Sensex and the Nifty - Priyanga

Embed Size (px)

Citation preview

  • 8/3/2019 Sensex and the Nifty - Priyanga

    1/12

    WELCOME

  • 8/3/2019 Sensex and the Nifty - Priyanga

    2/12

    Sensex and the Nifty BSE, is Bombay Stock Exchange and NSE is

    National Stock Exchange.

    BSE is situated at Bombay and NSE is situated atDelhi.

    These are the major stock exchanges in ourcountry.

    There are other stock exchanges like the CalcuttaStock Exchange etc

  • 8/3/2019 Sensex and the Nifty - Priyanga

    3/12

    The Sensex is an "index.

    An index is basically an indicator.

    It gives you a general idea about whether most of the stocks have gone up or most ofthe stocks have gone down.

    The Sensex is an indicator of all the major companies that are listed under BSE.

    The Nifty is an indicator of all the major companies listed under NSE.

    If the Sensex goes up, it means that the prices of the stocks of most of the majorcompanies on the BSE have gone up.If the Sensex goes down, this tells you that the stock price of most of the majorstocks on the BSE have gone down.

  • 8/3/2019 Sensex and the Nifty - Priyanga

    4/12

    INDICES

    The launch of SENSEX in 1986 was later followed up in January 1989by 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 onlythe prices of stocks listed at BSE.

    BSE launched the dollar-linked version of BSE-100 index on May 22,2006.

    BSE launched two new index series on 27 May 1994: The 'BSE-200'and the 'DOLLEX-200'.

    BSE-500 Index and 5 sectoral indices were launched in 1999.

  • 8/3/2019 Sensex and the Nifty - Priyanga

    5/12

    INDICES BSE shifted all its indices to the free-float methodology (except BSE index).

    BSE disseminates information on the Price-Earnings Ratio, the Price toBook Value Ratio and the Dividend Yield Percentage on day-to-day basis ofall its major indices.

    The values of all BSE indices are updated on real time basis during markethours and displayed through the BOLT system, BSE website and news wireagencies.

    All BSE Indices are reviewed periodically by the BSE Index Committee.This Committee which comprises eminent independent financeprofessionals frames the broad policy guidelines for the development and

    maintenance of all BSE indices. The BSE Index Cell carries out the day-to-day maintenance of all indices

    and conducts research on development of new indices.

    SENSEX is significantly correlated with the stock indices of other emergingmarkets

  • 8/3/2019 Sensex and the Nifty - Priyanga

    6/12

    INDICES

  • 8/3/2019 Sensex and the Nifty - Priyanga

    7/12

    BSE (Bombay Stock Exchange) It is number one exchange in the world in terms of the number of

    company's listed.

    As of December 2010, BSE has over 5,034 listed companies and over7700 scrips.

    Bombay Stock Exchange is amongst the top ten exchanges, when it'sabout market capitalization.

    It has distinction of being first exchange in India, and the second in theworld to obtain an ISO 9001:2000 certification.

    The BSE Index, SENSEX, is the most popular stock market benchmarkattracting investors from across the globe.

  • 8/3/2019 Sensex and the Nifty - Priyanga

    8/12

    NSE Nifty 2011 - BSE Sensex 2011 This is one of the top FAQ among Stock Market investors

    and Traders in India.

    No Stock Market Analyst can say the answer to thisquestion accurately. In popular Business News TVChannels and Stock Market Websites says targets forNSE's Nifty and BSE's Sensex for 2011 and 2012 years.

    Even ordinary investor or trader can guess the ShareMarket moments, Using fundamental values or domesticgrowth rate of India .

  • 8/3/2019 Sensex and the Nifty - Priyanga

    9/12

    BSE SENSEX index historical value in pointsName of Year Sensex Value

    2001 3,2622002 3,3772003 5,8382004 6,6022005 9,3972006 13,7862007 20,2862008 9,6472009 17,4642010 20,5092011 18,446

  • 8/3/2019 Sensex and the Nifty - Priyanga

    10/12

    SENSEX Indices Established in 1875, Bombay Stock Exchange (BSE) is the the

    oldest stock exchange in Asia.

    It is number one exchange in the world in terms of the numberof company's listed.

    As of December 2010, BSE has over 5,034 listed companiesand over 7700 scrips.

    Bombay Stock Exchange is amongst the top ten exchanges,when it's about market capitalization.

    It has distinction of being first exchange in India, and thesecond in the world to obtain an ISO 9001:2000 certification.

    The BSE Index, SENSEX, is the most popular stock marketbenchmark attracting investors from across the globe.

  • 8/3/2019 Sensex and the Nifty - Priyanga

    11/12

    BSE INDICES "Sensex" - Calculated on a "Market Capitalization-Weighted" methodology of 30

    component stocks representing large, well-established and financially sound

    companies across popular sectors.

    The base year of SENSEX was taken as 1978-79.

    SENSEX today is widely reported in both domestic and international markets

    through print as well as electronic media.

    It is scientifically designed and calculation is based on globally accepted

    construction and review methodology.

    Since September 1, 2003, SENSEX is being calculated on a Free-float market

    capitalization Methodology. The base period of SENSEX is 1978-79 and the base value is 100 index points.

    This is often indicated by the notation 1978-79=100. The calculation of SENSEX

    involves dividing the free-float market capitalization of 30 companies in the Index

    by a number called the Index Divisor..

  • 8/3/2019 Sensex and the Nifty - Priyanga

    12/12