What Is the Stock Market?
The stock market is a marketplace where shares of publicly listed companies are bought and sold. Learn how it works, what moves prices, and how to get started as an Indian investor.
The Stock Market in One Line
The stock market is a marketplace where shares of publicly listed companies are bought and sold between investors every trading day.
How It Works
When a company wants to raise money from the public, it offers shares through an Initial Public Offering (IPO). Once listed, those shares trade daily on a stock exchange between buyers and sellers — just like an auction, but automated and continuous.
In India, the two major stock exchanges are the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
Why Do Stock Prices Move?
Stock prices change because of supply and demand. If more people want to buy a stock than sell it, the price rises. If more want to sell, it falls. What drives those decisions?
- Company earnings and quarterly results
- Economic data and RBI interest rate decisions
- Global events and foreign investor flows (FII/DII activity)
- Market sentiment, news, and analyst upgrades
Indices: The Market's Report Card
The Nifty 50 and Sensex are indices — they track the combined performance of the top companies on the NSE and BSE respectively. When you hear "the market is up today," it usually means one of these indices rose.
Who Can Invest?
Any Indian citizen can open a Demat and trading account with a SEBI-registered broker and start investing in stocks. You do not need a large amount — some platforms allow investing with as little as ₹100.