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A PROJECT REPORT ON

EQUITY ANALYSIS PUBLIC BANKS Vs PRIVATE BANKS

A project report submitted for the partial fulfillment of the requirements for the award of the degree
MASTER OF BUSINESS MANAGEMENT SUBMITTED BY D. ASHA

KBR ENGINEERING COLLEGE


(Affiliated to JNTU) Pagidipally, Bhongir, Nalgonda District. 2009-2011

DECLARATION

here by declare that the enclosed project entitle EQUITY ANALYSIS PUBLIC done at Hyderabad is submitted to JNTU Hyderabad

BANKS Vs PRIVATE BANKS

Partial fulfillment of MOTILAL OSWAL SECURITIES LTD the project is an original work done by me and to the best of my knowledge this work is not submitted to any other university or college for award of any other degree, diploma or fellowship.

DATE: PLACE:

KARTHIK BARIGE
H.T.No- 10QN1E0002

ACKNOWLEDGEMENT
Accomplishment of any work involves many people and this project is no exception. I take this opportunity to express my heartfelt thanks to all those who have directly or indirectly contributed to make this Project a success. I am indebted to the Management of MOTILAL OSWAL SECURITIES LTD for providing me the opportunity to carry out the Project work in their esteemed organization. I take this opportunity to express my heartfelt thanks to the entire Equities team at MOTILAL OSWAL SECURITIES LTD for their cooperation and support during the project. I am highly indebted to the Management of my college and H.O.D. Department of Business Management for his valuable suggestions and advice. It was great experience to work under the inspiring guidance of Mrs. Swathi Associate Professor, Department of Business Management. I take this opportunity to express my gratitude to his valuable advice and suggestions for completing this project. At last, I would like to thank my family and friends of my college for the help and cooperation extended in this endeavor of mine.

ABSTRACT

In todays fast developing Indian economy, among the various financial institutions, the share market has become a major source of investment for every category of investors ranging from big institutional investors to small individual investor. Unlike earlier days when common man used to invest his savings in less risky and well trusted financial institutions and instruments like public and private sector Banks, Government Bonds and policies etc., todays investors have realized that stock market is a crucial source of earning quicker and higher returns on their investments as compared to the returns earned in traditional investment methods.

K.B.R ENGINEERING COLLEGE


(Affiliated to JNTU)

PAGIDIPALLY, NALGONDA (Dist),

CERTIFICATION
This is to certify that the Project Report title MOTILAL OSWAL SECURITIES LTD Submitted in partial fulfillment for the award of MBA Programme of Department of Business Management, JNTU, Hyderabad, was carried out by KARTHIK BARIGE bearing roll no.10QN1E0002 Under my guidance. This has not been Submitted to any other University or Institution for the Award of any Degree/diploma/certificate.

Internal Guide

ExternalGuide

Principal

TABLE OF CONTENT

TITLE Chapter- 1 INTRODUCTION

PAGE NO 6 -14

Objectives of the study Scope of the study

Research methodology Limitations of the study Chapter-2 REVIEW OF LITERATURE Chapter-3 INDUSTRY PROFILE COMPANY PROFILE DATA ANALYSES AND INTERPRETATION FINDINGS SUGGESTIONS 43 - 52 15 -42

Chapter- 4 Chapter- 5

53 - 77 78 - 82

BIBLIOGRAPHY

CHAPTER -1

INTRODUCTION

INTRODUCTION

ANALYSIS OF INVESTMENT WHAT IS SECURITY ANALYSIS?


Provisionally as purchased is based upon analysis of value and controlled by definite standards and safety principle. 1 The general future of corporation profits 2 The differential in quality between one type of company and other 3 The influence of interest rates on the dividends or earning return that he shall demand 4 The extent to which his purchase and sales should be governed In SECURITY ANALYSIS a common stock is generally considered to be worth a certain number of times its current earnings in most Instances the in investor will drive the investment values of a common stocks from the average earnings of a period between five to ten years. We must emphasize also that a reasonable ratio of market prices to average earnings is not the only requisite for a common stock investment. It is a necessary but not sufficient condition. The company must be satisfactory also in its financial set-up and management, and not unsatisfactory in its prospects.

THE THEORY OF COMMON STOCK INVESTING


Common stock are basic importance in our financial scheme and are of fascinating interest to many people Buyers and sellers are generally anxious to arrive at an intelligent idea of their values Even when the underlying motive of purchase is mere speculative greed, human nature desires to conceal this unlovely impulse behind a apparent logic. After analysts have produced mathematical equations for an input, they can generate probability distributions for annual outcomes. The simplest time-series models imply that annualvalues depend only on a constant, on the previous periods value (multiplied by a coefficient), and on an annual random shock. Coefficients are generated when historical data are used to estimate the time-series model. The extent to which an input varies around the value predicted

by the equation indicates the correct size for annual random shocks. Thus, everything is in place to project future values using computer simulation.For this analysis, two measures of uncertainty around the expected value for each input are examined. The first measure indicates the 10th and 90th percentiles of the values in each year.Those figures represent the annual variation in a given year. The second measure of uncertainty is the 10th and 90th percentiles for the average value over a specific period. For example,the average growth between 2004 and 2005 can be computed for each simulation, and a distribution of those averages can be computed. Not surprisingly, average values vary less than annual values.

Total Factor Productivity Growth.


. Total factor productivity growth is modeled as a white noise process. In the long run, total factor productivity is assumed to grow at 1.25 percent per year, abstracting from any random variation. The time-series technique used to model this growth results in substantial variation around that value (see Figure 8). The 80 percent uncertainty bands for the projection of total factor productivity growth cover a range of more than 2 percentage points in either direction. The uncertainty bands for the average values are considerably narrower.

Earnings Share of Compensation.


The earnings share of compensation is not modeled directly for purposes of estimating the timeseries equation. Total compensation is represented by three general categories: cash earnings; employer-paid payroll taxes; and health, pension, and other benefits. It is the growth in the share of compensation represented by the last category that is modeled. The employers share of payroll taxes is dictated by tax policy and so does not vary randomly over time. The growth in the share of nonwage and nontax compensation can vary randomly over time, and it is modeled as such. The earnings share of compensation is assumed to be the residual after accounting for the other two categories.

OBJECTIVES OF THE STUDY


To provide basic idea of different stock market investment instruments to investor.

To provide knowledge to investor about various type of risk associated with various investment instruments. To provide investor knowledge about P\E, P\BV and Beta that would help them in selection of script and creation of portfolio. To help investor in learning about derivative instrument future for the purpose of speculation and hedging.

SCOPE OF STUDY:
1.The analyst must be ready to pass judgment on the merits of securities and is expected to advice others on their sale, purchase, retention or exchange. 2.A proper analysis of common stock will take into account all the important points in the companys past record and present position, and it will apply informed judgment to the projection of future results.

METHODOLOGY OF THE PROJECT Research problem:


To identified the Stock Market Investment Avenue and methods to help investor in selection of script to create portfolio. And the measures of hedging the portfolio with the use of derivative instrument future.

Research design:
Research design is exploratory as the basic objective is to identified the stocks and methods to create and protect portfolio.

Data collection: Primary data : - Primary data are collected by my regularly tracking the stock price of various
script selected

Secondary data :- Secondary data are collected from various journals , websites and financial
news paper.

LIMITATIONS OF THE PROJECT

The time duration given to complete the report was not sufficient.

The report is basically is made between the horizon of two months and the situation of market is very dynamic so the conclusion or the return might not reflect the true picture.

TYPES OF INVESTMENT:Economic investments:These investments refer to the net addition to the capital stock of the society. The capital stock of the society refers to the investments made in plant, building, land and machinery which are used for the further production of the goods. This type of investments are very important for the development of the economy because if the investment are not made in the plant and machinery the industrial production will come down and which will bring down the overall growth of the economy.

Financial Investments:This type of investments refers to the investments made in the marketable securities which are of tradable nature. It includes the shares, debentures, bonds and units of the mutual funds and any other securities which is covered under the ambit of the Securities Contract Regulations Act definition of the word security.

General Investments:These investments refer to the investments made by the common investor in his own small assets like the television, car, house, motor cycle. These types of investments are termed as the household investments. When the demand in the domestic economy boost the over all productions and the manufacturing in the industrial sectors also goes up and this causes rise in the employment activity and thus boost up the GDP growth rate of the country. The organizations like the Central Statistical Organization (CSO) regularly takes the study of the investments made in the household sector which shows that the level of consumptions in the domestic markets.

CHARACTERISICS OF INVESTMENT
Certain features characterize all investments. The following are the main characteristics features if investments: -

1.Return: All investments are characterized by the expectation of a return. In fact, investments are made with the primary objective of deriving a return. The return may be received in the form of yield plus capital appreciation. The difference between the sale price & the purchase price is capital appreciation. The dividend or interest received from the investment is the yield. Different types of investments promise different rates of return.

2.Risk: Risk is inherent in any investment. The risk may relate to loss of capital, delay in repayment of capital, nonpayment of interest, or variability of returns.The risk varies with the nature of investment. Investments in ownership securities like equity share carry higher risk compared to investments in debt instrument like debentures & bonds.

3. Safety: The safety of an investment implies the certainty of return of capital without loss of money or time. . Every investor expects to get back his capital on maturity without loss & without delay.

4. Liquidity: An investment, which is easily saleable, or marketable without loss of money & without loss of time is said to possess liquidity. An investor generally prefers liquidity for his investment, safety of his funds, a good return with minimum risk or minimization of risk & maximization of return.

IMPORTANCE
In the current situation, investment is becomes necessary for everyone & it is important & useful in the following ways:

1. Retirement planning: Investment decision has become significant as people retire between the ages of 55 & 60. Also, the trend shows longer life expectancy. The earning from employment should, therefore, be calculated in such a manner that a portion should be put away as a savings. Savings by themselves do not increase wealth; these must be invested in such a way that the principal & income will be adequate for a greater number of retirement years. Increase in working population, proper planning for life span & longevity have ensured the need for balanced investments.

2. Increasing rates of taxation: Taxation is one of the crucial factors in any country, which introduce an element of compulsion, in a persons saving. In the form investments, there are various forms of saving outlets in our country, which help in bringing down the tax level by offering deductions in personal income.

3. Rates of interest: It is also an important aspect for sound investment plan. It varies between investment & another. This may vary between risky & safe investment, they may also differ due different benefits schemes offered by the investments. These aspects must be considered before actually investing. The investor has to include in his portfolio several kinds of investments stability of interest is as important as receiving high rate of interest.

4. Inflation: Since the last decade, now a days inflation becomes a continuous problem. In these years of rising prices, several problems are associated coupled with a falling standard of living. Before funds are invested, erosion of the resource will have to be carefully considered in order to make the right choice of investments. The investor will try & search outlets, which gives him a high rate of return in form of interest to cover any decrease due to inflation. He will also have to judge whether the interest or return will be continuous or there is a likelihood of irregularity. Coupled with high rate of interest, he will have to find an outlet, which will ensure safety of principal. Beside high rate of interest & safety of principal an investor also has to always bear in mind the taxation angle, the interest earned through investment should not unduly increase his taxation burden otherwise; the benefit derived from interest will be compensated by an increase in taxation.

5. Income: For increasing in employment opportunities in India., investment decisions have assumed importance. After independence with the stage of development in the country a number of organization & services came into being.

6. Investment channels: The growth & development of country leading to greater economic activity has led to the introduction of a vast array of investment outlays. Apart from putting aside saving in savings banks where interest is low, investor have the choice of a variety of instruments.

CHAPTER-2 REVIEW OF LITERATURE

Investment

Equity

Fixed Income

Mutual Fund

Deposits

Tax Sheltered

Life Insurance

Real Estate

Precious

Financial Derivatives

EQUITY SHARES: -

Types of Equity Instruments: Ordinary Shares


Ordinary shareholders are the owners of a company, and each share entitles the holder to ownership privileges such as dividends declared by the company and voting rights at meetings. Losses as well as profits are shared by the equity shareholders. Without any guaranteed income or security, equity shares are a risk investment, bringing with them the potential for capital appreciation in return for the additional risk that the investor undertakes in comparison to debt instruments with guaranteed income.

Preference Shares
Unlike equity shares, preference shares entitle the holder to dividends at fixed rates subject to availability of profits after tax. If preference shares are cumulative, unpaid dividends for years of inadequate profits are paid in subsequent years. Preference shares do not entitle the holder to ownership privileges such as voting rights at meetings.

Equity Warrants
These are long term rights that offer holders the right to purchase equity shares in a company at a fixed price (usually higher than the current market price) within a specified period. Warrants are in the nature of options on stocks.

Classification in terms of Market Capitalisation


Market capitalisation is equivalent to the current value of a company i.e. current market price per share times the number of outstanding shares. There are Large Capitalisation companies, Mid-Cap companies and Small-Cap companies. Different schemes of a fund may define their fund objective as a preference for Large or Mid or Small-Cap companies' shares. Large Cap shares are more liquid and hence easily tradable. Mid or Small Cap shares may be thought of as having greater growth potential. The stock markets generally have different indices available to track these different classes of shares.

Classification in terms of Anticipated Earnings


In terms of the anticipated earnings of the companies, shares are generally classified on the basis of their market price in relation to one of the following measures:

* Price/Earnings Ratio is the price of a share divided by the earnings per share, and indicates
what the investors are willing to pay for the company's earning potential. Young and/or fast growing companies usually have high P/E ratios. Established companies in mature industries may have lower P/E ratios. The P/E analysis is sometimes supplemented with ratios such as Market Price to Book Value and Market Price to Cash Flow per share.

Dividend Yield for a stock is the ratio of dividend paid per share to current market price.
Low P/E stocks usually have high dividend yields. In India, at least in the past, investors have indicated a preference for the high dividend paying shares. What matters to fund managers is the potential dividend yields based on earnings prospects. Based on companies' anticipated earnings and in the light of the investment management experience the world over, stocks are classified in the following groups:

Cyclical Stocks are shares of companies whose earnings are correlated with the state of the
economy. Their earnings (and therefore, their share prices) tend to go up during upward economic cycles and vice versa. Cement or Aluminium producers fall into this category, just as an example. These companies may command relatively lower P/E ratios, and have higher dividend pay-outs.

Growth Stocks are shares of companies whose earnings are expected to increase at rates that exceed
normal market levels. They tend to reinvest earnings and usually have high P/E ratios and low dividend yields.

are or information technology company shares are an example of this type. Fund managers try to identify the sectors or companies that have a high growth potential.

Value Stocks are shares of companies in mature industries and are expected to yield low growth
in earnings. These companies may, however, have assets whose values have not been recognised by investors in general. Fund managers try to identify such currently under-valued stocks that in their opinion can yield superior returns later. A cement company with a lot of real estate and a company with good brand names are examples of potential value shares.

FIXED INCOME SECURITIES


Many instruments give regular income. Debt instruments may be secured by the assets of the borrowers as generally in case of Corporate Debentures, or be unsecured as is the case with Indian Financial Institution Bonds.A debt security is issued by a borrower and is often known by the issuer category, thus giving us Government Securities and Corporate Securities or FI bonds. Debt instruments are also distinguished by their maturity profile. Thus, instruments issued with short-term maturities, typically under one year, are classified as Money Market Securities. Instruments carrying longer than one-year maturities are generally called Debt Securities.Most debt securities are interestbearing. However, there are securities that are discounted securities or zero-coupon bonds that do not pay regular interest at intervals but are bought at a discount to their face value. A large part of the interest-bearing securities are generally Fixed Income-paying, while there are also securities that pay interest on a Floating Rate basis.

A Review of the Indian Debt Market


The Wholesale Debt Market segment deals in fixed income securities and is fast gaining ground in an environment that has largely focused on equities.The Wholesale Debt Market (WDM) segment of the Exchange commenced operations on June 30, 1994. This provided the first formal screen-based trading facility for the debt market in the country. This segment provides trading facilities for a variety of debt instruments including Government Securities, Treasury Bills and Bonds issued by Public Sector Undertakings/ Corporates/ Banks like Floating Rate Bonds, Zero Coupon Bonds, Commercial Papers, Certificate of Deposits, Corporate Debentures, State Government loans, SLR and Non-SLR Bonds issued by Financial Institutions, Units of Mutual Funds and Securitized debt by banks, financial institutions, corporate bodies, trusts and others.Large investors and a high average trade value characterize this segment. Till recently, the market was purely an informal market with most of the trades directly negotiated and struck between various participants. The commencement of this segment by NSE has brought about transparency and efficiency to the debt market, along with effective monitoring and surveillance to the market.

Instruments in the Indian Debt Market 1.Certificate of Deposit


Certificates of Deposit (CD) are issued by scheduled commercial banks excluding regional rural banks. These are unsecured negotiable promissory notes. Bank CDs have a maturity period of 91 days to one year, while those issued by FIs have maturities between one and three years.

2.Commercial Paper
Commercial paper (CP) is a short term, unsecured instrument issued by corporate bodies (public & private) to meet short-term working capital requirements. Maturity varies between 3 months and 1 year. This instrument can be issued to individuals, banks, companies and other corporate bodies registered or incorporated in India. CPs can be issued to NRIs on non-repatriable and nontransferable basis.

3.Corporate Debentures
The debentures are usually issued by manufacturing companies with physical assets, as secured instruments, in the form of certificates They are assigned a credit rating by rating agencies. Trading in debentures is generally based on the current yield and market values are based on yield-to-maturity. All publicly issued debentures are listed on exchanges.

4.Floating Rate Bonds (FRB)


These are short to medium term interest bearing instruments issued by financial intermediaries and corporates. The typical maturity of these bonds is 3 to 5 years. FRBs issued by financial institutions are generally unsecured while those from private corporates are secured. The FRBs are pegged to different reference rates such as T-bills or bank deposit rates. The FRBs issued by the Government of India are in the form of Stock Certificates or issued by credit to SGL accounts maintained by the RBI.

5.Government Securities
These are medium to long term interest-bearing obligations issued through the RBI by the Government of India and state governments. The RBI decides the cut-off coupon on the basis of bids received during auctions. There are issues where the rate is pre-specified and the investor only bids for the quantity. In most cases the coupon is paid semi-annually with bullet redemption features.

6.Treasury Bills
T-bills are short-term obligations issued through the RBI by the Government of India at a discount. The RBI issues T-bills for different tenures: now 91 -days and 364-days. These treasury bills are issued through an auction procedure. The yield is determined on the basis of bids tendered and accepted.

7.Bank/FI Bonds
Most of the institutional bonds are in the form of promissory notes transferable by endorsement and delivery. These are negotiable certificates, issued by the Financial Institutions such as the IDBI/ICICI/ IFCI or by commercial banks. These instruments have been issued both as regular income bonds and as discounted long-term instruments (deep discount bonds).

8.Public Sector Undertakings (PSU) Bonds


PSU Bonds are medium and long term obligations issued by public sector companies in which the government share holding is generally greater than 51%. Some PSU bonds carry tax exemptions. The minimum maturity is 5 years for taxable bonds and 7 years for tax-free bonds. PSU bonds are generally not guaranteed by the government and are in the form of promissory notes transferable by endorsement and delivery. PSU bonds in electronic form (demat) are eligible for repo transactions.

MUTUAL FUND SCHEMES

An investor can participant in various schemes floated by mutual fund instead of buying equity shares. In mutual funds invest in equity shares & fixed income securities. There are three broad types of mutual fund schemes. Growth schemes Income schemes Balanced schemes

DEPOSITS
It is just like fixed income securities earn a fixed return. However, unlike fixed income securities, deposits are negotiable or transferable. The important types of deposits in India are: Bank deposits Company deposits Postal deposits.

TAX-SHELTERED SAVING SCHEMES


It provides benefits to those who participate in them. The most important tax sheltered saving schemes in India is: Employee provident fund scheme Public provident fund schemes National saving certificate

LIFE INSURANCE

In a broad sense, life insurance may be viewed as an investment. Insurance premiums represent the sacrifice & the assured sum the benefit. In India, the important types of insurance polices are: Endowment assurance policy Money back policy Whole life policy

REALESTATE
For the bilk 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 likely to be interested in the following types of real estate: Agricultural land Semi-urban land

PRECIOUS OBJECTS: It is highly valuable in monetary terms but generally they are small in size. The important precious objects are: Gold & silver Precious stones Art objects

FINANCIAL DERIVATIVES:
A financial derivative is an instrument whose value is derived from the value of underlying asset. It may be viewed as a side bet on the asset. The most import financial derivatives from the point of view of investors are: Options Futures.

RISK RETURN OF VARIOUS INVESTMENT AVENUES

Every investment is characterized by return & risk. Investors intuitively understand the concept of risk. A person making an investment expects to get some return from the investment in the future. But, as future is uncertain, so is the future expected return. It is this uncertainty associated with the returns from an investment that introduces risk into an investment. Risk arises where there is a possibility of variation between expectation and realization with regard to an investment.

Meaning of Risk
Risk & uncertainty are an integrate part of an investment decision. Technically risk can be define as situation where the possible consequences of the decision that is to be taken are known. Uncertainty is generally defined to apply to situations where the probabilities cannot be estimated. However, risk & uncertainty are used interchangeably.

Types of risks
1.SYSTAMATIC 2.UNSYSTAMATIC

1.Systematic risk: Systematic risk is non diversifiable & is associated with the securities market as well as the economic, sociological, political, & legal considerations of prices of all securities in the economy. The affect of these factors is to put pressure on all securities in such a way that the prices of all stocks will more in the same direction.

(A) Market risk


Market risk is referred to as stock variability due to changes in investors attitudes & expectations. The investor reaction towards tangible and intangible events is the chief cause affecting market risk

(B) Interest rate risk


There are four types of movements in prices of stocks in the markets. These may termed as (1) long term, (2) cyclical (bull and bear markets), (3) intermediate or within the cycle, and (4) short term. The prices of all securities rise or fall depending on the change in interest rates. The longer the maturity period of a security the higher the yield on an investment & lower the fluctuations in prices.

(C) Purchasing Power risk


Purchasing power risk is also known as inflation risk. This risk arises out of change in the prices of goods & services and technically it covers both inflation and deflation periods. During the last two decades it has been seen that inflationary pressures have been continuously affecting

the Indian economy. Therefore, in India purchasing power risk is associated with inflation and rising prices in the economy.

2. Unsystematic Risk: The importance of unsystematic risk arises out of the uncertainty surrounding of particular firm or industry due to factors like labour strike, consumer preferences and management policies. These uncertainties directly affect the financing and operating enviourment of the firm. Unsystematic risks can owing to these considerations be said to complement the systematic risk forces.

(A) Business risk


Every corporate organization has its own objectives and goals and aims at a particular gross profit & operating income & also accepts to provide a certain level of dividend income to its shareholders. It also hopes to plough back some profits. Once it identifies its operating level of earnings, the degree of variation from this operating level would measure business risk.

(B) Financial Risk


Financial risk in a company is associated with the method through which it plans its financial structure. If the capital structure of a company tends to make earning unstable, the company may fail financially. How a company raises funds to finance its needs and growth will have an impact on its future earnings and consequently on the stability of earnings. Debt financing provides a low cost source of funds to a company, at the same time providing financial leverage for the common stock holders. As long as the earnings of the company are higher than the cost of borrowed funds, the earning per share of common stock is increased. Unfortunately, a large amount of debt financing also increases the variability of the returns of the common stock holder & thus increases their risk.

PORTFOLIO Meaning of portfolio:A combination of securities with different risk & return characteristics will constitute the portfolio of the investor. Thus, a portfolio is the combination of various assets and/or instruments of investments. The combination may have different features of risk & return, separate from those of the components. The portfolio is also built up out of the wealth or income of the investor over a period of time, with a view to suit his risk and return preference to that of the portfolio that he holds. The portfolio analysis of the risk and return characteristics of individual securities in the portfolio and changes that may take place in combination with other securities due to interaction among themselves and impact of each one of them on others. An investor considering investments in securities is faced with the problem of choosing from among a large number of securities. His choice depends upon the risk and return characteristics of individual securities. He would attempt to choose the most desirable securities and like to allocate is funds over this group of securities. Again he is faced with the problem of deciding which securities to hold and how much to invest in each. The investor faces an infinite number of possible portfolios or groups of securities. The risk and return characteristics of portfolio differ from those of individual securities combining to form a portfolio. The investor tries to choose the optimal portfolio taking in to consideration the risk return characteristics of all possible portfolios. As the economy and the financial environment keep changing the risk return characteristics of individual securities as well as portfolios also change. This calls for periodical review and revision of investment portfolios of investors. An investor invests his funds in a portfolio expecting to get a good return consistent with the risk that he has to bear. The return realized from the portfolio has to be measured and the performance of the portfolio has to be evaluated. It is evident that rational investment activity involves creation of an investment portfolio. Portfolio management comprises all the processes involved in the creation and maintenance of an investment portfolio. It deals specifically with the security analysis, portfolio analysis, portfolio selection, portfolio revision and portfolio evaluation.

PORTFOLIO DESIGN

Before designing a portfolio one will have to know the intention of the investor or the returns that the investor is expecting from his investment. This will help in adjusting the amount of risk. This becomes an important point from the point of view of the portfolio designer because if the investor will be ready to take more risk at the same time he will also get more returns. This can be more appropriately understood from the figure drawn below.

R1

Expected Returns

R2

Risk less Investment M1 Risk M2

From the above figure we can see that when the investor is ready to take risk of M 1, he is likely to get expected return of R1, and if the investor is taking the risk of M2, he will be getting more returns i.e. R2. So we can conclude that risk and returns are directly related with each other. As one increases the other will also increase in same of different proportion and same if one decreases the other will also decrease.

From the above discussion we can conclude that the investors can be of the following three types:

1. Investors willing to take minimum risk and at the same time are also expecting minimum returns. 2. Investors willing to take moderate risk and at the same time are also expecting moderate returns. 3. Investors willing to take maximum risk and at the same time are also expecting maximum returns.

Types of portfolio for study:


In portfolio Design, we are considering only two types of portfolio. They are as follow: 1. Random Portfolio 2. Sector Portfolio

1. Random portfolio
Random portfolio consists of the scripts that are randomly selected by the investor by its own knowledge and preference of the stocks. Here there is no analysis is done of the script, they are selected on the tips and buts received by the investors from the external sources.

Features of random portfolio


There is no method used for selection of the script in the portfolio. Selection is based on the individual criteria for the scripts. The investment is made for higher return in short term. Generally in India most of the portfolio are selected according to this random methods as no investor himself in that much analysis of the script.

Advantages of random portfolio

Easier to keep a track on the market as not much time wasted in the analysis. This portfolio seems to have perform better in short term as script are generally which are performing better at that time. Tips are available every where for the investor to pouch. It is the experience of the individual that can fetch him good return.

Disadvantages of random portfolio


There is every chance that you may select a script that has a very bad background in the market. Not every time the tips pay off for you. You need to have strong reason to select that script. Such portfolios are not able to sustain when there is a crisis in the market. There is a very high risk and return involve in such portfolio.

2. Sector specific portfolio


Sector specific portfolio includes securities of those companies which are in the same business. Sector portfolios are very useful when there is a particular sector which is doing very good and has a bright future a head. Sector portfolio has the securities of those companies that engage in same kind of business. e.g. In late 1990s sector that was providing the highest return was information technology. Investors who have invested their money in these securities had earned very high return.

Features of sector portfolio


Script form the same group of companies that are in to the similar type of business.

Maximum exposure to the industry/sector. So any news or event has the direct effect on the portfolio. Risk regarding the portfolio increases as it is expose to sector specific ups and downs. Useful investment tools for speculator and short-sellers. It is better suited for the sectors which have been providing good revenue in the near past.

Advantages of sector portfolio


It is better suited to investors who are willing to take risk. It provides better short term return then other portfolios. It is easy to keep a watch on one sector rather than many. You can have a good command over the things happening. Limited exposure to other sectors keeps the portfolio safe from the performance of other sectors in the economy.

Disadvantages of sector portfolio


It is a highly risky portfolio as risk associated with the sector directly affects the performance of the portfolio. These types of portfolios are not suited for long-term investor as risk taken for the return can be too high. There is always the possibly many scripts in the sector may not be giving that much good attractive return as others. They may eat the profits from other scripts.

Book value is based on historical costs, not current values, but can provide an important measure of the relative value of a company over time. Book value can be figured as assets minus liabilities, or assets minus liabilities and intangible items such as goodwill; either way, the figure that results is the company's net book value. This is contrasted with its market capitalization, or total share

price value, which is calculated by multiplying the outstanding shares by their current market price. You can also compare a company's market value to its book value on a per-share basis. Divide book value by the number of shares outstanding to get book value per share and compare the result to the current stock price to help determine if the company's stock is fairly valued. Most stocks trade above book value because investors believe that the company will grow and the value of its shares will, too. When book value per share is higher than the current share price, a company's stock may be undervalued and a bargain to investors. In case of our sensex as we can see that it is currently trading at a P/B ratio of 4.41 this shows the average P/B ratio prevailing in the market. So any script trading below the P/B of 4.41 can said to be under valued if we keep the BSE SENSEX as bench mark. But it would be advisable for an investor to also look at the sector leaders P/B ratio to know what is the common industry P/B and based on that he can decide about whether to invest in the company or not. As such there is no guarantee that low P/B would able to give better return but this stocks are considered to be undervalued so one can think that this companies are undervalued so chances of appreciation are very high in case of low P/B scrip. Such companies having low P/B ratio can be considered as value stock and one can thin about investing in those companies.

The P/E ratio as a guide to investment decisions


Earnings per share alone mean absolutely nothing. In order to get a sense of how expensive or cheap a stock is, you have to look at earnings relative to the stock price and hence employ the P/E ratio. The P/E ratio takes the stock price and divides it by the last four quarters' worth of earnings. If AB ltd is currently trading at Rs. 20 a share with Rs. 4 of earnings per share (EPS), it would have a P/E of 5. Big increase in earnings is an important factor for share value appreciation. When a stock's P-E ratio is high, the majority of investors consider it as pricey or overvalued. Stocks with low P-E's are typically considered a good value. However, studies done and past market experience have proved that the higher the P/E, the better the stock. First, one can obtain some idea of a reasonable price to pay for the stock by comparing its present P/E to its past levels of P/E ratio. One can learn what is a high and what is a low P/E for the individual company. One can compare the P/E ratio of the company with that of the market giving a relative measure. One can also use the average P/E ratio over time to help judge the reasonableness of the present levels of prices. All this suggests that as an investor one has to attempt to purchase a stock close to what is judged as a reasonable P/E ratio based on the comparisons made. One must also realize that we must pay a higher price for a quality company with quality management and attractive earnings potential. In the case if we look at the benchmark of BSE sensex on 1 st of December it is trading at a P/E of 24.49. So if we just keep the benchmark P/E in mind then we can say that any stock which is trading bellow the P/E of 24.49 is available cheaply. But for an investor it is also advisable to look at the industry P/E as it is more important because just looking at the above position we can see that SBI is trading at a very low P/E of around 8 but if you see that in banking sector that to public sector banks the normal industry P/E is 8 all most all banks are trading around 8 or bellow the P/E of 8. So always it is advisable to look at what is the P/E of industry in which we want to invest to get the better idea, because if we take the example of IT industry there almost you will find companies around P/E of 30. so if any IT company having of P/E would considered to be a cheap option for the investor to invest in to. So the investor should also look at the industry average P/E. The new investor can know about the industry P/E or any other companies P/E in any financial

magazine or from the internet also if he does not know how to calculate the P/E or is not having the data available with them. The formula for calculating the P/E ratio is

P/E = Current Market Price Earning Per Share

RANDOM PORTFOLIO
Random portfolio consists of the scripts that are randomly selected by the investor by its own knowledge and preference of the stocks.. We are considering BETA factor to design our Random Portfolio.

Beta Factor Beta indicates the proportion of the yield of a portfolio to the yield of the
entire market (as indicated by some index). If there is an increase in the yield of the market, the yield of the individual portfolio may also go up. If the index goes up by 1.5% and the yield of your portfolio goes up by 0.9%, the beta is 0.9/1.5 i.e 0.6. in other words, beta indicates that for every 1 % increase in the market yield, the yield of the portfolio goes up by 0.6%. High beta shares do move higher than the market when the market rises and the yield of the fund declines more than the yield of the market when the market falls. In the Indian context a beta of 1.2% is considered very bullish. You can be indifferent to market swings if you know your stocks well. Or you can put your portfolio into neutral or bias for the upside if you're bullish or a little for the downside if you're bearish. One way to do that is to have a mix of stocks that have certain betas in your portfolio. When investors are bullish on the market, they like to have high beta stocks in their portfolios because if they're right, then their stocks go up faster than the market in general, and their performance is better than the market. If investors are bearish on the market, then they use the low beta or negative beta stocks because their portfolios will go down less than the market and their performance will be better than the general market. And if they want to be neutral, they can then make sure that they have stocks with a beta of 1 or develop a portfolio that has stocks with betas greater than 1 and less than 1 so that they have the whole portfolio with an average beta of 1.A beta for a stock is derived from historical data. This means it has no predictive value for the future, but it does show that if the stock continues to have the same price patterns relative to the market in general as it has in the past, you've got a way of knowing how your portfolio will perform in relation to the market. And with a portfolio with an average beta of 1, you can create your own index fund since you'll move more or less in tandem with the market.

Interpretation of Beta
When B = 1 means that the scrip has same volatility as compared to Index. Suitable for moderate investor. When B>1 means that scrip is more volatile as compared to market suitable for aggressive investors. When B<1 then scrip is less volatile as compared to market and suitable for defensive investors. Beta of scrips plays vital role in scrip selection in Portfolio management. Portfolio can be created in many ways as sector wise, diversified in various sector, beta wise scrip portfolio. SO BASED ON THIS BETA NOW WE WILL PREPARE THREE PORTFOLIO TO MATCH THE RISK TAKING CAPACITY OF AN INVESTOR THAT IS PORTFOLIO

AGGRESSIVE

MODERATE

DEFENSIVE

DERIVATIVES
Derivatives is a product whose value is derived from the value of one or more basic variables, called bases (underlying asset, index, or reference rate), in a contractual manner. The underlying asset can be equity, forex or commodity or any other asset. For example, wheat farmer may wish to sell their harvest at a future date to eliminate the risk of a change in prices by the date. Such a transaction is an example of a derivative. The price of this derivative is driven by the spot price of wheat which is the underlying. In the Indian context the Securities Contracts (Regulation) Act. 1956 (SC(R)A) defines derivative to include 1. A security derived from a debts instrument, share, loan whether secured or unsecured, risk instrument or contract for differences or any other form of security. 2. A contract, which derives its value from the prices, or index of price, of underlying securities. The derivatives are securities under the (SC(R)A) and hence the trading of derivatives is governed by the regulatory framework under the (SC(R)A).

TYPES OF DERIVATIVES

The most commonly used types of derivatives are as follows: o Forwards: A forward contract is a customized contract between two entities, where settlement takes place on a specific date in the future at todays pre-agreed price. o Futures: A future contract is an agreement between two parties to buy or sell an asset at a certain time in the future at a certain price. Future contracts are special types of forward contract in the sense that the former are standardized exchange-traded contracts. o Options: Options are of two types call and put. Calls give the buyer the right but not the obligation to buy a gives quantity of the underlying asset, at a given price on or before a given future date. Plus give the buyer the right, but not the obligation to sell a given quantity of the underlying asset at a given price on or before a given date.

INTRODUCTION TO FUTURE
Future markets were designed to solve the problems that exist in forward markets. A future contract is an agreement between two parties to buy or sell an asset at a certain time in the future at a certain price. But unlike forward contracts, the future contracts are standardized and exchange traded. To facilitate liquidity in the future contracts, the exchange specifies certain standard features of the contract. It is a standardized contract with standard underlying instrument, a standard quantity and quality of the underlying instrument that can be delivered, (or which can be used for reference purpose in settlement) and a standard time of such settlement. A future contract may be offset prior to maturity by entering into an equal and opposite transaction. More than 99% of future transactions ate offset this way.

The standardized items in a future contract are:


Quantity of the underlying. Quality of the underlying. The date and the month of delivery. The units of price quotation and minimum price change. Location of settlement.

FEATURES OF A FUTURE CONTRACT Future contracts are organized / standardized contracts, which are traded on the exchanges. These contracts, being standardized and traded on the exchanges are very liquid in nature. In futures market, clearing corporation/ house provides the settlement guarantee.

FUTURE TERMINOLOGY

Spot Price: The price at which an asset trades in the spot market. Future Price: The price at which the future contracts trades in the market. Contract Cycle: The period over which a contract trades. The index futures contracts on
the NSE have one-month, two-months and three-months expiry cycle, which expire on the last Thursday of the month. Thus a January expiration contract would expire on the last Thursday of January and a February expiration contract would cease trading on the last Thursday of February. On the Friday following the last Thursday, a new contract having a three-month expiry would be introduced for trading.

Expiry Date: It is the date specified in the future contract. This is the last day on which
the contract will be traded, at the end of which it will cease to exist.

Contract Size: The amount of asset that has to be delivered under one contract. For
instance, the contract size on NSEs futures market is 200 Nifties.

Basis: Basis is usually defined as the spot price minus the future price. There will be a
different basis for each delivery month for each contract. In a normal market, basis will be negative. This reflects that futures prices normally exceed spot prices.

Cost of Carry: The relationship between futures prices and spot prices can be
summarized in terms of what is known as the cost of carry. This measures the storage cost plus the interest that is paid to finance the asset less the income earned on the asset.

Initial Margin: The amount that must be deposited in the margin account at the time a
futures contract is first entered into is known as initial margin.

Marking-to-Market: In the future market, at the end of each trading day, the margin
account is adjusted to reflect the investors gain or loss depending upon the futures closing price. This is called marking-to-market.

Maintenance Margin: This is somewhat lower than the initial margin. This is set to
ensure that the balance in the margin account never becomes negative. If the balance in the margin account falls below the maintenance margin, investor receives a margin call and is expected to top up the margin account to the initial level before trading commences on the next day.

CHAPTER-3 COMPANY PROFILE

SMC Group, founded in 1990, is Indias best Equity Broking House and the Largest Distribution Network, providing a wide range of financial services and investment solutions. A blend of extensive experience, diverse talent and client focus has made us achieve this landmark. Over the years, SMC has expanded its operations domestically as well as internationally. Existing network includes regional offices at Mumbai, Kolkata, Chennai, Cochin, Ahmedabad, Jaipur, Hyderabad, Bangalore plus a growing network of 2300+ offices spread across 425 cities/towns in India. We offer a diverse range of financial services which includes institutional and retail brokerage of equity , currency, commodities, derivatives , online trading , depository services , fixed Deposits, IPOs and mutual funds distribution , dedicated desk for NRI and institutional clients , insurance broking , clearing services , margin funding, investment banking , portfolio management, wealth advisory & research . We have a highly efficient workforce of over 6000 employees and over 7500 financial advisors serving the financial needs of more than 6,00,000 satisfied investors. We are also amongst the first financial firms in India to expand operations in the lucrative gulf market, by acquiring license for broking and clearing member with Dubai Gold and Commodities exchange (DGCX.

The SMC Advantage :


Large avenues of investment solutions and financial services under one roof Personalized solution and attention offered to each investors Research support and timely advice by our high-tech research wing An extensive network of branch offices A perfect blend of latest technology and rich experience of over 20 years Honesty, transparency and fairness imbibed in all our dealings

Providers of one of the best trading platforms in terms of speed, convenience and risk management to trade in NSE, BSE, F&O, NCDEX, MCX,, MCX-SX, NMCE, ICEX, ACE & DGCX

Founders & Promoters


Subhash C. Aggarwal

Chairman & Managing Director: SMC Global Securities Ltd


Mr. Aggarwal is co-founder and promoter of SMC Group. He has vast experience, indepth knowledge and strong understanding of various intricacies of the Securities

Market and Financial Services. He has exhaustive and rich experience of securities business of more than 20 years. His exceptional leadership skills and outstanding commitment have made this group one of the leading brokerage and distribution houses of the country. Under his leadership, SMC has diversified its business from stock broking and arbitrage to Commodities Broking, Distribution of Mutual Funds, IPOs, Insurance products, Wealth Management and Advisory Services. Mr. Aggarwal is a Fellow member of ICAI. Mahesh C. Gupta

Vice-Chairman & Managing Director: SMC Global Securities Ltd .


Mr. Gupta has co-founded and promoted the SMC Group. He has rich experience of more than 20 years in the securities market. His exceptional leadership skills and outstanding commitment has made SMC as one of the leading investment solutions and services provider. He possesses expertise in managing and controlling the finance needs, risk management and surveillance. His disciplined style of working is an inspiration to the workforce of SMC. Mr. Mahesh C. Gupta is a fellow member of ICAI

Corporate Ethos Our Vision


To be a global major in providing complete investment solutions, with relentless focus on investor care, through superior efficiency and complete transparency.

Core Values Ethical deals : Honesty is the only policy.


Experience and trust: Over 20 years of experience has made SMC earn the trust of more than 6,00,000 Investors

Expertise : Know-how and skills to provide investors an edge.


Personalised Solutions: Every investor is unique. Every solution is unique.

Our Approach
Value for investors trust: SMC

values the trust reposed in by the clients and is committed to uphold it at all cost. Integrity and honesty: Integrity, honesty and transparency are the underlying principles in all our dealings. Personaliszed attention: The most valued asset is our relationship with the clients, which has been built over years by giving personalized attention.

SMC has a vast network extending to 425+cities and towns ensuring easy accessibility, convenience and hassle free trading experience. Research based advisory services: SMC offers proactive and timely world class research based advice and guidance to its clients to enable them to take informed decisions.
Network which works:

Our Credentials

Best Equity Broking House (Source: BSE-Dun and Bradstreet, 2010) Largest distribution network in the country (Source: BSE-Dun and Bradstreet, 2010) Awarded the Fastest Growing Retail Distribution Network in financial services (Source: Business Sphere, 2010) Received Major Volume Driver award from BSE for 3 years consecutively(2004-05, 2005-06 and 2006-07) Nominated amongst the top 3, in the CNBC Optimix Financial Services Award 2008 under "National Level Retail Category" Amongst the First Financial Firms in India to expand operations in the lucrative gulf market, by acquiring license for broking and clearing member with Dubai Gold and Commodities exchange (DGCX) One of the largest proprietary desk for doing near risk-free arbitrage in equities and commodities

Institute of Economic Studies (IES) has honored our Chairman with the Pride of India and Udyog Rattan awards. Also, IIFS has conferred him with Glory of India award recently

Memberships & Registrations


Trading Member of NSE, BSE, NCDEX, MCX, DGCX, NMCE, ICEX, ACE, MCX-SX ,National Spot Exchange Ltd.(NSEL) & NCDEX Spot Exchange Ltd. ( NSPOT). Clearing Member in NSE (F&O, Currency), BSE (F&O, Currency),

MCX (Commodities), NCDEX, MCX-SX, ICEX, ACE & DGCX Depository Participant with CDSL & NSDL Category 1 Merchant banker Corporate Insurance Broker for Life & General Insurance (Registered with IRDA) Distributor of IPOs & Mutual Funds (Registered with AMFI) Portfolio Management Services (PMS) registered with SEBI Non Banking Financial Company (NBFC) registered with RBI Association with London based ICON Capital, (Registered under FSA & NSA ,Lon

ACE Derivatives and commodities Exchange (ACE) don) Register


With more than 2300 offices across 425 cities and a substantial client base of over 6,00,000 satisfied investors, SMC is known for its life-long and steady relationships with all its Business Partners/Associates. We believe in long-term commitment and association that plays a vital role in the growth of any business. SMC believes in growing with its Business Partners/Associates. Our dedicated efforts and continuous improvement in our services has made us one of the most respected and largest broking houses with a huge network of Business Partners/Associates across India. SMC provides its sub-broker with the right tools and support. Association with SMC means a strong bond with one of the largest broking firms of India. SMC invites you to become a Business Partners/Associates

Institutional Broking
Overview
Institutional Broking Services at SMC cater to the investment needs of leading domestic and foreign institutional investors. Backed by incisive research, this division is a one-stop investment gateway and knowledge repository for the clients, servicing their unique and sophisticated needs.

Our offerings
Our efficient execution, quality research, top quality human resources and complete compliance with stock exchange regulations as well as business standard ethics lend towards our exemplary institutional services to investors through: IPOs Equities Derivatives Mutual Funds We also focus on identifying undiscovered value stocks to investors. Through our gamut of institutional services, this division is well suited to the investment side of all classes of institutional investors including Mutual Funds , Insurance Companies , Banks, and FIIs

Our edge

A wide array of products and services, specifically aimed at serving unique needs of unique clients. A research division with a designated team for each asset class and sector to evaluate market trends and make unbiased and objective reports Specialized services for international investors Idea Generation and Stock Picks In-depth, detailed and insightful coverage across different sectors which comprise : o Initiating coverage reports o Result Previews o Result Updates o Sectoral Reports o India Strategy Reports

An international distribution network servicing the needs of institutions & corporate

Clearing Services Overview : SMC is one of the leading clearing members, which currently manages
the clearing services for more than 134 trading members in different segments of different exchanges.

Our offerings
We are Clearing Member of NSE (F&O, Currency), BSE (F&O, Currency), MCX (Commodities), MCX-SX, NCDEX, ICEX, ACE & DGCX

Our edge

Trusted name in Broking Industry One of the leading Clearing member of NSE Incredible track record of timely delivery of Commitments Concern about timely need of Trading Members being, in the same fraternity Attitude to follow the best practices in the Industry Committed approach to business Technologically sound to cope with the growing needs of Trading Members

Senior Professional personnel for every service need

Research
Overview
With the EIC (Economy, Industry, Company) approach, our Research team offers timely Research reports covering investment summary, trend of world markets, sector trends, commodity trends. The same is covered in our esteemed weekly magazine Wise Money. We have a team of highly experienced analysts, who cover stocks, commodity, currency, mutual funds and special reports. All our research reports, estimates and enhanced analytics are available on our website www.smctradeonline.com

Our offerings
Equity Reports:

Morning Mantra Evening Buzzer Derivatives IPO Reports Wise Money equity content.

Commodities Reports:

Morning Mantra- Agri Morning Mantra- metals & energy Afternoon Metals & Energy Evening Buzzer- Agri & Metals Special Commodities Updates Trading opportunity report DGCX Daily

Currency Reports:

Currency Daily Afternoon Currency Buzzer

Mutual fund Reports:

NFO Analysis Mutual Fund Tracker Mutual Fund Weekly update Portfolio Monitor

Special reports:

Result Updates Pre-Budget Analysis Post-Budget Analysis

Newsletters:

Wise Money

Online Trading
Overview
SMC Online is your single gateway for all your financial needs. Now, you can invest online in Equities, Commodities, IPOs, Mutual Fund Schemes and Currency Futures anywhere anytime. You can access a multitude of resources like live quotes, charts, research, advice and online assistance to help you take informed decisions. You can also access your account from anywhere using our Call-N-Trade services. So get empowered and enrich your experience of online trading, which opens the door to a whole new world of possibilities to get convenient & hassle-free online stock trading experience.

Our offerings
SMC Trading Platforms offer investors the ease and convenience of an uninterrupted trading experience. SMC offers seamless Online Trading experience with freedom to opt for a product that meets your needs:

SMC SELECT - Easy to use simple web-based trading platform for beginners

SMC EXCLUSIVE - Advanced web-based trading platform with live streaming quotes SMC PRIVILEGE - Software-based trading platform for active traders. SMC Mobitrade - state-of-art mobile trading application.

Clients opting for above mentioned products get facility to invest in IPOs & Mutual Fund schemes at no extra cost

Our edge

Convenience of integrating the Bank, Trading and Demat accounts with attractive brokerage options Designed for better speed for instant order & trade confirmation Lifetime free AMC option User friendly platforms 24 X 7 online back office access Pan-India presence Dedicated customer care Excellent research & advisory support A range of trading options

Investment Banking
Overview
SMC Capitals Limited is the Investment Banking arm of SMC group and is a SEBI registered Category I Merchant Banker with strong management team; financial sponsors and corporate partners to help corporate clients and HNIs achieve their financial and strategic goals. We offer a wide spectrum of investment banking services covering Corporate Advisory, Public Issues Management, Capital Restructuring, Private Equity and Debt Syndication, Merger & Acquisition Advisory, Valuation Services and ESOP. SMC Capitals is associated with London-based ICON Capital. ICON is

authorized and regulated by the Financial Services Authority (FSA), UK and is a member of the London Stock Exchange (LSE) which helps companies to raise money from foreign markets by issuing ADR, GDR and IDR. ICON is also an approved broker for the AIM segment of the LSE.

Our offerings
SMC capitals offers a wide spectrum of services covering:

Corporate Advisory Public Issue Management Capital Restructuring Private Equity and Debt Syndication Buybacks

CHAPTER-4 ANALYSIS AND INTERPRETATION

RANDOM PORTFOLIO DEFENSIVE PORTFOLIO

SR NO. 1 2 3 4 5 6 7 8 9 10

SCRIPT ACC CIPLA DR REDDY GRASIM HDFC BANK ITC RANBUXY HERO HONDA HDFC GLAXO

BETA 0.72 0.78 0.69 0.76 0.76 0.81 0.69 0.8 0.82 0.61

PRICE ON 2-01-2010 530.45 440.00 963.00 1375.3 713.45 140.10 444.35 846.10 1191.3 1111.6

Wi 9.68 10.48 9.27 10.22 10.22 10.89 9.27 10.75 11.02 8.20

Total Portfolio Investment = 10,00,000 Rs.

Total Portfolio Beta = Wi * BETA =6.97 +8.18+6.40+7.76+7.76 +8.82+6.40+8.60+9.04+5.00 = 74.93 ~ 75

RETURN ON INDIVIDUAL SCRIPTS 1ST MONTH


SR NO. 1 2 3 4 5 6 7 8 9 10 SCRIPT ACC CIPLA DR REDDY GRASIM HDFC BANK ITC RANBUXY HERO HONDA HDFC GLAXO BETA 0.72 0.78 0.69 0.76 0.76 0.81 0.69 0.80 0.82 0.61 2-01-2010 530.45 440.00 963.00 1375.30 713.45 140.10 444.35 846.10 1191.30 1111.60 31-01-10 574.20 442.25 1121.25 1454.25 762.45 154.80 399.40 857.20 1339.70 1282.80 RETURN IN % 8.25 0.51 16.43 5.74 6.87 10.49 -10.12 1.31 12.46 15.40

2ND MONTH
SR NO. 1 2 3 4 5 6 7 8 9 10 SCRIPT ACC CIPLA DR REDDY GRASIM HDFC BANK ITC RANBUXY HERO HONDA HDFC GLAXO BETA 0.72 0.78 0.69 0.76 0.76 0.81 0.69 0.80 0.82 0.61 2-01-10 530.45 440.00 963.00 1375.30 713.45 140.10 444.35 846.10 1191.30 1111.60 28-02-10 626.30 552.15 1306.10 1742.60 737.15 172.45 429.50 889.30 1365.65 1315.55 RETURN IN % 18.07 25.49 35.63 26.71 3.32 23.09 -3.34 5.11 14.64 18.35

RETURN IN DEFENSIVE PORT FOLIO


TOTAL PORTFOLIO INVESTMENT VALUE OF PORTFOLIO AS ON 28-02-2006 = 10,00,000 = 1166628.41

TOTAL RETURN ON PORTFOLIO = 1166628.41 - 1000000 = 166628.41

TOTAL RETURN IN % TERM = 16.66 %

MODRATE PORTFOLIO
SR NO. 1 2 3 4 5 6 7 8 9 10 PNB SCRIPT BHARTI GUJARAT AMBUJA BAJAJ AUTO HLL HINDALCO LT MTNL ZEE BHEL 1.00 1.00 1389.90 472.00 10.83 10.83 BETA 0.99 0.86 0.85 0.88 1.00 0.86 0.89 0.90 PRICE ON 2-01-2010 340.05 79.30 450.05 195.10 146.20 1825.65 142.15 157.90 Wi 10.73 9.32 9.21 9.53 10.83 9.32 9.64 9.75

Total Portfolio Investment = 10,00,000/- Rs.

Total Portfolio Beta = Wi * BETA = 10.62 + 8.01+7.83+8.39+10.83+ 8.01+8.58+8.78+10.83+10.83 = 92.72 ~ 93

RETURN ON INDIVIDUAL SCRIPTS 1ST MONTH


SR NO. 1 2 3 4 5 6 7 8 9 10 SCRIPT BHARTI GUJARAT AMBUJA BAJAJ AUTO HLL HINDALCO LT MTNL ZEE BHEL PNB BETA 0.99 0.86 0.85 0.88 1.00 0.86 0.89 0.90 1.00 1.00 2-01-2010 340.05 79.30 450.05 195.10 146.20 1825.65 142.15 157.90 1389.90 472.00 31-01-10 357.25 88.55 513.25 195.25 164.80 2172.10 141.70 164.70 1795.60 465.35 RETURN IN % 5.06% 11.66% 14.04% 0.08% 12.72% 18.98% -0.32% 4.31% 29.19% -1.41%

2ND MONTH

SR NO. 1 2 3 4 5 6 7 8 9 10

SCRIPT BHARTI GUJARAT AMBUJA BAJAJ AUTO HLL HINDALCO LT MTNL ZEE BHEL PNB

BETA 0.99 0.86 0.85 0.88 1.00 0.86 0.89 0.90 1.00 1.00

2-01-2010 340.05 79.30 450.05 195.10 146.20 1825.65 142.15 157.90 1389.90 472.00 28-02-10 361.05 88.30 550.10 243.70 153.35 2396.95 142.65 196.60 2027.00 442.10

RETURN IN % 6.18% 11.35% 22.23% 24.91% 4.89% 31.29% 0.35% 24.51% 45.84% -6.33%

RETURN IN MODRATE PORT FOLIO


TOTAL PORTFOLIO INVESTMENT VALUE OF PORTFOLIO AS ON 28-02-2006 = 10,00,000/- Rs.. = 1162912.70/- Rs.

TOTAL RETURN ON PORTFOLIO


= 1162912.70 Rs. - 1000000 Rs. = 162912.70 Rs.

TOTAL RETURN IN % TERM = 16.29 %

AGGRESSIVE PORTFOLIO
SR NO. 1 2 3 4 5 6 7 8 9 10 SCRIPT ICICI BANK LTD INFOSYS ONGC RELIANCE SATYAM SBIN TATA POWER TATA MOTER TATA STEEL WIPRO BETA 1.09 1.07 1.02 1.05 1.23 1.09 1.11 1.19 1.13 1.33 PRICE ON 2-01-2010 597.00 2979.35 1191.65 441.05 731.55 904.90 434.20 639.55 379.00 461.70 Wi 9.64 9.46 9.02 9.28 10.88 9.64 9.81 10.52 9.99 11.76

Total Portfolio Investment = 10,00,000/- Rs.

Total Portfolio Beta = Wi * BETA


=10.50+10.12+9.20+9.75+13.38+ 10.50+10.89+12.52+11.29+15.64 = 113.80 ~ 114

RETURN ON INDIVIDUAL SCRIPTS 1ST MONTH


SR NO. 1 2 3 4 5 6 7 8 9 10 SCRIPT ICICI BANK LTD INFOSYS ONGC RELIANCE SATYAM SBIN TATA POWER TATA MOTER TATA STEEL WIPRO BETA 1.09 1.07 1.02 1.05 1.23 1.09 1.11 1.19 1.13 1.33 2-01-2010 597.00 2979.35 1191.65 441.05 731.55 904.90 434.20 639.55 379.00 461.70 31-01-10 609.25 2880.30 1237.30 480.15 746.75 886.35 471.80 708.45 404.45 529.70 RETURN IN % 2.05 -3.32 3.83 8.87 2.08 -2.05 8.66 10.77 6.72 14.73

2ND MONTH
SR NO. 1 2 3 4 5 6 7 8 9 10 SCRIPT ICICI BANK LTD INFOSYS ONGC RELIANCE SATYAM SBIN TATA POWER TATA MOTER TATA STEEL WIPRO BETA 1.09 1.07 1.02 1.05 1.23 1.09 1.11 1.19 1.13 1.33 2-01-2010 597.00 2979.35 1191.65 441.05 731.55 904.90 434.20 639.55 379.00 461.70 28-02-10 615.25 2828.95 1136.40 500.55 769.65 877.50 511.20 816.20 431.00 520.45 RETURN IN % 3.06 -5.05 -4.64 13.49 5.21 -3.03 17.73 27.62 13.72 12.72

RETURN IN AGGRESSIVE PORT FOLIO


TOTAL PORTFOLIO INVESTMENT VALUE OF PORTFOLIO AS ON 28-02-2006 = 10,00,000/- Rs. =10,84,397.28/- Rs.

TOTAL RETURN ON PORTFOLIO


= 1084397.28 Rs - 1000000Rs = 84397.28 Rs.

TOTAL RETURN IN % TERM = 8.44 %

Interpretation of Random Portfolio


As in the theoretical way we have scene that the Beta shows the movement or change in the price of script vis--vis index. And a Beta >1 is more riskier and hence should give more return as compared to the script having Beta < 1. as the person is taking more risk then he should get more return. But in our case we have scene that Moderate portfolio having Beta < 1 has given more return as compared to Aggressive Portfolio.

So we can easily say that the investment in equity market is subject to market risk and any one having long-term investment horizon should only enter into equity market. This analysis that has been carried out was only for a period of two month there are chances that in the long run aggressive portfolio would outperform the other portfolio

SECTOR PORTFOLIO

We are considering Telecom Sector as our Sector Portfolio.

Industry analysis Telecom sector Objectives and targets of the New Telecom Policy 2005 The objectives of the NTP 2005 are as under:

Access to telecommunications is of utmost importance for achievement of time The country's social and economic goals. Availability of affordable and effective communications for the citizens is at the core of the vision and goal of the telecom policy. Strive to provide a balance between the provision of universal service to all uncovered areas, including the rural areas, and the provision of high-level services capable of meeting the needs of the country's economy;

Encourage development of telecommunication facilities in remote, hilly and tribal areas of the country; Create a modern and efficient telecommunications infrastructure taking into account the convergence of IT, media, telecom and consumer electronics and thereby propel India into becoming an IT superpower;

Convert PCO's, wherever justified, into Public Teleinfo centres having multimedia capability like ISDN services, remote database access, government and community information systems etc.

Transform in a time bound manner, the telecommunications sector to a greater competitive environment in both urban and rural areas providing equal opportunities and level playing field for all players;

Strengthen research and development efforts in the country and provide an impetus to build world-class manufacturing capabilities. Achieve efficiency and transparency in spectrum management. Protect defence and security interests of the country.

Service Provider 1 BSNL All India 2 MTNL 3 Bharti Telesonic Ltd

Area of Operation (Except Delhi & Mumbai) Delhi & Mumbai AP, MP, Delhi, Haryana, Tamil Nadu, Chennai, Karnataka, Kerala, Gujarat, Punjab, Maharashtra, Mumbai, UP(E), including Uttaranchal, West Bengal and Kolkata Maharastra, Mumbai AP, TN, Chennai, Karnataka, Gujarat, Delhi, Bihar, Orissa, Rajasthan, Punjab, Haryana, Himachal Pradesh, Kerala, Madhya Pradesh, U.P. (E), U.P (W) including Uttaranchal, West Bengal and Kolkata Punjab Rajasthan AP, Bihar, Delhi, Gujarat, Haryana, HP, Karnataka, Kerala, MP, Maharashtra, Mumbai, Orissa, Punjab, Rajasthan, Tamil Nadu, Chennai, UP(E), West Bengal, Kolkata

4 Tata Teleservices (Maharashtra) Ltd 5 Tata Teleservices Ltd

6 HFCL Infotel Ltd 7 Shyam Telelink Ltd 8 Reliance Infocomm.Ltd.

Subscribers Base The Mobile (GSM and CDMA) Industry has reached the 65.07 million subscribers mark (GSM 50.86 million & CDMA 14.21 million) for the quarter ending 30th September 2009. Addition in Subscribers Base The subscribers base stood at 65.07 million as against 57.37 million for the quarter ending 30.9.2009. Around 7.70 million subscribers were added in this quarter. Growth Rate The growth rate for this quarter is 13.42% (13.16% in GSM and 14.37% in CDMA) as against 9.86% (9.44% in GSM and 12.43% in CDMA) for the quarter ending June 2005. M/s Bharti remains the largest mobile operator followed by M/s Reliance and M/s BSNL.

Company wise Market Share:

a) The Subscriber Base of different Mobile operators is given in Table 2.1. The top five Mobile operators on the basis of market share are as under: Cellular Group Subscribers Bharti Reliance BSNL Hutchison IDEA 14.07 12.99 12.38 9.71 5.94 Market Share 21.62 19.96 19.03 14.92 9.13 Technology Used GSM GSM & CDMA GSM & CDMA GSM GSM

Change in Market Structure M/s Bharti, M/s Reliance and BSNL/MTNL has licenses to offer mobile services in all 23 service area. The largest mobile operator, M/s Bharti is offering services in all the 23 service areas. M/s Reliance is presently offering services in all service areas except J&K circle. BSNL is also offering services in all its 21 circles (Except Delhi & Mumbai). M/s Tata Teleservices is offering services in all its licensed 20 service areas. M/s Tata Teleservices does not have license to offer access services in J&K, Assam & North East. Market share of all company Subscriber Base Bharat Sanchar Nigam Ltd. Mahanagar Telephone Nigam Ltd. Sify Ltd. Videsh Sanchar Nigam Ltd. Reliance Communications Infrastructure Ltd. Data Infosys others Bharti Televentures Ltd.(Bharti Infotel) 37% 20% 14% 8% 5% 4% 3%

Company analysis Telecom sector 1. Bharti Tele-Ventures Ltd.


Company at glance Industry: - Telecommunications 52 Week High: - 377.00 52 Week Low: - 195.80 Volume: - 59847 Face Value: - 10.00 P/E Ratio: - 57.24 EPS: - 6.29

FINANCIAL PERFORMANCE For the year Operating Income Net Profit Net Worth No. of Shares (in crore) Mar-02 62.97 62.97 4,816.27 Mar-03 71.35 0.22 4,819.75 Mar-04 62.98 0.37 4,823.55 Mar-05 8,142.44 1,210.67 4,134.07

185.34

185.34

185.34

185.34

Adjusted EPS (Rs)

6.29

Book value per Share (Rs)

25.99

26.01

26.03

24.12

Dvdnd per Share (Rs)

Net Profit Margin (%) Current Ratio Lt Debt Equity

0.19

0.58

0.58

14.83

74.86 0

668.08 0

233.91 0.1

0.51 0.98

2. Tata Telecom Ltd.


Company at glance Industry: 52 Week High: 52 Week Low: P/E Ratio: EPS: Volume: Face Value: FINANCIAL PERFOMANCE For the year Operating Income Net Profit Net Worth No. of Shares (in crore) Adjusted EPS (Rs) Book value per Share (Rs) Dvdnd per Share(Rs) Net Profit Margin (%) Current Ratio Lt Debt Equity 02-Mar 228.2 15.68 70.52 1.42 12.13 65.44 2 6.06 1.97 0.04 03-Mar 285.5 18.56 85.06 1.42 13.06 75.66 2.5 5.78 1.88 0.03 04-Mar 394.5 32.67 110.5 1.42 23.29 93.55 4.5 8.24 1.76 0.02 05-Mar 323.8 24.92 128.1 1.42 13.73 105.9 4.5 7.65 1.55 0.01 Telecom 531.00 289.00 30.15 13.73 878 10.00

3. Videsh Sanchar Nigam Ltd. Industry: 52 Week High: 52 Week Low: P/E Ratio: EPS: Volume: Face Value: Telecom 444.60 161.00 31.18 12.21 2365926 10.00

FIANCIAL PERFOMANCE For the year Operating Income Net Profit Net Worth No. of Shares (in crore) Adjusted EPS (Rs) Book value per Share (Rs) Dvdnd per Share(Rs) Net Profit Margin (%) 02-Mar 6,508.09 1,407.42 4,834.54 28.5 46.05 176.98 87.5 20.08 03-Mar 4,538.55 780.07 5,341.32 28.5 29.62 194.75 8.5 16.12 04-Mar 3,163.54 377.66 4,961.00 28.5 13.12 181.3 4.5 11.24 05-Mar 3,303.04 756.37 5,522.06 28.5 12.21 200.98 6 22.19

Current Ratio Lt Debt Equity

2.45 0

2.67 0

1.59 0

1.84 0

4.Mahanagar Telephone Nigam Ltd.

Industry: 52 Week High: 52 Week Low: P/E Ratio: EPS: Volume: Face Value:

Telecom 154.50 108.00 10.79 12.86 76690 10.00

FIANCIAL PERFOMANCE

For the year Operating Income Net Profit Net Worth No. of Shares (in crore) Adjusted EPS (Rs) Book value per Share (Rs) Dvdnd per Share(Rs) Net Profit Margin (%) Current Ratio Lt Debt Equity

02-Mar 6,145.07 1,300.68 7,795.60 63 20.3 141.9 4.5 20.56 1.67 0.29

03-Mar 5,807.26 877.16 8,250.63 63 14.05 150.75 4.5 14.61 1.27 0

04-Mar 6,370.40 1,234.60 8,947.49 63 18.24 163.93 4.5 18.79 1.29 0

05-Mar 5,593.25 948.43 9,492.66 63 12.86 173.71 4.5 16.1 1.29 0

RATIO ANLYSIS PER SHARE RATIO Reported Cash EPS Ratio


Bharti Tele Mar-01 Mar-02 Mar-03 Mar-04 Mar-05 Average 0.4 0.04 0.04 0.03 12.9 13.41 2.682 Tata tele 13.49 14.75 16.63 31.22 24.27 100.36 20.072 VSNL 63.05 53.96 32.53 19.29 35.11 203.94 40.788 MTNL 36.93 33.61 27.69 28.23 24.39 150.85 30.17

Operatig Profit Per Share


Bharti Tele Mar-01 Mar-02 Mar-03 Mar-04 Mar-05 Average 2.96 0.07 0.2 0.14 16.17 19.54 3.908 Tata tele -1.62 4.44 2.93 46.74 30.98 83.47 16.694 VSNL 68.78 57.63 41.42 18.62 27.85 214.3 42.86 MTNL 41.26 39.11 31.14 31.62 22.31 165.44 33.088

Book Value per Share


Bharti Tele Tata tele VSNL MTNL 152.67 39.26 231.18 132.51 25.99 65.44 176.98 141.9 26.01 75.66 194.75 150.75 26.03 93.55 181.3 163.93 24.13 105.95 200.98 173.71 254.83 379.86 985.19 762.8 50.966 75.972 197.038 152.56

Mar-01 Mar-02 Mar-03 Mar-04 Mar-05 Average

Net Operating Income Per Share


Bharti Tele Mar-01 Mar-02 Mar-03 Mar-04 Mar-05 Average 5.25 0.33 0.38 0.33 43.93 50.22 10.044 Tata tele 138.64 160.32 200.52 277.15 227.49 1004.12 200.824 VSNL 138.64 160.32 200.52 277.15 115.9 892.53 178.506 MTNL 91.87 97.54 92.18 101.12 88.78 471.49 94.298

Free Reserve per Share


Bharti Tele Tata tele VSNL 142.67 28.97 15.99 39.54 16.01 49.75 16.03 67.64 12.31 80.01 203.01 265.91 40.602 53.182 MTNL 213.88 159.63 177.41 164.07 183.76 898.75 179.75 107.18 113.74 120.96 132.02 140.68 614.58 122.916

Mar-01 Mar-02 Mar-03 Mar-04 Mar-05 Average

Per Share Ratios


250 200 150 100 50 0 Bharti Tata tele VSNL Tele Company MTNL Average Rate Reported Cash EPS Ratio Operatig Profit Per Share Book Value per Share Net Operating Income Per Share Free Reserve per Share

Profitability Ratio Operatig Margin in %


Mar-01 Mar-02 Mar-03 Mar-04 Mar-05 Average Bharti Tele Tata tele 56.48 23.45 54.13 43.21 36.81 214.08 42.816 VSNL -1.16 2.76 1.46 16.86 13.61 33.53 6.706 26.86 25.23 26.01 16.77 24.03 118.9 23.78 MTNL 44.19 40.09 33.78 31.27 25.13 174.46 34.892

Gross Profit margin in %


Mar-01 Mar-02 Mar-03 Mar-04 Mar-05 Average Bharti Tele Tata tele 50.29 18.33 49.08 37.06 24.29 179.05 35.81 VSNL -3.88 0.75 -0.32 13.88 10.33 20.76 4.152 25.27 23.23 22.77 11.33 16.64 99.24 19.848 MTNL 31.61 26.8 18.85 22.73 14.62 114.61 22.922

Net Profit Margin in %


Bharti Tele Mar-01 Mar-02 Mar-03 Mar-04 Mar-05 Average 0.66 0.19 0.3 0.58 14.83 16.56 3.312 Tata tele 5.87 6.06 5.78 8.24 7.65 33.6 6.72 VSNL 21.8 16.12 16.12 11.24 22.19 87.47 17.494 MTNL 25.8 20.56 14.61 18.79 16.1 95.86 19.172

Return on long term fund in %


Bharti Tele Mar-01 Mar-02 Mar-03 Mar-04 Mar-05 Average 1.83 0.18 0.65 0.42 20.41 23.49 4.698 Tata tele 26.1 32.25 30.63 41.63 22.96 153.57 30.714 VSNL 34.21 23.99 30.63 10.71 11.43 110.97 22.194 MTNL 18.49 15.81 13.57 15.95 10.16 73.98 14.796

Profitability Ratio
Average Return 50 40 30 20 10 0 Bharti Tele Tata VSNL MTNL tele Company Operatig Margin in % Gross Profit margin in % Net Profit Margin in % Return on long term fund in %

Portfolio in Telecom Sector


Average return Portfolio Wi 143.87 79663.1 415.04 229814 722.26 399927 524.81 290596 1805.98 1000000

Bharti Tele Tata Tele VSNL MTNL

7.96631 22.9814 39.9927 29.0596 100

Total Portfolio = 10,00,000 Rs.

Price as on particular date


Company Bharti Tele TTML VSNL MTNL 02-01-06 340.05 27.8 381.15 142.15 28-02-06 361.05 24.75 364.95 142.65

Total Return on investment = Total return total investment


= 963730.3 1000000 = -36269.7

Bharti Tele TTML VSNL MTNL

6.175562417 -10.97122302 -4.250295159 0.351741119

Total return on investment ( in %) = - 3.62 %

Interpretation of Sector Portfolio


As we can see that sector specific portfolio has perform negatively during the period of the report. That is due to the fact that there is a systematic risk involve with the portfolio as lack of diversification. If we look at the performance of the Sensex during this period than we will find that Sensex has perform better than the sector portfolio. It is mainly doe to diversification of risk as Sensex has the 30 script from different sectors, so any ups and downs in a sectors performance will not effect the overall Sensex that badly that in the case of sector portfolio. We can see in the plotted graph that all the four script in the sector portfolio are following a same kind of trend in the given one month of the study. It is due to the fact that they all belong to the same sector and they all face same systematic risk as other in the sector. So the performance of the scripts rightly indicates the need of diversification to remove the systematic risk from the portfolio. As its gets highly risky investment, such portfolio are very rarely been used by individual in the general scenario.

CHAPTER-5 Findings and Suggestions

FINDING OF THE REPORT

Findings of the report gives the fruit of the all the analysis done on the research of measuring and comparing performance of the portfolio with the market portfolio.

Random portfolio

After understanding the various concepts about what are the investments option and what are the risks associated with the various investment avenues. And also about how one can use Derivative to be specific Future for the purpose of Hedging and Speculation.

But it is advisable to use the direct equity investment only if the investors have adequate knowledge about selection of stocks. There task does not ends with the selection of script but they are also required to pay close attention to the various happening in the economy that have direct or indirect effect on stock market as we have learn that the price of the script is affected by two factor, one is company specific news and the other is economy specific news so any investor investing in the equity directly has to keep the close track of the economy as well as the company in which they invest to look out for any new development that take place

As in the theoretical way we have scene that the Beta shows the movement or change in the price of script vis--vis index. And a Beta >1 is more riskier and hence should give more return as compared to the script having Beta < 1. as the person is taking more risk then he should get more return. But in our case we have scene that Moderate portfolio having Beta < 1 has given more return as compared to Aggressive Portfolio.

So we can easily say that the investment in equity market is subject to market risk and any one having long-term investment horizon should only enter into equity market. This analysis that has been carried out was only for a period of two month there are chances that in the long run aggressive portfolio would outperform the other portfolio.

And we have also scene the Derivative- Future how one can use it for the purpose of speculation and hedging. But hedging is only for the removal of unnecessary risk or exposure one should not go for hedging for earning excess return.

So if one does not have enough knowledge, expertise & analytical capabilities then one should avoid going for direct equity investment as the chances of loss increases. And the other very important aspect is the regular monitoring of the portfolio and reviewing is also an important aspect that one needs to pay close attention to.

Sector portfolio Sector portfolio has given negative return in the month of the study as there is systemic risk as very high in the sector portfolio because of non diversification. This portfolio has given -3.62% returns on the one month performance so it is advisable for the investor not to go for such a high risky investment options. All the individual scripts and the portfolio showing very steady chart, there is very little movement in the performance chart. There is a very high Beta of majority of the scripts in the portfolio edging more than 2 in most of the script. Only one script having a Beta under 1 but it is too low to give a good return on the investment. Because of that the overall portfolio Beta is also sizing more than 2. In the sector portfolio the volatility of the majority of script is under 10. Thats shows less risk with the portfolio and also less fluctuation means less chance of return.

RECOMMENDATION
From the above given findings and the conclusions of the study done by me, here are the list of recommendations that comes out of the study. Form the study it is also proven that even in short run sector portfolio is highly risky option for investment. Here in the study it is providing negative return. That shows that investors who want to have safe return must think twice before selecting sector portfolio for a long term investment.

Though random portfolio is having scripts with highest return and volatility, but for a long term prospect is becomes hard to fetch good return out of it as it is hard to take use of high volatility.

There is a requirement for frequent portfolio checking to maintain the higher return and to make use of high volatility.

BIBLIOGRAPHY

Bibliography Books
1. Derivatives Module of NSE ( NCFM ) 2. Securities analysis and Portfolio Management -B.K. Bhalla

Web Bibliography
1. www.Dbscholamandalam.com 2. www.nseindia.com 3. www.bseindia.com 4. www.derivativesindia.com 5. www.moneycontrol.com 6. www.icicidirect.com

Others
1. Magazines Business World

2. News Papers Economic Times of India Times of India