A Glorious History: Indian Equity Markets

Our equity markets trace their origins back to the second half of the 19th century. Picture a group of stockbrokers trading securities under the shade of a banyan tree. From these humble beginnings to becoming the fifth-largest market globally in terms of market capitalization, the Indian equity odyssey has been nothing short of remarkable.

Here are some key milestones:

• 1875: The Bombay Stock Exchange (BSE) was born, Asia’s first stock exchange. Initially, 22 stockbrokers operated opposite the Town Hall of Bombay. Later, the BSE shifted to its iconic home on Dalal Street in 1874. Other regional exchanges sprouted up in Ahmedabad, Calcutta, Madras, and Hyderabad.
• 1956: The formalization of the stock market began with the introduction of the Securities Contracts Act. BSE became the first exchange to receive permanent recognition under this act. The Unit Trust of India (UTI) was also established, laying the foundation for the mutual fund industry in India.
• 1977: Reliance Industries’ IPO marked a turning point. It became the first Indian company listed on the stock exchange, oversubscribed seven times. Reliance remains a market darling, boasting the largest market capitalization in India.
• 1986: BSE launched SENSEX, India’s first benchmark index. Over the years, SENSEX has delivered impressive returns, showcasing the wealth-generation potential of equities.
• 1992: The gates opened to foreign institutional investors, and the LPG (Liberalization, Privatization, Globalization) policy transformed the landscape. Harshad Mehta’s meteoric rise and subsequent fall captured the nation’s attention.

The Power of Investing: Direct Equity

1. Diversification Made Personal

• Direct Equity: When you invest directly in stocks, you become a part-owner of companies. You handpick your portfolio, choosing businesses you believe in. This personalized approach allows you to align your investments with your values and convictions.

2. Wealth Creation Potential

• Long-Term Growth: Historically, equities have outperformed other asset classes over extended periods. Patiently holding quality stocks can lead to substantial wealth creation. Think of companies like Infosys, HDFC Bank, or Tata Motors that have multiplied investors’ wealth manifold.
• Dividends: Many companies share their profits with shareholders through dividends. These regular payouts add to your wealth over time.

3. Active Participation

• Learning Journey: Investing in direct equity involves understanding businesses, analyzing financials, and staying informed about market trends. It’s an ongoing learning process that empowers you.
• Voting Rights: As a shareholder, you have a say in company decisions. Attend annual general meetings, vote on resolutions, and be part of corporate governance.

Remember, direct equity isn’t a get-rich-quick scheme—it’s a journey. Invest wisely, diversify, and stay committed. Your wealth awaits!

We also offer our clients with Trading Account & Demat Account (TADA) services through one of the India's leading & highly reputed distribution houses. With the same you will have easy access to capital market products of direct equity stocks and Exchange Traded Funds (ETFs).