Effect Of Recession On Indian Stock Market

EFFECT OF RECESSION ON INDIAN STOCK MARKET 

BY:

  Submitted to:

(125)  Dr. Tapan Kumar Nayak misra (133)  Sanjay Kumar Mangla Pratima Gupta (148)  Rahul Sharma (164)  Rahul Upadhyaya (165)  Sachin Kumar (179)



Nimisha Gupta Pallavi

FIRST YEAR

WHAT IS RECESSION ?  Definition: NATIONAL BUREAU OF

ECONOMIC RESEARCH. NBER'S defines recession as a "significant decline in economic activity lasting more than a few months”.

 GDP growth is negative for two

consecutive quarters or more.

 RECESSION OR DEPRESSION ?

WHAT CAUSES ECONOMIC RECESSION INFLATION  Increased production costs.  Higher energy costs.  National debt.

decline.”

“This Causes GDP to

IMPACT OF RECESSION Non of the listed companies have come with the new IPO during recession. Retail investors suffers and bears huge losses from the Indian stock market crash. Mutual industry has also suffered heavy losses.

Stock Market interest:

This chart is giving clear idea about the declining interest among investors on stock markets. Stock market interest which was peaked during January 2008 and is gradually declining along with falling Sensex.

FII have taken out the money from stock markets because there was an increase in demand of dollars in America during recession. IT sock indices have not performed well during recession because of the pressure from the U.S. financial services and U.S. economic policies. Because of the liquidity crunch economic activity decreased i.e. companies not performed well due to this stock market has also not performed well.

Stock market popularity is gradually gaining ground since 2004 and it was peaked in late 2007. Sensex rise is directly proportional to investorÕs interest and vice versa .