BUSINESS STUDIES

HOLIDAY HOMEWORK
ART INTEGRATION PROJECT

PROJECT THREE:STOCK EXCHANGE

By Sanchit Dhaulta
12-D
 INDEX

1.HISTORY OF STOCK EXCHANGE IN INDIA

2.25 COMPANIES IN STOCK EXCHANGE
3.PORTFOLIO TOTALLING THE SUM OF 50,000 IN 5 COMPANIES
4.NEGOTIABLE INSTRUMENTS ACT
5.CLOSING PRICES AND OPENING PRICES
6.CAUSES OF FLUCTUATION OF PRICES
7.GRAPHICAL PRESENTATION OF DIFFERENT COMPANIES ON DIFFERENT DATES
8.CHANGE IN MARKET VALUE OF SHARES DUE TO FESTIVALS AND SEASONS
9.CHANGE IN MARKET VALUE DUE TO CHANGE IN POLITICAL ENVIRONMENT
10.TOP 10 COMPANIES OUT OF 25 ON THE BASIS OF THEIR MARKET SHARE
 HISTORY OF STOCK EXCHANGE IN INDIA

The first organised stock exchange in India was started in 1875 at Bombay and it is stated to be the
oldest in Asia. In 1894 the Ahmedabad Stock Exchange was started to facilitate dealings in the shares
of textile mills there. The Calcutta stock exchange was started in 1908 to provide a market for shares of
plantations and jute mills.

Then the madras stock exchange was started in 1920. At present there are 24 stock exchanges in the
country, 21 of them being regional ones with allotted areas. Two others set up in the reform era, viz.,
the National Stock Exchange (NSE) and Over the Counter Exchange of India (OICEI), have mandate to
have nation-wise trading.

They are located at Ahmedabad, Vadodara, Bangalore, Bhubaneswar, Mumbai, Kolkata, Kochi,
Coimbatore, Delhi, Guwahati, Hyderabad, Indore, Jaipur’ Kanpur, Ludhiana, Chennai Mangalore,
Meerut, Patna, Pune, Rajkot.

The Stock Exchanges are being administered by their governing boards and executive chiefs. Policies
relating to their regulation and control are laid down by the Ministry of Finance. Government also
Constituted Securities and Exchange Board of India (SEBI) in April 1988 for orderly development and
regulation of securities industry and stock exchanges.
 25 COMPANIES IN STOCK EXCHANGE

1.Reliance 14.HCL Tech

2.TCS 15.ITC
3.HDFC BANK 16.Axis Bank
4.Infosys 17.Maruti Suzuki
5.HUL 18.Avenue Supermar
6.HDFC 19.Larsen
7.ICICI Bank 20.Ultra Tech Cement
8.SBI 21.Bajaj Finserv
9.Bajaj Finance 22.Adani Green Ene
10.Kotak Mahindra 23.Nestle
11.Wipro 24.Adani Enterprise
12.Bharti Airtel 25.JSW Steel
13.Asian Paints
PORTFOLIO TOTALLING THE SUM OF 50,000 EQUALLY IN 5 COMPANIES

Overall Portfolio means where a common person invest his or her money to protect & invest to grow in
multiple fold according to his or her risk appetite .
like options are Gold , Property , Bank FDs ,Saving Accounts, Company FDs , Mutual Funds & equity market
.

Further in equity market portfolio is that where & what kind of sectors & companies you like to
invest your money . As equity market is high risk - high rewards segment of investment so we should
always careful before we invest . we should invest in different sector & companies to minimize risk &
maximize our profits .
here is probable answer of question sector (you can any blue-chip stock from these sector)wise as total
amount is 50 K to invest according to current market & economical conditions of nation.
1. Bank : 20K
2. Cement :10 K
3 Pharma : 5 K
4. FMCG : 10 K
5: Infra : 5K
 NEGOTIABLE INSTRUMENTS ACT

Negotiable Instruments Act 1881 regulates the different types of negotiable instruments like
Promissory notes, Bills of Exchange and Cheques. According to Sec. 13 of the Act, negotiable
instrument means ‘a Promissory Note, Bills of Exchange or Cheque payable either to order or to
bearer’. Thus, Negotiable Instrument in simple terms means any written document which is
transferable on delivery.
Section 138 of the act talks about punishment for dishonoring of cheques. Section 138 was
introduced as a criminal offence in 1989 by way of an amendment to the Negotiable Instruments
Act, 1881.The main objective of introduction of this section was to encourage the use of cheques
and increasing the credibility of transactions through cheques by making the dishonoring of the
cheques as an offence.
Section 138 provides that when the cheque is dishonored for insufficiency of funds or for any of
the prescribed reasons, the one who is at defaulter can be punished with imprisonment for a term
which may extend to two years, or with fine which may extend to twice the amount of the cheque,
or both. This is also a non-cognizable offence.
 CLOSING PRICES AND OPENING PRICES

In the stock exchanges, the prices of stocks are fluid and constantly changing. The price quoted for a stock at any point
throughout the day is simply the price that paid the last time that stock was traded. Stock exchanges match buyers and
sellers, but the forces of supply and demand determine the prices at which stocks are bought and sold.

According to the forces of supply and demand, no trade can occur until one participant is willing to sell the stock at a
price (the ask price) at which another is willing to buy it (the bid price). This point, where a buyer and seller agree on a
price, is called an equilibrium. If there are more people who want to buy a stock than people who are willing to sell the
stock–there are more buyers than sellers–the stock's price will rise due to increased demand. On the other hand, if more
people are selling a given stock than are buying it, its price will decrease.

The listed closing price is the last price anyone paid for a share of that stock during the business hours of the exchange
where the stock trades. The opening price is the price from the first transaction of a business day. Sometimes these prices
are different. During a regular trading day, the balance between supply and demand fluctuates as the attractiveness of
the stock's price increases and decreases. These fluctuations are why closing and opening prices are not always identical.
In the hours between the closing bell and the following trading day's opening bell, a number of factors can affect the
attractiveness of a particular stock.
 CAUSES OF FLUCTUATION OF PRICES

Causes of Price Fluctuation in Stock Exchange

Share business is often called gambling. Actually, it is not true but the price of share often fluctuating. The price of share
always fluctuates with and without arguments. Its price of the share is on the basis of demand and supply of the shares. But
the rate of change price level of shares is much faster than that of products in the market. There are many causes of
fluctuating share price except demand and supply. The possible causes of price fluctuation of shares are discussed below:

Demand and Supply: The update on demand and supply is the main reason for price fluctuation. If the supply of share is
lower than the market demand, the price of such shares goes high. On the other hand, if the supply exceeds the market
demand, the price falls. So, price mechanism works here as like product market.

Financial Condition of the firm: Financial condition of a company affects massively the price of that in the market. If the
condition is better more and more investors are willing to invest in that company and thus the price of the shares of that
company goes high. On the other hand, if the condition is not good, the investors switch the company, and they leave the
share in the market. So, the price of the share of that company goes down.

AND THERE ARE MANY MORE

GRAPHICAL PRESENTATION OF DIFFERENT COMPANIES ON DIFFERENT DATES
CHANGE IN MARKET VALUE OF SHARES DUE TO SEASONS OR FESTIVALS

As an investor the question often comes in mind whether festivals

have an impact on the Indian Stock Market. As the second half of
the Indian calendar year arrives, the list of festivals keep growing
and one tend to think if more money should be invested to reap
more profits. Let’s pick the S&P CNX NIFTY as a test criterion, as it
has the most number of liquid scrip in the portfolio.

The results infer that the daily average return for both NIFTY and
SENSEX are near about 0.07% for the 10 years of data between
2003 and 2013. On the other hand, the standard deviation for
both the index is around 1.65%, which mirrors the variability of
the mean observation. Hence, over the period of ten years, the
return fluctuates about 2% on a daily basis. But, the maximum
return and minimum return for daily return is 12% and 16%
respectively.
 CHANGE IN MARKET VALUE OF SHARES DUE TO CHANGE INPOLITICAL ENVIRONMENT

Politicians are responsible for policy decision and forming regulations governing the nation which directly and indirectly
affect the company, local market, import or exports, purchasing power and economy as a whole.
For example,
1) Unstable or coalition government is considered to be bad by stock market and major decisions and reforms are generally
difficult without majority.
2) Communist government in capitalist economies is considered will affect the companies stock prices negatively.
3) Import export ban can affect operations of company. So can deals from governments and government projects.
4) Currency valuation compared to other currencies is impacted not just by reserve bank but by politics as well. Same for
bank repo reverse repo rate and CRR.
5) Subsidy can incentivize one product over another and selective taxation and duites can deincentivize one product and
hence affect the stock price.
6)Corruption in politics can also have negative impact on doing business.
7) Some political decision, for example, populist decisions or those in manifesto of political party with majority can harm or
promote the economy. Too much spending, increase in fiscal deficit,inflationary policies, taxation affect the economy. Direct
and indirect tax in budget affect the purchasing power and hence can demotivate the stock price.
8)Decision of war may have direct impact on stock price.
9) Government control spending on different projects. A change in policy will selectively affect sectors of stock market.
Sometimes it can trickle to other countries economy as well in this era of globalization and connected economies.
 TOP 10 COMPANIES OUT OF 25 ON THE BASIS OF THEIR MARKET VAKUE OF SHARES
1. Reliance Industries
With a market cap of ₹1,350,183.97, Reliance Industries leads the Indian Industries with the highest market cap. The
multinational conglomerate company is headquartered in Mumbai and engages in a range of businesses in the
textiles, telecommunications, retail, natural resources, and petrochemical sectors.
2. 2. TATA Consultancy Services
With a market cap of ₹1,163,018.74 crores, Tata Consultancy Services (TCS) is in the second position in the Indian
industries list. TCS is an IT services, business solutions, and consulting firm headquartered in Mumbai. TCS ranks
among the global leaders in the IT services segment.

3. HDFC Bank
In the third position with a market cap of ₹828,341.24 crores, HDFC Bank is among the leaders in the Indian financial and
banking services firms. Incorporated in 1994, HDFC Bank was the first bank in India approved by the RBI to offer financial
services in the private sector.

4. Infosys
At present, Infosys is valued at ₹598,604.10 crores in terms of the market value of the company, placing it in the sixth
position among the top 10 Indian firms. Founded in 1981, Infosys is a global leader in the IT services segment.

5. Hindustan Unilever
Hindustan Unilever has a market cap of ₹545,762.50 crores and is ranked the fourth among the top 10 Indian
companies in terms of market capitalization. A leader in India’s fast-moving consumer goods firm, the company has a rich
history of over 80 years. The company website says on any given day, nine out of ten Indian houses use the company’s
products.
6. HDFC
The market cap of HDFC is ₹458,768.37 crores, and hence the entity is ranked in the fifth position among the top 10 Indian
companies. Expanded as Housing Development Finance Corporation Limited, the Indian financial services company is
Mumbai-based, with a presence in banking, general insurance, asset management, realty, education, deposits, venture
capital, and others.
7. ICICI
ICICI bank’s market cap is ₹445,206.50 crores, and hence the firm is ranked in the ninth position among the largest Indian
firms. ICICI bank provides a wide range of banking products and financial services to retail and corporate customers through
its group customers and a variety of channels.

8. SBI
SBI on eighth position has a market of ₹376,663.23 crores. It is an Indian multinational, public sector banking and financial
services statutory body with headquarters in Mumbai, Maharashtra.
9. Kotak Mahindra Bank
Kotak Mahindra Bank has a market cap of ₹356,849.67 crores at present, making it the eighth largest company in India. One
of the leading financial institutions in the country, Kotak Mahindra Bank, has a strong presence in India and offerings a wide
portfolio of banking and financial services.

10. Bajaj Finance

The Indian financial services company has a market cap of ₹338,589.27 crores at present and is ranked in the tenth position
in the list. Bajaj Finance with its headquarters in Pune, Maharashtra, is focused on lending, asset management, wealth
management and insurance.