Top facts on Indian Finance

The Indian financial market can be broadly categorized into Indian money market and Indian capital market. The Indian financial sector is a pillar for the economy of the country and generates a considerable number of jobs in the country.

India Finance: An Overview

In India, the money market deals with short-term financial instruments and the capital market deals with securities (equity or debt) which are generally considered as long-term investments.

The Indian money market can be categorized into the following:
  • The organized sector (made up of public, private, and international co-operative banks and commercial banking institutions, collectively named as scheduled banks).

  • The unorganized sector (consisting of individual or local banking institutions that are held and operated by families or loan providers and NBFCs or non-banking financial companies).
In village areas and suburban places, microcredit and unorganized sector are still favored on top of conventional banking institutions, particularly for non-productive objectives, such as short-term loans and family events like marriages.

Indian capital market is also a powerful segment of the country’s economy.

The BSE Sensitive Index is also known as the BSE SENSEX. This is a value-weighted index which has 30 companies as its components and the base year is regarded as April 1979 (100).

These components or corporations of the BSE Sensex are the biggest and most dynamically bought and sold stocks in the Indian capital market.

These stocks have certain ticker symbols against them and represent different industries in the Indian stock market.

Stocks and shares of various companies in India are publicly bought and sold with the help of different stock exchanges such as the following:
  • BSE (Bombay Stock Exchange)
  • National Stock Exchange, also known as NSE

List of Stock Exchanges in India

India is home to more than 20 stock exchanges which also include regional stock exchanges. Given below are the names of the other stock exchanges in India:
  • United Stock Exchange of India (USE)
  • Over the Counter Exchange of India (OTCEI)
  • MCX Stock Exchange (MCX-SX)
  • Madras Stock Exchange (MSE)
  • Inter-connected Stock Exchange of India (ISE)
  • Cochin Stock Exchange (CSE)
  • Ahmedabad Stock Exchange (ASE)
  • Calcutta Stock Exchange (CSE)
  • Hyderabad Stock Exchange (HSE)
  • Bangalore Stock Exchange
  • Ludhiana Stock Exchange
  • Delhi Stock Exchange (DSE)
  • Bhubaneswar Stock Exchange
  • Jaipur Stock Exchange (JSE)
  • Vadodara Stock Exchange
  • Madhya Pradesh Stock Exchange, Indore
  • Uttar Pradesh Stock Exchange (UPSE)
  • Pune Stock Exchange Ltd.
  • Coimbatore Stock Exchange Ltd.
  • Magadh Stock Exchange, Patna
  • Meerut Stock Exchange
  • Saurashtra Kutch Stock Exchange
  • Guwahati Stock Exchange Ltd.
Other than these exchanges, there are commodity exchanges in India and the names are given below:
  • National Commodity & Derivatives Exchange Limited (NCDEX)
  • Multi Commodity Exchange of India Limited (MCX)
  • Commodity Exchange Limited (ICEX)
  • Indian National Multi-Commodity Exchange (NMCE)
As laid down by the National Stock Exchange (NSE), buying and selling of stocks are performed through the following:
  • CNX 100
  • CNX 200
  • S&P CNX 500

Bombay Stock Exchange (BSE)

The Bombay Stock Exchange is situated on Dalal Street in Mumbai, the financial capital of India. BSE is the oldest stock exchange to be set up in the Asian continent. More than 5,000 corporations based in India are listed with the exchange. Every day, more than 8,100 stocks are bought and sold through the exchange. The corporations that are listed with BSE enjoy a market capitalization of more than US$ 1.7 trillion.

Banking and insurance industry in India

Insurance is a big and profitable industry in India. At present, there are 47 insurance carriers in India, which comprise life and non-life general insurance companies. Both private and public banks operate in the Indian banking sector and some of them are foreign-based banks. All these banks offer deposit/savings and loan products to corporate and individual clients.

Last Updated on April 14, 2021