Indian Stock Market
The platform where investors trade publicly listed securities, such as shares, bonds, derivatives, and other financial instruments, is known as the Indian stock market or share market. It plays a vital role in India’s financial market, allowing companies to generate funds through share issuance and investors to be part of the companies’ development.
Key Components of Stock Market
Primary Market: This is the place where companies release new shares to the public for the very first time, which is referred to as an Initial Public Offering (IPO). The main market’s role is to generate funds for businesses.
Secondary Market: In this market, investors can trade existing shares with each other, buying and selling at current market prices.
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Stock Exchanges:
Stock Exchange is a centralized platform for the buying and selling of shares of publicly traded companies. It offers a venue for investors and speculators to engage in the trading of securities, including stocks, bonds, and other financial instruments.
There are two primary stock exchanges in India:
Bombay Stock Exchange (BSE) : Founded in 1875, the Bombay Stock Exchange (BSE) holds the title of being the oldest and biggest stock exchange in India.
National Stock Exchange (NSE) : Established in 1992, the National Stock Exchange (NSE) holds the title for being the biggest stock exchange in India based on trading volume.
Additional stock markets in India consist of the Metropolitan Stock Exchange of India (MSE) and the Calcutta Stock Exchange (CSE).
Different categories of stock market:
Spot/Cash Market: This is the conventional market where stocks are exchanged for instant delivery.
Futures Market: Market where stocks are exchanged for a future settlement date.
Indian Stock Market Hours:
The Indian stock market, including the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), is open Monday through Friday, with the following schedule:
1. Pre-Market Session: 9:00 AM – 9:15 AM (opportunity to submit, adjust, or withdraw orders)
2. Trading Session: 9:08 AM – 9:12 AM (prices are finalized; no additional orders allowed)
3. Primary Trading Period: 9:15 AM – 3:30 PM (usual trading hours with two-way order matching)
4. Ending Session: After 3:30 PM (final prices are established; only orders for after-market can be submitted)
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