Stock markets in India

Emerging Asia: This links

with WJEC A2 Geography
Theme India.

1.2 How and why is the

economy changing ? Factors
affecting the growth of
financial industries
 India: The big picture
Measure of development India
Population 1.1 billion

Population growth rate 1.38%

GDP $ 3.161 trillion

GDP per capita $ 3.300

GDP growth 7.6%

Land area 2,937,190 sq km

Unemployment 9.9%

Internet users 50.6 million

Random Commercial facts
Are these points significant to a consideration of Indian commerce
and trade? If so, why?

 Nokia have 78% of the mobile handset market in India

 20 million Indians live in countries other than India

 17,000 Indian citizens attend British universities each year

 Currently there are 9 million university students in India

 A considerable proportion of India’s budget for scientific

research is spent on defence and military applications

 India is in the top 14 markets for pharmaceutical products

such as medical drugs and its market position is rising.
India Stock markets
 India's stock markets have been on the rise
since May 2004.

 The benchmark Bombay Stock Exchange (BSE)

index, the Sensex, has shot up by over 100%
to cross 9,000 points for the first time in its
history.

 Buyers, like the aggressive foreign institutional

investors who have pumped in more than
$10bn this calendar year, are excited about
India's growing economic strength.
India Stock markets
 Others are convinced that
the economy is
fundamentally strong

 They believe that the

country's financial markets
are more mature than those
of other emerging
economies.
India Stock markets

 Many believe that the

Sensex is proof of India's
economic strength.

 Most global reports have

indicated that the Indian
economy will be larger
than the developed ones,
except China, in the next
few decades.
India Stock markets 4

 But this logic falls flat when one

realises that, unlike the Dow or
Footsie, less than 5% of Indian
companies are listed on Indian stock
exchanges.

 A better indication of the health of

India's economy would be the
collective movement of the 2,500
shares that are regularly traded,
rather than the Sensex.
What have you learned?
Summarise the key
issues in your own
words