India’s Equity Market
- October 14, 2021
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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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