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Stock Exchange Project

The project report titled 'A Study of Stock Exchange' by Sanket Bhimrao Ingale explores the structure and functioning of stock exchanges in India, focusing on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). It covers key topics such as stock market terminology, trading procedures, and the role of the Securities and Exchange Board of India (SEBI) in regulating the market. The report also includes a portfolio analysis of selected companies and highlights the importance of stock exchanges in raising capital and mobilizing investments.

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0% found this document useful (0 votes)
1K views29 pages

Stock Exchange Project

The project report titled 'A Study of Stock Exchange' by Sanket Bhimrao Ingale explores the structure and functioning of stock exchanges in India, focusing on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). It covers key topics such as stock market terminology, trading procedures, and the role of the Securities and Exchange Board of India (SEBI) in regulating the market. The report also includes a portfolio analysis of selected companies and highlights the importance of stock exchanges in raising capital and mobilizing investments.

Uploaded by

ingalesanket325
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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A

PROJECT REPORT
ON
“A STUDY OF STOCK EXCHANGE”

SUBMITTED BY:

SANKET BHIMRAO INGALE


SYBBA (SEMESTER-4)

SUBMITTED TO: -
SAVITRIBAI PHULE PUNE UNIVERSITY
FOR THE PARTIAL FULFILLMENT OF BACHELOR OF
BUSINESS ADMINISTRATION {BBA)

UNDER THE GUIDANCE OF


Prof. Pallavi Yeolekar

KTHM COLLEGE, NASHIK – 422004

2022-2023
CERTIFICATE

This is to certify that Mr. Sanket Bhimrao Ingale Roll no. (31) has worked and
duly completed her project work for the Degree of Bachelor of Business
Administration under the faculty of Commerce in the subject of Analysis of
Financial Statement and his project is entitled “A STUDY OF STOCK
EXCHANGE ” under my supervision.

I further certify that the entire work has been done by the learner under my guidance
and that no part of it has submitted previously for any degree of diploma of any
University.

It is his own work and facts reported by her personal findings and investigation.

Date: / /202

Mrs. Ashwini Kohak Dr. R D Darekar


HOD Principal

Prof. PALLAVI YEOLEKAR


Project Guide
ACKNOWLEDGEMENT

I take this opportunity to express my sincere gratitude to all who


have directly and indirectly contributed to the completion of my
project.
At the outset of this report I wish to thank the director of our
institute DR. R D Darekar, my sincere thanks to my project guide,
Prof. Pallavi Yeolekar for her constant guidance and support
through the project.
I would like to thank the placement department and faculty
members of KTHM College, Nasik. Lastly, I am grateful to my
parents who have been my mentor and motivators. I am also thankful
to my friends who have been directly or indirectly involved in
successful completion of this project.

SANKET B. INGALE
(SYBBA)
DECLARATION

I the undersigned hereby declare that the project report entitled “A


study of Stock Exchange” written and submitted by me to Savitribai
Phule Pune University in partial fulfilment of requirements for the
award of degree of Bachelor of Business Administration under the
guidance of Prof. Pallavi Yeolekar is my original work and
interpretations drawn therein are based on material collected by
myself.

Place- Nashik
SANKET B. INGALE
Date :-
INDEX
Sr no. Content Page
no.
1) Introduction 1

2) History Of Stock 2
Exchange
3) Stock Market 5
Terminology
4) Stock Market Timing 7-8
in India
5) Role of Stock 9
Exchange
6) SEBI 10-11

7) Trading Procedure 12-13


8) 25 Companies 14
Listed on Stock
Exchange
9) Portfolio of 5 Selected 15-20
Companies
10) Factor Affecting Stock 21-22
Prices
11) Conclusion 23
12) Bibliography 24
INTRODUCTION

A stock exchange or securities exchange. List a traders as facility


where stockbrokers and can buy and sell, shares of stock, bonds.
Securities, such and other financial instruments. Stock exchanges
may and also provide facilities for the issue. redemption of such.
securities and instruments. Securities traded exchange include
stock on a stock issued by listed companies, unit trusts, derivatives
and bends. Stock exchanges often function as. ice continuous
auction" markets. at central locations Such as of the which are the
floor exchange of by an electronic trading platform

To be able to trade a security on a stock exchange, the security must


be listed there. Initial Public Offerings of stocks and bands to
investors is primary market. done is done in the and subsequent
trading. in Secondary market.
HISTORY OF STOCK EXCHANGE

National Stock Exchange (NSE)

National Stock Exchange of India is the leading stock exchange of India,


located in Mumbai, Maharashtra. NSE was established in 1992 as the first
dematerialized. electronic exchange in the country. NSE was the first
exchange in the country to provide modern, fully automated a Screen-based
electronic trading system. which offered easy trading facilities. investors.
across the country. NSE is the world's 11th largest stock exchange
as of April 2018.

NSE's flagship index, the NIFTY 50 stock index is India and barometer used
extensively by investors in around the world. of the Indian Capital market.
The NIFTY 50 index 1996 by NSE launched in

NSE was set-up by group of leading. a Financial Institutions at the behest


Indian of Government of India to bring. the transparency Based the with an
them to the Indian capital market. recommendations laid out by Sherwani
committee, NSE was an established diversified shareholding comprising
domestic and global investors.

The exchange was incorporated in 1992 as a tax-paying company and was


recognized as a stock exchange in 1993 under the Securities Contracts Act,
1956, when the Prime Minister of India was P.V. Narasimha Rao and
Finance Minister was Manmohan Singh
NSE offers trading / investment in the following segments: -

Equity: Equity, Indices, Mutual fund, Exchange- Traded funds, IPOs,


Borrowings, etc.

Derivatives: Equity Derivatives, Currency Derivatives, Commodity


Derivatives, Interest Rate futures.

Debt: Corporate Bands, etc.

Now let us see the history of Bombay Stock Exchange situated in Mumbai,
Maharashtra, India.
BOMBAY STOCK EXCHANGE (BSE)

BSE Limited, formerly known. Bombay as an Indian Stock


Exchange Ltd., is Stock exchange located at Dalal Street, Mumbai.
Established in 1875, it is Asia's oldest stock exchange. The BSE is
the world's 10th largest stock exchange as of April 2018.

The BSE Asia. It is was the oldest exchange in all started in 1855,
when four Gujarati and an Parsi stockbroker. gathered under
banyan tree. in front of Mumbai's Town Hall. The location of these
meetings changed many times as the number of brokers
constantly raised.

The group eventually moved to Dalal Street in 1874 and in 1875 it


became official organization known. as The Native Share & Stock
Brokers Association". In 1957, the BSE became the first stock
exchange. to be recognized by the Indian Gout. under act. the
securities Contracts regulation.
In 1986, it developed the giving the BSE a means SENSEX index,
to measure overall performance of the exchange. The BSE is also.
Partner Exchange of the United Nations Sustainable Stock
Exchange initiatives joining in Sept. 2012.

Stock Market Terminologies: -


• Buy: Means to but share or take position in a company.
• Sell: Getting rid of the achieved shares as you have your goal
of want to cut down losses.
• Ask: Ask is what people who are looking to sell their stocks are
looking to get for their shares.
• Bid: Bid is what are willing you to pay for a stock.
• Bull: A market condition investors where are expecting prices
to rise.
• Bear: A market condition where investors are expecting prices
to fall.
• IPO: It is Initial Public offering that happens when the private
company becomes a pubicly traded company.
• Broker: A person who buy or sell stocks on your behalf.
• Portfolio: A collection of investments. owned by you.
• Dividend: Portion of company’s earnings which is paid to the
shareholder.
• Exchange: A place where different types of investments are
traded.
• Stock Symbol: A one-to-three-character alphabet symbol
which represents a Company listed on the exchange. E.g., =)
TCS → Tata Consultancy Services.
• Secondary offering: This is another offering in order to Sell
more Stocks and to raise more money from the public.
• Index: A benchmark that is used by investors and portfolio
managers to measure the market performance.
• Liquidity. It refers to how easily a Stock can be Sold off.
• Demit Account: An account that will hold the shares in the
name of the buyer.
• Volume: The number traded during a of shares of stock
particular time. period, normally measured in average daily
trading Volume.
Stock Market Timings in India

1. Pre- -Opening Session: -

• The duration is between 9:00 AM - 9:15 AM. This is further


sub-divided into 3 sessions.
• 9:00 AM - 9:08 AM: - This is the order entry session. You can
place an Order to buy or Sell stocks in this duration.
• 9:08 AM - 9:12 AM: - This session is used to order matching
and for calculating the order price of the normal session.
• 9:12 AM - 9:15AM: This session is used as a buffer speed. It is
used for the smooth translation of pre-project session to
the normal session.
2. Normal Trading Session:

• This is the actual time when most of the trading takes place.
• The time duration is between 9:15 Am-3:30 PM.
• You can buy and sell stocks in this Session.
• It follows a bilateral session i.e., whenever buying price is
equal to selling price, then the transaction is complete.

3. Post Closing Session: -

• The duration of the post-closing session is between 3:40 PM to


4:00 PM
• You can buy or sell stocks in post-closing session at the closing
price.
• The time between 3:30 PM to 3:40PM is used for closing price
calculation.
• The closing price of stock is the weighted average of the prices
between 3:00Pm to 3:30 PM.
ROLE OF STOCK EXCHANGE

Raising capital for business: - Exchanges help companies to


capitalized by selling shares to the investing public.

Mobilizing Savings for investment:- Exchanges helps companies


the public to mobilize their Savings to invest in high yielding
economic Sector.

facilitating Company Growth:- They help Companies to expand


and grow by fusion or acquisition.

Barometer of the Economy: - They maintain the stock indexes,


which are indicators of the general trend

Valuation of Securities: - Exchanges helps in the valuation of


securities factors of demand based on the and supply
SEBI

The Securities and Exchange Board of India is the regulatory of


the securities and commodity market. in India owned by the
Government of India. It was established on 12th April 1988 and
given statutory powers 30 January 7992 through the on SEBI Act,
1992.

1. Organization Structure of SEBI. Structure

• There is main nine members in the SEBI.


• One Chairman appointed by Govt. of India.
• Two members are officers from union finance
ministry.
• One member from RBI.
• Five members. are appointed by Union Govt. Of India

2. Objectives of SEBI.
• To provide a transparent and healthing platform for
corporates to raise funds from the financial market.
• To create and enforce laws for corporations. and
financial intermediaries.
• To protect the right of investors and ensure the safety
of their investments.
• To provide a support system for investor grievances.
• Promote and develop the financial Market of India
Trading Procedure

• Selection of Broker: It is the first step a where broker buys or


sells securities on behalf of the investors. This is necessary
because trading of securities can only be done through SEBI's
registered brokers, who are members of the stock exchange.

• Opening Demat Account:- The next step is to open an demat


account. Demat account refers to an account in which an
Indian citizen must open with the depository to trade in the
listed securities in electronic form. The securities are held in
the electronic form by a depositary.
• Placing the Order: The next step is to place the order with the
broker. The order can be communicated to the broker either
personally or electronically.
• Executing the Order: - According to the instructions of the
investor, the broker buys or sells the Securities. The broker
then issues a contract note. A copy of the contract note
contains the name and the price of securities, brokerage
charges, etc.
• Settlement:- This is the last stage in the trading of securities
done by the brokers on behalf of their clients.
Top 25 Companies listed on stock exchange
• Tata Consultancy Services (TCS).
• Reliance Industries.
• HDFC Bank.
• ITC
• HUL
• Infosys
• Larsen & Toubro
• Maruti Suzuki.
• ICICI Bank
• Bajaj Auto
• Housing Development finance Corporation..
• Axis Bank
• ONGC
• SBI
• Hindustan Unilever.
• Bajaj financery.
• Sun Pharmaceutical
• Bharti Airtel.
• Wipro
• Asian Paints.
• Jubilant Life science.
• Titan
• Mahindra & Mahindra
• Ultratech Cement
• Indus land Bank
Portfolio of Selected 5 Companies

Company Qty Buy Current Invested Curren P/L P/L


Price Price Amt t Value Per Overall
Shar
e
Reliance 05 1877.45 1954.10 9387.25 9770.5 76.65 383.25
Industrie 0
s
SBOI 50 196.05 247.65 9802.50 11382. 51.60 2580
50
Bajaj 04 2843.70 3242 11374.80 12968 398. 1593.20
Auto 30
Sun 19 469.40 514 8918.60 10279 71.60 1360.40
Pharma
Asian 05 2172.85 2226 10864.25 11130 63.15 265.75
Paints

Invested Amt = Rs. 50,347.15


Current Value = Rs. 56,530
P/L Overall = Rs. 6182.60
Date Price Date Price
02/11/2020 1877.45 17/11/2020 1993.25
03/11/2020 1850.40 18/11/2020 1987.20
04/11/2020 1913.20 19/11/2020 1973.15
05/11/2020 1955 20/11/2020 1899.50
06/11/2020 2029.15 23/11/2020 1950.70
09/11/2020 2050.70 24/11/2020 1964.05
10/11/2020 2084.55 25/11/2020 1947.80
11/11/2020 1997.20 26/11/2020 1952.60
12/11/2020 1980 27/11/2020 1929.80
13/11/2020 1996.40 01/12/2020 1954.10
2100

2050

2000

1950

1900

1850

1800
04-Nov
05-Nov
06-Nov
07-Nov
08-Nov
09-Nov
10-Nov
11-Nov
12-Nov
13-Nov
14-Nov
15-Nov
16-Nov
17-Nov
18-Nov
19-Nov
20-Nov
21-Nov
22-Nov
23-Nov
24-Nov
25-Nov
26-Nov
27-Nov
28-Nov
29-Nov
30-Nov
01-Dec

Interpretation :
• Buy price on 02-11-2020 Price - 1877.45
• Current price on 01-12-2020 Price-1954.10
• P/L per share Price -76.65
Date Price Date Price
02/11/2020 196.5 17/11/2020 240.20

03/11/2020 204.75 18/11/2020 252


04/11/2020 207 19/11/2020 239.75
05/11/2020 218.65 20/11/2020 242.75
06/11/2020 219.20 23/11/2020 238.70
09/11/2020 219.50 24/11/2020 243.85
10/11/2020 231.70 25/11/2020 243
11/11/2020 234.20 26/11/2020 245.45
12/11/2020 226.80 27/11/2020 244.25
13/11/2020 229.45 01/12/2020 247.65

300

250

200

150

100

50

0
23-Nov
02-Nov

03-Nov

04-Nov

05-Nov

06-Nov

07-Nov

08-Nov

09-Nov

10-Nov

11-Nov

12-Nov

13-Nov

14-Nov

15-Nov

16-Nov

17-Nov

18-Nov

19-Nov

20-Nov

21-Nov

22-Nov

24-Nov

25-Nov

26-Nov

27-Nov

Interpretation:
• Buy price on 02-11-2020 Price - 196.05
• Current price on 01-12-2020 Price-247.65
• P/L per share Price-51.60
Date Price Date Price
02/11/2020 2843.70 17/11/2020 3045.15
03/11/2020 2714.85 18/11/2020 3037.90
04/11/2020 2926.10 19/11/2020 3034.25
05/11/2020 2949.30 20/11/2020 3058.55
06/11/2020 2977.30 23/11/2020 3077.75
09/11/2020 3001.95 24/11/2020 3095.70
10/11/2020 2997.5 25/11/2020 3051.25
11/11/2020 3023.10 26/11/2020 3129.20
12/11/2020 3017.45 27/11/2020 3173.55
13/11/2020 3040.75 01/12/2020 3242

3300
3200
3100
3000
2900
2800
2700
2600
2500
2400

Interpretation:
• Buy price on 02-11-2020 Price-2843.70
• Current price on 01-12-2020 Price – 3242
• P/L per share Price-398.30
Date Price Date Price
02/11/2020 469.40 17/11/2020 518.40
03/11/2020 485.60 18/11/2020 513
04/11/2020 504.65 19/11/2020 507.35
05/11/2020 512.50 20/11/2020 503.35
06/11/2020 509.15 23/11/2020 512.85
09/11/2020 510.15 24/11/2020 520.15
10/11/2020 490.90 25/11/2020 506.20
11/11/2020 506.25 26/11/2020 511.70
12/11/2020 509.25 27/11/2020 511.65
13/11/2020 508.45 01/12/2020 541

550

540

530

520

510

500

490

480

470

460

450
05-Nov

20-Nov
02-Nov

03-Nov

04-Nov

06-Nov

07-Nov

08-Nov

09-Nov

10-Nov

11-Nov

12-Nov

13-Nov

14-Nov

15-Nov

16-Nov

17-Nov

18-Nov

19-Nov

21-Nov

22-Nov

23-Nov

24-Nov

25-Nov

26-Nov

27-Nov

Interpretation:
• Buy price on 02-11-2020 Price-469.40
• Current price on 01-12-2020 Price-514
• P/L per share Price -71.60
Date Price Date Price
02/11/2020 2172.85 17/11/2020 2187.65
03/11/2020 2154.65 18/11/2020 2195.75
04/11/2020 2169.45 19/11/2020 2161.70
05/11/2020 2238.30 20/11/2020 2166.55
06/11/2020 2209.05 23/11/2020 2186.25
09/11/2020 2225.20 24/11/2020 2207.90
10/11/2020 2199.75 25/11/2020 2155.30
11/11/2020 2181.70 26/11/2020 2155.50
12/11/2020 2171.80 27/11/2020 2215.30
13/11/2020 2179.95 01/12/2020 2226
2260

2240

2220

2200

2180

2160

2140

2120

2100
02-Nov

07-Nov
03-Nov

04-Nov

05-Nov

06-Nov

08-Nov

09-Nov

10-Nov

11-Nov

12-Nov

13-Nov

14-Nov

15-Nov

16-Nov

17-Nov

18-Nov

19-Nov

20-Nov

21-Nov

22-Nov

23-Nov

24-Nov

25-Nov

26-Nov

27-Nov

Interpretation:
• Buy price on 02-11-2020 Price-2172,85
• Current price on 01-12-2020 Price-2226
• P/L per share Price -63,15
Factors Affecting Share Prices

It is common knowledge that investing in the stock market can fetch


you high returns. But missteps or mistakes in your investment
strategies can cause you to lose your capital. This is due to the fact that
the stock market is a highly volatile environment, where the share
prices are constantly fluctuating. And when it comes to stock market,
there are several factors affecting share prices in India. While there are
numerous factors influencing share prices, briefly explained below,
are some of the most crucial and decisive factors that cause, Stock
prices to move up or down.

• Demand and Supply: The stock market is designed to work on


the age-old economic principle of demand and supply. These are
the two factors that drive the price of a particular stock. When
the demand for particular stock exceeds its supply, it effectively
means that number of buyers for the stock are more than the
number of Sellers. This is a rise invariably leads in the price of
that particular share since it signifies that the buyers are more
than willing to shell out the money to purchase the stock.

• When the supply for a particular stock is more than its demand,
it essentially signifies the presence of more sellers than buyers.
This drives the price of a stock downward since it indicates that
the sellers are trying to get out of the particular stock, selling it
at Whatever with price the buyers are willing to part with

• Fundamental factors: - The financials of a particular company


are often termed as fundamental factor. And the financial
performance of a company of the most important factors
affecting share prices in India. Investors will often overlook
companies with weak financial performance, thereby leading to
a downward spiral to the stock price. Also, traders and investors
looking to generate wealth always tend to gravitate towards
companies with exceptionally strong financials, which then
consequently leads to an increase in demand for that particular
stock, thereby driving the prices up.
• Economy: - Most investors tend to discount the impact of the
current economic climate when predicting the price movement
of shares. The State of the country's economy and the
developments in the global economy are one among the many
important factors that influences share prices.

• Government Policies: - The policies of the govt. are often


considered to be major factors affecting share prices in the stock
market. If the Policies announced by the government are
perceived as favorable by the investors, the share prices of the
associated industries and sectors tend to rise. However,
unfavorable policies, especially those that are concerned with
taxation, can cause investors to lose faith. This prompts a sell-
off, which can quickly put the share prices in downward spiral.

• Political Scenario: While this might seem like an innocuous


factor, in reality, it is far from it. Investors always try to stay
away from investing in countries going through political
uncertainty or turmoil, since such a scenario significantly
increases the risk of their capital being eroded. Also, any major
shift in the internal political scenario can dictate the price
movement of the shares in the stock market.

• Dividend Declarations: This is something that can be easily


identified in the price chart of a particular stock. Typically, the
share prices of a company's stock tend to rise upon the
declarations of the dividend. The reason for the rise in the Share
price is because investors generally perceive companies
declaring dividend as being financially strong and stable.
However, if the declaration of dividend by a company does not
meet the expectations of the invertors, it increases the
likelihood share price going down.
Conclusion
This list of factors affecting share prices are merely
indicative and are not exhaustive. Another important factor that is
capable of driving the share prices of companies is the overall
market sentiment. Unlike most other factors, this one is purely
emotional. If the market is bullish, the share prices will
invariably go up. In the event of bearish market,the prices will
mostly come down.

Before you decide your next trade, it's prudent Consider these
factors to get a better idea of how
the market may move.
BIBLIOGRAPHY

Books
Internet
YouTube

WEBSITES

• https://www.google.com/
• https://www.sebi.gov.in/
• https://www.nseindia.com/
• https://www.bseindia.com/
• https://www.wikipedia.org/

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