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Factor Affecting Stock Market Volatility

A
GRAND PROJECT
ON

FACTOR AFFECTING STOCK MARKET VOLATILITY

Submitted to
GIDC Rajju Shroff Rofel Institute Of Management Studies

In requirement of partial fulfillment of


Masters of Business Administration (MBA)
2 year full time Program of Gujarat Technological University

Submitted on:

Submitted by:
PRITESH A. MAPARA
DHANRAJ B. GEDIYA

Batch No.: 2009 - 11

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PREFACE

A project report on stock market is being prepared in attempts to interpret in-depth study of
volatility in Indian stock market. This report helps us to understand various terminologies in
stock market. This report gave me opportunity to have complete idea about volatility in stock
market. This gave me idea about technical and fundamental analysis in stock market and how
trading is being done in stock market. This project report helps in following aspects,

Build understanding of central ideas and theories of stock market.

Develop familiarity with the analysis of stock market.

Furnish institutional material relevant for understanding the environment in which


trading decisions are taken.

This project will guide to investors for an investment in stock market. This project Deployed a
lot time for collections of information from various sources. This project will be very helpful to
know volatility from January 2006 to December 2006 and reasons for such high volatility and
would be able to take decisions for investment in volatile stock market.

DECLARATION

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Factor Affecting Stock Market Volatility

I hereby declare that the dissertation Factor Affecting Stock Market Volatility submitted for
the MBA Degree at Gujarat Technological Universitys GIDC Rajju Shrof Rofel Institute Of
Management Studies, is my original work and the dissertation has not formed the basis for the
award of any degree, associate ship, fellowship or any other similar titles.

Place: Vapi

Signature of Students

Date:

CERTIFICATE

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Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

This is to certify that the dissertation entitled Factor Affecting Stock Market Volatility is the
research work carried out by Mr. Pritesh A. Mapara and Mr. Dhanraj B. Gediya student of MBA,
at GIDC Rajju Shrof Rofel Institute Of Management Studies during the year 2009 -2011, in
partial fulfillment of the requirements for the of the Degree of MBA and that the dissertation has
not formed the basis for the award previously of any degree, diploma, associate ship, fellowship
or any other similar title.

Date:
Place:

Signature of the Director Sir

It is certified that the work mentioned above is carried out under my guidance.

Date:
Place:

Signature of the faculty guide

ACKNOWLEDGEMENT

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Factor Affecting Stock Market Volatility

Practical knowledge is required in every field. Only theoretical knowledge is not important the
practical knowledge is essential. In this type of project work important to management student.
In the training period there is vital opportunity to study the practical approach.

In the first place, we thank Professor Dinesh Kapadia for having given us their valuable guidance
for the project. Without their help it would have been impossible for us to complete the project.

Place: Vapi

Signature of the student.

Date:

EXCUTIVE SUMMARY
Stock market is an avenue for growth of earnings. This project includes how broking is being
done in stock market. It involves stock market analysis such as fluctuations in Sensex reasons for
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fluctuations in stock market, fluctuations in stock market and reasons for the same. Stock market
has been the best avenue for investment in securities since last 10 years. Mostly future and
option trading was the worst trading in stock market in these sessions. I have covered various
sessions for analysis from April 2006 to March 2011. In these sessions, stock market was most
volatile so that I have covered various analyses with most affected factors to the global market. I
have made analysis of Sensex which made of 30 Shares. In this project, I have included most
gainer period and most loser period with reasons for the same. I also included comparison
between Bond yields and foreign investments by foreign investors.

Chapter 1
Introduction to project
Stock exchanges to some extent play an important role as indicators, reflecting the
performance of the country's economic state of health. Stock market is a place where securities
are bought and sold. It is exposed to a high degree of volatility; prices fluctuate within minutes
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and are determined by the demand and supply of stocks at a given time. Stockbrokers are the
ones who buy and sell securities on behalf of individuals and institutions for some commission.
The Securities and Exchange Board of India (SEBI) is the authorized body, which regulates the
operations of stock exchanges, banks and other financial institutions.
The past performances in the capital markets especially the securities scam by Harshad
Mehta has led to tightening of the operations by SEBI. In addition the international trading and
investment exposure has made it imperative to better operational efficiency. With the view to
improve, discipline and bring greater transparency in this sector, constant efforts are being made
and to a certain extent improvements have been made. As the condition of capital markets are
constantly improving, it has started drawing attention of lot more people than before. On the
career related aspects, professionals have opportunities to choose from for a wide range of jobs
available in a number of organizations in this sector and one can expect to have good times
ahead of him.

1.1 INDIAN CAPITAL MARKET OVERVIEW


1.1.1 Evolution
Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200 years ago.
The earliest records of security dealings in India are meager and obscure. The East India
Company was the dominant institution in those days and business in its loan securities used to be
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transacted towards the close of the eighteenth century. Thus, at present, there are totally twentyone recognized stock exchanges in India excluding the Over The Counter Exchange of India
Limited (OTCEI) and the National Stock Exchange of India Limited (NSEIL).

1.1.2 Trading Pattern of the Indian Stock Market


Trading in Indian stock exchanges is limited to listed securities of public limited companies.
They are broadly divided into two categories, namely, specified securities (forward list) and nonspecified securities (cash list). Equity shares of dividend paying, growth-oriented companies
with a paid-up capital of at least `50 million and a market capitalization of at least `100 million
and having more than 20,000 shareholders are, normally, put in the specified group and the
balance in non-specified group. Two types of transactions can be carried out on the Indian stock
exchanges:
(a) Spot delivery transactions "for delivery and payment within the time or on the date stipulated
when entering into the contract which shall not be more than 14 days following the date of the
contract
(b) Forward transactions "delivery and payment can be extended by further period of 14 days
each so that the overall period does not exceed 90 days from the date of the contract". The latter
is permitted only in the case of specified shares. The brokers who carry over the outstanding pay
carry over charges (cantango or backwardation), which are usually determined by the rates of
interest prevailing. A member broker in an Indian stock exchange can act as an agent, buy and
sell securities for his clients on a commission basis and also can act as a trader or dealer as a
principal, buy and sell securities on his own account and risk, in contrast with the practice
prevailing on New York and London Stock Exchanges, where a member can act as a jobber or a
broker only. The nature of trading on Indian Stock Exchanges are that of age old conventional
style of face-to-face trading with bids and offers being made by open outcry. However, there is a
great amount of effort to modernize the Indian stock exchanges in the very recent times.

1.1.3 Over The Counter Exchange of India (OTCEI)


The traditional trading mechanism prevailed in the Indian stock markets gave way to many
functional inefficiencies, such as, absence of liquidity, lack of transparency, unduly long
settlement periods and benami transactions, which affected the small investors to a great extent.
To provide improved services to investors, the country's first ring less, scrip less, electronic stock
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Factor Affecting Stock Market Volatility

exchange - OTCEI - was created in 1992 by country's premier financial institutions - Unit Trust
of India, Industrial Credit and Investment Corporation of India, Industrial Development Bank of
India, SBI Capital Markets, Industrial Finance Corporation of India, General Insurance
Corporation and its subsidiaries and Can Bank Financial Services. Trading at OTCEI is done
over the centers spread across the country. Securities traded on the OTCEI are classified into:

Listed Securities - The shares and debentures of the companies listed on the OTC can be
bought or sold at any OTC counter all over the country and they should not be listed
anywhere else

Permitted Securities - Certain shares and debentures listed on other exchanges and units
of mutual funds are allowed to be traded

Initiated debentures - Any equity holding at least one-lakh debentures of particular scrip
can offer them for trading on the OTC.

OTC has a unique feature of trading compared to other traditional exchanges. That is, certificates
of listed securities and initiated debentures are not traded at OTC. The original certificate will be
safely with the custodian. But, a counter receipt is generated out at the counter, which substitutes
the share certificate and is used for all transactions. In the case of permitted securities, the system
is similar to a traditional stock exchange. The difference is that the delivery and payment
procedure will be completed within 14 days. Compared to the traditional Exchanges, OTC
Exchange network has the following advantages:

OTCEI has widely dispersed trading mechanism across the country, whichprovides
greater liquidity and lesser risk of intermediary charges.

Greater transparency and accuracy of prices is obtained due to the screenbased scrip less
trading.

Since the exact price of the transaction is shown on the computer screen, the investor
gets to know the exact price at which s/he is trading.

Faster settlement and transfer process compared to other exchanges.

In the case of an OTC issue (new issue), the allotment procedure is completed in a month
and trading commences after a month of the issue closure, whereas it takes a longer
period for the same with respect to other exchanges.

Thus, with the superior trading mechanism coupled with information transparency investors are
gradually becoming aware of the manifold advantages of the OTCEI.

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1.1.4 National Stock Exchange (NSE)


With the liberalization of the Indian economy, it was found inevitable to lift the Indian stock
market trading system on par with the international standards. On the basis of the
recommendations of high-powered Pherwani Committee, Industrial Development Bank of India,
Industrial Credit and Investment Corporation of India, Industrial Finance Corporation of India,
all Insurance Corporations, selected commercial banks and others incorporated the National
Stock Exchange in 1992. Trading at NSE can be classified under two broad categories:

Wholesale debt market and

Capital market.

Wholesale debt market operations are similar to money market operations-institutions and
corporate bodies enter into high value transactions in financial instruments such as government
securities, treasury bills, public sector unit bonds, commercial paper, certificate of deposit, etc.
There are two kinds of players in NSE:

Trading members and

Participants.

Recognized members of NSE are called trading members who trade on behalf of themselves and
their clients. Participants include trading members and large players like banks who take direct
settlement responsibility. Trading at NSE takes place through a fully automated screen-based
trading mechanism, which adopts the principle of an order-driven market. Trading members can
stay at their offices and execute the trading, since they are linked through a communication
network. The prices at which the buyer and seller are willing to transact will appear on the
screen. When the prices match the transaction will be completed and a confirmation slip will be
printed at the office of the trading member. NSE has several advantages over the traditional
trading exchanges. They are as follows:

NSE brings an integrated stock market trading network across the nation. Investors can
trade at the same price from anywhere in the country since inter-market operations are
streamlined coupled with the countrywide access to the securities.

Delays in communication, late payments and the malpractices prevailing in the


traditional trading mechanism can be done away with greater operational efficiency and
informational transparency in the stock market operations, with the support of total
computerized network.

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Unless stock markets provide professionals service to small investors, and foreign investors will
not be interested in capital market operations. And capital market being one of the major sources
of long-term finance for industrial projects, India cannot afford to damage the capital market
path. In this regard NSE gains vital importance in the Indian capital market system
.

1.1.5 Bombay Stock Exchange(BSE) Sensex


For the premier Stock Exchange that pioneered the stock broking activity in India, 128 years of
experience seems to be a proud milestone. A lot has changed since 1875 when 318 persons
became members of what today is called "The Stock Exchange, Mumbai" by paying a princely
amount of `1. Since then, the country's capital markets have passed through both good and bad
periods. The journey in the 20th century has not been an easy one. Till the decade of eighties,
there was no scale to measure the ups and downs in the Indian stock market. The Stock
Exchange, Mumbai (BSE) in 1986 came out with a stock index that subsequently became the
barometer of the Indian stock market. SENSEX is not only scientifically designed but also based
on globally accepted construction and review methodology. First compiled in 1986, SENSEX is
a basket of 30 constituent stocks representing a sample of large, liquid and representative
companies. The base year of SENSEX is 1978-79 and the base value is 100. The index is widely
reported in both domestic and international markets through print as well as electronic media.
The Index was initially calculated based on the "Full Market Capitalization" methodology but
was shifted to the free-float methodology with effect from September 1, 2003. The "Free-float
Market Capitalization" methodology of index construction is regarded as an industry best
practice globally. All major index providers like MSCI, FTSE, STOXX, S&P and Dow Jones use
the Free-float methodology. Due to is wide acceptance amongst the Indian investors; SENSEX is
regarded to be the pulse of the Indian stock market. As the oldest index in the country, it
provides the time series data over a fairly long period of time (From 1979 onwards). Small
wonder, The SENSEX has over the years become one of the most prominent brands in the
country. The growth of equity markets in India has been phenomenal in the decade gone by.
Right from early nineties the stock market witnessed heightened activity in terms of various bull
and bear runs. The SENSEX captured all these events in the most judicial manner. One can
identify the booms and busts of the Indian stock market through SENSEX.

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1.1.6. BSEs Turn over for last five years:

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Year

Buy (` In Crore)

Sell(` In Crore)

Net(` In Crore)

2006-07

1,243,150.29

1,252,592.08

-9,441.75

2007-08

2,451,354.20

2,447,910.17

3,444.04

2008-09

1,742,959.82

1,748,542.87

-5,583.11

2009-10

1,317,669.53

2,184,954.48

45,915.44

2010-11

1259249.6

1,970,448.27

22922.96

Chapter 2
Literature Review
Macroeconomic Factors and Stock Market: Literature Review
Aman Srivastava
Jaipuria Institute of Management
June 11, 2009
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1417785

Abstract:
The movement and volatility in stock markets often reflect the direction of any economy. The
available literature suggests that since the inception of stock markets researchers are making
attempts

to

establish

relationship

between

change

in

macroeconomic

factors

and stock market returns. From the literature review, the study has seen that asset-pricing
theories do not specify the fundamental macroeconomic factors that affect securities prices.
The purpose of this paper is to investigate the impact of change in macroeconomic factors
on stock market. In this paper the study has done a literature review and finally has concluded
the relevance of macroeconomic factors for stock markets. The findings of the study conclude
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that the stock markets are very well affected by certain macroeconomic factors which may be
local or international. The findings of the literature review suggests that the major
macroeconomic factors relatively more affecting the stock market in long run are industrial
production; inflation, foreign exchange rate, money supply and interest rate.

Chapter 3
Objective of study:3.1 To study volatility in Indian stock market while taking SENSEX of Bombay stock

exchange as a source of secondary data which broadly represent Indian stock market.
3.2 To study the factors which are making Indian stock market volatile.
3.3 To furnish institutional material relevant for understanding the environment in which
stock market fluctuation are occurring.

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Chapter 4
Research Methodology:Sources of data:
Data used in this study is of secondary in nature. Sensex is taken as a source of information
which widely describes Indian stock market. Here monthly prices of BSE Sensex, Inflation, IIP
numbers are taken for the study purpose.

Hypothesis:
This is the exploratory research which tries to shows the factors which are making stock market
volatile.
1. Any fluctuation in foreign market has more effect on Indian stock market than that of
domestic market.
2. In the given volatile economic conditions, the market is efficient to any news and
information.
`

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Chapter 5
Scope:
5.1 This study can be used by investors, traders and other professionals as a supplement to their
own research.
5.2 This study can be used to individual who are at initial stage of investment in stock market.
5.3 To different Organization who provides tips for Buying and Selling shares.
5.4 To review market forecast provided by the organization about fluctuation in the market.

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Chapter 6
Data Analysis and Interpretation
For the month of April 2006
Date

Open

High

Low

Close

3-Apr-06

11342.96

11579.1

4-Apr-06

11599.8

11710.69 11570.11 11638.01

5-Apr-06

11671.14

11755.2

7-Apr-06

11845.13 11930.66 11564.87 11589.44

11342.96 11564.36

11653.39

11746.9

10-Apr-06 11620.38 11691.92 11535.28 11662.55


12-Apr-06 11693.15 11702.77 11302.78 11355.73
13-Apr-06 11366.91 11380.83 11008.43 11237.23
17-Apr-06 11323.74

11560.9

11323.74 11539.68

18-Apr-06 11624.97 11834.77 11624.97 11821.57


19-Apr-06 11880.05 11986.09 11799.62 11895.98
20-Apr-06 11941.49 12053.74 11866.21 12039.55
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21-Apr-06

12053.9

12102

11860.35

12030.3

24-Apr-06 12063.73 12071.07 11882.48 11915.24


25-Apr-06 11943.08

11953

26-Apr-06 11677.05 11965.09


27-Apr-06

11968.8

11621.61 11646.78
11635.4

11938.53

12086.91 11803.49 11835.02

28-Apr-06 11698.68 11877.32 11344.61 11851.93

Analysis
In starting of financial year market was opened at 11,342 points and closed at 11,851 points at
the end of the month. This month market was crossed 12,000 mark and made all time high
12,102 on 21st & all time low 11,008 on 13th.

Reasons

Increased in crude oil prices.

Financial Results of Indian corporate.

FIIs positive response in Financial Results.

FIIs positive response in 3rd week than average buying and selling.

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For the month of May 2006


Date

Open

High

Low

Close

2-May-06

12103.78 12288.51 12103.78 12218.78

3-May-06

12231.12 12337.01 12134.19 12310.72

4-May-06

12358.31 12482.91 12264.14 12347.63

5-May-06

12373.47 12443.54 12304.59

8-May-06

12393.22 12511.07 12393.22 12462.47

9-May-06

12488.38 12546.47 12356.04 12513.86

10-May-06

12546.93 12624.37 12530.98 12612.38

11-May-06

12631.54 12671.11 12397.02 12435.41

12-May-06

12400.71 12421.76 12224.44 12285.11

15-May-06

12272.64 12272.64 11770.76

16-May-06

11861.18 11954.51 11378.96 11873.73

17-May-06

11962.87 12238.81 11962.87 12217.81

18-May-06

12163.98 12163.98 11330.45 11391.43

19-May-06

11549.67 11697.11 10799.01 10938.61

22-May-06

11071.63

11142.9

9826.91

23-May-06

10590.67

10859.2

10185.48 10822.78

24-May-06

10830.98 11000.96 10504.59 10573.15

25-May-06

10520.9

12359.7

11822.2

10481.77

10720.67 10274.93 10666.32


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26-May-06

10735.14 11050.77 10735.14 10809.35

29-May-06

10855.03 10992.38 10781.61 10853.14

30-May-06

10886.61 10988.23 10722.92 10786.63

31-May-06

10679.49 10679.49 10111.96 10398.61

Analysis
In this may market opened 300 points up than the last trading day of the April. But after that
market was decline by every day and go down 10,000 points on 22nd May. This month market
made all time high 12,670 on 10th May and all time low 9,827 on 22nd May. On 31st May market
closed at 10,398 points which was 1500 points less than the previous month closing.

Reasons

FIIs were selling more than the buying

Crude oil price declining

Kerala and Bengal election

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For the month of June 2006


Date

Open

High

Low

Close

1-Jun-06

10472.46

10597.23

10017.82

10071.42

2-Jun-06

10104.57

10477.35

10011.45

10451.33

5-Jun-06

10537.08

10552.38

10186.33

10213.48

6-Jun-06

10087.96

10192.73

9884.89

9957.32

7-Jun-06

9919.28

10051.81

9609.21

9756.76

8-Jun-06

9664.9

9664.9

9200.8

9295.81

9-Jun-06

9270.78

9849.2

9262.2

9810.46

12-Jun-06

9858.47

9859.38

9428.03

9476.15

13-Jun-06

9360.06

9360.06

8993.58

9062.65

14-Jun-06

9156.97

9387.06

8799.01

8929.44

15-Jun-06

9133.36

9582.97

9092.16

9545.06

16-Jun-06

9703.06

10118.28

9703.06

9884.51

19-Jun-06

9903.11

10049.94

9755.21

9997.84

20-Jun-06

9958.33

9958.33

9745.17

9822.52

21-Jun-06

9797.87

10054.05

9757.54

10040.14

22-Jun-06

10093.38

10362.74

10093.38

10275.88

23-Jun-06

10201.31

10453.61

10025.19

10401.3

26-Jun-06

10427.85

10451.47

9991.12

10042.06

27-Jun-06

10058.29

10224.26

9902.33

10151.01

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28-Jun-06

10067.55

10204.66

9909.76

10129.7

29-Jun-06

10193.94

10326.05

10109.56

10162.16

30-Jun-06

10316.12

10626.84

10316.12

10609.25

Analysis
In this month market was opened at 10,472 points. This month investors were losing hope for the
good return in first fortnight when market touched 8,799. This month market movement was
1800 to 2000 points. This month market made all time high at 10,626 points on last trading day
of the month and gave closed above 10,000 points.

Reasons

FIIss selling presser in first fortnight and buying presser in second fortnight

Increased in crude prices

Increased Inflation rate

Good expectation of Q1 results

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For the month of July 2006


Date

Open

High

Low

Close

3-Jul-06

10646.5
6

10729.9
2

10589.4
6

10695.26

4-Jul-06

10755.4
5

10800.1
1

10644.7
2

10662.22

5-Jul-06

10641.3
3

10940.4
5

10611.3
5

10919.64

6-Jul-06

10836.4
9

10839.5
3

10703

10767.97

7-Jul-06

10813.7
5

10887.6
7

10440.0
2

10509.53

10-Jul-06

10484.2
5

10704.7
8

10461.7
3

10684.3

11-Jul-06

10699.6
2

10699.6
2

10566.7
1

10614.35

12-Jul-06

10604.6
4

10939.6
8

10549.8
5

10930.09

13-Jul-06

10922.6
1

10922.6
1

10797.4
9

10858.5

14-Jul-06

10782.9
8

10782.9
8

10563.7
6

10678.22

17-Jul-06

10647.2
6

10647.2
6

10262.5
7

10293.22

18-Jul-06

10336.6
2

10406.4
3

10149.8
5

10226.78

19-Jul-06

10320.5
9

10406.2
1

9972.73

10007.34

20-Jul-06

10247.8
7

10409.5
8

10225.1
8

10352.94

21-Jul-06

10336.3
8

10336.3
8

10035.2
4

10085.91

24-Jul-06

9881.03

10252.7

9875.35

10215.37
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5
25-Jul-06

10351.7
5

10443.0
5

10323.7
7

10415.61

26-Jul-06

10465.3
4

10648.7
7

10362.6
1

10617.27

27-Jul-06

10671.7
7

10762.6
7

10589.6
8

10741.59

28-Jul-06

10787.6
5

10787.6
5

10603.8
3

10680.23

31-Jul-06

10759.1
9

10853.9
1

10710.2
9

10743.88

Analysis
Market was stable whole of the month. Market movement was 1000 points of this month. Market
tried to crossed 11,000 but closed at 10,939 points on 12th which was all time high of this month.
Market gave positive close at the end of the month than the opened on very first day.

Reasons

Rice in the crude oil price

Rumor of resigning of our Prime Minister Dr. Manmohan Singh.

Weak global markets concern

Healthy result given by Indian major companies

RBI hiked interest rate but not affect heavily on market

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Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

For the month of August 2006

Date

Open

1-Aug-06

10737.5

2-Aug-06

10747.13 10891.38 10730.13 10876.19

3-Aug-06

10955.27

4-Aug-06

10951.81 11039.34 10810.04 10866.51

7-Aug-06

10863.28 10869.66 10780.01 10812.64

8-Aug-06

10839.53 11028.02 10839.53 11014.97

9-Aug-06

10990.73 11187.65 10943.83 11145.18

10-Aug-06

11175

High

Low

Close

10777.47 10646.65 10751.66

11081.9

10875.87 10923.16

11213.03 11051.75 11149.17

11-Aug-06

11181.34 11241.11 11069.25 11192.46

14-Aug-06

11221.86

16-Aug-06

11384.05 11507.92 11384.05 11448.31

17-Aug-06

11498.47 11551.59 11379.44 11477.48

18-Aug-06

11507.14 11508.17 11409.11 11465.72

21-Aug-06

11488.03

11330.3

11531.6

11221.86 11312.99

11375.9

11511.68
25

Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

22-Aug-06

11547.42 11619.86 11460.93 11502.62

23-Aug-06

11579.92 11579.92 11374.86 11406.65

24-Aug-06

11367.74 11566.89 11297.23 11531.95

25-Aug-06

11589.35 11635.25

28-Aug-06

11583.73 11633.35 11552.44 11619.52

29-Aug-06

11651.96 11739.77 11651.96 11706.85

30-Aug-06

11735.05 11756.08 11643.38 11723.92

31-Aug-06

11754.07 11794.43 11675.08 11699.05

11542.1

11572.2

Analysis
Sensex opened at 10,737 and make the low of 10,646 on that day itself. With making
high of 11,794 on the last trading day of the month.Sensex closed at 11,700. Sensex was in
positive 1000 than last months closing.

Reasons

US Federal Reserves decision to hold interest rates steady at old level(5.25%).

Fall in crude price.

26
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

For the month of September 2006


Date

Open

High

Low

Close

1-Sep-06

11699.57 11795.02 11666.01 11778.02

4-Sep-06

11824.49 11939.96 11824.49 11914.21

5-Sep-06

11927.42 11945.53 11847.93

6-Sep-06

11908.53 11983.48 11904.92 11933.21

7-Sep-06

11893.33

8-Sep-06

11859.44 11940.58 11825.22 11918.65

11-Sep-06

11959.56

12-Sep-06

11564.95 11671.64 11445.19 11660.79

13-Sep-06

11723.78 11938.41 11723.78 11893.79

14-Sep-06

11936.8

12002.94 11892.24 11973.02

15-Sep-06

11977.69

12041.7

18-Sep-06

12006.19 12114.95 12006.19

19-Sep-06

12103.44

11921.3
11971.6

12152.6

11904.6

11815.43 11853.85
11505.6

11550.69

11847.61 12009.59
12071.3

11915.21 11970.47

27
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

20-Sep-06

11946.32 12128.99 11833.61 12109.14

21-Sep-06

12167.91

22-Sep-06

12244.41 12303.42

25-Sep-06

12257.27 12273.45 12145.09 12173.91

26-Sep-06

12206.79 12331.45 12160.58 12321.19

27-Sep-06

12359.01 12442.82 12339.98 12366.91

28-Sep-06

12388.66 12431.79 12340.17 12380.74

29-Sep-06

12414.66 12485.17 12381.29 12454.42

12285.9

12167.91 12274.27
12170.2

12236.78

Analysis
Sensex opened at 11699.57 and make the low of 11,445 on 12th September. With making
the high of 12,485 on the last trading day Sensex closed at 12,454.

Reasons

Crude oil price dropped to the five month lower.

Strong support from US and European Economy.

IIP rose to 12.4 per cent

Appreciation of Rupee Value.

Expectation of Short interest rate remains unchanged.

28
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

For the month of October 2006


Date

Open

High

Low

Close

12343.8

12366.39

3-Oct-06

12473.79 12489.28

4-Oct-06

12401.09 12419.65 12178.83 12204.01

5-Oct-06

12299.21 12415.97 12299.21 12389.41

6-Oct-06

12391.26 12434.22 12357.96 12372.81

9-Oct-06

12335.82 12429.74 12261.49 12365.83

10-Oct-06

12416.43 12481.93 12341.34 12363.77

11-Oct-06

12446.72 12514.18 12301.51 12353.49

12-Oct-06

12387.89 12558.71 12315.02 12537.98

13-Oct-06

12632.62 12756.23 12632.62 12736.42

16-Oct-06

12785.03 12953.76 12785.03 12928.18

17-Oct-06

12981.53 12994.45 12819.35 12883.83

18-Oct-06

12886.33 12920.59 12830.84 12858.48

19-Oct-06

12881.8

12925.6

12654.98 12723.59

29
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

20-Oct-06

12756.41 12849.02 12679.85

23-Oct-06

12757.31

26-Oct-06

12636.16 12718.31 12636.16 12698.41

27-Oct-06

12741.85 12921.23 12741.85 12906.81

30-Oct-06

12925.43

31-Oct-06

13048.76 13075.85 12907.94

12766.3

13039.3

12709.4

12612.36 12623.28

12844.85 13024.26
12961.9

Analysis
Market opened at 12,473 points p 3rd Oct. and closed at 12,961 on 31st Oct. Market made its all
time low at 12,178 points at 4th Oct. and all time low at 13,075 points on last trading day of the
month which was good sign for the investors. Market movement was 600 to 800 points of this
month. This month market crossed 13,000 points which was made history of Sensex life. It took
135 days for Sensex to move from 12,000 to 13,000 and 123 days to move from 12,500 to
13,000.

Reasons

"The 8 per cent GDP growth rate and the remarkable corporate performance had
contributed to the rally in the stock markets,"

The BSE Bankex was up 1.9 per cent at 6,517.85.

The BSE Midcap Index ended at 5,422.63 up 26.36 points or 0.5 per cent.

Heavy buying led by FIIs and mutual funds thus market was touched 13,000 level

30
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

For the month of Nov 2006


Date

Open

High

Low

Close

12937.3

13033.04

1-Nov-06

12992.62 13050.73

2-Nov-06

13062.52 13137.74 13014.65 13091.12

3-Nov-06

13119.34 13146.86 13017.84 13130.79

6-Nov-06

13155.11 13206.87 13113.39 13186.89

7-Nov-06

13208.79 13300.69 13135.21 13156.66

8-Nov-06

13176.08 13202.68 12950.57 13072.51

9-Nov-06

13107.78 13192.89 13069.85 13137.49

10-Nov-06

13187.51 13303.85 13104.98 13282.91

13-Nov-06

13295.24 13410.08 13287.28

13399

14-Nov-06

13439.71 13486.74 13380.77

13425.5

15-Nov-06

13476.28 13506.08 13390.79 13469.37

16-Nov-06

13500.7

17-Nov-06

13678.04 13678.04 13383.43 13429.48

20-Nov-06

13390.95 13463.06 13200.36 13430.71

21-Nov-06

13434.58 13630.41 13434.58 13616.77

13588.01 13459.28 13505.89

31
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

22-Nov-06

13625.09 13740.39 13625.09 13706.53

23-Nov-06

13667.13 13790.82 13643.47 13680.83

24-Nov-06

13669.81 13767.85 13665.52 13703.33

27-Nov-06

13716.46 13799.02 13716.46 13773.59

28-Nov-06

13690.67 13691.12 13577.38 13601.95

29-Nov-06

13649.2

13711.76 13586.04 13616.73

30-Nov-06

13630.9

13745.16 13630.61 13696.31

Analysis
In this month market opened at 12,992 points on 1st Nov. and that day market made its all time
low of this month. Market movement in this month was 1000 to 1200 points. This month market
made its all time high at 13,799 points on 27th Nov. and gave closed at 13,696 points on the last
trading day of this month.

Reasons

FIIs positive impact on market

Previous month created good impact

32
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

For the month of Dec 2006

Date

Open

High

Low

Close

1-Dec-06

13729.6
7

13857.8
1

13725.7
8

13844.78

4-Dec-06

13846.7
1

13912.5
4

13828.9

13874.33

5-Dec-06

14028.4
7

14028.4
7

13905.6
5

13937.65

6-Dec-06

13951.0
9

14035.3

13847.6
7

13949

7-Dec-06

13962.9
4

14002.7
2

13915.7
4

13972.03

8-Dec-06

14007.6
7

14009.5
6

13756.8
6

13799.49

11-Dec-06

13783

13801.9
8

13261.7
3

13399.43

12-Dec-06

13413.6
1

13492.2
1

12801.6
5

12995.02

13-Dec-06

13039.0
2

13223

12830.3
8

13181.34

33
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

14-Dec-06

13256.8
1

13524.7
7

13239.7
9

13487.16

15-Dec-06

13545.6

13669.6
5

13545.6

13614.52

18-Dec-06

13695.6

13744.1
7

13416.4

13731.09

19-Dec-06

13737.3
6

13748.6
2

13237.3
9

13382.01

20-Dec-06

13452.6
9

13568.0
9

13232.5
6

13340.21

21-Dec-06

13313.9
1

13441.3
6

13182.3
5

13384.86

22-Dec-06

13398.1
3

13493.8
8

13362.1
1

13471.74

26-Dec-06

13501.4
4

13726.6
2

13490.7
7

13708.34

27-Dec-06

13734.0
1

13911.5
9

13734.0
1

13859.69

28-Dec-06

13893.2
9

13960.3
9

13819.7
7

13846.34

29-Dec-06

13873.0
3

13929.1

13770.0
6

13786.91

Analysis
In Dec, Market opened at 13,729 on 1st Dec. and closed at 13,786 on 29th Dec. Above this judge
that this month market stable at the opening situation. In this month market movement was 1200

34
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

to 1300 points. The Sensex on December 5, 2006 crossed the 14,000-mark to touch 14,028
points which was created new milestone. Overall this month was good for investor.

Reasons

The market was broken by the RBI decision to hike in CRR

Tata and CSN for acquiring Corus resulted in 2.77 per cent decline in the share price of
Tata Steel. ( Bidding)

Both FIIs and MFs were net sellers to the tune of `333 crore and `1,305 crore,
respectively.

For the month of Jan 2007

Date

Open

High

Low

Close

2-Jan-07

13827.7
7

13980.5
4

13797.4
4

13942.24

35
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

3-Jan-07

13969.4
5

14035.6
7

13897.4
2

14014.92

4-Jan-07

14029.0
4

14060.3
5

13850.3
8

13871.71

5-Jan-07

13768.7
9

13971.8
2

13763.3
9

13860.52

8-Jan-07

13855.8
9

13855.8
9

13599.8
7

13652.15

9-Jan-07

13650.9
6

13748.4
2

13493.3
8

13566.33

10-Jan-07

13569.5
7

13569.5
7

13336.5
2

13362.16

11-Jan-07

13331.3
8

13667.8

13303.2
2

13630.71

12-Jan-07

13729.0
7

14070.8
8

13729.0
7

14056.53

15-Jan-07

14110.4
4

14202.1
2

14103.1
2

14129.64

16-Jan-07

14146

14211.1
5

14070.6
5

14114.73

17-Jan-07

14116.2
5

14185.1
2

14089.6
3

14131.34

18-Jan-07

14165.7
7

14325.9
2

14140.3
5

14217.75

19-Jan-07

14271.2
4

14300.1
1

14067.5
2

14182.71

22-Jan-07

14217.8

14259.0
7

14111.7
5

14209.24

23-Jan-07

14212.1
2

14212.1
2

14025.7
4

14041.24

24-Jan-07

14069.6
1

14156.4
6

14043.5
4

14110.46

25-Jan-07

14151.6

14307.1

14115.4

14282.72
36

Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

29-Jan-07

14306.9
7

14316.5
4

14185.9
2

14211.96

31-Jan-07

14219.3
8

14269.3
1

14045.6
1

14090.92

Analysis
In this month open as previous trend at 13,827 points on 2nd Jan. achieving new milestone.
Market made all time high at 14,325 points 18th on Jan. and made all time low at 13,303 points
on 11th June. Market gave closed at 14090 points on last trading days of the months.

Reasons

This bullish had supported by FIIs and Mutual Funds.

Successful IPO ( Parsvnath Developers and Sobha Developers)

Third Quarter result

37
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

For the month of Feb 2007

Date

Open

High

Low

Close

1-Feb-07

14124.36 14278.08 14109.91 14267.18

2-Feb-07

14293.11 14462.77 14293.11 14403.77

5-Feb-07

14432.09 14526.51 14372.36

6-Feb-07

14541.24

7-Feb-07

14493.56 14663.26 14478.45 14643.13

8-Feb-07

14690.58 14697.69 14523.16 14652.09

9-Feb-07

14684.35 14723.88 14493.67

14538.9

12-Feb-07

14529.28 14529.28 14146.22

14190.7

13-Feb-07

14168.33 14363.74

13957.7

14090.98

14-Feb-07

13990.41 14036.61 13805.36

14009.9

15-Feb-07

14107.09 14372.96 14107.09 14355.55

19-Feb-07

14406.88 14479.18 14372.07

20-Feb-07

14449.23 14466.76 14230.47 14253.38

21-Feb-07

14199.07 14312.88 14157.72 14188.49

22-Feb-07

14200.11 14287.03 13978.05 14021.31

14564.8

14515.9

14452.78 14478.19

14402.9

38
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

23-Feb-07

14071.27 14071.27 13568.08 13632.53

26-Feb-07

13684.95

27-Feb-07

13703.41 13703.41 13408.56 13478.83

28-Feb-07

13045.12 13298.52 12800.91 12938.09

13723.4

13383.88 13649.52

Analysis
In February 2007, Market open at high 35 points than last day of the last month. In this
month market was very hurt because in this month market movement 1100 to 1200 points. On 1st
Feb market open at 14124.36 and close on 28th Feb at 12938.09. In this month market run their
previous trend till budget was not declared. After, Budget market was decline in last week of the
February.

Reasons

Raising Short-Term Capital Gains Tax to 15 per cent

Making Long-Term Capital Gains Taxable

Introduction of Tax on Dividends

Increase in Service Tax rates: The spread of Service

Non Reintroduction of Section 80 L

39
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

For the month of March 2007

Date

Open

High

Low

Close

1-Mar-07

13013.7
4

13193.1
3

12861.3
5

13159.55

2-Mar-07

13139.1

13254.0
3

12836.7
5

12886.13

5-Mar-07

12716.8
5

12716.8
5

12344.4
4

12415.04

6-Mar-07

12573.0
1

12760.2
2

12427.1
3

12697.09

7-Mar-07

12792.9

12902.1
8

12390.4
6

12579.75

8-Mar-07

12649.7
7

13099.8
3

12596.8
6

13049.35

9-Mar-07

13107.3
7

13145.7
2

12788.1
6

12884.99

12-Mar-07

12916.6
7

13056.8
6

12844.9
9

12902.63

13-Mar-07

12924.5

13026.8
5

12817.6
2

12982.98

14-Mar-07

12694.3
6

12694.3
6

12504.1

12529.62

15-Mar-07

12655.9
4

12789.8
1

12510.7
5

12543.85

16-Mar-07

12570.5
2

12638.7
8

12316.1

12430.4

40
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

19-Mar-07

12484.6
4

12655

12426.6
6

12644.99

20-Mar-07

12746.9
4

12798.8

12674.7
7

12705.94

21-Mar-07

12735.9
1

12964.9
4

12664.3
3

12945.88

22-Mar-07

13071.8
1

13326.2
4

13071.8
1

13308.03

23-Mar-07

13343.5
7

13386.9
5

13196.9

13285.93

26-Mar-07

13345.7
3

13345.7
3

13090.8

13124.32

28-Mar-07

13034.2
7

13035.5
6

12861.1
8

12884.34

29-Mar-07

12862.5
3

13004.4

12832.6
9

12979.66

30-Mar-07

13018.2
1

13111.8
7

12984.1
3

13072.1

Analysis
In March 2007, Market open at 13013.74 on 1st March and close at 13072.1 on 30stMarch which
indicated that there was big movement on first day and last day of the month. In this month
market was open at low than previous week of last month. In this month market was 13386.95 all
time high on 23rd march of this month and 12316.1 all time low on 16th march. Market movement
900to1000 points in March. In first week of March market was fall because of some changes in
Budget 2007-08.

Reason

41
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

US markets remained quiet this fortnight with DOW maintaining overall stagnancy over
the period having several ups and downs during the period which affected the Indian
economy very much.

RIL in effort to become global player in the petrochemicals would be signing MoU with
Dow chemical, the second largest chemical company in the world.

Getting strong turbulence from the US markets, the market is supposed to remain volatile
in this last fortnight before the end value buying in fundamentally strong counters, if
market corrects itself to the attractive levels.

For the month of April 2007

Date

Open

High

Low

Close

2-Apr-07

12811.93 12811.93 12425.52 12455.37

3-Apr-07

12503.75 12657.75 12481.86 12624.58

4-Apr-07

12691.24 12835.36 12691.24 12786.77

5-Apr-07

12791.6

12899.31

9-Apr-07

12904.85

13194

12904.85 13177.74

10-Apr-07

13236.2

13236.2

13075.48 13189.54

12711.5

12856.08

42
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

11-Apr-07

13221.76

13294.9

12-Apr-07

13127.86 13160.15 13030.87 13113.81

13-Apr-07

13163.02 13421.05 13119.88 13384.08

16-Apr-07

13479.49

17-Apr-07

13733.18 13755.76 13581.04 13607.04

18-Apr-07

13602.9

13602.9

13672.19

19-Apr-07

13538.71 13658.11 13423.64

13619.7

20-Apr-07

13684.95 13915.62 13684.95 13897.41

23-Apr-07

13972.81 14046.52 13879.39 13928.33

24-Apr-07

13893.72 14197.32 13850.07 14136.72

25-Apr-07

14141.7

26-Apr-07

14273.17 14383.72 14127.18 14228.88

27-Apr-07

14219.25 14219.25 13884.53 13908.58

30-Apr-07

13823.4

13708.4

13762.92

13161.21 13183.24

13479.49 13695.58

14238.29 14052.17 14217.77

13901.12 13693.59 13872.37

Analysis
In April, First fortnight market taking strong position in first half but bear took firm grip again in
the latter week. In 2st April market was opened at 250 points down than previous month closing
and market moves 1500 to 1800 points. This month market so volatile but finally markets close
on 13872.37 which was 700 points high than the previous month closing. Sensex lost around 400
points in last two day of second week.

Reasons

Market downtrend was led by the banking and IT stocks mainly. There is fear of
decrease in credit demand if the lending rates rise further which dipped the banking
43
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

stock. IT declined on the grounds of reduced US exports earnings due to appreciation in


Rupee prices against Dollar.

In this month Rupee was touched its seven year high level of 43.01 against Dollar which
is a big concern for the IT sector as well the export oriented companies their export as
well the earnings may witness fall.

Market bled heavily in the aftermath of the RBI decision to hike the CRR and Rapo rate
as result Sensex reached at a six months low level going down by 616 points.

For the month of May 2007

Date

Open

High

Low

Close

3-May-07

13987.77 14107.06 13987.77 14078.21

4-May-07

14129.89 14189.21 13912.92 13934.27

7-May-07

14044.71 14067.07 13861.38 13879.25

8-May-07

13886

13956.4

13741.24 13765.46

9-May-07

13707.86 13806.37 13612.04 13781.51

10-May-07

13823.36 13976.79 13745.23 13771.23

11-May-07

13691.86 13864.18 13562.95 13796.16

14-May-07

13954.41 14026.02 13924.02 13965.86

44
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

15-May-07

13948.91 14023.86 13885.46 13929.33

16-May-07

13949.81 14159.36 13936.88 14127.31

17-May-07

14217.36 14352.98 14217.36 14299.71

18-May-07

14261.47 14337.06 14201.01 14303.41

21-May-07

14414.83

22-May-07

14458.48 14483.59 14348.26 14453.72

23-May-07

14490.03 14500.64 14325.89 14363.26

24-May-07

14344.7

25-May-07

14073.61 14364.95 14046.06 14338.45

28-May-07

14467.85 14527.47

29-May-07

14418.98 14530.15 14372.07 14508.21

30-May-07

14501.46 14576.37 14379.21 14411.38

31-May-07

14451.31 14573.81 14448.57 14544.46

14451.3

14384.61

14418.6

14389.66 14174.05 14218.11

14368.4

14397.89

Analysis
On 1st May market was opened around 100 points high than previous month closing. In this
month market moved almost up rally. All time high of this month was 14576 on 30 th may and all
time low was 13562 on 11th may. So this month market movement was around 2000 points. This
month closing same as previous month 700 points high than April. At first fortnight market
gained 312 points led by Ril which hit its all time high.

Reasons

Strong results especially by the IT companies like results especially by the IT companies
like Wipro and Satyam which performed above par.

Globally, the Dow in the US, after crossing the 13,000 level, moved forward slowly and
steadily, barring a few weak movements.

45
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

The fortnight also witnessed increased political heat on account of the UP elections. The
BSP appears to be headed towards majority and is likely to form the government on its
own. The Congress has emerged a poor fourth and the ouster of Mulayam Singh
government may affect the market sentiments.

Favorable monetary policy declared by RBI this affect on Banking stock and finally
market closed above 14000.

For the month of June 2007

Date

Open

High

Low

Close

1-Jun-07

14610.28

14682.1

4-Jun-07

14618.78 14683.36 14465.68 14495.77

5-Jun-07

14514.2

6-Jun-07

14551.53 14590.82 14234.07 14255.93

7-Jun-07

14195.84 14362.58 14139.09 14186.18

8-Jun-07

14063.94 14229.22 14010.61 14063.81

11-Jun-07

14170.81 14268.91 14057.63 14083.41

12-Jun-07

14122.33 14153.44 13946.99 14130.95

13-Jun-07

14139.92 14152.79 13968.38 14003.03

14539.89 14570.75

14571.31 14432.67 14535.01

46
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

14-Jun-07

14087.91 14219.24 14087.91 14203.72

15-Jun-07

14277.61 14326.55 14112.53 14162.71

18-Jun-07

14241.76 14283.71 14057.26 14080.14

19-Jun-07

14088.58 14315.18 14058.79

20-Jun-07

14359.96 14449.38 14347.58 14411.95

21-Jun-07

14415.56 14526.44 14406.67 14499.24

22-Jun-07

14508.63 14560.32 14441.76 14467.36

25-Jun-07

14469.43 14521.62 14424.71 14487.72

26-Jun-07

14478.75 14560.48 14478.75 14501.08

27-Jun-07

14520.19 14520.19 14407.12 14431.06

28-Jun-07

14498.05 14537.04 14435.24 14504.57

29-Jun-07

14589.52 14663.25 14574.45 14650.51

14295.5

Analysis
On 1st day market gained 170 points supported from the Banking stock. In this month market
movement was 500 to 600 points. In this month market was continuously up rally. This month
market created 14683 points all time high on 4th June and 13946 points all time low on 12th June
of this month. Then rest of trading days market closing above 14000 points.

Reasons

Banking stocks SBI and PNB leading the rally. These stocks boomed on the speculation
that RBI would roll back the recent interest rate hike.

GDP growth rate touched an 18-year peak of 9.4 per cent during 2006-07.

Double digit growth in manufacturing and service sectors. L&T came out with very good
quarterly numbers showing high growth of infrastructure and construction industry.

Offloading of stocks by FIIs was also a reason behind the fall. It was due to the interest
rate hike by the European Central Bank to six year high of 4 per cent.

47
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

Interestingly, Midcap and Small-cap witnessed growth of 0.26 per cent and 1.33 per cent
respectively despite the fall in the Sensex in general.

For the month of July 2007


Date

Open

High

Low

Close

2-Jul-07

14685.1
6

14745.9
7

14638.8
8

14664.26

3-Jul-07

14720

14828.3
9

14720

14806.51

4-Jul-07

14868.1
4

14906.9
3

14790.7
5

14880.24

5-Jul-07

14932.5
3

14963.2
6

14731.2
2

14861.89

6-Jul-07

14843.4
3

15007.2
2

14826.5
6

14964.12

9-Jul-07

15018.7
1

15085.2
2

15005.4
7

15045.73

10-Jul-07

15100.1

15114.9

14966.4

15009.88

48
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

11-Jul-07

14948.1
5

15015.3
5

14829.5
5

14910.62

12-Jul-07

14963.5
3

15112.2
2

14963.5
3

15092.04

13-Jul-07

15216.8
3

15330.7
3

15216.8
3

15272.72

16-Jul-07

15295.0
3

15341.3
8

15239.4
1

15311.22

17-Jul-07

15357.6

15440.2

15272.4
6

15289.82

18-Jul-07

15296.0
6

15325.7
8

15160.2
7

15301.17

19-Jul-07

15357.3
8

15593.3
1

15357.3
8

15550.13

20-Jul-07

15625.6
3

15683.0
3

15524.6
8

15565.55

23-Jul-07

15560.5
7

15773.3
7

15477.9
1

15732.2

24-Jul-07

15802.1
9

15868.8
5

15742.3
2

15794.92

25-Jul-07

15711.8
7

15771.2
6

15572.9
8

15699.33

26-Jul-07

15768.2
8

15812.2
7

15654.4

15776.31

27-Jul-07

15487.7
6

15495.5
1

15159.6
8

15234.57

30-Jul-07

15278.0
3

15451.8
1

15135.2
5

15260.91

31-Jul-07

15358.6
9

15568.8
5

15224.8
2

15550.99

49
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

Analysis
In this month market situation was boomed. In this month market was crossed 15000 points on
6th July and very next day market was opened at above 15000 points. And after that market was
up trend rest of the days. Looking at First fortnight's market movement, the Sensex had gone up
close to 500 points. All time high was 15868 points on 24th July and all time low 14720 points on
very early 2nd July of this month. The last day of the month market was closed at 15550 points
and this indicated that market was boomed period from last three months.

Reasons

The market is likely to remain upbeat, with inflation losing steam and weathermen
putting out a positive monsoon forecast for July.

The market has got a major boost from the strong global indices as well as the huge
inflow of foreign money.

Vishal retail and DLF were listed on the bourses and Vishal hit `800 during the trading
hours.

Dow crossed 14000 gaining more than 300 points. Shanghai Composite and Hang Seng
too went up by 270 and 680 points respectively.

Last fortnight saw huge inflow of FII money aggregating to `9724 crore. If we look at the
year-to-date figure this stands at close to `38000 crore, an indication of the increased
confidence of foreign investors in Indian economy. And they were invested in DLF and
ICICI Bank IPO.

For the month of Aug 2007


50
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

51
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

Analysis
On

very

first

trading

Date

Open

High

Low

Close

1-Aug-07

15344.0
2

15344.0
2

14910.5
2

14935.7
7

2-Aug-07

15022.8
7

15134.5
3

14896.4
7

14985.7

3-Aug-07

15061.1
3

15235.5
1

15061.1
3

15138.4

6-Aug-07

14892.6

14928.8

14705.5
8

14903.0
3

7-Aug-07

15038.0
3

15142.0
4

14901.8
3

14932.7
7

8-Aug-07

15088.0
7

15340.2
4

15088.0
7

15307.9
8

9-Aug-07

15452.4
4

15542.4

15062.1

15100.1
5

10-Aug-07

14674.9
2

14901.3
1

14570.8
9

14868.2
5

13-Aug-07

14965.6
5

15044.7
4

14869.1
5

15017.2
1

14-Aug-07

15066.7
1

15069.6
4

14964.6
6

15000.9
1

16-Aug-07

14584.9
2

14584.9
2

14345.0
3

14358.2
1

17-Aug-07

14309.3
7

14318.5
6

13779.8
8

14141.5
2

20-Aug-07

14512.2
8

14680.0
9

14406.9
1

14427.5
5

21-Aug-07

14512.1
9

14534.5
1

13941.9
3

13989.1
1

22-Aug-07

14055.4

14281.4
8

13870.7

14248.6
6

23-Aug-07

14458.3
3

14554.9
3

14128.7
2

14163.9
8

24-Aug-07

14237.2

14455.4

14163.6

14424.8

day

market opens at
200

points

down.

This

month

market

was

very

volatile

with

1600 to 1800
market
movement.
first

In

fortnight

the market was


volatile 600 to
800 points. But
market

was

crashed 200 to
300 points. BSE
Sensex fell 650
points

on

August

16,

marking

its

second-biggest
plunge

in

history. On the
whole, the last
fortnight saw a
decline of 1000

52
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

points. This months market all time high was 15542 points on 9 th and all time low 13705 points
on 6th. Market created its high and low in first 10 days. Finally end of the month market gave
close 15318 points close 31st Aug. which 200 points low than the last months closing.

Reasons

Japanese yen become strongest and dollar and euro also become strongest. This might
affected in sell out by FIIs in emerging nation including India.

RBI sought to contain the liquidity by increasing the CRR by 50 basis points. Thus Bank
cut its deposit rate.

FIIs pumped more money into the market this time. They remained net buyers to the tune
of ` 1,500 crore.

Ambuja cement offered to buy the share at `154 each.

SBI announced merger with one of the associates State Bank of Saurastra.

For the month of Sep 2007

Date

Open

High

Low

Close

3-Sep-07

15401.99 15427.16 15323.05 15422.05

4-Sep-07

15482.13 15521.48 15389.62

15465.4

5-Sep-07

15535.35 15580.86

15446.15

15407

53
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

6-Sep-07

15383.18 15637.74 15350.18 15616.31

7-Sep-07

15655.37 15716.06 15565.22 15590.42

10-Sep-07

15413.58 15626.28 15363.53 15596.83

11-Sep-07

15668.4

15698.98

12-Sep-07

15608.5

15661.44 15486.81 15505.36

13-Sep-07

15547.66 15650.14 15547.66 15614.44

14-Sep-07

15713.66 15824.65 15568.36

17-Sep-07

15664.74 15726.06 15467.46 15504.43

18-Sep-07

15547.07 15691.88

15468.8

19-Sep-07

15940.79

15940.79 16322.75

20-Sep-07

16341.55 16415.88 16261.36 16347.95

21-Sep-07

16352.32 16616.84 16308.09 16564.23

24-Sep-07

16697.89 16869.64 16599.66 16845.83

25-Sep-07

16890.75 16928.02 16676.98 16899.54

26-Sep-07

16969.45 17073.87 16887.07 16921.39

27-Sep-07

17059.61

28-Sep-07

17152.31 17361.47 17152.31

16335.3

17188.4

15506.1

15542.77

15603.8

15669.12

17018.56 17150.56
17291.1

Analysis
In this month market was gave good return to the investors. Sensex again reached near to its
highest point on September 7. This month market movement was above 2000 points. In this
month market crossed 16000 points on 19th Sep. and 17000 on 27th Sep. Points. After 18th Sep.
market continuously up rally by each day. Sep. 2007, market created its all time high 17361
points on last trading day of the month 28th Sep. and all time low 15323 points on very first
trading day of the month.

54
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

Reasons

Sensex gained 100 points as the power counters like NTPC and BHEL moved up before
the Power Grid IPO\

Auto moved up just a per cent while bankex and capital goods have grown by two per
cent each. IT slipped again by three per cent as the Rupee has become stronger.

For the month of Oct 2007

Date

Open

High

Low

Close

1-Oct-07

17356.9
9

17425.3
4

17144.5
8

17328.62

3-Oct-07

17467.4
1

17953.0
7

17288.4
1

17847.04

4-Oct-07

17799.6
3

17890.4
9

17494.7

17777.14

55
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

5-Oct-07

17831.6
8

17979.1
8

17708.8

17773.36

8-Oct-07

17901.9
4

17982.5
9

17322.1
4

17491.39

9-Oct-07

17402.2
4

18327.4
2

17287.1
9

18280.24

10-Oct-07

18473.4
3

18703.6
7

18436.9
9

18658.25

11-Oct-07

18696.6
2

18832.6
5

18536.9
7

18814.07

12-Oct-07

18794.6
3

18844.6
2

18336

18419.04

15-Oct-07

18525.6
1

19095.7
5

18525.6
1

19058.67

16-Oct-07

19102.9
3

19174.4
5

18777.7
5

19051.86

17-Oct-07

18037.9

18841.2
9

17307.9

18715.82

18-Oct-07

18827.4
6

19198.6
6

17771.1
6

17998.39

19-Oct-07

18031.7
7

18031.7
7

17226.1
8

17559.98

22-Oct-07

17259.6
5

17704.8
3

17171.4
5

17613.99

23-Oct-07

17910.3

18542.4
1

17910.3

18492.84

24-Oct-07

18727.9

18832.4
9

18317.1
7

18512.91

25-Oct-07

18519.2
3

18900.1

18459.5
1

18770.89

26-Oct-07

18823.6
6

19276.4
5

18629.5
3

19243.17

29-Oct-07

19621.3

20024.8

19621.3

19977.67
56

Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

30-Oct-07

20103.4
4

20238.1
6

19694.8
5

19783.51

31-Oct-07

19827.4

19984.1
3

19735.2
1

19837.99

Analysis
In October, Sensex was all time high in history. Sensex crossed 18,000, 19000, and 20000 on 9th,
15th and 29th October respectively. In this month market movement was 3000 points. Market
created its all time low at 17,171 ON 22nd Oct. and all time high 20,238 on 30th Oct. This month
market closed at 19837 points on 31st Oct. which was indicated gained of 2000 points than the
last month.

Reasons

Diwali festival

Second quarter result

Buying presser of FIIs

57
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

For the month of Nov 2007

Date

Open

High

Low

Close

1-Nov-07

20130.23 20204.21 19634.47 19724.35

2-Nov-07

19364.61 20025.63 19255.77 19976.23

5-Nov-07

20009.35 20009.35 19502.45 19590.78

6-Nov-07

19689.79 19919.34 19337.85 19400.67

7-Nov-07

19552.53

19678.5

19249.47 19289.83

8-Nov-07

19110.4

19209.91

18917.4

19058.93

9-Nov-07

19282.7

19329.57 18737.22

18907.6

12-Nov-07

18640.52 18815.11 18333.21 18737.27

13-Nov-07

18681.1

14-Nov-07

19336.96 19987.71 19336.96 19929.06

15-Nov-07

19947.72 19967.08

16-Nov-07

19603.09 19838.03 19472.51 19698.36

19-Nov-07

19895.49 19971.44 19583.97 19633.36

20-Nov-07

19510.94 19714.22 19196.42

19280.8

21-Nov-07

19197.57 19218.88

18602.62

22-Nov-07

18724.11 18744.55 18182.83 18526.32

23-Nov-07

18737.22 18910.46 18548.06 18852.87

19210.48 18636.21 19035.48

19723.2

18515.3

19784.89

58
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

26-Nov-07

19171.25 19360.23 19137.66 19247.54

27-Nov-07

19128.86 19211.58 19019.33 19127.73

28-Nov-07

19316.76 19316.76

29-Nov-07

19290.67 19297.01 18930.31 19003.26

30-Nov-07

19136.12 19424.99 19006.89 19363.19

18884.2

18938.87

Analysis
In this month on first day market was opened at 300 points up than the last month of the day. On
that day market created all time high 20,204 points. Market movement was 2000 points. First
fortnight market fell 1500 points than is was recovered day to day and closed at 19,363 on 30th
Nov. Over all this month market was stable.

Reasons

RBI hiked the CRR by 50 basis points to 7.5 per cent.

On first fortnight major foreign market indices was fell around 4 per cent

FIIs roll as medium phase

High FIIs buying presser

59
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

For the month of Dec 2007

Date

Open

High

Low

Close

3-Dec-07

19547.0
9

19619.4
4

19446.6
8

19603.41

4-Dec-07

19707.5
9

19707.8
6

19482.3
4

19529.5

5-Dec-07

19628.8
5

19790.9
2

19560.6
8

19738.07

6-Dec-07

20018.1
7

20064.3
1

19716.5
7

19795.87

7-Dec-07

20063.5

20094.5
6

19706.4
3

19966

10-Dec-07

20074.9
2

20095.6
9

19834.0
1

19930.68

11-Dec-07

20049.3
5

20333.0
6

20019.3
4

20290.89

12-Dec-07

20197.4
4

20419.1
1

20045.4
2

20375.87

13-Dec-07

20498.1
1

20498.1
1

20065.6
3

20104.39

14-Dec-07

20108.0
9

20171.5
7

19936.4
9

20030.83

17-Dec-07

20032.6

20032.6

19177.1

19261.35

60
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

18-Dec-07

19339.1
4

19375.0
7

19009.3
5

19079.64

19-Dec-07

19255.3
9

19397.7
6

18886.4

19091.96

20-Dec-07

19210.2
2

19291.1
4

19097.7

19162.57

24-Dec-07

19308.2

19879

19308.2

19854.12

26-Dec-07

19940.9
6

20211.4
7

19896.6
1

20192.52

27-Dec-07

20301.0
5

20323.7
6

20159.7
3

20216.72

28-Dec-07

20158.1
2

20259.4
5

20022.8
8

20206.95

31-Dec-07

20323.2
8

20484.2
8

20239.6
3

20286.99

Analysis
In this month market was bouncing again. In first fortnight market was in an unbeaten mood.
Sensex crossed 20,000 points after one month. In this month market made all time low at 18,886
points on 19th Dec. and peak points at 20,498 on 13th Dec. On last day of the market closed at
20,286 points.

Reason

Crude oil has already surpassed USD 100 per barrel.

No more impact of foreign market

FIIs medium buying and selling

61
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

For the month of Jan 2008

Date

Open

High

Low

Close

2-Jan-08

20393.1

20529.4
8

20077.4

20465.3

3-Jan-08

20383.0
3

20519.7

20293.8
7

20345.2

4-Jan-08

20367.9
4

20762.8

20367.9
4

20686.8
9

7-Jan-08

20637.2
1

20861.8
3

20438.1
9

20812.6
5

8-Jan-08

20970.0
7

21077.5
3

20696.6

20873.3
3

9-Jan-08

20903

21113.1

20701.4

20869.7
62

Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

10-Jan-08

20930.2
8

21206.7
7

20530.0
7

20582.0
8

11-Jan-08

20702.9
4

20894.7
9

20505.8
1

20827.4
5

14-Jan-08

20918.2
3

20959.2
2

20661.9

20728.0
5

15-Jan-08

20836.4
7

20872.9
3

20203.6
3

20251.0
9

16-Jan-08

20079.8
9

20079.8
9

19513.2
5

19868.1
1

17-Jan-08

19972.7
5

20026.1
2

19643.7
6

19700.8
2

18-Jan-08

19579.6
1

19715.7
8

18930.4
2

19013.7

21-Jan-08

18919.5
7

18919.5
7

16951.5

17605.3
5

22-Jan-08

16884.0
9

17068.5
7

15332.4
2

16729.9
4

23-Jan-08

17520.0
2

17997.1
1

16951.0
3

17594.0
7

24-Jan-08

17920.9
8

18185.1

17070.0
5

17221.7
4

25-Jan-08

17504

18406.2
5

17504

18361.6
6

28-Jan-08

18011.8
9

18213.2
1

17443.2
9

18152.7
8

29-Jan-08

18346.4
9

18491.0
6

17927.9
2

18091.9
4

30-Jan-08

18120.2
2

18129.1
8

17683.5
1

17758.6
4

31-Jan-08

17810.1
3

18008.7
1

17417.6
3

17648.7
1
63

Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

Analysis
In the month of January Sensex open at 20,393 and make high of 20,959 on 14th Jan and low of
15,332. In third week the market was quite unusual volatile. The sharp and rapid rise in small
and mid cap shares. The difference between opening and closing was -5627. The main reason
behind this fall was subprime in the USA and The impact of these market development were so
severe that on January 15 and 16 Sensex lost almost 860 points on negative global cues. The
effect of subprime was more palpably evident on global market and across Asia. The
whole of January 2008 was dedicated to concerns of

US recession and meltdown in the

world markets.
Reasons

The main reason behind the fall was subprime in the USA

In spite of good result of IT company market not sustain on top.

Poor listing of Reliance power.

64
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

For the month of Feb 2008


Date

Open

High

Low

Close

1-Feb-08

17820.6
7

18312.4

17534.9
6

18242.58

4-Feb-08

18496.0
3

18895.3
4

18447.2
5

18660.32

5-Feb-08

18592.5
8

18729.8
3

18509.5
4

18663.16

6-Feb-08

18247.0
3

18274.1
5

17936.0
1

18139.49

7-Feb-08

18198.6
8

18198.6
8

17492.2
8

17526.93

8-Feb-08

17610.0
7

17688.7
3

17203.0
6

17464.89

11-Feb-08

17427.3
4

17427.3
4

16457.7
4

16630.91

12-Feb-08

16812.6
3

16966.7
2

16565.4
8

16608.01

13-Feb-08

16816.9
4

17141.0
6

16725.6
8

16949.14

14-Feb-08

17265.1
9

17836.6
4

17265.1
9

17766.63

15-Feb-08

17541.1
7

18142.9
2

17445.0
5

18115.25

19-Feb-08

18215.2
6

18314.1

18018.4
8

18075.66

20-Feb-08

17991.2
9

17991.2
9

17505.5
6

17617.6

21-Feb-08

17825.2
2

17887.2
1

17482.3
1

17734.68

65
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

22-Feb-08

17503.0
4

17526.8

17347.2
6

17349.07

25-Feb-08

17523.8
1

17674.0
6

17137.9
9

17650.57

26-Feb-08

17799.5
6

17860.1

17678.7
4

17806.19

27-Feb-08

17983.4
2

18137.2
8

17770.6
5

17825.99

28-Feb-08

17810.5
2

17921.5
1

17690.1
6

17824.48

29-Feb-08

17779.5
4

17779.5
4

17258.2

17578.72

Analysis
Sensex opened at 17,820 on 1st February and make high of 18,895 on 4 th February.With
making a low of 16,457 on 11 February Sensex close at 17,578 at the end of month.

Reasons

The blow of Industrial growth data that its only 7.6 per cent compare to last year 13.6 per
cent its 43 per cent beaten.

Poor listing of Reliance power on 11 February drag Sensex to its lowest point. Its listed
on BSE at `548 and fall `131 in just 3 hour. And next make the low of `345.

All world market crashing down. The worst hit was Hong Kongs Hang Seng which
dropped 2110 point, to reach 22,921

Net sellings from MFs FIIs

66
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

For the month of March 2008

Date

Open

High

Low

Close

3-Mar-08

17227.5
6

17227.5
6

16634.6
3

16677.8
8

4-Mar-08

16742.2

16754.0
6

16164.5
7

16339.8
9

5-Mar-08

16328.9
1

16595.6
4

16253.0
2

16542.0
8

7-Mar-08

16211.9
6

16211.9
6

15689.9
2

15975.5
2

10-Mar-08

15684.2
4

15998.3
3

15362.1
7

15923.7
2

11-Mar-08

15778.2
7

16168.1
3

15739.0
4

16123.1
5

12-Mar-08

16541.1
4

16683.3
7

16064.0
9

16127.9
8
67

Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

13-Mar-08

15873.2
8

15873.2
8

15228.9
9

15357.3
5

14-Mar-08

15467.3
9

15798.4
2

15331.3
5

15760.5
2

17-Mar-08

15326.9
3

15326.9
3

14739.7
2

14809.4
9

18-Mar-08

14725.6
8

15164.7
3

14677.2
4

14833.4
6

19-Mar-08

15325.7
9

15465.8
1

14930.0
8

14994.8
3

24-Mar-08

15093.7
7

15351.3
1

15056.0
9

15289.4

25-Mar-08

15612.6
1

16262.3
8

15612.6
1

16217.4
9

26-Mar-08

16270.1
2

16309.8
8

16009.8
7

16086.8
3

27-Mar-08

15950.2
9

16111.4
4

15869.0
9

16015.5
6

28-Mar-08

16100.2
6

16452.0
8

15884.4
5

16371.2
9

31-Mar-08

16226.6
6

16226.6
6

15563.1
5

15644.4
4

Analysis
In the month of March Sensex open at 17,227 and that point only was the high for the month of
March. Sensex was moving on expected lines. The low was 14,677 which was made on 18 th
March. On the 25th march Sensex shown the rally of 928 in upward direction. And close in the
negative sentiment after recovering 967 points from low at 15,644.

Reasons
68
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

First week of March after P.Chidambram unveiled the pro-people Budget of


the UPA government.

Poor Index of industrial production (IIP) numbers bruised the market on 12th march

Finance minister announced `60,000 crores agriculture loan waiver.

The FIIs inflow till march 25th was `889 crore and alone FIIs have done purchasing of
`1345 crores that was resulted in rally of 928 points on 25th March.

Global markets were in positive direction including US at the end of the month.

For the month of April 2008

Date

Open

High

Low

Close

1-Apr-08

15771.72 15834.05 15297.96 15626.62

2-Apr-08

16023.3

3-Apr-08

15805.63 16002.73 15699.21 15832.55

4-Apr-08

15896.09 15896.09 15303.04 15343.12

16236.7

15719.47

15750.4

69
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

7-Apr-08

15390.15 15851.88 15321.56 15757.08

8-Apr-08

15770.16

15770.4

9-Apr-08

15512.7

15829.59 15464.72 15790.51

10-Apr-08

15754.87 15953.54

11-Apr-08

15840.56 15957.24 15673.67 15807.64

15-Apr-08

15694.41 16249.46 15573.03 16153.66

16-Apr-08

16288.76

17-Apr-08

16456.04 16570.57 16397.17

21-Apr-08

16611.41 16778.59 16611.41 16739.33

22-Apr-08

16686.55 16853.96 16597.53 16783.87

23-Apr-08

16823.99 16871.27 16589.45 16698.04

24-Apr-08

16796.26 16844.02

25-Apr-08

16781.97 17150.92 16781.97 17125.98

28-Apr-08

17251.56 17271.56 16978.89 17015.96

29-Apr-08

17050.87 17424.94

30-Apr-08

17479.01 17480.74 17241.88 17287.31

16413.8

15479.42 15587.62

15655.2

15695.1

16198.56 16244.19

16668.6

17011.6

16481.2

16721.08

17378.46

Analysis
In month April Sensex start with opening of 15,771 with gap up opening of 127 point .
Sensex make high of 17,480 on 30th April and make low of 15,297 on the first itself and close at
17,287. The Indian markets now seem to be responding more on the basis of the pros and corns
of Indian economy rather than being lead by global cues.

Reasons

70
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

On 18th April Citi group had announced the loss of $5.1 billion although market open in
plus 258 points.

On 23rd April Good result given by Indian Inc in the third quarter. RIL the biggest
corporate player had registered profit of `3912 crore, It was 24 per cent more than last
years Q4 result.

Internationally it seems that markets all over had discounted the fear of US economic
slowdown and financial crisis. All the global indices showing appreciation from the past
levels.

For the month of May 2008

Date

Open

High

Low

Close

2-May-08

17560.15

17621.24

17445.93

17600.12

5-May-08

17687

17735.7

17457.27

17490.9

6-May-08

17441.41

17502.15

17237.68

17373.01

7-May-08

17404.15

17413.81

17229.98

17339.31

71
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

8-May-08

17212.61

17212.61

17038.03

17080.65

9-May-08

17020.79

17125.95

16678.94

16737.07

12-May-08

16641.45

16897.36

16546.55

16860.9

13-May-08

17008.03

17085.63

16697.47

16752.86

14-May-08

16691.3

17014.94

16626.35

16978.35

15-May-08

17084.89

17366.19

17079.94

17353.54

16-May-08

17476.41

17497.36

17315.52

17434.94

20-May-08

17366.05

17367.13

17136.26

17230.18

21-May-08

17065.61

17293.34

17041.63

17243.16

22-May-08

17104.59

17104.59

16863.38

16907.11

23-May-08

16958.8

17054.34

16626.11

16649.64

26-May-08

16468.32

16498.24

16300.88

16348.5

27-May-08

16454.75

16506.35

16237.92

16275.59

28-May-08

16358.62

16563.3

16217.78

16525.37

29-May-08

16666.03

16666.03

16196.02

16316.26

30-May-08

16454.03

16540.49

16314.99

16415.57

Analysis
Month of May started with 17,560. Its gap up opening of 273 points. On 5 th may Sensex
make high of 17,735 and low of 16,196 on the 29th May. The closing of this month was settled on
16,415.Market close negatively in the month of May. The difference was 1145 point between
opening and closing
Reasons

On 19th May crude oil touch the level of $127 per barrel. The historic high value.
72
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

Inflation increased more than 8 per cent. After September 2004 its highest level.

The debacle of UPA government in Karnataka assembly election.

For the month of June 2008

Date

Open

High

Low

Close

2-Jun-08

16591.46 16632.72 15991.21 16063.18

3-Jun-08

15851.72

15985.4

15709.51 15962.56

4-Jun-08

15992.9

15992.9

15442.34 15514.79

5-Jun-08

15479.65

15814.8

15314.02 15769.72

6-Jun-08

15914.41

15970.7

15526.5

15572.18

73
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

9-Jun-08

15115.97 15202.74 14846.18

10-Jun-08

14979.96 15088.03 14645.31 14889.25

11-Jun-08

15018.68 15225.81 15009.48 15185.32

12-Jun-08

14957.53 15270.85 14748.07

13-Jun-08

15327.1

16-Jun-08

15400.57 15553.37 15340.34 15395.82

17-Jun-08

15388.36 15732.75 15358.75

18-Jun-08

15744.21 15789.62 15390.22 15422.31

19-Jun-08

15250.47 15259.36 15051.66 15087.99

20-Jun-08

15194.73 15194.73 14520.88 14571.29

23-Jun-08

14423.05 14509.69 14163.45 14293.32

24-Jun-08

14290.16

25-Jun-08

13776.21 14247.16 13736.01 14220.07

26-Jun-08

14300.72 14449.81 14196.68 14421.82

27-Jun-08

14127.76 14127.76 13760.78 13802.22

30-Jun-08

13791.02 13872.06 13405.54

15337.1

14432.9

15066.1

15250.2

15135.81 15189.62

15696.9

13991.31 14106.58

13461.6

Analysis
In the month of june Sensex opened at 16,591 make high of 16,632 on the same day. With
making low of 13,405 on last day Sensex close at 13,461.

Reasons

Major factor domestic and international are crude oil, inflation and intrest rate.

The news of

Ranbaxys acquisition with Japanese based firm Daiichi Sankyo. This

acquired majority of the voting capital of Ranbaxy.

Payment of advance tax higher compare to last quarter.


74
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

For the month of July 2008

Date

Open

High

Low

Close

1-Jul-08

13480.02 13613.01 12904.09 12961.68

2-Jul-08

12948.05 13711.01 12822.75 13664.62

3-Jul-08

13458.3

4-Jul-08

13097.01 13508.38 13031.43

7-Jul-08

13561.92 13793.39 13476.29 13525.99

8-Jul-08

13226.04 13451.67 13049.96 13349.65

9-Jul-08

13581.41 13998.48 13581.41 13964.26

10-Jul-08

13851.59 14046.59 13763.94 13926.24

13458.3

12934.92 13094.11
13454

75
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

11-Jul-08

14063.45 14063.45 13351.34 13469.85

14-Jul-08

13333.03 13557.21

15-Jul-08

13067.08 13067.08 12607.62 12676.19

16-Jul-08

12759.76 12935.25 12514.99

17-Jul-08

12909.57 13150.35 12843.79 13111.85

18-Jul-08

13234.53 13684.27 13093.34

21-Jul-08

13782.13 13878.88 13581.19 13850.04

22-Jul-08

13837.64 14206.13 13798.18

23-Jul-08

14568.22

24-Jul-08

15082.37 15130.09 14608.05 14777.01

25-Jul-08

14451.95 14484.39 14210.63 14274.94

28-Jul-08

14267.03 14421.61 14219.38 14349.11

29-Jul-08

14085.53 14153.12 13727.14 13791.54

30-Jul-08

14007.32 14322.67 14002.19 14287.21

31-Jul-08

14359.48 14369.42 14161.76 14355.75

14979.9

13270.4

13330.51

12575.8

13635.4

14104.2

14568.22 14942.28

Analysis
The month of July start with opening at 13480 with nominal plus moment and make the
peak of 14,979 on 16 July. 12,514 was the low and closing was 14,355

Reasons

Devastating crude price in the international market.

Unending inflation spiral.

Threat of fall of UPA government over the nuclear issue.


76
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

For the month of Aug 2008

Date

Open

High

Low

Close

1-Aug-08

14064.2
6

14682.3
3

14032.8
7

14656.69

4-Aug-08

14594.6
4

14725.9
4

14503.5
1

14577.87

5-Aug-08

14562.6
8

14986.6
3

14529.2
1

14961.07

6-Aug-08

15263.6
5

15422.8
2

15035.6

15073.54

77
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

7-Aug-08

15031.8
6

15280.0
6

14992.9
7

15117.25

8-Aug-08

15036.5
7

15228.8
2

14888.1
2

15167.82

11-Aug-08

15430.3
1

15520.7
1

15367.9
7

15503.92

12-Aug-08

15577.2

15579.7
8

15124.9
1

15212.13

13-Aug-08

15030.2
1

15272.5
6

15013.0
6

15093.12

14-Aug-08

15017.6
8

15033.2
8

14686.6
6

14724.18

18-Aug-08

14681.1
4

14824.9
2

14600.6
5

14645.66

19-Aug-08

14517.7
6

14604.1
1

14368.7
2

14543.73

20-Aug-08

14610.5
7

14746.2

14584.0
3

14678.23

21-Aug-08

14646.9
8

14646.9
8

14201.1
8

14243.73

22-Aug-08

14153.3
9

14428.5
2

14136.8
6

14401.49

25-Aug-08

14643.3
7

14672.6
9

14416.2

14450.35

26-Aug-08

14338.2
7

14495.2
7

14286.3
8

14482.22

27-Aug-08

14563.1

14563.1

14261.6
9

14296.79

28-Aug-08

14289.9
7

14347.1
9

14002.4
3

14048.34

29-Aug-08

14279.0
2

14586.1
6

14279.0
2

14564.53

78
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

Analysis
In th month of august Sensex opened at 14,064 and make high of 15,579 on 12th August.
With making low of 14,002 on 28th August and close at 14,564 on last day. Till th 12 th august
market was gaining, but as the IIP numbers declared market crashed 291 points. Till the 11
August there was not a single day for crash.

Reasons

The vote of confidence in the Lok Sabha turned out in bull rally.

Decrease of crude oil prices.

Poor IIP numbers.

Negative closing from world market (South Korea ,UK , US ,Germany, Japan,
Singapore)

For the month of Sep 2008


79
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

Date

Open

High

Low

Close

14281.1

14498.51

1-Sep-08

14412.99 14547.41

2-Sep-08

14609.44 15106.15 14543.21 15049.86

4-Sep-08

14895.85 14994.15 14766.01

5-Sep-08

14569.01 14601.39 14438.59 14483.83

8-Sep-08

15038.06 15107.01 14917.06 14944.97

9-Sep-08

14814.33 14998.32 14714.92 14900.76

10-Sep-08

14717.53 14866.32 14609.83 14662.61

11-Sep-08

14557.33 14557.33 14265.38 14324.29

12-Sep-08

14433.2

15-Sep-08

13592.05 13592.05 13150.81 13531.27

16-Sep-08

13051.73 13556.03 13051.73

13518.8

17-Sep-08

13620.74 13620.74 13127.96

13262.9

18-Sep-08

12712.82 13346.79 12558.14

13315.6

19-Sep-08

13763.83 14097.44 13674.96 14042.32

22-Sep-08

14215.33 14215.33 13917.48 13994.96

23-Sep-08

13721.42 13978.26 13543.47 13570.31

24-Sep-08

13636.71 13840.81 13592.79 13692.52

25-Sep-08

13716.88 13716.88 13430.68 13547.18

26-Sep-08

13486.2

29-Sep-08

13109.96 13109.96 12402.84 12595.75

30-Sep-08

12178.18

14433.2

13486.2

12995.2

14899.1

13933.87 14000.81

13054.42 13102.18

12153.55 12860.43

Analysis

80
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

September opening was 14,412 and make high of 15,107 on 8th September. Low of this
month was 12,153 on last day of the month and closed at 12,860. Sensex had lost 282 points till
10 September. In this month market was so much volatile. Due to nod of NSG on Nuclear deal
and decline in crude price make the Sensex to touch 15,107. Bankruptcy of heavy weights and
154 year old bank of US make the Sensex crashed very rapidly and Sensex toch the bottom of
12,153

Reasons

Decline in crude price.

Nod of NSG towards Nuclear deal.

Bankruptcy of Lehman Brothers, Merrill lynch, goldman sachs, Morgan Stanley.

For the month of Oct 2008

81
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

Date

Open

High

Low

Close

12697.3

13055.67

1-Oct-08

13006.72 13203.86

3-Oct-08

12851.47 13001.19 12472.61 12526.32

6-Oct-08

12284.49 12284.49 11732.97

7-Oct-08

12068.11 12181.08 11501.85 11695.24

8-Oct-08

11316.24 11405.73 10740.76 11328.36

10-Oct-08

10632.27 10904.13 10239.76 10527.85

13-Oct-08

10817.68 11361.32 10817.68 11309.09

14-Oct-08

11781.43 11870.22 11410.49

15-Oct-08

11245.27 11257.15 10760.33 10809.12

16-Oct-08

10221.53

10787.2

10017.8

10581.49

17-Oct-08

10763.34 10786.93

9911.32

9975.35

20-Oct-08

10160.47 10538.05 10023.28 10223.09

21-Oct-08

10428.11

22-Oct-08

10455.23 10484.85 10128.22

10169.9

23-Oct-08

9683.26

10260.55

9682.4

9771.7

24-Oct-08

9497.48

9570.71

8566.82

8701.07

27-Oct-08

8588.86

8739.48

7697.39

8509.56

28-Oct-08

9056.97

9056.97

8909.34

9008.08

29-Oct-08

9297.76

9297.76

8894.34

9044.51

31-Oct-08

9361.66

9870.42

9361.66

9788.06

10750.2

11801.7

11483.4

10250.23 10683.39

Analysis

82
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

Sensex opened at 13,006 make high of 13,203 on opening day and make low of 7,697 on
27th October. And close at 9788. This month all markets decline sharply. RBI had cut the CRR
and REPO rate but that not affect the market. The biggest factor is only that the financial crisis in
US and European country. Global crisis lead the all index make crashed.

Reasons

Financial crisis in US and European country.

Market recovered because of cut in CRR and repos and PMs assurance to the
corporate world.

For the month of Nov 2008

83
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

Date

Open

High

Low

Close

3-Nov-08

10209.37 10373.17 10112.66 10337.68

4-Nov-08

10304.57 10668.48 10116.22 10631.12

5-Nov-08

10931.17 10945.41 10051.52 10120.01

6-Nov-08

9755.03

10109.45

9635.22

9734.22

7-Nov-08

9631.59

10065.37

9631.59

9964.29

10-Nov-08

10154.56 10570.58

10095.9

10536.16

11-Nov-08

10386.45 10397.36

9800.67

9839.69

12-Nov-08

9683.75

9928.6

9376.73

9536.33

14-Nov-08

9784.85

9826.25

9267.49

9385.42

17-Nov-08

9396.93

9424.25

8956.68

9291.01

18-Nov-08

9084.12

9169.05

8871.71

8937.2

19-Nov-08

8970.67

9236.27

8726.8

8773.78

20-Nov-08

8400.88

8540.46

8316.39

8451.01

21-Nov-08

8481.02

8988.03

8442.31

8915.21

24-Nov-08

8840.53

9042.02

8701.93

8903.12

25-Nov-08

9170.28

9182.8

8649.4

8695.53

26-Nov-08

8806.02

9061.72

8658.53

9026.72

28-Nov-08

8889.18

9157.62

8889.18

9092.72

Analysis

84
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

In the month of November Sensex opened at 10,209 its gap up high opening Sensex open
at plus 421 point. Sensex make the high of 10,945 on 5th November. And than onceagain sleep
to 8316 on 20th November.And closed at 9092.

Reasons

Sensex gained 1157 point till 5th November, because Commerce and Industry
Minister Kamal Nath announced after trading hours on 3 November that the
government will further ease foreign investment rules, including those relating to
defence production.

After the announcement of election of Barak Obama in US, Sensex fall down
very sharply because of heavy selling of FIIs.

On account of global slow down

Terrorist Attack on Mumbai Taj Hotel.

US had official accept the recession in their economy.

For the month of Dec 2008

85
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

Date

Open

High

Low

Close

1-Dec-08

9162.94

9326.68

8803.34

8839.87

2-Dec-08

8535.83

8785.04

8467.43

8739.24

3-Dec-08

8851.22

8854.81

8601.41

8747.43

4-Dec-08

8779.02

9245.06

8726.71

9229.75

5-Dec-08

9172.58

9340.69

8914.38

8965.2

8-Dec-08

9276.89

9432.11

9095.7

9162.62

10-Dec-08

9349.53

9678.7

9280.16

9654.9

11-Dec-08

9679.32

9746.01

9441.97

9645.46

12-Dec-08

9370.87

9745.51

9281.89

9690.07

15-Dec-08

9821.85

9948.33

9749.29

9832.39

16-Dec-08

9794.48

10009.21 9790.31

9976.98

17-Dec-08

10073.1

10073.1

9715.29

18-Dec-08

9710.2

10110.34 9633.04 10076.43

9682.91

19-Dec-08

10001.33 10188.54 9987.42 10099.91

22-Dec-08

10102.42 10173.34 9895.55

9928.35

23-Dec-08

9813.2

9838.38

9643.56

9686.75

24-Dec-08

9626.07

9653.42

9502.53

9568.72

26-Dec-08

9655.07

9706.38

9294.98

9328.92

29-Dec-08

9318.86

9550.4

9162.66

9533.52

30-Dec-08

9625.13

9785.04

9494.7

9716.16

31-Dec-08

9806.64

9825.9

9587.92

9647.31

Analysis

86
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

Sensex opened at 9,162 and make high of 10,188 and make the low of 8,467. The
closing was settled at 9647. Sensex fall in first week because of their decline in export. Sensex
cross 10,000 because of stimulus package announced by government on December 16th.

Reasons

Sharp decline of 12.1per cent in the export.

Stimulus Package Propels Market Past 10,000 Mark.

US government had announced $1 trillion bailout package.

For the month of Jan 2009

87
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

Date

Open

High

Low

Close

2-Jan-09

9973.06

10070.28

9863.86

9958.22

5-Jan-09

10124.92 10306.17 10069.11

10275.6

6-Jan-09

10241.51 10392.12 10150.68 10335.93

7-Jan-09

10424.96 10469.72

9510.15

9586.88

9-Jan-09

9434.85

9630.4

9250.82

9406.47

12-Jan-09

9306.74

9327.3

9024.45

9110.05

13-Jan-09

9042.36

9261

8992.92

9071.36

14-Jan-09

9223.16

9412.97

9071.36

9370.49

15-Jan-09

9000.62

9123.78

8946.62

9046.74

16-Jan-09

9125.65

9342.47

9125.65

9323.59

19-Jan-09

9365.04

9409.51

9273.47

9329.57

20-Jan-09

9159.76

9159.76

9033.55

9100.55

21-Jan-09

8900.78

9051.31

8734.93

8779.17

22-Jan-09

8905.97

8927.69

8699.32

8813.84

23-Jan-09

8804.15

8858.84

8631.6

8674.35

27-Jan-09

8803.07

9021.97

8791.58

9004.08

28-Jan-09

9077.65

9270.75

9053.8

9257.47

29-Jan-09

9340.59

9379.68

9164.96

9236.28

30-Jan-09

9111.12

9438.31

9088.15

9424.24

Analysis
In January 2009, market opened on 300 points at 2nd Jan. than the last year last trading
day. In this month market was volatile 1600 to 2000 points. In first fortnight opened robust at
88
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

9973 points on January 1st and went up to 10469 points on January 7, highest points in last 15
days. But on that day market lost 749 points and then went on declining to tough their lowest
level of 8992 points on January 13. In second fortnight there were good sentiments after 1500
points crashed in first fortnight. In last week market was bullish and gave close at 9424 points.

Reasons

Satyam Scandal (Fraud)

Major foreign markets were down 1 to 5 per cent

RBI announced its credit policy on Jan. 27th & full stop on decline

For the month of Feb 2009

Date

Open

High

Low

Close

2-Feb-09

9363.58

9363.58

9048.97

9066.7

89
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

3-Feb-09

9128.99

9302.25

9040.56

9149.3

4-Feb-09

9226.2

9338.21

9164.16

9201.85

5-Feb-09

9241.56

9247.09

9017.08

9090.88

6-Feb-09

9161.49

9321.38

9160.83

9300.86

9-Feb-09

9359

9601.56

9329.3

9583.89

10-Feb-09

9589.95

9724.87

9510.63

9647.47

11-Feb-09

9462.14

9648.39

9459.59

9618.54

12-Feb-09

9559.03

9578.99

9445.54

9465.83

13-Feb-09

9540.6

9695.59

9540.6

9634.74

16-Feb-09

9637.04

9637.04

9279.1

9305.45

17-Feb-09

9213.4

9213.4

8994.34

9035

18-Feb-09

8939.38

9112.99

8929.62

9015.18

19-Feb-09

9034.9

9111.27

8977.8

9042.63

20-Feb-09

8943.78

8943.78

8762.58

8843.21

24-Feb-09

8707.35

8856.52

8619.22

8822.06

25-Feb-09

8913.44

8995.04

8880.15

8902.56

26-Feb-09

8905.56

8998.31

8788.94

8954.86

27-Feb-09

8944.11

8944.11

8728.66

8891.61

Analysis
Market opened bearish on first day than the last trading day of last month. In this month
market movement was near about 600 to 700 points. Sensex touched a last fortnight peak on
February 10 at 9724 points gaining 313 points last 15 days. In second fortnight the market was
on a continuous downslide on global cues and failed to show any revival indicators. And the
market closed at 8891 points on 27th Feb.
90
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

Reasons

Central Statistical Organization release advance estimates of the Indian GDP for 2008-09
which showed the countys growth intact at 7.1 per cent.

FII positive purchased of `172 cr. during first 15 days.

Budget had negative impact on the market on last fortnight.

For the month of March 2009

Date

Open

High

Low

Close

2-Mar-09

8762.88

8762.88

8563.52

8607.08

3-Mar-09

8583.06

8635.2

8393.05

8427.29

4-Mar-09

8473.25

8501.46

8373.24

8446.49
91

Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

5-Mar-09

8535.03

8535.03

8167.75

8197.92

6-Mar-09

8103.75

8347.1

8047.17

8325.82

9-Mar-09

8259.22

8259.22

8110.1

8160.4

12-Mar-09

8274.78

8439.26

8274.78

8343.75

13-Mar-09

8480.74

8793.21

8480.74

8756.61

16-Mar-09

8793.89

8955.73

8697.46

8943.54

17-Mar-09

8942.01

9024.12

8801.79

8863.82

18-Mar-09

8956.3

9120.4

8951.32

8976.68

19-Mar-09

9023.04

9086.77

8900.39

9001.75

20-Mar-09

8951.34

8999.98

8867.13

8966.68

23-Mar-09

9040.3

9454.69

9040.3

9424.02

24-Mar-09

9549.52

9699

9402.64

9471.04

25-Mar-09

9442.3

9704.69

9430.45

9667.9

26-Mar-09

9739.93

10061.36

9739.93

10003.1

27-Mar-09

10036.8

10127.09

9913.4

10048.49

30-Mar-09

9902.35

9902.35

9521.76

9568.14

31-Mar-09

9633.21

9826.22

9547.21

9708.5

Analysis
In this march market was on recovery mood. In this month market crossed 10000 points.
In first fortnight market was bearish situation. Market made its all time high at 10127 points on
27th march and all time low at 8047 on 6th march. Last fortnight market was continuously bullish
trend. On 31st march market closed at 9708 points which was 1000 high than the last month
closing.

Reasons

92
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

FII sold shares worth of

2696 Cr. and they were not a single purchased during first

fortnight

Major foreign indices was declined in first fortnight (Dow 8.8%, Hang seng 8.79% etc)

Major foreign indices was gained in second fortnight (Dow 4.9%, UK FTSE 4.04%)

FII come back toward the market with an aggregate purchased of `876 Cr.

For the month of April 2009

Date

Open

High

Low

Close

1-Apr-09

9745.77

9921.96

9546.29

9901.99

2-Apr-09

10107.25 10431.98 10107.25 10348.83

6-Apr-09

10521.78 10654.89 10410.44 10534.87

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Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

8-Apr-09

10283.58 10778.11

10173

9-Apr-09

10876.15 10929.33 10655.96 10803.86

13-Apr-09

10916.43 11069.54 10800.84 10967.22

15-Apr-09

10805.14 11337.75 10719.18 11284.73

16-Apr-09

11358.06 11362.31 10900.47

17-Apr-09

11067.71 11339.47 10946.25 11023.09

20-Apr-09

11065.1

21-Apr-09

10765.39 11068.82 10764.08 10898.11

22-Apr-09

10968.6

23-Apr-09

10841.57 11200.86 10758.97 11134.99

24-Apr-09

11149.47 11362.88 11070.33 11329.05

27-Apr-09

11237.42

28-Apr-09

11371.34 11371.34 10961.76 11001.75

29-Apr-09

11091.56 11430.25 11091.56 11403.25

11209.66 10863.28

10742.34

10947.4

10979.5

11036.24 10715.66 10817.54

11492.1

11176.55 11371.85

Analysis
April 2009
In April market was continuous movement on 1st April related last month. Over all this month
market was recovery mood. In this month market movement was above 2000 points. In first
fortnight market crossed 10000 points and created its all time high for last two months. This
month was profitable to the investors. In second fortnight market opened at 11358 points all time
high from last 5 months. And market was continuously bullish after that. This month market all
94
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

time low made on very first day of the month at 9546 points and all time high at 11492 points on
27th April. On last market gave closed at 11403 points on last trading day which was more than
1500 points of March 2009 closing.

Reasons

All foreign market were positive

Starting of financial year investors revised their portfolio so that.

FIIs comeback with positive purchased `2690 cr.

For the month of May 2009

Date

Open

High

Low

Close

4-May-09

11635.24 12160.32 11635.24 12134.75

5-May-09

12159.74 12197.88 11985.88 12131.08

6-May-09

12100.69 12272.04 11899.41 11952.75

7-May-09

12064.51 12143.95 11981.13 12116.94

8-May-09

12092.97 12180.07 11765.06 11876.43

95
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

11-May-09

11997.37

12026.6

12-May-09

11629.97 12194.63 11625.39 12158.03

13-May-09

12201.93 12256.43 11934.44 12019.65

14-May-09

11774.04 11935.86 11695.52 11872.91

15-May-09

11948.7

18-May-09

13479.39 14284.21 13479.39 14284.21

19-May-09

14757.82 14930.54 13840.83 14302.03

20-May-09

14230.73 14405.51 13976.49 14060.66

21-May-09

14043.38 14089.51 13704.43 13736.54

22-May-09

13663.54 13936.93

13611.3

25-May-09

13999.44

13819.78 13913.22

26-May-09

13983.26 13991.46 13524.93 13589.23

27-May-09

13851.85 14122.78 13848.15 14109.64

28-May-09

14139.14 14376.34 14080.98 14296.01

29-May-09

14384.76

12218.98

14027.6

14726.6

11621.3

11948.7

11682.99

12173.42

13887.15

14384.76 14625.25

Analysis
May 2009 was very good recovery. In this month market was crossed new level 14,000
points all time high of last eight months. In this month market movement was above 3000 points.
Market creates its all time low at 11,621 points on 11th May and all time high on last trading day
29th May at 14,726 points. Market gave closed on that day at 14,625 points which was more than
3000 points than the last month.

Reasons

Positive effect of Election result


96
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

FIIs buying presser

Positive foreign market

For the month of June 2009


Date

Open

High

Low

Close

1-Jun-09

14790.8
9

14906.8
1

14658.0
1

14840.63

2-Jun-09

14942.2
1

14994.2
2

14608.2
3

14874.91

3-Jun-09

14902.6
2

15045.8
8

14734.9

14870.9

4-Jun-09

14755.0
8

15026.0
3

14601.9
1

15008.68

5-Jun-09

15040.2

15257.3

14994.0

15103.55

97
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

8-Jun-09

15153.2
1

15184.8
7

14604.2
3

14665.92

9-Jun-09

14618.9
8

15159.2
7

14526.6
9

15127

10-Jun-09

15168.1
8

15580.8
1

15168.1
8

15466.81

11-Jun-09

15517.3
6

15568.7
4

15242.1
9

15411.47

12-Jun-09

15446.8
2

15600.3

15174.2
8

15237.94

15-Jun-09

15195.8
3

15261.0
3

14808.0
9

14875.52

16-Jun-09

14788.2
7

15022.1
9

14621.9
7

14957.91

17-Jun-09

14978.5

14995.6
6

14447.9
3

14522.84

18-Jun-09

14503.0
5

14630.7
3

14188.2
5

14265.53

19-Jun-09

14321.9
8

14559.0
8

14179.7
7

14521.89

22-Jun-09

14591.2
8

14668.4

14269.7
7

14326.22

23-Jun-09

14147.8
7

14394.1
9

14016.9
5

14324.01

24-Jun-09

14388.2
1

14479.8
2

14207.0
2

14422.73

25-Jun-09

14476.1
5

14578.4
6

14261.1
4

14345.62

26-Jun-09

14373.5
7

14781.9
4

14373.5
7

14764.64

29-Jun-09

14764.6
4

14955.5
5

14685.4
5

14785.74

98
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

30-Jun-09

14785.7
4

14907.4
8

14420.4
1

14493.84

Analysis
In this month market movement was between 14,016 points all time low on 23 rd June and
15,580 points all time high on 10th June. In first fortnight most of the stocks hit the upper circuit
in consecutive trades. Market opens at 14,790 on 1st June and closed at 14,493 on 30th June.
Finally this month Sensex fell down 300 points all over month.

Reasons

Lok Sabha election results.

Foreign market was positive

FIIs net purchasing of `5604

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Factor Affecting Stock Market Volatility

For the month of July 2009


Date

Open

High

Low

Close

1-Jul-09

14493.84 14727.49 14355.52 14645.47

2-Jul-09

14694.31 14764.35 14469.69 14658.49

3-Jul-09

14552.72 14945.85 14499.74 14913.05

6-Jul-09

14962.12 15097.87 13959.44

7-Jul-09

14103.65 14251.88 14000.68 14170.45

8-Jul-09

14039.58 14039.58 13701.76 13769.15

9-Jul-09

13796.1

10-Jul-09

13803.12 13897.19 13418.39 13504.22

13-Jul-09

13405.95 13461.68 13219.99 13400.32

14-Jul-09

13549.42 13903.48 13549.42

15-Jul-09

13917.27 14299.54 13891.04 14253.24

16-Jul-09

14351.97

14493.1

14169.58 14250.25

17-Jul-09

14325.58

14800.7

14250.25 14744.92

20-Jul-09

14854.17 15209.36 14854.17 15191.01

21-Jul-09

15218.83 15234.21 14955.88 15062.49

22-Jul-09

15124.92 15369.42 14786.58 14843.12

23-Jul-09

15008.78 15264.84 14843.12 15231.04

24-Jul-09

15272.01 15418.61 15168.52 15378.96

27-Jul-09

15350.89 15463.09 15228.46 15375.04

28-Jul-09

15428.5

14043.4

13879.18 13643.97 13757.46

13853.7

15463.46 15240.53 15331.94

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Factor Affecting Stock Market Volatility

29-Jul-09

15293.19 15379.43 14888.41 15173.46

30-Jul-09

15169.23 15409.91 15065.48 15387.96

Analysis
In this month was hip-hop movement. This movement was near 2300 to 2500 points. In
this month there was no change than the last month. This month market opened at 14,493 and
closed on 31st July at 15,732 points which was all time high of this month. One time market was
fell down 1500 points and created all time low at 13,219 on 10th July.

Reasons

Announcement of Budget

Foreign market was positive impact

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Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

For the month of Aug 2009

Date

Open

High

Low

Close

3-Aug-09

15694.7
8

15963.3
6

15608.4

15924.23

4-Aug-09

15940.1

16002.4
6

15699.1
3

15830.98

5-Aug-09

15882.3
9

15973.1

15695.1
1

15903.83

6-Aug-09

15881.4
7

15969.8
1

15443.2
2

15514.03

7-Aug-09

15440.9
5

15501.9
4

15104

15160.24

10-Aug-09

15287.1
4

15417.3
4

14902.0
2

15009.77

11-Aug-09

15000.3
8

15218.6
5

14864.2
3

15074.59

12-Aug-09

14953.4
4

15043.6
2

14701.0
5

15020.16

13-Aug-09

15207.9
6

15545.1
3

15207.9
6

15518.49

14-Aug-09

15530.3
8

15535.4
7

15367.6
1

15411.63

17-Aug-09

15284.2
3

15411.6
3

14740.6
3

14784.92

18-Aug-09

14745.8

15134.5
1

14740.2
6

15035.26

19-Aug-09

15079.0

15096.9

14684.4

14809.64
102

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Factor Affecting Stock Market Volatility

20-Aug-09

14930.0
5

15145

14928.1
8

15012.32

21-Aug-09

14951.4
9

15275.1
7

14835.0
8

15240.83

24-Aug-09

15362.9
3

15676.3
5

15362.9
3

15628.75

25-Aug-09

15573.9
1

15735.3
2

15423.3
9

15688.47

26-Aug-09

15763.0
9

15831.4
9

15695.9
4

15769.85

27-Aug-09

15711.8

15853.7
1

15685.4
9

15781.07

28-Aug-09

15770.1
9

15957.6
7

15663.3
5

15922.34

31-Aug-09

15812.1
5

15821.3
5

15589.8

15666.64

Analysis
In this month crossed its one years all time high at 16,002 points on 4 th Aug. Starting of
the month market opens at 15,694 points and closed at 15,666 points on 31st Aug. There was no
major changed between last month closing and this month closing.

Reasons

India and China territorial front

FIIs were sober with a net purchased of `372 cr.

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Factor Affecting Stock Market Volatility

For the month of Sep 2009

Date

Open

High

Low

Close

1-Sep-09

15691.27 15923.09 15475.28 15551.19

2-Sep-09

15482.05

3-Sep-09

15539.34 15598.18 15356.72 15398.33

4-Sep-09

15425.86 15740.83 15358.94 15689.12

7-Sep-09

15793.27

8-Sep-09

16030.56 16232.16 16030.56 16123.67

9-Sep-09

16111.09 16215.74 16044.77 16183.55

10-Sep-09

16295.92 16434.77 16166.42 16216.86

15628.1

16035.5

15392.68 15467.46

15793.27 16016.32

104
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Factor Affecting Stock Market Volatility

11-Sep-09

16254.57 16337.98 16130.32

16264.3

14-Sep-09

16185.26 16252.18 16119.95 16214.19

15-Sep-09

16255.42 16477.23 16255.42 16454.45

16-Sep-09

16498.59 16700.56 16498.59 16677.04

17-Sep-09

16686.38 16820.02 16636.55 16711.11

18-Sep-09

16650.05 16765.03 16610.05

22-Sep-09

16805.22 16943.49 16763.78 16886.43

23-Sep-09

16905.5

16905.58 16683.78

24-Sep-09

16634.08

16834.1

25-Sep-09

16679.99 16812.02 16613.22

29-Sep-09

16829.11 16907.84

30-Sep-09

16868.46 17142.52 16868.46 17126.84

16741.3

16719.5

16494.92 16781.43

16802.8

16693
16852.91

Analysis
In this month market crossed 17,000 points on the last day of the month. First fortnight
market s gained considerable momentum and strongly breached the psychological 16,000 points.
Market movement of this month was near 2000 points. All time low of this month at 15,394
points was on 2nd Sep. & all time high at 17,142 on last day of the month and gave closed at
17,126 points.

Reasons

GDP growth, an improvement in the monsoon season

FII investments in India during the first 15 days aggregated net purchase of `1,475 crore
and `3,228 Cr. In second fortnight which actually gave momentum of the markets.

Foreign markets were positive

105
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Factor Affecting Stock Market Volatility

For the month of Oct 2009

Date

Open

High

Low

Close

1-Oct-09

17186.2

5-Oct-09

17062.01 17062.01

6-Oct-09

16879.38 16988.56 16622.05 16958.54

7-Oct-09

17069.42 17120.56 16764.07 16806.66

8-Oct-09

16908.02 16998.52 16775.36 16843.54

9-Oct-09

16915.96 16963.08 16606.95 16642.66

12-Oct-09

16687.32 17068.78 16687.32 17026.67

14-Oct-09

17117.9

17117.9

17231.11

15-Oct-09

17274.07 17350.39 17092.83

17195.2

17195.61 17059.36 17134.55

17274.59

16835.8

16866.41

106
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

16-Oct-09

17196.8

17347.85 17126.55 17322.82

20-Oct-09

17414.8

17457.26 17185.04 17223.01

21-Oct-09

17229.72 17248.69 16997.86 17009.17

22-Oct-09

17031.54 17031.54 16721.26 16789.74

23-Oct-09

16795.66 17006.77

16765.2

16810.81

26-Oct-09

16808.05 16938.88 16706.08

16740.5

27-Oct-09

16699.09 16699.09

16353.4

28-Oct-09

16335.78 16411.14 16144.17 16283.49

29-Oct-09

16191.39 16264.09 15993.83 16052.72

30-Oct-09

16135.87 16360.88

16311.5

15805.2

15896.28

Analysis
In this month, First fortnight market was hip hop movement. Market was opened at above
17,000 points of this month and then market was sometimes decline and sometimes up closing.
In second fortnight market was boom for two to four days. Than market was bearish and created
its all tome low at 15,805 on 30th Oct. & gave closed at 15,896 points which was 1200 points low
than the last month closing. Market hit its all time high at 17,457 points on 20 th Oct. during
Diwali time.

Reasons

Major foreign market was gave positive response

During the first fortnight FIIs had put in `4631 Cr. of funds into the equity market till
October 16.

News related increase in US unemployment in month of Sep.

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Factor Affecting Stock Market Volatility

For the month of Nov 2009

Date

Open

High

Low

Close

3-Nov-09

15838.63 15957.06 15330.56 15404.94

4-Nov-09

15487.97 15929.09 15487.97 15912.13

5-Nov-09

15926.13 16092.38 15564.89

6-Nov-09

16137.42 16283.86 16075.19 16158.28

9-Nov-09

16190.79 16517.42 16147.21 16498.72

10-Nov-09

16552.43 16677.53 16371.66 16440.56

11-Nov-09

16444.44

12-Nov-09

16822.18 16896.62 16605.01 16696.03

13-Nov-09

16693.15 16909.74

16666.7

16-Nov-09

16893.11

16893.11 17032.51

17-Nov-09

17036.23 17080.17 16882.98 17050.65

16887.8

17083.2

16405.19

16063.9

16849.6

16848.83

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Factor Affecting Stock Market Volatility

18-Nov-09

17032.01 17098.79 16958.41 16998.78

19-Nov-09

17004.98 17004.98 16712.33 16785.65

20-Nov-09

16772.75 17041.79 16635.75 17021.85

23-Nov-09

17067.14 17214.58 17045.02 17180.18

24-Nov-09

17230.86 17230.86 17027.52 17131.08

25-Nov-09

17149.08 17290.48 17124.15 17198.95

26-Nov-09

17199.05 17202.51 16808.87 16854.93

27-Nov-09

16718.8

30-Nov-09

16655.75 17026.91 16655.75 16926.22

16718.8

16210.44 16632.01

Analysis
In this month market opened as previous trend but on that day market was crashed by
more than 491 points and made its all time low of this month. In first fortnight the BSE Sensex
opened very weak at 15,926 points and reached its bottom at 15,564 points on turnover front, the
market remained gained 39.42 per cent, 26.23 per November 5 in an intra-day session. In this
month market made its all time high at 17,290 on 25th Nov. This month market movement was
2000 points. On 30th Nov. market was closed at 16,926 points which was 1000 positive than the
last month closing.

Reasons

International markets also fared positively with US Dow gaining a whopping 6.11 per
cent.

The robust GDP numbers helped infuse a fresh supply of blood into the otherwise
depressed markets.

No impact of Dubai crises

109
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Factor Affecting Stock Market Volatility

For the month of Dec 2009

Date

Open

High

Low

Close

1-Dec-09

16947.4
6

17218.4
6

16947.4
6

17198.27

2-Dec-09

17226.4
9

17329.6
8

17142.3
6

17169.91

3-Dec-09

17199.6
4

17361.2
7

17128.2
1

17185.68

4-Dec-09

17182.2
3

17291.8
3

17032.8
1

17101.54

7-Dec-09

17106.7
4

17176.6
2

16943.0
1

16983.14

8-Dec-09

16984.5
4

17237.7
9

16964.1
1

17227.68

9-Dec-09

17204.3
2

17227.9
6

17057.3
7

17125.22

10-Dec-09

17107

17231.0
5

17032.3

17189.31

110
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Factor Affecting Stock Market Volatility

11-Dec-09

17199.7
4

17351.7
1

17056.1
2

17119.03

14-Dec-09

17118.1
4

17275.1
9

17048.1
7

17097.55

15-Dec-09

17150.5
9

17200.4
7

16835.7
8

16877.16

16-Dec-09

16866.9
5

16996.1
2

16777.9
4

16912.77

17-Dec-09

16912.2
5

16979.5
2

16826

16894.25

18-Dec-09

16855.9
1

16899.1
9

16693.0
6

16719.83

21-Dec-09

16724.8
4

16750.9
9

16577.7
8

16601.2

22-Dec-09

16633.8
1

16738.1
2

16633.8
1

16692

23-Dec-09

16723.9
6

17252.0
9

16723.9
6

17231.11

24-Dec-09

17265.4
7

17413.6
9

17198.0
9

17360.61

29-Dec-09

17388.6
7

17486.0
5

17372.6
3

17401.56

30-Dec-09

17402.2
4

17440.0
5

17322.8

17343.82

31-Dec-09

17365.3
7

17530.9
4

17365.3
7

17464.81

Analysis
In this month market opened same as previous trend. In first fortnight market movement
was 200 to 300 points. Last fortnight market movement was 500 to 700 points. Over all market

111
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

movement was 800 to 900 points. Market made its all time low at 16,577 on 21st Dec. and all
time high at 17,530 on last trading day of the month & gave the close at 17,464 points whish was
high closing of the month.

Reason

On the institutional investment front, FIIs continued to place their trust on Indian bourses
with a net buy of `2,287 crore till December 11. The best part was that barring December
7 and December 9 when the selling was to the tune of `3 crore and `297 crore
respectively, they remained as net gainer.

For the month of Jan 2010

Date
4-Jan-10

Open

High

Low

Close

17473.45 17582.84 17378.38 17558.73


112

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Factor Affecting Stock Market Volatility

5-Jan-10

17555.77 17729.78 17555.77 17686.24

6-Jan-10

17719.47 17790.33 17636.71 17701.13

7-Jan-10

17701.97 17733.34 17566.54 17615.72

8-Jan-10

17603.87 17658.12 17508.96 17540.29

11-Jan-10

17724.59 17776.57 17500.79 17526.71

12-Jan-10

17534.1

13-Jan-10

17368.03 17528.31 17276.46

14-Jan-10

17525.71 17628.04 17525.71 17584.87

15-Jan-10

17604.31 17639.85 17529.11

17554.3

18-Jan-10

17538.72

17641.08

19-Jan-10

17650.82 17664.86 17463.78 17486.06

20-Jan-10

17486.69 17590.59 17425.05 17474.49

21-Jan-10

17474.49 17474.49 17025.26 17051.14

22-Jan-10

16978.36 17000.33 16608.09 16859.68

25-Jan-10

16847.7

16877.77 16705.56 16780.46

27-Jan-10

16708.6

16708.6

28-Jan-10

16317.16 16524.69 16182.14 16306.87

29-Jan-10

16253.82 16390.31 15982.08 16357.96

5-Jan-10

17555.77 17729.78 17555.77 17686.24

17612

17712.6

17392.55 17422.51

17505.5

17509.8

16230.85 16289.82

Analysis
On the first day of the new year Sensex opened at 17,473. Make the high of 17,790 on 6
January. With making low of 16,289 on 27th Sensex closed at 16,357. 17,790 was the 52 weeks
high.
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Factor Affecting Stock Market Volatility

Reasons

Global economy on the path of recovery and robust future growth expectations of Indian
economy.

FIIs make purchase of 3056 crores till 8th January.

Global markets are at the way of recovery.

The last fortnight fall was due to US President Barack Obamas tough stand against the
big banks.

For the month of Feb 2010

Date

Open

High

Low

Close

1-Feb-10

16339.3
2

16422.4

16160.8

16356.03

114
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Factor Affecting Stock Market Volatility

2-Feb-10

16368.4
4

16525.9
8

16129.1
1

16163.44

3-Feb-10

16210.2
5

16552.9
9

16210.2
5

16496.05

4-Feb-10

16500.2
9

16508.2
2

16188.8

16224.95

5-Feb-10

16222.5
6

16222.5
6

15725.4
3

15790.93

8-Feb-10

15931.3
4

16061.4
1

15651.9
9

15935.61

9-Feb-10

15940.7
3

16094.1
3

15862.9

16042.18

10-Feb-10

16042.1
8

16141.1
3

15892.0
1

15922.17

11-Feb-10

15928.2
8

16202.8
7

15928.2
8

16152.59

15-Feb-10

16186.9

16227.0
4

16011.8
2

16038.35

16-Feb-10

16042.1
8

16310.3
9

16021.2
9

16226.68

17-Feb-10

16228.9
1

16480.8
9

16228.9
1

16428.91

18-Feb-10

16421.2

16452.5
1

16287.1
7

16327.84

19-Feb-10

16256.5
3

16301.9
4

16074.5
8

16191.63

22-Feb-10

16191.3
2

16423.2
3

16191.3
2

16237.05

23-Feb-10

16213.1
4

16324.9
3

16178.9
1

16286.32

24-Feb-10

16218.6
8

16328.4
4

16187.4
4

16255.97

25-Feb-10

16264.1

16329.3

16167.1

16254.2
115

Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

26-Feb-10

16255.3
3

16669.2
5

16249.6
7

16429.55

Analysis
Sensex opened at 16,339 and make high of 16,669 on last day of the trading for month of
February and make the low of 15,651 and closed at 16,429. Market was in very volatile phase.

Reason

The global cues were very disruptive

Union Budget make the recovery from the lowest piont of the Sensex.

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Factor Affecting Stock Market Volatility

For the month of March 2010

Date

Open

High

Low

Close

2-Mar-10

16438.45 16808.49 16438.45 16772.56

3-Mar-10

16778.29 17012.61 16778.29 17000.01

4-Mar-10

17013.68 17024.96 16888.05

5-Mar-10

16988.29 17097.71 16936.12 16994.49

8-Mar-10

17034.92 17187.55 17034.92

9-Mar-10

17089.22 17130.83 17031.21 17052.54

10-Mar-10

17072.94 17183.51 17027.92 17098.33

11-Mar-10

17087.63 17215.07 17054.28 17167.96

12-Mar-10

17176.02 17244.54 17126.93 17166.62

15-Mar-10

17166.97 17195.49 17061.14 17164.99

16-Mar-10

17169.84 17416.55 17150.06 17383.18

17-Mar-10

17389.47 17576.78 17389.47 17490.08

18-Mar-10

17492.81 17548.13 17417.61 17519.26

19-Mar-10

17531.47 17600.87 17502.14 17578.23

22-Mar-10

17481.96 17559.18 17337.38 17410.57

23-Mar-10

17422.51 17530.79 17356.64 17451.02

25-Mar-10

17458.51 17575.23 17383.21 17558.85

26-Mar-10

17558.85 17682.94 17558.85 17644.76

29-Mar-10

17639.18 17793.01 17639.18 17711.35

16971.7

17102.6

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Factor Affecting Stock Market Volatility

30-Mar-10

17703.67 17783.35 17558.22 17590.17

31-Mar-10

17602.39

17699.5

17488.55 17527.77

Analysis
Sensex opened at 16,339 and make high of 16,669 on last day of the trading for month of
February and make the low of 15,651 and closed at 16,429. Market was in very volatile phase.

Reasons

The global cues were very disruptive

Union Budget make the recovery from the lowest piont of the Sensex.

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Factor Affecting Stock Market Volatility

For the month of April 2010

Date

Open

High

Low

Close

01-Apr-2010 17,555.04 17,706.56 17,555.04 17,692.62


05-Apr-2010 17,693.66 17,948.54 17,693.66 17,935.68
06-Apr-2010 17,940.32 17,991.41 17,898.00 17,941.37
07-Apr-2010 17,915.60 18,047.86 17,878.31 17,970.02
08-Apr-2010 17,950.56 17,960.91 17,679.34 17,714.40
09-Apr-2010 17,715.16 17,971.47 17,715.16 17,933.14
12-Apr-2010 17,874.16 17,995.25 17,816.19 17,853.00
13-Apr-2010 17,831.38 17,892.78 17,736.09 17,821.96
15-Apr-2010 17,804.55 17,975.57 17,619.02 17,639.26
16-Apr-2010 17,645.91 17,663.99 17,529.55 17,591.18
19-Apr-2010 17,584.86 17,584.86 17,276.80 17,400.68
20-Apr-2010 17,394.68 17,560.09 17,394.68 17,460.58
21-Apr-2010 17,458.76 17,565.55 17,446.51 17,472.56
22-Apr-2010 17,476.48 17,778.34 17,408.02 17,573.99
23-Apr-2010 17,533.88 17,725.88 17,533.88 17,694.20
26-Apr-2010 17,692.26 17,826.48 17,692.26 17,745.28
27-Apr-2010 17,744.93 17,769.25 17,678.56 17,690.62
28-Apr-2010 17,643.59 17,643.59 17,344.58 17,380.08
29-Apr-2010 17,382.09 17,532.86 17,382.09 17,503.47
30-Apr-2010 17,503.47 17,646.61 17,503.47 17,558.71

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Analysis
On 1st April starting new financial year market opened at 17,555. And make the high of
18,047 on 7th April. And make the low of 17,276 on 19th April. Finally Sensex closed on 17,558.

Reasons

With good fourth quarter as well as annual results in Indian corporate.

Heavily investment of FIIs in Indian bourses

Global recovery after the recession

Goldman Sachs controversy makes all the financial market floundering at the end of the
month.

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For the month of May 2010

Date

Open

High

Low

Close

03-May-2010

17,536.86 17,536.86 17,345.92 17,386.08

04-May-2010

17,371.75 17,464.82 17,101.96 17,137.14

05-May-2010

17,103.95 17,121.66 16,858.23 17,087.96

06-May-2010

17,080.47 17,080.47 16,823.00 16,987.53

07-May-2010

16,939.58 16,939.58 16,684.13 16,769.11

10-May-2010

16,799.49 17,356.54 16,799.49 17,330.55

11-May-2010

17,336.13 17,379.15 17,104.45 17,141.53

12-May-2010

17,141.53 17,252.52 17,028.08 17,195.81

13-May-2010

17,323.63 17,389.15 17,240.35 17,265.87

14-May-2010

17,267.25 17,329.32 16,923.65 16,994.60

17-May-2010

16,961.92 16,961.92 16,551.00 16,835.56

18-May-2010

16,840.59 17,000.34 16,744.13 16,875.76

19-May-2010

16,802.39 16,802.39 16,373.32 16,408.49

20-May-2010

16,419.10 16,617.80 16,419.10 16,519.68

21-May-2010

16,317.94 16,486.74 16,187.03 16,445.61

24-May-2010

16,494.61 16,757.73 16,413.03 16,469.55

25-May-2010

16,444.57 16,444.57 15,960.15 16,022.48

26-May-2010

16,069.78 16,410.35 16,069.78 16,387.84

27-May-2010

16,410.88 16,694.55 16,331.10 16,666.40

28-May-2010

16,692.66 16,891.17 16,692.66 16,863.06

31-May-2010

16,872.17 16,971.15 16,806.50 16,944.63

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Analysis
In the month may market opened at 17,536. Make the high of 17,646 on that day itself.
With making the low of 15,960 on 25th May Sensex closed at 16,944.

Reasons

Crisis in European country make fall in the Sensex

The market volatile in centre of the month but after the announcement of package by
European Union (EU) recovery was made in the end sessions.

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For the month of June 2010

Date

Open

High

Low

Close

01-Jun-2010 16,942.82 16,942.82 16,318.39 16,572.03


02-Jun-2010 16,574.79 16,774.15 16,571.45 16,741.84
03-Jun-2010 16,786.28 17,072.63 16,786.28 17,022.33
04-Jun-2010 17,036.55 17,150.42 16,963.92 17,117.69
07-Jun-2010 17,069.77 17,069.77 16,686.73 16,781.07
08-Jun-2010 16,760.60 16,895.73 16,560.64 16,617.10
09-Jun-2010 16,621.12 16,817.69 16,591.26 16,657.89
10-Jun-2010 16,668.91 16,942.60 16,668.91 16,922.08
11-Jun-2010 16,994.07 17,131.56 16,994.07 17,064.95
14-Jun-2010 17,118.74 17,351.18 17,118.74 17,338.17
15-Jun-2010 17,355.49 17,442.50 17,249.46 17,412.83
16-Jun-2010 17,500.30 17,530.38 17,407.30 17,462.87
17-Jun-2010 17,490.52 17,647.42 17,394.90 17,616.69
18-Jun-2010 17,628.02 17,721.99 17,525.29 17,570.82
21-Jun-2010 17,654.81 17,919.62 17,654.81 17,876.55
22-Jun-2010 17,868.12 17,868.12 17,725.63 17,749.69
23-Jun-2010 17,694.87 17,782.41 17,629.19 17,755.94
24-Jun-2010 17,750.51 17,845.65 17,632.80 17,730.24
25-Jun-2010 17,705.11 17,714.73 17,546.73 17,574.53
28-Jun-2010 17,577.66 17,794.80 17,571.85 17,774.26
29-Jun-2010 17,777.95 17,777.95 17,465.73 17,534.09
30-Jun-2010 17,476.85 17,725.04 17,373.78 17,700.90

123
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

Analysis
Sensex opened at 16,942 and make the high of 17,919 on 21st July. The low was made of
16,318 on opening day and the closing was settled on 17,700.

Reasons

In starting of the month due to the European crisis Sensex was weak.

There was fear of higher inflation in market and inflation was 13.73 per cent.

Fear of hike in the interest rate

As the industrial production data announced the Sensex was recover

For the month of July 2010


124
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

Date

Open

High

Low

Close

01-Jul-2010 17679.34 17679.34 17455.41 17509.33


02-Jul-2010 17523.47 17598.94 17426.78 17460.95
05-Jul-2010 17473.83 17505.73 17423.74 17441.44
06-Jul-2010 17402.68 17643.14 17395.58 17614.48
07-Jul-2010 17623.66 17623.66 17447.15 17471.03
08-Jul-2010 17536.48 17728.37 17536.48 17651.73
09-Jul-2010 17667.85 17857.58 17667.85 17833.54
12-Jul-2010 17875.97 18010.07 17874.95

17937.2

13-Jul-2010

17985.9

17908.3 17998.04 17855.85

14-Jul-2010 18024.95 18167.22 17897.26 17938.16


15-Jul-2010 17874.71 17978.56 17858.73 17909.46
16-Jul-2010 17911.13 17980.27 17892.16 17955.82
19-Jul-2010 17914.12 18005.07

17856.4 17928.42

20-Jul-2010 17918.43 18040.17 17848.07 17878.14


21-Jul-2010 17873.92

18012.2 17873.92 17977.23

22-Jul-2010 17978.37

18127.9 17879.88 18113.15

23-Jul-2010 18132.29 18237.56 18093.93 18130.98


26-Jul-2010 18056.24 18194.09 17993.88 18020.05
27-Jul-2010 17998.74 18149.56 17998.74 18077.61
28-Jul-2010 18077.85 18137.14
29-Jul-2010 17961.58

17925.4 17957.37

18013.1 17902.84

17992

30-Jul-2010 17981.06 18000.35 17838.92 17868.29

Analysis
125
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

Sensex opened with 17,523 and make the high of 18,237. With touching the bottom of
17,505 in first fortnight, Sensex closed at 17,868 .

Reasons

Acquisitions, Mergers, IPOs, new orders make rise in the Sensex.

Gradual improvement make the Sensex touch the poiny of 18,000

Less than expected hilke in the intrest rate.

FIIs make the purchase of `3249 crore.

For the month of Aug 2010

126
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

Date

Open

High

Low

Close

02-Aug-2010

17,911.31

18,104.24

17,911.31

18,081.21

03-Aug-2010

18,149.90

18,167.45

18,072.38

18,114.83

04-Aug-2010

18,115.56

18,249.46

18,093.03

18,217.44

05-Aug-2010

18,234.85

18,295.43

18,156.45

18,172.83

06-Aug-2010

18,165.49

18,244.56

18,118.19

18,143.99

09-Aug-2010

18,141.11

18,309.25

18,139.90

18,287.50

10-Aug-2010

18,272.28

18,293.40

18,170.77

18,219.99

11-Aug-2010

18,177.35

18,263.88

18,042.89

18,070.19

12-Aug-2010

17,972.65

18,113.62

17,914.78

18,073.90

13-Aug-2010

18,080.29

18,260.39

18,050.42

18,167.03

16-Aug-2010

18,169.80

18,203.92

17,997.46

18,050.78

17-Aug-2010

18,049.19

18,140.15

18,026.00

18,048.85

18-Aug-2010

18,067.67

18,286.00

18,067.67

18,257.12

19-Aug-2010

18,276.50

18,475.27

18,276.50

18,454.94

20-Aug-2010

18,444.24

18,464.14

18,360.90

18,401.82

23-Aug-2010

18,400.33

18,454.38

18,371.02

18,409.35

24-Aug-2010

18,407.01

18,451.73

18,260.71

18,311.59

25-Aug-2010

18,308.51

18,312.43

18,156.00

18,179.64

26-Aug-2010

18,194.78

18,261.06

18,159.13

18,226.35

27-Aug-2010

18,205.90

18,248.36

17,944.16

17,998.41

30-Aug-2010

18,063.48

18,216.50

17,960.23

18,032.11

31-Aug-2010

18,015.66

18,015.66

17,819.99

17,971.12

Analysis
127
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

Sensex opened at 17,981 and make the peak of 18,475 on 18th August. With making low
of 17,819 Sensex closed at 17,971 on last trading day of the August month. This month was very
range bound month. Market was in consolidation phase.

Reasons

All the market of world are falled 2-3.5 per cent.

FIIs were net Buyer where as Indian MFs were net seller for all the month.

For the month of Sep 2010

128
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

Date

Open

High

Low

Close

01-Sep-2010 18,027.12 18,227.14 18,027.12 18,205.87


02-Sep-2010 18,215.28 18,355.84 18,215.28 18,238.31
03-Sep-2010 18,238.08 18,316.32 18,206.50 18,221.43
06-Sep-2010 18,124.29 18,600.30 18,124.29 18,560.05
07-Sep-2010 18,571.73 18,711.20 18,571.43 18,645.06
08-Sep-2010 18,627.67 18,721.21 18,540.65 18,666.71
09-Sep-2010 18,669.12 18,823.17 18,669.12 18,799.66
13-Sep-2010 18,845.31 19,243.44 18,845.31 19,208.33
14-Sep-2010 19,218.13 19,487.02 19,218.13 19,346.96
15-Sep-2010 19,343.74 19,554.50 19,340.99 19,502.11
16-Sep-2010 19,476.93 19,636.66 19,383.46 19,417.49
17-Sep-2010 19,436.71 19,639.18 19,436.71 19,594.75
20-Sep-2010 19,445.42 19,927.30 19,445.42 19,906.10
21-Sep-2010 19,925.79 20,088.96 19,860.88 20,001.55
22-Sep-2010 20,039.43 20,105.54 19,804.02 19,941.72
23-Sep-2010 19,944.30 19,998.32 19,771.63 19,861.01
24-Sep-2010 19,836.43 20,071.75 19,833.52 20,045.18
27-Sep-2010 20,082.26 20,267.98 20,082.26 20,117.38
28-Sep-2010 20,114.37 20,157.51 19,981.96 20,104.86
29-Sep-2010 20,086.89 20,234.05 19,923.11 19,956.34
30-Sep-2010 19,931.49 20,114.73 19,864.46 20,069.12

Analysis
Sensex opened at 18,027 and the openingbitself was the low for this month and make the
peak of 20,267 on 27th September. Sensex closed at 20,445.
129
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

Reasons

With positive news from global indices Sensex recovered Sensex gained 1567 point in
first fortnight.

FIIs make the puchse of `32,804 crore.

For the month of Oct 2010

Date

Open

High

Low

Close

01-Oct-2010

20094.1

20475.47

20094.1

20445.04

130
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

04-Oct-2010

20501.21

20706.74

20437.36

20475.73

05-Oct-2010

20461.98

20560.54

20383.16

20407.71

06-Oct-2010

20448.69

20669.95

20447.05

20543.08

07-Oct-2010

20544.3

20581.29

20272.77

20315.32

08-Oct-2010

20297.58

20409.19

20145.74

20250.26

11-Oct-2010

20291.59

20461.27

20274.95

20339.89

12-Oct-2010

20357.79

20368.4

20107.25

20203.34

13-Oct-2010

20223.45

20703.97

20211.66

20687.88

14-Oct-2010

20700.42

20854.55

20442.82

20497.64

15-Oct-2010

20518.5

20578.45

20090.18

20125.05

18-Oct-2010

20160.55

20229.39

19870.51

20168.89

19-Oct-2010

20298.55

20332.02

19923.96

19983.13

20-Oct-2010

19924.02

20043.82

19822.66

19872.15

21-Oct-2010

19951.34

20293.1

19886.12

20260.58

22-Oct-2010

20334.14

20351.74

20088.67

20165.86

25-Oct-2010

20199.73

20452.3

20199.73

20303.12

26-Oct-2010

20325.44

20344.68

20189.3

20221.39

27-Oct-2010

20220.58

20220.58

19923.71

20005.37

28-Oct-2010

20116.49

20185.46

19869.32

19941.04

29-Oct-2010

19986.32

20080.33

19768.96

20032.34

Analysis
Sensex opened at 20,501 and make the peak of 20,854 on 13 th October. Sensex make the
low of 19,872, and closed at 20,032. This was the time for correction in Indian market.

Reasons

131
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

In the first fortnight there was opening ceremony of common wealth games.

RIL registered the highest result(PAT increased by 27.8 Per cent)

Powerful listing of Coal India.

FIIs make the purchase of `11,215 crore in this month.

For the month of Nov 2010

Date

Open

High

Low

Close

01-Nov-2010

20,272.49

20,609.65

20,267.10

20,355.63

02-Nov-2010

20,407.18

20,418.35

20,281.73

20,345.69

132
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

03-Nov-2010

20,472.86

20,538.80

20,426.18

20,465.74

04-Nov-2010

20,605.63

20,917.03

20,605.63

20,893.57

05-Nov-2010

21,045.66

21,108.64

20,961.98

21,004.96

08-Nov-2010

21,041.97

21,075.71

20,822.37

20,852.38

09-Nov-2010

20,851.91

20,984.08

20,762.81

20,932.48

10-Nov-2010

20,917.54

20,970.91

20,849.92

20,875.71

11-Nov-2010

20,930.45

20,937.38

20,544.22

20,589.09

12-Nov-2010

20,529.74

20,593.91

20,108.40

20,156.89

15-Nov-2010

20,167.62

20,335.51

20,046.60

20,309.69

16-Nov-2010

20,371.73

20,380.10

19,832.22

19,865.14

18-Nov-2010

19,997.83

20,056.44

19,615.51

19,930.64

19-Nov-2010

19,982.75

19,982.75

19,504.87

19,585.44

22-Nov-2010

19,713.84

19,989.02

19,641.42

19,957.59

23-Nov-2010

19,841.42

19,841.42

19,342.69

19,691.84

24-Nov-2010

19,735.28

19,835.57

19,375.92

19,459.85

25-Nov-2010

19,560.25

19,628.27

19,257.37

19,318.16

26-Nov-2010

19,391.96

19,417.61

18,954.82

19,136.61

29-Nov-2010

19,230.34

19,450.09

19,167.19

19,405.10

30-Nov-2010

19,373.23

19,610.46

19,218.02

19,521.25

Analysis
Sensex opened at 20,272 and make the high of 21,108 in this month, with making low of
19,136 on 26th November, it closed at 19,521. This was the month of Diwali so in the muhurat
trading session Sensex touched its high of the month.

Reasons

Dismal IIP numbers make market haywire.


133
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

Industrial growth was declined to 4.4 per cent

For the month of Dec 2010

Date

Open

High

Low

Close

01-Dec-2010

19,529.99

19,887.26

19,525.15

19,850.00

02-Dec-2010

20,038.66

20,084.25

19,917.77

19,992.70

03-Dec-2010

20,007.89

20,067.81

19,877.12

19,966.93

06-Dec-2010

20,038.25

20,217.86

19,944.71

19,981.31

134
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

07-Dec-2010

19,982.90

20,008.36

19,824.44

19,934.64

08-Dec-2010

19,874.30

19,875.51

19,611.35

19,696.48

09-Dec-2010

19,746.15

19,771.09

19,160.87

19,242.36

10-Dec-2010

19,201.89

19,537.40

19,074.57

19,508.89

13-Dec-2010

19,600.28

19,710.57

19,321.41

19,691.78

14-Dec-2010

19,746.75

19,836.82

19,621.41

19,799.19

15-Dec-2010

19,791.22

19,817.61

19,571.43

19,647.77

16-Dec-2010

19,698.58

19,897.22

19,554.35

19,864.85

20-Dec-2010

19,770.02

20,006.16

19,711.12

19,888.88

21-Dec-2010

19,925.76

20,090.84

19,925.76

20,060.32

22-Dec-2010

20,118.82

20,151.25

19,931.31

20,015.80

23-Dec-2010

20,038.83

20,076.08

19,939.30

19,982.88

24-Dec-2010

19,911.46

20,086.42

19,880.36

20,073.66

27-Dec-2010

20,062.60

20,190.13

20,010.33

20,028.93

28-Dec-2010

20,056.47

20,090.41

19,981.76

20,025.42

29-Dec-2010

20,060.88

20,274.20

20,054.64

20,256.03

30-Dec-2010

20,274.12

20,410.91

20,274.12

20,389.07

31-Dec-2010

20,412.76

20,552.03

20,412.76

20,509.09

Analysis
Sensex opened at 19,529 and make the high of 20,552 at the last trading day of the
month.Sensex make the low of 19,074 on 10 December. And closed at 20,509.

Reason

In first fortnight due to problems in china the market remain remain rang bound.

FIIs make sale of `3341 crore in first fortnight.

Inflation number make the market down somewhere but not make the big crashed.
135
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

For the month of Jan 2011


Date

Open

High

Low

Close

03-Jan-2011

20,621.61

20,664.80

20,531.00

20,561.05

04-Jan-2011

20,617.38

20,651.21

20,449.01

20,498.72

05-Jan-2011

20,509.95

20,509.95

20,243.95

20,301.10

06-Jan-2011

20,395.50

20,425.85

20,107.17

20,184.74

07-Jan-2011

20,163.85

20,210.62

19,629.22

19,691.81

10-Jan-2011

19,714.42

19,720.43

19,158.43

19,224.12
136

Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

11-Jan-2011

19,279.77

19,431.56

19,003.60

19,196.34

12-Jan-2011

19,353.34

19,574.63

19,048.56

19,534.10

13-Jan-2011

19,492.30

19,522.38

19,136.27

19,182.82

14-Jan-2011

19,198.04

19,447.82

18,811.96

18,860.44

17-Jan-2011

18,911.43

19,018.94

18,779.38

18,882.25

18-Jan-2011

18,983.20

19,120.62

18,933.47

19,092.05

19-Jan-2011

19,153.31

19,167.06

18,898.56

18,978.32

20-Jan-2011

18,892.43

19,100.26

18,794.73

19,046.54

21-Jan-2011

19,007.08

19,065.34

18,932.40

19,007.53

24-Jan-2011

19,095.69

19,194.46

18,998.38

19,151.28

25-Jan-2011

19,227.42

19,340.99

18,949.44

18,969.45

27-Jan-2011

19,086.69

19,086.69

18,656.05

18,684.43

28-Jan-2011

18,708.62

18,723.12

18,235.45

18,395.97

31-Jan-2011

18,226.21

18,395.09

18,038.48

18,327.76

Analysis
In this month market opened at above 20,000 points and created its all time high on first
trading days at 20,664. Market movement of this month was 2400 to 2500 points. Market made
its all tile low at last trading days of the month at 18,038 points.

Reasons

High inflation rate

All foreign market had negative during this month

RBI quarterly review of credit policy.

137
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

For the month of Feb 2011

Date

Open

High

Low

Close

01-Feb-2011

18,425.18

18,452.06

17,982.17

18,022.22

02-Feb-2011

18,216.91

18,306.00

18,042.61

18,090.62

03-Feb-2011

18,113.73

18,466.21

18,064.61

18,449.31

04-Feb-2011

18,450.07

18,542.20

17,926.98

18,008.15

07-Feb-2011

18,135.02

18,180.94

17,977.01

18,037.19

08-Feb-2011

18,141.51

18,141.51

17,742.18

17,775.70

138
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

09-Feb-2011

17,723.99

17,864.32

17,508.35

17,592.77

10-Feb-2011

17,603.29

17,636.88

17,362.59

17,463.04

11-Feb-2011

17,519.13

17,752.56

17,295.62

17,728.61

14-Feb-2011

17,940.16

18,227.62

17,857.12

18,202.20

15-Feb-2011

18,260.08

18,361.66

18,050.48

18,273.80

16-Feb-2011

18,273.06

18,358.84

18,216.12

18,300.90

17-Feb-2011

18,345.12

18,532.61

18,233.79

18,506.82

18-Feb-2011

18,564.08

18,690.97

18,159.82

18,211.52

21-Feb-2011

18,238.54

18,457.49

18,082.66

18,438.31

22-Feb-2011

18,390.72

18,457.90

18,187.33

18,296.16

23-Feb-2011

18,233.77

18,377.48

18,150.01

18,178.33

24-Feb-2011

18,135.12

18,135.12

17,559.70

17,632.41

25-Feb-2011

17,775.08

17,812.44

17,469.97

17,700.91

28-Feb-2011

17,811.08

18,296.53

17,718.88

17,823.40

Analysis
In first fortnight market made its all time low at 17,295 on 11 th February of this month
and in second fortnight made its all time high at 18,690 on 18th February of this month. Market
movement of this month was 1200 to 1300 points. After that market crashed and gave closing on
28th February at 18,823 points whish was 700 points down than the last month.

Reasons

Previous bull trend(First fortnight)

Budget declared

Tsunami in Japan

139
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

For the month of March 2011

140
Gidc Rajju Shrof Rofel Institute Of Management Studies

Factor Affecting Stock Market Volatility

Date

Open

High

Low

Close

01-Mar-2011 17,982.28 18,478.68 17,964.39 18,446.50


03-Mar-2011 18,318.32 18,603.57 18,253.62 18,489.76
04-Mar-2011 18,622.70 18,736.97 18,448.69 18,486.45

Analysis

07-Mar-2011 18,361.65 18,361.65 18,058.71 18,222.67


08-Mar-2011 18,277.34 18,466.81 18,266.62 18,439.65

After

09-Mar-2011 18,522.80 18,583.30 18,303.80 18,469.95

great

10-Mar-2011 18,430.84 18,430.84 18,261.26 18,327.98

sunami in

11-Mar-2011 18,248.11 18,368.43 18,063.29 18,174.09

Japan and

14-Mar-2011 18,167.10 18,463.84 18,155.43 18,439.48


15-Mar-2011 18,113.79 18,326.33 17,920.55 18,167.64

T-

Budget
market
was

16-Mar-2011 18,263.68 18,444.47 18,263.68 18,358.69

recovery in

17-Mar-2011 18,227.16 18,354.27 18,104.02 18,149.87

this month.

18-Mar-2011 18,251.18 18,259.61 17,849.53 17,878.81

In

21-Mar-2011 17,984.72 18,007.73 17,792.17 17,839.05

month

22-Mar-2011 17,929.09 18,041.38 17,878.80 17,988.30


23-Mar-2011 17,972.04 18,218.28 17,950.17 18,206.16

tis

market
made
all

its
time

24-Mar-2011 18,286.42 18,373.97 18,269.32 18,350.74

high

25-Mar-2011 18,480.69 18,858.30 18,480.69 18,815.64

19,575 on

28-Mar-2011 18,799.71 19,024.18 18,799.57 18,943.14

31st March

29-Mar-2011 18,949.57 19,226.21 18,944.82 19,120.80

and

30-Mar-2011 19,178.77 19,357.10 19,178.77 19,290.18


31-Mar-2011 19,339.75 19,575.16 19,284.35 19,445.22

at

all

time low at
19,792
points

on

st

21 March.
This month market gave good return to the investor because when market was closed 31 st
march at 19,792 points it was 1300 points up than the last month closing.

Reasons

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Positive impact of Budget

FIIs offloading ` 8700 cr. Between January to March

Chapter 7
Findings
After undertaking the indepth study of stock market and various financial markets, it was found
that the several events which had most affection in fluctuation of Sensex particular month.

2006-07
Factors which affect heavily in the yea 2006-07 are as follows

Fluctuation in crude oil prices.


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Expectation of good result.

Financial Results of Indian corporate.

FIIs positive response in Financial Results.

Kerala and Bengal election.

Increased Inflation rate.

Expectation of good result.

Rumor of resigning of our Prime Minister Dr. Manmohan Singh.

Weak global markets concern.

IIP rose to 12.4 per cent.

Appreciation of Rupee Value.

Higher growth in GDP(8 per cent)

Hike in the CRR rate.

Successful IPO (Parsvnath Devlopers and Shobha Developers).

Raising Short-Term Capital Gains Tax to 15 per cent.

Making Long-Term Capital Gains Taxable.

Introduction of Tax on Dividends.

Increase in Service Tax rates: The spread of Service.

Non Reintroduction of Section 80 L.

RILs MoU with Dow chemical.

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2007-08
Factors which affect heavily in the yea 2007-08 are as follows:

Hike in the CRR and Rapo rate.

Announcement of monetary policy.

GDP Growth rate at 9.4 percent 18 years high.

Higher growth in manufacturing and service sectors.

Investment pattern of FIIs.

Decrease in inflation rate.

Positive forecasting of monsoon.

Positive sentiments from global market.

Listing with a bang of DLF and Vishal retail.

Strengthening of Japanese Yen and US dollar and Euro.

SBI announced merger with one of the associates State Bank of Saurastra.

Appreciation of rupee value.

Diwali and second quarter result.

Hike in CRR to 7.5 per cent.

Higher crude oil price(crossed $ 100).

Subprime in the US country.

Poor Listing of Reliance Power.

Poor industrial growth data.

Union Budget of P.Chindambaram.

Announcement of agriculture loan waiver `60,000 crores.

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2008-09
Factors which affect heavily in the yea 2008-09 are as follows:

Citi Groups loss of $5.1 Billion.

Good third quarter result.

Higher crude oil price($127/barrel)

Higher inflation rate(8 per cent)

The debacle of UPA government in Karnataka assembly election.

Ranbaxys acquisition with Japanese based firm Daiichi Sankyo

Advance tax payment.

Threat of fall of UPA government over the nuclear issue.

Poor IIP numbers.

Negative sentiment of global economy.

Financial crisis in US and European country.


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Cut in CRR and repos.

Selection of Barak Obama in US election.

Terrorist Attack on Mumbai Taj Hotel.

US had official accept the recession in their economy.

Decline in export of 1201 per cent.

US government had announced $1 trillion bailout package.

Satyam Scandal (Fraud)

Union Budget.

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2009-10

Recovery in global market.

FIIs investment.

Loksabha Election.\

GDP growths.

Good monsoon.

Union Budget make the recovery at last.

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2010-11

Starting with good result of Indian corporate.

Heavily investment of FIIs in Indian bourses

Goldman Sachs controversy makes all the financial market floundering at the end of the
month.

Crisis in European country make fall in the Sensex

Fear of higher inflation rate(13.73 per cent).

Higher industrial production.

Acquisitions, Mergers, IPOs, new orders make rise in the Sensex.

Less than expected hike in interest rate.

Opening ceromany of CWG proves that india is economically powerful.

Dismal IIP numbers.

Industrial growth was declined to 4.4 per cent.

Higher inflation rate.

RBIs quarterly review of credit policy.

Announcement of Union Budget.

Tsunami in Japan.

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Chapter 8
Limitations of the study
8.1 The study can be done for larger period only, lower tenure dont give good results
8.2 Perfect data for the study cant captured from this sorter period
8.3 The time Period which is given for study is very sorter.

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Chapter 9
Conclusion
India has been witness to a four-year up and down cycle in the stock markets. Since 1992, the
Indian markets have peaked every fourth year and then dropped 35-45% during the next three
years. What is surprising though is that the Dalal Street has bucked the trend this time around.
Some of the major conclusions derived in the study are as under.

Declaration of any financial result and other information of the company has direct effect
on its stock price.

News related to any political and economical affair has also the direct effect on stock
market.

Fluctuation in crude oil prices.

Fluctuation in interest rate

Change in monitory policy.

Change in various rates like CRR & SLR.

Global economy

The fluctuation in the market is the result of multi dimension impact of multiple factors more
affects are line with each other sometime directly or some time indirectly. The present study
an attempt has made to cover the major obvious factors that could be some more factors may
be note directly not related but indirectly related can also have some bearing the phenomena
of fluctuation. It is a complete phenomenon where the permutation and combination or the
factors are constantly changes.
The analysis provides history in major which was serve as guide post studying and
forecasting the trends
In short, the following hypothesis have been tested and proved positive.

Any fluctuation in foreign market has more effect on Indian stock market than that of
domestic market.

In the given volatile economic conditions, the market is efficient to any news and
information.
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Chapter 10
Recommendations
After this study, I would like to give following recommendations, which can help to the
Investors, Brokers and SEBI and the policy makers in general.

INVESTORS

I would suggest that Long term Investors should not invest into panic market, which led
investors to erode their wealth.

It must be remembered that Long-term investors should go for frontline stocks, which
helps to keep their income regular and steady.

I would also suggest that Investors should take into consideration various things before
investing into scripts such as:

Long term growth prospect in company

Financial positions of company

Liquidity position

Dividend policy

Past performance of company

SEBI

SEBI should come out with new regulation in context of circuit breakers.

SEBI should monitor HNI transactions in domestic as well as global market.

SEBI should issue regularly draft containing penalty details on defaulters to keep market
less speculative

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Chapter 11
Bibliography
11.1 Magazines
11.1.1 Capita market March 27-April 2006 page no. 13.
11.1.2 Capita market May 22-June 4 2006 page no.76-78.
11.1.3 Capita market July 3-July 16 2006 page no. 20.
11.1.4 Capita market Sept 25-Oct 8 2006 page 16.

11.2Web Sites
11.2.1 http://www.sandesh.com/sandesh_article.aspx?newsid=173903
11.2.2 http://www.dsij.in/OnlineEditions/DSIJEnglish/archives/2008/Vol%2023,Issue

%206,16-Mar-08/all%20pages%20issue/All%20pages%20Issue00027.html?
zoomlevel=100
11.2.3 http://www.topnews.in/reliance-power-trading-below-its-listing-price-bse-nse

220006
11.2.4 http://www.dsij.in/OnlineEditions/DSIJEnglish/archives/2008/Vol%2023,Issue

%2018,31-Aug-08/All%20Pages%20Issue/All%20pages%20Issue00034.html?
zoomlevel=100
11.2.5 http://www.gov.cn/english/2010-12/14/content_1765641.htm
11.2.6 http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1417785
11.2.7 http://www.bseindia.com/histdata/categorywise_turnover.asp
11.2.8http://www.bankingonly.com/index.php?page=rapo_rate.php
11.2.9http://www.mospi.gov.in/mospi_iip.htm
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11.3 News Papers


11.3.1. Business standard
11.3.2. Financial express
11.3.3. Economic times
11.3.4. Times of India
11.3.5. Sandesh Surat Eddition

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