Investing in Share Markets in India, Investing stock Markets in India

With rapidly changing economic equation, the developing nations like India, China, Singapore, Malaysia, Russia, Brazil et cetera are all set to steal the focus of investors from USA & Europe. No wonder that these new economic powers are growing very fast and tables will be shifted sooner than later. USA is suffering from economic recession and Federal Reserve is confused on whether to increase the interest rates and keep inflation under check or to reduce the rates and help economy grow. There isn't much hope left there and so, the big investors have already started investing money in developing countries like India. Hence it makes lot of sense in investing in these emerging economies.

The safest way for a retail investor to benefit from this growth is by investing in Global Emerging Economy Funds offered by many mutual fund companies. However, if one wants to invest directly in stock markets then one need to be extra cautious because even though these countries are growing fast and will continue to grow, there are many stocks that won't give good returns and some may even result in complete loss of capital.

If you ask me, I will advise to invest only in large cap companies with lots of capital, investor friendly promoters, good management & business model. These are the companies that will benefit the most. Mid cap, small cap and penny stocks stories look tempting considering their low price and high targets speculated by punters and operators but there is high level of risk involved and so, investing in these stocks is not advisable for retail investor who also has to work in office and look after his family.

Further, one should not buy a stock on the basis of a tip given by a broker. Rather one should sell on the news and buy on correction.

Also, once you have bought a stock after doing sufficient research, then you must not sell the stock in hurry if it falls by 5-10%. Stick to your selection and reap rich benefits.

Checkout our discussion forum Bazaar Live Tips for some great selection of stocks. Also, join in discussions in the forum to contribute your knowledge of few calls from your broker's research reports.