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Transcript of Alok MD20nov
8/9/2019 Alok MD20nov
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7/2/2010 (c) CHURIWALA SECURITIESPVT. LTD.
1
Market DynamicsMarket Dynamics
Alok ChuriwalaAlok Churiwala ² ²
CHURIWALA SECURITIES.CHURIWALA SECURITIES.
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2
Understanding MarketsUnderstanding Markets The PlayersThe Players
InformationInformation
VolatalityVolatality
Behavioural EconomicsBehavioural Economics
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3
The PlayersThe Players
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Market ParticipantsMarket Participants Institutional Investor (FII/FI)Institutional Investor (FII/FI)
Mutual FundsMutual Funds
CorporateCorporate
Retail Investors (HNI·s & Small)Retail Investors (HNI·s & Small)
TradersTraders Jobbers/ ScalpersJobbers/ Scalpers
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Market Participants«Market Participants« SpeculatorsSpeculators
ArbitrageursArbitrageurs
OperatorsOperators
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ObjectivesObjectivesFI/FII·sFI/FII·s Long termLong term
investmentsinvestments
Mutual FundsMutual Funds Long TermLong Term
investmentsinvestments
CorporateCorporate Wealth CreationWealth Creation
Protecting stakeProtecting stake
InvestorsInvestors SavingsSavings
TradersTraders Business ActivityBusiness Activity
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«..contd«..contdJobbers/ScalpersJobbers/Scalpers Create MarketCreate Market
Narrow spreadsNarrow spreads
SpeculatorsSpeculators Gambling instinctsGambling instincts
ArbitrageursArbitrageurs Reduce priceReduce price
differencedifference
OperatorsOperators Create interest inCreate interest ina scripa scrip
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InformationInformation
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InformationInformation Price SensitivePrice Sensitive
Advantage to early recipientAdvantage to early recipient
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SourcesSources Company ManagementsCompany Managements
Banks/ FI·sBanks/ FI·s
Research Outfits/ BrokeragesResearch Outfits/ Brokerages
MediaMedia-- Print / TVPrint / TV
Credit Rating AgenciesCredit Rating Agencies
RegulatorsRegulators
ExchangesExchanges
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Insider TradingInsider Trading Dealing on basis of unpublishedDealing on basis of unpublished
price sensitive informationprice sensitive information
Either on own a/c or anyone elseEither on own a/c or anyone else
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12
VolatilityVolatility
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Market VolatilityMarket Volatility Human ElementHuman Element
No two people think alikeNo two people think alike
Different PerceptionsDifferent Perceptions
Not the same level of Not the same level of InformationInformation
Too much volatalityToo much volatalityundesiarableundesiarable
Curbed by imposing CircuitsCurbed by imposing Circuits
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Floating StockFloating Stock Is that part of the public issueIs that part of the public issue
which is available to the publicwhich is available to the public
Shareholding Pattern (example)Shareholding Pattern (example)Promoters/Directors 51%Promoters/Directors 51%
Employees 4%Employees 4%
FI/ Mf·s 7%FI/ Mf·s 7%
FII 8%FII 8%Bodies Corporate 16%Bodies Corporate 16%
Public 14%Public 14%
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Market CapitalisationMarket CapitalisationNo. of shares issued * Mkt priceNo. of shares issued * Mkt price
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Listing AgreementListing Agreement Enables trading on exchangesEnables trading on exchanges
Binds companies to discloseBinds companies to disclose
material events.material events.
Prescribes formatsPrescribes formats
Ensures timely disclosuresEnsures timely disclosures
Safeguards general publicSafeguards general public
interestinterest
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Behavioural EconomicsBehavioural Economics
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Behavioural EconomicsBehavioural Economics Loss AversionLoss Aversion
Sunk Cost FallacySunk Cost Fallacy
DecidophobiaDecidophobia
Endowment Effect.Endowment Effect.
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ConclusionConclusion Understanding markets is notUnderstanding markets is not
only a science but also an artonly a science but also an art
TIPTIP
It requires patience & disciplineIt requires patience & discipline
to make money in the stockto make money in the stock
markets.markets.
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THANK YOU!THANK YOU!