2/25/2024 0 Comments Guide to indian stock marketIndex funds are mutual funds, or an ETF that tracks the performance of an index. Index funds are considered an easy and convenient way to gain exposure to stock market indices. How to buy shares in India? Some of the popular Indian brokers are discount brokerages such as Zerodha and Upstox, and private bank subsidiaries such as HDFC Securities and ICICI Direct.įoreign investors can also invest in stocks in the Indian stock market provided that their brokerage has listed Indian equities on their platform.įor example, Indian companies such as Infosys ( INFY), ICICI Bank ( IBN), HDFC Bank ( HDB), Wipro (WIPRO) and Tata Motors (TTM)) are listed on the New York Stock Exchange ( NYSE) via their American depositary receipts ( ADRs) Index funds Indian investors can buy stocks listed on the NSE and BSE directly through their online brokerage accounts. Retail investors can gain exposure to the Indian stock market today via stocks directly or by buying index funds via exchange traded funds ( ETFs) or mutual funds. For October 2022, FII net flows into the Indian stock market stood at positive $0.4bn in the first six days of the month. Since then the NSE Nifty 50 index has gained about 14.5%, as of 18 October 2022, helped by the return of foreign institutional investors (FII) to the Indian share market in July and August following nine straight months of FII outflows.ĭata from investment firm Jefferies showed FII turned net sellers in September 2022. The index’s 52-week low stands at 15,183 points, hit in June 2022. The index was trading above the 17,400 points on 18 October 2022, down over 6% from its all-time high. The Nifty 50 index’s all-time high stands at 18,604 points, hit on 19 October 2021 following a rally that saw the index gain nearly 50% from a multi-year low of 7,511 points reached in March 2020. In comparison, the US equity benchmark S&P 500 ( US500) fell over 20% YTD, the UK blue-chip index FTSE 100 (UK100) has slipped about 6% YTD and Australia’s S&P/ASX 200 ( AU200) index has dropped over 10% YTD. Oil-to-telecom conglomerate Reliance Industries (RIL), and lenders HDFC Bank ( HDB) and ICICI Bank ( IBN) were the top three index constituents on the NSE Nifty 50 and the S&P BSE Sensex indices. Most public companies in India are listed on the NSE as well as the BSE. The index covers about 40% of total market capitalisation on the BSE. The S&P BSE Sensex is a blue-chip index that tracks the performance of 30 largest companies listed on the Bombay Stock Exchange ( BSE). Information technology and oil, gas & consumable fuels made up the top three sectors with weights of 13.8% and 12.5%, respectively. The index constituted over 60% of the free float market capitalisation of the stocks listed on India’s National Stock Exchange ( NSE).Īs of end-September 2022, financial services was the biggest sector on the NSE Nifty 50 index with an index weight of 36.8%. The NSE Nifty 50 index tracks the performance of the 50 largest companies listed in India. Let’s begin with the two equity benchmark indices, the NSE Nifty 50 (INDIA50) and the S&P BSE Sensex. Learning about the basics of the Indian stock market could be a great way to start your investment journey in India. Here we take a look at how to invest in stock markets in India and various tools to get exposure to the Indian stock market. In 2022, India leapfrogged the UK to emerge as the world’s fifth-largest economy. India’s stock markets have outperformed several developed nations in 2022 on expectations that the Asian nation could remain shielded from recessions in the US and Europe.įoreign institutional investors have maintained their exposure to Indian equities on the hopes of economic growth in one of the fastest developing nations. NSE Nifty 50 offers gateway to sub-continent’s biggest companies
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