My Blog

The Role of Technology and Innovation in Driving Stock Market Performance

If you were to glance around, it would be impossible to ignore how important technology is to modern life. Technology has become increasingly important in all aspects of life, including shopping, travelling, paying bills, learning, and many others.

Over the years, technology’s reach has increased to the point where even aspects like investing and the stock market are starting to feel its effects. Technology has revolutionized the way that investment is done, and for good reason.

The Bygone Face of the Indian Stock Market

The Indian stock market used to be all about hand gestures and having a powerful voice to communicate information while buying and selling shares.

An indication of a sale was a palm facing outward, a buyer a palm facing inward, and a thumbs-up indicated a person had a good number of shares to trade. He could tell he had 20 or 200 shares to trade by flashing a specific victory sign in the trading ring. In order to get the attention of other traders, the trader had to yell constantly during the trading session. He or she also had to physically be present in the trading ring.

Role of Technology in Stock Market: From Floors to Computer Systems

Indian capital markets are currently among the most technologically sophisticated and secure. This implies that if you purchase securities today, they will be deposited to your Demat account the next day. Additionally, if you sold shares, the money would be credited to your account within a day. The more developed markets have not yet achieved this technical feat.

Today, trading and investing are fundamentally based on technology. Orders and transfers are handled entirely electronically with the aid of technology. You would notice significant changes that resulted from the advent of the technology if you looked back at the historical context of the stock market. The two largest stock exchanges in India, NSE and BSE, are completely powered by electronic technology.

Artificial Intelligence

Due to AI’s propensity to produce more accurate predictions and research than a human, investment decision-making abilities are likely to improve. It is beneficial to avoid making poor investing decisions and to keep emotional bias in check. When you include other factors, like as the speed of cognition, AI has had a significant impact on the stock market over time. Top financial platforms and advisors are increasingly relying on AI to provide them a competitive edge.


Nowadays, thanks to technological advancements and smartphones, investing is as simple and secure as online shopping. You may easily browse the available investment options, order what you like, view your portfolio with a single tap from your phone, and make changes as needed right away. That is a significant improvement over the early days when selling and buying orders were shouted from the desk while the investment portfolio was regularly checked manually.

The use of mobile apps is what we’re talking about here. The trading process is now seamless thanks to the use of mobile applications. Among the advantages of trading applications are:

  • The experience is now hassle-free
  • It is more practical and reachable
  • gives you more knowledge about your finances
  • eliminates the need for a middleman
  • It gives you the convenience of trading right at your fingertips
  • improves your stock understanding capabilities

The Role of Algorithms

The algorithm is essential to contemporary stock trading, much like AI. Because of this, several algorithmic trading and investing modules have been created over time. To help investors make better and more informed decisions, algorithms evaluate stock market activity and spot potential liquid possibilities. To do this, the computer is given a predetermined set of instructions, and it subsequently places the orders on the client’s and investors’ behalf. It helps to reduce the chance of human error while constantly making quick and accurate selections.

Blockchain in Trading

Blockchain technology is being embraced by stock exchanges all around the world to enable quicker and more secure transactions. It offers enormous promise for risk management and secure trading. Many market-regulating bodies are open to integrating blockchain technology into their infrastructure. A dramatic change of the stock market will result from the usage of blockchain, which will offer strong security measures, increased liquidity, cheaper transaction costs, automated surveillance, and much more.

Monitoring Real-time Stock Performance

It is now simple to buy and sell stocks thanks to the usage of sophisticated apps and advance computers. Additionally, it makes showing them very simple. Because of this, brokers or investors can quickly obtain information about a stock, including its share price. Additionally, you can obtain reliable information. Before you invest your hard-earned money in a particular firm, you may simply learn a lot of information about that organization.

Technology has also decreased the likelihood of human mistake in business interactions. This is due to the fact that modern computers handle the majority of transactions. Researching a company’s development, selecting the best investment, and closing a deal if you believe it is at high risk are all simple processes.

Technology for Stock Market: A Boon or Bane?

Technology has benefited the stock market in a number of ways, including the ability to invest on the move with smartphones, employ robot advisors for the finest investment advice, use algorithms for trading, and conduct massive amounts of data.

However, there is far less human connection, which has a big impact on the investment variables. Your smartphone and personal finance applications may also be compromised due to issues including hacking and privacy problems, putting your data and financial security at danger. In some situations, customized services and tailored advice are absolutely necessary, thus robot advisers may not be enough. This demonstrates the other side of technology in the stock market.

When all the information is taken into account, technology in the stock market has more advantages than disadvantages. The way the stock market operates and is viewed is altered and improved. And this technological development will only continue to advance.

10 Responses

  1. Rightly mentioned about the transformation of traditional way of stock trading (basically asking broker to buy and sell scripts) to the easy way of mobile trading. Really it is a amazing change in the path of involving more youngsters into the community and do a wealth creators making India strong globally. As mentioned this is start of the journey and more development is on the way through AI and Algorithms. This blog will help to understand stock market in a broader way and attract many new comers into the way. Thanks for the nice part of the explanations about technology on the way back towards automated trading for the future journey.


  3. This Blog explained in a extremely good way about the Bygone Face of the Indian Stock Market vs Role of Technology in Stock Market. By the help of technology, we get real time data and buy and sell just with in a second. Stock market is the best place to get the advantage of technology because here has more advantage without disadvantage.

  4. Hello ,

    Technology benefits are huge, cant say in small paragraph everywhere we using technology now days, everything available to ur door step through app and technology within one click… its big thing, our country became digital India , As a lady we can also do a share market because of technology within one click because before it was manual we cant go there and buy n sell stocks,,, so its became so easy for everyone… But we lost communication between people, more hacks are going on, fraud and sometimes we will not feel safe trade though some brokers … because we don’t know how people are ..


  5. Technology has significantly impacted the stock market industry. In the past, the Indian stock market was conducted through physical trading, but today, it is done through electronic systems.
    Technology has improved the accuracy and efficiency of investment decision-making by using new technologies like artificial intelligence (AI) and algorithms.
    Smartphones and mobile applications have made investing more convenient and accessible from anywhere.
    Blockchain technology is also used by stock exchanges for secure transactions.
    However, downside of technology is the lack of human interaction and the potential for data breaches and privacy concerns.

    Overall, technology has brought many benefits to the stock market industry and will continue to advance and transform it.

Leave a Reply

Your email address will not be published. Required fields are marked *