Which global market affects Indian market?

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Introduction  –

The value of the stock market of the whole world was $ 70.75 trillion by the end of 2019, in which the world’s most powerful stock market, which is the stock market of America, which holds 54% of the world’s market capital value, is second only to that. Japan 7% and United Kingdom 5%, although the foundation of the stock market was laid in Europe in the 12th century, as it developed, it began to take the form of the modern stock market in the 16th century.

Its main purpose was to provide money for doing business on a large scale, for this, in the initial days, money was invested for small projects and after that project was over, money was invested again for new projects. The beginning of the modern stock market is very interesting, in which money was raised through the Dutch East India Company, West India Company and on completion of that business the profit was distributed among all the investors.

The basic concept of stock market is to raise money for the business through shares and through loans. In the early days of England, this practice took place in coffee houses and could be called a kind of stock market where shares were sold and bought. Bonds were sold and bought, for which the charter of the British monarchy gave this monopoly, and all expenses were run with the money of the investor.

In which the tradition of paying dividends every year was started. Europe earned a lot of money from this, due to which the prosperity we see today in the European countries has been earned from the investments of that time. Here we will study the stock market all over the world about the stock market.

World’s Most Powerful Share Market  –

Update data as per 2021 –

1) New York Stock Exchange (NYSE) – USD 25.3 trillion
2 ) NASDAQ -USA – 22.1 trillion USD
3) Shanghai Stock Exchange (China) – USD 7.6 trillion
4) Hong Kong Stock Exchange – USD 6.8 trillion
5) Japan Stock Exchange – 6.6 trillion USD
6) Shenzhen Stock Exchange (China) – USD 5.7 trillion
7) Euro Next Stock Exchange (Europe) – 6.45 trillion USD
8) London Stock Exchange and Italy – USD 3.71 trillion
9) Toronto Stock Exchange (CANADA) – 3.1 trillion USD
10) National Stock Exchange (India) – USD 3.07 trillion

History of Share Market –

The foundation of the modern stock market was laid in Amsterdam in Europe in 1611. Even before this, there are platforms to provide money for business in history, but the modern stock market started from here and the Dutch East India Company first introduced the modern medium of investment at that time. Started to use, which started being treated through paper certificates, these transactions were investments for raw goods coming from eastern countries and those transactions ended after those goods reached the port of Europe.

Today this thing seems very strange, but at that time it was not so easy to do maritime trade, pirates, sea environment depended on it, so it was a very risky investment for the investor but the people of Europe were very much because of these risks. Succeeded in making money. On the other hand, the East India Company was established in England, which shared shares in coffee shops and the buying and selling of bonds started, which was the foundation of the London Stock Exchange.

This concept was in vogue for thousands of years, but it was used in a different form at that time, from the 16th century it was used on a greater scale in paper form, which was obtained through the monopoly charter of the British government, which allowed investors and lenders to invest. Started earning money in a big way. The main reason for the Europe that we see today is the stock market, due to which the investment of this company started giving benefits to the people at the international level and it also helped the economy of Europe to grow.

By then European merchants had well established their suzerainty over the Americas, in which the British East India Company’s rule was initially rejected and opposed by the rest of the merchants, which led to a separate independent America in 1776, after which it became the world’s largest economy. The journey of making has begun.

 American Share Markets –

As we have given above, in the world’s most powerful stock exchange, New York Stock Exchange of America and NASDAQ are considered to be the largest stock exchanges. Although the Florida Stock Exchange is considered the oldest stock exchange in America, the New York Stock Exchange was founded in 1792 by 24 stockbrokers on today’s famous Wall Street, which later became the world’s largest stock exchange.

Nasdaq became the stock exchange after this in 1971, but it became the world’s first computer-less stock market, due to which the New York Stock Exchange also had to change itself and shares and other transactions started in electronic form. Although almost all countries had their own stock exchanges in Europe, but they used to run on the buying and selling of companies doing business within their own country.

American Stock Market This international company, which does its business all over the world, started registering in it, due to which the American stock market has become so big that the market capital of all the stock exchanges of the whole world and the main two stock markets of America has more than 50% capital in it. The market belonged to these two important stock exchanges.

That is why America became the economic and political super power of the world. Today, buying and selling in electronic form is very simple and convenient, you can buy and sell in the US stock market sitting in any corner of the world.

United Kingdom’s Share Markets –

The London Stock Exchange Group of England is considered to be the oldest stock exchange in the world, older than the American Stock Exchange and was initially run from Johnathan Coffee House in London. The Royal Exchange was started in 1571 under the name of Elizabeth I, its founders were Thomas Graham and Sir Richard Kloff, a finance businessman.

Due to the bad attitude of the stock broker, he was banned from coming here, so he ran his business from Johnathan Coffee House for a long time. The London Stock Exchange was started in 1801, the London Stock Exchange and the Milan Stock Exchange were amalgamated in 2007. Today the London Stock Exchange is the seventh largest stock exchange in the world.

India’s Share Market  –

The British ruled India for about two hundred years and the London Stock Exchange of the British is considered to be the oldest stock exchange in the world. Due to this, the roots of the modern stock market started to be established in India, the year was 1875 when the foundation of Bombay Stock Exchange was laid, which is called Dalal Street.

Although the stock market of India holds only 2% share in all the stock market in the world, but the whole world sees India as a good investment. The secret of success of American companies is the reason for investing more on their modification, which should also be done by Indian companies. The second most important stock exchange in India is the National Stock Exchange, which was established in 1992 and started functioning in 1994.

In India, till 1990, the government did not have much control over the Bombay Stock Exchange, but after the policy of globalization, SEBI was established in 1988, which could control the stock market of India, it was given rights by making a law in 1992, so that the people on the stock market. Trust could be established because this was the era of big stock market scams which shook the image of India all over the world, to improve which the National Stock Exchange was destroyed, which the government started controlling.

Today, most of the transactions take place on the National Stock Exchange, in which the availability of money is more and the buying and selling transactions are more rapid. Bombay Stock Exchange This is the oldest stock exchange of India which was started on Dalal Street in 1875 under the British rule, which was given legal recognition after 1947, but it still failed to gain the trust of the people like America’s investor, so the Indian government had to National Stock Exchange and SEBI had to be established to control India’s stock market.

Who can invest in the stock market of India?

FDI in India’s stock market has been allowed to invest in India after 1990 under FPI, FII, but they have to follow the rules of investment according to the rules of SEBI. Small foreign people of India are not allowed to invest, but for this if any person has investment amount more than 50 million dollars, then they are allowed to invest, for this they have to be registered with SEBI Mutual funds, financial institutions or large investors are allowed to invest under the rules of FII.

Due to more regulation on foreign investors, the foreign investment of many companies in India has not increased as much as it should have. Talking about the investors of India, any citizen of India can invest in India’s stock market through a broker, yet India’s stock market attracts people due to lack of knowledge about India’s stock market. It has not been so successful in doing like the stock market of America.

In developed countries like America, Japan, and England, the evidence of investing in the stock market is very high, this evidence is not more than 7-8% in India and there is a lack of sufficient knowledge among the people to invest in the direct stock market. Most of the investors prefer to invest through big mutual funds and financial institutions.

China’s Share Market  –

There are two important stock markets in China, in which the first is the Shanghai stock market and the second is the Shenzhen stock market, both of which are considered to be the top five markets in the world, because of their capital market, so they are given great importance at the international level. Although the Shanghai Stock Exchange was established in 1891, it was restored in 1990 with some changes.

Like the Hong Kong Stock Exchange, its foreign investors are not allowed to invest and this stock exchange is completely controlled by the Chinese government, yet this stock exchange has the world’s third largest stock market and Asia’s largest stock market. Succeeded in becoming

In 2008, the Shanghai stock market became the second largest market in the world, but due to the economic downturn of the world, this market came down, but today it stands as the third largest stock market in the world. Although China did not open its market like India, but as a strategy, it has increased China’s economy by bringing foreign investment into the Chinese market in a different way.

Conclusion –

In this way, we have seen here how the world’s stock market started and what was its purpose, due to which it helped in creating international level companies and the world became the center of a global business. The share market operates in two ways, which are called primary market and secondary market. Once the company is listed in the stock market, those investors are seen as the primary investors.

Secondary investors can do this buy and sell many times, it does not affect the functioning of the company, only the market value of the company increases or decreases. The purpose of presenting the history of the world’s stock market here was that the stock market in India does not attract much investors, due to the lack of much information about the stock market, we have tried to give this information here.

India’s economy and China’s economy, it can become the world’s largest economy in the future, so long-term investment in India’s stock market can give good benefits in the coming time, only how can we know more about the stock market And how investors can grow, so here we keep giving information about the share market in different ways.

VANGUARD GROUP – STOCK MARKET

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