CURRENT SCENARIO OF EQUITY MARKET IN INDIA

CURRENT SCENARIO OF EQUITY MARKET IN INDIA

• SIZE/STATISTICS• MAJOR PLAYERS• FACTORS DRIVING EQUITY MARKET• IMPACT OF FII/FDI

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

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.

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.

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

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

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

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

NEW DEVELOPMENTS BY SEBI

• Trading hours to be increased

Capitalisation/GDP Ratio

TRENDS IN THE SECONDARY MARKETApr 2009-jun 2009

NSE Turnover Jun08-Jul09

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

Trends in Derivatives Market at NSE

SENSEX,NIFY,NASDAQ-FY0708

TRENDS IN PRIMARY MARKET

TRENDS IN PRIMARY MARKET

QIP

RESOURCE MOBILISATION BY MF

GAIN IN BSE/NSE INDICES IN JUNE 2009

INSTITUTIONAL INVESTMENT

NET INVESTMENT BY FIIS

FII Investments Trend

FII Investments-debt and equity

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.

NSE Trading Size Graph

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.

NSE INDICES FY 2008-09

Derivative/CM turnover

Derivative/CM turnover

• 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

MF/FII Investment trend

FY 07-08

Secondary Market turnover

Stock Exchange Turnover

NIFTY 07-08