The Sensex opened 43 points lower at 14,681. After the initial weakness, the index rebounded into the positive zone and touched a high of 14,825. The index, however, could not hold gains and slipped back into the negative zone.
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Considerable weakness in energy and metal stocks saw the index drop to a low of 14,601 - down 224 points from the day's high. The Sensex finally ended with a loss of 90 points at 14,634.
The NSE Nifty was down 41 points at 4,390.
The market breadth was fairly negative - out of 2,575 stocks traded so far, 1,490 have declined, 992 have advanced and 93 were unchanged today.
Tuesday, August 19, 2008
Sensex slips below 15K
Snapping previous weeks’ gaining streak, the Sensex this week dipped 2 per cent, retreating below the 15,000 mark. With interest rates rising and inflation forging ahead of the 12 per cent mark (it stood at 12.44 per cent for the week ending August 2), there appears to be little relief in sight for the loss-stricken markets. Interest-sensitive sectors like realty and bankex were hit the hardest and registered slumps of 7 and 5 per cent respectively. Only oil and gas and healthcare indexes managed to hold on to their gains with 0.4 and 0.3 per cent rise respectively.
The whole week buzzed with activity. Even a decent growth rate of 5.4 per cent in the Index of Industrial Production for June failed to enthuse the stock markets. Crude prices, too, after declining steeply in earlier weeks, increased marginally and stood at $112 per barrel on August 14.
Towards the end of the week, what weakened sentiments further was the Prime Minister’s Economic Advisory Council’s report that painted a gloomy picture for the economy and predicted a drop in GDP growth rate from 9 per cent to 7.7 per cent. In addition, concern about the impact on fiscal deficit once the Sixth Central Pay Commission recommendations are implemented also led to the benchmark index declining.
The whole week buzzed with activity. Even a decent growth rate of 5.4 per cent in the Index of Industrial Production for June failed to enthuse the stock markets. Crude prices, too, after declining steeply in earlier weeks, increased marginally and stood at $112 per barrel on August 14.
Towards the end of the week, what weakened sentiments further was the Prime Minister’s Economic Advisory Council’s report that painted a gloomy picture for the economy and predicted a drop in GDP growth rate from 9 per cent to 7.7 per cent. In addition, concern about the impact on fiscal deficit once the Sixth Central Pay Commission recommendations are implemented also led to the benchmark index declining.
Sensex dips by 78.52 points; Nifty ends below 4400 mark
The key benchmark Sensex today ended in the red at 14,645.66 on the Bombay Stock Exchange (BSE) with a loss of 78.52 points on sustained offloading by Foreign Institutional Investors and mutual fund operators.
The Nifty index of National Stock Exchange (NSE) was quoted below the 4400 mark to close lower at 4393.05 points, showing a net loss of 37.65 points.
Trading resumed after the three-day holiday, including the Independence day, lower below the 14,700 mark at 14,681.14 with a small loss of 43.04 points.
Select heavyweight stocks ended in negative terrain after trading with extreme volatility throughout the day. Sell off in oil & gas, metal, power, auto, cement, FMCG and realty stocks put pressure on frontline indices.
Most active shares on the bourses were Reliance Industries, ICICI Bank, SBI, L&T and HDFC.
On the global front, Asian markets closed weak barring Nikkei.
Shanghai fell 5.34 per cent, Hang Seng 1.09 pc, Jakarta Composite 1.02 pc, Straits Times 0.73 pc, Kospi 0.28 pc and Taiwan Weighted 2.72 pc. However, Nikkei gained 1.12 pc. European markets were trading lower.
FTSE declined by 0.35 pc, CAC 0.54 pc and DAX by 0.80 pc, which affected the Indian bourses, brokers pointed out.
The Sensex touched an intraday high of 14,824.92 and low of 14,600.65, before closing at 14,645.66, down 78.52 points or 0.53 per cent. Nifty index of NSE closed also low at 4393.05, down 37.65 points or 0.85 pc from its last finish of 4430.70 points. It has hit a high and low of 4447.40 and 4379.85 points respectively during the session.
Market breadth was negative with 932 shares advancing, while 1678 shares declined. Nearly 552 shares remained unchanged.
The Nifty index of National Stock Exchange (NSE) was quoted below the 4400 mark to close lower at 4393.05 points, showing a net loss of 37.65 points.
Trading resumed after the three-day holiday, including the Independence day, lower below the 14,700 mark at 14,681.14 with a small loss of 43.04 points.
Select heavyweight stocks ended in negative terrain after trading with extreme volatility throughout the day. Sell off in oil & gas, metal, power, auto, cement, FMCG and realty stocks put pressure on frontline indices.
Most active shares on the bourses were Reliance Industries, ICICI Bank, SBI, L&T and HDFC.
On the global front, Asian markets closed weak barring Nikkei.
Shanghai fell 5.34 per cent, Hang Seng 1.09 pc, Jakarta Composite 1.02 pc, Straits Times 0.73 pc, Kospi 0.28 pc and Taiwan Weighted 2.72 pc. However, Nikkei gained 1.12 pc. European markets were trading lower.
FTSE declined by 0.35 pc, CAC 0.54 pc and DAX by 0.80 pc, which affected the Indian bourses, brokers pointed out.
The Sensex touched an intraday high of 14,824.92 and low of 14,600.65, before closing at 14,645.66, down 78.52 points or 0.53 per cent. Nifty index of NSE closed also low at 4393.05, down 37.65 points or 0.85 pc from its last finish of 4430.70 points. It has hit a high and low of 4447.40 and 4379.85 points respectively during the session.
Market breadth was negative with 932 shares advancing, while 1678 shares declined. Nearly 552 shares remained unchanged.
How to make money in the stock market?
This article is a COMPLETE guide to the basics of making money in the stock market! If you are considering investing in the stock market, you MUST read this article! We have explained all the concepts and talked about all the "myths" that people have about the stock market!
Plain and simple, a “stock” is a share in the ownership of a company.
A stock represents a claim on the company's assets and earnings. As you acquire more stocks, your ownership stake in the company becomes greater.
Note: Some times different words like shares, equity, stocks etc. are used. All these words mean the same thing.
Holding a company's stock means that you are one of the many owners (shareholders) of a company and, as such, you have a claim to everything the company owns.
This means that technically you own a tiny little piece of all the furniture, every trademark, and every contract of the company. As an owner, you are entitled to your share of the company's earnings as well.
These earnings will be given to you. These earnings are called “dividends” and are given to the shareholders from time to time.
A stock is represented by a "stock certificate". This is a piece of paper that is proof of your ownership. However, now-a-days you could also have a “demat” account. This means that there will be no “stock certificates”. Everything will be done though the computer electronically. Selling and buying stocks can be done just by a few clicks.
Being a shareholder of a public company does not mean you have a say in the day-to-day running of the business. Instead, “one vote per share” to elect the board of directors of the company at annual meetings is all you can do. For instance, being a Microsoft shareholder doesn't mean you can call up Bill Gates and tell him how you think the company should be run.
The management of the company is supposed to increase the value of the firm for shareholders. If this doesn't happen, the shareholders can vote to have the management removed. In reality, individual investors like you and I don't own enough shares to have a material influence on the company. It's really the big boys like large institutional investors and billionaire entrepreneurs who make the decisions.
For ordinary shareholders, not being able to manage the company isn't such a big deal. After all, the idea is that you don't want to have to work to make money, right? The importance of being a shareholder is that you are entitled to a portion of the company’s profits and have a claim on assets.
Profits are sometimes paid out in the form of dividends as mentioned earlier. The more shares you own, the larger the portion of the profits you get. Your claim on assets is only relevant if a company goes bankrupt. In case of liquidation, you'll receive what's left after all the creditors have been paid.
Another extremely important feature of stock is "limited liability", which means that, as an owner of a stock, you are "not personally liable" if the company is not able to pay its debts.
Plain and simple, a “stock” is a share in the ownership of a company.
A stock represents a claim on the company's assets and earnings. As you acquire more stocks, your ownership stake in the company becomes greater.
Note: Some times different words like shares, equity, stocks etc. are used. All these words mean the same thing.
Holding a company's stock means that you are one of the many owners (shareholders) of a company and, as such, you have a claim to everything the company owns.
This means that technically you own a tiny little piece of all the furniture, every trademark, and every contract of the company. As an owner, you are entitled to your share of the company's earnings as well.
These earnings will be given to you. These earnings are called “dividends” and are given to the shareholders from time to time.
A stock is represented by a "stock certificate". This is a piece of paper that is proof of your ownership. However, now-a-days you could also have a “demat” account. This means that there will be no “stock certificates”. Everything will be done though the computer electronically. Selling and buying stocks can be done just by a few clicks.
Being a shareholder of a public company does not mean you have a say in the day-to-day running of the business. Instead, “one vote per share” to elect the board of directors of the company at annual meetings is all you can do. For instance, being a Microsoft shareholder doesn't mean you can call up Bill Gates and tell him how you think the company should be run.
The management of the company is supposed to increase the value of the firm for shareholders. If this doesn't happen, the shareholders can vote to have the management removed. In reality, individual investors like you and I don't own enough shares to have a material influence on the company. It's really the big boys like large institutional investors and billionaire entrepreneurs who make the decisions.
For ordinary shareholders, not being able to manage the company isn't such a big deal. After all, the idea is that you don't want to have to work to make money, right? The importance of being a shareholder is that you are entitled to a portion of the company’s profits and have a claim on assets.
Profits are sometimes paid out in the form of dividends as mentioned earlier. The more shares you own, the larger the portion of the profits you get. Your claim on assets is only relevant if a company goes bankrupt. In case of liquidation, you'll receive what's left after all the creditors have been paid.
Another extremely important feature of stock is "limited liability", which means that, as an owner of a stock, you are "not personally liable" if the company is not able to pay its debts.
What are the Sensex & the Nifty?
The Sensex is an "index". What is an index? An index is basically an indicator. It gives you a general idea about whether most of the stocks have gone up or most of the stocks have gone down.
The Sensex is an indicator of all the major companies of the BSE.
The Nifty is an indicator of all the major companies of the NSE.
If the Sensex goes up, it means that the prices of the stocks of most of the major companies on the BSE have gone up. If the Sensex goes down, this tells you that the stock price of most of the major stocks on the BSE have gone down.
Just like the Sensex represents the top stocks of the BSE, the Nifty represents the top stocks of the NSE.
Just in case you are confused, the BSE, is the Bombay Stock Exchange and the NSE is the National Stock Exchange. The BSE is situated at Bombay and the NSE is situated at Delhi. These are the major stock exchanges in the country. There are other stock exchanges like the Calcutta Stock Exchange etc. but they are not as popular as the BSE and the NSE.Most of the stock trading in the country is done though the BSE & the NSE.
Besides Sensex and the Nifty there are many other indexes. There is an index that gives you an idea about whether the mid-cap stocks go up and down. This is called the “BSE Mid-cap Index”. There are many other types of indexes.
The Sensex is an indicator of all the major companies of the BSE.
The Nifty is an indicator of all the major companies of the NSE.
If the Sensex goes up, it means that the prices of the stocks of most of the major companies on the BSE have gone up. If the Sensex goes down, this tells you that the stock price of most of the major stocks on the BSE have gone down.
Just like the Sensex represents the top stocks of the BSE, the Nifty represents the top stocks of the NSE.
Just in case you are confused, the BSE, is the Bombay Stock Exchange and the NSE is the National Stock Exchange. The BSE is situated at Bombay and the NSE is situated at Delhi. These are the major stock exchanges in the country. There are other stock exchanges like the Calcutta Stock Exchange etc. but they are not as popular as the BSE and the NSE.Most of the stock trading in the country is done though the BSE & the NSE.
Besides Sensex and the Nifty there are many other indexes. There is an index that gives you an idea about whether the mid-cap stocks go up and down. This is called the “BSE Mid-cap Index”. There are many other types of indexes.
Sunday, August 10, 2008
BSE launches new Internet Trading Portal
BSE has launched new Internet Trading Portal -- BSE Webx with three products viz., Eazy, Classic and Premium. Members can provide any one or all of them to their clients for smooth trading through Internet.
1. BSEWebx Eazy
This trading product offers the following features
1. Investors can view Online quotes, market depth, indices, and company related announcements on scrips.
2. The Investors can place orders, track the status of orders placed and confirmations on trade execution and view their Net/Margin positions.
2. BSEWebx Classic
This is the high end product from the BSEWebx stable offers the following
1. Investors can create his own portfolio of scrips
2. Investors can view portfolio of scrips in the market watch online.
3. The Investors can place orders, track the status of orders placed and receive confirmations on trade execution and view their Net/Margin positions.
3. BSEWebx Premium
This is the advanced product from the BSEWebx system which includes the following features
1. Investors can create multiple portfolios of scrips for market watch.
2. Investors can view multiple market watches (upto - 3) at a time
3. Charting of Scrips i.e. intra-day/EOD/historical are available to Investors
4. The Investors can place orders, track the status of orders placed and receive confirmations on trade execution and view their Net/Margin positions.
1. BSEWebx Eazy
This trading product offers the following features
1. Investors can view Online quotes, market depth, indices, and company related announcements on scrips.
2. The Investors can place orders, track the status of orders placed and confirmations on trade execution and view their Net/Margin positions.
2. BSEWebx Classic
This is the high end product from the BSEWebx stable offers the following
1. Investors can create his own portfolio of scrips
2. Investors can view portfolio of scrips in the market watch online.
3. The Investors can place orders, track the status of orders placed and receive confirmations on trade execution and view their Net/Margin positions.
3. BSEWebx Premium
This is the advanced product from the BSEWebx system which includes the following features
1. Investors can create multiple portfolios of scrips for market watch.
2. Investors can view multiple market watches (upto - 3) at a time
3. Charting of Scrips i.e. intra-day/EOD/historical are available to Investors
4. The Investors can place orders, track the status of orders placed and receive confirmations on trade execution and view their Net/Margin positions.
Direct Market Access (DMA)
Securities & Exchange Board of India (SEBI) vide its circular no.MRD/DoP/SE/Cir-7/2008 dated April 03, 2008 as per Annexure I, has approved and given necessary guidelines for providing Direct Market Access (DMA).
Direct Market Access (DMA) facility through various connectivity modes permits the trading members of BSE to provide direct trading terminals to their DMA clients.
As quoted in the SEBI circular 'Direct Market Access (DMA) is a facility which allows brokers to offer clients direct access to the exchange trading system through the broker’s infrastructure without manual intervention by the broker. Some of the advantages offered by DMA are direct control of clients over orders, faster execution of client orders, reduced risk of errors associated with manual order entry, greater transparency, increased liquidity, lower impact costs for large orders, better audit trails and better use of hedging and arbitrage opportunities through the use of decision support tools / algorithms for trading.'
For compliance of the said circular, the guidelines are as follows:
Eligibility:
As per the SEBI Circular, DMA facility initially is being restricted to institutional clients only.
Direct Market Access (DMA) facility through various connectivity modes permits the trading members of BSE to provide direct trading terminals to their DMA clients.
As quoted in the SEBI circular 'Direct Market Access (DMA) is a facility which allows brokers to offer clients direct access to the exchange trading system through the broker’s infrastructure without manual intervention by the broker. Some of the advantages offered by DMA are direct control of clients over orders, faster execution of client orders, reduced risk of errors associated with manual order entry, greater transparency, increased liquidity, lower impact costs for large orders, better audit trails and better use of hedging and arbitrage opportunities through the use of decision support tools / algorithms for trading.'
For compliance of the said circular, the guidelines are as follows:
Eligibility:
As per the SEBI Circular, DMA facility initially is being restricted to institutional clients only.
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