Stock Market

4Apr

IAF Air Strike Impact on the Indian Stock Market

First of all Epic Research heartily Congratulates Indian Air Force for their bravery and the Government of India for taking such a bold and strong action against terrorism as promised by our honorable PM Narendra Modi (“Is baar pura hisab liya jaega”).

On 14/Febr/2019, a vehicle-borne suicide bomber at Lethpora in the Pulwama district,J&K, India attacked a convoy of vehicles carrying CRPF(Central Reserve Police Force) Jawans. The attack was carried-out by Adil Ahmad Dar (Member of Jaish-e-Mohammad) which killed 40 CRPF Jawans and full responsibility of attack was was claimed by the Pakistan-based Islamic terror group Jaish-e-Mohommad (JeM)

The Indian Air Force on 26/Feb/2019 morning crossed Line of Control and carried out air strike at multiple terrorist training camps. This Air Strike was amid to destroy all the JeM terror camp which was running in the presence of Pakistan (Aatankistan) in Balakot Pakistan.

According to India Air Force 12 Mirage Fighter jets crossed Line Of Control and struck JeM terror launchpads in Balakot, Chakothi and Muzaffarabad areas in Pakistan, where this terror camps were running under the supervision of ISI and Pakistan. The Mirage Fighter jets dropped 1000 kg of bombs at terrorist training camps around 3:30 AM and whole operation took only 21 minutes for IAF and they came back safely without any causality.

AIR STRIKE IMPACT ON THE INDIAN STOCK MARKET

Just after the news of Air strikes, the Indian Rupee opened at 71.25 which was 27 paisa weaker with respect to yesterday’s closing price i.e. 70.98. The BSE Sensex fell nearly 500 points, whereas Nifty opened at 10775 around 100 points weaker and the fear gauged India VIX surging 17 per cent.

After that , the Indian stock market recovers around 70 points & settles around 10850. Due to increase in INR, the IT stock opened on the positive note, on the other hand Banking stocks and the NBFC opened on negative note.

  • SBI economists said, After the IAF Air Strike Stock Market will see the gradual Rise in the market because the action taken by government of India will build a positive dissuasion in the minds of investors and traders.

On Air Strike day, Nifty Index and BSE Sensex fell 1.3% Intraday before paring losses to end day 0.41% and 0.66% weaker.

India and Pakistan (Aatankistan) fought The Kargil War during May to July 1999. During this period the Indian Stock Market showed an slightly initial decline but very strong recovery thereafter. Sensex and Nifty declined by 286 points and 79 points, respectively, in initial three days of trading, but recovered strongly thereafter and ended higher by 652 points and 191 points when the conflict ended.

It was observed that overall impact was positive for the markets after Kargil War and the Indian economy grew at a healthy 6.5 % as the year before 1999–2000.

Post Surgical strikes (URI), Indian financial markets gained with the Sensex climbing by more than 100 points and the rupee too appreciated. From a longer perspective, Indian financial markets, including the currency, stock and even the bond market showed traction. For example, stock markets jumped by 3,456 points, while the rupee appreciated by 2.4 per cent.

According to the Reports impact of air strikes on terrorist training camps didn’t had any material impact on the Indian Stock Market and it remained unaffected post Uri and Kargil, as these conflicts are more localized in nature. It is also clearly mentioned by New India that there will be bold and strong action for every terrorist attacks in future, this shows New India’s decisiveness in its foreign policy and this will in fact act as a positive mark for the Marketers.

I tried to mention as many information as possible from different sources. Please comment me in the comment box if there are any points which i missed to write down. Feel Free to comment.

Epic Research Team Always stand with the Bravery of the Indian Air Forces and feel proud to have brave soldiers in our great nation. And also supports all the decisive and bold action by Government of India Against terrorism.

Jai Hind and Vandematram

4Apr

How To Prepare Yourself Before Entry In The Stock Market

How to prepare yourself before entry in the stock Market

I heard from most of the non-investors that it is easy to make investments in the stock market, but they do not do that because they think the stock market is similar as the gambling (Both are different from each other and I already clarified you this in my previous article based on the myths of the stock market). If you are new in the stock market maybe you also think the same, all it is because you are not into the market yet, but in reality, it is a tough task and how tough it is, you will get it once you entered into the market (you can also clarify your thoughts from here Epic Research). If you are really excited to enter into the market you have to prepare for it first, and how you do that I am telling it to you. For the preparation, you should ask yourself these three questions such are :

Why do you want to invest in the stock market, for money? Obviously, you are, but is it the only reason to invest in? Do you know that you also have to give so much to earn more I am not talking about the amount of money that you going to invest but along with the money it also requires your learning, your patience and the most precious your time? I don’t mean that investment is the wastage of the time, but it is really good to invest in just because when you invest in some company, it helps the company in its growth. So be prepared to invest your time too. If you ask the best thing for investments most of the people would suggest you to do real estate investments either it is good and have no risk but you need a lot of money to invest in the real estate but in case of the stock market you can invest very few amounts you are able to.

What stocks you have to invest in? If you want to enter into the market obviously you have to know how to enter. Do you have to know what stocks you are going to buy for entry? There are some options of stocks you can select it based on your analysis and risk bearing factors, such are: Equity, Commodity, Forex, Index Futures, Options, and Futures ( Here I am giving you a quick intro of all of these but I will define and simplifies each of its in details in my later articles one by one)

In equity, if you invest Rs 1 you can take the leverage of 1. Is it tough to understand? Okay, you can understand it as in equity if you invest Rs 1 you can take the things which value is one so here leverage means that value, get it? Same as In futures if you invest Rs 1 you can take the leverage of 5. In Index futures, if you invest Rs 1 you can take the leverage of 10. In commodity, if you invest Rs 1 you can take the leverage of 20. In options, if you invest Rs 1 you can take the leverage of 50. And if you invest Rs 1 you can take the leverage of 400 in Forex. So higher the profit you want higher the risk you have. Select Stocks as per your temperament, and disciplines.

The last one is when to invest in the stock market? Yes, you read it correctly, time is also an important factor when you entered the market. And generally, before the budget is the best time to invest in the stock market. Do you remember when our previous government passed the budget yet before, it was the best time for the investors as the market was high? After that, the market went down and then increases at a slow rate. How an Indian market run is based on the two factors first is the growth of the company and the second one is the psychology of investors. If psychology of the people said that the market goes up it definitely goes up. In India, this psychology drives the market.

Planning for your investment? Don’t wait, go for it. Make plans based on the above three questions. Keep in mind it is just to do homework before as well as after the investments you made in the stock market.

About the Author :

Hi everyone, I am a financial analyst in Epic Research. I like to read and write about the stock market. Hope the above content is readable and easy to understand for you.

4Apr

Some Myths Of The Stock Market

Some Myths Of The Stock Market

A vast term that is required so much learning to understand it – “The stock market”. Of course, you all know about the simple definition of the stock market, But be honest and ask it to yourself what is the very first thing comes in your mind when you hear the term “Stock market”? Is the stock market scares you? Do you have any concepts that make you scared to make an investment in the stock market? If your answer is yes, it is necessary for you to clear out all of the false concepts that you have regarding the stock market because the reality is different. So you can take advice from the financial firms viz. Epic Research. So shall we start? Okay so there are some misconceptions of the stock market, such are:

  • The very first misconception that everyone has is that the stock market is the “gambling”. And you are a gambler if you have any investment in it. Either there are some similarities between them but there is one difference that you can not change the probability of winning or losing in the gambling but you can change it in the stock market. Hence this one difference make both the terms different from each other.

  • The second misconception of the stock market is that You must have a lot of money to make an investment in the stock market. But the reality is that you can make an investment with a very few amounts. It completely depends on you that how much amount you have to invest in. Many successful investors start their investments with a few amounts.

  • Another misconception is the Stocks that valuation arises must be fall by the time. No, it’s actually not. The valuation of the stock is based on the performance of that particular company. If you have an investment in such a company that is managed by the professionals than there is less chance to fall. So the valuation of the stock based on the performance of the company.

  • Another myth is that little knowledge about the stock market is sufficient to invest in. what do you think are only knowing the definition is enough for you to invest in? I think it is not. It is similar like only knowing the alphabet is not enough for the one to write a sentence or a word. For writing a word or a sentence one needs the knowledge of placing the correct letter on the correct position. After that the word or the sentence make any sense. So if you really want to succeed in the stock market it is the must for you to have complete knowledge of it. Don’t worry I am not saying you to do the masters in the stock market. All I want to say is to take knowledge of each and every single term that is related to the stock market.

  • Another myth is that the forecasts of the trading are accurate to rely on. But the truth is that the stock market is quite unpredictable. One cannot easily predict the daily ups and downs of the stock market. But if it so how one can earn the profit on their investments? It is simple to study makes you perfect in it. We focus on market activities will help you to earn a profit.

  • One more myth is that non-investors thinks that it is simple to invest. What you have to do is just to buy at less and sell at high. In reality, not only for the beginners but also for the experienced investors it took time to understand when to buy stocks and when to sell. Sometimes one wrong decision and you get the loss.

Obviously, the above myths make someone scared to invest in the stock market. That is why I am saying you to do hard work. It is because the stock market requires lots of efforts and more and more learning about the stock market as you can. Up to date with the stock market daily updates. Clarify your thoughts of the stock market and freely invest in the stock market to earn the profit.

About the Author :

Hi everyone, I am a financial analyst in Epic Research. I like to learn and write about the stock market. I put my efforts to create the following content and really glad to share my learning with you.

4Apr

Explanation On The Types Of The Stock

Explanation on the types of the stock

Greetings to all! Hope all of you are doing well. I am here with the second part of the Stock market learning (also on Epic Research) article. In my previous article, you read about what the stock market is? Hope you read that article and understand it. Let’s Start further.

What do you think about how a company starts? To start a company there is a need for unique ideas and obviously money to invest in. Suppose there is a company that founded with three partners and 2 investors with a great idea of the business and some investment at that time these five are the partners of the profit that the company generates. After some time this company needs more amount to invest in for the growth of the company for that it needs to sell some shares that would definitely decrease the percentage of shares these five have. Since the company grows the early investors sell their stocks to earn the profit on their investments. That is why the company need more money and it allows a public figure to purchases its share. The investment of that five of the company is private and the stock that is sold to the public figure is public stock. Is it hard for you to understand? Don’t go for the deep sense, just keep in mind that not only an investors ( like your friends, family member or you too) purchase shares but also the insider of that particular company also have some percentage of shares.

There are mainly two types of stock. Such are:

1. Common Stock: Maybe you heard about it because commonly most of people talk about this kind of stock. These are the stocks that have a higher rate of return than the bond (don’t confuse with the term “bond” I will explain it further in this article). There is more risk in these stocks. If you purchase common stock of any company you have one voting right with it, that help you to vote board of directors of that particular company. So I think through these details you get the simple definition of the common stock that is “ Common stock is the type of the stock in which along with the stock you also have one voting right”. Now talk about another type of the stock i.e. Preferred Stock.

2. Preferred stock: This is another type of stock. In this type of the stock, you don’t have a voting right (in some cases you have a voting right in preferred stock, so it depends on the company of which stock you purchased). It has less risk when compared with the common stock. The company has a right to repurchase preferred stock from you when required or when such a situation occurred (only if you are the purchaser of the preferred share of that company).

When we look at the above two types we only get a difference of voting right between these two. But there is more difference between them. One of the difference is that there is a fixed dividend on the preferred stock whereas dividend of common stock vary (In some cases there is very dividend on preferred stock too, it depends on the company). The another and the important difference is that when a company is out of business the dividend of the company firstly distributed to the creditors, bondholders and then the preferred stockholder and after that, if some amount remains it distributed to the common stockholders equally. So there is no guarantee of the returns on the common stock. This is the reason that common stock have more risk.

When a company needs money to pay off bills, or for growth or for some other reason rather than taking a loan from the bank it takes money from the public figure and provides them a bond at a fixed rate of return. At the stage of the bankrupt of the company, it firstly pays to the bondholders.

A company can have more classes of the stocks it totally based on the company to company, that fits the investors of the company. A company has classes of the stocks to concentrated on the voting power. How a company does it? By dividing investors into groups. One group have ten voting rights per share but this group has a limited member, and another group has one voting right per share.

About the Author :

I am a financial analyst in Epic Research. I like to learn and write about the stock market. I tried my best to write in such a way that it is easy for everyone to read and understand. I will further upload more article related to the stock market for learning purpose. Hope you are interested to read it.

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