Stock Market in India
Investing in the Indian Stock Market
Stock Markets in India
STOCK MARKET – INVESTING IN THE INDIAN STOCK
MARKET
Today India and China are two countries that are very much in the news as two of the world’s fastest growing economies. The Indian stock market is booming and has attracted the attention of fund managers all over the world.
Investing in the stock market by Indians has in the past few years become popular.
Stock
brokers are now common all over India. 
Many middle class families after
hearing and reading get rich stories associated with the stock market
want a piece of the action and have started to invest in the stock
market.
Most new issues of stocks, even of new companies just going
public are often oversubscribed.
India’s first stock
exchange was established in 1875 in Bombay. The Bombay stock Exchange is
now called the Mumbai Stock Exchange.
INDIA’S FLOURISHING ECONOMY
While many think that India’s economy is booming today because of outsourcing and call centers. Manufacturing and research sectors are also adding to India’s economic wellbeing.
Investment is flowing into India
because of liberal rules of the Government of India. 
comes
to mind. India being a democracy and for many investors this is a plus
point for India. Had India opened its market to foreign investment
earlier quite a bit of foreign investment that ended up in China would
have perhaps been invested in India.
The Indian government has also finally taken note of the poor state of infrastructure. Some progress is now being made in Highway improvement, power sectors as well as telecommunications. Improved infrastructure will certainly add to India’s economic growth and wellbeing in the years to come.
INVESTING IN THE INDIA’S STOCK MARKET
Laws have now changed in India and allow foreigners to invest in the Indian stock market. In some specific industries foreigners can even hold up to 100 per cent of shares.
Many Non Resident
Indian’s (NRI’s) are today investing or contemplating to purchase stock
in the Indian stock market. Many Indian companies have been posting
record profits and some paying out high dividends. Regulations today
make it easier for foreign residents to buy stocks on the Indian stock
exchanges.
Is the Indian stock
market in India a good market to invest in? News reports of enormous
profits made by people are quite common in India. However news reports
of stock market manipulation are also more common in India.
Stock purchases in the Indian stock market can be quite rewarding if purchases are made after proper research and sound advice from reputed stock advisors or business consultants. There are some excellent companies in India that have generated immense profits for their shareholders. As with any other stock markets worldwide, careful research is required before buying stocks in India.
When investing in the
Indian stock market, I would stay away from what are known as penny
stocks. Unless a company has built a reputation I would not buy their
stock, especially new companies who do not have enough information
available for the public. Research a company before investing in it.
Non Resident Indians who wish to invest in the Indian stock market need an income tax account number called the 'PAN NUMBER'
Pan number applications are now available on the internet and a request for a new PAN number can be made online. If you reside abroad the fee for new pan card including mailing overseas is Indian Rupees 717.
Those wanting to apply online for a PAN card
can visit our or
wanting more information can do so by visiting
https://tin.tin.nsdl.com/pan/index.html
Step by step instructions on how NRIs can apply for a PAN Card are also
given on our 'PAN CARD' pages.
For those NRI's who travel to India occasionally for extended periods. Having a PAN card can make a lot of things easier for you in India. When making most large purchases or opening bank accounts, wanting a bank safety deposit box etc a PAN number may be required.
Investing today in the stock market requires a good understanding on what can be expected going forward. Some people are of the opinion that when people buy stocks in large numbers the price always shoots up. However they fail to realize the other side of the equation. If people are buying a particular stock in large numbers, then equally someone is also selling the same stock.
Speculation is part of buying stocks. When we make a stock purchase we are all usually speculating that the stock will go up. Speculating after some form of careful research may help avoid disappointment to some degree for stock purchasers. If you have done your homework and researched your purchases well, you will stand a much better chance of meeting your investing goals. Stock brokers, stock analyst, business advisors and financial newspapers are excellent sources of information for those choosing to invest in the Indian market.
NEW STOCK ISSUES IN INDIA
New stock offerings are made announcements by
way of advertisements are made in major newspapers in India. What I have
seen is that people assume that new issues will definitely go up and
subscribe to buy stocks in the new issues by filling in applications for
the stock. By way of advertising and brokers an impression is passed on
that the stock is a must buy. I have heard that new issues are usually
oversubscribed. Buying stock issues in new companies can be very
risky.
Investing in the Indian stock market does have a
potential of astounding returns but at the same time care should be
exercised as to what one is investing in. 
