Stock market trading in India is popular for its potential of offering monetary benefits to the investors. It gives them the chance to grow, create wealth and make an additional source of income. Many individuals invest in different sectors that also leverages the growth of economy as well as companies selling their shares.
Stock market trading in India also involves risks and challenges. It is not always a cakewalk for investors to trade and earn huge profits. Investors or brokers who have expertise in risk management can take great advantage of earning more money from their shares.
Being a fully-automated platform, the share market in India offers a myriad of products for trade at a competitive and professional level. Additionally, the role of Securities and Exchange Board of India (SEBI) to regulate intermediaries, mechanism and settlements makes it fair to trade ethically in the market.
Reliability and safety in transactions
Stock market trading in India is extremely safe and secure as SEBI (Securities Exchange Board of India) keeps a close eye on the activities to protect the interest of every participant. It is a regulator that creates a perfect balance in the day to day activities to curtail unethical trading practices. Its strict regulations ensure that investors do not become the victim of unhealthy practices. Moreover, it is known for acting as a mediator in the market to make sure every transaction is safe and takes place in a smooth manner. To safeguard stock trading in India, it monitors intermediaries, brokers, NBFCs and all those who are directly involved in everyday trading activities.
Liquidity in stock market
Stock market trading in India is characterised for its high liquidity. The degree to which shares can quickly be converted into cash is high. It allows the buyers and sellers to transact at stable and transparent prices. It is crucial for traders who are into Intraday trading, especially when the time period is short. In order to hold a strong position, it is important to analyse the stocks first and identify the ones with high liquidity to reduce the impact of potential risks involved.
Barometer of Economy
Stock market in India is considered as a reliable barometer of economy. It represents the trends and situation of general economy of the country. If any major change occurs in the country, it is directly reflected in the prices of the shares that clearly showcases the health of the economy. It also has a strong impact on the GDP of the country. For instance, if the share prices are rising that means the companies and investors have potential to spend more. This directly reflects the condition of their wealth that results in higher GDP. On the other hand, if the share prices are falling, the companies and investors’ potential to spend will decrease which would automatically lower down the GDP.
With attractive opportunities, the scope of Stock Market in India is immensely huge. Such opportunities make individuals more confident to make a thoughtful investment rather than purchasing unproductive assets.