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    TITLE OF THE PROJECT:

    THE BEHAVIOUR OF INDIAN STOCK

    MARKET

    REPORT SUBMITTED IN PARTIAL FULFILLMENT OF REQUIREMENTFOR

    POST GRADUATE PROGRAMME IN MANAGEMENT

    BY-

    AMAL SAIKIAREGISTRATION NUMBER: EIILM/PGP/08-09/4H007

    SESSION: 2008-2010August, 2009

    UNDER THE GUIDANCE OF

    Mr. Subhendu MookherjeeRegional Head, West Bengal

    &

    Prof. Abhijit ChakrabartyFaculty, EIILM, Kolkata

    EASTERN INSTITUTE FOR INTEGRATED LEARNING IN MANAGEMENT

    6, WATERLOO STREET, KOLKATA 700069

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    THE BEHAVIOUR OF INDIAN STOCK MARKET

    Acknowledgement

    For me, acknowledgement is a genuine opportunity to express my sincere thanks

    to all those who have supported and encouraged me in the completion of the

    project.

    First of all, my sincere gratitude is extended to Mr. Subhendu Mookherjee

    (Regional Head, KARVY Stock Broking Ltd., West Bengal), my external

    guide, for his guidance and immense support for the completion of the project.

    I further express my sincere thanks and indebtness to Ms. Mohua Chatterjee,

    Branch Head, Dalhousie Branch and Mr. Amit Sonthalia, Branch Head,

    Phoolbagan Branch, Kolkata (KARVY) who in spite of having a very busy

    schedule helped me immensely.

    I express my deep sense of regards to Prof. Abhijit Chakrabarty, (Faculty,

    EIILM, Kolkata) my guide in the institute for his valuable guidance and whole

    hearted support, which were of immense help for completing my project.

    2

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    THE BEHAVIOUR OF INDIAN STOCK MARKET

    Declaration

    The project report on The Behaviour of Indian Stock Market at KARVY

    Stock Broking Ltd. is submitted by me in partial fulfillment of the requirement

    for MBA from EIILM, is an original work of mine.

    I declare that this project has not been published previously elsewhere; it is a

    result of my own efforts and has been taken solely for the academic purposes. All

    educational materials consulted in the course of study have been declared in the

    Reference and all information provided in the project is true to the best of my

    knowledge.

    I have done this work independently under the guidance of Prof. Abhijit

    Chakrabarty my guide in the institute. This work has not been submitted in full

    or part to any institute or university for the award of any degree /diploma.

    ________________

    Amal Saikia

    3

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    THE BEHAVIOUR OF INDIAN STOCK MARKET

    TABLE OF CONTENTS

    TITLE OF THE PROJECT: ......................................................................................... 1

    THE BEHAVIOUR OF INDIAN STOCK MARKET.........................................................1

    Acknowledgement....................................................................................................2Declaration...............................................................................................................3

    1.Company Profile:...................................................................................................6

    ............................................................................................................................. 7

    KARVY STOCK BROKING PRIVATE LIMITED ............................................................ 7

    2.Introduction:........................................................................................................11

    3.Objective:............................................................................................................12

    4.Methodology:.......................................................................................................13

    4.1Data Collection: .............................................................................................. 13

    5.Data Projection and Analysis:..............................................................................14

    5.1STOCK MARKET: ............................................................................................. 14

    Function and purpose .......................................................................................... 14

    Stock market investment: ................................................................................... 15

    Main Participants of the Stock market ................................................................. 15

    5.2 Functioning of the Stock Market .................................................................... 15

    Contribution of Stock Market ............................................................................... 16

    5.3 Stock Market and Economic Growth: ............................................................. 16

    5.4 Stock Market in India: ................................................................................... 17

    POST-REFORMS STOCK MARKET SCENARIO: ....................................................... 17

    How Stock Exchanges Operate: .......................................................................... 19

    Pattern of Growth of Stock Exchange: ................................................................. 19

    5.5Bombay Stock Exchange (BSE): ..................................................................... 21

    5.6SENSEX - The Barometer of Indian Capital Markets ....................................... 22

    Companies Listed in the Sensex: ........................................................................ 22

    4

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    THE BEHAVIOUR OF INDIAN STOCK MARKET

    Sensex milestones: ............................................................................................. 24

    Graphical Presentation: ...................................................................................... 26

    ............................................................................................................................ 26

    May 2009 ............................................................................................................ 26

    Sensex falls: ........................................................................................................ 26

    The top 18 single-day falls of the Sensex have occurred on the following dates:

    ............................................................................................................................ 26

    Major crashes since 2000:......................................................................................27

    May 2006 ......................................................................................................... 27

    Effects of the subprime crisis in the U.S. : ........................................................ 27

    January 2008 .................................................................................................... 27

    Gigantic drops of the SENSEX in a day ................................................................ 28

    5.7Major Indian Stock Market Reforms: ............................................................... 28

    Securities and Exchange Board of India (SEBI): .....................................................28

    Over-the-Counter Exchange of India (OTCEI): .......................................................28

    5.8National Stock Exchange (NSE): ..................................................................... 29

    Index-based Market-wide Circuit Breakers: ......................................................... 33

    5.9FOREIGN INSTITUTIONAL INVESTMENTS AND THE INDIAN STOCK MARKET: . .33

    FIIs Flows: ........................................................................................................... 33

    6.Market Trend:......................................................................................................35

    Where Did the Terms Come from? ...................................................................... 36

    Characteristics of a Bull and Bear Market: .......................................................... 36

    6.1 BULL MARKET: .............................................................................................. 37

    Features of Bull market: ...................................................................................... 38

    Existence Period of Bull market: .......................................................................... 39

    Factor responsible for Bull Market: ...................................................................... 39

    Bull Market Strategy: ........................................................................................... 40

    6.2 BEAR MARKET: .............................................................................................. 41

    Factors Responsible For Bear Market: ................................................................. 42

    7.Volatility:.............................................................................................................44

    RETURNS IN BULL PHASE AND BEAR PHASE: ...................................................... 47

    Analysis: ............................................................................................................. 48

    8.Findings:..............................................................................................................49

    Factors responsible for Volatility: ........................................................................ 49

    5

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    THE BEHAVIOUR OF