Factors Behind the Recent Boom in the Indian Stock Market

 Factors Behind the Recent Boom in the Indian Stock Market

The Indian stock market has seen significant growth in the past few years, with the two major stock exchanges in the country, the BSE and NSE, consistently setting new record highs. And with the availability of the share market online, many people have access to trade from their devices. One major factor driving the growth of the Indian stock market has been the country’s strong economic performance. This economic growth has attracted investors to the Indian stock market as they see opportunities to start investment in our market.\Traders use multiple tools to conduct research on the market and to trade in the market. Research tools such as the NSE website, screener, etc. are used to predict the market and do trade accordingly. Several other factors have contributed to the growth of the Indian stock market in recent years:

  • Economic growth: India’s economy has been growing steadily, with a gross domestic product (GDP) that is now the fifth largest in the world in purchasing power parity. 
  • Government reforms: The Indian government has implemented various reforms and initiatives to improve the business environment and promote foreign investment, such as the Make in India campaign, which aims to encourage domestic and foreign companies to manufacture in India.
  • Retail participation: There has been increased retail participation in the Indian stock market, with more individual investors entering the market. This has been facilitated by the availability of online trading platforms and the widespread use of mobile devices, which make it easier for people to access and invest in the stock market.
  • Positive market sentiment: Investors have expressed confidence in the market and economy due to positive market sentiment. The traders utilize the breakouts of the market to earn profit in the market. These have helped drive demand for stocks and contribute to the market’s overall growth.
  • Foreign investment: The Indian stock market has also seen an influx of foreign investment as foreign investors see opportunities for returns in the growing Indian economy.
  • Shark investors: It is a term that is sometimes used to refer to investors who are known for being aggressive and taking high risks in pursuit of large profits.

Overall, these factors have contributed to the growth of the Indian stock market in recent years and have helped to create a positive outlook for the market going forward.

The availability of online trading platforms and the increased use of mobile devices have made it easier to invest in stocks.

Before the widespread use of mobile devices for stock trading, trading in the stock market was done primarily through brokers or financial institutions. Individual investors would typically place orders for buying or selling stocks through a brokerage firm or financial institution, which would then execute the trade on their behalf.

Traders could place orders over the phone or in person at a brokerage office or use a computer to access their brokerage account and place orders online. However, online trading was less prevalent than today, and many traders still preferred to place orders through a broker or financial institution.

In addition to individual investors, institutional investors such as mutual funds and hedge funds would also place orders for large quantities of stocks through brokerage firms or financial institutions. These firms would have teams of traders who would monitor the market and execute trades on behalf of their clients.

The past few years have seen the Indian stock market achieve strong growth, driven by strong economic performance, government reforms, and increased retail participation. While there may be ups and downs in the market in the future, the long-term outlook for the Indian stock market remains positive.

 

Paul watson