How to Trade Indian Stock Market?

Buy directly on the Indian Stock Exchange. This option only applies to Indian citizens living in India. If you're an American citizen, this isn't an option for you, even if reside in India. If you're an Indian citizen, you can buy and sell stocks through Indian financial institutions, as you can in America, by placing orders and waiting for executions.
Register a Portfolio Investment Scheme. Available through banks that are authorized to trade on the Indian Stock Exchange, Portfolio Investment Schemes (PINS) are required for non-resident Indian citizens to buy and sell on the Indian Stock Exchange. The PINS option is not available to U.S. citizens.
Place trades through the bank holding your PINS. As a non-resident Indian investor, you can give buy and sell orders to the bank holding your PINS much as you would buy and sell a stock on an American exchange. The bank will execute the order for you and provide you with a confirmation.
Buy American Depositary Receipts (ADRs) on an American stock exchange. This is the most accessible way for American citizens to buy Indian stocks. ADRs are foreign securities that have been packaged to trade on American exchanges in an almost identical fashion to American stocks. Examples of Indian ADRs trading on American exchanges are Satyam Computer Services and Infosys Technologies, trading under symbols SAY and INFY, respectively.
Buy Indian mutual funds. While not directly buying and selling on the Indian stock exchange, you can get access to a diversified portfolio of Indian stocks by purchasing a mutual fund dedicated to Indian securities. The India Fund, for example, trades as a closed-end mutual fund on the New York Stock Exchange under the symbol IFN.