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New Investors: Getting Started in the Stock Market

Do you have any idea what is the best time to invest in the stock market? So let us have a look on new investors: getting started in the stock market. In a share market it is very important that you make a good research so that you can be benefited from the money that you have investedMany beginning investors, especially young ones, tend to believe everything they read.. The autumn months are the best times to invest because historical statistics have proven that people who invest during the fall months usually find themselves gaining larger returns on their investment than those who invest in the spring months. So many fund manager uses a multitude of companies and their historical information to prove his theory .
Steps in opening an accountBefore starting in stock market, we have to open the demate-account(dematerialize account) and bank account in the respective banks. After opening the account, you can buy/sell the shares in the stock market (NSE,BSE) on all business days. An intelligent investor will say that any day that a stock is at the desired price is the right day to invest. In evaluating the best time to invest, we have found that there are no specific months or seasons that are better than others. For example, say you want to invest in Apple, and it has been trading at a much lower price You have some money set aside, and you have stated that if Apple goes down to some dollars or less a share you will invest all of your money in it. When that day comes, it will be the right day to invest. So nobody can say which month is good or bad for investing your money in the stock market.
We can dig deeper into the question of when to invest by learning how to evaluate a potential investment opportunity. The most important thing that young investors need to learn about investing is that they must be interested in the company/product in which they plan to invest. This can make investing much more fun and interesting. You will actually enjoy researching the company's history and digging deeper into the future outlook of the company. New investors also need to learn to ask themselves whether it is worth the risk or is the company a good buy? And have I done enough research? If you answer no to any of those questions then you need to review your potential investment and look at other options. When evaluating your company you go for looking at the different patterns in the graph. You should also go for reading business news as well. For example, say a company's stock is always about twenty rupees in February but by September of that year is has reached thirty-five rupees, and then slowly drops back to twenty rupees the following February. Perhaps you should consider buying the stock in February with the intention of holding the stock until September. So you need to be extra careful. Now we would have a look at the things that you would need.
Things you’ll need:
Computers
Financial calculator
Internet Access
Brokerage Accounts
Paper And Pencils
Tips and Warnings
Try investing in a mutual fund account, at least to get started.
Look for value. Use price-earnings ratios, usually reported in newspapers' stock tables, to compare a stock to industry norms before you buy. So always try to make the best research if you wish to be successful in the long run. Make sure that you keep yourself updated on the current sensex. It is your money and you cannot afford to lose your cash by investing in the wrong shares. So you have come to know new investors: getting started in the stock market. Do try to get the best advice from an experienced person who invests in the stock market so as to get the maximum benefit from your investment. You can also approach a good broker who can help you in getting the best stocks for you and you can get good profits.

Bombay Stock Exchange

The Bombay Stock Exchange or BSE as it is most popularly known is the oldest stock exchange in Asia. In terms of listed companies (4, 800 by August 2007), the Bombay Stock Exchange is the biggest in the world. Being located at the Dalal Street in Mumbai, the stock exchange enjoys the benefits of the financial capital of India. The stock exchange was established in the year 1875 as "The Native Share & Stock Brokers Association." Bombay Stock Exchange is the first stock exchange in India to obtain permanent recognition from the Government of India under the Securities Contracts (Regulation) Act, 1956. The earlier the exchange was operated as the Association of Persons, it is now incorporated under the Companies Act, 1956. In October 2007 the market capitalization of the companies listed on the BSE was US$ 1.61 trillion that have made it the largest market in the South East Asia in terms of market capitalization.
The exchange is managed professionally under the direction of its Board of Directors that is made of eminent people from the industries and commerce and headed by the Managing director and CEO. The Board formulates all the strategies and keeps an over all control on the functioning of the exchange. The policy of the exchange has been formed to ensure optimum integrality and transparency in the processes. The Bombay stock exchange has nation presence in around 417 cities and towns in India. The exchange has been providing the investors an efficient market for trading in equity, debt instruments and derivatives.
The BSE SENSEX that is also called the "BSE 30” is made of thirty scripts. The index is followed extensively in Indian capital market and it is regarded as the index of the Indian capital market. The Bombay Stock Exchange is the eminent stock exchange in India and the SENSEX of this exchange is recognized and followed all over the world. The exchange has played a pivotal role in shaping the capital market in India. The companies that are listed in the BSE index have been changed only a few times and they account for about one-fifth of the total market capitalization of the Bombay Stock Exchange. Though the SENSEX is the primary and the most widely accept index of BSE there are few indices as well, including BSE 500, BSE 100, BSE 200, BSE PSU, BSE MIDCAP, BSE SMLCAP, BSE BANKEX, BSE Tech, BSE Auto, BSE Pharma, BSE FMCG, BSE Consumer Durables and BSE Metal.

Markets will absorb record borrowing - adviser

NEW DELHI (Reuters) - India's market will be able to absorb record government borrowing announced in the budget, Planning Commission Deputy Chairman Montek Singh Ahluwalia said on Saturday, despite an initial negative reaction from bondholders.

Ahluwalia, one of the country's most powerful economic advisers, said reforms such as opening up the insurance sector would pick up after a slow period in which the government has focused more on managing the impact of the global economic crisis.

"I think overall the debt we have in mind can certainly be absorbed by the market," Montek told Reuters in an interview.

"The fact that the absolute levels of borrowing is a little high shouldn't be allowed to distract the attention from the fact that as a percent of GDP it is actually reducing."

Finance Minister Pranab Mukherjee unveiled a $239 billion budget for the new fiscal year on Friday, partially rolling back a stimulus and counting on surging growth to help cut a fiscal deficit.

Mukherjee told parliament the government plans to increase market borrowing already at a record level by 1.3 percent in FY 2011, pushing bond prices lower as investors anticipated a flood of fresh debt supply.

Analysts said the borrowing plan cements the likelihood that the central bank will raise interest rates at its next meeting on April 20.

But Montek, Prime Minister Manmohan Singh's closest adviser on economic policy, said a planned cut in the fiscal deficit was more important than borrowing. The deficit is estimated to fall to 5.5 percent of GDP in the new year from 6.9 percent this year.