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CURRENT SCENARIO OF EQUITY MARKET IN INDIA SIZE/STATISTICS MAJOR PLAYERS FACTORS DRIVING EQUITY MARKET IMPACT OF FII/FDI.

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Presentation on theme: "CURRENT SCENARIO OF EQUITY MARKET IN INDIA SIZE/STATISTICS MAJOR PLAYERS FACTORS DRIVING EQUITY MARKET IMPACT OF FII/FDI."— Presentation transcript:

1 CURRENT SCENARIO OF EQUITY MARKET IN INDIA SIZE/STATISTICS MAJOR PLAYERS FACTORS DRIVING EQUITY MARKET IMPACT OF FII/FDI

2 CURRENT SCENE BSE SENSEX RANGE BOUND AT 16500-17000 LEVELS NSE NIFTY AROUND 5100-4900 LEVELS NSE + BSE trading summary of FII/DII FII PURCHASES FY 0900- Rs.391794 cr FII sales FY 0900-Rs.361675 cr FII Net Investment FY 0900 Rs.30118 cr DII purchases FY 0900 Rs.192516 cr DII sales FY 0900 Rs.181613 cr DII net investment FY 0900 Rs.10903 cr

3 RBI POLICY CURRENT RBI Policy: Repo rate (Bank borrowing from RBI) is at 4.75%, Reverse repo (Bank placing funds with RBI) at 3.25%, CRR at 5%. 2. RBI placed the growth projection for GDP for 2009-10 at 6.0 per cent with an upward bias. Expected that Fiscal and monetary stimulus measures will supplement domestic demand in 2009-10. On balance, an uptrend in the growth momentum is unlikely before the middle of 2009-10, the Bank said. 3. The Bank projects the WPI inflation for end-March 2010 at around 5.0 per cent higher than the projection of 4.0 per cent made in the Annual Policy Statement of April 2009.

4 RBI POLICY 4. Monetary Policy Stance: On the basis of the above overall assessment, the stance of monetary policy of the RBI for the remaining period of 2009-10 will be to : Manage liquidity actively so that the credit demand of the Government is met while ensuring the flow of credit to the private sector at viable rates. Keep a vigil on the trends and signals of inflation, and be prepared to respond quickly and effectively through policy adjustments. Maintain a monetary and interest rate regime consistent with price stability and financial stability supportive of returning the economy to the high growth path.

5 FAVOURABALE FACTORS INDICES MOVING UP SHARPLY IN INDIAN MARKET DURING LAST 6 MONTHS-VALUATION OF INDIAN MARKETS INTRA DAY VOLATILITY GROWTH STIMULAI OF VARIOUS COUNTRIES WORLD ECONOMY REVIVING-INDUSTRIAL PRODUCTION UP INTENT TO KEEP STIMULAI ON INDIAN GDP EXPECTED AROUND 6% DOMESTIC CONSUMPTION OF INDIAN ECONOMY

6 CURRENT ECONOMIC SENARIO INDUSTRIAL PRODUCTION UP BY 6% IN JULY 2009 IN INDIA (MFG AND MINING) AUTO SECTOR,CEMENT,TELECOM LOOKING UP THRUST ON INFRASTRUCTURE NREPG HAVING SOME EFFECT IN RURAL AREAS ADVANCE TAX FIGURES LOOK ENCOURAGING MFS INVESTED TO THE EXTENT OF 90% OF THEIR FUNDS REAL ESTATE LOKING UP IN AFFORDABALE SEGMENT

7 CURRENT ECONOMIC SENARIO AUTO SECTOR LOOKING UP IT INDUSTRY LOOKING UP MARGINALLY NO UNFAVOURABLE IMPACT ON IT FROM ADVANCED COUNTRIES UID MAY GIVE A FILLIP TO IT INDUSTRY REAL ESTATE COMPANIES LOOKING OUT FOR IPO WATCH FOR QUARTERLY RESULTS AND DEMAND REVIVAL TIGHTENING MONETARY POLICIES TO BE AWAITED

8 NEW DEVELOPMENTS BY SEBI Grading of IPOs made mandatory Relaxation in case of QIP Anchor Investors Relaxation for Government Companies in Infrastructure Sector SEBI introduced (i) mini contracts in equity indices, (ii) options contracts with longer life/tenure

9 NEW DEVELOPMENTS BY SEBI Trading hours to be increased

10 Capitalisation/GDP Ratio

11 TRENDS IN THE SECONDARY MARKET Apr 2009-jun 2009

12 NSE Turnover Jun08-Jul09

13 Major Indicators of stock market- comparision-2006 to June 2009

14 Trends in Derivatives Market at NSE

15 SENSEX,NIFY,NASDAQ-FY0708

16 TRENDS IN PRIMARY MARKET

17

18 QIP

19 RESOURCE MOBILISATION BY MF

20 GAIN IN BSE/NSE INDICES IN JUNE 2009

21 INSTITUTIONAL INVESTMENT

22 NET INVESTMENT BY FIIS

23 FII Investments Trend

24 FII Investments-debt and equity

25

26

27 Size of the market-NSE NSE turnover figures shows a substantial rise from Rs. 1,805 crore (US $ 574.29 million) in the year 1994-95 to Rs. 2,752,023 crore (US $ 540,141.59 million) in 2008-09. The average daily trading volume increased from Rs. 17 crore during 1994-95 to Rs. 11,325 crore (US $ 2,223 million) during 2008-09. During 2008-09 the volumes decreased by 22.50 % to Rs. 2,752,023 crore (US $ 540,142 million) from Rs. 3,551,038 crore (US $ 888,426 million) during 2007-08.

28 NSE Trading Size Graph

29 NSE-Cash Market The total market capitalisation under CM segment increased from Rs. 363,350 crore (US $ 115,606 million) as at end March 1995 to Rs. 2,896,194 crore (US $ 568,439 million) as at end March 2009. Decrease in Market capitalization of 40.38 % during 2008-09 as compared to the market capitalization of Rs.4,858,122 crore (US $ 1,215,442 million) in 2007-08.

30 NSE INDICES FY 2008-09

31 Derivative/CM turnover

32 The total turnover in the derivative segments surpassed the combined turnover in the cash segment of both BSE and NSE since early 2004. During 2007-08, the turnover of derivatives market was higher by 259.9 per cent of the combined cash market turnover of BSE and NSE

33 MF/FII Investment trend

34 FY 07-08

35 Secondary Market turnover

36 Stock Exchange Turnover

37 NIFTY 07-08


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