%20(2).png)
Indian equity markets began the session on a slightly negative note today, 27 December 2025, reflecting a cautious investor mood as the year draws to a close. Traders and investors are taking a careful approach amid mixed domestic and global signals.
The near-flat opening of Nifty 50 indicates a balanced approach between buying interest and profit booking, while Bank Nifty shows mild weakness due to selective selling in financial stocks.
At Swastika Investmart, investors gain access to:
This empowers both long-term investors and active traders to stay informed and confident.
As of 27 December 2025, Indian markets have opened marginally lower, signaling cautious sentiment ahead of year-end. Traders should monitor key support and resistance levels, while long-term investors can continue to focus on disciplined investing and portfolio management.
👉 Open your trading account today with Swastika Investmart
Smart planning leads to smarter investing.
Equity trading, also known as stock trading, is the buying and selling of shares of companies in the stock market. It is a fundamental way for investors to grow their wealth and participate in the financial markets. Let's break down the basics of equity trading in simple language.
Equities, or stocks, represent ownership in a company. When you buy a share of a company, you own a small part of that company. This ownership entitles you to a portion of the company's profits, which can be paid out as dividends. Additionally, if the company grows and becomes more valuable, the value of your shares can increase, allowing you to sell them for a profit.
Equity trading involves buying and selling these shares on the stock market. The stock market is a platform where investors can trade stocks with each other. The two main types of stock markets are:
Equity trading typically follows these steps:
There are different ways to trade equities, including:
The difference between the bid and ask price is called the spread.
Equity trading is an essential part of the financial markets, offering opportunities for wealth creation and participation in a company's growth. By understanding the basics of how equity trading works, the types of trading, and the associated risks and rewards, you can make decisions and develop effective trading strategies. Whether you are a beginner or an experienced trader, staying informed and disciplined is key to success in the stock market.
Stay updated with Swastika for more market insights. JOIN NOW!
In a call option, you have the right, but not the obligation, to buy a stock for a set price (strike price) by a certain date (expiry date). There are different types of call options, and today we'll focus on In-the-Money (ITM) call options. Let's break it down:
Let's say the current price (spot price) of a stock is ₹8,300
These terms help investors decide which options to buy or sell.
Example: Current stock price is ₹1000, and the call option strike price is ₹900. This option is ITM because ₹1000 (current price) - ₹900 (strike price) = ₹100.
Example: Current stock price is ₹1000, and the put option strike price is ₹1100. This option is ITM because ₹1100 (strike price) - ₹1000 (current price) = ₹100.
The price you pay for an option (option premium) has two parts:
Formula: Option Premium=Intrinsic Value+Time ValueOption Premium=Intrinsic Value+Time Value
Let’s take another example to understand an ITM Call Option:
An ITM call option has a strike price lower than the current stock price.
Example:
ITM call options can be a powerful tool, but it's important to understand the costs, risks, and limitations before using them. Carefully consider your investment goals and risk tolerance before diving in.
A circuit breaker in the stock market is a mechanism that sets a price band within which a stock can be traded on a given day. Circuit breakers operate automatically by halting trading when global exchange values reach predetermined levels. This band includes a lower limit (lower circuit) and an upper limit (upper circuit).
Stock prices often fluctuate due to market sentiments, influenced by positive or negative news. Circuit breakers are set up to prevent extreme price movements, protecting investors from sudden, unexpected changes. They also help reduce price manipulation to some extent.
The Securities and Exchange Board of India (SEBI) has defined various circuit levels: 2%, 5%, 10%, and 20%. These levels are based on the stock's closing price from the previous day.
Example:
If XYZ stock closed at ₹100 yesterday and has a 10% circuit limit, today it can only be traded between ₹90 (lower limit) and ₹110 (upper limit). If the stock reaches either limit, trading is halted.
In the trade world, a circuit breaker serves the same purpose as it does in residential electrical circuits. It engages and cuts the circuit when it senses an overload. Circuit breakers are emergency safeguards in the trading industry put in place by stock markets to temporarily or permanently halt trading activity when market prices decline drastically.
If the price hits the upper or lower limit, trading in that particular stock is halted.
A 10%, 15%, or 20% change triggers a market-wide halt.
The limits prevent excessive speculation and volatility. Depending on the stock category, a stock can shift by 5%, 10%, or a maximum of 20% during a trading day.
Let's say XYZ stock closed at ₹100 yesterday. If it has a 10% circuit limit:
Circuit breakers play a important role in stabilizing the stock market by preventing excessive volatility and protecting investors from sudden, significant price changes.
Ever wondered how much a company is "worth"? The answer lies in a key metric: Market Capitalization. In the stock market, it shows a company's total value based on its current share price and the number of shares available for trading. Instead of looking at revenue or total asset worth, investors use this number to assess a company's size. The market capitalization of a takeover candidate aids in evaluating whether the acquirer will receive a decent deal from the deal.
Market Cap = Current Share Price * Total Outstanding Shares
So, if Company W share price is Rs. 200 and there are 5 crore outstanding shares, its Market Cap would be Rs. 1,000 crore (200 * 5 crore).
It gives you a snapshot of where a company stands:
Diversification is about spreading your investments to manage risk:
Companies are categorized into different types based on their market capitalization. This helps investors balance their portfolios to minimize risk.
Market capitalization is an important factor in evaluating stocks and mutual funds. It helps investors take decisions based on their risk tolerance and return expectations. However, while it is a valuable indicator of a company’s financial health, investors should not rely solely on it. A thorough analysis of the company’s overall performance and market conditions is essential before making investment decisions.
Elections are crucial events in any democracy, and India is no exception. The outcomes of elections can have significant impacts on the stock market. This blog explores how election results influence the Indian stock market and what the potential impacts of Prime Minister Narendra Modi’s third term could be.
Prime Minister Narendra Modi, known for his strong leadership and decisive economic policies, could significantly impact the stock market if he secures a third term. Here’s how:
Modi’s government has been known for several landmark economic reforms such as the Goods and Services Tax (GST), Insolvency and Bankruptcy Code (IBC), and digitalization initiatives. A third term could mean the continuation and deepening of these reforms, providing a stable and predictable policy environment that is likely to be welcomed by investors.
Modi’s focus on infrastructure development, including projects like smart cities, improved transportation networks, and digital infrastructure, could continue. These initiatives can stimulate economic growth, create jobs, and increase demand in various sectors, positively influencing the stock market.
Under Modi’s leadership, India has improved its ease of doing business rankings and attracted significant foreign investments. A third term could further strengthen India’s global economic relations, encouraging more foreign investments and boosting market confidence.
A third term for Modi could imply political stability, which is generally favorable for the stock market. Stability reduces uncertainty and helps in long-term planning for both domestic and foreign investors.
Modi’s government has also emphasized technology and innovation through initiatives like Digital India and Make in India. Continued focus in these areas could foster a more robust tech ecosystem, providing growth opportunities for tech stocks and start-ups.
Implementation Risks: While Modi’s policies are generally market-friendly, the actual implementation of large-scale reforms can sometimes face hurdles, leading to temporary market fluctuations.
Global Economic Conditions: The global economic environment can also impact the effectiveness of Modi’s policies. Trade wars, global slowdowns, or geopolitical tensions can affect market performance regardless of domestic policies.
Election results have a deep impact on the Indian stock market, primarily due to changes in market sentiment, policy direction, and fiscal management. A potential third term for Prime Minister Narendra Modi is expected to bring continued economic reforms, infrastructure development, and political stability, all of which are likely to positively influence the stock market. However, investors should remain mindful of implementation challenges and global economic conditions that can also affect market dynamics. As always, a balanced and insightful approach to investing is crucial in navigating the impacts of election results on the stock market.
Learn more about stock market with Swastika!
A prospectus is a formal document that gives information about an investment offering to the public and is required by the Securities and Exchange Commission (SEC) to be filed. Bonds, mutual funds, and stock offers need the filing of a prospectus. Because it includes a wealth of pertinent information about the investment or security, the prospectus can assist investors in making better-informed investing decisions.
This is the initial offering document provided by the company. It contains most details about the business and the transaction. However, it doesn't include the number of shares or the price.
This document provides all the details of the investment offering to the public. It includes background information, the number of shares or certificates to be issued, and the offering price.
Prospectus Example
In mutual funds, the prospectus covers objectives, investment strategies, risks, and performance, fees, and fund management details.
Requirements for Issuing a Prospectus
To issue a prospectus, a company must:
An SEC-mandated prospectus gives investors crucial information regarding an offering of securities.
It disseminates risk information to the public and compiles important details about the investment and the business being invested in.
Investors should take into account the type and degree of risk involved, which is why those facts are usually included early in the prospectus and in more depth later on.
Investors want to know that the firm they are investing in is financially stable enough to fulfill its obligations, therefore the financial standing of the business is also crucial.
A prospectus contains the following details:
By reading the prospectus carefully, you can:
Trust Our Expert Picks
for Your Investments!
.webp)
.png)
.png)
