INTRODUCTION

There was a time people used to keep their money in post offices and banks. With
increased digitalized world people are now emerging for several choices for the investment
alternatives. Now a day, one of the most emerging choices is to invest in equities shares for good
return people are ready to take risk. Literally we every individual take risk in order to evolve
with risk there is no good reward. . Law always says that investors get HIGHER RETURN if
they take HIGH RISK. For high risk there is one avenue to invest and that is Equity Market.

The stock market — the daytime adventure serial of the well-to-do — would not be the
stock market if it did not have its ups and downs. And it has many other distinctive
characteristics. Apart from the economic advantages and disadvantages of stock exchanges the
advantage that they provide a free flow of capital to finance industrial expansion, for instance,
and the disadvantage that they provide an all too convenient way for the unlucky, the imprudent,
and the gullible to lose their money — their development has created a whole pattern of social
behaviour, complete with customs, language, and predictable responses to given events. What is
truly extraordinary is the speed with which this pattern emerged full blown following the
establishment, in 1611, of the world's first important stock exchange — a roofless courtyard in
Amsterdam — and the degree to which it persists

In fact, the stock market is often considered the primary indicator of a country's
economic strength and development. Rising share prices, for instance, tend to be associated with
increased business investment and vice versa.

In this way, investing in stock market, the stock exchanges also play importance role.
Exchanges also act as the clearinghouse for each transaction, meaning that they collect and
delivery the shares, and guarantee payment to the seller of a security. This eliminates the risk to
an individual buyer or seller that the counterparty could default on the transaction. .

There are basically two types of market stock market

1. Capital market

2. Commodity market

1. Capital market-

Capital markets are the markets where securities such as shares and bonds are issued to raise
medium to long-term financing, and where the securities are traded. The securities might be
issued by a company which could issue shares or bonds to raise money.

2. Commodity market

The commodity market is a market where traders buy and

sell commodities. Commodities are raw materials or primary agricultural product the
commodity market is similar to the equity market. However, in the equity market, people buy and
sell shares.
 There are two types of Capital market. These are

A. Primary market

B. Secondary market

Primary market

The primary market provides the channel for sale of new securities. Primary market provides
opportunity to issuers of securities; Government as well as corporate to raise resources to meet
their requirements of investment and/or discharge some obligation. some obligation. They may
issue the securities at face value, or at a discount/premium and these securities may take a variety
of forms such as equity, debt etc. They may issue the securities in domestic market and/or
international market

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 comprises of equity markets and the debt markets. the main difference between
Primary and Secondary Market is

 In Primary Market securities are offered to public for subscription for the purpose
of raising capital or fund
  Secondary Market is an equity trading venue in which already existing/pre-issued
securities are traded among investors.

What is investment?

Investment means commiting something for a good return . it can be time , value , anything
which is worrth for investment.

We earn and spend money for necesties and save something to meet uncertainity. We
may save in somewhere or use for to get return in future , this is called investment. With out
momntum even money can not generate anything unless we invest.

Why investment

Investment gives us retun , with more risk more retun, less risk less retun .

We should invest beacuse

 To get return form idle money

 To complete goal more quicky

 To meet uncetainty

On average inflation is increasing more than 4-5% from independence. It means cost of
living is raing more that the purchasing power. So investment is a good souce to coupup with the
inflation.

Investor

The perosn who invest is an invester. It can be anyone it can be-

Who commits money to with the expextation of return, in finace invstoer refers to the particular
types of people and compamanies who purchase equiuty or debt securites for finacial gain in
srock market

Investor’s behavibour

investor behavibour is the psycological behaviberial analysis of invester regarding

investing in stock market. Generally , most of investoer wants maximize profit with minimize
risk, as comparing to speculator seeks to take risk to get higher return.
 The stock market investort is mostly concerned about risk and return. Many investoer
purchase a particaulkar stock in intention make a higher profit over a shoret period of time.. it is
more like gambling .

Some belioves that there are no safe investment that will provide higher return n short perido of
time , there for you shouild direct your investment for long term and that is more likely to
rewaerd you for patience with high return.

Investor behavibour is closely releted with the behaviorial finance and behaviorial
economics .. it is the study of social , cognitive and emotioanl factos to understand the
econjomics decisions of investors for investment and their effect in market preice return.

Equity market

Equity market is the place where prople buy and seller meet toexchange ownership of
coamnpanies’s share for money

This the market where share are being bought and sold through stock exchangesit is one
of the most vital areas of a market economy because it gives companies access to capital and
investors a slice of ownership in a company with the potential to realize gains based on its future

performance. Equity market, or stock market, is a system through which company shares are
traded. The equity market offers investors an opportunity to participate in a company's success
through an increase in its stock price with enhanced opportunity, however, the equity market
usually carries greater risk than debt markets.

Indian equity market

The Indian Equity Market is more popularly known as the Indian Stock Market. The Indian stock
market has become 8th largest market all over the world with market capitalization of 2.29USD
trillion dollar as on 2017 which was 1.90 trillion which has approx. 20% growth within a decade
The Indian equity market depends on three factors –
✔ funding into equity from all over the world
✔ corporate houses performance

✔ Monsoons
The Indian market has 22 stock exchanges. The larger companies are enlisted with BSE and NSE
And other small companies are listed in other stock exchanges. The functions of the Equity
Market in India are supervised by SEBI (Securities Exchange Board of India

The equity market is also affected through trade integration policy. The country has
advanced both in foreign institutional investment (FII) and trade integration since 1995. This is a
very attractive field for making profit for medium and long term investors, short-term swing and
position traders and very intraday traders.

The Indian Equity Market was not well organized or developed before independence.
After independence, new issues were supervised. The timing, floatation costs, pricing, interest
rates were strictly controlled by the Controller of Capital Issue (CII).
In the 1950s, there was uncontrollable speculation and the market was known as ‘Stata Bazaar'.
Speculators aimed at company’s like-Tata Steel, Kohinoor Mills, Century Textiles, Bombay
Dyeing and National Rayon. The Securities Contracts (Regulation) Act, 1956 was enacted by the
Government of India. Financial institutions and state financial corporation were developed
through an established network.
 Two new stock exchanges, NSE (National Stock Exchange of India) established in 1994
and OTCEI (Over the Counter Exchange of India) established in 1992 gave BSE a nationwide
competition. In 1995-96, an amendment was made to the Securities Contracts (Regulation) Act,
1956 for introducing options trading. In April 1995, the National Securities Clearing Corporation
(NSCC) and in November 1996, the National Securities Depository Limited (NSDL) were set up
for demutualised trading, clearing and settlement.

SECTORS IN INDIAN STOCK MARKET

There are so many companies who manufactures product and provide services under specified
under specific name called sector
There are various kind of industries and organized into different classes of industry
classifications, it is called sector. I have focused on only five sectors. These are
1. Oil and gas
2. IT sector
3. Banking sector
4. Infrastructure sector
5. Automobile sector
But there are so many sectors like
 Automobile Sector
 Mining Sector
 Aviation Sector
 Media & Entertainment Sector
 Banking Sector
 Medical Sector
 Cement Sector
 Oil & Gas Sector
 Chemicals Sector
 Paint Sector
 Cigarettes Sector
 Paper Sector
 Construction Sector
  Pharmaceutical Sector
 Consumer Durables Sector
 Petrochemicals Courier & Logistic Services Sector
 Power Sector Cycle & Accessories Sector
 Real Estate Sector
 Engineering Sector
 Retail Sector
 Financial Institutions Sector
 Sugar Sector
 Food Products Sector
 Service Sector
 FMCG Sector
 Shipping Sector
 Fertilizer Sector
 Steel Sector
 Garment Sector
 Tele communication Sector
 Health Care Sector
 Textiles Sector etc...

HISTORY IN INIDA

History of Indian Stock Market:

Name of all the approved stock exchange in India is given below:-

1. U.P. Stock Exchange, Kanpur
2. Vadodara Stock Exchange, Vadodara
3. Koyambtour Stock Exchange, Coimbatore *
4. Meerut Stock Exchange, Meerut
5. Mumbai Stock Exchange, Mumbai
6. Over the Counter Exchange of India, Mumbai
7. National Stock Exchange, Mumbai
8. Ahmedabad Stock Exchange, Ahmedabad
9. Bangalore Stock Exchange, Bangalore
10. Bhubaneshwar Stock Exchange, Bhubaneshwar
11. Calcutta Stock Exchange, Kolkata
12. Cochin Stock Exchange, Cochin
13. Delhi Stock Exchange, Delhi
14. Guwahati Stock Exchange, Guwahati
15. Hyderabad Stock Exchange, Hyderabad *
16. Jaipur Stock Exchange, Jaipur
17. Canara Stock Exchange, Mangalore
18. Ludhiana Stock Exchange, Ludhiana
19. Chennai Stock Exchange, Chennai
20. M. P. Stock Exchange, Indore
21. Magadh Stock Exchange, Patna
22. Pune Stock Exchange, Pune
23. Capital Stock Exchange Kerala Ltd. Thiruvananthapuram, Kerala

On July 9, 2007 SEBI has withdrawn its approval from Saurashtra Stock Exchange, Rajkot due
to its passive working. Hence the number of approved stock exchanges are 23.

At present SEBI recognizes a total of 7 stock exchanges across India. These are

BSE LTD VALIDITY- PERMANENT

Calcutta Stock Exchange Ltd. VALIDITY- PERMANENT

India International Exchange (India INX) VALIDITY- Dec 28, 2018

Magadh Stock Exchange Ltd. VALIDITY- PERMANENT

Metropolitan Stock Exchange of India Ltd. VALIDITY- Sep 15, 2018

National Stock Exchange of India Ltd. VALIDITY- PERMANENT

NSE IFSC Ltd. VALIDITY- May 28, 2019

Indian stock market marks to be one of the oldest stock market in Asia. It dates back to
the close of 18th century when the East India Company used to transact loan securities. In the
1830s, trading on corporate stocks and shares in Bank and Cotton presses took place in Bombay.
Though the trading was broad but the brokers were hardly half dozen during 1840 and 1850.
 BOMBAY STOCK EXCHANGE

An informal group of 22 stockbrokers began trading under a banyan tree opposite the Town Hall
of Bombay from the mid-1850s, each investing a (then) princely amount of Rupee 1. This
banyan tree still stands in the Horniman Circle Park, Mumbai. In 1860, the exchange flourished
with 60 brokers. In fact the 'Share Mania' in India began with the American Civil War broke and
the cotton supply from the US to Europe stopped. Further the brokers increased to 250. The
informal group of stockbrokers organized themselves as the Native Share and Stockbrokers
Association which, in 1875, was formally organized as the Bombay Stock Exchange (BSE).

In 1956, the Government of India recognized the Bombay Stock Exchange as the first
stock exchange in the country under the Securities Contracts (Regulation) Act. The most decisive
period in the history of the BSE took place after 1992

The Stock Exchanges are being administered by their governing boards and executive
chiefs. Policies relating to their regulation and control are laid down by the Ministry of Finance.
Government also Constituted Securities and Exchange Board of India (SEBI) in April 1988 for
orderly development and regulation of securities industry and stock exchanges.

BSE is the first exchange in India and the second in the world to obtain an ISO
9001:2000 certifications. It is also the first exchange in the country and second in the world to
receive Information Security Management System Standard BS 7799-2-2002 certification for its
BSE On-line Trading System (BOLT).

With 2.23 trillion BSE ranked 8th position in terms of market capitalisation on November
2017
 Vision
"Emerge as the premier Indian stock exchange with best-in-class global practice in technology,
products innovation and customer service."

BSE Profile

 Address :- Phiroze Jeejeebhoy Towers, Dalal Street Mumbai-400001, India

 Telephone :-91-22-227212334

 Website :-www.bseindia.com

 Trading hours :-Monday-Friday, 9:00am to 3:30pm

 Securities :-Stocks, derivatives, debt

 Trading System :-Electronic

 MD & CEO :-Mr. Ashish Chauhan

 History

Indices of BSE:

 Sensex

 BSE 100(This covers Banking Sector)

 BSE 200(This covers Capital goods)

 BSE 500(This covers Consumer goods)

 BSE mid-cap index

 BSE small-cap index

BSE mid-cap index covers the FMCG sector and BSE small-cap index covers the IT,
Metal, Oil & gas, Power industry, PSUs, etc. BSE disseminates information on the Price-
Earnings Ratio, the Price to Book Value Ratio and the Dividend Yield Percentage on day-to-day
basis of all its major indices.
 The values of all BSE indices are updated every 15 seconds during market hours and
displayed through the BOLT system, BSE website and news wire agencies.

All BSE Indices are reviewed periodically by the BSE Index Committee. This Committee
which comprises eminent independent finance professionals 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.

Awards

 ‘IT Genius Awards 2017’ in the category ‘Data Centre Excellence’ for setup of the India INX
Data Centre by CORE (Centre of Recognition & Excellence)
 Digital Innovation Award 2017 for the Social Media Analytics Project by Netmagic
 Business World Digital Leadership and CIO Award
 The IDC Digital Transformation Awards 2017
 The Best Exchange of the year award for equity and currency derivatives in Tefla's
Commodity Economic Outlook Award 2017
 Best Brand award 2017 by Economic Times
 CIO POWER LIST 2017
 Best Corporate film encompassing Vision, History, Value and Spirit of Excellence award,
Best Corporate film on Employer Branding award and Most Influential HR Leaders in India
award at World HRD Congress 2017
 'Best Exchange of the year' award at 4th India Bullion & Jewellery awards 2017
 Red Hat Innovation Awards 2016 by Red Hat Solutions
 Skoch Achiever Award 2016 for SME Enablement
 Best IT Implementation Award 2016 in the “Most Complex Project Category” by PCQuest
 InfoSec Maestros Awards 2016 .
 Lions CSR Precious Awards 2016
 Golden Peacock Award 2015
 CIO Power List 2015
 SKOCH Rennaissance Award 2014 for Contribution to Economy
 SKOCH Rennaissance Award 2014 for Corporate Social Responsibility
 Netmagic Innovative Champion Award – IT Consolidation growth & Scalability 2014
 India Innovative Awards- Big Data Innovation 2014
 ET Now – CISCO Technology Awards 2014
  Unicom –India Top 50 companies with best software 2014
 India Innovation Award for Big Data Implementation
 ICICI Lombard & ET Now Risk Manager Award in BFSI Category
 SKOCH Order of Merit for E-Boss for qualifying among India’s Best 2013
 Indian Merchant Chamber Award in the Large Enterprise Category for use of Information
Technology
 Best Managed Financial Derivatives Exchange in the Asia Pacific by the The Asian
Banker
 The Golden Peacock Global CSR Award for its initiatives in Corporate Social
Responsibility
 BSE has won NASSCOM - CNBC-TV18’s IT User Awards, 2010 in Financial Services
category
 BSE has won Skoch Virtual Corporation 2010 Award in the BSE StAR MF category
 Responsibility Award (CSR), by the World Council of Corporate Governance

NATIONAL STOCK EXCHANGE

NSE has a market capitalization of around USD 2.27 trillion as on April 2018

And one of the biggest stock exchange in India in terms of market capitalization. Though a
number of other exchanges exist, NSE and the Bombay Stock Exchange are the two most
significant stock exchanges in India, and between them are responsible for the vast majority of
share transactions.

The National Stock Exchange (NSE) is the leading stock exchange in India and the fourth
largest in the world by equity trading volume in 2015, according to World Federation of Exchanges
(WFE).It began operations in 1994 and is ranked as the largest stock exchange in India in terms of
total and average daily turnover for equity shares every year since 1995, based on annual reports
of SEBI.
NSE launched electronic screen-based trading in 1994, derivatives trading (in the form of
index futures) and internet trading in 2000, which were each the first of its kind in India.
NSE has a fully-integrated business model comprising our exchange listings, trading services,
clearing and settlement services, indices, market data feeds, technology solutions and financial
 education offerings. NSE also oversees compliance by trading and clearing members and listed
companies with the rules and regulations of the exchange.
NSE is a pioneer in technology and ensures the reliability and performance of its systems
through a culture of innovation and investment in technology. NSE believes that the scale and
breadth of its products and services, sustained leadership positions across multiple asset classes in
India and globally enable it to be highly reactive to market demands and changes and deliver
innovation in both trading and non-trading businesses to provide high-quality data and services to
market participants and clients.

 Markets:

Currently, NSE has the following major segments of the capital market:

• Equity
• Futures and Options
• Retail Debt Market
• Wholesale Debt Market
• Currency futures
NSE became the first stock exchange to get approval for Interest rate futures as
recommended by SEBI-RBI committee, on 31 August, 2009
AWARDS and achievement
 2016 : CII- Exim Bank Prize for Business Excellence
 2016 : Global Architecture Excellence Awards 2016 - New Service Offering Initiative
 2015 : Golden Peacock Innovative Product / Service Award
 2015 : The Asian Banker Achievement Awards 2015 - Stock Exchange of the Year
 2015 : FOW Awards for Asia - Best New Technology Product - Market Surveillance
 2014 : Futures and Options World Award for Indian Exchange of the Year
 2014 : Global Finance - Best Derivatives Providers Award 2014 for exchange performance
 2014 : CII-Exim Bank Prize for Business Excellence
 2013 : Capital Finance International - Best Stock Exchange Award, India
 2010 : The Asian Banker Achievement Awards for Markets and Exchanges - Financial Derivative
Exchange of the Year Award

Vison and mission of NSE

 To continue to be a leader, establish global presence, facility the finical well-being to
people

NSE is committed to the following core values:

 Integrity
 Customer focussed culture
 Trust, respect and care for the individual
 Passion for excellence
 Teamwork

DEMAT Account

DEMAT account is a facility that allows investors to hold shares in an electronic format. This is
similar to a bank account, where you keep your money. In this case, a DEMAT account holds the
certificates of your financial instruments like shares, bonds, government securities, mutual funds
and exchange traded funds (ETFs).

You need a DEMAT account before you start to trade on India’s stock exchanges.

Understand How Does Demat Account Works:

CENTRAL DEPOSITORY:

There are two depositories in India – the CDSL and NSDL. They hold all the demat
accounts. The central depository holds details of your shareholding on your behalf like banks. Its
main function is the holding securities either in certificated or uncertificated (dematerialized)
form, to enable book entry transfer of securities.

CDSL is promoted by Bombay Stock Exchange Limited (BSE)[4] jointly with State Bank
of India, Bank of India, Bank of Baroda, HDFC Bank, Standard Chartered Bank, Axis
Bank and Union Bank of India

Where as NSDL is promoted by Industrial Development Bank of India Limited (IDBI) -

the largest development bank of India, Unit Trust of India (now, Administrator of the Specified
Undertaking of the Unit Trust of India) and National Stock Exchange of India Limited (NSE) -
the largest stock exchange in India

UNIQUE ID

Each demat account has a unique number for identification purposes. This is the number
you need to provide for transactions. The number will help the exchange and companies identify
you and credit the shares in your account.

DEPOSITORY PARTICIPANTS:

Access to the central depository is provided by the Depository Participants or DPs. They act as
the intermediary between the central depository and the investor. DPs could be banks, brokers or
financial institutions that are empowered to offer demat services. Kotak Securities is one such
Depository Participant (DP). You open a demat account or a Beneficial Owner (BO) accounts
with a DP, who will provide you a unique access to the central depository.
Demat account

The word deamt means dematerialised and account means where share are deposited. It is
created to settle all trade in electronic form in securities market very shareholder will have a
Dematerialized account for the purpose of transacting. Access to this user required n internet
password and a transaction password. Transfers or purchases of securities can then be initiated.
Purchases and sales of securities on the Dematerialized account are automatically made once
transactions are confirmed and completed. 996, trading began on NSE for shares held in demat
account form. It was the beginning of a new paperless trading stock market trading environment

Before demat account company has to issue share certificate to their investor as an
evidence of investment. It was quite a head aching process which was creating problem in mobility.
The main problem was inverse has to go through lots of paper work and stamp duty and other chiefs
to transfer of ownership the share.

Advantage of demat account

 No physical lose or misplace of share

 Increased velocity in security trade
 Avoids extra paper work
 Easy buy and sell of share
 The bonus/right shares allotted to the investor will be immediately credited into his
account. There is no risk due to loss on account of fire, theft or mutilation. Transaction
costs are usually lower than that in the physical segment.

Trading account

It is a special account to place buy or sell orders in the stock market. This is the reason
we need trading account.

The difference between trading and demat account is demat accounts holds all the share
you have and trading account settles the transaction between buyer and seller.
 Let us take an example when we go for buy any vegetable of food we keep some cash in
our wallet. The wallet act as trading account where as demat account act as our bank saving
account.

Benefits

 It is easy to set up and offers telephonic and online access. An investor does not need to
carry physical transactions in order to buy/sell securities.
 It shows the relation between gross profit and sale. This helps to measure an investor’s
profitability position.
 It also reflects the ratio between costs of goods sold and gross profits

Documents required to open an demat account

A. Identity Proof such as Adhar, Driving licence, Passport voter id etc.

B. PAN card ( for income tax)
C. Other documents such as Photo, passbook photocopy etc.