Present Indian Stock Market Scenario

The Indian Stock Market is a collection of various regional and national level stock exchanges in India. It is platform for the masses of the country to invest their savings and also as a source of funds for various organizations and institutions that feature in business category.

What is Indian Stock Market ?

Indian Stock Market contains more then 20 Stock Exchanges, some of which are popular nationally as well as regionally. The first stock market started in the country was the Bombay Stock Exchange (BSE). Its the oldest stock market in Asia and was established as “the Native Share and Stock Broker's Association” in the year 1875.It has around 5000 listings and a volume of more than US$ 1 Trillion. The other most popular Stock Exchange is the National Stock Exchange (NSE). Its also the largest Stock Exchange in the country and third in the world. These two exchanges constitute a major part of the Indian Capital Market.

What is their purpose ?

Stock markets basic role is to provide a platform for the masses of the country to invest their savings and also as a source of funds for various organizations and institutions. It provides an opportunity for any person to become a part-owner of the company by buying the companies shares. These shares can be sold and exchanged as well as used as collateral in certain cases. One can deal in a variety of financial instruments in a stock market such as Equity which has already been explained, Future's, Retail Debt, Wholesale Debt, Currency Future's, Derivatives, Bonds etc. Trading can only be performed by a registered broker of the respective stock one wants to deal in or through a broker.

Impact on The Economy

The stock market has both positive and negative effects on the Indian Economy. Some of which are listed below

Provides a source of funding for organizations
An investment avenue
A source of income for investors
A source of revenue for the government in the form of taxes
A source of employment opportunities
Meeting place for investors and organizations
Idle funds of common investors can be used for profitable purposes

Present Scenario

The current condition of Indian markets have drastically improved. There is absolute transparency and instant transactions. All Indian Stock markets are now computerized and Internet Trading has become a common phenomenon. Indian stock markets have also developed a dynamic nature and can change from a bullish temperament to a bearish slide. Any small bit of information or even a rumour from any part of the country can affect the market and is a fairly accurate indicator of the prevalent atmosphere in the region or country. People from across the country and globe get in touch with minute wise readings on the stock market and gain a lot of trading aptitude after daily seeing BSE Stock Gainers or BSE top losers list which does a world of good to their investment portfolio.

Conclusion

The Indian Stock Markets can be a very rewarding avenue of investment but the constant changes and the inherent dynamic nature of the markets can wipe out your funds or savings within a minute. Thus, the key words for every retail investor is to be constantly alert and very observant. Don't always rely on the daily list of BSE top gainers or BSE top losers as it only takes a minute to get the things changed here. Keeping ones eyes and ears open can the insure the investor against any major losses. Following such rules and with some experience and practice, one can emerge victorious and can churn out a fortune for himself as well. Hence, it is a way to turn your savings into a fortune.