Report on

INDIAN STOCK MARKETS

Submitted to: -

Amity University, Jharkhand

In partial fulfillment of the requirements for the award of the degree of

BACHELORS OF BUSINESS ADMINISTRATION

By
ANKUR TULSYAN
Enrollment No.: - A36106418150
Under the guidance of:
MR.SIDDHARTH HALDAR SIR
AMITY BUSINESS SCHOOL

AMITY UNIVERSITY JHARKHAND RANCHI

SEPTEMBER 2021
 DECLARATION
I, ANKUR TULSYAN, student of Bachelors of Business Administration hereby declare that the
Project titled “Report on INDIAN STOCK MARKETS” which is submitted by me to
Department of Management, Amity Business School, Amity University Jharkhand, in partial
fulfillment of requirement for the award of degree of Bachelors of Business Administration, has
not been previously formed the basis for the award of any degree, diploma or other similar title
or recognition. I further declare that report is written by me and no part of report is copied from
source without being duly acknowledged. If it is found to be plagiarized beyond acceptable limit,
I owe the responsibility and action can be taken against me as per university Rules and
Regulations.

Amity University Jharkhand, Ranchi

Date:

Sign of the Student

ANKUR TULSYAN

Enrollment Number: A36106418150

CERTIFICATE

On the basis of Project Report submitted by ANKUR TULSYAN, student of Bachelors of

Business Administration, I hereby certify that the Project Report INDIAN STOCK MARKETS”
which is submitted to Department of Management, Amity Business School, Amity University
Jharkhand in partial fulfillment of requirement for the award of the degree of Bachelors of
Business Administration is an original contribution with existing knowledge and faithful record
of work carried out by him/her under my guidance and supervision.

To the best of my knowledge this work has not been submitted in part or full for any Degree or
Diploma to this University or elsewhere.

Amity University, Ranchi

1
Date:

Signature of Guide (Internal)

Name of the Faculty: - MR.SIDDHARTH HALDAR SIR

Assistant Professor

Amity Business School Ranchi

Amity University Jharkhand, Ranchi

INDEX

1 Abstract 4

2 Acknowledgment 5
3 Objective 6
4 Research Methodology 7
5 Introduction 8-9
6 Stock exchanges in 10
India

2
 7 Sector Indicators 11
8 Reasons to trade in 12
stock markets
9 Important jargons 13 - 14
10 Differnce between the 15
cap sizes of the
companies
11 Relation between 16
domestic and
international indices
12 Conclusion 17
13 References and 18
bibliography

ABSTRACT

The 2008 crash was the greatest jolt to the global financial system in almost a
century – it pushed the world’s banking system towards the edge of collapse.
Within a few weeks in September 2008, Lehman Brothers, one of the world’s
biggest financial institutions, went bankrupt; £90bn was wiped off the value of
Britain’s biggest companies in a single day; and there was even talk of cash
machines running empty. The 2008 financial crash had long roots but it wasn’t
until September 2008 that its effects became apparent to the world. The immediate

3
trigger was a combination of speculative activity in the financial markets, focusing
particularly on property transactions – especially“There was borrowing on a huge
scale to finance what appeared to be a one-way bet on rising property prices. But
the boom was ultimately unsustainable because, from around 2005, the gap
between incomes and debt began to widen. This was caused by rising energy prices
on global markets, leading to an increase in the rate of global inflation. Its after
affects were seen in india when all the institutional investors pulled their money
out of indian stock market and made the indian stock market also crash This
research evaluates the fundamental causes of the current financial crisis. Close
financial analysis indicates that theoretical modeling based on unrealistic
assumptions led to serious problems in mispricing in the massive unregulated
market for credit default swaps that exploded upon catalytic rises in residential
mortgage defaults. Recent academic research implies solutions to the crisis that are
appraised to be far less costly than a bailout of investors who made poor financial
decisions with respect to credit analysis.

ACKNOWLEDGMENT

As a part of our course curriculum, I had to make a project report on“INDIAN

STOCK MARKETS” I extend my heartiest thank to everybody who help me through

the successful completion of my project, which has been great source of learning
and experience for me.

, my guide MR.SIDDHARTH HALDAR SIR . valuable support guidance in

carrying out this study.

Student’s Signature- ANKUR TULSYAN

4
Name- ANKUR TULSYAN

OBJECTIVE

· To know how the terms used in stock markets

· what preparations needs be done before trading or investing

· encourage more people to invest in stock markets & to understand how stock
markets benefit us all

5
RESEARCH METHODOLOGY

Research methodology provides a systematic, planned approach to the research

project and ensures that all aspects of the research project are consistent with each
other. It is especially important that the research design and implementation be
consistent with the research purpose and objectives.

The research methodology chapter introduces overall research design of the study
which includes the methodology adopted for carrying out the research study and
various phases of this research

Source of Data:

6
Secondary Data – The secondary data for the base of the project is collected from
internet, journals, magazines, reports and newspapers. Research Method:
Descriptive Research

INTRODUCTION

Beginning in the mid-2007’s the US financial market started to slide into the
“worst financial crisis since the Great Depression of the early 1930’s”1 (Thakor,
2015: p.156). The domino effect of several events and occasions was leading first
to a countrywide recession in the USA then later spreading globally. In the
following, this term paper will deal with the main causes and effects of the 2008
financial crisis. Unlike other topics in literature, there is no consensus about the
question of guilt in this sense. Among economists, there are different approaches to
explain the main causes of the financial crisis. Therefore, the central ideas behind
this paper are first to clarify different trigger points and secondly to answer
critically the question of who is to blame for it. Another part will then deal with the
resulting effects for all involved parties and will show the consequences for the US
and global economy. The last part will refer back to the questions posed,
summarizes the main parts of this paper, and will take a look at the future of the
financial sector. the first stage occurred when the US fall into the housing bubble,
which was bloated by significant mortgage lending. The second stage identified
other types of assets that were covered by this crisis. This stage not only impacted

7
mortgage companies but also investment banks together with other banks
worldwide. The third stage represented a colossal addendum of the liabilities from
exposed banks which prompted the international liquidity crisis. This triggered
anxiety about possible credit contagion as of the same risk on the universal scale.
The fourth stage was the disintegrating of investment product structures which
eliminates the comprehensive liquidity provisions into an article of trade, causing
the bubble effect in this area. Lastly, a zenith was reached in September 2008 with
massive shifting of funds into risk-free securities, as Lehman Brothers filed for
bankruptcy protection and US investment banking system faced its ultimate demise

ved parties and will show the consequences for the US and global economy. The
last part will refer back to the questions posed, summarizes the main parts of this
paper, and will take a look at the future of the financial sector. the first stage
occurred when the US fall into the housing bubble, which was bloated by
significant mortgage lending. The second stage identified other types of assets that
were covered by this crisis. This stage not only impacted mortgage companies but
also investment banks together with other banks worldwide. The third stage
represented a colossal addendum of the liabilities from exposed banks which
prompted the international liquidity crisis. This triggered anxiety about possible
credit contagion as of the same risk on the universal scale. The fourth stage was the
disintegrating of investment product structure

8
STOCK EXCHANGES IN INDIA

Stock Exchange (also known as stock market or share market) is one of the main
integral part of capital market in India. It in growing industries and commerce of a
country which eventually affect the economy. It is well organizedof corporate and
other securities which facilitates companies to raise capital by pooling funds from
different investors as well as act as an investment intermediary for investors.
Moreover, it ensures that securities should be traded according to some pre defined
rules and regulations. London Stock Exchange is the oldest stock exchange in the
world whereas e oldest one in India. In India, there are 7 Stock Exchanges out of
which NSE and BSE are the two main indices. Most of the trading in Indian Stock
Market takes place on these two stock exchanges. Both the exchanges follow the
same trading hours, trading mechanism, settlement process etc. At the last count,
BSE comprises of 5800 listed firms whereas on the other hand its rival NSE
consists of 1659 listed firms. Interestingly, out of all the firms listed on BSE, only
around 500 firms constitutes more than 90 % of its market capitalization. Bombay
Stock Exc is the leading and fastest stock exchange in India as well as in South
Asia established in 1875. Bombay stock exchange is the world's 11th largest stock
market by market capitalization at $1.7 trillion as of 31 January 2015 (Monthly
Reports, World Federation of Exchanges). More than 5,000 companies are listed

9
on BSE. The main index of Bombay stock exchange is Sensex which comprises of
30 stocks. National Stock Exchange was incorporated in 1992 as a tax paying
company and was recognized as a stock exchange in 1993 under the Securities
Contracts (Regulation) Act 1956. NSE is the 12th largest stock exchange in the
world with a market capitalization of more than US$ 1.65 trillion as on 31 January
2015 (Monthly Reports, World Federation of Exchanges). Moreover, it was the
first exchange to provide fully automated screen based electronic trading system.
Nifty is the indices to measure overall performance of the National Stock
Exchange which comprises of 50 stock index.

SECTOR INDICATORS

There are number of sectors or industries which are listed on National Stock
Exchange and Bombay Stock Exchange. In addition to this, an individual sector
comprises of number of companies. There are around 73 sectors listed on NSE and
BSE seperately. Some of the important sectors present on both the exchanges are
as follows:-

BANKING SECTOR

AUTOMOBILE SECTOR

INFORMATION TECHNOLOGY SECTOR

METAL SECTOR

REAL ESTATE SECTOR

FMCG SECTOR

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MEDIA & ENTERTAINMENT SECTOR

PHARMACEUTICALS SECTOR

POWER SECTOR

PSU BANK SECTOR

REASONS TO TRADE IN STOCK MARKETS

1. You do not need a lot of money to start making money, unlike buying property
and paying a monthly mortgage.

• 2. very less time required and comfortable

• 3. you can liquid your stocks fast and anytime you want

• 4. Iit is very easy to learn and lots of curses and available on the internet to learn
from and apply and to start to trade and invest in the stock markets. no great i
frastructire or staffs and employees are needed, you just can start with a aco
computer and skills with any amount of capital and frow if you play your cards
right

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IMPORTANT JARGONS

BSE Sensitive Index or SENSEX

o Bull Market

o Bear Market

o Delivery

o Intraday

o Dematerialization

o Long Buy

o Short Selling

o Stop Loss

o Portfolio

o Tick Size

o Averaging

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o Booking Profit or Loss

o Crash - Curciuts

o Right Issue

o Stock bonus

o Stock Split

SNP

CNX NIFTY 50

Nifty CNX 100

Nifty Junior

Future Index

Future Contract

Margin Premium

Discount

Market lot

Roll over

Options

Call

Put

Long

Positions

Short

positions

Expiry

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DIFFERNCE BETWEEN THE CAP SIZES OF THE COMPANIES
The difference between large cap, mid cap and small cap firms is in terms of
market
capitalization. The market capitalization of a share is defined by the total paid up
shares of a
company multiplied by the current price. As prices keep changing, market
capitalization keeps
changing. Large-cap companies tend to be large in terms of their operations
and some
examples will be ABB Limited, ICICI Bank Ltd., and Maruti Suzuki Ltd.
Examples of mid-cap
companies would include MRF, Havells India, Berger Paints and Castrol. Some
names of
small-cap companies are Graphite India, KEC International, La Opala and Century
Plyboard.
The Sensex is a 30 company index of market capitalization; turnover etc. and these
are 30 large

14
companies which are traded on the Bombay Stock Exchange (BSE). Along with
NIFTY, the
index of the National Stock Exchange (NSE), the Sensex is an index of stock
market sentiment.
There are also various indices available like the Mid Cap Index, FMCG index etc.
Figure 3 gives the movement of the three indices over time. The Sensex, which
consists of 30
large companies, is shown in blue, the BSE Mid Cap index is shown in pink, and
the BSE
Small Cap Index is shown in red. In common parlance, some large companies are
termed as
blue-chip companies. Small-cap companies tend to be speculative stocks. The
figure shows that
there have been periods when the indices have converged, which is something
investors need to be wary of
RELATION BETWEEN DOMESTIC AND INTERNATIONAL INDICES
One of the effects of globalization has been the financial integration of economies
around the
world. With advances in computing and communication technology, billions of
dollars move
across the globe at lightning speed every day. Besides direct investment, funds
move into stock
and debt markets, whenever there is an opportunity for gain. Portfolio formation
has moved
beyond financial assets, but into countries. Large fund houses diversify across
countries, and
then across financial assets. Thus, holding China or India in the portfolio is equally
talked
about, as having TCS and Hero Motoco shares in the portfolio. Fund houses not
only look at
company or asset class exposure, but also at country exposure. This has led to
financial co-

15
integration of stock markets and also led to volatility transmission. Figure 3
gives the
movement of various stock market indices across the world, along with India.
Observe that prior to the 2008 sub-prime crisis, all the indices worldwide
converged. After the
crisis, all the indices fell simultaneously indicating the integration and spillovers.
Lately, there
has also been some convergence, with the exception of Shanghai Composite
(green). Note the
fast convergence of Borsa Istanbul (brown) with the rest. Indian Sensex (blue) has
been up
there together with the rest. These co-movements also provide some insight into
the perception
of fund houses of these economies and the expected returns and risk
CONCLUSION

India is growing economy and investing in india can be beneficial, as more and
more population of india learns and becomes comfortable with the stock market,
more money will start to flow in and stock swill start to rise, a very promising and
certain future in the financial markets of inia is on its way, every person must start
to learn financial things that will help them eventually in life, stock markets are not
a thing to run from n=but to learn and apply and take benefit from.

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REFERENCES AND BIBLIOGRAPHY

1. Online Articles, reports, and Direct comments from the employees of google
2. Documentaries related to google
3. US Govt websites
4. Youtube videos
5. LinkedIn persons

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