First of all, you have to open a demat account with the help of a broker. After this you have to link the demat account with your bank account.
Transfer funds from your bank account to your demat account and buy shares of any company by logging in yourself or placing an order on the broker’s website.
After that those shares will be transferred to your demat account. You can sell it whenever you want through a broker on any working day.
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Foreign investors pulled ₹6,000 crore from the market in the new year
New Delhi: Foreign portfolio investors (FPIs) have pulled out Rs 6,000 crore from the domestic stock market so far in January. Market analysts believe that this trend may continue in the coming months as well.
Foreign investors had invested Rs 8,584 crore during the last two months of 2018 – November and December. In October, he had withdrawn a huge amount of Rs 28,900 crore.
According to information received from depositories, foreign portfolio investors had withdrawn Rs 5,880 crore from the domestic stock market during January 1 to 25. However, during this period he also invested Rs 163 crore in the debt market.
Vinod Nair, Head of Research, Geojit Financial Services, said, “Investors are taking a cautious approach towards the Indian market due to global volatility and the upcoming Lok Sabha elections.”
Himanshu Srivastava, Senior Analyst, Morningstar Investment Advisors India, said that the new year has not started well in terms of foreign investment. Foreign investors are being very cautious. They have been adopting this stance for quite some time.
He said that the eyes of investors are on the upcoming budget, economic situation and Lok Sabha elections. Trading will also be affected by the volatility in crude oil prices and currency. The effect of the trade war is also going to be seen on the mood of foreign investors.
“Apart from all this, foreign investment will also be affected by the US Federal Reserve’s stance on global growth rates and interest rates,” he said. Alok Agarwal, Senior Vice President, Bajaj Capital also agrees with this.
“In the US, due to rising interest rates, reduced liquidity and trade tensions, foreign investors may intensify selling. Apart from this, volatility in currency and crude oil prices may increase selling by foreign investors,” he said.
Aggarwal said, “If conditions remain normal, foreign investment can be positive in the coming few months. Even if the situation abroad improves, investment will increase. In the last few months there has been a big fall in crude oil prices.”