Overview

The stock market encourages people to save by giving households money so they can invest another financial tool that fits their risk preferences and cash needs better (Agrawalla, 2006). A stock market that works well is important to the economy because it helps businesses get the money they need and shows how to run an economy well. Since 1991, when market-based economic reforms were put in place, the Indian stock market has had a bigger effect on how the country's resources are used (Shah and Thomas, 2003). In the last ten years, there have been a lot more trades on all 23 stock exchanges in the country. Since reforms were made, there have been big changes in how important different stock exchanges are in the market. People became very interested in the stock market because of this. In the past few years, it has become very important to study market indicators because the stock market is doing well and more and more people are interested in it.

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