How to Invest in the Indian Stock Market

Register with a stockbroker or investment firm with ties to the Indian stock market. The defining factor when hiring financial assistance is experience with the market in which you invest your money. Stockbrokers can be costly, but they tend to respond quickly to queries about individual stocks.
Examine the BSE 200 index to determine the strength of your investments in India. This index covers the 200 best-performing businesses in India on a daily basis. Look at individual businesses in your favored industrial sector to assess the wisdom of potential investments.
Go out on a limb with a technology stock through the BSE TECk index. The Indian economy features a rapidly expanding biotechnology and computer-development sector that has been a boon to investors. Past success should be taken with a grain of salt, however, because similar growth in the United States in the 1990s resulted in lost profits for investors.
Locate growing companies with small amounts of capital through the BSE Small-Cap Index. This index features hundreds of young companies with low funding that are looking for investors to take them to the next level. You can invest in a company at a cheap share price without a great deal of risk.
Track the progress of your stocks online with the Bombay Stock Exchange's commitment to quick updates. The BSE index transmits information to local brokers, international websites and business-television networks every 15 seconds.
Spend your investment dollars wisely as you invest in the Bankex index. This index tracks the progress of India's top 12 banks and allows you to make an investment in their growth.

How to Calculate Stock Basis for Exercised Options

Receive notification from your brokerage that an option has been exercised. This will most likely come in the form of a trade confirmation the day after option expiration. If an option is 'In-The-Money' by even one cent, the option will be exercised.
Determine your initial cost in the stock. This will be the share price you paid to buy the stock for the first time.
Adjust your cost basis by calculating the total option premiums you have collected against the stock. Keep in mind that options which expired previously without being exercised also reduce your basis in the stock.For example, let's say you bought 100 shares of XYZ in January for $10 per share. You then sold the February $12.50 call option and collected a $1 premium, lowering your basis in the stock to $9 per share. On option expiration day in February, the stock is $11 per share, so the option expires worthless. You decide to sell a March $12.50 call, and this time you collect a $2 premium, lowering your overall basis to $7 per share.
Calculate your profit or loss. If an call option is exercised at a strike price higher than your basis in the stock, you have made a profit. To calculate the profit, you must subtract your basis in the stock from the strike price of the option.To use our earlier example, on option expiration day in March the stock is $13 per share. The option you sold is exercised at its strike price ($12.50). Your basis in the stock is $7. Therefore, $12.50-$7=$5.50 profit per share on the trade.If an option is exercised at a strike price below your cost basis, you have a loss. To calculate the loss, subtract the strike price from your basis in the stock.
Calculate your tax basis. For tax purposes, your basis in a stock also includes all the commissions and fees you incurred during the trade. The easy way to calculate that is to add up all the commissions and fees and divide the total by the number of shares you own.