Stock Market

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Now ,Let us understand Stock Market in a better way

  • 01 What is NSE?

    The National Stock Exchange of India Limited is the country’s leading financial exchange, with headquarters in Mumbai. It was incorporated in 1992 and, since then, has evolved into an advanced, automated, electronic system offering trading facilities to investor across the country. In 2015, this exchange system ranked in fourth place in the world according to the metric of its trading volume.

    >NSE had a total market capitalisation exceeding the US $2.25 Trillion, putting it in 11th place in the list of the largest stock exchanges in the world.

  • Trading through this stock exchange in India is carried out through an electronic limit order book where order matching takes place through a trading computer. This entire process does not have the interference of specialists or market makers and is driven entirely by orders; meaning that when investors place a market order, it is automatically matched with a limit order. Thus, in this market, sellers and buyers have the advantage of remaining anonymous.

  • Bombay Stock Exchange is the oldest stock exchange in India as well as Asia. It is an integral component of the “$1 trillion” club, having the 11th largest market capitalisation value at $2.2 trillion.
    BSE stock exchange was founded by Premchand Roychand in 1875 and is currently managed by Sethurathnam Ravi, serving as the chairman.

  • Financial transactions in BSE are done online through an electronic trading system. Market orders can be directly placed in BSE online, without the requirement of external specialists through direct market access. Due to the absence of such limit orders, the focus is shifted from buyers/sellers to the total value of transactions in a day.

  • Stock Exchange market is a vital component of a stock market. It facilitates the transaction between traders of financial instruments and targeted buyers

  • The stock exchange in India serves as a market where financial instruments like stocks, bonds and commodities are traded

  • Multibagger stocks are equity shares of a company that generate returns multiple times higher than its associated cost of acquisition. Multibagger shares are issued by companies having tremendous growth potential, demonstrating sound management and production techniques.

  • Penny stocks are a form of market-traded security that attracts minimal pricing. These securities are mostly offered by companies with lower market capitalization rates.
    Therefore, these are also called nano-cap stocks, micro-cap stocks, and small-cap stocks, depending on the company’s market capitalization. >>Penny stocks in India are, therefore, released by companies with market capitalization lower than Rs. 5,000 Crore.

  • >>Blue-chip stocks are highly priced market stocks, which have emerged as a preferred investment option over recent years. The companies that issue blue-chip stocks are highly esteemed in the stock exchange market and tend to have a stable financial record and credibility.
    >> Stocks that are issued by blue-chip companies, i.e. companies with a large market capitalization are termed as blue-chip stocks.
    >>Individuals can invest in Blue-chip stocks in India either directly or through Mutual Funds

  • Offers higher returns that are paid quarterly. Facilitates corpus building. Facilitates portfolio diversification. Cushions the impact of the recession, inflation and economic stagnation.

  • pre-opening timing-->9:00-9:15
    normal session--> 9:15 am-3:30 pm
    post-closing session-->Stock market closing time in India is marked at 3.30 p.m
    Stock market closing time in India can be divided into two sessions –
    i)3:00-3:40
    ii)3:40-4:00>>This period is post stock market closing time when bids for the following day’s trade can be placed. Bids placed during this time are confirmed, provided adequate buyers and sellers are present in the market. These transactions are completed at a stipulated price, irrespective of changes in opening market price.

  • Muhurat’ Trading Indian stock market is generally closed for any transactions on Diwali, as it is a religious festival celebrated all across the country. However, every year on account of Diwali, the market opens for one hour. This year, on October 24, 2022, a one-hour trading session will be conducted from 6.15 p.m. to 7.15 pm as it is considered to be auspicious.

  • A company’s market capitalization rate is determined based on the product of the current price of its shares or stocks and the number of outstanding shares i.e. NAV of shares x the number of outstanding stocks. >>LARGE CAP COMPANIES--> RS 20000 CRORE AND ABOVE
    >>MID CAP COMPANIES--> RS 5000 CRORE TO 20000 CRORE
    >>SMALL CAP COMPANIES--> BELOW 5000 CRORE

 

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