Top Sectors In India To Invest In 2011-2012 From The Economy Of India In Indian Stock Market

Top Sectors In India To Invest In 2011-2012 From The Economy Of India In Indian Stock Market

Falling prices may not be good for traders, but in stock market one's loss is somebody else's profit. Fallen down prices opens up opportunity for Investors to look out for the good, top and best sectors to Invest in 2011-2012 which compliments the growing Indian Economy. Year 2009-2010 has been a stunning year, but its time we look forward to the coming years.

In a fast growing economy like of India's, everyone wants to invest in Indian Stock Market. And why not? After all there are sectors related to the Indian growing Economy which provides tremendous investment and money-making opportunities. So before you start wondering which are those top sectors to Invest in 2011-2012, then hold your breath, we shall be discussing those shortly as you read on.

Identifying and buying the good companies and the right stocks from the top sectors of Indian Economy is no rocket science, but is still not a ball game. With thousands of companies to invest and choose from, royal rumble is not the way to go. Any company you choose to invest, just make sure that they have an outstanding business model, clean books, low debt and rising business revenues with a 5 year business growth plans.

I have finalized 7 sectors to Invest. Out of which two we are going to discuss now and rest to be followed in parts.

Automobile Industry - Most Well Placed

Indian Automobile Industry has seen a phenomenal growth in the past 20 years and is one of the core industry of the growing Indian Economy. This has happened due to a lot of positive factors like -

Friendly and favorable government economical policies Rise in Agriculture and Industrial Output Rise in per capita income (individual) Better Roads and Infrastructure leads to higher Auto demand Rising Middle Class and Working Class ( higher buying power) Availability of Easy Finance Schemes for purchasing Automotives

By 2016 the size of the Indian automobile industry is expected to grow by 13%, to reach a mark of USD $ 120-159 billion. Presently, India is the 2nd largest two-wheeler market in the world and fourth largest commercial vehicle market worldwide. India is the 11th largest market in the passenger car segment globally which is expected to become the 7th largest market by 2016.

Indian Economy is growing at a rate of little over 8.5% GDP and is expected to do even better in the time to come. Along a rising economy, rising middle class income, rising purchasing power, easy finance options at low-interest rates, all together is going to provide substantial growth to this sector by boosting demand for both two wheelers as well as four wheelers.

This makes the Indian Automotive sector one of the most promising sector to invest from the Indian Economy and Stock Market. Be with this sector for few years to come and you will make money.

Agriculture - The backbone of Indian Majority

Agriculture Sector inIndian Economy is one of the most significant part of India. The success story of Agriculture in India has been stated as example by the world leaders like U.S President Barack Obama.

Agriculture is the only way to make a living for almost 2/3rd of Indian population and our rural population which is a majority of total population completely depends on Agriculture. Indian Agriculture is the largest contributor to the Indian Economy and it also play an important role in the growth of socio-economic sectors of India.

History Of Agriculture In India - The Green Revolution

There was a time in history when India was largely dependent on food import, but since the food crisis in 1960, India has come a long way and has put a lot of efforts to be self-sufficient in the food and grains productions. The desire to be self-sufficient when it comes to food grains in India, it has led to a Green Revolution which is aimed to improve the agriculture activity and produce in India.

The services enhanced by the Green Revolution in the agriculture sector of Indian economy are as follows:

Acquiring more area for cultivation purposes Expanding irrigation facilities Use of improved and advanced high-yielding variety of seeds Implementing better techniques that emerged from agriculture research Water management Plan protection activities through prudent use of fertilizers, pesticides, and cropping applications

Indian Agriculture still depends heavily on monsoon as good rain during that season improves the agriculture output. But the entire year agriculture produce cannot possibly just depend on one season which opens up opportunity for setting up a second Green Revolution to overcome such restrictions and hurdles.

An increase in the growth rate and irrigation area, improved water management, improving the soil quality, and diversifying into high value outputs, fruits, vegetables, herbs, flowers, medicinal plants, and bio-diesel are also on the list of the services to be taken by the Green Revolution to improve the agriculture in India.

This eventually means growth and business prospects to the agriculture focused companies providing the much-needed solutions to improve what we call the back bone of the Indian Economy- i;e Agriculture in India. Be with it...

Happy Investing!

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Listing of Shares in Stock Market

Listing of Shares in Stock Market

Shares, before being offered to the market need to be listed on stock exchanges for the purpose of trading. Listing implies that the shares have been listed on the stock exchange and are available for trading in the secondary market. The process of listing on the stock exchanges is done within 7 days of finalization of issue. Usually, it takes around 3 weeks after the closure of the book-built issue for shares to get listed. In case of fixed-price issue, it would be around 37 days after the closure of the issue.

After the shares are listed, an investor can trade by opening a broking account with a registered stock broker and he can follow the usual procedure of placing an order for sale of the number of shares he wants to sell and also fix the price at which he wants them sold. It has been generally observed that there is a huge volatility in the market on the day at which shares gets listed with the prices getting public and the forces coming into play in bringing the shares down to a fair price in the secondary market.

The prices of the listed shares in the secondary market might or might not be higher than the offered prices. In case the prices are less after the shares get listed, you can always hold on to your stocks until the markets moves in a favorable direction again.

The companies that are willing to get their shares listed need to sign an agreement with the stock exchanges where the securities are listed. The agreement enforces certain rules and regulations on the company following the listing procedure and in case of violations of these, the stock exchanges have the right to impose monetary penalty against the concerned company and if needed may also decide to de-list the shares.

Listing of shares gives a company two added advantages: to gain access to risk capital and to make their shares more liquid by being traded in an open market. Companies also list shares because it is a common market trend that investors usually invest in listed shares because listed companies are subject to stricter requirements compared to unlisted companies and this fact provides extra confidence and security to investors in general.

Through listing of shares, companies can expand their investor base and gain access to risk capital. That generates finance aiding in the continued growth of the company. Moreover listing provides up-to-the-minute pricing of the company's shares that is beneficial for the existing shareholders and makes it easier to offer shares keeping in mind future acquisitions. Listed companies are known to attract more favorable terms and conditions in the credit market.

Listed shares also enjoy more hype through media coverage and broking firms and that creates more credibility for the shares. This leads to higher demands for the shares and higher valuation for the company. Listing the company on the stock exchange gives the shareholders an access to an efficient, regulated market place, which is considered an optimal arena for share trading. Listing also improves liquidity and ensures correct pricing of the company shares.

Listing also enables employees to become shareholders. This can be arranged through various types of share purchase and share option schemes. Listed companies are subjected to regulatory requirements and hence show greater transparency and regular reporting. With all the above-mentioned benefits, no doubt listed companies or companies with listed shares attract greater number of shareholders.

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