INTRODUCTIONStock markets are highly correlated

in the era of globalisation. The world has became

a small global village.

New York Stock Exchange.

•Origin - May 17, 1792, •World's largest stock exchange by market capitalization of its listed companies at US$14.242 trillion as of Dec 2011.

•Average daily trading value was approximately US$153 billion in 2008.

Introduction

NASDAQ

•The NASDAQ Stock Market originally stood for National Association of Securities Dealers Automated Quotations.

•Founded 1971 by the National Association of Securities Dealers(NASD)

•Second-largest stock exchange by market capitalization in the world.

INTRODUCTION

The Bombay Stock Exchange -oldest exchange in Asia.

Bombay Stock Exchange (BSE), (Bombay Śhare Bāzaār) is a stock exchange located on Dalal Street, Mumbai, Maharashtra, India.

Established in 1875, BSE Ltd. (formerly known as Bombay Stock Exchange Ltd)

BSE’s popular equity index - the SENSEX

BSE

The case study has been conducted by looking into the nature of relationship between the daily share price in BSE and NSE on the one hand and Nasdaq and New York Stock Exchange on the other, for 1999-2000 through 2000-2001.

CASE STUDY

Source : Deutsche Börse’s

Unidirectional casualty between Nasdaq and Bse or Nse.

The same relationship as well as direction of influence also holds good for the technology segment of the New York Stock Exchange and BSE or NSE.

However, domestic prices of technology stocks and overall domestic share prices were found to be independent of each other

CASE STUDY

CORRELATION BETWEEN BSE-SENSEX AND OTHER SELECT INDICES

Indices Correlation T test results

level of correlation

Sensex & Dow Moderate

Sensex & NYSE Strong

Sensex & NASDAQ Weak

Sensex & S&P500 Weak

Sensex & HangSeng Strong

Sensex & Nikkei 225 Weak

Sensex & FTSE100 Moderate

Sensex & SSE Composite index Strong

Lowest correlation was recorded between Sensex and NASDAQ.

The correlation of Indian stock market is weak with NASDAQ and S&P500 of US market and with Nikkei225 of Japanese stock market Highest correlation was recorded between Sensex and Hang Seng.

Conclusion

BSE TECk AND NASDAQ BSE TECHBSE TECk index was launched by Bombay Stock Exchange provide a reliable index for benchmarking the performance of the TMT (Technology Media and Telecom) sectors in India

NASDAQ

NASDAQ stands for National Association of Securities Dealers Automated Quotation

The NASDAQ Composite Index is the most widely tracked technology stock index in the world

It was proved that-

1. Both NASDAQ and BSE TECk financial series are non stationary

2. Both the series are co-integrated

3. NASDAQ use to forecast BSE TECk

4. BSE TECk does not use to forecast NASDAQ

WHEN COMPARED THE BSE TECk AND NASDAQ

CONCLUSION

• So we can conclude that movement in NASDAQ causes movement in BSE TECk.

•BSE TECk and NASDAQ are positively correlated

• Estimates that calculated will rarely match with the absolute value that BSE TECk may reach a day after NASDAQ has changed on prior date.

• Consequently, the estimated values should be used to identify trend and not judge absolute value of BSE TECk on a particular day.

The London Stock Exchange, or LSE, was formed around 300 years ago, and today lists about 2,500 companies from 70 countries. 

Many large U.S. companies listed on American exchanges also list on the London Stock Exchange. 

General Electric is one example.

INTRODUCTION LONDON STOCK EXCHANGE

LISTING REQUIREMENTS

BSE LSE

Market Capitalization 250 million $700000

Number of float shares

25% 25%

Accounting Standard Indian GAAP IFRS

Timeline on going public

6 months 4 – 24 months

Equity market listing fees

Rs. 20000 GBP million

LISTING REQUIREMENTS OF STOCK EXCHANGE

FTSE 100 Index5,937.33

-8.52 (-0.14%)

December 2011 to December 2012

FTSE 100 Index Chart

Bse Sensex19,229.26

-126.00 (-0.65%)

December 2011 to December 2012

Bse Sensex Chart

Recent market conditions have affected investor confidence and the number of new companies joining the markets across the globe. Despite this, investor appetite in the Indian economy and Indian companies has remained strong and continues to grow.

There has been a significant increase in the trading of Indian paper in London this year. Indian companies can take advantage of this opportunity, it is a strong sign of the growing investor interest for Indian companies in London and makes a London listing even more attractive than before.

RECENT EVENTS

Comparison of BSE SENSEX and UK FTSE

CONCLUSION

•The results indicate that macro economics factor have significant affect on stock exchange.

•It may affect the different industry positively or negatively.

•Two industries namely Building Materials and Merchants and Engineering suffer because of exchange rate movements.

SHANGHAI STOCK EXCHANGE

LOCATION SHANGHAI, CHINA

FOUNDED RE- ESTABLISHED

1891 1990

KEY PEOPLE GENG LIANG---CHAIRMAN ZHANG YUJUN--- PRESIDENT

CURRENCY RENMINBI ( RMB )

1 RENMINBI 8.72 INDIAN RUPEE

FACTORS THAT BENEFIT BSE AGAINST SSE

• Tax incentives• Predictabiity• Transparency• Principles of international guidelines

FACTORS IN WHICH INDIA LAGS BEHIND

• Nation of high savers• High capitalisation• Listed chinese companies are huge by Indian

standards• Less of Foreign direct investment

• Shanghai announces 24 hour trading by 2020

INDIA AND CHINA’S PERFORMANCE IN THE LAST 5 YEARS

Better corporate profitability

India’s equity capital markets are more developed than China’s

Greater exposure to the private sectorIndia’s driver of economic

growth is consumption instead of volatile exports.

REASONS FOR CHANGE IN LAST 5 YEARS

Effects on global economy and India

India and china are the two emerging economies of Asia

Reduced investments by the global investors in Asia.

Lower confidence among global investors.

Reduced global growth rate.