indian stock market
DESCRIPTION
overview of stock marketTRANSCRIPT
STOCK MARKET
GROUP MEMBERS
Name Roll no.Trupti Lad 9Pooja Sawant 10 Ankita Shirke 11Sayali Bane 12Savio Pereira 26Girish Tripathi 27Kavita Sangle 59 Guided by- Mr. Manoj
Bhatia
What is stock?
The original capital paid into or invested in the business by its founders.
Stock market:-The market in which shares are issued
and traded either through exchanges or over-the-counter markets
MARKET PARTICIPANTS:-
Individual investorInstitutional investor-1. Mutual funds2. Banks3. Insurance companies4. Hedge funds
IMPORTANCE OF STOCK MARKET
Important source for companies
to raise money.
It provides liquidity.
Primary indicator of country’s
economic strength &
development.
COMMON STOCK
A form of corporate equity
ownership.
Carries the right to vote on
certain matters.
Uncertain return.
PREFERRED STOCK
A hybrid instrument.
Carries no voting rights.
Rated by the major credit-rating
companies.
Priority in the payment of
dividend.
BOMBAY STOCK EXCHANGE
Location Dalal Street, Mumbai
Founded 1875
Owner BSE Limited
Currency Indian Rupee(Rs)
No. of listing 5133
Market Capital 1 trillion(US $)
Index BSE Sensex
Chairman Subramaniam Ramadorai
BSE
• One of the oldest stock exchange in Asia.
• Span of over 133 years• 3rd largest in South Asia & 10th largest in
the world.• Known before as “The Native Stock &
Share Brokers Association”. • Consist of 30 largest & most actively
traded companies.
Trading Schedule
Sessions Timings
Pre-open Trading Session 09:00 - 09:15
Trading Session 09:15 - 15:30
Position Transfer Session 15:30 - 15:50
Closing Session 15:50 - 16:05
Stock Exchange Worldwide
New York Stock Exchange- USAShanghai Stock Exchange- ChinaLondon Stock Exchange- United
KingdomNational Association of Security Dealers Automated Quotations- USA• Tokyo Stock Exchange- Japan
Credit Ratings
• Depend on the company image, management quality, auditors quality, accounting accuracy.
• Ratings are not fixed. AAA Highest Safety AA High Safety A Adequate Safety BBB Moderate Safety BB In Adequate Safety B, C & D High risk and default
Credit Rating Agency's
1. CRISIL2. ICRA3. CARE4. SMERA
SENSEX
Companies part of BSE SENSEX for the purpose of index calculation:
COMPANY NAME INDUSTRY1. ACC CEMENT- MAJOR
2. BHARTI AIRTEL TELECOMMUNICATION-SERVICE
3. BHEL ENGINEERING-HEAVY
4. DLF CONSTRUCTION & CONTRACTING
5. GRASIM DIVERSIFIED
6. HDFC FINANCE-HOUSING
7. HDFC BANK BANKS-PVT SECTOR
8. HERO HONDA AUTO
9. HINDALCO ALUMINIUM
10. HUL PERSONAL CARE
11. ICICI BANK BANKS PVT SECTOR
12. INFOSYS COMPUTER -SOFTWARE
13. ITC CIGARETTES
14. JAYPARAKASH ASS CONSTRUCTION & CONTRACTING
15. LARSEN & TUBRO {L ENGINEERING-HEAVY
16. MAHINDRA & MAHIND AUTO
17. MARUTI SUZUKI AUTO
18. NTPC POWER-GENERATION/DISTRIBUTION
19. ONGC OIL DRILLING & EXPLORATION
20. RELIANCE REFINERIES
21. RELIANCE COM. TELECOMMUNICATIONS-SERVICE
22. RELIANCE INFRA. POWER-GENERATION/DISTRIBUTION
23. SBI BANKS- PUBLIC SECTOR
24. STERLITE IND. METALS-NON FERROUS
25. SUN PHARMA PHARMACEUTICALS
26. TATA MOTORS AUTO-LCVs/HCVs
27. TATA POWER POWER-GENERATION/DISTRIBUTION
28. TATA STEEL STEEL-LARGE
29. TCS COMPUTERS-SOFTWARE
30. WIPRO COMPUTERS-SOFTWARE
What do you mean by “free-float market capitalization”?
Method to calculate INDEX
Variation of market capitalization
method
FFMC= Market Capitalization ×
Free float factor
How do you find out the value of the SENSEX at a particular point?
STEP 1: Find out the FREE FLOAT MARKET
CAPITALISATION of 30 companies.
STEP 2: Add all the FREE FLOAT
MARKET CAPITALISATION of 30
companies.
STEP 3: Make all this relative to
SENSEX base.
MAJOR CRASHES SINCE 2000
May 2006
Effects of the subprime crisis in the U.S.
Participatory notes issue.
NATIONAL STOCK EXCHANGE
Location of National Stock Exchange
Type Stock Exchange
Location Mumbai, India
Co-ordinates 19⁰3’37”N 72⁰51’35”E
Founded 1992
Owner National Stock Exchange India limited
Key people Ravi Narain (MD)
Currency Indian Rupee
No. of listing 1,646
Market Capital US$985billion(dec 2011)
Indexes S&P CNX Nifty, CNX Nifty Junior, S&P CNX 500
MARKETSCurrently, NSE has the following major segment of capital
market:EQUITIES Equities Indices Mutual Funds Exchange Traded funds Initial Public Offering Security Lending and Borrowing SchemesDERIVATIVES Equity Derivatives Currency Derivatives Interest Rate Futures DEBT Retail Debt Market Wholesale Debt Market Corporate Bonds
TRADING SCHEDULE
Trading takes place on all days of the week except Saturday and Sunday.
•Session Open Close
•Pre-open session(regular) 09:00 hrs 09:08 hrs
•Pre-open session for IPO & Relist Securities
09:00 hrs 09:45 hrs
•Regular Trading Session 09:15 hrs 15:30 hrs
•Block Deal Session 09:15 hrs 09:50 hrs
•Closing Session 15:40 hrs 16:00 hrs
MILESTONEOctober 1995:- Became largest stock exchange in the
country.April 1996 :- Launch of S&P CNX NiftyMay 1998:- Launch of NSE’s Web-site: www.nse.co.in July 1998:- Launch of NSE’s Certification Program in
Financial MarketFebruary 2000:- Commencement of Internet TradingMay 2002:- wins Wharton –Infosys Business
Transformation Award. January 2007:-Lunch of NSE-CNBC TV 18media centreOctober 2010:-Launch of 15-minutes special pre-open
session
IISL
NSE also set up a index services firm known as India Index Services & Products Limited(IISL).
Joint venture between NSE and CRISIL Ltd.
Established in may 1998.To provide Indices and index
related services and products.
CERTIFICATION
NSE also conduct online examination & award certification under it’s program NCFM .
Certifications available in 32 modules, covering different factor of financial & capital market
NSE has been offering short-term course called NSE Certified Capital Market professional since August 2009.
DEMAT ACCOUNT
WHAT IS DEMAT ACCOUNT?
An dematerialisation of shares.In Demat account shares &
securities are held electronically.A process where physical records
of investments are converted into electronic records.
WHAT IS DEPOSITORY & DEPOSITORY PARTICIPANT ?
A place where stocks of investors are held in electronic form.
Two main depository in India are: 1. National securities depository limited
(NSDL)2. Central depository services limited
(CDSL) DP is an institution holding a pool of
preverified shares in electronic mode. DP is an Intermediary between
investors & depository.
PROCEDURE OF OPENING A DEMAT ACCOUNT:-
Investor approach a DP & fill up the demat request form (DRF)
Investors has to submit the proof of identity & address.
Documents needs to be verified by authorized officer of DP under his signature.
Further investor has to sign a agreement. DP must provide the investors with copy of
agreement & schedule of charges. DP will open the account & gives an account
number called as Beneficial owner identification number (BOID)
DEMAT
ADVANTAGES DISADVANTAGES
Easy & Convenient. Immediate transfer of
shares. No stamp duty
payable. Reduces paper work. Safer than paper
shares Nomination facility is
available.
Trading in securities may become uncontrolled.
Difficult for capital market regulator to keep a close watch.
Role of key market players must be supervised.
WHAT IS TRADING?
Buying and selling of securities or commodities on a short term basis, hoping to make quick profits.
Types of trading
Day trading
Short term trading
Medium term trading
Long term trading
Methods of trading
1. On the exchange floor
2. Electronically
WHAT IS IPO?
IPO stands for Initial Public Offering. It is when a company offers its shares for sale to investors, usually with the aim of getting a wide spread of shareholders so it can list on a stock exchange for the first time.
HOW TO APPLY FOR IPO FORM?
To fill an application form. These forms are available in stalls outside the
stock market, share broker etc. A good idea is to check the web site
of karvy consultants[www.karvy.com] The option is to check the sebi website[wwwsebi.gov.in]
for the prospectus of a particular ipo. Remit the amount after calculating the number of
shares applied for in the bank that is designated in the form as collecting centre for that ipo.
If you have demat a/c you can apply directly.
FACTORS BEFORE APPLYING TO AN IPO
TRACK RECORD OF THE PROMOTORS
FINANCIALSPROSPECTUSISSUE PRICE
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