compounded annual growth rate (CAGR)

public sector undertaking (PSU) banks

Public Sector Banks (PSBs) are banks where a majority stake (i.e. more than 50%) is held by a
government. The shares of these banks are listed on stock exchanges. There are a total of 27 PSBs in
India

Why Companies Issue Bonds
When companies need to raise money, issuing bonds is one way to do it. A bond functions like a loan
between an investor and a corporation. The investor agrees to give the corporation a specific amount of
money for a specific period of time in exchange for periodic interest payments at designated intervals.
When the loan reaches its maturity date, the investors loan is repaid.
Bonds Versus Banks
The interest rate companies pay bond investors is often less than the interest rate they would be
required to pay to obtain a bank loan. Since the money paid out in interest detracts from corporate
profits, and companies are in business to generate profits, minimizing the interest amount that must be
paid to borrow money is an important consideration.
Issuing bonds also gives companies significantly greater freedom to operate as they see fit - free from
the restrictions that are often attached to bank loans.
Bonds Versus Stock
Issuing stock, which means granting proportional ownership in the firm to investors in exchange for
money, is a popular way for corporations to raise money. From a corporate perspective, perhaps the
most attractive feature of stock issuance is that the money generated from the sale of stock does not
need to be repaid. There are, however, downsides to stock issuance that may make bonds the more
attractive proposition
Stock issuance, on the other hand, puts additional stock shares in circulation, which means that future
earnings must be shared among a larger pool of investors. This can result in a decrease in earnings per
share (EPS), putting less money in owners' pockets.

However, when a company declares bankruptcy, stockholders are the first to bear losses. Creditors
(including bond-holders) are next.

The BSE Sensex currently consists of the following 30 major Indian companies as of 10 April
2014.
[4]

# Company Industry Scrip
1 Axis Bank Banking 532215
2 Cipla Pharmaceuticals 500087
3 Bharat Heavy Electricals Electrical equipment 500103
4 State Bank Of India Banking 500112
5 HDFC Bank Banking 500180
6 Hero Motocorp Automotive 500182
7 Infosys Information Technology 500209
8 Oil and Natural Gas Corporation Oil and gas 500312
9 Reliance Industries Oil and gas 500325
10 Tata Power Power 500400
11 Hindalco Industries Metals and Mining 500440
12 Tata Steel Steel 500470
13 Larsen & Toubro Conglomerate 500510
14 Mahindra & Mahindra Automotive 500520
15 Tata Motors Automotive 500570
16 Hindustan Unilever Consumer goods 500696
17 ITC Conglomerate 500875
18 Sesa Sterlite Ltd Iron and Steel 500295
19 Wipro Information Technology 507685
20 Sun Pharmaceutical Pharmaceuticals 524715
21 GAIL Oil and gas 532155
22 ICICI Bank Banking 532174
23 Housing Development Finance Corporation Housing Finance 500010
24 Bharti Airtel Telecommunication 532454
25 Maruti Suzuki Automotive 532500
26 Tata Consultancy Services Information Technology 532540
27 NTPC Power 532555
28 Dr. Reddy's Pharmaceuticals 500124
29 Bajaj Auto Automotive 532977
30 Coal India Metals and Mining 533278





The BSE has some reviews and modifies its composition to be sure it reflects current market conditions.
The index is calculated based on a free float capitalisation method, a variation of the market
capitalisation method. Instead of using a company's outstanding shares it uses its float, or shares that
are readily available for trading. As per free float capitalisation methodology, the level of index at any
point of time reflects the free float market value of 30 component stocks relative to a base period. The
market capitalisation of a company is determined by multiplying the price of its stock by the number of
shares issued by of corporate actions, replacement of scrips, etc

Here is the list of 50 companies that form part of CNX Nifty Index as on 3 March 2014:
S.No. Company Name
01 ACC Limited
02 Ambuja Cements Ltd.
03 Asian Paints Ltd.
04 Axis Bank Ltd.
05 Bajaj Auto Ltd.
06 Bank of Baroda
07 Bharat Heavy Electricals Limited
08 Bharat Petroleum Corporation
09 Bharti Airtel Ltd.
10 Cairn India Ltd.
11 Cipla Ltd.
12 Coal India Ltd.
13 DLF Limited
14 Dr. Reddy's Laboratories Ltd.
15 GAIL (India) Ltd.
16 Grasim Industries Ltd.
17 HCL Technologies Ltd.
18 HDFC Bank Ltd.
19 Hero MotoCorp Ltd.
20 Hindalco Industries Ltd.
21 Hindustan Unilever Ltd.
22 Housing Development Finance Corporation Ltd.
23 ITC Limited
24 ICICI Bank Ltd.
25 IDFC Ltd.
26 IndusInd Bank Ltd.
27 Infosys Ltd.
S.No. Company Name
28 Jaiprakash Associates Ltd.
29 Jindal Steel & Power Ltd.
30 Kotak Mahindra Bank Ltd.
31 Larsen & Toubro Ltd.
32 Lupin Limited
33 Mahindra & Mahindra Ltd.
34 Maruti Suzuki India Ltd.
35 NMDC Limited
36 NTPC Limited
37 Oil & Natural Gas Corporation Ltd.
38 PowerGrid Corporation of India Ltd.
39 Punjab National Bank
40 Ranbaxy Laboratories Ltd.
41 Reliance Industries Ltd.
42 Sesa Sterlite Limited
43 State Bank of India
44 Sun Pharmaceutical Industries Ltd.
45 Tata Consultancy Services Ltd.
46 Tata Motors Ltd.
47 Tata Power Co. Ltd.
48 Tata Steel Ltd.
49 UltraTech Cement Ltd.
50 Wipro

insurance
an arrangement by which a company or the state undertakes to provide a guarantee of compensation
for specified loss, damage, illness, or death in return for payment of a specified premium.
inflation
a general increase in prices and fall in the purchasing value of money




GDP
The gross domestic product (GDP) is one the primary indicators used to gauge the health of a country's
economy. It represents the total dollar value of all goods and services produced over a specific time
period - you can think of it as the size of the economy. Usually, GDP is expressed as a comparison to the
previous quarter or year. For example, if the year-to-year GDP is up 3%, this is thought to mean that the
economy has grown by 3% over the last year. Measuring GDP is complicated (which is why we leave it to
the economists), but at its most basic, the calculation can be done in one of two ways: either by adding
up what everyone earned in a year (income approach), or by adding up what everyone spent
(expenditure method). Logically, both measures should arrive at roughly the same total.
The income approach, which is sometimes referred to as GDP(I), is calculated by adding up total
compensation to employees, gross profits for incorporated and non incorporated firms, and taxes less
any subsidies. The expenditure method is the more common approach and is calculated by adding total
consumption, investment, government spending and net exports.

As one can imagine, economic production and growth, what GDP represents, has a large impact on
nearly everyone within that economy. For example, when the economy is healthy, you will typically see
low unemployment and wage increases as businesses demand labor to meet the growing economy. A
significant change in GDP, whether up or down, usually has a significant effect on the stock market. It's
not hard to understand why: a bad economy usually means lower profits for companies, which in turn
means lower stock prices. Investors really worry about negative GDP growth, which is one of the factors
economists use to determine whether an economy is in a recession.

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