Financial market intro

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WELCOME Skill & Employability Generation Academy

Transcript of Financial market intro

Page 1: Financial market intro

WELCOME

Skill & Employability Generation Academy

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WORKSHOP ON

“INDIAN STOCK MARKET-BASIC & CAREER OPPORTUNITIES”

By:Skill & Employability Generation Academy(SEGA)

Presented by:Mr.Sujit Chandra Jha

Speaker:Mr.Pranay Pancholi

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OBJECTIVE OF THE WORKSHOP Awareness about Indian stock market ; Knowledge about working mechanism of

the market; Awareness about modern fields of

investment; Opens your mind about career

opportunities in the capital market; Provide awareness about different career

in this market.

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TOPICS COVERED Introduction of financial market• Classification • Working mechanism of Indian stock

market

• Facts of Indian stock market• Mutual funds

Career and opportunities in Indian Stock market

Concept of “be your own boss”

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INTRODUCTION OF FINANCIAL MARKET

Debt MarketCapital Market (share Market)

Mutual funds

Indian Financial Market

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DEBT MARKETGoverning body in India: Reserve Bank of India (RBI)

Investment Classification Tools Issued by

F.D (Fixed Deposit) Banks

Bonds Government

Debentures Public Ltd. Companies

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CAPITAL MARKET OR STOCK MARKET

Governing body in India: Securities Exchanges Board of India(SEBI)

Various stock exchanges have a dedicated Listing Department to grant approval for listing of securities of companies - in accordance with the provisions of the applicable law/s like

Securities Contracts (Regulation) Act, 1956, Securities Contracts (Regulation) Rules, 1957 Companies Act, 1956 Guidelines issued by SEBI and Rules, Bye-laws and Regulations of the exchange itself.

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WHAT IS SHARE OR STOCKShare:It is the smallest unit of ownership that may be bought or sold on or off an exchange.

Stock: Stocks in the reference of

stock market are the total number of shares a person has in one company or in many companies.

100%Equity

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PRIMARY & SECONDARY MARKET

1. Primary Market:

The first group of investors to whom a new issue of a security is sold.

The primary market consists of the issuer and the first buyers of the issue.

The primary market can be a time more volatile than the secondary market because it is difficult to determine the underlying value of new issues.

2. Secondary Market:

A market where investors purchase securities or assets from other investors, rather than from issuing companies themselves.

The national exchanges - such as the New York Stock Exchange and the BSE are secondary markets.

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STOCK EXCHANGE The purpose of a stock exchange is to facilitate the exchange

of securities between buyers and sellers and reduce the risks of investing.

A stock may be bought or sold only if it is listed on an exchange. Thus it is the meeting place of the stock buyers and sellers.

Stock Exchanges: 2 (main) National Stock Exchange (NSE) Benchmark: NIFTY (50)

Bombay Stock Exchange (BSE) Benchmark: SENSEX (30)

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FACTS OF INDIAN STOCK MARKET There are 17 stock exchanges in India. Out of which only 7

are permanent and rest 10 require their license to be renewed timely. Can you recall any names apart from NSE and BSE?

The record low Sensex has ever touched is 113.28 points in December,1979 and after 35 years, it touched the record high at 28822.37 in November, 2014.

Do you know U.S markets (S&P500 & Dow Jones Industrial Average) contracts can be traded in NSE. The derivatives contracts were introduced in 2011 & it was for the first time, S&P500 were listed on any exchange outside U.S.A

BSE is one of world’s top exchange in terms of listed members. It has more than 5,000 companies on the list.

Did you that on Nov, 2014 India became one of top 10 markets in the world by market capitalization? India market capitalization is approx $1.6 trillion & it is ahead of Switzerland & Australia markets based on Market Cap.

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FACTS OF INDIAN STOCK MARKET

In spite of such a good news, out of a total population of approx 1.2 billion, there are only 20 million demat account holders in India. Sadly, not all are active!

And…Only 2% of Indian household savings are being directed to Equity markets, Indians are so risk-averse!

 Foreign Institutional Investors (FIIs) are the strongest driving force in Indian markets. Among Domestic Institutional Investors (DIIs), LIC leads the way.

The record number of trades Equity F&O were done on 23-12-2014  and it was 52,86,778. In Equities segment, record number of trades were done on 16-05-2014 and it was 1,18,05,386.

On 16-01-2015 , Nifty witnessed the record market capitalization of 98,45,639 crores!

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MUTUAL FUNDS

Receive investment

Investor 1

Investor 2

InvestmentIn

Financial instruments

Provide return to investors

proportionately

Mutual + Funds = Mutual Funds

How does it works :

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CAREER AND OPPORTUNITIES IN INDIAN STOCK MARKET

Sectors available:

Equity Market Derivatives Market Commodity Market

Currency Market Fund Management/ Research Arbitrage Houses

Mutual Fund

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CAREER OPPORTUNITIES IN DIFFERENT ROLES

Trading Client Relationship Operations Advisory/

ResearchProfessional

Trader Equity Advisor Risk Management

Equity Research

Dealer Business Development

Back Office Accounting

Technical Analyst

ArbitrageurClient

Relationship Manager

Compliance Management

Fundamental Analyst

Hedger    Depository Operation

Derivative Analyst 

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BE YOUR OWN BOSS

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QUESTIONS ??

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THANK YOUPlease provide us feedback(queries) @ [email protected] us on 9648092085, 8305238227You can also find us on Facebook(page): Skill & Employability Generation Academy or SEGA Trainers Twitter: @orange_pranay