Do you know about ‘Dalal Street’? Here is A to Z

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Peoples commonly gone through this term ‘Dalal Street’ while listening or indulge in share market activities. As we know that in India we have two stock exchanges first National Stock Exchange and second Bombay Stock Exchange in short NSE and BSE where daily stock trading activities took place.  So, in short, Dalal Street is the substitute term for the Indian financial establishment. BSE and NSE publishes its index of different stocks which is called Sensex for which daily ups and down are seen by us on daily basis.

Essentially when we talk about Dalal Street, we are referring to the Bombay Stock Exchange and Sensex. Interestingly there are four types of animal’s names represents the investors in stock market. They are bull, bear, stag and lame duck. 

It is necessary to understand what these animals represent in the world of stock exchange so that you can better understand about Dalal Street. A bull is an investor or a market operator who expects the market price of a share to go up by buying shares first and selling them later at a higher price. So buyers dominate in this market.  

A bear represents a type of market operator or an investor who expects the market price of a share to fall in terms of making money by selling the shares first and buying them back later at a lower price.  A bearish market denotes a weak or downward market so this is idle for sellers than buyers. While lame duck is a stock player with bad decisions for a time period so that end losing money and meet their debt obligations. 

So you can assume Dalal Street is a place of mixed participants describe before including people related with stock market, including financial institutional investors, retail investors, mutual funds, corporations, and Indian financial institutions.

It is a common assumption that all stock market operators associated with trading have a job of buying and selling of stocks but more on the stock market have other players like long and short term investors, traders, speculators etc.  

Long term investors purchase shares with the intention of holding them for more than one year while a short term investor prefers to buy shares with the intention of selling them within a year. A trader either purchases shares in the morning and sells them in the evening or vice versa while a speculator buys shares without the intention of taking delivery of the shares.

So all these processes daily takes place at Dalal Street. Everyday Street faces several expectations of investors buying and selling shares, with a wish to make as much profit as possible.