Introduction to Stock Market in India – Beginners Guide to Indian Stock Market.
Introduction to Stock Market in India – Beginners Guide to Indian Stock Market.
How Many Stock Exchanges are there in India?
There are 2 primary stock exchanges in India:
- The Bombay Stock Exchange (BSE); and
- The National Stock Exchange of India Ltd (NSE). It is the Largest Stock Market in Terms of Volume.
- Additionally, there are 22 Regional Stock Exchanges in India.
The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) are the 2 established and leading Indian stock exchanges and both these exchanges together account for over 80% of the equity volume traded in India for all Stock Market Sectors.
Both are fully automated and computerized and are almost equal in size in terms of daily traded volume.
Also Read:
- How Stock Market Works?
- Where to Open Demat Account Online in India?
- How to invest in Foreign Stock Market
Types of Stock Exchange in India
| S. No | Stock Exchange | Type | |
| 1. | Regional Stock Exchange | : | Regional Companies are Listed. Example – Calcutta Stock Exchange |
| 2. | National Stock Exchange (BSE and NSE) | : | National Companies with Large-Cap, Mid-Cap and Small-Cap are Listed. |
| 3. | Multi-Commodity Exchange (MCX) | : | This Exchange is only for Trading in Commodities including Agri and Non-Agri Products like Cotton, Crude Palm Oil, Rubber, Metals, Crude Oil and Natural Gas etc. |
| 4. | National Commodity and Derivatives Exchange (NCDEX) | : | Another Commodity Exchange in India for Trading ONLY in Agri Products like – Cereals and Pulses, Oil and Oil Seeds, Fibers and Spices. |
| 5. | India International Exchange (INX) | : |
India’s first International Exchange in International Financial Services Centre (IFSC) offering Trade in Futures and options, Equity, Currency and Commodity Derivatives, Masala Bonds, Euro Bonds and Green Bonds. |
| 6. | NSE IFSC | : |
Similar to India INX |
| 7. | Indian Commodity Exchange (ICEX) | : |
Commodity Derivatives Exchange in India |
Also Read:
- Top 10 Companies in India by Market Cap
- Types of Investors in Stock Market
- Rakesh Jhunjhunwala Stocks Portfolio
Important Facts about Stock Market in India
- The NSE has about 1500 listed stocks. The BSE has over 6000 listed stocks.
- Most major stocks in India are traded on both the stock exchanges which means that an investor can buy or sell shares on either exchange.
- The primary index of BSE is BSE Sensex comprising 30 stocks.
- NSE has the S&P NSE 50 Index (Nifty) which consists of fifty stocks.
Both the indices are calculated on the basis of market capitalization. They consist of heavily traded shares from all major sectors. The markets remain open from Monday through Friday and remain closed on Saturdays and Sundays and on National Holidays.
Securities and Exchange Board of India (SEBI) Ltd. is the key regulator governing Stock Exchanges, Brokers, Depositories, Depository participants, Mutual Funds, FIIs and other participants in Indian Secondary and Primary Market.
Also Read:
Video: An Introduction to Stock Market in India
Indian Stock Market or Indian Stock Exchange Basics and Facts Explained in Simple Hindi for Beginners.
Beginners and New Investors can Learn all Interesting, Important and Useful Facts and Figures about Indian Stock Market / Indian Stock Exchange.
FAQ – Stock Market in India
How Many Stock Market are there in India?
There are 6 Major Stock Market in India. These are:
| S. No | Stock Market | Permissible Securities |
| 1. | BSE Ltd., |
|
| 2. | Calcutta Stock Exchange Ltd., | |
| 3. | Metropolitan Stock Exchange of India Ltd., |
|
| 4. | Multi Commodity Exchange of India Ltd., |
|
| 5. | National Commodity & Derivatives Exchange Ltd., |
|
| 6 | National Stock Exchange of India Ltd., |
|
What is the Main Stock Market in India?
The NSE or National Stock Exchange of India Limited is the main Stock Exchange in India. It is located in Mumbai, Maharashtra.
Which is the Largest Stock Market in India?
NSE in the Largest Stock Market in India.
All Top Companies of India by Market Cap are listed on both BSE and NSE Stock Exchanges. While The BSE is the older stock market in India, NSE is the largest stock market in terms of volume.
Which is better NSE or BSE?
- BSE would be the first and ideal choice for Investors with Long-Term Prospective.
- NSE would be the first and ideal choice for Intraday Share Trading in derivatives, futures, and options. NSE has better software for high-risk online transactions.
What is SENSEX?
SENSEX Stands for Sensitive Index. It is index of 30 well-established and financially sound companies listed on the Bombay Stock Exchange (BSE).
What is NIFTY 50?
NIFTY stands for National Stock Exchange Fifty. The NIFTY 50 is a benchmark Indian stock market index. It represents the weighted average of Top 50 largest Indian companies listed on the National Stock Exchange (NSE). Like BSE SENSEX, it is one of the two main stock indices used in India.
Conclusion
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Also Read:
- What is Demat Account?
- How to Open Demat Account in India?
- Types of Orders in Stock Market in India
- Circuit Filters and Trading Bands in Stock Market
- What Is Dematerialization in Share Trading?
- Top 10 Mobile Phone Brands in India
- What is Investment?
- Best Investment Options for High Return
- What is Equity Investment?
- Top 10 IT Companies in India by Market Cap
- What is Rolling Settlement Cycle in Stock Market?
- Badla Financing in Share Trading
- What is PE Ratio (Price-To-Earnings Ratio)
- How to Save Money?
- Fundamental Analysis of a Company
- Top 5 Reasons to Invest in Stocks
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