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‘Simplify Finance for Everyone.’ This is the common goal of our team, as we try to explain any topic with relatable examples. From personal to business finance, managing EMIs to becoming debt-free, we do extensive research on each and every parameter, so you don’t have to. Scroll up and have a look at what 15+ years of experience in the BFSI sector looks like.
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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:
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.
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.
Read More – Stock Market Books – Best Books to Learn Investing & Trading
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.
S. No. | Company Name | Stock Price (₹) | Market Cap (₹ Cr) | P/E Ratio | Dividend Yield (%) | Return On Equity (ROE) - % |
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.
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:
Depository Participant (DP) | XYZ Brokerage |
Depository Participant (DP) ID | 12345698 |
Shareholder’s ID | 789456 |
Demat A/C No |
In this demat account, all his shares are stored in electronic form.
To buy and sell a share, Sooraj linked his trading account with the same broker.
Broker | XYZ Brokerage |
Trading A/C ID for Shareholder | XYZ123654 |
Shareholder’s Linked Bank A/C |
1237418529630
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.
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.
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
MRF Ltd. |
₹ 1,39,139 |
₹ 59,011 |
31.6 |
0.14 |
10.6 |
2 | Infosys Ltd | ₹ 1,556 | ₹6,46,271 | 24.3 | 2.78 | 28.8 |
3 | Bharati Airtel Ltd. | ₹ 1,875 | ₹ 11,24,229 | 28.3 | 0.43 | 28.3 |
96325874112365
*T&C Apply
i.Identity Proof/Address Proof (Aadhaar card, passport, driving license, etc.)
ii.PAN Card
iii.Bank Account details
iv.Passport sign
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.
Sooraj opened a demat account with XYZ Brokerage. They provided him with daily reports and news about the stock market in India.
Example:
Sooraj becomes an avid reader of the stock investment book titled Understanding the Stock Market by Dr. Suraj Sharma.
Example:
Sooraj learns about the stock market investment from YouTube channels, Podcasts, and from other social media.
Also Read - Indian Stock Market Books PDF – Top Free Books to Download
Example:
Company Name | Stock Price (₹) | Market Cap (₹ Cr) | P/E Ratio | Dividend Yield (%) | Return On Equity (ROE) - % |
State Bank of India | ₹ 811 | ₹ 7,23,653 | 9.33 | 1.96 | 17.2 |
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.
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.
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.
