Iapm Group Project Final

PROJECT REPORT
ON

“INDIAN STOCK MARKET AND EFFICIENCY A STUDY OF NSE”

Acknowledgement
We express our sincere gratitude to Dr.P.K. Aggarwal ,our faculty,,for providing us the
opportunity to prepare a report on Indian Stock Market and efficiency A study of
NSE.
The knowledge we have gained during the course of this report would go a long way in
enriching our vision.
The help extended by our family and friends cannot be possibly expressed by words
and we are indebted to them.
Last but not the least we thank Mr. Bill Gates and Paul Allen for developing software
like MS Office, without which this report could not have been completed.
With the help of these people and our efforts we have been able to complete this
report. If there are any errors or any shortcomings in this report, singling them out will
be greatly appreciated.
INDEX
1 Introduction to Indian Capital
Market………………………………………………………………………………….
• Money
Market…………………………………………………………………………………………………………
…………..
• Capital
Market…………………………………………………………………………………………………………
…………..
2SEBI…………………………………………………………………………………………………………………
……………………
3 Bombay Stock Exchange of India
Ltd……………………………………………………………………………………
4 National Stock
Exchange……………………………………………………………………………………………………..
5 Stock Market
Analysis………………………………………………………………………………………………………
6Conclusion………………………………………………………………
1. INTRODUCTION TO INDIAN MARKETS
THERE ARE TWO TYPES OF MARKETS IN INDIA

MONEY MARKET
Money market is a market for debt securities that pay off in the short term usually less
than one year, for example the market for 90days treasury bills. This market
encompasses the trading and issuance of short term non equity debt instruments
including treasury bills, commercial papers, bankers acceptance, certificates of
deposits, etc.
In other word we can also say that the Money Market is basically concerned with the
issue and trading of securities with short term maturities or quasimoney instruments.
The Instruments traded in the moneymarket are Treasury Bills, Certificates of
Deposits (CDs), Commercial Paper (CPs), Bills of Exchange and other such
instruments of shortterm maturities (i.e. not exceeding 1 year with regard to the
original maturity)
CAPITAL MARKET
Capital market is a market for longterm debt and equity shares. In this market, the
capital funds comprising of both equity and debt are issued and traded. This also
includes private placement sources of debt and equity as well as organized markets
like stock exchanges.
Capital market can be divided into Primary and Secondary Markets.
PRIMARY MARKET
In the primary market, securities are offered to public for subscription for the purpose
of raising capital or fund. Secondary market is an equity trading avenue in which
already existing/pre issued securities are traded amongst investors. Secondary
market could be either auction or dealer market. While stock exchange is the part of
an auction market, OvertheCounter (OTC) is a part of the dealer market.
In addition to the traditional sources of capital from family and friends, startup firms are
created and nurtured by Venture Capital Funds and Private Equity Funds. According
to the Indian Venture Capital Association Yearbook (2003), investments of $881
million were injected into 80 companies in 2002, and investments of $470 million were
injected into 56 companies in 2003. The firms which received these investments were
drawn from a wide range of industries, including finance, consumer goods and health.
The growth of the venture capital and private equity mechanisms in India is critically
linked to their track record for successful exits. Investments by these funds only
commenced in recent years, and we are seeing a rapid buildup in a full range of
channels for exit, with a mix of profitable and unprofitable outcomes. This success with
exit suggests that investors will allocate increased resources to venture funds and
private equity funds operating in India, who will (in turn) be able to fund the creation of
new firms.

SECONDARY MARKET
Secondary Market refers to a market where securities are traded after being initially
offered to the public in the primary market and/or listed on the Stock Exchange.
Majority of the trading is done in the secondary market. Secondary market comprises
of equity markets and the debt markets.
For the general investor, the secondary market provides an efficient platform for
trading of his securities. For the management of the company, Secondary equity
markets serve as a monitoring and control conduit—by facilitating valueenhancing
control activities, enabling implementation of incentivebased management contracts,
and aggregating information (via price discovery) that guides management decisions.
Difference between the primary market and the secondary market
In the primary market, securities are offered to public for subscription for the
purpose of raising capital or fund. Secondary market is an equity trading avenue in
which already existing/pre issued securities are traded amongst investors. Secondary
market could be either auction or dealer market. While stock exchange is the part of
an auction market, OvertheCounter (OTC) is a part of the dealer market.
Main financial products/instruments dealt in the secondary market
• Equity: The ownership interest in a company of holders of its common and
preferred stock. The various kinds of equity shares are as follows –
• Equity Shares:
• An equity share, commonly referred to as ordinary share also represents the
form of fractional ownership in which a shareholder, as a fractional owner,
undertakes the maximum entrepreneurial risk associated with a business
venture. The holders of such shares are members of the company and have
voting rights. A company may issue such shares with differential rights as to
voting, payment of dividend, etc.
• Rights Issue/ Rights Shares: The issue of new securities to existing
shareholders at a ratio to those already held.
• Bonus Shares: Shares issued by the companies to their shareholders free of
cost by capitalization of accumulated reserves from the profits earned in the
earlier years.
• Preferred Stock/ Preference shares: Owners of these kind of shares are
entitled to a fixed dividend or dividend calculated at a fixed rate to be paid
regularly before dividend can be paid in respect of equity share. They also enjoy
priority over the equity shareholders in payment of surplus. But in the event of
liquidation, their claims rank below the claims of the company’s creditors,
bondholders / debenture holders.
• Cumulative Preference Shares: A type of preference shares on which dividend
accumulates if remains unpaid. All arrears of preference dividend have to be
paid out before paying dividend on equity shares.
• Cumulative Convertible Preference Shares: A type of preference shares
where the dividend payable on the same accumulates, if not paid. After a
specified date, these shares will be converted into equity capital of the company.
• Participating Preference Share: The right of certain preference shareholders to
participate in profits after a specified fixed dividend contracted for is paid.
Participation right is linked with the quantum of dividend paid on the equity
shares over and above a particular specified level.
• Security Receipts: Security receipt means a receipt or other security, issued by
a securitisation company or reconstruction company to any qualified institutional
buyer pursuant to a scheme, evidencing the purchase or acquisition by the
holder thereof, of an undivided right, title or interest in the financial asset involved
in securitisation.
• Government securities (GSecs): These are sovereign (credit riskfree) coupon
bearing instruments which are issued by the Reserve Bank of India on behalf of
Government of India, in lieu of the Central Government's market borrowing
programme. These securities have a fixed coupon that is paid on specific dates
on halfyearly basis. These securities are available in wide range of maturity
dates, from short dated (less than one year) to long dated (upto twenty years).
• Debentures: Bonds issued by a company bearing a fixed rate of interest usually
payable half yearly on specific dates and principal amount repayable on
particular date on redemption of the debentures. Debentures are normally
secured/ charged against the asset of the company in favour of debenture
holder.
• Bond: A negotiable certificate evidencing indebtedness. It is normally unsecured.
A debt security is generally issued by a company, municipality or government
agency. A bond investor lends money to the issuer and in exchange, the issuer
promises to repay the loan amount on a specified maturity date. The issuer
usually pays the bond holder periodic interest payments over the life of the loan.
2. SEBI
SECURITY AND EXCHANGE BOARD OF INDIA
SEBI AND ITS ROLE IN THE SECONDARY MARKET
The SEBI is the regulatory authority established under Section 3 of SEBI Act 1992 to
protect the interests of the investors in securities and to promote the development of,
and to regulate, the securities market and for matters connected therewith and
incidental thereto.
Securities and Exchange Board of India constituted under the Resolution of the
Government of India in the Department of Economic Affairs No.1 (44)SE/86, dated the
12th day of April, 1988;
The Board shall consist of the following members, namely:
1. A Chairman
2. Two members from amongst the officials of the Ministry of the Central
Government dealing with Finance (and administration of the Companies Act,
1956;)
3. One member from amongst the officials of the Reserve Bank
4. Five other members of whom at least three shall be the wholetime members

Departments of SEBI regulating trading in the secondary market
(1) Market Intermediaries Registration and Supervision department (MIRSD)
Registration, supervision, compliance monitoring and inspections of all market
intermediaries in respect of all segments of the markets viz. equity, equity derivatives,
debt and debt related derivatives.
(2) Market Regulation Department (MRD)
Formulating new policies and supervising the functioning and operations (except
relating to derivatives) of securities exchanges, their subsidiaries, and market
institutions.

(3)Derivatives and New Products Departments (DNPD)
Supervising trading at derivatives segments of stock exchanges, introducing new
products to be traded, and consequent policy changes.
3. BOMBAY STOCK EXCHANGE OF INDIA LIMITED
Bombay Stock Exchange Limited is the oldest stock exchange
in Asia with a rich heritage. Popularly known as "BSE", it was
established as "The Native Share & Stock Brokers Association"
in 1875. It is the first stock exchange in the country to obtain permanent recognition in
1956 from the Government of India under the Securities Contracts (Regulation) Act,
1956.
The Exchange's pivotal and preeminent role in the development of the Indian capital
market is widely recognized and its index, SENSEX, is tracked worldwide. Earlier an
Association of Persons (AOP), the Exchange is now a demutualised and corporative
entity incorporated under the provisions of the Companies Act, 1956, pursuant to the
BSE (Corporatization and Demutualization) Scheme, 2005 notified by the Securities
and Exchange Board of India (SEBI).
With demutualization, the trading rights and ownership rights have been delinked
effectively addressing concerns regarding perceived and real conflicts of interest. The
Exchange is professionally managed under the overall direction of the Board of
Directors.
The Board comprises eminent professionals, representatives of Trading Members and
the Managing Director of the Exchange. The Board is inclusive and is designed to
benefit from the participation of market intermediaries.
In terms of organization structure, the Board formulates larger policy issues and
exercises overall control. The committees constituted by the Board are broadbased.
The daytoday operations of the Exchange are managed by the Managing Director
and a management team of professionals.
The Exchange has a nationwide reach with a presence in 417 cities and towns of
India. The systems and processes of the Exchange are designed to safeguard market
integrity and enhance transparency in operations. During the year 20042005, the
trading volumes on the Exchange showed robust growth.
The Exchange provides an efficient and transparent market for trading in equity, debt
instruments and derivatives. The BSE's On Line Trading System (BOLT) is a
proprietary system of the Exchange and is BS 779922002 certified. The surveillance
and clearing & settlement functions of the Exchange are ISO 9001:2000 certified.
Bombay Stock Exchange Limited (BSE) which was founded in 1875 with six brokers
has now grown into a giant institution with over 874 registered BrokerMembers
spread over 380 cities across the country. Today, BSE's Wide Area Network (WAN)
connecting over 8000 BSE Online Trading (BOLT) System Trader Work Stations
(TWS) is one of the largest of its kind in the country.

With a view to provide efficient and integrated services to the investing public through
the members and their associates in the operations pertaining to the Exchange,
Bombay Stock Exchange Limited (BSE) has set up a unique Member Services and
Development to attend to the problems of the BrokerMembers.
Member Services and Development Department is the single point interface for
interacting with the Exchange Administration to address to Members' issues. The
Department takes care of various problems and constraints faced by the Members in
various products such as Cash, Derivatives, Internet Trading, and Processes such as
Trading, Technology, Clearing and Settlement, Surveillance and Inspection,
Membership, Training, Corporate Information, etc.
VISION OF BSE

“Emerge as the premier Indian stock exchange by
establishing global benchmarks"
COMMODITY EXCHANGES
There are three categories:
• NCDEX
• MCX
• NMCE
4. National Stock Exchange (NSE)
With the liberalization of the Indian economy, it was found inevitable to lift the Indian
stock market trading system on par with the international standards. On the basis of
the recommendations of highpowered Pherwani Committee, Industrial Development
Bank of India, Industrial Credit and Investment Corporation of India, Industrial
Finance
.
Corporation of India, all Insurance Corporations, selected commercial banks and
others incorporated the National Stock Exchange in 1992.
Trading at NSE can be classified under two broad categories:
(a) Wholesale debt market and
(b) Capital market.
Wholesale debt market operations are similar to money market operations
institutions and corporate bodies enter into high value transactions in financial
instruments such as government securities, treasury bills, public sector unit bonds,
commercial paper, certificate of deposit, etc.
There are two kinds of players in NSE:
(a) Trading members and
(b) Participants.
Recognized members of NSE are called trading members who trade on behalf of
themselves and their clients. Participants include trading members and large players
like banks who take direct settlement responsibility.
Trading at NSE takes place through a fully automated screenbased trading
mechanism, which adopts the principle of an orderdriven market. Trading members
can stay at their offices and execute the trading, since they are linked through a
communication network. The prices at which the buyer and seller are willing to
transact will appear on the screen. When the prices match the transaction will be
completed and a confirmation slip will be printed at the office of the trading member.
NSE has several advantages over the traditional trading exchanges. They are as
follows:

NSE brings an integrated stock market trading network across the nation.Investors can trade at the same price from
anywhere in the country since
intermarket operations are streamlined coupled with the countrywide access to the
securities.
Delays in communication, late payments and the malpractice’s prevailing in
the traditional trading mechanism can be done away with greater operational
efficiency and informational transparency in the stock market operations, with the
support of total computerized network.
Unless stock markets provide professionals service, small investors and foreign
investors will not be interested in capital market operations. And capital market being
one of the major sources of longterm finance for industrial projects, India cannot
afford to damage the capital market path. In this regard NSE gains vital importance in
the Indian capital market system.

5. STOCK MARKET ANALYSIS
In this stock market analysis, I have taken data of Sensex and Nifty for the period of
8 YEARS from JANUARY 2002 to DECEMBER 2009. After taking into consideration data of
stock market, I compared Nifty with Sensex through graphical presentation and also
did analysis of fluctuations in stock market YEAR wise.
I have taken 5 stock excanges of different companies namely, NEW YORK STOCK EXCHANGE, SINGAPORE
STOCK EXCHANGE, NEW YORK STOCK EXCHANGE, LONDON STOCK EXCHANGE and shown these
four international exchanges efficiency on BOMBAY STOCK EXCHANGE.

LISTING OF SECURITIES
The stocks, bonds and other securities issued by issuers require listing for providing
liquidity to investors. Listing means formal admission of a security to the trading
platform of the Exchange. It provides liquidity to investors without compromising the
need of the issuer for capital and ensures effective monitoring of conduct of the issuer
and trading of the securities in the interest of investors. The issuer wishing to have
trading privileges for its securities satisfies listing requirements prescribed in the
relevant statutes and in the listing regulations of the Exchange. It also agrees to pay
the listing fees and comply with listing
requirements on a continuous basis. All the issuers who list their securities have to
satisfy the corporate governance requirement framed by regulators.
NAMES OF LISTED CO. IN NIFTY
Com pany Nam e Industry S ym bo l
A B B Ltd. E LE CTRICA L E QUIP M E NT ABB
A CC Ltd. CE M E NT A ND CE M E NT P RODUCTS A CC
A m buja Cem ents Ltd. CE M E NT A ND CE M E NT P RODUCTS A M B UJ A CE M
B harat Heavy E lec tric als Ltd. E LE CTRICA L E QUIP M E NT B HE L
B harat P etroleum Corporation Ltd. RE FINE RIE S B P CL
B harti A irtel Ltd. TE LE CO M M UNICA TION – S E RV ICE S B HA RTIA RTL
Cairn India Ltd. OIL E X P LORA TIO N/P RO DUCTION CA IRN
Cipla Ltd. P HA RM A CE UTICA LS CIP LA
DLF Ltd. CONS T RUCTION DLF
GA IL (India) Ltd. GA S G A IL
Gras im Industries Ltd. CE M E NT A ND CE M E NT P RODUCTS G RA S IM
HCL Technologies Ltd. COM P UT E RS – S OFTW A RE HCLTE CH
HDFC B ank Ltd. B A NK S HDFCB A NK
Hero Honda M otors Ltd. A UTOM OB ILE S – 2 A ND 3 W HE E LE RS HE ROHONDA
Hindalc o Indus tries Ltd. A LUM INIUM HINDA LCO
Hindus tan Unilever Ltd. DIV E RS IFIE D HINDUNILV R
Hous ing Dev elopm ent Finance CorporationFINA
Ltd. NCE – HOUS ING HDFC
I T C Ltd. CIGA RE TTE S ITC
ICICI B ank Ltd. B A NK S ICICIB A NK
Idea Cellular Ltd. TE LE CO M M UNICA TION – S E RV ICE S IDE A
Infos ys T ec hnologies Ltd. COM P UT E RS – S OFTW A RE INFOS Y S TCH
Larsen & Toubro Ltd. E NGINE E RING LT
M ahindra & M ahindra Ltd. A UTOM OB ILE S – 4 W HE E LE RS M&M
M aruti S uzuki India Ltd. A UTOM OB ILE S – 4 W HE E LE RS M A RUTI
NTP C Ltd. P OW E R NTP C
National A lum inium Co. Ltd. A LUM INIUM NA TIONA LUM
Oil & Natural Gas Corporation Ltd. OIL E X P LORA TIO N/P RO DUCTION O NGC
P ower Grid Corporation of India Ltd. P OW E R P OWE RGRID
P unjab National B ank B A NK S P NB
Ranbax y Laboratories Ltd. P HA RM A CE UTICA LS RA NB A X Y
Relianc e Com m unic ations Ltd. TE LE CO M M UNICA TION – S E RV ICE S RCOM
Relianc e Indus tries Ltd. RE FINE RIE S RE LIA NCE
Relianc e Infrastruc ture Ltd. P OW E R RE LINFRA
Relianc e P etroleum Ltd. RE FINE RIE S RP L
Relianc e P ower Ltd. P OW E R RP OW E R
S atyam Com puter S erv ic es Ltd. COM P UT E RS – S OFTW A RE S A TY A M COM P
S iem ens Ltd. E LE CTRICA L E QUIP M E NT S IE M E NS
S tate B ank of India B A NK S S B IN
S teel A uthority of India Ltd. S TE E L A ND S TE E L P RODUCTS S A IL
S terlite Industries (India) Ltd. M E TA LS S TE R
S un P harm ac eutical Indus tries Ltd. P HA RM A CE UTICA LS S UNP HA RM A
S uz lon E nergy Ltd. E LE CTRICA L E QUIP M E NT S UZLON
T ata Com m unications Ltd. TE LE CO M M UNICA TION – S E RV ICE S TA TA COM M
T ata Cons ultanc y S erv ices Ltd. COM P UT E RS – S OFTW A RE TCS
T ata M otors Ltd. A UTOM OB ILE S – 4 W HE E LE RS TA TA M OTORS
T ata P ower Co. Ltd. P OW E R TA TA P OW E R
T ata S teel Ltd. S TE E L A ND S TE E L P RODUCTS TA TA S T E E L
Unitech Ltd. CONS T RUCTION UNITE CH
W ipro Ltd. COM P UT E RS – S OFTW A RE W IP RO
Z ee E ntertainm ent E nterpris es Ltd. M E DIA & E NTE RTA INM E NT ZE E L
TOTAL NUMBER OF LISTED COMPANIES

NSE 2002 2003 2004 2005 2006 2007 2008 2009
916 911 957 1 ,0 3 4 1 ,1 5 6 1 ,3 3 0 1 ,4 0 6 1 ,4 5 3
NYSE 2002 2003 2004 2005 2006 2007 2008 2009
1 ,1 1 4 1 ,3 9 2 1 ,3 3 3 1 ,2 5 9 1 ,2 1 0 1 ,1 5 5 1 ,2 3 8 1 ,1 6 0
If we compare our stock exchange with NYSE it shows both the exchanges listed companies were increasing in
initial years and in our exchange it is always going to increse but in NYSE in 2007 it started to decrease.It shows
the efficiency of Indian stock exchange in NSE.
The other stok exchanges listed companies are:
SSE
2002 2003 2004 2005 2006 2007 2008 2009
501 560 633 686 708 762 767 773
LONDON STOCK EXCHANGE
2002 2003 2004 2005 2006 2007 2008 2009
2 ,8 2 4 2 ,6 9 2 2 ,8 3 7 3 ,0 9 1 3 ,2 5 6 3 ,3 0 7 3 ,0 9 6 2 ,7 9 2
BSE
2002 2003 2004 2005 2006 2007 2008 2009
NA NA 4 ,7 3 0 4 ,7 6 3 4 ,7 9 6 4 ,8 8 7 4 ,9 2 1 4 ,9 5 5
From the above information by taking listing of various stock exchanges it has been analysed that
their is large increase in number of companies listed in NSE as compared to others.and their is increase in BSE also
but the number of traded companies are decreased in NYSE and LONDON STOCK EXCHANGE.
TOTAL MARKET CAPITALISATION(amount in USD millions)
NSE
2002 2003 2004 2005 2006 2007 2008 2009
1 ,1 2 ,4 5 3 .9 2 ,5 2 ,8 9 3 .4 3 ,6 3 ,2 7 6 .0 5 ,1 5 ,9 7 2 .5 7 ,7 4 ,1 1 5 .61 6 ,6 0 ,0 9 6 .96 ,0 0 ,2 8 1 .61 2 ,2 4 ,8 0 6 .4
This shows that the NSE is growing on year to year basis. The mkt capitalisation doubled in 2003 from
that of in 2002.
1 124.88% INC
2 43.65% INC
3 42.03% INC
4 50.03% INC
5 114.5% INC
6 63.84% DEC because of the global recession faced world over.
7 104.03% INC
20022009 989.16% INC
SSE 2002 2003 2004 2005 2006 2007 2008 2009
1 , 0 1 , 5 5 13 , .47 8 , 5 0 22 ,.16 7 , 6 1 27 , .58 7 , 3 4 30 ,.86 4 , 2 8 56 , .34 9 , 1 7 26 , .66 4 , 9 7 44 ,.84 1 , 2 4 6 . 7
1 46.23% INC
2 46.54% INC
3 18.25% INC
4 49.32% INC
5 40.30% INC
6 50.86% DEC because of the global recession faced world over.
7 81.63% INC
20022009 151.23% INC
NYSE
2002 2003 2004 2005 2006 2007 2008 2009
9 0 , 1 5 , 21 7, 10 3. 5, 2 8 1, 9 , 52 37 ., 10 7 1, 5, 37 68 ,. 3 2 1, 3 , 05 34 ., 02 1 1, 1, 56 67 ,. 59 0 , 89 32 2, 0. 58 , 91 3, 14 8. 1, 3 7 , 7 9 3 . 3
1 25.66% INC
2 12.17% INC
3 7.27% INC
4 13.12% INC
5 1.4% INC
6 41.16% DEC
7 28.55% INC
20022009 31.31% INC
LSE
2002 2003 2004 2005 2006 2007 2008 2009
1 8 ,5 6 ,1 9 42 .44 ,6 0 ,0 6 42 .08 ,6 5 ,2 4 3 .20 ,5 8 ,1 8 23 .47 ,9 4 ,3 1 03 .38 ,5 1 ,7 0 51 .98 ,6 8 ,1 5 32 .07 ,9 6 ,4 4 4 .3
1 32.53% INC
2 16.47% INC
3 36.73% INC
4 11.40% INC
5 8.98% INC
6 3.8% DEC
7 49.69% INC
20022009 5.06% INC
TOTAL VALUE OF BOND TRADING(amount in USD millions)
NSE
2002 2003 2004 2005 2006 2007 2008 2009
1,81,368.1 2,21,549.8 2,88,255.1 2,07,784.5 1,38,202.8 45,766.4 59,960.8 64,010.0
1 22.15% INC
2 30.10% INC
3 27.9% DEC
4 33.4% DEC
5 66.9% DEC
6 31% INC
7 6.7% INC
SSE
2002 2003 2004 2005 2006 2007 2008 2009
556.0 291.4 539.9 1,426.8 6,734.3 9,318.6 19,552.6 15,014.1
1 47.5% DEC
2 85.2% INC
3 1.64% INC
4 3.72% INC
5 38.3% INC
6 10.98% INC
7 22.7% DEC
NYSE
2002 2003 2004 2005 2006 2007 2008 2009
556.7 695.2 1,068.3 1,279.4 1,371.8 1,176.2 1,000.4 1,340.0
1 24.8% INC
2 53.6% INC
3 20% INC
4 72.2% INC
5 14.2% DEC
6 14.9% DEC
7 34% INC
LSE
2002 2003 2004 2005 2006 2007 2008 2009
1 5 ,4 6 ,0 6 3 .11 6 ,7 5 ,8 7 6 .22 1 ,7 5 ,7 5 1 .22 7 ,9 3 ,0 4 0 .33 0 ,0 8 ,6 8 5 .93 3 ,0 5 ,3 5 6 .83 6 ,0 3 ,1 6 4 .56 5 ,6 7 ,4 0 4 .8
BSE
2002 2003 2004 2005 2006 2007 2008 2009
2 5 .6 1 0 0 .0 1 7 1 .5 1 ,3 1 2 .5 3 ,0 6 6 .8 6 1 2 .5 NA 4 ,6 0 9 .7
PRICE EARNING RATIO AND GROSS DIVIDEND YIELD(amt in USD
million)
NSE
2002 2003 2004 2005 2006 2007 2008 2009
1 5 .4 1 .5 1 4 .6 2 .4 1 9 .2 1 .5 1 6 .3 1 .8 1 7 .2 1 .6 2 1 .3 1 .2 2 1 .3 1 .2 1 1 .8 2 .0
SSE
2002 2003 2004 2005 2006 2007 2008 2009
1 6 .8 2 .6 2 1 .2 2 .6 2 4 .9 2 .9 1 6 .6 2 .8 1 5 .4 3 .2 1 9 .4 3 .5 1 8 .0 2 .9 6 .2 6 .2
NYSE
2002 2003 2004 2005 2006 2007 2008
1 2 .9 3 .9 1 4 .9 3 .7 1 1 .4 4 .1 1 3 .3 5 .0 1 2 .2 3 .7 1 1 .1 3 .3 5 .4 N A
LSE
2002 2003 2004 2005 2006 2007 2008
1 7 .7 3 .6 1 8 .3 3 .2 1 4 .7 3 .2 1 4 .0 3 .1 1 3 .4 3 .1 1 1 .8 3 .1 8 .9 4 .4
IMPROVEMENT OF NSE AFTER THE RECESSION
NIFTY value during recession was 2267 and NIFTY present value is
5474. The percentage increse is 14.14%. No other index has shown such a
growth after the recession. Even the Singapore NIFTY has shown a growth
of 136.8 % which is less as compered to our NIFTY by 5%.This shows
the efficiency of the National Stock Exchange as compared to other stock
exchanges i.e. London Stock Exchange, New York Stock Exchange.
CONCLUSION
This study has empirically examined the informational efficiency of Indian stock market with regards
to national stock exchnage. The result of the study
showed the fact that the security prices reacted to the announcement of stock splits. On the basis of market
capitaliation and value of bond of the various listed companies in nifty we have anlysed that the Indian Stock
Maket is efficient in last year 20092010 as compared to the last year data i.e. 20082009.The reason behind
this is because of the effect of the global recession. We have
conclude from the forgoing discussion that the Indian stock markets in respect of national stock exchnage in
general are efficient, but not perfectly efficient to the announcement of price earning ration. This can be used
by
investors for making abnormal returns at any point of the announcement period.

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1 , 0 1 , 5 5 13 , .47 8 , 5 0 22 ,.16 7 , 6 1 27 , .58 7 , 3 4 30 ,.86 4 , 2 8 56 , .34 9 , 1 7 26 , .66 4 , 9 7 44 ,.84 1 , 2 4 6 . 7

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