Stock Market Glossary
55 common Indian share market terms explained in a few sentences each, with links to the matching screens and calculators. Definitions are for education, not investment advice.
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- 52-Week High / Low
- The highest and lowest prices at which a stock traded over the previous 52 weeks (about one year). Traders watch stocks near their 52-week high for momentum and near their 52-week low for possible value or continued weakness. Because the figure is a raw price range, a stock split or bonus issue inside the window can make it misleading until the history is adjusted.Stocks near 52-week highStocks near 52-week lowHow we calculate it
A
- Advance / Decline
- The count of stocks that closed higher (advances) versus lower (declines) in a session, often shown as a ratio. A ratio above 1 means more stocks rose than fell, even if the headline index moved the other way. It is one of the most common measures of market breadth.How we calculate it
B
- Bank Nifty
- The popular name for the Nifty Bank index maintained by NSE Indices. It tracks the most liquid, large banking stocks listed on NSE and is weighted by free-float market capitalisation. It is widely used as a benchmark for the banking sector and as an underlying for index derivatives.Nifty Bank stocksIndian indices
- Beta
- A measure of how much a stock has historically moved relative to a benchmark index. A beta of 1 means it has tended to move in line with the market, above 1 means larger swings and below 1 means smaller swings. Beta is backward-looking and depends on the period and benchmark used to calculate it.High beta stocksLow volatility stocks
- Bhavcopy
- The official end-of-day file an exchange publishes after each trading session, listing every traded security with its open, high, low, close, previous close, volume and turnover. NSE’s full bhavcopy also includes deliverable quantity and delivery percentage. Our end-of-day prices, volumes and delivery data are imported from the NSE and BSE bhavcopies.How we use the bhavcopy
- Bonus Issue
- Free additional shares a company gives existing shareholders out of its reserves, in a fixed ratio such as 1:1 (one new share for every share held). The share count rises and the price adjusts down proportionately, so the value of a holding does not change on the ex-date. A bonus issue does not change the company’s market capitalisation or fundamentals.
- Book Value
- Shareholders’ equity (total assets minus total liabilities) as shown on the balance sheet, often expressed per share. It represents the accounting net worth of the company, not its market value. Book value per share is the denominator of the P/B ratio.Low P/B stocks
C
- CAGR
- Compound annual growth rate: the constant yearly rate at which a value would have grown from its starting level to its ending level, calculated as (ending ÷ starting)^(1 ÷ years) − 1. It smooths out year-to-year swings, so it says nothing about volatility along the way. CAGR cannot be calculated meaningfully when the starting or ending value is zero or negative.CAGR calculatorSales growth stocksHow we calculate 3-year CAGR
- Current Ratio
- Current assets divided by current liabilities. It indicates whether a company has enough short-term assets (cash, receivables, inventory) to meet obligations due within a year. A ratio above 1 is generally considered comfortable, though normal levels differ widely by industry.Strong liquidity stocksCash-rich companies
D
- Debt-to-Equity Ratio
- Total borrowings divided by shareholders’ equity. It shows how much of the business is financed by lenders rather than owners; a higher ratio means more financial leverage and interest burden. Banks and other lenders naturally carry high leverage, so the ratio is best compared within the same industry.Debt-free stocksLow-debt growth stocks
- Delivery Percentage
- The share of a day’s traded quantity that was actually delivered into buyers’ demat accounts, rather than bought and sold within the same day. A high delivery percentage is often read as investors taking positions, while a low one suggests mostly intraday trading. NSE publishes it in its daily bhavcopy; BSE’s bhavcopy does not include it.High delivery percentage stocksHow we calculate it
- Demat Account
- An account that holds shares and other securities in electronic (dematerialised) form. In India demat accounts are opened through a depository participant, such as a broker or bank, with one of the two depositories, NSDL or CDSL. A demat account is needed to take delivery of shares bought on the exchange.
- DII
- Domestic institutional investors: Indian institutions such as mutual funds, insurance companies, banks and pension funds that invest in the market. Their daily net buying or selling in the cash market is published by the exchanges alongside FII/FPI figures. Steady DII buying, driven partly by SIP inflows into mutual funds, has become a significant counterweight to foreign flows.
- Dividend Yield
- Annual dividend per share divided by the current share price, expressed as a percentage. It shows the cash income an investor would receive at today’s price if the dividend stayed the same. A very high yield can reflect a falling share price or a one-off special dividend rather than a sustainable payout.High dividend yield stocks
E
- EPS
- Earnings per share: net profit attributable to equity shareholders divided by the weighted average number of shares outstanding. Diluted EPS also counts shares that could be created from options or convertibles. EPS is usually quoted on a trailing twelve-month (TTM) basis and is the denominator of the P/E ratio.
- Ex-Date
- The first trading day on which a share trades without the right to a declared dividend, bonus, split or rights entitlement. Buyers on or after the ex-date do not receive that benefit, and the price typically adjusts to reflect it. With India’s T+1 settlement, the ex-date is usually the same day as the record date.Record date
F
- Face Value
- The nominal value of a share as stated in the company’s charter, commonly ₹1, ₹2, ₹5 or ₹10 in India. It is unrelated to the market price. Dividends are often announced as a percentage of face value, so a 100% dividend on a ₹2 share is ₹2 per share.
- FII / FPI
- Foreign institutional investors, now formally registered with SEBI as foreign portfolio investors (FPIs). They include overseas funds, pension funds and banks investing in Indian securities. Large FPI inflows or outflows can move the market, and NSE publishes provisional daily FII/FPI and DII cash-market activity.DII
- Free Float
- The portion of a company’s shares available for trading by the public, excluding shares held by promoters and certain other locked-in or strategic holders. Free-float market capitalisation is price times free-float shares. Most major Indian indices, including the Nifty 50 and Sensex, weight their constituents by free-float market capitalisation.
G
- GMP (Grey Market Premium)
- The premium at which IPO shares are informally said to trade in an unofficial, unregulated “grey market” before they list on the exchange. GMP is not published by the exchanges or SEBI, has no legal standing and is not a reliable prediction of the listing price. Figures vary between sources and can change sharply or be manipulated.IPO tracker
I
- IPO
- An initial public offering is the first sale of a company’s shares to the public, after which the shares list on a stock exchange. Investors bid within a price band during a subscription window, and shares are allotted by lottery or proportionately when the issue is oversubscribed. SME IPOs list on the NSE Emerge or BSE SME platforms rather than the main board.IPO tracker
- ISIN
- International Securities Identification Number: a 12-character code that uniquely identifies a security worldwide. Indian ISINs begin with “IN” and are allotted by NSDL; equity shares of companies typically start with “INE”. The same ISIN applies to a share whether it trades on NSE or BSE.
L
- Large Cap
- Under SEBI’s classification for mutual funds, large-cap companies are the 1st to 100th companies by full market capitalisation. AMFI publishes the ranked list twice a year based on average market capitalisation over the preceding six months. The large-cap screener on this site uses a simpler fixed threshold (market cap above ₹50,000 crore), so the lists will not match exactly.Large cap stocks
- Long-Term Capital Gains (LTCG)
- Profit on selling listed equity shares or equity-oriented mutual fund units held for more than 12 months. For transfers on or after 23 July 2024, such gains are taxed at 12.5% on the amount above ₹1.25 lakh in a financial year (plus applicable surcharge and cess), where securities transaction tax conditions are met. Tax rules change, so check the current law or a tax professional before relying on these rates.Capital gains tax calculator
- Lot Size
- The fixed minimum number of shares, or multiple of shares, in which something must be traded or applied for. In an IPO, investors bid in lots set by the issuer; in futures and options, each contract covers a lot set by the exchange. SME platform shares also trade only in lots, which makes the minimum investment higher than on the main board.
- Lower Circuit
- The lowest price at which a stock is allowed to trade in a session, set by its price band. When a stock hits its lower circuit, there are typically only sellers and no buyers at that price, so selling may not be possible until the price recovers or the next session.Lower circuit stocksHow we calculate it
M
- Market Breadth
- How widely a market move is shared across stocks, rather than driven by a few heavyweights. Common measures include the advance/decline count and the number of stocks making new 52-week highs versus lows. Narrow breadth, where an index rises while most stocks fall, is often seen as a sign of a weaker rally.How we calculate it
- Market Capitalisation
- The total market value of a company’s shares: share price multiplied by the number of shares outstanding. In India it is usually quoted in crore (1 crore = 10 million rupees). Full market cap counts all shares, while free-float market cap counts only those available to the public.Large cap stocksMid cap stocksSmall cap stocks
- Mid Cap
- Under SEBI’s classification for mutual funds, mid-cap companies are the 101st to 250th companies by full market capitalisation, based on AMFI’s half-yearly ranked list. The mid-cap screener on this site uses a fixed range of ₹5,000–50,000 crore instead, so the lists can differ.Mid cap stocks
N
- Net Profit Margin
- Net profit divided by revenue, expressed as a percentage. It shows how much of each rupee of sales remains after all expenses, interest and taxes. One-off gains or losses can temporarily distort it.High margin stocks
- Nifty 50
- NSE’s flagship index of 50 large, liquid Indian companies across sectors, maintained by NSE Indices and weighted by free-float market capitalisation. It has a base value of 1,000 as of 3 November 1995. It is the most widely used benchmark for Indian equities and index funds.Nifty 50 stocksIndian indices
O
- Only Buyers
- Market shorthand for a stock locked at its upper circuit: buy orders are pending at the upper price limit but there are no sellers. On this site a stock is listed under only buyers when it closed at its day high with a change close to a 2%, 5%, 10% or 20% price band. This is an end-of-day approximation, not a reading of the live order book.Only buyers — upper circuit stocksHow we calculate it
- Only Sellers
- Market shorthand for a stock locked at its lower circuit: sell orders are pending at the lower price limit but there are no buyers. On this site a stock is listed under only sellers when it closed at its day low with a fall close to a 2%, 5%, 10% or 20% price band. As with only buyers, it is inferred from end-of-day data.Only sellers — lower circuit stocksHow we calculate it
- OPM (Operating Profit Margin)
- Operating profit divided by revenue, expressed as a percentage. It measures profitability from core operations before interest and taxes. Definitions of operating profit vary: some sources use EBITDA (before depreciation), while others use EBIT (after depreciation), so compare margins from the same source.High EBITDA margin stocks
P
- P/B Ratio
- Price-to-book ratio: share price divided by book value per share. A P/B below 1 means the market values the company at less than its accounting net worth. It is most useful for asset-heavy businesses such as banks and less meaningful for companies whose value lies in brands or intellectual property.Low P/B stocksBook value
- P/E Ratio
- Price-to-earnings ratio: share price divided by earnings per share, usually trailing twelve-month EPS. It shows how many rupees investors pay for each rupee of annual profit. A low P/E can signal value or low growth expectations; P/E is not meaningful when earnings are negative.Low P/E stocksEPS
- Price Band
- The maximum percentage by which a stock’s price may move up or down from the previous close in a single session. Indian exchanges assign individual stocks bands such as 2%, 5%, 10% or 20%; stocks in the futures and options segment do not have fixed bands and use dynamic price bands instead. Separately, index-wide circuit breakers can halt the whole market on very large index moves.Upper circuitLower circuit
- Promoter Holding
- The percentage of a company’s shares owned by its promoters (founders, controlling families or parent companies) and the promoter group. Listed companies disclose it every quarter in their shareholding pattern filing with the exchanges. Changes in promoter holding are closely watched as a signal of insider confidence, though sales can have many ordinary reasons.High promoter holding stocksPromoters increasing stakeHow we calculate it
R
- Record Date
- The date on which a company checks its register of members to decide who is entitled to a dividend, bonus, split or rights issue. Only shareholders on record that day receive the benefit. Under T+1 settlement you must buy before the ex-date, which is usually the record date itself, to be on record.Ex-date
- ROCE
- Return on capital employed: earnings before interest and tax (EBIT) divided by capital employed, usually taken as equity plus debt (or total assets minus current liabilities). It measures how efficiently a company earns profit on all the capital it uses, whether from shareholders or lenders. It is particularly useful for comparing capital-intensive businesses.High ROCE stocksHow we calculate it
- ROE
- Return on equity: net profit divided by shareholders’ equity, expressed as a percentage. It shows how much profit a company generates on the money shareholders have invested. High debt can inflate ROE, so it is best read alongside the debt-to-equity ratio and ROCE.High ROE stocks
S
- Sensex
- The BSE Sensex, BSE’s benchmark index of 30 large, well-established companies, weighted by free-float market capitalisation. Its base value is 100 for the year 1978–79, making it India’s oldest widely followed stock index.Sensex stocksIndian indices
- Short-Term Capital Gains (STCG)
- Profit on selling listed equity shares or equity-oriented mutual fund units held for 12 months or less. For transfers on or after 23 July 2024, such gains are taxed at a flat 20% (plus applicable surcharge and cess), where securities transaction tax has been paid. Tax rules change, so check the current law or a tax professional before relying on these rates.Capital gains tax calculator
- SIP
- A systematic investment plan invests a fixed amount in a mutual fund at regular intervals, usually monthly. Because the same amount buys more units when prices are low and fewer when high, it averages the purchase cost over time (rupee-cost averaging). A SIP does not guarantee returns or protect against losses in a falling market.SIP calculatorMutual funds
- Small Cap
- Under SEBI’s classification for mutual funds, small-cap companies are those ranked 251st and below by full market capitalisation in AMFI’s half-yearly list. The small-cap screener on this site uses a fixed range of ₹500–5,000 crore. Small caps tend to be more volatile and less liquid than larger companies.Small cap stocks
- SME Platform
- Separate exchange platforms for small and medium enterprises: NSE Emerge and BSE SME. Listing requirements are lighter than on the main board, shares trade in fixed lots and liquidity is often thin. SME stocks can migrate to the main board once they meet the eligibility criteria.SME stocks
- Stock Split
- Dividing each existing share into several shares of lower face value, for example splitting one ₹10 share into five ₹2 shares. The share price adjusts proportionately, so the value of a holding and the company’s market capitalisation are unchanged. Splits are usually done to make shares more affordable and liquid.Face value
T
- T+1 Settlement
- The settlement cycle in which shares and money change hands one trading day after the trade date (T). India completed its move to T+1 for all listed equities in January 2023. Shares bought today are credited to the buyer’s demat account on the next trading day.
- Traded Value
- The rupee value of shares traded in a session, i.e. the sum of price times quantity for every trade, also called turnover. It is a better gauge of liquidity than volume alone because it accounts for the share price. On this site, most-active lists approximate traded value as closing price times volume.Most active stocks by value
U
- Upper Circuit
- The highest price at which a stock is allowed to trade in a session, set by its price band. When a stock hits its upper circuit, there are typically only buyers and no sellers at that price, so new buy orders may not be filled.Upper circuit stocksHow we calculate it
V
- Volatility
- How much a stock’s price moves around over time, usually measured as the standard deviation of its daily returns, often annualised. Higher volatility means wider price swings in both directions. Unlike beta, volatility measures a stock’s own movement without reference to a market index.Low volatility stocksBeta
- Volume
- The number of shares traded during a session. Unusually high volume shows heightened interest in a stock, often around news or results. Volume on a single exchange understates total activity for stocks listed on both NSE and BSE.High volume stocksVolume shockers
- Volume Ratio
- A day’s traded volume divided by the stock’s average daily volume over a recent period, such as 20 sessions. A ratio of 3 means the stock traded three times its usual volume. Stocks with very high ratios are often called volume shockers.Volume shockersHow we calculate it
X
- XIRR
- Extended internal rate of return: the annualised return on a series of cash flows that occur on different dates, such as SIP instalments and a final redemption. Unlike CAGR, which assumes a single investment, XIRR accounts for the timing and size of each flow. It is the standard way to measure SIP and portfolio returns.CAGRSIP calculator
Figures on this site are calculated as described in our data sources & methodology. Tax rates quoted were current when this page was last reviewed; tax law changes, so confirm with the Income Tax Department or a qualified adviser.