History of 147 years Indian stock market

What is stock market

The stock market is a centralized platform or marketplace where individuals and institutions buy and sell stocks, which represent ownership in publicly traded companies. It's a critical component of the global financial system. Here's how it works:

Listed Companies: Companies seeking to raise capital can "go public" by offering shares of their company for sale to the public. These shares are traded on the stock market.
Buyers and Sellers: Investors, including individuals, institutional investors (like mutual funds and pension funds), and traders, buy and sell stocks through stock exchanges. These exchanges facilitate the transactions and set rules for trading.
Stock Exchanges: Stock markets can be physical locations or electronic platforms. Some well-known stock exchanges include the New York Stock Exchange (NYSE) and the Nasdaq in the United States, the London Stock Exchange (LSE) in the UK, and the Tokyo Stock Exchange (TSE) in Japan.
Price Determination: Stock prices are determined by the forces of supply and demand. If more people want to buy a stock, its price tends to go up, and vice versa. Various factors, such as a company's financial performance, economic conditions, and investor sentiment, influence stock prices.
Investment and Trading: Investors buy stocks for various reasons, such as long-term investment, earning dividends, or capital appreciation. Traders often buy and sell stocks more frequently to profit from short-term price fluctuations.
Market Indexes: Stock market indexes, like the S&P 500 or the Dow Jones Industrial Average, track the performance of a specific group of stocks. They provide a snapshot of the overall market's health and are often used as benchmarks for investors.

The stock market plays a crucial role in the economy by enabling companies to raise capital for growth and allowing investors to participate in their success. It also serves as a barometer for economic health and is closely watched by governments, businesses, and individuals worldwide.

History of indian stock market

The history of the Indian stock market dates back to the 19th century. Here's a brief overview of its evolution:

Early Beginnings (19th Century): The Bombay Stock Exchange (BSE) was established in 1875. Initially, it was an informal gathering of traders under a banyan tree in Mumbai. This marked the formal beginning of stock trading in India.
Regulation and Control (20th Century): In 1956, the Indian government recognized the need for regulating stock exchanges and passed the Securities Contracts Regulation Act. This act established regulatory bodies like the Securities and Exchange Board of India (SEBI) to oversee and regulate the securities markets.
Technology and Modernization (Late 20th Century): The introduction of electronic trading systems in the 1990s marked a significant turning point. The National Stock Exchange (NSE) was established in 1992, introducing electronic trading and making stock trading more efficient.
Liberalization and Economic Reforms (1990s): India's economic reforms in the early 1990s opened up the economy, leading to increased foreign investment and participation in the Indian stock market.
Globalization (21st Century): With the growth of the Indian economy and the emergence of India as a global economic player, the Indian stock market gained international prominence. It also saw a rise in the number of initial public offerings (IPOs) and foreign institutional investments.
Nifty 50 and Sensex: The Nifty 50 and BSE Sensex are the two most prominent indices representing the performance of the Indian stock market. They are closely watched by investors and analysts.Recent
Developments (21st Century): The Indian stock market has seen both bull and bear phases, influenced by domestic and global economic factors. Reforms, like the introduction of the Goods and Services Tax (GST) and measures to improve ease of doing business, have had an impact on the market.The history of the Indian stock market is marked by a transition from open-outcry trading to electronic trading, increased regulatory oversight, and a growing role in the global economy. It continues to be a vital component of India's financial infrastructure and a key barometer of its economic health.

Stock depends two type of analysis

1 fundamental analysis

2 Technical analysis

What is fundamental analysis

Fundamental analysis is a method used to evaluate the intrinsic value of a stock by examining various financial and economic factors related to the company. Here's an explanation of fundamental analysis in the stock market:

Financial Statements: Fundamental analysis starts with a company's financial statements. The key documents to study are the income statement, balance sheet, and cash flow statement. These provide detailed information about a company's financial health and performance.
Earnings and Revenue: Analysts look at a company's earnings (profits) and revenue (sales) over time. Consistent growth in these numbers can be a positive sign. Earnings per share (EPS) is a common metric that measures a company's profitability on a per-share basis.
Assets and Liabilities: The balance sheet reveals a company's assets (what it owns) and liabilities (what it owes). Key indicators include total assets, total liabilities, and shareholder equity. A healthy balance sheet typically has more assets than liabilities.
Cash Flow: Examining a company's cash flow statement helps assess its ability to generate cash from its operations. Positive cash flow is crucial for sustaining and growing a business.
Dividends: If you're looking for income, dividend-paying stocks are important. Fundamental analysis includes an evaluation of a company's dividend history and its ability to maintain or increase dividend payments.
Market Position: Understanding a company's market position, competition, and industry trends is essential. Factors like market share, competitive advantages (like patents or strong brands), and growth potential are considered.
Management and Leadership: The effectiveness and integrity of a company's management team play a critical role. Assessing their track record, experience, and decision-making is part of fundamental analysis.
Economic Indicators: Broader economic factors, such as interest rates, inflation, and GDP growth, can impact a company's performance. Analysts consider how these macroeconomic factors might affect the company.
Valuation: Analysts use various metrics to determine whether a stock is overvalued or undervalued. Common valuation metrics include the price-to-earnings (P/E) ratio, price-to-book (P/B) ratio, and price-to-sales (P/S) ratio.
Risk Assessment: Fundamental analysis also involves assessing risks associated with a company, industry, or the overall economy. These risks can impact a stock's performance.
Long-Term Perspective: Fundamental analysis is often used by investors with a long-term view. It aims to identify stocks with strong fundamentals that have the potential for sustained growth over time.
Qualitative Factors: Besides numbers, qualitative factors like brand reputation, intellectual property, regulatory environment, and corporate governance are considered in the analysis.

Fundamental analysis helps investors make informed decisions about buying, holding, or selling stocks based on the underlying financial health and prospects of the companies in which they're interested. It's a method that requires research, analysis, and a deep understanding of the factors that influence a company's value in the stock market.

Technical analysis

In technical analysis you analysis graph 📉📈 look at the graph and estimated this graph after upper direction ⬆️ or lower direction ⬇️ in this you choose one call 📈or put call mean company is in profit some time you enter call if you know company in loss after few some time you enter put 📉 in technical analysis you know about company check graph 5year 2year 3 year few days graph shows upper or lower these things you see and anylisis your graph and choose a 1 company to trade

Technical anylisis not more work investment it work only trading to read the graph 📉📈 better and trade to earn profits

Q2 Diffrence between investment and trading

Investment

In investment you invest your money for a long period of time

In investment it not a 1 day you earn profit

It take them for many years but it gives more returns

In investment benefits is if you are in loss after some days you are in profit it depend on company but know about that company where you invest your money 🤑💰