What is the meaning of Bearish Trend in financial markets?

Bearish Trend is an overall pessimist trend in the financial markets. It is a downward trend seen in prices of the stocks of the industry or a widespread fall in the broad market indices. There is a fall in prices of about 20% which leads to heavy pessimism by the investors. Investors are said to

What is the meaning of Categories in financial markets?

Categories in financial markets refer to various asset classes where investors can invest e.g. debt instruments, equity instruments, mixed portfolio etc. They are usually classified as an equity fund, debt fund, hybrid funds etc. Equity funds can be further classified based on size, style of investment, risk etc. In addition to debt and equity, one

What is Algorithm Trading?

Algorithm trading is a trading technique used in financial markets which involves transaction decision making via making use of various mathematical tools and algorithms. The role of a human trader is nullified in this as it presents all profit-making opportunities in the market to the system much before they are spotted by the human trader

Masala Bonds

Masala bonds are rupee denominated overseas bonds. Here are key notable points about Masala Bonds. Such bonds are Rupee denominated. When an Indian company issues Rupee denominated Bond, it is obviously shielded against the risk of currency exchange rate aberrations. The foreign exchange risk is on foreign investors rather. The key advantages of Masala Bonds

Key facts about Treasury Bills in India

The bill market is a sub-market of the money market in India. There are two types of bills viz. Treasury Bills and commercial bills. While Treasury Bills or T-Bills are issued by the Central Government; Commercial Bills are issued by financial institutions. Types of Treasury Bills Treasury Bills are basically instruments for short term (maturities

Call Money / Notice Money Market

Call Money, Notice Money and Term Money markets are sub-markets of the Indian Money Market. These refer to the markets for very short term funds. Call Money refers to the borrowing or lending of funds for 1 day. Notice Money refers to the borrowing and lending of funds for 2-14 days. Term money refers to

Participatory Notes

Stock markets in India are regulated by SEBI and all Foreign Institutional Investors, who invest in Indian stocks have to get registered with SEBI.  The two broad categories of foreign Investments viz. FDI and FII are highly regulated and need several approvals from SEBI. On the other hand, Participatory Notes is the alternative by which

What are Stabilization Funds?

Countries which are endowed with natural resources like oil, gas, minerals etc. have huge revenue inflows which give them as many options to use them for development and growth. These countries have a windfall of funds which are used to attain a sustainable economic growth and invest in populist measures like promotion of education of

Factor Investing 

Factor Investing is one of the latest buzzwords in the investment sector, which is still to make a considerable presence on Indian soils. Investments have been traditionally done generally based on various Asset-Classes. This traditional knowledge took a setback when the global financial crisis grouped many unrelated stock together thus raising critical doubts over the

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