Why do people invest in Share Market...?Are people really eager to own a part of company...?
Not really. Most people participate in the Stock Market to make gains out of the rise and fall of the Share prices. And this is called Day Trading. When people feel that share prices of a company is going to rise as the company is doing good, they buy shares of that company, only to sell later when (& if) the price actually rises. So Day Trading is all about speculation. If your hunch is good, you make money; if your guesses go bad, you lose. So you should be aware of Share Market Basics before entering into that.
However, saner minds participate in the Share Market as an motive of investment. They buy shares of a company they feel might do well in long run. They study the performance, Vision, quality of incumbent management, robustness of the product/services of the company before putting in their money. They also keep in mind the overall prevailing health of the economy or particular sectors thereof before investing. They use their voting rights judiciously and enjoy whatever dividends the company doles out.
Sensex/Nifty are just aggregates of share prices of a bunch of companies. We cannot track all the shares at a time. Thus we make an Index out of a basket of shares to understand the mood of the market. Sensex and Nifty are Indexes.
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