Don’t miss the latest developments in business and finance.

image

Stock Market

About Stock Market

Facebook IconLinkedIN Icon

What is a Stock Market?

Basic explanation of stock market:

It is a place where regular activities of buying, selling, and issuance of shares of publicly-held companies take place. In the stock market, one can also trade in financial instruments such as derivatives, bonds, mutual funds, along with shares of a listed company.
 
A stock exchange is the meeting place for buyers and sellers for trade. In India, the prime stock exchanges are the National Stock Exchange and the Bombay Stock Exchange.

Types of markets:

One can trade in either one of the two market segments: the primary market and secondary market.
 
Primary market:
 
The primary market is where a company first gets registered to raise money and issues a certain number of shares or bonds. It's in this market that firms float new stocks and bonds to the public for the first time. When a company decides to list its shares for the first time this is known as an initial public offer (IPO).
 
Another way for a company can raise capital in the primary market is through rights offering or issues. A rights offering (issue) allows companies to raise additional equity through the primary market after having securities in the secondary market.
 
Secondary market:
 
After stocks or securities of a company have been sold in the primary market, they are then traded in the secondary market. Investors trade previously issued securities without the companies' involvement. In the secondary market, the investor buys shares from another investor at the prevailing market price or whatever price both the buyer and seller agree upon.
 
In India, primary and secondary markets are governed by the Security and Exchange Board of India (Sebi).
 

What is traded in the stock market?

In the stock market, various kinds of financial instruments are traded which are shares, bonds, mutual funds, derivatives.
 
A share is a single unit of ownership in a company or financial asset.
 
Bonds are a way in which a company opts to borrow funds from a variety of investors, which is also paid off through timely interest payments.
 
Mutual funds are investments that allow one to indirectly invest in the share market.
 
Derivatives are instruments that allow one to trade at a price that has been fixed by the person trading.  It means that one enters an agreement where they choose to either sell or buy a share or any other instrument at a certain fixed price.
 

What is a bull market?

A bull market means the share market is rising and investor sentiment is confident, further encouraging other investors to buy. Generally when the sharemarket is ‘bullish’, the economy is strong and unemployment is low.
 

What is a bear market?

Essentially a bear market is the opposite of a bull market. That means if the market falls by 20% or more from the 52 week high, it has become a bear market. A bear market is generally marked by investor pessimism which can cause prices to continue falling, adding to further negative sentiment.
 

What is a stock market correction?

Sometimes a steep fall in market prices can be a market correction rather than a bear market. Generally speaking, a fall of 10-20% is considered a market correction, with a fall beneath 20% considered a bear market.
 
However, whereas a bear market is usually a sign of negative investor sentiment, a market correction is often a temporary price reversal before the market continues moving upwards.
 

Latest Updates on Stock Market

ITC stock surged over 88 per cent after the company's board approved the hotel demerger in August 2023; at present levels, the stock is down 11 per cent from its peak. Key levels to watch out now.

Updated On: 18 Dec 2024 | 9:49 AM IST

As many as 30 mid, smallcap stocks more-than-doubled investors wealth in 2024 as MidCap and SmallCap indices outperformed benchmark Nifty 50 with over 30 per cent gain. Here are stock picks for 2025.

Updated On: 17 Dec 2024 | 11:56 AM IST

Markets Crash Today Highlights: The day ended in favour of bears as all the constituent stocks of Nifty50, barring Cipla and ITC, ended in the red

Updated On: 17 Dec 2024 | 4:08 PM IST

While mid- and smallcap funds have outperformed, experts recommend maintaining a substantial allocation to largecap funds

Updated On: 17 Dec 2024 | 12:13 AM IST

Markets Today: Monday ended broadly in favour of the bears as 36 out of 50 constituent stocks of Nifty50 ended in the red, dragged down by Titan, TCS, Hindalco, Adani Ports, and BPCL

Updated On: 16 Dec 2024 | 3:55 PM IST

Also, global trends will also be tracked by investors for further cues, they added

Updated On: 15 Dec 2024 | 10:13 AM IST

Markets Highlights: Friday ended in favour of the bulls, as 41 out of 50 constituent stocks ended in the green, led by Bharti Airtel, ITC, Kotak Mahindra Bank, Hindustan Unilever, and UltraTech Cement

Updated On: 13 Dec 2024 | 3:53 PM IST

Technical charts show that these four stocks have given a breakout on the daily scale on closing above the super trend line indicator.

Updated On: 12 Dec 2024 | 1:25 PM IST

Market Close: Sectoral indices largely finished in the green, with Banks and Media being notable exceptions. Top performers among sectoral indices included Nifty Auto, FMCG, IT and Consumer Durables

Updated On: 11 Dec 2024 | 4:00 PM IST

Broader indices have outperformed the Sensex and Nifty amid the recent market recovery, rallying up to 12% from November lows. These 5 mid-, small-cap stocks could swing up to 19% from present levels.

Updated On: 10 Dec 2024 | 12:04 PM IST

Authorities will also step up "unconventional" counter-cyclical adjustments, focusing on expanding domestic demand and boosting consumption

Updated On: 10 Dec 2024 | 9:18 AM IST

Cues from F&O market for December 10: Foreign investors are seen building long positions in Nifty futures thus far this month, with open interest rising by 27% in the last six days.

Updated On: 10 Dec 2024 | 9:20 AM IST

Markets Highlights: Shriram Finance, Bajaj Finserv, Wipro, HCL Tech, and Infosys were among the 23 Nifty50 constituent stocks that ended in the green, with gains of up to 2.48 per cent

Updated On: 10 Dec 2024 | 4:01 PM IST

Markets Highlights: Benchmark Indian equity indices BSE Sensex, and Nifty 50 settled in the negative territory on Monday

Updated On: 09 Dec 2024 | 3:59 PM IST

Besides, the rupee-dollar trend and movement of global oil benchmark Brent crude will also be crucial in dictating terms in the market, experts added

Updated On: 08 Dec 2024 | 10:49 AM IST

The surge in IPO activity comes after a slowdown triggered by poor listings, weak demand, foreign portfolio investor (FPI) outflows, and earnings disappointments

Updated On: 06 Dec 2024 | 11:24 PM IST

South Korean parent to sell 15% stake

Updated On: 06 Dec 2024 | 11:20 PM IST

November's decline in inflows in the FAR securities was influenced by the rise in US yields, the dollar's strengthening, and the Trump trade, which shifted investments to US equities

Updated On: 06 Dec 2024 | 4:11 PM IST

Markets Highlights: Broader markets outperformed the benchmarks indices on Friday after the RBI left key rates unchanged and announced a 50 bps cut in CRR, while lowering its GDP forecast

Updated On: 06 Dec 2024 | 4:11 PM IST

Pre-market update: RBI policy decision likely to set the equity market trend on Friday; Strong FIIs buying a positive; Ganesh Infraworld likely to witness a bumper listing on the NSE SME platform.

Updated On: 06 Dec 2024 | 7:30 AM IST