What is Indian Stock Market? | How to learn Indian Share Market?

“If you want to earn money quickly, then invest in Indian stock market.

“Earn thousands by investing Rs 100.”

We see, hear such advertisements daily, but can we really earn so much money by investing in the Indian stock market. Listening to the inspiring story of Rakesh Jhunjhunwala ji, the Indian stock market does not seem less than an ideal profession. Today we are going to give you all the right information related to the Indian stock market, which can show you the right way to invest.

What is Indian stock market? | What is Indian Share Market?

Indian stock market is a market where companies from all over the country list their shares, and it is bought and sold by the customer. The shares of big companies of India are included in this list, such as Tata, Vodafone, Reliance etc. Whatever company’s share we buy, whatever percentage it is, we are the owner of that company. The share price keeps fluctuating higher and higher, and is completely dependent on the company’s profits. Understand that today we have bought a company’s share for Rs 100, and tomorrow due to the profit of the company, if its price increases, then we gain, if the price decreases then we lose.

Two main types of Indian stock market.

There are two main types of Indian stock market,

  1. Primary Share Market
  2. Secondary Share Market

Primary Share Market

It is a place where the company registers itself, issues some shares for sale. Which simply means, the company lists itself in the market.

Secondary Share Market

In the secondary market, an investor buys and sells shares from another investor. After selling securities from the primary market, it comes to the secondary market. Generally, investors take the help of a broker for such investments, which works as a transaction between the two markets.

What is BSE and NSE?

If we talk about equity Indian stock market in India, then there are two main stock exchanges, first BSE means Bombay Stock Exchange and second NSE means National Stock Exchange. BSE and NSE are considered to be the largest stock exchanges in India, as well as the largest stock exchanges in the whole of Asia along with Hong Kong, China, Japan.

What is NIFTY and SENSEX?

Sensex This word Sensitive Index is based on these two words. The Sensex is a benchmark of the Bombay Stock Exchange, which was started on 1 January 1986, in which the top 30 companies of India were included. Sensex Indian is very important to show the ups and downs in the Indian stock market.

Nifty is an index of the National Stock Exchange. It includes the largest and top 50 companies trading on NSE, which is involved in 14 different sectors. Nifty National and Fifty are made up of these two words. Nifty is also known as Nifty 50.

There are 4 financial instruments in the Indian stock market.

  1. Bond
  3. Derivatives
  4. Mutual Fund


It means investing by lending money to others. It can also be called a debt instrument in a way.


The buying and selling of shares takes place in the Indian stock market. You can also be the owner of the company for some percentage by buying the shares listed by the company.


The price of shares keeps fluctuating. This is not the case with derivatives. Derivatives allow you to buy, sell and settle at a fixed price.

Mutual Fund

Mutual funds are an indirect way to invest in the Indian stock market and bonds.

How to invest in Indian stock market?

If you are investing in the primary market, then all this process is done through IPO. In this process the company accepts the applications received by the company. And investors buy and sell shares in the secondary market with these shares.

Now if you want to buy shares from an investor in the secondary market, then first you have to register for which you have to open a demat account. Now this demat account is linked with your bank account through which all the transaction process takes place.
Now after logging into the demat account, you have a list of thousands of shares, which you can buy or sell. While buying shares, you have to keep in mind that you need to have that much money in your bank.
Now you have to set the price of your shares, and wait for the buyer to buy those shares. After this transaction, you get either the shares or the money. It depends on your behavior.

What documents do you need to open a demat account?

Given below is the list of documents you need to open a demat account.

  1. Aadhar card
  2. pan card
  3. passport size photo
  4. Cancel Check Off Active Bank Account
  5. income proof
  6. address proof

How to learn Indian stock market?

Read books

The best and best option is to read books on the Indian stock market to understand the strategies related to the Indian stock market. There are thousands of such books available in the market, but after doing a little research on some of the best rated books, you can understand which book you should read and which one will prove beneficial for you.

Seek the advice of an advisor.

An Indian stock market advisor will only give you the right advice through his years of experience in this field. Experience matters more than what a course or books can learn. Taking advice from an advisor you know is also essential for learning the Indian stock market.

Online Courses

You must have seen advertisements of many online courses to learn the Indian stock market. You can complete the online course through your laptop or computer. Apart from this, as a beginner, you also get the knowledge of statrgiz along with the basics.

Analyze the market thoroughly.

When it comes to analyzing the market, news is the best option. Keep yourself updated daily about the news related to Indian stock market. Political, Economic, and Global on Indian Stock Market

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