There is a positive outlook for the Indian stock market in the near term. This comes despite continued selling (of about Rs.28,000 Crore in May) by foreign investors in India. There was a rebound in the market midweek, with a gain of 2.03% (Nifty), following a week of losses. This positive performance is impressive considering…
What is the average return of Sensex? The simplest answer to this query is 13.81% per annum. But to give you this answer, I’ve made a critical assumption. It has been assumed that the holding time is three (3) years. Increasing the holding time to five (5) years will change the average return to 12.76%…
Before we get into index investing, we must know about the stock index. An index highlights changes in the collective value of a group of stocks over time. It is an indicator that highlights the performance of the entire market or a specific portion of the market (sector, theme). If there is a group of stocks, like a portfolio, the price of its components is…
Since my early days of involvement in the stock market, I was intrigued by the number called Sensex (A BSE Index). I always wanted to know how Sensex is calculated. What is fascinating about Sensex is that, when it is rising or falling, almost all stocks (mainly good ones) seems to follow its trend. I started investing…
Stock market moves in cycles (up and down). Falling prices are almost a daily routine. So, in backdrop of this fact, what is a stock market correction? When stock market index falls by -10% or below, it can be termed as a “correction”. Stock market corrections are frequent, or it is a rare phenomenon? On…
