7/31/2019 18360477 Indian Stock Market
1/24
Indian Stock Market
Market of Hope, Discipline & Greed
7/31/2019 18360477 Indian Stock Market
2/24
What is Stock ?
Plain and simple, stock is a share in the
ownership of a company. Stock represents aclaim on the company's assets andearnings.
As you acquire more stock, yourownership stake in the company becomes
greater.
Whether you say share, equity, or stock, itall means the same thing.
7/31/2019 18360477 Indian Stock Market
3/24
Classification of stocks
Stocks are classified as1. Common Stock:- Common shares represent
ownership in a company and a claim(dividends) on a portion of profits. Investors
get one vote per share to elect the boardmembers, who oversee the major decisionsmade by management
2. Preferential Stocks:- Preferred stock representssome degree of ownership in a company butusually doesn't come with the same votingrights.
7/31/2019 18360477 Indian Stock Market
4/24
What is Stock Market ?
A stock market is a market for thetrading of publicly held company stock and
associated financial instruments (includingstock options, convertibles and stock indexfutures).
7/31/2019 18360477 Indian Stock Market
5/24
What is Indian Stock Exchange ?
Formal organizations, approved andregulated by the Securities and Exchange
Board of India (SEBI), that are made upof members who use the facilities toexchange certain common stocks.
7/31/2019 18360477 Indian Stock Market
6/24
INDIAN STOCK EXCHANGES
Two National Level Exchanges are
1. National Stock Exchange (NSE)
2. Bombay Stock Exchange (BSE)
Total 22 Exchanges are there in IndiaNational and Regional level, allexchanges conducts 100% computerizedtrading.
7/31/2019 18360477 Indian Stock Market
7/24
NSE National Stock Exchange
Established In November 1992.
Around 3500 Companies Are Listed
Around850 Main Brokers And10000 SubBrokers.
Non Corporate : 35 - Corporate : 725
Daily Traded Companies Are Around 100%
Average Daily Turnover Of Rs. 15000 cr.
7/31/2019 18360477 Indian Stock Market
8/24
BSE Bombay Stock Exchange
Established In 1875 As "The Native ShareAnd Stock Brokers Association".
Oldest Stock Exchange In Asia.
Around 7000 Companies Are Listed.
Around 935 Main Brokers And 5617 SubBrokers.
Non Corporate: 210 - Corporate : 710
Daily Traded Companies Are Around 3500Average Daily Turnover Of Rs. 7500 Cr.
7/31/2019 18360477 Indian Stock Market
9/24
I N D I C E S
Major Indices
Sensex (BSE),S&P CNX Nifty (NSE ), CNX ITIndex, CNX Nifty Junior, CNX Bank Index
Other Indices
CNX 100, CNX FMCG Index, S&P CNX 500, CNXPSE Index, CNX Midcap, CNX MNC Index, S&PCNX Defty, CNX Service Sector Index, CNXMidcap 200, S&P CNX Industry
Indices, Customized Indices, CNX EnergyIndex, CNX Pharma Index, CNX InfrastructureIndex, CNX PSU BANK Index , CNX Realty Index
7/31/2019 18360477 Indian Stock Market
10/24
REGULATERY BODY
SEBI Securities & Exchange Board of India
Established In 1992, As Per Securities& Exchange Board Of India , Act.
To Protect The Interests Of Investors
To Regulate The Securities Market.
To Promote The Development Of The
Securities Market
7/31/2019 18360477 Indian Stock Market
11/24
Basic requirement for Investing in
stocks
D-Mat Account:-
Saving Bank Account:-
Permanent Account Number (PAN):- Trading Account with Recognized Stock
Broker:-
7/31/2019 18360477 Indian Stock Market
12/24
D-Mat Account and its Benefits
A Dmat account is like a Bank Account, with thedifference being that instead of cash, a Dmataccount holds shares.
Safe & convenient way to hold securities.
Immediate Transfer of Securities. No Stamp Duty on Transfer of Securities.
Auto. Credit Of Shares Into Dmat Account,
Arising Out of Bonus, Right Issue ,Split,Merger, De-merger.
7/31/2019 18360477 Indian Stock Market
13/24
Trading Account
A Trading account is required if an individual
wishes to trade, i.e. buy and sell shares in thestock exchange. A Trading account can also be
opened with most banks and financialinstitutions, after filling up the required formsand providing identity and address proofs.
7/31/2019 18360477 Indian Stock Market
14/24
Trading Process
Once the Dmat account, Trading account andBank account are in place, an individual is readyto start trading. While it is not necessary to have
the Dmat account, Trading account and Bankaccount with the same organization.
7/31/2019 18360477 Indian Stock Market
15/24
THREE WAYS TO INVEST IN SHARES
PRIMARY MARKET:-Where Company Directly Allots His Equity
Shares To Investors.
SECONDARY MARKET:-Where Allotted Sharein Public Issue Are Bought And Sold
by Investors With The Help Of Stock Brokers
at Various Stock Exchanges.
Future & Options:- Its a derivative segment
of Underlying securities.
7/31/2019 18360477 Indian Stock Market
16/24
PRIMARY MARKET
The primary market is where securities are
created (by means of an IPO).
Initial Public Offering (IPO) is the first sale ofstock by a company to the public. A companycan raise money by issuing either debt or equity.If the company has never issued equity to thepublic, it's known as an IPO. This market isknown as primary Market
7/31/2019 18360477 Indian Stock Market
17/24
SECONDARY MARKET
A market on which an investor purchases an asset
from another investor rather than an issuing
corporation.
In this market Brokers becomes intermediate body
between buyer and seller.
7/31/2019 18360477 Indian Stock Market
18/24
FUTURES & OPTIONS
In finance, a security whose price is dependent
upon or derived from one or more underlyingassets.
The derivative itself is merely a contractbetween two or more parties.
Its value is determined by fluctuations in the
underlying asset. The most common underlyingassets include stocks,bonds, commodities, currencies.
7/31/2019 18360477 Indian Stock Market
19/24
DIFFERENCE IN EQUITY & DERIVATIVESSEGMENTS IN EQUITY MARKET
A) DELIVERY TRADING OR CASH MARKETB) INTRADY TRADING OR MARGINE MARKET
F&O MARKET IS COMBINES FEATURES OFDELIVERY AND
INTRADAY TRADING
PARAMETERS:-
A) TIME
B) NUMBER OF SHAREC) INVESTMENT
D) BROKERAGE
E) BILATERAL RETURNS
7/31/2019 18360477 Indian Stock Market
20/24
TRADING TYPESINTRADAY TRADING:-In this type oftrading, you dont have holding of shares,
you just take a position which is must tosquare offsame day before 3:30 oclock.
DELIVERY TRADING :- In this type oftrading, you buy shares and hold them
till you receive the returns on yourinvestment.
Futures & Option trading (F&O):- In this type of
trading, you dont have holding of shares ,you justmake a contract which is must to square off
depending on time frame of contract made
(i.e.1/2/3 month) .
7/31/2019 18360477 Indian Stock Market
21/24
TYPES OF ORDERS
ON MARKET ORDER
LIMIT ORDER
IMMEDIATE OR CANCEL (IOC) ORDER
STOP LOSS ORDER
TRAILING STOP LOSS ORDER
7/31/2019 18360477 Indian Stock Market
22/24
FACTORS INFLUENCING CHANGE IN STOCK PRICE
DEMAND & SUPPLY, PROFITS, P.H , P/ERATIO, DIVIDENDS, BONUS SHARES,
ECONOMIC NEWS, POLITICAL NEWS,
COMPANY NEWS.
7/31/2019 18360477 Indian Stock Market
23/24
SOME COMMON TERMS IN STOCK MARKET
BULL MARKET, BEAR MARKET, BROKERAGE,
MARGINE, OPEN, CLOSE, DAY HIGH, DAY
LOW, PREVIOUS CLOSE, % CHANGE, 52WEEK HIGH LOW, RESISTANCE & SUPPORT, STT,
TOT, OTLVT, STAMP DUTY.
7/31/2019 18360477 Indian Stock Market
24/24
THANKING YOU ALL