SAROJ MUDULI-STOCK EXCHANGE

8/7/2019 SAROJ MUDULI-STOCK EXCHANGE

http://slidepdf.com/reader/full/saroj-muduli-stock-exchange 1/39

STOCK EXCHANGE



WHAT IS STOCK EXCHANGE

Stock exchange is that place where trading of

shares is done in terms of sale and purchase.



INTRODUCTION :

� There are 23 stock exchanges in theIndia. Mumbai's (earlier known asBombay), Bombay Stock Exchange isthe largest, with over 6,000 stocks listed.The BSE accounts for over two thirds of

the total trading volume in the country.Established in 1875, the exchange isalso the oldest in Asia. Among thetwenty-two Stock Exchanges recognisedby the Government of India under theSecurities Contracts (Regulation) Act,1956, it was the first one to berecognised and it is the only one that hadthe privilege of getting permanentrecognition ab-initio.



4

21 Other Regional21 Other Regional

ExchangesExchanges

STOCK ExchangesSTOCK Exchanges

NSENSE

Structure of Indian Stock Exchanges

NationalNational

exchangesexchanges

RegionalRegional

exchangesexchanges

SEBISEBI

BSEBSE



REGULATORY BODY OF INDIAN STOCK EXCHANGE

Type:Statutory BoardLocation:Mumbai ,India

Founded:1992

Key people:C.B Bhave(Chairman)

Employees:525

Web:www.sebi.gov.in



WHAT SEBI PERFORMS

Regulatory Operates the trading of stock

Exchange

Registration of Broker,

transfer agents, merchant bank etc.

Abolition of internal trading

Auditing of Stock exchange

Registration of credit rating

Agency

DEVELOPMENT

Research & Development

Publighing of

Information

Educates investors

Promoting Self operating

organization

Control over fraud



Name of Indian stock exchange:

� 1.Bombay stock exchange

� 2.national stock exchange(Mumbai)

� 3.Banglore stock exchange

� 4.Utter pradesh stock exchange(kanpur)� 5.Magadh stock exchange(Patna)

� 6.Ahmedabad stock exchange

� 7.vadodara stock exchange(Baroda)

� 8.Bhubaneswar stock exchange� 9.Calcutta stock exchange(kolkata)

� 10.madras stock exchange



Cont««.

� 11.Cochin stock exchange

� 12.coimbatore stock exchange

� 13.Gauhati stock exchange

� 14.Hydrabad stock exchange� 15.Madhya pradesh stock exchange(indore)

� 16.Jaipur stock exchange

� 17.Ludhina stock exchange

� 18.Mangalore stock exchange� 19.Pune stock exchange

� 20.saurashtrakutch stock exchange



BOMBAY STOCK EXCHANGEType Stock Exchange

Location Mumbai, India

Coordinates

18°5547N

72°5001E /

18.929681°N

72.833589°E /

18.929681; 72.833589

Founded 1875

OwnerBombay Stock Exchange

Limited

Key peopleMadhu Kannan (CEO &

MD)

Currency

No. of listings 6.123

MarketCapUS$1.28 trillion (Feb,

2010)

Volume US$980 billion (2006)



HOURS OF OPERATION

� Session Timing

� Beginning of the Day Session 8:00 - 9:00

� Trading Session 9:00 - 15:30

� Position Transfer Session 15:30 - 15:50

� Closing Session 15:50 - 16:05

� Option Exercise Session 16:05 - 16:35

� Margin Session 16:35 - 16:50

� Query Session 16:50 - 17:35

� End of Day Session 17:30



Cont««.� Bombay stock exchange : it has 30 companies sripted.

Housing related

1. Associated Cement Companies Ltd2. Gujarat Ambuja Cements Ltd

Transport Equipments

3. Bajaj Auto Ltd

4. Hero Honda Motors Ltd

5. Maruti Udyog Ltd

6. Tata Motors Ltd.Capital Goods

7. Bharat Heavy Electricals Ltd

8. Larsen & Toubro Limited

Telecom

9. Bharti Airtel Ltd

10. Reliance Communications LimitedHealthcare

11. Cipla Ltd

12. Dr Reddy's Laboratories Ltd

13. Ranbaxy Laboratories Ltd

Diversified

14

. Grasim Industries LtdFinance



CONT««� 16. HDFC Bank Ltd

17. ICICI Bank Ltd18. State Bank of India

� Metal,Metal Products & Mining19. Hindalco Industries Ltd20. Tata Steel LtdFMCG21. Hindustan Lever Ltd22. ITC LtdInformationTechnology23. Infosys Technologies Ltd24. Satyam Computer Services Ltd25. Tata Consultancy Services Limited26.Wipro LtdPower27. NTPC Ltd28. Reliance Energy LtdOil & Gas29. ONGC Ltd30. Reliance Industries Ltd



CRITERA FOR SELECTING THE 30 COMPANIES FOR

CALCULATING INDEX OF BSE

� Listing History: The company should havelisting history on BSE for at least one year

� Track Record: Company should have good track

record

� Market Capitalizition :Company should be oneamong 100 market capitalizition of BSE & each

company should have more than 0.5 of total

capitalizition of BSE index

� Frequence of trading: Company stock should be

traded on each & every trading day for the last one year.

� Industrial representation:Company should be a Leader

in the industry it represents



sensex

� Sensex stands for ³Sensitive Index´ ,It represents

BSE (Bombay Stock exchange)

� Sensex indicates all major companies of BSE� Sensex is calculatted using share prices of 30

major companies ,which are listed in BSE .

� If the Sensex goes up ,it means that share valuaes

of the major companies have gone up& viceversa.



Market Capitalization

� Market capitalization is the total worth of alloutstanding (issued) share of the company .it

represents the total worth of a company

Free floatMarket capitalsition

Free float concept is an index construction

methodology ,which makes use of free float

shares in the market. free float market

capitalization is the total worth of all shares of acompany ,which are available for trading in the

open market .These shares are called free float

shares & are available for trading by any one.

EXP:



Calculation of sensex

� Sensex calculation is practiced SINCE 1986

� Initially it had been calculated using total market

capitalization method but the methodology

changed to free float market capitalization sincefrom 2003.Hence these days sensex is calculated

using free float market capitalization of 30 major

BSE listed companies & by using base Value

100(1978-79)� Sensex is calculated for every 15 seconds.



THE TOP TEN SINGLE DAY FALLS

OF THE SENSEX HAS :1. Jan 21, 2008 --- 1,408.35 points

2. Jan 22, 2008 --- 857 points

3. Feb 11, 2008 --- 833.98 points

4. May 18, 2006 --- 826 points5. Dec 17, 2007 --- 769.48 points

6. Oct 17, 2007 --- 717.43 points

7. Jan 18, 2007 --- 687.82 points

8. Nov 21, 2007 --- 678.18 points9. Aug 16, 2007 --- 642.70 points

10. Apr 2, 2007 --- 616.73 points



BSE CHART

�



� Index Value:

� 17,349.07 Trade Time:

� 3:58PM IST

� Change:

� 385.61 (2.17%)

� Prev Close:� 17,734.68

� Open:

� 17,503.04

� Day's Range:� 17,309.47 - 17,526.80



Tohelp protectyour privacy, PowerPointprevented thisexternalpicturefrom being automatically downloaded.To download and display thispicture,click Optionsin the MessageBar, and then click Enableexternalcontent.

NSE� The National Stock Exchange

(NSE), located in Bombay, is India's

first debt market. It was set up in

1993 to encourage stock exchange

reform through systemmodernization and competition. It

opened for trading in mid-1994. It

was recently accorded recognition

as a stock exchange by the

Department of Company Affairs.

The instruments traded are,

treasury bills, government security

and bonds issued by public sector

companies




CONT«««.

� The Organisation: The NationalStock Exchange of India Limited hasgenesis in the report of the HighPowered Study Group onEstablishment of New StockExchanges, which recommendedpromotion of a National StockExchange by financial institutions(FIs) to provide access to investorsfrom all across the country on anequal footing.




CONT«««

� Based on the recommendations, NSE was promoted by

leading Financial Institutions at the behest of the Government

of India and was incorporated in November 1992 as a tax-

paying company unlike other stock exchanges in the country




Cont««««««««..ss

� NSE Group:

1. India Index Services & Products Ltd. (IISL)

2. National Securities Clearing Corporation Ltd.

(NSCCL)3. NSE.IT Ltd.

4. National Securities Depository Ltd. (NSDL)

5. DotEx International Limited



NSE� Type: Stock Exchange

�L

ocation: Mumbai, India� Coordinates :19°337N 72°5135E / 19.06028°N

72.85972°E / 19.06028; 72.85972

� Founded: 1992

� Owner:

National Stock Exchange of India Limited

� Key people:Mr.Ravi Narain - MD

� Currency

� No. of listings :1810

� MarketCap: 4,701,923 crore (US$ 1,020.32 billion)(2009 August)

� Indexes:S&P CNX Nifty

CNX Nifty Junior

S&P CNX 500

� Website: www.nse-india.com



PROMOTERS OF NSE

� IDBI

� IFCI

� LIC

� GIC

� THE SBI CAPITAL MARKET LTD.

� SHCIL



NIFTY

� Nifty indicates NSE .It is the leading index

for large companies the National Stock

Exchange of india.It consists of 50companies representing 24 sectors of the

economy.Nifty represents approxmately

47% of the traded value of all stocks on the

National Stock exchange . It is calculated

using base year 1995 & base index value

1000

� Calculation of Nifty




SPECULATION :

� Definition : it involves the buying,holding,selling,short-

term selling

ofstocks,bonds.commodities,currencies,collectibles or

any valuable financial instrument to profit fromfluctuations in its price as opposed to buying it for use or

for income via method like dividends or interest.




Kinds of speculation� Bull Market (Tejiwala): In case of that they purchase the

shares at current prices to sell at a higher price in the near

future and makes a profit if his expectations come true.he

is also called a long buyer.

Bear Market (Mandiwala) : He sells security in the hope that

he will be able to buy them back at lesser price.It is also

called ³short selling´.

Securities

prices



Cont««««««

� Lame duck : When a bear has made contracts to sell

securities,find it difficult to meet his commitment due to

non-availability of security,,they always struggling..

� Stag : He is that type of speculator who applies for a largenumber of a shares in a new issue with the intention of

selling them at a premium.He is bullish and very cautious.



How trading share in stock Exchange

Compulsory Have to open the following 3

a/cs

BANK A/C

DE-MAT A/C

TRADING A/C



BENEFITS OF STOCK EXCHANGE

� FROM THE POINT OF VIEW OF COMMUNITY:

� 1.It assist the economis development by providing a bodyof interested investors.

� 3.It encourages capital formation



FROM THE COMPANY POINT OF VIEW

� 1.A company whose shares quoted on stock

exchange they enjoy better reputation and credit.



FROM THE INVESTORS POINT OF VIEW

� 1.Liquidity of the investment is increased

� 2.The securities dealt on a stock exchange are good

collateral security for loans.



ROLE PLAYER

� EXTERNAL:----

� 1.SHAREHOLDER

� 2.DEBENTURE HOLDER



INTERNAL PLAYERS

� The members of the stock exchange can bedivided into two parts:

� A.Broker: He is a commission agent who

transacts business in securities on behalf of non-members.They may have number of sub-brokersto canvass and secure business for them.

� B.Jobber: He is an independent dealer

securities.He purchase and sells securities in hisown name. He is not allowed to deal with non-members directly.He works for profit.



CAUSES OF PRICE FLUCTUATION

� 1.DAMAND AND SUPPLY

� 2.BANK RATE

� 3.SPECULATIVE PRESSURE� 4.ACTIONS OF UNDER WRITERS AND

OTHER FINANCIAL INSTITUTIONS

� 5.CHANGE IN COMPANY¶S BOARD OF

DIRECTORS

� 6.FINANCIAL POSITION OF THE COMPANY



HOW RATING IS GIVEN TO THE COMPANY?

� Basically rating is given after see the company'image,management quality,assets quality,auditorsquality,accounting accuracy.Rating is not fixed, it may bechange. The rating grades are:

� AAA: HIGHEST SAFTY

� AA: HIGH SAFTY

� A: ADEQUATE SAFTY

� BBB: MODERATE SAFTY

� BB: IN ADEQUATE SAFTY

� BC&D: HIGH RISK AND DEFAULT



CREDIT RATING AGENCY IN INDIA

� 1.CRISIL

� 2.ICRA

� 3.CARE� 4.DPCR



conclusion

� THE STOCK EXCHANGE IS

CONSIDERED TO BE THE

BAROMETER OF ECONOMICACTIVITY.

SAROJ MUDULI-STOCK EXCHANGE

Documents