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STOCK EXCHANGE

A Stock Exchange Securities Exchange or bourse is a facility where


stockbrokers and traders can buy and sell securities, such as shares
of stock in bonds and other financial instruments. Stock exchanges
may also provide 4 facilities for the issue and redemption of such
securities and instruments and capital events including the payment
of income and dividends.
To be able to trade a security order certain Stock Exchange, the
securities must be listed their trade on a Stock Exchange is restricted
to brokers who exchange.

MAJOR STOCK EXCHANGES IN INDIA


There are two major types of Stock Exchanges in India, namely the-
Bombay Stock Exchange (BSE)- This particular Stock Exchange was
established in 1875 in Mumbai at Dalal Street. It is renowned as the
oldest stock exchange not just in Asia and is the ‘World’s 10th largest
Stock Exchange’.
As of April, the estimated market capitalization of the Bombay stock
exchange stands as $4.9 Trillion and has around 6000 companies
publicly listed under it.
National Stock Exchange (NSE)- The NSE was established in 1992 in
Mumbai and is accredited as the pioneer in the demutualized
electronic stock exchange market in India. This stock exchange
market was established to eliminate the monopolistic impact of the
Bombay Stock Exchange in the Indian stock market.
HISTORY OF STOCK EXCHANGE IN INDIA
Corporate shares started being traded in the 1830s in Bombay (now
Mumbai) with the stock of Bank and Cotton presses. The simple and
informal beginnings of stock exchanges in India take one back to the
1850s when 22 stockbrokers began trading opposite the Town Hall of
Bombay under a banyan tree.
The venue then shifted to banyan trees at the Meadows Street
junction, which is now known as Mahatma Gandhi Road, a decade
later. The shift continued taking place as the number of brokers
increased, finally settling in 1874 at what is known as Dalal Street.
This as yet informal group known as the Native Share and
Stockbrokers Association organized itself as the Bombay Stock
Exchange (BSE) in 1875. The BSE is the oldest stock exchange in Asia
and was the first to be granted permanent recognition under the
Securities Contract Regulation Act, 1956.
In the post-independence era, the BSE dominated the volume of
trading. However, the low level of transparency and undependable
clearing and settlement systems, apart from other macro factors,
increased the need for a financial market regulator, and the SEBI was
born in 1988 as a non-statutory body. It was made a statutory body
in 1992.
After the Harshad Mehta scam in 1992, there was a pressing need for
another stock exchange large enough to compete with the BSE and
bring transparency to the stock market. This gave birth to the
National Stock Exchange (NSE). It was incorporated in 1992, become
recognized as a stock exchange in 1993, and trading began on it in
1994. It was the first stock exchange on which trading took place
electronically.
IMPACT OF COVID-19 ON THE INDIAN STOCK MARKET
Ever since COVID 19 strike, markets loom under fear as uncertainty
prevails. lt has sent markets around the world crashing to levels not
witnessed since the Global Financial Crisis of 2008. Following the
strong correlation with the trends and indices of the global market
BSE Sensex and Nifty 50 fell by 38 percent. The total market cap lost
a staggering 27.31% from the start of the year. The stock market has
reflected the sentiments this pandemic unleashed upon investors,
foreign and domestic alike. Companies have scaled back; layoffs have
multiplied and employee compensations have been affected
resulting in negligible growth in the last couple of months. Certain
sectors such as hospitality, tourism, and entertainment have been
impacted adversely and stocks of such companies have plummeted
by more than 40%.
While the world has witnessed many financial crises in the past, the
last one being the global recession of 2008, the current coronavirus
crisis is different from the past fallouts.
Companies with innovative products, increasing distribution reach,
technology-driven processes and healthy balance sheets would
revive the growth momentum post lockdown. Lower oil prices and
high capital expenditure by the government in turn create capital
that will provide a platform to flourish when we overcome COVID 19
pandemic.
A Comparison of Pre and Post COVID View of Indian Stock markets
LIST OF 25 COMPANIES LISTED ON THE INDIAN STOCK EXCHANGE
PORTFOLIO
A stock portfolio is a collection of stocks in which you invest in the
hope of profiting. You can become a more resilient investor by
assembling a diverse portfolio that spans multiple sectors.
We have taken a total of Rs.50000 in this portfolio, which will be
allocated equally to buy shares in five different companies.
The five companies are-
1. Reliance Industries limited
2. Tata Consultancy Services
3. HDFC Bank
4. Hindustan Unilever
5. State bank of India
This portfolio is being maintained for 20 days, from May 20 to June
16, 2022. During the holding period, all share prices will be observed
for price fluctuations. The profit and loss will be determined on June
20th.
RELAINCE INDUSTRIES LTD.
Reliance Industries Limited is an Indian multinational conglomerate
company based out of Mumbai, India. It has diverse businesses
including energy, petrochemicals, natural gas, retail,
telecommunications, mass media, and textiles.
The number of shares of RIL is approx. 644.51 crore. The promoter
group, the Ambani family, holds approx. 49.38% of the total shares
whereas the remaining 50.62% shares are held by public
shareholders, including FII and corporate bodies. Life Insurance
Corporation of India is the largest non-promoter investor in the
company, with a 7.98% shareholding.
SHARE PRICES OF RELIANCE OVER 20 DAYS

Date Open High Low Close


20-05-2022 2,515 2,643 2,503 2,622
23-05-2022 2,630.00 2,653.75 2,592.95 2,605.95
24-05-2022 2,624.00 2,637.80 2,598.00 2,616.00
25-05-2022 2,632.35 2,655.80 2,601.85 2,611.15
26-05-2022 2,618.00 2,633.90 2,547.70 2,587.45
27-05-2022 2,596.95 2,605.55 2,539.35 2,575.20
30-05-2022 2,619.80 2,673.00 2,594.85 2,663.75
31-05-2022 2,646.00 2,678.75 2,615.85 2,633.90
01-06-2022 2,632.35 2,654.95 2,616.10 2,632.20
02-06-2022 2,645.00 2,732.00 2,635.65 2,724.50
03-06-2022 2,746.95 2,816.35 2,740.00 2,779.50
06-06-2022 2,780.60 2,813.75 2,751.55 2,766.90
07-06-2022 2,764.00 2,791.00 2,754.00 2,772.50
08-06-2022 2,775.20 2,782.10 2,715.60 2,724.30
09-06-2022 2,709.00 2,802.00 2,709.00 2,798.60
10-06-2022 2,774.35 2,790.05 2,701.60 2,714.00
13-06-2022 2,653.80 2,673.30 2,616.40 2,662.80
14-06-2022 2,653.00 2,670.15 2,613.85 2,627.35
15-06-2022 2,610.00 2,637.40 2,585.10 2,596.30
16-06-2022 2,622.00 2,658.60 2,554.95 2,559.20
Graphical Representation of Share Prices
Share Prices of Reliance over 20 days
2,850

2,800

2,750

2,700

2,650

2,600
Share Price

Close
2,550 Open
2,500

2,450

2,400

2,350
22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22
/ 20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20
20 23 24 25 26 27 30 31 6/1 6/2 6/3 6/6 6/7 6/8 6/9 /10 /13 /14 /15 /16
5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 6 6 6 6 6

Date
TATA CONSULTANCY SERVICES
Tata Consultancy Services is an Indian multinational information
technology services and consulting company with its headquarters in
Mumbai. It is a part of the Tata Group and operates in 149 locations
across 46 countries.
TCS is the second-largest Indian company by market capitalization
and is among the most valuable IT service brands worldwide.
Share Prices of TCS over 20 days
Date Open High Low Close
20-05-2022 3,309.00 3,314.00 3,271.15 3,293.90
23-05-2022 3,315.00 3,338.00 3,267.05 3,320.95
24-05-2022 3,311.00 3,320.95 3,276.50 3,288.05
25-05-2022 3,286.00 3,286.55 3,155.00 3,166.60
26-05-2022 3,190.00 3,242.00 3,181.00 3,228.60
27-05-2022 3,249.00 3,278.85 3,230.00 3,262.20
30-05-2022 3,273.85 3,385.80 3,273.85 3,375.55
31-05-2022 3,355.00 3,382.95 3,324.10 3,364.80
01-06-2022 3,385.00 3,388.00 3,342.50 3,356.50
02-06-2022 3,357.00 3,432.25 3,350.05 3,422.95
03-06-2022 3,454.70 3,477.50 3,431.55 3,438.80
06-06-2022 3,421.00 3,453.10 3,378.00 3,430.25
07-06-2022 3,420.00 3,420.00 3,356.20 3,362.00
08-06-2022 3,372.00 3,413.45 3,347.00 3,403.05
09-06-2022 3,373.00 3,436.40 3,354.15 3,426.55
10-06-2022 3,388.00 3,390.15 3,352.10 3,365.35
13-06-2022 3,291.00 3,293.00 3,194.00 3,220.15
14-06-2022 3,198.00 3,238.90 3,178.90 3,211.25
15-06-2022 3,214.95 3,234.00 3,201.10 3,206.80
16-06-2022 3,237.40 3,241.65 3,134.00 3,142.35
Graphical Representation of Share Prices

Share Prices of TCS over 20 days


3,500.00

3,400.00

3,300.00

3,200.00
Share Prices

Open
Close
3,100.00

3,000.00

2,900.00
22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22
/ 20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20
20 23 24 25 26 27 30 31 6/1 6/2 6/3 6/6 6/7 6/8 6/9 /10 /13 /14 /15 /16
5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 6 6 6 6 6

Date
HDFC BANK
HDFC Bank Limited is an Indian banking and financial services
company headquartered in Mumbai. It is India's largest private
sector bank by assets and the world's 10th largest bank by market
capitalization as of April 2021 It is the third-largest company by
market capitalization of $122.50 billion on the Indian stock
exchanges.
The equity shares of HDFC Bank are listed on the Bombay Stock
Exchange and the National Stock Exchange of India. Its American
depositary receipts are listed on the NYSE and issued through JP
Morgan Chase Bank.
Share Prices of HDFC Bank over 20 days

Date Open High Low Close


20-05-2022 1,300.00 1,324.20 1,292.20 1,320.70
23-05-2022 1,313.00 1,329.55 1,299.00 1,302.90
24-05-2022 1,297.70 1,325.30 1,296.20 1,318.95
25-05-2022 1,327.50 1,336.00 1,323.05 1,328.40
26-05-2022 1,335.00 1,370.55 1,335.00 1,367.70
27-05-2022 1,374.00 1,394.50 1,371.45 1,391.60
30-05-2022 1,408.20 1,420.55 1,399.00 1,400.75
31-05-2022 1,397.00 1,404.80 1,380.00 1,387.45
01-06-2022 1,383.85 1,400.80 1,379.80 1,396.30
02-06-2022 1,388.00 1,388.00 1,378.90 1,385.10
03-06-2022 1,395.00 1,401.40 1,376.00 1,380.25
06-06-2022 1,374.05 1,387.40 1,361.65 1,377.60
07-06-2022 1,364.40 1,373.75 1,355.30 1,362.85
08-06-2022 1,367.50 1,381.40 1,357.20 1,367.30
09-06-2022 1,359.05 1,381.35 1,357.40 1,377.35
10-06-2022 1,365.00 1,365.00 1,343.30 1,350.65
13-06-2022 1,320.00 1,330.55 1,308.90 1,327.30
14-06-2022 1,310.00 1,326.15 1,306.20 1,310.85
15-06-2022 1,301.00 1,315.85 1,298.50 1,307.85
16-06-2022 1,314.00 1,320.60 1,278.00 1,281.15
Graphical Representation of Share Prices

Share Prices of HDFC Bank over 20 days


1,450.00

1,400.00

1,350.00
Share Prices

Open
Close
1,300.00

1,250.00

1,200.00
22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22
/ 20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20
20 23 24 25 26 27 30 31 6/1 6/2 6/3 6/6 6/7 6/8 6/9 /10 /13 /14 /15 /16
5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 6 6 6 6 6

Date
HINDUSTAN UNILEVER
Hindustan Unilever Limited is a consumer goods company
headquartered in Mumbai, India. It is a subsidiary of Unilever, a
British company. Its products include foods, beverages, cleaning
agents, personal care products, water purifiers, and other fast-
moving consumer goods.
The Company's shares are listed and traded at the Bombay Stock
Exchange Limited (BSE) and National Stock Exchange of India Limited
(NSE).
Share Prices of Hindustan Unilever over 20 days

Date Open High Low Close


20-05-2022 2,283.00 2,347.10 2,283.00 2,325.50
23-05-2022 2,320.00 2,387.65 2,314.25 2,380.05
24-05-2022 2,380.05 2,380.05 2,301.30 2,309.05
25-05-2022 2,324.00 2,329.95 2,286.35 2,298.45
26-05-2022 2,298.00 2,298.00 2,258.60 2,281.35
27-05-2022 2,298.00 2,334.75 2,281.35 2,330.30
30-05-2022 2,340.00 2,364.95 2,332.20 2,348.65
31-05-2022 2,351.00 2,367.30 2,304.55 2,349.65
01-06-2022 2,375.00 2,413.00 2,303.15 2,308.70
02-06-2022 2,299.00 2,301.90 2,257.70 2,284.95
03-06-2022 2,284.00 2,324.60 2,266.00 2,292.15
06-06-2022 2,279.00 2,301.95 2,248.00 2,279.45
07-06-2022 2,265.00 2,265.00 2,208.00 2,211.50
08-06-2022 2,221.00 2,221.00 2,187.00 2,197.25
09-06-2022 2,177.50 2,207.70 2,171.20 2,196.85
10-06-2022 2,175.00 2,208.65 2,163.10 2,199.90
13-06-2022 2,161.00 2,216.75 2,156.05 2,195.90
14-06-2022 2,195.90 2,213.35 2,160.15 2,172.25
15-06-2022 2,165.00 2,165.00 2,131.25 2,150.40
16-06-2022 2,148.00 2,164.00 2,135.15 2,146.40
Graphical Representation of Share Prices

Share price of Hindustan Unilever over 20 days


2,400.00

2,350.00

2,300.00

2,250.00

2,200.00
Stock price

Open
2,150.00 Close

2,100.00

2,050.00

2,000.00
22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22
/ 20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20
20 23 24 25 26 27 30 31 6/1 6/2 6/3 6/6 6/7 6/8 6/9 /10 /13 /14 /15 /16
5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 6 6 6 6 6

Date
STATE BANK OF INDIA
State Bank of India is an Indian multinational public sector bank and
financial services statutory body headquartered in Mumbai,
Maharashtra.
As of 31 March 2017, the Government of India held around 61.23%
equity shares in SBI. The Life Insurance Corporation of India, itself
state-owned, is the largest non-promoter shareholder in the
company with 8.82% shareholding. The equity shares of SBI are listed
on the Bombay Stock Exchange, where it is a constituent of the BSE
SENSEX index, and on the National Stock Exchange of India, which is
a constituent of the CNX Nifty. Its Global Depository Receipts (GDRs)
are listed on the London Stock Exchange.
Share Prices SBI of over 20 days

Date Open High Low Close


20-05-2022 455 464 454 462.5
23-05-2022 464.7 471.3 459.45 460.95
24-05-2022 462 466.7 460.2 462.35
25-05-2022 461.4 464.55 452.15 454.2
26-05-2022 457.4 470 452.55 469
27-05-2022 471.95 474.95 467.15 469
30-05-2022 473.8 476.7 471.2 474.45
31-05-2022 473.95 476.45 465.05 467.8
01-06-2022 467.8 471.8 464.75 468.2
02-06-2022 468.1 472.3 466.35 469.75
03-06-2022 473.6 475.45 463.5 464.3
06-06-2022 464.3 465.6 456.5 463.55
07-06-2022 462 465.95 461.05 463.35
08-06-2022 467.4 475.5 463.25 471.05
09-06-2022 469.7 471.15 462.65 466.85
10-06-2022 465 465 458.8 461.8
13-06-2022 456.5 456.5 442.35 445.9
14-06-2022 445 449.3 443.3 447.8
15-06-2022 449.5 455.3 448.55 451.5
16-06-2022 454.5 457.85 440.2 441.35
Graphical Representation of Share Prices

Share Prices of SBI over 20 days


480

470

460
Share Prices

450
Open
Close
440

430

420
22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22
/ 20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20
20 23 24 25 26 27 30 31 6/1 6/2 6/3 6/6 6/7 6/8 6/9 /10 /13 /14 /15 /16
5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 6 6 6 6 6
Date
Causes of change in market value share prices
Policy & Politics - The policies of a government, such as changes to
rules, taxes, or interest rates, have a significant impact on the
performance and share price of certain companies because they
determine the business environment in which businesses operate.
Governments are in charge of regulating specific industries, and they
occasionally amend the law to make it easier or harder for a given
industry to be successful. Every business is subject to several types of
taxation, and adjustments here will have an impact on its operations
and stock price.
Seasons & Holidays - The stock market is subject to seasonal stock
trends, which cause share prices to grow or fall at specific times of
the year, month, or even week. This may be due to changes in the
amount of traders present in the market or because technical
analysis has increased the "self-fulfilling" nature of historical price
patterns. Since many investors have new funds to invest in stocks in
January, stock markets typically perform well during this month.
Since big traders take vacations during the summer and sell high-risk
assets, share prices typically decline during this time. Stock markets
can also become highly erratic near the conclusion of a fiscal quarter
or year, with the share prices of some corporations changing course.
Resource prices & currency fluctuations - The price of natural
resources such as crude OIL, lumber, cotton or GOLD can have a
dramatic effect on a company's profit and its share price, depending
on how much it produces or consumes of such commodities. foreign
exchange rates affect how much a company pays for the goods it
imports or consumes and earns for the goods it exports or produces
– they too will affect its profit and share price. commodity and
currency markets are very volatile and price changes can be very
fast, meaning shares traders should keep a constant eye on both
markets. if the price of a commodity that a company produces rises,
it will probably earn more profit, which should boost its share price.
If the price of a commodity that a company consumes a lot of rises, it
will probably earn less profit, which could push down its share price.
Market hype and IPOs - The share price of a company can be driven
by hype or "buzz" caused by the rise or fall of fashion trends, press
coverage, rumour, speculation and even a well-publicised IPO,
regardless of whether or not the attention is justified. A company
that introduces a cutting-edge product, or stumbles upon the next
big gimmick, can see its share price rise as consumers rush to buy the
latest "must-have" item. In the run-up up to a company's earnings
report or shareholder meeting, traders will often speculate about
what will be revealed. If they expect a positive announcement, they
may buy the company's stock and push up its share price.
The outside world – A company's share price is affected by much
more than the business performance of the company itself.
Government actions can change the business environment a
company operates in, making it easier or harder for the company to
compete with rivals and earn a profit. The general health of the
economy can stimulate or decrease demand for a company's
products and services, as well as affecting traders' appetite for
investing in risky assets like stocks. Demand for shares in general can
rise or fall depending on what time of the year, month or even week
it is, especially as traders rely more on historical price charts to
predict price moves.

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