How exactly does indian stock market work?

Hello Bonita , I am Priyankush , an investor in stock market since 2006 and am a trader in stock market since 2020-21 in Options . I have NISM series 8,21b and preparing for NISM Series 15 . Indian stock market is comprised of indices like Sensex , Nifty . These indices again contain stocks based on market capitals - multiplication of share price and number of shares available for trading in stock markets . Now depending on how these stocks perform during a period the indices like nifty or sensex will change accordingly depending upon weighted average prices of these company shares . Now there will be company specific news and country specific new from indian governement , finanace minister , RBI etc. and also international news like Israel palestine Russia ukraine US elections , US federal reserve interest rate decision etc. All of these information get discounted in the price that we see on our screen because people take positions in company stocks or on the overall indices based upon these news either in advance or upon receiving the news . therefore markets are very efficient as it is not possible to manipulate stock markets by one or few players .. .for every buyer there is a seller and vice versa .. so overall its a zero sum game when it comes to number of shares which gets succesfully executed or traded in day . read less

The Indian stock market is a financial market where investors buy and sell shares in companies through stock exchanges, like the BSE and NSE. The market is regulated by the Securities and Exchange Board of India (SEBI). Here's how the Indian stock market works: Companies raise capital Companies list themselves on the stock market to raise money for expansion. They provide details about their business, financial status, and IPO (initial public offering). Investors buy shares Investors can buy shares in companies through brokers on the stock exchange. Prices fluctuate Stock prices change based on supply and demand. Trades are executed When an investor places a buy order, the broker sends it to the stock exchange. The stock exchange then finds a seller for the same share, and a price is agreed upon. The stock exchange then informs the broker that the order has been confirmed. Investors benefit Investors can profit from their investments in a number of ways: Capital gains: As companies grow, the value of their shares increases, which can lead to capital gains for investors. Dividends: Companies pay dividends to their shareholders as their profits increase. SEBI regulates SEBI regulates the stock market, stock exchanges, and Depositories Participants in India. SEBI formulates rules, conducts inspections, and ensures the transparent functioning of the stock market. read less