Showing posts with label Stock Trading. Show all posts
Showing posts with label Stock Trading. Show all posts

Artha Bharat Launches Artha Global Multiplier Fund for NRIs to Invest in U.S. Stock Market

Artha Bharat Launches Artha Global Multiplier Fund for NRIs to Invest in U.S. Stock Market
Artha Bharat Investment Managers IFSC LLP, a premier alternative investment firm backed by renowned fund managers Sachin Sawrikar and Nachiketa Sawrikar, has launched the Artha Global Multiplier Fund — a long/short hedge fund designed to help NRIs (Non-Resident Indians), OCIs (Overseas Citizens of India), PIOs (Persons of Indian Origin) and Foreign investors gain strategic exposure to the high-growth U.S. equity markets.

The U.S. stock market represents nearly 74% of the MSCI World Index and has consistently outperformed Indian markets over long investment cycles,” said Sachin Sawrikar, Managing Partner at Artha Bharat Investment Managers IFSC LLP. “This fund empowers global Indians to invest in the world’s largest and most dynamic equity market — the United States — through a diversified, professionally managed strategy.

The Artha Global Multiplier Fund is a hedge fund for NRIs that invests in liquid U.S. equities, event-driven strategies, and derivatives. It focuses on six major U.S. market themes:
  • Technology and Retail
  • Consumer Staples & Discretionary
  • Artificial Intelligence (AI) & Innovation
  • Financial Services Healthcare & Biotechnology
  • Renewable and Clean Energy
Consumer spending drives 70% of the U.S. GDP, making it a resilient and lucrative segment. This fund will actively target companies benefiting from strong consumer trends,” added Sachin Sawrikar.

Nachiketa Sawrikar, the fund’s manager, brings over 24 years of global finance experience, including leadership roles in U.S.-based firms and Indian fund houses. An IIM Ahmedabad MBA, Osmania University engineer, and CFA charterholder, he has deep expertise in U.S. markets.

“The Artha Global Multiplier Fund aims to generate absolute returns regardless of market direction by leveraging opportunities in equity stocks, index futures, and CBOE Volatility Index (VIX) futures,” said Nachiketa. “We use derivatives not only to amplify gains but also to limit downside risk.”

With leverage ranging from 50% to 150%, the fund is structured for sophisticated investors, not retail participants. Artha Bharat has back-tested its strategy to ensure robust performance and capital protection.

Artha Global Multiplier Fund is positioned as a smart, diversified investment solution for Indians abroad seeking access to U.S. stock market growth, with institutional-grade risk management and sectoral insights.

The scheme will be subject to a 2% management fee and 20% share of investment management company on returns above the 10% hurdle internal rate of return.

How to Open a Demat Account in India: A Step-by-Step Guide

How to Open a Demat Account in India: A Step-by-Step Guide

Investing in the stock market requires a safe place to store your dematerialised shares and securities. This is where a Demat account becomes necessary. When you open a Demat account, you create electronic storage for your financial holdings, making trading easier and more secure.

What is a Demat Account?

A Demat (or dematerialised) account lets you keep a variety of holdings including shares, bonds, government securities, mutual funds and ETFs in an electronic, paperless manner. Your investments are easier to manage and more safe in the digital format.

How a Demat Account Works

A Demat account is opened through a Depository Participant (DP), which connects you to depositories like NSDL or CDSL. Your Demat account is linked to your bank account for fund transfers when you buy or sell securities.

When buying shares, they get credited to your account after settling the trade. Similarly, when selling shares, they are debited from your account, creating a seamless electronic transfer system.

Step-by-Step Process to Open a Demat Account

Step 1: Choose a Depository Participant

Select a reliable DP based on its reputation, service quality and charges. Your bank, stockbroker, or financial institution may offer this service.

Step 2: Fill Out the Application Form

Visit the DP's website and complete the opening form with your personal details like name, contact information and address.

Step 3: Provide Bank Details

Enter your bank account information to receive dividends and other investment payouts. This ensures your earnings are deposited directly into your account.

Step 4: Submit Required Documents

Upload scanned copies of all mentioned documents to verify your identity and address. These are required to complete your account verification process.

Step 5: Complete KYC Verification

Undergo the Know Your Customer process, which may include in-person verification through video or by showing original documents.

Step 6: Sign the Agreement

Review and sign the DP-client agreement that outlines the terms, conditions and obligations of maintaining a Demat account.

Step 7: E-Sign Authentication

Most DPs allow digital signatures using your Aadhaar-linked mobile number for a paperless process.

Step 8: Account Activation

Once your account has been verified, it will be activated, and you will be sent your unique Demat account number and login information.

Documents Required to Open a Demat Account

  1. PAN Card
  2. Address proof (Aadhaar card, passport, driving license, or recent utility bill)
  3. Identity proof (Aadhaar card)
  4. Passport-size photographs (only for offline Demat account opening)
  5. Bank statement or passbook copy
  6. Cancelled cheque
  7. Income proof (for currency/derivative trading)

Important Considerations Before You Open a Demat Account

  • Brokerage and fees: Compare transaction charges, annual maintenance fees and other costs between different brokers before choosing.
  • Trading platform: Look for easy-to-use interfaces with reliable performance and helpful trading tools.
  • Security measures: Ensure your broker offers two-factor authentication and other protection for your investments.
  • Customer service: Check the broker’s support hours, communication channels (phone, email or live chat) and response times for assistance.
  • Broker's reputation: Research existing customer reviews and the broker’s market reputation. Choose established brokers with positive customer feedback.

Conclusion

These days, opening a Demat account is easy and mostly digital. It only takes 15 to 20 minutes. By following the steps outlined above, you can safely open a Demat account and begin your investment journey in the stock market. For the best experience, choose a trustworthy DP with affordable fees and excellent service.

NSE Crosses 22 Crore (220 Million) Total Investor Accounts

NSE Crosses 22 Crore (220 Million) Total Investor Accounts

The National Stock Exchange of India marked another milestone in April 2025, with the total number of investor accounts i.e., Unique Client Codes (UCCs) surpassing 22 crore (220 million), a sharp increase within just six months of crossing the 20-crore mark (200 million) in October 2024.

Separately, the number of unique registered investors stands at 11.3 crore (As of March 31st, 2025), having crossed the 11 crore (110 million) mark on January 20th, 2025.

An investor may maintain accounts with different brokers, resulting in multiple client codes. Maharashtra leads with the highest number of investor accounts at 3.8 crore, followed by Uttar Pradesh (2.4 crore), Gujarat (1.9 crore), and Rajasthan and West Bengal at approximately 1.3 crore each. Together, these states account for nearly 49% of total accounts, while the top ten states contribute roughly three-fourths of the overall count.

The benchmark Nifty 50 Index has delivered a strong 22% annualized return over the past five years while Nifty 500 Index has delivered a 25% annualized return, demonstrating significant wealth creation for investors during this period. NSE’s Investor Protection Fund (IPF), increased by over 23% year-on-year to Rs 2,459 crore as of March 31, 2025.

Shri Sriram Krishnan, Chief Business Development Officer, NSE said, “India’s investor base continues to expand rapidly, with over 2 crore new accounts added in just six months—a clear reflection of strong investor confidence in India's growth trajectory despite global economic headwinds. This surge has been driven by accelerated digital transformation and the increasing adoption of mobile trading, which have made capital markets more accessible to investors across tier 2, 3, and 4 cities. The growth also highlights the success of focused initiatives to deepen retail participation, including widespread financial literacy programs and streamlined KYC processes. As participation broadens across a range of instruments— Equities, ETFs, REITs, InvITs, and Bonds—this milestone signals a maturing financial ecosystem where technology is playing a pivotal role in democratizing investment opportunities.”

Infosys' Insider Trading Involving An Ex-Employee: SEBI Seizes ₹2.6 Crore and Ban Two

Infosys' Insider Trading Involving Ex-Employee, SEBI Seizes ₹2.6 Crore and Ban Two

The Securities and Exchange Board of India (SEBI) has reportedly banned two individuals, Keyur Maniar and Ramit Chaudhri, for insider trading involving Infosys stock. SEBI has ordered the disgorgement of ₹2.6 crore in illegal gains and imposed a penalty of ₹30 lakh on each of them.

Maniar was found to have traded based on unpublished price-sensitive information (UPSI) related to a strategic partnership between Infosys and Vanguard. Ramit Chaudhri, a former Infosys employee, was fined for passing on this sensitive information.

SEBI issued a final order on January 31, 2025, mandating Keyur Maniar to disgorge over ₹2.6 crore in illegal gains made from insider trading involving Infosys shares. SEBI also imposed a fine of ₹30 lakh on Maniar and banned him from participating in the securities market for one year.

Maniar, an associate of former Infosys employee Ramit Chaudhri, traded based on unpublished price-sensitive information (UPSI) related to a strategic partnership between Infosys and Vanguard. Chaudhri was fined ₹30 lakh and barred from the securities market for a year for passing on the sensitive information.

The partnership between Infosys and Vanguard was announced on July 14, 2020. SEBI's investigation found that Chaudhri had access to inside information about the deal and shared it with Maniar, who then traded in Infosys stock before the announcement.

SEBI's surveillance system detected suspicious trades by the two individuals, leading to an interim order in September 2021, which was later confirmed in December 2021. The case was challenged in the Securities Appellate Tribunal (SAT), which allowed SEBI to keep the alleged unlawful gains in an escrow account until a final decision was made.

In the final order, SEBI directed Maniar to disgorge the illegal gains along with a 12% annual interest from July 2020 until the date of the deposit. Chaudhri, although not found guilty of insider trading, was penalized for disclosing the unpublished information.

Notably, in mid of last year, Infosys CEO and MD, Salil Parekh, had too settled insider trading charges with SEBI. He paid ₹25 lakhs for violating provisions of insider trading, which too was about Infosys and Vanguard partnership. 

Another notable case of insider trading involving Infosys shares occurred in 2020. In this instance, SEBI found that Pranshu Bhutra, a Senior Corporate Counsel at Infosys, and Venkata Subramaniam VV, a Senior Principal in the Corporate Accounting Group, along with six other entities, were involved in insider trading.

The case revolved around Infosys' quarterly results, which were announced on June 29, 2020. The entities traded in the futures and options (F&O) segment before the announcements and made significant gains.

This case, like the recent one, underscores the importance of adhering to insider trading regulations to maintain market integrity. It underscores the importance of market integrity and the consequences of insider trading.

10 Companies With Maximum Upper Circuits in 2024

10 Companies With Maximum Upper Circuits in 2024

Upper circuits indicate strong sentiments from investors along with potential growth opportunities. Naturally, shares in their upper circuit appeal to market watchers. We have curated this list of 10 popular companies that have consistently hit upper circuits. Based on your investment strategy, you may consider including some of them in your portfolio.

Companies with Shares with Upper Circuit to Check Out

If you are looking for a consistent growth trajectory, look out for these shares with upper circuit (as of Sept 2024).

1. Radico Khaitan
  • CMP: 2,002.85
  • Market Cap: INR 26,794 crore
Radico Khaitan is a leading player in the alcoholic beverages industry in India. It is known for its premium brands like Magic Moments vodka and 8 PM whisky. The company has attracted investors consistently with its robust distribution network and innovative marketing strategies.

2. PNB Housing Finance
  • CMP: INR 990.70
  • Market Cap: INR 25,220.19 crore
PNB Housing Finance is a prominent name in the Indian housing finance sector. The shares of this company have been consistently rising in value, thanks to the company’s focus on affordable housing. It has disbursed large volumes of loans to property buyers in the last few months.

3. Netweb
  • CMP: INR 2,772.40
  • Market Cap: INR 15,321 crore
A prominent player in the IT services sector, Netweb Technologies has been gaining traction with its innovative solutions and expanding global footprint. It specializes in cloud services, data analytics, and cybersecurity. In recent years, the company has positioned itself as a leading business rapidly expanding its digital infrastructure.

4. Dalmia Sugar
  • CMP: INR 474.15
  • Market Cap: INR 3,827 crore
Dalmia Sugar is a leading company in the sugar and ethanol industry. In recent months, it has benefited significantly from favorable government policies and rising demand for ethanol-blended fuels.

5. Swaraj Engines
  • CMP: INR 3,332.45
  • Market Cap: INR 4,062.4 crore
Swaraj Engines is a top manufacturer of diesel engines for agricultural applications. It has shown a strong growth trajectory, focusing on innovation and quality. The company has built a loyal customer base among farmers. With its strategic partnerships and commitment to sustainability, it has strengthened its market position.

6. Chola Invest
  • CMP: INR 1,486.30
  • Market Cap: INR 1,24,946 crore
This company has established itself as a leading player in the NBFC sector. It offers a wide range of financial products, including vehicle finance, home loans, and SME loans. The prudent risk management practices of the company and strong relations with customers led to its impressive growth.

7. Bansal Wires
  • CMP: INR 438.70
  • Market Cap: INR 6,762 crore
One of the leading manufacturers of high-quality wires and cables, Bansal Wires has witnessed a surge in demand due to growing construction activities in India. With the growth of infrastructure, the company has shifted its focus on product innovation and expanding into new markets.

8. Geojit Fin
  • CMP: INR 151.21
  • Market Cap: INR 3,253.56 crore
Geojit Financial Services is a leading brokerage firm, leading the financial service sector in India. Incorporating advanced technologies, it significantly enhances customer experience.

9. Arihant Capital:
  • CMP: INR 94.09
  • Market Cap: INR 986 crore
An established investment advisory firm, Arihant Capital has progressed rapidly with its client-centric approach and comprehensive financial services. Its growth is driven by its focus on research-driven investment strategies and personalized advisory services.

10. Indiabulls Ent.
  • CMP: INR 13.17
  • Market Cap: INR 275 crore
Although this company has a limited market capitalization, it has made waves in the stock market with its diverse business interests. It ranges from real estate to financial services. The strategic moves of the company, including divestments and new ventures, led to its strong performance in 2024.

Conclusion

While several other companies have hit upper circuits in 2024, we have shortlisted only the ones with strong growth potential. This consistency reflects the confidence of investors and strong business fundamentals.

While these stocks have a good growth potential, it is very important to analyse their fundamentals and technicals using a good stock market app that can help you make informed decisions. Happy Investing!

Tata Power to Delist From Luxembourg Stock Exchange

Tata Power to Delist From Luxembourg Stock Exchange

Tata Power has decided to delist its Global Depository Shares (GDS) from the Luxembourg Stock Exchange. The decision was made due to the lack of activity in these shares over the past several years. This move is expected to simplify the company's financial reporting requirements and reduce administrative costs.

As of March 2024, the business held 362 depository shares, which were issued to Citibank NA in 1994.

In an exchange filing on Tuesday, the business stated that its Board of Directors evaluated and authorised the termination and delisting of its Global Depository Shares program.

According to the company, the GDSs program and its partnership with Citibank will be terminated due to a lack of activity in recent years, which will simplify the Company’s financial reporting requirements and reduce administrative costs.

Global Depository Shares (GDS) are a type of financial instrument used to facilitate the trading of a company’s shares in international markets. They represent shares in a foreign company and are typically listed on a stock exchange outside the company’s home country.

The GDS of Tata Power have seen minimal trading activity over the years, making it less beneficial for Tata Power to maintain the listing.

Delisting will help Tata Power reduce administrative and compliance costs associated with maintaining the listing on the Luxembourg Stock Exchange.

NSE Warns Investors Against Deepfake Videos of Its CEO Recommending Stocks

NSE Warns Investors Against Deepfake Videos of CEOs Recommending Stocks

The National Stock Exchange (NSE) has issued a warning to caution investors, advising them to be wary of deepfake videos featuring its chief executive offering stock recommendations. These videos appear to have been created using advanced technologies to mimic the voice and facial expressions of NSE CEO Ashishkumar Chauhan.

"We have observed the use of face / voice of Shri Ashishkumar Chauhan, PID & CEO NSE and NSE logo in a few investment and advisory audio and video clips falsely created using technology," said NSE in an official press release.

NSE officials are not authorized to endorse or engage in any stock-related activities. This alert comes amid a backdrop of thriving equity markets and a surge in retail investor participation. Regulators have expressed concerns about the potential misuse of social media platforms by financial influencers to attract investors. Remember to verify information from official sources and exercise caution when encountering investment advice online.

Such videos seem to have been created using sophisticated technologies to imitate the voice and facial expressions of Shri Ashishkumar Chauhan, PID & CEO of NSE.

Investors are hereby cautioned not to believe in such audio and videos and not follow any such investment or other advice coming from such fake videos or other mediums. It may be noted that NSE’s employees are not authorised to recommend any stock or deal in those stocks.

Additionally, NSE makes efforts requesting these platforms to take down these objectionable videos, wherever possible.

As per NSE’s process, any official communication is made only through its official website www.nseindia.com, and the Exchange’s social media handles - Twitter: @NSEIndia, Facebook: @NSE India, Instagram: @nseindia, Linkedln: @NSE India, YouTube: NSE India.

Everyone is requested to verify the source of communication and content which is sent out on behalf of NSE and to check the official social media handles.

All investors are requested to take note of the same and verify the information coming from NSE or its officials from its website www.nseindia.com as the official information.

Investors & the public at large are advised to take note of the above.

 

5 Tech Stocks with Strong Fundamentals for 2023

5 Tech Stocks with Strong Fundamentals for 2023

The technology sector is one of the most important sectors in India after Agriculture. This is because it provides huge employment and has played a major role in increasing the export revenue of India.

India is a world leader when it comes to technology as it is the largest IT service provider. With so many achievements it's obvious technology stocks are always good to invest in.

If you are into online investing then in this article we will provide you with the 5 best tech stocks to invest in 2023. These are the stocks with strong fundamentals.
 
5 Best Tech Stocks with Strong Fundamentals to Invest in 2023

There are so many popular IT companies in India listed on the stock markets that one may get confused about where to invest. Here is a list of 5 tech stocks to invest in 2023.

Tata Consultancy Services (TCS)

TCS is a Tata group company and has its headquarters in Mumbai. It is the largest IT Company in India by market capitalization. The company is mainly involved in IT products and services, consultancy services, business process outsourcing, digital transformation, etc.

TCS share price is currently trading near ₹3,331 in NSE (as of 16th Mar 2023). The market cap of TCS is around ₹11.77 lakh crore (as on Mar 2023).

Infosys

Infosys is the NYSE listed company founded in 1981. It is the second-largest IT Company in India. It’s mainly involved in the business of global business consulting, outsourcing, IT services, digital marketing, blockchain etc.

Infosys share price is currently trading near ₹1,423 in NSE (as of 16th Mar 2023). The market cap of Infosys is around ₹5.89 lakh crore (as on Mar 2023).

HCL Technologies

HCL Technologies is one of the top IT services companies in India. It is mainly involved in software services, cloud services, digital services, cybersecurity etc. It has more than 2,22,000 employees and serves clients in around 60 countries of the world.

HCL share price is currently trading near ₹1,085 in NSE (as of 16th Mar 2023). The market cap of HCL technologies is around ₹2.94 lakh crore (as on Mar 2023).

Wipro

Wipro is a leading technology service and consulting company in India. It has more than 2,50,000 employees serving around 66 countries all over the world. The company is mainly involved in IT services, consulting, outsourcing, re-engineering and maintenance etc.

Wipro share price is currently trading near ₹378 in NSE (as of 16th Mar 2023). The market cap of Wipro is around ₹2.08 lakh crore (as on Mar 2023).

TechMahindra

TechMahindra is a part of Mahindra Group which was founded in 1945. The company is mainly involved in IT services and solutions. It offers services of SAP Oracle, BPO, network services, testing services, integrated engineering solutions etc. It caters to various industries like banking, financial services, insurance, energy, manufacturing etc.

Tech Mahindra share price is currently trading near ₹1,121 in NSE (as of 16th Mar 2023). The market cap of Tech Mahindra is around ₹1.08 lakh crore (as on Mar 2023).

Conclusion

In this article, we went through the 5 best tech stocks with strong fundamentals. These are the top IT companies in India and are also leading at the global level. By investing in these companies you can expect higher returns.

NSE to Set Up Social Stock Exchange (SSE) As A Separate Segment

NSE to Set Up Social Stock Exchange  (SSE) As A Separate Segment

National Stock Exchange of India (NSE) received in-principle approval from the Securities Exchange Board of India (SEBI) on December 19, 2022, to set up a Social Stock Exchange (SSE) as a separate segment of the NSE.

Earlier, Hon'ble Finance Minister, Smt. Nirmala Sitharaman, in her Union Budget speech of 2019-20 had proposed creation of a Social Stock Exchange, under the regulatory ambit of Securities and Exchange Board of India (SEBI) for listing social enterprises and voluntary organizations working for the realization of a social welfare objective, so that they can raise capital as equity, debt or as units like a mutual fund.

Government of India, through gazette notification has declared a new security “Zero Coupon Zero Principal (ZCZP)” under the Securities Contracts (Regulation) Act, 1956. The new instrument ZCZP can be publicly or privately issued by Not for Profit (NPO) upon registering with the Social Stock Exchange segment of NSE to raise funds subject to fulfilment of eligibility criteria. Currently the regulations have prescribed the minimum issue size as Rs 1 crore and minimum application size for subscription at Rs 2 lakhs. Subscription to the ZCZP would be like a philanthropic donation.

Shri Ashishkumar Chauhan, MD & CEO, NSE said: “NSE has always played a pivotal role in capital formation for the country. We are working towards the launch of Social Stock Exchange as a segment on NSE. We believe this platform will immensely benefit the social enterprises contributing to the Sustainable Development Goals.”

About National Stock Exchange of India Limited (NSE):

National Stock Exchange of India (NSE) is the world’s largest derivatives exchange by trading volume (contracts) as per the statistics maintained by Futures Industry Association (FIA) for calendar year 2021. NSE is ranked 4th in the world in the cash equities by number of trades as per the statistics maintained by the World Federation of Exchanges (WFE) for calendar year 2021. NSE was the first exchange in India to implement electronic or screen-based trading. It began operations in 1994 and is ranked as the largest stock exchange in India in terms of total and average daily turnover for equity shares every year since 1995, based on SEBI data. NSE has a fully integrated business model comprising exchange listings, trading services, clearing and settlement services, indices, market data feeds, technology solutions and financial education offerings. NSE also oversees compliance by trading, clearing members and listed companies with the rules and regulations of SEBI and the exchange. NSE is a pioneer in technology and ensures the reliability and performance of its systems through a culture of innovation and investment in technology.

For more information, please visit: www.nseindia.com

Vested Finance, a Platform That Allows Indians to Invest in US Market Witnesses Increased Interest in Global Investments in 1h21

Mr. Viram Shah, Co-Founder and CEO, Vested Finance

Tesla continues to be the investor favorite followed by Apple, Microsoft and Amazon

Mumbai, August 05, 2021- Vested Finance, an online investment platform that enables Indian investors to invest in the US stock market, has observed a variety of investing behaviors and patterns from Indian investors on their platform for the first half of the year, 2021.

Vested Finance has seen 80% growth in their user base during the first half of 2021. The company has seen consistent market affinity towards technology stocks. In terms of number of trades, Tesla continues to be the investor favorite followed by Apple, Microsoft and Amazon. Interestingly however, the overall percentage of Vested Finance customers owning Tesla shares dropped from 11.5% at the start of the year to 9.2% by June 2021, indicating that new users on the Vested platform were not so gung-ho about Tesla.

At the same time, the market has witnessed some unusual trends including a massive influx into meme stocks such as GameStop and AMC Entertainment Holdings. AMC ended the H1 in the top 10 most popular stock on the platform and is still held by 0.9% of Vested Finance users. Following the crypto currency momentum, Coinbase was the first crypto exchange to be listed on the stock exchange and was another stock that was quick to become an Indian investor favorite post their IPO in April 2021. It is the 10th popular stock purchased on the Vested platform and is held by 1.3% of the Vested customers, till today.

Mr. Viram Shah, CEO and Co-Founder, Vested Finance said, “Global Investments have gained momentum in the last couple of years. The awareness around brands combined with tech IPOs are bringing more and more people to our platform. Indians who are avid consumers of these global brands have now started investing in them to build their wealth. We are still in early days in terms of global diversification from India. As investor awareness grows and as technology makes the investing journey simpler, we will see more and more investors diversify their portfolio internationally through Vested.”

Other than investing in specific stocks directly, Indian investors have also shown interest in ETFs. ARK ETFs continue to be a popular choice among Indian investors. ARKK, the innovation focused ETF and ARKG, the Genomics focused ETF are both consistently in the top 10 ETF choices as investors look to invest into emerging themes.

The S&P 500 (VOO) and Nasdaq 100 (QQQ) index ETFs are common choices along with VGT, Vanguard’s Technology Focused ETF. IAU, the Gold ETF and VYM, Vanguard’s High Dividend Yield ETF are two popular choices as well.
About Vested Finance

Vested Finance is a California-headquartered U.S. Securities and Exchange Commission (SEC) Registered Investment Advisor (RIA) that provides an online investment platform that enables Indian investors to invest in the US stock market. The company’s mission is to enable sustainable wealth creation by allowing local investors to go global. They have also partnered with DriveWealth, a well-reputed SEC-registered broker in the US. This broker serves clients in 150 countries and is a member of the Securities Investor Protection Corporation (SIPC), which insures securities in their customers’ accounts up to USD 500,000.

A Closer Look At High Volume Stocks And Their Pros And Cons

You need to be competent, experienced, and informed before taking the risk of investing in the high-volume stocks of a company.

There could be a big brand MNC selling a million stocks each day, whereas there could be a few companies with not even a single stock sold in a day. 

There is a misconception that high-volume stocks are better to trade than low-volume stocks. The high volume of stocks of a company only matters if it induces a shift in the prices, thus triggering low volatility.

This could mean profit. But it is not the case in all high-volume stocks. For many companies, it just remains a number.

With the help of Stock trading api, you can understand how and why the volumes of stocks of a few companies are higher than the others. Movies like wolf of wall street shows making money including trading on illegal inside information taken through a ruthless and greedy corporate raider, however online trading bypass such things and one can rely on credibility of stocks trade made online.

Apart from that, a few features can help you out:

Features To Identify Which Stocks Can Be Bought In High Volume:
  • To buy high-volume stocks, you must study the stocks that have risen to a great extent since the previous day.
  • Cautiously look at the internet message boards and use an effective software platform with technologically upgraded scanning tools.
  • You must research the fundamental value of the company before investing in its large pool of stocks.
  • Technical analysis is equally important, which means reviewing the indicators of the stock’s chart.
  • Always maintain an analysis software to delve into better research and analysis of stocks, as technology is surely better than humans in doing so.
  • Always rely on your most preferred patterns and indicators.

Ultimately, you are responsible for making the most of high-volume stocks; the software is merely there for knowledge and assistance. So trade at your own discretion.



You must consider the following factors before investing in high volume stocks of a company:

  • What is the in-depth meaning of numbers and patterns?
  • Is the volume we are looking at a possible trap?
  • Is this a good trading opportunity?

The Pros Of Stocks With High Trading Volumes

1. Low Volatility

There are basically two sides of the trade - the right and the wrong side. Of course, being on the right side means garnering better profits. 

The common assumptions are that an elevated volume of stocks means that many people are interested in investing in the company. They are trying to buy or sell the stocks in the hope of making money. 

A large extent of money floating in the market means a huge move in the price can be expected. This eventually means low volatility, a favorite among traders. 

Thus, buying a higher volume of stocks can result in a higher return on investment.

2. Better Liquidity

There are many indicators of good trade, and volume is just one of them.

Look out for contracts with bigger organizations, press releases, new product launches, and earnings announcements to profit from high volume stocks. 

With a high volume, you can get your orders filled faster at a considerable price as such orders do not affect the market stock price. 

Possessing high volume stocks of a company, driving a speeding share price can be a great situation. Your high volume of stocks can be bought and sold without directly affecting the stock’s price. 

This provides liquidity, which can help you make profits or avoid losses, even in a difficult trade situation.

3. Lower Difference Between The Bid Price And The Price Asked

Since the variance in both the spreads is low, there is a lower gap between the bid and the demanded price of stocks. 

This clearly signifies a better movement in the stock market of easy buying and selling of stocks for investors.

4. Long Term Investment

If a huge number of stocks are kept handy, this means that you can often trade on them or just retrieve the stocks as a long term investment. 

With factors such as volatility, inflation, market price, and the company's credibility, the prices can shoot up with time. Such huge investments can eventually result in high profitability.

The Cons Of Stocks With High Trading Volumes

1. Carry A Higher Risk

High volume stocks could carry a high level of speculation and could be ambiguous in nature. Only if the stocks that have been bought in large number, taking off at a good price, the situation can be beneficial for you.

However, in the case of an unknown company, where there is a higher risk, the opposite can happen, resulting in huge losses and a wide variation in prices.

2. Low Demand

There are times when value investors find it more alluring to invest in low-volume stocks, attaching a better value to it, which are also anticipated to increase in the long run. 

An inexpensive and stray stock may catch more attention of investors, which could have great potential in the coming years. Thus, the opportunities created for high volume stocks could be on the lower side.

3. Manipulative Stock Players

Many bears and bulls in the market can play with a market situation. Bulk buying and selling normally induces manipulations within the trade market. 

A sudden spike in the price or an abrupt shelling out of the same stocks can be instigated by other investors, leading to huge losses.

4. Poor Reputation Of The Company

If a company's goodwill, credibility, and reputation are adversely affected, it will clearly be revealed through a huge drop in the stocks. This translates to a huge loss for high volume traders.

Conclusion

The volume of stocks is just one of the indicators that evaluate whether an investment in high-volume stocks can be profitable or not. 

Other factors include rigorous analysis, stock quote api, investment strategies, fundamental and technical approaches towards investing in stocks, and consulting a professional financial advisor. 

But a considerable volume of stocks helps you understand the path of the stock market by analyzing the movement of prices regarding its stock volume. 

Beware of a situation when there is a sudden gush in the stock volume after a low volume phase, as this could mean good or bad news. 

A sudden surge or drop in prices can indicate a major shift in the stock market, which will advantageously or disadvantageously affect your high volume stock trading.

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