Basics of Indian Stock Market

The Indian stock market functions as a platform where publicly listed companies’ shares are traded. Two key exchanges—the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE)—lead this process. They work to maintain fair trading practices, provide liquidity, and ensure transparency, allowing investors to buy and sell shares efficiently.

Investors engage in two primary segments of the market: the primary market, where companies raise funds by issuing new shares through Initial Public Offerings (IPOs), and the secondary market, where existing shares are traded.

Performance in the market is tracked by two significant indices: the BSE Sensex and the NSE Nifty. Trading activity occurs via brokers, with oversight by the Securities and Exchange Board of India (SEBI), which is responsible for ensuring investor protection and the market's integrity.

For smart investing, staying updated on market trends, analyzing company fundamentals, and investing in broader economic conditions are essential.