Equity Analysis on IT & Banking Final
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Transcript of Equity Analysis on IT & Banking Final
A PROJECT REPORT ON
“EQUITY ANALYSIS OF IT & BANKING STOCKS – A COMPARITIVE STUDY”
At
NETWORTH STOCK BROKING LIMITED
MASTER OF BUSINESS ADMINISTRATION
Submitted by:
G.AIYYAPPA
(ROLL NO: 09tf1e0015)
DEPARTMENT OF BUSINESS MANAGEMENT
PUJYA SHRI MADHAVANJI COLLEGE OF ENGINEERING &
TECHNOLOGY
JNT UNIVERSITY
HYDERABAD
1
(2009-2011)
DECLARATION
I herby declare that the project titled “EQUITY ANALYSIS OF
IT & BANKING STOCKS – A COMPARITIVE STUDY” done at Networth Stock Broking Limited submitted by
me as part of partial fulfillment for the award of the Masters of Business Administration, at P u j y a S h r i
M a d h a v a n j i C o l l e g e o f E n g i n e e r i n g a n d Te c h n o l o g y , J N T U Hyderabad is a record of bonafide
work done by me.
I also declare that this report has to my knowledge is my own and is neither submitted to any other university nor published
any time before.
(G.AIYYAPPA)
2
ACKNOWLEDGEMENT
Accomplishment of any work involves many people and this project is no exception. I take this opportunity
to express my heartfelt thanks to all those who have directly or indirectly contributed to make this Project a
success.
I am indebted to the Management of Networth Stock Broking Ltd., for providing me the opportunity to
carry out the Project work in their esteemed organization.
I take this opportunity to express my heartfelt thanks to Mr. A VENKAT REDDY and the entire Equities
team at Networth for their cooperation and support during the project.
I am highly indebted to the Management of Mrs. Kanchana, H.O.D. Department of Business Management
for his valuable suggestions and advice.
It was great experience to work under the inspiring guidance of Mrs. Saritha Associate Professor,
Department of Business Management. I take this opportunity to express my gratitude to his valuable advice
and suggestions for completing this project.
At last, I would like to thank my family and friends of my college for the help and cooperation extended in
this endeavor of mine.
3
ABSTRACT
For every company there is need of the large capital for making investment in business. In order to get that
large capital, the company will come for the public issue. When the company comes for public issue, people
will invest money in that specific stock. Here, Investment is defined as an activity that commits funds in any
financial form in the present with an expectation of receiving additional return in the future.
The expectations bring with it a probability that the quantum of return may vary from a minimum to a
maximum. This possibility of variation in the actual return is known as investment risk. Thus every
investment involves a certain amount of return and risk.
Risk analysis is a technique to identify and assess factors that may jeopardize the success of a project or
achieving a goal. This technique also helps to define preventive measures to reduce the probability of these
factors from occurring and identify countermeasures to successfully deal with these constraints when they
develop to avert possible negative effects on the competitiveness of the company.
Return on Equity (ROE)
Sometimes ROE is referred to as Stockholder's return on investment. It tells the rate that shareholders are
earning on their shares..The rate of interest or dividend may be decided by the company.
ROE = Net Income after Tax
-------------------------------------4
Share shoulders Equity
Net worth has been successfully providing premium financial services and information for more than a
decade. Our aim has consistently been to empower investors to take charge of their financial future & help
them grow their Net worth.
Net worth has always endeavored to make a difference in the financial services space. It constantly focuses
on scaling and upgrading the technology infrastructure so as to provide the best services to the investors. We
have a presence of over 300 centre’s across India
In spite of many private stock houses at present involved in online trading in India, the NSE and BSE are
among the largest exchanges. They handle huge daily trading volumes, supporting large amounts of data
traffic, and possessing a countrywide network. The automated online systems used for trading by the
national stock exchange and the Bombay stock exchange are the NIBIS or NSE's Internet Based Information
System and NEAT for the national stock exchange and the BSE Online Trading system or BOLT for the
Bombay stock exchange.
The data that is used in this project is of secondary in nature. The data is to be collected from secondary
sources such as various websites, journals, newspapers, books, etc., the analysis used in this project has been
done using selective technical tools. In Equity market, risk is analyzed and trading decisions are taken on
basis of technical analysis.
Sample size of the industry sector: 2 sectors (Software & Banking)
Sample size of the companies in each sector: 3
We compare both sectors of Information Technology and Banking sector.
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CHAPTER PAGE NO'S
CHAPTER 1
INTRODUCTION
OBJECTIVE OF THE STUDY
NEED & SIGNIFICANCE OF THE STUDY
RESEARCH METHODOLOGY
LIMITATIONS OF THE STUDY
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10
11
11
14
CHAPTER 2
IT PROFILE
BANKING PROFILE
COMPANY PROFILE
INDUSTRY PROFILE
16
27
36
40
CHAPTER 3
ANALYSIS
INTERPRETATIONS
55
61
CHAPTER 4
FINDINGS AND SUGGESTIONS
CONCLUSION
BIBILIOGRAPHY
74
76
77
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INTRODUCTION
Investment may be defined as an activity that commits funds in any financial form in the present with an
expectation of receiving additional return in the future. The expectations bring with it a probability that the
quantum of return may vary from a minimum to a maximum. This possibility of variation in the actual
return is known as investment risk. Thus every investment involves a return and risk.
Investment is an activity that is undertaken by those who have savings. Savings can be defined as the excess
of income over expenditure. An investor earns/expects to earn additional monetary value from the mode of
investment that could be in the form of financial assets.
Investment
There are a large number of investment avenues for savers in India. Some of them are marketable and
liquid, while others are non-marketable. Some of them are highly risky while some others are almost risk
less.
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Investment avenues can be broadly categorized under the following heads:
Corporate Securities:
Joint stock companies in the private sector issue corporate securities. These include equity shares,
preference shares, and debentures. Equity shares have variable dividend and hence belong to the high risk-
high return category; preference shares and debentures have fixed returns with lower risk.
Equity Shares: Equity means equal, Equity shares means distributing the capital equally to the public at
large. These shares may be issued in face value or premiums. The returns may be high or low according to
the company performance. The return may be in terms of dividend or shares.
Preference Shares: Preference means, giving more interest to a particular shareholders who buyed the
preference shares. Comparing to the Equity shares preference shares are more profitable and secure.
Debentures/Bonds: Debentures are also a type of investment like Equity or Preference shares but the
Debentures is for Long Term Investment with fixed interest and time. Whereas Bond is also like Debenture
but compare to Debenture it is more secure where Debenture is not. It is also a long term investment with
fixed interest.
Derivatives: Derivatives is an emerging market on these days comparing to capital market. In Derivatives
we trade all types of commodities like Gold, Silver, Copper, Crude Oil, wheat, Sugar etc., Where as in
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capital market we trade only Equity shares. Derivatives is a worldwide market, it may be traded on
Currency, Indexes, Stocks etc.,
The classification of corporate securities that can be chosen as investment can be depicted as shown below:
OBJECTIVE OF THE STUDY
Establishing nationwide trading facility for all types of securities
Providing fair, efficient & transparent securities market using electronic trading system
To understand the performance of few Indian industry sectors viz. Software & Banking.
To understand the performance of few Indian companies of the above two sectors.
To make comparative analysis of inter and intra sectors, basing on past Two months data (April
2011 - May 2011).
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Need & Significance of the Study
India is one of the fastest growing economies. Recently it touched the growth figure of 7%. It is also the destination
of investment for most of the foreign investors. From the past 3 to 6 years Indian stock markets are making some
remarkable performances. But most of the investors are interested to invest in index stocks i.e. large cap stocks only.
There is a wrong notion that small cap stocks are risky. Upon study on the performance of 50 small cap
stocks revealed that they can also yield good returns provided they have strong fundamentals. So our report on this
study gives an investor a deep insight in the importance of small cap stocks
RESEARCH METHODOLOGY:
The data that is used in this project is of secondary nature. The data is to be collected from secondary sources such as
various websites, journals, newspapers, books, etc., the analysis used in this project has been done using selective
technical tools. In Equity market, risk is analyzed and trading decisions are taken on basis of technical analysis.
Sample size of the industry sector: 2 sectors (Software & Banking)
Sample size of the companies in each sector: 3.
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METHOD OF CALCULATION:
The Data taken for the 2 sectors is 2 months Data (i.e.) 1st April 2011 – 31st FEB 2010. The data for
calculation purpose is taken on weekly basis starting from Monday. The formulae used for calculating
percentage change is
Formulae:
CURRENT WEEK – PREVIOUS WEEK /PREVIOUS WEEK * 100
SHARE VALUATION
Share valuation is the process of assigning a rupee value to a specific share. An ideal share valuation
technique would assign an accurate value to all shares.
Equity valuations could be classified into the following categories:
1. Earnings valuation.
2. Revenues valuation.
3. Cash Flow valuation.
4. Asset valuation.
5. Yield valuation.
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Sources of Financial Information
Market Data:
1. Stock Exchange daily official list.
2. Directory of the stock Exchange.
3. RBI’s weekly statistical supplements.
4. Newspapers.
5. The reports and Newsletter of investment brokerage and counseling firm.
Company Data:
1. Company’s Annual Reports and prospectuses.
2. Stock Exchange official directory.
3. Newspapers, Brokerage firms, and news columns.
Online sources:
1. CIMM (by CENTER FOR MONITORING THE INDIAN ECONOMY).
2. NSE NDIA
3. BSE INDIA
4. NETWORTH DIRECT
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LIMITATIONS OF THE STUDY
Lack of time in performing the project in detail study.
Only a part of the vast topic being covered due to lack of time. (Risk & Return analysis)
Lack of knowledge and experience in the field of the stock market.
Data taken from online sources from Respected websites.
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INFORMATION TECHNOLOGY OUTLOOK
IT Profile:
Information technology (IT) or information and communication technology (ICT) is a broad subject
which deals with technology and other aspects of managing and processing information, especially in large
organizations. Particularly, IT deals with the use of electronic computers and computer software to convert,
store, protect, process, transmit, and retrieve information. Over the past 20 years, its prevalence has
dramatically increased so that it is now a part of nearly every aspect of daily life.
INFOSYS TECHNOLOGIES
Infosys Technologies Ltd. (NASDAQ: INFY) was started in 1981 by seven people with US$ 250. Today,
we are a global leader in the "next generation" of IT and consulting with revenues of US$ 6.04 billion (LTM
March-11).
Infosys defines designs and delivers technology-enabled business solutions for Global 2000
companies. Infosys also provides a complete range of services by leveraging our domain and business
expertise and strategic alliances with leading technology providers.
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Our offerings span business and technology consulting, application services, systems
integration, product engineering, custom software development, maintenance, re-engineering, independent
testing and validation services, IT infrastructure services and business process outsourcing.
Infosys pioneered the Global Delivery Model (GDM), which emerged as a disruptive force in
the industry leading to the rise of offshore outsourcing. The GDM is based on the principle of taking work
to the location where the best talent is available, where it makes the best economic sense, with the least
amount of acceptable risk.
Infosys has a global footprint with 64 offices and 63 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 130,820 employees as on March 31, 2011. Infosys
takes pride in building strategic long-term client relationships. 98% of our revenues come from existing
customers (FY 11)
KV Kamath appointed has a new chairman of Infosys, and Shibulal has a new CEO on Apr,
2011, The over $6 billion Infosys Technologies has also appointed current CEO S Gopalakrishnan as the
Executive co-Chairman and promoted COO S D Shibulal as CEO and MD.
Infosys reports Q4 and FY 2011 results
* Fiscal revenues at US$ 6.04 billion
* Up 25.8% YoY
* 18.6% YoY growth in earnings per American Depositary Share
17
HISTORY:
Infosys was Incorporated on 2nd July 1981as Infosys Consultants Private Limited at
Mumbai. INFOSYS was promoted by software professionals, Mr. S. Gopalakrishnan, Mr. K. Dinesh,
Nandan M Nilekani, Mr. S.D. Shibulal, Mr. N.R. Narayana Murthy & Mr. N S Raghavan.
The company is engaged in software development in the form of services, turnkey projects
and products for the domestic and export market. The software development is targeted towards the
distribution, banking, telecommunication and manufacturing sectors worldwide. On 1992, The name
changed to Infosys Technologies Private Limited, and the registered office was moved to Bangalore. Later
the company was converted into a Public Limited Company under the name Infosys Technologies Ltd.
The company provides software maintenance, re-engineering and downsizing of software
applications in these market segments. It also markets internationally, two well-known packages, one for the
distribution industry (DMAP) and one for retail banking. On1993The Company turned up with ISO 9000
certification.
Infosys issued 19,76,100 No. of equity shares of Rs 10 each , subscribed and paid-up
(15,84,000 shares to directors, promoters; 2,68,100 shares to employees of the company and 1,24,000 shares
at a premium., of Rs 70 per to shareholders on right basis). The company has a joint venture in USA with
KSA (Kurt Salmon Associates). The company also has an offshore software development centre for General
Electric USA.
During the year marketing offices were opened in San Francisco, Cincinnati, New York and
Dallas. Infosys Technologies Ltd has signed up with the US-based. Copeland companies to set up a client
services workstation (CSW) for providing retirement planning products and services to non-profit
organisations (NPOs). The Company had tied up with German e-commerce firm Preis24.com to develop
solutions for business-to-business e-commerce.
Infosys Technologies Ltd has entered into an agreement with the US-based CyberShop
International Inc. 1999. Infosys Technologies Ltd has tied up with Franklin Templeton Investments (FTI)
for interactive information infrastructure. Microsoft Corporation and Infosys Technologies are joining hands
18
to form an alliance, marking the coming together of a global software giant and a wannabe global
information technology major. Nortel Networks is joining hands with the company to set up a Wireless
centre of Excellence in Bangalore. Alpha Data, a leading information services company in the UAE, has
tied up with Infosys Technologies to market and support banking software products from Infosys in the
UAE. The Institute of Chartered Accountants of India awarded the Silver shield for the Best-Presented-
Accounts, amongst the entries received from the non-financial, private sector companies for the year 1995.
The Economic Times Awards for Corporate Excellence was won by Bangalore-based software giant Infosys
Technologies of the Year.
Infosys is the first ever India registered company to be listed in the Nasdaq stock market in
USA. After becoming the first Indian company to get a US listing, Infosys Technologies has emerged as one
of the most precious companies listed on NASDAQ in terms of market capitalisation in its category of
software consulting and services companies.
The Company it had tied-up with Japan's Toshiba Corporation to provide enterprise resource
planning (ERP) software solutions for Toshiba's business processes. Jammu and Kashmir Bank has tied up
with Infosys Technologies to offer internet banking and for its e-commerce initiatives. The Company Global
Development Centre is set up in London.
In 2001, Infosys Technologies has signed a MoU with the Andhra Pradesh Government for
establishing a software development campus at Hyderabad. Infosys Technologies is to set up its second
software centreat Pune in Hinjewadi. The first and biggest employees’ stock option plan (ESOP) by an
Indian software company has matured with the lock-in of Infosys Technologies’ 1994 ESOPs ending last
week giving eligible employees the option to convert it into hard currency.
In 2002, Receives Motilal Oswal Award for Wealth Creation for 1996-2001. Mr. Nandan
Nilekani becomes the new CEO of the company. Mr. Narayanamurthy assumes the role of Chairman &
Chief Mentor Signs Joint Venture Agreement with Punjab National Bank for the implementation of
Centralised Banking Solution. Infosys Tech bags prestigious Corporate University Xchange Excellence
Award for 2002
19
In 2003, Fortune names Narayana Murthy, Nandan Nilekani as `Asia's Businessmen' of the
year 2003 making them the first Indians to win the award. Infosys gets ICAI award for the year '03
In 2008, Infosys & Nihon Unisys sign MoU for Strategic Business Deployment & Joint
Development for Sales & Solution Service. DSB Bank Partners with Finacle from Infosys for Core
Banking-led Transformation
Infosys Technologies has bagged a five-year outsourcing and support agreement from BP
where Infosys will manage and operate a large portion of business systems for BP under the terms of the
agreement. The company has announced successful implementation its first IT enabled end-to-end business
transformation program for Thermax. Infosys was ranked India's 'Most Admired Company' in The Wall
Street Journal Asia 200, a listing of Asia's leading companies in 2010. Infosys has achieved this distinction
for nine years in a row.
Infosys is the leader among IT service providers, according to global retailers in the 2010
RIS IT Services LeaderBoard survey. Infosys is India's most admired company: The Wall Street Journal.
Infosys among Top Ten Technology Companies: BCG Report. Infosys is among the top ten value creators
in technology and telecommunications, according to the 2010 Value Creators Report of The Boston
Consulting Group.
20
TATA CONSULTANCY SERVICES
Tata Consultancy Services Limited (TCS) (BSE: 532540, NSE: TCS) is an Indian IT services, TCS
Founded in 1968 Founded by JRD Tata, TCS is business solutions and outsourcing company situated in
Mumbai, India. TCS is the largest provider of information technology in Asia and second largest provider of
business process outsourcing services in India. TCS has offices in 47 countries with more than 142 branches
across the globe. The company is listed on the National Stock Exchange and Bombay Stock Exchange of
India. TCS is ranked at 21 in the list of global IT services ranking of service providers. Tata Counsultancy
Service. TCS as a Revenue of US$ 8.2 billion (2011) and Employees of 200,300+ (April 2011). Tata Group
is a Parent company of TCS.
History:
It began as the "Tata Computer Centre", for the company Tata Group whose main business
was to provide computer services to other group companies. F C Kohli was the first general manager. J. R.
D. Tata was the first chairman, followed by pankaj roy.
One of TCS' first assignments was to provide punched card services to a sister concern, Tata
Steel (then TISCO). It later bagged the country's first software project, the Inter-Branch Reconciliation
System (IBRS) for the Central Bank of India. It also provided bureau services to Unit Trust of India, thus
becoming one of the first companies to offer BPO services.
The Company has launched its most integrated business accounting software `Personal
Accountant' in Guwahati. The Company has emerged as Asia's largest software and services company
launched its computer security consultancy practice.
21
The Tata Consultancy Services has opened four new offices in the US, which would focus on
high quality technology services and innovative research and development. Visual Soft Technologies Ltd.
and Tata Consultancy Services have each bagged two awards from the Hyderabad Software Exporters
Association for the year 2000. Tata Consultancy Services has received the Global Partnership Award 2000
from AIESEC International, the Rotterdam-based NGO.
In 2001, The Company has signed an MoU with the Indian Institute of Technology, Madras
to set up a Centre of Excellence on computational engineering. Tata Consultancy Services has earmarked an
Rs 200-crore corpus for funding research and development initiatives. This year, the company’s focus areas
for R&D will be bio-informatics and Net security. Tata Consultancy Services and Infosys have emerged as
the leading Indian software exporters during 2000-01, clocking exports worth Rs 2,870.26 crore and Rs
1,852.94 crore, respectively.
Tata Consultancy Services, a global software solutions and consulting services enterprises,
has signed up with Ericsson worldwide to provide cost-effective solutions in telecom through its Global
Development Centre in Hyderabad. Andhra Pradesh Technology Services (APTS) join hands with TCS to
issue digital certificates. Tata Consultancy Services Ltd ties up with Formula One racing car champion
Ferrari to provide information technology and engineering services for the development of the team's racing
car for the 2005 season.
In 2005, TCS sets up new development centre in Kochi. Tata Consultancy Services (TCS)
becomes country's first IT Company to cross the billion mark as it closed fiscal 2005 with Rs 9,748.47 crore
in revenues. At Rs 1,976.90 crore in net profit, it is also the first software giant to cross 0 million in net
profit. TCS gets UK Trade and Investment Special Recognition Award
In 2006, Tata Consultancy Services (TCS) got an interior design deal from US airframe
manufacturer Boeing Company and will work closely with its customer to design the interiors of new
aircraft. On 2007 Tata Consultancy Services (TCS) has bagged .2 billion outsourcing contract from Nielsen
partners, the largest ever-outsourcing deal for any Indian IT player. Tata Consultancy Services Ltd has
announced that Standard & Poor's Ratings Services has assigned the Company a corporate credit rating of
'BBB' with a positive outlook.
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In 2008, Tata Consultancy Services Ltd (TCS) on April 05, 2008 has announced that it has
signed a new multi-year contract with Chrysler LLC to provide a comprehensive portfolio of IT services.
The scope of this contract integrates the contract TCS announced in February with Chrysler. Tata
Consultancy Services (TCS) has signed a five-year global contract with telecom giant Ericsson. TCS will
deliver application maintenance and development services for Ericsson's internal IT operations. TCS will be
one of the two strategic partners responsible for delivering application maintenance services to Ericsson. It
will also be a preferred supplier for application development services.
Tata Consultancy Services (TCS) has bagged a multi-year IT solutions contract from
Infineon Technologies AG (IFX), a semiconductor manufacturer. Under the agreement, TCS will operate
and maintain solutions for the Infineon's Supply Chain Management (SCM) landscape. The Infineon SCM
Planning operations will be operated out of Munich, Germany and Bangalore, India. TCS has won an
million outsourcing contract from UK's Child Maintenance and Enforcement Commission (CMEC). The
order is first in a series of almost -3 billion worth of contracts to be awarded by UK's state-owned
departments.
Tata Consultancy Services opened a new Global Delivery Center in Buenos Aires, Argentina
- the first company to officially inaugurate its facilities in the new Technology District of the City of Buenos
Aires. Tata Consultancy Services (TCS) has opened a new global delivery centre in Buenos Aires,
Argentina. Tata Consultancy Services Ltd (TCS), India's top software services exporter, today said that it
had signed a multi-year outsourcing contract with Norway's Telenor.
23
WIPRO
Wipro IT Business, a division of Wipro Limited (NYSE:WIT), is amongst the largest global IT services,
BPO and Product Engineering companies. In addition to the IT business, Wipro also has leadership position
in niche market segments of consumer products and lighting solutions. The company has been listed since
1945 and started its technology business in 1980. Today, Wipro generates USD 6 billion (India GAAP
figure 2009-10) of annual revenues. Its equity shares are listed in India on the Mumbai Stock Exchange and
the National Stock Exchange; as well as on the New York Stock Exchange in the US.
Wipro makes an ideal partner for organizations looking at transformational IT solutions
because of its core capabilities, great human resources, commitment to quality and the global infrastructure
to deliver a wide range of technology and business consulting solutions and services, 24/7. Wipro enables
business results by being a ‘transformation catalyst’. It offers integrated portfolio of services to its clients in
the areas of Consulting, System Integration and Outsourcing for key-industry verticals.
With more than 100,000 associates from over 70 nationalities and 72 plus global delivery
centers in over 55 countries, Wipro’s services span financial services, retail, transportation, manufacturing,
healthcare services, energy and utilities, technology, telecom and media. Wipro’s unwavering focus has
been on business transformation with matchless innovation in service delivery and business models. More
than 800 active clients that include governments, educational institutes, utility services, and over 150 Global
Fortune 500 enterprises have benefited from this approach.
Wipro is at the forefront of technological and business co-innovation with 136 patents and
invention disclosures. With enhanced business performance at the core of its deliveries due to its strong
R&D and Innovation focus, Wipro gets an enviable 95 percent repeat business. We make our clients
business more efficient through a combination of process transformation, outsourcing, consulting and
24
technology products and services. As the world’s first SEI CMM Level 5 Company, Wipro endeavors to
deliver reliability and effectiveness to its customers by maintaining high standards in service offerings
through robust internal processes and people management systems.
HISTORY:
Wipro was incorporated on 29th December, 1945 at Mumbai. The Company Manufacture vegetable ghee,
vanaspati, refined oils including salad oil, soap, waxs and tin containers for packing, crushing and oil
milling trading in oils and oilseeds and manufacture of fluid power products. The Products trade names
were Kisan, Sunflower and Camel.
In 1977 the name of the Company was changed from Western India Vegetable Products
Ltd., to Wipro Products Ltd., with effect from 7th June. It was again changed to Wipro Ltd., with effect
from 28th April, 1984. Diversifies into information technology. Later in 1982, The Name again changed
from Wipro Products Limited to Wipro Limited. `Ralak' a tulsi based family soap and `Wipro Jasmine' a
toilet soap was launched.
Also in 1989, The Company set up a joint venture company with General Electric of U.S.A.,
in the name of Wipro GE Medical Systems Pvt. Ltd., for the manufacture, sale and service of diagnostic
and imaging products. The Joint Venture has also an OEM sourcing arrangement with Elpro International
Ltd., for locally made x-ray products. In 1990, the joint venture became a subsidiary of the Company. In
1990 Santoor talcum powder, a brand extension and Wipro Baby Soft were launched in the market. The
Company established a relationship with Eaton Corporation, U.S.A. for marketing of hydraulic products in
India.
In 1991 "Tipping systems" were launched. The Company undertook to set up a high
technology plant and R&D Centre at Aurangabad with an investment of Rs 40 crores. The product range
was to include incandescent lamps, linear and circular fluorescent lamps, accessories and luminaries. Eaton
Hydraulic products were launched. The Company set up a new Unit Wipro Financial Services Ltd., for
serving customers with capital resources, expertise and ideas to help solve their financial needs. The
Company launched baby soft toiletries viz. soap, powder and oil based on natural ingredients of lanolin,
25
olive, milk and almonds. Wipro is providing services of IT & IS consulting for E-business Transformation,
Electric Commerce, Web Enabling, ERP, Data Warehousing, Customer Relationship Management.
In 1996 Registered office of Wipro shifted from Mumbai to Bangalore. The company has
been providing design and development services to the technology sector. A MOU was signed with Nenoki
AG, Switzerland for technical know-how. Wipro Consumer Care Segment of the Company has been
manufacturing Santoor, a sandal and turmeric based safe soap for skin with natural ingredients. The Wipro
Consumer Care division relaunched milk and rose toilet soap in north India. Wipro Shikakai was extended
to Wipro herbal, India's first anti dandruff soap. Wipro's Camel brand is a leader catering to the commercial
biscuit manufacturers and bakeries.
Wipro SuperGenius personal computers (PCs) have become the only Indian PC range to
obtain the US-based National Software Testing Laboratory's (NSTL) Certification for Year 2000 (Y2K)
compliance. The operating systems of Wipro SuperGenius PCs are also Y2K compliant. Wipro Ltd, the
Bangalore-based InfoTech major, will be the first company in Corporate India to split its part value shares
of Rs 10 each. Wipro's share capital is Rs 45.83 crore, comprising 45.83m shares of the face value of Rs 10
each. The sub-division of shares will be subject to Sebi guidelines, said a notice issued by the company to
the BSE.
Wipro is also proposing to set up a new employee stock option plan for its permanent
employees. Yet another resolution the company takes up at its AGM is to split the existing Rs 10 equity
shares of Wipro into five each of Rs 2 face value. Wipro Limited has joined hands with a global telecom
major KPN (Royal Dutch telecom) to form a joint venture company to provide internet services in India.
Wipro would control the majority stake of 55 per cent while the remaining will be with KPN.
Wipro has become the second largest company in terms of market capitalisation on the
Bombay Stock Exchange. The Company has been awarded first prize, at national level, for outstanding
export performance during 1999-2000 from the Software Technology Parks of India. Investment
Information and Credit Rating Agency Ltd has reaffirmed the `A1+' rating assigned to the Rs. 100-crore
commercial paper programme of Wipro Ltd. Recently in 2010, Wipro Technologies announced the
inauguration of its new development centre in Melbourne.
26
Banking Profile
Banking in India originated in the last decades of the 18th century. The oldest bank in
existence in India is the State Bank of India, a government-owned bank that traces its origins back to June
1806 and that is the largest commercial bank in the country. Central banking is the responsibility of all the
Banks. Reserve Bank of India, which in 1935 formally took over these responsibilities from the then
Imperial Bank of India, relegating it to commercial banking functions. After India's independence in 1947,
the Reserve Bank was nationalized and given broader powers. In 1969 the government nationalized the 14
largest commercial banks; the government nationalized the six next largest in 1980.
Currently, India has 96 scheduled commercial banks (SCBs) - 27 public sector banks (that is
with the Government of India holding a stake), 31 private banks (these do not have government stake; they
may be publicly listed and traded on stock exchanges) and 38 foreign banks. They have a combined network
of over 53,000 branches and 17,000 ATMs.
27
AXIS
Axis Bank was the first of the new private banks to have begun operations in 1994, after the Government of
India allowed new private banks to be established. The Bank was promoted jointly by the Administrator of
the specified undertaking of the Unit Trust of India (UTI - I), Life Insurance Corporation of India (LIC) and
General Insurance Corporation of India (GIC) and other four PSU insurance companies, i.e. National
Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd.
and United India Insurance Company Ltd.
The Bank as on 31st March, 2011 is capitalized to the extent of Rs. 410.54 crores with the
public holding (other than promoters and GDRs) at 53.60%. The Bank's Registered Office is at Ahmedabad
and its Central Office is located at Mumbai. The Bank has a very wide network of more than 1281 branches
(including 169 Service Branches/CPCs as on 31st March, 2011). The Bank has a network of over 6270
ATMs (as on 31st March, 2011) providing 24 hrs a day banking convenience to its customers. This is one of
the largest ATM networks in the country. The Bank has strengths in both retail and corporate banking and is
committed to adopting the best industry practices internationally in order to achieve excellence.
History:
The Bank was incorporated on December, 1993 and Certificate of business on 14th
December. The Bank transacts banking business of all description. UTI Bank Ltd. was promoted by Unit
Trust of India, Life Insurance Corporation of India, General Insurance Corporation of India and its four
subsidiaries. The bank was the first private sector bank to get a license under the new guidelines issued by
the RBI.
In 1997, The Bank obtained license to act as Depository Participant with NSDL and applied
for registration with SEBI to act as `Trustee to Debenture Holders'. Rupees 100 crores was contributed by
UTI, the rest from LIC Rs 7.5 crores, GIC and its four subsidiaries Rs 1.5 crores each.In1998, The Bank has
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28 branches in urban and semi urban areas as on 31st July. All the branches are fully computerised and
networked through VSAT. ATM services are available in 27 branches.
The Bank came out with a public issue of 1,50,00,000 No. of equity shares of Rs 10 each at a
premium of Rs 11 per share aggregating to Rs 31.50 crores and Offer for sale of 2,00,00,000 No. of equity
shares for cash at a price of Rs 21 per share. Out of the public issue 2,20,000 shares were reserved for
allotment on preferencial basis to employees of UTI Bank. Balance of 3,47,80,000 shares were offered to
the public.
The company offers ATM cards, using which account-holders can withdraw money from any
of the bank's ATMs across the country which are inter-connected by VSAT. UTI Bank has launched a new
retail product with operational flexibility for its customers. In1999 UTI Bank and Citibank have launched an
international co-branded credit card. UTI Bank and Citibank have come together to launch an international
co-branded credit card under the MasterCard umbrella.
In 2007, The name has been changed from UTI Bank Ltd to Axis Bank Ltd. AXIS Bank Ltd
has informed that Fitch Ratings on December 14, 2007, has upgraded the Bank's National Long-term rating
to 'AAA(ind)' from 'AA+(ind)'. Axis Bank launches Platinum Credit Card, India's first EMV chip based
card. Axis Bank, on Wednesday entered into a strategic alliance with Motilal Oswal, the financial services
firm, in order to facilitate the online trading for the bank's customers.
29
HDFC Bank
HDFC Bank Limited (BSE: 500180, NSE: HDFCBANK, NYSE: HDB, NASDAQ: HDB) is a major
Indian financial services company based in India, incorporated in August 1994, after the Reserve Bank of
India allowed establishing private sector banks. The Bank was promoted by the Housing Development
Finance Corporation, a premier housing finance company (set up in 1977) of India. HDFC Bank has 1,725
branches and over 5,000 ATMs, in 780 cities in India, and all branches of the bank are linked on an online
real-time basis. As of 30 September 2008 the bank had total assets of Rs.1006.82 billion. For the fiscal year
2010-11, the bank has reported net profit of Rs.3,926.30 crore (US$871.64 million), up 33.1% from the
previous fiscal. Total annual earnings of the bank increased by 20.37% reaching at Rs.24,263.4 crore
(US$5.39 billion) in 2010-11 And Employees working under HDFC are 51,888 (2010).
The bank was in the name of 'HDFC Bank Limited', with its registered office in Mumbai,
India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. It is one of
the Big Four banks of India, along with State Bank of India, ICICI Bank and Punjab National Bank—its
main competitors.
HISTORY
Housing Development and Financial Corporation is new private sector Bank promoted by Housing
Development Corporation Ltd. (HDFC). The Bank was incorporated on August, 1994.The bank is the first
of its kind to receive an in-principle approval from the RBI for establishment of a bank in the private sector.
Certificate of Commencement of Business was received on October 1994 from RBI.
The Bank transacts both traditional commercial banking as well as investment banking.
HDFC, the promoter of the bank has entered into an agreement with National West minister Bank Pc. and
its subsidiaries (Natwest Group) for subscribing 20% of the banks issued capital and providing technical
assistance in relation to the banks proposed banking business.
30
70 No. of equity shares issued to subscribers to the Memorandum & Articles of Association
on August 1994. On the same date 500,00,000 equity shares were allotted to HDFC promoters. 509,20,000
shares were allotted to HDFC Employees Welfare Trust and HDFC Bank Employees Welfare Trust on
December, 1994.
HDFC Bank, one of the nine new-generation private sector banks, has planned to set up an
all-India on-line automated teller machine (ATM) network. HDFC Bank has become the first bank in India
to link up its automated teller machine (ATM) network with all the three major payment systems world-
wide.
HDFC Bank will be the first bank in the Asia-Pacific region to connect the American
Express (Amex) payment system. The HDFC Bank is expanding its ATM network to connect to American
Express Interchange based in Phoenix, Arizona, USA. With this connectivity, HDFC Bank has become the
first bank in the Asia-pacific region to connect to the Amex Interchange. HDFC Bank was the first to sign
up with AMEX in December of 1998. HDFC Bank, has tied up with BPL Ltd to offer Internet-enabled
supply-chain management and business-to-consumer (B2C) e-commerce services to corporates.
In 2000, HDFC Bank also signed a memorandum of understanding with Singapore Telecom's
e-commerce arm Sesami.Com Pvt Ltd. The Bank latter also entered into a partnership agreement with
National Computer Systems, the e-commerce unit of Singtel. A new company called SESAMi.com (India)
has been formed by a strategic alliance between HDFC Bank and Singapore Telecom's e-commerce
company SESAMi.com, to offer e-commerce solutions for the Indian market.
In2001, The Bank has launched the international Maestro debit card in association with
Master Card. HDFC Bank will launch its credit card in June through link-ups with MasterCard and Visa.
HDFC Bank entered into a strategic tie-up with Tally Solutions Pvt. Ltd. to offer online real time accounting
services to small and medium enterprises.
In 2002, HDFC Bank unveils Silver card in Hyderabad. HDFC Bank launched new products
to its wealth management programme to increase its customer base. The bank introduced a non-interactive
product named Financial Planner, which would be available for all its customers for an annual fee starting
from Rs 10,000. The bank is offering fee based advisory programme to the mass affluent segment, which
was earlier offered to high net worth customers. The wealth management programme would cater to
31
individual needs taking into account various factors such as customer's age, financial goals and risk profile,
which includes equity, MFs and debt instruments such as RBI Relief Bonds.
In 2008, HDFC Bank Ties Up With Postal Department, Extends Rural Reach. HDFC Bank
Wins ‘Nasscom IT User Award The Year'. HDFC Bank Opens Its First Overseas Branch in Bahrain and
HDFC Bank Launches India’s First Rural Banking BPO at Tirupathi. HDFC Bank Launches India’s First
Online Market Linkage Programme for Self Help Groups.
32
ICICI
ICICI Bank Limited (NSE: ICICIBANK, BSE: 532174, NYSE: IBN, NASDAQ: IBN) is a major banking
and financial services company based in Mumbai. It is the second largest bank in India and the largest
private sector bank in India by market capitalization. The bank also has a network of 2,529 branches (as on
31 March 2010) and about 6,102 ATMs in India and presence in 19 countries, as well as some 24 million
customers (at the end of July 2007). ICICI Bank offers a wide range of banking products and financial
services to corporate and retail customers through a variety of delivery channels and specialization
subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and
asset management. ICICI Bank is also the largest issuer of credit cards in India. ICICI Bank's shares are
listed on the stock exchanges at BSE, NSE, Kolkata and Vadodara (formerly Baroda); its ADRs trade on the
New York Stock Exchange (NYSE).
ICICI Bank is India's second-largest bank with total assets of Rs. 4,062.34 billion (US$ 91
billion) at March 31, 2011 and profit after tax Rs. 51.51 billion (US$ 1,155 million) for the year ended
March 31, 2011. The Bank has a network of 2,532 branches and 6,301 ATMs in India, and has a presence in
19 countries, including India.
The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in
United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre
and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia
and Indonesia. Our UK subsidiary has established branches in Belgium and Germany.
33
HISTORY
The ICICI bank was incorporated at 1994, It does banking business of all kinds. It was
founded as an institution to provide quality banking services using state-of-the-art technology. The Bank has
established a well diversified branch network with 24 branches in 15 centres covering 12 states. The bank
set up a fully computerised environment with the State-of-the-art technology at all offices continuously
upgrading its strong systems and procedures with special emphasis on risk management. Seven branches of
the bank with substantial foreign exchange business were linked to the society for worldwide Interbank
Telecommunication (SWIFT) network which enables them to transmit Letter of Credit and fund transfer
messages promptly worldwide.
In1997, The bank introduced electronic funds transfer facility. The merger of SCICI with
ICICI effective from April 1, the bank has become a wholly-owned subsidiary of ICICI. ICICI Banking
Corporation, a fully-owned subsidiary of Industrial Credit & Investment Corp of India Ltd, has finalised an
offer for sale of 4 crore equity shares of Rs.10 each at a premium of Rs.30 per share, according to merchant
banking sources.
On 1998, ICICI Banking Corporation Ltd, the first bank in the country to go in for Internet
banking, is now all set to provide its account-holders with the facility of transferring funds across their
accounts on the Net. 1999 - ICICI Bank has signed an agreement to use the NCR switchmark technology for
online-networking all its ATMs, the officials said they network would come into place in September.
In 2000, ICICI Bank became the first Indian bank to list on the New York Stock Exchange
with its 5-million American depository shares issue generating a demand book 13 times its size at .2 billion.
SkyCell Communications Ltd, one of the two cellular service providers in Chennai, has launched `Sky
Banking', for which the company has tied up with ICICI Bank and HDFC Bank. The ICICI has announced
the launch of mobile banking services for its customers, using the wireless application protocol (WAP)
technology.
34
In 2009, ICICI Bank appointed N S Kannan as the Executive Director and Chief Financial
Officer on the board with effect from May 1 following the vacancy caused by the elevation of Chanda
Kochhar as Managing Director and CEO of the bank, with effect from May 1.
ICICI Bank with Singapore Airlines launched “ICICI Bank Singapore Airlines Visa Platinum
Credit Card”, the Card has exclusive privileges especially designed for the members. ICICI Bank Limited
acting through its Hong Kong Branch (ICICI Bank) signed a loan agreement with the Export-Import Bank
of China (China Exim) for USD 98 million under the Two- step Buyer Credit (Export Credit) arrangement.
ICICI Bank is the first Indian Bank to have entered into this arrangement with China Exim.
In 2010, ICICI Bank has increased deposit rates on select maturities. The bank has raised the
interest rate on deposits maturing in 270 days to less than one year by 25 basis points to 5.75 per cent for
deposits of Rs 15 lakh to Rs 1 crore. ICICI Bank increased its deposit rates in select tenures by up to 0.50%
with instant effect, signaling hardening of interest rates in the industry.
35
Company Profile:
A world of intelligent investing
Networth has been successfully providing premium financial services and information for more than a
decade. Our aim has consistently been to empower investors to take charge of their financial future & help
them grow their Networth.
Networth has always endeavored to make a difference in the financial services space. It constantly
focuses on scaling and upgrading the technology infrastructure so as to provide the best services to the
investors. We have a presence of over 300 centre’s across India.
We are...
Managed by a talented team of over 2475 professionals.
Serving nearly 100,000 clients across the country.
ISO 9001:2000 Certified Software Division.
Winner of CNBC-TV18’s Financial Advisor Awards 2008 for Best Regional Level Financial
Advisor.
Proclaimed amongst the most read research analyst (Team Networth) by Thomson Reuters
consistently over a period of time.
A Charter member of Financial Planning Standards Board of India [FPSB].
Alliance partners with PNB for online trading.
36
Corporate Agents for MetLife India Insurance Co. Ltd.
OUR GROUP COMPANIES
Networth Stock Broking Ltd. [NSBL]:
NSBL is a member of the National Stock Exchange of India Ltd (NSE) and the Bombay Stock
Exchange Ltd (BSE) in the Capital Market and Derivatives (Futures & Options) segment. NSBL has also
acquired membership of the currency derivatives segment with NSE, BSE & MCX-SX. It is Depository
participants with Central Depository Services India (CDSL) and National Securities Depository (India)
Limited (NSDL). With a client base of over 1L loyal customers, NSBL is spread across the country though
its over 300+ branches. NSBL is listed on the BSE since 1994.
Networth Wealth Solutions Ltd. [NWSL]:
NWSL is into the business of delivery of Financial Planning & Advice. It’s vision is to ‘Advice &
Execute money related solutions to/for our customers in the most Convenient & Consolidated manner, while
making sure that their experience with us is always pleasant & memorable resulting in positive advocacy’.
The product & Services include Financial Planning, Life Insurance, On-line Trading Account, Mutual
Funds, Debentures/Bonds, General Insurance, Loans and Depository Services.
Networth Commodities & Investments Limited [NCIL]:
NCIL is the commodities arm of NSBL. It is a member at the Multi Commodity Exchange of India (MCX),
National Commodity & Derivatives Exchange (NCDEX) and ICEX & is backed by solid research &
analytics in Commodities.
37
Networth Soft Tech Ltd. [NSL]:
NSL is an ISO 9001:2000 Certified Company. It is into Application Development & maintenance. Building
& Implementation of packaged software across various functions within the Financial Services Industry is at
its core. It also provides data center services which include hosting of websites, applications & related
services. It combines a unique delivery model infused by a distinct culture of customer satisfaction.
Ravisha Financial Services Pvt. Ltd. [RFSL]:
RFSL is a RBI registered NBFC engaged in financing, primarily it provides loan against securities.
Management
Name Designation
R Sankaran Chairman
Girish Dev Executive Director
Ms. Trupti Lalpuria Company Secretary & Compliance Officer
38
Ownership Pattern
Networth (Registered & Head Office) 2nd Floor, D.C.Silk Mills Compound,
Kondivita Road, Opp. J. B. Nagar Market
Andheri (East)
Mumbai - 400059
Maharashtra.
Phone Nos. : 022 – 30641600.
Hyderabad ( Champapet )
Networth, F.No:- 405, Jitta Anji Reddy
Complex,
Above More Super Market, Champapet,
39
Hyderabad - 500059, India.
Tel: +91-40-2407 6688 / 3258 6688.
INDUSTRY PROFILE
NATIONAL STOCK EXCHANGE
The National Stock Exchange of India Limited has genesis in the report of the High Powered
Study Group on Establishment of New Stock Exchanges. It recommended promotion of a National Stock
Exchange by financial institutions (FIs) to provide access to investors from all across the country on an
equal footing. Based on the recommendations, NSE was promoted by leading Financial Institutions at the
behest of the Government of India and was incorporated in November 1992 as a tax-paying company unlike
other stock exchanges in the country.
On its recognition as a stock exchange under the Securities Contracts (Regulation) Act, 1956
in April 1993, NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994.
The Capital Market (Equities) segment commenced operations in November 1994 and operations in
Derivatives segment commenced in June 2000. The following years witnessed rapid development of Indian
capital market with introduction of internet trading, Exchange traded funds (ETF), stock derivatives and the
first volatility index - IndiaVIX in April 2008, by NSE.
August 2008 saw introduction of Currency derivatives in India with the launch of Currency
40
Futures in USD INR by NSE. Interest Rate Futures was introduced for the first time in India by NSE on 31st
August 2009, exactly after one year of the launch of Currency Futures.
With this, now both the retail and institutional investors can participate in equities, equity derivatives,
currency and interest rate derivatives, giving them wide range of products to take care of their evolving
needs.
NSE Milestones:
November 1992 Incorporation
April 1993 Recognition as a stock exchange
May 1993 Formulation of business plan
June 1994 Wholesale Debt Market segment goes live
November 1994 Capital Market (Equities) segment goes live
March 1995 Establishment of Investor Grievance Cell
April 1995 Establishment of NSCCL, the first Clearing Corporation
June 1995
Introduction of centralised insurance cover for all trading
Members
July 1995 Establishment of Investor Protection Fund
41
October 1995 Became largest stock exchange in the country
April 1996 Commencement of clearing and settlement by NSCCL
April 1996 Launch of S&P CNX Nifty
June 1996 Establishment of Settlement Guarantee Fund
November 1996
Setting up of National Securities Depository Limited, first depository in India, co-promoted by NSE
November 1996 Best IT Usage award by Computer Society of India
December 1996
Commencement of trading/settlement in dematerialised securities
December 1996 Dataquest award for Top IT User
December 1996 Launch of CNX Nifty Junior
February 1997 Regional clearing facility goes live
November 1997 Best IT Usage award by Computer Society of India
May 1998
Promotion of joint venture, India Index Services & Products Limited (IISL)
May 1998 Launch of NSE's Web-site: www.nse.co.in
42
July 1998 Launch of NSE's Certification Programme in Financial Market
August 1998 CYBER CORPORATE OF THE YEAR 1998 award
February 1999 Launch of Automated Lending and Borrowing Mechanism
April 1999 CHIP Web Award by CHIP magazine
October 1999 Setting up of NSE.IT
January 2000 Launch of NSE Research Initiative
February 2000 Commencement of Internet Trading
June 2000 Commencement of Derivatives Trading (Index Futures)
September 2000 Launch of 'Zero Coupon Yield Curve'
November 2000
Launch of Broker Plaza by Dotex International, a joint venture between NSE.IT Ltd. and i-flex Solutions Ltd.
December 2000 Commencement of WAP trading
June 2001 Commencement of trading in Index Options
July 2001 Commencement of trading in Options on Individual Securities
43
November 2001 Commencement of trading in Futures on Individual Securities
December 2001 Launch of NSE VaR for Government Securities
January 2002 Launch of Exchange Traded Funds (ETFs)
May 2002
NSE wins the Wharton-Infosys Business Transformation
Award in the Organization-wide Transformation category
October 2002 Launch of NSE Government Securities Index
January 2003 Commencement of trading in Retail Debt Market
June 2003 Launch of Interest Rate Futures
August 2003 Launch of Futures & options in CNXIT Index
June 2004 Launch of STP Interoperability
August 2004 Launch of NSE’s electronic interface for listed companies
March 2005 ‘India Innovation Award’ by EMPI Business School, New Delhi
June 2005 Launch of Futures & options in BANK Nifty Index
December 2006 'Derivative Exchange of the Year', by Asia Risk magazine
44
January 2007 Launch of NSE – CNBC TV 18 media centre
March 2007 NSE, CRISIL announce launch of IndiaBondWatch.com
June 2007 NSE launches derivatives on Nifty Junior & CNX 100
October 2007 NSE launches derivatives on Nifty Midcap 50
January 2008
Introduction of Mini Nifty derivative contracts on 1st January 2008
March 2008
Introduction of long term option contracts on S&P CNX Nifty Index
April 2008 Launch of India VIX
April 2008 Launch of Securities Lending & Borrowing Scheme
August 2008 Launch of Currency Derivatives
August 2009 Launch of Interest Rate Futures
November 2009 Launch of Mutual Fund Service System
December 2009 Commencement of settlement of corporate bonds
February 2010 Launch of Currency Futures on additional currency pairs
45
October 2010 Launch of 15-minute special pre-open trading session, a mechanism under which investors can bid for stocks before the market opens.
NSE Nifty:
The S&P CNX Nifty (nicknamed Nifty 50 or simply Nifty), is the leading index for large companies
on the National Stock Exchange of India. S&P CNX Nifty is a well diversified 50 stock index accounting
for 22 sectors of the economy. It is used for a variety of purposes such as benchmarking fund portfolios,
index based derivatives and index funds.
Nifty was developed by the economists Ajay Shah and Susan Thomas, then at IGIDR. Later on, it came to
be owned and managed by India Index Services and Products Ltd. (IISL), which is a joint venture between
NSE and CRISIL. IISL is India's first specialized company focused upon the index as a core product. IISL
have a consulting and licensing agreement with Standard & Poor's (S&P), who are world leaders in index
services.
CNX stands for CRISIL NSE Indices. CNX ensures common branding of indices, to reflect the identities of
both the promoters, i.e. NSE and CRISIL. Thus, 'C' stands for CRISIL, 'N' stands for NSE and X stands for
Exchange or Index. The S&P prefix belongs to the US-based Standard & Poor's Financial Information
Services.
NSE other indices:
S&P CNX Nifty
46
CNX Nifty Junior
CNX 100
S&P CNX 500
CNX Midcap
S&P CNX Defty
CNX Midcap 200
Equity Trading System in NSE
Trading System
NSE operates on the 'National Exchange for Automated Trading' (NEAT) system, a fully automated screen
based trading system, which adopts the principle of an order driven market. NSE consciously opted in
favour of an order driven system as opposed to a quote driven system. This has helped reduce jobbing
spreads not only on NSE but in other exchanges as well, thus reducing transaction costs.
Trading System - Market Types
The NEAT system has four types of market. They are:
Normal Market
All orders which are of regular lot size or multiples thereof are traded in the Normal Market. For shares that
are traded in the compulsory dematerialised mode the market lot of these shares is one. Normal market
consists of various book types wherein orders are segregated as Regular lot orders, Special Term orders,
Negotiated Trade Orders and Stop Loss orders depending on their order attributes.
Odd Lot Market
All orders whose order size is less than the regular lot size are traded in the odd-lot market. An order is
called an odd lot order if the order size is less than regular lot size. These orders do not have any special
terms attributes attached to them. In an odd-lot market, both the price and quantity of both the orders (buy
and sell) should exactly match for the trade to take place. Currently the odd lot market facility is used for the
47
Limited Physical Market as per the SEBI directives.
Auction Market
In the Auction Market, auctions are initiated by the Exchange on behalf of trading members for settlement
related reasons. There are 3 participants in this market.
Initiator - the party who initiates the auction process is called an initiator
Competitor - the party who enters orders on the same side as of the initiator
Solicitor - the party who enters orders on the opposite side as of the init
Spot Market
Spot orders are similar to the normal market orders except that spot orders have different settlement periods
vis-à-vis normal market. These orders do not have any special terms attributes attached to them. Currently
the Spot Market is not in use.
Trading System - Order Matching Rules
The best buy order is matched with the best sell order. An order may match partially with another order
resulting in multiple trades. For order matching, the best buy order is the one with the highest price and the
best sell order is the one with the lowest price. This is because the system views all buy orders available
from the point of view of a seller and all sell orders from the point of view of the buyers in the market. So,
of all buy orders available in the market at any point of time, a seller would obviously like to sell at the
highest possible buy price that is offered. Hence, the best buy order is the order with the highest price and
the best sell order is the order with the lowest price.
Members can proactively enter orders in the system, which will be displayed in the system till the full
quantity is matched by one or more of counter-orders and result into trade(s) or is cancelled by the member.
Alternatively, members may be reactive and put in orders that match with existing orders in the system.
Orders lying unmatched in the system are 'passive' orders and orders that come in to match the existing
orders are called 'active' orders. Orders are always matched at the passive order price. This ensures that the
earlier orders get priority over the orders that come in later.
48
Market Timings
Trading on the equities segment takes place on all days of the week (except Saturdays and Sundays and
holidays declared by the Exchange in advance). The market timings of the equities segment are:
Normal Market Open : 09:00 hours
Normal Market Close : 15:30 hours
The Closing Session is held between 15.50 hours and 16.00 hours
Limited Physical Market Open : 09:00 hours
Limited Physical Market Close : 15:30 hours
BOMBAY STOCK EXCHANGE
History:
An informal group of 22 stockbrokers began trading under a banyan tree opposite the Town Hall of
Bombay from the mid-1850s, 1875, was formally organized as the Bombay Stock Exchange (BSE).In
January 1899, the stock exchange moved into the Brokers’ Hall after it was inaugurated by James M
MacLean. After the First World War, the BSE was shifted to an old building near the Town Hall. In 1956,
the Government of India recognized the Bombay Stock Exchange as the first stock exchange in the country
under the Securities Contracts (Regulation) Act.1995, when it was replaced by an electronic (eTrading)
system named BOLT, or the BSE Online Trading system. In 2005, the status of the exchange changed from
an Association of Persons (AoP) to a full fledged corporation under the BSE (Corporatization and
Demutualization) Scheme, 2005 (and its name was changed to The Bombay Stock Exchange Limited).
49
Bombay Stock Exchange is the oldest stock exchange in Asia with a rich heritage of over 133 years
of existence. What is now popularly known as BSE was established as "The Native Share & Stock Brokers'
Association" in 1875.
BSE is the first stock exchange in the country which obtained permanent recognition (in 1956) from
the Government of India under the Securities Contracts (Regulation) Act (SCRA) 1956. BSE's pivotal and
pre-eminent role in the development of the Indian capital market is widely recognised. It migrated from the
open out-cry system to an online screen-based order driven trading system in 1995. Earlier an Association
Of Persons (AOP), BSE is now a corporatised and demutualised entity incorporated under the provisions of
the Companies Act, 1956, pursuant to the BSE (Corporatisation and Demutualisation) Scheme, 2005
notified by the Securities and Exchange Board of India (SEBI). With demutualisation, BSE has two of
world's prominent exchanges, Deutsche Börse and Singapore Exchange, as its strategic partners.
Over the past 133 years, BSE has facilitated the growth of the Indian corporate sector by providing it
with cost and time efficient access to resources. There is perhaps no major corporate in India which has not
sourced BSE's services in raising resources from the capital market.
Today, BSE is the world's number 1 exchange in terms of the number of listed companies and the world's
5th in handling of transactions through its electronic trading system. The companies listed on BSE
command a total market capitalization of USD Trillion 1.06 as of July, 2009. BSE reaches to over 400
cities and town nation-wide and has around 4,937 listed companies, with over 7745 scrips being traded as
on 31st July 09.
BSESENSEX
The BSE Index, SENSEX, is India's first and most popular stock market benchmark index. Sensex is
tracked worldwide. It constitutes 30 stocks representing 12 major sectors. The SENSEX is constructed on a
'free-float' methodology, and is sensitive to market movements and market realities. Apart from the
SENSEX, BSE offers 23 indices, including 13 sectoral indices. It has entered into an index cooperation
50
agreement with Deutsche Börse and Singapore Stock Exchange. These agreements have made SENSEX and
other BSE indices available to investors across the globe. Moreover, Barclays Global Investors (BGI), at
Hong Kong, the global leader in ETFs through its iShares® brand, has created the exchange traded fund
(ETF) called 'iShares® BSE SENSEX India Tracker' which tracks the SENSEX. The ETF enables investors
in Hong Kong to take an exposure to the Indian equity market.
The exchange traded funds (ETF) on SENSEX, called "SPIcE" and Kotak SENSEX ETF are listed
on BSE. They bring to the investors a trading tool that can be easily used for the purposes of investment,
trading, hedging and arbitrage. These ETFs allow small investors to take a long-term view of the market.
BSE provides an efficient and transparent market for trading in equity, debt instruments and
derivatives. It has always been at par with the international standards. The systems and processes are
designed to safeguard market integrity and enhance transparency in operations. BSE is the first exchange in
India and the second in the world to obtain an ISO 9001:2000 certification. It is also the first exchange in
the country and second in the world to receive Information Security Management System Standard BS
7799-2-2002 certification for its BSE On-line Trading System (BOLT).
BSE continues to innovate. In 2006, it became the first national level stock exchange to launch its
website in Gujarati and Hindi and now Marathi to reach out to a larger number of investors. It has
successfully launched a reporting platform for corporate bonds in India christened the ICDM or Indian
Corporate Debt Market and a unique ticker-cum-screen aptly named 'BSE Broadcast' which enables
information dissemination to the common man on the street.
In 2006, BSE launched the Directors Database and ICERS (Indian Corporate Electronic Reporting System)
to facilitate information flow and increase transparency in the Indian capital market. While the Directors
Database provides a single-point access to information on the boards of directors of listed companies, the
ICERS facilitates the corporates in sharing with BSE their corporate announcements.
BSE also has a wide range of services to empower investors and facilitate smooth transactions:
Investor Services: The Department of Investor Services redresses grievances of investors. BSE was the first
exchange in the country to provide an amount of Rs.1 million towards the investor protection fund; it is an
amount higher than that of any exchange in the country. BSE launched a nationwide investor awareness 51
programme- 'Safe Investing in the Stock Market' under which 264 programmes were held in more than 200
cities.
The BSE On-line Trading (BOLT): BSE On-line Trading (BOLT) facilitates on-line screen based trading in
securities. BOLT is currently operating in 25,000 Trader Workstations located across over 359 cities in
India.
Equity shares
Shares or stock options in a company entitles the buyer the ownership rights in a company. As a unit of
ownership the stock/share holder gets a voting right in the company. The total of these shares is what
contributes to the capital of the company.
Equity shares is the equally divided capital of a company. Total capital contribution for a company
comprises of investments through equity share holdings by small and big investors. The investors who have
a stake in a company are referred to as shareholders. The equity shares are therefore documents issued by a
company and floated in the open market for purchase by shareholders which entitles them to be one of the
owners of the company.
The profits of equity shareholders depend on the profit making capability of the company that they have
invested in. In a situation where the company has made huge profits the benefits are passed over to the
equity share holders by way of dividends. The equity shareholders also enjoy voting rights in the company
By investing in shares, investors basically buy the ownership right to the company. When the company
makes profits, shareholders receive their share of the profits in the form of dividends. In addition, when
company performs well and the future expectation from the company is very high, the price of the
company’s shares goes up in the market. This allows shareholders to sell shares at a profit, leading to capital
gains.
Investors can invest in shares either through primary market offerings or in the secondary market.52
The primary market has shown abnormal returns to investors who subscribed for the public issue and were
allotted shares.
Stock Exchange:
In a stock exchange a person who wishes to sell his security is called a seller, and a person who is willing to
buy the particular stock is called as the buyer. The rate of stock depends on the simple law of demand and
supply. If the demand of shares of company x is greater than its supply then its price of its security
increases.
In Online Exchange the trading is done on a computer network. The sellers and buyers log on to the network
and propose their bids. The system is designed in such ways that at any given instance, the buyers/sellers are
bidding at the best prices.
The transaction cycle for purchasing and selling shares online is depicted below:
53
Client
Member/ Broking firm.
Stock Exchange
(BSE / NSE)
Member/
Broking firm.Client
Transaction Cycle
54
ANALYSIS
INFOSYSTCH
Day wise April and May Month Data
Data for INFOSYSTCH - EQ from 01-04-2011 to 31-05-2011
Date Prev Close Open Price
High Price
Low Price
Last Price
Close Price Average
01-Apr-11 3241.3 3235.1 3256.25 3208 3219.1 3218.15 3225.2404-Apr-11 3218.15 3225 3296 3221 3274 3283.15 3274.2505-Apr-11 3283.15 3276.95 3293 3231.1 3280 3283.25 3260.5306-Apr-11 3283.25 3279 3299 3252.05 3275.4 3275.15 3278.0207-Apr-11 3275.15 3261.9 3261.9 3237.7 3244.05 3245.9 3249.1708-Apr-11 3245.9 3242 3264.65 3207.45 3226 3227.3 3228.9211-Apr-11 3227.3 3195.3 3261.8 3181 3236.85 3241.6 3239.213-Apr-11 3241.6 3211 3317.1 3196 3305.05 3306.2 3272.0115-Apr-11 3306.2 3296.15 3298.6 2977.5 2980.7 2989.5 3058.218-Apr-11 2989.5 2919 2967 2880 2903 2906.1 2927.6319-Apr-11 2906.1 2906 2927 2881 2884.95 2887.35 2903.2320-Apr-11 2887.35 2919 2927.9 2891 2903 2907.3 2909.521-Apr-11 2907.3 2918.7 2940.5 2901.1 2903 2910 2919.7125-Apr-11 2910 2915 2963.95 2907.4 2940 2941.3 2945.0126-Apr-11 2941.3 2935 2954.95 2920 2937.6 2942.35 2938.04
55
27-Apr-11 2942.35 2945 2964.65 2942.5 2952.25 2953.15 2954.3828-Apr-11 2953.15 2949 2958 2921 2922.25 2929.15 2935.129-Apr-11 2929.15 2910 2929 2887.95 2900 2906.25 2908.9
02-May-11 2906.25 2919.05 2944 2910 2923 2922.55 2924.6103-May-11 2922.55 2920 2957.15 2899.95 2900 2911.05 2938.4904-May-11 2911.05 2901 2905 2842.75 2866.25 2869.75 2868.2705-May-11 2869.75 2867.3 2878.9 2837 2840 2848.5 2858.3206-May-11 2848.5 2857.9 2910 2848 2882.45 2893 2875.509-May-11 2893 2910 2917 2867.5 2910 2908.55 2894.9810-May-11 2908.55 2907.7 2924.9 2872 2875.65 2880.05 2898.2211-May-11 2880.05 2882 2924 2879.95 2905 2906.05 2908.5412-May-11 2906.05 2897.9 2909 2872 2884 2881.25 2889.5913-May-11 2881.25 2883.2 2912 2871.25 2885 2878.35 2891.3416-May-11 2878.35 2876 2876 2842.35 2850 2850.4 2853.9417-May-11 2850.4 2848.4 2877.3 2823.95 2847 2844.15 2853.818-May-11 2844.15 2850 2882.35 2803 2845.1 2842.5 2850.5919-May-11 2842.5 2859.7 2859.7 2835.6 2846.05 2846.45 2848.5620-May-11 2846.45 2845 2863.7 2832.15 2846 2849.85 2845.7423-May-11 2849.85 2847.85 2852.8 2827.85 2840 2837.05 2837.5724-May-11 2837.05 2833 2863.85 2833 2849 2844.5 2849.725-May-11 2844.5 2827.7 2827.7 2756.6 2794 2788.65 2785.9726-May-11 2788.65 2794 2797.75 2758 2779.6 2776.55 2775.5927-May-11 2776.55 2760 2807 2760 2788 2787.5 2788.2230-May-11 2787.5 2806.1 2806.1 2761 2781.05 2780.6 2776.3231-May-11 2780.6 2793 2818 2776.55 2792.25 2785.65 2791.66
56
TCS
Day wise April and May Month Data
Data for TCS - EQ from 01-04-2011 to 31-05-2011
Date Prev Close
Open Price
High Price
Low Price
Last Price
Close Price Average
01-Apr-11 1183.9 1185 1198.75 1172.55 1181.9 1180.15 1181.9304-Apr-11 1180.15 1185 1216 1184 1215 1213.2 1200.3505-Apr-11 1213.2 1215.05 1243.95 1203.75 1238 1239.85 1221.7406-Apr-11 1239.85 1239 1246.95 1214.15 1214.15 1221.85 1229.0507-Apr-11 1221.85 1220 1220 1195.15 1198.75 1199.2 1202.4508-Apr-11 1199.2 1196.9 1214 1184.75 1193.2 1196 1194.81
57
11-Apr-11 1196 1180.15 1195 1175.3 1178.7 1178.4 1184.1113-Apr-11 1178.4 1175 1221.4 1174.3 1203.6 1210.1 1205.9815-Apr-11 1210.1 1216.9 1219.9 1180 1190 1191.4 1196.5118-Apr-11 1191.4 1198 1212.5 1140.05 1148.55 1144.6 1166.7119-Apr-11 1144.6 1144.6 1169.4 1140 1165 1164.7 1155.220-Apr-11 1164.7 1179.8 1224 1179.55 1221.75 1218.7 1206.421-Apr-11 1218.7 1241 1245.8 1170.85 1185.15 1192.1 1210.1325-Apr-11 1192.1 1197 1204 1172.65 1194 1197.85 1191.8226-Apr-11 1197.85 1200 1202 1180.35 1187 1189 1188.4327-Apr-11 1189 1194.95 1194.95 1176.05 1178 1180.6 1184.1628-Apr-11 1180.6 1180.15 1183.5 1155.6 1160.2 1158.65 1165.8129-Apr-11 1158.65 1172 1172 1150.25 1162.6 1165.65 1161.34
02-May-11 1165.65 1170 1177.5 1152.5 1156 1158.45 1162.2303-May-11 1158.45 1162 1162 1131 1135.45 1138.45 1147.0804-May-11 1138.45 1146 1146 1115.15 1137.35 1137.05 1126.7605-May-11 1137.05 1145 1145 1108.1 1111.3 1115 1122.6806-May-11 1115 1120 1153.5 1119.75 1145 1148.95 1136.0309-May-11 1148.95 1150 1151.95 1124.5 1133 1135.55 1134.8910-May-11 1135.55 1133 1159.95 1128 1139.5 1139.9 114611-May-11 1139.9 1139 1151.7 1126.1 1140 1140.25 1140.6412-May-11 1140.25 1133.9 1133.9 1108.35 1113.95 1111.75 1118.6213-May-11 1111.75 1112 1142.3 1112 1134 1127.1 1127.0816-May-11 1127.1 1121 1147.4 1120 1127.55 1131.1 1134.9517-May-11 1131.1 1122.05 1149.2 1122.05 1139.3 1141.7 1141.618-May-11 1141.7 1142.25 1161.5 1142.25 1157.5 1155.05 1155.1319-May-11 1155.05 1165 1170 1156 1165.25 1164.85 1164.6120-May-11 1164.85 1173.75 1183.4 1163.25 1173.9 1175 1175.0723-May-11 1175 1164 1170.5 1150 1165 1166.55 1161.7224-May-11 1166.55 1162.65 1172.8 1139.15 1149.1 1149.9 1154.3325-May-11 1149.9 1149.1 1149.9 1120 1128.5 1128.6 1129.5826-May-11 1128.6 1139 1143 1120 1135 1135.75 1132.5827-May-11 1135.75 1148.55 1149.9 1136.3 1141.5 1144.55 1144.730-May-11 1144.55 1151 1159.95 1142.3 1158.15 1151.95 1150.831-May-11 1151.95 1155 1177.7 1150.1 1157 1157.15 1164.19
58
WIPRO
Day wise April and May Month Data
Data for WIPRO - EQ from 01-04-2011 to 31-05-2011
Date Prev Close
Open Price
High Price
Low Price
Last Price
Close Price Average
01-Apr-11 480.2 477 479.6 470 475.05 476.05 473.3904-Apr-11 476.05 480 490 479.25 481 481 482.6205-Apr-11 481 482.3 485 472.05 481.35 481 477.1406-Apr-11 481 479.6 483.35 461.5 464.95 465.95 470.1207-Apr-11 465.95 464.95 473.75 458.65 473 472.45 467.2408-Apr-11 472.45 470.85 472 460.1 465 465.55 464.22
59
11-Apr-11 465.55 465 465 456.55 460.25 460 459.913-Apr-11 460 455 474.5 455 472.45 472.4 466.915-Apr-11 472.4 468 472 448 448.5 449.8 452.9118-Apr-11 449.8 450.1 455 444 445 445.4 449.0319-Apr-11 445.4 444 451.8 439.5 451 449.55 445.7320-Apr-11 449.55 452 465.8 452 461.25 463.65 459.1921-Apr-11 463.65 462.55 471.7 460.1 463.05 463.15 468.5825-Apr-11 463.15 464 468.4 460.65 467.05 466.2 464.2526-Apr-11 466.2 465 467.8 454.05 464.4 464.7 460.7627-Apr-11 464.7 448.8 454.7 444.4 450.15 451.1 449.7228-Apr-11 451.1 454 454.8 445 447 446.6 447.929-Apr-11 446.6 446 451.65 444.15 450 450.3 449.19
02-May-11 450.3 450 453.9 443 446 447.6 446.8903-May-11 447.6 445 449.9 433 433.8 436.65 442.6504-May-11 436.65 438.35 440.8 428 435.45 437 434.0505-May-11 437 436 438.7 428 436 432.5 432.6206-May-11 432.5 437 452.9 435.2 440.65 442.45 441.7509-May-11 442.45 440.55 442.5 435.2 436.5 436.15 437.6310-May-11 436.15 435.1 442.45 432.2 436.45 436.3 437.4711-May-11 436.3 439.9 442.9 435.25 436 439.15 439.7812-May-11 439.15 434.15 439.8 431.6 431.6 433.3 435.5613-May-11 433.3 433 445.2 432.5 443 442.55 442.2916-May-11 442.55 444.7 444.7 435.15 440 439.95 439.0117-May-11 439.95 437.2 443.7 434.3 438 437.5 436.7218-May-11 437.5 438 450 438 445 446.15 447.0719-May-11 446.15 448.6 448.6 440.2 444 442.8 443.1720-May-11 442.8 446.8 448.85 440.5 448.5 447.35 445.9623-May-11 447.35 440 442 435 440.25 440.05 439.0424-May-11 440.05 438.55 444.95 438.55 439.5 439.9 440.9825-May-11 439.9 442 442 430.55 436 435.6 435.7926-May-11 435.6 437.1 439.85 432.75 434 434.9 435.6627-May-11 434.9 433.1 444.7 433.1 442.7 442.05 440.0230-May-11 442.05 441.55 446.65 439.65 441.45 441.8 443.9831-May-11 441.8 440.4 450.5 440.4 447 446.4 447.73
60
INTERPRETATIONS
INFORMATION TECHNOLOGY SECTOR
Weekly wise data of April - 2011 Month
WEEKS INFOSYS %Change TCS %Change WIPRO %Change
1st week 1st Apr 3218 0 1180 0 476 0
2nd week 07th Apr 3246 0.87 1199 1.6 473 -0.63
3rd week 18th Apr 2906 -10.5 1145 -4.5 445 -5.92
4th week 26th Apr 2942 1.2 1189 3.84 465 4.49
TOTAL AVG -8.43 0.94 -2.06
61
Here you can see in the month of April all are in decreasing stage in 3rd week and 4th week is in all are high.. So there is fluctuating in the prices. when we compare all of them TCS showed a good amount of percentage change then comes WIPRO and INFOSYS.
Weekly wise data of May-2011 month
WEEKS INFOSYS %Change TCS %Change WIPRO %Change
1st week 3rd May 2911 -1.05 1139 -4.21 437 -6.02
2nd week 10th May 2880 -1.06 1140 0.09 436 -0.23
3rd week 17th May 2844 -1.25 1142 0.18 438 0.46
4th week 24th May 2844 0 1150 0.7 440 0.46
5th week 31st May 2786 -2.04 1157 0.61 446 1.36
TOTAL AVG -5.4 -2.63 -3.97
62
In the next month you can see all the companies are in negative. Among them TCS is better than WIPRO and INFOSYS and with a grate variation to certain extent. This month all companies are not in good percentage.
AXIS Bank
Day wise April and May Month Data
Data for AXIS - EQ from 01-04-2011 to 31-05-2011
Date Prev Close
Open Price
High Price
Low Price
Last Price
Close Price Average
01-Apr-11 1403.85 1410.3 1417 1378.6 1411 1407.75 1396.7504-Apr-11 1407.75 1411.1 1441.9 1407 1434 1432.1 1428.1305-Apr-11 1432.1 1448 1448 1409.1 1419.05 1424.75 1423.0906-Apr-11 1424.75 1420 1441.7 1415 1432 1428.95 1428.2607-Apr-11 1428.95 1430 1458 1416.7 1447.45 1445.75 1441.8108-Apr-11 1445.75 1446 1460.45 1435.25 1457.5 1449.7 1447.4211-Apr-11 1449.7 1437.2 1439.9 1403.95 1406.05 1409.85 1416.97
63
13-Apr-11 1409.85 1395 1445.9 1394.35 1444.9 1438.3 1425.3215-Apr-11 1438.3 1426.05 1457.9 1421.6 1428.25 1429.9 1435.5318-Apr-11 1429.9 1430 1450 1384.4 1390.55 1389.8 1411.0119-Apr-11 1389.8 1384 1416.8 1382.2 1409.5 1409.35 1402.7720-Apr-11 1409.35 1422 1452.8 1415 1451.5 1448 1433.1521-Apr-11 1448 1449 1457.8 1438.65 1449 1447.55 1447.8525-Apr-11 1447.55 1398 1408.5 1371 1377.6 1377.3 1387.2826-Apr-11 1377.3 1387.8 1387.8 1338.65 1352.6 1356.35 1354.4427-Apr-11 1356.35 1371.2 1372 1333 1344.05 1343.85 1345.5228-Apr-11 1343.85 1354.9 1354.9 1324.1 1341.5 1333.7 1339.3229-Apr-11 1333.7 1338 1342.8 1270.3 1287.05 1286.6 1297.13
02-May-11 1286.6 1297.9 1298 1260.1 1273.8 1276.45 1276.4903-May-11 1276.45 1273.7 1295.5 1210.55 1236.5 1230.4 1246.7804-May-11 1230.4 1229.5 1249 1215 1235 1235.6 1232.8905-May-11 1235.6 1239.9 1249 1202.65 1206 1209.85 1222.2906-May-11 1209.85 1212 1264.9 1212 1257.2 1258.2 1244.3609-May-11 1258.2 1260.1 1268.55 1231.25 1234.2 1237.75 1242.5110-May-11 1237.75 1239.95 1242.5 1218 1228.35 1228.7 1230.3711-May-11 1228.7 1225 1244.75 1224 1230 1228.25 1233.5212-May-11 1228.25 1223 1239.85 1201 1209.1 1205.65 1218.0313-May-11 1205.65 1210.5 1259.8 1208.65 1246.8 1244.7 1241.8216-May-11 1244.7 1241.6 1241.6 1218.2 1223.9 1224.4 1225.9117-May-11 1224.4 1226.1 1241.5 1206.55 1219 1219.4 1221.4418-May-11 1219.4 1223 1232 1202.2 1218.45 1217.95 1215.6519-May-11 1217.95 1230 1230 1207.15 1215.05 1214.65 1215.2720-May-11 1214.65 1224 1231.5 1208 1220.05 1220.9 1221.3223-May-11 1220.9 1215 1218.05 1183 1183 1188 1194.1324-May-11 1188 1195 1215 1186.5 1204.1 1202.4 1201.6925-May-11 1202.4 1203.9 1203.9 1175 1183.85 1181.65 1183.7726-May-11 1181.65 1194.5 1212 1184.5 1209.5 1208.4 1197.5327-May-11 1208.4 1214.95 1228 1206.25 1218.7 1220.6 1218.4730-May-11 1220.6 1224 1248 1224 1245.65 1245.25 123931-May-11 1245.25 1251.9 1289 1251 1280 1282.5 1271.38
64
HDFC Bank
Day wise April and May Month Data
Data for HDFC - EQ from 01-04-2011 to 31-05-2011
Date Prev Close
Open Price
High Price
Low Price
Last Price
Close Price Average
01-Apr-11 701.2 699 710.35 696.05 708.5 708.2 705.5604-Apr-11 708.2 713.75 713.75 697.55 705.4 705.55 702.7305-Apr-11 705.55 703 711 693.3 698.5 698.35 699.1806-Apr-11 698.35 700.75 706.65 693.55 699.35 698.9 699.68
65
07-Apr-11 698.9 696.05 719.9 696.05 715.95 715.7 712.3508-Apr-11 715.7 716.1 722.5 706.7 711.6 710.65 713.1611-Apr-11 710.65 698.3 706.35 688.3 690 690.15 694.2613-Apr-11 690.15 686.15 721.8 684 721.2 718 708.3315-Apr-11 718 715.3 723.25 702.65 703.9 706.7 715.7718-Apr-11 706.7 709.9 718.35 689.05 693.5 692.1 701.419-Apr-11 692.1 688.3 699.85 686.95 691.4 694.6 693.1320-Apr-11 694.6 701.7 716.65 695 715 715 706.2821-Apr-11 715 717.4 733.85 717.4 733 732.2 728.5225-Apr-11 732.2 732 737.9 727.55 729 731.05 733.626-Apr-11 731.05 731 733 709.1 723.45 722.85 717.4627-Apr-11 722.85 721.5 726 716.2 720 722.1 721.4628-Apr-11 722.1 722.1 723.1 707 719.5 717.35 714.3229-Apr-11 717.35 715 720.4 695.8 708 706.8 705.83
02-May-11 706.8 710.1 711.35 696.55 698.8 699.4 700.5803-May-11 699.4 696.1 704.8 681 683.7 684.35 692.5504-May-11 684.35 686 690.65 659 661.15 662.5 670.2205-May-11 662.5 665.95 673.5 651.65 653.5 655.05 662.3406-May-11 655.05 659.85 669.85 655 665.5 664.8 664.0609-May-11 664.8 670 670 656.6 664.4 664.55 664.5610-May-11 664.55 669.7 669.7 650.1 660.6 661.1 659.7411-May-11 661.1 665.1 668.1 656 665.5 666.1 662.3112-May-11 666.1 660 661.9 646 646.85 647.2 653.913-May-11 647.2 650 655 640.75 645.6 644.7 649.9116-May-11 644.7 646 646.2 632 634.25 634 636.1417-May-11 634 635 638.7 626.55 631.9 631.6 632.6318-May-11 631.6 634.8 647.6 634.8 645 646.05 640.1319-May-11 646.05 649.75 649.85 637.6 646.15 643.85 643.7620-May-11 643.85 649.85 663.4 640 657.85 658.85 654.6423-May-11 658.85 652.45 653.15 640.05 644.2 646.55 647.7924-May-11 646.55 651.7 659.85 645.05 650.4 649.4 652.525-May-11 649.4 650 656.5 641.1 644 644.25 648.5226-May-11 644.25 645.2 649.9 635 642.5 643.15 642.5727-May-11 643.15 640.5 658.4 640.5 656.6 656.3 653.0830-May-11 656.3 658 671.5 658 667.3 668.55 666.1531-May-11 668.55 669.8 688.8 669.8 684.75 684.05 680.72
66
ICICI Bank
Day wise April and May Month Data
Data for ICICI - EQ from 01-04-2011 to 31-05-2011
Date Prev Close
Open Price
High Price
Low Price
Last Price
Close Price Average
01-Apr-11 1116.2 1114.8 1119 1095 1102.6 1102.9 1103.1404-Apr-11 1102.9 1105.25 1126.95 1105.25 1119.05 1119.2 1118.0105-Apr-11 1119.2 1124.75 1127.9 1104.1 1107 1111.25 1112.8406-Apr-11 1111.25 1108.8 1119.5 1096 1097 1100.5 1106.68
67
07-Apr-11 1100.5 1100 1114.4 1093.7 1101.4 1104 1104.4408-Apr-11 1104 1104.5 1118.9 1091.35 1097.95 1098.3 1103.0811-Apr-11 1098.3 1085 1108.4 1085 1098 1100.6 1099.6913-Apr-11 1100.6 1093.8 1130 1086.2 1126 1126.85 1116.1815-Apr-11 1126.85 1119.95 1139 1098.25 1100.65 1101.7 1116.7218-Apr-11 1101.7 1102.1 1117.35 1081.55 1088.5 1084.1 1098.9419-Apr-11 1084.1 1084 1093.5 1072 1091.4 1090.05 1084.6920-Apr-11 1090.05 1103.7 1113.9 1095 1111 1112.35 1106.2221-Apr-11 1112.35 1121.7 1123.95 1111.5 1117.3 1118.5 1118.3725-Apr-11 1118.5 1114.5 1126.35 1109.1 1109.5 1112.65 1119.526-Apr-11 1112.65 1118.5 1125.4 1098.15 1117.05 1121.45 1111.5227-Apr-11 1121.45 1127.95 1128.5 1102 1108.95 1106.85 1113.2428-Apr-11 1106.85 1118 1127.95 1085 1112.15 1117.5 1112.2829-Apr-11 1117.5 1116 1128 1103.1 1108.8 1114.45 1119.23
02-May-11 1114.45 1113.8 1118.3 1094.4 1096.8 1098.3 1101.8903-May-11 1098.3 1096 1107.95 1056.4 1073.8 1067.8 1081.9204-May-11 1067.8 1059.75 1072 1042.8 1056.15 1057.65 1058.9105-May-11 1057.65 1057 1067.3 1021 1021.4 1030 1040.806-May-11 1030 1033 1088.7 1032.55 1079.4 1083.8 1070.9609-May-11 1083.8 1093.4 1093.4 1066.25 1082 1083 1079.4610-May-11 1083 1081 1085 1066.25 1077.6 1076.2 1077.1611-May-11 1076.2 1078 1081.7 1061 1077.15 1076.7 1071.1612-May-11 1076.7 1070 1078.95 1050 1051.2 1052.15 1063.113-May-11 1052.15 1055 1096.4 1045.3 1076.15 1073.05 1077.4616-May-11 1073.05 1063.5 1066.8 1055 1056.05 1057.75 1060.5917-May-11 1057.75 1058 1062.75 1023 1040.4 1039.75 1039.9618-May-11 1039.75 1045 1051.75 1025.05 1032.3 1032.25 1034.7719-May-11 1032.25 1044 1044 1023.75 1032.2 1030.1 1031.8320-May-11 1030.1 1038 1054.1 1025 1042.5 1043.2 1042.4823-May-11 1043.2 1036.9 1036.9 1003 1005.4 1006.9 1014.1124-May-11 1006.9 1008.1 1030.95 1008.1 1020.65 1018.8 1020.1625-May-11 1018.8 1021 1021 1003.4 1011.5 1008.75 1008.9826-May-11 1008.75 1018.6 1032 1013.9 1023 1026.25 1024.3727-May-11 1026.25 1030.25 1073.7 1030.2 1072.7 1068.15 1059.930-May-11 1068.15 1072 1083.35 1070.1 1078.95 1077.7 1077.0231-May-11 1077.7 1080.8 1094.8 1073.1 1085.1 1086.1 1087.66
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INTERPRETATIONS
BANKING SECTOR
Weekly wise data of April-2011 Month
WEEKS AXIS %Change HDFC %Change ICICI %Change
1st week 01st Apr 1408 0 708 0 1103 0
2nd week 07th Apr 1446 2.7 716 1.13 1104 0.09
3rd week 18th Apr 1390 -3.87 692 -3.35 1084 -1.81
4th week 26th Apr 1356 -2.45 723 4.48 1122 3.51
TOTAL AVG -3.62 2.26 1.79
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Here you can see that in Banking Sector HDFC Bank showed a considerable increase than ICICI and AXIS Banks. Here if we take out Average HDFC bank performed well in this month compare to any other bank were as other 2 were showing low values.
Weekly wise data of May-2011 month
WEEKS AXIS %Change HDFC %Change ICICI %Change
1st week 03rd May 1230 -9.29 684 -5.39 1068 -4.81
2nd week 10th May 1229 -0.08 661 -3.36 1076 0.75
3rd week 17th May 1219 -0.81 632 -4.39 1040 -3.35
4th week 24th May 1202 -1.39 649 2.69 1019 -2.02
5th week 31st May 1283 6.74 684 5.39 1086 6.58
TOTAL AVG -4.83 -5.06 -2.85
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In the month of May all banks are showing negative performance compare to last month. .But overall this month all the banks are not in good performance.
Overall percentage Change data of IT Sector in Two Months
MONTHS INFOSYS% TCS % WIPRO %
APRIL -8.43 0.94 -2.06
MAY -5.4 -2.63 -3.97TOTAL % -13.83 -1.69 -6.03
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If we see over all percentages in IT sector TCS showed average returns in two months. But if we see total percentage change it is showing negative performance. Not only TCS but also INFOSYS and WIPRO companies are showing negative indication in two months.
Overall Percentage Change data of Banking Sector in Two Months
MONTHS AXIS BANK % HDFC % ICICI %
JANUARY -3.62 2.26 1.79
FEBRUARY -4.83 -5.06 -2.85TOTAL % -8.45 -2.8 -1.06
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If we see over all percentages in banking sector none of them are showing positive in the month of April and May. Whereas comparing with one another ICICI Bank is better performance even though it is in negative.
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Findings:
In the month of April in IT sector TCS showed a postive sign comparing to the other IT companies like Infosys and wipro.
However, The first place taken by TCS, but it showed and average performance in percentage. where as wipro also shown as negatively but comparing to the Infosys, Wipro is better.
Because of the darstic change in third week of Infosys company, It is showing negatively.
In the month of May, All the IT companies shown as negatively including TCS. Even though comparing to all other companies TCS is better.
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where as in the month of May also Infosys shows still negative sign comparing to TCS and Wipro.
In Banking sector, In the month of April HDFC shows the postive sign when comparing to AXIS and ICICI Bank.
Even though ICICI Bank shows the postive sign, It is less than the HDFC Bank in parcentage wise.
However, AXIS Bank shows the negative sign comparing to other Banksin the month of April.
In the month of May all Banking sectors showed negative signs. This was a grate change comparing to the previous month.
In previous month HDFC Bank showed the postive sign but, In the month of May it showed the negative sign.
Comparing to the One with other Banks ICICI bank is better when comparing to the AXIS and HDFC Bank.
While in comparing overall percentage in IT sector for two months all companies shows negative signs itself.
While compare to one another TCS did a better performance than other IT Companies.
In overall percentage Change in Banking Sector for two months, All Banks are in showing negative signs.
So, To say clearly the Banking sector is showing good performance even though it is showing negative sign comparing to the IT sectors.
Suggestions:
I suggest that it is more benefit for an investor to invest in the Banking sector then the IT sector.
When it comes to IT sector it is better to invest in TCS Company than the other IT Companies. It
shows a good performance.
In banking sector it is better not invest in any Bank, If any investor want to invest in Banking sector
than I suggest them to invest in ICICI and HDFC Bank.75
As of now you can see IT and Banking sector are showing average performance. So I suggest the
Investor to Invest in banking sector.
CONCLUSIONS
1. In the Equity analysis of Banking and IT stocks – A comparative study we conclude both sectors have not
given good Returns. In the recent years advances in financial markets and technology have made derivate comparitive
easy for the investors.76
2. Equity market in India is growing rapidly. Trading in equities require more than average understanding of finance.
Being now markets. Maximum number of investors have not yet understood the full implications of the trading in
Capital market. SEBI should take actions to create awareness in investors about the Capital market.
3. Introduction of equity market implies better risk management. These markets can greater depth, stability and
liquidity to India capital markets. Successful investor will always looks after the Equity returns and at the same time
he looks after the risk too.
4. In order to increase the Equity market in India SEBI should revise some of their regulation like aware of Normal
People, participations in markets.
5. Equity Analysis is just like a observing the market and Awareness of the Equity product.
BIBILIOGRAPHY
WWW.NSEINDIA.COM
WWW.BSEINDIA.COM
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WWW.NETWORTHDIRECT.COM
WWW.SEBI.ORG.IN
WWW.MONEYCONTROL.COM
BOOKS
1. INVESTMENT ANALYSIS AND PORTFOLIO MANAGEMENT. .
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