I think the markets are a sum of valuations,sentiment,liquidity, economy , economic policies & so many other factors.
All these factors drive the markets.Most of the times in short term the markets are driven by liquidity and sentiments however in the long term the markets are driven by valuations, economy etc.
Given below are the various types of markets:
http://www.e-articles.info/e/a/title/Types-of-Financial-Markets/
According to investopedia a stock market is the market in which shares are issued and traded either through exchanges or over-the-counter markets. Also known as the equity market, it is one of the most vital areas of a market economy as it provides companies with access to capital and investors with a slice of ownership in the company and the potential of gains based on the company's future performance. This market can be split into two main sections: the primary and secondary market. The primary market is where new issues are first offered, with any subsequent trading going on in the secondary market.
All about stock markets @http://en.wikipedia.org/wiki/Stock_market#History
Size of the markets:Analysts at Merrill Lynch estimate that equity markets in Brazil, Russia, India and China represent only 4 percent of world market capitalisation compared with 44 percent for the U.S. equity market alone.
Indian markets have come a long way in the last 5 years so as the Indian economy. Dalal street has taken the place of Walstreet and its not the NYSE , its the NSE which is hot now.
Just to provide some statistics:
Sensex Journey from 1k to 18k:
1,000 pts — July 25, 1990
2,000 pts — January 3, 1992
3,000 pts — February 29, 1992
4,000 pts — March 30, 1992
5,000 pts — October 8, 1999
6,000 pts — February 11, 2000
7,000 pts — June 20, 2005
8,000 pts — September 8, 2005
9,000 pts — November 28, 2005
10,000 pts — February 6, 2006
11,000 pts — March 21, 2006
12,000 pts — April 20, 2006
13,000 pts — October 30, 2006
14,000 pts — December 5, 2006
15,000 pts — July 6, 2007
16,000 pts — September 19, 2007
17,000 pts — September 26,2007
18,000 pts — October 9, 2007
India is long term growth story and one of the Strong economies in asia. The amount of of FII money coming into the Indian markets tell us the fact that this is India unleashed and even the world believes in India growth story.Its time for us to analyse and recognise this performance and work towards strengthening the India growth story.
Chak De India !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
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