Stock Exchanges In


India
 Stock Exchanges are an organized
marketplace, either corporation or mutual
 organization, where members of the
organisation gather to trade company stocks
and other securities
 . The members may act either as agents for
their customers, or as principals for their own
accounts.
Stock exchanges also facilitate for the issue
and redemption of securities and other
financial instruments including the payment of
income and dividends.
 List of Stock Exchanges In India
 Bombay Stock Exchange
 National Stock Exchange
 Regional Stock Exchanges
 Ahmedabad Stock Exchange
 Bangalore Stock Exchange
 Bhubaneshwar Stock Exchange
 Calcutta Stock Exchange
 Cochin Stock Exchange
 Coimbatore Stock Exchange
 Delhi Stock Exchange
 Guwahati Stock Exchange
 Hyderabad Stock Exchange
STOCK EXCHANGE ,INTRO
 Jaipur Stock Exchange
 Ludhiana Stock Exchange
 Madhya Pradesh Stock Exchange
 Madras Stock Exchange
 Magadh Stock Exchange
 Mangalore Stock Exchange
 Meerut Stock Exchange
 OTC Exchange Of India
 Pune Stock Exchange
 Saurashtra Kutch Stock Exchange
 Uttar Pradesh Stock Exchange
 Vadodara Stock Exchange
STOCK EXCHANGE,INTRO .

 SENSEX: SENSITIVITY INDEX

Sensex is index of BSE. It has got
30 listed companies.
 NIFTY: NATIONAL FIFTY and it is
the index of NSE. It has got 50
listed companies
STOCK EXCHANGE IN
INDIA.
 NSE recognized as a stock
exchange under the Securities
Contracts (Regulation) Act, 1956 in
April 1993
 STOCK EXCHANGE IN INDIA.
•
Cont..
Promoters
 NSE has been promoted by leading financial institutions, banks, insurance companies
and other financial intermediaries:
 Industrial Development Bank of India Limited
 Industrial Finance Corporation of India Limited
 Life Insurance Corporation of India
 State Bank of India
 ICICI Bank Limited
 IL & FS Trust Company Limited
 Stock Holding Corporation of India Limited
 SBI Capital Markets Limited
 Bank of Baroda
 Canara Bank
 General Insurance Corporation of India
 National Insurance Company Limited
 The New India Assurance Company Limited
 The Oriental Insurance Company Limited
 United India Insurance Company Limited
 Punjab National Bank
 Oriental Bank of Commerce
 Indian Bank
 Union Bank of India
 Infrastructure Development Finance Company Ltd.
 NSE S&P CNX NIFTY
INDEX.
The NSE S&P CNX Nifty 50 index is a well
diversified 50 stock index accounting for 24
sectors of the economy

It is used for a variety of purposes such as

benchmarking fund portfolios, index based
derivatives and index funds.

 owned and managed by India Index Services

and Products Ltd. (IISL), which is a joint venture
between NSE and CRISIL.
NSE Nifty Junior Index

The next rung of liquid securities

after S&P CNX Nifty is the CNX
Nifty Junior index.
The maintenance of the S&P CNX
Nifty and the CNX Nifty Junior are
synchronized so that the two
indexes will always be disjoint sets
NSE CNX 100 Index
 CNX 100 index is a combination of the
S&P CNX Nifty and CNX Nifty Junior.
 Any changes i.e. inclusion and exclusion
of securities in S&P CNX Nifty and CNX
Nifty Junior would be automatically
mirrored in this new index.
 The CNX 100 Index has a base date of
Jan 1, 2003 value of 1000
BSE ,SENSEX

The Sensex is supposed to be an

indicator of the stocks in the BSE
Sensex is calculated taking into
consideration stock prices of 30
different BSE listed companies. It is
calculated using the “free-float
market capitalization” method
Indian Stock Market.
Cont..
Market Capitalization = Current Price
* Number of shares issued by the
company.

 Free float factor* Market

Capitalization =Free Float Market
Capitalization.
METHOD Of CALCULATION
 First: Find out the “free-float market cap” of all the
30 companies that make up the Sensex!
Second: Add all the “free-float market cap’s” of all
the 30 companies!
Third: Make all this relative to the Sensex base.
The value you get is the Sensex value!

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..
METHOD Of CALCULATION

100000 /4000 =150000/?

=150000/100000*4000

•
So, the Sensex value will be 6000 if the
“free-float market cap” comes to
Rs.150,000 Cr!
METHOD Of CALCULATION
So, the Sensex value will be 6000
if the “free-float market
cap” comes to Rs.150,000 Cr!
Please Note: Every time one of the
30 companies has a “stock split” or
a "bonus" etc. appropriate changes
are made in the “market cap”
calculations.
Indian Stock Market.
Cont..
 According the BSE, any shares that DO NOT fall under the
following criteria, can be considered to be open market shares:

 Holdings by founders/directors/ acquirers which has control

element
 Holdings by persons/ bodies with "controlling interest"
 Government holding as promoter/acquirer
 Holdings through the FDI Route
 Strategic stakes by private corporate bodies/ individuals
 Equity held by associate/group companies (cross-holdings)
 Equity held by employee welfare trusts
 Locked-in shares and shares which would not be sold in the
open market in normal course.
BSE, SENSEX cont..
The 30 companies that make up the
Sensex are selected and reviewed from
time to time by an “index committee”.
This “index committee” is made up of
academicians, mutual fund managers,
finance journalists, independent governing
board members and other participants in
the financial markets.
 BSE, SENSEX Cont..
• The main criteria for selecting
the 30 stocks is as follows:
 Market capitalization: The company should have a
market capitalization in the Top 100 market
capitalization’s of the BSE. Also the market
capitalization of each company should be more
than 0.5% of the total market capitalization of the
Index.

Trading frequency: The company to be included
should have been traded on each and every trading
day for the last one year. Exceptions can be made
for extreme reasons like share suspension etc.
BSE, SENSEX Cont..
* Number of trades: The scrip should be among
the top 150 companies listed by average
number of trades per 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.
* Track record: In the opinion of the index
committee, the company should have an
acceptable track record.
•

• Thank you