BSE / NSE Normal Market Opening Time: 09:15 hours
BSE / NSE Normal Market Closing Time: 15:30 hours
Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) remain open for equity trading on all weekdays from Monday to Friday for 6.15 hours.

Also Note:

Markets remain closed on declared holidays.
Special trading sessions are announced by the exchange on time to time though public notices.
Special trading session is also arranged for Diwali Muhurat Trading if that doesn’t fall under normal trading hours. Check Diwali Muhurat Trading Timings.

Stockholder (Shareholder) vs. Stakeholder

• A shareholder is always a stakeholder but a stakeholder can or cannot be the shareholder in a company.
• A shareholder has at least one stock in the public company and interest in stock performance, whereas stakeholder has an interest in the company’s performance.
• A shareholder can be an institution, company and individual holding the stocks and a stakeholder can be employees, supplier, owner, vendors, customers, and bondholders.
• A shareholder can buy or sell the stocks frequently based on their needs, but stakeholders are concerned with the long term need and performance of the company.

The answer in two words is “Demand & Supply“. Simply if there is more demand of a company shares and less people are willing to sell them, the share will move upwards. If there is a huge supply but no body is interested in buying shares at the current price, the share will move downwards.

Now the major question is how does demand or additional supply comes in to the market and the answer is, there are many factors involve in this including company’s financial result, overall economy situations, sector performance, government rules & regulations, major political & natural events, future of the company, upcoming products & services, company management changes, stock market frauds  etc.

Any of the above and many more factors affect demand & supply of a company stock and ultimately move it prices to go up & down.

It’s very hard to predict stock movement and require lots of research and expertise.

Face value is an arbitrary value of the securities determined by the issuer to analyse the growth and needs in real numbers on the balance sheets. For example, if the company has a requirement of Rs 20 lakh, it can decide the face value of the stocks at Rs 10 and issue 2 lakh shares to raise funds. With the company’s growth and investor sentiments, the value of stocks increases or decrease significantly.

According to the current market, companies are categories in large-cap, mid-cap and small-cap companies. Company’s capitalization is calculated on the basis of the total number of its outstanding shares in the market multiplied by the current price per share.

For the mid-cap companies market capitalization lies between Rs 5,000 – 20,000cr. Mid-cap companies are considerably smaller than large-cap companies in comparison to revenue, profitability, employees, client base, etc.

ISIN (International Securities Identification Number) is a unique identification number for a security across universe.

Securities Transaction Tax (STT) is a tax being levied on all transactions done on the stock exchanges.

Securities Transaction Tax is applicable on purchase or sale of equity shares, derivatives, equity oriented funds and equity oriented Mutual Funds.

Current STT on purchase or sell of an equity share is 0.075%.

A broker is a member of a stock exchange, who is permitted to do equity trades in there.  Broker is enrolled member of the exchange and is registered with SEBI.

In other word broker is an intermediate person (or a company) between an investor and a stock exchange. They buy & sell shares and other securities for investors in stock market.

Please note that an investor cannot direct deal with stock exchange.

Your stock portfolio will always consist of multiple stocks. At any particular time, some stocks will perform excellently well, while some will not. Your portfolio returns will be the average of both.

During a good market, your portfolio can give you a return as high as 30-35% (the benchmark index nifty alone gave a return of over 26%  in a year). However, during a bad market- the returns can be as low as 2-5% (maybe even negative).

If you sum up everything, you can expect an annual return of 15-18%, depending on how good you were at picking stocks. Nevertheless, you can generate even better return if you are ready to put some hard work.

Your portfolio should not be over or under diversified. Do not invest all your money in a single stock as it increases the risk in your portfolio. Diversify your portfolio by purchasing multiple stocks from different industries.

In general, you should not buy more than 8-10 stocks as it becomes really difficult for a retail investor to monitor more stocks. Besides, over-diversification kills the profit.

You should avoid investing in stocks with low liquidity. There are a number of small-cap stocks where the prices may be continuously falling, but the investors are not able to sell that stock just because there are no buyers.  Avoid investing in companies with low liquidity.

Further, for the beginners- I would also advise avoiding investing in penny stocks. These companies are very risky and prone to different scams like pump and dump etc.

Mutual Fund Service System (MFSS) is an online order collection system provided by NSE
to its eligible members for placing subscription or redemption orders on the MFSS based
on orders received from the investors.

Book Building is basically a process used in Initial Public Offer (IPO) for efficient price discovery. It is a mechanism where, during the period for which the IPO is open, bids are collected from investors at various prices, which are above or equal to the floor price.

The bid–ask bounce refers to a specific situation wherein the price of a stock or other asset bounces rapidly back and forth within the very limited range between the bid price and ask price.

The market price of a stock is the price that it sells for on the open market at a given point in time. The market price will usually fluctuate throughout the trading day as investors buy and sell stocks.

A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly tradable securities, like real estate, art, and private investments.

A stock index or stock market index is a measurement of a section of the stock market. It is computed from the prices of selected stocks (typically a weighted average). It is a tool used by investors and financial managers to describe the market, and to compare the return on specific investments.

Close Price

This is the close price of the stock on the last day it traded

1M Return

This is the percentage change in the company’s stock price over the previous 4 weeks

6M Return

This is the percentage change in the company’s stock price over the previous 26 weeks

1Y Return

This is the percentage change in the company’s stock price over the previous 52 weeks

1M Return vs Nifty

This is the percentage change in the company’s stock price minus percentage change in Nifty over the previous 4 weeks

A positive output, when the market has moved up over the previous 4 weeks, indicates that the company’s stock price moved up at a faster pace compared to the pace of market movement. A positive output, when market has dropped during the previous 4 week, indicates that either the stock price moved up defying the market or it dropped at a slower pace than the market

A negative number indicates that either the market rose at a faster pace compared to stock price movement or dropped slower compared to stock price

6M Return vs Nifty

This is the percentage change in the company’s stock price minus percentage change in Nifty over the previous 26 weeks

EV / EBITDA stands for Enterprise value (EV) divided by Earnings before interest, taxes and depreciation (EBITDA).

EV is a measure of the company’s total value and can be considered as the sum of money that needs to paid to all the stakeholders by the acquirer if he/she intends to buy the company today.

EBITDA is a measure of the company’s operating performance. It indicates the amount of profit the company earned via its core business operations before paying interest expense, taxes etc.

Suppose EV of a company is Rs.10,000 and EBITDA for the previous financial year was Rs.2,500. EV/EBITDA of the company is 10,000 / 2,500 = 4.0x.

EV/EBITDA is a valuation ratio and helps understand whether the company is overvalued or undervalued.  The best way to use a EV/EBITDA ratio is by comparing the ratio of different companies operating in the same sector. A company with lower EV/EBITDA is considered to be undervalued in comparison with company with higher EV/EBITDA. However it is important to understand the reason behind the undervaluation.  Suppose company A has EV/EBITDA of 4.0x whereas company B has EV/EBITDA of 6.3x. If the market is expecting B to grow at a faster rate, higher valuation for the same is justified. However suppose market has not understood company A’s potential correctly, then the lower valuation multiple is justified and presents a buying opportunity of the stock. If market has ignored A because of poor earnings or bad management practice, it is better to ignore the same in spite of relative cheapness.

The item is defined as close price of the stock divided by the revenue per share of the company for the most recent financial year. The ratio indicates the number of number of units of stock price to be expended to purchase 1 unit of revenue per share. Suppose revenue of the company is Rs.100,000, shares outstanding is 500 and stock price is Rs.100. PS ratio is calculated as 100/ (100,000/500) = 0.5x. So it costs Rs. 0.5 to purchase every Rupee of the company’s revenue

The ratio is calculated as dividend per share (DPS) for the most recent financial year divided by the close price of the stock. Dividend is the portion of company’s profit that is paid out to shareholders. Dividend per share (DPS) refers to the total dividend paid out divided by the common stock of the company

Suppose DPS is Rs.16 and stock price is Rs.250, dividend yield is calculated as (16/250)*100 = 6.4%

The ratio is used to calculate the earning on investment considering only dividends declared. Higher the dividend yield the better. One should always consider dividend yield when investing in a company’s stock, as it can be significant part of the return that might be generated. High dividend yield stocks could be a good investment avenue to supplement any income needs

This ratio is calculated as recent close price of the stock divided by book value per share of the company for the most recent financial year. Book value per share refers to the total shareholders investment in the company divided by shares outstanding

The ratio helps understand the unit price to be paid for the assets leftover after paying all liabilities of the company. Suppose the company has total assets of Rs.250. These assets have been purchased using Rs.180 of debt and Rs.70 shareholders equity. Hence if all liabilities of the company are to be paid off, Rs.180 worth of assets will have to be sold and Rs.70 will remain on the books of the company. If the share price of the company is Rs.300, PB ratio will be calculated as 300 / 70 = 4.3x

Just as in PE ratio, PB ratio is used for valuation purposes, specially in case of banks and financial companies. Non banking companies do carry large amount of assets on their books, however these assets are not valued on a regular basis, hence there is usually a huge divergence between book value and market value of the assets. On the contrary banks and financial companies regularly value the assets they carry on their books. Hence using PB ratio to value such companies is more appropriate and relevant

A low PB stock is considered to be undervalued compared to a higher PB one. However it is important to further analyse the reasons behind undervaluation before deciding to buy the stock

Forward PE ratio is calculated as close price of the stock divided by estimated earnings per share of the company for the current financial year. If the current stock price is Rs.300 and estimated EPS of the company for the current financial year is Rs.8, then forward PE ratio is 300/8 = 37.5

Forward PE ratio can be used to compare it with the current PE ratio of the company. Suppose current PE ratio of company A is 15 and the forward PE ratio is 12, it indicates that EPS of the company is expected to grow over the next year. The deeper the discount between current PE ratio and the forward PE ratio, the higher the potential for the stock price to increase

PE ratio is calculated as close price of the stock divided by the earnings per share excluding extraordinary items for the most recent financial year. The ratio indicates the number of units of stock price it takes to purchase a single unit of the company’s earnings per share (EPS). If the company is currently trading at Rs.300/share and EPS of the company is Rs.30, then the PE ratio is 300/30 = 10x. So it costs Rs.10 to be eligible to purchase Re.1 of the company’s earnings

Gross Domestic Product (GDP) is the most common measure to estimate the size of a country’s economy. It represents the total value of final goods and services produced domestically, in a given time period. India’s GDP was approximately USD 2.3 trillion for financial year 2015. What this means is that the total value of final goods and services produced inside the geographical boundary of India between April 2014 and March 2015 was USD 2.3 trillion.

Stop Loss (SL) and Stop Loss – Market (SLM) are order types that are sent to the exchange ONLY if the Stop loss price given is breached.

The difference between a stop loss (SL) and a normal order is the trigger price. In a normal order, you get to choose either limit order or market orders. In a stop loss order you choose limit or market, but with a trigger price.

AMO (After Market Orders) is a facility we provide for people who can’t actively track the markets from 9:15 am to 3:30 pm. AMO orders can be placed only during the following time duration – Equity.

What is a CNC Order in Trading in Stock Markets? The full form of CNC is Cash N Carry and the CNC product is a non-intraday product used in the Equity Segment of BSE & NSE. It is used for buying or selling shares for delivery.

Intraday trading as the name suggests refers to the trading system where you have to square-off your trade on the same day.Squaring off the trade means that you have to do the buy and sell or sell and buy transaction on the same day before the market close.Intraday Trading is also referred to as Day trading.

A one-cancels-the-other order (OCO) is a pair of orders stipulating that if one order executes, then the other order is automatically canceled. An OCO order combines a stop order with a limit order on an automated trading platform

Stock trading involves the use of jargon, abbreviations and insider terms. They take time to learn, but once you know them, financial articles and conversations will make more sense. LTP is one of those abbreviations, standing for “last traded price.

The profit & loss statement summarizes the revenues and expenses generated by the company over the entire reporting period. The profit & loss statement is also known as the income statement, statement of earnings, statement of operations, or statement of income.

Over time, groups of daily candlesticks fall into recognizable patterns with descriptive names like three white soldiers, dark cloud cover, hammer, morning star, and abandoned baby, to name just a few.

Candlestick charts have been used in Western trading for many years and are a very popular method of plotting the price action of a given security over time.An unfilled candle, shown on the left, is created when the opening price is lower than the security’s closing price.

F&O is an abbreviation for Futures and Options. Futures and Options are derivatives products. Definition: Derivatives are securities which derive their value from one or other underlying securities. Simple explanation: A derivative is like buying financial product whose value is derived from the real asset.

Short selling is an investment or trading strategy that speculates on the decline in a stock or other securities price. It is an advanced strategy that should only be undertaken by experienced traders and investors.

The secondary market is where investors buy and sell securities they already own. It is what most people typically think of as the “stock market,” though stocks are also sold on the primary market when they are first issued. The national exchanges, such as the New York Stock Exchange (NYSE) and the NASDAQ, are secondary markets.

A primary market issues new securities on an exchange for companies, governments, and other groups to obtain financing through debt-based or equity-based securities. Primary markets are facilitated by underwriting groups consisting of investment banks that set a beginning price range for a given security and oversee its sale to investors.

A bear market is a condition in which securities prices fall 20% or more from recent highs amid widespread pessimism and negative investor sentiment. Typically, bear markets are associated with declines in an overall market or index like the S&P 500, but individual securities or commodities can be considered to be in a bear market if they experience a decline of 20% or more over a sustained period of time – typically two months or more.

A bull market is the condition of a financial market of a group of securities in which prices are rising or are expected to rise. The term “bull market” is most often used to refer to the stock market but can be applied to anything that is traded, such as bonds, real estate, currencies and commodities. Because prices of securities rise and fall essentially continuously during trading, the term “bull market” is typically reserved for extended periods in which a large portion of security prices are rising. Bull markets tend to last for months or even years.

A mutual fund is a kind of investment that uses money from investors to invest in stocks, bonds or other types of investment. A fund manager (or “portfolio manager”) decides how to invest the money, and for this he is paid a fee, which comes from the money in the fund.

A price target is an analyst’s or trader’s expectation of the future price of an asset, such as a stock, futures contract, commodity, or exchange-traded fund (ETF). An influential analyst on Wall Street may give a stock that is currently trading at $60 a one-year price target of $90.

A stop–loss order is an order placed with a broker to buy or sell once the stock reaches a certain price. A stop–loss is designed to limit an investor’s loss on a security position. Setting a stop–loss order for 10% below the price at which you bought the stock will limit your loss to 10%.

A stock dividend is a dividend payment made in the form of additional shares rather than a cash payout. … These distributions are generally acknowledged in the form of fractions paid per existing share, such as if a company issued a stock dividend of 0.05 shares for each single share held by existing shareholders.

An initial public offering (IPO) or stock market launch is a type of public offering. … Initial public offerings are used by companies to raise money for expansion and to become publicly traded enterprises. A company selling shares is never required to repay the money to the people who buy them.

Intraday trading, also called day trading, is the buying and selling of stocks and other financial instruments within the same day. In other words, all positions are squared-off before the market closes and there is no change in ownership of shares as a result of the trades.

Technical indicators are heuristic or mathematical calculations based on the price, volume, or open interest of a security or contract used by traders who follow technical analysis. By analyzing historical data, technical analysts use indicators to predict future price movements.

Blue chip stocks, also known as large cap stocks (because the companies have a high market capitalization of $1 billion or more), tend to rise and fall in conjunction with the stock market in general. Examples of blue chip stocks include Coca-Cola, Disney, Intel, and IBM.

Penny stocks are those that trade at a very low price, have very low market capitalisation, are mostly illiquid, and are usually listed on a smaller exchange. Penny stocks in the Indian stock market can have prices below Rs 10. These stocks are very speculative in nature and are considered highly risky because of lack of liquidity, smaller number of shareholders, large bid-ask spreads and limited disclosure of information.

The study and use of price and volume charts and other technical indicators to make trading decisions. Technical analysis attempts to use past stock price and volume information to predict future price movements. … Technical analysis can be used for short-term trading or long-term position buying.

Fundamental analysis is a method of evaluating the intrinsic value of an asset and analysing the factors that could influence its price in the future. This form of analysis is based on external events and influences, as well as financial statements and industry trends.

Stands For. Nifty stands for National fifty. Sensex stands for Sensitive Index. Meaning. Nifty is an index of top 50 companies traded on the National Stock Exchange (NSE)

Sensex, otherwise known as the S&P BSE Sensex index, is the benchmark index of the Bombay Stock Exchange (BSE) in India. Sensex comprises 30 of the largest and most actively-traded stocks on the BSE, providing an accurate gauge of India’s economy.

Securities and Exchange Board of India (SEBI), is a statutory regulatory body established by an Act of Parliament, to protect the interests of investors in securities, to promote the development of and to regulate the securities market. In simple terms, SEBI is the regulatory body of securities markets.

A stock exchange, share market or bourse is a place where people meet to buy and sell shares of company stock. Some stock exchanges are real places (like the New York Stock Exchange), others are virtual places (like the NASDAQ).

A trading account can be any investment account containing securities, cash or other holdings. Most commonly, trading account refers to a day trader’s primary account. … The assets held in a trading account are separated from others that may be part of a long-term buy and hold strategy.

A Demat account is an account to hold financial securities in electronic form. In India Demat accounts are maintained by two depository organisations, NSDL and CDSL. A Depository Participant, such as a bank, acts as an intermediary between the investor and the depository.

Stocks are fractional pieces of publicly traded companies. If you own a company’s stock, you own a piece of that company.

Emerging markets (EM) refers to developing markets, such as China, Brazil, or India. Learn about how these countries are using monetary and fiscal policy to promote growth to compete in the global marketplace.

The National Stock Exchange of India Limited (NSE) is the leading stock exchange India, located in Mumbai. The NSE was established in 1992 as the first dematerialized electronic exchange in the country. NSE was the first exchange in the country to provide a modern, fully automated screen-based electronic trading system which offered easy trading facility to the investors spread across the length and breadth of the country. Vikram Limaye is Managing Director & Chief Executive Officer of NSE.

National Stock Exchange has a total market capitalization of more than US$2.27 trillion, making it the world’s 11th-largest stock exchange as of April 2018. NSE’s flagship index, the NIFTY 50, the 50 stock index is used extensively by investors in India and around the world as a barometer of the Indian capital markets. Nifty 50 index was launched in 1996 by the NSE.However, Vaidyanathan (2016) estimates that only about 4% of the Indian economy / GDP is actually derived from the stock exchanges in India.

Unlike countries like the United States where nearly 70% of the GDP is derived from larger companies and the corporate sector, the corporate sector in India accounts for only 12-14% of the national GDP (as of October 2016). Of these only 7,800 companies are listed of which only 4000 trade on the stock exchanges at BSE and NSE. Hence the stocks trading at the BSE and NSE account for only around 4% of the Indian economy, which derives most of its income related activity from the so-called unorganized sector and households.

Economic Times estimated that as of April 2018, 60 million (6 crore) retail investors had invested their savings in stocks in India, either through direct purchases of equities or through mutual funds.Earlier, the Bimal Jalan Committee report estimated that barely 1.3% of India’s population invested in the stock market, as compared to 27% in USA and 10% in China.