A brief outlook of the equity market in India

by khalid on 23/08/2012 · 0 comments

The Indian economy is opening up like never before. If you are someone who has always considered that the equity market in India is too unimportant to consider, you may be proven wrong. The thing with the Indian equity market is that unless you know the things about it, it seems unimportant. This article will give you a brief outlook of what’s happening in the equity market in India.

The NSE and the BSE

The NSE or the National Stock Exchange and the BSE or the Bombay Stock Exchange are the two exchanges where equity trading is done in the country. Though the latter is the older one, the former too has its benefits. Almost all the big firms in the country are listed in both the exchanges. It will be a good idea if you educate yourself as much as possible about the the stock exchanges before putting your feet in the trade.

equity market in India

The mechanism of operation

If you want to trade in the equity market in India, the open electronic trading book is how the trading will take place no matter what exchange it is. There are many brokers working in the Indian equity scene. It is a good thing that a lot of brokers offer online trading facilities to customers. This ensures that one can not only avail of the by-phone operating mechanism, but can access the online platform easily as well.

Indexes

The Nifty and Sensex are the two most important indexes that operate in the Indian equity market. For equities, the Sensex is the index that rules and it lists 30 firms that make up 45% of the Bombay Stock Exchange.

Foreign investments

India has started permitting foreign investments in its equity market. There are two kinds of foreign investments that can be made. They are: (1) FPI or Foreign Portfolio Investment or FLD or Foreign Direct Investment.

How to get into the Indian equity market

The Indian equity market is by no accounts small. Getting into it is not a problem at all as there are a lot of equity brokerage firms which will take you in. It is a good idea to make sure that you choose the best firm you get as that way you will get yourself a good broker. Having a good relationship with your broker is of prime importance because he is the one who will be conducting the trades on your behalf. Your broker must be someone you trust, who is smart and efficient. A matter of a few seconds in a fast moving market as India can mean huge losses.

Educate yourself

It is a good thing if you already have experience trading in the stock or foreign exchange market as that will give you necessary inputs about how the equity market behaves in India. But in case you happen to be a novice, it will be a pretty good idea if you educate yourself about the workings in the market before investing any serious money.

Author-Bio :  Shabbir learned the art of making money from the market the hard way, i.e. loosing the hard earned money and then learning it but he don’t want the same process to repeat for others and so he shares how retail investors can learn technical analysis and chart patterns. Check out his collection of free tutorials on Technical Analysis on his blog shabbir.in

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