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Demystifying StocksStock Market Indices
Stock market and share market essentially mean the same thing. Both terms describe an exchange in which buyers and sellers...
Share:Share is a unit issued by a company at the time of raising fundfrom the market. It is a certificate issued to a pers...
Stock:Stock, with reference to the stock market are the total number ofshares a person has in one company or in many compa...
Stock Market• Stock market is an organized market, where securities of  government, semi government bodies and corporate  ...
Types of Stock Market
Primary Market     The first group of investors to whom a new        issue of a security or share is sold.     The primary...
Secondary Market           A market where investors         purchase securities, assets, or               shares from othe...
Market ConditionsBull Market:A financial market conditions in which prices of securities or group of securitiesare rising ...
Types of Stocks      BLUE CHIP :                                   PENNY :                                                ...
Procedure for listing in Stock Exchanges•   Company decide to go public and raise fund from the market and decide upon    ...
Market Capitalization•   Market capitalization is often called as market cap is    a measurement of the size of a business...
10 Largest Stock Markets Rank       Exchange Name                      Country  1     New York Stock Exchange             ...
Stock Markets in India•   Bombay Stock Exchange•   National Stock Exchange•   Regional Stock Exchanges    Ahmadabad    Ban...
Bombay Stock Exchange                     Type                     Stock ExchangeLocation                    Mumbai, India...
BSE IndicesBSE SENSEX:The Bombay Stock Exchange SENSEX also referred to as BSE 30. It is a free-float marketcapitalization...
National Stock Exchange                          Type                                   Stock ExchangeLocation            ...
NSE IndicesS&P CNX Nifty:It is Standard & Poors CRISIL NSE Index 50. Nicknamed Nifty 50 or simply Nifty . It is the leadin...
NSE IndicesCNX Midcap:The medium capitalized segment of the stock market is being increasingly perceived as anattractive i...
NSE IndicesS&P CNX Nifty Dividend:Dividends are an important component of the total return on equities. The S&P CNX NiftyD...
Importance Of IndicesThe stock market indexes are useful in a number of ways tostock investors1. The market indexes provid...
Thank You!          • READ MORETwitter      Website    Facebook
•   Registered office: Kotak Securities Limited, 1st Floor, Bakhtawar, 229, Nariman    Point, Mumbai - 400021. SEBI Regist...
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Stock Market Indices

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Stock market is an organized market, where securities of government, semi government bodies and corporate enterprises are bought or sold.It is established for the purpose of assisting, regulating and controlling business in buying selling and dealing in securities.
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Stock Market Indices

  1. 1. Demystifying StocksStock Market Indices
  2. 2. Stock market and share market essentially mean the same thing. Both terms describe an exchange in which buyers and sellers of stock or shares may trade in a market with high liquidity.
  3. 3. Share:Share is a unit issued by a company at the time of raising fundfrom the market. It is a certificate issued to a person whoapplies for it and is given at a value predetermined by thecompany.It is the smallest unit of ownership that may be bought or soldon or off an exchange. This is referred to as share trading.
  4. 4. Stock:Stock, with reference to the stock market are the total number ofshares a person has in one company or in many companies. Stockscan be traded publicly on the stock market.
  5. 5. Stock Market• Stock market is an organized market, where securities of government, semi government bodies and corporate enterprises are bought or sold.• It is established for the purpose of assisting, regulating and controlling business in buying selling and dealing in securities.• In the stock market only those securities listed in the stock exchange are transacted.• Individuals alone can buy and sell securities.
  6. 6. Types of Stock Market
  7. 7. Primary Market The first group of investors to whom a new issue of a security or share is sold. The primary market consists of the issuer and the first buyers of the share issue. The primary market can be at times more volatile than the secondary market because it is difficult to determine the underlying value of new issues.
  8. 8. Secondary Market A market where investors purchase securities, assets, or shares from other investors, rather than from issuing companies themselves. The national exchanges - such as the New York Stock Exchange and the NASDAQ are secondary markets.
  9. 9. Market ConditionsBull Market:A financial market conditions in which prices of securities or group of securitiesare rising or are expected to rise. Bull markets are characterized by optimism,Investor confidence and expectations that strong results will continue.Bear Market:It is a market condition in which the prices of securities are falling. As investorsanticipate losses in a bear market and selling continues, pessimism only grows
  10. 10. Types of Stocks BLUE CHIP : PENNY : INCOME : VALUE :Carry the highest value. Low-priced, speculativeLarge, established firms stocks ; very risky. Stocks that pay higher- Stock that is currently than-average dividends selling at a low price.Long record of profit Stocks issued bygrowth, dividend payout over a sustained period. Companies with good companies with erraticand a good reputation history of revenues and Dividends tend to be earnings and growth earnings. paid by established potential but stock companies with stable prices do not reflect earnings this are considered value companies These stocks are only temporarily out of favour and may experience growth.
  11. 11. Procedure for listing in Stock Exchanges• Company decide to go public and raise fund from the market and decide upon the Total amount to be raised from the Market.• They get clarification from SEBI.• This amount is broken down in number of shares by deciding the Face Value. As per the norms of the SEBI the FV is to be multiple of 5. Normal practice is keeping this at Rs10.• Then the No of shares to be introduced in the Market is decided.• Depending upon the response of the Stock as IPO, when it is opened on Secondary Market the price is decided.• The combined collection of the firm from IPO and Secondary Market operations becomes the Market Capitalisation of the firm, from which a share of Profitability is distributed among the share holders in the form of Dividend
  12. 12. Market Capitalization• Market capitalization is often called as market cap is a measurement of the size of a business enterprise. Market Capitalization• It is the total dollar market value of all of a companys outstanding shares calculated by multiplying a companys shares outstanding by the current market price of one share.• The companies were divided into large-cap, mid- cap, and small-cap based on the size of market capitalization. large cap mid cap Large-cap: $10 billion–$100 billion. small cap Mid-cap: $1 billion–$10 billion. Small-cap: $100 million–$1 billion.
  13. 13. 10 Largest Stock Markets Rank Exchange Name Country 1 New York Stock Exchange United States 2 Tokyo Stock Exchange Japan 3 NASDAQ United States 4 Euro next Belgium, France, Holland, Portugal 5 London Stock Exchange United Kingdom 6 Shanghai Stock Exchange China 7 Hong Kong Stock Exchange Hong Kong 8 Toronto Stock Exchange Canada 9 BM & FBovespa Brazil 10 Bombay Stock Exchange India
  14. 14. Stock Markets in India• Bombay Stock Exchange• National Stock Exchange• Regional Stock Exchanges Ahmadabad Bangalore Bhubaneswar Calcutta Cochin Coimbatore Delhi Guwahati Hyderabad Jaipur Ludhiana Madhya Pradesh Madras Magadh Mangalore Meerut OTC Exchange Of India Pune Saurashtra Kutch Uttar Pradesh Vadodara
  15. 15. Bombay Stock Exchange Type Stock ExchangeLocation Mumbai, IndiaFounded 1875Owner Bombay Stock Exchange LimitedKey people Ashishkumar Chauhan (Interim CEO)Currency Indian rupeeNo. of companies listed 5133 (May 2012)Website www.bseindia.com
  16. 16. BSE IndicesBSE SENSEX:The Bombay Stock Exchange SENSEX also referred to as BSE 30. It is a free-float marketcapitalization weighted index of 30 well-established and financially sound companies listed onBombay Stock Exchange.BSE Mid-Cap:BSE Mid-Cap tracks the performance of scrips between 80 & 95% of aggregate marketcapitalisation.It is also introduced to track the performance of companies with relatively smallermarket capitalization.BSE Small-Cap:BSE Small-Cap index tracks the performance of remaining 5% scrips (95-100%).It is introduced to track the performance of companies with relatively smaller marketcapitalization.BSE-500:It represents more than 93% of the listed universe Companies with large market capitalization.
  17. 17. National Stock Exchange Type Stock ExchangeLocation Mumbai, IndiaFounded 1992Owner National Stock Exchange of India LimitedKey people Ravi Narain (MD)Currency Indian rupeeNumber of securities available for trading 3,041Record Market Cap 75,60,607 crores (May 2012)Website www.nse-india.com
  18. 18. NSE IndicesS&P CNX Nifty:It is Standard & Poors CRISIL NSE Index 50. Nicknamed Nifty 50 or simply Nifty . It is the leadingindex for large companies on the National Stock Exchange of India. The S&P CNX Nifty stocksrepresent about 60% of the total market capitalization of the National Stock Exchange.CNX Nifty Junior:It represents the next range of liquid securities after S&P CNX Nifty. It representingapproximately 10% of the traded value of all stocks on the National Stock Exchange of India.S&P CNX 500:The S&P CNX 500 is India’s first broad-based stock market index of the Indian stock market.The S&P CNX 500 represents about 96% of total market capitalization and about 93% of the totalturnover on the National Stock Exchange of India (NSE).CNX 100:The CNX 100 Index represents about 78% of the free float market capitalization of the stockslisted on NSE as on March 30, 2012.
  19. 19. NSE IndicesCNX Midcap:The medium capitalized segment of the stock market is being increasingly perceived as anattractive investment segment with high growth potential. The primary objective of the CNXMidcap Index is to capture the movement and be a benchmark of the midcap segment of themarket.Nifty Midcap 50:The medium capitalized segment of the stock market is being increasingly perceived as anattractive investment segment with high growth potential. The primary objective of the NiftyMidcap 50 Index is to capture the movement of the midcap segment of the market. It can also beused for index-based derivatives trading.S&P CNX Defty:Almost every institutional investor and off-shore fund enterprise with an equity exposure in Indiawould like to have an instrument for measuring returns on their equity investment in dollarterms. To facilitate this, a new index the S&P CNX Defty-Dollar Denominated S&P CNX Nifty hasbeen developed. S&P CNX Defty is S&P CNX Nifty, measured in dollars.
  20. 20. NSE IndicesS&P CNX Nifty Dividend:Dividends are an important component of the total return on equities. The S&P CNX NiftyDividend index is designed to track the total dividend from the constituents of the S&P CNXNifty index. The value of the dividend index is expressed in terms of index points. It enablesthe investor to take a view on dividends for S&P CNX Nifty securities independent of theprice movementIndia VIX:Volatility Index is a measure of market’s expectation of volatility over the near term.Volatility is often described as the “rate and magnitude of changes in prices" and in financeoften referred to as risk. Volatility Index is a measure, of the amount by which anunderlying Index is expected to fluctuate, in the near term, (calculated as annualizedvolatility, denoted in percentage e.g. 20%) based on the order book of the underlying indexoptions.
  21. 21. Importance Of IndicesThe stock market indexes are useful in a number of ways tostock investors1. The market indexes provide an historical perspective of stock market performance.2. It provide a yardstick with which investors can compare the performance of their individual stock portfolios.3. It acts as a forecasting tool. Studying the historical performance of the stock market indexes, investors can forecast trends in the market
  22. 22. Thank You! • READ MORETwitter Website Facebook
  23. 23. • Registered office: Kotak Securities Limited, 1st Floor, Bakhtawar, 229, Nariman Point, Mumbai - 400021. SEBI Registration No: NSE INB/INF/INE 230808130, BSE INB 010808153/INF 011133230/INE 011207251, OTC INB 200808136, MCXSX INE 260808130.• Disclaimer: Investments in securities are subject to market risks, please read the SEBI prescribed Combined RDD prior to investing.• * Awarded Best Brokerage Firm in India by AsiaMoney in 2006, 2007, 2008 and 2009

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