Is Indian Stock Market Profitable?
- Asked By
- Updated On:20-Sep-2022
- Replies:2
Short Answer
Indian stock market is undoubtedly profitable, but your level of discipline and knowledge will determine how you manage and handle it. So, let's catch up a few in-depth insights on the robust stock market in India.
Detailed Answer
People today are discovering many opportunities to build their wealth and numerous ways to increase it. The Indian Stock Market is one of the most popular choices because it has experienced growth like never before, luring investors from all over the world to invest in Indian stocks.
Seeing the exponential growth, many people want to enter the stock market, but they have similar concerns, Whether the Indian Stock Market is really profitable? Today, we will help you find this answer.
Potential in the Indian Stock Market
India had the fifth-largest stock market in the world as of August 2022, with a market capitalization of 3,597,182 USD bn. Currently, more than 7,000 companies are listed on the National Stock Exchange and Bombay Stock Exchange across India.
In the upcoming years, the outlook for the Indian stock market is purely bullish. Rakesh Jhunjhunwala, the renowned investor, forecasted that the Nifty would reach 90,000–100,000 by 2030. Therefore, the potential of the Indian Stock Market is undeniable.
Is Indian Stock Market Profitable?
India has witnessed people like Rakesh Jhunjhunwala and Radhakishan Damani who made billions from the Indian Stock Market. Seeing their wealth, it may seem lucrative to invest in Indian stocks, but it's important to remember that not every investor is fortunate enough to receive the maximum return on their investment.
There are many factors that decide stock market success, and these variables not only apply to the Indian Stock Market but to the global market as well.
Deciding Factors for Success in the Indian Stock Market
These factors have been divided into two groups, one of which is technical and the other non-technical.
1.Technical Factors
Over 7000 companies are listed in the Indian stock market, making it one of the largest stock markets in terms of the number of companies. So, it is very important to know where to invest and when to invest based on technical and fundamental analysis.
Fundamental Analysis:
Fundamental analysis is the process of determining a security's intrinsic value by looking at economic and financial factors. With the help of fundamental analysis, it is possible to determine whether a security or stock is undervalued or overvalued and, with that, one can decide whether to buy or sell the stock.
Technical Analysis :
Technical analysis is the study of historical market data, such as price and volume, using chart patterns and indicators. Technical analysis helps to use past performance to predict future market behavior.
2. Non-Technical Factors
It's always important to remember that the stock market is a business and that it makes both profits and losses. Therefore, it is necessary to have both firm discipline and psychology.
One must manage their greed, fear, and unrealistic stock market expectations.
Is Indian Stock Market really profitable?
Indian Stock Market is undoubtedly profitable, but only for those who approach it as a business rather than a gamble. If you want to consistently make money in the stock market, you must conduct your own research and analysis prior to investing or trading.
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Discussion (1)
The courses by NSE Academy and few others rank as the best to learn about stock market in India. In addition to the stock market, other factors like the global market and investing in initial public offerings have also been covered in these courses.
Every Equity Investor should maintain some part of their portfolio diversified into foreign companies. This can be achieved through Foreign brokers or Mutual Funds and ETFs that invest in abroad markets. Investing abroad has many benefits such as exposure to the top global companies like Facebook, Amazon, Ford, etc. The tax implications on investments made outside India are different as foreign Equity is taxed as Debt Mutual Funds
Yes, foreign nationals are allowed to invest in the Indian stock market. Individuals can invest under the category of Qualified Foreign Investors, and Institutional investors can do so under the category of Foreign Institutional Investor (FII).
Contrary to popular belief, India has more stock exchanges than only the two most well-known, the NSE and BSE. There is no denying that these two stock exchanges dominate the Indian market, but according to SEBI, there are currently seven recognised stock exchanges in India.
Yes, NRIs can invest in Indian stock market. It is essential for the individual to check if he is considered as NRI or not according to the norms of the government. If yes, only then he can invest. There are also certain rules and regulations that must be followed.
One can either invest in bluechip companies or research extensively on the companies they feel would give returns. It also comes down to the type of investment they are ready to make. Hence, figuring out the different companies could take time, experience, and research.
Yes, an Overseas Citizen of India (OCI) can invest in Indian stock market. Let's know ways how an OCI can start investing in Indian stocks from another country.
Nifty and Sensex and two stock market index given to the top performing, financially established and stable companies where most of the individuals prefer investing.
No, both the premier stock exchanges of India - National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) do not work on Saturdays.
You can definitely trade or invest Rs 100 in Indian stock markets. There are no monetary requirements to enter the stock market hence you can buy any share that is trading under Rs 100. Apart from direct stock investing/ trading, there are some indirect ways to own shares over Rs 100. This can be done through Mutual Funds.
pia2124
Wohhhh ! Lot of answers are there but this is very well explained in clear words .