Recession & its impact on indian stk mkt final DIAS IIFL

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Recession & its impact on indian stk mkt final DIAS IIFL

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Recession & its impact on indian stk mkt final DIAS IIFL

  1. 1. RAVI GARG 0601233908 MBA-3 rd -A Delhi Institute of Advanced Studies
  2. 2. Company Profile Delhi Institute of Advanced Studies
  3. 3. Before, understanding “ Recession ”, we need to understand the Market Economy <ul><li>A] TWO STAGES OF MARKET ECONOMY </li></ul><ul><li>a)Growing Market Economy </li></ul><ul><li>b)Declining Market Economy </li></ul><ul><li>B] TWO FACTORS OF MARKET </li></ul><ul><li>a)Demand & </li></ul><ul><li>b)Supply </li></ul>Delhi Institute of Advanced Studies
  4. 4. A] Growing Market Economy Delhi Institute of Advanced Studies
  5. 5. B] Declining Market Economy Delhi Institute of Advanced Studies
  6. 6. TWO FACTORS OF MARKET Producer wants his demand always to be high Consumer wants his buying cost always to be low Producer Price Consumer Price Actually, Demand is the price at which consumer is ready to buy and producer is ready to sell Usually, we think; Demand = Quantity But, here Demand = Price; This is because, Price decides the Quantity of Sales; Competitive Price = More Demand; In competitive Price = Less Demand; Delhi Institute of Advanced Studies
  7. 7. Delhi Institute of Advanced Studies
  8. 8. WHAT IS RECESSION??? <ul><li>Recession is a contraction phase of the Business Cycle. </li></ul><ul><li>It is decline in GDP growth for 2 or more consecutives quarter of a year. </li></ul><ul><li>GDP = Value of all the reported goods and services </li></ul><ul><li>produced by the people operating in the country </li></ul>GDP = MONEY VALUE OF {C + I + G + (X – M)} C = Consumables, I = Gross Investments, G = Government Spending, X = Exports, M = Imports Delhi Institute of Advanced Studies
  9. 9. Government has 2 plans Fiscal Policies (By Govt.) Monetary Policies (By RBI) Since, Govt does not have direct control on Producers’ & the Consumers’ behavior; But, they can influence millions of Producers & Consumers with Govt’s policies; Government influences the economy by changing how it (Govt) spends and collects money RBI manipulates the available supply of money in the country How to come out of recession ? Delhi Institute of Advanced Studies
  10. 10. Business cycle Delhi Institute of Advanced Studies
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  12. 12. SENSEX V/S FII Delhi Institute of Advanced Studies
  13. 13. US $ V/S Rupee Delhi Institute of Advanced Studies
  14. 14. Objective <ul><li>Through this we would focus on the following area </li></ul><ul><ul><li>Find out the factor which impact the market most, </li></ul></ul><ul><ul><li>To find whether they are short term or long term investor. </li></ul></ul><ul><ul><li>To know the mindset of investors towards Indian banking system. </li></ul></ul><ul><ul><li>To analysis the impact of recession on Indian investor & stock market. </li></ul></ul>Delhi Institute of Advanced Studies
  15. 15.   Research Design <ul><li>Secondary Research </li></ul><ul><li>Collection of data from various websites to understand the relationship between Sensex, US Dollar and FII’S. </li></ul><ul><li>Primary Research : </li></ul><ul><ul><li>A Primary Research has been conducted. </li></ul></ul><ul><ul><li>The questionnaire was prepared for the investors to find out… </li></ul></ul><ul><ul><li>Investor’s profile </li></ul></ul><ul><ul><li>What impact the Indian stock market. </li></ul></ul><ul><ul><li>Their view on Indian banks. </li></ul></ul><ul><ul><li>Their Positive-ness for Indian stock market. </li></ul></ul>Delhi Institute of Advanced Studies
  16. 16. Sampling Plan <ul><li>Elements: </li></ul><ul><ul><li>The target population of the study included the general population above the age of 25 yrs </li></ul></ul><ul><ul><li>Sampling design and sampling unit are as follows: </li></ul></ul><ul><ul><li>Sampling frame- Urban class in the Delhi(NCR) region </li></ul></ul><ul><ul><li>Sample size: 100 </li></ul></ul>Delhi Institute of Advanced Studies
  17. 17. You hold the stocks for how much time period? Delhi Institute of Advanced Studies
  18. 18. What significantly impact the Indian stock market? Delhi Institute of Advanced Studies
  19. 19. To whom you blame for losses you have incurred? Delhi Institute of Advanced Studies
  20. 20. Will you stay invested in the stock market? Delhi Institute of Advanced Studies
  21. 21. Which one is your preferred stock in which do you want to invest? Delhi Institute of Advanced Studies
  22. 22. Which bank do you prefer for deposit? Delhi Institute of Advanced Studies
  23. 23. Where do you invest? Delhi Institute of Advanced Studies
  24. 24. Where do you see BSE sensex one year from now? Delhi Institute of Advanced Studies
  25. 25. When BSE Sensex will reach its all time high of 21000+ ? Delhi Institute of Advanced Studies
  26. 26. Conclusions <ul><li>Recession has a huge impact on Indian stock market. </li></ul><ul><li>According to investors FII’S are the main factor in fluctuation in indices of Indian stock market. </li></ul><ul><li>Respondents basically invest their money for a short period of time. </li></ul><ul><li>They don’t have much knowledge of derivative market. </li></ul><ul><li>They are not fearful regarding their deposits in any Indian bank. </li></ul><ul><li>Indian investor have positive mindset regarding Indian stock market. </li></ul>Delhi Institute of Advanced Studies
  27. 27. Recommendation <ul><li>SEBI must do something regarding FII’S. </li></ul><ul><li>SEBI must take some steps to educate Indian investors so that they will invest after doing proper fundamental & technical analysis of stocks. </li></ul><ul><li>Investors must invest for long period and invest in various sector (portfolio diversification ) to minimize their risk. </li></ul>Delhi Institute of Advanced Studies
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