Introduction:
In my last blog on the Indian Stock Market, I explained the basic facts about the market for beginners. I also mentioned the unique technique of short-term trading for people who have very little knowledge about the market. Readers, who are required or interested to know about that, please go through that blog.
Here, we will move further. In the Indian Stock Market, There are two main exchanges: the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). Listing of the company and trading of shares are carried out through these two exchanges.
Bombay Stock Exchange (BSE) was established in 1875 in Bombay (Bombay is renamed now Mumbai), India. It is one of the oldest and largest exchanges in the world. Presently, BSE is dealing with a capitalization nearing US$5 Trillion. The total number of listed companies including other entities is around 5200. Other entities mean other than equity (cash) market. For example - Exchange Trade Fund (ETF), Debt fund, etc.
The National Stock Exchange (NSE) is operational in Mumbai (India) since 1994. It is also one of the largest stock exchanges in the world and deals with a capitalization likely to touch US$5 trillion. Roughly more than 2200 companies are listed in the NSE.
Both the exchanges (NSE and BSE) have national importance. The listed companies and other entities available for trade are grouped under various categories in both exchanges.
Here we will go ahead with the categories of companies listed in NSE. The performance of the companies listed in one group is shown by the average moving performance of all companies within the group and is termed an Index value. In this way, various groups have their indexes and moving values. The plural forms of index are Indexes or Indices and both forms of the plural are used frequently.
The Prefix word NIFTY is used for an index for the companies listed in NSE. Actually Nifty is the combination of two words ( NSE + FIFTY = NIFTY). It indicates the index of top 50 large cap companies listed on NSE. The name NIFTY 50 to NIFTY index is given to differentiate it from other indexes like Nifty 100, Nifty 500 etc.
Nifty 100 is a group of 100 top large cap companies by market capitalization which are listed on the NSE.
Nifty IT is a group of 10 top IT companies by market capitalization which are listed on the NSE.
Nifty Metal is a group of 15 top metal companies by market capitalization which are listed on the NSE.
In this way, several indexes are formed for NSE-listed companies and entities.
Now we will focus here on the NIFTY 50 index. As we mentioned earlier it is the group of top 50 large-cap companies based on market capitalization value. In general terms, when we say that the market on NSE is moving up or down it means that Nifty 50 is moving up or down respectively. So it is a leading indication of market mood.
The companies included in the NIFTY 50 index at the end of March 2024 are placed rankwise in the below table. However, it should be kept in mind that the ranking of the companies are based on market capitalization and other factors. Inclusion and exclusion of companies in the index is carried out time to time based on the moving stock value etc. Therefore to know about the status of a company on a particular date, you may refer to NSE or other concerned websites.
Observations:
If you go through the above table, the same facts emerge out and based on that we may plan our strategy for trading and investment in the current financial year as summarized below:
Ist Obsrvation:
Out of 50, the following 3 companies of the NIFTY50 index have given negative returns (loos) in the F.Y. 2023-24:
Out of 50, following 03 companies listed in NIFTY50 index has given less than 10% annual return (profit) in F.Y. 2023-24:
Out of 50, following 44 companies listed in NIFTY50 index have given the annual return (profit) more than 10% in the F.Y. 2023-24
4th Obsrvation:Observation
Out of 50, following 11 companies listed in the NIFTY50 index have given more than 10% prfoit + more than 1% Dividend ( 1% dividend roughly calculated on current share price) by the companies listed in the NIFTY50 index for the F.Y. 2023-24:
When and how should we buy the stocks?
Always purchase When the market is bearish.
Bearish means a minimum of 4% down from the last day's close price of stock.
The minimum investment should be around Indian Rs. 5000/.
For details go through the my first blog on wealth on this website.
Disclaimer: The best efforts are made to provide authentic information after studying the following and similar websites. Utmost care is taken during calculating the data. However, Author does not take any responsibility/guarantee for its correctness or completeness or free from typographical error. Stock market remains volatile and can not predict perfectly . The future performance of any company may not be the same as in the present or in the past. The author is not a certified financial advisor. Therefore, before any investment, take the decision at your own risk. Author is not responsible for any loss and consequences.
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