How to Find Undervalued Stocks in India?
Undervalued stocks are shares with a market price significantly lower than what their actual value should be. The value of a company is based on certain fundamental financial indicators, such as its cash flow, profits, return on assets, liabilities, etc. For various reasons, the market price of a share may not accurately indicate the current […]
Why is P/B Ratio More Relevant for Banks Than P/E Ratio?
There are many financial ratios that can help you determine the financial health of a bank like GNPA, NNPA, PCR, CAR, CASA, NIM, P/E, and P/B ratios. Each of these ratios provides certain insights into the bank’s financial strength. Today, we are going to focus on two commonly used financial ratios – P/E and P/B […]
How to Read Stock Charts – Comprehensive guide
Stock investing requires a fundamental analysis of the company and a technical analysis of the stock price. So, if you want to invest in the stock of a particular company, analyzing its financials, management team, competitive landscape, etc., can help you understand if the company can withstand economic volatilities. Also, technical analysis that primarily includes […]
When is Intraday Profit Credited?
According to a new regulation by the Securities and Exchange Board of India (Sebi), any profit that you gain from an intraday trade will be unblocked for use only after the markets close on the next working day. This means that you will not be able to use your intraday profits from your transaction (T) […]
What is the Significance of Record Date and Ex-Dividend Date in Corporate Actions?
The announcement of any corporate action like dividend, bonus shares, rights issue and others comes along with the announcement of the record date. Record date determines the eligibility of a shareholder to avail the corporate action in question. Let’s understand the significance of the record date and ex-dividend date in this blog. What Is Record […]
How are Bond Yields and Stock Markets Related to Each Other?
Time and again a movement in bond yields has impacted the stock markets. More often than not, the two move in opposite directions. The impact and the relationship can be witnessed across borders as well. Not just domestic bond yields, a movement in U.S. bond yields have also affected stock markets back home. A rally […]
How Corporate Actions Impact Stock Price
In the world of business and finance, corporate actions govern a company’s future, for better or worse. A good understanding of the corporate action life cycle can give you a clear idea of the company’s ethical business conduct and financial health. In this blog, we learn about corporate actions processing and how it affects stock […]
How to Buy US Stocks on Groww: Step by Step Process
Diversification helps an investor get the best out of most asset classes, and international exposure might help us add that zing to our portfolio. The U.S. houses some of the best stocks globally, with great success stories behind their growth. Investing in U.S. stocks has become as easy as investing in our domestic markets as […]
How Does Inflation Impact the Stock Market?
The financial landscape of the modern world is highly complex. With more information available to investors due to the penetration of the internet in most rural areas, investor sentiment is now driven by analysis and data as opposed to an emotion-driven response. A classic example of this is inflation. Traditionally, most people regarded inflation as […]
How do Mergers and Acquisitions Affect Stock Prices
There are times when two companies decide to combine to form a stronger company in one form or another. While there are many ways in which two companies can combine, two of the most common processes are Mergers and Acquisitions. There are various reasons behind a company opting for a merger or agreeing to an […]
L&T Finance Rights Issue
L&T Finance Holdings Ltd. has announced that its ₹2,998.61-crore rights issue will be opening on 1st February 2021. The issue will close on 15th Feb 2021. As per the announcement, up to 46,13,25,021 equity shares for cash will be issued by the company at a price of Rs 65 each (including a premium of Rs […]
Things to Keep in Mind Before Investing in High P/E Stocks
Financial ratios are used by most investors to find stocks of companies that are fundamentally strong. Some commonly used ratios are Profit-to-Earnings (P/E) ratio, Debt-to-Equity (D/E) ratio, Profit-to-Book (P/B) Ratio, etc. These ratios are used by investors to choose the right stock for investing based on their investment plan and preferences. Today, we are going […]
How to Use Efficiency Ratios to Assess a Company’s Financial Health?
Fundamental analysis involves a deep dive into assessing a company’s financial standing. Here’s where efficiency ratios come to the rescue. Simply put, efficiency ratios are metrics that are used in analyzing a company’s ability to effectively employ its resources to produce income. These ratios provide a comparison of the profit/revenue generated to the expenses incurred. […]
Explained: Benjamin Graham’s 7 Stock Criteria for Defensive Investors
Investing in stock markets might seem overwhelming to a beginner owing to the range of options available. While stocks have the potential to deliver better returns than most investment options, it is important to choose them according to your investment plan and risk tolerance. Investments are subject to a lot of risks and returns are […]
How to Pick Blue Chip Stocks for Your Portfolio?
Blue Chip stocks are stocks of companies that are the pillars of an economy. These companies have a large market capitalization, stable earnings history, leaders in their domain, and promising growth prospects. They are the foundation of the financial markets and are usually preferred by many mutual funds and seasoned investors. However, there are many […]
Indian vs US Stock Market: A Comparative Analysis
The US stock markets have always been an enigma to Indian retail investors. Some of the biggest companies in the world are listed there. Now, that there are various ways to invest in the US stock markets, directly and indirectly, I decided to do a comparison study between the two and how they have performed […]
FAANG Stocks: A Look at their Performance in the Last Decade
They constitute 15% of the entire S&P 500. They have a combined market cap of over 4 trillion US dollars which is more than the GDP of most countries including India. In the last decade, more than 16% rise in all US equities market cap (more than 7500 stocks) has come from these five companies. […]
Things to Know Before You Buy Fractional Shares
When investors consider stock investments, they’re most likely thinking of a whole share. As they set their eyes on US stocks which cost significantly higher than their Indian counterparts, they tend to take a step back. This happens mainly due to two reasons – investors either don’t have enough capital to diversify their portfolio or […]
How to Buy Stocks Online?
The prospect of investing in stocks may seem daunting to someone who has only read about it in the newspapers, heard it from friends, or watched it in films and TV shows. Despite that, every year, lakhs of individuals open their first DEMAT and trading accounts to start investing in stocks. It’s because only a […]
How to Open a DEMAT Account Online?
If you want to enter the world of investment, one of the very first things that you will come across is a ‘Demat account’. A Demat account, also known as the Dematerialized account is a type of account for traders which is used to hold shares and securities in electronic format. It is much like […]