Stock markets are one of the important investment avenues. People invest in the stock market through NSE India and BSE. After demonetisation, the flow of funds in the stock market has shown a good jump. In fact, the reason for such jump is higher returns from the stock market. Investors are now more willing to invest directly in the equity market or through mutual funds. Since stock markets are hugely popular, we must know the history behind it. In this article, we shall learn about the history of NSE India and much more about it.
Let us first know when and how NSE (National Stock Exchange) India came into existence.
History of National Stock Exchange of India
The National Stock Exchange of India came into existence in the year 1992. It was the first demutualised electronic exchange of India. NSE India made it possible for traders across the country to carry out trading of stocks with its fully automated screen-based electronic trading system. The incorporation of NSE India was done in 1992 under the Securities Contract (Regulation) Act, 1956. NSE India was set up to bring transparency in the capital market transactions. Many leading financial institutions participated to set up NSE India. The commencement of trading in equities was in the year 1993. Similarly, the derivative segment commenced its operation in the year, 2000.
Now let us see the services provided by NSE India.
Services Offered by NSE India
NSE India provides many trading and investment services. Their services are as follows.
- Trading and investment in Equities, Indices, Initial Public Offerings, Mutual Funds, etc. There are approximately 5,000 companies listed on the NSE that are actively traded.
- Trading and investment in equity derivatives that includes global indices like Dow Jones, currency derivatives and interest rate futures.
Now let us see how the traders and investors can use the NSE India website.
How to Use NSE India Website ?
The beginners and the old investors must know how to operate or use the NSE India website (https://www.nseindia.com/). To help you in this regard we will post some of the basic features which every trader and investor must know on the NSE.
First of all the user will need to click on the Live Market option that is available on the home page of NSE India website. The user will find many options under this head.
If the investors intend to look at the stock price of any stock, he can put the stock name in the search column. The stock details along with the live price shall display on the screen for the user.
Now let us learn about the important basic features that any beginners or investor in the stock market must know while operating the NSE India website.
Pre – Open Market
The pre-open market is between 9 a.m. to 9.15 a.m. During this period, the traders can put the buying and selling orders. The pre-market settles at 9.07 a.m. and quotes are available after the settlement on the basis of buy and sell orders. The prices of the nifty 50 stocks are available in the pre-open market segment.
Also Read – Stock Market Timing
Under this segment, the users can get the quote of the stock during the market hours. The nifty 50 stocks are listed under this segment. The users can see the 52-week high and low of the stock. In addition, the users can also see the volume of stock traded. Furthermore, if one wants to see more details of the stock, he can simply click on the particular stock and read the details.
Index segment represents the different constituents of NSE India. Nifty being the constituent of NSE India is bifurcated into different market indices like nifty midcap 50, nifty midcap 100, nifty small cap 100, nifty 100, etc. Furthermore, nifty has several sectoral indices like Nifty Bank, Nifty auto, nifty metal, nifty pharma, etc. The user can see the current price, percent change, day high and low and many more details.
Top Ten Gainers / Losers
Top ten gainers and losers highlight those nifty 50 stocks that rose and fell. To put it another way, the top gainers reflects the top 10 nifty 50 stocks that rose. On the other hand, the top losers reflect the top 10 nifty 50 stocks that fell during the day. By seeing the top gainers and losers, the user can get an idea of the segment that made a good rise and good fall.
Most Active Securities
Most active securities are those stocks that show a big change in the price of the stock. The most active stocks are those that show a significant change in stock price due to a surge in volume. In fact, by seeing the most active securities the user learn which stocks have shown a significant change in the value of the stock along with volumes.
Advances and Declines
To know the overall sentiment of the market, the user can visit the advances and declines segment. This segment on NSE India website shows the overall data of the stocks that rose and fell. To put it another way, the user can know the number of shares the rose and fall on the NSE. Therefore, the user can come to know the overall sentiment of the markets by looking at this section on the NSE India page.
New 52 Week High Low
New 52-week high low section of the NSE India page shows the stocks that made new 52-week high and low during the day. In fact, the user can know which stocks have performed well by checking the 52-week high segment. While the user can know the stock that is not performing well by looking at the 52-week low segment.
This section reflects those stocks that have shown have a significant rise in the volume of shares traded. In fact, the single day volume comparison is drawn with the 1-week and 2-week average volumes. Total 25 stocks form part of this section. The trader or investor looking to invest in securities that have a significant change in the volume can visit this page.
Charts help the user in understanding the historical price of the stock. By looking at the charts the traders and investors can know the highs and lows made by the stock over a period of years. This helps in taking right investment decisions and making good gains on the investment.
Price Band Hitters
Stocks listed on the NSE have certain limit upto which they can rise or fall. Such limit is known as circuit filters. When any stock hits the circuit on any side, it is termed as price band hitters. The trader or investor can look at the stocks that hit the circuit during the trade in the price band hitters section on the NSE India website.
The traders who deal in future and option in the stock market, OI Spurts section is for them. Any change in the outstanding interest is important for f&o traders. The traders can see the change in the interest during the trading session under OI Spurt section.
The above points signify some of the basic features that any beginner in the stock market must know on the NSE website.
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I am a passionate, active Trader and Investor in Stock Markets and the founder of this blog.My aim is to help people,especially beginners,take informed decisions regarding Trading,Investing and Personal Finance by learning basics.