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in Business Service - 30 Aug, 2016
by OAuthor - no comments
An insight to the Indian stock market

Considering the glory that the Indian stock market has all over the world, it is generally said that the traders are of two types, one who trade in the Indian stock markets and the others who haven’t got a chance to! India is a land that offers abundant investment opportunities and the Indian stock market today can help you yearn returns like no other market in the world. This write up discusses an overview about the Indian stock market and everything that you being a newbie investor would want to know before trading here in India.

India basically has two stock exchanges where the trading is done; one is the National Stock Exchange, known as NSE while the other is Bombay Stock Exchange, known as BSE. The BSE has been in function for more than 120 years now and was formed in 1875. The NSE in comparison to BSE is relatively new and was formed in 1992 but the official trading began only in 1994. Apart from the name and some other miniature aspects, there is not a lot of difference between these two exchanges. Be it the style of trading or the duration for which the stock market opens up, most of the things are completely the same in both of these exchanges.

There are more than 4000 firms that are traded on at BSE and the number of firms that are traded on NSE is close to 1000. Although this is a huge difference, but most of the firms that are big shot brands and hold significant position in the markets are traded on both of these exchanges. For all those traders who prefer spot trading, NSE is the choice while for those who have the time and patience to invest for a longer duration prefer the BSE.

As mentioned above there are many similarities between both of the exchanges and the style of trading is one such thing. The trading is done on the BSE and NSE through a process that is completely driven by the trade orders that are placed throughout the working time of these exchanges. Considering this and the fact that there is no specialist ruling board in between the traders who buy and sell stay anonymous all the time.

In India, no matter through which exchange you trade, you have to place all of your trade orders only through the brokers as this can’t be done directly by individual traders. These days you can easily get your trading accounts opened with any of these brokers and then start your trade activities online as well. There are many advisory firms as well that design your portfolio as per your requirements and then guide about how to invest in stocks.

As per the trade timings, both of these exchanges take trade orders on working days from Monday to Friday from 10:00 AM to 3:30 PM. One needs to have a demat account as well as once you buy a few stocks, they are delivered in the demat account only.