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SUBMITTED BY:RITIKA NATHANI-E (18)PRAMOD SINGH E (26)
NIDHI THAPA E (30)
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y Today, all players in business face the interest andthe impact of different people and groupings.Especially larger corporations have to care not only for the needs of their direct owners, but also of various other groups, like employees , public
interest groups like environmental organizations,strategic partners, journalists or public monitoringbodies.
y When it comes to important corporate decisions, it
is necessary to know about the expectations of different stakeholders and to determine, to whatextend they could and would exert an influence.
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y Retail investors would fall in category B. therefore it isadvisable to keep them informed about important
matters.
y Institutional investors and legislative bodies fall incategory C.
y Promoters and owners fall in category D.
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EXPECTATIONS AND INFLUENCE OFRETAIL INVESTORS
RELIANCE GROUP
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About Reliance Textilesy Dhirubhai started his first textile mill at Naroda,
in Ahmedabad in the year 1966.y Dhirubhai started the brand "Vimal - On ly Vimaly In the year 1975, a Technical team from the World
Bank visited the Reliance Textiles' Manufacturingunit.
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Reasons for launching landmarkIPO
y Calculated that further expansion especially into related sectors would
depend on access to a cheap source of capital.
y Cut off from funding from the Indian
government.y In 1977, Ambani launched Reliance Textile
Industries' initial public offering (IPO).
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H ow did it goDhirubhai was able to convince large number of small investors from rural Gujarat.
Managed to convince a large number of first-timeretail investors to invest in Reliance.The IPO was raised with the help of a BillionaireInvestment Banker Yaggi-Bhai Kesarwani.
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Resulty More than 58,000 investors from various parts of India
subscribed to Reliance's IPO in 1977.y The IPO, of 2.8 million shares, raised $1.8 million, and was considered among the largest in India at the time.y Reliance IPO oversubscribed by 72 times its value.
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Resulty Reliance Industries was the first private sector
company whose Annual General Meetings were held
in stadiums.y Ambani's net worth was estimated at about Rs1 billion
by early 1980s.y Dhirubhai Ambani awarded with starting the equity
cult in India.
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Resulty By circumventing the traditional reliance on the state
for capital investment, Ambani sparked a revolution in
India.y Created one of the worlds largest shareholder family.y Credited for setting the stage for the country's
emergence as a major regional industrial center.
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Result..y As of December 2010 Reliance industries has the
highest market capitalization and is known for giving
high returns to it s investors.
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EXPECTATION AND INFLUENCE OFEMPLOYEES
INFOSYS TECNOLOGIES
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About InfosysIT bellwether Infos y s Techno log ies is the first tocome out with its quarterly numbers signalling the
start of the results season and also setting the tone forthe direction of the stock market.It s a tradition that has been followed religiously,quarter after quarter for the past many years.
Is known to set the tone for the earnings season by beating market expectations and its own guidance.
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y However, since last few quarters Infosys has beengiving cautious outlook and guidance for the
forthcoming quarters, as its key markets the US andthe Europe are still reeling under the pressure of slowdown and high sovereign debt concerns that couldimpact the industry growth.
y
The IT bellwether company has posted a consolidatednet profit at Rs.1780 crore, which lagged by 40-45 crorefrom market expectations , while the company logged agrowth of 2.48% on quarter on quarter basis.
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y According to the market analysts the revenues havefallen short by about Rs.100 crore suggesting that the
actual growth rates have below markets expectations.y The stock was trading 3.7 per cent lower on the BSE.y In terms of revenue guidance, the company revised its
revenue upwards for the entire year from Rs. 27,170
crore to Rs. 27,481 crore.y The earnings per share (EPS) for the year was revised
upwards from Rs. 117 to Rs. 118.90.
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y F or the Q4 ending March 31, the company expects therevenues to be in the range of Rs. 7157- Rs. 7,230 crore,
while it anticipates the revenue for the full year endingMarch 31, 2011, in the range of Rs.27,408- Rs.27,481crore.
y The Sensex fell 351 points to 19,183 and the Nifty
declined 111 points to 5,752.y The villain today was IT bellwether Infosys that fell 4.8per cent costing the Sensex a whopping 100 points.
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y Infy emerged as the biggest loser on the Sensex. It alsoaffected other frontline IT stocks. HCL Tech declined 3
per cent, Wipro fell 2.7 per cent and TCS closed 1 percent lower.y Banking stocks tanked 3.5 per cent. SBI and ICICI
Bank fell 3.9 per cent. HD F C Bank fell 2.9 per cent
while HDF
C declined 2 per cent. The four stockstogether contributed close to 150 points on thedownside on the Sensex.
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y All other sectoral indices closed in the red. Somebuying was, however, seen in realty stocks and they
closed half a per cent higher. DLF
rose 0.6 per cent.y Tata Motors, ONGC and Reliance Comm were the only other stocks to end in green out of the Sensex .
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y F or at least a few days capital markets follow the cuesgiven by the financial results
y
Lot of money pumped in the company s stock by theforeign funds if the results are goody Positive or negative results of a bellwether company
foretell the results of the smaller companies of the
sectory F or e.g. less than expected profits for Infosys in the
latest quarter lead to a sharp drop in its share prices
EFFECTS OF FINANCIAL RESULTS
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y F orecasts enable various stakeholders likeshareholders, investors, creditors to gauge the future
performance of the company y Positive forecasts lead to greater amount of long terminvestments
y A negative forecast may scare the markets and trigger a
bear run in the capital markets
EFFECTS OF FORECASTS
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y Investment markets run on the leads given by thefinancial results
y
Positive financial results are the harbinger of higherinvestments for a company and vice versay Persistently poor financials often lead to a company
being shunned by the investors
EFFECTS ON INVESTMENT
MARKETS
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TH ANK YOU