How to Study the Stock Market in India?

Let’s take an example of Sooraj, who began trading in 2019, feeling unsure at first. But through consistent learning, reading annual reports, tracking financial news, and following experts, he can now assess a company’s stock performance confidently.

Today, he could identify a company’s performance in the stock market. He trusted his intuition and purchased 100 shares of Asian Paints in May 2020 for ₹ 158.38, bringing his total investment to ₹ 15,838.

In May 2025, Asian Paints' share increases to ₹ 2,299.6, bringing his investment to ₹ 2,29,960 for the 100 shares that he purchased. 

He also receives a bonus in the ratio of 1:1, so this is how his investments grow:

• 1:1 bonus: An Extra share for the purchased one, which is free.
• 100 shares become 200 shares
• ₹ 2,299.60*200 = ₹ 4,59,920

This is a 28.03 % growth of his initial investment (₹ 15,838). Thus, Soorja breaks the myth of high risks in the stock market. This blog teaches you how to study the stock market in India.

What is the Stock Market?

Many times, Ramya has seen her colleagues discussing the stock market of India. The conversation always piques her interest, but this time she asked her colleague Ram about he stock market.

He explains that it is like a bazaar street, where companies offer their shares, after an Initial Public Offering (IPO), like setting up stalls. He further explains that these shares get traded in the Bombay Stock Exchange (BSE) or the National Stock Exchange (NSE), where common people can buy and sell their shares.

Ram showed the following details from Google Finance:

Ram adds that if she buys any one share from these companies, she can also become a tiny owner. Curious to hear this explanation, Ramya purchases 50 shares of Bharati Airtel Ltd for the price of ₹ 1,875, totalling it to ₹ 93,750. Ramya’s first step to study the stock market remains key to changing the course of her financial planning.

How to trade in the Stock Market?

The native place of Sooraj is Mumbai, which itself motivates him to take inspiration from industrialists like Ratan Tata, Ambani, Birla, and many others. However, he had one to guide, until one day when he came to know about Warren Buffett from a news article, who became rich by investing in the stock market. 

That article inspired him to learn about the stock market in India since 2009. Let’s see how he amassed his wealth from the stock market:

Step 1: Selection of Depository Participant

In this demat account, all his shares are stored in electronic form.

Step 2: Opening a Trading Account

To buy and sell a share, Sooraj linked his trading account with the same broker.

Step 3: Initiation of Trading

Sooraj deposited his hard-earned money of ₹ 20,000 as his initial investment capital. He purchased his first 100 shares of Canara Bank for the price of ₹ 115.48, totalling ₹ 11,548.

• Broker Fees ₹ 50
• Total Investment ₹ 11,598

Sooraj buys and sells shares through his demat account, and the payments are made from his linked bank account. Every day, he 

researches financial news and gives much importance to the stock market.

What started with a meagre investment of ₹ 11,598 gets accumulated whenever the price increases. In this way, Sooraj secures his financial future and makes wealth.

Documents Required to Open a Demat and Trading Accounts

Sooraj’s private brokerage firm takes care of all the procedures to open his demat and trading account. However, the firm requests him to submit the following documents to open these accounts:

1. First, he submits an account opening form that incorporates all of his mandatory details.
   
   
2. Submission of KYC details:

i.Identity Proof/Address Proof (Aadhaar card, passport, driving license, etc.) 

ii.PAN Card

iii.Bank Account details

iv.Passport sign

3. Finally, he completes his verification in the brokerage’s office.
   
   
4. After completing this seamless procedure, Sooraj is now able to buy and sell shares that he wants.

Resources to Study the Stock Market in India

Sooraj masters the stock market, not overnight, but for at least one year, with consistency. Let’s see the steps that he has taken to empower his knowledge of the stock market.

Step 1: Broker’s Guidelines

Sooraj opened a demat account with XYZ Brokerage. They provided him with daily reports and news about the stock market in India.

Example: 

• The firm informed him about the stocks of the State Bank of India, which is a well-performing one, with the price of ₹ 811.
  
  
• He was also informed about its P/E ratio of 9.33, and its Dividend Yield of 1.96%

Step 2: Readings on Stock Investments

Sooraj becomes an avid reader of the stock investment book titled Understanding the Stock Market by Dr. Suraj Sharma. 

Example: 

• From this book, he learned about the Market Cap and Return On Equity (ROE).
  
  
• So he understood about the State Bank of India’s Market Cap of ₹ 7,23,653 crore and its Return On Equity (ROE) of 17.2 %.

Step 3: Insights from Economic Experts

Sooraj learns about the stock market investment from YouTube channels, Podcasts, and from other social media.

Example:

• He follows some of the private brokerage firms and companies on Instagram and YouTube for more insights.
  
  
• This inspired him to start his stock investment from the State Bank of India, which accounts for ₹ 811 per share.
  
  
• These experts advised him to start with a low investment and accumulate his values slowly.

Let’s see what difference Sooraj can make with the stocks of the State Bank of India:

Sooraj bought 500 shares of the State Bank of India, worth ₹4,05,500. Though other stocks might offer higher returns, he chose SBI for its reliability and steady growth. 

As a top public sector bank with low bankruptcy risk, it seemed a safer and more stable investment option to him.

Conclusion       

To build a mass wealth, one needs consistency and the ability to adapt according to the trends of business. When Sooraj began his investment in the stock market in 2009, he had minimal access to resources. But today, he sharpens his knowledge with that, and expands his level of thinking with the current trends in the market, with the help of mass media. Thus, he proves that the stock market is no longer a bankrupting instrument for investors.

FAQs

What is the Stock Market?

It is a share market where the publicly listed companies’ shares are traded and issued.

Which are the two leading stock exchanges in India?

The National Stock Exchange and the Bombay Stock Exchange are the two leading stock exchanges in India.

Is it necessary to open a demat and trading account for the share market?

Yes, it is necessary to open these accounts to trade in the share market.

Should I complete any degrees to trade in the stock exchange?

No, you do not need any degrees or additional educational qualifications to trade in the stock exchange.

Is it safe to buy and sell shares of a specific company at my own will?

You can buy and sell your shares at your own will. However, you need to ensure proper timing to yield profit.

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LoansJagat Team

We are a team of writers, editors, and proofreaders with 15+ years of experience in the finance field. We are your personal finance gurus! But, we will explain everything in simplified language. Our aim is to make personal and business finance easier for you. While we help you upgrade your financial knowledge, why don't you read some of our blogs?