What is Stock Market ?

The stock market in India is a marketplace where shares of publicly listed companies are bought and sold. It provides a platform for companies to raise capital by issuing shares to the public and for investors to buy and sell these shares in order to make profits.

Key Components of the Indian Stock Market:

1. Stock Exchanges:

   • The two primary stock exchanges in India are:

     • Bombay Stock Exchange (BSE): Established in 1875, BSE is Asia's oldest stock exchange and one of the largest in the world.

     • National Stock Exchange (NSE): Established in 1992, NSE is the largest stock exchange in India in terms of market capitalization and trading volume.

   • Both exchanges are regulated by the Securities and Exchange Board of India (SEBI), which ensures fair trading practices and protects investors.

2. Indices:

   • Stock market indices represent a subset of the overall market and track the performance of a group of stocks.

   • Sensex (BSE) and Nifty 50 (NSE) are the two most prominent indices in India. The Sensex tracks the performance of 30 financially strong companies listed on the BSE, while Nifty 50 tracks 50 top-performing companies listed on the NSE.

3. Market Participants:

   • Investors: Individuals and institutions (such as mutual funds, pension funds, and hedge funds) who buy and sell stocks.

   • Brokers: Registered entities that facilitate the buying and selling of shares on behalf of investors.

   • Regulators: SEBI regulates and oversees the functioning of the stock markets to protect investors' interests and maintain market integrity.

4. Market Hours:

   • The Indian stock market operates from 9:15 AM to 3:30 PM (Indian Standard Time) on all working days except on holidays declared by the exchange.

5. Types of Markets:

   • Primary Market: Where companies issue new shares to the public through Initial Public Offerings (IPOs).

   • Secondary Market: Where existing shares are traded among investors. This is the main activity seen on the stock exchanges like BSE and NSE.

6. Investment Instruments:

   • Besides shares, other investment instruments like bonds, derivatives (futures and options), ETFs (Exchange-Traded Funds), and mutual funds are also traded.