SAROJ MUDULI-STOCK EXCHANGE
-
Upload
saroj-muduli -
Category
Documents
-
view
222 -
download
0
Transcript of SAROJ MUDULI-STOCK EXCHANGE
8/7/2019 SAROJ MUDULI-STOCK EXCHANGE
http://slidepdf.com/reader/full/saroj-muduli-stock-exchange 1/39
STOCK EXCHANGE
8/7/2019 SAROJ MUDULI-STOCK EXCHANGE
http://slidepdf.com/reader/full/saroj-muduli-stock-exchange 2/39
WHAT IS STOCK EXCHANGE
Stock exchange is that place where trading of
shares is done in terms of sale and purchase.
8/7/2019 SAROJ MUDULI-STOCK EXCHANGE
http://slidepdf.com/reader/full/saroj-muduli-stock-exchange 3/39
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.
8/7/2019 SAROJ MUDULI-STOCK EXCHANGE
http://slidepdf.com/reader/full/saroj-muduli-stock-exchange 4/39
4
21 Other Regional21 Other Regional
ExchangesExchanges
STOCK ExchangesSTOCK Exchanges
NSENSE
Structure of Indian Stock Exchanges
NationalNational
exchangesexchanges
RegionalRegional
exchangesexchanges
SEBISEBI
BSEBSE
8/7/2019 SAROJ MUDULI-STOCK EXCHANGE
http://slidepdf.com/reader/full/saroj-muduli-stock-exchange 5/39
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
8/7/2019 SAROJ MUDULI-STOCK EXCHANGE
http://slidepdf.com/reader/full/saroj-muduli-stock-exchange 6/39
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
8/7/2019 SAROJ MUDULI-STOCK EXCHANGE
http://slidepdf.com/reader/full/saroj-muduli-stock-exchange 7/39
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
8/7/2019 SAROJ MUDULI-STOCK EXCHANGE
http://slidepdf.com/reader/full/saroj-muduli-stock-exchange 8/39
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
8/7/2019 SAROJ MUDULI-STOCK EXCHANGE
http://slidepdf.com/reader/full/saroj-muduli-stock-exchange 9/39
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)
8/7/2019 SAROJ MUDULI-STOCK EXCHANGE
http://slidepdf.com/reader/full/saroj-muduli-stock-exchange 10/39
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
8/7/2019 SAROJ MUDULI-STOCK EXCHANGE
http://slidepdf.com/reader/full/saroj-muduli-stock-exchange 11/39
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
8/7/2019 SAROJ MUDULI-STOCK EXCHANGE
http://slidepdf.com/reader/full/saroj-muduli-stock-exchange 12/39
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
8/7/2019 SAROJ MUDULI-STOCK EXCHANGE
http://slidepdf.com/reader/full/saroj-muduli-stock-exchange 13/39
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
8/7/2019 SAROJ MUDULI-STOCK EXCHANGE
http://slidepdf.com/reader/full/saroj-muduli-stock-exchange 14/39
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.
8/7/2019 SAROJ MUDULI-STOCK EXCHANGE
http://slidepdf.com/reader/full/saroj-muduli-stock-exchange 15/39
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:
8/7/2019 SAROJ MUDULI-STOCK EXCHANGE
http://slidepdf.com/reader/full/saroj-muduli-stock-exchange 16/39
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.
8/7/2019 SAROJ MUDULI-STOCK EXCHANGE
http://slidepdf.com/reader/full/saroj-muduli-stock-exchange 17/39
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
8/7/2019 SAROJ MUDULI-STOCK EXCHANGE
http://slidepdf.com/reader/full/saroj-muduli-stock-exchange 18/39
BSE CHART
�
8/7/2019 SAROJ MUDULI-STOCK EXCHANGE
http://slidepdf.com/reader/full/saroj-muduli-stock-exchange 19/39
� 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
8/7/2019 SAROJ MUDULI-STOCK EXCHANGE
http://slidepdf.com/reader/full/saroj-muduli-stock-exchange 20/39
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
8/7/2019 SAROJ MUDULI-STOCK EXCHANGE
http://slidepdf.com/reader/full/saroj-muduli-stock-exchange 21/39
Tohelp protectyour privacy, PowerPointprevented thisexternalpicturefrom being automatically downloaded.To download and display thispicture,click Optionsin the MessageBar, and then click Enableexternalcontent.
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.
8/7/2019 SAROJ MUDULI-STOCK EXCHANGE
http://slidepdf.com/reader/full/saroj-muduli-stock-exchange 22/39
Tohelp protectyour privacy, PowerPointprevented thisexternalpicturefrom being automatically downloaded.To download and display thispicture,click Optionsin the MessageBar, and then click Enableexternalcontent.
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
8/7/2019 SAROJ MUDULI-STOCK EXCHANGE
http://slidepdf.com/reader/full/saroj-muduli-stock-exchange 23/39
Tohelp protectyour privacy, PowerPointprevented thisexternalpicturefrom being automatically downloaded.To download and display thispicture,click Optionsin the MessageBar, and then click Enableexternalcontent.
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
8/7/2019 SAROJ MUDULI-STOCK EXCHANGE
http://slidepdf.com/reader/full/saroj-muduli-stock-exchange 24/39
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
8/7/2019 SAROJ MUDULI-STOCK EXCHANGE
http://slidepdf.com/reader/full/saroj-muduli-stock-exchange 25/39
PROMOTERS OF NSE
� IDBI
� IFCI
� LIC
� GIC
� THE SBI CAPITAL MARKET LTD.
� SHCIL
8/7/2019 SAROJ MUDULI-STOCK EXCHANGE
http://slidepdf.com/reader/full/saroj-muduli-stock-exchange 26/39
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
8/7/2019 SAROJ MUDULI-STOCK EXCHANGE
http://slidepdf.com/reader/full/saroj-muduli-stock-exchange 27/39
Tohelp protectyour privacy, PowerPointprevented thisexternalpicturefrom being automatically downloaded.To download and display thispicture,click Optionsin the MessageBar, and then click Enableexternalcontent.
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.
8/7/2019 SAROJ MUDULI-STOCK EXCHANGE
http://slidepdf.com/reader/full/saroj-muduli-stock-exchange 28/39
Tohelp protectyour privacy, PowerPointprevented thisexternalpicturefrom being automatically downloaded.To download and display thispicture,click Optionsin the MessageBar, and then click Enableexternalcontent.
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
8/7/2019 SAROJ MUDULI-STOCK EXCHANGE
http://slidepdf.com/reader/full/saroj-muduli-stock-exchange 29/39
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.
8/7/2019 SAROJ MUDULI-STOCK EXCHANGE
http://slidepdf.com/reader/full/saroj-muduli-stock-exchange 30/39
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
8/7/2019 SAROJ MUDULI-STOCK EXCHANGE
http://slidepdf.com/reader/full/saroj-muduli-stock-exchange 31/39
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
8/7/2019 SAROJ MUDULI-STOCK EXCHANGE
http://slidepdf.com/reader/full/saroj-muduli-stock-exchange 32/39
FROM THE COMPANY POINT OF VIEW
� 1.A company whose shares quoted on stock
exchange they enjoy better reputation and credit.
8/7/2019 SAROJ MUDULI-STOCK EXCHANGE
http://slidepdf.com/reader/full/saroj-muduli-stock-exchange 33/39
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.
8/7/2019 SAROJ MUDULI-STOCK EXCHANGE
http://slidepdf.com/reader/full/saroj-muduli-stock-exchange 34/39
ROLE PLAYER
� EXTERNAL:----
� 1.SHAREHOLDER
� 2.DEBENTURE HOLDER
8/7/2019 SAROJ MUDULI-STOCK EXCHANGE
http://slidepdf.com/reader/full/saroj-muduli-stock-exchange 35/39
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.
8/7/2019 SAROJ MUDULI-STOCK EXCHANGE
http://slidepdf.com/reader/full/saroj-muduli-stock-exchange 36/39
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
8/7/2019 SAROJ MUDULI-STOCK EXCHANGE
http://slidepdf.com/reader/full/saroj-muduli-stock-exchange 37/39
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
8/7/2019 SAROJ MUDULI-STOCK EXCHANGE
http://slidepdf.com/reader/full/saroj-muduli-stock-exchange 38/39
CREDIT RATING AGENCY IN INDIA
� 1.CRISIL
� 2.ICRA
� 3.CARE� 4.DPCR