Presentation on

Stock Market & it’s Functioning

 Stock Market

A Stock Market or Equity Market is a public entity for the trading of

company stock and derivatives at an agreed price; these are
securities listed on stock exchange as well as those only traded
privately.

The Securities and Exchange Board of India (SEBI) is the

principal regulator for Stock Exchanges in India. SEBI's primary
functions include protecting investor interests, promoting and
regulating the Indian securities markets.
 Nifty
The NIFTY 50 index National Stock
Exchange of India's benchmark broad
based stock market index for the Indian
equity market. It represents the weighted
average of 50 Indian company stocks in 13
sectors and is one of the two main stock
indices used in India.
 Adani Ports and Special Economic Zone Ltd.  IndusInd Bank Ltd.
 Asian Paints Ltd.  Infosys Ltd.
 Axis Bank Ltd.  JSW Steel Ltd.
 Bajaj Auto Ltd.  Kotak Mahindra Bank Ltd.
 Bajaj Finance Ltd.  Larsen & Toubro Ltd.
 Bajaj Finserv Ltd.  Mahindra & Mahindra Ltd.
 Bharat Petroleum Corporation Ltd.  Maruti Suzuki India Ltd.
 Bharti Airtel Ltd.  NTPC Ltd.
 Bharti Infratel Ltd.  Nestle India Ltd.
 Britannia Industries Ltd.  Oil & Natural Gas Corporation Ltd.
 Cipla Ltd.  Power Grid Corporation of India Ltd.
 Coal India Ltd.  Reliance Industries Ltd.
 Dr. Reddy's Laboratories Ltd.  State Bank of India
 Eicher Motors Ltd.  Sun Pharmaceutical Industries Ltd.
 GAIL (India) Ltd.  Tata Consultancy Services Ltd.
 Grasim Industries Ltd.  Tata Motors Ltd.
 HCL Technologies Ltd.  Tata Steel Ltd.
 HDFC Bank Ltd.  Tech Mahindra Ltd.
 Hero MotoCorp Ltd.  Titan Company Ltd.
 Hindalco Industries Ltd.  UPL Ltd.
 Hindustan Unilever Ltd.  UltraTech Cement Ltd.
 Housing Development Finance Corporation Ltd.  Vedanta Ltd.
 ICICI Bank Ltd.  Wipro Ltd.
 ITC Ltd.  Yes Bank Ltd.
 Indian Oil Corporation Ltd.  Zee Entertainment Enterprises Ltd.
 SENSEX
Sensex, is the benchmark index of the Bombay Stock Exchange (BSE) in India.
Sensex comprises 30 of the largest and most actively-traded stocks on the
BSE, providing an accurate gauge of India's economy. The Sensex is the oldest
stock index in India. Analysts and investors use the Sensex to observe the
overall growth, development of particular industries, and booms and busts of
the Indian economy.
BOMBAY STOCK EXCHANGE (BSE)

The Bombay Stock Exchange (BSE) is the first and largest securities market
in India. Based in Mumbai, India, the BSE lists close to 6,000 companies
and is one of the largest exchanges in the world, along with the New York
Stock Exchange (NYSE), NASDAQ, London Stock Exchange Group, Japan
Exchange Group, and Shanghai Stock Exchange.
It has also contributed to bringing technology into the financial sector. It
introduced BOLT (BSE online trading system) in 1995 to promote
transparency and eliminate any errors. And then came the
dematerialization of shares in 2015. Here, shareholders convert their
physical shares to electronic balances linked to their Demat accounts.
https://www.bseindia.com/
NATIONAL STOCK EXCHANGE (NSE)
The National Stock Exchange of India Limited (NSE) is India's
largest financial market. The National Stock Exchange of India
Limited was the first exchange in India to provide modern,
fully automated electronic trading. The flagship index, the
NIFTY 50, represents about 63% of total market capitalization
listed on the exchange. The index itself covers 13 sectors of
the Indian economy across 50 stocks.
https://www.nseindia.com/
 STOCK MARKET CONDITION
There are two ways to describe the general conditions of stock market
 Bull Market
 Bear Market

BULL MARKET
A bull market indicates the constant upward movement of the stock market .A
particular stock that seems to be increasing in value is described to be bullish.

BEAR MARKET
A bear market indicates the continuous downward movement of the stock market. A
stock that seems to be decreasing in value is described to be bearish.
 INITIAL PUBLIC OFFERINGS
• Initial public offering is the process by which a private company can go public by sale of its
stocks to general public. It could be a new, young company or an old company which decides
to be listed on an exchange and hence goes public.
Companies can raise equity capital with the help of an IPO by issuing new shares to the
public or the existing shareholders can sell their shares to the public without raising any
fresh capital.
• After IPO, the company's shares are traded in an open market. Those shares can be further
sold by investors through secondary market trading.
• https://www.chittorgarh.com/ipo/ipo_list.asp
 DEMAT ACCOUNT
• Demat Account is an account that is used to hold shares and securities in
electronic format. The full form of Demat account is a dematerialized
account. The purpose of opening a Demat account is to hold shares that
have been bought or dematerialized (converted from physical to electronic
shares), thus making share trading easy for the users during online
trading.
• Demat account provides a secure, easy, and convenient way of holding
shares and securities. It eliminates the risk of theft, forgery, loss and
damage of physical certificates. A Demat account ensures immediate
transfers of securities. Once the trade is approved, the shares and
securities are automatically transferred to your account.
 Future & Options
 Future is a right and an obligation to buy or sell an underlying stock (or other
assets) at a predetermined price and deliverable at a predetermined time.

 Options contract grants the right, but not the obligation to buy or sell an
underlying asset at a set price on or before a certain date. A call option gives the
holder the right to buy a stock and a put option gives the holder the right to sell a
stock.
 The purchase of a call option is a long position, a bet that the underlying futures
price will move higher. For example, if one expects corn futures to move higher,
they might buy a corn call option. The purchase of a put option is a short position,
a bet that the underlying futures price will move lower.
Factors that affects the Price of Shares
• Demand & Supply
• Interest Rate
• Investors
• Dividends
• Management
• Economy
• Political Climate
• Profitability of Company
• Short-term & Long-term Investors
Factors that affect Indian Stock Market
• Budget Announcement
• Government Changes
• Government Measures
• Corporate Tax
• RBI Monetary Policy
• FPI flows
• Rates, Oil, INR
• Inflation
• Industrial Activity
• Global Incidents
BSE’s 2019 Performance
After the announcement of Budget
Effect of Government Measures on BSE
Past 1 year Performance of BSE
Past 5 year’s Performance of NSE
Why Indian Stock Market
is at all time HIGH
despite of a
Slowdown in Economy ?
Because,
Government is taking unthinkable actions :
• Cut in Corporate Tax.
• Decision to sell BPCL to a private acquirer for approx. $10 Billion.
• Rolling back Long-term Capital Gain (LTCG)
• Making Air India more sellable by permitting 100% Equity Sale.
• Govt is expected to tweak to Income tax, GST, LTCG & DDT etc.
• On Monetary Policy front, RBI has cut the policy rate by 135 basis
points since February this year.

Inspite of weak state of economy, the market is focused on other

reforms that people believe are likely to be announced in the next 6
months or so.
Thus, the prime market driver is the EXPECTATION of more
government measures to speed up economic recovery.
THANK YOU