The Indian rupee slipped  its lowest points since the last two weeks on Wednesday. Some Asian Currencies also slipped same as rupee, against dollar.

Partially exchangeable rupee was 39.85/86 on Monday’s close while it was 39.86 for each Dollar at 9:40 on Wednesday. Indian Markets were closed on October 2, 2007 for National holiday. Previous week Indian rupee increased till 39.62 to touch a new peak of success first time after April 1998.

Investors said they will analysis of Share Market to find direction of  Indian Rupee. Direction of rupee depends on investment. Investment Flows has increased over than 11% current financial year. The Stock Market Index made new records in last some trading days. Foreigners bought more than 3.6 billion dollar during the last some trading days of September by the sources, after a cut in interest rates of American Bank.

Data shows that in the first seventh months of financial year 2007 the Central Bank spent 38.1 billion dollar to test the rupee therefore traders are alert about provoking the central bank.  

Returns from investments in shares or stock market come in two forms- capital appreciation and dividends. Capital appreciation takes place when there is and increase in the price of your shares. For example, if you buy 100 shares of XYZ Ltd. Rs. 1,000 and later sell them for Rs. 1,800, there is a capital appreciation of Rs. 800 or 80 per cent. This is also referred to as capital gains or capital appreciation.
When you invest in shares, your capital grows quickly-much faster than in most other forms of investment. Sometimes the growth can be spectacular, going even as high as 1,000 per cent per annum. People are attracted to shares precisely because they offer exciting possibilities of getting rich.

Investments in shares not only give capital appreciation, it also gives income in the form of dividends. Dividend is the amount that a company distributed every year to its shareholders out of the profits it earns. It is usually expressed as a percentage of the face value of the share, or in rupees per share. To get a clear idea of what dividend means, let us assume that you own 100 equity shares of face value of Rs. 10 each in XYZ Ltd. Now if the company declares a dividend of 20 per cent or Rs. 2 per share, you will get a dividend of Rs. 200. It is not necessary for a company to declare a dividend every year. Company’s Watchmaker losses usually skip the payment of dividends. However, most profit-earning companies usually give an annual dividend to their shareholders. Some companies even split this annual dividend into two installments, called interim dividend and final dividend. Most Indian companies usually give dividends ranging from 10 per cent to 30 per cent. It all depends upon the amount of profits the company earns, and the policy adopted by its management on how much of these profits it can afford to distribute to its shareholders

As a rule-of-thumb, the amount you are likely to get as dividends every years will normally be around 1 to 2 per cent of the market value of your shares. For example, if you have shares in various companies whose current market value is Rs. 50,000 then you can expect around Rs. 500 to Rs. 1,000 as the total dividend from these companies. This is a useful rule to remember. It comes in handy when you want to make a quick mental calculation on how much income you are likely to get by way of dividends on your stock market investments.

Rule 1: Don’t buy unlisted shares

Three are over 20,000 public limited companies in India, of which only around 7,000 listed on the country’s various stock exchange. The first rule of profitable share investment is to confine your buying to these 7,000 listed companies only.

Stock exchanges do not permit trading in unlisted shares, nor do they permit their registered members, i.e. brokers to deal in unlisted shares. You won’t get the protection of the stock exchange authorities; nor will able to use the services of your stockbroker in handling such transactions. More over, in the absence of stock exchange quotations you wont be able to assess what the market price of an unlisted share should be. All these factors create complication and risk, which you are should avoid investing in shares of unlisted companies.

How does one know whether a share is listed or not ? It’s simple; all shares whose prices are quoted in daily newspaper are listed shares. Unlisted shares are never quoted. Therefore, the fact that a share is quoted means that it must be listed. This is the easiest and surest way of finding out whether a particular share is listed or not.

Investment is all about, deployment of your savings with the intention of preserving or increasing their value, this deployment can be done by using your savings to buy land, residential property, commercial property, gold jewelery, works of art, fixed deposits in banks and companies, shares, bonds, in fact, anything whose value is likely to either remain constant or appreciate with time.