Presented by:

Raman Preet Singh

HOW IT STARTED ?
 In US
 The Epicenter
 Sub-prime Mortgage Crisis
 Created fundamentally by the
government policies and institutions.
 Quasi-Government companies: Fannie
Mae and Freddie Mac
 Lehman Brothers bankruptcy
 Sale of Merrill Lynch to Bank of
America
 AIG demand of loan from the federal
reserve
 Created panic in WALL STREET and
throughout the global indices
DOW JONES FTSE-100 DAX SHANGHAI
US UK GERMANY CHINA

11,543 5,636 6,422 2,397

8,451 3,932 4,541 2,073

CAC-40 NIKKEI RTS SENSEX

FRANCE JAPAN RUSSIA INDIA
4,482 13,072 1,646 14,564

3,176 8,276 792 11,309

*29th Aug – 13th Oct

OTHER CONTRIBUTING
FACTORS
 High prices of basic commodities
 Inflation
 Unemployment: ILO predicted
20mn jobs lost by 2009 end
 High price of oil
 EFFECTS on
INDIA
 “IF
THE GLOBAL FINANCIAL
CRISIS CAUSES A RECESSION IN
THE MAIN ECONOMIES, THIS
WILL COMPROMISE OUR
EXPORTS.”
►MANMOHAN SINGH
Prime Minister,
in an interview to an French daily
le Figaro
EFFECTS…
 Credit crunch
 Lesser exports
 Decreased production
 Lesser investments
 Declining sales
 Falling rupee
 Sluggish real estate to affect demand for
cement, steel and other construction materials
THE BIG FALL
 MUKESH AMBANI
 RELIANCE
INDUSTRIES
 59.23 -54% 26.87

 AZIM PREMJI
 WIPRO
 15.18 -55% 6.76

st th
*1 Jan- 8 Oct
 K P SINGH
 DLF GROUP
 40.81 -76% 9.57

 ANIL AMBANI
 RELINCE ADAG
 41.85 -58% 17.47

*in$billion
GOVERNMENT ‘S
ACTION…
 Provide liquidity
 Attract investors
 Avoid rumors
 Control basic factors as inflation(8%), repo
rate(6.5%), reverse repo rate(5%), CRR(5.5%)
 Prevent rupee depreciation