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What is Share Market? Complete Beginner's Guide (Hindi)

What is share market, how it works, how to invest — complete Hindi guide Indian stock market for beginners.

Published by The Retail Trader · AUG 16, 2026 · Features

What is share market, how it works, how to invest — complete Hindi guide Indian stock market for beginners.

What Is the Share Market?

Share market (or stock market) is a place where buying and selling of shares of companies takes place. When you buy shares of a company, you become the owner of a small part of our company.

Simple definition: > Share market = Where companies sell their shares and buy log shares. You buy a share of ₹100 = part-owner of the company worth ₹100.

Real Example:
• One share of Reliance Industries is worth ~₹2,500
• You buy 1 share = ~0.00000003% owner of Reliance
• If Reliance's profit increases → share price increases → yours is ₹2,500 → ₹3,000+

How does Share Market work?

Basic Flow:
• Company → IPO → Stock Exchange → Broker → You
• └── Shares listed ←── Trading ←── You buy/sell

Step by Step:
• Company decides to sell shares (IPO)
• Shares are listed on stock exchange (NSE, BSE).
• You buy shares through broker (Zerodha, Groww)
• Price is decided by Demand/Supply
• Price goes up → profit. Go down → loss.

2 Stock Exchanges of India:
• NSE — Full Name: National Stock Exchange, Location: Mumbai, Listed Companies: 2,000+
• BSE — Full Name: Bombay Stock Exchange, Location: Mumbai, Listed Companies: 5,000+

NSE is more popular — more volume, more liquidity. Most trading takes place on NSE.

How to start share market in India?

Step 1: Demat Account Kholein

Demat account = digital locker of your shares. Cannot buy shares without demat.

Documents required:
• PAN card
• Aadhaar card
• Bank account
• Passport photo
• Signature

Where to open:
• Zerodha — Account Opening Fee: ₹200, Brokerage: ₹20/order
• Groww — Account Opening Fee: Free, Brokerage: ₹20/order
• Angel One — Account Opening Fee: Free, Brokerage: ₹20/order
• Upstox — Account Opening Fee: Free, Brokerage: ₹20/order

Step 2: Download Trading App

Zerodha Kite, Groww, Angel One — use any. All are similar.

Step 3: Make the first investment

Recommended for beginners:
• Nifty 50 ETF or Index Fund — safest starting point
• Blue-chip stocks — Reliance, TCS, HDFC Bank
• Start from small amount – ₹1,000-5,000

Step 4: Keep looking:
• Read TRT's blog (50+ articles in Hinglish)
• Try Charting (TRT SUPERCHART)
• Do paper trading (practice with virtual money)

Types of Share Market

1. Primary Market:
• What is: Market for buying new shares (IPO)
• Example: Zomato IPO, Paytm IPO
• How: Apply for IPO via broker

2. Secondary Market:
• What is: Market for buying and selling existing shares
• Example: daily trading on NSE/BSE
• How: Buy/sell from Broker app

3. Derivatives Market (F&O):
• What is: Futures and Options trading
• Example: Nifty options, Bank Nifty futures
• Risk: very high — experienced traders only

How to make money in share market?

Method 1: Capital Appreciation (by increasing price):
• Share bought at ₹100 → ₹150 made → ₹50 profit
• Timeframe: Weeks to years
• Risk: Price may also go down

Method 2: Dividend (Profit Share of Company):
• Company gives dividend from profit
• Example: ITC gives ₹6/share dividend
• Tumhare paas 100 shares → ₹600 dividend income

Method 3: Trading (Short-Term Buy/Sell):
• Intraday: Same day buy/sell
• Swing: hold 2-10 days
• Risk: Very high — 90% traders lose money

Important Indices of India

Keep these six points in mind:
• Nifty 50 — What Tracks: Top 50 NSE stocks, Stocks: 50
• Sensex — What it Tracks: Top 30 BSE stocks, Stocks: 30
• Bank Nifty — What it tracks: Top 12 banks, Stocks: 12
• Nifty IT — What it tracks: Top IT companies, Stocks: 10
• Nifty Midcap 150 — What Tracks: Mid-size companies, Stocks: 150
• India VIX — What Tracks: Market volatility, Stocks: —

Nifty 50 is the most important index of India. If Nifty is going up → the market is strong.

How much money do you need in share market?

Keep these five points in mind:
• Buying 1 share — ₹1 (penny stock) to ₹50,000+ (MRF)
• Nifty 50 ETF — ~₹200 (1 unit)
• Mutual Fund SIP — ₹500/month
• F&O Trading — ₹50,000+ (margin requirement)
• Recommended start — ₹5,000-10,000

You can start from ₹5,000. From Nifty 50 ETF or index fund.

Share Market Risks

Market Risk

Stock market goes up and down. Nifty fell 60% in 2008. Fell 40% in 2020. Recovery occurs in the long term, but can be very painful in the short term.

Company Risk

The company's business may deteriorate. Yes Bank, DHFL, IL&FS — all caused huge losses to investors.

Liquidity Risk

There are less buyers in some stocks. The price may decrease significantly at the time of selling.

Emotional Risk

You can take wrong decisions due to fear and greed. 90% of retail traders are in loss because emotions control.

Golden Rules for Beginners

Keep these eight points in mind:
• First learn, then invest — read 50+ articles of TRT
• Think long-term – keep a horizon of 5-7 years
• Diversify – don't invest everything in one stock
• Start with SIP – Mutual fund SIP is safe
• Don't trust tips – do your research
• Keep emergency fund first – 6 months expenses
• Don't borrow and invest – just invest extra money
• Control emotions – make a plan, stick to it

Share Market vs Other Investments

Keep these six points in mind:
• Returns — Share Market: 12-15% (long-term), FD: 6-7%, Gold: 8-10%, Real Estate: 8-12%
• Risk — Share Market: High, FD: Very Low, Gold: Medium, Real Estate: Medium
• Liquidity — Share Market: Instant, FD: Low, Gold: Moderate, Real Estate: Very Low
• Minimum — Share Market: ₹200, FD: ₹1,000, Gold: ₹1,000, Real Estate: ₹10 lakh+
• Tax benefit — Share Market: ELSS only, FD: ❌, Gold: ❌, Real Estate: ❌
• Effort — Share Market: High (research), FD: Zero, Gold: Low, Real Estate: High

Cheat Sheet

Keep these points in mind:
• 📌 SHARE MARKET QUICK REFERENCE
• WHAT IS IT:
• 📊 Where to buy/sell shares of companies
• 📊 NSE (National Stock Exchange) + BSE (Bombay Stock Exchange)
• 📊 Trading through Broker (Zerodha, Groww)
• HOW TO START:
• 1️⃣ Demat account kholein (Zerodha/Groww)
• 2️⃣ PAN + Aadhaar + Bank account required
• 3️⃣ Download the App
• 4️⃣ Start with Nifty 50 ETF/Index Fund
• 5️⃣You can start from ₹5,000
• HOW MONEY IS MADE:
• 💰 Capital appreciation (due to increase in price)
• 💰 Dividend (profit share of the company)
• 💰 Trading (short-term buy/sell — risky)
• GOLDEN RULES:
• ✅ First learn, then invest
• ✅ Long-term socho (5-7 years)
• ✅ Diversify (don't invest everything in one stock)
• ✅ Start with SIP
• ✅ Don't trust tips
• ✅ Do not invest by borrowing
• ✅ Control emotions
• INDICES:
• 📊 Nifty 50 — India's #1 index
• 📊 Sensex — top 30 of BSE
• 📊 Bank Nifty — Banking sector
• 📊 India VIX — Market fear gauge

What to Read Next?

Keep these five points in mind:
• What Is the Stock Market?
• How to Open a Demat Account?
• What Is a Mutual Fund?
• Nifty 50 Companies List 2026
• What Is Trading?

The Retail Trader — educational market analysis. Not investment advice.

This article is for educational purposes only. It is not a buy or sell recommendation, a claim of guaranteed returns, or advisory guidance. Exchanges, SEBI and RBI change rules, rates and procedures from time to time, so verify every figure with your broker or an official source.

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