A welcome step of RBI in CRR

Reserve Bank of India (RBI) has taken an important step by cutting the cash reserve ratio (CRR) by 0.5% at 5.5%. Cash reserve ratio is a parameter set by RBI for any commercial bank of the country, which indicates the minimum cash any commercial bank must hold. It normally represents the physical cash a bank hold in its bank vault. And at the same time there is no change with the repo rate. It still remains at its original 8.5% stage.

A repo rate is the rate of interest at which RBI lends fund to other banks which is 8.5% and the reserve repo rate is that rate of interest at which RBI borrows money from other commercial banks which is also remain unchanged at 7.5 %.

So a reduction in this CRR rate will enables Rs 32,000 crore flow to the economy or in other words to the market which the banks have to kept as per RBI’s regulation. So this flow will definitely hike the liquidity which was very much awaited.

We can easily notice the positive impact of Tuesday’s announcement by RBI governor D Subbarao on the stock market. The sensex and nifty, two major benchmarks of bse nse of indian stock exchange running with a hike. sensex register a jump of250 points and doing above 17,000 mark similarly with a rise of 80 points nifty is above 5,100 mark.

Regarding the GDP growth rate forecast for the year 2011-12 RBI intends a lower growth rate of 7% rather than 7.6% and tries to barricade the inflation first.

Today 6% CRR is reduced to 5.5% will effect from this January 28, 2012 which was hiked 13 times since March 2010 is definitely a welcome step from the market point of view.

SGX Nifty and its magnitude

SGX Nifty stands for Singapore Exchange Nifty, which is one of the leading exchanges of Asian continents. In todays global village every stock market is some or other way related with each other. As import export is an important section of any economy and every country is becoming more and more liberal for its foreign investors.

Through sgx nifty the international investors of Singapore can invest in bse nse of Indian stock market as sensex and nifty provides these opportunity.

As per the Prime Meridian at Greenwich, England  GMT Singapore is about 2hr 30 minutes ahead of Indian standard time so Indian investors are showing interest in sgx nifty  to reach a more accurate speculation on our market. One more thing that affects interestingly is, in Singapore exchange one can trade for 24 hours in all the seven days of a week so when the Indian markets are close sgx nifty can affect Indian indices, which can change its graph. in other words if there is a hike in Singapore exchange then Indian indices will hike and vice versa, so getting these information like how the Indian market will open before the opening of the market works as a warm up session for the intraday stocks investors.

As Singapore and India are in the same continent so definitely it will have an impact on each other’s market. As Singapore dollar is more valuable than Indian rupee so some Indians investors want to invest in Singapore exchange related to tax issues and according to Singapore governments rule one can invest up to USD 200,000 which is really a good option for Indian investor’s point of view.

Intraday tips can make you independent

Heard about something or having a little idea about that and experiencing that, there is really a hell and heaven difference, for an instance if I never drive a car but having knowledge about some driving skills and one day I got a chance to drive a car then definitely there will be a huge difference between those two experiences. Your confidence may not support you on the real road so generally what happens we need a trainer or a guide to start any kind of new journey and the most important thing is  we need a regular support from that guide till the confidence level achieved  about that new track. The situation is all same in every aspect of life.

If it is a question of investment of our hard earned money then the situation will automatically sensitive and we should be more careful. As we all know that share market is a place where making highest profit is possible at the same time a huge loss also can threaten you. So going in a new perilous way without a guide can be dangerous. In this kind of situation a stock broker firm can provide us required safety with their intraday free tips in intraday trading.

As your stock broker firm knows you personally about your investment capacity, your requirement and expectations so they can provide you perfect intraday trading tips on which you can relay, although it is necessary to do personal research comparing with the tips so that you can earn your confidence in long run, which will give you profit and you will be independent.

Equity derivative and nifty futures

Equity derivative is a kind of derivative whose value is at least derived partially from one or more underlying equity securities. For better understanding we must know what exactly a derivative is, it is simply a contract between two parties that comprises certain conditions on a particular speculative amount, date like this on some underlying equity securities.

There are different types of equity derivatives available in the stock exchanges like ‘futures’, ‘options’, ‘convertible bonds’ etc .

National Stock Exchange (NSE) which is a major stock exchange of India, launched its derivative sector in the year 2000. ‘Futures’ and ‘options’ are the most renowned segments of nse’s equity derivative part.NSE which is the 9th most powerful stock exchange in the world can provide you a good number of trading options under its equity derivative segment,  Nifty Midcap 50 index, S&P CNX Nifty Index, Bank Nifty are some of the example of those trading options.

The National Stock Exchange or nseindia presently offers trading on  9 major indices and 226 securities  for its Futures and Option segment.

stock futures is exactly a contract between the two parties for buy or sell of some asset in coming future. The contract includes generally details of the asset, date and the speculative price for the future.

stock futures segment is may be risky or safe depending how good you are in speculating and on what basis you do this if every thing will run according to you then for sure you are going to gain a very good margin or else you may have to face a heavy loss.

SENSEX AND NIFTY Fundamentals

Sensex Nifty these words becomes very common in the current world, though these words enfold certain commercial technical meanings than also nobody could say a 100 percent ignorance of these terms. So what is exactly Sensex and Nifty?

The exact answer will be ‘ Index’ then what is index?

Index can be defined as a parameter or a scoreboard from which we can know about its performance.

Sensex is the index of BSE. Similarly Nifty is the index of NSE. Both BSE NSE are the front liner stock exchanges of India. Both are situated in the capital city Mumbai. Bombay Stock Exchange or  BSE India is older than National Stock Exchange or  NSE India. BSE is not only older than NSE but also considered as the oldest stock market in Asia.

BSE’s major 30 stocks forms sensex. Sensex is also known as BSE30.If stock exchange news says sensex goes up, it means on an average these 30 stocks performance is good. So in other words sensex is not representing any individual stock position rather the average of all the 30 stocks it includes. So from the sensex we can contemplate the entire bse’s performance.

Similarly nifty includes the major 50 stocks of NSE. S&P CNX Nifty are the indices of NSE and managed by India Index Services and Products Ltd. (IISL), a joint venture between NSE and CRISIL. As nifty includes its major 50 stocks of 24 economic sectors so from nifty index we can consider the nse’s performance.

Although the head quarter offices are in Mumbai but both sensex and nifty have their branches in all over India and from any where you can do your work online. Apart from NSE and BSE there are also many other stock exchanges are present in India.