133549516 Impact of Recent Global Slump on Indian Capital Market Docx

Impact of recent global slump on Indian capital market

PROJECT REPORT SUBMITTED IN THE PARTIAL FULFILMENT FOR THE

“MASTERS OF BUSINESS ADMINISTRATION”

Submitted to:

MS. SUKHBIR KAUR Submitted by:-

VANDANA

1174501

Malout Institute of Management and Technology

{affiliated to PTU Jalandhar}

1

INDEX

SERIAL

NO.

PARTICULARS PAGE NO.

Declaration 3

Acknowledgement 4

Review of literature 5-10

Objectives 11

Chapter -1 12

1.1 Capital market 13-17

1.2 Recession 18-23

Chapter - 2 24

2.1 Impact of an American Recession on India 25-26

2.2 Indian industries to do well during recession 27-31

Chapter -3 32

3.1 Research methodology 33-34

3.2 Data analysis and interpretation 35-62

3.3 Investors behaviour analysis 63-72

Chapter - 4 73

4.1 limitation 74

4.2 Suggestions 75

4.3 Conclusion 76

4.4 References 77

2

DECLARATION

I undersigned hereby declare that the project report submitted to my college

MIMIT, MALOUT. In partial fulfillment for the degree of Masters of business

administration on “IMPACT OF RECENT GLOBAL SLUMP ON INDIAN

CAPITAL MARKET” is a result of my own work under continuous guidance and

kind co-operation of our college faculty members. I have not submitted this report

to any other university for the award of degree.

VANDANA

ACKNOWLEGEMENT

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This humble endeavor bears the imprint of many persons who were in one way or

the other helpful in the completion of my summer training. I would like to take this

opportunity to present my vote of thanks to my guide Ms. Sukhbir Kaur who

acted as lighting pillars to enlighten my way through out this project. This project

would not have been possible without the kind assistance and guidance of many

people who indeed were helpful, cooperative and kind during the entire course of

our project.

The acknowledgment would not be complete without expressing my indebtedness

to Mr. Sandeep Kumar who guided me in this project and was the constant

source of reference for me and showed full interest at each and every step of our

project.

Vandana

4

REVIEW OF LITERATURE

A study by Prof. Dipika on Global Recession and Impact on Various

Sectors of Indian Economy reached on the following conclusion

the global financial crisis made a hit in the Indian economy. After severe uncertainties in various

sectors such as IT industry in India, Financial market in India, Non availability of global funds

and impact in the export business have given broader outlook to the impact of the global

financial crisis, starting from US and how it had en route to India. All the fields were discussed

with several insights on how the various industries have been affected by this economic

downturn, some had opportunities to grow and some were flattened, since the Indian economy is

one of the emerging economies in the world, which recorded to be the least affected by this

economic crunch. Even government faced a wide range a problems during this credit crunch. The

Indian Government and The Reserve Bank of India, worked collaboratively with consultation

and coordination, after initiating and implementing various processes, rules and acts, kept this

huge economic problem under control. Thus the global economic crisis is inevitable till the

economy of the developed, developing countries become stable and self sustainable. The effects

of the economic downturn are a test to check the financial stabilities in market and regulations

across the global economy.

Vijay Kibe Do a study on India braved the recession better than many other

countries

It may be true with rest of the world but India had some higher immunity to resist the global

meltdown which started in USA in 2007. This financial crisis impacted various economies across

the world; including USA, UK, Japan, China, France and India. During this turmoil the countries

had varying impacts; countries like China and India had a lesser share of the worldwide despair.

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There are many reasons which it has led the world to believe that India survived the global

problem.

Financial policies implemented in India after liberalization in 1991 played an important role in

this perspective. In India we have strictly regulated market by active participation of financial

regulators like Reserve Bank of India, Securities and Exchange Board of India, Ministry of

Finance, Ministry of Corporate Affairs. These regulators ensure that although Indian Markets

have exposure to foreign players but at the same time have lesser vulnerability to global risks.

Participatory Notes (P Notes) is one of the measures taken by Government of India (GOI) to

control the Foreign Institutional Investment (FII). During recession stock markets gets

plummeted if foreign players pull out their investments, P Notes is the key to check that. There

are many such policies which had enabled GOI to run Indian Market as a tight ship. Some of the

major Indian Banks were nationalized in 1969; it facilitated GOI in forcing certain policies like

high Cash to Reserve Ratio (CRR), stringent credit policy and regulation of lending rate. This

control over banks has proven to be a boon to India as recession started in U.S. due to the burst

of Sub Prime Bubble; during this phase, to increase their profits, financial institutions started

lending to the borrowers having lesser credibility at higher rates. In India above policies

prevented Indian Banks from falling into this pitfall.

Apart from these, as compared to countries like USA and UK, people in India are traditionally

less spend thrifty. In India people use their savings in accumulating wealth and making

provisions for rainy day. As per the study published in Global Journal of Finance and

Management, it has been found that Indians have higher risk aversion as compared to their

European and American counterparts. Above study reflects the behavior of Indians in stock

market, that they are less prone to speculative and risky investments. In India people also tend to

put their savings in form of gold which further reduces the risk of losing investment. Gold is

considered to be the best investment during recession times. US economy is having high level of

consumerism which led to the avalanche effect of meltdown. India is still far behind USA in this

aspect. Indian economy is still focusing more on its local markets, which makes it lesser

susceptible to the risk posed by global markets.

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India is one of the largest economies in Purchasing Power Parity Terms. It has made India a

preferred location for Foreign Direct Investment (FDI). Large amount of FDIs make the

economy of India robust and hence more resistant to the global fluctuations. Indian markets are

still untapped at large and hence provide a much greater opportunity. Bigger local markets of

India insulate her from global turmoil up to an extent. In India we still don’t have full Capital

Account Convertibility (CAC). CAC is a nation’s feature to conduct various local financial

transactions at market driven exchange rate. It has again protected India from various market

forces and hence made India immune towards the global turmoil. Indian has broad government

policies targeting the long term growth by facilitating growth in sectors like energy,

infrastructure and manufacturing.

Another aspect of why India survived recession is the poverty prevailing in India. As per the

World Bank Report, 80% of Indian’s population survives on less than 2$ a day. These people

mostly earn their livelihood on daily wages. They are least impacted by any crises, as poor

people will eat pulses and chapatti but if finds pulses are expensive he will switch to other

cheaper alternatives like potato or sometime will have chapatti with just salt. In this way a large

portion of Indian Population is completely immune to any financial turmoil.

India has not only shown greater resistance during financial crises but it was one of the countries

showing the fastest recovery too. This financial crisis displayed the robustness of Indian

economy. It has also helped in further fine tuning our economic policies and changing the vision

of various corporate.

THE IMPACT OF GLOBAL ECONOMIC and FINANCIAL CRISIS (2007-09) IN

INDIA: ANALYSIS AFTER FIVE YEARS   by Adri Mitra brief the impact as

'THE IMPACT OF GLOBAL ECONOMIC & FINANCIAL CRISIS (2007-09) IN INDIA;

ANALYSIS AFTER FIVE YEARS'

The economic & financial crisis during 2007-09, damaged the economy of U.S.A, maximum

Europe countries and countries related with those due to globalization effect. 

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The Indian economy too has felt the impact of that crisis though not to the same extent. Still,

the impact was and is multifold and alive. After Five years of crisis, those effects are being

discussed bellow:

1. Investment: The tumbling economy in the U.S is going to dampen the investment flow. It is

expected that the capital inflows into the country will dry up. Investments in mega projects,

which are under implementation and in the pipeline, are bound to buy more time before

injecting funds into infrastructure and other ventures. The buoyancy in the economy is absent

in all the sectors. Investment in tourism, hospitality and health-care has slowed down. Fresh

investment flows into India is in doubt

2. Real Estate: One of the casualties of the crisis is the real estate. The crisis will hit the Indian

real estate sector hard. The realty sector is witnessing a sudden slump in demand because of the

global economic slowdown. The recession has forced the real estate players to curtail their

expansion plans. Many on-going real estate projects are suffering due to lack of capital, both

from buyers and bankers. Some real traders have already defaulted on delivery dates and

commitments. The steel producers have decided to resort to production cuts following a decline

in demand for the commodity.

3. Exchange Rate: Exchange rate volatility in India has increased in the year 2008-09 compared

to previous years. Massive selling by Foreign Institutional Investors and conversion of their

holdings from rupees to dollars for repatriation has resulted in the rupee depreciating sharply

against the dollar. Between January 1, 2007 and October 16, 2008, the Reserve Bank of India

(RBI) reference rate for the rupee fell by nearly 25 per cent, from INR 39.20 per dollar to INR

48.86. This depreciation may be good for India exports that are adversely affected by the

slowdown in global markets but it is not so good for those who have accumulated foreign

exchange payment commitments.

4. Foreign Exchange Outflow: After the macro-economic reforms in 1991, the Indian economy

has been increasingly integrated with the global economy. The financial institutions in India are

exposed to the world financial market.

Foreign institutional investment (FII) is largely open to India equity, debt markets and market

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for mutual funds. The most immediate effect of the crisis has been an outflow of foreign

institutional investment from the equity market. There is a serious concern about the likely

impact on the economy because of the heavy foreign exchange outflows in the wake of

sustained selling by Foreign Institutional Investors in the stock markets and withdrawal of

funds by others. The crisis resulted in net outflow of $ 10.1billion from the equity and debt

markets in India till the month of October 2008.

5. Stock Market: The financial turmoil affected the stock markets even in India. The

combination of a rapid sell off by financial institutions and the prospect of economic slowdown

have pulled down the stocks and commodities market. Foreign institutional investors pulled out

close to $ 11 billion from India, dragging the capital market down with it. Stock prices have

fallen by 60 per cent. India stock market index (i.e SENSEX) touched above 21,000 mark in

the month of with Foreign Institutional Investment flows into the market. This also has an

effect on the Primary Market. In 2007-08, the net Foreign Institutional Investment inflows into

India amounted to $20.3 billion. As compared to this, they pulled out $11.1 billion during the

first nine-and-a-half months of the calendar year 2008, of which $8.3 billion occurred over the

first six-and-a-half months of the financial year 2008-09

6. Exports: The crisis will sharply contract the demand for exports adversely affecting the

country growth prospects. It will have an impact on merchandise exports and service exports.

The decline in export growth may sharply affect some segments of the Indian Economy that are

export oriented. The slowdown in the world economy has affected the garment industry. which

in turn has affected the apparel industry here in India. The U.S accounts for 55 per cent of all

global apparel imports. The global recession will undermine other major export sectors of the

Indian economy like sea foods, gems and jewelry.

January, 2008 and has plunged below 10,000 during October 2008.The movement of SENSEX

shows a positive and significant relation.

7. Banks: The ongoing crisis will have an adverse impact on some of the Indian banks. Some of

the Indian banks have invested in derivatives which might have exposure to investment bankers

in U.S.A. However, Indian banks in general, have very little exposure to the asset markets of

the developed world. Effectively speaking, the Indian banks and financial institutions have not

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experienced the kind of losses and write-downs that banks and financial institutions in the

Western world have faced. Indian banks have very few branches abroad. Our Indian banks are

slightly better protected from the financial meltdown, largely because of the greater role of the

nationalized banks even today and other controls on domestic finance. Strict regulation and

conservative policies adopted by the Reserve Bank of India have ensured that banks in India

are relatively insulated from the travails of their western counterparts.

8. BPO & KPO / Information Technology: With the global financial system getting trapped in

the quicksand, there is uncertainty across the Indian Software and out sourcing related service

industries. The U.S. banks have huge running relations with Indian Software Companies. A

rough estimate suggests that at least a minimum of 30,000 Indian jobs could be impacted

immediately in the wake of happenings in the U.S. financial system.

Approximately, 61 per cent of the Indian IT Sector revenues are from various small-medium-

large scale commercial firms, financial corporations and banks. The top five Indian players

account for 46 per cent of the IT industry revenues.

9. Increase in Unemployment: One danger is of a dip in the employment market. The global

financial crisis could increase unemployment. Layoffs and wage cuts are certain to take place

in many companies where young employees are working in Business Process Outsourcing and

Information Technology sectors. With job losses, the gap between the rich and the poor will be

widened. It is estimated that there would be downsizing in many other fields as companies cut

costs. The International Labor Organization predicted that millions of jobs will be lost by the

end of 2009 due to the crisis - mostly in construction, real estate, financial services, and the

auto sector. The Global Wage Report 2008-09 of International Labor Organization warns that

tensions are likely to intensify over the issue of wages. There would also be a significant drop

in new hiring. All these will change the complexion of the job market and related fields of

education.

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OBJECTIVES

To study about the impact of global recession on INDIA.

To study about the index fluctuations during recession.

To know about the investors behavior during recession.

11

CHAPTER -1

12

1.1} CAPITAL MARKET

A capital market is a market for securities (debt or equity), where business enterprises

(companies) and governments can raise long-term funds. It is defined as a market in which

money is provided for periods longer than a year, as the raising of short-term funds takes place

on other markets (e.g., the money market). The capital market includes the stock market (equity

securities) and the bond market (debt). Money markets and capital markets are parts of financial

markets. Financial regulators, such as the UK's Financial Services Authority (FSA) or the U.S.

Securities and Exchange Commission (SEC), oversee the capital markets in their designated

jurisdictions to ensure that investors are protected against fraud, among other duties.

STOCK MARKET OR EQUITY SECURITIES:A stock market or equity market is a public

market (a loose network of economic transactions, not a physical facility or discrete entity) for

the trading of company stock and derivatives at an agreed price; these are securities listed on a

stock exchange as well as those only traded privately.

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STOCK MARKET

(EQUITY SECURITIES)

BOND MARKET

(DEBT) CAPITAL MARKET

TYPES OF CAPITAL MARKET

DEBT OR BOND MARKET: The bond market (also known as the debt, credit, or fixed

income market) is a financial market where participants buy and sell debt securities, usually in

the form of bonds.

The Capital market consists of number of individuals and institutions (including the

government) that canalize the supply and demand for longterm capital and claims on capital. The

stock exchange, commercial banks, co-operative banks, saving banks, development banks,

insurance companies, investment trust or companies, etc., are important constituents of the

capital markets.

The capital market, like the money market, has three important Components, namely the

suppliers of loanable funds, the borrowers and the Intermediaries who deal with the leaders on

the one hand and the Borrowers on the other.

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TYPES OF CAPITAL MARKET

PRIMARY MARKET SECONDARY MARKET

PRIMARY MARKET: The primary market is that part of the capital markets that deals

with the issuance of new securities. Companies, governments or public sector institutions can

obtain funding through the sale of a new stock or bond issue. This is typically done through a

syndicate of securities dealers. The process of selling new issues to investors is

called underwriting. In the case of a new stock issue, this sale is an initial public offering (IPO).

Dealers earn a commission that is built into the price of the security offering, though it can be

found in the prospectus. Primary markets create long term instruments through which corporate

entities borrow from capital market.

FEATURES OF PRIMARY MARKET:

This is the market for new long term equity capital. The primary market is the market where

the securities are sold for the first time. Therefore it is also called the new issue market

(NIM).

In a primary issue, the securities are issued by the company directly to investors.

The company receives the money and issues new security certificates to the investors.

Primary issues are used by companies for the purpose of setting up new business or for

expanding or modernizing the existing business.

The primary market performs the crucial function of facilitating capital formation in the

economy.

The new issue market does not include certain other sources of new long term external

finance, such as loans from financial institutions. Borrowers in the new issue market may be

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raising capital for converting private capital into public capital; this is known as "going

public."

The financial assets sold can only be redeemed by the original holder.

METHODS OF ISSUING SECURITIES IN THE PRIMARY MARKET :

Public issuance, including initial public offering;

Rights issue (for existing companies);

Preferential issue.

SECONDARY MARKET: The secondary market, also called aftermarket, is the financial

market in which previously issued financial instruments such as stock, bonds, options,

and futures are bought and sold. Another frequent usage of "secondary market" is to refer to

loans which are sold by a mortgage bank to investors such as Fannie Mae and Freddie Mac.

The term "secondary market" is also used to refer to the market for any used goods or

assets, or an alternative use for an existing product or asset where the customer base is

the second market (for example, corn has been traditionally used primarily for food

production and feedstock, but a "second" or "third" market has developed for use in

ethanol production).

With primary issuances of securities or financial instruments, or the primary market,

investors purchase these securities directly from issuers such

as corporations issuing shares in an IPO or private placement, or directly from the federal

government in the case of treasuries. After the initial issuance, investors can purchase

from other investors in the secondary market.

The secondary market for a variety of assets can vary from loans to stocks, from

fragmented to centralized, and from illiquid to very liquid. The major stock exchanges

are the most visible example of liquid secondary markets - in this case, for stocks of

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publicly traded companies. Exchanges such as the New York Stock

Exchange, Nasdaq and the American Stock Exchange provide a centralized, liquid

secondary market for the investors who own stocks that trade on those exchanges. Most

bonds and structured products trade “over the counter,” or by phoning the bond desk of

one’s broker-dealer. Loans sometimes trade online using a Loan Exchange.

FUNCTION

In the secondary market, securities are sold by and transferred from

one investor or speculator to another. It is therefore important that the secondary market be

highly liquid (originally, the only way to create this liquidity was for investors and speculators to

meet at a fixed place regularly; this is how stock exchanges originated. As a general rule, the

greater the number of investors that participate in a given marketplace, and the greater the

centralization of that marketplace, the more liquid the market.

Fundamentally, secondary markets mesh the investor's preference for liquidity (i.e., the

investor's desire not to tie up his or her money for a long period of time, in case the

investor needs it to deal with unforeseen circumstances) with the capital user's preference

to be able to use the capital for an extended period of time.

Accurate share price allocates scarce capital more efficiently when new projects are

financed through a new primary market offering, but accuracy may also matter in the

secondary market because: 1) price accuracy can reduce the agency costs of management,

and make hostile takeover a less risky proposition and thus move capital into the hands of

better managers, and 2) accurate share price aids the efficient allocation of debt finance

whether debt offerings or institutional borrowing.

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1.2} RECESSION

 Recession is a business cycle contraction, a general slowdown in economic

activity. Macroeconomic indicators such as GDP, employment, investment spending,capacity

utilization, household income, business profits, and inflation fall, while bankruptcies and

the unemployment rate rise.

Recessions generally occur when there is a widespread drop in spending (an adverse demand

shock). This may be triggered by various events, such as a financial crisis, an external trade

shock, an adverse supply shock or the bursting of an economic bubble. Governments usually

respond to recessions by adopting expansionary macroeconomic policies, such as increasing

money supply, increasing government spending and decreasing taxation. A recession has many

attributes that can occur simultaneously and includes declines in component measures of

economic activity (GDP) such as consumption, investment, government spending, and net export

activity. These summary measures reflect underlying drivers such as employment levels and

skills, household savings rates, corporate investment decisions, interest rates, demographics, and

government policies.

A Recession is a contraction phase of the business cycle.

R ecession is the economy shrinking for consecutive quarters (=6 months) with a decrease in the

GDP (=Gross Domestic Product).

GDP = Value of all the reported goods and services produced by the people operating in the

country.

National Bureau of Economic Research (NBER) is the official agency in charge of declaring

that the economy is in a state of recession.

They define recession as :

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“significant decline in economic activity lasting more than a few months, which is normally

visible in real GDP, real income, employment, industrial production, and wholesale-retail

sales”.

An economy typically expands for 6-10 years and tends to go into a recession for about

six months to 2 years.

A recession normally takes place when consumers loose confidence in the growth of the

economy and spend less.

This leads to a decreased demand for goods and services, which in turn leads to a

decrease in production, lay-offs and a sharp rise in unemployment.

Investors spend less as they fear stocks values will fall and thus stock markets fall on

negative sentiment.

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Causes of Recessions:

• Currency crises

• Energy crisis

• Under-consumption

• Overproduction

• Financial crisis

Currency crises:

A Currency crisis, which is also called a balance-of-payments crisis, occurs when the

value of a currency changes quickly, undermining its ability to serve as a medium of

exchange or a store of value. It is a type of financial crisis and is often associated with a real

economic crisis. During recession value of money decrease…

20

Energy crisis:

An Energy crisis is any great bottleneck (or price rise) in the supply of energy resources to

an economy. It usually refers to the shortage of oil and additionally to electricity or other

natural resources. An energy crisis may be referred to as an oil crisis, petroleum crisis,

energy shortage, or electricity crisis. During recession there was rapid increase in the

Prices of fuels.

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Under-consumption:

In Under-consumption , recessions and stagnation arise due to inadequate consumer

demand relative to the amount produced.

In recession there was a less consumption

of good…

Overproduction:

In economics, Overproduction refers to excess of supply over demand of products being offered

to the market. This leads to lower prices and / or unsold goods.

22

Financial crisis:

The term Financial crisis is applied broadly to a variety of situations in which some financial

institutions or assets suddenly lose a large part of their value During recession there was sudden

decrease in sensex …

23

CHAPTER - 2

2.1} Impact of an American Recession on India

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Indian companies have major outsourcing deals from the US. India's exports to the US

have also grown substantially over the years. The India economy is likely to lose between

1 to 2 percentage points in GDP growth in the next fiscal year. Indian companies with big

tickets deals in the US would see their profit margins shrinking.

The worries for exporters will grow as rupee strengthens further against the dollar. But

experts note that the long-term prospects for India are stable. A weak dollar could bring

more foreign money to Indian markets. Oil may get cheaper brining down inflation. A

recession could bring down oil prices to $70.

The whole of Asia would be hit by a recession as it depends on the US economy. Even

though domestic demand and diversification of trade in the Asian region will partly

counter any drop in the US demand, one simply can't escape a downturn in the world's

largest economy. The US economy accounts for 30 per cent of the world's GDP.

Says Sudip Bandyopadhyay, director and CEO, Reliance Money: "In the globalised

world, complete decoupling is impossible. But India may remain relatively less affected

by adverse global events." In fact, many small and medium companies have already

started developing trade ties with China and European countries to ward off big losses.

Manish Sonthalia, head, equity, Motilal Oswal Securities, says if the US economy

contracts much more than anticipated, the whole world's GDP growth-which is estimated

at 3.7 per cent by the IMF-will contract, and India would be no exception. The only silver

lining is that the recession will happen slowly, probably in six months or so. As of now,

IT and IT-enabled services, textiles, jewelery, handicrafts and leather segments will

suffer losses because of their trade link. Certain sections of commodities could face sharp

impact due to the volatile nature of these sectors. C.J. George, managing director, Geojit

Financial Services, says profits of lots of re-export firms may be affected. Countries like

China import commodities from India do some value-addition and then export them to

the US.

The IT sector will be the worst hit as 75 per cent of its revenues come from the US. Low

demand for services may force most Indian Fortune 500 companies to slash their IT

25

budgets. Zinnov Consulting, a research and offshore advisory, says that besides

companies from ITeS and BPO, automotive components will be affected.

During a full recession, US companies in health care, financial services and all

consumers demand driven firms are likely to cut down on their spending. Among other

sectors, manufacturing and financial institutions are moderately vulnerable. If the service

sector takes a serious hit, India may have to revise its GDP to about 8 to 8.5 per cent or

even less.

Lokendra Tomar, senior vice-president, Integreon, a BPO firm, says the US recession is

likely to have a dual impact on the outsourcing industry. Appreciating rupee along with

poor performance of US companies (law firms, investment banks and media houses) will

affect the bottom line of the outsourcing industry. Small BPOs, which are operating at a

net margin of 7-8 per cent, will find it difficult to survive.

According to Dharmakirti Joshi, director and principal economist of CRISIL, along and

severe recession will seriously affect the portfolio and fixed investment flows. Corporates

will also suffer from volatility in foreign exchange rates. The export sector will have to

devise new strategies to enhance productivity.

2.2} Indian industries to do well during recession

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In the current global economic slowdown, every sector of business is being affected and is

witnessing a hard time. But IKON Marketing Consultants reports that in India there are few

sectors which will grow in this adverse situation.

AS EVERY business sector is affected by present global crisis and everybody is talking of slow

down in business, still in India there are few sectors which will grow in this adverse situation.

Let’s have a look.

1. Food

No one can survive without basic food material like milk, vegetables and drinking water. Food

processing companies will not be affected much and rather will earn profits by increasing the

prices. These are the basic needs which we as a common man can not produce by our self.

According to Ministry of Food Processing Industry (MFPI), the food processing industry in India

was seeing growth even as the world was facing economic recession. According to the minister,

the industry is presently growing at 14 per cent against six to seven per cent growth in 2003–

04.The Indian food market is estimated at over US$ 182 billion and accounts for about two thirds

of the total Indian retail market. Further, the retail food sector in India is likely to grow from

around US$ 70 billion in 2008 to US$ 150 billion by 2025.

2. Railway

As the aviation sector has been affect much badly and resulting in sharp rise in the air ticket rates

the frequent travelers’ will prefer railways to cut the cost of traveling and this will result in

increased traffic in railways and long queues at railway booking counters. The freight traffic of

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Indian Railways has continued to grow in the last few months, albeit at slow pace, indicating

only marginal impact of the global recession on the Indian economy.

The railways registered 13.87 per cent growth in revenue to Rs 57,863.90 crore in the first nine

months ended December 31, 2008. While total earnings from freight increased by 14.53 per cent

at Rs 39,085.22 crore during the period, passenger revenue earnings were up 11.81 per cent at Rs

16,242.44 crore. The railways have enhanced freight revenue by increasing its axle loading,

improving customer services and adopting an innovative pricing strategy.

3. PSU Banks

As seen in the private sector much of the job cuts due to global slowdown, it’s the public sector

undertaking (PSU) banks which gained much confidence due to job safety and security. More

and more people are likely to turn towards government institutions, particularly banks in the

quest for safety and security.

A report "Opportunities in Indian Banking Sector", by market research company, RNCOS,

forecasts that the Indian banking sector will grow at a healthy compound annual growth rate

(CAGR) of around 23.3 per cent till 2011.

4. Education

As education is considered as the basic necessity and in India it is seen as a long term investment

by parents and with respect to the demand still there is a huge supply gap. The craze to study in

foreign university among the Indian youth still alive which will prompt foreign education

institute to target India provided vast young population willing to join. We will see more and

more foreign educational institutions coming up in India in recent coming years.

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Huge government as well as private investment is likely to flow into the Indian educational

system. D E Shaw, a US$ 36 billion, global private equity firm is planning to invest around US$

200 million in the Indian education sector.

5. Telecom

People will not stop to communicate with each other due to global crises rather it has been seen

that it will increase much particularly with mobile communication. With cheap cell phones

available in the Indian market and cheaper call rates, the sector has become the necessity and

primary need of everyday life.

Telecom sector, according to industry estimates, year 2008 started with a subscriber base of 228

million and will likely to end with a subscriber base of 332 million – a full century. The telecom

industry expects to add at least another 90 million subscribers in 2009 despite of recession. The

Indian telecommunications industry is one of the fastest growing in the world and India is

projected to become the second largest telecom market globally by 2010.

6. IT

Recent news shown that Indian IT sector will grow 30 to 40 per cent next year. And on the other

side to survive in current slowdown, industries have to decrease the cost and for that they will

resort to customised IT solutions which will further boost up the software solution demand.

India is fast becoming a hot destination for outsourced e-publishing work. As per a

Confederation of Indian Industry (CII) report, the industry is growing at an annual rate of 35 per

cent and India’s outsourcing opportunities in the value-added and core services such as copy

editing, project management, indexing, media services and content deployment will help make

the publishing BPO industry worth US$ 1.46 billion by 2010.

29

7. Health care

India in case of health care facilities still lakes the adequate supply. In health care sector also

there is huge gap between demand and supply at all the levels of society. Still there are so many

urban areas were you could hardly find any multi specialty hospital. And in case of metros the

market sentiments itself created a need of psychological consultation.

Healthcare, which is a US$ 35 billion industry in India, is expected to reach over US$ 75 billion

by 2012 and US$ 150 billion by 2017. The healthcare industry is interestingly poised as it strives

to emerge as a global hub due to the distinct advantages it enjoys in clinical excellence and low

costs.

8. Luxury products

The high and affluent class of society will not be affected much by this global crises even if their

worth is reduced significantly. They will not change their lifestyle and will not stop spending on

luxurious goods. So luxurious product market will not be affected and in fact to maintain the

lifestyle those affluent will spend more for it. Luxury car makers are pouring in to woo the

nouveau riche (Audi, BMW are the most recent entrants).

9. M&A & Marketing Consultants

As in the current business slow down survival will be the main focus, the marketing and

management consultants will be called for to reduce the costs and to show the ways to survive

and stay in market. Others may join hands to fight with this situation together will call for the

Marketing & M&A consultants. In a booming market there are growth strategies and M&A

opportunities to advise on. When businesses are cutting back, consultancies will be right there to

help clients decide where to wield the axe.

30

According to Ministry of Commerce and Industry’s estimation, the current size of consulting

industry in India is about Rs 10000 crores including exports and is expected to grow further at a

CAGR of aproximately 25 per cent in next few years.

10. Media and Entertainment

In current bad times, where people are losing jobs and getting enough time to watch TV, they

will seek entertainment at home and hence advertising revenues will increase for the commercial

channels. Also businesses like production of religious texts and religious materials, religious

channels will do well. The TRP of religious channels will increase compare to the other

entertaining/commercial channels.

According to a report published by the Federation of Indian Chambers of Commerce and

Industry (FICCI), the Indian M&E industry is expected to grow at a compound annual growth

rate (CAGR) of 18 per cent to reach US$ 23.81 billion by 2012. According to the PWC report,

the television industry was worth US$ 5. 48 billion in 2007, recording a growth of 18 per cent

over 2006. It is further likely to grow by 22 per cent over the next five years and be worth US$

12. 34 billion by 2012.

31

CHAPTER - 3

3.1}RESEARCH METHODOLOGY

32

Research is a procedure of logical and systematic application of the fundamentals of science to

the general and overall questions of a study and scientific technique by which provide precise

tools, specific procedures and technical, rather than philosophical means for getting and ordering

the data prior to their logical analysis and manipulations.

Different type of research design is available depending upon the nature of research project,

availability of able manpower and circumstances.

The study about The impact of recent global slump on Indian capital market is exploratory as

well as descriptive in nature .Discussion with experts, internet surfing, and journals were studied

to explore more about the concerned objective and better understanding of the problem. After

that questionnaire was prepared to meet the desired objective

Sources of Data:

The source of data includes primary and secondary data sources.

Primary Sources

Primary data is data collected specially for the purpose for which study is being conducted i.e.

the problem under study..

Secondary Sources

The secondary data is data, which is collected and compiled for the different purpose, which are

used in research for this study. The secondary data include material collected from:

- Newspaper

- Magazine.

- Internet.

Data Collection Instruments

33

The various methods of data gathering involves the use of appropriate recording forms. These

are called ‘tools’ or ‘instruments of data collection. Data was collected through structured

questionnaire administered by sitting with guide and discussing problems

Sampling Technique

The small representative selected out of large population is selected at random is called sample.

Well-selected sample may reflect fairly, accurately the characteristic of population. The chief

aim of sampling is to make an inference about unknown parameters from a measurable sample

statistics. Sampling technique used was judgement and Snowball sampling was used for the

purpose of data collection as reference was taken form sample to reach other sample.

Sample Size : Sample size refers to the number of items to be selected from the universe to

constitute a sample. Due to constraints of cost and time, the sample size selected for the research

is 50. From Malout ,Abohar and Bathinda

Sampling Unit : The sampling unit was the person who was investing in stock market From

Malout ,Abohar and Bathinda .

3.2} DATA ANALYSIS AND INTERPATION

Stock market and recession

34

Some recessions have been anticipated by stock market declines. In Stocks for the Long Run, Siegel

mentions that since 1948, ten recessions were preceded by a stock market decline, by a lead time of 0 to

13 months (average 5.7 months), while ten stock market declines of greater than 10% in the DJIA were

not followed by a recession. The real-estate market also usually weakens before a recession. However

real-estate declines can last much longer than recessions.

Since the business cycle is very hard to predict, Siegel argues that it is not possible to take

advantage of economic cycles for timing investments. Even the National Bureau of Economic

Research (NBER) takes a few months to determine if a peak or trough has occurred in the US.

During an economic decline, high yield stocks such as fast moving consumer goods,

pharmaceuticals, and tobacco tend to hold up better. However when the economy starts to

recover and the bottom of the market has passed (sometimes identified on charts as a MACD),

growth stocks tend to recover faster. There is significant disagreement about how health care and

utilities tend to recover. Diversifying one's portfolio into international stocks may provide some

safety; however, economies that are closely correlated with that of the U.S. may also be affected

by a recession in the U.S.

There is a view termed the halfway rule according to which investors start discounting an

economic recovery about halfway through a recession. In the 16 U.S. recessions since 1919, the

average length has been 13 months, although the recent recessions have been shorter. Thus if the

2008 recession followed the average, the downturn in the stock market would have bottomed

around November 2008.

Impact of global recession on indian stock market can be seen in following data. Which include

indices of India; sensex and nifty also some of the blue chip companies.

Indices :SENSEX

35

Period : Jan 07 to Jan 11

Month Open High Low Close Trade(cr.

Jan 07 13,827.77 14,325.92 13,303.22 14,090.92 29.86

Feb 07 14,124.36 14,723.88 12,800.91 12,938.09 32.56

Mar 07 13,013.74 13,386.95 12,316.10 13,072.10 37.52

Apr 07 12,811.93 14,383.72 12,425.52 13,872.37 35.26

May07 13,987.77 14,576.37 13,554.34 14,544.46 31.03

Jun 07 14,610.28 14,683.36 13,946.99 14,650.51 29.02

Jul 07 14,685.16 15,868.85 14,638.88 15,550.99 39.11

Aug 07 15,344.02 15,542.40 13,779.88 15,318.60 35.24

Sep 07 15,401.99 17,361.47 15,323.05 17,291.10 38.97

Oct 07 17,356.99 20,238.16 17,144.58 19,837.99 64.13

Nov 07 20,130.23 20,204.21 18,182.83 19,363.19 35.79

Dec 07 19,547.09 20,498.11 18,886.40 20,286.99 25.27

Jan 08 20,325.27 21,206.77 15,332.42 17,648.71 46.60

Feb 08 17,820.67 18,895.34 16,457.74 17,578.72 32.59

Mar 08 17,227.56 17,227.56 14,677.24 15,644.44 44.60

Apr 08 15,771.72 17,480.74 15,297.96 17,287.31 39.77

May08 17,560.15 17,735.70 16,196.02 16,415.57 38.44

Jun 08 16,591.46 16,632.72 13,405.54 13,461.60 48.91

Jul 08 13,480.02 15,130.09 12,514.02 14,355.75 67.04

36

Aug 08 14,064.26 15,579.78 14,002.43 14,564.53 47.26

Sep 08 14,412.99 15,107.01 12,153.55 12,860.43 62.95

Oct 08 13,006.72 13,203.86 7,697.39 9,788.06 88.28

Nov 08 10,209.37 10,945.41 8,316.39 9,092.72 83.71

Dec 08 9,162.94 10,188.54 8,467.43 9,647.31 116.62

Jan 09 9,720.55 10,469.72 8,631.60 9,424.24 111.01

Feb 09 9,363.58 9,724.87 8,619.22 8,891.61 66.69

Mar 09 8,762.88 10,127.09 8,047.17 9,708.50 86.75

Apr 09 9,745.77 11,492.10 9,546.29 11,403.25 86.01

May09 11,635.24 14,930.54 11,621.30 14,625.25 105.10

Jun 09 14,746.51 15,600.30 14,016.95 14,493.84 86.36

Jul 09 14,506.43 15,732.81 13,219.99 15,670.31 80.10

Aug 09 15,694.78 16,002.46 14,684.45 15,666.64 59.87

Sep 09 15,691.27 17,142.52 15,356.72 17,126.84 55.03

Oct 09 17,186.20 17,493.17 15,805.20 15,896.28 57.01

Nov 09 15,838.63 17,290.48 15,330.56 16,926.22 47.80

Dec 09 16,947.46 17,530.94 16,577.78 17,464.81 40.03

Jan 10 17,473.45 17,790.33 15,982.08 16,357.96 39.15

Feb 10 16,339.32 16,669.25 15,651.99 16,429.55 35.39

Mar 10 16,438.45 17,793.01 16,438.45 17,527.77 36.86

Apr 10 17,555.04 18,047.86 17,276.80 17,558.71 25.99

May10 17,536.86 17,536.86 15,960.15 16,944.63 39.88

Jun 10 16,942.82 17,919.62 16,318.39 17,700.90 50.02

37

Jul 10 17,679.34 18,237.56 17,395.58 17,868.29 33.06

Aug 10 17,911.31 18,475.27 17,819.99 17,971.12 31.10

Sep 10 18,027.12 20,267.98 18,027.12 20,069.12 33.49

Oct 10 20,094.10 20,854.55 19,768.96 20,032.34 28.91

Nov 10 20,272.49 21,108.64 18,954.82 19,521.25 28.96

Dec 10 19,529.99 20,552.03 19,074.57 20,509.09 29.21

Jan 11 20,621.61 20,664.80 18,038.48 18,327.76 31.27

Feb 11 18,425.18 18,690.97 17,295.62 17,823.40 43.42

Mar 11 17,982.28 19,575.16 17,792.17 19,445.22 37.51

In year 2007 Sensex index of BSE determined by the performance of 30 companies was on

increasing trend and from 13827 it reached at 20498. As recession phase started it goes on

decreasing trend and reached at89162 in the end of 2008 and after this phase it started recovery

and reached at 20552 at the and of 2010. So this data shows that the global recession puts an

impact on Indian market and it suffers a lot

NIFTY 2007-2011

Prices

Date Open High Low Close Avg Vol Adj Close*

Dec, 2011 4,936.85 5,062.60 4,544.20 4,624.30 0 4,624.30

Nov, 2011 5,257.95 5,289.35 4,706.45 4,832.05 0 4,832.05

Oct, 2011 4,849.50 5,360.70 4,751.30 5,326.60 0 5,326.60

38

Sep, 2011 5,040.00 5,153.25 4,835.40 4,943.25 0 4,943.25

Aug, 2011 5,516.80 5,516.80 4,747.80 5,001.00 0 5,001.00

Jul, 2011 5,627.20 5,728.95 5,482.00 5,482.00 0 5,482.00

Jun, 2011 5,592.00 5,647.40 5,257.90 5,647.40 0 5,647.40

May, 2011 5,701.30 5,701.30 5,348.95 5,560.15 0 5,560.15

Apr, 2011 5,826.05 5,911.50 5,729.10 5,749.50 0 5,749.50

Mar, 2011 5,522.30 5,833.75 5,364.75 5,833.75 0 5,833.75

Feb, 2011 5,417.20 5,546.45 5,225.80 5,333.25 0 5,333.25

Jan, 2011 6,157.60 6,157.60 5,505.90 5,505.90 0 5,505.90

Dec, 2010 5,960.90 6,134.50 5,766.50 6,134.50 0 6,134.50

Nov, 2010 6,117.55 6,312.45 5,751.95 5,862.70 0 5,862.70

Oct, 2010 6,143.40 6,233.90 5,982.10 6,017.70 0 6,017.70

Sep, 2010 5,471.85 6,035.65 5,471.85 6,029.95 0 6,029.95

Aug, 2010 5,431.65 5,543.50 5,402.40 5,402.40 0 5,402.40

Jul, 2010 5,251.40 5,449.10 5,235.90 5,367.60 0 5,367.60

Jun, 2010 4,970.20 5,353.30 4,970.20 5,312.50 0 5,312.50

May, 2010 5,222.75 5,222.75 4,806.75 5,086.30 0 5,086.30

Apr, 2010 5,290.50 5,374.65 5,203.65 5,278.00 0 5,278.00

Mar, 2010 5,017.00 5,302.85 5,017.00 5,249.10 0 5,249.10

Feb, 2010 4,899.70 4,931.85 4,718.65 4,922.30 0 4,922.30

Jan, 2010 5,232.20 5,281.80 4,853.10 4,882.05 0 4,882.05

Dec, 2009 5,122.00 5,201.05 4,952.60 5,201.05 0 5,201.05

Nov, 2009 4,563.90 5,108.15 4,563.90 5,032.70 0 5,032.70

Oct, 2009 5,083.40 5,142.15 4,711.70 4,711.70 0 4,711.70

39

Sep, 2009 4,625.35 5,083.95 4,593.55 5,083.95 0 5,083.95

Aug, 2009 4,711.40 4,732.35 4,387.90 4,662.10 0 4,662.10

Jul, 2009 4,340.90 4,636.45 3,974.05 4,636.45 0 4,636.45

Jun, 2009 4,529.90 4,655.25 4,235.25 4,291.10 0 4,291.10

May, 2009 3,654.00 4,448.95 3,554.60 4,448.95 0 4,448.95

Apr, 2009 3,060.35 3,484.15 3,060.35 3,473.95 0 3,473.95

Mar, 2009 2,674.60 3,108.65 2,573.15 3,020.95 0 3,020.95

Feb, 2009 2,766.65 2,948.35 2,733.90 2,763.65 0 2,763.65

Jan, 2009 3,033.45 3,121.45 2,678.55 2,874.80 0 2,874.80

Dec, 2008 2,682.90 3,077.50 2,656.45 2,959.15 0 2,959.15

Nov, 2008 3,043.85 3,148.25 2,553.15 2,755.10 0 2,755.10

Oct, 2008 3,950.75 3,950.75 2,524.20 2,885.60 0 2,885.60

Sep, 2008 4,348.65 4,504.00 3,850.05 3,921.20 0 3,921.20

Aug, 2008 4,413.55 4,620.40 4,214.00 4,360.00 0 4,360.00

Jul, 2008 3,896.75 4,476.80 3,816.70 4,332.95 0 4,332.95

Jun, 2008 4,739.60 4,739.60 4,040.55 4,040.55 0 4,040.55

May, 2008 5,228.20 5,228.20 4,835.30 4,870.10 0 4,870.10

Apr, 2008 4,739.55 5,195.50 4,647.00 5,165.90 0 5,165.90

Mar, 2008 4,953.00 4,953.00 4,503.10 4,734.50 0 4,734.50

Feb, 2008 5,317.25 5,483.90 4,838.25 5,223.50 0 5,223.50

Jan, 2008 6,144.35 6,287.85 4,899.30 5,137.45 0 5,137.45

Dec, 2007 5,865.00 6,159.30 5,742.30 6,138.60 0 6,138.60

Nov, 2007 5,866.45 5,937.90 5,519.35 5,762.75 0 5,762.75

Oct, 2007 5,068.95 5,905.90 5,068.95 5,900.65 0 5,900.65

40

Sep, 2007 4,474.75 5,021.35 4,474.75 5,021.35 0 5,021.35

Aug, 2007 4,464.00 4,464.00 4,464.00 4,464.00 0 4,464.00

Nifty is the index of NSE and reflects the performance of 50 listed companies same as sensex it

also shows a down phase in recession period. At the end of 2007 it was on 6159 whereas at the

end of 2008 it moves to 2682 and later on start recovering and reached to 6134 at the end of 2010

Blue chip companies

Performance of some of the blue chip companies{major players} of India during recession and

their recovery can be seen from there share prices from 2007-2011 given below. Companies are:-

NTPC

ONGC

IOC

SBI

RELIANCE

ICICI

BHARTI AIRTEL

41

NTPC

Prices

Date Open High Low Close Avg Vol Adj Close*

2 Jan, 2012 160.85 178.90 155.05 172.20 2,930,000 171.69

1 Dec, 2011 165.80 177.45 154.10 160.85 2,364,900 157.10

1 Nov, 2011 179.05 181.65 152.05 162.35 2,323,200 158.57

3 Oct, 2011 165.50 183.40 161.85 179.25 2,799,500 175.08

08-Sep-2011 0.80 Dividend

2 Sep, 2011 174.80 174.80 160.00 167.65 2,697,900 163.75

1 Aug, 2011 177.20 181.90 162.55 169.55 2,454,500 164.81

1 Jul, 2011 187.00 192.45 175.50 176.10 2,741,900 171.18

1 Jun, 2011 169.55 188.60 169.55 186.90 2,311,500 181.68

2 May, 2011 181.55 183.35 165.15 168.25 3,901,300 163.55

1 Apr, 2011 193.00 193.10 181.30 182.30 1,416,200 177.21

1 Mar, 2011 172.05 195.00 170.70 193.10 1,816,500 187.71

04-Feb-2011 3.00 Dividend

1 Feb, 2011 189.25 190.75 168.30 169.85 2,071,000 165.10

3 Jan, 2011 201.40 203.20 185.00 189.05 2,194,500 180.74

1 Dec, 2010 184.00 203.80 182.00 200.65 2,422,400 191.83

42

1 Nov, 2010 198.10 198.10 175.35 184.00 3,029,300 175.92

1 Oct, 2010 217.85 222.30 192.30 195.30 3,853,100 186.72

08-Sep-2010 0.80 Dividend

1 Sep, 2010 196.10 221.20 190.10 216.95 3,916,800 207.42

2 Aug, 2010 200.00 201.00 192.20 195.95 1,394,300 186.59

1 Jul, 2010 199.00 206.00 197.30 198.75 1,696,100 189.26

1 Jun, 2010 203.00 204.90 194.10 199.60 1,880,500 190.07

3 May, 2010 206.40 208.45 190.10 202.30 2,883,200 192.64

1 Apr, 2010 207.25 212.55 202.90 207.55 2,266,300 197.64

18-Mar-2010 3.00 Dividend

1 Mar, 2010 203.00 208.35 198.05 207.25 3,311,100 197.35

1 Feb, 2010 217.00 227.45 197.00 203.05 3,398,600 190.51

1 Jan, 2010 236.55 238.90 222.30 227.45 2,777,500 213.40

1 Dec, 2009 211.00 241.35 205.25 236.55 4,016,000 221.94

2 Nov, 2009 211.50 220.10 201.70 210.00 2,843,700 197.03

1 Oct, 2009 213.50 222.00 205.10 211.50 3,296,700 198.44

03-Sep-2009 0.80 Dividend

1 Sep, 2009 212.50 215.30 203.25 214.20 3,208,900 200.97

3 Aug, 2009 215.10 220.45 201.05 212.05 3,542,100 198.18

1 Jul, 2009 198.70 225.00 188.50 216.50 5,566,400 202.34

1 Jun, 2009 218.80 233.00 182.00 194.95 11,182,600 182.20

1 May, 2009 190.05 225.00 185.65 215.25 7,656,100 201.18

1 Apr, 2009 180.50 205.80 176.05 190.05 5,822,500 177.62

43

2 Mar, 2009 182.00 186.90 167.25 179.95 5,594,400 168.18

2 Feb, 2009 188.50 189.50 171.10 185.90 4,926,600 173.74

29-Jan-2009 2.80 Dividend

1 Jan, 2009 180.60 193.10 165.25 189.75 6,055,400 177.34

1 Dec, 2008 158.00 192.00 151.20 180.95 6,288,500 166.64

3 Nov, 2008 145.00 166.40 130.40 158.00 8,173,900 145.51

1 Oct, 2008 173.00 183.90 113.00 141.70 7,832,200 130.50

1 Sep, 2008 173.95 192.00 159.00 172.40 6,619,200 158.77

28-Aug-2008 0.80 Dividend

1 Aug, 2008 172.10 189.75 166.35 174.70 5,434,200 160.89

1 Jul, 2008 152.10 196.90 150.00 170.10 7,575,100 155.92

2 Jun, 2008 172.35 173.55 148.00 152.50 6,396,700 139.79

1 May, 2008 196.90 202.90 168.10 171.60 8,046,400 157.29

1 Apr, 2008 199.00 202.90 182.00 196.90 6,467,300 180.49

3 Mar, 2008 199.60 206.10 161.30 195.55 7,469,200 179.25

04-Feb-2008 2.70 Dividend

1 Feb, 2008 199.00 227.40 182.10 200.80 8,893,600 184.06

1 Jan, 2008 253.00 290.75 166.05 196.90 16,430,600 178.11

3 Dec, 2007 238.00 253.85 225.00 251.50 6,997,700 227.50

1 Nov, 2007 242.95 283.30 219.55 237.65 11,688,800 214.97

1 Oct, 2007 195.25 243.00 192.15 239.05 12,234,700 216.24

3 Sep, 2007 174.00 200.00 172.50 194.55 8,296,600 175.98

31 Aug, 2007 167.90 174.90 165.70 173.00 9,283,600 156.49

44

ONGC

Prices

Date Open High Low Close Avg Vol Adj Close*

1 Dec, 2011 273.15 277.80 244.75 256.60 2,061,100 242.60

1 Nov, 2011 275.55 288.05 241.75 266.75 2,749,700 252.20

3 Oct, 2011 263.00 294.80 259.75 277.65 2,958,600 262.50

2 Sep, 2011 272.00 280.55 253.25 266.10 6,119,800 251.58

18-Aug-2011 0.75 Dividend

1 Aug, 2011 271.15 290.15 260.00 263.70 4,218,900 249.31

1 Jul, 2011 290.90 290.90 268.40 269.25 3,469,600 253.87

1 Jun, 2011 283.00 297.50 248.05 274.25 4,705,800 258.59

2 May, 2011 309.00 315.80 261.40 281.05 5,691,200 265.00

1 Apr, 2011 292.50 325.65 278.55 307.80 3,542,800 290.22

1 Mar, 2011 273.00 294.20 262.00 291.30 3,350,800 274.66

08-Feb-2011 2: 1 Stock Split

1 Feb, 2011 297.75 308.29 260.10 270.35 5,073,500 254.91

3 Jan, 2011 326.00 326.00 275.67 294.45 5,204,200 138.82

1 Dec, 2010 312.50 340.96 311.62 322.05 4,011,200 151.83

1 Nov, 2010 331.00 349.00 298.00 311.33 3,077,100 146.77

1 Oct, 2010 351.59 361.10 322.50 326.01 3,949,500 153.70

09-Sep-2010 15.00 Dividend

45

1 Sep, 2010 337.40 368.15 330.00 351.02 4,845,900 165.49

2 Aug, 2010 310.00 339.98 302.00 334.40 3,806,500 150.67

1 Jul, 2010 330.20 336.73 305.00 310.17 4,286,800 139.76

1 Jun, 2010 292.50 332.85 285.00 330.20 6,526,200 148.78

3 May, 2010 262.50 294.41 253.00 291.92 5,955,300 131.53

1 Apr, 2010 275.25 277.50 249.00 263.70 3,389,300 118.82

2 Mar, 2010 280.02 284.65 261.29 274.67 3,868,800 123.76

1 Feb, 2010 299.50 299.50 266.25 279.40 2,074,500 125.89

1 Jan, 2010 295.50 311.69 294.00 299.50 1,942,400 134.95

22-Dec-2009 18.00 Dividend

1 Dec, 2009 301.00 304.25 288.19 295.50 2,483,500 133.14

2 Nov, 2009 283.49 302.95 276.30 299.50 3,894,400 126.69

1 Oct, 2009 293.86 319.41 281.58 283.49 3,943,600 119.91

11-Sep-2009 14.00 Dividend

1 Sep, 2009 293.89 303.56 233.56 291.76 5,672,000 123.41

3 Aug, 2009 291.25 307.50 277.02 297.25 5,982,800 119.74

1 Jul, 2009 266.30 294.42 240.75 292.50 9,611,200 117.82

1 Jun, 2009 292.77 305.00 241.00 266.31 8,869,000 107.27

1 May, 2009 217.00 305.00 200.59 295.74 11,491,100 119.13

1 Apr, 2009 195.00 230.62 187.80 217.00 6,669,300 87.41

2 Mar, 2009 166.01 210.85 159.38 194.55 8,170,900 78.37

2 Feb, 2009 162.57 184.65 157.50 172.50 6,398,300 69.49

1 Jan, 2009 166.75 199.35 146.95 164.00 7,178,100 66.06

46

23-Dec-2008 18.00 Dividend

1 Dec, 2008 181.21 185.43 156.76 167.00 9,436,500 67.27

3 Nov, 2008 175.00 202.50 153.07 171.76 10,694,500 62.18

1 Oct, 2008 266.10 266.10 134.54 171.00 11,660,200 61.91

1 Sep, 2008 254.75 282.42 230.50 258.70 8,062,100 93.65

1 Aug, 2008 245.05 285.00 238.45 255.94 10,244,600 92.65

1 Jul, 2008 207.49 272.00 194.68 248.00 9,968,700 89.78

2 Jun, 2008 217.50 243.73 198.75 201.00 11,083,500 72.77

2 May, 2008 261.00 263.62 210.05 215.40 9,826,900 77.98

1 Apr, 2008 250.00 268.25 241.75 257.83 5,468,300 93.34

3 Mar, 2008 256.10 276.70 230.39 246.50 7,628,800 89.24

1 Feb, 2008 248.76 280.35 226.25 253.00 4,872,300 91.59

1 Jan, 2008 310.00 339.00 207.50 254.50 8,190,600 92.13

3 Dec, 2007 290.00 318.40 285.25 309.50 6,745,200 112.05

1 Nov, 2007 317.23 346.26 278.27 292.06 6,702,200 105.73

1 Oct, 2007 240.50 317.02 230.02 312.50 8,673,400 113.13

3 Sep, 2007 215.00 246.00 205.55 242.75 4,721,600 87.88

31 Aug, 2007 211.25 216.49 208.64 215.00 6,956,200 77.83

IOC

Prices

Date Open High Low Close Avg Vol Adj Close*

1 Dec, 2011 263.00 278.00 248.50 253.75 434,600 248.55

47

1 Nov, 2011 291.90 308.00 254.70 261.95 617,400 256.58

3 Oct, 2011 313.00 323.80 286.95 291.00 595,300 285.04

15-Sep-2011 9.50 Dividend

2 Sep, 2011 307.85 326.95 305.15 311.45 430,300 305.07

1 Aug, 2011 316.55 344.85 302.90 306.90 629,600 291.69

1 Jul, 2011 338.05 344.00 313.55 315.05 435,700 299.44

1 Jun, 2011 326.50 358.00 312.50 336.85 664,200 320.16

2 May, 2011 341.35 359.70 297.50 328.30 799,600 312.03

1 Apr, 2011 330.00 344.00 320.60 339.85 385,200 323.01

1 Mar, 2011 301.00 342.00 295.00 332.85 654,300 316.36

1 Feb, 2011 336.00 337.50 290.10 298.95 679,100 284.14

3 Jan, 2011 344.00 355.45 301.25 336.95 997,800 320.25

1 Dec, 2010 349.00 407.20 335.15 342.40 1,118,900 325.43

1 Nov, 2010 420.00 427.90 326.50 346.65 799,100 329.47

1 Oct, 2010 419.90 435.00 399.15 418.05 982,300 397.33

1 Sep, 2010 414.50 456.90 409.05 416.80 1,520,400 396.15

2 Aug, 2010 362.30 416.70 356.05 411.15 1,304,200 390.78

1 Jul, 2010 403.00 409.00 352.30 362.00 1,659,400 344.06

1 Jun, 2010 354.80 417.50 317.70 403.10 3,099,400 383.13

3 May, 2010 294.00 354.90 289.80 353.15 1,079,600 335.65

1 Apr, 2010 309.95 309.95 273.05 294.75 561,800 280.14

1 Mar, 2010 316.00 321.70 291.20 295.75 559,300 281.09

1 Feb, 2010 316.30 334.45 301.55 317.40 692,700 301.67

48

1 Jan, 2010 306.90 334.45 306.55 316.30 382,300 300.63

1 Dec, 2009 291.90 332.85 289.20 306.90 787,800 291.69

2 Nov, 2009 309.50 317.90 285.20 289.50 817,100 275.15

29-Oct-2009 2: 1 Stock Split

1 Oct, 2009 340.17 343.00 281.15 309.50 853,200 294.16

02-Sep-2009 7.50 Dividend

1 Sep, 2009 291.95 347.90 291.00 340.10 1,397,500 161.62

3 Aug, 2009 275.55 297.50 265.50 290.95 1,123,800 134.75

1 Jul, 2009 267.50 293.33 253.10 273.60 989,500 126.71

1 Jun, 2009 308.00 316.50 262.05 265.05 1,437,800 122.75

1 May, 2009 220.00 331.00 200.00 301.92 1,633,600 139.83

1 Apr, 2009 199.48 227.50 194.10 220.00 402,500 101.89

2 Mar, 2009 215.55 225.35 189.02 193.05 766,300 89.41

2 Feb, 2009 224.00 233.45 210.02 217.62 513,100 100.79

1 Jan, 2009 202.80 226.90 177.00 223.00 768,900 103.28

1 Dec, 2008 207.62 215.00 185.50 213.50 931,800 98.88

3 Nov, 2008 171.00 209.00 165.75 208.00 386,900 96.33

1 Oct, 2008 204.00 230.00 150.00 168.00 698,600 77.81

1 Sep, 2008 199.93 227.48 179.00 204.00 892,100 94.48

1 Aug, 2008 207.50 229.00 195.00 201.50 530,000 93.32

1 Jul, 2008 165.00 210.00 150.00 202.00 573,400 93.55

2 Jun, 2008 215.00 225.90 164.50 165.50 1,077,700 76.65

2 May, 2008 235.00 244.88 196.98 215.00 1,229,700 99.57

1 Apr, 2008 228.50 247.00 215.45 229.90 823,200 106.47

49

3 Mar, 2008 270.55 283.70 201.60 223.55 967,100 103.53

1 Feb, 2008 242.23 290.50 226.10 278.98 1,449,900 129.20

1 Jan, 2008 400.00 401.95 174.50 237.50 2,022,000 109.99

3 Dec, 2007 270.00 405.00 250.05 396.50 2,966,100 183.63

1 Nov, 2007 240.00 332.00 227.75 270.25 1,696,100 125.16

1 Oct, 2007 225.75 256.35 205.07 240.00 879,100 111.15

3 Sep, 2007 195.00 242.40 192.68 235.50 751,800 109.07

31 Aug, 2007 194.95 195.40 192.55 194.50 411,600 90.08

SBI

Prices

Date Open High Low Close Avg Vol Adj Close*

1 Dec, 2011 1,816.00 1,959.85 1,571.10 1,619.05 3,159,200 1,590.06

1 Nov, 2011 1,892.50 2,017.50 1,627.25 1,762.45 3,985,400 1,730.90

3 Oct, 2011 1,882.15 1,989.00 1,710.00 1,906.30 3,376,600 1,872.17

2 Sep, 2011 1,991.00 2,047.95 1,808.50 1,911.05 3,155,100 1,876.84

1 Aug, 2011 2,365.10 2,383.00 1,866.60 1,973.00 2,281,600 1,937.68

1 Jul, 2011 2,418.50 2,529.70 2,334.70 2,344.80 1,394,800 2,302.82

1 Jun, 2011 2,308.80 2,433.00 2,120.05 2,404.65 1,926,300 2,361.60

20-May-2011 30.00 Dividend

2 May, 2011 2,810.00 2,819.00 2,165.00 2,297.95 2,825,500 2,256.81

1 Apr, 2011 2,765.30 2,960.05 2,705.10 2,804.60 1,651,900 2,718.81

1 Mar, 2011 2,657.00 2,888.50 2,520.45 2,765.30 1,923,600 2,680.71

50

1 Feb, 2011 2,652.60 2,814.75 2,476.30 2,630.45 2,613,300 2,549.99

3 Jan, 2011 2,832.70 2,852.00 2,463.10 2,642.40 3,028,900 2,561.57

1 Dec, 2010 2,999.00 3,173.60 2,655.50 2,811.90 2,661,200 2,725.88

1 Nov, 2010 3,195.00 3,515.00 2,775.00 2,992.20 2,847,700 2,900.67

1 Oct, 2010 3,239.40 3,324.85 3,076.00 3,150.60 1,202,200 3,054.22

1 Sep, 2010 2,775.00 3,274.70 2,737.25 3,240.45 1,988,600 3,141.33

2 Aug, 2010 2,519.95 2,884.80 2,512.00 2,766.40 1,793,500 2,681.78

1 Jul, 2010 2,291.10 2,522.00 2,253.55 2,502.90 1,424,900 2,426.34

09-Jun-2010 20.00 Dividend

1 Jun, 2010 2,251.10 2,630.10 2,202.10 2,302.00 1,411,600 2,231.58

3 May, 2010 2,290.00 2,349.00 2,138.00 2,268.80 1,844,700 2,180.14

1 Apr, 2010 2,080.00 2,318.90 2,012.00 2,300.70 1,826,300 2,210.79

2 Mar, 2010 1,990.55 2,121.95 1,974.20 2,078.20 1,460,600 1,996.99

05-Feb-2010 10.00 Dividend

1 Feb, 2010 2,173.00 2,173.00 1,863.10 1,974.30 1,547,100 1,897.15

1 Jan, 2010 2,270.05 2,315.00 2,136.80 2,173.00 894,300 2,078.47

1 Dec, 2009 2,246.00 2,375.00 2,125.25 2,270.05 1,820,300 2,171.30

2 Nov, 2009 2,181.20 2,384.50 2,057.40 2,235.10 2,518,600 2,137.87

1 Oct, 2009 2,191.55 2,499.00 2,047.00 2,181.20 2,906,200 2,086.31

1 Sep, 2009 1,761.00 2,219.00 1,715.00 2,212.00 1,972,400 2,115.78

3 Aug, 2009 1,820.00 1,888.00 1,671.35 1,745.95 1,450,600 1,670.00

1 Jul, 2009 1,731.00 1,839.90 1,510.60 1,819.00 2,412,800 1,739.87

10-Jun-2009 29.00 Dividend

51

1 Jun, 2009 2,039.70 2,039.70 1,598.95 1,748.05 2,520,900 1,672.01

1 May, 2009 1,291.15 1,892.15 1,219.45 1,870.00 3,184,800 1,757.76

1 Apr, 2009 1,076.15 1,355.00 1,023.30 1,291.15 3,054,600 1,213.65

2 Mar, 2009 1,014.70 1,134.00 891.50 1,055.00 4,012,900 991.68

2 Feb, 2009 1,139.00 1,205.95 996.15 1,022.90 2,415,900 961.50

1 Jan, 2009 1,329.00 1,388.70 1,031.10 1,148.00 2,761,500 1,079.09

1 Dec, 2008 1,090.00 1,324.00 995.55 1,290.00 3,736,300 1,212.57

3 Nov, 2008 1,164.00 1,380.00 1,021.25 1,085.05 3,945,600 1,019.92

1 Oct, 2008 1,484.80 1,589.80 985.00 1,114.00 3,445,500 1,047.14

1 Sep, 2008 1,390.00 1,620.00 1,352.00 1,472.00 2,430,400 1,383.65

1 Aug, 2008 1,391.80 1,639.00 1,300.55 1,404.55 2,019,500 1,320.25

1 Jul, 2008 1,115.00 1,574.00 965.65 1,406.00 1,676,900 1,321.61

2 Jun, 2008 1,427.00 1,498.00 1,101.00 1,107.00 1,082,200 1,040.56

29-May-2008 21.50 Dividend

2 May, 2008 1,799.95 1,840.00 1,435.35 1,445.00 1,015,400 1,358.27

1 Apr, 2008 1,605.00 1,821.00 1,561.35 1,781.00 924,700 1,650.58

3 Mar, 2008 2,001.00 2,052.40 1,581.00 1,608.00 1,358,900 1,490.24

1 Feb, 2008 2,244.70 2,339.70 1,945.00 2,088.80 963,200 1,935.84

1 Jan, 2008 2,380.00 2,574.00 1,830.00 2,165.00 1,110,600 2,006.45

3 Dec, 2007 2,330.00 2,476.00 2,227.00 2,365.00 763,800 2,191.81

1 Nov, 2007 2,167.00 2,450.00 2,000.00 2,305.00 1,622,800 2,136.20

1 Oct, 2007 1,952.00 2,175.00 1,600.00 2,081.00 1,953,100 1,928.61

3 Sep, 2007 1,619.00 1,961.95 1,580.00 1,957.05 1,478,300 1,813.73

31 Aug, 2007 1,570.00 1,618.00 1,570.00 1,596.00 3,310,200 1,479.12

52

Reliance

Prices

Date Open High Low Close Avg Vol Adj Close*

1 Dec, 2011 799.00 844.60 689.00 692.95 4,695,100 684.61

1 Nov, 2011 870.50 905.00 751.00 778.25 4,225,800 768.88

3 Oct, 2011 791.20 904.00 761.75 877.55 4,041,200 866.99

2 Sep, 2011 796.70 859.00 747.55 808.35 6,347,800 798.62

1 Aug, 2011 838.00 838.90 712.00 785.10 4,587,700 775.65

1 Jul, 2011 907.00 907.00 823.15 827.95 4,256,500 817.99

1 Jun, 2011 952.00 967.00 828.10 898.50 4,098,800 887.69

05-May-2011 8.00 Dividend

2 May, 2011 983.90 986.80 898.35 951.85 3,411,600 940.39

1 Apr, 2011 1,049.05 1,065.90 970.00 983.75 3,228,700 963.71

1 Mar, 2011 973.70 1,055.00 964.00 1,049.10 4,604,800 1,027.72

1 Feb, 2011 925.10 1,009.40 885.10 964.25 6,423,100 944.60

3 Jan, 2011 1,065.00 1,091.40 902.00 919.30 5,145,800 900.57

1 Dec, 2010 985.00 1,075.00 978.75 1,058.70 3,816,000 1,037.13

1 Nov, 2010 1,121.00 1,124.90 958.30 985.60 5,012,400 965.52

1 Oct, 2010 992.00 1,110.00 990.00 1,096.25 5,556,500 1,073.91

1 Sep, 2010 925.05 1,048.50 921.00 987.25 5,302,300 967.13

53

2 Aug, 2010 1,016.00 1,031.00 915.00 919.20 5,330,000 900.47

1 Jul, 2010 1,084.00 1,094.45 1,007.25 1,009.65 3,739,600 989.08

1 Jun, 2010 1,043.30 1,093.95 995.10 1,089.85 4,489,800 1,067.64

10-May-2010 7.00 Dividend

3 May, 2010 1,026.00 1,093.40 976.00 1,045.60 5,357,500 1,024.30

1 Apr, 2010 1,078.00 1,149.70 1,012.00 1,033.60 4,081,200 1,005.68

1 Mar, 2010 979.30 1,111.00 979.30 1,074.25 4,385,500 1,045.23

1 Feb, 2010 1,085.90 1,085.90 959.15 978.95 3,323,900 952.50

1 Jan, 2010 1,093.35 1,149.90 1,021.85 1,085.90 5,120,100 1,056.56

1 Dec, 2009 1,075.00 1,120.00 990.00 1,093.35 3,552,600 1,063.81

26-Nov-2009 2: 1 Stock Split

2 Nov, 2009 963.50 1,112.95 901.12 1,058.00 7,016,600 1,029.42

16-Oct-2009 13.00 Dividend

1 Oct, 2009 1,099.95 1,141.65 961.00 963.50 6,688,600 468.74

1 Sep, 2009 1,012.40 1,119.95 961.65 1,099.50 7,845,700 528.49

3 Aug, 2009 984.45 1,062.50 962.50 999.35 5,678,200 480.35

1 Jul, 2009 1,014.95 1,091.50 858.55 987.00 8,811,100 474.42

1 Jun, 2009 1,165.00 1,189.50 950.00 1,014.50 9,103,300 487.63

1 May, 2009 905.10 1,267.50 905.10 1,129.00 9,169,200 542.67

1 Apr, 2009 761.50 920.00 748.67 905.10 8,124,500 435.05

2 Mar, 2009 614.35 791.70 557.65 761.05 10,722,800 365.81

2 Feb, 2009 645.00 707.05 600.67 627.75 8,684,300 301.74

1 Jan, 2009 620.00 695.00 532.50 664.90 11,479,600 319.59

1 Dec, 2008 562.65 703.50 512.50 616.28 13,147,000 296.22

54

3 Nov, 2008 719.50 752.60 516.05 567.50 15,258,900 272.78

1 Oct, 2008 980.00 981.50 465.00 682.50 12,973,000 328.05

1 Sep, 2008 1,060.00 1,125.00 882.50 972.55 9,435,700 467.47

1 Aug, 2008 1,085.03 1,188.00 1,026.40 1,062.65 4,490,100 510.78

1 Jul, 2008 1,055.00 1,169.22 960.00 1,107.00 7,846,300 532.10

2 Jun, 2008 1,214.00 1,222.00 978.12 1,041.50 10,086,200 500.61

1 May, 2008 1,304.00 1,513.00 1,195.12 1,200.55 4,891,300 577.06

1 Apr, 2008 1,149.50 1,359.00 1,121.75 1,304.00 5,645,100 626.79

3 Mar, 2008 1,199.90 1,214.20 1,060.00 1,126.35 6,431,300 541.40

1 Feb, 2008 1,245.00 1,321.00 1,117.50 1,216.90 5,532,200 584.92

1 Jan, 2008 1,445.00 1,649.00 1,060.00 1,247.50 9,155,900 599.63

3 Dec, 2007 1,444.10 1,494.00 1,325.78 1,443.75 5,326,300 693.96

1 Nov, 2007 1,410.00 1,464.00 1,288.50 1,423.00 7,248,900 683.99

1 Oct, 2007 1,155.00 1,494.50 1,098.85 1,392.50 10,733,100 669.33

3 Sep, 2007 980.45 1,213.00 960.62 1,148.50 5,518,500 552.04

31 Aug, 2007 950.00 985.00 949.42 979.00 14,524,400 470.57

ICICI

Prices

55

Date Open High Low Close Avg Vol Adj Close*

1 Dec, 2011 754.00 792.00 641.00 684.65 5,844,400 670.83

1 Nov, 2011 917.95 923.50 704.90 712.45 8,275,000 698.07

3 Oct, 2011 860.00 953.65 761.40 931.15 4,454,300 912.35

2 Sep, 2011 891.50 928.00 833.00 875.40 3,907,600 857.73

1 Aug, 2011 1,052.80 1,059.70 813.90 874.00 4,438,600 856.35

1 Jul, 2011 1,111.35 1,111.80 1,003.60 1,036.75 2,969,900 1,015.82

02-Jun-2011 14.00 Dividend

1 Jun, 2011 1,083.80 1,099.50 1,003.40 1,094.65 3,216,100 1,072.55

2 May, 2011 1,113.80 1,118.30 1,003.00 1,086.10 3,392,800 1,050.44

1 Apr, 2011 1,114.80 1,139.00 1,072.00 1,114.45 3,770,700 1,077.86

1 Mar, 2011 983.90 1,128.00 978.30 1,116.20 3,886,700 1,079.55

1 Feb, 2011 1,019.10 1,073.00 939.80 970.85 4,665,200 938.97

3 Jan, 2011 1,154.00 1,158.40 991.55 1,021.60 4,923,600 988.05

1 Dec, 2010 1,150.00 1,202.00 1,041.10 1,145.10 3,607,700 1,107.50

1 Nov, 2010 1,186.25 1,279.00 1,091.25 1,142.10 4,362,700 1,104.60

1 Oct, 2010 1,117.05 1,177.00 1,074.00 1,163.00 4,057,100 1,124.81

1 Sep, 2010 980.35 1,148.00 980.35 1,112.95 3,526,200 1,076.41

2 Aug, 2010 912.00 1,024.00 911.00 977.70 4,166,700 945.60

1 Jul, 2010 854.45 932.00 833.20 904.90 2,979,700 875.19

10-Jun-2010 12.00 Dividend

1 Jun, 2010 851.65 910.00 712.00 861.70 4,024,600 833.41

3 May, 2010 946.10 957.95 802.35 868.30 4,685,600 827.57

1 Apr, 2010 957.00 1,009.70 902.55 951.95 4,376,100 907.29

56

2 Mar, 2010 885.10 970.80 856.00 952.50 4,321,600 907.82

1 Feb, 2010 865.00 887.00 786.00 872.15 3,342,000 831.24

1 Jan, 2010 880.00 907.35 821.65 865.00 2,124,700 824.42

1 Dec, 2009 876.00 917.45 800.50 880.00 4,217,500 838.72

2 Nov, 2009 793.00 932.00 774.05 863.05 5,191,100 822.56

1 Oct, 2009 818.00 969.80 756.65 793.00 6,047,900 755.80

1 Sep, 2009 752.20 927.60 723.00 904.95 5,202,600 862.50

3 Aug, 2009 763.95 803.90 690.20 751.60 5,514,700 716.34

1 Jul, 2009 720.00 807.70 606.15 759.95 9,623,600 724.30

11-Jun-2009 11.00 Dividend

1 Jun, 2009 758.70 779.60 675.05 725.60 9,339,900 691.56

1 May, 2009 481.00 800.00 481.00 736.00 13,963,400 691.14

1 Apr, 2009 349.70 484.50 323.65 481.00 15,316,300 451.68

2 Mar, 2009 324.70 387.80 252.30 333.80 25,181,700 313.46

2 Feb, 2009 402.55 442.00 311.05 333.00 10,606,000 312.70

1 Jan, 2009 450.00 538.60 331.55 415.25 9,483,200 389.94

1 Dec, 2008 358.00 481.50 308.25 447.60 10,229,400 420.32

3 Nov, 2008 415.00 492.10 306.10 354.00 13,050,300 332.43

1 Oct, 2008 526.10 564.90 283.10 399.50 16,329,500 375.15

1 Sep, 2008 657.00 750.00 460.05 540.00 13,331,900 507.09

1 Aug, 2008 615.00 789.00 610.00 670.65 7,750,600 629.78

1 Jul, 2008 630.00 764.90 514.00 633.00 8,069,600 594.42

2 Jun, 2008 830.00 835.00 611.35 635.00 4,666,500 596.30

2 May, 2008 948.70 971.00 778.20 786.55 4,744,700 738.61

57

1 Apr, 2008 793.90 960.00 726.55 881.00 4,567,700 827.31

3 Mar, 2008 1,060.00 1,060.00 720.05 769.00 6,496,500 722.13

1 Feb, 2008 1,157.00 1,244.90 999.00 1,077.65 3,019,500 1,011.97

1 Jan, 2008 1,240.00 1,455.50 1,001.65 1,147.00 5,153,000 1,077.09

3 Dec, 2007 1,180.00 1,326.60 1,130.25 1,235.00 2,531,100 1,159.73

1 Nov, 2007 1,270.00 1,349.00 1,080.00 1,175.00 2,829,100 1,103.39

1 Oct, 2007 1,068.00 1,293.95 975.00 1,265.00 4,039,500 1,187.90

3 Sep, 2007 890.10 1,069.90 882.00 1,060.20 3,100,100 995.58

31 Aug, 2007 873.05 894.60 869.00 885.00 4,735,800 831.06

Bharti airtel

Prices

Date Open High Low Close Avg Vol Adj Close*

1 Dec, 2011 392.90 397.80 319.25 343.50 6,089,100 342.18

1 Nov, 2011 386.80 412.00 354.80 386.10 10,138,400 384.62

3 Oct, 2011 373.10 409.30 343.55 391.80 4,400,000 390.30

2 Sep, 2011 416.00 418.95 360.65 378.00 4,295,000 376.55

17-Aug-2011 1.00 Dividend

1 Aug, 2011 447.85 447.85 377.20 403.60 6,605,800 402.05

58

1 Jul, 2011 394.90 439.25 378.25 437.25 5,300,000 434.47

1 Jun, 2011 375.25 404.95 367.65 394.90 4,893,300 392.39

2 May, 2011 379.00 384.95 345.70 374.15 3,469,900 371.77

1 Apr, 2011 354.60 428.40 345.70 380.05 4,184,100 377.64

1 Mar, 2011 331.10 364.95 308.95 357.40 3,978,000 355.13

1 Feb, 2011 325.00 344.25 304.45 331.30 5,256,500 329.20

3 Jan, 2011 360.90 365.00 311.00 319.00 3,340,600 316.97

1 Dec, 2010 357.50 360.00 322.00 358.80 3,729,700 356.52

1 Nov, 2010 329.00 362.90 303.40 360.15 7,326,800 357.86

1 Oct, 2010 370.10 370.10 318.00 325.65 4,961,900 323.58

1 Sep, 2010 329.00 376.95 328.80 366.30 5,635,200 363.97

18-Aug-2010 1.00 Dividend

2 Aug, 2010 308.00 335.75 308.00 327.35 5,109,100 325.27

1 Jul, 2010 263.00 324.40 261.10 306.80 8,508,100 303.89

1 Jun, 2010 263.10 292.00 254.35 262.80 6,705,200 260.30

3 May, 2010 298.00 299.90 252.00 262.90 7,435,900 260.40

1 Apr, 2010 312.60 343.70 292.00 298.55 5,655,200 295.72

1 Mar, 2010 279.40 321.00 279.40 312.55 5,093,400 309.58

1 Feb, 2010 319.50 319.50 269.35 279.35 7,674,300 276.70

1 Jan, 2010 330.90 335.15 315.25 319.50 2,298,500 316.47

1 Dec, 2009 304.90 348.80 300.00 330.90 7,288,300 327.76

2 Nov, 2009 292.50 325.60 274.00 299.95 10,661,200 297.10

1 Oct, 2009 426.00 459.00 290.10 292.50 22,568,100 289.72

59

1 Sep, 2009 418.65 485.00 399.05 418.00 6,824,800 414.03

3 Aug, 2009 418.00 439.25 365.05 424.45 6,480,700 420.42

24-Jul-2009 2.00 Dividend

24-Jul-2009 2: 1 Stock Split

1 Jul, 2009 401.58 436.20 368.38 411.00 6,581,200 407.10

1 Jun, 2009 435.00 435.00 375.50 403.50 8,021,700 198.85

1 May, 2009 377.00 518.00 369.27 411.90 13,930,600 202.99

1 Apr, 2009 313.20 380.85 297.00 377.00 7,685,300 185.79

2 Mar, 2009 316.35 318.75 270.55 311.00 10,766,300 153.27

2 Feb, 2009 314.85 339.50 303.52 317.58 5,681,900 156.51

1 Jan, 2009 357.50 362.50 276.67 316.05 8,938,600 155.75

1 Dec, 2008 338.85 379.00 311.00 356.67 6,946,500 175.78

3 Nov, 2008 345.00 374.00 288.25 335.00 9,615,300 165.09

1 Oct, 2008 409.50 409.50 241.50 333.40 11,116,600 164.31

1 Sep, 2008 418.50 424.35 325.50 392.50 9,918,500 193.43

1 Aug, 2008 394.95 443.45 385.30 419.55 7,886,900 206.76

1 Jul, 2008 369.92 430.98 336.27 397.48 10,137,000 195.88

2 Jun, 2008 440.00 443.75 358.00 360.00 7,875,100 177.41

1 May, 2008 447.85 489.90 399.00 439.50 7,781,900 216.59

1 Apr, 2008 415.00 475.00 389.15 447.85 6,073,100 220.71

3 Mar, 2008 404.88 423.50 353.10 408.60 6,156,300 201.36

1 Feb, 2008 431.00 473.25 403.12 415.50 4,857,600 204.77

1 Jan, 2008 500.00 505.45 350.50 432.62 8,194,100 213.20

3 Dec, 2007 470.50 534.85 447.02 495.00 6,554,800 243.94

60

1 Nov, 2007 507.50 537.00 413.50 473.05 8,626,900 233.13

1 Oct, 2007 467.55 592.10 454.25 506.50 8,555,800 249.61

3 Sep, 2007 439.80 492.50 403.50 469.98 2,077,000 231.61

31 Aug, 2007 439.88 443.98 435.08 440.00 3,731,000 216.84

3.3} Investors behavior analysis

1) Your occupation?

Business

Service man

Professional

Student

61

20%

40%

30%

10%

Occupationbussiness service man professional students

INTERPRETATION

Selected sample include al type of investors like 20% business man,40% job

holders,30% professional and 10% students

2) Are you a regular investor of stock market?

Yes

No

62

64%

36%

Reguler investoryes no

INTERPRETATION

Out of total respondants 64% are the rebuler investors whereas 36% are the non reguler investors of stock

market.

3) How long you had started doing investment?

Years

1 - 3

63

3 - 5

5 - 7

7 - 10

22%

42%

18%

18%

Years1 -- 3 3 -- 5 5 -- 7 7 -- 10

INTERPRETATION

Most of the respondants are experience as 22% of investors investing in market from last 7-10 year and

42% are investing from 5-7 years

4)How much you invest in market in a year?

Less than

10000

64

10,000-20,000

20,000-30,000

30,000-40,000

40,000-50,000

Above 50,000

6% 14%

24%

14%18%

24%

Rupees0 -- 10000 10001 - 20000 20001 - 3000030001 - 40000 40001 - 50000 50001-------

INTERPRETATION

Respondants include large investors as 24% invest Rs. 50000,18% invest Rs. 40000-50000,14% invest

30000-40000 , 24% invest 20000-30000 monthly in market

5)Are you aware about global recession?

65

Yes

No

94%

6%

AwareYes No

INTERPRETATION

Most of the investors are aware aout global recession as analysis shows 94% of respondants are aware.

6) What was your reaction after getting information?

66

Sell shares

Buy share

Wait

46%

32%

22%

First reactionBuy shares Sell shares wait

INTERPRETATION

Major decesion taken after getting information about recession was buying and selling of shares where

some of the investor decide to wait.

67

7)Have you made any investment during recession?

Yes

No

20%

80%

ResponseYes No

INTERPRETATION

80% of investors made investment in recession period

8)How much you had invested in that time?

Less than

68

10000

10,000-20,000

20,000-30,000

30,000-40,000

40,000-50,000

Above 50,000

17%

33%19%

10%

12% 10%

Investment0 -- 10000 10001 - 20000 20001 - 3000030001 - 40000 40001 - 50000 50001-------

INTERPRETATION

In recession many investors reduce the money they invest in market.as there are 10% investors who invest

above 50000 where before recession 24% of respondants are in this category.here major investors move

to the investment of rs. 10000-20000.before recession only 14% of respondants was there.

9)What was the returns doing that time?

69

Worst

Bad

Normal

Good

Excellent

2%8%

50%

40%

Returnsworst bad normal good excellent

INTERPRETATION

Investors who invest in market with proper knowladge get normal as well as good returns but some who

invest without study get bad as well as worst returns.

10)How was your investment behavior during 2007-2011?

Increasing

70

Decreasing

Stable

30%

50%

20%

Trendincreasing decreasing stable

INTERPRETATION

Most commom behavior of investment was decresing in the period of 2007-2011.

71

CHAPTER - 4

LIMITATIONS OF THE STUDY

72

No study is complete in itself, however, good it may and every study has some

limitations:

• Time is the main constraint of my study.

• Availability of information was not sufficient because of unwillingness

among investors to provide information

• Sample size is not enough to have a clear opinion

SUGGESTIONS

73

Always prefer to go for long term investments.

Never proceed without proper knowledge or consultation.

Analyze the information available before reaction

It’s a game to wait, watch and react.

74

FINDINGS AND CONCLUSION

Financial crisis impacted various economies across the world; including

USA, UK, Japan, China, France and India. During this turmoil the countries

had varying impacts; countries like China and India had a lesser share of the

worldwide despair. There are many reasons which it has led the world to

believe that India survived the global.

In the current global economic slowdown, every sector of business is being

affected and is witnessing a hard time.

Capital market also face a hard time and reached to its lowest but still it

recovers from that and grow fast.

Investors of market also bear some loses and reduce their investment. Some

of the investors left the market.

REFRENCES

75

www.bseindia.com/indices/IndexArchiveData.aspx

www.ukdissertations.com › Dissertations › Business

http://www.slideshare.net/rssa21/recession-in-india-2008

http://www.ftkmc.com/equities.html

times of India

Questionnaire

76

Name …………………….

Address…………………..

……………………………

Mob……………………….

1. Your occupation?

Business

Service man

Professional

Student

2. Are you a regular investor of stock market?

Yes

No

3. When you invest for first time?

2005-06

2006-07

2007-08

2008-09

2009-10

4. How much you invest in market in a year?

77

Less than

10000

10,000-20,000

20,000-30,000

30,000-40,000

40,000-50,000

Above 50,000

5. Are you aware about global recession?

Yes

No

6. What was your reaction after getting information?

Sell shares

Buy share

Wait

7. Have you made any investment during recession?

Yes

No

{if yes move to question no.-8}

78

8. If No, why?

……………………………………………………………………………………………

……………………………………………………………………………………………

9. How much you had invested in that time?

Less than

10000

10,000-20,000

20,000-30,000

30,000-40,000

40,000-50,000

Above 50,000

10. What was the returns doing that time?

Worst

79

Bad

Normal

Good

Excellent

11. How was your investment behavior during 2007-2011?

Increasing

Decreasing

Stable

80