Source: Snowball APP, Author: Meng Xiaokai, (
## Indian Stock Exchange’s establishment is far more than most countries,
In 1875, Emperor Guangxu of Daqing just ascended the throne.India has established the first Mumbai Stock Exchange (BSE), and is also the largest exchange in India, and currently has nearly 5,000 listed companies.Another Indian National Stock Exchange (NSE) was established in 1992 with 1,600 companies.
Because India was a British colony and it continued the financial system system left over from Britain, many aspects of the Indian market were very international.
For example, the registration system was fully implemented in 1992 and the administrative pricing was canceled. After that, there were a total of 3,552 listed companies in India’s two major stock markets in the four years of 1993-1996.
It is strict supervision in parallel. As long as it violates the terms of the listing agreement, it will be ordered to be delisted. In 2004, 974 were delisted.
In some years, there will even be more than the number of delisting companies than IPO (listing). At the end of 2017, there will be 5,616 listed companies on the Mumbai Exchange. By the end of 2018, there willThere are only 4,732 now.Therefore, the Indian stock market is a big movement and a large wave of sand.
The more important index of Mumbai, India is the Sensex30 Index (also known as the Mumbai Sensitive Index).The index was first released in 1986.The word "Sensex" was created by the stock market analyst Deepak Mohoni.
The index contains 30 stocks from Indian companies from different industries, which are regarded as the vane of Indian economy.
The establishment of the index is mainly to reflect the most representative, large scale, better liquidity and good financial conditions in the Indian stock market.Essence
The total market value of its component stocks accounts for a high proportion of the total market value of the Mumbai Exchange. Since 2018, the index has been more than 50%, and its rise and fall has become an iconic index to observe the changes in the Indian stock market.
Below is the K -line trend of the index for more than 30 years.
Not to mention, but looking at some index K -line, you can answer many questions.
In the past, I was limited to domestic high -quality companies, thinking of getting more than average income.Later, it was found that a single listed company might have financial fraud, worried about the destruction of value.
Later, he focused on the broad -foundation of the country, as well as high -quality industry funds, such as white wine, food consumption, medical treatment; after that, everyone saw it.
After teaching, I now put their attention on global vision; finally found the Indian index fund.For more than thirty years, you can answer too much questions.
The Indian stock market has experienced several rounds of bulls and bears in the past few decades. The following are the main stages:
The first stage: long -term sidewalk and early reform exploration stage (the late 1980s -early 1990s)
In the late 1980s, there were a large number of listed companies in India, but the market development was relatively slow.During this period, the Indian stock market experienced long -term horizontal shocks. For example, the Indian Nifty50 Index fluctuated between 800-1400 points between 1992 and 2003, and the overall lack of obvious trend.
In 1991, India implemented the reform of liberalized economic reforms, canceled the import product permit system, and opened up foreign -owned shares at the same time, and simplified investment procedures, which laid a certain foundation for the subsequent development of the Indian stock market.
The second stage: starting and rapid development in the bull market (around 2003-2008)
After 2003, the Indian stock market began to enter a more obvious bull market.During this period, the Indian economy maintained a high growth rate, and the growth rate of GDP (GDP) was stable at more than 6%, providing a solid economic foundation for the stock market.
The continuous improvement of corporate profitability has attracted a large amount of domestic and foreign funds into the stock market.The main indexes of the Indian stock market, such as the Sensex30 index of Mumbai and the Nifty50 index, have risen sharply, and the market value of the stock market has continued to expand.
The third stage: the bear market stage caused by the global financial crisis (2008-2009)
The global financial crisis broke out in 2008, and the Indian stock market was also severely impacted.As the global economic situation deteriorates, investors’ confidence is frustrated, and funds flow out of the Indian stock market.
Both the Mumbai Sensex30 index and the Nifty50 index fell sharply, the market value of the stock market shrinks sharply, and the Indian stock market has entered a short -term bear market stage.
Fourth stage: recovery and shock upward stage (about 2009-2020)
After 2009, as the global economy gradually recovered, the Indian stock market began to gradually recover.The Indian government continues to implement economic reform policies, strengthen infrastructure construction, and promote the development of the manufacturing industry. These measures have positively affected the stock market.
During this period, although the Indian stock market experienced some fluctuations, it generally showed a trend of shocks.Especially after 2014, the Indian stock market performed strongly, attracting the attention of global investors.
Fifth stage: the fall and rebound stage under the impact of the epidemic (2020 -2022)
In early 2020, the new crown epidemic broke out worldwide, and the Indian stock market was also seriously impacted.Due to the stagnation of economic activities, corporate profits declined, investors’ confidence in the stock market was hit, and the Indian stock market fell sharply.
However, as the Indian government adopts a series of policies that stimulate economic stimulation and the advancement of vaccination, the Indian economy has gradually recovered, and the stock market has begun to rebound.In 2021 and 2022, the Indian stock market performed relatively well in the global stock market.
Sixth stage: the recent strong rising stage (2023 -to this day)
Since 2023, the Indian stock market has continued to maintain a strong rise.The continuous growth of the Indian economy, the improvement of corporate profits, and the continuous inflow of foreign capital have provided strong support for the stock market.
Overall, the Indian stock market has experienced many bulls and bears in the past few decades, but from a long -term trend, the Indian stock market has shown the characteristics of long bears.This is mainly due to factors such as the continuous growth of the Indian economy, the continuous improvement of corporate profits, and government policy support.However, the fluctuation of the stock market is still inevitable, and investors need to be cautious when investing in the Indian stock market.
India has developed well in the past 30 years, but does not mean that there is no riskMumbai Stock Exchange. India’s current risk is:
India’s political situation has an important impact on the stock market.The election results may lead to changes in government policies, which will affect the economic and stock markets.If the election results are beyond market expectations, it may cause fluctuations in the stock market
There are some contradictions and conflicts in Indian society, such as the system of surnames, religious contradictions, and the gap between the rich and the poor.The increase in social instability factors may affect investors’ confidence and have a negative impact on the stock market.
The wealthy wealthy binds national politics in depth. Through the monopoly of domestic resources, it will also delay the opening of the international market. Object companies will also suppress domestic scientific and technological innovation in China.
High dependence on European technology development, especially in recent years, if the European and American markets collapse will drive India’s valuation down.
The biggest risk is expensive.After a long -term rise, the valuation of the Indian stock market may be at a high level.If the market valuation is too high, the stock price may have been separated from the actual value of the company. Once the market emotion changes, it may trigger a sharp recovery of the stock price.
The current Indian stock market has become more and more hot, and it has attracted many investors in international markets to enter the venue. The central fiscal budget submitted by the Indian government the day before yesterday proposed to increase capital benefits and derivative transaction taxes, in order to suppress market heat.
There are risks, but the advantages are also obvious.
India is the world’s second -most population country in the world. The age structure of the population is young, the median age is relatively low, and young people have high vitality and innovative ability.Long -term development provides continuous motivation and potential.
The current India’s demographic dividend model has promoted the rise in the stock market, and economic growth is around 8%.Under such economic growth rate, it will be pushed to the stock market.
Against the background of the global population, economic growth is a miracle. At present, the Indian market is an excellent investment opportunity.
There are many poor people in India, and there are not many investors who really enter the stock market, but in the case of fake, new blood entering the market will provide the stock market liquidity.
However, the short -term trend cannot be determined. You can buy it in a pen and share the risk. Long -term returns will not be too bad (personal point of view, not investment opinions)
New Delhi Wealth Management