Indian Stock MarketIndian Stock Market

Market of “Hope, Discipline & Greed”Market of “Hope, Discipline & Greed”

What is Stock ?What is Stock ?

Plain and simple, stock is a share in the Plain and simple, stock is a share in the

ownership of a company.ownership of a company. Stock Stock represents a claim on the company's represents a claim on the company's

assets and earnings. assets and earnings.

As you acquire more stock, your As you acquire more stock, your ownership stake in the company ownership stake in the company

becomes greater. becomes greater.

Whether you say share, equity, or Whether you say share, equity, or stock, it all means the same thing.stock, it all means the same thing.

Classification of stocksClassification of stocks

Stocks are classified as Stocks are classified as

1.1. Common Stock:- Common shares Common Stock:- Common shares represent ownership in a company and a represent ownership in a company and a claim (dividends) on a portion of profits. claim (dividends) on a portion of profits. Investors get one vote per share to elect Investors get one vote per share to elect the board members, who oversee the the board members, who oversee the major decisions made by management major decisions made by management

2.2. Preferential Stocks:- Preferred stock Preferential Stocks:- Preferred stock represents some degree of ownership in represents some degree of ownership in a company but usually doesn't come with a company but usually doesn't come with the same voting rights. the same voting rights.

What is Stock Market ?What is Stock Market ?

A stock market is a market for the A stock market is a market for the trading of publicly held company trading of publicly held company stock and associated financial stock and associated financial instruments (including stock options, instruments (including stock options, convertibles and stock index convertibles and stock index futures).futures).

What is Indian Stock Exchange ?What is Indian Stock Exchange ?

Formal organizations, approved and Formal organizations, approved and regulated by the Securities and regulated by the Securities and Exchange Board of India (SEBI), that Exchange Board of India (SEBI), that are made up of are made up of members who use members who use the facilities to the facilities to exchange certain common stocks.exchange certain common stocks.

INDIAN STOCK EXCHANGESINDIAN STOCK EXCHANGES

Two National Level Exchanges are Two National Level Exchanges are

1.1. National Stock Exchange (NSE)National Stock Exchange (NSE)

2.2. Bombay Stock Exchange (BSE)Bombay Stock Exchange (BSE)

Total 22 Exchanges are there in Total 22 Exchanges are there in India National and Regional level, India National and Regional level, all exchanges conducts 100% all exchanges conducts 100% computerized trading.computerized trading.

NSE – National Stock Exchange

Established In November 1992. Around 3500 Companies Are Listed Around 850 Main Brokers And 10000

Sub Brokers. Non Corporate : 35 - Corporate : 725 Daily Traded Companies Are Around

100% Average Daily Turnover Of Rs. 15000

cr.

BSE – Bombay Stock Exchange Established In 1875 As "The Native

Share And Stock Brokers Association". Oldest Stock Exchange In Asia. Around 7000 Companies Are Listed. Around 935 Main Brokers And 5617

Sub Brokers. Non Corporate: 210 - Corporate : 710 Daily Traded Companies Are Around

3500 Average Daily Turnover Of Rs. 7500

Cr.

I N D I C E SI N D I C E S

Major IndicesMajor Indices Sensex (BSE),S&P CNX Nifty (NSE ), CNX IT Sensex (BSE),S&P CNX Nifty (NSE ), CNX IT

Index, CNX Nifty Junior, CNX Bank IndexIndex, CNX Nifty Junior, CNX Bank IndexOther IndicesOther Indices CNX 100, CNX FMCG Index, S&P CNX 500, CNX 100, CNX FMCG Index, S&P CNX 500,

CNX PSE Index, CNX Midcap, CNX MNC CNX PSE Index, CNX Midcap, CNX MNC Index, S&P CNX Defty, CNX Service Sector Index, S&P CNX Defty, CNX Service Sector Index, CNX Midcap 200, S&P CNX Industry Index, CNX Midcap 200, S&P CNX Industry Indices,  Customized Indices, CNX Energy Indices,  Customized Indices, CNX Energy Index, CNX Pharma Index, CNX Index, CNX Pharma Index, CNX Infrastructure Index, CNX PSU BANK Infrastructure Index, CNX PSU BANK Index , CNX Realty IndexIndex , CNX Realty Index

REGULATERY BODYREGULATERY BODY

SEBI – Securities & Exchange Board of India

Established In 1992, As Per Securities & Exchange Board Of India , Act.

To Protect The Interests Of InvestorsTo Regulate The Securities Market.To Promote The Development Of The Securities Market

Basic requirement for Investing in Basic requirement for Investing in stocksstocks

D-Mat Account:- D-Mat Account:- Saving Bank Account:-Saving Bank Account:- Permanent Account Number Permanent Account Number

(PAN):-(PAN):- Trading Account with Recognized Trading Account with Recognized

Stock Stock

Broker:-Broker:-

D-Mat Account and its BenefitsD-Mat Account and its Benefits

A Dmat account is like a Bank Account, A Dmat account is like a Bank Account, with the difference being that instead of with the difference being that instead of cash, a Dmat account holds shares. cash, a Dmat account holds shares.

Safe & convenient way to hold securities.Safe & convenient way to hold securities. Immediate Transfer of Securities.Immediate Transfer of Securities. No Stamp Duty on Transfer of Securities.No Stamp Duty on Transfer of Securities. Auto. Credit Of Shares Into Dmat

Account, Arising Out of Bonus, Right Issue ,Split, Merger, De-merger.

Trading AccountTrading Account

A Trading account is required if an A Trading account is required if an individual wishes to trade, i.e. buy and sell individual wishes to trade, i.e. buy and sell shares in the stock exchange. A Trading shares in the stock exchange. A Trading account can also be opened with most account can also be opened with most banks and financial institutions, after banks and financial institutions, after filling up the required forms and providing filling up the required forms and providing identity and address proofs. identity and address proofs.

Trading ProcessTrading Process

Once the Dmat account, Trading account Once the Dmat account, Trading account and Bank account are in place, an and Bank account are in place, an individual is ready to start trading. While it individual is ready to start trading. While it is not necessary to have the Dmat is not necessary to have the Dmat account, Trading account and Bank account, Trading account and Bank account with the same organizationaccount with the same organization..

THREE WAYS TO INVEST IN SHARESTHREE WAYS TO INVEST IN SHARES

PRIMARY MARKET:-Where Company Directly Allots His EquityShares To Investors.

SECONDARY MARKET:- Where Allotted Sharein Public Issue Are Bought And Soldby Investors With The Help Of Stock Brokers at Various Stock Exchanges.

Future & Options:- It’s a derivative segmentof Underlying securities.

PRIMARY MARKETPRIMARY MARKET

The primary market is where securities The primary market is where securities are created (by means of an IPO).are created (by means of an IPO).

Initial Public Offering (IPO) is the first sale Initial Public Offering (IPO) is the first sale of stock by a company to the public. A of stock by a company to the public. A company can raise money by issuing company can raise money by issuing either debt or equity. If the company has either debt or equity. If the company has never issued equity to the public, it's never issued equity to the public, it's known as an IPO. This market is known as known as an IPO. This market is known as primary Marketprimary Market

SECONDARY MARKETSECONDARY MARKET

A market on which an investor purchases an A market on which an investor purchases an asset asset

from another investor rather than an issuingfrom another investor rather than an issuing

corporation. corporation.

In this market Brokers becomes In this market Brokers becomes intermediate bodyintermediate body

between buyer and seller.between buyer and seller.

FUTURES & OPTIONSFUTURES & OPTIONS

In finance, a security whose price is In finance, a security whose price is dependent upon or derived from one or dependent upon or derived from one or more underlying assets. more underlying assets. 

The derivative itself is merely a contract The derivative itself is merely a contract between two or more parties.between two or more parties.

Its value is determined by fluctuations in Its value is determined by fluctuations in the underlying asset. The most common the underlying asset. The most common underlying assets include stocks, underlying assets include stocks, bonds, commodities, currencies. bonds, commodities, currencies.

DIFFERENCE IN EQUITY & DERIVATIVESDIFFERENCE IN EQUITY & DERIVATIVES SEGMENTS IN EQUITY MARKETSEGMENTS IN EQUITY MARKETA)A) DELIVERY TRADING OR CASH MARKETDELIVERY TRADING OR CASH MARKETB)B) INTRADY TRADING OR MARGINE MARKETINTRADY TRADING OR MARGINE MARKETF&O MARKET IS COMBINES FEATURES OF F&O MARKET IS COMBINES FEATURES OF

DELIVERY ANDDELIVERY ANDINTRADAY TRADING INTRADAY TRADING PARAMETERS:-PARAMETERS:-A)A) TIMETIMEB)B) NUMBER OF SHARENUMBER OF SHAREC)C) INVESTMENTINVESTMENTD)D) BROKERAGEBROKERAGEE)E) BILATERAL RETURNSBILATERAL RETURNS

TRADING TYPESTRADING TYPESINTRADAY TRADING:-In this type ofINTRADAY TRADING:-In this type oftrading, you don’t have holding of shares,trading, you don’t have holding of shares,you just take a position which is you just take a position which is mustmust to tosquare offsquare off same day before same day before 3:30 o’clock3:30 o’clock..

DELIVERY TRADING :- In this type ofDELIVERY TRADING :- In this type oftrading, you buy shares and trading, you buy shares and holdhold them themtill you receive the returns on yourtill you receive the returns on yourinvestment.investment.

Futures & Option trading (F&O):- In this type ofFutures & Option trading (F&O):- In this type oftrading, you don’t have holding of shares ,you trading, you don’t have holding of shares ,you

justjustmake a contract which ismake a contract which is mus must to t to square offsquare off depending on depending on time frametime frame of contract made of contract made(i.e.1/2/3 month) .(i.e.1/2/3 month) .

TYPES OF ORDERSTYPES OF ORDERS

ON MARKET ORDERON MARKET ORDER

LIMIT ORDERLIMIT ORDER

IMMEDIATE OR CANCEL (IOC) ORDERIMMEDIATE OR CANCEL (IOC) ORDER

STOP LOSS ORDERSTOP LOSS ORDER

TRAILING STOP LOSS ORDERTRAILING STOP LOSS ORDER

FACTORS INFLUENCING CHANGE IN STOCK FACTORS INFLUENCING CHANGE IN STOCK PRICEPRICE

DEMAND & SUPPLY, PROFITS, P.H , P/E DEMAND & SUPPLY, PROFITS, P.H , P/E

RATIO, DIVIDENDS, BONUS SHARES, RATIO, DIVIDENDS, BONUS SHARES,

ECONOMIC NEWS, POLITICAL NEWS, ECONOMIC NEWS, POLITICAL NEWS,

COMPANY NEWS.COMPANY NEWS.

SOME COMMON TERMS IN STOCK SOME COMMON TERMS IN STOCK MARKETMARKET

BULL MARKET, BEAR MARKET, BROKERAGE,BULL MARKET, BEAR MARKET, BROKERAGE,

MARGINE, OPEN, CLOSE, DAY HIGH, DAY MARGINE, OPEN, CLOSE, DAY HIGH, DAY

LOW, PREVIOUS CLOSE, % CHANGE, 52LOW, PREVIOUS CLOSE, % CHANGE, 52

WEEK HIGH LOW, RESISTANCE & SUPPORT, WEEK HIGH LOW, RESISTANCE & SUPPORT, STT,STT,

TOT, OTLVT, STAMP DUTY. TOT, OTLVT, STAMP DUTY.

THANKING YOU ALLTHANKING YOU ALL