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PRAEDICO GLOBAL RESEARCH PVT.

LTD
Name :- DHVANI CHAUHAN
Task 1 :- What is market timing and their importance? And Write
down top 25 company based on the market cap along with the market
capitalization?

 What is market timing and their importance ?


- Market timing is the act of moving investment money in or out of a
financial market or switching funds between asset classes based on
predictive methods. If investors can predict when the market will go up
and down, they can make trades to turn that market move into a profit.

Usually the market timings are 9:15 am to 3:30 pm


The market timings are divided into 4 types:-
1. Pre market session
2. Normal market session
3. Post market session
4. After market session

1. Pre market session:-


Pre-Open market session is utilised to arrive at the ideal opening price of a stock for
the current trading session. The duration of the pre-open market session is from 9:00
a.m. to 9:15 a.m. which is 15 minutes before the trading session starts on: NSE and
BSE. Pre open market strategy is provided to stabilise heavy volatility due to some
major event or announcement that comes overnight before the market actually opens
for trading.

Break-up of Pre Open Market Session


1. Order Entry Session :-
From 9:00 am to 9:08 am (8 minutes)
The task undertaken in this sub session are :-
- Placing the order to buy and sell the stocks
- Modify or cancel the orders.

After these initial 8 minutes, no orders are accepted

2. Order Matching Session :-


From 9:08 am to 9:12 (4 minutes)
The task undertaken in this sub session :-
-Order confirmation and order Matching
-Calculating the opening price of the stocks for the
normal session.

During this time you cannot buy, sell, modify or cancel


the order

3. Buffer Session:-
From 9:12 am to 9:15 (3 minutes)
The task undertaken in this sub session :-
- Buffer Session
- Facilitates the transition from pre- open to regular
market session

This sub session is used as buffer for any


abnormalities in the previous two sessions.

2. Normal Market Session :-


This is the primary Indian share market timing lasting from 9.15 a.m. to
3.30 p.m. Any transactions made during this time follows bilateral order
matching system, wherein price determination is done through demand
and supply forces.

3. Post Market Session:-


The post-market session or closing session is open from 3:40
pm to 4:00 pm and only market orders are allowed. Investors may
purchase or sell the orders at market price during post market
session.

4. After Market Session:-


After Market Order (AMO) is an order type that can be used to
place orders outside of regular trading hours and is executed
once the market opens. AMOs are especially useful for users who
cannot actively track the markets during regular trading hours. It’s
timings are 3:45 pm to 8:59 am.
What is Market Capitalization?
Market capitalization refers to the total dollar market value of a company's
outstanding shares of stock. The investment community uses this figure to
determine a company's size instead of sales or total asset figures. In an
acquisition, the market cap is used to determine whether a takeover
candidate represents a good value or not to the acquirer.

There are 2 types of market capitalization


1. Float market capitalization
2. Full market capitalization

1. Float market capitalization: -


In standard market capitalisation, the calculation involves determining the total number
of outstanding shares, including both public and privately owned ones. However, in free-
float market cap method, the valuation of a company relies only on the outstanding shares
held publicly. this share number is then multiplied with the price for each share.

2. Full Market Capitalization:-


Full market capitalization, also known as total market capitalization, is the
total value of all outstanding shares of a publicly traded company. It is calculated
by multiplying the current market price of a single share by the total number of
outstanding shares of the company. Full market capitalization is an important
metric used by investors to evaluate the size and overall worth of a company.
Top 25 Companies based on market capitalization and free
float market capitalization

Sr. Company Name Free Market


No Float Cap
Market (CR)
Cap
(CR)
1. RELIANCE INDUSTRIES 793,040 16,01,778

2. TATA CONSULTANCY SERVICES 318;288 11,49,057

3. HDFC BANK 691,974 929,947

4. ICICI BANK 629,392 629,392

5. HINDUSTAN UNILEVER LIMITED 228,440 599,580

6. INFOSYS LTD. 443,137 522,013

7. HOUSING DEVELOPMENT 503,044 503,044


FINANCE CORPORATION

8. ITC. LTD. 497,307 497,307

9. STATE BANK OF INDIA 206,377 485,498

10. BHARTI AIRTEL LTD. 193,417 430,965


11. KOTAK MAHINDRA BANK 278,785 376,482

12. BAJAJ FINANCE LTD. 159,131 360,923

13. LIC 12,056 344,459

14. LARSEN & TURBO LTD. 311,173 311,173

15. HCL. TECHNOLOGIES LTD. 111,091 282,818

16. ASIAN PAINTS LTD. 244,328 266,036

17. AXIS BANK LTD. 244,328 262,043

18. MARUTI SUZUKI INDIA 114,329 262,043

19. SUN PHARMACEUTICAL LTD. 109,075 239,621

20. TITAN COMPANY LTD. 108,952 231,321

21. AVENUE SUPERMARKETS LTD. 56,698 226,704

22. ULTRA TECH CEMENTS LTD. 89,495 223,513

23. ADANI ENTERPRISES LTD. 65,902 214,177

24. BAJAJ FINSERV LTD. 83,846 213,620


25. NESTLE INDIA LTD. 20,496 197,622

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