bse & nse accounts

NSE :

NSE BSE &

By the end of the session:

By the end of the session What is an Index Importance & types of an Index Knowing SENSEX and NIFTY 50 Market capitalization Free-float market capitalization What is Large-cap , Mid-cap, Small-cap Calculating Sensex & Nifty Criteria's of companies to be a part of Sensex

What is an Index? :

What is an Index ? Index is basically an Indicator For E.g.: Thermometer which indicates the temperature Similarly, SENSEX and Nifty are also indicators. It gives you a general idea about whether most of the stocks have gone up or down . SENSEX The prices of the stocks of most of the major companies on the BSE & NSE have gone up

Importance of Index:

Importance of Index INDEX GIVES AN IDEA OF THE MARKET BEHAVIOR PERFORMANCE OF A PARTCULAR SECTOR IS OBTAINED AN IDEA OF HOW THE ECONOMY IS FARING HELPS INVESTORS, FDI,FII’s

SENSEX AND NIFTY:

SENSEX AND NIFTY SENSEX BOMBAY STOCK EXCHANGE NIFTY NATIONAL STOCK EXCHANGE Top 30 Stock of the BSE Top 50 Stock of the NSE

OTHER TYPES OF INDEXES IN INDIA:

OTHER TYPES OF INDEXES IN INDIA OTHER INDEXES IN INDIA Metal stocks FMCG stocks Automobile stocks Metal index FMCG Index Auto Index

Some Important Terms:

Some Important Terms To understand more about Indian Market we need to understand few important terms. Market Capitalization Simply the worth of a company in terms of it’s shares No. of shares in market x Current price of Stocks ONGC, has a market cap of “ Rs. 3 Lakhs Cr” Example 

Concept of capitalization:

Concept of capitalization If market capitalization > $10 Bn LARGE CAP If market capitalization > $2Bn But < $10 Bn MID CAP If market capitalization > $ 300 Mn But < $ 2 Bn SMALL CAP

HOW IS SENSEX CALCULATED:

HOW IS SENSEX CALCULATED To Calculate Sensex  Free-float market capitalization Only the “open market” shares that are free for trading by anyone are called the “free-float” shares Different types of investors hold the shares of a company! The Govt. may hold some of the shares. Some of the shares may be held by the “founders” or “directors” of the company. All the shares of a company may not be available for open market sale

Slide 10:

Company Open market Closed Shares 1)Holdings by founders/directors acquirers which has control element 2)Government holding as promoter/acquirer 3)Holdings through the FDI Route 4)Strategic stakes by private corporate bodies/ individuals 5)Equity held by associate/group companies Free – Float Shares

Value of the Sensex :

Value of the Sensex 1)“free-float market cap” of all the 30 companies that make up the Sensex! 2) All the “free-float market cap’s” of all the 30 companies are added Make all this relative to the Sensex base. Suppose, for a “free-float market cap” of Rs.100,000 Cr... the Sensex value is 4000… Then, for a “free-float market cap” of Rs.150,000 Cr... the Sensex value will be.. So, the Sensex value will be 6000 if the “free-float market cap” comes to Rs.150,000 Cr!

Which 30 companies? :

Which 30 companies? Selection of companies Index committee Index committee Academicians Mutual fund managers Finance journalists Independent governing board

Criteria for selecting the 30 Stocks:

Criteria for selecting the 30 Stocks Criteria Market capitalization The company should have a market capitalization in the Top 100 market capitalization’s of the BSE Trading frequency The company to be included should have been traded on each and every trading day for the last one year Industry representation The companies should be leaders in their industry group. Listed history The companies should have a listing history of at least one year on BSE

Conclusion:

Conclusion Raising Capital for Businesses Mobilizing Saving for Investment Facilitating Company Growth Profit Sharing Creating investment opportunities for small investors Government Capital Raising for Development Projects Barometer of Economy Creates Employment Opportunity

ANY QUESTIONS:

ANY QUESTIONS

Thank You:

Thank You By:- Priyanka Milena Kedar Akshay Sohan Jitendra & Hemanta