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Share Price Index India

A share price index is a figure based on the current market prices of a group of shares listed on a stock exchange. It is important as a leading indicator of market behavior, a benchmark for portfolio performance, and as an underlying for derivatives. An index is compiled using a formula that divides the total current market capitalization by the base market capitalization. Important Indian indices include the BSE Sensex and Nifty 50. Factors that influence share prices include investor sentiment, company announcements, economic data, and world events. Stocks can become overbought or oversold if prices rise or fall sharply over a short period. Circuit limits restrict price movements on a single day.

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Rakesh Malusare
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68 views16 pages

Share Price Index India

A share price index is a figure based on the current market prices of a group of shares listed on a stock exchange. It is important as a leading indicator of market behavior, a benchmark for portfolio performance, and as an underlying for derivatives. An index is compiled using a formula that divides the total current market capitalization by the base market capitalization. Important Indian indices include the BSE Sensex and Nifty 50. Factors that influence share prices include investor sentiment, company announcements, economic data, and world events. Stocks can become overbought or oversold if prices rise or fall sharply over a short period. Circuit limits restrict price movements on a single day.

Uploaded by

Rakesh Malusare
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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What Is Share Price Index

A figure based on the current market price of a certain


group of shares on a stock exchange, such as the Nifty
Stock Exchange 50 Share Index
Important Of Index
 The lead indicator
 As a barometer for market behavior
 as a benchmark for portfolio performance
 as an underlying for derivatives like index futures and option
How To Compile The Index
 Formula:

Index = Current Market Cap * Base Index Value


Base Market Cap

Assuming Base Market Value Is : 1000


How To Compile The Index
Company Current Market Cap Base Market Cap ( in
(In Crores) Crores)
Reliance Industrias 105000 100000
ONGC 84000 80000
TCS 76000 80000
ITC 55000 60000
Coal India 54000 50000
Total 374000 370000
How To Compile The Index
 Index = 374000 * 1000
370000
= 1010.81
Important Indices
BSE Indices
 Sensex
 BSE 100
 BSE 200
 BSE 500
 BSE Auto Index
 BSE Bankex
 BSE Consumer Durable
 BSE Healthcare
 BSE Metal
 BSE Midcap
 BSE Oil & Gas
 BSE Small cap Index
 BSE Infotech Index
Important Indices
NSE Indices
 S & P CNX Nifty
 Bank Nifty
 CNX IT
 CNX Midcap
 CNX Nifty Junior
 S & P CNX 500
 S & P CNX Defty

CNX = Crisil NSE Exchange / Indices


Live Trading Terminal
Share Price Movement
Factors Influencing Share Price
• Investor Sentiment
• Company Announcement
• Analysts Earnings Estimates
• Economic Data
• Interest And Inflation
• Exchange Rates
• World Events
• Hype
Factors Influencing Share Price
 Government Policies
 Company Results
 Orders
 Market Rumors
 Political Instability
Risk Involved In Share Price
Movement/Capital Market
 Market Risk
 Interest Rates Risk
 Currency Risk
 Economical Risk
 Political Risk
 World Event Risk
Over Bought / Over Sold
 An asset that has experienced sharp
upward movements over a very short
period of time is often deemed to be
overbought
 An asset that has experienced sharp
Downward movements over a very short
period of time is often deemed to be
oversold
Circuit Levels BSE/NSE
BSE
 Upper Circuit : 20%
 Lower Circuit : 10 %

NSE ( For Both Upper And Lower Circuit)


 10% Change Before 14.00 : 1 Hour
 10 % Change between 14.00 to 14.30 : 30
Mins
 10% Change After 14.30 : No Circuit
Circuit Levels BSE/NSE
 20% Change Before 13.00 : 2 Hour
 20% Change Between 13.00 to 14.00 : 1
Hour
 20% Change After 14.00 : Trading
Suspended For A Day
 30 % : Trading Suspended For A day
No Circuit Stocks
There are no circuits on the 30 stocks
included in the Sensex or the 50 included in
the Nifty because these stocks are traded
in the future and options market as well.

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