I started my digital venture back in January’16.

When I started, I was flat but I took a vow that I’ll assist each and every person who have doubts regarding Stock Market. Personally or publicly.

It was a real sense of motivation to see people leaving back all the positives for helping them with their problems.

Ask here anything. I’ll read & respond to each & every query.

If something confidential, we can get in touch through email – hey@sowmayjain.com

Imp – don’t forget to register with Disqus commenting system to receive email updates whenever you receive a reply on your comment.

  • Lawrence A

    Hi Sowmay
    I started trading in 2007 because of my friend. He used to tell me buy this or sell this and I used to listen to him. In the process I had lost close to Rs. 100000. I stopped trading. That was too much for me. I still have about 4 stocks that is now worth only Rs. 3000.
    Having said that I would want to start afresh. I would like to earn. This time without any knowledge of the markets I do not want to lose more money. Hence I request you to kindly guide me in my endeavour like you do for others.
    Thanks Bro.

    • Hi Lawrence. Why don’t you enroll our 14 day challenge. We will start (step by step) from scratch on how to successfully get started Investing. The challenge is starting from 21st of Nov. Hurry up!


  • Kedarnath Talisetty

    Hi Sowmay, i am looking for your Quora post were you have wrote about how to start investing in stocks. Its a very long post. I missed it somewhere. Can you share the link to tkedarinath@gmail.com please. Thank you

  • Malyadri Sangana

    Hi Sowmay, which is the best portfolio website?

  • Karthik Rajasekaran

    HI sowmay ,why is your article on pincon spirit passsword protected? i would like to read the post if its not an issue

  • bipin kaurani

    Hi Sowmay,
    Was extremely interested in Jubilant foods since its quoting close to its 52 weeks low, also demonitization could have a major hit on its Q3 results, and looks good to accumulate from a 1 year horizon. How do I back up my gut feeling with research. Would you be able to guide me through it. Thanks a lot.

  • mukul kapoor

    Hi Sowmay, Your blogs are really great. I have just completed three basic books – stocks to riches, rich dad poor dad and the little book that still beats the market. Can you suggest some books that can help understanding stocks with respect to technical indicators and provide understanding of all technical jargons??

    • For understanding technical jargons, Google search is enough. Books are just meant to read the minds of other great Investors and their strategy. Don’t forget to read this book by Pat Dorsey – http://amzn.to/2gnHI9h

  • Kanwar Dhillon

    Hi sowmay, i want to start investing i have read some books and have basic knownledge about stock markets also i am learning about analysing financial statements what i have been able to find out that to invest successfully business acumen is needed.. but i don’t know about business that much. What makes a business great.. if we take financial ratios in account what number is good what is bad i don’t know these things.. same ratio is good in one business and bad in another please help me to clear my confusions. please tell me any book that can help me clear my confusions.

  • Makarand

    Hi Sowmay, I Want to know how to find particular investors current portfolio as u mentioned of Nemish shah sir.. Thanks

  • You need to search it on Google and find out the reliable source. Match all of the sources you find to check the relevance. However, I found – shareboss.in – as the best site to check the portfolio of Big players.

  • kishore chandra

    hi sowmay,
    I am new to trading and there are so many unanswered question which I tried searching on google but no luck. In this process of finding the information I got to know about your blog. I will be very glad if you are able to answer my questions.

    Q1. If a person hold the shares of a company in any one of the stock market which is BSE or NSE and the company announces dividend, will he be eligible for dividend?

    Q2. Why is there a difference in the share price of the same company in NSE and BSE?

    Q3. I have heard about weekend parking which a large company does. Is it possible that a retail trader like me can do the same?

    Q4. I have been studying the stocks of a particular companies for a while and I have observed that the previous close price should be same as the previous day’s closing price but in some cases it differs. why is it so? is it just that the sharekhan website is showing the wrong information?

    I still have many questions. I’ll just ask it when you reply for this.

    • 1 – Yes, of course. He will be eligible.
      2 – Because they both are different exchange. They have their own system to calculate the price. Speed, timing etc affects the pricing. However, whenever the gap widens, arbitrary trades fill it up.
      3 – I don’t think so. And even parking activities are illegal in many countries.
      4 – Can you provide any screenshot to authenticate your Question 4.

      • kishore chandra

        Thank you for the reply and I forgot to take screenshots but sure I’ll take when I encounter the same next time.

        • kishore chandra
          • The possible reason behind this may be the time gap between the website. Sharekhan as being a broker shows you the live price data whereas moneycontrol shows the 15 minute delay time data.

            But the closing time for both the website are same which makes the price difference. Still not sure about the perfect reason but can consider this.

          • kishore chandra

            Not only that but when I trade also same situation arises. I checked it with nse website also. The closing price varies very much. This in turn is affecting my portfolio and it is showing wrong info.

          • Might talk to your share khan regional manager.

  • kishore chandra

    Hey sowmay,
    I am new to trading and I have lot of unanswered questions which i tried to search on google but no luck. In the process of searching answers I got to know about your blog and I have already read a few blogs of yours and its quite good. And i hope you might be able to provide me with answers for my questions. I will be really grateful if you clear my doubts.

    Q1. If an individual own stocks in any one of the stock market that is BSE or NSE and the company announces dividend, is he eligible for the dividend?

    Q2. How can one buy stocks at current trading price without bidding for it?

    Q3. Is there any blog on dividend calculation and yield? If yes, can you share the link to it?

    Q4. If the company gives dividend of certain percent, is it based on the currently trading price or the face value of the stock?

    Hope it isn’t too much to ask…

  • hari kumar

    Hi Sowmay ,i thinking to start investing in shares. could you help me …..i dont know anything about shares. from past two days onwards im trying to understand what im reading about shares in internet….i read your blog….i have some doubts. i want to ask you more……Can you help

  • Deepak

    Hi Sowmay. Kudos to you. Doing a great work.
    Wanted to know which is better Zerodha or Angel Broking?

  • 1 – Yes, eligible.
    2 – Execute Market Order.
    3 – Suggested read: http://sowmayjain.com/2016/08/09/10-crazy-dividend-paying-stocks-in-indian-stock-market-with-pros-cons-and-some-faqs/
    4 – Above article will solve your all doubts regarding dividends.

  • Both are better in their own terms. Zerodha is cost effective and technological. Whereas Angel brokers are good at providing better customer support with extra services other than brokering.

  • Avinash Babu

    Hi sowmay,I am a beginner to stock markets .could u suggest me which is better for opening demat a/c either with banks or with discounting brokerage firms?

    • Discount brokerage firms. They are much cheap than banking brokers. However, banking brokers provide extra services like 3 in 1 account etc.

      • Avinash Babu

        Could u suggest me the best discount brokerage firms

  • kishore chandra

    Hi again,
    Can you tell me something about debentures and commodities marke?
    Can you suggest me some blogs related to this?

  • kp

    Hi sowmay,. I am a beginner in stock market. While analyzing an stock I found that it’s p/e is 41 while industry average is 49.50.
    While other aspects like sales growth., Profit growth are increasing you.
    What’s your take on this…. How would you proceed on this stock. How would analyze such type of stocks coz most of the stocks in that sector have pe ratios more tha. 40
    Stock name is Marico

    • FMCG is a low-risk sector which is the best possible reason for such an inflated prices. If you’re looking for a slow and steady growth then you can stay invested in this sector. Most of the stocks in this sector always have an up going price charts due to low risk & steady growth associated.

      I’ll not invest in this sector if I’m looking for high returning stocks. However, this sector can give you much better return than FDs (or anything similar) with low risk and less research.

  • Here’s the quick explanation:
    Debentures are the fixed interest incurring securities issued by companies. It’s similar to loan (with company point of view) except it’s not issued by banks instead by general public.
    Commodities are the primary sector products. These products are also traded on exchanges like equities. Soft commodities are wheat, coffee etc and hard commodity are gold, silver etc.

  • Yamin

    Hey sowmay, can you share your experience of blogging and how you started

  • kishore chandra

    I have a trading account in sharekhan. there are three types of order
    1.GFD-Good For Day
    2.IOC- Immediate or Cancel
    I bought some share using GFD and they are not in D/p account…! then I bought a single stock using IOC that showed in D/p account. why is this happening? can you explain the 3 order types with few examples?

  • Amayra Jones

    Hello Sowmay,
    I felt very enthusiastic after reading your blog. Well I have some 20 k and I am very passionate about gaining from stock market. Can you suggest me on how to which all stocks can I invest my money and how.


  • kishore chandra

    Hi again,
    A little info on D/p account and portfolio?
    Why is there a difference in the hold value between these two?
    And can we connect on facebook? its kishore yadav rao.

    • DP account is where the shares are kept in electronic form. The difference might be due to Dp are updated EOD. Yes, we can get in touch but I’m more active on my website, in case you have any queries.

      Tap the facebook button right hand top corner.

  • kishore chandra

    Have you written any blog about brokerage firms and different types of brokers? If there is can you share the link?

    • Haven’t wrote any article on that topic yet.

  • dinesh mohan

    hey sowmay i want to write a tradesript for certain criteria for intrada trading can u help me with that?

  • dinesh mohan

    trade script for divergnece , rsi , macd, when they meet a certain criteria system should give an alert….how?

  • Yeah, sure. If you’re making it for your personal use then Spreadsheet will do the work. Else, we need to create a standalone application. Let’s get in email – hey@sowmayjain.com

  • Vinod Dharman

    How do stocks earn compound interest?

    • Compounding in stocks can’t be matched with the interest from bank deposits. However, dividends are paid on equities, not interests. from the earning point of view, we can say that the earnings retained by the company (i.e. not paid as dividends) are used for further expansion of the corporation which acts in a compounding results. This is also termed at plowing back the profits.

      • Vinod Dharman

        Okay so lets assume i am buying a share of a company @ Rs.50.00 and I am holding it for around 10 yrs. After 10 yrs the price is Rs. 150.00. But in this 10 yrs period the stock moved up and down, say it went to 150 and back to 50 multiple times. My profit is still Rs. 100 right? (Lets forget about the divided paid).

        • Yes, you can calculate the compounding rates. Take 50 as present value and 150 as future values and execute the formula. It sounds like: At what rate the 50 will turn into 150 if compounded annually for 10 years? You can use excel sheets for such calculations.

          • Vinod Dharman

            I am sorry sowmay, I am not trying to calculate the percentage here. I am trying to understand between the short term investment and long term investment. I read several topics on your blog and the book you recommended “Stock to riches”. They all recommend for long term invest and one of the main reason they are saying is compound interest. So coming back to my earlier question, If I am going to get only Rs.100 profit after holding 10 years, I could have sold much before for the same price and book Rs.100 profit (Note: I told the stock went up to 150 and came down to 50 several times and back to 150) and I could have bought the same stock again @ Rs. 50 when it came down, which would give me more profit than holding it for a long term. Please correct me if I am wrong.

          • It’s not that easy. How will you predict that the stock is again going to priced up after the drop and how you can say that the stock will down after tumbling. Your questions take many estimates which make it easy for you to think of it but in the real market, an overvalued stock can touch another high and an undervalued stock can touch another low. Nothing is predictable in short run. So merely, to and fro, buying and selling is not the solution to gain wealth.

  • shikha

    I have put My stock research work under a blog.. I would really appreciate your feedback/comments so I could write More

    shikha capital
    Stocks , stock market, equity market or share market

  • Vinod Dharman

    Thank you so much Sowmay for you clarification. Your blog and recommendations like books, screener, all these are helping and boosting my confidence on investment. Will continue to follow your blog.. Keep it up

  • sahil patil

    What should an equity trader look for in the upcoming Union Budget of 2017-18?
    I mean how the budget will move a stock in a particular direction

    • There are many factors working together to move a stock price. Union Budget consists of many sectoral budgets related to the different groups of companies .

      Quick example: the budget is likely to favor digital transactions so it will boost the company indulged in the digital niche. But remember, it’s a speculation that almost everybody is talking about so the price will be already inflated before Union Budget will be announced.

      In nutshell, there are many factors working together to impulse the price up and down.

      • sahil patil

        Thanks for the reply Sowmay!
        One more thing, from last 30 days or so ITC Ltd. share price is increasing rapidly. What can be the reason behind it? I googled it but was unable to find the accurate info, or
        Is there any site which specifically explains the fluctuations in the stocks price?

        • As I’m not tracking ITC so can’t say anything about. It takes time to figure out the real situation. I don’t think that there’s any website for that purpose.

  • Great. Shikha. Keep the work up.

  • Karthik Rajasekaran

    Hey sowmay, why have you stopped writing blog post in the recent months?
    Looking for your blog contents?
    Your views on Union Budget,market direction in the coming months,and good stocks analysis n etc

    • Hey Karthik, thanks for your concern. I’m busy with some venture so was not active. Will soon back to my regular schedule.

      • Karthik Rajasekaran

        okay thanks..because we love your contents and it do helps us a lot

  • yogesh

    Iam new to stock market can you suggest me shall I start as intraday trading or positional trading.At present Ian having around 1 lakh at my disposal.

    • As freshman, you should start positional trades. They are less riskier and more predictable.

      • yogesh

        Iam unaware of positional trade can you please elaborate

        • Positional trades (aka delivery trades) is where you take position in the stock for more than more than one day. Here, position means you stay owner.

          • yogesh

            ok got it Thanks a lot.

  • Hi Murali, I had changed page template. Now, you can navigate through all the pages from the navigation page numbers found at the end of the article snippets.

    • Murali Krishna

      Thank you very much.

  • Hi Neeraj, I don’t know much about Intra-day trading. Long time back, I did a certification on NSE Education on margin trades. Give it a try.

  • I only invest and track individual companies. Don’t know much about funds. I know a guy who has some expertise in this field. Check out his blog: https://shabbir.in

  • Don’t know much about mutual funds. Check out this website – https://shabbir.in. He usually write about different funds.

  • I don’t see any reasonable cause for stock market crash in India. If economy boosts up, market valuation also boosts. No matter, how much prices are overvalued. Indian market is in healthy stage and possibly will not face huge crash.

  • Here’s a similar query: http://disq.us/p/1gdetza

  • Manoranjan Das

    I have 8000 shares of Aegis Logistics bought @Rs 6.75 . I want to know the growth and future prospects of this company 5yrs forward considering both macro and micro scenario. I have been holding these stocks for around 7 years. It was included to my portfolio for wealth creation.

  • MZone

    There’s news that SBI under the merger plan SBBJ shareholders will get 28 shares of SBI (Re 1 each) for every 10 shares (Rs 10 each) held & SBM and SBT shareholders will get 22 shares of SBI for every 10 shares.

    When do you think this transfer would take place would it make sense to purchase sbbj/sbt/sbm stock in lieu of SBI stock?

    • It will sense to buy sbbj/sbt/sbm as they are already inflated in terms of prices. I’m not aware of the dates of this transfer.

  • Abhishek

    Great work. Your posts are awesome. Keep working…I know one should never invest on other’s advice but what do you think about aviation stocks in India. They are pretty undervalued right now given the growth we expect in this sector. Barring oil prices fluctuations, what else can cease the growth?

    • Thanks for your compliment, Abhishek. Regarding Aviation, I never understood that sector so can’t say anything.

  • You can find all the post on this page: http://sowmayjain.com/sitemap

  • Judging the company’s management are merely estimations. You should consider qualitative factors like company’s interaction with retail investors, watch their interviews, connect to the company’s con calls, try contacting the distributor if there’s any in your locality. If possible, try to connect to their stakeholders etc.

    • karthik keyan

      Thank you!
      What is that Con call?

      • Concalls are the conference calls where you can interact with company’s management.

  • Like any other currency, bitcoin is also a digital currency. It has no or fewer fundamentals so can’t say anything about it.

  • No personal stock suggestions.

  • Swetha anguluri

    Hi sowmay, can you please explain about allotment and winning of an IPO

    • A new article will be aired soon related to IPO. Stay tuned.

  • abhijeet kumar

    Hello Sowmay,

    I am thinking to start technical analysis and do investing with it with an aim of creating alternate source of income.
    can you suggest how do I start ?

    Also you mentioned there is an Indian version of ” the intelligent investor “.
    Can you suggest me some good books related to Indian market and technical analysis

    Looking forward for your response.

  • You don’t need to calculate or adjust them in your portfolio. Everything works automatically. Anyway, here’s the formula:
    Stock price after stock split = Split ratio * CMP
    Stock price after Bonus shares = CMP * (100% – dividend yield %)

  • For basic lift off, you should go with NSE NCFM modules. If have time to study, try CFA.

  • Senthilnathan

    Hi Sowmya
    Iam holding OBC stock which i bought @ 121 should i hold the stock in current value or sell it. i actually bought the stock for time frame of 2-3years. its one year i bought this scrip. plz recommend.

    • No personal stock suggestion. Ask anything for informational purpose.

  • Rajnish bansal

    Hi Sowmay
    Can you suggest me some good reading materials that i can refer to improve my fundamental analysis.

  • manasvini

    Your contents are absolutely helpful. only difficulty that i find here is, i have to go through the 8 pages insearch of the topic that i wish to see. it would be better if there is a search inbox which would enable the followers to get the articles they are in search of.

    • Hey Manasvini. All the pages are indexed by Google, that too with a good ranking. You can simply write the website -name (i.e. Sowmay Jain) with 2-3 keywords related to the article heading.

  • No personal stock suggestions. Ask anything informational.

  • For now, read reports created by the expert (mainly by brokerage firm) on different stocks. Figure out what they derive from different numbers. Gradually, you’ll understand everything.

  • Kritesh Abhishek

    Hi Sowmay, I have been following your answers on quora for quite some times and find them really helpful. Recently I have also started my blog on investing https://www.tradebrains.in. I hope you can give some feedback for the blog. Thanks! Kritesh.

    • Web site showing coming soon. Not yet launched.

  • Ishan

    Hi Sowmay! I’m interested in Fintrig. What’s the fees for subscribing to it?

    • Register and log in to your fintrig. You can find a billing section in your account.

  • Can’t comment on individual stocks.

  • Can’t say anything on individual stocks.

  • Instead, you can try ETF. Replicating index returns, always higher than normal rate of return.

  • Will publish it publically soon on this blog.

  • Can’t say anything particular buy point. Analyse and Invest.

  • No individual stock suggestions.

  • S.S. Iyer

    Hi Sowmay, Can you write about dealing with shares that become illiquid or that are trading at low volumes ?

  • Vanshaj Dhar

    Hi Sowmay,
    As we know that buying share means having ownership of that company so if I want to focus on business model how should I evaluate and understand the business model

    • Specific queries, please. That’s a very wide topic.

  • Vanshaj Dhar

    Hi Sowmay,
    From investment perspective which book/books can help me analyse business model of different companies?

    • The Five Rules for Successful Stock Investing by Pat Dorsey might help.

      • Vanshaj Dhar

        Thanks a lot Sowmay for your suggestion

  • Deepak Harish

    Interested​ to know about the projects you have done on cloud computing. Which courses/books you referred for the cloud computing course?

    • All of mine projects are hosted on cloud servers.
      This blog.

      Internet is all you need to learn about cloud computing.

  • Rajesh E R

    helo sowmay, greetings for your new endeavor. I have subscribed for clone folio. here is a doubt, can’t you add the purchase price of each shares of these investors?? it will be very help full. Also try to enter the details as soon as it happen.

  • Yash Thula

    what sector or stocks in particular do you recommend on investing in at the moment?

  • Value Investor

    It has become very fashionable these days for every investor to talk about buying consumer franchises and holding them forever. This is understandable as the strategy has worked remarkably well over the past few years. There are numerous consumer stocks in India which have delivered outsized returns for their investors. Many of these stocks now trade at nosebleed valuations. Forty or 45 times earnings have become par for the course. Still no one wants to sell. It has been drilled into these investors that one should never sell a consumer franchise with a strong moat. A moat is the competitive advantage of the company and is the reason it can generate high returns on capital.

    There are very good reasons why consumer franchises trade at high valuations and at a premium to the market. These companies generate substantial free cash flow, have high returns on capital, penetration growth, and are seen to be very predictable and stable businesses. Such a predictable and growing cash flow stream is enormously valuable, especially in today’s global zero interest rate environment. The cash-flow streams are protected by the moats built around the business, be it brand, distribution, technology, etc. These moats give a sustainable competitive advantage to the business and are very difficult to dislodge.

    The reality is that disruption is underway even in the consumer space. Be it packaged food or consumer products, the moats around these businesses are under threat. Current valuations and investor thinking do not seem to be adjusting for this oncoming disruption.

    The classic consumer business model used to revolve around building a dominant brand through significant marketing investments and then dominating the distribution channels by blocking retail shelf space. Scale was a huge advantage as it allowed you to invest in national TV advertising (the most efficient tool for building a brand) and defray distribution and promotion expenses over a larger volume. Retailers supported this strategy as it suited them to deal with a limited supplier base straddling multiple products. Branded products were sold at a premium, therefore delivering greater absolute margin to the retailer. Retailers also demanded slotting fees to try out new products/ brands on the shelf. Once established, the brand and distribution edge were almost impossible to dislodge. This was then, today the reality seems different.

    As Jeff Bezos has pointed out, because of the internet, power is shifting to the consumer and away from the retailer and manufacturer. Consumers are taking greater control of what, why and how they buy. They are better informed. In this new world, companies need to spend 70 per cent of their energy and money into building a better product/service and only 30 per cent into shouting about and marketing the product to the world. This is the exact opposite of what was needed in the previous regime, where-in 70 per cent of effort was put into marketing.

    All the incumbent advantages are being disrupted.

    National television viewership is actually dropping for the younger demographics, with consumers spending more time online and on social media. Online, it is more of a level- playing field, unlike national TV, money is not everything. Smaller and more innovative companies are usually better than the incumbents at using social media and digital advertising to build brands.
    With e-commerce, online retailers have unlimited shelf space. No longer is this an insurmountable edge for the incumbents. There is far greater willingness to experiment with new products and brands. The marginal cost for the online retailer of keeping an additional brand is near zero.

    Scale is no longer the edge it once was. Consumers are also better informed and less willing to pay a brand premium.

    For anyone in doubt, take the case of dollar shave club. Set up in 2011 by two men tired of being fleeced by shaving product manufacturers. It was an online subscription model selling a decent product at a deep discount to the incumbent. Within five years it had garnered almost 15 per cent volume share and had only raised $160 million in capital. It’s brand was built online through clever use of social media. It was a direct-to-consumer model with no retail gatekeeper to extract rent. The success of dollar shave club and other online models ultimately forced Gillette to drop prices by 20 per cent.

    In the old world, Gillette would have been perceived to have an insurmountable moat. It dominated the retail channel, had 70 per cent market share and 90 per cent of the industry profit pool. It sold a non-substitute consumable. No one would have even dared to challenge its market position. Just to get any shelf space at all, the challenger would have had to make heavy upfront marketing investments. This was as strong a moat as could be seen in any consumer product. Yet in less than five years, it was disrupted, lost share and forced to drop prices.

    There are many other examples of consumer disruption, mostly driven by Amazon and its use of Prime. Already more than 50 per cent of the searches on Amazon are based on the product and not the brand, allowing Amazon to customise the search results. The percentage of searches based on product rather than brand was less than 40 per cent two years ago. Clearly Amazon is gaining power over the brands.

    In such a context, can we justify paying 40-45 times earnings for the consumer brand franchises? Maybe they were worth these multiples when they had a moat around the business which could not be challenged. However, the longevity of the moat must now be questioned. The competitive advantage period for these companies has clearly shortened. However valuation multiples and investor psychology do not seem to have adjusted to the new reality. These may no longer be buy and hold forever stocks. If Gillette can be disrupted so can almost any other brand. Disruption is not only in Tech. 3G capital has also demonstrated that the management teams of many of the consumer giants are not ready for disruption, they are too wedded to their old operating models.

    If we do get even a mild derating, the stocks will be in trouble.

  • Durga Prasad Vipra

    Hi Sowmay. Happy Navratri!
    I have invested around 25000/- in Goldbees ETF. Should I continue in that or take out and put in something else? If I should pull out, what is the best investment for the same?
    Durga prasad Vipra

  • Shubham Dudeja

    I don’t know anything about stock or investment. Totally noobie. So can you help with book in reference to Indian stock so that I can learn basic terms and go in the right direction to accumulating good knowledge. Should I move according to your 3 level chronological sequence ? Thanks!

  • ashok reddy

    I would like to know from you if I can hold Sbi life insurance for long term or quit on the day of listing?

  • mayan kamath

    Don’t see recent new posts!

    Can you do a blog on candle stick pattern and strategy

  • Lok Vijay