Professional Documents
Culture Documents
Presented By:
Priti Kopade M-3023
Bhagyashree Powale M-3039
Ankita Sawant M-3046
Nikhat Shaikh M-3048
Pranoti Shinde M-3053
Contents
Introduction
Bse and Nse Indices
INTRODUCTION: t
k
oc ket?
S ar
?
Their usefulness:
ü Indices help to recognize broad trends in the market.
ü The investor can use the indices to allocate the funds
rationally among the stocks.
ü Technical analysts use these indices to predict the future
market.
ü Indices function as a status report on the general
economy.
ü
Determinants of a Stock Index
Liquidity
Diversification
Optimum Size
Market Capitalization
Averaging
BOMBAY STOCK EXCHANGE BSE
Bombay Stock Exchange is the oldest stock exchange
in Asia with a rich heritage of over 133 years of
existence.
BSE is the first stock exchange in the country which
M - 3023
6 Signals of stock price
increase
1. RISE IN EARNINGS
If a company earns 100 Rs.per share for the
past 2 years & its earning are know 120 Rs. per share i.e
a 20% increase , consider is increase as positive.
As the saying goes , “Earnings drive the market.”
5. Powerful Demographics
If a company generates lots of profit
from the teenage market and market is going to
expand.
6.
Low P/E Relative to Industry or Market
If the industry P/E ratio is 20 and you
are looking at a stock that has a P/E of 15, all
things being equal, that great.
The company has room for growth, and you have a
good value.
The Trend is your
Friend
HERO HONDA MOTOR LTD
INDIA
Market capitalisation *
USD million
31-3-1996 31-3-2000
31-3-2005
Change In Price
3 months
1 year
Intra day
BHAGYASHREE S. POWALE
SYBMS
ROLL NO. M-3039
Definition
Determining Share Prices
Present Value of Growth Opportunities
(PVGO)
Other related measures
Two analytical models
EFFECTS OF STOCK MARKET ON
INDIAN ECONOMY
n Wealth effect
n
n Effect on pension
n
n Investment
n
n Raising funds for companies
EFFECT ON COMPANIES
n Difficult to issue share rights
n
n Firm is trying to take over
n
n A collapsing share price is often a reflection
of badly performing firm
STOCK MARKET ON JANUARY
2008
n Already since the start of the year the FTSE-100 has fallen 7%.
Yesterday, the stock market fell 3% of 190 points on fears
related to the growing credit crunch. In particular, American bank
Citibank wrote off $18billion from its mortgage defaults. It hopes
this will draw a line under the losses in the derivatives market.
n
n Although, mortgage defaults in the UK are not such a problem in
the UK. The UK is been squeezed by the shortage of capital as
investors are unwilling to risk purchasing any ’subprime’ related
debt. This has caused the cost of borrowing to increase, it
means that mortgage costs have increased despite the cut in
interest rates.
n
FACTORS THAT WILL AFFECT THE
STOCK MARKET IN THE CURRENT
YEAR
n Slow down in growth
n
n Cut in interest rates
n
n Credit crisis
n
n
CURRENT BSE INDICES
BSE AUTO 6850.00 29.71
BANKEX 9583.75 17.08
BANKNIFTY 8504.55 8.40
CAPITAL GOODS 13165.67 0.97
CONSUMER 3957.17 52.56
DURABLES
BSE FMCG 2746.09 2.64
BSE HEALTH 4830.08 31.35
BSE
CAREIT 5160.63 1.38
BSE METALS 16015.03 14.19
OIL& GAS 9593.95 0.80
BSE PSU 9131.91 11.56
BSE TECK 3165.86 8.86
BSE SMALL CAP 7994.98 48.92
BSE MID CAP 6330.23 26.30