Professional Documents
Culture Documents
BST Project Class 12
BST Project Class 12
Items
1. Acknowledgement
2. Introduction
3. Functions of stock exchange
4. Features of stock exchange
5. History of stock exchange in India
6. National Stock Exchange (NSE)
7. Bombay Stock Exchange (BSE)
8. Securities and Exchange Board of India
(SEBI)
9. Timings of Stock Exchange in India
10. Terminologies
11. Top 20 Companies (NSE)
12. Portfolio
13. Power Grid Corp
14. Tata Steel
15. Infosys
16. Larsen
17. Bharti Airtle
18. Conclusion
19. Bibliografhy
ACKNOWLEDGEMENT
With my sincere regards, I wish to acknowledge the
indebtness and gratitude to the contributions of
people who helped me at every stage of the project.
I want to give my sincere thanks to our respected
_____________ma’am/sir. He/she helped me to
understand intricate issues involved in making the
project. Without her/his guidance and support, the
completion of this project wouldn’t be possible.
Also, a special thanks and appreciation goes to my
parents and classmates, who helped ma a lot in
gathering different information and guiding me in
making this project. And lastly, I would like to thank
my school for providing the wonderful opportunity
to do a project in this topic.
INTRODUCTIONS
Stock Market is a place where shares of public listed
companies are traded. A stock exchange facilitates
stock brokers to trade company stocks and other
securities. A stock may be bought or sold only if it is
listed on an exchange.
A stock exchange facilitates stock brokers to trade
company stocks and other securities. A stock may
be bought or sold only if it is listed on an exchange.
Thus, it is the meeting place of the stock buyers and
sellers. India's premier stock exchanges are the
Bombay Stock Exchange and the National Stock
Exchange.
FUNCTIONS OF STOCK EXCHANGE
1.Role of an Economic Barometer: Stock
exchange serves as an economic barometer that
is indicative of the state of the economy. It
records all the major and minor changes in the
share prices. It is rightly said to be the pulse of
the economy, which reflects the state of the
economy.
2.Valuation of Securities: Stock market helps in
the valuation of securities based on the factors of
supply and demand. The securities offered by
companies that are profitable and growth-
oriented tend to be valued higher. Valuation of
securities helps creditors, investors and
government in performing their respective
functions.
3.Transactional Safety: Transactional safety is
ensured as the securities that are traded in the
stock exchange are listed, and the listing of
securities is done after verifying the company’s
position. All companies listed have to adhere to
the rules and regulations as laid out by the
governing body.
4.Contributor to Economic Growth: Stock
exchange offers a platform for trading of
securities of the various companies. This process
of trading involves continuous disinvestment
and reinvestment, which offers opportunities for
capital formation and subsequently, growth of
the economy.
5.Making the public aware of equity
investment: Stock exchange helps in providing
information about investing in equity markets
and by rolling out new issues to encourage
people to invest in securities.
6.Offers scope for speculation: By permitting
healthy speculation of the traded securities, the
stock exchange ensures demand and supply of
securities and liquidity.
7.Facilitates liquidity: The most important role of
the stock exchange is in ensuring a ready
platform for the sale and purchase of securities.
This gives investors the confidence that the
existing investments can be converted into cash,
or in other words, stock exchange offers
liquidity in terms of investment.
8.Better Capital Allocation: Profit-making
companies will have their shares traded actively,
and so such companies are able to raise fresh
capital from the equity market. Stock market
helps in better allocation of capital for the
investors so that maximum profit can be earned.
9.Encourages investment and savings: Stock
market serves as an important source of
investment in various securities which offer
greater returns. Investing in the stock market
makes for a better investment option than gold
and silver.
POST-INDEPENDENCE SCENARIO
--Post-independence, BSE dominated the volume of
trading. However, the low level of transparency &
undependable clearing & settlement systems, apart
from other macro factors, increased the need for a
Financial market regulator.
-- As a consequence, in 1988, the Securities and
Exchange Board of India (SEBI) was born as a non-
statutory body, which was further given statutory
status by passing SEBI Act an 30 January,
1992.
-- After the Harshad Mehta scam in 1992, there was
pressing need for anther stock exchange large
enough to compete with the BSE & bring
transparency to the stock market. This gave birth to
the National Stock Exchange (NSE).
-- In 2015, SEBI was merged with the Forward
Markets Commission (FMS) to strengthen
commodities market regulation, facilitate domestic
& foreign institutional participation & launch new
products.
-- After independence, 23 stock exchange where
added apart from BSE, but in present, there are only
5 recognised stock exchanges, apart from NSE &
BSE.
Calcutta stock exchange ltd.
Magadh stock exchange ltd.
Metropolition stock exchange of India ltd.
India international exchange (india INX)
All other exchanges have been granted exit by SEBI.
-- In other past, securities were bought & sold on
the floor of the stock exchange through open outcry
system or action system. Deals were struck among
brokers, prices were shouted out & shares were sold
to the highest bidder.
-- However, in present, this has been replaced by an
online screen based electronic trading system. All
buying and selling is done in the brokers office
through a computer terminal, i.e., trading has
shifted from the stock market floor to the brokers
office.
NATIONAL STOCK EXCHANGE (NSE)
market intermediaries
Pre-opening session
The pre-opening session starts at 09:00 AM and goes
on till 09:15 AM. It’s further divided into three
sections. During one of these time slots, you can
place orders to buy or sell shares for a limited
period. Let’s look at the details of the pre-opening
session below.
Section 1: From 09:00 AM to 09:08 AM
During these 8 minutes, you can place orders to buy
or sell different shares in the stock market. You can
also modify or cancel any orders that you may have
placed. When the normal trading session begins at
09:15 AM, the orders placed during this section of
the pre-opening session get preference in the queue
of orders.
Section 2: From 09:08 AM to 09:12 AM
During these 4 minutes, you cannot place any new
orders, modify existing ones, or cancel any order.
This section is necessary so that price matching can
be performed. Price matching involves comparing
demand and supply. It helps determine the final
prices at which different shares will be traded when
the market opens at 09:15 AM.
Section 3: From 09:12 AM to 09:15 AM
This 3-minute window of time is like a connection
section between the pre-opening session and the
normal trading hours. It behaves like a buffer to ease
the transition into the regular trading session. Again,
during these 3 minutes as well, you cannot place,
modify, or cancel any orders.
Normal session
This is also known as the continuous trading session,
and it runs from 09:15 AM to 03:30 PM. During this
session, you can trade freely, place orders to buy or
sell stocks, and modify or cancel your buy or sell
orders without any limitations. During this window,
a bilateral order matching system is followed. This
means that each sell order is matched with a buy
order that has been placed at the same stock price,
and each buy order is matched with a sell order that
has been placed at the same stock price.
Post-closing session
This session begins when the regular trading session
comes to a close at 03:30 PM. The post-closing
session, which runs up to 04:00 PM, consists of two
sections.
Section 1: From 03:30 PM to 03:40 PM
In these 10 minutes, the closing prices of stocks are
calculated by taking the weighted average of the
stock prices traded between 03:00 PM and 03:30
PM. The closing prices of indices like Sensex and
Nifty are calculated by considering the weighted
average prices of all the securities that are listed in
that index.
Section 2: From 03:40 PM to 04:00 PM
In this 20-minute section, you can still place buy and
sell orders. But the orders are confirmed only if there
are sufficient numbers of buyers and sellers in the
market.
Muhurat trading
In India, the stock market typically remains closed
on public and national holidays. However, on Diwali
each year, the stock market is open for one hour for
a Muhurat trading session; this is in place since
Diwali is considered to be an auspicious day. The
time and the date for this session changes each year,
and investors often make use of a Share trading
app during this special trading hour.
TERMINOLOGY
Annual Report
An annual report is a yearly report that
every company prepares to impress the
shareholders of their company. The annual
report consists of lots of information about
a company, from cash flow to
management strategy.
Several people read the annual report to
look at the company’s solvency and judge
their financial position.
Arbitrage
Arbitrage means purchasing something
like foreign money from one place and
selling it to another place where the price
of the foreign money is higher than buying
place.
For example: if stock is trading out $20
from one Market and $21 on other
markets, the trader must buy shares at $20
from one Market and sell them for $21 on
the different Market, getting the difference
amount between both the markets price.
Averaging Down
Averaging down means the investor buys
more stock when the price of a particular
stock goes down. This decreases the
average purchase price of your specific
stock.
Several investors use this strategy if they
feel that consensus about a specific
company is wrong, so they expect the
stock price to jump back and earn profit.
Bear Market
It is a market where investors talk about
the stock market performing in a
downward trend, or it is a certain period
where the prices of multiple stocks are
falling.
Broker
A broker is a person who buys and sells
investment on your behalf and, in
exchange, takes a certain amount of
money called commission or fee.
Dividend
A dividend means when the company
earns profit, a particular portion of their
earnings is distributed to shareholders or
the people who own the company stock on
a quarterly or annual basis. Not every
company pays dividends, and if you’re
after penny stocks, you’ll likely not get
any dividends.
Sensex
Sensex is a figure that indicates all the
relative share prices that are listed on the
Bombay Stock Exchange.
Nifty
The Nifty 50 Index, called the National
Stock Exchange of India, is the primary
and brad based stock market index for the
equity market of India.
The Nifty 50 consists of 50 Indian
company stocks in 12 different sectors,
and it is one out of two stock indices that
are mainly used in the stock market.
Quote
The stock’s latest trading prices contain
information that is given in a quote.
Sometimes, the quote is delayed by 20
minutes unless you’re an actual
stockbroker working in an existing trading
platform.
Share Market
A share market is a market in which shares
of a particular company are purchased and
sold. The stock market is a definite
example of a share market.
Bull Market
It is a market where investors talk about
the stock market performing in an upward
trend, or it is a certain period where the
prices of multiple stocks are increasing.
Bid Price
A bid price is nothing but the amount that
you desire to pay for a particular share.
Ask Price
Ask price is a specific price at which you
are looking to sell a share.
Order
Order means the purpose of buying and
selling shares in a given range of price.
For example, you have placed an order to
buy 200 shares from company A, at a
maximum price of Rs 50 per share.
Trading Volume
Trading volume means the number of
shares that are traded on a particular day.
Market Capitalisation
It simply means the value of a company
according to the stock market. That is the
current value of all the shares of a
company put together.
Intra-Day Trading
Intraday trading means buying and selling
your desired stocks on the same day so
that before trading hours get over, all your
trading positions will be closed within the
same day.
Market Order
A market order is an order to buy and sell
shares at the market price. Several
investors don’t go with this Order because
the trade price in the market order remains
volatile.
Day Order
A day order is an order that remains good
till the end of the trading day. If the Order
does not perform by the time the market
closes, the Order will be canceled.
Limit Order
A limit order is to buy shares below a
fixed price and sell shares above a fixed
price. It is advisable to use a limit order to
trade shares.
Portfolio
The portfolio is a collection of all the
investments that an investor has made
right from purchasing a share for the first
time.
Liquidity
Liquidity means how stocks can be sold
off quickly. Shares that get sold consist of
high trade volumes quickly and are called
highly liquid.
IPO
IPO means a private company is turning
into a public company by issuing its shares
to the public for the first time. In the case
of an IPO, the investor can buy the shares
directly from the company.
Secondary Sharing
It is another offering used to sell more
stocks and gain more money from the
public.
Going Long
Betting on the price of a stock that will
increase so that you can buy at a low price
and sell at a high price.
TOP 20 COMPANIES (NSE)
https://www.nseindia.com/market-data/most-
active-equities
PORTFOLIO
A portfolio may be defined as a collection of
financial assets & investment tools that are held by
an individual, a financial institution or an investment
firm.
Imaginary portfolio totalling a sum of approximately
RS.50,000 in the following companies:-
Power Grid Corp
Tata steel
Infosys
Larsen & Toubro
Bharti Airtle
History
The Power Grid Corporation of India Limited
was incorporated on 23 October 1989 under the
Companies Act, 1956 with an authorized share
capital of Rs. 5,000 Crore (subsequently
enhanced to Rs. 10,000 Crore in Financial Year
(FY) 2007–08) as a public limited company,
wholly owned by the Government of India with
51.34% stake in the company as on 31
December 2020 and as principal electric power
transmission company for the country.
Its original name was the "National Power
Transmission Corporation Limited", was
charged with planning, executing, owning,
operating and maintaining high-voltage
transmission systems in the country. On 8
November 1990, the firm received its Certificate
for Commencement of Business. Their name
was subsequently changed to Power Grid
Corporation of India Limited, on 23 October
1992.
Power Grid management started functioning in
August 1991 and subsequently took over
transmission assets from National Thermal
Power (NTPC), National Hydroelectric Power
Corporation (NHPC)], North Eastern Electric
Power Corporation Limited (NEEPCO), Neyveli
Lignite Corporation (NLC), and other
companies such as NPC, THDC, SJVNL in a
phased manner; it commenced commercial
operation in January 1993. It also took over the
operation of existing Regional Load Despatch
Centers (RLDCs) from the Central Electricity
Authority (CEA), in a phased manner from 1994
to 1996, which have been upgraded and
modernized with Unified Load Despatch and
Communication (ULDC) schemes. The National
Load Despatch Centre (NLDC) was established
in 2009 for overall coordination at the national
level. Later the company had diversified into the
telecom sector for efficient use of its spare
telecommunication capacity of unified load
dispatch center (ULDC) schemes and also
leverage on its country-wide transmission
infrastructure.
According to its mandate, the corporation, apart
from providing a transmission system for
evacuation of central sector power, is also
responsible for the establishment and operation
of regional and national power grids to facilitate
the transfer of power within and across the
Regions with reliability, security, and economy
on sound commercial principles. Based on its
performance, the firm was recognized as a
Mini-Ratna Category-I Public Sector
Undertaking in October 1998. It was conferred
with the status of "Navratna" by the
Government of India in May 2008 and
"Maharatna" status in October 2019.
Nationalisation attempts
There have been two attempts to nationalise
Tata Steel, one attempt in 1971 and another in
1979, both were unsuccessful. In 1971, Prime
Minister Indira Gandhi tried to nationalise the
company, but failed. In 1979, Prime
Minister Morarji Desai wanted to nationalise
TISCO (now Tata Steel), spurred by Minister for
Industries George Fernandes, and Minister of
Steel, Mines, and Coals Biju Patnaik. However,
union protests prevented such nationalisation
efforts.
In 1990, the company expanded and
established a subsidiary, Tata Inc., in New
York. The company changed its name from
TISCO to Tata Steel Ltd. in 2005.
Labour welfare
Tata Steel was among the first Indian
companies to provide various labour welfare
benefits, such as eight-hour workdays since
1912, free medical care since 1915, school
facilities for the children of employees since
1917, paid time off since 1920, formation of
a provident fund and accident compensation in
1920, vocational training since 1921, maternity
benefits since 1928, profit sharing bonuses
since 1934, and retiring gratuity since 1937.
Date Open High Low Close
Infosys
Infosys Limited is an
Indian multinational information
technology company that provides business
consulting, information
technology and outsourcing services. The
company was founded in Pune and is
headquartered in Bangalore. Infosys is the
second-largest Indian IT company, after Tata
Consultancy Services, by 2020 revenue figures.
On 24 August 2021, Infosys became the fourth
Indian company to reach US$100 billion
in market capitalization. It is one of the top Big
Tech (India) companies.
History
Infosys was founded by seven engineers
in Pune, Maharashtra, India. Its initial capital
was $250. It was registered as Infosys
Consultants Private Limited on 2 July 1981. In
1983, it relocated to Bangalore, Karnataka.
The company changed its name to Infosys
Technologies Private Limited in April 1992 and
to Infosys Technologies Limited when it
became a public limited company in June
1992. It was renamed Infosys Limited in June
2011.
An initial public offering (IPO) was floated in
February 1993 with an offer price
of ₹95 (equivalent to ₹690 or US$8.60 in 2023)
per share against a book value
of ₹20 (equivalent to ₹150 or US$1.80 in 2023)
per share. The IPO was undersubscribed but it
was "bailed out" by US investment
bank Morgan Stanley, which picked up a 13%
equity stake at the offer price. Its shares were
listed in June 1993 with trading opening
at ₹145 (equivalent to ₹1,100 or US$13 in
2023) per share.
Infosys shares were listed on the Nasdaq stock
exchange in 1999 as American depositary
receipts (ADR). It became the first Indian
company to be listed on Nasdaq. The share
price surged to ₹8,100 (equivalent to ₹35,000
or US$440 in 2023) by 1999, making it the
costliest share on the market at the time. At that
time, Infosys was among the 20 biggest
companies by market capitalization on the
Nasdaq. The ADR listing was shifted from
Nasdaq to NYSE Euronext to give European
investors better access to the company's
shares.
In July 2010, then-British Prime Minister David
Cameron visited Infosys HQ in Bangalore and
addressed Infosys employees.
In 2012, Infosys announced a new office
in Milwaukee, Wisconsin, to serve Harley-
Davidson. Infosys hired 1,200 United States
employees in 2011 and expanded the
workforce by 2,000 employees in 2012.
In April 2018, Infosys announced expansion
in Indianapolis, Indiana.
In July 2014, Infosys started a product
subsidiary called EdgeVerve Systems, focusing
on enterprise software products for business
operations, customer service, procurement and
commerce network domains. In August 2015,
assets from Finacle Global Banking Solutions
were transferred from Infosys, thus becoming
part of the product company EdgeVerve
Systems' product portfolio.
Its annual revenue surpassed US$10 million in
FY 1995, US$100 million in FY 1999, US$1
billion in FY 2004, and US$10 billion in FY
2017. Its most up to date report, as of Dec
2023, shows US$18 billion.
Bharti Airtel
Bharti Airtel Limited, commonly known
as Airtel, is an
Indian multinational telecommunications service
s company based in New Delhi. It operates in
18 countries across South Asia and Africa, as
well as the Channel Islands. Currently, Airtel
provides 5G, 4G and LTE Advanced services
throughout India. Currently offered services
include fixed-line broadband, and voice
services depending upon the country of
operation. Airtel had also rolled out its Voice
over LTE (VoLTE) technology across all Indian
telecom circles. It is the second largest mobile
network operator in India and the second
largest mobile network operator in the world.
Airtel was named India's 2nd most valuable
brand in the first ever Brandz ranking by
Millward Brown and WPP plc.
Airtel is credited with pioneering the strategic
management of outsourcing all of its business
operations except marketing, sales and finance
and building the 'minutes factory' model of low
cost and high volumes. The strategy has since
been adopted by several operators. Airtel's
equipment is provided and maintained
by Ericsson, Huawei, and Nokia
Networks whereas IT support is provided
by Amdocs. The transmission towers are
maintained by subsidiaries and joint venture
companies of Bharti including Bharti
Infratel (merged with Indus Towers) and Indus
Towers in India. Ericsson agreed for the first
time to be paid by the minute for installation and
maintenance of their equipment rather than
being paid upfront, which allowed Airtel to
provide low call rates of ₹1 (1.3¢ US)/minute.
History
In 1984, Sunil Mittal started assembling push-
button phones in India, which he earlier used to
import from a Singaporean company, Singtel,
replacing the old-fashioned, bulky rotary
phones that were in use in the country then.
Bharti Telecom Limited (BTL) was incorporated
and entered into a technical tie-up with
Siemens AG of Germany for the manufacture of
electronic push-button phones. By the early
1990s, Bharti was making fax machines,
cordless phones and other telecom gear. He
named his first push-button phone as 'Mitbrau'.
In 1992, he successfully bid for one of the four
mobile phone network licenses auctioned
in India. One of the conditions for the Delhi
cellular licenses was that the bidder have some
experience as a telecom operator. So, Mittal
clinched a deal with the French telecom
group Vivendi. He was one of the first Indian
entrepreneurs to identify the mobile telecom
business as a major growth area. His plans
were finally approved by the Government in
1994 and he launched services in Delhi in
1995, when Bharti Cellular Limited (BCL) was
formed to offer cellular services under the brand
name AirTel. Within a few years, Bharti became
the first telecom company to cross the 2 million
mobile subscriber mark. Bharti also brought
down the STD/ISD cellular rates in India under
the brand name 'India one'.
In 1999, Bharti Enterprises acquired control of
JT Holdings, and extended cellular operations
to Karnataka and Andhra Pradesh. In 2000,
Bharti acquired control of Skycell
Communications, in Chennai. In 2001, the
company acquired control of Spice Cell
in Kolkata. Bharti Enterprises went public in
2002, and the company was listed on Bombay
Stock Exchange and National Stock Exchange
of India. In 2003, the cellular phone operations
were re-branded under the single Airtel brand.
In 2004, Bharti acquired control of Hexacom
and entered Rajasthan. In 2005, Bharti
extended its network to Andaman and Nicobar.
This expansion allowed it to offer voice services
all across India.
Airtel launched "Hello Tunes", a caller ring back
tone service (Ringing Tone), in July 2004
becoming the first operator in India to do so.
The Airtel theme song, composed by A.R.
Rahman, was the most popular tune in that
year.
In May 2008, it emerged that Airtel was
exploring the possibility of buying the MTN
Group, a South Africa-based
telecommunications company with coverage in
21 countries in Africa and the Middle
East. Financial Times reported that Bharti was
considering offering US$45 billion for a 100%
stake in MTN, which would be the largest
overseas acquisition ever by an Indian firm.
However, both sides emphasize the tentative
nature of the talks, while The
Economist magazine noted, "If anything, Bharti
would be marrying up," as MTN has
more subscribers, higher revenues and broader
geographic coverage. However, the talks fell
apart as MTN Group tried to reverse the
negotiations by making Bharti almost a
subsidiary of the new company. In May 2009,
Bharti Airtel again confirmed that it was in talks
with MTN and the companies agreed to discuss
the potential transaction exclusively by 31 July
2009. Talks eventually ended without
agreement, some sources stating that this was
due to opposition from the South African
government.
In 2009, Bharti negotiated for its strategic
partner Alcatel-Lucent to manage the network
infrastructure for the fixed-line business. Later,
Bharti Airtel awarded the three-year contract
to Alcatel-Lucent for setting up an Internet
Protocol access network across the country.
This would help consumers access internet at
faster-speed and high-quality internet browsing
on mobile handsets.
In 2009, Airtel launched its first international
mobile network in Sri Lanka. In June 2010,
Bharti acquired the African business of Zain
Telecom for $10.7 billion making it the largest
ever acquisition by an Indian telecom firm. In
2012, Bharti tied up with Walmart, the US retail
giant, to start a number of retail stores across
India. In 2014, Bharti planned to acquire Loop
Mobile for ₹7 billion (US$88 million), but the
deal was called off later.
On 18 November 2010, Airtel rebranded itself in
India in the first phase of a global rebranding
strategy. The company unveiled a new logo
with 'airtel' written in lower case. Designed by
London-based brand agency, Superunion, the
new logo is the letter 'a' in lowercase, with
'airtel' written in lowercase under the logo. On
23 November 2010, Airtel's Africa operations
were rebranded to 'airtel'. Sri Lanka followed on
28 November 2010 and on 20 December 2010,
Warid Telecom rebranded to 'airtel'
in Bangladesh.