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Showing posts with label BSE trading. Show all posts
Showing posts with label BSE trading. Show all posts

Tuesday, August 17, 2010

Stock Investing Tips - repost

Since my posts relating to investment tips are all scattered so i thought of making a post which consists of links to all the posts on Stock Investing tips, It might save your precious time as searching in the box would consume time of my esteemed visitors.
Do put your comments/views about these investing tips and strategies which I am going to share here.

Doing Online trading
49 must follow Stock Investing tips
Short Selling explained
Online trading techniques for beginners
Making a profitable Investment
Stock Markets investing tips
10 Evergreen Investing tips
Best Investing Strategies
Dont's of Share markets
Choosing a Stock broker
Best Books to follow

Monday, June 16, 2008

Tips for investing in share markets

As an investor a question always arises in one's mind when to buy or sell stocks??

while purchasing or selling stocks following conditions should be clear in the mind of an investor.

One should exit a stock if following conditions are validated and should use his/her intellect and analysis ability to come to a conclusion on basis of following seven most important points for exiting or investing in stock.

also read : Open your free online share trading account NOW!!

1. Stocks underperforming consistently :If the company has reported poor results in the previous two-three quarters and the stock price has not shown any upward trend, analysts recommend you should exit a stock.

also read : : Online Share Trading Guide

2. Over Valuation :You should closely look at valuation while selling a stock. Many a time, it happens that valuation is on the higher side of the range which is not supported by visibility of earnings and ownership.

also read : Daily BSE NSE NASDAQ Closing Rates

3. Costly Acqisition : Any value destructive acquisition, according to analysts, can lead to a three-four quarter effect on the stock price of a company. Thus, you should look to exit the stock for time being.
example - Tata motors stock rates in previous quarter after acquiring jaguar/rover brands since then the stocks of tata motors are on decline

also read :How to start online share trading

4. Global Conditions of Share markets : Analysts say you should also keep a check on the global cues, especially if the company shares have a majority of the sales overseas or its performance is linked to smooth functioning of operations in a foreign country.

example IT companies are much dependent on US markets and due to recession in US market shares of IT companies are on decline.

also read :Online Share Trading Guide - for beginners

5.Passive management :Keeping a close eye on the management practices may provide you the cue for a planned exit.Analyst feel that sometimes it so happens that the management turns selfish and is involved in unfair practices such as regular insider trading and exorbitant compensation.

also read :BSE NSE NASDAQ Closing Rates

6. Financial model of the company : Analysts point out that you should evaluate the financial model of a company on a quarterly basis . It will serve not only as a guide to the current performance of the company, but also what its future goals are and how is it working towards it.

also read :How to start online share trading??

7. Rising Costs of Inputs :Analysts say you should closely monitor raw material costs of the companies in which you have shares.For instance, in case of auto and capital goods sector, the prices of major raw materials such as metals and alloys have gone up but the price of finished products can’t be increased in the same proportion because of intense competition in the sector.

also read :Get free online share trading account

Tuesday, April 8, 2008

Book Building Process - Explained

When ever a company goes public it has to bring it's IPO(Initial Public Offer) in the market with a price band which is set by the promoters of the company and the whole process is to be completed according to the guidelines of SEBI. No company can breach the guidelines for an IPO as described by the sebi in it's red herring prospectus. Book Building process goes from various stages which are explained here in detail.

Book Building is basically a capital issuance process used in Initial Public Offer (IPO) which aids price and demand discovery. It is a process used for marketing a public offer of equity shares of a company. It is a mechanism where, during the period for which the book for the IPO is open, bids are collected from investors at various prices, which are above or equal to the floor price. The process aims at tapping both wholesale and retail investors. The offer/issue price is then determined after the bid closing date based on certain evaluation criteria.

The Process for Book Building:

  • The Issuer who is planning an IPO nominates a lead merchant banker as a 'book runner'.
  • The Issuer specifies the number of securities to be issued and the price band for orders.
  • The Issuer also appoints syndicate members with whom orders can be placed by the investors.
  • Investors place their order with a syndicate member who inputs the orders into the 'electronic book'. This process is called 'bidding' and is similar to open auction.
  • A Book should remain open for a minimum of 5 days.
  • Bids cannot be entered less than the floor price.
  • Bids can be revised by the bidder before the issue closes.
  • On the close of the book building period the 'book runner evaluates the bids on the basis of the evaluation criteria which may include -
    Price Aggression
    Investor quality
    Earliness of bids, etc.
  • The book runner and the company conclude the final price at which it is willing to issue the stock and allocation of securities.
  • Generally, the number of shares are fixed, the issue size gets frozen based on the price per share discovered through the book building process.
  • Allocation of securities is made to the successful bidders.
  • Book Building is a good concept and represents a capital market which is in the process of maturing.

Guidelines for Book Building

Rules governing book building is covered in Chapter XI of the Securities and Exchange Board of India (Disclosure and Investor Protection) Guidelines 2000.

Book Building in BSE ( Bombay Stock Exchange)

  • BSE offers the book building services through the Book Building software that runs on the BSE Private network.
  • This system is one of the largest electronic book building networks anywhere spanning over 350 Indian cities through over 7000 Trader Work Stations via eased lines, VSATs and Campus LANS.
  • The software is operated through book-runners of the issue and by the syndicate member brokers. Through this book, the syndicate member brokers on behalf of themselves or their clients' place orders.
  • Bids are placed electronically through syndicate members and the information is collected on line real-time until the bid date ends.
  • In order to maintain transparency, the software gives visual graphs displaying price v/s quantity on the terminals.

Initial Public Offerings

Corporates may raise capital in the primary market by way of an initial public offer, rights issue or private placement. An Initial Public Offer (IPO) is the selling of securities to the public in the primary market. This Initial Public Offering can be made through the fixed price method, book building method or a combination of both.In case the issuer chooses to issue securities through the book building route then as per SEBI guidelines, an issuer company can issue securities in the following manner:
1. 100% of the net offer to the public through the book building route.
2. 75% of the net offer to the public through the book building process and 25% through the fixed price portion.

Difference between shares offered through book building and offer of shares through normal public issue:

Fixed Price Process :

  • Price at which the securities are offered/allotted is known in advance to the investor.
  • Demand for the securities offered is known only after the closure of the issue
  • Payment if made at the time of subscription wherein refund is given after allocation.

Book Building Process :

  • Price at which securities will be offered/allotted is not known in advance to the investor. Only an indicative price range is known.
  • Demand for the securities offered can be known everyday as the book is built.
  • Payment only after allocation.

Monday, March 17, 2008

BSE | NSE | NASDAQ Closing Rates March 2008 Trends

Closing rates of both BSE NSE NASDAQ are very important to review as they have impact on next days trade to some extent aor they can change the investors sentiments over night and there can be a turn around in share market overnight due to closing rates of Bombay Stock Exchange, National Stock Exchange, Nasdaq, Dow Jones or any other stock exchange of the world, closing rates also play there role in online trading too as investors can purchase shares when market closes and book their profits for the day.

31/3/2008 MONDAY Closing Rates:

BSE : (Closing Rate) - 15644.44 - Down(-726.85)
NSE : (Closing Rate) - 4734.50 - Down(-207.50)
NASDAQ : (Closing Rate) - 2279.10 - Up^17.92

29/3/2008 30/3/2008 - Markets closed Saturday and sunday resp

28/3/2008 FRIDAY Closing Rates:

BSE : (Closing Rate) - 16371.29 - Up^355.73
NSE : (Closing Rate) - 4942.00 - Up^111.75
NASDAQ : (Closing Rate) - 2280.83 - Down(-43.53)

27/3/2008 THURSDAY Closing Rates:

BSE : (Closing Rate) - 16015.56 - Down(-71.27)
NSE : (Closing Rate) - 4830.25 - Down(-1.27)
NASDAQ : (Closing Rate) - 2280.83 - Down(-43.53)

26/3/2008 WEDNESDAY Closing Rates:

BSE : (Closing Rates) - 16086.83 - Down(-130.66)
NSE : (Closing Rates) - 4828.85 - Down(-48.65)
NASDAQ : (Closing Rates) - 2341.05 - Up^14.30

25/3/2008 TUESDAY Closing Rates:

BSE : (Closing Rates) - 16217.49 - Up^928.09
NSE : (Closing Rates) - 4877.50 - Up^267.65
NASDAQ : ( Rate) - 2341.05 - Up^57.89

24/3/2008 MONDAY Closing Rates :

BSE : (Closing Rates) - 15289.40 - Up^294.57
NSE : (Closing Rates) - 4609.85 - Up^35.90
NASDAQ : (Rate) - 2283.16 - Up^25.31

22/3/2008 - 23/3/2008 - Markets closed - Saturday and Sunday respectively

20/3/2008 - 21/3/2008 - BSE Holidays for more about BSE holidays Scroll Down

19/3/2008 WEDNESDAY Closing Rates :

BSE : (Closing Rate) - 14994.83 - Up^161.37
NSE : (Closing Rate) - 4573.95 - Up^40.95
NASDAQ : (Rate at 4:00 pm IST) - 2268.26 - Up^91.25

18/3/2008 TUESDAY Closing Rates :

BSE - (Closing Rate) - 14822.89 - Up^13.40
NSE - (Closing Rate) - 4521.80 - Up^18.70
NASDAQ - (Rate at 4:32 pm IST) - 2177.01 - Down(-35.48)

17/3/2008 MONDAY Closing Rates :

BSE - (Closing Rate) - 14809.49 - Down(-951.03)
NSE - (Closing Rate) - 4503.10 - Down(-241.70)
NASDAQ - (Rate) - 2212.4 - Down(-51.12)

Monday, December 17, 2007

Online Share Trading-BSE|NSE

Share trading refers to buying and selling of stocks. Trading is of various types like goods trading, Stock Trading etc. Share trading is further divided into two major types-Online Share Trading and offline Share trading. Stock Markets have become very volatile these days and hence if one does not have experience of Share Market then trading can be very harmful if he/she invests in wrong Stock option. In earlier years there was no option for Online trading but in present day a person who is interested in investing in Indian Share Markets like the Bombay Stock Exchange(BSE) or in the shares of the National Stock Exchange(NSE) can be done by doing online share trading.

Trading in Stock Markets was a real problem for investors as there was no provision for purchasing shares themselves. So in those years they had to call their broker for asking about the present trend of share market and the live rate of stocks in which they wanted to invest money was told to them buy brokers via telephone line as brokers used to sit inside the stock exchanges and took some commision on the value of money by the investments. Thus they acted as Dalaal's(Middlemen) in purchasing of stocks. The whole process was fully based on trust between the investor and the broker and there was every possibility that this trust would be breached.

Online Trading started in the 21 st century and was a big breakthrough for the investors as it dismissed the use of Dalaal's or Middlemen from the whole process of trading in share market. Online Share trading can be done by a single person and that too while sitting at home hence online trading has become very comfortable and hassle free these days.
One must know that in Share Market the working principle is

"The Bigger Risk You Take More Fruitful Your Profit be" provided you take risk after invigilating all the pros and cons of the Stock in Which you want to invest. A dumb person should not invest in the share market as there is every possibilty of investing his/her money in wrong stock option and hence he/she can loose all of his/her money while doing Trading making losses.

For doing trading online one has to make DMAT account which is a government rule every one has to follow before investing in stock market. In a DMAT account a person has to give all of his/her details like permanent house number, PAN number, Occupation, Nationality etc. Hence opening a DMAT account is necessary for every individual who wants to do Share Trading.

Online Share Trading is easy for those who have good analytic skills and can analyse various scenarios of the stock in which he/she wants to invest. You must be surprised to know that world's second richest man Mr Warren Buffet has earned great money from share market.
Hence Share Market has great potential in itself and can be used as a full fledged career oppurtunity. Every one can try their luck in Share trading at BSE and NSE these days.

Many companies are providing online Share trading services to it's users. These all web portals are very score as they provide three stage authentication and all share trading activities of investors are kept fully confidential. These Online Share Trading portals companies charge nominal fees for becoming it's member which has to be renewed after a fixed time period. There are dozen of portals available in Indian Market which provide Online trading facilities.


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