Can we earn crores in the stock market?

 HI,

Yes, you can earn crores in the stock market, but it requires time, knowledge, and discipline. Many successful investors and traders have done it, but they followed the right strategies. Let’s break it down with a real example:

Rakesh Jhunjhunwala – From ₹5,000 to ₹40,000 + Crore

Rakesh Jhunjhunwala, often called India’s Warren Buffett, started investing in 1985 with just ₹5,000. He picked strong stocks like Titan, Crisil, and Lupin, held them for years, and let compounding do the magic. Over time, his portfolio grew to ₹40,000+ crore before his passing in 2022.

How Can You Do It?

1. Long-Term Investing (Power of Compounding) If you invested ₹1 lakh in Infosys in 1993, today it would be worth ₹30+ crore. Long-term investments in quality stocks create massive wealth over time.
2. Trading for Short-Term Gains Many traders make crores through futures & options, intraday, and BTST trades. Example: If you make ₹10,000 profit per day through trading and stay consistent, you can earn ₹25 lakh+ per year and scale it further.
3. Consistency & Risk Management No one wins every trade or investment. The key is to stay consistent and protect capital. Even Rakesh Jhunjhunwala faced losses but focused on long-term wealth creation.

What to Avoid?

Overtrading or gambling – Many people lose money due to greed and lack of planning.
Following random tips – Always do your research before investing.
Lack of patience – The market rewards those who think long-term.

Final Advice

Yes, earning crores is possible if you have the right mindset. Start small, learn, stay patient, and focus on growing step by step. Many have done it you can too!

Thank you!

What is the total number of stock exchanges in India?

 

Understanding Stock Exchanges in India

India’s stock market has seen a transformation over the past few decades. At one point, India had more than 20 stock exchanges spread across different cities. However, due to issues like low trading volumes, lack of transparency, and poor technological infrastructure, SEBI took steps to rationalize and regulate the number of exchanges.

As of Now: Total Number of Stock Exchanges in India

Currently Recognized by SEBI (2024):

There are 7 stock exchanges currently recognized by SEBI under the Securities Contracts (Regulation) Act, 1956:

1. NSE (National Stock Exchange)

• India’s largest and most liquid stock exchange
• Known for NIFTY index
• Fully electronic, highly automated

2. BSE (Bombay Stock Exchange)

• Asia’s oldest stock exchange
• Known for SENSEX
• High number of listed companies

3. Metropolitan Stock Exchange of India (MSEI)

• Focuses on SMEs and currencies
• Lesser-known but SEBI-recognized

4. Calcutta Stock Exchange (CSE)

• Historically important, now largely inactive
• Still SEBI-recognized, but very low trading volumes

5. India International Exchange (India INX)

• Located at GIFT City, Gujarat
• Caters to global investors
• Trades in foreign currency-denominated products

6. NSE IFSC Ltd.

• A subsidiary of NSE at GIFT City
• Enables global securities trading
• Works under the International Financial Services Centre (IFSC)

7. BSE IFSC Ltd.

• A subsidiary of BSE at GIFT City
• Focuses on international trading and alternative products

De-recognized Stock Exchanges

SEBI, in 2015, de-recognized 18 regional stock exchanges due to lack of compliance, poor infrastructure, and negligible trading. These included:

• Ahmedabad Stock Exchange
• Delhi Stock Exchange
• Madras Stock Exchange
• Cochin Stock Exchange
• Ludhiana Stock Exchange
  (and others)

These no longer function as active trading platforms and have exited the stock exchange business.

Why Only a Few Exchanges Remain Active?

• Technology Shift: Centralized, high-speed electronic trading systems like NSE and BSE made regional exchanges obsolete
• Regulatory Pressure: SEBI’s strict rules around minimum net worth, infrastructure, and volumes led to closures
• Liquidity & Trust: Traders prefer platforms with high liquidity and transparency, which smaller exchanges couldn’t offer

Example for Better Understanding:

If you’re a retail investor looking to buy shares of Tata Motors, you will likely use NSE or BSE via your broker’s app. You cannot buy the same on Delhi Stock Exchange because it no longer exists. Even if you're an NRI looking to invest in global markets, India INX or NSE IFSC can be used through the GIFT City route.

Conclusion: Only the Strongest Survived the Cleanup

“From over 20 stock exchanges to just a handful—India's stock market has become leaner, smarter, and more investor-friendly.”

Today, India has 7 recognized stock exchanges, but only a few of them—primarily NSE and BSE—handle the majority of equity trading. Others serve niche or international markets. This evolution reflects a focus on efficiency, technology, and global competitiveness.

What’s the best growth stock to buy now that is not too expensive?

 

1. Apollo finvest (India) ltd
2. Digispice Technologies ltd
3. Arman Financial Services ltd
4. Ugro Capital ltd
5. CE Info Systems ltd
6. Zapple Prepaid Ocean Services ltd
7. Garden Reach Shipbuilders ltd
8. eClerx Services ltd
9. Adani Gas ltd
10. Adani Ports & Special Economic Zone ltd
11. Ambuja Cements ltd
12. Adani Wilmar ltd
13. Gujarat Gas ltd
14. Container Corporation of India ltd
15. Dredging Corporation of India ltd
16. Hindustan Oil Exploration Company ltd
17. South West Pinnacle Exploration ltd
18. Oil India ltd
19. BPCL ltd
20. APL Apollo Tubes ltd
21. Ashapura Minechem ltd
22. Orissa Minerals Development Company ltd
23. Maithan Alloys ltd
24. SAIL ltd
25. NALCO ltd
26. NMDC ltd
27. Jindal Drilling & Industries ltd
28. Jindal Steel ltd
29. Goa Carbon ltd
30. Hester Biosciences ltd
31. Graphite India ltd
32. Drone Destination ltd
33. Droneacharya Aerial Innovations ltd
34. Tata Motors ltd
35. OLA Electric Mobility ltd
36. Tata Chemicals ltd
37. Deepak Nitrite ltd
38. Thirumalai Chemicals ltd
39. Britannia Industries ltd
40. Epigral ltd
41. Punjab National Bank
42. IDFC First bank
43. Vaibhav Global ltd
44. Sagility India ltd
45. Sunteck Realty ltd
46. Sobha ltd
47. Mishra Dhatu Nigam Ltd
48. Knowledge Marine & Engineering Works ltd
49. Shriram Finance ltd
50. CSB Bank

What is a good PE ratio for a stock?

 Many times, we hear the term PE ratio when discussing stock analysis. It is one of the most widely used financial metrics that investors rely on to evaluate whether a stock is overvalued, undervalued, or fairly priced.

Understanding the PE ratio can help investors make better decisions when selecting stocks, as it allows them to compare companies within the same sector and determine whether they are paying a reasonable price for potential earnings. However, relying solely on the PE ratio without considering other factors can lead to misleading conclusions.

The PE ratio provides a snapshot of how much investors are willing to pay for each rupee of a company's earnings. A high PE ratio may indicate that investors expect strong future growth, while a low PE ratio might suggest the stock is undervalued or that the company is facing challenges.

(Google image)

What is PE ratio?

PE ratio is one of the most widely used tools for stock selection. It is calculated by dividing the current market price of the stock by its earning per share (EPS). It shows the sum of money you are ready to pay for each rupee worth of the earnings of the company. The Price-to-Earnings (PE) ratio is calculated as:

PE = Current Market price / EPS

It tells us how much investors are willing to pay for every ₹1 of a company's earnings. A high PE suggests that the stock is expensive relative to its earnings, while a low PE may indicate that the stock is undervalued.

Now, let’s explore what makes a PE ratio good or bad and how to use it effectively for stock selection.

• No fixed PE ratio for a stock

There is no specific PE ratio for particular stock. Different companies have different PE ratio as per company sector or peer group.

• Sector-wise PE comparison is important

PE depends upon company earning so every company have different earning capacity according to company product or production and market share. But for overall sector have some specific PE that you can evaluate and compare with to your stock which related to that sector. Like If the NIFTY IT index PE is around 18-20, and an IT stock like Infosys or TCS has a PE of 25, it means the stock is trading at a premium compared to the sector. Conversely, if another IT stock has a PE of 15, it may be considered undervalued relative to its peers.

• Higher PE doesn’t always mean better

To select PE is good or not you can check company valuation. Higher PE is not good for company because investors giving higher price compare to his valuation and on that price you can select other peer group company to invest and in reverse for low PE.

• A lower PE can indicate a good investment opportunity

At last What is good PE means if that stock PE ratio is less compare to his valuation or earning or peer group that means company PE is good to invest money for long term.

FINAL THOUGHT

A good PE ratio is not a fixed number but rather depends on the company’s valuation, earnings, and industry average. A stock with a PE lower than its peer group or intrinsic value may be a great long-term investment. Always compare before deciding!

If the stock market crashes, is investing in gold a safe alternative?

 Investing in gold is generally considered a safe alternative during a stock market crash. Here’s why, along with a detailed explanation:

✅ 1. Gold as a Safe Haven Asset

• Historical performance shows that investors tend to move their money into gold when stock markets crash due to economic uncertainty, geopolitical tensions, or inflation.
• This is because gold maintains its intrinsic value and is not directly tied to the earnings of companies like stocks are.

✅ 2. Low Correlation With Equities

• Gold often has a low or negative correlation with the stock market, meaning when stocks fall, gold may rise or at least hold steady.
• This makes it a valuable diversifier in a balanced portfolio, especially in times of financial turmoil.

✅ 3. Hedge Against Inflation & Currency Devaluation

• In a crash, central banks may print more money to stimulate the economy, which can devalue currencies.
• Gold acts as a hedge against inflation and currency depreciation, preserving purchasing power.

✅ 4. Global Demand & Limited Supply

• Gold has consistent demand across the world for jewelry, reserves, and investment.
• Its limited supply adds to its store-of-value appeal, especially when confidence in fiat currencies or financial systems is low.

⚠️ But Keep in Mind:

• Gold doesn’t generate income like dividends or interest.
• Its price can be volatile in the short term depending on investor sentiment and global events.
• It's best used as a part of a diversified portfolio, not as a replacement for all investments.

✅ Conclusion:

Yes, gold can be a safer investment option during a market crash, but it should be used wisely — typically forming 5% to 15% of a well-diversified portfolio. It won’t make you rich overnight, but it can protect your wealth during turbulent times.

Is it good to invest in stocks when the market is down?

 Hello Investors

Yes, investing when the market is down can be a very smart move — but only if done wisely. Here's why and how:

Why It’s Good to Invest in a Down Market:

• Stocks are Available at Discounted Prices

Market corrections and crashes often bring high-quality companies down to attractive valuations. It’s like buying the same product at a massive discount.

• Higher Potential Returns Over Time

Historically, those who invested during downturns (like 2008 or 2020) and held quality stocks saw significant gains when the markets recovered.

• Fear Creates Opportunity

When everyone is scared, good opportunities are often overlooked. As Warren Buffett says:
“Be fearful when others are greedy, and greedy when others are fearful.”

But Be Cautious — Not Careless:

-Don’t Invest Blindly
Just because a stock has fallen doesn’t mean it’s a good buy. Focus on fundamentally strong companies with good cash flow, low debt, and strong management.

-Use SIP or Staggered Buying
Don’t put all your money at once. Use Systematic Investment Plans or invest in parts over weeks/months to average out volatility.

-Avoid Penny Stocks or Speculative Bets
Falling markets can tempt you to take risks. But this is the time to be conservative and thoughtful, not impulsive.

• Crash Investing Toolkit:

Pick 3–5 strong, debt-free companies
Use SIP mode or staggered entry
Keep 20–30% cash for deeper dips
Monitor news but don’t react emotionally
Have a long-term horizon (1–3+ years)

Final Thoughts:

Yes, it’s good to invest in down markets — if you have patience, discipline, and a strategy.
Don’t try to time the bottom. Start small, focus on quality, and think long-term. Crashes don’t last forever — but your gains from smart investments can.

Thank you for reading. invest wisely and trade smart…. !!

What's the biggest mistake that stock market investors make?

 One of the biggest mistakes stock market investors make is letting emotions control their decisions. Emotional investing often leads to panic selling during market dips and reckless buying during bull runs — both of which can derail long-term wealth creation.

Here are a few common emotional and strategic mistakes that investors often fall prey to:

1. Trying to Time the Market

Investors often think they can buy low and sell high, but even professionals rarely time the market perfectly. A study by JP Morgan showed that missing the 10 best days in the market over 20 years can reduce your returns by over 50%.
The market rewards patience, not prediction.

2. Investing Without a Clear Plan

Many people invest without understanding their goals, risk appetite, or time horizon. They end up reacting to short-term news or social media hype, which causes inconsistency in their portfolio performance.

3. Neglecting Risk Management

A lack of diversification, no stop-loss mechanism, and overexposure to one stock or sector are classic examples. Risk should be calculated and controlled — not ignored.

4. Following the Herd (FOMO)

Fear of Missing Out (FOMO) drives many to chase hot stocks or IPOs without research. This leads to buying high and panic-selling when things go south.
Warren Buffett famously said, "Be fearful when others are greedy, and greedy when others are fearful."

5. Lack of Research

Investing based on WhatsApp tips, Twitter threads, or YouTube videos — without checking financial statements, company fundamentals, or valuations — is more like gambling than investing.
In contrast, successful investors focus on:

• Financial statements
• Growth forecasts
• Ratio analysis
• Price trends and technical indicators
• Industry and macroeconomic trends

6. Impatience

Markets reward those who stay invested over time. But many investors sell too soon, especially after modest gains. The magic of compounding only works when you give your investments time to grow.

Final Thought:

The stock market is a powerful tool for wealth creation — but only for those who treat it with discipline, patience, and respect. The biggest mistake investors make is not understanding that investing is a marathon, not a sprint. Letting emotions dictate your decisions, chasing tips, or expecting overnight success will only lead to disappointment..

Investing isn’t about luck — it’s about making informed decisions consistently over time.

Thank you for reading. invest wisely and trade smart…. !!

How do foreign institutional investors (FIIs) impact Indian stock markets?

 

Foreign Institutional Investors (FIIs) are large investors from outside India, such as global banks, mutual funds, insurance companies, pension funds, and hedge funds. These institutions invest huge amounts of money in Indian stocks and bonds, and their actions have a significant influence on the Indian stock market.

When FIIs start buying in large quantities, it usually pushes the market up because of the strong demand they create. On the other hand, if they begin selling and withdrawing money, it often leads to market declines. This is because FIIs handle massive capital, and their movements create a ripple effect in the market. Their investments also bring in liquidity, meaning more cash is available in the market, which makes trading smoother and helps maintain fair stock prices. Without such liquidity, the market could become slow or choppy.

FIIs also influence the value of the Indian rupee. When they invest, they convert foreign currency into rupees, which increases the demand for the rupee and makes it stronger. But when they pull money out and convert rupees back to dollars or euros, the rupee can weaken. This movement not only affects currency value but also plays a role in inflation and India's import-export costs.

In addition to price and currency movements, FIIs influence investor sentiment. Since they are seen as smart and well-researched investors, their buying activity builds confidence in the market. Retail and domestic institutional investors often follow their lead. FIIs also focus on specific sectors like banking, IT, FMCG, and pharma. When they invest heavily in a sector, it often outperforms others.

However, the market can also become volatile due to sudden changes in FII behavior, especially during global events like war, interest rate hikes in the US, or economic slowdowns. In such cases, FIIs tend to pull out quickly, causing sharp market corrections. This is why the Indian stock market is often called “FII-driven.”

For example, during the COVID-19 crash in March 2020, FIIs withdrew over ₹60,000 crore, leading to a market crash. But by late 2020 and throughout 2021, they returned with strong investments, helping the market reach new highs.

Currently, global interest rates, US inflation concerns, and geopolitical issues like tariff tensions are making FIIs cautious. However, India's stable political environment, digital growth, and economic reforms make it a long-term attractive destination for foreign investors. As a result, many FIIs are maintaining or increasing their investments, especially in infrastructure, manufacturing, and technology sectors.

In short, FIIs are key players in the Indian stock market. They affect prices, currency, liquidity, and investor confidence. Tracking their activity regularly through NSE, BSE, or financial websites like Moneycontrol can help you understand market direction and make smarter investment decisions.