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INTRODUCTION
Stock markets are
highly correlated
   in the era of
globalisation. The
world has became
  a small global
      village.
Introduction

New York Stock Exchange.

•Origin - May 17, 1792,

•World's largest stock exchange by market capitalization of its
listed companies at US$14.242 trillion as of Dec 2011.


•Average daily trading value was approximately US$153 billion in
2008.
INTRODUCTION

NASDAQ

•The NASDAQ Stock Market originally stood for National
Association of Securities Dealers Automated Quotations.

•Founded 1971 by the National Association of Securities
Dealers(NASD)

•Second-largest stock exchange by market capitalization in the
world.
BSE

The Bombay Stock Exchange -oldest exchange in Asia.

Bombay Stock Exchange (BSE), (Bombay Śhare Bāzaār) is a
stock exchange located on Dalal Street, Mumbai, Maharashtra,
India.

Established in 1875, BSE Ltd. (formerly known as Bombay
Stock Exchange Ltd)

BSE’s popular equity index - the SENSEX
CASE STUDY


The case study has been conducted by looking
into the nature of relationship between the daily
share price in BSE and NSE on the one hand
and Nasdaq and New York Stock Exchange on
the other, for 1999-2000 through 2000-2001.


                               Source : Deutsche Börse’s
CASE STUDY
Unidirectional casualty between Nasdaq and
Bse or Nse.

The same relationship as well as direction of
influence also holds good for the technology
segment of the New York Stock Exchange and
BSE or NSE.

 However, domestic prices of technology stocks
and overall domestic share prices were found to
be independent of each other
CORRELATION BETWEEN BSE-SENSEX AND OTHER SELECT INDICES

Indices Correlation            T test results

                                                level of correlation


Sensex & Dow                                       Moderate

Sensex & NYSE                                       Strong

Sensex & NASDAQ                                      Weak

Sensex & S&P500                                      Weak

Sensex & HangSeng                                   Strong

Sensex & Nikkei 225                                  Weak

Sensex & FTSE100                                   Moderate

Sensex & SSE Composite index                          Strong
Conclusion
Lowest correlation was recorded between
Sensex and NASDAQ.

The correlation of Indian stock market is
weak
with NASDAQ and S&P500 of US market and
with Nikkei225 of Japanese stock market

Highest correlation was recorded between
Sensex and Hang Seng.
BSE TECk AND NASDAQ
BSE TECH
BSE TECk index was launched by Bombay Stock Exchange
provide a reliable index for benchmarking the
performance of the TMT (Technology
Media and Telecom) sectors in India

NASDAQ
NASDAQ stands for National Association of Securities Dealers
Automated Quotation

The NASDAQ Composite Index is the most
widely tracked technology stock index
in the world
WHEN COMPARED THE BSE TECk AND NASDAQ


It was proved that-

1. Both NASDAQ and BSE TECk financial series are non
stationary

2. Both the series are co-integrated

3. NASDAQ use to forecast BSE TECk

4. BSE TECk does not use to forecast NASDAQ
CONCLUSION
• So we can conclude that movement in NASDAQ causes movement
in BSE TECk.

•BSE TECk and NASDAQ are positively correlated

• Estimates that calculated will rarely match with the absolute
value that BSE TECk may reach a day after NASDAQ has
changed on prior date.

• Consequently, the estimated values should be used to identify
trend and not judge absolute value of BSE TECk on a particular day.
Bse ppt[2]
INTRODUCTION
             LONDON STOCK EXCHANGE
The London Stock Exchange,
or LSE, was formed around 300
years ago, and today lists
about 2,500 companies from
70 countries. 

Many large U.S. companies
listed on American exchanges
also list on the London Stock
Exchange. 

General Electric is one
example.
LISTING REQUIREMENTS OF STOCK
EXCHANGE
  LISTING                 BSE           LSE
  REQUIREMENTS
  Market Capitalization   250 million   $700000


  Number of float         25%           25%
  shares

  Accounting Standard     Indian GAAP   IFRS


  Timeline on going       6 months      4 – 24 months
  public

  Equity market listing   Rs. 20000     GBP million
  fees
FTSE 100 Index Chart
FTSE 100 Index
        5,937.33
 -8.52 (-0.14%)




 December 2011 to December 2012
Bse Sensex Chart
      Bse Sensex
        19,229.26
-126.00 (-0.65%)




December 2011 to December 2012
RECENT EVENTS

Recent market conditions have affected investor confidence
and the number of new companies joining the markets across
the globe. Despite this, investor appetite in the Indian economy
and Indian companies has remained strong and continues to
grow.

There has been a significant increase in the trading of Indian
paper in London this year. Indian companies can take
advantage of this opportunity, it is a strong sign of the growing
investor interest for Indian companies in London and makes a
London listing even more attractive than before.
Comparison of
BSE SENSEX and UK FTSE
CONCLUSION

•The results indicate that macro economics
factor have significant affect on stock
exchange.

•It may affect the different industry positively
or negatively.

•Two industries namely Building Materials and
Merchants and Engineering suffer because of
exchange rate movements.
SHANGHAI STOCK EXCHANGE
LOCATION          SHANGHAI, CHINA

FOUNDED            1891
RE- ESTABLISHED    1990
KEY PEOPLE        GENG LIANG---CHAIRMAN
                  ZHANG YUJUN--- PRESIDENT


CURRENCY          RENMINBI ( RMB )

1 RENMINBI        8.72 INDIAN RUPEE
FACTORS THAT BENEFIT BSE AGAINST
              SSE
•   Tax incentives
•   Predictabiity
•   Transparency
•   Principles of international guidelines
FACTORS IN WHICH INDIA LAGS
               BEHIND
• Nation of high savers
• High capitalisation
• Listed chinese companies are huge by Indian
  standards
• Less of Foreign direct investment
• Shanghai announces 24 hour trading by
  2020
INDIA AND CHINA’S PERFORMANCE IN THE
             LAST 5 YEARS
REASONS FOR CHANGE IN LAST 5 YEARS
Better corporate profitability
India’s equity capital markets
 are more developed than
 China’s
Greater exposure to the
  private sector
India’s driver of economic
 growth is consumption instead
 of volatile exports.
Effects on global economy and India
 India and china are the two
  emerging economies of Asia

 Reduced investments by the
  global investors in Asia.

 Lower confidence among global
  investors.

 Reduced global growth rate.

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Bse ppt[2]

  • 1. INTRODUCTION Stock markets are highly correlated in the era of globalisation. The world has became a small global village.
  • 2. Introduction New York Stock Exchange. •Origin - May 17, 1792, •World's largest stock exchange by market capitalization of its listed companies at US$14.242 trillion as of Dec 2011. •Average daily trading value was approximately US$153 billion in 2008.
  • 3. INTRODUCTION NASDAQ •The NASDAQ Stock Market originally stood for National Association of Securities Dealers Automated Quotations. •Founded 1971 by the National Association of Securities Dealers(NASD) •Second-largest stock exchange by market capitalization in the world.
  • 4. BSE The Bombay Stock Exchange -oldest exchange in Asia. Bombay Stock Exchange (BSE), (Bombay Śhare Bāzaār) is a stock exchange located on Dalal Street, Mumbai, Maharashtra, India. Established in 1875, BSE Ltd. (formerly known as Bombay Stock Exchange Ltd) BSE’s popular equity index - the SENSEX
  • 5. CASE STUDY The case study has been conducted by looking into the nature of relationship between the daily share price in BSE and NSE on the one hand and Nasdaq and New York Stock Exchange on the other, for 1999-2000 through 2000-2001. Source : Deutsche Börse’s
  • 6. CASE STUDY Unidirectional casualty between Nasdaq and Bse or Nse. The same relationship as well as direction of influence also holds good for the technology segment of the New York Stock Exchange and BSE or NSE.  However, domestic prices of technology stocks and overall domestic share prices were found to be independent of each other
  • 7. CORRELATION BETWEEN BSE-SENSEX AND OTHER SELECT INDICES Indices Correlation T test results level of correlation Sensex & Dow Moderate Sensex & NYSE Strong Sensex & NASDAQ Weak Sensex & S&P500 Weak Sensex & HangSeng Strong Sensex & Nikkei 225 Weak Sensex & FTSE100 Moderate Sensex & SSE Composite index Strong
  • 8. Conclusion Lowest correlation was recorded between Sensex and NASDAQ. The correlation of Indian stock market is weak with NASDAQ and S&P500 of US market and with Nikkei225 of Japanese stock market Highest correlation was recorded between Sensex and Hang Seng.
  • 9. BSE TECk AND NASDAQ BSE TECH BSE TECk index was launched by Bombay Stock Exchange provide a reliable index for benchmarking the performance of the TMT (Technology Media and Telecom) sectors in India NASDAQ NASDAQ stands for National Association of Securities Dealers Automated Quotation The NASDAQ Composite Index is the most widely tracked technology stock index in the world
  • 10. WHEN COMPARED THE BSE TECk AND NASDAQ It was proved that- 1. Both NASDAQ and BSE TECk financial series are non stationary 2. Both the series are co-integrated 3. NASDAQ use to forecast BSE TECk 4. BSE TECk does not use to forecast NASDAQ
  • 11. CONCLUSION • So we can conclude that movement in NASDAQ causes movement in BSE TECk. •BSE TECk and NASDAQ are positively correlated • Estimates that calculated will rarely match with the absolute value that BSE TECk may reach a day after NASDAQ has changed on prior date. • Consequently, the estimated values should be used to identify trend and not judge absolute value of BSE TECk on a particular day.
  • 13. INTRODUCTION LONDON STOCK EXCHANGE The London Stock Exchange, or LSE, was formed around 300 years ago, and today lists about 2,500 companies from 70 countries.  Many large U.S. companies listed on American exchanges also list on the London Stock Exchange.  General Electric is one example.
  • 14. LISTING REQUIREMENTS OF STOCK EXCHANGE LISTING BSE LSE REQUIREMENTS Market Capitalization 250 million $700000 Number of float 25% 25% shares Accounting Standard Indian GAAP IFRS Timeline on going 6 months 4 – 24 months public Equity market listing Rs. 20000 GBP million fees
  • 15. FTSE 100 Index Chart FTSE 100 Index 5,937.33 -8.52 (-0.14%) December 2011 to December 2012
  • 16. Bse Sensex Chart Bse Sensex 19,229.26 -126.00 (-0.65%) December 2011 to December 2012
  • 17. RECENT EVENTS Recent market conditions have affected investor confidence and the number of new companies joining the markets across the globe. Despite this, investor appetite in the Indian economy and Indian companies has remained strong and continues to grow. There has been a significant increase in the trading of Indian paper in London this year. Indian companies can take advantage of this opportunity, it is a strong sign of the growing investor interest for Indian companies in London and makes a London listing even more attractive than before.
  • 19. CONCLUSION •The results indicate that macro economics factor have significant affect on stock exchange. •It may affect the different industry positively or negatively. •Two industries namely Building Materials and Merchants and Engineering suffer because of exchange rate movements.
  • 20. SHANGHAI STOCK EXCHANGE LOCATION SHANGHAI, CHINA FOUNDED 1891 RE- ESTABLISHED 1990 KEY PEOPLE GENG LIANG---CHAIRMAN ZHANG YUJUN--- PRESIDENT CURRENCY RENMINBI ( RMB ) 1 RENMINBI 8.72 INDIAN RUPEE
  • 21. FACTORS THAT BENEFIT BSE AGAINST SSE • Tax incentives • Predictabiity • Transparency • Principles of international guidelines
  • 22. FACTORS IN WHICH INDIA LAGS BEHIND • Nation of high savers • High capitalisation • Listed chinese companies are huge by Indian standards • Less of Foreign direct investment
  • 23. • Shanghai announces 24 hour trading by 2020
  • 24. INDIA AND CHINA’S PERFORMANCE IN THE LAST 5 YEARS
  • 25. REASONS FOR CHANGE IN LAST 5 YEARS Better corporate profitability India’s equity capital markets are more developed than China’s Greater exposure to the private sector India’s driver of economic growth is consumption instead of volatile exports.
  • 26. Effects on global economy and India  India and china are the two emerging economies of Asia  Reduced investments by the global investors in Asia.  Lower confidence among global investors.  Reduced global growth rate.