A PROJECT REPORT ON

“EQUITY ANALYSIS OF IT & BANKING STOCKS – A COMPARITIVE STUDY”

At

NETWORTH STOCK BROKING LIMITED

MASTER OF BUSINESS ADMINISTRATION

Submitted by:

G.AIYYAPPA

(ROLL NO: 09tf1e0015)

DEPARTMENT OF BUSINESS MANAGEMENT

PUJYA SHRI MADHAVANJI COLLEGE OF ENGINEERING &

TECHNOLOGY

JNT UNIVERSITY

HYDERABAD

1

(2009-2011)

DECLARATION

I herby declare that the project titled “EQUITY ANALYSIS OF

IT & BANKING STOCKS – A COMPARITIVE STUDY” done at Networth Stock Broking Limited submitted by

me as part of partial fulfillment for the award of the Masters of Business Administration, at P u j y a S h r i

M a d h a v a n j i C o l l e g e o f E n g i n e e r i n g a n d Te c h n o l o g y , J N T U Hyderabad is a record of bonafide

work done by me.

I also declare that this report has to my knowledge is my own and is neither submitted to any other university nor published

any time before.

(G.AIYYAPPA)

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ACKNOWLEDGEMENT

Accomplishment of any work involves many people and this project is no exception. I take this opportunity

to express my heartfelt thanks to all those who have directly or indirectly contributed to make this Project a

success.

I am indebted to the Management of Networth Stock Broking Ltd., for providing me the opportunity to

carry out the Project work in their esteemed organization.

I take this opportunity to express my heartfelt thanks to Mr. A VENKAT REDDY and the entire Equities

team at Networth for their cooperation and support during the project.

I am highly indebted to the Management of Mrs. Kanchana, H.O.D. Department of Business Management

for his valuable suggestions and advice.

It was great experience to work under the inspiring guidance of Mrs. Saritha Associate Professor,

Department of Business Management. I take this opportunity to express my gratitude to his valuable advice

and suggestions for completing this project.

At last, I would like to thank my family and friends of my college for the help and cooperation extended in

this endeavor of mine.

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ABSTRACT

For every company there is need of the large capital for making investment in business. In order to get that

large capital, the company will come for the public issue. When the company comes for public issue, people

will invest money in that specific stock. Here, Investment is defined as an activity that commits funds in any

financial form in the present with an expectation of receiving additional return in the future.

The expectations bring with it a probability that the quantum of return may vary from a minimum to a

maximum. This possibility of variation in the actual return is known as investment risk. Thus every

investment involves a certain amount of return and risk.

Risk analysis is a technique to identify and assess factors that may jeopardize the success of a project or

achieving a goal. This technique also helps to define preventive measures to reduce the probability of these

factors from occurring and identify countermeasures to successfully deal with these constraints when they

develop to avert possible negative effects on the competitiveness of the company.

Return on Equity (ROE)

Sometimes ROE is referred to as Stockholder's return on investment. It tells the rate that shareholders are

earning on their shares..The rate of interest or dividend may be decided by the company.

ROE = Net Income after Tax

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Share shoulders Equity

Net worth has been successfully providing premium financial services and information for more than a

decade. Our aim has consistently been to empower investors to take charge of their financial future & help

them grow their Net worth.

 Net worth has always endeavored to make a difference in the financial services space. It constantly focuses

on scaling and upgrading the technology infrastructure so as to provide the best services to the investors. We

have a presence of over 300 centre’s across India

In spite of many private stock houses at present involved in online trading in India, the NSE and BSE are

among the largest exchanges. They handle huge daily trading volumes, supporting large amounts of data

traffic, and possessing a countrywide network. The automated online systems used for trading by the

national stock exchange and the Bombay stock exchange are the NIBIS or NSE's Internet Based Information

System and NEAT for the national stock exchange and the BSE Online Trading system or BOLT for the

Bombay stock exchange.

The data that is used in this project is of secondary in nature. The data is to be collected from secondary

sources such as various websites, journals, newspapers, books, etc., the analysis used in this project has been

done using selective technical tools. In Equity market, risk is analyzed and trading decisions are taken on

basis of technical analysis.

Sample size of the industry sector: 2 sectors (Software & Banking)

Sample size of the companies in each sector: 3

We compare both sectors of Information Technology and Banking sector.

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CHAPTER PAGE NO'S

CHAPTER 1

INTRODUCTION

OBJECTIVE OF THE STUDY

NEED & SIGNIFICANCE OF THE STUDY

RESEARCH METHODOLOGY

LIMITATIONS OF THE STUDY

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10

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CHAPTER 2

IT PROFILE

BANKING PROFILE

COMPANY PROFILE

INDUSTRY PROFILE

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40

CHAPTER 3

ANALYSIS

INTERPRETATIONS

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61

CHAPTER 4

FINDINGS AND SUGGESTIONS

CONCLUSION

BIBILIOGRAPHY

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INTRODUCTION

Investment may be defined as an activity that commits funds in any financial form in the present with an

expectation of receiving additional return in the future. The expectations bring with it a probability that the

quantum of return may vary from a minimum to a maximum. This possibility of variation in the actual

return is known as investment risk. Thus every investment involves a return and risk.

Investment is an activity that is undertaken by those who have savings. Savings can be defined as the excess

of income over expenditure. An investor earns/expects to earn additional monetary value from the mode of

investment that could be in the form of financial assets.

Investment

There are a large number of investment avenues for savers in India. Some of them are marketable and

liquid, while others are non-marketable. Some of them are highly risky while some others are almost risk

less.

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Investment avenues can be broadly categorized under the following heads:

Corporate Securities:

Joint stock companies in the private sector issue corporate securities. These include equity shares,

preference shares, and debentures. Equity shares have variable dividend and hence belong to the high risk-

high return category; preference shares and debentures have fixed returns with lower risk.

Equity Shares: Equity means equal, Equity shares means distributing the capital equally to the public at

large. These shares may be issued in face value or premiums. The returns may be high or low according to

the company performance. The return may be in terms of dividend or shares.

Preference Shares: Preference means, giving more interest to a particular shareholders who buyed the

preference shares. Comparing to the Equity shares preference shares are more profitable and secure.

Debentures/Bonds: Debentures are also a type of investment like Equity or Preference shares but the

Debentures is for Long Term Investment with fixed interest and time. Whereas Bond is also like Debenture

but compare to Debenture it is more secure where Debenture is not. It is also a long term investment with

fixed interest.

Derivatives: Derivatives is an emerging market on these days comparing to capital market. In Derivatives

we trade all types of commodities like Gold, Silver, Copper, Crude Oil, wheat, Sugar etc., Where as in

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capital market we trade only Equity shares. Derivatives is a worldwide market, it may be traded on

Currency, Indexes, Stocks etc.,

The classification of corporate securities that can be chosen as investment can be depicted as shown below:

OBJECTIVE OF THE STUDY

Establishing nationwide trading facility for all types of securities

Providing fair, efficient & transparent securities market using electronic trading system

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

To understand the performance of few Indian companies of the above two sectors.

To make comparative analysis of inter and intra sectors, basing on past Two months data (April

2011 - May 2011).

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Need & Significance of the Study

India is one of the fastest growing economies. Recently it touched the growth figure of 7%. It is also the destination

of investment for most of the foreign investors. From the past 3 to 6 years Indian stock markets are making some

remarkable performances. But most of the investors are interested to invest in index stocks i.e. large cap stocks only.

There is a wrong notion that small cap stocks are risky. Upon study on the performance of 50 small cap

stocks revealed that they can also yield good returns provided they have strong fundamentals. So our report on this

study gives an investor a deep insight in the importance of small cap stocks

RESEARCH METHODOLOGY:

The data that is used in this project is of secondary nature. The data is to be collected from secondary sources such as

various websites, journals, newspapers, books, etc., the analysis used in this project has been done using selective

technical tools. In Equity market, risk is analyzed and trading decisions are taken on basis of technical analysis.

Sample size of the industry sector: 2 sectors (Software & Banking)

Sample size of the companies in each sector: 3.

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METHOD OF CALCULATION:

The Data taken for the 2 sectors is 2 months Data (i.e.) 1st April 2011 – 31st FEB 2010. The data for

calculation purpose is taken on weekly basis starting from Monday. The formulae used for calculating

percentage change is

Formulae:

CURRENT WEEK – PREVIOUS WEEK /PREVIOUS WEEK * 100

SHARE VALUATION

Share valuation is the process of assigning a rupee value to a specific share. An ideal share valuation

technique would assign an accurate value to all shares.

Equity valuations could be classified into the following categories:

1. Earnings valuation.

2. Revenues valuation.

3. Cash Flow valuation.

4. Asset valuation.

5. Yield valuation.

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Sources of Financial Information

Market Data:

1. Stock Exchange daily official list.

2. Directory of the stock Exchange.

3. RBI’s weekly statistical supplements.

4. Newspapers.

5. The reports and Newsletter of investment brokerage and counseling firm.

Company Data:

1. Company’s Annual Reports and prospectuses.

2. Stock Exchange official directory.

3. Newspapers, Brokerage firms, and news columns.

Online sources:

1. CIMM (by CENTER FOR MONITORING THE INDIAN ECONOMY).

2. NSE NDIA

3. BSE INDIA

4. NETWORTH DIRECT

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LIMITATIONS OF THE STUDY

Lack of time in performing the project in detail study.

Only a part of the vast topic being covered due to lack of time. (Risk & Return analysis)

Lack of knowledge and experience in the field of the stock market.

Data taken from online sources from Respected websites.

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INFORMATION TECHNOLOGY OUTLOOK

IT Profile:

Information technology (IT) or information and communication technology (ICT) is a broad subject

which deals with technology and other aspects of managing and processing information, especially in large

organizations. Particularly, IT deals with the use of electronic computers and computer software to convert,

store, protect, process, transmit, and retrieve information. Over the past 20 years, its prevalence has

dramatically increased so that it is now a part of nearly every aspect of daily life.

INFOSYS TECHNOLOGIES

Infosys Technologies Ltd. (NASDAQ: INFY) was started in 1981 by seven people with US$ 250. Today,

we are a global leader in the "next generation" of IT and consulting with revenues of US$ 6.04 billion (LTM

March-11).

Infosys defines designs and delivers technology-enabled business solutions for Global 2000

companies. Infosys also provides a complete range of services by leveraging our domain and business

expertise and strategic alliances with leading technology providers.

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Our offerings span business and technology consulting, application services, systems

integration, product engineering, custom software development, maintenance, re-engineering, independent

testing and validation services, IT infrastructure services and business process outsourcing.

Infosys pioneered the Global Delivery Model (GDM), which emerged as a disruptive force in

the industry leading to the rise of offshore outsourcing. The GDM is based on the principle of taking work

to the location where the best talent is available, where it makes the best economic sense, with the least

amount of acceptable risk.

Infosys has a global footprint with 64 offices and 63 development centers in US, India,

China, Australia, Japan, Middle East, UK, Germany, France, Switzerland, Netherlands, Poland, Canada and

many other countries. Infosys and its subsidiaries have 130,820 employees as on March 31, 2011. Infosys

takes pride in building strategic long-term client relationships. 98% of our revenues come from existing

customers (FY 11)

KV Kamath appointed has a new chairman of Infosys, and Shibulal has a new CEO on Apr,

2011, The over $6 billion Infosys Technologies has also appointed current CEO S Gopalakrishnan as the

Executive co-Chairman and promoted COO S D Shibulal as CEO and MD.

Infosys reports Q4 and FY 2011 results

* Fiscal revenues at US$ 6.04 billion

* Up 25.8% YoY

* 18.6% YoY growth in earnings per American Depositary Share

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HISTORY:

Infosys was Incorporated on 2nd July 1981as Infosys Consultants Private Limited at

Mumbai. INFOSYS was promoted by software professionals, Mr. S. Gopalakrishnan, Mr. K. Dinesh,

Nandan M Nilekani, Mr. S.D. Shibulal, Mr. N.R. Narayana Murthy & Mr. N S Raghavan.

The company is engaged in software development in the form of services, turnkey projects

and products for the domestic and export market. The software development is targeted towards the

distribution, banking, telecommunication and manufacturing sectors worldwide. On 1992, The name

changed to Infosys Technologies Private Limited, and the registered office was moved to Bangalore. Later

the company was converted into a Public Limited Company under the name Infosys Technologies Ltd.

The company provides software maintenance, re-engineering and downsizing of software

applications in these market segments. It also markets internationally, two well-known packages, one for the

distribution industry (DMAP) and one for retail banking. On1993The Company turned up with ISO 9000

certification.

Infosys issued 19,76,100 No. of equity shares of Rs 10 each , subscribed and paid-up

(15,84,000 shares to directors, promoters; 2,68,100 shares to employees of the company and 1,24,000 shares

at a premium., of Rs 70 per to shareholders on right basis). The company has a joint venture in USA with

KSA (Kurt Salmon Associates). The company also has an offshore software development centre for General

Electric USA.

During the year marketing offices were opened in San Francisco, Cincinnati, New York and

Dallas. Infosys Technologies Ltd has signed up with the US-based. Copeland companies to set up a client

services workstation (CSW) for providing retirement planning products and services to non-profit

organisations (NPOs). The Company had tied up with German e-commerce firm Preis24.com to develop

solutions for business-to-business e-commerce.

Infosys Technologies Ltd has entered into an agreement with the US-based CyberShop

International Inc. 1999. Infosys Technologies Ltd has tied up with Franklin Templeton Investments (FTI)

for interactive information infrastructure. Microsoft Corporation and Infosys Technologies are joining hands

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to form an alliance, marking the coming together of a global software giant and a wannabe global

information technology major. Nortel Networks is joining hands with the company to set up a Wireless

centre of Excellence in Bangalore. Alpha Data, a leading information services company in the UAE, has

tied up with Infosys Technologies to market and support banking software products from Infosys in the

UAE. The Institute of Chartered Accountants of India awarded the Silver shield for the Best-Presented-

Accounts, amongst the entries received from the non-financial, private sector companies for the year 1995.

The Economic Times Awards for Corporate Excellence was won by Bangalore-based software giant Infosys

Technologies of the Year.

Infosys is the first ever India registered company to be listed in the Nasdaq stock market in

USA. After becoming the first Indian company to get a US listing, Infosys Technologies has emerged as one

of the most precious companies listed on NASDAQ in terms of market capitalisation in its category of

software consulting and services companies.

The Company it had tied-up with Japan's Toshiba Corporation to provide enterprise resource

planning (ERP) software solutions for Toshiba's business processes. Jammu and Kashmir Bank has tied up

with Infosys Technologies to offer internet banking and for its e-commerce initiatives. The Company Global

Development Centre is set up in London.

In 2001, Infosys Technologies has signed a MoU with the Andhra Pradesh Government for

establishing a software development campus at Hyderabad. Infosys Technologies is to set up its second

software centreat Pune in Hinjewadi. The first and biggest employees’ stock option plan (ESOP) by an

Indian software company has matured with the lock-in of Infosys Technologies’ 1994 ESOPs ending last

week giving eligible employees the option to convert it into hard currency.

In 2002, Receives Motilal Oswal Award for Wealth Creation for 1996-2001. Mr. Nandan

Nilekani becomes the new CEO of the company. Mr. Narayanamurthy assumes the role of Chairman &

Chief Mentor Signs Joint Venture Agreement with Punjab National Bank for the implementation of

Centralised Banking Solution. Infosys Tech bags prestigious Corporate University Xchange Excellence

Award for 2002

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In 2003, Fortune names Narayana Murthy, Nandan Nilekani as `Asia's Businessmen' of the

year 2003 making them the first Indians to win the award. Infosys gets ICAI award for the year '03

In 2008, Infosys & Nihon Unisys sign MoU for Strategic Business Deployment & Joint

Development for Sales & Solution Service. DSB Bank Partners with Finacle from Infosys for Core

Banking-led Transformation

Infosys Technologies has bagged a five-year outsourcing and support agreement from BP

where Infosys will manage and operate a large portion of business systems for BP under the terms of the

agreement. The company has announced successful implementation its first IT enabled end-to-end business

transformation program for Thermax. Infosys was ranked India's 'Most Admired Company' in The Wall

Street Journal Asia 200, a listing of Asia's leading companies in 2010. Infosys has achieved this distinction

for nine years in a row.

Infosys is the leader among IT service providers, according to global retailers in the 2010

RIS IT Services LeaderBoard survey. Infosys is India's most admired company: The Wall Street Journal.

Infosys among Top Ten Technology Companies: BCG Report. Infosys is among the top ten value creators

in technology and telecommunications, according to the 2010 Value Creators Report of The Boston

Consulting Group.

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TATA CONSULTANCY SERVICES

Tata Consultancy Services Limited (TCS) (BSE: 532540, NSE: TCS) is an Indian IT services, TCS

Founded in 1968 Founded by JRD Tata, TCS is business solutions and outsourcing company situated in

Mumbai, India. TCS is the largest provider of information technology in Asia and second largest provider of

business process outsourcing services in India. TCS has offices in 47 countries with more than 142 branches

across the globe. The company is listed on the National Stock Exchange and Bombay Stock Exchange of

India. TCS is ranked at 21 in the list of global IT services ranking of service providers. Tata Counsultancy

Service. TCS as a Revenue of US$ 8.2 billion (2011) and Employees of 200,300+ (April 2011). Tata Group

is a Parent company of TCS.

History:

It began as the "Tata Computer Centre", for the company Tata Group whose main business

was to provide computer services to other group companies. F C Kohli was the first general manager. J. R.

D. Tata was the first chairman, followed by pankaj roy.

One of TCS' first assignments was to provide punched card services to a sister concern, Tata

Steel (then TISCO). It later bagged the country's first software project, the Inter-Branch Reconciliation

System (IBRS) for the Central Bank of India. It also provided bureau services to Unit Trust of India, thus

becoming one of the first companies to offer BPO services.

The Company has launched its most integrated business accounting software `Personal

Accountant' in Guwahati. The Company has emerged as Asia's largest software and services company

launched its computer security consultancy practice.

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The Tata Consultancy Services has opened four new offices in the US, which would focus on

high quality technology services and innovative research and development. Visual Soft Technologies Ltd.

and Tata Consultancy Services have each bagged two awards from the Hyderabad Software Exporters

Association for the year 2000. Tata Consultancy Services has received the Global Partnership Award 2000

from AIESEC International, the Rotterdam-based NGO.

In 2001, The Company has signed an MoU with the Indian Institute of Technology, Madras

to set up a Centre of Excellence on computational engineering. Tata Consultancy Services has earmarked an

Rs 200-crore corpus for funding research and development initiatives. This year, the company’s focus areas

for R&D will be bio-informatics and Net security. Tata Consultancy Services and Infosys have emerged as

the leading Indian software exporters during 2000-01, clocking exports worth Rs 2,870.26 crore and Rs

1,852.94 crore, respectively.

Tata Consultancy Services, a global software solutions and consulting services enterprises,

has signed up with Ericsson worldwide to provide cost-effective solutions in telecom through its Global

Development Centre in Hyderabad. Andhra Pradesh Technology Services (APTS) join hands with TCS to

issue digital certificates. Tata Consultancy Services Ltd ties up with Formula One racing car champion

Ferrari to provide information technology and engineering services for the development of the team's racing

car for the 2005 season.

In 2005, TCS sets up new development centre in Kochi. Tata Consultancy Services (TCS)

becomes country's first IT Company to cross the billion mark as it closed fiscal 2005 with Rs 9,748.47 crore

in revenues. At Rs 1,976.90 crore in net profit, it is also the first software giant to cross 0 million in net

profit. TCS gets UK Trade and Investment Special Recognition Award

In 2006, Tata Consultancy Services (TCS) got an interior design deal from US airframe

manufacturer Boeing Company and will work closely with its customer to design the interiors of new

aircraft. On 2007 Tata Consultancy Services (TCS) has bagged .2 billion outsourcing contract from Nielsen

partners, the largest ever-outsourcing deal for any Indian IT player. Tata Consultancy Services Ltd has

announced that Standard & Poor's Ratings Services has assigned the Company a corporate credit rating of

'BBB' with a positive outlook.

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In 2008, Tata Consultancy Services Ltd (TCS) on April 05, 2008 has announced that it has

signed a new multi-year contract with Chrysler LLC to provide a comprehensive portfolio of IT services.

The scope of this contract integrates the contract TCS announced in February with Chrysler. Tata

Consultancy Services (TCS) has signed a five-year global contract with telecom giant Ericsson. TCS will

deliver application maintenance and development services for Ericsson's internal IT operations. TCS will be

one of the two strategic partners responsible for delivering application maintenance services to Ericsson. It

will also be a preferred supplier for application development services.

Tata Consultancy Services (TCS) has bagged a multi-year IT solutions contract from

Infineon Technologies AG (IFX), a semiconductor manufacturer. Under the agreement, TCS will operate

and maintain solutions for the Infineon's Supply Chain Management (SCM) landscape. The Infineon SCM

Planning operations will be operated out of Munich, Germany and Bangalore, India. TCS has won an

million outsourcing contract from UK's Child Maintenance and Enforcement Commission (CMEC). The

order is first in a series of almost -3 billion worth of contracts to be awarded by UK's state-owned

departments.

Tata Consultancy Services opened a new Global Delivery Center in Buenos Aires, Argentina

- the first company to officially inaugurate its facilities in the new Technology District of the City of Buenos

Aires. Tata Consultancy Services (TCS) has opened a new global delivery centre in Buenos Aires,

Argentina. Tata Consultancy Services Ltd (TCS), India's top software services exporter, today said that it

had signed a multi-year outsourcing contract with Norway's Telenor.

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WIPRO

Wipro IT Business, a division of Wipro Limited (NYSE:WIT), is amongst the largest global IT services,

BPO and Product Engineering companies. In addition to the IT business, Wipro also has leadership position

in niche market segments of consumer products and lighting solutions. The company has been listed since

1945 and started its technology business in 1980. Today, Wipro generates USD 6 billion (India GAAP

figure 2009-10) of annual revenues. Its equity shares are listed in India on the Mumbai Stock Exchange and

the National Stock Exchange; as well as on the New York Stock Exchange in the US.

Wipro makes an ideal partner for organizations looking at transformational IT solutions

because of its core capabilities, great human resources, commitment to quality and the global infrastructure

to deliver a wide range of technology and business consulting solutions and services, 24/7. Wipro enables

business results by being a ‘transformation catalyst’. It offers integrated portfolio of services to its clients in

the areas of Consulting, System Integration and Outsourcing for key-industry verticals.

With more than 100,000 associates from over 70 nationalities and 72 plus global delivery

centers in over 55 countries, Wipro’s services span financial services, retail, transportation, manufacturing,

healthcare services, energy and utilities, technology, telecom and media. Wipro’s unwavering focus has

been on business transformation with matchless innovation in service delivery and business models. More

than 800 active clients that include governments, educational institutes, utility services, and over 150 Global

Fortune 500 enterprises have benefited from this approach.

Wipro is at the forefront of technological and business co-innovation with 136 patents and

invention disclosures. With enhanced business performance at the core of its deliveries due to its strong

R&D and Innovation focus, Wipro gets an enviable 95 percent repeat business. We make our clients

business more efficient through a combination of process transformation, outsourcing, consulting and

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technology products and services. As the world’s first SEI CMM Level 5 Company, Wipro endeavors to

deliver reliability and effectiveness to its customers by maintaining high standards in service offerings

through robust internal processes and people management systems.

HISTORY:

Wipro was incorporated on 29th December, 1945 at Mumbai. The Company Manufacture vegetable ghee,

vanaspati, refined oils including salad oil, soap, waxs and tin containers for packing, crushing and oil

milling trading in oils and oilseeds and manufacture of fluid power products. The Products trade names

were Kisan, Sunflower and Camel.

In 1977 the name of the Company was changed from Western India Vegetable Products

Ltd., to Wipro Products Ltd., with effect from 7th June. It was again changed to Wipro Ltd., with effect

from 28th April, 1984. Diversifies into information technology. Later in 1982, The Name again changed

from Wipro Products Limited to Wipro Limited. `Ralak' a tulsi based family soap and `Wipro Jasmine' a

toilet soap was launched.

Also in 1989, The Company set up a joint venture company with General Electric of U.S.A.,

in the name of Wipro GE Medical Systems Pvt. Ltd., for the manufacture, sale and service of diagnostic

and imaging products. The Joint Venture has also an OEM sourcing arrangement with Elpro International

Ltd., for locally made x-ray products. In 1990, the joint venture became a subsidiary of the Company. In

1990 Santoor talcum powder, a brand extension and Wipro Baby Soft were launched in the market. The

Company established a relationship with Eaton Corporation, U.S.A. for marketing of hydraulic products in

India.

In 1991 "Tipping systems" were launched. The Company undertook to set up a high

technology plant and R&D Centre at Aurangabad with an investment of Rs 40 crores. The product range

was to include incandescent lamps, linear and circular fluorescent lamps, accessories and luminaries. Eaton

Hydraulic products were launched. The Company set up a new Unit Wipro Financial Services Ltd., for

serving customers with capital resources, expertise and ideas to help solve their financial needs. The

Company launched baby soft toiletries viz. soap, powder and oil based on natural ingredients of lanolin,

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olive, milk and almonds. Wipro is providing services of IT & IS consulting for E-business Transformation,

Electric Commerce, Web Enabling, ERP, Data Warehousing, Customer Relationship Management.

In 1996 Registered office of Wipro shifted from Mumbai to Bangalore. The company has

been providing design and development services to the technology sector. A MOU was signed with Nenoki

AG, Switzerland for technical know-how. Wipro Consumer Care Segment of the Company has been

manufacturing Santoor, a sandal and turmeric based safe soap for skin with natural ingredients. The Wipro

Consumer Care division relaunched milk and rose toilet soap in north India. Wipro Shikakai was extended

to Wipro herbal, India's first anti dandruff soap. Wipro's Camel brand is a leader catering to the commercial

biscuit manufacturers and bakeries.

Wipro SuperGenius personal computers (PCs) have become the only Indian PC range to

obtain the US-based National Software Testing Laboratory's (NSTL) Certification for Year 2000 (Y2K)

compliance. The operating systems of Wipro SuperGenius PCs are also Y2K compliant. Wipro Ltd, the

Bangalore-based InfoTech major, will be the first company in Corporate India to split its part value shares

of Rs 10 each. Wipro's share capital is Rs 45.83 crore, comprising 45.83m shares of the face value of Rs 10

each. The sub-division of shares will be subject to Sebi guidelines, said a notice issued by the company to

the BSE.

Wipro is also proposing to set up a new employee stock option plan for its permanent

employees. Yet another resolution the company takes up at its AGM is to split the existing Rs 10 equity

shares of Wipro into five each of Rs 2 face value. Wipro Limited has joined hands with a global telecom

major KPN (Royal Dutch telecom) to form a joint venture company to provide internet services in India.

Wipro would control the majority stake of 55 per cent while the remaining will be with KPN.

Wipro has become the second largest company in terms of market capitalisation on the

Bombay Stock Exchange. The Company has been awarded first prize, at national level, for outstanding

export performance during 1999-2000 from the Software Technology Parks of India. Investment

Information and Credit Rating Agency Ltd has reaffirmed the `A1+' rating assigned to the Rs. 100-crore

commercial paper programme of Wipro Ltd. Recently in 2010, Wipro Technologies announced the

inauguration of its new development centre in Melbourne.

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Banking Profile

Banking in India originated in the last decades of the 18th century. The oldest bank in

existence in India is the State Bank of India, a government-owned bank that traces its origins back to June

1806 and that is the largest commercial bank in the country. Central banking is the responsibility of all the

Banks. Reserve Bank of India, which in 1935 formally took over these responsibilities from the then

Imperial Bank of India, relegating it to commercial banking functions. After India's independence in 1947,

the Reserve Bank was nationalized and given broader powers. In 1969 the government nationalized the 14

largest commercial banks; the government nationalized the six next largest in 1980.

Currently, India has 96 scheduled commercial banks (SCBs) - 27 public sector banks (that is

with the Government of India holding a stake), 31 private banks (these do not have government stake; they

may be publicly listed and traded on stock exchanges) and 38 foreign banks. They have a combined network

of over 53,000 branches and 17,000 ATMs.

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AXIS

Axis Bank was the first of the new private banks to have begun operations in 1994, after the Government of

India allowed new private banks to be established. The Bank was promoted jointly by the Administrator of

the specified undertaking of the Unit Trust of India (UTI - I), Life Insurance Corporation of India (LIC) and

General Insurance Corporation of India (GIC) and other four PSU insurance companies, i.e. National

Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd.

and United India Insurance Company Ltd.

The Bank as on 31st March, 2011 is capitalized to the extent of Rs. 410.54 crores with the

public holding (other than promoters and GDRs) at 53.60%. The Bank's Registered Office is at Ahmedabad

and its Central Office is located at Mumbai. The Bank has a very wide network of more than 1281 branches

(including 169 Service Branches/CPCs as on 31st March, 2011). The Bank has a network of over 6270

ATMs (as on 31st March, 2011) providing 24 hrs a day banking convenience to its customers. This is one of

the largest ATM networks in the country. The Bank has strengths in both retail and corporate banking and is

committed to adopting the best industry practices internationally in order to achieve excellence.

History:

The Bank was incorporated on December, 1993 and Certificate of business on 14th

December. The Bank transacts banking business of all description. UTI Bank Ltd. was promoted by Unit

Trust of India, Life Insurance Corporation of India, General Insurance Corporation of India and its four

subsidiaries. The bank was the first private sector bank to get a license under the new guidelines issued by

the RBI.

In 1997, The Bank obtained license to act as Depository Participant with NSDL and applied

for registration with SEBI to act as `Trustee to Debenture Holders'. Rupees 100 crores was contributed by

UTI, the rest from LIC Rs 7.5 crores, GIC and its four subsidiaries Rs 1.5 crores each.In1998, The Bank has

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28 branches in urban and semi urban areas as on 31st July. All the branches are fully computerised and

networked through VSAT. ATM services are available in 27 branches.

The Bank came out with a public issue of 1,50,00,000 No. of equity shares of Rs 10 each at a

premium of Rs 11 per share aggregating to Rs 31.50 crores and Offer for sale of 2,00,00,000 No. of equity

shares for cash at a price of Rs 21 per share. Out of the public issue 2,20,000 shares were reserved for

allotment on preferencial basis to employees of UTI Bank. Balance of 3,47,80,000 shares were offered to

the public.

The company offers ATM cards, using which account-holders can withdraw money from any

of the bank's ATMs across the country which are inter-connected by VSAT. UTI Bank has launched a new

retail product with operational flexibility for its customers. In1999 UTI Bank and Citibank have launched an

international co-branded credit card. UTI Bank and Citibank have come together to launch an international

co-branded credit card under the MasterCard umbrella.

In 2007, The name has been changed from UTI Bank Ltd to Axis Bank Ltd. AXIS Bank Ltd

has informed that Fitch Ratings on December 14, 2007, has upgraded the Bank's National Long-term rating

to 'AAA(ind)' from 'AA+(ind)'. Axis Bank launches Platinum Credit Card, India's first EMV chip based

card. Axis Bank, on Wednesday entered into a strategic alliance with Motilal Oswal, the financial services

firm, in order to facilitate the online trading for the bank's customers.

29

HDFC Bank

HDFC Bank Limited (BSE: 500180, NSE: HDFCBANK, NYSE: HDB, NASDAQ: HDB) is a major

Indian financial services company based in India, incorporated in August 1994, after the Reserve Bank of

India allowed establishing private sector banks. The Bank was promoted by the Housing Development

Finance Corporation, a premier housing finance company (set up in 1977) of India. HDFC Bank has 1,725

branches and over 5,000 ATMs, in 780 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. For the fiscal year

2010-11, the bank has reported net profit of Rs.3,926.30 crore (US$871.64 million), up 33.1% from the

previous fiscal. Total annual earnings of the bank increased by 20.37% reaching at Rs.24,263.4 crore

(US$5.39 billion) in 2010-11 And Employees working under HDFC are 51,888 (2010).

The bank was in the name of 'HDFC Bank Limited', with its registered office in Mumbai,

India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. It is one of

the Big Four banks of India, along with State Bank of India, ICICI Bank and Punjab National Bank—its

main competitors.

HISTORY

Housing Development and Financial Corporation is new private sector Bank promoted by Housing

Development Corporation Ltd. (HDFC). The Bank was incorporated on August, 1994.The bank is the first

of its kind to receive an in-principle approval from the RBI for establishment of a bank in the private sector.

Certificate of Commencement of Business was received on October 1994 from RBI.

The Bank transacts both traditional commercial banking as well as investment banking.

HDFC, the promoter of the bank has entered into an agreement with National West minister Bank Pc. and

its subsidiaries (Natwest Group) for subscribing 20% of the banks issued capital and providing technical

assistance in relation to the banks proposed banking business.

30

70 No. of equity shares issued to subscribers to the Memorandum & Articles of Association

on August 1994. On the same date 500,00,000 equity shares were allotted to HDFC promoters. 509,20,000

shares were allotted to HDFC Employees Welfare Trust and HDFC Bank Employees Welfare Trust on

December, 1994.

HDFC Bank, one of the nine new-generation private sector banks, has planned to set up an

all-India on-line automated teller machine (ATM) network. HDFC Bank has become the first bank in India

to link up its automated teller machine (ATM) network with all the three major payment systems world-

wide.

HDFC Bank will be the first bank in the Asia-Pacific region to connect the American

Express (Amex) payment system. The HDFC Bank is expanding its ATM network to connect to American

Express Interchange based in Phoenix, Arizona, USA. With this connectivity, HDFC Bank has become the

first bank in the Asia-pacific region to connect to the Amex Interchange. HDFC Bank was the first to sign

up with AMEX in December of 1998. HDFC Bank, has tied up with BPL Ltd to offer Internet-enabled

supply-chain management and business-to-consumer (B2C) e-commerce services to corporates.

In 2000, HDFC Bank also signed a memorandum of understanding with Singapore Telecom's

e-commerce arm Sesami.Com Pvt Ltd. The Bank latter also entered into a partnership agreement with

National Computer Systems, the e-commerce unit of Singtel. A new company called SESAMi.com (India)

has been formed by a strategic alliance between HDFC Bank and Singapore Telecom's e-commerce

company SESAMi.com, to offer e-commerce solutions for the Indian market.

In2001, The Bank has launched the international Maestro debit card in association with

Master Card. HDFC Bank will launch its credit card in June through link-ups with MasterCard and Visa.

HDFC Bank entered into a strategic tie-up with Tally Solutions Pvt. Ltd. to offer online real time accounting

services to small and medium enterprises.

In 2002, HDFC Bank unveils Silver card in Hyderabad. HDFC Bank launched new products

to its wealth management programme to increase its customer base. The bank introduced a non-interactive

product named Financial Planner, which would be available for all its customers for an annual fee starting

from Rs 10,000. The bank is offering fee based advisory programme to the mass affluent segment, which

was earlier offered to high net worth customers. The wealth management programme would cater to

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individual needs taking into account various factors such as customer's age, financial goals and risk profile,

which includes equity, MFs and debt instruments such as RBI Relief Bonds.

In 2008, HDFC Bank Ties Up With Postal Department, Extends Rural Reach. HDFC Bank

Wins ‘Nasscom IT User Award The Year'. HDFC Bank Opens Its First Overseas Branch in Bahrain and

HDFC Bank Launches India’s First Rural Banking BPO at Tirupathi. HDFC Bank Launches India’s First

Online Market Linkage Programme for Self Help Groups.

32

ICICI

ICICI Bank Limited (NSE: ICICIBANK, BSE: 532174, NYSE: IBN, NASDAQ: IBN) is a major banking

and financial services company based in Mumbai. It is the second largest bank in India and the largest

private sector bank in India by market capitalization. The bank also has a network of 2,529 branches (as on

31 March 2010) and about 6,102 ATMs in India and presence in 19 countries, as well as some 24 million

customers (at the end of July 2007). ICICI Bank offers a wide range of banking products and financial

services to corporate and retail customers through a variety of delivery channels and specialization

subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and

asset management. ICICI Bank is also the largest issuer of credit cards in India. ICICI Bank's shares are

listed on the stock exchanges at BSE, NSE, Kolkata and Vadodara (formerly Baroda); its ADRs trade on the

New York Stock Exchange (NYSE).

ICICI Bank is India's second-largest bank with total assets of Rs. 4,062.34 billion (US$ 91

billion) at March 31, 2011 and profit after tax Rs. 51.51 billion (US$ 1,155 million) for the year ended

March 31, 2011. The Bank has a network of 2,532 branches and 6,301 ATMs in India, and has a presence in

19 countries, including India.

The Bank currently 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. Our UK subsidiary has established branches in Belgium and Germany.

33

HISTORY

The ICICI bank was incorporated at 1994, It does banking business of all kinds. It was

founded as an institution to provide quality banking services using state-of-the-art technology. The Bank has

established a well diversified branch network with 24 branches in 15 centres covering 12 states. The bank

set up a fully computerised environment with the State-of-the-art technology at all offices continuously

upgrading its strong systems and procedures with special emphasis on risk management. Seven branches of

the bank with substantial foreign exchange business were linked to the society for worldwide Interbank

Telecommunication (SWIFT) network which enables them to transmit Letter of Credit and fund transfer

messages promptly worldwide.

In1997, The bank introduced electronic funds transfer facility. The merger of SCICI with

ICICI effective from April 1, the bank has become a wholly-owned subsidiary of ICICI. ICICI Banking

Corporation, a fully-owned subsidiary of Industrial Credit & Investment Corp of India Ltd, has finalised an

offer for sale of 4 crore equity shares of Rs.10 each at a premium of Rs.30 per share, according to merchant

banking sources.

On 1998, ICICI Banking Corporation Ltd, the first bank in the country to go in for Internet

banking, is now all set to provide its account-holders with the facility of transferring funds across their

accounts on the Net. 1999 - ICICI Bank has signed an agreement to use the NCR switchmark technology for

online-networking all its ATMs, the officials said they network would come into place in September.

In 2000, ICICI Bank became the first Indian bank to list on the New York Stock Exchange

with its 5-million American depository shares issue generating a demand book 13 times its size at .2 billion.

SkyCell Communications Ltd, one of the two cellular service providers in Chennai, has launched `Sky

Banking', for which the company has tied up with ICICI Bank and HDFC Bank. The ICICI has announced

the launch of mobile banking services for its customers, using the wireless application protocol (WAP)

technology.

34

In 2009, ICICI Bank appointed N S Kannan as the Executive Director and Chief Financial

Officer on the board with effect from May 1 following the vacancy caused by the elevation of Chanda

Kochhar as Managing Director and CEO of the bank, with effect from May 1.

ICICI Bank with Singapore Airlines launched “ICICI Bank Singapore Airlines Visa Platinum

Credit Card”, the Card has exclusive privileges especially designed for the members. ICICI Bank Limited

acting through its Hong Kong Branch (ICICI Bank) signed a loan agreement with the Export-Import Bank

of China (China Exim) for USD 98 million under the Two- step Buyer Credit (Export Credit) arrangement.

ICICI Bank is the first Indian Bank to have entered into this arrangement with China Exim.

In 2010, ICICI Bank has increased deposit rates on select maturities. The bank has raised the

interest rate on deposits maturing in 270 days to less than one year by 25 basis points to 5.75 per cent for

deposits of Rs 15 lakh to Rs 1 crore. ICICI Bank increased its deposit rates in select tenures by up to 0.50%

with instant effect, signaling hardening of interest rates in the industry.

35

Company Profile:

A world of intelligent investing

Networth has been successfully providing premium financial services and information for more than a

decade. Our aim has consistently been to empower investors to take charge of their financial future & help

them grow their Networth.

 

Networth has always endeavored to make a difference in the financial services space. It constantly

focuses on scaling and upgrading the technology infrastructure so as to provide the best services to the

investors. We have a presence of over 300 centre’s across India.

We are...

Managed by a talented team of over 2475 professionals.

Serving nearly 100,000 clients across the country.

ISO 9001:2000 Certified Software Division.

Winner of CNBC-TV18’s Financial Advisor Awards 2008 for Best Regional Level Financial

Advisor.

Proclaimed amongst the most read research analyst (Team Networth) by Thomson Reuters

consistently over a period of time.

A Charter member of Financial Planning Standards Board of India [FPSB].

Alliance partners with PNB for online trading.

36

Corporate Agents for MetLife India Insurance Co. Ltd.

OUR GROUP COMPANIES

Networth Stock Broking Ltd. [NSBL]:

NSBL is a member of the National Stock Exchange of India Ltd (NSE) and the Bombay Stock

Exchange Ltd (BSE) in the Capital Market and Derivatives (Futures & Options) segment. NSBL has also

acquired membership of the currency derivatives segment with NSE, BSE & MCX-SX. It is Depository

participants with Central Depository Services India (CDSL) and National Securities Depository (India)

Limited (NSDL). With a client base of over 1L loyal customers, NSBL is spread across the country though

its over 300+ branches. NSBL is listed on the BSE since 1994.

 

Networth Wealth Solutions Ltd. [NWSL]:

NWSL is into the business of delivery of Financial Planning & Advice. It’s vision is to ‘Advice &

Execute money related solutions to/for our customers in the most Convenient & Consolidated manner, while

making sure that their experience with us is always pleasant & memorable resulting in positive advocacy’.

The product & Services include Financial Planning, Life Insurance, On-line Trading Account, Mutual

Funds, Debentures/Bonds, General Insurance, Loans and Depository Services.

Networth Commodities & Investments Limited [NCIL]:

NCIL is the commodities arm of NSBL. It is a member at the Multi Commodity Exchange of India (MCX),

National Commodity & Derivatives Exchange (NCDEX) and ICEX & is backed by solid research &

analytics in Commodities.

37

Networth Soft Tech Ltd. [NSL]:

NSL is an ISO 9001:2000 Certified Company. It is into Application Development & maintenance. Building

& Implementation of packaged software across various functions within the Financial Services Industry is at

its core. It also provides data center services which include hosting of websites, applications & related

services. It combines a unique delivery model infused by a distinct culture of customer satisfaction.

Ravisha Financial Services Pvt. Ltd. [RFSL]:

RFSL is a RBI registered NBFC engaged in financing, primarily it provides loan against securities.

Management

Name Designation

R Sankaran Chairman

Girish Dev Executive Director

Ms. Trupti Lalpuria Company Secretary & Compliance Officer

38

Ownership Pattern

Networth (Registered & Head Office) 2nd Floor, D.C.Silk Mills Compound,

Kondivita Road, Opp. J. B. Nagar Market

Andheri (East)

Mumbai - 400059

Maharashtra.

Phone Nos. : 022 – 30641600.

Hyderabad ( Champapet )

Networth, F.No:- 405, Jitta Anji Reddy

Complex,

Above More Super Market, Champapet,

39

Hyderabad - 500059, India.

Tel: +91-40-2407 6688 / 3258 6688.

INDUSTRY PROFILE

NATIONAL STOCK EXCHANGE

The National Stock Exchange of India Limited has genesis in the report of the High Powered

Study Group on Establishment of New Stock Exchanges. It recommended promotion of a National Stock

Exchange by financial institutions (FIs) to provide access to investors from all across the country on an

equal footing. Based on the recommendations, NSE was promoted by leading Financial Institutions at the

behest of the Government of India and was incorporated in November 1992 as a tax-paying company unlike

other stock exchanges in the country.

On its recognition as a stock exchange under the Securities Contracts (Regulation) Act, 1956

in April 1993, NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994.

The Capital Market (Equities) segment commenced operations in November 1994 and operations in

Derivatives segment commenced in June 2000. The following years witnessed rapid development of Indian

capital market with introduction of internet trading, Exchange traded funds (ETF), stock derivatives and the

first volatility index - IndiaVIX in April 2008, by NSE.

August 2008 saw introduction of Currency derivatives in India with the launch of Currency

40

Futures in USD INR by NSE. Interest Rate Futures was introduced for the first time in India by NSE on 31st

August 2009, exactly after one year of the launch of Currency Futures.

With this, now both the retail and institutional investors can participate in equities, equity derivatives,

currency and interest rate derivatives, giving them wide range of products to take care of their evolving

needs.

NSE Milestones:

November 1992 Incorporation

April 1993 Recognition as a stock exchange

May 1993 Formulation of business plan

June 1994 Wholesale Debt Market segment goes live

November 1994 Capital Market (Equities) segment goes live

March 1995 Establishment of Investor Grievance Cell

April 1995 Establishment of NSCCL, the first Clearing Corporation

June 1995

Introduction of centralised insurance cover for all trading

Members

July 1995 Establishment of Investor Protection Fund

41

October 1995 Became largest stock exchange in the country

April 1996 Commencement of clearing and settlement by NSCCL

April 1996 Launch of S&P CNX Nifty

June 1996 Establishment of Settlement Guarantee Fund

November 1996

Setting up of National Securities Depository Limited, first depository in India, co-promoted by NSE

November 1996 Best IT Usage award by Computer Society of India

December 1996

Commencement of trading/settlement in dematerialised securities

December 1996 Dataquest award for Top IT User

December 1996 Launch of CNX Nifty Junior

February 1997 Regional clearing facility goes live

November 1997 Best IT Usage award by Computer Society of India

May 1998

Promotion of joint venture, India Index Services & Products Limited (IISL)

May 1998 Launch of NSE's Web-site: www.nse.co.in

42

July 1998 Launch of NSE's Certification Programme in Financial Market

August 1998 CYBER CORPORATE OF THE YEAR 1998 award

February 1999 Launch of Automated Lending and Borrowing Mechanism

April 1999 CHIP Web Award by CHIP magazine

October 1999 Setting up of NSE.IT

January 2000 Launch of NSE Research Initiative

February 2000 Commencement of Internet Trading

June 2000 Commencement of Derivatives Trading (Index Futures)

September 2000 Launch of 'Zero Coupon Yield Curve'

November 2000

Launch of Broker Plaza by Dotex International, a joint venture between NSE.IT Ltd. and i-flex Solutions Ltd.

December 2000 Commencement of WAP trading

June 2001 Commencement of trading in Index Options

July 2001 Commencement of trading in Options on Individual Securities

43

November 2001 Commencement of trading in Futures on Individual Securities

December 2001 Launch of NSE VaR for Government Securities

January 2002 Launch of Exchange Traded Funds (ETFs)

May 2002

NSE wins the Wharton-Infosys Business Transformation

Award in the Organization-wide Transformation category

October 2002 Launch of NSE Government Securities Index

January 2003 Commencement of trading in Retail Debt Market

June 2003 Launch of Interest Rate Futures

August 2003 Launch of Futures & options in CNXIT Index

June 2004 Launch of  STP Interoperability

August 2004 Launch of  NSE’s electronic interface for listed companies

March 2005 ‘India Innovation Award’ by EMPI Business School, New Delhi

June 2005 Launch of Futures & options in BANK Nifty Index

December 2006 'Derivative Exchange of the Year', by Asia Risk magazine

44

January 2007 Launch of  NSE – CNBC TV 18 media centre

March 2007 NSE, CRISIL announce launch of IndiaBondWatch.com

June 2007 NSE launches derivatives on Nifty Junior & CNX 100

October 2007 NSE launches derivatives on Nifty Midcap 50

January 2008

Introduction of Mini Nifty derivative contracts on 1st January 2008

March 2008

Introduction of long term option contracts on S&P CNX Nifty Index

April 2008 Launch of India VIX

April 2008 Launch of Securities Lending & Borrowing Scheme

August 2008 Launch of Currency Derivatives

August 2009 Launch of Interest Rate Futures

November 2009 Launch of Mutual Fund Service System

December 2009 Commencement of settlement of corporate bonds

February 2010 Launch of Currency Futures on additional currency pairs

45

October 2010 Launch of 15-minute special pre-open trading session, a mechanism under which investors can bid for stocks before the market opens.

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 specialized 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

46

CNX Nifty Junior

CNX 100

S&P CNX 500

CNX Midcap

S&P CNX Defty

CNX Midcap 200

Equity Trading System in NSE

Trading System

NSE operates on the 'National Exchange for Automated Trading' (NEAT) system, a fully automated screen

based trading system, which adopts the principle of an order driven market. NSE consciously opted in

favour of an order driven system as opposed to a quote driven system. This has helped reduce jobbing

spreads not only on NSE but in other exchanges as well, thus reducing transaction costs.

Trading System - Market Types

The NEAT system has four types of market. They are:

Normal Market

All orders which are of regular lot size or multiples thereof are traded in the Normal Market. For shares that

are traded in the compulsory dematerialised mode the market lot of these shares is one. Normal market

consists of various book types wherein orders are segregated as Regular lot orders, Special Term orders,

Negotiated Trade Orders and Stop Loss orders depending on their order attributes.

Odd Lot Market

All orders whose order size is less than the regular lot size are traded in the odd-lot market. An order is

called an odd lot order if the order size is less than regular lot size. These orders do not have any special

terms attributes attached to them. In an odd-lot market, both the price and quantity of both the orders (buy

and sell) should exactly match for the trade to take place. Currently the odd lot market facility is used for the

47

Limited Physical Market as per the SEBI directives.

Auction Market

In the Auction Market, auctions are initiated by the Exchange on behalf of trading members for settlement

related reasons. There are 3 participants in this market.

Initiator - the party who initiates the auction process is called an initiator

Competitor - the party who enters orders on the same side as of the initiator

Solicitor - the party who enters orders on the opposite side as of the init

Spot Market

Spot orders are similar to the normal market orders except that spot orders have different settlement periods

vis-à-vis normal market. These orders do not have any special terms attributes attached to them. Currently

the Spot Market is not in use.

Trading System - Order Matching Rules

The best buy order is matched with the best sell order. An order may match partially with another order

resulting in multiple trades. For order matching, the best buy order is the one with the highest price and the

best sell order is the one with the lowest price. This is because the system views all buy orders available

from the point of view of a seller and all sell orders from the point of view of the buyers in the market. So,

of all buy orders available in the market at any point of time, a seller would obviously like to sell at the

highest possible buy price that is offered. Hence, the best buy order is the order with the highest price and

the best sell order is the order with the lowest price.

Members can proactively enter orders in the system, which will be displayed in the system till the full

quantity is matched by one or more of counter-orders and result into trade(s) or is cancelled by the member.

Alternatively, members may be reactive and put in orders that match with existing orders in the system.

Orders lying unmatched in the system are 'passive' orders and orders that come in to match the existing

orders are called 'active' orders. Orders are always matched at the passive order price. This ensures that the

earlier orders get priority over the orders that come in later.

48

Market Timings

Trading on the equities segment takes place on all days of the week (except Saturdays and Sundays and

holidays declared by the Exchange in advance). The market timings of the equities segment are:

Normal Market Open : 09:00 hours

Normal Market Close : 15:30 hours

The Closing Session is held between 15.50 hours and 16.00 hours

Limited Physical Market Open : 09:00 hours

Limited Physical Market Close : 15:30 hours

BOMBAY STOCK EXCHANGE

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).

49

Bombay Stock Exchange is the oldest stock exchange in Asia with a rich heritage of over 133 years

of existence. What is now popularly known as BSE was established as "The Native Share & Stock Brokers'

Association" in 1875.

BSE is the first stock exchange in the country which obtained permanent recognition (in 1956) from

the Government of India under the Securities Contracts (Regulation) Act (SCRA) 1956. BSE's pivotal and

pre-eminent role in the development of the Indian capital market is widely recognised. It migrated from the

open out-cry system to an online screen-based order driven trading system in 1995. Earlier an Association

Of Persons (AOP), BSE is now a corporatised and demutualised entity incorporated under the provisions of

the Companies Act, 1956, pursuant to the BSE (Corporatisation and Demutualisation) Scheme, 2005

notified by the Securities and Exchange Board of India (SEBI). With demutualisation, BSE has two of

world's prominent exchanges, Deutsche Börse and Singapore Exchange, as its strategic partners.

Over the past 133 years, BSE has facilitated the growth of the Indian corporate sector by providing it

with cost and time efficient access to resources. There is perhaps no major corporate in India which has not

sourced BSE's services in raising resources from the capital market.

Today, BSE is the world's number 1 exchange in terms of the number of listed companies and the world's

5th in handling of transactions through its electronic trading system. The companies listed on BSE

command a total market capitalization of USD Trillion 1.06 as of July, 2009. BSE reaches to over 400

cities and town nation-wide and has around 4,937 listed companies, with over 7745 scrips being traded as

on 31st July 09.

BSESENSEX

The BSE Index, SENSEX, is India's first and most popular stock market benchmark index. Sensex is

tracked worldwide. It constitutes 30 stocks representing 12 major sectors. The SENSEX is constructed on a

'free-float' methodology, and is sensitive to market movements and market realities. Apart from the

SENSEX, BSE offers 23 indices, including 13 sectoral indices. It has entered into an index cooperation

50

agreement with Deutsche Börse and Singapore Stock Exchange. These agreements have made SENSEX and

other BSE indices available to investors across the globe. Moreover, Barclays Global Investors (BGI), at

Hong Kong, the global leader in ETFs through its iShares® brand, has created the exchange traded fund

(ETF) called 'iShares® BSE SENSEX India Tracker' which tracks the SENSEX. The ETF enables investors

in Hong Kong to take an exposure to the Indian equity market.

The exchange traded funds (ETF) on SENSEX, called "SPIcE" and Kotak SENSEX ETF are listed

on BSE. They bring to the investors a trading tool that can be easily used for the purposes of investment,

trading, hedging and arbitrage. These ETFs allow small investors to take a long-term view of the market.

BSE provides an efficient and transparent market for trading in equity, debt instruments and

derivatives. It has always been at par with the international standards. The systems and processes are

designed to safeguard market integrity and enhance transparency in operations. 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).

BSE continues to innovate. In 2006, it became the first national level stock exchange to launch its

website in Gujarati and Hindi and now Marathi to reach out to a larger number of investors. It has

successfully launched a reporting platform for corporate bonds in India christened the ICDM or Indian

Corporate Debt Market and a unique ticker-cum-screen aptly named 'BSE Broadcast' which enables

information dissemination to the common man on the street.

In 2006, BSE launched the Directors Database and ICERS (Indian Corporate Electronic Reporting System)

to facilitate information flow and increase transparency in the Indian capital market. While the Directors

Database provides a single-point access to information on the boards of directors of listed companies, the

ICERS facilitates the corporates in sharing with BSE their corporate announcements.

BSE also has a wide range of services to empower investors and facilitate smooth transactions:

Investor Services: The Department of Investor Services redresses grievances of investors. BSE was the first

exchange in the country to provide an amount of Rs.1 million towards the investor protection fund; it is an

amount higher than that of any exchange in the country. BSE launched a nationwide investor awareness 51

programme- 'Safe Investing in the Stock Market' under which 264 programmes were held in more than 200

cities.

The BSE On-line Trading (BOLT): BSE On-line Trading (BOLT) facilitates on-line screen based trading in

securities. BOLT is currently operating in 25,000 Trader Workstations located across over 359 cities in

India.

Equity shares

Shares or stock options in a company entitles the buyer the ownership rights in a company. As a unit of

ownership the stock/share holder gets a voting right in the company. The total of these shares is what

contributes to the capital of the company.

Equity shares is the equally divided capital of a company. Total capital contribution for a company

comprises of investments through equity share holdings by small and big investors. The investors who have

a stake in a company are referred to as shareholders. The equity shares are therefore documents issued by a

company and floated in the open market for purchase by shareholders which entitles them to be one of the

owners of the company.

The profits of equity shareholders depend on the profit making capability of the company that they have

invested in. In a situation where the company has made huge profits the benefits are passed over to the

equity share holders by way of dividends. The equity shareholders also enjoy voting rights in the company

By investing in shares, investors basically buy the ownership right to the company. When the company

makes profits, shareholders receive their share of the profits in the form of dividends. In addition, when

company performs well and the future expectation from the company is very high, the price of the

company’s shares goes up in the market. This allows shareholders to sell shares at a profit, leading to capital

gains.

Investors can invest in shares either through primary market offerings or in the secondary market.52

The primary market has shown abnormal returns to investors who subscribed for the public issue and were

allotted shares.

Stock Exchange:

In a stock exchange a person who wishes to sell his security is called a seller, and a person who is willing to

buy the particular stock is called as the buyer. The rate of stock depends on the simple law of demand and

supply. If the demand of shares of company x is greater than its supply then its price of its security

increases.

In Online Exchange the trading is done on a computer network. The sellers and buyers log on to the network

and propose their bids. The system is designed in such ways that at any given instance, the buyers/sellers are

bidding at the best prices.

The transaction cycle for purchasing and selling shares online is depicted below:

53

Client

Member/ Broking firm.

Stock Exchange

(BSE / NSE)

Member/

Broking firm.Client

Transaction Cycle

54

ANALYSIS

INFOSYSTCH

Day wise April and May Month Data

Data for INFOSYSTCH - EQ from 01-04-2011 to 31-05-2011

Date Prev Close Open Price

High Price

Low Price

Last Price

Close Price Average

01-Apr-11 3241.3 3235.1 3256.25 3208 3219.1 3218.15 3225.2404-Apr-11 3218.15 3225 3296 3221 3274 3283.15 3274.2505-Apr-11 3283.15 3276.95 3293 3231.1 3280 3283.25 3260.5306-Apr-11 3283.25 3279 3299 3252.05 3275.4 3275.15 3278.0207-Apr-11 3275.15 3261.9 3261.9 3237.7 3244.05 3245.9 3249.1708-Apr-11 3245.9 3242 3264.65 3207.45 3226 3227.3 3228.9211-Apr-11 3227.3 3195.3 3261.8 3181 3236.85 3241.6 3239.213-Apr-11 3241.6 3211 3317.1 3196 3305.05 3306.2 3272.0115-Apr-11 3306.2 3296.15 3298.6 2977.5 2980.7 2989.5 3058.218-Apr-11 2989.5 2919 2967 2880 2903 2906.1 2927.6319-Apr-11 2906.1 2906 2927 2881 2884.95 2887.35 2903.2320-Apr-11 2887.35 2919 2927.9 2891 2903 2907.3 2909.521-Apr-11 2907.3 2918.7 2940.5 2901.1 2903 2910 2919.7125-Apr-11 2910 2915 2963.95 2907.4 2940 2941.3 2945.0126-Apr-11 2941.3 2935 2954.95 2920 2937.6 2942.35 2938.04

55

27-Apr-11 2942.35 2945 2964.65 2942.5 2952.25 2953.15 2954.3828-Apr-11 2953.15 2949 2958 2921 2922.25 2929.15 2935.129-Apr-11 2929.15 2910 2929 2887.95 2900 2906.25 2908.9

02-May-11 2906.25 2919.05 2944 2910 2923 2922.55 2924.6103-May-11 2922.55 2920 2957.15 2899.95 2900 2911.05 2938.4904-May-11 2911.05 2901 2905 2842.75 2866.25 2869.75 2868.2705-May-11 2869.75 2867.3 2878.9 2837 2840 2848.5 2858.3206-May-11 2848.5 2857.9 2910 2848 2882.45 2893 2875.509-May-11 2893 2910 2917 2867.5 2910 2908.55 2894.9810-May-11 2908.55 2907.7 2924.9 2872 2875.65 2880.05 2898.2211-May-11 2880.05 2882 2924 2879.95 2905 2906.05 2908.5412-May-11 2906.05 2897.9 2909 2872 2884 2881.25 2889.5913-May-11 2881.25 2883.2 2912 2871.25 2885 2878.35 2891.3416-May-11 2878.35 2876 2876 2842.35 2850 2850.4 2853.9417-May-11 2850.4 2848.4 2877.3 2823.95 2847 2844.15 2853.818-May-11 2844.15 2850 2882.35 2803 2845.1 2842.5 2850.5919-May-11 2842.5 2859.7 2859.7 2835.6 2846.05 2846.45 2848.5620-May-11 2846.45 2845 2863.7 2832.15 2846 2849.85 2845.7423-May-11 2849.85 2847.85 2852.8 2827.85 2840 2837.05 2837.5724-May-11 2837.05 2833 2863.85 2833 2849 2844.5 2849.725-May-11 2844.5 2827.7 2827.7 2756.6 2794 2788.65 2785.9726-May-11 2788.65 2794 2797.75 2758 2779.6 2776.55 2775.5927-May-11 2776.55 2760 2807 2760 2788 2787.5 2788.2230-May-11 2787.5 2806.1 2806.1 2761 2781.05 2780.6 2776.3231-May-11 2780.6 2793 2818 2776.55 2792.25 2785.65 2791.66

56

TCS

Day wise April and May Month Data

Data for TCS - EQ from 01-04-2011 to 31-05-2011

Date Prev Close

Open Price

High Price

Low Price

Last Price

Close Price Average

01-Apr-11 1183.9 1185 1198.75 1172.55 1181.9 1180.15 1181.9304-Apr-11 1180.15 1185 1216 1184 1215 1213.2 1200.3505-Apr-11 1213.2 1215.05 1243.95 1203.75 1238 1239.85 1221.7406-Apr-11 1239.85 1239 1246.95 1214.15 1214.15 1221.85 1229.0507-Apr-11 1221.85 1220 1220 1195.15 1198.75 1199.2 1202.4508-Apr-11 1199.2 1196.9 1214 1184.75 1193.2 1196 1194.81

57

11-Apr-11 1196 1180.15 1195 1175.3 1178.7 1178.4 1184.1113-Apr-11 1178.4 1175 1221.4 1174.3 1203.6 1210.1 1205.9815-Apr-11 1210.1 1216.9 1219.9 1180 1190 1191.4 1196.5118-Apr-11 1191.4 1198 1212.5 1140.05 1148.55 1144.6 1166.7119-Apr-11 1144.6 1144.6 1169.4 1140 1165 1164.7 1155.220-Apr-11 1164.7 1179.8 1224 1179.55 1221.75 1218.7 1206.421-Apr-11 1218.7 1241 1245.8 1170.85 1185.15 1192.1 1210.1325-Apr-11 1192.1 1197 1204 1172.65 1194 1197.85 1191.8226-Apr-11 1197.85 1200 1202 1180.35 1187 1189 1188.4327-Apr-11 1189 1194.95 1194.95 1176.05 1178 1180.6 1184.1628-Apr-11 1180.6 1180.15 1183.5 1155.6 1160.2 1158.65 1165.8129-Apr-11 1158.65 1172 1172 1150.25 1162.6 1165.65 1161.34

02-May-11 1165.65 1170 1177.5 1152.5 1156 1158.45 1162.2303-May-11 1158.45 1162 1162 1131 1135.45 1138.45 1147.0804-May-11 1138.45 1146 1146 1115.15 1137.35 1137.05 1126.7605-May-11 1137.05 1145 1145 1108.1 1111.3 1115 1122.6806-May-11 1115 1120 1153.5 1119.75 1145 1148.95 1136.0309-May-11 1148.95 1150 1151.95 1124.5 1133 1135.55 1134.8910-May-11 1135.55 1133 1159.95 1128 1139.5 1139.9 114611-May-11 1139.9 1139 1151.7 1126.1 1140 1140.25 1140.6412-May-11 1140.25 1133.9 1133.9 1108.35 1113.95 1111.75 1118.6213-May-11 1111.75 1112 1142.3 1112 1134 1127.1 1127.0816-May-11 1127.1 1121 1147.4 1120 1127.55 1131.1 1134.9517-May-11 1131.1 1122.05 1149.2 1122.05 1139.3 1141.7 1141.618-May-11 1141.7 1142.25 1161.5 1142.25 1157.5 1155.05 1155.1319-May-11 1155.05 1165 1170 1156 1165.25 1164.85 1164.6120-May-11 1164.85 1173.75 1183.4 1163.25 1173.9 1175 1175.0723-May-11 1175 1164 1170.5 1150 1165 1166.55 1161.7224-May-11 1166.55 1162.65 1172.8 1139.15 1149.1 1149.9 1154.3325-May-11 1149.9 1149.1 1149.9 1120 1128.5 1128.6 1129.5826-May-11 1128.6 1139 1143 1120 1135 1135.75 1132.5827-May-11 1135.75 1148.55 1149.9 1136.3 1141.5 1144.55 1144.730-May-11 1144.55 1151 1159.95 1142.3 1158.15 1151.95 1150.831-May-11 1151.95 1155 1177.7 1150.1 1157 1157.15 1164.19

58

WIPRO

Day wise April and May Month Data

Data for WIPRO - EQ from 01-04-2011 to 31-05-2011

Date Prev Close

Open Price

High Price

Low Price

Last Price

Close Price Average

01-Apr-11 480.2 477 479.6 470 475.05 476.05 473.3904-Apr-11 476.05 480 490 479.25 481 481 482.6205-Apr-11 481 482.3 485 472.05 481.35 481 477.1406-Apr-11 481 479.6 483.35 461.5 464.95 465.95 470.1207-Apr-11 465.95 464.95 473.75 458.65 473 472.45 467.2408-Apr-11 472.45 470.85 472 460.1 465 465.55 464.22

59

11-Apr-11 465.55 465 465 456.55 460.25 460 459.913-Apr-11 460 455 474.5 455 472.45 472.4 466.915-Apr-11 472.4 468 472 448 448.5 449.8 452.9118-Apr-11 449.8 450.1 455 444 445 445.4 449.0319-Apr-11 445.4 444 451.8 439.5 451 449.55 445.7320-Apr-11 449.55 452 465.8 452 461.25 463.65 459.1921-Apr-11 463.65 462.55 471.7 460.1 463.05 463.15 468.5825-Apr-11 463.15 464 468.4 460.65 467.05 466.2 464.2526-Apr-11 466.2 465 467.8 454.05 464.4 464.7 460.7627-Apr-11 464.7 448.8 454.7 444.4 450.15 451.1 449.7228-Apr-11 451.1 454 454.8 445 447 446.6 447.929-Apr-11 446.6 446 451.65 444.15 450 450.3 449.19

02-May-11 450.3 450 453.9 443 446 447.6 446.8903-May-11 447.6 445 449.9 433 433.8 436.65 442.6504-May-11 436.65 438.35 440.8 428 435.45 437 434.0505-May-11 437 436 438.7 428 436 432.5 432.6206-May-11 432.5 437 452.9 435.2 440.65 442.45 441.7509-May-11 442.45 440.55 442.5 435.2 436.5 436.15 437.6310-May-11 436.15 435.1 442.45 432.2 436.45 436.3 437.4711-May-11 436.3 439.9 442.9 435.25 436 439.15 439.7812-May-11 439.15 434.15 439.8 431.6 431.6 433.3 435.5613-May-11 433.3 433 445.2 432.5 443 442.55 442.2916-May-11 442.55 444.7 444.7 435.15 440 439.95 439.0117-May-11 439.95 437.2 443.7 434.3 438 437.5 436.7218-May-11 437.5 438 450 438 445 446.15 447.0719-May-11 446.15 448.6 448.6 440.2 444 442.8 443.1720-May-11 442.8 446.8 448.85 440.5 448.5 447.35 445.9623-May-11 447.35 440 442 435 440.25 440.05 439.0424-May-11 440.05 438.55 444.95 438.55 439.5 439.9 440.9825-May-11 439.9 442 442 430.55 436 435.6 435.7926-May-11 435.6 437.1 439.85 432.75 434 434.9 435.6627-May-11 434.9 433.1 444.7 433.1 442.7 442.05 440.0230-May-11 442.05 441.55 446.65 439.65 441.45 441.8 443.9831-May-11 441.8 440.4 450.5 440.4 447 446.4 447.73

60

INTERPRETATIONS

INFORMATION TECHNOLOGY SECTOR

Weekly wise data of April - 2011 Month

WEEKS INFOSYS %Change TCS %Change WIPRO %Change

1st week 1st Apr 3218 0 1180 0 476 0

2nd week 07th Apr 3246 0.87 1199 1.6 473 -0.63

3rd week 18th Apr 2906 -10.5 1145 -4.5 445 -5.92

4th week 26th Apr 2942 1.2 1189 3.84 465 4.49

TOTAL AVG -8.43 0.94 -2.06

61

Here you can see in the month of April all are in decreasing stage in 3rd week and 4th week is in all are high.. So there is fluctuating in the prices. when we compare all of them TCS showed a good amount of percentage change then comes WIPRO and INFOSYS.

Weekly wise data of May-2011 month

WEEKS INFOSYS %Change TCS %Change WIPRO %Change

1st week 3rd May 2911 -1.05 1139 -4.21 437 -6.02

2nd week 10th May 2880 -1.06 1140 0.09 436 -0.23

3rd week 17th May 2844 -1.25 1142 0.18 438 0.46

4th week 24th May 2844 0 1150 0.7 440 0.46

5th week 31st May 2786 -2.04 1157 0.61 446 1.36

TOTAL AVG -5.4 -2.63 -3.97

62

In the next month you can see all the companies are in negative. Among them TCS is better than WIPRO and INFOSYS and with a grate variation to certain extent. This month all companies are not in good percentage.

AXIS Bank

Day wise April and May Month Data

Data for AXIS - EQ from 01-04-2011 to 31-05-2011

Date Prev Close

Open Price

High Price

Low Price

Last Price

Close Price Average

01-Apr-11 1403.85 1410.3 1417 1378.6 1411 1407.75 1396.7504-Apr-11 1407.75 1411.1 1441.9 1407 1434 1432.1 1428.1305-Apr-11 1432.1 1448 1448 1409.1 1419.05 1424.75 1423.0906-Apr-11 1424.75 1420 1441.7 1415 1432 1428.95 1428.2607-Apr-11 1428.95 1430 1458 1416.7 1447.45 1445.75 1441.8108-Apr-11 1445.75 1446 1460.45 1435.25 1457.5 1449.7 1447.4211-Apr-11 1449.7 1437.2 1439.9 1403.95 1406.05 1409.85 1416.97

63

13-Apr-11 1409.85 1395 1445.9 1394.35 1444.9 1438.3 1425.3215-Apr-11 1438.3 1426.05 1457.9 1421.6 1428.25 1429.9 1435.5318-Apr-11 1429.9 1430 1450 1384.4 1390.55 1389.8 1411.0119-Apr-11 1389.8 1384 1416.8 1382.2 1409.5 1409.35 1402.7720-Apr-11 1409.35 1422 1452.8 1415 1451.5 1448 1433.1521-Apr-11 1448 1449 1457.8 1438.65 1449 1447.55 1447.8525-Apr-11 1447.55 1398 1408.5 1371 1377.6 1377.3 1387.2826-Apr-11 1377.3 1387.8 1387.8 1338.65 1352.6 1356.35 1354.4427-Apr-11 1356.35 1371.2 1372 1333 1344.05 1343.85 1345.5228-Apr-11 1343.85 1354.9 1354.9 1324.1 1341.5 1333.7 1339.3229-Apr-11 1333.7 1338 1342.8 1270.3 1287.05 1286.6 1297.13

02-May-11 1286.6 1297.9 1298 1260.1 1273.8 1276.45 1276.4903-May-11 1276.45 1273.7 1295.5 1210.55 1236.5 1230.4 1246.7804-May-11 1230.4 1229.5 1249 1215 1235 1235.6 1232.8905-May-11 1235.6 1239.9 1249 1202.65 1206 1209.85 1222.2906-May-11 1209.85 1212 1264.9 1212 1257.2 1258.2 1244.3609-May-11 1258.2 1260.1 1268.55 1231.25 1234.2 1237.75 1242.5110-May-11 1237.75 1239.95 1242.5 1218 1228.35 1228.7 1230.3711-May-11 1228.7 1225 1244.75 1224 1230 1228.25 1233.5212-May-11 1228.25 1223 1239.85 1201 1209.1 1205.65 1218.0313-May-11 1205.65 1210.5 1259.8 1208.65 1246.8 1244.7 1241.8216-May-11 1244.7 1241.6 1241.6 1218.2 1223.9 1224.4 1225.9117-May-11 1224.4 1226.1 1241.5 1206.55 1219 1219.4 1221.4418-May-11 1219.4 1223 1232 1202.2 1218.45 1217.95 1215.6519-May-11 1217.95 1230 1230 1207.15 1215.05 1214.65 1215.2720-May-11 1214.65 1224 1231.5 1208 1220.05 1220.9 1221.3223-May-11 1220.9 1215 1218.05 1183 1183 1188 1194.1324-May-11 1188 1195 1215 1186.5 1204.1 1202.4 1201.6925-May-11 1202.4 1203.9 1203.9 1175 1183.85 1181.65 1183.7726-May-11 1181.65 1194.5 1212 1184.5 1209.5 1208.4 1197.5327-May-11 1208.4 1214.95 1228 1206.25 1218.7 1220.6 1218.4730-May-11 1220.6 1224 1248 1224 1245.65 1245.25 123931-May-11 1245.25 1251.9 1289 1251 1280 1282.5 1271.38

64

HDFC Bank

Day wise April and May Month Data

Data for HDFC - EQ from 01-04-2011 to 31-05-2011

Date Prev Close

Open Price

High Price

Low Price

Last Price

Close Price Average

01-Apr-11 701.2 699 710.35 696.05 708.5 708.2 705.5604-Apr-11 708.2 713.75 713.75 697.55 705.4 705.55 702.7305-Apr-11 705.55 703 711 693.3 698.5 698.35 699.1806-Apr-11 698.35 700.75 706.65 693.55 699.35 698.9 699.68

65

07-Apr-11 698.9 696.05 719.9 696.05 715.95 715.7 712.3508-Apr-11 715.7 716.1 722.5 706.7 711.6 710.65 713.1611-Apr-11 710.65 698.3 706.35 688.3 690 690.15 694.2613-Apr-11 690.15 686.15 721.8 684 721.2 718 708.3315-Apr-11 718 715.3 723.25 702.65 703.9 706.7 715.7718-Apr-11 706.7 709.9 718.35 689.05 693.5 692.1 701.419-Apr-11 692.1 688.3 699.85 686.95 691.4 694.6 693.1320-Apr-11 694.6 701.7 716.65 695 715 715 706.2821-Apr-11 715 717.4 733.85 717.4 733 732.2 728.5225-Apr-11 732.2 732 737.9 727.55 729 731.05 733.626-Apr-11 731.05 731 733 709.1 723.45 722.85 717.4627-Apr-11 722.85 721.5 726 716.2 720 722.1 721.4628-Apr-11 722.1 722.1 723.1 707 719.5 717.35 714.3229-Apr-11 717.35 715 720.4 695.8 708 706.8 705.83

02-May-11 706.8 710.1 711.35 696.55 698.8 699.4 700.5803-May-11 699.4 696.1 704.8 681 683.7 684.35 692.5504-May-11 684.35 686 690.65 659 661.15 662.5 670.2205-May-11 662.5 665.95 673.5 651.65 653.5 655.05 662.3406-May-11 655.05 659.85 669.85 655 665.5 664.8 664.0609-May-11 664.8 670 670 656.6 664.4 664.55 664.5610-May-11 664.55 669.7 669.7 650.1 660.6 661.1 659.7411-May-11 661.1 665.1 668.1 656 665.5 666.1 662.3112-May-11 666.1 660 661.9 646 646.85 647.2 653.913-May-11 647.2 650 655 640.75 645.6 644.7 649.9116-May-11 644.7 646 646.2 632 634.25 634 636.1417-May-11 634 635 638.7 626.55 631.9 631.6 632.6318-May-11 631.6 634.8 647.6 634.8 645 646.05 640.1319-May-11 646.05 649.75 649.85 637.6 646.15 643.85 643.7620-May-11 643.85 649.85 663.4 640 657.85 658.85 654.6423-May-11 658.85 652.45 653.15 640.05 644.2 646.55 647.7924-May-11 646.55 651.7 659.85 645.05 650.4 649.4 652.525-May-11 649.4 650 656.5 641.1 644 644.25 648.5226-May-11 644.25 645.2 649.9 635 642.5 643.15 642.5727-May-11 643.15 640.5 658.4 640.5 656.6 656.3 653.0830-May-11 656.3 658 671.5 658 667.3 668.55 666.1531-May-11 668.55 669.8 688.8 669.8 684.75 684.05 680.72

66

ICICI Bank

Day wise April and May Month Data

Data for ICICI - EQ from 01-04-2011 to 31-05-2011

Date Prev Close

Open Price

High Price

Low Price

Last Price

Close Price Average

01-Apr-11 1116.2 1114.8 1119 1095 1102.6 1102.9 1103.1404-Apr-11 1102.9 1105.25 1126.95 1105.25 1119.05 1119.2 1118.0105-Apr-11 1119.2 1124.75 1127.9 1104.1 1107 1111.25 1112.8406-Apr-11 1111.25 1108.8 1119.5 1096 1097 1100.5 1106.68

67

07-Apr-11 1100.5 1100 1114.4 1093.7 1101.4 1104 1104.4408-Apr-11 1104 1104.5 1118.9 1091.35 1097.95 1098.3 1103.0811-Apr-11 1098.3 1085 1108.4 1085 1098 1100.6 1099.6913-Apr-11 1100.6 1093.8 1130 1086.2 1126 1126.85 1116.1815-Apr-11 1126.85 1119.95 1139 1098.25 1100.65 1101.7 1116.7218-Apr-11 1101.7 1102.1 1117.35 1081.55 1088.5 1084.1 1098.9419-Apr-11 1084.1 1084 1093.5 1072 1091.4 1090.05 1084.6920-Apr-11 1090.05 1103.7 1113.9 1095 1111 1112.35 1106.2221-Apr-11 1112.35 1121.7 1123.95 1111.5 1117.3 1118.5 1118.3725-Apr-11 1118.5 1114.5 1126.35 1109.1 1109.5 1112.65 1119.526-Apr-11 1112.65 1118.5 1125.4 1098.15 1117.05 1121.45 1111.5227-Apr-11 1121.45 1127.95 1128.5 1102 1108.95 1106.85 1113.2428-Apr-11 1106.85 1118 1127.95 1085 1112.15 1117.5 1112.2829-Apr-11 1117.5 1116 1128 1103.1 1108.8 1114.45 1119.23

02-May-11 1114.45 1113.8 1118.3 1094.4 1096.8 1098.3 1101.8903-May-11 1098.3 1096 1107.95 1056.4 1073.8 1067.8 1081.9204-May-11 1067.8 1059.75 1072 1042.8 1056.15 1057.65 1058.9105-May-11 1057.65 1057 1067.3 1021 1021.4 1030 1040.806-May-11 1030 1033 1088.7 1032.55 1079.4 1083.8 1070.9609-May-11 1083.8 1093.4 1093.4 1066.25 1082 1083 1079.4610-May-11 1083 1081 1085 1066.25 1077.6 1076.2 1077.1611-May-11 1076.2 1078 1081.7 1061 1077.15 1076.7 1071.1612-May-11 1076.7 1070 1078.95 1050 1051.2 1052.15 1063.113-May-11 1052.15 1055 1096.4 1045.3 1076.15 1073.05 1077.4616-May-11 1073.05 1063.5 1066.8 1055 1056.05 1057.75 1060.5917-May-11 1057.75 1058 1062.75 1023 1040.4 1039.75 1039.9618-May-11 1039.75 1045 1051.75 1025.05 1032.3 1032.25 1034.7719-May-11 1032.25 1044 1044 1023.75 1032.2 1030.1 1031.8320-May-11 1030.1 1038 1054.1 1025 1042.5 1043.2 1042.4823-May-11 1043.2 1036.9 1036.9 1003 1005.4 1006.9 1014.1124-May-11 1006.9 1008.1 1030.95 1008.1 1020.65 1018.8 1020.1625-May-11 1018.8 1021 1021 1003.4 1011.5 1008.75 1008.9826-May-11 1008.75 1018.6 1032 1013.9 1023 1026.25 1024.3727-May-11 1026.25 1030.25 1073.7 1030.2 1072.7 1068.15 1059.930-May-11 1068.15 1072 1083.35 1070.1 1078.95 1077.7 1077.0231-May-11 1077.7 1080.8 1094.8 1073.1 1085.1 1086.1 1087.66

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INTERPRETATIONS

BANKING SECTOR

Weekly wise data of April-2011 Month

WEEKS AXIS %Change HDFC %Change ICICI %Change

1st week 01st Apr 1408 0 708 0 1103 0

2nd week 07th Apr 1446 2.7 716 1.13 1104 0.09

3rd week 18th Apr 1390 -3.87 692 -3.35 1084 -1.81

4th week 26th Apr 1356 -2.45 723 4.48 1122 3.51

TOTAL AVG -3.62 2.26 1.79

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Here you can see that in Banking Sector HDFC Bank showed a considerable increase than ICICI and AXIS Banks. Here if we take out Average HDFC bank performed well in this month compare to any other bank were as other 2 were showing low values.

Weekly wise data of May-2011 month

WEEKS AXIS %Change HDFC %Change ICICI %Change

1st week 03rd May 1230 -9.29 684 -5.39 1068 -4.81

2nd week 10th May 1229 -0.08 661 -3.36 1076 0.75

3rd week 17th May 1219 -0.81 632 -4.39 1040 -3.35

4th week 24th May 1202 -1.39 649 2.69 1019 -2.02

5th week 31st May 1283 6.74 684 5.39 1086 6.58

TOTAL AVG -4.83 -5.06 -2.85

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In the month of May all banks are showing negative performance compare to last month. .But overall this month all the banks are not in good performance.

Overall percentage Change data of IT Sector in Two Months

MONTHS INFOSYS% TCS % WIPRO %

APRIL -8.43 0.94 -2.06

MAY -5.4 -2.63 -3.97TOTAL % -13.83 -1.69 -6.03

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If we see over all percentages in IT sector TCS showed average returns in two months. But if we see total percentage change it is showing negative performance. Not only TCS but also INFOSYS and WIPRO companies are showing negative indication in two months.

Overall Percentage Change data of Banking Sector in Two Months

MONTHS AXIS BANK % HDFC % ICICI %

JANUARY -3.62 2.26 1.79

FEBRUARY -4.83 -5.06 -2.85TOTAL % -8.45 -2.8 -1.06

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If we see over all percentages in banking sector none of them are showing positive in the month of April and May. Whereas comparing with one another ICICI Bank is better performance even though it is in negative.

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Findings:

In the month of April in IT sector TCS showed a postive sign comparing to the other IT companies like Infosys and wipro.

However, The first place taken by TCS, but it showed and average performance in percentage. where as wipro also shown as negatively but comparing to the Infosys, Wipro is better.

Because of the darstic change in third week of Infosys company, It is showing negatively.

In the month of May, All the IT companies shown as negatively including TCS. Even though comparing to all other companies TCS is better.

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where as in the month of May also Infosys shows still negative sign comparing to TCS and Wipro.

In Banking sector, In the month of April HDFC shows the postive sign when comparing to AXIS and ICICI Bank.

Even though ICICI Bank shows the postive sign, It is less than the HDFC Bank in parcentage wise.

However, AXIS Bank shows the negative sign comparing to other Banksin the month of April.

In the month of May all Banking sectors showed negative signs. This was a grate change comparing to the previous month.

In previous month HDFC Bank showed the postive sign but, In the month of May it showed the negative sign.

Comparing to the One with other Banks ICICI bank is better when comparing to the AXIS and HDFC Bank.

While in comparing overall percentage in IT sector for two months all companies shows negative signs itself.

While compare to one another TCS did a better performance than other IT Companies.

In overall percentage Change in Banking Sector for two months, All Banks are in showing negative signs.

So, To say clearly the Banking sector is showing good performance even though it is showing negative sign comparing to the IT sectors.

Suggestions:

I suggest that it is more benefit for an investor to invest in the Banking sector then the IT sector.

When it comes to IT sector it is better to invest in TCS Company than the other IT Companies. It

shows a good performance.

In banking sector it is better not invest in any Bank, If any investor want to invest in Banking sector

than I suggest them to invest in ICICI and HDFC Bank.75

As of now you can see IT and Banking sector are showing average performance. So I suggest the

Investor to Invest in banking sector.

CONCLUSIONS

1. In the Equity analysis of Banking and IT stocks – A comparative study we conclude both sectors have not

given good Returns. In the recent years advances in financial markets and technology have made derivate comparitive

easy for the investors.76

2. Equity market in India is growing rapidly. Trading in equities require more than average understanding of finance.

Being now markets. Maximum number of investors have not yet understood the full implications of the trading in

Capital market. SEBI should take actions to create awareness in investors about the Capital market.

3. Introduction of equity market implies better risk management. These markets can greater depth, stability and

liquidity to India capital markets. Successful investor will always looks after the Equity returns and at the same time

he looks after the risk too.

4. In order to increase the Equity market in India SEBI should revise some of their regulation like aware of Normal

People, participations in markets.

5. Equity Analysis is just like a observing the market and Awareness of the Equity product.

BIBILIOGRAPHY

WWW.NSEINDIA.COM

WWW.BSEINDIA.COM

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WWW.NETWORTHDIRECT.COM

WWW.SEBI.ORG.IN

WWW.MONEYCONTROL.COM

BOOKS

1. INVESTMENT ANALYSIS AND PORTFOLIO MANAGEMENT. .

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