10 Interesting Facts About the Indian Stock Market | Profile Traders (2024)

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.

10 Interesting Facts About the Indian Stock Market | Profile Traders (1)

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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.

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!

10 Interesting Facts About the Indian Stock Market | Profile Traders (2024)

FAQs

Who is India's top stock trader? ›

Top 10 Traders in India
PositionTop Traders in India
1Premji and Associates
2Radhakrishnan Damani
3Rakesh Jhunjhunwala
4Raamdeo Agrawal
6 more rows
Feb 16, 2024

Who were the traders of India? ›

Top 10 Traders In India 2024:-
RankTrader Name
1Premji and Associates
2Radhakrishnan Damani
3Rakesh Jhunjhunwala
4Raamdeo Agrawal
6 more rows
2 days ago

What are 5 facts about the stock market? ›

Without further ado, here are 13 awesome stock market facts!
  • The Stock Market is more than 400 years old! ...
  • There are more than 60 stock exchanges in the world! ...
  • The stock market is 70% likely to go up on any year. ...
  • October is the most volatile month. ...
  • September is the worst month.
Mar 7, 2024

Why is Indian stock market important? ›

The Indian stock market is at the top in the world map. It has witnessed growth like never before attracting investors from across the world to invest in Indian stocks. As a fast developing economy, the market is significantly pulling the crowd.

Why is Indian stock market strong? ›

As per the Indian stock market observers, the Indian equity market is rising because of various reasons, which include US Fed rate cut buzz, ample liquidity in the market, strong global market sentiments, strong Q4 results 2024, and expected trend reversal in the Chinese economy.

How many stock traders are there in India? ›

Going by NSE data, Groww onboarded 6.63 Mn active investors by September end, followed by Zerodha with 6.48 Mn users, while the total number of active traders in India stood at 32.56 Mn at the time.

How many traders are there in India? ›

- The total number of unique individual traders in the equity F&O segment increased significantly from 7.1 lakhs in FY19 to 45.2 lakhs in FY22, a growth of over 500%. - Among these, 88% were active traders who traded more than 5 times a year, highlighting the growth in active participation.

Who is the youngest trader in India? ›

Onkar Hase, India's Youngest Stock Market Expert and His Success as an Entrepreneur. At the age of 18, Onkar Hase, a 22-year-old resident of Shriampur, Ahmednagar, was recognized as India's Youngest Stock Market Expert National Record.

Who is the trader king of India? ›

Rakesh Radheyshyam Jhunjhunwala (5 July 1960 – 14 August 2022) was an Indian billionaire investor, stock trader, and Chartered Accountant. He began investing in 1985 with a capital of ₹5,000, with his first major profit in 1986.

How much money do traders make in India? ›

Average starting Salary for Trader in India is around ₹0.8 Lakh per year (₹6.7k per month). No prior experience is required to be a Trader. What is the highest salary for a Trader in India? Highest salary that a Trader can earn is ₹29.5 Lakhs per year (₹2.5L per month).

Who is the world's number one trader? ›

George Soros

He is one of the most popular and famous traders worldwide. In England, Soros worked as a waiter or railway porter before he graduated from the London School of Economics. This finally led him to the banking world when he became a merchant banker at Singer and Friedlander.

Did you know facts about trading? ›

Over Confidence – What Traders Think About Themselves
  • Trading experience eliminates the reluctance to realize losses. ...
  • The most senior traders are no less overconfident than their more junior colleagues. ...
  • Overconfidence among foreign exchange dealers could affect equilibrium exchange rates.

How does the stock market work in India? ›

This buying and selling of stocks listed on the exchanges are done by stockbrokers /brokerage firms that act as the middleman between investors and the stock exchange. Your broker passes on your buy order for shares to the stock exchange. The stock exchange searches for a sell order for the same share.

What is the 5 rule in the stock market? ›

This sort of five percent rule is a yardstick to help investors with diversification and risk management. Using this strategy, no more than 1/20th of an investor's portfolio would be tied to any single security. This protects against material losses should that single company perform poorly or become insolvent.

What is the history of stock market in India? ›

It started with a group of brokers finding a location in Mumbai's Horniman Circle. 1874: As more brokers jumped onto the bandwagon in downtown Mumbai, Dalal Street was born. Today, Dalal Street has become a metonym for the entire Indian financial sector, much like Wall Street is in the US.

What is the history of stock trading in India? ›

The history of the share market of India dates back to 1875. The name of the first share trading association in India was “Native Share and Stock Broker's Association” which later came to be known as Bombay Stock Exchange (BSE). This association began with 318 members.

What are the basics of stock market in India? ›

Stock Market Basics
  • All companies need money to run their business. ...
  • Understanding this is the first step towards understanding stock market basics. ...
  • Stocks are simply an investment method to build wealth. ...
  • Stock investment is a way to invest in some of the most successful companies.

How big is Indian stock market? ›

Equity raise through IPOs in FY25 could exceed Rs 1 lakh crore. India's market cap is currently the fifth largest globally ($4.5 trillion) and is likely to hit $10 trillion by 2030, according to a report titled 'Recap 2024.

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