Introduction to Indian Stock Exchange

History of Indian Stock Exchange

FUNCTION OF STOCK MARKET

ROLE OF STOCK EXCHANGE

Factors Affecting the Indian Stock Exchange

contribution of stock market in Indian economics

Types of Securities Traded in Indian Stock Exchange

Risks and Opportunities of Investing in Indian Stock Exchange

about BSE AND its feature and function

about NSE AND its feature and function

about SEBI AND its feature and function

Trading hours and holidays

Types of securities traded on the exchange

TRADING PRODUCE

Type of trading
Top 25
HDFCBANK
SBIN
RVNL
ITC
RELIANCE INDUSTRY
 Introduction to Indian
Stock Exchange
The Indian Stock Exchange is a crucial part of
the Indian economy, providing a platform for
companies to raise capital and investors to
invest in them.
With over 5,000 listed companies and a
market capitalization of over $2 trillion, the
Indian Stock Exchange is one of the largest
and most vibrant stock markets in the world.
Its importance cannot be overstated as it
serves as a barometer of the Indian economy
and reflects the country's growth prospect
A stock exchange, securities exchange, or
bourse facility where stockbrokers and
traders can buy and sell securities, such as
shares of stock, bonds, and other financial
instruments.
 History of Indian
Stock Exchange
The Indian Stock Exchange has a long and
fascinating history that dates back to the early
19th century. It all began with a group of
brokers who would gather under a banyan tree
in Mumbai to trade shares. Over time, this
informal gathering evolved into a more
formalized system of trading, which
eventually led to the establishment of the
Bombay Stock Exchange (BSE) in 1875.
The BSE was the first stock exchange in Asia
and quickly became a hub for trading stocks,
bonds, and other securities. However, it wasn't
until the 1990s that the Indian government
began to liberalize its economy and open up
the stock market to foreign investors. This led
to the establishment of the National Stock
Exchange (NSE) in 1992, which introduced
electronic trading and helped modernize the
Indian stock market
 FUNCTION OF
STOCK MARKET
The stock market is a crucial component of
any economy, including India's. Its primary
function is to provide a platform for
companies to raise capital by selling shares of
their company to the public. This allows
investors to take ownership in the company
and share in its profits.
In addition to providing capital to companies,
the stock market also serves as an indicator of
the overall health of the economy. When stock
prices are rising, it generally indicates that
investors have confidence in the economy and
are optimistic about its future prospects. On
the other hand, when stock prices are falling, it
can be a sign of economic uncertainty and
instability.
 ROLE OF STOCK
EXCHANGE
The role of the stock exchange is to provide a
platform for companies to raise capital
through the issuance of stocks and bonds. It
also provides investors with a marketplace to
buy and sell these securities, thus facilitating
liquidity in the market.
In addition to this primary function, the stock
exchange also serves as an indicator of the
overall health of the economy. A bullish
market indicates optimism and growth, while a
bearish market signals caution and potential
contraction.
A market for securities where a wholesome
market where securities of government,
corporate companies, semi- government
companies are bought and sold.
 Factors Affecting the
Indian Stock Exchange
The Indian Stock Exchange is a complex
system that is influenced by a variety of
factors. Economic policies, such as interest
rates and inflation, can have a significant
impact on the stock market. Global events,
such as wars or natural disasters, can also
affect the market. Additionally, investor
sentiment plays a crucial role in determining
the direction of the stock market.
Investors' confidence in the economy can lead
to increased buying activity, driving up prices.
Conversely, if investors are pessimistic about
the future of the economy, they may sell their
shares, causing prices to drop. It is important
to note that these factors are interrelated and
can often have a domino effect on each other.
 contribution of stock
market in Indian economics
The Indian Stock Exchange has played
a significant role in the growth and
development of the Indian economy. It
provides companies with access to
capital, which they can use for
expansion and investment. This, in turn,
creates job opportunities and boosts
economic growth.
Additionally, the stock market allows
investors to earn returns on their
investments, which encourages savings
and investment in the economy. The
stock market also acts as an indicator of
the overall health of the economy,
reflecting the performance of different
sectors and industries.
 Types of Securities Traded
in Indian Stock Exchange
The Indian Stock Exchange offers a wide
range of securities for investors to trade. These
securities include stocks, bonds, and
derivatives. Stocks are ownership shares in a
company and represent a portion of its assets
and earnings. Bonds, on the other hand, are
debt securities that represent a loan made by
an investor to a borrower, such as a
corporation or government. Derivatives are
financial instruments that derive their value
from an underlying asset, such as a stock or
commodity.
Stocks are the most commonly traded
securities on the Indian Stock Exchange. They
can be further classified into large-cap, mid-
cap, and small-cap stocks based on the market
capitalization of the issuing company. Bonds
are also popular among investors, especially
those looking for a fixed income stream.
 Risks and Opportunities of
Investing in Indian Stock
Exchange
Investing in the Indian Stock Exchange can be
both risky and rewarding. On one hand, there
is the potential for high returns on investment,
but on the other hand, there is also the risk of
losing money. It is important to carefully
consider your investment options and do your
research before making any decisions.
One major opportunity of investing in the
Indian Stock Exchange is the country's rapidly
growing economy, which presents numerous
opportunities for companies to expand and
increase their profits. However, there are also
risks such as market volatility and political
instability that can affect the value of
investments. It is essential to stay informed
and vigilant to mitigate these risks
 about BSE AND its
feature and function
The Bombay Stock Exchange (BSE) is the
oldest stock exchange in Asia and was
established in 1875. It is located in Mumbai,
India and is also known as the BSE Limited.
The BSE has played an important role in the
development of the Indian capital market and
has been instrumental in shaping the country's
financial landscape.
The BSE has several key features and
functions that make it a vital part of the Indian
economy. One of its main features is the
Sensex, which is an index that tracks the
performance of the top 30 companies listed on
the BSE. The BSE also offers a range of
trading services, including equities,
derivatives, mutual funds, and debt
instruments. In addition, the BSE has a strong
regulatory framework that ensures
transparency and fairness in all transactions.
 about SEBI AND its
feature and function
The Securities and Exchange Board of India
(SEBI) is the regulatory body that oversees the
Indian securities market. It was established in
1988 to protect the interests of investors and
promote the development of the securities
market. SEBI's main functions include
regulating stock exchanges, registering and
regulating brokers and other intermediaries,
and preventing insider trading and other
fraudulent activities.
SEBI has introduced several measures to
improve the transparency and efficiency of the
Indian securities market. For example, it has
mandated the use of dematerialized shares,
which has reduced the time and cost involved
in share transfers. SEBI has also implemented
strict disclosure requirements for listed
companies, which has increased the amount of
information available to investors.
 Trading hours and
holidays
The Indian Stock Exchange operates from
Monday to Friday, with trading hours starting
at 9:15 AM and ending at 3:30 PM. During
these hours, investors can buy and sell
securities on the exchange.
However, it is important to note that the Indian
Stock Exchange observes a number of
holidays throughout the year, including
national holidays such as Independence Day
and religious festivals such as Diwali. On
these days, the exchange is closed and no
trading takes place.
There are
 Type of trading
 Intraday Trading
Intraday trading, also known as day trading, is
a type of trading where the trader buys and
sells securities within the same trading day. In
other words, the trader does not hold any
positions overnight. This type of trading
requires a high level of expertise and
discipline as the trader has to make quick
decisions based on market trends and news.
Intraday trading is popular in the Indian stock
market due to its potential for high returns.
However, intraday trading comes with its own
set of risks. The market is highly volatile and
can change direction quickly, resulting in
losses for the trader. It is important for the
trader to have a solid understanding of
technical analysis and risk management
strategies. Successful intraday traders often
use stop-loss orders to limit their losses and
take-profit orders to lock in profits
  scalping Trading
Scalping trading is a type of short-term trading
strategy that involves making multiple trades
throughout the day to profit from small price
movements. Traders who use this strategy
typically hold positions for just a few minutes
or seconds, and aim to make small profits on
each trade.
While scalping can be a profitable trading
strategy, it requires a lot of discipline and
focus. Traders must be able to make quick
decisions based on market conditions, and
must be able to handle the stress of making
multiple trades in a short amount of time.

 Futures and Options Trading

Futures and options trading is a type of trading
in the Indian stock market that involves
buying or selling contracts for the future
delivery of a specific asset at a predetermined
price. These contracts can be used to hedge
against price movements or to speculate on
future price changes.
One of the main benefits of futures and
options trading is leverage, which allows
traders to control large amounts of assets with
relatively small amounts of capital. However,
this also means that losses can be magnified if
the trade goes against the trader. It's important
to have a solid understanding of the
underlying asset and market conditions before
engaging in futures and options trading.
Successful futures and options trading requires
a combination of technical analysis,
fundamental analysis, and risk management.
Traders need to be able to analyzing market
trends and make informed decisions based on
their analysis. They also need to have a plan
for managing risk, including setting stop-loss
orders and using position sizing to limit
exposure.
Overall, futures and options trading can be a
powerful tool for experienced traders who are
willing to put in the time and effort to develop
their skills and knowledge.

 forex Trading
Forex trading, also known as foreign exchange
trading, involves buying and selling currencies
in order to make a profit. It is the largest
financial market in the world, with trillions of
dollars traded every day.
In forex trading, traders can take advantage of
fluctuations in currency values to make a
profit. For example, if a trader believes that
the value of the US dollar will increase
relative to the euro, they can buy dollars and
sell euros. If their prediction is correct, they
can sell the dollars later at a higher price and
make a profit.
 Trading producer
The prices of shares on a stock market
can be set in a number of ways, but
most the most common way is through
an auction process where buyers and
sellers place bids and offers to buy or
sell. A bid is the price at which
somebody wishes to buy, and an offer
(or ask) is the price at which somebody
wishes to sell. When the bid and ask
coincide, a trade is made.
The overall market is made up of
millions of investors and traders, who
may have differing ideas about the
value of a specific stock and thus the
price at which they are willing to buy or
sell it. The thousands of transactions
that occur as these investors and
traders convert their intentions to
actions by buying and/or selling a stock
cause minute-by- minute gyrations in it
over the course of a trading day. A
stock exchange provides a platform
where such trading can be easily
conducted by matching buyers and
sellers of stocks. For the average
person to get access to these
exchanges, they would need a
stockbroker. This stockbroker acts as
the middleman between the buyer and
the seller. Getting a stockbroker is
most commonly accomplished by
creating an account with a well
established retail broker
 terminologies
Buy: Means to but share or take
position in a company.
Sell: Getting rid of the shares as you
have achieved your goal of wanting to
cut down losses.
Ask: Ask is what people who are
looking to sell their stocks are looking
to get for their shares
Bid: Bid is what for stock. you are
willing to pay for stock
Bull: A market condition where
investors are expecting prices to rise
Bear: A market condition where
investors are expecting prices to fall.
IPO: It is an Initial Public offering that
happens when the private company
becomes a publicly traded company.
Broker: A person who buy or sell stocks
on your behalf.
Portfolio: A collection of investments.
owned by you.
Dividend: Portion of company earnings
which
is paid to the share holder
Exchange: A place where different
types of investments are traded.
Stock Symbol: A one to three character
alphabet symbol which represents a
Company listed on the exchange. Eg
TCS - Tata Consultancy Services.
 Secondary offering: This is another
offer in order to Sell more Stocks and
to raise more money
Index: A benchmark that is used by
investors and portfolio managers to
Measure the market performance.
Liquidity. It refers to how easy can a
stock be Sold off.
Demat Account: An account that will
hold the buyer. shares in the name of
the buyer
Volume: The Number of Shares of
stock time
traded during a particular time period.
 Top 25 companies
with their market cap
Company MCAP(M)
1. RELIANCE IND. 1,70,38,754

2. TCS 1,24,47,178

3. HDFC BANK 1,20,23,400

4. ICICI BANK 66,82,004

5. HUL 60,20,828

6. INFOSYS 58,30,838

7. ITC 55,80,509

8. BHARTI AIRTEL 52,17,966

9. SBI 50,99,969

10. BAJAJ FINANCE 42,69,726

11. LIFE INSURANCE

CORPORATION 41,22,950

12. L&T 37,44,367

13. KOTAK MAHINDRA
BANK 35,00,640

14. HCL TECHNOLOGIES 31,98,597

15. ASIAN PAINTS 30,52,215

16. ADANI ENTERPRISES 30,08,007

17. AXIS BANK 29,34,213

18. MARUTI SUZUKI 28,50,352

19. TITAN 27,33,138

20. SUN PHARMA 27,27,924

21. ULTRATECH CEMENT 23,71,414

22. BAJAJ FINSERV 23,59,010

23. AVENUE SUPERMARTS 23,09,419

24. ONGC 22,13,500

25. WIPRO 21,63,204