Explain Indian stock market

Answer 1

A Stock Exchange is the place where investors go to buy/sell their shares. Once a company's public offering is complete, it gets listed in a stock exchange. After listing it would be available for trading to all investors in the stock exachanges where they are listed. In India we have two major stock exchanges. They are:

1. The National Stock Exchange (NSE) &

2. The Bombay Stock Exchanges (BSE)

National Stock Exchange:

The NSE is India's largest and the worlds third largest stock exchange in terms of Transaction volumes & amounts. The NSE is based out of Bombay.

NSE Index or NIFTY:

The NSE Index or the Nifty Index as it is popularly known, is the index of the performance of the 50 largest & most profitable, popular companies listed in the index. Each company that is part of the index has its own weightage in the value of the Index. The value of the Nifty Index is the weighted average of the prices of these 50 companies.

Bombay Stock Exchange:

The BSE is the oldest stock exchange in Asia. It is situated in Dalal Street in Mumbai. It is the third largest stock exchange in South Asia and the tenth largest in the world. BSE has over 5000 companies that are listed in it.

BSE Index or SENSEX:

The BSE Index or the Sensex as it is popularly known, is the index of the performance of the 30 largest & most profitable, popular companies listed in the index. Each company that is part of the index has its own weightage in the value of the Index. Since the number of countries involved is lesser, the index variations are higher when compared to the Nifty index.

Answer: A Stock Market is a general term used for all the places where trading in a company's shares takes place. A stock exchange is an actual physical entity where listed stocks are bought and sold by investors.

In India, there are two major stock exchanges - the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE). Nifty, which is the index of NSE, consists of 50 stocks and Sensex, which is the index of BSE, consists of 30 stocks.

If you're interested in investing in the stock market, you may want to consult a professional broker.