India’s Equity Market

Subject – Economy

Context – Indian equities on track to join top-5 market-cap club, displacing UK

Concept –

India’s equity market is on the cusp of overtaking that of the UK in value to join the world’s top-five club, at least by one measure.
The likely feat comes as record-low interest rates and a retail-investing boom propel stocks in the former British colony to record highs.
India’s market capitalisation has surged 37 per cent this year to $3.46 trillion, according to an index compiled by Bloomberg, representing the combined value of companies with a primary listing there.

What Is Equity Market?

Equity market is a place where stocks and shares of companies are traded.
The equities that are traded in an equity market are either over the counter or at stock exchanges.
Often called as stock market or share market, an equity market allows sellers and buyers to deal in equity or shares in the same platform.
In the Indian stock market, equities are available for trading at the National Stock Exchange (NSE) , the Bombay Stock Exchange (BSE) and the latest entrant, Metropolitan Stock Exchange of India (MSE). Shares of stock market listed companies are bought/sold.

Equity share trading is roughly in two forms – spot/cash market and futures market.
- The spot market or cash market is a public financial market in which stocks are traded for immediate delivery.
- The futures market is a place where the shares’ delivery is due at a later date.

Difference between Debt and Equity

Important Terms Related To Financial Market