Mark Twain once divided the world into two kinds of people those who have seen the famous Indian monument, the Taj Mahal, and those who haventh
The same could be said about investors
All orders in the trading system need to be placed through brokers, many of which provide an online trading facility to retail customers. Institutional investor can also take advantage of the direct market access (DMA) option in which they use trading terminals provided by brokers for placing orders directly into the stock market trading system
The same could be said about investors
There are two kinds of investors those who know about the investment opportunities in india.
The BSE and NSE
Most of the trading in the Indian stock market takes place on its two stock exchanges: the Bombay stock exchange (BSE) and the National stock exchange (NSE).
Almost all the significant firms of India are listed on both the exchanges NSE enjoys a dominant share in spot trading with about 70% of the market.
Trading Mechanism
Trading at both the exchanges takes place through an open electronic limit order book in which order matching is done by the trading computer there are no market makers or specialist and the entire process is order driven, which means that market orders. As a result, buyers and sellers remain anonymous.
Settlement and Trading Hours
Equity spot markets follow a T+2 rolling settlement. This means that any trade taking place on Monday gets settled by Wednesday. All trading on stock exchanges takes place between 9:55am to 3:30pm, Indian standard time (+5.5 hours GMT), Monday through Friday. Delivery of shares must be made in dematerialized form, and each exchange has its own clearing house, which assumes all settlement risk by serving as a central counterparty.
Market Indexes
The two prominent Indian market Indexes are Sensex and Nifty. Sensex in the oldest market index for equities; it includes shares of 30 firms listed on the BSE, which represent about 45% of the index's free-float market capitalization.
Market Regulation
The overall responsibility of development, regulation, and supervision of the stock market rests with the securities and exchange board of India (SEBI),
The Bottom Line
Emerging market like India, are fast becoming engines for future growth. Currently, only a very low percentage of the house hold savings of India are invested in the domestic stock market, but with GDP growing at 7%-8% annually and a stable financial market, we might see more money joining the race. Maybe it's the right time for outside investors to seriously think about joining the India bandwagon.
Note:-Invest money by professional advice or guidence.
An introduction to stock market part-2 coming soon
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