Stock market is not a luck game, it depends on your understanding, logic, statistics and long thinking.

1. Players in Stock Market
10/13/2016 1
Nishigandha Berde & Charmi Chheda
(MAPR)

2. What is Stock Market?
• Stock is where Shares in corporations are issued and traded.
• Is one of the most vital component of a free market economy.
• It is also known as Equity market
• It performs two important functions
• It can be split into two main sections- Primary market and the
secondary market.
10/13/2016 2
Nishigandha Berde & Charmi Chheda
(MAPR)

3. Key strengths of Stock market India
• Trading of India stock market take place in two Stock
Exchanges – Bombay Stock Exchange and National Stock
Exchange.
• BSE has been existence since 1875 and NSE was founded in
1992 and started trading in 1994.
• Both of the exchanges follow same trading mechanism ,
trading hours and settlement process.
• The market regular and Securities and Exchange board of India
– plays an important role in the management of the stock
market India.
10/13/2016 3
Nishigandha Berde & Charmi Chheda
(MAPR)

4. • Sensex and the S &P CNX Nifty are the India’s main market
indexes.
• Sensex- is a stock market index of 30 well established and
financially sound companies listed in BSE.
• Nifty – is the indicator of 50 major companies on the NSE.
• Investors , Issuers , Intermediaries , Regulators are important
element of India Stock market.
10/13/2016 4
Nishigandha Berde & Charmi Chheda
(MAPR)

5. How Does Share market works?
10/13/2016 5
Nishigandha Berde & Charmi Chheda
(MAPR)

6. • A company get listed in the Primary market through an
Initial Public offering and further the stocks issued in the
Primary market are allotted to investors .
• The stocks issued are traded by the investors in the
secondary market.
•Stock brokers and brokerage firms – as a intermediary
between investors and Stock exchange.
10/13/2016 6
Nishigandha Berde & Charmi Chheda
(MAPR)

7. How the order to the exchange
processed further?
10/13/2016 7
Nishigandha Berde & Charmi Chheda
(MAPR)

8. How to invest in shares?
• There are 5 steps which to be followed to invest money in share
market .
10/13/2016 8
Nishigandha Berde & Charmi Chheda
(MAPR)

9. 10/13/2016
Nishigandha Berde & Charmi Chheda
(MAPR)
9
There are over 60 major stock exchanges in the world with
market valuation of total $69 trillion

10. Top stock market players in the
world
• New York Stock Exchange
• National Association of Securities Dealers Automated
Quotations
• London Stock Exchange group
• Japan Stock Exchange
• Shanghai Stock Exchange
• Hong Kong Stock Exchange
10/13/2016 10
Nishigandha Berde & Charmi Chheda
(MAPR)

11. New York Stock Exchange:
 Leading Stock Exchange in the world.
 Founded on 17th May 1792
 Is also known as Big Board
 NYSE is owned by Intercontinental Exchange and regulated by
Securities and Exchange commission.
10/13/2016 11
Nishigandha Berde & Charmi Chheda
(MAPR)

12. • NASDAQ Stock Exchange:
 NASDAQ was created by National Association Securities Dealers.
 Is the second largest exchange in the world by market capitalization.
 It was founded in 4th February 1971.
 Worlds 1st electronic Stock market.
 The term “NASDAQ”is also used to refer to the Nasdaq Composite, an
index of more than 3,000 stocks listed on the Nasdaq exchange that
includes the world’s foremost technology and biotech giants such as
Apple, Google, Microsoft, Oracle, Amazon, Intel and Amgen.

13. London Stock Exchange:
 Primary Stock in U.K and largest in Europe
 Originated in 1773, the regional exchanges where merged in
1973 to form the Stock Exchange of Great Britain and Ireland ,
later renamed London Stock Exchange.
 Most international of all stock exchanges with 350 companies
from more than 50 countries.
10/13/2016 13
Nishigandha Berde & Charmi Chheda
(MAPR)

14. Japan Stock Exchange Group :
 An Asian financial services corporation that operates
multiple securities exchanges including Tokyo Stock
Exchange and Osaka Securities Exchange.
 It was formed by the merger of the two companies on January
1, 2013.
 The group provides and operates a marketplace for the trading
of equities, futures, and options.
10/13/2016 14
Nishigandha Berde & Charmi Chheda
(MAPR)

15. Shanghai Stock Exchange:
 Shanghai Stock Exchange is the world's 5th largest stock
market.
 Is not entirely open to Foreign investors
 Shanghai Clearing House provides security for financial market
participants, and efficient clearing services development
purposes.
10/13/2016 15
Nishigandha Berde & Charmi Chheda
(MAPR)

16. Hong Kong Stock Exchange:
 It origins to the founding of China's first formal securities market, the
Association of Stockbrokers in Hong Kong, in 1891.
 A second market opened in 1921, and in 1947 the two merged to
form the Hong Kong Stock Exchange.
 Is one of the larger markets in Asia
 The Hong Kong Stock Exchange merged with the Hong Kong
Futures Exchange and the Hong Kong Securities Clearing Company
in 2000 to form Hong Kong Exchanges and Clearing Ltd., a publicly
traded company.
10/13/2016 16
Nishigandha Berde & Charmi Chheda
(MAPR)

17. People
• Optimistic (Bull)
• Pessimistic (Bear)
• Stag
10/13/2016 17
Nishigandha Berde & Charmi Chheda
(MAPR)

18. Bull Market
• A bull market is where people are finding jobs, economy is
rising, GDP is increasing & stock market is increasing.
• Number of share traded and companies entering the stock
market is also high.
• Bull markets are characterized by optimism, investor
confidence and expectations that strong results should
continue.
• Bull does not last long and is also quiet risky and prices of
stock in this period rise continuously.
10/13/2016 18
Nishigandha Berde & Charmi Chheda
(MAPR)

19. • Ideally, you'd like to buy the stock in the lower range and collect on
earnings as the stock continues to soar
• Any losses are viewed as minimal or temporary within a bull market.
• For example, Facebook has a bull market where it’s stock are
continuously increasing. When it was started the stock price of FB
was just $38 but today it has increased to $125.
10/13/2016 19
Nishigandha Berde & Charmi Chheda
(MAPR)

20. 10/13/2016 20
Nishigandha Berde & Charmi Chheda
(MAPR)

21. • Another example can be Gold prices in India. Since 90s they have
been increasing since 1964 where price was ₹ 63.25 to current rate
of ₹31K.
10/13/2016 21
Nishigandha Berde & Charmi Chheda
(MAPR)

22. Bear Market
• It is period when there is recession, stocks are falling &
economy is bad.
• If the market falls by 20% it has entered into the bear market
period.
• Investors face tough choice to buy profitable stocks. If a
person is pessimistic, believing that stocks are going to drop,
he or she is called a "bear" and said to have a "bearish
outlook".
10/13/2016 22
Nishigandha Berde & Charmi Chheda
(MAPR)

23. • Investors can make gains in a bear market by short selling. This
technique involves selling borrowed shares and buying them back at
lower prices.
• Bear Market example can be Viacom Inc. which was as high as $85
but fell to $41 in 3 years of period.
10/13/2016 23
Nishigandha Berde & Charmi Chheda
(MAPR)

24. 10/13/2016 24
Nishigandha Berde & Charmi Chheda
(MAPR)

25. Difference
10/13/2016 25
Nishigandha Berde & Charmi Chheda
(MAPR)

26. Stag Market
• A stag specifically refers to a speculator who buys and sells
stocks in short time frame's to make quick profits.
• A stag investor assumes that the price of a stock will rapidly
increase over the short-term, within the first few hours or days.
Short term profit and low risk business.
• Stag is a smart player but sometimes it involves risks too.
10/13/2016 26
Nishigandha Berde & Charmi Chheda
(MAPR)

27. 10/13/2016 27
Nishigandha Berde & Charmi Chheda
(MAPR)

28. Duration of Bull & Bear markets
in India
• The equity market in India is volatile because Indian equities tend to
move strongly upward within a short period only to crash violently
quickly as well. Reasons for such volatility:
1. The debt market (bond market) is undeveloped and is very tiny. As a result
much of the capital flows into equities driving volatility.
2. Retail investor participation in India is still very low. By one estimate it is just
3.3%. As a result, major investors such as institutions, mutual funds,
wealthy individuals control the direction of the market.
10/13/2016 28
Nishigandha Berde & Charmi Chheda
(MAPR)

29. 3. Indian companies, including large-caps, traditionally have low
dividend yields. The dividend yield has been less than 1.50% for
many decades. Due to the low payouts, investors buy stocks hoping
for price appreciation rather than yields. So during bull markets
investors go rush into stocks driving prices ever higher while during
bear markets the low yields on stocks offer not much help to hold on
to them or depend on them for a steady stream of income.
10/13/2016 29
Nishigandha Berde & Charmi Chheda
(MAPR)

30. •Here it clearly shows that from May 2003- Jan 2008, Indian
markets rose as high as 622%
•It fell to -62% the same year.
•Also every eight year sensex has declined by more than 50%.
10/13/2016 30
Nishigandha Berde & Charmi Chheda
(MAPR)

31. Duration of Bull & Bear market in
the World (Since 1929)
A BULL MARKET is defined by the S&P500 Rising at least 20%. Here
is the upshot of BULL MARKET HISTORY:
• Since 1929 there have been 25 BULL Markets
• The average Bull Market period lasted 31 months
• The average Bull Market gain was +104% (The smallest gain was +21% in
2001, and the largest gain was +582% registered in period 1987-2000)
• Average frequency of Bull Markets is every 3.4 years
10/13/2016 31
Nishigandha Berde & Charmi Chheda
(MAPR)

32. • The present Bull Market is quite long with 7 years to date vs. the 3.4
year average since 1929.
• The bull market that began in WW II and lasted well into the 1950s
had duration of 181 months for a colossal gain of 935.8 percent.
Golden years indeed. Again, the subsequent bear market was a
minor event of only six months for a decline of 22.3 percent.
• The bull market of the 1960s was less mighty than the 1950s, rising
only 143.7 percent over 77 months with an average annual gain of
14.9 percent.
10/13/2016 32
Nishigandha Berde & Charmi Chheda
(MAPR)

33. 10/13/2016 33
Nishigandha Berde & Charmi Chheda
(MAPR)

34. A BEAR MARKET is defined by the S&P500 falling at least 20%. Here
is the upshot of BEAR MARKET HISTORY:
• Since 1929 there have been 25 Bear Markets
• The average Bear Market loss was -35% (The smallest loss was -21% in
1949, and the largest loss was -62% registered in 1932)
• Average frequency of Bear Markets since 1929 is every 3.4 years
10/13/2016 34
Nishigandha Berde & Charmi Chheda
(MAPR)

35. • The last Bear Market ended in March 2009. Therefore, another
Stocks Bear Market looms - as the present BULL MARKET is quite
long in the tooth with 7 years to date.
• The average bear market has seen losses of 23% and has lasted 14
months.
• Two out of the three worst bear markets have happened since 2000
(stocks fell 43% from 2000-early 2003 and the market declined 51%
from 2008-2009).
10/13/2016 35
Nishigandha Berde & Charmi Chheda
(MAPR)

36. 10/13/2016 36
Nishigandha Berde & Charmi Chheda
(MAPR)

37. 10/13/2016 37
Nishigandha Berde & Charmi Chheda
(MAPR)

38. Thank you
10/13/2016 38
Nishigandha Berde & Charmi Chheda
(MAPR)

39. Sources
• Google
• NSE/BSE
• Various news articles
• NASDAQ
• Different websites
10/13/2016
Nishigandha Berde & Charmi Chheda
(MAPR)
39