The Indian Stock Market has always been a wonderful avenue for all those investors who wish to reap exponential growth and returns on their stock portfolio. India has recently been a solid emerging market, and the future of India definitely looks strong. With this view, we thought of brining you an article that depicts about what India stock market is all about. So all those beginners who wish to invest money in India, may treat this article as a tutorial about Indian stock market, to hone their investment knowledge.

The Indian stock market has many stock exchanges, but prominently the 2 big ones are:
1. National Stock Exchange - Also known as NSE.
2. Bombay Stock Exchange - Also known as BSE, located at the Dalal Street in Mumbai.

Before we get into more debt about the Indian markets, lets see what an index is? Well a stock market index is a list of stocks showing that stocks complex value. It is used to tell the difference between each stock. Most of the stocks are very similar otherwise. A lot of the stocks come from the same industry or stock market exchange.

There are many different types of indexes. First is the broad-base index & this index reflects how the whole stock market is doing & how investors currently feel about the economy. The index that is used the most is the broad-base index. It shows blue chip stocks and big stock exchanges around the world, such as, NIFTY (index from NSE) and SENSEX (index from BSE). These are India Stock Exchanges. NSE stands for National Stock Exchange & the BSE stands for Bombay Stock Exchange.


What is BSE? The Bombay stock exchange: This stock exchange in Bombay is the biggest stock exchange and the oldest stock exchange in India. The most trading goes on at this stock exchange, almost 75%. SENSEX was made to reflect the stocks at the BSE. It shows when the stocks increase and decrease. This index is both for India and International. The market started using a Free-float technique and now many major markets across the world use the same. SENSEX is looked at as one of the biggest parts of the India stock market. Because of this big stock exchange and SENSEX, the markets keep growing and growing.

What is NSE? The National stock exchange: This stock exchange is India’s oldest debt market. It is located in Delhi, India. This stock exchange mainly deals with bonds and government bonds. Nifty is the index for the National stock exchange. Nifty has almost 50% of all the trades that happen at the National Stock Exchange. This stock exchange has people working hard to make it equal for people to trade from abroad. The NSE is also different from other stock exchanges because it is listed as a tax paying company, while others are not.

What is Sensex and What's Nifty?

Sensex is an index indicator for BSE and all the big companies in BSE. Nifty is an index indicator for NSE and all the big companies in NSE. If Sensex increases, most likely the stocks of big companies in BSE have increased. If Sensex decreases, most likely the stocks of big companies in BSE have decreased. Nifty is the same way, only for NSE. There are more stock exchanges in India; these two are just the major ones. The other ones are not as well-known. The majority of stock trading is done through these two stock exchanges as well. Because these are the major stock exchanges in India, this makes Sensex and Nifty the major indexes in India.


Why invest in Indian shares?

There are so many things to invest in. You can invest in Stocks, Bonds, Equity, Currency, Commodities, Real Estate, and many others. If you look at the global recession in a positive way, it has given new opportunities. Gold has become more expensive that it has been in a long time. Real estate isn't extremely cheap yet. The equity rates are sold off. So if you were to invest in equity and have a 0% interest rate. In some parts of the world, this would make the best investment.

Why NRIs - Non Resident Indians should Invest in India? 

1.) India has a lot of savings; which is helping them in recessionary times. If the UK and the US would have had the savings like India, then they wouldn’t have had such a hard time this recession.

2.) India has a very large population of young people. The population in other countries will be aging and India's will just be made up of mainly young people. This will mean that the majority of the population will be able to speak English. English is the language that is used all over the world, and not even China has been doing as well in this aspect.

3.) India has low Exports and Imports and higher GDP. Some may think of this as a bad thing and some a good thing. Many think that this is just another reason why India is not affected so much by the recession.

4.) There are many car companies in the USA that are shutting down and going bankrupt because of recession. Some of the car companies in India are doing better than ever. So many people are buying cars during the recession. This is another way to show how unaffected India is.

What about the future of the Indian stock market?

Everyone keeps asking about this. Truth is, it is very risky, but one who has experience in the markets knows that the higher the risk usually means the higher the reward. When a stock looked nice to you, you will usually end up getting it. There are times when a stock that you buy will go down in value, but it usually will come back up in value too. When it is a bear market, this is when you get the most opportunities to buy.

Tips to Invest in the Indian Stock Market:

Don't let your emotions influence the way that you invest. Keep focus and make sure that you keep your loses down. A good trader needs to have complete control over his/her movements & must know how other markets move, viz: forex, commodities, futures, etc.. They need to know the exact time to buy and to sell a stock. Never get too unhappy about small loses. That is how it is supposed to be. It is always better to make sure your losses stay small. If you keep your losses small and your winning bigger, but not outrageous, then it is easier to keep your emotions away from your investing. When you trade only invest an amount of money that wouldn't bother you too much if you lost. If you use a really big amount then your emotions will get in the way and get in the way of the outcome. Overall, to have the best outcome, you should try your best to keep your emotions away from your work and invest easily. 

If you are interested in Indian share tips and free financial news, that you can help you then you must visit: NriInvestIndia.com

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How to make money from the Stock Market of India?

The Indian markets are a good opportunity to earn some extra money with investing as a main source of income or as something extra with your main job. You have to have the right knowledge and practice make insure that you make more money than you lose.  It is better to make sure you know what you are doing before you invest your money. In stead of learning later after you lose a lot of money. This is mainly for beginners that do not know much about investing or trading, but they do know a little about stocks.

1.) The first thing you need to do is start learning about the types of stocks and keep in mind the ones that would be good for you to invest in. Then, compare the stocks you chose with the stocks that others are choosing. Find out why people are choosing these stocks and decide if maybe the ones others picked would be a better idea for you.

2.) Next, you need to research and study. Study the stocks that you picked. Learn how the prices fluctuate. Learn just how high the price gets and how low it gets as well. Start reading articles on investing. Read about other peoples' views and stories. The more research and studying you do, the more prepared you will be for stock trading/investing. Doing all of this research will also give you a good idea about other stocks that you didn't know about before. You should start watching news and looking at charts to prepare yourself as well.  This will help you after a while, but don't jump into investing without knowing what you are doing for sure. Make sure you are ready.

3.) When you are certain that you are ready to invest, this may take a long time, depending on the type of learner you are. You should be sure to start when the market is in a good place. It is usually a good idea to begin when the market is slightly advancing. Don't invest when the market is swinging. When you buy stocks in India, make sure that they have a good trading volume. Also make sure that they have a higher EPS and a lower PE.  Look at the company news of the stock you are buying and make sure that they do not have some recent bad news that will make the stock's value fluctuate too much. The last thing to keep in mind when you buy stocks is to spread your money around and don't invest everything in just one or two stocks.

4.) Now that you have purchased the stocks you want, it is time to decide when to sell them. Stay up to date on the news concerning the companies that you invested in. If any bad or really good news comes up, you should pay very close attention to that stock. Do not sell the stock if the stock has very crowded trading volumes. Also do not sell the stock if nothing much is happening. If it is not falling fast or if it is trading straight, it's not a good idea to sell. You need to sell the stock if you start losing more that five percent or if you are winning more than seven percent and you need the money badly. Also, pay attention to the conditions of holding a stock. You need to sell if you go against any of these conditions.

5.) When you have made profit from investing. Try to be smart and do not invest all of your profits back into another stock. It is never a guarantee that the stock will do what you think it will. Most of all keep practicing. Never start thinking that you are too good to practice, study, and research.