Nifty 17176.7 (1.56%)
Sensex 57633.65 (1.56%)
Nifty Bank 36618.4 (2.47%)
Nifty IT 35272.3 (1.13%)
Nifty Financial Services 17979.35 (2.17%)
Adani Ports 744.70 (2.94%)
Asian Paints 3030.35 (-0.26%)
Axis Bank 687.00 (3.60%)
B P C L 387.80 (1.13%)
Bajaj Auto 3286.45 (1.13%)
Bajaj Finance 7103.15 (2.18%)
Bajaj Finserv 17109.00 (1.28%)
Bharti Airtel 698.85 (0.18%)
Britannia Inds. 3474.20 (-0.63%)
Cipla 889.25 (-0.64%)
Coal India 150.65 (1.41%)
Divis Lab. 4624.80 (-0.47%)
Dr Reddys Labs 4520.70 (0.49%)
Eicher Motors 2471.80 (1.13%)
Grasim Inds 1685.55 (1.49%)
H D F C 2817.50 (1.76%)
HCL Technologies 1149.65 (1.15%)
HDFC Bank 1525.70 (1.46%)
HDFC Life Insur. 694.40 (1.49%)
Hero Motocorp 2461.80 (1.73%)
Hind. Unilever 2321.60 (0.65%)
Hindalco Inds. 442.50 (5.02%)
I O C L 120.60 (-0.29%)
ICICI Bank 734.65 (3.54%)
IndusInd Bank 926.65 (1.20%)
Infosys 1711.65 (0.96%)
ITC 220.65 (1.26%)
JSW Steel 660.65 (2.77%)
Kotak Mah. Bank 1937.15 (2.76%)
Larsen & Toubro 1798.10 (0.87%)
M & M 825.95 (0.46%)
Maruti Suzuki 7186.60 (2.04%)
Nestle India 19254.90 (1.25%)
NTPC 125.35 (0.80%)
O N G C 145.90 (1.78%)
Power Grid Corpn 205.80 (1.88%)
Reliance Industr 2381.85 (0.81%)
SBI Life Insuran 1159.15 (0.93%)
Shree Cement 25800.00 (0.73%)
St Bk of India 476.70 (2.45%)
Sun Pharma.Inds. 743.70 (0.89%)
Tata Consumer 760.70 (1.75%)
Tata Motors 481.80 (3.13%)
Tata Steel 1148.80 (3.61%)
TCS 3584.50 (1.36%)
Tech Mahindra 1576.65 (1.60%)
Titan Company 2380.55 (2.38%)
UltraTech Cem. 7299.40 (1.18%)
UPL 726.95 (1.45%)
Wipro 632.40 (1.27%)
What should I know about Indian share market?
by Prasanth Menon 20/06/2017

The Indian share market is a place where shares of public companies are listed for trading. Here, trading shares bifurcate to two sub-categories; the primary market and the secondary market. Investors buy shares directly from the companies in the primary market. In the secondary market, investors trade shares amongst themselves.

In recent times, India had always been a leader as per the GDP rate that averaged around 7-7.5%. The world GDP rate languishes at 2.5%. This portrays India as a growing and lucrative market. Worldwide, the USA contributes 23% of the global GDP, Europe does 20%, China provides 9.3%, Japan provides 8.7% and India provides 2.4%.

The Inside Story

As is the case, any person through a broker can purchase or sell stocks pertaining to one or many companies. This exchange takes place at primary stock exchanges in India; the Bombay Stock Exchange (BSE) and the National Stock Exchange(NSE). Both are situated in the financial capital of India, Mumbai. The Bombay Stock Exchange claims to be the world's fastest stock exchange while the National Stock Exchange was the first exchange in India that provided a computer based electronic trading system. As of March 2017, the BSE and NSE rank 11th and 12th worldwide, respectively.

The market opens for trading at 9.30am and shuts down at 3.30pm, with a pre-open trade session from 9.00am-9.15am. Trade in both the exchange processes through the electronic order book, which is like an electronic shopping list for shares, sorted by their prices. These markets follow a T+2 day settlement cycle period, where T is the day a share got traded and T+2 is the day when the order got settled.

More About Trading Shares

Typically, trading has to be done by choosing an appropriate SEBI registered broker. The broker can be an individual, investment firm or a corporate body. An investor must have a Demat(Dematerialized) account, which is required to trade shares. An order can be placed with the order, with instructions specifying details about buying/selling shares such as price range, stop loss etc. After the trade is executed and a contract has been signed, it would take T+2 days to settle the trade.

After the 1990s, India let in foreign companies to invest here. The investment by foreign companies is possible only after it is registered under the Foreign Institutional Investor(FII) or as a sub to an FII registered company. Lately, the government of India's 'Make In India' initiative has increased the FDI rate to 48%.

Summing It Up

It is to be noted that India is a service driven country. And it is only when the value of other currencies rise( specifically dollar) that many Indian IT/Service oriented companies would reap profits. More profit is equal to a greater capability of expansion, which is again equal to more employment. At present, as the rupee strengthens the IT and Pharmaceutical companies are making losses.

With the world making efforts towards shifting to non-renewable energy sources as primary energy source, prices of crude oil is unlikely to shoot up that adversely affects the Indian economy since India is a heavy importer of crude oil. Latest measures by the central government such as Make in India, Startup India, Skill India and Digital India provides a potential investor with optimism. India's fiscal deficit is around 3.2%, which perfectly in par with the international standard fiscal deficit of 3%. The Indian share market does look like it is heading towards creating another golden year.

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