Capital Market at SPA

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CAPITAL MARKET
A Study on factors affecting fluctuations in stock
market
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EXECUTIVE SUMMARY
The main objective of this project is to review the real meaning of capital
market, and to: A Study on factors affecting fluctuations in stock market
Stock market is an avenue for growth of earnings. This project includes how
broking is being done in stock market. It involves stock market analysis such as
fluctuations in Sensex reasons for fluctuations in stock market, fluctuations in
stock market and reasons for the same. Stock market has been the best
avenue for investment in securities since last 10 years. Mostly future and
option trading was the worst trading in stock market in these sessions. I have
covered various sessions for analysis from April 2006 to March 2011. In these
sessions, stock market was most volatile so that I have covered various
analyses with most affected factors to the global market. I have made analysis
of Sensex which made of 30 Shares. In this project, I have included most gainer
period and most loser period with reasons for the same. I also included
comparison between Bond yields and foreign investments by foreign investors.
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CHAPTER I
INTRODUCTION
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INTRODUCTION TO TOPIC
STOCK MARKET IN INDIA
A stock market is an open market for fiscal operations such as trading of a firm's share and
derivatives at a fixed cost. These securities are further listed on a stock exchange. A Share
market does not offer any corporeal service and is not a separately owned business entity. It
was in 1875 that the Indian Share Market first started functioning. The first share trading
association in India was known as the Native Share and Stock Broker's Association, only to
become the Bombay Stock Exchange (BSE) later on. This trading association started off its
operations with around 318 members.
Main components of Indian Share Market:
Bombay Stock Exchange (BSE)

Bombay Stock Exchange is known to be the oldest stock exchange in the entire Asian region.
It started functioning in 1875 with the name 'The Native Share and Stock Broker's
Association'.
Under the Securities Contracts (Regulation) Act, 1956, the association got its recognition as a
stock exchange in 1956. When it started, it was just an association of persons but with the
recognition it got transferred to a corporate and demutualised entity. The main index of BSE
is known as the BSE SENSEX or simply SENSEX (Sensitivity Index). It is an index which
comprises of 30 financially sound company scrips, with an option to be reviewed and
modified from time-to-time. The index calculation is based on the 'Free-float Market
Capitalization' methodology. Leading bourses like the Dow-Jones also follow this
methodology. Currently the Sensex is hovering around the 17,000 mark.
National Stock Exchange (NSE)

National Stock Exchange (NSE) is considered to be the leader in the stock exchange scenario
in terms of the total volume traded. The market capitalisation the National Stock Exchange
touched about $921.31 billion at the end of May 2009. The National Stock Exchange
received the recognition of a stock exchange in July 1993 under Securities Contracts
(Regulation) Act, 1956. NSE has a fully automated screen based trading system which is
known as the NEAT system.
The transactions are carried on with speed, efficiency, and are all transparent. The risk
management system of the National Stock Exchange is world class and can be considered as
the benchmark for other bourses.
The leading index of NSE is known as Nifty 50 or just Nifty. It comprises of 50 diversified
benchmark Indian company scrips and is constructed on the basis of weighted average market
capitalization method.
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Regulatory Authority of Indian Share Market
SEBI or Securities and Exchange Board of India is the market watchdog and has the
responsibility of protecting the investors' interests, develops regulatory norms and helps in
the development of the securities market in India.
Key strengths of the Indian securities markets
· The key strengths of the Indian capital markets include a fully automated trading system on
all stock exchanges.
· A wide range of products, an integrated platform for trading in both cash and derivatives,
and a nationwide network for trading in a variety of securities.
· The securities markets in India have made enormous progress in developing Sophisticated
instruments and modern market mechanisms.
· The real strength of the Indian securities market lies in the quality of regulation. The market
regulator, Securities and Exchange Board of India (SEBI) is an independent and effective
regulator.
· The NSE and BSE have most advanced and scientific risk management systems.
· The growing number of market participants, the growth in volume of securities transactions,
the reduction in transaction costs, the significant improvements in efficiency, transparency
and safety, and the level of compliance with international standards have earned for the
Indian securities market a new respect in the world.
History
Established in 1875, the Bombay Stock Exchange is Asia's first stock exchange.
In 12th century France the courratiers de change were concerned with managing and
regulating the debts of agricultural communities on behalf of the banks. Because these men
also traded with debts, they could be called the first brokers. A common misbelief is that in
late 13th century Bruges commodity traders gathered inside the house of a man called Van
der Beurze, and in 1309 they became the "Brugse Beurse", institutionalizing what had been,
until then, an informal meeting, but actually, the family Van der Beurze had a building in
Antwerp where those gatherings occurred; the Van der Beurze had Antwerp, as most of the
merchants of that period, as their primary place for trading. The idea quickly spread around
Flanders and neighboring counties and "Beurzen" soon opened in Ghent and Amsterdam.
In the middle of the 13th century, Venetian bankers began to trade in government securities.
In 1351 the Venetian government outlawed spreading rumors intended to lower the price of
government funds. Bankers in Pisa, Verona, Genoa and Florence also began trading in
government securities during the 14th century. This was only possible because these were
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independent city states not ruled by a duke but a council of influential citizens. The Dutch
later started joint stock companies, which let shareholders invest in business ventures and get
a share of their profits - or losses. In 1602, the Dutch East India Company issued the first
share on the Amsterdam Stock Exchange. It was the first company to issue stocks and bonds.
The Amsterdam Stock Exchange (or Amsterdam Beurs) is also said to have been the first
stock exchange to introduce continuous trade in the early 17th century. The Dutch "pioneered
short selling, option trading, debt-equity swaps, merchant banking, unit trusts and other
speculative. instruments, much as we know them" There are now stock markets in virtually
every developed and most developing economies, with the world's biggest markets being in
the United States, United Kingdom, Japan, India, China, Canada, Germany, France, South
Korea and the Netherlands.
INDUSTRY PROFILE
STOCK BROKING INDUSTRY
“Stock Broker’ means a stock-broker who has either made an application for registration or is
registered as a stockbroker in accordance with the rules and regulations made under the
Securities and Exchange Board of Indian Act, 1992 (15 of 1992).” (Section 65(69) of Finance
Act, 1994 as amended) The service provided by the stock broker becomes liable to pay
Service Tax subject to the conditions that the:
(a) Stock Broker should be registered as per SEBI Act, 1972.
(b) Stock should be listed in the Stock Exchange.
(b)The Stock Exchange must be recognized Stock Exchange as per Securities Contract
(Regulation) Act, 1956.
(c) The Sale/Purchase should be on behalf of an investor.
Investor requires a Stock Broker to buy and sell shares in stock exchanges (BSE, NSE etc.).
Stock Brokers are registered member of stock exchange. A stock broker can register to one or
more stock exchanges.
Only stock brokers can directly buy and sell shares in Stock Market. An investor must contact
a stock broker to trade stocks. Brokers charge commissions (brokerages) for their service.
Brokerage is usually a percent of total amount of trade and varies from broker to broker.
Stock broking in India is undergoing a transition and consolidation phase witnessed never
before. The competition is likely to become so severe after the entry of many players,
retaining a customer is most difficult practice for any service provider. Though India has a
very big untapped market but the players will not flourish unless they change the way the
customers are being served. Given the awareness level of today customers every player has to
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treat with care and make the customer feel that he is the king. Number of Online Share trader
in India has crossed the line. More and more customers are coming under this umbrella and
many of the existing one are changing pavilion, so customer retention and satisfaction are
now very important. Players keep coming with new schemes in order to attract new
customers and retain the existing one. This is being supplemented with increased advertising
and brand building efforts.
Strengths
· Huge market potential as India moves toward financial sector reforms with greater inclusion
of retail segment and creation of new market as regulators allowed trading in new classes like
currency futures, interest rate derivatives, SME equities etc.
· Low leverage at industry level with many brokerage houses strengthening their net worth
over the years and limited external fund requirement.
· Adequate capitalisation levels, at least for larger players, coupled with low leverage
provides cushion to absorb losses in the short term weak operating environment.
Challenges
· Protecting brokerage yield in a highly competitive and fragmented equity brokerage

industry.
· Achieving a critical scale of operations to sustain profitability even in a prolonged dull

phase.
· Highly volatile and un-predictable earning profile being linked to the vagaries of capital
market.
· Regulatory risk which could impact the earning profile and bring structural changes in
the industry.
· Limited financial flexibility as banks have capital market exposure limits and mutual
fund houses are very selective in taking exposure to brokerage houses.
· Continue upgrading the risk management systems and monitoring policies to mitigate
associated risks, especially during periods of extreme market volatility.
· Moving towards value added services like wealth management, portfolio management,
research etc. Intense competition expected from FII brokerage houses.
· Diversifying earning profile to reduce concentration risk on the brokerage business.
· Maintaining flexible cost structure for protecting profitability in a market downturn.

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Primary Market
Primary market also called the new issue market, is the market for issuing new securities.
Many companies, especially small and medium scale, enter the primary market to raise
money from the public to expand their businesses. They sell their securities to the public
through an initial public offering. The securities can be directly bought from the shareholders,
which is not the case for the secondary market. The primary market is a market for new
capitals that will be traded over a longer period.
In the primary market, securities are issued on an exchange basis. The underwriters, that is,
the investment banks, play an important role in this market: they set the initial price range for
a particular share and then supervise the selling of that share.
Investors can obtain news of upcoming shares only on the primary market. The issuing firm
collects money, which is then used to finance its operations or expand business, by selling its
shares. Before selling a security on the primary market, the firm must fulfil all the
requirements regarding the exchange.
After trading in the primary market the security will then enter the secondary market, where
numerous trades happen every day. The primary market accelerates the process of capital
formation in a country's economy.
The primary market categorically excludes several other new long-term finance sources, such
as loans from financial institutions. Many companies have entered the primary market to earn
profit by converting its capital, which is basically a private capital, into a public one,
releasing securities to the public. This phenomena is known as "public issue" or "going
public."
There are three methods though which securities can be issued on the primary market: rights
issue, Initial Public Offer (IPO), and preferential issue. A company's new offering is placed
on the primary market through an initial public offer.
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Secondary Market
Secondary Market is the market where, unlike the primary market, an investor can buy a
security directly from another investor in lieu of the issuer. It is also referred as "after
market". The securities initially are issued in the primary market, and then they enter into the
secondary market. All the securities are first created in the primary market and then, they
enter into the secondary market. In the New York Stock Exchange, all the stocks belong to
the secondary market. In other words, secondary market is a place where any type of used
goods is available. In the secondary market shares are maneuverer from one investor to other,
that is, one investor buys an asset from another investor instead of an issuing corporation. So,
the secondary market should be liquid.
Example of Secondary market:
In the New York Stock Exchange, in the United States of America, all the securities belong to
the secondary market
Importance of Secondary Market:
Secondary Market has an important role to play behind the developments of an efficient
capital market. Secondary market connects investors' favouritism for liquidity with the capital
users' wish of using their capital for a longer period. For example, in a traditional partnership,
a partner cannot access the other partner's investment but only his or her investment in that
partnership, even on an emergency basis. Then if he or she may breaks the ownership of
equity into parts and sell his or her respective proportion to another investor. This kind of
trading is facilitated only by the secondary market
Importance of Secondary Market: Secondary Market has an important role to play behind
the developments of an efficient capital market. Secondary market connects investors'
favouritism for liquidity with the capital users' wish of using their capital for a longer period.
For example, in a traditional partnership, a partner cannot access the other partner's
investment but only his or her investment in that partnership, even on an emergency basis.
Then if he or she may breaks the ownership of equity into parts and sell his or her respective
proportion to another investor. This kind of trading is facilitated only by the secondary
market
GROWTH OF STOCK BROKING INDUSTRY
Domestic equity brokerage volume reported a growth of 66% in Q1 FY09-10 on a sequential

quarter on quarter basis (42% on year on year basis) aided by increasing stock prices, easing
of global concerns and a stable government at the Centre. In-fact, brokerage turnover in Q1
FY09- 10 was second only to the highest ever volume recorded in Q3 FY07-08. The growth
in Q1 FY09-10 was not driven by the derivative segment but by the cash segment which
accounted for 27% of the total turnover, same as that in Q3 FY07-08, while in Q4 FY08-09
cash segment had accounted for only 23% of the total turnover. Equity brokerage turnover in
Q1 FY09-10 alone equalled 36% of the total turnover in FY08-09 signalling that FY09-10
may be not be as bad as FY08-09 or may even see some growth during the year. However,
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given the prevailing uncertainty in global market which could jeopardise Indian counterparts
as well, ICRA expects high volatility to continue for a while both in terms of stock prices and
also in trading turnover. ICRA expects brokerage yield to remain under pressure with
increasing competition and changed dynamics with a few of the players offering a flat fee
structure. The average broking yields have declined from 7-8 basis points to around 5-6 basis
points in the last few years.
However, the fall going forward, is not expected to be as steep and ICRA does not expect the
average broking yields to go below 4 basis points over the medium term. In ICRA’s view,
post recent market turmoil, traders / investors would be more willing to trade through
brokerage houses with sound risk management systems & adequate liquidity in order to
protect their own capital, even if it means premium brokerage rates.
ICRA expects the operating expenses of brokerage houses to remain relatively high as a
proportion of their revenues in FY09-10 , as compared to that in FY07-08 and earlier, on
account of the several new branches set up in FY07-08 and FY08-09 remaining under
gestation period, expansion in new business lines and higher expense on STT due to change
in regulation.
CONCLUSION
Even as the market turmoil seems to have eased out somewhat and brokerage turnover has
Witnessed an upward movement in FY11-12, ICRA expects the market volatility to continue.
Accordingly, ICRA maintains a neutral outlook for brokerage houses in the short to medium
Term as pressure on overall profitability is likely to persist.

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CHAPTER 2
RESEARCH METHODOLOGY
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RESEARCH METHODOLOGY
TITLE OF THE STUDY:-
A Study on factors affecting fluctuations in stock market
OBJECTIVE OF STUDY
 To know the basic terminology of stock market.
 To make the investor aware about the factors which may affect their investment.
 To forecast or predict the future trend of stock market which helps in investment.
 To know the effect of these fluctuation on the Indian economy.
Research Methodology
Sources of data: Data used in this study is of secondary in nature. Sensex is taken as a
source of information which widely describes Indian stock market. Here monthly prices of
BSE Sensex, Inflation, and IIP numbers are taken for the study purpose.
Secondary data
Secondary data refers to the information or facts already collected. It is

collected with objective of understanding the part status of any variable or the
data collected and reported by some source is accessed and used for the
objective of a study. Normally in research, the scholars collect published data
analyse it in order to explain the relationship between variables.
Advantages of secondary data
The information can be collected by incurring least cost.
The time required for obtaining the information is very less.
Most of the secondary data are those published by big institutions. So

they contain large quantity of information
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Hypothesis:
This is the exploratory research which tries to shows the factors which are making stock
market volatile.
1. Any fluctuation in foreign market has more effect on Indian stock market than that of
domestic market.
2. In the given volatile economic conditions, the market is efficient to any news and
information.
Scope:
 This study can be used by investors, traders and other professionals as a supplement
to their own research.
 This study can be used to individual who are at initial stage of investment in stock
market.
 To different Organization who provides tips for Buying and Selling shares.
 To review market forecast provided by the organization about fluctuation in the
market.
Limitations of the study
 The study can be done for larger period only, lower tenure don’t give good results
 Perfect data for the study cant captured from this sorter period
 The time Period which is given for study is very sorter.
 The data is a bit older and only studies recession.
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CHAPTER 3
DATA ANALYSIS AND INTERPRETATION
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DATA ANALYSIS
For the month of April 2006
Date Open High Low Close
3-Apr-06 11342.96 11579.1 11342.96 11564.36
4-Apr-06 11599.8 11710.69 11570.11 11638.01
5-Apr-06 11671.14 11755.2 11653.39 11746.9
7-Apr-06 11845.13 11930.66 11564.87 11589.44
10-Apr-06 11620.38 11691.92 11535.28 11662.55
12-Apr-06 11693.15 11702.77 11302.78 11355.73
13-Apr-06 11366.91 11380.83 11008.43 11237.23
17-Apr-06 11323.74 11560.9 11323.74 11539.68
18-Apr-06 11624.97 11834.77 11624.97 11821.57
19-Apr-06 11880.05 11986.09 11799.62 11895.98
20-Apr-06 11941.49 12053.74 11866.21 12039.55
21-Apr-06 12053.9 12102 11860.35 12030.3
24-Apr-06 12063.73 12071.07 11882.48 11915.24
25-Apr-06 11943.08 11953 11621.61 11646.78
26-Apr-06 11677.05 11965.09 11635.4 11938.53
27-Apr-06 11968.8 12086.91 11803.49 11835.02
28-Apr-06 11698.68 11877.32 11344.61 11851.93
Analysis
In starting of financial year market was opened at 11,342 points and closed at 11,851 points
at the end of the month. This month market was crossed 12,000 mark and made all time high
12,102 on 21st & all time low 11,008 on 13th.
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Reasons
 Increased in crude oil prices.

 Financial Results of Indian corporate.
 FIIs positive response in Financial Results.
 FIIs positive response in 3rd week than average buying and selling.
For the month of May 2006

2-May-06 12103.78 12288.51 12103.78 12218.78
3-May-06 12231.12 12337.01 12134.19 12310.72
4-May-06 12358.31 12482.91 12264.14 12347.63
5-May-06 12373.47 12443.54 12304.59 12359.7
8-May-06 12393.22 12511.07 12393.22 12462.47
9-May-06 12488.38 12546.47 12356.04 12513.86

10-May-06 12546.93 12624.37 12530.98 12612.38
11-May-06 12631.54 12671.11 12397.02 12435.41
12-May-06 12400.71 12421.76 12224.44 12285.11
15-May-06 12272.64 12272.64 11770.76 11822.2
16-May-06 11861.18 11954.51 11378.96 11873.73
17-May-06 11962.87 12238.81 11962.87 12217.81
18-May-06 12163.98 12163.98 11330.45 11391.43
19-May-06 11549.67 11697.11 10799.01 10938.61
22-May-06 11071.63 11142.9 9826.91 10481.77
23-May-06 10590.67 10859.2 10185.48 10822.78
24-May-06 10830.98 11000.96 10504.59 10573.15
25-May-06 10520.9 10720.67 10274.93 10666.32
26-May-06 10735.14 11050.77 10735.14 10809.35
29-May-06 10855.03 10992.38 10781.61 10853.14

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30-May-06 10886.61 10988.23 10722.92 10786.63

31-May-06 10679.49 10679.49 10111.96 10398.61
Analysis
In this may market opened 300 points up than the last trading day of the April. But after that
market was decline by every day and go down 10,000 points on 22nd May. This month market
made all time high 12,670 on 10th May and all time low 9,827 on 22nd May. On 31st May
market closed at 10,398 points which was 1500 points less than the previous month closing.
Reasons
 FIIs were selling more than the buying

 Crude oil price declining
 Kerala and Bengal election
For the month of June 2006

1-Jun-06 10472.46 10597.23 10017.82 10071.42
2-Jun-06 10104.57 10477.35 10011.45 10451.33
5-Jun-06 10537.08 10552.38 10186.33 10213.48
6-Jun-06 10087.96 10192.73 9884.89 9957.32
7-Jun-06 9919.28 10051.81 9609.21 9756.76
8-Jun-06 9664.9 9664.9 9200.8 9295.81
9-Jun-06 9270.78 9849.2 9262.2 9810.46
12-Jun-06 9858.47 9859.38 9428.03 9476.15
13-Jun-06 9360.06 9360.06 8993.58 9062.65
14-Jun-06 9156.97 9387.06 8799.01 8929.44
15-Jun-06 9133.36 9582.97 9092.16 9545.06
16-Jun-06 9703.06 10118.28 9703.06 9884.51
19-Jun-06 9903.11 10049.94 9755.21 9997.84

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20-Jun-06 9958.33 9958.33 9745.17 9822.52
21-Jun-06 9797.87 10054.05 9757.54 10040.14
22-Jun-06 10093.38 10362.74 10093.38 10275.88
23-Jun-06 10201.31 10453.61 10025.19 10401.3
26-Jun-06 10427.85 10451.47 9991.12 10042.06
27-Jun-06 10058.29 10224.26 9902.33 10151.01
28-Jun-06 10067.55 10204.66 9909.76 10129.7
29-Jun-06 10193.94 10326.05 10109.56 10162.16
30-Jun-06 10316.12 10626.84 10316.12 10609.25
Analysis
In this month market was opened at 10,472 points. This month investors were losing hope for
the good return in first fortnight when market touched 8,799. This month market movement
was 1800 to 2000 points. This month market made all time high at 10,626 points on last
trading day of the month and gave closed above 10,000 points.
Reasons
 FIIs’s selling presser in first fortnight and buying presser in second fortnight
 Increased in crude prices
 Increased Inflation rate
 Good expectation of Q1 results
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For the month of July 2006
3-Jul-06 10646.56 10729.92 10589.46 10695.26
4-Jul-06 10755.45 10800.11 10644.72 10662.22
5-Jul-06 10641.33 10940.45 10611.35 10919.64
6-Jul-06 10836.49 10839.53 10703 10767.97
7-Jul-06 10813.75 10887.67 10440.02 10509.53
10-Jul-06 10484.25 10704.78 10461.73 10684.3
11-Jul-06 10699.62 10699.62 10566.71 10614.35
12-Jul-06 10604.64 10939.68 10549.85 10930.09
13-Jul-06 10922.61 10922.61 10797.49 10858.5
14-Jul-06 10782.98 10782.98 10563.76 10678.22
17-Jul-06 10647.26 10647.26 10262.57 10293.22
18-Jul-06 10336.62 10406.43 10149.85 10226.78
19-Jul-06 10320.59 10406.21 9972.73 10007.34
20-Jul-06 10247.87 10409.58 10225.18 10352.94
21-Jul-06 10336.38 10336.38 10035.24 10085.91
24-Jul-06 9881.03 10252.75 9875.35 10215.37
25-Jul-06 10351.75 10443.05 10323.77 10415.61
26-Jul-06 10465.34 10648.77 10362.61 10617.27
27-Jul-06 10671.77 10762.67 10589.68 10741.59
28-Jul-06 10787.65 10787.65 10603.83 10680.23
31-Jul-06 10759.19 10853.91 10710.29 10743.88
Analysis
Market was stable whole of the month. Market movement was 1000 points of this month.
Market tried to crossed 11,000 but closed at 10,939 points on 12th which was all time high of
this month. Market gave positive close at the end of the month than the opened on very first
day.
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Reasons
 Rice in the crude oil price

 Rumor of resigning of our Prime Minister Dr. Manmohan Singh.
 Weak global markets concern
 Healthy result given by Indian major companies
 RBI hiked interest rate but not affect heavily on market
For the month of August 2006

1-Aug-06 10737.5 10777.47 10646.65 10751.66
2-Aug-06 10747.13 10891.38 10730.13 10876.19
3-Aug-06 10955.27 11081.9 10875.87 10923.16
4-Aug-06 10951.81 11039.34 10810.04 10866.51
7-Aug-06 10863.28 10869.66 10780.01 10812.64
8-Aug-06 10839.53 11028.02 10839.53 11014.97
9-Aug-06 10990.73 11187.65 10943.83 11145.18
10-Aug-06 11175 11213.03 11051.75 11149.17
11-Aug-06 11181.34 11241.11 11069.25 11192.46
14-Aug-06 11221.86 11330.3 11221.86 11312.99
16-Aug-06 11384.05 11507.92 11384.05 11448.31
17-Aug-06 11498.47 11551.59 11379.44 11477.48
18-Aug-06 11507.14 11508.17 11409.11 11465.72
21-Aug-06 11488.03 11531.6 11375.9 11511.68
22-Aug-06 11547.42 11619.86 11460.93 11502.62
23-Aug-06 11579.92 11579.92 11374.86 11406.65
24-Aug-06 11367.74 11566.89 11297.23 11531.95
25-Aug-06 11589.35 11635.25 11542.1 11572.2
28-Aug-06 11583.73 11633.35 11552.44 11619.52
29-Aug-06 11651.96 11739.77 11651.96 11706.85
30-Aug-06 11735.05 11756.08 11643.38 11723.92
31-Aug-06 11754.07 11794.43 11675.08 11699.05
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Analysis
Sensex opened at 10,737 and make the low of 10,646 on that day itself. With making
high of 11,794 on the last trading day of the month.Sensex closed at 11,700. Sensex was in
positive 1000 than last month’s closing.
Reasons
 US Federal Reserve’s decision to hold interest rates steady at old level(5.25%).

 Fall in crude price
For the month of September 2006

1-Sep-06 11699.57 11795.02 11666.01 11778.02
4-Sep-06 11824.49 11939.96 11824.49 11914.21
5-Sep-06 11927.42 11945.53 11847.93 11904.6
6-Sep-06 11908.53 11983.48 11904.92 11933.21
7-Sep-06 11893.33 11921.3 11815.43 11853.85
8-Sep-06 11859.44 11940.58 11825.22 11918.65
11-Sep-06 11959.56 11971.6 11505.6 11550.69
12-Sep-06 11564.95 11671.64 11445.19 11660.79
13-Sep-06 11723.78 11938.41 11723.78 11893.79
14-Sep-06 11936.8 12002.94 11892.24 11973.02
15-Sep-06 11977.69 12041.7 11847.61 12009.59
18-Sep-06 12006.19 12114.95 12006.19 12071.3
19-Sep-06 12103.44 12152.6 11915.21 11970.47
20-Sep-06 11946.32 12128.99 11833.61 12109.14
21-Sep-06 12167.91 12285.9 12167.91 12274.27
22-Sep-06 12244.41 12303.42 12170.2 12236.78
25-Sep-06 12257.27 12273.45 12145.09 12173.91
26-Sep-06 12206.79 12331.45 12160.58 12321.19
27-Sep-06 12359.01 12442.82 12339.98 12366.91
28-Sep-06 12388.66 12431.79 12340.17 12380.74
29-Sep-06 12414.66 12485.17 12381.29 12454.42
22
Analysis
Sensex opened at 11699.57 and make the low of 11,445 on 12th September. With making the
high of 12,485 on the last trading day Sensex closed at 12,454.
Reasons
 Crude oil price dropped to the five month lower.

 Strong support from US and European Economy.
 IIP rose to 12.4 per cent
 Appreciation of Rupee Value.
 Expectation of Short interest rate remains unchanged.
For the month of October 2006
3-Oct-06 12473.79 12489.28 12343.8 12366.39
4-Oct-06 12401.09 12419.65 12178.83 12204.01
5-Oct-06 12299.21 12415.97 12299.21 12389.41
6-Oct-06 12391.26 12434.22 12357.96 12372.81
9-Oct-06 12335.82 12429.74 12261.49 12365.83
10-Oct-06 12416.43 12481.93 12341.34 12363.77
11-Oct-06 12446.72 12514.18 12301.51 12353.49
12-Oct-06 12387.89 12558.71 12315.02 12537.98
13-Oct-06 12632.62 12756.23 12632.62 12736.42
16-Oct-06 12785.03 12953.76 12785.03 12928.18
17-Oct-06 12981.53 12994.45 12819.35 12883.83
18-Oct-06 12886.33 12920.59 12830.84 12858.48
19-Oct-06 12881.8 12925.6 12654.98 12723.59
20-Oct-06 12756.41 12849.02 12679.85 12709.4
23-Oct-06 12757.31 12766.3 12612.36 12623.28

23
26-Oct-06 12636.16 12718.31 12636.16 12698.41
27-Oct-06 12741.85 12921.23 12741.85 12906.81
30-Oct-06 12925.43 13039.3 12844.85 13024.26
31-Oct-06 13048.76 13075.85 12907.94 12961.9
Analysis
Market opened at 12,473 points p 3rd Oct. and closed at 12,961 on 31st Oct. Market made its
all time low at 12,178 points at 4th Oct. and all time low at 13,075 points on last trading day
of the month which was good sign for the investors. Market movement was 600 to 800 points
of this month. This month market crossed 13,000 points which was made history of Sensex
life. It took 135 days for Sensex to move from 12,000 to 13,000 and 123 days to move from
12,500 to 13,000.
Reasons
 "The 8 per cent GDP growth rate and the remarkable corporate performance had
contributed to the rally in the stock markets,"
 The BSE Bankex was up 1.9 per cent at 6,517.85.
 The BSE Midcap Index ended at 5,422.63 up 26.36 points or 0.5 per cent.
 Heavy buying led by FIIs and mutual funds thus market was touched 13,000 level
For the month of Nov 2006

1-Nov-06 12992.62 13050.73 12937.3 13033.04
2-Nov-06 13062.52 13137.74 13014.65 13091.12
3-Nov-06 13119.34 13146.86 13017.84 13130.79
6-Nov-06 13155.11 13206.87 13113.39 13186.89
7-Nov-06 13208.79 13300.69 13135.21 13156.66
8-Nov-06 13176.08 13202.68 12950.57 13072.51
9-Nov-06 13107.78 13192.89 13069.85 13137.49
10-Nov-06 13187.51 13303.85 13104.98 13282.91
24
13-Nov-06 13295.24 13410.08 13287.28 13399

14-Nov-06 13439.71 13486.74 13380.77 13425.5
15-Nov-06 13476.28 13506.08 13390.79 13469.37
16-Nov-06 13500.7 13588.01 13459.28 13505.89
17-Nov-06 13678.04 13678.04 13383.43 13429.48
20-Nov-06 13390.95 13463.06 13200.36 13430.71
21-Nov-06 13434.58 13630.41 13434.58 13616.77
22-Nov-06 13625.09 13740.39 13625.09 13706.53
23-Nov-06 13667.13 13790.82 13643.47 13680.83
24-Nov-06 13669.81 13767.85 13665.52 13703.33
27-Nov-06 13716.46 13799.02 13716.46 13773.59
28-Nov-06 13690.67 13691.12 13577.38 13601.95
29-Nov-06 13649.2 13711.76 13586.04 13616.73
30-Nov-06 13630.9 13745.16 13630.61 13696.31
Analysis
In this month market opened at 12,992 points on 1st Nov. and that day market made its all
time low of this month. Market movement in this month was 1000 to 1200 points. This
month market made its all time high at 13,799 points on 27th Nov. and gave closed at 13,696
points on the last trading day of this month.
Reasons
 FIIs positive impact on market

 Previous month created good impact
25
For the month of Dec 2006

1-Dec-06 13729.67 13857.81 13725.78 13844.78
4-Dec-06 13846.71 13912.54 13828.9 13874.33
5-Dec-06 14028.47 14028.47 13905.65 13937.65
6-Dec-06 13951.09 14035.3 13847.67 13949
7-Dec-06 13962.94 14002.72 13915.74 13972.03
8-Dec-06 14007.67 14009.56 13756.86 13799.49
11-Dec-06 13783 13801.98 13261.73 13399.43
12-Dec-06 13413.61 13492.21 12801.65 12995.02
13-Dec-06 13039.02 13223 12830.38 13181.34
14-Dec-06 13256.81 13524.77 13239.79 13487.16
15-Dec-06 13545.6 13669.65 13545.6 13614.52
18-Dec-06 13695.6 13744.17 13416.4 13731.09
19-Dec-06 13737.36 13748.62 13237.39 13382.01
20-Dec-06 13452.69 13568.09 13232.56 13340.21
21-Dec-06 13313.91 13441.36 13182.35 13384.86
22-Dec-06 13398.13 13493.88 13362.11 13471.74
26-Dec-06 13501.44 13726.62 13490.77 13708.34
27-Dec-06 13734.01 13911.59 13734.01 13859.69
28-Dec-06 13893.29 13960.39 13819.77 13846.34
29-Dec-06 13873.03 13929.1 13770.06 13786.91
Analysis
In Dec, Market opened at 13,729 on 1st Dec. and closed at 13,786 on 29th Dec. Above this
judge that this month market stable at the opening situation. In this month market movement
was 1200 to 1300 points. The Sensex on December 5, 2006 crossed the 14,000-mark to touch
14,028 points which was created new milestone. Overall this month was good for investor.
Reasons
 The market was broken by the RBI decision to hike in CRR

26
 Tata and CSN for acquiring Corus resulted in 2.77 per cent decline in the share price
of Tata Steel. ( Bidding)
 Both FIIs and MFs were net sellers to the tune of `333 crore and `1,305 crore,
respectively.
For the month of Jan 2007
2-Jan-07 13827.77 13980.54 13797.44 13942.24
3-Jan-07 13969.45 14035.67 13897.42 14014.92
4-Jan-07 14029.04 14060.35 13850.38 13871.71
5-Jan-07 13768.79 13971.82 13763.39 13860.52
8-Jan-07 13855.89 13855.89 13599.87 13652.15
9-Jan-07 13650.96 13748.42 13493.38 13566.33
10-Jan-07 13569.57 13569.57 13336.52 13362.16
11-Jan-07 13331.38 13667.8 13303.22 13630.71
12-Jan-07 13729.07 14070.88 13729.07 14056.53
15-Jan-07 14110.44 14202.12 14103.12 14129.64
16-Jan-07 14146 14211.15 14070.65 14114.73
17-Jan-07 14116.25 14185.12 14089.63 14131.34
18-Jan-07 14165.77 14325.92 14140.35 14217.75
19-Jan-07 14271.24 14300.11 14067.52 14182.71
22-Jan-07 14217.8 14259.07 14111.75 14209.24
23-Jan-07 14212.12 14212.12 14025.74 14041.24
24-Jan-07 14069.61 14156.46 14043.54 14110.46
25-Jan-07 14151.62 14307.19 14115.4 14282.72
29-Jan-07 14306.97 14316.54 14185.92 14211.96
31-Jan-07 14219.38 14269.31 14045.61 14090.92

27
Analysis
In this month open as previous trend at 13,827 points on 2nd Jan. achieving new milestone.
Market made all time high at 14,325 points 18th on Jan. and made all time low at 13,303
points on 11th June. Market gave closed at 14090 points on last trading days of the months.
Reasons
 This bullish had supported by FIIs and Mutual Funds.

 Successful IPO ( Parsvnath Developers and Sobha Developers)
 Third Quarter result
For the month of Feb 2007
1-Feb-07 14124.36 14278.08 14109.91 14267.18
2-Feb-07 14293.11 14462.77 14293.11 14403.77
5-Feb-07 14432.09 14526.51 14372.36 14515.9
6-Feb-07 14541.24 14564.8 14452.78 14478.19
7-Feb-07 14493.56 14663.26 14478.45 14643.13
8-Feb-07 14690.58 14697.69 14523.16 14652.09
9-Feb-07 14684.35 14723.88 14493.67 14538.9
12-Feb-07 14529.28 14529.28 14146.22 14190.7
13-Feb-07 14168.33 14363.74 13957.7 14090.98
14-Feb-07 13990.41 14036.61 13805.36 14009.9
15-Feb-07 14107.09 14372.96 14107.09 14355.55
19-Feb-07 14406.88 14479.18 14372.07 14402.9
20-Feb-07 14449.23 14466.76 14230.47 14253.38
21-Feb-07 14199.07 14312.88 14157.72 14188.49

28
22-Feb-07 14200.11 14287.03 13978.05 14021.31
23-Feb-07 14071.27 14071.27 13568.08 13632.53
26-Feb-07 13684.95 13723.4 13383.88 13649.52
27-Feb-07 13703.41 13703.41 13408.56 13478.83
28-Feb-07 13045.12 13298.52 12800.91 12938.09
Analysis
In February 2007, Market open at high 35 points than last day of the last month. In this month
market was very hurt because in this month market movement 1100 to 1200 points. On 1st
Feb market open at 14124.36 and close on 28th Feb at 12938.09. In this month market run
their previous trend till budget was not declared. After, Budget market was decline in last
week of the February.
Reasons
 Raising Short-Term Capital Gains Tax to 15 per cent

 Making Long-Term Capital Gains Taxable
 Introduction of Tax on Dividends
 Increase in Service Tax rates: The spread of Service
 Non Reintroduction of Section 80 L
For the month of March 2007

1-Mar-07 13013.74 13193.13 12861.35 13159.55
2-Mar-07 13139.1 13254.03 12836.75 12886.13
5-Mar-07 12716.85 12716.85 12344.44 12415.04
6-Mar-07 12573.01 12760.22 12427.13 12697.09
7-Mar-07 12792.9 12902.18 12390.46 12579.75
8-Mar-07 12649.77 13099.83 12596.86 13049.35
9-Mar-07 13107.37 13145.72 12788.16 12884.99

12-Mar-07 12916.67 13056.86 12844.99 12902.63
29
13-Mar-07 12924.5 13026.85 12817.62 12982.98
14-Mar-07 12694.36 12694.36 12504.1 12529.62
15-Mar-07 12655.94 12789.81 12510.75 12543.85
16-Mar-07 12570.52 12638.78 12316.1 12430.4
19-Mar-07 12484.64 12655 12426.66 12644.99
20-Mar-07 12746.94 12798.8 12674.77 12705.94
21-Mar-07 12735.91 12964.94 12664.33 12945.88
22-Mar-07 13071.81 13326.24 13071.81 13308.03
23-Mar-07 13343.57 13386.95 13196.9 13285.93
26-Mar-07 13345.73 13345.73 13090.8 13124.32
28-Mar-07 13034.27 13035.56 12861.18 12884.34
29-Mar-07 12862.53 13004.4 12832.69 12979.66
30-Mar-07 13018.21 13111.87 12984.13 13072.1
Analysis
In March 2007, Market open at 13013.74 on 1st March and close at 13072.1 on 30stMarch
which indicated that there was big movement on first day and last day of the month. In this
month market was open at low than previous week of last month. In this month market was
13386.95 all time high on 23rd march of this month and 12316.1 all time low on 16th march.
Market movement 900to1000 points in March. In first week of March market was fall
because of some changes in Budget 2007-08.
Reason
 US markets remained quiet this fortnight with DOW maintaining overall stagnancy over
the period having several ups and downs during the period which affected the Indian
economy very much.
 RIL in effort to become global player in the petrochemicals would be signing MoU with
Dow chemical, the second largest chemical company in the world.
 Getting strong turbulence from the US markets, the market is supposed to remain
volatile in this last fortnight before the end value buying in fundamentally strong
counters, if market corrects itself to the attractive levels.

30
2-Apr-07 12811.93 12811.93 12425.52 12455.37
3-Apr-07 12503.75 12657.75 12481.86 12624.58
4-Apr-07 12691.24 12835.36 12691.24 12786.77
5-Apr-07 12791.6 12899.31 12711.5 12856.08
9-Apr-07 12904.85 13194 12904.85 13177.74
10-Apr-07 13236.2 13236.2 13075.48 13189.54
11-Apr-07 13221.76 13294.9 13161.21 13183.24
12-Apr-07 13127.86 13160.15 13030.87 13113.81
13-Apr-07 13163.02 13421.05 13119.88 13384.08
16-Apr-07 13479.49 13708.4 13479.49 13695.58
17-Apr-07 13733.18 13755.76 13581.04 13607.04
18-Apr-07 13602.9 13762.92 13602.9 13672.19
19-Apr-07 13538.71 13658.11 13423.64 13619.7
20-Apr-07 13684.95 13915.62 13684.95 13897.41
23-Apr-07 13972.81 14046.52 13879.39 13928.33
24-Apr-07 13893.72 14197.32 13850.07 14136.72
25-Apr-07 14141.7 14238.29 14052.17 14217.77
26-Apr-07 14273.17 14383.72 14127.18 14228.88
27-Apr-07 14219.25 14219.25 13884.53 13908.58
30-Apr-07 13823.4 13901.12 13693.59 13872.37
Analysis
In April, First fortnight market taking strong position in first half but bear took firm grip
again in the latter week. In 2st April market was opened at 250 points down than previous
month closing and market moves 1500 to 1800 points. This month market so volatile but
finally markets close on 13872.37 which was 700 points high than the previous month
closing. Sensex lost around 400 points in last two day of second week.
31
Reasons
 Market downtrend was led by the banking and IT stocks mainly. There is fear of
decrease in credit demand if the lending rates rise further which dipped the banking
stock. IT declined on the grounds of reduced US exports earnings due to appreciation
in Rupee prices against Dollar.
 In this month Rupee was touched its seven year high level of 43.01 against Dollar
which is a big concern for the IT sector as well the export oriented companies their
export as well the earnings may witness fall.
 Market bled heavily in the aftermath of the RBI decision to hike the CRR and Rapo
rate as result Sensex reached at a six months low level going down by 616 points.

3-May-07 13987.77 14107.06 13987.77 14078.21
4-May-07 14129.89 14189.21 13912.92 13934.27
7-May-07 14044.71 14067.07 13861.38 13879.25
8-May-07 13886 13956.4 13741.24 13765.46
9-May-07 13707.86 13806.37 13612.04 13781.51
10-May-07 13823.36 13976.79 13745.23 13771.23
11-May-07 13691.86 13864.18 13562.95 13796.16
14-May-07 13954.41 14026.02 13924.02 13965.86
15-May-07 13948.91 14023.86 13885.46 13929.33
16-May-07 13949.81 14159.36 13936.88 14127.31
17-May-07 14217.36 14352.98 14217.36 14299.71
18-May-07 14261.47 14337.06 14201.01 14303.41
21-May-07 14414.83 14451.3 14384.61 14418.6
22-May-07 14458.48 14483.59 14348.26 14453.72
23-May-07 14490.03 14500.64 14325.89 14363.26
24-May-07 14344.7 14389.66 14174.05 14218.11
25-May-07 14073.61 14364.95 14046.06 14338.45
32
28-May-07 14467.85 14527.47 14368.4 14397.89

29-May-07 14418.98 14530.15 14372.07 14508.21
30-May-07 14501.46 14576.37 14379.21 14411.38
31-May-07 14451.31 14573.81 14448.57 14544.46
Analysis
On 1st May market was opened around 100 points high than previous month closing. In this
month market moved almost up rally. All time high of this month was 14576 on 30th may and
all time low was 13562 on 11th may. So this month market movement was around 2000
points. This month closing same as previous month 700 points high than April. At first
fortnight market gained 312 points led by Ril which hit its all time high.
Reasons
 Strong results especially by the IT companies like results especially by the IT

companies like Wipro and Satyam which performed above par.
 Globally, the Dow in the US, after crossing the 13,000 level, moved forward slowly
and steadily, barring a few weak movements.
 The fortnight also witnessed increased political heat on account of the UP elections.
The BSP appears to be headed towards majority and is likely to form the government
on its own. The Congress has emerged a poor fourth and the ouster of Mulayam Singh
government may affect the market sentiments.
 Favorable monetary policy declared by RBI this affect on Banking stock and finally
market closed above 14000.
33

1-Jun-07 14610.28 14682.1 14539.89 14570.75
4-Jun-07 14618.78 14683.36 14465.68 14495.77
5-Jun-07 14514.2 14571.31 14432.67 14535.01
6-Jun-07 14551.53 14590.82 14234.07 14255.93
7-Jun-07 14195.84 14362.58 14139.09 14186.18
8-Jun-07 14063.94 14229.22 14010.61 14063.81
11-Jun-07 14170.81 14268.91 14057.63 14083.41
12-Jun-07 14122.33 14153.44 13946.99 14130.95
13-Jun-07 14139.92 14152.79 13968.38 14003.03
14-Jun-07 14087.91 14219.24 14087.91 14203.72
15-Jun-07 14277.61 14326.55 14112.53 14162.71
18-Jun-07 14241.76 14283.71 14057.26 14080.14
19-Jun-07 14088.58 14315.18 14058.79 14295.5
20-Jun-07 14359.96 14449.38 14347.58 14411.95
21-Jun-07 14415.56 14526.44 14406.67 14499.24
22-Jun-07 14508.63 14560.32 14441.76 14467.36
25-Jun-07 14469.43 14521.62 14424.71 14487.72
26-Jun-07 14478.75 14560.48 14478.75 14501.08
27-Jun-07 14520.19 14520.19 14407.12 14431.06
28-Jun-07 14498.05 14537.04 14435.24 14504.57
29-Jun-07 14589.52 14663.25 14574.45 14650.51
Analysis
On 1st day market gained 170 points supported from the Banking stock. In this month market
movement was 500 to 600 points. In this month market was continuously up rally. This
month market created 14683 points all time high on 4th June and 13946 points all time low on
12th June of this month. Then rest of trading days market closing above 14000 points.
34
Reasons
 Banking stocks SBI and PNB leading the rally. These stocks boomed on the
speculation that RBI would roll back the recent interest rate hike.
 GDP growth rate touched an 18-year peak of 9.4 per cent during 2006-07.
 Double digit growth in manufacturing and service sectors. L&T came out with very
good quarterly numbers showing high growth of infrastructure and construction
industry.
 Offloading of stocks by FIIs was also a reason behind the fall. It was due to the
interest rate hike by the European Central Bank to six year high of 4 per cent.
 Interestingly, Midcap and Small-cap witnessed growth of 0.26 per cent and 1.33 per
cent respectively despite the fall in the Sensex in general.

2-Jul-07 14685.16 14745.97 14638.88 14664.26
3-Jul-07 14720 14828.39 14720 14806.51
4-Jul-07 14868.14 14906.93 14790.75 14880.24
5-Jul-07 14932.53 14963.26 14731.22 14861.89
6-Jul-07 14843.43 15007.22 14826.56 14964.12
9-Jul-07 15018.71 15085.22 15005.47 15045.73
10-Jul-07 15100.13 15114.95 14966.4 15009.88
11-Jul-07 14948.15 15015.35 14829.55 14910.62
12-Jul-07 14963.53 15112.22 14963.53 15092.04
13-Jul-07 15216.83 15330.73 15216.83 15272.72
16-Jul-07 15295.03 15341.38 15239.41 15311.22
17-Jul-07 15357.6 15440.2 15272.46 15289.82
18-Jul-07 15296.06 15325.78 15160.27 15301.17
19-Jul-07 15357.38 15593.31 15357.38 15550.13
20-Jul-07 15625.63 15683.03 15524.68 15565.55
23-Jul-07 15560.57 15773.37 15477.91 15732.2

35
24-Jul-07 15802.19 15868.85 15742.32 15794.92
25-Jul-07 15711.87 15771.26 15572.98 15699.33
26-Jul-07 15768.28 15812.27 15654.4 15776.31
27-Jul-07 15487.76 15495.51 15159.68 15234.57
30-Jul-07 15278.03 15451.81 15135.25 15260.91
31-Jul-07 15358.69 15568.85 15224.82 15550.99
Analysis
In this month market situation was boomed. In this month market was crossed 15000 points
on 6th July and very next day market was opened at above 15000 points. And after that
market was up trend rest of the days. Looking at First fortnight's market movement, the
Sensex had gone up close to 500 points. All time high was 15868 points on 24th July and all
time low 14720 points on very early 2nd July of this month. The last day of the month market
was closed at 15550 points and this indicated that market was boomed period from last three
months.
Reasons
 The market is likely to remain upbeat, with inflation losing steam and weathermen
putting out a positive monsoon forecast for July.
 The market has got a major boost from the strong global indices as well as the huge
inflow of foreign money.
 Vishal retail and DLF were listed on the bourses and Vishal hit `800 during the
trading hours.
 Dow crossed 14000 gaining more than 300 points. Shanghai Composite and Hang
Seng too went up by 270 and 680 points respectively.
 Last fortnight saw huge inflow of FII money aggregating to `9724 crore. If we look at
the year-to-date figure this stands at close to `38000 crore, an indication of the
increased confidence of foreign investors in Indian economy. And they were invested
in DLF and ICICI Bank IPO.
36
For the month of Aug 2007

1-Aug-07 15344.02 15344.02 14910.52 14935.77
2-Aug-07 15022.87 15134.53 14896.47 14985.7
3-Aug-07 15061.13 15235.51 15061.13 15138.4
6-Aug-07 14892.6 14928.8 14705.58 14903.03
7-Aug-07 15038.03 15142.04 14901.83 14932.77

8-Aug-07 15088.07 15340.24 15088.07 15307.98
9-Aug-07 15452.44 15542.4 15062.1 15100.15
10-Aug-07 14674.92 14901.31 14570.89 14868.25
13-Aug-07 14965.65 15044.74 14869.15 15017.21
14-Aug-07 15066.71 15069.64 14964.66 15000.91

16-Aug-07 14584.92 14584.92 14345.03 14358.21
17-Aug-07 14309.37 14318.56 13779.88 14141.52
20-Aug-07 14512.28 14680.09 14406.91 14427.55
21-Aug-07 14512.19 14534.51 13941.93 13989.11
22-Aug-07 14055.4 14281.48 13870.7 14248.66

23-Aug-07 14458.33 14554.93 14128.72 14163.98
24-Aug-07 14237.26 14455.49 14163.61 14424.87
27-Aug-07 14581.35 14858.93 14581.35 14842.38
28-Aug-07 14841.61 14952.04 14751.68 14919.19
29-Aug-07 14651.49 15029.53 14592.11 14993.04

30-Aug-07 15168.69 15200.81 15053.98 15121.74
31-Aug-07 15131.36 15350.91 15131.36 15318.6
Analysis
On very first trading day market opens at 200 points down. This month market was very
volatile with 1600 to 1800 market movement. In first fortnight the market was volatile 600 to
800 points. But market was crashed 200 to 300 points. BSE Sensex fell 650 points on August
16, marking its second-biggest plunge in history. On the whole, the last fortnight saw a
decline of 1000 points. This month’s market all time high was 15542 points on 9th and all
37
time low 13705 points on 6th. Market created its high and low in first 10 days. Finally end of
the month market gave close 15318 points close 31st Aug. which 200 points low than the last
month’s closing.
Reasons
 Japanese yen become strongest and dollar and euro also become strongest. This might
affected in sell out by FIIs in emerging nation including India.
 RBI sought to contain the liquidity by increasing the CRR by 50 basis points. Thus
Bank cut its deposit rate.
 FIIs pumped more money into the market this time. They remained net buyers to the
tune of ` 1,500 crore.
 Ambuja cement offered to buy the share at `154 each.
 SBI announced merger with one of the associates State Bank of Saurastra.
For the month of Sep 2007

3-Sep-07 15401.99 15427.16 15323.05 15422.05
4-Sep-07 15482.13 15521.48 15389.62 15465.4
5-Sep-07 15535.35 15580.86 15407 15446.15
6-Sep-07 15383.18 15637.74 15350.18 15616.31
7-Sep-07 15655.37 15716.06 15565.22 15590.42
10-Sep-07 15413.58 15626.28 15363.53 15596.83
11-Sep-07 15668.4 15698.98 15506.1 15542.77
12-Sep-07 15608.5 15661.44 15486.81 15505.36
13-Sep-07 15547.66 15650.14 15547.66 15614.44
14-Sep-07 15713.66 15824.65 15568.36 15603.8
17-Sep-07 15664.74 15726.06 15467.46 15504.43
18-Sep-07 15547.07 15691.88 15468.8 15669.12
19-Sep-07 15940.79 16335.3 15940.79 16322.75
20-Sep-07 16341.55 16415.88 16261.36 16347.95

38
21-Sep-07 16352.32 16616.84 16308.09 16564.23
24-Sep-07 16697.89 16869.64 16599.66 16845.83
25-Sep-07 16890.75 16928.02 16676.98 16899.54
26-Sep-07 16969.45 17073.87 16887.07 16921.39
27-Sep-07 17059.61 17188.4 17018.56 17150.56
28-Sep-07 17152.31 17361.47 17152.31 17291.1
Analysis
In this month market was gave good return to the investors. Sensex again reached near to its
highest point on September 7. This month market movement was above 2000 points. In this
month market crossed 16000 points on 19th Sep. and 17000 on 27th Sep. Points. After 18th
Sep. market continuously up rally by each day. Sep. 2007, market created its all time high
17361 points on last trading day of the month 28th Sep. and all time low 15323 points on very
first trading day of the month.
Reasons
 Sensex gained 100 points as the power counters like NTPC and BHEL moved up
before the Power Grid IPO\
 Auto moved up just a per cent while bankex and capital goods have grown by two per
cent each. IT slipped again by three per cent as the Rupee has become stronger.
For the month of Oct 2007

1-Oct-07 17356.99 17425.34 17144.58 17328.62
3-Oct-07 17467.41 17953.07 17288.41 17847.04
4-Oct-07 17799.63 17890.49 17494.7 17777.14
5-Oct-07 17831.68 17979.18 17708.8 17773.36
8-Oct-07 17901.94 17982.59 17322.14 17491.39
9-Oct-07 17402.24 18327.42 17287.19 18280.24
10-Oct-07 18473.43 18703.67 18436.99 18658.25
11-Oct-07 18696.62 18832.65 18536.97 18814.07
12-Oct-07 18794.63 18844.62 18336 18419.04
39
15-Oct-07 18525.61 19095.75 18525.61 19058.67

16-Oct-07 19102.93 19174.45 18777.75 19051.86
17-Oct-07 18037.9 18841.29 17307.9 18715.82
18-Oct-07 18827.46 19198.66 17771.16 17998.39
19-Oct-07 18031.77 18031.77 17226.18 17559.98
22-Oct-07 17259.65 17704.83 17171.45 17613.99
23-Oct-07 17910.3 18542.41 17910.3 18492.84
24-Oct-07 18727.9 18832.49 18317.17 18512.91
25-Oct-07 18519.23 18900.1 18459.51 18770.89
26-Oct-07 18823.66 19276.45 18629.53 19243.17
29-Oct-07 19621.39 20024.87 19621.39 19977.67
30-Oct-07 20103.44 20238.16 19694.85 19783.51
31-Oct-07 19827.4 19984.13 19735.21 19837.99
Analysis
In October, Sensex was all time high in history. Sensex crossed 18,000, 19000, and 20000 on
9th, 15th and 29th October respectively. In this month market movement was 3000 points.
Market created its all time low at 17,171 ON 22nd Oct. and all time high 20,238 on 30th Oct.
This month market closed at 19837 points on 31st Oct. which was indicated gained of 2000
points than the last month.
Reasons
 Diwali festival
 Second quarter result
 Buying presser of FIIs
40

1-Nov-07 20130.23 20204.21 19634.47 19724.35
2-Nov-07 19364.61 20025.63 19255.77 19976.23
5-Nov-07 20009.35 20009.35 19502.45 19590.78
6-Nov-07 19689.79 19919.34 19337.85 19400.67
7-Nov-07 19552.53 19678.5 19249.47 19289.83
8-Nov-07 19110.4 19209.91 18917.4 19058.93
9-Nov-07 19282.7 19329.57 18737.22 18907.6
12-Nov-07 18640.52 18815.11 18333.21 18737.27
13-Nov-07 18681.1 19210.48 18636.21 19035.48
14-Nov-07 19336.96 19987.71 19336.96 19929.06
15-Nov-07 19947.72 19967.08 19723.2 19784.89
16-Nov-07 19603.09 19838.03 19472.51 19698.36
19-Nov-07 19895.49 19971.44 19583.97 19633.36
20-Nov-07 19510.94 19714.22 19196.42 19280.8
21-Nov-07 19197.57 19218.88 18515.3 18602.62
22-Nov-07 18724.11 18744.55 18182.83 18526.32
23-Nov-07 18737.22 18910.46 18548.06 18852.87
26-Nov-07 19171.25 19360.23 19137.66 19247.54
27-Nov-07 19128.86 19211.58 19019.33 19127.73
28-Nov-07 19316.76 19316.76 18884.2 18938.87
29-Nov-07 19290.67 19297.01 18930.31 19003.26
30-Nov-07 19136.12 19424.99 19006.89 19363.19
Analysis
In this month on first day market was opened at 300 points up than the last month of the day.
On that day market created all time high 20,204 points. Market movement was 2000 points.
First fortnight market fell 1500 points than is was recovered day to day and closed at 19,363
on 30th Nov. Over all this month market was stable.
Reasons
 RBI hiked the CRR by 50 basis points to 7.5 per cent.

41
 On first fortnight major foreign market indices was fell around 4 per cent
 FIIs roll as medium phase
 High FIIs buying presser
3-Dec-07 19547.09 19619.44 19446.68 19603.41
4-Dec-07 19707.59 19707.86 19482.34 19529.5
5-Dec-07 19628.85 19790.92 19560.68 19738.07
6-Dec-07 20018.17 20064.31 19716.57 19795.87
7-Dec-07 20063.5 20094.56 19706.43 19966
10-Dec-07 20074.92 20095.69 19834.01 19930.68
11-Dec-07 20049.35 20333.06 20019.34 20290.89
12-Dec-07 20197.44 20419.11 20045.42 20375.87
13-Dec-07 20498.11 20498.11 20065.63 20104.39
14-Dec-07 20108.09 20171.57 19936.49 20030.83
17-Dec-07 20032.67 20032.67 19177.19 19261.35
18-Dec-07 19339.14 19375.07 19009.35 19079.64
19-Dec-07 19255.39 19397.76 18886.4 19091.96
20-Dec-07 19210.22 19291.14 19097.7 19162.57
24-Dec-07 19308.2 19879 19308.2 19854.12
26-Dec-07 19940.96 20211.47 19896.61 20192.52
27-Dec-07 20301.05 20323.76 20159.73 20216.72
28-Dec-07 20158.12 20259.45 20022.88 20206.95
31-Dec-07 20323.28 20484.28 20239.63 20286.99

42
Analysis
In this month market was bouncing again. In first fortnight market was in an unbeaten mood.
Sensex crossed 20,000 points after one month. In this month market made all time low at
18,886 points on 19th Dec. and peak points at 20,498 on 13th Dec. On last day of the market
closed at 20,286 points.
Reason
 Crude oil has already surpassed USD 100 per barrel.

 No more impact of foreign market
 FIIs medium buying and selling

2-Jan-08 20393.1 20529.48 20077.4 20465.3
3-Jan-08 20383.03 20519.7 20293.87 20345.2
4-Jan-08 20367.94 20762.8 20367.94 20686.89
7-Jan-08 20637.21 20861.83 20438.19 20812.65
8-Jan-08 20970.07 21077.53 20696.6 20873.33
9-Jan-08 20903 21113.13 20701.49 20869.78
10-Jan-08 20930.28 21206.77 20530.07 20582.08
11-Jan-08 20702.94 20894.79 20505.81 20827.45
14-Jan-08 20918.23 20959.22 20661.9 20728.05
15-Jan-08 20836.47 20872.93 20203.63 20251.09
16-Jan-08 20079.89 20079.89 19513.25 19868.11
17-Jan-08 19972.75 20026.12 19643.76 19700.82
18-Jan-08 19579.61 19715.78 18930.42 19013.7
21-Jan-08 18919.57 18919.57 16951.5 17605.35
22-Jan-08 16884.09 17068.57 15332.42 16729.94
23-Jan-08 17520.02 17997.11 16951.03 17594.07
24-Jan-08 17920.98 18185.1 17070.05 17221.74
25-Jan-08 17504 18406.25 17504 18361.66
28-Jan-08 18011.89 18213.21 17443.29 18152.78
43
29-Jan-08 18346.49 18491.06 17927.92 18091.94

30-Jan-08 18120.22 18129.18 17683.51 17758.64
31-Jan-08 17810.13 18008.71 17417.63 17648.71
Analysis
In the month of January Sensex open at 20,393 and make high of 20,959 on 14th Jan and low
of 15,332. In third week the market was quite unusual volatile. The sharp and rapid rise in
small and mid cap shares. The difference between opening and closing was -5627. The main
reason behind this fall was subprime in the USA and The impact of these market
development were so severe that on January 15 and 16 Sensex lost almost 860 points on
negative global cues. The effect of subprime was more palpably evident on global market and
across Asia. The whole of January 2008 was dedicated to concerns of
US recession and meltdown in the world markets.
Reasons
 The main reason behind the fall was subprime in the USA
 In spite of good result of IT company market not sustain on top.
 Poor listing of Reliance power.

1-Feb-08 17820.67 18312.4 17534.96 18242.58
4-Feb-08 18496.03 18895.34 18447.25 18660.32
5-Feb-08 18592.58 18729.83 18509.54 18663.16
6-Feb-08 18247.03 18274.15 17936.01 18139.49
7-Feb-08 18198.68 18198.68 17492.28 17526.93
8-Feb-08 17610.07 17688.73 17203.06 17464.89
11-Feb-08 17427.34 17427.34 16457.74 16630.91
12-Feb-08 16812.63 16966.72 16565.48 16608.01
13-Feb-08 16816.94 17141.06 16725.68 16949.14
14-Feb-08 17265.19 17836.64 17265.19 17766.63

44
15-Feb-08 17541.17 18142.92 17445.05 18115.25
19-Feb-08 18215.26 18314.1 18018.48 18075.66
20-Feb-08 17991.29 17991.29 17505.56 17617.6
21-Feb-08 17825.22 17887.21 17482.31 17734.68
22-Feb-08 17503.04 17526.8 17347.26 17349.07
25-Feb-08 17523.81 17674.06 17137.99 17650.57
26-Feb-08 17799.56 17860.1 17678.74 17806.19
27-Feb-08 17983.42 18137.28 17770.65 17825.99
28-Feb-08 17810.52 17921.51 17690.16 17824.48
29-Feb-08 17779.54 17779.54 17258.2 17578.72
Analysis
Sensex opened at 17,820 on 1st February and make high of 18,895 on 4th February.With
making a low of 16,457 on 11 February Sensex close at 17,578 at the end of month.
Reasons
 The blow of Industrial growth data that its only 7.6 per cent compare to last year 13.6
per cent its 43 per cent beaten.
 Poor listing of Reliance power on 11 February drag Sensex to its lowest point. Its
listed on BSE at `548 and fall `131 in just 3 hour. And next make the low of `345.
 All world market crashing down. The worst hit was Hong Kong’s Hang Seng which
dropped 2110 point, to reach 22,921
 Net selling’s from MFs FIIs

45
3-Mar-08 17227.56 17227.56 16634.63 16677.88
4-Mar-08 16742.2 16754.06 16164.57 16339.89
5-Mar-08 16328.91 16595.64 16253.02 16542.08
7-Mar-08 16211.96 16211.96 15689.92 15975.52
10-Mar-08 15684.24 15998.33 15362.17 15923.72
11-Mar-08 15778.27 16168.13 15739.04 16123.15
12-Mar-08 16541.14 16683.37 16064.09 16127.98
13-Mar-08 15873.28 15873.28 15228.99 15357.35
14-Mar-08 15467.39 15798.42 15331.35 15760.52
17-Mar-08 15326.93 15326.93 14739.72 14809.49
18-Mar-08 14725.68 15164.73 14677.24 14833.46
19-Mar-08 15325.79 15465.81 14930.08 14994.83
24-Mar-08 15093.77 15351.31 15056.09 15289.4
25-Mar-08 15612.61 16262.38 15612.61 16217.49
26-Mar-08 16270.12 16309.88 16009.87 16086.83
27-Mar-08 15950.29 16111.44 15869.09 16015.56
28-Mar-08 16100.26 16452.08 15884.45 16371.29
31-Mar-08 16226.66 16226.66 15563.15 15644.44
Analysis
In the month of March Sensex open at 17,227 and that point only was the high for the month
of March. Sensex was moving on expected lines. The low was 14,677 which was made on
18th March. On the 25th march Sensex shown the rally of 928 in upward direction. And close
in the negative sentiment after recovering 967 points from low at 15,644.
46
Reasons
 First week of March after P.Chidambram unveiled the pro-people Budget of

the UPA government.
 Poor Index of industrial production (IIP) numbers bruised the market on 12th march
 Finance minister announced `60,000 crores agriculture loan waiver.
 The FIIs inflow till march 25th was `889 crore and alone FIIs have done purchasing of
`1345 crores that was resulted in rally of 928 points on 25th March.
 Global markets were in positive direction including US at the end of the month.

1-Apr-08 15771.72 15834.05 15297.96 15626.62
2-Apr-08 16023.3 16236.7 15719.47 15750.4
3-Apr-08 15805.63 16002.73 15699.21 15832.55
4-Apr-08 15896.09 15896.09 15303.04 15343.12
7-Apr-08 15390.15 15851.88 15321.56 15757.08
8-Apr-08 15770.16 15770.4 15479.42 15587.62
9-Apr-08 15512.7 15829.59 15464.72 15790.51
10-Apr-08 15754.87 15953.54 15655.2 15695.1
11-Apr-08 15840.56 15957.24 15673.67 15807.64
15-Apr-08 15694.41 16249.46 15573.03 16153.66
16-Apr-08 16288.76 16413.8 16198.56 16244.19
17-Apr-08 16456.04 16570.57 16397.17 16481.2
21-Apr-08 16611.41 16778.59 16611.41 16739.33
22-Apr-08 16686.55 16853.96 16597.53 16783.87
23-Apr-08 16823.99 16871.27 16589.45 16698.04

24-Apr-08 16796.26 16844.02 16668.6 16721.08
25-Apr-08 16781.97 17150.92 16781.97 17125.98
47
28-Apr-08 17251.56 17271.56 16978.89 17015.96

29-Apr-08 17050.87 17424.94 17011.6 17378.46
30-Apr-08 17479.01 17480.74 17241.88 17287.31
Analysis
In month April Sensex start with opening of 15,771 with gap up opening of 127 point .
Sensex make high of 17,480 on 30th April and make low of 15,297 on the first itself and
close at 17,287. The Indian markets now seem to be responding more on the basis of the pros
and corns of Indian economy rather than being lead by global cues.
Reasons
 On 18th April Citi group had announced the loss of $5.1 billion although market open
in plus 258 points.
 On 23rd April Good result given by Indian Inc in the third quarter. RIL the biggest
corporate player had registered profit of `3912 crore, It was 24 per cent more than last
year’s Q4 result.
 Internationally it seems that markets all over had discounted the fear of US economic
slowdown and financial crisis. All the global indices showing appreciation from the
past levels.
48

2-May-08 17560.15 17621.24 17445.93 17600.12
5-May-08 17687 17735.7 17457.27 17490.9
6-May-08 17441.41 17502.15 17237.68 17373.01
7-May-08 17404.15 17413.81 17229.98 17339.31
8-May-08 17212.61 17212.61 17038.03 17080.65
9-May-08 17020.79 17125.95 16678.94 16737.07
12-May-08 16641.45 16897.36 16546.55 16860.9
13-May-08 17008.03 17085.63 16697.47 16752.86
14-May-08 16691.3 17014.94 16626.35 16978.35
15-May-08 17084.89 17366.19 17079.94 17353.54
16-May-08 17476.41 17497.36 17315.52 17434.94
20-May-08 17366.05 17367.13 17136.26 17230.18
21-May-08 17065.61 17293.34 17041.63 17243.16
22-May-08 17104.59 17104.59 16863.38 16907.11
23-May-08 16958.8 17054.34 16626.11 16649.64
26-May-08 16468.32 16498.24 16300.88 16348.5
27-May-08 16454.75 16506.35 16237.92 16275.59
28-May-08 16358.62 16563.3 16217.78 16525.37
29-May-08 16666.03 16666.03 16196.02 16316.26
30-May-08 16454.03 16540.49 16314.99 16415.57
Analysis
Month of May started with 17,560. Its gap up opening of 273 points. On 5th may Sensex
make high of 17,735 and low of 16,196 on the 29th May. The closing of this month was
settled on 16,415.Market close negatively in the month of May. The difference was 1145
point between opening and closing
49
Reasons
 On 19th May crude oil touch the level of $127 per barrel. The historic high value.
 Inflation increased more than 8 per cent. After September 2004 its highest level.
 The debacle of UPA government in Karnataka assembly election.

2-Jun-08 16591.46 16632.72 15991.21 16063.18
3-Jun-08 15851.72 15985.4 15709.51 15962.56
4-Jun-08 15992.9 15992.9 15442.34 15514.79
5-Jun-08 15479.65 15814.8 15314.02 15769.72
6-Jun-08 15914.41 15970.7 15526.5 15572.18
9-Jun-08 15115.97 15202.74 14846.18 15066.1
10-Jun-08 14979.96 15088.03 14645.31 14889.25
11-Jun-08 15018.68 15225.81 15009.48 15185.32
12-Jun-08 14957.53 15270.85 14748.07 15250.2
13-Jun-08 15327.1 15337.1 15135.81 15189.62
16-Jun-08 15400.57 15553.37 15340.34 15395.82
17-Jun-08 15388.36 15732.75 15358.75 15696.9
18-Jun-08 15744.21 15789.62 15390.22 15422.31
19-Jun-08 15250.47 15259.36 15051.66 15087.99
20-Jun-08 15194.73 15194.73 14520.88 14571.29
23-Jun-08 14423.05 14509.69 14163.45 14293.32
24-Jun-08 14290.16 14432.9 13991.31 14106.58
25-Jun-08 13776.21 14247.16 13736.01 14220.07
26-Jun-08 14300.72 14449.81 14196.68 14421.82
27-Jun-08 14127.76 14127.76 13760.78 13802.22
30-Jun-08 13791.02 13872.06 13405.54 13461.6
50
Analysis
In the month of june Sensex opened at 16,591 make high of 16,632 on the same day. With
making low of 13,405 on last day Sensex close at 13,461.
Reasons
 Major factor domestic and international are crude oil, inflation and intrest rate.
 The news of Ranbaxy’s acquisition with Japanese based firm Daiichi Sankyo. This
acquired majority of the voting capital of Ranbaxy.
 Payment of advance tax higher compare to last quarter.

1-Jul-08 13480.02 13613.01 12904.09 12961.68
2-Jul-08 12948.05 13711.01 12822.75 13664.62
3-Jul-08 13458.3 13458.3 12934.92 13094.11
4-Jul-08 13097.01 13508.38 13031.43 13454
7-Jul-08 13561.92 13793.39 13476.29 13525.99
8-Jul-08 13226.04 13451.67 13049.96 13349.65
9-Jul-08 13581.41 13998.48 13581.41 13964.26
10-Jul-08 13851.59 14046.59 13763.94 13926.24
11-Jul-08 14063.45 14063.45 13351.34 13469.85
14-Jul-08 13333.03 13557.21 13270.4 13330.51
15-Jul-08 13067.08 13067.08 12607.62 12676.19
16-Jul-08 12759.76 12935.25 12514.99 12575.8
17-Jul-08 12909.57 13150.35 12843.79 13111.85
18-Jul-08 13234.53 13684.27 13093.34 13635.4
21-Jul-08 13782.13 13878.88 13581.19 13850.04
22-Jul-08 13837.64 14206.13 13798.18 14104.2
23-Jul-08 14568.22 14979.9 14568.22 14942.28
24-Jul-08 15082.37 15130.09 14608.05 14777.01
25-Jul-08 14451.95 14484.39 14210.63 14274.94
28-Jul-08 14267.03 14421.61 14219.38 14349.11
29-Jul-08 14085.53 14153.12 13727.14 13791.54
51
30-Jul-08 14007.32 14322.67 14002.19 14287.21

31-Jul-08 14359.48 14369.42 14161.76 14355.75
Analysis
The month of July start with opening at 13480 with nominal plus moment and make the peak
of 14,979 on 16 July. 12,514 was the low and closing was 14,355
Reasons
 Devastating crude price in the international market.
 Unending inflation spiral.
 Threat of fall of UPA government over the nuclear issue.

1-Aug-08 14064.26 14682.33 14032.87 14656.69
4-Aug-08 14594.64 14725.94 14503.51 14577.87
5-Aug-08 14562.68 14986.63 14529.21 14961.07
6-Aug-08 15263.65 15422.82 15035.6 15073.54
7-Aug-08 15031.86 15280.06 14992.97 15117.25
8-Aug-08 15036.57 15228.82 14888.12 15167.82
11-Aug-08 15430.31 15520.71 15367.97 15503.92
12-Aug-08 15577.2 15579.78 15124.91 15212.13
13-Aug-08 15030.21 15272.56 15013.06 15093.12
14-Aug-08 15017.68 15033.28 14686.66 14724.18
18-Aug-08 14681.14 14824.92 14600.65 14645.66
19-Aug-08 14517.76 14604.11 14368.72 14543.73
20-Aug-08 14610.57 14746.2 14584.03 14678.23
21-Aug-08 14646.98 14646.98 14201.18 14243.73
22-Aug-08 14153.39 14428.52 14136.86 14401.49

52
25-Aug-08 14643.37 14672.69 14416.2 14450.35
26-Aug-08 14338.27 14495.27 14286.38 14482.22
27-Aug-08 14563.1 14563.1 14261.69 14296.79
28-Aug-08 14289.97 14347.19 14002.43 14048.34
29-Aug-08 14279.02 14586.16 14279.02 14564.53
Analysis
In the month of august Sensex opened at 14,064 and make high of 15,579 on 12th August.
With making low of 14,002 on 28th August and close at 14,564 on last day. Till th 12th
august market was gaining, but as the IIP numbers declared market crashed 291 points. Till
the 11 August there was not a single day for crash.
Reasons
 The vote of confidence in the Lok Sabha turned out in bull rally.
 Decrease of crude oil prices.
 Poor IIP numbers.
 Negative closing from world market (South Korea ,UK , US ,Germany, Japan,
Singapore)
53

1-Sep-08 14412.99 14547.41 14281.1 14498.51
2-Sep-08 14609.44 15106.15 14543.21 15049.86
4-Sep-08 14895.85 14994.15 14766.01 14899.1
5-Sep-08 14569.01 14601.39 14438.59 14483.83
8-Sep-08 15038.06 15107.01 14917.06 14944.97
9-Sep-08 14814.33 14998.32 14714.92 14900.76
10-Sep-08 14717.53 14866.32 14609.83 14662.61
11-Sep-08 14557.33 14557.33 14265.38 14324.29
12-Sep-08 14433.2 14433.2 13933.87 14000.81
15-Sep-08 13592.05 13592.05 13150.81 13531.27
16-Sep-08 13051.73 13556.03 13051.73 13518.8
17-Sep-08 13620.74 13620.74 13127.96 13262.9
18-Sep-08 12712.82 13346.79 12558.14 13315.6

19-Sep-08 13763.83 14097.44 13674.96 14042.32
22-Sep-08 14215.33 14215.33 13917.48 13994.96
23-Sep-08 13721.42 13978.26 13543.47 13570.31
24-Sep-08 13636.71 13840.81 13592.79 13692.52
25-Sep-08 13716.88 13716.88 13430.68 13547.18
26-Sep-08 13486.2 13486.2 13054.42 13102.18
29-Sep-08 13109.96 13109.96 12402.84 12595.75
30-Sep-08 12178.18 12995.2 12153.55 12860.43
Analysis
September opening was 14,412 and make high of 15,107 on 8th September. Low of this
month was 12,153 on last day of the month and closed at 12,860. Sensex had lost 282 points
till 10 September. In this month market was so much volatile. Due to nod of NSG on Nuclear
deal and decline in crude price make the Sensex to touch 15,107. Bankruptcy of heavy
weights and 154 year old bank of US make the Sensex crashed very rapidly and Sensex toch
the bottom of 12,153
54
Reasons
 Decline in crude price.
 Nod of NSG towards Nuclear deal.
 Bankruptcy of Lehman Brothers, Merrill lynch, goldman sachs, Morgan

Stanley.

1-Oct-08 13006.72 13203.86 12697.3 13055.67
3-Oct-08 12851.47 13001.19 12472.61 12526.32
6-Oct-08 12284.49 12284.49 11732.97 11801.7
7-Oct-08 12068.11 12181.08 11501.85 11695.24
8-Oct-08 11316.24 11405.73 10740.76 11328.36
10-Oct-08 10632.27 10904.13 10239.76 10527.85
13-Oct-08 10817.68 11361.32 10817.68 11309.09
14-Oct-08 11781.43 11870.22 11410.49 11483.4
15-Oct-08 11245.27 11257.15 10760.33 10809.12
16-Oct-08 10221.53 10787.2 10017.8 10581.49
17-Oct-08 10763.34 10786.93 9911.32 9975.35
20-Oct-08 10160.47 10538.05 10023.28 10223.09
21-Oct-08 10428.11 10750.2 10250.23 10683.39
22-Oct-08 10455.23 10484.85 10128.22 10169.9
23-Oct-08 9683.26 10260.55 9682.4 9771.7
24-Oct-08 9497.48 9570.71 8566.82 8701.07
27-Oct-08 8588.86 8739.48 7697.39 8509.56
28-Oct-08 9056.97 9056.97 8909.34 9008.08
29-Oct-08 9297.76 9297.76 8894.34 9044.51
31-Oct-08 9361.66 9870.42 9361.66 9788.06

55
Analysis
Sensex opened at 13,006 make high of 13,203 on opening day and make low of 7,697 on 27th
October. And close at 9788. This month all markets decline sharply. RBI had cut the CRR
and REPO rate but that not affect the market. The biggest factor is only that the financial
crisis in US and European country. Global crisis lead the all index make crashed.
Reasons
 Financial crisis in US and European country.
 Market recovered because of cut in CRR and repos and PM’s assurance to the
corporate world.

3-Nov-08 10209.37 10373.17 10112.66 10337.68
4-Nov-08 10304.57 10668.48 10116.22 10631.12
5-Nov-08 10931.17 10945.41 10051.52 10120.01
6-Nov-08 9755.03 10109.45 9635.22 9734.22
7-Nov-08 9631.59 10065.37 9631.59 9964.29
10-Nov-08 10154.56 10570.58 10095.9 10536.16
11-Nov-08 10386.45 10397.36 9800.67 9839.69
12-Nov-08 9683.75 9928.6 9376.73 9536.33
14-Nov-08 9784.85 9826.25 9267.49 9385.42
17-Nov-08 9396.93 9424.25 8956.68 9291.01
18-Nov-08 9084.12 9169.05 8871.71 8937.2
19-Nov-08 8970.67 9236.27 8726.8 8773.78
20-Nov-08 8400.88 8540.46 8316.39 8451.01
21-Nov-08 8481.02 8988.03 8442.31 8915.21
24-Nov-08 8840.53 9042.02 8701.93 8903.12

56
25-Nov-08 9170.28 9182.8 8649.4 8695.53
26-Nov-08 8806.02 9061.72 8658.53 9026.72
28-Nov-08 8889.18 9157.62 8889.18 9092.72
Analysis
In the month of November Sensex opened at 10,209 its gap up high opening Sensex open at
plus 421 point. Sensex make the high of 10,945 on 5th November. And than onceagain sleep
to 8316 on 20th November.And closed at 9092.
Reasons
 Sensex gained 1157 point till 5th November, because Commerce and Industry
Minister Kamal Nath announced after trading hours on 3 November that the
government will further ease foreign investment rules, including those relating
to defence production.
 After the announcement of election of Barak Obama in US, Sensex fall down
very sharply because of heavy selling of FIIs.
 On account of global slow down
 Terrorist Attack on Mumbai Taj Hotel.
 US had official accept the recession in their economy.

57

1-Dec-08 9162.94 9326.68 8803.34 8839.87
2-Dec-08 8535.83 8785.04 8467.43 8739.24
3-Dec-08 8851.22 8854.81 8601.41 8747.43
4-Dec-08 8779.02 9245.06 8726.71 9229.75
5-Dec-08 9172.58 9340.69 8914.38 8965.2
8-Dec-08 9276.89 9432.11 9095.7 9162.62
10-Dec-08 9349.53 9678.7 9280.16 9654.9
11-Dec-08 9679.32 9746.01 9441.97 9645.46
12-Dec-08 9370.87 9745.51 9281.89 9690.07
15-Dec-08 9821.85 9948.33 9749.29 9832.39
16-Dec-08 9794.48 10009.21 9790.31 9976.98
17-Dec-08 10073.1 10073.1 9682.91 9715.29
18-Dec-08 9710.2 10110.34 9633.04 10076.43
19-Dec-08 10001.33 10188.54 9987.42 10099.91
22-Dec-08 10102.42 10173.34 9895.55 9928.35
23-Dec-08 9813.2 9838.38 9643.56 9686.75

24-Dec-08 9626.07 9653.42 9502.53 9568.72
26-Dec-08 9655.07 9706.38 9294.98 9328.92
29-Dec-08 9318.86 9550.4 9162.66 9533.52
30-Dec-08 9625.13 9785.04 9494.7 9716.16
31-Dec-08 9806.64 9825.9 9587.92 9647.31
Analysis
Sensex opened at 9,162 and make high of 10,188 and make the low of 8,467. The closing
was settled at 9647. Sensex fall in first week because of their decline in export. Sensex cross
10,000 because of stimulus package announced by government on December 16th.
58
Reasons
 Sharp decline of 12.1per cent in the export.
 Stimulus Package Propels Market Past 10,000 Mark.
 US government had announced $1 trillion bailout package.
2-Jan-09 9973.06 10070.28 9863.86 9958.22
5-Jan-09 10124.92 10306.17 10069.11 10275.6
6-Jan-09 10241.51 10392.12 10150.68 10335.93
7-Jan-09 10424.96 10469.72 9510.15 9586.88
9-Jan-09 9434.85 9630.4 9250.82 9406.47
12-Jan-09 9306.74 9327.3 9024.45 9110.05
13-Jan-09 9042.36 9261 8992.92 9071.36
14-Jan-09 9223.16 9412.97 9071.36 9370.49
15-Jan-09 9000.62 9123.78 8946.62 9046.74
16-Jan-09 9125.65 9342.47 9125.65 9323.59
19-Jan-09 9365.04 9409.51 9273.47 9329.57
20-Jan-09 9159.76 9159.76 9033.55 9100.55
21-Jan-09 8900.78 9051.31 8734.93 8779.17
22-Jan-09 8905.97 8927.69 8699.32 8813.84
23-Jan-09 8804.15 8858.84 8631.6 8674.35
27-Jan-09 8803.07 9021.97 8791.58 9004.08
28-Jan-09 9077.65 9270.75 9053.8 9257.47
29-Jan-09 9340.59 9379.68 9164.96 9236.28
30-Jan-09 9111.12 9438.31 9088.15 9424.24

59
Analysis
In January 2009, market opened on 300 points at 2nd Jan. than the last year last trading
day. In this month market was volatile 1600 to 2000 points. In first fortnight opened robust at
9973 points on January 1st and went up to 10469 points on January 7, highest points in last 15
days. But on that day market lost 749 points and then went on declining to tough their lowest
level of 8992 points on January 13. In second fortnight there were good sentiments after 1500
points crashed in first fortnight. In last week market was bullish and gave close at 9424
points.
Reasons
 Satyam Scandal (Fraud)

 Major foreign markets were down 1 to 5 per cent
 RBI announced its credit policy on Jan. 27th & full stop on decline
2-Feb-09 9363.58 9363.58 9048.97 9066.7
3-Feb-09 9128.99 9302.25 9040.56 9149.3
4-Feb-09 9226.2 9338.21 9164.16 9201.85
5-Feb-09 9241.56 9247.09 9017.08 9090.88
6-Feb-09 9161.49 9321.38 9160.83 9300.86
9-Feb-09 9359 9601.56 9329.3 9583.89
10-Feb-09 9589.95 9724.87 9510.63 9647.47
11-Feb-09 9462.14 9648.39 9459.59 9618.54
12-Feb-09 9559.03 9578.99 9445.54 9465.83
13-Feb-09 9540.6 9695.59 9540.6 9634.74
16-Feb-09 9637.04 9637.04 9279.1 9305.45

60
17-Feb-09 9213.4 9213.4 8994.34 9035
18-Feb-09 8939.38 9112.99 8929.62 9015.18
19-Feb-09 9034.9 9111.27 8977.8 9042.63
20-Feb-09 8943.78 8943.78 8762.58 8843.21
24-Feb-09 8707.35 8856.52 8619.22 8822.06
25-Feb-09 8913.44 8995.04 8880.15 8902.56
26-Feb-09 8905.56 8998.31 8788.94 8954.86
27-Feb-09 8944.11 8944.11 8728.66 8891.61
Analysis
Market opened bearish on first day than the last trading day of last month. In this
month market movement was near about 600 to 700 points. Sensex touched a last fortnight
peak on February 10 at 9724 points gaining 313 points last 15 days. In second fortnight the
market was on a continuous downslide on global cues and failed to show any revival
indicators. And the market closed at 8891 points on 27th Feb.
Reasons
 Central Statistical Organization release advance estimates of the Indian GDP for
2008-09 which showed the county’s growth intact at 7.1 per cent.
 FII positive purchased of `172 cr. during first 15 days.
 Budget had negative impact on the market on last fortnight.

61
2-Mar-09 8762.88 8762.88 8563.52 8607.08
3-Mar-09 8583.06 8635.2 8393.05 8427.29
4-Mar-09 8473.25 8501.46 8373.24 8446.49
5-Mar-09 8535.03 8535.03 8167.75 8197.92
6-Mar-09 8103.75 8347.1 8047.17 8325.82
9-Mar-09 8259.22 8259.22 8110.1 8160.4
12-Mar-09 8274.78 8439.26 8274.78 8343.75
13-Mar-09 8480.74 8793.21 8480.74 8756.61
16-Mar-09 8793.89 8955.73 8697.46 8943.54
17-Mar-09 8942.01 9024.12 8801.79 8863.82
18-Mar-09 8956.3 9120.4 8951.32 8976.68
19-Mar-09 9023.04 9086.77 8900.39 9001.75
20-Mar-09 8951.34 8999.98 8867.13 8966.68
23-Mar-09 9040.3 9454.69 9040.3 9424.02
24-Mar-09 9549.52 9699 9402.64 9471.04
25-Mar-09 9442.3 9704.69 9430.45 9667.9
26-Mar-09 9739.93 10061.36 9739.93 10003.1
27-Mar-09 10036.8 10127.09 9913.4 10048.49
30-Mar-09 9902.35 9902.35 9521.76 9568.14
31-Mar-09 9633.21 9826.22 9547.21 9708.5
Analysis
In this march market was on recovery mood. In this month market crossed 10000
points. In first fortnight market was bearish situation. Market made its all time high at 10127
points on 27th march and all time low at 8047 on 6th march. Last fortnight market was
62
continuously bullish trend. On 31st march market closed at 9708 points which was 1000 high
than the last month closing.
Reasons
 FII sold shares worth of 2696 Cr. and they were not a single purchased during first
fortnight
 Major foreign indices was declined in first fortnight (Dow 8.8%, Hang seng 8.79%
etc)
 Major foreign indices was gained in second fortnight (Dow 4.9%, UK FTSE 4.04%)
 FII come back toward the market with an aggregate purchased of `876 Cr.
1-Apr-09 9745.77 9921.96 9546.29 9901.99
2-Apr-09 10107.25 10431.98 10107.25 10348.83
6-Apr-09 10521.78 10654.89 10410.44 10534.87
8-Apr-09 10283.58 10778.11 10173 10742.34
9-Apr-09 10876.15 10929.33 10655.96 10803.86
13-Apr-09 10916.43 11069.54 10800.84 10967.22
15-Apr-09 10805.14 11337.75 10719.18 11284.73
16-Apr-09 11358.06 11362.31 10900.47 10947.4
17-Apr-09 11067.71 11339.47 10946.25 11023.09
20-Apr-09 11065.1 11209.66 10863.28 10979.5
21-Apr-09 10765.39 11068.82 10764.08 10898.11
22-Apr-09 10968.6 11036.24 10715.66 10817.54
23-Apr-09 10841.57 11200.86 10758.97 11134.99

63
24-Apr-09 11149.47 11362.88 11070.33 11329.05
27-Apr-09 11237.42 11492.1 11176.55 11371.85
28-Apr-09 11371.34 11371.34 10961.76 11001.75
29-Apr-09 11091.56 11430.25 11091.56 11403.25
Analysis
April 2009
In April market was continuous movement on 1st April related last month. Over all this month
market was recovery mood. In this month market movement was above 2000 points. In first
fortnight market crossed 10000 points and created its all time high for last two months. This
month was profitable to the investors. In second fortnight market opened at 11358 points all
time high from last 5 months. And market was continuously bullish after that. This month
market all time low made on very first day of the month at 9546 points and all time high at
11492 points on 27th April. On last market gave closed at 11403 points on last trading day
which was more than 1500 points of March 2009 closing.
Reasons
 All foreign market were positive
 Starting of financial year investors revised their portfolio so that.
 FIIs comeback with positive purchased `2690 cr.
4-May-09 11635.24 12160.32 11635.24 12134.75
5-May-09 12159.74 12197.88 11985.88 12131.08
6-May-09 12100.69 12272.04 11899.41 11952.75
7-May-09 12064.51 12143.95 11981.13 12116.94
8-May-09 12092.97 12180.07 11765.06 11876.43

64
11-May-09 11997.37 12026.6 11621.3 11682.99
12-May-09 11629.97 12194.63 11625.39 12158.03
13-May-09 12201.93 12256.43 11934.44 12019.65
14-May-09 11774.04 11935.86 11695.52 11872.91
15-May-09 11948.7 12218.98 11948.7 12173.42
18-May-09 13479.39 14284.21 13479.39 14284.21
19-May-09 14757.82 14930.54 13840.83 14302.03
20-May-09 14230.73 14405.51 13976.49 14060.66
21-May-09 14043.38 14089.51 13704.43 13736.54
22-May-09 13663.54 13936.93 13611.3 13887.15
25-May-09 13999.44 14027.6 13819.78 13913.22
26-May-09 13983.26 13991.46 13524.93 13589.23
27-May-09 13851.85 14122.78 13848.15 14109.64
28-May-09 14139.14 14376.34 14080.98 14296.01
29-May-09 14384.76 14726.6 14384.76 14625.25
Analysis
May 2009 was very good recovery. In this month market was crossed new level
14,000 points all time high of last eight months. In this month market movement was above
3000 points. Market creates its all-time low at 11,621 points on 11th May and all time high on
last trading day 29th May at 14,726 points. Market gave closed on that day at 14,625 points
which was more than 3000 points than the last month.
Reasons
 Positive effect of Election result
 FIIs buying presser
 Positive foreign market
65

1-Jun-09 14790.89 14906.81 14658.01 14840.63
2-Jun-09 14942.21 14994.22 14608.23 14874.91
3-Jun-09 14902.62 15045.88 14734.9 14870.9
4-Jun-09 14755.08 15026.03 14601.91 15008.68
5-Jun-09 15040.24 15257.3 14994.05 15103.55
8-Jun-09 15153.21 15184.87 14604.23 14665.92
9-Jun-09 14618.98 15159.27 14526.69 15127
10-Jun-09 15168.18 15580.81 15168.18 15466.81
11-Jun-09 15517.36 15568.74 15242.19 15411.47
12-Jun-09 15446.82 15600.3 15174.28 15237.94
15-Jun-09 15195.83 15261.03 14808.09 14875.52
16-Jun-09 14788.27 15022.19 14621.97 14957.91
17-Jun-09 14978.5 14995.66 14447.93 14522.84
18-Jun-09 14503.05 14630.73 14188.25 14265.53
19-Jun-09 14321.98 14559.08 14179.77 14521.89
22-Jun-09 14591.28 14668.4 14269.77 14326.22
23-Jun-09 14147.87 14394.19 14016.95 14324.01
24-Jun-09 14388.21 14479.82 14207.02 14422.73
25-Jun-09 14476.15 14578.46 14261.14 14345.62
26-Jun-09 14373.57 14781.94 14373.57 14764.64
29-Jun-09 14764.64 14955.55 14685.45 14785.74
30-Jun-09 14785.74 14907.48 14420.41 14493.84
Analysis
In this month market movement was between 14,016 points all time low on 23rd June
and 15,580 points all time high on 10th June. In first fortnight most of the stocks hit the upper
circuit in consecutive trades. Market opens at 14,790 on 1st June and closed at 14,493 on 30th
June. Finally this month Sensex fell down 300 points all over month.
66
Reasons
 Lok Sabha election results.

 Foreign market was positive
 FIIs net purchasing of `5604

1-Jul-09 14493.84 14727.49 14355.52 14645.47
2-Jul-09 14694.31 14764.35 14469.69 14658.49
3-Jul-09 14552.72 14945.85 14499.74 14913.05
6-Jul-09 14962.12 15097.87 13959.44 14043.4
7-Jul-09 14103.65 14251.88 14000.68 14170.45
8-Jul-09 14039.58 14039.58 13701.76 13769.15
9-Jul-09 13796.1 13879.18 13643.97 13757.46
10-Jul-09 13803.12 13897.19 13418.39 13504.22

13-Jul-09 13405.95 13461.68 13219.99 13400.32
14-Jul-09 13549.42 13903.48 13549.42 13853.7
15-Jul-09 13917.27 14299.54 13891.04 14253.24
16-Jul-09 14351.97 14493.1 14169.58 14250.25
17-Jul-09 14325.58 14800.7 14250.25 14744.92
20-Jul-09 14854.17 15209.36 14854.17 15191.01
21-Jul-09 15218.83 15234.21 14955.88 15062.49

22-Jul-09 15124.92 15369.42 14786.58 14843.12
23-Jul-09 15008.78 15264.84 14843.12 15231.04
24-Jul-09 15272.01 15418.61 15168.52 15378.96
27-Jul-09 15350.89 15463.09 15228.46 15375.04
28-Jul-09 15428.5 15463.46 15240.53 15331.94
29-Jul-09 15293.19 15379.43 14888.41 15173.46
30-Jul-09 15169.23 15409.91 15065.48 15387.96

67
Analysis
This movement was near 2300 to 2500 points. In this month there was no change than the last
month. This month market opened at 14,493 and closed on 31st July at 15,732 points which
was all time high of this month. One time market was fell down 1500 points and created all
time low at 13,219 on 10th July.
Reasons
 Announcement of Budget
 Foreign market was positive impact

3-Aug-09 15694.78 15963.36 15608.4 15924.23
4-Aug-09 15940.1 16002.46 15699.13 15830.98
5-Aug-09 15882.39 15973.1 15695.11 15903.83
6-Aug-09 15881.47 15969.81 15443.22 15514.03
7-Aug-09 15440.95 15501.94 15104 15160.24

10-Aug-09 15287.14 15417.34 14902.02 15009.77
11-Aug-09 15000.38 15218.65 14864.23 15074.59
12-Aug-09 14953.44 15043.62 14701.05 15020.16
13-Aug-09 15207.96 15545.13 15207.96 15518.49
14-Aug-09 15530.38 15535.47 15367.61 15411.63
17-Aug-09 15284.23 15411.63 14740.63 14784.92
18-Aug-09 14745.8 15134.51 14740.26 15035.26
19-Aug-09 15079.04 15096.94 14684.45 14809.64
20-Aug-09 14930.05 15145 14928.18 15012.32
21-Aug-09 14951.49 15275.17 14835.08 15240.83

24-Aug-09 15362.93 15676.35 15362.93 15628.75
25-Aug-09 15573.91 15735.32 15423.39 15688.47
26-Aug-09 15763.09 15831.49 15695.94 15769.85
68
27-Aug-09 15711.8 15853.71 15685.49 15781.07

28-Aug-09 15770.19 15957.67 15663.35 15922.34
31-Aug-09 15812.15 15821.35 15589.8 15666.64
Analysis
In this month crossed its one year’s all time high at 16,002 points on 4th Aug. Starting
of the month market opens at 15,694 points and closed at 15,666 points on 31st Aug. There
was no major changed between last month closing and this month closing.
Reasons
 India and China territorial front
 FIIs were sober with a net purchased of `372 cr.
1-Sep-09 15691.27 15923.09 15475.28 15551.19
2-Sep-09 15482.05 15628.1 15392.68 15467.46
3-Sep-09 15539.34 15598.18 15356.72 15398.33
4-Sep-09 15425.86 15740.83 15358.94 15689.12
7-Sep-09 15793.27 16035.5 15793.27 16016.32
8-Sep-09 16030.56 16232.16 16030.56 16123.67
9-Sep-09 16111.09 16215.74 16044.77 16183.55
10-Sep-09 16295.92 16434.77 16166.42 16216.86
11-Sep-09 16254.57 16337.98 16130.32 16264.3
14-Sep-09 16185.26 16252.18 16119.95 16214.19
15-Sep-09 16255.42 16477.23 16255.42 16454.45
16-Sep-09 16498.59 16700.56 16498.59 16677.04

69
17-Sep-09 16686.38 16820.02 16636.55 16711.11
18-Sep-09 16650.05 16765.03 16610.05 16741.3
22-Sep-09 16805.22 16943.49 16763.78 16886.43
23-Sep-09 16905.5 16905.58 16683.78 16719.5
24-Sep-09 16634.08 16834.1 16494.92 16781.43
25-Sep-09 16679.99 16812.02 16613.22 16693
29-Sep-09 16829.11 16907.84 16802.8 16852.91
30-Sep-09 16868.46 17142.52 16868.46 17126.84
Analysis
In this month market crossed 17,000 points on the last day of the month. First
fortnight markets gained considerable momentum and strongly breached the psychological
16,000 points. Market movement of this month was near 2000 points. All time low of this
month at 15,394 points was on 2nd Sep. & all time high at 17,142 on last day of the month
and gave closed at 17,126 points.
Reasons
 GDP growth, an improvement in the monsoon season
 FII investments in India during the first 15 days aggregated net purchase of `1,475
crore and `3,228 Cr. In second fortnight which actually gave momentum of the
markets.
 Foreign markets were positive
70
1-Oct-09 17186.2 17195.61 17059.36 17134.55
5-Oct-09 17062.01 17062.01 16835.8 16866.41
6-Oct-09 16879.38 16988.56 16622.05 16958.54
7-Oct-09 17069.42 17120.56 16764.07 16806.66
8-Oct-09 16908.02 16998.52 16775.36 16843.54
9-Oct-09 16915.96 16963.08 16606.95 16642.66
12-Oct-09 16687.32 17068.78 16687.32 17026.67
14-Oct-09 17117.9 17274.59 17117.9 17231.11
15-Oct-09 17274.07 17350.39 17092.83 17195.2
16-Oct-09 17196.8 17347.85 17126.55 17322.82
20-Oct-09 17414.8 17457.26 17185.04 17223.01
21-Oct-09 17229.72 17248.69 16997.86 17009.17
22-Oct-09 17031.54 17031.54 16721.26 16789.74
23-Oct-09 16795.66 17006.77 16765.2 16810.81
26-Oct-09 16808.05 16938.88 16706.08 16740.5
27-Oct-09 16699.09 16699.09 16311.5 16353.4
28-Oct-09 16335.78 16411.14 16144.17 16283.49
29-Oct-09 16191.39 16264.09 15993.83 16052.72
30-Oct-09 16135.87 16360.88 15805.2 15896.28
Analysis
In this month, First fortnight market was hip hop movement. Market was opened at
above 17,000 points of this month and then market was sometimes decline and sometimes up
closing. In second fortnight market was boom for two to four days. Than market was bearish
71
and created its all-time low at 15,805 on 30th Oct. & gave closed at 15,896 points which was
1200 points low than the last month closing. Market hit its all-time high at 17,457 points on
20th Oct. during Diwali time.
Reasons
 Major foreign market was gave positive response
 During the first fortnight FIIs had put in `4631 Cr. of funds into the equity market till
October 16.
 News related increase in US unemployment in month of Sep.
3-Nov-09 15838.63 15957.06 15330.56 15404.94
4-Nov-09 15487.97 15929.09 15487.97 15912.13
5-Nov-09 15926.13 16092.38 15564.89 16063.9
6-Nov-09 16137.42 16283.86 16075.19 16158.28
9-Nov-09 16190.79 16517.42 16147.21 16498.72
10-Nov-09 16552.43 16677.53 16371.66 16440.56
11-Nov-09 16444.44 16887.8 16405.19 16849.6
12-Nov-09 16822.18 16896.62 16605.01 16696.03
13-Nov-09 16693.15 16909.74 16666.7 16848.83
16-Nov-09 16893.11 17083.2 16893.11 17032.51
17-Nov-09 17036.23 17080.17 16882.98 17050.65
18-Nov-09 17032.01 17098.79 16958.41 16998.78
19-Nov-09 17004.98 17004.98 16712.33 16785.65
20-Nov-09 16772.75 17041.79 16635.75 17021.85
23-Nov-09 17067.14 17214.58 17045.02 17180.18

72
24-Nov-09 17230.86 17230.86 17027.52 17131.08
25-Nov-09 17149.08 17290.48 17124.15 17198.95
26-Nov-09 17199.05 17202.51 16808.87 16854.93
27-Nov-09 16718.8 16718.8 16210.44 16632.01
30-Nov-09 16655.75 17026.91 16655.75 16926.22
Analysis
In this month market opened as previous trend but on that day market was crashed by
more than 491 points and made its all time low of this month. In first fortnight the BSE
Sensex opened very weak at 15,926 points and reached its bottom at 15,564 points on
turnover front, the market remained gained 39.42 per cent, 26.23 per November 5 in an intra-
day session. In this month market made its all time high at 17,290 on 25 th Nov. This month
market movement was 2000 points. On 30th Nov. market was closed at 16,926 points which
was 1000 positive than the last month closing.
Reasons
 International markets also fared positively with US Dow gaining a whopping 6.11 per
cent.
 The robust GDP numbers helped infuse a fresh supply of blood into the otherwise
depressed markets.
 No impact of Dubai crises
73

1-Dec-09 16947.46 17218.46 16947.46 17198.27
2-Dec-09 17226.49 17329.68 17142.36 17169.91
3-Dec-09 17199.64 17361.27 17128.21 17185.68
4-Dec-09 17182.23 17291.83 17032.81 17101.54
7-Dec-09 17106.74 17176.62 16943.01 16983.14
8-Dec-09 16984.54 17237.79 16964.11 17227.68
9-Dec-09 17204.32 17227.96 17057.37 17125.22
10-Dec-09 17107 17231.05 17032.3 17189.31
11-Dec-09 17199.74 17351.71 17056.12 17119.03
14-Dec-09 17118.14 17275.19 17048.17 17097.55
15-Dec-09 17150.59 17200.47 16835.78 16877.16
16-Dec-09 16866.95 16996.12 16777.94 16912.77
17-Dec-09 16912.25 16979.52 16826 16894.25
18-Dec-09 16855.91 16899.19 16693.06 16719.83
21-Dec-09 16724.84 16750.99 16577.78 16601.2
22-Dec-09 16633.81 16738.12 16633.81 16692

23-Dec-09 16723.96 17252.09 16723.96 17231.11
24-Dec-09 17265.47 17413.69 17198.09 17360.61
29-Dec-09 17388.67 17486.05 17372.63 17401.56
30-Dec-09 17402.24 17440.05 17322.8 17343.82
31-Dec-09 17365.37 17530.94 17365.37 17464.81
Analysis
In this month market opened same as previous trend. In first fortnight market
movement was 200 to 300 points. Last fortnight market movement was 500 to 700 points.
Over all market movement was 800 to 900 points. Market made its all time low at 16,577 on
74
21st Dec. and all time high at 17,530 on last trading day of the month & gave the close at
17,464 points whish was high closing of the month.
Reason
 On the institutional investment front, FIIs continued to place their trust on Indian
bourses with a net buy of `2,287 crore till December 11. The best part was that barring
December 7 and December 9 when the selling was to the tune of `3 crore and `297
crore respectively, they remained as net gainer.

4-Jan-10 17473.45 17582.84 17378.38 17558.73
5-Jan-10 17555.77 17729.78 17555.77 17686.24
6-Jan-10 17719.47 17790.33 17636.71 17701.13
7-Jan-10 17701.97 17733.34 17566.54 17615.72
8-Jan-10 17603.87 17658.12 17508.96 17540.29
11-Jan-10 17724.59 17776.57 17500.79 17526.71
12-Jan-10 17534.1 17612 17392.55 17422.51
13-Jan-10 17368.03 17528.31 17276.46 17509.8
14-Jan-10 17525.71 17628.04 17525.71 17584.87
15-Jan-10 17604.31 17639.85 17529.11 17554.3
18-Jan-10 17538.72 17712.6 17505.5 17641.08
19-Jan-10 17650.82 17664.86 17463.78 17486.06
20-Jan-10 17486.69 17590.59 17425.05 17474.49
21-Jan-10 17474.49 17474.49 17025.26 17051.14

22-Jan-10 16978.36 17000.33 16608.09 16859.68
25-Jan-10 16847.7 16877.77 16705.56 16780.46
27-Jan-10 16708.6 16708.6 16230.85 16289.82
28-Jan-10 16317.16 16524.69 16182.14 16306.87
75
29-Jan-10 16253.82 16390.31 15982.08 16357.96

5-Jan-10 17555.77 17729.78 17555.77 17686.24
Analysis
On the first day of the new year Sensex opened at 17,473. Make the high of 17,790 on 6
January. With making low of 16,289 on 27th Sensex closed at 16,357. 17,790 was the 52
weeks high.
Reasons
 Global economy on the path of recovery and robust future growth expectations of
Indian economy.
 FIIs make purchase of 3056 crores till 8th January.
 Global markets are at the way of recovery.
 The last fortnight fall was due to US President Barack O’bamas tough stand against
the big banks.
1-Feb-10 16339.32 16422.4 16160.8 16356.03
2-Feb-10 16368.44 16525.98 16129.11 16163.44
3-Feb-10 16210.25 16552.99 16210.25 16496.05
4-Feb-10 16500.29 16508.22 16188.8 16224.95
5-Feb-10 16222.56 16222.56 15725.43 15790.93
8-Feb-10 15931.34 16061.41 15651.99 15935.61
9-Feb-10 15940.73 16094.13 15862.9 16042.18
10-Feb-10 16042.18 16141.13 15892.01 15922.17
11-Feb-10 15928.28 16202.87 15928.28 16152.59
15-Feb-10 16186.9 16227.04 16011.82 16038.35
16-Feb-10 16042.18 16310.39 16021.29 16226.68

76
17-Feb-10 16228.91 16480.89 16228.91 16428.91
18-Feb-10 16421.2 16452.51 16287.17 16327.84
19-Feb-10 16256.53 16301.94 16074.58 16191.63
22-Feb-10 16191.32 16423.23 16191.32 16237.05
23-Feb-10 16213.14 16324.93 16178.91 16286.32
24-Feb-10 16218.68 16328.44 16187.44 16255.97
25-Feb-10 16264.1 16329.33 16167.13 16254.2
26-Feb-10 16255.33 16669.25 16249.67 16429.55
Analysis
Sensex opened at 16,339 and make high of 16,669 on last day of the trading for
month of February and make the low of 15,651 and closed at 16,429. Market was in very
volatile phase.
Reason
 The global cues were very disruptive

 Union Budget make the recovery from the lowest piont of the Sensex

2-Mar-10 16438.45 16808.49 16438.45 16772.56
3-Mar-10 16778.29 17012.61 16778.29 17000.01
4-Mar-10 17013.68 17024.96 16888.05 16971.7
5-Mar-10 16988.29 17097.71 16936.12 16994.49

8-Mar-10 17034.92 17187.55 17034.92 17102.6
9-Mar-10 17089.22 17130.83 17031.21 17052.54
10-Mar-10 17072.94 17183.51 17027.92 17098.33
77
11-Mar-10 17087.63 17215.07 17054.28 17167.96

12-Mar-10 17176.02 17244.54 17126.93 17166.62
15-Mar-10 17166.97 17195.49 17061.14 17164.99
16-Mar-10 17169.84 17416.55 17150.06 17383.18

17-Mar-10 17389.47 17576.78 17389.47 17490.08
18-Mar-10 17492.81 17548.13 17417.61 17519.26
19-Mar-10 17531.47 17600.87 17502.14 17578.23
22-Mar-10 17481.96 17559.18 17337.38 17410.57

23-Mar-10 17422.51 17530.79 17356.64 17451.02
25-Mar-10 17458.51 17575.23 17383.21 17558.85
26-Mar-10 17558.85 17682.94 17558.85 17644.76

29-Mar-10 17639.18 17793.01 17639.18 17711.35
30-Mar-10 17703.67 17783.35 17558.22 17590.17
31-Mar-10 17602.39 17699.5 17488.55 17527.77
Analysis
Sensex opened at 16,339 and make high of 16,669 on last day of the trading for month of
February and make the low of 15,651 and closed at 16,429. Market was in very volatile
phase.
Reasons
 The global cues were very disruptive

 Union Budget make the recovery from the lowest point of the Sensex
78
01-Apr-2010 17,555.04 17,706.56 17,555.04 17,692.62
05-Apr-2010 17,693.66 17,948.54 17,693.66 17,935.68
06-Apr-2010 17,940.32 17,991.41 17,898.00 17,941.37
07-Apr-2010 17,915.60 18,047.86 17,878.31 17,970.02
08-Apr-2010 17,950.56 17,960.91 17,679.34 17,714.40
09-Apr-2010 17,715.16 17,971.47 17,715.16 17,933.14
12-Apr-2010 17,874.16 17,995.25 17,816.19 17,853.00
13-Apr-2010 17,831.38 17,892.78 17,736.09 17,821.96
15-Apr-2010 17,804.55 17,975.57 17,619.02 17,639.26
16-Apr-2010 17,645.91 17,663.99 17,529.55 17,591.18
19-Apr-2010 17,584.86 17,584.86 17,276.80 17,400.68
20-Apr-2010 17,394.68 17,560.09 17,394.68 17,460.58
21-Apr-2010 17,458.76 17,565.55 17,446.51 17,472.56
22-Apr-2010 17,476.48 17,778.34 17,408.02 17,573.99
23-Apr-2010 17,533.88 17,725.88 17,533.88 17,694.20
26-Apr-2010 17,692.26 17,826.48 17,692.26 17,745.28
27-Apr-2010 17,744.93 17,769.25 17,678.56 17,690.62
28-Apr-2010 17,643.59 17,643.59 17,344.58 17,380.08
29-Apr-2010 17,382.09 17,532.86 17,382.09 17,503.47
30-Apr-2010 17,503.47 17,646.61 17,503.47 17,558.71
Analysis
On 1st April starting new financial year market opened at 17,555. And make the high of
18,047 on 7th April. And make the low of 17,276 on 19th April. Finally Sensex closed on
17,558.
79
Reasons
 With good fourth quarter as well as annual results in Indian corporate.

 Heavily investment of FIIs in Indian bourses
 Global recovery after the recession
 Goldman Sachs controversy makes all the financial market floundering at the end of
the month

03-May-2010 17,536.86 17,536.86 17,345.92 17,386.08
04-May-2010 17,371.75 17,464.82 17,101.96 17,137.14

05-May-2010 17,103.95 17,121.66 16,858.23 17,087.96
06-May-2010 17,080.47 17,080.47 16,823.00 16,987.53

07-May-2010 16,939.58 16,939.58 16,684.13 16,769.11
10-May-2010 16,799.49 17,356.54 16,799.49 17,330.55

11-May-2010 17,336.13 17,379.15 17,104.45 17,141.53
12-May-2010 17,141.53 17,252.52 17,028.08 17,195.81

13-May-2010 17,323.63 17,389.15 17,240.35 17,265.87
14-May-2010 17,267.25 17,329.32 16,923.65 16,994.60

17-May-2010 16,961.92 16,961.92 16,551.00 16,835.56
18-May-2010 16,840.59 17,000.34 16,744.13 16,875.76

19-May-2010 16,802.39 16,802.39 16,373.32 16,408.49
20-May-2010 16,419.10 16,617.80 16,419.10 16,519.68

21-May-2010 16,317.94 16,486.74 16,187.03 16,445.61
24-May-2010 16,494.61 16,757.73 16,413.03 16,469.55

25-May-2010 16,444.57 16,444.57 15,960.15 16,022.48
26-May-2010 16,069.78 16,410.35 16,069.78 16,387.84

27-May-2010 16,410.88 16,694.55 16,331.10 16,666.40
28-May-2010 16,692.66 16,891.17 16,692.66 16,863.06

31-May-2010 16,872.17 16,971.15 16,806.50 16,944.63
80
Analysis
In the month may market opened at 17,536. Make the high of 17,646 on that day itself. With
making the low of 15,960 on 25th May Sensex closed at 16,944.
Reasons
 Crisis in European country make fall in the Sensex

 The market volatile in centre of the month but after the announcement of package by
European Union (EU) recovery was made in the end sessions.

01-Jun-2010 16,942.82 16,942.82 16,318.39 16,572.03
02-Jun-2010 16,574.79 16,774.15 16,571.45 16,741.84
03-Jun-2010 16,786.28 17,072.63 16,786.28 17,022.33
04-Jun-2010 17,036.55 17,150.42 16,963.92 17,117.69
07-Jun-2010 17,069.77 17,069.77 16,686.73 16,781.07
08-Jun-2010 16,760.60 16,895.73 16,560.64 16,617.10
09-Jun-2010 16,621.12 16,817.69 16,591.26 16,657.89
10-Jun-2010 16,668.91 16,942.60 16,668.91 16,922.08
11-Jun-2010 16,994.07 17,131.56 16,994.07 17,064.95
14-Jun-2010 17,118.74 17,351.18 17,118.74 17,338.17
15-Jun-2010 17,355.49 17,442.50 17,249.46 17,412.83
16-Jun-2010 17,500.30 17,530.38 17,407.30 17,462.87
17-Jun-2010 17,490.52 17,647.42 17,394.90 17,616.69
18-Jun-2010 17,628.02 17,721.99 17,525.29 17,570.82
21-Jun-2010 17,654.81 17,919.62 17,654.81 17,876.55
22-Jun-2010 17,868.12 17,868.12 17,725.63 17,749.69
23-Jun-2010 17,694.87 17,782.41 17,629.19 17,755.94
81
24-Jun-2010 17,750.51 17,845.65 17,632.80 17,730.24

25-Jun-2010 17,705.11 17,714.73 17,546.73 17,574.53
28-Jun-2010 17,577.66 17,794.80 17,571.85 17,774.26
29-Jun-2010 17,777.95 17,777.95 17,465.73 17,534.09
30-Jun-2010 17,476.85 17,725.04 17,373.78 17,700.90
Analysis
Sensex opened at 16,942 and make the high of 17,919 on 21st July. The low was made of
16,318 on opening day and the closing was settled on 17,700.
Reasons
 In starting of the month due to the European crisis Sensex was weak.
 There was fear of higher inflation in market and inflation was 13.73 per cent.
 Fear of hike in the interest rate
 As the industrial production data announced the Sensex was recover

01-Jul-2010 17679.34 17679.34 17455.41 17509.33
02-Jul-2010 17523.47 17598.94 17426.78 17460.95
05-Jul-2010 17473.83 17505.73 17423.74 17441.44
06-Jul-2010 17402.68 17643.14 17395.58 17614.48
07-Jul-2010 17623.66 17623.66 17447.15 17471.03
08-Jul-2010 17536.48 17728.37 17536.48 17651.73
09-Jul-2010 17667.85 17857.58 17667.85 17833.54
12-Jul-2010 17875.97 18010.07 17874.95 17937.2
13-Jul-2010 17908.3 17998.04 17855.85 17985.9
14-Jul-2010 18024.95 18167.22 17897.26 17938.16
15-Jul-2010 17874.71 17978.56 17858.73 17909.46
16-Jul-2010 17911.13 17980.27 17892.16 17955.82
82
19-Jul-2010 17914.12 18005.07 17856.4 17928.42

20-Jul-2010 17918.43 18040.17 17848.07 17878.14
21-Jul-2010 17873.92 18012.2 17873.92 17977.23
22-Jul-2010 17978.37 18127.9 17879.88 18113.15
23-Jul-2010 18132.29 18237.56 18093.93 18130.98
26-Jul-2010 18056.24 18194.09 17993.88 18020.05
27-Jul-2010 17998.74 18149.56 17998.74 18077.61
28-Jul-2010 18077.85 18137.14 17925.4 17957.37
29-Jul-2010 17961.58 18013.1 17902.84 17992
30-Jul-2010 17981.06 18000.35 17838.92 17868.29
Analysis
Sensex opened with 17,523 and make the high of 18,237. With touching the bottom of
17,505 in first fortnight, Sensex closed at 17,868 .
Reasons
 Acquisitions, Mergers, IPOs, new orders make rise in the Sensex.

 Gradual improvement make the Sensex touch the poiny of 18,000
 Less than expected hilke in the intrest rate.
 FIIs make the purchase of `3249 crore.

02-Aug-2010 17,911.31 18,104.24 17,911.31 18,081.21
03-Aug-2010 18,149.90 18,167.45 18,072.38 18,114.83
04-Aug-2010 18,115.56 18,249.46 18,093.03 18,217.44
05-Aug-2010 18,234.85 18,295.43 18,156.45 18,172.83
06-Aug-2010 18,165.49 18,244.56 18,118.19 18,143.99
09-Aug-2010 18,141.11 18,309.25 18,139.90 18,287.50
83
10-Aug-2010 18,272.28 18,293.40 18,170.77 18,219.99

11-Aug-2010 18,177.35 18,263.88 18,042.89 18,070.19
12-Aug-2010 17,972.65 18,113.62 17,914.78 18,073.90
13-Aug-2010 18,080.29 18,260.39 18,050.42 18,167.03
16-Aug-2010 18,169.80 18,203.92 17,997.46 18,050.78
17-Aug-2010 18,049.19 18,140.15 18,026.00 18,048.85
18-Aug-2010 18,067.67 18,286.00 18,067.67 18,257.12
19-Aug-2010 18,276.50 18,475.27 18,276.50 18,454.94
20-Aug-2010 18,444.24 18,464.14 18,360.90 18,401.82
23-Aug-2010 18,400.33 18,454.38 18,371.02 18,409.35
24-Aug-2010 18,407.01 18,451.73 18,260.71 18,311.59
25-Aug-2010 18,308.51 18,312.43 18,156.00 18,179.64
26-Aug-2010 18,194.78 18,261.06 18,159.13 18,226.35
27-Aug-2010 18,205.90 18,248.36 17,944.16 17,998.41
30-Aug-2010 18,063.48 18,216.50 17,960.23 18,032.11
31-Aug-2010 18,015.66 18,015.66 17,819.99 17,971.12
Analysis
Sensex opened at 17,981 and make the peak of 18,475 on 18th August. With making
low of 17,819 Sensex closed at 17,971 on last trading day of the August month. This month
was very range bound month. Market was in consolidation phase.
Reasons
 All the market of world are falled 2-3.5 per cent.

 FIIs were net Buyer where as Indian MFs were net seller for all the month.
84

01-Sep-2010 18,027.12 18,227.14 18,027.12 18,205.87
02-Sep-2010 18,215.28 18,355.84 18,215.28 18,238.31
03-Sep-2010 18,238.08 18,316.32 18,206.50 18,221.43
06-Sep-2010 18,124.29 18,600.30 18,124.29 18,560.05
07-Sep-2010 18,571.73 18,711.20 18,571.43 18,645.06
08-Sep-2010 18,627.67 18,721.21 18,540.65 18,666.71
09-Sep-2010 18,669.12 18,823.17 18,669.12 18,799.66
13-Sep-2010 18,845.31 19,243.44 18,845.31 19,208.33
14-Sep-2010 19,218.13 19,487.02 19,218.13 19,346.96
15-Sep-2010 19,343.74 19,554.50 19,340.99 19,502.11
16-Sep-2010 19,476.93 19,636.66 19,383.46 19,417.49
17-Sep-2010 19,436.71 19,639.18 19,436.71 19,594.75

20-Sep-2010 19,445.42 19,927.30 19,445.42 19,906.10
21-Sep-2010 19,925.79 20,088.96 19,860.88 20,001.55
22-Sep-2010 20,039.43 20,105.54 19,804.02 19,941.72
23-Sep-2010 19,944.30 19,998.32 19,771.63 19,861.01
24-Sep-2010 19,836.43 20,071.75 19,833.52 20,045.18
27-Sep-2010 20,082.26 20,267.98 20,082.26 20,117.38
28-Sep-2010 20,114.37 20,157.51 19,981.96 20,104.86
29-Sep-2010 20,086.89 20,234.05 19,923.11 19,956.34
30-Sep-2010 19,931.49 20,114.73 19,864.46 20,069.12
Analysis
Sensex opened at 18,027 and the openingbitself was the low for this month and make
the peak of 20,267 on 27th September. Sensex closed at 20,445.
85
Reasons
 With positive news from global indices Sensex recovered Sensex gained 1567 point in
first fortnight.
 FIIs make the puchse of `32,804 crore.
01-Oct-2010 20094.1 20475.47 20094.1 20445.04
04-Oct-2010 20501.21 20706.74 20437.36 20475.73
05-Oct-2010 20461.98 20560.54 20383.16 20407.71
06-Oct-2010 20448.69 20669.95 20447.05 20543.08
07-Oct-2010 20544.3 20581.29 20272.77 20315.32
08-Oct-2010 20297.58 20409.19 20145.74 20250.26
11-Oct-2010 20291.59 20461.27 20274.95 20339.89
12-Oct-2010 20357.79 20368.4 20107.25 20203.34
13-Oct-2010 20223.45 20703.97 20211.66 20687.88
14-Oct-2010 20700.42 20854.55 20442.82 20497.64
15-Oct-2010 20518.5 20578.45 20090.18 20125.05
18-Oct-2010 20160.55 20229.39 19870.51 20168.89
19-Oct-2010 20298.55 20332.02 19923.96 19983.13
20-Oct-2010 19924.02 20043.82 19822.66 19872.15
21-Oct-2010 19951.34 20293.1 19886.12 20260.58
22-Oct-2010 20334.14 20351.74 20088.67 20165.86
25-Oct-2010 20199.73 20452.3 20199.73 20303.12

86
26-Oct-2010 20325.44 20344.68 20189.3 20221.39
27-Oct-2010 20220.58 20220.58 19923.71 20005.37
28-Oct-2010 20116.49 20185.46 19869.32 19941.04
29-Oct-2010 19986.32 20080.33 19768.96 20032.34
Analysis
Sensex opened at 20,501 and make the peak of 20,854 on 13th October. Sensex make
the low of 19,872, and closed at 20,032. This was the time for correction in Indian market.
Reasons
 In the first fortnight there was opening ceremony of common wealth games.
 RIL registered the highest result(PAT increased by 27.8 Per cent)
 Powerful listing of Coal India.
 FIIs make the purchase of `11,215 crore in this month.

01-Nov-2010 20,272.49 20,609.65 20,267.10 20,355.63
02-Nov-2010 20,407.18 20,418.35 20,281.73 20,345.69
03-Nov-2010 20,472.86 20,538.80 20,426.18 20,465.74
04-Nov-2010 20,605.63 20,917.03 20,605.63 20,893.57
05-Nov-2010 21,045.66 21,108.64 20,961.98 21,004.96
08-Nov-2010 21,041.97 21,075.71 20,822.37 20,852.38
09-Nov-2010 20,851.91 20,984.08 20,762.81 20,932.48
10-Nov-2010 20,917.54 20,970.91 20,849.92 20,875.71
11-Nov-2010 20,930.45 20,937.38 20,544.22 20,589.09
12-Nov-2010 20,529.74 20,593.91 20,108.40 20,156.89
15-Nov-2010 20,167.62 20,335.51 20,046.60 20,309.69
16-Nov-2010 20,371.73 20,380.10 19,832.22 19,865.14
87
18-Nov-2010 19,997.83 20,056.44 19,615.51 19,930.64

19-Nov-2010 19,982.75 19,982.75 19,504.87 19,585.44
22-Nov-2010 19,713.84 19,989.02 19,641.42 19,957.59
23-Nov-2010 19,841.42 19,841.42 19,342.69 19,691.84
24-Nov-2010 19,735.28 19,835.57 19,375.92 19,459.85
25-Nov-2010 19,560.25 19,628.27 19,257.37 19,318.16
26-Nov-2010 19,391.96 19,417.61 18,954.82 19,136.61
29-Nov-2010 19,230.34 19,450.09 19,167.19 19,405.10
30-Nov-2010 19,373.23 19,610.46 19,218.02 19,521.25
Analysis
Sensex opened at 20,272 and make the high of 21,108 in this month, with making low of
19,136 on 26th November, it closed at 19,521. This was the month of Diwali so in the
muhurat trading session Sensex touched its high of the month.
Reasons
 Dismal IIP numbers make market haywire.

 Industrial growth was declined to 4.4 per cent

01-Dec-2010 19,529.99 19,887.26 19,525.15 19,850.00
02-Dec-2010 20,038.66 20,084.25 19,917.77 19,992.70
03-Dec-2010 20,007.89 20,067.81 19,877.12 19,966.93
06-Dec-2010 20,038.25 20,217.86 19,944.71 19,981.31
07-Dec-2010 19,982.90 20,008.36 19,824.44 19,934.64
08-Dec-2010 19,874.30 19,875.51 19,611.35 19,696.48
09-Dec-2010 19,746.15 19,771.09 19,160.87 19,242.36
88
10-Dec-2010 19,201.89 19,537.40 19,074.57 19,508.89

13-Dec-2010 19,600.28 19,710.57 19,321.41 19,691.78
14-Dec-2010 19,746.75 19,836.82 19,621.41 19,799.19
15-Dec-2010 19,791.22 19,817.61 19,571.43 19,647.77
16-Dec-2010 19,698.58 19,897.22 19,554.35 19,864.85
20-Dec-2010 19,770.02 20,006.16 19,711.12 19,888.88
21-Dec-2010 19,925.76 20,090.84 19,925.76 20,060.32
22-Dec-2010 20,118.82 20,151.25 19,931.31 20,015.80
23-Dec-2010 20,038.83 20,076.08 19,939.30 19,982.88
24-Dec-2010 19,911.46 20,086.42 19,880.36 20,073.66
27-Dec-2010 20,062.60 20,190.13 20,010.33 20,028.93
28-Dec-2010 20,056.47 20,090.41 19,981.76 20,025.42
29-Dec-2010 20,060.88 20,274.20 20,054.64 20,256.03
30-Dec-2010 20,274.12 20,410.91 20,274.12 20,389.07
31-Dec-2010 20,412.76 20,552.03 20,412.76 20,509.09
Analysis
Sensex opened at 19,529 and make the high of 20,552 at the last trading day of the
month.Sensex make the low of 19,074 on 10 December. And closed at 20,509.
Reason
 In first fortnight due to problems in china the market remain remain rang bound.
 FIIs make sale of `3341 crore in first fortnight.
 Inflation number make the market down somewhere but not make the big crashed.

03-Jan-2011 20,621.61 20,664.80 20,531.00 20,561.05
04-Jan-2011 20,617.38 20,651.21 20,449.01 20,498.72

89
05-Jan-2011 20,509.95 20,509.95 20,243.95 20,301.10

06-Jan-2011 20,395.50 20,425.85 20,107.17 20,184.74
07-Jan-2011 20,163.85 20,210.62 19,629.22 19,691.81
10-Jan-2011 19,714.42 19,720.43 19,158.43 19,224.12
11-Jan-2011 19,279.77 19,431.56 19,003.60 19,196.34
12-Jan-2011 19,353.34 19,574.63 19,048.56 19,534.10
13-Jan-2011 19,492.30 19,522.38 19,136.27 19,182.82
14-Jan-2011 19,198.04 19,447.82 18,811.96 18,860.44
17-Jan-2011 18,911.43 19,018.94 18,779.38 18,882.25
18-Jan-2011 18,983.20 19,120.62 18,933.47 19,092.05

19-Jan-2011 19,153.31 19,167.06 18,898.56 18,978.32
20-Jan-2011 18,892.43 19,100.26 18,794.73 19,046.54
21-Jan-2011 19,007.08 19,065.34 18,932.40 19,007.53
24-Jan-2011 19,095.69 19,194.46 18,998.38 19,151.28
25-Jan-2011 19,227.42 19,340.99 18,949.44 18,969.45
27-Jan-2011 19,086.69 19,086.69 18,656.05 18,684.43
28-Jan-2011 18,708.62 18,723.12 18,235.45 18,395.97
31-Jan-2011 18,226.21 18,395.09 18,038.48 18,327.76
Analysis
In this month market opened at above 20,000 points and created its all time high on first
trading days at 20,664. Market movement of this month was 2400 to 2500 points. Market
made its all tile low at last trading days of the month at 18,038 points.
Reasons
 High inflation rate

 All foreign market had negative during this month
 RBI quarterly review of credit policy.
90
01-Feb-2011 18,425.18 18,452.06 17,982.17 18,022.22
02-Feb-2011 18,216.91 18,306.00 18,042.61 18,090.62
03-Feb-2011 18,113.73 18,466.21 18,064.61 18,449.31
04-Feb-2011 18,450.07 18,542.20 17,926.98 18,008.15
07-Feb-2011 18,135.02 18,180.94 17,977.01 18,037.19
08-Feb-2011 18,141.51 18,141.51 17,742.18 17,775.70
09-Feb-2011 17,723.99 17,864.32 17,508.35 17,592.77
10-Feb-2011 17,603.29 17,636.88 17,362.59 17,463.04
11-Feb-2011 17,519.13 17,752.56 17,295.62 17,728.61
14-Feb-2011 17,940.16 18,227.62 17,857.12 18,202.20
15-Feb-2011 18,260.08 18,361.66 18,050.48 18,273.80
16-Feb-2011 18,273.06 18,358.84 18,216.12 18,300.90
17-Feb-2011 18,345.12 18,532.61 18,233.79 18,506.82
18-Feb-2011 18,564.08 18,690.97 18,159.82 18,211.52
21-Feb-2011 18,238.54 18,457.49 18,082.66 18,438.31
22-Feb-2011 18,390.72 18,457.90 18,187.33 18,296.16
23-Feb-2011 18,233.77 18,377.48 18,150.01 18,178.33
24-Feb-2011 18,135.12 18,135.12 17,559.70 17,632.41
25-Feb-2011 17,775.08 17,812.44 17,469.97 17,700.91
28-Feb-2011 17,811.08 18,296.53 17,718.88 17,823.40
Analysis
In first fortnight market made its all time low at 17,295 on 11th February of this month and in
second fortnight made its all time high at 18,690 on 18th February of this month. Market
movement of this month was 1200 to 1300 points. After that market crashed and gave closing
on 28th February at 18,823 points whish was 700 points down than the last month.
91
Reasons
 Previous bull trend(First fortnight)

 Budget declared
 Tsunami in Japan

01-Mar-2011 17,982.28 18,478.68 17,964.39 18,446.50
03-Mar-2011 18,318.32 18,603.57 18,253.62 18,489.76
04-Mar-2011 18,622.70 18,736.97 18,448.69 18,486.45
07-Mar-2011 18,361.65 18,361.65 18,058.71 18,222.67
08-Mar-2011 18,277.34 18,466.81 18,266.62 18,439.65
09-Mar-2011 18,522.80 18,583.30 18,303.80 18,469.95
10-Mar-2011 18,430.84 18,430.84 18,261.26 18,327.98
11-Mar-2011 18,248.11 18,368.43 18,063.29 18,174.09
14-Mar-2011 18,167.10 18,463.84 18,155.43 18,439.48
15-Mar-2011 18,113.79 18,326.33 17,920.55 18,167.64
16-Mar-2011 18,263.68 18,444.47 18,263.68 18,358.69
17-Mar-2011 18,227.16 18,354.27 18,104.02 18,149.87
18-Mar-2011 18,251.18 18,259.61 17,849.53 17,878.81
21-Mar-2011 17,984.72 18,007.73 17,792.17 17,839.05
22-Mar-2011 17,929.09 18,041.38 17,878.80 17,988.30
23-Mar-2011 17,972.04 18,218.28 17,950.17 18,206.16
24-Mar-2011 18,286.42 18,373.97 18,269.32 18,350.74
25-Mar-2011 18,480.69 18,858.30 18,480.69 18,815.64
28-Mar-2011 18,799.71 19,024.18 18,799.57 18,943.14
29-Mar-2011 18,949.57 19,226.21 18,944.82 19,120.80
30-Mar-2011 19,178.77 19,357.10 19,178.77 19,290.18
31-Mar-2011 19,339.75 19,575.16 19,284.35 19,445.22
92
Analysis
After great T-sunami in Japan and Budget market was recovery in this month. In tis month
market made its all time high at 19,575 on 31st March and all time low at 19,792 points on
21st March. This month market gave good return to the investor because when market was
closed 31st march at 19,792 points it was 1300 points up than the last month closing.
Reasons
 Positive impact of Budget
 FIIs offloading ` 8700 cr. Between January to March

93
CHAPTER 4
FINDINGS AND RECOMENDATIONS
94
FINDINGS
After undertaking the indepth study of stock market and various financial markets, it was
found that the several events which had most affection in fluctuation of Sensex particular
month.
2006-07
Factors which affect heavily in the yea 2006-07 are as follows
 Fluctuation in crude oil prices.
 Expectation of good result.
 Financial Results of Indian corporate.
 FIIs positive response in Financial Results.
 Kerala and Bengal election.
 Increased Inflation rate.
 Expectation of good result.
 Rumor of resigning of our Prime Minister Dr. Manmohan Singh.
 Weak global markets concern.
 IIP rose to 12.4 per cent.
 Appreciation of Rupee Value.
 Higher growth in GDP(8 per cent)
 Hike in the CRR rate.
 Successful IPO (Parsvnath Devlopers and Shobha Developers).
 Raising Short-Term Capital Gains Tax to 15 per cent.
 Making Long-Term Capital Gains Taxable.
 Introduction of Tax on Dividends.
 Increase in Service Tax rates: The spread of Service.
 Non Reintroduction of Section 80 L.
 RIL’s MoU with Dow chemical.
95
Sensex
16000
14000
12000
10000
8000
6000
4000 Sensex
2000
0
July
October
April
May
August
September
November
Fabruary
June
January
March
Decenber
8
Inflation & Repo rate IIP & Crude Oil price
300
6 250
200
4 150 IIP
Inflation % 100
2 50
Repo rate 0 Crude Oil
(in $)
October
August
Fabruary
April
June
Decenber
2007-08
Factors which affect heavily in the yea 2007-08 are as follows:
 Hike in the CRR and Rapo rate.
 Announcement of monetary policy.
 GDP Growth rate at 9.4 percent 18 years high.
 Higher growth in manufacturing and service sectors.
 Investment pattern of FIIs.
 Decrease in inflation rate.
 Positive forecasting of monsoon.
 Positive sentiments from global market.
 Listing with a bang of DLF and Vishal retail.
 Strengthening of Japanese Yen and US dollar and Euro.
96
 SBI announced merger with one of the associates State Bank of Saurastra.
 Appreciation of rupee value.
 Diwali and second quarter result.
 Hike in CRR to 7.5 per cent.
 Higher crude oil price(crossed $ 100).
 Subprime in the US country.
 Poor Listing of Reliance Power.
 Poor industrial growth data.
 Union Budget of P.Chindambaram.
 Announcement of agriculture loan waiver `60,000 crores.
Sensex
25000
20000
15000
10000
5000 Sensex
0
July
August
October
November
April
May
September
Fabruary
June
January
Decenber
March
Inflation & Repo Rate IIP & Crude Oil

400
10 300
8 200 IIP
6
4 Inflation % 100
2 Repo Rate Crude Oil
0 0
Septem…
Novem…
(in $)
August
October
Fabruary
April
June
Decenber
July
October
August
Fabruary
April
May
June
January
Decenber
March
97
2008-09
Factors which affect heavily in the yea 2008-09 are as follows:
 Citi Groups loss of $5.1 Billion.
 Good third quarter result.
 Higher crude oil price($127/barrel)
 Higher inflation rate(8 per cent)
 The debacle of UPA government in Karnataka assembly election.
 Ranbaxy’s acquisition with Japanese based firm Daiichi Sankyo
 Advance tax payment.
 Threat of fall of UPA government over the nuclear issue.
 Poor IIP numbers.
 Negative sentiment of global economy.
 Financial crisis in US and European country.
 Cut in CRR and repos.
 Selection of Barak Obama in US election.
 Terrorist Attack on Mumbai Taj Hotel.
 US had official accept the recession in their economy.
 Decline in export of 1201 per cent.
 US government had announced $1 trillion bailout package.
 Satyam Scandal (Fraud)

 Union Budget.
98
Sensex
20000
15000
10000
5000
Sensex
0
July
August
October
November
Fabruary
April
May
September
January
June
Decenber
March
Inflation & Repo rate IIP & Crude Oil
12 350
10 300
8 250
200 IIP
6 150
4 Inflation % 100
2 Repo rate % 50 Crude Oil
0 0 (in $)
October
August
Fabruary
April
June
Decenber
2009-10
 Recovery in global market.

 FIIs investment.
 Loksabha Election.\
 GDP growths.
 Good monsoon.
 Union Budget make the recovery at last.
99
Sensex
20000
15000
10000
5000 Sensex
0
Inflation & Repo Rate IIP & Crude Oil

20 400
350
15 300
250
10 Inflation % 200 IIP
150
5 100
Repo rate 50 Crude Oil
0 % 0 (in $)
October
August
August
October
Fabruary
Fabruary
April
April
June
June
Decenber
Decenber
2010-11
 Starting with good result of Indian corporate.

 Heavily investment of FIIs in Indian bourses
 Goldman Sachs controversy makes all the financial market floundering at the end of
the month.
 Crisis in European country make fall in the Sensex
 Fear of higher inflation rate(13.73 per cent).
 Higher industrial production.
 Acquisitions, Mergers, IPOs, new orders make rise in the Sensex.
 Less than expected hike in interest rate.
 Opening ceromany of CWG proves that india is economically powerful.
100
 Dismal IIP numbers.

 Industrial growth was declined to 4.4 per cent.
 Higher inflation rate.
 RBIs quarterly review of credit policy.
 Announcement of Union Budget.
 Tsunami in Japan.
Sensex
25000
20000
15000
10000
5000 Sensex
0
15
Inflation & Repo rate IIP & Crude Oil
400
10
300
5 Inflation % 200 IIP
100
Repo rate Crude Oil
0 % 0 (in $)
July
October
August
November
Fabruary
April
May
September
January
June
March
Decenber
October
August
Fabruary
April
June
Decenber
Limitations of the study
 The study can be done for larger period only, lower tenure don’t give good results
 Perfect data for the study cant captured from this sorter period
 The time Period which is given for study is very sorter
101
Conclusion
India has been witness to a four-year up and down cycle in the stock markets. Since 1992, the
Indian markets have peaked every fourth year and then dropped 35-45% during the next three
years. What is surprising though is that the Dalal Street has bucked the trend this time around.
Some of the major conclusions derived in the study are as under.
 Declaration of any financial result and other information of the company has direct
effect on its stock price.
 News related to any political and economical affair has also the direct effect on stock
market.
 Fluctuation in crude oil prices.
 Fluctuation in interest rate
 Change in monitory policy.
 Change in various rates like CRR & SLR.
 Global economy
The fluctuation in the market is the result of multi dimension impact of multiple factors more
affects are line with each other sometime directly or some time indirectly. The present study
an attempt has made to cover the major obvious factors that could be some more factors may
be note directly not related but indirectly related can also have some bearing the phenomena
of fluctuation. It is a complete phenomenon where the permutation and combination or the
factors are constantly changes.
The analysis provides history in major which was serve as guide post studying and
forecasting the trends
In short, the following hypothesis have been tested and proved positive.
 Any fluctuation in foreign market has more effect on Indian stock market than that of
domestic market.
 In the given volatile economic conditions, the market is efficient to any news and
information.
102
Recommendations
After this study, I would like to give following recommendations, which can help to the
Investors, Brokers and SEBI and the policy makers in general.
INVESTORS
 I would suggest that Long term Investors should not invest into panic market, which
led investors to erode their wealth.
 It must be remembered that Long-term investors should go for frontline stocks, which
helps to keep their income regular and steady.
 I would also suggest that Investors should take into consideration various things
before investing into scripts such as:
Long term growth prospect in company
 Financial positions of company
 Liquidity position
 Dividend policy
 Past performance of company
SEBI
 SEBI should come out with new regulation in context of circuit breakers.
 SEBI should monitor HNI transactions in domestic as well as global market.
 SEBI should issue regularly draft containing penalty details on defaulters to keep
market less speculative
103
Bibliography
Magazines
 SPA CAPITAL company data base (th-08, vol-54632, KJ5D)
 Capita market March 27-April 2006 page no. 13.
 Capita market May 22-June 4 2006 page no.76-78.
 Capita market July 3-July 16 2006 page no. 20.
 Capita market Sept 25-Oct 8 2006 page 16.
News Papers
Business standard
Financial express
Economic times
Times of India
Sandesh Surat Edition

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1

Main components of Indian Share Market:

Bombay Stock Exchange (BSE)

National Stock Exchange (NSE)

Regulatory Authority of Indian Share Market

Key strengths of the Indian securities markets

(a) Stock Broker should be registered as per SEBI Act, 1972.

(b) Stock should be listed in the Stock Exchange.

(Regulation) Act, 1956.

(c) The Sale/Purchase should be on behalf of an investor.

· Protecting brokerage yield in a highly competitive and fragmented equity brokerage

· Achieving a critical scale of operations to sustain profitability even in a prolonged dull

fund houses are very selective in taking exposure to brokerage houses.

associated risks, especially during periods of extreme market volatility.

research etc. Intense competition expected from FII brokerage houses.

· Diversifying earning profile to reduce concentration risk on the brokerage business.

· Maintaining flexible cost structure for protecting profitability in a market downturn.

Example of Secondary market:

Importance of Secondary Market:

GROWTH OF STOCK BROKING INDUSTRY

Domestic equity brokerage volume reported a growth of 66% in Q1 FY09-10 on a sequential

Term as pressure on overall profitability is likely to persist.

TITLE OF THE STUDY:-

A Study on factors affecting fluctuations in stock market

Secondary data refers to the information or facts already collected. It is

Advantages of secondary data

The information can be collected by incurring least cost.

The time required for obtaining the information is very less.

Most of the secondary data are those published by big institutions. So

Limitations of the study

Date Open High Low Close

3-Apr-06 11342.96 11579.1 11342.96 11564.36

4-Apr-06 11599.8 11710.69 11570.11 11638.01

5-Apr-06 11671.14 11755.2 11653.39 11746.9

7-Apr-06 11845.13 11930.66 11564.87 11589.44

10-Apr-06 11620.38 11691.92 11535.28 11662.55

12-Apr-06 11693.15 11702.77 11302.78 11355.73

13-Apr-06 11366.91 11380.83 11008.43 11237.23

17-Apr-06 11323.74 11560.9 11323.74 11539.68

18-Apr-06 11624.97 11834.77 11624.97 11821.57

19-Apr-06 11880.05 11986.09 11799.62 11895.98

20-Apr-06 11941.49 12053.74 11866.21 12039.55

21-Apr-06 12053.9 12102 11860.35 12030.3

24-Apr-06 12063.73 12071.07 11882.48 11915.24

25-Apr-06 11943.08 11953 11621.61 11646.78

26-Apr-06 11677.05 11965.09 11635.4 11938.53

27-Apr-06 11968.8 12086.91 11803.49 11835.02

28-Apr-06 11698.68 11877.32 11344.61 11851.93

 Increased in crude oil prices.

For the month of May 2006

Date Open High Low Close

9-May-06 12488.38 12546.47 12356.04 12513.86

29-May-06 10855.03 10992.38 10781.61 10853.14

30-May-06 10886.61 10988.23 10722.92 10786.63

 FIIs were selling more than the buying

Date Open High Low Close

2-Jun-06 10104.57 10477.35 10011.45 10451.33

5-Jun-06 10537.08 10552.38 10186.33 10213.48

6-Jun-06 10087.96 10192.73 9884.89 9957.32

7-Jun-06 9919.28 10051.81 9609.21 9756.76

8-Jun-06 9664.9 9664.9 9200.8 9295.81

9-Jun-06 9270.78 9849.2 9262.2 9810.46

12-Jun-06 9858.47 9859.38 9428.03 9476.15

13-Jun-06 9360.06 9360.06 8993.58 9062.65