Indian Financial Market - Debt

Indian stock market:

Debt:

“Debt” means debentures, the volume of the trade in debt market is very high value when compare to equity market in term of amount.

Debt are low risk with low volatilizes.

Debt instruments are contract between two people (I.e. lender and borrower)

One party lends money to another one pre-determined in terms of rate of interest to be paid by borrowers to lender, tenure of the people repayment and interest payment periodically.

In the Indian security markets, generally all use the terms as “bond” for debt instrument issued by central or state government and public sector organization and the term “debentures “for instrument issued by private corporate sector.

Features of bond:

Maturity, coupon and principal

In the market, maturity and term-to-maturity are used quite frequency.

Maturity:
Maturity of a bond refers to the date on which the bond matures, or the date on which the borrowers has agreed to repay the principal amount to the lender.

Term to maturity:
Term to maturity refers to the number of the years remains for the bond to mature.

Coupon:
Coupon rate refers to the periodic issue of payment that are made by the borrower to the lender a coupons are stated upfront either directly specifying the number (I.e. 18%) or indirectly tying with the benchmark rate.

Indian Financial Market - Equity

Indian stock market:

Equity:

Most of the people aware about the equity market in India (I.e. equity index like BSE, NSE) that the transaction happens on a daily basis with high volume and having high fluctuation in mean time return from equity market seem high returns over a period of long term.

Nowadays reach of equity market among population is very fast via media and the awareness of stock market reached across small towns in India.

India expecting very good growth rate in internet service providers for next five years, if it is so, all the villages will be connected via internet, then the transaction in equity will be reach with high volume.

Indian stock market @ Apr 09

Do you think, whether it’s right time to enter into the stock market?

Bse sensex ends with 11,403 points on April 29, 2009... most of the day traders felt that they missed the opportunities to buy stocks when sensex was at 8000 points, couple of months back.

then, who utilized the opportunities to earn within short period over 25%... at right time with right stock…

Matured investor - who had experience with stock market over 10 yrs and analyst with current scenario in Indian economy and foreign.

- will update soon