A Glimpse Into The Share Market In India

By Author: Ramesh Goenka
Total Articles: 3
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The Indian economy is now in a thriving state having witnessed unprecedented growth and development in the recent years and contributing in considerable proportions to the global financial market. Being labor intensive as well as cost-effective at the same time, it has invited many several outsourced jobs from developed countries, while improvising on building up a formidable platform for exports and manufacturing industrial framework. And in this throbbing economy the Indian share market has a considerable role to play. Here is a peek into the share market in india and the factors affecting it.

Indian Stock Exchange

The Indian share market is reigned by two stock exchange giants known by the names of National Stock Exchange or NSE also called NIFTY and Bombay Stock Exchange or BSE also referred to as SENSEX. The former comprises the largest one in India from the perspective of daily turnover and third in the global financial market when it comes to number of equity trades. It has also acquired the second rank ...
... in the global Stock Exchanges in terms of growth. The other prominent Stock Exchange BSE forms Asia’s oldest and the 12th largest in the global economy.

The Stock Exchanges in India have a pivotal role in the growth of Indian economy. They form one of the major sources of meeting capital requirements by issuing shares invested in the stocks. In order to augment its capital and issue shares where various investors can invest the companies require enlisting themselves with the stock exchanges. Of course, there are some rules and regulations which you require following as a company to get listed with either or both of NSE and BSE. The Stock Exchanges thus forms a platform for buying and selling of stocks by institutional and retail investors.

How Does Trading Take Place in the Stock Market

The trading mechanism of the Stock Exchange market involves that of open electronic limit order book done with the help of trading computer which matches the order. The whole process of order-matching is done automatically without the presence of any market specialists. This brings in greater transparency while the identity of buyers and sellers of stocks remain anonymous.

Factors Influencing Share Market

Investing in share market in India as with the global counterpart involves both losses and gains predicting which is quite difficult. It is affected by a number of factors, some of which are enumerated below.

Demand and Supply forms one of the major factors influencing the share market. When there is excess purchase of particular stocks the prices of those specific stocks rise and when there is more selling of stocks, their prices take a downward curve.

Earnings Per Share refers to the quarterly profit of a company per share which affects and leads to the increase in stock prices.

Market capitalization decides the actual worth of company which in turn influences the prices of shares.

Investing in share market requires an in depth knowledge of the market and therefore, should never be done in haste.

About The Author:
Ramesh Goenka is the author of this article. Here you can learn basics of global financial markets, stock market investment and bse stock exchange. For more information on share market in India, visit http://www.rameshgoenka.com/