Presented by: Pradip Gupta

Sujit Kumar
Paromita Sarkar Sudhir Yadav Naresh Sarout Rohit Yadav

TWO STAGES OF MARKET ECONOMY a)Growing Market Economy b)Declining Market Economy

TWO FACTORS OF MARKET a)Demand & b)Supply

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

How to come out of recession?

Government has 2 plans Fiscal Policies

(By Govt.)

Monetary Policies
(By RBI)

Government influences the economy by changing how it (Govt) spends and collects money

RBI manipulates the available supply of money in the country

Recession has a huge impact on Indian stock market. According to investors FIIS are the main factor in fluctuation in indices of Indian stock market. Respondents basically invest their money for a short period of time. They dont have much knowledge of derivative market.

They are not fearful regarding their deposits in any Indian bank.

January 21, 2008 January 22, 2008 February 11, 2008 March 3, 2008 March 17, 2008 10 October, 2008 October 24, 2008

Investors in Indian markets lost more than 16 trillion Rupees in just 2 days !
The ICUs of almost all city hospitals were full

Except for Hindustan Unilever Rest of the Sensex scrips closed in the red, with DLF leading the pack with a loss of 14.9 per cent. In fact, the barrage was so strong that all sectoral indices closed lower in the range of 2-11.6 per cent. The market breadth was sharply negative as 2,332 shares lost ground while only 345 gained. The trading volume dropped to Rs. 6,134.02 crore from Rs. 7,215.42 crore on Wednesday.

 FIIs now own Indian equities worth over $101 billion, the highest in history, according to data released by Sebi. As of 31 May 2011, FII ownership of Indian equities accounted for 16.9% of the market capitalisation of BSE-500 companies.

Since August this year, FIIs have pulled out around Rs 11,360 crore from the equity markets. During the same period, the country's benchmark index, the Sensex, slipped roughly 10%

SEBI must do something regarding FIIS.

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.