ABSTRACT

The project entitled equity analysis two different Indian industries is basically useful for

the investors who invest in the stocks in share market. Findings of this study help on

investors to evaluate a particular company’s performance in the industry and its share in

movement in the market by using simple techniques.

The analysis is done because the security prices in an effective capital

market fully reflect their investment value as the market as the capability to intanteously

impound the give set of information in to pricing process.

The empirical findings would be useful to investors as it provides

evidence of time varyin nature of the stock market volatility. Investors aim at making

mare profitable and less risky investments. Therefore, the need of study and analyze

stock market, among many other factors before making investments decisions, but is

impossible to consistently make abnorms returns using trading strategy based on a given

set of information when the markets are efficient.

Thus this study of equity analysis will be an effective guide for investors

of stocks for the profitable investment returns.

CONTENTS

Page Number

Chapter 1 INTRODUCTION 1

1.1 Introduction to the study

1.2 Need for the study 2

1.3 Objectives of the study 2

1.4 Sources of the data 2 1.5 Scope of the study 3 1.6 Limitations of the study 3

Chapter 2 PROFILES

2.1 Industry profile 4

2.2 Company profile 10

Chapter 3 Theoretical Review 19

Chapter 4 Data Analysis & Interpretation 37

Chapter 5 Findings, Suggestions & Conclusion 70

Bibliography

CHAPTER 1

INTRODUCTION

1.1 Introduction of the studyThe stock market has been a part of people's lives throughout the

twentieth century. Millions of people around the world have money

invested in their countries own respective markets. Since the coming of

age of online trading, more people have been investing their money in

stocks than ever before because of the advantages it offers. Online trading

allows people to trade stocks quickly without the help of a broker, lett ing

the investors have more control over their transactions. The competition

between companies has helped decrease the cost of making the

transactions. In addition to that, ordinary people now have access to

information that could only be seen by broke`. Overall , online trading

saves time, money and gives power to the investor rather than the broker.

The securities can invest in shares, government securit ies, Derivative

products, commodities

In financial markets, stock is the capital raised by a corporation through

the issuance and distribution of shares. A person or organization which

holds shares of stocks is called a shareholder. The aggregate value of a

corporation's issued shares is its market capitalization. When one buys a

share of a company he becomes a shareholder in that company. Shares are

also known as Equities. Equities have the potential to increase in value

over time. It also provides the portfolio with the growth necessary to

reach the long-term investment goals. Research studies have proved that

the equities have outperformed than most other forms of investments in

the long term. Equities are considered the most challenging and the

rewarding, when compared to other investment options. Research studies

have proved that investments in some shares with a longer tenure of

investment have yielded far superior returns than any other investment.

However, this does not mean all equity investments would guarantee

similar high returns. Equities are high-risk investments. One needs to

study them carefully before investing. Since 1990 til l date, Indian stock

market has returned about 17% to investors on an average in terms of

increase in share prices or capital appreciation annually. Besides that on

average stocks have paid 1.5 % dividend annually. Dividend is a

percentage of the face value of a share that a company returns to its

shareholders from its annual profits. Compared to most other forms of

investments, investing in equity shares offers the highest rate of return, if

invested over a longer duration. The first company to issue shares of stock

was the Dutch East India Company, in 1602. The innovation of joint

ownership made a great deal of Europe's economic growth possible

following the Middle Ages.

STRUCTURE OF THE CAPITAL MARKET

1.2 Need for the study:

The need of the study is to describe the techniques and planning in

present investment environment. Apart from this, the objective of this

study is to keenly understand issues, examines all the essential analysis

and techniques as to how to apply them successfully. It incorporates

sections on fundamental analysis in the contexts of various companies in

the stock markets.

The purpose of the study is to supply, inform suitable guidance to

retail investors. For the purpose of study the volati lity in the banking

industries stock prices for certain period are considered. For this study the

data collected are return and risk of investing an industrial stock. Equity

analysis and market price of shares of INFOSYS, TCS, WIPRO, HDFC

BANK, ICICI BANK, AXIS BANK are considered for the study.

1.3 Objectives of the study: To understand what Equity markets are.

To understand the performance of few Indian industry sectors viz. Software &

Banking.

To understand the performance of SIX Indian companies of the above two

sectors.

To evaluate the investment prospects of these companies.

1.4 Sources of the data:

Most of the data for the study had been dependent on secondary source

which had been collected from the following:

Newspapers

Books

Internet

BSE

NSE

1.5 Scope of the Study:

This study cover introduction to capital market and trading to serve as basic

material for capital market operations. However basic fundamentals have been brought

out which can be also helpful for the study in large scale studies.

1.6 Limitations: Duration of the project is only 45 days, so not possible to evaluate

other sector performance also.

There is a time frame for every company, l ike not taken historical

daily records into consideration.

Analysis based on only correlation to one sector stocks to other

stocks and shown impact of financial results impact only and not

applied any research.

The information which I am going to mention is completely

secondary data.

CHAPTER 2

INDUSTRY PROFILES

2.1 INDUSTRY PROFILE

NATIONAL STOCK EXCHANGE

The National Stock Exchange of India (NSE) situated in Mumbai - is the largest

and most advanced exchange with 1016 companies listed and 726 trading members.

Capital market reforms in India and the launch of the Securities and Exchange Board of

India (SEBI) accelerated the incorporation of the second Indian stock exchange called the

National Stock Exchange (NSE) in 1992. After a few years of operations, the NSE has

become the largest stock exchange in India.

Three segments of the NSE trading platform were established one after another. The

Wholesale Debt Market (WDM) commenced operations in June 1994 and the Capital

Market (CM) segment was opened at the end of 1994. Finally, the Futures and Options

segment began operating in 2000. Today the NSE takes the 14th position in the top 40

futures exchanges in the world.

In 1996, the National Stock Exchange of India launched S&P CNX Nifty and CNX

Junior Indices that make up 100 most liquid stocks in India. CNX Nifty is a diversified

index of 50 stocks from 25 different economy sectors. The Indices are owned and

managed by India Index Services and Products Ltd (IISL) that has a consulting and

licensing agreement with Standard & Poor's.

In 1998, the National Stock Exchange of India launched its web-site and was the first

exchange in India that started trading stock on the Internet in 2000. The NSE has also

proved its leadership in the Indian financial market by gaining many awards such as 'Best

IT Usage Award' by Computer Society in India (in 1996 and 1997) and CHIP Web

Award by CHIP magazine (1999).

The NSE is owned by the group of leading financial institutions such as Indian Bank or

Life Insurance Corporation of India. However, in the totally de-mutualised Exchange, the

ownership as well as the management does not have a right to trade on the Exchange.

Only qualified traders can be involved in the securities trading.

The NSE is one of the few exchanges in the world trading all types of securities on a

single platform, which is divided into three segments: Wholesale Debt Market (WDM),

Capital Market (CM), and Futures & Options (F&O) Market.

Each segment has experienced a significant growth throughout a few years of their

launch. While the WDM segment has accumulated the annual growth of over 36% since

its opening in 1994, the CM segment has increased by even 61% during the same period.

The National Stock Exchange of India has stringent requirements and criteria for the

companies listed on the Exchange. Minimum capital requirements, project appraisal, and

company's track record are just a few of the criteria. In addition, listed companies pay

variable listing fees based on their corporate capital size.

The National Stock Exchange of India Ltd. provides its clients with a single, fully

electronic trading platform that is operated through a VSAT network. Unlike most world

exchanges, the NSE uses the satellite communication system that connects traders from

345 Indian cities. The advanced technologies enable up to 6 million trades to be operated

daily on the NSE trading platform.

NSE Nifty:

The S&P CNX Nifty (nicknamed Nifty 50 or simply Nifty), is the leading index for large

companies on the National Stock Exchange of India. S&P CNX Nifty is a well

diversified 50 stock index accounting for 22 sectors of the economy. It is used for a

variety of purposes such as benchmarking fund portfolios, index based derivatives and

index funds.

Nifty was developed by the economists Ajay Shah and Susan Thomas, then at IGIDR.

Later on, it came to be owned and managed by India Index Services and Products Ltd.

(IISL), which is a joint venture between NSE and CRISIL. IISL is India's first specialised

company focused upon the index as a core product. IISL have a consulting and licensing

agreement with Standard & Poor's (S&P), who are world leaders in index services.

CNX stands for CRISIL NSE Indices. CNX ensures common branding of indices, to

reflect the identities of both the promoters, i.e. NSE and CRISIL. Thus, 'C' stands for

CRISIL, 'N' stands for NSE and X stands for Exchange or Index. The S&P prefix belongs

to the US-based Standard & Poor's Financial Information Services.

NSE other indices:

S&P CNX Nifty

CNX Nifty Junior

CNX 100

S&P CNX 500

CNX Midcap

S&P CNX Defty

CNX Midcap 200

BOMBAY STOCK EXCHANGE:

The Bombay Stock Exchange Limited (formerly, The Stock Exchange, Mumbai;

popularly called The Bombay Stock Exchange, or BSE) is the oldest stock exchange in

Asia. It is located at Dalal Street, Mumbai, India.

Bombay Stock Exchange was established in 1875. There are around 5,600 Indian

companies listed with the stock exchange, and has a significant trading volume. As of

October2006, the market capitalization of the BSE was about Rs. 33.4 trillion (US $ 730

billion). The BSE SENSEX (Sensitive index), also called the BSE 30, is a widely used

market index in India and Asia. As of 2005, it is among the 5 biggest stock exchanges in

the world in terms of transactions volume.

History:

An informal group of 22 stockbrokers began trading under a banyan tree opposite the

Town Hall of Bombay from the mid-1850s, 1875, was formally organized as the Bombay

Stock Exchange (BSE).In January 1899, the stock exchange moved into the Brokers’ Hall

after it was inaugurated by James M MacLean. After the First World War, the BSE was

shifted to an old building near the Town Hall. In 1956, the Government of India

recognized the Bombay Stock Exchange as the first stock exchange in the country under

the Securities Contracts (Regulation) Act.1995, when it was replaced by an electronic

(eTrading) system named BOLT, or the BSE Online Trading system. In 2005, the status

of the exchange changed from an Association of Persons (AoP) to a full fledged

corporation under the BSE (Corporatization and Demutualization) Scheme, 2005 (and its

name was changed to The Bombay Stock Exchange Limited).

BSE Sensex:

The BSE SENSEX (also known as the BSE 30) is a value-weighted index composed of

30 scrips, with the base April 1979 = 100. The set of companies which make up the index

has been changed only a few times in the last 20 years. These companies account for

around one-fifth of the market capitalization of the BSE.

SENSEX, first compiled in 1986 was calculated on a "Market Capitalization-Weighted"

methodology of 30 component stocks representing a sample of large, well-established

and financially sound companies. The base year of SENSEX is 1978-79. The index is

widely reported in both domestic and international markets through print as well as

electronic media. SENSEX is not only scientifically designed but also based on globally

accepted construction and review methodology. From September 2003, the SENSEX is

calculated on a free-float market capitalization methodology. The "free-float Market

Capitalization-Weighted" methodology is a widely followed index construction

methodology on which majority of global equity benchmarks are based.

The growth of equity markets in India has been phenomenal in the decade gone by. Right

from early nineties the stock market witnessed heightened activity in terms of various

bull and bear runs. More recently, the bourses in India witnessed a similar frenzy in the

'TMT' sectors. The SENSEX captured all these happenings in the most judicial manner.

One can identify the booms and bust of the Indian equity market through SENSEX.

The values of all BSE indices are updated every 15 seconds during the market hours and

displayed through the BOLT system, BSE website and news wire agencies.

SENSEX calculation:  

SENSEX is calculated using a "Market Capitalization-Weighted" methodology.

As per this methodology, the level of index at any point of time reflects the total market

value of 30 component stocks relative to a base period. (The market capitalization of a

company is determined by multiplying the price of its stock by the number of shares

issued by the company). An index of a set of combined variables (such as price and

number of shares) is commonly referred as a 'Composite Index' by statisticians. A single

indexed number is used to represent the results of this calculation in order to make the

value easier to work with and track over time. It is much easier to graph a chart based on

indexed values than one based on actual values. 

The base period of SENSEX is 1978-79. The actual total market value of the

stocks in the Index during the base period has been set equal to an indexed value of 100.

This is often indicated by the notation 1978-79=100. The formula used to calculate the

Index is fairly straightforward. However, the calculation of the adjustments to the Index

(commonly called Index maintenance) is more complex. 

The calculation of SENSEX involves dividing the total market capitalization of 30

companies in the Index by a number called the Index Divisor. The Divisor is the only link

to the original base period value of the SENSEX. It keeps the Index comparable over

time and is the adjustment point for all Index maintenance adjustments. During market

hours, prices of the index scrips, at which latest trades are executed, are used by the

trading system to calculate SENSEX every 15 seconds and disseminated in real

time.During market hours, prices of the index scrips, at which trades are executed, are

automatically used by the trading computer to calculate the SENSEX every 15 seconds

and continuously updated on all trading workstations connected to the BSE trading

computer in real time.

BSE - other Indices:

Apart from BSE SENSEX, which is the most popular stock index in India, BSE uses

other stock indices as well:

BSE 500

BSE PSU

BSE MIDCAP

BSE SMLCAP

BSE BANKEX

COMPANY PROFILE

COMPANY PROFILE

L&T Finance is one of the leading NBFCs in the country and offers a wide

spectrum of financial products and services for trade, industry and agriculture.

Overview

L&T Finance Limited (LTF) is a subsidiary of Larsen and Toubro. It was

incorporated as a Non Banking Finance Company in November 1994. Through

LTF, L&T aims at making a strong foray in the ever-expanding financial services

sector.

As a business philosophy, we fund income generating assets/activities while

maintaining a clear focus on returns.

LTF offers a spectrum of financial products and services for trade, industry and

agriculture. The company's focus segments are corporate products, construction

equipment, CVs and tractors. Despite the turbulence in the financial services

markets over the past few years, L&T Finance has adapted well to the changing

market dynamics to remain consistently profitable.

Like the rest of the companies in L&T group, LTF is also professionally managed.

LTF shares the professional values and ethos of its parent company, and has

acquired and maintained a reputation for reliability, transparency of operations

and absolute integrity. A steady growth rate validates the trust that industry has

reposed in the company.

Mission :

Our Aim : To be a strategic business partner and a solution provider.

Our Purpose : To nurture human capital and develop leadership for professional

excellence through meritocracy and continuous learning environment.

Our values : Customer orientation, teamwork, trust and transparency.

Vision :

"To be a dominant player in financial services, committed to constant innovation

and sustained customer service to enhance shareholder's wealth. LTF will foster

trust, uphold integrity and radiate positive energy."

About L&T Group

Larsen & Toubro Ltd is a USD 9.8 billion technology, engineering and

construction group with operations spread across the globe. It was ranked as

14th by the Economic Times in their survey of the Top 500 Companies in India.

Another feather in its cap was added when L&T was ranked 47th in the world in

the June 2009 issue of Forbes-Reputation Institute’s “World’s Most Reputable

Companies” survey. In this survey, L&T was the only engineering and

construction company in the world to have made it to the top 200.

Having established its foothold in engineering and construction, electrical and

electronics, industrial products and information technology, L&T forayed into the

financial services space. Financial Services has been identified as a strategically

important business for L&T Group. It has been L&T’s vision to become a

‘wholesome’ player in this area of business. With an entire range of products and

service offerings, L&T’s ‘Financial Services’ initiative will cater to an entire

spectrum of customers, and their various financial needs.

Management

 

Chief Executive

 

Mr. Dinanath Dubhashi holds a B.E. (Mechanical) and has completed his PGDM from IIM,

Bangalore. He has been with L&T finance from April 2007. Prior to taking over as Chief Executive he

occupied various senior level positions in the organization and has been responsible in leading L&T

Finance’s foray in Retail Finance including Microfinance. He comes with almost 20 years of

experience in various fields of financial services like Retail Financial Services, Corporate Banking,

Cash Management and Trade, Credit Rating and Project Finance from various reputed Indian and

International organizations. Immediately prior to joining L&T Finance, he worked with BNP Paribas

for 10 years in India and abroad heading various important verticals like Cash Management, Trade

Services and Corporate Banking Products. His assignments previous to this were with Birla Sunlife,

Care Ratings and SBI Capital Markets.

  Board of Directors 

Y. M. Deosthalee, Whole-time Director and CFO, Larsen & Toubro Ltd.

Mr. Deosthalee, aged 64, is the chief financial officer and member of the board of L&T. He is a

chartered accountant by profession. He has a degree in law. He is also a member on the board of

several subsidiary and associate companies of the L&T group. He has been with L&T for the past 36

years. In addition to the finance function, he is also responsible for personnel and human resource

functions, risk management, mergers and acquisitions, concessions business, shared services centre,

providing strategic inputs and helps in business-building of L&T Infotech, amongst other things. He

has been instrumental in promoting the Financial Services business of L&T group. 

In 2008, he was appointed as a member on the Advisory Committee for liquidity management set up by

the Finance Ministry. In 2009, he was appointed as a member of the Takeover Regulations Advisory

Committee which has been constituted by SEBI to examine the regulations and suggest amendments.

He is the Co-Chairman of FICCI's Corporate Finance Committee, member of the National Council on

Infrastructure of the Confederation of Indian Industry and a member of the National Council on

Corporate Governance of the Confederation of Indian Industry. He has also won several awards

including the-Best CFO of the Year and also Best CFO in the Capital Goods Sector at the CNBC TV18

Business Leaders Awards in 2009. He has over 40 years of work experience.

 

N. Sivaraman,   Senior Vice President, Financial Services, Larsen & Toubro Ltd.

Mr. Sivaraman, aged 52, is the president and whole-time director of our Company. He has a

bachelor’s degree in commerce from Madras University. He is a chartered accountant by profession

and is a fellow member of the Institute of Chartered Accountants of India. He has an overall experience

of approximately 28 years with L&T. He has varied experience in all aspects of finance and accounts,

mergers and acquisition and investor relations. Currently, he is heading the financial services business

of L&T. As the head of financial services business he is responsible for and oversees the following

entities – L&T Finance Limited, L&T Infrastructure Finance Company Limited, L&T Investment

Management Limited and L&T General Insurance Company Limited. During his career at L&T, Mr.

Sivaraman played a key role in structuring the demerger of the cement business of L&T and inducting

private equity investors in L&T Infrastructure Development Projects Limited.

 

R. Shankar Raman,  Senior Vice President, Finance & Legal, Larsen & Toubro Ltd.

Mr. R. Shankar Raman,aged 52, is the senior vice president (finance and legal) at L&T. He is a

nonexecutive director on the board of our Company and L&T Finance. Mr. Shankar Raman has a

bachelor’s degree in commerce from Madras University. He is a Chartered and Cost Accountant by

profession. He has approximately 27 years of experience in the field of finance. He has experience in

other varied areas such as audit, accounts, treasury, capital markets, corporate finance, project finance

and general management. He joined L&T group in 1994 for setting up L&T Finance. After six

successful years with L&T Finance, he moved to L&T to oversee the Finance & Accounting functions.

He is on the board of several companies including international subsidiaries within the L&T group. Mr.

Shankar Raman is a member of Western India Regional Council of Confederation of Indian Industries.

Mr. Shankar Raman has participated and presented papers in several conventions / seminars including

international conferences.

 

Mr. Subramaniam N., Independent Director, Finance & Legal, Larsen & Toubro Ltd.

Mr. Subramaniam N., aged 49, is an independent director on the board of our Company. Mr.

Subramaniam N. has a degree in management and business administration from the Indian

Institute of Management, Ahmedabad. He is a fellow of the Institute of Chartered Accountants

of India, an FCS and ICWA. He has over two decades of experience in the areas of private

equity, investment management, banking, finance, accounts, risk management, system

implementation and corporate governance, MIS and human resource management. He is the

founder and managing partner of MCAP Fund Advisors. He is also a teacher at top tier

business schools and professional institutes.

 

Mr. P. V. Bhide, Independent Director, Finance & Legal, Larsen & Toubro Ltd.

Mr. P. V. Bhide, aged 61, is an independent director on the Board of our Company. Mr.Bhide

is a retired IAS Officer and holds degrees in MBA, L.L.B and B.Sc. During his career

spanning about four decades he held various positions, including the Secretary, Department

of Revenue, Ministry of Finance, Government of India, Secretary and Joint Secretary,

Department of Disinvestment, Ministry of Finance, Government of India, Additional

Secretary/Spl. Secretary, Ministry of Home Affairs, Government of India, Deputy

Secretary/Director in the Department of Economic Affairs, Ministry of Finance, Government of

India, Director Fund-Bank Division of the Department and Advisor to India’s Executive

Director to the International Board for Reconstruction and Developemnt, Washington D.C,

Secretary, Department of Finance, Government of Andhra Pradesh, Secretary, Department of

Energy, Government of Andhra Pradesh and Managing Director, Godavari Fertilisers and

Chemicals Limited.

Corporate Governance

Code of Conduct

L&T Finance Limited (“LTF/the Company”) is a professionally managed

Company, having its vision statement committed to constant innovation and

sustained customer service to enhance shareholder’s wealth.

The Company's philosophy on corporate governance is built on a rich legacy of

fair and transparent governance and disclosure practices. This includes respect

for human values, individual dignity, and adherence to honest, ethical and

professional conduct. This Code of Conduct ensures compliance with the

provisions of Clause 49 of the Listing Agreement with Stock Exchanges.

This Code of Conduct is applicable to the:

Members of the of the Company; and Senior Management, defined as members

of Core Management Team excluding and one level below the Executive

Directors including Functional Heads

The above Senior Managerial Personnel are hereinafter referred to in this Code

of Conduct as "Senior officers".

The Senior officers shall confirm that they have received, read and understood

the Code of Conduct, and agree to comply with the Code in the format specified

on an annual basis.

The Senior officers are expected to comply with all applicable laws, rules and

regulations and all applicable policies and procedures adopted by the Company.

The Senior officers should adhere to and facilitate effective functioning of the

Company's mechanism for redressal of complaints of sexual harassment.

Senior officers will ensure proper usage of authority as delegated to them as per

the Company's rules.

Every Senior officer has to secure, preserve, safeguard and use discreetly,

confidential information in the best interest of the Company. He should not

divulge or communicate such information to third parties except when authorized

for the business reasons. In this regard, Corporate Communication Department

has identified spokespersons authorized to deal with the media.

Senior officers are expected to devote their full attention with integrity and

honesty to the business interests of the Company and are prohibited from

engaging in any activity that interferes with their proper discharge of

responsibilities of the Company, or is in conflict with or prejudicial to the interests

of the Company.

Senior officers should avoid conducting Company business in any significant way

with a relative (as defined in the Companies Act, 1956), or with a business in

which a close relative is associated.

The Senior officers are responsible for effective control and appropriate use of all

Company's resources entrusted to them in the official discharge of their duty.

The Senior officers should abide by 'LTF Securities Dealing Code' in compliance

with the SEBI (Prohibition of Insider Trading) Regulations 1992, as adopted by

the of the Company.

Fair Practices CodeInvestors » Corporate Governance » Fair Practices Code

Pursuant to Reserve Bank of India (RBI) ’s Circular DNBS (PD) CC

No.80/03.10.042 /2005-06 of 28 September 2006, issued to Non-Banking

Financial Companies (NBFCs), we the Board of Directors have adopted a Fair

Practices Code.

The Fair Practices Code, as adopted herein below, is in conformity with the

Guidelines on Fair Practices Code for NBFCs as contained in the aforesaid RBI

Circular.

Fair Practices Code

The Company’s business would be conducted in accordance with prevailing

statutory and regulatory requirements, with due focus on efficiency, customer-

orientation and corporate governance principles – all of which form part of L&T

FINANCE LIMITED approved Investment and Credit Policy.

In addition, the Company would adhere to the Fair Practices Code in its functioning, the key elements of which are as follows:

Applications for Loans and their Processing Loan application forms shall include necessary information, which affects

the interest of the borrower, so that a meaningful comparison with the

terms and conditions offered by other NBFCs can be made and the

borrower can take an informed decision. The loan application form may

also indicate the documents required to be submitted with the application

form.

The Company shall devise a system of giving acknowledgement for

receipt of all loan applications. Further, generally, the time frame within

which the loan application will be disposed of would also be indicated in

the acknowledgement.

Loan Appraisal and Terms/Conditions The Company shall convey in writing to the borrower by means of

approval letter or otherwise, the amount of loan approved - along with the

terms and conditions, including the annualized rate of interest and method

of application thereof. It would keep the acceptance of these terms and

conditions by the borrower on the Company’s files.

Disbursement of Loans including Changes in Terms and Conditions The Company shall give notice to all its borrowers of any change in the

terms and conditions - including disbursement schedule, interest rates,

service charges, prepayment charges etc. The Company shall also ensure

that changes in interest rates and charges are effected only prospectively.

A suitable provision in this regard shall be incorporated in the loan

agreement.

Decision to recall / accelerate payment or performance under the

agreement shall also be in consonance with the loan agreement.

The Company shall release all securities on repayment of its full dues or

on realization of the outstanding amount of loan subject to any legitimate

right or lien for any other claim the Company may have against its

borrowers. If such right of set off is to be exercised, the borrower shall be

given notice about the same with full particulars about the remaining

claims and the conditions under which the Company is entitled to retain

the securities till the relevant claim is settled/paid.

General The Company shall refrain from interference in the affairs of the borrower

except for the purposes provided for in the terms and conditions of the

loan agreement (unless new information, not earlier disclosed by the

borrower, has come to the notice of the Company).

In case of receipt of request from the borrower for transfer of borrowal

account, the consent or otherwise - i.e., objection of the Company, if any -

shall be conveyed to the borrower within 21 days from the date of receipt

of any request. Such transfer shall be as per transparent contractual terms

in consonance with law.

In the matter of recovery of loans, the Company shall not resort to any

harassment – such as persistently bothering the borrowers at odd hours,

use of muscle power for recovery of loans, etc.

The Company shall have a Grievance Redressal Forum comprising senior

management team – namely, the Manager Under Companies Act,

Company Secretary AND one Director from the board - to resolve disputes

arising, if any, in this regard. The said forum will meet within a period of 3

weeks from the date of receiving any grievance intimation. (It shall ensure

that all disputes arising out of the decisions of lending by the Company's

functionaries are suitably heard and disposed of at least at the next higher

level.) The said forum shall provide the highlights of the issues and

redressal if any to the for their review and compliance at each subsequent

meeting

Contact UsRegistered officeL&T House, 

Ballard Estate, 

Mumbai - 400 001. 

Tel: +91-22 – 6752 5656 

Fax: +91-22 – 6752 5893

Administrative officeThe Metropolitan 

8th Floor, 

C-26/27, E-Block, Bandra - Kurla complex, 

Bandra (East), 

Mumbai - 400 051 

Tel.: +91-22 – 6737 2951 

Fax: +91-22 – 6737 2900

CHAPTER 3

Theoretical Review

the concept of capital market is in a way 130 years old. Capital market was known as

“share bazaar” it was also treated as a ”satta bazaar” starting of capital market concept in

India took place with the birth of Bombay Stock Exchange.

 

A securities contract (Regulation) Act of 1956 of India was first major step to recognize

capital market. Bombay Stock Exchange got first recognition in 1956 under this act.

Bombay Stock Exchange, which was the major stock exchange, in way had monopoly in

the Indian capital market till the birth of National Stock Exchange. Bombay Stock

Exchange celebrated its 125th jubilee year in the 2000. The capital market, the stock

exchange, the Equity concept was baby till 1960. And the concept of mutual fund was

introduced by the government with the formation of Unit Trust of India in 1963-64.

 

Capital market in India is a new development compared to the western world. India was

known as under developed country from the view point of economic and industrial

growth. After getting freedom in 1947, India started thinking about planned development

in 1948. The first industrial policy development statement was made on April 6th 1948.

 

The concept of capital market is directly linked with industrial development of country. It

is also treated as barometer of economic growth. Industrial development started in India

in 19th century, there were very few entrepreneurs known as Tata’s, Birla’s, etc. who

started industries in their own country i.e. India. In the 20th century first quarter, this

group started big industries in major metropolitan cities.

 

Stock exchanges have a very important function to fulfill in the country’s economy. Its

main function is to liquefy capital by enabling a person who has invested money in.

The stock exchange is really an essential pillar of the private sector corporate economy.

The stock exchange provides a market place for purchase and sale of securities i.e.

shares, bonds, debentures, etc…

 

The stock exchange provides the linkage between the saving in the house hold sector and

the investment in corporate economy.

By providing a market quotation of the prices of shares and bonds a sort of collective

judgment simultaneously reached by many buyers and sellers in the market. The stock

exchanges serve the role of barometer. Exchanges serve the role of barometer, not only

the state of health of individual companies, but also of the nation’s economy as a whole.

 

Another important function that the stock exchange in India discharge is of providing

market for gilt-edged securities i.e. securities issued by the government sectors,

municipalities, improvement trust, and other public bodies.

 

There are 22 stock exchange in India, the first being the Bombay Stock Exchange

(BSE),which began formal trading in 1875, making it one of the oldest in Asia. Over the

last few years, there has been a rapid change in the Indian securities market, especially in

the secondary market. Advanced technology and online-based transactions have

modernized the stock exchanges. In terms of the number of companies listed and total

market capitalization, the Indian equity market is considered large relative to the

country’s stage of economic development. The number of listed companies increased

from 5,968 in March 1990 to about 10,000 by May 1998 and market capitalization has

grown almost 11 times during the same period. The debt market, however, is almost

nonexistent in India even though there has been a large volume of Government bonds

traded. Banks and financial institutions have been holding a substantial part of these

bonds as statutory liquidity requirement. The portfolio restrictions on financial

institutions statutory liquidity requirement are still in place.

 

A primary auction market for Government securities has been created and a primary

dealer system was introduced in 1995. There are six authorized primary dealers.

Currently, there are 31 mutual funds, out of which 21 are in the private sector. Mutual

funds were opened to the private sector in 1992. Earlier, in 1987, banks were allowed to

enter this business, breaking the monopoly of the Unit Trust of India (UTI), which

maintains a dominant position. Before 1992, many factors obstructed the expansion of

equity trading. Fresh capital issues were controlled through the Capital Issues Control

Act. Trading practices were not transparent, and there was a large amount of insider

trading. Recognizing the importance of increasing investor protection, several measures

were enacted to improve the fairness of the capital market. The Securities and Exchange

Board of India (SEBI) was established in 1988. Despite the rules it set, problems

continued to exist, including those relating to disclosure criteria, lack of broker capital

adequacy, and poor regulation of merchant bankers and underwriters.

There have been significant reforms in the regulation of the securities market since 1992

in conjunction with overall economic and financial reforms.

 

In 1992, the SEBI Act was enacted giving SEBI statutory as an apex regulatory body.

And a series of reforms was introduced to improve investor protection.

 

                Automation of stock trading, integration of national markets, and efficiency of

market operations. India has seen a tremendous change in the secondary market for

equity. Its equity market will most likely be comparable with the world’s most advanced

secondary markets within a year or two. The key ingredients that underlie market quality

in India’s equity market are:

         Exchange based on open electronic limit order book;

       Nationwide integrated market with a large number of informed      traders

and fluency of short or long positions; and

       No counter party risk.

CHAPTER 4

Data Analysis &

Interpretation

INFOSYS

Date Open High Low Close Volume18-12-2014 4387 4402.2 1896.3 1965.9 8123844128-11-2014 4076.9 4398 4032.45 4359.85 1919507931-10-2014 3722 4066 3572.7 4051.25 2929376330-09-2014 3610.05 3795 3555.55 3747.75 2141364728-08-2014 3350 3650 3330 3598.8 1654683031-07-2014 3245 3432 3185.8 3367.65 2073565730-06-2014 2960.5 3339.4 2950 3255.55 2687037530-05-2014 3185 3340 2880 2939.4 2797862830-04-2014 3283.05 3388 3142.4 3180.8 2154012231-03-2014 3825 3849.95 3215.95 3282.8 2629111028-02-2014 3685 3837.15 3541 3824.85 1522323431-01-2014 3492 3799 3417.85 3701.1 3222681431-12-2013 3352 3575 3318.2 3485.65 2075086929-11-2013 3300 3448 3233 3354.55 1477939931-10-2013 3030 3377.7 3003 3309.9 2933412330-09-2013 3077.1 3188 2980.1 3013 2367922430-08-2013 2988 3130 2922.1 3105.85 2393604031-07-2013 2469 2991.6 2392.6 2969.65 2706847528-06-2013 2525 2625 2342.75 2498.85 1889213431-05-2013 2236 2434.9 2236 2411.7 1836122830-04-2013 2910.75 2999.55 2186 2235.45 4359139628-03-2013 2914 3009.8 2827.55 2889.35 2002632028-02-2013 2791.1 2969.4 2741.75 2907 1822166331-01-2013 2327.6 2836.95 2303.5 2789.5 4190568831-12-2012 2437 2453 2245 2318.7 2088505230-11-2012 2362 2480 2278.8 2436.85 1518457031-10-2012 2551.3 2620.2 2060.55 2363 2751085128-09-2012 2366 2650 2332.2 2534.95 1867551931-08-2012 2215 2483 2185.1 2361.65 1664127931-07-2012 2171.25 2250 2101.25 2226.95 9742441

Intraday performance of INFOSYS from 31-07-2012 to 18-12-2014

INTERPRETATION:

Looking for a target price of Rs 2,020 at least in  Infosys  . The stock after witnessing a

steep correction seems to have taken good amount of support at Rs 1,930-1,940 odd

levels. Some amounts of build up are also seen getting build in this stock.

If you look at the overall performance of the IT sector, in past couple of days, Infosys is

yet to catch out its peer’s. So, the stock looks fairly placed for higher targets of Rs 2,020

and above. One can buy this stock keeping a stoploss at Rs 1,920.

INFOSYS RESULTS:

Infosys Ltd., incorporated in the year 1981, is a Large Cap company (having a market cap

of Rs 225824.11 Cr.) operating in Information Technology sector.

Infosys Ltd. key Products/Revenue Segments include Software Development Charges

which contributed Rs 42531.00 Cr to Sales Value (95.91% of Total Sales), Software

Products which contributed Rs 1810.00 Cr to Sales Value (4.08% of Total Sales), for the

year ending 31-Mar-2014.

For the quarter ended 30-Sep-2014, the company has reported a Standalone sales of Rs.

11863.00 Cr., up 4.81% from last quarter Sales of Rs. 11319.00 Cr. and up 3.32% from

last year same quarter Sales of Rs. 11482.00 Cr. Company has reported net profit after

tax of Rs. 3365.00 Cr. in latest quarter.

The company’s management includes Dr.Vishal Sikka, Mr.John Etchemendy, Mr.K

Parvatheesam, Mr.K V Kamath, Mr.R Seshasayee, Mr.Ravi Venkatesan, Mr.U B Pravin

Rao, Ms.Carol M Browner, Ms.Kiran Mazumdar Shaw, Prof.Jeffrey Sean Lehman,

Mr.Charles Henry Hawkes, Mr.Haragopal Mangipudi, Mr.K Parvatheesam, Mr.Rajiv

Bansal, Mr.Srikantan Moorthy, Mr.Vishnu G Bhat, Ms.Nandita Mohan Gurjar, Dr.Omkar

Goswami.

Company has BSR & Co. as its auditors. As on 30-Sep-2014, the company has a total of

574,236,166 shares outstanding.

PERFORMANCE OF WIPRO FROM 31-07-2012 TO 18-12-2014.

Date Open High Low Close Volume18-12-2014 4387 4402.2 1896.3 1965.9 8123844128-11-2014 4076.9 4398 4032.45 4359.85 1919507931-10-2014 3722 4066 3572.7 4051.25 2929376330-09-2014 3610.05 3795 3555.55 3747.75 2141364728-08-2014 3350 3650 3330 3598.8 1654683031-07-2014 3245 3432 3185.8 3367.65 2073565730-06-2014 2960.5 3339.4 2950 3255.55 2687037530-05-2014 3185 3340 2880 2939.4 2797862830-04-2014 3283.05 3388 3142.4 3180.8 2154012231-03-2014 3825 3849.95 3215.95 3282.8 2629111028-02-2014 3685 3837.15 3541 3824.85 1522323431-01-2014 3492 3799 3417.85 3701.1 3222681431-12-2013 3352 3575 3318.2 3485.65 2075086929-11-2013 3300 3448 3233 3354.55 1477939931-10-2013 3030 3377.7 3003 3309.9 2933412330-09-2013 3077.1 3188 2980.1 3013 2367922430-08-2013 2988 3130 2922.1 3105.85 2393604031-07-2013 2469 2991.6 2392.6 2969.65 2706847528-06-2013 2525 2625 2342.75 2498.85 1889213431-05-2013 2236 2434.9 2236 2411.7 1836122830-04-2013 2910.75 2999.55 2186 2235.45 4359139628-03-2013 2914 3009.8 2827.55 2889.35 2002632028-02-2013 2791.1 2969.4 2741.75 2907 1822166331-01-2013 2327.6 2836.95 2303.5 2789.5 4190568831-12-2012 2437 2453 2245 2318.7 2088505230-11-2012 2362 2480 2278.8 2436.85 1518457031-10-2012 2551.3 2620.2 2060.55 2363 2751085128-09-2012 2366 2650 2332.2 2534.95 1867551931-08-2012 2215 2483 2185.1 2361.65 1664127931-07-2012 2171.25 2250 2101.25 2226.95 9742441

PERFORMANE GRAPH OF WIPRO

INTERPRETATION:

" Wipro  has mostly traded in the range of Rs 530 to Rs 600 levels since the last four-five

months, whatever happens to the market. Because of bad news, again it has come down

to Rs 530. So I think it may be a good level again to start forming the long positions in

the stock. Short covering has already started and if you see the moving averages, they

also plays around this level. So it is an important area where we can start picking Wipro

from these levels,"

"On the short side I would use something which went up today. Wipro   I believe would

get a lot of resistance towards Rs 560-570. So keeping a stoploss at Rs 570 I take on a

short position. Targets on Wipro would be Rs 515 in the near term."

WIPRO RESULTS: Moneycontrol Bureau

Wipro Ltd., incorporated in the year 1945, is a Large Cap company (having a market cap

of Rs 132788.75 Cr.) operating in Information Technology sector.

Wipro Ltd. key Products/Revenue Segments include Software Services which contributed

Rs 32861.00 Cr to Sales Value (84.76% of Total Sales), I T Enabled Services which

contributed Rs 2553.20 Cr to Sales Value (6.58% of Total Sales), Networking, Storage

equipment, Servers, Software Licenses which contributed Rs 1524.00 Cr to Sales Value

(3.93% of Total Sales), Mini Computers/Micro Processor Based Systems which

contributed Rs 911.10 Cr to Sales Value (2.35% of Total Sales), Others which

contributed Rs 803.50 Cr to Sales Value (2.07% of Total Sales), Other Services which

contributed Rs 112.30 Cr to Sales Value (0.28% of Total Sales), for the year ending 31-

Mar-2014.

For the quarter ended 30-Sep-2014, the company has reported a Standalone sales of Rs.

10228.30 Cr., up 2.66% from last quarter Sales of Rs. 9963.40 Cr. and up 6.66% from

last year same quarter Sales of Rs. 9589.50 Cr. Company has reported net profit after tax

of Rs. 1992.00 Cr. in latest quarter.

The company’s management includes Mr.V Ramachandran, Dr.Ashok S Ganguly,

Dr.Henning Kagermann, Dr.Jagdish N Sheth, Mr.Alok Bansal, Mr.Angan Arun Guha,

Mr.Arjun Ramaraju, Mr.Azim H Premji, Mr.B C Prabhakar, Mr.Deepak Jain, Mr.Dinakar

Kini, Mr.Gaurav Dhall, Mr.Hariprasad Hegde, Mr.Harsh Bhatia, Mr.Hoshedar

Contractor, Mr.Jatin Pravinchandra Dalal, Mr.M K Sharma, Mr.Narayanan Vaghul,

Mr.Pratik Kumar, Mr.Raja Ukil, Mr.Rishad Premji, Mr.S Jayakrishnan, Mr.Satishchandra

Doreswamy, Mr.Saurabh Govil, Mr.Shyam Saran, Mr.Subhash Khare, Mr.Suresh C

Senapaty, Mr.T K Kurien, Mr.T K Kurien, Mr.V Ramachandran, Mr.Venkat Sriramagiri,

Mr.Vishwas Santurkar, Mr.Vyomesh Joshi, Mr.William Arthur Owens, Ms.Ireena Vittal.

Company has BSR & Co. as its auditors. As on 30-Sep-2014, the company has a total of

2,467,775,393 shares outstanding.

PERFORMANCE OF TCS FROM 1ST October 2014 TO 28th February 2015.

Date Open Price High Price Low Price Close Price %of change01-Oct-14 1295 1309.8 1293.05 1302.95 003-Oct-14 1301 1325 1301 1322.65 1.51195404-Oct-14 1320 1321.65 1308.65 1317.15 -0.4158305-Oct-14 1310.25 1319.35 1055 1304 -0.9983708-Oct-14 1310 1315.25 1285.45 1292.7 -0.8665609-Oct-14 1297.9 1298.8 1285 1294.85 0.16631910-Oct-14 1286 1301.75 1285 1289.35 -0.4247611-Oct-14 1290.25 1301.55 1286.05 1289.45 0.00775612-Oct-14 1278.8 1313.65 1273.2 1298.45 0.69797215-Oct-14 1294 1302.4 1287.5 1294.65 -0.2926616-Oct-14 1297 1310.2 1287.8 1295.9 0.09655117-Oct-14 1301.3 1304.9 1272 1283.15 -0.9838718-Oct-14 1286.25 1311 1280.2 1307.35 1.88598419-Oct-14 1309 1311.4 1282 1289.7 -1.3500622-Oct-14 1325.1 1334.9 1303 1318.9 2.26409223-Oct-14 1324 1324 1311.9 1314.6 -0.3260325-Oct-14 1315 1323.9 1304.25 1315.35 0.05705226-Oct-14 1306.2 1322 1306.2 1315.3 -0.003829-Oct-14 1311 1319.8 1300.8 1308.4 -0.524630-Oct-14 1304.4 1322 1304.4 1311.5 0.23693131-Oct-14 1309.1 1316.8 1304 1315.5 0.30499401-Nov-14 1314.9 1320.35 1310.2 1315.25 -0.01902-Nov-14 1324.9 1338 1318.4 1331.2 1.21269705-Nov-14 1335.9 1343.35 1325.3 1329.6 -0.1201906-Nov-14 1325 1337.4 1319.45 1320.55 -0.6806607-Nov-14 1325 1333.35 1321.5 1331.5 0.829208-Nov-14 1324 1334.7 1316.6 1331.2 -0.0225309-Nov-14 1330 1333.25 1320.9 1324.95 -0.469512-Nov-14 1320 1348 1320 1334.5 0.72078213-Nov-14 1335.15 1337.2 1322.05 1325.3 -0.689415-Nov-14 1320.1 1322 1291 1294.15 -2.3504116-Nov-14 1299.8 1306.8 1280.1 1286.8 -0.5679419-Nov-14 1290.1 1295 1258.5 1262.35 -1.9000620-Nov-14 1275 1282.9 1256.05 1272.8 0.82782121-Nov-14 1276.25 1294.7 1276.25 1282.2 0.73852922-Nov-14 1282.1 1284.1 1271 1276.45 -0.4484523-Nov-14 1282 1291.4 1271.25 1288.6 0.95185926-Nov-14 1288 1295.7 1285 1293.7 0.39577827-Nov-14 1299.9 1299.9 1288.3 1295.2 0.11594729-Nov-14 1310 1312 1292.35 1298.1 0.223904

30-Nov-14 1295 1325 1291.1 1314 1.22486703-Dec-14 1315 1322 1305.2 1316.8 0.2130904-Dec-14 1315.1 1321.8 1292.9 1299.45 -1.3175905-Dec-14 1300 1307.55 1288.6 1297.9 -0.1192806-Dec-14 1295 1295 1269 1280.7 -1.3252207-Dec-14 1276.65 1280.7 1257.05 1264.15 -1.2922610-Dec-14 1262.1 1266.8 1231.2 1237.2 -2.1318711-Dec-14 1235 1243 1210.35 1219.7 -1.4144812-Dec-14 1224.9 1241 1221.1 1225.8 0.50012313-Dec-14 1230.1 1234.6 1217.1 1222.55 -0.2651314-Dec-14 1217 1245 1216.15 1242.9 1.66455417-Dec-14 1239.15 1248.9 1202.1 1205.5 -3.0090918-Dec-14 1214.7 1225 1197 1210.65 0.42720919-Dec-14 1216.1 1236.55 1216.1 1232.65 1.81720620-Dec-14 1227.15 1255 1227.15 1252.05 1.57384521-Dec-14 1250 1264.4 1237.7 1258.7 0.53112924-Dec-14 1262 1271.1 1260.1 1266.2 0.59585326-Dec-14 1267 1269.15 1255.3 1262.2 -0.3159127-Dec-14 1264.9 1264.9 1247.65 1250.95 -0.891328-Dec-14 1254 1272 1250.75 1267.5 1.32299531-Dec-14 1261 1265.6 1252 1255.85 -0.9191301-Jan-15 1266.95 1267.9 1260 1264.15 0.66090702-Jan-15 1267 1272.4 1255.55 1263.3 -0.0672403-Jan-15 1265 1284 1259.95 1280.6 1.36942904-Jan-15 1285 1301 1280.9 1299.2 1.45244407-Jan-15 1300 1304 1290.25 1294.85 -0.3348208-Jan-15 1295 1304.3 1294.3 1300.25 0.41703709-Jan-15 1301 1307.4 1273.15 1276.6 -1.8188810-Jan-15 1279.9 1282.1 1255.3 1258.4 -1.4256611-Jan-15 1290 1322.5 1290 1306.35 3.81039414-Jan-15 1319 1348.45 1307.35 1334.5 2.15485915-Jan-15 1390 1400 1327 1337.45 0.22105716-Jan-15 1336.9 1355 1309 1347.75 0.77012217-Jan-15 1349.7 1371.8 1343 1362 1.05731818-Jan-15 1362.5 1366.05 1338.05 1351 -0.8076421-Jan-15 1352.5 1354.9 1327.1 1330 -1.554422-Jan-15 1326 1331.7 1308.1 1317.5 -0.9398523-Jan-15 1315.75 1323.75 1298.4 1311.95 -0.4212524-Jan-15 1305 1336.9 1305 1328.55 1.26529225-Jan-15 1323.75 1345 1323.75 1340.5 0.89947728-Jan-15 1340.3 1349.95 1337.95 1345.05 0.33942629-Jan-15 1341.2 1356.55 1340.3 1344.95 -0.0074330-Jan-15 1341 1349.85 1335.8 1346.15 0.089223

31-Jan-15 1348.85 1352.45 1326.4 1344.15 -0.1485701-Feb-15 1344 1352 1342.15 1348.1 0.29386604-Feb-15 1349 1367.8 1345.15 1356.35 0.61197205-Feb-15 1345.1 1365 1345.1 1360.05 0.27279106-Feb-15 1362.5 1375.9 1362 1370.55 0.7720307-Feb-15 1361 1390 1361 1387.15 1.21119308-Feb-15 1386 1437 1385.1 1422.6 2.555611-Feb-15 1424 1428.9 1412.25 1414.7 -0.5553212-Feb-15 1409.05 1415 1401.85 1410.05 -0.3286913-Feb-15 1409.8 1441.65 1405.1 1435.4 1.79780914-Feb-15 1430.1 1455.8 1429 1447.7 0.85690415-Feb-15 1444 1451.8 1430.65 1442.15 -0.3833718-Feb-15 1440.1 1441.9 1420 1425.35 -1.1649319-Feb-15 1421.6 1448.9 1412.7 1443.55 1.27687920-Feb-15 1441.5 1457 1441.5 1452.8 0.64078121-Feb-15 1440.7 1456.85 1440.7 1451.05 -0.1204622-Feb-15 1450 1464.05 1442.3 1455.1 0.27910825-Feb-15 1453 1475 1451.5 1473.7 1.27826326-Feb-15 1467 1499.95 1466 1496.4 1.54034127-Feb-15 1495.25 1503.05 1477.3 1483.2 -0.8821228-Feb-15 1486.25 1525 1485.25 1517 2.278857

PERFORMACNE OF TCS

GROWTH = 1517-1502.95*100

1302.95

= 16.4%

DATA INTERPRETATION: Above data indicating performance of TCS for the given

period. Graph has taken with daily closing prices of the stock. And one can easily

understand if any investments, investing for short term, he has to ready to bear volatility.

Other than financial results few times changes in management and business risk also

become a cause to fall a stock. IT sector has international exposure when major

fluctuation happens in currency (dollar) it may be a cause for volatility. For the given

period TCS has given 16.4 % returns. In last 5 financial years also TCS has given better

returns when compare to all competitive IT stocks.

TCS RESULTS:

Money control Bureau

Tata Consultancy Services   (TCS) topped market expectations on Monday with a third

quarter net profit of Rs 3,551 crore, up 1 percent (up 23 percent from a year ago), helped

by new deal wins. The India's largest software services exporter's revenue rose 3 percent

sequentially (22 percent year-on-year) to Rs 16,070 crore.

Dollar revenues increased 3 percent to USD 2,948 million.

Analysts on average had expected TCS to report a net profit of Rs 3,410 crore on revenue

of Rs 15,950 crore in Oct-Dec, according to a CNBC-TV18 poll.

TCS met or beat analyst’s expectations on most parameters in the third quarter, which is

typically a seasonally weak quarter, and its CEO, N Chandrasekaran feels the clients will

continue to invest on tech in 2015.

He once again reiterated that the company hopes to grow ahead of the NASSCOM guidance of 11-15 percent growth in the current financial year

"While technology budgets are still being set for the next fiscal (year), there is little doubt

that technology is a key resource to help global businesses optimise their operations and

fuel growth in the current economic climate," said N Chandrasekaran, CEO and MD.

TCS' operating margin in the third quarter was up 218 basis points at 29.2%.

"We continue to focus on managing our operations optimally in the face of increased

external volatility. We have increased operating margins significantly by taking the

benefits of growth, exchange movements and by keeping a strong focus on cost

management," said S Mahalingam, CFO.

It signed a multi-year multi-million dollar deal with a North American healthcare

company, a large service management deal with a global financial services company in

the US, it won a contract  from a financial institution in Asia to upgrade and maintain

core systems and infrastructure and was selected by a US-based communications

company for a multi-year back-office transaction processing deal, among others.The

company said Europe business grew 18.1%, followed by US at 13.3% and UK grew by

9.5%, in the third quarter. Latin America revenue grew 18.6%, APAC (Asia-Pacific)

region saw a 15.7% growth, while revenues from India, were up 14.8%, it said.

"All industry sectors have shown strong growth with all sectors growing at more than

double digits except telecom," TCS said.

 TCS added 40 new clients in the third quarter and signed 10 large deals during the

quarter. The number of USD 100 million clients rose to 14 from 12, it said.

TCS net added 11,981 employees in Oct-Dec and had 226,751 employees as of Dec 31. It

plans to add 15,000 employees in the current quarter.

The company said attrition rate dropped to 12.8% in the quarter. Attrition in IT services

business was at 11.7%, while BPO (business process outsourcing) attrition was at 22.6%,

it said

PERFORMACNE OF ICICI BANK FROM 1ST October 2014 TO 28th February 2015

Date Open Price High Price Low Price Close Price %of change01-Oct-14 1060 1060.9 1046 1050.65 003-Oct-14 1052.2 1063 1046.25 1053 0.22367106104-Oct-14 1057.25 1093.9 1057.25 1083.4 2.88698955405-Oct-14 1100 1100 866.75 1066.7 -1.54144360308-Oct-14 1070 1070 1049.25 1052.2 -1.35933252109-Oct-14 1060 1073.65 1058.05 1064.15 1.13571564310-Oct-14 1056.25 1059.7 1048.65 1054.2 -0.93501855911-Oct-14 1060 1067.8 1048.2 1057.95 0.35571997712-Oct-14 1060.9 1062.9 1043.1 1044.75 -1.24769601615-Oct-14 1045.1 1055.6 1032 1053.4 0.8279492716-Oct-14 1061 1062.95 1040.1 1043.25 -0.96354661117-Oct-14 1053.25 1054.7 1042.1 1049.55 0.60388209918-Oct-14 1055.25 1066.8 1052.1 1064.95 1.46729550819-Oct-14 1061 1076 1050.1 1057.3 -0.71834358422-Oct-14 1052.8 1080.95 1050 1075.6 1.73082379623-Oct-14 1078.8 1087.85 1071.8 1079.45 0.35793975525-Oct-14 1070.1 1091.9 1070.1 1087.15 0.71332623126-Oct-14 1084.8 1102.8 1075.1 1078.35 -0.80945591729-Oct-14 1077 1084.4 1063.3 1068.45 -0.91806927230-Oct-14 1072 1087.3 1032.65 1045.15 -2.18072909431-Oct-14 1046 1054.9 1035.75 1050.2 0.48318423201-Nov-14 1052 1061 1045.3 1057.35 0.680822702-Nov-14 1072 1082.35 1065.6 1079.65 2.109046205-Nov-14 1076 1080.9 1067.45 1077.65 -0.18524521806-Nov-14 1071.5 1087.5 1068.2 1080.7 0.28302324507-Nov-14 1086.1 1099.75 1080.05 1092.95 1.13352456708-Nov-14 1080 1082.9 1071.2 1076 -1.55084862109-Nov-14 1076.3 1078 1054.5 1059.2 -1.5613382912-Nov-14 1061.5 1070.9 1053.15 1058.4 -0.07552870113-Nov-14 1059.85 1063 1055.05 1059.75 0.1275510215-Nov-14 1054.8 1057.35 1043.45 1054.65 -0.48124557716-Nov-14 1047.6 1052.05 1022 1027.3 -2.59327739119-Nov-14 1028.1 1033.4 1016.2 1021.15 -0.59865667320-Nov-14 1030.8 1034.15 1015 1024.1 0.28888997721-Nov-14 1030 1047 1026.55 1044.45 1.98711063422-Nov-14 1045.5 1054 1030 1032.6 -1.13456843323-Nov-14 1037.6 1038.95 1020.2 1025.1 -0.72632190626-Nov-14 1035 1035 1015 1018.3 -0.66334991727-Nov-14 1030.4 1037.25 1025.25 1034.1 1.55160561729-Nov-14 1050 1086 1045.65 1081.75 4.60787157930-Nov-14 1100 1104.95 1090.7 1099.85 1.67321469803-Dec-14 1095 1113.65 1093.2 1102.3 0.222757649

04-Dec-14 1102 1122.6 1095.55 1119.35 1.54676585305-Dec-14 1121.9 1128 1108.15 1119.8 0.04020190306-Dec-14 1132 1143 1102 1135.7 1.4198964107-Dec-14 1140.3 1144.45 1122.15 1131.7 -0.35220568810-Dec-14 1140 1140.35 1118.2 1121.45 -0.90571706311-Dec-14 1124.95 1149.5 1108.4 1122.65 0.10700432512-Dec-14 1128.35 1132.8 1106.35 1113.2 -0.8417583413-Dec-14 1120 1133.45 1115.5 1121.25 0.72314049614-Dec-14 1116 1139.45 1113.4 1136.05 1.31995540717-Dec-14 1130.25 1149 1130.25 1144.1 0.70859557218-Dec-14 1147 1153.4 1118.8 1148.95 0.42391399419-Dec-14 1155.1 1158.65 1133.05 1138.75 -0.88776709220-Dec-14 1144.8 1145 1130.1 1139.65 0.07903402921-Dec-14 1133.9 1139 1117.2 1123.9 -1.38200324724-Dec-14 1129.7 1130 1114.2 1121.5 -0.2135421326-Dec-14 1126 1150 1121 1148.65 2.42086491327-Dec-14 1152.25 1153.8 1132.5 1136.45 -1.06211639828-Dec-14 1142.6 1146.5 1129.8 1141.55 0.44876589431-Dec-14 1141.5 1143.9 1134.2 1138.25 -0.28908063601-Jan-15 1146.4 1161.95 1143.1 1158.45 1.77465407402-Jan-15 1170 1177 1165 1174 1.34231084603-Jan-15 1177.05 1178 1165.3 1172.05 -0.16609880704-Jan-15 1172.9 1184.9 1165.05 1182.4 0.88306812807-Jan-15 1188 1188 1177 1182.15 -0.02114343708-Jan-15 1179.15 1182 1170.25 1179.55 -0.21993824809-Jan-15 1178.25 1187.9 1173.7 1180.45 0.07630028410-Jan-15 1186.25 1188 1161.25 1179.5 -0.08047778411-Jan-15 1184 1184.4 1159.1 1163.55 -1.3522679114-Jan-15 1165 1192 1165 1185.15 1.85638777915-Jan-15 1183.2 1211.15 1174.1 1204.35 1.62004809516-Jan-15 1204.35 1207 1176.4 1179.85 -2.03429235717-Jan-15 1177.25 1187.2 1158.2 1162.5 -1.47052591418-Jan-15 1165.5 1186.2 1165.5 1176.2 1.17849462421-Jan-15 1180 1182.45 1165 1177.55 0.11477639922-Jan-15 1176.2 1194.85 1164 1170.15 -0.62842342223-Jan-15 1175 1192 1161.6 1181 0.92723155224-Jan-15 1179.85 1186.65 1157.6 1164.5 -1.39712108425-Jan-15 1170.2 1180 1163.6 1172.95 0.72563331928-Jan-15 1173.6 1194.4 1172.15 1190.25 1.47491367929-Jan-15 1195.85 1228 1182 1201.2 0.91997479530-Jan-15 1205 1222.55 1203.85 1212.7 0.95737595731-Jan-15 1207 1232 1186.3 1191.15 -1.7770264701-Feb-15 1194 1203.3 1167.65 1171.15 -1.679049658

04-Feb-15 1184 1202.8 1178 1181.75 0.90509328405-Feb-15 1166 1179.3 1162.05 1166.05 -1.32853818506-Feb-15 1173 1173 1150.8 1155.25 -0.92620385107-Feb-15 1152.35 1166.95 1136.55 1144.85 -0.90023804408-Feb-15 1146.05 1149.75 1124.8 1130.15 -1.28401100611-Feb-15 1132.3 1134.35 1117.05 1122.7 -0.6592045312-Feb-15 1121.5 1134 1114.1 1128.85 0.54778658613-Feb-15 1137 1146.4 1131.4 1142.6 1.21805377214-Feb-15 1148 1149.8 1120.6 1126.2 -1.43532294815-Feb-15 1126 1131 1111.1 1121.85 -0.38625466218-Feb-15 1124.4 1130 1119.5 1122 0.01337077119-Feb-15 1123.25 1134 1114.6 1131.4 0.83778966120-Feb-15 1136 1137.85 1118.7 1121.55 -0.87060279321-Feb-15 1112.25 1114.35 1076 1079.6 -3.74035932422-Feb-15 1077.05 1099 1077.05 1092.55 1.1995183425-Feb-15 1099 1101.85 1081.2 1093.9 0.12356413926-Feb-15 1088 1088.85 1052.55 1064 -2.73333942827-Feb-15 1069.55 1088.95 1069 1083.15 1.7998120328-Feb-15 1092 1094.8 1030 1040.4 -3.94682177

PERFORMANCE OF ICICI BANK

Growth = 1040.40 – 1050.65 *100

1050.65

= - 0.97%

Data interpretation: The above chart indicating performance of ICICI BANK for the

given period. Inflation and interest rates plays major role in banking industry. If

government fails to control inflation, it’s highly impossible to control interest rates also.

According to RBI data in last three months (January, February & March) inflation

numbers increased by 21.18% because of hike in daily commodity prices.

ICICI bank closed in 1% negative in the above data when compare to starting day to

ending day. In the month of February itself, stock fall close to 14%. As on 25th February

closing, stock is in profit of close to 4% from starting day, but due to budget impact stock

fall above 5% in last 2 days.

ICICI BANK RESULTS

India's largest private sector lender ICICI Bank  's third quarter (October-December)

standalone net profit jumped more than 30% year-on-year to Rs 2,250 crore, driven by

robust net interest income, which increased 29% to Rs 3,500 crore. Other income too

climbed 17% to Rs 2,215 crore adding to the profit margin.

"The rise in profit came on the back of growth and efficiency parameters," Chanda

Kochhar, MD & CEO, ICICI Bank told reporters in a conference call.

"Going forward, we expect slight improvement in net interest margin by a few basis

points. Our growth in loans is well-balanced. We would grow our retail loans at 20%.

Also, there is a room for growing our international business wherein the net interest

margin stood at 1.3%," she said.

Analysts on an average were expecting profit after tax at Rs 2,077 crore and net interest

income at Rs 3,499 crore for the quarter.

The bank expanded its loans by 16% y-o-y to Rs 2.87 lakh crore while the deposits grew

at a slower pace by about 10% to Rs 2.86 lakh crore.

The share of current and savings account (CASA) was at 40.9% as against 40.7% in the

second quarter. CASA is a source of cheap funds for banks. Net interest margin logged a

rise of 37 basis points to 3.07% y-o-y.

Provisions against bad loans inched up to Rs 369 as against Rs 341 crore a year back.

However, the same came down in comparison with the July-September quarter recorded

at Rs 508 crore. Provision coverage ratio stood at 77.7% as on December 31.

"In Q2 provisions were up due to one single corporate account which we had provided

for. Earlier, we had sold our credit exposure in Kingfisher airlines. Currently, we do not

have any plan for selling our (stressed) loan portfolios," Kochhar said.

During the quarter, the gross non-performing asset (NPA) ratio improved from 3.54% to

3.31% quarter-on-quarter. Net NPA ratio was at 0.76% compared with 0.78% a quarter

back. Net restructured book remained at Rs 4,169 crore, little changed from the previous

quarter.

ICICI Bank, according to Kochhar, does not need to raise any equity capital in the near

term. Its capital adequacy ratio was 19.53% of which tier-I (equity capital) was at 13.25%

as on December 31.

At 14.40 hrs, ICICI Bank shares were trading at Rs 1,196, down more than 1% on

NSE. Earlier in the trading session however, those hit 52-week high of Rs 1,232 before

the results announcement.

"There were high hopes of better-than-expected results. Some traders were speculating on

that. Though, the bank has reported good set of numbers but there is nothing to cheer

about it. Some amount of profit booking has led to the fall in share price," said a banking

analyst from a foreign brokerage firm.

PERFORMANCE OF HDFC BANK from October 1st 2014 to 28th February 2015

Date Open Price High Price Low Price Close Price %of change01-Oct-14 629 632 620 622.85 003-Oct-14 624 626.8 617.95 619.45 -0.545877804-Oct-14 621.5 633.9 621.45 631.3 1.9129873305-Oct-14 638 638.65 505.05 622.4 -1.409789308-Oct-14 623.9 623.9 616.55 620.7 -0.273136209-Oct-14 624.95 630.5 622 625.75 0.81359755

10-Oct-14 624 624 616.2 617.95 -1.246504211-Oct-14 621.15 627.8 618.45 624.85 1.1165951912-Oct-14 630 635 626 631.15 1.0082419815-Oct-14 632.4 634.9 622.6 634.15 0.4753228216-Oct-14 635.25 635.5 628.1 630.4 -0.591342717-Oct-14 632 632.5 626.5 628.1 -0.364847718-Oct-14 630 637.9 624.45 636.2 1.2896035719-Oct-14 632 635 627 628.5 -1.210311222-Oct-14 625.2 640 625.2 639 1.6706443923-Oct-14 639.05 639.5 632.5 634.1 -0.766823225-Oct-14 632.65 641 629 637.35 0.5125374526-Oct-14 636.65 639.8 631 637.15 -0.031379929-Oct-14 637.85 642.5 635.55 640.6 0.5414737530-Oct-14 637.05 644.8 630.6 633.65 -1.084920431-Oct-14 634.1 635.9 630.05 634.2 0.0867987101-Nov-14 632.75 635.7 627.5 628.6 -0.883002202-Nov-14 638 638 628 630.3 0.2704422505-Nov-14 632 636 630.75 635 0.7456766606-Nov-14 633.95 641.2 633.95 639.55 0.7165354307-Nov-14 639.75 645 636.9 640.05 0.0781799708-Nov-14 636.5 641 635.5 639 -0.164049709-Nov-14 638.25 643 635 639.35 0.0547730812-Nov-14 637.25 653.8 637.25 651.3 1.8690857913-Nov-14 651 651.9 646.2 647.05 -0.652541115-Nov-14 647 647.4 639 646.25 -0.12363816-Nov-14 643 648.6 640.15 642.25 -0.618955519-Nov-14 639.75 647.9 639.45 646.75 0.7006617420-Nov-14 649.1 655.9 648.25 653.85 1.0977966821-Nov-14 655.15 665.5 649.7 663.7 1.5064617322-Nov-14 666.8 671.15 664 669.1 0.8136206123-Nov-14 669.5 672.6 659.05 669.75 0.0971454226-Nov-14 673 673.7 660.1 661.9 -1.172079127-Nov-14 664.9 683.8 664.9 680.5 2.8100921629-Nov-14 677.5 703.75 675.4 699.85 2.8434974330-Nov-14 701 705.5 689.6 703.95 0.5858398203-Dec-14 700 701.15 684 686.95 -2.414944204-Dec-14 684.1 690 681.05 685.15 -0.262027805-Dec-14 689 695 687 692.6 1.0873531306-Dec-14 695.8 698.5 680.8 694.75 0.3104244907-Dec-14 695.25 698 688 693.1 -0.237495510-Dec-14 690 696.5 689.65 693 -0.014427911-Dec-14 695.25 699 686.3 690.85 -0.310245312-Dec-14 691.25 696 688.5 693.85 0.43424767

13-Dec-14 693.85 696 689 691.05 -0.403545414-Dec-14 690.05 694.4 685.35 688.75 -0.332826917-Dec-14 687.9 687.9 673.6 676.5 -1.778584418-Dec-14 677.95 682.2 669.75 675.95 -0.081300819-Dec-14 674.55 689.25 674.5 688 1.7826762320-Dec-14 686 687 680.25 683.4 -0.668604721-Dec-14 681 682 674.05 676 -1.082821224-Dec-14 680 680.15 671.8 676.1 0.014792926-Dec-14 678.1 684.85 673.1 680.3 0.6212098827-Dec-14 684 684 676.7 680.1 -0.029398828-Dec-14 681.1 683 674.15 677.65 -0.360241131-Dec-14 677 680 674 678.6 0.1401903601-Jan-15 682.1 685.1 679.65 684.5 0.8694370802-Jan-15 689.9 690 683.05 687.35 0.4163623103-Jan-15 690 690 680.4 683.35 -0.581945204-Jan-15 685 685 672.8 679.35 -0.585351607-Jan-15 683.7 683.7 666 668.2 -1.641274708-Jan-15 668 673.4 665.7 670.25 0.3067943709-Jan-15 672 672.55 666.05 667.5 -0.410294710-Jan-15 669.5 678 666.5 675.8 1.2434456911-Jan-15 676.9 676.9 666.7 669.3 -0.96182314-Jan-15 668.15 670.5 667.1 669.3 015-Jan-15 670.8 675.45 665 668.3 -0.149409816-Jan-15 665.55 669.2 657.6 660.5 -1.167140517-Jan-15 657.7 670.85 654.05 666.8 0.9538228618-Jan-15 670 674 655.3 662.85 -0.592381521-Jan-15 660 663.4 654.75 658.55 -0.648713922-Jan-15 658.5 661 647.55 653.75 -0.72887423-Jan-15 657 663 654.35 656.6 0.4359464624-Jan-15 655.6 662.75 655.25 660.3 0.5635089925-Jan-15 660.3 667 655.55 665.05 0.7193699828-Jan-15 665.25 672 664.45 670.35 0.7969325629-Jan-15 670.75 670.9 650 652.45 -2.670246930-Jan-15 653 658.4 644 656.65 0.6437274931-Jan-15 656.6 657.9 640.1 643.05 -2.071118601-Feb-15 644.8 644.85 636.2 640.15 -0.450975804-Feb-15 641.15 649.5 640 646.9 1.0544403705-Feb-15 636.35 647.2 636.35 644.15 -0.425104306-Feb-15 646.6 646.9 637.2 639.5 -0.721881507-Feb-15 636.3 643 634.55 641.5 0.3127443308-Feb-15 640.5 653.4 640.5 650.05 1.3328137211-Feb-15 650 659.95 650 656.95 1.0614568112-Feb-15 655.65 667 655.65 665.2 1.25580333

13-Feb-15 663.3 667.4 659.5 664.2 -0.150330714-Feb-15 664 678.4 662 674.8 1.5959048515-Feb-15 671.7 680.8 668.2 676.75 0.2889745118-Feb-15 678 680.9 674 676 -0.110823819-Feb-15 674.5 677.4 671.55 674.8 -0.177514820-Feb-15 677.5 680.8 674.9 676.95 0.3186129221-Feb-15 675 677.45 664.05 666.25 -1.58061922-Feb-15 662.2 666.4 657.55 659.3 -1.04315225-Feb-15 663.25 665.2 654.1 656.45 -0.432276726-Feb-15 654.8 663 645.4 651.25 -0.792139527-Feb-15 652.3 654 640.9 642.75 -1.305182328-Feb-15 646.95 654.95 619.35 625.35 -2.7071179

PERFORMACNE OF HDFC BANK

Growth = 625.35 – 622.85 *100

622.85

= 0.40%

DAT A INTERPRETATION: The above chart indicating performance of HDFC bank

for the given period. Where the stock records very low fluctuations ups and downs, but

closed near to open price only. Stock opened at 629 and created a high price of 705.5, in

the end of November created low value of 615.20 and by 28th February stock reached to

625.35. It seems stock has moved 15% from low to high in five months. Where, investors

have low risk and low returns.

HDFC BANK results

Money control Bureau

India's second largest private sector lender HDFC Bank   on Friday reported a

persistent 30% year-on-year jump in its third quarter net profit at Rs 1,859 crore, driven

by robust growth in other income and loan expansions. Since the last 30-31 successive

quarters, the net profit growth has been in the range of 30-31%.

During the quarter, net interest income or the difference between interest earned and paid

out, rose nearly 22% to Rs 3,800 crore. Other income increased 27% to Rs 1,800 crore

aided by growth in fee and commission income.

The quarterly numbers were almost in line with analyst expectations barring a small blip

in non-performing assets. Gross non-performing asset (NPA) ratio rose to 1% as against

0.91% in the July-September quarter. Net NPA ratio remained at 0.20%, little changed

from the previous quarter. Provisions and contingencies stood at Rs 307, up by Rs 14

crore from the previous quarter.

"The bank's provisioning policies for specific loan loss provisions remained higher than

regulatory requirements. The NPA coverage ratio based on specific provisions (not

including write-offs, technical or otherwise) was at 80% as on December 31, 2014. Total

restructured loans (including applications received and under process for restructuring)

were at 0.3% of gross advances as of December 31, 2014," HDFC Bank said in a press

release.

During the three month period, the loan book expanded more than 24% y-o-y to Rs 2.41

crore. Retail loans escalated about 30% y-o-y to Rs 1.30 lakh crore. This is way above

the industry credit growth at around 16%. However, the bank refrains from lending long

term significantly. Project finance, launched more than a year back, currently stands

around 4% of the loan book. 

PERFORMANCE OF SBIN FROM 1ST October 2014 TO 28th February 2015

Date Open Price High Price Low Price Close Price %of change01-Oct-14 2242.4 2278.7 2240.2 2270.15 003-Oct-14 2280.95 2302.35 2253.05 2296.9 1.1783362304-Oct-14 2310 2349 2304.25 2345.7 2.1246027305-Oct-14 2350 2362.55 2011.3 2339.45 -0.26644508-Oct-14 2340.5 2340.5 2261.3 2269.45 -2.992156309-Oct-14 2293.9 2306 2257.3 2282.55 0.5772323710-Oct-14 2258 2263.85 2218.5 2223.55 -2.584828411-Oct-14 2227 2283.7 2191.4 2267.15 1.9608284112-Oct-14 2269.7 2294.45 2245.1 2251.75 -0.679266915-Oct-14 2248 2269.65 2230.8 2264.45 0.5640057716-Oct-14 2270.45 2285 2223.9 2228.85 -1.572125717-Oct-14 2246.2 2255.9 2202.1 2214.7 -0.634856518-Oct-14 2228.35 2283.7 2207 2278.2 2.8672054919-Oct-14 2270 2279.85 2234 2257.75 -0.897638522-Oct-14 2227 2259.9 2225.25 2240.95 -0.744103623-Oct-14 2240 2267.95 2230.55 2234.7 -0.278899625-Oct-14 2239.8 2250.35 2195 2199.35 -1.581867826-Oct-14 2185 2204.7 2161 2173.35 -1.182167529-Oct-14 2172.85 2204.45 2156.85 2167.7 -0.259967330-Oct-14 2169 2199.8 2065.55 2074.3 -4.308714331-Oct-14 2072 2114.6 2057.55 2110.25 1.7331147901-Nov-14 2112 2124.6 2098.45 2115.5 0.2487856902-Nov-14 2140 2159 2125.1 2152.45 1.74663205-Nov-14 2142.9 2153.8 2128.2 2144.75 -0.357731906-Nov-14 2130.95 2177.5 2130.95 2173.15 1.3241636607-Nov-14 2168.35 2229.7 2164.5 2217 2.0178082508-Nov-14 2189 2266.9 2182.25 2242.3 1.1411817809-Nov-14 2236.6 2269.35 2148 2155.05 -3.89109412-Nov-14 2165.1 2194.9 2124.05 2190.3 1.6356929113-Nov-14 2189.9 2190.1 2160 2171.35 -0.8651783

15-Nov-14 2152 2182 2138.4 2153.7 -0.812858416-Nov-14 2153.7 2169.95 2101.1 2108.45 -2.101035419-Nov-14 2124 2124 2084.4 2093.9 -0.690080420-Nov-14 2110 2118.8 2053 2066.5 -1.30856321-Nov-14 2071 2074.4 2041 2061 -0.266150522-Nov-14 2067.6 2114.55 2067.6 2098.45 1.8170790923-Nov-14 2110 2111.45 2075.3 2089.5 -0.426505326-Nov-14 2096.5 2109.65 2080 2091.9 0.1148600127-Nov-14 2101.7 2123.05 2095 2115.15 1.111429829-Nov-14 2128.15 2142 2105.65 2131.85 0.7895421130-Nov-14 2149 2187 2145.6 2170.3 1.8035978103-Dec-14 2180 2210 2173.5 2204.05 1.5550845504-Dec-14 2208 2249.2 2202.4 2239.55 1.6106712605-Dec-14 2248 2283 2245.2 2271.8 1.4400214306-Dec-14 2281 2317.95 2240 2307.2 1.5582357607-Dec-14 2316.4 2339.6 2300.05 2316.2 0.3900832210-Dec-14 2322.4 2326.8 2301.1 2320.25 0.1748553711-Dec-14 2329.7 2338.55 2282.7 2308.8 -0.493481312-Dec-14 2310 2317.95 2286.4 2294.9 -0.602044413-Dec-14 2302.5 2325 2255.1 2262.6 -1.407468714-Dec-14 2266.15 2327 2253.85 2320.25 2.5479536817-Dec-14 2318.75 2349 2311.95 2344.3 1.0365262418-Dec-14 2350 2382 2279 2372.7 1.2114490519-Dec-14 2385 2408.15 2362.75 2372.3 -0.016858420-Dec-14 2368.45 2398.8 2342.55 2381.25 0.37727121-Dec-14 2355.1 2376.65 2327.5 2334.45 -1.965354324-Dec-14 2340 2359 2325 2331.3 -0.134935426-Dec-14 2336.7 2380 2323 2370.85 1.6964783627-Dec-14 2370.85 2397.5 2362.7 2388.35 0.7381318928-Dec-14 2394 2397.35 2369.1 2379.5 -0.370548731-Dec-14 2370 2396.7 2368.65 2385.5 0.2521538101-Jan-15 2404.9 2434.05 2397.55 2426.45 1.7166212502-Jan-15 2450 2464 2438.15 2450.55 0.9932205503-Jan-15 2460 2482.4 2436.2 2471.6 0.8589908404-Jan-15 2460 2492.95 2450.65 2486.7 0.6109402807-Jan-15 2490 2499 2461.75 2467.6 -0.768086208-Jan-15 2468 2500 2463 2493.35 1.0435240709-Jan-15 2494 2540 2494 2522.8 1.1811418410-Jan-15 2539.95 2551.7 2522.5 2539.1 0.646107511-Jan-15 2549 2550 2483.25 2491.05 -1.892402814-Jan-15 2491 2519.95 2475.2 2499.75 0.3492503215-Jan-15 2505 2517.4 2470.2 2489.85 -0.396039616-Jan-15 2480 2493.5 2424 2432.4 -2.3073679

17-Jan-15 2425.5 2482.45 2423 2469.85 1.5396316418-Jan-15 2485 2517.65 2478.1 2492.05 0.8988400121-Jan-15 2495 2511.4 2490.1 2499.45 0.2969442822-Jan-15 2490 2509 2454.4 2464.45 -1.400308123-Jan-15 2471 2492.05 2452.15 2480.4 0.6472032324-Jan-15 2480 2484.35 2440.55 2459.15 -0.856716725-Jan-15 2459.7 2524.8 2448 2513.7 2.2182461428-Jan-15 2525 2533.8 2483 2491.55 -0.881171229-Jan-15 2490.55 2535 2455.05 2462.45 -1.167947730-Jan-15 2477 2487 2426.6 2436.1 -1.070072531-Jan-15 2436 2456.65 2416.15 2438 0.0779935101-Feb-15 2431 2452.1 2401 2412.35 -1.052091904-Feb-15 2417.5 2429.25 2345 2352.6 -2.476837905-Feb-15 2350 2380.6 2328.1 2371.5 0.8033664906-Feb-15 2385 2387.9 2342 2348.7 -0.961416807-Feb-15 2334 2364 2320.15 2326.6 -0.940946108-Feb-15 2320 2342.9 2276.1 2286.15 -1.738588511-Feb-15 2289.9 2311.9 2277.35 2294.35 0.3586816312-Feb-15 2301 2307.6 2278.8 2296.4 0.0893499213-Feb-15 2302 2323.25 2242.5 2254.7 -1.815885714-Feb-15 2250 2269 2175 2215.75 -1.727502615-Feb-15 2207 2247.7 2205.15 2233.45 0.7988265818-Feb-15 2235 2268.8 2235 2262.7 1.3096330819-Feb-15 2268.85 2280 2237 2273.5 0.4773058720-Feb-15 2285 2287.15 2246.6 2252.05 -0.943479221-Feb-15 2239.4 2242.95 2200.15 2210.55 -1.842765522-Feb-15 2211 2225.45 2190.05 2196 -0.658207225-Feb-15 2210 2239 2201.05 2220.9 1.1338797826-Feb-15 2208 2216 2188.65 2198.4 -1.013102827-Feb-15 2212.45 2232.65 2197 2213.4 0.6823144128-Feb-15 2234 2236.7 2051 2080.9 -5.9862655

PERFORMANCE OF SBIN

DATA INTERPRETATION: The above data indicating performance of SBIN for the

given period. Recorded highest intraday fluctuations and more bearish days than bullish

days, this is the one cause stock fall close to 8.5% in 5 months. One of the major reason

for fall impact of railway budget and Central budget, stock fall 6% at end of February. On

results day also stock moved into negative zone. Here few more causes impacting stock

to fluctuate ups and downs, the same explained graphically with above intraday graph

SBIN RESULTS:

Money control Bureau

India's largest lender, State Bank of India 's (SBI) has posted a better than expected third

quarter (Oct-Dec) performance. State Bank of India has posted a net profit after Minority

Interest of Rs. 46484.40 mn for the quarter ended December 31, 2014 as compared to Rs.

43180.80 mn for the quarter ended December 31, 2013.

Total Income has increased from Rs. 431064.90 mn for the quarter ended December 31,

2013 to Rs. 509421.40 mn for the quarter ended December 31, 2014.

Net NPA ratio increased to 2.58% compared with 2.44%. However, both ratio improved

when it is compared year-on-year basis.

Other income zoomed more than 75% Y-o-Y to Rs 3,648 crore. Net interest margin

(NIM) contracted marginally from 3.77% in Q2 to 3.72% in Q3, 2014-15.

India's largest lender expanded its loan book nearly 16% to Rs 9.78 lakh crore. Gross

non-performing asset ratio increased to 5.30% (at Rs 53,460 crore) as against 5.15% in

the July-September quarter, suggesting that asset quality pain is not yet fully over. Net

NPA ratio increased to 2.58% compared with 2.44%. However, both ratio improved

when it is compared year-on-year basis.

Accordingly, provisions for bad loans upped 46 percent quarter-on-quarter to Rs 2,766

crore. The same was at Rs 3,000 crore (excluding a write-back of investment provision at

Rs 870 crore) a year back.

CORRELATION: Based on above data applied correlation matrix for analysis.

CORRELATION MATRIX AMONG NIFTY, IT SECTOR & IT SECTOR STOCKS

NIFTY IT INFOSYS WIPRO

IT 0.212973

INFOSYS 0.116784 0.950845

WPIRO 0.282876 0.578237 0.483623

TCS 0.132959 0.667839 0.448695 0.32918

WITH NIFTY:

1. Nifty to IT sector correlation is 0.212973 so; it’s positive correlation

between nifty and IT sector.

2. Nifty to IT sector companies like Infosys,Wipro,Tcs correlation also

indicating positive correlation

WITH IT SECTOR:

1. IT sector to IT sector companies values also in positive 0.954872, 0.699809 &

0.807348 respectively. Here we can see positive correlation

WITH IT SECTOR COMPANIES:

1. Infosys to Wipro 0.483623, positive correlation and Infosys to TCS 0.448695

positive correlation and Wipro to TCS is 0.32918, indicating positive correlation.

CORRELATION MATRIX AMONG NIFTY, BANKING SECTOR & BANKING

SECTOR STOCKS

NIFTY BANKING HDFC ICICI

BANKING 0.910833

HDFC 0.555551 0.648717

ICICI 0.81517 0.868226 0.400572

SBI 0.709642 0.77513 0.329788 0.552616

Above table indicating correlation between NIFTY to BANKING sector and nifty to

HDFC, ICICI, SBI and inter companies correlation. The correlation values taken with the

help of 5 months data from 01st October 2014 to 28th February 2014.

WITH NIFTY:

1. NIFTY to banking sector correlation is 0.910833. Indicating positive

correlation.

2. NIFTY to all the banking sector companies HDFC, ICICI, SBI correlation

values 0.555551 and 0.81517 and 0.709642 respectively. Here also

indicating positive correlation.

WITH SECTOR:

1. Banking sector to all the companies in the sector correlation values are 0.555551,

0.81517, 0.709642 respectively indicating positive correlation.

WITH BANKING SECTOR COMPANIES:

1. HDFC to ICICI 0.400572 and HDFC to SBI 0.329788 & ICICI to SBI 0.552616,

so inter companies’ correlation also positive in banking sector.

Correlation with intra sector companies

ICICI HDFC SBIN

INFOSYS -0.04036 -0.05632 -0.04795

WPIRO 0.13021 0.12958 0.105676

TCS -0.02098 0.121876 -0.10309

WITH INTRA LINKED COMAPNIES

The above table indicating intra companies correlation.

1. ICICI to INFOSYS, negative correlation.

2. ICICI to WIPRO , positive correlation

3. ICICI to TCS , negative correlation

4. HDFC to INFOSYS, negative correlation

5. HDFC to WIPRO, positive correlation.

6. HDFC to TCS, positive correlation

7. SBIN, to INFOSYS, negative correlation.

8. SBI, to WIPRO , positive correlation

9. SBIN ,to TCS, negative correlation.

CHAPTER 5

Findings, Suggestions &

Conclusion

FINDINGS: All stocks from NSE will not have same weight, based on previous history of

company and traded volume company weight decided by NSE. Reliance group of

stock has more weight in index.

Sector Indices only weight of respective sector stocks only. But nifty is weight of

all sector stocks.

On account of Railway budget market fall close to 80 points and on account of

GENERAL budget, market fall close to 120 points. In special situations market

reacts with high volatility.

Inflation, interest rates, IIP, financial results, international markets and few other

factors like fii’s net selling and net buying are major causes for volatility.

Decreased share value is not an impact to decrease profits of company, because in

current market, share price purely based on speculation. If one can observe in

above analysis from 2008 to 2009 FY all stocks and Indices faces fall in their

prices, but the net profit was increased in the all stocks in the given period.

According to previous history about INFOSYS results impact during 2nd quarter

results announcement stock has shown growth instead of fall. But the same stock

fall after announcement of third quarter results.

The impact of Railway budget and general budget is negative on banking index

and Nifty. Both indices faced selling pressure and fall close to 3 to 5%

ICICI bank has given negative returns for the given period.

On 11th January 2015, IT index moved up 9.33% on account of 3rd quarter results

of Infosys.

FINDINGS WITH HISTORICAL DATA

o FY2007 TO 2014 Nifty has given 45.74%, IT 28.05% % BANKING has

given 105.90% and recorded as top.

o Infosys has given 49.05%, TCS has given 96.65% and WIPRO has given

41.5% and TCS recorded as top performer.

o SBIN has given 68.3%, HDFC 130.70% & ICICI bank has given 8.5%

and HDFC recorded as top performer.

o Highest performance by HDFC BANK

o Least performance by ICICI BANK.

NIFTY is always an average performance of 50 stocks, during the study nifty has

given only 45.74% where other companies might have given less performance or

high performance than nifty.

Maximum combinations proved positive correlation except few combinations for

the given data from 1st October 2014 to 28th February 2015 with all the sample

three indices and six companies.

Media is playing a vital role in stock market. Because now a day’s maximum

investors trading on NEWS based. Channels informing the support levels and

resistance levels time to time in the market. There is a chance to avoid high risk.

Infosys has major weight in IT index and also have second priority in Nifty, even

though Infosys unable to give better performance for the given period.

.

SUGGESTIONS: Based on my personal experience, I would like to suggest that direct equity

investments need more concentration than any other instruments. If an investor

really has time to monitor his investments then only he should give priority.

Diversified portfolio (Investments) always gives positive returns. Here investor

has to diversify his risk with multiple options.

When blue chip companies announcing financial results it’s better to enter call

option and put option.

Speculative trading is very risk, when investor follows support and resistance

levels he can avoid unwanted risks.

Better to avoid fresh investment in special situations like announcement of

financial results and budget, where investor’s have high risk.

CONCLUSION:Technology stocks bucked the broader market trend as the rupee weakened to its lowest level in 13 months. Pull-back was seen majors such as InfosysBSE 1.81 % and TCS, which had corrected sharply in the last few sessions.

The BSE IT Index closed up 1.66 per cent against 1.97 per cent fall in S&P Sensex.

The Indian rupee, alongwith other global currencies, is weakening against the US dollar. Outflows of funds from riskier assets also put pressure on the Indian rupee.

The partially convertible rupee was at 63.41 per dollar, down 47 paise, against its previous close of 62.94/95. The unit earlier dropped to intraday low of 63.54.

Indian IT companies tend to benefit from a weak rupee as it improves their margins and profitability. Not only currency, the sector is likely to benefit from pick-up in the US economy.

"We recommended buying TCS, Infosys, Tech Mahindra, HCL Tech, Persistent System and Mindtree yesterday. These are some of the names in .. the IT pack; as a disclosure, we do have a positive coverage. From an investment angle one can definitely buy them. It is not only the rupee-dollar equation that we are banking on, we are more optimistic on the business environment outlook going forward," said Gaurang Shah, VP, Geojit BNP Paribas Financial Services.

According to P Phani Sekhar, Fund Manager-PMS, Angel Broking, Indian IT can grow 15-17 per cent in rupee terms and around 10-12 per cent in dollar terms.

"Relatively this is a strong sector and valuations, as compared to say that other defensive like pharma or FMCG, are much more attractive. Infosys is trading at 14.5 times and TCSBSE 2.03 % at around 17.5 times. These are not at all difficult multiples when these companies will grow at around 20 per cent," he told ET Now.

HCL Tech closed at Rs 1,554.40, up 4.58 per cent, on the BSE. It rallied 5.28 per cent to touch intraday high of Rs 1,564.80.

TCS closed at Rs 2443.15, up 3. .. 

Read more at:http://economictimes.indiatimes.com/articleshow/45531788.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

BIBLIOGRAPHY:

Books : Investment analysis and portfolio management. by m.ranganatham &

r.madhumathi.

Security analysis. of icfai.

Financial markets and services. , by gordon & natrajan.

Investment management. , v.k. bhalla.

Research methodology, by c.r.kothari

Websites:www.nseindia.com

www.bseindia.com

www.sebi.org.in

www.moneycontrol.com