CHAPTER-2 Introduction to Indian Stock Market
SLIDE 1. What is a Stock Market
A stock market is an organized platform where shares of publicly listed companies are bought and sold. It allows investors to participate in a company’s growth while enabling companies to raise capital for expansion. The stock market acts as a bridge between businesses seeking funds and investors seeking returns.
SLIDE 2. India's Major Stock Exchanges
Bombay Stock Exchange (BSE) & National Stock Exchange (NSE) Established in 1875, the Bombay Stock Exchange is Asia’s oldest stock exchange. It benchmark index is SENSEX. Founded in 1992, the National Stock Exchange introduced electronic trading in India. Its benchmark index is NIFTY 50
SLIDE 3. Key Market Indices
NSE – NIFTY 50 | BSE – SENSEX | SECTORAL INDICES
SLIDE 4. Markets Types - Primary Market
The primary market is where companies issue shares for the first time through Initial Public Offerings
(IPOs). Funds raised go directly to the company to support growth and development.
SLIDE 5. Markets Types - Secondary Market
The secondary market allows investors to buy and sell existing shares among themselves. Prices
fluctuate based on demand, supply, and company performance.
SLIDE 6. Types of Market Participants
Market participants include retail investors, institutional investors, traders, and speculators. Each
group plays a distinct role in market liquidity and price discovery.
SLIDE 7. Market Segments and Instruments
The Indian stock market includes equity, derivatives, debt instruments, mutual funds, and ETFs.
Each segment serves different investment objectives and risk profiles.
SLIDE 8. Role of SEBI
The Securities and Exchange Board of India (SEBI) regulates the stock market to protect investors,
promote transparency, and ensure fair practices.
SLIDE 9. Role of Investors and Companies
Investors provide capital with the expectation of earning returns through price appreciation and
dividends. Companies use this capital to expand operations, invest in innovation, and reduce debt.
This creates a mutually beneficial ecosystem.
SLIDE 10. How to Start Investing
To begin investing, individuals must open a Demat and trading account, fund the account, research
companies, place orders, and regularly monitor investments.
SLIDE 11. Conclusion (Overview)
This section summarizes essential concepts
SLIDE 12. Questions & Answers
This section addresses common beginner questions related to stock market investing.