ASSIGNMENT ON SHARE MARKET

MELT DOWN
SENSEX-

Sensex is an index, an index is basically an indicator.

It gives you a general idea about whether most of the
stockshave gone up or most of the stocks have gone
down. The sensex is an indicator of all the prices of the
major companies of the BSE(Bombay stock exchange)
HOW SENSEX IS CALCULATED-

 Sensex is calculated using a “market- capitalization weighted”

methodology. As per this methodology, the level of index at any
point of time reflect the total market value of 30 components
stock relative to a base period. (the market capitalization of a
company is determined by multiplying the price of its stock by
the number of shares issued by the company).
NIFTY-

Nifty is an indicator of all the major companies of NSE.

The Nifty index is a composite of the top 50stocks
listed on the National stock exchange. It is a simplified
tool which helps investors & ordinary people alike,
understand what happens in the stock market & by
extension, the economy.
BOMBAY STOCK EXCHANGE-

 The BSE or Bombay stock exchange sensitive Index is a value

weighted index. Composed of 30stocks with the base April 1979=100.
 It consists of the 30largest and most actively traded stocks,
representative of various sectors, on the BSE.
 These companies account for around one fifth of the market
capitalization of the BSE.
 The abbreviated from sensex was coined by Deepak mohoni around
1990 while writing market analysis columns for some business
newspaper.
 The index has increased by over13 times from June 1990 to
today.using information from April 1979 onwards the long run rate of
return on the BSE sensex can be estimated to be 0.52%per week
(continuously compounded) with a standard deviation of 3.67%.this
translates to 27%per annum, which translate to roughly 18% pa after
compensating for inflation.
SENSEX ON 26 SEP. 2008
NATIONAL STOCK EXCHANGE

 The NSE of India limited was created on the basis of the report of the
high powered study group on establishment of new stock
exchanger,which recommended promotion of NSE by financial
institution to provide access to investors from all across the country on
an equal footing.
 In 1992, NSE was incorporated as a tax paying company unlike other
stock exchange in the country.
 In April 1993,NSE was recognized as a stock exchange under the
securities contract(regulation) act,1956.
 The capital market (equities) segment commenced operation Nov. 1994
and operations in derivatives segment were started in June 2000.
 NSE launched s&p CNX NIFTY in April 1996.NSE is one largest
interactive VSAT based stock exchange in the world. Presently it
supports 3000 VSATS.
S&P CNX NIFTY
OBJECTIVE OF SENSEX

 To measure market movements

 Benchmark for funds performance

 For index based derivatives products

OBJECTIVE OF NSE

 Establishing nationwide trading facilities for all types of

securities .

 Ensuring equal access to investors all over the country through

an appropriate telecommunication network.

 Providing fair , efficient & transparent securities market using

electronic trading system.

 Meeting international benchmark and standards.

MELT DOWN OF SHARE MARKET

 Inflation in India is high, this will make production cost high and
net profit down of companies .

 Unstable political condition –Left parties threatening to withdraw

support to the government and this cause a re-election and
instability due to nuclear deal.

 International fuel price-Increasing fuel price is another reason

for fall,this cause production cost high for companies.

 Slow down US growth , due to this many US investors withdraw

their money from Indian market.
AMARICAN ECONOMY MAY ENTER A RECESSION
 Falling house prices.

 Mortgage lenders going

burst .

 Budget deficit .

 The sky rocketing Gasoline

prices.
CONCLUSION
In the ending of year 2007 , the sensex was increased very
high.it reached at point 17000on sep.2007. I.e rising of sensex
was to heavy investment of the foreign investors in Indian
market.
In the Jan. 2008 , sensex reached up to 21000 marks.
But after that the sensex is going down very quickly because
present time there is no investment in the Indian market by
foreign investors .
BSE & NIFTY also shows that sensex is falling down.
On the other hand this fall down of sensex is best
opportunity for the investors so that in future when the sensex
rise then the investors will get maximum profit.
THANK YOU

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