INDIAN EQUITY MARKET AN INTRODUCTION
AUTHORITIES
SEBI
NATIONAL STOCK EXCHANGE.
BOMBAY STOCK EXCHANGE.
IPO DIRECT OFFER TO PUBLIC. IPO CAN BE ISSUED ONLY BY PUBLIC LTD. CO. COMPANIES HAVE TO ISSUE RED HARRANT PROSPECTUS. FIRST IPO OF INDIAN HISTORY IS RELIANCE.
MARKETS
PRIMARY MARKET
SECONDARY MARKET
GREY MARKET
DERIVATIVES
NORMALLY USED AS HEDGING INSTRUMENTS. INTRUMENTS -FUTURES -OPTIONS ONLY PERMITED TO TRADE IN NSE. HELPFUL IN REDUCING RISK.
VARIOUS INVESTORS
INDIVIDUAL GOVERNMENT EG. L.I.C. FII (FOREIGN INSTITUTIONAL INVESTORS). FINANCIAL INSTITUTIONS BANKS COMPANIES
WORKING BOTH THE EXCHANGES WORK ON VPS TECHNOLOGY. FOR DELIVERY THERE IS A T+2 RULE IS APPLICABLE. PRICES ARE DECIDED ON REAL-TIME BASIS. DEMAND AND SUPPLY ARE THE FACTORS FOR DECIDING PRICE.
FACTORS FOR GROWTH/DECLINE
ANY GOOD/BAD NEWS ABOUT COMPANY. POLITICAL STABILITY/UNSTABILITY. INTERNATIONAL ECONOMY.
MARKET CAPITALISATION NSE
Market cap. ( INR Bn ) Market capitalisation (US$bn) Market cap % GDP (2008) Volume (million-30 day average) Value (US$m-30 day average)
BSE
42,588 45,091 1,071 85%
1,133 89%
493.7 350.4 2,697.9 1,222 0 Derivatives trading volume (options 494.9 and futures-INRbn-30d avg) Derivatives trading volume (options 11.9 and futures-US$bn)
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