The document provides information on trends in the Indian stock market and capital markets. It discusses key stock exchanges like BSE and NSE and their growth. It summarizes important indices like SENSEX and describes the functions and products of NSE. Trend data shows growing numbers of listed companies, securities traded, and total market capitalization between 2006-2010. Derivatives trading at NSE also increased substantially over this period. Milestones for NSE and BSE through 2014 include new platform and index launches and ratings achievements.

1. Indian Stock Market-Recent Trends

2. What is the Stock Market
 The securities regulation act of 1956 defined stock exchange as “an
association,organization,oraindividualwhichisestablishedforthe
purpose of assisting , regulating , and controlling business in buying
,sellinganddealing insecurities.

3. IMPORTANT FUNCTION OF STOCK EXCHANGE
 Provide central and convenient meeting places for sellers and
buyerofsecurities
 Increasethemarketabilityandliquidityofsecurities
 Contributetostabilityofpricesofsecurities
 Equalizationofpriceofsecurities
 Helptheinvestorstoknowtheworthoftheirholdings
 Help companies and government to raise funds from the
investors

4. BULL AND BEAR

5. Market Trend Analysis of a Company
 Fundamental Analysis: Fundamental analysis is the
examinationof theunderlyingforcesthataffecttheinterestsof the
economy,industry,andcompany.
 Ittriestoforecastthefuturemovementof thecapital marketusing
signals from theeconomy, industry, and company. Fundamental
analysis can be done by studying three prospects of
capital market
a.Economic Analysis
b.Industry Analysis
c.Company Analysis

6.  Technical Analysis: A study of past share price behavior to
predictthefuturetrend istermed as technical analysis. Technical
analysis is frequently used as a suitable Tools for technical
analysis are listed here below:
 a. Charts [Line, Bar, Candlestick, Point and figure
chart]
 b. Dow Theory
 c. Elliot Wave Theory
 d. Flow of Funds
 e. Market Structure
 f. Market Indicators

7. Overview of Capital Markets in
India
Capital market is the market for long-term funds,
just as the money market is the market for short-term funds. It
refers to all facilities and the institutional arrangements for
borrowing and lending term funds (medium-term and long-
term funds).The supply of funds for the capital market comes
largelyfromindividualsavers,corporatesavings,banks,insurance
companies,specializedfinancingagenciesandthegovernment.

8. Stock Exchanges in India
In terms of the legal structure,
the stock exchange which are
recognized under the
securities contracts
(regulation) Act in India,
could be separated into two
broad groups-
20 stock exchanges which are
set up as companies, either
limited by guarantees or by
shares
3 stock exchanges which are
functioning as Associations of
persons (AOP) viz. BSE, ASE
and Indore stock exchange.

9. Capital Market
in India
Gill Edged
Markets
Industrial
Securities Market
New issue
Market
Stock Exchange
DFI’s
IFCI
ICICI
SFC’S
IDBI
IIBI
UTI
Financial
Intermediaries
Merchant
Banks
Mutual Funds
Venture Capital
Companies
Leasing
Companies

10. Security and Exchange Board of India
 It is a board (autonomous body) created by the government of India
in1988 and givenstatutoryformin1992 withSEBI acts1992. Itshead
officeisinMumbai,andotherofficesinChennai,KolkataandDelhi.
Thebasicobjectivesoftheboardweredefinedas:
Toprotecttheinterestsof investorsinsecurities;
Topromotethedevelopmentofsecuritiesmarket;
Toregulatethesecuritiesmarketand;

11. Bombay Stock Exchange
 The BSE is the oldest stock exchange in Asia with rich
heritage. It is the first stock exchange in country to obtain
permanentrecognitionin1956 from thegovernmentof India
underthesecuritiescontracts(regulation)act,1956.
 Development of Indian capital market is widely recognized
anditsindex,SENSEX,istrackedworldwide.
 BombayStock Exchangemarketcapitalization crossesRs.100
Trillionforthefirsttimeinthehistoryof IndianStockMarket
( as on 28th Nov,2014).It currently ranks 12 at world’s Largest
Stock Exchanges by their Market Capitalization behind SIX
SwissExchange.

13. Trend of SENSEX from 2008-2014
Year Open High Low
2008 20,325.27 21,206.77 7,697.39
2009 9,720.55 17,530.94 8,047.17
2010 17,473.45 21,108.64 15,651.99
2011 20,621.61 20,664.80 15,135.86
2012 15,534.67 19,612.18 15,358.02
2013 19,513.45 21,483.74 17,448.71
2014 21,222.19 28,822.37 19,963.12

14. Over the Counter Exchange of India (OCTEI)
 OTCEI wasincorporated inOctober1990 asasection 25 company
under the companies Act 1956 and is recognized as a stock
exchangeundersection4 of thesecuritiescontractsregulationact,
1956.
 Theobjectof theOCTEI is“Toprovideanalternatemarketforthe
securities of smaller companies, public-sector companies, closely-
heldcompaniesdesirouslistingetc

15. TheNationalStockExchangeofIndiaLimited
 NSE is a Mumbai-based stock exchange Which is largest stock
exchangeinIndiaintermsof dailyturnoverand numberof trades,
bothforequitiesandderivativestrading.
 NSE has a market capitalization of US $1.48 Trillion as on Sept
2014.
 Ranks 13 at world’s Largest Stock Exchanges by their
Market Capitalization behind BSE.
 It has nearly 1700 Listed Company.

16. Products of
NSE
Equity
Equities
Indices
Mutual Funds
Exchange
Traded Funds
Initial Public
Offerings
Security
Lending
Derivatives
Equity
Derivatives
Currency
Derivatives
Interest Rate
Futures
Debt
Retail Debt
Market
Wholesale
Debt Market
Corporate
Bonds

17.  NSE has the following major segments of the capital
market:
 Equity
 Futures and Options
 Retail Debt Market
 Wholesale Debt Market
 Equities: NSE started trading in the equities segment on
November3,1994.
 Within ashortspan of 1 yearbecamethelargestexchange in India
intermsofvolumestransacted.

18. FuturesandOptions:
 Derivatives trading on NSE commenced on June 12, 2000 with
futurestradingonS&PCNXNiftyindex.
 the product base has been increased to include trading in futures
and options on S&P CNX Nifty index, CNX IT index, Bank Nifty
indexandsinglesecurities.

19. RetailDebtMarket:
 View toencourage widerparticipation of all classesof investorsacross
the country (including retail investors) in government securites, the
government, RBI and SEBI have introduced trading in government
securitiesforretailinvestors.
WholesaleDebtMarket:
 The wholesale market segment deals in fixed income securities .The
wholesaledebtmarket(WDM)segmentof theexchangecommenced
operationsonJune30,1994.
NSE became the first stock exchange to get approval for interest rate
futuresasrecommendedbySEBI-RBIcommittee,on31st August2009.
a future contract based on 7% 10 year GOI bond (NOTIONAL) was
launchedwithquarterlymaturities.

21. Indices
An Index is used to give information about the price
movements of products in the financial, commodities or
any other markets.
Major Indices of NSE
 S&P CNX NIFTY
 CNX NIFTY JUNIOR
 CNX 100 (S&P CNX NIFTY +CNX NIFTY JUNIOR)
 CNX IT
 BANK NIFTY
 S&P CNX DEFTY
 CNX MIDCAP
 NIFTY MIDCAP 50

22. S&P CNX NIFTY
 Itisawelldiversified50stockindexaccountingfor23sectorsof the
economy
 It is used for a variety of purposes such as benchmarking fund
portfolios,indexbasedderivativesandindexfunds.

23. CNX NIFTY JUNIOR
 Thenextrungof liquidsecuritiesafterS&PCNXNiftyistheCNXNifty
Junior. It may be useful to think of the S&P CNX Nifty and the CNX
NiftyJuniorasmakingupthe100mostliquidstocksinIndia.

24. S&P CNX 500
 S&P CNX 500 isIndia’sfirstbroad based benchmark of theIndian
capitalmarket.
 It represents about 90% of the Free Float Market
Capitalization and about 87% of the total turnover on the
NSE as on Sept 30, 2010.

25. Definition of 'Free-Float Methodology'
 A method by which the market capitalization of an index's
underlying companies is calculated. Free-float methodology
marketcapitalizationiscalculated bytaking theequity'spriceand
multiplying it by the number of shares readily available in the
market.
 Instead of using all of the shares outstanding like the full-market
capitalization method, the free-float method excludes locked-in
sharessuchasthoseheldbypromoters andGovernment.
Formula:-
FreeFloat=Shareprice*(ShareOutstanding–LockedShares)

26. NIFTY MIDCAP 50
 The primary objective of the Nifty Midcap 50 Index is to capture the
movement of themidcapsegmentof themarket. Itcan alsobeused
forindex-basedderivativestrading.

27. Market Trend and Analysis
Business Growth in Capital Market Segment
Month/
Year
No. of Co.
Listed
No. of
trading
days
No. of
Securities
traded
No. of
trades
(lakhs)
Turnover
(crores)
Average
Daily
Turnover
(crores)
Market
Capitalisat
ion
(crores)
2009-10 1,470 244 1,968 16,816 4,138,024 16,959 6,009,173
2008-09 1,432 243 1,327 13,651 2,752,023 11,325 2,896,194
2007-08 1,381 251 1,264 11,727 3,551,038 14,148 4,858,122
2006-07 1,228 249 1,191 7,846 1,945,285 7,812 3,367,350

28. AnalysisoftheAboveChart
 Companies Listed: As compared to previous years, there is
significant growth in number of companies listed in the capital
marketsegmentof NSE.
 No. of Securities Traded: With the increase, in companies
listed, despite other factors influencing the market transactions,
numberofsecuritiestradedinalsohaveincreasedwiththetime.
 No. of Trades: From the financial year 2006-2007 to that of
2009-2010 number of trades have increased the double in
amountsignalingapositivegrowth.
 Total Turnover: Total turnover have increased four times from
FY2006-07toFY2009-10.
 Market Capitalization: The amount of market capitalization
hasdoubledinFY2009-10ascomparedtothatof FY2006-2007.

29. Business Growth in Derivatives Segment
Month/Year Index
Futures
Turnover
(crores)
Stock
Futures
Turnover
(crores)
Index
Options
Turnover
(crores)
Stock
Options
Turnover
(crores)
Total
Turnover
(crores)
Average
Daily
Turnover
(crores)
2010-2011 3554400.03 4731045.50 14272415.14 883165.68 23441026.32 110570.88
2009-2010 3934388.67 5195246.64 8027964.20 506065.18 17663664.57 72392.07
2008-2009 3570111.40 3479642.12 3731501.84 229226.81 11010482.20 45310.63
2007-2008 3820667.27 7548563.23 1362110.88 359136.55 13090477.75 52153.30
2006-2007 2539574 3830967 791906 193795 7356242 29543

30. Analysis
 Index Future Turnover: The amount in crores on the Index
Future Options of Derivative segment of NSE has shown
significant growth of 1.39 times from FY 2006-07 to that of
FY 2010-11.
 Stock Futures Turnover: Whereas, the Stock Future
Turnover has shown growth of 1.23 times from FY 2006-07 to
that of FY 2010-11.
 Index Options Turnover: The Index Options Turnover has
shown 17.89 times growth from FY 2006-07 to FY 2010-11.
 Stock Options Turnover: Whereas, Stock Options
Turnover has shown growth of 4.56 times from FY 2006-07
to FY 2010-11.
 Total Turnover: The growth rate when evaluated from FY
2006-07 to FY 2010-11 shows a positive growth of 3.18 times.
 Average Daily Turnover: The Average Daily Turnover on
Derivative Segment of NSE has shown growth of 3.75 times
from FY 2006-07 to 2010-11.

31. NSE MILESTONESJanuary, 2011 NSE receives "Financial Inclusion" Award.
July, 2011 Commencement of trading in 91 Day GOI Treasury Bill - Futures
August 2011 Launch of derivatives on Global Indices
September 2011 Launch of derivatives on CNX PSE and CNX Infrastructure Indices
December 2011 NSCCL Rated “CCR AAA” for fourth consecutive year - 28th Dec 2011
March 14, 2012 NSE launches “EMERGE” - SME Platform
March 22, 2012 NSE and India Post start Unique Financial Inclusion Initiative "Jagruti"
May 03, 2012 Futures and Options contracts on FTSE 100
June 27, 2012 NSE launches financial literacy initiative ' Jagruti' in Mohali, in partnership
with India Post
Septemebr 18, 2012 NSE launches SME operations
January 03, 2013 NSCCL Rated CCR AAA for fifth consecutive year
January 10, 2013 Agreement on Launch of S&P CNX Nifty Futures in Japan
May 13, 2013 NSE launches the first dedicated Debt Platform on the Exchange
January 21, 2014 NSE Launches ‘NSE Bond Futures II’
Feb 26, 2014 NSE Launches NVIX Futures – Futures on India VIX index.
March 24, 2014 Commencement of trading of CNX Nifty Futures on OSE.

32. BSE MilestonesDate BSE Milestones
11th Feb 2014 Launch of Institutional Trading Platform on BSE SME
28th Jan 2014 Launch of Interest Rate Futures (BSE –IRF)
28th Nov 2013 Launch of Currency Derivatives (BSE CDX)
19th Feb 2013 BSE enters into Strategic Partnership with S&P Dow Jones Indices
30th Mar 2012 BSE launched trading in BRICSMART indices derivatives
13th Mar 2012 Launch of BSE - SME Exchange Platform
22nd Feb 2012 Launch of S&P BSE-GREENEX to promote investments in Green India
15th Jan 2011 Co-location facility at BSE - tie up with Netmagic
7th Jan 2011 BSE Training Institute Ltd. with IGNOU launched India's first 2 year full time MBA
program specializing in Financial Market
17th Nov 2011 Maharashtra and United Kingdom Environment Ministers launched Concept Note for
S&P BSE Carbon Index

33. SENSEX HIGHLIGHTS

34. SENSEX21,000
 5November2010–TheSENSEXon8January2008crossedthe21,000
mark for the first time, reaching an intra-day peak of 21,078 points,
beforeclosingat20,873.However,itwasnotuntil5November2010that
the SENSEX closed at 21,004.96, for its first close above 21,000 points.
This record would stand for nearly three years, until 30 October 2013,
whentheSENSEXclosedat21,033.97points.
 19February2013–SENSEXbecomesS&PSENSEXasBSEtiesupwith
Standard and Poor's to use the S&P brand for SENSEX and other
indices.
 13March2014-TheSENSEXcloseshigherthantheHang SengIndex,
to become the majorAsian stock market index with the highest value,
forthefirsttimeever.

35.  SENSEX 22,000
 24 March 2014 – The SENSEX on 10 March 2014 crossed the
22,000 mark for the first time during intra-day trading.
However, it was on 24 March 2014 that the index finally
closed above the milestone at 22,095.30
 SENSEX 23,000
 9 May 2014 - The SENSEX crossed record 23,000 level for the
first time, but close just short of the milestone level, on 9
May 2014. The index would close well above the 23,000 mark
during the following session.
 12 May 2014 - The SENSEX closed at its record all time high
of 23,551,a rise of 2.42%(+556.77 points) intraday due to
continued fund inflows on hopes of a stable government.

36.  SENSEX 25,000,
 16 May 2014 - The SENSEX crossed record 25,000 level for the
first time, on 16 May 2014 and reached its peak of 25,364.71 due to
winning of the BJP led NDA government by a staggering record
marginal difference of all times. However, it closed well below the
25,000 mark. Still, the index closed at its all time high of 24,121.74,
for its first close above 24,000 points.The SENSEX closed at
25,019.51, for its first close above the 25,000 milestone on 5 June
2014
 SENSEX 26,000,
 7 July 2014- The SENSEX crossed record 26,000 level for the first
time on 7 July 2014 and reached its peak of 26,123.55, before
closing slightly lower at 26,100.08, in anticipation of strong
reformatory budget by the new government.
 SENSEX 27,000,
 2 September 2014 - The SENSEX closed at 27,019.39, for its first
close above the 27,000 level, on 2 September 2014.This is the sixth
1000-point milestone the index has crossed in 2014, tying a record
set in 2007.

37.  SENSEX 24,000,
 13 May 2014 - TheSENSEXcrossed record 24,000 level forthefirst
time, on 13 May 2014 and reached its peak of 24,067.11 due to
sustained capital inflows by foreign funds at the domestic bourses
and widespreadbuying byretailinvestorsafterexitpollsshowing the
BJP-led NDA forming the government lifted the key indices to new
highs.Howeveritclosedatalittlelowat23,905points.

38. BIGGEST LOSERS IN THE STOCK
MARKET

40. FUTURE PREDICTIONS OF INDIAN
BOURSES

41.  The Nifty index could touch the 1,25,000 mark in the next
15years,saysbillionaireinvestorRakeshJhunjhunwala.
 HealsobelievesthatIndiacouldwitnesseconomicgrowth
at a rate faster than China in three four years. The savvy
investor expects inflation which has been a cause for
concern for Reserve Bank of India governors in recent
years–tofall tofourpercentinthenextfewyears, asglobal
oilpricesremainsluggish.
 I see no reason why the Nifty cannot grow more
than what it has in the past ten years. It could grow
at least 10-12 times and be at 1,25,000 in 2030.” If
earnings grow at 18 percent, in 15 years they would
grow 15 times.

42. Example as to How Stock Market can
enhance the Returns
 Infosys came out with IPO at Rs.95 per share.If you have invested
Rs.10000 you would haveallotted 105 shares. Thecompany's Bonus
historyanddevelopmentofshareisasfollows:-
 1986:- 1:1 means one share has become 2 shares , also it split(in
2000) its face value from Rs.10 to Rs.5, so 2 shares has become 4
shares.
 1989:-Bonus:-1:14hasbecome8shares
 1991:-1:18hasbecome16shares
 1992:-1:116hasbecome32shares
 1994:-1:132hasbecome64shares

43. Continued….
 19971:164hasbecome128shares
 19991:1128hasbecome256shares
 20053:1256hasbecome768shares
 20071:1768 hasbecome1536"of Rs. 5Facevaluewhosemarket
pricetodayisRs.3889.
 1 share of Infosys has become 1536 shares and your Rs. 10000
bought105sharesbecametoday105X1536shares
 Total value of Rs.10000 invested= 1536 X 105 X 3889 = Rs.
62,72,17,920 i.e62crores72lakhs17thousand920rupeesonly.

44. Market Analysis from Last 5 yrs
 Markets seem to have done almost nothing in last 5 years
(2008-2013).
 We analysed Nifty’s data for last 22+ years (1990-2013).
We checked this data for two things:
 Returns during last 5 years (for everyday since 1995)
 Returns during next 5 years (for everyday till 2008)

46. Security Markets- Growth of IPO’s In INDIA
 The Initial Public Offering (IPO) market in India has been small
comparedtoNYSEandNASDAQ,raisingUS$300millionin2013and
US$1.4billionin2012.
 Before2013, Indiancompanieswerenotallowed tolisttheirsecurities
internationallywithoutfirstcompletinganIPOinIndia.
 In2013,thesesecuritylawswerereformedandIndiancompaniescan
now choose where they want to list first - overseas, domestically, or
concurrently.
 Further, security laws have been revised to ease overseas listings of
already listed companies, to increase liquidity for private equity and
international investorsinIndiancompanies

47. P/E Ratio of Indian Markets in July 2014 - Is It
Telling Us Something?
 Nifty 50’s P/E multiple crossed 21 after almost 3 years.
Surprisingly, last it stood past 21 was also on July 7th
(2011). That’s exactly 3 years back!
 Long term analysis (starting end of 1998) of Nifty’s P/E
ratio tells the following story...

48. Last 3yrs Means
from 2011-2014
Last 5 Yrs means from 2009-
2014

49.  We all know its common sense to buy low (Low PEs)
and sell high (High PEs). And we also know that its
difficult to do it. So if you go out and buy the index as
whole when P/E multiples are less than 12 (quite low),
then on an average, your probable 3 year and 5 year
returns will be 39.5% and 29% respectively.

 Similarly for index-buying during P/E multiples being
in between 12 and 16, the 3 and 5 year returns are 28%
and 25% respectively.

 But we are currently in the band of 20-24. And this is
not a cheap market at all. As per past data, your 3 year
returns and 5 years returns look bleak at 4% and 7%.

50. Nifty in 2012 Versus Other Country Indexes

51.  India’s Nifty still counts for slightly better performance
than the S&P 500 (US) for 2012, with a 12.2% return
versus the S&P’s 11.3%.

52. Conclusion
 Indian Markets has been booming in the recent times since the
newgovthastakenpower. TheFII’shavePumped Nearly96000
Cr (on a 6 months Avg) into the Indian Stock Market.
Opportunity Still exists for many to still invest and enjoy the
upcoming returns. The Current trend seems to be a Little
Unstableand an Correction isexpected intheMarketverysoon
andoncetheMarketStabilizesdoexpectaBullishRun.