Investing in the stock market seems very profitable but brings a number of risks apart from the opportunity of reaping significant returns over time. Yet, to build wealth with a multiplier effect whether it’s investing or trading, the stock market remains the most sought-after option.
Should you invest in the Indian stock markets?
As India is a fast-developing economy with new highs of indices, the market is significantly attracting investors from India and abroad. The Indian stock market is one of the top performing in the world. It is not about available opportunities only but what also matters are fundamental calls and timing of the decision as there are thousands of Indian stocks. Looking at the fundamentals of the Indian stock market with comparative high returns and GDP, you can find many opportunities to invest in.
Opportunities in Indian stocks
There are a plethora of investment opportunities that the stock market offers. Finding out the potential of a particular stock in India does hold ground.
Sectoral investing is a time-tested method to get returns where you follow sector-specific trends to match up with your investment objectives. As the worldwide economy remains slow under the current scenario, certain sectors have shown signs of pick up.
Let’s find out the segments that offer greater opportunities to reap returns.
This sector is an investment opportunity in the present scenario. Investing in the selective blue-chip stocks in the auto sector buffs as it is trading at a low Price-to-Earnings ratio. So, one should take advantage.
Information Technology Sector
To see pickup in exports, the IT sector is always followed. Most Indian IT companies are now international names with significant revenues in dollars. Forex and export related regulations affect this sector the most.
Consumer Durables sector
The Consumer Durables sector has a lot of untouched potential. An IBEF report says the sector is set to reach at Rs. 1.48 lakh crores by 2025. Investors can spread their stock buys and find the best managed companies to invest in.
Stock markets offer short term and long term gains. For short term gains, you can perform through intraday trading and for long term gains invest in the Indian stock market through a diversified investment portfolio.
Exchange Traded Funds (ETFs)
It is also an excellent way to invest in Indian stock markets through Exchange Traded Funds. ETFs are the combination of the qualities of mutual funds and the flexibility of stocks. These funds are diversified and passively-managed as they concentrate a broad basket of stocks and benchmark indexes instead of tracking one or two stocks. It improves the diversification of your investment. It can be traded throughout the day like stocks.
If you are already looking for opportunities in the stock market, you may know about Demat account meaning, trading account and intraday trading. Demat accounts hold your shares and other financial securities. You need a trading account to execute an order of buying and selling. And intraday trading refers to a trading style where day traders buy and sell stock within the same trading session to make a profit using various trading strategies.
Tips to invest smartly in the Stock Market
- Choose stocks carefully based on adequate research.
- Review your stock and mutual funds periodically.
- Consider brokerage charges while trading stocks. With Bajaj Financial Securities Limited trading account, you can save your brokerage up to 99% brokerage on delivery trades.
- Avoid complicated investments.
- Do not fall for schemes, IPOs that promise high profits in a short span.