5. SAPM
Pallavi Dawra
The need of this subject has evolved along with the financial markets. We all know
investment environment is highly dynamic these days but many basic principles remain
important which will be part of the course. Further study of this subject will inculcate the skills
in the students to conduct a sophisticated assessment of the current investment
environment and evaluation of investment options.
MId Sem Exam.15 Marks
First Hourly: 5 Marks
Second Hourly: 5 marks
Project : 10 Marks (Semester Project )
Presentation: 5 Marks
A)It is compulsory for the students to open a demat account and do a transaction
through that account. B) Portfolio Management Game in the lab will be played . The game
will be according to the current economic environment
Lecture Content
Introduction: Meaning Of Invesment, Avenues of Investment ( PPF, NSC, FD's, Bank
Deposits, Equity, Debentures, Insurance etc. )Comparison of various investment options
with respect to their risk & return characterstics.
Investment Environment: introduction to the investment environment will include the current
scenarion of possible available investment options and also Introduction to the stock market
will be given. Implications of the Direct Tax Code 2 on the investment env. will be
discussed
Capital Market Performance in recent months will be discussed in detail (Source will be NSE
Monthly performance book)
How securities are traded : How firms issue securities ( IPO, Pvt Placement).
SEBI guidelines on the new issue and Recent IPO's in the market their performance, pricing
strategies.
Where the securities are traded ( Secondary markets): Detail discussion on indian
secondary Markets: It will include discussion about BSE, NSE their trading procedures,
volumes, their main indexes etc.
6. Detail discussion on indian secondary Markets: It will include discussion about BSE, NSE
their trading procedures, volumes, their main indexes etc.
Detail insight into the trading: Types of Order( Limit order, Market order), Stop Loss. Trading
Costs, Buying On margin
How buying on margin works. Working will be explained with help of illusration.
Short sale, Circuit breaker (meaning, Timings), Freeze on the share prices during trading,
different catagories og freeze, Few examples of shares in different category of freeze,Insider
Trading
Case Study on Insider Trading: Live case Of HLL
Measuring Risk & Return: Total return, Real Return , Variance, What are the components of
return, Tax treatment, how it is calculated.
What is risk. How we can measure it with the help of variance and standarad deviation.risk
of a single security and risk of portfolio will be discussed.
Security Analysis: Fundamental Analysis Macroeconomic and Industry Analysis: Global
Economy: overall Global scenario and its impact on the indian stock market.Domestic Macro
Economy: GDP, Inflation , Government policies and their inluence on the stock market.
(Current Data will be of various economic factors will be incorporated in the lecture contents)
Demand & Supply Shocks, Business Cycles,( The best picks according to business cycles)
Economic Indicators
Industry Analysis: Defining an industry, Senstivity to business Cycle, Sector rotation
( Peak, Contraction, Trough, Expansion)
Industry life cycle, Industry Structure & Performance
Financial Statement Analysis: Profit & Loss Account, Balance Sheet, Statement Of Cash
Flows
Ratio Ananlysis: Decomposition Of ROE, Market Price ratio and other asset Utilization
ratios
7. Case Study of Financial Analysis Growth Industries) . Calculation of ratios and how
ratios are interpreted)
Equity Valuation: Intrinsic Value vs Market Price, Price Earning Ratio
Technical Analysis: Concept & Inroduction
Charting Techniques: Different types of Charts and their interpertation ( Head & Shoulder,
Candle stick etc.)
Various charting Examples
Technical Indicators: Market Breadth, Advances & Declines, Put call ratio, Open Interest,
their meaning and how to interpret behaviour of market.
Case study of Technical Ananlysis (Nifty Charting)
Case Study Of Stock Market Scam : Ketan Parekh Scam
Market Efficiency and Behavioural Finance: Random Walk and the efficient Market
Hypothesis, Implications Of EMH
Weak Form Of Efficiency & its Tests ( Run test, Serial Correlation test, Filter Rule)
Emprical evidences on Semistrong form of efficiency
Emprical evidences of Strong form of efficiency
Case study ( US-64 Scam)
Derivatives: Meaning & Introduction, Future & Forward Contract, Their working and margin
systems
Option Markets: Introduction, Option Trading, Option Types( Put , Call), Working of Option
contractc in the market.
Values Of options at the time of expiration
Option Strategies: Protective put , Covered Call, Straddle, spreads etc.
Equilibrum in Capital Markets: Basics & introduction, Portfolio Risk & Retirn
Efficient Portfolio and Optimal Portfolio
Secruity market line
Portfolio Revision Techniques
Presentation Topics:
8. Fundamental Analysis
Technical Analysis
Financial Instruments & Their markets
Derivatives Market In India
Current scenario of Indian Stock Market
Major Scams of Indian Stock Market
Terminology used for stock market
FII inflows : Is it good or bad
Badla & current settelement system.
An overview of major international stock exchanges
Commodity market in India
Perfomance of IPO’s for the last 3 years
Gold & Silver: Hedge against inflation
Carbon Trading
Efficient market Hypothesis
Capital Aset Pricing Model
