1.
INTRODUCTION
 A stock market is a public market for the trading of
companies stock and derivatives at an agreed price;
these are securities listed on a stock exchange as well
as those only traded privately.
 A place where shares, stocks and bonds are bought and
sold.

2.
IMPORTANCE
 Indices help to recognize broad trends in the market.
 The investors can use the indices to allocate the funds
rationally among the stocks
 Technical analysts use these indices to predict the
future market
 Indices function as status report on the general
economy
 Stock market indices are the barometers of the stock
markets.

3.
DETERMINANTS OF A STOCK INDEX
 LIQUIDITY
 DIVERSIFICATION
 OPTIMUM SIZE
 MARKET CAPITALIZATION
 AVERAGE

4.
BOMBAY STOCK EXCHANGE(BSE)
 BSE is the oldest stock exchange in Asia with a rich
heritage of over 133 years of existence
 BSE is the first stock exchange in the country which
obtained permanent recognition from the govt of
India under the securities contract act of 1956.
 BSE has facilitated the growth of the indian corporate
sector by providing it with cost and time efficient
access to resource.

5.
SENSEX
 The index includes 30 companies which figure in top
100 in terms of market capitalization and are also
among the leaders in there industry groups
 Example:- ICICI bank, Dr Reddy’s lab,
cipla,hcl,nestle,BHEL,palmolive

6.
NATIONAL STOCK EXCHANGE(NSE)
 The NSE of India is situated in Mumbai is the largest
and most advanced exchange with 1016 companies
listed and 726 trading members.
 The NSE is owned by the group of leading financial
institutions such as Indian bank or lic.

7.
Nifty
 Nifty is S&P endorsed stock index owned by the Indian
Index Service Ltd(IISL)
 It is a highly diversified index, accurately reflecting
the overall market conditions and is composed of 50
liquid stocks.

8.
Signals of stock exchange increase
 Rise in earnings.
 Increase in assets as debts are stable or increasing.
 Positive publicity for industry.
 Heavy insider or corporate buying.
 Powerful demographics.

9.
Effects of stock exchange on Indian
economy
 Wealth effect.
 Effect on pension.
 Investments.
 Raising funds for companies.

10.
Effects on companies
 Difficult to issue share right.
 Firm is trying to take over.
 A collapsing share price is often a reflection of badly
performing firm..

11.
Presented by:-
 Syeda Shaziya Erum
 Ajay C
 Aishwarya
 Abhishek G
 Abhishek M N
 Akul D
 Bharath Supratik
 Narasimha
 Ayesha Amreen