Before we discuss about
Indian Stock Market it is mandatory to understand “what exactly Market is?”
The Market is a structure
that allows buyers and sellers to exchange any type of goods, Services and
information.
Indian stock market has about
30 million domestic investors. Stock exchanges started in 1875 in India. There
are two most important and widely used stock exchanges of India, BSE and
NSE. BSE stands for ‘Bombay Stock Exchange’ and NSE stands for ‘National Stock
Exchange’. About 2500 companies are listed in both of these Stock Exchanges.
The History of Indian Stock Trading started with 318 persons taking membership
in Stock Brokers Association with rupee one for membership fee.
Indian Stock Market has seen many up and downs but now
its flying higher and higher. Various actions have been taken by government to
take steps to prevent frauds such as diversion of huge funds from banks through
fraudulent means. To prevent from such frauds, the Government formed the
Securities and Exchange Board of India (SEBI) in 1992. SEBI controls and
regulates the functioning of Stock, Brokers, Sub-Brokers, Exchangers, and
Investment Advisors etc. Top Officials of SEBI says that the chances for fraud now
is nil.
Many FII i.e. Foreign
Institutional Investors are investing in Indian Stock Market on a very large
scale. In 1999 sensex crossed 5000 mark, in 2000 it crossed 6000 mark. Nobody
can predict the environment of Indian Share Market so it is also called as
“Volatile market”. Result of a cricket match between Pakistan
and India
affected the movements in Indian Stock Exchange. Nowadays global investors seek
India
as their preferred location for investment. Indian Stock Market appeals to
middle class Indians also. Many Indians who are working in foreign countries
divert their income into shares or stocks. For this particular reason online
trading took place. NRIs have been provided with good facilities taken their
time constraint in mind. Many shareholders have started their offices in other
countries to provide help to NRIs so that they can buy and sell shares or
stocks online after returning from their work.
Indian Stock Market can be
associated with the growth in the field of Information Technology,
Telecommunication, Agriculture, Education etc. Indian Stock Market provides
biggest growth opportunities. In India 4% of the total population
invests their money in Indian Share Market.
Fundamentals of Indian
Stock Market:
BSE and NSE represent
themselves as synonyms of Indian Stock Market. BSE got permanent recognition
from the Government of India in 1965. Bombay Stock Exchange is more popular
than National Stock Exchange. BSE has largest number of companies listed in the
world. BSE is the largest stock exchange in Asia.
BSE developed the BSE Sensex in 1986. BSE sensex is the index of BSE. It is a
widely used market index in India
and Asia. Though there are many stock
exchanges but most popular ones are BSE and NSE.
There are 30 companies that
determine the BSE sensex are as named: ACC, Bajaj, Bharti, BHEL, Cipla, Dr
Reddy's, GACL, Grasim, HDFC, HDFC Bank, Hero Honda, Hindalco, HLL, ICICI Bank,
Infosys, ITC, L&T, Maruti, NTPC, ONGC, Ranbaxy, Reliance, Reliance Energy,
Satyam, SBI, Tata Motors, Tata Power, TCS, Tisco and Wipro. NSE i.e. National
Stock Exchange is a Mumbai Based Stock Exchange. In terms of daily turnover and
number of trades for derivative trading and for equities as well. NSE was
incorporated in 1992. NSE has major segments of the capital market. Like-
Equity, futures and options, Currency futures, Retail Debt Market, Wholesale
Debt Market. NSE conducts online examination within 19 modules. Branches of NSE
are located all over the world.
Hence Indian Stock Market is
the widest market for the stock to be traded within large number of investors.