5 things you should know about Indian Share Market


The Indian share market.

It sounds so fancy when I spell it out like that, doesn’t it?

Want to know a secret?

It’s not fancy at all. It is however, integral to the functioning of the Indian economy and therefore, very very important.

There are many stock exchanges in the Indian share market. The two most important ones are the Bombay Stock Exchange or BSE and the National Stock Exchange or NSE.

There are a lot of things that one should know about the Indian share market. All the information could probably fill an entire library.

Let me try to give you a brief insight into this backbone of our country’s economy.

A share market is a place where the shares or stocks of listed companies are traded. The share market can be broken down into two broad categories, the primary market and the secondary market.

A company issues its shares to the general public so as to raise fresh capital in an initial public offering (IPO) or a further public offering (FPO)in the primary market. A secondary market is referred to the market where the issued shares are bought and sold by the participants in the market.


I am listing five things that you should know about the Indian share market which you may not be knowing of.


Image source: TheHinduBusinessLine


1) Huge number of Listed Companies:

As I’m sure you can imagine, the number of companies listed on the BSE or NSE is mind-boggling. There are more than 5500 companies listed on the BSE itself. This figure is massive even when compared with most stock exchanges around the world. There are more than 1600 companies listed on NSE. BSE is the oldest stock exchange in Asia.

2) Market Capitalization:

The BSE and the NSE fall under the top 20 stock exchanges in the world where the market capitalization of the listed companies is the highest.

The overall market capitalization of the Companies listed in the BSE and NSE isUS$1.43 trillion and US$1.41 trillion, respectively.

3)Low Participation:

India is a country which ranks second in the world in terms of population which is over 1.2 billion. As per records of the National Securities Depository Limited(NSDL), the total number of Demat accounts in India is only around 20 million. So, most people in the country do not participate in this huge stock market.

4) Category of Investors:

In the Indian share market,

the participants constitute of the retail investors and institutional investors. There are two types of institutional investors:

1) Domestic institutional investors (DII):

DIIs are the domestic that is Indian entities or organizations that invest in the Indian stock market such as Mutual funds, hedge funds, insurance companies, pension funds, etc.

2) Foreign Institutional investors (FII):

FIIs are the foreign entities or organizations that invest in the Indian stock market

FIIs are the biggest investors in the Indian share market.

You can learn about FII and DII here:

5) Number of Stock Exchanges:

Most of the share trading in India take place in the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). Apart from these are 22 recognized stock exchanges throughout the country as well.


As I mentioned before, the Indian stock market is like an endless rainforest. The sheer size and bulk of the transactions is almost impossible to fathom.

The Indian Stock market provides a computerized platform to the traders to carry out buying and selling of shares and securities. A stock market is an indicator of the health of the economy of the country. If the prices of the financial instruments are rising it means that India’s economy is running on the path of development. The opposite happens when prices are on the decline.

So, by monitoring the performance of the stock market, you can actually figure out whether a country is doing well.

I’ve tried to provide you with a few key pieces of information here, but of course there is a lot more. If you would like to add something or express your opinions, feel free to do so. And keep studying and monitoring the stock market. It’s a prerequisite for a successful trader. Happy trading/investing!

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