C T O N S TO C K

IMPA
M A R KE T

PREPARED BY:
 TAPAN ACHE
 VAZIM MAHAMOOD.P
 RAKESH.K P
 URVISH NAGPAL
 SHIJIN.P V
 RIJAPUL ISLAM
 VISHWAM PRITHVI
ABOUT STOCK MARKET

Stock market is also called equity market.

A stock market is a public entity for the trading of

company  stock and derivatives at an agreed price.

A stock market is a platform to buy and sell stocks.

The stock quotes are decided by demand and supply.

Cond….
It represents the secondary market where existing
securities are traded.

Stock exchange provides an organised mechanism for

purchase and sale of existing securities.
INTEREST RATE
 Interest is nothing more than the cost someone
pays for the use of someone else's money.

 The interest rate that applies to investors is the

U.S. Federal Reserve's federal funds rate. This is
the cost that banks are charged for borrowing
money from Federal Reserve banks.

 Basically, by increasing the federal funds rate,

the Fed attempts to lower the supply of money
by making it more expensive to obtain.
EFFECTS OF AN INCREASE
 When the Fed increases the federal funds rate, it
does not have an immediate impact on the stock
market.
Businesses are also indirectly affected by an
increase in the federal funds rate as a result of the
actions of individual consumers.
Businesses are affected in a more direct way as
well.
STOCK PRICE EFFECTS
Changes in the federal funds rate affect the behavior of
consumers and business, but the stock market is also
affected.
INVESTMENT EFFECTS
 For many investors, a declining market or stock price
is not a desirable outcome.

 Investors wish to see their invested money increase in

value.

 investing in stocks can be viewed as too risky

compared to other investments.
 SATYAM SCANDAL
Satyam’s shares plunged 77.69% in a single trading session
on 7 January 2009, as chairman Ramalinga Raju resigned
after announcing during trading hours that the company’s
accounts were inflated.

Satyam stock is being removed from its S&P CNX Nifty 50-
share index from Jan 12

Satyam will also be excluded from the CNX 100 index, CNX
500 index and the CNX IT index
Contd…
Satyam has lost more than 10000 Crore rupee in a
single day trading. $8 Crore changed hands at BSE
and 33 Crore changed hands at NSE.

Satyam’s American Depository Receipts, listed on

the New York Stock Exchange, witness a sharp
plunge when the American markets open trading
in said stock has been suspended to.
Contd….
Fund Houses sold shares in the open market
- Swiss Finance Corp Mauritius Ltd: Sold
7786759 shares at Rs.74.61
- Aberdeen International India Opportunities Mauritius
Ltd: Sold 9830811 shares of the company at Rs.43.41
- Aberdeen Asset Managers Ltd Aberdeen Global Asia
Pacific fund: Sold 4179064 shares at Rs.43.41

15 Indian stocks on US bourses bore the brunt of the

negative market sentiment and witnessed a fall of $1.94
billion in their combined market capitalization.
Contd….
Bombay's main benchmark index tumbled 7.3
percent and the Indian rupee fell sharply.

Realty and infrastructure shares tumbled on market

perception that a number of firms in these sectors do
not strictly follow good corporate governance practices.

Satyam’s largest shareholder, Aberdeen AMC, dumped

the tainted software entity’s shares.
Contd…
SEBI announced the certification of corporate results
from the December 2008 quarter by auditors would be
subject to peer review to assure investors that the
fraud at Satyam was unique.
India’s biggest engineering and construction firm by
revenue L&T slumped 12.7%to Rs 717.60 on fears
that it is likely to register huge losses on its exposure
to Satyam Computer taken just before the accounting
fraud.