What is Cash Reserve Ration ? What is CRR ?

Cash Reserve Ration (CRR Definition)

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It’s the low percentage of amount that each bank has got to deposit to the RBI. If RBI chooses to improve the portion of the, the accessible amount with all the banks boils down. RBI is using this way (increase of CRR rate), to drain out the excessive cash within the banks.

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With regard to Example:

Banking companies are required to keep a percentage of their deposits as cash, meaning that in the event you deposit Rs. 100/- in your bank, consequently bank cannot make use of the whole Rs. 100/- for lending or investment cause. They need to keep a part associated with the deposit as cash and may use just the remaining amount for lending/investment. This minimal percentage that is based on the central bank is referred to as Cash Reserve Ratio.

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What is Repo Rate and Reverse Repo Rate?

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A Repo is a item of money market. Generally, Reserve Bank and Commercial Banks engage in repo transactions but not limited to these two. Individuals, banks, financial institutes can also engage in Repo. It is also know as Repurchase Agreement.

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The rate at which the RBI gives money to commercial banks is called Repo Rate. This item is of monetary policy. When banks have any shortage of funds they can borrow from the RBI. So, Repo rate is interest rate which is less than Bonds as the borrowing is collateral.

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A reducing in the repo rate benefits banks get money at a cheaper rate and vice versa. The repo rate in India and same as the discount rate in the US.

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Reverse Repo rate is simply the rate at that the RBI borrows money from commercial banks. Banks are always happy to lend money to the RBI since their money are in safe and secure hands with a good interest. An additional, reverse repo Reserve Bank borrows money from banks by lending securities. The interest paid by Reserve Bank in this case is called reverse repo rate.

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repo-rate

What is CRR ? (Cash Reserve Ration)

What is SLR ?

What is Nifty Bees ?

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NIFTY BEES is the first Exchange Traded Fund in India, which aims to offer investment profits that directly match to the total returns of Stocks as displayed by the S&P CNX Nifty Index. It provides you the most diversified exposure at lowest possible unit size. Roughly speaking, value of Nifty bees will be 1/10th value of the current Nifty price.

Nifty Bees can be purchased or sold like a share by using any NSE Stock broker at prices available on the screen. The fundamental portfolio of Nifty BeES very closely duplicated of the S&P CNX Nifty. That’s why, Nifty BeES tracks the movement of S&P CNX Nifty.  

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Why NFITYBEES suggested ?

  • NiftyBeeS is Less price which is listed and traded on the NSE, Nifty BeES can be bought or sold, although the trading day just by a call to your broker. This gives you the power to answer fast to changes in the market. You can place limit orders. Nifty BeES can be held in your DP account with other portfolio holdings.
  • It is Simple which overall performance of Nifty BeES is just the result of performance of shares in the S&P CNX Nifty Index and demand & supply in the market. There is no Fund manager bias.
  • Nifty BeES duplicates the S&P CNX Nifty, investors can know at any given point of time where and how much is invested in each stock.
  • While buying a single stock, one has to analyze the stock, management quality, future prospects and current valuation, which is not the case in ETF because Investing in just one Stock gives exposure to fifty shares of the S&P CNX Nifty. This allows investors to spread risk with one single decision.

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  1. What is the Meaning of Sensex ?
  2. What is the definition of Nifty ?
  3. List of Nifty 50 Stock

What is SenSex : Definition & History & Finance

SENSEX is the short term for the words “Sensitive Index” and is associated with the Bombay (Mumbai) Stock Exchage (BSE).
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What is meaning of Sensex?
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The SENSEX was first formed on 1-1-1986 and used the market capitalization of the 30 most traded stocks of Sensex. It is biggest and oldest index. The base was 1979 and taken as 100. The 30 scrips of 1986 and no more the same – some have been removed while some have been added. At irregular intervals, the Bombay Stock Exchange (BSE 50) authorities review and modify its composition to make sure it reflects current market conditions. Actually, Sensex is nothing… I will post very soon about sensex calculation & Sensex history
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Today the Sensex constitutes of the following companies:
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Company Name (Industry)
1.    ACC (Cement – Major)
2.    Bharti Airtel (Telecommunications – Service)
3.    BHEL (Engineering – Heavy)
4.    DLF (Construction & Contracting – Real Estate)
5.    Grasim (Diversified)
6.    HDFC Bank (Banks – Private Sector)
7.    HDFC (Finance – Housing)
8.    Hindalco (Aluminium)
9.    HUL (Personal Care)
10.    ICICI Bank (Banks – Private Sector)
11.    Infosys (Computers – Software)
12.    ITC (Cigarettes)
13.    Jaiprakash Associates (Construction & Contracting – Civil)
14.    Larsen & Toubro (Diversified)
15.    Mahindra and Mahindra (Auto – Cars & Jeeps)
16.    Maruti Suzuki (Auto – Cars & Jeeps)
17.    NTPC (Power – Generation/Distribution)
18.    ONGC (Oil Drilling And Exploration)
19.    Ranbaxy Labs (Pharmaceuticals)
20.    Reliance Communications (Telecommunications – Service)
21.    Reliance Industries Limited (Diversified)
22.    Reliance Infrastructure (Power – Generation/Distribution)
23.    State Bank of India (Banks – Public Sector)
24.    Sterlite Industries (Metals – Non Ferrous)
25.    Sun Pharma (Pharmaceuticals)
26.    Tata Motors (Auto – LCVs/HCVs)
27.    Tata Power (Power – Generation/Distribution)
28.    Tata Steel (Steel – Large)
29.    TCS (Computers – Software)
30.    Wipro (Computers – Software)

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Sexsen is now in 2012

Index Nifty: List of Nifty 50 stocks & NIFTY Companies list

Index Nifty: This is the List of Stocks included in the S&P CNX NSE Nifty , Nifty movement is depend on this stocks. The stocks which are included in the composition of the NSE Nifty 50 are changed on certain event. So its called as index nifty.

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List-of-Nifty-50-stocks

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You may also be interested in reading more about:-

 

1 ABB Ltd.

2 ACC Ltd.

3 Ambuja Cements Ltd.

4 Axis Bank Ltd.

5 Bharat Heavy Electricals Ltd.

6 Bharat Petroleum Corporation Ltd.

7 Bharti Airtel Ltd

9 Cipla Ltd.

10 DLF Ltd.

11 GAIL (India) Ltd.

12 HCL Technologies Ltd.

13 HDFC Bank Ltd.

14 Hero Honda Motors Ltd.

15 Hindalco Industries Ltd.

16 Hindustan Unilever Ltd.

17 Housing Development Finance Corporation Ltd.

18 I T C Ltd.

19 ICICI Bank Ltd.

20 Idea Cellular Ltd.

21 Infosys Technologies Ltd.

22 Infrastructure Development Finance Co. Ltd.

23 Jaiprakash Associates Ltd.

24 Jindal Steel & Power Ltd. 25 Kotak Mahindra Bank Ltd.

26 Larsen & Toubro Ltd.

27 Mahindra & Mahindra Ltd. 28 Maruti Suzuki India Ltd.

29 NTPC Ltd.

30 Oil & Natural Gas Corporation Ltd.

31 Power Grid Corporation of India Ltd.

32 Punjab National Bank 33 Ranbaxy Laboratories Ltd.

34 Reliance Capital Ltd.

35 Reliance Communications Ltd.

36 Reliance Industries Ltd.

37 Reliance Infrastructure Ltd.

38 Reliance Power Ltd.

39 Siemens Ltd.

40 State Bank of India

41 Steel Authority of India Ltd.

42 Sterlite Industries (India) Ltd.

43 Sun Pharmaceutical Industries Ltd.

44 Suzlon Energy Ltd.

45 Tata Consultancy Services Ltd.

46 Tata Motors Ltd.

47 Tata Power Co. Ltd.

48 Tata Steel Ltd.

49 Unitech Ltd.

50 Wipro Ltd.

What is the definition of nifty: Nifty definition

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Meaning-of-nifty

Nifty Index Definition: S&P CNX Nifty is varied 50 Stock Index construction for 21 sectors of the economy. It is utilized for a variety of purposes like benchmarking fund portfolios, index based derivatives and index funds. Nifty Index is relating to NSE Stock Exchange, Sensex Sensex is for BSE Stock Exchange.

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Indian Index Services & Products limited(also known as as IISL) owns NIFTY. ISSL is a joint project of NSE & CRISIL. But CRISIL is a subsidiary of standard and Poor, which labeled as as S&P NIFTY or, S&P CNX NIFTY.

 

  • The traded value due to the last six months of all Nifty stocks is around 44.89% of the traded value of all stocks on the NSE
  • Nifty stocks express about 58.64% of the total market exploitation as on March 31, 2008.
  • Impact cost of the S&P CNX Nifty for a portfolio size of Rs.2 crore is 0.15%
  • S&P CNX Nifty is professionally managed and is perfect for derivatives trading.

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Above information is what is the definition of nifty…