of 65
8/2/2019 Copy of Share Market Seminar
1/65
STOCK MARKETHow to make
money without
losing money
8/2/2019 Copy of Share Market Seminar
2/65
AnswerRight Mind
&
Right path
8/2/2019 Copy of Share Market Seminar
3/65
Why should you
investin Stock Market
8/2/2019 Copy of Share Market Seminar
4/65
Beat Inflation
Grow Wealth :
- Money works for you
Equities outgrow other Assets
8/2/2019 Copy of Share Market Seminar
5/65
ADDUCINGS
8/2/2019 Copy of Share Market Seminar
6/65
Amazing Growth of INFOSYSInfosys was founded by Narayana Murthy in 1981.
It came with an IPO in 1993 at the price of Rs. 95.
Investment for 100 Shares would cost Rs. 9500.
Infosys has announced five bonus shares and one stock split since its
domestic listing and each share in 1994 had become 64 shares till 2004.
Again in 2006 it issued 1:1 bonus taking the number to 128 till date.
No. of shares as per our example is 12800 MP in July 2010 is 2900
12800 x 2900 = 3,71,20,000.
Three crores seventy-one lakhs and twenty thousand.
Remember, apart from this, the investor would have got the dividend
amount more than his investment.
8/2/2019 Copy of Share Market Seminar
7/65
8/2/2019 Copy of Share Market Seminar
8/65
Infosys
8/2/2019 Copy of Share Market Seminar
9/65
Wipro =10 k becomes 400+ cr
100 shares of Wipro with a face value of Rs. 100 in 1980 :
In 1981 company declared 1:1 bonus = 200 shares
In 1985 company declared 1:1 bonus = 400 shares
In 1986 company split the share to Rs. 10 = 4,000 shares
In 1987 company declared 1:1 bonus = 8,000 shares
In 1989 company declared 1:1 bonus = 16,000 shares
In 1992 company declared 1:1 bonus = 32,000 shares In 1995 company declared 1:1 bonus = 64,000 shares
In 1997 company declared 1:2 bonus = 192,000 shares
In 1999 company split the share to Rs. 2 = 960,000 shares
In 2004 company declared 1:2 bonus = 2,880,000 shares
In 2005 company declared 1:1 bonus = 5,760,000 shares
In 2010 company Declared 2:3 bonus = 8,640,000 shares
In October 2010 about 86,40,000 x Rs. 463 = Rs. 400+ Cr
Total : 2,451,995,801 SH: 222764 % : 0.3524
8/2/2019 Copy of Share Market Seminar
10/65
8/2/2019 Copy of Share Market Seminar
11/65
Wipro
8/2/2019 Copy of Share Market Seminar
12/65
8/2/2019 Copy of Share Market Seminar
13/65
Unitech
This is another multi-bagger stock which rose
from Rs. 44 in June 2003 to 14849 in June 2006:
exactly 3 years. So, if anyone who had invested
just Rs. 4400 (100 shares), one would havebagged nearly Rs. 14, 80,000. An appreciation of
337 times in just 3 years.
8/2/2019 Copy of Share Market Seminar
14/65
8/2/2019 Copy of Share Market Seminar
15/65
Reliance Industrial Infrastructure Limited
8/2/2019 Copy of Share Market Seminar
16/65
Very Recently
Post Recession(after October 2008 )
8/2/2019 Copy of Share Market Seminar
17/65
8/2/2019 Copy of Share Market Seminar
18/65
8/2/2019 Copy of Share Market Seminar
19/65
Polyplex Corporation Ltd
S ll C M l ib
8/2/2019 Copy of Share Market Seminar
20/65
Small-Cap Multibagger
8/2/2019 Copy of Share Market Seminar
21/65
Points to Ponder
That was the Technology boom and theRealty boom. (Industry)
Polyplex, RIIL and other Small Caps Growthpertaining to a particular Company
Identifying such potentiality is an intrinsicelement of Investing.
Invest in blue chip companies such as Reliance,
SBI, NTPC, TATA group, etc. Now among the EMs, India, as such, is more
likely to be the multi-bagger
8/2/2019 Copy of Share Market Seminar
22/65
DO YOU THINKINDIA IS BECOMING
ECONOMIC SUPER
POWER
8/2/2019 Copy of Share Market Seminar
23/65
8/2/2019 Copy of Share Market Seminar
24/65
1Trillion Loan Story
8/2/2019 Copy of Share Market Seminar
25/65
Super Cycles
1875 ?-1919 ? US
1945 -1980 ? Japan
2000-2030 China and India
Presently World GDP is 62 trillion
By 2030, world GDP will be >300 trillion
Presently, Indias GDP is only 1/60 of world GDP
By 2030 Indias GDP will be 1/10 of world GDP
G D ti P d t (GDP)
8/2/2019 Copy of Share Market Seminar
26/65
Gross Domestic Product (GDP)RATES of Some Countries
Rank Country Rate Year4 China 8.7 2009 est.
12 India 6.5 2009 est.
113 Brazil -0.2 2009 est.
122 World -0.8 2009 est.147 France -2.2 2009 est.
151 United States -2.4 2009 est.
178 European Union -4 2009 est.
188 United Kingdom -4.8 2009 est.
190 Germany -5 2009 est.
193 Japan -5.3 2009 est.
206 Russia -7.9 2009 est.
8/2/2019 Copy of Share Market Seminar
27/65
WHO ARE THE MAJOR
BENEFICIARIES OF OURSTOCK MARKET?
FII INFLOW
8/2/2019 Copy of Share Market Seminar
28/65
FII INFLOW
8/2/2019 Copy of Share Market Seminar
29/65
We contribute to the corporate world as
employees, consumers, suppliers etc and ForeignInstitutional Investors (FIIs) are aware of ourcountrys potential and they are the beneficiaries- they invest and reap the benefits. So, it is time
we make wealth out of our own expenses.
HENCE PARTICIPATION OF EVERY
INDIAN IN STOCK MARKET IS AMUST
8/2/2019 Copy of Share Market Seminar
30/65
Myth about the
other asset classesdispelled
8/2/2019 Copy of Share Market Seminar
31/65
GOLD AND SILVER
ALWAYS HAVE ONLYUPWARD MARKET :
IS IT TRUE?
8/2/2019 Copy of Share Market Seminar
32/65
8/2/2019 Copy of Share Market Seminar
33/65
8/2/2019 Copy of Share Market Seminar
34/65
PETROLEUM PRICES
ALWAYS SOAR IS AMYTH
8/2/2019 Copy of Share Market Seminar
35/65
8/2/2019 Copy of Share Market Seminar
36/65
Real Estate Mumbai
8/2/2019 Copy of Share Market Seminar
37/65
Real Estate - Mumbai
Nifty in the last 10 years
8/2/2019 Copy of Share Market Seminar
38/65
Nifty in the last 10 years
Bull Market
8/2/2019 Copy of Share Market Seminar
39/65
Bull Market
Bear Market
8/2/2019 Copy of Share Market Seminar
40/65
Bear Market
Bear Phase in Bull Market
8/2/2019 Copy of Share Market Seminar
41/65
Nifty Now
8/2/2019 Copy of Share Market Seminar
42/65
y
8/2/2019 Copy of Share Market Seminar
43/65
Why shares are
bought and soldmuch higher than
its face value?
8/2/2019 Copy of Share Market Seminar
44/65
Intrinsic Value / Book Value
Potential (future Earnings)
Demand and supply
Price Determining Factors
8/2/2019 Copy of Share Market Seminar
45/65
Price Determining Factors
Demand and supply rule plays the major part in price determination
of a share
Fundamental :This factor involves analyzing a companies financialstatements and health, its management and competitiveadvantages, and its competitors and markets
Technical : The process of analyzing a security's historical prices inan effort to determine probable future prices.
Emotional : There is a common saying that Fear and Greed
Drives the market. People buy and sell based on their psychologicalInfluences.
d l l i
8/2/2019 Copy of Share Market Seminar
46/65
Fundamental analysis serves to answer
questions, such as:
Is it actually making a profit?
Is the companys revenue growing?
Is it in a strong-enough position to beat out itscompetitors in the future?
Is it able to repay its debts?
Is management trying to "cook the books"?
Technical Analysis
8/2/2019 Copy of Share Market Seminar
47/65
Technical Analysis
If we were all totally logical and could separate
our emotions from our investment decisions,
then, fundamental analysis the determination of
price based on future earnings, would work
magnificently. Then prices would only changewhen quarterly reports or relevant news was
released.
But the Reality is different
8/2/2019 Copy of Share Market Seminar
48/65
Stock market is
gamblingdemystified.
8/2/2019 Copy of Share Market Seminar
49/65
P/E PB
8/2/2019 Copy of Share Market Seminar
50/65
Efficient Market Hypothesis (EMH )
8/2/2019 Copy of Share Market Seminar
51/65
An investment theory that states it is impossible to
"beat the market" -Stock markets incorporate andreflect all relevant information.
According to the EMH, stocks always trade at their
fair value, making it impossible for investors to
either purchase undervalued stocks or sell stocks for
inflated prices.
As such, it should be impossible to outperform the
overall market through expert stock selection ormarket timing,
the only way an investor can possibly obtain higher returns
is by purchasing riskier investments
8/2/2019 Copy of Share Market Seminar
52/65
MARKET IS FOR
EVERYONE
Investing and/or Trading
8/2/2019 Copy of Share Market Seminar
53/65
g g
1. Investor
A) Low ProfileB) High Net worth
2.Trader
A) Day TraderB) Swing TraderC) Position Trader
Exchange Traded Fund (ETF)
8/2/2019 Copy of Share Market Seminar
54/65
Exchange Traded Fund (ETF)
A security that tracks an index, a commodity or a
basket of assets like an index fund, but trades like astock on an exchange. ETFs experience price changes
throughout the day as they are bought and sold.
Most Popularly Traded ETFs
NiftyBees for Nifty
BankBees for BankNifty
GoldBees for Gold
8/2/2019 Copy of Share Market Seminar
55/65
Benchmark Asset Management Company Pvt.
Ltd. (BAMC) is a SEBI registered AssetManagement Company launched in June 2001.
BAMC is the first and only asset management
company in India with a primary focus onindexing and using quantitative techniques in
creating innovative products.
Benchmark is run and co-promoted by
professionals with a long experience in the Indianand International Financial Markets.
http://etfs%20-%20i.flv/8/2/2019 Copy of Share Market Seminar
56/65
Derivatives are for
Hardcore Traders
Derivatives
8/2/2019 Copy of Share Market Seminar
57/65
Derivatives A security whose price is dependent upon or derived
from one or more underlying assets.
The derivative itself is merely a contract between twoor more parties.
Its value is determined by fluctuations in theunderlying asset.
Most derivatives are characterized by high leverage.
Purpose of Derivatives
8/2/2019 Copy of Share Market Seminar
58/65
Purpose of Derivatives
Hedge
Arbitrage (RAR)
Speculation
*RAR : Risk Adjusted Returns
8/2/2019 Copy of Share Market Seminar
59/65
Special focus on Options
as most versatile tradinginstrument
Options are Versatile
8/2/2019 Copy of Share Market Seminar
60/65
pOptions are such an excellent and versatile tool to
make profit in all type of markets.
Bull Market : Shares / Futures /Options
Bear Market : Sell Futures /Buy Puts /Sell Calls.Selling shares is restricted only for intraday trading.
Flat Market / Sideways: So, making profit in suchmarkets is only possible thru Option writing.
8/2/2019 Copy of Share Market Seminar
61/65
Trading as a
Career
1) I don't want to work under anyone. I want to be my own boss.
2) So, I have to be either self-employed (Labour Investment) or a businessman (MoneyInvestment)
8/2/2019 Copy of Share Market Seminar
62/65
3) Being a Self-employed, I will be at my clients' mercy if I am not a specialist or most-sought Doctor, Lawyer, Chartered Accountant, Soft Skills Trainer etc. Let me put thisoption in a parking lot.
4) If I have money to invest I can become a Businessman.5) what are the factors involved in a Business:
a) Type of industry, business. (once chosen switching is difficult)
b) Place of business. (Can't relocate easily)
c) Business viability. (will have to be assessed periodically after the launch)
d) Material and Man management (labor problem inevitable).
e) Competition threat. (it is always there as a threat)
f) Uninterrupted supply of sources.(Law of demand and supply determines)
g) Customer satisfaction. (Very unpredictable)
h) Healthy accounts receivables thereby matching the Accounts payable. (woe)
I) Legal formalities.(God help me please)
j) Out-of-pocket expenses.(same as above)
k) Accounting (though it is simple, many consider it as complicated. So, will I.)
l) Taxation (Am I toiling for someone else)
Am I the Master or Slave?
Is there a business where
) h i d / b i di i h
8/2/2019 Copy of Share Market Seminar
63/65
a) I can choose any industry / any business according to my wish.
b) I can do business from anywhere, even when I am on a holiday trip.
c) I will be able to look into viability before I launch. Also I will be able toswitch and move on when once done with the current one.
d) I need not worry about Man and Material management.
e) Competition is an opportunity rather than a threat.
f) I deal with the product whose supply is not an issue.
g) I don't want to meet my "customers", let alone convincing them, butthey still buy from me.
h) My "customers" pay me immediately.
I) Legal formalities are hassle free.
j) Out-of-pocket expense is irrelevant.
k) Accounting is done by someone promptly and properly.l) Paying tax is a matter of pride.
I am the Real Boss !!!
Yes it is : TRADING IN STOCK MARKET.
8/2/2019 Copy of Share Market Seminar
64/65
Life Cant be this
Simple.There must be some
catch
Being ambitious is good, but notwithout "requisite" effort
8/2/2019 Copy of Share Market Seminar
65/65