Updated: May 16
In the year 2020-21, over 36 cases have been penalized under insider trading. Besides, there are fears that COVID 19 and lack of liquidity in the system can cause further damage as per a money control report.
Even if a person doesn't do trading for a living or have any financial degree, he will always have strong emotions towards the capital market.
It can be complete love towards the market or intense hatred towards the capital market.
Most people participate related to stock market debates (either for or against) unknowingly. So, let us explore some of the exciting aspects related to the stock market.
Below are the 10 fascinating facts about the Indian share market:
Fact #1 Bombay Stock Exchange (oldest exchange in Asia)
Mr. Premchand Roychand founded the Bombay Stock Exchange (BSE) in Dalal Street in 1854, and BSE is the oldest exchange in Asia.
BSE has over 5000 companies, and hence it is the biggest stock exchange in the world in terms of the total number of listed companies.
Fact #2 Security and Exchange Board of India (SEBI)
The National Stock Exchange (NSE) was established only in 1993. Harshad Mehta's scam in 1992 led to the rise of the Security and Exchange Board of India (SEBI), and the Government of India (GOI) give additional statutory power to SEBI in 1995.
Fact #3 Total Exchanges in India
People know only NSE and BSE in India. But we have 9 trading exchanges in India (at the time of writing this post). They are below
Bombay Stock Exchange (BSE)
Calcutta Stock Exchange
India International Exchange (India INX)
Indian Commodity Exchange
Metropolitan Stock Exchange
Multi Commodity Exchange of India
National Commodity and Derivatives Exchange
National Stock Exchange (NSE)
NSE IFSC Ltd.
Fact #4 Bull Market and Bear Market
The bull market and bear market are the most commonly used terms in the stock market.
When the stock price is increasing, it is called the bull market. It is also believed that the bull has its horns pointed towards the sky, which symbolizes upward movement. Thus, the bull market is related to the climbing market.
In contrast, when the stock price has been declining, it is called the bear market. It is believed that the bear, when confronting the bull, has its palm towards the ground, and hence bear market resembles a falling market.
Fact #5 Indian Companies and Karachi Stock Exchange (KSE)
Indian companies such as Tata Consultancy Services (TCS), Reliance Industries Ltd (RIL), HDFC are the companies that have market capitalization higher than the combined market capitalization of the Karachi Stock Exchange (KSE).
Fact #6 SGX Nifty
Millions of people search 'SGX Nifty Live' on Google every weekday between 8.30 AM to 9.15 AM IST.
It indicates SGX Nifty plays a vital role in the Indian stock market and many traders look at SGX Nifty Futures to gauge the open levels in Nifty (NSE) and to manage their open action trades.
Fact #7 Rule of 72
Rule of 72 - Whenever a beginner looks to invest in the share market, the first question he gets in his mind is the time required to double the investment.
The time needed to double the capital is calculated using the simple rule of 72, which requires a fixed interest rate.
One can divide the rate of return by 72 to get an approximate value of return on investment.
Let us understand with an example, suppose is a person is investing Rs 3,00,000 at the rate of 8%.
So 72/8 = 9, i.e., it will take 9 years for him to double the capital.
Fact #8 Investors/Traders in India
Only 2.6% of the overall Indian population invest in the stock market. As compared to any major city in India, Mumbai has the highest number of Demat accounts.
Fact #9 Most Expensive Share in India
The costliest share in the Indian stock market is MRF. It costs Rs 78,350 to buy 1 share of the MRF (as of 23-Apr-2021), and the expensive share in the world is Berkshire Hathaway 4,09,169 USD (as of 23-Apr-2021).
Fact #10 Richest Traders/Investors in India
Ramesh Damani, Rakesh Jhunjhunwala, Radhakishan Damani, Raamdeo Agrawal, and Porinju Veliyath are the major traders/investors in India.
Are you interested to learn the systematic way of trading?
Do you want to know the different types of trading and a strategy to pick the good stocks early?
Then, register for the 'Beginners Guide to Indian Markets' course and it is completely FREE!