24
votes
Accepted
Generally, Stocks move the index. Can index also move the stock?
The tail absolutely wags the dog in the equities markets. For a long time and this has been an active area of discussion.
More pragmatically, market microstructure - such as an index or even hedging ...
- 20.2k
23
votes
Generally, Stocks move the index. Can index also move the stock?
Per definition not - the Index is only a published number and when you add the price of certain things and report this number, the number can not change the price of the items.
Now, if you have ...
- 11.6k
12
votes
Generally, Stocks move the index. Can index also move the stock?
The index is an average of the stocks in the index. A very simplistic index consisting of 3 stocks might be calculated as:
(share 1 price + share 2 price + share 3 price) / 3 = index price
In ...
- 1,464
6
votes
What's a reasonable expected profit on day trading with usd 50,000 initial outlay?
The are many articles on the net that indicate that anywhere from 80% to 95% of day traders lose money and a large percentage blow out their account in their first year of day trading. Here's one of ...
- 77k
5
votes
Why does my portfolio trend in the opposite direction from the Nifty Index?
Some stocks are not always correlated with the wider market. Effects on the level of a company can cause their stock to underperform or outperform compared to the wider market. For example, if a ...
- 51
4
votes
How can intraday trading be done when settlement takes two days?
T+2 refers to the two day time limit for the exchange of cash and shares between the buyer and the seller.
When you buy the stock, you own it. You can sell your shares any time you want but you ...
- 77k
3
votes
Generally, Stocks move the index. Can index also move the stock?
As others have mentioned, the index itself is an imaginary construct derived from the prices of its constituent stocks. Therefore the index can't be changed externally and therefore have an effect on ...
- 131
3
votes
Accepted
Large Volume exchanged, but not much price change in share
These are probably block trades. See here, and for Indian markets specifically here for more details on how block trades typically work.
- 5,768
3
votes
Accepted
Question regarding closure of demat account in India
Most of the demat accounts in India have an annual fees, which they expect you to pay. If you fail to pay the fees, they would bar you from trading, and your account balance could go in negative. ...
- 376
2
votes
Accepted
What do the below terms represent in the watchlist in Keat Pro X by Kotak Mahindra Securities?
I can only answer some of them, and not being specifically familiar with that trading screen there's some educated guesswork here.
But a fair number of these are common enough terms.
Bid Prc The ...
2
votes
Wash sale rules in India (NSE/BSE)
Looks like there are no specific rule in India to prevent Wash sales. See the link below.
http://economictimes.indiatimes.com/wealth/personal-finance-news/investors-can-rejig-portfolio-book-short-...
- 68
2
votes
Wash sale rules in India (NSE/BSE)
I sold it at 609.25 and buy again at 608.75 in the same day
If you Sold and bought the same day, it would be considered as intra-day trade. Profit will be due and would be taxed at normal tax ...
- 57.2k
2
votes
How to calculate nifty 50 index?
Free-float shares can and do change regularly.
However, most index providers do not change their weighting immediately. Such changes are typically made at index rebalancing time and only if a % ...
- 3,934
2
votes
Steps to making first share purchase?
You need to establish a brokerage account which you can do at your bank at a desk different from the one you usually go to for bank services, or at an independent brokerage not affiliated with your ...
- 31.7k
2
votes
Generally, Stocks move the index. Can index also move the stock?
Several answers mentioned that derivatives of the index can move the stocks but none provided examples so I though that I'd offer one:
The price of index futures equals the underlying index value ...
- 77k
2
votes
Delivery fees on which value
This has nothing to do with NSE or stock exchange.
In India we follow FIFO (first in first out) by regulation.
- 57.2k
2
votes
Accepted
What is this index all about?
Sometimes privatization signals an attitude of less regulation going forward by governments, which is always welcome news to everyone in the affected sector. Allowing companies to be privatized opens ...
- 5,390
2
votes
Duration required for stock beta calculation
There's not one "beta" for a stock - it's always relative to some benchmark. Typically the "beta" that is published is relative to some very broad benchmark like the S&P 500, ...
- 142k
2
votes
Accepted
How to get historical index stock composition of Nifty 50, Nifty Next 50 and other indexes over the years?
Hidden in the other links, Co-Pilot apparently already gave you the correct link:
https://www.niftyindices.com/reports/historical-data
Here, on top, pick "Archives of Daily/Monthly Reports".
...
- 2,993
1
vote
What's a reasonable expected profit on day trading with usd 50,000 initial outlay?
If you wan to be 'moderately successful', you need to beat the market (otherwise, buying an index fund and sitting on it all year beats you, which I would consider unsuccessful). That means, you need ...
- 38k
1
vote
How to calculate average in intraday trading of NSE/NIFTY equity shares?
For example if i bought 1000 number of HDFC shares at 500/- and it gave a spike of 515/- in a 5 minutes, i sold. so my profit would be (1000*5=5000).
1,000 x 15 = 15,000 not 5,000
If again i ...
- 77k
1
vote
Is it possible for foreigners to buy Indian stocks?
Foreign national can invest directly as individuals. Broadly they need to complete KYC and open account with a depository participant, can't buy more than 10% in any company.
Complete details at the ...
- 57.2k
1
vote
Ruchi Soya industries ltd shares
There are headlines to this effect:
Patanjali Ayurved completes acquisition of bankrupt Ruchi Soya for Rs 4,350 crore.
Is that your company? If so, google for details.
- 77k
1
vote
In India, how can I verify mutual fund holdings, to prevent frauds?
The mutual fund structure is relatively safe. The actual assets (shares, etc) are held by different legal entity and managed by different entity. The new regulations means brokers can't hold it on ...
- 57.2k
1
vote
How can intraday trading be done when settlement takes two days?
Stocks with good standing are listed as Rolling Stock. This means that although you physically don't hold the stock you can sell. The exchange and brokers manage this; the stock is notionally credited ...
- 57.2k
1
vote
Accepted
Does the share value grow if it's not traded
It doesn't actually really have a price until person E comes and wants to purchase shares, or one of A, B, C, or D decides they want to buy more shares or sell shares they already have. These ...
- 1,402
1
vote
Difference in Closing Price of Security between NSE and BSE
As a "Retail Investor"
According to the question Can I buy a share from one stock exchange and sell it to another stock exchange? on Quora, to be able to buy shares on one exchange and sell ...
- 9,600
1
vote
What's a reasonable expected profit on day trading with usd 50,000 initial outlay?
I'll assume you're asking from the perspective of a new hobbyist trader.
For a hobbyist who's new to trading, moderately successful means you're keeping most of your initial capital while gaining a ...
- 2,115
1
vote
How to get historical data for stocks in BSE or NSE exchanges in India?
Have you checked Quandl? They have historical data for NSE listed equities.
- 111
1
vote
What are the taxes for trading debt/equity in India?
Are these all of the taxes or is there any additional taxes over these?
Turn-over tax is not for retail investors. Other taxes are paid by the broker as part of transaction and one need not worry too ...
- 57.2k
Only top scored, non community-wiki answers of a minimum length are eligible