StartupTalky

Tag: Share Market

  • Why did Paytm IPO Flop on its Market Debut?

    The intrinsic need of every human is to live a comfortable life. Leading a comfortable life is not easy if you don’t have some resources. It is important to note here that peace and comfort are not googleable. You need to do something to make your life a smooth sail. So that you have enough resources.

    Speaking of resources, one of the most important resources is money. It is a battery for storing value. The more you have it, the more free you will(feel) be. And mark my words, “freedom” is the ultimate flex.

    So to amass more of it, we people do many sorts of things. Some do business and others work for other businesses. If you look into the recent past you will notice how ‘investing’ as a domain has risen many folds. How people all over the internet are making portfolios. How stock market participants are rising. How everyone is hoping to get that IPO allotment. All these are examples of people trying to create some more income. Income leads to freedom. Not to mention how the “financial freedom” phrase gained momentum recently.

    Getting into stock markets has been a fad for more than a year now. Chasing IPOs is another fad for some young investors. There is an intrinsic trait of IPOs that interests everyone. The hype of listing gains. Quick profits and the first come badge. A recent hot chase was the huge Paytm IPO. Which didn’t go well. This is the article about that failure and the behemoth PayTM. Read on to see through.

    Indian Fintech Revolution
    A Brief about Paytm
    Financial State of Paytm
    Paytm Initial Public Offering (IPO)
    Paytm Listing Losses
    Paytm IPO Reviews
    Anticipated Reasons for the Downfall of Paytm IPO
    What should you do if you have bought Paytm’s Share?
    FAQ

    Indian Fintech Revolution

    Have you heard this term before? Fin-tech is a word derived from amalgamation of finance and technology. This could be named as the word of the decade. You won’t ask the reason for this, because you probably know it already.

    As the technology sector is rising, lines between companies are blurring. So much so that I would say that every company is a technological company now. With gaps blurring between sectors, the financial sector is the next most diffusing sector. It is hugely automated and also supported by countries’ governments. For example, in India the government is promoting digital payments after the demonetisation. This is a good boost for online digital payments companies, UPI (unified payments methods) and the like.‌‌

    A Brief about Paytm

    Paytm is a name that needs no introduction. The name is just enough. It is a leading digital payments company that is digitalizing India. Not to mention the immense support that the company is being provided by the government. Not only this, Paytm started the digital revolution in India.

    From that, they became the leading payments app in the second most populous country in the world. Today, to the north of the 20 Million mark, merchants & businesses are powered by Paytm to Accept Payments digitally. This is because more than 300 million Indians use Paytm to pay at daily stores. That’s not all, the Paytm app is used to pay bills, Send money, do Recharges to friends & family, Travel tickets & Book movies.

    The goal as the company mentions is to get unregulated businesses in the economy to the mainstream economy. Taking most of all the transactions happening in the country and enabling them digitally is an almost impossible thought. This is such a behemoth task but the digital payments provider is not looking backwards.‌‌

    It recently was listed in the stock market. It was a huge IPO. Investors all around the world were excited. It is now the biggest IPO ever in the history of the stock market in India. Previously it was Coal India which raised about 15,000 crores. Paytm is now listing to raise 18,000 crores rupees. ‌‌

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    Financial State of Paytm

    Paytm has been a loss making startup for a long time now. It is not earning at all. The startup has losses of about 4000 crore in FY 2019. That went to 3000 in FY 2020 and then to 7000 crore.

    Even though the losses are declining, this doesn’t hide the fact that the company is not earning at all. So why is that? Why a loss making company is valued so much. It is valued at over 16 billion dollars. Moreover it is able to raise money from big VCs. Asset management companies are pumping money into this loss making startup. ‌‌

    The reason why the company is left with such abundance of money is that it is a startup. An immensely successful startup. Which tries to get customers first, that is to capture a large market share.

    After getting a good chunk of the market, they will monetise themselves and earn ridiculous amounts of real cash. This is how most startups model work. They hack growth and become big organisations. They try to establish a strong company and reduce the time that is required to build a strong company.‌‌

    The startup has also already raised 8000 crores in its anchor round. Its initial public offering of Rs 18,300 crore. Top sovereign wealth funds around the world, financial investors such as Canada’s CPPIB, Singapore’s GIC, Alkeon Capital, BlackRock, Abu Dhabi Investment Authority are among those to have picked up stakes in this fintech.

    The parent organisation of Paytm is One97 communications. Other than recent fundraising rounds, One97 communications has shareholdings by top capitalists and Asset management companies. It has a 2.8 percent stake by Berkshire Hathaway, the company of world’s best known investor Warren Buffet. It has Ant group as a shareholder, that is as a subsidiary of Alibaba, founded by China’s richest man, Jack Ma.

    The promoter or the Chief executive officer of the company Vijay Shekhar Sharma has a stake of around 14 percent of the whole mammoth organisation. Other notable shareholders include Alibaba itself, Softbank, Elevation Capital. With all these big supporters this company recently filed for an IPO.

    The IPO was huge and reportedly the biggest that Indian markets have ever seen. Unfortunately, The public offering of Paytm fell down immediately after the listing. In fact today is the second day of the shares trading in the market. They went as low as 37% since the IPO.

    Let us discuss the whole public offering scenario in minute detail.‌

    Paytm Initial Public Offering (IPO)

    Initial public offering is the offering of shares to the general public. General public here means retail investors and big investors as well. When it happens for the first time, we call it the initial public offering. Accordingly it can happen second or third time also, in that case we will call it FPO or further public offering.

    IPO or any public offering happens when a company decides to take money from general people and not raise more rounds of funding. The money is needed to fuel growth. It is needed to scale the enterprise and thus the money becomes the new capital.‌‌

    In Paytm’s case, the company wanted to raise a little over 18,000 crores. This is the biggest amount ever raised in India. So the Paytm IPO is expected to be the biggest offering in Indian markets yet. The breakdown of the total money is that, 8000 something crores were new offering of shares. So, they were a fresh issue. And the remaining 10,000 crores were offered for sale, that is existing shareholders selling their share of stake. The price band of the shares ranged from 2080 to 2150 rupees per share. The valuation of the company at the time was about 1.5 lakh crores.

    The RHP is a legal prospectus for every new listing company. The red herring prospectus (RHP) of this company said that it expects to incur losses for more years before it starts making profits. The opening IPO date was 8th of November and the last date to apply was 10th of November. Face value of the share was One rupee. So it was going to be listed at a premium. ‌‌

    Paytm Share Price
    Paytm Share Price

    Paytm Listing Losses

    The Paytm IPO was subscribed only 1.89 times on Nov 10, 2021 17:00. The public issue subscribed 1.66 in the retail category, 2.79 in the QIB category, and 0.24 in the NII category. It shows that investors weren’t much interested in it or the IPO was so big that it just covers up all the demand.

    Paytm shares fell down by about 10.35% to Rs 1,402 against previous close of Rs 1,564.15 on BSE. Market cap of the company, which remained above the Rs 1 lakh crore mark on the listing day, faced down to about Rs 93,490 crore on the first listed day. This loss making startup is acting like a money guzzler.

    Paytm IPO Reviews

    Here are some reviews of the IPO from major and big fund coordinators and Asset management companies.

    International Brokerage firm Macquarie published a report on Monday. A second report on Paytm, maintaining its earlier target price of Rs 1,200 and an ‘underperform’ rating after its first one on listing day, ruffled the feathers of investors. This means that they concluded that the price of the share should be Rs1200 and the listed price is well overvalued.

    On the second day it went down to 40 percent. Exactly to the price what Macquarie anticipated but they released it after Paytm was listed on the stock market. ‌‌

    After the first day listing loss, investors panicked and tried selling this. This is a huge reminder that if you pick up a stock or an IPO to invest, do your own research. After an honest report only should you consider investing. ‌‌

    Mobikwik whose IPO was in the turn later in time also postponed their listing. Witnessing huge losses that investors incurred in Paytm’s IPO. Let us see some of the anticipated reasons that we all can see which led to the downfall of Paytm on the very first day of being listed.‌‌

    Anticipated Reasons for the Downfall of Paytm IPO

    Some of the most common seen and anticipated reasons for Paytm losing value are listed here. Let us figure out why this mega IPO is seen as a loser in the race for listing gains.‌‌

    Overall Market Conditions

    The current market conditions are also somewhat affecting the IPO listing. The current market trends show a downward trend. Today, you can see news of the market falling down 1170 marks. The day’s loss was the biggest for the index in over six months.

    This downward trend of Sensex is mainly due to Reliance sliding down 4.4% after it announced reviewing of a recent deal. Outside India and around the globe, inflation tension is rising and so are the Covid cases in Europe. All these activities have also in some sense affected Paytm’s downward trend. It is at about 37% down now from the listing day. ‌‌

    Paytm’s Financial Situation

    If you have invested in Paytm looking at the fundamentals then you know for a fact that Paytm is not going to make profit anytime soon the profitability game is slightly a long way ahead. We still don’t know when Paytm will become profitable.

    Another fact is that the newly listed companies right now are also trying to be very smart because they know that there’s heavy retail participation in the market. A lot of people like me and you will go for listing gains so Paytm came out and did a mega IPO which was 18,000 crores.‌‌

    Size of the IPO

    Listing gains comes when supply is short and the demand is quite big. In layman language, when the offering is small, listing gains are expected. In Paytm’s case, the IPO is so big that it covers the overall demand and it leaves no space left for a force to push the price up.

    The Paytm IPO was subscribed 1.89 times on Nov 10, 2021, 17:00. The public issue subscribed 1.66 in the retail category, 2.79 in the QIB category, and 0.24 in the NII category. So you see all the demand was covered with the hugeness of the IPO and less space was left to pump the price up.‌‌

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    What should you do if you have bought Paytm’s Share?

    If you are someone or you know someone who is stuck with this stock. I would suggest two options. First is to just get rid of this stock as quickly as possible. Second, if you are an investor with a long term horizon then you can consider holding this stock. But keep this in mind that this stock will take a good amount of time to go profitable.

    The reason is as we discussed earlier is that the company is making consistent losses for now. It also is forecasted that the company will only scale for now and it has no immediate plans to bring the profit perspective to the table.

    As of now, the company is down to 30-40% and it is going to take time to take back these percentages of losses, only then one can expect some profits. Again if you are looking for quick listing gains, then maybe this might not be the probable right stock and time to stay invested in this stock.

    For all the inventors who didn’t apply for this IPO this is the right moment to be aware of such scary situations. It is always best to research before you invest your money. It is really a scary situation when you invest in a big loss making startup, and you are stuck in it. Startups can be a blackhole for money for a very long time.‌‌

    Conclusion

    The reason for such a hype of this fintech company being listed is that, India is the second most populous country in the world. China, the top populous has already had their share of the fintech revolution. They are also harsh on regulations. Now it is India’s turn. India is the next hub for investors that may be domestic or foreign.

    Digital payments are expected to grow up to 5% in the next five years. Digital commerce will likely move up to 3.3%. With these things in store, India becomes the next hot spot for investments.

    Jio and digital revolution boosted the Paytm business. Demonetisation skyrocketed it. Their tagline “Paytm karo” became a household thing during these times. With the government promoting digital economy and cashless transactions, hope is high for fintech revolutionaries like Paytm.

    The listing losses taught many people to do their own research before investing anywhere. The company is expected to take a long time to jump to profits.

    Whether Paytm will change Indian payments face or it will dissolve, this is to be seen and only time will tell. One thing is for sure, it has massively added to the cashless economy that the world is striving towards.

    FAQ

    What is Paytm IPO?

    Paytm is a digital payment system, the company lunched its IPO in Bombay Stock Exchange with largest initial public offering (IPO) with the value of Rs 18,300 crores.

    Why did Paytm IPO flopped?

    Some of the common reasons why Paytm IPO flopped was Overall Market Conditions, Size of the IPO, and Paytm’s Financial Situation.

  • Investing in Foreign Stocks: How To Invest In Foreign Stocks From India?

    There’s a well-said quote that “When money speaks, no one in the entire universe checks the grammar”. That’s true, no doubt, and the whole world acknowledges this truth right now.

    If in the foreign stock market, the value of the share a person has bought increases, the financial profit out of it gets unimaginable hype. Just as an example, Warren Buffet, at the age of 11, had made a profit of 40* times than his investment. His twenty-dollar investment turned into 800 dollars at the end when he withdrew his earnings. One needs to put money into the perfect hole if they want to surpass other competitors in the league. For that, the best place is no doubt ‘The Stock Market’.

    Why Should We Invest In Foreign Stocks?
    How To Invest In Foreign Stocks?
    How Much To Invest In Foreign Stocks?
    Taxation On Foreign Stocks Investment?
    Conclusion
    FAQs

    How to trade in foreign stocks from India?

    Why Should We Invest In Foreign Stocks?

    Have a look at your daily life. You will notice, being in any corner of the country, you have been using so many international brands. Some brands are so integrated into our lives that it becomes difficult to imagine a day without them.

    Products of Apple, Google, Amazon, Netflix are flourishing every second. These international brands have competitive skills and can never let their brand down. By imagining the growth and market value of these brands, you can imagine how gigantic these foreign stocks can skyrocket your investment.

    As these brands have significant uses in our daily life, and if these uses gain a massive profit for you, then it will be a wiser choice to invest in these foreign stocks.

    How To Invest In Foreign Stocks?

    How to invest in Foreign Stocks
    How to invest in Foreign Stocks

    Stock investment is now becoming easier. Many agencies and brokerage houses are flourishing all over the world. The international stock investment is now connecting its network everywhere.

    One crucial thing everybody should understand before going with any brokerage house. Many scams and fraud brokerage houses are also settled in the market. The bunch of crooks can engulf your entire investment and leave you with a considerable loss.

    If you are new in stock investment or have little knowledge, then you might have heard about Karvy Stock Broking. This particular brokerage house did a massive scam of 2800 crores. It reduces the trust of many future investors. The Karvy investors bear a massive loss due to this scam. The vital lesson we have learned here is “to follow the big names”. It would help if you stuck with a big brokerage house providing these services with years of experience. They must have delivered a decent amount of profit to its wide users.

    You may belong from any country, some big brokerage houses must be there. Do healthy research, talk to different experiences in esters, and then decide on a good brokerage house. In India, some big names include ICICI Direct, HDFC Securities, Axis securities. They have tied up with foreign brokerage houses. You can prefer any one of these. Some of the most famous apps are Groww, Upstox, and Angel Broking.

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    How Much To Invest In Foreign Stocks?

    This is one of the most asked questions. The direct answer of this amount varies with the brokerage house. Along with that, your investment amount also decides your transaction rate. You could see the compulsory transaction charges in almost every brokerage house. The transaction charges, at a minimum, can be from 5 US dollars to $15. At maximum, it can go up to $50 in the same cases. It depends upon the stock you choose from which country. You can invest in more than 18,000 stocks as per their presentation and explanation webinar and seminars. Better it would help if you compared all the charges and commissions of all the brokerage houses.

    Another necessary charge that can be applied to cases of investment is the currency conversion rate. Depending on the company’s stocks based on which country, the invested money needs to be converted according to the currency of the respective country. A small charge may be there by the respective banks for the currency conversion. Some mobile apps also provide investment services with similar, maybe lesser charges, and some have zero transaction charges. The services which provide zero transaction charges will ultimately cut some commissions from the investment returns.

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    Taxation On Foreign Stocks Investment?

    If you’re gaining some capital gain, then taxation is no doubt terminology. You must be paying taxes to the respective country’s government, according to Indian taxation rules. Whatever investment you are going to do that will be according to the debt fund taxation. The fund withdrawal is divided into 2 set periods.

    • Short-term capital gain
    • Long-term capital gain

    The taxes will vary with your withdrawal period.

    One is the short-term capital gain which is a period of fewer than 3 years. If within your investment period you withdraw your amount before 3 years, then taxation will be according to your tax slab. According to the 2nd withdrawal rate, if you withdraw your amount after 3 years, the taxation will be 20 percent with indexation benefits. This will be your long-term capital gain. One important thing you should consider is that if you’re gaining some dividends in such cases, it will be added to your normal income. You have to pay tax for it; it will be more complex in such cases. You need the required documents to show the government for significant clarifications.

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    Conclusion

    These were the most prominent ways to invest in the foreign stock market and extract your money from it. But with the international market, the probability of risk rises too and that, in turn, raises the chance of heavy loss if the Sensex crashes. Keeping the risks aside, the above three ways are the easiest ways to access the International market from India without mobilizing. The ways are all legit and can serve the right person with the tastiest profits.

    To make more significant profits from foreign stocks, one must, in the first place, do a complete analysis of how the market there is and what can be the possible pros and cons of investing in their market. The amount of profit from the share market always lies on how good a person can foresight the market value keeping in mind all the current affairs. That’s the best way to make profits from the equity market.

    FAQs

    Can we invest in foreign stock markets from India?

    Yes, we can invest in foreign stock markets from India.

    How much can we invest in foreign stocks from India?

    As per the RBI notification in the Liberalised Remittance Scheme (LRS), an Indian resident individual can only invest up to $250,000 in foreign stocks per year.

    Yes, Stock trading is legal in India. Securities and Exchange Board of India (SEBI) manages the rules, regulation and supervision of the stock markets in India.

  • Best Stocks You Should Invest In 2021

    Money makes the world go round, quite literally. Interesting 21st century shift of focus, isn’t it? We will dwell on that phenomenon under a relevant topic, for now we will look at just the right investment opportunities that the wise are most likely to target in the year 2021. Something that should make your & my bank accounts recover fast as our nation has, from the Wuhan virus.

    IMF (International Monetary Fund) has projected a GDP growth rate of 11.5% for India, highest among all major economies including China’s – this is the kind of positive announcement we needed to set foot in the year 2021. And it showed its magic already. Stock markets jumped in excitement after Budget 2021, doubling the cheer for investors. Not forgetting that markets are highly speculative and volatile and do not always truly behave as per the economic realities on the ground, hence risky. But at the same time equally rewarding if you observe the patterns carefully over time.

    So if you think it’s time to gear up and make some far-reaching changes in your stock portfolio – in order to either revamp your share market investment that was hit by the turbulent 2020, or to readjust/diversify it to continue getting stable returns or simply to reap the gains of the rising share market – here are some of the best stocks to place your bets on in 2021.

    1. Infosys

    Infosys

    Industry: IT – Software

    Market Cap (INR. cr): 550,100.64

    Stock exchanges: BSE (500209), NSE (INFY)

    Share price history:

    Last 6 month high

    1392.70

    Jan 2021

    Last 6 month low

    912.60

    Sep 2020

    Last 52 week low

    511.10

    Mar 2020

    Current share price (BSE)

    1,291.35

    Feb 19, 2021 (closing)

    According to key brokerages, buying stocks in Infosys is worth it. IT major in the top spot shouldn’t be a surprise, especially in the post COVID economic environment. Businesses are increasingly relying on digitisation, making information technology most sought after domain. Healthy deal pipeline, cost efficiency & account expansion are some of the other factors going in this stock’s favour, experts speculate.

    2. Bharti Airtel

    Bharti Airtel
    Bharti Airtel

    Industry: Telecommunications – service

    Market Cap (INR. cr): 316,940.60

    Stock exchanges: BSE (532454), NSE (BHARTIARTL)

    Share price history:

    Last 6 month high

    610

    Jan 2021

    Last 6 month low

    394.05

    Sep 2020

    Last 52 week low

    381.05

    Mar 2020

    Current share price (BSE)

    580.95

    Feb 19, 2021 (closing)

    Telecommunications powers IT & vice versa. Both are interdependent. With internet penetration growing rapidly, and India’s rural population largely having access to internet though Smartphone, (up to 50% of population has gotten access by 2020), this sector is booming for sure. So Airtel overtaking Jio in adding new monthly subscribers in 2020 isn’t a shocker. Moreover, social distancing has made mobiles & broadband into a necessity for businesses & individuals across. Hence, foremost brokerages give thumbs up to this stock as well.

    3. SBI

    SBI
    SBI

    Industry: Banking, Finance

    Market Cap (INR. cr): 356,404.36

    Stock exchanges: BSE (500112), NSE (SBIN)

    Share price history:

    Last 6 month high

    310.80

    Jan 2021

    Last 6 month low

    175.55

    Sep 2020

    Last 52 week low

    149.55

    May 2020

    Current share price (BSE)

    399.35

    Feb 19, 2021 (closing)

    SBI is the largest public sector bank & one of the biggest corporations of 2020 according to Fortune Global 500. It is also one of the best performing stocks of recession year 2020. Consistently falling NPAs must be the reason for investors’ growing confidence in this bank with over 22,000 branches. Top brokerages too favour investing in this stock.

    4. Bajaj Finance

    Bajaj Finance
    Bajaj Finance

    Industry: Financial Services (NBFC)

    Market Cap (INR. cr): 331,365.79

    Stock exchanges: BSE (500034), NSE (BAJFINANCE)

    Share price history:

    Last 6 month high

    5372.75

    Dec 2021

    Last 6 month low

    3008.85

    Sep 2020

    Last 52 week low

    1783.10

    May 2020

    Current share price (BSE)

    5499.05

    Feb 19, 2021 (closing)

    This is another stock that brokerages approve for inclusion into your long term investment portfolio. Short term lending is the companies’ forte. A subsidiary of Bajaj Finserv Ltd. and part of the Bajaj group of companies – Asset management, wealth management & insurance are its other core financial services. What is contributing to this sector’s growth? Low interest rates, foreign fund inflows further lowering cost of money thereby liquidity and of course consumer behaviour i.e. tendency to spend more than save.

    5. HDFC Bank

    HDFC Bank
    HDFC Bank

    Industry: Banking & Financial Services

    Market Cap (INR. cr): 847,754.65

    Stock exchanges: BSE (500180), NSE (HDFCBANK)

    Share price history:

    Last 6 month high

    1511

    Jan 2021

    Last 6 month low

    994

    Aug 2020

    Last 52 week low

    738.90

    Mar 2020

    Current share price (BSE)

    1544.50

    Feb 19, 2021 (closing)

    Started as Housing Banking Development Corporation, the largest provider of housing loans, HDFC Corporation diversified into retail banking in 1994. The largest private sector bank by assets and largest by market cap, HDFC Bank gets an almost unanimous ‘buy’ recommendation from brokerages. After the market crash of March-May 2020 across all sectors, this one has shown an almost steady upward momentum. The health of this bank is also reflective in its investment of INR 1,000 crores for reconstruction of Yes bank in order to prevent its collapse in Mar 2020 due to excessive bad loans.

    This is not an exhaustive list or a blanket recommendation for all investors given the varying degrees of risk & reward taking potential. Plus, each investor has a set of expectations unique to his needs/goals. Therefore these are just a few shares (out of several), keeping one common goal out of many in mind, among multitude of investors – low risk with a good return over a long term (typically 3 years or more).

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    How to Decide Where to Invest

    Wondering what are the parameters you should consider while zeroing in on a stock? A few factors you must consider before you make your investment are:

    Market Capitalisation: It is simply the market value of the publicly listed company i.e. the number of outstanding shares multiplied by the current price per share. Hence it is a variable & keeps changing. Look out for the trend over a period of time to derive meaning. It represents size of the company (large cap/mid cap/small cap); a high market cap (relative to the industry of the company & its peers) further indicating a more stable growth, hence low risk perception.

    Sector/Industry Assessment: To look for the growth prospects of the sector you plan to invest in has crucial value. Say you want to buy stocks of a company operating in the software industry. Currently IT is a booming sector; software products & services are in huge demand due to digital drive by govt as well as global shift in consumer behavior showing inclination towards technologies like cloud, AI, robotics, 5G etc. Similarly healthcare/pharmaceutical & e-commerce are seeing an unprecedented growth due to obvious & significant post pandemic socio-economic changes. Other promising sectors would be power, infra, chemicals et al. It all comes down to which sector attracts you.

    Financial health of a company: Revenue, operating/net profit or loss, EPS, P/E ratios etc. are some of the basic pointers of the performance of a company. Analyse & compare these over a couple of quarters or years depending upon your short/long term investment goals.

    Economically, 2021 clearly is a risky terrain, just showing some green patches but with whole lot of uncertainty about the future path. So ‘caution’ is the word for 2021. Growth looks certain, in all sectors of the economy but the direction & extent will vary depending on how long & successful the vaccination drive turns out to be and that is what will eventually decide the sum total of returns you pocket.

    What Is Unique About Investing in Stock Market

    Very simplistically put, just like how you plan your diet according to your taste, you must plan your stock portfolio to best suit your financial needs and interests. Pack your investment portfolio with choice of healthy, interesting & may be a few experimental options as well. And then start to watch & study the trend of your stock performance or ROI (return on investment) over time, because this is primary in becoming a successful investor & ensuring a robust financial health.

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    Conclusion

    P.S: Again, these are only a few stocks with large market cap that brokerages & market analysts have favored buying or holding for a rather careful investor looking to safely park his money (away from gold or real estate) for a long term. There are many more, in many other industries with mid & small market cap that could give you rich returns if you do basic research & then keenly watch their trend. Timing is as important as the budget & the shares you pick. So here’s wishing a happiness ‘index’ for your shares too!

    Frequently Asked Questions – FAQs for Share Market

    How do you double your money?

    Most of us us think its a wild goose chase, but did you know according to ‘rule of 72’ you could calculate the time it’d take to double your money? The time it’d take to double your money = 72/rate of return

    Example: At 10% return money will double in 72/10 i.e. 7.2 yrs; Similarly at 8% return money would double in 72/8 i.e. 9 years.

    Do I need a large sum of money to invest in stocks?

    Absolutely not! You can start investing with a small amount of a couple of thousands to begin with. And that is usually recommended for beginners.

    Which are the best stocks to buy in India?

    Some of the best stocks to invest in India are:

    • Bharti Airtel
    • HDFC Bank
    • SBI
    • Infosys
    • Bajaj Finance
    • Hindustan Unilever
    • Kotak Mahindra Bank
    • Asian Paints