The Indian stock market, also known as the Indian equity market, refers to the network of exchanges and regulatory organizations that facilitate the buying and selling of stocks and other securities in India. read more about Everything about the Indian share market.
Share market and How stock market works
It is made up of two main exchanges, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), as well as several regional exchanges and over-the-counter (OTC) markets. The market is regulated by the Securities and Exchange Board of India (SEBI), which is responsible for protecting the interests of investors and ensuring the integrity of the market. The Indian stock market is an important source of capital for companies looking to raise funds, and it also provides investors with an opportunity to earn returns by buying and selling stocks.
Participation
The Indian stock market is open to all individuals, companies, and institutions that meet the requirements for membership. This includes brokers, traders, and other intermediaries who facilitate the buying and selling of stocks.
Market indices
The BSE Sensex and the NSE Nifty are the two main market indices in India. They are used to track the performance of the stock market and consist of a basket of selected stocks that represent the overall market.
Trading hours
The Indian stock market is open for trading from 9:15 AM to 3:30 PM Monday through Friday, except for certain holidays.
Securities
The Indian stock market includes a variety of securities, including stocks, bonds, debentures, and mutual funds. Stocks represent ownership in a company, while bonds are debt instruments issued by companies or governments to raise capital. Debentures are similar to bonds, but they are not backed by collateral. Mutual funds are investment vehicles that pool the money of many investors and use it to buy a diversified portfolio of securities. (Everything about the Indian share market)
Risk and return
Investing in the stock market carries inherent risks, as the value of securities can fluctuate due to various factors such as economic conditions, company performance, and market sentiment. However, the stock market also has the potential to provide higher returns compared to other investments such as bank deposits, as long as investors are willing to accept the risk. It is important for investors to carefully consider their investment goals, risk tolerance, and financial situation before deciding whether to invest in the stock market.
Market participants
There are a variety of participants in the Indian stock market, including individual investors, institutional investors, and market makers. Individual investors are individuals who buy and sell stocks on their own behalf, while institutional investors are organizations such as banks, insurance companies, and pension funds that invest on behalf of their clients. Market makers are firms or individuals who stand ready to buy or sell a particular security at any time, in order to provide liquidity to the market.
Brokers
In order to buy or sell stocks in the Indian stock market, investors must use the services of a broker. Brokers are licensed intermediaries who facilitate the buying and selling of securities on behalf of their clients. They charge a commission for their services, which is a percentage of the value of the trade.
Online trading
In recent years, the Indian stock market has seen a significant increase in the number of investors who trade online using mobile apps or websites. Online trading allows investors to buy and sell stocks and other securities from anywhere, at any time, using their devices.
Market regulation
As mentioned earlier, the Indian stock market is regulated by the Securities and Exchange Board of India (SEBI), which is responsible for ensuring the fairness and integrity of the market. SEBI sets rules and regulations for market participants, oversees the listing and trading of securities, and investigates and enforces violations of its rules.