IER Project Work

ON
A STUDY ON RECENT DEVELOPMENT IN
INDIAN STOCK MARKET

Submitted to:
Submitted by:
Prof. Brendra prasad
Rahul Ojha
PGDM-
FS(104)
 ACKNOWLEDGEMENT

I would like express my heartfelt feelings and convey immense thanks to all
those who gave me there moral support and shared their insights with me
while I was preparing this project.

First and foremost, I am highly thankful and indebted to my faculty, Prof.

Brendra Prasad who was always been there to encourage and help me
whenever I needed his help, I owe special thanks to him for providing his
unending support and co-operation.
I would also like to thank my library assistant, who had to sit late many
times, just because I was working on the computer systems for my project
in library.

Last but not least, I will ever remain grateful and indebted to my parents,
my teachers and friends who have always been the source of unending
inspiration, encouragement and guidance in pursuit of excellence and
learning process throughout my life.
 TABLE OF CONTENTS

1. INTRODUCTION TO ISM.

• BSE.

• NSE.
2. BSE INDICES.
3. NSE INDICES.
4. RECENT DEVELOPMENT IN BSE.
5. RECENT DEVELOPMENT IN NSE.
6. SEBI NEW DEVELOPMENT & RULES.
 INTRODUCTION INDIAN STOCK MARKET

Indian stock exchange may refer to:

 Bombay Stock Exchange

 National Stock Exchange of India

• The Bombay Stock Exchange (BSE) :- BSE is a stock

exchange located on Dalal Street, Mumbai and is the oldest
stock exchange in Asia. The equity market capitalization of
the companies listed on the BSE wasUS$1.63 trillion as of
December 2010, making it the 4th largest stock exchange in
Asia and the 8th largest in the world. The BSE has the
largest number of listed companies in the world. It has also
been cited as one of the world's best performing stock
market by Reuters (international news agency).
As of December 2010, there are over 5,034 listed Indian
companies and over 7700 scrips on the stock exchange, the
Bombay Stock Exchange has a significant trading volume.
The BSE SENSEX (Sensitive index), also called the "BSE 30", is
a widely used market index in India and Asia. Though many other
exchanges exist, BSE and the National Stock Exchange of
India account for the majority of the equity trading in India. While
both have similar total market capitalization (about USD 1.6
trillion), share volume in NSE is typically five times that of BSE.
The Bombay Stock Exchange is the oldest exchange in Asia. It
traces its history to the 1850s, when 4 Gujarati and 1 Parsi
stockbroker would gather under banyan trees in front of Mumbai's
Town Hall. The location of these meetings changed many times,
as the number of brokers constantly increased. The group
eventually moved to Dalal Street in 1874 and in 1875 became an
official organization known as 'The Native Share & Stock Brokers
Association'. In 1956, the BSE became the first stock exchange to
be recognized by the Indian Government under the Securities
Contracts Regulation Act. The Bombay Stock Exchange
developed the BSE Sensex in 1986, giving the BSE a means to
measure overall performance of the exchange. In 2000 the BSE
used this index to open its derivatives market, trading Sensex
futures contracts. The development of Sensex options along with
equity derivatives followed in 2001 and 2002, expanding the
BSE's trading platform. Historically an open outcry floor trading
exchange, the Bombay Stock Exchange switched to an electronic
trading system in 1995. It took the exchange only fifty days to
make this transition. This automated, screen-based trading
platform called BSE On-line trading (BOLT) currently has a
capacity of 8 million orders per day. The BSE has also introduced
the world's first centralized exchange-based internet trading
system, BSEWEBx.co.in to enable investors anywhere in the

world to trade on the BSE platform

BSE INDICES:-
The launch of SENSEX in 1986 was later followed up in January
1989 by introduction of BSE National Index (Base: 1983-84 =
100). It comprised 100 stocks listed at five major stock exchanges
in India - Mumbai, Calcutta, Delhi, Ahmedabad and Madras. The
BSE National Index was renamed BSE-100 Index from October
14, 1996 and since then, it is being calculated taking into
consideration only the prices of stocks listed at BSE. BSE
launched the dollar-linked version of BSE-100 index on May 22,
2006. BSE launched two new index series on 27 May 1994: The
'BSE-200' and the 'DOLLEX-200'. BSE-500 Index and 5 sectoral
indices were launched in 1999. In 2001, BSE launched BSE-PSU
Index, DOLLEX-30 and the country's first free-float based index -
the BSE TECk Index. Over the years, BSE shifted all its indices to
the free-float methodology (except BSE-PSU index). BSE
disseminates information on the Price-Earnings Ratio, the Price to
Book Value Ratio and the Dividend Yield Percentage on day-to-
day basis of all its major indices. The values of all BSE indices
are updated on real time basis during market hours and displayed
through the BOLT system, BSE website and news wire agencies.
All BSE Indices are reviewed periodically by the BSE Index
Committee. This Committee which comprises eminent
independent finance professionals frames the broad policy
guidelines for the development and maintenance of all BSE
indices

Index Curr Price % Chg Prev.Close Open High Low

DOL200 843.30 1.12% 833.98 836.49 844.08 836.49
DOL100 2216.52 1.12% 2191.95 2199.48 2218.72 2199.48
SMLCAP 7920.84 0.67% 7868.13 7868.13 7946.55 7868.13
BSE REALTY 2178.70 2.83% 2118.77 2124.83 2181.74 2124.83
BSE Power 2606.38 0.97% 2581.37 2588.19 2609.23 2588.19
OIL &GAS 9852.43 -0.25% 9877.33 9899.61 9932.05 9807.53
MIDCAP 6655.30 0.78% 6603.80 6603.80 6659.52 6603.80
METAL 15716.15 1.03% 15556.50 15646.80 15772.70 15618.50
BSE IPO 1721.86 1.04% 1704.22 1704.22 1723.20 1704.22
DOL30 3368.57 1.18% 3329.38 3344.05 3372.60 3344.05
BANKEX 12583.59 0.97% 12463.20 12498.50 12637.10 12498.50
AUTO 8717.68 1.40% 8597.51 8644.36 8727.61 8639.11
BSE_TECK 3603.39 0.97% 3568.82 3579.15 3607.11 3577.18
SENSEX 18350.74 0.79% 18206.20 18286.40 18374.00 18269.30
BSE_PS 8655.17 0.55% 8607.59 8624.23 8675.84 8624.23
BSE_IT 6099.51 1.07% 6034.69 6054.72 6106.54 6042.33
BSE_H 5942.39 -0.09% 5947.72 5957.93 5990.47 5933.44
BSE_FMCG 3455.44 0.33% 3444.22 3456.39 3470.90 3446.50
BSE_CG 12735.02 1.27% 12575.50 12634.80 12775.50 12634.80
BSE_CD 5881.36 1.25% 5808.85 5808.85 5896.21 5808.85
BSE_500 7095.85 0.74% 7043.64 7062.63 7104.29 7062.63
BSE_200 2265.40 0.73% 2248.89 2255.67 2268.52 2255.67
BSE_100 9582.81 0.74% 9512.60 9545.27 9596.25 9542.60
The National Stock Exchange (NSE):-The National Stock
Exchange (NSE), located in Bombay, is India's first debt market. It
was set up in 1993 to encourage stock exchange reform through
system modernization and competition. It opened for trading in
mid-1994. It was recently accorded recognition as a stock
exchange by the Department of Company Affairs. The
instruments traded are, treasury bills, government security and
bonds issued by public sector companies.
The National Stock Exchange of India Limited has genesis in the
report of the High Powered Study Group on Establishment of New
Stock Exchanges, which recommended promotion of a National
Stock Exchange by financial institutions (FIs) to provide access to
investors from all across the country on an equal footing. Based
on the recommendations, NSE was promoted by leading
Financial Institutions at the behest of the Government of India and
was incorporated in November 1992 as a tax-paying company
unlike other stock exchanges in the country.
NSE is now one of the top-10 stock exchanges in the
world in terms of number of daily transactions or trading
volume, even though the Indian market is only the fifth
largest in Asian in terms of total market capitalization.
Trading volumes have been going up steadily over the
last many years as the Indian stock market has attracted
considerable investment flows from overseas investors.
India has become one of the most widely tracked
emerging market with nearly 1,000 foreign institutional
investors (FII) registered with market regulator SEBI.

NSE Group:-
1. India Index Services & Products Ltd. (IISL)
2. National Securities Clearing Corporation Ltd. (NSCCL)
3. NSE.IT Ltd.
4. National Securities Depository Ltd. (NSDL)
5. DotEx International Limited

NSE Indices:-
Index Current Pts %
Change Change

S&P CNX 5654.25 131.85 2.39 %

NIFTY
CNX NIFTY 10943.10 134.90 1.25 %
JUNIOR
CNX IT 6930.65 270.10 4.06 %
BANK NIFTY 11387.30 316.95 2.86 %
INDIA VIX 20.47 0.63 3.18 %
CNX 100 5536.80 119.80 2.21 %
S&P CNX 4385.10 106.70 2.49 %
DEFTY
S&P CNX 4493.35 86.70 1.97 %
500
CNX 7824.15 76.95 0.99 %
MIDCAP
NIFTY 2443.60 30.35 1.26 %
MIDCAP 50
CNX INFRA 2987.90 65.45 2.24 %
CNX 298.95 8.15 2.80 %
REALTY
How is Bombay Stock Exchange recent
development as the oldest Stock Exchange in
Asia?

1. Deutsche Boerse, Europe's top stock exchange and

transaction service provider has signed an agreement to
buy 5 percent equity in the Bombay Stock Exchange
(BSE) for $43 million. BSE is the oldest bourse in Asia.
The deal values the exchange at $910 million on an
expanded equity base.

2. Singapore Stock Exchange (SGX) says its short listed

for BSE stake. It claimed that it has been short listed to
buy a 5 percent stake in the bourse. BSE is understood to
have finalized its plans to have SGX as its second foreign
partner.

3. NASDAQ Stock Market Inc., London Stock Exchange

Group PLC and NYSE Group Inc. have also been touted
as bidders for a stake in BSE.

4. The BSE is said to be looking for foreign investors. It

plans to offload the stake held by some of the brokers to
strategic investors (26%) and to the public (23%)
through an IPO.

Recent development in National Stock

Exchange :-
1. US major, NYSE, bought 5 per cent in the
National Stock Exchange for $115 million. This
values NSE at $2.3 billion.

2. Few weeks back Goldman Sachs acquired five

per cent in the National Stock Exchange.

3. Nine exchanges have come together and

signed a memorandum of understanding
(MoU) with the National Stock Exchange
seeking to extend its trading platform onto
the regional stock exchanges. The nine
exchanges include, Interconnected Stock
Exchange of India , Ahmedabad Stock
Exchange, Ludhiana Stock Exchange, Madras
Stock Exchange, Cochin Stock Exchange,
Bangalore Stock Exchange and Calcutta Stock
Exchange. The proposal is awaiting approval
from SEBI. The RSEs are, however, pushing
for access to both BSE and NSE's trading
platform.

4. A major shareholder of National Stock Exchange of

India Ltd. (NSE) intends to divest up to 5% stake.
The 5% stake in NSE is valued about INR 10 billion.
IDBI Capital Market Services Ltd. will be handling the
sale process over the next one week. IDBI Capital
said that it is seeking bids for "sale of equity shares
not exceeding 5% of the total equity share capital of
the National Stock Exchange of India Ltd." Bids are
 to be submitted by March 11. NSE itself is not a party
to the proposed transaction and would have a right to
approve or reject any transfer of shares. IDBI Capital
said that the buyer could be a foreign institutional
investor (FII), a resident Indian individual investor or
any other domestic entity.

BSE NSE
Claim to fame: Oldest stock exchange in Largest stock exchange in
Asia. India in terms of daily
turnover and number of
 BSE NSE
trades.

Established in: 1875 1992

Name: Bombay Stock Exchange National Stock Exchange

Market
capitalization of Rs. 4,670,227 crore Rs. 3,367,350 crore.
listed companies:

Number of
951 (Oct 2007) 1,009 as on March 2007
members:

Number of listed
companies (June 6000+ 1,810
2010):

Geographical
Presence in 417 cities Presence in 1,486 cities
spread:

Website: www.bseindia.com www.nseindia.com

Index value (June

17,757 5,322
2010):

Main Index: BSE Sensex S & P CNX Nifty

Bombay Stock Exchange National Stock Exchange

Full Name:
Limited of IndiaLimited

Mr. Madhu Kannan (MD & Mr. Ravi Narain (Managing

Key Person:
CEO) Director)

Number of trader
15,547 (May 2010)
workstations:

Top trading Reliance Industries

companies in Limited, Infosys
volumes in main Technologies Limited,
index (Till March Satyam Computer
2007): Services.

Top companies in
Reliance Industries
terms of market
Limited, Oil and Natural
capitalization in
Gas Corporation, Bharti
each index (Till
Airtel Limited
March 2007)
SEBI new developments in Indian Stock
Market

1. Prospects to have more clarity on directors’

details

The SEBI Board directed companies raising capital to

make certain disclosures regarding their board of
directors. The offer document of companies raising capital
should contain disclosures from their directors on whether
they were directors of any company whose shares were
suspended from trading for more than three months
during the last five years, SEBI said in a release issued
after the board meeting. It is learnt that the market
regulator is coming out with detailed amendments to its
issue of capital and disclosure requirements prescribing
the enclosures for such disclosures in the offer document.

2. SEBI eases listing rules for SMEs

The Securities and Exchange Board of India (SEBI) has

relaxed share-listing norms for small and medium
enterprises (SMEs) by allowing them to disclose their
financial results every six months instead of three months,
as is the norm for bigger companies. Companies listed on
the SME exchange will not be required to send a full
annual report to their shareholders and also need not
publish their financial results as required in the main stock
exchange. “Companies listed on the SME exchange may
send to their shareholders a statement containing the
salient features of all the documents,” the regualtor said in
 its circular. But these companies will have to maintain a
public shareholding of at least 25% of the total number of
issued shares at all times. A company listed on the SME
exchange, having post-issue capital between Rs 10 crore
and Rs 25 crore can migrate to the main exchange
provided it meets the listing requirements of the stock
exchange. For this purpose, the company must first make
a proposal to list the specified securities and obtain the
prior approval of its shareholders.

3. SEBI asks brokers to submit report on rollout

of new norms
Market regulator SEBI has asked stock brokers to provide
the exchanges with a status report on the implementation
of new client-broker agreement, which will become
effective from June 30. The deadline has been extended a
couple of times, as brokers sought time to prepare for the
proposed changes, and also due to ambiguity over some
of the rules. SEBI had announced the guidelines in
December last year. The new rules require brokers to
keep records of the people introducing new clients, and
regulatory actions against them (clients), detail the
systems for settling client funds and securities once a
calendar quarter/month, among other things. For existing
clients, the broker has to inform the exchanges if he has
obtained a signed confirmation letter for the e-mail id to
which transactions details will be sent, and the necessary
consents for running accounts, annual renewal, among
other things.

4.SEBI proposes stronger disclosure norms for

rating agencies
Concerned over the practice of certain companies
influencing rating actions, market regulator SEBI
proposed a stronger disclosure norms for credit
rating agencies (CRA). “It is recommended that all
registered agencies be required to disclose publicly
on their websites their shareholding pattern and the
names of the owners,” said a SEBI sub-group in its
recommendation on which the regulator has invited
comments from public. Rating agencies, the report
added, “have to manage this conflict and prevent it
from influencing rating decisions. Both regulations
and internal procedures have to be designed towards
this end.” On disclosure of rating performance, the
sub group recommended that every CRA be required
to publish, every six months, a list of its publicly
outstanding ratings that have moved by more than
one notch over the preceding six months.