Transformation of the Indian Stock Market
The Indian stock market has witnessed colossal transformation ever since trading
first started with the formation of the Bombay Stock Exchange 135 years ago. It
was the usual outcry method with transactions being a complicated process as online stock trading was not yet introduced. With launch
of online trading in the Indian stock market, first by NSE and then by the BSE,
the investors count increased in large numbers. India is currently the second fastest
developing economy in the world and given the huge growth potential, the count of
foreign investors is increasing too.
The Indian stock market is often interpreted as the NSE BSE market as majority of the transactions takes place
at these bourses though there are other smaller stock exchanges. Both bourses have
been instrumental in steering the Indian stock market towards the present position.
It is the Securities and Exchange Board of India (SEBI) that monitors the functioning
of the stock exchanges besides protecting the interests of investors in securities
in the Indian stock market. With appropriate regulations from time to time, this
Govt. of India body also promotes the development of the securities market.
The Indian stock market is counted as one of the world’s best performing markets.
The NSE today is the second fastest growing stock exchange in the world besides
being the world’s third largest Stock Exchange in terms of the number of trades
in equities. The BSE, is the 11th largest stock exchange in the world besides being
cited as the world's best performing shares market. The stature of the bourses has elevated the
position of the Indian stock market in the world map.
Live Stock Market Trading in India
Stock market trading refers to buying and selling of shares through a stock exchange.
A Stock Exchange is the place where investors buy and sell their shares of public
Once an Indian company goes public it gets listed on a stock exchange of the Indian
stock market. A company may go public by inviting the general public to buy the
shares of the company through an Initial Public Offering (IPO) or through a Follow-on
Public Offer (FPO), thus giving them the opportunity to become part-owners of the
company. Myriad investment opportunities are available in the Indian stock market.
After listing, the shares of the company are available for online trading. The new investors, who want to buy the shares
of the company, can buy them from shareholders who want to sell their shares.
There are two major stock exchanges in the Indian stock market - the National Stock
Exchange (NSE India) and the Bombay Stock Exchange (BSE India). Investors
can buy and sell shares directly from the Indian stock market. Investment in the
Indian stock market can also be done indirectly through a Mutual Fund or an Exchange
Traded Fund (ETF). Stocks are characterised by volatility, in other words their
price in the stock market is likely to experience large swings in value. However,
long-term investing in
Indian stocks has proved to be the most profitable for investors. Stock
prices have increased substantially over the long-term despite short-term speculative
The Indian Stock Market gives investors an opportunity to invest in companies belonging
to different sectors and industries. This helps the investor to gain from a surge
in a sector and also to diversify his risk over a variety of industries in the economy.