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Stock Market

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Stock Market

Draft

History
Earlier, there were 8 national and 21
regional stock exchanges in India.
After the SEBI (securities exchange
board of india) started tightening the
regulations, it closed down all regional
stock exchanges in India except the
Calcutta Stock Exchange.
The Calcutta Stock Exchange, which is
the oldest stock exchange in India, was
established in 1875.
The Bombay Stock Exchange (BSE) was
founded in 1875. The National Stock
Exchange (NSE) was founded in 1992.
The first stockbroker in India was
Pherozeshah Mehta, who was also the
first chairman of the Bombay Stock
Exchange.
The stock market in India is regulated
by the Securities and Exchange Board
of India (SEBI).
SEBI was established in 1988. It is
responsible for regulating the stock
market, the mutual fund industry, and
the insurance industry in India.

NSE

Type Stock Exchange


Location Mumbai,
Maharashtra
Founded 1992
Currency Rupees
No. of stocks 2133
listed
Market Cap 3.27 Trillion
Dollar
Main Indices NIFTY 50
NIFTY Next 50
NIFTY 500
BANK NIFTY
NIFTY -
National Stock Exchange FIFTY

NSE was incorporated in 1992. It was


recognised as a stock exchange by SEBI
in April 1993 and commenced
operations in 1994 with the launch of
the wholesale debt market, followed
shortly after by the launch of the cash
market segment.

NSE was the first exchange in the


country to provide a modern, fully
automated screen-based electronic
trading system which offered easy
trading facility to the investors spread
across the length and breadth of the
country.
NSE’s flagship index, the NIFTY 50,
the 50 stock index is used extensively
by investors in India and around the
world as a barometer of the Indian
capital markets. Nifty 50 index was
launched in 1996 by the NSE.

BSE

Type Stock Exchange


Location Mumbai,
Maharashtra
Founded 1875
Currency Rupees
No. of stocks 5307
listed
Market Cap 3.5 Trillion Dollar
Indices BSE Sensex
BSE SmallCap
BSE MidCap
BSE LargeCap
BSE 500
Sensex-
Stock Exchange Sensitive Index

BSE Limited, also known as the


Bombay Stock Exchange (BSE), is an
Indian stock exchange which is located
on Dalal Street in Mumbai. Established
in 1875 by cotton merchant
Premchand Roychand it is the oldest
stock exchange in Asia,and also the
tenth oldest in the world.The BSE is
one of the world's largest stock
exchanges by market capitalization.
Five stock brokers gathered together
under a Banyan tree in front of
Mumbai Town Hall, where Horniman
Circle is now situated.A decade later,
the brokers moved their location to
under the banyan trees at the junction
of Meadows Street and what was then
called Esplanade Road, now Mahatma
Gandhi Road. With a rapid increase in
the number of brokers, they had to
shift places repeatedly. At last, in
1874, the brokers found a permanent
location, the one that they could call
their own.
Stock Exchange Terminology

Bear market: a general decline in the


stock market over a period of time.

Ask: the lowest price a seller of a stock


is willing to accept for a share of that
given stock.

Bid: the highest price a buyer is willing


to pay for a share.

Bull market: a period where prices rise


in the stock market.

Market trend: the tendency of the


stock market to move in a particular
direction over time.

Portfolio: A collection of investments


/different assets owned by investors.
Share: Unit of ownership in a
particular Company.

Volatility: How fast stock moves up


and Down. Fluctuation of a price in
relation to the market index.

Sectors : Group of companies with


similar Business activities.

Indices : A stock market index is a


statistical source that measures the
performance of a group of stocks.

IPO: Initial Price offering when a


private company becomes a publicly
traded company.

Blue Chip Stocks: Stocks of Large


Industry Leading Companies.

Broker: Person who buys or sells and


investment for us.
Large-cap Stocks: Companies with
market capitalization over Rupees
20000 crore.

Mid-Cap Stocks: Companies with


market capitalization between rupees
5000 crore and 20000 crore.

Small-Cap Stocks: Companies with


market capitalization less that 5000
Crore.
25 Companies Listed on Stock
Exchange

HDFC Bank - 9.19 trillion INR

ICICI Bank - 6.46 trillion INR

Mahindra and Mahindra Ltd - 1.64


trillion INR

Bajaj Auto Ltd - 1.31 trillion INR

Havells India - 805.19 billion INR

Pidilite - 1.35 trillion INR

Asian Paints - 3.16 trillion INR

Bajaj Finance - 4.23 trillion INR


Nestle - 2.17 trillion INR

Hindustan Unilever - 6.21 trillion


INR

Abbot - 481 billion INR

Apollo Hospital - 725.46 billion INR

Infosys - 5.23 trillion INR

Tata Consultancy - 11.78 trillion


INR

Pvr - 135.36 billion INR

Reliance Industries - 17.01 trillion


INR

HCL Technologies - 3.61 trillion INR


Wipro - 2.08 trillion INR

SBI - 4.95 trillion INR

DLF - 1.18 trillion INR

Indusind Bank - 1.02 trillion INR

Godrej - 162.11 billion INR

Adani Enterprises - 2.25 trillion INR

Pfizer - 171 billion INR

Bharat Petroleum Corporation - 777.6


Billion INR
Top 10 Companies based on
Market Capitalization (INR)

1.Reliance Industries - 17.01 trillion


2.Tata Consultancy - 11.78 trillion
3.HDFC Bank - 9.19 trillion
4.ICICI Bank - 6.46 trillion
5.Hindustan Unilever - 6.21 trillion
6.Infosys - 5.23 trillion INR
7.SBI - 4.95 trillion INR
8.Bajaj Finance - 4.23 trillion
9.HCL Technologies - 3.61 trillion
10.Asian Paints - 3.16 trillion
Portfolio
Reliance
ICICI
Nestle
Infosys
Havells India
Factors Influencing Fluctuation
of Prices

1.Change of Seasons
The stock market is subject to a
seasonal effect in that at certain times
of the year, month or even week, share
prices can rise or fall.
This can be because there are fewer
traders active in the market (for
example over summer holidays).

2.Festivals
Festivals can have an impact on share
prices, particularly for companies
operating in industries related to
entertainment, retail, and consumer
goods.
Here are some ways in which festivals
can affect share prices: Festivals often
bring about increased consumer
spending leading to potential growth
in revenues and profitability. This
positive performance can positively
impact their share prices.
3.Spread of Epidemic

The spread of an epidemic can have a


significant impact on share prices.
When an epidemic, such as a viral
outbreak, occurs, it can disrupt various
aspects of the economy and affect
businesses across multiple industries.
The spread of COVID-19 has led to
declines in stock prices and increases
in stock-price volatility.
The stock market initially dropped
when it became clear that COVID-19
would cause a rapid and historic drop
in economic output.

4.Strikes and Accidents


Strikes and accidents can have an
impact on share prices, particularly for
the companies directly affected by
these events.
Here are some ways in which strikes
and accidents can affect share prices:
Strikes can disrupt a company's normal
operations, This can negatively impact
a company's financial performance,
leading to lower revenues and
potentially lower profits. Investors
may react to this disruption by selling
their shares, which can contribute to a
decline in share prices.

5.Natural and Human Disaster


Natural and human disasters can have
a significant impact on share prices,
particularly for companies directly
affected by such events.
Here are some ways in which natural
and human disasters can affect share
prices: Disasters like earthquakes,
hurricanes, fires, or floods can cause
severe damage to a company's
infrastructure, facilities, and supply
chains. These disruptions can lead to
negative impact on a company's
financial performance and can lead to
a decline in share prices.
6.Political Environment

The political environment can have a


significant impact on share prices, as it
introduces a level of uncertainty and
potential changes in policies that can
affect businesses and investor
sentiment.
Political decisions and policy changes
by governments can directly impact
various industries and companies.
For example, changes in tax policies,
operations of companies. Anticipation
of such policy changes or regulatory
actions can influence investor
sentiment and, subsequently, share
prices.

7.International Event

International events such as war and


civil unrest, natural catastrophes,
critical announcements, and terrorism
can affect company stock prices and
the stock market in general.
These directly or indirectly affect the
market and occur in chain reactions.
Bibliography

History Of Indian Stock Market -


InveShares

What is National Stock Exchange of


India(NSE) – Stock Investment Tips
(ismarket.in)

History & Milestones


(nseindia.com)

Bombay Stock Exchange -


Wikipedia

National Stock Exchange of India -


Wikipedia

51 Stock Market Terms Beginners


Must Know | Samco
Infographic: 40 Stock Market Terms
That Every Beginner Should Know
(visualcapitalist.com)

Role And Functions Of Stock


Exchange In India Essay Example -
PHDessay.com

SEBI - Objectives, Functions,


Purpose and Structure (byjus.com)

SEBI - Securities And Exchange


Board Of India - Role, Objectives,
Structure & Functions
(elearnmarkets.com)

Functions of Stock Exchange in


India (commercemates.com)

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