Professional Documents
Culture Documents
The report encompasses the project undertaken with Edelweiss Financial Securities Ltd
under the guidance of Mr. Om Sadani as part of Summer Internship.
It gives the details of what is National Stock Exchange (N.S.E) and Bombay Stock Exchange
(B.S.E) actually means. It also gives a brief about Edelweiss Financial Securities Ltd. The
report contains the details of the work performed at the Edelweiss and some responsibilities
under taken.
The report takes into consideration the following parameters i.e.:
Equity Research
Daily Market Analysis Report
Daily Sector Comparison Report
It provides with the basic of how online trading is done. It also gave a brief introduction to
Indian Stock markets and its comparison with the international market. It also provided
information on global markets which is being highlighted in this report.
Through this project we also came to know about the comparison between the sectors for
example in this project comparison between Banking and IT sector have taken in to
consideration. We also learned about option, futures, forwards and swaps. This project also
highlights the behavior of investors towards a particular sector in BSE and NSE. This project
gives us information about the how volatile ours share market is and how the trend of a
particular sector and Equity Stock changes in a given period. This project also highlights
different sectors. Through this project we also came to known about portfolio management
services.
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Company Profile
Edelweiss Tokio Financial Services
Edelweiss Tokio Life Insurance is a new generation Insurance company, set up with a start up
capital of INR 550 Crores, thereby showing our commitment to building a long term sustainable
business focused on a consumer centric approach.
The company is a joint venture between Edelweiss Financial Services, one of India's leading
diversified financial services companies with business straddling across Credit, Capital Markets,
Asset Management, Housing finance and Insurance and Tokio Marine Holdings Inc, one of the
oldest and the biggest Insurance companies in Japan now with presence across 39 countries
around the world.
As a part of the companys corporate philosophy of customer centricity, our products have been
developed based on our understanding of Indian customers diverse financial needs and help them
through all their life stages
Since its inception in 1996, Edelweiss has seamlessly grown into a large diversified
financial services organization offering businesses ranging from Credit, Capital Market,
Asset management, Housing Finance and Insurance. Currently, the groups networth is in
excess of INR 2,800 Crores. Over the last decade, Edelweiss revenue has grown at a CAGR
of 63% and net profit has grown at a CAGR of 76% (till the end of FY 11).
Present across 308 offices in 140 cities, the group, with over 2800 employees, and services
a client base of more than 3,50,000 (Sept 11).
The Groups core brand philosophy, Ideas Create, Values Protect is translated into an
approach that is led by entrepreneurship and creativity, protected by intellectual rigour,
research and analysis. Edelweiss has been recognized as a Business Super brand in the year
2011 by Super Brands India, testimony to the reputation enjoyed by the brand.
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Tokio Marine
Tokio Marine Holdings Inc, the holding company for Tokio Marine group is one of the
oldest and biggest Insurance companies in Japan; with interests in Life, Non-Life, and ReInsurance, it has a presence in 427 cities across 39 countries around the world.
The company has over 130 years of operational history in the Non-Life sector while it has
been in Life Insurance since 1996. It has a presence in Japan, China, Singapore, Malaysia
and Thailand.
The Group has booked revenues of INR 1,77,650 Crore and Net Income of INR 3,884
Crore.
In Life Insurance its Gross Written Premium (GWP) is over INR 31,834 Crore.
A highly respected company around the world, Tokio Marine adheres to Japanese high
standards of quality and a robust corporate governance and risk management framework.
Tokio Marine has a successful track record of building business in developing and
developed markets due to its superior capability of developing products based on research
and consumer understanding.
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Investment Banking
Institutional Broking
Wealth Management
Financial Planning
Asset Management
Mutual fund
Alternative asset advisory
Insurance
Edelweiss tokio life
Credit
Corporate credit
Retail credit
Housing Finance
Home lones
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LITERATURE REVIEW
The Indian stock market provides a unique perspective for analyzing comovements and stock
market integration because of its burgeoning economy and its subsequent linkages to other
economies. For instance, Modi et al.(2010) examined the stock market indices of India, Hong
Kong, China, Mexico, Brazil, the UK, and the United States from July 1, 1997, to June 30, 2008.
Using a multivariate analysis consisting of co-integration and principal component analysis, they found that
low correlations exist between Indian stock markets and Mexico, the UK ,and the United States. Modi et
al. also found that the lowest correlations exist between the India (SENSEX) and U.S.
(NASDAQ) stock exchanges.
The implications are that investors can diversify their portfolios by investingin stocks listed on
the SENSEX and NASDAQ simultaneously. Wong et al. (2004) observed this relationship by evaluating the
long run and short run relationship and linkages between the Indian Stock Exchange (BSE 200) and
the United States (S&P 500), Japan (Nikkei 225), and UK(FTSE 100) from January 1, 1991,
to December 31, 2003. Wong et al. found that the Indian stock market isintegrated with
developed markets and sensitive to dynamics in these markets in the long run. The researchers also found
that short-run stock returns in the United States and Japan Granger cause Indian stock
markets but not the opposite. Granger causality is a technique that examines the relationship
between two or more time series by examining whether times series are co-integrated over
both the short and long run. Valadkhani, Chancharat, and Harvie (2008) studied the
relationships between the stock market returns of 13 countries using principle component
analysis.
Monthly data from 1987 to 2007 was examined for correlations using Morgan Stanley
Capital International Database. Valadkhaniet al. found that high correlations exist between
countries located in the same geographic region primarily Asia. Additionally, a correlation were found to
be high in developing countries as well. These findings suggest that geographic and economic development
do matter with respect to comovements of stock returns and has implications for financial portfolio
diversification and reducing systemic risk. In other words, high correlations depict less
diversification opportunities. The implications are that investors should seek diversification
opportunities where correlations are low. Likewise, Jin (2005) observed this relationship
between Shanghai, Hong Kong, and Taiwan markets. Daily, weekly, and monthly data were
retrieved from three indices in host countries from July 1997 to December 2001.The findings revealed
that the Hong Kong and Taiwan stock markets are highly correlated while the correlations among
Hong Kong, Taiwan, and Shanghai were not, even though economic integration was shown
by examining trade.
The researcher further suggests that the Chinese government avoid interfering with the
market and allow the market to perform accordingly. He also found that thelack of correlation
among Shanghai, Hong Kong, and Taiwan depicts that investors are able to diversify their portfolios by
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investing in Shanghai and Hong Kong or Shanghai and Taiwan stock markets simultaneously .Economic
integration allows investors to diversify their portfolios. However, economic integration is not the only factor
that affects co-movements.
Global events and financial crises also affect comovements. For instance, I. Meric, Ratner,
Nygren, and Gulser (2007) compared the comovements of seven Latin American counties
with the U.S. and Canadian equity markets 5 years before September 11, 2001, and 5 years
after September 11, 2001, using maximum likelihood, principal component analysis (PCA),
and Granger causality. They found that equity markets changed significantly pre-September
11 and post-September 11. The PCA indicated that all nine equity markets changed after
September 11. I. Meric et al. also found Granger causality depicted that the lead/lag
relationship changed significantly after September 11. I. Mericetal. found that diversification
benefits diminished after September 2001in these stock markets and reduced the advantages
of global portfolio diversification.
Article by
International Journal of Business and Social Science Vol. 3 No. 3; February 2012
COMOVEMENTS AND STOCK MARKET INTEGRATION BETWEEN INDIA AND ITS
TOPTRADING PARTNERS: A MULTIVARIATE ANALYSIS OF INTERNATIONAL
PORTFOLIODIVERSIFICATION
Alan Harper, Ph.D.
College of Business South University Virginia Beach, Virginia 23464USA
Zhenhu Jin, Ph.D.
College of Business Valparaiso University Valparaiso, Indiana 46385USa
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In an industry plagued with skepticism and a stock market increasingly difficult to predict
and contend with, if one looks hard enough there may still be a genuine aid for the Day
Trader and Short Term Investor.
The price of a security represents a consensus. It is the price at which one person agrees to
buy and another agrees to sell. The price at which an investor is willing to buy or sell depends
primarily on his expectations. If he expects the security's price to rise, he will buy it; if the
investor expects the price to fall, he will sell it. These simple statements are the cause of a
major challenge in forecasting security prices, because they refer to human expectations. As
we all know firsthand, humans expectations are neither easily quantifiable nor predictable.
If prices are based on investor expectations, then knowing what a security should sell for (i.e.,
fundamental analysis) becomes less important than knowing what other investors expect it to
sell for. That's not to say that knowing what a security should sell for isn't important--it is.
But there is usually a fairly strong consensus of a stock's future earnings that the average
investor cannot disprove
Fundamental analysis and technical analysis can co-exist in peace and complement each
other. Since all the investors in the stock market want to make the maximum profits possible,
they just cannot afford to ignore either fundamental or technical analysis.
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Sub-Objectives:.
a) To understand the movement and performance of stocks.
b) Comparison between banking & IT sector.
c) To recommend increase/decrease of investment in a particular security
The Bombay Stock Exchange (BSE) (Bombay hare Bzar) (formerly, The Stock
Exchange, Bombay) is a stock exchange located on Dalal Street, Mumbai and is the oldest
stock exchange in Asia. The equity market capitalization of the companies listed on the BSE
was US$1 trillion as of December 2011, making it the 6th largest stock exchange in Asia and
the 14th largest in the world The BSE has the largest number of listed companies in the
world.
As of March 2012, there are over 5,133 listed Indian companies and over 8,196 scrips on the
stock exchange, the Bombay Stock Exchange has a significant trading volume. The BSE
SENSEX, also called "BSE 30", is a widely used market index in India and Asia. Though
many other exchanges exist, BSE and the National Stock Exchange of India account for the
majority of the equity trading in India. While both have similar total market capitalization
(about USD 1.6 trillion), share volume in NSE is typically two times that of BSE
BSE Limited is the oldest stock exchange in Asia What is now popularly known as the BSE
was established as "The Native Share & Stock Brokers' Association" in 1875.
Over the past 135 years, BSE has facilitated the growth of the Indian corporate sector by
providing it with an efficient capital raising platform.
Today, BSE is the world's number 1 exchange in the world in terms of the number of listed
companies handled through its electronic trading system. And it is in the top ten of global
exchanges in terms of the market capitalization of its listed companies (as of December 31,
2009). The companies listed on BSE command a total market capitalization of USD Trillion
1.28 as of Feb, 2010.
BSE is the first exchange in India and the second in the world to obtain an ISO 9001:2000
certification. It is also the first Exchange in the country and second in the world to receive
Information Security Management System Standard BS 7799-2-2002 certification for its BSE
On-Line trading System (BOLT). Presently, we are ISO 27001:2005 certified, which is a ISO
version of BS 7799 for Information Security.
The BSE Index, SENSEX, is India's first and most popular Stock Market benchmark index.
Exchange traded funds (ETF) on SENSEX, are listed on BSE and in Hong Kong. Futures and
options on the index are also traded at BSE. (over 4900). It is the world's 5th most active in
terms of number of transactions
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Hours of operation
Session
Beginning of the Day Session
Pre-open trading session
Trading Session
Position Transfer Session
Closing Session
Option Exercise Session
Timing
8:30 - 9:00
9:00 - 9:15
9:15 - 15:30
15:30 - 15:50
15:50 - 16:05
16:05 -
The hours of operation for the BSE quoted above are stated in terms the local time (GMT +
5:30). BSE's normal trading sessions are on all days of the week except Saturday, Sundays
and holidays declared by the Exchange in advance.
History
The Bombay Stock Exchange is the oldest exchange in Asia. It traces its history to the 1850s,
when four Gujarati and one Parsi stockbroker would gather under banyan trees in front of
Mumbai's Town Hall. The location of these meetings changed many times, as the number of
brokers constantly increased. The group eventually moved to Dalal Street in 1874 and in
1875 became an official organization known as 'The Native Share & Stock Brokers
Association'.
In 1956, the BSE became the first stock exchange to be recognized by the Indian Government
under the Securities Contracts Regulation Act. The Bombay Stock Exchange developed the
BSE SENSEX in 1986, giving the BSE a means to measure overall performance of the
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exchange. In 2000 the BSE used this index to open its derivatives market, trading SENSEX
futures contracts. The development of SENSEX options along with equity derivatives
followed in 2001 and 2002, expanding the BSE's trading platform. Historically an open
outcry floor trading exchange, the Bombay Stock Exchange switched to an electronic trading
system in 1995.
It took the exchange only fifty days to make this transition. This automated, screen-based
trading platform called BSE On-line trading (BOLT) currently has a capacity of 8 million
orders per day. The BSE has also introduced the world's first centralized exchange-based
internet trading system, BSEWEBx.co.in to enable investors anywhere in the world to trade
on the BSE platform. The BSE is currently housed in Phiroze Jeejeebhoy Towers at Dalal
Street, Fort area.
Timeline
Following is the timeline on the rise of the SENSEX through Indian stock market history.
1830's Business on corporate stocks and shares in Bank and Cotton presses started in
Mumbai.
1860-1865 Cotton price bubble as a result of the American Civil War.
1870 - 90's Sharp increase in share prices of jute industries followed by a boom in tea stocks
and coal
1978-79 Base year of SENSEX, defined to be 100.
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8 January 2008 The SENSEX peaks. It crossed the 21,000 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. However, it later fell back due to profit booking.
13 June 2008 The SENSEX closed below 15,200 mark, Indian market suffer with major
downfall from January 21, 2008
25 June 2008 The SENSEX touched an intra day low of 13,731 during the early trades, then
pulled back and ended up at 14,220 amidst a negative sentiment generated on the Reserve
Bank of India hiking CRR by 50 bps. FII outflow continued in this week.
2 July 2008 The SENSEX hit an intra day low of 12,822.70 on July 2, 2008. This is the
lowest that it has ever been in the past year. Six months ago, on January 10, 2008, the market
had hit an all time high of 21206.70. This is a bad time for the Indian markets, although
Reliance and Infosys continue to lead the way with mostly positive results.
6 October 2008 The SENSEX closed at 11801.70 hitting the lowest in the past 2 years.
10 October 2008 The SENSEX today closed at 10527, 800.51 points down from the previous
day having seen an intraday fall of as large as 1063 points. Thus, this week turned out to be
the week with largest percentage fall in the SENSEX.
19 October 2010 BSE introduced the 15-minute special pre-open trading session, a
mechanism under which investors can bid for stocks before the market opens. The
mechanism, known as 'pre-open session call auction', lasted for 15 minutes (from 9:00-9:15
am)
5 November 2010 BSE SENSEX crossed the 21000 mark (exactly 21004.96).
27 December 2010 BSE SENSEX is at 20,028.93.
Indices
The launch of SENSEX in 1986 was later followed up in January 1989 by introduction of
BSE National Index (Base: 1983-84 = 100). It comprised 100 stocks listed at five major stock
exchanges in India - Mumbai, Calcutta, Delhi, Ahmedabad and Madras. The BSE National
Index was renamed BSE-100 Index from October 14, 1996 and since then, it is being
calculated taking into consideration only the prices of stocks listed at BSE.
BSE launched the dollar-linked version of BSE-100 index on May 22, 2006. BSE launched
two new index series on 27 May 1994: The 'BSE-200' and the 'DOLLEX-200'. BSE-500
Index and 5 sectoral indices were launched in 1999. In 2001, BSE launched BSE-PSU Index,
DOLLEX-30 and the country's first free-float based index - the BSE TECk Index.
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Over the years, BSE shifted all its indices to the free-float methodology (except BSE-PSU
index). BSE disseminates information on the Price-Earnings Ratio, the Price to Book Value
Ratio and the Dividend Yield Percentage on day-to-day basis of all its major indices. The
values of all BSE indices are updated on real time basis during market hours and displayed
through the BOLT system, BSE website and news wire agencies.
All BSE Indices are reviewed periodically by the BSE Index Committee. This Committee
which comprises eminent independent finance professionals frames the broad policy
guidelines for the development and maintenance of all BSE indices. The BSE Index Cell
carries out the day-to-day maintenance of all indices and conducts research on development
of new indices. 2011 SENSEX is significantly correlated with the stock indices of other
emerging markets.
Awards
The World Council of Corporate Governance has awarded the Golden Peacock Global
CSR Award for BSE's initiatives in Corporate Social Responsibility (CSR).
The Annual Reports and Accounts of BSE for the year ended March 31, 2006 and
March 31, 2007 have been awarded the ICAI awards for excellence in financial
reporting.
It has been cited as one of the world's best performing stock market by Reuters.
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The Human Resource Management at BSE has won the Asia - Pacific HRM awards
for its efforts in employer branding through talent management at work, health
management at work and excellence in HR through technology. Bombay Stock
Exchange - Finance Learners
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Origins
The National Stock Exchange of India was set up by Government of India on the
recommendation of Pherwani Committee in 1991.Promoted by leading Financial institutions
essentially led by IDBI at the behest of the Government of India, it was incorporated in
November 1992 as a tax-paying company. In April 1993, it was recognized as a stock
exchange under the Securities Contracts (Regulation) Act, 1956. NSE commenced operations
in the Wholesale Debt Market (WDM) segment in June 1994. The Capital market (Equities)
segment of the NSE commenced operations in November 1994, while operations in the
Derivatives segment commenced in June 2000.
Purpose
Committed to improve the financial well-being of people.
Vision
To continue to be a leader, establish global presence, facilitate the financial well being of
people.
Values
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Integrity
Teamwork
Markets
Currently, NSE has the following major segments of the capital market:
Equity
Currency futures
Mutual fund
In August 2008 currency derivatives were introduced in India with the launch of Currency
Futures in USD INR by NSE. Currently it has also launched currency futures in euros,
pounds and yen. Interest Rate Futures were introduced for the first time in India by NSE on
31 August 2009, exactly one year after the launch of Currency Futures.
NSE became the first stock exchange to get approval for interest rate futures, As
recommended by SEBI-RBI committee, on 31 August 2009, a futures contract based on 7%
10 Year Government of India (Notional) was launched with quarterly maturities.
Hours
NSE's normal trading sessions. 9:15 AM TO 3:15(3:30) pm
Milestones
June 1995 Introduction of centralised insurance cover for all trading members
May 1998 Promotion of joint venture, India Index Services & Products Limited
(IISL)
May 2002 NSE wins the Wharton-Infosys Business Transformation Award in the
Organization-wide Transformation category
March 2005 India Innovation Award by EMPI Business School, New Delhi
June 2007 NSE launches derivatives on Nifty Junior & CNX 100
March 2008 Introduction of long term option contracts on S&P CNX Nifty Index
December, 2010 NSCCL rated 'CCR AAA' for third consecutive year.
September 2011 Launch of derivatives on CNX PSE and CNX Infrastructure Indices
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December 2011 NSCCL Rated CCR AAA for fourth consecutive year - 28th Dec
2011
March 22, 2012 NSE and India Post start Unique Financial Inclusion Initiative
"Jagruti"
Indices
NSE also set up as index services firm known as India Index Services & Products Limited
(IISL) and has launched several stock indices, including:
S&P CNX 500 (= CNX 100 + 400 major players across 72 industries)
NSE has a number of exchange traded funds. These are typically index funds and GOLD
ETFs. Some of the popular ETF's available for trading on NSE are:
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PSU Bank Goldman Sachs PSU Bank Exchange Traded Scheme (PSUBNKBEES)
Shariah Goldman Sachs S&P CNX Nifty Shariah Index Exchange Traded Scheme
(SHARIABEES)
Infrastructure
(INFRABEES)
Goldman
Sachs
Infrastructure
Exchange
Traded
Scheme
Gold ETFs:
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Debt ETFs:
Certifications
NSE also conducts online examination and awards certification, under its programmes of
NSE's Certification in Financial Markets (NCFM). Currently, certifications are available in
32 modules, covering different sectors of financial and capital markets, both at beginner and
advanced levels. the list of the various modules can be found at the following official site of
NSE India. Branches of the NSE are located throughout India. NSE, in collaboration with
reputed colleges and institutes in India, has been offering a short-term course called NSE
Certified Capital Market Professional (NCCMP) since August 2009, in the campuses of the
respective colleges/ institutes.
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INTRODUCTION
Investing, like marriage, isn't something that should be entered into lightly. Investing in
equities gives high returns but they correspondingly have higher risk also. Before we invest
in a company, there are more than a few things we need to know about it.
Securities Analysis
An analysis of securities and the organization and operation of their markets. The
determination of the risk reward structure of equity and debt securities and their valuation.
Special emphasis on common stocks. Other topics include options, mutual fluids and
technical analysis.
Technical analysis is a method of predicting price movements and future market trends by
studying charts of past market action which take into account price of instruments, volume of
trading and, where applicable, open interest in the instruments.
Fundamental analysis is a method of forecasting the future price movements of a financial
instrument based on economic, political, environmental and other relevant factors and
statistics that will affect the basic supply and demand of whatever underlies the financial
instrument.
Fundamental analysis
Technical analysis
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TECHNICAL ANALYSIS
Technical analysis can be conditionally divided into some main parts such as:
Types of charts
Graphical methods
Analytical methods
Technical analysis is concerned with predicting future price trends from historical price and
volume data. The underlying axiom of technical analysis is that all fundamentals (including
expectations) are factored into the market and are reflected in exchange rates.
A technical analysis is based on three axioms:
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Resistance, on the other hand, is the point at which sellers (bears) take control of prices and
prevent them from rising higher. The price at which a trade takes place is the price at which a
bull and bear agree to do business. It represents the consensus of their expectations.
Support levels indicate the price where the most of investors believe that prices will move
higher. Resistance levels indicate the price at which the most of investors feel prices will
move lower.
Role Reversal
When a resistance level is successfully broken through, that level becomes a support level.
Similarly, when a support level is successfully broken through, that level becomes a
resistance level.
Three Movements
Markets fluctuate in more than one time frame at the same time:
Nothing is more certain than that the market has three well defined movements which fit into
each other.
The first is the daily variation due to local causes and the balance of buying and
selling at that particular time.
The secondary movement covers a period ranging from ten days to sixty days,
averaging probably between thirty and forty days.
The third move is the great swing covering from four to six years.
Bull markets are broad upward movements of the market that may last several years,
interrupted by secondary reactions. Bear markets are long declines interrupted by
secondary rallies. These movements are referred to as the primary trend.
Secondary movements normally retrace from one third to two thirds of the primary
trend since the previous secondary movement.
Daily fluctuations are important for short-term trading, but are unimportant in analysis
of broad market movements.
Various cycles have subsequently been identified within these broad categories.
Primary Movements have Three Phases
The general conditions in the market:
Bull markets
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Rampant speculation dominates the market and price advances are based on hopes
and expectations rather than actual results.
Bear markets
Bear markets start with abandonment of the hopes and expectations that sustained
inflated prices.
Distress selling follows as speculators attempt to close out their positions and
securities are sold without regard to their true value.
Trends
Bull Trends
A bull trend is identified by a series of rallies where each rally exceeds the highest point of
the previous rally. The decline, between rallies, ends above the lowest point of the previous
decline.
Successive higher highs and higher lows.
The start of an up trend is signaled when price makes a higher low (trough), followed by a
rally above the previous high (peak):
Start = higher Low + break above previous High.
The end is signaled by a lower high (peak), followed by a decline below the previous low
(trough):
End = lower High + break below previous Low.
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A bear trend starts at the end of a bull trend: when a rally ends with a lower peak and then
retreats below the previous low. The end of a bear trend is identical to the start of a bull trend.
FUNDAMENTAL ANALYSIS
Fundamental analysis refers to the study of the core underlying elements that influence the
economy of a particular entity. It is a method of study that attempts to predict price action and
market trends by analyzing economic indicators, government policy and societal factors (to
name just a few elements) within a business cycle framework.
I. ECONOMIC ANALYSIS:
POLITICO-ECONOMIC ANALYSIS:
No industry or company can exist in isolation. It may have splendid managers and a
tremendous product. However, its sales and its costs are affected by factors, some of which
are beyond its control - the world economy, price inflation, taxes and a host of others. It is
important, therefore, to have an appreciation of the politico-economic factors that affect an
industry and a company.
c) Capital requirement
d) Government policy
2. THE THREAT OF SUBSTITUTION
New inventions are always taking place and new and better products replace existing ones.
An industry that can be replaced by substitutes or is threatened by substitutes is normally an
industry one must be careful of investing in. An industry where this occurs constantly is the
packaging industry -bottles replaced by cans, cans replaced by plastic bottles, and the like. To
ward off the threat of substitution, companies often have to spend large sums of money in
advertising and promotion.
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Sector analysis
Banking sector
STATE BANK OF INDIA
State Bank of India (SBI) (NSE: SBIN, BSE: 500112, LSE: SBID) is the largest banking
and financial services company in India by revenue, assets and market capitalisation. It is a
state-owned corporation with its headquarters in Mumbai, Maharashtra. As of March 2012, it
had assets of US$360 billion with over 13,577 outlets including 157 overseas branches and
agents globally. The bank traces its ancestry to British India, through the Imperial Bank of
India, to the founding in 1806 of the Bank of Calcutta, making it the oldest commercial bank
in the Indian Subcontinent. Bank of Madras merged into the other two presidency banks
Bank of Calcutta and Bank of Bombayto form the Imperial Bank of India, which in turn
became the State Bank of India. The Government of India nationalised the Imperial Bank of
India in 1955, with the Reserve Bank of India taking a 60% stake, and renamed it the State
Bank of India. In 2008, the government took over the stake held by the Reserve Bank of
India. SBI has been ranked 285th in the Fortune Global 500 rankings of the world's biggest
corporations for the year 2012.
SBI provides a range of banking products through its vast network of branches in India and
overseas, including products aimed at non-resident Indians (NRIs). The State Bank Group,
with over 18,324 branches, has the largest banking branch network in India. SBI has 14 local
head offices situated at Chandigarh, Delhi, Lucknow, Patna, Kolkata, Guwahati (North East
Circle), Bhuwaneshwar, Hyderabad, Chennai, Trivandram, Banglore, Mumbai, Bhopal &
Ahmedabad and 57 Zonal Offices that are located at important cities throughout the country.
It also has 157 branches overseas.
SBI is a regional banking behemoth and is one of the largest financial institutions in the
world. It has a market share among Indian commercial banks of about 20% in deposits and
loans. The State Bank of India is the 29th most reputed company in the world according to
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Forbes Also, SBI is the only bank featured in the coveted "top 10 brands of India" list in an
annual survey conducted by Brand Finance and The Economic Times in 2010
Type
Public
Industry
Founded
1 July 1955
Headquarters
Key people
Pratip Chaudhuri
Products
Revenue
Credit cards, Consumer banking, corporate banking, finance and insurance, investment
banking, mortgage loans, private banking, wealth management
US$ 36.950 billion (2012)
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Profit
Total assets
Total equity
Owner(s)
Government of India
Employees
292,215 (2012)
Jun' 11
Mar' 11
Dec' 10
Promoter
59.40
59.40
59.40
59.40
FII
8.65
10.88
12.80
13.36
DII
18.54
17.45
16.57
15.59
Others
13.41
12.27
11.23
11.65
Total
100.00
100.00
100.00
100.00
Income Statement
(Mar '12)
Quarterly
(Mar '12)
Yearly
Net Sales
28695.50
106521.45
Other Income
5264.04
14351.45
PBDIT
23448.13
94803.91
Net Profit
4050.27
11707.29
Balance Sheet
(Mar '12)
(In Rs Cr)
36 | P a g e
671.04
Net Worth
83951.20
Total Debt
1170652.93
Net Block
5133.87
Investments
312197.61
805918.48
Total Assets
1335519.24
Close Price
52 Week High
2529.70
52 Week Low
1571.10
Returns
BANKS
1) SBI
1 Month
6 Month
1 Year
3 Year
5 Year
-3.85 %
Month
-8.37 %
16.60 %
-10.54 %
9.97 %
51.99 %
3 Year
9.97 %
5 Year
51.99 %
SBI
1 Month
-3.85 %
3 Month
-8.37 %
6 Month
16.60 %
1 Year
-10.54 %
37 | P a g e
SENSEX
NIFTY
-5.8125 %
-5.6667 %
-8.1144 %
-8.0674 %
1.1702 %
2.4565 %
-11.841 %
-10.960 %
11.5341 %
11.2790 %
11.9513 %
16.022 %
INTERPRETATION
The table shows that the SBI stock have provided a better returns to the investors as it
has shown a growth of around 51.99% in 5 years. It shows a very volatile trend, in first
month SBI stock shown a negative trend and it continues to the same till 1 year and then
becomes positive in the 5 th year. This states that it is a long term investment call or long
term investment stock.
ICICI BANK
ICICI Bank Limited (NSE: ICICIBANK, BSE: 532174, NYSE: IBN) is an Indian
diversified financial services company headquartered in Mumbai, Maharashtra. It is the
second largest bank in India by assets and third largest by market capitalization. It offers a
wide range of banking products and financial services to corporate and retail customers
through a variety of delivery channels and through its specialized subsidiaries in the areas of
investment banking, life and non-life insurance, venture capital and asset management. The
Bank has a network of 2,630 branches and 8,003 ATM's in India, and has a presence in 19
countries, including India
The bank has subsidiaries in the United Kingdom, Russia, and Canada; branches in United
States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance
Centre; and representative offices in United Arab Emirates, China, South Africa, Bangladesh,
Thailand, Malaysia and Indonesia. The company's UK subsidiary has established branches in
Belgium and Germany
ICICI Bank was established in 1996 by the Industrial Credit and Investment Corporation
of India, an Indian financial institution, as a wholly owned subsidiary. The parent company
was formed in 1955 as a joint-venture of the World Bank, India's public-sector banks and
public-sector insurance companies to provide project financing to Indian industry The bank
was initially known as the Industrial Credit and Investment Corporation of India Bank,
before it changed its name to the abbreviated ICICI Bank. The parent company was later
merged into ICICI Bank
38 | P a g e
Type
Traded as
Public
BSE: 532174
NSE: ICICIBANK
Industry
Founded
1955
Headquarters
K. V. Kamath
Key people
(Chairman)
Chanda Kochhar
(MD & CEO)
Products
Revenue
Credit cards, Consumer banking, corporate banking, finance and insurance, investment
banking, mortgage loans, private banking, wealth management
US$ 13.812 billion (2011)
39 | P a g e
Profit
Total assets
Total equity
Employees
79,978 (2011)
Website
www.icicibank.com
Jun' 11
Mar' 11
Dec' 10
Promoter
0.00
0.00
0.00
0.00
FII
38.17
38.61
38.62
39.23
DII
25.24
25.14
24.19
23.43
Others
36.59
36.25
37.19
37.34
Total
100.00
100.00
100.00
100.00
Income Statement
(Mar '12)
Quarterly
(Mar '12)
Yearly
Net Sales
9174.64
33542.65
Other Income
2228.46
7502.76
PBDIT
8712.16
31611.93
Net Profit
1901.76
6465.26
Balance Sheet
(Mar '12)
(In Rs Cr)
40 | P a g e
1152.77
Net Worth
60402.86
Total Debt
395664.87
Net Block
4614.69
Investments
159560.04
228680.85
Total Assets
473647.09
Close Price
52 Week High
1111.80
52Week Low
641.00
Returns
BANKS
ICICI
1 Month
-11.02 %
3 Month
-13.48 %
6 Month
9.82 %
1 Year
-27.78 %
3 Year
5.88 %
5 Year
-14.64 %
BANK
ICICI
1 Month
-11.02 %
3 Month
-13.48 %
6 Month
9.82 %
1 Year
-27.78 %
3 Year
5.88 %
5 Year
-14.64 %
BANK
SENSEX
NIFTY
-5.8125 %
-5.6667 %
-8.1144 %
-8.0674 %
1.1702 %
2.4565 %
-11.841 %
-10.960 %
11.5341 %
11.2790 %
11.9513 %
16.022 %
41 | P a g e
INTERPRETATION
The indices have shown volatile trend in past as shown in the table. Sensex and Nifty
both were negative till the 3 month and then becomes positive in 6 month which again shows
am positive trend till the 5th year. This states that the stock currently is performing well and
will provide good returns to investors.
HDFC BANK
HDFC Bank Limited (BSE: 500180, NSE: HDFCBANK, NYSE: HDB) is an Indian
financial services company that was incorporated in August 1994. HDFC Bank is the fifth or
sixth largest bank in India by assets and the second largest bank by market capitalization as of
February 24, 2012. The bank was promoted by the Housing Development Finance
Corporation, a premier housing finance company (set up in 1977) of India. HDFC Bank has
1,986 branches and over 5,471 ATMs, in 996 cities in India, and all branches of the bank are
linked on an online real-time basis. As of 30 September 2008 the bank had total assets of
Rs.1006.82 billion.[3] For the fiscal year 2010-11, the bank has reported net profit of
3,926.30 crore (US$710.66 million), up 33.1% from the previous fiscal. Total annual earnings
of the bank increased by 20.37% reaching at 24,263.4 crore (US$4.39 billion) in 2010-11.[4]
HDFC Bank is one of the Big Four banks of India, along with: State Bank of India, ICICI
Bank and Punjab National Bank.
HDFC Bank was incorporated in 1994 by Housing Development Finance Corporation
Limited (HDFC), India's largest housing finance company. It was among the first companies
to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in
the private sector. The Bank started operations as a scheduled commercial bank in January
1995 under the RBI's liberalisation policies.
Times Bank Limited (owned by Bennett, Coleman & Co. / Times Group) was merged with
HDFC Bank Ltd., in 2000. This was the first merger of two private banks in India.
Shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times
Bank.
In 2008 HDFC Bank acquired Centurion Bank of Punjab taking its total branches to more
than 1,000. The amalgamated bank emerged with a base of about Rs. 1,22,000 crore and net
advances of about Rs.89,000 crore. The balance sheet size of the combined entity is more
than Rs. 1,63,000 crore
42 | P a g e
Type
Public
BSE: 500180
Traded as
NSE: HDFCBANK
NYSE: HDB
BSE SENSEX Constituent
Industry
Founded
August 1994
Headquarters
Key people
Products
Credit cards, consumer banking, corporate banking, finance and insurance, investment
banking, mortgage loans, private banking, private equity, wealth management
Revenue
Profit
43 | P a g e
Total assets
Total equity
Employees
55,752 (2011)
Website
HDFCBank.com
Jun' 11
Mar' 11
Dec' 10
Promoter
23.23
23.28
23.35
23.40
FII
29.30
29.23
28.53
29.37
DII
10.97
11.14
11.61
10.86
Others
36.50
36.35
36.51
36.37
Total
100.00
100.00
100.00
100.00
Income Statement
(Jun '12)
Quarterly
(Mar '12)
Yearly
Net Sales
8007.42
27286.35
Other Income
1529.49
5243.69
PBDIT
6617.00
22502.73
Net Profit
1417.39
5167.07
Balance Sheet
(Mar '12)
(In Rs Cr)
Total Share Capital
469.34
Net Worth
29924.38
44 | P a g e
Total Debt
270552.96
Net Block
2347.19
Investments
97482.91
162397.47
Total Assets
337909.49
Close
200
0
52 Week High
558.00
52Week Low
400.25
Returns
BANKS
HDFC
1 Month
3 Month
6 Month
1 Year
3 Year
5 Year
-2.81%
3.379%
2.018%
-4.29%
17.33%
75.66%
BANK
3 Month
6 Month
1 Year
3 Year
5 Year
HDFC
-2.81%
3.379%
2.018%
-4.29%
17.33%
75.66%
BANK
SENSEX
NIFTY
-5.815 %
-5.666 %
-8.1144 %
-8.0674 %
1.1702 %
2.4565 %
-11.841 %
-10.960 %
11.5341 %
11.2790 %
11.9513 %
16.022 %
INTERPRETATION
45 | P a g e
The above data shows the volatility in HDFC equity stock. In the year 2008 - 2009 It
has fallen and shown negative trend but after that it shows a upward moving curve which
states that the stock is performing well and has provided satisfactory returns to the investors.
The growth up to 75.66008% have been recorded in the current year as compared to the year
2007
INTERPRETATION
According to graph, the ICICI bank equity has fallen more as compared to the SBI
and HDFC and continues to show a negative trend till the current year. The SBI equity stock
is highly volatile as compared to the other two. As compared to year 2007 the SBI stock
grown up to 137.84% in 2010 2011 but currently is fallen down to 67.71%. The HDFC
equity has shown a positive upward moving trend consistently after 2009 till the current year
which states that stock is less volatile.
46 | P a g e
Banking Index
52 week High
11451.21
52 week Low
7766.67
3 Month
6 Month
1 Year
3 Year
5 Year
-9.35%
10.23%
-14.33%
27.30%
47.40%
3 Month
6 Month
1 Year
3 Year
5 Year
-5.81252
-8.11%
1.17%
-11.84%
11.53%
11.95%
3 Month
6 Month
1 Year
3 Year
5 Year
-5.66676
-8.06%
2.45%
-10.96%
11.24%
16.02%
INTERPRETATION
In the long the banking sector have provided the returns on investment was around 47.4050
which is nearer to 50%. This states that the fund invested in banking sector will grow up to
time i.e. 50% in the long run. Further Sensex and nifty both have provided better returns as
compared to the other sectors. As stock banking sector are volatile one must invest for longer
47 | P a g e
period of time. Investor must not get afraid with the volatile trend. As per records the
Banking Sector will provide a better returns in longer duration of investment
IT SECTOR
INFOSYS
Infosys Limited formerly Infosys Technologies Limited (BSE: 500209, NSE: INFY,
NASDAQ: INFY) is an Indian provider of business consulting, technology, engineering and
outsourcing services. Its headquartered in Bangalore, India. It has offices in 30 countries and
development centers in India, US, China, Australia, UK, Canada, Japan and many other
countries
Infosys was co-founded in 1981 by N. R. Narayana Murthy, Nandan Nilekani, N. S.
Raghavan, S. Gopalakrishnan, S. D. Shibulal, K Dinesh and Ashok Arora after they resigned
from Patni Computer Systems. Today, Infosys is a global leader in the "next generation" of IT
and consulting with revenues of billion (FY12). Infosys ranked among the most innovative
companies in a Forbes survey, leading technology companies in a report by The Boston
Consulting Group and top ten green companies in Newsweek's Green Rankings
Infosys was voted India's most admired company in The Wall Street Journal Asia 200 every
year since 2000. The corporate governance practices were recognized by The Asset Platinum
award and the IR Global Rankings.
Infosys was also ranked as the 15th most trusted brand in India by The Brand Trust Report
In 1996, Infosys established the Infosys Foundation, operating in the areas of health care,
social rehabilitation and rural uplift, education, arts and culture. Since then, this foundation
has spread its activities from its headquarters in Karnataka to the Indian states of Tamil Nadu,
Andhra Pradesh, Maharashtra, Kerala, Orissa and Punjab in a phased manner.A dedicated
team at the Foundation identifies programs in the areas of Healthcare, Education, Culture,
Destitute Care and Rural Development
48 | P a g e
Type
Public
Industry
IT services, IT consulting
N. R. Narayana Murthy
Nandan Nilekani
Founder(s)
N. S. Raghavan
S. Gopalakrishnan
S. D. Shibulal
Services
Revenue
Operating income
Profit
Total assets
Total equity
Employees
151,151 (2012)
Divisions
49 | P a g e
Website
www.infosys.com
Sep' 11
Jun' 11
Mar' 11
Dec' 10
Promoter
16.04
16.04
16.04
16.04
FII
36.66
36.88
36.12
36.60
DII
10.71
9.84
9.00
8.43
Others
36.59
37.24
38.84
38.93
Total
100.00
100.00
100.00
100.00
Income Statement
(In Rs Cr)
(Jun '12)
Quarterly
(Mar '12)
Yearly
Net Sales
8909.00
31254.00
Other Income
459.00
1829.00
PBDIT
3261.00
11890.00
Net Profit
2204.00
8470.00
Balance Sheet
(Mar '12)
(In Rs Cr)
Total Share Capital
287.00
Net Worth
29757.00
Total Debt
0.00
Net Block
4061.00
Investments
1409.00
50 | P a g e
23266.00
Total Assets
Close Price
2000
1500
1000
500
0
2994.00
52 Week High
52Week Low
2150.00
Returns
IT
INFOSYS
1 Month
3 Month
6 Month
1 Year
3 Year
5 Year
-0.932%
-15.14%
-6.43%
-12.06%
52.30%
27.05%
INFOSYS
SENSEX
NIFTY
1 Month
3 Month
6 Month
1 Year
3 Year
5 Year
-O.932%
-5.815 %
-5.666 %
-15.14%
-8.1144 %
-8.0674 %
-6.43%
1.1702 %
2.4565 %
-12.06%
-11.841 %
-10.960 %
52.30%
11.5341 %
11.2790 %
27.05%
11.9513 %
16.022 %
INTERPRETATION
51 | P a g e
The Infosys stock has not shown a consistent growth. In the 3rd year it moved up to
52.30% but has fallen down and remained on 27.05% of growth in the current year which
states that the it is not performing well currently as compared to the past years.
52 | P a g e
Type
Public
Industry
IT services, IT consulting
Founded
1968
Founder(s)
JRD Tata
Headquarters
Ratan Tata
Key people
(Chairman)
N. Chandrasekaran
(CEO & MD)
Services
Revenue
Profit
Employees
243,545 (2012)
53 | P a g e
Parent
Tata Group
Website
www.tcs.com
Dec' 11
Sep' 11
Jun' 11
Mar' 11
Promoter
74.08
74.08
74.08
74.05
FII
13.41
12.81
12.80
12.64
DII
7.67
8.10
8.10
8.11
Others
4.84
5.01
5.02
5.20
Total
100.00
100.00
100.00
100.00
Income Statement
(Jun '12)
Quarterly
(Mar '12)
Yearly
Net Sales
11410.65
38858.54
Other Income
169.26
2685.18
PBDIT
3621.11
14070.90
Net Profit
2797.59
10975.98
Balance Sheet
(Mar '12)
(In Rs Cr)
Total Share Capital
295.72
Net Worth
24856.63
Total Debt
96.23
Net Block
4063.62
54 | P a g e
Investments
5688.39
13473.97
Total Assets
24952.86
Close Price
600
400
200
0
1295.25
52 Week High
52Week Low
902.00
Returns
IT
TCS
1 Month
3 Month
6 Month
1 Year
3 Year
5 Year
1.001 %
0.261%
11.63%
7.636%
58.37%
105.84%
TCS
SENSEX
NIFTY
1 Month
3 Month
6 Month
1 Year
3 Year
5 Year
1.001 %
-5.8125
%
-5.666 %
0.261%
-8.1144 %
11.63%
1.1702 %
7.636%
-11.841 %
58.37%
11.5341 %
105.84%
11.9513 %
-8.0674 %
2.4565 %
-10.960 %
11.2790 %
16.022 %
INTERPRETATION
55 | P a g e
In the Long run the TCS equity stock has provided wonderful returns of 105.84 %.
But the graph shows the volatility with steep fall in the year 2009- 2010. Though it has
recovered after that moved up but currently it is not so consistent.
WIPRO
Wipro Limited (formerly Western India Products Limited) (NASDAQ: WIT, NYSE:
WIT, BSE: 507685) is an Indian multinational provider of Information technology (IT)
services, consulting and outsourcing services. It is headquartered in Bangalore, India. As of
2012, the company has over 130,000 employees and a worldwide presence with global
centers across 54 countries
The company operates in four segments: IT products and services, Consumer care and
lighting, Healthcare and Infrastructure engineering
In February 2001, Wipro became the first software technology and services company in India
to be certified for ISO 14001 certification.
[16]
become the first software company to get SEI CMM Level 5 in 2002. Wipro Consumer Care
and Lighting Group entered the market of Compact Fluorescent Lamps, with the launch of a
range of CFL, under the brand name of Wipro Smartlite. As the company grew, a study
revealed that Wipro was the fastest wealth creator for 5 years (1997-2002). The same year
witnessed the launch of Wipros own laptops with Intel's Centrino mobile processor. Wipro
also entered into an exclusive agreement with the owners of Chandrika for marketing of their
soap in select states in India. It set up a wholly owned subsidiary company viz. Wipro
Consumer Care Limited to manufacture consumer care and lighting products.
[25]
In 2004,
Wipro joined the billion dollar club. It also partnered with Intel for i-shiksha. The year 2006
saw Wipro acquire cMango Inc., a US based Technology Infrastructure Consulting firm
Enabler, and a Europe based retail solutions provider.[31] In 2007, Wipro inked a large deal
with Lockheed Martin. It also entered into a definitive agreement to acquire Oki Techno
Centre Singapore Pte Ltd (OTCS) and signed an R&D partnership contract with Nokia
Siemens Networks in Germany. The year 2008 saw Wipros foray into the clean energy
business with Wipro Eco Energy. In April 2011, Wipro signed an agreement with Science
Applications International Corporation (SAIC) for the acquisition of their global oil and gas
information technology practice of the commercial business services business unit. The year
2012 saw Wipro make its 17th acquisition in IT business when it acquired Australian
analytics product firm Promax Applications Group (PAG) for $35 million
56 | P a g e
Type
Industry
IT services, IT consulting
Founder(s)
Headquarters
Bangalore, India
Services
Revenue
Operating income
Total assets
Total equity
Employees
135,920 (2012)
Wipro Consumer Care & Lighting
Divisions
57 | P a g e
Sep' 11
Jun' 11
Sep' 10
Promoter
79.17
79.23
79.36
FII
5.08
5.37
5.28
DII
4.15
3.74
3.52
Others
11.60
11.66
11.84
Total
100.00
100.00
100.00
Income Statement
(In Rs Cr)
(Jun '12)
Quarterly
(Mar '12)
Yearly
Net Sales
8932.60
32053.60
Other Income
-5.10
856.70
PBDIT
1838.10
7270.40
Net Profit
1158.00
4685.10
Balance Sheet
(Mar '12)
(In Rs Cr)
Total Share Capital
491.70
Net Worth
24352.50
Total Debt
5243.20
Net Block
4649.80
Investments
10335.20
14120.60
Total Assets
29595.70
58 | P a g e
453.00
52 Week High
52Week Low
320.50
Returns
IT
WIPRO
1 Month
3 Month
6 Month
1 Year
3 Year
5 Year
3.395%
0.257%
-3.63%
29.92%
-8.06%
-21.81%
WIPRO
SENSEX
NIFTY
1 Month
3 Month
6 Month
1 Year
3 Year
5 Year
3.395%
-5.8125
%
-5.666 %
0.257%
-8.1144 %
-3.63%
1.1702 %
29.92%
-11.841 %
-8.06%
11.5341 %
-21.81%
11.9513 %
-8.0674 %
2.4565 %
-10.960 %
11.2790 %
16.022 %
INTERPRETATION
As compared to the year 2007 the Wipro equity have fallen to negative side and has
not shown any satisfactory results in terms of growth. It has fallen down to -21.8166% which
provided the negative returns to the investors. In the year 2009-10 it has moved up to certain
extent on positive side. But again have shown a downward fall.
59 | P a g e
INTERPRETATION
In the year 2009-2010 the stocks of all three companies have fallen down to the extent
of -61.26% due to global recession and then recovered to the positive side as value of USD
appreciated. As compared to the other two TCS has outperformed and has touched the level
of 122.85 % of growth in the current year, as compared to year 2007.
IT Index
60 | P a g e
52 week High
6362.41
4638.80
52 week Low
Returns of IT Sector
1 Month
3 Month
6 Month
1 Year
3 Year
5 Year
-8.30 %
-6.3510%
-9.80 %
-13.3351%
37.30%
42.40%
3 Month
6 Month
1 Year
3 Year
5 Year
-5.812%
-8.114%
1.1702%
-11.84%
11.53%
11.955%
3 Month
6 Month
1 Year
3 Year
5 Year
-5.66676%
-8.06748%
2.4565%
-10.96%
11.27%
16.02%
INTERPRETATION
The Indices shown that, in the Long run the IT sector provided a return of 42% on investment
in 5 years. Which is lesser than the banking sector? Further the stock are volatile but not
shown a higher growth rate than the Banking. Which means the sector provides a returns but
not as greater as the banking sector
Questionnaire
Que.1. Do you investing in Equity Market?
[ ]Yes
[ ] No
61 | P a g e
INTERPRETATION
As per the survey all 30 observations have invested in the equity market and banking
and IT sector.
10%
[ ] Liquidity
[ ] Other _____________
[ ] Safety
5%
10%
RETURNS
LIQUIDITY
75%
Capital Appreciation
OTHERS
INTERPRETATION
From the total observation 75% do invest in the equity market because of Returns
factor. Which means the Return on Investment factor motivates the maximum investors.
10% of the investors says that they invest for liquidity. 10% of the investors do invest in
equity for capital appreciation and 5% of the investors invest in the market because of the
factors other than listed above.
Que.3. What is the rate of return expected by you from Equity Market in a year?
62 | P a g e
[ ] 5% 10 % [ ] 10% 15 %
[ ] 25% 30% [ ] 30% and above
10%
[ ] 15% 20%
[ ] 20% 25%
10%
5%-10%
20%
10%-15%
15%-20%
60%
20%-25%
25%-30%
30% & ABOVE
INTERPRETATION
60% of the investors expect 20% - 25% returns from the equity market on their investments.
20% of the investors as per the survey expects 25% - 30% returns on their investments. 10%
of the investors expects a ,lower return of 15-20% and 10% of the investors expect a higher
return of 30% and above on their invested fund.
Que.4. Are you satisfied with the current performance of the Equity Market in terms of
expected return?
63 | P a g e
[ ] Fully Satisfied
[ ] Unsatisfied
[ ] Satisfied
[ ] Neutral
[ ] Fully Unsatisfied
20%
10%
FULLY SATISFIED
SATISFIED
20%
50%
NEUTRAL
UINSATISFIED
FULLY UNSATISFIED
INTERPRETATION
As per the survey 50% of the investors are satisfied with performance of the share
market. 10% of the investors from the total observation are very bullish about the market that
means they are fully satisfied with the performance of the market and the returns they got on
their investment. 20% of the investors are neutral about the market that means they are
neither bullish nor bearish about the market.20% of the total observations are unsatisfied with
performance of the market and no one from the observation is fully unsatisfied with market.
40%
60%
BANKING SECTOR
IT SECTOR
INTERPRETATION
As per the survey 60% of the investors prefer to invest in banking sector in the equity
market which states that banking sector attracts the investors to invest in the companies of
the sector as compare to the IT sector . Only 40% of the total observation prefer to invest in
IT sector.
65 | P a g e
Que.6. In which company, in your preferred sector, you invest your funds?
Banking Sector
IT sector
HDFC
SBI
ICICI
Others
TCS
Infosys
Wipro
Others
[
[
[
[
]
]
]
]
[
[
[
[
]
]
]
]
IT SECTOR
60%
50%
40%
30%
20%
IT SECTOR
50%
25%
10%
10%
15%
WIPRO
OTHERS
0%
TCS
INFOSYS
BANKING SECTOR
60%
50%
40%
30%
20%
BANKING SECTOR
50%
25%
10%
0%
SBI
HDFC
15%
10%
ICICI
OTHERS
INTERPRETATION
Out of the 40% of the observation whom preferred IT sector for investment in Q.5 ,
50% of them Prefer to invest in TCS, 25% of them invest in Infosys, 10% prefer to invest in
Wipro and 15% prefer to invest in other stocks of the IT sector .
Out of the 60% of the people who preferred banking sector in Q.5,of this survey, 50%
of them prefer to invest in equity stock 0f SBI in banking sector, 25% of them prefer to0
invest in HDFC, 15% prefer to invest in ICICI and 10% prefer to invest in other stock of
different companies in the banking sectors.
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Que.7. How much returns you got from your preferred Sector in long run?
[ ] 5% 10 % [ ] 10% 15 %
[ ] 25% 30% [ ] 30% and above
[ ] 15% 20%
[ ] 20% 25%
BANKING RETURNS
70%
60%
50%
BANKING RETURNS
40%
30%
60%
20%
10%
0%
20%
10%
10%
15%-20%
20%-25%
25%-30%
IT RETURNS
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
IT RETURNS
40%
25%
25%
10%
15%-20%
20%-25%
25%-30%
INTERPRETATION
As per the survey people who invested in banking sector. 50% of them have got 25%30% returns on their investment in the long run, 10% of them have got 15% - 20%,10% of
them got 20%-25% on their investment and 30% have earned a return of 30% and above.
People who preferred and invested in IT sector, 40% of them have got 25%-30%
return on their investment in the long run and 10% of them have got 30% and above .25% of
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them have earned a return of 154-20% & other 25% investors earned around 20-25% of
return.
Que.8. Which Factors do you consider most important while selecting the Sectors?
[ ] Market Trend [ ] Profitability
[ ] Economic Condition
[ ] Industry Condition [ ] Government Policy [ ] If any other please specify ________
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
40%
30%
30%
INTERPRETATION
40% of the investors says they consider market trend , economic & company
condition while selecting a sector.30% says they consider profitability & industry condition
to choose a particular sector for investment. And 30% of the total observation says that they
consider government policy, economic condition, profitability while selecting a sector for
investment.
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Que.9. Are you satisfied with the returns provided by your preferred sector?
YES [ ]
NO [ ]
20%
YES
80%
NO
INTERPRETATION
80% of the investor as per the survey are satisfied with the returns they earned from
the sector they invested in. 20% of them are not satisfied with their returns given by the
sector they invested in.
Que.10. What according to you are the reasons for the performance of your preferred sector?
Comment.__________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
INTERPRETATION
Majority of the people says that the timely return whether in terms of returns or the
services provided by the sector to the stakeholder is the most important reason for the
performance of their preferred sector
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HYPOTHESIS
Ho = Null Hypothesis
Ha = Hypothesis
Ho
:-
Banking sector does not provide better returns on investment than IT sector.
Ha.
:-
As per the secondary data and the past records of market trends, a compared to the IT sector,
banking sector have provided better returns to the investors. Equity Stock indices of the
Banking Sector is much volatile than the than IT sector. Further the Primary data of survey
shows that 60% of the total investors surveyed prefer to invest in the banking sector for better
returns over the IT sector.
Thus Hypothesis can be proved as Banking Sector provides better returns on
investment than the IT sector
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In this research , comparison between banking and IT sector , both the sectors given
the good returns in long term but in short term banking sector given good returns
From the above chart , banking given 28.19% returns on investment & 29.3% on SIP
. IT sector given 18.04% returns on investment & 13.3% on SIP. From the chart &
returns , it clearly seen that banking sector is performing better than IT sector.
Banks was the clear out performer among all giving a 12x return in just 5 yrs . Thats
very good return . Energy sector came second and FMCG and IT sector gave the least
returns out of all .
Bank has given 3x return after the crash of 2008-09 . Look at the big spike upwards .
Till the crash Energy sector was performing same to same as Banks , but after the
crash, performance of Energy sector deteriorated and it didnt match up with Bank
IT sector performed very badly after the crash , but in the recent bull run , it has
performed very well and gave superior upside
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Conclusion
Current scenario suggests, markets are on a bullish run, especially in case of Banking
Industry. Analysis suggests that all the chosen stocks ie ICICI Bank, HDFC Bank and
SBI are going to perform well, with huge potential of earnings for equity holders.
Both Banking & IT sectors given the good returns in long term but in short term
banking sector given good returns then IT sector
As per the secondary data and the past records of market trends, a compared to the IT
sector, banking sector have provided better returns to the investors. Equity Stock
indices of the Banking Sector is much volatile than the than IT sector. Further the
Primary data of survey shows that 60% of the total investors surveyed prefer to invest
in the banking sector for better returns over the IT sector.
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BIBLIOGRAPHY
Books
Websites Referred
www.moneycontrol.com
www.myiris.com
www.indiaearnings.moneycontrol.com
http://finance.yahoo.com
www.wikipedia.org
www.reuters.com
www.kotaklifeinsurance.com
www.hdfcbank.com
www.investopedia.com
company reports
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