A Project Report on A STUDY OF EQUITY ON CAPITAL MARKETS at indian Infoline Benglore

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 investor’s 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.

Babasabaptilfreepptmba.com 1


INTRODUCTION


A STUDY OF EQUITY ON CAPITAL MARKETS INDIAN FINANCIAL SYSTEM

The financial system or financial sector of any country consists of specialized and non-

specialized 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.


A STUDY OF EQUITY ON CAPITAL MARKETS 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.


A STUDY OF EQUITY ON CAPITAL MARKETS 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.



Financial System


Financial Institutions Financial

Services

Financial

Markets

Financial

Instruments

Regulatory Inter-Mediaries

Non-inter Mediaries

Others

UnorganizedOrganized

Primary Secondary

Capital

Markets

Money

Markets

Equity

Markets

Debt

MarketsDerivatives

Markets

Primary Secondary

Short TermMedium

Term

Long

Term

A STUDY OF EQUITY ON CAPITAL MARKETS 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

economy’s 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 intermediary’s 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.


A STUDY OF EQUITY ON CAPITAL MARKETS 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



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

Equity Market

Money Market

Capital Market

Primary Market

Secondary Market

Cash Market

Spot Market


Nature of Claim

Maturity of Claim

Seasoning of Claim

Timing of Delivery

A STUDY OF EQUITY ON CAPITAL MARKETS 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 SERVICESMerchant 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

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

than ever


A STUDY OF EQUITY ON CAPITAL MARKETS Capital market reforms in India

India’s 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.


A STUDY OF EQUITY ON CAPITAL MARKETS 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) depositories and participants

(ii) custodians,

(iii) debenture trustees, and trust deeds,

(iv) FIIs, (insider trading,

(v) merchant bankers,

(vi) mutual funds,

(vii) portfolio managers, and investment advisers,

(viii) stock brokers and sub-brokers and underwriters.



RESEARCH

DESIGN


A STUDY OF EQUITY ON CAPITAL MARKETS 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.


http://www.indiainfoline/

http://www.moneypore.com/

http://www.equitymaster.com/

http://www.moneycontrol.com/

http://www.nseindia.com/

http://www.bseindia.com/

A STUDY OF EQUITY ON CAPITAL MARKETS 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 problemThe 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 investor’s

loose their money , Sometimes people don’t 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.



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 collectionQuestionnaire, interview schedules were used.

Questionnaire-open ended and close-ended Questionnaire was used.

Interview schedule- unstructured method of interview is followed.

Analysis and interpretationThe 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, couldn’t 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.



PROFILE OF THE

COMPANY


A STUDY OF EQUITY ON CAPITAL MARKETS INDIA INFOLINE GROUP

INDIA INFOLINE GROUPThe 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).



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 investor’s 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


A STUDY OF EQUITY ON CAPITAL MARKETS 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.

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 infoline’s 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 Company’s commodities business

provides a contra-cyclical alternative to equities broking. The Company was among the first

to offer the facility of commodities trading in India’s 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.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 that’s 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 (IPO’s) online without going through the

hassles of filling ANY application form/ paperwork.

Stay connected to the market


A STUDY OF EQUITY ON CAPITAL MARKETS 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:

• Market on the move.

• Best of the lot.

• VAS (Value Added Service )

INSURANCE.

An entry into this segment helped complete the client’s 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 Company’s 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 world-

leading 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


A STUDY OF EQUITY ON CAPITAL MARKETS 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.

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.


A STUDY OF EQUITY ON CAPITAL MARKETS 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.

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 EXCHANGEBombay 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


A STUDY OF EQUITY ON CAPITAL MARKETS Managing Director of the Exchange. The Board is inclusive and is designed to benefit

from the participation of market intermediaries.

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 EXCHANGEThe 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:-


A STUDY OF EQUITY ON CAPITAL MARKETS 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:

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 ExchangeBangalore 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 co-ordinates with the companies, members and investors in resolving the

problems. The Center also offers counseling services.



The Investor Services Committee comprising of Public Representatives, members, Vice-

President 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 INDIAThe 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.



ANALYSIS AND

INTERPRETATION


A STUDY OF EQUITY ON CAPITAL MARKETS Objective 1: FUNDAMENTAL ANALYSIS

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


A STUDY OF EQUITY ON CAPITAL MARKETS 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.

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.


A STUDY OF EQUITY ON CAPITAL MARKETS 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

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 scrip’s. 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


A STUDY OF EQUITY ON CAPITAL MARKETS 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 investor’s 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

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.


A STUDY OF EQUITY ON CAPITAL MARKETS 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

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 company’s 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


A STUDY OF EQUITY ON CAPITAL MARKETS 2 Leadership

3 Analytical competences

4 Industries

5 Judgments

6 Ability to get things done

Objective 2: To Study the features of investment instruments

INVESTMENT INSTRUMENTSEquity 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.


A STUDY OF EQUITY ON CAPITAL MARKETS Government securities

Government of India relief bonds

Government agency securities

Public sector unit bonds

Debentures of private sector companies

Preference shares

Money Market InstrumentsDebt 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

Repose

Mutual FundsA 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 InsuranceLife 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.


A STUDY OF EQUITY ON CAPITAL MARKETS 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 EstateFor 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

Time-share in holiday resort

Precious objectsPrecious 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 derivativesA 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


A STUDY OF EQUITY ON CAPITAL MARKETS INVESTMENT ATTRIBUTEFor 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

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


A STUDY OF EQUITY ON CAPITAL MARKETS 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 investor’s investment but only if post tax returns

are higher than options.

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

appreciation

Risk Marketability

liquidity

Tax shelter Convenience

EQUITY

shares

Low High High Fairly high No tax on

dividends

High

Non High Negligible Low high Average Nil High


A STUDY OF EQUITY ON CAPITAL MARKETS convertible

Debentures

EQUITY

schemes

Low High High High No tax on

dividends

Very high

Debt

schemes

High Low Low High No tax on

dividends

Very high

Bank

deposits

Moderate Nil Negligible High Section 80L

benefits

Very high

Public

provident

Fund

Nil High Nil Average Section 88

benefits

Very high

Life

insurance

policies

Nil Moderate Nil Average Section 88

benefits

Very high

Residential

house

Moderate Moderate Negligible Low High Fair

Gold &

Silver

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


A STUDY OF EQUITY ON CAPITAL MARKETS mark in intra-day 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

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


A STUDY OF EQUITY ON CAPITAL MARKETS 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. India’s economic landscape has changed

liberalization in trade and investments.

Integration with global economy and reforms in areas of commerce, finance, tax have

redefined India’s 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.


A STUDY OF EQUITY ON CAPITAL MARKETS 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

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 group’s flagship company, Bajaj Auto, is ranked as the world’s 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


A STUDY OF EQUITY ON CAPITAL MARKETS 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 India’s

most distinguished business leaders and internationally respected for his business acumen

and entrepreneurial spirit.

EQUITY SHARE PERFORMANCE OF BAJAJ AUTO FINANCE LTD FOR THE MONTH OF MARCH(OPENING AND CLOSING PRICES) SERIES

DATE OPEN X-X* XX* CLOSE Y-Y* YY* R(XX*)(YY*)

EQ

3-Mar-08 430 70.21 4929.44 398.95 49.59 2459.17 3481.71

EQ 4-Mar-08 397 37.21 1384.58 386.95 37.26 1388.31 1386.44EQ 5-Mar-08 378.5 18.71 350.06 389.35 39.66 1572.92 720.62EQ 7-Mar-08 390 30.21 912.63 369.45 19.76 390.46 596.95EQ 10-Mar-08350.5 9.29 86.3 369.5 19.81 392.44 184.03EQ 11-Mar-08383.3 23.51 552.72 368.65 18.96 359.48 445.75EQ 12-Mar-08380 20.21 408.44 360 10.31 106.3 208.37EQ 13-Mar-08368.5 8.71 75.86 359.15 9.46 89.49 82.4EQ 14-Mar-08395 35.21 1239.7 355.75 6.06 36.72 213.37EQ 17-Mar-08344.8 14.99 224.7 329.85 -19.84 393.63 297.4EQ 18-Mar-08310.5 49.29 2429.5 342.7 -6.99 48.86 344.54EQ 19-Mar-08389.5 29.71 882.68 325.2 24.49 599.76 727.6


A STUDY OF EQUITY ON CAPITAL MARKETS EQ 25-Mar-08322 -37.79 1428.08 320.45 -29.24 854.98 1104.98EQ 26-Mar-08324 35.79 1280.92 317.05 -32.64 1065.37 1168.19EQ 27-Mar-08313 -46.79 2189.3 310.25 -39.44 1555.51 1845.38EQ 28-Mar-08313 -46.79 2189.3 311.7 -37.99 1443.24 1777.55EQ 31-Mar-08326.9 -32.89 1081.75 329.85 -19.84 393.63 652.54TOTAL 17Days 6116.5 21645.97 13150.27

Graph Showing the OPENING AND CLOSING PRICES OF

BAJAJ AUTO FINANCE LTD



ANALYSIS AND INTERPRETATION

Opening price

Mean=359.79

Standard deviation=35.68

Co-variance=9.92

Closing price

Mean=349.69


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)

SERIE

S DATE HIGH X-X* XX* LOW Y-Y* YY*

R(XX*)

(YY*)

EQ 3-Mar-08 430 61.73 3810.59 395 59.08 3490.44 3647

EQ 4-Mar-08 400 31.73 1006.79 367.5 31.58 997.29 1002.03

EQ 5-Mar-08 395 26.73 714.49 370 34.08 1161.45 910.96

EQ 7-Mar-08 390 21.73 472.19 352.3 16.38 268.3 355.94

EQ 10-Mar-08 380 11.73 137.59 335 0.92 0.85 10.79

EQ 11-Mar-08 383.3 15.03 225.9 365 29.08 845.65 437.07

EQ 12-Mar-08 398.95 30.68 941.26 352.5 16.58 274.89 508.67

EQ 13-Mar-08 375 6.73 45.29 355 19.08 364.05 128.41

EQ 14-Mar-08 395 26.73 714.49 346.25 10.33 106.71 276.12

EQ 17-Mar-08 347.5 20.77 431.39 305

-

30.92 956.05 642.21

EQ 18-Mar-08 350 18.27 333.79 310.5

-

25.42 646.18 464.42

EQ 19-Mar-08 390 21.73 472.19 321

-

14.92 222.61 324.21

EQ 25-Mar-08 328

-

40.27 1621.67 310.5

-

25.42 646.18 1023.66

EQ 26-Mar-08 332.8 -35.9 1288.81 310.8 - 631.01 901.81


A STUDY OF EQUITY ON CAPITAL MARKETS 25.12

EQ 27-Mar-08 317.5

-

50.77 2577.59 307.95

-

27.97 782.32 1420.04

EQ 28-Mar-08 313

-

55.27 3054.77 303.25

-

32.67 1067.33 1805.67

EQ 31-Mar-08 334.5

-

33.77 1140.41 303.1

-

32.82 1077.15 1108.33

TOTAL 17Days 6260.55 89723.72 5710.65 12541.17 11320.23

Graph Showing the High and Low Prices Of Bajaj Auto

FINANCE LTD




High price

Mean=368.27


Co-variance=19.73

Low price

Mean=335.92


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 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.


A STUDY OF EQUITY ON CAPITAL MARKETS 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.

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)



Series Date OPEN x-x* xx* CLOSE y-y* yy* R=(xx*)(yy*)EQ 3-Mar-08 2235 247.66 61335.47 2099.45 125.54 15760.29 31091.24EQ 4-Mar-08 2095 107.66 11590.67 2098.25 124.34 15460.43 13386.44EQ 5-Mar-08 2110 122.66 15045.47 2081.4 107.49 11554.1 13184.72EQ 7-Mar-08 2040 52.66 2773.07 2025.75 51.84 2687.38 2729.89EQ 10-Mar-08 1974.75 -12.59 158.51 1910.4 -63.91 4084.48 804.62EQ 11-Mar-08 1909 -78.34 6137.15 1992.7 18.79 353.06 1472EQ 12-Mar-08 2056 68.66 4714.2 2016.5 42.59 1813.9 2924.23EQ 13-Mar-08 1950 -37.34 1394.28 1882.8 -91.11 8301.03 3402.05EQ 14-Mar-08 1895 -92.34 8526.68 1878.95 94.96 9017.4 8768.61EQ 17-Mar-08 1878 -109.34 11955.24 1796.05 -177.86 31634.17 19447.21EQ 18-Mar-08 1800 187.34 35096.27 1823.8 -150.11 22530.01 28121.61EQ 19-Mar-08 1895 -92.34 8526.67 1848.2 -125.71 15803 11608.06EQ 25-Mar-08 1920 -67.34 4534.68 2012.55 38.64 1493.05 2602.02EQ 26-Mar-08 2000 12.66 160.28 1954.95 -18.96 359.48 240.03EQ 27-Mar-08 1935 -52.34 2739.48 1985.8 11.89 141.37 622.32EQ 28-Mar-08 2000 12.66 160.28 2092.45 118.54 14051.73 1560.72EQ 31-Mar-08 2092 104.66 10953.72 2056.55 82.64 6829.36 8649.1total 17 days 33784.75 185802.12 33556.6 161874.24 150619.97

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

Graph Showing The opening And closing Prices Of BHEL






Opening pricesMean = 1987.34

Standard deviation =104.54

Co-variance =5.26

Closing priceMean = 1973.91


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.


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.



EQUITY SHARE PERFORMANCE OF BHEL FOR THE MONTH OF

MARCH (HIGH AND LOW PRICES)

SERIES DATE HIGH X-X* XX* LOW Y-Y* YY*

R(XX*)

(YY*)

EQ 3-Mar-08 2235 201.17 40469.36 2082 163.87 26853.38 32965.73

EQ 4-Mar-08 2137.9 104.07 10830.56 2050 131.87 17389.69 13723.71

EQ 5-Mar-08 2139.9 106.07 11250.84 2060 141.87 20127.09 15048.15

EQ 7-Mar-08 2060 26.17 684.87 1950 31.87 1015.7 834.03

EQ 10-Mar-08 1990 -43.83 1921.07 1820 -98.13 9629.5 4301.03

EQ 11-Mar-08 2010 -23.83 567.87 1880 -38.13 1453.89 908.63

EQ 12-Mar-08 2114.7 80.87 6539.96 1976 57.87 3348.94 4679.95

EQ 13-Mar-08 1980 -53.83 2897.66 1855 -63.13 3985.39 3398.29

EQ 14-Mar-08 1920 -113.83 12957.27 1845 -73.13 5347.99 8324.39

EQ 17-Mar-08 1878 -155.83 24282.99 1765 -153.13 23448.79 23862.25

EQ 18-Mar-08 1918.7 -115.13 13254.92 1782 -136.13 18531.38 15672.64

EQ 19-Mar-08 1912 -121.83 14842.55 1835.05 -83.08 6902.29 10121.64

EQ 25-Mar-08 2040 6.17 38.07 1909 -9.13 83.36 56.33

EQ 26-Mar-08 2034 0.17 0.0289 1930.5 12.2 148.84 2.07

EQ 27-Mar-08 2010 -23.83 567.87 1910 -8.13 66.09 193.74

EQ 28-Mar-08 2103 69.17 4784.49 1975.5 57.37 3291.32 3968.28

EQ 31-Mar-08 2092 58.17 3383.75 1983.3 65.17 4247.13 3790.94

TOTAL 17 days 34575.2 146229.1 32608.35 145870.8 141851.8



Graph Showing the High and Low Prices Of BHEL


A STUDY OF EQUITY ON CAPITAL MARKETS ANALYSIS AND INTERPRETATION

High price

Mean =2033.83

Standard deviation =92.76

Co-variance=4.56

Low price

Mean =1918.13


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.

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 MONTH OF

MARCH(OPENING AND CLOSING)

Series Date OPEN x-x* xx* CLOSE y-y* yy* R=(xx*)(yy*)

EQ 3-Mar-08 1439.4 98.2 9643.2 1390.6 52.42 2747.9 5147.6

EQ 4-Mar-08 1400 58.8 3457.4 1357.3 19.17 367.49 1128.37

EQ 5-Mar-08 1389 47.8 2284.8 1336.4 -1.73 2.99 -82.69

EQ 7-Mar-08 1330 -11.2 125.44 1288.4 -51.83 2686.4 580.5

EQ 10-Mar-08 1250 -91.2 8317.4 1310.9 -27.28 744.2 2487.94

EQ 11-Mar-08 1310 -31.2 973.44 1332 -6.18 38.19 192.82

EQ 12-Mar-08 1370 28.8 829.44 1367.8 29.67 880.31 854.5

EQ 13-Mar-08 1355 13.8 190.44 1296.2 -41.98 1762.3 -579.32

EQ 14-Mar-08 1310 -31.2 973.44 1316 -25.13 631.52 784.06

EQ 17-Mar-08 1255.1 -86.19 7428.7 1238.5 -99.63 9926.1 8587.11

EQ 18-Mar-08 1100 -24.12 58177 1231.7 -106.4 11327 25670.92

EQ 19-Mar-08 1310 -31.2 973.44 1270.1 -68.08 4634.9 2124.1

EQ 25-Mar-08 1365 23.8 566.44 1417.9 79.17 6363.3 1898.53

EQ 26-Mar-08 1420 78.8 6209.4 1441.2 103.02 10613 8117.98

EQ 27-Mar-08 1401 59.8 3576 1435 96.82 9374.1 5789.84

EQ 28-Mar-08 1411 69.8 4872 1401.1 62.92 3958.9 4391.82

EQ 31-Mar-08 1385 43.8 1918.4 1320 -18.18 330.51 796.28

total 17 days 22800 110517 22748 66390 67890.36



Graph Showing The Opening And Closing Prices Of HDFC




Opening price

Mean=1341.2


Co-variance=6.01

Closing price

Mean=1338.13


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.





same direction.



EQUITY SHARE PERFOMANCE OF THE HDFC FOR THE

MONTH OF MARCH (HIGH AND LOW)

Series Date high x-x* xx* low y-y* yy* R=(xx*)(yy*)EQ 3-Mar-08 1439.4 63.9 4083.2 1365.4 75.35 5677.6 4814.87EQ 4-Mar-08 1400 24.5 600.25 1290 -0.05 0.0025 -1.22EQ 5-Mar-08 1389 13.5 182.25 1325.2 35.1 1232 473.85EQ 7-Mar-08 1349.7 -25.8 665.64 1253 -35.05 1372.7 955.89EQ 10-Mar-08 1328 -47.5 2256.3 1226 -64.05 4102.4 -3042.38EQ 11-Mar-08 1355 -20.5 420.25 1265 -25.05 627.5 -513.53EQ 12-Mar-08 1430 20.5 420.25 1347 56.95 3243.3 -1167.47EQ 13-Mar-08 1355 20 400 1280 -10.05 101 201EQ 14-Mar-08 1326.4 -49.1 2410.8 1250 -40.05 1604 1966.45EQ 17-Mar-08 1270 -105.5 11130 1201 -89.05 7929.9 9394.76EQ 18-Mar-08 1240 -135.5 18360 1100 -190.05 36119 25771.78EQ 19-Mar-08 1330 -45.5 2070.3 1246 -44.05 1940.4 2004.28EQ 25-Mar-08 1434 58.5 3422.3 1365 74.95 5617.5 4384.58EQ 26-Mar-08 1457 81.5 6642.3 1395.1 105.05 11036 8561.58EQ 27-Mar-08 1470 94.5 8930.3 1361 70.95 5033.9 6704.78EQ 28-Mar-08 1420 44.5 1980.3 1368.3 78.2 6115.2 3479.9EQ 31-Mar-08 1390 14.5 210.25 1293.1 3 9 43.5total 17 days 23384 21931 91761 71124.42

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



Graph Showing the High and Low Prices Of HDFC



Analysis and interpretation

High price

Mean=1375.5


Co-variance=4.47

Low price

Mean=1290.05


Co-variance=5.69

R=0.93


difference between the high and low price is =2.578.


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.


A STUDY OF EQUITY ON CAPITAL MARKETS 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 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 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 DATE OPEN X-X* XX* CLOSE Y-Y* YY* R(XX*)(YY*)

EQ 3-Mar-08 198.4 6.16 37.95 193 0.7 0.49 4.31

EQ 4-Mar-08 192 -0.24 0.06 184.85 -7.45 55.5 1.78

EQ 5-Mar-08 184.7 -7.54 56.85 194.25 1.95 3.8 -14.7

EQ 7-Mar-08 191 -1.24 1.54 190.75 -1.55 2.4 1.92

EQ 10-Mar-08 188 -4.24 17.98 190.6 -1.7 2.89 7.2

EQ 11-Mar-08 191.5 -0.74 0.55 192.4 0.1 0.01 -0.07

EQ 12-Mar-08 195 2.76 7.62 190.35 -1.95 3.8 -5.38

EQ 13-Mar-08 190 -2.24 5.01 185.45 -6.85 46.92 15.34

EQ 14-Mar-08 190 -2.24 5.01 191.95 -0.35 0.12 0.78

EQ 17-Mar-08 188 -4.24 17.98 185.9 -6.4 40.96 27.13

EQ 18-Mar-08 186 -6.24 38.94 183.25 -9.05 81.9 56.47

EQ 19-Mar-08 186.1 6.14 37.7 187.4 -4.9 24.01 -30.09

EQ 25-Mar-08 194 1.76 3.08 191.1 -1.2 1.44 -2.12

EQ 26-Mar-08 193.3 1.06 1.12 195.1 2.8 7.84 2.97

EQ 27-Mar-08 195 2.76 7.62 200.05 7.75 60.06 21.39

EQ 28-Mar-08 200.1 7.86 61.78 206.3 14 196 110.04

EQ 31-Mar-08 205 12.76 162.82 206.35 14.05 197.4 179.28

Total 17 days 3268.1 463.61 3269.05 722.12 376.25



Graph Showing the OPENING AND CLOSING Prices of ITC



A STUDY OF EQUITY ON CAPITAL MARKETS Opening price

Mean=192.2

Standard Deviation=5.22

Co-variance=2.71

Closing price

Mean=192.3


Co-variance=3.99

R=0.65







same direction.

EQUITY SHARE PERFORMANCE OF ITC FOR THE MONTH OF MARCH(HIGH AND


A STUDY OF EQUITY ON CAPITAL MARKETS LOW PRICES)

SERIES DATE HIGH X-X* XX* LOW Y-Y* YY* R(XX*)(YY*)

EQ 3-Mar-08 198.4 1.06 1.12 190 1.71 2.92 1.81

EQ 4-Mar-08 194.9 -1.9 3.61 182.5 -5.79 33.52 11.01

EQ 5-Mar-08 195.05 -1.75 3.06 182.3 -5.99 35.88 10.48

EQ 7-Mar-08 194.95 -1.85 3.42 187 -1.29 1.66 2.38

EQ 10-Mar-08 194.65 -2.15 4.62 186.5 -1.79 3.2 3.84

EQ 11-Mar-08 194.8 -2 4 189 0.71 0.5 -1.42

EQ 12-Mar-08 196.9 0.1 0.01 189.6 1.31 1.72 0.131

EQ 13-Mar-08 190 -6.8 46.24 181.6 -6.69 44.76 45.49

EQ 14-Mar-08 192.75 -4.05 16.4 186.1 -2.19 4.79 8.87

EQ 17-Mar-08 190.8 -6 36 183 -5.29 27.98 31.74

EQ 18-Mar-08 189.65 -7.15 51.12 180.6 -7.69 59.14 54.98

EQ 19-Mar-08 189.6 -7.2 51.84 185.5 2.79 7.78 -20.09

EQ 25-Mar-08 194.8 -2 4 189.75 1.46 2.13 -2.92

EQ 26-Mar-08 196.7 -0.1 0.01 190.1 1.81 3.27 -0.18

EQ 27-Mar-08 202 5.2 27.04 193.65 5.36 28.72 27.87

EQ 28-Mar-08 207.7 10.9 118.81 200.05 11.76 138.3 128.18

EQ 31-Mar-08 210.9 14.1 198.81 203.75 15.46 239.01 217.99

17 days 3345.55 570.11 3201 635.28 520.16


A STUDY OF EQUITY ON CAPITAL MARKETS Graph Showing the High and Low Prices Of ITC



A STUDY OF EQUITY ON CAPITAL MARKETS HIGH

MEAN=196.8

SD=5.79

CO-Variance=2.94

LOW

MEAN =188.29

SD=6.11

CO-Variance=3.24

R=0.86


difference between the high and low price is =8.51


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.


A STUDY OF EQUITY ON CAPITAL MARKETS 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)

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 India’s largest producer of iron ore and

of having the country’s 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 OPENX-X* XX* CLOSE Y-Y* YY* R(XX*)(YY*)

EQ 3-Mar 247 35.31 1246.09 230.8 23.4 547.56 826.254EQ 4-Mar-08 231.1 19.4 376.36 229.2 21.8 475.24 422.92EQ 5-Mar-08 228.9 17.2 295.84 232.55 25.15 632.5225 432.58EQ 7-Mar-08 229 17.3 299.29 236.9 29.5 870.25 510.35EQ 10-Mar-08 227 15.3 234.09 233.25 25.85 668.2225 395.505EQ 11-Mar-08 230 18.3 334.89 218.2 10.8 116.64 197.64EQ 12-Mar-08 239.95 28.25 798.06 194.2 -13.2 174.24 -372.9EQ 13-Mar-08 213.85 2.15 4.62 202.05 -5.35 28.6225 -11.5025

EQ 14-Mar-08 193.5 -18.2 331.24 189.05-18.35 336.7225 333.97

EQ 17-Mar-08 197.9 -13.8 190.44 189.05-18.35 336.7225 253.23

EQ 18-Mar-08 185 -26.7 712.89 189.75-17.65 311.5225 471.255

EQ 19-Mar-08 195 -16.7 278.89 197.55 -9.85 97.0225 164.495EQ 25-Mar-08 190 -21.7 470.89 199.95 -7.45 55.5025 161.665EQ 26-Mar-08 201 -10.7 114.49 200.1 -7.3 53.29 78.11EQ 27-Mar-08 197.1 -14.6 213.16 198.7 -8.7 75.69 127.02EQ 28-Mar-08 197.5 -14.2 201.64 197.5 -9.9 98.01 140.58

EQ 31-Mar-08 196.1 -15.6 243.36 184.75-22.65 513.0225 353.34

total 17 days 3599.9 6346.24 3525.96 5390.8 4484.51


A STUDY OF EQUITY ON CAPITAL MARKETS Graph Showing the OPENING AND CLOSING Prices of SAIL


Opening price

Mean=211.75


A STUDY OF EQUITY ON CAPITAL MARKETS Standard deviation=19.32

Co-variance=9.12

Closing price

Mean=207.4


Co-variance=8.55

R=0.69







same direction.



SERIES DATE HIGH X-X* XX* LOW Y-Y* YY* R(XX*)(YY*)EQ 3-Mar-08 250 32.15 1033.623 228.5 24.57 603.6849 789.9255EQ 4-Mar-08 237.5 19.65 386.1225 223.6 19.67 386.9089 386.5155EQ 5-Mar-08 234.9 17.05 290.7025 227.5 23.57 555.5449 401.8685EQ 7-Mar-08 235 17.15 294.1225 225 21.07 443.9449 361.3505EQ 10-Mar-08 238.75 20.9 436.81 223.05 19.12 365.5744 399.608EQ 11-Mar-08 240 22.15 490.6225 230 26.07 679.6449 577.4505EQ 12-Mar-08 240 22.15 490.6225 216 12.07 145.6849 267.3505EQ 13-Mar-08 213.85 -4 16 191.25 -12.68 160.7824 50.72EQ 14-Mar-08 204.4 -13.45 180.9025 188.3 -15.63 244.2969 210.2235EQ 17-Mar-08 198 -19.85 394.0225 185.5 -18.43 339.6649 365.8355EQ 18-Mar-08 196.7 -21.15 447.3225 181.5 -22.43 503.1049 474.3945EQ 19-Mar-08 202.2 -15.65 244.9225 194.2 -9.73 94.6729 152.2745EQ 25-Mar-08 201.5 -16.35 267.3225 189 -14.93 222.9049 244.1055EQ 26-Mar-08 205.9 -11.95 142.8025 195 -8.93 79.7449 106.7135EQ 27-Mar-08 204.25 -13.6 184.96 196 -7.93 62.8849 107.848EQ 28-Mar-08 203.5 -14.35 205.9225 190.7 -13.23 175.0329 189.8505EQ 31-Mar-08 197 -20.85 434.7225 181.65 -22.28 496.3984 464.538total 17days 3703.45 5942.525 3466.75 5560.47 5550.57

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



Graph Showing the High and Low Prices Of SAIL




High price

Mean=217.85


Co-variance=8.58

Low price

Mean=203.93


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.


A STUDY OF EQUITY ON CAPITAL MARKETS Analysis

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.

InterpretationFrom 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 what’s happening in

the markets.


A STUDY OF EQUITY ON CAPITAL MARKETS Objective5: To study perception of equity form the point of

investors

Table showing sex profile of investors

Sex Number of respondents Percentage

Male 40 80

Female 10 20

0

10

20

30

40

50

60

70

80

number ofrespondents

percentage

1 2

male

female

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

female’s 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

20-30 15 30

30-40 18 36

40-50 11 22

50&above 6 12

Graph Showing Age Group Of INvestors

30%

36%

22%

12%

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


A STUDY OF EQUITY ON CAPITAL MARKETS Table showing occupation of investors

occupation frequency percentage

Salaried 10 20

professional 20 40

self employed 12 24

Other 8 16

10

20 20

40

12

24

8

16

0

510

152025

3035

40

salaried professional selfempoled

other

Graph Showing Occupation of investors

frequency

percentage

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

PUC 10 20

Graduation 25 50

Post graduation 15 30

Graph showing educational qualification of investos

20%

50%

30%

PUC

GraduationPost graduation

Analysis From the table it is shows that 50% of the investors belongs to graduation, 30% are post-

graduation .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 Frequency Percentage

<50000 30 60

50000 to 1lak 12 24

>1lak and above 8 16

0

10

20

30

40

50

60

<50000 50000 to 1lak >1lak and above

Graph shows savings of investors

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 Frequency Percentage

Equity share 20 40

Fixed deposit 13 26

Debenture 6 12

Derivatives 4 8

Bank deposits 7 14

Graph showing Area of investment

40%

26%

12%

8%

14%

Equity share

Fixed deposit

Debenture

Drivaties

Bank deposits

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 Frequency Percentage

<1year 11 22

1--3year 25 50

3--5year 8 16

5years&above 6 12

11

2225

50

8

16

6

12

05

101520253035404550

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

Graph Showing tenure of investment period

FrequencyPercentage

AnalysisFrom 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

InferencesFrom 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

Safety 13 26

Returns 30 60

Liquidity 7 14

Graph Showing the factors influencing decisions

26%

60%

14%

SafteyReturns

Liqudity

AnalysisForm 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.

InferencesFrom 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.

Awareness level Frequency Percentage

Yes 35 70

No 15 30

35

15

70

30

0

1020

30

4050

6070

Frequency Percentage

Graph Showing Awareness level of investors about Equity/IPO

YesNo

AnalysisIt 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

InferencesIt 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.

Stock Frequency Percentage

It 20 40

Banking 12 24

Auto mobile 8 16

Metals 6 12

Pharma 4 8

Graph shoeing the inverstors perference towards various stocks

40%

24%

16%

12%8%

AnalysisFrom 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.

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



Table showing investors experience with brokers

Investors experience

with broker NO of respondents Percentage

Excellent 20 40

Good 12 24

Fair 8 16

Exploited 6 12

20

40

12

24

8

16

6

12

0

5

10

15

20

25

30

35

40

Excellent Good Fair Exploited

Graph showing investors experience with brokers

NO of respondents

Percentage

AnalysisFrom 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.

InferencesIt can be concluded that 44% have had good experience.



FINDINGS,

SUGGESTIONS AND

CONCLUSION



Summary of findingsFrom the above analysis made in the previous chapter the following finding are derived.

The trading process is very reliable.

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.


A STUDY OF EQUITY ON CAPITAL MARKETS Most of the investors have had good experience with brokers.

RECOMMENDATION

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.



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 investor’s 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.



BIBLIOGRAPHY



BIBLIOGRAPHY

BOOKSPrasanna chandra : “Investment Analysis And Portfolio Management”

& Financial Management

L M Bole : “Financial Institution & Market

Magazines Business World

Business Today

Out look Money

News PapersThe Economic Times

The Business Standard

Business Line

InternetWWW.google.com

www.NSEindia.com

www.BSEindia.com

www.sebigov.com

www.rbi.com

www.indiainfoline.com

www.wikipedia.com


http://www.indiainfoline.com/

http://www.rbi.com/

http://www.sebigov.com/

http://www.BSEindia.com/

http://www.NSEindia.com/

http://WWW.google.com/


ANNEXURE



Questionnaire

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 [ ] post-graduation [ ]

7. Occupation

Student [ ] professional [ ] businessman []


A STUDY OF EQUITY ON CAPITAL MARKETS 8. Yours yearly savings?

<50000[ ] >50000[ ]

9. Monthly income

10000[ ] 12000[ ]

13000[ ] 20000[ ]

21000[ ] 50000[ ]

50000& above

10. What are your preferred avenues for investment?

Equity [ ] Mutual fund [ ] fixed deposits [ ]

Secondary market [ ] bullions [ ] debt instruments [ ]

11. Objectives of investment

Returns [ ] savings [ ]

Tax benefits [ ] 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?


A STUDY OF EQUITY ON CAPITAL MARKETS Family [ ] friends [ ] financial consultant [ ]

Broker [ ] other [please specify] [ ]

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 [ ] economic times [ ]

Financial express [ ] business line [ ]

18. Which parameters do you consider if you were invest in the

equity market?

Beta [ ] Alpha [ ] P/E ratio [ ] S D [ ]

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 [ ] Banking [ ] Auto mobiles [ ]


A STUDY OF EQUITY ON CAPITAL MARKETS Metals [ ] Pharmacy [ ]

22. Which of the investment magazines do you read?

Capital market [ ] Intelligent investors [ ]

Out look money [ ] 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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