INTRODUCTIONStock markets arehighly correlated in the era ofglobalisation. Theworld has became a small global village.
IntroductionNew York Stock Exchange.•Origin - May 17, 1792,•Worlds largest stock exchange by market capitalization of itslisted companies at US$14.242 trillion as of Dec 2011.•Average daily trading value was approximately US$153 billion in2008.
INTRODUCTIONNASDAQ•The NASDAQ Stock Market originally stood for NationalAssociation of Securities Dealers Automated Quotations.•Founded 1971 by the National Association of SecuritiesDealers(NASD)•Second-largest stock exchange by market capitalization in theworld.
BSEThe Bombay Stock Exchange -oldest exchange in Asia.Bombay Stock Exchange (BSE), (Bombay Śhare Bāzaār) is astock exchange located on Dalal Street, Mumbai, Maharashtra,India.Established in 1875, BSE Ltd. (formerly known as BombayStock Exchange Ltd)BSE’s popular equity index - the SENSEX
CASE STUDYThe case study has been conducted by lookinginto the nature of relationship between the dailyshare price in BSE and NSE on the one handand Nasdaq and New York Stock Exchange onthe other, for 1999-2000 through 2000-2001. Source : Deutsche Börse’s
CASE STUDYUnidirectional casualty between Nasdaq andBse or Nse.The same relationship as well as direction ofinfluence also holds good for the technologysegment of the New York Stock Exchange andBSE or NSE. However, domestic prices of technology stocksand overall domestic share prices were found tobe independent of each other
CORRELATION BETWEEN BSE-SENSEX AND OTHER SELECT INDICESIndices Correlation T test results level of correlationSensex & Dow ModerateSensex & NYSE StrongSensex & NASDAQ WeakSensex & S&P500 WeakSensex & HangSeng StrongSensex & Nikkei 225 WeakSensex & FTSE100 ModerateSensex & SSE Composite index Strong
ConclusionLowest correlation was recorded betweenSensex and NASDAQ.The correlation of Indian stock market isweakwith NASDAQ and S&P500 of US market andwith Nikkei225 of Japanese stock marketHighest correlation was recorded betweenSensex and Hang Seng.
BSE TECk AND NASDAQBSE TECHBSE TECk index was launched by Bombay Stock Exchangeprovide a reliable index for benchmarking theperformance of the TMT (TechnologyMedia and Telecom) sectors in IndiaNASDAQNASDAQ stands for National Association of Securities DealersAutomated QuotationThe NASDAQ Composite Index is the mostwidely tracked technology stock indexin the world
WHEN COMPARED THE BSE TECk AND NASDAQIt was proved that-1. Both NASDAQ and BSE TECk financial series are nonstationary2. Both the series are co-integrated3. NASDAQ use to forecast BSE TECk4. BSE TECk does not use to forecast NASDAQ
CONCLUSION• So we can conclude that movement in NASDAQ causes movementin BSE TECk.•BSE TECk and NASDAQ are positively correlated• Estimates that calculated will rarely match with the absolutevalue that BSE TECk may reach a day after NASDAQ haschanged on prior date.• Consequently, the estimated values should be used to identifytrend and not judge absolute value of BSE TECk on a particular day.
INTRODUCTION LONDON STOCK EXCHANGEThe London Stock Exchange,or LSE, was formed around 300years ago, and today listsabout 2,500 companies from70 countries. Many large U.S. companieslisted on American exchangesalso list on the London StockExchange. General Electric is oneexample.
LISTING REQUIREMENTS OF STOCKEXCHANGE LISTING BSE LSE REQUIREMENTS Market Capitalization 250 million $700000 Number of float 25% 25% shares Accounting Standard Indian GAAP IFRS Timeline on going 6 months 4 – 24 months public Equity market listing Rs. 20000 GBP million fees
FTSE 100 Index ChartFTSE 100 Index 5,937.33 -8.52 (-0.14%) December 2011 to December 2012
Bse Sensex Chart Bse Sensex 19,229.26-126.00 (-0.65%)December 2011 to December 2012
RECENT EVENTSRecent market conditions have affected investor confidenceand the number of new companies joining the markets acrossthe globe. Despite this, investor appetite in the Indian economyand Indian companies has remained strong and continues togrow.There has been a significant increase in the trading of Indianpaper in London this year. Indian companies can takeadvantage of this opportunity, it is a strong sign of the growinginvestor interest for Indian companies in London and makes aLondon listing even more attractive than before.
CONCLUSION•The results indicate that macro economicsfactor have significant affect on stockexchange.•It may affect the different industry positivelyor negatively.•Two industries namely Building Materials andMerchants and Engineering suffer because ofexchange rate movements.
SHANGHAI STOCK EXCHANGELOCATION SHANGHAI, CHINAFOUNDED 1891RE- ESTABLISHED 1990KEY PEOPLE GENG LIANG---CHAIRMAN ZHANG YUJUN--- PRESIDENTCURRENCY RENMINBI ( RMB )1 RENMINBI 8.72 INDIAN RUPEE
FACTORS THAT BENEFIT BSE AGAINST SSE• Tax incentives• Predictabiity• Transparency• Principles of international guidelines
FACTORS IN WHICH INDIA LAGS BEHIND• Nation of high savers• High capitalisation• Listed chinese companies are huge by Indian standards• Less of Foreign direct investment
INDIA AND CHINA’S PERFORMANCE IN THE LAST 5 YEARS
REASONS FOR CHANGE IN LAST 5 YEARSBetter corporate profitabilityIndia’s equity capital markets are more developed than China’sGreater exposure to the private sectorIndia’s driver of economic growth is consumption instead of volatile exports.
Effects on global economy and India India and china are the two emerging economies of Asia Reduced investments by the global investors in Asia. Lower confidence among global investors. Reduced global growth rate.