Basic introduction - Stock Market India - BSE and NSE

Lots of people daily entering into stock market, they are getting fascinating about the market. This article for those who wants to enter into share market but don't know how it works. Lets start with basic understanding:

SENSEX: Sensitive Index (SENSEX) is the name given to stock market. India has mainly two stock exchange BSE (Bombay Stock Exchange) and NSE (National Stock Exchange).

How it works?

BSE Index consists of 30 shares and NSE Index comprises of 50 shares. Every share has its different weightage according to its market capitalization. As the index shares moves up and down BSE and NSE start moving accordingly.

In both NSE and BSE, Reliance Industries is having most weightage.

How shares prices fluctuate?

A share price goes up or down, depends on investor's interest. There will be terms buyer and seller, for understanding lets have an example of a share which is trading at 100 rs.
A buyer put a bid of 99 rs and seller wants to sell it at 101 rs and accordingly he put the bid. If any other person who is interesting in trading come and purchase the stock at 101 rs then suddenly stock price will change to 101 rs. Same happens in case of vice versa.


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