In Stock Markets around the world as well as in Indian stock exchange, Profit and loss are the two inseparable features. Dealing in Share price and market index are for those who are ready to invest their time and money whole heartedly into it. If you study the stock exchange well before your investments in stock market and shares, losses can be easily minimized and profits can be duly increased. The rule of thumb in Indian stock markets is that one needs to know the valuations or share price at which to buy a stock and when to sell a stock. One should never keep holding to a stock just because he loves it.
Though many stock markets exist in India, BSE and the National Stock Exchange (NSE) of India account for most of the trading in shares in India.
The Bombay Stock Exchange Limited (popularly called The Bombay Stock Exchange, or BSE) is the oldest stock exchange in Asia. It is also the biggest stock exchange in the world in terms of listed companies with 4700 listed companies as of August 2007. It is located at Dalal Street, Mumbai, India. On 31 December 2007, the equity market capitalization of the companies listed on the BSE was US$ 1.79 trillion, making it the largest stock market in South Asia and the tenth largest in the world.
The Bombay Stock Exchange was established in 1875. Around 6,000 Indian companies list on the stock exchange, and it has a significant trading volume. The BSE SENSEX (SENSitive indEX), also called the "BSE 30", is a widely used market index in India and Asia.
The National Stock Exchange of India Limited or S&P CNX NIFTY (NSE), is a Mumbai-based Indian stock exchange. It is the largest stock market in India in terms of daily turnover and number of trades, for both equities and derivative trading. The NSE's key index is the S&P CNX Nifty, known as the Nifty, an index of fifty major stocks weighted by market capitalisation.
NSE is mutually-owned by a set of leading financial institutions, banks, insurance companies and other financial intermediaries in India but its ownership and management operate as separate entities. As of 2006, the NSE VSAT terminals, 2799 in total, cover more than 1500 cities across India. In October 2007, the equity market capitalization of the companies listed on the NSE was US$ 1.46 trillion, making it the second largest stock exchange in South Asia. NSE is the third largest Stock Exchange in the world in terms of the number of trades in equities. It is the second fastest growing stock exchange in the world with a recorded growth of 16.6%.
NSE also set up as index services firm known as India Index Services & Products Limited (IISL) and has launched several stock indices