Some of the most interesting and astonishing facts about the Indian Stock market are listed below which had been rarely known to people. These facts might shock you but they are extremely important for investors. So, 5 most surprising facts about the share market are:
- Equity Listing: The Bombay Stock Exchange (BSE) has around 5000 companies listed, which is the highest for any stock exchange in the entire world. The Bombay Stock Exchange holds the first position amongst all other stock exchange markets with the highest number of firms associated with it. Also, around three thousand stocks are noted to be traded on a daily basis. Click here to know more.
The National Stock Exchange (NSE) in India ranks second only after Bombay Stock Exchange and caters to about one thousand seven hundred and fifty companies, which is even less than half number of companies which the Bombay Stock Exchange caters to.
The oldest stock exchange was established in 1602 by the Dutch East India Company. The Amsterdam Stock Exchange is famous as the oldest stock exchange to exist in the world.
- Investment volume: Another major fact states that out of INR 22124 billion household savings, around two percent of the total is only used for investing in equities in India.
In India, a majority of people are interested in investing in banks, real estate or housing and gold. The year of 2015 and 2016, noted that most people have invested into housing and real estate upcoming projects. Thus, investors also got the opportunity to make huge amount of money and gain profits as well in Indian market and, due to this, the market has been ranked to be amongst the top performing ones across the globe. The years of 2015, 2016 and 2017 also served to be quite profitable for the share market.
- Participation: Apart from all the profits earned, there is still seen a low rate of participation from the people in the stock market. The country has a population of about 1.2 billion people out of which only twenty million people have trading accounts and are active participators. It was noted that there is still hardly any participation from the people in the share market. With over 1.2 billion people in the country, only around 20 million have trading accounts. Many are even closing and discontinuing their existing accounts.
- Foreign Investments: Many surveys and researches reveal that the foreign institutional investors have larger amount of stocks in the Indian companies. The share of foreign institutional investors in Indian companies is about 10.45% which is much more than the stake of Indians which is only about 3% combining the mutual funds as well. Foreigners have been investing quite largely in the Indian market.
- Foreign Institutional Investors: The year 2012 showed that the foreign institutional investors (FII) invested around $8.90 billion in the Indian share market. Also in 2012, insurance companies, mutual funds and many other domestic countries noted a sale of about $4 billion worth of shares. In January 2012, the governing authorities removed restrictions regarding foreign citizens investing in the Indian stock market and due to this prohibition the Indian stock market witnessed a huge number of foreign investors and also the foreign investors profited greatly from Indian stock market.