This document provides an overview of a project report submitted by Lucy Chatterjee to MAEER's MIT School of Business on a comparative analysis of the equity and derivatives markets. The report includes an introduction on the background and history of the Bombay Stock Exchange, Religare's company profile and competitive advantages, objectives and methodology of the study. It also outlines the contents which discuss data analysis of equity benefits, risks and types of margins. The report compares futures, forwards and options, and provides findings on practical situations and a comparative analysis of traded values in the F&O and cash segments.
This document is a project report submitted by T. Srinivas for a post graduate diploma in management. The project report studies derivatives (futures and options) at Sharekhan Stock Broking Co. Ltd. The report includes an introduction, company profile of Sharekhan, literature review on relevant topics like the derivatives industry and regulation, data analysis of specific stocks, findings and conclusions. The objective is to analyze investors' familiarity and awareness of derivatives and study profits/losses from trading various derivative instruments.
The document provides details about a project report submitted for a Master of Business Administration degree. It discusses a study conducted on consumer perception and behavior regarding Verka dairy products in Punjab, India. The report includes an introduction covering the dairy cooperative Milkfed and Verka Milk Plant in Mohali. It then discusses the research methodology, data analysis, conclusions, SWOT analysis, and recommendations from the study.
A study of consumer behaviour towards equities and derivatives market in udai...Projects Kart
The document provides details about a summer training project report submitted by a student at Indiabulls Securities Ltd. in Udaipur, India as part of an MBA program. The report includes sections on the background of Indiabulls, its subsidiaries, promoters, growth story, and services offered. Indiabulls is described as a leading financial services and real estate company in India with over 640 branches that offers services like securities trading, housing finance, consumer loans, and more.
This document is a report on factors affecting investment decisions and the competitive advantages of Indiabulls Securities. It begins with an introduction to Indiabulls and outlines the objectives, methodology, and scope of the project. It then provides an overview of the financial industry and brokerage sector in India. It analyzes Porter's 5 forces model, demand and supply drivers, domestic and global economic conditions, and the critical success factors of the industry. It also examines Indiabulls' business model, products, strategies, SWOT analysis, and competitive positioning. Finally, it identifies and interprets key factors influencing individual investment decisions and compares Indiabulls' services to competitors.
The document discusses a summer training project report completed by Sushant Tripathi for his Master's degree on comparing Religare and other stock trading services. It provides an executive summary, introduction, profile of Religare organization, research methodology, data analysis and interpretation, recommendations and conclusion. The report aims to understand customer expectations of Religare and analyze Religare's efforts to meet those expectations through its products and services.
1. The Indian stock broking industry has seen significant growth and consolidation over the past few decades. The top 10 brokerage firms now control over 66% of the market.
2. Revenues from equity broking have remained flat in recent years due to declining cash volumes and futures trading. However, the commodity and currency segments have seen higher growth rates.
3. While large brokerage firms have profit margins around 17%, mid-sized and small firms have lower margins of 9.5-10.5% respectively. Cost rationalization will be challenging due to competitive pressures.
This document provides details about an internship project report submitted by Chandra Kant Jaisansaria at Sharekhan Limited in Delhi from June 11, 2012 to August 10, 2012. The objective of the internship was to understand how trading is conducted in equities, currencies, commodities and mutual funds at a brokerage firm. The report includes an introduction to stock markets and commodity markets in India. It also provides an overview of the top 10 brokerage firms in India, with Sharekhan being ranked first. The report discusses the history, products and services of Sharekhan Limited and the various activities conducted by the intern during the internship.
This document provides an overview of a project report submitted by Lucy Chatterjee to MAEER's MIT School of Business on a comparative analysis of the equity and derivatives markets. The report includes an introduction on the background and history of the Bombay Stock Exchange, Religare's company profile and competitive advantages, objectives and methodology of the study. It also outlines the contents which discuss data analysis of equity benefits, risks and types of margins. The report compares futures, forwards and options, and provides findings on practical situations and a comparative analysis of traded values in the F&O and cash segments.
This document is a project report submitted by T. Srinivas for a post graduate diploma in management. The project report studies derivatives (futures and options) at Sharekhan Stock Broking Co. Ltd. The report includes an introduction, company profile of Sharekhan, literature review on relevant topics like the derivatives industry and regulation, data analysis of specific stocks, findings and conclusions. The objective is to analyze investors' familiarity and awareness of derivatives and study profits/losses from trading various derivative instruments.
The document provides details about a project report submitted for a Master of Business Administration degree. It discusses a study conducted on consumer perception and behavior regarding Verka dairy products in Punjab, India. The report includes an introduction covering the dairy cooperative Milkfed and Verka Milk Plant in Mohali. It then discusses the research methodology, data analysis, conclusions, SWOT analysis, and recommendations from the study.
A study of consumer behaviour towards equities and derivatives market in udai...Projects Kart
The document provides details about a summer training project report submitted by a student at Indiabulls Securities Ltd. in Udaipur, India as part of an MBA program. The report includes sections on the background of Indiabulls, its subsidiaries, promoters, growth story, and services offered. Indiabulls is described as a leading financial services and real estate company in India with over 640 branches that offers services like securities trading, housing finance, consumer loans, and more.
This document is a report on factors affecting investment decisions and the competitive advantages of Indiabulls Securities. It begins with an introduction to Indiabulls and outlines the objectives, methodology, and scope of the project. It then provides an overview of the financial industry and brokerage sector in India. It analyzes Porter's 5 forces model, demand and supply drivers, domestic and global economic conditions, and the critical success factors of the industry. It also examines Indiabulls' business model, products, strategies, SWOT analysis, and competitive positioning. Finally, it identifies and interprets key factors influencing individual investment decisions and compares Indiabulls' services to competitors.
The document discusses a summer training project report completed by Sushant Tripathi for his Master's degree on comparing Religare and other stock trading services. It provides an executive summary, introduction, profile of Religare organization, research methodology, data analysis and interpretation, recommendations and conclusion. The report aims to understand customer expectations of Religare and analyze Religare's efforts to meet those expectations through its products and services.
1. The Indian stock broking industry has seen significant growth and consolidation over the past few decades. The top 10 brokerage firms now control over 66% of the market.
2. Revenues from equity broking have remained flat in recent years due to declining cash volumes and futures trading. However, the commodity and currency segments have seen higher growth rates.
3. While large brokerage firms have profit margins around 17%, mid-sized and small firms have lower margins of 9.5-10.5% respectively. Cost rationalization will be challenging due to competitive pressures.
This document provides details about an internship project report submitted by Chandra Kant Jaisansaria at Sharekhan Limited in Delhi from June 11, 2012 to August 10, 2012. The objective of the internship was to understand how trading is conducted in equities, currencies, commodities and mutual funds at a brokerage firm. The report includes an introduction to stock markets and commodity markets in India. It also provides an overview of the top 10 brokerage firms in India, with Sharekhan being ranked first. The report discusses the history, products and services of Sharekhan Limited and the various activities conducted by the intern during the internship.
This document discusses a comparative study of the Indian stock market and its international counterparts. It analyzes trends, similarities, and patterns in activities and movements between the Indian stock exchanges (BSE and NSE) and exchanges in other countries from 1995 to 2006. The study finds that Indian stock markets have become more integrated with global markets and react in tandem with global cues. It concludes that Indian exchanges are ready to further integrate if regulations are relaxed and a variety of instruments are introduced.
This document is a project report submitted by Nikita J. Balai to Savitribai Phule Pune University for her Masters in Business Administration. The report studies the derivatives market in India, with a focus on NG Rathi Investrades Pvt. Ltd. It includes an introduction to derivatives, the history and development of stock markets and the financial services industry in India, and an overview of the capital markets. The report also covers a literature review, research methodology, data analysis, findings, conclusions and recommendations.
This document provides an overview of the Indian stock market and Indiabulls Securities, an Indian retail brokerage firm. It discusses the history of stock trading in India dating back to the 18th century. It also outlines the objectives and roles of brokerage firms in helping investors minimize risk and maximize returns. The document examines Indiabulls Securities and compares it to its competitors in the Indian retail brokerage market. It analyzes the financial performance and competitive strategies of Indiabulls Securities.
The document is a management thesis report submitted by Pritpal Singh analyzing consumer behavior towards share trading at Indiabulls Securities Ltd. It includes an acknowledgements section, preface, executive summary outlining the research objectives and methodology. It then provides an introduction to Indiabulls, discusses its history and corporate matters. The report also covers the functional areas of Indiabulls and introduces the concept of share trading. It outlines the findings and analysis section and bibliography.
Comaparative study of indian stock market with otherMisbah Choudhary
This document compares the Indian stock market to other Asian markets. It finds that the Indian market has the highest compound annual growth rate of returns over 5 years and 1 year compared to markets in Hong Kong, Indonesia, Malaysia, Japan and Korea. The Indian market also shows weak correlation to these other markets, indicating it provides diversification benefits for international investors. Overall, the study finds the Indian stock market delivers strong returns with low correlation to other Asian markets, making it an attractive investment option for the Asia Pacific region.
summer internship project at sharekhan ltd report on 'A study on investor pr...Mansi Bhimani
This document is a summer internship project report submitted by Mansi Bhimani to Sharekhan Ltd. as part of her MBA program. The report includes an introduction, research methodology, data collection and analysis on the topic of studying investor preference towards equity investments in Junagadh city. It also includes sections on the company profile, stock markets in India, major companies in the industry, Sharekhan's products and services, and conclusions from the study. The project was conducted over 6 weeks during Mansi's summer internship with Sharekhan.
Impact of WCM on Corporate PerformanceAshish Singh
This document provides an overview of a study analyzing the impact of working capital management on corporate performance at Indian Oil Corporation Limited (IOCL) from 2011-2015. The study uses ratio analysis, regression analysis, and comparisons to peers to examine IOCL's liquidity, working capital efficiency, relationship between liquidity and profitability, and how working capital management impacts return on capital employed. Key findings include a significant relationship between profitability and working capital management, inventory constituting the highest amount of working capital, and various liquidity ratios influencing profitability. Suggestions are made to reconsider working capital policy and increase current ratio and working capital turnover ratio.
A project report on overview of indian stock marketProjects Kart
The document provides an overview of the Indian stock market, including its history dating back nearly 200 years. It discusses the two major stock exchanges in India - the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). It provides details on the establishment of NSE in 1992 to modernize Indian stock trading, and its role in reforming practices and increasing trading volumes through electronic trading and settlement methods. Trading at NSE includes both wholesale debt and capital markets.
Mr. C. Jayaram
Directors: Mr. Dipak Gupta
Mr. Bina Chandarana
Mr. Prakash Apte
Mr. C. Jayaram
Mr. Uday Kotak
Mr. Jaideep Hansraj
Mr. KVS Manian
Mr. B. Ramakrishna
Mr. C. Jayaram
Mr. Uday Kotak
Mr. Jaideep Hansraj
Mr. KVS Manian
Mr. B. Ramakrishna
PRODUCTS AND SERVICES OF KOTAK SECURITIES LTD:
- Equity Broking
- Currency
A project report on strategic approach of karvy stock broking ltd and its com...Projects Kart
This document provides an overview of a project report submitted by a student to the K.R. Mangalam Institute of Management. The report examines the strategic approaches of Karvy Stock Broking Ltd. and its competitors regarding demat accounts and share trading. It includes sections on the objectives of the study, scope of the study, an introduction to the stock broking industry and Karvy company, SWOT analysis, Karvy's products and competitors, literature review, research methodology, data analysis, findings, and conclusions.
This document appears to be a summer training report submitted by a student named Vinita Chandravat to their faculty guide Prof. Nidhi Sharma. The report focuses on conducting a comparative analysis of the services provided by Ashika Stock Broking Ltd. and other broking houses in Indore, with a special focus on Ashika Stock Broking Ltd. The report includes an acknowledgements section, executive summary/preface, table of contents, and chapters on company study and project details. The company study chapter will cover the stock broking industry, Ashika Stock Broking's organization structure, financial profile, products/services, competitors, and other relevant information. The project details chapter will define the problem statement, objectives
Angel Broking is one of India's leading retail stock broking firms with over 250 offices across India. It was founded in 1987 and has grown to serve over 5.9 thousand retail clients through online and offline services. The document provides an overview of Angel Broking's history, services, and memberships in various stock and commodity exchanges.
This document contains a 15-page summer internship project report submitted by Yash Bhati to Jai Narayan Vyas University. The report details Yash Bhati's internship at Angel Broking Pvt. Ltd., a stock brokerage firm, under the guidance of Mr. Kailash Purohit. The report includes sections on stock exchanges, capital markets, Angel Broking's business, products/services, account opening, equity/derivatives trading, research methodology, findings and conclusions. It also acknowledges those who helped with the internship and research.
This document provides an introduction to a study comparing HDFC and ICICI mutual funds. It discusses the objectives of the study, which are to understand mutual funds and their workings, compare the performance of HDFC and ICICI funds in terms of risk and returns, and understand investor preferences toward mutual fund investments. A literature review is also provided covering past research on mutual fund performance evaluation. The methodology discusses data collection from primary and secondary sources and tools for analysis including tables, charts and graphs.
The document provides information about Angel Broking, including:
- It summarizes Angel Broking's profile, vision, services offered, and competitors.
- Angel Broking is one of India's largest stock broking and wealth management companies offering equity trading, commodities, portfolio management, mutual funds, life insurance, and other financial services.
- Key competitors include Kotak Securities, India Bulls, and ICICI Direct which also offer online trading accounts and services.
- A SWOT analysis of Angel Broking identifies strengths such as its large size and backing by major organizations, offering a wide range of insurance policies and benefits, while weaknesses, opportunities, and threats are not discussed.
Equity analysis of telecom sector for anand rathi securities by shilpa mandhanRavichandra Ks
The document outlines a project report submitted by Shilpa Mandhan to the University of Pune on conducting an equity analysis of the telecom sector for Anand Rathi Securities Ltd. under the guidance of Prof. Mahesh Halale. It provides details about Shilpa Mandhan, the project, Anand Rathi Securities Ltd., and the scope and objectives of the equity analysis project.
Performance Evaluation Of Indian Mutual Fundssagarbavishi
This document provides an analysis of the performance of Indian mutual funds. It begins with an acknowledgement and declaration section. It then provides an executive summary that analyzes the performance of 21 open-ended equity growth mutual funds against the BSE Sensex from 2004-2009. Various statistical tools are used to analyze average returns, absolute returns, standard deviation, betas, and relative performance indexes. A Mann-Whitney U-test finds that most funds performed similarly to the market except one fund. Cluster analysis also shows that most funds have similar properties and performance patterns. Overall, the study finds that most Indian mutual funds delivered returns in line with the stock market over the period examined.
This document provides an overview of Sharekhan Ltd., including:
- It describes Sharekhan as a leading retail brokerage firm in India with over 80 years of experience in stock broking.
- The company offers equity trading, investment advice, online trading platforms, and depository services to retail customers.
- It discusses Sharekhan's parent company, SSKI Group, and SSKI's experience in institutional broking and corporate finance.
- The document also provides brief descriptions of Sharekhan's areas of investment, use of technology, and business vision and mission.
Maps are used to represent the Earth's surface and show the relationship between locations. A map depicts features like distance, direction, and size on a flat surface that can be easily transported. Different types of maps serve various purposes. Topographic maps represent 3D terrain with contour lines and are used by hikers and engineers. Geologic maps show rock formations and are used by geologists. Biogeographic maps illustrate where animals and plants live and are used by scientists to understand species ranges. Environmental maps depict features like forests, climate, and oceans used by meteorologists and planners.
This document discusses a comparative study of the Indian stock market and its international counterparts. It analyzes trends, similarities, and patterns in activities and movements between the Indian stock exchanges (BSE and NSE) and exchanges in other countries from 1995 to 2006. The study finds that Indian stock markets have become more integrated with global markets and react in tandem with global cues. It concludes that Indian exchanges are ready to further integrate if regulations are relaxed and a variety of instruments are introduced.
This document is a project report submitted by Nikita J. Balai to Savitribai Phule Pune University for her Masters in Business Administration. The report studies the derivatives market in India, with a focus on NG Rathi Investrades Pvt. Ltd. It includes an introduction to derivatives, the history and development of stock markets and the financial services industry in India, and an overview of the capital markets. The report also covers a literature review, research methodology, data analysis, findings, conclusions and recommendations.
This document provides an overview of the Indian stock market and Indiabulls Securities, an Indian retail brokerage firm. It discusses the history of stock trading in India dating back to the 18th century. It also outlines the objectives and roles of brokerage firms in helping investors minimize risk and maximize returns. The document examines Indiabulls Securities and compares it to its competitors in the Indian retail brokerage market. It analyzes the financial performance and competitive strategies of Indiabulls Securities.
The document is a management thesis report submitted by Pritpal Singh analyzing consumer behavior towards share trading at Indiabulls Securities Ltd. It includes an acknowledgements section, preface, executive summary outlining the research objectives and methodology. It then provides an introduction to Indiabulls, discusses its history and corporate matters. The report also covers the functional areas of Indiabulls and introduces the concept of share trading. It outlines the findings and analysis section and bibliography.
Comaparative study of indian stock market with otherMisbah Choudhary
This document compares the Indian stock market to other Asian markets. It finds that the Indian market has the highest compound annual growth rate of returns over 5 years and 1 year compared to markets in Hong Kong, Indonesia, Malaysia, Japan and Korea. The Indian market also shows weak correlation to these other markets, indicating it provides diversification benefits for international investors. Overall, the study finds the Indian stock market delivers strong returns with low correlation to other Asian markets, making it an attractive investment option for the Asia Pacific region.
summer internship project at sharekhan ltd report on 'A study on investor pr...Mansi Bhimani
This document is a summer internship project report submitted by Mansi Bhimani to Sharekhan Ltd. as part of her MBA program. The report includes an introduction, research methodology, data collection and analysis on the topic of studying investor preference towards equity investments in Junagadh city. It also includes sections on the company profile, stock markets in India, major companies in the industry, Sharekhan's products and services, and conclusions from the study. The project was conducted over 6 weeks during Mansi's summer internship with Sharekhan.
Impact of WCM on Corporate PerformanceAshish Singh
This document provides an overview of a study analyzing the impact of working capital management on corporate performance at Indian Oil Corporation Limited (IOCL) from 2011-2015. The study uses ratio analysis, regression analysis, and comparisons to peers to examine IOCL's liquidity, working capital efficiency, relationship between liquidity and profitability, and how working capital management impacts return on capital employed. Key findings include a significant relationship between profitability and working capital management, inventory constituting the highest amount of working capital, and various liquidity ratios influencing profitability. Suggestions are made to reconsider working capital policy and increase current ratio and working capital turnover ratio.
A project report on overview of indian stock marketProjects Kart
The document provides an overview of the Indian stock market, including its history dating back nearly 200 years. It discusses the two major stock exchanges in India - the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). It provides details on the establishment of NSE in 1992 to modernize Indian stock trading, and its role in reforming practices and increasing trading volumes through electronic trading and settlement methods. Trading at NSE includes both wholesale debt and capital markets.
Mr. C. Jayaram
Directors: Mr. Dipak Gupta
Mr. Bina Chandarana
Mr. Prakash Apte
Mr. C. Jayaram
Mr. Uday Kotak
Mr. Jaideep Hansraj
Mr. KVS Manian
Mr. B. Ramakrishna
Mr. C. Jayaram
Mr. Uday Kotak
Mr. Jaideep Hansraj
Mr. KVS Manian
Mr. B. Ramakrishna
PRODUCTS AND SERVICES OF KOTAK SECURITIES LTD:
- Equity Broking
- Currency
A project report on strategic approach of karvy stock broking ltd and its com...Projects Kart
This document provides an overview of a project report submitted by a student to the K.R. Mangalam Institute of Management. The report examines the strategic approaches of Karvy Stock Broking Ltd. and its competitors regarding demat accounts and share trading. It includes sections on the objectives of the study, scope of the study, an introduction to the stock broking industry and Karvy company, SWOT analysis, Karvy's products and competitors, literature review, research methodology, data analysis, findings, and conclusions.
This document appears to be a summer training report submitted by a student named Vinita Chandravat to their faculty guide Prof. Nidhi Sharma. The report focuses on conducting a comparative analysis of the services provided by Ashika Stock Broking Ltd. and other broking houses in Indore, with a special focus on Ashika Stock Broking Ltd. The report includes an acknowledgements section, executive summary/preface, table of contents, and chapters on company study and project details. The company study chapter will cover the stock broking industry, Ashika Stock Broking's organization structure, financial profile, products/services, competitors, and other relevant information. The project details chapter will define the problem statement, objectives
Angel Broking is one of India's leading retail stock broking firms with over 250 offices across India. It was founded in 1987 and has grown to serve over 5.9 thousand retail clients through online and offline services. The document provides an overview of Angel Broking's history, services, and memberships in various stock and commodity exchanges.
This document contains a 15-page summer internship project report submitted by Yash Bhati to Jai Narayan Vyas University. The report details Yash Bhati's internship at Angel Broking Pvt. Ltd., a stock brokerage firm, under the guidance of Mr. Kailash Purohit. The report includes sections on stock exchanges, capital markets, Angel Broking's business, products/services, account opening, equity/derivatives trading, research methodology, findings and conclusions. It also acknowledges those who helped with the internship and research.
This document provides an introduction to a study comparing HDFC and ICICI mutual funds. It discusses the objectives of the study, which are to understand mutual funds and their workings, compare the performance of HDFC and ICICI funds in terms of risk and returns, and understand investor preferences toward mutual fund investments. A literature review is also provided covering past research on mutual fund performance evaluation. The methodology discusses data collection from primary and secondary sources and tools for analysis including tables, charts and graphs.
The document provides information about Angel Broking, including:
- It summarizes Angel Broking's profile, vision, services offered, and competitors.
- Angel Broking is one of India's largest stock broking and wealth management companies offering equity trading, commodities, portfolio management, mutual funds, life insurance, and other financial services.
- Key competitors include Kotak Securities, India Bulls, and ICICI Direct which also offer online trading accounts and services.
- A SWOT analysis of Angel Broking identifies strengths such as its large size and backing by major organizations, offering a wide range of insurance policies and benefits, while weaknesses, opportunities, and threats are not discussed.
Equity analysis of telecom sector for anand rathi securities by shilpa mandhanRavichandra Ks
The document outlines a project report submitted by Shilpa Mandhan to the University of Pune on conducting an equity analysis of the telecom sector for Anand Rathi Securities Ltd. under the guidance of Prof. Mahesh Halale. It provides details about Shilpa Mandhan, the project, Anand Rathi Securities Ltd., and the scope and objectives of the equity analysis project.
Performance Evaluation Of Indian Mutual Fundssagarbavishi
This document provides an analysis of the performance of Indian mutual funds. It begins with an acknowledgement and declaration section. It then provides an executive summary that analyzes the performance of 21 open-ended equity growth mutual funds against the BSE Sensex from 2004-2009. Various statistical tools are used to analyze average returns, absolute returns, standard deviation, betas, and relative performance indexes. A Mann-Whitney U-test finds that most funds performed similarly to the market except one fund. Cluster analysis also shows that most funds have similar properties and performance patterns. Overall, the study finds that most Indian mutual funds delivered returns in line with the stock market over the period examined.
This document provides an overview of Sharekhan Ltd., including:
- It describes Sharekhan as a leading retail brokerage firm in India with over 80 years of experience in stock broking.
- The company offers equity trading, investment advice, online trading platforms, and depository services to retail customers.
- It discusses Sharekhan's parent company, SSKI Group, and SSKI's experience in institutional broking and corporate finance.
- The document also provides brief descriptions of Sharekhan's areas of investment, use of technology, and business vision and mission.
Maps are used to represent the Earth's surface and show the relationship between locations. A map depicts features like distance, direction, and size on a flat surface that can be easily transported. Different types of maps serve various purposes. Topographic maps represent 3D terrain with contour lines and are used by hikers and engineers. Geologic maps show rock formations and are used by geologists. Biogeographic maps illustrate where animals and plants live and are used by scientists to understand species ranges. Environmental maps depict features like forests, climate, and oceans used by meteorologists and planners.
The document presents a project proposal for a comprehensive study on the application of technical indicators on the BSE index (SENSEX). The objectives are to measure market movements, benchmark fund performance, and provide guidelines to investors. The study will analyze SENSEX performance over the last five years using simple moving average, exponential moving average, and relative strength index indicators. The methodology will use secondary data and analytical research. Limitations include a limited time frame and the study considering only one variable. The expected contribution is providing knowledge on technical analysis to predict stock prices and investment decisions.
This document is a research study submitted by Kiran M K to the M.P. Birla Institute of Management in partial fulfillment of an MBA degree. The study analyzes the return and beta of stocks that are components of the BSE Sensex index over an eight year period from 2001 to 2008. The objectives are to study the behavior of index stocks over time, understand their performance, and determine if there are any relationships between stock returns. The study reviews literature on beta, the capital asset pricing model, and factors that influence stock returns. It aims to test if index stocks follow a particular trend or format.
This document is a project report submitted by Mr. Vinayak Kulkarni to Karnataka University, Dharwad in partial fulfillment of the requirements for a Master of Commerce degree. The project report examines loans and advances and was conducted from May to June 2015 under the guidance of Prof. Shivkumar. It was accepted by the coordinator Dr. S. S. Halageri and evaluated by two examiners. The project involved research and a study of loans and advances at Beereshwara Credit Co-operative Society Ltd in Haveri.
Valuation of sensex, a innovative new approachTanesh Gagnani
This document presents a plan to develop a method to evaluate whether stock markets are overvalued, undervalued, or fairly valued. The method calculates implied growth rates for a stock market index over time and establishes entry and exit points based on the mean and standard deviation of historical implied growth rates. The document outlines:
1. Calculating implied growth rates for individual stocks and the overall index using price, earnings per share, cost of equity, and a constant growth valuation model.
2. Using the mean and standard deviations of implied growth rates over past years to determine buy and sell points, such as the mean - 1 standard deviation as an entry point.
3. Testing whether this market timing model generates better returns than
Trend Analysis Of FII and Impact on SENSEX -2015 (Yearly Analysis) Piyush Patidar
⦁ To study the trends and patterns of foreign capital flow into India in the form of FIIs.
⦁ To find relation between FIIs & Sensex.
⦁ To examine whether FIIs have any influence on SENSEX
Project report on Relationship Of Inflation with Indian Stock MarketRohit Kumar
This document appears to be a cover page and certificate for a project report submitted by Rohit Kumar to fulfill the requirements of a Bachelor of Business Studies degree from Keshav Mahavidyalaya, University of Delhi. The project report is entitled "Relationship of Inflation with Indian Stock Market" and was carried out under the supervision of Kangan Jain. The certificate confirms that the report has not been submitted for any other degree or diploma.
Project on short term financial lanalysispnayak242
This document provides an overview and analysis of the cement industry in India. It begins with an introduction to the cement industry in India, outlining its history and growth. It then provides details on the current state of the industry, including regional segmentation, key players, production and capacity figures. The document also discusses factors important to the industry such as access to raw materials, capital intensity, economies of scale and capacity utilization.
A Fundamental Analysis On Three Indian FMCG CompaniesCourtney Esco
This document provides an overview of the FMCG industry in India. It discusses the stock market and major stock exchanges in India like BSE and NSE. It then discusses the FMCG industry in India, noting that it is the 4th largest sector worth $13 billion and expected to grow to $33.1 billion by 2015. The scope of the FMCG industry in India is analyzed, highlighting opportunities for growth in rural markets through increased penetration and awareness programs. Employment opportunities in marketing, retail, sales and other areas are also discussed.
This document is a project report submitted by Chandrasekhar Goud for his MBA in finance. The report studies online trading and stock broking at Sharekhan Pvt Ltd. The objectives are to analyze changes after moving from outcry to online trading, study Sharekhan's departments, understand their online trading system, and explore future developments in stock exchange trading. The methodology includes interviews with Sharekhan and collecting secondary data from lectures, brochures, magazines, and books.
This document is a project report submitted by Chandrasekhar Goud for his MBA in finance. The report studies online trading and stock broking at Sharekhan Pvt Ltd. The objectives are to analyze changes after moving from outcry to online trading, study Sharekhan's departments, understand their online trading system, and explore future developments. The methodology includes interviews with Sharekhan and collecting secondary data from materials, magazines, and books. Some limitations include brokers providing little market insight and potential queuing delays accessing markets through brokers.
This document is a project report submitted by Chandrasekhar Goud for his Master's in Business Administration. The report studies online trading and stock broking at Sharekhan Pvt Ltd. It includes objectives to analyze changes after moving from outcry to online trading, study Sharekhan's departments, and understand their online trading system. The methodology includes interviews with Sharekhan and collecting secondary data from materials, magazines, and books.
This document is a project report submitted to N.R. Vekaria Institute of Business Management Studies by two students, Chirag D. Rupareliya and Amit Parmar, as part of their MBA program. The report provides an analysis of various investment avenues with a special focus on mutual funds offered by State Bank of India. It includes an overview of the mutual fund industry globally and in India, descriptions of major companies and their product profiles, and analyses of industry growth, SBI mutual fund's financial ratios and returns. The conclusion recommends investing in high-performing mutual funds to benefit from tax savings.
This document provides an overview of key concepts related to the stock market and technical analysis. It defines corporations and why they issue stock. People invest in the stock market hoping the price will rise so they can sell for a profit. A stock market index provides a benchmark to compare market movement over time. Technical analysis is a method of evaluating securities by analyzing past price and volume statistics to identify patterns that can suggest future price behavior, rather than measuring intrinsic value.
The document provides an introduction and overview of mutual funds in India. It discusses that a mutual fund is an investment tool that allows investors to pool their money together under one scheme. The collected money is then invested in capital markets by professional fund managers. The document then provides details about the structure and contents of the summer training report, which focuses on analyzing mutual funds in India. It includes chapters on the introduction to mutual funds and the industry, literature review, research methodology, data analysis, findings and conclusion. The executive summary provides a brief overview of the key topics that will be discussed in the report such as the history of mutual funds in India, types of mutual funds, costs and fees, and trends in the industry.
Finance project on performance evaluation of indian mutual fundsProjects Kart
This document provides an executive summary of a report evaluating the performance of Indian mutual funds against the BSE Sensex stock market index over a 5-year period from 2004-2009. 21 open-ended equity growth mutual funds were selected for analysis. Statistical tools were used to calculate and compare the average returns, absolute returns, standard deviation, betas, and relative performance indexes of the funds versus the market. A Mann-Whitney U-test found that most funds' returns moved in sync with the market, except one fund that varied significantly. Cluster analysis grouped funds with similar performance metrics. The study concluded most funds provided returns similar to the market, with some variation during late 2005 to early 2006.
Performance evaluation of indian mutual fundsProjects Kart
This document is a report on the performance evaluation of Indian mutual funds submitted by students at SP Jain Center of Management in partial fulfillment of their GMBA program. It includes an introduction to the Indian mutual fund industry, an acknowledgement section, a declaration, and an index of the contents. The report will analyze data on 21 open-ended equity growth mutual funds over 5 years to evaluate their performance relative to the stock market and classify the funds based on statistical measures of returns, risk, and correlation with the market.
This document is a report on the performance evaluation of Indian mutual funds submitted by three students in partial fulfillment of a Global MBA program. It includes an acknowledgment, declaration, index, and executive summary. The executive summary provides a high-level overview of the study, which evaluated the performance of 21 Indian equity mutual funds against the Indian stock market over 5 years. Various statistical analyses were conducted, including returns, standard deviation, betas, and clustering. Most funds performed similarly to the market, with some variation at times, though one fund showed significantly different returns.
PerformanceevaluationofindianmutualfundsProjects Kart
This document is a report on the performance evaluation of Indian mutual funds submitted by three students in partial fulfillment of a Global MBA program. It includes an introduction to the Indian mutual fund industry, an acknowledgement section, a declaration, and an index of topics to be covered in the report such as the executive summary, literature review, research methodology, data analysis and findings. The report evaluates the performance of 21 open-ended equity growth mutual funds in India from 2004-2009 by analyzing their returns, risks, and performance relative to the stock market over this period using statistical tools.
1. This report analyzes and compares the financial statements of Kalyani Steels Ltd. over three years to understand the company's liquidity, turnover, solvency, and profitability using ratio analysis.
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This document provides an overview of the organizational structure and design of Sintex Industries Limited, an Indian company that operates in textiles and plastics. It describes the top management including the Chairman and Vice Chairman and discusses the hierarchy, organizational chart, and basis for departmentalization by product, customer, and geography given the company's large product range and multiple plant locations. The organizational design aims to effectively manage the diverse operations of Sintex Industries.
Working capital management project report mbaBabasab Patil
This document provides an index and executive summary of a study on the working capital management of Bahety Chemicals & Minerals Pvt Ltd, located in Dandeli, India. The study examines the company's working capital over a five year period from 2006-2010. Key findings include that the company's working capital and profits have increased each year, and it maintains current and quick ratios above standard requirements, indicating a satisfactory level of working capital management and liquidity. The document outlines the objectives, scope, limitations and methodology of the study.
This document is a report submitted by three students at SP Jain Center of Management in partial fulfillment of their Global MBA program. The report evaluates the performance of 21 Indian mutual funds over a 5 year period from 2004-2009. Statistical tools such as average returns, standard deviation, beta, and a Relative Performance Index are used to analyze the performance of the mutual funds compared to the benchmark BSE Sensex. A Mann-Whitney U-Test and hierarchical clustering are also used to classify the mutual funds based on their performance characteristics. The results show that most funds performed similarly to the market except for one fund that had significantly different returns. The clustering also showed that many funds had similar properties and performance patterns.
This document provides a project report on conducting a comparative analysis of the equity and derivatives markets. The report includes an introduction covering the background and history of relevant stock exchanges and indices. It discusses the company profile of Religare Securities Limited. The need, objectives, and methodology of the study are outlined. The report will analyze equity and derivatives performance based on metrics like NAV and EPS from May to June 2009. It will provide findings on the practical experience during the internship and compare traded values in cash and derivatives segments. The conclusions and recommendations will complete the report.
This document provides a project report on conducting a comparative analysis of the equity and derivatives markets. The report includes an introduction covering the background and history of relevant stock exchanges and indices. It discusses the company profile of Religare Securities Limited. The need, objectives, and methodology of the study are outlined. The report will analyze equity and derivatives performance based on metrics like NAV and EPS from May to June 2009. It will provide findings on the practical experience during the internship and compare traded values in cash and derivatives segments. The conclusions and recommendations will complete the report.
Temple of Asclepius in Thrace. Excavation resultsKrassimira Luka
The temple and the sanctuary around were dedicated to Asklepios Zmidrenus. This name has been known since 1875 when an inscription dedicated to him was discovered in Rome. The inscription is dated in 227 AD and was left by soldiers originating from the city of Philippopolis (modern Plovdiv).
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In Odoo, making a field required can be done through both Python code and XML views. When you set the required attribute to True in Python code, it makes the field required across all views where it's used. Conversely, when you set the required attribute in XML views, it makes the field required only in the context of that particular view.
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Denis is a dynamic and results-driven Chief Information Officer (CIO) with a distinguished career spanning information systems analysis and technical project management. With a proven track record of spearheading the design and delivery of cutting-edge Information Management solutions, he has consistently elevated business operations, streamlined reporting functions, and maximized process efficiency.
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This document provides an overview of wound healing, its functions, stages, mechanisms, factors affecting it, and complications.
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Healing can occur in two ways: Regeneration and Repair
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Complications of wound healing like infection, hyperpigmentation of scar, contractures, and keloid formation.
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UPRAHUL
This Dissertation explores the particular circumstances of Mirzapur, a region located in the
core of India. Mirzapur, with its varied terrains and abundant biodiversity, offers an optimal
environment for investigating the changes in vegetation cover dynamics. Our study utilizes
advanced technologies such as GIS (Geographic Information Systems) and Remote sensing to
analyze the transformations that have taken place over the course of a decade.
The complex relationship between human activities and the environment has been the focus
of extensive research and worry. As the global community grapples with swift urbanization,
population expansion, and economic progress, the effects on natural ecosystems are becoming
more evident. A crucial element of this impact is the alteration of vegetation cover, which plays a
significant role in maintaining the ecological equilibrium of our planet.Land serves as the foundation for all human activities and provides the necessary materials for
these activities. As the most crucial natural resource, its utilization by humans results in different
'Land uses,' which are determined by both human activities and the physical characteristics of the
land.
The utilization of land is impacted by human needs and environmental factors. In countries
like India, rapid population growth and the emphasis on extensive resource exploitation can lead
to significant land degradation, adversely affecting the region's land cover.
Therefore, human intervention has significantly influenced land use patterns over many
centuries, evolving its structure over time and space. In the present era, these changes have
accelerated due to factors such as agriculture and urbanization. Information regarding land use and
cover is essential for various planning and management tasks related to the Earth's surface,
providing crucial environmental data for scientific, resource management, policy purposes, and
diverse human activities.
Accurate understanding of land use and cover is imperative for the development planning
of any area. Consequently, a wide range of professionals, including earth system scientists, land
and water managers, and urban planners, are interested in obtaining data on land use and cover
changes, conversion trends, and other related patterns. The spatial dimensions of land use and
cover support policymakers and scientists in making well-informed decisions, as alterations in
these patterns indicate shifts in economic and social conditions. Monitoring such changes with the
help of Advanced technologies like Remote Sensing and Geographic Information Systems is
crucial for coordinated efforts across different administrative levels. Advanced technologies like
Remote Sensing and Geographic Information Systems
9
Changes in vegetation cover refer to variations in the distribution, composition, and overall
structure of plant communities across different temporal and spatial scales. These changes can
occur natural.
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UP
Stock Returns of Sensex 20
1. Stock Returns of Sensex 20
KARNATAK UNIVERSITY
DHARWAD
A PROJECT REPORT ON
“STOCK RETURNS OF SENSEX 20”
SUBMITTED TO KARNATAK UNIVERSITY IN PARTIAL
FULFILMENT FOR REQUIREMENT OF THE DEGREE OF
MASTER OF COMMERCE
Submitted by Under the Guidance of
Mahesh M. Agasimani DR. S. G. Hundekar
Reg No: 10c01171
Department of Commerce , Karnatak University Dharwad Page 1
2. Stock Returns of Sensex 20
KARNATAK UNIVERSITY
DHARWAD
Certificate
Reg.No: 10c01171 Date: 09-07-2012
This is to certify that this project entitled “Stock Returns of Sensex 20"
Submitted by Mr Mahesh M. Agasimani for the partial fulfillment of
the Degree of Master of Commerce is based on the result of experiment
carried out by him at P.G.Department of studies in Commerce,
Karnatak University, Dharwad, for the academic year 2011-2012.
GUIDE Chairman
Dr. S. G. Hundekar Dr. S. S. Hugar
Department of Commerce , Karnatak University Dharwad Page 2
3. Stock Returns of Sensex 20
CONTENTS
SL.No TITLES PAGE NO
Chapter-1
1) EXECUTIVE SUMMARY
2) OBJECTIVES OF THE STUDY
01 3) SCOPE OF THE STUDY 1-4
4) METHODOLOGY
5) LIMITATIONS OF THE STUDY
02 Chapter -2 5-26
SENSEX AND THE COMPANIES
Chapter-3
03 27-35
CONCEPTUAL FRAMEWORK OF STOCK
RETURNS
04 Chapter-4 36-61
ANALYSIS AND INTERPREATION
Chapter-5
05 62-64
FINDINGS, SUGGESTIONS AND CONCLUSION
06 BIBILOGRAPHY 65
Abbreviation
Department of Commerce , Karnatak University Dharwad Page 3
4. Stock Returns of Sensex 20
Particulars Abbreviation
Airtel AIR
Bajaj BJJ
Cipla CPL
DLF DLF
Housing Development Financial HDFC
Corp
HindalCo HIND
Hindustan Unilever Limited HUL
Industrial Development Bank of IDBI
India
Infosys INFY
Indian Tobacco Company ITC
Jaiprakash Associates JAP
Jindal Steel Works JSW
Larsen and Toubro L&T
Mahindra and Mahindra M&M
Maruti Suzuki MSZ
National Thermal Power Corp NTPC
Oil and Natural Gas Company ONGC
Reliance Industries RIL
State Bank of India SBI
Tata Motors TM
Sensex SX
Department of Commerce , Karnatak University Dharwad Page 4
5. Stock Returns of Sensex 20
Chapter 1
INTRODUCTION
Department of Commerce , Karnatak University Dharwad Page 5
6. Stock Returns of Sensex 20
1.1 Executive Summary
S tock Returns can provide insight into the structure of the financial market.
It is generally believed that the relationship between stock return and
Market return can provide an insight into the structure of capital market. The
main objectives of study to ascertain the Stock Return changes in the Bombay
Stock Exchange. Second the correlation between Stock Returns and Market
Returns. Pricing of stock is an issue heavily discussed in the areas of finance,
economics, and accounting. Generally it is known that pricing react to the arrival
of new information. Investors in the stock markets frequently revise their
expected prices of stocks depending on the flow of information relating to the
returns.
The current study is on Stock Returns of Sensex 20 Companies and Market
Returns, calculated for Weekly, Monthly, Quarterly, Half Yearly, and Annual
Period from closing prices of 20 companies in the Bombay Stock Exchange.
1.2 Objective of the Study
The objectives of the study is
To know the stock performance of Sensex 20 Companies.
To determine the Volatility of Sensex 20 Companies.
To know the market performance in the FY 2011-12.
To know the Excess Stock returns.
1.3. Need for Study
There exists a considerable amount of evidence both for and against various
level of efficiency for developed capital market. However, the capital market
of the developing world such as that of India has been less subjected to
efficiency Work. Therefore, further investigations on individual stock return
data would provide more conclusive evidence. The knowledge of stock return
in stock market can prove useful for investors.
Department of Commerce , Karnatak University Dharwad Page 6
7. Stock Returns of Sensex 20
By properly timing their buy and sell decisions, they can enhance their
adjusted profit, altering the time of routinely scheduled transaction in the
light of trading volume changes can enhancing one‘s return on investment.
The proposed study provides a useful insight into the behaviour of return
changes in the Indian capital market.
1.3 Scope of the study
The Scope of the study is exclusively conducted for Sensex 20 Companies. The
data sets include the opening and closing prices of the BSE Sensex 20
companies’ taken after adjusting to the dividends. The returns are calculated
for a period from April 2011 to March 2012 to maintain homogeneity in the
data.
1.4 Methodology
The project is an analytical work, where in the work, has to use the available
facts as information and analyze these to make a critical evaluation of
material. The Information furnished in this report has been calculated from
secondary Data only.
This study comprises a period of a year starting from April -1-2011 to March-
31-2011 i.e., for financial year 2011-2012. The units of analysis include 20
companies at the end of March 2012 that are listed on Bombay Stock
Exchange. The filtering process of companies includes 3 criteria.
First, the company must be listed on the Bombay Stock Exchange
before 1 April 2011.
Second, the stocks of companies must not be suspended for more than
12 months at any time Period.
Third, the stocks of companies must not be delisted during the period
of study.
Therefore, this study employs a data set of 20 Companies that are selected
based on five criteria and also BSE Sensex.
Department of Commerce , Karnatak University Dharwad Page 7
8. Stock Returns of Sensex 20
Secondary Data
The Secondary data is obtained from internet and respective companies’
website.
There are four approaches of calculating the stock returns viz:-
i. Open to Open method
ii. Open to Close Method
iii. Close to Close Method
iv. Close to Open Method
This work is based on Close to Close approach of calculating the stock
returns.
1.5 Limitations of the Study
The Good report interprets the result of the study. But every project has its
own limitations. The following are some of the limitations of the study.
1. The Study is done on basis of stock prices of the companies.
2. There is no hard and fast rule of calculating the stock returns.
3. The study is limited to only Sensex 20 companies out of all sensex listed
companies.
4. The Study is limited to only for the financial year 2011-12, i.e., April 2011 to
March 2012.
5. This study doesn’t consider the fundamental factors effecting the stock
returns.
Department of Commerce , Karnatak University Dharwad Page 8
9. Stock Returns of Sensex 20
Chapter 2
BSE SENSEX & COMPANIES
Department of Commerce , Karnatak University Dharwad Page 9
10. Stock Returns of Sensex 20
2.1 Introduction to BSE Sensex
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 (over 4900). It is the world's 5th most active in terms of number of
transactions 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
In the year of 1986, Bombay Stock Exchange Limited introduced the Stock Index that
eventually became the most important stock index of the country.
The SENSEX was based on the market-capitalization-weighted method and it
included the stocks of large and financially well established companies. From
Department of Commerce , Karnatak University Dharwad Page 10
11. Stock Returns of Sensex 20
September 2003, the SENSEX is measured on the method of free-float market
capitalization.
Apart from maintaining BSE SENSEX, the Bombay Stock Exchange also maintains
some other stock indices like:
SENSEX
MIDCAP
SMLCAP
BSE-100
BSE-200
BSE-500
Vision
"Emerge as the premier Indian stock exchange by establishing global
benchmarks"
Timing
Trading on the BOLT System is conducted from Monday to Friday between 9:15 a.m.
and 3:30 p.m. normally. Refer Notice No. 20101014-8 for call auction.
Heritage
The first ever stock exchange in Asia (established in 1875) and the first in the
country to be granted permanent recognition under the Securities Contract
Regulation Act, 1956, BSE Limited has had an interesting rise to prominence over
the past 133 years
While BSE Limited is now synonymous with Dalal Street, it was not always so. The
first venues of the earliest stock broker meetings in the 1850s were in rather natural
environs - under banyan trees - in front of the Town Hall, where Horniman Circle is
now situated.
Department of Commerce , Karnatak University Dharwad Page 11
12. Stock Returns of Sensex 20
A decade later, the brokers moved their venue to another set of foliage, this time
under banyan trees at the junction of Meadows Street and what is now called
Mahatma Gandhi Road. As the number of brokers increased, they had to shift from
place to place, but they always overflowed to the streets.
At last, in 1874, the brokers found a permanent place, and one that they could, quite
literally, call their own. The new place was, aptly, called Dalal Street (Brokers'
Street).
In 2002, the name "The Stock Exchange, Mumbai" was changed to Bombay Stock
Exchange. Subsequently on August 19, 2005, the exchange turned into a corporate
entity from an Association of Persons (AoP) and renamed as Bombay Stock
Exchange Limited.
Several Firsts
At par with the international standards, BSE Limited has in fact been a pioneer in
several areas. It has several firsts to its credit even in an intensely competitive
environment.
First in India to introduce Equity Derivatives.
First in India to launch a Free Float Index.
First in India to launch US$ version of BSE Limited.
First in India to launch Exchange Enabled Internet Trading Platform.
First in India to obtain ISO certification for a stock exchange.
'BSE On-Line Trading System' (BOLT) has been awarded the globally
recognised Information Security Management System standard Award.
First to have an exclusive facility for financial training.
First in India in the financial services sector to launch its website in Hindi and
Gujarati.
Shifted from Open Outcry to Electronic Trading within just 50 days.
First bell-ringing ceremony in the history of the Indian capital markets
(listing ceremony of Bharti Televentures Ltd. on February 18, 2002)
Department of Commerce , Karnatak University Dharwad Page 12
13. Stock Returns of Sensex 20
2.2 Functions of BSE
i. Ideal Meeting Place: It provides an ideal and convenient platform for
meeting of both the parties ready to invest and parties with profitable
projects.
ii. Mobilization of Savings: It provides an ample opportunities for the
investors, both individuals and institutions to invest their surplus
funds into various financial instruments and thus directs the flow of
savings towards the deficit units.
iii. Safety to investors: It provides adequate safety to the investors from
fraud and manipulation caused due to activities of speculators,
member, brokers etc, under the Securities Contract (Regulation) Act
1956.
iv. New Securities Market: It helps in the distribution of new securities
by providing a good platform for the companies to sell their securities.
v. Ready Market: It provides continuous, ready, open, broad market for
securities.
vi. Liquidity: It is possible for the investors to sell their securities at the
best quoted price and thus, convert their investment into cash almost
immediately and without much effort.
vii. Capital Formation: It provides an arrangement for the collection of
savings, in terms of investments in securities and channelizes such
savings to the industries as capital.
viii. Price Determination: It helps to determine the current market price
of the securities by the means of demand and supply, free cash flow
etc associated with the securities.
ix. Economic Barometer: The price movement of the securities in BSE,
determines the level of savings and investment activities in India, thus,
indicating the state of health of the economy of the nation.
x. Seasoning of Securities: The temporarily holding of stock by players
such as underwriters, dealers, brokers and speculators etc is called
seasoning of securities. This helps in better absorption of market for
new issues.
Department of Commerce , Karnatak University Dharwad Page 13
14. Stock Returns of Sensex 20
xi. Business Information: The business information supplied by the
corporate entities is allowed to be exchanged between the investors
and the issuers by the BSE.
xii. Investor Education: BSE provides the various information to the
investors about the principles and advantages of investing in
securities, which helps in designing their own portfolio.
xiii. Regulation: The requirement of listing on BSE, makes it possible for
the BSE to rein in on the corporate enterprises.
Settlement
Compulsory Rolling Settlement
All transactions in all groups of securities in the Equity segment and Fixed
Income securities listed on BSE are required to be settled on T+2 basis
(w.e.f. from April 1, 2003). The settlement calendar, which indicates the dates
of the various settlement related activities, is drawn by BSE in advance and is
circulated among the market participants.
Under rolling settlements, the trades done on a particular day are settled
after a given number of business days. A T+2 settlement cycle means that the
final settlement of transactions done on T, i.e., trade day by exchange of
monies and securities between the buyers and sellers respectively takes
place on second business day (excluding Saturdays, Sundays, bank and
Exchange trading holidays) after the trade day.
The transactions in securities of companies which have made arrangements
for dematerialization of their securities are settled only in demat mode on
T+2 on net basis, i.e., buy and sell positions of a member-broker in the same
scrip are netted and the net quantity and value is required to be settled.
However, transactions in securities of companies, which are in "Z" group or
have been placed under "trade-to-trade" by BSE as a surveillance measure
("T" group) , are settled only on a gross basis and the facility of netting of buy
and sell transactions in such scrips is not available.
Department of Commerce , Karnatak University Dharwad Page 14
15. Stock Returns of Sensex 20
The transactions in 'F' group securities representing "Fixed Income
Securities" and " G" group representing Government Securities for retail
investors are also settled at BSE on T+2 basis.
In case of Rolling Settlements, pay-in and pay-out of both funds and securities
is completed on the same day.
Members are required to make payment for securities sold and/ or deliver
securities purchased to their clients within one working day (excluding
Saturday, Sunday, bank & BSE trading holidays) after the pay-out of the funds
and securities for the concerned settlement is completed by BSE. This is the
timeframe permitted to the Members to settle their funds/ securities
obligations with their clients as per the Byelaws of BSE.
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.
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
Department of Commerce , Karnatak University Dharwad Page 15
16. Stock Returns of Sensex 20
2.3 Board Composition
Other
Sl No Name Designation
Designation Held
Vice chairman
1 Mr. S. RAMADORAI Chairman
TCS. Ltd
2 Mr. SUDHAKAR RAO Public Interest Director IAS
3 Dr. SANJIV MISRA Public Interest Director IAS
Deputy CEO
4 Mr. ANDREAS PREUSS Shareholder Director
Deutsche Borse AG
Vice-Chairman &
5 Mr. KEKI M. MISTRY Shareholder Director
CEO HDFC Ltd.
Designated Dir,
Trading Member
6 Mr. UTTAM BAGRI BCB Brokerage
Director Private Ltd.
Designated Dir,
Trading Member Asit C Mehta
7 Ms. DEENA A. MEHTA
Director Investment
Intermediates Ltd.
Designated Dir
Trading Member
8 Mr. ANIL M. SHAH Span Caplease
Director Private Ltd.
Management Team
(As of May 2012)
Sl. No. Name Designation
1 Mr. ASHISHKUMAR CHAUHAN Interim Chief Executive Officer
2 Mr. BALASUBRAMANIAM V Chief Business Officer
3 Mr. NEHAL VORA Chief Regulatory Officer
4 Mr. NAYAN MEHTA Chief Financial Officer
5 Mr. KERSI TAVADIA Chief Information Officer
6 Mr. VIJAY AGRAWAL Officer on Special Duty
7 Mr. LAKSHMAN GUGULOTHU CEO - SME Platform
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2.4 About Companies
1. Bharti Airtel Limited
Bharti Airtel Limited is a leading integrated telecommunications company
with operations in 20 countries across Asia and Africa.
Established on July 07, 1995, as a Public Limited Company
Headquartered in New Delhi, India, the company ranks amongst the top
5 mobile service providers globally in terms of subscribers. In India, the
company's product offerings include 2G, 3G and 4G services, fixed line,
high speed broadband through DSL, IPTV, DTH, enterprise services
including national & international long distance services to carriers. In the
rest of the geographies, it offers 2G, 3G mobile services. Bharti Airtel had
over 246 million customers across its operations at the end of February
2012.
The Market Capitalization of the company is Rs 113,223.36 Crores.
CEOs: Mr. Sanjay Kapoor (India & South Asia), Mr. Manoj Kohli
(International) Chairman: Mr. Sunil Bharti Mittal
2. BajaJ Autos Ltd
Bajaj Auto Limited is an Indian motorized vehicle-producing company.
Bajaj Auto is a part of Bajaj Group. Its founded by Jamnalal Bajaj at
Rajasthan in the 1930s. It is based in Pune, Maharashtra, with plants in
Chakan (Pune), Waluj (near Aurangabad) and Pantnagar in Uttaranchal.
The oldest plant at Akurdi (Pune) now houses the R&D centre Ahead.
Bajaj Auto makes and exports automobiles, scooters, motorcycles and the
auto rickshaw.
Bajaj Auto came into existence on 29 November 1945 as M/s Bachraj
Trading Corporation Private Limited. It started off by selling imported
two- and three-wheelers in India. In 1959, it obtained license from the
Government of India to manufacture two- and three-wheelers and it went
public in 1960.
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In 2010, Bajaj Auto announced the cooperation with Renault and Nissan
Motor to develop of a US$ 2,500 car, aiming at a fuel-efficiency of
30 kilometres per litre or twice an average small car, and carbon dioxide
emissions of 100 g/km. On 3 January 2012.
Bajaj auto unveiled the Bajaj RE60, a mini car for intra-city urban
transportation. The target customer group will be Bajaj's three-wheeler
customers.
The Market Capitalization of the company is Rs 46,776.18 Crores.
CEO: Mr. Rajiv Bajaj Chairman: Mr. Rahul Bajaj
3. CIPLA (Chemical Industrial & Pharmaceutical Labs) Ltd
Established 1935 by Khwaja Abdul Hamied, the Chemical, Industrial &
Pharmaceutical Laboratories, which came to be popularly known as Cipla.
He gave the company all his patent and proprietary formulas for several
drugs and medicines, without charging any royalty. On August 17, 1935,
Cipla was registered as a public limited company with an authorised
capital of Rs 6 lakhs.
Apart from its presence in the Indian market, Cipla also has an export
market and regularly exports to more than 185 countries in all corners of
the world.
Cipla cooperates with other enterprises in areas such as consulting,
commissioning, engineering, project appraisal, quality control, know-how
transfer, support, and plant supply.
Cipla is the world's largest manufacturer of Antiretroviral drugs (ARVs)
to fight HIV/AIDS, as measured by units produced and distributed
(multinational brand-name drugs are much more expensive, so in money
terms Cipla medicines are probably somewhere down the list). Roughly
40 percent of HIV/AIDS patients undergoing antiretroviral therapy
worldwide take Cipla drugs
The Market Capitalization of the company is Rs 25,858.08 Crores.
CEO: Mr. S. Radhakrishan Chairman: Dr Y. K . Hamied
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4. DLF Ltd
The DLF Group was founded in 1946. It developed some of the first
residential colonies in Delhi such as Krishna Nagar in East Delhi, which
was completed in 1949. Since then it has been responsible for the
development of many of Delhi’s other well known urban colonies,
including South Extension, Greater Kailash, Kailash Colony and Hauz
Khas.
DLF's primary business is development of residential, commercial and
retail properties. The company has a unique business model with
earnings arising from development and rentals. Its exposure across
businesses, segments and geographies, mitigates any down-cycles in the
market. From developing 22 major colonies in Delhi, DLF is now present
across 18 states-28 cities in India.
DLF is credited with introducing and pioneering the revolutionary
concept of developing commercial complexes in the vicinity of residential
areas and bringing about a paradigm shift in the industry by redefining
shopping, recreation and leisure experiences with the launch of City
Centre in Gurgaon in 2000.
The Market Capitalization of the Company is Rs 30,834.19 Crores.
CEO: Mr. T.C Goyal Chairman: Mr. Kushal Pal Singh
5. HDFC (Housing Development Finance Corporation) Ltd
HDFC Ltd was established in 1977 with the primary objective of meeting a
social need of encouraging home ownership by providing long-term
finance to households.
Pioneer and leader in housing finance in India, since inception, HDFC has
assisted more than 4.02 million customers to own a home of their own,
through cumulative housing loan approvals of over Rs. 4.63 trillion and
disbursements of over Rs. 3.74 trillion as at March 31, 2012.
HDFC has a wide network of 311 offices (which includes 74 offices of
HDFC's wholly owned distribution company HDFC Sales Private Limited)
catering to over 2,400 towns & cities spread across the country.
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HDFC also has offices in Dubai, London and Singapore and service
associates in the Middle East region, to provide housing loans and
property advisory services to Non-Resident Indians (NRIs) and Persons of
Indian Origin (PIOs).
The Market Capitalization of the company is Rs 91,734.84 Crores.
Founder: Mr. Hasmukh. T. Parekh CEO: Mr. Keki Mistry
Chairman: Mr. Deepak. S. Parekh
6. HindalCo Industries Ltd
Hindalco Industries Limited was established in 1968. The metals flagship
company of the Aditya Birla Group is the world's largest aluminium
rolling company and one of the biggest producers of primary aluminium
in Asia. Its copper smelter is the world’s largest custom smelter at a single
location.
The acquisition of Novelis Inc. in 2007 positioned it among the top five
aluminium majors worldwide and the largest vertically integrated
aluminium company in India.
Today Hindalco Industries are a metals powerhouse with high-end rolling
capabilities and a global footprint in 13 countries.
Hindalco is one of the leading producers of aluminium and copper. Our
aluminium units across the globe encompass the entire gamut of
operations, from bauxite mining, alumina refining and aluminium
smelting to downstream rolling, extrusions, foils, along with captive
power plants and coal mines.
Its copper unit, Birla Copper, produces copper cathodes, continuous cast
copper rods and other by-products, such as gold, silver and DAP
fertilisers.
The Market Capitalization of the company is Rs 21,151.48 Crores.
CEO: Mr. Debnarayan Bhattachary
Chairman: Mr. Kumar Mangalam Birla
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7. HUL Ltd
Hindustan Unilever Limited (HUL) is India's largest consumer goods
company based in Mumbai, Maharashtra. It is owned by the British-Dutch
company Unilever which controls 52% majority stake in HUL. Its products
include foods, beverages, cleaning agents and personal care products.
HUL was formed in 1933 as Lever Brothers India Limited and came into
being in 1956 as Hindustan Lever Limited through a merger of Lever
Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd.
The Company has an annual turnover of around Rs. 21,736 crores (FY
2011 - 2012). HUL is a subsidiary of Unilever, one of the world’s leading
suppliers of fast moving consumer goods with strong local roots in more
than 100 countries across the globe. Unilever has about 52%
shareholding in HUL.
The Market Capitalization of the company is Rs 92,534.35 Crores.
CEO: Mr. Nitin Paranjpe Chairman: Mr. Harish Manwani
8. IDBI Ltd
IDBI Bank Ltd. headquartered in Mumbai is today one of India's largest
commercial Banks. For over 40 years, IDBI Bank has essayed a key nation-
building role, first as the apex Development Financial Institution (DFI)
(July 1, 1964 to September 30, 2004) in the realm of industry and
thereafter as a full-service commercial Bank (October 1, 2004 onwards).
As a DFI, the erstwhile IDBI stretched its canvas beyond mere project
financing to cover an array of services that contributed towards balanced
geographical spread of industries, development of identified backward
areas, emergence of a new spirit of enterprise and evolution of a deep and
vibrant capital market. On October 1, 2004, the erstwhile IDBI converted
into a Banking company (as Industrial Development Bank of India
Limited) to undertake the entire gamut of Banking activities while
continuing to play its secular DFI role.
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As on March 31, 2012, IDBI Bank has a balance sheet of Rs.2.91 lakh crore
and business size (deposits plus advances) of Rs.3.92 lakh crore. As an
Universal Bank, IDBI Bank, besides its core banking and project finance
domain, has an established presence in associated financial sector
businesses like Capital Market.
The Market Capitalization of the bank is Rs 11,422.34 Crores.
CEO: Mr. G. V. Nageshwar Rao Chairman: Mr. R. M. Malla
9. Infosys Technologies Limited
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 with US$250. Today, Infosys is a global leader in the
"next generation" of IT, consulting. and outsourcing with revenues of US$
6.994 billion (FY12).
Infosys has a global footprint with 65 offices and 74 development centers
in US, India, China, Australia, Japan, Middle East, UK, Germany, France,
Switzerland, Netherlands, Poland, Canada and many other countries.
Infosys and its subsidiaries have 149,994 employees as on March 31,
2012.
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.
The Market Capitalization of the company is Rs 135,885.79 Crores.
CEO: Mr. S. D. Shibulal Chairman: Mr. V. K. Kamat
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10. ITC Ltd
ITC was incorporated on August 24, 1910 under the name Imperial
Tobacco Company of India Limited. As the Company's ownership
progressively Indianised, the name of the Company was changed from
Imperial Tobacco Company of India Limited to India Tobacco
Company Limited in 1970 and then to I.T.C. Limited in 1974.
In recognition of the Company's multi-business portfolio encompassing a
wide range of businesses - Cigarettes & Tobacco, Hotels, Information
Technology, Packaging, Paperboards & Specialty Papers, Agri-business,
Foods, Lifestyle Retailing, Education & Stationery and Personal Care - the
full stops in the Company's name were removed effective September 18,
2001. The Company now stands rechristened 'ITC Limited'.
ITC is one of India's foremost private sector companies with a turnover of
US $ 7 billion.
The Market Capitalisation of the company is Rs 178,299.17 Crore.
CEO and Chairman: Mr. Yogesh. C. Deveshwar
11. Jaiprakash Associates Ltd
Jaiprakash Associates Ltd. (JAL), the flagship company of the Jaypee Group, was
incorporated in 1996. In 2003 JAL was formed due to merger of Jaiprakash
Industries (JIL) and Jaiprakash Cement (JCL).
The company is currently executing various projects in hydropower /
irrigation / other infrastructure fields and has had the distinction of
executing simultaneously 13 hydropower projects spread over six states
and the neighbouring country Bhutan for generating 10,290 MW of
power. The Jaypee Group undertakes projects involving;
Large quantities of rock excavation (both surface and
underground) Controlled earth/rock fill
Concrete manufacture and placement (including chilling)
Hydro-mechanical equipment procurement and erection
Steel Structures Expressway Construction and Real Estate
Development
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The Market Capitalization of the Company is Rs 12,875.55 Crores.
Executive Chairman: Mr. Sunny Gaur
12. Jindal Steet Works ltd
JSW Steel Ltd. is an Indian steel company owned by the JSW Group based
in Mumbai, Maharashtra. JSW Steel is among India's largest steel
producers, with a capacity of 10 MT as of 2011.
As part of the US$10 billion O. P. Jindal Group, JSW Group has diversified
interests in Steel, Energy, Minerals and Mining, Aluminium, Infrastructure
and Logistics, Cement and Information Technology.
JSW Steel has also formed a many joint ventures in countries like Georgia,
Japan and acquired mining license in Chile, USA and Mozambique. JSW
Steel has recently acquired a majority stake in Ispat Industries Ltd.
making it India’s largest steel producer with a combined capacity of 14.3
MTPA by March 2011.
By 2020, the Company aims to produce 34 million tons of steel annually
with Greenfield integrated steel plants coming up in West Bengal near
Salboni about 35 km from Kharagpur and Barenda in Ranchi district of
Jharkhand.
The Market Capitalization of the company is Rs 13,820.99 Crores.
CEO: Dr. V. K. Nowal Chairman: Mr. Sajjan Jindal
13. Larsen and Toubro Ltd
L&T was founded in Bombay (Mumbai) in 1938 by two Danish engineers,
Henning Holck-Larsen and Soren Kristian Toubro. Both of them were
strongly committed to developing India's engineering capabilities to meet
the demands of industry.
L&T is India's largest engineering and construction company, with a
dominant presence in India's infrastructure, power, hydrocarbon,
machinery and railway related projects.
In recent years, L&T has expanded its global presence and international
projects contributed 9% of its overall order book for the 2010–11.
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L&T has diversified businesses designated as ‘Independent Companies’ or
‘ICs’ in the fields such as Hydrocarbon, heavy Engineering, Construction,
Power, Electrical and Automation, Machinery and Industrial Products,
Information Technology, Financial Services.
The Company has 119 subsidiaries and 23 associates.
The Market Capitalization of the Company is Rs 65,972.87 Crores.
CEO: Mr. A. M . Nayak Chairman: Mr. K. Venkatramanan
14. Mahindra and Mahindra Ltd
Founded in 1945 as a steel trading company, we entered automotive
manufacturing in 1947 to bring the iconic Willys Jeep onto Indian roads.
Over the years, it has diversified into many new businesses in order to
better meet the needs of customers. It follows a unique business model of
creating empowered companies by the principle of entrepreneurial
independence and Group-wide synergies which has led the company to
grow into a US $15.4 billion multinational group with more than 144,000
employees in over 100 countries across the globe.
Today, its operations span 18 key industries that form the foundation of
every modern economy: aerospace, aftermarket, agribusiness,
automotive, components, construction equipment, consulting services,
defense, energy, farm equipment, finance and insurance, industrial
equipment, information technology, leisure and hospitality, logistics, real
estate, retail, and two wheelers.
The Market Capitalization of the Company is Rs 40,316.66 Crores.
CEO: Mr. Anand Mahindra Chairman: Mr. Keshub Mahindra
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15. Maruti Suzuki Ltd
Maruti Suzuki India Limited (MSIL, formerly known as Maruti Udyog
Limited) is a subsidiary of Suzuki Motor Corporation, Japan. Maruti
Suzuki has been the leader of the Indian car market for over two and a
half decades.
The company has two manufacturing facilities located at Gurgaon and
Manesar, south of New Delhi, India. Both the facilities have a combined
capability to produce over a 1.5 million (1,500,000) vehicles annually. The
company plans to expand its manufacturing capacity to 1.75 million by
2013.
The Company offers 15 brands and over 150 variants ranging from
people's car Maruti 800 to the latest Life Utility Vehicle, Ertiga.
In terms of number of cars produced and sold, the Company is the largest
subsidiary of Suzuki Motor Corporation. Cumulatively, the Company has
produced over 10 million vehicles since the roll out of its first vehicle on
14th December, 1983.
Maruti Suzuki is the only Indian Company to have crossed the 10 million
sales mark since its inception. In 2011-12, the company sold over 1.13
million vehicles including 1,27,379 units of exports.
The Market Capitalization of the company is Rs 34,449.64 Crores.
CEO: Mr. Shinzo Nakanishi Chairman: Mr. R. C. Bhargava
16. NTPC Ltd
India’s largest power company, NTPC was set up in 1975 to accelerate
power development in India. NTPC is emerging as a diversified power
major with presence in the entire value chain of the power generation
business. Apart from power generation, which is the mainstay of the
company, NTPC has already ventured into consultancy, power trading,
ash utilisation and coal mining. NTPC ranked 341st in the ‘2010, Forbes
Global 2000’ ranking of the World’s biggest companies. NTPC became a
Maharatna company in May, 2010, one of the only four companies to be
awarded this status.
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The total installed capacity of the company is 39,174 MW (including JVs)
with 16 coal based and 7 gas based stations, located across the country. In
addition under JVs, 7 stations are coal based & another station uses
naptha/LNG as fuel.
The company has set a target to have an installed power generating
capacity of 1,28,000 MW by the year 2032. The capacity will have a
diversified fuel mix comprising 56% coal, 16% Gas, 11% Nuclear and 17%
Renewable Energy Sources(RES) including hydro. By 2032, non fossil fuel
based generation capacity shall make up nearly 28% of NTPC’s portfolio.
The Company has Market Capitalization of Rs 116,343.50 Crores.
Chairman cum CEO: Mr. Arup Roy Choudhury
17. ONGC Ltd
ONGC was founded on 14 August 1956 by the Indian state, which currently holds
a 74.14% equity stake. It is involved in exploring for and exploiting
hydrocarbons in 26 sedimentary basins of India, and owns and operates over
11,000 kilometers of pipelines in the country.
It is an Indian state-owned oil and gas company headquartered in Dehradun,
India. It is one of the largest Asia-based oil and gas exploration and production
companies, and produces around 77% of India's crude oil (equivalent to around
30% of the country's total demand) and around 81% of its natural gas. ONGC is
one of the largest publicly traded companies by market capitalization in India. It
is ranked 361st in the 2011 Fortune Global 500 list and is among the Top 250
Global Energy Company by Platts.
ONGC Videsh Limited (OVL) is the international arm of ONGC. It was
rechristened on 15 June 1989. It currently has 14 oil and projects across 15
countries. Its oil and gas production reached 8.87 MMT of O+OEG in 2010,
In 2011, ONGC applied to purchase of 2000 acres of land at Dahanu to process
offshore gas. ONGC Videsh, along with Statoil ASA (Norway) and Repsol SA
(Spain), has been engaged in deepwater drilling off the northern coast of Cuba in
2012.
The Market Capitalization of the Company is Rs 212,090.60 Crores.
CMD: Mr. R. S. Sharma
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18. State Bank of India (SBI)
The origin of the State Bank of India goes back to the first decade of the
nineteenth century with the establishment of the Bank of Calcutta in
Calcutta on 2 June 1806. A unique institution, it was the first joint-stock
bank of British India sponsored by the Government of Bengal.
The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July
1843) followed the Bank of Bengal. These three banks remained at the
apex of modern banking in India till their amalgamation as the Imperial
Bank of India on 27 January 1921.
State Bank of India (SBI) is the largest banking and financial services
company in India by revenue, assets and market capitalization. It is a
state-owned corporation with its headquarters in Mumbai, Maharashtra.
It has 14097 branches and 27286 ATMs across country (as on May 2012).
The bank has made its international presence with 174 office in 34
countries.
For the FY2011-12 the bank has reported Net Profit of Rs 11707 Crores
and has market capitalization of Rs 122,747.52 Crores.
Chairman: Mr. Pratip Choudhari
19. Reliance Industries Ltd
The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is
India's largest private sector enterprise, with businesses in the energy
and materials value chain. Group's annual revenues are in excess of US$
66 billion. The flagship company, Reliance Industries Limited, is a
Fortune Global 500 company and is the largest private sector company in
India.
Backward vertical integration has been the cornerstone of the evolution
and growth of Reliance. Starting with textiles in the late seventies,
Reliance pursued a strategy of backward vertical integration - in
polyester, fibre intermediates, plastics, petrochemicals, petroleum
refining and oil and gas exploration and production - to be fully integrated
along the materials and energy value chain.
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The Group's activities span exploration and production of oil and gas,
petroleum refining and marketing, petrochemicals (polyester, fibre
intermediates, plastics and chemicals), textiles, retail, infotel and special
economic zones.
RIL continues to be featured, for the sixth consecutive year, in the Fortune
Global 500 list of the World's Largest Corporations, ranking for 2010 is as
follows:
Ranked 175 based on Revenues
Ranked 100 based on Profits
RIL is ranked 68th in 2010, in the Financial Times' FT Global 500 list of
the world's largest companies (up from previous year's 75th rank).
The RIL consists of 130 subsidiaries and 1 associate.
The Market Capitalization of the Company is Rs 257,733.75 Crores.
CEO cum Chairman: Mr. Mukesh. D. Ambani
20. TATA Motors Ltd
Tata Motors Limited is India's largest automobile company, with
consolidated revenues of INR 1,65,654 crores (USD 32.5 billion) in
2011-12.
Tata Motors is the leader in commercial vehicles in each segment, and
among the top three in passenger vehicles with winning products in the
compact, midsize car and utility vehicle segments. It is the world's fourth
largest truck and bus manufacturer.
Established in 1945, Tata Motors' presence indeed cuts across the length
and breadth of India. Over 6.5 million Tata vehicles ply on Indian roads,
since the first rolled out in 1954. The company's manufacturing base in
India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra),
Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand), Sanand (Gujarat) and
Dharwad (Karnataka).
Following a strategic alliance with Fiat in 2005, it has set up an industrial
joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra)
to produce both Fiat and Tata cars and Fiat powertrains.
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The company's dealership, sales, services and spare parts network
comprises over 3,500 touch points.
Tata Motors is also expanding its international footprint, established
through exports since 1961. The company's commercial and passenger
vehicles are already being marketed in several countries in Europe, Africa,
the Middle East, South East Asia, South Asia, CIS, Russia and South
America. It has franchisee/joint venture assembly operations in
Bangladesh, Ukraine, and Senegal.
Tata Motors, the first company from India's engineering sector to be listed
in the New York Stock Exchange (September 2004), has also emerged as
an international automobile company. Through subsidiaries and associate
companies, Tata Motors has operations in the UK, South Korea, Thailand,
Spain and South Africa. Among them is Jaguar Land Rover, a business
comprising the two iconic British brands that was acquired in 2008.
Tata Motors with TATA NANO was able to produce world’s cheapest Car
The Market Capitalization of the Company is Rs 85,802.67 Crores.
CEO: Mr. Harish Batt Chairman: Dr. Ratan Tata
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Chapter 3
CONCEPTUAL BACKGROUND OF
STOCK RETURNS
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3.1 Introduction
The market often takes long time to reward stockholder with Stock Return
that corresponds to company’s Return on Capital. To better understand these
concepts it is crucial to differentiate Stock Returns from Return on capital.
The return on capital is the measure of company’s profitability where as
Stock Returns represents the combination of Dividends and Changes in
Stock Price (better known as capital gains).
The market often forgets the important relationship between Stock Returns
and Return of capital. The company can earn high Return of capital but still
the stockholder may suffer if the market price of the stock decreases over the
same period. On the contrary the company with low Return on capital may
experience its stock price increase if the firm performed less terribly than the
market had expected. Or maybe the company currently losing lots of money,
or investors had bid up its stock in anticipation of future profits.
3.2 Meaning of Stock Returns
To understand the meaning of stock returns, first, it is essential to know the
meaning of Investment, Stock and Return.
Investment
Investment refers to purchase of an asset or item with the hope that it
will generate income or appreciate in the future. In an economic sense, an
investment is the purchase of goods that are not consumed today but are
used in the future to create wealth.
Investment is a process of deferring current consumption for the sake of
future consumption.
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What is Stock?
Stock is An instrument that signifies an ownership position (called equity) in
a corporation, and represents a claim on its proportional share in
the corporation's assets and profits.
Ownership in the company is determined by number of share the person
owns divided by the total number of shares outstanding. For example, if a
company has 1000 shares of stock outstanding and a person owns 50 of
them, then he/she owns 5% of the company.
Most stock also provides voting rights, which give shareholders a
proportional vote in certain corporate decisions. Only a certain type of
company called a corporation has stock; other type of companies such as sole
proprietorships and limited partnerships do not issue stock also called equity
or securities or corporate stocks.
What is Return?
Return is a primary motivating force that drives investment. It represents the
reward for the undertaking investment. The returns of an investment
consists of two components namely
i) Current returns
ii) Capital returns
Current Returns: The current returns is related to periodic cash inflows
such as dividends or interests generated by the investment. Current return is
measured as with periodic income in relation to the beginning price of the
investment.
Capital Returns: The capital returns is reflected in the price change. It is
simply the price appreciation or depreciation divided by the beginning price
of the asset.
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Stock Returns
So Stock Returns refers the reward for investing in the stocks. This reward
includes the current returns and capital returns.
In another, sense stock returns is the measure of performance of a stock.
Total Stock Returns = Current Returns on stock + Capital Returns on stock
3.3 Types of Stock Returns
The Stock Returns are of two types
i. Historical Stock Returns
ii. Expected (Ex Ante) Stock Returns
Historical Stock Returns is the measure of past performance of a security or
index. Historical returns are a reflection of the performance of a particular
security or index in the past. They are used in the development of informed
investing decisions where risks and potential returns are balanced to create a
portfolio with a probability of strong returns.
Expected Stock Returns are the anticipated future returns on the stock. It is
the weighted average of all the possible returns adjusted to their respective
probabilities.
3.4 Measuring Stock Returns
Historical Stock Returns
The total stock returns, for given period of time, is determined by the
following formula:
Dividends received Price change
during the period + during the period
Total Stock Return =
Price at the beginning of the Period
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That is in formula terms
D + (P1 – P0) D = Divided for the period
R = P1 = Price at end of the period
P0 P0 = Price at beginning of period
Expected Stock Returns
The expected stock returns is calculated on basis of the possible returns and
probability of getting such returns.
The expected Stock returns is calculated using the formula
Where
E(R) = Expected Stock Return
Ri = Possible Returns
Pi = Probability
This project is based on the historical stock returns calculated for the Financial
Year 2011-2012.
Excess Returns
The returns from a Stock that exceeds a benchmark or index with a similar
level of risk is called as excess returns. It is widely used as a measure of the
value added by the portfolio or investment manager, or the manager's ability
to "beat the market."
Excess Returns = Stock Returns – Index Returns
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3.5 Risk
What is Risk?
The chance that actual returns will be different than expected is called as
risk. The Risk includes the possibility of losing some or all of the original
investment. Different versions of risk are usually measured by calculating
the standard deviation of the historical returns or average returns of a
specific investment. A high standard deviations indicates a high degree of
risk.
There are two types of risk namely:
i. Unique risk
ii. Market Risk
Total Risk = Unique Risk + Market Risk
Unique risk refers to that portion of total risk which is arises from specific
factors like development of new product, labour strike etc. It is considered to
be firm level risk and can be reduced.
Market Risk is that portion of total risk which is attributable to economic
factors like GDP, monetary policy etc.
Measuring Risk
The risk is usually measured in terms of standard deviations which is
calculated as follow:
Where
S = Standard Deviation
Ri = Returns for ith period
= Average returns
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37. Stock Returns of Sensex 20
3.5 Approaches of measurements
The stock returns, as seen above, are based on the price at the beginning and
closing period. There are two types of prices for each period i.e., Opening
price and Closing price.
The opening price is the price at which the security first trades upon the
opening of the stock exchange, on a given trading day or period.
The closing price is the final price at which the stock is traded on a given
trading day, on a stock exchange.
For the period of the one Financial Year, there exists as many as opening and
closing prices, as much as days the working of stock exchange in an financial
year. So, which prices are to be considered, for purpose of calculating stock
returns is a big dilemma. So for this purpose, the experts have recommended
four approaches. These four approaches of measuring the stock returns are;
a. Open to Open approach
b. Open to Close approach
c. Close to Open approach
d. Close to Close approach
Open to Open Approach:
In this approach of calculating stock returns, only Opening Prices of the
stock is considered. i.e.,
D + (OP1 – OP0)
R =
OP0
D = Divided for the period
OP1 = Opening Price at end of the period
OP0 = Opening Price at beginning of period
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38. Stock Returns of Sensex 20
Open to Close Approach:
In this approach of calculating stock returns, the opening price and the
closing price of the stock is considered. i.e., the Closing Price of the stock at
the end of the period and opening price of the stock at beginning of the
period are taken and stock return is measured as follows:
D + (CP1 – OP0)
R =
OP0
D = Divided for the period
CP1 = Closing Price at end of the period
OP0 = Opening Price at beginning of period
Close to Open Approach:
In this approach of calculating stock returns, the closing price and opening
price of the stock is considered. i.e., the Closing Price of the stock at the
beginning of the period and Opening Price of the stock at closing of the
period are taken and stock return is measured as follows:
D + (OP1 – CP0)
R =
CP0
D = Divided for the period
OP1 = Opening price at end of the period
CP0 = Closing Price at beginning of period
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39. Stock Returns of Sensex 20
Close to Close Approach:
In this approach of calculating stock returns, the only Closing Prices of the
stock is considered. i.e.,
D + (CP1 – CP0)
R =
CP0
D = Divided for the period
CP1 = Closing Price at end of the period
CP0 = Closing Price at beginning of period
This project is based on the Close to Close approach.
1. Weekly Stock Returns
The stock returns determined for the period of a week is called as weekly
stock returns.
2. Monthly Stock Returns
The stock returns determined for the period of a month is called as monthly
stock returns.
3. Quarterly Stock Returns
The stock returns determined for the period of a quarter consisting of 3
months is called as quarterly stock returns.
4. Half Yearly Stock Returns
The stock returns determined for the period of a half year consisting of 6
months or 2 quarters is called as half-yearly stock returns.
5. Yearly Stock Returns
The stock returns determined for the period of a year is called as yearly stock
returns.
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40. Stock Returns of Sensex 20
Chapter 4
ANALYSIS AND INTERPRETATION
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41. Stock Returns of Sensex 20
1. In the below table numbered 1.1, 1.2, 2.1, 2.2, 3.1 and 3.2, the weekly stock
returns of the Sensex 20 companies has been calculated for the financial year
2011-12.
The weekly stock returns is calculated as follows:-
D + CPL - CPO
R =
CPO
D = Divided for the period
CPL = Closing Price at Last working day of the week.
CPF = Closing Price at First working day of the week.
For the first week of FY 2011-12
CPL = Closing Price as on 8 April 2011.
CPF = Closing Price as on 1 April 2011.
Similarly, the stock returns for all 52 weeks in the year are calculated.
The dividends are adjusted for the closing price of the respective week of
realization of dividends.
Tables 1.1, 1,2, 2.1, 2.2, 3.1, 3.2 depicts (from the calculations) average
weekly stock returns of 20 companies, where in, it is, from the
calculations found that, 14 out of 20 companies show negative returns
and rest 6 shows positive.
Companies like Mahindra and Mahindra, HUL, ITC, Bajaj Autos, Tata
Motors etc have shown positive results.
And Companies like DLF, HindalCo, RIL, IDBI, SBI etc including BSE
Sensex have shown negative results.
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48. Stock Returns of Sensex 20
INTERPRETATION:
The average weekly returns of the 14 companies out if 20 companies was
found to be negative.
The average weekly returns of BSE Sensex was also found to be negative
i.e., -0.17 %.
Out of the 20 companies, DLF was the worst performing stock with
average weekly returns of -2.28 %, where as the Mahindra and Mahindra
was the best performing one with average weekly returns of 1.05 %.
The stocks of DLF is considered to be more risky as the Standard
Deviation of the weekly returns of the DLF found to be 15.31% which is
more than any other company or BSE Sensex.
On the other hand, Cipla’s stock was found to be least risky.
The banking companies performed almost in similar passion with same
level of average returns ranging from -0.37% to -0.04% and risk at 3% to
5%.
The automobile industries, surprisingly performed better, all four
companies viz Bajaj Autos, Mahindra and Mahindra, Maruti Suzuki and
Tata Motors, yielded positive returns.
Both the FMCG companies, i.e., HUL and ITC performed well by providing
positive average weekly returns.
All construction and real estate companies’ stock found to be more risky.
The metal industry companies i.e., JSW and HindalCo found to be risky
and also yielded negative returns at almost same level of risk.
The average weekly returns of petrochemical companies namely RIL and
ONGC were also negative.
The telecommunication and IT companies namely Airtel and Infosys
respectively found to be almost same risky but yielded negative returns.
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49. Stock Returns of Sensex 20
2. In the below tables numbered 4.1, 4.2, and charts numbered 1, 2, 3 and 4, the
monthly stock returns of the Sensex 20 companies has been calculated for the
financial year 2011-12.
In this context the monthly stock returns are calculated as follows:
D + (CPL – CPF)
R =
CPF
Where
D = Divided for the period
CPL = Closing Price at Last working day of the month.
CPF = Closing Price at First working day of the month.
For the Month of April
CPL = Closing Price as on 29th April 2011
CPF = Closing Price as on 1st April 2011.
Similarly, the stock returns for all 12 Months in the year are calculated.
The dividends are adjusted for the closing price of the respective month of
realization of dividends.
Tables numbered 4.1, 4.2, and charts numbered 1, 2, 3 and 4 tells us that
average monthly stock returns of 20 companies, where in, it is, from the
calculations found that, 15 out of 20 companies show negative returns and
rest 5 shows positive.
Here also the Companies like Mahindra and Mahindra, HUL, ITC, Bajaj Autos,
Tata Motors have yielded positive returns, which also showed similar
performance in weekly periods.
And Companies like HindalCo, RIL, L&T, and SBI etc have provided negative
returns.
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54. Stock Returns of Sensex 20
INTERPRETATION:
The average monthly returns of BSE Sensex was also found to be negative.
HindalCo was the worst performing stock, where as the Mahindra and
Mahindra was the best performing one even for the monthly returns.
The stock of JaiPrakash Associates, with Standard deviation of monthly
returns being 16.11%, found to be more volatile than any other company or
even BSE Sensex . On the contrary, HDFC stock was found to be least volatile
with SD of monthly returns being 4.37%.
The banking companies performed same but level of risk was low with HDFC
and was high with IDBI.
The automobile industry, overall showed the promising performance.
Both the FMCG companies, i.e., HUL and ITC performed well by providing
positive average monthly returns.
All the construction and real estate companies’ stocks found to be more risky.
The metal industries’ companies i.e., JSW and HindalCo found to be risky and
also yielded negative returns with almost same level of risk.
The average monthly returns of petrochemical companies namely RIL and
ONGC were disappointing.
The telecommunication industry was less risky than IT industry and also
yielded better than IT comparatively.
All the companies including BSE Sensex provided positive returns in the
month of October and almost all companies did well in the month of January
except Infosys. The month of June was also good, as most companies gave
positive results.
On the other hand, July was worst month, as maximum number of companies
including BSE Sensex reduced the shareholders wealth.
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55. Stock Returns of Sensex 20
3. Here the following table numbered 5 and charts numbered 5, 6, 7 and 8,
shows the quarterly returns of the Sensex 20 companies for the financial year
2011-12.
In this context the quarterly stock returns are calculated as follows:
D + (CPL – CPF)
R =
CPF
D = Divided for the period
CPL = Closing Price at Last working day of the quarter.
CPF = Closing Price at First working day of the quarter.
For the first quarter of FY 2011-12
CPL = Closing Price as on 30th June 2011.
CPF = Closing Price as on 1st April 2011
Similarly, the stock returns for all 4 Quarters in the year are calculated.
The dividends are adjusted for the closing price of the respective Quarter of
realization of dividends.
Table numbered 5, and charts numbered 5, 6, 7 and 8 gives us the
information about quarterly stock returns of 20 companies, where in, it is,
from the calculations found that, 15 out of 20 companies show negative
returns and rest 5 shows positive.
It can be determined, from the table, that, almost all companies did well in
the in fourth quarter i.e., the period from January to March.
Almost all the companies performed worst in the second quarter i.e., the
period from October to December.
In the Odd quarters, the DLF, L&T, Jaiprakash Associates, HindalCo, IDBI etc
were the great losers.
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