Overview of the Indian share market

C.I November 14, 2024

 Overview of the Indian share market


India is the world's third-largest economy and has the fourth-largest Stock Exchange, which also plays a crucial role in the world economy.


Here's an overview of the Indian share market

 

Market Structure:

·       BSE (Bombay Stock Exchange): Established in 1875, one of the oldest stock exchanges in Asia.

Main Index- SENSEX (Fleets of India's leading 30 companies)

 

·       NSE (National Stock Exchange): Established in 1993, India's largest stock exchange by trading volume.       

       Benchmark Index- NIFTY (core performance Index of India's top 50 companies)

 

 

Market Segments:

1. Equity: Shares of listed companies.

2. Derivatives: Futures, options, and commodity trading.

3. Debt: Government securities, corporate bonds.

4. Mutual Funds: Diversified investment portfolios.

5. IPOs (Initial Public Offerings): New company listings.

 

Market Hours:

1. Trading hours: 9:15 AM - 3:30 PM IST (Monday to Friday).

2. Pre-opening session: 9:00 AM - 9:15 AM IST.

 

     ** Regulators:

1. SEBI (Securities and Exchange Board of India): Primary regulator.

2. RBI (Reserve Bank of India): Oversees banking and financial stability.

 

Key Statistics:

1. Market capitalization: Over $3 trillion.

2. Listed companies: Over 5,000.

3. Daily trading volume: Average ₹50,000 crores (~$6.5 billion).

4. Foreign investor participation: Significant, with FIIs (Foreign Institutional Investors) and FPIs            (Foreign Portfolio Investors).

 

Popular Sectors:

1. IT (Information Technology)

2. Banking and Financial Services

3. Pharmaceuticals

4. Automobiles

5. Consumer Goods

6. Infrastructure

7. Realty

8. Energy

 

Investment Options:

1. Direct Equity: Buying individual stocks.

2. Mutual Funds: Diversified portfolios.

3. Exchange-Traded Funds (ETFs): Tracking indices or sectors.

4. Index Funds: Tracking benchmark indices.

5. Systematic Investment Plans (SIPs): Regular investments.

 

Taxation:

1. Capital Gains Tax: 10% (long-term), 15% (short-term).

2. Dividend Distribution Tax: 10% (for individuals).

3. STT (Securities Transaction Tax): 0.1% on transactions.


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