National Stock Exchange
National Stock Exchange
National Stock Exchange
CONTENTS
Establishment
Purpose
Markets
Trading Hours
Index
National First Fifty
companies
CNX SNP Junior
CNX 100
CNX-SNP 500
Listing
Indicator
Advantages
Market Segment
Innovations 1
ESTABLISHMENT
2
PURPOSE
Establishing a nationwide trading facility for all types
of securities
Ensuring equal access to investors all over the
country through an appropriate communication
network
Providing for a fair, efficient and transparent
securities market using electronic trading system
Enabling shorter settlement cycles
Meeting up with international benchmarks and
standards
3
MARKETS
Currently, NSE has the following major segments
of the capital market:
Equity
Futures and Options
Retail Debt Market
Wholesale Debt Market
Currency future
4
TRADING HOURS
5
INDEX
S&P CNX Nifty Standard & Poor's CRISIL
NSE Index)
CNX Nifty Junior
CNX 100 (= S&P CNX Nifty + CNX Nifty
Junior)
S&P CNX 500 (= CNX 100 + 400 major
players across 72 industries)
CNX Madcap (introduced on 18 July 2005
replacing CNX Madcap 200)
6
NATIONAL FIRST FIFTY
The S&P CNX Nifty ( Nifty 50 or simply
Nifty) is a composite of the top 50 stocks
listed on the National Stock Exchange
(NSE), representing 24 different sectors of
the economy.
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NATIONAL FIRST FIFTY
COMPANIES
TATA Motors
Ranbaxy
TATA steel
Grasim Inds.
Axis bank
GAIL
NTPC
Siemens
BPCL
IDBI
CIPLA
HERO HONDA Etc….
8
THE CNX NIFTY JUNIOR
The CNX Nifty Junior is an index for companies
on the National Stock Exchange of India.
It represents the next rung of liquid securities after
S&P CNX Nifty.
It consists of 50 companies representing
approximately 10% of the traded value of all stocks
on the National Stock Exchange of India.
The CNX Nifty Junior is owned and operated by
India Index Services and Products Ltd.
It is quoted using the symbol NSMIDCP.
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S&P CNX 500
The S&P CNX 500 is India’s first broad-based
stock market index of the Indian stock market.
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INDICATIONS
An upbeat economy is usually reflected in a
strong performance of the Nifty Index
A rising index is also indicative that the investors
are gung-ho about the future
The Nifty Index is based upon solid economic
research
It is internationally respected and recognized as
a pioneering effort in providing simpler
understanding of stock market complexities
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ADVANTAGES OF TRADING AT
NSE
Integrated network for trading in stock
market of India
Fully automated screen based system that
provides higher degree of transparency
Investors can transact from any part of the
country at uniform prices
Greater functional efficiency supported by
totally computerized network
13
MARKET SEGMENTS
The Wholesale Debt Market segment provides the
trading platform for trading of a wide range of debt
securities.
The Capital Market segment offers a fully automated
screen based trading system, known as the National
Exchange for Automated Trading (NEAT) system. This
operates on a price/time priority basis and enables
members from across the country to trade with enormous
ease and efficiency.
The Futures & Options segment of NSE provides trading
in derivatives instruments like Index Futures, Index
Options, Stock Options, Stock Futures and Futures on
interest rates.
14
INNOVATIONS
Being the first national, anonymous, electronic
limit order book (LOB) exchange to trade
securities in India. Since the success of the NSE,
existent market and new market structures have
followed the "NSE" model.
Setting up the first clearing corporation "National
Securities Clearing Corporation Ltd." in India.
NSCCL was a landmark in providing innovation on
all spot equity market (and later, derivatives
market) trades in India.
Co-promoting and setting up of National
Securities Depository Limited, first depository in
India
Setting up of S&P CNX Nifty.
15
NSE pioneered commencement of Internet Trading in
February 2000, which led to the wide popularization
of the NSE in the broker community.
Being the first exchange that, in 1996, proposed
exchange traded derivatives, particularly on an equity
index, in India. After four years of policy and
regulatory debate and formulation, the NSE was
permitted to start trading equity derivatives
Being the first and the only exchange to trade GOLD
ETFs (exchange traded funds) in India.
NSE has also launched the NSE-CNBC-TV18 media
centre in association with CNBC-TV18 a
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QUICK FACTS ABOUT NSE
Ranks 04th in the world, in terms of number of
transactions executed on a stock exchange,
after NASDAQ, NYSE and Shanghai SE.
Ranks 2nd in the world, in terms of the number
of contracts traded in Single Stock Futures.
Ranks 03rd in the world, in terms of no. of
contracts traded, in Stock index Futures
Ranks 2nd in Asia, in terms of no. of contracts
traded, in equity derivatives instrument.
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CERTIFICATIONS
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REQUIREMENT
DEMAT ACCOUNT
&
Trading Account
Companies
19
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SOURCES
www.nse-india.com
www.wikipedia.com
www.youtube.com
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THANK YOU FOR
PATIANCE
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Trends
07Jan – Fraud of Satyam
12jan – World bank bans WIPRO
13 April – Tech Mahindra buys satyam
25 may – Bharti MTNL talk
July 7 – FM presents Budget
Oct 23 – Longer trading hours
Dec 17 – Trading @ 9 Cleared
1st Jan - Implemented
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