final presentation on stocks

8/10/2019 Final Presentation on Stocks

1/49

PRESENTATION ONONLINE TRADING AND

STUDY OF INDIAN STOCK


2/49

WHAT IS A STOCK

MARKET?

Place where business of buying andselling stock takes place

The stock market is not a specicplace, though some people use theterm "Dalaal Street


3/49

WHAT IS A STOCK?

Stock is a share in the ownership of acompany.

t represents a claim on the company!sassets and earnings

hether you say shares, e#uity orstock, it all means the same thing.


4/49

WHY COMPANIES ISSUE

STOCK?

hen a company would like to grow, itissues stocks to raise funds and pay for

ongoing business acti$ities

t is popular because%

The company does not ha$e to repaythe money

Paying di$idends is optional

Di$idends are distributions of earningspaid to stockholders


5/49

HOW COMPANIES RAISE

THE CAPITAL

&y following mean's

Debentures (#uity

)oan's


6/49

MARKET SEGMENTS

Primary market

*+hannel for creation of new securities

Secondary market

*The new securities issued in theprimary

market are traded the secondary market


7/49

STOCK EXCHANGE WORLD

WIDE

ew -ork Stock (change */nited States

0SD01 2ational 0ssociation of SecurityDealers 0utomated 1uotations3 * /nitedStates

Shanghai Stock (change * +hina

)ondon Stock (change * /4


8/49

STOCK EXCHANGE IN

INDIA

&S(2&56&0- ST5+4

(7+809( 3

S(20T50) ST5+4

(7+809(3


9/49

BOMBAY STOCK EXCHANGE

(BSE) :ollowing is the timeline on therise and rise of the Sensethrough ndian stock markethistory.

1830's&usiness on corporatestocks and shares in &ank and+otton presses started in&ombay.

1860-1865+otton price bubbleas a result of the 0merican +i$ilar

1870 - 90'sSharp increase inshare prices of ;ute industriesfollowed by a boom in tea stocksand coal

1978-79&ase year of Sense,
http://en.wikipedia.org/wiki/Sensexhttp://en.wikipedia.org/wiki/Sensex


10/49

NATIONAL STOCK EXCHANGE

(NIFTY) o$ember >? as a ta*

paying company

n 0pril >@, it wasrecogniAed as a

stock echange.
http://en.wikipedia.org/wiki/Stock_exchangehttp://en.wikipedia.org/wiki/Stock_exchange


11/49

INDEX

S(S(7

Sense is an inde, an inde is basically anindicator.

t gi$es you a general idea about whether most ofthe stocks ha$e gone up or most of the stocks ha$egone down. The sense is an indicator of all theprices of the ma;or companies of the &S(2&ombaystock echange3

t includes @= companies


12/49

NIFTY(NIFTY FIFTY)

ifty is an indicator of all the ma;orcompanies of S(.

The ifty inde is a composite of the top

B= stocks listed on the ational stockechange. t is a simplied tool whichhelps in$estors C ordinary people alike,understand what happens in the stockmarket C by etension, the economy.


13/49

MARKET TIMINGS

Trading on the e#uities segment takes placeon all days of the week 2eceptSaturdays and Sundays and holidays

declared by the echange in ad$ance3

The market timings of the e#uitiessegment are%

ormal market open % =>%


14/49

NEAT- CASH


15/49

NEAT-F&O


16/49

CIRCUIT BREAKERS

0n inde based market*wide circuit breaker system applies at threestages of the inde mo$ement either way at


17/49

SECURITIES AND EXCHANGE BOARD

OF INDIA (SEBI) S(& is the

Gegulator forthe Securities6arket in ndia.

5riginally set upby the9o$ernment of ndia

in HH, itac#uiredstatutory formin >?.
http://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Government_of_India


18/49

FUNCTIONS AND RESPONSIBILITIES

(SEBI)

S(& has to be responsi$e to the needsof three groups, which constitute the

market%

the issuers of securities

the in$estors

the market intermediaries.


19/49

HOW TO START?

5pen Demat 0Ic.

5pen Trading 0Ic.


20/49

HOW THE MARKET

WORK

S(

&roker&roker

Public Public


21/49

BLUE CHIP INDIANCOMPANIES

.B.


22/49

@= ST5+4 5: S(S(7

1. ACC 11.BHEL 21. SBI

2. GRASIM 12.GUJ AMBUJA 22.INFOSYS

3. HINDALCO 13.ICICI BANK 23.DR.REDYS

4. HLL 14.RANBAXY 24.SATYAM

5. ITC 15.REL 25.CIPLA

6. L&T 16.R.COM 26.AIRTEL

. RIL 1.HDFC BANK 2.ONGC

!. TATA MOTORS 1!.HDFC 2!."IPRO

#. TATA STEEL 1#.MURTUI 2#.NTPC

1$. BAJAJ AUTO 2$.TCS 3$.HERO HONDA


23/49

B= ST5+4 5: :T-

1.ACC 11.GUJ AMBUJA 21.JET AIR"AYS

2.BAJAJ AUTO 12.HCL 22.ITC

3.BHEL 13.HDFC 23.L&T

4.BPL 14.HDFC BANK 24.MTNL

5.BHARTI AIRTEL 15.HERO HONDA 25.M&M

6.CIPLA 16.HINDALCO 26.MARUTI

.DABUR 1.HLL 2.ONGC

!.DR.REDDYS 1!.HPL 2!.OBC

#.GAIL 1#.ICICIBANK 2#.PNB

1$.GRASIM 2$.INFOSYS 3$.SBI


24/49

B= ST5+4 5: :T-

31.NATIONAL ALUMINIUM 41.TATA MOTORS

32.RANBAXY 42.TATA PO"ER

33.R.COM 43.TATA STEEL

34.REL 44."IPRO

35.RIL 45.%EE

36.SATYAM 46.SNL

3.SAIL 4.SIEMENS

3!SUN PHARMA 4!.INDIAN PETRO

3#.SUSLON 4#.ABB

4$.TCS 5$.GLAXO


25/49

SECTOR INDICATORS

. 6(T0) S(+T5G


26/49

&049 S(+T5G


27/49

+0PT0) 955DS S(+T5G


28/49

+(6(T S(+T5G


29/49

G(0) (ST0T( S(+T5G


30/49

:G0STG/+T/G(S(+T5G


31/49

P5(G S(+T5G


32/49

T()(+56 S(+T5G


33/49

0/T565&)(S S(+T5G


34/49

6(T0) S(+T5G


35/49

:5G60T5 T(+85)59-S(+T5G


36/49

:0+T5GS 0::(+T9 ST5+460G4(T

1. INFLATION

2. MARET TRENDS

3. !LOBAL MARETS

". !O#T. POLICIES

5. FINANCIAL STATEMENT OF COMPANIES


37/49

INFLATION

INFLATION RATE CURRENT 12.1"

MAIN FACTOR CRUDE 1"7$ BARRAL

NO% CRUDE IS M&( )*+, 105$ BARRAL


38/49

FINANCIAL STATEMENT OFCOMPANIES

PG5:TS

)5SS(S

9G5T8


39/49

FACTORS AFFECTIN! STOCPRICE

:0+0) ST0T(6(T 5: +56P0(S

9G5T8 5: +5P0(S

5GD(G &554

6009(6(T

)0D &04

P5)+(S

P)0S


40/49

:S K(ST9 D0

1. FOREI!NECONOM

2 !RO%THRATE

DE#ELOPEDECONOM

LESSE/PANSION

2.INDIAN ECONOM

8.5 !RO%THRATE

DE#ELOPIN!ECONOM

MORE E+,s&,


41/49

DEMAT ACCOUNT


42/49

ILLE!AL TRADIN!SSTEM

Dabba System

Pri$ate 4arb System

Patiya System

&adla System


43/49

D0&&0 TG0D9 %

LThe illegal practice of buy/sale of securities outside theexchange mechanism without any documentary evidenceto relate such transactions.

L "Dabba Trading" also known as "Bucketing" is theprocess used by brokers to route their clients tradesoutside the !tock/ommodity exchange.

L#n such trading$ the broker either does not execute anytrade or matches and execute trades on its own terminal.


44/49

+0/98T D0&&0 TG0D9 %

Pradeep 4umar &ansal, who was the target of the Sebi*S( operation, was a fairly big sh in the dabba trade.8e operates from a non*descript address at &yculla incentral 6umbai, but his oMce, packed withsophisticated e#uipment and gadgetry, acts as the hubfor his nationwide operations.8is rm, &ansal Share$est Securities P$t )td has

multiple trading memberships on ndian stockechanges including% the ational Stock (change2deri$ati$es segment3, the nterconnected Stock(change of ndia and the +alcutta Stock (change. 8eis also a sub*broker to his own broking rm, earning

commissions on its deals. 2Sebi has now bannedromoters directors from actin as sub*brokers to their

S+06S +0PT0)


45/49

S+06S +0PT0)60G4(T8arshad 6ehta

8e was known as the !&ig &ull!. 8owe$er, his bull run did not last too long.8e triggered a rise in the &ombay Stock (change in the year >? bytrading in shares at a premium across many segments. Taking ad$antages ofthe loopholes in the banking system, 8arshad and his associates triggered asecurities scam di$erting funds to the tune of Gs E=== crore 2Gs E= billion3from the banks to stockbrokers between 0pril >< to 6ay >?.

8arshad 6ehta worked with the ew ndia 0ssurance +ompany before hemo$ed ahead to try his luck in the stock markets. 6ehta soon mastered thetricks of the trade and set out on dangerous game plan. 6ehta has siphonedoN huge sums of money from se$eral banks and millions of in$estors were

conned in the process. 8is scam was eposed, the markets crashed and hewas arrested and banned for life from trading in the stock markets.

8e was later charged with J? criminal oNences. 0 Special +ourt alsosentenced Sudhir 6ehta, 8arshad 6ehta!s brother, and si others, includingfour bank oMcials, to rigorous imprisonment 2G3 ranging from < year to


46/49

S+06S +0PT0)60G4(T%etan &arekh

%etan &arekh followed 'arshad (ehta)s footsteps to swindle corers of rupees from banks. *chartered accountant he used to run a family business$ +' !ecurities.

%etan however had bigger plans in mind. 'e targetted smaller exchanges like the *llahabad!tock ,xchange and the alcutta !tock ,xchange$ and bought shares in fictitious names.

'is dealings revolved around shares of ten companies like 'imachal -uturistic$ lobal Tele!ystems$ !!# 0td$ D!1 !oftware$ 2ee Telefilms$ !ilverline$ &entamedia raphics and!atyam omputer 3%45 scrips6.

%etan borrowed 7s 895 crore from lobal Trust Bank to fuel his ambitions. %etan alongwithhis associates also managed to get 7s 4$555 crore from the (adhavpura (ercantile o

operative Bank.

*ccording to 7B# regulations$ a broker is allowed a loan of only 7s 49 crore 37s 495 million6.There was evidence of price rigging in the scrips of lobal Trust Bank$ 2ee Telefilms$ '-0$0upin 0aboratories$ *ftek #nfosys and &admini &olymer.


47/49

ADVANTAGES OF ONLINE

TRADING.

I,s)+,) A44(ss

C&,(,(,4(

M&,()+ S+,s

#+( A::(: S(4(s.


48/49

DISADVANTAGES OF

ONLINE TRADING-

I,(s), +&,(

S(4)

P(s&,+;(: s(4(s


49/49

final presentation on stocks

Documents