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Vinay.l Project Data

The document discusses the Indian stock market. It provides background on the stock market and discusses its role in financing corporate industry and encouraging entrepreneurship. It also examines factors that affect the stock market like economic liberalization, privatization, and globalization. Research studies that have analyzed the stock market and factors like foreign institutional investors are also summarized.

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65 views3 pages

Vinay.l Project Data

The document discusses the Indian stock market. It provides background on the stock market and discusses its role in financing corporate industry and encouraging entrepreneurship. It also examines factors that affect the stock market like economic liberalization, privatization, and globalization. Research studies that have analyzed the stock market and factors like foreign institutional investors are also summarized.

Uploaded by

barat93
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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A stock market or equity market is the aggregation of buyers and sellers (a loose network

of economic transactions, not a physical facility or discrete entity) of stocks (shares); these
are securities listed on a stock exchange as well as those only traded privately.

Stock market is most promising sector in an Indian economy for raising the level of Indian
financial system. After liberalization phase stock market has proven as a weapon of fighting
with the foreign economies. After its inception in 1875 stock market has been played a
challenging role for savers as well as for investors. Directions of an economy can be
measured by movement of volatility index .Stock Index has been a barometer for measuring
the performance of Indian economy with its development.
Micro and macro economic factors have continuously affected the industrial growth. Our
financial industry has been affected by financial crisis frequently that has proven the stock
market full of risk and uncertainty.
Nifty and sensex always have been in the mind of active investors which have changed the
life as miracle. Indian economy will be the third largest economy after 2035 according to a
survey.
After getting freedom from Britishers, Indian economy has survived with rebuilding their
stand
through monetary policies, fiscal policies, five year plans etc. Efficient and effective stock
market is that place where prices of the security are showing all related information about
that with its true worth. Working on Indian stock market has become interesting job for
various researchers. Already appreciable studies have been conducted in this area. This paper
is an attempt to analyze stock market conditions with all related measure to check on risk
management tools with their respective return. With the help of Secondary sources like
current research studies, Reports of BSE, NSE this study has been taken further to exploring
some new highlights
.
KEY WORDS: Stock market, NSE, BSE, Risk Management, FII, Capital Market Indian
Economy.
INDIAN STOCK MARKET:
After the process of economic liberalization, Privatization and Globalization, the Indian
capital market has been assigned very dominating place in financing and loaning industry.
The leading role of stock market is financing corporate industry, encourage entrepreneurship,
mobilizing resources, allocation of resources with respect of economic growth. Development
phase has taken place after 1991 the capital market with innovative strategies and policies. In
1875 Bombay stock exchange was established with the view to expand and regenerate
finance industry. At that time International standards were confronting with the Indian
economy. 23 stock exchanges were operating with great infrastructure. BSE, NSE, Calcutta
stock exchange were leading exchanges at that time. Sub Indexes through performance of
GALAXY International Interdisciplinary Research Journal_______________________
ISSN 2347-6915
GIIRJ, Vol.2 (2), FEBRUARY (2014)
173

stock market is evaluated are BSEIT, BSEFMCG, BSEHC, TECH, BANKEX, BSECG,
AUTO, METAL and OILGAS. After liberalization BSE has become the indicator for
economy growth its trends and its variation. Suresh Chandra das (2011) in his paper has

propounded that efficient market theory is really effective in real situation. Its weak form
hypothesis has been the issue of research for all the researchers. That is the valid reason that
past occurrence in stock market cannot be related with the current and future one. Anju Bala
(2013) has studied that listing of corporate on various stock exchanges impact the liquidity in
the market. Risk in the stock market cannot be eliminated but that can be measured with help
of volatility and variability of previous trends. Stock market is always related with the
demand and supply forces, fiscal deficit and political stability. Jatinder Loombe (2012)
explores that FII brings foreign capital and reserve in the country with the aim of getting
return. India is lacking in foreign capital and surplus which needed to be raised and FII is
doing favorable job for the same. Naresh Chandra sahu (2011) have studied that stock
market is not that much strong that it can affect the real GDP growth of the country. Because
only 2% of population in India involved with the stock market investment.
Investment Alternatives:
Bank deposits
Treasury bills
Commercial papers
Bills of Exchange
Fixed deposit
Equity Shares
Preference shares
Debentures
Bonds
Gold
FII
Saving schemes
Foreign currency
Financial derivatives
Motivation for investing in stock market:
Obtaining return
Minimizing risk
Fulfillment of future objectives
Liquidity
Solvency
Profitability
Marketability
Types of risk:
Systematic Risk:
Market Risk
Government Policies
Interest rate Risk
Currency Risk
Liquidity Risk
Marketability Risk
Solvency Risk
GALAXY International Interdisciplinary Research Journal_______________________
ISSN 2347-6915
GIIRJ, Vol.2 (2), FEBRUARY (2014)
174

Unsystematic Risk:
Financial Risk

Labor Problem
Business Risk
Management Problems
Public Relation
Competitor Strategy

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