Indian Stock Market

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.