When a company needs very large capital they decide to ask public to invest in them. Hence the companies go for initial public officering. IPO is a primary market where people can buy company’s stocks. Since people cannot cancel their holding or demand dividends, they tend to exchange the stocks for a reasonable price. Hence stock markets acts as a platform for buyers and sellers to meet and trade stocks.There are 2 major stock markets in India. NSE and BSE. NIFTY and SENSEX are the two indices. NIFTY is the performance of top 50 companies across different sectors. SENSEX is the average performance of top 30 companies. When NIFTY started, it started with 1000 points and SENSEX started with 3000 points. Hence there is always a 3X difference between SENSEX and NIFTY>