PRESENTATION ON NATIONAL STOCK EXCHANGE, THEIR WORKINGS, INDICES AND HOW TO STUDY

1. BY SHUBHAM VISHWAKARMA
PROJECT ON NATION STOCK EXCHANGE

2. NATIONAL STOCK EXCHANGE
NSE

3. WHAT IS STOCK EXCHANGE
Stock exchange is the organized and regulated financial market where securities (bonds, notes,
shares) are bought and sold at prices governed by the forces of demand and supply. Stock market
basically serves as :-
1. Primary markets where corporation, governments, municipalities and other incorporated bodies
can raise capital by channelling savings of the investor into productive ventures.
2. Secondary market where investors can sell their securities for cash, thus reducing the risk of
investment and maintaining liquidity in the system.

4. NATIONAL STOCK EXCHANGE
 National Stock Exchange of India Limited (NSE) is the leading stock exchange in India, located in
Mumbai.
 NSE was incorporated in 1992 as a tax paying company and was recognised as a stock exchange
in 1993 under the Securities Contracts (Regulation) Act 1956.
 NSE is the 12th largest Stock exchange in the world with a market capitalization of more than US $
1.65 trillion as on 31st January 2015 and 2nd largest for trade in equity shares from January to June
2018. ( Reported By :- WORLD FEDRATION OF EXCHANGE).`
 NSE was established in 1992 as the first demutualized electronic exchange in the country.

5. PURPOSE OF NSE
 Establishing A National wide trading facility for all type of securities.
 Ensuring equal access to investors all over the country through an communication network.
 Providing for a fair, efficient and transparent securities market using electronic trading system.
 Enabling shorter settlement cycles.
 Meeting up with international benchmark and standard.

6. INDICES OF National Stock Exchange
 A stock market index is a measure of the relative value of a group of stock in numerical terms. As
the stocks within an index change value, the index value changes. An index is important to
measure the performance to measure the performance of investment against a relevant market
index.
 A stock market index is created by a group of stocks that are representative of the whole market
or a specified sector or segment of the market. An index is calculated with reference to a base
period and a base index value
 Financial indexes are constructed to measure price movement of stocks, bonds, T-bills and other
form of investments.
 It shows the overall behaviour of equity market.

7. DIFFERENT TYPE OF INDICES IN NSE
 Sectoral Indices
 Thematic Indices
 Strategy Indices
 Fixed Income Indices
 Hybrid Indices
 Index Indices

8. BROAD MARKET INDICES
 These indices are broad-market indices, consisting of the large, liquid stocks listed on the
exchange they serve as a benchmark for measuring the performance of the stocks or portfolios
such as mutual fund investment.
 NIFTY 50 INDEX
 NIFTY NEXT 50 INDEX
 NIFTY 100 INDEX
 NIFTY 200 INDEX
 NIFTY 500 INDEX
 NIFTY MIDCAP 150 INDEX
 NIFTY MIDCAP 50 INDEX etc…

9. NIFTY OF NSE
 National stock exchange Fifty or Nifty is the market indicator of NSE. It ideally is a collection of 50
stock but presently has 51 listed in it. It is also referred to as NIFTY50 and CNX NIFTY by some as
it is owned and managed by India Index Services And Product Ltd. (IISL).
 NIFTY is calculated through the Free Floated Market Capitalization Weighted Method

10. PRODUCTS OF NSE