Share Market Before and After Covid

MINI PROJECT ON
SHARE MARKET BEFORE COVID

SHARE MARKET AFTER COVID
SUBMITTED IN THE PARTIAL FULFILMENT FOR THE REQUIREMENT OF THE AWARD OF DEGREE OF
MASTER OF BUSINESS ADMINISTRATION (MBA)

(2020-2021)
SUBMITTED TO: SUBMITTED BY:

Mr. Anuj Khanna Sir Vineet Tiwari
(H.O.D.) MBA 2nd year
Roll No. 2003510700024
1
ACKNOWLEDGEMENT
When I embarked this project, it appeared to me as onerous task. Slowly as I progressed I

did realized that I was not alone after all.
I wish to express my gratitude to Director, Dr. Rashmi Dewedi and H.O.D.

Mr. Anuj Khanna, who have extended their kind help, guidance and suggestion without
which it could not have been possible for me to complete this mini project report.
I am thankful to my classmates, well-wishers who with their magnanimous and generous

help and support made it a relative easier affair.
My heart goes out to my parents who bear with me all the trouble I caused then with smile
during the entire study period and beyond.
Vineet Tiwari
MBA 2nd year
Roll No. 2003510700024
2
STUDENT DECLARATION
I, Vineet Tiwari student of M.B.A at Krishna Institute of Technology Kanpur of

hereby declare that the Mini Project work entitled “share market before covid
share market after covid” is compiled and submitted under the guidance of Miss.
Arpita Shukla faculty of MBA Department. This is my original work.
Whatever information furnished in this project report is true to the best of my

knowledge.
Vineet Tiwari
MBA 2nd year
Roll No. 2003510700024
3
TABLE OF CONTENTS
CONTENT Page No.
EXECUTIVE SUMMARY 01-02
CHAPTER-I 03-46
 Objective of the study
 Introduction of the bank
 Introduction of ICICI
 History of ICICI
 Industry Growth
 Background
 Management
CHAPTER-II 47-62
 Introduction of the Topic (Training and placement
Process in Banking Sector)
 Meaning of Training
 Importance of training
 Types of training
 Methods of training
 Training objectives
 Role of Ministries / Departments
 Meaning of Placement
 Importance of Placement
 Problems faced by Manager in Placement
CHAPTER-III 63-66
 Research Methodology
 Research Problem
 Research Objective
 Research Design
 Research Process
 Sampling Design
 Methods of Data Collection
CHAPTER-IV 67-77
 Data Analysis & Interpretation
CHAPTER-V 78-81
 Recommendation
 Conclusion
 Bibliography
4
Chapter 1
Introduction of
Share Market
5
Objective of the study
 To study the primary function of a stock exchange is to help companies raise money
 The objective is to study the investors awareness in the Stock Markets.
 To study the influence of stock and investment strategies.
 To study the influence of demographic profile on investors awareness in stock markets.
6
Introduction of share market
Stock market is a place where people buy/sell shares of publicly listed companies. It
offers a platform to facilitate seamless exchange of shares. In simple terms, if A
wants to sell shares of Reliance Industries, the stock market will help him to meet the
seller who is willing to buy Reliance Industries. However, it is important to note that
a person can trade in the stock market only through a registered intermediary known
as a stock broker. The buying and selling of shares take place through electronic
medium. We will discuss more about the stock brokers at a later point.
The share market is a platform where buyers and sellers come together to trade on
publicly listed shares during specific hours of the day. People often use the terms
‘share market’ and ‘stock market’ interchangeably. However, the key difference
between the two lies in the fact that while the former is used to trade only shares, the
latter allows you to trade various financial securities such as bonds, derivatives, forex
etc.
The principal stock exchanges in India are the National Stock Exchange (NSE) and
the Bombay Stock Exchange (BSE).
7
Major Stock Exchanges in India
There are two main stock exchanges in India where majority of the trades take place -
Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Apart from
these two exchanges, there are some other regional stock exchanges like Bangalore
Stock Exchange, Madras Stock Exchange etc but these exchanges do not play a
meaningful role anymore.
National Stock Exchange (NSE)
NSE is the leading stock exchange in India where one can buy/sell shares of publicly
listed companies. It was established in the year 1992 and is located in Mumbai. NSE
has a flagship index named as NIFTY50. The index comprises of the top 50
companies based on its trading volume and market capitalisation. This index is
widely used by investors in India as well as globally as the barometer of the Indian
capital markets.
The National Stock Exchange (NSE) is the leading stock exchange in India and the fourth largest in
the world by equity trading volume in 2015, according to World Federation of Exchanges (WFE).
NSE was the first exchange in India to implement electronic or screen-based trading. It began
operations in 1994 and is ranked as the largest stock exchange in India in terms of total and average
daily turnover for equity shares every year since 1995, [based on SEBI data].
NSE has a fully-integrated business model comprising our exchange listings, trading services,
clearing and settlement services, indices, market data feeds, technology solutions and financial
education offerings. NSE also oversees compliance by trading and clearing members with the rules.
NSE is a pioneer in technology and ensures the reliability and performance of its systems through a
culture of innovation and investment in technology. NSE believes that the scale and breadth of its
products and services, sustained leadership positions across multiple asset classes in India and
globally enable it to be highly reactive to market demands and changes and deliver innovation in
8
both trading and non-trading businesses to provide high-quality data and services to market
participants and clients.
Purpose, Vision & Values
SE's identity crafted in the nineties has for the last 25 years, stood for reliability, expertise,
innovation and trust. In the last 25 years, the Indian economy and technology landscape has
changed dramatically. So has NSE.
NSE's new identity reflect its multi-dimensional nature: multiple asset classes, multiple customer
segments, and its multiple roles including, exchange, regulator, index provider, data and analytics,
IT services, educator and market developer.
The new identity depicts growth with a modern representation of a blooming flower. The multiple
colours capture the multi-faceted nature of the business. The red denotes NSE's strong foundation,
the yellow and orange are inspired by the flower for prosperity and auspicious ventures the
marigold, and the blue triangle is a compass, always future-oriented and helping us find our true
North.
The sharp edges indicate technology, precision and efficiency. The shape also amplifies NSE's
tradition of collaboration. The internal vectors depict NSE's DNA of continuously pushing
boundaries.
9
History & Milestones
NSE's sustained leadership positions across asset classes in the Indian and global exchange sectors
demonstrates the robustness and liquidity of our exchange.
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.
Between 1994 and 2016, we expanded our lines of business and product offerings through the
following key milestones:
YEAR MILESTONES
NSE launches new brand identity for NIFTY Indices

Proposed NSE IFSC-SGX Connect receives regulatory dispensations
NSE EMERGE achieves 200th SME listing milestone
NSE Commodities Segment gets recognition from CBDT
2019 - NSE opens Centre for Behavioral Science at IIMA
2020
Launch of Interest Rate Options on Government of India bonds
NSE Indices launches Nifty BHARAT Bond Index Series
NSE declared world’s largest derivatives exchange 2019 by WFE
NSE launches Request for Quote (RFQ) Platform in Debt Securities
Launched Commodity Derivatives segment, goBidMobile app for governmentsecurities and

Tri-PartyRepo of Corporate DebtSecurities.
Weekly option on NIFTY 50 was launched
2018 - E-voting for corporates
2019
NSE derivatives access was extended to US clients
Signs Post-Trade Technology and StrategicPartnership Agreement withNasdaq
MoU with London Stock Exchange Group
Launched currency derivatives on Non-FCYINR pairs

2017 - Launched NIFTY SME EMERGE Index and 72 fixed income and three hybrid indices
2018
Entered into a MOU with The Colombo Stock Exchange (CSE)
2016 - Promoted NSE IFSC, the International Stock Exchange in India’s first IFSC SEZ at GIFT
2017 City Gandhinagar
10
YEAR MILESTONES
Launched NIFTY 50 index futures trading onTAIFEX

2015 - Launched platform for sovereign gold bondissuance
2016
Launched an electronic book-building platform forthe private placement ofdebt securities
Entered into a memorandum of understanding to enhance co-operation with the London

2014 - Stock Exchange Group
2015
Renamed CNX NIFTY to NIFTY 50
Launched NMF-II platform for mutual funds

2013 - Launched NBF II segment for interest rate futures
2014 Launched trading on India VIX index futures
Commenced trading onNIFTY 50 (then known asCNX NIFTY) on the OsakaExchange
2012 - Launched the New Debt Segment (NDS)

2013
2011 - Commenced trading in index futures and options contracts on the FTSE 100 index
2012 Launched SME-specific EMERGE platform for the listing and trading of securities of SMEs
2010 - Commenced trading in index futures and options on global indices, namely the S&P 500 and
2011 Dow Jones Industrial Average
2009 - Launched NOW platform for mobile devices

2010 Launched trading in currency options
2008 - Launched Mutual Fund Service System (MFSS)

2009
Became the first exchange in India to offer trading inCurrency Futures

2007 - Introduced the Securities Lending and BorrowingScheme (SLBS)
2008
Launched the NOW platform for web-based trading
2005 - Incorporated NSE InfoTech Ltd., a wholly-owned subsidiary for IT research and

2006 development
2004 - Launched NIFTY Bank index derivatives
11
YEAR MILESTONES
2005
2001 - Launched ETF listings

2002
Launched index options based on the NIFTY 50index (then known as S&PCNX NIFTY) for
2000 - trading
2001
Launched single stock futures and options onlisted securities
Incorporated NSE Data & Analytics Limited (formerly known as DotEx International

1999 - Limited), a wholly-owned subsidiary, and consolidated the data and info-vending
2000 business under Data & Analytics Limited
Established NSEIT, a wholly-owned subsidiaryand a global technologyfirm, that provides

1998 - end-to-end technology solutions,including application services,infrastructure
1999 services,analytics as a service and IT-enabled services
1997 - Established NSE Indices Limited (formerly known as India Index Services & Products
1998 Limited) a subsidiary, as a joint venture with CRISIL Limited to operate an indices business
1995 - Created and administered a settlement fund

1996 Launched NIFTY 50 Index Commenced trading and settlement in dematerialised securities
1993 - Launched the equity and wholesale debt market segments

1994 Commenced electronic or screen-based trading.
12
Awards & recognition
2019 - 20
2020 Best of the Best Award for being the Index provider of the year, India
2020 Best of the Best Award for ETF Index Provider of the year, India
World’s Largest Derivative Exchange in terms of contracts traded
2018 - 19
Innovative Practices Award 2018 on Sustainable Development Goals
UN Global Compact Network India
CSR Times Awards for Best Project in Education under the Corporate Foundation Category
2017 - 18
FICCI CSR Award for Exemplary Innovation
Capital Market: Vision 2020 - Best Stock Exchange of India
7th Annual Greentech HR Award 2017
Golden Peacock Award for Corporate Social Responsibilty
ET NOW – CSR Leadership Award
Green IT award
India Achievers Awards, 2018 - NSE SME Driver of Entre-preneurship
Datacenter Summit and Awards 2017 for Innovation
Architecting a Digital Transformation Journey
Ranked among India’s Top 50 companies to work for

13
Recognised for being among the best in India’s financial services industry
2016 - 17
CII - Exim Bank Prize for Business Excellence
Global Architecture Excellence Awards 2016 - New Service Offering Initiative
2015 - 16
Golden Peacock Innovative Product / Service Award
The Asian Banker Achievement Awards 2015 - Stock Exchange of the Year
FOW Awards for Asia - Best New Technology Product - Market Surveillance
2014 - 15
Futures and Options World Award for Indian Exchange of the Year
Global Finance - Best Derivatives Providers Award 2014 for exchange performance
CII-Exim Bank Prize for Business Excellence
2013 - 14
Capital Finance International - Best Stock Exchange Award, India
14
Nifty 50
The NIFTY 50 is a benchmark Indian stock market index that represents the weighted average of

50 of the largest Indian companies listed on the National Stock Exchange. It is one of the two main
stock indices used in India, the other being the BSE SENSEX.
Nifty 50 is owned and managed by NSE Indices (previously known as India Index Services &
Products Limited), which is a wholly owned subsidiary of the NSE Strategic Investment
Corporation Limited. NSE Indices had a marketing and licensing agreement with Standard &
Poor's for co-branding equity indices until 2013. The Nifty 50 index was launched on 22 April
1996, and is one of the many stock indices of Nifty.
The NIFTY 50 index has shaped up to be the largest single financial product in India, with an
ecosystem consisting of exchange-traded funds (onshore and offshore), exchange-traded options
at NSE, and futures and options abroad at the SGX.[7] NIFTY 50 is the world's most actively traded
contract. WFE, IOM and FIA surveys endorse NSE's leadership position.
The NIFTY 50 index covers 13 sectors (as on 30 April 2021) of the Indian economy and offers
investment managers exposure to the Indian market in one portfolio. Between 2008 & 2012, the
NIFTY 50 index's share of NSE's market capitalisation fell from 65% to 29%[10] due to the rise of
sectoral indices like NIFTY Bank, NIFTY IT, NIFTY Pharma, NIFTY SERV SECTOR, NIFTY
Next 50, etc. The NIFTY 50 Index gives a weightage of 39.47% to financial services, 15.31%
to Energy, 13.01% to IT, 12.38% to consumer goods, 6.11% to Automobiles and 0% to
the agricultural sector.
The NIFTY 50 index is a free float market capitalisation weighted index. The index was initially
calculated on a full market capitalisation methodology. On 26 June 2009, the computation was
changed to a free-float methodology.[12] The base period for the NIFTY 50 index is 3 November
1995, which marked the completion of one year of operations of the National Stock Exchange
Equity Market Segment. The base value of the index has been set at 1000 and a base capital of ₹
2.06 trillion.
15
Constituents
Company Name Symbol Sector
Adani Ports ADANIPORTS Infrastructure
Apollo Hospitals APOLLOHOSP Healthcare
Asian Paints ASIANPAINT Consumer Goods
Axis Bank AXISBANK Banking
Bajaj Auto BAJAJ-AUTO Automobile
Bajaj Finance BAJFINANCE Financial Services
Bajaj Finserv BAJAJFINSV Financial Services
Bharat Petroleum BPCL Energy - Oil & Gas
Bharti Airtel BHARTIARTL Telecommunication
Britannia Industries BRITANNIA Consumer Goods
Cipla CIPLA Pharmaceuticals
Coal India COALINDIA Metals
Divi's Laboratories DIVISLAB Pharmaceuticals

16
Dr. Reddy's Laboratories DRREDDY Pharmaceuticals
Eicher Motors EICHERMOT Automobile
Grasim Industries GRASIM Cement
HCL Technologies HCLTECH Information Technology
HDFC HDFC Financial Services
HDFC Bank HDFCBANK Banking
HDFC Life HDFCLIFE Financial Services
Hero MotoCorp HEROMOTOCO Automobile
Hindalco Industries HINDALCO Metals
Hindustan Unilever HINDUNILVR Consumer Goods
ICICI Bank ICICIBANK Banking
IndusInd Bank INDUSINDBK Banking
Infosys INFY Information Technology
ITC Limited ITC Consumer Goods
17
JSW Steel JSWSTEEL Metals
Kotak Mahindra Bank KOTAKBANK Banking
Larsen & Toubro LT Construction
Mahindra & Mahindra M&M Automobile
Maruti Suzuki MARUTI Automobile
Nestlé India NESTLEIND Consumer Goods
NTPC NTPC Energy - Power
Oil and Natural Gas Corporation ONGC Energy - Oil & Gas
Power Grid Corporation of India POWERGRID Energy - Power
Reliance Industries RELIANCE Energy - Oil & Gas
SBI Life Insurance Company SBILIFE Financial Services
Shree Cements SHREECEM Cement
State Bank of India SBIN Banking
Sun Pharmaceutical SUNPHARMA Pharmaceuticals
18
Tata Consultancy Services TCS Information Technology
Tata Consumer Products TATACONSUM Consumer Goods
Tata Motors TATAMOTORS Automobile
Tata Steel TATASTEEL Metals
Tech Mahindra TECHM Information Technology
Titan Company TITAN Consumer Durables
UltraTech Cement ULTRACEMCO Cement
United Phosphorus Limited UPL Chemicals
Wipro WIPRO Information Technology[15]
Index changes
19
Former Date of
Replace Re
Constituen Symbol Sector Symbol Replacem
d By f
t ent
Satyam
SATYAMCO Information Reliance RELCAPITA 12 January
Computer [16]
MP Technology Capital L 2009
Services
BAJAJ-
ABB India ABB Engineering Bajaj Auto
AUTO
Dr.
1 October
Telecommunica Reddy's [17]
Idea Cellular IDEA DRREDDY 2010
tion Laboratorie
s
Unitech UNITECH Realty Sesa Goa VEDL
Grasim 25 March
Suzlon SUZLON Energy - Power GRASIM [18]
Industries 2011
Reliance RELCAPITA Financial 10 October

Coal India COALINDIA [19]
Capital L Services 2011
Reliance
Telecommunica Asian ASIANPAIN
Communicati RCOM
tion Paints T
ons
27 April [20]
2012
Reliance Bank of BANKBARO
RPOWER Energy - Power
Power Baroda DA
20
Former Date of
Replace Re
d By f
t ent
Steel
Lupin
Authority of SAIL Metals LUPIN
Limited
India 28
September [21]
2012
Sterlite UltraTech ULTRACEM
STERLITE Metals
Industries Cement CO
IndusInd INDUSINDB
Siemens SIEMENS Engineering
Bank K
1 April 2013 [22]
Information
Wipro WIPRO NMDC NMDC
Technology
27
Reliance
RELINFRA Construction Wipro WIPRO September [23]
Infrastructure
2013
Tech
JP Associates JPASSOCIAT Construction TECHM
Mahindra
28 March [24]
2014
Ranbaxy United MCDOWELL
RANBAXY Pharmaceuticals
Laboratories Spirits -N
Zee
19
MCDOWELL Consumer Entertainm
United Spirits ZEEL September [25]
-N Goods ent
2014
Enterprises
DLF DLF Realty Idea IDEA 27 March [22]
Cellular 2015
21
Former Date of
Replace Re
d By f
t ent
Jindal Steel &

JINDALSTEL Metals Yes Bank YESBANK
Power
Financial Bosch
IDFC IDFC BOSCHLTD 29 May 2015 [25]
Services India
Adani 28
ADANIPORT
NMDC NMDC Metals Ports & September [26]
S
SEZ 2015
Energy - Oil & Aurobindo AUROPHAR

Cairn India CAIRN
Gas Pharma MA
Punjab
Bharti
National PNB Banking INFRATEL 1 April 2016 [27]
Infratel
Bank
Vedanta Eicher
VEDL Metals EICHERMOT
Limited Motors
Indiabulls
IBULHSGFI
BHEL BHEL Engineering Housing
N
Finance
31 March [28]
2017
Indian Oil
Telecommunica
Idea Cellular IDEA Corporatio IOC
tion
n
Grasim Vedanta
GRASIM Textiles VEDL 26 May 2017 [29]
Industries Limited
22
Former Date of
Replace Re
d By f
t ent
Bajaj BAJFINANC
ACC ACC Cement
Finance E
29
Bank of BANKBARO Hindustan
Banking HINDPETRO September [30]
Baroda DA Petroleum
2017
TATAPOWE
Tata Power Energy - Power UPL UPL
R
Ambuja AMBUJACE Bajaj

Cement BAJAJFINSV
Cements M Finserv
Aurobindo AUROPHAR Grasim

Pharmaceuticals GRASIM 2 April 2018 [31]
Pharma MA Industries
Titan
Bosch India BOSCHLTD Engineering TITAN
Company
28
Lupin
LUPIN Pharmaceuticals JSW Steel JSWSTEEL September [32]
Limited
2018
Hindustan Energy - Oil & Britannia February

HINDPETRO BRITANNIA [33]
Petroleum Gas Industries 2019
Indiabulls 27
IBULHSGFI Financial Nestlé
Housing NESTLE September [34]
N Services India
Finance 2019
Yes Bank YESBANK Banking Shree SHREECEM 19 March [35]
23
Former Date of
Replace Re
d By f
t ent
Cement 2020
Vedanta
VEDL Metals HDFC Life HDFCLIFE 31 July 2020 [36]
Limited
Zee SBI Life

Entertainment ZEEL Media Insurance SBILIFE
Enterprises Company
September [30]
2020
Divi's
Bharti Telecommunica
INFRATEL Laboratorie DIVISLAB
Infratel tion
s
Tata
Energy - Oil & TATACONS 31 March
GAIL GAIL Consumer [37]
Gas UM 2021
Products
Indian Oil Energy - Oil & Apollo APOLLOHO 31 March [38]

IOC
Corp Gas Hospitals SP 2022
24
Major single day gains
Sl.
Date High Probable reason
No.
651.50 points Ovewhelmingly upbeat results of the 2009 Indian general

1 18 May 2009
(17.74%) election; caused multiple trading curbs.
421.10 points
2 20 May 2019 Exit Polls of 2019 General elections.
(3.69%)
300.90 points Results of the 2019 General Elections in

3 23 May 2019
(2.49%) which NDA alliance wins.
8 August 176.95 points

4 FPI surcharge rollback.[56]
2019 (1.63%)
26 August 234.45 points

5 Relief measures, likely US-China trade talks begin.[57]
2019 (2.16%)
Indian FM announced a cut in the corporate tax rate for

20 September 655.45 points
6 domestic companies and new domestic manufacturing
2019 (6.12%)
companies.[58]
23 September 420.65 points

7 Following a corporate tax cut in India.
2019 (3.73%)
708.40 points Positive news that infection numbers were peaking in some
8 7 April 2020
(8.76%) of the worst affected areas around the world.[59]
25
646.60 points
9 1 Feb 2021 Union budget day by Nirmala Sitharaman.
(4.74%)
366.65
10 2 Feb 2021 Union budget reaction.
(2.57%)
509.65 points
11 15 Feb 2022 Russia withdraws troops from Ukraine border.[60]
(3.03%)
Annual returns
The following table shows the annual development of the NIFTY 50 since 2000.[61] The historical
daily returns data can be accessed from the NSE website.[62]
Yea Change in Index Change in Index

Closing level
r in Points in %
2000 1,263.55 −216.90 −14.65
2001 1,059.05 −204.50 −13.94
2002 1,093.50 34.45 3.25
2003 1,879.75 786.25 71.90
2004 2,080.50 200.75 10.68
2005 2,836.55 756.05 36.34
2006 3,966.40 1,129.85 39.83
26
Closing level
r in Points in %
2007 6,138.60 2,172.20 54.77
2008 2,959.15 −3,179.45 −51.79
2009 5,201.05 2,241.90 75.76
2010 6,134.50 933.45 17.95
2011 4,624.30 −1,510.20 −24.62
2012 5,905.10 1,280.80 27.70
2013 6,304.00 398.90 6.76
2014 8,282.70 1,978.70 31.39
2015 7,964.35 −318.35 −3.84
2016 8,185.80 239.45 3.01
2017 10,530.70 2,344.90 28.65
2018 10,862.55 331.85 3.15
2019 12,168.45 1,305.90 12.02
2020 13,981.75 1,813.30 14.90

27
Closing level
r in Points in %
24.12
2021 17,354.05 3,372.30
Derivatives
Trading in call and put options on the Nifty 50 are offered by the NSE.[63] The exchange offers
weekly as well as monthly expiry.
NIFTY Next 50
NIFTY Next 50, also called NIFTY Junior, is an index of 50 companies whose free float market
capitalisation comes after that of the companies in NIFTY 50. NIFTY Next 50 constituents are thus
potential candidates for future inclusion in NIFTY 50.[64]
NIFTY sectoral indices
Index[65][66] Constituents
Ashok Leyland, Bajaj Auto, Balkrishna Industries, Bharat Forge, Bosch

NIFTY Auto India, Eicher Motors, Escorts, Hero Motocorp, Mahindra & Mahindra, Maruti
Suzuki, MRF, Sona BLW Precision, Tata Motors, Tube Investments, TVS Motors
Axis Bank, AU Small Finance Bank, Bandhan Bank, Bank of Baroda, Federal

NIFTY Bank Bank, HDFC Bank, ICICI Bank, IDFC First Bank, IndusInd Bank, Kotak Mahindra
Bank, Punjab National Bank, State Bank of India
NIFTY Amber Enterprises, Bata India, Blue Star, Crompton Greaves, Dixon

Consumer Technologies, Havells, Kajaria Ceramics, Orient Electric, Rajesh
28
Durables Exports, Relaxo, Titan Company, TTK Prestige, V-Guard, Voltas, Whirlpool India
Axis Bank, Bajaj Finance, Bajaj Finserv, Cholamandalam, HDFC, HDFC

NIFTY AMC, HDFC Bank, HDFC Life, ICICI Bank, ICICI Lombard, ICICI
Financial Prudential, Kotak Mahindra Bank, Muthoot Finance, Piramal Enterprises, Power
Services Finance Corporation, REC, SBI Card, SBI Life Insurance Company, Shriram
Transport Finance, State Bank of India
Britannia, Colgate-Palmolive India, Dabur, Emami, Godrej Consumer

Products, Hindustan Unilever, ITC, Marico, Nestlé India, Procter & Gamble
NIFTY FMCG
Hygiene and Health Care, Radico Khaitan, Tata Consumer Products, United
Breweries, United Spirits, Varun Beverages
Abbott India, Alkem Laboratories, Apollo Hospitals, Aurobindo

Pharma, Biocon, Cipla, Divi's Laboratories, Dr Lal PathLabs, Dr. Reddy's
NIFTY
Laboratories, Glenmark Pharmaceuticals, Granules, Ipca Laboratories, Laurus
Healthcare
Labs, Lupin, Metropolis Healthcare, Pfizer India, Sun
Pharmaceutical, Syngene, Torrent Pharmaceuticals, Zydus Lifesciences
Coforge, HCL Technologies, Infosys, L&T Infotech, L&T Technology

NIFTY IT
Services, Mindtree, Mphasis, Tata Consultancy Services, Tech Mahindra, Wipro
Dish TV, Hathway, INOX Leisure, Nazara Technologies, Network18, PVR

NIFTY Media
Cinemas, Saregama, Sun TV Network, TV18, Zee Entertainment Enterprises
Adani Enterprises, APL Apollo Tubes, Hindalco, Hindustan Copper, Hindustan

Zinc, Jindal Stainless, Jindal Steel, JSW Steel, National Aluminium
NIFTY Metal
Company, NMDC, Ratnamani Metals & Tubes, Steel Authority of India, Tata
Steel, Vedanta, Welspun Corp
Adani Total Gas, Aegis Logistics, BPCL, Castrol, GAIL, Gujarat Gas, Gujarat State

NIFTY Oil &
Petronet, HPCL, Indraprastha Gas, IOC, Mahanagar Gas, Oil
Gas
India, ONGC, Petronet LNG, Reliance Industries
29
Abbott India, Alembic Pharmaceuticals, Alkem Laboratories, Aurobindo

Pharma, Biocon, Cipla, Divi's Laboratories, Dr. Reddy's Laboratories, Gland
NIFTY Pharma Pharma, Glenmark Pharmaceuticals, Granules, Ipca Laboratories, Laurus
Labs, Lupin, Natco Pharma, Pfizer India, Strides Pharma, Sun
Pharmaceutical, Torrent Pharmaceuticals, Zydus Lifesciences
NIFTY Private Axis Bank, Bandhan Bank, City Union Bank, Federal Bank, HDFC Bank, ICICI

Bank Bank, IDFC First Bank, IndusInd Bank, Kotak Mahindra Bank, RBL Bank
Bank of Baroda, Bank of Maharashtra, Bank of India, Canara Bank, Central Bank of

NIFTY PSU
India, Indian Bank, Indian Overseas Bank, Punjab & Sind Bank, Punjab National
Bank
Bank, State Bank of India, UCO Bank, Union Bank of India
Brigade Enterprises, Brookfield India REIT, DLF, Embassy Office Parks

NIFTY Realty REIT, Godrej Properties, Indiabulls Real Estate, Macrotech Developers, Mindspace
Business Parks REIT, Oberoi Realty, Phoenix Mills, Prestige Estates
Bombay Stock Exchange (BSE)
BSE is Asia’s first as well as the oldest stock exchange in India. It was established in
1875 and is located in Mumbai. It has a total of ~5,295 companies listed out of which
~3,972 are available for trading as on August 21, 2017. BSE Sensex is the flagship
index of BSE. It measures the performance of the 30 largest, most liquid and
financially stable companies across key sectors.
Established in 1875, BSE (formerly known as Bombay Stock Exchange), is Asia's first & the
Fastest Stock Exchange in world with the speed of 6 micro seconds and one of India's leading
exchange groups. Over the past 143 years, BSE has facilitated the growth of the Indian corporate
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sector by providing it an efficient capital-raising platform. Popularly known as BSE, the bourse was
established as ‘The Native Share & Stock Brokers' Association’ in 1875. In 2017 BSE become the
1st listed stock exchange of India.
Today BSE provides an efficient and transparent market for trading in equity, currencies, debt
instruments, derivatives, mutual funds. BSE SME is India’s largest SME platform which has listed
over 250 companies and continues to grow at a steady pace. BSE StAR MF is India’s largest online
mutual fund platform which process over 27 lakh transactions per month and adds almost 2 lakh
new SIPs ever month. BSE Bond, the transparent and efficient electronic book mechanism process
for private placement of debt securities, is the market leader with more than Rs 2.09 lakh crore of
fund raising from 530 issuances. (F.Y. 2017-2018).
Keeping in line with the vision of Shri Narendra Modi, Hon’be Prime Minister of India, BSE has
launched India INX, India's 1st international exchange, located at GIFT CITY IFSC in Ahmedabad.
Indian Clearing Corporation Limited, a wholly owned subsidiary of BSE, acts as the central
counterparty to all trades executed on the BSE trading platform and provides full novation,
guaranteeing the settlement of all bonafide trades executed.
BSE Institute Ltd, another fully owned subsidiary of BSE runs one of the most respected capital
market educational institutes in the country.
BSE has also launched BSE Sammaan, the CSR exchange, is a 1st of its kind initiative which aims
to connect corporate with verified NGOs
BSE's popular equity index - the S&P BSE SENSEX - is India's most widely tracked stock market
benchmark index. It is traded internationally on the EUREX as well as leading exchanges of the
BRCS nations (Brazil, Russia, China and South Africa)
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Vision
"Emerge as the premier Indian stock exchange with best-in-class global practice in technology,
products innovation and customer service."
CSR (Corporate Social Responsibility)
Corporate Social Responsibility (CSR) in BSE is aligned with its tradition of creating wealth in the
community with a three pronged focus on Education, Health and the Environment. Besides funding
charitable causes for the elderly and the physically challenged, BSE has been supporting the
rehabilitation and restoration efforts in earthquake-hit communities of Gujarat. BSE has been
awarded the Golden Peacock Global - CSR Award for its initiatives in Corporate Social
Responsibility (CSR) by the World Council of Corporate Governance.
Different Market Participants
There are a lot of individuals and corporate houses who trade in a stock market.
Anyone who buys/sells shares in a stock market is termed as a market participant.
Some of the categories of market participants are as follows:
 Domestic Retail Participants-These are individuals who transact in the markets.
 NRI’s and Overseas Citizen of India (OCI)-These are people of Indian origin who
reside outside India.
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 Domestic Institutions-These are large corporate entities based in India (for example:
LIC of India).
 Domestic Asset Management Companies (AMC)-The market participants in this

category would be mutual fund companies like HDFC AMC, SBI Mutual Fund, DSP
Black Rock and many more similar entities.
 Foreign Institutional Investors-FIIs are Non-Indian corporate entities such as foreign

asset management companies, hedge funds and other investors.
Regulator of the Indian Stock Market
Securities Exchange Board of India
Securities Exchange Board of India (SEBI) is the regulatory body of the Indian Stock
Markets. The main objective of SEBI is to safeguard the interest of retail investors,
promote the development of stock exchanges, and regulate the activities of financial
intermediaries and investors in the market. SEBI ensures the following:
 The stock exchanges (BSE and NSE), brokers and sub-brokers conduct their business
fairly.
 Corporate houses should not use markets as a mean to unfairly benefit themselves
 Small retail investors’ interest is protected.
 Large investors with huge cash should not manipulate markets.
Types of Financial Intermediaries in the Stock Market
From the time an investor places his order to buy shares till the time it is transferred
to his Demat account, a number of corporate entities are involved to ensure smooth
transaction. These entities are known as financial intermediaries and they work
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according to the rules and regulations prescribed by SEBI. Some of the financial
intermediaries are discussed below:
Stock Broker
A stock broker also known as a dealer is a professional individual who buys/sells

shares on behalf of its clients. A stock broker is registered as a trading member with
the stock exchange and holds a stock broking license. They operate under the
guidelines prescribed by SEBI. An individual needs to open trading/DEMAT account
to transact in the financial market.
Depository and Depository Participants
A Depository is a financial intermediary that offers the service of DEMAT account.

A DEMAT account will have all the shares that an investor owns in electronic
format. In India, there are only two depositaries which offers DEMAT account
services - National Securities Depository Limited (NSDL) and Central Depository
Services (India) Limited (CDSL). An investor cannot directly go to the depositary to
open the DEMAT account. He needs to appoint a Depository Participant (DP).
According to SEBI guidelines, banks, financial institutions and members of stock
exchanges registered with SEBI can become DPs.
Banks
Banks help to transfer funds from a bank account to a trading account. The client
needs to categorically mention which bank account has to be linked to the trading
account to the stock broker at the time of opening the trading account.
National Security Clearing Corporation Ltd (NSCCL) and Indian Clearing

Corporation Ltd (ICCL)
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NSCCL and ICCL are 100% subsidiaries of National Stock Exchange and Bombay
Stock Exchange respectively. They ensure guaranteed settlement of transactions
carried in stock exchanges. The clearing corporation ensures there are no defaults
either from buyers or sellers side.
DEMAT Account and Trading Account
In order to trade in equities, it is mandatory to have a DEMAT account as well as the

Trading account.
DEMAT Account
DEMAT account or dematerialized account allows holding shares in electronic form

instead of taking physical possession of certificates. It is mandatory to have a
DEMAT account to trade in shares. DEMAT account holds all the investments an
individual makes in shares, exchange traded funds, bonds, government securities, and
mutual funds in one place.
How to open DEMAT Account?
Below mentioned are the steps to open DEMAT account in India:
 To open a DEMAT account; an individual has to approach a depository participant

(DP), an agent of depository, and fill up an account opening form. The list of DPs is
available on the website of depository’s i.e. CDSL and NSDL.
 An individual must attach photocopies of KYC documents like identity proof, proof
of address along with the account opening form.
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 The DP will provide the depository participant ID or client ID. All the purchase / sale
of shares will be through DEMAT Account
Trading Account
A trading account is used to place buy/sell orders in the stock market. One can open
their trading account with a stock broker who is registered with SEBI. An order can
be placed either through an online or offline mode. In the online mode, one can
buy/sell stocks through the trading terminal provided by the broker whereas; in the
offline mode, an individual can ask its broker to place an order on his/her behalf
Key takeaways
 A stock market is a place where people buy/sell shares or stocks of publicly listed
companies.
 NSE and BSE are the two major stock exchanges in India.
 An individual has to mandatorily open a trading account to trade in the stock market.
 There are different market participants like retail investors, domestic institutions and
foreign institutional investors
 Indian stock market is governed by SEBI.
 There are different financial intermediaries like stock broker, banks, depository
participants etc.
 DEMAT account or dematerialized account allows holding shares in electronic form

instead of taking physical possession of certificates.
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Derivatives
Definition: A derivative is a contract between two parties which derives its value/price from an
underlying asset. The most common types of derivatives are futures, options, forwards and swaps.
Description: It is a financial instrument which derives its value/price from the underlying assets.
Originally, underlying corpus is first created which can consist of one security or a combination of
different securities. The value of the underlying asset is bound to change as the value of the
underlying assets keep changing continuously.
Generally stocks, bonds, currency, commodities and interest rates form the underlying asset.
The term derivative refers to a type of financial contract whose value is dependent on
an underlying asset, group of assets, or benchmark. A derivative is set between two or more parties
that can trade on an exchange or over-the-counter (OTC). These contracts can be used to trade any
number of assets and carry their own risks. Prices for derivatives derive from fluctuations in the
underlying asset. These financial securities are commonly used to access certain markets and may
be traded to hedge against risk.
KEY TAKEAWAYS
 Derivatives are financial contracts, set between two or more parties, that derive their value
from an underlying asset, group of assets, or benchmark.
 A derivative can trade on an exchange or over-the-counter.
 Prices for derivatives derive from fluctuations in the underlying asset.
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 Derivatives are usually leveraged instruments, which increases their potential risks and
rewards.
 Common derivatives include futures contracts, forwards, options, and swaps.
Understanding Derivatives
A derivative is a complex type of financial security that is set between two or more parties. Traders
use derivatives to access specific markets and trade different assets. The most common underlying
assets for derivatives are stocks, bonds, commodities, currencies, interest rates, and market
indexes. Contract values depend on changes in the prices of the underlying asset.
Derivatives can be used to hedge a position, speculate on the directional movement of an

underlying asset, or give leverage to holdings. These assets are commonly traded on exchanges
or over-the-counter (OTC) and are purchased through brokerages. The Chicago Mercantile
Exchange (CME) is among the world's largest derivatives exchanges. 1
OTC-traded derivatives generally have a greater possibility of counterparty risk, which is the
danger that one of the parties involved in the transaction might default. These contracts trade
between two private parties and are unregulated. To hedge this risk, the investor could purchase a
currency derivative to lock in a specific exchange rate. Derivatives that could be used to hedge this
kind of risk include currency futures and currency swaps.

Exchange-traded derivatives are standardized and more heavily regulated than those that are traded
over the counter.
Special Considerations
Derivatives were originally used to ensure balanced exchange rates for internationally traded
goods. International traders needed a system to account for the differing values of
national currencies.
Assume a European investor has investment accounts that are all denominated in euros (EUR).
Let's say they purchase shares of a U.S. company through a U.S. exchange using U.S. dollars
(USD). This means they are now exposed to exchange rate risk while holding that stock. Exchange
rate risk is the threat that the value of the euro will increase in relation to the USD. If this happens,
any profits the investor realizes upon selling the stock become less valuable when they are
converted into euros.
A speculator who expects the euro to appreciate compared to the dollar could profit by using a
derivative that rises in value with the euro. When using derivatives to speculate on the price
movement of an underlying asset, the investor does not need to have a holding
or portfolio presence in the underlying asset.
Many derivative instruments are leveraged, which means a small amount of capital is required to
have an interest in a large amount of value in the underlying asset.
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Types of Derivatives
Derivatives are now based on a wide variety of transactions and have many more uses. There are
even derivatives based on weather data, such as the amount of rain or the number of sunny days in
a region.
There are many different types of derivatives that can be used for risk management, speculation,
and leveraging a position. The derivatives market is one that continues to grow, offering products
to fit nearly any need or risk tolerance. The most common types of derivatives are futures,
forwards, swaps, and options.
Futures
A futures contract, or simply futures, is an agreement between two parties for the purchase and
delivery of an asset at an agreed-upon price at a future date. Futures are standardized contracts that
trade on an exchange. Traders use a futures contract to hedge their risk or speculate on the price of
an underlying asset. The parties involved are obligated to fulfill a commitment to buy or sell the
underlying asset.
For example, say that on Nov. 6, 2021, Company A buys a futures contract for oil at a price of
$62.22 per barrel that expires Dec. 19, 2021. The company does this because it needs oil in
December and is concerned that the price will rise before the company needs to buy. Buying an oil
futures contract hedges the company's risk because the seller is obligated to deliver oil to Company
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A for $62.22 per barrel once the contract expires. Assume oil prices rise to $80 per barrel by Dec.
19, 2021. Company A can accept delivery of the oil from the seller of the futures contract, but if it
no longer needs the oil, it can also sell the contract before expiration and keep the profits.
In this example, both the futures buyer and seller hedge their risk. Company A needed oil in the
future and wanted to offset the risk that the price may rise in December with a long position in an
oil futures contract. The seller could be an oil company concerned about falling oil prices and
wanted to eliminate that risk by selling or shorting a futures contract that fixed the price it would
get in December.
It is also possible that one or both of the parties are speculators with the opposite opinion about the
direction of December oil. In that case, one might benefit from the contract, and one might not.
Take, for example, the futures contract for West Texas Intermediate (WTI) oil that trades on the
CME and represents 1,000 barrels of oil. If the price of oil rose from $62.22 to $80 per barrel, the
trader with the long position—the buyer—in the futures contract would have profited $17,780
[($80 - $62.22) x 1,000 = $17,780]. The trader with the short position—the seller—in the contract
would have a loss of $17,780.
Cash Settlements of Futures
Not all futures contracts are settled at expiration by delivering the underlying asset. If both parties
in a futures contract are speculating investors or traders, it is unlikely that either of them would
want to make arrangements for the delivery of several barrels of crude oil. Speculators can end
their obligation to purchase or deliver the underlying commodity by closing (unwinding) their
contract before expiration with an offsetting contract.
Many derivatives are in fact cash-settled, which means that the gain or loss in the trade is simply
an accounting cash flow to the trader's brokerage account. Futures contracts that are cash-settled
include many interest rate futures, stock index futures, and more unusual instruments like volatility
futures or weather futures.
Forwards
Forward contracts or forwards are similar to futures, but they do not trade on an exchange. These
contracts only trade over-the-counter. When a forward contract is created, the buyer and seller may
customize the terms, size, and settlement process. As OTC products, forward contracts carry a
greater degree of counterparty risk for both parties.
Counterparty risks are a type of credit risk in that the parties may not be able to live up to the
obligations outlined in the contract. If one party becomes insolvent, the other party may have no
recourse and could lose the value of its position.
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Once created, the parties in a forward contract can offset their position with other counterparties,
which can increase the potential for counterparty risks as more traders become involved in the
same contract.
Swaps
Swaps are another common type of derivative, often used to exchange one kind of cash flow with
another. For example, a trader might use an interest rate swap to switch from a variable interest
rate loan to a fixed interest rate loan, or vice versa.
Imagine that Company XYZ borrows $1,000,000 and pays a variable interest rate on the loan that
is currently 6%. XYZ may be concerned about rising interest rates that will increase the costs of
this loan or encounter a lender that is reluctant to extend more credit while the company has this
variable rate risk.
Assume XYZ creates a swap with Company QRS, which is willing to exchange the payments
owed on the variable-rate loan for the payments owed on a fixed-rate loan of 7%. That means that
XYZ will pay 7% to QRS on its $1,000,000 principal, and QRS will pay XYZ 6% interest on the
same principal. At the beginning of the swap, XYZ will just pay QRS the 1% difference between
the two swap rates.
If interest rates fall so that the variable rate on the original loan is now 5%, Company XYZ will
have to pay Company QRS the 2% difference on the loan. If interest rates rise to 8%, then QRS
would have to pay XYZ the 1% difference between the two swap rates. Regardless of how interest
rates change, the swap has achieved XYZ's original objective of turning a variable-rate loan into
a fixed-rate loan.
Swaps can also be constructed to exchange currency exchange rate risk or the risk of default on a
loan or cash flows from other business activities. Swaps related to the cash flows and potential
defaults of mortgage bonds are an extremely popular kind of derivative. In fact, they've been a bit
too popular in the past. It was the counterparty risk of swaps like this that eventually spiraled into
the credit crisis of 2008.
Options
An options contract is similar to a futures contract in that it is an agreement between two parties to
buy or sell an asset at a predetermined future date for a specific price. The key difference between
options and futures is that with an option, the buyer is not obliged to exercise their agreement to
buy or sell. It is an opportunity only, not an obligation, as futures are. As with futures, options may
be used to hedge or speculate on the price of the underlying asset.

In terms of timing your right to buy or sell, it depends on the "style" of the option. An American
option allows holders to exercise the option rights at any time before and including the day of
expiration. A European option can be executed only on the day of expiration. Most stocks and
exchange-traded funds have American-style options while equity indices, including the S&P
500, have European-style options.
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Imagine an investor owns 100 shares of a stock worth $50 per share. They believe the stock's value
will rise in the future. However, this investor is concerned about potential risks and decides to
hedge their position with an option. The investor could buy a put option that gives them the right to
sell 100 shares of the underlying stock for $50 per share—known as the strike price—until a
specific day in the future—known as the expiration date.
Assume the stock falls in value to $40 per share by expiration and the put option buyer decides to
exercise their option and sell the stock for the original strike price of $50 per share. If the put
option cost the investor $200 to purchase, then they have only lost the cost of the option because
the strike price was equal to the price of the stock when they originally bought the put. A strategy
like this is called a protective put because it hedges the stock's downside risk.
Alternatively, assume an investor doesn't own the stock currently worth $50 per share. They
believe its value will rise over the next month. This investor could buy a call option that gives
them the right to buy the stock for $50 before or at expiration. Assume this call option cost $200
and the stock rose to $60 before expiration. The buyer can now exercise their option and buy a
stock worth $60 per share for the $50 strike price for an initial profit of $10 per share. A call
option represents 100 shares, so the real profit is $1,000 less the cost of the option—the premium
—and any brokerage commission fees.
In both examples, the sellers are obligated to fulfill their side of the contract if the buyers choose to
exercise the contract. However, if a stock's price is above the strike price at expiration, the put will
be worthless and the seller (the option writer) gets to keep the premium as the option expires. If the
stock's price is below the strike price at expiration, the call will be worthless and the call seller will
keep the premium.
Advantages and Disadvantages of Derivatives
Advantages
As the above examples illustrate, derivatives can be a useful tool for businesses and investors
alike. They provide a way to do the following:
 Lock in prices
 Hedge against unfavorable movements in rates
 Mitigate risks
These pluses can often come for a limited cost.
Derivatives can also often be purchased on margin, which means traders use borrowed funds to
purchase them. This makes them even less expensive.
Disadvantages
Derivatives are difficult to value because they are based on the price of another asset. The risks for
OTC derivatives include counterparty risks that are difficult to predict or value. Most derivatives
are also sensitive to the following:
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 Changes in the amount of time to expiration
 The cost of holding the underlying asset
 Interest rates
These variables make it difficult to perfectly match the value of a derivative with the underlying
asset.
Since the derivative has no intrinsic value (its value comes only from the underlying asset), it is
vulnerable to market sentiment and market risk. It is possible for supply and demand factors to
cause a derivative's price and its liquidity to rise and fall, regardless of what is happening with the
price of the underlying asset.
Finally, derivatives are usually leveraged instruments, and using leverage cuts both ways. While it
can increase the rate of return, it also makes losses mount more quickly.
Pros
 Lock in prices
 Hedge against risk
 Can be leveraged
 Diversify portfolio
Cons
 Hard to value
 Subject to counterparty default (if OTC)
 Complex to understand
 Sensitive to supply and demand factors
What Are Derivatives?
Derivatives are securities whose value is dependent on or derived from an underlying asset. For
example, an oil futures contract is a type of derivative whose value is based on the market price of
43
oil. Derivatives have become increasingly popular in recent decades, with the total value of
derivatives outstanding currently estimated at over $600 trillion. 3
What Are Some Examples of Derivatives?
Common examples of derivatives include futures contracts, options contracts, and credit default
swaps. Beyond these, there is a vast quantity of derivative contracts tailored to meet the needs of a
diverse range of counterparties. In fact, since many derivatives are traded over the counter (OTC),
they can in principle be infinitely customized.
What Are the Main Benefits and Risks of Derivatives?
Derivatives can be a very convenient way to achieve financial goals. For example, a company that
wants to hedge against its exposure to commodities can do so by buying or selling energy
derivatives such as crude oil futures. Similarly, a company could hedge its currency risk by
purchasing currency forward contracts.
Derivatives can also help investors leverage their positions, such as by buying equities through
stock options rather than shares. The main drawbacks of derivatives include counterparty risk, the
inherent risks of leverage, and the fact that complicated webs of derivative contracts can lead
to systemic risks.
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44
Options
The term option refers to a financial instrument that is based on the value of underlying securities
such as stocks. An options contract offers the buyer the opportunity to buy or sell—depending on
the type of contract they hold—the underlying asset. Unlike futures, the holder is not required to
buy or sell the asset if they decide against it. Each contract will have a specific expiration date by
which the holder must exercise their option. The stated price on an option is known as the strike
price. Options are typically bought and sold through online or retail brokers.
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KEY TAKEAWAYS
 Options are financial derivatives that give buyers the right, but not the obligation, to buy or
sell an underlying asset at an agreed-upon price and date.
 Call options and put options form the basis for a wide range of option strategies designed
for hedging, income, or speculation.
 Although there are many opportunities to profit with options, investors should carefully
weigh the risks.
Understanding Options
Options are versatile financial products. These contracts involve a buyer and seller, where the
buyer pays a premium for the rights granted by the contract. Call options allow the holder to buy
the asset at a stated price within a specific timeframe. Put options, on the other hand, allow the
holder to sell the asset at a stated price within a specific timeframe. Each call option has a bullish
buyer and a bearish seller while put options have a bearish buyer and a bullish seller.
Traders and investors buy and sell options for several reasons. Options speculation allows a trader
to hold a leveraged position in an asset at a lower cost than buying shares of the asset. Investors
use options to hedge or reduce the risk exposure of their portfolios.
In some cases, the option holder can generate income when they buy call options or become an
options writer. Options are also one of the most direct ways to invest in oil. For options traders, an
option's daily trading volume and open interest are the two key numbers to watch in order to make
the most well-informed investment decisions.
American options can be exercised any time before the expiration date of the option,
while European options can only be exercised on the expiration date or the exercise date.
Exercising means utilizing the right to buy or sell the underlying security.
Special Considerations
Options contracts usually represent 100 shares of the underlying security. The buyer pays a
premium fee for each contract. 1 For example, if an option has a premium of 35 cents per contract,
buying one option costs $35 ($0.35 x 100 = $35). The premium is partially based on
the strike price or the price for buying or selling the security until the expiration date.
Another factor in the premium price is the expiration date. Just like with that carton of milk in the
refrigerator, the expiration date indicates the day the option contract must be used. The underlying
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asset will determine the use-by date. For stocks, it is usually the third Friday of the contract's
month.
Options Spreads
Options spreads are strategies that use various combinations of buying and selling different options
for the desired risk-return profile. Spreads are constructed using vanilla options, and can take
advantage of various scenarios such as high- or low-volatility environments, up- or down-moves,
or anything in-between.

Spread strategies can be characterized by their payoff or visualizations of their profit-loss profile,
such as bull call spreads or iron condors.
Options Risk Metrics: The Greeks
The options market uses the term Greeks to describe the different dimensions of risk involved in
taking an options position, either in a particular option or a portfolio. These variables are called
Greeks because they are typically associated with Greek symbols. Each risk variable is a result of
an imperfect assumption or relationship of the option with another underlying variable. Traders use
different Greek values to assess options risk and manage option portfolios.3
Delta
Delta (Δ) represents the rate of change between the option's price and a $1 change in
the underlying asset's price. In other words, the price sensitivity of the option relative to the
underlying. Delta of a call option has a range between zero and one, while the delta of a put
option has a range between zero and negative one. 4 For example, assume an investor is long a call
option with a delta of 0.50. Therefore, if the underlying stock increases by $1, the option's price
would theoretically increase by 50 cents.
Delta also represents the hedge ratio for creating a delta-neutral position for options traders.4 So if
you purchase a standard American call option with a 0.40 delta, you need to sell 40 shares of stock
to be fully hedged. Net delta for a portfolio of options can also be used to obtain the portfolio's
hedge ratio.
A less common usage of an option's delta is the current probability that it will expire in-the-money.
For instance, a 0.40 delta call option today has an implied 40% probability of finishing in-the-
money.
Theta
Theta (Θ) represents the rate of change between the option price and time, or time sensitivity -
sometimes known as an option's time decay. Theta indicates the amount an option's price would
decrease as the time to expiration decreases, all else equal.5 For example, assume an investor is
long an option with a theta of -0.50. The option's price would decrease by 50 cents every day that
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passes, all else being equal. If three trading days pass, the option's value would theoretically
decrease by $1.50.
Theta increases when options are at-the-money, and decreases when options are in- and out-of-the
money. Options closer to expiration also have accelerating time decay. Long calls and long puts
usually have negative Theta. Short calls and short puts, on the other hand, have positive Theta. By
comparison, an instrument whose value is not eroded by time, such as a stock, has zero Theta.
Gamma
Gamma (Γ) represents the rate of change between an option's delta and the underlying asset's price.
This is called second-order (second-derivative) price sensitivity. Gamma indicates the amount the
delta would change given a $1 move in the underlying security. 6 Let's assume an investor is long
one call option on hypothetical stock XYZ. The call option has a delta of 0.50 and a gamma of
0.10. Therefore, if stock XYZ increases or decreases by $1, the call option's delta would increase
or decrease by 0.10.
Gamma is used to determine the stability of an option's delta. Higher gamma values indicate that
delta could change dramatically in response to even small movements in the underlying's price.
Gamma is higher for options that are at-the-money and lower for options that are in- and out-of-
the-money, and accelerates in magnitude as expiration approaches.
Gamma values are generally smaller the further away from the date of expiration. This means that
options with longer expirations are less sensitive to delta changes. As expiration approaches,
gamma values are typically larger, as price changes have more impact on gamma.
Options traders may opt to not only hedge delta but also gamma in order to be delta-gamma
neutral, meaning that as the underlying price moves, the delta will remain close to zero.
Vega
Vega (V) represents the rate of change between an option's value and the underlying
asset's implied volatility. This is the option's sensitivity to volatility. Vega indicates the amount an
option's price changes given a 1% change in implied volatility. 7 For example, an option with a
Vega of 0.10 indicates the option's value is expected to change by 10 cents if the implied volatility
changes by 1%.
Because increased volatility implies that the underlying instrument is more likely to experience
extreme values, a rise in volatility correspondingly increases the value of an option. Conversely, a
decrease in volatility negatively affects the value of the option. Vega is at its maximum for at-the-
money options that have longer times until expiration.
Those familiar with the Greek language will point out that there is no actual Greek letter named
vega. There are various theories about how this symbol, which resembles the Greek letter nu,
found its way into stock-trading lingo.
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Rho
Rho (p) represents the rate of change between an option's value and a 1% change in the interest
rate. This measures sensitivity to the interest rate. For example, assume a call option has a rho of
0.05 and a price of $1.25. If interest rates rise by 1%, the value of the call option would increase to
$1.30, all else being equal. The opposite is true for put options. Rho is greatest for at-the-money
options with long times until expiration.
Minor Greeks
Some other Greeks, which aren't discussed as often, are lambda, epsilon, vomma, vera,
speed, zomma, color, ultima.
These Greeks are second- or third-derivatives of the pricing model and affect things like the
change in delta with a change in volatility. They are increasingly used in options trading strategies
as computer software can quickly compute and account for these complex and sometimes esoteric
risk factors.
Advantages and Disadvantages of Options
Buying Call Options

As mentioned earlier, call options allow the holder to buy an underlying security at the stated strike
price by the expiration date called the expiry. The holder has no obligation to buy the asset if they
do not want to purchase the asset. The risk to the buyer is limited to the premium paid.
Fluctuations of the underlying stock have no impact.
Buyers are bullish on a stock and believe the share price will rise above the strike price before the
option expires. If the investor's bullish outlook is realized and the price increases above the strike
price, the investor can exercise the option, buy the stock at the strike price, and immediately sell
the stock at the current market price for a profit.
Their profit on this trade is the market share price less the strike share price plus the expense of the
option—the premium and any brokerage commission to place the orders. The result is multiplied
by the number of option contracts purchased, then multiplied by 100—assuming each contract
represents 100 shares.
If the underlying stock price does not move above the strike price by the expiration date, the option
expires worthlessly. The holder is not required to buy the shares but will lose the premium paid for
the call.
Selling Call Options

Selling call options is known as writing a contract. The writer receives the premium fee. In other
words, a buyer pays the premium to the writer (or seller) of an option. The maximum profit is the
premium received when selling the option. An investor who sells a call option is bearish and
49
believes the underlying stock's price will fall or remain relatively close to the option's strike price
during the life of the option.
If the prevailing market share price is at or below the strike price by expiry, the option expires
worthlessly for the call buyer. The option seller pockets the premium as their profit. The option is
not exercised because the buyer would not buy the stock at the strike price higher than or equal to
the prevailing market price.
However, if the market share price is more than the strike price at expiry, the seller of the option
must sell the shares to an option buyer at that lower strike price. In other words, the seller must
either sell shares from their portfolio holdings or buy the stock at the prevailing market price to
sell to the call option buyer. The contract writer incurs a loss. How large of a loss depends on the
cost basis of the shares they must use to cover the option order, plus any brokerage order expenses,
but less any premium they received.
As you can see, the risk to the call writers is far greater than the risk exposure of call buyers. The
call buyer only loses the premium. The writer faces infinite risk because the stock price could
continue to rise increasing losses significantly.
Buying Put Options

Put options are investments where the buyer believes the underlying stock's market price will fall
below the strike price on or before the expiration date of the option. Once again, the holder can sell
shares without the obligation to sell at the stated strike per share price by the stated date.
Since buyers of put options want the stock price to decrease, the put option is profitable when the
underlying stock's price is below the strike price. If the prevailing market price is less than the
strike price at expiry, the investor can exercise the put. They will sell shares at the option's higher
strike price. Should they wish to replace their holding of these shares they may buy them on the
open market.
Their profit on this trade is the strike price less the current market price, plus expenses—the
premium and any brokerage commission to place the orders. The result would be multiplied by the
number of option contracts purchased, then multiplied by 100—assuming each contract represents
100 shares.
The value of holding a put option will increase as the underlying stock price decreases.
Conversely, the value of the put option declines as the stock price increases. The risk of buying put
options is limited to the loss of the premium if the option expires worthlessly.
Selling Put Options

Selling put options is also known as writing a contract. A put option writer believes the underlying
stock's price will stay the same or increase over the life of the option, making them bullish on the
shares. Here, the option buyer has the right to make the seller, buy shares of the underlying asset at
the strike price on expiry.
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If the underlying stock's price closes above the strike price by the expiration date, the put option
expires worthlessly. The writer's maximum profit is the premium. The option isn't exercised
because the option buyer would not sell the stock at the lower strike share price when the market
price is more.
If the stock's market value falls below the option strike price, the writer is obligated to buy shares
of the underlying stock at the strike price. In other words, the put option will be exercised by the
option buyer who sells their shares at the strike price as it is higher than the stock's market value.
The risk for the put option writer happens when the market's price falls below the strike price. The
seller is forced to purchase shares at the strike price at expiration. The writer's loss can be
significant depending on how much the shares depreciate.
The writer (or seller) can either hold on to the shares and hope the stock price rises back above the
purchase price or sell the shares and take the loss. Any loss is offset by the premium received.
An investor may write put options at a strike price where they see the shares being a good value
and would be willing to buy at that price. When the price falls and the buyer exercises their option,
they get the stock at the price they want with the added benefit of receiving the option premium.
Pros
 A call option buyer has the right to buy assets at a lower price than the market when the stock's
price rises
 The put option buyer profits by selling stock at the strike price when the market price is below the
strike price
 Option sellers receive a premium fee from the buyer for writing an option
Cons
 The put option seller may have to buy the asset at the higher strike price than they would normally
pay if the market falls
 The call option writer faces infinite risk if the stock's price rises and are forced to buy shares at a
high price
 Option buyers must pay an upfront premium to the writers of the option
Example of an Option
Suppose that Microsoft (MFST) shares trade at $108 per share and you believe they will increase
in value. You decide to buy a call option to benefit from an increase in the stock's price. You
purchase one call option with a strike price of $115 for one month in the future for 37 cents per
51
contact. Your total cash outlay is $37 for the position plus fees and commissions (0.37 x 100 =
$37).
If the stock rises to $116, your option will be worth $1, since you could exercise the option to
acquire the stock for $115 per share and immediately resell it for $116 per share. The profit on the
option position would be 170.3% since you paid 37 cents and earned $1—that's much higher than
the 7.4% increase in the underlying stock price from $108 to $116 at the time of expiry.
In other words, the profit in dollar terms would be a net of 63 cents or $63 since one option
contract represents 100 shares [($1 - 0.37) x 100 = $63].
If the stock fell to $100, your option would expire worthlessly, and you would be out $37
premium. The upside is that you didn't buy 100 shares at $108, which would have resulted in an $8
per share, or $800, total loss. As you can see, options can help limit your downside risk.
How Do Options Work?
Options are a type of derivative product that allow investors to speculate on or hedge against the
volatility of an underlying stock. Options are divided into call options, which allow buyers to profit
if the price of the stock increases, and put options, in which the buyer profits if the price of the
stock declines. Investors can also go short an option by selling them to other investors. Shorting
(or selling) a call option would therefore mean profiting if the underlying stock declines while
selling a put option would mean profiting if the stock increases in value.
What Are the Main Advantages of Options?
Options can be very useful as a source of leverage and risk hedging. For example, a bullish
investor who wishes to invest $1,000 in a company could potentially earn a far greater return by
purchasing $1,000 worth of call options on that firm, as compared to buying $1,000 of that
company’s shares.
In this sense, the call options provide the investor with a way to leverage their position by
increasing their buying power.
On the other hand, if that same investor already has exposure to that same company and wants to
reduce that exposure, they could hedge their risk by selling put options against that company.
What Are the Main Disadvantages of Options?
The main disadvantage of options contracts is that they are complex and difficult to price. This is
why are considered an advanced investment vehicle, suitable only for experienced professional
investors. In recent years, they have become increasingly popular among retail investors. Because
52
of their capacity for outsized returns or losses, investors should make sure they fully understand
the potential implications before entering in to any options positions. Failing to do so can lead to
devastating losses.
also be able to master the basics of day trading, option spreads, and more. Find out more about
Udemy and get started today.
The Importance of Time Value in Options Trading
Most investors and traders new to options markets prefer to buy calls and puts because of

their limited risk and unlimited profit potential. Buying puts or calls is typically a way for
investors and traders to speculate with only a fraction of their capital. But these straight option
buyers miss many of the best features of stock and commodity options, such as the opportunity to
turn time-value decay (the reduction in value of an options contract as it reaches its expiration
date) into potential profits.
When establishing a position, option sellers collect time-value premiums paid by option buyers.

Rather than losing out because of time decay, the option seller can benefit from the passage of
time, and time-value decay becomes money in the bank even if the underlying asset is stationary.
Before explaining the importance of time value with respect to option pricing, this article takes a
detailed look at the phenomenon of time value and time-value decay. First, we'll look at some
basic options concepts that apply to the concept of time value.
KEY TAKEAWAYS
 Options contracts grant rights to options holders to buy or sell the underlying security at or
before some point in the future.
 The price of an options contract, known as its premium, is essentially linked to the
probability that the option will expire in-the-money (with positive value).
 As the time to expiration approaches, the chances of a large enough swing in the
underlying's price to bring the contract in-the-money diminishes, along with the premium.
 This is known as time-decay, whereby all else equal, an option's price will decline over
time.
Options and Strike Price
Depending on where the underlying asset is in relation to the option strike price, the option can be
in, out, or at the money. At-the-money (ATM) means the strike price of the option is equal to
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the current price of the underlying stock or commodity. When the price of a commodity or stock is
the same as the strike price (also known as the exercise price) it has zero intrinsic value, but it also
has the maximum level of time value compared to that of all the other option strike prices for the
same month. The table below provides a table of possible positions of the underlying asset in
relation to an option's strike price
The Relationship of the Underlying to the Strike Price
Put Call
The price of the underlying
In-the-money The price of the underlying is less than
is greater than the strike price of the
option the strike price of the option.
option.
The price of the underlying
Out-of-the- The price of the underlying is less than
is greater than the strike price of the
money option the strike price of the option.
option.
The price of the underlying is equal to
the strike price of the option.
At-the-money The price of the underlying is equal to
option the strike price of the option.
Note: Underlying refers to the asset (i.e. stock or commodity) upon which an option trades.
This table shows that when a put option is in-the-money (ITM), the underlying price is less than
the option strike price. For a call option, in the money means that the underlying price is greater
than the option strike price. For example, if we have an S&P 500 call with a strike price of 1,100
(an example we will use to illustrate time value below), and if the underlying stock index at
expiration closes at 1,150, the option will have expired 50 points in the money (1,150 - 1,100 =
50).
In the case of a put option at the same strike price of 1100 and the underlying asset at 1050, the
option at expiration also would be 50 points in the money (1,100 - 1,050 = 50). For out-of-the-
money (OTM) options, the reverse applies. That is, to be out of the money, the put's strike would
be less than the underlying price, and the call's strike would be greater than the underlying price.
Finally, both put and call options would be at the money when the underlying asset expires at the
strike price. While we are referring here to the position of the option at expiration, the same rules
apply at any time before the options expire.
Time Value of Money

With these basic relationships in mind, we take a closer look at time value and the rate of time-
value decay (represented by theta, from the Greek alphabet). If we ignore volatility, for now, the
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time-value component of an option, also known as extrinsic value, is a function of two variables:
(1) time remaining until expiration and (2) the closeness of the option strike price to the money.
All other things remaining the same (or no changes in the underlying asset and volatility levels),
the longer the time to expiration, the more value the option will have in the form of time value.
But this level is also affected by how close to the money the option is. For example, two call
options with the same calendar month expiration (both having the same time remaining in the
contract life) but different strike prices will have different levels of extrinsic value (time value).
This is because one will be closer to the money than the other.
The table below illustrates this concept and indicates when time value would be higher or lower
and whether there will be any intrinsic value (which arises when the option gets in the money) in
the price of the option. As the table indicates, deep in-the-money options and deep out-of-the-
money options have little time value. Intrinsic value increases the more in-the-money the option
becomes. And at-the-money options have the maximum level of time value but no intrinsic value.
Time value is at its highest level when an option is at the money because the potential for intrinsic
value to begin to rise is greatest at this point.
Intrinsic Value vs. Time Value
In-the-money Out-of-the money At-the-money

Time-value decreases as an Time-value is at a
Time-value decreases as an
Put/ option gets deeper in the maximum when an option is
option gets deeper out of the
Call money; intrinsic at the money; intrinsic value
money; intrinsic value is zero.
value increases. is zero.
Note: Intrinsic value arises when an option gets in the money.
Time Value Decay
In the figure below, we simulate time-value decay using three at-the-money S&P 500 call options,
all with the same strikes but different contract expiration dates. This should make the above
concepts more tangible. Through this presentation, we are making the assumption (for
simplification) that implied volatility levels remain unchanged and the underlying asset is
stationary. This helps us to isolate the behavior of time value. The importance of time value and
time-value decay should thus become much clearer.
Taking our series of S&P 500 call options, all with an at-the-money strike price of 1,100, we can
simulate how time value influences an option's price. Assume the date is Feb. 8. If we compare the
prices of each option at a certain moment in time, each with different expiration dates (February,
March, and April), the phenomenon of time-value decay becomes evident. We can witness how the
passage of time changes the value of the options.
The figure below illustrates the premium for these at-the-money S&P 500 call options with the
same strikes. With the underlying asset stationary, the February call option has five days remaining
until expiry, the March call option has 33 days remaining, and the April call option has 68 days
remaining.
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As the figure below shows, the highest premium is at the 68-day interval (remember prices are
from Feb. 8), declining from there as we move to the options that are closer to expiration (33 days
and five days). Again, we are simply taking different prices at one point in time for an at-the-
option strike (1100), and comparing them. The fewer days remaining translates into less time
value. As you can see, the option premium declines from $38.90 to $25.70 when we move from
the strike 68 days out to the strike that is only 33 days out.
The next level of the premium, a decline of 14.7 points to $11, reflects just five days remaining
before expiration for that particular option. During the last five days of that option, if it remains
out of the money (the S&P 500 stock index below 1,100 at expiration), the option value will fall to
zero, and this will take place in just five days. Each point is worth $250 on an S&P 500 option.
One important dynamic of time-value decay is that the rate is not constant. As expiration nears, the
rate of time-value decay (theta) increases (not shown here). This means that the amount of time
premium disappearing from the option's price per day is greater with each passing day.
The concept is looked at in another way in the figure below: The number of days required for a $1
(1 point) decline in premium on the option will decrease as expiry nears.
This shows that at 68 days remaining until expiration, a $1 decline in premium takes 1.75 days.
But at just 33 days remaining until expiration, the time required for a $1 loss in premium has fallen
to 1.28 days. In the last month of the life of an option, theta increases sharply, and the days
required for a one-point decline in premium falls rapidly.
At five days remaining until expiration, the option is losing one point in just less than half a day
(0.45 days). If we look again at the Time-Value Decay figure, at five days remaining until
expiration, this at-the-money S&P 500 call option has 11 points in premium. This means that the
premium will decline by approximately 2.2 points per day. Of course, the rate increases even more
in the final day of trading, which we do not show here.
How Is an Option's Time Decay Measured?
Options traders use the Greek value Theta (Θ) to measure time decay, and interpret it as the dollar
change in an option's premium given one additional day to expiration, all else equal. Therefore, an
option with a premium of $2.30 and a theta of $0.05 will be worth $2.25 the next day, assuming
nothing else changes.
Which Options Have the Greatest Time Value?
At-the-money options have the greatest time value (and are also most sensitive to time decay, as
measured by theta). Moreover, options approaching expiration see their time decay accelerate the
fastest relative to those with longer expirations remaining.
Why Is Time Value of Options Also Called Extrinsic Value?
An option's premium is composed of two parts: intrinsic and extrinsic value. Intrinsic value is the
amount of money the option contains if it were exercised immediately. For instance, a 30-strike
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call allows you to buy shares at $30, and if the stock is trading at $35, there has to be $5 of
intrinsic value in that call. Extrinsic value is anything above the intrinsic value. So, if you instead
owned the 40-strike call when the stock is trading at $35, it wouldn't be worth anything to exercise
at the moment. But, there would still be a premium, or the extrinsic value, which is based on the
chances that this option will pan out before expiration. This is based on the time value of the
option, since the more time there remains, the more chances the stock will rise above $40.
The Bottom Line
While there are other pricing dimensions (such as delta, gamma, and implied volatility), a look at
time-value decay is helpful to understand how options are priced.
also be able to master the basics of day trading, option spreads, and more.
57
Chapter II
About the Topic
Share market Before

Covid Share market
After Covid
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Share market before covid share market after covid
INTRODUCTION
The rapid spread of the unprecedented COVID‐19 pandemic has put the world in jeopardy and
changed the global outlook unexpectedly. Initially, the SARS‐CoV‐2 virus, which caused the
COVID‐19 outbreak triggered in Wuhan city, Hubei province of China in December 2019, and with
time it spread all over the globe. This pandemic is not only a global health emergency but also a
significant global economic downturn too. As many countries adopt strict quarantine policies to
fight the unseen pandemic, their economic activities are suddenly shut down. Transports being
limited and even restricted among countries have slowed down global economic activities. Most
importantly, consumers and firms have prevented their usual consumption patterns due to the
creation of panic among them and created market abnormality. Uncertainty and risk created due to
this pandemic, causing significant economic impact all over the globe affecting both advanced and
emerging economies such as the United States, Spain, Italy, Brazil, and India. In this context, the
financial market has responded with dramatic movement and adversely affected. Economic turmoil
associated with COVID‐19 has affected the financial market severely which includes both stock and
bond markets. Due to this pandemic, there is a large fall in the price of oil and a large increase in
the price of gold. Firzli (2020), refers to this pandemic as “the greater financial crisis.” In many
countries, businesses are highly indebted, weak companies are further destabilized, and corporate
debt stands at a very high level. The global financial market risk has increased substantially in
response to the pandemic (Zhang et al., 2020). Investors are suffering sufficient losses due to fear
and uncertainty. For example, due to the impact of this pandemic, the global stock market has
struck out about US$6 trillion in 1 week from 24 to 28 February (Ozili & Arun, 2020). The market
value of standard & poor (S&P) 500 indexes declined to 30% since the COVID‐19 outbreak.
According to Azimili (2020) increased uncertainty affects the required rate of return and thus the
current market value of stocks.
Although there is limited current literature related to the impact of COVID‐19 on the financial
market, the existing empirical studies have provided an exciting result. Baret et al. (2020), in their
research on financial markets and banks, have found that there is a fall in the share of oil, equity,
and bonds throughout the world as a result of the COVID‐19 pandemic. Social distancing measures
adversely affected the productivity of the companies and brought about a decrease in revenue,
higher operating cost, and also cash flow challenges to the companies. In Europe, the Financial
Times Stock Exchange 100 index witnessed a sharp 1‐day fall since 1987 (BBC News, 2020). Igwe
(2020) is of the view that the shock from this pandemic can increase the volatility that can
negatively affect the economic and financial system of every country. Most of the developed and
developing countries' financial markets are adversely affected by this unexpected pandemic. The
leading economy of the world, the US stock market hit the circuit breaker mechanism four times in
10 days in March 2020 (Zhang et al., 2020). The stock market of Europe and Asia has also jumped.
United Kingdom's leading index FTSE has fallen more than 10% on March 12, 2020 (Zhang et
al., 2020). Vishnoi and Mookerjee (2020) observed that the stock market in Japan had dropped
more than 20% in December 2019. The stock market of Spain, Hong Kong, and China also declined
to 25.1, 14.75, and 12.1% in their price from March 8, 2020 to March 18, 2020 (Shehzad et
al., 2020). In his study, also found a harmful impact of the COVID‐19 on stock returns of the S&P
59
500 and an inconsequential impact on the Nasdaq composite index. Georgieva (2020) pointed out
that the COVID‐19 pandemic brought the entire globe near to financial crises more hazardous than
Global Crises 2007–2008.
Gradually the worst effect of the pandemic spread to the emerging economy too. If we consider the
financial market of the emerging economy a gloomy picture caught our eyes as this economy is
worst‐hit by the collapse of oil prices. The outbreak of the COVID‐19 pandemic makes this picture
more critical. The top leading emerging economies such as Brazil, Russia, and Mexico gradually
moved toward hard mobility restrictions that will bring down the emerging economies to a
recession of 1% in 2020 (Herfero, ). In South Korea, the Coronavirus disease caused KOSPI to drop
below 1,600 in their history after 10 years (So, 2020). In China, higher uncertainty due to COVID‐
19 results in greater volatility of stock return (Leduc & Liu, 2020). The government of India
announced Janata Curfew on March 22, 2020 and lockdown policy to maintain social distancing
practice to slow down the outbreaks from March 24, 2020. As the government announced such a
lockdown policy, various economic activities have been stopped suddenly. The financial market of
India is witnessed sharp volatility as a result of the disruption of the global market (Raja
Ram, 2020). As a result of the fall out in the global financial market, the Indian stock market also
witnesses sharp volatility. It has also borne the brunt of the COVID‐19 pandemic.
There are two major stock indices in India—Bombay Stock Exchange (BSE), Sensex, and National
Stock Exchange (NSE), Nifty. If we look at the Bombay Stock Exchange there is a drop in the
Sensex index to 13.2% on March 23, 2020. It was the highest single they fall after the news of the
Harshad Mehta Scam, April 28, 1991 (Mandal, 2020). Similarly, Nifty has also declined to almost
29% during this period. Some economists have considered the impact of COVID‐19 on the Indian
stock market as a “black swan event,” that is, the occurrence of a highly unanticipated event with an
extremely bad impact. Due to the lockdown policy adopted by the government, the factories have
reduced the size of their labor force as well as production level which disrupted the supply chain.
Again, because of the uncertainty prevailing among mankind, people also reduce their consumption
habits leading to demand‐side shock. Studies have also found that the entire previous pandemic had
affected only the demand chain. But this COVID‐19 pandemic has affected both the demand chain
and supply chain.
Despite the several literatures on the impact of COVID‐19 on the stock market of the entire
economy, there is limited study on it especially in the case of an emerging economy. To shed light
on this aspect, this paper attempts to investigate the impact of COVID‐19 on the two important
stock market of India. Glosten–Jagannathan–Runkle (GJR) generalized autoregressive conditional
heteroscedasticity (GJR GARCH) model is used to make the study more significant in terms of
volatility in stock index prices due to the outbreak of the pandemic and lockdown policy adopted by
the Indian Government. Major findings of the study reveal the volatile nature of BSE Sensex and
NSE Nifty, the two prominent stock market of India.
This paper is organized as follows. Section 1 starts with an introduction, Section 2 represents a

literature review, Section 3 describes the sources of data and methodology, Section 4 shows results
and discussion, and Section 5 ends with the conclusion.
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Stock market performance reveals the impact of accelerating trends, growing gaps between the
winners and the rest, and a flow of value to megaplayer.
February 19, 2020, marked the stock market peak before the outbreak of the COVID-19 pandemic
triggered a freefall in share prices. In the year since, the world has changed, transforming our lives,
our economies, and the fortunes of our businesses—an unfolding journey that is reflected in the ups
and downs of share prices. The fundamental trends have accelerated, propelling some companies
forward at record speed while for others headwinds have turned into hurricanes.
By pooling investors’ beliefs about the future, capital markets are powerful indicators of what could
lie ahead. And this view puts the new realities we face into stark relief.
For equity investors, the drama of the past year has played out in four distinct acts, reflecting
marked shifts in expectations about the pandemic’s duration and its impact on consumers and
businesses (Exhibit 1). To illustrate this, we have grouped 5,000 of the world’s biggest companies
into their respective sectors and examined these sectors’ average shareholder returns over the course
of the year. We have placed one special set of companies, which we have dubbed the “Mega 25”
(more on these later), in a “sector” of their own because their exceptional market performance
would skew their industry results.
Coronavirus impact on stock markets since the start of the outbreak
61
62
The Stock Market’s Covid Pattern: Faster Recovery From Each Panic
Stocks have swung wildly since the Omicron variant of the coronavirus emerged, once again raising
concerns about the pandemic’s potential to damage the global economy.
It’s the latest round of market upheaval since the outbreak of Covid-19 roughly two years ago, with
the virus repeatedly tilting Wall Street’s assumptions about whether people would shop, travel or
even turn up for work. Each new phase of the pandemic has brought new requirements for testing,
border closings or warnings against public gatherings.
Much is still unknown about the Omicron variant, including how much protection vaccines provide.
But financial markets have taken the news in stride relative to earlier outbreaks.
That follows a pattern. Each bout of pandemic-driven volatility in the stock market since February
2020 has been shorter than the one before, and followed by a recovery to a new high. The S&P 500
through Monday had recovered nearly all its losses from its previous peak after Omicron’s
existence was announced by officials on Nov. 26.
The stock market has often been a barometer for the path of the pandemic, tumbling after
concerning milestones, and rising on advancements of vaccinations and new treatments. But the two
haven’t always moved in lock step, and Wall Street’s performance has at times disregarded the
human toll of the pandemic as it instead zeroed in on other factors that could drive corporate profits,
like low interest rates and government spending.
FEB.-MARCH 2020 When the outbreak reached a global scale, and millions began losing their
jobs during the recession, the S&P lost more than a third of its value from its peak.
SEPT.-OCT. 2020 Case counts exploded and the death toll kept rising, fueling concerns that
new restrictions might again pinch the global economy. Coupled with the uncertainty around the
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U.S. presidential election, the S&P neared a correction, a symbolic yet worrisome milestone on
Wall Street.
MARCH-APRIL 2021 Even as case counts reached their highest levels ever, the stock market
continued on a steady climb, bolstered by optimism behind the rollout of vaccines.
SEPT.-OCT. 2021 The persistence of the Delta variant threatened the recovery while high
inflation raised questions about whether Federal Reserve officials would start to trim stimulus
efforts.
NOV.-DEC. 2021 The emergence of the Omicron variant sent markets reeling again, just as
colder weather in many parts of the world helped push cases higher.
The market’s recoveries after pandemic-induced dips were underpinned by the Federal Reserve’s
measures to cut borrowing costs and keep capital pumping through the financial system. Progress
on vaccines and other treatments helped mute market falls.
They also helped shift the focus to the prospects for economic recovery and growth, even as case
counts kept climbing — at least until a new development, like the discovery of Omicron, served as
a reminder of the uncertainty the world still faces.
In recent weeks, Wall Street’s economists have begun trimming their forecasts for economic
growth, some of them citing the impact that the variant could have on the pace of reopening. Many
think the main risk is that the new variant will worsen persistent disarray in global supply chains.
If it prompts tighter lockdowns, it could force factories to shutter, exacerbating shortages of

everything from cars to building materials. Already, those kinds of disruptions have been a key
reason that prices have risen much faster than economists had expected, and the potential for the
Federal Reserve to have to act to tamp down price gains has added to the market’s recent
turbulence.
64
CHAPTER –III
65
RESEARCH METHODOLOGY
RESEARCH METHODOLOGY
RESEARCH PROBLEM
A Study on Share market before covid share market after covid. The study is
conducted at Kanpur with sample size of 70 people .
RESEARCH OBJECTIVE
1. To study the impact covid on share market.
LITERATURE REVIEW
66
The impact of COVID‐19 on the financial market as well as the stock market has been subject to
many empirical studies both in advanced and emerging economies. Existing literature found diverse
results in these regards. Ozili and Arun (2020) have conducted an empirical study on the effect of
social distancing policy that was adopted to prevent the spread of the Coronavirus, based on four
continents: North America, Africa, Asia, and Europe. The study found that 30 days of social
distancing policy or lockdown hurts the economy through its negative impact on stock prices.
Azimili (2020), also researched on understanding the impact of coronavirus on the degree and
structure of risk‐return dependence in the United States using quantile regression. The results
indicate that following the COVID‐19 outbreak the degree of dependence between returns and
market portfolio has raised in the higher quantiles that lowering the benefits of diversification. The
author also studied the GSIC and stock return relationship and found that the GSIC return
relationship revealed an asymmetric pattern, lower tails influenced negatively almost twice as
compared to the upper tails. Shehzad et al. (2020) conducted a study to analyze the nonlinear
behavior of the financial market of the United States, Italy, Japan, and China market return by
applying the asymmetric power GARCH model. The study confirmed that COVID‐19 harm the
stock returns of the S&P 500. However, it revealed an inconsequential impact on the Nasdaq
composite index. An empirical study conducted by Cepoi (2020) on the relationship between
COVID‐19 related news and stock market returns across the topmost affected countries. By
employing a panel quantile regression this study found that the stock market presents asymmetry
dependence on COVID‐19 related information. Osagie et al. (2020) by applying quadratic GARCH
and exponential GARCH models with dummy variables found that the COVID‐19 hurts the stock
returns in Nigeria and recommended that a stable political environment, incentive to indigenous
companies, diversification of economy, and flexible exchange rate regime be implemented to
improve the financial market. Baker (2020), in his study, found that there is a dramatic fall in oil
prices by 70–80%. It is severe than the financial crisis of 2008/2009. This is a serious issue for the
economy as the country is highly dependent on oil revenue. There is a huge gap between the
depreciated exchange rate, that is, 20% and the fall in oil prices, that is, 70–80%. According to
Herrero (2020), the third wave of the COVID‐19 pandemic has hit the emerging economy worst
resulting decrease in business activities. This unprecedented shock increases the risk‐averse nature
which increases the financial cost. Latin America is affected worst because of its much dependency
on external financing. Due to the restriction on transport, export has declined. Restriction in the
international movement has hampered the tourism sector leading to a fall in revenue. Hyun‐Jung
(2020) has made a study on the stock market of South Korea, another leading country of the
emerging economies. In his analysis, it was found that the economy has shown a roller ‐coaster ride.
The monthly export shows a downtrend in January, improved in February, then again dipped down
in March and June. The country's export volume has come down to 11.2% point in comparison to
the previous year. Topcu and Gulal (2020) have made regional classification of the impact of
COVID‐19 on the stock market of emerging economy. Their findings reveal that the impact of the
outbreak has been the highest in Asian emerging markets whereas European emerging markets have
experienced the lowest. The emerging market economies face a credit crunch, also referred to as
capital flows (Ahmed et al., 2020). Goldberg and Reed (2020) discussed the negative effect of
COVID‐19 on the trade of emerging economy. Consequently, the interest rate on emerging market
sovereign debt spiked. Frankel (2020) analyzed the economic effect of the pandemic on the
emerging economy. COVID‐19 has reduced the revenue of those economies by restricting export,
tourism receipts, and remittances of migrant workers. Raja Ram (2020) in his study has found that
COVID‐19 crashes the entire global share. Indian stock market also experienced sharp volatility due
to the collapse of the global financial market. Again fall in foreign portfolio investments also
67
reduces the return of the Indian stock market. By analyzing the history of all unexpected events the
author has considered COVID‐19 also a “black swan” event. He has further analyzed the history of
the crash and recovery of the Indian stock market and concluded that the economist cannot predict
the recovery of the economy until a stable public health system. Ravi (2020) has compared the pre‐
COVID‐19 and during COVID‐19 situation of the Indian stock market. His findings revealed that
before COVID‐19, that is, at the beginning of January, trade of NSE and BSE were at their highest
levels hitting peaks of 12,362 and 42,273, respectively showing favorable stock market conditions.
After the outbreak of the COVID‐19, the stock market came under fear as BSE Sensex and NSE
Nifty fell by 38%. It leads to a 27.31% loss of the total stock market from the beginning of this
year. The stock of some other sectors such as hospitality, tourism, and entertainment has been
dropped by more than 40% due to transport restrictions. Mandal (2020) has rigorously analyzed the
agony of the deadly pandemic on the Indian stock market. Findings reveal that BSE Sensex has
witnessed the biggest single‐day fall of 13.2% that has surpassed the infamous fall of April 28,
1992. Nifty also has a steep dive of 29%, overtaking the disaster of 1992. As people have
compressed their consumption only to necessary products only the FMCG Company has shown a
positive return whereas other companies face a sharp decline (Rakshit & Basistha, 2020).
There is various literature available on the impact of COVID‐19 on different sectors such as health,
agriculture, industry, trade, and commerce, but a limited specific study has been conducted on its
impact on the stock market of the emerging economy. The stock market plays an important role in
the economy. As India is one of the dominant parts of the emerging economy, this paper tries to
interpret the impact of COVID‐19 on the Indian stock market. GJR GARCH is an efficient model to
test the volatility of BSE and NSE, the two major stock market of India. Besides, there are very few
literature that compares the return of the stock market before and during the COVID‐19 situation.
Accordingly, our study has also made an attempt to compare the returns of both the stock market
considering those two mentioned time frames.
DATA AND METHODOLOGY
The study is based on secondary sources of data. Data on daily closing prices of indices Nifty and
Sensex have been collected from the official site of BSE and NSE (https://in.finance.yahoo.com/).
Data are collected from September 3, 2019 to July 10, 2020 including both the period before and
during COVID‐19. The time period from September 3, 2019 to January 29, 2020 is considered as
before the COVID‐19 phase and January 30, 2020 to October 6, 2020 as during COVID ‐19, that is,
the first 5 months are taken as before COVID‐19 and the next 5 months as during COVID ‐19 time
frame for the study (https://www.statista.com/). The first positive case of India was found on
January 30, 2020. Data on COVID‐19 positive cases are collected from the report of the Ministry of
Health and Family Welfare, Government of India (https://www.mohfw.gov.in/). Hence, for this
study, the period before this date is considered as the pre‐COVID‐19 era and the period after this
date is considered as during the COVID‐19 era.
In this paper, the closing price of BSE and NSE has been considered for analyzing the volatility of
the stock market. In the estimations, we take the natural logarithm of each price data to reduce the
observed skewness in the stock price data distribution.
68
The return of both BSE and NSE has been also calculated to investigate the scenario of change in
stock price return during pre‐COVID and the COVID period. To calculate the return, the following
formula has been used (Osagie et al., 2020):
Rt=lnPt−lnPt−1.
(1)
Here, R t, P t, and P t − 1 represent the day‐wise return, the closing price of the stock at time t, and the
previous day's closing price at time t − 1, respectively, while ln symbolizes the natural log.
To check whether a time series is stationary or nonstationary, augmented Dickey–Fuller (ADF) and
Phillips and Perron (PP) unit root test have been used. We use the PP unit root test also to estimate
the proper result because it does heteroscedasticity and autocorrelation consistency correction to
ADF test statistics. To test heteroscedasticity errors PP test is preferred the most. The ADF test is
based on the estimate of the following regression:
ΔYt=α0+γ1yt−1+∑i=1pβiΔyt−i+ℇt.
(2)
Here, ∆ represents first difference operator, p symbolized lag, α0 represents constant, γ1 and βi are

parameters, and ℇt denotes a stochastic error term. If γ = 0, then the series is said that it is a unit root
and nonstationary.
ADF test add lagged difference term of the regression to take care of possible serial correlation in
the error term. On the other hand, PP use nonparametric serial correlation method to take care of
serial correlation in the error term without adding lagged difference term (Gujrati, 2016). For this
reason, PP test can be considered more advantageous than ADF test.
The PP test is based on the estimate of the following regression:
ΔYt=α+ρyt−1+ℇt.
(3)
Here, α symbolizes constant, ρ represents parameter, and ℇt denotes residual.
To analyze the effect of COVID‐19 on the stock market volatility GJR GARCH model is used. The
GJR GARCH model developed by Glosten et al. (1993) and Zakoian (1994) is used to capture
asymmetric in terms of negative and positive shocks in the financial decision. One of the limitations
of the GARCH model is that this model imposes a symmetric volatility response to positive and
negative shocks (Sakthivel et al., 2014). This is due to the reason that conditional variance in
Equation (4) is the magnitude of the lagged residuals and therefore does not account for their sign.
69
This asymmetric response of conditional volatility to information can be captured by including,
along with the standard GARCH variables, squared values of ε t − 1 when ε t − 1 negative (Glosten et
al., 1993). The GJR GARCH model is estimated as follows:
ht=∝0+∑j=1q∝1ℇ2t−1+∑i=1pβ1ht−1+∑k=1rγiIt−1ℇ2t−1,
(4)
where It − 1 = 1 if ℇt − 1 < 0; =0 otherwise.
γ is known as asymmetry or leverage term. If γ > 0 represents asymmetry while γ = 0 represents
symmetry. The condition for nonnegativity would now be α 0 ≥ 0, α 1 ≥ 0, β 1 ≥ 0, and α 1 + γ 1 ≥ 0. In
the model, the good news (ε t − 1 > 0) and bad news (ε t − 1 < 0) have contrasting impacts on the
conditional variance, good news has an effect of β 1, while bad news has an effect of α 1 + γ 1. If γ 1
> 0, negative shocks tend to have more volatility and is known as the leverage effect of the ith
order. If γ 1 = 0, the news effect is symmetric.
A dummy variable is introduced in the conditional mean and variance equation to investigate the
impact of the COVID‐19 outbreak on the volatility of NSE and BSE. The model modified as per the
GJR GARCH approach is specified as:
Pt=α0+β1Pt−1+γ1D1+ℇ1,
(5)
ht=∝0+∑j=1q∝1ℇ2t−1+∑i=1pβ1ht−1+∑k=1rγiIt−1ℇ2t−1+λ1D1.
(6)
The dummy variable D 1 assumes the value 0 for the pre‐COVID‐19 era and 1 for the during
COVID‐19 era. A negative and statistically significant coefficient for the dummy variable implies
that the COVID‐19 pandemic caused a reduction in the volatility of the Indian stock market. A
positive and statistically significant coefficient for the dummy variable implies that the COVID ‐19
crisis has caused an increase in the volatility of the Indian stock market.
DISCUSSION AND ANALYSIS
This paper uses the daily price and return of two stock indices of India, BSE, and NSE. First and
foremost, we calculate the descriptive statistics of the price and return of the BSE and NSE series.
In Table Table1,1, the mean return which is a major indicator of profit shows a negative value,
indicating a loss in stock. Negatively skewed return with higher kurtosis value indicates chances of
high losses in both the stock markets. Likewise, the return of pre‐COVID‐19 and during COVID‐19
is presented in Table Table2.2. As India reported the first case of COVID‐19 on January 30, 2020,
before this period is considered to be as the pre‐COVID‐19 era and the period after January 30,
2020 is considered as the during COVID‐19 period for the study. In Table Table2,2, it is observed
that the mean return of both the indices is positive in the pre‐COVID‐19 era but daily mean returns
are negative during the COVID‐19 era, implying an adverse impact on stock returns. The SD of the
70
indices has increased during the COVID‐19 era which implies that the volatility of the indices has
increased during the COVID‐19 time frame.
TABLE 1
Descriptive statistics of the entire sample
BSE Sensex NSE Nifty
Price Return Price Return
Observation 209 208 209 208
Mean 466.9311 −0.000113 10,879.09 −5.78E‐06
Median 496.5000 −0.000139 11,303.30 0.0004
Maximum 573.6500 0.039111 12,362.30 0.0364
Minimum 283.3000 −0.043645 7,610.250 −0.0603
SD 77.23121 0.011278 1,269.041 0.00929
Skewness −0.708423 −0.95679 −0.63336 −1.53543
Kurtosis 2.349923 5.285872 2.083647 14.15163
JB 21.16169 45.60252 21.28587 1,159.505
TABLE 2
Descriptive statistics of stock return of pre‐COVID‐19 and during COVID‐19 period
BSE Sensex NSE Nifty

Pre‐COVID‐19 era During COVID‐19 era Pre‐COVID‐19 era During COVID‐19 era
Mean 8.84E‐05 −0.000239 0.000471 −0.000448
Median −0.000306 0.000217 0.000455 2.95E‐05
Maximum 0.020004 0.039111 0.022507 0.036482
Minimum −0.015436 −0.043645 −0.008378 −0.060383
SD 0.006570 0.014427 0.003938 0.012348
Skewness 0.307638 −0.097568 1.844912 −1.229302
Kurtosis 3.643217 3.72661 12.00168 8.530320
JB 3.268177 2.491638 394.3503 168.8313
71
Figures 1 and 2 represent the time plot of BSE and NSE stock prices respectively over the examined
period. Before February 2020 (pre‐COVID‐19 period) the prices of both the indices are positive and
show almost a smooth line in the figure. But after reporting the first case in India as well as the
declaration of the first lockdown, it moves down to the bottom of the steep at the end of March
2020. From April 2020, it again shows a positive trend. This is because relaxation has been adopted
in the case of a lockdown policy from April by the government.
FIGURE 1
Time plot of Bombay Stock Exchange (BSE) stock price
72
FIGURE 2
Time plot of National Stock Exchange (NSE) stock price
Figures 3 and 4 present the log return of BSE and NSE from the period September 3, 2019 to July
10, 2020 and evidence of volatility is shown with the help of these two diagrams. The result depicts
that BSE is more volatile than NSE. As we all know that BSE is the largest stock exchange in India,
a huge number of investors from different parts of the world make investment in this market. So in
terms of volatility BSE is more sensitive in comparison to NSE.
73
FIGURE 3
Log return of Bombay Stock Exchange (BSE)
74
FIGURE 4
Log return of National Stock Exchange (NSE)
To check the stationarity of two indices, BSE and NSE, we perform ADF and PP stationarity tests.
The result presented in Table Table 3 revealed that most of the log indices are nonstationary in level
form, hence the null hypothesis is accepted. Although, log indices have been found stationary in the
first difference in both ADF and PP tests. Consequently, the indices are found stationary in first
deference. Therefore, the unit root tests justify the existence of stationarity at the first difference.
75
TABLE 3
Result of unit root statistics
Name of ADF in first

index ADF in level difference PP in level PP in first difference
BSE Sensex −1.269416 −12.24932 (0.0000)
*
−1.456996 −12.64598* (0.0000)
(0.6438) (0.5535)
NSE Nifty −1.619650 −16.60469* (0.0000) −1.220566 −16.43414* (0.0000)
(0.4707) (0.6657)
Table 4 presents the estimated results on the GJR GARCH (1,1) model with BSE Sensex and from
this table, it has been observed that the coefficient of asymmetric (λ 1) and GARCH (β 1) are
significant. The coefficient of ARCH (α 1) is found negative but significant; this particular finding
indicates the existence of the ARCH effect in the BSE Sensex series. Further, the coefficient of
GARCH was appeared positive and significant, which implies that volatility clustering was present
in the BSE index. The positive and significant asymmetric effect also indicate the presence of
asymmetric effect and this implies that negative shocks news tend to increase volatility more than
positive shocks. To capture volatility, a dummy variable (D 1) has been added in both mean and
variance equation; D 1 takes the value of 0 and 1 for the pre and during the COVID‐19 era,
respectively. The result exhibits that the coefficient of the dummy variable for BSE Sensex in the
mean equation is negative but not significant. Conversely, in the variance equation, it is positive and
significant. This inferred that the spot market volatility in the BSE stock market has increased
during the COVID‐19 period.
TABLE 4
Result of GJR GARCH model with BSE Sensex
Mean equation parameters Coefficients Z‐statistics p‐value
β 0 −0.001621 −1.677327 0.0935
γ 1 −0.000705 −0.235801 0.8136
Variance equation
α 0 1.23E‐05 10.86474* 0.0000
β 1 1.024974 329.0440* 0.0000
λ 1 0.040947 1.893853 **
0.0542
α 1 −0.089238 10.86474 *
0.0000
δ 2 4.16E‐05 4.248481* 0.0000
76
Table 5 presents the result of GJR GARCH with NSE Nifty. The table reveals that the coefficient of
asymmetric (λ 1) and GARCH (β 1) are significant and positive, which entailed that volatility is
present in NSE Nifty. The positive and significant value of the asymmetric term (λ 1) represent that
negative shocks have a larger effect than the positive shock to the volatility of the NSE stock
exchange. However, the coefficient of ARCH is positive but insignificant; indicating that past news
does not impact current volatility. On the other hand, it can be noticed that the coefficient of
dummy variable (D 1) in the mean equation is negative but in variance, it is positive and
insignificant. In both equations the coefficient of the dummy is insignificant, implying no
significant impact of the COVID‐19 period on the volatility of NSE stock price.
TABLE 5
Result of GJR GARCH model with NSE Nifty
Mean equation parameters Coefficients Z‐statistics p‐value
β 0 0.000659 0.983215 0.3255
γ 1 −0.000945 −0.526764 0.5984
Variance equation
α 0 2.82E‐06 1.687363 0.0915
β 1 0.822061 30.55926 *
0.0000
λ 1 0.357850 4.805764* 0.0000
α 1 0.000418 1.687363 0.9887
δ 2 7.83E‐06 1.070103 0.2846
Diagnostic measure
Ljung‐Box Q and ARCH LM test is used to check the serial correlation and heteroscedasticity in the
square of standardized residuals of the model. The result indicates that there is an absence of serial
correlation and heteroscedasticity which is shown in Table Table6.. All the models performed
correctly in this study.
TABLE 6
Diagnostic parameters
77
Serial correlation Heteroscedasticity
Variable Q statistics p‐value F statistics p‐value
BSE Sensex 30.760 0.716 0.278137 0.8919
NSE Nifty 23.924 0.938 0.161734 0.9575
78
CHAPTER – IV
DATA ANALYSIS
79

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MINI PROJECT ON

SHARE MARKET BEFORE COVID

MASTER OF BUSINESS ADMINISTRATION (MBA)

SUBMITTED TO: SUBMITTED BY:

When I embarked this project, it appeared to me as onerous task. Slowly as I progressed I

I wish to express my gratitude to Director, Dr. Rashmi Dewedi and H.O.D.

I am thankful to my classmates, well-wishers who with their magnanimous and generous

Roll No. 2003510700024

I, Vineet Tiwari student of M.B.A at Krishna Institute of Technology Kanpur of

Whatever information furnished in this project report is true to the best of my

Roll No. 2003510700024

 To study the influence of stock and investment strategies.

 To study the influence of demographic profile on investors awareness in stock markets.

National Stock Exchange (NSE)

Purpose, Vision & Values

NSE launches new brand identity for NIFTY Indices

Launched Commodity Derivatives segment, goBidMobile app for governmentsecurities and

Launched currency derivatives on Non-FCYINR pairs

Launched NIFTY 50 index futures trading onTAIFEX

Entered into a memorandum of understanding to enhance co-operation with the London

Launched NMF-II platform for mutual funds

2012 - Launched the New Debt Segment (NDS)

2009 - Launched NOW platform for mobile devices

2008 - Launched Mutual Fund Service System (MFSS)

Became the first exchange in India to offer trading inCurrency Futures

2005 - Incorporated NSE InfoTech Ltd., a wholly-owned subsidiary for IT research and

2004 - Launched NIFTY Bank index derivatives

2001 - Launched ETF listings

Incorporated NSE Data & Analytics Limited (formerly known as DotEx International

Established NSEIT, a wholly-owned subsidiaryand a global technologyfirm, that provides

1995 - Created and administered a settlement fund

1993 - Launched the equity and wholesale debt market segments

World’s Largest Derivative Exchange in terms of contracts traded

Innovative Practices Award 2018 on Sustainable Development Goals

UN Global Compact Network India

FICCI CSR Award for Exemplary Innovation

Capital Market: Vision 2020 - Best Stock Exchange of India

7th Annual Greentech HR Award 2017

Golden Peacock Award for Corporate Social Responsibilty

ET NOW – CSR Leadership Award

India Achievers Awards, 2018 - NSE SME Driver of Entre-preneurship

Datacenter Summit and Awards 2017 for Innovation

Architecting a Digital Transformation Journey

Ranked among India’s Top 50 companies to work for

CII - Exim Bank Prize for Business Excellence

Global Architecture Excellence Awards 2016 - New Service Offering Initiative

Golden Peacock Innovative Product / Service Award

CII-Exim Bank Prize for Business Excellence

Capital Finance International - Best Stock Exchange Award, India

The NIFTY 50 is a benchmark Indian stock market index that represents the weighted average of

Company Name Symbol Sector

Adani Ports ADANIPORTS Infrastructure

Apollo Hospitals APOLLOHOSP Healthcare

Asian Paints ASIANPAINT Consumer Goods

Axis Bank AXISBANK Banking

Bajaj Auto BAJAJ-AUTO Automobile

Bajaj Finance BAJFINANCE Financial Services

Bajaj Finserv BAJAJFINSV Financial Services

Bharat Petroleum BPCL Energy - Oil & Gas

Bharti Airtel BHARTIARTL Telecommunication

Britannia Industries BRITANNIA Consumer Goods

Cipla CIPLA Pharmaceuticals

Coal India COALINDIA Metals