dinesh finance

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A STUDY ON ANALYSIS OF EQUITY

SHARE CAPITAL IN BANKING

INDUSTRY WITH REFERENCE

TO SHAREKHAN LIMITED,

PROJECT REPORT

Submitted by

J. DINESHKUMAR

Reg. No. 088001107008

in partial fulfilment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

HINDUSTHAN COLLEGE OF ENGINEERING AND TECHNOLOGY

COIMBATORE-641 032

MAY 2010


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HINDUSTHAN COLLEGE OF ENGINEERING AND

TECHNOLOGY,

COIMBATORE-641 032

DEPARTMENT OF MANAGEMENT STUDIES

PROJECT WORK

MAY 2010

This is to certify that the project entitled

A STUDY ON ANALYSIS OF EQUITY SHARE CAPITAL IN

BANKING INDUSTRY WITH REFERENCE TO SHAREKHAN

LIMITED,

Is the bonafide record project done by

J. DINESHKUMAR

Reg. No. 088001107008

Of MBA- Core during the year 2008-2010.

Mr.N.J.Ravichandhran, Mba, M.Phil., Mr. K.R. Shoban B.com, MBA,

PGDPMIR, NET, SLET.

PROJECT GUIDE HEAD OF THE DEPARTMENT

Submitted for the Viva-Voce examination held on _______________________

INTERNAL EXAMINAR EXTERNAL EXAMINAR


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CONTENTS

DESCRIPTION PAGE NO

Acknowledgement II

List of tables III

List of charts IV

Abstract V

1.1 ABOUT THE STUDY 1

1.2 INDUSTRY PROFILE 4

1.3 COMPANY PROFILE 7

1.4 OBJECTIVE OF STUDY 11

1.5 SCOPE OF THE STUDY 12

1.6 LIMITATION OF THE STUDY 13

1.7 REVIEW OF LITERATURE14

2 RESEARCH METHODOLOGY16

3 DATA ANALYSIS AND INTERPRETATION21

4 FINDINGS AND SUGGESTION58

5 CONCLUSION 63

BIBILIOGRAPHY


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DECLARATION

I affirm that the project work titled A STUDY ON ANALYSIS OF EQUITY

SHARE CAPITAL IN BANKING INDUSTRY WITH REFERENCE TO

SHAREKHAN LIMITED,being submitted in partial fulfillment for the award of MASTER

OF BUSINESS ADMINISTRATION is the original work carried out by me. It has not formed the

part of any other project work submitted for award of any degree or diploma, either in this or any

other University.

J. DINESHKUMAR

(088001107008)

I certify that the declaration made above by the candidate is true

Mr.N.J.Ravichandhran, Mba,M.Phil.,

Lecturer

Department of Management Studies


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ACKNOWLEDGMENT

I first and foremost thank to lord god almighty for giving me grace and knowledge to

complete this project work successfully

My sincere and hearty thanks to Dr.V.DURAISAMY, ME, Ph.D., The Principal,

Hindustan College of Engineering and technology, Coimbatore, for giving me opportunity to do

the project.

I express my thanks to Head of the Department of management studies, Hindustan College

of Engineering and technology, Coimbatore, for her support and encouragement in completing in

this project work.

I admit my thanks to, Lecturer .Mr.N.J.Ravichandhran, Mba,M.Phil., of Department of

management studies, Hindustan College of Engineering and technology, Coimbatore, for the

continuous guidance to accomplish my project work. And I thank all the other faculties of the

department of management studies for their valuable support in my project study.

I am deeply indebted to Mr.Ramanarasiman Manager of finance, Sharekhan Limited,

Erode for giving me the permission and arranged for the needful help and enabling me to

undertake project in their esteemed and reputed organization.

Last but not least I submit my thanks to my parents, family members and friends for

providing me their support on my work.

J.DINESHKUMAR


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ABSTRACT

The study entitled Analysis Of Equity Share Price Movements was conducted in Share

Khan Ltd. The study was undertaken to know whether the indices can be used as a significant

explanatory variable for predicting share Market prices.

Through this study the impact of equity share price movements of banking industries have

been analyzed, the strength of association of variables have also been measured.

The study was conducted by collecting data from various websites. The selected companies

were those companies which are listed and actively traded with high volumes in BSE. The data

were collected for 10 companies from banking industry. The data is collected for five years

(1.4.2005 31.3.2010) which is taken for the study.

The collected data were exploratory datas which was measured through simple Correlation

analysis and Beta analysis. The analysis shows that share price of banking industry to analyze the

risk of the companies.

CHAPTER I

1.1 ABOUT THE STUDY


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EQUITES AN OVERVIEW

An instrument that signifies an ownership position, or equity, in a corporation, and

represents a claim on its proportionate share in the corporation's assets and profits. A personholding such an ownership in the company does not enjoy the highest claim on the company's

earnings. Instead, an equity holder's claim is subordinated to creditor's claims, and the equity

holderwill only enjoy distributions from earnings after these higher priority claims are satisfied.

Also called equities or equity securities or corporate stock.

EQUITY INVESTMENT:

Equity investment generally refers to the buying and holding of shares of stock on a

stock market by individuals and funds in anticipation of income from dividends and capital gain as

the value of the stock rises. It also sometimes refers to the acquisition of equity (ownership)

participation in a private (unlisted) company or a startup (a company being created or newly

created). When the investment is in infant companies, it is referred to as venture capital investing

and is generally understood to be higher risk than investment in listed going-concern situations.

EQUITY FUND:

A stock fund orequity fund is a fund that invests in Equities more commonly

known as stocks. Such funds are typically held either in stock or cash, as opposed to Bonds, notes,

or other securities. This may be a mutual fund or exchange-traded fund. The objective of an equity

fund is long-term growth through capital appreciation, although dividends and interest are also

sources of revenue. Specific equity funds may focus on a certain sector of the market or may be

geared toward a certain level of risk.

Stock funds can be distinguished by several properties. Funds may have a specific

style, for example, value or growth. Funds may invest in solely the securities from one country, or

from many countries. Funds may focus on some size of company, that is, small-cap, large-cap, et
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cetera. Funds which are managed by professionals are said to be actively managed where as Index

funds try as best as possible to mirror specific market indices.

SHAREHOLDERS' EQUITY:

Shareholders' equity (or stockholders' equity, shareholders' funds,

shareholders' capital employed) is this interest in remaining assets, spread among individual

shareholders of common or preferred stock.

At the start of a business, owners put some funding into the business to finance

assets. Businesses can be considered to be, for accounting purposes, sums of liabilities and assets;

this is the accounting equation. After liabilities have been accounted for, the positive remainder is

deemed the owner's interest in the business.

This definition is helpful when a business is not paying its bills and gets liquidated,

wound up, put into receivership or bankruptcy. Then, a series of creditors, ranked in priority

sequence, have the first claim on the proceeds (e.g. asset sales), and ownership equity is the last or

residual claim against assets, paid only after all other creditors are paid. In such a case, creditors

may not get enough money to pay their bills, and nothing is left over to reimburse owners' equity.

Thus owners' equity is reduced to zero. Ownership equity is also known as risk capital, liable

capitaland equity.

PRIVATE EQUITY:

In finance, private equity is an asset class consisting of equity securities in

operating companies that are not publicly traded on a stock exchange. Investments in private equity

most often involves either an investment of capital into an operating company or the acquisition of

an operating company. Capital for private equity is raised primarily from institutional investors.

There is a wide array of types and styles of private equity and the term private

equity has different connotations in different countries.

Among the most common investment strategies in private equity include leveraged

buyouts, venture capital, growth capital, distressed investments and mezzanine capital. In a typical


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leveraged buyout transaction, the private equity firm buys majority control of an existing or mature

firm. This is distinct from a venture capital or growth capital investment, in which the private

equity firm typically invests in young or emerging companies, and rarely obtain majority control.

Private equity fund

Private equity fund is a pooled investment vehicle used for making investments in

various equity (and to a lesser extent debt) securities according to one of the investment strategies

associated with private equity. Private equity funds are typically limited partnerships with a fixed

term of 10 years (often with annual extensions). At inception, institutional investors make an

unfunded commitment to the limited partnership, which is then drawn over the term of the fund.

A private equity fund is raised and managed by investment professionals of a

specific private equity firm (the general partner and investment advisor). Typically, a single private

equity firm will manage a series of distinct private equity funds and will attempt to raise a new

fund every 3 to 5 years as the previous fund is fully invested.

1.2 INDUSTRY PROFILE

In the wake of the introduction of new economic policy in the middle of the year 1991, the

Indian Capital Market has witnessed a tremendous growth. There was an explosion of investor

interest during the nineties and an equity cult emerged in the country. To experience sustained

growth statutory legislations have helped the capital market. Foreign Exchange regulation act is


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one such legislation in this direction. Government of India has initiated several steps to strengthen

the capital market and regulate its activities. The number of shareholders has increased from a low

figure of about two millions towards the end of seventies to the level of more than 25 millions.

An important recent development has been the entry of Foreign Institutional Investors as

participants in the primary and secondary markets for industrial securities. In the past several

years, investments in developing countries have increased remarkably. Among the developing

countries India has received considerable capital inflows in recent years. The liberalization policy

of the Government of India has now started yielding results and the country is poised for a big leap

in the industrial and economic growth. The

Economy of the country is mainly based on the development of the corporate sectors. Funds may

be raised through securities market for financing corporate growth.

Generally, the security prices reflect the performance of a company. Both economic and

non-economic factors invariably affect stock return behavior. As Cootner (1964) says that the

prices of securities are typically very sensitive, responsive to all events, both real and imagined.

Again a major factor responsible for stock return fluctuations is speculative purchase and sale by

foreign institutional investors. Indian financial institutions also play a major role in equity market

leading to stock return fluctuations. Many theories have come up which have empirically verified

the investors behavior at the international as well as at the Indian context. In the present project, it

is attempted to test the equity price movements taking pharmaceuticals, oil and sugar industries as

sample sectors.

Stock Exchange

The stock exchange or secondary market is a highly organized market for the purchase and

sale of second hand quoted of listed securities. The securities contracts (Regulation) Act 1956

defines a stock exchange as an association, organization or not, established for the purpose of

assisting, regulating and controlling business in buying, selling and dealing in securities.


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Of all the modern service institutions, stock exchange plays a crucial agents and facilitators

of entrepreneurial progress. After the industrial resolution, as the size of the business enterprises

grew, it was no longer possible for individual person or even partnerships to raise such huge

amount for undertaking these ventures. Such huge requirements of capital can be met only large

number of individuals.

These investors could be expected to participate actively only if investment is liquid or they

could sell a part of their stake whenever they wish to generate cash. This liquidity can be achieved

through shares and debentures representing smallest units of ownership and lending represented by

the public. The institution where these securities are traded is known as stock exchange. This stock

exchange is one of the most important institutions in the capital market.

Bombay Stock Exchange

The origin of the Bombay stock exchange date back to 1875. It was organized under the

name of the native stock and shares brokers association as a voluntary and non-profit making

association. It was recognized on a permanent basis in 1957. This premier stock exchange is the

oldest stock exchange in Asia. The objectives of the stock exchanges are:

1. To safeguard the interest of the investing public having dealings on the exchange.

2. To establish and promote honorable and just practices in securities transaction.

3. To promote, develop, and maintain well regulated market for dealing in securities.

4. To promote industrial development in the country through efficient resource

mobilization by the way of investment in corporate securities.

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, which 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


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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 June2000.

Trading on NSE is characterized by four key innovations.

The physical floor was replaced by anonymous, computerized order- matching with strict

prime-time priority.

The limitations of being on Mumbai and the limitations of Indias Public telecom network

were avoided by using satellite communications. Now NSE has a network of over 2000 satellite

terminals all over the country. On a typical day almost over 3500 traders login to the trading

computer over this network. This is larger than the capacity of the largest trading floors in the

world.

NSE is not owned by brokers. It is a limited liability company and brokers or franchisees.

Therefore NSEs staff is free of pressures from brokers and is able to perform its regulatory and

enforcement functions more effectively.

Traditional practices of unreliable fortnightly settlement cycle with escape clause of badla

were replaced by a strict weekly settlement cycle without badla.

1.3 COMPANY PROFILE

Sharekhan is a retail broking arm of S.S.Kantilal Ishwarlal Investors Services Pvt Ltd, an

organization with more than eight decades of trust and credibility in the stock market. Sharekhan

Ltd(Formally SSKI Investors Services Pvt Ltd) was promoted by Mr.Shripal.S.Morakhia and

Mr.Shreyas.S.Morakhia. It is currently Indias largest broking house. It is a member of Bombay


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Stock Exchange. It is a depository participant of the NSDL and CDSL. Its business includes Stock

broking, Depository services, Portfolio management and Derivatives.

The companys core specialty lies in its retail distribution with a large network of branches

i.e.510 share shops(retail shops) in 170 cities in India. Its strength lies in its investment research

capabilities. Its research division several analysts continuously monitoring global, national,

regional, political, economical and social situations so as to assess their impact on the economy in

general, the sectors and companies they research which helps them if offering quality research and

advice to clients.

Milestones of SSKI:

1922: The SSKI started its operation in stock broking.

1922: The SSKI became the first member in the BSE as institutional broker.

1984: Ventured into corporate finance.

2000: It started its retail business with the brand name SHAREKHAN.

2002: The site was launched on Feb 8th in on-line trading.

2002: The next generation technology product Speed Trade was launched on April 17th.

2002: The advanced technology in on-line business Speed trade plus was launched on

October 28th for derivative trading.

2005: It crossed 40,000 clients trading on-line.

2006: The SSKI crossed US $8 billion of private equity deals.

Achievements of Sharekhan:

Ratedamong the top 20 wired companies along with Reliance, HUL, Infosys et by

Business Today, January edition.

Awarded Top Domestic Brokerage House four times by Euro money and Asia money.


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Pioneer of on-line trading in India amongst the top 3 on-line trading website from

India. Most preferred financial destination amongst on-line broking customers.

Winner of Best Financial Website award.

Indias most preferred brokers within 5 years. Awaaz Consumers Award 2005.

Way of Life in Sharekhan:

People driven relationships

Fleet footed

Growth driven

Values and ethics based

Tremendous growth opportunities for dynamic

Individuals with strong entrepreneurial instinct.

Vision, Mission and Objectives:

Vision:

To be the best retail broking brand in the Indian equities market


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Mission:

To educate and empower the individual investor to make better investment decisions

through quality advice and superior service

Objectives:

To ensure satisfaction through teamwork and professional management.

To provide good quality of services on a continuous basis to the satisfaction of clients

To attain specified level of performance every year and ensure compliance with

statutorily requirements

To extend effective guidance to brokers, to clearing house corporation, companies and

investor in e-stock trading.

Products and Services offered by Sharekhan:

The products offered by Sharekhan are as follows

Online Products

1.CLASSIC ACOUNT

2.SPEEDTRADE

1. CLASSIC ACCOUNT:

This account allows the client to the trade through out website and it is suitable for retail

investors.Our online trading website also comes with the Dial-n-Trade service that enables you to

buy and sell shares by calling their dedicated toll free number.


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2.SPEEDTRADE:

SPEEDTRADE is a next generation online trading product that brings the power of your

brokers terminal to your PC. It is ideal for active traders who transact frequently during days

trading session capitalize on intra-day price movements. SPEEDTRADE is an internet based

application available on CD, which provides everything a trader needs on one screen, there by,

reducing the required to execute a trade.

SPEEDTRADE has all the above mentioned features with the power to trade in cash and

derivatives from a single screen.

KEY FEATURES OF SPEEDTRADE:

Single Screen Trading Terminal

Real-Time Streaming Quotes

Live Tic-Tic Intra-Day Charting

Instant Order/Trade Confirmation In The Same Window

Hot Keys Similar To A Brokers Terminal

Customized Alerts Based On Multiple Parameters

Back-Up Facility To Place Trades On Direct Phone Lines

1.4 OBJECTIVES OF THE STUDY

To know the trading activities those are being done by the company.

To study the online trading that are been done by the company.


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To analyze the equity share price movements of banking industry.

To give a better solution to the company in order to give a suggestion to

the investors before their investment.

1.5 SCOPE OF THE STUDY

The investors are not ready to take more risk by investing in the banking

industry. So the analysis are made in order to make the investors to invest in the

company which gives better return.


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The study is all about the equity share price movements for banking

industry, were the suggestions will be given to the investors to invest in that

company or not.

To analyze the factors that affects the share prices of the banking industry.

1.6 LIMITATIONS OF THE STUDY

This study is confined to 5 Years only and hence the changes taken place before and after

these periods have not taken into consideration.


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This study is compared with SENSEX indices only.

Only sample of 10 bank are taken for consideration.

1.7 REVIEW OF LITERATURE

WHAT DRIVES PRICE MOVEMENT?

A perfect capital market predicts changes in stock price when the equilibrium valuation

of the stock changes. They try to find out factors other than this. They focus on a theyll-


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established event: the negative price reaction to the seasoned equity offerings. While this can be

explained by asymmetric information, a downward-sloping demand curve for stocks is also

consistent with it. They argue that they can disentangle the two factors using a natural experiment

in Chinas stock market, where companies equity offering plans need to be approved by the

regulator.

They find strong negative price reactions to the announcement of such approval. Since

all information on the overvaluation of the firm is released when the company announces its equity

offering plan, the negative reaction to the approval of the plan cannot be explained by changes in

the valuation of the firm. Furthermore, they find that the negative price reaction to the

announcement of the approval is absent in the B-share market if the company only issues shares in

the A-share market. The evidence suggests that a supply shock to a downward-sloping demand

curve drives the price movement.

JAMES JINHO CHANG AND HYUN-HAN SHIN:

The effect of the Securities and Exchange Commission's (SEC) review of the

registration statement on the issuing firm's stock price during the new equity issuance process. We

find that the market reaction to the amendment of the registration statement is negative in general

and it is more negative as amendment is filed repeatedly and contains non-neutral information.

The findings imply that the SEC's review procedure (including corporate disclosure

regulation) forces issuing firms to reveal unfavorable information during the new equity issuance

process. Similarities in the review process between some Asian countries and the United States

suggest that our findings based on the US data can be applicable to Asian securities markets.

ROBERT SHILLER'S:

When looking at broad stock market price indexes, such as the Standard & Poor's 500,

Shiller's argument is largely based on two premises about the historical behavior of stock prices.

First, Shiller asserts that market wide price--dividend and price--earnings ratios have a tendency to


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revert toward their historical averages. This implies that high stock price valuations are not likely

to persist. (1) Second, dividend movements are not nearly volatile enough to rationalize stock price

volatility. This suggests that changes in expectations about future dividends cannot be responsible

for stock price movements.

While Shiller argues that irrational exuberance explains the run-up in stock prices in the

1990s, we present evidence that the case for market fundamentals is stronger than it appears on the

surface. First, we demonstrate that swings in the price--dividend and price--earnings ratios show

substantial persistence, particularly since World War II. This raises doubts about the existence of a

"normal" price--dividend (or price--earnings) ratio. Hence, using the average value of one of these

ratios as a gauge of the average, or normal, valuation ratio is misleading. A price--dividend ratio of

30 may have seemed high from the pre-1980s perspective but not after the 1990s.

Second, we investigate whether plausible combinations of lower expected future real

discount rates or higher expected real dividend (earnings) growth could rationalize broad market

stock values, raising the possibility that changes in market fundamentals have made a major

contribution to the run-up in stock prices.

Using panel data for the OECD countries over the period from 1953 to 1999, the

empirical estimates showed that factor shares and supply shocks are important, if not the mostimportant, macroeconomic variables driving real share prices. Hence, the increase in capitals

income share in the 1980s and the 1990s were an influential factor behind the share market run-up

in the 1980s and 1990s.

CHAPTER II

RESEARCH METHODOLOGY

INTRODUCTION

Research methodology is a way to systematically solve the research problems. It includes

the overall research design, the sampling procedure, and Data collection method and analysis

procedure.


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RESEARCH DESIGN

A research design is the arrangement of condition for collection and analysis of data in a

manner, which may result in an economy in procedure. It stands for advance planning for

collection of the relevant data and the techniques to be used in analysis, keeping in view the

objectives of the research and availability of time. The research used here for the study is

descriptive research. Descriptive research is quite informal, it relays on the secondary data .The

result are usually used for making decision by themselves.

POPULATION

All the companies are taken from banking sector in the equity market listed in Bombay

Stock Exchange constitute population as far as my study is concern.

SAMPLING TECHNIQUES

The samples are chosen from the BSE India site, which actively traded Banking

companies in the past five years.

No of Years 5 Years

No of sector 1 Sector

No of banks 10 banks

Sample Size

Five years financial data collected from the Banking sectors and 10 companies have been

selected.

Period taken for the study : 1.4.2005 to 31.3.2010.

Sector for study : Banking sector.


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SELECTED COMPANIES INBANKING SECTOR

1. Allahabad bank

2. Union Bank

3. Syndicate Bank

4. Canara Bank

5. Indian Overseas Bank

6. Fedaral Bank

7. Uco Bank

8. Bank of India

9. Andra Bank

10. ICICI Bank

DATA SOURCE

While deciding about the method of data collection for the study the researcher should keep

in mind the two sources of data.

Secondary data

The source taken for study is,

Secondary Data

Secondary data are also collected through the BSE India sites and websites

of various companies

Review of the articles being published on the topic in various magazines

The information in the BSE India has helped to analyze the price changes.

STATISTICAL TOOLS


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The data are analyzed through statistical method. There are various statistical tools to

analysis the data.

Correlation

Beta

Simple Moving Average.

Technical indicator:

Line Chart.

SIMPLE MOVING AVERAGE

An average is the sum of prices of the share over some weekly periods divided by the

number of weeks. This point is market on the latest date for which a price bar has been plotted.

This process is repeated for the previous dates. The points thus obtained are connected together to

give the moving average line.

CORRELATION

Correlation analysis helps to determine the strength of the linear relationship between the

two variables X and Y, in other words, as to how strongly are these two variables correlated. Karl

Pearson, in 1896, developed an Index or Coefficient of this association in cases where the

relationship is a linear one, i.e. where the trend of the relationship can be described by a straight

line.

The Pearsons coefficient of correlation is designated by r. The coefficient of correlation r

can be designed as a measure of strength of the linear relationship between the two variables X and

Y.


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Thesign of the coefficient can be positive or negative. It is positive when the slope of the

line is positive and it is negative when the slope of the line is negative.

The Coefficient of Correlation (r)

r = 2222 )Y(Yn)X(Xn

)Y()X()XY(n

BETA

Risk is an important consideration in holding any portfolio. The risk in holding securities is

generally associated with the possibility that realised returns will be less than the returns expected.

Risks can be classified as Systematic risks and Unsystematic risks.

Unsystematic risks:

These are risks that are unique to a firm or industry. Factors such as management

capability, consumer preferences, labour, etc. contribute to unsystematic risks. Unsystematic

risks are controllable by nature and can be considerably reduced by sufficiently diversifying

one's portfolio.

Systematic risks:

These are risks associated with the economic, political, sociological and other macro-level

changes. They affect the entire market as a whole and cannot be controlled or eliminated merely by

diversifying one's portfolio.

BETA

The degree, to which different portfolios are affected by these systematic risks as

compared to the effect on the market as a whole, is different and is measured by Beta. To put it


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differently, the systematic risks of various securities differ due to their relationships with the

market. The Beta factor describes the movement in a stock's or a portfolio's return in relation to

that of the market returns. For all practical purposes, the market returns are measured by the

returns on the index (Nifty, Mid-cap etc.), since the index is a good reflector of the market.

Beta is calculated as:

where,

Y is the returns on your portfolio or stock - DEPENDENT VARIABLEX is the market returns or index - INDEPENDENT VARIABLE

Variance is the square of standard deviation.

Covariance is a statistic that measures how two variables co-vary, and is given by:

Where, N denotes the total number of observations, and and respectively represent the

arithmetic averages of x and y.

In order to calculate the beta of a portfolio, multiply the weightage of each stock in the portfolio

with its beta value to arrive at the weighted average beta of the portfolio.

DATA ANALYSIS AND INTERPRETATION

MOVING AVERAGE OF ALLAHABAD BANK

BANK DATE CLOSING MOVING AVG

Allahabad bank 2010-Mar 142.5

Allahabad bank 2010-Feb 132.65

Allahabad bank 2010-Jan 141.25 138.8

Allahabad bank 2009-Dec 126.1 133.33

Allahabad bank 2009-Nov 133.35 133.56


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Allahabad bank 2009-Oct 119.2 126.27

Allahabad bank 2009-Sep 119.35 123.96

Allahabad bank 2009-Aug 88.65 109.06

Allahabad bank 2009-Jul 88.4 98.8

Allahabad bank 2009-Jun 77.65 84.9

Allahabad bank 2009-May 86.25 84.1

Allahabad bank 2009-Apr 52.5 72.13

Allahabad bank 2009-Mar 38.85 59.2

Allahabad bank 2009-Feb 40.1 43.87




Allahabad bank 2008-Oct 48.7 49





Allahabad bank 2008-May 80.55 65.37Allahabad bank 2008-Apr 84.45 73.55










Allahabad bank 2007-Jun 82 89.38

Allahabad bank 2007-May 85.45 87.66Allahabad bank 2007-Apr 79.4 82.28






Allahabad bank 2006-Oct 93 91.27





Allahabad bank 2006-May 81.35 69.93









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Allahabad bank 2005-Jun 81 87.58

Allahabad bank 2005-May 85 86.68


INFERENCE

From the above table found that

The closing price of ALLAHABAD BANK as on APRIL 2005 is 78.1 which is below its

moving average (81.37). Hence it has been trending down.

Therefore the security generates sell signal.


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MOVING AVERAGE OF UNION BANK

Bank DATE CLOSING MOVING AVG

Union bank 2010-Mar 292.95

Union bank 2010-Feb 256.05

Union bank 2010-Jan 254.75 267.97

Union bank 2009-Dec 264 288.26

Union bank 2009-Nov 276.95 265.23

Union bank 2009-Oct 262.15 267.7

Union bank 2009-Sep 239.9 259.66

Union bank 2009-Aug 214.3 238.78

Union bank 2009-Jul 233.7 229.3

Union bank 2009-Jun 241.25 229.75

Union bank 2009-May 204.1 226.35

Union bank 2009-Apr 164.15 177.45

Union bank 2009-Mar 147.25 171.83

Union bank 2009-Feb 129.6 147

Union bank 2009-Jan 147.7 141.32

Union bank 2008-Dec 163 146.76Union bank 2008-Nov 148.8 153.16

Union bank 2008-Oct 125.2 145.66

Union bank 2008-Sep 143.5 139.16

Union bank 2008-Aug 143.35 137.35

Union bank 2008-Jul 131.95 139.6

Union bank 2008-Jun 109.4 128.23

Union bank 2008-May 137.5 126.09

Union bank 2008-Apr 160.4 135.76

Union bank 2008-Mar 141 146.3

Union bank 2008-Feb 185.65 162.35

Union bank 2008-Jan 191.45 172.7

Union bank 2007-Dec 206.35 194.48

Union bank 2007-Nov 177.2 191.66

Union bank 2007-Oct 173.95 185.83

Union bank 2007-Sep 163.3 171.48

Union bank 2007-Aug 136.4 157.88

Union bank 2007-Jul 155.65 151.78

Union bank 2007-Jun 132.3 141.45

Union bank 2007-May 120.55 136.16


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Union bank 2007-Apr 106.85 119.9

Union bank 2007-Mar 103.9 110.43

Union bank 2007-Feb 97.9 102.88

Union bank 2007-Jan 111.25 104.35

Union bank 2006-Dec 122.65 110.6

Union bank 2006-Nov 128.65 120.85

Union bank 2006-Oct 129.5 129.26

Union bank 2006-Sep 136.35 132.5

Union bank 2006-Aug 116.9 127.58

Union bank 2006-Jul 102.05 118.43

Union bank 2006-Jun 90.4 103.11

Union bank 2006-May 107 99.82

Union bank 2006-Apr 116.4 104.6

Union bank 2006-Mar 121.85 115.08

Union bank 2006-Feb 122.2 120.15

Union bank 2006-Jan 123.9 122.65

Union bank 2005-Dec 122.1 122.73

Union bank 2005-Nov 112.2 119.4Union bank 2005-Oct 113.15 115.81

Union bank 2005-Sep 134.7 120.01

Union bank 2005-Aug 134.6 127.48

Union bank 2005-Jul 134.2 134.5

Union bank 2005-Jun 108 125.6

Union bank 2005-May 104.8 115.66

Union bank 2005-Apr 96.7 103.16

INFERENCE


The closing price of UNION BANK as on APRIL 2005 is 96.7 which is below its moving

average (103.16). Hence it has been trending down.



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MOVING AVERAGE OF SYNDICATE BANK

BANK DATE CLOSING MOVING AVGSyndicate bank 2010-Mar 86.05

Syndicate bank 2010-Feb 83.6

Syndicate bank 2010-Jan 85.65 85.1

Syndicate bank 2009-Dec 95.95 88.4

Syndicate bank 2009-Nov 90.85 90.81

Syndicate bank 2009-Oct 86.9 91.23

Syndicate bank 2009-Sep 93.35 90.36

Syndicate bank 2009-Aug 79.35 86.53

Syndicate bank 2009-Jul 83.4 85.36Syndicate bank 2009-Jun 71.85 78.2

Syndicate bank 2009-May 79.05 78.1

Syndicate bank 2009-Apr 57.35 69.41

Syndicate bank 2009-Mar 48 61.46

Syndicate bank 2009-Feb 49.35 51.56

Syndicate bank 2009-Jan 61.65 53


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Syndicate bank 2008-Jul 53.3 59.25Syndicate bank 2008-Jun 51.15 54.6



Syndicate bank 2008-Mar 75 73.11

Syndicate bank 2008-Feb 98 82.55





Syndicate bank 2007-Sep 92.25 94.38Syndicate bank 2007-Aug 78 86.45

Syndicate bank 2007-Jul 83.25 84.5

Syndicate bank 2007-Jun 76.65 79.3



Syndicate bank 2007-Mar 63.95 71.55

Syndicate bank 2007-Feb 67.8 68.53



Syndicate bank 2006-Nov 81.4 76.65Syndicate bank 2006-Oct 81.25 79.18

Syndicate bank 2006-Sep 90 84.22





Syndicate bank 2006-Apr 80 66.26

Syndicate bank 2006-Mar 89.35 79.4

Syndicate bank 2006-Feb 93 87.45










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INFERENCE


The closing price of SYNDICATE BANK as on APRIL 2005 is 47.95 which is below its




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MOVING AVERAGE OF CANARA BANK

BANK DATE CLOSING MOVING AVGCanara bank 20010-Mar 410.35

Canara bank 20010-Feb 391.95

Canara bank 20010-Jan 390.45 397.58

Canara bank 2009-Dec 390.75 391.05

Canara bank 2009-Nov 396.25 392.48

Canara bank 2009-Oct 341.2 376.07

Canara bank 2009-Sep 321.75 353.07

Canara bank 2009-Aug 266.35 309.77

Canara bank 2009-Jul 285.5 291.2

Canara bank 2009-Jun 263.95 271.93

Canara bank 2009-May 283.95 277.8

Canara bank 2009-Apr 197.55 248.48

Canara bank 2009-Mar 165.9 215.8

Canara bank 2009-Feb 165.35 176.27


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Canara bank 2009-Jan 180.25 170.5

Canara bank 2008-Dec 187.8 177.8

Canara bank 2008-Nov 169.05 179.03

Canara bank 2008-Oct 165.25 174.03

Canara bank 2008-Sep 188.75 174.35

Canara bank 2008-Aug 215.5 189.83Canara bank 2008-Jul 183.75 196

Canara bank 2008-Jun 178 192.42

Canara bank 2008-May 216 192.58

Canara bank 2008-Apr 237 210.33

Canara bank 2008-Mar 225.2 226.06

Canara bank 2008-Feb 278.1 246.76

Canara bank 2008-Jan 289.45 264.25

Canara bank 2007-Dec 332.05 299.86

Canara bank 2007-Nov 271.45 297.65

Canara bank 2007-Oct 292.95 298.82Canara bank 2007-Sep 278.2 280.87

Canara bank 2007-Aug 244 271.72

Canara bank 2007-Jul 261.75 261.32

Canara bank 2007-Jun 269.65 258.47

Canara bank 2007-May 244.2 258.53

Canara bank 2007-Apr 217.65 243.83

Canara bank 2007-Mar 194.7 218.85

Canara bank 2007-Feb 210.5 207.62

Canara bank 2007-Jan 241.1 215.43

Canara bank 2006-Dec 276.2 242.6Canara bank 2006-Nov 297.75 271.68

Canara bank 2006-Oct 294 289.32

Canara bank 2006-Sep 284.15 291.97

Canara bank 2006-Aug 221.2 266.45

Canara bank 2006-Jul 196.65 234

Canara bank 2006-Jun 200.8 206.22

Canara bank 2006-May 229.25 208.9

Canara bank 2006-Apr 246.15 676.2

Canara bank 2006-Mar 266.9 247.43

Canara bank 2006-Feb 286.15 266.4

Canara bank 2006-Jan 249.15 267.4

Canara bank 2005-Dec 240.55 258.62

Canara bank 2005-Nov 209.75 233.15

Canara bank 2005-Oct 201.95 217.41

Canara bank 2005-Sep 231.95 214.55

Canara bank 2005-Aug 224.6 219.5

Canara bank 2005-Jul 252.1 267.57


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Canara bank 2005-Jun 210.9 229.2

Canara bank 2005-May 199.55 220.85

Canara bank 2005-Apr 174.95 195.13

INFERENCE


The closing price of CANARA BANK as on APRIL 2005 is 174.95 which is below its




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MOVING AVERAGE OF INDIAN OVERSEAS BANK


Indian Overseas Bank 2010-Mar 91.95

Indian Overseas Bank 2010-Feb 88.1

Indian Overseas Bank 2010-Jan 92.55 90.87

Indian Overseas Bank 2009-Dec 110.55 97.06

Indian Overseas Bank 2009-Nov 115.9 106.33

Indian Overseas Bank 2009-Oct 101.25 109.23

Indian Overseas Bank 2009-Sep 126.65 114.6

Indian Overseas Bank 2009-Aug 84.25 104.5

Indian Overseas Bank 2009-Jul 87.55 99.48

Indian Overseas Bank 2009-Jun 86.65 86.15

Indian Overseas Bank 2009-May 91 88.4

Indian Overseas Bank 2009-Apr 64.3 80.65

Indian Overseas Bank 2009-Mar 45.5 66.93

Indian Overseas Bank 2009-Feb 46.15 38.65


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Indian Overseas Bank 2008-Aug 90.35 85.21Indian Overseas Bank 2008-Jul 84.5 88.85


Indian Overseas Bank 2008-May 115.75 93.35







Indian Overseas Bank 2007-Oct 133.4 158.85Indian Overseas Bank 2007-Sep 144.3 147.38




Indian Overseas Bank 2007-May 112.15 119.16


Indian Overseas Bank 2007-Mar 103 110.6



Indian Overseas Bank 2006-Dec 110.7 110.66Indian Overseas Bank 2006-Nov 118.15 115.75



Indian Overseas Bank 2006-Aug 92 106.51



Indian Overseas Bank 2006-May 84.25 76












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Indian Overseas Bank 2005-May 77 79.85


INFERENCE


The closing price of INDIAN OVERSEAS BANK as on APRIL 2005 is 70.75 which is

below its moving average (73.93). Hence it has been trending down.



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MOVING AVERAGE OF FEDERAL BANK


Federal bank 2010-Mar 266.95

Federal bank 2010-Feb 257.25

Federal bank 2010-Jan 255.35 259.85

Federal bank 2009-Dec 235.75 249.45

Federal bank 2009-Nov 235.2 242.1

Federal bank 2009-Oct 240.15 237.03

Federal bank 2009-Sep 251.75 242.3

Federal bank 2009-Aug 219.75 237.21

Federal bank 2009-Jul 240.2 237.23

Federal bank 2009-Jun 248.2 236.05

Federal bank 2009-May 246.6 224.6

Federal bank 2009-Apr 187 227.26

Federal bank 2009-Mar 138.1 190.56

Federal bank 2009-Feb 124.05 149.71








Federal bank 2008-Jun 182 196.06

Federal bank 2008-May 219.35 197.6

Federal bank 2008-Apr 240.25 213.86


Federal bank 2008-Feb 296.95 251.16Federal bank 2008-Jan 310.9 274.71





Federal bank 2007-Aug 344 368.7


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Federal bank 2007-Jul 356 357.35


Federal bank 2007-May 267 308.35



Federal bank 2007-Feb 220.45 226.53Federal bank 2007-Jan 248 228








Federal bank 2006-May 189 176.76

Federal bank 2006-Apr 208.6 187.95Federal bank 2006-Mar 201.65 199.75

Federal bank 2006-Feb 172.6 194.08








Federal bank 2005-Jun 158.6 175.3Federal bank 2005-May 166 169.4


INFERENCE


The closing price of FEDERAL BANK as on APRIL 2005 is 142.4 which is below its


Therefore the security generates sell signal


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MOVING AVERAGE OF UCO BANK


Uco Bank 2010-Mar 56.75

Uco Bank 2010-Feb 56.8

Uco Bank 2010-Jan 62.45 58.67

Uco Bank 2009-Dec 55.3 58.18

Uco Bank 2009-Nov 55.8 57.85

Uco Bank 2009-Oct 50.3 53.8

Uco Bank 2009-Sep 56.6 54.23


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Uco Bank 2009-Aug 43.5 50.13

Uco Bank 2009-Jul 42.55 47.55

Uco Bank 2009-Jun 40.15 42.06

Uco Bank 2009-May 43.7 42.13

Uco Bank 2009-Apr 28.3 37.38

Uco Bank 2009-Mar 24.2 32.06Uco Bank 2009-Feb 25.85 26.11

Uco Bank 2009-Jan 27.75 25.93

Uco Bank 2008-Dec 28.55 27.38

Uco Bank 2008-Nov 25.4 27.23

Uco Bank 2008-Oct 28.9 27.61

Uco Bank 2008-Sep 34.5 29.6

Uco Bank 2008-Aug 38.3 33.9

Uco Bank 2008-Jul 33.75 35.52

Uco Bank 2008-Jun 32 34.68

Uco Bank 2008-May 40.5 35.42Uco Bank 2008-Apr 42.35 38.28

Uco Bank 2008-Mar 36.95 39.93

Uco Bank 2008-Feb 50 43.1

Uco Bank 2008-Jan 58.6 48.52

Uco Bank 2007-Dec 59.15 55.92

Uco Bank 2007-Nov 56.15 57.97

Uco Bank 2007-Oct 41.85 52.38

Uco Bank 2007-Sep 48.3 48.77

Uco Bank 2007-Aug 32 40.72

Uco Bank 2007-Jul 27.55 35.95Uco Bank 2007-Jun 23.75 27.76

Uco Bank 2007-May 24 25.1

Uco Bank 2007-Apr 24 23.92

Uco Bank 2007-Mar 21.5 23.16

Uco Bank 2007-Feb 21.3 22.26

Uco Bank 2007-Jan 23.15 21.98

Uco Bank 2006-Dec 21.2 21.88

Uco Bank 2006-Nov 22.65 22.33

Uco Bank 2006-Oct 23.2 22.35

Uco Bank 2006-Sep 22.7 22.85

Uco Bank 2006-Aug 18.9 21.6

Uco Bank 2006-Jul 17.3 19.63

Uco Bank 2006-Jun 16.9 17.7

Uco Bank 2006-May 24.1 19.43

Uco Bank 2006-Apr 25.7 22.23

Uco Bank 2006-Mar 26.5 25.43

Uco Bank 2006-Feb 26.45 26.88


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Uco Bank 2006-Jan 26.05 26.33

Uco Bank 2005-Dec 25.2 25.9

Uco Bank 2005-Nov 25.3 25.52

Uco Bank 2005-Oct 25.95 25.48

Uco Bank 2005-Sep 30.05 27.1

Uco Bank 2005-Aug 31.25 29.08Uco Bank 2005-Jul 31 30.77

Uco Bank 2005-Jun 26.95 29.73

Uco Bank 2005-May 28.15 28.7

Uco Bank 2005-Apr 28.15 27.75

INFERENCE


The closing price of UCO BANK as on APRIL 2005 is 28.15 which is above its moving

average (27.75). Hence it has been trending up.

Therefore the security generates buy signal


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45

MOVING AVERAGE OF BANK OF INDIA


Bank of India 2010-Mar 340.75

Bank of India 2010-Feb 333.6

Bank of India 2010-Jan 364.65 346.33

Bank of India 2009-Dec 385 361.08

Bank of India 2009-Nov 383.55 377.53

Bank of India 2009-Oct 333.6 367.38

Bank of India 2009-Sep 412.05 376.4Bank of India 2009-Aug 337.4 361.02

Bank of India 2009-Jul 329.65 359.7

Bank of India 2009-Jun 352.25 339.76

Bank of India 2009-May 337.85 339.92

Bank of India 2009-Apr 235.15 308.42

Bank of India 2009-Mar 219.9 264.3

Bank of India 2009-Feb 225.25 226.77


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Bank of India 2009-Jan 249.15 231.43

Bank of India 2008-Dec 287.7 254.03

Bank of India 2008-Nov 250.35 262.4


Bank of India 2008-Sep 282.6 257.88

Bank of India 2008-Aug 267.35 263.55

Bank of India 2008-Jul 271.5 273.82

Bank of India 2008-Jun 216.65 251.83

Bank of India 2008-May 295 261.05

Bank of India 2008-Apr 342.65 287.77


Bank of India 2008-Feb 359.55 318.36

Bank of India 2008-Jan 354.85 322.43

Bank of India 2007-Dec 365.45 359.95

Bank of India 2007-Nov 350.7 357



Bank of India 2007-Aug 244.6 292.93Bank of India 2007-Jul 258.55 260.02

Bank of India 2007-Jun 232.75 245.3

Bank of India 2007-May 210 233.76

Bank of India 2007-Apr 191.65 211.46


Bank of India 2007-Feb 161.8 173.75

Bank of India 2007-Jan 190.9 173.5

Bank of India 2006-Dec 207.9 186.86

Bank of India 2006-Nov 200.95 199.91



Bank of India 2006-Aug 142.65 159.46Bank of India 2006-Jul 110.9 138.56

Bank of India 2006-Jun 101.9 118.48

Bank of India 2006-May 114.05 108.95

Bank of India 2006-Apr 121.3 112.41

Bank of India 2006-Mar 132 122.45

Bank of India 2006-Feb 133.65 128.98

Bank of India 2006-Jan 129.75 131.8

Bank of India 2005-Dec 127.55 130.32

Bank of India 2005-Nov 110.7 122.66

Bank of India 2005-Oct 106.75 115

Bank of India 2005-Sep 122.55 113.33

Bank of India 2005-Aug 118.75 116.01

Bank of India 2005-Jul 140.85 127.38

Bank of India 2005-Jun 102.65 120.75

Bank of India 2005-May 101.2 114.9

Bank of India 2005-Apr 81.95 95.26


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INFERENCE


The closing price of BANK OF INDIA as on APRIL 2005 is 81.95 which is below its




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MOVING AVERAGE OF ANDHRA BANK


Andhra Bank 2010-Mar 108.1

Andhra Bank 2010-Feb 98.85

Andhra Bank 2010-Jan 106.05 104.33

Andhra Bank 2009-Dec 104.35 103.08

Andhra Bank 2009-Nov 114.35 108.25

Andhra Bank 2009-Oct 112.55 110.41

Andhra Bank 2009-Sep 105.8 110.9

Andhra Bank 2009-Aug 89.35 102.55

Andhra Bank 2009-Jul 92.25 95.8

Andhra Bank 2009-Jun 82 87.86

Andhra Bank 2009-May 94.9 89.71Andhra Bank 2009-Apr 55.45 77.45

Andhra Bank 2009-Mar 44.95 65.1

Andhra Bank 2009-Feb 43 57.8

Andhra Bank 2009-Jan 55.05 47.66

Andhra Bank 2008-Dec 55.1 51.05

Andhra Bank 2008-Nov 55 55.05

Andhra Bank 2008-Oct 42.35 50.8

Andhra Bank 2008-Sep 55 50.78

Andhra Bank 2008-Aug 55.95 51.1

Andhra Bank 2008-Jul 53.4 54.78Andhra Bank 2008-Jun 54.95 54.76

Andhra Bank 2008-May 75.75 61.36

Andhra Bank 2008-Apr 81.85 72.18


Andhra Bank 2008-Feb 90.55 82.16



Andhra Bank 2007-Nov 100.05 98.96


Andhra Bank 2007-Sep 104.55 97.66


Andhra Bank 2007-Jul 85.15 91.65

Andhra Bank 2007-Jun 86.2 85.53






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Andhra Bank 2006-Nov 89.45 88.03


Andhra Bank 2006-Sep 95.25 92.66

Andhra Bank 2006-Aug 87.35 91.96Andhra Bank 2006-Jul 73.9 85.5








Andhra Bank 2005-Nov 92.8 92.65

Andhra Bank 2005-Oct 86.7 90.6Andhra Bank 2005-Sep 103.8 94.43


Andhra Bank 2005-Jul 109.8 102.56




INFERENCE


The closing price of ANDHRA BANK as on APRIL 2005 is 93.2 which is below its




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50

MOVING AVERAGE OF I C I C I B A N K


ICICI BANK 2010-Mar 952.7

ICICI BANK 2010-Feb 871.85

ICICI BANK 2010-Jan 830.4 866.98

ICICI BANK 2009-Dec 875.7 859.31

ICICI BANK 2009-Nov 864.3 856.8

ICICI BANK 2009-Oct 789.6 843.2ICICI BANK 2009-Sep 904.8 852.9

ICICI BANK 2009-Aug 749.5 814.63

ICICI BANK 2009-Jul 759.05 804.45

ICICI BANK 2009-Jun 722 743.51

ICICI BANK 2009-May 740.7 740.58

ICICI BANK 2009-Apr 477.75 646.81


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ICICI BANK 2009-Mar 332.6 517.01

ICICI BANK 2009-Feb 328.1 379.48

ICICI BANK 2009-Jan 416.3 359

ICICI BANK 2008-Dec 448.35 397.58

ICICI BANK 2008-Nov 351.4 405.35

ICICI BANK 2008-Oct 399.35 399.7ICICI BANK 2008-Sep 534.85 428.53

ICICI BANK 2008-Aug 671.5 535.23

ICICI BANK 2008-Jul 634.85 613.73

ICICI BANK 2008-Jun 630.2 645.51

ICICI BANK 2008-May 788.3 684.45

ICICI BANK 2008-Apr 879.4 765.96

ICICI BANK 2008-Mar 770.1 812.6

ICICI BANK 2008-Feb 1,090.95 913.48

ICICI BANK 2008-Jan 1,145.65 1002.23

ICICI BANK 2007-Dec 1,232.40 1156.33ICICI BANK 2007-Nov 1,184.65 1187.56

ICICI BANK 2007-Oct 1,257.00 1224.68

ICICI BANK 2007-Sep 1,063.15 1168.26

ICICI BANK 2007-Aug 884.65 1068.26

ICICI BANK 2007-Jul 927.05 958.28

ICICI BANK 2007-Jun 955.3 922.33

ICICI BANK 2007-May 918.9 933.75

ICICI BANK 2007-Apr 865.9 913.36

ICICI BANK 2007-Mar 853.1 879.3

ICICI BANK 2007-Feb 831.9 850.3ICICI BANK 2007-Jan 940.5 875.16

ICICI BANK 2006-Dec 890.4 887.6

ICICI BANK 2006-Nov 871.45 900.78

ICICI BANK 2006-Oct 776.85 846.23

ICICI BANK 2006-Sep 699.05 782.45

ICICI BANK 2006-Aug 596.5 690.8

ICICI BANK 2006-Jul 554.05 616.53

ICICI BANK 2006-Jun 487.4 545.98

ICICI BANK 2006-May 536.05 525.83

ICICI BANK 2006-Apr 577.05 533.5

ICICI BANK 2006-Mar 589.25 567.375

ICICI BANK 2006-Feb 615.1 593.76

ICICI BANK 2006-Jan 609.15 604.5

ICICI BANK 2005-Dec 584.7 602.98

ICICI BANK 2005-Nov 537.15 577

ICICI BANK 2005-Oct 497.7 539.85

ICICI BANK 2005-Sep 600.35 545.06


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ICICI BANK 2005-Aug 481.7 526.58

ICICI BANK 2005-Jul 536 539.35

ICICI BANK 2005-Jun 421.55 479.75

ICICI BANK 2005-May 392.05 449.86

ICICI BANK 2005-Apr 360.2 391.26

INFERENCE


The closing price of ICICI BANK as on APRIL 2005 is 360.2 which is below its moving

average (391.26). Hence it has been trending down.



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THE TABLE SHOWING THE CORRELATION ANALYSIS OF BSE & NSE

SHARE VALUS TOWARDS SCHEDULE BANKS


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From the above table it is found that:

ALLAHABAD BANK

It is found that the ALLAHABAD BANK has LOW correlation

The coefficient of determination is 0.99 that is 99% of the share price movements areexplained by the market indices.

UNION BANK

It is found that the UNION BANK has LOW correlation

S.NO BANK BSE(X) NSE(Y) R R^2

1 ALLAHABAD BANK 0.87407294

9

-0.01766 0.996 0.992016

2 UNION BANK 70.6304491

1

-70.4649 0.992 0.984064

3 SYNDICATE BANK 1.050798 3.279109 0.990 0.980100

4 CANARA BANK -44.6801 -45.4077 0.997 0.994009

5 IOB BANK 37.14347 40.31329 0.954 0.910116

6 FEDERAL BANK -11.286 -10.5881 0.993 0.986049

7 UCO BANK -11.0093 -10.4774 0.999 0.998001

8 BANK OF INDIA -81.0803 -79.1967 0.992 0.984064

9 ANDHRA BANK 40.28888 43.86577 0.993 0.986049

10 ICICI BANK -35.6347 -37.1959 0.992 0.984064


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The coefficient of determination is 0.98 that is 98% of the share price movements are

explained by the market indices.

SYNDICATE BANK

It is found that the SYNDICATE BANK has LOW correlation



CANARA BANK

It is found that the CANARA BANK has LOW correlation



IOB BANK

It is found that the IOB BANK has LOW correlation



FEDERAL BANK


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It is found that the FEDERAL BANK has LOW correlation



UCO BANK

It is found that the UCO BANK has LOW correlation



BANK OF INDIA

It is found that the BANK OF INDIA has LOW correlation



ANDHRA BANK

It is found that the ANDHRA BANK has LOW correlation



ICICIBANK

It is found that the ICICI BANK has LOW correlation


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BETA FOR BANKING INDUSTRY


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58

ALLAHABAD BANK

The beta value of ALLAHABAD BANK is 0.985 which is less than 1. Hence the share is

less volatile and less risky.

UNION BANK

S.NO BANK COVARIENCE VARIENCE BETA

1 ALLAHABAD BANK 208.1035 211.1001 0.985805

2 UNION BANK 134.5898 137.6983 0.977425

3 SYNDICATE BANK 211.8874 212.3227 0.99795

4 CANARA BANK 129.9752 133.6267 0.972674

5 IOB BANK 212.9854 220.7114 0.964995

6 FEDERAL BANK 190.683 195.0913 0.977404

7 UCO BANK 195.841 199.215 0.983063

8 BANK OF INDIA 205.0056 207.6225 0.987396

9 ANDHRA BANK 187.254 185.5904 1.008964

10 ICICI BANK 203.702 210.9513 0.965635


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The beta value of UNION BANK is 0.97 which is less than 1. Hence the share is less

volatile and less risky.

SYNDICATE BANK

The beta value of SYNDICATE BANK is 0.997 which is less than 1. Hence the share is

less volatile and less risky.

CANARA BANK

The beta value of CANARA BANK is 0.9726 which is less than 1. Hence the share is less

volatile and less risky

INDIAN OVERSEAS BANK

The beta value of INDIAN OVERSEAS BANK is 0.9649 which is less than 1. Hence the

share is less volatile and less risky

FEDERALBANK

The beta value of FEDERAL BANK is 0. 977 which is less than 1. Hence the share is less


UCO BANK

The beta value of UCO BANK is 0. 987 which is less than 1. Hence the share is less


BANK OF INDIA


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The beta value of BANK OF INDIAis 0. 9873 which is less than 1. Hence the share is less


ANDHRA BANK

The beta value ofANDHRA BANK is 1.008 which is more than 1. Hence the share is high

volatile and high risky

ICICI BANK

The beta value of ICICI BANK is 0.965 which is less than 1. Hence the share is less


FINDINGS AND SUGGESTION:


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ALLAHABAD BANK

It is found that the ALLAHABAD BANK has low correlation and the coefficient of

determination is 0.98 that is 98% of the share price movements are explained by the market

indices. The beta is less than one so the share is less risky and less volatile.

It is found that the closing price of the company is below its moving average. So the

company is in down trend.

Even though the company is less risky one the company is in down trend. So it is better to

sell the share.

UNION BANK

It is found that the UNION BANK has low correlation and the coefficient of determination

is 0.97 that is 97% of the share price movements are explained by the market indices. The beta is

less than one so the share is less risky and less volatile.

It is found that the closing price of the company is above its moving average. So the


As the company has low risk and the trend is in down trend direction. So it is better to sell the

share.

SYNDICATE BANK


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It is found that the SYNDICATE BANK has low correlation and the coefficient of






share.

CANARA BANK

It is found that the CANARA BANK has low correlation and the coefficient of


indices. The beta is more than one so the share is less risky and less volatile.



Even though the company has high risk the trend is in down trend direction. So it is better to

sell the share.

INDIAN OVERSEAS BANK


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It is found that the INDIAN OVERSEAS BANK has low correlation and the coefficient of





Even though the company is less risky one the company is in down trend. So it is better to

sell the share.

FEDERALBANK

It is found that the FEDERALBANK has low correlation and the coefficient of






share.

UCO BANK


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It is found that the UCO BANK has low correlation and the coefficient of determination is

0.98 that is 98% of the share price movements are explained by the market indices. The beta is

more than one so the share is less risky and less volatile.


company is in upward trend.

Even though the company has high risk the trend is in upward direction. So it is better to buy

the share.

BANK OF INDIA

It is found that the BANK OF INDIA has low correlation and the coefficient of






share.

ANDHRA BANK


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It is found that the ANDHRA BANK has low correlation and the coefficient of

determination is 1.008 that share price movements are explained by the market indices. The beta is

more than one so the share is high risky and high volatile.



Even though the company has high risk the trend is in down trend direction. So it is better to

sell the share.

ICICI BANK

It is found that the ICICI BANK has low correlation and the coefficient of determination is

0.96 that is 96% of the share price movements are explained by the market indices. The beta is less

than one so the share is less risky and less volatile.




share.

CONCLUSION:


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Equity market is often consider as the main engine deriving the economy equity

market allow savers to acquire stake in firm and sell it if they need access to their savings or if they

want to alter their portfolio at the same time it allows firms to rise permanent capital for asset

creation. By incorporating information about future earnings potential in current stock prices, the

equity market servers as a barrow meter to the stake of the economy. This makes the equity market

an important constitutes of financial markets.

Banking industry is characterized by wide price fluctuations and heavy trading it is

caused by any news from the company. A recommendation from well known analysis a popular

IPO or unexpected earning result.

Wide price fluctuations are a daily occurrence on the worlds stock markets as

investors react to economic business and political events market have been showing extremely

erratic movements which are in no way tandem with the information that is fed to the markets.

REFERENCE


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.

BOOKS:

Richard I. Levin & David S. Rubin, STATISTICS FOR MANAGEMENT, Pearson

Education, Seventh Edition, 2002.

S.P. Gupta, statistical methods, thirty fifth revised edition, 2007

C.R. Kothari, Research Methodology Methods and Techniques Wishwa Prakashan,

Second Edition.

WEBSITES:

www. nseindia.com

www.moneycontrol.com

www.equitymarket.com

www.investmentpedia.com

www.yahoofinance.com

dinesh finance

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