Stock markets in India

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Stock markets in India

• Emerging Asia This links with WJEC A2 Geography
  Theme India.
• 1.2 How and why is the economy changing ? Factors
  affecting the growth of financial industries

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India The big picture
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Random Commercial facts

• Are these points significant to a consideration
  of Indian commerce and trade? If so, why?
• Nokia have 78 of the mobile handset market in
  India
• 20 million Indians live in countries other than
  India
• 17,000 Indian citizens attend British
  universities each year
• Currently there are 9 million university students
  in India
• A considerable proportion of Indias budget for
  scientific research is spent on defence and
  military applications
• India is in the top 14 markets for pharmaceutical
  products such as medical drugs and its market
  position is rising.

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India Stock markets

• India's stock markets have been on the rise since
  May 2004.
• The benchmark Bombay Stock Exchange (BSE) index,
  the Sensex, has shot up by over 100 to cross
  9,000 points for the first time in its history.
• Buyers, like the aggressive foreign institutional
  investors who have pumped in more than 10bn this
  calendar year, are excited about India's growing
  economic strength.

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India Stock markets

• Others are convinced that the economy is
  fundamentally strong
• They believe that the country's financial markets
  are more mature than those of other emerging
  economies.

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India Stock markets

• Many believe that the Sensex is proof of India's
  economic strength.
• Most global reports have indicated that the
  Indian economy will be larger than the developed
  ones, except China, in the next few decades.

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India Stock markets 4

• But this logic falls flat when one realises that,
  unlike the Dow or Footsie, less than 5 of Indian
  companies are listed on Indian stock exchanges.
• A better indication of the health of India's
  economy would be the collective movement of the
  2,500 shares that are regularly traded, rather
  than the Sensex.

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What have you learned?

• Summarise the key issues in your own words