Home
Account Login
Not Logged In
☰
  • Trade Now
  • About Us
    • Why Choose us
      • About Kotak Securities
      • Awards and Accolades
      • About Kotak Group
      • Technology
      • Strong Research
      • Ease of Use
      • Service
      • Testimonials
    • Media
      • Press Release
      • Corporate Profile
      • Media Kit
    • Careers
      • NISM Course
      • Current Openings
      • Leadership Speaks
      • Recognition
      • Work Culture
  • Offerings
    • Asset Classes
      • Equity
      • Derivative
      • MF
      • IPO
      • ETF
      • Nifty ETF
      • Currency Derivatives
      • Tax Free Bonds
      • Gold ETF
      • Stock Lending & Borrowing (SLBM)
      • Interest Rate Futures
      • Commodity
    • Trading Tools
      • Website
      • KEAT PRO X
      • Kotak Stock Trader
      • Smallcase
      • Fastlane
      • Xtralite
      • Dealer assisted trading
      • Call and Trade
      • TradeSmart Store
      • TradeSmart Derivatives
      • TradeSmart Insights
      • TradeSmart Trends
      • Chat To Trade
    • Account Types
      • Demat Account
      • EquityTrading Account
      • 2 in 1 Account
      • Trinity Account
      • Linked Account
      • NRI Account
      • Foreign Investors (QFI)
      • PMS
      • Private Client Group (PCG)
      • Pearl Account
    • Brokerage Options
      • Free Intraday Trading
      • Dynamic Brokerage
      • Fixed Brokerage
      • Advance Brokerage
      • NRI Brokerage Plans
      • Shubh Trade
    • Value Added Features
      • Refer and Earn
      • Track External Investments
      • WillSecure
      • Margin Calculator
      • Autoinvest
      • Margin Trading Facility
      • Super Multiple
      • BNST
      • Portfolio Tracker
      • SMS Alerts
      • Indicators and Technical Charts
      • Capital gain report
      • Stock as Margin
      • AMO
  • Markets
    • Market Indices
      • Indian Indices
      • Global Indices
    • Equities
      • Share Market Live
      • Gainer
      • Loser
      • Most Active Stocks
      • Volume Buzzer
      • 52Wk High
      • 52Wk Low
    • Derivatives
      • Derivatives Overview
      • Most Active Contracts
      • Gainers
      • Losers
      • Most Active Put
      • Most Active Call
      • Open Interest
      • Highest in Premium
      • Put Call Ratio
      • Historic Data
    • News
      • All News
      • Bullion News
      • Economic Growth
      • Economy General
      • Other News
    • Currencies
      • FII & DII Activities
      • Event Calendar
      • Announcements
      • Recent Deals
        • Block
        • Bulk
    • Currencies
    • FII & DII Activities
    • Event Calendar
    • Announcements
    • Recent Deals
      • Block
      • Bulk
  • Research
    • Live Research Calls
      • Fundamental Call
      • Technical Call
      • Derivatives Call
      • SIP Call
      • Top Monthly Picks
      • Pick of the Week
      • Consensus
      • Research Success Rate
    • Kotak Research Centre
      • Investors Research
      • Trader Research
      • Mutual Fund Research
      • Nifty Call of the Day
    • Latest Research Reports
      • Buyback
      • Stock Recommendations
      • Trading Recommendations
      • Sector research and updates
      • Market strategy research
      • Derivatives strategy
      • Currency and forex insights
    • Research Events
      • Annual Investor
        Conference 2018
      • Research webinars
    • Sample Research Reports
      • Fundamental
      • Technical
      • Derivatives
      • Currency Derivatives
  • Knowledge Bank
    • Kotak University
    • Union Budget
    • Aadhaar Card
    • Equity Trading
    • Derivative Trading
    • Intraday Trading
    • Mutual Funds
    • Financial Planning
    • Pan Card
    • Voter ID
    • Driving License
    • Income Tax
    • Calculators
    • Videos
    • Meaningful Minutes
    • Articles
  • Help
    • Contact Us
      • Branch Locator
      • Open an Account
      • Activate an account
      • Check Application
        Status
      • FAQs
    • Demos
    • Forms
    • Chat
  • Franchisee
    • Overview
      • Login
      • Partner with us
      • What is a Franchisee?
      • How to become a Franchisee?
      • Broker v/s Sub-Broker
      • Business Models
    • About Us
      • Why Join Us?
      • Partner Success Stories
    • Business Models
      • Business Support
      • Training & Events
      • Tools & Software
    • Contact Us
      • FAQs
Home » Meaningful Minutes » Two Approaches To Select Stocks
OFFERINGS: Value added Features
  • Asset Classes
  • Trading Tools
  • Account Types
  • Brokerage Options
  • Margin Position
  • Brokerage Charges
  • Margin Finance FAQs

Meaningful Minutes

It will take you 3 minutes to get a comprehensive perspective on financial topics
 
2 related articles that add to your knowledge
 
One number fact that you should know
 
2014661830565536055253
How it helps?
  • Zero maintenance charges
  • Zero fees for demat account opening
  • Volume based brokerage
Reach Us
Learn the art of Investing

Read More >


  • Two approaches to select stocks

    India’s financial services sector is huge. It is not just comprised of commercial banks, but also non-banking financial companies (NBFCs). These firms offer a wide array of financial services like loans, chit-funds, and are different from banks. NBFCs are often small players that largely go unnoticed. However, they are still important to the economy, especially in a developing country like India where 70% of the population lives in rural areas.


Given this, how do you choose a stock from among the 5,000? Here are two approaches towards stock selection:

  • Top-down approach:

    Every company works within the overall economic environment. As a result, what affects the economy will impact the companies too either positively or negatively. As a result, the top down approach first involves identifying the trends in the economy like consumer demand, inflation, interest rates, rupee exchange rate, etc. These could be both domestic as well as international factors. Depending on the trend, you narrow down the sectors are performing well and are likely to do so in the near future too. Even within a sector, the extent of the impact of different factors changes from business to business. This could be because of a multiple reasons like consumer segment it caters to, business model, supply system, and so on. For this reason, even within a sector, there will always be outperformers and laggards. The next step is, thus, to identify these and then choose your pick. The best example for this is when rupee fell against the dollar, IT and pharma sector stocks outperformed, while most other sectors dragged the markets. Even within these sectors, a few companies like TCS and Sun Pharma outshined the rest of the companies.

  • Bottom-up approach:

    “This is the exact opposite approach. Here, you do not look at the overall economy. The idea here is that, even if the economic environment is poor, there will always be a few companies that will do well. The investing strategy, thus, involves identifying stocks with very strong fundamentals like a healthy balance sheet, sound management, and effective business model. As a result, this approach requires a lot of research into the company’s past performance as well as the stock’s track record. However, it is important to take into account future factors that may affect the company. So, the broader economy should not be completely ignored. This approach works best when the overall market sentiment is negative. You will then try to find hidden gems in an underperforming sector like auto or realty, and bet on its prospects for future growth.

    • Investing in shares: five strategies explained.Read more

    • Bottom-up approach likely to benefit investors as markets get jitteryRead more

  • 44%

    If you are a top down investor, you are likely to bet on IT stocks. These companies earn in dollars and other foreign currencies, and thus, benefit from rupee’s devaluation. As a result, the BSE IT index, which tracks these stocks, has outperformed the BSE Sensex in the last one year. The BSE IT jumped 44% as against a 3% rise in the Sensex.









Stock Market Sectors :        A | B | C | D | E | F | G | H | I | J | L | M | N | O | P | R | S | T | V | W |

About Us

  • • Branch Locator
  • • About Kotak Securities
  • • Awards and Accolades
  • • About Kotak Group
  • • Technology
  • • Strong Research
  • • Customer Support Chat
  • • Brokerage Charges

Asset Classes

  • • Equity Trading
  • • Derivative Trading
  • • Mutual Fund Investment
  • • IPO
  • • Gold Funds
  • • Currency Derivatives
  • • Fixed Deposits & Tax Free Bonds
  • • Debentures

Derivatives Market

  • • Most Active Contracts
  • • Gainers
  • • Losers
  • • Top Volume Traded
  • • Top Value Traded
  • • Most Active Put
  • • Most Active Call
  • • Open Interest
  • • Highest in Premium
  • • Put Call Ratio

Investment Knowledge Bank

  • • Share Market Basics
  • • What is Demat Account
  • • What are Derivatives?
  • • What are Futures?
  • • What are Options?
  • • What are Mutual Funds?
  • • Basics of Financial Planning
  • • Calculators
  • • Videos
  • • Meaningful Minutes

Trading Tools & Research Reports

  • • KEAT PRO X
  • • Kotak Stock Trader APP
  • • Fastlane
  • • Xtralite
  • • Dealer assisted trading
  • • Call and Trade
  • • Investors Research
  • • Trader Research
  • • Mutual Fund Research
  • • Fundamental Analysis Reports
  • • Technical Analysis Reports
  • • Derivative Reports
  • • Currency Derivative Reports

Account Types & Value Added Services

  • • Demat Account
  • • 2 in 1 Account
  • • Trinity Account (3-in-1 Account)
  • • Linked Account
  • • NRI Account
  • • PMS
  • • Margin Trading
  • • BNST
  • • TradeSmart Store
  • • SMS Alerts
  • • AMO

Equity Market

  • • Share Market Live
  • • Gainer
  • • Loser
  • • Most Active Stocks
  • • Volume Buzzer
  • • 52Wk High
  • • 52Wk Low
  • • All Market News
  • • Bullion News
  • • Economy General
  • • Corporate Actions
  • • Other News
CUSTOMER CARE TOLL FREE

1800 209 9191 / 1860 266 9191

Mon to Fri – 8.00 AM TO 6.00 PM
Sat – 9.00 AM to 2.00 PM
To dial from Mobile phone add city STD code

Existing customers can send in their grievances for Trading account to service.securities@kotak.com
& Demat account to ks.demat@kotak.com

Connect with us

No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account.

KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary. Attention Investors Prevent Unauthorized Transactions in your demat / trading account --> Update your Mobile Number/ email Id with your stock broker / Depository Participant. Receive information of your transactions directly from Exchanges on your mobile / email at the end of day and alerts on your registered mobile for all debits and other important transactions in your demat account directly from NSDL/ CDSL on the same day." - Issued in the interest of investors. Circular No.: NSDL/POLICY/2014/0094, NSE/INSP/27436, BSE - 20140901-21

Kindly note that as per NSE circulars nos: NSE/INVG/36333 dated November 17, 2017, NSE/INVG/37765 dated May 15.2018 and BSE circular nos: 20171117-18 dated November 17, 2017, 20180515-39 dated May 15.2018, trading in securities in which unsolicited messages are being circulated is restricted. The list of such stocks are available on the website of NSE & BSE. In case of any queries, request you to kindly get in touch with Customer Service on 18002099191/9292

Kotak Securities Ltd. bearing licence no. CA0268 is a Corporate Agent of Kotak Mahindra Old Mutual Life Insurance Ltd. We have taken reasonable measures to protect security and confidentiality of the Customer Information.

The Stock Exchange, Mumbai is not in any manner answerable, responsible or liable to any person or persons for any acts of omission or commission, errors, mistakes and/or violation, actual or perceived, by us or our partners, agents, associates etc., of any of the Rules, Regulations, Bye-laws of the Stock Exchange, Mumbai, SEBI Act or any other laws in force from time to time.
The Stock Exchange, Mumbai is not answerable, responsible or liable for any information on this Website or for any services rendered by our employees, our servants, and us.

Filling complaints on SCORES- Easy & Quick

a. Register on SCORES portal  |  b. Mandatory details for filling complaints on SCORES  i. Name, PAN, Address, Mobile Number, E-mail ID  |  c. Benefits:  i. Effective Communication  ii. Speedy redressal of the grievances

Charges for Other Services  |  Disclaimer  |  Sitemap  |  Privacy & Security  |  256 Bit Encryption  |  BSE  |  NSE  |  MSE  |  MCX  |  SEBI  |  SCORES  |  Anti Money Laundering Measures  |  Important Policies  |  Dos & Donts  |  National Pension System  |  List of GST Registration Number

© 2005 Kotak Securities Limited.

Registered Office: 27 BKC, C 27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai 400051. Telephone No.: +22 43360000, Fax No.: +22 67132430.
Correspondence Address: Infinity IT Park, Bldg. No 21, Opp. Film City Road, A K Vaidya Marg, Malad (East), Mumbai 400097. Telephone No: 42856825.

CIN: U99999MH1994PLC134051. SEBI Registration No: INZ000200137(Member of NSE, BSE, MSE, MCX & NCDEX), AMFI ARN 0164, PMS INP000000258 and Research Analyst INH000000586.

NSDL/CDSL: IN-DP-NSDL-23-97

New To share Market?

Open Your Account Today!

New Customer?

Hurry! Sign up for Free Intraday Trading now

BROKERAGE FREE

on intraday trades

AVAIL THE OFFER NOW

NO ACCOUNT OPENING CHARGES



Submit

Please Note

That by submitting the above mentioned details, you are authorising Kotak Securities & its sub-brokers & agents to call you and send promotional communication even though you may be registered under DNC.

Open An Account