Woc Modified Final

A BRIEF OVERVIEW ON SENSEX & NIFTY …!!!

COMPASS ….. What is sensex & nifty ? Sensex calculation methodology . List of 30 companies of BSE . List of 50 companies of NSE . Market capitalization . Free float market capitalization . How to make money in stock market? 3 imp things to follow as new investor . Stock picking Bear market Bull market 



What is Sensex & Nifty ? Sensex is an index, bench mark or indicator which gives a general idea about weather most of the stocks have gone up or down of BSE. Situated at Bombay. Nifty is indicator of stocks of all major companies of the NSE (Bombay). Situated at Bombay. Beside BSE & NSE there many other type of indexes BSE mid-cap index Index for metal stock Index for FMCG

FACTS ABOUT BSE & NSE  Oldest stock exchange in

 2nd largest exchange in India.  NSE takes the 14th position

Asia.  Today, BSE is the world's in the top 40 futures number 1 exchange in exchanges in the world. terms of the number of  listed companies & worlds  NSE nifty is a value weighted 5th in transaction numbers. index composed of 50  BSE Sensex is a value stocks. weighted index composed  FREE FLOAT MARKET of 30 stocks. CAPITALIZATION .  SENSEX is calculated using  the "Free-float Market  Launch in 1992 Capitalization“ methodology.  The base period of sensex is

Sensex calculation methodology : To show up & down of stocks accurately by

calculating 30 diff. BSE listed companies. It is calculated using FREE FLOW MARKET CAPITALIZATION method. MARKET CAPITALISATION:CAPITALISATION It is simply worth of a company in terms of shares. MC = Current share price No of shares issued. 



Name   Sector   SENSEX and List of 30 companies ACC Housing Related Ambuja Cements Ltd Housing Related Bajaj Auto Transport Equipments BHEL Capital Goods Bharti Airtel Telecom Cipla Healthcare Dr. Reddy’s Laboratories** Healthcare Grasim Industries Diversified HDFC Finance HDFC Bank Finance Hindalco Industries Metal, Metal Products & Mining Hindustan Lever Limited FMCG ICICI Bank Finance Infosys Information Technology ITC Limited FMCG Larsen & Toubro Capital Goods & Construction. Mahindra & Mahindra Limited Transport Equipments Maruti Udyog Transport Equipments NTPC Power ONGC Oil & Gas Ranbaxy Laboratories Healthcare Reliance Communications Telecom Reliance Energy Power Reliance Industries Oil & Gas Satyam Computer Services Information Technology States Bank of India Banking & Finance Tata Consultancy Services Information Technology Tata Motors Transport Equipments Tata Steel Metal, Metal Products & Mining Wipro Information Technology

Companies that form the NSE Nifty Index 1 . Asia Brown Boveri Ltd 26 . Infosys Technologies Ltd 



2 . Associated Cement Companies Ltd 3 . Bajaj Auto Ltd 4 . Bharat Heavy Electricals Ltd 5 . Bharat Petroleum Corporation Ltd 6 . Bharti Tele - ventures Ltd 7 . Britannia Industries Ltd 8 . Cipla Ltd 9 . Colgate - Palmolive India Ltd 10 . Dabur India Ltd 11 . Dr Reddy's Laboratories Ltd 12 . Gas Authority of India Ltd 13 . Glaxosmithkline Pharmaceuticals India Ltd 14 . Grasim Industries Ltd 15 . Gujarat Ambuja Cement Ltd 16 . HDFC Bank Ltd 17 . HCL Technologies Ltd 18 . Hero Honda Motors Ltd 19 . Hindalco Industries Ltd 20 . Hindustan Lever Ltd 21 . Hindustan Petroleum Corporation Ltd 22 . Housing Development Finance Co . Ltd 23 . ICICI Banking Corporation Ltd 24 . Indian Hotels Company Ltd 25 . Indian Petrochemicals Corporation Ltd

27 . 28 . 29 . 30 . 31 . 32 . Ltd 33 . 34 . 35 . 36 . 37 . 38 . 39 . Ltd 40 . 41 . 42 . Ltd 43 . 44 . 45 . 46 . 47 . 48 . 49 . 50 .



ITC Ltd Mahanagar Telephone Nigam Ltd Mahindra & Mahindra Ltd Maruti Udyog Ltd National Aluminium Company Ltd Oil & Natural Gas Corporation Oriental Bank of Commerce Punjab National Bank Ranbaxy Laboratories Ltd Reliance Energy Ltd Reliance Industries Ltd Satyam Computer Services Ltd Shipping Corporation of India State Bank of India Steel Authority of India Ltd Sun Pharmaceutical Industries Tata Chemicals Ltd Tata Iron & Steel Company Ltd Tata Motors Ltd Tata Power Ltd Tata Tea Ltd Videsh Sanchar Nigam Ltd Wipro Ltd Zee Telefilms Ltd

Free float Market capitalization Only open market shares that are free for

trading by anyone r called “FREE FLOAT” shares. A company has to submit complete report about “company share” to BSE on quarterly basis. BSE will decide the “FF Factor” of company. FFMC= Free flow factor Market Capitalization FFMC is value of shares of the company in open market. 

How to make money in share market Stocks:- it is a share in the ownership of a

company What does owner of a company give u?  a) U r one of many owners of a company & u ve a claim to everything the company owns.  b)Stock certificate.  c)Demat a/c or dematerialize a/c.  d)Claim on assets is only relevant in case of bankrupt/liquidity.  e)Stock is a limited liability.

Why does a company issue stock? When a company would like to grow, it issues stocks to raise funds and pay for ongoing business activities It is popular because: 

 The company does not have to repay the

money.  Paying dividends is optional. Dividends are distributions of earnings paid to

stockholders



3 i mp things to follow as new investor

orgettable basics” before entering.

der “tips” that tell you about “hot stocks”. Co own brain.

ey u can afford to lose.

STOCK PICKING Market price of stock tends to move towards its

real value/intrinsic value. If real value is above MP- investors would purchase the stock coz stock price would rise & move towards its “Real value”. If real value is below MP- investors would sell the stock coz stock price is going to fall & come closure to its “Real value”.

BULL MARKET

generally rising stock prices, high economic growt

BEAR MARKET

ed by falling stock prices, bad economic news, and

REFERENCE www.bseindia.com www.nseindia.com www.vangal.com/sensex www.nseindia.com www.wiki.answers.com www.indiahowto.com www.stockmarketbasics.com www.moneycontrol.com 

CONCLUSION

QUESTIONS?