New Age Stock Exchanges of India

Gone are those days when it was a cumbersome task to trade in shares in the stock exchanges of India. That was the time when physical share trading used to be carried out in the stock exchanges India.
Presently, there are two stock exchanges at national level and – stock exchanges at regional level. The two stock exchanges operational at national level are National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). Below is a brief introduction to the two most important stock exchanges in India.

National Stock Exchange (NSE) is an electronic exchange located in Mumbai. The exchange uses Nifty as its index which is the short for National fifty. The index represents 50 stocks chosen as per their market capitalization. This selection of stocks is subjected to change from time to time in accordance with the changes in market capitalization, and sometimes, changes in other relevant factors as well.

Bombay Stock Exchange is actually the oldest exchange. As can be easily made out from the name itself, BSE is situated in Mumbai, Maharashtra. This stock exchange’s index is represented by a basket of 30 stocks, where these 30 stocks are selected as per their market capitalization. The index is known as ‘Sensex’, short for Sensitive Index.
Although trading in stock exchange India has graduated from being done physically to being conducted online, it still needs a lot of understanding of the stock market. If someone puts his money into the market without knowing anything about the share markets, then he is taking a lot of risks unnecessarily which means that there are greater chances of him getting into losses.

Hence, it is important to have thorough knowledge of markets. And once you have that, you will be in a somewhat comfortable position to adopt certain trading strategies that might increase your probabilities of gaining profits by your investments.

Two of the most famous and extensively adopted strategies rampant in stock market India are that of short term investments and day trading strategies. For such strategies, you can make use of the following tips:

• Avoid taking high exposure in shares during your initial time, even when your broker provides excess exposure limit. While taking the exposure, do ensure that it is within your capacity.

• Try to receive tips from not just one broker but as many brokers as possible. This will help you in making better investment decisions.

• Make it a point to attend investor learning sessions conducted by most of the reputed brokerage companies.