THE OVERVIEW OF THE INDIAN STOCK MARKETS

 THE OVERVIEW OF THE INDIAN STOCK MARKETS

In India, there are primarily two stock exchanges namely. The National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). Apart from these two, there a few national and regional stock exchanges. However, most of the trading happens though NSE and BSE.

80% of the trading takes place at the NSE and BSE only. They both are almost similar in terms of daily traded volume and most of the key shares have been listed on both the exchanges so that the investors can buy from any of them.

Both the markets work for 5 days a week and remain closed on Saturday, Sunday and on all national holidays. Transactions in shares are done through online computerized systems. The trading system of BSE is known as BOLT (BSE Online Trading) and that of NSE is known as NEAT (National Exchange Automated Trading).  The online trading system has facilitated the traders with more transparency, efficiency, automatic order matching and speedy processing of the transactions in comparison to the earlier systems of traditional offline trading.

MARKET INDICES

The Market Indices help us to determine whether the markets are up or down.

The S&P BSE SENSEX is the primary Index of BSE. It consists of 30 stocks.

The Nifty 50 Index comprising of 50 stocks is the market index of NSE.

Both the indices are calculated based on the market capitalization and include heavily traded shares from key sectors.

MARKET REGULATOR

SEBI- Securities and Exchange Board of India is the main governing body that regulates the functioning of all the stock exchnages, broker, depositories, mutual funds and othe market participants in India.