Lesson # 8 : Market Basics

In India shares are traded on the Nifty and the Sensex. The street on where the Bombay stock exchange is located is called Dalal Street. Dalal was a very famous and powerful businessmen in Mumbai. Fortunes are made in a day and often live savings are lost on this very street. At one end of the spectrum there are people who are filled wit joy and relief and at the other end there are those who are reduced to tears by the market.

The market regulator in India is SEBI. SEBI handles everything related to the markets from fair share trading to mutual funds.

The market is influenced by a variety of factors and is controlled by those at the top who hold a significant amount of shares and whose purchase or sale can make or break the market.

When people start buying shares rapidly with the hope that it would increase in the near future it is called a bull market. Whereas when people start selling or don’t buy at all then the market is called a Bear market as the investors sort of undergo a hibernation like state.     

The Stock market is strongly influenced by it’s global counterparts. For instance, The Sensex and Nifty are influenced by The Dow Jones, Nasdaq, Nikkie, Hang Sheng to name a few. The performance of the peers is an indicator of the performance of the market.

The market is influenced by a lot of other indicators which shall be explained in the next lesson.

Loads of wealth

Udit Sabharwal {on behalf of Doodle inc}

Lesson # 7 : Stock basics

In India there are two major stock indices the first is the sensex or the sensitivity index and the second is the nifty fifty.  Almost everyone major multinational corporation trades on these indices.

Each unit of a company which an individual can purchase on payment of the market price is called a stock or share.

 

Each share has a face value of Rs 10 and when it is made available to the general public through an IPO or initial public offering the price of the share is multiplied by a certain number based on the company’s evaluation.

The value of a stock rises or falls depending upon the movement of the market.

If the a larger number of shares rise in price then the market rises. If a larger number of shares are sold then the overall market falls.

In order to buy a stock a person needs to have a demat account which can be opened with a broker such as Bajaj Capital, Share Khan, Motilal Oswal or any of the banks such as HDFC, ICICI etc.

If a stock is sold before a year then the profit obtained is taxable as it constitutes short term gains.

Loads of luck with your investments
-Doodle