What is a Stock exchange..??
It’s a place where trading of
shares is done inform of buying
and selling .
Major stock exchange’s in
National stock exchange
Bombay stock echange
over the counter exchange
NATIONAL STOCK EXCHANGE
India’s largest financial market
Established in November 1992
Third in the world in terms of volume
A market capitalization of around US$1
Trillion and over 1,652 listings as of July 2012
Nation wide trading facility for all type of
Equal access to investors all over the country
through appropriate communication
Meeting international benchmarks and
Enabling shorter settlement cycles and book
entry settlement system.
NSE LAUNCHED SEVERAL INDICES..
S&P CNX NIFTY (STANDARD &POOR’S CRISIL
CNX NIFTY JUNIOR
CNX 100 (=S&P CNX NIFTY +CNX NIFTY
S&P CNX 500 (=CNX 100+400 MAJOR PLAYERS
ACROSS 72 INDUSTRIES)
CNX MIDCAP( INTRODUCED ON 18 JULY 2005)
S&P CNX NIFTY
It’s also called nifty50 or simply nifty ,is a stock
market index and bench mark index for Indian equity
Owned and managed by india index services and
products limited (IISL). Joint venture of NSE and
IISL India's first company focused index as a core
IISL marketing agreement and license with
standard & poor for co-branding equity indices.
S&P CNX NIFTY COVERS 22 SECTORS OF THE
S&P CNX NIFTY STOCKS REPRESENT ABOUT
67.27% OF THE FREE FLOAT MARKET
CAPITALISATION OF STOCKS LISTED AT NSE .
S&P CNX NIFTY IS A FREE FLOAT MARKET
CAPITALISATION WEIGHTED INDEX . UPTO 26
JUNE 2009 IT WAS CALCULATED ON FULL
MARKET CAPITALISATION METHODOLOGY.
BASE PERIOD FOR S&P CNX NIFTY INDEX IS
3 NOVEMBER 1995.
BASE VALUE OF THE INDEX HAS BEEN SET
AT 1000 , AND BASE CAPITAL OF RS.2.06
S&P CNX NIFTY DEVELOPED BY AJAY SHAH
AND SUSAN THOMAS
HOW NIFTY50 STOCKS SELECTED:
RANK BASED ON THE MARKET CAP
(SHOULD BE AMONG TOP 100)
MARKET CAPITALISATION WEIGHT
INDUSTRY/SECTOR THEY BELONG
FREE FLOAT MARKET CAPITALISATION..
THE VALUE OF ALL SHARES AVAILABLE
FOR PUBLIC TRADING EXCLUDING :
THE PROMOTERS EQUITY
HOLDING THROUGH FDI ROUTE
HOLDING BY PVT. CORPORATES
HOLDING BY EMPLOYEE WELFARE FUND.
How NIFTY is calculated..
The formula for calculating the NIFTY =
(SUM OF FREE FLOW MARKET CAP OF 50
BENCHMARK STOCKS)*INDEX FACTOR
Index Factor = 1000/Market Cap Value in 1995.
Where, 1000 is the Index value during 1995
Assume NIFTY has only 2 stocks namely SBI
and RELIANCE. Total shares in SBI are 500
out of which 200 are held by Government
and only 300 are available for public
trading. RELIANCE has 1000 shares out of
which 500 are held by promoters and 500
are available for trading. Assume price
of SBI Stock is Rs.100 and Reliance is
Then "free-Floating Market Cap" of these 2
(300*100+500*200) = 30000+100000 = Rs. 130000
Assume Market Cap during the year 1995 was
Then NIFTY = 130000*1000/25000 = 5200.
The methodology in the example is exactly
followed to calculate the SENSEX, only difference
being the inclusion of 30 stocks.