Dipak STK MKT

FALL IN STOCK MARKET
The rise and fall of the Sensex has been dizzying. The
markets are back to the point it scaled three years
ago. . . The BSE Sensex on Friday crashed by 1,071
points to close at 8,701 points. This has been an
incredible year for the markets, after scaling the
21,000 peak in January 2008, the markets are at
8,000 now.
On Friday, the Reserve Bank of India gave the

markets its biggest blow as it left key interest rates
unchanged and lowered the GDP target to 7.5-8% for
2008-09.
Markets across the globe crashed on Friday. Japan's
Nikkei shed 9.6% (812 points) to 7,649. Hang Seng
plunged 6% (822 points) to 12,939. The Seoul
Composite index tumbled 10.5% (111 points) to 939.
The worst hit stocks were DLF, Ranbaxy
Laboratories , Hindalco Industries , Tata Motors ,
Reliance Industries and Mahindra & Mahindra.
On Thursday, stock markets plunged following
sustained capital outflows, shaky global markets,
poor company results, and the International Monetary
Fund's warning that economic growth in advanced
nations will be close to zero. The BSE Sensex fell by
398.20 points, or 3.92%, to fall to 9,771.70.
We take you through the BIGGEST falls in the Indian
stock market history.
October 24, 2008: The Sensex plunged by 1070.63
points (10.96 per cent) to close at 8,701.07. The
National Stock Exchange's Nifty ended at 2,557.25,
down 13.11 per cent or 386 points. The BSE Midcap
closed 8.38 per cent lower and BSE Smallcap Index
ended 7.66 per cent down.
March 17, 2008: The Bombay Stock Exchange
benchmark Sensex crashed by 951 points to close at
14,809 on weak cues from the overseas markets.
Unabated selling saw the index slip below the 15,000-
mark.
March 3, 2008: The Bombay Stock Exchange

benchmark Sensex witnessed its second-largest fall
ever losing 900.84 points to close at 16,677.88 on
frantic selling by funds, triggered by deepening
concern over United States recession and some
Budget-related concerns.
January 21, 2008: The Sensex saw its highest ever
loss of 1,408 points at the end of the session on
Monday. The Sensex recovered to close at 17,605.40
after it tumbled to the
day's low of 16,963.96, on high volatility as investors
panicked following weak global cues amid fears of the
US recession.
January 22, 2008: The Sensex saw its biggest intra-
day fall on Tuesday when it hit a low of 15,332, down
2,273 points. However, it recovered losses and closed
at a loss of 875 points at 16,730. The Nifty closed at
4,899 at a loss of 310 points. Trading was suspended
for one hour at the Bombay Stock Exchange after the
benchmark Sensex crashed to a low of 15,576.30
within minutes of opening, crossing the circuit limit of
10 per cent.
February 11, 2008: The Sensex finally ended with a
loss of 834 points (4.8% ) at 16,631. The NSE Nifty
slipped over 5% (263 points) to 4,857.
May 18, 2006: The Sensex registered a fall of 826
points (6.76 per cent) to close at 11,391, following
heavy selling by FIIs, retail investors and a weakness
in global markets. The Nifty crashed by 496.50 points
(8.70%) points to close at 5,208.80 points.
December 17, 2007: A heavy bout of selling in the late

noon deals saw the index plunge to a low of 19,177 -
down 856 points from the day's open. The Sensex
finally ended with a huge loss of 769 points (3.8%) at
19,261. The NSE Nifty ended at 5,777, down 271
points.
10 October 2008: The markets crashed by 801 points

to close at a low of 10,528. The crisis in the global
markets, a fall in the rupee and poor IIP numbers led
to the fall.
October 18, 2007: Profit-taking in noon trades saw
the index pare gains and slip into negative zone. The
intensity of selling increased towards the closing bell,
and the index tumbled all the way to a low of 17,771 -
down 1,428 points from the day's high. The Sensex
finally ended with a hefty loss of 717 points (3.8%) at
17,998. The Nifty lost 208 points to close at 5,351.
January 18, 2008: Unabated selling in the last one
hour of trade saw the index tumble to a low of 18,930
- down 786 points from the day's high. The Sensex
finally ended with a hefty loss of 687 points (3.5%) at
19,014. The index thus shed 8.7% (1,813 points)
during the week. The NSE Nifty plunged 3.5% (208
points) to 5,705.
November 21, 2007: Mirroring weakness in other
Asian markets, the Sensex saw relentless selling. The
index tumbled to a low of 18,515 - down 766 points
from the previous close. The Sensex finally ended
with a loss of 678 points at 18,603. The Nifty lost 220
points to close at 5,561.
August 16, 2007: The Sensex, after languishing over

500 points lower for most of the trading session,
slipped again towards the close to a low of 14,345.
The index finally ended with a hefty loss of 643 points
at 14,358.
April 2, 2007: The Sensex opened with a huge
negative gap of 260 points at 12,812 following the
Reserve Bank of India decision to hike the cash
reserve ratio and repo rate. Unabated selling, mainly
in auto and banking stocks saw the index drift to
lower levels as the day progressed. The index
tumbled to a low of 12,426 before finally settling with
a hefty loss of 617 points (4.7%) at 12,455.
August 1, 2007: The Sensex opened with a negative

gap of 207 points at 15,344 amid weak trends in the
global market and slipped deeper into the red.
Unabated selling across-the-board saw the index
tumble to a low of 14,911. The Sensex finally ended
with a hefty loss of 615 points at 14,936. The NSE
Nifty ended at 4,346, down 183 points. This is the
third biggest loss in absolute terms for the index.
POLITICAL VIEW
BJP government coming to power with a clear
majority in New Delhi gave the feeling that political
uncertainty is over. The sector which rushed to
celebrate the political stability factor was stock
market. Stock prices moved to historic levels and the
Bombay stock exchange Sensitive Index which is the
most accepted share price index crossed the 5000
mark for the first time in its history. Investor
perception has changed now and the prices have
started moving down faster than the way it moved
up. In the last fifteen trading days the Bombay stock
exchange Sensitive Index has lost 760 points sending
shock waves among investors and the government
agencies. The index which was at 5032 on October 11,
is at 4272 when the market closed on November 1,
Monday.
Good news were in plenty, but investors were uneasy
and prices came down during the past two weeks.
Confederation Of Indian Industry report on business
sentiments said 55 percent of the business houses
were optimistic about the performance of the
economy in the second half of the year. The figure
was 39 percent six months back. The percentage of
pessimists came down from 23 to 6 percent. Surveys
by a reputed financial news papers came out with
improvements in over all profitability of companies
across the board. There were clear indication that the
transporters agitation against increase in diesel
prices is going to end and government came out with
suggestions to make the inflow of foreign capital
easy.
Other positive items which were ignored by the
market were President K R Narayanan talking about 7
to 8 percent growth of the economy and RBI cutting
CRR by one percent to 9 percent releasing Rs 7000
crore into the economy. Then we had the US
government lifting sanctions on India which had no
effect on the stock market. It is interesting to
remember that there was a time when we blamed
every fall in stock market to the US economic
sanctions on India.
However these did little to cheer up the market and
what had maximum influence on the prices was a
rumor that SEBI has asked brokers to unwind long
positions. Then there were rumors about foreign
institutions turning heavy sellers and the software
companies getting into a rough patch.
Foreign Institutional Investors were projected as the
main culprit for the fall in prices. All publications
were very vocal about the unloading by FII's and
came out with their own interpretations. The most
common is that for an FII, annual closing is December
and they have to book profits to show attractive
performance during the year. Extension of the logic is
that they do not want to wait for November or
December since the sun is bright today.
The next group to get bashed up is the infotech
companies. Standard logic is that Y2K problem is
going to cut down the turnover of software
companies by 25 percent in the third and last quarter
of the current year.
The copyright of the article Celebrations over: Prices
fall in Indian Stock market. in is owned by Sebastian
Dominic. Permission to republish Celebrations over :
Prices fall in Indian Stock market. in print or online
must be granted by the author in writing.
RUPEE FALLS BY 20 PAISA AGAINST U.S.

DOLLAR
The Indian rupee shed 20 paise from a seven-week
high to Rs. 45.18 per U.S. dollar in early trade at the
Interbank Foreign Exchange on Tuesday, weighed
down by dollar gains against other currencies.
The Indian rupee rose by 21 paise to a seven-week
high of 44.9850/9950 against the U.S. currency on
Monday, amid a rally in the domestic equity market
accompanied by increased foreign capital inflows.
Forex dealers said dollar gains against other Asian
currencies and a lower opening in the stock market
mainly put pressure on the rupee. The Bombay Stock
Exchange benchmark Sensex fell by 155.01 points, or
0.84 per cent, to 18,283.30 in opening trade on
Tuesday.
CONCLUSION
The key benchmark indices edged lower in choppy
trade as macroeconomic worries arising from surging
crude oil prices and geopolitical tensions due to crisis
in Libya weighed on the sentiment. Global stocks fell
as investors were worried about the risk of the unrest
in Libya spreading to bigger economies such as Saudi
Arabia and China. Eleven out of 13 sectoral indices on
BSE were in negative zone. The market breadth was
weak. Capital goods, auto, banking and metal stocks
witnessed selling pressure. The Nifty fell below the
5,500 level, having moved above and below that level
alternatively in intraday trade.
The BSE 30-share Sensex fell 142.15 points or 0.77%,
up close to 109 points from the day's low and off
close to 162 points from the day's high. Index
heavyweight Reliance Industries (RIL) pared intraday
strong gains triggered by a deal with BP announced
after market hours on Monday, 21 February 2011.
The BSE Sensex is down 2,212.93 points or 10.78% in
calendar year 2011 thus far, with foreign funds
pressing sales. FII outflow in February 2011 totaled
Rs 1846.90 crore (till 18 February 2011). FIIs had sold
equities worth Rs 4813.20 crore in January 2011. FII
outflow in the calendar year 2011 totaled Rs 6660
crore (till 18 February 2011).
Stocks were volatile. The market dropped amid a bout
of initial volatility. The market cut losses in morning
trade after hitting a fresh intraday low. The market
slipped into the red once again after recovering
sharply to trade in green for the brief period in mid-
morning trade. The market once again slipped into
the red after recouping intraday losses in early
afternoon trade. The market once again came off lows
later. A sudden slide was witnessed in early
afternoon trade. Stocks remained weak in mid-
afternoon trade. The market cut losses after hitting
fresh intraday low in late trade.
Stocks may remain volatile in the near term ahead of
the expiry of the near-month February 2011
derivatives contracts on Thursday, 24 February 2011.
A large number of stock deals cut by foreign
institutional investors (FIIs) have reportedly come
under the glare of tax authorities for alleged non-
payment of securities transactions tax (STT). Over
1,500 verification notices have been served to NSE,
India's largest stock exchange, institutional
brokerages, which act as intermediaries in secondary
market trades, and all leading foreign portfolio funds,
most of which are offshore entities. They have been
asked to provide details of transactions for the past
few years and the STT paid on the deals.
STT is paid for trades where stocks are delivered to
the buyer as well as for intra-day transactions where
the buyer and seller square up positions before the
closing hour. The tax under-recovery relates to deals
where participatory notes (or PNs) were issued by
FIIs. PNs are notes that allow offshore investors to
trade in Indian stocks. The Income-Tax (I-T)
department has questioned the PN deals that appear
like day trades report said.
NAME-DIPAK
PANDEY
ROOM NO-34
ROLL NO-701
PROJECT-FALL IN
INDIAN STOCK
MARKET

Dipak STK MKT

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FALL IN STOCK MARKET

On Friday, the Reserve Bank of India gave the

March 3, 2008: The Bombay Stock Exchange

December 17, 2007: A heavy bout of selling in the late

10 October 2008: The markets crashed by 801 points

August 16, 2007: The Sensex, after languishing over

August 1, 2007: The Sensex opened with a negative

RUPEE FALLS BY 20 PAISA AGAINST U.S.

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