A Dissertation Report

on
Historical analysis of Indian Stock Market
Submitted to
Amity University Jharkhand

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

of
Bachelor of Business Administration
Enrollment No: A36106421068

Under the guidance of

Dr. Shreya Patel
DEPARTMENT OF MANAGEMENT
AMITY SCHOOL OF BUSINESS (ASBRNC)
AMITY UNIVERSITY JHARKHAND
 DECLARATION

I, Yuvraj Kanishk Arya, a student of Bachelor of Business Administration hereby declare

that the Project titled “Historical analysis of Indian Stock Market” that is submitted by me to
the Department of Management, Amity School of Business (ASBRNC), Amity
University Jharkhand, in partial fulfillment of the requirement for the award of the
degree of Bachelor of Business Administration has not been previously formed the basis
for the award of any degree, diploma or other similar title or recognition.

Signature of the Student

Name of Student: Yuvraj Kanishk Arya

Enrolment Number: A36106421068

BBA (2021-24) 3rd Semester

Date:
 CERTIFICATE

On the basis of the Dissertation Report submitted by Yuvraj Kanishk Arya, A36106421068 a
student of Bachelor of Business Administration, I hereby certify that the project report
“Historical analysis of Indian Stock Market” that is submitted to the Department of Management,
Amity School of Business (ASBRNC), Amity University Jharkhand in partial father fulfillment
of the requirement for the award of the degree of Bachelor of Business Administration is an
original contribution with existing knowledge and faithful record of work carried out by
him/her under my guidance and supervision.

To the best of my knowledge this work has not been submitted in part or full for any degree or
diploma to Amity University Jharkhand, Ranchi, or elsewhere.

Signature of Guide (Internal)

Name of the Faculty: Dr. Shreya Patel
Assistant Professor
Amity Business School Ranchi
Amity University Jharkhand, Ranchi
Date:
 ACKNOWLEDGEMENT

The satisfaction that accompanies the successful completion of any task would be
incomplete without the mention of people whose ceaseless cooperation made it possible,
whose constant guidance and encouragement crown all efforts with success. I would like to
thank Dr. Shreya Patel and Amity University for giving me the opportunity to undertake this
project. I would like to thank my faculty guide who is the biggest driving force behind my
successful completion of the project. He has always been there to solve any query of mine
and guided me in the right direction regarding the project. Without his help and inspiration, I
would not have been able to complete the project.
Also, I would like to thank my batch mates who helped me and gave me ideas and motivation
at each step.

Yours faithfully,
Yuvraj Kanishk Arya
A36106421068
BBA (2021-24) 3rd Semester
Table of Contents:

• Title
• Declaration
• Certificate
• Acknowledgement
• Synopsis
• Plagiarism Report
• Historical analysis of Indian Stock Market
• Abstract
• Introduction
• Historical analysis
• Objective of study
• Research Methodology
• National Stock Exchange (NSE)
• Bombay Stock Exchange (BSE)
• Causes of Volatility in Indian Stock Market
• Measures adopted to regulate volatility
• Increment in Market Timing
• Conclusion
• Reference
• Weekly Performance Report (WPR)
• Approval Letter
 Historical analysis of Indian Stock Market
“Yuvraj Kanishk Arya”
Student, Department of Management (B.B.A)
(ASBRNC) Amity University, Jharkhand

Historical analysis of Indian Stock Market

Abstract:
One of the most adaptable industries in the economy is the stock exchange, which is crucial for the
growth of the economy. The stock market may also serve as a Centre for investors to buy and sell shares,
bonds, and other financial instruments. In other words, the stock market might also serve as a barrier-
free platform for trading different assets and derivatives. available Through public issues, many
companies list their business ventures on the market. Future investors are currently making investments
in businesses through the stock market to profit. The Bombay Stock Exchange (BSE), the National
Stock Exchange (NSE), and consequently the Calcutta Stock Exchange are the three listed stock
exchanges in India (CSE). The largest Indian stock markets are these three.

Introduction:
The Indian stock markets are well-known both in Asia and on the international scale. While
the National Stock Exchange (NSE) is among the greatest in terms of complexity and
technological innovation, the Bombay Stock Exchange (BSE) is one of the oldest exchanges
in the world. After the economy was opened up in the early 1990s, the Indian stock market
truly took off. The whole decade of the 1990s was devoted to develop and perfect an effective
and efficient method. The "badla" system was shut down to reduce unneeded volatility,
whereas the derivatives sector just began in 2000. The progressive implementation of corporate
governance regulations sparked the process of bringing listed businesses up to parity. The "dot
com bubble crash," 9/11, and the rise in oil costs all contributed to a paradigm change in the
economic climate on a worldwide scale. The equation became more difficult as a result of the
US economy's downturn and the tightening of interest rates. However, after 2000, thanks to
strong growth, a mature economy, and flexible rules, institutional and other outside investors
had greater room to operate. As a result of the system's opening up, there has been an increase
in integration and cross-border capital movement, with India emerging as an investment "hot
spot." As a result, our stock exchanges are now more susceptible than ever to global cues.
The study compares and contrasts the Indian Stock Market with its numerous global
competitors. Cross-border integration has resulted from exchanges now operating outside of
their home countries to expand their service territories. Exchanges have also started to provide
cross-border trading to provide investors with their possibilities for foreign investments. This
not only made the exchange more appealing to investors, but also brought in greater volume.
Due to international competitiveness, organisations are under pressure to look for financing
outside of their home country. Exchanges often approach companies outside of their home
region and push them to list on their exchange. According to investor base, the Indian stock
market ranks third in the world and has a total of roughly 20 million investors. On the nation's
stock exchanges, there are more than 9,000 companies listed. Asia's oldest stock exchange is
the Bombay Stock Exchange, which was founded in 1875. The National Stock Exchange, a
more contemporary institution that was founded in 1992, is the biggest and most sophisticated
stock market in India and ranks third in terms of transactions among stock exchanges in Asia.
In terms of transaction volume, it is in the top 5 stock exchanges worldwide.

Following table give the country and their exchange with the name of its indices
Indian Stocks (Historical analysis)
As was already said, the early industrialisation of India throughout the late nineteenth and early
twentieth century was greatly influenced by the Indian Stock Markets. The biggest steel
factories and therefore the textile mills were financed through the stock market. Considering
the magnitude of the financial industry in those days, the range of those capital raising activities
was substantial. Beginning in the late 1950s, the country began a communist internal
improvement model that sought to provide the general open division control over the
economy's directing statures. Due to the nationalisation of banks and insurance businesses and
the rise in prominence of development financial institutions, the state assumed authority over
the distribution of resources within the economy. The emergence of a regime of monetary
repression caused the stock market to remain stagnant. The marketplaces in New Delhi were
reaching their breaking point between 1984 and 1992. The stock market went through the sky
as a result of the markets' enthusiastic response to the final wave of changes in the middle of
the 1980s and to the biggest reform programme of 1991. The stock market index increased
roughly 10 times between October 1984 and September 1992, for a compound annual return
of 34%.

Objective of Study
1. To review the reasons behind stock market volatility in India.
2. To thoroughly study the many facets of the Indian Stock Exchange.
3. To evaluate the steps taken to control volatility.

Research Methodology
Secondary data are the foundation of this investigation. The necessary information on the
Indian Stock Exchange, Bombay Stock Exchange (BSE), and National Stock Exchange (NSE)
is gathered from a number of sources, including the SEBI Handbook of Statistics, the
Government of India, and Federal Reserve Bank of India Bulletins. CNX Data is downloaded
from the NSE websites in nifty format. In order to calculate the index value for each year, daily
closing index values are averaged, which is thought to be a more accurate indicator of the index
for the whole year than any individual days' or months' closing index values.
National Stock Exchange (NSE)
New company eligibility requirements (IPOs)

• Not less than 10 billion in fully paid up

• Capital Minimum 25 billion in market capitalization a
track record spanning
• At least three years
• No referral to the Board for Industrial and Financial Reconstruction has been made for
this firm (BIFR).
• The company's losses throughout time have not completely erased its net value,
preventing it from being in the negative.
• No winding-up petition that has been approved by a court has been submitted to the
corporation.
• Promoters are defined as one or more individuals who, individually or collectively,
possess at least 20% of the post-issue equity share capital and have a minimum of three
years of experience each in the same field of business.
• There hasn't been any punishment from other stock exchanges or regulatory bodies in
the previous three years.
• Existing businesses that are listed on different stock exchanges Paid-up Capital: 10
billion dollars or more Minimum market capitalization of Rs. 25 crores. Companies
registered on other stock markets must meet minimum listing requirements. The firm
should have a minimum of Rs. 3 crores in issued and paid-up equity capital.
• The Business should have a three-year history of profitability. a minimum net value of
20 crores of rupees–

Bombay Stock Exchange (BSE)

New company eligibility requirements (IPOs)
According to the provisions of the Securities Contracts
(Regulation) Act, 1956, Securities Contracts (Regulation)
Rules, 1957, Companies Act, 1956, Guidelines issued by SEBI, and Rules, Byelaws,
and Regulations of BSE, the BSE Limited has a dedicated Listing Department to
approve the listing of securities of companies.

Eligibility requirements:

• IPOs & FPOs: Public Offerings & Follow-On Public Offerings:

• Minimum Listing Conditions for New Businesses
The applicant firm (hence referred to as "the Company") must have a minimum post-issue
paid-up capital of Rs. 10 crores for IPOs and Rs. 3 crores for FPOs, as well as a minimum
issue size of Rs. 10 crore and a minimum market capitalization of Rs. 25 crores.
Fig. Difference between NSE and BSE

Fig. NSE and BSE chart in crores

Causes of Volatility in Indian Stock Exchange:

The stock market's volatility is influenced by a variety of factors, including changes in the
interest rate, the cost of borrowing money, corporate profits, dividend policies, bond prices,
and a wide range of macroeconomic, social, and political variables, including global trends,
economic cycles, economic processes, budgets, general business conditions, credit policy,
etc.
Volatility is fueled by trading volume, then by the arrival of the most recent information
about new discoveries or any other relatively confidential information that influences market
stock values.

In essence, it contends that psychological or sociological ideas have a greater impact on

investor behaviors than sound economic reasoning do on the market.

Since volatility may be a crucial metric used in many financial applications, such as asset
management and risk management as well as the pricing of derivatives, it is vital to evaluate
volatility.
The magnitude of modelling mistakes for returns and other financial variables is measured by
volatility.
It has been found that the usual amount of volatility for many classes of models is not
constant but varies over time and is predictable.

Financial market volatility is frequently a significant barrier to attracting investment in tiny

emerging economies.
High returns and minimal volatility are regarded as indicators of an established market..

Measures adopted to regulate volatility:

• Circuit Breakers
A trading device called Circular Breakers. Interferes with a flow that is uneven or
lacking. It is an implement that disrupts the evolution of a serious problem that is both
ongoing and in the capacity of a switch is exhausted by increasing.
The Essentially, an electrical switch is designed for switching an electrical circuit on or
off, in this protects the electrical system in a way against harm.

• Pre-Trading Sessions
Pre-open meetings last 15 minutes, for instance from 9:00 to 9:15 in the morning. Order
assortment and request coordination are covered during the pre-open meeting.
The 20% value band is suitable for preopen meetings. Order entry, order revision, and
order cancellation are all permitted throughout the order collection period of 8*
minutes.
• Advertise orders are synchronised with residual qualifying breaking point orders.

• Market orders and advertising orders are synchronized

• On a continuous basis, information such as the indicative balance/opening cost of the

security, the total purchase and sale amount of the security, is disseminated to people
via the NEAT Terminal.

• Increment in Market timing:

The trade traded value subsidiaries market is eventually open from 9:55 am to 3:30 pm,
and the market hours are the same as those of the basic money market.

Trade traded product destinies promote works from 8:00 am to 11:30 pm, whereas trade
exchanged cash subsidiaries do so from 9:00 am to 5:00 pm.
Market Timings of Different Items/Showcases in India provides a connection between
market timings of various items/markets.
Market and Product Timing Money Market from 9:55 until 3:30.
Derivatives for equity from 9:55 until 3:30.
Currency Options 9 a.m. to 5 p.m. Agricultural Derivatives 8 a.m. to 11:30 p.m.

Fig. Market timing

Conclusion
The study draws a number of interesting results, many of which support widely held
assumptions.The goal of the entire study was to attempt a comparison of the various
stock exchanges based on specific parameters in order to comprehend the effects of
financial world integration on the various entities that make up it, particularly in the
context of globalisation and increased interest in the capital markets fueled by soaring
growth.

Without really reaching any definitive proof on how our stock exchange stacks up
against other global stock exchanges, the many study papers that have been analysed
chronicled the progressive "coming of age" of the Indian stock market over the previous
ten years. The investigation yields a variety of intriguing findings, many of which
confirm common beliefs.In order to understand the effects of financial world
integration on the various entities that make it up, especially in the context of
globalisation and increased interest in the capital markets driven by soaring growth, the
entire study's objective was to attempt a comparison of the various stock exchanges
based on specific parameters.The numerous study papers that have been analysed have
recounted the increasing "coming of age" of the Indian stock market over the preceding
10 years, but without actually coming to any conclusive proof on how our stock
exchange compares to other worldwide stock exchanges.
 Reference:

• Financial system report by the Narasimham Committee from 1992.

• Report of the L.C. Gupta Committee (1997)

• Derivatives were gradually adopted in India following the recommendation.

• www.nseindia.com

• Capital Line, Inc. http://www.futuresindustry.org/volume-.asp