A brief about“ stock market” made by – Swapnil Jain , Mayank Pathak mechanical B M .I .T.M
• Our goal in this discussion is to get a “big picture” overview of : – What is a stock – Who owns stocks – How a stock exchange works, and – How to read and understand the stock market information. – Sensex and nifty.
What is stock market ???• Public entity (a loose network of economic transactions).• Mutual funds, banks, insurance companies• Trading (BUYING & SELLING)of stock (SHARES) .• Holding stocks for long term.• Trading intra day .• Role of Stock exchange .• Vc ‘s investment .
Stock exchange :• stock brokers traders to trade stocks, bonds, and other securities• offering to investors is done in the primary market - broker secondary market - sub brokerIn India there are 23 recognized stock exchanges .B S E & N S E are the most important .
Can you list your own company in stock market ??? A company with annual turnover more than 100 crore can be listed in oneof stock exchanges in India and should follows the rules and regulations in the lawbook in SEBI India .
Market capitalization• The Market capitalization of a company is determined by multiplying the prize of its stock by the no. of such socks issued . And thus on this basis the company listed in diff. group• AAA - Highest value firm.• AA - Higher value firm.• A - Adequate safety• BBB - Moderate safety• BB - In Adequate safety• BC & D- High risk and default
How these transitions are done ???• During 1980s trading was done by post .• And now electronic transitions are done .• Buyer put his price on the screen and if the same time there is any seller of the stock for the same price the transitions will be done .
Who decides the price of stock ??• The investors decides the price .• The base price of any share is decided by the company on the basis of its annual capitalization .• And when the stocks are introduced for public The buyer and seller decides the price . DEMAND α PRICE
Profit / loss -• Selling the stock less than the price of buying price leads to loss .• Risk .• Profit occurs when we make the deal with selling price more than purchase price.
SENSEX• calculated since 1986.• calculated on the basis of capitalization methodology.• year 2003 the methodology.• Now the sensex is based on free float market cap of 30 stocks traded on bse relative to the base value and is calculated for every 15 seconds.
Companies listed in BSE-1. BAJAJ AUTO LIMITED 26. Tata Motors Ltd.2. Bharti Airtel Ltd. 27. Tata Power Co. Ltd.3. Bharat Heavy Electricals Ltd. 28. Tata Steel Ltd.4. Cipla Ltd. 29. Tata Consultancy Services Ltd.5. Coal India Ltd. 30. WIPRO LTD.6. DLF Ltd.7. Housing Development Finance Corp.Lt8. HDFC Bank Ltd.9. Hero MotoCORP Ltd.10. Hindustan Unilever Ltd.11. Hindalco Industries Ltd.12. ICICI Bank Ltd.13. Infosys Ltd.14. ITC Ltd.15. Jaiprakash Associates Ltd16. Jindal Steel & Power Ltd.17. Larsen & Toubro Ltd.18. Mahindra & Mahindra Ltd.19. Maruti Suzuki India Ltd.20. NTPC Ltd.21. Oil And Natural Gas Corporation22. Reliance Industries Ltd.23. State Bank Of India,24. Sterlite Industries (India) Ltd.25. Sun Pharmaceutical Industries Ltd.
NIFTY• In April 1993, it was recognized as a stock exchange under the [[Securities Contracts (Regulation) Act], 1956.• The National Stock Exchange (NSE)is stock exchange located at Mumbai, India.• It is in the top 20 largest stock exchanges in the world by market capitalization and largest in India .• NSE has a market capitalization of around US$1 trillion.• the NSEs key index is the S&P CNX Nifty, by market capitalization.
NSE listed companies-1. ACC 22. HUL 43. SIEMENS2. Ambuja cements 23. ICICI BANK 44. STERLITE IND3. Asian paints 24. IDFC 45. SUN PHA4. Axis bank 25. INFOSYS 46. TATA MOTO.5. Bajaj Auto 26. ITC 47. TATA POWER6. Bank of baroda 27. JINDAL STEELS 48. TATA STEEL7. Bharti airtel 28. JAYPEE ASS. 49. TCS8. BHEL 29. KOTAK MAH BANK 50. WIPRO9. BPCL 30. L & T10. Cairn India 31. MAH & MAHINDRA11. Cipla 32. MARUTI SUZUKI12. Coal india 33. NTPC13. DLF 34. ONGC14. DR Reddys 35. P N B15. GAIL 36. POWER GRID16. GRASIM IND 37. RANBAXY LABS17. HCL TEHNO 38. RELIANCE INDIA18. HDFC 39. RELIANCE INFRA19. HDFC BANK 40. SAIL20. HERO Motocop 41. SBI21. Hindalco 42. SESA GOA
Who provide security to our money ??? SECURITY AND EXCHANGE BOARD OF INDIA• SEEKS ALL STOCK TRANSITIONS IN INDIAN MARKET.
Powers & functions of powers• to require the stock exchange to amend their by−laws.• inspect the accounts and call for periodical returns from stock exchanges.• compel certain companies to list their shares in one or more stock exchanges.• levy fees and other charges on the intermediaries for performing its functions.• grant license to any person for the purpose of dealing in certain areas.• prosecute and judge directly the violation of certain provisions of the companies Act. functions• quasi-legislative• quasi-judicial• quasi-executive It conducts investigation and enforcement action in its executive function and it passes rulings and orders in its judicial capacity
Benefits of stock exchange to community• Assist the economic development by providing a body of investors.• Encourages capital formation.• Government can undertake projects of national importance and social values raising funds through the sale of its securities on the stock exchange .
Benefits of stock exchange to the company -• The market price of securities is likely to be higher in relation to its earning dividends and property values . This raises the bargaining power of the company in the events of the takeover, merge or amalgamation.
Important source for information - special thanks to Mr. larry page for his innovative creation “ The Google” our www.sharekhan.comPresentation partner : www.wikipedia.com SMC INDIA www.nasdeq.com www.nyse.com www.smcindia.com