capital markets

CHAPTER 1

INTRODUCTION

INTRODUCTION

Capital Market:

The Capital Market is an important constitute of the financial system. It is a market for long-term funds both equity, debt and funds raised within and outside the country.

The capital market aids economic growth by mobilizing the savings of the economic sectors and directing the same towards channels of productive uses.

This is facilitated through the following measures.

Issue of primary securities in the primary market, i.e., directing cash flow from the surplus sector to the deficit sectors such as the government and corporate sector.

Issue of secondary securities in the primary market, i.e., directing cash flow from the surplus sector to financial intermediaries such as banking & non-banking financial institutions.

The development of an efficient capital market is necessary for creating a climate conducive to investment and economic growth. The capital market comprises the

Primary Market

Secondary Market

Primary Market: Primary markets refers to the long-term flow of funds from the surplus sector to the government and corporate sector (through primary issue), and banks & non-banking financial intermediaries (through secondary issue).

Primary issues of the corporate sector lead to capital formation (creation of Net Fixed Assets and incremental change in inventories).

The nature of fund raising is as follows:

Domestic:

Equity issues by

Corporate (Primary Issues).

Financial Intermediaries (Secondary Issues).

Debt instruments by

Government (Primary Issues).

Corporate (Primary Issues).

Financial Intermediaries (Secondary Issues).

Externals:

Equity issues through issue of

Global Depository Receipts (GDR) and

American Depository Receipts (ADR).

Debt instruments through

External Commercial Borrowings (ECB).

Other External Borrowings: Foreign Direct Investment (FDI) in the form of Equity and Debt.

Foreign Institutional Investors (FIIs) in the form of Portfolio Investments.

Non-Resident Indian Deposits (NRI) in the form of Short-term and Medium-term Deposits.

The fund rising in the primary market can be classified as follows:

( I ) Public Issue by prospectus.

( II ) Private Placement.

( III ) Right Issues.

Secondary Market: Secondary market is a market for outstanding securities. Stock Exchanges are called as Secondary markets.

Stock exchange is an organized market place where securities are traded. The government bodies, semi-government bodies and public sector undertaking companies issues these securities for borrowing funds and raising resources.

Securities are defined as monetary claims and includes stock, shares, debentures and bonds etc,. if these securities are marketable as in the case of government stock, they are transferable by endorsement and are like movable property.

Under the Securities Contract Regulation Act of 1956, a security trading is regulated by the Central Government and such trading can take place only in stock exchanges, recognized by the government, under the Act.

At present there are 23 stock exchanges in India. Of these, major stock exchanges like Mumbai, Calcutta, Delhi, Chennai, Bangalore etc, are permanently recognized while a few are temporarily recognized.

Functions of Stock Exchange:

The functions of the stock exchange can be setout as follows:

Provides quotation for shares/stock for facilitating trading and market ability.

Extends liquidity to such stock as they are easily traded and marketable.

Provides an orderly regulated market for securities whose prices are determined by free market forces of supply and demand.

Promotes savings and investment in the economy by attracting funds for investment in corporate shares and securities.

Importance and Need of the study:

To understand the secondary market segment includes stock exchanges like Nation Stock exchange and also main study need is to investor preferences towards the nifty shares such as Blue chip shares and performance of those shares and also the available services offered by stock exchanges to the investors.

To analyze the evolution of blue chip shares in NSE India, how they consider as blue chip share. To know about the Nifty index performance, and to create awareness about the blue chip share among the investors.

Among all the investors of the National Stock Exchange, to know the importance of Blue chip shares segment, it is necessary to go for the study called A study on selected Blue chip shares performance of NSE.

Objectives of the study:

The main objective of this project study is to understand the blue chip shares performance traded in NSE.

To understand the overall concept of the primary and secondary markets.

To understand the mechanisms involved in the transactions of blue chip shares at National Stock Exchange. To analyze the total transactions of blue chip shares those were traded in the financial year 20011 2012.

To know the Business days and Timings of National Stock Exchange.

Scope of the study:

It covers the concept and details of capital markets

It includes the trading of shares at NSE

To study is to protect the interests of the sellers and buyers of shares.

It includes the information regarding the volatility in the stock market through trading of the shares.

The analysis part of this project includes the total performance of the year 2011-2012.

Methodology of the study:

Primary Data: The data which is collected a fresh and the first time, and thus happen to be original in character is called Primary Data.

Secondary Data:

The data which have been already collected by someone else and which have been passed through the statistical process is called Secondary Data.

Sources of data collection:

The methodology adopted in this study is mostly on secondary data collection i.e.

Information from the internet.

By referring the text books, stock market related books (Journals & Magazines).

Information provided by the office of SreeNidhi Investments of Religare Securities limited

The time period for the data analysis taken from April 2011 to March 2012.

Limitations of the study:

This study has been conducted to understand only the share price behavior of selected blue chip share sectors.

Data collection was strictly confined to Secondary Data.

Detailed study of the topic was not possible due to limited size of the project.

Study is limited to project duration.

CHAPTER 2

LITERATURE REVIEW

LITERATURE REVIEW

Literature Review

TYPES OF SHARES:

Blue chip shares:

Shares of well known & established companies are called Blue chip shares they must show consistent growth over the years. These shares have bright future prospects & they are expected to contribute sustained growth in the future also.

Defensive shares:These shares tend to fall less in bear market when compared with other shares & they provide safe return for the investor money. In other words these shares naturally Blue chip shares fall under this category also.

Growth shares:

They show increasing higher than average earnings per share than the industry. They are good for long term investment, although the current yield of such shares can be insignificant because of their higher P/E ratio.

Cyclical Vs Non cyclical shares:

Cyclical shares are those which rise in price with the state of the national economy of the industries to which they belong like construction, auto mobiles, current, engineering etc. They may also be affected by international economy of industries such as shipping, aviation and tourism. They also include shares which are affected by natural phenomenon like fertilizers etc. If the shares are not affected by such cyclical changes either due to the state of the national economy or the international economy, they are called non cyclical shares. Shares of drug companies, insurance companies & basic food stuff of many consumer products companies come under this category.Turn around shares:

These are those which either rise or fall all in a sudden due to turn around situations prevailing in companies, they offers opportunities to investors to pick up the shares when their price is low.Active shares:These are those in which are frequent and day to day dealings. They must be bought & sold at least three times a week. Investors can buy or sell these shares quite easily in the market.Alpha shares:

Those which are most frequently traded in the market they are also called specified shares or cleared securities. They are included under group A shares while listing one stock exchange.

Sweat shares:Those shares which are issued to employees or workers who contribute for development of company by providing necessary know-how using their intellectual property. These must be value addition to the company because of their active involvement in the company & they contribute their right for the progress of company. Sweat shares are indeed a reward for hard active & dedicated work for the development of company.

BLUE -CHIP SHARES:

There is a reason blue-chip shares are known as such they are named after the top ended chips at the casino. Opting to buy these types of shares mean you get to buy into some major companies that is, if you can afford it.

Blue-chip shares are investments in the bigger companies, usually listed in the stock markets top-50. Generally these types of shares have been trading for a long time and have a history of returning solid profits-which means regular dividends for their share holders.

One of the advantages of blue-chip investments is that the dividend can be expected to grow overtime if a business performs as forecast. The upshot? Your Investment grows during times when share prices elsewhere may be stagnant, volatile or dropping.

GETTING THE BLUES:

Anyone who can afford to buy into a blue-chip company can become a share holder from mums and dads to experienced share market investors. However, these shares dont come cheap. Private investors can expect to pay high amount per share. However often as well, you are required to buy a minimum no. of shares to get yours foot in the door- this can restrict entry for many people.

Examples of blue-chip shares in India

1. State Bank of India

2. Ranbaxy

3. Reliance petroleum limited

4. Infosys technologies

5. Tata motors etcNO RISK? THE SAFETY MYTH:It is perceived safety of blue- chip shares that make them attractive to inexperienced investors, such as your mums and dads, while blue-chip shares are those with the highest market values, it doesnt mean they are necessarily a safe bet-losses can still happen.

For example Satyam was once considered a blue-chip stock in India, but then collapsed in 2008.

As well, investors who choose the blue-chip path can make of sitting back waiting for dividends to roll in and not diversifying this investment portfolio. Putting all of your eggs into one basket, so that speak, believing you are on a sure thing can be dangerous. Should there a down turn in a certain sector, those investors who have not diversified people for example who have shares in just one or two big companies such Reliance group shares will fed it the most if the downturn impacts the sector their company operation within. As with all investments, spreading your risk across companies, industries, even countries is one way to reduce your exposure and risk, if safety is the name of the game for you.

BECOME AN EXPERT:

Just as when you are looking to buy a home you read the news papers, go to see a no. of properties, ask associates friends and family for advice and start to scrutinize banks for good mortgage deals, before you invest you will also need to do some research read the papers, talk to people, seek advice. Get familiar enough with the market to make up your own mind about the sectors and countries you want to put your money in to and base these decisions on real information, numbers, annual reports, industry trend data, share price fluctuations not gut feel. The national Stock Exchange online is also a great source of information. Employing a broker or financial planner is also a smart way to invest using training wheels till you are confident enough to go it alone (or have more time).

DRIP FEED YOUR STRATEGY:

After consulting with an advisor and developing a strategy, these days most people make regular contribution to their investment funds via weekly or monthly direct debit. Shares can be bought by setting up portfolio through a bank or financial planner or buying from the electronic share market. Top buy electronically first you will need to sign up as a client of a stock broking firms, such as Gen securities, Religare securities limited etc.VOLATILITY:

The relative rate at which the price of a security moves up and down. Volatility is found by calculating the annualized standard deviation of daily change in price. If the price of a stock moves up and down rapidly over short time periods, it has high volatility. If the price almost never changes, it has low volatility.

A volatile market experiences unpredictable price fluctuations. In the context of the bond market, volatility describes the change in the price of a bond in relation to a given change in its yield to maturity. Implied volatility is the only component of the Black-Scholes option-pricing model which is not known at the outset. When an option has been traded the formula can be re-arranged to find the implied volatility at which the pricing model will calculate the traded price to be 'fair value'. Historic volatility is the annualized standard deviation of the relative rates of return of the daily closing prices for a security over a particular period.

Extended Review to cover national blue-chip indices in Belgium, France, Germany, Ireland, Italy, the Netherlands, Spain, Sweden and Switzerland. Dublin, city, Republic of IrelandDublin,Irish Baile tha Cliath, county borough (1991 pop. 915,516), Leinster, capital of the Republic of Ireland, on Dublin Bay at the mouth of the Liffey River. Ireland -- Research and Markets has announced the addition of Proxy Voting Proxy voting is the delegation to another member of a voting body of that member's power to vote in his absence. It is essentially synonymous to delegated voting. Proxy voting is commonly used in corporations for voting by members or shareholders, because it allows members.

The author reviews the issues proposed to shareholders during 2005 together with a detailed analysis of the results. For the first time the review has been extended to cover national blue-chip indices in Belgium, France, Germany, Ireland, Italy, the Netherlands, Spain, Sweden and Switzerland. The nine months between 1 January 2005 and 31 September 2005 saw a total of 128 meetings held by FTSE.A company that specializes in index calculation. Although not part of a stock exchange, co-owners include the London Stock Exchange and the Financial Times.

Financial shares push US stocks higher

New York, July 10 (DPA) US stocks edged up Thursday, led by financial shares, which were buoyed by a positive report on banking giant Goldman Sachs.Bank of America suggested buying Goldman Sachs shares, helping financial firms close .4 percent higher on the day. Health companies fell after pharmaceutical giant Merck halted trials for a cholesterol drug.

The blue-chip Dow Jones Industrial Average inched up 4.76 points, or 0.06 percent, to 8,183.17. The broader Standard & Poors 500 Index rose 3.12 points, or 0.35 percent, to 882.68. The technology-heavy NASDAQ Composite Index gained up 5.38 points, or 0.31 percent, to 1,752.55.

The US currency dropped against the euro to 71.28 euro cents from 72.02 euro cents Wednesday. The dollar crept higher against the Japanese currency

to 92.99 yen from 92.88 yen.

DSE forms body to update blue chip indexBSS, DhakaDhaka Stock Exchange (DSE) has formed a 10-member committee to bring major changes to its blue-chip DSE-20 index. Headed by former finance adviser to the past caretaker government AB Mirza Azizul Islam, the committee includes former governor of Bangladesh Bank Dr Mohammad Farashuddin and representatives from major trade bodies and professional organizations, DSE President Rakibur Rahman told BSS on Saturday. The committee is meeting Monday to review the index that has not been done since its inception in January 1, 2001. The DSE introduced the index as a benchmark for financially sound listed companies. But the index apparently lost the status because the authorities had not updated it in the past nine years. The DSE president said the committee would hold its debut meeting on Monday to review the DSE-20 index for the first time.Share investors and other stakeholders in the country's stock market had long been claiming that the DSE-20 index does not represent the listed blue-chip companies as some major blue- chip issues still remain out of it. Admitting the argument, the DSE president said the committee would surely have discussions on the argument and would suggest changes to the index to make it a real reflector of the blue-chip listed companies."The committee will look into the financial performance of the listed companies including their net asset value (NAV), profit and declared dividend in the past years to recommend addition to the index or deduction from it," Rakibur Rahman said.He indicated that a number of companies now included in the DSE-20 index would be de-listed from it as their performances were not good during the last five years.He, however, said the DSE was actively considering a DSE-30 index, replacing the DSE-20 so that it would accommodate more companies, having sound fundamentals.He said the committee would finalize its recommendations in the next six weeks. "We are expecting to introduce the new DSE-30 index after the recommendations," he said.

Blue-chip: Halifax: to have and to hold

The Independent (London, England) | June 1, 1997| RICHARD PHILLIPS | Copyright 1997 The Independent - London. Provided by ProQuest LLC. (Hide copyright information) Copyright

Tomorrow is a big day for savers with the Halifax, as they wait for shares in the new bank to start trading. The latest indications suggest they will begin at around 700p - way above initial estimates of up to 450p.

The question for savers is whether to sell now, and take a tidy profit, or tuck them away.

While savers will be delighted, it is more difficult for outsiders to decide if the shares offer any value at these levels as a long- term investment. The Halifax is the largest mortgage lender in the country, but it chose to convert to bank status for several reasons

Blue Chip investors want action

5:00AM Wednesday Jan 09, 2008By Anne Gibson Blue Chip investor Greta Norman says she is owed $6000 in rent on an Auckland apartment. Photo / Dean Purcell

Angry Blue Chip investors want to rally to discuss their options over thousands of dollars they say is owed to them in unpaid rent. Greta Norman, who is owed $6000 rental arrears on an Auckland apartment she owns with her husband, says she is willing to be the catalyst for investors to meet and discuss their plight.

Yesterday, she created a new email address in the hope investors would send her details so she can co-ordinate a mass meeting. Rent from her $840,000 inner-city apartment stopped flowing into her bank account at the end of October and although she knows of other investors in much the same situation, people could not contact each other, she said. She had trouble getting information about her situation and complained of late rate payments on her luxury unit to Auckland City and Auckland Regional Council. She had experienced a number of problems over valuations and other issues and said she was extremely worried. We need to get together and we're looking for direction and leadership collectively," she said, hoping that legal and financial experts might attend any rally to give advice. Another investor, James Abbott, is short of $2800 rent on his $450,000 investment apartment in Eden Terrace and he is keen to meet others too. "I would definitely be interested in joining other investors in any discussions."I feel a group of investors together will be the only way to recover the money owed," he said.

Other disenchanted investors complained yesterday about problems. Kirsti Hansen, who bought a $525,000 apartment through Blue Chip, said yesterday that she had also experienced problems. Her November payment was late and after a series of difficulties, she has sought to manage her apartment directly rather than dealing with the company.

Nicola Williamson said her late mother had a substantial investment with the company and she had been trying to recover that money for some time. The cash was the deposit on a Beach Road apartment in Parnell but the transaction had not settled and Blue Chip still held the money, she said, describing her situation as "a nightmare".

Blue Chip's communications Chief Jonathan Knox defended the company and said that in September investors were sent letters about a big change to business arrangements in New Zealand and a new franchising system. This change had caused a few problems but he said these would soon be resolved.

The company's analysis of rental payment problems showed that only about 0.2 per cent of all people were affected, he said. Any outstanding rent problems would be resolved "imminently which means instantaneously", Knox said. Clients had been kept well informed and it was only media reports which had caused "jitters".Knox said it was also wrong for investors to say they had money in Blue Chip because Blue Chip means two new companies - Diem and Mide - which traded under the Blue Chip logo in New Zealand.

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Designed to serve students majoring, minoring, and concentrating in Literature as well as those students who may get to take only one or two Literature subjects while at the Institute, the Literature curriculum at MIT offers a wide range of undergraduate classes at Introductory, Intermediate, and Advanced levels. Most classes are small and offer significant opportunity for student writing and speaking. Many classes focus on literature written in English, though we offer many others covering works in translation from antiquity to yesterday.

Notable for its interdisciplinary variety and for its openness to film and other forms of popular culture, the Literature program is also strong in traditional areas and historical periods such as Renaissance and the 19th Century. Most classes at all levels are offered once a year; many of the HASS-D introductory classes are offered every semester. Staffed by well-published, influential scholars and creative writers, the Literature faculty is recognized for its superior and committed teaching.

"Blue Chip" characteristics a study of managers' perceptions

Literature Review

Several authors have mentioned certain criteria for a stock to qualify as a "blue chip" investment. The New Shorter Oxford Dictionary (Brown, 1993) defined "blue chip" stocks as common stocks of "well-known" companies with a history of profit growth and dividend payment as well as "quality management of products and services". In the Dictionary of Finance and Investment Terms (Downes, 1985), a "blue chip" is a common stock of a nationally known company reputed for its quality management. In the International Dictionary of Securities Industries (Valentine, 1989), it is defined as "an equity share of a large, safe and prestigious company". These dictionary definitions are somewhat consistent with Stafford (1987), who opined that "blue chips" are shares in "very sound, well-established and usually large companies", citing Prudential, Unilever and ICI as examples.

In contrast to these somewhat qualitative definitions, Belsky (1993) gave a more quantitative interpretation by listing the following requisite characteristics of "blue chip" companies: (1) estimated revenues of at least US$300 million, (2) solid balance sheets with debt of no more than 40 per cent of total capital, (3) likely profit growth of at least 15 per cent, and (4) projected share price gains of 20 per cent or more. A fundamentally similar set of criteria was enunciated by Willis (1993), although the numerical conditions laid down were different. Essentially, Willis (1993) asserted that "blue chip" companies are companies that dominate niches in their markets and that are capable of solid long-term earnings growth potential. Both Belsky (1993) and Willis (1993) considered "high sales turnover", "high profit growth" and "low debt-equity ratio" to be important characteristics of a "blue chip" company.

Consistent with both Belsky (1993) and Willis (1993),, Hardy (1987) concurred that the best stocks are those of companies that have little or no debt, inferring that a low debt-equity ratio may provide some evidence of a company's "blue chip" status. However, he cautioned that this cannot be the sole criterion; lack of debt may not be a mark of quality if management is overly conservative and not willing to expand as rapidly as it could with borrowed funds. Smart managers "maintain a judicious balance between debt and equity capital". Profitability and stability were also highlighted by Hardy (1987) as two key important criteria in determining which the best stocks are. Countrys 30-blue chip firms may witness 10% decline Q1 profit

NEW DELHI: The countrys 30-blue chip firms may witness as much as 10 per cent decline in their first quarter profits in the current fiscal, Earnings, Measuring market volatility , Ten hot money-spinners in India, Long term plan for better returnsShould you sell your stocks? Primarily due to subdued earnings from real estate and metal sectors, analysts believe.

We expect Sensex PAT to de-grow by 9.7 per cent Year-on Year (YoY) in Q1FY10 the third straight quarter of decline. Sensex sales is likely to fall by four per cent, domestic brokerage firm Religare said in a report.

However, earnings are likely to be relatively better due to a favorable swing in currency movement during the quarter and extraordinary items. The Sensex earnings (excluding-oil companies) are estimated to drop by 4.9 per cent YoY, implying a better performance compared with the 8.8 per cent decline seen in Q4 FY2009, another brokerage firm Share khan said in a report.

Diem was the master franchisee for Blue Chip, which was headquartered in Australia not Auckland as reported yesterday, he said. Payment issues would be resolved fast and the year ahead looked great. "Thankfully these transitional issues will imminently be a thing of the past and with refined product offerings and new systems in place, 2008 looks like being a great year.

"I think all organizations experience issues from time to time."

INDUSTRY PROFILE

STOCK EXCHANGE

HISTORY:

The only stock exchange operating in the 19th century was Bombay Stock Exchange set up in 1875 and Ahmadabad set up in 1894. There were organized as voluntary non-profit making association of brokers to regulate and protect their interests. Before the control on securities trading became a central subject under the constitution in 1950, it was a state subject and the Bombay securities contracts (control) Act if 1925 used to regulate trading in securities. Under this Act, the Bombay Stock Exchange was recognized in 1927 and Ahmadabad in 1937.

During the war boom, a number of stock exchanges were organized even in Bombay, Ahmadabad and other centers, but they were not recognized. Soon after it became a central subject, central legislation was proposed and a committee headed by A.D. Gorwala went into the bill for securities regulation. On the basis of the committees recommendations and public discussion, the securities contracts (regulation) Act became law in 1956.

DEFINITION OF STOCK EXCHANGE:

Stock Exchange means anybody or individuals whether incorporated or not, constituted for the purpose of assisting, regulating or controlling the business of buying, selling or dealing in securities.

It is an association of member brokers for the purpose of self-regulation and protecting the interests of its members.

It can operate only if it is recognized by the government under the securities contacts (regulation) Act, 1956. The recognition is granted under section 3 of the Act by the central government, Ministry of Finance.

BY LAWS:

Besides the above act, the securities contracts (regulation) rules were also made in 1957 to regulate certain matters of trading on the stock exchanges. There are also by laws of the exchanges, which are concerned with the following subjects.

Opening/Closing of Stock Exchanges, timing of trading, regulation of blank transfers, regulation of badla or carryover business, control of the settlement and other activities of the Stock Exchange, fixation of margins, fixation of market prices or making up prices. Regulation of taravani business (jobbing), etc; regulation of brokers trading, brokerage charges, trading rules on the exchange, arbitration and settlement of disputes, settlement and clearing of the trading etc.

REGULATION OF STOCK EXCHANGE:

The Securities contracts (regulation) act is the basis for operations of the Stock Exchanges in India. No exchange can operate legally without the Government permission or recognition. Stock Exchanges are given monopoly in certain areas under section 19 of the above Act to ensure that the control and regulation are facilitated. Recognition can also be withdrawn, if necessary where there are no Stock Exchanges in its absence.

SECURITIES AND EXCHANGE BOARD OF INDIA [SEBI]:

SEBI was setup as an autonomous regulatory authority by the Government of India in 1988 to protect the interests of investors in securities and to promote the development and to regulate the securities market and for matters connected there with or incidental there to. It is empowered by two acts namely SEBI Act, 1992 and Securities Contract (regulation) Act, 1956 to perform the function of protecting investors rights and regulating the capital markets. SEBI was given statutory status by an Act of Parliament on April 4, 1992. SEBI was authorized.

1) To regulate all merchant banks on issue activity

2) To lay guidelines, and supervise and regulate the working of mutual funds, and

NATIONAL STOCK EXCHANGE

The Organization:

The National Stock Exchange of India Limited has genesis in the report of the High Powered Study Group on Establishment of New Stock Exchange, which recommended promotion of The National Stock Exchange by financial institutions 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 best 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 (Equity) segment commenced operations in November 1994 and operations in Derivatives segment commenced June 2000.

The National Stock Exchange (NSE) is Indias leading stock exchange covering various cities and town across the country. NSE was set up by leading institutions to provide a modern, fully automated screen based trading system with national reach. The exchange has brought about unparalleled transparency, speed and efficiency, safety and market integrity. It has set up facilities that serve as a model for the securities industry in terms of system practices, and procedures.

NSE has played a catalytic role in reforming the Indian securities market in terms of micro structure, market practices and trading volumes. The market today uses slate of art information technology to provide an efficient and transparent trading, clearing and settlement mechanism, and has witnessed several innovations in products and services viz., dematerialization of stock exchange governance, screen based trading, compression of settlement cycles, dematerialization and electronic transfer of securities, securities lending and borrowing, professionalization of trading members, fine-turned risk management systems, emergence of clearing corporations to assume counter party risks, market of debt and derivative instruments and intensive use of information technology.

Technology:

Across the globe, developments in information, communication and network Technologies have created paradigm shifts in the securities market operations. Technology has enabled organizations to build new sources of competitive advantage, bring about innovations in products and services, and to provide for new business opportunities. Stock Exchanges all over the world have realized the potential of IT and have moved over to electronic trading systems, which are cheaper, have wider reach and provide a better mechanism for trade and post trade execution.

NSE believes that technology will continue to provide the necessary impetus for the organization to retain its competitive edge and ensure timeliness and satisfaction in customer service. In recognition of the fact that technology will continue to redefine the shape of the securities industry, NSE stresses on innovation and sustained investment in technology to remain ahead of competition.

Form around 400 cities spread all over the country. In the recent past, capacity enhancement measures were taken up in regard to the trading systems so as to effectively meet the requirements of increased users and associated trading loads. With up gradation of trading hardware, NSE can handle up to 1 million trades per day. NSE has also put in place NIBIS (NSEs Internet Based Information System) for on-line real time dissemination of trading information over the Internet. In order to capitalize on in house expertise in technology, NSE set up a separate company, NSE.IT, in October 1999. This IT expertise to provide a platform for taking up new IT assignments both within and outside India and attaining global exposure.

The telecommunications network uses x.25 protocol and is the backbone of the automated trading system. Each trading member trades on the NSE with other members through a PC located in the trading members office, anywhere in India. The Trading members on the wholesale Debt Market segment are linked to the central computer at the NSE through dedicated 64kbps leased lines and VSAT terminals. These leased lines are multiplexed using dedicated 2 mbps, optical-fiber links. The WDM participants connect to the trading system through dial-up links.

The exchange uses powerful RISC based UNIX services, procured from Digital and HP for the back office processing. The latest software platforms like ORACLES 7, RDBMS, and GUPTA- SQL/ORACLE FORMS 4.5 Front- Ends, etc.; have been for the exchange applications. The Exchange currently manages its data center operations, system and database administration, design and development of in-house systems and design and implementation of telecommunication solutions.

NSE is one of the largest interactive VSAT based Stock Exchanges in the world. Today it supports more than 3000 VSATs and is expected to grow to more than 4000VSATs in the next year. The NSE network is the largest private wide area network in the country and the first extended C-B and VSAT network in the world. Currently more than 9000 users are trading on the real time online NSE application. There are over 15 large computer systems, which include non-stop fault-tolerant computers and high-end UNIX servers, operational less than one roof to support the NSE applications. This coupled with the nationwide VSAT network makes NSE the countrys largest Information Technology user.

NSE-NIFTY

The NSE on April 22, 1996 launched a new equity Index. The NSE-50. The new Index which replaces the existing NSE-100 Index is expected to serve as an appropriate Index for the new segment of futures and options. NIFTY means Nations Index for Fifty Stocks. The NSE-50 comprises 50 companies that represent 20 broad industry groups with an aggregate market capitalization of around Rs. 1,70000 crs. All companies included in the Index have a market capitalization excess of Rs. 500crs each and should have traded for 85% of trading days at an impact cost of less than 1.5%.

NSE- MIDCAP INDEX

The NSE midcap Index or the Nifty comprises 50 stocks that represent 21 boards industry groups and will provide proper representation of the midcap segment of the Indian Capital Market. All stocks in the Index should have market capitalization of greater than Rs. 200crs and should have traded 85% of the trading days at an impact cost of less 2.5%. The base period for the index is Nov 4, 1996 which signifies two years for completion of operations of the capital market segment of the operations. The base value of the Index has been set at 1000.

MISSION:

NSEs, 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 nationwide 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.

The standards set by NSE in terms of market practices and technology has become industry benchmarks and is being emulated by other market participants. NSE is more than a mere market facilitator. Its that force which is guiding the industry towards new horizons and greater opportunities.

PROMOTERS:

NSE has been promoted by leading financial institutions, Banks, Insurance companies and other financial intermediaries:

Industrial Development Bank of India Limited

Industrial Finance Corporation of India Limited

Life Insurance Corporation of India

State Bank of India

ICICI Bank Limited

IL & FS Trust Company Limited

Stock Holding Corporation of India Limited

SBI Capital Markets Limited

The Administrator of the Specified Undertaking of Unit Trust of India

Bank of Baroda

Canara Bank

General Insurance Corporation of India

National Insurance Company India

The New India Assurance Company Limited

The Oriental Insurance Company Limited

Punjab National Bank

Oriental Bank of Commerce

Corporation Bank

Indian Bank

Union Bank of India

At present, there are 24 Stock Exchanges recognized under the Securities Contract (Regulation) Act, 1956. They are:NAME OF THE STOCK EXCHANGEYEAR

Bombay Stock Exchange1875

Ahmadabad Share and Stock Brokers Association Ltd.1957

Calcutta Stock Exchange Association Ltd.1957

Delhi Stock Exchange Association Ltd.1957

Madras Stock Exchange Association Ltd.1958

Indore Stock Exchange Association Ltd.1968

Bangalore Stok Exchange1943

Hyderabad Stock Exchange1978

Cochin Stock Exchange1982

Pune Stock Exchange1982

U.P. Stock Exchange Association Ltd.1983

Ludhiana Stock Exchange Association1983

Jaipur Stock Exchange Ltd.1984

Gauhathi Stock Exchange Ltd.1985

Mangalore Stock Exchange Ltd.1986

Maghad Stock Exchange Association Ltd.1989

Bhubaneshwar Stock Exchange Association Ltd.1989

Over the Counter Exchange of India, Bombay1990

Saurashtra Kutch Stock Exchange Ltd.1991

C Stock Exchange Ltd.1991

Coimbatore Stock Exchange Ltd.1991

The Meerut Stock Exchange Ltd.1991

National Stock Exchange Ltd.1991

Integrated Stock Exchange Ltd.1999

COMPANY PROFILERELIGARE SECURITIES LTD.

Corporate Office:

19 Nehru Place, New Delhi 110019

Website: www.religare.inEmail: [email protected]

: RELIGARE to 58888

PUNE:

Ground Floor, Amar Caliber,

BMCC Road, Shivajinagar,

Pune 411004

AHMEDNAGAR:

5&6, Himalaya Tower,

Opp. Deepak Hospital,

Savedi Road,

Ahmednagar - 414003

VISION & MISSION-

Companys Vision

To build Religare as a globally trusted brand in the financial services domain and present it as the Investment Gateway of India.Companys Mission

Providing complete financial care driven by the core values of diligence and transparency.

Brand Essence

Core brand essence is Diligence and Religare is driven by ethical and dynamic processes for wealth creation.

History and background

RELIGARE Securities Ltd. (RSL) is a wholly owned subsidiary of RELIGARE Financial Services Ltd. (RFSL), a Company promoted by the late Dr.Parvinder Singh, Ex-CMD of Ranbaxy Laboratories Ltd.

The primary focus of Religare Securities Ltd. is to cater to services in Capital Market Operations to Institutional Investors. The Company is a member of the National Stock Exchange (NSE) and OTCEI. The growing list of financial institutions with whom RSL is empanelled as approved Broker is a reflection of the high levels of services maintained by the Company.

REL operates from seven domestic regional offices, 43 sub-regional offices, and has a presence in 498* cities and towns controlling 1,837* business locations all over India.

To make a mark in the global arena, REL acquired UK-based Hichens, Harrison & Co. in 2008 which was subsequently re-named as Religare Hichens Harrison PLC ("RHH"). Hichens, Harrison & Co. was incorporated in London in the year 1803 and is believed to be one of the oldest firms of stockbrokers in the City of London. Pursuant to expansion of REL's business, the company has grown from largely an equity trading company into a diversified financial services company. With the addition of RHH the REL group now operates out of multiple global locations, other than India, (the UK, the USA, Brazil, South Africa, Dubai and Singapore).

RELIGARE was founded with the vision of providing integrated financial care driven by the relationship of trust. The bouquet of services offered by RELIGARE includes Broking (Stocks and Commodities), Depository Participant Service, Advisory on Mutual Fund Investments and Portfolio Management Services.

RELIGARE is a pioneer in the concept of partnership to reach multiple locations in order to effectively service its large base of individual clients. Besides the reach of RELIGARE, the clients of the company greatly benefit by its strong research capability, which encompasses fundamentals as well as technical knowledge.

RELIGARE GROUP: RELIGARE in recent years has expanded its reach in health care and financial services wherein it has multiple specialty hospital and labs which provide health care services and multiple financial services such as secondary market equity services, portfolio management services, depository services etc.

RELIGARE financial services group comprises of Religare Securities Limited, RELIGARE Comdex Limited and RELIGARE Finvest Limited which provide services in Equity, Commodity and Financial Services business & Religare Insurance Advisory Ltd.

RELIGARE SECURITIES LIMITED1. Member of National Stock Exchange of India and Bombay Stock Exchange of India.2. Depository Participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL). A SEBI approved Portfolio Manager.

RSL provides platform to all segments of the investor to leverage the immense opportunity offered by equity investing in India either on their own or through managed funds in Portfolio Management.

The ARN No. of the Religare Securities Ltd. is 33764. The ARN No. is required by to be available with the broker who deals on behalf of investors or sell the mutual funds of the different ompanies present in the market.

Religare Enterprises Limited

Religare Securities Limited

Equity Broking

Online Investment Portal

Portfolio Management Services

Depository Services

Religare Commodities Limited

Commodity Broking

Religare Capital Markets Limited

Investment Banking

Proposed Institutional Broking

Religare Realty Limited

In house Real Estate

Management Company

Religare Hichens Harrison**

corporate Broking

institutional Broking

SERVICES :-

Religare Finvest Limited

Lending and Distribution business

Proposed Custodial business

Religare Insurance Broking Limited

Life Insurance

General Insurance

Reinsurance

Religare Arts Initiative Limited

Business of Art

Gallery launched - arts-i

Religare Venture Capital Limited

Private Equity and

Investment Manager

Religare Asset Management*

Derivatives Sales

Corporate finance

Organization Structure:

Competititors of Religare:-There are several financial security companies playing their roles in Indian equity market. But Religare faces competitions from these few companies.

ICICI Direct.com

Share Khan (SSKI)

Kotak Securities.com

India Bulls

HDFC Securities 5paisa.com

Motilal Oswal IL&FS

Karvy

About Religare Securities Limited (RSL)

One of the leading integrated financial services groups of India Diverse range of offerings Client base of more than 5000,000 and growing across the retail, wealth and Institutional Spectrum. Pan India and global footprint. Width and depth of management leading a formidable employee base. Best-in-class Research. Sweetly placed to spot new opportunities and power ahead.The Religare Edge

Diverse offerings

Dynamic Management Team

State-of-the art technology

Vast Distribution and Reach

Robust Brand Recognition

Synergistic partnerships

Innovative Initiatives

DATA ANALYSIS

&

INTERPRETATION

SHARE PRICE PERFORMANCE OF SOFTWARE SECTOR FOR SELECTED SCRIPS IN 2011 - 2012TABLE-4.1Month wise INFOTECH share price performance in 2011-12Month wiseAverage Price

(in Rs.)Price increase/decrease

in percentage (%)

Aprill112033.21---

May111981.39- 2.54

June111960.50- 1.05

July111964.30- 0.19

August111879.04- 4.34

September 111845.49- 1.78

October 111922.63+ 4.17

November 111669.14- 13.18

December 111695.44+ 1.58

January121549.91- 8.58

Feb 121576.33+ 1.70

March 121417.40- 10.08

Source: www.nseindia.com

Analysis of the table:

The above table shows the INFOTECH scrips price fluctuations in 2011-2012. Here total 12 months average prices are shown.

In the entire year the scrip price fall down from Rs.2033.21 to Rs.1417.40 due to fall in dollar value and rupee value strengthen. TABLE-4.2

Quarter wise INFOTECH share price performanceQuarterAverage Price

(in Rs.)Price increase/decrease in percentage (%)

Q1(April-June)1991.17--

Q2(July-Sept)1896.27- 4.79

Q3(Oct-Dec)1762.40- 7.59

Q4(Jan-Mar)1514.54- 13.64

Formation:The above table shows the average quarter prices of scrip which was taken from the previous table having the average monthly prices and the average prices of Quarter, half yearly and yearly.Interpretation of the table: In all quarters of INFOTECH scrip prices are decreased from Rs.1991.17 to Rs.1514.36.

From Q2 to Q4 the highest price percentage decreased i.e. -13.64 (Rs.1756.37 to 1514.36)

InfoTech scrip price decreased due to rupee value increased & Dollar value decreased. TABLE-4.3

Month wise TCS share price performance in 2011-12Month wiseAverage Price


in percentage (%)

Aprill111229.40--

May111243.02+ 1.10

June111178.46- 5.19

July111153.54- 2.10

August111077.88- 6.55

September 111034.95- 3.98

October 111073.29+ 3.70

November 11985.55- 8.17

December 111051.79+ 6.72

January12931.79- 11.41

Feb 12896.99- 3.73

March 12835.80- 6.82



The above given TCS scrip monthly prices & in total year the scrip prices should fall down from Rs.1229.40 to Rs.835.80. The except December in all months the scrip price decreases and in December only +6.72% price increased.TABLE-4.4

Quarter wise TCS share price performanceQuarterAverage Price



Q2(July-Sept)1088.79- 10.53

Q3(Oct-Dec)1036.87- 4.76

Q4(Jan-Mar)888.23- 14.33

Formation:The above table shows the average quarter prices of scrip which was taken from the previous table having the average monthly prices. In that, every three monthly prices as an average price of Quarter price have taken.Analysis of the table:

The above table shows the TCS scrip prices fall down from quarter to quarter.

Every quarter the scrip price decreased and the highest percentage of decrease occurred in last Quarter i.e. -14.33% (Rs.1036.87 to Rs.888.23)TABLE-4.5

Quarter wise Comparison of INFOTECH Vs TCSQuarterINFOTECH Average Price

(in Rs.)TCS Average Price

(in Rs.)

Q1(April-June)1991.171216.99

Q2(July-Sept)1896.271088.79

Q3(Oct-Dec)1762.401036.87

Q4(Jan-Mar)1514.54888.23

Crucks of the table:

The given table shows the scrip prices, quality performance of INFOTECH and TCS.

In every quarter of the year the scrip price of both INFOTECH and TCS should be decreased.

In the INFOTECH the scrip price fall down from Rs.1991.17 to Rs.1514.54 and the scrip price deceased from Rs.1216.99 to Rs.888.23.

During this entire period the Rupee value strengthened and dollar value decreased. Because of that reason the prices fall down.Graph 4.P 1

SHARE PRICE PERFORMANCE OF BANKING SECTOR FOR SELECTED SCRIPS IN 2011 - 2012TABLE-4.6

Month wise ICICI Bank Share price performance in 2011-12Month wiseAverage Price


in percentage (%)

Aprill11915.18--

May11896.93- 1.99

June11931.29+ 3.84

July11966.40+ 3.77

August11853.92- 11.63

September 11943.97+ 10.60

October 111100.58+ 16.59

November 111190.15- 8.14

December 111210.00+ 1.67

January121270.80+ 5.02

Feb 121118.20- 12.01

March 12859.64- 23.12



In the above given scrip prices of ICICI Bank & monthly average prices of this scrip fluctuated from Rs.915.18 to Rs.859.64

From April to January the scrip price gone up from Rs.915.18 to Rs.1270.80 and after it would be decreased.

TABLE-4.7

Quarter wise ICICI Bank share price performance

QuarterAverage Price


In percentage (%)


Q2(July-Sept)921.43+ 1.42

Q3(Oct-Dec)1166.91+ 26.64

Q4(Jan-Mar)1082.88- 7.20

Formation:The above table is formed from the previous table i.e. the monthly average prices of ICICI Bank the table gives the average prices of Quarter wise.Analysis of the table:

If we compare from Q1 to Q2 the price increase only +1.42% and the next quarter to quarter the price of scrip increase highly from Rs.921.43 to Rs.1166.91 i.e. +26.64%

In this quarter (Q3) the price of scrip reached top of the price in total year. Because of this period our Indian share market reach top position in Nifty and Sensex points then after it fell down in the last quarter.

TABLE-4.8

Month wise SBIN Share price performance in 2011-12Month wiseAverage Price


in percentage (%)

Aprill111025.62--

May111271.73+ 23.99

June111333.49+ 4.85

July111568.06+ 17.59

August111576.16+ 0.51

September 111712.69+ 8.66

October 111899.72+ 10.92

November 112255.85+ 18.74

December 112372.40+ 5.16

January122363.53- 0.37

Feb 122155.93- 8.78

March 121750.38- 18.81

Source: www.nseindia.comAnalysis of the table:

The above table shows the monthly average prices of SBIN in 2011-12 From April-11 to December-11 the scrip price increased every month. During this period the price of scrip increased from Rs.1025.62 to Rs.2372.40

Then after December to March the scrip price fall down from Rs.2363.53 to Rs.1750.38

TABLE-4.9

Quarter wise SBIN share price performance in 2011-12QuarterAverage Price



Q2(July-Sept)1618.97+ 33.76

Q3(Oct-Dec)2173.03+ 34.76

Q4(Jan-Mar)2089.94- 3.82

Formation:The above table is assembled from the monthly prices average of SBIN Bank. So all four quarters average prices were taken.Crucks of the table:

In the above table shows the quarter prices of SBIN scrip in that mostly in quarter 3rd the price of scrip increased +34.22% it means from Rs.1618.97 to Rs.2173.03 increased.

Every quarter the scrip prices increased but except only fourth quarter. In the fourth quarter the prices of scrip fall down from Rs.2173.03 to Rs.2089.94 (i.e. -3.82%).

TABLE-4.10

Quarter wise Comparison of ICICI Vs SBIN

QuarterICICI Average Price

(in Rs.)SBIN Average Price

(in Rs.)

Q1(April-June)908.461210.28

Q2(July-Sept)921.431618.97

Q3(Oct-Dec)1166.912173.03

Q4(Jan-Mar)1082.882089.94

Crucks of the table:

The given table compares the quarter average prices of ICICI and SBIN banking scrips.

In the ICICI bank scrip the scrip price increases from Rs.908.46 to Rs.1166.91 and similarly the SBIN bank scrip also increased in first three quarters.

In the 3rd quarter both scrip prices should went the top mark of their price.

Because in this period the Indian share market growing like anything and after January ending of 2008 the market fall down from month to month. So that in quarter 4 the prices of scrips both ICICI & SBIN fall down slowly.

Graph 4.P 2

SHARE PRICE PERFORMANCE OF AUTOMOBILE SECTOR FOR SELECTED SCRIPS IN 2011 2012TABLE-4.11

Month wise TATA MOTORS share price performance in 2011-12Month wiseAverage Price


in percentage (%)

Aprill11722.51--

May11729.18+ 0.92

June11675.99- 7.29

July11731.54+ 8.22

August11616.70- 15.69

September 11714.73+ 15.89

October 11794.73+ 11.19

November 11714.30- 10.12

December 11743.65+ 4.10

January12736.22- 0.99

Feb 12719.47- 2.27

March 12655.95- 8.82


The above table shows the monthly average prices of TATA MOTORS scrip In the month of September the scrip price increased highly up to +15.89% and in the month August the scrip price decreased to -15.69%

The price of this scrip in this year is constantly increased & decreased.

TABLE-4.12Quarter wise TATA MOTORS share price performance in 2011-12 QuarterAverage Price



Q2(July-Sept)687.65- 3.04

Q3(Oct-Dec)750.89+ 9.19

Q4(Jan-Mar)703.88- 6.26

FormationThe above table shows the average quarter prices of auto mobile company which was formed from the previous table. In that, monthly average prices have taken.Crucks of the table:

From first quarter to second quarter the scrip price decreased -3.04% (Rs.709.22 to Rs.687.65)

And from the second quarter to 3rd quarter the scrip price increase +9.19% (Rs.687.65 to Rs.750.89). Because of this period the scrip price reach top position.

Next quarter the scrip price fall down -6.26% due to fall down of the stock market and decrease the demand of Automobiles.

TABLE-4.13

Month wise M & M share price performance in 2011-12Month wiseAverage Price


in percentage (%)

Aprill11740.87--

May11745.65+ 0.65

June11724.70+ 2.80

July11783..50+ 8.17

August11666.95- 14.88

September 11729.54+ 9.38

October 11734.55+ 0.69

November 11731.19- 0.46

December 11796.22+ 8.89

January12743.56- 6.61

Feb 12641.57- 13.72

March 12672.44+ 4.81


The above table shows the monthly average prices of M & M scrip.

In this scrip the price in April to December increased from Rs 740.87 to Rs796.22. After the price of scrip decreases to Rs.672.44 in the month of March-12.

In the August the scrip highly decreased -14.88% and increased highly in the September i.e. 9.38%.

TABLE-4.14Quarter wise M & M share price performance IN 2011-12QuarterAverage Price



Q2(July-Sept)726.66- 1.41

Q3(Oct-Dec)753.98+ 3.75

Q4(Jan-Mar)685.85- 9.03

Formation:The above table is formed from the monthly average prices of the M & M. In that we have taken every three months average price taken as average price and shown in the above table as average quarter prices.Crucks of the table:

In the given table the first quarter to second quarter the price of scrip decreased -1.14% (Rs.737.07 to Rs.726.66)

And in the next second quarter to 3rd quarter the scrip was increased +3.75 highest (Rs.726.66 to Rs.573.98)

In the last quarter the scrip price fall down -9.03% (Rs.753.98 to Rs.685.85). Because of the share market effected by the global financial crisis. So the market fall down & it effect on the scrip.

TABLE-4.15Quarter wise Comparison of TATA MOTORS Vs M & MQuarterTATA MOTORS Average Price(in Rs.)M & M Average Price(in Rs.)

Q1(April-June)709.22737.07

Q2(July-Sept)687.65726.66

Q3(Oct-Dec)750.89753.98

Q4(Jan-Mar)703.88685.85

Crucks of the table: The above table shows the average quarter wise performance of TATA Motors and M&M scrip shares. In the first quarter (Q1) the both scrips prices are normal and those prices are decreased in the second quarter. And the prices of scrips down from Rs.709.22 to Rs.687.65 and Rs.737.07 to Rs.726.66 respectively. In third quarter both scrips prices are increased. And those prices are high compared to Q1 and Q2 prices. In the last quarter again the prices decreased in both automobile scrips from Rs.750.89 to Rs.703.88 and Rs.753.98 to Rs.685.85 respectively.Graph 4.p3 SHARE PRICE PERFORMANCE OF PHARMACUETICAL SECTOR FOR SELECTED SCRIPS IN 2011-12TABLE-4.16

Month wise CIPLA share price performance

Month wiseAverage Price


in percentage (%)

Aprill11220.87--

May11210.98- 4.48

June11214.18+ 1.52

July11204.66- 4.45

August11179.91- 12.09

September 11174.94- 2.76

October 11186.29+ 6.48

November 11181.28- 2.69

December 11204.43+ 12.77

January12199.56- 2.38

Feb 12185.57- 7.01

March 12206.74+ 11.40

Source: www.nseindia.comAnalysis of the table: The above table shows the monthly average share prices of Cipla for the year 2011 12.

In this scrip the price falls from Rs.220.87 to Rs.206.74.

In the month of December-11 Ciplas scrip price percentage increased 12.77% and lowest increase in the month of June-11 i.e. 1.52%.

The scrip price percentage in the August highly decreased i.e. 12.09% and least decrease in the month of January-08 (2.35%).TABLE-4.17

Quarter wise CIPLA share price performanceQuarterAverage Price


Q1( April-June)215.34--

Q2 (July-Sept)186.50- 13.39

Q3 (Oct-Dec)190.66+ 2.23

Q4 (Jan-Mar)197.29+ 3.47

Formation:The above table is formed from the previous table having the average monthly prices of CIPLA. In that, the average prices of every three months have taken.Crucks of the table:

The above table shows the average quarter wise performance of Cipla scrip during the year 2007 08.

From Q1 to Q2 sudden fall occurred in the scrip price percentage i.e. -13.39% (Rs.215.34 to Rs.186.50). This is the highest decrease in this year.

The scrip prices increased in Q3 and Q4. Those prices are Rs.190.66, Rs.197.29 respectively.

The overall price of the scrip decreased from Rs.215.34 to Rs.197.29 in this financial year 2011 12.TABLE-4.18

Month wise RANBAXY share price performance



in percentage (%)

Aprill11349.72--

May11391.41+ 11.92

June11366.81- 6.28

July11360.40- 1.75

August11368.75+ 2.32

September 11413.30+ 12.08

October 11427.69+ 3.48

November 11415.91- 2.75

December 11407.89- 1.93

January12387.81- 4.92

Feb 12396.53+ 2.25

March 12447.61+ 12.88



The above table shows the monthly average prices of Ranbaxy scrip during the year 2011 12.

In the month of March-08 the scrip price percentage highly increased i.e. +12.88%.

The lowest price percentage of scrip occurred in the month of July-11 i.e. 1.75%.

The overall scrip price of Ranbaxy is increased from Rs.349.72 to Rs.447.61.TABLE-4.19

Quarter wise RANBAXY share price performance




Q2(July-Sept)380.81+ 3.11

Q3(Oct-Dec)417.16+ 9.54

Q4(Jan-Mar)410.65- 1.56

Formation:The above table is formed from the previous table having the average monthly prices of RANBAXY. In that, the average prices of every three months have taken.Crucks of the table:

The above table shows the average quarter wise performance of Ranbaxy scrip during the year 2011 12.

In all the quarters except last quarter (Q4) the scrip price increased and the highest increase in Q3 i.e. + 9.54% and lowest increase in Q2 i.e. + 3.11%.

In the last quarter the scrip price decreased from Rs.417.16 to Rs.410.65 i.e.

-1.56%

The overall scrip price increased from Rs.369.31 to Rs.410.65. It reflects the better performance of company in this year.TABLE-4.20

Quarter wise Comparison between CIPLA and RANBAXY

QuarterCIPLA Average Price

(in Rs.)RANBAXY Average Price

(in Rs.)

Q1(April-June)215.34369.31

Q2(July-Sept)186.50380.81

Q3(Oct-Dec)190.66417.16

Q4(Jan-Mar)197.29410.65

Crucks of the table: The above table shows the CIPLA and RANBAXY scrips average quarter prices in the year 2011 12.

In the Cipla scrip price, compared to Q1 to Q2 the price of scrip decreased. But the Ranbaxy scrip price was decreased.

Except Q1 in all quarters (Q2, Q3 & Q4) of Ciplas scrip, prices were decreased and except last quarter in all first three quarters (Q1, Q2 & Q3) of Ranbaxys prices are increased.

In the overall the Ciplas price is decreased and the Ranbaxys price increased in the pharmacy sector.Graph 4.P 4

SHARE PRICE PERFORMANCE OF PETROLLIUM SECTOR FOR SELECTED SCRIPS IN 2011-12TABLE-4.21Month wise RPL share price performance



In percentage (%)

Aprill1175.51--

May1190.90+ 20.38

June1199.74+ 9.72

July11109.20+ 9.48

August11111.64+ 2.24

September 11136.80+ 22.54

October 11180.94+ 32.27

November 11221.42+ 22.37

December 11221.48+ 0.03

January12189.78- 14.31

Feb 12164.08- 13.54

March 12159.00- 3.09


The above table shows the monthly average prices of scrip RPL in the year 2011 12. The price of scrip percentage is highly increased in the month of October-11 i.e. +32.27% and lowest increase in the month of December-11 i.e. +0.03%. The price of scrip decreased highly in the month of January-12 i.e. 14.31% and lowest decrease in the month of March-08.TABLE-4.22

Quarter wise RPL share price performance




Q2(July-Sept)119.21+ 34.38

Q3(Oct-Dec)207.94+ 74.43

Q4(Jan-Mar)170.95- 17.78

Formation:The above table shows the average prices of every quarter which was formed from the previous table of average monthly prices of RPL.

Crucks of the table: Compared to first Q4 to second Q2 the scrip price increased +34.38% respectively.

In the third quarter the highest increase occurred i.e. +74.43% of scrip price.

In all the first three quarters the price of scrip is increased from Rs.88.71 to Rs.207.94Rs respectively.

In the last quarter the scrip price decreased from Rs207.94 to Rs.170.95 i.e.-17.78%

The overall performance of scrip in this year increased from Rs.88.71 to Rs.170.95, it is almost double the scrip price.TABLE-4.23

Month wise HINDPETRO share price performance



in percentage (%)

Aprill11256.38--

May11290.52+ 13.32

June11271.72- 6.47

July11259.74- 4.41

August11241.17- 7.15

September 11247.49+ 2.62

October 11250.13+ 1.06

November 11274.11+ 9.58

December 11317.91+ 15.97

January12319.36+ 0.46

Feb 12272.23- 14.76

March 12271.89- 0.12

Source: www.nseindia.comAnalysis of the table: The above table shows the monthly average prices of HINDPETRO scrip during in 2011- 12 year.

In this scrip the highest price percentage increase in the month December-11 i.e. +15.97% and lowest percentage increased in the month October-11 i.e. +1.06%.

The highest percentage decrease in the month Feb-12 i.e. -14.76% and lowest percentage decreased in the month March-12 i.e. -0.12%.

The overall scrip price constantly increased from Rs.256.38 to Rs.271.89 in the year respectively.

TABLE-4.24

Quarter wise HINDPETRO share price performanceQuarterAverage Price



Q2(July-Sept)249.46- 8.57

Q3(Oct-Dec)280.71+ 12.52

Q4(Jan-Mar)287.82+ 2.53

Formation:The above table is formed from the month wise average prices of HINDPETRO scrip the above table shows the quarter wise prices of scrip.

Crucks of the table: The above table shows the average quarter price of HINDPETRO scrip in the year 2011-12.

Compare from Q4 to Q2 the scrip price is decreased -8.57% this quarter period only the price decreased in all quarters the scrip price increased.

Compared to Q2 to Q3 the highest price increased from Rs.249.46 to Rs.280.71 i.e. 12.52% respectively.

In the last quarter the scrip price increase 2.53% and the overall scrip price is increased from Rs.272.87 to Rs.287.82 respectively.TABLE-4.25

Quarter wise Comparison between RPL and HINDPETRO

QuarterRPL Average Price

(in Rs.)HINDPETRO Average Price

(in Rs.)

Q1(April-June)88.71272.87

Q2(July-Sept)119.21249.46

Q3(Oct-Dec)207.94280.71

Q4(Jan-Mar)170.94287.82

Crucks of the table: The above table shows the average quarter prices of RPL & HINDPETRO scrips in the year 2011-12.

In the RPL scrip except quarter Q4 in all the first three Quarters (Q1, Q2, Q3) the scrip price increased from Rs.88.71 to Rs.207.94 respectively.

In the HINDPETRO scrip except second quarter (Q2), in all the quarter the scrip prices increased i.e. Rs.272.87 to Rs.287.82 respectively.

But compared to both scrip the RPL shows better performance than HINDPETRO. Because the RPL scrips price increased almost more than double the price in the year starting price (Rs.88.71 to Rs.170.94) Graph 4.P 5

SUMMARY&

CONCLUSIONS

FINDINGS

A stock exchange (or) share market is a corporation (or) mutual organization, which provides trading facilities for stock brokers & traders to trade stocks and other securities.

During the study period 21 stock exchanges are functioning in India.

The business days of stock exchange are Monday to Friday & excluding the holidays.

Out of all stock exchanges NSE (National Stock Exchange) is the world 3rd largest stock exchange in term of the no. of transactions.

The Nifty index is well diversified 50 stock indexes accounting for 22 sectors of the economy. It is a simplified tool that helps investors &ordinary people like to understand what is happening in stock market & by extension, the economy. If the Nifty index performs well, it is a signal that companies in India are performing well & consequently that the country is doing well.

In the Nifty 50 index the market capitalization of all companies excess of 500 each.

The shares of nifty 50 indexes called Blue-chip shares. Generally Blue chip shares have been trade long time & have a history returning solid profits which means regular dividend for their share holders and they expected to contribute sustained growth in the future also.

NSE has classified the scrips listed on it into A, B1, B2, f, G & Z groups.

Among all groups A group listed companies are having well past record & regular dividend paid to their share holders. The Nifty-50 Blue chip companies are comes under this group category.

Mainly there are 8 types of shares which are Blue chip shares. Defensive shares, Growth shares, Cyclic & Non cyclic shares, turn around shares, Active shares, Alpha shares, and Sweat shares.

CONCLUSIONS

The first elected sector i.e. Software sector, in that INFOTECH & TCS scrips have been taken. Those scrip prices are decreased in this financial year. Because of this period the Indian stock markets are growing very fast and the NSE Nifty and BSE Sensex indexes are touching bench mark of their positional points. Another thing is during this period the rupee value strengthens compared to dollar value.

The second selected sector is banking sector, in that ICICI Bank and SBIN scrips have been taken. These scrip prices are increased from April-11 to January-12 and it reaches to the bench mark of its scrip prices and after the prices of scrip fell down.

The third selected sector is Automobile sector, in that TATA MOTORS and M & M scrips have been taken. And the scrip prices are increased slightly and constantly moving from April-11 to January-12 because of in this period more foreign competitors are entered in our country. And after January-12 the prices of scrips decreased slowly.

The fourth selected sector is Pharmaceuticals sector. In this CIPLA and RANBAXY scrips have been taken. In these scrips CIPLA scrip price is slightly decreased (from Rs.220.87 to Rs.206.74). But the RANBAXY scrip price is increased in every month and every quarter. Because in this period RANBAXY stake is buying by the international Pharmaceutical firm i.e. Dichishynco.

The last selected sector is Petroleum Refineries sector. In that RPL (Reliance Petroleum Limited) and HINDPETRO scrips have been taken. And the both scrip prices are increased. But in the RPL scrip price highly increased in the December-11 it reached from Rs.75.51 to Rs.221.48 and the HINDPETRO scrip price also increased in December-11 firm Rs.256.38 to Rs.317.91. RPL compared to HINDPETRO, the RPL scrip price double increased. Because of Reliance find & publish the petroleum are in Andhra Pradesh at K-G basin.SUMMARY This project is done to check the blue-chip shares performance in certain sectors like banking, software, petroleum, pharmaceutical, automobile etc. Here the monthly, quarterly prices are taken into consideration in order to compare it with the other competitive company.

The data of 2011-2012 share prices have given the theoretical aspects of shares like definition, types, share prices of certain selected companies etc. It also includes about the Religare securities organization, its establishment, branches, milestones etc which helps in evaluating their performances. It consists of analysis, interpretation, findings, summary, conclusions, and suggestions.SUGGESTIONS1. It is advised to the investor to make their investments in the pharmaceutical sector (CIPLA & RANBAXY) as sectors performance that is found to be greater (higher) as compared to the other sectors in the NSE.

2. It is also observed that the pharmacy industry is the only industry which has shown growth in times of recession when all the other sectors were underperformed during the period.

3. Try to create more transparency in trading issues

4. Try to create awareness in general public

5. It is good to diversify the investment in different proportion in all the sectors in order to avoid risk.

BIBLIOGRAPHY

BIBLIOGRAPHY

BOOKS:Dun and Bradstreet, financial risk management, delhi, THM-2007

Kene.M.Stulz, Risk management & Derivatives Thomson South Western, 2003

David Dubofsky & Thomson, risk management, Derivatives valuation, Oxford University press 2003

John C Hull, Options, Futures and other derivatives

Fishcher & Jordan, Futures & Options, Mc Graw Hill, 2006 Bharathi V.Pathak, Indian financial systemVohra & Bagri ,Futures and option M.Y.Khan,Financial services

Websites: www.nseindia.com www.money.rediff.com www.religare.in www.religaresecurities.com www.google.com

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