OVERVIEW OF EQUITY MARKETS
Indian Equity Markets are a vital part of the Indian financial system. These markets have undergone tremendous change post liberalization era. Currently, Indian financial markets are considered as one of the hottest destinations for investments by not only us, but also by foreign institutional investors and foreign nationals.
Established in 1875, the Bombay Stock Exchange (BSE) is Asia’s first Stock Exchange and one the largest in the world. The formation of the BSE marked the beginning of the Indian Capital Market scenario. Post liberalization era in the 90s, National Stock Exchange (NSE) was founded in 1992 which provided the first screen-based fully automated interface in India.
So, what is ‘SENSEX’?
Sensex, also referred to as S&P BSE Index, was formed in 1986. It comprises of 30 stocks, which more or less represent the market in terms of industry sectors and overall growth. Such stocks are selected basis their liquidity and FFMC (Free-float market capitalization) in such a way, so as to determine the overall market movement.
Simply put, Sensex is an index which shows whether the market is showing an upward trend or a downward fall. Although it may be possible that in spite of a dip in the market, there will be sectors which shall outperform this market trend.
That being said, the markets are volatile and their movement is dependent on numerous factors. Thus, the best way to invest into such markets is through an Independent Financial Advisor, who shall guide you at every step and help you attain your financial goals.
At RichVik, we strive to give out the best advice including, but not limited to direct equity investments, mutual funds & life insurance.