Speculation ,depositories margin trading

stock market trading around the world

Presented To: latha sreeram

Presented By: Ashwini Amrutkar 201901
Ganesh Jadhav 201925
Meena singh 201965
Monika Tatte 201966
Introduction

STOCK MARKET INDICE

A stock market index is a statistical measure which shows changes taking place in the stock
market.  It is an subset of the stock market, that helps investors compare current price levels
with past prices to calculate market performance.
 Indices in India are as follows:
a. Benchmark indices like NSE Nifty and BSE Sensex
b. Broad-based indices like  Nifty 50 and BSE 100
c. Indices based on market capitalization like the BSE Smallcap and BSE Midcap
d. Sectoral indices like Nifty FMCG Index and CNX IT
MARGIN TRADING:
 Margin trading is process where an individual can buy more stocks than he can afford.
 It involves buying and selling of securities in one session.

EX. If a Tata Steel stock priced at Rs 400 falls 4.25 per cent and the IM and MM are 8 per cent
and 4 per cent of the total value of the shares bought, respectively, then the trade-off 8%-
4.25%=3.75% will be less than the MM. In this case, you will either have to give more money
to the broker to maintain the margin or t trade will get squared off automatically by the broker.
Leverage of margin trading
•Leverage is increased “trading power” that
is available when using a margin account.
•Its allows you to trade positions Larger
than the amount of money in your trading
account.
•Leverage is the ratio between the amount
of money you really have and the amount
of money you can trade.
•It is usually expressed with an “X:1”
format.
•Benefits of margin trading is that you can
take advantage of current market scenerio
without letting the opportunity go.
Types

Types of indices by weighting method Types of indices by coverage

 Market-Capitalization Weighting  Country Coverage 
 Free-float adjusted Market-  Regional Coverage 
Capitalization Weighting  Global Coverage
 Price Weighting  Exchange-based Coverage 
 Equal Weighting
 Sector-based coverage
 Fundamental Factor Weighting
 Factor Weighting 
 Volatility Weighting
 Minimum Variance Weighting
 Emerging market economy
•It is an  process of becoming a developed economy.

•EM countries include Argentina, Brazil, Chile,China, Colombia, czech Republic,

Egypt, India, Greece, Hungary, Indonesia,Korea, Malaysia, Maxico,Pakistan, Peru,
Philippines, Poland ,Quarter ,Russia, saudi arebia, Taiwan, South africa,Turkey,

WEIGHT
Emerging country weights
bee
China
20.4% Taiwan
South korea
42.53%
4.84% India
8.3% brazil
other
11.47%

12.45%
 Emerging market sector weight

sector weight
2% 3%
4%
4% 20%
consumer discretionery Financial
6% Information technology Communication services
Material Consumer staples
6%
Energy Industrial
Healthcare
18% Real estate
7%
Utility

13%
17%
 Markets annual performance
100
Msci emerging market MSCI ACWI MSCI World
78.51
80

60
39.42
40 37.28
32.14
26.68
22.8
20.95
20.07 18.88
34.63 22.4 18.42
12.67 16.13
15.83
29.99
27.67
11.76
26.6
20 11.66
9.04
18.22 23.97
4.94
4.16
11.19
7.51
-40.71 -5.54 -0.87 7.86 -8.71
0 -7.35
-2.36
-2.6 -2.19 -9.41

-20 -18.42
-14.92 -14.57

-40 -42.19

-53.33
-60
Stock Market Indices - World

World Indices

Japan France USA Germany Hong Kong

China

Xetra DAX
30 Stocks
Hang Seng
225 Stocks 40 Stocks
58 Stocks
Nasdaq Composite
Dow Jones Industrial S&P 500
Average
Focuses on shares
A wider view traded on the Nasdaq
(DJIA or ‘The Dow’) of the US
A narrow view of the Includes many
US stock market
stock market technology companies
30 stocks 500 stocks 3000+ stocks
Performance of developed nation indices
NASDAQ(US Market)
40000 #REF!
35000 33484.08
CAC(France)
30199.69 30280.12
30000
29174.92
DAX (Germany)
24364
25000
24448.07 24091.2 24115.95
23382.15
20000
19592.9
13525.56 13596.89 13795.24
15000
11481.66
13425.85
12074.07
9052
10000 7003.89
8133.3
5512.37
5000 5536.4 5657.44 6065 6111.41
4864.29
1
0
2016 2017 2018 2019 2020
 Country Indices

SENSEX NASDAQ S&P 100 UK HONG

India (US) (US) KONG
THANK YOU