Equity Market

The equity market is a financial market where companies raise capital by issuing equity shares and investors buy, sell, and trade ownership stakes in listed businesses through stock exchanges such as NSE and BSE. It represents the primary platform for price discovery of corporate value, driven by factors such as earnings growth, macroeconomic conditions, interest rates, and investor sentiment. The equity market operates through two segments: the primary market, where companies issue new shares via initial public offerings (IPOs) or follow-on public offerings (FPOs), and the secondary market, where existing shares are traded among investors without direct involvement of the issuing company. Investors in the equity market earn returns through capital appreciation and dividends, while also bearing market risk due to price volatility. Institutional participants such as mutual funds, insurance companies, foreign portfolio investors (FPIs), and retail investors collectively influence market liquidity and trends. Regulatory oversight by SEBI ensures transparency, investor protection, and fair trading practices, while settlement and custody of shares are handled electronically through depositories like NSDL and CDSL.