Stock market

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Stock Indices
A stock market index is one which indicates the pattern of movements of the prices of a group of securities which are considered to be the representative sample of the entire stock market.

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Stock Indices
A stock market index is created by selecting a group of stocks that are capable of representing the whole market or a specified sector or segment of the market. The change in the prices of this basket of securities is measured with reference to a base period. There is usually a provision for giving proper weights to different stocks on the basis of their importance in the economy

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Significance of Stock Index

It is an invaluable guide to study the trend of growth patterns in the economy It is used to benchmark portfolio performance It helps to allocate scarce resources to the best performed companies reflected through best performed scrips.

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Stock Indices of BSE

1. BSE Sensex / BSE Sensitive Index Launched on 2nd January, 1986 Base year April 1979 composed of 30 stocks representing a sample of large, well established & financially sound companies selected from different industry groups. This index is available on online & is updated continuously.
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Stock Indices of BSE-contd.

2. BSE National Index: Base year: 1983-84 Originally included 100 stocks listed at 5 major stock exchanges- Mumbai, Kolkata, Delhi, Ahmedabad & Chennai. Renamed in Oct. 1986 as BSE-100 Now it is calculated by taking the prices of 100 stocks listed at BSE only
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Stock Indices of BSE- contd.

3. BSE 200
- May 1994 base year 1989-90 Consists of equity shares of 200 co.s selected on the basis of market capitalisation, volume of turnover & strength of the co.s fundamentals

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4. Dollex
- BSE- 200 expressed in dollars Useful to foreign investors BSE 200 is modified by dividing the current rupee market value by rupee-dollar conversion rate
5.BSE 500 Introduced in 1999- Base year 1999 Treated as a standard index covering all sections of the economy.
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6.BSE BANKEX -will track the performance of the leading banking sector stocks listed on the BSE Base date:1st Jan., 2002; 12 stocks that represent 90% of the total market capitalisation of all banking sector stocks listed on BSE are included.

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NSE INDICES
All NSE indices are prepared by the India Index Services & Products Ltd.(IISL), which is a joint venture of NSE, CRISIL and Standard & Poor. CNX stands for the following C stands for CRISIL N stands for NSE X stands for Index
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S & P with any index indicates that it is supported by Standard & Poor also.

NSE INDICES-contd.
1. 2. 3. 4. 5. 6. 7. Major CNX Indices are: S& P CNX Nifty S& P CNX Defty CNX Nifty Junior S& P CNX 500 Equity Index CNX Midcap 200 Index CNX Segment Indices NSE Government Security index
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1.S& P CNX Nifty

Popular index of NSE-introduced in April 1996 Base year: 1995(November) Base value: 1000 Comprises of well- diversified 50 stock indices representing 23 sectors of the economy. Of the total traded value of all stocks on the NSE, the total value of NIFTY stocks is about 70% Nifty represents about 59% of the total market capitalisation.

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2.S& P CNX Defty

Nothing but S&P CNX Nifty expressed in dollars Basically a dollar dominated index. Intended for foreign investors It is calculated as follows:

S& P CNX Defty = S& P CNX Nifty at time t x Exchange rate as on base date/ Exchange rate at time t It is computed at on-line Rupee-Dollar rate Base date: 3rd Nov.1995; base value: 1000
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3. CNX Nifty Junior

Launched in December, 1996 Comprises 100 most liquid assets in India. Stocks in CNX Nifty Junior are stocks with highest liquidity excluded from S&P CNX Nifty Base date : Nov.3,1996

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4.S& P CNX 500 Equity Index

Comprises 500 stocks covering 79 industries Co.s are selected on the basis of their market capitalisation, industry representation, trading interest & financial performance It covers 97% of the total turnover in BSE & 73% of total market capitalisation

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5.CNX Midcap 200 Index

Index for the stocks of the mid-cap co.s or medium sized capitalisation co.s It covers industries having market capitalisation between Rs. 150 crores & Rs.1000 crores. Represents 72% of market capitalisation of mid cap sector

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6.CNX Segment Indices. Reflects the stock market performance of the various segments of the Indian corporate sector like multinationals, banks,IT,energy, pharmaceuticals etc. 7. NSE Govt. Securities Index. Meant for all Govt. of India Bonds issued after April 1992 but redeemable after 1997. Base date: 1st Jan., 1997
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Important stock exchanges

BSE Over the Counter Exchange of India(OTCEI)
efficient services to investors,

the countrys first electronic exchange facilitates ringless, scripless trading was set up in 1992 with the name OTCEI

NSE
Pherwani Committee recommended, in 1991

was incorporated in 1992,

speed & efficiency, safety and market
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New York Stock Exchange(NYSE)

largest stock exchange in the world listing venue for the worlds leading large- and medium-sized companies

NASDAQ OMX
Second largest stock exchange in the world approximately 3,400 listed companies

Tokyo Stock Exchange Third largest stock exchange market in the world 2,292 companies which are separated into the First Section for large companies, the Second Section for mid-sized companies, and the others section for high growth startup companies Nikkei 225 Free Powerpoint Templates

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