--- title: "Indian Stock Markets Explained: NSE, BSE, Indices, Products" description: "How Indian stock markets work: NSE and BSE, indices and benchmarks, shares, IPOs, mutual funds, ETFs, derivatives, bonds and REITs, from basics to products." source_url: "https://www.rupeecase.com/learn/indian-markets" --- [RupeeCase Learn](/learn/)/Pillar guide/14 modules, 2 paths # Indian stock markets: the complete guide India's equity markets are among the fastest growing in the world. Understanding how NSE and BSE actually work, what products trade on them, and which ones belong in your portfolio is the foundation on which every other investing decision sits. This pillar covers both. * **14**modules * **2**paths * **133 min**of reading [Start with 1.1](/learn/path-1/module-1-1-how-indian-stock-markets-work)The paths ## How the market actually works Most investors start with "what stock should I buy." The better question is "how does the market decide what a stock is worth." Order books, price discovery, indices, corporate actions, costs and taxes. These are the plumbing. Without them, factor and momentum strategies are just words. India has two main exchanges. The National Stock Exchange (NSE) is the larger by volume and the venue for most derivatives. The Bombay Stock Exchange (BSE) is older and still the primary listing venue for many corporates. Both are regulated by SEBI. The equity day runs from a 9:00 pre-open auction to continuous trading from 9:15, and since 3 August 2026 stocks with F&O contracts close through an auction after 3:15 pm while the rest trade until 3:30. Every trade settles T+1. 23.44 Cr Demat accounts in India, July 2026 Depository data T+1 Settlement for every listed share since 27 Jan 2023 SEBI 22,520 Nifty 50 close on 9 Oct 2026, 10.6% below a year earlier NSE The rules underneath change more often than people think. In the last two years alone, tick sizes started to vary with price, index lot sizes were cut, the closing price moved to an auction for the largest stocks, and retail algo trading got its own framework. Module 10.1 has the current plumbing in one place. [1.1How Indian stock markets workNSE, BSE, clearing corporations, depositories, price discovery, circuit filters.12 min](/learn/path-1/module-1-1-how-indian-stock-markets-work) [1.2Understanding stock dataOHLC, volume, open interest, circuit limits, corporate action adjustments.12 min](/learn/path-1/module-1-2-understanding-stock-data) [1.3Indices and benchmarksNifty 50, Nifty 500, sectoral indices, how weights are computed.13 min](/learn/path-1/module-1-3-indices-and-benchmarks) [1.4Reading financial statementsIncome statement, balance sheet, cash flow. What to look for, what to ignore.11 min](/learn/path-1/module-1-4-reading-financial-statements) [1.5Orders, costs, and taxationMarket vs limit orders, STT, brokerage, GST, slippage, and the real cost of a trade.12 min](/learn/path-1/module-1-5-orders-costs-taxation) ## The products you can actually buy Equity shares are only one of many instruments that trade on Indian exchanges. Mutual funds, ETFs, index funds, bonds, derivatives, REITs, InvITs, and commodities each serve different purposes in a portfolio. Knowing which is which, and which belongs in your allocation, is half the work. This path is deliberately structured so a complete beginner can start at module 6.1 and finish module 6.9 with a working map of the entire Indian investable universe. [6.1Equity shares: structure, rights, corporate actionsWhat you actually own when you buy a share. Splits, bonuses, dividends, rights issues.10 min](/learn/path-6/module-6-1-equity-shares-structure-rights-corporate-actions) [6.2IPOs and new listingsHow to evaluate a new listing. Why most IPOs underperform and which ones do not.8 min](/learn/path-6/module-6-2-ipos-new-listings) [6.3Mutual funds: structure, types, costsAMCs, schemes, categories, expense ratios, NAVs, and the hidden costs.8 min](/learn/path-6/module-6-3-mutual-funds-structure-types-costs) [6.4ETFs: how they workCreation baskets, authorised participants, tracking error, liquidity.8 min](/learn/path-6/module-6-4-etfs-how-they-work) [6.5Index funds vs ETFs vs activeWhen to pick which, Indian specific cost comparisons.8 min](/learn/path-6/module-6-5-index-funds-vs-etfs-vs-active) [6.6Derivatives: futures and optionsLot sizes, margins, expiries, Greeks. Why 93 percent of retail F&O loses money.8 min](/learn/path-6/module-6-6-derivatives-futures-options) [6.7Bonds and fixed income in IndiaG-Secs, corporate bonds, NCDs, tax free bonds, SGBs, yield curves.8 min](/learn/path-6/module-6-7-bonds-fixed-income-india) [6.8REITs and InvITsIndian REITs explained. Yields, distribution taxation, suitability.7 min](/learn/path-6/module-6-8-reits-invits) [6.9Gold, commodities, and internationalSGBs vs gold ETFs, MCX commodities, LRS for foreign equity.8 min](/learn/path-6/module-6-9-gold-commodities-international) ## Common questions about Indian stock markets ### How does the Indian stock market work? India has two main exchanges, NSE and BSE, both regulated by SEBI and open from 09:15 to 15:30 IST on weekdays. NSE is larger by volume and the venue for most derivatives. BSE is older and still the main listing venue for many companies. ### What can I invest in on Indian exchanges? Equity shares, mutual funds, ETFs, index funds, bonds, derivatives, REITs, InvITs and commodities all trade in India. [Path 6](/learn/path-6/) explains each one, from equity shares in Module 6.1 to gold, commodities and international investing in Module 6.9. ### What is a stock market index like the Nifty 50? A stock market index tracks a basket of stocks and serves as a benchmark. [Module 1.3](/learn/path-1/module-1-3-indices-and-benchmarks) covers Nifty 50, Nifty 500 and sectoral indices and how their weights are computed. Most plain indices weight stocks by company size, while a quantitative index weights them by fixed rules. PThe paths ## 2 paths carry this pillar. [Path 01Market FoundationsBeginner, 5 modules, 60 min](/learn/path-1/)[Path 06Indian Financial ProductsIntermediate, 9 modules, 73 min](/learn/path-6/) QQuestions ## Answered from the modules. How does the Indian stock market work?India has two main exchanges, NSE and BSE, both regulated by SEBI. Pre-open starts at 9:00, continuous trading at 9:15, and since 3 August 2026 stocks with F&O contracts close through an auction after 3:15 pm while others trade to 3:30. NSE is larger by volume and the venue for most derivatives. What can I invest in on Indian exchanges?Equity shares, mutual funds, ETFs, index funds, bonds, derivatives, REITs, InvITs and commodities all trade in India. Path 6 explains each one, from equity shares in Module 6.1 to gold, commodities and international investing in Module 6.9. What is a stock market index like the Nifty 50?A stock market index tracks a basket of stocks and serves as a benchmark. Module 1.3 covers Nifty 50, Nifty 500 and sectoral indices and how their weights are computed. Most plain indices weight stocks by company size, while a quantitative index weights them by fixed rules. How many demat accounts are there in India?About 23.44 crore in July 2026, across the two depositories. Every share you buy on NSE or BSE settles into your own demat account, T+1. +Other pillars [PillarSystematic Investing18 modules, paths 2, 3, 5](/learn/systematic-investing)[PillarPortfolio Construction11 modules, paths 4, 10](/learn/portfolio-construction)[PillarBehaviour and Business13 modules, paths 8, 9](/learn/behaviour-and-business)[PillarMacro, Tax, Regulation14 modules, paths 7, 11](/learn/macro-tax-regulation) Education only, not investment advice. RupeeCase is a technology platform operated by QC Alpha Technologies Pvt Ltd; it is not a fund, a PMS or a SEBI registered investment adviser. Model returns are back tested and not a promise of future returns. Figures carry the date they were checked. 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