By TradingLeadApril 12, 20262 min read124 views

Guide to Indian Stock Market#

Everything you need to know about trading and investing in India's stock markets.

Market Structure#

Exchanges#

  • NSE (National Stock Exchange): Primary exchange, highest volumes
  • BSE (Bombay Stock Exchange): Asia's oldest exchange (1875)

Key Indices#

IndexCompositionSignificance
Nifty 50Top 50 NSE companiesIndia's benchmark
SensexTop 30 BSE companiesOldest Indian index
Bank NiftyTop 12 banking stocksMost traded for F&O
Nifty Midcap 100Mid-cap companiesGrowth segment
Nifty Smallcap 250Small-cap companiesHigh risk/reward

Market Timings (IST)#

SessionTiming
Pre-open9:00 AM - 9:08 AM
Normal9:15 AM - 3:30 PM
Post-close3:40 PM - 4:00 PM

Regulatory Framework#

  • SEBI: Securities and Exchange Board of India (regulator)
  • Depositories: NSDL & CDSL (hold shares electronically)
  • Clearing Corp: NSE Clearing, Indian Clearing (settlement)

Account Types Needed#

  1. Demat Account: Holds your shares electronically
  2. Trading Account: Place buy/sell orders
  3. Bank Account: Fund transfers (linked to above)

Most brokers provide all three: Zerodha, Groww, Angel One, Upstox

Taxation (FY 2025-26)#

TypeTax RateHolding Period
STCG (Equity)20%< 12 months
LTCG (Equity)12.5% (above โ‚น1.25L)> 12 months
F&O IncomeSlab rate (business income)N/A
DividendSlab rateN/A

Other Charges#

  • STT: 0.025% (buy) + 0.025% (sell) for delivery
  • Brokerage: โ‚น0-20 per order (discount brokers)
  • GST: 18% on brokerage
  • Stamp Duty: Varies by state
  • SEBI Turnover Fee: Negligible

F&O Trading in India#

  • Lot sizes: Nifty (25), Bank Nifty (15), stocks (varies)
  • Expiry: Weekly (Thursday) for index; Monthly for stocks
  • Margin: SPAN + Exposure margin required
  • P&L: Settled to account T+1 for F&O
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