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Valuation of share price in share market.

CA Guru M (B.com, CA, CS) (1552 Points)

30 October 2007

Dear sir/madam,

I'm PCC Student, i wish to know some information regarding following quesetions.

1, How the fluctuation in share price takes place every day,what are the reasons?

2, What is Sens*x? What's the reasons for its flucations ?

3, what are BSE's shares & NSE's shares ?

4,What is this A B C & D group shares?

5,Other information of Share market...

Please send your valuable information to me, i'm eagarly waiting for reply

Thanks in advance.

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8 Replies

(Guest)

plz give me suggestion regarding the reference books for final year c.a (old course) like costing , mafa,accounting ,direct taxes

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(Guest)

plz give me suggestion regarding the reference books for final year c.a (old course) like costing , mafa,accounting ,direct taxes

(Guest)

Fluctuation of price takes place due to continous buying and selling of participants at different rates. There is an order-matching system...people put their orders with quantity and price, and buy/sell. When the buy order matches with the sell order in terms of price, the trade is executed. The reason behind the person paying or nat paying a certain price also varies due to expectations, news, emotions..etc. So everybody acts according to their own will and puts orders to buy/sell base don their expectations, news, understanding, instincts etc. Sens*x is a stock market indexc representing 30 most traded stocks in the Bombay Stock Exchange. The reason for the fluctuation in sens*x is due to the fluctuation in one or more of those 30 stocks. Shares listed on BSE are BSE shares, while shares listed on NSE are NSE shares.

CA Guru M (B.com, CA, CS) (1552 Points)
Replied 30 October 2007

Sir, you said that Sens*x is representing 30 Branded stock,which are those? & Still i need some more information regarding share market.. So will you please let me the right website address?

I'm waiting for your reply.......

Santosh Mehra (Articles Student) (72 Points)
Replied 01 November 2007

as far as i know i will povide u information SENSEX means Sensitive Index & its volatility depends on the perfomance of stocks listed under stock exchanges: BSE-Bombay Stock Exchange NSE: National Stock Exchange Performance of stock depends upon various factors First comes the level of activity of the company and then the market conditions, Economic levels like inflation etc For more information regarding this keep close to equitymaster.com or sharekhan.com or reiff.com or moneycontrol.com The best is trading in virtual money i.e moneybhai.com try this

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Ankit Dangayach (Chartered Accountant) (691 Points)
Replied 03 November 2007

hi

1)Share prices are affected by forces of demand and supply.Demand and supply of stocks depends on various factors like macroeconomic situation,profitability of the company and its growth,Good & reputed management,size of the company,growth in particular sector,Government policies etc

2)Sens*x means sensitivity index.It is index of Bombay stock exchange and is considered as barometer of indian economy.Sens*x moves because of movement in prices of its constituent 30 Shares which forms part of sens*x.It has a base year of 1979 with base value of 100. It is calculated on the basis of free float market capitalization. It is the benchmark against which movement in price of other securities are compared.

3)Majority of trading in stock exchange is done in india in two exchanges i.e BSE & NSE.Both these exchanges have there own indices which capture the movement in price of there constituent securities.For eg Nifty for NSE(Comprises of 50 stocks) and Sens*x for BSE(Comprises of 30 Stocks).Derivative products are also available on these indices. These constituent stocks are carefully selected to give true indication regarding growth.factors considered are Market Cap,Volume,free Float,Industry representation etc.

4)BSE classifies the scripts in different categories like A,B,C,F,Z on the basis of different parameters like market cap,Defaulting companies,daily volume etc.for Eg Z group comapnies are those which fails to comply with conditions of listing agreement or fails to meet investors grivevances

In case you Need more information regarding stock market, Pls contact at ankit5dangayach @ yahoo.co.in

happy Investing

Ankit Dangayach (Chartered Accountant) (691 Points)
Replied 03 November 2007

hi 1)Share prices are affected by forces of demand and supply.Demand and supply of stocks depends on various factors like macroeconomic situation,profitability of the company and its growth,Good & reputed management,size of the company,growth in particular sector,Government policies etc 2)Sens*x means sensitivity index.It is index of Bombay stock exchange and is considered as barometer of indian economy.Sens*x moves because of movement in prices of its constituent 30 Shares which forms part of sens*x.It has a base year of 1979 with base value of 100. It is calculated on the basis of free float market capitalization. It is the benchmark against which movement in price of other securities are compared. 3)Majority of trading in stock exchange is done in india in two exchanges i.e BSE & NSE.Both these exchanges have there own indices which capture the movement in price of there constituent securities.For eg Nifty for NSE(Comprises of 50 stocks) and Sens*x for BSE(Comprises of 30 Stocks).Derivative products are also available on these indices. These constituent stocks are carefully selected to give true indication regarding growth.factors considered are Market Cap,Volume,free Float,Industry representation etc. 4)BSE classifies the scripts in different categories like A,B,C,F,Z on the basis of different parameters like market cap,Defaulting companies,daily volume etc.for Eg Z group comapnies are those which fails to comply with conditions of listing agreement or fails to meet investors grivevances In case you Need more information regarding stock market, Pls contact at ankit5dangayach @ yahoo.co.in happy Investing