Following economic liberalization in the early 1990s, the Indian stock market landscape significantly transformed. The National Stock Exchange (NSE) of India was established in 1992 with the aim of enhancing transparency in the Indian equity market and providing inclusive membership opportunities that were not available with the BSE at that timeNagpur Investment. Both the BSE and NSE, have played a pivotal role in shaping the Indian capital market into what it is today.

The liberalization of the Indian economy welcomed foreign investments, leading to an influx of capital and subsequent rapid market expansion. Foreign institutional investors provided liquidity to the market, fostering stability and growth. In 1992, establishing the Securities and Exchange Board of India (SEBI) marked a significant milestone, introducing regulatory changes that enhanced market transparency, improved corporate governance, and curbed market manipulationJaipur Investment. Furthermore, the introduction of electronic trading systems in 1994 bolstered transparency and efficiency in trading. Overall, the liberalization process transformed the Indian stock market into a robust, transparent, and globally competitive platform.Kolkata Investment

In recent years, India has surged into the top five ranks globally in terms of stock market capitalization. This ascent has been reinforced by the groundbreaking initial public offering (IPO) of the Life Insurance Corporation (LIC) of India, solidifying India's status as a key player on the global stage. Various other contributing factors include a burgeoning GDP, a demographic dividend, increasing disposable income, technological advancements, and a robust domestic investor community. India boasts a youthful population, offering a significant pool of potential new investors entering the capital market each year. Moreover, the expanding middle class and rising disposable incomes have bolstered investment activities. The accessibility of online trading platforms has further democratized investments, drawing in a broader base of investors.