Stock Market Investment for Beginners | Day - 6

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What does the term "Portfolio" mean in the context of Stock Market?
Portfolio - In simple terms collection of stocks is termed as Portfolio.

Let's say you bought shares of Tata Motors, Reliance Industries and Few more. Among them some stock can perform good i:e their price can rise while other stocks can perform poorly i:e their price can fall.


So as as an investor you have to manage the whole Portfolio (bucket having all stocks of yours). There is a special designation who manages other people's Portfolio known as Portfolio Manager.


What is actually Sensex & Nifty that we hear in financial world like Sensex is falling, Nifty has gone down etc.


Earlier we have seen that in IPO process public buys shares from company directly and if the public want to sell those shares to other public they can do it via stock market or share market or stock exchange e.g - NSE, BSE.


But we should remember that IPO process continues for few days only. Once the IPO process of a company is over then that company will be listed on stock exchange. Once company is listed on stock exchange general public can buy/sell the shares of this company via stock exchange.


For example on NSE around 2000 companies are listed and figure is around 5500 on BSE.


Now if you want to track the financial health of Indian economy then you need to track all those 5500 companies. Almost all of 2000 listed on NSE are common in 5500 of BSE.


Don't you think it's very complicated task to track the 5500 companies? To make this task easy Financial expertise picks few good companies from each sector and club together to represent the whole Indian economy.


For example Sensex is collection of 30 companies of BSE while Nifty-50 is 50 companies of NSE clubbed together.


Such collection is known as Stock Market Index or Stock Index.


There are many indexes available in Indian stock market. Nifty-100, Nifty -500, Nifty-Auto, Nifty-Pharma, Nifty-IT, Nifty -Bank etc.


For analogy you can think of 11 cricket players team represents the performance of Indian cricket. The person sitting in USA will see the strength of those 11 players as the strength of India in the direction of cricket play. 


Similarly if you want to have an idea about how Pharma sector is performing in india you don't need to trace all the Pharma companies but Nifty-Pharma Index only.


As the players in the Indian cricket team keeps changing based on their performance, Index also changes by replacing the older with new one to represent the economy in best possible way.


Nifty - Nse's fIFTY.


Sensex - SENSitive indEX.

List of 50 companies of NIFTY-50 Index as of DEC-2019
Company Name
Sector
Adani Ports
Infrastructure
Asian Paints Ltd
Consumer Goods
Axis Bank
Banking
Bajaj Auto
Automobile
Bajaj Finance
Financial Services
Bajaj Finserv
Financial Services
Bharti Airtel
Telecommunication
Bharti Infratel Ltd.
Telecommunication
BPCL
Energy - Oil & Gas
Britannia Industries
Consumer Goods
Cipla
Pharmaceuticals
Coal India
Energy & Mining
Dr Reddy Lab
Pharmaceuticals
Eicher Motors
Automobile
GAIL
Energy - Oil & Gas
Grasim Industries
Cement
HCL Technologies
Information Technology
HDFC
Financial Services
HDFC Bank
Banking
Hero MotoCorp
Automobile
Hindalco Industries
Metals
Hindustan Unilever
Consumer Goods
ICICI Bank
Banking
IndusInd Bank
Banking
Infosys
Information Technology
IOC
Energy - Oil & Gas
ITC Limited
Consumer Goods
JSW Steel
Metals
Kotak Mahindra Bank
Banking
Larsen & Toubro
Construction
Mahindra & Mahindra
Automobile
Maruti Suzuki
Automobile
Nestle India Ltd
Food Processing
NTPC Limited
Energy - Power
ONGC
Energy - Oil & Gas
PowerGrid Corporation of India
Energy - Power
Reliance Industries
Energy - Oil & Gas
State Bank of India
Banking
Sun Pharmaceutical
Pharmaceuticals
Tata Consultancy Services
Information Technology
Tata Motors
Automobile
Tata Steel
Metals
Tech Mahindra
Information Technology
Titan Company
Consumer Goods
UltraTech Cement
Cement
United Phosphorus Limited
Chemicals
Vedanta
Metals
Wipro
Information Technology
Yes Bank
Banking
Zee Entertainment Enterprises
Media & Entertainment
Note: The Nifty-50 index gives 39.47% weightage to financial services, 15.31% to Energy, 13.01% to IT, 12.38% to Consumer Goods, 6.11 to Automobile and nil to agricultural sector

List of  30 companies of BSE SENSEX  as of  DEC-2019.
#
CompaniesSector
1Asian PaintsPaints & Varnishes
2
Axis BankBanking
3Bajaj AutoAutomotive
4Bajaj FinanceFinance
5Bharti AirtelTelecommunications
6HCL Technologies LtdCommunication Services
7HDFC BankBanking
8Hero MotoCorpAutomotive
9Hindustan UnileverPersonal Care
10Housing Development Finance CorporationFinance
11ICICI BankBanking
12IndusInd BankBanking
13
InfosysSoftware
14
ITCCigarettes & FMCG
15
Kotak Mahindra BankBanking
16
Larsen & ToubroInfrastructure
17
Mahindra & MahindraAutomotive
18
Maruti SuzukiAutomotive
19
Nestle India Ltd
20
NTPCPower
21
Oil and Natural Gas CorporationOil & Gas
22
Power Grid Corporation of IndiaPower
23
Reliance IndustriesConglomerate
24
State Bank of IndiaBanking
25
Sun PharmaceuticalPharmaceutical
26
Tata Consultancy ServicesSoftware
27
Tata SteelSteel
28
Tech Mahindra LtdMining & Minerals
29
Titan Co Ltd
30
UltraTech Cement Ltd

Terms:
   Portfolio, Portfolio Manager.
   Sensex.
   Nifty.
   Stock Market Index.

   

Comments

  1. In context of Sensex Index , can you please elaborate more, as to how is it calculated, given the scenario that one company is at it's peak, while other is in bad phase. Is it the mean value ?

    Keep up the good work.
    --Manish

    ReplyDelete
    Replies
    1. Hi Manish!
      Thanks for asking queries.
      When any company performs bad consistently for long then that particular company can be removed and another good performing company can be added in stock index.
      It's calculation is little bit of higher level that we can't discuss in the very first iteration as it is only introductory article.
      Please stay tuned with us we will cover this too in next coming Iteration.

      Delete
  2. Thanks for your valuable information. stock investor is a stock related website which provides day to day information of the stock market.
    Marico Ltd
    Hindustan Petroleum Ltd

    ReplyDelete

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