RAVI GARG0601233908MBA-3rd-A

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Company Profile

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Before, understanding “Recession”, we need to understand the Market Economy

A] TWO STAGES OF MARKET ECONOMY

a)Growing Market

Economy b)Declining Market

Economy

B] TWO FACTORS OF MARKET

a)Demand & b)Supply

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A] Growing Market Economy

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B] Declining Market Economy

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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 andproducer is ready to sell

Usually, we think; Demand = QuantityBut, here Demand = Price; This is because,

Price decides the Quantity of Sales;Competitive Price = More Demand;In competitive Price = Less Demand;

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WHAT IS RECESSION???Recession is a contraction phase of the

Business Cycle.It is decline in GDP growth for 2 or more

consecutives quarter of a year. GDP = Value of all the reported goods and

services produced by the people operating in the countryGDP = MONEY VALUE OF {C + I + G + (X – M)}

C = Consumables, I = Gross Investments, G = Government Spending, X = Exports, M =

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Government has 2 plans

Fiscal Policies(By Govt.)

Monetary Policies(By RBI)

Since, Govt does not have direct control on Producers’ & theConsumers’ behavior; But, they can influence millions of Producers & Consumers with Govt’s policies;

Government influences the economy by changing howit (Govt) spends and collects money

RBI manipulates the available supply of money in the country

How to come out of recession?

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Business cycle

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SENSEX V/S FII

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US $ V/S Rupee

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ObjectiveThrough this we would focus on the following

area

Find out the factor which impact the market most,

To find whether they are short term or long term investor.

To know the mindset of investors towards Indian banking system.

To analysis the impact of recession on Indian investor & stock market.

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Research DesignSecondary Research Collection of data from various websites to

understand the relationship between Sensex, US Dollar and FII’S.

Primary Research:A Primary Research has been conducted.The questionnaire was prepared for the investors to

find out…Investor’s profileWhat impact the Indian stock market.Their view on Indian banks.Their Positive-ness for Indian stock market.

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Sampling PlanElements:

The target population of the study included the general population above the age of 25 yrs

Sampling design and sampling unit are as follows:

Sampling frame- Urban class in the Delhi(NCR) region

Sample size: 100

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You hold the stocks for how much time period?

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What significantly impact the Indian stock market?

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To whom you blame for losses you have incurred?

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Will you stay invested in the stock market?

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Which one is your preferred stock in which do you want to invest?

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Which bank do you prefer for deposit?

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Where do you invest?

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Where do you see BSE sensex one year from now?

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When BSE Sensex will reach its all time high of 21000+ ?

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ConclusionsRecession has a huge impact on Indian stock

market.According to investors FII’S are the main factor

in fluctuation in indices of Indian stock market.Respondents basically invest their money for a

short period of time.They don’t have much knowledge of derivative

market.They are not fearful regarding their deposits in

any Indian bank.Indian investor have positive mindset regarding

Indian stock market.

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RecommendationSEBI must do something regarding FII’S.SEBI must take some steps to educate Indian

investors so that they will invest after doing proper fundamental & technical analysis of stocks.

Investors must invest for long period and invest in various sector(portfolio diversification) to minimize their risk.

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