5. What is Stock Market? How to Invest in Stock Market?

Indian Stock Exchange Market

Practically, there is no need to track company’s shares to get wisdom of stock market performance. A group of top companies are packed together to monitor the performance of the stock market which is termed as Index. Stock market index performance give you the information of overall companies statistics for judgemental purpose where market is bull or bearish or where market is trending from bullish to bearish or vice versa. Indian market consists of two indices, The S&P BSE Sensex indicating the Bombay stock exchange and CNX Nifty indicating the National Stock exchange (NSE). S&P stands for Standard and Poor’s, a global credit rating agency. S&P has the expertise in assembling the index and licensed to the BSE. CNX Nifty consists of frequently traded stocks and maintained by India Index Services & Products Limited (IISL). IISL is a joint venture between CRISIL and NSE and hence ‘CNX’ stands for CRISIL and NSE which supply information above overall market conditions every second.

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