The Stock Market of India was set up in 1875. At that time there were 22 brokers who met and established the Bombay Stock Exchange. From that time onwards the Indian Stock market has grown in leaps and bounds, and has become a forceful and competent stock market in the continent. It is equal to any international market in the world. It has the same level of efficiency and organizational ability. The market caters to the huge population of India and gives them investment opportunities. It also provides the institutions and organizations with funds. The unpredictable nature of the Indian stock market has made it very difficult for the common man to understand it. So prior to investing in the stock market you have to research it properly.

When it was started the Bombay Stock Exchange had only a few hundred people taking membership in Stock Broker Association and Native Share. In 1965 BSE was recognized permanently by the Government of India, The BSE and National stock exchange are both the main stock exchange of Indian stock market. Government of India gave permanent identification to the BSE. BSE along with National Stock Exchange both are main part of Indian Share Market and are the two national stock exchanges of India. BSE has about 5000 listings at the starting.

The stock and shares are issued to the public for investing in various companies. The revenue generated from the stocks and shares is used for business expansion or any government projects. The profit of the company is then shared by the public, which has invested in the company. The share market allows for public trading of companies and has become an important source of raising fund for the companies. The government has also formed the Securities and Exchange Board of India (SEBI) which controls the functioning of stock exchanges, investment advisors, portfolio managers, brokers and sub-brokers. The sensex is made on the basis of the performance of the stocks of 30 sound financial companies.
The Indian stock market is basically divided in two parts; the first is the primary part and the secondary part. In the primary market the shares are issued directly by the company are dealt by share brokers appointed by the companies. In the secondary market the stocks of various companies are listed in the stock exchange and are represented by the share brokers, the investors invest in companies through these share brokers.

The recent market trend has been on an up and down scale. There have been many downward graphs in the stock market. The recession is showing its affect on the stock market, so there was a huge loss for those who invest in stock markets. Though Indian economy is not totally based on world economy, it has its own domestic industry which was able to sustain the recession in Indian Economy. The Indian economy is not totally based on exports.

The sensex has seen a rising trend and has reached 17,000 points. This has given a boost to the investors. Many people had lost huge amount of money in the stock market. But, that moment has gone now and the stock market is gaining momentum now. The market is now in a better shape and those ho have invested in stocks have gained some return on their investment. This up and down trend of the market has made the investor more wary, those who are investing regularly continue to do so, but those who want to be safe are not investing in stocks right now.

The wound of losing money in stock is still raw for many people and they have not recovered from the shock. There are still many up and down swings in the market you have to carefully analyze the market before investing in any type of stock. While going through the reports you will notice that many companies have started showing an increase in their profits.

To know the trend of stock market you have to study properly the up and down trends of the market and then analyze the facts. You have to be aware of company’s progress before investing in it. Many factors affect the trend of the stock market, but right now with a stable government, there is no need to feel endangered by the market.