Post on 22-Nov-2014
description
Tarjan K Nonia
Northern Operating Services Pvt. LtdNAM Performance
An overview on World Indices and Calculation
2 Presentation on Northern Trust Risk Management
Agenda
What is Stock Market?
Introduction of some popular indices of the world
Eligibility criteria for index
What is Decoupling ?
How to calculate Index?
What is Diversification?
What is Beta ?
3 Presentation on Northern Trust Risk Management
Continue….
What is Stock Market?
Introduction of some popular indices of the world.
Eligibility criteria for index
What is Decoupling ?
How to calculate Index?
What is Diversification?
What is Beta ?
4 Presentation on Northern Trust Risk Management
What is Stock Market?
What is Stock Market?
5 Presentation on Northern Trust Risk Management
Continue….
What is Stock Market?
Introduction of some popular indices of the world
Eligibility criteria for index
What is Decoupling ?
How to calculate Index?
What is Diversification?
What is Beta ?
6 Presentation on Northern Trust Risk Management
Indices
Introduction of some popular indices of the world
7 Presentation on Northern Trust Risk Management
Continue….
What is Stock Market?
Introduction of some popular indices of the world.
Eligibility criteria for index
What is Decoupling ?
How to calculate Index?
What is Diversification?
What is Beta ?
8 Presentation on Northern Trust Risk Management
Eligibility Criteria
Eligibility criteria for index
B. Qualitative Criteria
A. Quantitative Criteria
9 Presentation on Northern Trust Risk Management
Continue….
What is Stock Market?
Introduction of some popular indices of the world.
Eligibility criteria for index
What is Decoupling ?
How to calculate Index?
What is Diversification?
What is Beta ?
10 Presentation on Northern Trust Risk Management
Decoupling
What is Decoupling?
11 Presentation on Northern Trust Risk Management
Continue….
What is Stock Market?
Introduction of some popular indices of the world.
Eligibility criteria for index
What is Decoupling ?
How to calculate Index?
What is Diversification?
What is Beta ?
12 Presentation on Northern Trust Risk Management
Index Calculation
Free Float Market Capitalization Method
13 Presentation on Northern Trust Risk Management
Continue….
What is Stock Market?
Introduction of some popular indices of the world.
Eligibility criteria for index
What is Decoupling ?
How to calculate Index?
What is Diversification?
What is Beta ?
14 Presentation on Northern Trust Risk Management
Diversification
Portfolio
Automobile Pharmaceutical IT & ITES Telecommunication
Lupin Cipla
Example:
15 Presentation on Northern Trust Risk Management
Continue
What is Stock Market?
Introduction of some popular indices of the world.
Eligibility criteria for index
What is Decoupling ?
How to calculate Index?
What is Diversification?
What is Beta ?
16 Presentation on Northern Trust Risk Management
Beta
Beta
17 Presentation on Northern Trust Risk Management
Continue
What is Stock Market?
Introduction of some popular indices of the world.
Eligibility criteria for index
What is Decoupling ?
How to calculate Index?
What is Diversification?
What is Beta ?
18 Presentation on Northern Trust Risk Management
Thank You
The business schools reward difficult complex behavior more than simple behavior, but simple
behavior is more effective.
Warren Buffett
Thank You
19 Presentation on Northern Trust Risk Management
Qualification Criteria :
The general guidelines for selection of constituent scrips in S&P BSE SENSEX® are as follows.
A. Quantitative Criteria :
Market Capitalization : The scrip should figure in the Top 100 companies listed by full market capitalization. The weight of each S&P BSE SENSEX® scrip based on free-float should be at least 0.5% of the Index. (Market Capitalization would be averaged for last six months)
Trading Frequency : The scrip should have been traded on each and every trading day for the last one year. Exception can be made for extreme reasons like scrip suspension etc.
20 Presentation on Northern Trust Risk Management
Qualification Criteria :
Average Daily Trades : The scrip should be among the Top 150 companies listed by average number of trades per day for the last one year.
Average Daily Turnover : The scrip should be among the Top 150 companies listed by average value of shares traded per day for the last one year.
Industry Representation : The only difference between SCM and TCM is that SCM does not have the rights to clear the trades of other members he can only clear his trades, whereas TCM can clear the trades of any other member
Listed History : The scrip should have a listing history of at least one year on BSE.
B. Qualitative Criteria :
Track Record : In the opinion of the Committee, the company should have an acceptable track record.
21 Presentation on Northern Trust Risk Management