This document discusses stock indices and the stock market in India. It provides information on key stock indices like the SENSEX and Nifty 50, which track the performance of major companies listed on the Bombay Stock Exchange and National Stock Exchange, respectively. These indices are important because they help investors allocate funds and allow analysts to predict market trends. The document also outlines some determinants of stock indices and how stock exchanges impact the Indian economy and listed companies.

2. INTRODUCTION
 A stock market is a public market for the trading of
companies stock and derivatives at an agreed price;
these are securities listed on a stock exchange as well
as those only traded privately.
 A place where shares, stocks and bonds are bought and
sold.

3. IMPORTANCE
 Indices help to recognize broad trends in the market.
 The investors can use the indices to allocate the funds
rationally among the stocks
 Technical analysts use these indices to predict the
future market
 Indices function as status report on the general
economy
 Stock market indices are the barometers of the stock
markets.

4. DETERMINANTS OF A STOCK INDEX
 LIQUIDITY
 DIVERSIFICATION
 OPTIMUM SIZE
 MARKET CAPITALIZATION
 AVERAGE

6. BOMBAY STOCK EXCHANGE(BSE)
 BSE is the oldest stock exchange in Asia with a rich
heritage of over 133 years of existence
 BSE is the first stock exchange in the country which
obtained permanent recognition from the govt of
India under the securities contract act of 1956.
 BSE has facilitated the growth of the indian corporate
sector by providing it with cost and time efficient
access to resource.

7. SENSEX
 The index includes 30 companies which figure in top
100 in terms of market capitalization and are also
among the leaders in there industry groups
 Example:- ICICI bank, Dr Reddy’s lab,
cipla,hcl,nestle,BHEL,palmolive

8. NATIONAL STOCK EXCHANGE(NSE)
 The NSE of India is situated in Mumbai is the largest
and most advanced exchange with 1016 companies
listed and 726 trading members.
 The NSE is owned by the group of leading financial
institutions such as Indian bank or lic.

9. Nifty
 Nifty is S&P endorsed stock index owned by the Indian
Index Service Ltd(IISL)
 It is a highly diversified index, accurately reflecting
the overall market conditions and is composed of 50
liquid stocks.

10. Signals of stock exchange increase
 Rise in earnings.
 Increase in assets as debts are stable or increasing.
 Positive publicity for industry.
 Heavy insider or corporate buying.
 Powerful demographics.

12. Effects of stock exchange on Indian
economy
 Wealth effect.
 Effect on pension.
 Investments.
 Raising funds for companies.

13. Effects on companies
 Difficult to issue share right.
 Firm is trying to take over.
 A collapsing share price is often a reflection of badly
performing firm..

14. Presented by:-
 Syeda Shaziya Erum
 Ajay C
 Aishwarya
 Abhishek G
 Abhishek M N
 Akul D
 Bharath Supratik
 Narasimha
 Ayesha Amreen