Sri Balaji society’s

Balaji College Of Arts, Commerce & Science (BCACS)

(Affiliated to university of Pune vide code No.0781 with ID No. PU/PN/AC/191/2003 and
in the approved panel of Govt. of Maharashtra)
A PROJECT REPORT
ON
Comparative Study of NSE and NASDAQ
Savitribai Phule Pune University
In partial fulfillment of
Bachelors of Business Administration
For the
ACADEMIC YEAR 2022- 23
Submitted by
Ravishankar Cherukupalli
SYBBA
Roll no BBA21005
Under the guidance of
Prof. Neha Shrivastav
CERETIFCATE
 ACKNOWLEDGEMENT

I would like to thank Prof. Neha Shrivastav for helping me

with this project. She allowed me to work on this project.
Along with that, I would also like to thank Principal Dr.O.M.
Ashtankar wholeheartedly.

I would also want to thank my parents and friends who helped

me in finalizing this project within a limited time frame.
 INDEX
SR NO. Topic Page no.

1. Introduction to stock market 5

2. National Stock Exchange (NSE) 12

3. NASDAQ 15

4. NASDAQ VS NSE 19

5. MARKET CAPITALISATION OF NSE 24

6. MARKET CAPITALISATION OF NASDAQ 29

7. Findings and Suggestion 37

8. Conclusion 38

9. Bibliography 39
 INTRODUCTION

The stock market refers to the collection of markets and exchanges where regular activities of
buying, selling, and issuance of shares of publicly held companies take place. Such financial
activities are conducted through institutionalized formal exchanges or over-the counter (OTC)
marketplaces which operate under a defined set of regulations. There can be multiple stock
trading venues in a country or a region which allow transactions in stocks and other forms of
securities. The stock market or equity market and is primarily known for trading stocks/equities,
other financial securities - like exchange traded funds (ETF), corporate bonds and derivatives
based on stocks, commodities, currencies, and bonds - are also traded in the stock markets.
While both terms - stock market and stock exchange - are used interchangeably, the latter term is
generally a subset of the former. If one says that he/she trades in the stock market, it means that
he/she buys and sells shares/equities on one (or more) of the stock exchange(s) that are part of
the overall stock market. The leading stock exchanges in the U.S. include the New York Stock
Exchange (NYSE), Nasdaq, and the Chicago Board Options Exchange (CBOE). These leading
national exchanges, along with several other exchanges operating in the country, form the stock
market of the U.S. Stock market is a place where people buy/sell shares of publicly listed
companies. It offers a platform to facilitate seamless exchange of shares. In simple terms, if A
wants to sell 10 shares of Reliance Industries, the stock market will help him to meet the seller
who is willing to buy Reliance Industries.

However, it is important to note that a person can trade in the stock market only through a
registered intermediary known as a stockbroker. The buying and selling of shares take place
through electronic medium. There are two main stock exchanges in India where majority of the
trades take place - Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
Apart from these two exchanges, there are some other regional stock exchanges like Bangalore
Stock Exchange, Madras Stock Exchange etc. but these exchanges do not play a meaningful role
anymore.
 HOW THE STOCK MARKET WORKS

Stock markets provide a secure and regulated environment where market participants can
transact in shares and other eligible financial instruments with confidence with zero- to
low-operational risk. Operating under the defined rules as stated by the regulator, the stock
markets act as primary market and as secondary markets.
As a primary market, the stock market allows companies to issue and sell their shares to the
common public for the first time through the process of initial public offerings (IPO). This
activity helps companies raise necessary capital from investors. Investors will get the company
shares which they can expect to hold for their preferred duration, in anticipation of a rise in share
price and any potential income in the form of dividend payments. The stock exchange acts as a
facilitator for this capital raising process and receives a fee for its services from the company and
its financial partners.

Following the first-time share issuance IPO exercise called the listing process, the stock
exchange also serves as the trading platform that facilitates regular buying and selling of the
listed shares. This constitutes the secondary market. The stock exchange earns a fee for every
trade that occurs on its platform during secondary market activity.
The stock exchange shoulders the responsibility of ensuring price transparency, liquidity, price
discovery and fair dealings in such trading activities. As almost all major stock markets across
the globe now operate electronically, the exchange maintains trading systems that efficiently
manage the buy and sell orders from various market participants. They perform the price
matching function to facilitate trade execution at a price fair to both buyers and sellers.
A listed company may also offer new, additional shares through other offerings at a later stage,
like through rights issue or through follow-on offers. They may even buyback or delist their
shares. The stock exchange facilitates such transactions.
 FUNCTIONS OF A STOCK MARKET

Fair Dealing in Securities Transactions: Depending on the standard rules of demand and
supply, the stock exchange needs to ensure that all interested market participants have instant
access to data for all buy and sell orders thereby helping in the fair and transparent pricing of
securities. Additionally, it should also perform efficient matching of appropriate buy and sell
orders.
Liquidity Maintenance: While getting the number of buyers and sellers for a particular
financial security is out of control for the stock market, it needs to ensure that whosoever is
qualified and willing to trade gets instant access to place orders which should get executed at a
fair price.
Investor Protection: Along with wealthy and institutional investors, a very large number of
small investors are also served by the stock market for their small number of investments. These
investors may have limited financial knowledge and may not be fully aware of the pitfalls of
investing in stocks and other listed instruments. The stock exchanges must implement necessary
measures to offer the necessary protection to such investors to shield them from financial loss
and ensure customer trust.
Security and Validity of Transactions: While more participants are important for efficient
working of a market, the same market needs to ensure that all participants are verified and
remain compliant with the necessary rules and regulations, leaving no room for default by any of
the parties. Additionally, it should ensure that all associated entities operating in the market must
also adhere to the rules, and work within the legal framework given by the regulator.
 TYPES OF STOCK MARKET

1.Classification based on stock classes- There are some stocks that do not give the shareholders
the power to vote at the annual meetings where the decisions regarding the management of the
company and such issues take place. Unlike these stocks, there are some other stocks that allow
shareholders to participate in the decision making in the company matters, by casting their votes.

2.Classification based on market capitalization- Stocks can be classified based on the market
capitalization of the company, which is the total shareholding of a company. This is calculated by
multiplying the current price of the company stock with the total number of shares outstanding in
the market. Listed below are the types of stocks based on market capitalization.

I. Large Cap Stocks

These are often stocking of Blue-chip companies which are established enterprises with large
reserves of cash at their disposal. It is interesting to note that the larger size of the large cap
companies does not mean that they grow more rapidly. In fact, it is the small stock companies
that tend to outperform them over the longer time frame. But large cap stocks do come with the
benefit of allowing the investors to reap higher dividends in comparison to the smaller and mid
cap companies’ stocks, ensuring that the capital is preserved over the long-term period.

II. Mid Cap Stocks

These are the stocks of medium sized companies that have a market capitalization of INR 250
Crore to about INR 4000 crore. These companies have a well recognize name in the market
which brings along the benefit of potential for growth, as well as the stability that is usually
accompanied with being a seasoned player in the market. Mid cap companies have a good track
record of steady growth and are very similar to blue chip stocks barring their size. In the long
term these stocks do and grow well.

III. Small Cap Stocks

As is suggestive of the name, small cap stocks have the smallest value in the market as compared
to their counterparts. These are small-sized companies that have a market capitalization of up to
INR 250 and have the potential to grow at a good pace in the future. Investors who are willing to
commit to a long term and are not very particular about the current dividends and are willing to
stand their ground during price volatility, can make significant gains in the future. As an investor
you can buy these stocks when they are available at a cheap price during the initial stage of the
company. There is no certainty about how the company will perform in the market since they are
relatively new. Because these small cap companies are new, they are highly volatile, and their
growth impacts the value and revenue of the company to a huge extent.

3. Classification based on ownership

Based on wonder ship, there are three types of stocks that investors can own which offer their
different rights and growth potential.

I. Preferred & common stocks

Preferred stocks offer investors a fixed amount of dividend every year unlike common stocks.
The price of preferred stocks is not as volatile as common stock, but it is common stock that gets
the benefit of priority when the company has surplus money to distribute. At the time of
company liquidation, it is the company’s creditors, its bond holders, debenture holders who get
priority over the preferred shareholders. Common stockholders have voting rights, a privilege
preferred shareholders do not enjoy.

II. Hybrid Stocks

There are companies that offer preferred shares with the option of converting them to common
shares, with conditions, at a certain point in time. These are known as hybrid stocks or
convertible preferred shares and may or may not have voting rights.

III. Stocks with embedded derivative options

Stocks that come with the embedded derivative option means that they can be ‘callable’ or
‘potable’ and are not as commonly available. A ‘callable’ stock has the option of being bought
back by the company for a certain price at a certain point in time. Similarly, a ‘potable’ stock
offers its holder to sell it to the company at a certain price and time.
4. Classification based on dividend payment

I. Growth Stocks
These stocks do not pay high dividends as the company prefers to reinvest the earnings to enable
it to grow faster, hence, the name growth stocks. The value of the shares of the company rises
with the fast growth rate which in turn allows investors to profit through higher returns. It is best
suited for those investors who seek long term growth potential and not an immediate second
source of income. Growth stocks carry higher risk than their counterpart.

II. Income Stocks

In comparison to growth stocks, income stocks hand out a higher dividend in relation to the price
of the share. Higher dividends translate to higher income; hence, the name Income Stocks.
Income stocks are indicative of a stable company that can afford consistent dividends, but these
are also companies that do not promise very high growth. This means that the stock price of such
companies may not rise much. Income stocks also includes preferred stocks. IT is a good
investment for those investors who seek a secondary source of income through relatively low
risk stocks. The dividend income in income stocks is not taxed and thus is great for investors of
low risk profile who want long term investment. You may want to use the dividend yield
measure to find such stocks that offer high dividends.

5. Classification based on fundamentals

Investors who believe that a share price must equal the intrinsic value of the company’s share,
the value investing investors, compare the share prices with components like per share earnings,
profits etc. to reach an intrinsic value per share.

I. Overvalued Shares
These are shares with prices that exceed the intrinsic value and are considered overvalued.
ii. Undervalued Shares
These types of shares are popular amongst the value investors as they believe that the price of the
share would rise in the future.
6. Classification based on Risk
The risk level of stocks differs depending on the share price fluctuations. Stocks with higher risk
reward the investor with higher returns, while low risk stocks generate low returns.
I. Beta Stocks
The beta or the measure of risk is derived by calculating the price volatility of the stock. Beta can
be positive or negative which denotes whether it moves in sync with the market or against it. The
higher the beta, the higher is the risk quotient of the stock. If the beta value is more than 1 it
means that the stock is more volatile than the market. A lot of investors with knowledge of this
measure use it to make their investment decisions.
ii. Blue Chip Stocks
Blue chip stocks are stocks of those companies that have lower liabilities and stable earnings,
and which pay regular dividends. These very large and well-recognized companies that have a
long history of sound financial performance are a good bet for Investors who seek safer avenues
of investment.
 NATIONAL STOCK EXCHANGE (NSE)

National Stock Exchange of India Limited (NSE) is one of the leading stock exchanges in
India, based in Mumbai. NSE is under the ownership of various financial institutions such as
banks and insurance companies. It is the world's largest derivatives exchange by number of
contracts traded and the third largest in cash equities by number of trades for the calendar year
2022. It is one of the largest stock exchanges in the world by market capitalization. NSE's
flagship index, the NIFTY 50, a 50-stock index is used extensively by investors in India and
around the world as a barometer of the Indian capital market. The NIFTY 50 index was launched
in 1996 by NSE.
History
National Stock Exchange was incorporated in the year 1992 to bring about transparency in the
Indian equity markets. NSE was set up at the behest of the Government of India based on the
recommendations laid out by the Pherwani committee in 1991 and the blueprint was prepared by
a team of five members (Ravi Narain, Raghavan Puthran, K Kumar, Chitra Sankaran and
Ashishkumar Chauhan) along with Dr. R H Patil and SS Nadkarni who were deputed by IDBI in
1992. Instead of trading memberships being confined to a group of brokers, NSE ensured that
anyone who was qualified, experienced, and met the minimum financial requirements were
allowed to trade. NSE commenced operations on 30 June 1994 starting with the wholesale debt
market (WDM) segment and equities segment on 03 November 1994. It was the first exchange in
India to introduce an electronic trading facility. Within one year of the start of its operations, the
daily turnover on NSE exceeded that of the BSE. Operations in the derivatives segment
commenced on 12 June 2000. In August 2008, NSE introduced currency derivatives.
NSE EMERGE

NSE EMERGE is NSE’s new initiative for Small and medium-sized enterprises (SME) &
Start-up companies in India. These companies can get listed on NSE without an Initial public
offering (IPO). This platform will help SME’s & Start-ups connect with investors and help them
with the raising of funds. On 8 July 2015, Sucheta Dalal wrote an article on Money life alleging
that some NSE employees were leaking sensitive data related to high frequency trading or
co-location servers to a select set of market participants so that they could trade faster than their
competitors. NSE alleged defamation in the article by Money life. On 22 July 2015, NSE filed a
₹1 billion (US$14 million) suit against Money life. However, on 9 September 2015, the Bombay
High Court dismissed the case and fined NSE ₹5 million (US$70,000) in this defamation case
against Money life (The High Court asked NSE to pay ₹150,000 (US$2,100) to each journalist
Debashis Basu and Sucheta Dalal and the remaining ₹4.7 million (US$66,000) to two hospitals.
The Bombay High Court has stayed the order on costs for a period of two weeks, pending the
hearing of the appeal filed by NSE. In May 2019 SEBI debarred NSE from accessing the
markets for a period of 6 months. While NSE confirmed this will not impact their functioning,
they won’t be able to list their IPO or introduce any new trading products for that period.
Additionally, the watchdog also ordered NSE to disgorge Rs 624.9 crores (along with accrued
interest for the period), an amount equivalent to the profits it made from the unfair trade practice
of co-location servers they provided during the period from 2010–11 to 2013–14.

Crashes of 2020
On 1 February 2020, as the FY 2020-21 Union budget was presented in the lower house of the
Indian parliament, Nifty fell by over 3% (373.95 points). The fall was also weighed by the global
breakdown amid coronavirus pandemic cantered in China. On 28 February 2020, Nifty fell by
432 points due to growing global tension caused by coronavirus, which W.H.O said has a
pandemic potential. Both BSE and NSE fell for the entire five days of the week ending with the
worst weekly fall since 2009. On 6 March 2020, Yes Bank was taken over by RBI under its
management for reconstruction and will be merged with SBI. This was done to ensure the
smooth functioning of the bank as it was struggling for a couple of years to come up with heavy
pressure due to the cleaning of bad loans. On 9 March 2020, the Nifty50 broke down by 538
points. The fear of COVID-19 outbreak has created havoc all over the globe and India is no
exception. Further, the recent Yes, Bank crisis also made the markets fell. The markets ended in
the red with Nifty-50 on 10,451.45.

Markets
The National Stock Exchange of India Limited (NSE) commenced trading in derivatives with the
launch of index futures on 12 June 2000. The futures and options segment of NSE has made a
global mark. In the Futures and Options segment, trading in the NIFTY 50 Index, NIFTY IT
index, NIFTY Bank Index, NIFTY Next 50 index, and single stock futures are available. Trading
in Mini Nifty Futures & Options and Long-term Options on NIFTY 50 are also available. The
average daily turnover in the F&O Segment of the Exchange during the financial year April 2013
to March 2014 stood at ₹1.52236 trillion (US$19 billion).
On 3 May 2012, the National Stock exchange launched derivative contracts (futures and options)
on FTSE 100, the widely tracked index of the UK equity stock market. This was the first of its
kind index of the UK equity stock market launched in India. FTSE 100 includes the 100 of
largest UK-listed blue-chip companies and has given returns of 17.8 percent on investment over
three years. On 10 January 2013, the National Stock Exchange signed a letter of intent with the
Japan Exchange Group, Inc. (JPX) on preparing for the launch of NIFTY 50 Index futures, a
representative stock price index of India, on the Osaka Securities Exchange Co., Ltd. (OSE), a
subsidiary of JPX.

Mr. Girish Chandra Chaturvedi

Chairman & Public Interest Director
Of NSE
 NASDAQ

NASDAQ Stock Market is one of the most popular American stock exchanges since 1971. It
stands for National Association of Securities Dealers Automated Quotations and allows
investors to trade in securities without doing it in person. Some of the most high-value stocks in
the world such as Google parent Alphabet (GOOG, GOOGLE), Meta Platforms Inc. (META),
Apple Inc. (AAPL), Microsoft (MSFT), Amazon.com Inc. (AMZN), and Tesla Inc. (TSLA) are
traded on NASDAQ. In terms of trading volume, NASDAQ ranks ahead of all other stock
exchanges in the US, including NYSE. The trading technology employed by NASDAQ is also
used by over 100 stock exchanges in more than 50 countries. Since 2008, NASDAQ has been
part of the S&P 500 Index. Like NSE, NASDAQ uses a variety of indices that represent the
status of the market. NASDAQ Composite and NASDAQ 100 are the primary indices used at
this exchange.

While the NASDAQ Composite Index tracks the changes in more than 3000 stocks traded on it,
NASDAQ 100 represents the capitalization-weighted index for the 100 most extensive stocks
traded on NASDAQ. Depending on the market value of these stocks, they can be removed from
the NASDAQ 100 index every year.
The Nasdaq Stock Market has three different market tiers:

● Capital Market (NASDAQ-CM small cap) is an equity market for companies that
have relatively small levels of market capitalization. Listing requirements for such
"small cap" companies are less stringent than for other Nasdaq markets that list larger
companies with significantly higher market capitalization.
● Global Market (NASDAQ-GM mid cap) is made up of stocks that represent the
Nasdaq Global Market. The Global Market consists of 1,450 stocks that meet
Nasdaq's strict financial and liquidity requirements, and corporate governance
standards. The Global Market is less exclusive than the Global Select Market.
● Global Select Market (NASDAQ-GS large cap) is a market capitalization-weighted
index made up of US-based and international stocks that represent the NASDAQ
Global Select Market Composite (NQGS). The Global Select Market consists of
1,200 stocks that meet Nasdaq's strict financial and liquidity requirements and
corporate governance standards. The Global Select Market is more exclusive than the
Global Market. Every October, the Nasdaq Listing Qualifications Department reviews
the Global Market Composite to determine if any of its stocks have become eligible
for listing on the Global Select Market.

HISTORY
"Nasdaq" was initially an acronym for the National Association of Securities Dealers Automated
Quotations. It was founded in 1971 by the National Association of Securities Dealers (NASD),
now known as the Financial Industry Regulatory Authority. On February 8, 1971, the Nasdaq
stock market began operations as the world's first electronic stock market. At first, it was merely
a "quotation system" and did not provide a way to perform electronic trades.

The NASDAQ Stock Market eventually assumed many major trades that had been executed by
the over-the-counter (OTC) system of trading, but there are still many securities traded in this
fashion. As late as 1987, the Nasdaq exchange was still commonly referred to as "OTC" in media
reports and in the monthly Stock Guides (stock guides and procedures) issued by Standard &
Poor's Corporation.
In 1981, Nasdaq traded 37% of the U.S. securities markets' total of 21 billion shares. By 1991,
Nasdaq's share had grown to 46%. In 1992, the Nasdaq Stock Market joined with the London
Stock Exchange to form the first intercontinental linkage of capital market. In 1998, it became
the first stock market in the United States to trade online, using the slogan "the stock market for
the next hundred years". The Nasdaq Stock Market attracted many companies during the
dot-com bubble.

Its main index is the NASDAQ Composite, which has been published since its inception. The
QQQ exchange-traded fund tracks the large-cap NASDAQ-100 index, which was introduced in
1985 alongside the NASDAQ Financial-100 Index, which tracks the largest 100 companies in
terms of market capitalization.

On March 10, 2000, the NASDAQ Composite stock market index peaked at 5,132.52, but fell to
3,227 by April 17, and, in the following 30 months, fell 78% from its peak.
In a series of sales in 2000 and 2001, FINRA sold its stake in the Nasdaq. On July 2, 2002,
Nasdaq Inc. became a public company via an initial public offering. In 2006, the status of the
Nasdaq Stock Market was changed from a stock market to a licensed national securities
exchange. In 2007, it merged with OMX, a leading exchange operator in the Nordic countries,
expanded its global footprint, and changed its name to the NASDAQ OMX Group.
To qualify for listing on the exchange, a company must be registered with the United States
Securities and Exchange Commission (SEC), must have at least three market makers (financial
firms that act as brokers or dealers for specific securities) and must meet minimum requirements
for assets, capital, public shares, and shareholders.

In February 2011, in the wake of an announced merger of NYSE Euronext with Deutsche Börse,
speculation developed that NASDAQ OMX and Intercontinental Exchange (ICE) could mount a
counter-bid of their own for NYSE. NASDAQ OMX could be looking to acquire the American
exchange's cash equities business, ICE the derivatives business. At the time, "NYSE Euronext's
market value was $9.75 billion. Nasdaq was valued at $5.78 billion, while ICE was valued at
$9.45 billion."[ Late in the month, Nasdaq was reported to be considering asking either ICE or
the Chicago Mercantile Exchange to join in what would probably have to be, if it proceeded, an
$11–12 billion counterbid.

The European Association of Securities Dealers Automatic Quotation System (EASDAQ) was
founded as a European equivalent to the Nasdaq Stock Market. It was purchased by NASDAQ in
2001 and became NASDAQ Europe. In 2003, operations were shut down as a result of the burst
of the dot-com bubble. In 2007, NASDAQ Europe was revived first as Equiduct and was
acquired by Börse Berlin later that year.
On June 18, 2012, Nasdaq OMX became a founding member of the United Nations Sustainable
Stock Exchanges Initiative on the eve of the United Nations Conference on Sustainable
Development (Rio+20).

In November 2016, chief operating officer Adena Friedman was promoted to chief executive
officer, becoming the first woman to run a major exchange in the U.S.
In 2016, Nasdaq earned $272 million in listings-related revenues.
In October 2018, the SEC ruled that the New York Stock Exchange and Nasdaq did not justify
the continued price increases when selling market data.
In December 2020, NASDAQ announced that it would strip its indexes of four Chinese
companies in response to Executive Order 13959.

NASDAQ president and chief executive officer is Adena Friedman.

 NASDAQ vs. NSE

Nasdaq NSE

Established 1971 1992

Full Name National Association of National Stock Exchange

Securities Dealers
Automated Quotations

Benchmark Index NASDAQ 100 Nifty 50

Market Capitalisation 1327 Trillion 272 Trillion

Listed Companies Around 3000 Around 2133

Website www.nasdaq.com www.nseindia.com

Types of Companies Internet, biotech, high Blue chips, Banks, Pharma,

tech, young, fast growing industrials

Volatility Volatile More volatile

Global Rank 2nd 8th

Products Equity, Currency, Stocks, Derivatives, Future and
Commodity, Derivatives, Option Market, Commodities
ETFs, MFS.

Related Indices Nasdaq Composite, Nifty 50, Nifty 100,

Nasdaq-100

US Securities and Securities and Exchange

Regulation
Exchange Commission Board of India (SEBI)
(SEC)

Adena Friedman Girish Chandra Chaturvedi

Chairperson

New York City Mumbai

Location
 Top Performing Sectors

Nifty NASDAQ

Financials (41.95%) Infotech (22.4%)

Infotech (14.87%) Industrials (18.2%)

Oil & Gas (11.86%) Financials (15.2%)

FMCG (11.06%) Healthcare (13.1%)

Automobiles (4.93%) Consumer Discretionary (12.9%)

It is clear from the above table that financials dominate the Nifty while NASDAQ favors tech
firms.
 Performance

Years Nifty NASDAQ

2013 6.76% 34.99%

2014 31.39% 17.94%

2015 -4.06% 8.43%

2016 3.01% 5.89%

2017 28.65% 31.52%

2018 3.15% -1.04%

2019 12.02% 37.96%

2020 14.17% 47.58%

 2021 24.12% 26.63%

2022 4.32% -32.97%

In terms of yearly performance, the NASDAQ index has given a better return than the NSE Nifty
in six of the last ten years.

Correlation

For the unversed, correlation is a measure of the mutual relationship (or lack of) between two
variables. It basically indicates whether the two variables move together or move in opposing
directions or have no relationship with one another. A correlation coefficient of 1 indicates a
perfectly direct relationship in which the two variables move together, a correlation of -1
indicates a perfectly inverse relationship and a correlation of 0 indicates that there is no
relationship between the two variables at all.

I compared the monthly returns of the last ten years of the two indices and computed a
correlation coefficient of 0.54. This indicates that there is a semi-strong relationship between the
two markets and hence any diversification strategies must be handled with caution. Furthermore,
the correlation coefficient in the last three years has been 0.64 which indicates that there is a
definite relationship between the two.
 MARKET CAPITALISATION OF NSE (NIFTY)

NIFTY 50 is NSE's diversified index comprising stocks from top 50 Indian companies across 14
sectors. It tracks the market performance of the largest cap companies & hence, broadly reflects
the Indian economy. The NIFTY 50 index is India’s premier stock index. Launched on April 1,
1996, it's computed using the free float market capitalization method.

MARKET
COMPANY INDUSTRY MARKET CAP
PRICE

RELIANCE IND. ENERGY 2,441.8 16,511,279

TCS SOFTWARE 3,230.7 12,122,829

HDFC BANK BANKING 1,625.7 8,953,522

ICICI BANK BANKING 927.0 6,399,379

HUL FMCG 2,500.8 5,875,653

INFOSYS SOFTWARE 1,259.1 5,363,247

ITC FMCG 428.8 5,275,818

SBI BANKING 576.5 5,145,039

HDFC FIN. 2,702.3 4,864,669

INSTITUTIONS
 BHARTI AIRTEL TELECOM 787.3 4,295,160

BAJAJ FINANCE FINANCE 6,389.9 3,850,443

KOTAK MAHINDRA BANKING 1,928.7 3,819,749

BANK

L&T ENGINEERING 2,377.5 3,338,620

ASIAN PAINTS PAINTS 3,013.0 2,890,015

HCL SOFTWARE 1,055.6 2,864,409

TECHNOLOGIES

MARUTI SUZUKI AUTO 8,948.7 2,703,209

AXIS BANK BANKING 865.3 2,649,086

TITAN CONSUMER 2,732.9 2,426,231

DURABLES

SUN PHARMA PHARMA 970.5 2,328,435

ULTRATECH CEMENT 7,628.8 2,201,953

CEMENT

WIPRO SOFTWARE 379.4 2,168,399

NESTLE FOOD 22,019.9 2,123,060

BEVERAGES
 ONGC ENERGY 160.3 2,016,619

JSW STEEL STEEL 733.4 1,772,669

NTPC POWER 174.3 1,689,644

M&M AUTO 1,211.2 1,505,755

TATA MOTORS AUTO 477.1 1,473,749

COAL INDIA MINING 237.4 1,463,032

ADANI PORTS & MISCELLANE 683.9 1,389,515

SEZ OUS

TATA STEEL STEEL 108.7 1,327,192

POWER GRID POWER 241.1 1,261,075

SBI LIFE INSURANCE 1,173.7 1,173,747

INSURANCE

GRASIM TEXTILES 1,752.5 1,153,059

HDFC LIFE INSURANCE 539.7 1,090,440

INSURANCE

TECH MAHINDRA SOFTWARE 1,036.4 1,002,637

HINDALCO ALUMINIUM 434.3 975,579

 EICHER MOTORS AUTO 3,355.1 916,804

DIVIS PHARMA 3,290.8 873,604

LABORATORIES

DR. REDDYS LAB PHARMA 4,942.5 821,928

INDUSIND BANK BANKING 1,073.3 812,601

BPCL ENERGY 365.5 792,753

IOC OIL & GAS 82.8 779,492

CIPLA PHARMA 924.8 745,810

TATA CONSUMER FOOD 776.3 715,355

BEVERAGES

UPL CHEMICALS 714.9 546,178

HERO MOTOCORP AUTO 2,547.3 508,858

BAJAJ FINSERV FINANCE 1,359.3 216,308

Benefits of investing in NIFTY50 Index Funds:

Diversification – It deploys the investment in multiple companies and sectors thereby reducing
risk compared to investing in a single or small set of companies. Over time Nifty 50 replaces the
underperforming companies at a market level with performing one.
Wide market presence – Nifty 50 Index funds are quite popular in India and have a substantial
market presence.

Low cost - These funds have lower operating expenses as fund managers simply need to
replicate the index.

Inflation + returns - Index funds have consistently generated inflation beating returns over the
long term. Coupled with low costs it becomes excellent value for investors.

RISK AND RETURN OF NSE

NASDAQ is a broader index compared to Nifty, consisting of 50 large companies listed on

National Stock Exchange of India (NSE). Over the years, Nifty50 has become the most widely
used benchmark for exchange traded products in the Indian equity market. Growth rate of India’s
GDP is fairly captured in the growth story of Nifty50. Over the years, India has been one of the
fastest growing large economies of the world which is also reflected in the rise of Nifty50 Index.
Nifty 50 returns and Nifty 50 total returns index -The dividends of the stocks in the Nifty 50
are assumed to be reinvested in the index after the close of the ex-date. Such an index is called
the Total Returns index. The Nifty 50 has a TRI version also available and the same is used as a
benchmark for several mutual funds. The total returns index therefore has a higher return than
the Nifty 50 when considered for any period of time.
 MARKET CAPITALISATION OF NASDAQ

Ranking Company Stock Symbol Market Cap (USD)

1 Apple Inc. AAPL $2.067 T

2 Microsoft MSFT $1.788 T

Corporation

3 Alphabet Inc. GOOGL $1.158 T

4 Alphabet Inc. GOOG $1.158 T

5 Amazon.com, AMZN $875.51 B

Inc.

6 Tesla, Inc. TSLA $388.97 B

7 Nvidia NVDA $364.18 B

Corporation

8 Meta Platforms, META $319.89 B

Inc.
9 PepsiCo, Inc. PEP $248.90 B

10 Broadcom Inc. AVGO $231.29 B

11 ASML Holding ASML $229.28 B

N.V.

12 AstraZeneca plc AZN $217.81 B

13 Costco Wholesale COST $201.13 B

Corporation

14 Cisco Systems, CSCO $196.94 B

Inc.

15 T-Mobile US, Inc. TMUS $174.18 B

Verizon
16 Communications VZ $165.47 B
Inc.

17 Adobe Inc. ADBE $156.63 B

18 Comcast CMCSA $153.78 B
Corporation

19 Texas Instruments TXN $149.99 B

Incorporated

20 Amgen Inc. AMGN $139.61 B

21 Netflix, Inc. NFLX $135.31 B

22 Sanofi SNY $124.09 B

23 Qualcomm QCOM $123.24 B

Incorporated

24 Pinduoduo Inc. PDD $116.34 B

25 Starbucks SBUX $113.86 B

Corporation

26 Intel Corporation INTC $110.31 B

27 Intuit Inc. INTU $109.89 B

28 Gilead Sciences, GILD $107.68 B

Inc.

29 JD.com, Inc. JD $106.46 B

30 Advanced Micro AMD $103.22 B

Devices, Inc.

31 Automatic Data ADP $98.59 B

Processing, Inc.

32 Intuitive Surgical, ISRG $93.87 B

Inc.

33 Mondelez MDLZ $91.76 B

International, Inc.

34 Analog Devices, ADI $82.74 B

Inc.

35 Conversion Labs, CVLB $82.27 B

Inc.
36 Applied AMAT $81.65 B
Materials, Inc.

37 PayPal Holdings, PYPL $81.13 B

Inc.

Regeneron
38 Pharmaceuticals, REGN $79.53 B
Inc.

39 Booking BKNG $78.83 B

Holdings Inc.

Vertex
40 Pharmaceuticals VRTX $74.13 B
Incorporated

41 Moderna, Inc. MRNA $68.42 B

42 CSX Corporation CSX $64.92 B

43 Fiserv, Inc. FISV $64.27 B

 44 Equinix, Inc. EQIX $61.31 B
(REIT)

45 CME Group Inc. CME $60.78 B

46 Lam Research LRCX $58.27 B

Corporation

47 Micron MU $54.59 B
Technology, Inc.

48 Airbnb, Inc. ABNB $54.14 B

49 KLA Corporation KLAC $53.36 B

Monster
50 Beverage MNST $52.95 B
Corporation

Benefits of investing in NASDAQ100 Index Funds: Nasdaq 100 comprises the 100
largest global non-financial companies listed on the US stock exchange. The US is home to the
world’s biggest financial and tech companies. The exclusion of the financial biggies makes the
index technology-heavy. Companies such as Apple, Microsoft, Alphabet, and Facebook feature
in the index’s top holdings. Technology companies, in total, account for 44% of the index. The
allocation to the top 10 holdings is around 53.38%
The allocation is slightly on the higher side. It is essential to understand that a portfolio
concentrated towards a few sectors and stocks may deliver higher returns during rising markets
but is also likely to hit harder during market corrections. As Nasdaq 100 index has a tech-heavy
portfolio, its performance will be dependent on the technology stocks.

● High growth and innovative large cap companies

NASDAQ 100 comprises innovative and disruptive technology companies. These
companies are impacting our daily lives in unprecedented ways and have the potential for
high growth.

● Exposure to new-age economy sectors

The majority of the index comprises disruptive technology sectors like Big Data and AI,
robotics, cloud computing, 5G, internet economy, streaming businesses, semiconductors,
green economy, smart grid, and more. Many companies among these have filed patents
across disruptive technologies. These companies are likely to witness a demand surge,
and therefore, growth in business and revenues.

● Global Exposure
NASDAQ 100 includes companies having a global business or earning major revenue
from countries outside the US. Thus, Indian investors can get truly global exposure and
not just access to US companies. Investing in NASDAQ 100 can help investors invest in
companies, which are not present in India.

● Sector and geographical diversification

Currently, less than 50% of the revenue of companies in NASDAQ 100 is from the US.
Thus, investors can be assured of a geographical diversity. Also, though the focus is
technology, it targets different sunrise sectors like smart grid and big data. Thus, it offers
true diversification for investors.
Performance Of Nasdaq 100 Index

Nasdaq 100 index has done well in recent years when compared to Indian equity markets.
Nasdaq 100 TRI index has delivered a CAGR of 34.6% over the past 5 years, while the NIFTY
50 TRI index has delivered a CAGR of 18.8%. The run-up in technology companies, especially
during the pandemic, has supported the performance of the Nasdaq 100 post-2019.

The pandemic has changed the way people live, work, and shop. People are spending more time
online. They are shopping more online, working remotely online, and spending more time online
for entertainment. This has benefited the FAANG (Facebook, Alphabet, Amazon, Netflix, and
Apple) companies that are among the top constituents of the Nasdaq index.

The following graph shows how the Nasdaq 100 has outperformed the NIFTY 50 over the long
term. If you had invested Rs 100 in Nasdaq 100 index in 2010, the value of the same would be
Rs 1,494 now as compared to Rs 379 invested in the NIFTY 50 index.
 FINDINGS AND SUGGESTIONS

Stock market is the physically existing institutionalized set up where instruments of security
stock market like shares, debentures, bonds, securities are traded. Stock market makes a floor
available to the buyers and sellers of stocks and liquidity comes to the stocks. In this scenario the
importance of investing in the stock market is getting higher. The number of investors and the
number of stock market out of which a majority are online markets , are increasing day to day.
Currently investing in the stock market and having intraday trading is considered as the best way
to earn money. Considering its importance the present study concentrates on ‘Comparative study
of NSE and NASDAQ’. The objectives of the study are to study about the emerging stock
markets in World such as NSE and NASDAQ, to study about the trend of year effect of the NSE
and NASDAQ from 2010 to 2022, to examine the market capitalisation of NSE and NASDAQ
from 2010 to 2023, to examine the trend of risk and return of NSE and NASDAQ from 2010 to
2023 and to study about the type of trading preferred by the investors in stock market.

Findings of the study

• Due to covid-19 pandemic, Nifty lost 1,110 points (12.15%) to 7,583 and NASDAQ lost 966
points (12.3%) to 6,854

• The biggest stock market crashes in World were caused mainly due to covid19 pandemic, 2008
financial crisis.

• NASDAQ has less risk and higher liquidity than Nifty. Nifty suffer lower market impact cost
than NASDAQ

• Despite a population of over 1.2 billon, there exist only 20 million active trading accounts in
India.

• All the stockholders prefer to have online mode of trading. As the advancement of technology
and the pandemic scenario have made stock market into an online node of trading.
 CONCLUSION

Indian stock market now grown into a great material with a lot of qualitative inputs and emphasis
on investor protection and disclosure norms. The market has become automated, transparent and
self-driven. It has integrated with global markets, with Indian companies seeking listing on
foreign capital markets exchange, offshore investments coming to India and foreign funds
floating their schemes and thus bringing expertise in to our markets. India has achieved the
distinction of possessing the largest population of investors next to the U.K., perhaps ours is the
country to have the largest number of listed companies with around several equity fund
management avenues and National Fund managers most of them automated. India now has world
class regulatory system in place. Thus, at the dawn of the new millennium, the equity funds
market has increased the wealth of Indian companies and investors. No doubt strong economic
recovery, upturn in demand, improved market structure, and other measures have also been the
contributory driving forces. Even though Covid pandemic has fall in India stock market, it
recovered with huge hikes along with the economic recovery of the nation.

The aim of the study is to provide an analytical analysis of co-integration between Nifty and
NASDAQ. The results concluded that NSE Nifty and NASDAQ are not co-integrated, which
indicates that a long run equilibrium relationship do not exists between the indices. The Granger
causality test showed a unidirectional causality exists between the indices and the causality runs
from NASDAQ to NSE. Thus, indicating that NASDAQ have the ability to influence NSE.
 BIBLIOGRAPHY

● Nseindia.com
● Nasdaq.com
● Businessinsider.in
● Investing.com
● Investopedia.com
● Moneycontrol.com
● 5paisa.com
● Etmoney.com
● Finance.yahoo.com
● Finance.google.com
● Bloomberg.com
● Cnbc.com
● Groww.in
● Angleone.in