National Stock Exchange of India
Over the last few years India has had one of the world's fastest growing economies. This is in large part the result of a massive population and a concerted effort on the part of the government to change the policies that had held back the country before. As a result of this growing economy the National Stock Exchange of India has started to take on an increased importance amongst investors worldwide.
The National Stock Exchange of India is actually the second largest in the nation being slightly smaller than the much older Bombay Stock Exchange. There are actually quite a few different stock exchanges in the country but more and more the two largest exchanges are starting to become dominant. This is probably a good thing as it simplifies the process of investing and makes it easier for companies to raise money. It also helps to make it easier to regulate the markets which has been a problem in the past in India. The consolidation of the markets has also made it much easier to track the ups and downs of stocks in India.
The National Stock Exchange of India was founded in 1992 when it was realized that the Bombay Stock Exchange was not able to meet the needs of the rapidly growing Indian economy. It also allowed the bankers who were trading the stocks a way to make more money since they are the ones who own the National Stock Exchange. This is a big part of why it is one of the fastest growing exchanges in the world; the investment banks have an incentive to list companies on the National Stock Exchange when they take them public since they own the exchange.
Regardless of why the National Stock Exchange of India was founded there is no denying that it has been beneficial to the Indian economy. There are a wide variety of companies listed on the exchange but the biggest sector is the fast growing technology industry. This is an area where India is starting to become a major player on the world stage. In addition to trading stocks the National Stock Exchange also allows for the trading of derivatives giving investors a wider range of options.
The National Stock Exchange is widely followed by people looking to gauge the strength of the Indian economy. In this case it is a little more difficult than it is with exchanges in other countries because there are two stock exchanges that are virtually the same size. This makes it hard to tell which of the two is more important. In order to track the National Stock Exchange it is necessary to have an index. There are actually several of them but the one that is most widely used is the NIFTY. This is an index that includes the fifty largest stocks on the National Stock Exchange of India.