Security and Portfolio Management

Assignment on The Potential of Indian Stock Market to be of the top among Global market

Submitted by Submitted to

Irshad Hussain Mrs. Navleen Kaur

Enroll no . A1802009459

Sec - C

Amity international Business School

Indian Stock Market

Introduction

The Indian stock exchanges hold a place of prominence not only in Asia but also at the global stage. The Bombay Stock Exchange (BSE) is one of the oldest exchanges across the world, while the National Stock Exchange (NSE) is among the best in terms of sophistication and advancement of technology. The Indian stock market scene really picked up after the opening up of the economy in the early nineties. The whole of nineties were used to experiment and fine tune an efficient and effective system. The ‘badla’ system was stopped to control unnecessary volatility while the derivatives segment started as late as 2000. The corporate governance rules were gradually put in place which initiated the process of bringing the listed companies at a uniform level. On the global scale, the economic environment started taking paradigm shift with the ‘dot com bubble burst’, 9/11, and soaring oil prices. The slowdown in the US economy and interest rate tightening made the equation more complex.

However after 2000 riding on a robust growth and a maturing economy and relaxed regulations,

outside investors- institutional and others got more scope to operate. This opening up of the system led to increased integration with heightened cross-border flow of capital, with India emerging as an investment ‘hot spot’ resulting in our stock exchanges being impacted by global cues like never before.

Savings and investment are two key macro variables which play a significant role in economic growth. Global emerging economies are experiencing record savings at a time when the developed world has been witnessing a decline in gross domestic saving rates.

Needless to say over here, that the best way to streamline the savings is...