presentation of indian stock market

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The BSE and NSE

Trading and settlement, market indexes, market regulation.

• Investing in India's Markets

The Bottom Line

• International Markets

Indian Stock Market: Exchanges and Indexes

With its massive population and bustling economy, India is an engine of growth. On Jan. 22, 2024, its stock market capitalization surpassed Hong Kong’s for the first time. According to data compiled by Bloomberg, the value of shares listed on Indian exchanges reached $4.33 trillion, compared to $4.29 trillion for Hong Kong.

Key Takeaways

• India has two primary stock markets, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
• The BSE is India's oldest stock exchange.
• India's exchanges are regulated by the Securities Exchange Board of India (SEBI).
• The two prominent Indian market indexes are Sensex and Nifty.

Most of the trading in the Indian stock market takes place on its two stock exchanges: the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The BSE was established in 1875. The NSE was founded in 1992 and started trading in 1994. Both exchanges follow the same trading mechanism, trading hours, and settlement process.

As of Jan. 30, 2024, the BSE had 5,315 listed firms, whereas the rival NSE had 2,266 as of Dec. 31, 2023. Almost all the significant firms of India are listed on both exchanges. The BSE is the older stock market, and the NSE is the largest in volume.

Trading on both exchanges is through an open electronic limit order book where order matching is done by the trading computer. There are no market makers , and the entire process is order-driven by investors matched with the best limit orders. Buyers and sellers remain anonymous.

An order-driven market brings more transparency by displaying all buy and sell orders in the trading system . Institutional investors can use the direct market access (DMA) option, using trading terminals provided by brokers for placing orders directly into the stock market trading system.

Equity spot markets follow a T+1 rolling settlement , with any trade on Monday getting settled by Tuesday. All trading is conducted between 9:15 a.m. and 3:30 p.m., Indian Standard Time (+ 5.5 hours GMT), Monday through Friday. Delivery of shares must be made in dematerialized form. Each exchange has its own clearing house, which assumes all settlement risk by serving as a central counterparty.

The two prominent Indian market indexes are Sensex and Nifty. Sensex is the oldest market index for equities; it includes shares of 30 firms listed on the BSE. It was created in 1986 and provides time series data from 1979 as the base year.

The Standard and Poor's CNX Nifty includes 50 shares listed on the NSE. It was created in 1996.

The development, regulation, and supervision of India's stock market rests with the Securities and Exchange Board of India (SEBI), formed in 1992 as an independent authority. Since then, SEBI has consistently tried to lay down market rules in line with the best market practices. It enjoys vast powers of imposing penalties on market participants in case of a breach.

Investing in India's Markets

India permitted outside investments in the 1990s. Foreign investments are classified into two categories: foreign direct investment (FDI) and foreign portfolio investment (FPI). All investments in which an investor takes part in the day-to-day management and operations of the company are treated as FDI, whereas investments in shares without any control over management and operations are treated as FPI.

To make portfolio investments in India, one must be a foreign institutional investor (FII) or one of the sub-accounts of one of the registered FIIs. Both registrations are granted by the market regulator, SEBI. Foreign institutional investors mainly consist of mutual funds , pension funds, endowments, sovereign wealth funds, insurance companies, banks, and asset management companies. FIIs can also invest in unlisted securities outside stock exchanges, subject to the approval of the price by the Reserve Bank of India .

India has the fifth-largest economy in the world by GDP, with a 2023 GDP of $3.7 trillion.

Restrictions and Investment Ceilings

The government of India prescribes the FDI limit, and different ceilings have been prescribed for different sectors. The maximum limit for portfolio investment in a particular listed firm is decided by the FDI limit prescribed for the sector to which the firm belongs. However, there are two additional restrictions on portfolio investment.

According to SEBI, an FII can invest up to 10% of the equity of any one company, subject to the 24% limit on overall investments. The 24% limit may be raised to 30% for individual companies that have received shareholder approval to do so. FIIs are allowed to invest 100% of their portfolios in debt securities.

Investments for Foreign Entities

Foreign entities and individuals can gain exposure to Indian stocks through institutional investors. Investments can be made through some of the offshore instruments, like participatory notes (PNs), depositary receipts, such as American depositary receipts (ADRs) and global depositary receipts (GDRs), exchange-traded funds (ETFs), and exchange-traded notes (ETNs).

Participatory notes representing underlying Indian stocks can be issued offshore by FIIs, only to regulated entities, but small investors can invest in American depositary receipts representing the underlying stocks of some of the well-known Indian firms, listed on the New York Stock Exchange and Nasdaq. ADRs are denominated in dollars and subject to the regulations of the U.S. Securities and Exchange Commission (SEC).

Retail investors can invest in ETFs and ETNs , based on Indian stocks. India-focused ETFs mostly make investments in indexes made up of Indian stocks. Most of the equities included in the index are listed on the NYSE and Nasdaq. Two ETFs based on Indian stocks include the iShares MSCI India ETF ( INDA ) and the Wisdom-Tree India Earnings Fund ( EPI ).

What Is the Main Stock Market in India?

The main stock market in India is the Bombay Stock Exchange (BSE) which has 5,315 listed firms.

What Is the Largest Company on the Indian Stock Market?

The largest company on the Bombay Stock Exchange (BSE) is Reliance Industries with a market cap of over $229 billion as of Jan. 30, 2024.

Can Americans Invest in the Indian Stock Market?

Yes, Americans can invest in the Indian stock market. There are a few ways of doing so, such as investing in exchange-traded funds (ETFs) or purchasing American depository receipts (ADRs) of the company.

Most of the trading in the Indian stock market takes place in the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). As of 2024, India ranked as the fourth largest market in the world. The two dominant Indian market indexes are Sensex and Nifty.

Bloomberg. " India Tops Hong Kong as World’s Fourth-Largest Stock Market ."

BSE. " History and Milestones ."

NSE. " History & Milestones ."

BSE. " All India Market Capitalization ."

NSE. " All Companies Based on Market Capitalisation ."

NSE. " Trading System ."

NSE. " Settlement Cycle ."

BSE. " Compulsory Rolling Settlement ."

BSE. " Session Timings ."

NSE. " Exchange Communications. Market Timings ."

Pib.gov.in. " BSE Sensex Is Now 25 ."

NSE. " Nifty50 ."

Securities and Exchange Board of India. " About SEBI ."

International Monetary Fund. " UNCTAD Press Release: FDI Flows to India Expanded in the 1990s ."

Securities and Exchange Board of India. " Foreign Institutional Investment ."

World Population Review. " Countries By GDP ."

Companiesmarketcap.com. " Reliance Industries ."

BSE. " Top 100 Companies by Market Capitalization ."

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Stock market in India - statistics & facts

Impact of liberalization on the stock market, navigating ascent and turbulence: india’s stock market story, key insights.

Detailed statistics

Number of listed companies largest stock exchange operators globally 2023

Age of leading exchanges worldwide 2024

Leading 12 stock exchanges worldwide 2023, by number of IPOs

Editor’s Picks Current statistics on this topic

Market capitalization of listed domestic companies India 2005-2022

Investment Funds

Preferred type of stock market investment in India 2023

Further recommended statistics

Global overview.

• Premium Statistic Largest stock exchange operators worldwide 2024, by market capitalization
• Premium Statistic Countries with largest stock markets globally 2023
• Premium Statistic Leading stock exchanges APAC 2024, by domestic market capitalization
• Premium Statistic Leading 12 stock exchanges worldwide 2023, by IPO proceeds

Largest stock exchange operators worldwide 2024, by market capitalization

Largest stock exchange operators worldwide as of March 2024, by market capitalization of listed companies (in trillion U.S. dollars)

Countries with largest stock markets globally 2023

Distribution of countries with largest stock markets worldwide as of January 2023, by share of total world equity market value

Leading stock exchanges APAC 2024, by domestic market capitalization

Leading stock exchanges in the Asia Pacific region as of March 2024, by domestic market capitalization (in billion U.S. dollars)

Leading 12 stock exchanges worldwide 2023, by IPO proceeds

Leading 12 stock exchanges in terms of proceeds of IPO deals worldwide as of 2023 (in billion U.S. dollars)

Key Indicators

• Premium Statistic Market capitalization to GDP ratio in India FY 2022-2023, by stock exchange
• Premium Statistic Total turnover to GDP ratio in India FY 2023
• Premium Statistic Number of companies listed in NSE and BSE across India FY 2008-2022
• Premium Statistic Number of unique investors on NSE in India 2018-2023

Market capitalization to GDP ratio in India FY 2022-2023, by stock exchange

Market capitalization to GDP ratio in India in the financial year 2022 and 2023, by stock exchange

Total turnover to GDP ratio in India FY 2023

Total turnover to GDP ratio in India in the financial year 2023

Number of companies listed in NSE and BSE across India FY 2008-2022

Number of companies listed in NSE and BSE across India from financial year 2008 to 2022

Number of unique investors on NSE in India 2018-2023

Number of unique investors on National Stock Exchange (NSE) of India from 2018 to 2023 (in millions)

Instruments and ownership

• Premium Statistic Resource mobilization through public and rights issues in India FY 2013-2023
• Premium Statistic Share of equity derivative segment in India FY 2023, by product
• Premium Statistic Share of ownership in companies listed on NSE in India 2023, by category
• Premium Statistic Foreign portfolio investment by instrument in India FY 2023, by instrument

Resource mobilization through public and rights issues in India FY 2013-2023

Resource mobilization through public and rights issues in India from financial year 2013 to 2023 (in billion Indian rupees)

Share of equity derivative segment in India FY 2023, by product

Share of equity derivative segment in India in the financial year 2023, by product

Share of ownership in companies listed on NSE in India 2023, by category

Share of ownership in companies listed on National Stock Exchange (NSE) in India as of December 2023, by category

Foreign portfolio investment by instrument in India FY 2023, by instrument

Foreign portfolio investment by instrument in India as of financial year 2023, by instrument (in billion Indian rupees)

Market Index

• Premium Statistic Annual variation in major indices in India FY 2023
• Premium Statistic Dividend yield of broad market indices listed on NSE in India 2024
• Premium Statistic Annual performance of equity indices listed on BSE in India 2024
• Premium Statistic Annual nifty 50 returns in India 2014-2023
• Premium Statistic Monthly performance of the S&P BSE Sensex Index in India 2017-2024

Annual variation in major indices in India FY 2023

Annual variation in major indices in India in the financial year 2023

Dividend yield of broad market indices listed on NSE in India 2024

Dividend yield of broad market indices listed on National Stock Exchange (NSE) of India as of April 2024

Annual performance of equity indices listed on BSE in India 2024

Annual performance of equity indices listed on Bombay Stock Exchange (BSE) in India as of March 2024

Annual nifty 50 returns in India 2014-2023

Annual nifty 50 returns in India from 2014 to 2023

Monthly performance of the S&P BSE Sensex Index in India 2017-2024

Monthly value of the S&P BSE Sensex Index in India from January 2017 to June 2024

Collective investment schemes

• Premium Statistic Trading volume of ETFs in India FY 2017-2024
• Premium Statistic Number of ETFs in India FY 2017-2024, by type
• Premium Statistic Deployment of mutual funds in India FY 2023, by asset class
• Premium Statistic AUM of equity mutual funds in India 2024, by type
• Premium Statistic AUM of debt mutual funds in India 2024, by type

Trading volume of ETFs in India FY 2017-2024

Trading volume of Exchange Traded Funds (ETFs) in India from financial year 2017 to 2024 (in billion Indian rupees)

Number of ETFs in India FY 2017-2024, by type

Number of Exchange Traded Funds (ETFs) in India from financial year 2017 to 2024, by type

Deployment of mutual funds in India FY 2023, by asset class

Deployment of mutual funds in India in financial year 2023, by asset class (in trillion Indian rupees)

AUM of equity mutual funds in India 2024, by type

Asset under management (AUM) of equity mutual funds in India as of January 31, 2024, by type (in trillion Indian rupees)

AUM of debt mutual funds in India 2024, by type

Asset under management (AUM) of debt mutual funds in India as of January 2024, by type (in billion Indian rupees)

Performance by sector

• Premium Statistic Dividend yield of sectoral market indices listed on NSE in India 2024
• Premium Statistic Leading oil exploration companies in India 2024, by market capitalization
• Premium Statistic Leading IT services and consulting companies in India 2023, by market capitalization
• Premium Statistic Leading FMCG companies in India 2024, by market capitalization

Dividend yield of sectoral market indices listed on NSE in India 2024

Dividend yield of sectoral market indices listed on National Stock Exchange (NSE) of India as of April 2024

Leading oil exploration companies in India 2024, by market capitalization

Leading oil exploration and production companies in India as of March 2024, based on market capitalization (in billion Indian rupees)

Leading IT services and consulting companies in India 2023, by market capitalization

Leading IT services and consulting companies in India as of November 2023, based on market capitalization (in billion Indian rupees)

Leading FMCG companies in India 2024, by market capitalization

Leading FMCG companies in India as of January 2024, by market capitalization (in billion Indian rupees)

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Indian Stock Market: An Overview

Mar 29, 2019

910 likes | 1.2k Views

Indian Stock Market: An Overview. Stock Market Primary Market Secondary Market. Primary Market. IPO vs Seasoned Issues Pricing of issues Fixed pricing Book building Public offer vs Private placement Demat issues. Pricing of issues.

Share Presentation

• fixed price
• medium size firms
• national securities depository limited
• nationwide trading system
• regulatory body
• simple scenario

Presentation Transcript

Indian Stock Market: An Overview www.pptmart.com

Stock Market • Primary Market Secondary Market www.pptmart.com

Primary Market • IPO vs Seasoned Issues • Pricing of issues • Fixed pricing • Book building • Public offer vs Private placement • Demat issues www.pptmart.com

Pricing of issues • Companies eligible to make public issue can freely price their equity shares or any security. • Fixed Price • Book Building www.pptmart.com

Fixed Price • In the fixed-price issue method, the issuer fixes the issue price well before the actual issue. For this very reason, it is cautious and conservative in pricing the issue so that the issue is fully subscribed. Underwriters also do not like the issue to devolve on them and hence favour conservative pricing of the issue. For these practical reasons, the issue price in the case of traditional fixed price method generally errs on the lower side and, therefore, in the investor’s favour. www.pptmart.com

Book building • Book-building is a process of price discovery used in public offers. The issuer sets a floor price and a band within which the investor is allowed to bid for shares. • The upper price of the band can be a maximum of 1.2 times the floor price. • The investor had to bid for a quantity of shares he wished to subscribe to within this band. www.pptmart.com

Book building • Bids to remain open for at least 5 days • Only electronic bidding is permitted • Bidding demand is displayed at the end of every day. • The lead manager analyses the demand generated and determines the issue price or cut-off price in consultation with the issuer. www.pptmart.com

Cut-off price • The cut-off price is the price discovered by the market. It is the price at which the shares are issued to the investors. • Investors bidding at a price below the cut-off price are ignored. www.pptmart.com

Let’s say a company wants to issue 10,00,000 shares. The floor price for one share of face value, Rs10, is Rs48 and the band is between Rs48 and Rs55. • At Rs55, on the basis of bids received, the investors are ready to buy 2,00,000 shares. So the cut-off price can not be set at Rs55 as only 2 lacs shares will be sold. www.pptmart.com

So as a next step, the price is lowered to Rs54. At Rs54, investors are ready to buy 4 lacs shares. So if the cut-off price is set at Rs54, 6 lacs shares will be sold. This still leaves 4 lacs shares to be sold. www.pptmart.com

The price is now lowered to Rs53. At Rs53, investors are ready to buy 4 lacs shares. Now if the cut-off price is set at Rs53, all ten lacs shares will be sold. • Investors who had applied for shares at Rs55 and Rs54 will also be issued shares at Rs53. www.pptmart.com

Fixed Price vs. Book Building www.pptmart.com

Book Building • Objective is efficient price discovery. • Asymmetric information between promoter and investors. • Investors always remain in dark. www.pptmart.com

Private placement • It involves issues of securities to a limited number of subscribers, such as banks, FIs, MFs and high net worth individual. • It is arranged through a merchant banker, an agent of issuers, who brings together the issuers and investor(s). • Securities offered are exempt from public disclosers regulations and registration requirements of the regulatory body. • This market is preferred by small and medium size firms, particularly new entrants who do not have track record of performance. www.pptmart.com

Private Placement vs Public Issues www.pptmart.com

DEMATERIALISATION OF SHARES: • Trading in the shares of the Company is compulsory in dematerialized form for all investors. • The Company has, therefore, enlisted its shares with both the depositories, viz, National Securities Depository Limited (NSDL) and Central Depository Services India Limited (CDSL). www.pptmart.com

What is Dematerialisation? • Dematerialisation is a process by which the physical share certificates of an investor are taken back by the Company and an equivalent number of securities are credited in electronic form at the request of the investor. • An investor will have to first open an account with a Depository Participant so that the dematerialised holdings can be credited into that account. • This is very similar to opening a Bank Account. www.pptmart.com

What is a Depository? • A Depository (NSDL & CDSL) is an organisation like a Central Bank where the securities of a shareholder are held in the electronic form at the request of the shareholder through the medium of a Depository Participant. www.pptmart.com

Who is a Depository Participant? • A Depository Participant (DP) is your representative (agent) in the depository system providing the link between the Company and you through the Depository. • While the Depository can be compared to aBank, DP is like a branch of your bank with whom you can have an account. • According to SEBI guidelines, Financial Institutions like banks, stockbrokers etc. can become participants in the depository. www.pptmart.com

How does the Depository System operate? • The Depository System functions very much like the banking system. • A bank holds funds in accounts whereas a Depository holds securities in accounts for its clients. • A Bank transfers funds between accounts whereas a Depository transfers securities between accounts. • In both systems, the transfer of funds or securities happens without the actual handling of funds or securities. www.pptmart.com

Secondary Market • Trading • Clearing &Settlement www.pptmart.com

Trading • Cash Trading • Spot Trading • Forward, future (derivative trading) www.pptmart.com

TRADING • The NSE trading system called 'National Exchange for Automated Trading' (NEAT) is a fully automated screen based trading system. • It is on line and nationwide trading system. • It adopts the principle of an order driven market. www.pptmart.com

Trading Mechanism • In this system a member can punch into the computer quantities of securities and prices at which he likes to transact. • The transaction is executed as soon as it finds a matching sale or buy order from a counter party. www.pptmart.com

Trading Mechanism • A single consolidated order book for each stock displays, on a real time basis, buy and sell orders originating from all over the country. • The book stores only limit orders, which are orders to buy or sell shares at a stated quantity and stated price. • The limit orders are executed only if the price quantity conditions match. www.pptmart.com

The Limit order book for Titan on the NSE (on 12 April, 2005, at 11.00 A.M.) www.pptmart.com

One can buy a share by paying Rs237.7 and sell a share at Rs 237.25. • The difference is the bid-ask spread. • There is one potential complication to this simple scenario. • The prices of Rs237.25 and Rs237.7 actually represent commitments to trade up to a specified number of shares. • If somebody wants to buy 150 shares, what will happen? www.pptmart.com

Limit Orders • Investors may also place limit orders, whereby they specify prices at which they are willing to buy or sell a security. www.pptmart.com

Limit Orders www.pptmart.com

Limit-buy Order and Limit-Sale order • Limit-buy Order • If the stock falls below the limit on a limit-buy order then the trade is to be executed. • See the price list of Titan: Somebody has placed a buy order for 25 shares of Titan at Rs237.2 per share. • If price falls to Rs237.2 (from its current level of Rs237.25), then this buy order will be executed. • Limit-Sale order? www.pptmart.com

What happens if a limit order is placed between the quoted bid and ask prices? • Suppose you have instructed your broker to buy Titan at a price of Rs237.4 or better. www.pptmart.com

Trading Mechanism • The trading system provides tremendous flexibility to the issuers in terms of kinds of orders that can be placed on the system. • Several time related (Good-till-Cancelled, Good-till-Day, Immediate-or-Cancel), and • Price-related (buy/sell limit and stop-loss orders) conditions can be easily built into an order. www.pptmart.com

Stop-loss orders • It is an order placed with a broker to sell once the stock reaches a certain price. • A stop-loss is designed to limit an investor's loss on a security position. • Setting a stop-loss order for 10% below the price at which you bought the stock will limit your loss to 10%. • For example, let's say you just purchased ACC at Rs50 per share. Right after buying the stock you enter a stop-loss order for Rs45. This means that if the stock falls below Rs45, your shares will then be sold at the prevailing market price.  www.pptmart.com

Market Timings • Trading on the equities segment takes place on all days of the week (except Saturdays and Sundays and holidays declared by the Exchange in advance). The market timings of the equities segment are:Normal Market Open : 09:55 hoursNormal Market Close : 15:30 hours www.pptmart.com

Clearing and Settlement Process at NSE • NSE • 1 • DEPOSITORIES 8 NSCCL 9 CLEARING BANK • 6 7 • 10 5 2 3 4 11 • CUSTODIAN / DP www.pptmart.com

Clearing and settlement Process • 1. Trade details from Exchange to NSCCL • 2. NSCCL notifies the consummated trade details to custodians who • affirm back. Based on the affirmation, NSCCL determines • obligations. • 3. Download of obligation and pay-in advice of funds/ securities. • 4. Instructions to clearing banks to make funds available by pay-in- • time. • 5. Instructions to depositories to make securities available by pay-in- • time. www.pptmart.com

Clearing and settlement Process • 6. pay-in of securities (NSCCL advises depository to debit pool • account of custodians and credit its account and depository does • it). • 7. pay-in of funds (NSCCL advises Clearing Banks to debit account • of custodians and credit its account and clearing bank does it). • 8. Pay-out of securities (NSCCL advises depository to credit pool • account of custodians and debit its account and depository does • it). • 9. Pay-out of funds (NSCCL advises Clearing Banks to credit • account of custodians and debit its account and Clearing Banks • does it). • 10. Depository informs custodians • 11. Clearing Banks inform custodians www.pptmart.com

Clearing and settlement Process • Custodians ( for A who is buyer and for B who is seller) • Clearing bank records the following entries: • (for 7) Custodian ( for A) A/C ……Dr • To NSCCL A/C • (for 9) NSCCL A/C ……..Dr • To Custodian (for B) A/C • Depositories record the following entries (shares): • (for 6) Custodian ( for B) A/C ……Dr • To NSCCL A/C • (for 8) NSCCL A/C ……..Dr • To Custodian (for A) A/C www.pptmart.com

Settlement CycleRolling Settlement • At NSE and BSE, trades in rolling settlement are settled on a T+2 basis i.e. on the 2nd working day. • For arriving at the settlement day all intervening holidays, which include bank holidays, NSE holidays, Saturdays and Sundays are excluded. • Typically trades taking place on Monday are settled on Wednesday, Tuesday's trades settled on Thursday and so on. www.pptmart.com

A tabular representation of the settlement cycle for rolling settlement www.pptmart.com

Index-based Market-wide Circuit Breakers(w.e. from July 2001) • The index-based market-wide circuit breaker system applies at 3 stages of the index movement, either way viz. at 10%, 15% and 20%. • These circuit breakers when triggered, bring about a coordinated trading halt in all equity and equity derivative markets nationwide. • The market-wide circuit breakers are triggered by movement of either the BSE Sensex or the NSE S&P CNX Nifty, whichever is breached earlier. www.pptmart.com

Duration of trading halt (in minutes) www.pptmart.com

Risk ManagementMargin Money • Categorisation of stocks for imposition of margins • The Stocks which have traded atleast 80% of the days for the previous six months shall constitute the Group I and Group II. • Out of the scrips identified above, the scrips having mean impact cost of less than or equal to 1% shall be categorized under Group I and the scrips where the impact cost is more than 1, shall be categorized under Group II. • The remaining stocks shall be classified into Group III. www.pptmart.com

The impact cost shall be calculated on the 15th of each month on a rolling basis considering the order book snapshots of the previous six months. On the basis of the impact cost so calculated, the scrips shall move from one group to another group from the 1st of the next month. • For securities listed for < 6 months, the trading frequency and the impact cost shall be computed using the entire trading history of the security. www.pptmart.com

What is impact cost? • What is impact cost? It is the cost of executing a transaction on the stock exchanges. • Suppose you want to buy 150 shares of Titan. • You would be able to buy the first 129 shares at a price of Rs237.7 per share. However, to buy the remaining 21 shares, you have to pay Rs237.9 per share. The higher the number of shares that you want to buy will have an impact on the price of the stock. • This is measured by what is known as the impact cost of the trade. www.pptmart.com

The average buy price for 150 shares= • (Rs237.7x129 + Rs237.9x21)/150 = Rs237.728 • The average of the best bid and ask price is given by Rs 237.475. • You should ideally expect to buy or sell shares of Titan at this price. • The impact cost of the order is therefore given by: • Impact cost = (237.728 – 237.475)/237.475 • = 0.106% www.pptmart.com

What does impact cost signify? • It means you incurred a cost of 0.106% to buy 150 shares because of the liquidity conditions in that stock. The more liquid a stock is the lower its impact cost. www.pptmart.com

Value at Risk Margin www.pptmart.com

Index VaR • The index VaR would be the higher of the daily Index VaR based on S&P CNX NIFTY or BSE SENSEX. The index VaR would be subject to a minimum of 5%. www.pptmart.com

Computation VaR • Calculate the daily logarithmic return of share • Ri = In (Pi / Pi-1) • Compute the initial volatility by calculating the standard deviation of returns for the one year period using the formula • SD = σ0 = [ 1/n {Ri – E(Ri)}2 ] www.pptmart.com

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• Preferences

Indian Stock Market: An Overview - PowerPoint PPT Presentation

Indian Stock Market: An Overview

Www.pptmart.com indian stock market: an overview ... – powerpoint ppt presentation.

• Stock Market
• Primary Market Secondary Market
• IPO vs Seasoned Issues
• Pricing of issues
• Fixed pricing
• Book building
• Public offer vs Private placement
• Demat issues
• Companies eligible to make public issue can freely price their equity shares or any security.
• Fixed Price
• Book Building
• In the fixed-price issue method, the issuer fixes the issue price well before the actual issue. For this very reason, it is cautious and conservative in pricing the issue so that the issue is fully subscribed. Underwriters also do not like the issue to devolve on them and hence favour conservative pricing of the issue. For these practical reasons, the issue price in the case of traditional fixed price method generally errs on the lower side and, therefore, in the investors favour.
• Book-building is a process of price discovery used in public offers. The issuer sets a floor price and a band within which the investor is allowed to bid for shares.
• The upper price of the band can be a maximum of 1.2 times the floor price.
• The investor had to bid for a quantity of shares he wished to subscribe to within this band.
• Bids to remain open for at least 5 days
• Only electronic bidding is permitted
• Bidding demand is displayed at the end of every day.
• The lead manager analyses the demand generated and determines the issue price or cut-off price in consultation with the issuer.
• The cut-off price is the price discovered by the market. It is the price at which the shares are issued to the investors.
• Investors bidding at a price below the cut-off price are ignored.
• Lets say a company wants to issue 10,00,000 shares. The floor price for one share of face value, Rs10, is Rs48 and the band is between Rs48 and Rs55.
• At Rs55, on the basis of bids received, the investors are ready to buy 2,00,000 shares. So the cut-off price can not be set at Rs55 as only 2 lacs shares will be sold.
• So as a next step, the price is lowered to Rs54. At Rs54, investors are ready to buy 4 lacs shares. So if the cut-off price is set at Rs54, 6 lacs shares will be sold. This still leaves 4 lacs shares to be sold.
• The price is now lowered to Rs53. At Rs53, investors are ready to buy 4 lacs shares. Now if the cut-off price is set at Rs53, all ten lacs shares will be sold.
• Investors who had applied for shares at Rs55 and Rs54 will also be issued shares at Rs53.
• Objective is efficient price discovery.
• Asymmetric information between promoter and investors.
• Investors always remain in dark.
• It involves issues of securities to a limited number of subscribers, such as banks, FIs, MFs and high net worth individual.
• It is arranged through a merchant banker, an agent of issuers, who brings together the issuers and investor(s).
• Securities offered are exempt from public disclosers regulations and registration requirements of the regulatory body.
• This market is preferred by small and medium size firms, particularly new entrants who do not have track record of performance.
• Trading in the shares of the Company is compulsory in dematerialized form for all investors.
• The Company has, therefore, enlisted its shares with both the depositories, viz, National Securities Depository Limited (NSDL) and Central Depository Services India Limited (CDSL).
• Dematerialisation is a process by which the physical share certificates of an investor are taken back by the Company and an equivalent number of securities are credited in electronic form at the request of the investor.
• An investor will have to first open an account with a Depository Participant so that the dematerialised holdings can be credited into that account.
• This is very similar to opening a Bank Account.
• A Depository (NSDL CDSL) is an organisation like a Central Bank where the securities of a shareholder are held in the electronic form at the request of the shareholder through the medium of a Depository Participant.
• A Depository Participant (DP) is your representative (agent) in the depository system providing the link between the Company and you through the Depository.
• While the Depository can be compared to a Bank, DP is like a branch of your bank with whom you can have an account.
• According to SEBI guidelines, Financial Institutions like banks, stockbrokers etc. can become participants in the depository.
• The Depository System functions very much like the banking system.
• A bank holds funds in accounts whereas a Depository holds securities in accounts for its clients.
• A Bank transfers funds between accounts whereas a Depository transfers securities between accounts.
• In both systems, the transfer of funds or securities happens without the actual handling of funds or securities.
• Clearing Settlement
• Cash Trading
• Spot Trading
• Forward, future (derivative trading)
• The NSE trading system called 'National Exchange for Automated Trading' (NEAT) is a fully automated screen based trading system.
• It is on line and nationwide trading system.
• It adopts the principle of an order driven market.
• In this system a member can punch into the computer quantities of securities and prices at which he likes to transact.
• The transaction is executed as soon as it finds a matching sale or buy order from a counter party.
• A single consolidated order book for each stock displays, on a real time basis, buy and sell orders originating from all over the country.
• The book stores only limit orders, which are orders to buy or sell shares at a stated quantity and stated price.
• The limit orders are executed only if the price quantity conditions match.
• One can buy a share by paying Rs237.7 and sell a share at Rs 237.25.
• The difference is the bid-ask spread.
• There is one potential complication to this simple scenario.
• The prices of Rs237.25 and Rs237.7 actually represent commitments to trade up to a specified number of shares.
• If somebody wants to buy 150 shares, what will happen?
• Investors may also place limit orders, whereby they specify prices at which they are willing to buy or sell a security.
• Limit-buy Order and Limit-Sale order
• Limit-buy Order
• If the stock falls below the limit on a limit-buy order then the trade is to be executed.
• See the price list of Titan Somebody has placed a buy order for 25 shares of Titan at Rs237.2 per share.
• If price falls to Rs237.2 (from its current level of Rs237.25), then this buy order will be executed.
• Limit-Sale order?
• What happens if a limit order is placed between the quoted bid and ask prices?
• Suppose you have instructed your broker to buy Titan at a price of Rs237.4 or better.
• The trading system provides tremendous flexibility to the issuers in terms of kinds of orders that can be placed on the system.
• Several time related (Good-till-Cancelled, Good-till-Day, Immediate-or-Cancel), and
• Price-related (buy/sell limit and stop-loss orders) conditions can be easily built into an order.
• It is an order placed with a broker to sell once the stock reaches a certain price.
• A stop-loss is designed to limit an investor's loss on a security position.
• Setting a stop-loss order for 10 below the price at which you bought the stock will limit your loss to 10.
• For example, let's say you just purchased ACC at Rs50 per share. Right after buying the stock you enter a stop-loss order for Rs45. This means that if the stock falls below Rs45, your shares will then be sold at the prevailing market price. 
• Trading on the equities segment takes place on all days of the week (except Saturdays and Sundays and holidays declared by the Exchange in advance). The market timings of the equities segment areNormal Market Open 0955 hoursNormal Market Close 1530 hours
• DEPOSITORIES 8 NSCCL 9 CLEARING BANK
• 10 5 2 3 4 11
• CUSTODIAN / DP
• 1. Trade details from Exchange to NSCCL
• 2. NSCCL notifies the consummated trade details to custodians who
• affirm back. Based on the affirmation, NSCCL determines
• obligations.
• 3. Download of obligation and pay-in advice of funds/ securities.
• 4. Instructions to clearing banks to make funds available by pay-in-
• 5. Instructions to depositories to make securities available by pay-in-
• 6. pay-in of securities (NSCCL advises depository to debit pool
• account of custodians and credit its account and depository does
• 7. pay-in of funds (NSCCL advises Clearing Banks to debit account
• of custodians and credit its account and clearing bank does it).
• 8. Pay-out of securities (NSCCL advises depository to credit pool
• account of custodians and debit its account and depository does
• 9. Pay-out of funds (NSCCL advises Clearing Banks to credit
• account of custodians and debit its account and Clearing Banks
• 10. Depository informs custodians
• 11. Clearing Banks inform custodians
• Custodians ( for A who is buyer and for B who is seller)
• Clearing bank records the following entries
• (for 7) Custodian ( for A) A/C Dr
• To NSCCL A/C
• (for 9) NSCCL A/C ..Dr
• To Custodian (for B) A/C
• Depositories record the following entries (shares)
• (for 6) Custodian ( for B) A/C Dr
• (for 8) NSCCL A/C ..Dr
• To Custodian (for A) A/C
• At NSE and BSE, trades in rolling settlement are settled on a T2 basis i.e. on the 2nd working day.
• For arriving at the settlement day all intervening holidays, which include bank holidays, NSE holidays, Saturdays and Sundays are excluded.
• Typically trades taking place on Monday are settled on Wednesday, Tuesday's trades settled on Thursday and so on.
• The index-based market-wide circuit breaker system applies at 3 stages of the index movement, either way viz. at 10, 15 and 20.
• These circuit breakers when triggered, bring about a coordinated trading halt in all equity and equity derivative markets nationwide.
• The market-wide circuit breakers are triggered by movement of either the BSE Sensex or the NSE SP CNX Nifty, whichever is breached earlier.
• Categorisation of stocks for imposition of margins
• The Stocks which have traded atleast 80 of the days for the previous six months shall constitute the Group I and Group II.
• Out of the scrips identified above, the scrips having mean impact cost of less than or equal to 1 shall be categorized under Group I and the scrips where the impact cost is more than 1, shall be categorized under Group II.
• The remaining stocks shall be classified into Group III.
• The impact cost shall be calculated on the 15th of each month on a rolling basis considering the order book snapshots of the previous six months. On the basis of the impact cost so calculated, the scrips shall move from one group to another group from the 1st of the next month.
• For securities listed for lt 6 months, the trading frequency and the impact cost shall be computed using the entire trading history of the security.
• What is impact cost? It is the cost of executing a transaction on the stock exchanges.
• Suppose you want to buy 150 shares of Titan.
• You would be able to buy the first 129 shares at a price of Rs237.7 per share. However, to buy the remaining 21 shares, you have to pay Rs237.9 per share. The higher the number of shares that you want to buy will have an impact on the price of the stock.
• This is measured by what is known as the impact cost of the trade.
• The average buy price for 150 shares
• (Rs237.7x129 Rs237.9x21)/150 Rs237.728
• The average of the best bid and ask price is given by Rs 237.475.
• You should ideally expect to buy or sell shares of Titan at this price.
• The impact cost of the order is therefore given by
• Impact cost (237.728 237.475)/237.475
• What does impact cost signify?
• It means you incurred a cost of 0.106 to buy 150 shares because of the liquidity conditions in that stock. The more liquid a stock is the lower its impact cost.
• The index VaR would be the higher of the daily Index VaR based on SP CNX NIFTY or BSE SENSEX. The index VaR would be subject to a minimum of 5.
• Calculate the daily logarithmic return of share
• Ri In (Pi / Pi-1)
• Compute the initial volatility by calculating the standard deviation of returns for the one year period using the formula
• SD s0 1/n Ri E(Ri)2
• Calculate the daily volatility for he subsequent days using EWMA mothod.
• For day 1, the volatility will be
• s1 ? (s0 )2 (1 ?) R12 ½
• For day 2, the volatility will be
• s2 ? (s1 )2 (1 ?) R22 ½
• Daily VaR for individual scrip 3.5 sigma
• Daily Var for index 3 sigma
• A higher SD level is used for the script because the script is expected to have higher volatility as compared to the index, which is a portfolio. The volaility estimate at 3 sigma level represents 99 VaR.
• SEBI approved margin trading in January 2004 and it was introduced in February 2004 in India.
• If you have a margin account with kotakstreet.com and your margin account balance is Rs10,000, then you can buy shares up to Rs40,000.
• Effectively kotakstreet.com provides you with a loan of Rs30,000 to complete your transaction.
• The margin in the account is the portion of the purchase price contributed by the investor the reminder is borrowed from the broker.
• Suppose that the investor initially pays Rs6,000 toward the purchase of Rs10,000 worth of stock (100 shares of Rs100 each), borrowing the remaining Rs4,000 from the broker.
• The initial balance sheet looks like this
• Assets Liabilities and Owners Equity
• Value of stock Rs10,000 Loan from broker Rs4,000
• Equity 6,000
• The initial percentage of margin is
• Margin Equity/value of stock 6000/10,000 0.60
• If the stocks price declines to Rs70 per share, the account balance becomes
• Value of stock Rs7,000 Loan from broker Rs4,000
• Equity 3,000
• The percentage of margin is now
• Margin Equity/value of stock 3000/7,000 0.43 or 43
• Suppose the maintenance margin is 30. How far could the stock price fall before the investor would get a margin call?
• Let P be the price of the stock. The value of the investors 100 shares is then 100P, and the equity in his or her account is 100P-Rs4,000.
• Thus we can say
• (100P-4000) / 100P 0.3
• Or P Rs57.14
• If the price of the stock were to fall below Rs57.14 per share, the investor would get a margin call.
• Short selling is generally defined as the practice of selling borrowed securities.
• Suppose, A feels current market price of a share is Rs.50 and it will reduce Rs.25. He takes loan of a share.
• Buy Rs.25 and return the share
• Profit Rs.25
• Maximum profit is 50 if price is zero, but, maximum loss is unlimited.
• Dividend If dividend is Rs.5, profit Rs.25 5 20. Then dividend is to be paid by the short seller to the lender of the share.
• Investors short sell for one of two reasons
• To seek speculative profit when the price of a security is expected to drop.
• To protect a profit and defer taxes by Hedging their position.
• All shorts are executed on margin.
• The investor has to deposit only margin money.
• Return on Invested Capital from Short Sale
• (Proceeds from Sales Purchase Cost of Share Dividend)/Equity Deposit
• Suppose margin is 60 ( initial margin), Current market price of a share is Rs.100, and it is expected to reduce to Rs80. Dividend is Rs.5
• Return (100 80 5)/60 15/60 25
• Short Sale Initiated 300 Equity Share _at_ Rs50 Rs15000
• Short Sale Covered 300 x Rs30 9000
• Profit 6000
• Dividend _at_ Rs.5 1500
• N/Profit 4500
• Equity Deposit _at_ 50 7500
• (4500/7500) x 100 60
• Suppose that you are bearish on ACC stock and that its current market price is Rs100 per share. You tell your broker to sell short 1 share. The broker borrows 1 share either from another customers account or from another broker.
• Suppose the broker has a 50 margin requirement on short sales. This means that you must have either cash or security in your account worth Rs50 that can serve as margin on the short sale.
• Like investors who purchase stock on margin, a short-seller must be concerned about margin call. If the stock price rises, the margin in the account will fall if margin falls to the maintenance level, the short-seller will receive a margin call.
• Suppose that the broker has a maintenance margin of 30 on short sales. This means that the equity in your account must be at least 30 of the value of your short position at all times. How far can the price of ACC go up before you get a margin call?
• Suppose price has increased to P (where Pgt100).
• The loss on short sales is P 100.
• Then the margin money has reduced to 50 (P -100).
• This reduced margin money is 30 of P.
• Thus, 50 (P -100) .3 P
• Or 150 P .3P
• Or 1.3 P 150
• Or P 115.38.
• If ACC stock should rise above Rs115.38, you would get a margin call, and you will either have to put up additional cash or cover your short position.
• You have sold ACC on short for Rs100.
• If the share price falls, you will profit from short sale.
• On the other hand, if the share price rises, lets say Rs130, you will lose Rs30 per share.
• But suppose that when you initiate the short sale, you also enter a stop-buy order at Rs120.
• The stop-buy order will be executed if the share price surpasses Rs120, thereby limiting your losses to Rs20 per share.
• The stop-buy order thus provides protection to the short-seller if the share price moves up.
• Bought 100 Shares of X Company _at_ Rs.20 Cost Rs.2000
• Now Price Rs.50 Value Rs.5000
• Net Profit Rs.3000
• To protect Net Profit, he will now short sales of 100 shares _at_ Rs.50.
• He has two positions one short and one long of equity shares.
• Note that although this short sales is executed with borrowed securities, it is not necessary to deposit margin money, because his current holding of the stock serves this purpose.
• Price Rs.80 Price Rs.30
• Value of the Stock 8000 3000
• Original Cost 2000 2000
• ___________ ____________
• Profit 6000 1000
• Less Loss on short sales
• (Add profit on Short Sales)
• Short Sales Initiated 5000 5000
• Short Sales Covered 8000 3000
• ________ ________
• (-)3000 2000
• ________ _______
• NET PROFIT 3,000 3,000
• Why SEBI is planning to reintroduce Short-sales?
• When it was banned?
• How does short- sale help the market?
• Indian Security Market
• AVERAGE DAILY TURNOVER
• According to RBI data, household sector accounted for 89 of gross domestic savings during 2000-01, 53 of their savings were in financial assets.
• They invested
• 44 of financial savings in deposits
• 34 in insurance/PFs
• 12 on small savings
• All India All Industries Share Price Index combined and published by the Economic Times on daily basis.
• SP CNX Nifty combined and published by NSE India on daily basis.
• BSE Sensex combined and published by BSE on daily basis.

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Stock market live updates| sensex today : among sectors, the nifty oil & gas index was the biggest loser, down 2%, followed by nifty psu bank and nifty metal, which fell 1.8% and 1.5%, respectively. nifty auto and realty also declined by 1.2% each. on the upside, nifty fmcg was the top gainer, rising 0.3%..

Sensex Today | Shrikant Chouhan, Head Equity Research, Kotak Securities

Today, the benchmark indices witnessed profit booking at higher levels, the Nifty ends 122 points lower while the Sensex was down by 398 points. Among Sectors, Oil Gas and PSU Bank indices lost the most shed over 1.5 percent whereas selective Pharma and FMCG stocks registered buying interest at lower levels. Technically, after muted open one more time market took resistance near 25100 and reversed sharply. On daily charts it has formed small bearish candle on intraday charts it has formed lower top formation which suggest temporary weakness.

We are of the view that, the current market texture is weak but fresh sell of possible only after dismissal of 20 day SMA (Simple Moving Average) or below 24900/81400. Below the same, it could slip till 24775- 24725/81000-80800. On the flip side, 25000/81800 would be the key levels for the bulls. Above which, it could bounce back till 25100-25150/82150-82500.

Sensex Today | Prashanth Tapse, Senior VP (Research), Mehta Equities

Volatility marked the trading session with intense profit-taking in late trades dragging key indices deeper in red at close. All eyes will be on key US inflation data on Friday that will give some hint about the Federal Reserve’s likely move on interest rates in its policy meeting later this month.

Sensex Today | Vinod Nair, Head of Research, Geojit Financial Services.

The domestic market experienced a minor consolidation in line with Asian peers due to correction of commodity prices like crude which has collapsed to 70$. Market sentiment remained cautious due to the slowdown in the Chinese economy. Investors await the release of the US CPI and domestic inflation data. It is anticipated that US inflation will have an uptick in monthly data, while domestic inflation is expected to remain stable. Additionally, this muted trend was influenced by the BoJ’s indication of a potential rate hike if inflation remains elevated.

Currency Check| Indian rupee ends flat against US dollar

Indian rupee ended at 83.98 a dollar, unchanged from its previous close of 83.98.

Market Close | Nifty closed below 25,000, and the Sensex dropped 398 points.

On September 11, Indian markets ended weaker, with the Sensex down 398 points (0.49%) at 81,523.16, and the Nifty slipping 122.65 points (0.49%) to 24,918.45. There were 1,619 advancing stocks, 2,345 declining, and 106 unchanged.

Asian Paints, Bajaj Finance, and Sun Pharma led the gains, while Tata Motors, NTPC, and Adani Ports & SEZ were the top losers.

MC CEO Pay Report: How much were India Inc top bosses paid in FY24?

Among the Nifty 50 companies, there are three top bosses - Thierry Delaporte of Wipro, who resigned in April, Pawan Munjal of Hero MotoCorp, and Rajeev Jain of Bajaj Finance - who took home in excess of Rs 100 crore each in FY24... Read More

PM Modi sets $500-billion target for India’s electronics sector by 2030

Currently, the nation’s electronics market is valued at approximately $155 billion... Read More

Sensex Today | Mphasis Silverline Partners Agentsync for insurance solutions

Sensex today | bharat electronics gets orders worth rs 1155 crore, stock market live updates | samvardhana motherson shares tank 4% as bmw group earnings to fall 'significantly' in 2024.

Samvardhana Motherson International shares, along with other auto players' stock prices, plunged almost four percent in early trade on September 11, following a downward revision of BMW Group’s 2024 guidance. As BMW contributes around five percent to Samvardhana Motherson's topline, the market reacted to the news negatively.

BMW Group's downward revision was triggered in part by additional headwinds in the Automotive Segment resulting from delivery stops and technical actions linked to the Integrated Braking System (IBS) that is provided to the BMW Group by a supplier.

Markets@3 | Indices extend losses, Nifty breaks below 25,000

The Sensex was down 436.60 points or 0.53 percent at 81,484.69, and the Nifty was down 137.60 points or 0.55 percent at 24,903.50.

Stock Market LIVE Updates | Nifty 50 extends losses, here are the worst hit stocks

Kross IPO: Issue booked 7x so far on last day of subscription; check latest GMP

Kross IPO GMP (grey market premium) has risen to around Rs 45 in the unlisted market on the last day of subscription, showing a premium of nearly 20 percent.... Read More

Video of the day

Banks Or IT: Which Stocks Should You Buy Now? | Sectors To Watch | IT Stocks | Stock Market

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Welcome PlayStation 5 Pro, the most visually impressive way to play games on PlayStation

Features including GPU upgrade, advanced ray tracing, and PlayStation Spectral Super Resolution take players to new heights.

UPDATE:  On September 26, 2024, pre-orders will be available directly from PlayStation at  direct.playstation.com  and at participating retailers in territories where direct.playstation.com isn’t available. On October 10, 2024, pre-orders will be available at all other participating retailers.

Over the last four years since the launch of PS5, we’ve worked hard to continuously evolve the console experience and deliver the great games our players expect from us. Today, I’m incredibly proud to announce the next step in that evolution and welcome PlayStation 5 Pro to the PlayStation family – our most advanced and innovative console hardware to date.

We developed PS5 Pro with deeply engaged players and game creators in mind – as many have asked for a console that runs even higher fidelity graphics with smoother frame rates at 60FPS. We achieved this on PS5 Pro with several key performance features.*

• Upgraded GPU : With PS5 Pro, we are upgrading to a GPU that has 67% more Compute Units than the current PS5 console and 28% faster memory. Overall, this enables up to 45% faster rendering for gameplay, making the experience much smoother.
• Advanced Ray Tracing : We’ve added even more powerful ray tracing that provides more dynamic reflection and refraction of light. This allows the rays to be cast at double, and at times triple, the speeds of the current PS5 console.
• AI-Driven Upscaling : We’re also introducing PlayStation Spectral Super Resolution, an AI-driven upscaling that uses a machine learning-based technology to provide super sharp image clarity by adding an extraordinary amount of detail.

PS5 Pro provides gamers with amazing graphics at high frame rates. You can hear Mark Cerny, lead architect for PS5 Pro, discuss the key innovations from PS5 Pro in the following video presentation. This presentation provides a deep dive into the key performance features that make PS5 Pro truly special.

Other enhancements include PS5 Pro Game Boost, which can apply to more than 8,500 backward compatible PS4 games playable on PS5 Pro. This feature may stabilize or improve the performance of supported PS4 and PS5 games. Enhanced Image Quality for PS4 games is also available to improve the resolution on select PS4 games. PS5 Pro will also launch with the latest wireless technology, Wi-Fi 7, in territories supporting this standard. VRR and 8K gaming are also supported.

It’s humbling to see how game creators have embraced the latest technology from PS5 Pro, and several games will be patched with free software updates for gamers to take advantage of PS5 Pro’s features. These games can be identified with a PS5 Pro Enhanced label within their title. Some games you can look forward to include blockbuster hits from PlayStation Studios and our third-party partners, such as Alan Wake 2, Assassin’s Creed: Shadows, Demon’s Souls, Dragon’s Dogma 2, Final Fantasy 7 Rebirth, Gran Turismo 7, Hogwarts Legacy, Horizon Forbidden West, Marvel’s Spider-Man 2, Ratchet & Clank: Rift Apart, The Crew Motorfest, The First Descendant, The Last of Us Part II Remastered, and more. 

We kept the look of the PS5 Pro consistent with the overall PS5 family of products. You’ll notice the height is the same size as the original PS5, and the width is the same size as the current PS5 model to accommodate higher performance specs. Players can add an Ultra HD Blu-ray Disc Drive, or swap out console covers when they become available.

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PS5 Pro fits perfectly within the PS5 family of products and is compatible with the PS5 accessories currently available, including PlayStation VR2, PlayStation Portal, DualSense Edge, Access controller, Pulse Elite and Pulse Explore. The user interface and network services will also remain the same as PS5.

The PS5 Pro console will be available this holiday at a manufacturer’s suggested retail price (MSRP) of $699.99 USD, £699.99 GBP, €799.99 EUR, and ¥119,980 JPY (includes tax). It will include a 2TB SSD, a DualSense wireless controller and a copy of Astro’s Playroom pre-installed in every PS5 Pro purchase. PS5 Pro is available as a disc-less console, with the option to purchase the currently available Disc Drive for PS5 separately.

PS5 Pro will launch on November 7, 2024 and will be available at participating retailers and directly from PlayStation at direct.playstation.com. Preorders will begin on September 26, 2024.

Our PS5 journey would not be possible without the millions of players that have supported us through the years and have shared with us their love of gaming. Whichever console option players choose, whether it’s PS5 or PS5 Pro, we wish to bring everyone the very best gaming experience that fits their needs. 

*Features only available on select PS5 games that have been enhanced for PS5 Pro when compared with the PS5. PS5 Pro enhanced features will vary by game.

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