Indices from India the Nifty index reaches a record high of 19500, and the Sensex reached its all-time high of 66000. As Indian equities benchmarks continued their upward trend, supported by developments in the world markets and foreign capital inflows. Markets are the key economic indicators. As a result, the stock market reflects the growing strength of the Indian economy.
The present scenario of the stock market symbolises the beginning of a new era, but the history of the Indian stock market is equally interesting.
History of the Indian Stock Market:
Indian Stock Market is one of the oldest Stock Market in Asia. East India Company used to transact Loan Securities by the end of 18th Century. In the 1830s, trading on corporate stocks and shares in Bank and Cotton presses took place in Bombay. At the start, there was a paper trade system where brokers kept track of the price and quantity. The top matches were chosen by hand. This used to be how the market flooded with quotes and sound over the assembly.
- The first stock exchange in India was established in 1875 in Bombay, Maharashtra, where the native share and stock broker’s association was formed to trade securities.
- By 1992, the BSE Sensex rallied from 1000 to 4000, registering a rise of 300%. This was the time of the big bull- Mr Harshad Mehta. His voluminous buying led the market to touch highs and highs. After the scam was known, the SEBI (Securities Board of India) was introduced to regulate the unwanted volatility in the stock market.
- In 2002 and 2003, the BSE Sensex shifted to a free-float market.
- After the market fall of 2008, the IPO index was launched. The market time changed from 9:00 AM to 3:30 PM.
- Post COVID-19 2020, the market flooded with loads of investment, and new DEMAT accounts were opened. The confidence of retail investors shifted from safe harbours like fixed deposits to stock market investments. In June 2021, a milestone of 7 crores of registered users was recorded.
Basically, the market is its lifetime high but because I had a 20 year investing horizon, I believed the market was at its all-time low.
Let’s talk about some factor that contribute in Indian securities market
· Start-up (Ease of doing business)
In recent years, India has been a hotspot of Start-up activity, with a boom in new companies across a wide range of industries. As these companies grow, they are gradually playing a significant role in the Indian economy. But what effect do they have on the stock market in India?
First of all, start-ups have a great chance of having a big effect on the Indian economy. They can support the growth, innovation, and creation of jobs across numerous industries. This can lead to more consumers spending, which can benefit the stock market. Stock prices may rise when more money enters the market, which can benefit investors. Also, Start-up can have an impact on the stock market via Initial Public Offerings (IPOs). When a Start-up goes public, it makes its shares available to the general public for the first time. This provides an opportunity for investors to purchase shares in the company, which may result in increased demand for the stock. As demand for the stock grows, its price may rise, which can impact the overall market.
· Young India
A nation's worth is determined by its people, not by the wealth or resources it possesses. A nation may be wealthy, but what's more important than the actual wealth is the collective intellect and intelligence of the people who contribute towards earning that wealth. The youth of a country determine how it will develop in the next years; they are the nation's future, and both their acts and inactivity affect the state of the country. Three years into the new decade, India’s population is one of the youngest in the world. As of 2021, the country’s median age was 27.6 years, a decade younger than both China and the USA.
· Infrastructure
For a country's industries and overall economy to grow, its infrastructure must be developed. The sector of infrastructure serves as the primary driver of the Indian economy. The increased spending in this sector multiplies overall economic growth, since it involves manufacturing and industrial expansion. A higher standard of living result, which raises aggregate demand.
· Current account deficit
Current account deficit (CAD) has an impact on the economy, stock markets, and investments. India's current account deficit (CAD), which is the difference between the inflow and outflow of foreign exchange, has narrowed to $18.2 billion or 2.2 per cent of GDP in the October to December quarter (Q3FY23) from 4.4 per cent of the GDP in the quarter ending September, according to the data released by the Reserve Bank of India (RBI).CAD, a key indicator of the external sector, had widened to 3.3 per cent of GDP in first half of 2022-23 from 0.2 per cent in the comparable period of 2021-22 on the back of a sharp increase in the merchandise trade deficit. India can take a number of actions to reduce its current account deficit (CAD).By supporting domestic manufacturing of commodities that are now imported; the country can encourage import substitution. India can improve the productivity and competitiveness of the domestic economy by investing in infrastructure, technology, and education, start-ups. These actions could boost exports and decrease the trade deficit, which would help to balance India's current account deficit.
The bottom line:
In above discussion, we conclude that India’s current condition is much better than other countries. And as per our vision this is the right time to invest in Indian securities market, because if market 100 shifts to market 65000 so it will also happen that market is above 600000 after 20year. And on the basis of above mention facts, we surely assume that after 20 year this factor will rock.
Leave a Reply
Your email address will not be published. Required fields are marked *
).png)
