...meant to capture the overall behaviour of equity markets. Stock market indexes are useful for a variety of reasons. Some of them are: • They provide a historical comparison of returns on money invested in the stock market against other forms of investments such as gold or debt. • They can be used as a standard against which to compare the performance of an equity fund. • It is a lead indicator of the performance of the overall economy or a sector of the economy • Stock indexes reflect highly up to date information • Modern financial applications such as Index Funds, Index Futures, Index Options play an important role in financial investments and risk management Further the different indices in the Indian makerts mainly in NSE and BSE are discussed. NATIONAL STOCK EXCHANGE THE BEGINNING In the fast growing Indian financial market, there are 23 stock exchanges trading securities. The National Stock Exchange of India (NSE) situated in Mumbai - is the largest and most advanced exchange with 1016 companies listed and 726 trading members. The NSE is...
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...INTRODUCTION Unprecedented globalizations have witnessed double digit economic growth resulting in fierce competition and accelerated pace of innovation. As a result inflow of Foreign Direct investments has become a striking measure of economic development in both developed and developing countries. FDI and FII thus have become instruments of international economic integration and stimulation. Fast growing economies like Singapore, China, Korea etc have registered incredible growth at onset of FDI. Though US captures most of the FDI inflows, developing countries still account for significant growth of FDI and rise in FII. FDI not only gives access to foreign capital but also provides domestic counties with cutting edge technology, desired skill sets, tools of innovation and other complementary skills. Apart from helping in creating additional economic activity and generating employment, foreign investment also facilitates flow of sophisticated technology into the country and helps the industry to march into advanced technology. A favorable business environment fostered Indian economy after 1991, when the government of India opened the door for foreign capital in the way of direct investment and through foreign institutional investors. The policies drafted to stimulate the flow of foreign capital in to India provided much needed impetus for India to emerge as an attractive destination for foreign investors. Consequently, the international capital inflows have been...
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...Markets Snehal Bandivadekar and Saurabh Ghosh * Derivative products like futures and options on Indian stock markets have become important instruments of price discovery, portfolio diversification and risk hedging in recent times. This paper studies the impact of introduction of index futures on spot market volatility on both S&P CNX Nifty and BSE Sensex using ARCH/GARCH technique. The empirical analysis points towards a decline in spot market volatility after the introduction of index futures due to increased impact of recent news and reduced effect of uncertainty originating from the old news. However, further investigation also reveals that the market wide volatility has fallen during the period under consideration. Surrogate indices like BSE 200 and Nifty Junior are introduced to evaluate whether the introduction of index futures per se has been instrumental in reducing the spot market volatility or the volatility has fallen in line with general fall in market wide volatility. The results using these surrogate indices show that while the ‘futures effect’ plays a definite role in the reduction of volatility in the case of S&P CNX Nifty, in the case of BSE Sensex, where derivative turnover is considerably low, its role seems to be ambiguous. JEL Classification: G1, G14, G15 Key words: Derivatives, index futures, stock markets, volatility, ARCH-GARCH Introduction A derivative is financial instrument whose value is ‘derived’ from another underlying security or a basket of securities...
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...SECURITY ANALYSIS AND POR TFOLIO MANAGEMENT LESSON 16: STOCK MARKET INDICES Stock market indices are the barometers of the stock market. They mirror the stock market behavior.With some 7,000 companies listed on the Bombay stock exchange, it is not possible to look at the prices of every stock to find out whether the market movement is upward or downward. The indices give a broad outline of the market movement and represent the market. Some of the stock market indices are BSE Sensex, BSE200, Dollex, NSE-50, CRISIL-500, Business Line 250 and RBI Indices of Ordinary Shares. Market Capitalisation (MC) = Number of shares × Prices of shares X = 100 × Rs. 20 = Rs. 2,000 Y = 200 × Rs. 30 = Rs. 6,000 Z = 250 × Rs. 40 = Rs. 10,000 Aggregate Market Capitalisation = Rs. 18,000. Index at period N = 100 Market Price at N + 1 X Share price = Rs. 25 Y Share price = Rs. 40 Z Share price = Rs. 50 Market capitalisation X = 100 × Rs. 25 = Rs. 2,500 Y = 200 × Rs. 40 = Rs. 8,000 Z = 250 × Rs. 50 = Rs. 12,500 Aggregate Market Capitaliation = Rs. 23,000 Index at period N + 1 = Rs. 23,000 × 100/18,000 N + 1 = 127.78 The weight may be the trading volumeof the particular scrip.When the index uses the trading volume as weight, on its shows the depth of the market in terms of trading volumes and conditions. All India Equity index of Financial Express with base year 1979 uses the trading volume of the scrip as weight. The Business Line - (BL) - 250 (Base January 17 1994 = 100) a comprehensive index comprising...
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...1st June: The Sensex closed below psychological mark of 16000 at 15965.16 down 253.37 points or 1.53%. The Nifty ends at 4841.60 down 82.65 points or 1.68%. The breadth of the market was negative with Advance Decline ratio at 1:2. About 836 shares advanced, 1820 shares declined, and 768 shares remain unchanged. A slew of bad economic cues from across the globe didn't help Indian equities either. Reports of monsoon rains over India's mainland will be delayed by about four days also weighed on sentiment. A whole host of disappointing macro economic data including weak PMI data from many countries across the globe dragged the bourses down. BSE FMCG was almost flat with a gain of 0.13%. TATA Coffee closed at 839.85 losing 1.53% along with market sentiments. Volume of TATA Coffee was just 7978 as compared to the average volume of 61877. 8th June: Today, the BSE benchmark recovered 234 points from intraday low of 16,485.02, before closed up 69.82 points at 16,668.87. Meanwhile, the NSE benchmark rebounded from intraday low of 4,994.80, which ended up 18.70 points at 5,068.35. The BSE Sensex and NSE Nifty rebounded quite smartly in late trade on Friday that helped them to close higher in all sessions of the week. The market saw highest ever weekly absolute gains in 2012, with the Nifty rising 4.7% and the Sensex 5%. Recovery in European markets and Indian rupee, and short covering helped the market to bounce back today. Looking at the sharp recovery, it seems that the market...
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...A Study of Monetary Policy Impact on Stock Market Returns (With Special Reference to Nifty and Bank Nifty) A PROJECT REPORT Submitted by Chintan Divetia (1011416026) Submitted to Mr. Raviraj Gohil Assistant Professor Department of Finance In partial fulfilment for the award of the degree of POST GRADUATION DIPLOMA IN MANAGEMENT in Finance Shanti Business School, Shela, Ahmedabad. ACKNOWLEDGEMENT It was a great opportunity for me to work with Sharekhan Ltd., pioneers in the field of Stock Market. I am extremely grateful to all those who have shared their expertise and knowledge with me and without whom the completion of this project would have been virtually impossible. Firstly, I would like to thank my Company Mentor Mrs. Raina Vashi who has been a constant source of inspiration for me during the completion of this project. I would also like to thank Mr. Henal Bardoliwala, Relationship Manager of Sharekhan Ltd., for supporting me to complete my project. I am thankful to all staff of Sharekhan Ltd for their valuable support and cooperation during the entire tenure of this project. I thank my faculty guide Mr. Raviraj Gohil who helped me out at every critical situation that i faced in my project and gave us his valuable advice to solve problems. EXECUTIVE SUMMARY I feel great pleasure by presenting this project. As a student of PGDM of ‘Shanti Business School Ahmedabad’, there is a subject of partial training followed...
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...! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! Rohan C Sahil Scott Sai Vishnu M N Sameer Sharma Sreejith Viswanath DM17242! DM17243! DM17244! DM17245! DM17246! 1 ! Voltas Limited was incorporated in India on 06/09/1954. It is India's largest air conditioning company, and one of the world's premier engineering solutions providers and project specialists. Voltas Limited offers engineering solutions for a wide spectrum of industries in areas such as heating, ventilation and air conditioning, refrigeration, electro-mechanical projects, textile machinery, mining and construction equipment, water management & treatment, cold chain solutions, building management systems, and indoor air quality.! The shareholders of Voltas are promoters, institutional investors, other investors and general public.! The promoter group is the major shareholder with a holding of 30.3% stake in Voltas Limited. The Institutional shareholders include Mutual Funds and UTI with 12.78%, Banks and insurance companies with a combined holding of 14.85% and the FII’s with a shareholding of 21.54%. Other investors have a share of 5.76%. The general public hold 15.07% stake in Voltas Limited.! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! 2 Share Holding Details ! Share Holding Pattern as on : 30/JUN/2015 31/DEC/2014 1.00 Face Value 31/MAR/2015 1.00 1.00 No. Of Shares ...
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...OTHER SELECTED VARIABLES WITH NIFTY” Submitted to S.R. LUTHRA INSTITUTE OF MANAGEMENT IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE AWARD FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION In Gujarat Technological University UNDER THE GUIDANCE OF Faculty Guide: Company Guide: Ms.Swapna Nair Mr. Mukesh Vishwakarma Assistant Professor Branch Manager Submitted by Mr. Kalpesh R. Ukani [Batch No. 2014-16, Enrollment No. 147500592114] MBA SEMESTER III S.R. LUTHRA INSTITUTE OF MANAGEMENT – 750 MBA PROGRAMME Affiliated to Gujarat Technological University Ahmedabad July, 2015 Company Certificate This is to certify that Mr. Kalpesh R. Ukani from S.R. LUTHRA INSTITUTE OF MANAGEMENT, have carried out the research on the subject titled “TO STUDY THE DYNAMIC RELATIONSHIP AMONG FIIs, MUTUAL FUND EQUITY INVESTMENT AND OTHER SELECTED VARIABLES WITH NIFTY” at ICICI SECURITIES under the supervision of Mr. Mukesh Vishwakarma, from 8th June 2015 to 17th July, 2015. I also certify that, the above mentioned student has carried the research work satisfactorily. Place: - Surat Date: - _________ Mr. Mukesh Vishwakarma (Branch Manager) Student’s Declaration I, Mr. Kalpesh R. Ukani , hereby declare that the report for Summer Internship Project entitled “TO STUDY THE DYNAMIC RELATIONSHIP AMONG FIIs, MUTUAL FUND EQUITY INVESTMENT AND OTHER SELECTED VARIABLES WITH NIFTY” is a result of my own work and...
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...market dropped by 10% or 20%, circuit breakers would come into effect. In the US markets, SEC can halt trading if the DJIA drops by 10% before 2.30pm. If the DJIA drops 30% at any pint in the day, trading for the day ends. DJIA has dropped more than 10% only three times in its history. CIRCUIT BREAKER in INDIA. They were introduced in 2001 by the SEBI ( Securities & Exchange Board of India). They will apply if the Bombay Stock Exchange or National Stock Exchange moves by 10%, 15% or 20%. On May 18, 2009, trading on India’s Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) was halted for the full day as the markets hit the 20 per cent circuit breaker after they reopened at 11:55 am. The Sensex zoomed 2,110 points to 14,284 while the Nifty touched 4,323, up 651 points. This was for the first time trading was halted on the BSE and NSE and also the biggest ever single-day gains....
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...------------------------------------------------- Top of Form | | New Member FAQ | Forums | Earn Revenue | Posting Guidelines | Help Topics | Admissions | | | Awards & Gifts | | | | Login Register | Resources | Practice Tests | Ask Experts | Question Papers | Jobs | Universities | Colleges | Courses | Schools | Training | | Gift Shop | Bookmarks | Reviews | Learn English | Social Hub | Links | New Posts | My India | Members | Polls | | | Active Members Today * R Pramod (199) * Ajay (121) * Abhinav (75)Last 7 Days * R Pramod (1735) * Sukhdev Singh (962) * Pramod (598)more... | Impact of Foreign Institutional Investors on Indian Stock Market Posted Date: Total Responses: 0 Posted By: hardeep Member Level: Silver Points/Cash: 10 | | CHAPTER I INTRODUCTION 1.1 INTRODUCTION 1.1.1 FOREIGN INSTITUTIONAL INVESTORS FII is defined as an institution organized outside of India for the purpose of making investments into the Indian securities market under the regulations prescribed by SEBI. ‘FII’ include “Overseas pension funds, mutual funds, investment trust, asset management company, nominee company, bank, institutional portfolio manager, university funds, endowments, foundations, charitable trusts, charitable societies, a trustee or power of attorney holder incorporated or established outside India proposing to make proprietary investments or...
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...INDEX FUNDS.. FM n FS PROJECT Active and Passive Management Before we get into the details of index funds, it's important to understand the two different styles of mutual-fund management: passive and active. Most mutual funds fit under the active management category. Active management involves the art of stock picking and market timing. This means the fund manager will put his/her skills to the test trying to pick securities that will perform better than the market. Because actively managed funds require more hands-on research and because they experience a higher volume of trading, their expenses are higher. Passively managed funds, on the other hand, do not attempt to beat the market. A passive strategy instead seeks to match the risk and return of the stock market or a segment of it. You can think of passive management as the buy-and-hold approach to money management. Defn- An index fund a collective investment scheme that aims to replicate the movements of an index of a specific financial market, or a set of rules of ownership that are held constant, regardless of market condition. An index fund is a mutual fund which merely invests in the securities in the index. It is passive, in the sense that absolutely no effort is made to produce results better than the index. HISTORY: Index funds haven't been around forever -- how did they come about? Long ago, there was a student at the University of Chicago who studied modern ideas of finance taught...
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...32 RNI No : GUJENG / 2008 / 24320 8 4th Oct. to 10th Oct. 2010 Rs. 12/- CEBBECO, Oberoi Realty and B.S. Trans enters the market this week The listing of Carrer, EROS and Microtech may be most sensational How much the IPOs would be oversubscribed? What about refund? What is the possibility of allotment and listing price? Samtex Fashions Ltd. (BSE Code : 531206) (Rs. 33) In view of recent floods in Pakistan, rice crop there is likely to suffer and since Pakistan is one of the biggest exporters of rice, Indian rice exporters should gain due to likely fall in Pakistan's rice exports. Moroever, there is growing fancy agri-based companies. Hence, the recommendation to buy Samtex Fashions (name appears a misnomer as presently, garment business constitutes only tiny %age of its total business) as scrip is available at extremely low PE Ratio and has high book value. his Delhi based company was originally incorporated for garment business. However, now garment business accounts for hardly 10% of total turnover. Company has set up 3 rice mills For More details refer PrimaryMarket (Center Page) Jay Bharat Maruti (BSE Code : 520066) (Rs. 73) Belonging to Arya group, Jay Bharat Maruti is one of the oldest Autoancillaries of Maruti Udyog and has emerged as a constantly growing autoancillary. Set up in 1987, Jay Bharat Maruti has 2 factories in NCR region with capacity to manufacture more than 70,000 parts everyday. Its products are mainly sheet components whcih include White/Skin...
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...Sensex: 16008.34-158.79 Nifty: 4805.10-46.20 USD: 52.09-0.14 Important News Sensex in red; Bharti Airtel, Reliance Industries, Tata Power down MUMBAI: The Bombay Stock Exchange's Sensex failed to hold on to intraday gains and slipped back in the negative territory due to lack of buying support near higher levels. According to dealers, the market is likely to remain range bound ahead of Q2 GDP figures to be released Wednesday. The GDP for quarter ended September is expected to have slipped below 7 per cent. At 1 pm; the Sensex was at 16095.33, down 71.80 points or 0.44 per cent. The 30-share index touched intraday low of 15995.57 and high of 16210.37. The National Stock Exchange's Nifty was at 4832.60, down 18.70 points or 0.39 per cent. The broader index touched a high of 4866.10 and low of 4802.85 in trade so far. BSE Midcap Index was up 0.17 per cent and BSE Small cap Index moved 0.25 per cent higher. Amongst the sectoral indices, BSE Oil gas Index was down 1.15 per cent, BSE IT Index declined 0.70 per cent and BSE Realty Index declined 0.61 per cent. BSE Healthcare Index was up 0.52 per cent, BSE Auto Index gained 0.34 per cent and BSE FMCG Index advanced 0.19 per cent. Bharti Airtel (-3.30%), Reliance Industries (-1.89%), Tata Power (-1.65%), Infosys...
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...Derivative Market – A Case Study on NSE A Report Submitted as per the curriculum of the Master in Business Administration Under Biju Patnaik University of Technology, Rourkela, Orissa. By L Rama kumari Roll No.: 200960712 Regd. No.: 0906202013 [pic] March 2011 Under the Guidance of Mr. Shom Prasad Das NATIONAL INSTITUTE OF SCIENCE & TECHNOLOGY Palur Hills, Berhampur- 761008, Orissa, India DECLARATION I, L rama kumari, student of 2009-11 batch of NIST, Berhampur do here by declare that the report entitled “Derivative Market :A Case Study on NSE” that has been submitted by me as a partial fulfillment of the degree of MBA. This report is my own work and no part of this project has been ever submitted by me for any other purpose. I declare that the work has been carried out to the best of my knowledge and belief and according to my capacity and capability. Date: Place: L Rama kumari ACKNOWLEDGEMENT I would like to take this opportunity to thank all those individuals whose valuable contribution in a direct or indirect manner has gone into the making of this dissertation a tremendous learning experience for me. I take this privilege to express my heartfelt gratitude to our Hon. Director Prof. Sangram Mudali, Hon. Batch co-coordinator Mr.Chinmaya Sahu for encouraging doing this dissertation as a part of curriculum. I would like to express sincerely my deep...
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...A PROJECT REPORT ON “Analysis of derivative segment (Future & Options Market) of capital market” SUBMITTED BY: RAVINDER SINGH NEGI NRS/011304 In the partial fulfillment of the requirement as per THE INSTITUTE OF COST AND WORKS ACCOUTANT OF INDIA Institute of Cost and Works accountant of India Delhi Office 3, Institutional Area Lodhi Road, New Delhi - 110003 Phones: 011-24622156, 24521492 Fax: 011-43583642, 24622156, 24618645 DECLARATION I hereby declare that the Project report has been prepared by me during the year 2011. In partial fulfillment of the requirement for the award of the degree of Institute of Cost and Works Accountant of India (NIRC). Ravinder Singh Negi Place:--New Delhi Date:--...
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