The Indian stock market has always been a wonderful avenue for all those investors who wish to reap exponential growth and returns on their stock portfolio. India has recently been a solid emerging market, and the future of India definitely looks strong. With this view, we thought of brining you an article that depicts about what India’ stock market is all about. So all those beginners who wish to invest money in India, may treat this article as a tutorial about Indian stock market, to hone their investment knowledge.
To begin: The Indian stock market has many stock exchanges, but prominently the 2 big ones are:
1. National Stock Exchange – Also known as NSE.
2. Bombay Stock Exchange – Also known as BSE, located at the Dalal Street in Mumbai.
The Bombay stock exchange (BSE):
This stock exchange is located in Bombay, India. It is the largest and the oldest Indian stock exchange. Seventy percent of India’s trading is done at this exchange. SENSEX is the index that was made for the Bombay stock exchange. Its job is to reflect when the stocks go up and down for India and abroad. SENSEX is now very important to the Indian market. SENSEX and The Bombay stock exchange are the reasons for the Indian market growing so rapidly.
The National stock exchange (NSE):
This stock exchange is located in Delhi, India (the nation’s capital). It is the oldest market dealing with bonds. They deal with many different types of bonds, but mainly bonds and governmental bonds. Like SENSEX was the index made for the BSE, Nifty is the index that was made for the National stock exchange. Nifty takes care of around fifty percent of all the bond trades that happen at the NSE. The NSE is trying hard to make equal opportunities for the people not in India to trade. The NSE differs from the other stock exchanges in India because it pays taxes.
What is Sensex and Nifty indexes?
Because SENSEX is the index for the BSE, if the SEXSEX gets higher, that means that the shares of the companies in BSE have gotten higher. It is the same concept if the Sensex gets lower, which means that the shares of the companies in BSE have gotten lower. Nifty does the same thing for the National stock exchange.
There are many different stock exchanges in India, but these two are the most popular ones. Within these two stock exchanges, the majority of the trading is done. This means that the most trading is done within SENSEX and Nifty, making them the most popular indexes in India.
Investing in India made easy for NRIs & Foreign nationals/citizens.
You can invest in many different assets including: Stocks, Bonds, Equity, Currency, Commodities, Real Estate, etc. Gold is so much more pricy than we are used to. Investing in equity is becoming the best idea for investment. You would need to have a zero percent interest rate.
Why Indians living abroad should invest in India: The Benefits & Advantages:
There are many reasons why you should invest in India; here is a list of the major ones mentioning how India is NOT affected by this recession.
·India is doing surprisingly better than anyone else during this recession. This is because they have a lot of savings unlike the United States and United Kingdom.
·India’s population of young adults is outstanding. While other countries are ageing, India will have the majority of young people. This means that a very large percent of India will speak English, the world wide language.
·India has high GDP and low imports and exports, which is another reason why the recession is not hitting them hard.
·The recession has caused car companies all over the United States to shut down and file for bankruptcy, yet the car companies in India are doing really good. This means that people in India have the money to purchase cars during the recession.
The future of the Indian stock market:
Any true trader/investor will tell you that the higher the risk, the higher the reward. The Indian stock market future is very risky as well as any other market. Obviously, there will be times when the market is up and when the market is down. The Indian market is growing faster than many other markets across the world. This portrays an image of a very bright future for the Indian stock market.
Tips to Investing in the Stock Markets of India:
Here is the biggest tip for you if you would like to start investing in India.
- Never let your emotions get to you when you are investing. You need to keep your focus and always pay attention to your losses. Keep them small. Never lose control. You always need to have complete control over when you buy and sell as share. Try your best to never let the losses get to you, try to shrug them off. The main key is to keep your losses small and your winnings big.
- When you invest your money, only invest the amount you can afford to lose. If you decide to invest a bigger amount than you can afford, you emotions will kick in and it is very hard to concentrate and come out with profit at that point. Try your hardest possible to keep your emotions away for trading/investing.
If you are interested, there are websites that can provide you with more tips, education, Indians stock quotes, free financial news, help you with opening demat accounts, trading for NRIs, investment advising that can be very helpful to you, such as: www.NriInvestIndia.com.