Stock exchange in India

The stock exchange is also known as securities exchange or course. It is the procedure of selling and buying will be taken place for shares of stock and bonds or any other financial instruments. A person who involves in this procedure is usually referred to as stockbrokers and traders

This security trade on a stock exchange includes stock issued by pooled investment products and bonds, listed companies, unit trusts, and derivatives.

Any security that needs to be traded in a certain stock exchange, that particular security has to be listed here.

Usually, in this kind of stock market, there are two kinds of market. One is the primary market and the other is the secondary market.

A primary market is the one where Initial public offerings of stocks and bonds to inventors is done. The secondary market is the one where subsequent trading is done.

In most cases, Stock exchange is the most important component of the Stock market. In stock markets, supply and demand will change according to many factors that affect the price of stocks, as in all free markets.

In Indian Stock Exchange, there are two main types of stock exchanges. The Bombay Stock exchange and The National Stock Exchange.

They are shortly called as BSE and NSE. Since 1875, The Bombay Stock Exchange has been in existence.

When both BSE and NSE are compared, The National Stock Exchange of India Private Limited can be known as the biggest stock exchange. This is a Mumbai-based stock exchange. When considered in terms of the amount of transactions, NSE can be considered as the biggest stock exchange in India and the world’s third-biggest stock exchange.

Out of 7800 companies listed in the stock exchange, 4000 companies are trading through stock exchanges at NSE and BSE.

Usually, traders who want to participate are gathered to make transactions. These of gatherings will be done either to make profits or cut losses. A person who sells his shares are known as sellers and who buys them are known as buyers.

Let us know about few more stock exchanges. Calcutta Stock Exchange, Cochin Stock Exchange, Inter-connected Stock Exchange of India, OTC Exchange of India, Multi Commodity Exchange of India, U.P stock exchange, Madras Stock Exchange, and many others.

Calcutta Stock Exchange is a smaller stock exchange located in Kolkata. Cochin Stock Exchange is a small stock exchange which is located in Kochi.

The managing director and chief executive officer of NSE were Vikram Limaye. Its currency is Indian rupee. A number of Stock Listings noted in NSE are presently 1952.

Market cap for NSE  was US$2.27 trillion according to 2018 and volume is 28,692 billion rupees which is around US$400 billion according to June 2014. Its indices are NIFTY 50, NIFTY NEXT 50, NIFTY 500.

In 1996, the Nifty 50 index was launched by NSE. As of April 2018, Economic Times estimated that retail investors have invested their savings in stocks with an amount of 60 million. This was done either by direct purchases or through mutual funds.

In the USA and China, the stock amount invested is 27% and 10% respectively.

The World indices that are derivatives trading on Nifty 50 index are :

Trading in Nifty 50 futures on both Singapore Stock Exchange ( SGX ) and Chicago Mercantile Exchange ( CME ).

NSE conducts online exams and provides certification under NCFM programmer certification.

NSE interestingly collaborated with several Universities. Some of them are

• Gokhale Institute of Politics and Economics ( GIPE ) which is located in Pune,
• Bharati Vidyapeeth Deemed University – BVDU located in Pune
• Guru Gobind Singh Indraprastha University located in Delhi

Most notable crashes occurred in the years 1865, 1991, 1992, 2006, 2007, 2008, 2009, 2015, 2016, and 2018.

In the past 20 years, NSE has taken many huge strides in technology. In the beginning, NSE handled only two orders per second. In 2001, it has increased to 60 orders in a second. Nowadays NSE can handle 1,60,000 orders per second. This can be done with an ability to scale up at a short span on demand.