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Published by Nidhi Agarwal

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Published by: Nidhi Agarwal on May 26, 2012
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FINDINGS Practical situation During my training internship I had experience of real practical situation in the stock Market and

in an Organization. End of June 2009 turned out to be favorable for Indian stock markets. The first few sessions saw optimism in the market on the hope that the government will make policy announcements in the budget. However, the market corrected soon after the announcement of budget due to absence of major policy announcements. The sentiments remained negative during following few sessions. However, the market picked momentum from mid of the month. This was helped by better-than- expected corporate earnings, huge overseas inflows and encouraging global cues. The buoyancy in the market continued in the second half helping the BSE Sensex to touch highest in more than a year towards the month end. On the whole, the market closed on a strong note. Global stocks rallied over the month on encouraging economic data and earnings reports. The MSCI AC World Index gained 8.70%, where as the MSCI Emerging Markets Index climbed 10.86% during the month. The performance of Indian markets was in line with the global counterparts. The Sensex settled the month with a gain of 8.12%, while the Nifty registered a rise of 8.05%. The BSE Mid and Smal l caps

performance was in line with their larger counterparts, gaining 9.74% and 8.11% respectively over the month.

Sector Performance
All the BSE Sectoral indices wrapped the month with gains except Capital Goods. Intense buying spree was seen in Auto, Realty, FMCG and IT indices, which posted gains of over 20%. Metal, Teck, Health Care and Consumer Durable indices were among other top gainers whereas Oil & Gas index posted a marginal rise over the month. Institutional Activities The FIIs flow remained positive in equities with net inflows of Rs 11,625 crores (USD 2.40 bn) during the month. The domestic MFs were also net buyers with inflows of Rs 1,825.50 crores (USD 381 mn) during the month. Major Corporate Events Infosys Technologies announced a 17.28% y-o-y rise in • consolidated net profit for the quarter ended June 2009 to Rs 1,527 crores (USD 318.59 mn). Income from operations for the quarter climbed 12.73% y-o-y to Rs 5,472 crores (USD 1.14 bn). Reliance Industries reported a drop of 11.53% y-o-y in • net profit for the quarter ended June 2009 to Rs 3,636 crores (USD 758.60 mn). Total income for the quarter slipped 21.64% y-o-y to Rs 32,757 crores (USD 6.83 bn).

Overall quarterly corporate earnings performance was better than the market expectations.10 bn) will be spent during 2009-10. China and Japan.5% for June 2009. in rupee terms. Of the total capex plan. Meanwhile. It includes ongoing modernization and expansion. Consolidated revenues for the quarter climbed 12% y-o-y to Rs 2. the markets will track developments and key economic data from US.63% over the month to USD 69. It reported a 27% y-o-y rise in consolidated profit after tax for the quarter ended June 2009 to Rs 125 crores (USD 26. Punj Lloyd along with its group companies bagged orders • worth Rs 10.45 a barrel. This coupled with encouraging earnings outlook for FY2010.40% to Rs 61. Key Macro Developments Industrial production continued to remain positive in May 2009. however. value addition.Steel Authority of India earmarked Rs 59. the Indian markets will be driven by the progress of monsoon. with signs of economic recovery in developed countries and improvement in risk appetite globally.7%. the funds will flow in the emerging markets like India in search of higher growth. policy announcements from the government and key economic data. Rs 10.48 bn) capex plan. with a growth of 2.1 mn). The market is now hoping for better earnings growth prospects for FY2010.56 mn). On the other hand. .70% to USD 12. The exit strategy of the central banks will also have bearing on the global markets.800 crores (USD • 12. The manufacturing growth has also started showing signs of improvement. Outlook On the international front.81 billion.250 crores (USD 2. it dropped 17. oil prices slipped marginally 0. In dollar terms. Core sectors registered a growth of 6.217 crores during June 2009. provides good opportunity for investors to take active participation in the market and increase the equity allocation from long term perspective.000 crores (USD 2.658 crores (USD 554. Exports growth continued to drop for a ninth consecutive month. Now. exports plunged 27. technology up-gradation and sustenance.14 bn) during the month.

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