Comparative analysis of power and infrastructure sector

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This powerpoint presentation is conclusion of my 2 month summer internship at anandrathi shares and stock brokers ltd,pune

Project title:- COMPARATIVE ANALYSIS OF POWER AND INFRASTRUCTURE SECTOR COMPANIES STOCK PRICES FOR THE FY 2007-2008 VIZ A VIZ NIFTY.

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Comparative analysis of power and infrastructure sector

  1. 1. <ul><li>COMPARATIVE ANALYSIS OF POWER & INFRASTRUCTURE SECTOR COMPANIES STOCK PRICES FOR THE FY 2007-2008 VIZ A VIZ NIFTY. </li></ul><ul><li>APURV GOURAV </li></ul><ul><li>PGDM[BA] </li></ul><ul><li>2007-2009 </li></ul><ul><li>MITCON INSTITUTE OF MANAGEMENT ,PUNE </li></ul>
  2. 2. Company <ul><li>ANANDRATHI SHARES & STOCK BROKERS LTD, </li></ul><ul><li>DECCAN GYMKHANA BRANCH </li></ul><ul><li>PUNE </li></ul>
  3. 3. COMPANY PROFILE <ul><li>AnandRathi, founded in 1994 by Mr. Anand Rathi. </li></ul><ul><li>In year 2007 Citigroup Venture Capital International joined the group as a financial partner. </li></ul><ul><li>In India 450 location, Internationally Dubai & Bangkok. </li></ul><ul><li>Products :- Equity & Derivatives , Mutual Funds, Depository Services , Commodities , Insurance & IPO’s </li></ul>
  4. 4. INDUSTRY PROFILE <ul><li>Stock market occupies an important position in the national economy of a country. </li></ul><ul><li>The BSE and NSE have established themselves as the two leading exchanges and account for about 80% of the equity volume traded in India. </li></ul><ul><li>NSE registered as the market leader with 90.34 % of total turnover (2006-2007). </li></ul><ul><li>Top 2 stock exchange accounts for 99.98% turnover. </li></ul><ul><li>The turnover of global markets grown from US $ 39.61 trillion in 2004 to US $ 67.91 trillion in 2006. </li></ul>
  5. 5. OBJECTIVE <ul><li>Primary: </li></ul><ul><li>To analyze the return and return pattern of selected securities in the POWER and INFRASTRUCTURE sectors .  </li></ul><ul><li>To compare the performance of the stock with that of the Nifty index.  </li></ul><ul><li>To analyze the performance of the company securities before and after the announcement of the budget 2008. </li></ul><ul><li>  </li></ul><ul><li>Secondary:  </li></ul><ul><li>To assess the impact of the securities return on Nifty index performance. </li></ul>
  6. 6. RESEARCH METHEDOLOGY SAMPLE SIZE 2 Sectors Sector No of companies Power 6 Infrastructure 6 <ul><li>BIL Power </li></ul><ul><li>JP Hydro </li></ul><ul><li>NTPC </li></ul><ul><li>Reliance Energy ltd </li></ul><ul><li>Suzlon Energy </li></ul><ul><li>TATA Power </li></ul><ul><li>Ansal properties & infra </li></ul><ul><li>GMR Infra </li></ul><ul><li>GTL Infra </li></ul><ul><li>Lanco Infratech </li></ul><ul><li>Reliance Infra </li></ul><ul><li>Unitech </li></ul>
  7. 7. TOOLS USED FOR ANALYSIS: <ul><li>Beta </li></ul><ul><li>Correlation </li></ul><ul><li>Regression </li></ul><ul><li>Paired sample t test </li></ul><ul><li>Descriptive statistics </li></ul><ul><ul><li>Mean </li></ul></ul><ul><ul><li>standard deviation </li></ul></ul><ul><li>Return  </li></ul><ul><li>Return was calculated using the formulae : </li></ul><ul><li>Return = yesterday’s share price – Today’s share price </li></ul><ul><li>Yesterday’s share price </li></ul>
  8. 8. DATA PRESENTATION, ANALYSIS AND INTERPRETATION <ul><li>Power sector companies RETURN </li></ul>
  9. 9. INFRASTRUCTURE <ul><li>Infrastructure sector companies RETURN </li></ul>
  10. 10. Monthly Return of Power & Infra Viz a Viz NIFTY
  11. 11. BETA YEARLY
  12. 12. CORRELATION:
  13. 13. BEFORE AND AFTER BUDGET 2008
  14. 14. Finding & Conclusion <ul><li>The Power sector was found to be the most risky sector to invest in. </li></ul><ul><li>The announcement of Budget had no immediate effect on the company securities in all the two sectors. </li></ul><ul><li>The beta value is high for most of the companies in Power sector, month of January and it’s also happen in the Infrastructure sector. </li></ul><ul><li>The standard deviation of the returns to the company securities in the Power sector was high mostly in the month of January. Two companies had their highest standard deviation in the month of October. </li></ul>
  15. 15. <ul><li>In the Infrastructure sector the standard deviation was high for most of the companies in the month of January. </li></ul><ul><li>TATA Power was the company under study which had the highest beta of 1.197.And in Infrastructure sector LITL (Lanco Infratech) had the highest beta of 1.650. This makes both company the most risky company to invest in, among the companies which were taken for the study. </li></ul><ul><li>The Nifty index was dependent more on the Power sector compared to Infrastructure sectors . </li></ul>
  16. 16. RECOMONDATIONS <ul><li>Risk adverse investors must not invest in the Power sectors. These risk adverse investors can safely invest in the Infrastructure sector and also the Power sector is performing well in the market. </li></ul><ul><li>Risk willing investors can invest in the Infrastructure sector and as the risk involved is high the returns earned will also be high. </li></ul>
  17. 17. LIMITATION <ul><li>In each sector (Power and Infrastructure) only six good performing companies were selected for the study of which historical data available conveniently in NSE India website. </li></ul><ul><li>The performance of the company securities were studied only for a year from 1 st April 2007 to 31 st March 2008. </li></ul><ul><li>Conclusion is based on assuming that financial year 2007-2008 modal years for investment. </li></ul>
  18. 18. References <ul><li>www.nseindia.com </li></ul><ul><li>www.bseindia.com </li></ul><ul><li>www.investmentwatch.com </li></ul><ul><li>www.moneycontrol.com </li></ul><ul><li>www.investmentcommision.in </li></ul>

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