1. Executive Summary
The report encompasses the project undertaken with Edelweiss Financial Securities Ltd
under the guidance of Mr. Om Sadani as part of Summer Internship.
It gives the details of what is National Stock Exchange (N.S.E) and Bombay Stock Exchange
(B.S.E) actually means. It also gives a brief about Edelweiss Financial Securities Ltd. The
report contains the details of the work performed at the Edelweiss and some responsibilities
under taken.
The report takes into consideration the following parameters i.e.:
 Equity Research
 Daily Market Analysis Report
 Daily Sector Comparison Report
It provides with the basic of how online trading is done. It also gave a brief introduction to
Indian Stock markets and its comparison with the international market. It also provided
information on global markets which is being highlighted in this report.
Through this project we also came to know about the comparison between the sectors for
example in this project comparison between Banking and IT sector have taken in to
consideration. We also learned about option, futures, forwards and swaps. This project also
highlights the behavior of investors towards a particular sector in BSE and NSE. This project
gives us information about the how volatile ours share market is and how the trend of a
particular sector and Equity Stock changes in a given period. This project also highlights
different sectors. Through this project we also came to known about portfolio management
services.
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2. Company Profile
Edelweiss Tokio Financial Services
Edelweiss Tokio Life Insurance is a new generation Insurance company, set up with a start up
capital of INR 550 Crores, thereby showing our commitment to building a long term sustainable
business focused on a consumer centric approach.
The company is a joint venture between Edelweiss Financial Services, one of India's leading
diversified financial services companies with business straddling across Credit, Capital Markets,
Asset Management, Housing finance and Insurance and Tokio Marine Holdings Inc, one of the
oldest and the biggest Insurance companies in Japan now with presence across 39 countries
around the world.
As a part of the company‘s corporate philosophy of customer centricity, our products have been
developed based on our understanding of Indian customers‘ diverse financial needs and help them
through all their life stages
Since its inception in 1996, Edelweiss has seamlessly grown into a large diversified
financial services organization offering businesses ranging from Credit, Capital Market,
Asset management, Housing Finance and Insurance. Currently, the groups networth is in
excess of INR 2,800 Crores. Over the last decade, Edelweiss revenue has grown at a CAGR
of 63% and net profit has grown at a CAGR of 76% (till the end of FY 11).
Present across 308 offices in 140 cities, the group, with over 2800 employees, and services
a client base of more than 3,50,000 (Sept 11).
The Groups core brand philosophy, Ideas Create, Values Protect is translated into an
approach that is led by entrepreneurship and creativity, protected by intellectual rigour,
research and analysis. Edelweiss has been recognized as a Business Super brand in the year
2011 by Super Brands India, testimony to the reputation enjoyed by the brand.
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3. Tokio Marine
Tokio Marine Holdings Inc, the holding company for Tokio Marine group is one of the
oldest and biggest Insurance companies in Japan; with interests in Life, Non-Life, and Re-
Insurance, it has a presence in 427 cities across 39 countries around the world.
The company has over 130 years of operational history in the Non-Life sector while it has
been in Life Insurance since 1996. It has a presence in Japan, China, Singapore, Malaysia
and Thailand.
The Group has booked revenues of INR 1,77,650 Crore and Net Income of INR 3,884
Crore.
In Life Insurance its Gross Written Premium (GWP) is over INR 31,834 Crore.
A highly respected company around the world, Tokio Marine adheres to Japanese high
standards of quality and a robust corporate governance and risk management framework.
Tokio Marine has a successful track record of building business in developing and
developed markets due to its superior capability of developing products based on research
and consumer understanding.
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4. Financial services by Edelweiss Tokio
Capital Market
 Investment Banking
 Institutional Broking
 Wealth Management
 Financial Planning
Asset Management
 Mutual fund
 Alternative asset advisory
Insurance
 Edelweiss tokio life
Credit
 Corporate credit
 Retail credit
Housing Finance
 Home lones
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5. LITERATURE REVIEW
The Indian stock market provides a unique perspective for analyzing comovements and stock
market integrationbecause of its burgeoning economy and its subsequent linkages to other
economies. For instance, Modi et al.(2010) examined the stock market indices of India, Hong
Kong, China, Mexico, Brazil, the UK, and the UnitedStates from July 1, 1997, to June 30, 2008.
Using a multivariate analysis consisting of co-integration and principalcomponent analysis, they found that
low correlations exist between Indian stock markets and Mexico, the UK,and the United States.Modi et
al. also found that the lowest correlations exist between the India (SENSEX) andU.S.
(NASDAQ) stock exchanges.
The implications are that investors can diversify their portfolios by investingin stocks listed on
the SENSEX and NASDAQ simultaneously.Wong et al. (2004) observed this relationship by evaluating the
long run and short run relationship and linkagesbetween the Indian Stock Exchange (BSE 200) and
the United States (S&P 500), Japan (Nikkei 225), and UK(FTSE 100) from January 1, 1991,
to December 31, 2003. Wong et al. found that the Indian stock market isintegrated with
developed markets and sensitive to dynamics in these markets in the long run. The researchersalso found
that short-run stock returns in the United States and Japan Granger cause Indian stock
markets but notthe opposite. Granger causality is a technique that examines the relationship
between two or more time series byexamining whether times series are co-integrated over
both the short and long run. Valadkhani,Chancharat, andHarvie (2008) studied the
relationships between the stock market returns of 13 countries using principlecomponent
analysis.
Monthly data from 1987 to 2007 was examined for correlations using Morgan
StanleyCapital International Database. Valadkhaniet al. found that high correlations exist
between countries located in thesame geographic region primarily Asia. Additionally, a correlation were
found to be high in developing countriesas well.These findings suggest that geographic and economic
development do matter with respect to comovements of stock returns and has implications for financial
portfolio diversification and reducing systemic risk. In otherwords, high correlations depict
less diversification opportunities. The implications are that investors should
seek diversification opportunities where correlations are low. Likewise, Jin (2005) observed
this relationship betweenShanghai, Hong Kong, and Taiwan markets. Daily, weekly, and
monthly data were retrieved from three indices inhost countries from July 1997 to December
2001.The findings revealed that the Hong Kong and Taiwan stock markets are highly correlated while
the correlations among Hong Kong, Taiwan, and Shanghai were not, eventhough economic
integration was shown by examining trade.
The researcher further suggests that the Chinesegovernment avoid interfering with the market
and allow the market to perform accordingly. He also found that thelack of correlation among
Shanghai, Hong Kong, and Taiwan depicts that investors are able to diversify theirportfolios by investing in
Shanghai and Hong Kong or Shanghai and Taiwan stock markets simultaneously.Economic integration
allows investors to diversify their portfolios. However, economic integration is not the onlyfactor that
affects co-movements.
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6. Global events and financial crises also affect comovements.For instance, I. Meric, Ratner,
Nygren, and Gulser (2007) compared the comovements of seven Latin Americancounties
with the U.S. and Canadian equity markets 5 years before September 11, 2001, and 5 years
afterSeptember 11, 2001, using maximum likelihood, principal component analysis (PCA),
and Granger causality.They found that equity markets changed significantly pre-September
11 and post-September 11. The PCAindicated that all nine equity markets changed after
September 11. I. Meric et al. also found Granger causalitydepicted that the lead/lag
relationship changed significantly after September 11. I. Mericetal. found thatdiversification
benefits diminished after September 2001in these stock markets and reduced the advantages
of global portfolio diversification.
Article by
International Journal of Business and Social Science Vol. 3 No. 3; February 2012
COMOVEMENTS AND STOCK MARKET INTEGRATION BETWEEN INDIA AND ITS
TOPTRADING PARTNERS: A MULTIVARIATE ANALYSIS OF INTERNATIONAL
PORTFOLIODIVERSIFICATION
Alan Harper, Ph.D.
College of BusinessSouth UniversityVirginia Beach, Virginia 23464USA
Zhenhu Jin, Ph.D.
College of BusinessValparaiso UniversityValparaiso, Indiana 46385USa
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7. RATIONALE FOR THE STUDY
In an industry plagued with skepticism and a stock market increasingly difficult to predict
and contend with, if one looks hard enough there may still be a genuine aid for the Day
Trader and Short Term Investor.
The price of a security represents a consensus. It is the price at which one person agrees to
buy and another agrees to sell. The price at which an investor is willing to buy or sell depends
primarily on his expectations. If he expects the security's price to rise, he will buy it; if the
investor expects the price to fall, he will sell it. These simple statements are the cause of a
major challenge in forecasting security prices, because they refer to human expectations. As
we all know firsthand, humans expectations are neither easily quantifiable nor predictable.
If prices are based on investor expectations, then knowing what a security should sell for (i.e.,
fundamental analysis) becomes less important than knowing what other investors expect it to
sell for. That's not to say that knowing what a security should sell for isn't important--it is.
But there is usually a fairly strong consensus of a stock's future earnings that the average
investor cannot disprove
Fundamental analysis and technical analysis can co-exist in peace and complement each
other. Since all the investors in the stock market want to make the maximum profits possible,
they just cannot afford to ignore either fundamental or technical analysis.
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8. OBJECTIVES OF THE STUDY
Primary Objective:
To do equity analysis & Sector analysis
Sub-Objectives:.
a) To understand the movement and performance of stocks.
b) Comparison between banking & IT sector.
c) To recommend increase/decrease of investment in a particular security
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9. INTRODUCTION TO BOMBAY STOCK EXCHANGE (B.S.E)
The Bombay Stock Exchange (BSE) (Bombay Śhare Bāzaār) (formerly, The Stock
Exchange, Bombay) is a stock exchange located on Dalal Street, Mumbai and is the oldest
stock exchange in Asia. The equity market capitalization of the companies listed on the BSE
was US$1 trillion as of December 2011, making it the 6th largest stock exchange in Asia and
the 14th largest in the world The BSE has the largest number of listed companies in the
world.
As of March 2012, there are over 5,133 listed Indian companies and over 8,196 scrips on the
stock exchange, the Bombay Stock Exchange has a significant trading volume. The BSE
SENSEX, also called "BSE 30", is a widely used market index in India and Asia. Though
many other exchanges exist, BSE and the National Stock Exchange of India account for the
majority of the equity trading in India. While both have similar total market capitalization
(about USD 1.6 trillion), share volume in NSE is typically two times that of BSE
BSE Limited is the oldest stock exchange in Asia What is now popularly known as the BSE
was established as "The Native Share & Stock Brokers' Association" in 1875.
Over the past 135 years, BSE has facilitated the growth of the Indian corporate sector by
providing it with an efficient capital raising platform.
Today, BSE is the world's number 1 exchange in the world in terms of the number of listed
companies handled through its electronic trading system. And it is in the top ten of global
exchanges in terms of the market capitalization of its listed companies (as of December 31,
2009). The companies listed on BSE command a total market capitalization of USD Trillion
1.28 as of Feb, 2010.
BSE is the first exchange in India and the second in the world to obtain an ISO 9001:2000
certification. It is also the first Exchange in the country and second in the world to receive
Information Security Management System Standard BS 7799-2-2002 certification for its BSE
On-Line trading System (BOLT). Presently, we are ISO 27001:2005 certified, which is a ISO
version of BS 7799 for Information Security.
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10. The BSE Index, SENSEX, is India's first and most popular Stock Market benchmark index.
Exchange traded funds (ETF) on SENSEX, are listed on BSE and in Hong Kong. Futures and
options on the index are also traded at BSE. (over 4900). It is the world's 5th most active in
terms of number of transactions
Hours of operation
Session Timing
Beginning of the Day Session 8:30 - 9:00
Pre-open trading session 9:00 - 9:15
Trading Session 9:15 - 15:30
Position Transfer Session 15:30 - 15:50
Closing Session 15:50 - 16:05
Option Exercise Session 16:05 -
The hours of operation for the BSE quoted above are stated in terms the local time (GMT +
5:30). BSE's normal trading sessions are on all days of the week except Saturday, Sundays
and holidays declared by the Exchange in advance.
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11. History
The Bombay Stock Exchange is the oldest exchange in Asia. It traces its history to the 1850s,
when four Gujarati and one Parsi stockbroker would gather under banyan trees in front of
Mumbai's Town Hall. The location of these meetings changed many times, as the number of
brokers constantly increased. The group eventually moved to Dalal Street in 1874 and in
1875 became an official organization known as 'The Native Share & Stock Brokers
Association'.
In 1956, the BSE became the first stock exchange to be recognized by the Indian Government
under the Securities Contracts Regulation Act. The Bombay Stock Exchange developed the
BSE SENSEX in 1986, giving the BSE a means to measure overall performance of the
exchange. In 2000 the BSE used this index to open its derivatives market, trading SENSEX
futures contracts. The development of SENSEX options along with equity derivatives
followed in 2001 and 2002, expanding the BSE's trading platform. Historically an open
outcry floor trading exchange, the Bombay Stock Exchange switched to an electronic trading
system in 1995.
It took the exchange only fifty days to make this transition. This automated, screen-based
trading platform called BSE On-line trading (BOLT) currently has a capacity of 8 million
orders per day. The BSE has also introduced the world's first centralized exchange-based
internet trading system, BSEWEBx.co.in to enable investors anywhere in the world to trade
on the BSE platform. The BSE is currently housed in Phiroze Jeejeebhoy Towers at Dalal
Street, Fort area.
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12. Timeline
Following is the timeline on the rise of the SENSEX through Indian stock market history.
1830's Business on corporate stocks and shares in Bank and Cotton presses started in
Mumbai.
1860-1865 Cotton price bubble as a result of the American Civil War.
1870 - 90's Sharp increase in share prices of jute industries followed by a boom in tea stocks
and coal
1978-79 Base year of SENSEX, defined to be 100.
1986 SENSEX first compiled using a market Capitalization-Weighted methodology for 30
component stocks representing well-established companies across key sectors.
30 October 2006 The SENSEX on October 30, 2006 crossed the magical figure of 13,000
and closed at 13,024.26 points, up 117.45 points or 0.9%. It took 135 days for the SENSEX
to move from 12,000 to 13,000 and 123 days to move from 12,500 to 13,000.
5 December 2006 The SENSEX on December 5, 2006 crossed the 14,000-mark to touch
14,028 points. It took 36 days for the SENSEX to move from 13,000 to the 14,000 mark.
6 July 2007 The SENSEX on July 6, 2007 crossed the magical figure of 15,000 to touch
15,005 points in afternoon trade. It took seven months for the SENSEX to move from 14,000
to 15,000 points.
19 September 2007 The SENSEX scaled yet another milestone during early morning trade
on September 19, 2007. Within minutes after trading began, the SENSEX crossed 16,000,
rising by 450 points from the previous close. The 30-share Bombay Stock Exchange's
sensitive index took 53 days to reach 16,000 from 15,000. Nifty also touched a new high at
4659, up 113 points. The SENSEX finally ended with a gain of 654 points at 16,323. The
NSE Nifty gained 186 points to close at 4,732.
26 September 2007 The SENSEX scaled yet another height during early morning trade on
September 26, 2007. Within minutes after trading began, the SENSEX crossed the 17,000-
mark. Some profit taking towards the end saw the index slip into red to 16,887 - down 187
points from the day's high. The SENSEX ended with a gain of 22 points at 16,921.
9 October 2007 The BSE SENSEX crossed the 18,000-mark on October 9, 2007. It took just
8 days to cross 18,000 points from the 17,000 mark. The index zoomed to a new all-time
intra-day high of 18,327. It finally gained 789 points to close at an all-time high of 18,280.
The market set several new records including the biggest single day gain of 789 points at
close, as well as the largest intra-day gains of 993 points in absolute term backed by frenzied
buying after the news of the UPA and Left meeting on October 22 put an end to the worries
of an impending election
.
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13. 15 October 2007 The SENSEX crossed the 19,000-mark backed by revival of funds-based
buying in blue chip stocks in metal, capital goods and refinery sectors. The index gained the
last 1,000 points in just four trading days. The index touched a fresh all-time intra-day high of
19,096, and finally ended with a smart gain of 640 points at 19,059.The Nifty gained 242
points to close at 5,670.
29 October 2007 The SENSEX crossed the 20,000 mark on the back of aggressive buying by
funds ahead of the US Federal Reserve meeting. The index took only 10 trading days to gain
1,000 points after the index crossed the 19,000-mark on October 15. The major drivers of
today's rally were index heavyweights Larsen and Toubro, Reliance Industries, ICICI Bank,
HDFC Bank and SBI among others. The 30-share index spurted in the last five minutes of
trade to fly-past the crucial level and scaled a new intra-day peak at 20,024.87 points before
ending at its fresh closing high of 19,977.67, a gain of 734.50 points. The NSE Nifty rose to a
record high 5,922.50 points before ending at 5,905.90, showing a hefty gain of 203.60 points.
8 January 2008 The SENSEX peaks. It crossed the 21,000 mark in intra-day trading after 49
trading sessions. This was backed by high market confidence of increased FII investment and
strong corporate results for the third quarter. However, it later fell back due to profit booking.
13 June 2008 The SENSEX closed below 15,200 mark, Indian market suffer with major
downfall from January 21, 2008
25 June 2008 The SENSEX touched an intra day low of 13,731 during the early trades, then
pulled back and ended up at 14,220 amidst a negative sentiment generated on the Reserve
Bank of India hiking CRR by 50 bps. FII outflow continued in this week.
2 July 2008 The SENSEX hit an intra day low of 12,822.70 on July 2, 2008. This is the
lowest that it has ever been in the past year. Six months ago, on January 10, 2008, the market
had hit an all time high of 21206.70. This is a bad time for the Indian markets, although
Reliance and Infosys continue to lead the way with mostly positive results.
6 October 2008 The SENSEX closed at 11801.70 hitting the lowest in the past 2 years.
10 October 2008 The SENSEX today closed at 10527, 800.51 points down from the previous
day having seen an intraday fall of as large as 1063 points. Thus, this week turned out to be
the week with largest percentage fall in the SENSEX.
19 October 2010 BSE introduced the 15-minute special pre-open trading session, a
mechanism under which investors can bid for stocks before the market opens. The
mechanism, known as 'pre-open session call auction', lasted for 15 minutes (from 9:00-9:15
am)
5 November 2010 BSE SENSEX crossed the 21000 mark (exactly 21004.96).
27 December 2010 BSE SENSEX is at 20,028.93.
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14. Indices
The launch of SENSEX in 1986 was later followed up in January 1989 by introduction of
BSE National Index (Base: 1983-84 = 100). It comprised 100 stocks listed at five major stock
exchanges in India - Mumbai, Calcutta, Delhi, Ahmedabad and Madras. The BSE National
Index was renamed BSE-100 Index from October 14, 1996 and since then, it is being
calculated taking into consideration only the prices of stocks listed at BSE.
BSE launched the dollar-linked version of BSE-100 index on May 22, 2006. BSE launched
two new index series on 27 May 1994: The 'BSE-200' and the 'DOLLEX-200'. BSE-500
Index and 5 sectoral indices were launched in 1999. In 2001, BSE launched BSE-PSU Index,
DOLLEX-30 and the country's first free-float based index - the BSE TECk Index.
Over the years, BSE shifted all its indices to the free-float methodology (except BSE-PSU
index). BSE disseminates information on the Price-Earnings Ratio, the Price to Book Value
Ratio and the Dividend Yield Percentage on day-to-day basis of all its major indices. The
values of all BSE indices are updated on real time basis during market hours and displayed
through the BOLT system, BSE website and news wire agencies.
All BSE Indices are reviewed periodically by the BSE Index Committee. This Committee
which comprises eminent independent finance professionals frames the broad policy
guidelines for the development and maintenance of all BSE indices. The BSE Index Cell
carries out the day-to-day maintenance of all indices and conducts research on development
of new indices. 2011 SENSEX is significantly correlated with the stock indices of other
emerging markets.
The graph of SENSEX from July 1997 to March.
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15. Awards
The World Council of Corporate Governance has awarded the Golden Peacock
Global CSR Award for BSE's initiatives in Corporate Social Responsibility (CSR).
The Annual Reports and Accounts of BSE for the year ended March 31, 2006 and
March 31, 2007 have been awarded the ICAI awards for excellence in financial
reporting.
It has been cited as one of the world's best performing stock market by Reuters.
The Human Resource Management at BSE has won the Asia - Pacific HRM awards
for its efforts in employer branding through talent management at work, health
management at work and excellence in HR through technology. Bombay Stock
Exchange - Finance Learners
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16. INTRODUCTION TO NATIONAL STOCK EXCHANGE (N.S.E)
The National Stock Exchange (NSE) (Hindi: Rashtriya Śhare Bāzaār) is a
stock exchange located at Mumbai, India. It is the 16th largest stock exchange in the world by
market capitalization and largest in India by daily turnover and number of trades, for both
equities and derivative trading. NSE has a market capitalization of around US$985 billion
and over 1,646 listings as of December 2011. Though a number of other exchanges exist,
NSE and the Bombay Stock Exchange are the two most significant stock exchanges in India,
and between them are responsible for the vast majority of share transactions. The NSE's key
index is the S&P CNX Nifty, known as the NSE NIFTY (National Stock Exchange Fifty), an
index of fifty major stocks weighted by market capitalisation.
NSE is mutually owned by a set of leading financial institutions, banks, insurance companies
and other financial intermediaries in India but its ownership and management operate as
separate entities. There are at least 2 foreign investors NYSE Euronext and Goldman Sachs
who have taken a stake in the NSE. As of 2006, the NSE VSAT terminals, 2799 in total,
cover more than 1500 cities across India. NSE is the third largest Stock Exchange in the
world in terms of the number of trades in equities. It is the second fastest growing stock
exchange in the world with a recorded growth of 16.6%.
The National Stock Exchange (NSE) is India's leading stock exchange covering various cities
and towns across the country. NSE was set up by leading institutions to provide a modern,
fully automated screen-based trading system with national reach. The Exchange has brought
about unparalleled transparency, speed & efficiency, safety and market integrity. It has set up
facilities that serve as a model for the securities industry in terms of systems,
practices&procedures.
NSE has played a catalytic role in reforming the Indian securities market in terms of
microstructure, market practices and trading volumes. The market today uses state-of-art
information technology to provide an efficient and transparent trading, clearing and
settlement mechanism, and has witnessed several innovations in products & services viz.
demutualisation of stock exchange governance, screen based trading, compression of
settlement cycles, dematerialisation and electronic transfer of securities, securities lending
and borrowing, professionalization of trading members, fine-tuned risk management systems,
emergence of clearing corporations to assume counterparty risks, market of debt and
derivative instruments and intensive use of information technology.
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17. Origins
The National Stock Exchange of India was set up by Government of India on the
recommendation of Pherwani Committee in 1991.Promoted by leading Financial institutions
essentially led by IDBI at the behest of the Government of India, it was incorporated in
November 1992 as a tax-paying company. In April 1993, it was recognized as a stock
exchange under the Securities Contracts (Regulation) Act, 1956. NSE commenced operations
in the Wholesale Debt Market (WDM) segment in June 1994. The Capital market (Equities)
segment of the NSE commenced operations in November 1994, while operations in the
Derivatives segment commenced in June 2000.
Purpose
Committed to improve the financial well-being of people.
Vision
To continue to be a leader, establish global presence, facilitate the financial well being of
people.
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18. Values
NSE is committed to the following core values :
Integrity
Customer focussed culture
Trust, respect and care for the individual
Passion for excellence
Teamwork
Markets
Currently, NSE has the following major segments of the capital market:
Equity
Futures and options
Retail debt market
Wholesale debt market
Currency futures
Mutual fund
Stocks lending and borrowing
In August 2008 currency derivatives were introduced in India with the launch of Currency
Futures in USD INR by NSE. Currently it has also launched currency futures in euros,
pounds and yen. Interest Rate Futures were introduced for the first time in India by NSE on
31 August 2009, exactly one year after the launch of Currency Futures.
NSE became the first stock exchange to get approval for interest rate futures, As
recommended by SEBI-RBI committee, on 31 August 2009, a futures contract based on 7%
10 Year Government of India (Notional) was launched with quarterly maturities.
Hours
NSE's normal trading sessions. 9:15 AM TO 3:15(3:30) pm
Milestones
November 1992 Incorporation
April 1993 Recognition as a stock exchange
May 1993 Formulation of business plan
June 1994 Wholesale Debt Market segment goes live
November 1994 Capital Market (Equities) segment goes live
March 1995 Establishment of Investor Grievance Cell
April 1995 Establishment of NSCCL, the first Clearing Corporation
June 1995 Introduction of centralised insurance cover for all trading members
July 1995 Establishment of Investor Protection Fund
October 1995 Became largest stock exchange in the country
April 1996 Commencement of clearing and settlement by NSCCL
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19. April 1996 Launch of S&P CNX Nifty
June 1996 Establishment of Settlement Guarantee Fund
November 1996 Setting up of National Securities Depository Limited, first depository
in India, co-promoted by NSE
November 1996 Best IT Usage award by Computer Society of India
December 1996 Commencement of trading/settlement in dematerialised securities
December 1996 Dataquest award for Top IT User
December 1996 Launch of CNX Nifty Junior
February 1997 Regional clearing facility goes live
November 1997 Best IT Usage award by Computer Society of India
May 1998 Promotion of joint venture, India Index Services & Products Limited
(IISL)
May 1998 Launch of NSE's Web-site: www.nse.co.in
July 1998 Launch of NSE's Certification Programme in Financial Market
August 1998 CYBER CORPORATE OF THE YEAR 1998 award yes.
February 1999 Launch of Automated Lending and Borrowing Mechanism
April 1999 CHIP Web Award by CHIP magazine
October 1999 Setting up of NSE.IT
January 2000 Launch of NSE Research Initiative
February 2000 Commencement of Internet Trading
June 2000 Commencement of Derivatives Trading (Index Futures)
September 2000 Launch of 'Zero Coupon Yield Curve'
November 2000 Launch of Broker Plaza by Dotex International, a joint venture
between NSE.IT Ltd. and i-flex Solutions Ltd.
December 2000 Commencement of WAP trading
June 2001 Commencement of trading in Index Options
July 2001 Commencement of trading in Options on Individual Securities
November 2001 Commencement of trading in Futures on Individual Securities
December 2001 Launch of NSE VaR for Government Securities
January 2002 Launch of Exchange Traded Funds (ETFs)
May 2002 NSE wins the Wharton-Infosys Business Transformation Award in the
Organization-wide Transformation category
October 2002 Launch of NSE Government Securities Index
January 2003 Commencement of trading in Retail Debt Market
June 2003 Launch of Interest Rate Futures
August 2003 Launch of Futures & options in CNXIT Index
June 2004 Launch of STP Interoperability
August 2004 Launch of NSE‘s electronic interface for listed companies
March 2005 ‗India Innovation Award‘ by EMPI Business School, New Delhi
June 2005 Launch of Futures & options in BANK Nifty Index
December 2006 'Derivative Exchange of the Year', by Asia Risk magazine
January 2007 Launch of NSE – CNBC TV 18 media centre
March 2007 NSE, CRISIL announce launch of IndiaBondWatch.com
June 2007 NSE launches derivatives on Nifty Junior & CNX 100
October 2007 NSE launches derivatives on Nifty Midcap 50
January 2008 Introduction of Mini Nifty derivative contracts on 1 January 2008
March 2008 Introduction of long term option contracts on S&P CNX Nifty Index
April 2008 Launch of India VIX
April 2008 Launch of Securities Lending & Borrowing Scheme
August 2008 Launch of Currency Derivatives
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20. August 2009 Launch of Interest Rate Futures
November 2009 Launch of Mutual Fund Service System
December 2009 Commencement of settlement of corporate bonds
February 2010 Launch of Currency Futures on additional currency pairs
October 2010 Launch of 15-minute special pre-open trading session, a mechanism
under which investors can bid for stocks before the market opens.
October, 2010 Introduction of Currency Options on USD INR
October, 2010 Introduction of European Style Stock Options
November, 2010 Launch of mobile trading for all investors
December, 2010 NSCCL rated 'CCR AAA' for third consecutive year.
January, 2011 NSE receives "Financial Inclusion" Award.
July, 2011 Commencement of trading in 91 Day GOI Treasury Bill – Futures
August 2011 Launch of derivatives on Global Indices
September 2011 Launch of derivatives on CNX PSE and CNX Infrastructure Indices
December 2011 NSCCL Rated ―CCR AAA‖ for fourth consecutive year - 28th Dec
2011
March 14, 2012 NSE launches ―EMERGE‖ – SME Platform
March 22, 2012 NSE and India Post start Unique Financial Inclusion Initiative
"Jagruti"
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21. Indices
NSE also set up as index services firm known as India Index Services & Products Limited
(IISL) and has launched several stock indices, including:
S&P CNX Nifty(Standard & Poor's CRISIL NSE Index)
CNX Nifty Junior
CNX 100 (= S&P CNX Nifty + CNX Nifty Junior)
S&P CNX 500 (= CNX 100 + 400 major players across 72 industries)
CNX Midcap (introduced on 18 July 2005 replacing CNX Midcap 200)
Graph of S&P CNX Nifty from January 1997 to March 2011
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22. Exchange Traded Funds on NSE
NSE has a number of exchange traded funds. These are typically index funds and GOLD
ETFs. Some of the popular ETF's available for trading on NSE are:
Equity ETFs on NSE:
Nifty – Goldman Sachs Nifty Exchange Traded Scheme (NIFTYBEES)
Junior Nifty – Goldman Sachs Nifty Junior Exchange Traded Scheme
(JUNIORBEES)
Bank – Goldman Sachs Banking Index Exchange Traded Scheme (BANKBEES)
PSU Bank – Goldman Sachs PSU Bank Exchange Traded Scheme (PSUBNKBEES)
Shariah – Goldman Sachs S&P CNX Nifty Shariah Index Exchange Traded Scheme
(SHARIABEES)
Infrastructure – Goldman Sachs Infrastructure Exchange Traded Scheme
(INFRABEES)
S&P CNX Nifty UTI Notional Depository Receipts Scheme (UTISUNDER)
KOTAK PSU Bank ETF (KOTAKPSUBK)
Reliance Banking ETF (RELBANK)
Quantum Index ETF (QNIFTY)
KOTAK NIFTY (KOTAK NIFTY)
MOSt Shares M50 ETF (M50)
MOSt Shares M100 ETF (M100)
Gold ETFs:
AXIS MF – AXIS GOLD ETF (AXISGOLD)
GOLDMAN SACHS GOLD EXCHANGE TRADED SCHEME (GOLDBEES)
UTI GOLD ETF (GOLDSHARE)
HDFC GOLD ETF (HDFCMFGETF)
ICICI PRUDENTIAL GOLD ETF (IPGETF)
KOTAK GOLD ETF (KOTAKGOLD)
QUANTUM GOLD FUND (QGOLDHALF)
RELIANCE GOLD ETF (RELGOLD)
RELIGARE GOLD ETF (RELIGAREGO)
SBI MF-SBI GOLD ETS-GO (SBIGETS)
IDBI GOLD ETF (IDBIGOLD) (Newly added)
World Indices ETFs:
GS Hang Seng BeES (HNGSNGBEES)
MOSt Shares NASDAQ 100 (N100)
Debt ETFs:
GS Liquid BeES (LIQUIDBEES)
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23. Certifications
NSE also conducts online examination and awards certification, under its programmes of
NSE's Certification in Financial Markets (NCFM). Currently, certifications are available in
32 modules, covering different sectors of financial and capital markets, both at beginner and
advanced levels. the list of the various modules can be found at the following official site of
NSE India. Branches of the NSE are located throughout India. NSE, in collaboration with
reputed colleges and institutes in India, has been offering a short-term course called NSE
Certified Capital Market Professional (NCCMP) since August 2009, in the campuses of the
respective colleges/ institutes.
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24. INTRODUCTION
Investing, like marriage, isn't something that should be entered into lightly. Investing in
equities gives high returns but they correspondingly have higher risk also. Before we invest
in a company, there are more than a few things we need to know about it.
Securities Analysis
An analysis of securities and the organization and operation of their markets. The
determination of the risk reward structure of equity and debt securities and their valuation.
Special emphasis on common stocks. Other topics include options, mutual fluids and
technical analysis.
Technical analysis is a method of predicting price movements and future market trends by
studying charts of past market action which take into account price of instruments, volume of
trading and, where applicable, open interest in the instruments.
Fundamental analysis is a method of forecasting the future price movements of a financial
instrument based on economic, political, environmental and other relevant factors and
statistics that will affect the basic supply and demand of whatever underlies the financial
instrument.
Main differences between the two types of analysis:
Fundamental analysis Technical analysis
Focuses on what ought to Focuses on what actually
happen in a market happens in a market
Factors involved in price Charts are based on market
analysis: action involving:
1. Supply and demand 1.Price
2.Seasonal cycles 2.Volume
3.Weather 3. Open interest (futures
4. Government policy only)
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25. TECHNICAL ANALYSIS
Technical analysis can be conditionally divided into some main parts such as:
Types of charts
Graphical methods
Analytical methods
Technical analysis is concerned with predicting future price trends from historical price and
volume data. The underlying axiom of technical analysis is that all fundamentals (including
expectations) are factored into the market and are reflected in exchange rates.
A technical analysis is based on three axioms:
Movement of the market considers everything
Movement of prices is purposeful
History repeats itself
SUPPORT AND RESISTANCE
Support is a level at which bulls (i.e., buyers) take control over the prices and prevent them
from falling lower.
Resistance, on the other hand, is the point at which sellers (bears) take control of prices and
prevent them from rising higher. The price at which a trade takes place is the price at which a
bull and bear agree to do business. It represents the consensus of their expectations.
Support levels indicate the price where the most of investors believe that prices will move
higher. Resistance levels indicate the price at which the most of investors feel prices will
move lower.
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26. Role Reversal
When a resistance level is successfully broken through, that level becomes a support level.
Similarly, when a support level is successfully broken through, that level becomes a
resistance level.
DOW THEORY– TRENDS:
The ideas of Charles Dow, the first editor of the Wall Street Journal, form the basis of
technical analysis. The Dow theory is a method of interpreting and signaling changes in the
stock market direction based on the monitoring of the Dow Jones Industrial and
Transportation Averages. Dow created the Industrial Average, of top blue chip stocks, and a
second average of top railroad stocks (now the Transport Average). He believed that the
behavior of the averages reflected the hopes and fears of the entire market. The behavior
patterns that he observed apply to markets throughout the world.
Three Movements
Markets fluctuate in more than one time frame at the same time:
Nothing is more certain than that the market has three well defined movements which fit into
each other.
The first is the daily variation due to local causes and the balance of buying and
selling at that particular time.
The secondary movement covers a period ranging from ten days to sixty days,
averaging probably between thirty and forty days.
The third move is the great swing covering from four to six years.
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27. Bull markets are broad upward movements of the market that may last several years,
interrupted by secondary reactions. Bear markets are long declines interrupted by
secondary rallies. These movements are referred to as the primary trend.
Secondary movements normally retrace from one third to two thirds of the primary
trend since the previous secondary movement.
Daily fluctuations are important for short-term trading, but are unimportant in analysis
of broad market movements.
Various cycles have subsequently been identified within these broad categories.
Primary Movements have Three Phases
The general conditions in the market:
Bull markets
Bull markets commence with reviving confidence as business conditions improve.
Prices rise as the market responds to improved earnings
Rampant speculation dominates the market and price advances are based on hopes
and expectations rather than actual results.
Bear markets
Bear markets start with abandonment of the hopes and expectations that sustained
inflated prices.
Prices decline in response to disappointing earnings.
Distress selling follows as speculators attempt to close out their positions and
securities are sold without regard to their true value.
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28. Trends
Bull Trends
A bull trend is identified by a series of rallies where each rally exceeds the highest point of
the previous rally. The decline, between rallies, ends above the lowest point of the previous
decline.
Successive higher highs and higher lows.
The start of an up trend is signaled when price makes a higher low (trough), followed by a
rally above the previous high (peak):
Start = higher Low + break above previous High.
The end is signaled by a lower high (peak), followed by a decline below the previous low
(trough):
End = lower High + break below previous Low.
A bear trend starts at the end of a bull trend: when a rally ends with a lower peak and then
retreats below the previous low. The end of a bear trend is identical to the start of a bull trend.
28 | P a g e

29. FUNDAMENTAL ANALYSIS
Fundamental analysis refers to the study of the core underlying elements that influence the
economy of a particular entity. It is a method of study that attempts to predict price action and
market trends by analyzing economic indicators, government policy and societal factors (to
name just a few elements) within a business cycle framework.
I. ECONOMIC ANALYSIS:
POLITICO-ECONOMIC ANALYSIS:
No industry or company can exist in isolation. It may have splendid managers and a
tremendous product. However, its sales and its costs are affected by factors, some of which
are beyond its control - the world economy, price inflation, taxes and a host of others. It is
important, therefore, to have an appreciation of the politico-economic factors that affect an
industry and a company.
II. INDUSTRY ANALYSIS
The importance of industry analysis is now dawning on the Indian investor as never before.
1. BARRIER TO ENTRY
New entrants increase the capacity in an industry and the inflow of funds. The question that
arises is how easy is it to enter an industry ?
There are some barriers to entry:
a) Economies of scale
b) Product differentiation
c) Capital requirement
d) Government policy
2. THE THREAT OF SUBSTITUTION
New inventions are always taking place and new and better products replace existing ones.
An industry that can be replaced by substitutes or is threatened by substitutes is normally an
industry one must be careful of investing in. An industry where this occurs constantly is the
packaging industry -bottles replaced by cans, cans replaced by plastic bottles, and the like. To
ward off the threat of substitution, companies often have to spend large sums of money in
advertising and promotion.
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30. 3. BARGAINING POWER OF THE BUYERS
In an industry where buyers have control, i.e. in a buyer's market, buyers are constantly
forcing prices down, demanding better services or higher quality and this often erodes
profitability.
4. BARGAINING POWER FOR THE SUPPLIERS
An industry unduly controlled by its suppliers is also under threat.
5. RIVALRY AMONG COMPETITORS
Rivalry among competitors can cause an industry great harm. This occurs mainly by price
cuts, heavy advertising, additional high cost services or offers, and the like.
III. COMPANY ANALYSIS:
At the final stage of fundamental analysis, the investor analyzes the company. This analysis
has two thrusts:
How has the company performed vis-à-vis other similar companies and
How has the company performed in comparison to earlier years
It is imperative that one completes the politico economic analysis and the industry analysis
before a company is analyzed because the company's performance at a period of time is to an
extent a reflection of the economy, the political situation and the industry. What does one
look at when analyzing a company?
The different issues regarding a company that should be examined are:
The Management
The Company
The Annual Report
Ratios
THE MANAGEMENT:
The single most important factor one should consider when investing in a company and one
often never considered is its management.
In India management can be broadly
divided in two types:
Family Management
Professional Manageme
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31. RESEARCH METHODOLOGY & DESIGN
 TYPE OF STUDY
The research has been based on primary as well as secondary data analysis. The study has
been exploratory as it aims at examining the secondary data for analyzing the previous
researches that have been done in the area of technical and fundamental analysis of stocks.
The knowledge thus gained from this preliminary study forms the basis for the further
detailed Descriptive research. In the exploratory study, the various technical indicators that
are important for analyzing stock were actually identified and important ones short listed.
 SAMPLE DESIGN
The sample of the stocks for the purpose of collecting secondary data has been selected on
the basis of Random Sampling. The stocks are chosen in an unbiased manner and each stock
is chosen independent of the other stocks chosen. The stocks are chosen from the Different
Sector.
 SAMPLE SIZE
The sample size for the number of stocks is taken as 3 in each sector for technical analysis
and fundamental analysis of stocks as fundamental analysis is very exhaustive and requires
detailed study.
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32. Sector analysis
Banking sector
STATE BANK OF INDIA
State Bank of India (SBI) (NSE: SBIN, BSE: 500112, LSE: SBID) is the largest banking
and financial services company in India by revenue, assets and market capitalisation. It is a
state-owned corporation with its headquarters in Mumbai, Maharashtra. As of March 2012, it
had assets of US$360 billion with over 13,577 outlets including 157 overseas branches and
agents globally. The bank traces its ancestry to British India, through the Imperial Bank of
India, to the founding in 1806 of the Bank of Calcutta, making it the oldest commercial bank
in the Indian Subcontinent. Bank of Madras merged into the other two presidency banks—
Bank of Calcutta and Bank of Bombay—to form the Imperial Bank of India, which in turn
became the State Bank of India. The Government of India nationalised the Imperial Bank of
India in 1955, with the Reserve Bank of India taking a 60% stake, and renamed it the State
Bank of India. In 2008, the government took over the stake held by the Reserve Bank of
India. SBI has been ranked 285th in the Fortune Global 500 rankings of the world's biggest
corporations for the year 2012.
SBI provides a range of banking products through its vast network of branches in India and
overseas, including products aimed at non-resident Indians (NRIs). The State Bank Group,
with over 18,324 branches, has the largest banking branch network in India. SBI has 14 local
head offices situated at Chandigarh, Delhi, Lucknow, Patna, Kolkata, Guwahati (North East
Circle), Bhuwaneshwar, Hyderabad, Chennai, Trivandram, Banglore, Mumbai, Bhopal &
Ahmedabad and 57 Zonal Offices that are located at important cities throughout the country.
It also has 157 branches overseas.
SBI is a regional banking behemoth and is one of the largest financial institutions in the
world. It has a market share among Indian commercial banks of about 20% in deposits and
loans. The State Bank of India is the 29th most reputed company in the world according to
Forbes Also, SBI is the only bank featured in the coveted "top 10 brands of India" list in an
annual survey conducted by Brand Finance and The Economic Times in 2010
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33. State Bank of India
Type Public
Industry Banking, Financial services
Founded 1 July 1955
Headquarters Mumbai, Maharashtra, India
Key people Pratip Chaudhuri
Credit cards, Consumer banking, corporate banking, finance and insurance, investment
Products
banking, mortgage loans, private banking, wealth management
Revenue US$ 36.950 billion (2012)
Profit US$ 03.202 billion (2012)
Total assets US$ 359.237 billion (2012)
Total equity US$ 20.854 billion (2012)
Owner(s) Government of India
Employees 292,215 (2012)
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34. Share Holding Pattern in (%)
Sep' 11 Jun' 11 Mar' 11 Dec' 10
Promoter 59.40 59.40 59.40 59.40
FII 8.65 10.88 12.80 13.36
DII 18.54 17.45 16.57 15.59
Others 13.41 12.27 11.23 11.65
Total 100.00 100.00 100.00 100.00
Income Statement
(Mar '12) (Mar '12)
Quarterly Yearly
Net Sales 28695.50 106521.45
Other Income 5264.04 14351.45
PBDIT 23448.13 94803.91
Net Profit 4050.27 11707.29
Balance Sheet
(Mar '12)
(In Rs Cr)
Total Share Capital 671.04
Net Worth 83951.20
Total Debt 1170652.93
Net Block 5133.87
Investments 312197.61
Net Current Assets 805918.48
Total Assets 1335519.24
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35. SBI - 5 YEAR CHART
4000
3000
2000
1000
0
02/Apr/07 02/Apr/08 02/Apr/09 02/Apr/10 02/Apr/11 02/Apr/12
Close Price
52 Week High 2529.70 52 Week Low 1571.10
 Returns
BANKS 1 Month 3 6 Month 1 Year 3 Year 5 Year
Month
1) SBI -3.85 % -8.37 % 16.60 % -10.54 % 9.97 % 51.99 %
SBI Comprising The Nifty& Sensex
1 Month 3 Month 6 Month 1 Year 3 Year 5 Year
SBI -3.85 % -8.37 % 16.60 % -10.54 % 9.97 % 51.99 %
SENSEX -5.8125 % -8.1144 % 1.1702 % -11.841 % 11.5341 % 11.9513 %
NIFTY -5.6667 % -8.0674 % 2.4565 % -10.960 % 11.2790 % 16.022 %
INTERPRETATION
The table shows that the SBI stock have provided a better returns to the investors as it
has shown a growth of around 51.99% in 5 years. It shows a very volatile trend, in first
month SBI stock shown a negative trend and it continues to the same till 1 year and then
becomes positive in the 5 th year. This states that it is a long term investment call or long
term investment stock.
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36. ICICI BANK
ICICI Bank Limited (NSE: ICICIBANK, BSE: 532174, NYSE: IBN) is an Indian
diversified financial services company headquartered in Mumbai, Maharashtra. It is the
second largest bank in India by assets and third largest by market capitalization. It offers a
wide range of banking products and financial services to corporate and retail customers
through a variety of delivery channels and through its specialized subsidiaries in the areas of
investment banking, life and non-life insurance, venture capital and asset management. The
Bank has a network of 2,630 branches and 8,003 ATM's in India, and has a presence in 19
countries, including India
The bank has subsidiaries in the United Kingdom, Russia, and Canada; branches in United
States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance
Centre; and representative offices in United Arab Emirates, China, South Africa, Bangladesh,
Thailand, Malaysia and Indonesia. The company's UK subsidiary has established branches in
Belgium and Germany
ICICI Bank was established in 1996 by the Industrial Credit and Investment Corporation
of India, an Indian financial institution, as a wholly owned subsidiary. The parent company
was formed in 1955 as a joint-venture of the World Bank, India's public-sector banks and
public-sector insurance companies to provide project financing to Indian industry The bank
was initially known as the Industrial Credit and Investment Corporation of India Bank,
before it changed its name to the abbreviated ICICI Bank. The parent company was later
merged into ICICI Bank
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37. Type Public
BSE: 532174
Traded as
NSE: ICICIBANK
Industry Banking, Financial services
Founded 1955
Headquarters Mumbai, Maharashtra, India
K. V. Kamath
(Chairman)
Key people
Chanda Kochhar
(MD & CEO)
Credit cards, Consumer banking, corporate banking, finance and insurance, investment
Products
banking, mortgage loans, private banking, wealth management
Revenue US$ 13.812 billion (2011)
Profit US$ 01.366 billion (2011)
Total assets US$ 119.69 billion (2011)
Total equity US$ 12.401 billion (2011)
Employees 79,978 (2011)
Website www.icicibank.com
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38. Share Holding Pattern in (%)
Sep' 11 Jun' 11 Mar' 11 Dec' 10
Promoter 0.00 0.00 0.00 0.00
FII 38.17 38.61 38.62 39.23
DII 25.24 25.14 24.19 23.43
Others 36.59 36.25 37.19 37.34
Total 100.00 100.00 100.00 100.00
Income Statement
(Mar '12) (Mar '12)
Quarterly Yearly
Net Sales 9174.64 33542.65
Other Income 2228.46 7502.76
PBDIT 8712.16 31611.93
Net Profit 1901.76 6465.26
Balance Sheet
(Mar '12)
(In Rs Cr)
Total Share Capital 1152.77
Net Worth 60402.86
Total Debt 395664.87
Net Block 4614.69
Investments 159560.04
Net Current Assets 228680.85
Total Assets 473647.09
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39. ICICI BANK - 5 YEAR CHART
2000
1500
1000
Close Price
500
0
02/Apr/07 02/Apr/08 02/Apr/09 02/Apr/10 02/Apr/11 02/Apr/12
52 Week High 1111.80 52Week Low 641.00
 Returns
BANKS 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year
ICICI -11.02 % -13.48 % 9.82 % -27.78 % 5.88 % -14.64 %
BANK
ICICI BANK Comprising with Nifty & Sensex
1 Month 3 Month 6 Month 1 Year 3 Year 5 Year
ICICI -11.02 % -13.48 % 9.82 % -27.78 % 5.88 % -14.64 %
BANK
SENSEX -5.8125 % -8.1144 % 1.1702 % -11.841 % 11.5341 % 11.9513 %
NIFTY -5.6667 % -8.0674 % 2.4565 % -10.960 % 11.2790 % 16.022 %
INTERPRETATION
The indices have shown volatile trend in past as shown in the table. Sensex and Nifty
both were negative till the 3 month and then becomes positive in 6 month which again shows
am positive trend till the 5th year. This states that the stock currently is performing well and
will provide good returns to investors.
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40. HDFC BANK
HDFC Bank Limited (BSE: 500180, NSE: HDFCBANK, NYSE: HDB) is an Indian
financial services company that was incorporated in August 1994. HDFC Bank is the fifth or
sixth largest bank in India by assets and the second largest bank by market capitalization as of
February 24, 2012. The bank was promoted by the Housing Development Finance
Corporation, a premier housing finance company (set up in 1977) of India. HDFC Bank has
1,986 branches and over 5,471 ATMs, in 996 cities in India, and all branches of the bank are
linked on an online real-time basis. As of 30 September 2008 the bank had total assets of
Rs.1006.82 billion.[3] For the fiscal year 2010-11, the bank has reported net profit of
3,926.30 crore (US$710.66 million), up 33.1% from the previous fiscal. Total annual
earnings of the bank increased by 20.37% reaching at 24,263.4 crore (US$4.39 billion) in
2010-11.[4] HDFC Bank is one of the Big Four banks of India, along with: State Bank of
India, ICICI Bank and Punjab National Bank.
HDFC Bank was incorporated in 1994 by Housing Development Finance Corporation
Limited (HDFC), India's largest housing finance company. It was among the first companies
to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in
the private sector. The Bank started operations as a scheduled commercial bank in January
1995 under the RBI's liberalisation policies.
Times Bank Limited (owned by Bennett, Coleman & Co. / Times Group) was merged with
HDFC Bank Ltd., in 2000. This was the first merger of two private banks in India.
Shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times
Bank.
In 2008 HDFC Bank acquired Centurion Bank of Punjab taking its total branches to more
than 1,000. The amalgamated bank emerged with a base of about Rs. 1,22,000 crore and net
advances of about Rs.89,000 crore. The balance sheet size of the combined entity is more
than Rs. 1,63,000 crore
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41. Type Public
BSE: 500180
NSE: HDFCBANK
Traded as
NYSE: HDB
BSE SENSEX Constituent
Industry Banking, Financial services
Founded August 1994
Headquarters Mumbai, Maharashtra, India
Key people Aditya Puri (MD)
Credit cards, consumer banking, corporate banking, finance and insurance, investment
Products
banking, mortgage loans, private banking, private equity, wealth management
Revenue US$ 05.585 billion (2011)
Profit US$ 0923.8 million (2011)
Total assets US$ 65.483 billion (2011)
Total equity US$ 07.769 million (2011)
Employees 55,752 (2011)
Website HDFCBank.com
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42. Share Holding Pattern in (%)
Sep' 11 Jun' 11 Mar' 11 Dec' 10
Promoter 23.23 23.28 23.35 23.40
FII 29.30 29.23 28.53 29.37
DII 10.97 11.14 11.61 10.86
Others 36.50 36.35 36.51 36.37
Total 100.00 100.00 100.00 100.00
Income Statement
(Jun '12) (Mar '12)
Quarterly Yearly
Net Sales 8007.42 27286.35
Other Income 1529.49 5243.69
PBDIT 6617.00 22502.73
Net Profit 1417.39 5167.07
Balance Sheet
(Mar '12)
(In Rs Cr)
Total Share Capital 469.34
Net Worth 29924.38
Total Debt 270552.96
Net Block 2347.19
Investments 97482.91
Net Current Assets 162397.47
Total Assets 337909.49
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43. HDFC BANK - 5 Year Chart
600
500
400
300
200 Close
100
0
01/06/2007 01/06/2008 01/06/2009 01/06/2010 01/06/2011
52 Week High 558.00 52Week Low 400.25
 Returns
BANKS 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year
HDFC -2.81% 3.379% 2.018% -4.29% 17.33% 75.66%
BANK
HDFC BANK Comprising with Nifty & Sensex
1 Month 3 Month 6 Month 1 Year 3 Year 5 Year
HDFC -2.81% 3.379% 2.018% -4.29% 17.33% 75.66%
BANK
SENSEX -5.815 % -8.1144 % 1.1702 % -11.841 % 11.5341 % 11.9513 %
NIFTY -5.666 % -8.0674 % 2.4565 % -10.960 % 11.2790 % 16.022 %
INTERPRETATION
The above data shows the volatility in HDFC equity stock. In the year2008 - 2009 It
has fallen and shown negative trend but after that it shows a upward moving curve which
states that the stock is performing well and has provided satisfactory returns to the investors.
The growth up to 75.66008% have been recorded in the current year as compared to the year
2007
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44.  Comprising chart of returns of SBI , ICICI & HDFC Bank (%)
INTERPRETATION
According to graph, the ICICI bank equity has fallen more as compared to the SBI
and HDFC and continues to show a negative trend till the current year. The SBI equity stock
is highly volatile as compared to the other two. As compared to year 2007 the SBI stock
grown up to 137.84% in 2010 – 2011 but currently is fallen down to 67.71%. The HDFC
equity has shown a positive upward moving trend consistently after 2009 till the current year
which states that stock is less volatile.
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45. Banking Index
52 week High 11451.21 52 week Low 7766.67
Returns from Banking Sector
1 Month 3 Month 6 Month 1 Year 3 Year 5 Year
-8.1328 -9.35% 10.23% -14.33% 27.30% 47.40%
Returns from sensex
1 Month 3 Month 6 Month 1 Year 3 Year 5 Year
-5.81252 -8.11% 1.17% -11.84% 11.53% 11.95%
Returns from Nifty
1 Month 3 Month 6 Month 1 Year 3 Year 5 Year
-5.66676 -8.06% 2.45% -10.96% 11.24% 16.02%
INTERPRETATION
In the long the banking sector have provided the returns on investment was around 47.4050
which is nearer to 50%. This states that the fund invested in banking sector will grow up to ½
time i.e. 50% in the long run. Further Sensex and nifty both have provided better returns as
compared to the other sectors. As stock banking sector are volatile one must invest for longer
period of time. Investor must not get afraid with the volatile trend. As per records the
Banking Sector will provide a better returns in longer duration of investment
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46. IT SECTOR
INFOSYS
Infosys Limited formerly Infosys Technologies Limited (BSE: 500209, NSE: INFY,
NASDAQ: INFY) is an Indian provider of business consulting, technology, engineering and
outsourcing services. Its headquartered in Bangalore, India. It has offices in 30 countries and
development centers in India, US, China, Australia, UK, Canada, Japan and many other
countries
Infosys was co-founded in 1981 by N. R. Narayana Murthy, Nandan Nilekani, N. S.
Raghavan, S. Gopalakrishnan, S. D. Shibulal, K Dinesh and Ashok Arora after they resigned
from Patni Computer Systems. Today, Infosys is a global leader in the "next generation" of
IT and consulting with revenues of billion (FY12).Infosys ranked among the most innovative
companies in a Forbes survey, leading technology companies in a report by The Boston
Consulting Group and top ten green companies in Newsweek's Green Rankings
Infosys was voted India's most admired company in The Wall Street Journal Asia 200 every
year since 2000. The corporate governance practices were recognized by The Asset Platinum
award and the IR Global Rankings.
Infosys was also ranked as the 15th most trusted brand in India by The Brand Trust Report
In 1996, Infosys established the Infosys Foundation, operating in the areas of health care,
social rehabilitation and rural uplift, education, arts and culture. Since then, this foundation
has spread its activities from its headquarters in Karnataka to the Indian states of Tamil Nadu,
Andhra Pradesh, Maharashtra, Kerala, Orissa and Punjab in a phased manner.A dedicated
team at the Foundation identifies programs in the areas of Healthcare, Education, Culture,
Destitute Care and Rural Development
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47. Type Public
Industry IT services, IT consulting
N. R. Narayana Murthy
Nandan Nilekani
Founder(s) N. S. Raghavan
S. Gopalakrishnan
S. D. Shibulal
Services IT, business consulting and outsourcing services
Revenue US$ 6.99 billion (2012)
Operating
US$ 2.01 billion (2012)
income
Profit US$ 1.71 billion (2012)
Total assets US$ 7.53 billion (2012)
Total equity US$ 6.57 billion (2012)
Employees 151,151 (2012)
Divisions Infosys BPO, Infosys China
Website www.infosys.com
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48. Share Holding Pattern in (%)
Sep' 11 Jun' 11 Mar' 11 Dec' 10
Promoter 16.04 16.04 16.04 16.04
FII 36.66 36.88 36.12 36.60
DII 10.71 9.84 9.00 8.43
Others 36.59 37.24 38.84 38.93
Total 100.00 100.00 100.00 100.00
Income Statement
(In Rs Cr)
(Jun '12) (Mar '12)
Quarterly Yearly
Net Sales 8909.00 31254.00
Other Income 459.00 1829.00
PBDIT 3261.00 11890.00
Net Profit 2204.00 8470.00
Balance Sheet
(Mar '12)
(In Rs Cr)
Total Share Capital 287.00
Net Worth 29757.00
Total Debt 0.00
Net Block 4061.00
Investments 1409.00
Net Current Assets 23266.00
Total Assets
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49. INFOSYS - 5 YEAR CHART
4000
3500
3000
2500
2000
1500
1000
500
0
Close Price
52 Week High 2994.00 52Week Low 2150.00
 Returns
IT 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year
INFOSYS -0.932% -15.14% -6.43% -12.06% 52.30% 27.05%
INFOSYS Comprising with Nifty & Sensex
1 Month 3 Month 6 Month 1 Year 3 Year 5 Year
INFOSYS -O.932% -15.14% -6.43% -12.06% 52.30% 27.05%
SENSEX -5.815 % -8.1144 % 1.1702 % -11.841 % 11.5341 % 11.9513 %
NIFTY -5.666 % -8.0674 % 2.4565 % -10.960 % 11.2790 % 16.022 %
INTERPRETATION
The Infosys stock has not shown a consistent growth. In the 3rd year it moved up to
52.30% but has fallen down and remained on 27.05% of growth in the current year which
states that the it is not performing well currently as compared to the past years.
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50. Tata Consultancy Services Limited
Tata Consultancy Services Limited (TCS) (BSE: 532540, NSE: TCS) is an Indian provider of
information technology (IT) services, business solutions and outsourcing services. It is a subsidiary of
Tata Group conglomerate headquartered at Mumbai, Maharashtra, India. TCS is one of India's most
valuable companies
On August 9, 2004 TCS became a publicly listed company.
In 2005 TCS ventured into a new area for an Indian IT services company—Bioinformatics.[12]
In 2006 TCS designed the ERP for IRCTC.
In 2008 TCS went through an internal restructuring exercise that executives claim would
bring about agility to the organization.
TCS entered the Small and medium enterprises (SME) market for the first time in 2011, with
cloud-based offerings.
In the 2011 fiscal year TCS achieved U$10 billion in annual revenues for the first time.
Tata Consultancy Services signed a Rs 94-crore deal with the Karnataka government for six-
year period to automate its treasury and finance department operations. Deutsche Bank has
selected TCS as a strategic partner for their Production Management Transformation
Initiative, within their Capital Markets Business Unit. TCS has got contract from Credit
Union Australia. TCS has received a multi-year, multi-million dollar contract to provide
application support, maintenance and development services to the gases company Air
Liquide.[20] A book titled The TCS Story... and Beyond published by the Penguin
Group,was authored by S Ramadorai, now TCS‘s Vice-chairman and launched in September
2011.The book covers the 43 years journey of TCS. On the Last Trading Day of Year 2011,
TCS overtook RIL to be anointed as the country's most valued firm. On February 6, 2012,
TCS signed a multi-year, multi-million euro contract with European car rental company
Europcar for the deployment of IT services in France
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51. Type Public
Industry IT services, IT consulting
Founded 1968
Founder(s) JRD Tata
Headquarters Mumbai, Maharashtra, India
Ratan Tata
(Chairman)
Key people
N. Chandrasekaran
(CEO&MD)
Services IT, business consulting and outsourcing services
Revenue US$ 10.17 billion (2012)
Profit US$ 2.2 billion (2012)
Employees 243,545 (2012)
Parent Tata Group
Website www.tcs.com
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52. Share Holding Pattern in (%)
Dec' 11 Sep' 11 Jun' 11 Mar' 11
Promoter 74.08 74.08 74.08 74.05
FII 13.41 12.81 12.80 12.64
DII 7.67 8.10 8.10 8.11
Others 4.84 5.01 5.02 5.20
Total 100.00 100.00 100.00 100.00
Income Statement
(Jun '12) (Mar '12)
Quarterly Yearly
Net Sales 11410.65 38858.54
Other Income 169.26 2685.18
PBDIT 3621.11 14070.90
Net Profit 2797.59 10975.98
Balance Sheet
(Mar '12)
(In Rs Cr)
Total Share Capital 295.72
Net Worth 24856.63
Total Debt 96.23
Net Block 4063.62
Investments 5688.39
Net Current Assets 13473.97
Total Assets 24952.86
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53. TCS - 5 YEAR CHART
1400
1200
1000
800
600
400
200
0
Close Price
52 Week High 1295.25 52Week Low 902.00
 Returns
IT 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year
TCS
1.001 % 0.261% 11.63% 7.636% 58.37% 105.84%
TCS Comprising with Nifty & Sensex
1 Month 3 Month 6 Month 1 Year 3 Year 5 Year
TCS
1.001 % 0.261% 11.63% 7.636% 58.37% 105.84%
SENSEX -5.8125 -8.1144 % 1.1702 % -11.841 % 11.5341 % 11.9513 %
%
NIFTY -5.666 % -8.0674 % 2.4565 % -10.960 % 11.2790 % 16.022 %
INTERPRETATION
In the Long run the TCS equity stock has provided wonderful returns of 105.84 %.
But the graph shows the volatility with steep fall in the year 2009- 2010. Though it has
recovered after that moved up but currently it is not so consistent.
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54. WIPRO
Wipro Limited (formerly Western India Products Limited) (NASDAQ: WIT, NYSE:
WIT, BSE: 507685) is an Indian multinational provider of Information technology (IT)
services, consulting and outsourcing services. It is headquartered in Bangalore, India. As of
2012, the company has over 130,000 employees and a worldwide presence with global
centers across 54 countries
The company operates in four segments: IT products and services, Consumer care and
lighting, Healthcare and Infrastructure engineering
In February 2001, Wipro became the first software technology and services company in India
[16]
to be certified for ISO 14001 certification. Wipro also achieved ISO 9000 certification to
become the first software company to get SEI CMM Level 5 in 2002. Wipro Consumer Care
and Lighting Group entered the market of Compact Fluorescent Lamps, with the launch of a
range of CFL, under the brand name of Wipro Smartlite. As the company grew, a study
revealed that Wipro was the fastest wealth creator for 5 years (1997-2002). The same year
witnessed the launch of Wipro‘s own laptops with Intel's Centrino mobile processor. Wipro
also entered into an exclusive agreement with the owners of Chandrika for marketing of their
soap in select states in India. It set up a wholly owned subsidiary company viz. Wipro
[25]
Consumer Care Limited to manufacture consumer care and lighting products. In 2004,
Wipro joined the billion dollar club. It also partnered with Intel for i-shiksha. The year 2006
saw Wipro acquire cMango Inc., a US based Technology Infrastructure Consulting firm
Enabler, and a Europe based retail solutions provider.[31] In 2007, Wipro inked a large deal
with Lockheed Martin. It also entered into a definitive agreement to acquire Oki Techno
Centre Singapore Pte Ltd (OTCS) and signed an R&D partnership contract with Nokia
Siemens Networks in Germany. The year 2008 saw Wipro‘s foray into the clean energy
business with Wipro Eco Energy. In April 2011, Wipro signed an agreement with Science
Applications International Corporation (SAIC) for the acquisition of their global oil and gas
information technology practice of the commercial business services business unit. The year
2012 saw Wipro make its 17th acquisition in IT business when it acquired Australian
analytics product firm Promax Applications Group (PAG) for $35 million
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55. Type Public limited company
Industry IT services, IT consulting
Founder(s) M.H. Hasham Premji
Headquarters Bangalore, India
Services IT, business consulting and outsourcing services
Revenue US$ 7.30 billion (2012)[1]
Operating
US$ 1.25 billion (2012)
income
Total assets US$ 8.55 billion (2012)[1]
Total equity US$ 5.60 billion (2012)[1]
Employees 135,920 (2012)
Wipro Consumer Care & Lighting
Wipro Infrastructure Engineering
Divisions
Wipro GE Medical Systems Limited
Wipro Technology Services Limited
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56. Share Holding Pattern in (%)
Sep' 11 Jun' 11 Sep' 10
Promoter 79.17 79.23 79.36
FII 5.08 5.37 5.28
DII 4.15 3.74 3.52
Others 11.60 11.66 11.84
Total 100.00 100.00 100.00
Income Statement
(In Rs Cr)
(Jun '12) (Mar '12)
Quarterly Yearly
Net Sales 8932.60 32053.60
Other Income -5.10 856.70
PBDIT 1838.10 7270.40
Net Profit 1158.00 4685.10
Balance Sheet
(Mar '12)
(In Rs Cr)
Total Share Capital 491.70
Net Worth 24352.50
Total Debt 5243.20
Net Block 4649.80
Investments 10335.20
Net Current Assets 14120.60
Total Assets 29595.70
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57. WIPRO - 5 YEAR CHART
800
700
600
500
400
300
200
100
0
02/Apr/07 02/Apr/08 02/Apr/09 02/Apr/10 02/Apr/11 02/Apr/12
52 Week High 453.00 52Week Low 320.50
 Returns
IT 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year
WIPRO
3.395% 0.257% -3.63% 29.92% -8.06% -21.81%
WIPRO Comprising with Nifty & Sensex
1 Month 3 Month 6 Month 1 Year 3 Year 5 Year
WIPRO
3.395% 0.257% -3.63% 29.92% -8.06% -21.81%
SENSEX -5.8125 -8.1144 % 1.1702 % -11.841 % 11.5341 % 11.9513 %
%
NIFTY -5.666 % -8.0674 % 2.4565 % -10.960 % 11.2790 % 16.022 %
INTERPRETATION
As compared to the year 2007 the Wipro equity have fallen to negative side and has
not shown any satisfactory results in terms of growth. It has fallen down to -21.8166% which
provided the negative returns to the investors. In the year 2009-10 it has moved up to certain
extent on positive side. But again have shown a downward fall.
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58.  Comprising chart of returns of Infosys , Tcs & Wipro (%)
INTERPRETATION
In the year 2009-2010 the stocks of all three companies have fallen down to the extent
of -61.26% due to global recession and then recovered to the positive side as value of USD
appreciated. As compared to the other two TCS has outperformed and has touched the level
of 122.85 % of growth in the current year, as compared to year 2007.
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59. IT Index
52 week High 6362.41 52 week Low 4638.80
Returns of IT Sector
1 Month 3 Month 6 Month 1 Year 3 Year 5 Year
-8.30 % -6.3510% -9.80 % -13.3351% 37.30% 42.40%
Returns from sensex
1 Month 3 Month 6 Month 1 Year 3 Year 5 Year
-5.812% -8.114% 1.1702% -11.84% 11.53% 11.955%
Returns from Nifty
1 Month 3 Month 6 Month 1 Year 3 Year 5 Year
-5.66676% -8.06748% 2.4565% -10.96% 11.27% 16.02%
INTERPRETATION
The Indices shown that, in the Long run the IT sector provided a return of 42% on investment
in 5 years. Which is lesser than the banking sector? Further the stock are volatile but not
shown a higher growth rate than the Banking. Which means the sector provides a returns but
not as greater as the banking sector
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60. Questionnaire
Que.1. Do you investing in Equity Market?
[ ]Yes [ ] No
INTERPRETATION
As per the survey all 30 observations have invested in the equity market and banking
and IT sector.
Que.2. Whichfactors motivate you for investing in Equity Market?
[ ] Return [ ] Liquidity [ ] Safety
[ ] Capital Appreciation [ ] Other _____________
5%
10%
10%
RETURNS
LIQUIDITY
Capital Appreciation
75%
OTHERS
INTERPRETATION
From the total observation 75% do invest in the equity market because of Returns
factor. Which means the ―Return on Investment‖ factor motivates the maximum investors.
10% of the investors says that they invest for liquidity. 10% of the investors do invest in
equity for capital appreciation and 5% of the investors invest in the market because of the
factors other than listed above.
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61. Que.3. What is the rate of return expected by you from Equity Market in a year?
[ ] 5% – 10 % [ ] 10% – 15 % [ ] 15% – 20% [ ] 20% – 25%
[ ] 25% –30% [ ] 30% and above
0% 0%
10% 10%
20% 5%-10%
10%-15%
15%-20%
20%-25%
60% 25%-30%
30% & ABOVE
INTERPRETATION
60% of the investors expect 20% - 25% returns from the equity market on their investments.
20% of the investors as per the survey expects 25% - 30% returns on their investments. 10%
of the investors expects a ,lower return of 15-20% and 10% of the investors expect a higher
return of 30% and above on their invested fund.
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62. Que.4. Are you satisfied with the current performance of the Equity Market in terms of
expected return?
[ ] Fully Satisfied [ ] Satisfied [ ] Neutral
[ ] Unsatisfied[ ] Fully Unsatisfied
0%
20% 10%
FULLY SATISFIED
SATISFIED
20%
NEUTRAL
50%
UINSATISFIED
FULLY UNSATISFIED
INTERPRETATION
As per the survey 50% of the investors are satisfied with performance of the share
market. 10% of the investors from the total observation are very bullish about the market that
means they are fully satisfied with the performance of the market and the returns they got on
their investment. 20% of the investors are neutral about the market that means they are
neither bullish nor bearish about the market.20% of the total observations are unsatisfied with
performance of the market and no one from the observation is fully unsatisfied with market.
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63. Que.5. Which Sectors do you prefer the most?
(Here, I have decided to study only these TWO sectors.)
40%
BANKING SECTOR
60%
IT SECTOR
INTERPRETATION
As per the survey 60% of the investors prefer to invest in banking sector in the equity
market which states that banking sector attracts the investors to invest in the companies of
the sector as compare to the IT sector . Only 40% of the total observation prefer to invest in
IT sector.
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