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.