Indian Stock Market

How do you think the market will react after budget? Which sector is good for investing - pharma or IT? Should I apply for this IPO? At what price will this share be listed? Is this share good for the long term or the short term?

Well, these are the questions or topics that you can find people discussing nowadays. Everyone wants to invest in shares as they see it as a fast medium to earn money. However, there are many factors which should be kept in mind while investing your hard earned money in the share market.

Before we talk about the other issues related to Indian stock market, let us find out how it all started.

It all started in 1875, when 318 persons came together to form Native Shares and Stock Brokers Association and the membership fee was Re.1.00. This association is now known as the Bombay Stock Exchange (BSE) and in 1965 it was given permanent recognition by the Government of India. National Stock Exchange (NSE) is the second popular stock market of India. Sensex or the 30 stock sensitive index was first compiled in 1986. Nifty is the stock sensitive index for NSE.

In 1992, the Securities Exchange Board of India (SEBI) was formed by the Government of India through an Act, in order to keep an eye on the working of Stock Markets. This move was made as a result of the scam by Harshad Mehta, a stock broker. This scam made 8 to 12 million investors bankrupt. SEBI acts as a watchdog and works in order to protect the rights and interests of investors.

The increasing popularity of the stock market can be understood by the fact that 10 lakh demat accounts were applied for in 4 days, in order to apply for Reliance Power IPO.

Indian stock market is such a vast topic that a discussion on this topic will never end. So let’s start it now.

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