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Presented by_ANIMESH SARKAR ANOOP.M.TALAGERI
Introduction
MARKET: A medium that
allows buyers and sellers of a specific
good or service to interact in order to
facilitate an exchange.
It has two forms physical and virtual.
Stocks and Stock Market
Stocks are issued by companies in order to
raise capitals and are bought by investors in
order to acquire a portion of the company.
Stock market or equity market is the place
where buying and selling of stocks takes
place.
Equity = assets - liabilities
History of Indian stock market
BSE(Bombay Stock Exchange)
BSE became the first stock exchange recognized by Indian Government in 1957
Market capitalization $1.7 trillion
NSE(National Stock Exchange)
Established in 1992
Market capitalization $1.65 trillion
BSE NSE
11th largest stock exchange in the
world
10th largest stock exchange in the world
Sensex and Nifty
Sensex is stock market
index of BSE which
includes 30 companies.
Calculated using ‘Free-
float market
capitalization’ with
index value 100 and
market capitalization in
base year 1978-79.
Nifty is stock market
index of NSE which
includes 50
companies.
Same method but
index value 1000
and market
capitalization in base
year base year 1995.
Sensex and Nifty Sensex/nifty= sum of free float market
capitalization*index value/market cap
in base year.
Free float market capitalization = free
float share * market price of share.
Factors affecting stock market
Economic growth :Higher growth will help
firm be profitable because there will be
more demand for goods and services.
Lower interest rate: It make shares
attractive than saving moving money in a
bank.
Stability : Stock market dislikes shocks that
could threaten economic stability and future
growth.
Factors affecting stock market
Confidence and expectations: Stock market is lot dependent on mood of the investors. If predicted wrong the market falls.
Related markets: People not buying overpriced government bonds or commodities can invest in shares.
Why stock market?
Good return : Stock market can give huge
return which is not possible from other
source.
Long term investment : Stock market gives
chances for long term investment until the
stock get appreciated.
Regular income : Regular income is
promised while investing that for long term.
Why stock market?Take your own decisions : In stock market you can actually decide on your own regarding the extent and type of investment.
Transparent procedure : Stock market procedures are regulated by autonomous bodies.
Take part in growth : Investor can take part in growth of company and eventually the growth of the country.
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 MARKETA bear market indicates the continuous downward
movement of the stock market. stock that seems to be
decreasing in value is described to be bearish.
timeline
2014 2015• BSE among world’s
best performers.• Sensex rising above
29% from 21,140 to 27,317
CHINA ECONOMY MELTDOWN AND ITS
EFFECT ON INDIAN MARKET IN THE FOLLOWING WAYS
Good for smart cities.
Good for deficit and inflation management.
Bad for automobile industry
Gold prices may be down temporarily.
Electronics may get cheaper.
Bad for Indian exporters.
2015
• Stock market is the backbone of a country’s
economy
• It is a measure of development of a country.
• It reflects the state of condition of people’s
assets and liabilities.