The Indian Equity Market is also generally known as the share market. The forces moving the market depend mostly on monsoons, global funds flowing into equities and the performance their ways of different companies.
The Indian Equity Market is almost completely dominated by two chief stock exchanges - National Stock Exchange of India Ltd. (NSE) and The Bombay Stock Exchange (BSE). The benchmark indices of the two exchanges - Nifty of NSE and Sensex of BSE are directly followed. The two exchanges also have an F&O (Futures and options) segment for trading in equity derivatives including the indices. The main players in the Indian Equity Market are Mutual Funds, Financial Institutions and FIIs representing mostly undertaking Capital Funds and Private Equity Funds.
Every one want trading on the Indian bourses is accepted out in dematerialized form. Shares held in material form remain illiquid and cannot be sold in advertise by any investor because there is no liquidity for physical stocks. Furthermore, SEBI has mandated that securities be sold only in dematerialized form in the T+2 rolling settlement systems. SEBI has also mandated that all IPO’s be traded compulsorily in the dematerialized form.
Indian Equity Market at present is a beneficial field for investors. Indian stock is profitable not just for long and medium-term investors but moreover the location traders, short-term swing traders and also extremely short term intra-day traders. In India as on December 30, 2007, market capitalization (BSE 500) at US$ 1638 billion was 150 per cent of GDP, similar fine with other emerging economies and elected matured markets.