Stock market presentation

2. •Stock market and share market essentially mean the same
thing. Both terms describe an exchange in which buyers and
sellers of stock or shares may trade in a market with high
liquidity
Is the Stock Market and Share
Market same?

3. Share:
•Share is a unit issued by a company at the
time of raising fund from the market. It is a
certificate issued to a person who applies for it
and is given at a value predetermined by the
company.
•It is the smallest unit of ownership that may be
bought or sold on or off an exchange.
Stock:
•Stocks in the reference of stock market are
the total number of shares a person has in
one company or in many companies.

4. •Stock market is an organised market, where
securities of govt, semi govt bodies and
corporate enterprises are brought or sold.
•It is established for the purpose of assisting,
regulating and controlling business in buying
selling and dealing in securities.
•In the stock market only those securities
listed in the stock exchange are transacted.
•Individuals alone can buy and sell securities.
Stock Market

5. 1.Primary Market:
•The first group of investors to whom a new issue
of a security is sold.
•The primary market consists of the issuer and the
first buyers of the issue.
•The primary market can be a time more volatile
than the secondary market because it is difficult to
determine the underlying value of new issues.
2. Secondary Market:
•A market where investors purchase securities or
assets from other investors, rather than from
issuing companies themselves.
•The national exchanges - such as the New York
Stock Exchange and the NASDAQ are
secondary markets.

Types of Stock Market

6. Market Conditions
Bull Market:
•A financial market conditions in which
prices of securities or group of
securities are rising or are expected to
rise.
•Bull markets are characterized
by optimism, investor confidence and
expectations that strong results will
continue.
Bear Market:
•It is a market condition in which the
prices of securities are falling.
•As investors anticipate losses in a bear
market and selling
continues, pessimism only grows

7. BLUE CHIP :
•The blue chips carry the highest value.
•Large, established firms with a long record of profit growth, dividend
payout and a reputation for quality management, products and
services are referred to as Blue Chip companies and their stocks are
Blue Chip stocks.
PENNY :
•Penny stocks are low-priced, speculative stocks that are very risky.
•These stocks are generally issued by the type of companies with a
short or erratic history of revenues and earnings.
INCOME :
•Income stocks are stocks that pay higher-than-average dividends over
a sustained period.
•These above average dividends tend to be paid by large, established
companies with stable earnings.
VALUE :
•A value stock is a type of stock that is currently selling at a low price.
•Companies that have good earnings and growth potential but whose
stock prices do not reflect this are considered value companies.
•Investors who buy value stocks believe that these stocks are only
temporarily out of favour and will soon experience great growth.

Types of Stocks

8. 1.Company decide to go public and raise fund from the
market and decide upon the Total amount to be raised
from the Market.
2.They get clarification from SEBI.
3.This amount is broken down in number of shares by
deciding the Face Value. As per the norms of the SEBI
the FV is to be multiple of 5. Normal practice is keeping
this at Rs10.
4.Then the No of shares to be introduced in the Market is
decided.
5.Depending upon the response of the Stock as IPO,
when it is opened on Secondary Market the price is
decided.
6.The combined collection of the firm from IPO and
Secondary Market operations becomes the Market
Capitalisation of the firm, from which a share of
Profitability is distributed among the share holders in the
form of Dividend
Procedure for listing in Stock Exchanges

9. •Market capitalization is often called as market
cap is a measurement of the size of a business
enterprise.
•It is the total dollar market value of all of a
company's outstanding shares calculated by
multiplying a company's shares outstanding
by the current market price of one share.
•The companies were divided into large-cap, mid-
cap, and small-cap based on the size of market
capitalization.
Large-cap: $10 billion–$100 billion.
Mid-cap: $1 billion–$10 billion.
Small-cap: $100 million–$1 billion.
Market Capitalization

10. The Top 10 Largest Stock Markets
Rank Exchange Name Country
Domestic Market
Capitalization(Billion
Dollars)
1
New York Stock
Exchange
United States 11,837
2
Tokyo Stock
Exchange
Japan 3,306
3 NASDAQ United States 3,239
4 Euro next
Belgium, France,
Holland, Portugal
2,869
5
London Stock
Exchange
United Kingdom 2,796
6
Shanghai Stock
Exchange
China 2,704
7
Hong Kong Stock
Exchange
Hong Kong 2,345
8
Toronto Stock
Exchange
Canada 1,608
9 BM & FBovespa Brazil 1,337
10
Bombay Stock
Exchange
India
1,306

11. •» Bombay Stock Exchange
•» National Stock Exchange
•» Regional Stock Exchanges
Ahmadabad
Bangalore
Bhubaneswar
Calcutta
Cochin
Coimbatore
Delhi
Guwahati
Hyderabad
Jaipur
Ludhiana
Madhya Pradesh
Madras
Magadh
Mangalore
Meerut
OTC Exchange Of India
Pune
Saurashtra Kutch
Uttar Pradesh
Vadodara
•
Stock Markets in India

12. Bombay Stock Exchange
TypeStock Exchange
LocationMumbai, India
Founded1875
OwnerBombay Stock Exchange Limited
Key peopleMadhu Kannan (CEO & MD)
CurrencyIndian rupee
No. of listings5,085
Market CapUS$1.8 trillion (Dec 2010)
VolumeUS$231 billion (Nov 2010)
Indexes
BSE SENSEX
BSE Small Cap
BSE Mid-Cap
BSE 500
Websitewww.bseindia.com

13. BSE SENSEX:
•The Bombay Stock Exchange SENSEX also referred to as BSE 30.
•It is a free-float market capitalization weighted index of 30 well-established and
financially sound companies listed on Bombay Stock Exchange.
BSE Mid-Cap:
•BSE Mid-Cap tracks the performance of scrips between 80 & 95% of
aggregate market capitalisation.
•It is also introduced to track the performance of companies with
relatively smaller market capitalization.
BSE Small-Cap:
•BSE Small-Cap index tracks the performance of remaining 5% scrips (95-100%).
•It is introduced to track the performance of companies with relatively smaller
market capitalization.
BSE-500:
•It represents more than 93% of the listed universe Companies with large market
capitalization.
BSE Indexes

14. Some Companies listed in BSE based on Market
Capitalization:
Company
Current Price
(Rs) % Change Volume Equity Face ValueMarket Cap (Rs Cr)
Reliance Inds. 834.50 -0.08 182987 3,274.00 10 2,73,215.30
Coal India Ltd. 380.00 +0.50 63994 6,316.36 10 2,40,021.68
ONGC 275.35 +5.86 1730408 4,277.76 5 2,35,576.24
Tata Consultancy 1,055.95 +1.53 92306 195.72 1 2,06,670.53
ITC Ltd. 199.25 +0.13 73787 773.81 1 1,54,181.64
Bharti Airtel 383.80 -0.85 64074 1,898.80 5 1,45,751.89
NTPC 168.05 +2.34 138190 8,245.46 10 1,38,564.96
Infosys 2,393.30 -0.51 71284 287.00 5 1,37,375.42
SBI 1,899.20 +0.06 266889 635.00 10 1,20,599.20
HDFC Bank 485.70 +0.25 47575 466.77 2 1,13,355.09
ICICI Bank 883.00 +0.82 112707 1,152.18 10 1,01,737.49
L & T 1,609.50 +1.22 101813 122.00 2 98,179.50
HDFC 666.55 +1.78 35362 293.99 2 97,979.52
NMDC Ltd. 238.00 +1.56 8225 396.47 1 94,359.86
Wipro Ltd 348.00 -0.01 67815 491.10 2 85,451.40
Bharat Heavy Ele 1,708.00 -0.13 34093 489.52 10 83,610.02
Indian Oil Corp 319.95 +1.19 72595 2,427.95 10 77,682.26
Hindustan Unilever L 347.25 -0.59 33974 216.07 1 75,030.31
MMTC Ltd. 712.00 +1.61 6023 100.00 1 71,200.00
Adani Enterprises Lt 591.00 +1.10 14438 109.98 1 64,998.18
Company Current Price (Rs) % Change Volume EquityFace ValueMarket Cap (Rs Cr)
Reliance Inds. 773.75 -2.68 1024225 3,274.00 10 2,53,325.75
ONGC 246.30 -2.20 508149 4,277.76 5 2,10,722.46
Tata Consultancy 1,062.40 -2.04 183366 195.72 1 2,07,932.93
Coal India Ltd. 300.90 -0.55 573715 6,316.36 10 1,90,059.27
Infosys 2,650.55 -2.67 111157 287.00 5 1,52,141.57
ITC Ltd. 192.85 -1.66 382925 777.30 1 1,49,902.31
Bharti Airtel 364.85 -3.70 948270 1,898.80 5 1,38,555.44
NTPC 156.65 +0.58 289635 8,245.46 10 1,29,165.13
SBI 1,654.30 -2.03 773312 635.00 10 1,05,048.05
HDFC Bank 426.70 -3.85 559277 467.66 2 99,775.26
HDFC 624.65 -2.10 181526 294.44 2 91,960.97
Wipro Ltd 365.05 -3.17 298019 491.50 2 89,711.04
ICICI Bank 726.95 -2.53 755878 1,152.47 10 83,778.81
Hindustan Unilever L 383.00 -0.51 155652 216.10 1 82,766.30
L & T 1,191.35 -2.85 509347 122.23 2 72,809.36
NMDC Ltd. 181.30 -4.38 49734 396.47 1 71,880.01
Indian Oil Corp 262.60 -3.47 101045 2,427.95 10 63,757.97
Bharat Heavy Ele 255.70 -3.58 539004 489.52 2 62,585.13
Reliance Petroleum L 130.85 +0.35 2233265 4,500.00 10 58,882.50

15. National Stock Exchange
TypeStock Exchange
LocationMumbai, India
Founded1992
Owner
National Stock Exchange of
India Limited
Key peopleRavi Narain (MD)
CurrencyIndian rupee
No. of listings1,552
Market CapUS$1.59 trillion (Dec 2010)
Indexes
S&P CNX Nifty
CNX Nifty Junior
S&P CNX 500
Websitewww.nse-india.com

16. S&P CNX Nifty:
•It is Standard & Poor's CRISIL NSE Index 50. Nicknamed Nifty 50 or simply
Nifty .
•It is the leading index for large companies on the National Stock Exchange of
India.
•The S&P CNX Nifty stocks represent about 60% of the total market capitalization
of the National Stock Exchange.
CNX Nifty Junior:
•It represents the next range of liquid securities after S&P CNX Nifty.
•It representing approximately 10% of the traded value of all stocks on the
National Stock Exchange of India.
S&P CNX 500:
•The S&P CNX 500 is India’s first broad-based stock market index of the Indian
stock market.
•The S&P CNX 500 represents about 96% of total market capitalization and
about 93% of the total turnover on the National Stock Exchange of India (NSE).
NSE Indexes

17. Some Companies listed in NSE based on Market
Capitalization:
Company Current Price (Rs) % Change Volume EquityFace ValueMarket Cap (Rs Cr)
Reliance Inds. 773.75 -2.68 1024225 3,274.00 10 2,53,325.75
ONGC 246.30 -2.20 508149 4,277.76 5 2,10,722.46
Tata Consultancy 1,062.40 -2.04 183366 195.72 1 2,07,932.93
Coal India Ltd. 300.90 -0.55 573715 6,316.36 10 1,90,059.27
Infosys 2,650.55 -2.67 111157 287.00 5 1,52,141.57
ITC Ltd. 192.85 -1.66 382925 777.30 1 1,49,902.31
Bharti Airtel 364.85 -3.70 948270 1,898.80 5 1,38,555.44
NTPC 156.65 +0.58 289635 8,245.46 10 1,29,165.13
SBI 1,654.30 -2.03 773312 635.00 10 1,05,048.05
HDFC Bank 426.70 -3.85 559277 467.66 2 99,775.26
HDFC 624.65 -2.10 181526 294.44 2 91,960.97
Wipro Ltd 365.05 -3.17 298019 491.50 2 89,711.04
ICICI Bank 726.95 -2.53 755878 1,152.47 10 83,778.81
Hindustan Unilever L 383.00 -0.51 155652 216.10 1 82,766.30
L & T 1,191.35 -2.85 509347 122.23 2 72,809.36
NMDC Ltd. 181.30 -4.38 49734 396.47 1 71,880.01
Indian Oil Corp 262.60 -3.47 101045 2,427.95 10 63,757.97
Bharat Heavy Ele 255.70 -3.58 539004 489.52 2 62,585.13

18. The stock market indexes are useful in a number of
ways to stock investors:
3.The market indexes provide an historical perspective
of stock market performance.
5.It provide a yardstick with which investors can
compare the performance of their individual stock
portfolios.
7.It acts as a forecasting tool. Studying the historical
performance of the stock market indexes, investors
can forecast trends in the market
Importance Of Indices