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Recession AND Indian Stock Market: Rishu Pahwa (95) Vinod Varyani (116) Nishant Shekhar

The document discusses the Indian stock market and the effects of the 2008 recession. It provides background on what a stock market is and its key functions. It then describes the two major Indian stock exchanges, the BSE and NSE. The recession originated from the US subprime crisis and caused the Indian stock market to crash as global markets were interconnected. Key indicators like the BSE Sensex saw major declines from January to October 2008 as foreign investors withdrew funds from India. The recession had significant impacts on the Indian economy and stock market through falling prices and weakening of the rupee.

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57 views10 pages

Recession AND Indian Stock Market: Rishu Pahwa (95) Vinod Varyani (116) Nishant Shekhar

The document discusses the Indian stock market and the effects of the 2008 recession. It provides background on what a stock market is and its key functions. It then describes the two major Indian stock exchanges, the BSE and NSE. The recession originated from the US subprime crisis and caused the Indian stock market to crash as global markets were interconnected. Key indicators like the BSE Sensex saw major declines from January to October 2008 as foreign investors withdrew funds from India. The recession had significant impacts on the Indian economy and stock market through falling prices and weakening of the rupee.

Uploaded by

nishant4u1986
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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RECESSION

AND
INDIAN STOCK
MARKET
RISHU PAHWA(95)
VINOD VARYANI(116)
NISHANT SHEKHAR(88)
STOCK MARKET
• A stock market is the market that people use
to trade shares, which are like small pieces of
the company that a person can own. The value of
the share depends on how many people want to
buy it and how many people are selling it. The
stock market is one of the most important
sources for companies to raise money. This
allows businesses to be publicly traded, or raise
additional capital for expansion by selling shares
of ownership of the company in a public market
FUNCTIONS
INVESTORS
 Provides liquidity
 It permits him the access to the profitable activities of the big
companies
 It offers the possibility of diversifying

COMPANIES
 Finance
 Free Publicity
 More Fiscal purpose advatages for the companies
INDIAN STOCK
MARKET
BOMBAY STOCK EXCHANGE
BSE Sensex or Bombay Stock Exchange Sensitive Index is a value-
weighted index composed of 30 stocks started in 01 of jan, 1986. It
consists of the 30 largest and most actively traded stocks,
representative of various sectors, on the Bombay Stock Exchange.
The sensex is an “index”. An index is basically an indicator. It gives you
general idea about most of the stocks have gone up or most of the
stocks havegone down.

NATIONAL STOCK EXCHANGE


The Nifty is an indicator of all the major companies of the NSE.  Just
like the Sensex represents the top stocks of the BSE, the Nifty
represents the top stocks of the NSE.
RECESSION
• The economy goes through different cycles. One of
them is recession. It is observed when the prices
start to increase, the living standard starts to fall,
unemployment rises, and businesses stop expanding.
• Another indicator of recession is a decreasing gross
national product (GDP) of a nation. In fact, many
experts consider that there is an economic recession
only when a negative GDP growth has been observed
over two consecutive quarters.
• Economic recession is defined as a significant decline
in the economic activity across a country, lasting
longer than a few months.
ORIGIN
• The US economy has suffered 10 recessions since the
end of World War II. It was time of high
unemployment, low profits, low prices of goods, and
high poverty.
• Subprime is the cause of USA Economy melt down. 
It is the very popular news among everyone and it is
become very serious then expected. It caused more
damage to all the industries. Subprime crisis caused
big loss to the banks.And the whole globe is feeling
heat of it.
EFFECTS ON INDIAN
MARKET
• The economy and the stock market are closely related. The
stock markets reflect the buoyancy of the economy. The Indian
stock markets also crashed due to a slowdown in the US
economy . These days the most talked about news is the current
financial crisis that has engulfed the world economy. In the age
of globalization, no country can remains isolated from the
fluctuations of world economy. Heavy losses suffered by major
International Banks is going to affect all countries of the world
as these financial institutes have their investment interest in
almost all countries.
TREND
• JAN,1O-08 21078 pts
• JAN, 21-08 16963 pts
• JAN, 22-08 15332 pts
• FEB, 11-08 Market plunges by 834 pts closes to
16631 pts
• MAR, 03-08 Market witnessed 2nd biggest loss of
900 pts closes to 16677 pts
• MAR, 17-08 14809 pts
• 0CT, 24-08 8701 pts
• Looking at this, many promoters planning IPO's suddenly
developed cold feet.
• It has three big impact on India (a) market was falling
continuously, (b) our banks faced severe cash crunch
resulting in shortage of liquidity in market, (c) Rupee was
weakening against dollar.
• Actually all the above three problems are interconnected and
have their roots in the above-mentioned global crisis.
• For the last two years, our stock market was touching new
heights thanks to heavy investments by Foreign Institutional
Investors (FIIs). However, when the parent companies of
these investors (based mainly in US and Europe) found
themselves in a severe credit crunch as a result of sub-prime
mess, the only option left with these investors was to
withdraw their money from Indian Stock Markets to meet
liabilities at home.
THANK YOU !

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