23361395 Indian Capital Markets

8/12/2019 23361395 Indian Capital Markets

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INTRODUCTION

TOCAPITAL

MARKETINSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD. Page 1


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INDIAN CAPITAL MARKET

INTRODUCTION:

Every bus!ess u!" !ee#s $%!ey "% !a!'e "s a'"v"es. T(e $%!ey

s !ves"e# ! )(ys'a* res%ur'es, .e. *a!# a!# bu*#!g, $a'(!es a!#

e+u)$e!", s"%' % ra- $a"era*, e"'., -('( are use# by "(e e!"er)rse !

)r%#u'"%!. A** "(ese res%ur'es "%ge"(er '%!s""u"e 'a)"a*/. Ca)"a* s

%"e! #e!e# as 0-ea*"( use# ! "(e )r%#u'"%! % ur"(er -ea*"(.

A bus!ess e!"er)rse 'a! rase 'a)"a* r%$ var%us s%ur'es. 2%!g3

"er$ u!#s 'a! be rase# e"(er "(r%ug( ssue % se'ur"es %r by b%rr%-!g

r%$ 'er"a! !s""u"%!s. S(%r" "er$ u!#s 'a! a*s% be b%rr%-e# r%$

var%us age!'es. T(us bus!ess u!"s 'a! rase 'a)"a* r%$ ssue %

se'ur"es a!# b%rr%-!gs 4*%!g3"er$ a!# s(%r"3"er$5. I! a##"%! "%

bus!ess u!"s, )ub*' '%r)%ra"%!s a!# g%ver!$e!" are "(e %"(er $a6%r

b%rr%-ers % u!#s. T(e *e!#ers % u!#s !'*u#e "(e !#v#ua* !ves"%rs

4"(e (%use(%*# se'"%r5, "(e !s""u"%!a* !ves"%rs, ba!s, a!# s)e'a*

!#us"ra* !a!'!g !s""u"%!s. T(e b%rr%-ers a!# *e!#ers br%ug("

"%ge"(er "(r%ug( !a!'a* $are"s. T(e "er$ 0!a!'a* $are"

INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD. Page 7


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'%**e'"ve*y reers "% a** "(%se %rga!8a"%!s a!# !s""u"%!s -('( *e!#

u!#s "% bus!ess e!"er)rse a!# )ub*' au"(%r"es. I" s '%$)%se# % "-%

'%!s""ue!"s 9 "(e $%!ey $are" a!# "(e 'a)"a* $are". :(*e "(e %r$er

#ea*s -"( "(e )r%vs%! % s(%r"3"er$ 're#", "(e *a""er #ea*s -"( "(e gra!"% $e#u$3"er$ a!# *%!g3"er$ 're#".

INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD. Page ;


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CAPITAL MARKET:

Ca)"a* Mare" s "(e ba'b%!e % a!y '%u!"ry/s e'%!%$y. I"

a'*"a"es '%!vers%! % sav!gs "% !ves"$e!". I! I!#a "(e '%$$%!

!ves"%rs )ar"')a"!g ! "(e e+u"y $are" s $assve. T(e !u$ber %

'%$)a!es %er!g e+u"y "(r%ug( )r$ary $are"s !'rease#

'%!"!u%us*y ! "(e )%s" !#e)e!#e!'e )er%#. T(e 'a)"a* $are" s

a'"ua**y re*e'"!g -(a" s (a))e!!g ! "(e e'%!%$y a!# -(a" s e


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T(e s"%' $are" ! I!#a s -"!ess!g (g( v%*a"*"y. T(s v%*a"*"y

(as sg!'a!" $)a'" %! "(e !ves"$e!" $a!age$e!" a!# "(e ra"e %

re"ur!. T(e !a#e+ua'y % "(e sys"e$ be'%$es %bv%us "(e !s""u"%!s

! "(e sys"e$ a* "% -"(s"a!# "(e )ressures % $are" %r'es su'( as "(e

v%*a"*"y. T(e regu*a"%ry $easures r%$ SEBI, "(e $a! regu*a"%r ! "(e

I!#a! F!a!'a* Sys"e$, (ave *e!" %r'e "% "(e su)ervs%ry !%r$s a!#

$)r%ve# "(e s"a!#ar#s % #s'*%sure, br!g!g grea"er "ra!s)are!'y !

"(er -ae.

A! $)%r"a!" ssue re*a"e# "% "(e Ca)"a* Mare"s s "(e u!#a$e!"a*

)(*%s%)(y "(a" 0S(a)e u) "(e e'%!%$y a!# "(e 'a)"a* $are"s -*

re*e'" -(a" s a'"ua**y e


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PROBLEM STATEMENT:

I! ear*er "$es "(e !ves"%rs are !%" s% a-are % "(e $are" ! %"(er

-ay say "(a" "(e !ves"%rs are !%" "%% $u'( !%-*e#geab*e. As "(ey are

!%" "%% $u'( !%-*e#geab*e "(ey !ves"e# ! $are" -"(%u" us!g a!y

'%!'e)" a!# s**s. T(s s"u#y s a*s% %r e!(a!'!g "(e !%-*e#ge %

var%us !ves"%rs. S"u#y a*s% sugges"e# "(a" (%- ge!u!e !ves"%rs s(%u*#

rea'" be%re a!# a"er !ves"!g ! $are".

T(e I!#a! 'a)"a* $are" s a'e# $a!y )r%b*e$s a!# "(s s"u#y s

rs"*y #e!e# -(a" s "(e )r%b*e$ ! I!#a! 'a)"a* $are" as % 17.

1. As % 17, "(e B%$bay S"%' E


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'%!s%*#a"e# )r'e, !s"ea# % u!bu!#*!g "(e "ra#e )r'e a!# "(e

br%erage ee.

;. As -"( a** "ra#!g *%%rs, "(ere -as !% )r'e9"$e )r%r"y, s% users %"(e $are" -ere !%" assure# "(a" a "ra#e -as e


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. A )e'u*ar $are" )ra'"'e 'a**e# ba#*a a**%-e# br%ers "% 'arry

)%s"%!s a'r%ss se""*e$e!" )er%#s. I! %"(er -%r#s, eve! %)e! )%s"%!s a"

"(e e!# % "(e %r"!g(" ## !%" a*-ays (ave "% be se""*e#.

Ab%ve, a** are "(e )r%b*e$s ! "(e I!#a! 'a)"a* $are" as % 17

bu" "$e '(a!ge a!# $%s"*y "(ese )r%b*e$s are s%*ve#.

OBJECTIVE

INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD. Page


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OF THE

STUDY

OBJECTIVES OF THE STUDY:T(e s%*e e%r" be(!# 'arry!g %u" "(s s"u#y s "% )r%v#e gu#a!'e %

I!#a 'a)"a* $are". A*s%, #e!!g "(e re*a"%!s() % I!#a! 'a)"a

$are"s -"( g*%ba* 'a)"a* $are"s.



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1. T% u!#ers"a!# "(e )ra'"'a* & "(e%re"'a* as)e'"s % "(e CAPITA2

MARET OF INDIA.

7. T% )r%v#e "(e !%r$a"%! "% "(e )r%s)e'"ve !ves"%rs ab%u" "(e

au"% '%$)a!es

% au"% seg$e!".

;. T% u!#ers"a!# "(e re*a"%! be"-ee! s"%' $are" a!# I!#a!

e'%!%$y ! '%$)ars%!

-"( "(e -%r*#/s e'%!%$y.

?. T% gu#e & (e*) )r%bab*e !ves"%rs (%- "% !ves" !"% a )ar"'u*ar

se'"%r a!# ! -('("y)e % $are" '%!#"%!s.



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RESEARCH

METHODOLOGY



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STUDY DESIGN:1. Data sourc

Se'%!#ary Da"a=

I!#us"ry Re)%r"s

I!"er!e"

B%%s & Maga8!es

!" A#a$%s&s ' I#tr(rtat&o#

T(e var%us "%%*s %r a!a*yss use# are gra)(s, '(ar"s, )er'e!"age

gr%-"(, se'%!#ary #a"a.

METHOD OF ANALYSIS:

1. Fu#)a*#ta$ A#a$%s&s

Fu!#a$e!"a* a!a*yss #%!e %r s"u#y!g "(e (%- u"ure )r'es % "(e

'%$)a!y -** )er%r$. Fu!#a$e!"a* a!a*yss s useu* "% !#!g "(e rg("

va*ue % "(e '%$)a!y. Fu!#a$e!"a* a!a*yss !'*u#es "(e s"u#y %

E'%!%$y, I!#us"ry a!# C%$)a!y. F%r es"$a"!g a!y '%$)a!y/s s(are

)r'e !%" %!*y "(e (s"%r'a* )er%r$a!'e #a"a % "(a" '%$)a!y are very

useu* bu" a*s% "(e +ua!""a"ve a!a*yss % "(e reve!ue, asse"s *+u#"y,e


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INTRODUCTI

ON TOORGANI+ATI

ON

INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD. Page 1;
http://www.sharekhan.com/Default.aspx


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COMPANY PROFILE:S(are(a! s a! e+u"es %'use# %rga!8a"%! "ra'!g "s *!eage "% SSI

4S(r)a* Seva!"*a* a!"*a* Is(-ar*a*5, a ve"era! e+u"es s%*u"%!s

'%$)a!y -"( %ver #e'a#es % e %!e "(a"

(e*)s y%u $ae !%r$e# #e's%!s a!# s$)*es !ves"!g ! s"%'s. T(e

'%$$%! "(rea# % e$)%-er$e!" s -(a" S(are (a!/s a** ab%u"J

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S,ar -,a# &s a$so a.out /ocus. S(are (a! #%es !%" '*a$ e


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SSI (as bee! v%"e# "(e bes" #%$es"' br%erage ! I!#a by Asa $%!ey

P%**s/ 7?. A*s% SSI s be!g ra"e# as N%. 1 F!a!'a* Resear'(er by

Bus!ess T%#ay, ! "(e Survey '%!#u'"e# %! 2ea# Ma!agers % a** "(e

Mu"ua* Fu!#s.

Bas'a**y, "(e '%$)a!y s a $are" *ea#er ! )r%v#!g br%er!g serv'es

a!# (as a "%) "ur!%ver ! "ra#!g a!# "(e (g( "ur!%ver $aes " "(e !%. *

! "(e $are". T(e $a! #ere!'e s "(e serv'es "(a" "(ey )r%v#e "% "(e

!ves"%rs -(% rea**y !ee# ". T(e serv'es are #s'usse# ! $%re #e"a* !

"(e $are"!g a'"v"es. T(e '*e!"s are $a!age# -"( a re!#*y '%r)%ra"e

'u*"ure "% gve ($ $%re be!e"e# !ves"$e!" #eas a!# $%"va"e ($

-(e!ever (e !ee#s. T(e '%$)a!y s )r%v#!g as $a!y ")s "% "(e '*e!"s

4)re3$are", %!*!e a!# )%s"3$are"5 %r $%re a!# $%re "ra#!g #eas a!#

"(e $a!ager (e*)s ea'( '*e!" "% '%!'e!"ra"e %! a e- s'r)"s s% "(a" (e

'a! $a!age "(e )r%"L*%ss.

I! s(%r", S(are (a! s 'urre!"*y (av!g a g%%# )%s"%! ! "(e $are" -"(

"(e (g(es" !% % "ra!sa'"%!s a!# a*s% "(e (g(es" "ur!%ver 4buy!g &

se**!g5 ! I!#a a!# a *ea#er ! )r%v#!g be""er serv'es "% "(e !ves"%rs.

S(are (a!, I!#as *ea#!g s"%' br%er s "(e re"a* ar$ % SSI, a!#

%ers y%u #e)%s"%ry serv'es a!# "ra#e e


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"ra#!g )r%#u'"s, -('( are (av!g %!e % "(e (g(es" su''ess ra"es ! "(e

!#us"ry "(e *arges" '(a!.

NATURE :S(are(a! s bas'a**y a serv'e )r%v#!g r$. I" s a s"%'

br%!g r$ -('( )r%v#!g serv'es % se**!g a!# )ur'(ases % s"%'s %!

be(a* % %!e !ves"%r r%$ a!%"(er !ves"%r a!# "(e! "ra!ser s"%'s "%

res)e'"ve #e$a"era*8e# a''%u!". S(are(a! 2$"e# s a re"a* !a!'a*

serv'es )r%v#er -"( a %'us %! e+u"es, #erva"ves a!# '%$$%#"es

br%erage e


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'%$)a!y -as a-ar#e# "(e 7@ M%s" Preerre# S"%' Br%!g Bra!# by

Aa-a8 C%!su$er %"e.

SSI !a$e# "s %!*!e #vs%! as SHARE HAN a!# " s !"% re"a*

Br%!g.

T(e bus!ess % "(e '%$)a!y %ver(au*e# years ag% %! February ,

7

I" a'"s as a #s'%u!" br%erage (%use "% a u** serv'e !ves"$e!"

s%*u"%!s )r%v#e

I" (as s)e'a*8e# resear'( )r%#u'" %r "(e s$a** !ves"%rs a!# #ay

"ra#ers.

2arges" '(a! % s(are s(%)s -('( s 7@ s(are s(%)s ! 7 '"es,

?1@ Fra!'(sees & %ver 1 Bra!'(es a'r%ss I!#a.

I" (as 7@$L"ra#es every #ay.

2ea#!g )*ayer "%#ay -"( 7 $are" s(are.

Over %!*!e '*e!"s.

T(e s"e -as a*s% *au!'(e# %! February , 7 a!# !a$e# " as---.s(are(a!.'%$.

T(e S)ee# Tra#e a''%u!" % s(are (a! s "(e !e


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Pu#c, $: Your guide to the financial jungle

S"a"e$e!" #e!es "(a" S(are(a! s !%" 6us" a! s"%' br%!g

r$ -('( (e*)s "(e !ves"%r "% #% "ra#e %! be(a* % "(e$ bu" "(ey

a*s% gu#e "(e !ves"%r "% ! -('( se'"%r "% !ves", -(e! "% !ves",

(%- $u'( a$%u!" "% !ves". S(are(a! #% a** "(ese a'"v"es a"er

u!#ers"a!#!g "(e )ar"'u*ar !ves"%r/s !ee#s, %!e !ves"%r/s !ee#

#ers r%$ a!%"(er !ves"%r. S% S(are(a! s $%re !"eres"e# !

gu#!g "(e !e- !ves"%r -(% -a!" "% s"ar" !ves"$e!" ! s"%'

$are", %r "(e !ves"%r -(% s !e- ! s"%' $are" "(ere s s)e'a*

gu#a!'e ava*ab*e %! S(are(a!/s -ebs"e .e. %!

---.s(are(a!.'%$"%)' 'a**e# first step -('( s #esg!e#

s)e'a**y %r "(e !e- !ves"%r.

As a retail brokering outfit, customer service ranks extremely high

in our list of priorities. Effectively managing client expectations and

offering them a high quality of customer service are key for us.

Kta# Par-,0

Chief echnology !fficer,

"harekhan #imited

T(e ab%ve s"a"e$e!" -as gve! by S(are(a!/s '(e "e'(!%*%gy

%'er -('( s(%-s "(a" -(e! "(ey (a# !"r%#u'e# %!*!e "ra#!g a'*"y

! "(e year 7, "(ey -a!" "% be " as 'us"%$er3re!#*y as -e** as

'%!ve!e!" a*s% s% "(a" a !e- !ves"%r 'a! a*s% use ". T% su$ u),

S(are(a! br!gs "% y%u a user3 re!#*y %!*!e "ra#!g a'*"y, '%u)*e#

-"( a -ea*"( % '%!"e!" "(a" -** (e*) y%u s"a* "(e rg(" s(ares.

SSKI Grou( 1 Cor(orat StructurINSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD. Page 1
http://www.sharekhan.com/http://www.sharekhan.com/


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SSKI Corporate

Finance Pvt.Ltd.

Investment Bankingarm of the group

Shareholding pattern

50.5% SSKI SecuritiesPvt. Ltd.

4.5 % !orakhia famil"

SSKI Investor Services

Pvt. Ltd.

#etail $roking arm of thegroup

Shareholding pattern

5% !orakhia famil"&promoters'

().5% *SB+ Private,-uit" !anagement!auritius

().5% /irst +arl"leentures !auritius

1% Intel Pacific Inc.

SSKI Securities

Pvt. Ltd.

Morakhia Family &

Associates

O2#s 345

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I#t6rat) E7u&t% So$ut&o#s Pro8&)r:

A$%!g "(e "%) ; bra!#e# re"a* serv'e )r%v#ers

Mu*"3'(a!!e* a''ess "% '*e!"s

Ta*%r $a#e resear'( a!# )r%#u'"s

De)%s"%ry Serv'es

Derva"ves

I!!%va"ve )r%#u'"s %r e!(a!'e# )er%r$a!'eBes" resear'( "ea$ ! "(e -%r*#

CORPORATE OFFICE


O2#s

39"35 o/


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HA! "FFIC 2 S*3#,K*3 L6.

3 7 80 P*9,I* *9:S,

P*9,I* !ILL +9P:6

S,3P3I B3P3 !3#;

L9 88 1500 =10 15 00

$% SI 2 ???.sharekhan.com

C" 2 3#: S*3*

otal Share Shops 2 !ore than )85@ in more than 8)0 cities

otal mployees 2 !ore than =000 across India

HR POLICIES ' PERFORMANCE APPRAISAL:



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HR (o$&c&s ' (roc)urs

C%!#u'"= O'e "$e

T(e %'a* "$!g are =;a.$ "% =%% ).$. Re)%r"!g eve! %!e

$!u"e a"er =;a.$ s(a** be a *a"e $ar sys"e$. ; su'( *a"e $ars

! "(e $%!"( a"er be '%!s#ere# as 1#ay/s *eave. 2e -se e$)*%yee

a""e!#!g %'e a"er 11=;a.$ %r *eav!g %'e be%re ;=;).$ -**

be $are# abse!" %r (a* #ay.

I a!y HOD #e'#es %! #ere!" -%r "$!g %r (s "ea$, "(e! "$!g

(as "%

be %**%-e# a''%r#!g*y & "(e *a"e '%$!g -** be as )er "(e a))r%va*

% "(e

HOD

C%!#u'" 3 gr%%$!g



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Pr/or*a#c a((ra&sa$

S(are(a! be*eve ! $er"%'ra'y. T(ere%re, )r%$%"%!, !'re$e!", 6%b$%ve$e!", !'e!"ves, b%!us re-ar# a!# re'%g!"%! a** are base# %!

)er%r$a!'e a))rasa* % "(e e$)*%yee .)er%r$a!'e a))rasa* "ae )*a'e

%! +uar"er*y bass & a #e"a*e# reve- s u!#er"ae! %! a! a!!ua* bass,

"(ere 'a! be )er%r$a!'e a))rasa* a!# $%!"%r!g %! a $%!"(*y bass as

-e**.

T(ere e$)*%yee 'a! be br%a#*y '*asse# ! "-% 'a"eg%res !a$e*y, sa*es

a!# su))%r". %r s"a "(e '%re 6%b s "% a'(eve "(er "arge" a!# ge" v%*u$e

% bus!ess -('( e


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ORGANI+ATIONAL STRUCTURE:



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PRODUCT PROFILE:

S,ar-,a# D(os&tar% Sr8&cINSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD. Page 7@


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De$a"era*8a"%! a!# "ra#!g ! "(e #e$a" $%#e s "(e saer a!# as"er

a*"er!a"ve "% "(e )(ys'a* e


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!"% a! agree$e!" -"( be!e'a* %-!ers. I" s re+ure# "(a" se)ara"e

a''%u!"s s(a** be %)e!e# by every )ar"')a!" ! "(e !a$e % ea'( % "(e

be!e'a* %-!er a!# "(e se'ur"es % ea'( be!e'a* %-!er s(a** be

segrega"e# a!# s(a** !%" be $


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Everyb%#y "a*s ab%u" $u"ua* u!#s, bu" -(a" e


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O#$ IPO

O!*!e IPO 4I!"a* Pub*' Oer!g5 s a !e- serv'e s"ar"e# by S(are

(a! %r )r%v#!g "(e a))*'a"%! %r$ % a!y '%$)a!y/s ssues % s(ares

6us" *e "(e TCS ssue 'a! be subs'rbe# by **!g a! %!*!e %r$ "% re#u'e

"(e )a)er -%r a!# "(e u!# "ra!ser a'*"y s a*s% )r%v#e# "% "(e '*e!"s

%r "ra!serr!g "(e u!#s %!*!e. I" s gve! %! "s -eb3s"e %r (e*)!g "(e

'*e!"s -(% are !%" ab*e "% '%**e'" "(e %r$s $a!ua**y a!# "(e s)ee# %

**!g a!# re#u'!g "(e rs % $s)*a'!g % %r$s, !%" rea'(!g ! "$e,

e"'.

O#$ Co**o)&t% Tra)O!*!e '%$$%#"y "ra#!g %ers a -ay %r a! %)e!, $a!y3"%3$a!y

sys"e$, -(ere every user (as e+ua* a''ess "% )r'e +u%"es a!# "ra#!g

u!'"%!a*"y. I" )r%v#es a *eve* )*ay!g e*# %r a**, -"(%u" av%r"s$ %r'%!"r%* by a '(%se! e-, -(ere a!y user 'a! ve- a** +u%"es )%s"e# by

%"(er users ! rea* "$e, a'" %r "ra#e %! +u%"es )%s"e# by %"(ers, )%s" "(er

%-! )r'es a!# +ua!""es %r %"(ers "% "ra#e.

2+u#"y, %r "ra#e a'"v"y, s )er(a)s "(e bes" $easure % su''ess % a!

%!*!e "ra#!g '%$$%#"y "ra#!g sys"e$. :"( $%s" %!*!e '%$$%#"y

"ra#!g sys"e$s, "ra#ers 'a! be sure % !#!g a! !"eres"!g $are"#eve*%)$e!" %r "ra#!g %))%r"u!"y a*$%s" every "$e "(ey *%g %!.

A** +u%"es )%s"e# by users %! a!y %!*!e '%$$%#"y "ra#!g sys"e$s are

*ve a!# r$. T(ey 'a! be a'"e# %! -"( u** assura!'e % a '%$)*e"e#

"ra!sa'"%!.



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T(e grea"es" a#va!"age % a! %!*!e sys"e$ %r "ra#!g s "(a" 6us" a '*'

'a! be use# "% (" a b# %r *" a! %er.

T(e O!*!e "ra#!g sys"e$ %)era"es a*$%s" '%!"!u%us*y ar%u!# "(e '*%',

7? (%urs a #ay, seve! #ays a -ee. T(s a**%-s a!y user "% e


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Pu*ses = C(a!a, U#a#, e**% Peas

Cerea*s = R'e, Bas$a" R'e, :(ea", Ma8e, Sarba" R'e E!ergy =

Cru#e O*

OFFLINE TRADING ACCOUNT

T(e O32!e a''%u!" s "ra#!g a''%u!" "(r%ug( -('( %!e 'a! buy a!#

se** "(r%ug( (sL(er "e*e)(%!e %r by )ers%!a* vs" a" S(are(a! S(%). T(s

aL' s %r "(%se -(% are !%" '%$%r"ab*e -"( '%$)u"er a!# -a!" "% "ra#e.

O*!e AL' s "(e AL' %r "(e !ves"%rs -(% are !%" a$*ar -"( "(e

use % '%$)u"er.

T(e ALC %)e!!g '(arges Rs.? -('( !'*u#es Rs.; %r De$a"

a''%u!" a!# Rs. 1 %r "ra#!g a''%u!" 4O!e "$e5.

ONLINE TRADING ACCOUNT

ALC O)e!!g C(arges Rs.@ 4%!e"$e C(arge5.

F%r 1s"

ear De$a" ALC s Free, O! 7!#

ear AMC '(arge s a))*'ab*e.

Te u) -"( 17 ba!s "(r%ug( -('( %!e 'a! "ra!ser %r -"(#ra- (s

u!# %!*!e. :('( are as %**%-s

1. HDFC Ba! 7. IDBI Ba!

;. UTI Ba! ?. OBC Ba!

@. CITI Ba! . I!#usI!# Ba!

.U!%! Ba! % I!#a . yes ba!. Ba! % Pu!6ab 1. ICICI ba!

11. Ba! % I!#a 17. 'e!"ur%! ba!

INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD. Page ;1


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A!y %!e -(% (ave ALC e"(er % ab%ve ba!s "(ey 'a! use "(s a'*"y.

O"(er-se %!e (as "% $ae u!# "ra!ser %r -"(#ra- by '(e+ue.

T(s a''%u!" e!ab*es y%u "% buy a!# se** s(ares "(r%ug( %ur -ebs"e. %u

ge" ea"ures *e

a5 S"rea$!g +u%"es 4us!g "(e a))*e" base# sys"e$5

b5 Mu*")*e -a"'( *s"s

'5 I!"egra"e# Ba!!g, #e$a" a!# #g"a* '%!"ra'"s

#5 I!s"a!" 're#" a!# "ra!ser & !s"a!" %r#er e


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MARKET PROFILE:

T(s re)%r" a!a*y8es "(e I!#a! re"a* br%erage !#us"ry, "a!g !"%

a''%u!" "(e (ea*"( % "(e 'a)"a* $are"s a!# "(e !"e!s"y % '%$)e""%!

a$%!g "(e br%erage '%$)a!es. M'(ae* P%r"ers Fve F%r'es A!a*yss (as

bee! e$)*%ye# "% u!#ers"a!# !#us"ry a""ra'"ve!ess. T(e re)%r" '%vers

a** $)%r"a!" seg$e!"s % "(e !#us"ry a!# a*s% a!a*y8es "(e )reva*!g

$are" #y!a$'s.

T(e I!#a! re"a* br%erage !#us"ry '%!ss"s % '%$)a!es "(a" )r$ar*y

a'" as age!"s %r "(e buy!g a!# se**!g % se'ur"es 4e.g. s"%'s, s(ares,

a!# s$*ar !a!'a* !s"ru$e!"s5 %! a '%$$ss%! %r "ra!sa'"%! ee

bass.

I" (as "-% $a! !"er#e)e!#e!" seg$e!"s= Pr$ary $are" a!# "(e

Se'%!#ary $are".

Ev%*u"%! % "(e Re"a* Br%erage Mare"

I" e


34/122


S%$e % "(e $a! '(ara'"ers"'s % "(e br%erage !#us"ry !'*u#e gr%-"(

! e3br%!g, gr%-!g #erva"ves $are", #e'*!e ! br%erage ees e"'.

F%**%-!g are "(e s%$e '%$)a!es ! "(e re"a* br%erage !#us"res =

1. ICICI Se'ur"es 2"#. 4---.''#re'".'%$5

7. %"a Se'ur"es 2"#. 4---.%"ase'ur"es.'%$5

;. I!#abu**s F!a!'a* Serv'es 2$"e# 4---.!#abu**s.'%$5?. I!#a I!%*!e 4---.@)asa.'%$5

@. I2&FS !ves"$ar" 2$"e# 4---.!ves"s$ar"!#a.'%$5

. SSI 2"#. 4---.s(are(a!.'%$5

. M%"*a* Os-a* Se'ur"es 4---.$%"*a*%s-a*.'%$5

. F%r"s Se'ur"es 4Re*gare5 4---.%r"sse'ur"es.'%$5

. arvy 4---.arvy.'%$5

1. Ge%6" Se'ur"es 4---.ge%6".'%$5

11.HDFC Se'ur"es 4---.(#'se'.'%$517.Re*a!'e M%!ey 4---.re*a!'e$%!ey.'%$5

INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD. Page ;?
http://www.hdfcsec.com/http://www.hdfcsec.com/


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COMPARISON >ITH COMPETITORS:

INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD. Page ;@


36/122



Co*(a#%

Fs

SHAREKHA

N

LTD"

ICICI

SECURITIE

S

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STOCK

BROKING

INDIABULL

S

SECURITIE

S LTD"

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37/122


As r%$ "(e ab%ve gve! '(ar" -e 'a! s"u#y "(a" "(e ees '(arge# bu"

"(e S(are(a! s '%$)ara"ve*y *%- -"( "s '%$)e""%rs ! "(e $are".

S(are(a! )r%v#es au"% )ay !3)ay %u" a'*"y -('( $ea!s !ves"%r#% !%" (ave "% )ay %r "ra!serr!g (s s"%'s r%$ "ra#!g a''%u!" "%

(s res)e'"ve #e$a" a''%u!", " -** "se* -** be "ra!serre# as )er

!ves"%r/s !s"ru'"%!s -"(%u" a!y '(arge. :(*e e- %"(er )*ayers !

$are" are '(arg!g %r "(s a'*"y.

S(are(a! be*eves ! 'us"%$er3re!#*y "ra!sa'"%!s -('( gves

'us"%$er (ass*e ree e!vr%!$e!" %r "ra#!g, (e #% !%" (as "% -%rryab%u" %"(er '(arges "(a" 'a! be (##e! '(arges. O!e % "(e ey su''ess

a'"%r %r S(are(a! *$"e# s 0N% H##e! C(arges, "(ey are '(arge

%!*y -('( "(ey $e!"%!e# -(*e a''%u!" %)e!!g. O"(er g%ver!$e!"

'(arges -** !ves"%r -** )ay -('( s $a!#a"%ry.

S>OT ANALYSIS:INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD. Page ;


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Dur!g "(s "ra!!g a" S(are(a!, -e (a# '%$e "% !%- "(e

S"re!g"(s 9 :ea!esses 9 O))%r"u!"es 9 T(rea"s %r "(e '%$)a!y

a!# " s very useu* %r a '%$)a!y "% a!a*y8e "(e$. T(ere%re, "(eS:OT a!a*yss s )rese!"e# (ere a!# "(e sugges"%!s %r $a!"a!!g

s"re!g"(s a!# re$%v!g -ea!esses are e


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O((ortu#&t&s:

2arge )r$ary $are" "% s" as a b%% ru!!er %r "(e %"(er

'%$)a!es 6us" *e %"a se'ur"es *"#.

T(a" ru!s "(e b%%s % s(are (%*#!gs %r $a!y '%$)a!es

S*%)e % s"%' $are" "%-ar#s #e*very base# "ra!sa'"%!s.

2arge )%"e!"a* $are" %r #e*very a!# !"ra3#ay "ra!sa'"%!s.

O)e! !"eres" % "(e )e%)*e "% e!"er ! s"%' $are" %r !ves"!g.

A""ra'" "(e 'us"%$ers -(% are #ssa"se# -"( %"(er br%ers &

DPs.

A! !#re'" %))%r"u!"y ge!era"e# by "(e $are" r%$ "s

bu**s(!ess.

A!%"(er %))%r"u!"y %r S(are(a! *$"e# s "(a", "(ey 'a! ge"

su''ess ! )r%$%"!g e#u'a"%!a* )r%gra$$e -e** %r %!*!e

"ra#!g sys"e$ "(e! "(ey 'a! a""ra'" *arge )%%* % !ves"%rs a!#

"(a" -** $ae -%r % S(are(a! a*s% easy a!# $%re )a)er *ess

-%r 'a! be #%!e, -('( -** be '%s" sav!g ! #a*y bass.

T,rats:

De'reas!g ra"es % br%erage ! "(e $are".

I!'reas!g '%$)e""%! aga!s" %"(er br%ers & DPs.

P%%r $are"!g a'"v"es %r $a!g "(e '%$)a!y !%-! a$%!g

"(e 'us"%$er.

A "(rea" % *%%s!g '*e!"s %r a!y !# % -ea!ess % "(e

'%$)a!y.

I!#re'" "(rea" r%$ !s"ab*e s"%' $are", .e., *%-L!% )r%" %

S(are(a!/s '*e!"s -%u*# *ea# "(e$ "% g% %r %"(er br%erLDP.



40/122


INDIAN

CAPITAL

MARKETINSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD. Page ?


41/122


BACKGROUND:T(e se'ur"es $are" ! I!#a -"!esse# severa* )%*'y !"a"ves

s!'e "(e year 7, -('( ur"(er re!e# "(e $are" $'r%3

s"ru'"ure, $%#er!8e# %)era"%!s a!# br%a#e!e# !ves"$e!" '(%'es

%r "(e !ves"%rs. T(e rregu*ar"es ! "(e se'ur"es "ra!sa'"%! ! "(e

*as" +uar"er % "(e )rev%us !a!'a* year (as"e!e# "(e !"r%#u'"%!

a!# $)*e$e!"a"%! % severa* re%r$s. :(*e a Q%!" Par*a$e!"ary

C%$$""ee -as '%!s""u"e# "% g% !"% "(e rregu*ar"es a!#

$a!)u*a"%!s ! a** "(er ra$'a"%!s ! a** "ra!sa'"%!s re*a"!g "%

se'ur"es, #e's%!s -ere "ae! "% '%$)*e"e "(e )r%'ess %

#e$u"ua*8a"%! a!# '%r)%ra"sa"%! % s"%' e


42/122


Qa! 1; Regu*a"%ry )er$ss%!s %b"a!e# %r badla "ra#!g,

a $e'(a!s$ "% 'arry %r-ar# )%s"%!s.

7 Qa!

1

C%$)u"a"%! % BSE /se!s"ve/ !#e< '%$$e!'e#.

17 A)r

1

SEBI 'rea"e#.

17 F


43/122


717 Qu*

71

Ma6%r s"%'s $%ve# "% r%**!g se""*e$e!"> s"ar" %

s"%' %)"%!s $are".

A"er "(e ab%ve rev%*u"%! "(e R%**!g se""*e$e!" %! T@ bases -as

!"r%#u'e# ! res)e'" % $%s" a'"ve 7@1 se'ur"es r%$ Qu*y 7, 71.

R%**!g se""*e$e!" %! T; bass '%$$e!'e# %r a** *s"e# se'ur"es

r%$ A)r* 1, 77 a!# subse+ue!"*y %! T7 bass r%$ A)r* 1, 7;.

Tra#!g ! !#e< %)"%!s '%$$e!'e# ! Qu!e 71 a!# "ra#!g !

%)"%!s %! !#v#ua* se'ur"es '%$$e!'e# ! Qu*y 71. Fu"ures

'%!"ra'"s %! !#v#ua* s"%' -ere *au!'(e# ! N%ve$ber 71.Fu"ures a!# %)"%!s '%!"ra'"s %! ? !#v#ua* se'ur"es -ere $a#e

ava*ab*e r%$ Augus" 7;. I!"eres" ra"e u"ures '%!"ra'" -as

*au!'(e# r%$ Qu!e 7;. T(e year 7137 (as bee! +ue" eve!"u*

%r #eb" $are"s ! I!#a, -"( $)*e$e!"a"%! % severa* $)%r"a!"

#e's%!s *e se""!g u) % a '*ear!g '%r)%ra"%! %r g%ver!$e!"

se'ur"es, a !eg%"a"e# #ea*!g sys"e$ "% a'*"a"e "ra!s)are!"

e*e'"r%!' b##!g ! au'"%!s a!# se'%!#ary $are" "ra!sa'"%!s %!

a rea* "$e bases a! #e$a"era*8a"%! % #eb" !s"ru$e!"s. T(ese

#eve*%)$e!"s ! "(e se'ur"es $are", -('( su))%r" '%r)%ra"e

!"a"ves, !a!'e "(e e


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PRODUCTS0 PARTICIPANTS AND FUNCTIONS

Tra!ser % res%ur'es r%$ "(%se -"( #*e res%ur'es "% %"(ers -(%

(ave a )r%#u'"ve !ee# %r "(e$ s )er(a)s $%s" e'e!"*y a'(eve#

"(r%ug( "(e se'ur"es $are"s. Se'ur"es $are"s )r%v#e '(a!!e*s

%r rea**%'a"%! % sav!gs "% !ves"$e!"s a!# e!"re)re!eurs() a!#

"(ereby #e'%u)*e "(ese "-% a'"v"es.

Sav!gs are *!e# "% !ves"$e!"s by a vare"y % !"er$e#ares

"(r%ug( a ra!ge % '%$)*e< !a!'a* )r%#u'"s 'a**e# 0se'ur"es

-('( s #e!e# ! "(e Se'ur"es C%!"ra'"s 4Regu*a"%!5 A'", 1@ "%

!'*u#e s(ares, b%!#s, s'r)"s, s"%'s %r %"(er $are"ab*e se'ur"es

% *e !a"ure ! %r % a!y !'%r)%ra"e '%$)a!y %r b%#y '%r)%ra"e,

g%ver!$e!" se'ur"es, #erva"ves % se'ur"es, u!"s % '%**e'"ve

!ves"$e!" s'(e$e, !"eres" a!# rg("s ! se'ur"es, se'ur"y re'e)"

%r a!y %"(er !s"ru$e!"s s% #e'*are# by "(e 'e!"ra* g%ver!$e!".

T(e a$%u!" % u!#s su))*e# by "(e su))*er $ay !%" be "(e a$%u!"

!ee#e# by "(e user. S$*ar*y, "(e rs, *+u#"y a!# $a"ur"y

'(ara'"ers"'s % "(e se'ur"es ssue# by "(e ssuer $ay !%" $a"'(

)reere!'e % "(e su))*er. I! su'( 'ases, "(ey !'ur subs"a!"a*

sear'( '%s"s "% !# ea'( %"(er. Sear'( '%s"s are $!$8e# by "(e

!"er$e#ares -(% $a"'( a!# br!g "(e su))*ers a!# users % u!#s

"%ge"(er. T(ese !"er$e#ares $ay a'" as age!"s "% $a"'( "(e !ee#s

% users a!# su))*ers % u!#s %r a '%$$ss%!, (e*) su))*ers a!#INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD. Page ??


45/122


users ! 'rea"%! a!# sa*e % se'ur"es %r a ee %r buy "(e se'ur"es

ssue# by users a!# ! "ur!, se** "(er %-! se'ur"es "% su))*ers "%

b%% )r%". A *arge vare"y a!# !u$ber % !"er$e#ares )r%v#e

!"er$e#a"%! serv'es ! "(e I!#a! se'ur"es $are" as $ay besee! r%$ "ab*e.

T(e se'ur"es $are", "(us, (as "(ree 'a"eg%res % )ar"')a!"s,

!a$e*y "(e ssuers % se'ur"es, !ves"%rs ! se'ur"es a!# "(e

!"er$e#ares a!# "-% 'a"eg%res % )r%#u'"s, !a$e*y "(e serv'es %

"(e !"er$e#ares, "(e se'ur"es, !'*u#!g #erva"ves. T(e ssuers

a!# !ves"%rs are "(e '%!su$ers % serv'es re!#ere# by "(e

!"er$e#ares -(*e "(e !ves"%rs are '%!su$ers % se'ur"es ssue#

by ssuer. I! )ursu" % )r%v#!g a )r%#u'" "% $ee" "(e !ee#s % ea'(

!ves"%rs a!# ssuer, "(e !"er$e#ares '(ur! %u" $%re a!# $%re

'%$)*'a"e# )r%#u'"s. T(ey e#u'a"e a!# gu#e "(e$ ! "(er #ea*!gs

a!# br!g "(e$ "%ge"(er. T(%se -(% re'eve u!#s ! e


46/122

'!P '("$&H )**+

(0.=0%.=(%

4.0% 4.50% 4.40% 4.80% =.)0%

8.=0%

0.00%

8.00%

4.00%

.00%

).00%

(0.00%

(8.00%

+*I43

I46I3

5*3IL346

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4


SCENARIO IN CONTE=T >ITH INDIAN ECONOMY:

A *%g'a* s"ar"!g )%!" ! assess!g a!y e+u"y $are" s "% a!a*y8e

"(e e'%!%$' a'"%rs "(a" ae'" s"%' )r'es. U!#ers"a!#!g "(e 'urre!"a!# u"ure s"a"e % "(e e'%!%$y s "(e rs" s"e) ! u!#ers"a!#!g -(a" s

(a))e!!g a!# -(a" s *e*y "% (a))e! "% "(e $are".

A bas' $easure % "(e e'%!%$y s Gr%ss D%$es"' Pr%#u'" 4GDP5. I"

s a $easure % "(e e'%!%$' (ea*"( a!# s"re!g"( % "(e e'%!%$y.

I!ves"%rs are '%!'er!e# ab%u" -(e"(er "(e e'%!%$y s e


47/122

Global Growth in Working Age

Population (in mn)375

80 7555 45 42

21 18

0

50

100

150

200

250

300

350

400

World

India

Africa

China

South

Asia

Latin

America

West

Asia US

A

Increasing Consuming/Producing

Age Group

=)0 =%5

5) )((

4

8

0

200

400

00

800

1000

1200

1400

2001 201

0!14 15!5" 0#A$o%e


T(e av%rab*e #e$%gra)('s % I!#a! e'%!%$y ! "er$s % -%r!g

age % )%)u*a"%!, ! "er$s % '%!su$!gL )r%#u'!g age gr%u) as -e** as

"(e gr%-"( % $##*e !'%$e *eve* -** s"re!g"(e! "(e e+u"y $are".

S%ur'e= MSD:

INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD. Page ?


48/122

7&1 &"

2

8& 8&1

14&313&3

10&4

3&4

18&4

14&5

15&"

0

2

4

8

10

12

14

1

18

20

'oads

'ail(a)s

*orts+Air,orts

*o(er

-il#

.as

/elecom

2001!04 2004!07


S%ur'e= BRIC/s Re)%r" by G%*#$a!! Sa'(s

REVOLUTION OF INDIAN ECONOMY

T(ere (as bee! a "re$e!#%us "ra!s%r$a"%! % "(e I!#a! E'%!%$y

-"( "(e g%ver!$e!" "a!g a (%*s"' ve- % "(e a'"%rs $)a'"!g

gr%-"(, %reg! !ves"$e!" a!# !"egra"%! % I!#a -"( "(e :%r*#E'%!%$y. T(e !ras"ru'"ure s)e!#!g (as bee! %! a (g(.

COMPARISON OF INFRASTRUCTURE SPENDING OF LAST SI= YEARIN @ BN";

S%ur'e= Merr** 2y!'(

G%ver!$e!" "%% (as *!e# u) $a6%r !ras"ru'"ure )r%6e'"s *e "(e

g%*#e! +ua#r*a"era*, !e- )%-er )*a!"s, ar)%r"s, )%r"s e"'. T(e "%"a



49/122


!ves"$e!" ! "(e '%u!"ry s "% !'rease r%$ 17 b**%! 4Rs. @, 7,

'r%res5 ! 7? "% 7 b**%! 4Rs. , 1@, 7 'r%res5 by 7.

I!ves"%rs re*y (eav*y %! "(e !a!'a* s"a"e$e!"s % a '%r)%ra"%!,

-('( )r%v#e "(e $a6%r !a!'a* #a"a ab%u" '%$)a!es. T(e ba*a!'e

s(ee" % "(e '%$)a!y s (e!'e a bas' s"a"e$e!" ab%u" "(e !a!'a*

(ea*"(. I -e a!a*y8e "(e '%r)%ra"e ba*a!'e s(ee"s %ver "(e years, -e !#

"(a" I!#a! '%r)%ra"e (ave $%re s"r%!ger ba*a!'e s(ee" a!# "(s ue**!g

"(er aggress%! as "(ey a$ "% !'rease "(er '%r)%ra"e a'+us"%!s.

:"( "(e re'e!" bu#ge" "(ere (as bee! s%$e $%re ra"%!a*8a"%! %

'%r)%ra"e "a< ra"e s"ru'"ure. :"( "(e !"r%#u'"%! % ur"(er "a< re%r$s

re*a"e# "% e+u"y $are", "(e #%$es"' !ves"%rs '%!"!ue "% *%% a"

e+u"es as a av%rab*e !ves"$e!" ave!ue, b%"( ! "er$s % ge!era"!g

'%!ss"e!" re"ur!s a!# sav!g "a


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PROBLEMS IN INDIAN CAPITAL MARKET

T(e I!#a! s"%' $are" s suer!g r%$ $a!y )r%b*e$s. S%$e %

"(e $)%r"a!" %!es are "(e %**%-!g=

Lac- o/ K#o2$)6 ' T#)#c%

I! I!#a, (av!g very *arge a$%u!" % !ves"%rs bu" $a!*y %r $%s"*y

"(e !ves"%rs ee) a-ay r%$ "(e 'a)"a* $are" #ue "% *a' % !%-*e#ge

% 'a)"a* $are", ear % "a!g rs. T(us, I!#a! s"%' $are" suer!g

r%$ $a!y *$"a"%!s=

A.s#c o/ G#u I#8stors

As " s, s)e'u*a"ve a'"v"es %u")*ay "(e ge!u!e "ra#!g a'"v"es.

ery !eg*gb*e ra'"%! % "ra!sa'"%!s re)rese!"s )ur'(ases %r sa*es by

ge!u!e !ves"%rs. M%s" % "(e "ra!sa'"%! s 'arry %r-ar# "ra!sa'"%!s

-"( a s)e'u*a"ve $%"ve % #erv!g be!e" r%$ s(%r" "er$ )r'e

*u'"ua"%!s. S)e'u*a"%rs are %!*y !"eres"e# ! "a!g a be" %! "(e s"%'

a!# )r%"!g r%$ "s )r'e s-!gs. A*$%s" @ )er 'e!" % "(e "%"a* v%*u$e

s '%!"rbu"e# by s)e'u*a"%rs.

Prs#c o/ Pr&c1R&66

T(ere s a "e!#e!'y a$%!g '%$)a!es ssu!g se'ur"es "% ar"'a**y

)us( u) "(e )r'es be%re "(e ssue % se'ur"es. T(s s ge!era**y #%!e by

buy!g a!# se**!g se'ur"es by a e- gr%u)s % )ers%!s a$%!g

"(e$se*ves a!# "(ereby )us(!g "(e )r'es u). T(ere s a s"r%!g bu*

$%ve$e!" ! "(e $are".INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD. Page @


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Pr8a$#c o/ I#s&)r Tra)

I!s#er "ra#!g (as bee! a''e)"e# as a r%u"!e )ra'"'e ! I!#a.

I!s#ers are "(%se -(% (ave a''ess "% u!)ub*s(e# )r'e se!s"ve

!%r$a"%! by vr"ue % "(er )%s"%! ! "(e '%$)a!y a!# -(% use su'(

!%r$a"%! ! "(er bes" a#va!"age. He!'e " s a! u!#esrab*e a'"v"y.

H&6, Vo$at&$&t% o/ Stoc- Mar-t

T(e I!#a! s"%' $are" s sub6e'" "% (g( v%*a"*"y ! re'e!" years.

T(e A** I!#a I!#e< !u$ber % se'ur"y )r'es -as s"ea#y a" be"-ee!

"(e )er%# 1 a!# 7. H%-ever, " -as sub6e'" "% (eavy *u'"ua"%!s

a"er-ar#s. T(s (g( ra"e % v%*a"*"y s !%" '%!#u've %r "(e s$%%"(

u!'"%!!g % "(e s"%' $are".

Do*a#c o/ Fa#c&a$ I#st&tut&o#s

Fe- !a!'a* !s""u"%!s *e "(e Mu"ua* Fu!#s, 2IC a!# GIC #%$!a"e

"(e I!#a! s"%' $are" s'e!e. He!'e, "(e I!#a! s"%' $are" s

sg!'a!"*y !*ue!'e# by "(e a'"%!s % "(ese e- !s""u"%!s. I" a'"ua**y

re#u'es "(e *eve* % '%$)e""%! ! "(e s"%' $are" -('( s !%" a (ea*"(y

"re!# %r "(e gr%-"( % a!y s"%' $are".

FIIs Co#tro$ o8r t, Mar-t

2e "(e !a!'a* !s""u"%!s "(e FIIs a*s% *ea# "(e I!#a! s"%' $are". As

)er "(e )r%6e'"%! I!#a -** be'%$e %!e % "(e *arges" e'%!%$y % "(e

-%r*# base# %! "s s"r%!g e'%!%$' a!# #e$%gra)(' a'"%r. As a resu*" %

"(s FIIs a!# %"(er !ves"%rs are a""ra'"e# "%-ar#s I!#a. As a resu*" "(e FIIs

INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD. Page @1


52/122


"a!g I!#a/s $are" a" a !e- (g(, bu" " s very $)%r"a!" "% !%- "(a"

(%- *%!g "(ey are !ves"!g ! I!#a be'ause % a su##e! '(a!ge "(e

I!#a! $are" '%**a)se#.

SCENARIO IN CONTE=T >ITH GLOBALECONOMY:

Re%r$s ! "(e se'ur"es $are", )ar"'u*ar*y "(e es"ab*s($e!" a!#

e$)%-er$e!" % SEBI, $are" #e"er$!e# a**%'a"%! % res%ur'es,

s'ree! base# !a"%! -#e "ra#!g, #e$a"era*8a"%! a!# e*e'"r%!'

"ra!ser % se'ur"es, r%**!g se""*e$e!" a!# ba! %! #eerra* )r%#u'"s,s%)(s"'a"e# rs $a!age$e!" a!# #erva"ves % "ra#!g a!#

se""*e$e!". I!#a! $are" s !%- '%$)arab*e "% $a!y #eve*%)e#

$are"s ! "er$s % a !u$ber % +ua*"a"ve )ara$e"ers.

T(e !e


53/122

C"MPA(IS"# LIS&! C"MPA#IS I#

P(C#&A'

=0

)

(04(=

=

4(

:S3

:K

B3P3

;,#!3A

SI;3P9#,

*9;K9;

+*I3

I6I3


Mare"

Ca). 4$!5

1,;@11?

,

7,;;,7

?,@?,;

1,?;7,1

1,? , ;;,

;

7,1

Mare"

Ca).Ra"%

71 7;7 111 7 ;@ ; @

Tur!%ver

4$!5

1,@?,1

1,;,@

1,?,77

1,;@,?

1

,@ 7??, ;,

?,;

Tur!%ver

Ra"% 45

17? @7 @; 1 @1 1;?.7 7?@

As $ay be see! r%$ "ab*e e


54/122

C"MPA(IS"# "F &,(#"-( (A&I"

84%

(%

)%(%

4%

5%

)%

(% :S3

:K

B3P3

;,#!3A

SI;3P9#,

*9; K9;

+*I3

I6I3


T(e "ab*e s(%-s y%u "(e !"er!a"%!a* '%$)ars%! ! var%us -ays, "(e sa$e

"(!g are s(%-! ! be*%- '(ar"s ! )er'e!"age )%!" % ve-, "(e rs" '(ar" s(%-s

"(e r%u!# ab%u" ?1 % *s"e# '%$)a!es ! "(e I!#a -('( s grea"er "(a! USA.

T(e !e


55/122


INDIAN STOCK MARKET AND GLOBALI+ATION

I!#a! S"%' $are" (as -"!esse# #ras"' '(a!ges #ur!g "(e )as"

#e'a#e #ue "% "(e br%a# s"%' $are" *bera*8a"%! $easures.

De$a"era*8a"%! % s(ares a!# se""!g u) '*ear!g (%uses (as

vr"ua**y e*$!a"e# "(e rss !v%*ve# ! "ra#!g. S$*ar*y ra)#

s"r#es -ere $a#e ! se""*e$e!" )r%'e#ures, '%r)%ra"e g%ver!a!'e

s"a!#ar#s, !"r%#u'"%! % #erva"ve )r%#u'"s e"'.

GLOBALI+ATION

T(e I!#a! S"%' Mare" "(%ug( %!e % "(e %*#es" ! Asa be!g !

%)era"%! s!'e 1@, re$a!e# *arge*y %u"s#e "(e g*%ba* !"egra"%!

)r%'ess u!"* "(e *a"e 1s. A !u$ber % #eve*%)!g '%u!"res !

'%!'er" -"( "(e I!"er!a"%!a* F!a!'e C%r)%ra"%! a!# "(e :%r*#

Ba! "%% s"e)s ! "(e 1s "% es"ab*s( a!# rev"a*8e "(er s"%'

$are"s as a! ee'"ve -ay % $%b*8a"%! a!# a**%'a"%! % !a!'e.

I! *!e -"( "(e g*%ba* "re!#, re%r$ % "(e I!#a! S"%' Mare" bega!

-"( "(e es"ab*s($e!" % Se'ur"es a!# E


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Na"%!a* Se'ur"es C*ear!g C%r)%ra"%! ! A)r* 1 a!# Na"%!a*

Se'ur"es De)%s"%ry ! N%ve$ber 1, a s'ree! base#,

a!%!y$%us, %r#er #rve! %!*!e #e$a"era*8e# "ra#!g (as bee! "(e

%r#er % "(e #ay '%u)*e# -"( $)r%ve# rs $a!age$e!" )ra'"'es%r '*ear!g a!# se""*e$e!".

T(e )r%'ess % !"egra"%! re'eve# a $a6%r $)e"us -(e! "(e I!#a!

'%r)%ra"e -as a**%-e# "% g% g*%ba* -"( GDR 4G*%ba* De)%s"%ry

Re'e)"5 LADR4A$er'a! De)%s"%ry Re'e)"5 ssues. S"ar"!g -"(

$a#e! ssue % I!%sys ! Mar'( 1, ADR ssues (as e$erge# as

"(e s"ar a""ra'"%! #ue "% "s (g(er g*%ba* vsb*"y. T** #a"e, ar%u!#

17 I!#a! '%$)a!es (ave "ae! a#va!"age % "(e US $are" a!#

'%$)a!es (ave 'a)"ure# "(e g*%ba* $are". I! Mar'( 71, "-%3-ay

u!gb*"y %r I!#a! GDRLADRs -as !"r%#u'e# -(ereby '%!ver"e#

*%'a* s(ares '%u*# be re'%!ver"e# !"% GDRLADR sub6e'" "% se'"%ra*

'a)s.

GLOBAL INVESTMENT

I!#a e$bare# %! e'%!%$' re%r$s "% "ra!s%r$ "(e '%!"r%**e#

e'%!%$y !"% $are" #rve! %!e. T(s !'*u#e# "(e !a!'a

*bera*8a"%! s"ra"eges *e #s$a!"*!g % 'a)"a* '%!"r%*s, re%r$s !

"ra#e a!# !ves"$e!" )%*'es a!# s% %! "% !"egra"e "(e I!#a!

F!a!'a* Mare"s -"( "(e g*%ba* !a!'a* $are"s. A** "(ese re%r$s

%)e!e# "(e *%%#ga"es "% %reg! 'a)"a* *%-s !"% "(e '%u!"ry. T(e

"%"a* !e" 'a)"a* *%-s (ave rse! "% US 17.1 b**%! ! 7@3 r%$

US .1 b**%! ! 131. T(e 'r%ss b%r#er *%-s are averag!g

ar%u!# US 1 b**%! every year 'urre!"*y. 2e e*se-(ere ! "(eINSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD. Page @


57/122


g*%be, "(e !a"ure % 'a)"a* *%-s (as '%$e "% '%!s""u"e a (g(er

)er'e!"age % "(e "%"a* 'a)"a* *%-s. T(e ra"% % !%!3#eb" 'rea"!g

!*%-s "% #eb" 'rea"!g !*%-s -as 1.@ "% ;.; ! 131 as aga!s"

??. "% 3. ! 7@3.

COMPOSITION OF CAPITAL FLO>S TO INDIA

4US M**%!5

Yar

Tota$ #t

Ca(&ta$ /$o2

FDI

F$o2

as a

5 o/

TCF

Port/o$&o

E7u&t%

/$o2s

As a 5 o/

TCF

D.t

Crat

6

F$o2s

as a

5 o/TCF

Ot,rs

As a 5 o/

TCF

13

1@ 1.? .1 ;.; [email protected]

13

1??? 7. 7. 7;.1 7.7

73

111 ?.7 7. @.? 37.7

73

17; ;. . 3. 7.

S%ur'e= Reserve Ba! % I!#a A!!ua* Re)%r" 73

INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD. Page @


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T(e )%r"%*% *%-s (ave bee! %!e % "(e $a6%r %r'es "(a" (ave

'(a!ge# "(e +ua!"u$ a!# !a"ure % !"er!a"%!a* 'a)"a* *%-s "%

I!#a. P%r"%*% *%-s !'*u#e "(e !ves"$e!" ! ADRs LGDRs a!#

%s(%re u!#s ! a##"%! "% !ves"$e!" by F%reg! I!s""u"%!a

I!ves"%rs 4FIIs5. F%reg! )%r"%*% !ves"$e!"s (ave bee! a**%-e# !

I!#a %! "(e bass % "(e re'%$$e!#a"%!s % "(e Naras$(a$

'%$$""ee.

Pr%r "% 17, %!*y !%!3res#e!" I!#a!s 4NRIs5 a!# Overseas

C%r)%ra"e B%#es 4OCBs5 -ere a**%-e# "% u!#er"ae "(e )%r"%*%

!ves"$e!" ! I!#a. O!*y %! Se)"e$ber 1?, 17 "(e G%ver!$e!" %

I!#a ssue# gu#e*!es %! FII !ves"$e!"s ! I!#a -('( -as %**%-e#

by a !%"'a"%! by Se'ur"es a!# E


59/122


'*%se "% US 1.7 b**%! )er year %! a! average s "(e s(are % FIIs.

T(e 'u$u*a"ve FII !ves"$e!" ! I!#a s ar%u!# US 1 b**%! a!#

"(e FII !ves"$e!" ! I!#a a''%u!" %r %ver 1 )er'e!" % "(e "%"a*

$are" 'a)"a*8a"%! % "(e I!#a! S"%' $are".

FII INVESTMENT IN INDIA

4US $**%!5

Yar

Tota$

Port/o$&o

/$o2s

FII

I#8st*

#t

GDRs

ADRs

O//s,

or

/u#)s

173

;7?? 1 7? ;

13

;7 71;@ 17;

73 7 1? ;1 7



60/122


1

713

7771 1@@ ? ;

73

; 7

S%ur'e= Reserve Ba! % I!#a A!!ua* Re)%r" 73

T(e !ves"$e!"s by FIIs (ave bee! regs"er!g a s"ea#y gr%-"( s!'e

"(e %)e!!g % "(e I!#a! 'a)"a* $are"s ! Se)"e$ber 17. T(a"

"(s "re!# (as '%$e "% s"ay s ev#e!" r%$ "(e a'" "(a" "(e FIIs

!ves"$e!"s a$%u!"e# "% %ver b**%! %r "(e )er%# % 'a*e!#ar

7. T(e be*%- "ab*e ur"(er base# %! "(e !ves"$e!" ! "%"a*

)%r"%*% !ves"$e!" !*%-s (ave a*-ays (ave bee! "(e !'rease.



61/122


TRENDS IN FII INVESTMENT

Pr&o) Gross

Purc,a

ss

Rs"cror

;

Gross

Sa$s

Rs"cro

r;

Nt

I#8st*#t

Rs"cror

;

Nt

I#8st*#t

US

@*&$$&o#;

Cu*u$at&8

Nt

I#8st*#t

US

@*&$$&o#;

1? ;1 7;@ ? 1@7 ;1

1 1@@@? @@ 7?;7 ;?

1 111@ 1 31@? 3;

7 ?@1 ?11 ;? 71 1;;

7? ? ??;1 7 @7 1@?

7 1??@ ? ?@@ ? 7@@?

S%ur'e= SEBI A!!ua* Re)%r" 73

T(e FIIs (%*# .17 )er 'e!" % "(e "%"a* %u"s"a!#!g s(ares % "(e ?

'%$)a!es s"u#e# as % Se)"e$ber 7, e$erg!g as "(e bgges"

!s""u"%!a* !ves"%r, a(ea# % "(e $u"ua* u!#s, #%$es"' !a!'a*

!s""u"%!s a!# "(e )rva"e '%r)%ra"e b%#es. I! a! %vera** ra!!g

"(ey %''u)y "(e "(r# )%s"%! a"er "(e )r%$%"ers a!# "(e I!#a!

)ub*' (%*#!g (g(er *eve*s % !ves"$e!" "(a! FIIs.



62/122


SHARE HOLDING PATTERN

Cat6or% Tota$ S,ar

Outsta#)

Rs";

5 o/

S,ar

H$)

Pr%$%"ers 77@@1 ?7.7

Mu"ua* Fu!#s 17;@? .1

D%$es"' F!a!'a*

I!s""u"%!

7@?;7; 1@.

FIIs ;71 1.

Prva"e C%r)%ra"e

B%#es

@?7 ;.?

I!#a! Pub*' 1@7@17 .;

NRIsLOCBs ??7; .7

O"(ers ;?@1 7.1?

T%"a* 17?1??1 1

T(e ab%ve "ab*e s(%-s "(e FIIs (%*#!g %ver "(e I!#a! se'ur"y

$are", -('( says "(a" FIIs are "(e %!e % "(e *arge !ves"%rs !

I!#a! se'ur"y $are". T(e FIIs (%*#!g s "(e "(r# (g(es" ! "(e

%vera** (%*#!g ! I!#a! se'ur"y $are".

ONE IN THREE FIRMS HAS FII STAKESINSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD. Page 7


63/122


FIIs (%*# s"aes ! a "(r# % a** *s"e# '%$)a!es ! I!#a. Da"a

regar#!g (%*#!g )a""er! *e# by 7,@ *s"e# '%$)a!es -"( "(e

B%$bay S"%' E


64/122


T(e FIIs (ave bee! "(e *arges" s(are(%*#er ! H%us!g Deve*%)$e!"

F!a!'e C%r)%ra"%! a!# %**%-e# by "(e %"(ers=

H%us!g Deve*%)$e!" F!a!'e C%r)%ra"%! ?.7 Sa"ya$ C%$)u"er Serv'es @;.

ICICI Ba! [email protected]?

SB&T I!"er!a"%!a* ?.;?

I!%sys Te'(!%*%ges ;.1

ee Te*e*$s ;.

T(e *s" % '%$)a!es ! -('( "(ey (ave a'+ure# subs"a!"a* s"aes

re'e!"*y !'*u#es Graba* A*% I$)e< 7.71, G%*#s"%!e Te*eserv'es 7,

ab(av Ge$s 1.1 a!# Saber% Orga!'s 1;., -('( (a# !% FII

)rese!'e a year ba'.



65/122


EFFICIENT

MARKETHYPOTHESIS



66/122


EFFICIENT MARKET HYPOTHESIS:A $are" s e'e!" -"( res)e'" "% a )ar"'u*ar se" % !%r$a"%! "

s $)%ssb*e "% $ae ab!%r$a* )r%"s 4%"(er "(a! by '(a!'e5 by us!g

"(s se" % !%r$a"%! "% %r$u*a"e buy!g a!# se**!g #e's%!s.

EMH (as bee! "(e sub6e'" % !"e!se #eba"e a$%!g a'a#e$'s a!#

!a!'a* )r%ess%!a*s. I" s a -%r*# ! -('( 415 a** !ves"%rs (ave '%s"*ess

a''ess "% 'urre!"*y ava*ab*e !%r$a"%! ab%u" "(e u"ure, 475 a** !ves"%rs

are 'a)ab*e a!a*ys"s, a!# 4;5 a** !ves"%rs )ay '*%se a""e!"%! "% $are"

)r'es a!# a#6us" "(er (%*#!gs a))r%)ra"e*y. I! su'( a $are" a

se'ur"y/s )r'e s a g%%# !#'a"%r % "s !ves"$e!" va*ue, ar va*ue %r

!"r!s' va*ue, -(ere! " s "(e )rese!" va*ue % "(e se'ur"y/s u"ure

)r%s)e'"s, as es"$a"e# by -e**3!%r$e# a!# s**u* a!a*ys"s -(% use "(e

!%r$a"%! "(a" s 'urre!"*y a" (a!#. T(a" s, a! e'e!" $are" s %!e !

-('( every se'ur"y/s )r'e e+ua*s "s !ves"$e!" va*ue a" a** "$es a!# s

a! u!base# es"$a"e % "s "rue va*ue.

C%!"rary "% )%)u*ar ve-, $are" e'e!'y #%es !%" re+ure "(a" "(e

$are" )r'e be e+ua* "% "(e "rue va*ue a" every )%!" % "$e. A** "

re+ures s "(a" err%rs ! "(e $are" )r'e be u!base#, "(a" s, )r'es 'a!



67/122


be grea"er "(a! %r *ess "(a! "rue va*ue as *%!g as "(ese #eva"%!s are

ra!#%$.

I! a! e'e!" $are" a se" % !%r$a"%! s u**y a!# $$e#a"e*y

re*e'"e# ! $are" )r'es. H%-ever, "(e g%a* (as a*-ays bee! "%

e!'%urage "(e es"ab*s($e!" % a**%'a"%!a**y e'e!" $are"s ! -('( a!

!ves"%r -"( "(e $%s" )r%$s!g !ves"$e!" %))%r"u!"es (as a''ess "%

"(e !ee#e# u!#s. H%-ever, ! %r#er %r $are"s "% be a**%'a"%!a**ye'e!", "(ey !ee# "% be b%"( !"er!a**y a!# e


68/122


EMH ev%*ve# ! "(e ear*y 1s r%$ "(e P(D #sser"a"%! % Euge!e

Fa$a. Fa$a )ersuasve*y $a#e "(e argu$e!" "(a" ! a! a'"ve $are"

"(a" !'*u#es $a!y -e**3!%r$e# a!# !"e**ge!" !ves"%rs, se'ur"es -**

be a))r%)ra"e*y )r'e# a!# re*e'" a** ava*ab*e !%r$a"%!. I a $are" s

e'e!", -(ere *arge !u$ber % ra"%!a*, )r%" $a


69/122


T,r I*(orta#t C$ass&/&cat&o#s o/ EMH

4a5 >a- For*:

:ea F%r$ EMH s"a"es "(a" )rev%us )r'es % se'ur"es %r (s"%r'a*

#a"a are use# "% $ae buy!g a!# se**!g #e's%!s. T(e sg!'a!"

'%!'*us%! #erve# r%$ -ea3%r$ (y)%"(ess s "(a" )as" ra"es % re"ur!

a!# a!y %"(er se'ur"yL $are" !%r$a"%! s(%u*# (ave !% re*a"%!s()

-"( u"ure s"%' )r'es %r u"ure ra"es % re"ur!. I! %"(er -%r#s, Te'(!'a*A!a*yss s % !% use.

Ear*y "es"s % -ea %r$ $are" e'e!'y a*e# "% !# a!y ev#e!'e

"(a" ab!%r$a* )r%"s '%u*# be ear!e# "ra#!g %! !%r$a"%! re*a"e# "%

)as" )r'es. M%re re'e!" s"u#es, (%-ever, (ave !#'a"e# "(a" !ves"%rs

$ay u!#er rea'" "% 'urre!" "y)es % !%r$a"%! ! "(e s(%r" "er$, bu"

%verrea'" ! "(e *%!g "er$, #rv!g se'ur"y )r'es a-ay r%$ "(s

!ves"$e!" va*ues. As a resu*", " $ay be )%ssb*e "% ear! ab!%r$a* )r%"s

by buy!g e"(er se'ur"es "(a" (ave re'e!"*y rse! ! )r'e %r "(%se "(a"

(ave a**e! ! )r'e %ver a *%!ger "$e )er%#. T(ese "-% s"ra"eges are

!%-! as $%$e!"u$/ a!# '%!"rara!s/ s"ra"eges res)e'"ve*y.

4b5 S*& Stro#6 For*:



70/122


Se$ s"r%!g %r$ EMH s"a"es "(a" s"%' )r'es u**y re*e'" a** )ub*'*y

ava*ab*e !%r$a"%! a" "s bes" a!# +u'es". Usua**y, -(e! "a*e# ab%u"

e'e!" $are"s, se$ s"r%!g %r$ % e'e!" $are"s s $ea!", be'ause

% "(e s"r'" *a-s g%ver!!g "(e use % !s#er !%r$a"%! 4a %r$ %)rva"e !%r$a"%!5 "% $ae buy!g a!# se**!g #e's%!s, as "(a" !v%*ves

res"r'"!g "(e a!a*yss "% "(e )ub*'*y ava*ab*e !%r$a"%! "(a" a!a*ys"s

use ! $a!g re'%$$e!#a"%!s. H%-ever, )ub*' !%r$a"%! a*s%

!'*u#es a** !%!3$are" !%r$a"%! su'( as !e-s ab%u" "(e !#us"ry %r

var%us e'%!%$es, "(e 'urre!" )%*"'a* s"a"e abr%a#, e"'.

T(e $)*'a"%! % se$ s"r%!g %r$ EMH s "(a" !ves"%rs s(%u*# !%"be ab*e "% #erve ab%ve average ra"es % re"ur! r%$ )ub*' !%r$a"%!. I!

%"(er -%r#s, u!#a$e!"a* a!a*yss s % !% use.

A !u$ber % "es"s (ave bee! '%!#u'"e# "% very "(e se$ s"r%!g

%r$ % EMH -"( "(e $a6%r"y % "es"s )r%v#!g $


71/122


c; Stro#6 For*:

S"r%!g %r$ EMH sugges"s "(a" a** !%r$a"%!, b%"( )ub*' a!#

)rva"e (as bee! #s'%u!"e# ! "(e e'e!" $are"s, -(ere " -%u*# be$)%ssb*e "% ear! ab!%r$a* )r%"s 4%"(er "(a! by '(a!'e5 by us!g

!%r$a"%! -(a"s%ever. I" e!'%$)asses b%"( -ea %r$ a!# se$ s"r%!g

%r$ a!# $)*es "(a" !% %))%r"u!"es s(%u*# e


72/122




73/122

S"r%!g F%r$= A** Pub*' &

Prva"e I!%r$a"%!

Se$ S"r%!g= A** )ub*'

I!%r$a"%!

:ea

F%r$=Pas"

Pr'es


I#/or*at&o# a#) t, L8$s o/ Mar-t E//&cc%

Scur&t% Pr&c C,a#6s ar Ra#)o*

Ne-, $ea!!g a Sur)rse. A!y"(!g "(a" s !%" a sur)rse s

)re#'"ab*e a!# s(%u*# (ave bee! a!"')a"e#> (e!'e " s %*# !%r$a"%!.

A se'ur"y/s )r'e s(%u*# $%ve u)-ar# by a! a$%u!" "(a" )r%v#es areas%!ab*e re"ur! %! 'a)"a*, %r #v#e!# )ay$e!"s, bu" a!y"(!g ab%ve %r

be*%- su'( a! a$%u!" -%u*#, ! a! e'e!" $are", be u!)re#'"ab*e.

:(a" (a))e!s -(e! !e- !%r$a"%! arrves, su'( as a! a!!%u!'e$e!"

"(a" a '%$)a!y/s ear!!gs (ave e


74/122


Pr'e '(a!ges are ra!#%$ ! a )ere'"*y e'e!" $are", bu" "(s

ra!#%$!ess #%es !%" $ea! "(a" )r'es are rra"%!a*. As a *%- %

!%r$a"%! arrves ra!#%$*y, '(a!ges ! )r'es "(a" %''ur as a

'%!se+ue!'e % "(a" *%- -** see$ ra!#%$, be!g s%$e"$es )%s"ve a!#s%$e"$es !ega"ve. H%-ever, )r'e '(a!ges are s$)*y "(e resu*" %

!ves"%rs/ reassess!g a se'ur"y/s )r%s)e'"s a!# a#6us"!g "(er buy!g

a!# se**!g a))r%)ra"e*y. He!'e, )r'e '(a!ges are ra!#%$ bu" ra"%!a*.

I! a #eve*%)e# a!# ree $are", $a6%r #s)ar"es be"-ee! )r'e a!#

!ves"$e!" va*ue are !%"e# by a*er" a!a*ys"s -(% see "% "ae a#va!"age

% "(er #s'%veres. Se'ur"es )r'e# be*%- !ves"$e!" va*ue !%-! as

u!#er )r'e# %r u!#erva*ue# se'ur"es -** be )ur'(ase#, 'rea"!g

)ressure %r )r'e !'reases 'ause# by "(e !'rease# #e$a!# "% buy.

Se'ur"es )r'e# ab%ve !ves"$e!" va*ue, !%-! as %ver)r'e# %r

%verva*ue# se'ur"es -** be s%*#, 'rea"!g )ressure %r )r'e #e'reases

'ause# by "(e !'rease# su))*y "% se**. As !ves"%rs see "% "ae

a#va!"age % %))%r"u!"es 'rea"e# by "e$)%rary !e'e!'es, "(e

!e'e!'es are re#u'e#, a!# "(e *ess a*er" a!# *ess !%r$e# (ave a *ess

'(a!'e "% %b"a! *arge ab!%r$a* )r%"s.



75/122


TESTING THE EMH

T% #e"er$!e $are"s a'"ua**y are )ere'"*y e'e!", reas%!ab*y

e'e!" %r !%" e'e!" a" a**, "(ere are $u*""u#e % $e"(%#%*%ges

ava*ab*e, % -('( %**%-!g "(ree s"a!# %u"=3

A; E8#t Stu)&s

Eve!" s"u#es 'a! be )er%r$e# "% #e"er$!e (%- as" se'ur"y )r'es

a'"ua**y rea'" "% "(e re*ease % !%r$a"%!. As a! e


76/122


N%"e "(a" ! b%"( "(e 'ases "(e (%r8%!"a* a


77/122

T V 11"( Qu*y, 711;7@Pr&c

Rs"

TV 1"( Qu*y, 7@?@@@Pr&c

Rs"


Fgure31.7


T&*F&6ur ": Arr&8a$ o/ Goo) N2s

a.out acc

T&*F&6ur "!: Arr&8a$ o/ Ba) N2s

a.out >IPRO


78/122


B; Loo- /or Pattr#s

A se'%!# $e"(%# "% "es" %r $are" e'e!'y s "% !ves"ga"e

-(e"(er "(ere are a!y )a""er!s ! se'ur"y )r'e $%ve$e!"s a""rbu"ab*e

"% s%$e"(!g %"(er "(a! -(a" %!e -%u*# e


79/122


T(e "(r# a))r%a'( %r "es"!g $are" e'e!'y s "% e


80/122


RESEARCH

ANALYSIS

1AUTOMOBIL

E INDUSTRY

INDIAN AUTOMOBILE INDUSTRYINSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD. Page


81/122


T(e I!#a! au"%$%"ve !#us"ry (as bee! -"!ess!g #y!a$' gr%-"(

%ver "(e years.

T(e I!#a! "-%3-(ee*er I!#us"ry s %!e % "(e *arges" ! "(e -%r*#,

a!# s e


82/122

4&3

5&35&7

&7 7&1 7&1

7&2 7&3 7&4

0

1

2

3

4

5

7

8

China

0e1ico

2orea

/i(an 3a,

an

4on56on5

.erman) Ind

ia USA

Sin5a,

ore

>= 0.04 (= 80

=) 4( 5

1= )=

=15

>50

0

50

(00

(50

800

850

=00=50

400

B3P3

4

,$rs Mar-t0 O# o/ t, Lar6st t, >or$) a#) St&$$

Gro2



85/122


I!#a re)rese!"s %!e % "(e *arges" "-%3-(ee*er $are"s ! "(e -%r*#,

-"( a! es"$a"e# s8e % @.? $**%! u!"s a year. T-%3-(ee*ers are use#

e,$r Mar-t

4A)r* 7 3 Mar'( 75

S%ur'e= SIAM



86/122


BAJAJ AUTO

Co*(a#% Dscr&(t&o#Ba6a6 Au"% s "(e se'%!# *arges" "-% -(ee*er $a!ua'"urer ! I!#a.

I"s )r%#u'" )%r"%*% !'*u#es s'%%"ers, $%)e#s, $%"%r'y'*es a!# "(ree

-(ee*ers. A! ers"-(*e s'%%"er '%$)a!y, Ba6a6 Au"% (as re!ve!"e# "se*

by !!%va"e "s )r%#u'" )%r"%*% "% be'%$e "(e se'%!# *arges" $%"%r'y'*e

$a!ua'"urer ! I!#a. :"( "(e %)e!!g u) % "(e !sura!'e se'"%r, "(e

'%$)a!y (as e!"ere# !"% 6%!" ve!"ure agree$e!"s -"( A**a!8 AG,

Ger$a!y.

K% I#8st*#t Ar6u*#tsT(e '%$)a!y (as sg!'a!"*y !'rease# "s $are" s(are ! "(e

$%"%r'y'*e seg$e!" by ;b) ! F. :"( a s"r%!g )%r"%*% %

$%"%r'y'*es, -e be*eve Ba6a6 Au"% -** '%!"!ue "% be!e" r%$ "(e

v%*u$e gr%-"( ! "(e $%"%r'y'*e !#us"ry.

K% I#8st*#t R&s-sINSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD. Page


87/122


I!'reas!g '%$)e""%! ! "(e e


88/122


Pr/or*a#c Gra(, o/ t, Co*(a#%

0

800

400

00

)00

(000

(800

3pr>0 !a">

0

Bun>0 Bul>0 3ug>0 Sep>0 9ct>0 ov>0 6ec>0 Ban>01 /e$>01 !ar>01

TIME

S,ar Ho$)Pattr#

Fa#c&a$ Dta&$s


S,ar Ho$)

Pattr#

5

Pr%$%"ers 7.

I!s""u"%!a*

I!ves"%rs

[email protected]

O"(er I!ves"%r 1.;

Ge!era* Pub*' 7.7


89/122


YEAR

END

NET

SALES

Rs M;

PAT

Rs M;

EPS

Rs;

EPS

GRO>TH

5;

F ??? 111 1@ .@

F E 777 17; 177 1.7

I! ?F, Ba6a6 Au"% re)%r"e# Ne" Pr%" % Rs 7.b 4; !'rease %5,

*arge*y #rve! by (g(er sa*es a!# (g(er %"(er !'%$e.

Sa*es gre- by 7 % "% Rs 1.@b *e# by be""er )r%#u'" $


90/122


sa*es #r%))!g 11 %. E


91/122


92/122


Motorc%c$s

I! ?F, $%"%r'y'*es gre- by @1 % a" ;, u!"s. Gr%-"(

-as #rve! by a! %ver 1 % !'rease ! sa*es % "(e 1@'' a!# ab%ve

1'' 'a"eg%ry 4-('( !'*u#es "(e Ds'%ver a!# Pu*sar5.

I! F, Ba6a6 Au"%/s v%*u$es (ave gr%-! by ?7 % ! $%"%rbes,

resu*"!g ! a $are" s(are ga! % ;b). Ba6a6 Au"% e!#e# "(e year -"(

a $are" s(are % 7.1 ! "(e $%"%r'y'*e seg$e!". T(e gr%-"( (as bee!#rve! by )u*sar 7'' a!# 77''.

Fur"(er gr%-"( -** #e)e!# %! "(e ra$) u) ! v%*u$es % "(e Pu*sar,

-('( 'urre!"*y a''%u!"s %r %!*y 31 % "(e e


93/122


)er$"s "(a" are ssue# by "ra!s)%r" au"(%r"es. I! F, v%*u$es #))e#

by ; #ue "% a**!g )asse!ger seg$e!" sa*es, -('( '%!s""u"es @ % ;

-(ee*er sa*es. T(%ug( "(e g%%#s seg$e!" (as gr%-! a" ; %, Ba6a6

Au"% s (eav*y #e)e!#e!" %! "(e )asse!ger seg$e!".

MAHINDRA ' MAHINDRA

Co*(a#% Dscr&(t&o#M&M s I!#a/s *ea#!g U a!# "ra'"%r $a!ua'"urer. Hav!g

su''essu**y -ea"(ere# "(e re'e!" #%-!"ur! ! "(e "ra'"%r !#us"ry M&M s

!%- -e** )%se# "% be!e" r%$ "(e u)"ur!. T(e '%$)a!y s !%- as)r!g

"% be "(e *ea#!g I!#a! U"*"y e('*e $a!ua'"urer )r%v#!g (g( +ua*"y

Us a" *%- '%s"s.

K% I#8st*#t Ar6u*#ts T(e '%!"!ue# gr%-"( ! "(e "ra'"%r se'"%r -** be!e" M&M as " s "(e

$are" *ea#er.

I!'rease# %'us by "(e g%ver!$e!" %! rura* s)e!#!g ! "(s bu#ge" -**

be!e" "ra'"%r



94/122


$a!ua'"urers.

T(e '%$)a!y/s !'rease# %'us %! e


95/122


Sctor V&2 :e re$a! bu**s( %! "(e $a'r% gr%-"( )'"ure %r )asse!ger 'ars !

I!#a

:e a*s% be*eve "(a" -"(! )asse!ger 'ars, Us -** !'rease "(er

$are" s(are '%!ss"e!"*y %ver "(e !e


96/122


SPECIFICATION OF THE COMPANY

R6&str) O//&cGa"e-ay Bu*#!g, A)%**% Bu!#er Mu$ba Ma(aras("ra

?1

>. s&t ---.$a(!#ra-%r*#.'%$, ---.$a(!#ra.'%$

BSE Scr&(t Co) @@7

NSE Scr&(t Co) M&ME

Fac Va$u o/

S,arRs 1

3! 2- HL Rs 11L ??.

Pr/or*a#c Gra(, o/ t, Co*(a#%

.

0

100

200

300

400

500

600

Apr-

06

May-

06

Jun-

06

Jul-

06

Aug-

06

Sep-

06

Oct-

06

Nov-

06

Dec-

06

Jan-

07

Feb-

07

Mar-

07

T&*

S,ar Ho$) Pattr#INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD. Page


97/122


Fa#c&a$ Dta&$s

YEAR

END

NET

SALES

Rs M;

PAT

Rs M;

EPS

Rs;

EPS

GRO>TH

5;

F ?1 ??.1 ?.1

F E 71 @ ?.1 1.

Ma(!#ra & Ma(!#ras 4M&M5 !e" sa*es, EBITDA a!# !e" )r%" gre-

7, 7; a!# ;7 ! ?F "% Rs 1.1b, Rs 7.1b a!# Rs 1.@b

res)e'"ve*y, !3*!e -"( %ur e


98/122


% M&M s(%-e# g%%# )er%r$a!'e ! F. C%!s%*#a"e# reve!ues,

EBITDA a!# !e" )r%" gre- ;, @ a!# 1 "% Rs @.b, Rs 1;.@b, a!#

Rs .7b, res)e'"ve*y.

T(e bus!ess %u"*%% %r M&M re$a!s )%s"ve. M&M, -"( "s rura*3

'e!"r' )r%#u'" *!e, -** regs"er a 17 % gr%-"( ! "ra'"%r v%*u$es %ver

F3E. :e e


99/122


S%ur'e= C%$)a!y

Stro#6 Pr/or*a#c FY9:M&M/s !e" reve!ues !'rease# ;? % "% Rs .b ! F %! "(e

ba' % a 7 v%*u$e gr%-"(. Tra'"%rs, Us, "(ree -(ee*ers a!# 2Cs

-"!esse# ;7, 7;, 1; a!# ;7 % gr%-"(, res)e'"ve*y. Ne"

rea*8a"%!s !'rease# %. EBITDA $arg! e


100/122


Va$uat&o# a#) V&2Pass#6r V,&c$s

:e e


101/122


S%ur'e= C%$)a!y

Far* E7u&(*#t

T(e ar$ e+u)$e!" seg$e!" 4FES5 s e


102/122


T(e Ma(!#ra3Re!au*" 6%!" ve!"ure (ave *au!'(e# Se#a! 2%ga! !

I!#a ! "(e rs" (a* % 7.

T(e *%-3e!# se#a!, -('( -as *au!'(e# ! Eur%)e ! Qu!e 7?,

s)%r"s a )r'e "ag % US ,1 %r "(e base $%#e* ! Eas"er! Eur%)e. T(e

'ar s "arge"e# "% se** 1$ u!"s )er year by 71 ! seve! reg%!s a'r%ss

Eas"er! a!# Ce!"ra* Eur%)e, Russa, "(e M##*e Eas", 2a"! A$er'a, N%r"(

Ar'a a!# Asa.

T(e 2%ga! (as *au!'(e# ! I!#a -"( @ *%'a*8e# '%$)%!e!"s

!"a**y a!# (ave be $are"e# u!#er "(e Ma(!#ra3Re!au*" ba#ge.

T(e '%$)a!es USP -%u*# be 0:%r*# '*ass +ua*"y a" a! a%r#ab*e

)r'e 9 "(e 'ar s e


103/122


INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD. Page 1;


104/122


CONCLUSIO

N



105/122


CONCLUSION

A"er e- years I!#a -%u*# be'%$e "(e *arger %r'e ! "(e -%r*#

e'%!%$y.

T(e gr%-"( % "(e I!#a! e'%!%$y s be'%$!g (g(, -('( *ea#s "% "(e

(g(er re"ur!s ! "(e 'a)"a* $are".

I!#a/s '%!s"a!"*y !'reas!g gr%-"( s a""ra'"!g "(e FII/s !"eres" ! "(e

I!#a! $are"s.

T(ere -** be $%re a!# $%re 'a)"a* *%- r%$ "(e #eve*%)e# '%u!"res

! I!#a "(r%ug( FIIs a!# FDI.

I!#a (as be'a$e very )%-eru* ! "(e au"%$%b*e se'"%r be'ause % "(e

(g( gr%-"( ! "(e au"%$%b*e se'"%r.

Fr%$ "(e sugges"%! "(e !ves"%rs s(%u*# be very 'au"%us ! "er$s %

!ves"!g "(e $%!ey.

INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD. Page 1@


106/122


FINDINGS



107/122


FINDINGS:

:%r!gs a!# areas % I!#a! 'a)"a* $are"

:%r!gs, %)era"%!s, #ea*!gs, e"'. % a s"%' br%!g r$

4SHAREHAN 2TD.5

Ee'"s %! I!#a! & G*%ba* e'%!%$y #ue "% var%us 'a)"a* $are"s.

Base# %! u!#a$e!"a* a!a*yss % au"% $%b*e !#us"ry a!# )ar"'u*ar

'%$)a!y a! !ves"%r 'a! (ave a! #ea (%- "% !ves", -(e! "% !ves"

& (%- $u'( "% !ves".



108/122


LIMITATIONS



109/122


LIMITATIONS:

TIME CONTRAINT= As "(e )er%# % "(e )r%6e'" -as % %!*y ?@

#ays, "(e !%-*e#ge

ga!e# a!# !%r$a"%! '%**e'"e# s *$"e# "% "(a" e


110/122


111/122


SUGGESTIONS:

" Focus o# Co*(a#&s #ot o# Stoc-s

Ma!y !#v#ua* !ves"%rs $ae "(e $s"ae % %'us!g %! s"%'s a!#

"(e s"%' $are" a" "(e e


112/122


!" B Car/u$ 2&t, t, Po2r o/ t, Mar-t

Eve! !ves"%rs b%ug(" a g%%# '%$)a!y "(a" (as g%%# )%"e!"a*,

"(ey $ay s"** (ave a #%g %! "(er (a!#s. T(e $are" (as a! ab*"y "%

)a!" e!"re se'"%rs -"( "(e sa$e brus(. T(ese )r%*%!ge# 0se'"%r

6u#g$e!"s 'a! be very '%s"*y "% !ves"%rs "(ey #%!/" a''%u!" %r "(e$.

S%$e re)%r"s sugges" "(a" se*e'"!g !#v#ua* '%$)a!es s bare*y

$)%r"a!". I! $%s" 'ases, y%u are buy!g !"% a se'"%r rs" a!# a '%$)a!y

se'%!#. C%!"e


113/122


#e"er$!e y%ur s"y*e ! a bg -ay. Day "ra#ers (ave very s(%r" (%r8%!s 3

"(ey #%!/" use u!#a$e!"a* a!a*yss 4!%r #% "(ey !ee# "%5. Ma!y

!#v#ua* !ves"%rs, -(e"(er %r !%" "(ey a#$" ", ge" 'aug(" u) ! ga$!g

"(e !e


114/122


3" Gt t, Pro(r I#/or*at&o#

Be very 'areu* ab%u" #a*y !e-s. M%s" % " s !%se. S%, be 'areu* !

#a*y !e-s a!# av%# !%ses s%, "(! "(a" (%- #%es "(s $)a'" "(e

u!#a$e!"a* )r%s)e'"s % "(e bus!ess. S%, #%!/" "rus" %! "(a" !%se.

A** )ub*' '%$)a!es ssue )ress re*eases "(a" are u!#ers"a!#ab*y

av%rab*e> s%$e % "(e !e-s y%u ge" s re)ea" r%$ "(e )ress re*ease.Mu'( % "(e #a*y '%$$e!"ary "(a" )us(es "(r%ug( "(e $e#a %!"% y%ur

"e*evs%! %r !e-s)a)er s (g(*y "re!#y 9 '%$$e!"a"%rs are !#!g

)a""er!s "(a" #% !%" rea**y e


115/122


S%, s!'e !ves"%r 'a!!%" !%- every"(!g a!# $u'( % "(e $are"

'%$$e!"ary s sus)e'". 2%% e*se-(ere a!# "rus" rea* e


116/122


e


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GLOSSARY

GLOSSARY

LIST o/ ABBREVIATIONS:

ADR A$er'a! De)%s"%ry Re'e)"s

BSE B%$bay S"%' E


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CM Ca)"a* Mare"

C%. C%$)a!y

DCA De)ar"$e!" % C%$)a!y Aars

DEA De)ar"$e!" % E'%!%$' Aars

DP De)%s"%ry Par"')a!"

FDI F%reg! Dre'" I!ves"$e!"

FI F!a!'a* I!s""u"%!

FII F%reg! I!s""u"%!a* I!ves"%rs

GDR G*%ba* De)%s"%ry Re'e)"s

NSCC2 Na"%!a* Se'ur"es C*ear!g C%r)%ra"%! 2$"e#

NSD2 Na"%!a* Se'ur"es De)%s"%ry 2"#.

NSE Na"%!a* S"%' E


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UTI U!" Trus" % I!#a



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BIBLIOGRAP

HY

BIBLIOGRAPHY

REFERECE BOOKS



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D%!a*# R C%%)er & Pa$e*a S S'(!#*er, 0$usiness %esearch

&ethods, Eg("( E#"%! 47;5, Ta"a M'Gra-3H**, Ne- %r.

G%r#%! & Na"ra6a!, 0'inancial &arkets And "ervices Se'%!# Revse#

E#"%! Re)r!" 47@5, H$a*aya Pub*s(!g H%use. Pu!"(ava"(y Pa!#a!, 0"ecurity Analysis ( )ortfolio &anagement

E#"%! 7, as Pub*s(!g H%us!g Pv". 2"#.

SHAREHAN A2UE 2INE.

>EB SITES

---.!se!#a.'%$ ---.bse!#a.'%$

---.!#!%*!e.'%$

---.$%!ey'%!"r%*.'%$

---.bus!ess3s"a!#ar#.'%$

---.rb.%rg

---.seb.%rg

---.s(are(a!.'%$

http://www.nseind.com/http://www.bseindia.com/http://www.indinfoline.com/http://www.krchoksey.com/http://www.investopedia.com/http://www.ccsindia.org/http://www.sebi.org/http://www.nseind.com/http://www.bseindia.com/http://www.indinfoline.com/http://www.krchoksey.com/http://www.investopedia.com/http://www.ccsindia.org/http://www.sebi.org/


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D&sc$a&*r

T(s re)%r" s %r "(e )ers%!a* !%r$a"%! % "(e au"(%r8e# re')e!"

a!# #%es !%" '%!s"rue "% be a!y !ves"$e!", *ega* %r "a

23361395 Indian Capital Markets

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