PRESENTATION ON SIP PROJECT REPORT

TRADING
IN
STOCK EXCHANGE
(A GREAT GIZMO OF INVESTMENT)

J AYA N TA K U M A R B I S O I
16/06/DBM/09
3 RD S E M E S T E R
D E P T. O F B U S I N E S S M A N A G E M E N T
CONTENTS
1. OBJECTIVES
2. STOCK MARKET
3. STOCK EXCHANGES IN INDIA
4. TRADING IN STOCK EXCHANGE
5. MARKET STUDY
6. FINDINGS
OBJECTIVES
Why stock market is one of the best options for long term investment ?
how to trade ?
Which companys stocks should one invest and when should one invest ?
How to keep a track of the market movement without going through the price of each share
in your portfolio ?
 What is Share/stock/equity ?
Shares represent a fraction of ownership in a business. The common feature of all these is equity
participation. Different classes of shares have different voting rights.
Ownership of shares is documented by a legal document that specifies the amount of shares
owned by the shareholder, and other specifics of the shares, such as the par value or the class of
the shares (if any).
These days these stock certificates have been dematerialized.(No physical document!)
 What is stock market ?
According to securities regulation act, 1956 :-
Stock exchange is defined as an association , organization , or a individual which is
established for the purpose of assisting , regulating , and controlling business in buying
,selling and dealing in securities.
Provides service to stock brokers & traders to trade stocks ,bonds and securities.
Stock exchanges helps the companies to raise their fund.
Important Function of Stock Exchange
Provide central and convenient meeting places for sellers and buyer of securities
Government capital-raising for development projects
Mobilizing savings for investment
Facilitating company growth through acquisitions
Creating investment opportunities for small investors
Help capital formation
Help companies and government to raise funds from the investors
Provide forecasting service
Stock Exchanges in India
There are 22 stock exchanges in India. But, two of them are biggest.
NSE (National stock exchange) - is the 9th largest stock exchange in
the world by market capitalization and largest in India by daily turnover
and number of trades, for both equities and derivative trading.
Stock indexes are S&P CNX Nifty, CNX Nifty Junior, S&P CNX 500

BSE (Bombay stock exchange) - is the oldest stock exchange in Asia

with a rich heritage of over 137 years of existence.
Stock index are BSE SENSEX, BSE Small Cap, BSE Mid-Cap, BSE 500
 Importance of Indices
It provide a yardstick with which investors can compare the performance of their individual
stock portfolios.
It acts as a forecasting tool. Studying the historical performance of the stock market indexes,
investors can forecast trends in the market.
The market indexes provide an historical perspective of stock market performance.
Regional stock exchange
Ahmadabad Delhi
Bangalore Guwahati
Bhubaneswar Hyderabad
Calcutta Jaipur
Ludhiana
Cochin
Madhya Pradesh
Coimbatore Madras
Mangalore Magadh
Meerut
OTC Exchange Of India
Pune
Saurashtra Kutch
Uttar Pradesh
Vadodara
 Stocks which represent both NSE Nifty50 and BSE SENSEX
Adani Ports Infosys Ltd.

Asian Paints Ltd. ITC Ltd.

Axis Bank Ltd. NTPC Ltd

Bajaj Auto Ltd Oil and Natural Gas Corporation Ltd

Bharti Airtel Ltd Power Grid Corporation of India

Cipla Ltd Reliance Industries Ltd

Coal India Ltd State Bank of India

Dr. Reddy's Laboratories Ltd Sun Pharmaceutical Industries Ltd

GAIL (India) Ltd. Tata Motors Ltd

HDFC Bank Ltd. Tata Steel Ltd

Hero Motocorp Ltd. Tata Consultancy Services Ltd

Hindustan Unilever Limited Wipro Ltd

ICICI Bank Ltd

Trading in Stock Market
The shares of a company are in general be transferrable from one shareholder to another. This
leads to buying and selling of shares termed as trading.
The market regulator, the Securities and Exchange Board of India (SEBI), has made it
compulsory to open the Demat account if you want to buy and sell stocks.
A person want to buy/sell stocks in the stock market has to first place his/her order with a
broker or can do themselves using online trading systems.
 What is Demat account ?
DEMAT stands for DEMATerialization. It is process in which physical paper shares are
converted into paperless (computerized) form.
In India there are two Depository organizations called NSDL (National Securities Depository
Ltd.) & CDSL (Central Depository Services India Ltd.)
Brokers and most of Banks provides facility to open Demat account. The banks which gives
facility of Demat a/c in India is
ICICI Bank
Citi Bank
Bank of Baroda
SBI
 Stock Broker
A stockbroker is person who is licensed to trade in shares.
Brokers also have direct access to the share market and can act as your agent in share
transactions.
For this service they charge a fee i.e. brokerage.
They can also offer additional services like advice on shares, debentures, government bonds
and listed property trusts and non-listed investment options (cash management trusts, property
and equity trusts.
Important Terms In Stock Market/Trading
Opening price :- The stock price in beginning of Day(i.e. in morning).
Intraday High :- The stock price reached at the highest level in a day.
Intraday Low :- The stock price reached the lowest level in a day.
Closing price :- The stock price at which it remains after the end of market
timings or the final price of the stock when the market closes for a day.
Bid :- The Buying price is called as Bid price.
Offer :- The selling price is called offer price.
Kinds of Trading
Intra-day trading
Buying and Selling on the same day.
Brokerage will be different for intra-day.

Delivery based trading

Buying and Selling are on different days.
Brokerage will be higher than intra-day.
Trading Procedure
1. Selection of broker
2. Opening Demat a/c with depository
3. Placing the order
4. Executing the order
5. Settlement
i. One the spot settlement
ii. Forward settlement
Market Study For Trading
Fundamental analysis
Analysing a stock based on the fundaments of the country, the sector, and the company individually.
It includes going through balance sheet and profit-loss statement of the individual company and checking
various ratios.
EPS : PAT Dividend/ No of shares
PE : Present share Price / EPS
P/BV : Present share price / Book value

Technical analysis
Forecasting the future direction of prices through the study of past market data, primarily price and
volume. In its purest form, technical analysis considers only the actual price and volume behaviour of the
market or instrument.
FINDINGS
for investment, stock market is a great opportunity.
Technical analysis is a particular approach to investing.
The tool they use for making predictions is the chart.
Technical analysis and fundamental analysis are two very different approaches, but one does not
completely exclude the other.
Thank you!
Happy Trading