Vous êtes sur la page 1sur 33

?

 

Stock markets refer to a market place where investors can buy and sell stocks. The
price at which each buying and selling transaction takes is determined by the market forces
i.e. Demand and supply for a particular stock.

Let us take an example for a better understanding of how market forces determine
stock prices. ABC Co. Ltd. enjoys high investor confidence and there is an anticipation of
an upward movement in its stock price. More and more people would want to buy this stock
(i.e. high demand) and very few people will want to sell this stock at current market price
(i.e. less supply). Therefore, buyers will have to bid a higher price for this stock to match
the ask price from the seller which will increase the stock price of ABC Co. Ltd. On the
contrary, if there are more sellers than buyers (i.e. high supply and low demand) for the
stock of ABC Co. Ltd. in the market, its price will fall down.

In earlier times, buyers and sellers used to assemble at stock exchanges to make
a transaction but now with the dawn of IT, most of the operations are done electronically
and the stock markets have become almost paperless. Now investor¶s don¶t have to gather
at the Exchanges, and can trade freely from their home or office over the phone or through
Internet.

c 

G
    

Wall Street was built in 1644, on the lower end of Manhattan "Island" by the Dutch to
protect against British attacks.
The world's foremost marketplace New York Stock Exchange (NYSE), started its trading
under a tree (now known as 68 Wall Street) over 200 years ago

People who know nothing of high finance still recognize the name "Wall Street."
Even if they do not know anything about business or the city of New York, they know that is
where the big money lives. Today the term is used to signify any financial interests of the
United States, but in the late 18th century it meant the place where all stocks and securities
in the country were bought and sold.

Surprisingly enough, the street is called "Wall Street" because once it ran
alongside a wall. During the 17th century, the wall marked the northern boundary of the
New Amsterdam settlement constructed in 1652 of timber and earthwork. The wall was
supposed to serve as defense against the Indians, New England colonists, and the British,
but was never tested in battle. The British dismantled the wall in 1699

c 

 
  ?     

One of the oldest stock markets in Asia, the Indian Stock Markets have a 200 years
old history.

Y   

East India Company was the dominant institution and by end of the century, business in its
loan securities gained full momentum

Y  Business on corporate stocks and shares in Bank and Cotton presses started in
Bombay. Trading list by the end of 1839 got broader

Y Recognition from banks and merchants to about half a dozen brokers

Y  Rapid development of commercial enterprise saw brokerage business attracting
more people into the business

Y The number of brokers increased to 60

Y YThe American Civil War broke out which caused a stoppage of cotton supply from
United States of America; marking the beginning of the "Share Mania" in India

Y - The number of brokers increased to about 200 to 250

Y - A disastrous slump began at the end of the American Civil War (as an example,
Bank of Bombay Share which had touched Rs. 2850 could only be sold at Rs.87)





c 


 ?       
 
  
   
 

Y  With the rapidly developing share trading business, brokers used to gather at a
street (now well known as "Dalai Street") for the purpose of transacting business.

Y  "The Native Share and Stock Brokers' Association" (also known as "The Bombay
Stock Exchange") was established in Bombay

Y Development of cotton mills industry and set up of many others

Y Establishment of "The Ahmadabad Share and Stock Brokers' Association"

Y  Sharp increase in share prices of jute industries in 1870's was followed by a
boom in tea stocks and coal

Y  "The Calcutta Stock Exchange Association" was formed

Y  Madras witnessed boom and business at "The Madras Stock Exchange" was
transacted with 100 brokers.

Y When recession followed, number of brokers came down to 3 and the Exchange was
closed down
Y Establishment of the Lahore Stock Exchange

Y Merger of the Lahore Stock Exchange with the Punjab Stock Exchange

Y Re-organization and set up of the Madras Stock Exchange Limited (Pvt.) Limited led
by improvement in stock market activities in South India with establishment of new textile

c 

mills and plantation companies

Y  Uttar Pradesh Stock Exchange Limited and Nagpur Stock Exchange Limited was
established

Y Establishment of "The Hyderabad Stock Exchange Limited"

Y  "Delhi Stock and Share Brokers' Association Limited" and "The Delhi Stocks and
Shares Exchange Limited" were established and later on merged into "The Delhi Stock
Exchange Association Limited"










c  

?       

The depression witnessed after the Independence led to closure of a lot of


exchanges in the country. Lahore E-stock Exchange was closed down after the partition of
India, and later on merged with the Delhi Stock Exchange. Bangalore Stock Exchange
Limited was registered in 1957 and got recognition only by 1963. Most of the other
Exchanges were in a miserable state till 1957 when they applied for recognition under
Securities Contracts (Regulations) Act, 1956. The Exchanges that were recognized under
the Act were:

1. Bombay
2. Calcutta
3. Madras
4. Ahmadabad
5. Delhi
6. Hyderabad
7. Bangalore
8. Indore
Many more stock exchanges were established during 1980's, namely:

’ Cochin Stock Exchange (1980)


’ Uttar Pradesh Stock Exchange Association Limited (at Kanpur, 1982)
’ Pune Stock Exchange Limited (1982)
’ Ludhiana Stock Exchange Association Limited (1983)
’ Gauhati Stock Exchange Limited (1984)
’ Kanara Stock Exchange Limited (at Mangalore, 1985)
’ Magadha Stock Exchange Association (at Patna, 1986)
’ Jaipur Stock Exchange Limited (1989)
’ Bhubaneswar Stock Exchange Association Limited (1989)
’ Saurashtra Kutch Stock Exchange Limited (at Rajkot, 1989)
’ Vadodara Stock Exchange Limited (at Baroda, 1990)
’ Coimbatore Stock Exchange

c 


’ Meerut Stock Exchange
At present, there are twenty one recognized stock exchanges in India which does
not include the Over the Counter Exchange of India Limited (OTCEI) and the National
Stock Exchange of the India Limited (NSEIL).

Government policies during 1980's also played a vital role in the development of
the Indian Stock Markets. There was a sharp increase in number of Exchanges, listed
companies as well as their capital, which is visible from the following table:

  Y    Y  Y Y Y Y Y  Y  Y  Y Y Y 


1 No. of Stock Exchanges 7 7 8 8 9 14 20 22
2 No. of Listed Cos. 1125 1203 1599 1552 2265 4344 6229 8593
No. of Stock Issues of Listed
3 1506 2111 2838 3230 3697 6174 8967 11784
Cos.
Capital of Listed Cos. (Cr.
4 270 753 1812 2614 3973 9723 32041 59583
Rs.)
Market value of Capital of
5 971 1292 2675 3273 6750 25302 110279 478121
Listed Cos. (Cr. Rs.)
Capital per Listed Cos. (4/2)
6 24 63 113 168 175 224 514 693
(Lakh Rs.)
Market Value of Capital per
7 86 107 167 211 298 582 1770 5564
Listed Cos. (Lakh Rs.) (5/2)
Appreciated value of Capital
8 358 170 148 126 170 260 344 803
per Listed Cos. (Lakh Rs.)









c  


?      
With over 20 million shareholders, India has the   largest investor base in
the world after the USA and Japan. Over
 companies are listed on the stock
exchanges, which are serviced by approximately 7,500 stockbrokers. The Indian
capital market is significant in terms of the degree of development, volume of trading
and its tremendous growth potential.

!"    
Source: ETIG, August 2007

  
 #$ %"" &
1 USA 17,923
2 Japan 4,615
3 United Kingdom 3,722
4 China 3,059
5 France 2,653
6 Hong Kong 2,180
7 Germany 1,976
8 Canada 1,620
9 Switzerland 1,207
10 ?  1,090

Bombay Stock Exchange (' (), one of the "  in the world, accounts for the
largest number of listed companies and has also started a screen-based trading
system with the introduction of the Bombay On-Line Trading system.

There are 23 recognized stock exchanges in India, including the Over the
Counter Exchange of India (OTCEI) for small and new companies and the National
Stock Exchange (NSE) which was set up as a model exchange to provide nation-wide

c  

services to investors. NSE, which in the recent past has accounted for the largest
trading volumes, has a fully automated screen based system that operates in the
wholesale debt market segment as well as the capital market segment.

India's market capitalization was amongst the highest among the emerging
markets. Total market capitalization of the BSE as on July 31, 1997 was Rs 5,573.07
billion growing by 18 percent over a period of twelve months and as of August 2007
was over %Y "" # )"  &

India has emerged as the "* Y  "  +


   after it added
several companies to the billion dollar club in terms of capitalization, taking the total to
81 companies. India has become the third largest Asian market (excluding Japan and
Australia) after having toppled Korea, China and Singapore that have 80, 50 and 47
firms with billion-dollar market capitalization respectively. India is also inching closer to
outpacing Taiwan that has 84 such companies but lags far behind Hong Kong which
has 107, the highest in Asia.














c  

     ?    
Indian Stock Exchanges allow trading of securities of only those public limited
companies that are listed on the Exchange(s). They are divided into two categories:




c 


    
The flowchart below describes the types of transactions that can be carried out on
the Indian stock exchanges:

Indian stock exchange allows a member broker to perform following activities:

’ Act as an agent,
’ Buy and sell securities for his clients and charge commission for the same,
’ Act as a trader or dealer as a principal,
’ Buy and sell securities on his own account and risk.





c 

 )"   (,   
’ ) "   
The stock exchange provides companies with the facility to raise capital for expansion
through selling shares to the investing public.
’ "-      
When people draw their savings and invest in shares, it leads to a more rational allocation
of resources because funds, which could have been consumed, or kept in idle deposits
with banks are mobilized and redirected to promote business activity with benefits for
several economic growth and higher productivity levels.
’ ´" 
  
Companies view acquisitions as an opportunity to expand product lines, increase
distribution channels, hedge against volatility, increase its market share, or acquire other
necessary business assets. A takeover bid or a merger agreement through the stock
market is one of the simplest and most common ways to company growing by
acquisition or fusion.
’ )    " 
By giving a wide spectrum of people a chance to buy shares and therefore become
part-owners (shareholders) of profitable enterprises the stock market helps to reduce
large income inequalities .Both casual and professional stock investors through stock price
rise and dividends get a chance to share in the profits of promising business that were set
up by other people.
’      
By having a wide and varied scope of owners , companies generally tend to improve on
their management standards and efficiency in order to satisfy the demands of these
shareholders and the more stringent rules for public corporations by public stock
exchange and the government . Consequently , it is alleged that public companies
(companies that are owned by shareholders who are members of the general public and
trade shares on public exchange) tend to have better management records than
privately-held companies (those companies where shares are not publicly traded ,often
owned by the company founders and / or their families and heirs , or otherwise by a small
group of investors) . However, some well-documented cases are known where it is alleged

c 

that there has been considerable slippage in corporate governance on the part of some
public companies.
’         ""  
As opposed to their businesses that require huge capital outlay, investing in shares is open
to both the large and small stock investors because a person buys the number of shares
they can afford. Therefore the Stock Exchange provides an extra source of income to small
savers.
’ X    "   " . 
Governments at various levels may decide to borrow money in order to finance
infrastructure projects such as sewage and water treatment works or housing estates by
selling another category of securities known as bonds .These bonds can be raised through
the Stock Exchange whereby members of the public buy them , thus loaning money to the
government . The issuance of such municipal bonds can obviate the need to directly tax the
citizens in order to finance development, although by securing such bonds with the full faith
and credit of the government instead of with collateral, the result is that the government
must tax the citizens or otherwise raise additional funds to make any regular coupon
payments and refund the principal when the bonds mature.
’ '      

At the stock exchange, share prices rise and fall depending, largely, on market forces.
Share prices rise tend to rise or remain stable when companies and the economy in
general show signs of stability and growth .An economic recession, depression, or financial
crisis could eventually lead to a stock market crash. Therefore the movement of the general
tends in the economy .The listing requirements are the set of conditions imposed by a
given stock exchange upon companies that want to be listed on that exchange .Such
conditions sometimes include minimum number of shares outstanding, minimum market
capitalization, and minimum annual income.

c 

   ´  " 

Financial Markets are essential for fund raising. Through Financial Market borrowers
can find suitable lenders. Banks also help in the process of financing by working as
intermediaries. They use the money, which is saved and deposited by a group of people;
for giving loans to another group of people who need it. Generally, banks provide financing
in the form of loans and mortgages. Except banks other intermediaries in the Financial
Market can be Insurance Companies and Mutual Funds. But more complicated
transactions of Financial Market take place in stock exchange. In stock exchange, a
company can buy others' company's shares or can sell own shares to raise funds or they
can buy their own shares existing in the market.

' ´  " 

3 

     3    
 
 

'  of the Financial Market can be individual persons, private companies, public
corporations, government and other local authorities like municipalities. Individual persons
generally take short term or long term mortgage loans from banks to buy any property.
Private Companies take short term or long term loans for expansion of business or for
improvement of the business infrastructure. Public Corporations like railway companies and
postal services also borrow from Financial Market to collect required money. Government
also borrows from Financial Market to bridge the gap between govt. revenue and govt.
spending. Local authorities like municipalities sometimes borrow in their own name and
sometimes govt. borrows in behalf of them from the Financial Market.

î   in the Financial Market are actually the investors. Their invested money is used
to finance the requirements of borrowers. So, there are various types of investments which
generate lending activities. Some of these types of investments are depositing money in
savings bank account, paying premiums to Insurance Companies, investing in shares of
different companies, investing in govt. bonds and investing in pension funds and mutual
funds.

c 

Financial Market is nothing but a tool which is used to raise capital. Just like any other tool,
it can be beneficial and can be harmful too. So, the ultimate outcome solely lies in the
hands of the people who use it to serve their purpose.


  ´  " 
ù 
 /Money Market facilitates short term debt financing and capital.
ù     / Derivatives Market provides instruments which help in
controlling financial risk.
ù ´   (,     / Foreign Exchange Market facilitates the foreign
exchange trading.
ù ?    /Insurance Market helps in relocation of various risks.
ù 
 /Commodity Market organizes trading of commodities.
ù " /Capital Market consists of primary market and secondary market. In
primary market newly issued bonds and stocks are exchanged and in secondary
market buying and selling of already existing bonds and stocks take place. So, the
Capital Market can be divided into Bond Market and Stock Market© 3
  
provides financing by bond issuance and bond trading©     provides
financing by shares or stock issuance and by share trading. As a whole, Capital
Market facilitates raising of capital. J        
 
 
    !

 
 
  
 

c  

In primary markets, new securities are traded for the first time. Companies,
government, or public sector units (PSUs) can issue securities in this market through Initial
public offerings (IPOs), rights issue (for existing companies), and preferential issue. The
process of underwriting or issuing new bonds to investors is done through the help of a
securities dealer. The commission of these dealers is based on the price of the security
offering.

Another name for the primary market is the New Issue Market (NIM) as here securities are
sold for the first time. This also encourages long-term capital investment. The companies in
this market can issue security directly to the investor and earn the money out of it.
Companies new to the market or thinking of expansion usually generate capital for
themselves by issuing securities in this market. The assets sold in the primary market can
only be redeemed by the original holder as a disadvantage.

Contrary to the popular belief that primary market is not for small investors, it can be quite
safe an option for them in the wake of the demat scam in which a big investor showcased
as a small investor and squandered money. Mutual funds investing in IPOs and Follow-up
Public Offers (FPOs) are also being sought after by small investors.

However, the fact remains that most of the trading still occurs in secondary markets. In a
secondary market, securities that are traded have been already offered to public in a
primary market and listed in an exchange, such as the NYSE. The securities that can be
traded in the secondary markets include equity shares, bonds, etc. Trading in this kind of a
market is done through a stock broker.

In order to comply with the regulations laid down by the Sarbanes-Oxley Act, private
secondary markets have been formed. Institutional or accredited investors use these
markets for trading of unregistered and private securities.

c 


    
" 


 
"   ( 
This is the market sentiment shown in the form of Product Life Cycle theory where there
are four stages;
a) ?   - The investor at the starting stage in market cycle is at 
stage seeking that market will grow and they will earn huge profits on share.

b) X     0 At growth stage market cycle ,   and  "" stage where
they are excited and thrill about earning huge profit in market. And the thing is new
for investor they are excited and thrill to make a mark for them.

c) 
   0 In maturity stage the market cycle covers   where the
product which is at peak of its sale the market where investor can earn profit selling

c  

their shares which they bought at lower price. At this stage people prefer to sell to
optimize their profit.

d)  "    0 The decline stage covers  , 

  "
 
    ,
  and "  , 
the marketis atthe verge of decline. "it is a
temporary setback for long term investor but not for short ones. ´  at this stage
there creeps a fear in mind of investor of suffering loss.    the investor is
desperate to earn profit. And they become desperate because of constant decline in
market.   comes when investor doesn¶t earn profit and investor start to
panic and make mistake. And as a result "  creeps in which means
investor start to think that the market aren¶t for them.
And at decline the market gets stable at the stage it is called    
 and
   And that is time where market stables itself from a loss and recollects
itself to growth one. Were the investors once again looking as an opportunity to
invest in market? Then again in   stage it covers 
 "
 
This were the investor once again get hope and little bit of growth brings relief on
face of investors. The market reaches to  stage where they have started it.
That is why it is called   
"  because it is continuous process and never
ending one. And along with these cycles the investor¶s sentiments are attached with
it, at different stage different sentiments are expressed by investor.

c  

 ,´"    )  
Market fluctuations in last 19 years from 1991 ± 2009 and incidence that affected
market to float with reasons.

  ?   
Feb-92 Sensex crosses 3000 mark
Apr-92 Harshad Mehta scam, market falls 570 points.
Oct-99 Sensex touched highest of 5000 points BJP Govt. came into power
Feb-00 InfoTech IT company¶s boom helped the market to rise further
May-04 BJP Govt. lost to congress as a result Sensex dropped
Sensex keeps rising. Following brisk buying by foreign & domestic Funds in
Sep-05
Early trading. Huge investments by FII¶s
Jun-05 Sensex touched 7000 mark
Sensex touched magical figure of 13000 it took 135 days from 12000-
Oct-06
13000
Sep-07 Biggest ever single day Gain of 654 points. Heavy investment of FII¶s
Jan-08 Sensex touched all time high 21078 before closing on 20873
Oct-08 Sensex dropped below ok mark due to global financial indications
Jan-09 Satyam scam results in market dropping.
Mad buying of people because of UPA Govt. winning without any support
May-09
as a result Sensex rising above 20%.

c  

?  ,   (#î   & ' (#î 
  &
 (1 

   
  

 î (+
 î 2)  !   ? 
2) 3 2)3 4  3   ?  ,#4&
ABB 42.38 812.05 -4.1 17194.63 0.51 -0.02
ACC 187.74 831.45 -1.1 15601.19 0.47 -0.01
Ambuja Cement 304.99 117.50 -1.3 17963.91 0.54 -0.01
Axis Bank 407.95 1345.40 -1.2 54806.04 1.64 -0.03
Bharti Airtel 1898.76 306.90 -3.2 116507.91 3.48 -0.11
BHEL 489.52 2438.90 -0.9 119340.08 3.56 -0.04
BPCL 361.54 642.35 0.5 23194.60 0.69 0.00
Cairn India 1897.36 334.95 0.4 63438.23 1.90 0.00
Cipla 160.58 326.60 -0.3 26198.63 0.78 0.00
DLF 339.50 301.30 -2.6 51162.65 1.53 -0.04
GAIL 1268.48 438.20 -3.2 55622.85 1.66 -0.05
HCL Tech 135.76 392.30 3.6 26622.54 0.80 0.03
HDFC 290.99 2981.25 0.2 86722.29 2.59 0.00
HDFC Bank 460.13 2127.45 1.2 97865.05 2.92 0.04
Hero Honda 39.94 1815.40 -3.0 36242.55 1.08 -0.04
Hindalco Ind 191.40 160.30 -0.4 30690.99 0.92 0.00
HUL 218.21 251.10 -2.1 54868.90 1.64 -0.03
ICICI Bank 1115.62 904.45 -2.4 100952.45 3.02 -0.08
Idea Cellular 3300.29 70.25 2.3 23300.05 0.70 0.02
IDFC 1459.80 185.90 -1.9 27144.98 0.81 -0.01
Infosys Tech 286.95 2788.85 -1.6 160026.28 4.78 -0.08
ITC 382.48 308.75 -0.4 118090.70 3.53 -0.02
JP Associates 424.93 118.25 -0.4 25092.12 0.75 0.00
Jindal Stl & Pwr 93.39 623.15 0.1 58130.61 1.74 0.00
KTK Mahin Bnk 349.10 769.25 0.4 26924.34 0.80 0.01
L&T 120.63 1797.10 -1.2 108223.20 3.23 -0.04
M&M 289.22 661.50 2.7 38263.81 1.14 0.03
Maruti Suzuki 144.46 1198.15 0.0 34629.95 1.03 0.00
NTPC 8245.46 198.60 -0.4 163878.52 4.90 -0.02
ONGC 2138.89 1242.55 0.0 265372.08 7.93 -0.04
PNB 315.30 1069.00 1.4 33751.29 1.01 0.01
Pwr Grid Corp 4208.84 100.50 0.2 42256.75 1.26 0.00
Ranbaxy Labs 210.38 449.30 1.6 18921.58 0.57 0.01
Reliance Cap 246.16 783.20 0.1 19287.87 0.58 0.00
Reliance Comm 1032.01 178.45 -1.8 36884.04 1.10 -0.02

c 

Reliance Ind 3271.24 1009.60 -0.1 330280.75 9.87 0.00
Reliance Infra 244.91 1107.75 -2.0 27150.72 0.81 -0.02
Reliance Power 2396.80 163.75 -2.9 39259.58 1.17 -0.03
SAIL 4130.40 203.65 -0.6 84260.16 2.52 -0.01
SBI 634.88 2503.80 1.2 158904.12 4.75 0.06
Siemens 67.43 699.10 -3.1 23581.96 0.70 -0.02
Sterlite Ind 336.08 174.90 -2.2 29381.79 0.88 -0.02
Sun Parma 103.56 1770.70 -0.3 36631.24 1.09 -0.01
Suzlon Energy 349.08 56.50 0.2 9861.51 0.29 0.00
Tata Motors 570.81 846.15 -2.3 48310.50 1.44 -0.03
Tata Power Co 237.31 1319.80 -0.6 31347.46 0.94 -0.01
Tata Steel 887.41 537.15 0.7 47653.92 1.42 0.01
TCS 195.72 841.10 -1.0 164365.66 4.91 -0.06
Unitech 503.57 81.25 -2.0 20432.35 0.61 -0.01
Wipro 489.96 411.35 -1.2 101005.25 3.02 -0.03
"  Y
   

c 

' (1  ,
   
   ?

 î (+
 î 2)  !    
2) 3 2)3 4  3   ?  ,#4&
ACC 187.74 831.45 -1.1 15609.64 0.58 -0.01
Bharti Airtel 1898.76 306.90 -3.2 116545.89 4.34 -0.14
BHEL 489.52 2438.90 -0.9 119389.03 4.45 -0.04
Cipla 160.58 326.60 -0.3 26222.71 0.98 0.00
DLF 339.50 301.30 -2.6 51145.68 1.91 -0.05
HDFC 290.99 2981.25 0.2 86751.39 3.23 0.01
HDFC Bank 460.13 2127.45 1.2 97890.36 3.65 0.04
Hero Honda 39.94 1815.40 -3.0 36253.54 1.35 -0.04
Hindalco Ind 191.40 160.30 -0.4 30681.42 1.14 0.00
HUL 218.21 251.10 -2.1 54792.53 2.04 -0.04
ICICI Bank 1115.62 904.45 -2.4 100902.25 3.76 -0.09
Infosys Tech 286.95 2788.85 -1.6 160052.10 5.96 -0.10
ITC 382.48 308.75 -0.4 118090.70 4.40 -0.02
Jaiprakash Assoc 424.93 118.25 -0.4 25123.99 0.94 0.00
Jindal Stl & Pow 93.39 623.15 0.1 58195.98 2.17 0.00
Larsen & Toubro 120.63 1797.10 -1.2 108392.09 4.04 -0.05
M&M 289.22 661.50 2.7 38263.81 1.43 0.04
Maruti Suzuki 144.46 1198.15 0.0 34616.95 1.29 0.00
NTPC 8245.46 198.60 -0.4 163754.84 6.10 -0.03
ONGC 2138.89 1242.55 0.0 265767.78 9.90 0.00
Reliance Comm 1032.01 178.45 -1.8 36832.44 1.37 -0.02
Reliance Ind 3271.24 1009.60 -0.1 330264.39 12.31 -0.01
Reliance Infra 244.91 1107.75 -2.0 27129.91 1.01 -0.02
SBI 634.88 2503.80 1.2 158961.25 5.92 0.07
Sterlite Ind 336.08 174.90 -2.2 29390.20 1.10 -0.02
Tata Motors 570.81 846.15 -2.3 48299.09 1.80 -0.04
Tata Power Co 237.31 1319.80 -0.6 31320.17 1.17 -0.01
Tata Steel 887.41 537.15 0.7 47667.23 1.78 0.01
TCS 195.72 841.10 -1.0 164620.09 6.13 -0.06
Wipro 489.96 411.35 -1.2 100772.52 3.75 -0.05
"      Y 


c 

 (5 "
    "- 


  
   
     "

5  ""  "- 
î  #)&   
  #)&
#)&
2009-10 1,470 1,359 4,138,024 16,959 6,009,173
2008-09 1,432 1,291 2,752,023 11,325 2,896,194
2007-08 1,381 1,236 3,551,038 14,148 4,858,122
2006-07 1,228 1,084 1,945,285 7,812 3,367,350
2005-06 1,069 929 1,569,556 6,253 2,813,201
2004-05 970 839 1,140,071 4,506 1,585,585
2003-04 909 787 1,099,535 4,328 1,120,976
2002-03 818 788 617,989 2,462 537,133
2001-02 793 890 513,167 2,078 636,861


















c 

?   ?  

' (?     (?   

BSE Sensex NIFTY


BSE 100 Index S&P CNX NIFTY
BSE 200 Index CNX NIFTY JUNIOR
BSE 500 Index CNX IT
BSE MIDCAP Index BANK NIFTY
BSE SMLCAP Index INDIA VIX
BSE Teck Index CNX 100
BSE PSU Index S&P CNX DEFTY
BSE AUTO Index S&P CNX 500
BSE BANKEX CNX MIDCAP
BSE CG Index NIFTY MIDCAP 50
BSE CD Index CNX INFRA
BSE FMCG Index CNX REALTY
BSE HC Index
BSE IT Index
BSE Metal Index
BSE Oil & Gas Index


!" ?  

  (
 6" (  
DOW JONES INDUS. AVG ESTX 50 ¼ Pr NIKKEI 225
S&P 500 INDEX FTSE 100 INDEX HANG SENG INDEX
NASDAQ COMPOSITE INDEX CAC 40 INDEX S&P/ASX 200 INDEX
S&P/TSX COMPOSITE INDEX DAX INDEX
MEXICO IPC INDEX IBEX 35 INDEX
BRAZIL BOVESPA INDEX FTSE MIB INDEX
AEX-Index
OMX STOCKHOLM 30 INDEX
SWISS MARKET INDEX




c 

)   '   ' 

(,    '  ' 


Ahmadabad 325 96
Bangalore 257 158
' (   
Bhubaneswar 213 17
Calcutta 926 84
Cochin 435 43
Coimbatore 135 19
Delhi 375 261
Gauhati 103 4
ICSE 946 3
Jaipur 488 33
Ludhiana 301 36
Madhya Pradesh 174 5
Madras 183 110
 ( Y Y 
OTCEI 713 19
Pune 188 156
UPSE 351 3
Vadodara 312 37
"  Y

 .    ( ' (


ù Equity
ù Futures & Options
ù Retail Debt Market
ù Wholesale Debt Market
ù Currency Debt Market

c  

î    '  ? 

   '  ?     '  ? 
5Paisa Kisan Ratilal Choksey Shares
Advani Share Brokers Kotak Securities
Anand Rathi Securities Manubhai Mangaldas Securities
Angel Broking Moneypore
Brescon Group Navia Markets
CIL Securities Parag Parikh
CRN India Parsoli Corporation
Churiwala Securities Pratibhuti Viniyog
DSP Merrill Lynch Prudential
Dalmia Securities Quantum Securities.
Gandhi Securities Reliance Money
Gogia Capital Services Sivan Securities
Hasmukh Lalbhai Skindia Finance
ICICIDirect Stock Holding Corporation of India
Idafa Investments StockMarkit.com
India Market Access Sunidhi Consultancy
Investsmart India Valia Consultancy

     ' # &




    '  4    


1 Kotak Securities Ltd. 12
2 India Infoline Ltd. 9
3 ICICI Securities Ltd. 8
4 India-Bulls Securities Ltd. 6
5 Geojit Financial Services Ltd. 3
6 HDFC Securities Ltd. 2
7 Others 60
" Y

c 


 "
  '  ? 



  1
     1    '  
 '     '   "
  
Kotak Delivery- www.kotaksecurities.com
Securities 0.30%/Intraday-
1 6 Rs.360 p.a 0.03% Yes
ICICI Direct Delivery-0.40% to www.icicidirect.com
0.85%/Intraday-
2 3 Rs.750 0.10% to 0.425% Yes
India-Bulls Delivery- www.indiabulls.com
Securities 0.50%/Intraday-
3 1 Rs.1200 0.05% Yes
Geojit Delivery-0.10% to www.geojitbnpparibas.com
Financial 0.30%/Intraday-
4 Services 2 Rs.650 0.01% to 0.03% Yes
HDFC Delivery- www.hdfcsec.com
Securities 0.50%/Intraday-
5 Ltd. 1 Rs.799 0.05% Yes
Share khan Delivery- www.sharekhan.com
0.50%/Intraday-
6 2 Rs.350 p.a 0.10% Yes
5Paisa Delivery- www.5paisa.com
0.20%/Intraday-
7 2 Rs.500 0.05% Yes
Angel Delivery- www.angeltrade.com
Broking 0.50%/Intraday-
8 2 Rs.775 0.05% Yes
Standard Delivery-0.30% to www.standardchartered-
Chartered Rs.499/799 0.85%/Intraday- wealthmanager.co.in
9 3 /2499 0.01% to 0.05% Yes
Religare Delivery-0.30% to www.religareonline.com
Rs.299/499 0.50%/Intraday-
10 3 /999 0.03% to 0.05% Yes

c  

´     
There's such an excess of information these days- monthly investment magazines
covering the market, daily investment newspapers doing the same, and minute-by-minute
coverage on News Channels etc,. They're all trying to tell, what's driving the stock market.
Of all the factors that affect the stock market, only two things drive the markets. The Two
E's«
  (7
The first "E" is 

, and it is extremely important. The big question here is
what is the stock price in relation to the company's earnings? That tells, whether a stock is
cheap or expensive. This is what we need to know« and the information is easy to find.
What you need to realize here is that, unless stocks fall by over 50% - or unless earnings
more than double - you don't even need to check in with this number. You know that stocks
are expensive in relation to their earnings, and will be for a while.
The second factor that drives the markets is  
. Emotions are a huge part of
investing. It was earnings that drove the NASDAQ from 1,500 to 5,000, and then back to
1,500, all in four years time? Emotions played a big part in this example.

"
   
Clients of the brokers can open savings, current accounts under specific product
codes. The opening of these accounts may facilitate faster movement of funds between the
broker and client. Considering the overall relationship with the brokers, the savings/ current
accounts are offered with special average quarterly balance requirements. These accounts
are aimed at various participants in the entire value chain viz. Investors, Sub-Brokers,
Franchisees etc.








c  

   
ù All prominent stock broking houses such as India-bulls, Kotak Securities, Reliance
Money and several other local players are expanding their networks. At the same
time, increasing trading on commodity exchanges has also fuelled the growth of the
markets resulting in demand for more manpower. Stock broking houses are likely to
create over 50,000 job opportunities in next one year for various functions.
ù They are also in need of customer relationship managers, dealers and analysts.
Stock brokers are also looking for sophisticated IT professionals to commission and
maintain their offices.
ù Portfolio managers are responsible for making investment decisions for clients with
large sums of money to invest. They need to be well informed about the goals of the
client.
ù Buying and selling securities demands good interpersonal and sales skills and being
well-informed about various investment products.
ù Due to advances in telecommunications and computer technology, the securities
and commodities industry has become highly automated. Consequently, computer
scientists, computer engineers and systems analysts also find employment in the
industry today.

  
ù National Stock Exchange of India Ltd. (NSE) has evolved a testing and certification
mechanism known as the National Stock Exchange's Certification in Financial
Markets (NCFM) which is online and fully automated. It offers all certifications
mandated by Securities and Exchange Board of India (SEBI), IRDA, National
Securities Depository Limited (NSDL), AMFI and the NSE itself. Practical knowledge
and skills are tested in nine securities market related modules. These tests ensure
that a person dealing with financial products has a minimum knowledge of them, the
markets and regulations. Hence it is required that all new employees joining the
intermediaries and all intermediaries joining the market should be certified.
ù The Association of Mutual Funds in India (AMFI) has started the AMFI Mutual Fund
Certification (www.amfiindia.com / testingprogram.html). The AMFI Mutual Fund

c  

(Basic) Module is a general test and the second module is the AMFI Mutual Fund
(Advisors) Module which all fund distributors or intermediaries and Mutual Fund
employees engaged in selling and marketing of mutual fund schemes will be
required to take.
ù BSE Training Institute (BTI), The Stock Exchange, Mumbai offers certification tests
and training programmes.
ù Graduation may not be necessary for becoming a stock broker, but many are
business administration or commerce graduates. Formal educational or training
programme on securities markets is not easily available. This has necessitated the
need for certification.
ù Economics and Commerce postgraduates, CFAs, MBAs in Finance, Chartered
Accountants, Cost and Works Accountants, Company Secretaries and allied
professionals may pursue stock market careers. They may or may not require
certification as mentioned above depending upon the nature of their responsibilities.


  
The future of stock market careers depends immediately and directly on the success
of the economy. When the stock market is riding high, customers play the market and there
are lots of opportunities. When the economy slows down, people get out of the market and
brokers lose their commissions.

c 


)   


As we know Stock Market is unpredictable and very volatile, therefore
this market is very fragile or risky in order to invest the savings i.e., capital or
money of the individual or person. As we had seen there are many scandals
happened due to which market crashes down and therefore recession arises
which leads to downfall of the world economy since stock market is globalised
in nature.
Therefore according to our group¶s recommendation, the right time of
investment is when the market comes down and as we have studied the cycle
of market emotions in this project earlier which shows that the market has the
maximum point of financial opportunity in depression period where as there is
maximum point of financial risk at a peak i.e., Euphoria period as shown in the
cycle of market emotions.

c 


 " 


The stock market is one of the most important sources for companies to raise
money. This allows businesses to be publicly traded, or raise additional capital for
expansion by selling shares of ownership of the company in a public market. The liquidity
that an exchange provides affords investors the ability to quickly and easily sell securities.
This is an attractive feature of investing in stocks, compared to other less liquid investments
such as real estate etc. In this stock market investors have the opportunity to increase their
savings by way of investing in equity or other markets such as Future & Option, Derivative
market, Commodity market etc, Therefore stock market plays a crucial role in an Indian
economy as well as in the global economy of the world.













c 


'"


ù www.nseindia.com
ù www.bseindia.com
ù www.moneycontrol.com
ù www.scribd.com
ù www.chittorgarh.com
ù www.diehardindian.com
ù www.economywatch.com
ù www.indiacatalog.com
ù www.sebi.gov.in
ù www.surfindia.com

c