Transcript India Stock markets

Stock markets in India
Emerging Asia: This links
with WJEC A2 Geography
Theme India.
1.2 How and why is the
economy changing ? Factors
affecting the growth of
financial industries
India: The big picture
Measure of development
India
Population
1.1 billion
Population growth rate
1.38%
GDP
$ 3.161 trillion
GDP per capita
$ 3.300
GDP growth
7.6%
Land area
2,937,190 sq km
Unemployment
9.9%
Internet users
50.6 million
Random Commercial facts
Are these points significant to a consideration of Indian commerce
and trade? If so, why?
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Nokia have 78% of the mobile handset market in India
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20 million Indians live in countries other than India
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17,000 Indian citizens attend British universities each year
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Currently there are 9 million university students in India
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A considerable proportion of India’s budget for scientific
research is spent on defence and military applications
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India is in the top 14 markets for pharmaceutical products
such as medical drugs and its market position is rising.
India Stock markets
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India's stock markets have been on the rise since
May 2004.
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The benchmark Bombay Stock Exchange (BSE) index,
the Sensex, has shot up by over 100% to cross 9,000
points for the first time in its history.
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Buyers, like the aggressive foreign institutional
investors who have pumped in more than $10bn this
calendar year, are excited about India's growing
economic strength.
India Stock markets
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Others are convinced that the
economy is fundamentally
strong
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They believe that the country's
financial markets are more
mature than those of other
emerging economies.
India Stock markets
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Many believe that the Sensex
is proof of India's economic
strength.
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Most global reports have
indicated that the Indian
economy will be larger than
the developed ones, except
China, in the next few
decades.
India Stock markets 4
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But this logic falls flat when one
realises that, unlike the Dow or
Footsie, less than 5% of Indian
companies are listed on Indian
stock exchanges.
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A better indication of the health
of India's economy would be the
collective movement of the 2,500
shares that are regularly traded,
rather than the Sensex.
What have you learned?
Summarise the key
issues in your own
words