INTRODUCTION TO INDIAN STOCK MARKET

PRATYKSH BLOG 

TOPIC - Introduction to stock market in India

1 BSE 

2 NSE Stock market Introduction

STOCK MARKET -

STOCK MARKET IS PLACE WHERE PEOPLE BUY OR SELL  STOCK 

IN INDIA TWO MARKET

1 BSE - BOMBAY STOCK EXCHANGE

BSE created history on June 9, 2000 by launching the first Exchange-traded Index Derivative Contract in India i.e. futures on the capital market benchmark index - the BSE Sensex. The inauguration of trading was done by Prof. J.R. Varma, member of SEBI and Chairman of the committee which formulated the risk containment measures for the derivatives market.

In sequence of product innovation, BSE commenced trading in Index Options on Sensex on June 1, 2001, Stock Options were introduced on 31 stocks on July 9, 2001 and Single Stock Futures were launched on November 9, 2002.

For a List of Futures & Options Underlying Asset click below :

   Link -BSE

Long Dated Options

BSE also introduced 'Long Dated Options' on its flagship index - Sensex® -on February 29, 2008, whereby the Members can trade in Sensex Options contracts with an expiry of up to 5 years.

Why S&P BSE SENSEX Futures

There are many reasons why S&P BSE SENSEX futures makes sense::

S&P BSE SENSEX as compared with other indices shows less volatility and at the same time gives returns equivalent to the returns given by the other indices

S&P BSE SENSEX is widely used to describe the mood in the Indian stock market. Because of its long history and wide acceptance, no other index matches the S&P BSE SENSEX® in reflecting market movements and sentiments and it makes an attractive underlying for index-based products like Index Funds, Futures & Options and Exchange Traded Funds..

S&P BSE SENSEX is truly investible as it is the only broad based index in India that is "free float market capitalization weighted", which reflects the market trends more rationally and takes into consideration only those shares that are available for trading in the market.

It may be noted that in addition to the S&P BSE SENSEX , derivatives contracts on Indices viz. S&P BSE BANKEX, S&P BSE SENSEX50, S&P BSE Bharat 22 are presently available for trading.

2 NSE - NATIONAL STOCK EXCHANGE 

 National Stock Exchange (NSE) is the leading stock exchange in India and the fourth largest in the world by equity trading volume in 2015, according to World Federation of Exchanges (WFE). NSE was the first exchange in India to implement electronic or screen-based trading. It began operations in 1994 and is ranked as the largest stock exchange in India in terms of total and average daily turnover for equity shares every year since 1995, [based on SEBI data].

NSE has a fully-integrated business model comprising our exchange listings, trading services, clearing and settlement services, indices, market data feeds, technology solutions and financial education offerings. NSE also oversees compliance by trading and clearing members with the rules and regulations of the exchange.

NSE is a pioneer in technology and ensures the reliability and performance of its systems through a culture of innovation and investment in technology. NSE believes that the scale and breadth of its products and services, sustained leadership positions across multiple asset classes in India and globally enable it to be highly reactive to market demands and changes and deliver innovation in both trading and non-trading businesses to provide high-quality data and services to market participants and clients.

Link-NSE