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.

ABC of Share Market

In todays materialistic world, if you want to lead a real good life style then you need to know about smart investments, where you can earn a good return to fulfill your requirements. Whether you are in a job or running a small business or a house wife also, you just need to gather knowledge and you are ready for this smart investments or we can say investment in share trading

What is the fundamental idea, on which share market stands?
 

• It is a wonderful concept, which is equally beneficial for the introducer as well as the shareholders.
• Both can make money from the market.
• Both are free to set their own limits.

How all this become possible?

To stand or to run or to accelerate any business, money is required and this is the best platform to generate money, what happens actually any share market listed company can sell its share to the public and can raise its fund by this. In this way company's aim is fulfilled then the next major question is -

why public will buy its share, what is the point?

The point is, they can also make money, once you will purchase any company's share you become automatically its shareholder who can enjoy its share from the company's profit like a silent partner. You don't have to do any thing expect investing the money and most important thing is you can sell your share online any time you want in the stock market and absolutely ready for the next investment with some other company who you think can give you better return.

These simple fundamentals and great flexibility brings the boom for the share market.

Tips on equity market

What is equity market?

Trading market can be divided in to two parts primary and secondary market. As its name says initially companies present their shares in the primary market and then it get listed for stock or equity in the secondary market.

The possibility of earning the maximum profit than any other investment always attracts the buyers towards equity market. Once you buy a share of any company you become the shareholder and in long run with the company’s progress you can easily book your profit.

What are the risk factors of share market?

If without analysis you set your financial goal in equity market then it is definitely risky. So a detail study is necessary like company’s main source of income, its expansion planning, upcoming projects, its liabilities etc. You have to go through in detail about the growth chat of that company. These are some factors on which a company can extend its control by performing well. This is only a part of the analysis, the other part includes things like natural disaster, governments subsidy schemes, international relation with other countries (related to border and financial issues) etc. these are the parts where you need to be very careful because this is not the only question about the company, it includes the entire country, anyway if a company maintains its consistency then in long run everything will be ok.

Points for final consideration

There are certain points on which an investor should pay focus

1.    About your broker – whether registered under SEBI or not

2.    Be careful about rumours

3.    Always calculate the risk and prepare accordingly

4.    Never go beyond your set limit.

If you follow these simple steps then definitely you can minimise the risk and win the profit.