेज़ रहा और भाव 52500 रुपये प्रति दस ग्राम के स्तरों को छू गए जबकि चांदी की कीमते सीमित दायरे में रहते हुए 58800 रुपये प्रति किलो के ऊपरी स्तरों को छू गए। धीमी होती हुई ग्लोबल अर्थव्यवस्था और अमेरिकी डॉलर इंडेक्स मे दबाव सोने और चांदी के भाव को सपोर्ट कर रहा है। डॉलर की नरमी के चलते औद्योगिक धातुओं के लिए पिछले सप्ताह अच्छा रहा लेकिन चीन और यूरोज़ोन के कमजोर मैन्युफैक्चरिंग आकड़ो से सुस्त मांग के संकेतो से सप्ताह के अंत तक इनमे दबाव बनता दिखा। हालांकि, डॉलर की तुलना में रूपया पिछले दो सप्ताह से मजबूत रहा है जिससे कीमती धातुओं की बढ़त सीमित रही। भारतीय रिज़र्व बैंक द्वारा भी शुक्रवार को ब्याज दरे 0.50 प्रतिशत बढ़ा दी गई है जिससे रूपया मजबूत हुआ है। जबकि कॉमेक्स वायदा में सोना 1800 डॉलर प्रति औंस के स्तरों को पार कर गए। दुनिया भर से निराशाजनक आर्थिक संकेतो की बढ़ती संख्या ने आने वाली मंदी पर चिंताओं को बढ़ा दिया है। हालांकि, अमेरिका से जारी होने वाले पैरोल के आंकड़े मजबूत दर्ज किये गए है जिससे ऊपरी स्तरों पर कीमती धातुओं के भाव में दबाव भी बना है। सेफ हैवन मांग बढ़ने के पीछे चीन और ताईवान के बीच बढ़ रहा तनाव है जिसमे मिलिट्री ड्रिलिंग में मिसाइल दागने के बाद सोने में तेज़ी देखने को मिली है।
कीमती धातुओं के भाव इस सप्ताह तेज़ी में रहने की सम्भावना है। अक्टूबर वायदा सोने की कीमतों में 51300 रुपये पर सपोर्ट है और 52500 रुपये पर प्रतिरोध है। सितम्बर वायदा चांदी में 55500 रुपये पर सपोर्ट और 59500 रुपये पर प्रतिरोध है।
Investment risks can't be avoided while one can reduce these risks to manage their portfolio. It's important to address the portfolio wisely as this will ensure the investor's financial future security.
Now the point is every investment carries some risk feature with it, but a portfolio takes a lot of risks with it that depend on the number of assets managed in the portfolio.
So to overcome the overall risks, we will discuss the strategies to reduce risks in the investment portfolio.
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1. Identify Risk Tolerance Capacity
While investing the hard-earned money in the stock market, every investor has some risk-bearing capacity.
This risk tolerance capacity depends from person to person, and to determine risk factors, one can consider the age, the number of dependents, financial status etc.
Usually, people avoid such risk-taking capacity and invest more than their estimated risk to generate high returns, but this affects their portfolio when markets face downtime.
So understand your risk tolerance before investing, and this practice generates a good risk-return value that ultimately helps maintain the investment portfolio.
2. Maintain Liquidity
A financial emergency is unpredictable, i.e. it can occur anytime, so one needs to take back the investments, and it might be possible for the market facing downtime.
So to reduce this risk, try to maintain enough liquidity. Adding a few liquid assets in the portfolio lets your other investments generate long-term results.
One can keep the emergency funds aside that will equal the amount required for 3-4 months of expenses. In this way, the urgent need for cash won't affect the portfolio, and you need not compromise your long-term investments.
3. Asset Allocation
Asset allocation involves investing in different asset classes to reduce the risks involved with investment and generate high returns. Other asset classes are equity, debt, mutual funds, gold, real estate etc.
To implement an asset allocation strategy, mix investing means investing in the combination of asset classes which are inversely correlated, i.e. equity and gold, equity and debt etc.
If equity stock under performs, such gold stock balances the returns by overperforming, or vice-versa can be possible.
With this strategy, one can easily reduce the risks in the investment portfolio and secure higher revenue.
4. Diversify Investment
Once you get the combination of asset classes per your investment goals, diversify those asset classes to reduce the risks involved in investing.
This strategy helps reduce the overall risk of an investment portfolio as diversifying the investment within the same asset class divides the risks among multiple investments of that class.
For instance, you are investing in equity mutual funds and diversifying this investment among the large-cap, small-cap and mid-cap funds.
If any of the funds generate low returns, this loss is limited to that investment only because other assets are not affected.
Also Read: Portfolio Diversification: A Beginner’s Guide for Asset Allocation & More
5. Diversification across sectors
In the market, every sector is in a different phase; while a few sectors are quite risky and possess optimal returns, there are sectors which offer high returns at low risks.
So diversify your investments among multiple sectors such that if one sector is not doing well, you have an option that delivers better returns simultaneously.
For instance, The technology sector is usually in the mode of amazing growth, but this also faces downtime. At the same time, the utility sector stays consistent in terms of returns even aftermarket collapse.
6. Focus On Time in the Market
Most of the time, investors take quick decisions to buy particular stocks as their price continuously rises in the least amount of time
But without even checking the stock's past performance, investing can increase the risk. So instead of timing, the market investors should focus on the long run to stay with investments in the long term.
Because small fluctuations do not impact the portfolio much, therefore reduce the risk in the investment portfolio.
7. Invest in Index Funds
Investors should add a few index funds to their investment portfolio to reduce the risk. However, these funds are quite expensive but perform better than other funds.
Index funds produce good returns and lower expense ratios than other active funds.
Also Read: Tips and Tricks for Every New Stock Investor
8. Monitor Your Investment
Investing is not just enough. Being an investor, you always want to stay in the market for the long term, but that doesn't mean letting go of what's happening with your investments.
One should monitor the investments in a particular period. Reviewing the portfolio's performance shows the poor-performing assets and thus minimizes the risk involved.
You can track the investments for a year or every six months to help diversify the investments in the asset classes. Ultimately analyzing the performance reduces the risk in the investment portfolio.
9. Invest in Blue Chip Stocks
Investing in blue chips offers you several benefits as with the help of it, you can reduce liquidity risk to a greater extent. Hence, investors are advised to check the credit rating of debt securities to avoid any type of risks associated with it.
Although almost all blue-chip stocks involve some type of risk, investing in blue chip stocks minimizes your risks to a greater extent.
10. Monitor Regularly
We need to monitor our portfolio regularly even if you are a long-term investor. If you want to be a successful investor, you need to regularly an eye on your portfolio’s performance.
With every investment, you make some risks involved in it. To get high returns with your investments, follow all these strategies to reduce risk in the investment portfolio. This information aims to help you achieve your financial goals through continuous growth in your investments.
For an investor, investing in such stocks that produce high stock market trading returns is ideal. But, on the other hand, investors look for those stocks that are relatively in demand as per market perspective and trends.
One such trending stock is electric vehicle stock. As the natural energy resources are limited and the usage is twice the availability, we are looking for an alternative. The automobile sector is now shifting towards electric vehicles.
With this adoption of electric vehicles, the stock prices of EV stocks are rising.
So let's see the list of the best electric vehicle stocks to buy in India in 2022.
The electric vehicle sector is so huge that it is not limited to manufacturers only; instead, it is divided into four segments.
Based on four categories of electric vehicles, we are listing the best electric vehicle stocks to buy in India in 2022.
Tata Motors
With the assistance of partners like Tata Chemicals for batteries, Tata Steel for body structures, and Tata ELXSI for software, it is one of the greatest electric vehicle stock businesses in India.
Tata Motors will have a significant amount of room to grow in the near future. Tata Motors' closing price, in the last few months, was around Rs. 400.
Maruti Suzuki
Maruti Suzuki is the top brand for entry-level vehicles that are affordable. The business holds the majority of the market share because it is the oldest one.
The only thing is that other businesses have made huge progress in the EV market in a short span of time, but Maruti Suzuki has not done yet.
Sooner or later, the company will introduce an electric vehicle to the market. In the previous months, the share price reached a close of Rs. 7000 (approx).
Mahindra & Mahindra
Aside from the partnership with Reliance Industries, Mahindra & Mahindra is aiming to increase the number of electric vehicles in its lineup.
The company plans to introduce 16 electrified vehicles by 2027, spanning the SUV and light commercial vehicle classes.
Additionally, it intends to spend nearly Rs 3,000 crore over the next three years on the electric vehicle market. The stock price of this company varies from Rs. 800-850.
Hero MotoCorp Limited
As the market is focused on four wheelers electric vehicles, Hero decided to focus on the two-wheeler electric vehicle segment. Hero already established itself with its two-wheeler edition including pleasure, splendor etc.
So it better understands the two-wheeler market in India as it is affordable for the common man too. Talking about the share price of Hero MotoCorp it ranges between Rs. 2300- 2400.
Tata ELXSI Limited
Tata ELXSI is one of the leading software companies known for its contribution to the automobile industry. The company provide new technology software and design for electric vehicle.
It is also estimated that ELXSI will eventually license this specially created stock software to other auto part manufacturers. The share price of this ELXSI varies between Rs. 8000 - 8700.
Motherson Sumi Systems Limited
One of India's leading suppliers of automotive components is Motherson Sumi. Due to its immense production capacity, the company has previously acquired several small-scale auto parts makers and started producing parts, particularly for electric vehicles.
As electric vehicle parts are different from normal cars, Motherson Sumi is estimated to grow in the near future and provide services to different businesses. The share price for this company is around Rs. 140.
Exide
One of the oldest and leading players in the list of automobile battery manufacturers is Exide.
Exide use to manufacture lead-ion batteries for typical vehicles but planning to shift to lithium-ion-based batteries for the upcoming electric vehicles. The share price of Exide industries varies between Rs. 150-170.
Tata Chemicals
Tata chemicals have a unique vision of developing an ecosystem to generate batteries by collecting all the raw materials required to make batteries.
With this vision, the company want to fabricate the batteries in their manufacturing plants and use the old batteries in the recycling process. The share price of TATA chemicals is nearly Rs. 1050.
Power Grid Corporation of India Limited
Power Grid Corporation is a government-owned firm that provides high-voltage supply and grid management to businesses including telecommunications.
The company is likely to install charging stations around the nation. The corporation going to participate in future government contracts and deals with the label of state control. The share price varies between Rs. 200 - 250.
Tata Power Company Limited
As a provider of consumer energy, TATA Power is a well-established organization. With the rapid growth in the number of EV owners in India, TATA Power and TATA Motors have joined hands to build electric vehicle battery charging and switching stations around the nation.
The company has started installing private charging stations at customers' apartments, registered car service centres, and fast charging stations at numerous public parking spaces like shopping areas.
The share price of TATA Power was estimated to be around Rs. 270.
Here in this list of best electric vehicle stocks to buy in India in 2022 we have covered all the segments of electric vehicle stocks.
So with this proper classification of EV stocks, investors get to know all the sectors of the automobile industry in a very clear way.
While entering the market, every investor wishes to invest in stocks that provide high returns. With this intention, they invest in different types of stocks that generate high returns.
Although there are different types of stocks available in the market, selecting the right one is still a challenging job.
Dividend stocks and growth stocks are a big fuss these days. Individuals prefer dividend stocks while some people prefer growth stocks over any other stocks.
But dividend stocks vs growth stocks: which one will you choose? This has been a point of debate until now.
To get detailed information about dividend and growth stocks, feel free to contact us - at 0120 4400700
Let's first understand what dividends are. So it is the portion of the firm's overall profits that it chooses to hand out to shareholders rather than make an investment.
Dividends are usually paid to investors as compensation for their capital contributions to the organization.
Stocks that consistently pay dividends to their stakeholders are referred to as dividend stocks.
If investing in dividend stocks, check the two factors related to dividend stocks: dividend ratio and dividend yield.
The total number of dividends given to stakeholders with respect to the company's annual income is known as the dividend payout ratio. The dividend yield reveals the annual dividend payout of a corporation with respect to its stock price.
A few examples of dividend stocks include:
A growth stock is, generally, a share in any firm that is likely to grow faster than the market as a whole.
Growth stocks do not share a portion of their revenue with investors, in contrast to dividend stocks.
Because, in the case of growth stocks, they frequently reinvest their profits into the company. This stimulates the increase in these stocks.
To check whether the stock is a growth stock or not, analyze the metric Pay-to-earning ratio (PE ratio).
Based on previous or estimated results, a PE ratio reveals the price that investors are willing to pay for a stock today.
Growth stocks might be viewed as expensive since they are considered to have significant growth potential.
A few examples of growth stocks:
As we have gone through both the stocks' dividends and growth, here comes the main question: which will you choose among these two stocks?
The answer to this question depends on the investor's time horizon, risk preference, and the kind of return that he is looking for.
Investors who want to build wealth over a longer period of time should put their money into growth in order to stay invested and generate longer-term rewards.
You won't get an immediate payout or any interest on an undergrowth investment.
On the other hand, dividend investments are for the types of investors who are searching for a stable and consistent cash flow throughout the years. However, your investment will grow with time.
To choose between these two stocks, the following factors can be considered:
As compared to dividend stocks, growth stocks are riskier because to sell the stocks you want their price to increase so that you earn more profit by selling them and for this, you hold them for the long term but these always seek unpredictability.
Whereas dividend stocks are less risky than growth stocks. Firms that pay dividends have a strong track record, which means that their payments are consistent and dependable.
However, dividend payments are typically less than capital gains, and by distributing their profits rather than reinvesting them, these businesses limit the possibility of stock price increasing.
Also Read: Which are the Best Dividend-Paying Stocks in India?
Investing in growth stocks is a more long-term approach. The ideal time to sell a stock is after holding it for a number of months or even years while it appreciates. However, it might produce higher returns.
Dividend stock is a short-term investment strategy. You can simply move in and out of dividend stocks because you are not trading them for their long-term financial gains.
The returns from dividend stocks come in regular installments. Most businesses pay dividends on a quarterly basis, as was already mentioned.
A regular formula is generally used by most businesses to structure their dividend payments, if not to make similar dividend payments.
As a result, dividends are a suitable choice for investors that require a consistent and dependable cash flow.
Growth stocks offer returns that are very irregular. Although you can decide on a standard cost at which to sell your stocks, the market is always erratic.
Your stock may not even reach its target cost, and you can't even predict when it will hit the target. Growth stocks are therefore a reasonable choice for investors who can maintain their money invested in the market while waiting for sales.
Here we have covered the two most important stocks of the market - dividend stocks and growth stocks. Both stocks work for their investors differently. Dividends behave as per the dividend yield of the firm while growth stocks depend on past revenues and upcoming predictions.
Forex trading is one of the most popular ways to trade currencies. Currency transactions are executed on a 24-hour basis and are processed by a number of banks and other financial institutions.
The main advantage of forex trading is that it allows investors to profit from changes in market prices as well as from interest rates. Another advantage is that there are no taxes or commissions paid on profits made by forex traders.
Price Action Trading
Price action trading is a strategy that involves using price movements to predict the direction of an asset’s movement. When combined with other strategies, this can make you more profitable.
Traders use charts and indicators to monitor market activity and trade accordingly. They typically use a combination of technical analysis, fundamental analysis, and chart patterns to make their trading decisions.
It is a method of trading based on a set of rules that are used to determine when to buy or sell. The trader will look for specific patterns in the price action that indicate an upcoming trend change, or even reversal.
Price action traders typically use daily charts on forex currency pairs in order to spot potential trends before they hit the board. They may also use open interest levels as an indicator of future price movements.
Range Trading Strategy
Range trading strategy in forex trading is a method of trading that involves the use of two or more price extremes.
The trader must be aware that there are several different types of range trading strategies, but we will focus on the most commonly used one – the “Range Reversal” strategy.
This type of range trading strategy is based on the idea that there is more profit to be made when you trade at one end of a range than when you trade at the other end. This means that your position should open near its entry point, and then move towards the opposite side of the range.
Trend Trading Strategy
A trend is a continuing movement in the direction of a major price or value. In technical analysis, trends are identified by examining whether prices are moving up, down or sideways.
A trend is considered to be strong if it has lasted for at least two weeks, and the majority of traders feel that it will continue for several more weeks. The trend can be either long-term or short term and most trends last between 3-7 days.
Trends are formed by taking advantage of support and resistance levels. Support levels are where most buyers are located and resistance levels are where most sellers are located.
When you identify a support or resistance level, you should wait until after the market has tested it before you enter your trade. If you enter your trade too early, you may get stopped out of your trade before it can work for you.
If you do not enter your trade until after the market has tested these levels, then you will have more room for error because there will be less chance of getting stopped out due to price action happening too soon (for example: if there is a previous low near this level followed by an upside breakout from this level).
Position Trading Strategy in Forex Trading
Position trading is a method of trading where you have predetermined entry and exit points, but your primary objective is to take profits and close the trade. This type of strategy can be used with any market, but most traders use it with the forex market because it’s easy to identify entry and exit points.
In position trading, you set up a fixed amount of cash and buy or sell a fixed amount of currency at a specific price.
For example, if you want to trade a particular currency pair, you might buy 100 shares of that currency pair at $1 USD per share. If the price goes above $1 USD per share, then you are done because your investment will double in value (assuming there were no other expenses).
If the price goes below $1 USD per share, then your investment will lose value by 100% (assuming there were no other expenses).
This type of system works well for people who do not have much experience with Forex trading and want to make money quickly without risking too much money.
Day Trading Strategies in Forex Trading
Day trading is a trading strategy in which the trader makes trades for a whole day or multiple days, rather than for just one day.
The trader may not necessarily be able to hold long positions overnight, but as long as he/she can close out his/her positions before the markets close for the day, then he/she has made good money on the forex market.
Day traders are usually looking to make profits from short-term price movements in the market. Since the markets are open all day, there is no reason why you cannot enter into a position and exit it before the market closes.
Day traders use technical indicators to help them determine when it is best to enter into positions and exit them at specific times. This allows them to take advantage of sudden price changes in the market without having to wait for an entire day's worth of price action before taking any action.
Scalping in Forex Trading
Scalping is a strategy that involves trading a small number of shares or contracts. It is also called micro-trading. Scalping is one of the simplest and most profitable strategies used by traders in Forex.
The main reason for this is that scalpers can make more money than other types of traders.
The Forex scalping strategy involves placing trades in small portions that have much less risk than a larger trade.
Traders who use this strategy believe that they can make more profit by using smaller trades than others who do not use the scalping strategy.
The goal of scalping is to make profits on your trades by taking advantage of price slippage and volatility, which are associated with large price movements in the market.
You can also use this strategy if you want to enter a position at a specific time or time frame, but do not want to risk too much money on it.
Swing Trading in Forex Trading
Swing trading is a trading strategy that involves buying and selling the same currency pair (or group of currencies) regularly over a short period of time. This can be done on a daily, weekly or monthly basis.
Swing traders will typically be looking for a specific price point they think they can profit from. They may also look at different time frames, such as weekly, monthly or even yearly.
The idea behind swing trading is that it allows you to take advantage of price fluctuations in Forex markets without worrying too much about the big picture like scalping or day trading.
This means that you don't have to trade every single day or even every week. You can wait until certain positions move in your favor, then take advantage of them quickly before they revert back to their original price points again.
Forex trading involves a lot of risks. As with any form of investment, losses can occur. You should never trade with more money than you can afford to lose. Remember that your capital is at risk no matter what the broker or platform you are using.
Forex trading is a very complicated field, which makes the opportunity to make money easy for many investors.
However, it is important to be able to understand how the markets work before you get started. This will help you avoid making poor decisions that could lead you into financial trouble.
Investing in the stock market is a quite a challenging job, which can give you a huge amount of money in some cases, but if done improperly, it can lead to a loss of your entire investment.
The stock market requires a lot of learning about the market and how it works.
The stock market has many ups and downs and you need to have patience because even if you have a good idea about the stock, there are other factors that may affect its price.
Hence, many investors put their hard-earned money into penny stocks thinking that it may give them bountiful profits. However, this is not the case.
Now, moving into our topic which is penny stocks vs value stocks, both are risky investments but they are completely different from each other, to know more about the difference. We need to know how value and penny stocks work.
Penny stocks are shares of a company that trade for a very low price. This can be because the market doesn't know the company well enough, or because the company has low enough growth potential to be priced at this level.
Penny stock trading is not necessarily a scam, but it can lead to problems if you're not careful.
A value stock is a stock that has a low price-earnings (P/E) ratio relative to the market value of the company's equity. The lower the P/E ratio, the more attractive it is.
Value investors try to make money by buying shares of undervalued stocks. They do this by analyzing the company's financial statements and comparing them to similar companies' earnings reports.
If there are big differences between what's happening inside a business and what's happening in its stock price, value investors may want to buy those stocks.
Penny stocks are considered to be very risky to invest in because of the low price of these stocks. These stocks do not have any form of stability and they are prone to fluctuations in their prices.
This can make them lose their value very quickly and make you lose your money.
Penny stocks are considered to be high-risk investments as they do not have any form of stability, unlike regular stocks where one can see how the company is doing and if it is going to perform better or worse in future.
This makes penny stocks very risky for investors as they cannot predict what will happen to them in future.
Value stocks are stocks that have low price-to-earnings (P/E) ratios, high book value and low price-to-book value ratios. These stocks are often referred to as growth at a reasonable price (GARP) stocks.
Value investors believe in investing in companies that offer a good return on investment without having to pay too much for it. They believe in buying low and selling high, as opposed to buying high and selling even higher.
Investors try to identify undervalued companies with good growth prospects and sell them before they get overvalued or become too expensive.
Penny stocks are risky and often used in stock market scams. Instead of risking your hard-earned money in penny stocks, invest in value stocks.
Value stocks are those that have a proven track record of delivering good returns. The best value stocks are ones with a proven track record of delivering good returns for their shareholders.
The most important thing about value investing is that you need to invest in companies with strong balance sheets and high-quality assets (such as cash).
These assets will be required to pay off debts and other obligations of the company such as interest payments and tax payments.
Penny stocks have no such requirement and can be traded without any capital requirements. The risk involved in trading penny stocks is very high because the price of these stocks can rise or fall dramatically within seconds or minutes.
This makes it difficult for the average investor to decipher what is fake news and what isn’t because they don’t have enough time to analyze the information before making an investment decision.
People invest their money in different financial instruments so as to get good returns from them. To accomplish investing goals, they seek the best investment schemes which give the best interest rates in a fixed time. If you are an investment lover, who would like to enhance your wealth, there are certain things you would need to consider.
Before starting your investment journey, the primary thing you need to do is to find out whether you have enough funds or not. As it is important to save for the future, you need to make sure that your presentation must be secure before putting any money into a financial instrument.
Emergency money would be the second important thing you need to plan for. As 99 per cent of investment instruments come with a fixed lock-in period, the money you put into these funds cannot be withdrawn until the lock-in period gets ended.
Hence, it is suggested to keep some emergency funds as they may come into use if any immediate requirement comes like medical and other expenses.
Debt clearance is another important step you need to make before making an investment. If you get stuck somewhere in the debt, starting an investment might involve risks. If you have zero debt and also have emergency funds, you are all set to start your investment journey. Below are some of the investment options you can use for getting a better return on investment:
Mutual funds are the best investment schemes as many Indian investors put their money for better results. In mutual funds, your investments are diversified into different asset classes which makes it one of the safest investment instruments to date.
Investment in mutual funds comprises several benefits. For instance, it is less risky than the stock market.
Secondly, your money will be handled by a highly skilled or experienced fund manager who handles investment portfolios way better than regular investors.
When you invest in the stock market, as long as a firm is listed on the stock exchange, you can contribute to its capital.
A company’s equity can be acquired by purchasing its shares, and the price of those shares will change based on how well the firm is performing financially. If the company from which the equity was purchased has financial success, investors stand to gain.
Here, the important thing to ponder is that getting outstanding results is possible only if the investor is extra careful while selecting any stock.
Good stocks with prices are the safer options for beginners as they prevent them from huge losses as the market fluctuates.
SIPs are easy convenient investment options investors are looking for. SIP is a systematic investment plan where individuals put their pre-determined money on a monthly basis. The mode of payment chosen by the investor is completely based on his/her preference.
The set amount will automatically be deducted from the investor's connected account and invested in a certain mutual fund scheme. Additional units of the scheme will be purchased and added to the investor's mutual fund account with each debit of the account.
SIPs are regarded as the best savings vehicles since they not only offer favorable returns but also contribute to the development of saving habits in investors.
India Post Office Scheme, the organization in charge of managing the nation's postal system, has made these deposit options available to investors. This investment choice was originally made available to encourage people to develop a lifelong habit of disciplined saving while also offering investment opportunities to support financial planning.
The simplicity of enrollment or application is what distinguishes these schemes as one of the best investing possibilities. By going to the nearest post office branch, you can make an investment in these savings plans.
In other words, bonds are fixed-income investment choices that serve as collateral for a loan that a shareholder makes to a governmental or corporate borrower.
The fact that the terms for fixed interest payment, loan principal, and tenure are all covered in the bond specifics makes them one of the top investment plans in India.
As a result, it guarantees both the security of your money and an additional return.
Additionally, the relationship between bond prices and the current interest rates is inverse. It implies that these prices decrease as interest rates rise.
A government-initiated investment option called the National Pension Scheme aims to protect a citizen's financial future after retirement. If you wish to save for retirement and have a low or no risk tolerance, consider NPS to be the greatest investment plan in India.
In accordance with your preferences, you may invest in government bonds, stocks, or other alternative investment opportunities under this programme.
NPS is not only among the best investment choices, but it is also the safest way to accumulate savings and investment returns for retirement. With a minimum investment of Rs. 500 and an interest rate of 8–10%, you can begin investing in the National Pension Scheme.
Public Provident Fund, a government-backed investment scheme, offers you risk-free returns, making it one of the greatest investing options. Every quarter, the government revises and pays the interest.
Although PPFs have a 15-year maturity period, you can begin partial withdrawals of your money after six years have passed.
However, you can also take out loans using your PPF balance as collateral. Since the principal amount, interest earned, and maturity amount is all eligible for tax savings, it falls under the EEE category of tax savings.
PPF is thus among the greatest possible investment solutions. You are eligible for a tax deduction for your contribution to the PPF account under Section 80C of the IT Act of 1961.
यूएस फेड के नरम रुख के कारण कीमती धातुओं में तेजी आई और ब्याज दर को उम्मीदों के अनुरूप रखा गया। फेड मीटिंग के बाद यूएस बेंचमार्क ट्रेजरी यील्ड 2.7 प्रतिशत के करीब फिसल गया।
अमेरिका से जारी अग्रिम जीडीपी डेटा ने अर्थव्यवस्था में मंदी का संकेत दिया क्योंकि डेटा पूर्वानुमान से कमजोर रहा।
गुरुवार को जारी अमेरिकी सकल घरेलू उत्पाद (जीडीपी) दूसरी तिमाही में -0.9 प्रतिशत रहा, जिसने कीमती धातुओं में सेफ हेवेन के चलते तेज़ी देखने को मिली। अमेरिकी फेडरल रिजर्व ने बुधवार को ब्याज दरों को 75 आधार अंकों से बढ़ाकर 2.5 प्रतिशत कर दिया, जैसा कि बाजार को उम्मीद थी।
फेड प्रमुख जेरोम पॉवेल ने अपनी प्रेस कॉन्फ्रेंस में कहा कि सितंबर की बैठक में अंतिम दर वृद्धि का निर्णय आने वाले आर्थिक आंकड़ों द्वारा निर्धारित किया जाएगा।
हालांकि, पॉवेल ने आर्थिक मंदी आने की सम्भवना को मना किया और दर वृद्धि की स्थिति की समीक्षा के लिए जगह छोड़ी है जिससे स्पष्ट होता है की अगले साल ब्याज दरों में बढ़ोतरी नहीं होगी, इससे डॉलर और अमेरिकी ट्रेज़री यील्ड में गिरावट आई है और सोना-चांदी के भाव तेज़ हुए।
यूरोप और एशिया से सोने-चांदी की हाज़िर मांग मजबूत रहने से भी कीमती धातुओं के भाव को सपोर्ट मिला है। डॉलर की तुलना में रुपये में पिछले सप्ताह सुधार दर्ज किया गया है जिससे कीमती धातुओं में ऊपरी स्तरों पर मुनाफा वसूली भी देखि गई। पिछले सप्ताह सोने के भाव 1 प्रतिशत जबकि चांदी के भाव 5 प्रतिशत तक तेज़ हुए है।
कीमती धातुओं के भाव इस सप्ताह सीमित दायरे में रहने की सम्भावना है। अक्टूबर वायदा सोने की कीमतों में 51000 रुपये पर सपोर्ट है और 51800 रुपये पर प्रतिरोध है। सितम्बर वायदा चांदी में 55500 रुपये पर सपोर्ट और 58500 रुपये पर प्रतिरोध है।
With the growing popularity of options trading in India, more people have started to join this exciting world of options trading.
It is a form of derivative contract which gives you an opportunity to buy or sell an underlying asset at a certain price at a set date in the future.
Options can be used as hedges against stock positions or as speculative plays. Options can also be used for income generation by selling short-term option positions with borrowed funds.
To get detailed information about options trading, talk to our experts - 0120 4400700
A bull call spread is an options strategy that consists of purchasing a call option and selling another call option of the same type with a higher strike price.
The difference between the two strikes is the net credit received when selling the options, which is used to purchase more options with a lower strike price.
The maximum profit potential of this strategy occurs when both calls are at or near their respective expiration dates and both expire in the money.
A bull put spread is an options strategy that consists of selling one put option and buying another put option of the same type with a lower strike price.
The difference between these two strikes is the net debit paid when buying the options, which is used to sell more options with a higher strike price.
The maximum profit potential on this strategy occurs when both puts are at or near their respective expiration dates and both expire in the money.
Also Read: What is a lot size in options trading?
The call ratio back spread is a bullish strategy that consists of purchasing a call and selling a put with the same strike price, expiration date and underlying asset.
This strategy can be used to generate a credit in the event that the underlying stock moves higher and moves beyond the breakeven point of the spread.
In this case, if you are long one call and short one put, then you would be making money on both sides of the trade if your goal is to generate a credit.
The synthetic call is another bullish strategy that involves selling a call with one month or less until expiry, while simultaneously buying an option which has no expiration date.
The synthetic call gives you the right to buy the stock at a certain price before it reaches its lowest price during that month. You can use this strategy to generate income while waiting for your stock to reach its lowest price.
A bear call spread is a combination of two options with a strike price that is lower than the underlying stock price and one option that has a higher strike price than the stock.
The difference between the two options is called the vertical spread, and it costs less to buy than it does to sell because both options have the same expiration date.
The call with the lower strike price has greater value if you want to sell your shares early in order to profit from the rally.
The call with the higher strike price has greater value if you want to buy shares at a lower price and then sell them at a higher one.
Also Read - How to Choose Stocks for Options Trading?
A bear put spread is a bullish strategy that involves selling one put, and buying a second put at a lower strike price. It works if the underlying stock falls in price, which would result in the second put becoming worthless.
In most cases, the maximum profit on this strategy is limited to the difference between the two strike prices of your puts. This strategy is most effective when you have a strong opinion on the direction of an asset's price movement.
The strip option is a vertical spread with a short call, short put and long position. The idea behind this strategy is to profit from volatility by selling the underlying asset at a strike price that is lower than the current market price. As a result, you will profit if the underlying asset falls below your strike price.
The strategy is based on the concept of time decay, which states that as time passes, options lose value until they expire worthlessly.
So by selling an option that has a very low strike price, you can generate profits as time goes on until expiration or until you decide to sell your position. You can also use this strategy to increase leverage in your portfolio.
A synthetic put is a combination of a call and put option. The trader buys one put and sells the other or vice versa.
Synthetic puts can be used as bearish options strategies. By selling a put and simultaneously buying another, you are essentially creating an unlimited risk on your long position.
This strategy is best used when the underlying asset has recently depreciated significantly in price, but there is still potential for it to decline even further.
Straddles are a combination of options that have an expiration date far in the future and one that is closer to expiration.
The closest expiration date is known as the straddle strike price, which is the highest price paid for an option contract. The most distant expiration date is known as the straddle exercise price, which is the lowest price paid for an option contract.
Long Straddles are combinations of options with strikes above and below the current stock price. The long straddle strategy involves buying one call and one put with different expiration dates on a single underlying security.
This will give you a credit spread if your stock goes up, or a debit spread if it goes down. You can vary this type of strategy by buying a higher or lower strike call or put.
The long butterfly is a bullish strategy that involves selling one call and buying two puts. It is designed to profit from a rise in the underlying stock's price. The long butterfly must be used with caution because it increases the potential for loss.
The iron condor is a bearish strategy that involves selling one call and buying two puts. It is designed to profit from a decline in the underlying stock's price. The iron condor must be used with caution because it increases the potential for loss. Start Options Trading today.
Options trading strategies are a great way to make money in the markets. While there are many options that can be used for trading, it is important to choose the right strategy for your needs.
Banking sector is one of the most secure, productive, and popular industries to invest in. Bank stocks created a huge market in the last few years but yes there is no denying that it sinks during the pandemic. Again it set a comeback with the rapid growth because without the banking industry's contribution, the economy cannot expand. So if planning for banking equities to invest in soon, then you can check this list of the best bank stocks to buy in 2022:
HDFC is one of the greatest large-cap banking stocks in India in terms of market capitalization. In its sector, HDFC Bank has the highest earnings per share at Rs. 57.9. This bank is at the top of our list of the best bank stocks to purchase because of its excellent performance over the years.
With a market capitalization of $7,59,180.39, HDFC Bank is now the largest bank in India. The stock's closing price was $1,351.10, while its all-time high and low prices were $1,725.00 and 16.36.
HDFC Bank has consistently delivered outstanding results, increasing strongly through numerous economic cycles, and has long been regarded as a gold standard for excellence.
Given the unprecedented effects of the COVID-19 scenario on numerous firms, it is important to take a deeper look at how its unsecured portfolio performance may be affected.
To combat the situation, HDFC Bank adopted a practical strategy and, starting in FY2019–20, moved its attention to the wholesale banking sector, helping to offset the decline in some retail segments brought on by a general slowdown in consumption.
In order to grow regularly in a prudent way, HDFC Bank pursued a cautious strategy by balancing between both business categories corporate and retail.
In addition to this, since the RBI's limits on banks' digital initiatives are no longer in effect, a rise in retail loans might be anticipated, driven by the bank's aggressiveness to make up lost ground.
ICICI is one of the greatest bank stocks to purchase as it is a large-cap banking stock which gives you promising earnings per share.
This bank's market capitalization is listed as 5,07,245.27 crore. The stock's closing price is 720, and its all-time high is 867.00, while its all-time low is 11.41.
Compared to the established companies in the public sector, ICICI bank shows great interest in investment in technology.
In terms of asset size, ICICI Bank is the second largest private sector bank in India and is recognized as one of the D-SIBs (Domestic Systemically Important Banks) in the nation.
As of March 31, 2022, the bank reported a 19.2% Capital Adequacy Ratio (CAR) in accordance with Basel III.
ICICI has consistently maintained a good CASA mix of 45.2 per cent as of March 31, 2021, because of the private lender's strong retail franchise, which helps mobilize low-cost deposits.
Kotak Mahindra Bank Ltd functions fairly well in all areas of banking, including investment banking. Thus, it maintains a strong share for investors year after year.
Kotak Mahindra Bank also came to light as a participant who adopted a sensible and cautious strategy, focusing primarily on well-regarded clients and industries.
This contributed to the bank's historically low levels of bad loan formation (Net NPA at 0.64 per cent). This banking behemoth has grown profits at a CAGR of 19.6% over the course of five years and advances at a CAGR of 7.2% over the course of the same period.
The bank's deposit business is still granular and strong, with good deposit growth and an industry-leading CASA ratio of 60.7 per cent in Q4 FY22.
Axis Bank is one of the best private banks in India with its network of over 4500+ locations.
Axis Bank generates approx. 4 % net interest margin and has a capital adequacy ratio of nearly 19.31 percent.
The private sector participant has consistently kept healthy capitalization levels, showing a solid capacity to raise capital to support growth and maintain a buffer over minimal regulatory requirements, as well as a strong capacity to raise resources through deposits and bonds.
As of March 31, 2022, Axis Bank's total deposits increased by 17.7 per cent. As of March 31, 2021, the bank's CASA deposit base made up a substantial 44.92 per cent of all deposits.
It has been able to control the growth of bad loans as of the quarter that ended on March 31, 2022, and it has reported a Gross NPA ratio of 2.8 per cent and a Net NPA ratio of 0.70 percent.
Axis bank has a 75 per cent provision coverage ratio. Its capital adequacy ratio is an impressive 15.4%.
Axis Bank currently has the biggest exposure, consisting of 37% from home loans, 11% from LAP, and 11% from auto loans. When COVID-19 is in effect, the lender may be in danger due to their exposure to NBFCs and HFCs.
Indusind Bank is a large-cap company with one of the finest banking companies in terms of earnings per share. It is at the top of our list of the finest bank stocks to purchase.
This bank has a market capitalization of 70,801.17 crore rupees. The stock's ending price was 913.20, while its all-time high and low prices, respectively, were 2,038.00 and 8.50.
The Bank is able to advance significantly in the field of car financing because of its strong subject expertise and coverage.
Over years, it has been able to control and reduce its problematic loans while consistently growing its profitability and net interest income by double digits.
Under the leadership of recently appointed MD & CEO Mr Sumant Kathpalia, IndusInd Bank is concentrating on growing retail lending, lowering reliance on huge deposits from governments & corporations, and ensuring sustainable liquidity.
At 41.8 per cent, the bank's CASA ratio ranks among the best among private sector banks in India. As a result of the COVID-19 pandemic, the bank is better able to handle shocks thanks to its provision coverage ratio of 72.3%.
After the Yes Bank scandal, Indusind Bank saw big deposits from governments and corporations move to larger banks.
Despite this, it was still able to attract the migrated amounts back, citing a 15% YoY increase in the deposit base. The bank has been able to keep its NIMs at 4.2 per cent while slowing the rate of NPA generation (i.e. NNPA at 0.64 per cent).
So here we have covered all the best bank stocks to buy in 2022, few facts and figures might not be the same every time. Hence it's advised to do your stock market research about present bank stocks' prices before investing in any bank stocks.
Gold has surpassed its physiological level of 50,000 on the MCX where this sell-off may extend towards the level of 49,000. Despite the fact that the dollar index has fallen, gold prices have not risen much.
On the COMEX, gold has also surpassed the $1700 barrier, and is presently trading around its earlier support level of $1675, from which a previous surge to the level of $2080, which was the highest level of the year, was recorded.
Recent dollar strength and gold weakness may be directly linked to the Federal Reserve's aggressive monetary policy, which has seen interest rates climb at every FOMC meeting since March of this year. This corresponds to the Federal Reserve's first interest rate increase, which happened in March as well.
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भारत में सोने पर बेसिक इम्पोर्ट ड्यूटी को 7.5 प्रतिशत से बढ़ाकर 12.5 प्रतिशत कर दिया गया है जिससे पिछले सप्ताह घरेलु वायदा बाजार में सोने के भाव, सप्ताह भर गिरावट रहने के बावजूद 3 प्रतिशत बढ़ गए। जबकि कॉमेक्स में सोने के भाव 1800 डॉलर के निचले स्तरों को तोड़ चुके है और सप्ताह में कीमते 2 प्रतिशत टूट कर 1794 डॉलर प्रति औंस पर पहुंच गई है।
अमेरिकी बेंचमार्क ट्रेज़री यील्ड 3 प्रतिशत पर है जबकि अमेरिकी डॉलर इंडेक्स में मजबूती बने रहने से अंतर्राष्ट्रीय बाजार में सोने के भाव में दबाव बना हुआ है। भारत में 5 प्रतिशत इम्पोर्ट ड्यूटी बढ़ने से कीमते सप्ताह में 2.5 प्रतिशत तेज़ हो कर 51800 रुपये प्रति दस ग्राम के स्तरों पर रही। औद्योगिक मांग घटने से चांदी के भाव कॉमेक्स में पिछले सप्ताह 6 प्रतिशत टूट कर 19.73 डॉलर पर रहे जबकि घरेलु बाजार में सितम्बर वायदा चांदी के भाव सप्ताह में 3 प्रतिशत टूटे कर 58000 प्रति किलो के निचले स्तरों पर है। सरकार द्वारा जारी आंकड़ों के अनुसार, भारत का व्यापार घाटा सालाना 6.53 अरब डॉलर से बढ़कर 24.29 अरब डॉलर हो गया है। चालू वित्त वर्ष के पहले दो महीनों के दौरान व्यापार घाटा बढ़कर 44.69 अरब डॉलर रहा, जो पिछले साल की समान अवधि में 21.82 अरब डॉलर था।
बढ़ते व्यापार घाटे और विदेशी फंडों के निरंतर देश से बहार जाने के कारण अमेरिकी डॉलर के मुकाबले रुपया 79 के निचले स्तरों पर लुढ़क गया है। भारत सोने का दूसरा सबसे बड़ा आयातक है जिसका व्यापार घाटे में बड़ा हिस्सा है। मई 2021 में 677 मिलियन अमरीकी डॉलर के मुकाबले, सोने का आयात बढ़कर 6 बिलियन अमरीकी डॉलर हो गया है। वर्ल्ड गोल्ड काउंसिल के अनुसार, भारत में सोने का आधिकारिक आयात मई में 98 टन पर रहा, जो इस साल अप्रैल में 27 टन और मई 2021 में 11.4 टन पर था।
इस सप्ताह अमेरिका से जारी होने वाले, फेड मीटिंग मिनट्स, एडीपी नॉन फार्म एम्प्लॉयमेंट चेंज और पैरोल के आंकड़े कीमती धातुओं के लिए महत्वपूर्ण रहेंगे।
अगस्त वायदा सोने की कीमतों में 50000 रुपये पर सपोर्ट है और 52200 रुपये पर प्रतिरोध है। सितम्बर वायदा चांदी में 56000 रुपये पर सपोर्ट और 60000 रुपये पर प्रतिरोध है।
कीमती धातुओं के भाव में लगातार दूसरे सप्ताह भी गिरावट रही। सोने और चांदी के भाव में दबाव, अमेरिकी फेड द्वारा बड़ी ब्याज दर बढ़ोतरी की सम्भावना के चलते बना हुआ है।
पिछले सप्ताह फेड प्रमुख जेरोम पॉवेल ने कहा कि केंद्रीय बैंक की मुद्रास्फीति पर लड़ाई "बिना शर्त" है और इसको नियंत्रित करने के लिए हर संभव प्रयास करेंगे साथ ही कहा की 1 प्रतिशत ब्याज दर वृद्धि की संभावना पर भी विचार करेंगे।अमेरिकी डॉलर स्थिर बना हुआ है, और उम्मीदें अब जुलाई में 75-आधार-अंकों की बढ़ोतरी की ओर झुकी हुई हैं। बढ़ती मुद्रास्फीति पर अंकुश लगाने के उद्देश्य से दुनिया भर में सख्त केंद्रीय बैंक नीतियों के प्रभाव से निवेशक सतर्क है।
सोने के भाव 51300 रुपये से लेकर 50100 रुपये प्रति दस ग्राम के सीमित दायरे में बने हुए है। जबकि औद्योगिक धातुओं में बिकवाली का दबाव रहने के कारण चांदी में भी बिकवाली का दबाव बढ़ गया है। तेज़ी से बढ़ती हुई ब्याज दरों में वृद्धि आर्थिक मंदी की चिंताओं को बढ़ा रही है जिससे दुनिया भर के शेयर बाज़ारो में दबाव बना हुआ है। निवेशक सुरक्षित निवेश के अन्य विकल्प जैसे डॉलर की और रुख कर रहे है। पिछले सप्ताह अमेरिका, यूरोप और जापान से जारी फ़्लैश मैन्युफैक्चरिंग के आंकड़े अनुमान से कमजोर रहे जो आर्थिक मंदी का संकेत देते है।
अगस्त वायदा सोने की कीमतों में 50000 रुपये पर सपोर्ट है और 51500 रुपये पर प्रतिरोध है। जुलाई वायदा चांदी में 58000 रुपये पर सपोर्ट और 62000 रुपये पर प्रतिरोध है।
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