NAME – MANISH BHUPAL SHARMA

DESIGNATION – RESEARCH AND BUSINESS DEVELOPMENT ASSOCIATE

COLLEGE – ROHIDAS PATIL INSTITUTE OF MANAGEMENT STUDIES

FY.MMS - 2022082

COMPANY NAME – PRAEDICO GLOBAL RESEARCH PVT.LTD

ASSIGNMENT NO.1 – STOCK MARKET TIMINGS IN INDIA AND THEIR

IMPORTANCE & TOP 25 COMPANIES IN TERMS OF MARKET
CAPITALIZATION

INTRODUCTION

The stock market in India operates during a specific time window. On weekdays from
9.15 am to 3.30 pm, retail customers must conduct these transactions through a brokerage
firm. Most investors buy and sell securities listed on the Bombay Stock Exchange (BSE)
and National Stock Exchange (NSE), two of India's major stock exchanges. These major
stock exchanges in India follow the same stock market timings.

OBJECTIVES OF THE STUDY

 To study about Indian stock market timing and their importance.

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Stock Market Timings in India and Their Importance

SESSIONS TIME

PRE-OPENING SESSION 9.00AM – 9.08AM

TRADING SESSION 9.15AM – 3.30PM

CLOSING SESSION 3.40PM – 4.00PM

Trading in the equities segment takes place on all days of the week except Saturdays and
Sundays and trading holidays declared by the Exchange in advance. The stock market
timings are mainly divided into three sessions. They are Pre-opening, Regular trading and
Post closing session.

PRE-OPEN SESSION

One can start placing the order for any transactions during this period. Pre-open order
matching starts immediately after close of pre-open order entry. Which means these
orders are given preference as soon as the market hours starts as they are cleared of in the
beginning.

Order entry & modification Opens: 09:00 hours

Order entry & modification Closes: 09:08 hours*
*with random closure in last 1 minute.

REGULAR TRADING SESSION

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During these hours any transactions made follows bilateral order matching system, which
means the demand and supply forces determine the prices. Since the Bilateral order
matching system is volatile and includes several market fluctuations that create an impact
on the security prices in the end, the multi-order system was formulated for the pre-
opening session.

Normal/Limited Physical Market Opens: 09:15 hours

Normal/Limited Physical Market Close: 15:30 hours

THE POST CLOSURE SESSION

It is held between 15:40 hours and 16:00 hours. During this period, you can bid for the
following day’s trade as this is post market closing session. If there are adequate number
of buyers and sellers, bids placed during this period are confirmed. The transaction
conducted for the bids placed during the period are not affected by the opening price of
the market. Hence, even if the closing price exceeds opening share price, bids can be
cancelled by investors, likewise if the opening price exceeds the closing price then an
investor can release the capital gains. But this has to be done in the narrow window of
per-opening session in between 9.00 am to 9.08 am.

AFTER MARKET ORDER (AMO)

AMO refers to the facility using which you can place orders to buy or sell stocks for the
next day's trading before commencement of trading. This is useful for people who are
unable to monitor the market at opening or during the trading session. AMO timings are
4:30 PM to 8:50 AM.

MUHURAT TRADING

Indian stock markets are generally not functional for any transactions on Diwali - it being
a public holiday owing to the religious celebration across the country. However, since

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purchase of new products and investments are considered auspicious during the
festival, Muhurat Trading has its own importance.

Although, there is no fix timing (5.30 p.m. to 6.40 pm.), it depends on the Muhurat
(auspicious time) decided by exchange which may vary every year.

TOP 25 COMPANIES IN TERMS OF MARKET CAPITALIZATION

INTRODUCTION

Market capitalization stands for the total market value of a firm’s outstanding shares of
stock. Expanded as market capitalization, it is calculated by multiplying the total number
of a company’s outstanding shares by the present market price of one share. Market
capitalization is an important number to determine a company’s size. Since a company’s
size is a very important characteristic of a company that interests the investors, the
market cap of a company is calculated from time to time and analytically compared with
those of other companies resembling its size.

OBJECTIVE OF THE STUDY

 To study about Market Capitalization and Free-Float Market Capitalization of top

companies.

FREE-FLOAT MARKET CAPITALIZATION

In standard market capitalization, the calculation involves determining the total number
of outstanding shares, including both public and privately owned ones. However, in free-

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float market cap method, the valuation of a company relies only on the outstanding shares
held publicly.

This share number is then multiplied with the price for each share. In this entire
calculation, privately-owned shares are excluded. Therefore, shares owned by trusts,
government bodies and promoters are ignored. This also indicates that the value of a free-
float market capitalization would always be lower than the company’s actual market
capitalization value.

MARKET CAPITALIZATION

Market capitalization is the measure of a company’s outstanding shares multiplied by the

price of each share. For instance, a company with 25000 outstanding shares at Rs. 40
each will have a market cap of Rs. 10 lakh. The size of market capitalization for a
company enables its categorization into small-cap, mid-cap and large-cap classes.
However, free-float market capitalization is a different concept altogether.

EXAMPLE –

Mehta Textiles has 50000 outstanding shares, each priced at Rs. 28. From these, 27000
shares are held publicly, while the remaining 23000 shares are owned privately. From
this data, it is possible to calculate both the market cap and the free-float market
capitalization.

Market capitalization for Mehta Textiles

Total outstanding shares x Price of each share

50000 x 28 = Rs. 1400000

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Free-float market capitalization for Mehta Textiles

Publically owned outstanding shares x Price of each share

27000 x 28 = Rs. 756000

TOP 25 COMPANIES WITH THEIR MARKET CAPITALIZATION

AND FREE-FLOAT MARKET CAPITALIZATION

Sr. No COMPANY NAME FREE FLOAT MARKET CAP

MARKET CAP (CR.)
(CR.)
1 RELIANCE INDUSTRIES 793,040 16,01,778

2 TATA CONSULTANCY 318,288 11,49,057

SERVICES
3 HDFC BANK LTD. 691,974 929,947

4 ICICI BANK LTD. 629,392 629,392

5 HINDUSTAN UNILEVER LTD. 228,440 599,580

6 INFOSYS LTD. 443,137 522,013

7 HOUSING DEVELOPMENT 503,044 503,044

FINANCE COPERATION
8 ITC LTD. 497,307 497,307

9 STATE BANK OF INDIA 206,337 485,498

10 BHARTI AIRTEL LTD. 193,417 430,965

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11 KOTAK MAHINDRA BANK 278,785 376,482

12 BAJAJ FINANCE LTD. 159,131 360,923

13 LIC 12,056 344,459

14 LARSEN & TUOBRO LTD. 311,173 311,173

15 HCL TECHNOLOGIES LTD. 111,091 282,818

16 ASIAN PAINTS LTD. 129,182 272,709

17 AXIS BANK LTD. 244,328 266,036

18 MARUTI SUZUKI INDIA 114,329 262,043

19 SUN PHARMACEUTICAL LTD. 109,075 239,621

20 TITAN COMPANY LTD. 108,952 231,321

21 AVENUE SUPERMARKETS 56,698 226,704

LTD.
22 ULTRA TECH CEMENTS LTD. 89,495 223,513

23 ADANI ENTREPRISES LTD. 65,902 214,177

24 BAJAJ FINSERV LTD. 83,846 213,620

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CONCLUSION

In standard market capitalization, the calculation involves determining the total number
of outstanding shares, including both public and privately owned ones. The value of a
free-float market capitalization would always be lower than the company’s actual market
capitalization value.