an overview of stock market and a brief report on recent trends seen in indian market

1. Presented by_
ANIMESH SARKAR
ANOOP.M.TALAGERI

2. 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.

3. StocksandStockMarket
 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

4. HistoryofIndianstockmarket
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

5. BSE NSE
11th largest stock
exchange in the
world
10th largest stock
exchange in the
world

6. 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.

7. SensexandNifty
 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.

8. 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.

9. 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.

10. 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.

11. 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.

12. 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. stock that seems to be
decreasing in value is described to be bearish.

13. timeline
2014 2015
• BSE among world’s
best performers.
• Sensex rising above
29% from 21,140 to
27,317

14. CHINA ECONOMYMELTDOWNAND ITS
EFFECTON INDIANMARKETIN 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

15. • 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.