Submission of

Project Proposal

Thematic equity research

At icici securities ltd

Complied by

Nikhil Shetty

May–2010

For

Mr. Debashish Gosh

SVKM’s NARSEE MONJEE INSTUTUTE OF MANAGEMENT

STUDIES

V. L. Mehta Road, Vile Parle (W) Mumbai – 400 056. India. Tel.: +91 – 22 – 2613 4577 /
2618 368

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Name of Student – Nikhil Shetty

Roll No. – 234

Programme – FT – MBA Core

Title of Project – Thematic Equity Research on the Indian

Rural Economy

Name of the Company Guide – Ms. Meenakshi Dawar

Name of the Faculty Guide – Mr. Debashish Gosh

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Introduction

ICICI Securities Ltd is the largest equity house in the country providing end-to-
end solutions through the largest non-banking distribution channel so as to fulfil
all the diverse needs of retail and corporate customers. ICICI Securities ( I-Sec )
provides a full service portfolio of Corporate Finance including Equity Capital
Markets Advisory Services, Institutional Equities, Retail and Financial Product
Distribution to its clients.

I-Sec has an in-house Equity Research team which covers all major sectors and
individual industries therein for understanding the value, risk and volatility of a
security and thus assists its retail and Institutional clients. However currently with
the number of listed companies in thousands, the current team captures only a
small fraction of the top companies in each sector. The other companies are
usually not covered by the current team and also by the other Financial
Institutions. Hence I-Sec is now looking to unlock the potential of the other
companies, not currently covered, for its clients.

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Literature Review

Thematic Equity research involves understanding trends and investment themes

in a particular sector with a view of investing in that sector. The underlying basis
being that the sector will outperform the market and will allow for better returns.
The Thematic approach seeks to identify the major secular, cyclical and structural
influences on the country’s economies and stock markets. The associated social,
economic and industry or demographical investment themes, represent
investment opportunities that determine the shape and strategic direction of the
portfolio. Thematic products can add value to the smart investor’s portfolio
provided he has a view on the underlying theme and also it allows him to
diversify his investments.

Investors and clients need not only Capital Preservation but also Capital
Appreciation of their investments. With the current volatility existing in the
markets and the world economy being just out of a recession, it is important to
look into new investment opportunities and avenues. Thematic products have
traditionally been riskier as compared to other diversified products due to its over
dependence on a single sector or theme, however the risks can been adequately
compensated by the high returns which the investor obtains. Hence it is
important to have a hands-on approach to mitigate the risk involved in the
product. This involves not only obtaining data which is publicly available but also
unearthing the data which is not readily available or has not been gathered. This
new information could eventually provide an edge and hence result in higher
returns or help reduce risk.

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Purpose and Objectives of the Study –

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