How To Make Profit In Stock Market, Guide to profit in Indian stock market.

Stock Market Secrets There are many tips and tricks as to make profit in the Indian stock market. The first and foremost tip is to buy stocks at a low price and selling at a higher price. You should also have the perfect idea about the stock market and you should know when and where to invest in the stocks. For this, you can read magazines or also watch business news so that you can get to know about the present market scenario or refer sites like sharetipsinfo where you can find lot many updated research reports which will increase your exposure. Your decision should be final whether you wish to buy or sell your stocks. It is your money and you have to decide how you are going to invest your cash. You should never be in a haste to invest in the market. Have some patience as patience counts. If you are sure that you would get good benefits by investing in the company, then you can go for it. Go For Professional Help When you are thinking of to investing in the market then you need to go for a professional broker or consultant so that you could be guided from the stock market consultant about the market scenario and also get some share tips based on BSE and NSE. If you wish to beat the market then you should go for stocks that have higher customer satisfaction. There is logic behind it because when a particular product or service satisfies a client, then they become loyal to it. In this case there is an increase in returns as well as the popularity of the product amongst the investors. Whats more the price of the stock of the particular company will also get influenced in an upward direction. So you can also search the Internet if you wish to know how to make profit in stock market.

Why do you need a stock broker for trading in Indian stock market

Investing in a stock market can be quite risky if you do not know when and how to invest in the market. This is the main reason, why people go for stock brokers. Have you ever thought why do you need a stock broker? Well let us have a look at the role of a stock broker in a market. We will discuss about stock broker in this article

Role of a stock broker Stock brokers help you to make your investment in the right time and in the right place. They also help you to manage your investments and money in the Indian stock market. Being in the stock market for years, they know the best path for your money. A stock broker helps their clients to build a portfolio and also help to manage it. There are part time brokers where you are charged only a few bucks for their service but it is always best that you go for a full service broker. When you choose your broker always keep regular contacts with him and ask him about the market scenario. Beware of frauds In todays world there are lots of brokers who promise you a lot and at the end of the day you find yourself bankrupt. There are also online stock brokers who can guide you online for the investments that you make. But you should remember certain points before you go for this type of brokers. You should check their performances regularly and look at whether they are familiar with your portfolio. It is best to choose a broker that has range of services and can also offer you a range of options. You should see a broker who allows you to start with a smaller minimum deposit. You can also go for a broker that will let you open an accountwithout a minimum deposit. So, in order to invest in a stock market, you will always need some professional help. From this you can understand why do you need a broker, right? Well search for a good broker and you will see your prosperity in your investment.
Standard document require to open an Online Trading Account
1. Proof of residence (Address proof)

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2.

Driving license Voter's ID Passport Photo credit card Photo ration card Utility Bill (Telephone, Electricity etc) Bank Statement

Proof of identity

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3.

Driving license Voter's ID Passport Photo ration card

PAN Card

4.

Two photographs

List of Online Stock Brokers in India

1. Aditya Birla Money Ltd 2. Advani Share Brokers 3. Agroy 4. Anand Rathi Securities ltd 5. Angel Trade 6. Aracade Share & Stock brokers 7. Dalal & Broacha stock broking pvt ltd 8. Dalmia Securities 9. Emkay 10. Ethical investment solutions pvt ltd 11. Geojit Financial services ltd 12. ICICI Direct 13. IL & LS Investsmart 14. Indianstockmarket.net 15. Indira Securities 16. Indus Invest 17. InvestMentor Securites 18. Investment Research& Information services(IRIS) 19. Jaypee Capital Services 20. Khandwala securitiesLtd 21. Kisan Ratilal Choksey 22. LKP 23. Mangal Keshav Motilal Oswal 24. Mumbaibull.com 25. Networth stock broking Ltd 26. Orient Capital Market 27. Pratibhuti 28. RBK Share Brokers 29. Religare Securities Ltd 30. Share Khan 31. Sivan securities 32. Toss financial services 33. UTI Securities 34. Latin Manharlal

CALCULATION OF NSE AND BSE INDEXES

CALCULATION OF NSE AND BSE INDEXES We have two major stock exchanges in India. They are NSE (National Stock Exchange) and BSE (Bombay Stock Exchange). I would like to share calculation of NSE and BSE indexes from this article. Because they are the main indicators to the investors, stock market analyst etc., The tools (MACD, ROC, PIVOT POINT, EMA) which are used to calculate or predict stock market movements. They are also requiring index values of NSE or BSE. Bombay Stock Exchange OR Sensex (Sensitive Index) Bombay Stock Exchange (BSE) is an oldest stock exchange in Asia. It was started in 1875 as The Negative Share and Stock Brokers Association. There is a story behind to BSE i: e, since 1850s Four Gujarati and One Parsi or parsee(which indicates Parsis derived from a group of Persian Zoroastrians who came to India during 10th century AD) stockbrokers have met in Town Hall of Mumbai. This is an informal meeting among them. Time gone, no of brokers were increased then they would like to convert this meeting as a formal one. So they had found a place in 1874 at DALAL STREET and they made their office in DS. It is become an official organisation in 1875, called The Negative Share and Stock Brokers Association. BSE was acknowledged by Indian government in 1956 under Securities Contracts Regulation Act (SCRA). An electronic trading system was introduced by BSE in 1995 i: e, BOLT (BSE On line Trading) which has a capacity to make 8 million orders per day. Base value of SENSEX is 100 and base year is 1978 1979. The calculation of BSE was started from 1986. Earlier it was calculated by using total market capitalisation. Since 2003, it was calculated by using free float market capitalisation. SENSEX is calculated for every 15 seconds. Besides, BSE has listed more than 5033 companies. BSE is the first exchange in India to receive ISO 9001: 2000 certification. It is also the first Exchange in India and second in the world to receive Information Security Management System Standard BS 7799-2-2002 certification for its BOLT. National Stock Exchange OR NSE OR NIFTY The National Stock Exchange was promoted by leading financial institutions with the command of government of India. NSE was incorporated in November 1992 as a tax paying company. In April 1993, it was approved as a stock exchange by securities exchange board of India. NSE was started operations in the Wholesale Debt Market segment in June 1994. The Equities trading was started from November 1994 and Derivatives trading was stared fromJune 2000. Index value of NIFTY is calculated by using 50 largest companies from 24 different sectors. Base value of NIFTY is 1000 and base year is 1995. NSE is also calculated for every 15 seconds. Criterias to select 50 or 30 Companies among NSE / BSE list of Companies BSE Listed Companies as on 05 10 2011 is 5,085. NSE Listed Companies as on 05 10 2011 is 1,552.

A company must have one year history as a BSE listed company. A company should be among top 100 in BSE listed companies. A company should be a market leader in the particular sector.

 Each company should more than 0.5% of total market capitalization of Sensex. A company should have well past record. Company should be traded in each and every day of last one year (Except market holidays). After sort listing, we go to the calculation of BSE/NSE indexes. Before that we must know what is market capitalization. I would to share that too. Market capitalization: Market capitalization is total worth of a company (i.e. outstanding shares of a company). Outstanding shares are nothing but the shares which are not hold by the company or the shares which are hold by public, investors, employees etc. Formula:

Market Capitalization = No of Shares Outstanding * Market price per share Total Market Capitalization = Market capitalization of NSE 50 / BSE 30 companies.

Free Float Market Capitalization This is directly opposite to the Market capitalization. i.e. Except the Locked Shares (which includes promoter holdings, government holdings).

Free float Market Capitalization = Share Price * (Shares Outstanding Locked shares) OR Free float market capitalization =No. of outstanding share * market price of share Total Free float Market Capitalization = Free float Market capitalization of NSE 50 / BSE 30 companies.

For Example: 1.XYZ:

Imagine XYZ one of the company (which is among NSE 50 or BSE 30). XYZ has 1000 shares among that government is holding 300 shares, promoter holding is 500 shares, and 200 shares are available in market and price of a share is Rs. 10. The calculation would be, Market capitalization of the company is 1000 X 10 = 10,000. Free float market capitalization of company is 200 X 10= 2,000. 2.ZYX: ZYX has 2000 shares among that government is holding 500 shares, promoter holding is 500 shares, and 1000 shares are available in market and price of a share is Rs. 20. The calculation would be, Market capitalization of the company is 2000 X 20 = 40,000. Free float market capitalization of company is 1000 X 20= 20,000. Total Market Capitalization Total Market Capitalization = Market capitalization of NSE 50 / BSE 30 companies. Total Market Capitalization = XYZ + ZYX + + ADD UP TO NSE 50 OR BSE 30. EXAMPLE Total Market Capitalization = 10,000 (XYZ) + 40,000 (ZYX) + + ADD UP TO NSE 50 OR BSE 30. Therefore, Total Market Capitalization = 50,000 Total Free float Market Capitalization = Free float Market capitalization of NSE 50 / BSE 30 companies. Total Free float Market Capitalization = XYZ + ZYX + + ADD UP TO NSE 50 OR BSE 30. Total Free float Market Capitalization = 2,000 (XYZ) + 20,000 (ZYX) ++ ADD UP TO NSE 50 OR BSE 30. Therefore, Total Free float Market Capitalization = 22,000. Now let us calculate index value of NSE / BSE Formula for SENSEX calculation:

SENSEX = (sum of free float market cap of 30 major companies of BSE) * Index value in 1978-79 / Market cap value in 1978-79.

Assume market capitalization is 2000. Now, as per formula: SENSEX = 100000 X 100 / 2000 = 5000 Value of Sensex is 5000. Formula for Nifty calculation:

NIFTY = (Sum of free flow market cap of 50 major stocks of NSE) * Index value in 1995 / market cap value in 1995.

Assuming the market capitalization value during 1995 is 20,000. NIFTY = 100000 x 1000 / 100000 = 1000. Value of Nifty is 1000.