JAYSHREE PERIWAL HIGH SCHOOL

2021-2022

STOCK EXCHANGE

SUBMITTED BY: SAMYAK JAIN SUBMITTED TO:

CLASS: 12 COM. C REKHA SHEKHAWAT
 STOCK EXCHANGE
A STOCK EXCHANGE IS A PLATFORM FOR EXCHANGING STOCKS, SHARE, SECURITIES AND
BONDS.
STOCK EXCHANGES AROUND THE WORLD ENABLES THE STOCK BROKERS AND TRADERS TO
OPERATE OR HIGHLY ORGANIZED AND INSTITUTIONAL MANNERS. THE STOCK EXCHANGES
ARE REGULATED BY LAW OF THE COUNTRY AND HENCE ASSURES THE PROHIBITION OF
FRAUDULENT ACTIVITIES.
A PARTICULAR SHARE IS ELIGIBLE TO BE TRACKED IN THE STOCK MARKET WHERE THE
COMPANY ALLOWED WITH. COMPANY IS ALLOWED TO LET THE STOCK AFTER ITS MEET
SOME PREDEFINED CRITERIA FOR THAT PARTICULAR STOCK EXCHANGE. IN THE EARLIER
DAYS THERE WERE CENTRALIZED PHYSICAL FORMS OF STOCK EXCHANGE, BUT WITH
CHANGE IN TECHNOLOGY THE MARKET HAS TAKEN AN ELECTRONIC FORM WHERE MOST
OF THE TRANSACTIONS HAPPEN OVER THE NETWORKED COMPUTER.
ONLY THE REGISTERED BROKERS OF A TRADE EXCHANGE ARE ALLOWED TO PERFORM ANY
EXCHANGE OPERATIONS. IN STOCK MARKETS OFTEN THE PROCESS IS CONTINUOUS
AUCTION OF ASSETS IS PERFORMED.
ONE COUNTRY MAY HAVE ONE OR MORE STOCK EXCHANGE. SOME OF THE MAJOR STOCK
EXCHANGE AROUND THE WORLD ARE NEW YORK STOCK EXCHANGE – NASDAQ, LONDON
STOCK EXCHANGE, SHANGHAI STOCK EXCHANGE, BOMBAY STOCK EXCHANGE AND
EURONEXT. THE AMSTERDAM STOCK EXCHANGE ESTABLISHED IN 1602 IS THE WORLD’S
FIRST STOCK EXCHANGE.
• INITIAL PUBLIC OFFERINGS OF STOCK AND BONDS TO INVESTORS IS DONE IN THE
PRIMARY MARKET AND SECONDARY TRADING IS DONE IN THE SECONDARY
MARKET. A STOCK EXCHANGE OFFER THE MOST IMPORTANT COMPONENTS OF A
STOCK MARKET. SUPPLY AND DEMAND IN STOCK MARKET ARE DRIVEN BY
VARIOUS FACTORS THAT ARISE ALL FREE MARKETS, AFFECTS THE PRICE OF THE
STOCKS.
• THERE IS USUALLY NO OBLIGATIONS FOR STOCK TO BE USED THROUGH THE STOCK
MARKET ITSELF, NOR MUST STOCK THE SECONDARY TRADED ON EXCHANGE. SUCH
TRADING MAY BE OFF EXCHANGE OR OVER THE TRADING COUNTER. THIS IS THE
USUAL WAY THAT DERIVATIVES AND BONDS ARE TRADED. INCREASINGLY, STOCK
EXCHANGE ARE PART OF GLOBAL SECURITIES MARKET STOCK EXCHANGES ALSO
SERVE AN ECONOMICS FUNCTION IN PROVIDING LIQUIDITY TO SHAREHOLDERS IN
PROVIDING AN EFFICIENT MEANS OF DISPOSING OF SHARES.
 FUNCTIONS OF STOCK EXCHANGE
⮚PROVIDING LIQUIDITY AND MARKETABILITY TO EXISTING
SECURITIES
⮚PRICING OF SECURITIES
⮚SAFETY OF TRANSACTIONS
⮚CONTRIBUTES TO ECONOMIC GROWTH
⮚SPREADING OF EQUALITY CULT
 HISTORY OF INDIAN STOCK EXCHANGE
• THE FIRST ORGANIZED STOCK EXCHANGE IN INDIA STARTED IN 1875 AT
BOMBAY AND IT IS STARTED TO BE OLDEST IN ASIA. IN 1894 THE
AHMADABAD STOCK EXCHANGE WAS STARTED TO FACILITATE DEALING IN
THE SHARE OF TEXTILE MILLS. THE CULCUTTA STOCK EXCHANGE WAS
STARTED IN 1908 TO PROVIDE A MARKET FOR SHARE OF PLANTATIONS AND
JUTE MILLS.
• THEN THE MADRAS STOCK EXCHANGE WAS STARTED IN 1920. AT PRESENT
THERE ARE 9 STOCK EXCHANGES IN INDIA.
Stock Exchange Location
Bombay Stock Exchange Mumbai
National Stock Exchange of India Mumbai
Calcutta Stock Exchange Kolkata
India International Exchange Gujarat
Multi Commodity Exchange of India Mumbai
National Commodity and Derivatives Exchange Mumbai
India Commodity Exchange Limited Mumbai
Metropolitan Stock Exchange of India Mumbai
National Stock Exchange Gujarat
 BSE
BSE IS AN INDIAN STOCK EXCHANGE LOCATED AT DALAL STREET, MUMBAI.
ESTABLISHED IN 1875, THE BSE [FORMALLY KNOWN AS BOMBAY STOCK EXCHANGE
LTD.] IS ASIA’S OLDEST STOCK EXCHANGE WITH AN OVERALL MARKET
CAPITALIZATION OF MORE THAN 3 TRILLION DOLLARS AS ON MAY 2021.
THE BOMBAY STOCK EXCHANGE IS THE OLDEST STOCK EXCHANGE IN ASIA WHICH WAS
FOUNDED BY PREMCHAND RAYCHAND, AN INFLUENTIAL BUSINESSMAN IN THE 19TH
CENTURY BOMBAY AND CAME TO BE KNOWN AS THE COTTON KING, THE BULLION
KING OR JUST THE BIG BULL.
THE HISTORY DATES BAC TO 1855 WHEN 22 STOCK BROKERS WOULD GATHER UNDER
BANYAN TREE IN FRONT OF MUMBAI’S TOWNHALL. THE LOCATION OF THESE
MEETINGS CHANGED MANY TIMES TO ACCOMMODATE AN INCREASING NUMBER OF
BROKERS. THE GROUP EVENTUALLY MOVED TO DALAL STREET IN 1874 AND BECAME
AN OFFICIAL ORGANIZATION KNOWN AS ”THE NATIVE SHARE AND STOCK BROKERS
ASSOCIATION” IN 1875.
ON AUGUST 31, 1975, THE BSE BECAME THE FIRST STOCK EXCHANGE TO BE
RECOGNIZED BY THE INDIAN GOVERNMENT UNDER SECURITIES CONTRACTS
REGULATION ACT. IN THE 1980 THE EXCHANGE MOVED TO THE PHIZARE JEEJEENHOY
TOWER AT THE DALAL STREET, FORT AREA. IN 1986, IT DEVELOPED THE S&P BSE SENSEX
INDEX, GIVING THE BSE A MEANS TO MEASURE THE OVERALL PERFORMANCE OF THE
EXCHANGE.
 NSE
THE NATIONAL STOCK EXCHANGE OF INDIA LIMITED[NSE] IS THE LEADING
STOCK EXCHANGE OF INDIA, LOCATED IN MUMBAI, THE NSE WAS ESTABLISHED
IN 1992 AS THE FIRST DEMATERIALIZED ELECTRONIC EXCHANGE IN THE
COUNTRY. NSE WAS THE FIRST EXCHANGE IN THE COUNTRY TO PROVIDE A
MODERN, FULLY AUTOMATED SCREEN BASED ELECTRONIC TRADING SYSTEM
WHICH OFFERED EASY TRADING FACILITY TO THE INVESTORS SPREAD ACROSS
THE LENGTH AND BREATH OF THE COUNTRY . VIKRAM LIMAYE IS MANAGING
DIRECTOR AND CHIEF EXECUTIVE OFFICER OF NSE.
NATIONAL STOCK EXCHANGE WAS A TOTAL MARKET CAPITALIZATION OF MORE
THAN 3 TRILLION DOLLARS, MAKING IT THE WORLD’S 10 TH LARGEST STOCK
MARKET AS PF APRIL 2020. NSE FLAGSHIP INDEX, THE NIFTY 50, THE 50 STOCK
INDEX IS USED EXTENSIVELY BY INVESTORS IN INDIA AND AROUND THE WORLD
AS A BAROMETER OF THE INDIAN CAPITAL MARKETS. NIFTY 50 WAS LAUNCHED
IN 1996 BY THE NSE.
NSE WAS SETUP BY A GROUP OF LEADING INDIAN FINANCIAL INSTITUTIONS AT
THE BEHEST OF THE GOVERNMENT OF INDIA TO BRING TRANSPARENCY TO THE
INDIAN CAPITAL MARKET, NSE HAS BEEN ESTABLISHED WITH A DIVERSIFIED
SHARE HOLDING COMPRISING DOMESTIC AND GLOBAL INVESTORS.
SECURITIES AND EXCHANGE BOARD OF INDIA
THE SECURITIES AND EXCHANGE BOARD OF [SEBI] IS THE REGULATOR OF SECURITIES AND
COMMODITY MARKET IN INDIA OWNED BY THE GOVERNMENT OF INDIA. IT WAS ESTABLISHED ON
12TH APRIL, 1988 BUT THE STATUTORY POWERS WERE GIVEN ON 30 TH JANUARY, 1992 THROUGH THE
SEBI ACT, 1992 BY THE INDIAN PARLIAMENT. SOON SEBI WAS CONSTITUTED AS THE REGULATOR OF
CAPITAL MARKETS IN INDIA UNDER A RESOLUTION OF THE GOVERNMENT OF INDIA.
IN 1980’S THERE WERE HUGE SUDDEN CASH FLOW IN THE MARKET. MOST PROMINENT OF THOSE
WERE PRICE RAGGING. UNION GOVERNMENT OF INDIA NOTICED SUCH ACTIVITIES AND
DECLARED TO FORM AN ORGANIZATION WHICH CAN HELP RECOVER THE DECREASE IN
FINANCIAL MARKETS OF INDIA. IT WAS INITIALLY ESTABLISHED AS A NON-STATUTORY BODY BUT
LATER ON IT WAS DECLARED AS AN AUTONOMOUS BODY WITH STATUTORY POWERS. IT ATTEMPTS
TO PROTECT THE INTEREST OF INVESTORS AND AIMS AT DEVELOPING THE CAPITAL MARKETS BY
ENFORCING VARIOUS STRICT RULES AND REGULATIONS.
AJAY TYAGI IS THE CHAIRPERSON OF SEBI ON AN EXTENSION TILL FEBRUARY, 2022.
 OBJECTIVES OF SEBI
1. TO REGULATE STOCK EXCHANGE

2. TO PROTECT RIGHT OF INVESTORS

3. TO PREVENT TRADING MALPRACTICES

4. TO DEVELOP A CODE OF CONDUCT

 FUNCTIONS OF SEBI
PROTECTIVE FUNCTION
• CONTROLLING INSIDER TRADING AND IMPOSING PENALTIES FOR SUCH PRACTICES.
• UNDERTAKING STEPS FOR INVESTOR PROTECTION
• PROMOTION OF FAIR PRACTICES AND CODE OF CONDUCT IN SECURITIES MARKET.

DEVELOPMENT FUNCTION
• TRAINING OF INTERMEDIARIES OF THE SECURITIES MARKET
• CONDUCTING RESEARCH AND PUBLISHING INFORMATION USEFUL TO ALL MARKET
PARTICIPANTS.
• UNDERTAKING MEASURES TO DEVELOP THE CAPITAL MARKETS BY ADAPTING A
FLEXIBLE APPROACH.

REGULATORY FUNCTION
• REGISTRATION OF BROKERS AND SUB-BROKERS AND OTHER PLAYERS IN THE MARKET
• REGISTRATION OF COLLECTIVE INVESTMENT SCHEMES AND MUTUAL FUNDS.
• REGULATION OF TAKEOVER BIDS BY COMPANIES
REASONS FOR CHANGE IN STOCK PRICE
• BUYING BEHAVIOUR OF INSTITUTION INVESTORS

• FINANCIAL POSITION OF THE COMPANY

• LISTING IN MORE THAN ONE MARKET

• POLITICAL CHANGES

• MISCELLANEOUS PROBLEMS

• IDEAS AND STRATEGIES OF THE INVESTORS

 TOP 25 COMPANIES
S. No. COMPANY NAME MARKET CAP.[Rs. S. COMPANY NAME MARKET CAP.[Rs.
Cr] No. Cr.]
1 RELIANCE 1349893.93 14 HCL TECH 262560.67
2 TCS 118205.85 15 ITC 248146.30
3 HDFC BANK 826935.35 16 AXIS BANK 236182.90
4 INFOSYS 656278.46 17 MARUTI SUZUKI 224347.31
5 HUL 572218.87 18 AVENUE SUPERMART 215688.01
6 ICICI BANK 458824.18 19 LARSEN & TOUBRO 211688.01
7 HDFC 456503.45 20 ULTRA TECH CEMENT 205522.29
8 SBI 384026.03 21 BAJAJ FINSERV 204093.77
9 BAJAJ FINANCE 371074.71 22 NESTLE 170655.82
10 KOTAK MAHINDRA 345739.00 23 JSW STEEL 169471.33
11 BHARTI AIRTEL 293356.64 24 SUN PHARMA 164786.33
12 WIPRO 288016.24 25 ADANI GREEN ENERGY 156338.87
13 ASIAN PAINTS 287735.36
 DATE OPEN HIGH LOW CLOSE
29-6-2021 2089.50 2109.00 2084.10 2087.80
30-6-2021 2096.25 2122.65 2091.05 2110.65
1-7-2021 2118.00 2123.15 2095.00 2097.95
2-7-2021 2097.00 2132.90 2092.95 2129.05
5-7-2021 2136.45 2153.55 2131.50 2150.20
6-7-2021 2144.95 2148.90 2120.20 2124.80
Price of ‘RELIANCE’ from 29 7-7-2021 2127.75 2127.75 2098.00 2110.05
June 2021 to 19 July 2021. 8-7-2021 2116.95 2116.95 2081.00 2092.60
9-7-2021 2088.00 2091.70 2066.10 2071.20
12-7-2021 2079.75 2101.50 2074.50 2084.10
13-7-2021 2100.00 2103.50 2088.05 2099.70
14-7-2021 2100.35 2106.85 2081.25 2086.00
15-7-2021 2095.00 2095.00 2078.50 2082.35
16-7-2021 2087.75 2114.75 2087.60 2112.40
19-7-2021 2100.00 2124.00 2092.25 2098.95
 DATE OPEN HIGH LOW CLOSE
29-6-2021 203.60 205.30 203.15 203.30
30-6-2021 204.30 204.40 202.55 202.70
1-7-2021 202.90 203.80 202.15 203.00
2-7-2021 203.30 203.70 202.25 202.40
5-7-2021 203.00 204.10 202.70 203.65
6-7-2021 203.25 203.80 202.25 202.50
7-7-2021 202.50 205.20 202.30 203.75
Price of ‘ITC’ from 29 June
8-7-2021 203.50 204.50 201.80 202.00
2021 to 19 July 2021.
9-7-2021 202.00 202.35 200.90 201.35
12-7-2021 202.00 202.55 200.95 201.10
13-7-2021 202.00 202.20 201.35 201.85
14-7-2021 201.85 205.15 201.70 204.10
15-7-2021 204.40 208.50 202.90 206.25
16-7-2021 207.70 209.65 207.20 207.90
19-7-2021 206.80 209.50 206.35 207.75
 DATE OPEN HIGH LOW CLOSE
29-6-2021 673.25 681.50 673.10 677.60
30-6-2021 678.05 683.45 674.25 675.45
1-7-2021 675.00 685.80 673.70 684.15
2-7-2021 685.50 689.50 678.30 681.25
5-7-2021 684.00 684.95 678.60 680.20
Price of ‘SUN PHARMA’ from
6-7-2021 678.00 683.00 672.40 673.25
29 June 2021 to 19 July 2021.
7-7-2021 668.00 682.00 666.10 680.10
8-7-2021 677.00 680.90 665.10 666.90
9-7-2021 666.50 672.30 664.20 667.90
12-7-2021 668.60 672.85 664.40 668.55
13-7-2021 670.30 689.35 669.00 683.00
14-7-2021 681.95 692.40 681.00 685.95
15-7-2021 686.00 688.20 681.30 683.00
16-7-2021 684.90 695.65 682.65 688.60
19-7-2021 678.05 691.50 678.05 689.25
 DATE OPEN HIGH LOW CLOSE
29-6-2021 1561.00 1573.65 1559.20 1563.05
30-6-2021 1572.05 1591.00 1572.05 1580.80
1-7-2021 1576.85 1576.85 1559.05 1560.40
2-7-2021 1558.95 1569.45 1542.60 1567.80
5-7-2021 1569.15 1585.00 1561.05 1578.95
6-7-2021 1573.70 1586.75 1557.10 1562.20
Price of ‘INFOSYS’ from 29
7-7-2021 1566.05 1570.55 1544.65 1564.60
June 2021 to 19 July 2021.
8-7-2021 1568.00 1576.00 1549.00 1560.75
9-7-2021 1556.00 1569.90 1551.00 1562.90
12-7-2021 1570.55 1578.00 1533.75 1547.85
13-7-2021 1556.40 1556.40 1536.30 1544.95
14-7-2021 1554.00 1583.80 1538.10 1576.90
15-7-2021 1557.90 1596.85 1556.00 1580.80
16-7-2021 1573.75 1574.65 1549.60 1555.45
19-7-2021 1544.70 1552.90 1537.55 1541.70
 DATE OPEN HIGH LOW CLOSE
29-6-2021 1507.00 1508.20 1492.15 1502.05
30-6-2021 1498.00 1509.00 1494.10 1497.90
1-7-2021 1502.00 1502.00 1483.00 1486.75
2-7-2021 1485.00 1489.25 1477.00 1480.40
5-7-2021 1489.95 1504.50 1484.55 1495.45
Price of ‘HDFC BANK’ from
6-7-2021 1497.00 1540.00 1496.00 1534.70
29 June 2021 to 19 July 2021.
7-7-2021 1534.00 1545.35 1527.70 1539.50
8-7-2021 1525.00 1537.70 1513.45 1520.45
9-7-2021 1512.55 1516.00 1497.50 1502.00
12-7-2021 1502.00 1502.00 1484.00 1487.00
13-7-2021 1496.10 1506.10 1484.10 1501.85
14-7-2021 1497.50 1507.35 1491.10 1499.15
15-7-2021 1505.00 1526.75 1499.65 1520.70
16-7-2021 1527.95 1529.95 1518.80 1522.35
19-7-2021 1487.00 1488.85 1466.00 1471.00
 PORTFOLIO
NAME OF BUY PRICE NO. OF AMOUNT SELLING PRICE CHANGE IN PROFIT/LOS
COMPANY [29-6-21] SHARES INVESTED [19-7-21] SHARE S
PRICE

RELIANCE 2090 5 10450 2120 +30 +150

ITC 204 40 8160 209 +5 +200

SUN PHARMA 680 15 10200 690 +10 +150

INFOSYS 1560 6 9360 1550 -10 -60

HDFC BANK 1495 8 11960 1485 -10 -80

TOTAL 74 50130 +360

In this portfolio an amount of Rs. 50000 /- (approx.) is invested in above 5 stocks on 29 th June, 2021.
The portfolio is maintained for a period of 15 working days as per Stock Exchange[NSE] from 29 th June 2021 to 19th
July 2021.
After 20 working days portfolio has gained a profit of Rs. 360/-.
 CONCLUSION
FROM THIS PROJECT I CONCLUDE THAT STOCK EXCHANGE AND MARKET
REQUIRE A LOT OF MONEY AND IT IS A COMPLICATED PROCESS. STOCK
EXCHANGE IS CARRIED THROUGH LOT OF INTERMEDIARIES SUCH AS BROKERS,
ETC. IT IS DAILY OBSERVATION OF SHARES OF DIFFERENT COMPANIES AND
NOTICE THE CHANGES OCCURRING DUE TO CHANGE IN SEASON, WEATHER,
POLICIES OF GOVERNMENT, ETC. I HAVE LEARNT ABOUT STOCKS AND STOCK
MARKET OF INDIA, OF WHICH NSE AND BSE ARE THE MAJOR ONES. WE HAVE
ALSO SEEN THE FEATURES AND CHARACTERISTICS OF STOCK EXCHANGE
ALONG WITH THE POWERS OF SEBI. I HAVE LEARNT MANY NEW THINGS ABOUT
THE WORKING OF SHARES AND STOCK MARKET FROM THIS PROJECT AND HAS
INCREASED MY KNOWLEDGE REGARDING THE WORKING OF STOCK EXCHANGE.