“FINANCIAL CRISIS IMPACT ON

INDIAN STOCK MARKET”

PRESENTED BY
T. Anjan Kumar
Kunda College of
Technology and
Management
MBA
 Financial
Crisis:
“The term financial crisis is applied broadly
to a variety of situations in which some
financial institutions or assets suddenly
lose a large part of their value”.
Types of Crisis:
1.Banking Crisis:
 A situation in which bank runs are
widespread is called a systematic banking
crisis or just a banking panic.
 when a bank suffers a sudden rush of
withdrawals by depositors, this called a
bank run.
2.Speculative Bubbles and Crashes:

 A financial asset (for example stock)

exhibits a bubble when its price exceeds
the present value of the future income
(such as interest or dividends).
Example:
“United States Housing Bubble”
3.International Financial crises:

 When a country that maintains a fixed

exchange rate is suddenly forced to
devalue its currency because of a
speculative attack, this called a currency
crisis or balance of payments crisis.
Example:
European Exchange Rate
Mechanism suffered crisis in 1992-93 and
were forced to devalue.
4.Wider Economic Crisis:

Negative GDP growth lasting two or more

quarters is called a recession.
An especially prolonged recession may be
called a depression.
While long period of slow but not
necessarily negative growth is called
economic stagnation.
 Comparative study on
FII’S and NIFTY
 Nifty: It is an Index which is used for measure the
performance of stock market.
Nifty- 6018
 FII’S: Institutional investors are organizations
which pool large sums of money and invest those sums
insecurities, real property and other investment assets.
FII’S flow on NIFTY
in the year 2007-2008
Cash Balance of countries
between 2007-2008(In %)
GDP Growth in selected Countries
in the years 2006,2007,2008
Indicator Period 2007-08 2008-09

Growth, per cent

Real GDP Growth April-December 9.0 6.9

Industrial April-February 8.8 2.8

production

Services April-December 10.5 9.7

Exports April-March 28.4 6.4
Imports April-March 40.2 17.9
GFD/GDP April-March 2.7 6.0
Stock Market April-March 16,569 12,366
(BSE Sensex)

Rs.per US$ April-March 40.24 45.92

FII’S Investment in Last 10years
 FII’S flow on NIFTY
in the year 2009-2010
Conclusion:
“From the above discussion Flow of FII”s
will effect the global stock markets”.
Reference:
www.Nseindia.com
www.bseindia.com
www.tradingeconomics.com
www.indexmundi.com
www.Businessline.co.in
www.Scribd.com
Thank you