Small Comment on Indian Stock and Equity Market

With over 25 million investors, India has the 3rd largest investor base in the world after Japan and US. Over 7500 companies are rank on the Indian stock exchanges (more than the number of companies listed in developed markets of Japan, UK, Germany, France, Australia, Canada and also Hong Kong.). The Indian capital market is significant in terms of the degree of development, volume of trading, limpidity and its terrible development potential. India’s market capitalization was the highest among the emerging markets. The Bombay Stock Exchange (BSE), which, as on July 31, 1997, was US$ 175 billion has grown by 37.5% percent every twelve months and was over US$ 834 billion as of January, 2007. Bombay Stock Exchanges (BSE), one of the oldest in the world, register for the largest no. of listed companies transacting their shares on a nationwide online trading and investment system. The two big exchanges in India namely the Bombay Stock Exchange (BSE) and  National Stock Exchange (NSE) the ranked no. 3 & 5 in the global world, ranking by the number of day to day transactions done on the stock exchange.

The complete gross sales of Indian Financial Markets crossed US$ 2256 billion in 2006 – An increase of 82% from US $ 1237 billion in 2004 in a short span of two years only. Turnover in the Spot and Derivatives segment both in NSE & BSE was higher by 45% into 2006 as compared to 2005. With daily average volume of US $ 9.4 billion, the Sensex has posted excellent returns in the recent years. The market cap of the sensex as on April 11th, 2008 was Rs 2,237,540 crore with a P/E of 20.23x.

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