Indian Stock Market Resources

Stock Market Glossary — Key Terms for Indian Investors

Understanding the language of the stock market is the first step to becoming a more informed investor. Below is a reference glossary of terms you will encounter regularly in NSE/BSE company filings, financial news, and market commentary.

52-Week High / Low

The highest and lowest price at which a stock has traded in the past 52 weeks. Used as a reference point for momentum and valuation context.

ADR / GDR

American Depositary Receipt / Global Depositary Receipt. Certificates representing shares of Indian companies traded on foreign exchanges. Price parity matters for arbitrage monitoring.

AGM (Annual General Meeting)

Mandatory yearly meeting of shareholders. Companies announce dividends, appoint auditors, and pass resolutions. AGM dates are exchange-filed events.

Block Deal / Bulk Deal

Large single-session trades. Block deals are negotiated off-market (before 9:15 AM). Bulk deals are on-market trades exceeding 0.5% of total shares. Both are disclosed to the exchange the same day.

Book Closure / Record Date

The cut-off date to be eligible for a corporate action (dividend, bonus, rights). You must hold shares before this date to receive the benefit.

Buyback

A company repurchasing its own shares from the open market or through a tender offer, typically signalling that management believes the stock is undervalued.

Circuit Breaker / Filter

A SEBI mechanism that halts trading in a stock when it moves beyond a set percentage limit (typically 5%, 10%, or 20%) in either direction in a single session.

DRHP (Draft Red Herring Prospectus)

The preliminary IPO document filed with SEBI. Contains company financials, risk factors, and business details before the final prospectus is approved.

EBITDA

Earnings Before Interest, Taxes, Depreciation, and Amortisation. A widely used measure of operational profitability, used to compare companies across industries.

EPS (Earnings Per Share)

Net profit divided by total shares outstanding. A key profitability metric; an earnings "beat" means actual EPS exceeded analyst consensus estimates.

FII / FPI

Foreign Institutional Investor / Foreign Portfolio Investor. Overseas entities investing in Indian equities. FII/FPI buy/sell data is released daily by SEBI and strongly influences market direction.

Free Float

The proportion of shares available for public trading, excluding promoter holdings and locked-in shares. Low free float can cause high price volatility on moderate volumes.

IPO (Initial Public Offering)

A company's first sale of shares to the public. In India, IPOs must be approved by SEBI and listed on NSE, BSE, or both. Key dates: open date, close date, allotment date, and listing date.

LTP (Last Traded Price)

The price at which a stock was last traded. During market hours, this updates in real time. After close, LTP equals the closing price.

Market Cap

Total market value of a company's outstanding shares (price × shares). Categorised in India as Large-cap (top 100), Mid-cap (101–250), and Small-cap (251+) by SEBI ranking.

NCLT

National Company Law Tribunal. Adjudicates corporate disputes including mergers, insolvency proceedings under IBC, and shareholder complaints. NCLT orders are material events requiring exchange disclosure.

OFS (Offer for Sale)

Existing shareholders (usually promoters) selling shares through the exchange mechanism without raising new capital for the company. Common in government disinvestment programmes.

P/E Ratio (Price-to-Earnings)

Stock price divided by EPS. Indicates how much investors pay per rupee of earnings. High P/E may indicate growth expectations; low P/E may indicate undervaluation or poor growth prospects.

PLI (Production Linked Incentive)

A government scheme offering financial incentives to manufacturers based on incremental sales from a base year. Companies selected under PLI typically see a positive market reaction.

Promoter Holding

The percentage of shares held by the company's founders or controlling shareholders. Trends in promoter holding (increasing = confidence, decreasing = concern) are closely tracked by investors.

QIB (Qualified Institutional Buyer)

Institutional investors (mutual funds, FPIs, insurance companies, banks) eligible to participate in IPO QIB tranches. High QIB subscription is a positive signal of institutional confidence.

Rights Issue

A company raising fresh capital by offering new shares to existing shareholders at a discounted price. Shareholders who don't subscribe face dilution of their ownership percentage.

SEBI

Securities and Exchange Board of India. The primary regulator of the Indian securities market. Issues guidelines, investigates violations, and approves IPOs and market infrastructure.

Short Selling

Borrowing and selling shares in anticipation of a price decline, then buying them back at a lower price. Permitted in India under the Securities Lending and Borrowing mechanism (SLB).

Dividend Yield

Annual dividend per share divided by the current share price, expressed as a percentage. A useful metric for income-focused investors comparing dividend-paying stocks.

Upper / Lower Circuit

The maximum percentage a stock can rise (upper circuit) or fall (lower circuit) in a single trading session. When hit, trading is halted for that stock.

NSE & BSE Regulatory Filing Types — A Quick Reference

Listed companies in India must disclose material events to the stock exchanges immediately under SEBI's LODR (Listing Obligations and Disclosure Requirements) Regulations. These exchange filings are the most reliable primary source of market-moving information.

Understanding what each filing type means helps you assess the significance of a news alert quickly. The table below summarises the most common filing types and their typical market impact.

Stock News Event Classification — What Alerfo Detects

Not all news is equal. Alerfo's AI model classifies every article into one of 30 event types and assigns a severity score from 1 (routine) to 10 (highly material). Below is an overview of the main event categories and what they typically signal for investors.

How to Evaluate a Stock News Alert — A Step-by-Step Approach

Receiving a news alert is just the first step. Acting on it effectively requires a structured evaluation process. Use this checklist each time you receive an alert about a stock you hold or are watching.

• Identify the source type. Exchange filing? Government order? Corporate press release? Editorial? Primary sources (exchange filings, government notifications) carry the most weight. Editorials carry less.
• Read the full headline and summary — not just the headline. Many headlines are written for clicks. The actual content often contains important caveats, conditions, or context that changes the interpretation significantly.
• Assess whether the event is company-specific or sector-wide. If five companies in the same sector are in the news simultaneously, the driver is likely macro (RBI rate decision, government policy, global commodity prices) rather than individual company merit.
• Check the AI severity score. On Alerfo, each alert comes with a severity score (1–10) and an event type classification. Focus your attention on high-severity events (7–10). Scores 1–3 are routine updates unlikely to cause significant price movement.
• Verify from the exchange filing. For material events, always cross-check the NSE or BSE filing directly. Exchange filings are legally binding disclosures; editorial reports may contain errors or speculation.
• Consider the fundamental context. A company with strong cash flows, low debt, and consistent earnings can absorb negative news more readily than a company already under financial stress. Good businesses often recover from short-term news shocks.
• Do not act impulsively on single-article alerts. Wait for the full picture. Initial reports are frequently incomplete or later contradicted. Set a rule for yourself: read at least three independent sources before acting on any single alert.
• Consult a SEBI-registered advisor for significant decisions. News alerts are informational tools. Large buy or sell decisions, especially those involving a significant portion of your portfolio, should involve professional financial advice.

Useful Official Resources for Indian Investors

The following are official government, regulatory, and exchange websites. These are primary sources of market data, company filings, and investor education.