Stock Exchange India- Know it Before Investing In It

Stock exchange India is the most important constituent of a stock market. The stock prices and valuations in a stock exchange market climbs and drops driven by numerous factors and by the whole resultant demand-supply equation. In India, about 23 stock exchanges operate throughout the country, of which are 2 are its most important and sorted stock exchanges.

Parts of Stock Exchange Market

Stock exchange India markets are divisible in two definite parts- primary stock exchange market and secondary stock exchange market.

• The primary stock exchange market is meant for the initial public offerings (IPO) of stocks to the investors.
• On the other hand, secondary stock exchange market comes into the picture when the shares get listed on the stock exchange post IPO. The secondary market involves subsequent buying and selling of stocks in the stock exchange India.

Significance of NSE and BSE

The two most significant exchanges in the stock exchange India are National Stock Exchange (or NSE) and Bombay Stock Exchange (or BSE)

National Stock Exchange, also located in Mumbai, is an electronic stock exchange that uses an index of 50 stocks, known as Nifty. Here is some trivia on National Stock Exchange (NSE) .

• It is among the top 9 stock exchanges in the world in terms of market capitalization.
• NSE is the largest stock exchange in India with respect to the daily turnover and volume of trades, for equities as well as derivative trading.

Bombay Stock Exchange, as the name suggests, is located in Mumbai, India. The index used by BSE is called Sensex which is a collection of 30 stocks. Following are some interesting facts about Bombay Stock Exchange (BSE).

• It happens to be the first stock exchange in Asia.
• It is among the top 4 stock exchanges in Asia and among the top 8 stock exchanges in the world in terms of equity market capitalization.
• BSE possess the maximum number of listed organizations in the world.