Introduction To Indian Stock Market

 What is a "Stock market" or "Share Market" ?

Basically, Stock Market is a place where there is buying and selling of the company shares. So, obviously it require a specific buyers and sellers to complete this transactions.

Why People always Invest Money ?

Everybody wants to invest their money so that they can protect themselves in the future in terms of financial crisis or something like that.

Stock market is basically a type investment instrument or a product where one can invest their hard earned money to get some returns. There are various investment types where people invest their money. For example Gold, Real Estate, Bank FD, Bank RD etc. Just like all these if we invest our money in the shares of best companies we can get a significant returns.

Indian Stock Market Overview 

To manage or to control the buying and selling of the shares there is a requirement of an exchange which act as a regulatory system. In India, We have two exchanges. NSE (National Stock Exchange) and BSE (Bombay Stock Exchange).

Both exchanges have their separate group of companies called as an 'Index'. In NSE, there is an index called as "NIFTY" or "NIFTY 50" which Consist of top 50 companies of our country. Those companies are also called as Blue chip Companies. In BSE, Sensex is the index which consist of 30 companies. Anybody can trade or invest either in the NSE or BSE. But if you are a beginner trader or investor then I would recommend you to start with only NSE's Nifty 50 shares for ease. 

In Market there are companies which comes under various types of sector. For example Banking Sector, Automobile Sector, Metal Sector, Pharma Sector, FMCG Sector and IT sector. Each Sector have their own separate indices.



There is a detailed information on "www.nse.com" where you can get to know about Indices, Sector specific stocks and everything you want to know.

In the next blog we will know about how to start trading or investing in the stock market.


 


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