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 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
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 (NSE
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 stockshas proved to be the most profitable for investors. Stock prices
have increased substantially over the long-term despite short-term speculative swings.
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.