Due to the high nature of market volatility these days, it can be very hard to know which stocks to invest in and which not to. As a beginner, the entire process of trading in the stock market can be overwhelming. Thankfully, there are various resources online to help us with that like links such as l, which can be quite beneficial in determining which stocks are worth investing in.
What stocks are doing well as of 9th June 2022?
According to the data, the best stocks to invest in currently are:
· Reliance Industries Limited
· Tata Consultancy Services
· HDFC Bank
· Infosys Limited
· Hindustan Unilever
For instance, one can see from the following graph, that the tata power share price today (9th June, 2022) is rupees two hundred and thirty-three, and has been consistently stable over the past few days.
Key facts to remember before investing in stocks:
Many times, traders, especially the ones new to the market are confused about what to consider and what not to consider before investing in a particular stock. Here are the various factors that will determine whether investing in a stock would be a value addition to your investment portfolio or not.
· Market Capitalization: Being aware of an organisation’s market capitalization can avoid one from overpaying on shares.
· Consistency in returns: A declining number of shares with the same return may be more profitable and hence more appealing to an investor.
· Thinking long term: One should always be on the lookout for appealing price to earnings ratio obtained by long term investments, as they can be very useful in the long run.
· SEBI approved stocks: Securities & Exchange Board of India or SEBI is a registered and trusted stock broker. A secure and lower risk way to invest in stocks is to always invest in SEBI approved stocks.
· Hiring a trusted broker: Hiring a broker who is experienced with trading in the stock market and genuinely wants the best returns from your investments for you can be very beneficial.
· Investment goals: A good investor must always remember his or her own financial objectives when deciding on which stock to invest in, and not get swayed away by the market trends.
· It is always a good idea to invest in stocks from well reputed companies, especially when the market is having a positive and consistent upward trend.
· In some cases, it is better to wait for a stock to have more backing and positive foundation before investing in it.
Analysis of the top-performing stocks
· Reliance industries Ltd: It is a company with its head office in India which deals with oil, retail, gas, digital and financial services.
· Tata Consultancy Services: TCS is also a company based in India that provides business and digital guidance along with Information Technology sector services.
· HDFC Bank: This bank is based in India as well and provides financial and commercial services to the general public.
· Infosys Ltd: This is a company dealing with technology, consulting and digital services. It has various segments that deal with financial services and insurance, manufacturing, logistics, energy, utilities, communications and a lot more.
· Hindustan Unilever: It is an India based company dealing with consumer goods.
How to judge a stock to be top-performing?
· Stocks that have quarterly or yearly income growth of a minimum of 25% are usually among the top-performing stocks. However, even Initial Public Offerings can surprise an investor as they have a massive potential for exponential growth.
· A well-known industry benchmark is S&P 500, any stock that outperforms it is automatically a top-performing stock.
· Demand and supply matters. Stocks with high demand are usually performing well and are from well reputed companies. Not to mention, that stocks with a higher demand have it for a reason.
These are our list for the top-performing stocks of 2022 – Reliance Industries Limited, Tata Consultancy Services, HDFC Bank, Infosys Limited and Hindustan Unilever.
Most of these companies are based in India and deal with a variety of sectors. As an individual who has just started to dabble in the stock market, all this information at once can be a bit overwhelming but taking it one step at a time can help. Remember a stock can consist of various types of securities or financial tools such as mutual funds, equity, shares or bonds. Stocks are unlike saving accounts or deposit certificates as the original amount invested in stocks is subject to fluctuation. Stock market can be a phenomenal tool to raise your personal capital or even generate a second stream of income from it as long as one is cautious enough to take calculated risks and be informed.