SYNOPSIS

A project report on stock market is being prepared in attempts to interpret in-

depth study of volatility in Indian stock market. This report helps us to understand
various terminologies in stock market. This report gave me opportunity to have complete
idea about volatility in stock market. This gave me idea about technical and fundamental
analysis in stock market and how trading is being done in stock market.

This project report helps in following aspects,

• Build understanding of central ideas and theories of stock market.
• Develop familiarity with the analysis of stock market.
• Furnish institutional material relevant for understanding the environment in which
trading decisions are taken.

This project will guide to investors for an investment in stock market. This project
deployed a month time for collections of information from various sources. This project
will be very helpful to know volatility October 2009 to March 2010 and reasons for such
high volatility and would be able to take decisions for investment in volatile stock
market.

1
 CHAPTER 1

INTRODUCTION

Stock exchanges to some extent play an important role as indicators, reflecting the
performance of the country's economic state of health. Stock market is a place where
securities are bought and sold. It is exposed to a high degree of volatility; prices fluctuate
within minutes and are determined by the demand and supply of stocks at a given time.
Stockbrokers are the ones who buy and sell securities on behalf of individuals and
institutions for some commission.

The Securities and Exchange Board of India (SEBI) is the authorized body, which
regulates the operations of stock exchanges, banks and other financial institutions. The
past performances in the capital markets especially the securities scam by Harshad Mehta
has led to tightening of the operations by SEBI. In addition the international trading and
investment exposure has made it imperative to better operational efficiency. With the
view to improve, discipline and bring greater transparency in this sector, constant efforts
are being made and to a certain extent improvements have been made.

National Stock Exchange (NSE)

National Stock Exchange of India (NSE) is India’s largest Stock Exchange &
world’s third largest Stock Exchange in terms of transactions. Located in Mumbai, NSE
was promoted by leading Financial Institution at the behest of the government of India,
and was incorporated in November 1992 as a tax-paying company.

NSE is set up on a demutualised model wherein the ownership, management and

trading rights are in the hands of three different sets of people. This has completed any

conflict of interest.

2
Bombay Stock Exchange (BSE) – Sensex

Due to is wide acceptance amongst the Indian investors; SENSEX is regarded to

be the pulse of the Indian stock market. As the oldest index in the country, it provides the
time series data over a fairly long period of time (From 1979 onwards). Small wonder,
the SENSEX has over the years become one of the most prominent brands in the country.

The growth of equity markets in India has been phenomenal in the decade gone by.

Right from early nineties the stock market witnessed heightened activity in terms of
various bull and bear runs. The SENSEX captured all these events in the most judicial
manner. One can identify the booms and busts of the Indian stock market through
SENSEX.

3
 CHAPTER 2

INDUSTRY PROFILE

The Trading on stock exchanges in India used to take place through open
Outer without use of information technology for immediate matching or recording of
Trades. This was time consuming and inefficient. This imposed limits on trading volumes
and efficiency. In order to provide efficiency , liquidity and transparency, NSE introduced
A nationwide online fully automated screen based trading system where a member can
punch into the computer quantities of securities and the prices at which he likes to
Transect and the transaction is executed as soon as it finds a matching sale or buy order
From a counter party. This is also considered to be one of the main reasons for so many
people entering stock market appreciating its ease. The other main reasons are the
booming economy, and the size of market capitalization, the pool of which is enormously
Growing.

Securities market in India, deals with the four main legislations covering the
securities market are:

 The securities contracts regulation act, 1956, which provides for regulation of
transaction in securities through control over stock exchanges.

 The companies Act, 1956, which sets out the code of conduct for corporate sector in
relation to issue, allotment and transfer of securities, and disclosures to be made in
public issues.

 The SEBI Act, 1992, which establishes SEBI to protect investors and Develop and
regulate securities market.

 The depositories Act, 1996, which provides for electronic maintenance and transfer of
ownership of dematerialized securities. The securities market has two independent
and inseparable segments. The primary market and the secondary market.

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 The primary market provides the channel for creation of new securities through
issuance of financial instruments by public companies as well as governments and
government agencies and bodies whereas the secondary market helps the holders of these
financial instruments to sale for exiting from investment. The price signals which
subsume all information about the issuer and his business including associated Risk,
generated in secondary market, help the primary market in allocation of fund.

The primary market issuance is done either through public issue or private
Placement. A public issue does not limit any entity in investing while in private
placement, the issuance is done to select people. In terms of companies act, 1956, an
issue becomes public if it results in allotment to more than 50 persons. This means an
Issue resulting in allotment to less than 50 persons in private placement. There are two
Major types of issues who issue securities. The corporate entities issue mainly dept and
equity instruments. While the governments issue dept securities.

The secondary market Enables participants who hold securities to adjust their
holdings in response to changes in their assessment or risk and return. They also sell
securities for cash to meet their liquidity needs. The exchange does not provide facility
for spot trades in a strict sense. Closest to the spot market is the cash market in exchanges
where settlement takes place after sometime. Trades taking place over a trading cycle
(one day under rolling settlement) are settled together after a certain time. The stock
exchanges in the country provide facilities for trading for corporate securities. Trades
executed on NSE only are cleared and settled by clearing corporation, which provides
settlement guarantee. Nearly 100% of the trades in capital market segment are settled
through demat delivery. NSE also provides trading in derivatives of equities, interest rate
as well indices. In derivatives market, standardizes contracts are traded for future
settlement. These futures can be on a basket of securities like an index or an individual
Security. In case of options, securities are traded for conditional future delivery.

Today the market participants have the flexibility of choosing from a basket of
products like: Equities, Bonds issued by both government and companies, Futures on
benchmark indices as well as stocks, Options on benchmark indices as well as stocks.

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 CHAPTER 3

COMPANY PROFILE

One Decade of Brokerage Excellence

Coimbatore Capital is a financial services provider, operating as a stock

broker, depository participant, mutual funds distributor, IPO distributor and
insurance agent.

Coimbatore Capital is a trading member in the capital market, futures and options,
and retail debt segments of the National Stock Exchange of India Limited. It is also a
depository participant with National Securities Depository Limited. It is also a dealer in
the over the counter exchange of India Limited. A subsidiary of Coimbatore Capital is a
member of inter connected stock exchange of India Limited.

History, present business and background of the Coimbatore capital

Coimbatore Capital Limited (C-Cap) was promoted by Mr. D Balasundaram, an

industrialist and Director of K G Group of Companies along with few members of
Coimbatore Stock Exchange (CSX). Mr. Balasundaram is also the former President
& Founder Director of CSX. He is also a founder director of Interconnected Stock
Exchange of India (ISE).

C-Cap commenced its operations as a Member in the Capital Market Segment of the
National Stock Exchange of India Limited (NSE) in July 1995. The Company
commenced its services as Depository Participant of National Securities Depository
Limited (NSDL) in February, 1997. The company has become a trading & clearing
member in the derivative segment of NSE in August 2000.

C-Cap has its trading terminals in Chennai, Coimbatore, Dindigul, Erode,

Gobichettiipalayam, Karur, Hosur, Karaikal, Madurai, Neyveli, Ooty, Pondicherry,
Salem, Sivakasi, Thanjavur, Tirunelveli, Trichy, Tuticorin and Vellore, Udumalpet,
Pollachi..

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The average number of trades per VSAT done by C-Cap is much higher than the
average number of trades per VSAT in NSE.

C-Cap declared dividends, continuously from the 1st year of operations.

Features of Coimbatore capital ltd:

 Multiple exchanges on a single screen

 Intra-day calls and flash news

 Historical charts with technical tools

 Streaming quotes

 24x7 web enabled back – office

 Auto pay-in of shares

 Online transfer of funds

E-broking facility is one such effort, which gives you access to state-of-the-art trading

platform with multiple exchanges, order and trade confirmations, research reports, e-

contracts and a 24x7 on-line web enabled centralized back-office system at the click of a

button.

Customized Products:

To facilitate the diversified customers, coimbatore capital have come out with a

range of prepaid products ranging from Rs.2000 to Rs.1, 00,000. Prepaid product is a

unique marketing concept of Coimbatore capital

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Portfolio Management Services:

Coimbatore capital offers discretionary PMS to investors in order to assist them in

managing their funds amidst continuous changing market dynamics and increase

complexities of investing. Investing in equity, markets require in-depth knowledge and

thorough analysis coupled with clear understanding of domestic and international

economies. Investors need the services of an expert to manage their funds and deliver

good returns in diverse market conditions. Continuous wealth creation with an emphasis

on capital preservation in today’s complex markets. In order to systematically diversify

the holdings of clients across varied sectors and with an intention to give them handsome

returns

Mutual Fund Distribution & Advisory:

To enable clients to diversify their investments in their direction, Coimbatore capital

Ltd has added another product in its range with mutual funds:

 Customized investments solutions based individual financial goals aligned with

your risk appetite

 Access to in-depth research & proper selection from diversified funds based on

your preferred criteria

 Customized reports at desired frequency

 Ratings and rankings of all MF from our in-house expert analysts

 Current and historical performance of different funds enabling comparisons

 News and alerts for concern Portfolio and performance tracking with watch lists

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  Online MF applications/ online order status tracking/ online updation of unit

holdings at latest NAV/ online dividend payout & reinvestment facility.

Customized Research Reports

Brokerage:

Some stock trading companies charge direct percentage while others charge a

fixed amount per Rs 100. Coimbatore capital charges 0.5% for delivery trading and 0.1%

for intra day or one could say Coimbatore capital charges 50 paise per Rs 100.

To sum up, Coimbatore capital brings to the customer, a user- friendly online trading

facility, coupled with a wealth of content that will help them stalk the right shares.

Coimbatore capital's equity related services include trade execution on BSE, NSE,

Derivatives, commodities, depository services, online trading and investment advice.

Trading is available in BSE and NSE. Along with Coimbatore capital.com website,

Coimbatore capital has around 150 offices (share shops) in Tamil Nadu, Kerala and

Karnataka.

Advantages of Coimbatore capital:

1. Online trading is very user friendly and one doesn't need any software to access.

2. They provide good quality of services like daily SMS alerts, mail alerts, stock

recommendations etc.

3. Coimbatore capital has ability to transfer funds from most banks. Unlike ICICI

Direct, HDFC Sec, etc., so investor not really needs to open an account with a

particular bank as it can establish link with most modern banks.

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 CHAPTER 4

THEORITICAL FRAMEWORK

The Securities and Exchange Board of India (SEBI) is the authorized body, which
regulates the operations of stock exchanges, banks and other financial institutions. In
addition the international trading and investment exposure has made it imperative to
better operational efficiency. With the view to improve, discipline and bring greater
transparency in this sector, constant efforts are being made and to a certain extent
improvements have been made.

Indian capital market overview

Evolution

Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly
200 years ago. The earliest records of security dealings in India are meager and obscure.
The East India Company was the dominant institution in those days and business in its
loan securities used to be transacted towards the close of the eighteenth century.

Thus, earlier, there are totally twenty-three recognized stock exchanges in India
excluding the Over The Counter Exchange of India Limited (OTCEI) and the National
Stock Exchange of India Limited (NSEIL).

Trading Pattern of the Indian Stock Market

Trading in Indian stock exchanges is limited to listed securities of public limited

companies. They are broadly divided into two categories, namely, specified securities
(forward list) and non-specified securities (cash list). Equity shares of dividend paying,
growth-oriented companies with a paid-up capital of at least Rs.50 million and a market
capitalization of at least Rs.100 million and having more than 20,000 shareholders are,
normally, put in the specified group and the balance in non specified group.

A member broker in an Indian stock exchange can act as an agent, buy and sell
securities for his clients on a commission basis and also can act as a trader or dealer as a

10
principal, buy and sell securities on his own account and risk, in contrast with the practice
prevailing on New York and London Stock Exchanges, where a member can act as a
jobber or a broker only.

The nature of trading on Indian Stock Exchanges are that of age old conventional
style of face-to-face trading with bids and offers being made by open outcry. However,
there is a great amount of effort to modernize the Indian stock exchanges in the very
recent times.

Daily fluctuations or volatility

The open, high, low and close are quoted. Changes between the open and close prices or
between high and low are taken in absolute points or in percentages to reflect the daily
volatility. Such fluctuations can be worked out on weakly, monthly or a yearly basis also
to reflect the general volatility of the market. The use of this indicator is to caution the
investor against the high volatility in any scrip. But a stable up trend or downtrend can be
discerned from these changes for the investor to interpret the market. A yearly high-low
indicates the possible levels within a range that the price may move which helps to locate
entry and exist points.

National Stock Exchange (NSE)

With the liberalization of the Indian economy, it was found inevitable to lift the Indian
stock market trading system on par with the international standards. On the basis of the
recommendations of high-powered Pherwani Committee, Industrial Development

Bank of India, Industrial Credit and Investment Corporation of India, Industrial Finance

Corporation of India, all Insurance Corporations, selected commercial banks and others
incorporated the National Stock Exchange in 1992.

Trading at NSE can be classified under two broad categories:

(a) Wholesale debt market and

(b) Capital market.

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 Wholesale debt market operations are similar to money market operations -
institutions and corporate bodies enter into high value transactions in financial
instruments such as government securities, treasury bills, public sector unit bonds,
commercial paper, certificate of deposit, etc.

There are two kinds of players in NSE:

(a) Trading members and

(b) Participants.

Recognized members of NSE are called trading members who trade on behalf of
themselves and their clients. Participants include trading members and large players like
banks who take direct settlement responsibility.

Trading at NSE takes place through a fully automated screen-based trading

mechanism, which adopts the principle of an order-driven market. Trading members can
stay at their offices and execute the trading, since they are linked through a
communication network. The prices at which the buyer and seller are willing to transact
will appear on the screen. When the prices match the transaction will be completed and a
confirmation slip will be printed at the office of the trading member.

NSE has several advantages over the traditional trading exchanges. They are as follows:

• NSE brings an integrated stock market trading network across the nation.

• Investors can trade at the same price from anywhere in the country since inter-
market operations are streamlined coupled with the countrywide access to the
securities.
• Delays in communication, late payments and the malpractice’s prevailing in the
traditional trading mechanism can be done away with greater operational
efficiency and informational transparency in the stock market operations, with
the support of total computerized network.

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 Unless stock markets provide professionals service, small investors and foreign
investors will not be interested in capital market operations. And capital market being one
of the major sources of long-term finance for industrial projects, India cannot afford to
damage the capital market path. In this regard NSE gains vital importance in the Indian
capital market system.

Bombay Stock Exchange (BSE) – Sensex

For the premier Stock Exchange that pioneered the stock broking activity in
India, 128 years of experience seems to be a proud milestone. A lot has changed since
1875 when 318 persons became members of what today is called "The Stock Exchange,
Mumbai" by paying a princely amount of Re1. Since then, the country's capital markets
have passed through both good and bad periods. The journey in the 20th century has not
been an easy one. Till the decade of eighties, there was no scale to measure the ups and
downs in the Indian stock market. The Stock Exchange, Mumbai (BSE) in 1986 came out
with a stock index that subsequently became the barometer of the Indian stock market.

SENSEX is not only scientifically designed but also based on globally accepted
construction and review methodology. First compiled in 1986, SENSEX is a basket of 30
constituent stocks representing a sample of large, liquid and representative companies.
The base year of SENSEX is 1978-79 and the base value is 100. The index is widely
reported in both domestic and international markets through print as well as electronic
media.

The Index was initially calculated based on the "Full Market Capitalization" methodology
but was shifted to the free-float methodology with effect from

September 1, 2003. The "Free-float Market Capitalization" methodology of index

construction is regarded as an industry best practice globally. All major index providers
like MSCI, FTSE, STOXX, S&P and Dow Jones use the Free-float methodology.

Due to is wide acceptance amongst the Indian investors; SENSEX is regarded to be the
pulse of the Indian stock market. As the oldest index in the country, it provides the time

13
series data over a fairly long period of time (From 1979 onwards). Small wonder, the
SENSEX has over the years become one of the most prominent brands in the country.

The growth of equity markets in India has been phenomenal in the decade gone by.

Right from early nineties the stock market witnessed heightened activity in terms of
various bull and bear runs. The SENSEX captured all these events in the most judicial
manner. One can identify the booms and busts of the Indian stock market through
SENSEX.

14
 CHAPTER 5

Objectives:

Primary objective:

• To study factors influencing the volatility in Indian stock market

Secondary objective:

• To study the major factors and events affects the index volatility for a particular
month.

• To study the relationship between the nifty and overall market turnover
fluctuation.

• To identify the relationship between the sensex and SBI stock price fluctuation.

15
 CHAPTER 6
RESEARCH METHODOLOGY

6.1 Need Of The Study

It is well known that money is the blood of life. This analytical research is made
which tries to shows the factors which are making stock market volatile. To know the
factors influence the market.

To see the given volatile economic conditions, the market is efficient to any news
and information. Technical analysis involves calculation and includes the drawings of
graphs to track the existing movement. It helps the investors in making decision whether
to buy or sell the shares.

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6.2 Scope of the study

The study is conducted with the price movement under Nifty and Sensex for the
period from October 2009 to December 2010. The project work is confined to finance
department only. This study engages in financial statement analysis like technical
analysis, Fundamental analysis hypothesis have been used. Based on analysis some
findings and recommendations are given. This study helps to know the reasons for
volatility in Stock Market. This study can also be used as a referral for other forth coming
studies in the similar field.

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6.3 Research Design

Analytical Research:

The research design adopted for this study is analytical. Involves in-depth
study and evaluation of available information in an attempt to explain complex
phenomenon. The researcher has to use facts or information already available and
analyze these to make a critical evaluation of the material.

Methodology of the Study:

The research tools employed for the data gathering where mainly secondary data
which was used for the study.

Period of Study: -

The statements are extracted from weekly reports. Research reports and statistical
records, which are under the core of finance department. The Period of study is being
limited to 45 days.

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6.4 Data Collection
Sources of Data:-

Company's Catalogue and nifty and sensex index are the main source of
secondary data. Research and analysis have been taken from analyzed weekly reports
available published records like newspapers, magazines and websites of the organization.
The stock prices for the last 3 yrs were collected from 1 fine and lists enclosed in it.

6.5 Statistical Analysis

Rank correlation:
Rank correlation is the study of relationships between different rankings on the
same set of items. A rank correlation coefficient measures the correspondence between
two rankings and assesses its significance. A perfect Spearman correlation of +1 or −1
occurs when each of the variables is a perfect monotone function of the other.

Correlation:

Correlation analysis is done to find out the relationship between two given
parameters. If the value so obtained is positive, it is called positive correlation and if the
value so obtained is negative, it is called negative correlation.

Formula:

N∑XY-(∑X)(∑Y)

√N∑X2 – (∑X) 2 √N∑Y2 – (∑Y) 2

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6.6 Limitations Of The Study

• Due to time constraints the figure available only for the 6 months

• Most of the micro factors which affect the fluctuations are not able to give present

• The opinion elicited from the research cannot be taken as the opinion of whole
population.

• Since the analysis has been constructed on the basis of data available, the inherent
limitations of financial statement are the limitations of the analysis.

20
 CHAPTER 7
ANALYSIS AND INTERPRETATION

Table No 1: Table showing the Nifty October 2009

Turnover
Date Open High Low Close (Rs. Cr)
01 5087.2 5110.5 5057.05 5083.4 10100.1
05 5076.05 5076.05 4991.95 5003.2 9807.7
06 5003.65 5034.7 4921.05 5027.4 12542.57
07 5031.7 5077 4972.95 4985.75 10939.13
08 5011.25 5043.05 4971.75 5003.21 12051.82
09 4993 5032.6 4934.55 4945.2 9481.39
12 4945.45 5068.05 4945.45 5054.25 8342.17
14 5054.35 5127.4 5054.35 5118.2 10025.05
15 5118.55 5152.25 5077.1 5108.85 9833.7
16 5108.65 5149.65 5093.2 5142.15 9471.33
17 5159.35 5176.8 5124.25 5141.8 1697.89
20 5145.6 5181.95 5102.65 5114.45 8313.74
21 5114.85 5117.45 5051.65 5063.6 8374
22 5063.35 5064.25 4968.45 4988.6 8830.32
23 4986.55 5054.95 4983.25 4997.05 9106.05
26 4997.15 5033.75 4961.35 4970.9 7658.71
27 4970.55 4970.55 4829.5 4846.7 11514.15
28 4846.55 4867 4784.1 4826.15 10325.07
29 4826.1 4826.1 4738.4 4750.55 12068.69
30 4751.1 4853.65 4687.5 4711.7 11459.69

Interpretation:

21
 In October Nifty starts with 5087.2 and found decline slightly over the second
week finally it reached 4993.45 but the market turnover for the 2nd week is high. The
turnover reaches a peak of 12542.57 (Rs. Crore)

In 2nd week NSE move upward gradually and advanced 150 point over the period.
The market turnover with a high fluctuation during this week. The turnover with a down
fall movement of 1697.89 on 17 October

NSE starts to decline step by step from 5145.6 to 4986.55. The market turnovers
fluctuate more throughout the week. Right through from Monday the NSE turn down to
4751.1 on 30th October. Market turnover hits the highest points during the 4th week.

Chart No 1 – Chart showing the Nifty October 2009

22
 nifty october 2009

5300

5200

5100

5000
Open
4900 High
4800 Low
Close
d
x
e n
ifty

4700

4600

4500

4400
9
/2
0
1
9
2
/3
0
1
9
2
/5
0
1
9
2
/7
0
1
2
/9
0
1
9
/2
0
1
9
2
/3
0
1
9
2
/5
0
1
9
2
/7
0
1
2
/9
0
1
9
/2
0
1
9
3
/2
0
1
9
5
/2
0
1
9
7
/2
0
1
9
/2
0
1
date

Table No 2: Table showing Sensex October 2009

23
 Date Open High Low Close
10/01/09 17186.20 17195.61 17059.36 17134.55
10/05/09 17062.01 17062.01 16835.80 16866.41
10/06/09 16879.38 16988.56 16622.05 16958.54
10/07/09 17069.42 17120.56 16764.07 16806.66
10/08/09 16908.02 16998.52 16775.36 16.843.54
10/09/09 16915.96 16963.08 16606.95 16642.66
10/12/09 16687.32 17068.78 16687.32 17026.67
10/13/09 17117.90 17274.59 17117.90 17231.11
10/14/09 17274.07 17350.39 17092.83 17195.20
10/15/09 17196.80 17347.85 17126.55 17322.82
10/16/09 17452.56 17493.17 17260.66 17326.01
10/19/09 17414.80 17457.26 17185.04 17223.0
10/20/09 17229.72 17248.69 16997.86 17009.17
10/21/09 17031.54 17031.84 16721.26 16789.74
10/22/09 16795.66 17006.77 16765.20 16810.81
10/23/09 16808.05 16938.88 16706.08 16740.50
10/26/09 16699.09 16699.09 16311.50 16353.40
10/27/09 16335.78 16411.14 16144.17 16283.49
10/28/09 16191.39 16264.09 15993.83 16052.72
10/30/09 16135.87 16360.88 15805.20 15896.28

Interpretation:

In 1st week the BSE low down with 16,642.66 which lost 491.89 points. The
market face obstacle to come up with its normal point. During the second week of

24
October the index reach the peak at 17493.17with high volume of trade. The traders start
to sell their shares when the share price increases.

At some point in 3rd week of October the bse begin to turn down due to various
economic factors. In 4th week the sensex progressively diminish and closed at 15896.28.
The sensex lost 1238.27 points when compare to the first day of the month. The Market
starts to weaken at the end of the month.

Chart No 2: Chart showing the Sensex October 2009

25
Major Factors and Events affect the market:

26
 • The software setup announced Q2 September 2009 results on Wednesday (11
October 2009).

• Infosys has revised upwards its EPS and revenue growth guidance for FY 2010
(year ending 31 March 2009).

• For the first time in history, the Dow Jones Industrial finished above the 12,000
mark on 8Thursday.

• Higher crude oil prices weighed on the market sentiment and rumours that Prime
Minister Manmohan Singh may resign following a decision of not proceeding
with disinvestment in state-run firms, leading to a sell off on Friday. The prime
minister’s office denied the rumour.

• The Sensex reduced 76.8 points on 14th due to increase in crude oil price.

• Under the new rules, foreign direct investment will be limited at 26%, while
foreign portfolio investments will be capped at 23% in all such entities, the central
bank said.

Table No 3: Table showing the Nifty November 2009

27
 Turnover
Date Open High Low Close (Rs. Cr)
11/03/09 4712.25 4729.85 4538.5 4563.9 10141.77
11/04/09 4567.3 4717.8 4565 4710.8 9466.04
11/05/09 4711.65 4776.35 4610.6 4765.55 9405.39
11/06/09 4767.5 4836.2 4764.85 4796.15 8883.6
11/09/09 4796.15 4905.25 4789.9 4898.4 8196.63
11/10/09 4898.9 4947.7 4860.1 4881.7 10543.75
11/11/09 4882.3 5016.7 4870.05 5003.95 8792.44
11/12/09 5004.4 5014.4 4924.75 4952.65 9208.49
11/13/09 4952.35 5017.9 4942.65 4998.95 7494.31
11/16/09 4996.5 5073.2 4994 5058.05 7043.04
11/17/09 5058.95 5074 5010.15 5062.25 7812.63
11/18/09 5061.5 5079.3 5041.65 5054.7 8091.52
11/19/09 5043.95 5053.45 4963.7 4989 7711.46
11/20/09 4988.75 5063.3 4932.8 5052.45 8643.31
11/23/09 5052.95 5113.1 5052.1 5103.55 7446.11
11/24/09 5105 5112.85 5053.5 5090.55 7621.19
11/25/09 5091.55 5138 5078.35 5108.15 7277.12
11/26/09 5116.45 5116.45 4986.05 5005.55 9534.57
11/27/09 5005.05 5005.05 4806.7 4941.75 9312.59
11/30/09 4942.25 5066.35 4942.25 5032.7 8574.32

Interpretation:

28
 In November market does not perform better when compare to other months. The
index and turnover faced hammering situation. The market starts with 4712.25 on 3rd
November. In the first week turnover and index goes hand in hand.

On 9th November swing more the NSE gained 200 points during the second week.
In 3rd week the market gained 98 point to settle at 5052.45 after the RBI came out with a
surprise 0.5% hike in cash reserve ratio (CRR), after market hours on Friday (8
December).

For the period of last week while the Nifty lost 20 points, to settle at 5032.7 for
the week ended Friday, (27 November)

Chart No: 3 – Chart Showing the Nifty November 2009

29
Table No: 4 – Table showing the Sensex November 2009

30
 Date Open High Low Close
11/03/09 15838.63 15957.06 15330.56 15404.94
11/04/09 15487.97 15929.09 15487.97 15912.13
11/05/09 15926.13 16092.38 15564.89 16063.90
11/06/09 16137.42 16283.86 16075.19 16158.28
11/09/09 16190.79 16517.42 16147.21 16498.72
11/10/09 16552.43 16677.53 16371.66 16440.56
11/11/09 16444.44 16887.80 16405.19 16849.60
11/12/09 16822.18 16896.62 16605.01 16696.03
11/13/09 16693.15 16909.74 16666.70 16848.83
11/16/09 16893.11 17083.20 16893.11 17032.51
11/17/09 17036.23 17080.17 16882.98 17050.65
11/18/09 17032.01 17098.79 16958.41 16998.78
11/19/09 17004.98 17004.98 16712.33 16785.65
11/20/09 16772.75 17041.79 16635.75 17021.85
11/23/09 17067.14 17214.58 17045.02 17180.18
11/24/09 17230.86 17230.86 17027.52 17131.08
11/25/09 17149.08 17290.48 17124.15 17198.95
11/26/09 17199.05 17202.51 16808.87 16854.93
11/27/09 16718.80 16718.80 16210.44 16632.01
11/30/09 16655.75 17026.91 16655.75 16926.22

Interpretation:

31
 On November the market starts with 15838.63 points and starts to increase over
the month. 1st week Nifty ends with 16075.19 which gains 236.56 points. The index
reach a peak on 6th is 16283.86.

During the 2nd week the nifty begin with 16190.79 points and starts to boost on
the week. 2st week Nifty close with 16848.83 which achieve 658.04 points. The index
reach a peak on 13th is 16909.74.

3rd week Nifty starts with 16893.11 point on 16th and ends with 17021.85. The
market gains 128.74 which less than the 2nd week. Throughout the 4th week index start
with 17067.14 and turn down to 16926.22. October Index faces a least point of 15330.56
on 3rd.

Chart No: 4 – Chart Showing the Sensex November 2009

32
33
Major Factors and Events affect the market:

• Reserve Bank of India in its mid-term review of annual policy kept Reverse Repo
rate unchanged at 6%, while the Repo rate was raised by 25 basis points to 7.25%.

• Airliners rose on reports that they are to raise airfares between 3 - 5%. Reports
also add that the number of low-priced tickets available on each flight is also
likely to be reduced as a cost-cutting measure.

• The market sentiment was consider down by weak global markets and crude oil
prices touching a record high of above $78 a barrel during 4st week

• Due to affairs of state, belief and rumors that Prime Minister Manmohan Singh
may resign following a decision of not proceeding with disinvestment in state-run
firms, leading to a sell off.

• Concerns of a rise in domestic interest rates have eased after the US Federal
Reserve kept US rates unchanged.

• The Reserve Bank of India permitted foreign investment up to 49% in stock

exchanges, paving the way for New York Stock Exchange (NYSE) to expand into
Asia's best performer.

• In October the index jumped up to 5108.15 because of more Foreign Direct

Investment (FDI) in India.

34
Table No: 5 –Table Showing the Nifty December 2009

Turnover
Date Open High Low Close (Rs. Cr)
12/01/09 5039.7 5130.35 5038.85 5122 8492.32
12/02/09 5122.75 5161.75 5111.75 5123.25 9308.75
12/03/09 5124.55 5181 5106.6 5131.7 7683.05
12/04/09 5131.7 5161.8 5081.85 5108.9 6960.55
12/07/09 5108.85 5131.3 5051.55 5066.7 6588.43
12/08/09 5068.55 5152.55 5058.9 5147.95 7547.17
12/09/09 5147.65 5147.65 5090.6 5112 7722.75
12/10/09 5112.4 5146.45 5084.65 5134.65 7096.21
12/11/09 5136.05 5182.55 5088.4 5117.3 7248.57
12/14/09 5117.45 5156.7 5090.15 5105.7 6543.06
12/15/09 5105.75 5129.45 5018.25 5033.05 7220.77
12/16/09 5032.95 5067.25 5001.8 5042.05 7124.61
12/17/09 5046.65 5064.2 5013.15 5041.75 7063.39
12/18/09 5042 5043.4 4979.05 4987.7 6833.57
12/21/09 4983.65 4997.85 4943.95 4952.6 6022.7
12/22/09 4953.35 4997.3 4953.35 4985.85 5249.29
12/23/09 4990.05 5150.6 4990.05 5144.6 7599.02
12/24/09 5144.8 5197.9 5129.05 5178.4 6459.65
12/29/09 5180.75 5214.6 5175.85 5187.95 5480.14
12/30/09 5188.75 5197.05 5160.1 5169.45 4922.14
12/31/09 5171.2 5221.85 5168.75 5201.05 7236.94

35
Interpretation:

The market starts with 5039.7 in 1st week of December the nifty index movement
turn down due to more spending and FII withdrawals. The nifty lost 69 points at the end
of 4th December. The market turnover faces a downward slope when compare to previous
month.

In 2nd week nifty starts with 5108.85 on 7th. Market travel very bit by bit during
this month. Index ends with 5117.3 on Friday. During 3rd week index defeat 129.75
points and the market starts to decline for the next week.

During 4th week nifty and turnover faced downward. Market starts with 4983.65
and ends with 5178.4 which gains 194.75. Nifty faced a lowest point of 4943.95 on 21st.

36
Chart No: 5 – Chart showing the Nifty December 2009

Table No: 6 – Table showing the Sensex December 2009

37
 Date Open High Low Close
12/01/09 16947.64 17218.46 16947.46 17198.27
12/02/09 17226.49 17329.68 17142.36 17169.91
12/03/09 17199.64 17361.27 17128.21 17185.68
12/04/09 17182.23 17291.83 17032.81 17101.54
12/07/09 17106.74 17176.62 16943.01 16983.14
12/08/09 16984.54 17237.79 16964.11 17227.68
12/09/09 17204.32 17227.96 17057.37 17125.22
12/10/09 17107.00 17231.05 17032.30 17189.31
12/11/09 17199.74 17351.71 17056.12 17119.03
12/14/09 17118.14 17275.19 17048.17 17097.55
12/15/09 17150.59 17200.47 16835.78 16877.16
12/16/09 16866.95 16996.12 16777.94 16912.77
12/17/09 16912.25 16979.52 16826.00 16894.25
12/18/09 16855.91 16899.19 16693.06 16719.83
12/21/09 16724.84 16750.99 16577.78 16601.20
12/22/09 16633.81 16738.12 16633.81 16692.00
12/23/09 16723.96 17252.09 16723.96 17231.11
12/24/09 17265.47 17413.69 17198.09 17360.61
12/29/09 17388.67 17486.05 17372.63 17401.56
12/30/09 17402.24 17440.05 17322.80 17343.82

Interpretation:

In December sensex points starts with 16947.64 and starts increasing slightly over
the first week finally it reached 17101.54. The sensex gain 153.9 for the 1st week

38
 In 2nd week sensex move upward gradually and advanced 13.71 point over the
period. In sensex the market turnover with a high fluctuation during this week. The
sensex ends with 17119.03.

During third week sensex points starts to decline step by step from 17118.14
to16719.83. In 4th week index start with 16724.84 and turn down to 17360.61. October
Index faces a least point of 16577.78 on 21rd.

Chart No: 6 – Chart showing the Sensex December 2009

39
Major Factors and Events affect the market:

40
 • The domestic economy grew by 9.2% in the July-September quarter from a year
earlier, higher than market expectations of 8.90%.

• Oil & refinery stocks slipped after the government announced a cut in retail prices
of diesel and petrol by Re 1 and Rs. 2, respectively.

• The RBI hiked cash reserve ratio (CRR) by 50 basis points after trading hours
Friday (8 December). The RBI move fuelled expectations of rise in lending and
deposit rates by Indian banks

• Companies like Reliance and Infosys starts spending on capital.

• FIIs resumed buying this week and invested to the tune of Rs 1,025.5 crore for the
first three days of the week. In June they invested Rs 479.50 crore.

• Foreign institutional investors (FII) withdrawals of Rs 653.7 crore in the equity

segment in this December month

• A Japanese investment firm and SBI Holdings agreed to form a $100 million
venture capital fund with India's largest lender. OTCEI has widely dispersed
trading mechanism across the country, which provides greater liquidity and lesser
risk of intermediary charges.

Table No: 7 – Table showing the Nifty January 2010

41
 Turnover
Date Open High Low Close (Rs. Cr)
01/04/10 5200.9 5238.45 5167.1 5232.2 6531.61
01/05/10 5277.15 5288.35 5242.4 5277.9 7969.62
01/06/10 5278.15 5310.85 5260.05 5281.8 7892.6
01/07/10 5281.8 5302.55 5244.75 5263.1 6890.99
01/08/10 5264.25 5276.75 5234.7 5244.75 7777.04
01/11/10 5263.8 5287.2 5227.8 5249.4 11080.55
01/12/10 5251.1 5300.5 5200.95 5210.4 8648.49
01/13/10 5212.6 5239.2 5169.55 5233.95 8430.48
01/14/10 5234.5 5272.85 5232.5 5259.9 7824.43
01/15/10 5259.9 5279.85 5242.45 5252.2 6927.87
01/18/10 5253.65 5292.5 5228.95 5274.85 6659.87
01/19/10 5274.2 5287.8 5218.65 5225.65 6197.52
01/20/10 5226.1 5256.7 5201.4 5221.7 7170.51
01/21/10 5220.2 5220.35 5085.45 5094.15 7943.76
01/22/10 5094.15 5094.15 4954.85 5036 10414.08
01/25/10 5034.55 5035.7 4983.05 5007.9 5714.17
01/27/10 5008.5 5008.5 4833.05 4853.1 9800.33
01/28/10 4863 4929.9 4824.95 4867.25 10614.04
01/29/10 4866.15 4893.7 4766 4882.05 10116.63

Interpretation:

In January Nifty points starts with 5200.9 and second week index move up and
down finally it reached 5244.75. The turnover faces downward movement (Rs. Crore)

42
 In 2nd week nifty move step by step movement over the period. The market
turnover with a high fluctuation during this week. The turnover reaches a peak of
11080.55 on 17 October

Nifty points starts to decline step by step from 5253.65 to 4882.05. The market
turnovers fluctuate more throughout the week. The market turnover starts to increase over
the 4th week

43
 Chart No: 7 – Chart showing the Nifty January 2010

Nifty january 2010

5400
5300
5200 Open
5100
5000 High
4900
4800 Low
4700
d
In
x
e

4600 Close
4500
4400

Date

44
Table No: 8 – Table showing the Sensex January 2010

Date Open High Low Close

01/04/10 17473.45 17582.84 17378.38 17558.73
01/05/10 17555.77 17729.78 17555.77 17686.24
01/06/10 17719.47 17990.33 17636.71 17701.13
01/07/10 17701.97 17733.34 17566.54 17615.72
01/08/10 17603.87 17658.12 17508.96 17540.29
01/11/10 17724.59 17776.57 17500.79 17526.71
01/12/10 17534.16 17612.00 17392.55 17422.51
01/13/10 17368.03 17528.31 17276.46 17509.80
01/14/10 17525.71 17628.04 17525.71 17584.87
01/15/10 17604.31 17639.85 17529.11 17554.30
01/18/10 17538.72 17712.60 17505.50 17641.08
01/19/10 17650.82 17664.86 17463.78 17486.06
01/20/10 17486.69 17590.59 17425.05 17474.49
01/21/10 17474.49 17465.45 17025.26 17051.14
01/22/10 16978.36 17000.33 16608.09 16859.68
01/25/10 16847.70 16877.77 16705.56 16780.46
01/27/10 16708.66 16708.60 16230.85 16289.82
01/28/10 16317.16 16524.69 16182.14 16306.87
01/29/10 16253.82 16390.31 15982.08 16357.96

Interpretation:

45
 In 1st week the sensex index Start high with 17473.45 which gained 129.63
points. The market face obstacle to come up with its normal point. During the first week
of October the index reach the peak at 17990.33 with high volume of trade. The traders
start to sell their shares when the share price increases.

At some point in 3rd week of October the sensex points starts to turn upward
movement due to various economic factors.

In 5th week the sensex progressively diminish and closed at 16357.96. The sensex
lost 1115.49 points when compare to the first day of the month. The Market starts to
weaken at the end of the month.

Chart No: 8 – Chart showing the Sensex January 2010

46
Major Factors and events affect the market:

47
• The market-friendly Budget 2006-07 and finance bill announced by the Finance
Minister, Dr Manmohan Singh.

• Indian government issued Tax circular regarding transaction tax to Foreign

institutional investors FII.

• The Sensex plunged 490.62 points on 27th as Asian markets closed weak.

• Concerns over possible sales by hedge funds also added to the weak sentiment, as
it bred speculation that such funds may book profits in the Indian equity market to
make up for losses suffered in energy related investments.

• Cement shares edged higher on expectations of strong Q1 results.

• Budget airline SpiceJet advanced 6.33% to Rs 56.25, after Tata group on Monday
said it had picked up `less than 10% stake' as a purely financial investment.

• Mutual funds sold equities worth Rs. 101.97 crore.

• US Federal Reserve kept interest rates unchanged on for the fourth straight time,
as worries about inflation continued to overshadow concerns about the slowing
economy

• The metal index was the worst hit in the bearish market

48
Table No: 9 – Table showing the Nifty February 2010

Turnover
Date Open High Low Close (Rs. Cr)
02/01/10 4882.05 4918.8 4827.15 4899.7 7255.33
02/02/10 4907.85 4951.15 4814.1 4830.1 7927.05
02/03/10 4831 4949.15 4831 4931.85 6448.29
02/04/10 4931.3 4931.3 4832.35 4845.35 6169.35
02/05/10 4819.65 4827 4692.35 4718.65 7609.87
02/06/10 4712.75 4768.15 4712.75 4757.25 643.11
02/08/10 4755.35 4799.05 4675.4 4760.4 6823.11
02/09/10 4760.55 4810.4 4739.35 4792.65 5819.47
02/10/10 4793 4826.85 4748.1 4757.2 6196.72
02/11/10 4757.25 4843.8 4757.25 4826.85 4917.21
02/15/10 4827.9 4845.6 4783.9 4801.95 5004.68
02/16/10 4801.8 4880 4791.35 4855.75 5240.97
02/17/10 4858.65 4929.7 4857.6 4914 6291.08
02/18/10 4915.1 4922.05 4873.7 4887.75 5763.98
02/19/10 4887.3 4887.3 4805.55 4844.9 5737.99
02/22/10 4849.35 4912.05 4845.9 4856.4 4591.6
02/23/10 4856.6 4884.1 4833.15 4870.05 4617.62
02/24/10 4869.55 4880.55 4834.65 4858.6 4842.23
02/25/10 4859 4880.15 4835.6 4859.75 6427.68
02/26/10 4858.5 4992 4858.45 4922.3 10987.94

Interpretation:

In October Nifty points starts with 4882.05 and starts decline slightly over the
first week finally it reached 4757.25. The turnover reaches a lowest of 643.11 (Rs. Crore)

49
 In 2nd week nifty move downward gradually and lost 71.49 point over the period.
The NSE The market turnover with a high fluctuation during this week. The turnover
with a less volatile movement

Nifty points starts with 4827.9 and end with 4844.9. The market turnovers
fluctuate more throughout the week.

Right through from Monday the nifty index turn up and ends with 4922.3 on 26 th
January. Market turnover hits the highest points of 10987.94 during the 4th week.

50
 Chart No: 9 – Chart showing the Nifty February 2010

Nifty february 2010

5050
5000
4950
4900 Open
4850 High
4800
4750 Low
4700
d
In
x
e

4650 Close
4600
4550
4500

Date

51
Table No: 10 – Table showing the Sensex February 2010

Date Open High Low Close

02/01/10 16339.32 16422.46 16160.80 16356.03
02/02/10 16368.44 16525.98 16129.11 16163.44
02/03/10 16210.25 16552.99 16210.25 16496.05
02/04/10 16500.29 16508.22 16188.80 16224.95
02/05/10 16222.56 16222.56 15725.43 15790.93
02/06/10 15807.75 15951.07 15807.75 15915.65
02/08/10 15931.34 16061.41 15651.99 15935.61
02/09/10 15940.73 16094.13 15862.96 16042.18
02/10/10 16042.18 16141.13 15892.01 15922.17
02/11/10 15928.28 16202.87 15928.28 16152.59
02/15/10 16186.90 16227.04 16011.82 16038.35
02/16/10 16042.18 16310.39 16021.29 16226.68
02/17/10 16228.91 16480.89 16228.91 16428.91
02/18/10 16421.20 16452.51 16287.17 16327.84
02/19/10 16256.53 16301.94 16074.58 16191.63
02/22/10 16191.32 16423.23 16191.32 16237.05
02/23/10 16213.14 16324.93 16178.91 16286.32
02/24/10 16218.68 16328.44 16187.44 16255.97
02/25/10 16264.10 16329.33 .16167.13 16254.20
02/26/10 16255.33 16669.25 16249.67 16429.55

Interpretation:

52
 In 1st week the sensex begin with 16,339.32 and ends with 15915.65. The market
faces a down ward movement which lost 423.67 points. The index reaches a least point
on 5th with 15725.43.

During the second week the market face obstacle to come up with its normal point
and ends with 16152.59.

At some point in 3rd week of February the sensex points fluctuate up and down
and end with 16191.63. In 4th week the sensex progressively increase and closed at
16429.55. The market reaches a peak on 26th Friday with 16429.55.

Chart No: 10 –Chart showing the Sensex February 2010

53
54
Major Factors and events affect the market:

• FIIs invested to the tune of Rs 653.7 crore in the equity segment for the first four
days of the week.

• Crude oil price declined sharply by about $ 4 a barrel during the week following a
truce in the Middle East that came into force from Monday (15 February).

• The domestic economy decline by 8.90% in the quarter1 from a year earlier,
lesser than market expectations of 9.2%.

• The Reserve Bank of India (RBI's)'s draft circular prescribing tighter guidelines
for banks’ capital market exposure had resulted in Sensex tumbling over 200
points in intra-day trade on that day.

• Metal shares turned volatile, tracking volatile metal prices on the London Metal
Exchange.

• Foreign institutional investors (FII) withdrawals its equity segmentations in the

market Soaring global crude oil price and concerns that the US Federal Reserve
may increase interest rates, led to a fall of the market on Monday, as the Sensex
lost 53.87 points.

• FIIs invested in equities to the tune of Rs 665 crore for the first three days of the
Week.

• FMCG stocks rose following the advance of the summer.

Table No: 11 –table showing the Nifty March 2010

55
 Date Open High Low Close
03/02/10 4935.6 5029.45 4935.35 5017
03/03/10 5015.8 5093.25 5015.1 5088.1
03/04/10 5096.95 5096.95 5049 5080.25
03/05/10 5080.55 5118.65 5068.05 5088.7
03/08/10 5092.15 5147.1 5092.15 5124
03/09/10 5121.05 5131.8 5094.35 5101.5
03/10/10 5101.6 5137.4 5092.05 5116.25
03/11/10 5116.35 5152.6 5102.1 5133.4
03/12/10 5131.8 5158.1 5122.1 5137
03/15/10 5134.45 5151.05 5101.2 5128.9
03/16/10 5128.95 5209.25 5125.7 5198.1
03/17/10 5198.45 5260.5 5177.15 5231.9
03/18/10 5232.55 5255.65 5214.4 5245.9
03/19/10 5246.8 5269.95 5237.1 5262.8
03/22/10 5260.95 5260.95 5187.05 5205.2
03/23/10 5205.85 5243.6 5193.4 5225.3
03/25/10 5225.3 5267.3 5202.95 5260.4
03/26/10 5260.55 5293.75 5260.55 5282
03/29/10 5283.9 5329.55 5242.15 5302.85
03/30/10 5302.95 5325 5251.35 5262.45

Interpretation:

In March Nifty points starts with 4935.6 and starts increase slightly over the first
week finally it reached 5088.7 which gains 153.1.

56
 In 2nd week nifty move upward gradually and advanced 44.85 point during the
week. Nifty points start to increase step by step from 5092.15 to 5137. The market
turnovers fluctuate more throughout the week.

During the 3rd week index starts with 5134.45 and ends with 5237.1 which gains
102.65 points. In 4th week nifty reached a peak of 5329.55 on 29th Monday. For this
month nifty gained 326.85 points.

Chart No: 11 – Chart showing the Nifty March 2010

57
Table No: 12 – Table showing the Sensex March 2010

Date Open High Low Close

03/02/10 16438.45 16808.69 16438.45 16772.56
03/03/10 16778.29 17012.61 16778.29 17000.01

58
 03/04/10 17013.68 17024.96 16888.05 16971.70
03/05/10 16988.29 17097.71 16936.12 16994.49
03/08/10 17034.92 17187.55 17034.92 17102.60
03/09/10 17089.22 17130.83 17031.21 17052.54
03/10/10 17072.94 17183.51 17027.92 17098.33
03/11/10 17087.63 17215.07 17054.28 17167.96
03/12/10 17176.02 17244.54 17126.93 17166.62
03/15/10 17166.97 17195.49 17061.14 17164.99
03/16/10 17169.84 17416.55 17150.06 17383.18
03/17/10 17389.47 17576.78 17389.47 17490.08
03/18/10 17492.81 17548.13 17417.61 17519.26
03/19/10 17531.47 17600.87 17502.14 17578.23
03/22/10 17481.96 17559.18 17337.38 17410.57
03/23/10 17422.51 17530.79 17356.64 17451.02
03/25/10 17458.51 17575.23 17383.21 17558.85
03/26/10 17558.85 17682.94 17558.85 17644.76
03/29/10 17639.18 17793.01 17639.18 17711.35
03/30/10 17703.67 17783.35 17558.22 17590.17

Interpretation:

In 1st week the sensex low down with 16,438.45 and ends with 16994.49. The
market face obstacle to come up with its normal point. During the second week of March
the index faces upward movement and gains 132.3 points.

59
 During 3rd week index starts with 17166.97 and ends with 17578.23 which gains
411.26 points. In 4th week the sensex progressively increase and closed at 17644.76.

The sensex gain 1151.72 points when compare to the first day of the month. The
Market starts to move upward during this month. The traders start to sell their shares
when the share price increases.

Chart No: 12 - Chart whoing the Sensex March 2010

60
Major Factors and events affect the market:

61
 • SEBI, on Wednesday (13March), made amendments in the SEBI Foreign
Institutional Investors (Second Amendment) to treat overseas-registered or
incorporated pension funds, mutual funds, investment trusts, insurance
companies, reinsurance companies, international multilateral agencies, foreign
governmental agency or a foreign central bank as an FII.

• The market also rose on expectations that the RBI may keep short-term interest
rates unchanged at its credit policy meeting next month.

• FIIs invested to the tune of Rs 653.7 crore in the equity segment for the first four
days of the week.

• India's industrial production rose 12.4% in July from a year earlier, higher than
expected, due to robust manufacturing and electricity output, government data
released showed on Tuesday.

• Metal stocks advanced as prices firmed up on the London Metal Exchange.

• Pharma major Dr Reddy’s Labs advanced 1.11% in a week, to close at Rs 746.30. The
company is reportedly on the look out for acquisitions in Italy and Spain, and plans to
expand into Europe.

7.2 : STATISTICAL TOOLS

Rank Coorelation:

62
 1. CORRELATIONS BETWEEN JANUARY NIFTY AND MARKET

TURNOVER.

TABLE NO: 13

Xi Yi rank xi rank yi di
Nifty Turnover
4899.7 7255.33 18 17 1 1
4830.1 7927.05 8 19 (11) 121
4931.85 6448.29 9 15 (6) 36
4845.35 6169.35 11 11 0 0
4718.65 7609.87 1 18 (17) 289
4757.25 643.11 3 1 2 4
4760.4 6823.11 4 16 (12) 144
4792.65 5819.47 5 10 (5) 25
4756.2 6196.72 2 12 (10) 100
4826.85 4917.21 7 5 2 4
4801.95 5004.68 6 6 0 0
4855.75 5240.97 12 7 5 25
4914 6291.08 19 13 6 36
4887.75.9 5763.98 17 9 8 64
4844.9 5737.99 10 8 2 4
4856.4 4591.6 13 2 11 121
4870.05 4617.62 16 3 13 169
4858.6 4842.23 14 4 10 100
4859.75 6427.68 15 14 11 121
4922.3 10987.94 20 20 0 0
total 1364

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Formula:

Calculation:

P=1– 6 * 1364

20 [(20)2 – 1]

P = 1 – 8184 / 7980

P = -0.0256

Interpretation:

Spearman correlation coefficient is negative 0.0256 therefore Turnover tends to

decrease when Nifty increases, the. This low value shows that the correlation between

Nifty and turnover is very low.

2. CORRELATIONS BETWEEN SBI AND SENSEX FOR THE MONTH OF

MARCH 2010

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 TABLE NO: 14

FORMULA:

N∑XY-(∑X) (∑Y)

SBI X Sensex Y XY X2 Y2
1988.50 16772.56 33352235.56 3954132.25 281318769.00
2019.65 17000.01 34334070.2 4078986.123 289000340.00
2032.65 16971.70 34497526.01 4131666.023 288038600.9
2046.45 16994.49 34778374.06 4187957.603 288812690.4
2070.25 17102.60 35406657.65 4285935.063 292498926.8
2043.85 17052.54 34852833.88 4177322.823 290789120.5
2036.10 17098.33 34813909.71 4145703.21 292352888.8
2045.25 17167.96 35112770.19 4183047.563 294738850.6
2045.50 17166.62 35114321.21 4184070.25 294692842.2
2015.90 17164.99 34602903.34 4063852.81 294636881.7
2016.10 17383.18 35046229.2 4064659.21 302174946.9
2026.15 17490.08 35437525.59 4105283.823 305902898.4
2029.25 17519.26 35559717.99 4119885.063 306924470.9
2058.50 17578.23 36184786.46 4237422.25 308994169.9
2041.00 17410.57 35534973.37 4165681.00 303127947.7
2047.15 17451.02 35724855.59 4190823.123 304538099.00
2050.35 17558.85 36001788.1 4203935.123 308313213.3
2072.75 17644.76 36573176.29 4296392.563 311337555.5
2094.45 17711.35 37095537.01 4386720.803 313691918.8
2082.15 17590.17 36625372.47 4335348.623 309414080.6
40862.45 345829.26 706649563.9 83498425.3 5679792263.54

√N∑X2 – (∑X) 2 √N∑Y2 – (∑Y) 2

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CALCULATION:

= 14132991280-14131430845.287/478.2*-77472.78

= 1560434.713/-37047483.396

= -0.042

INFERENCE:

The correlation coefficient obtained is -0.042 which is negative and hence there is
no correlation between the SBI and SENSEX fluctuation index.

CHAPTER 8
FINDINGS AND RECOMMENDATIONS
8.1: Findings:

66
 At the end it is concluded that following are Major factors, which have generally
contributed to fall & rise in SENSEX & NIFTY:

• Budget 2009-10 and finance bill: The interim budget does not have any major
announcement that affects the industry. Market had lots of expectation from the
budget. Industries were expecting major support from the government in this
recessionary scenario.

However there are certain positive things as govt increased expenditure in

infrastructure,defence and other expenditure will have indirect positive impact on
the industries. Tax circular regarding transaction tax to FII.

• Foreign institutional investors (FII) they are consider more value than a HNI
withdrawals An estimated sale of $20.8 billion have been done by FII in India in
2009 alone.

• Equity supply As of March 2009, the market capitalization was around $598.3
billion (Rs 30.13 lakh crore) which is one-tenth of the combined valuation of the
Asia region. The market was slow since early 2007 and continued till the first
quarter of 2009.

• Indian industry growth and Capital spending: Many industries begin to establish
their business and spend more capital.

• Emerging market valuations: Emerging markets lead the 2009 stockmarket rally
Out 30 BSE Sensex stocks, 29 stocks closed negative. JP Associates was top loser
on the index; it was down over 8%. Reliance Infra, Reliance Communication,
ICICI Bank, Tata Steel and Reliance Industries were down between 5% and 7%.
• Government policy toward foreign firms: This lead free flow fund in India

67
 • US economy: Due to recession in US, many banks start to default. This lead more
fund came from US through FIIs (Foreign institutional investors).

• Foreign direct investment (FDI): The equity market is also affected through trade
integration policy. The country has advanced both in foreign direct investment
(FDI) and trade integration since 1995.

• Crude oil prices: Due to the increase in the price of crude oil the traders prefer to
invest in the share market. Because of this index points are highly volatiled.

8.2: Suggestion and Recommendations:

After this study, I would like to give following recommendations, which can help
to the Investors, Brokers and SEBI and the policy makers in general.

68
Investors

• I would suggest that Long term Investors should not invest into bull market,
which led investors to erode their wealth.

• It must be remembered that Long-term investors should go for frontline stocks,

which helps to keep their income regular and steady.

• I would also suggest that Investors should take into consideration various things
before investing into scripts such as:

Long term growth prospect in company

1. Financial positions of company

2. Liquidity position

3. Dividend record

4. Past performance of company

SEBI

1. SEBI should come out with new regulation in context of circuit breakers.

2. SEBI should monitor HNI transactions in domestic as well as global market.

3. SEBI should issue regularly draft containing penalty details on defaulters to keep
market less speculative.

CHAPTER 9

CONCLUSIONS

69
 India has been witness to years of up and down cycle in the stock markets. Since
1992, the Indian markets have peaked every fourth year and then dropped 35-45% during
the next three years. Some of the major conclusions derived in the study are as under.
Declaration of any financial result and other information of the company has direct effect
on its stock price. News related to any political and economical affair has also the direct
effect on stock market. Any fluctuation in foreign market has more effect on Indian stock
market than that of domestic market. In the given volatile economic conditions, the
market is efficient to any news and information.

In short, the following hypothesis have been tested and proved. There is no relationship
between the single listed company stock prices with their respective stock exchange
index. There is very less relationship between overall market turnover and nifty index.
Therefore turnover tends to decrease when Nifty increases.

BIBLIOGRAPHY

70
Books:

• Kothari, C.R., Research Methodology, Vikas Publishing House Pvt. Ltd., 1978.

• Gupta, S.P., Statistical Methods, New Delhi, Sultan Chand & Sons, 2005

Web links:

www.nseindia.com

www.bseindia.com

www.moneycontrol.com

www.coimbatorecapital.com

www.sharekhan.com

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