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A STUDY OF EQUITY ON CAPITAL MARKETS

EXECUTIVE SUMMARY
Indian stock market is growing at a faster rate. This growth has attracted many investors to invest in stock market. With the growth the stock market also showed high rate of risk. Risk is the major factor influencing the investors return. It is necessary to manage the risk to achieve a balanced return. Ups and downs, bullish and bearish phases are in integral part of share markets with out this feature share markets will be with out life and charm. Slow and steady behavior of the market is often a wishful thing. Movement will be up and down in a big way. It is a difficult task to value shares at any movement for decision making for purchase or sale of shares. This calls for study of various analyses of Nemours factors relating to individual company and relative performance of the market and on the other verity of factors relating to the individual company and relative performance of the market and on the other verity of factors on the national economic developments. Globalization means inflows and outflow of investment funds causing instability to the share market, if there funds are sustain, even political factor influence share prices, this this callas for a tremendous amount of research work, analysis if data, besides careful deterrents on current developments, Going in for shares for relatively large companies, established by companies with excellent managerial reputation, and investing in projects in existing as well as new companies, is the safe policy.

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A STUDY OF EQUITY ON CAPITAL MARKETS

INTRODUCTION

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INDIAN FINANCIAL SYSTEM


The financial system or financial sector of any country consists of specialized and nonspecialized financial institutions, organized and unorganized financial markets, and financial instruments and services, which facilitate transfer of funds. The word system in the term financial system implies a set of complex and closely connected or intermixed institution, agents, practices, markets, transactions, claims, and liabilities in the economy. The financial system is concerned about money, credit, and finance-the terms intimately related yet somewhat different from each other. Savings mobilization and promotion of investment arc functions of the stock and capital Markets, which are a part of the organized financial system in India. The objective of all Economic activity is to promote the well being and standard of living of the people, This Depends on the income and distribution of income in terms of real goods and services in the economy. The financial inputs emanate from the financial system, while real goods and services part of the real system. The interaction between the real system (goods and services) and The financial system (money and capital) is necessary for the productive process. Trading in money and monetary assets constitute the activity in the financial markets and are referred to as the financial system. The term "liquidity" is used to refer to cash, money and nearness to cash. Money and monetary assets are traded in the financial system. Thus, provision of liquidity and trading in liquidity are the major functions of the financial system. While cash creation is the function of the RBI, banks do credit creation and financial institutions including the RBI, banks and term-leading institutions, deal in claims on money or monetary assets. These institutions are all a part of the financial system. The financial system is also geared to the mobilization of savings and canalization of these savings into productive activity. Through appropriate differentials in the rate of return and other incentives, funds flow from less productive to more productive activities. The efficient functioning of the financial system facilitates these flows of funds.

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The financial system provides the intermediation between investors and helps the process of specialization and sophistication in the financial infrastructure, leading to greater financial development that is pre-requisite for faster economic development. The real test of development of financial system is its efficiency in operations and functional roles. The operational efficiency is reflected in the costs of intermediation, quality of service and its width. The improved operational efficiency during the nineties is seen from significant reforms in the capital market and stock markets, lowering of costs of credit and greater flow of bank credit into these markets, lowering of costs raising funds from the capital market through the route of book building and private placement. The strengthening of the institutions evidences the Width of Services Structure and increasing the instruments of mobilizing funds, introduction of technological innovations in the Stock and Capital markets and in the banking system, deregulation, privatization and globalization of markets and freer flow of funds into and outside country, etc.

FINANCIAL SYSTEM LEADS TO ECONOMIC DEVELOPMENT:


The economic development of a country depends inter alia, on its financial structure in the long run, the larger the proportion of financial assets to real assets, the greater the scope for economic growth. A sound and efficient financial system can contribute to economic growth and development in number of ways: By providing a spectrum of financial assets to meet diverse preference of household and thus enabling them to choose their assets portfolio to achieve a preferred mix of return, liquidity and risk. By raising productivity of capital through efficient allocation.

In the post independence period, the Indian financial system has augmented well significantly and has demonstrated considerable ability to mobilize saving and meeting the needs of agriculture, industry and trade. The process of economic development will make continued demands on the banking system. The banking system had to be integrated with the process of economic development. Both in terms of mobilizing savings and utilizing them to best advantage.

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FUNCTIONS OF FINANCIAL SYSTEM:


It ensures effective allocation of resource to different investment channels; an effective financial system always enables proper allocation of resource to different investment avenues. It plays the role of a catalyst; the financial system plays the role of catalyst is creation of credit and providing finance and credit facilities o different investment opportunities. In accelerates the rate of economic development: financial system mobilize the savings and also the investment. By doing so capital formation is achieved which in turn led to allocating resource to productive which at least leads to the economic development. It is a guide for investor education: the financial system plays a very important role of providing all necessary investment opportunities to the investors. It promotes self employment: the development banks and financial institution are primarily established with the objective of promoting self employment. By providing a means of self employment top young educated men and women, it indirectly solves the problem of unemployment. It act as the mobilize of savings: the financial system mobilize and cannabises the small savings to productive activities. It is a provider of liquidity.

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Financial System
Financial Institutions Financial Markets Financial Instruments Financial Services

Primary Regulatory

Secondary

InterMediaries

Non-inter Mediaries

Others

Short Term

Medium Term

Long Term

Organized

Unorganized

Primary

Secondary

Capital Markets

Money Markets

Equity Markets

Debt Markets

Derivatives

Markets
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FINANCIAL INSTITUTIONS
Financial institution are divided in to banking and non-banking institutions, the banking institutions have quite a few things in common with the non-banking ones, but their disguising character lies in the fact that unlike other institutions, they participate in the economys payment mechanism, i.e. they provide transaction services, their deposit liabilities constitute a major part of the national money supply, and they can, as a whole create deposits or credits, which is money. The financial institutions are business organizations that act as mobilizes and depositories of savings, and as purveyors of credit or finance. They also provide various financial services to the community. They differ from non-financial business organization in respect of their wares, i.e., while the former deal in financial assets such as deposits, loan, securities, and latter deal in real assets such as machinery, equipment, stock of goods real estate, Financial institutions are classified as intermediarys and-intermediaries. As the term indicates, intermediaries intermediate between savers and investor; they lend, money as well as mobilize savings; their liabilities are towards the ultimate savers, while their assets are form the investors or borrowers. Non-intermediary institutions do the loan business but their resources are not directly obtained from savers. All banking institutions are intermediaries. Many non-banking institutions also act a intermediaries and when they do so they are known as non-banking financial intermediaries (NBFI), UTI, LIC, general insurance corporation (GIC) are some NBFI in India. Non-intermediary institutions like IDBI, industrial finance corporations (IFC), and National banks of agriculture and rural development (NABARD) have come into existence because of governmental efforts to provide assistance for specific purpose, sector and regions. The major function of financial institutions, whether short-term or long-term services provides the maximum financial convenience to the public. Specialized financial investment banking institutions are established on an ongoing process India, as integral parts of the capital market.

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FINANCIAL MARKETS:
Financial markets perform a crucial function in the financial system as facilitating organizations. Unlike financial intermediaries, they are not a source of fund but are a link and provide a forum in which supplies of fund and demanders of loan/investments can transact business directly. While loans and investment of financial intermediaries are made without the direct knowledge of suppliers of fund suppliers in the financial market know where their funds are being lent/invested. The two key financial markets are money market and the capital market.

Classification of Financial Markets


There are different ways of classifying financial markets. One way is to classify financial markets by the type of financial claim. The debt market is the financial market for fixed claims (debt instruments) and the equity market is the financial market for residual claims (equity instruments). A second way is to classify financial markets by the maturity of claims. The market for short-term financial claims is referred to as the money market and the market for long-term financial cli.1ims is called the capital market Traditionally the cut-off between short-term and long-term financial claims has been one year-though this dividing line is arbitrary, it is widely accepted. Since short-term financial claims are almost invariably debt claims, the money market is the market for short-term debt instruments. The capital market is the market for long-term debt instruments and equity instruments. A third way to classify financial markets is based on whether the claims represent new issues or outstanding issues. The market where issuers sell new claims is referred to as the primary market and the market where investors trade outstanding securities is called the secondary market A fourth way to classify financial markets is by the timing of delivery. A cash or spot market is one where the delivery occurs immediately and a forward or futures market is one where the' delivery occurs at a pre-determined time in future

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A fifth way to classify financial markets is by the nature of its organizational structure. An exchange-traded market is characterized by a centralized organization with Standardized procedures. An over-the counter market is a decentralized market with Customized procedures.

Debt Market

Nature of Claim

Equity Market

Money Market

Maturity of Claim

Capital Market
Primary Market

Seasoning of Claim

Secondary Market

Cash Market

Timing of Delivery

Spot Market

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Financial services
The term financial services in a broad senses means, moralizing and allocating services. This, it includes all activities involved in transformation of savings in it investment. The financial intermediaries in Indian can be traditionally classified in to. Capital market intermediary Money market intermediary Scope of financial services Traditional activates Modern activities

Fund based activities Non-fund based activities NEW FINANCIAL PRODUCTS AND SERVICES
Merchant banking Merchant banking includes a wide range of activates such as management of customers securities, portfolilio management, project counseling and appraisal, underwriting of shares and debentures, loan syndication. VENTURE CAPITAL A venture is the financial given to a project based on the potentialities of a innovative project. Much trust is given to new ideas or technological innovations. NEW PRODUCT IN FOREX MARKET FORWARD CONTRACTS OPTIONS FUTURES SWAPS Financial intermediaries have set up corporate advisory services branches to render services exclusively to there cooperate customers there has been a substantial increases institutionalization of saving in India, the most preferred assets of investors is the bank

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deposit followed by other debt instruments the IFS had now become much more integrated than ever

Capital market reforms in India


Indias equity market has a long history. the Bombay stock exchange, it was established in 1875. however the pricing and issue volume of corporate financial instruments used to be controlled by the controller of capital issues (CCI) until 1992. also the initial public offering (IPO) requirement used to be loose in the absence of adequate informational , legal an judicial infrastructure . In 1992 , CCI was abolished and SEBI Act empower the security and exchange board of India (SEBI), established in 1998 to become a regulatory body with an explicit mandate of protecting investors, developing the capital market and regulating the market. In the same year, SEBI published guidelines on equity issues that enabled issuers to price their primary issues freely in accordance with the market sentiment. Moreover, the national stock exchange (NSE), the first nation wide screen based trading stock exchange, was established in1994 by government owned financial institutions, the establishments of NSE has intensified competition not only among the existing stock exchange but also among brokers through encouraging new entry, thereby lowering transaction cost to a substantial degree. Since 1992 India has experienced in two major stock market booms, this indication that the capital markets have succeeded in differentiating high quality firms from low quality ones, thereby making it cheaper for the former to raises funds from the market. Given the frequent cases of malpractice and price riggings, however the government still needs to make continuous efforts to improve the capital market. The capital market reform frame work consist mainly of the following participants stock exchanges, clearing corporations, market intermediaries such as stock brokers portfolio managers and mutual funds and institutions and retail investors capital market is system of frame work which facilitates savings and investments the capital market provide a channels for the allocation of savings to investments through the capital markets companies can raise resources from the investors & investors can invest their savings in industrial, commercial activities to earn a return Indian stock markets are one of the oldest stock market in the world.

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SECURITIES AND EXCHANGE BOARD OF INDIA


In the area of capital market, the Securities and Exchange Board of India (SEBI) was set up in 1992 to protect the interests of investors in securities and to promote development and regulation of the securities market. SEBI has issued guidelines for primary markets, stipulating access to capital market to improve the quality of public issues, allotment of shares, private placement, book building, takeover of companies and venture capital In the area of secondary markets. Measures to control volatility and transparency in dealings by modifying the backend system, laying down insider regulations to protect integrity of markets, uniform settlement introduction of screen- based online trading, dematerializing shares by setting up depositor and trading in derivative securities (stock index futures). There is a sea change in the institutional and regulatory environment in the capital market area. The SEBI is a body of six members comprising the chairman, two members from amongst the officials of the ministries of the central government dealing with finance and law, two members who are professionals and have experience or special knowledge relating to securities market, and one member from the RBI.all member, are appointed by the government, who also lays down their terms of office, tenure, and conditions of service, and who can also remove any member from office under certain circumstances. The scope of operations of the SEBI is very wide: it can frame or issue rules, regulations, directives, guidelines, norms in respect of both the primary and secondary markets, intermediaries operating in these markets, and certain financial institutions. It has powers to regulate (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) depositories and participants custodians, debenture trustees, and trust deeds, FIIs, (insider trading, merchant bankers, mutual funds, portfolio managers, and investment advisers, stock brokers and sub-brokers and underwriters.

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RESEARCH DESIGN

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Research design
METHODOLOGY This study primary analytical research method is used which include questionnaire, tabulation and analysis. This is one of the most important methods. 1 Journal and articles These are good especially for up top date information. They offer a relatively concise, up to date format for research. The finance India by the Indian institute of finance was referred. 2) Books Textbooks are unlikely to be useful for including in this literature review as they are intended for teaching not for research, but they do offer a good starting point for which to find more detailed sources. a) Pandian P. offers conceptual clarity, in depth coverage of how to evaluate the funds performance by using some standard measures like Sharpe Measure, trey nor Measure and Jensen Measure. 3) Internet The fastest growing source of information is the internet. It is impossible to characterize the information available on the internet. In the study following web sites are used to get the information. www.bseindia.com www.nseindia.com www.moneycontrol.com www.equitymaster.com www.moneypore.com www.indiainfoline 4) Magazines Magazines intended for a general audience are unlikely to be in providing the sort of information we need. Specialized magazines may be more useful. Some of them are finance India and value research is very popular magazine for the mutual funds. It gives the performance of various mutual fund schemes, fund focus, looser and gainer in the market and current market scenario with respect to mutual funds.

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The benefits derived form the literature review The literature review gives the answer for the following or we can say the answer of the following question benefits derived form the literature review. a) Why these studies need to be carried out? b) How this study came to choose certain methodologies and theories to work with the study? c) How this work adds to the research already carried out? d) What contribution can the present study are accepted to make?

Statement of the problem


The investor wants to invest in various stocks with the aim of high return. They want their capital to grow with the risk. But sometime due volatility in the stock market investors loose their money , Sometimes people dont know much about the market condition, and they invest. And suffer losses, which prevent them for further also stops low savings doing persons for going to stock market. Here the study covers the how the companies stock has to pick in the stock market. The problem is that the entire citizens are not aware of stock market volatility. And difficult to analyze the industry growth with respect to particular company.

Objectives of the study


To study the fundamental analysis To study the features of investment instruments To study the trends of equity in the capital market To study the behavior of the equity market To study the perception of equity from the point of investors

SCOPE OF THE STUDY This study covers information only related to equities in secondary market. To study the growth of the equities in the month of April and May 2008. The purpose of this analysis is only to create awareness & knowledge regarding companies performance in the stock market. This study attempts to find out there future of investment in selected companies. Babasabaptilfreepptmba.com 15

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Sources of data
The various sources of data are:Primary data was colleted from questionnaire, interview schedules, and discussions with
investors.

Secondary data was colleted from academic books, publication, and business journals,
magazines and journals websites, newspapers.

Tools for data collection


Questionnaire, interview schedules were used. Questionnaire-open ended and close-ended Questionnaire was used. Interview schedule- unstructured method of interview is followed.

Analysis and interpretation


The various tools for analysis used are graphs, charts, tabular analysis, secondary data collected data is tabulated, tables are presented, and statically tools were used to present the research work. Limitations of the study The study, due to many shortcomings, is not possible to be accreted. Some of the limitations are: First and foremost because the study was limited to small project report, terms may be very limited and hence, couldnt go as deep into the problem. All the questions were not well answered by the respondents. Some confidential information could not be included. The area of survey was restricted to specific places. Lastly, the study is purely academic. Hence, conclusions from analysis of statements are not necessary comment on good or bad management.

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PROFILE OF THE COMPANY

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INDIA INFOLINE GROUP


INDIA INFOLINE GROUP
The India Infoline group, comprising the holding company, India Infoline Limited and its wholly-owned subsidiaries, straddle the entire financial services space with offerings ranging from Equity research, Equities and derivatives trading, Commodities trading, Portfolio Management Services, Mutual Funds, Life Insurance, Fixed deposits, bonds and other small savings instruments to loan products and Investment banking. India Infoline also owns and manages the websites www.indiainfoline.com and www.5paisa.com The company has a network of 596 branches spread across 345 cities and towns. It has more than 500,000 customers. VISION: Our vision is to be the most respected company in the financial services space.

THE MANAGEMENT TEAM.


Mr. Nirmal Jain :( The Chairman and Executive Director) Mr. R Venkataraman:

THE BOARD OF DIRECTORS:


Mr. Sat Pal Khattar (Non Executive Director). Mr. Nilesh Vikamsey (Independent Director). Mr. Kranti Sinha (Independent Director).

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PRODUCT PROFILE:

Products and Services


We are a one-stop financial services shop, most respected for quality of its advice, personalized service and cutting-edge technology.

EQUITIES.
India infoline provided the prospect of researched investing to its clients, which was hitherto restricted only to the institutions. Research for the retail investor did not exist prior to India infoline. India infoline leveraged technology to bring the convenience of trading to the investors location of preference (residence or office) through computerized access. India infoline made it possible for clients to view transaction costs and ledger updates in real time.

PORTFOLIO MANAGEMENT SERVICES (PMS).


Our Portfolio Management Service is a product wherein an equity investment portfolio is created to suit the investment objectives of a client. We at India infoline invest your resources into stocks from different sectors, depending on your risk-return profile. This service is particularly advisable for investors who cannot afford to give time or don't have that expertise for day-to-day management of their equity portfolio.

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RESEARCH.
Sound investment decisions depend upon reliable fundamental data and stock selection techniques. India infoline Equity Research is proud of its reputation for, and we want you to find the facts that you need. Equity investment professionals routinely use our research and models as integral tools in their work. They choose Ford Equity Research when they can clear your doubts.

COMMODITIES.
India infolines extension into commodities trading reconciles its strategic intent to emerge as a one-stop solutions financial intermediary. Its experience in securities broking has empowered it with requisite skills and technologies. The Companys commodities business provides a contra-cyclical alternative to equities broking. The Company was among the first to offer the facility of commodities trading in Indias young commodities market (the MCX commenced operations only in 2003). Average monthly turnover on the commodity exchanges increased from Rs 0.34 bn to Rs 20.02 bn. The commodities market has several products with different and non-correlated cycles. On the whole, the business is fairly insulated against cyclical gyrations in the business.

MORTGAGES:
During the year under review, India infoline acquired a 75% stake in Money tree Consultancy Services to mark its foray into the business of mortgages and other loan products distribution. The business is still in the investing phase and at the time of the acquisition was present only in the cities of Mumbai and Pune. The Company brings on board expertise in the loans business coupled with existing relationships across a number of principals in the mortgage and personal loans businesses. India infoline now has plans to roll the business out across its pan-Indian network to provide it with a truly national scale in operations.

HOME LOANS.
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Get expert advice that suits your needs Loan against residential and commercial property Expert recommendations Easy documentation Quick processing and disbursal No guarantor requirement

PERSONAL LOANS.
Freedom to choose from 4 flexible options to repay Expert recommendations Easy documentation Quick processing and disbursal No guarantor requirement

INVEST ONLINE.
India infoline has made investing in Mutual funds and primary market so effortless. All you have to do is register with us and thats all. No paperwork no queues and No registration charges.

INVEST IN MUTUAL FUNDS.


India infoline offers you a host of mutual fund choices under one roof, backed by in-depth research and advice from research house and tools configured as investor friendly.

APPLY IN IPOs .
You could also invest in Initial Public Offers (IPOs) online without going through the hassles of filling ANY application form/ paperwork.

Stay connected to the market


The trader of today, you are constantly on the move. But how do you stay connected to the market while on the move? Simple, subscribe to India Infoline's Stock Messaging Service and get Market on your Mobile! There are three products under SMS Service: Babasabaptilfreepptmba.com 21

A STUDY OF EQUITY ON CAPITAL MARKETS

Market on the move. Best of the lot. VAS (Value Added Service )

INSURANCE.
An entry into this segment helped complete the clients product basket; concurrently, it graduated the Company into a one-stop retail financial solutions provider. To ensure maximum reach to customers across India, we have employed a multi pronged approach and reach out to customers via our Network, Direct and Affiliate channels. Following the opening of the sector in 1999-2000, a number of private sector insurance service providers commenced operations aggressively and helped grow the market. The Companys entry into the insurance sector de risked the Company from a predominant dependence on broking and equity-linked revenues. The annuity based income generated from insurance intermediation result in solid core revenues across the tenure of the policy.

WEALTH MANAGEMENT SEVICES.


Imagine a financial firm with the heart and soul of a two-person organization. A worldleading wealth management company that sits down with you to understand your needs and goals. We offer you a dedicated group for giving you the most personal attention at every level.

NEWS LETTERS.
The Daily Market Strategy is your morning dose on the health of the markets. Five intra-day ideas, unless the markets are really choppy coupled with a brief on the global markets and any other cues, which could impact the market. Occasionally an investment idea from the research team and a crisp round up of the previous day's top stories. That's not all. As a subscriber to the Daily Market Strategy, you even get research reports of India Infoline research team on a priority basis.

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The India infoline Weekly Newsletter is your flashback for the week gone by. A weekly outlook coupled with the best of the web stories from India infoline and links to important investment ideas, Leader Speak and features is delivered in your inbox every Friday evening.

INDIA INFOLINE INVESTMENT SERVICES LIMITED.


Consolidated shareholdings of all the subsidiary companies engaged in loans and financing activities under one subsidiary. Recently, Orient Global, a Singapore-based investment institution invested USD 76.7 million for a 22.5% stake in India Infoline Investment Services. This will help focused expansion and capital raising in the said subsidiaries for various lending businesses like loans against securities, SME financing, distribution of retail loan products, consumer finance business and housing finance business. India Infoline Investment Services Private Limited consists of the following step-down subsidiaries. India Infoline Distribution Company Limited (distribution of retail loan products) Money line Credit Limited (consumer finance) India Infoline Housing Finance Limited (housing finance)

IIFL (Asia) PRIVATE LIMITED.


IIFL (Asia) Private Limited is wholly owned subsidiary which has been incorporated in Singapore to pursue financial sector activities in other Asian markets. Further to obtaining the necessary regulatory approvals, the company has been initially capitalized at 1 million Singapore dollars

PROFILE OF STOCK EXCHANGE IN INDIA


The origin of stock exchange in India can be traced back to the later of 19th century. After the American civil war due to the share mania of the public, the number of brokers dealing in shares increased. The brokers organized and informal association in Mumbai named The native stock and share brokers association in 1875. Increased activity in trade and commerce the First World War resulted in an increase in the stock exchange trading. Stock Exchange were established in different centers like Delhi, Chennai, Nagpur, Hyderabad and Bangalore.

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The stock exchange in Mumbai, Calcutta, Chennai, Ahmedabad, Delhi, Hyderabad were recognized by the securities and contract regulation act (SCR) in the year 1956. The Bangalore stock exchange was recognized only in 1963.

Functions of stock exchange


Provide quotations for shares/stocks for facilitating trading and marketability. Extend liquidity (conversion in to cash) to such stock, as they are easily marketable and traded. Provide an orderly regulated market for securities whose prices are determined by free markets forces of supply and demand. Promote savings and investment in the economy by attracting funds for investment in corporation shares and securities.

BOMBAY STOCK EXCHANGE


Bombay Stock Exchange Limited is the oldest stock exchange in Asia with a rich heritage. Popularly known as "BSE", it was established as "The Native Share & Stock Brokers Association" in 1875. It is the first stock exchange in the country to obtain permanent recognition in 1956 from the Government of India under the Securities Contracts (Regulation) Act, 1956. The Exchange's pivotal and pre-eminent role in the development of the Indian capital market is widely recognized and its index, SENSEX, is tracked worldwide. Earlier an Association of Persons (AOP), the Exchange is now a demutualised and corporative entity incorporated under the provisions of the Companies Act, 1956, pursuant to the BSE(Corporatisation and Demutualization) Scheme, 2005 notified by the Securities and Exchange Board of India (SEBI). With demutualization, the trading rights and ownership rights have been de-linked effectively addressing concerns regarding perceived and real conflicts of interest. The Exchange is professionally managed under the overall direction of the Board of Directors. The Board comprises eminent professionals, representatives of Trading Members and the Managing Director of the Exchange. The Board is inclusive and is designed to benefit from the participation of market intermediaries.

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In terms of organization structure, the Board formulates larger policy issues and exercises over-all control. The committees constituted by the Board are broad-based. The day-to-day operations of the Exchange are managed by the Managing Director and a management team of professionals. The Exchange has a nation-wide reach with a presence in 417 cities and towns of India. The systems and processes of the Exchange are designed to safeguard market integrity and enhance transparency in operations. During the year 2004-2005, the trading volumes on the Exchange showed robust growth. The Exchange provides an efficient and transparent market for trading in equity, debt instruments and derivatives. The BSE's On Line Trading System (BOLT) is a proprietary system of the Exchange and is BS 7799-2-2002 certified. The surveillance and clearing & settlement functions of the Exchange are ISO 9001:2000 certified.

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, which 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.

Mission:NSE's mission is setting the agenda for change in the securities markets in India. The NSE was set-up with the main objectives of:

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Establishing a nation-wide trading facility for equities, debt instruments and hybrids, Ensuring equal access to investors all over the country through an appropriate communication network, Providing a fair, efficient and transparent securities market to investors using electronic trading systems, Enabling shorter settlement cycles and book entry settlements systems, and Meeting the current international standards of securities markets.

Bangalore Stock Exchange


Bangalore Stock Exchange is currently the largest stock exchange in South India. The Council of Management consisting of members nominated by Securities and Exchange Board of India (SEBI), public representatives, elected members and Executive Director, manages the Bangalore stock exchange. The Exchange has been continuously growing since its inception in 1963. There are 595 companies listed on the exchange out of which over 300 companies are non-regional companies. As of now, more than 5000 companies belonging to listed and permitted category can be traded at the Exchange. The Exchange has about 239 members. The corporate members constitute more than 25% of the total membership of the Exchange. Bangalore Stock Exchange was the first stock exchange in South India to start electronic trading of securities in 1996. Bangalore Electronic Securities Trading (BEST) system facilitates automatic order matching facilitating in trades. When trade takes place, the automated system generates unique trade number and execution time, ensuring reliability and complete transparency in the dealing. Automated trading has resulted in a sharp growth in volumes of shares traded on the Exchange. Turnover at the Exchange has grown from Rs.4300 crores in 1996-97 to Rs.8300 crores in 1997-98, an increase of 97% With a view to support the investors in resolving their grievances, Exchange has established an Investor Services Center. The Exchange coordinates with the companies, members and investors in resolving the problems. The Center also offers counseling services.

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The Investor Services Committee comprising of Public Representatives, members, VicePresident and Executive Director oversees the functioning of the Cell and they are authorized to take appropriate steps for amicable solution of the grievances. To enable the investors at other places to have access to the services, Service Centre has been set up at Mysore, Shimoga and Davangere. Similar centers are also proposed to be opened at other leading commercial centers of Karnataka. The Exchange has also established a well equipped library and Investor Information Centre to cater to varied information needs of investors, corporate, members and others. The Centre has wide range of books, periodicals, journals, annual reports, prospectus and research publications relating to Capital Market.

OVER THE COUNTER EXCHANGE OF INDIA


The OTC Exchange of India(OTCEI)incorporated in 1990 as a section 25 companies under the provisions of the companies Act 1956 and is recognized as a stock exchange under section 4 of the securities contract regulation Act,1956. The exchange was set up to aid enterprising promoters in raising finance for new projects in a cost effective manner and to provide investors with a transparent and efficient mode of trading. Modeled along the lines of the NASDAQ market of USA, OTCEI introduced many novel concepts to the Indian capital markets such as screen-based nationwide trading, sponsorship of companies, market making and scrip less trading. The OTCEI allows listing of small and medium six companies. The first issue listed on the OTCEI was in July 1992. The minimum issued share capital required of a company that wants to be listed on OCTEI is Rs. 3 million and the maximum Rs. 250 million. Listing on OTCEI is advantageous to companies because of the high liquidity of these securities, which is a result of compulsory market making, improved access and speed of transactions resulting from the executive network of electronically interlinked counters. Companies engaged in investment, leasing, finance, hire purchase, amusement parks etc., and companies listed on any other recognized stock exchange in India are not eligible for listing on OTCEI. Also, listing is granted only if the issued is fully subscribed to by the public and sponsor.

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ANALYSIS AND INTERPRETATION

Objective 1: FUNDAMENTAL ANALYSIS


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Two basic approaches to equity research are the "fundamental analysis" and the "technical analysis." In Fundamental analysis mainly concentrated to factors that affect the stock prices. The analysis is done in the EIC (Economy-Industry-Company) format. First you study the economic factors like interest rates, inflation, national income, political factors etc. Then study the particular industry to which the company belongs. It could be steel, cement, information technology, pharmaceuticals etc. Ultimately, the financial and other aspects of the particular company are studied. The intrinsic value of the equity shares depends on the multitude factors the earring of the company the growth rate and the risk exposure of the company have a directly bearing on the price of the share. These factors in turn rely on the host of the of other factors like economic environment in which they function, the industry belong to, and finally companies own performance. The fundamental school of thought appraised the intrinsic value of share. Economic analysis Industry analysis Company analysis ECONOMIC ANALYSIS: - the level of economic activity had an impact on investment in many ways. If the economy grows rapidly, the industry can all so be expected to show rapid growth and visa versa. When the level of economic activity is low, stock price are low and when the level of economic activities is high stock prices are high reflecting the prosperous outlook for sales and profit of the firm. the analysis of macro economic environment is essential to understand the behavior of the stock prices the commonly analyzed macro economic are as follows. GDP: - (gross domestic product) it shows the rate of growth of the economy. The GDP growth indicates the growth of the industry in the country. SAVINGS AND INVESTMENT: - stock exchange is the channel through which the saving of the investors are made available to the corporate bodies. The savings of the individuals will invested in various financial scripts like equity shares, deposits, mutual fund, real estate and bullion. These savings of the investors affect the stock exchange. INFLATION: - along with GDP inflation rate will increase.

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INTREST RATES : - the rate of interest rate affect he cost of the financial firms. A decrease in the interest rate Leads to low cost of finance for firm and more profitability. BUDGET:- it elaborate the government revenues and expenditure. A deficit budget lead to high rate of inflation and adversely affect the cost of production. Surplus budget may result in deflation. Hence budget is high favorable to stock market. THE TAX STRUCTURE : - every year in March, the business community eagerly awaits government announcement regarding tax policy. Concession and incentives given to the certain industries encourages the investment in the particular industry. Tax relives given to savings encourage savings. BALANECE OF PAYMENT :- the balance of payment is the record of country money receipt from and payment abroad . The difference between the receipt and payments may be surplus or deficit. The BOP is a measure of strength of rupee on external account. If the deficit increase, the rupee may be depreciate against other currencies. There by affecting the cost of imports the industries involved in the import and export are considerable change in foreign exchange rate. INFRASTRUCTURE FACILITIES :- the infrastructure facilities essential for growth of industry in a particular country a wide network of communication system is a must for growth of economy. Regular supply of power with out any power cut would boost the production. Banking and finance sectors also should sound enough to provide adequate support to the industry a good infrastructure facilities will affect the stock market favorable. DEMOGRAPHIC FACTORS :- the demography data provide details about the population by age, occupation, literacy and geographical location. This is need to forecast the demand for consumer goods.

2 INDUSTRY ANALYSIS:

- an industry is a group of firms that have

similar technological structure of production and produce similar products. For the connivance of the investors, the broad classification of the industry is given in financial dailies and magazines. Companies are classified to give a clear picture about their manufacturing process and products.

Factors to be consider

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growth of the industry:- the historical performance of industry in terms of growth and profitability should be analyzed. cost structure and profitability:- the cost structure and profitability that is fixed and variable cost, affects the profitability and production and profitability of the firm. Nature of the product: - the products produce by the industries are demanded by the consumers and the other industries. Nature of the competition: - the nature of competition is depending on the demand of the particular product, its profitability and price of the concerned companies scrips. The supply may arise from indigenous products and multinationals. Government policy:- the government policy affect the very nerve of industry and affects the differ from industry to industry tax subsides and tax holidays are provided for export oriented products government regulates the size of the production and the price of the certain products. Labour :- the number of trade unions and there operating mode have impact on the labour productivity and moderation of the industry. Research development:- for any industry for survive the competition in the national and international market, product and production process have to be technically competitive this depends on the R&D in the particular industry and the companies.

3 Company Analysis: - The company analysis the investor assimilates the several
bits of information related to the company and evaluates the present and future value of the stock. The risk and return associated with the purchase of the stock is analyzed o take better investment decision. The valuation process depends upon the investors ability to elicit information from the relationship and inter relationship among the company related variable.

FACTORS TO CONSIDER FOR FUTURE PRICE:1 COMPITATIVEDGE 2 EARNINGS

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3 CAPITAL STRUCTURE
4 MANAGEMNT 5 OPERATING EFFICIENCY 5 FIANCIAL PERFOMANCE

SHARE VALUE FOR PRESENT PRICE


1 HISTORIC PRICE OF STOCK 2 P/E RATIO 3 ECONOMIC CONDITION 4 STOCK MARKET CONDITION

COMPITATAVE EDGE OF THE COMPANY : in India are composed of many


individual companies. Like in software companies like INFOSYS, TCS, WIPRO, and SATYAM. These are the main companies have major market share in the stock market. The large companies are successful in meeting the capitation. Once the companies obtain the leadership position in the market, they seldom lose. it over the time they would have proved there ability to with stand competition and to have a sizeable share in the market. The competitiveness of the company can be studied with the help of following.

1 the market shares


2 growth of annul sales 3 the stability of annul sales

SALES FORECAST: - the company may be in the very good position commanding
more sales both in monitory terms and physical terms but the investor should have an idea

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whether it will continue in future or not for this purposes, forecast of sales had to be done be fore investing in shares the investor should consider the followings 1 Earning of the company 2 Capital structures

3 Preference shares
4 Debts

MANAGEMNT: - Good and capable management generates profits to the investors. The
management of the firm should efficiently plan, organize and control activities of the company. The main objective of the management is to achieve the companys objectives. If company achieve there objectives the shares holder will get very good dividend and employees will get very good salary. The good management depends on the qualities of the Manager the following are the main traits should have management 1 Ability to get along with people

2 Leadership
3 Analytical competences 4 Industries 5 Judgments 6 Ability to get things done

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Objective 2: To Study the features of investment instruments


INVESTMENT INSTRUMENTS
Equity shares: An equity share represents ownership capital. As an equity shareholder you have ownership stake in the Company and have voting rights. Equity shares are High-Risk High- Return Investments. Stock market analysts classify equity shares into the following broad categories: Blue chip shares Growth shares Income shares Cyclical shares Speculative shares

Bonds
Bonds or debentures represent long-term debt instruments. The issuer of the bond promises to pay a stipulated stream of cash flows. Bonds may be classified into the following categories. Government securities Government of India relief bonds Government agency securities Public sector unit bonds Debentures of private sector companies Preference shares

Money Market Instruments


Debt instruments, which have a maturity of less than one year at the time of issue, are called Money Market Instruments. The important money market instruments are: Treasury Bills Commercial paper Certificates of deposits

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Repose

Mutual Funds
A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciation realized is Shared by its unit holders in proportion to the number of units owned by them instead of buying directly equity shares and/or fixed income instruments you can participate in various schemes floated by mutual funds, which in turn invest in equity shares and fixed income securities. There are 3 types of mutual fund schemes: 1. Equity Schemes 2. Debt Schemes 3. Balanced Schemes.

Life Insurance
Life Insurance is a contract providing for payment of a sum of money to the person assured or, failing him/her to the person entitled to receive the same, on the happening of the event insured against. In a broad sense life insurance may be viewed as an investment. Insurance premiums represent the Sacrifice the assured sums the benefit. The important type of insurance policies in India is: 1. Endowment assurance policy 2. Money back Policy 3. Whole Life policy 4. Term assurance policy

Real Estate
For the bulk of the investors the most important asset in their portfolio is a residential house. In addition to a Residential house the more affluent investors are more likely to be interested in the following types of real estate. Agricultural land Semi-urban land Babasabaptilfreepptmba.com 35

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Time-share in holiday resort

Precious objects
Precious objects are items that are generally small in size but highly valuable in monetary terms. Some important precious objects are: Gold and Silver Precious stones Art objects

Financial derivatives
A Financial derivative is an instrument whose value is derived from the value of an underlying asset. It may be viewed as a side bet on the asset. They are classified as follows: Options Futures Swaps Warrants

INVESTMENT ATTRIBUTE
For evaluating an investment avenue, the following attributes are relevant. o Rate of return o Risk o Marketability o Tax Shelter o Convenience

Rate of Return:
The rate of return on an investment for a period (usually one year) Defined as follows: Rate of return = Annual income + (Ending price Beginning price) Beginning Price

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Risk:
The rate of return from investments like equity shares, real estate, silver, & gold cab vary rather widely. The risk of an investment refers to variability of its rate of return. Marketability: An investment is highly marketable or liquid of: a) It can be transacted quickly b) The Transaction cost is low and c) The price change between two successive transaction is negligible

Tax Shelter:
Some investments provide tax benefits; other does not. Tax benefits are of the following three kinds: 1. Initial Tax benefits 2. Continuing Tax benefits 3. Terminal Tax benefits Convenience It broadly refers to the ease which the investment can be made and looked after. The degree of convenience associated with investments varies widely. At one end of spectrum is the deposit in a saving bank accounts that can be made readily and that does not require any maintenance effort at the other end of the spectrum is the purchase of property that may involve a lot of procedural and legal hassles at the time of acquisition and great deal of maintenance. Savings and benefits Savings and Investments are different from each other: Savings are for Liquidity needs Cash in Bank, cash at home, equivalent to 3 to 6 months of income. Emergency needs Insurance for investors families life and for physical assets. Tax savings Use tax savings to boost investors investment but only if post tax returns are higher than options. Babasabaptilfreepptmba.com 37

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Investment is providing money for specific goals in life Education Retirement Acquisition of assets Large mortgage repayment

What is Risk? For short term investors: Risk is market value being lesser than expected value Risk may be market value less than ORIGINAL COST For long term investors: Risk is market value over taken by inflation PERSONAL INFLATION

SUMMARY EVALUATION OF VARIOUS INVESTMENT AVENUES


Returns Returns Capital EQUITY shares Non convertible Debentures EQUITY schemes Debt schemes Bank deposits Public provident Fund Nil High Nil Average Moderate Nil Negligible High High Low Low High Low High High High No tax on Very high dividends No tax on Very high dividends Section 80L Very high benefits Section benefits 88 Very high High Negligible Low high Average Low appreciation High High Risk Marketability liquidity Fairly high No tax on High dividends Nil High Tax shelter Convenience

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Life insurance policies Residential house Gold & Silver

Nil

Moderate

Nil

Average

Section benefits

88 Very high

Moderate

Moderate

Negligible

Low

High

Fair

Nil

Moderate

Average

Average

Nil

Average

Objective 3: To study the trends of equity in the capital market


Vibrant capital market comprising 23 stock exchange with over 9000 listed companies. Bombay stock exchange is the second largest after NYSE. Stock market trading and settlement system are world class research shows that global fund managers rate India above china and shoveling funds into the Indian stock markets, said channel news Asia Thursday, quoting a report by credit lyonnais securities Asia, a global investment banker. The Indian capital market witnessed a sharp surge with the BSE sensex crossed the 21,000 mark in intraday trading after 49 trading sessions. This was backed by high market confidence of increased FII investment and strong corporate results for the third quarter.. India has third largest investor based in the world India has one of the worlds lowest transaction costs based on screen-based transaction, paperless trading and T+2 settlements cycle. India has the distinction of consistent returns from the equities. Indian equities are highest across emerging Asia the fiscal year (April 2006-march 2007). The returns from Indian equity markets have been far ahead of other emerging markets such as Mexico (52%), Brazil (43%) or gulf co-operation council (GCC) economies such as Kuwait (26%). Indian equities have delivered the highest returns in the world the current trend in the equity market is a bull run the sensex is moving upward and investors are not shying away their funds in his market the sensex is touching new records every day it crossed the 21000 point mark on january 8th 2008 for the very year first time in history the equity market as of now is doing very well all the sectors ranging from it stock automobile etc are doing well Babasabaptilfreepptmba.com 39

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The board India growth story remains intact other factor such as interest rate increases growing fiscal deficit and nagging worries of inflation. Equity markets have relentlessly delivered values to investors in the past 3year and India stands at a very sweet spot due to its favorable demography, which will help it.

The equity market has been moving up sharply on the back of global liquidity chasing India equity story. Valuations for equities in India are no cheaper, albeit among the emerging markets, they are one of the most expensive ones. Sustainable earning growth for India inequity as asset class has potential to deliver maximum adjusted returns to long-term investors. Markets are expected to continue their growth rate but because of liquidity in the volatility can be expected in the markets. 2006 is the year to evolve hybrid debt securities and equity products given that erratic movements and the debt market are going through a change as well . equity investors primarily seeks to generate a long term capital appreciation through investments in the equity related instruments. The secondary objective is to generate and earn some dividends on the valuable funds they have invested. Equities have been doing various multinational companies was announced a lot of 1:1 or 2:1 bonus share were issued to equity share holders. They earned huge amount of divined and the share price of each company stock are sky rocking. in the coming month as the Indian economy is expected to grow at 8% you can see the effect of this on the equity market. Foreign institutional investors will continuous to remain net buyers of equity in the coming months. The markets are fairly valued at this point; however liquidity will remain strong with positive off shore interest and fund raising. India has come along way yet this just a beginning of a long-term economic expansion that India is set to experience. Since early nineties. Indias economic landscape has changed liberalization in trade and investments.

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Integration with global economy and reforms in areas of commerce, finance, tax have redefined Indias economy and placed it on a global stage. The main ammunition for the stock market must now really slim from changes in bond market. It is important that interest rates remain stable for the market to continue to perform. One needs to watch the space quite carefully as the stock market has easily absorbed in its stride everything else thrown on it.

Objective 4:- To study the behavior of Equity market


Introduction
Equity market are very uncertain world over, they can move in any direction it is bullish or bearish. There is high amount of uncertain and risk involved in these markets. In order to study the behavior of equity market in India I have taken into consideration the 5 companies share in the month of March and April 2008 they are: BAJAJ AUTO FINANCE LTD. BHEL. HDFC. ITC. SAIL. Taking the opening and closing and high and low price, I have calculated the Mean, Standard Deviation and the R (range) values for all the companies. By doing all these calculation to know about the behavior of the market is and how it performing and whether the market is bullish or bearish and whether the prices are going up , are in the right direction and there is healthy competition among the listed companies and how it is going to be in the near future in the days to come and it is a safe bet to put money into market.

BAJAJ AUTOFINANCE

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The Bajaj Group is amongst the top 10 business houses in India. Its footprint stretches over a wide range of industries, spanning automobiles (two-wheelers and three-wheelers), home appliances, lighting, iron and steel, insurance, travel and finance.

The groups flagship company, Bajaj Auto, is ranked as the worlds fourth largest two- and three- wheeler manufacturer and the Bajaj brand is well-known in over a dozen countries in Europe, Latin America, the US and Asia.

Founded in 1926, at the height of India's movement for independence from the British, the group has an illustrious history. The integrity, dedication, resourcefulness and determination to succeed which are characteristic of the group today, are often traced back to its birth during those days of relentless devotion to a common cause. Jamnalal Bajaj, founder of the group, was a close confidant and disciple of Mahatma Gandhi. In fact, Gandhiji had adopted him as his son. This close relationship and his deep involvement in the independence movement did not leave Jamnalal Bajaj with much time to spend on his newly launched business venture. His son, Kamalnayan Bajaj, then 27, took over the reins of business in 1942. He too was close to Gandhiji and it was only after Independence in 1947, that he was able to give his full attention to the business. Kamalnayan Bajaj not only consolidated the group, but also diversified into various manufacturing activities. The present Chairman and Managing Director of the group, Rahul Bajaj, took charge of the business in 1965. Under his leadership, the turnover of the Bajaj Auto the flagship company has gone up from Rs.72 million to Rs.46.16 billion (USD 936 million), its product portfolio has expanded from one to and the brand has found a global market. He is one of Indias most distinguished business leaders and internationally respected for his business acumen and entrepreneurial spirit.

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EQUITY SHARE PERFORMANCE OF BAJAJ AUTO FINANCE LTD FOR THE MONTH OF MARCH(OPENING AND CLOSING PRICES)
DATE SERIES 3-Mar-08 430 EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ TOTAL 4-Mar-08 397 5-Mar-08 378.5 7-Mar-08 390 10-Mar-08 350.5 11-Mar-08 383.3 12-Mar-08 380 13-Mar-08 368.5 14-Mar-08 395 17-Mar-08 344.8 18-Mar-08 310.5 19-Mar-08 389.5 25-Mar-08 322 26-Mar-08 324 27-Mar-08 313 28-Mar-08 313 31-Mar-08 326.9 17Days 6116.5 70.21 4929.44 37.21 18.71 30.21 9.29 23.51 20.21 8.71 35.21 14.99 49.29 29.71 -37.79 35.79 -46.79 -46.79 -32.89 1384.58 350.06 912.63 86.3 552.72 408.44 75.86 1239.7 224.7 2429.5 882.68 1428.08 1280.92 2189.3 2189.3 1081.75 21645.97 398.95 49.59 2459.17 386.95 389.35 369.45 369.5 368.65 360 359.15 355.75 329.85 342.7 325.2 320.45 317.05 310.25 311.7 329.85 37.26 39.66 19.76 19.81 18.96 10.31 9.46 6.06 -19.84 -6.99 24.49 -29.24 -32.64 -39.44 -37.99 -19.84 1388.31 1572.92 390.46 392.44 359.48 106.3 89.49 36.72 393.63 48.86 599.76 854.98 1065.37 1555.51 1443.24 393.63 13150.27 3481.71 1386.44 720.62 596.95 184.03 445.75 208.37 82.4 213.37 297.4 344.54 727.6 1104.98 1168.19 1845.38 1777.55 652.54 OPEN X-X* XX* CLOSE Y-Y* YY* R(XX*)(YY*)

Graph Showing the OPENING AND CLOSING PRICES OF BAJAJ AUTO FINANCE LTD

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ANALYSIS AND INTERPRETATION


Opening price Mean=359.79 Standard deviation=35.68 Co-variance=9.92
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Closing price Mean=349.69 Standard deviation=27.81 Co-variance=7.95 R=0.90

Mean: the average opening price is 359.79 and average closing price is 349.69
the difference between the opening and closing price is =10.1.

Standard Deviation: the standard deviation for the opening price is 35.68 and
closing price is 27.81

Co-variance: the co-variance for the opening price is 9.92 and closing price is
7.95 and this is indicates to shows they co-related because they seem to being same direction.

EQUITY SHARE PERFORMANCE OF BAJAJ AUTO FINANCE LTD FOR THE MONTH OF MARCH(HIGH AND LOW PRICES)
SERIES EQ EQ DATE 3-Mar-08 4-Mar-08 HIGH 430 400 X-X* 61.73 31.73 XX* 3810.59 1006.79 LOW 395 367.5 Y-Y* 59.08 31.58 YY* 3490.44 997.29 R(XX*)(YY*) 3647 1002.03

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EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ TOTAL

5-Mar-08 7-Mar-08 10-Mar-08 11-Mar-08 12-Mar-08 13-Mar-08 14-Mar-08 17-Mar-08 18-Mar-08 19-Mar-08 25-Mar-08 26-Mar-08 27-Mar-08 28-Mar-08 31-Mar-08 17Days

395 390 380 383.3 398.95 375 395 347.5 350 390 328 332.8 317.5 313 334.5 6260.55

26.73 21.73 11.73 15.03 30.68 6.73 26.73 20.77 18.27 21.73 40.27 -35.9 50.77 55.27 33.77

714.49 472.19 137.59 225.9 941.26 45.29 714.49 431.39 333.79 472.19 1621.67 1288.81 2577.59 3054.77 1140.41 89723.72

370 352.3 335 365 352.5 355 346.25 305 310.5 321 310.5 310.8 307.95 303.25 303.1 5710.65

34.08 16.38 0.92 29.08 16.58 19.08 10.33 30.92 25.42 14.92 25.42 25.12 27.97 32.67 32.82

1161.45 268.3 0.85 845.65 274.89 364.05 106.71 956.05 646.18 222.61 646.18 631.01 782.32 1067.33 1077.15 12541.17

910.96 355.94 10.79 437.07 508.67 128.41 276.12 642.21 464.42 324.21 1023.66 901.81 1420.04 1805.67 1108.33 11320.23

Graph Showing the High and Low Prices Of Bajaj Auto FINANCE LTD

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ANALYSIS AND INTERPRETATION


High price Mean=368.27 Standard deviation=72.65 Co-variance=19.73 Low price Mean=335.92 Standard deviation=27.16

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Co-variance=8.08 R=0.34 Mean: the average high price is 368.27 and average low price is 335.92 the
difference between the high and low price is =32.35.

Standard Deviation: the standard deviation for the high price is 72.65 and low
price is 27.16

Co-variance: the co-variance for the high price is 19.73 and low price is 8.08
and this is indicates to shows they co-related because they seem to being same direction.

BHARATH HEAVY ELECTRICAL LIMITED


BHEL manufactures over 180 products under 30 major product groups and caters to core sectors of the Indian Economy viz., Power Generation & Transmission, Industry, Transportation, Telecommunication, Renewable Energy, etc. The wide network of BHEL's 14 manufacturing divisions, four Power Sector regional centers, over 100 project sites, eight service centers and 18 regional offices, enables the Company to promptly serve its customers and provide them with suitable products, systems and services -- efficiently and at

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competitive prices. The high level of quality & reliability of its products is due to the emphasis on design, engineering and manufacturing to international standards by acquiring and adapting some of the best technologies from leading companies in the world, together with technologies developed in its own R&D centers. HEL has acquired certifications to Quality Management Systems (ISO 9001), Environmental Management Systems (ISO 14001) and Occupational Health & Safety Management Systems (OHSAS 18001) and is also well on its journey towards Total Quality Management.

BHEL has Installed equipment for over 90,000 MW of power generation -- for Utilities, Captive and Industrial users. Supplied over 2,25,000 MVA transformer capacity and other equipment operating in Transmission & Distribution network up to 400 kV (AC & DC). Supplied over 25,000 Motors with Drive Control System to Power projects, Petrochemicals, Refineries, Steel, Aluminum, Fertilizer, Cement plants, etc. Supplied Traction electrics and AC/DC locos to power over 12,000 kms Railway network. Supplied over one million Valves to Power Plants and other Industries.

BHEL's operations are organized around three business sectors, namely Power, Industry including Transmission, Transportation, Telecommunication & Renewable Energy - and Overseas Business. This enables BHEL to have a strong customer orientation, to be sensitive to his needs and respond quickly to the changes in the market. BHEL's vision is to become a world-class engineering enterprise, committed to enhancing stakeholder value. The company is striving to give shape to its aspirations and fulfill the expectations of the country to become a global player. The greatest strength of BHEL is its highly skilled and committed 42,600 employees. Every employee is given an equal opportunity to develop himself and grow in his career. Babasabaptilfreepptmba.com 49

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Continuous training and retraining, career planning, a positive work culture and participative style of management all these have engendered development of a committed and motivated workforce setting new benchmarks in terms of productivity, quality and responsiveness.

EQUITY SHARE PERFORMANCE OF BHEL FOR THE MONTH OF MARCH (OPENING AND CLOSING PRICE)

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E Q U IT Y S H A R E P E R F O R M A N C E O F B H E L F O R T H E M O N T H O

S e r i eD s a t e O P E Nx - x * x x * C L O Sy E y * y y * R = (x x *)(y y * E Q 3 - M a r - 0 28 2 3 2 4 7 . 666 1 3 3 5 2. 40 79 9 .14 25 5 . 5 1 5 7 6 0 . 2 9 1 0 9 1 . 2 5 4 3 E Q 4 - M a r - 0 28 0 9 1 0 7 . 616 1 5 9 0 2. 60 79 8 .12 25 4 . 3 1 5 4 6 0 . 4 3 3 3 8 6 . 4 5 4 1 E Q 5 - M a r - 0 28 1 1 1 2 2 . 616 5 0 4 5 .24 07 8 1 1. 40 7 . 4 91 1 5 5 4 . 11 3 1 8 4 . 7 0 E Q 7 - M a r - 0 28 0 4 05 2 . 6 62 7 7 3 .20 07 2 5 . 7 5 . 8 4 2 6 8 7 . 3 8 2 7 2 9 . 8 9 51 E Q 1 0 - M a r1- 0 8 4 . -71 52 . 5 9 1 5 8 . 5 11 9 1 0 -. 6 3 . 9 14 0 8 4 . 4 8 8 0 4 . 6 2 97 4 E Q 1 1 - M a r - 01 89 0 9 7 8 . 3 46 1 3 7 . 1 59 9 2 .17 8 . 7 9 3 5 3 . 0 6 1 4 7 2 E Q 1 2 - M a r - 02 80 5 66 8 . 6 6 4 7 1 4 .22 0 1 6 .45 2 . 5 9 1 8 1 3 . 9 2 9 2 4 . 2 3 E Q 1 3 - M a r - 01 89 5 0 3 7 . 3 41 3 9 4 . 21 8 8 2 -. 9 1 . 1 18 3 0 1 . 0 3 3 4 0 2 . 0 5 8 E Q 1 4 - M a r - 01 88 9 5 9 2 . 3 48 5 2 6 .16 88 7 8 . 9 5 . 9 6 9 0 1 7 . 4 8 7 6 8 . 6 1 4 E Q 1 7 - M a r - 01 88 7 - 81 0 9 . 31 41 9 5 5 1. 27 49 6 -. 1 7 7 . 8 36 1 6 3 4 . 1 7 9 4 4 7 . 2 05 1 E Q 1 8 - M a r - 01 88 0 1 8 7 . 334 5 0 9 6 .12 87 2 3- 1 85 0 . 1 21 2 5 3 0 . 0 1 8 1 2 1 . 6 0 . 2 E Q 1 9 - M a r - 01 88 9 5 9 2 . 3 48 5 2 6 . 61 78 4 8- 1 22 5 . 7 1 1 5 8 0 3 1 1 6 0 8 . 0 . E Q 2 5 - M a r - 01 89 2 0 6 7 . 3 44 5 3 4 .26 08 1 2 . 5 5 . 6 4 1 4 9 3 . 0 5 2 6 0 2 . 0 2 38 E Q 2 6 - M a r - 02 80 0 01 2 . 6 6 1 6 0 . 21 89 5 4 . -91 58 . 9 6 3 5 9 . 4 8 2 4 0 . 0 3 E Q 2 7 - M a r - 01 89 3 5 5 2 . 3 42 7 3 9 . 41 89 8 5 .18 1 . 8 9 1 4 1 . 3 7 6 2 2 . 3 2 E Q 2 8 - M a r - 02 80 0 01 2 . 6 6 1 6 0 . 2 80 9 2 .14 15 8 . 5 1 4 0 5 1 . 7 31 5 6 0 . 7 2 4 E Q 3 1 - M a r - 02 80 9 1 0 4 . 616 0 9 5 3 2. 70 25 6 . 5 5 . 6 4 6 8 2 9 . 3 6 8 6 4 9 . 1 2 82 t o t a l 1 7 d a3 y3s7 8 4 . 7 5 1 8 5 8 0 23 .31 52 5 6 . 6 1 6 1 8 7 4 . 2 4 0 6 1 9 . 9 15

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Graph Showing The opening And closing Prices Of BHEL

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ANALYSIS AND INTERPRETATION


Opening prices
Mean = 1987.34 Standard deviation =104.54 Co-variance =5.26

Closing price
Mean = 1973.91 Standard deviation=97.58 Co-variance=4.94 R=0.09

Mean: the average opening price is 1987.34 and average closing price is 1973.91 the
difference between the opening and closing price is =13.43.

Standard Deviation: the standard deviation for the opening price is 104.54 and
closing price is 86.44.

Co-variance: the co-variance for the opening price is 5.26 and closing price is 4.94 and
this is indicates to shows they co-related because they seem to being same direction.

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EQUITY SHARE PERFORMANCE OF BHEL FOR THE MONTH OF MARCH (HIGH AND LOW PRICES)

SERIES DATE EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ TOTAL 3-Mar-08 4-Mar-08 5-Mar-08 7-Mar-08 10-Mar-08 11-Mar-08 12-Mar-08 13-Mar-08 14-Mar-08 17-Mar-08 18-Mar-08 19-Mar-08 25-Mar-08 26-Mar-08 27-Mar-08 28-Mar-08 31-Mar-08 17 days

HIGH 2235 2137.9 2139.9 2060 1990 2010 2114.7 1980 1920 1878 1918.7 1912 2040 2034 2010 2103 2092 34575.2

X-X* 201.17 104.07 106.07 26.17 -43.83 -23.83 80.87 -53.83 -113.83 -155.83 -115.13 -121.83 6.17 0.17 -23.83 69.17 58.17

XX* 40469.36 10830.56 11250.84 684.87 1921.07 567.87 6539.96 2897.66 12957.27 24282.99 13254.92 14842.55 38.07 0.0289 567.87 4784.49 3383.75 146229.1

LOW 2082 2050 2060 1950 1820 1880 1976 1855 1845 1765 1782 1835.05 1909 1930.5 1910 1975.5 1983.3 32608.35

Y-Y* 163.87 131.87 141.87 31.87 -98.13 -38.13 57.87 -63.13 -73.13 -153.13 -136.13 -83.08 -9.13 12.2 -8.13 57.37 65.17

YY* 26853.38 17389.69 20127.09 1015.7 9629.5 1453.89 3348.94 3985.39 5347.99 23448.79 18531.38 6902.29 83.36 148.84 66.09 3291.32 4247.13 145870.8

R(XX*)(YY*) 32965.73 13723.71 15048.15 834.03 4301.03 908.63 4679.95 3398.29 8324.39 23862.25 15672.64 10121.64 56.33 2.07 193.74 3968.28 3790.94 141851.8

Graph Showing the High and Low Prices Of BHEL

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ANALYSIS AND INTERPRETATION


High price Mean =2033.83 Standard deviation =92.76 Co-variance=4.56

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Low price Mean =1918.13 Standard deviation=92.63 Co-variance=4.83 R =0.97

Mean: the average high price is 2033.83 and average low price is 1918.13 the difference
between the high and low price is =115.7.

Standard Deviation: the standard deviation for the high price is 92.76 and low price
is 92.63.

Co-variance: the co-variance for the high price is 4.56 and low price is 4.83 and this is
indicates to shows they co-related because they seem to being same direction.

HDFC BANK
The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalisation of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 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. Babasabaptilfreepptmba.com 56

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Capital structure The authorised capital of HDFC Bank is Rs.450 crore (Rs.4.5 billion). The paid-up capital is Rs.311.9 crore (Rs.3.1 billion). The HDFC Group holds 22.1% of the bank's equity and about 19.4% of the equity is held by the ADS Depository (in respect of the bank's American Depository Shares (ADS) Issue). Roughly 31.3% of the equity is held by Foreign Institutional Investors (FIIs) and the bank has about 190,000 shareholders. The shares are listed on the The Stock Exchange, Mumbai and the National Stock Exchange. The bank's American Depository Shares are listed on the New York Stock Exchange (NYSE) under the symbol "HDB". HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build sound customer franchises across distinct businesses so as to be the preferred provider of banking services for target retail and wholesale customer segments, and to achieve healthy growth in profitability, consistent with the bank's risk appetite. The bank is committed to maintain the highest level of ethical standards, professional integrity, corporate governance and regulatory compliance. HDFC Bank's business philosophy is based on four core values - Operational Excellence, Customer Focus, Product Leadership and People.

EQUITY

SHARE

PERFORMANCE

OF

HDFC

FOR

THE yy* 2747.9 367.49 2.99 2686.4 744.2

MONTH

OF

MARCH(OPENING AND CLOSING) Series Date OPEN x-x* xx* EQ EQ EQ EQ EQ 3-Mar-08 4-Mar-08 5-Mar-08 7-Mar-08 10-Mar-08 1439.4 1400 1389 1330 1250 98.2 58.8 47.8 -11.2 -91.2 9643.2 3457.4 2284.8 125.44 8317.4

CLOSE y-y* 1390.6 1357.3 1336.4 1288.4 1310.9 52.42 19.17 -1.73 -51.83 -27.28

R=(xx*)(yy*) 5147.6 1128.37 -82.69 580.5 2487.94

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EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ total

11-Mar-08 12-Mar-08 13-Mar-08 14-Mar-08 17-Mar-08 18-Mar-08 19-Mar-08 25-Mar-08 26-Mar-08 27-Mar-08 28-Mar-08 31-Mar-08 17 days

1310 1370 1355 1310 1255.1 1100 1310 1365 1420 1401 1411 1385 22800

-31.2 28.8 13.8 -31.2 -86.19 -24.12 -31.2 23.8 78.8 59.8 69.8 43.8

973.44 829.44 190.44 973.44 7428.7 58177 973.44 566.44 6209.4 3576 4872 1918.4 110517

1332 1367.8 1296.2 1316 1238.5 1231.7 1270.1 1417.9 1441.2 1435 1401.1 1320 22748

-6.18 29.67 -41.98 -25.13 -99.63 -106.4 -68.08 79.17 103.02 96.82 62.92 -18.18

38.19 880.31 1762.3 631.52 9926.1 11327 4634.9 6363.3 10613 9374.1 3958.9 330.51 66390

192.82 854.5 -579.32 784.06 8587.11 25670.92 2124.1 1898.53 8117.98 5789.84 4391.82 796.28 67890.36

Graph Showing The Opening And Closing Prices Of HDFC

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ANALYSIS AND INTERPRETATION


Opening price Mean=1341.2
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Standard deviation=80.63 Co-variance=6.01 Closing price Mean=1338.13 Standard deviation=62.49 Co-variance=4.67 R=0.79 Mean: the average opening price is 1341.2 and average closing price is 1338.13
the difference between the opening and closing price is =3.07.

Standard Deviation: the standard deviation for the opening price is 80.63 and
closing price is 62.49

Co-variance: the co-variance for the opening price is 6.01 and closing price is
4.67 and this is indicates to shows they co-related because they seem to being same direction.

EQUITY SHARE PERFOMANCE OF THE HDFC FOR THE MONTH OF MARCH (HIGH AND LOW)

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EQ U IT Y SH A R E P ER F O R M A N C E O F H D F C F O R T H E M O N T H O F M

S e r ie D a te h ig h x - x * x x * lo w y - y * y y * R = ( x x * ) ( y y * ) s EQ 3 - M a r - 1 4 3 9 . 4 6 3 . 94 0 8 3 .12 3 6 5 . 47 5 . 3 5 6 7 7 . 6 4 8 1 4 . 8 7 08 EQ 4 - M a r - 0 18 4 0 0 2 4 . 56 0 0 . 2 51 2 9 0 - 0 . 0 50 . 0 0 2 5 - 1 . 2 2 EQ 5 - M a r - 0 18 3 8 9 1 3 . 51 8 2 . 2 15 3 2 5 . 2 3 5 . 1 1 2 3 2 4 7 3 . 8 5 EQ 7 - M a r - 1 3 4 9 . 7- 2 5 . 86 6 5 . 6 41 2 5 3- 3 5 . 0 1 3 7 2 . 7 9 5 5 . 8 9 08 5 E Q 1 0 - M a r - 01 83 2 8 - 4 7 . 52 2 5 6 . 31 2 2 6- 6 4 . 0 4 1 0 2 . 4 - 3 0 4 2 . 3 8 5 E Q 1 1 - M a r - 01 83 5 5 - 2 0 . 54 2 0 . 2 51 2 6 5- 2 5 . 0 56 2 7 . 5 - 5 1 3 . 5 3 E Q 1 2 - M a r - 01 84 3 0 2 0 . 54 2 0 . 2 51 3 4 7 5 6 . 9 5 2 4 3 . 3 - 1 1 6 7 . 4 7 3 E Q 1 3 - M a r - 01 83 5 5 2 0 4 0 0 1 2 8 0- 1 0 . 0 5 1 0 1 201 E Q 1 4 - M a r 10382 6 . 4- 4 9 . 12 4 1 0 . 81 2 5 0- 4 0 . 0 51 6 0 4 1 9 6 6 . 4 5 E Q 1 7 - M a r - 01 82 7 0- 1 0 5 . 5 1 1 3 01 2 0 1- 8 9 . 0 7 9 2 9 . 9 9 3 9 4 . 7 6 1 5 E Q 1 8 - M a r - 01 82 4 0- 1 3 5 . 5 8 3 6 01 1 0 -01 9 0 . 0 35 6 1 1 9 2 5 7 7 1 . 7 8 1 E Q 1 9 - M a r - 01 83 3 0 - 4 5 . 52 0 7 0 . 31 2 4 6- 4 4 . 0 1 9 4 0 . 4 2 0 0 4 . 2 8 5 E Q 2 5 - M a r - 01 84 3 4 5 8 . 53 4 2 2 . 31 3 6 5 7 4 . 9 5 6 1 7 . 5 4 3 8 4 . 5 8 E Q 2 6 - M a r - 01 84 5 7 8 1 . 56 6 4 2 .13 3 9 5 .11 0 5 . 0 1 1 0 3 6 8 5 6 1 . 5 8 5 E Q 2 7 - M a r - 01 84 7 0 9 4 . 58 9 3 0 . 31 3 6 1 7 0 . 9 5 0 3 3 . 9 6 7 0 4 . 7 8 E Q 2 8 - M a r - 01 84 2 0 4 4 . 51 9 8 0 .13 3 6 8 . 3 7 8 . 26 1 1 5 . 2 3 4 7 9 . 9 E Q 3 1 - M a r - 01 83 9 0 1 4 . 52 1 0 . 2 15 2 9 3 . 1 3 9 4 3 .5 t o t a l 1 7 d a y2s3 3 8 4 21931 9 1 7 6 17 1 1 2 4 .4 2

Graph Showing the High and Low Prices Of HDFC

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Analysis and interpretation


High price Mean=1375.5 Standard deviation=61.46
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Co-variance=4.47 Low price Mean=1290.05 Standard deviation=73.47 Co-variance=5.69 R=0.93 Mean: the average high price is 1375.5 and average low price is 1290.05 the
difference between the high and low price is =2.578.

Standard Deviation: the standard deviation for the high price is 61.46 and low
price is 73.47

Co-variance: the co-variance for the high price is 4.47 and low price is 5.69
and this is indicates to shows they co-related because they seem to being same direction.

ITC LTD
ITC is one of India's foremost private sector companies with a market capitalization of over US $ 13 billion and a turnover of US $ 3.5 billion. Rated among the World's Best Big Companies by Forbes magazine and among India's Most Respected Companies by Business World, ITC ranks third in pre-tax profit among India's private sector corporations. ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Branded Apparel, Greeting Cards and

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other FMCG products. While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel and Greeting Cards. As one of India's most valuable and respected corporations, ITC is widely perceived to be dedicatedly nation-oriented. Chairman Y C Deveshwar calls this source of inspiration "a commitment beyond the market". In his own words: "ITC believes that its aspiration to create enduring value for the nation provides the motive force to sustain growing shareholder value. ITC practises this philosophy by not only driving each of its businesses towards international competitiveness but by also consciously contributing to enhancing the competitiveness of the larger value chain of which it is a part." ITC's diversified status originates from its corporate strategy aimed at creating multiple drivers of growth anchored on its time-tested core competencies: unmatched distribution reach, superior brand-building capabilities, effective supply chain management and acknowledged service skills in hoteliering. Over time, the strategic forays into new businesses are expected to garner a significant share of these emerging high-growth markets in India. ITC's Agri-Business is one of India's largest exporters of agricultural products. ITC is one of the country's biggest foreign exchange earners (US $ 2 billion in the last decade). The Company's 'e-Choupal' initiative is enabling Indian agriculture significantly enhance its competitiveness by empowering Indian farmers through the power of the Internet. This transformational strategy, which has already become the subject matter of a case study at Harvard Business School, is expected to progressively create for ITC a huge rural distribution infrastructure, significantly enhancing the Company's marketing reach. ITC's wholly owned Information Technology subsidiary, ITC InfoTech India Limited, is aggressively pursuing emerging opportunities in providing end-to-end IT solutions, including e-enabled services and business process outsourcing.

ITC's production facilities and hotels have won numerous national and international awards for quality, productivity, safety and environment management systems. ITC was the first company in India to be rated for Corporate Governance by ICRA, an associate of Moody's

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Investors Service, which accorded it the second highest rating, signifying "a high level of assurance on the quality of corporate governance."

ITC employs over 20,000 people at more than 60 locations across India. Ranked among India's most valuable companies by the 'Business Today' magazine, ITC continuously endeavors to enhance its wealth generating capabilities in a globalising environment to consistently reward more than 4,16,830 shareholders, fulfill the aspirations of its stakeholders and meet societal expectations. This over-arching vision of the company is expressively captured in its corporate positioning statement: "Enduring Value. For the Nation. For the Shareholder."

EQUITY SHARE PERFORMANCE OF ITC FOR THE MONTH OF MARCH(OPENING AND CLOSING PRICES)
SERIES EQ EQ DATE 3-Mar-08 4-Mar-08 OPEN 198.4 192 X-X* XX* 6.16 -0.24 37.95 0.06 CLOSE 193 184.85 Y-Y* YY* 0.7 -7.45 0.49 55.5 R(XX*)(YY*) 4.31 1.78 65

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EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ Total

5-Mar-08 7-Mar-08 10-Mar-08 11-Mar-08 12-Mar-08 13-Mar-08 14-Mar-08 17-Mar-08 18-Mar-08 19-Mar-08 25-Mar-08 26-Mar-08 27-Mar-08 28-Mar-08 31-Mar-08 17 days

184.7 191 188 191.5 195 190 190 188 186 186.1 194 193.3 195 200.1 205 3268.1

-7.54 -1.24 -4.24 -0.74 2.76 -2.24 -2.24 -4.24 -6.24 6.14 1.76 1.06 2.76 7.86 12.76

56.85 1.54 17.98 0.55 7.62 5.01 5.01 17.98 38.94 37.7 3.08 1.12 7.62 61.78 162.82 463.61

194.25 190.75 190.6 192.4 190.35 185.45 191.95 185.9 183.25 187.4 191.1 195.1 200.05 206.3 206.35 3269.05

1.95 -1.55 -1.7 0.1 -1.95 -6.85 -0.35 -6.4 -9.05 -4.9 -1.2 2.8 7.75 14 14.05

3.8 2.4 2.89 0.01 3.8 46.92 0.12 40.96 81.9 24.01 1.44 7.84 60.06 196 197.4 722.12

-14.7 1.92 7.2 -0.07 -5.38 15.34 0.78 27.13 56.47 -30.09 -2.12 2.97 21.39 110.04 179.28 376.25

Graph Showing the OPENING AND CLOSING Prices of ITC

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Analysis and interpretation


Opening price Mean=192.2
Standard Deviation=5.22 Co-variance=2.71

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Closing price
Mean=192.3 Standard Deviation=6.52 Co-variance=3.99 R=0.65

Mean: the average opening price is 192.2 and average closing price is 192.3 the
difference between the opening and closing price is =0.1.

Standard Deviation: the standard deviation for the opening price is 5.22 and
closing price is 6.52

Co-variance: the co-variance for the opening price is 2.71 and closing price is
3.99 and this is indicates to shows they co-related because they seem to being same direction.

EQUITY SHARE PERFORMANCE OF ITC FOR THE MONTH OF MARCH(HIGH AND LOW PRICES)
SERIE S EQ EQ EQ DATE 3-Mar-08 4-Mar-08 5-Mar-08 HIGH 198.4 194.9 195.05 X-X* XX* 1.06 1.12 -1.9 3.61 LOW 190 182.5 182.3 Y-Y* 1.71 5.79 5.99 YY* 2.92 33.52 35.88 R(XX*)(YY*) 1.81 11.01 10.48

1.75 3.06

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A STUDY OF EQUITY ON CAPITAL MARKETS EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ 7-Mar-08 10-Mar-08 11-Mar-08 12-Mar-08 13-Mar-08 14-Mar-08 17-Mar-08 18-Mar-08 19-Mar-08 25-Mar-08 26-Mar-08 27-Mar-08 28-Mar-08 31-Mar-08 17 days 194.95 194.65 194.8 196.9 190 192.75 190.8 189.65 189.6 194.8 196.7 202 207.7 210.9 3345.5 5 1.85 3.42 2.15 4.62 -2 0.1 -6.8 4 0.01 46.24 187 186.5 189 189.6 181.6 186.1 183 180.6 185.5 189.7 5 190.1 193.6 5 200.0 5 203.7 5 3201

1.29 1.79 0.71 1.31 6.69 2.19 5.29 7.69 2.79 1.46 1.81 5.36 11.7 6 15.4 6 1.66 3.2 0.5 1.72 44.76 4.79 27.98 59.14 7.78 2.13 3.27 28.72 138.3 239.0 1 635.2 8 2.38 3.84 -1.42 0.131 45.49 8.87 31.74 54.98 -20.09 -2.92 -0.18 27.87 128.18 217.99 520.16

4.05 16.4 -6 36

7.15 51.12 -7.2 -2 -0.1 5.2 51.84 4 0.01 27.04 118.8

10.9 1 198.8 14.1 1 570.1 1

Graph Showing the High and Low Prices Of ITC

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ANALYSIS AND INTERPRETATION


HIGH MEAN=196.8 SD=5.79 CO-Variance=2.94

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LOW MEAN =188.29 SD=6.11 CO-Variance=3.24


R=0.86

Mean: the average high price is 196.8 and average low price is 188.29 the
difference between the high and low price is =8.51

Standard Deviation: the standard deviation for the high price is 5.79 and low
price is 6.11

Co-variance: the co-variance for the high price is 2.94 and low price is 3.24 and
this is indicates to shows they co-related because they seem to being same direction.

SAIL (STEEL AUTHORITY OF INDIA LTD)


Steel Authority of India Limited (SAIL) is the largest steel maker in India. It is a public sector undertaking wholly owned by Government of India and acts like an operating company. Incorporated on January 24, 1973, SAIL has more than 131,910 employees. The company's current chairman is S.K. Roongta. With an annual production of 13.5 million metric tons, SAIL is the 16th largest steel producer in the world. SAIL is the 16th largest steel producer in the world. Major plants owned by SAIL are located at Bhilai, Bokaro, Durgapur, Rourkela, Burnpur (near Asansol)

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and Salem. SAIL is a public sector company, owned and operated by the Government of India. According to a recent survey, SAIL is one of India's fastest growing Public Sector Units. Steel Authority of India Limited (SAIL) is the leading steel-making company in India. It is a fully integrated iron and steel maker, producing both basic and special steels for domestic construction, engineering, power, railway, automotive and defence industries and for sale in export markets Ranked amongst the top ten public sector companies in India in terms of turnover, SAIL manufactures and sells a broad range of steel products, including hot and cold rolled sheets and coils, galvanized sheets, electrical sheets, structural, railway products, plates, bars and rods, stainless steel and other alloy steels. SAIL produces iron and steel at five integrated plants and three special steel plants, located principally in the eastern and central regions of India and situated close to domestic sources of raw materials, including the Company's iron ore, limestone and dolomite mines. The company has the distinction of being Indias largest producer of iron ore and of having the countrys second largest mines network. This gives SAIL a competitive edge in terms of captive availability of iron ore, limestone, and dolomite which are inputs for steel making. SAIL's wide ranges of long and flat steel products are much in demand in the domestic as well as the international market. This vital responsibility is carried out by SAIL's own Central Marketing Organization (CMO) and the International Trade Division. CMO encompasses a wide network of 34 branch offices and 54 stockyards located in major cities and towns throughout India

EQUITY SHARE PERFORMANCE OF SAIL FOR THE MONTH OF MARCH(OPENING AND CLOSING PRICES)
SERIES DATE EQ EQ EQ 3-Mar 4-Mar-08 5-Mar-08 OPEN 247 231.1 228.9 X-X* XX* 19.4 17.2 376.36 295.84 CLOSE 229.2 232.55 Y-Y* 23.4 21.8 25.15 YY* 547.56 475.24 R(XX*)(YY*) 826.254 422.92

35.31 1246.09 230.8

632.5225 432.58 72

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EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ total

7-Mar-08 10-Mar-08 11-Mar-08 12-Mar-08 13-Mar-08 14-Mar-08 17-Mar-08 18-Mar-08 19-Mar-08 25-Mar-08 26-Mar-08 27-Mar-08 28-Mar-08 31-Mar-08 17 days

229 227 230

17.3 15.3 18.3

299.29 234.09 334.89 4.62 331.24 190.44 712.89 278.89 470.89 114.49 213.16 201.64 243.36

236.9 233.25 218.2 194.2 202.05 189.05 189.05 189.75 197.55 199.95 200.1 198.7 197.5 184.75

29.5 25.85 10.8 -13.2 -5.35 18.35 18.35 17.65 -9.85 -7.45 -7.3 -8.7 -9.9 22.65

870.25 116.64 174.24 28.6225

510.35 197.64 -372.9 -11.5025

668.2225 395.505

239.95 28.25 798.06 213.85 2.15 193.5 197.9 185 195 190 201 197.1 197.5 196.1 3599.9 -18.2 -13.8 -26.7 -16.7 -21.7 -10.7 -14.6 -14.2 -15.6

336.7225 333.97 336.7225 253.23 311.5225 471.255 97.0225 55.5025 53.29 75.69 98.01 164.495 161.665 78.11 127.02 140.58

513.0225 353.34 5390.8 4484.51

6346.24 3525.96

Graph Showing the OPENING AND CLOSING Prices of SAIL

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Analysis and interpretation


Opening price Mean=211.75 Standard deviation=19.32 Co-variance=9.12 Closing price

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Mean=207.4 Standard deviation=17.81 Co-variance=8.55 R=0.69 Mean: the average opening price is 211.75 and average closing price is 207.4 the
difference between the opening and closing price is =4.35.

Standard Deviation: the standard deviation for the opening price is 19.32 and
closing price is 17.81

Co-variance: the co-variance for the opening price is 9.12 and closing price is
8.55 and this is indicates to shows they co-related because they seem to being same direction.

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E Q U IT Y SH A R E P E R F O R M A N C E O F SA IL F O R T H E M S E R I EDS A T E H I G H X - X * X X * L O W Y - Y * Y Y * R ( X X * ) ( Y Y * EQ 3 - M a r - 0285 0 3 2 . 11 50 3 3 . 6 2 2 8 . 52 4 . 56 70 3 . 6 87 48 99 . 9 2 5 5 3 EQ 4 - M a r - 2 3 7 . 51 9 . 63 58 6 . 1 2 2 2 3 . 61 9 . 63 78 6 . 9 03 88 96 . 5 1 5 5 08 5 EQ 5 - M a r - 2 3 4 . 91 7 . 02 59 0 . 7 0 2 2 7 . 52 3 . 55 75 5 . 5 44 40 91 . 8 6 8 5 08 5 EQ 7 - M a r - 0283 5 1 7 . 12 59 4 . 1 2 2252 5 2 1 . 04 74 3 . 9 43 46 91 . 3 5 0 5 E Q 1 0 - M a r2- 3 8 . 7 52 0 . 94 3 6 . 8212 3 . 0 5 9 . 13 26 5 . 5 7 34 94 9 . 6 0 8 0 1 E Q 1 1 - M a r - 0 8 0 2 2 . 14 59 0 . 6 2 2253 0 2 6 . 06 77 9 . 6 45 47 97 . 4 5 0 5 24 E Q 1 2 - M a r - 0 8 0 2 2 . 14 59 0 . 6 2 2251 6 1 2 . 01 74 5 . 6 82 46 97 . 3 5 0 5 24 E Q 1 3 - M a r2- 1 3 . 8 5 - 4 1 6 1 9 1 . 2 -51 2 . 1 6 0 . 7 8 2540 . 7 2 08 68 E Q 1 4 - M a r 2 00 84 . 4- 1 3 . 1 8 0 . 9 0 1 8 8 . 3- 1 5 . 2 4 4 . 2 92 61 90 . 2 2 3 5 45 25 63 E Q 1 7 - M a r - 0 8 8 - 1 9 . 3 9 4 . 0 2 1 8 5 . 5- 1 8 . 3 3 9 . 6 63 46 95 . 8 3 5 5 19 85 25 4 E Q 1 8 - M a r 1 09 86 . 7- 2 1 . 4 4 7 . 3 2 1 8 1 . 5- 2 2 . 5 0 3 . 1 04 47 94 . 3 9 4 5 15 25 43 E Q 1 9 - M a r 2 00 82 . 2- 1 5 . 2 4 4 . 9 2 1 9 4 . 2- 9 . 7 9 4 . 6 7 12 59 2 . 2 7 4 5 65 25 3 E Q 2 5 - M a r 2 00 81 . 5- 1 6 . 2 6 7 . 3 2 2158 9 - 1 4 . 2 2 2 . 9 02 44 94 . 1 0 5 5 35 93 E Q 2 6 - M a r 2 00 85 . 9- 1 1 . 1 4 2 . 8 0 2159 5 - 8 . 9 7 9 . 7 4 14 09 6 . 7 1 3 5 95 3 E Q 2 7 - M a r2- 0 4 . 2 5- 1 3 . 61 8 4 . 9 61 9 6 - 7 . 9 6 2 . 8 8 41 90 7 . 8 4 8 8 3 E Q 2 8 - M a r 2 00 83 . 5- 1 4 . 2 0 5 . 9 2 1 9 0 . 7- 1 3 . 1 7 5 . 0 31 28 99 . 8 5 0 5 35 25 23 E Q 3 1 - M a r - 0 8 7 - 2 0 . 4 3 4 . 7 212851 . 6 -52 2 . 4 9 6 . 3 9 48 64 4 . 5 3 8 19 85 28 t o t a l 1 7 d a y s3 7 0 3 . 4 5 5 9 4 2 . 5 2 5 6 . 7 5 5 5 6 0 . 45 75 5 0 . 5 7 346

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Graph Showing the High and Low Prices Of SAIL

ANALYSIS AND INTERPRETATION

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High price
Mean=217.85 Standard Deviation=18.69 Co-variance=8.58

Low price
Mean=203.93 Standard Deviation=18.08 Co-variance=8.87 R=0.96 Mean: the average High price is and 217.85 average Low price 203.93 is the difference
between the High and Low price is =113.92.

Standard Deviation: the standard deviation for the High price is 18.69 and Low price is 18.08. Co-variance: the co-variance for the High price is 8.58 And Low price is 8.87 and this is
indicates to show co-related because they seem to being same direction.

Analysis
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There is a high amount of volatility in the equity market Various types of risk are involved The market is bullish The price is determined in a standardized manner The price of share are moving up the price have increased enormously.

Interpretation
From the study done on 5 selected companies it is founded that all the companies share prices have moved up enormously over a short span of 17 days, and the operating procedure will be very well defined and is on par with international level. SEBI and government of India are having keeping close watch on whats happening in the markets.

Objective5: To study perception of equity form the point of investors


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Table showing sex profile of investors

Sex Male Female

Number of respondents 40 10

Percentage 80 20

80 70 60 50 40 30 20 10 0 number of respondents 1 2 percentage male female

Analysis
From the above table and chart shows that 80% of the respondents were male and 20% of females investors

Inference
From the above analysis we can concluded that majority of the investors are male .

Table showing age group of investors

age

frequency

Percentage
80

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20-30 30-40 40-50 50&above

15 18 11 6

30 36 22 12

Graph Showing Age Group Of INvestors

12% 30% 22%

36%

ANALYSIS
From the table and chart it is clear that 30% of investors belong to 20-30 amd 36% belongs to age group to 30-40 age group 22% belongs to 40-50 age group and remaining 12% investors aged 51 and above

Inferences
From the above analysis we can infer that 36% of the investors belongs to the age group of 31-40 years

Table showing occupation of investors

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occupation Salaried professional self employed Other

frequency 10 20 12 8

percentage 20 40 24 16

Graph Showing Occupation of investors


40 35 30 25 20 15 10 5 0 salaried professional self empoled other 10 24 20 20 16 12 8 frequency percentage 40

Analysis
From the table it is clear that 40% of the investors are professionals, 24% are self employed, 20% of salaried class and 16% belonging to other category including students.

Inferences
From the above analysis it can be inferred that majority of the investors are professionals.

Table showing educational qualification of investors.

Educational qualification

Frequency

Percentage

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PUC Graduation Post graduation

10 25 15

20 50 30

Graph showing educational qualification of investos

30%

20% PUC Graduation Post graduation 50%

Analysis
From the table it is shows that 50% of the investors belongs to graduation, 30% are postgraduation .and 20% are under graduation

Inferences
From the above analysis we can concluded that majority of the investors are graduation.

Table showing yearly saving of the investors:

Savings
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Frequency

Percentage
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<50000 50000 to 1lak >1lak and above

30 12 8

60 24 16

Graph shows savings of investors


60 50 40 30 20 10 0 <50000 50000 to 1lak >1lak and above Frequency Percentage

Analysis
From the above the table it is clear that 60% of investors have saving of less than rs.50000, 24% have savings between rs.50000 to 100000. 16% have saving of more than rs, 100000.

Inferences
From the above table it can be inferred that 60% of the investors have savings of less than Rs, 500000

Table showing area of investment:


Area of investment
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Frequency

Percentage
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Equity share Fixed deposit Debenture Derivatives Bank deposits

20 13 6 4 7

40 26 12 8 14

Graph showing Area of investment

14% 8% Equity share 40% Fixed deposit Debenture 12% Drivaties Bank deposits 26%

Analysis
From the above the table it is clear that 40% of investors investing in equity shares, 26% in fixed deposits, 8% in derivatives and 14% in bank deposits.

Inferences
From the above table it is clear that most of the investors invest in equity share, who are supposed to be risk takers and interested in getting good returns.

Table showing tenure of investment preferred.


Time frame
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Frequency

Percentage

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<1year 1--3year 3--5year 5years&above

11 25 8 6

22 50 16 12

Graph Showing tenure of investment period


50 45 40 35 30 25 20 15 10 5 0 50

22 11

25 16 12 8 6

Frequency Percentage

<1year

1--3year

3--5year

5years&above

Analysis
From the above table it is seen that 50% of the investors prefer going in for a period of 1-3 yrs where as 22% investors go in for less than a year, followed by 16% for 3-5 yrs and remaining 12% go in for more than 5 yrs

Inferences
From the above table it is clear that the most preferred investment tenure is 1-3 years.

Table Showing The Factor Influencing Investment Decision.


Factor influencing Frequency Percentage

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Safety Returns Liquidity

13 30 7

26 60 14

Graph Showing the factors influencing decisions

14%

26% Saftey Returns Liqudity

60%

Analysis
Form the above table it clear that 26% investors are looking for safety, 60% are influenced by return they get 14% investors are looking for liquidity.

Inferences
From the above graph and table it is inferred that returns are the factor that influence investment decision.

Table showing awareness level of investors about Equities /IPO.

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Awareness level Yes No

Frequency 35 15

Percentage 70 30

Graph Showing Awareness level of investors about Equity/IPO


70

70 60 50 40 30 20 10 0 Frequency 15 35

30

Yes No

Percentage

Analysis
It is clear that 70% of investors are aware of equities and what it is all about where as 30% are still not aware as to what, are equities and initial public offering

Inferences
It is clear that majority of the investors (70%) are aware of equities but still there are 30% who are not aware of equities.

Table showing investors preference towards various stocks.

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Stock It Banking Auto mobile Metals Pharma

Frequency 20 12 8 6 4

Percentage 40 24 16 12 8

G raph shoeing the inverstors perference towards various stocks


8% 12% 40%

16%

24%

Analysis
From the abve table it can be seen that out of the investors preference in stocks, 40% prefer IT stocks, 24% in banking, 16% in both automobiles and metals, 12% and in pharma companies 8% they preferred.

Inferences
It can be concluded that most of the invertors prefer IT stocks followed by banking.

Table showing investors experience with brokers


Investors experience NO of respondents
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Percentage
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with broker Excellent Good Fair Exploited 20 12 8 6 40 24 16 12

Graph showing investors experience with brokers


40 35 30 25 20 15 10 5 0 Excellent Good Fair 20 16 12 8 6 12 24 NO of respondents Percentage 40

Exploited

Analysis
From the table it can be seen that the investors experience with brokers, 44% have had a good experience,32% a fair experience, 16% excellent and 8% were exploited.

Inferences
It can be concluded that 44% have had good experience.

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FINDINGS, SUGGESTIONS AND CONCLUSION

Summary of findings
From the above analysis made in the previous chapter the following finding are derived. The trading process is very reliable.

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There is always risk involved in the equity market, so the various risk management techniques can be used to minimize the risk and hence for benefit from the price movements. The modus operandi of the equity market is very well defined at every level and standardized giving very little scope for manipulation and misappropriation. Thus the markets are efficient and are doing well. The equity market is experiencing tremendous growth in the recent past. This can be emphasized by the fact that everyday you have the sensex reaching new heights and some or the other company going in for Initial Public Offering. Mostly middle aged people (between 30-40) have invested in equities. Majority of the investors were professionals. Most of the respondents were graduates. The investors who have invested in equities are mostly in the income group whose savings are between Rs. 50,000 Rs. 1,00,000. 30% of the respondents have invested in other securities too. Other than equities most of the respondents have invested in fixed deposits. 70% of the investors were aware of the equity market. Most of the respondents had a good experience in their previous investment (other than equities) The respondents have invested in equities mostly to diversify their portfolio and earn huge returns. Most of the investors prefer medium term investment (1-3) years. Most of the investors got good returns from the equity market. IT stocks are the most preferred stocks followed by banking stocks. Most of the investors use both Fundamental and Technical analysis into consideration while purchasing shares. Most of the investors are aware of the equity market. Most of the respondents know about BSE and NSE Most of the investors felt that equities are a good investment instrument. Most of them would recommend to their family and friends. Most of the investors have had good experience with brokers.

RECOMMENDATION
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Equities is not a new concept, it is there from quite a long time but the awareness level among the layman the general public is very little. So awareness level hast to be created by the existing investors among their friends and family members and in return they to other people. As the price quoted through the bidding process for the equity is high and there is a huge amount of risk. People shy away, so the price should be reduced. Better analytical tools should be used to make better predictions. The client must be advised not to make their opinions while trading as a wrong position can prove to be very risky. More females should be induced to invest in equity market. All age groups of people must be induced to invest in equity market so that Heterogeneous information could be got. One should invest in equity market from a long term perspective. It is recommended that, investors should invest more in equity market, because when they do so, they are assured of huge returns. It is not a necessity that one must be very educated to invest in equities. So it is recommended that those who are not so well educated also invest in equity market. It is recommended that all kind of investors can invest in equity market.

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CONCLUSION
Indian stock market is growing at a faster rate. This growth has attracted many investors to invest in stock market. With the growth the stock market also showed high rate of risk. Risk is the major factor influencing the investors return. It is necessary to manage the risk to achieve a balanced return. It is a difficult task to value shares at any movement for decision making for purchase or sale of shares. This calls for study of various analyses of Nemours factors relating to individual company and relative performance of the market and on the other verity of factors relating to the individual company and relative performance of the market and on the other verity of factors on the national economic developments. The equity market has been moving up sharply on the back of global liquidity chasing India equity story. Valuations for equities in India are no cheaper, albeit among the emerging markets, they are one of the most expensive ones. Sustainable earning growth for India inequity as asset class has potential to deliver maximum adjusted returns to long-term investors. Markets are expected to continue their growth rate but because of liquidity in the volatility can be expected in the markets.

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BIBLIOGRAPHY

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BIBLIOGRAPHY
BOOKS
Prasanna chandra : Investment Analysis And Portfolio Management & Financial Management L M Bole : Financial Institution & Market

Magazines
Business World Business Today Out look Money

News Papers
The Economic Times The Business Standard Business Line

Internet
WWW.google.com www.NSEindia.com www.BSEindia.com www.sebigov.com www.rbi.com www.indiainfoline.com www.wikipedia.com

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ANNEXURE

Questionnaire
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Dear sir/madam,

The information obtained is used for academic purpose and will be kept confidential.

Identification:-

1. Name of the investor: ----------------------------------------2. Address--------------------------------------------------------3. Age-------------------------------------------------------------4. Sex male [ ] female [ ]

5. E- mail id---------------------------------------------------------

6. Educational qualification Graduation [ ] 7. Occupation Student [ ] 8. Yours yearly savings? <50000[ ]


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post-graduation [ ]

professional [ ]

businessman []

>50000[ ]
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9. Monthly income 10000[ ] 13000[ ] 21000[ ] 50000& above 10. What are your preferred avenues for investment? Equity [ ] Mutual fund [ ] fixed deposits [ ] debt instruments [ ] 12000[ ] 20000[ ] 50000[ ]

Secondary market [ ] bullions [ ] 11. Objectives of investment Returns [ ] Tax benefits [ ] savings [ ]

health care [ ]

12. What type of investment do you preferred? Long term [ ] short term [ ]

13. What is your level of knowledge regarding to market? Excellent [ ] good [ ] Average [ ] poor [ ]

14. Whom do you consult for your investment matter? Family [ ] Broker [ ] friends [ ] financial consultant [ ]

other [please specify] [ ]


99

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15. What type of trading you preferred? Online [ ] off-line [ ]

16. Are you Demat account holder? Yes [ ] No [ ]

17. Which of the dailies do you read? Business standard [ ] Financial express [ ] economic times [ ] business line [ ]

18. Which parameters do you consider if you were invest in the equity market? Beta [ ] Alpha [ ] P/E ratio [ ] SD[]

19. Your experience with the broker in investment decision Excellent [ ] good [ ] fair [ ] exploited [ ]

20. Which exchange you trade on? NSE [ ] BSE [ ] BGSE [ ]

21. In which sector do you like to invest more in the market? IT [ ] Metals [ ] Banking [ ] Pharmacy [ ] Auto mobiles [ ]

22. Which of the investment magazines do you read?


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Capital market [ ] Out look money [ ]

Intelligent investors [ ] dalal street journals [ ]

23. Have you switched over from one investment to another? Yes [ ] No [ ]

24. Your opinion on security market and securities

25. Your comments and suggestions?

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