Stock Markets in India

Stock Market is the financial market, where already issued shares and their derivatives like futures and options of different companies are traded. The place, where these securities are traded is called Stock Exchange, e.g. Bombay Stock Exchange (BSE), National Stock Exchange (NSE), etc.

Types of Financial Markets

The financial market meant for the short term funds is called Money market and the financial market meant for the long term funds is called the Capital market.

Since 1991, Indian capital market has been getting broadened significantly and the volume of savings and investment has shown significant improvement.

Capital market comprises of primary and secondary markets. Primary market handles the trading of new issues or Initial Public Offering (IPO) of stocks and other securities, while secondary market handles the trading of already issued securities.

One more significant classification in the capital market is done on the basis of the type of security that is traded. They are classified as stock market and bond market.

BSE Sensex

• It is the index of Bombay Stock Exchange. 1978-79 is taken as the Base year for Sensex and the base value started with 100 index points.
  
  
• Sensex comprises of 30 most actively traded scrips on BSE.
  
  
• BSE is situated in Mumbai.

NSE NIFTY-50

• It is the primary index of National Stock Exchange. The base year for NIFTY-50 is 1995 and the base value started with 100 index points.
  
  
• It is also situated in Mumbai.
  
  
• It comprises of 50 most actively traded scrips on National stock Exchange.
  
  
• The present index values are different for NIFTY-50 and SENSEX because of difference in base years.