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FINDINGS

Practical situation

During my training internship I had experience of real practical situation in the stockMarket andin an Organization.

End of June 2009 turned out to be favorable for Indian stock markets. The first fewsessions saw optimism in the market on the hope that the government will make policyannouncements in the budget. However, the market corrected soon after theannouncement of budget due to absence of major policy announcements. Thesentiments remained negative during following few sessions. However, the marketpicked momentum from mid of the month. This was helped by better-than- expectedcorporate earnings, huge overseas inflows and encouraging global cues. The buoyancyin the market continued in the second half helping the BSE Sensex to touch highest inmore than a year towards the month end. On the whole, the market closed on a strongnote.

Global stocks rallied over the month on encouraging economic data and earnings

reports. The MSCI AC World Index gained 8.70%, where as the MSCI EmergingMarkets Index climbed 10.86% during the month. The performance of Indian marketswas in line with the global counterparts. The Sensex settled the month with a gain of

8.12%, while the Nifty registered a rise of 8.05%. The BSE Mid and Small capsperformance was in line with their larger counterparts, gaining 9.74% and 8.11%respectively over the month.Sector Performance

All the BSE Sectoral indices wrapped the month with gains except Capital Goods.Intense buying spree was seen in Auto, Realty, FMCG and IT indices, which posted

gains of over 20%. Metal, Teck, Health Care and Consumer Durable indices wereamong other top gainers whereas Oil & Gas index posted a marginal rise over themonth.

Institutional Activities

The FIIs flow remained positive in equities with net inflows of Rs 11,625 crores (USD2.40 bn) during the month. The domestic MFs were also net buyers with inflows of Rs1,825.50 crores (USD 381 mn) during the month.

Major Corporate Events

Infosys Technologies announced a 17.28% y-o-y rise in consolidated net profit for thequarter ended June 2009 to Rs 1,527 crores (USD 318.59 mn). Income from operationsfor the quarter climbed 12.73% y-o-y to Rs 5,472 crores (USD 1.14 bn).

Reliance Industries reported a drop of 11.53% y-o-y in net profit for the quarter endedJune 2009 to Rs 3,636 crores (USD 758.60 mn). Total income for the quarter slipped21.64% y-o-y to Rs 32,757 crores (USD 6.83 bn).

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Steel Authority of India earmarked Rs 59,800 crores (USD 12.48 bn) capex plan. Itincludes ongoing modernization and expansion, value addition, technology up-gradationand sustenance. Of the total capex plan, Rs 10,000 crores (USD 2.10 bn) will be spentduring 2009-10.

Punj Lloyd along with its group companies bagged orders worth Rs 10,250 crores

(USD 2.14 bn) during the month. It reported a 27% y-o-y rise in consolidated profit aftertax for the quarter ended June 2009 to Rs 125 crores (USD 26.1 mn). Consolidatedrevenues for the quarter climbed 12% y-o-y to Rs 2,658 crores (USD 554.56 mn).

Key Macro Developments

Industrial production continued to remain positive in May 2009, with a growth of 2.7%.Core sectors registered a growth of 6.5% for June 2009. Exports growth continued todrop for a ninth consecutive month. In dollar terms, exports plunged 27.70% to USD12.81 billion, however, in rupee terms, it dropped 17.40% to Rs 61,217 crores duringJune 2009. Meanwhile, oil prices slipped marginally 0.63% over the month to USD 69.45a barrel.

OutlookOn the international front, the markets will track developments and key economic datafrom US,China and Japan. The exit strategy of the central banks will also have bearingon the global markets. On the other hand, the Indian markets will be driven by theprogress of monsoon, policyannouncements from the government and key economicdata. Overall quarterly corporate earnings performance was better than the marketexpectations. The market is now hoping for better earnings growth prospects for FY2010. Themanufacturing growth has also started showing signs of improvement.

Now, with signs of economic recovery in developed countries and improvement in risk appetiteglobally, the funds will flow in the emerging markets like India in search of higher growth. Thiscoupled with encouraging earnings outlook for FY2010, provides good opportunity for investorsto take active participation in the market and increase the equity allocation from long termperspective.