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Before, understanding “Recession”, we need to understand the Market Economy
A] TWO STAGES OF MARKET ECONOMY a)Growing Market Economy b)Declining Market Economy

B] TWO FACTORS OF MARKET a)Demand & b)Supply

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A] Growing Market Economy

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B] Declining Market Economy

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TWO FACTORS OF MARKET Producer wants his demand always to be high Actually, Demand is the price Consumer wants his buying cost always to at which be low consumer is ready to buy
and producer is

ready to sell
Demand = Demand =

Usually, we think; Quantity But, here Price; This is because,

Producer Price Consumer Price decides the Quantity of Sales; 6 Price Delhi Institute of Advanced Studies Competitive Price = More Demand;

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WHAT IS RECESSION???
Recession is a contraction phase of the Business

Cycle. It is decline in GDP growth for 2 or more consecutives quarter of a year.
GDP = Value of all the reported goods and services produced by the people operating in the country
GDP = MONEY VALUE OF {C + I + G + (X – M)} C = Consumables, I = Gross Investments, G = Government Spending, X = Exports, M = Imports
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How to come out of recession?

nce, Govt does not have direct control on Producers’ & th nsumers’ behavior; But, they can influence millions of oducers & Consumers with Govt’s policies;

Government has 2 plans Fiscal Policies
(By Govt.)

Monetary Policies
(By RBI)

RBI manipulates Government influences the the available supply of economy by changing how money in the country t (Govt) spends and collects money Delhi Institute of Advanced Studies 9

Business cycle

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SENSEX V/S FII

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US $ V/S Rupee

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Objective
Through this we would focus on the following area
Find out the factor which impact the market most, To find whether they are short term or long term

investor. To know the mindset of investors towards Indian banking system. To analysis the impact of recession on Indian investor & stock market.

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  Research Design
Secondary Research

Collection of data from various websites to understand the relationship between Sensex, US Dollar and FII’S.
Primary Research:  A Primary Research has been conducted.  The questionnaire was prepared for the investors to find out…  Investor’s profile  What impact the Indian stock market.  Their view on Indian banks.  Their Positive-ness for Indian stock market.

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Sampling Plan
Elements:
The target population of the study included the

general population above the age of 25 yrs Sampling design and sampling unit are as follows: Sampling frame- Urban class in the Delhi(NCR) region Sample size: 100

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You hold the stocks for how much time period?

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What significantly impact the Indian stock market?

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To whom you blame for losses you have incurred?

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Will you stay invested in the stock market?

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Which one is your preferred stock in which do you want to invest?

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Which bank do you prefer for deposit?

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Where do you invest?

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Where do you see BSE sensex one year from now?

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When BSE Sensex will reach its all time high of 21000+ ?

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Conclusions
Recession has a huge impact on Indian stock

market. According to investors FII’S are the main factor in fluctuation in indices of Indian stock market. Respondents basically invest their money for a short period of time. They don’t have much knowledge of derivative market. They are not fearful regarding their deposits in any Indian bank. Indian investor have positive mindset regarding Indian stock market.
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Recommendation
SEBI must do something regarding FII’S. SEBI must take some steps to educate Indian

investors so that they will invest after doing proper fundamental & technical analysis of stocks. Investors must invest for long period and invest in various sector(portfolio diversification) to minimize their risk.

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