Nifty ddkdk;lfkdsfsdkfdk;kf;sdkfdlsfkldskfds;llfksldlfksld;kf;dskl;fkldsk;fks;dkfkdkfkkf;dskfl;dsfk;ldsfk;lkf;ldk;lks;lk;k;lk;dk;ll;k;lk;k;

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  • 7/29/2019 Nifty ddkdk;lfkdsfsdkfdk;kf;sdkfdlsfkldskfds;llfksldlfksld;kf;dskl;fkldsk;fks;dkfkdkfkkf;dskfl;dsfk;ldsfk;lkf;ldk;lks;lk;k;lk;dk;ll;k;lk;k;

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    Indian Stock Exchange NSE

    BY:

    Manu Singhal Nitesh Sabharwal Paramdeep

    Singh Gill Maneet

    Tanu Singhal Paramveer singh Paramjodh

    Naman

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    2/42

    What is a Stock Exchange?

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    Definition of Stock Exchange

    A stock exchange is an entity that provides "trading"

    facilities for stock brokers and traders to trade

    stocks, bonds, and other securities. Stock exchanges

    also provide facilities for issue and redemption ofsecurities and other financial instruments, and

    capital events including the payment of income and

    dividends. Securities traded on a stock exchange

    include shares issued by companies, unit trusts,derivatives, pooled investment products and bonds.

    http://en.wikipedia.org/wiki/Entityhttp://en.wikipedia.org/wiki/Stock_brokerhttp://en.wikipedia.org/wiki/Trader_(finance)http://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/Security_(finance)http://en.wikipedia.org/wiki/Dividendhttp://en.wikipedia.org/wiki/Shareshttp://en.wikipedia.org/wiki/Unit_trusthttp://en.wikipedia.org/wiki/Derivative_(finance)http://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/Derivative_(finance)http://en.wikipedia.org/wiki/Unit_trusthttp://en.wikipedia.org/wiki/Shareshttp://en.wikipedia.org/wiki/Dividendhttp://en.wikipedia.org/wiki/Security_(finance)http://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Trader_(finance)http://en.wikipedia.org/wiki/Stock_brokerhttp://en.wikipedia.org/wiki/Entity
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    4/42

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    5/42

    NSE: National Stock Exchange

    The National Stock

    Exchange (NSE), located in

    Bombay, is India's first debt

    market. It was set up in 1993

    to encourage stockexchange reform through

    system modernization and

    competition. It opened for

    trading in mid-1994. It wasrecently accorded

    recognition as a stock

    exchange by the

    Department of Company

    Affairs. The instruments

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    6/42

    History

    The National Stock Exchange (NSE) is India's leadingstock exchange covering various cities and townsacross the country. NSE was set up by leadinginstitutions to provide a modern, fully automatedscreen-based trading system with national reach.

    The Exchange has brought about unparalleledtransparency, speed & efficiency, safety and marketintegrity. It has set up facilities that serve as a model

    for the securities industry in terms of systems,practices and procedures.

    .

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    Vision and Values

    Purpose

    Committed to improve the financial well-being of people.

    Vision

    To continue to be a leader, establish global presence,

    facilitate the financial well being of people. Values

    NSE is committed to the following core values :

    Integrity

    Customer focussed culture Trust, respect and care for the individual

    Passion for excellence

    Teamwork

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    Partnership

    The S&P CNX Nifty is owned and managed by

    India Index Services and Products Ltd. (IISL),

    which is a joint venture between the NSE and

    CRISIL. IISL is Indias first specialized companyfocused on an index as a core product. IISL has

    a licensing and marketing agreement with

    Standard & Poors, who is a world leader in

    index services.

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    9/42

    Chitra Ramkrishna on 26

    November 2012 was appointed

    as the Managing Director and

    CEO of the National Stock

    Exchange (NSE). Her

    appointment to the position

    would come to effect from 1

    April 2013, for a period of five

    years from the date of joining.Chitra Ramkrishna would be

    replacing the Managing Director

    and CEO of NSE Ravi Narain.

    MD & CEO of NSE

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    10/42

    10

    TRADING HOURS

    NSE's normal trading sessions are conducted

    from 9:00 am India Time to 3:30 pm India

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    S&P CNX Nifty companies ofIndia

    ACC

    Ambuja Cements

    Asian Paints

    Axis Bank

    Bajaj Auto

    Bank of Baroda

    BHEL

    BPCL

    Bharti Airtel

    Cairn India

    Cipla

    Coal India

    DLF Dr. Reddy's Laboratories

    GAIL

    Grasim Industries

    HCL Technologies

    HDFC

    HDFC Bank

    Hero MotoCorp

    Hindalco Industries

    HUL

    Infosys

    ICICI Bank

    IDFC

    ITC Limited

    Jaiprakash Associates

    Jindal Steel and Power

    Kotak Mahindra Bank

    L&T

    Lupin

    Mahindra & Mahindra

    Maruti Udyog

    NTPC

    ONGC

    Power Grid Corporation

    PNB

    Ranbaxy Laboratories

    Reliance Infrastructure

    Reliance Industries

    Sesa Goa

    Siemens

    SBI

    Sun Pharmaceutical

    TCS

    Tata Motors

    Tata Power

    Tata Steel

    Ultratech Cement

    Wipro

    http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/ACC_Limitedhttp://en.wikipedia.org/wiki/Ambuja_Cements_Limitedhttp://en.wikipedia.org/wiki/Asian_Paintshttp://en.wikipedia.org/wiki/Axis_Bankhttp://en.wikipedia.org/wiki/Bajaj_Autohttp://en.wikipedia.org/wiki/Bank_of_Barodahttp://en.wikipedia.org/wiki/Bharat_Heavy_Electricals_Limitedhttp://en.wikipedia.org/wiki/Bharat_Petroleumhttp://en.wikipedia.org/wiki/Bharti_Airtelhttp://en.wikipedia.org/wiki/Cairn_Indiahttp://en.wikipedia.org/wiki/Ciplahttp://en.wikipedia.org/wiki/Coal_India_Limitedhttp://en.wikipedia.org/wiki/DLF_Limitedhttp://en.wikipedia.org/wiki/Dr._Reddy%27s_Laboratorieshttp://en.wikipedia.org/wiki/GAILhttp://en.wikipedia.org/wiki/Grasim_Industrieshttp://en.wikipedia.org/wiki/HCL_Technologieshttp://en.wikipedia.org/wiki/Housing_Development_Finance_Corporationhttp://en.wikipedia.org/wiki/HDFC_Bankhttp://en.wikipedia.org/wiki/Hero_MotoCorphttp://en.wikipedia.org/wiki/Hindalco_Industrieshttp://en.wikipedia.org/wiki/Hindustan_Unileverhttp://en.wikipedia.org/wiki/Infosyshttp://en.wikipedia.org/wiki/ICICI_Bankhttp://en.wikipedia.org/wiki/Infrastructure_Development_Finance_Companyhttp://en.wikipedia.org/wiki/ITC_Limitedhttp://en.wikipedia.org/wiki/Jaiprakash_Associateshttp://en.wikipedia.org/wiki/Jindal_Steel_and_Powerhttp://en.wikipedia.org/wiki/Kotak_Mahindra_Bankhttp://en.wikipedia.org/wiki/Larsen_%26_Toubrohttp://en.wikipedia.org/wiki/Lupin_Ltd.http://en.wikipedia.org/wiki/Mahindra_%26_Mahindrahttp://en.wikipedia.org/wiki/Maruti_Suzukihttp://en.wikipedia.org/wiki/NTPC_Limitedhttp://en.wikipedia.org/wiki/Oil_and_Natural_Gas_Corporationhttp://en.wikipedia.org/wiki/PowerGrid_Corporation_of_Indiahttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Ranbaxy_Laboratorieshttp://en.wikipedia.org/wiki/Reliance_Infrastructurehttp://en.wikipedia.org/wiki/Reliance_Industrieshttp://en.wikipedia.org/wiki/Sesa_Goahttp://en.wikipedia.org/wiki/Siemenshttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Sun_Pharmaceuticalhttp://en.wikipedia.org/wiki/Tata_Consultancy_Serviceshttp://en.wikipedia.org/wiki/Tata_Motorshttp://en.wikipedia.org/wiki/Tata_Powerhttp://en.wikipedia.org/wiki/Tata_Steelhttp://en.wikipedia.org/wiki/UltraTech_Cementhttp://en.wikipedia.org/wiki/Wiprohttp://en.wikipedia.org/wiki/Wiprohttp://en.wikipedia.org/wiki/UltraTech_Cementhttp://en.wikipedia.org/wiki/UltraTech_Cementhttp://en.wikipedia.org/wiki/UltraTech_Cementhttp://en.wikipedia.org/wiki/Tata_Steelhttp://en.wikipedia.org/wiki/Tata_Powerhttp://en.wikipedia.org/wiki/Tata_Motorshttp://en.wikipedia.org/wiki/Tata_Consultancy_Serviceshttp://en.wikipedia.org/wiki/Sun_Pharmaceuticalhttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Siemenshttp://en.wikipedia.org/wiki/Sesa_Goahttp://en.wikipedia.org/wiki/Sesa_Goahttp://en.wikipedia.org/wiki/Sesa_Goahttp://en.wikipedia.org/wiki/Reliance_Industrieshttp://en.wikipedia.org/wiki/Reliance_Infrastructurehttp://en.wikipedia.org/wiki/Ranbaxy_Laboratorieshttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/PowerGrid_Corporation_of_Indiahttp://en.wikipedia.org/wiki/Oil_and_Natural_Gas_Corporationhttp://en.wikipedia.org/wiki/NTPC_Limitedhttp://en.wikipedia.org/wiki/Maruti_Suzukihttp://en.wikipedia.org/wiki/Maruti_Suzukihttp://en.wikipedia.org/wiki/Maruti_Suzukihttp://en.wikipedia.org/wiki/Mahindra_%26_Mahindrahttp://en.wikipedia.org/wiki/Lupin_Ltd.http://en.wikipedia.org/wiki/Larsen_%26_Toubrohttp://en.wikipedia.org/wiki/Kotak_Mahindra_Bankhttp://en.wikipedia.org/wiki/Kotak_Mahindra_Bankhttp://en.wikipedia.org/wiki/Kotak_Mahindra_Bankhttp://en.wikipedia.org/wiki/Jindal_Steel_and_Powerhttp://en.wikipedia.org/wiki/Jindal_Steel_and_Powerhttp://en.wikipedia.org/wiki/Jindal_Steel_and_Powerhttp://en.wikipedia.org/wiki/Jaiprakash_Associateshttp://en.wikipedia.org/wiki/Jaiprakash_Associateshttp://en.wikipedia.org/wiki/Jaiprakash_Associateshttp://en.wikipedia.org/wiki/ITC_Limitedhttp://en.wikipedia.org/wiki/Infrastructure_Development_Finance_Companyhttp://en.wikipedia.org/wiki/ICICI_Bankhttp://en.wikipedia.org/wiki/Infosyshttp://en.wikipedia.org/wiki/Hindustan_Unileverhttp://en.wikipedia.org/wiki/Hindalco_Industrieshttp://en.wikipedia.org/wiki/Hindalco_Industrieshttp://en.wikipedia.org/wiki/Hindalco_Industrieshttp://en.wikipedia.org/wiki/Hero_MotoCorphttp://en.wikipedia.org/wiki/Hero_MotoCorphttp://en.wikipedia.org/wiki/HDFC_Bankhttp://en.wikipedia.org/wiki/Housing_Development_Finance_Corporationhttp://en.wikipedia.org/wiki/HCL_Technologieshttp://en.wikipedia.org/wiki/Grasim_Industrieshttp://en.wikipedia.org/wiki/GAILhttp://en.wikipedia.org/wiki/Dr._Reddy%27s_Laboratorieshttp://en.wikipedia.org/wiki/DLF_Limitedhttp://en.wikipedia.org/wiki/Coal_India_Limitedhttp://en.wikipedia.org/wiki/Ciplahttp://en.wikipedia.org/wiki/Cairn_Indiahttp://en.wikipedia.org/wiki/Bharti_Airtelhttp://en.wikipedia.org/wiki/Bharat_Petroleumhttp://en.wikipedia.org/wiki/Bharat_Heavy_Electricals_Limitedhttp://en.wikipedia.org/wiki/Bank_of_Barodahttp://en.wikipedia.org/wiki/Bajaj_Autohttp://en.wikipedia.org/wiki/Axis_Bankhttp://en.wikipedia.org/wiki/Asian_Paintshttp://en.wikipedia.org/wiki/Ambuja_Cements_Limitedhttp://en.wikipedia.org/wiki/ACC_Limitedhttp://en.wikipedia.org/wiki/India
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    Why do companies issue shares to the public?

    Most companies are usually started privately by their

    promoter(s). However, the promoters' capital and the

    borrowings from banks and financial institutions may not be

    sufficient for setting up or running the business over a long

    term. So companies invite the public to contribute towards

    the equity and issue shares to individual investors. The way toinvite share capital from the public is through a 'Public Issue'.

    Simply stated, a public issue is an offer to the public to

    subscribe to the share capital of a company. Once this is

    done, the company allots shares to the applicants as per the

    prescribed rules and regulations laid down by SEBI.

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    Products

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    Markets

    Currently, NSE has the following major segments of the capital market:

    Equity

    Futures and Options

    Retail Debt Market

    Wholesale Debt Market

    Currency futures

    MUTUAL FUND

    STOCKS LENDING & BORROWING

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    Equity

    NSE started trading in the equities segment (Capital Market segment) on

    November 3, 1994 and within a short span of 1 year became the largest exchange

    in India in terms of volumes transacted.

    Trading volumes in the equity segment have grown rapidly with average daily

    turnover increasing from Rs.17 crores during 1994-95 to Rs.15,687 crores during

    FY 2009-10. Under equity we will be discussing the following points:

    LISTING

    TRADING

    CLEARING AND SETTLEMENT

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    LISTING Listing on NSE provides qualifying companies with the broadest access to

    investors, the greatest market depth and liquidity, cost-effective access to capital,

    the highest visibility, the fairest pricing, and investor benefits. Securities listed on the Exchange are required to fulfill the eligibility criteria for

    listing.

    Eligibility Criteria for Listing

    IPOs by Companies

    1. The paid up equity capital of the applicant shall not be less than Rs. 10 crores

    and the capitalisation of the applicants equity shall not be less than Rs. 25 crores

    2. The Issuer shall have adhered to conditions precedent to listing as emerging from

    inter-alia from Securities Contracts (Regulations) Act 1956, Companies Act1956, Securities and Exchange Board of India Act 1992.

    3. Atleast three years track record.

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    4. The applicant desirous of listing its securities should satisfy the exchange on the

    following:

    a) No disciplinary action by other stock exchanges and regulatory authorities in past

    three years

    b) Redressal Mechanism of Investor grievancec) Distribution of shareholding

    d) Details of Litigation

    e) Track Record of Director(s) of the Company

    Listing Procedure An Issuer has to take various steps prior to making an application for listing its

    securities on the NSE. These steps are essential to ensure the compliance of certain

    requirements by the Issuer before listing its securities on the NSE. The various

    steps to be taken include:

    Approval of Memorandum and Articles of Association Approval of draft prospectus

    Submission of Application

    Listing conditions and requirements

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    Listing Fees

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    TRADING The NSE trading system called 'National Exchange for Automated Trading'

    (NEAT)

    Circuit BreakersThe Exchange has implemented index-based market-wide circuit breakers incompulsory rolling settlement with effect from July 02, 2001.

    The market-wide circuit breakers are triggered by movement of either the BSE Sensexor the NSE S&P CNX Nifty, whichever is breached earlier.

    In case of a 10% movement of either of these indices, there would be a one-hourmarket halt if the movement takes place before 1:00 p.m. In case the movementtakes place at or after 1:00 p.m. but before 2:30 p.m. there would be trading haltfor hour. In case movement takes place at or after 2:30 p.m. there will be notrading halt at the 10% level and market shall continue trading.

    In case of a 15% movement of either index, there shall be a two-hour halt if themovement takes place before 1 p.m. If the 15% trigger is reached on or after

    1:00p.m. but before 2:00 p.m., there shall be a one-hour halt. If the 15% trigger isreached on or after 2:00 p.m. the trading shall halt for remainder of the day.

    In case of a 20% movement of the index, trading shall be halted for the remainderof the day.

    Apart from circuit breakers, price bands are also used.

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    Locations

    NSE trading terminals are present in various cities and towns all over India.

    NSE uses sophisticated telecommunication technology through which members

    can trade remotely from their offices located in any part of the country.

    Computer to Computer Link (CTCL) facility

    NSE offers Computer-to-Computer Link (CTCL) facility to its trading members

    by which members can use their own trading front-end software in order to trade

    on the NSE trading system.

    Trading Hours

    NSE's normal trading sessions are conducted from 9:15 am India Time to 3:30 pm

    India Time on all days of the week except Saturdays, Sundays and Official

    Holidays declared by the Exchange (or by the Government of India) in advance.

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    CLEARING & SETTLEMENT (EQUITIES)

    Clearing is the process of determination of obligations, after which the obligations

    are discharged by settlement.

    NSCCL has two categories of clearing members:

    1. Trading Clearing Members: Trading members can trade on a proprietary basis or

    trade for their clients. All proprietary trades become the members obligation for

    settlement.

    2. Custodians: Custodians are clearing members but not trading members. They settle

    trades on behalf of their clients that are executed through other trading members.

    Some of the custodians empanelled with NSCCL areAxis Bank Ltd., Citibank N.A.,

    Deutsche Bank A.G., ICICI Bank Ltd.

    Settlement Cycle

    NSCCL follows a T+2 rolling settlement cycle. For all trades executed on the T day,

    NSCCL determines the cumulative obligations of each member on the T+1 day and

    electronically transfers the data to Clearing Members (CMs). All trades concluded

    during a particular trading date are settled on a designated settlement day i.e. T+2 day.

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    BONDS

    To make a large purchase, a firm can borrow

    the funds from a bank, but it can also issue a

    bond.

    A bond is a document that formally promises

    to pay back a loan under specified terms and a

    given period of time.

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    Equity vs. Debt

    To start a new business, a company can raise

    money in two ways - by selling shares of equity or by

    incurring debt. If the owner invested all their own

    savings to buy the materials necessary to start thebusiness, they made an equity investment in the

    company. Equity is simply ownership of a

    corporation. Typically, ownership units in a

    corporation are referred to as stock.

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    However, if our owner did not have necessary funds

    to start their own business they could finance their

    operation in one of two ways:

    1. Issue stock (or certificates of partial ownership in

    his company) to people who may be interested in

    helping their venture out in return for a proportionalshare of the profits that the company might

    generate.

    2. Borrow money that will need to be paid back with

    interest.

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    Initial Public Offerings (IPOs)

    The very first sale of stocks to the public is called an initial

    public offering (IPO), It is the selling of securities to the public

    in the primary market. It is when an unlisted company makes

    either a fresh issue of securities or an offer for sale of its

    existing securities or both for the first time to the public. Thispaves way for listing and trading of the issuer's securities. The

    sale of securities can be either through book building or

    through normal public issue.

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    Derivatives

    The Derivatives section provides you with an insight into the derivatives segment of NSEwith Current Market Reports, Historical Data and Product Information. Real-time quotesand information regarding derivative products, trading systems & processes, clearingand settlement, risk management, statistics etc. are available here.

    Equity Derivatives

    Currency Derivatives

    Interest Rate Futures

    Global Indices

    Debt

    The Debt section provides you with an insight into the debt segment of NSE with CurrentMarket Reports, Historical Data and Product Information. Large investors and a highaverage trade value characterize this segment. Till recently, the market was purely aninformal market with most of the trades directly negotiated and struck between various

    participants. The commencement of this segment by NSE has brought abouttransparency and efficiency to the debt market.

    Retail Debt Market

    Wholesale Debt Market

    Corporate Bonds

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    NSE has launched several stock

    indices, including

    S&P CNX Nifty (Standard & Poor's CRISIL

    NSE Index)

    CNX Nifty Junior

    CNX 100 (= S&P CNX Nifty + CNX Nifty Junior)

    S&P CNX 500 (= CNX 100 + 400 major players

    across 72 industries)

    CNX Midcap (introduced on 18 July 2005replacing CNX Midcap 200)

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    S&P CNX Nifty

    S&P CNX Nifty is a well diversified 50 stock index accounting for 23 sectors of the

    economy. It is used for a variety of purposes such as benchmarking fund portfolios,

    index based derivatives and index funds.

    S&P CNX Nifty is owned and managed by India Index Services and Products Ltd.

    (IISL), which is a joint venture between NSE and CRISIL. IISL has a Marketing

    and licensing agreement with Standard & Poor's (S&P), who are world leaders inindex services.

    FACTS:

    The total traded value for the last six months of all Nifty stocks is approximately

    48% of the traded value of all stocks on the NSE.

    Nifty stocks represent about 56% of the Free Float Market Capitalization as on Sep30, 2010.

    Impact cost of the S&P CNX Nifty for a portfolio size of Rs.50 lakhs is 0.06%.

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    CNX Nifty Junior

    The next rung of liquid securities after S&P CNX Nifty is the CNX NiftyJunior. We can say that the S&P CNX Nifty and the CNX Nifty Junior as

    making up the 100 most liquid stocks in India.

    As with the S&P CNX Nifty, stocks in the CNX Nifty Junior are filtered for

    liquidity, so they are the most liquid of the stocks excluded from the S&P

    CNX Nifty.

    S&P CNX Nifty and the CNX Nifty Junior are synchronized so that the two

    indices will always be disjoint sets; i.e. a stock will never appear in both

    indices at the same time.

    FACTS :

    CNX Nifty Junior represents about 11 % of the Free Float MarketCapitalization as on Sep 30, 2010.

    The traded value for the last six months of all Junior Nifty stocks is

    approximately 14% of the traded value of all stocks on the NSE

    Impact cost for CNX Nifty Junior for a portfolio size of Rs.25 lakhs is 0.09%.

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    CNX 100

    CNX 100 is a diversified 100 stock index accounting for 35 sectors of the economy.

    CNX 100 = S&P CNX Nifty + CNX Nifty Junior

    CNX 100 is owned and managed by India Index Services & Products Ltd. (IISL).

    Which is a joint venture between CRISIL & NSE. IISL is Indias first specialized

    company focused upon the index as a core products.

    FACTS:

    CNX 100 represents about 67% of the Free Float market capitalization as on Sep

    30, 2010.

    The average traded value for the last six months of all CNX100 stocks is

    approximately 61 % of the traded value of all stocks on the NSE.

    Impact cost for CNX 100 for a portfolio size of Rs. 50 Lakhs is 0.07%.

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    S&P CNX 500

    The S&P CNX 500 is Indias first broad based benchmark of the Indian capital

    market.

    S&P CNX 500 = CNX 100 + 400 major players across 72 industries

    Industry weightages in the index reflect the industry weightages in the market. For

    e.g. if the banking sector has a 5% weightage in the universe of stocks traded on

    NSE, banking stocks in the index would also have an approx. representation of 5%in the index.

    FACTS:

    The S&P CNX 500 represents about 90% of the Free Float Market Capitalization

    and about 87% of the total turnover on the NSE as on Sept 30, 2010.

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    CNX Midcap

    The primary objective of the CNX Midcap Index is to capture the movement and be

    a benchmark of the midcap segment of the market.

    The CNX Midcap Index has a base date of Jan 1, 2003 and a base value of 1000.

    All constituents of the CNX Midcap Index must have a minimum listing record of 6

    months.

    All companies in the CNX Midcap Index have a minimum track record of threeyears of operations with a positive net worth.

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    33

    CERTIFICATIONS

    NSE also conducts online examination and awards

    certification, under its programmes of NSE's Certification

    in Financial Markets (NCFM).

    Currently, certifications are available in 19 modules,

    covering different sectors of financial and capital

    markets. Branches of the NSE are located throughout

    India.

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    34

    ADVANTAGES OF TRADING AT NSE

    Integrated network for trading in stock market

    of India

    Fully automated screen based system that

    provides higher degree of transparency

    Investors can transact from any part of the

    country at uniform prices

    Greater functional efficiency supported by

    totally computerized network

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    Bull & Bear Markets

    Bull Markets

    bull markets are movements in the stock

    market in which prices are rising and the

    consensus is that prices will continue moving

    upward. During this time, economic

    production is high, jobs are plentiful and

    inflation is low.

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    Bear Markets

    Bear markets are the opposite--stock prices arefalling, and the view is that they will continue falling.

    The economy will slow down, coupled with a rise in

    unemployment and inflation. In either scenario,

    people invest as though the trend will continue.Investors who think and act as though the market

    will continue to rise are bullish, while those who

    think it will keep falling are bearish.

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    37

    QUICK FACTS ABOUT NSE

    Ranks 04th in the world, in terms of number oftransactions executed on a stock exchange, after

    NASDAQ, NYSE and Shanghai SE.

    Ranks 2nd in the world, in terms of the number of

    contracts traded in Single Stock Futures.

    Ranks 03rd in the world, in terms of no. of contracts

    traded, in Stock index Futures

    Ranks 2nd in Asia, in terms of no. of contractstraded, in equity derivatives instrument.

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    38

    REQUIREMENT

    DEMAT ACCOUNT

    &

    Trading Account

    Companies

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    How are the NIFTY 50 Stocks

    are selected?

    Listing History

    Trading Frequency

    Rank based on the Market Cap

    Market Capitalization weight

    Industry / sector they belong

    Historical Record

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    Seven ways to survive a Stock Market Correction

    1. Stop Listening To Analysts

    2. Stop Staring At Your Portfolio Every Thirty

    Minutes.

    3. Be Patient4. Speak To Actual Investors With Experience

    5. Stop Following Crazy Tips

    6. Understand Market Cycles

    7. Follow The Guru

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    Bibliography:

    NSE web site

    Wikipedia

    Yahoo answer

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