jagadish project part 2
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About Dhwaja FINANCE
Dhwaja Share and Securities Private Ltd.
(previously known as Dhwaja Securities and services privateltd.) promoted by Mr. Gaurang Shah and Mr. Sunil Anandparain the year 2005 to carry on the business as share & Stockbrokers and/or sub-brokers.
In the process the company started its activity as clientto main brokers of The Bombay Stock Exchange Ltd and TheNational Stock Exchange of India Ltd. Subsequently the
company became sub broker of M/s Twin Earth Securities P.Ltd. main broker of The Bombay Stock Exchange Ltd and TheNational Stock Exchange of India Ltd. in the year 2007. Thecompany has performed as sub broker of M/s Twin EarthSecurities P. Ltd. for more then two years. In the MonthNovember of 2009 the company had inducted directornamely Mr. Hemal Shah.
The company has plans to go retail and expand itsactivities in Maharashtra and Gujarat to begin with in additionto the existing retail and HNI client base. The company hasalso procured a business premises in Kandivli of aprox 6000sq ft for its new operation as a Head office. The company isalso in the process of acquiring the required infrastructure forthe proposed new activity
DHWAJA FINANCE is a well-diversified financial
services entity offering clients unbiased advice on structuringa complete investment portfolio. Maintain over three decadesof experience and excellence in the industry; we cultivate acustomerfirst attitude, ethical and transparent businesspractice, professionalism, research based investing andimplementation of cutting edge technology.
The DHWAJA Finance Group is a clearing cum trading
member of various Equity and Commodity Exchanges and
market segments through these entities:
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DHWAJA Finance & Securities (P) Ltd.
Member: The National Stock Exchange (NSE);
Member: Bombay Stock Exchange Ltd. (BSE);
Cash & Derivatives Segments
DHWAJA Commodities (P) Ltd.
Member: Multi-Commodity Exchange (MCX)
Member: National Commodity & Derivatives Exchange
(NCDEX)
Member: National Multi-Commodity Exchange of India
Limited
Why DHWAJA?
We are focused on single set of goals: YOURS. Thedifference in our service and other such firms is the personaltouch that we lent to every transaction. At Dhwaja Finance,customers are not portfolios or ID numbers. We recognizeyou for the person you are and treat your association with usas a relationship. Our investment solutions, advice, and even
personal dealings are tailor made for you. Our relationshipwith you is based on understanding your needs andobjectives and collaborating with you to structurepersonalized financial strategies.
We have made a commitment to help every kind ofinvestors, regardless of account size, to treat each investoras our most important client.
Our Vision:
To be a leading wealth management service provideracting solely in the financial interest of our clients through anationwide network of qualified professionals and businessassociates
Our Philosophy:
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Our business is built upon three importantcornerstonesOur Clients, Business Associates andEmployees. Our Philosophy is unique and clearly defined:
Towards our Clients:
The client is the driving force behind what we do. Ourgoal is to provide the highest quality of products andservices, along with value- added advice and guidance basedon clients needs. We look to develop long term relationshipswith our clients built on strong ethics and trust.
Towards our Business associate:
The power of partnerships engenders involvement,respect and mutual support. This is precisely the relationshipthat we foster with our Business Associates. We provide acomplete platform built upon the best infrastructure andtechnology to enable our Business Associates to efficientlyservice the financial needs of our investing clients.
Towards our Employees:
Our employees are what set us apart. We are all herefor one reason to serve our clients best interests. It isleadership and accountability across our organization that weestablish a common direction, encourage creativecollaboration and providing an inspiring environment for ourpeople
Our Values:
Upholding these values is the primary responsibility ofleaders at every level within Dhwaja.
Partnership: Relationships among our staff
members as well as our clients are driven by the
power of partnership. The power of partnership
engenders involvement, respect, contribution and
mutual support. We encourage free exchange of ideasand demand teamwork.
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Striving for excellence: While serving our clients
we constantly strive for excellence to ensure that
they derive complete satisfaction in their dealings
with us.
Client focus: We aim to provide the highest
quality of products and services to best serve the
changing needs of clients.
Teamwork: We strive for seamless integration of
services through cooperation and collaboration within
and across workgroups and teams.
Meritocracy: We invest in our employeesdevelopment and actively strive to be the best at
attracting and retaining talented people. Our success
calls for entrepreneurial spirit and initiative from each
individual.
Integrity: At Dhwaja, our goal is to act in ways
that help us to exemplify the highest standards of
personal and professional ethics in all aspects of ourbusiness.
Privacy: We respect our clients right to privacy
and use information with appropriate discretion.
Product OF DHWAJA
Equity :-
A corporate member of NATIONAL STOCK EXCHANGE inboth Capital Market and Derivatives segments. The companyis also member of other premier exchange of the country i.e.,BSE.
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We undertake buying and selling of shares for individuals,HNIs and corporate besides for institutional client; provideadvisory board services to clients in taking investmentdecisions in purchase and sale of shares. Our research teamextends advisory to clients (HNIs and corporate in taking
investment decisions in buying & selling of Shares/Stocks,etc.
EQUITY investing with DHWAJA
Why invest in Stocks?
Although past performance cannot guarantee future marketresults, stocks historically have outperformed all other longterm financial assets. They are the only financial assets thathave significantly outpaced inflation overtime.
FEATURES of EQUITY investing withDHWAJA
Growth of capital:
Shares offer capital growth over the long term, depending onthe company concerned.
Potentially Higher Return:
Many investors worried about day-to-day market volatility,shun stocks. But the stock market has provided considerablyhigher return over fixed deposits and other fixed-income
investments over a period of time.
Risk:
Simply stated, higher returns are associated with higherrisks. You, as an investor, need to understand your risktolerance level and certain principles of investing which canhelp you diversify and mitigate this risk.
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Benefits of Equity investing with Dhwaja
The role of a full-service brokerage firm goes far beyondexecuting buy-and-sells transactions. At Dhwaja Finance, wehelp you assimilate the massive amount of information
trends in the economy, the markets, specific industries andindividual companies that may affect your particularinvestments decisions.The role of Dhwaja Finance is to help you, the investors,make deliberate, thoughtful decisions that match yourpersonal needs with suitable investment alternatives.
COMMMODITY Trading with Dhwaja
Why invest/trade in commodities?
Of late, commodities have come to be accepted as a separateasset class with a unique and distinct source of returns in
India, along with traditional avenues like stocks, bonds andreal estate. Commodity prices impact you in every sphere oflife whether you are a producer, trader or a consumer. Youcan now proactively participate in the Commodity markets byinvesting and trading in a range of commodities. In theprocess of the company started its activity as a main brokerof Multi Commodity Exchange of India Ltd. (MCX), and alsoadmitted in National Multi Commodities Exchange of IndiaLtd. (NMCE) as a trading cum clearing member and in
National Commodities and Derivatives Exchange of India Ltd.(NCDEX) as a trading member.
COMMMODITIES offered on MCX & NCDEX
Precious Metals: Gold, Silver
Other Metals: Aluminum, Copper, Nickel, Steel, Teen
Energy: Crude oil, Brent crude
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Agricultural Products: Chana, Guar Gum, Guar seed,
Gur, Jeera, Maize, Kapas, Raw Jute, Red chilly, pepper,
cashew, Castor seed, Crude Palm oil, Expeller Mustard
oil, Mustard seed, Ground Nut oil, RBD palmolein, Soya
Bean, Soy seed, Refined Soya oil, Rubber, Sugar,Turmeric,YellowPeas.
Participate in COMMMODITIES Markets as...
Hedger:One who wants to hedge the price risk in the
commodity he is exposed to.
Investors: One who sees participation in the
commodities market only as an investment opportunity
to diversify the risk of his portfolio?
Arbitrageur: One who is interested in taking advantage
of any mispricing arising in the markets?
Speculator:One who sees to create a trading positionbased on an informed opinion of the markets.
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The membership ID's & SEBI registrationnumbers are as under:
SEBIBrokerRegn No.
Exchange TradeName
RegistrationNo.
CERT.DT.
INB231372930
NseCapitalMarket
DHWAJASHARES &SECURITI
ES PVTLTD
13729 26/03/2010
INF231372930
NSEFuture &Option
DHWAJASHARES &SECURITIES PVTLTD
13729 26/03/2010
INE23137293
NSECurrency
Derivetives
DHWAJASHARES &
SECURITIES PVTLTD
13729 26/03/2010
INB011372936
BSECapitalMarket
DHWAJASHARES &SECURITIES PVTLTD
3301 26/03/2010
INF011372936 BSE Future& Option DHWAJASHARES &SECURITIES PVTLTD
3301 26/03/2010
INE261372930
MCX StockExchange
DHWAJASHARES &SECURITIES PVT
LTD
13729 26/03/2010
MCX/TC MCX DHWAJA 35780 -
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M/CORP/1549
COMMODITYSERVICESPVT LTD
NCDX/P
M/CORP/0999
NCDX DHWAJA
COMMODITYSERVICESPVT LTD
1024 -
MC/TCM/CORP/0360
NMCE DHWAJACOMMODITYSERVICESPVT LTD
CL0434
-
Contact us:-
Head Office :
603/Sanjar Enclave,Khajuria LaneOpp Milap Cinema.Kandivali-West.Mumbai-400067.Board Line : 42552700/701
Register Office:
103, Laxmi villa,
M.G.Road,Opp.Hanuman Temple,Kandivali (West)Mumbai- 400067.Tel : 2862 20 91/2861 38 70.
Surat Branch:G-13,Empire State Building,Udhna DarwajaRing Road.Surat-395001.Board Line :
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ResearchMethodol
ogy
(a)Statement of Problem: It is risk return to construct and
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Analyses of the portfolio
Under different sectors.
(b)Objective of study: (1) To construct the portfolio byDoing fundamental and price
Trend analysis
(2) To construct the portfolio by
Considering risk and return
Associated with it.
(3) To measure risk and return ofConstructed portfolio and to
Revise it if it is necessary.
(c)Period covered: 2 month
(d) Sources of data:
Secondary data: Expert guide,
magazine, books, website,
nseindia.com, Bseindia.com
(e) Scope of Study:
a) Study covers the scripts from
different sectors.
b) Study emphasis more on
fundamental and technical
analysis rather than government
interferences.
c) Study covers only equity share of
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different sectors. It do not cover
mutual fund and any other
instrument under different sectors.
(f) Selection of Sample:
Project has covered Top 20
companies under different sector. Top 20 companies are
selected on the basis of their market capitalization and total
turnover.
Method : Non probability ( Judgment Sampling)
(g) Significance of Study:
There are so many risk which are associated with
investment so investor have to invest money in the
stock market . After analysis risk & return. Once the
investment has been done, it is necessary to review
risk & return, otherwise our investment is not giving
proper return and minimize risk.
This project give idea how to select scripts for
portfolio, how to calculate .
(h) Data Collection:
Annual report of selected companies for ratio analysis.
Closing price of selected companies of last 1 year
(monthly).
Closing price of index of last 1year(monthly).
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(i) Tools & Techniques:
Sharp single index model for portfolio construction.
Ratio analysis.
Calculation of
(j) Chapter planning:
a. About company
b. About capital market
c. Research Methodology
d. About different sector
e. Fundamental Analysis of companies
f. Portfolio construction &analysis.
g. Portfolio Review.
h. Conclusion.
(k)Limitation of study:
Some of scripts are selected. They may not give true
idea.
Only financial position is covered for portfolio
construction.
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Techniques which can used may not fully scientific.
Introductionabout
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Capital
Market
A capital market is a market for securities (debt or equity),
where business enterprises (companies) and governments
can raise long-term funds. It is defined as a market in which
money is provided for periods longer than a year, as the
raising of short-term funds takes place on other markets
(e.g., the money market). The capital market includes the
stock market (equity securities) and the bond market (debt).
Financial regulators, such as the UK's Financial Services
Authority (FSA) or the U.S. Securities and Exchange
Commission (SEC), oversee the capital markets in their
designated jurisdictions to ensure that investors are
protected against fraud, among other duties.
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CAPITALMARKET
Capital markets may be classified as
primary markets and secondary markets. In primary
markets, new stock or bond issues are sold to investors via a
mechanism known as underwriting. In the secondarymarkets, existing securities are sold and bought among
investors or traders, usually on a securities exchange, over-
the-counter, or elsewhere.
Under a secondary market offering or
seasoned equity offering of shares to raise money, a
company can opt for a rights issue to raise capital. The
rights issue is a special form of shelf offering or shelf
registration. With the issued rights, existing shareholders
have the privilege to buy a specified number of new shares
from the firm at a specified price within a specified time. A
rights issue is in contrast to an initial public offering (primary
market offering), where shares are issued to the general
public through market exchanges
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INDUSTRIALSECURITIES
GOVERNMENTSECURITIES
LONG ERMS
LOAN
MARKET
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The securities market can be divided in to three parts:
1.) Industrial securities market
2.) Government securities market
3.) Long term loans market
1.) INDUSTRIAL SECURITIES MARKET :-
The industrial securities market consists of two
complementary parts i.e. the New Issue Market, and
Secondary Market.
It is a market for industrial securities namely:
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PRIMARYMARKET
SECONDARY
MARKET
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(i) Equity shares or ordinary shares or common stock.
(ii) Preference shares
(iii) Debenture or Bonds.
The corporate sector raises their capital through these abovethree types of securities. This is the physical or tangible asset
through which the market functions.
Company raises it capital in the primary market though:
I) Primary Market
Primary market is the market for those securities which
are issued first time in the market for the public. The NewIssue Market deals with new securities i.e. securities which
were not previously availably and are offered to the investing
public for the first time. Primary market is a market for New
issues or New financial claims. Hence, it is called New Issue
Market. The market, therefore,derives its name from the fact
that it makes available a New Block of Securities for public
subscription. In the Primary market, borrowers exchange
new financial securities for long term funds. It facilitates
capital formulation.
Companies raise ite capital in the primary market though:
(i) Public Issue
(ii) Right Issue
(iii) Primary placement/subscription
The most popular method of raising capital is sale of
securities to the public by new companies is called Public
Issue. Right Issue means, when existing company first
offered. The security to existing shareholders on a Pre
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emptive bases, while company want to raise additional
capital is called capital is called Right Issue. Private
placement imagine private sale of securities to small group
investors.II) Secondary Market
Secondary market is the market for those securities
which have already been available in the market and listed
on a stock exchange. The main benefit of Secondary market
is securities sold and purchased continuously among
investors without involvement of company. This marketconsists of all stock exchange recognized by the Government
of India. The stock exchange in India are regulated under the
securities contracts (Regulation) Act, 1956.
2.) GOVERNMENT SECURITIES MARKET :-
The government securities market (G-secs) is the
largest segment of the long term debt market in India,
accounting for nearly two-thirds of the issues in the primary
market and more than four fifths of the turnover in the
secondary market.
It is otherwise called Gilt-Edged securities market. It is
a market where Government securities are traded. In India
there are many kinds of Government Securities-short term
and long term. Long term securities are traded in this market
while short term securities are traded in the money market.
Securities issued by the Central Government, State
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Government, Semi Government authorities like city
Corporation, Port Trusts etc. Improvement Trusts, State
Electricity Boards, All India and State level financial
institutions and public sector enterprise are dealt in thismarket.
Participants in the G-secs Market
Banks are the largest holders of G-secs. About one
third of the net demand and time liabilities of the banks are
partly in government securities market mainly to meetstatutory liquidity requirements and partly for investment
purpose. Apart from banks, insurance companies, and
provident funds have substantial holdings of G-secs almost
one-fifth of the outstanding G-secs are held by these
institutions. Other investor in G-secs includes mutual funds,
primary and satellite dealers, and trusts.
Government securities are issued in denominations of
RS. 100. Interest is payable half- yearly and they carry tax
exemptions also. The role of brokers in marketing these
securities is practically very limited and the major participant
in this market in the commercial banks because they hold a
very substantial portion of these securities to satisfy their
S.L.R. requirements.
The secondary market for these securities is very
narrow since most of the institutional investors tend to retain
these securities until maturity.
The Government securities are in many forms. These are
generally:
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(i) Stock certificates of inscribed stock
(ii) Promissory Notes
(iii) Carrier Bonds which can be discounted.
Government securities are sold through the Public DebtOffice of the RBI while Treasury Bills are sold through
auctions.
Government securities offer a good soured of raising
inexpensive finance for the Government exchequer and the
interest on these securities influences the prices and yields in
this market. Hence this market also plays a vital role inmonetary management.
3.) LONG TERM LOANS MARKET :-
Development banks and commercial banks play a
significant role in this market by supplying long term loans to
corporate customers. Long term loans market may further be
classified into:
(i) Term loans market
(ii) Mortgages market
(iii) Financial Guarantees market.
(i) Term Loans Market
In India, many industrial financing institutions have
been created by the Government both at the national and
regional levels to supply long term and medium term loans to
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corporate customers directly as well as indirectly. These
development banks dominate the industrial finance in India.
Institutions like IDBI, IFCI, ICICI, and other state financial
corporations come under this category. These institutionsmeet the growing and varied long term loans. They also help
in identifying investment opportunities, encourage new
entrepreneurs and support modernization efforts.
(ii) Mortgages Market
The mortgage market refers to these centers which
supply mortgage loan mainly to individual customers. A
mortgage loan is a loan against the security of immovable
properly like real estate. The transfer of interest in a specific
immovable properly to secure a loan is called mortgage. This
mortgage may be equitable mortgage or legal one. Again it
may be a first charge of title deeds to properties as security
whereas in the case of a legal mortgage the title in the
property is legally transferred to the lender by the borrower.
Legal mortgage is less risky.
Similarly, in the first charge, the mortgages transfer his
interest in the specific property to the mortgagee as security.
When the properly in question is already mortgaged once to
another creditor, it becomes a second charge when it is
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subsequently mortgaged to somebody else. The mortgagee
can also further transfer his interest in the mortgaged
property to another, In such a case, it is called a sub
mortgage.The mortgage market may have primary market as well
secondary market. The primary market consists of original
extension of credit and secondary market has sales and re-
sales of existing mortgages at prevailing prices.
In India residential mortgages ate the most common
ones. The Housing and Urban Development Corporation andthe LIC play a dominant role in financing residential projects.
Besides, the Land Development Banks provides cheap
mortgages loans for the development of lands, purchase of
equipment etc. These development banks raise finance
through the sale of debentures which are treated as trustee
securities.
(iii) Financial Guarantees Market
A guarantees market is a centre where finance is
provide against the guarantee of a reputed person in the
financial circle. Guarantee is a contract to discharge the
liability of a third party in case of his default. Guarantee acts
as a security from the creditors point of view. In case the
borrower fails to repay the loan, the liability falls on the
shoulders of the guarantor. Hence the guarantor must be
known to both the borrower and the lender and he must have
the means to discharge his liability.
Though there are many types of guarantees, the
common forms ate:
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a) Performance Guarantee
b) Financial Guarantee
Performance guarantees cover the payment of earnest
money, retention money, advance payments, non-completionof contracts etc. On the other hand financial guarantees
cover only financial contracts.
In India, the market for financial guarantees is well
organized. The financial guarantees in India relate to:
A. Deferred payments for imports and exportsB. Medium and long term loans raised abroad
C. Loans advanced by banks and other financial
institutions.
These guarantees ate provided mainly by commercial
banks, development banks, Governments both central and
states and other specialized guarantee institutions like ECGC
(Export Credit Guarantee Corporation) and DICGO (Deposit
Insurance and Credit Guarantee Corporation). This guarantee
financial service is available to both individual and corporate
customers. For a smooth functioning of any financial system,
this guarantee service is absolutely essential.
Capital market is important as it plays an
important role in bringing rapid industrial development in a
country. The savings are invested profitably for economic
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development because of the services offered by capital
market. Mobilization of investable surplus and provision of
expert services to investors and companies are two
significant activities undertaken by the capital market.Capital market acts as a link between those who save and
those who need funds and are in a position to invest them
with safety and reasonable return. It is importance due to:
It enables the investors to adopt their investment to
their expectations which are constantly changing.
It acts as a link between those who save and those
who are interested in investing these savings.
It provided the capital to those enterprises which can
apply it profitably, productively and increase the
aggregate national income.
It provides proper flow of funds and brings about the
rational allocation of resources through the
conversion of financial assets into physical assets.
Thus, the capital market facilitates capital formation.
It provides incentives to saving and facilitates capital
formation by offering suitable rate of interest as the
price of capital.
It serves as an important source for technological up
gradation in industrial sector by utilizing the fund
invested by the public.
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It facilitated buying and selling of securities at listed
price by providing continuously marketability to the
investors.
The securities offered in the capital market are
transferable in character.
The changing business conditions in the economy are
immediately reflected on capital market. Booms and
depression can be identified by capital market. So
suitable monitory and fiscal policies can be taken by
government.
Capital market supplies securities of different kinds
with different maturity and yields in unable the
investors to diversify their risk by wider portfolio of
investment.
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Introductionabout
DifferentSectors
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INTRODUCTION ABOUT SECTOR
A. Meaning of sector:
There are many companies or scrip that manufacturer thesame products Provide services are specified under theparticular name that called sector.
B. List of the sector:
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The
meaning
of
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Banking
Chemicals
Infrastructure
Pharmaceutical
Fertilize
Agro Inputs
Auto Ancillaries
Auto Mobiles
Aviation
Breweries & Distilleries
Cement
Cigarettes
Textiles
Consumer Durables
Courier & Logistic Services
Cycle & Accessories
Diversified
Dye Stuff
Engineering
Financial Institutions
About Banking Sector
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investment banking is not the financial investment in the
banking sector. But in fact, investment banking is a kind of
banking function which is used to help clients in creating
wealth and funds. The commercial banks use this type ofbanking in accord with sensible and practical use of the
available resources. Not only this, investment banking and
people engaged in this sector also provides advice on how to
transact in business they are currently in.
Through investment banking, companies can create funds in
two ways. They can either draw on public funds from capital
market by releasing the stock i.e. corporate finance or they
can go to venture capitalists or private equities to become
share holders in their company. The field of investment
banking is also engaged in giving advice and consultation on
how to manage various takeovers and merging i.e. [M&A]
merger and acquisitions. They also provide companies with
ideas on how to declare public offerings and manage their
talents. The handling of mergers and acquisitions come under
the corporate finance function of the investment banking.
The margin between investment banking and other forms ofbanking has been very unclear for a long time now and for
the same time; the function of this banking sector has grown
to covering every field of wealth management process of
corporate as well as individual persons.
Corporate Finance: this is the sector where investment
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banking works and supports companies the most in getting
extra money. Lets take an example that a company needs
more money to finance the market research of a product to-
be launched to stay forward in competition. Here, investmentbanking can help you by getting your companys shares sold
and raising funds for you. The other way, how an investment
bank can get you money is by trading in stocks on behalf of
their clients.
[M&A] Merger and Acquisitions:
This point doesnt have any explanation and it can be defined
only through an example. Lets take an example of a
company who is going strong in business and market and
wish to buy another company just to add more authority to
their name and business. Professionals from investment
banking sector makes them realize that on merging; both
these companies can be a great group and can acquire major
part of the market and also the business. They also tell them
what are the other benefits of getting merged and also what
is the right time according to market conditions for both the
companies to get merged into each other. Among other
import The last decade has seen many positive developments
in the Indian banking sector. The policy makers, which
comprise the Reserve Bank of India (RBI), Ministry of Finance
and related government and financial sector regulatory
entities, have made several notable efforts to improve
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regulation in the sector. The sector now compares favorably
with banking sectors in the region on metrics like growth,
profitability and non performing assets (NPAs). A few banks
have established an outstanding track record of innovation,growth and value creation. This is reflected in their market
valuation. However, improved regulations, innovation, growth
and value creation in the sector remain limited to a small
part of it. The cost of banking intermediation in India is
higher and bank penetration is far lower than in other
markets. Indias banking industry must strengthen itselfsignificantly if it has to support the modern and vibrant
economy which India aspires to be. While the onus for this
change lies mainly with bank managements, an enabling
policy and regulatory framework will also be critical to their
success.
The failure to respond to changing market realities has
stunted the development of the financial sector in many
developing countries. A weak banking structure has beenunable to fuel continued growth, which has harmed the long-
term health of their economies. In this white paper, we
emphasize the need to act both decisively and quickly to
build an enabling, rather than alimenting, banking sector in
India.
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Influenced by the global financial turmoil and repercussion of
the subprime crisis, the global banking sector has been
witness to some of the largest and best known names
succumb to multi-billion dollar write-offs and face nearbankruptcy. However, the Indian banking sector has been
well shielded by the central bank and has managed to sail
through most of the crisis with relative ease. Further with the
economic buoyancy the world over showing signs of cooling
off, the investment cycle has also been wavering. Having
said that, the latent demand for credit (both from the foodand non food segments) and structural reforms have paved
the way for a change in the dynamics of the sector itself.
Besides gearing up for the compliance with Basel II accord,
the sector is also looking forward to consolidation and
investments on the FDI front.
Public sector banks have been very proactive in their
restructuring initiatives be it in technology implementation or
pruning their loss assets. While the likes of SBI have made
already attempts towards consolidation, others are keen to
take off in that direction. Incremental provisioning made for
asset slippages have safeguarded the banks from witnessing
a sudden impact on their bottom lines.
Retail lending (especially mortgage financing) that formed a
significant portion of the portfolio for most banks in the last
two years lost some weight age on the banks' portfolios due
to their risk weight age. However, on the liabilities side, with
better penetration in the semi urban and rural areas the
banks garnered a higher proportion of low cost deposits
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thereby economizing on the cost of funds.
Apart from streamlining their processes through technology
initiatives such as ATMs, telephone banking, online banking
and web based products, banks also resorted to cross selling
of financial products such as credit cards, mutual funds and
insurance policies to augment their fee based income.
Understanding the expectations of stakeholders and then
responding appropriately is crucial to the industrys ability to
do business. Only by earning the trust and respect of
stakeholders will the industry maintain their license to
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operate in communities across the world.
Sustainability, UK approached TERI to execute a survey to
understand whether in India sustainable developmentimperatives are driving change in the chemical industry and
shaping the perceptions of the industrys stakeholders. And
most importantly, to explore what stakeholders believe a
WBCSD project should cover for the realization of a
sustainable chemical industry in India.
Survey Approach
The approach as provided by Sustain Ability was first to
identify the stakeholders and then categories them across
groups/ segments and undertake the interviews. The
essence of the interview was to understand views of the
stakeholders:
On the Indian chemical sector
Industrys response to address these issues,
Prescriptions to make the industry sustainable and
on
The WBCSD project its necessity & focus
The survey was distributed and administered as follows:
45 stakeholders were initially identified based on
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previous experience and existing database.
The target list was narrowed to 28 preferred targets
based on subsequent screening.
19 responses were received (interview + email) Annexure 01
A Stakeholder dialogue was organised to share the
survey findings and discuss the future of the Indian
chemical industry in general and the ideal
characteristics of a potential WBCSD project on
sustainable chemical sector, in specific.
The stakeholder dialogue saw 20 participants
deliberating on the subject.
Responses and Limitations:-
Representatives of 19 stakeholders responded to the survey
in a limited time frame of one and a half months, which was
a major constraint. As with many surveys of this nature
stakeholders that see them as leaders or early movers are
more likely to respond. Therefore the survey likely includes
the attitudes and approaches of some of the most activestakeholders in this area.
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While every effort was made to reach a diverse sample group
the findings presented here may not be representative of all
the stakeholders operating within the chemical sector inIndia. Given the limited time frame, TERI has analyzed,
consolidated and
Over the past four years, the Indian Economy
consistently recorded growth rates in excess of 8.5% per
annum resulting in rapidly increasing infrastructure
spending. Total infrastructure spending is expected to
increase from US$ 24 billion in 2005 to US$ 47 billion in
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2009. (FICCI)Total investment requirement in the
infrastructure sector over the next five years is US$ 445
billion
It is estimated that the Infrastructure Sector needs to
grow at a CAGR of 15% over the next five years to
support the growing requirements of virtually every other
sector of the Indian Economy. With the objective of
stimulating and mobilizing increased private sector
investments, either from domestic sources or foreign
avenues, the government
has offered various incentives:
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Liberalization of FDI Regulations
i. Barring aviation, 100% FDI under the automatic route is
now permitted in all infrastructure sectors.
ii.FDI under the automatic route is permitted up to 49% -
100% for various services in the aviation sector.
Extended tax holiday periods
Under section 80-IA of the Income Tax Act, 1961, a ten
year tax holiday is available to enterprises engaged in the
business of development, operation and maintenance of
infrastructure facilities, subject to compliance with the
conditions prescribed therein.
Introduction of Public Private
Partnerships
Based on resounding global success, the government has
introduced the concept of public-private partnershipsin
India, to combine the best practices of public and private
sectors to efficiently develop and maintain infrastructure
facilities. PPPs are aimed at inducing private sector
participation in activities which might otherwise prove to
be cost prohibitive e.g. development, operation and
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maintenance of toll roads.
The Industry has received an aggregate of US$ 6.6
billion in infrastructure investments over the pastsix years.
The Government has indicated that the Indian
infrastructure sector has the potential to absorb
US$ 150 billion (including the power sector) in FDI
over the next five years.
Roads
India has one of the largest road networks in the
world, aggregating to approximately 3.34 million
kilometers. (Economic Survey 2007-08)
The Government has laid down ambitious plans for
development and up gradation of the domestic road
network. Private sector participation through PPPs is
being actively encouraged to achieve greater
efficiencies in development, operation and
maintenance.
It is estimated that the total investment requirement
for development and up gradation of the countrys
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road network over the next five years is
approximately US$ 55 billion. (Economic Survey
2007-08)
The Indian Pharmaceutical Industry is capable to meet the
country's demand for every drug. The manufacturing units
within the country are meeting about 80% of the country's
drug requirements. The drug production sector is equipped
with technology and researched knowledge base. The
industry produces drugs worth rupees 18000 cores and is
growing at 9 per cent every year. It offers quality products
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with internationally accepted quality standards. There are
about 20,000 production units in India with products sold at
competitive lower prices than international drug prices.
India has various competitive advantages in Pharma
production over western world. It has a large pool of
educated manpower with technical and managerial skills
It has a well-developed research and development base
equipped with advanced technology. Low cost of researchover the Western countries gives India a potential advantage
for future developments.
The country has an open market policy where foreign capital
investment is permitted. Restriction on capital investment
has been removed in the recent years with a view to make
new investments profitable. Also, the country has a strong
legal framework, an essential for pharmaceutical industry.
The most promising fact about India is a 70 million middle
class population with good consumption power.
In this section Naukri hub researches in to the prospects of
Indian Pharmaceutical industry in detail.
Accounting for two percent of the world's pharmaceutical
market, the Indian pharmaceutical sector has an estimated
market value of about US $8 billion. It's at 4th rank in terms
of total pharmaceutical production and 13th in terms of
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value. It is growing at an average rate of 7.2 % and is
expected to grow to US $ 12 billion by 2010.
Over the last two years the pharmaceutical market value hasincreased to about US $ 355 million because of the launch of
new products. According to an estimate, 3900 new generic
products have been launched in the past two years. These
have been by and large launched by big brands in the
Pharma sector. And in the year 2005 Indian pharmaceutical
companies captured around 70% of the domestic market.
As in the present scenario, only a few people can afford
costly drugs, which have increased price sensitivity in the
pharmaceutical market. Now the companies are trying to
capture the market by introducing high quality and low pricemedicines and drugs.
With the Product Patent Act, which came into action in
January 2005, this industry is able to attract big MNCs to
India. Earlier these big firms had apprehensions in launching
new drugs in the Indian market.
At present, a large number of Indian pharmaceuticals
companies are looking for tie-ups with foreign firms for in-
license drugs. GlaxoSmithKline is among the top choices for
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the firms that wish to launch their product in India, but do
not have any branch over here.
Contract research and pharmaceutical outsourcing are the
new avenues in the pharmaceutical market. Contract
manufacturing is growing at a very fast pace and is estimated
to grow to US $30billion, whereas contract research is
estimated to reach US$6-10 billion.
Indian multinational companies like Dr.Reddy's Lab, Cipla,
Ranbaxy, etc have created awareness about the Indianmarket prospects in the international pharmaceutical market.
Approvals given by Foods and Drugs Administration (FDA)
and ANDA (Abbreviated New Drug Application)/DMF (Drug
Master File) have played an important role in making India a
cost-effective and high quality product manufacturer.
Furthermore, the changes that took place in the patent law,
change of process patent to product patent, have helped in
reducing the risk of loss for intellectual property.
Industry Strengths:
Capital Investment in Technology: Owing to the
availability of advanced technology at low costs, the
companies can produce drugs at lower costs.
Cost Effective: The filing cost of ANDAS and DMFs is
comparatively low for the Indian companies.
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Manpower: There is a large pool of technical experts
available at modest salaries.
Contract Research & Contract Manufacturing: There is a
good scope for contract research and contract
manufacturing.
Infrastructure: There is a well-developed infrastructure
for the pharmaceutical industry.
Generic Drugs: In the last few years, the generic drug-
manufacturing segment has received huge
investments, in the process making it more
competitive and efficient.
Fertilizer is key input in enhancing crop
production. Fertilizer consumption and food grain production
is closely correlated (Table 1). Presently fertilizer contributes
about50% to the total increase in food grain production.
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Increasing pressure of population and hiking land resources
demand for vertical expansion of agriculture where the role
of fertilizers will further increase. At the present level of
nutrition, additional 150 million tons of food grain productionhas to be achieved to feed almost 1.5billionpeople by 2040.
This estimate does not include demand for animal feed,
which will rise due to depleting grasslands. Thus, the crusade
of higher production of food grain has to continue with
increased vigor using fertilizers along with the other sources
of plant nutrients.
Table -1. All India Fertilizer Consumption and Foodgrain
Production (Million tons)
yearFertilizer Consumption
(N+P205+K20) Food grain Production
1951-52 0.05 51.99
1961-62 0.34 82.71
1971-72 2.66 105.171981-82 6.07 133.3
1991-92 12.73 168.37
2000-2001 16.63 196.07
Production of Fertilizers
India has become third largest country with a total capacity
of 11.757 million tons of N and 5.056 million tons of P2O5 in
year 2000-2001.Domesticproduction of nitrogenous fertilizers
was 10.942 million tons in 2000-2001, whereas production of
phosphatic fertilizers was 3.734million tons (Table 2), which
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are marginally high, compared to last years production. All
India capacity utilization has gradually improved over the
years and was maintained at almost cent per cent level.
However, during2000-01 restrictions were imposed oncapacity utilization for Urea at 92% as a consequence the
production of urea declined. The increase in production of
total N is observed due to increase in production of DAP and
other complexes which also have 'N'. Production of DAP
during 2000-01 was 10 % higher compared to previous year
(Table 3).
Imports of Fertilizers
The gap between demand and domestic supply is met
through imports. Imports of urea have declined substantially
during the past five years (Table 4). There have been
virtually no imports of urea during
200001. except some quantity vocative consumption. India
is presently self sufficient in respect of urea and DAP. The
entire quantity of potashis imported, mostly as MOP.
Growth in Fertilizer Industry
Fertilizer production is capital intensive and
presently the cost of production of indigenous material is high
and returns on investment are low. The Indian fertilizer
industry, which achieved phenomenal growth in eighties,
witnessed decline in the growth rate during the nineties.
In the recent past, the fertilizer industry has not
attracted any significant investment. Due to sufficient
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indigenous capacity and low international prices of urea the
Government of India in Feb. 2000 decided that no new
grassroots projects will be allowed during the next three
years. Even if the Government reviews its decision, theearliest a project could start would be by 2004-05. Lack of
availability of natural gas in the country has prompted
investors to collaborate for joint ventures abroad for urea
production. Gulf countries, due to abundant availability of
gas, nearness to Indian shores and investment friendly
environment, are becoming the first choice for joint ventures.Government is keen on implementation of Indo-Oman
Fertilizer Project. The financial closure is expected by October
2001 and the commercial production will begin 36 months
After that. India will purchase the entire production of 1.65
million tons per annum of urea, from this project on long
term basis.
As India does not have significant high-grade rock phosphate
reserve, it is mainly dependent on import of either rock
phosphate or pose acid or DAP. Most of the capacity of DAP is
based on imported phos acid and ammonia. There has been
some new capacity addition for NP/NPK complexes by way of
importing rock phosphate and converting it to pose acid and
then to DAP/NPK or production of pose acid at rock
Phos phatemines abroad in JV and importing phosphoric acid
for further conversion to DAP/NPK. Apart from thee existing
joint venture plants for phosphoric acidic Senegal, Jordan and
Morocco, some more JV projects are under negotiation.
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Fundamental ofCompanies
Portfolio construction have selectedfollowing companies from different sectorswhich are fundamentally sound.
No company's Name PriceEarningRatio(P/Eratio)
Earning PerShare(EPS)
BookValue(BV)
FaceValue(FV)
OperatingprofitMargin
(OPM)
GrossProfitMargin(GPM
)
NetProfitMargin(NPM)
1 CIPLA LTD 22.43 13.47 73.5 2 20.48 21.59 14.73
2 J.B.CHEMICALS &PHARMACEUTICALS LTD
11.63 11.98 72.6 2 22.09 21.59 17.05
3 SUNPHARMACEUTICALINDUSTRIES LTD
47.86 8.68 55.2 1 42.54 48.32 44.44
4 TORRENTPHARMACEUTICAL
LTD
20.95 54.51 104.1 5 21.3 20.74 14.29
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5 JUPITERBIOSCIENCE LTD
11.1 19.1 66.5 10 50.16 36.59 17.49
6 GUJARATNARMADA VALLEYFERTILIZERSCOMPANY
12.5 7.97 133.8 10 18.34 18.7 10.48
7 BHARATFERTILIZERINDUSRIES LTD
5.28 10.24 18.2 10 13.15 13.21 9.24
8 MANGLORECHEMICALS &FERTILIZERS LTD
6.57 4.77 28.8 10 6.67 5.28 4032
9 TATA CHEMICALSLTD
18.41 17.87 182.4 10 13.26 12.75 7.27
10 SPICE ISLANDSAPPARELS LTD
1.95 8.64 90.4 10 1.78 0.68 2.05
11 ALFA LAVAL INDIALTD
19.68 59.54 207.9 10 15.13 17.14 9.96
12 GEI INDUSTRIESSYSTEMS LTD
18.97 8.94 52.6 10 16.42 12.28 7.91
13 KULKARNI POWER& TOOLS LTD
4.42 13.59 57.5 5 13.4 8.82 3.3
14 SARASWATIINDUSTRIESSYNDICATE LTD
8.18 11330 563.2 10 5.95 6.06 3.04
15 YUKEN INDIA LTD 9.61 23.1 109.5 10 13.82 12.29 7.07
16 C & C
CONSTRUCTIONSLTD
5.11 19.54 246.1 10 21.27 11.1 1.88
17 DLF LTD 49.99 4.51 75.6 2 56.7 32.42 19.71
18 EXELONINFRASTRUCTURELTD
34.6 2.6 19.5 10 5.54 5.11 4.33
19 CONSOLIDATEDCONSTRUCTIONCONSORTIUM
10.17 5.06 87.5 2 9.74 7.47 3.35
20 PUNJ LLOYD LTD 5.73 11.06 107.6 2 8.88 8.06 2.2
21 STATE BANK OFINDIA
16.74 44.54 1038.57 10 64.27 27.36 11.14
22 FEDERAL BANKLTD
11.24 8.37 274.03 10 65.3 31.19
12.51
23 CORPORATIONBANK
5.76 26.66 402.6 10 74.91
26.94
13.98
24 ING VYSYA BANKLTD
14.62 20.19 183.79 10 14.05
13.68
12.05
25 HDFC BANK LTD 26.03 23.43 463.66 10 56.0
7
32.6 17.11
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PortfolioConstruction
&Analysis
Calculation of CIPLA LTD
Calculation of Ri
Month CLOSINGPRICE
Return
Jan 317.3 -5.45292Feb 315.3 -0.63032
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Mar 337.1 6.91405
Apr 342.55 1.616731
May 318.95 -6.88951
Jun 337.75 5.894341
Jul 326.6 -3.30126
Aug 303.35 -7.1188Sep 321.65 6.032636
Oct 352.25 9.513446
Nov 343.7 -2.42725
Dec 369.9 7.622927
summation 11.77408
Averagereturn
0.981173
Ri = Summation of Return12
Ri = 11.7740812
Ri = 0.981173
Calculation of
Month y X XY x2 Y2
Jan -5.4529201 -6.3376 34.55842643 29.7343376 40.16517
Feb -0.6303183 0.437646 -0.27585628 0.39730116 0.191534
Mar 6.9140501 6.684419 46.21640786 47.8040888 44.68146
Apr 1.6167309 0.17652 0.285385338 2.6138188 0.031159
May -6.889505 -3.4973 24.09466654 47.4652819 12.23111
Jun 5.8943408 4.463184 26.30752755 34.7432535 19.92001
Jul -3.301258 0.945658 -3.121861321 10.8983064 0.894269
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Aug -7.118799 0.575489 -4.096790978 50.6773106 0.331188
Sep 6.0326356 11.67429 70.42673746 36.3926923 136.289
Oct 9.5134463 -0.18327 -1.743529303 90.5056605 0.033588
Nov -2.427253 -2.55132 6.192700144 5.89155907 6.509234
Dec 7.622927 5.060332 38.57454143 58.109016 25.60696
Total 11.774076 17.44804 237.4183549 415.232627 286.8847
y 0.981173 1.454004
= (12)(237.41)-(17.44)(11.77)(12)(415.23)-(304.43)
= 0.842394
Calculation of
= y- x
= (0.9811) (0.8423)(1.4540)
= -0.2436
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Calculation of ei2
ei2 =
= (286.88)-(-0.2436)(11.77)- (0.8423)(237.41) 12
ei2 =18.1751
Calculation of 2i
Month Sensex Return (x-x) (x-x)2
Jan 16,357.96 -6.3376 -7.79161 60.70911
Feb 16,429.55 0.437646 -1.01636 1.032983
Mar 17,527.77 6.684419 5.230415 27.35725
Apr 17,558.71 0.17652 -1.27748 1.631965
May 16,944.63 -3.4973 -4.9513 24.51537
Jun 17,700.90 4.463184 3.00918 9.055165
Jul 17,868.29 0.945658 -0.50835 0.258415
Aug 17,971.12 0.575489 -0.87852 0.771789
Sep 20,069.12 11.67429 10.22028 104.4542
Oct 20,032.34 -0.18327 -1.63727 2.680655
Nov 19,521.25 -2.55132 -4.00533 16.04266
Dec 20,509.09 5.060332 3.606328 13.0056
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Summation 17.44805 261.5151
Averagereturn
1.454004
2i = (x-x)2n
2i = 261.5151
12
2i =21.7929
Calculation ofRi, , ei2 , ofdifferent companies :-
NO.
COMPANY Ri ei2 1 CIPLA LTD 0.982 0.842 18.175 -
0.24367
2 J.B.CHEMICALS &PHARMACEUTICALS
LTD
7.85 0.602 105.21 6.974271
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3 SUNPHARMACEUTICALINDUSTRIES LTD
3.053 0.949 35.480 1.67276
4 TORRENTPHARMACEUTICAL
LTD
3.515 0.259 60.818 3.138294
5 JUPITERBIOSCIENCE LTD
-2.68 -0.266 111.75 -2.3019
56 GUJARAT
NARMADA VALLEYFERTILIZERS CO.
1.522 -0.034 39.777 1.571131
7 BHARATFERTILIZER
INDUSRIES LTD
9.023 0.833 299.72 7.812675
8 MANGLORECHEMICALS &FERTILIZERS LTD
6.255 -0.532 102.63 7.028432
9 TATA CHEMICALSLTD
2.04 0.962 52.611 0.64094
10 SPICE ISLANDSAPPARELS LTD
5.268 1.814 337.99 2.631536
11 ALFA LAVAL INDIA
LTD
0.323 0.472 30.402 -
0.3632512 GEI INDUSTRIES
SYSTEMS LTD8.736 1.564 180.93
16.4613
513 KULKARNI POWER
& TOOLS LTD1.142 -0.154 63.239 0.3666
6514 SARASWATI
INDUSTRIESSYNDICATE LTD
-0.19 0.484 56.43 -0.8978
915 YUKEN INDIA LTD 8.099 0.238 113.78 7.7523
8816 C & C
CONSTRUCTIONSLTD
-1.31 0.764 26.494 -2.4177
617 DLF LTD -1.29 1.746 32.835 -
3.82708
18 EXELONINFRASTRUCTURELTD
0.68 3.381 680.30 -4.2354
4
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19 CONSOLIDATEDCONSTRUCTIONCONSORTIUM
-1.72 0.48 32.071 -2.4178
720 PUNJ LLOYD LTD -4.01 2.358 57.190 -
7.4335
921 STATE BANK OF
INDIA2.095 1.006 39.069 0.6326
0422 FEDERAL BANK LTD 4.92 0.259 96.239 5.2959
323 CORPORATION
BANK3.817 0.776 58.426 2.6884
1724 ING VYSYA BANK
LTD2.255 1.172 69.643 0.5514
55
25 HDFC BANK LTD 2.965 1.166 21.369 3.055085
(A) Ranking the securities
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62
NO
COMPANY Ri
Ri/ Rank
1 CIPLA LTD 0.982 0.842 1.165 152 J.B.CHEMICALS
&PHARMACEUTICALS LTD
7.85 0.602 13.03 4
3 SUN
PHARMACEUTICAL INDUSTRIESLTD
3.053 0.949 3.215 9
4 TORRENTPHARMACEUTICAL LTD
3.515 0.259 13.55 3
5 JUPITERBIOSCIENCELTD
-2.689 -0.266 10.10 6
6 GUJARATNARMADAVALLEYFERTILIZERSCOMPANY
1.522 -0.034 -45.03 25
7 BHARATFERTILIZERINDUSRIES LTD
9.023 0.833 10.83 5
8 MANGLORE
CHEMICALS &FERTILIZERSLTD
6.255 -0.532 -11.7 24
9 TATACHEMICALS LTD
2.04 0.962 2.120 12
10 SPICE ISLANDSAPPARELS LTD
5.268 1.814 2.905 10
11 ALFA LAVALINDIA LTD
0.323 0.472 0.683 16
12 GEI INDUSTRIESSYSTEMS LTD
8.736 1.564 5.584 7
13 KULKARNIPOWER &
TOOLS LTD
1.142 -0.154 -7.432 23
14 SARASWATIINDUSTRIESSYNDICATE LTD
-0.194 0.484 -0.401 18
15 YUKEN INDIA
LTD
8.099 0.238 34.01 1
16 C & CCONSTRUCTIONS LTD
-1.307 0.764 -1.71 21
17 DLF LTD -1.289 1.746 -0.73 19
18 EXELON 0.68 3.381 0.201 17
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Where,
I * (Ri-Rf)*C = ei
1+ I i
ei
Ri Rf is selected.
Calculation of Cut off RateRank
Securities (Ri-Rf)
(Ri-Rf)*ei2
i2/ei2 Cumulative(a)
Cumulative(b)
c
1 YUKEN INDIA LTD 34.01637
0.016948
0.000498
0.016948 0.000498 0.36537
2 FEDERAL BANKLTD
19.02513
0.013219
0.00069
0.030168 0.013718 0.50613
3 TORRENTPHARMACEUTICAL LTD
13.55688
0.014987
0.001105
0.045155 0.028705 0.60536
4 J.B.CHEMICALS &PHARMACEUTICA
LS LTD
13.0370
0.04492 0.003445
0.090077 0.073627 0.75369
5 BHARATFERTILIZERINDUSRIES LTD
10.83619
0.025068
0.002313
0.115145 0.098696 0.79640
6 JUPITERBIOSCIENCE LTD
10.1063
0.006403
0.000633
0.12154 0.105099 0.80503
7 GEI INDUSTRIESSYSTEMS LTD
5.584313
0.075535
0.01352
0.197085 0.180635 0.87004
8 CORPORATIONBANK
4.91805
0.050701
0.010309
0.247786 0.231336 0.89381
9 SUNPHARMACEUTICAL INDUSTRIES
LTD
3.215925
0.081698
0.025404
0.3294 0.313035 0.91798
10 SPICE ISLANDS 2.9051 0.02826 0.0097 0.357752 0.3413026 0.92397
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APPARELS LTD 00 7 30
11 HDFC BANK LTD 2.543793
0.16175 0.063587
0.519506 0.503056 0.94637
12 TATA CHEMICALSLTD
2.120257
0.037303
0.017593
0.556810 0.540360 0.94978
13 STATE BANK OFINDIA
2.083142
0.05390 0.025877
0.610717 0.594267 0.95401
14 ING VYSYA BANKLTD
1.924639
0.037940
0.019712
0.64865 0.632207 0.95658
15 CIPLA LTD 1.165479
0.045505
0.039044
0.694162 0.677712 0.95931
16 ALFA LAVALINDIA LTD
0.683976
0.005007
0.007321
0.699170 0.682720 0.95959
17 EXELONINFRASTRUCTURE LTD
0.201094
0.003377
0.016797
0.702548 0.686098 0.95978
18 SARASWATIINDUSTRIESSYNDICATE LTD
-0.4009
5
-0.00166
5
0.004152
0.700883 0.684433 0.95969
19 DLF LTD -0.7384 -
0.068525
0.0927
98
0.632358 0.615908 0.95552
20 PUNJ LLOYD LTD -1.6986
3
-0.16513
0
0.097213
0.467227 0.450777 0.94073
21 C & CCONSTRUCTIONSLTD
-1.7102
4
-0.03768
7
0.022036
0.429540 0.413090 0.93586
22 CONSOLIDATEDCONSTRUCTIONCONSORTIUMLTD
-3.5823
7
-0.02574
6
0.007187
0.403793 0.387343 0.93205
23 KULKARNIPOWER & TOOLSLTD
-7.4329
4
-0.00277
3
0.000373
0.401020.384570 0.93161
24 MANGLORECHEMICALS &FERTILIZERS LTD
-11.759
7
-0.03241
5
0.002756
0.368604 0.352155 0.92604
25 GUJARATNARMADAVALLEYFERTILIZERSCOMPANY
-45.032
5
-0.00129
3
2.87207E
0.367311 0.350861 0.92580
(C)Arrival of Portfolio
Calculation ofZi
Rank
Securities ei Ri-Rf/
Zi
1 YUKEN INDIA LTD 0.2381 113.78
57
34.01637
97
0.069
2 FEDERAL BANK LTD 0.2586 96.239 19.02513 0.049
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5 53
3 TORRENTPHARMACEUTICAL LTD
0.2593 60.8184
13.5568839
0.054
4 J.B.CHEMICALS &PHARMACEUTICALSLTD
0.6021 105.2102
13.037037
0.069
5 BHARAT FERTILIZERINDUSRIES LTD
0.8327 299.7276
10.8361955
0.027
6 JUPITER BIOSCIENCELTD
-0.2661 111.7584
10.106351
0.022
7 GEI INDUSTRIESSYSTEMS LTD
1.5644 180.9305
5.58431347
0.04
8 CORPORATION BANK 0.7761 58.4261
4.9180518
0.053
9 SUNPHARMACEUTICAL
INDUSTRIES LTD
0.9494 35.4807
3.21592585
0.06
10 SPICE ISLANDSAPPARELS LTD
1.8135 337.9929
2.90510063
0.01
11 HDFC BANK LTD 1.1657 21.3698
2.54379343
0.086
12 TATA CHEMICALS LTD 0.9621 52.6113
2.12025777
0.021
13 STATE BANK OF INDIA 1.0055 39.0695
2.08314272
0.03
14 ING VYSYA BANK LTD 1.1717 69.6436
1.92463941
0.016
15 CIPLA LTD 0.8424 18.1752
1.16547958
0.01
Calculation of Zi YUKEN INDIA LTD
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i Ri Rf *i ei
Zi = 0.2381 34.01 0.9593
113.78
Zi =0.069172894
Calculation of Zi FEDERL BANK LTD
Zi = 0.2586 19.025-0.9593
96.23
Zi = 0.048543686
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Calculation ofXi
Rank Securities Zi Xi
1 YUKEN INDIA LTD 0.069 11.23
2 FEDERAL BANK LTD 0.049 7.89
3 TORRENT PHARMACEUTICAL LTD 0.054 8.73
4 J.B.CHEMICALS &PHARMACEUTICALS LTD
0.069 11.23
5 BHARAT FERTILIZER INDUSRIES LTD 0.027 4.46
6 JUPITER BIOSCIENCE LTD 0.022 3.81
7 GEI INDUSTRIES SYSTEMS LTD 0.04 6.5
8 CORPORATION BANK 0.053 8.54
9 SUN PHARMACEUTICAL INDUSTRIESLTD
0.06 9.81
10 SPICE ISLANDS APPARELS LTD 0.01 1.7
11 HDFC BANK LTD 0.086 14.04
12 TATA CHEMICALS LTD 0.021 3.45
13 STATE BANK OF INDIA 0.03 4.7
14 ING VYSYA BANK LTD 0.016 2.63
15 CIPLA LTD 0.01 1.55
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Calculation of xi YUKEN INDIA LTD
Zi
i Zi
xi = 0.069172894 0.615542859
Xi = 11.2377 %
Calculation of xi FEDERL BANK LTD
xi = 0.048543686 0.615542859
Xi = 7.8863 %
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Conclusion
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Has give negative return in Jan. and Feb., but they give
positive return in march. Some Companies give return not
according to market return.
And especially this project gives you detailed idea about the
Banking, Fertilizer and chemical, pharmaceutical sector so
those who want to invest their money into this sector for that
this is very helpful study.
Infrastructure sectors not given proper result in this year so
in future suggestion to not invest in Infrastructure sectors. It
sector has given negative return in this year. Sharp model
gives idea how to select securities for optimal portfolio. Here,
we construct & analyze Portfolio of five Sectors but thats not
enough, we have to also see the performance of selected
securities.
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Bibliography
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Bibliography
Magazine :
Capital Market
Web-sites :
www.bseindia.com
www.nseindia.com
www.moneycontrol.com
money.rediff.com
Books :Investment Management;
V.K.Bhadla;Gangadharn.
http://www.bseindia.com/http://www.nseindia.com/http://www.moneycontrol.com/http://www.bseindia.com/http://www.nseindia.com/http://www.moneycontrol.com/