Friday, March 6, 2009

Abstract

Meltdown of Indian Capital Market

By:- Mayank Mittal, M. Shakir, Nihal Khursid, Reshma Hussain and Farha Khalid1


Indian economy is integrated with the global economy and as a result it has been affected by global recession. Over the last few months we have seen that the world has gone through its worst financial crises. The world leading investment banks have gone bankrupt.
What are the different reasons behind this global recession? Why India is affected? Why did Stock markets collapse and what are the factors behind the daily fluctuations? How can India get back its development pace again? What can be the Imperatives & Strategies for Indian Businesses to come out from these conditions?
This recessionary period has generated an environment of uncertainty in the capital market of all over the world. Although India is affected much less than expected by the global recession, almost all of the Indian business sectors are facing problem. The recession led to job lay-offs. Companies are rolling back their major projects and expansion plans. Investors are pulling their hands from Indian capital market. FDIs and FIIs are getting affected by this recession.
This paper attempts to analyze the different reasons behind the global recession. It further assesses the effects of the global recession on Indian Capital Market.

Key Words: Global Recession, Financial Crises, Indian Capital Market, FDI, FIIs, NINJA.
1. Students of M. B. A. First Year of Al-Barkaat Institute of Management Studies, Aligarh