Business Remedies | Charu Bhatia | June 29 ,2025 | From the bustling trading floors of the Bombay Stock Exchange (BSE) in the early 1900s to the lightning-fast digital trades of today, the share market has undergone a dramatic transformation over the past century. This evolution reflects not just advances in technology, but shifting economic tides, global integration, and a growing appetite among ordinary people to participate in wealth creation.
In India, the journey of the stock market began modestly. The Bombay Stock Exchange, Asia’s oldest bourse, was formally established in 1875 under a banyan tree where brokers once gathered to trade cotton shares. For decades, markets were dominated by a small group of institutional investors and wealthy families, with public participation remaining limited.
However, the landscape began to shift in the 1990s, spurred by India’s economic liberalization. The reforms of 1991 unlocked foreign investments, modernized financial systems, and fueled economic growth. The establishment of the National Stock Exchange (NSE) in 1992 introduced fully electronic trading, a radical departure from the chaotic open-outcry system. This move democratized access, slashed transaction costs, and brought unprecedented transparency to trading.
Over the years, India’s share markets have grown exponentially in size and sophistication. Participation has also surged. In 2025, India boasts more than 14 crore demat accounts, compared to fewer than 80 lakh in 2010. A new generation of young investors, empowered by apps, digital payment systems, and financial influencers on social media, has transformed market participation from niche to mainstream. According to SEBI data, millennials and Gen Z now account for over 55% of new demat accounts opened in the last two years, signaling a cultural shift towards equity investing as a key tool for wealth building.
Recent years have also witnessed significant thematic shifts in the market. Investors have flocked to sectors like technology, renewable energy, and electric vehicles, driven by global trends and government policies promoting sustainability. IPO markets have boomed, with companies from new-age sectors, like fintech, edtech, and e-commerce, attracting significant capital, albeit with occasional valuation concerns.
Foreign institutional investors (FIIs) have played a crucial role throughout this evolution. Inflows have often acted as a barometer of global confidence in India’s growth story. In 2021 and 2022, India saw record FII inflows exceeding $35 billion each year, though 2023 witnessed a cautious pullback due to global monetary tightening.
Despite challenges, analysts remain optimistic about India’s markets. A rising middle class, robust corporate earnings, and initiatives like financial inclusion and digital public infrastructure continue to expand the investor base. SEBI’s focus on tightening regulations and increasing transparency has further bolstered trust in the markets.
“Indian equity markets have matured tremendously over the past three decades,” says Rajeev Nair, a Mumbai-based market analyst. “While volatility is inevitable, the long-term story remains compelling. India’s economy is poised for growth, and markets are reflecting that optimism.”
As India eyes becoming a $5 trillion economy in the coming years, the share market is expected to play a pivotal role in channeling savings into productive enterprises, fueling both corporate growth and individual wealth creation. For investors, the journey ahead promises new opportunities, but also demands prudence and informed decision-making.
Written & Edited By:
Charu Bhatia
