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CHINMAY KU. MOHANTA


INDIAN STOCK MARKET

BSE NSE

ëPopularly Known as BSE ëPopularly known as NIFTY 50


SENSEX( SENS
SENSitive
itive indEX
indEX ) ëCovers around 1500 cities
ëHas a significant trading through VSAT
volume ëMoves almost parallel to BSE
ëIn January 8, 2008 crossed ëCrossed 6000
21000
ëNow around 8000-
8000-9000 ëNow around 2000-
2000-3000
VOLATILITY
Reasons :

ë _  ë __ 
  

   
 ë  



ë   



  ë   
ë    

 

VOLATILITY (contd..)
Fundamental Perceptions
ë Awareness about the fundamental analysis of the indices

ë Different people take it differently


Companies Performance
ë The various sectors show variability in their performance

ë Returns of the companies scrip in last couple of years

ë Future projects & investments


VOLATILITY (contd..)
Demand & Supply of Shares
ë More demand more price and vice-
vice-versa

ë Shortage of shares = High Demand = Higher price

ë More shares = Less demand = Lesser price

FII & FDI Participation


ë More FII & FDI inflows leads to higher demand of shares

ë Indian investors mostly follow the foreign investors


VOLATILITY (contd..)
Operator Driven
ë Indian stock market is said to be operator driven
ë The players play a vital role in its movement

Govt. & Economic Policies


ë The financial policies affect investors interest
ë Economic performance of the country
ë Govt. decision on various financial policies
VOLATILITY (contd..)
FDI & FII Investments (in Cr.INR)
Net Investment in Net Investment in
Ye r q it De t
ð  ð
ð 
4  ð 
4   
ðð

7   
7  ð 

 
ð
Conclusion
ë Indian stock market is fully driven by the participants

ë People are trendy enough to follow the FDIs

ë Presence of Large number of participants with variation


in perception

ë Government policies

Affect the movement of the STOCK-


STOCK-MARKET