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    What Is Equity Market

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    Vinod Arora
    The document discusses equity markets and the Indian equity market. It provides definitions of an equity market as a system where company shares are traded, offering investors ownership and potential gains. The Indian equity market is the third largest in Asia, with a market capitalization of nearly $600 billion. The market depends on factors like global funding, corporate performance, and monsoons. It was not well-organized before independence but has since developed with organizations like the BSE, NSE, and regulations from SEBI. The Sensex has seen annual returns of 18.62% over 27 years despite various uncertainties like wars, scandals, assassinations, and natural disasters. The document introduces various sectors that companies and their products/services can

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    What Is Equity Market

    Uploaded by

    Vinod Arora
    158 views2 pages
    The document discusses equity markets and the Indian equity market. It provides definitions of an equity market as a system where company shares are traded, offering investors ownership and potential gains. The Indian equity market is the third largest in Asia, with a market capitalization of nearly $600 billion. The market depends on factors like global funding, corporate performance, and monsoons. It was not well-organized before independence but has since developed with organizations like the BSE, NSE, and regulations from SEBI. The Sensex has seen annual returns of 18.62% over 27 years despite various uncertainties like wars, scandals, assassinations, and natural disasters. The document introduces various sectors that companies and their products/services can

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    ABOUT INDIAN EQUITY MARKET

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    What is Equity Market

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    The document discusses equity markets and the Indian equity market. It provides definitions of an equity market as a system where company shares are traded, offering investors ownership and potential gains. The Indian equity market is the third largest in Asia, with a market capitalization of nearly $600 billion. The market depends on factors like global funding, corporate performance, and monsoons. It was not well-organized before independence but has since developed with organizations like the BSE, NSE, and regulations from SEBI. The Sensex has seen annual returns of 18.62% over 27 years despite various uncertainties like wars, scandals, assassinations, and natural disasters. The document introduces various sectors that companies and their products/services can

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    158 views2 pages

    What Is Equity Market

    Uploaded by

    Vinod Arora
    The document discusses equity markets and the Indian equity market. It provides definitions of an equity market as a system where company shares are traded, offering investors ownership and potential gains. The Indian equity market is the third largest in Asia, with a market capitalization of nearly $600 billion. The market depends on factors like global funding, corporate performance, and monsoons. It was not well-organized before independence but has since developed with organizations like the BSE, NSE, and regulations from SEBI. The Sensex has seen annual returns of 18.62% over 27 years despite various uncertainties like wars, scandals, assassinations, and natural disasters. The document introduces various sectors that companies and their products/services can

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    What is Equity Market ?

    “A market where investors buy and sell securities providing ownership of a company's shares.” The
    market in which shares are issued and traded, either through exchanges or over-the-counter markets.
    Also known as the stock market, it 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 equity market
    has become the third biggest after China and Hong Kong in the Asian region. According to the latest
    report by ADB, it has a market capitalization of nearly $600 billion. As of March 2009, the market
    capitalization was around $598.3 billion (Rs 30.13 lakh crore) which is one-tenth of the combined
    valuation of the Asia region. The market was slow since early 2007 and continued till the first quarter of
    2009. The Indian equity market depends on three factors - ✔Funding into equity from all over the
    world ✔Corporate houses performance ✔Monsoons 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 intra day traders.

    The Indian market has 22 stock exchanges. The larger companies are enlisted with BSE and NSE. The
    smaller and medium companies are listed with OTCEI (Over The counter Exchange of India). The
    functions of the Equity Market in India are supervised by SEBI (Securities Exchange Board of India).

    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 ‘Satta Bazaar'.
    Speculators aimed at companies 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.
    !!!!.....Equity Markets climb a wall of worry…..!!!! The Sensex has returned about 18.62 % compounded
    Annual return over the past 27 years in spite of following Uncertainty…..!!! 1 War (With Pakistan –
    Kargil 1999). Increasing Terrorism and threats to Internal Security (Punjab, J&K, Assam , Naxalite
    problem in Bihar & other parts of India). 2 Major financial scandals and a number of minor ones
    (Harshad Mehta, Ketan Pareikh, C.R. Bhansali,Sanjay Agarwal etc). 2 assassinations of Prime ministers
    (Indira Gandhi & Rajiv Gandhi). Number of communal riots (Ayodhya, Godhra - They keep happening
    with immaculate consistency).

    More then 11 different Governments perusing different manifestos and putting all of them under a
    common banner titled Common Minimum Program.. Poor Monsoons on more then 3 to 4 occasions.
    Each year the market speculates as to how the Monsoons have hit the coast of Kerala but over alonger
    period of time they do not matter. More so with increasing irrigation systems and development our
    dependence on monsons will come down further. Mortgage of Gold to tide over the foreign exchange
    crisis (In 1991 the Indian Govt. mortgaged Gold to the Bank of England). Coalition governments have
    governed major portion of the last 25 years. Numerous numbers of natural calamities and disasters
    (Tsunami 2004, Gujarat Earthquake 2001, Surat Plague 1995). In this way, stock prices are rising
    regardless of market uncertainties, so, the stock market is said to be climbing a wall of worry. These
    worries may include political or economic risks etc.

    INTRODUCTION OF VARIOUS SECTORS

    A. Meaning of S ector:

    “There are many companies or scrip that manufacturer the same products and provide services are
    specified under the particular name that called Industry or Sector.”

    There are many other different kinds of industries, and often organized into different classes or variety
    of industrial classifications it’s called Sector.

    In this report, I have study on these Five Sectors

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