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HOW TO INVEST IN INDIAN STOCK MARKET ?
Well many of us wants to earn money by investing or by doing business. But before that we need some basic idea about the stock market otherwise it may be drastic plan to invest. This scenario is not only for Indian Stock Market but it is for the whole market around the world. So, in this tutorials we are going to learn about the Indian stock market. LET'S GET STARTED.............What Is Share Market ? We should first come to known that what the share market is and why it is necessary to known about it. The BSE is the world’s 11th largest stock exchange with an overall market capitalization value of $1.43 Trillion and this data is based on March 2016 data. More than 5500 companies are publicly listed on the Bombay Stock Exchange.
A stock market is where the shares are issued and traded. A stock market is the very important market where the value of your currency as well as value of your future also decided. A stock market is very similar to share market. The main difference is the stock market allows you to trade financial instruments such as bonds, mutual funds as well as shares of the companies. But Share Market only allows the trading of the shares. A one can easily buy the shares or sell them if they are listed on the exchange. The main premier Stock exchanges of India is the National Stock Exchange and Bombay Stock Exchange. We can easily buy shares and any assets easily but we should have a "Demat Account". Now there are many important things we should known before entering the market i.e. Sensex , Nifty , Demat Account , etc. INDIAN STOCK MARKET IS WORKING ON FREE FLOATING METHODOLOGY.
What is Sensex ? Sensex is basically the benchmark index of Bombay Stock Exchange and it comprises of 30 Huge Stocks which is actively traded on the stock exchange. The value of Sensex is basically Depend on these Major 30 stocks. If these 30 major stocks will gain then the market value of the Sensex will go upside and indicates that the market is profit booking. Sensex is the major indicator of the Indian Stock Market and this show the or give's hint about the situation of the market. If the Sensex is on gaining position than it indicates that the economy is growing & the prices and demand of the stocks is increasing. Sensex is also know as S&P BSE Sensex on BOMBAY STOCK EXCHANGE.
What is NIFTY ? NIFTY basically describes N for National Stock Exchange and the remaining words are stands for the word Fifty. So Nifty is also called as NIFTY 50. NIFTY show the situation of National Stock Exchange (NSE) and Sensex shows the situation of Bombay Stock Exchange (BSE). Nifty is owned and managed by India Index Services and Products (IISL). Nifty comprises of 50 Top Stocks from 24 Sectors. These 50 Top Stocks decides the value of Nifty. The working of Nifty is exactly similar to Sensex. The Nifty was included in the index in the year 1995 and the base price is set to 1000. If Nifty is goes upside that is in gaining position it shows that the National Stock Exchange is in profit booking position.
What is Demat Account and Why it is needed ? Demat stands for Dematieralized Account. Demat account is used to buy Shares and hold them in electronic form. It mades the trading of stock easy and provide a conveinient way to trade on Stock Exchanges. A Demat Account is of Two types. i.e. NSDL and CSDL. So , we are stopping here for the day and will continue to learn in the next post. Do Upvote & Comment .
