Financial Market - Bombay Stock Exchange (Fair Copy)

8/11/2019 Financial Market - Bombay Stock Exchange (Fair Copy)

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Bombay Stock Exchange

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ST. ANDREWS COLLEGE

2010-2011

GROUP NO. 7

ST. ANDREWS COLLEGE OF ARTS, SCIENCE AND COMMERCE.


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SUBJECT

Financial Market

TOPI


SY I

SEMESTER - 4

ST. ANDREWS COLLEGE OF ARTS, SCIENCE

AND COMMERCE.

ST.DOMINIC ROAD,

BANDRA

MUMBAI - 400050.


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ACKNOWLEDGEMENT

o It gives us immense pleasure in acknowledging the

valuable and cooperative assistance extended to us by the

various individuals who have helped us successfully in

completing our project.

o First of all, we would like to thank Mumbai University for

giving us this opportunity to study the subject. We would like

to show our gratitude to Prof. Renu Tiwari for valuableassistance, encouragement and support on the topic Bombay

Stock Exchange.

o Lastly, we would like to thank our parents, friends, and

colleagues who have supported us during the making of this

project. It is the encouragement of all these people that

made us proceed towards achieving our goal.


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DECLARATION

We the student of St. Andrews College of S.Y.BBI

SEMESTER 4 hereby declare that we have completed the

Project on Bombay Stock Exchange for the academic year

2010-2011. Information submitted is true and original to the

best of our knowledge.

Group Members

Name Roll No. Signature

Adrian DCosta 8108

Franciana Dias 8112

Lynn Dmello 8113

Anthony Fernandes 8123

Rahul Hingole 8132

Shruti Punja 8151


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CERTIFICATE

We group -7 herby certify that the following students of

St. Andrews College of S.Y.BBI have completed the project

on Bombay Stock Exchange for the subject Financial

Marketin the academic year 2010-2011. The information is

true and original for the best of my knowledge.

Group Members

Name Roll No. Signature

Adrian DCosta 8108

Franciana Dias 8112

Lynn Dmello 8113

Anthony Fernandes 8123

Rahul Hingole 8132

Shruti Punja 8151

Signature:


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IndexSr. No Topic Pg.No.

1 Introduction 8

2 History 10

3 BSE Indices 12

4 Top Brokers 14

5 BSE SWOT 15

6 BSE Management Team 18

7 BSEs International Convention Hall 19

8 BSE v/s NSE 23

9 Conclusion 27

10 Bibliography 28


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Introduction

The Mumbai Stock Exchange or the BSE (Bombay Stock Exchange) is

the oldest stock exchange in Asia and most of the index heavy weight

stocks are traded in this stock exchange. The Mumbai Stock Exchange

has over 7,000 scraps traded on the stock exchange. It is the second

largest stock exchange of India in terms of trade volumes and the

largest stock exchange in terms of stocks listed.

The Mumbai Stock Exchange is 11th largest in the world with market

capitalization of close to USD 1.4 trillion.

Vision:

The vision of the Mumbai Stock Exchange is To Emerge as the

premier Indian Stock Exchange by establishing global benchmarks."

Clearly the Mumbai Stock Exchange is thinking big in terms of

customer service and trading activity.


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Methodology

The Mumbai Stock Exchange uses, BSE Sensex (Sensitive Index), an

index of 30 large stocks by market capitalization. The BSE Sensex

gives a measure of the overall performance of the Mumbai Stock

Exchange, and is closely followed around the world. If the BSE Sensex

goes up, it means that the prices of the stocks of most of the major

companies on the Mumbai Stock Exchange have gone up. If the BSESensex goes down, this tells you that the stock price of most of the

major stocks on the Mumbai Stock Exchange have gone down. The BSE

Sensex is significantly correlated with the stock indices of other

emerging markets.

Based on the BSE Sensex, the BSE stock market has grown

significantly since 1990. After compensating for inflation, the Mumbai

Stock Exchange has averaged a roughly 18% annual return when

measured by the BSE Sensex - the most popular stock index in India,

over the last 15 years.


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History

The Bombay Stock Exchange is the oldest exchange in Asia. It traces

its history back to the 1850s, when 4 Gujaratis and 1 Parsi stockbroker

would gather under banyan trees in front of Mumbai's Town Hall. The

location of these meetings changed many times, as the number of

brokers constantly increased. The group eventually moved to Dalal

Street in 1874 and in 1875 became an official organization known as

'The Native Share & Stock Brokers Association'. In 1956, the BSE

became the first stock exchange to be recognized by the Indian

Government under the Securities Contracts Regulation Act. The

Bombay Stock Exchange developed the BSE Sensex in 1986, giving the

BSE a means to measure overall performance of the exchange. In 2000

the BSE used this index to open its derivatives market, trading Sensex


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futures contracts. The development of Sensex options along with

equity derivatives followed in 2001 and 2002, expanding the BSE's

trading platform. Historically an open outcry floor trading exchange,

the Bombay Stock Exchange switched to an electronic trading system

in 1995. It took the exchange only fifty days to make this transition.

This automated, screen-based trading platform called BSE On-line

trading (BOLT) currently has a capacity of 8 million orders per day.

The BSE has also introduced the world's first centralized exchange-

based internet trading system, BSEWEBx.co.in to enable investors

anywhere in the world to trade on the BSE platform. The BSE is

currently housed inPhiroze Jeejeebhoy Towers atDalal Street,Fort

area.
http://en.wikipedia.org/wiki/Phiroze_Jeejeebhoy_Towershttp://en.wikipedia.org/wiki/Dalal_Streethttp://en.wikipedia.org/wiki/Fort_(Mumbai_precinct)http://en.wikipedia.org/wiki/Fort_(Mumbai_precinct)http://en.wikipedia.org/wiki/Fort_(Mumbai_precinct)http://en.wikipedia.org/wiki/Fort_(Mumbai_precinct)http://en.wikipedia.org/wiki/Dalal_Streethttp://en.wikipedia.org/wiki/Phiroze_Jeejeebhoy_Towers


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BSE Indices

For the premier stock exchange that pioneered the securities

transaction business in India, over a century of experience is a proud


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achievement. A lot has changed since 1875 when 318 persons by paying

a then princely amount of Re. 1, became members of what today is

called Bombay Stock Exchange Limited (BSE).

Over the decades, the stock market in the country has passed through

good and bad periods. The journey in the 20th century has not been an

easy one. Till the decade of eighties, there was no measure or scale

that could precisely measure the various ups and downs in the Indian

stock market. BSE, in 1986, came out with a Stock Index-SENSEX-

that subsequently became the guide of the Indian stock market.

The launch of SENSEX in 1986 was later followed up in January 1989

by introduction of BSE National Index (Base: 1983-84 = 100). It

comprised 100 stocks listed at five major stock exchanges in India -

Mumbai, Calcutta, Delhi, Ahmedabad and Madras. The BSE National

Index was renamed BSE-100 Index from October 14, 1996 and since

then, it is being calculated taking into consideration only the prices of

stocks listed at BSE. BSE launched the dollar-linked version of BSE-

100 index on May 22, 2006.


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Top Brokers

Bonanza Portfolio Ltd

ICICI Securities

Oswal Group

Angel Broking

Share Khan

India Bulls Religare

Anand Rathi

Wellindia

Karvy

SBI Cap Securities

Indi Trade Just Trade

FCH Centrum Wealth Managers LTD

HDFC Securities LTD
http://en.wikipedia.org/wiki/Motilal_Oswal_Group%7CMotilalhttp://en.wikipedia.org/wiki/Motilal_Oswal_Group%7CMotilal


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BSE SWOT

Strengths:

1. BSE has inherent advantages: its history, larger scrip base and a

strong brand.

2. The SENSEX (BSEs 30 share sensitive index) is one of the

most recognized indexes and tracked worldwide.

3. Apart for larger base of listed companies, BSE also has a

historical perspective.

4. Its online trending system (BOLT) has awarded with the global

recognized Information Security System Standard BS7799-2-

2002.

5. It got the ISO certification for its surveillance and clearing and

settlement.


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Weakness:

1.

The BSE SENSEX, which delivers inferior hedging effectivenessand higher impact cost.

2. At present, BSE has fewer than 12% share across the cash and

share derivative market of equity markets.

3. At present, BSE is almost non-existence in derivative space.

4. BSE also lacks in terms of providing better services to its

customers and is not proactive.


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Opportunities:

1. Corporatization will improve internal management system and

investor relations, and benefit companies that are listed in BSE.2. Derivative market is growing at exponential rate and BSE with its

large infrastructure and long presence in the capital market has

the capability to expand its market share in this segment.

3. If a large private sector bank picks up a strategic stake in BSE, it

could give the exchange access to a large distribution network

and promote new products like derivatives. The strategic investor

could also be a market maker (providing buy and sell quotes at any

given time).

4. 30 to 40 percent of the income of exchange like NASADAQ and

NYSE is from vending data. For BSE, its measly 4 percent. The

potential for growth then, is immense.

Threats:

1. Aggressive competitor like NSE poses major threat to BSEs

future.

2. NSEs top 100 stocks alone account for nearly the preferred

destination for trading in the top stocks.


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BSE Management Team

Sr. No Name Designation

1 Mr. Madhu Kannan Managing Director & Chief

Executive Officer

2 Mr. Ashish Kumar Chauhan Dy. Chief Executive Officer

3 M3. Kersi Tavadia Chief information Officer

4 Mr. Nehal Vora Head Planning & Policy

5 Dr. Sayee Srinivasan Head Product Strategy

6 Mr. James E. Shapiro Head Market Development

7 Mr. Rahul Parilekar Chief Business Officer &

Head Of Markets

8 Mr. V.K.R. Agarwal Chief Finance Officer

9 Mr. Lakshman Gugulothu OSD


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BSEs International Convention Hall

BSE is committed to provide several valuable services to India's

corporate sector.

BSE now invites listed companies and other institutions to hold

their Annual General Meetings/ Extra ordinary General Meetings,

Listing Ceremonies, Analyst Meets or any other important event

at BSE's International Convention Hall, one of the largest,

centrally located and well-equipped facility in Mumbai.

The International Convention Hall is also made available to

reputed institutions for conducting seminars and conferences,and other corporate functions.
http://void%280%29/


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Location:

The International Convention hall is located in the heart of India's

financial business district. Located in the BSE Building, India's mostprominent financial landmark, the International Convention Hall

provides the right boundaries and atmosphere for business meetings.

It can be easily reached from Churchgate or CST (VT) railway

stations. The BSE building enjoys proximity to the bustling business

district of Mumbai including Nariman Point, Flora Fountain and Fort.
http://void%280%29/


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Facilities:

The Convention Hall is circularly arranged with a capacity of around

700 persons. It provides state-of-the-art infrastructure, imperativefor any large business meeting, replete with the following:

Projection Equipment - Three projectors, with two of these being by

the side of the imposing podium and one exactly at the rear end for

viewing convenience of visitors and panelists. Connectivity is provided

for laptops, desktops and beta players along with high-end audio visual

systems.

Web-Casting can also be arranged.

A separate business room with duplicate, Internet connectivity,

photocopier and telecom equipment is available.


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Prestigious events hosted at the International Convention

Hall:

Some of the prestigious events hosted at the International Convention

Hall include:

Visit of Prime Minister Mr. Atal Bihari Vajpayee for BSE's 125

years celebrations

Launch of various BSE 's products and services

Product launches/analyst meets of corporates

Listing ceremonies of hundreds of corporates.

Mastering Risk Series 2007

E&Y IPO Transformation Conclave,2008

BSR Awards for Corporate Social Responsibility, 2007

CII Capital Markets Summit 2007

P. Chidambaram's (Finance Minister) visit for Union Bank of

India's programme 2008


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BSE v/s NSE

When one just starts to explore stock markets, his first question is

obviously, how to determine which stocks to buy? Moneyvidya can of

course be a great help in this matter, with analysts getting tracked for

performance of their stock picks.

You always also have this second question in mind. Why there are 2exchanges in India? Why there are 2 indexes (Sensex & Nifty)? What

makes one better than other?


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Let see their pros and cons against each other one by one.

1. What is BSE? BSE is a very old stock exchange, founded in 1875

2. What is NSE? NSE is newer kid on the block (founded in 1994)

3. NSE has a more sophisticated technology, being the newer entrant

4. BSE has more number of stocks listed (World no 1, around 8000

companies listed) and more total market cap than NSE.

5. BSE has to be your exchange of choice if you want to deal a lot in

small caps.

6. Volume of shares (liquidity) is much more on NSE, than BSE.

7. NSE has much more volume of derivatives (futures & options). BSE is

almost non-existent in it.

8. What is Sensex? Sensex is the primary index of BSE weighted

avg. of 30 blue chip shares, formed in 1986.

9. S&P CNX Nifty, or just Nifty, is the index for NSE. Its more

popular amongst mutual funds etc.

10. Even though Nifty has more companies than Sensex, their

movements are almost always correlated.

11. Index funds mostly track themselves against Nifty, as NSE has

more volumes

12. Generally speaking, NSE has gained a lot of ground in last 10 years,

and BSE is lagging behind.


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13. You can use the difference in quotes to buy at one exchange and

sell at the other quickly, to make small amounts. This is called

Arbitrage Trading.


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Which one is better? If you want to play in small cap stocks, BSE

offers much more opportunity. Otherwise, generally speaking, if the

stock you want is available at NSE, go for NSE. It has better volumes,

better technology.

For a retail investor, it does not matter much. In general, the thumb

rule for cash segment (regular delivery trades) is you check if the

stock is listed at NSE, if yes, buy it on NSE, else buy on BSE. The

minor difference in quote wont matter for most practical purposes.

The quote that you see in your trading platform, and the actual price

that you get delivery for, might be slightly different, especially for low

volume mid cap stocks. What matters more, is what stocks you buy!


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Conclusion


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Bibliography

www.wikiedia.com

www.bseindia.com

www.financialliteracy.com

www.google.com/images

www.indiamart.com/market/bse

www.yahooanswers.com

www.diffen.com

www.24dunia.com

www.differencebetween.netwww.surfindia.com>finance>indianstockexchange
http://www.wikiedia.com/http://www.bseindia.com/http://www.financialliteracy.com/http://www.google.com/imageshttp://www.indiamart.com/market/bsehttp://www.yahooanswers.com/http://www.diffen.com/http://www.24dunia.com/http://www.differencebetween.net/http://www.differencebetween.net/http://www.24dunia.com/http://www.diffen.com/http://www.yahooanswers.com/http://www.indiamart.com/market/bsehttp://www.google.com/imageshttp://www.financialliteracy.com/http://www.bseindia.com/http://www.wikiedia.com/

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Financial Market - Bombay Stock Exchange (Fair Copy)