The current trend is that many people are building their wealth via the use of the stocks market. Online platforms for online trading make it easier for anyone in India and around the world (UK, USA, Europe) to become interested in the Indian stock market.
If you are new to this area and are confused by all of the terms - share, NSE, BSE, trade, and invest - then this guide will show you how to go through this process step by step.
The purpose of this blog is to help people who are new to the Indian stock market learn the fundamentals to start trading on their own.
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What Is the Stock Market?
Investors buy and sell shares in a company's stock through the stock market. When you purchase shares of a company's stock, you now own part of the company.
A company lists its shares on the stock market in order to:
Expand its business
Repay loans or other types of debt
Create or produce new product
Both investors and traders use the stock market to increase their wealth over time.
Indian Stock Market Overview
The Indian Stock Exchange is governed by rules and regulations that are very well organized and have experienced rapid growth over time, making them one of the fastest growing exchanges globally.
India's major stock exchanges include:
BSE (Bombay Stock Exchange), which is the oldest stock exchange in Asia; and
NSE(National Stock Exchange), where most of the trades in India occur.
Market Regulation
Market regulation is overseen by a government body, namely the SEBI (Securities & Exchange Board of India), whose purpose is to help protect investors through: 1) the promotion of sound and ethical trading practices; 2) granting investors extra rights in regards to the indicators provided in one's trading activity; and 3) ensuring the integrity of all transactions taking place within the financial marketplace.
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How Does the Indian Stock Market Work?
The Indian Stock Market operates on an electronic platform. This is how the Indian stock market operates :
A Company Gets Listed On The NSE Or The BSE
Investors Enter Buy / Sell Orders Through Brokers
Buy / Sell Orders Are Matched Via Electronic Trading Systems
Shares Are Deposited Into Your Demat Account
Funds Are Debited / Credited From Your Trading Account
All Trades Are Cleared Securely By Clearing Corporations.
Key Participants in the Stock Market
1. Investors
People who buy shares for long-term wealth creation.
2. Traders
People who buy and sell shares for short-term profits.
3. Stock Brokers
Registered intermediaries who execute trades on your behalf.
4. Regulators (SEBI)
Ensure market safety and discipline.
What Is a Demat and Trading Account?
To start trading or investing in India, you need:
Demat Account
Holds shares in electronic form
Replaces physical share certificates
Trading Account
Used to place buy/sell orders
Linked with Demat and bank account
Without these accounts, you cannot participate in the stock market.
Trading vs Investing: What’s the Difference?
Trading
Short-term approach
Focus on price movements
Requires technical analysis
Higher risk if done without knowledge
Investing
Long-term approach
Focus on company fundamentals
Suitable for beginners
Lower risk over long periods
Both trading and investing can be profitable if done with proper education and discipline.
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Types of Trading in Indian Stock Market
1. Intraday Trading
Buy and sell on the same day
High risk, high reward
Requires experience and strategy
2. Swing Trading
Holding period: few days to weeks
Balanced risk
Suitable for working professionals
3. Positional Trading
Medium to long-term trades
Lower stress compared to intraday
Stock Market Timings in India
Market Opens: 9:15AM IST
Market Closes: 3:30 PM IST
This is important for traders from UK, USA, and Europe, as timings differ based on time zones.
Is Stock Market Risky for Beginners?
Yes, the stock market involves risk — but risk can be managed.
Beginners usually lose money due to:
Lack of knowledge
Emotional trading
No risk management
Following tips blindly
With proper training, discipline, and guidance, beginners can reduce losses and build confidence
Trading psychology for Indian stock market
Common Mistakes Beginners Should Avoid
Trading without learning basics
Investing without research
Overtrading
Ignoring stop loss
Expecting quick profits
Learning from a structured stock market course can help avoid these mistakes.
Can People Outside India Learn Indian Stock Market?
Absolutely
People from UK, USA, Europe, and other countries can learn the Indian stock market and even trade as NRIs, subject to RBI and SEBI rules.
Indian markets offer:
High growth potential
Strong companies
Diverse trading opportunities
Conclusion
The stock market is not gambling — it is a skill-based profession.
Beginners who take time to learn, practice discipline, and follow the right guidance can build long-term success.
If you are serious about learning trading or investing in the Indian stock market, start with strong fundamentals and structured education.
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Want to Learn Stock Market Professionally?
NIFM Academy offers beginner to advanced stock market courses designed for:
Indian traders
NRIs
Global learners interested in Indian markets
Learn trading with expert guidance and real market exposure.