ACKNOWLEDGEMENT
Sometimes words fall short to show gratitude, the same happened with me during this project. The immense help and support received from Reliance Money Limited overwhelmed me during the project. It is a great opportunity for me to work with Reliance money, pioneers in the field of stock trading, a part of Reliance Capital Ltd. I am extremely grateful to the entire team of Reliance Money at Dhanbad who have shared their expertise and knowledge with me and without whom the completion of this project would have been virtually impossible. My sincere gratitude to Mr. Chandan Kumar ( Head, Dhanbad) for providing me with an opportunity to work with Reliance Money Limited as a company project guide who has provided me with the necessary information and his valuable suggestion and comments on bringing out this report in the best possible way. I am highly indebted to Mr. Mithun Chakarborty and Narendra Nath Roy (Relationship Manager of Reliance Money) and company project guide Mr. Anirban Rakshit and Virti Jain, who has provided me the necessary information and his valuable suggestion and a good support in understanding the basics of the Reliance Money easily and share trading.
PREFACE
This project A REPORT ON DESCRIPTIVE STUDY OF STOCK MARKET AND STUDY OF INVESTORS PERCEPTION ABOUT INVESTMENT IN STOCK MARKET has been prepared to understand the requirement of the investors. The project introduces the demand of financial product of Reliance money ltd. This project comprises of various topic which are respected in very easy language which will help the user to understand the concepts easily. Every study is incomplete without having a well planned research methodology and concrete exposure to the student. This project provide us an in-depth study of how to financial product, advantages and disadvantages of financial product, various types and importance financial product .It tells us about the customer preferences towards various types of investment schemes with respect to stock market and other financial products. Opening of the mutual fund industry to the public sector banks and Insurance companies, led to the launching of more and more new schemes. The financial industry in India has grown fast in the recent period. The performance is encouraging especially because the emphasis in India has been on individual investors in contrast to advanced countries. In this project we study that financial product are managed by professionals, they are considered to have a better knowledge of market behaviors. Besides, they bring a certain competence to
their job. They also maximize gains by proper selection and timing of investment. Hence Reliance Money provides many financial products on the single window. Reliance money deals with the product and Investment options are available in... Derivatives Trading Special feature is available first time to track your positions online, in real time.
STUDENTS DECLARATION
I, Sintu Kumar Singh, student of M.B.A, hereby declare that
Descriptive Study of Stock market and Study of Investors Behavior of Investment submitted in the
Project entitled partial fulfillment of the degree for Master of Business Administration to DBS is of my own accurate work. I further declare that all the facts and figures furnished in this project report are the outcome of my own intensive research and findings. Submitted By Sintu Kumar Singh
TABLE OF CONTENT
1. Acknowledgment 2. Preface 3. Declaration 4. Certificate 5. Introduction 6. Reliance Money (A) VISION (B) MISSION (C) Product and Services 7. Reliance Group Structure 8. Working of Reliance Money 9. Competitors of Reliance Money 10. Stock Exchange and its role 11. Basic terms of share trading and Stock market 12. Online share trading process 13. Important INDICES of NSE
5
14. Constituent List of S&P CNX Industries Indices 15. List of Different Indian Industries With their symbols and ISIN Codes 16. Derivatives and its Detail study 17. World Indices and Their Details 18. Survey, feedback & data analysis Research Methodology Types Of Research Methods Of Data Collection Tools Of Analysis Research Design Questionnaire Observation Result Conclusion & Recommendation 19. Bibliography 20. Annexure
INTRODUCTION
Whether its retiring early, saving for childrens education, Paying off a loan or to live a secured and satisfied life everyone has dreams they can achieve by investing their savings. However, the question that arises is that, should one leave his money tucked away in the bank or plough it into the stock market where the potential for higher returns is greater but the chances of losing money is higher? Deciding where to invest depends on one`s attitude towards risk (one`s capacity to take risk and one`s tolerance towards risk) and the Investment horizon and non-availability of guaranteed-return Investment products. In such a scenario, investing in equity, which Offers returns that are higher than the inflation rate, help to build wealth and to improve the standard of living. India is a developing economy .its Prospering in all spheres. Share market is a compelling determinant of the Economy and the financial situation of a country. Ever since the liberalization, privatization and globalization, the foreign investment in our country is Booming. Share market is a clear indicator of the developing trend prevailing in Our country. Statistics reveal that the trade volume has been increasing Continuously, coupled with the ups and downs which is a nature of share Trading. We are living in an interlinked
world. With the growing volume of Trade, it has become a necessity that people are aware of the intricacies of the Web world.
SENSEX
the benchmark indicator of share trading has more than tripled ever since on line share trading commenced. It has become imperative to be a Participant of this mode of trading.Recently, the crisis in the financial market resulted in global inflation. The shareMarket was a clear indicator of the prevailing prices. Share trading is a way of faster earning and losing money. In the recent years, a volatile market could be witnessed. In the desire to earn money in a quick manner, more and more People have ventured out into share trading. Lack of awareness of many Investors have made them loose lakhs of money in the stock market. Wise plays By many others have made them earn in crores. Where the American NASDAQ in the commanding position, hongkong, Tokyo etc are some of the asian exchanges being quoted repeatedly when it comes to news about the share market. SENSEX is not far behind .Indian bourses are also often quoted. Electronic trading or online trading eliminates the need for physical tradingFloors. Brokers can trade from their offices ,using fully automated screen basedprocesses. Their workstations are connected to a stock
exchanges central Computer via satellite using Very Small Aperture Terminus (VSATs). The orders placed by brokers reach the exchanges central computer and are matched electronically.
The company which is today known as the largest financial service provider of India. Success sutras of Reliance Money: The success story of the company is driven by 9 success sutras adopted by it Namely Trust, Integrity, Dedication, Commitment, Enterprise, Hard work, Home work, Team work play, Learning and Innovation, Empathy and Humility and last but not the least its the Network . These are the values that bind success with Reliance Money. Vision of Reliance Money To achieve & sustain market leadership, Reliance Money shall aim for complete customer satisfaction, by combining its human and technological resources, to provide world class quality services. In the process Reliance Money shall strive to meet and exceed customer's satisfaction and set industry standards.
Mission statement: Our mission is to be a leading and preferred service provider to our customers, and we aim to achieve this leadership position by building an innovative, enterprising , and technology driven organization which will set the highest standards of service and business ethics.
10
Equity
Reliance Money offers its clients competitively priced Equity broking, PMS and Portfolio Advisory Services. Trading execution assistance provided to clients. In addition Reliance Money provides independent and unbiased view on markets along with trading strategies and entry / exit points for taking an informed decision.
Mutual Funds
A mutual fund is a professionally managed fund of collective investments that Collects money from many investors and puts it in stocks, bonds, short-term money market instruments, and/or other securities. Reliance Money offers dedicated research & expert advice on Mutual Funds. Mutual funds are considered to have low risk factors owing to diversification of assets into various sectors and Scripts or instruments within. A mutual fund is a common pool of money into which investors place their contributions that are to be invested in acoordance with a stated objective. Then the ownership of the fund is just joint and mutual; the fund belongs to all investors.
11
Life-Insurance
Reliance Money assists its clients in choosing a customized plan which will secure the familys future and their expenses post-retirement. Clients can choose from different plans of almost all Insurance Companies where they can invest their money. Clients can choose from products and services that channelise their savings and protect their needs while guaranteeing security and returns for life. A team of experts will suggest the best Insurance scheme which suits the clients requirement.
General Insurance
12
General Insurance is all about protecting against all kind of insurable risks. Reliance Money assists you in areas of Health insurance, Travel insurance, Home insurance and Motor insurance.
Commodities
A single platform to trade on both the major commodity exchanges i.e. NCDEX and MCX. In addition In-house research desk shall provide research reports on all major commodities which shall enable in getting views for trading and diversify clients holdings. Trade Execution assistance is also provided to clients.
Tax Planning
With a view to provide complete wealth management solutions, Reliance Moneys Wealth management offerings include tax related services like: Tax Planning & advisory Filing Tax returns for individuals
13
Property Valuation Real-estate Consulting Corporate earnings model, Lease rentals, etc.
Offshore Investments
Reliance Money provides a unique opportunity to invest in international financial Markets through the online platform which includes different product ranges.
14
15
ICICI Securities. Sharekhan Kotak Securities India Infoline India Infoline Ltd India Infoline Ltd is listed on both the leading stock exchanges in India, viz. the Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE). The India Infoline group, comprising the holding company, India Infoline Ltd and its subsidiaries, straddles the entire financial services space with offerings ranging from Equity research, Equities and derivatives trading, Commodities trading, Portfolio Management Services, Mutual Funds, Life Insurance, Fixed deposits and other small savings instruments to loan products and Investment banking. India Infoline also owns and manages the websites. India Infoline Limited is listed on both the leading stock exchanges in India, viz. the Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE) and is also a member of both the exchanges. It is engaged in the businesses of Equities broking, Wealth Advisory Services and Portfolio Management Services. It offers broking services in the Cash and Derivatives segments of the NSE as well as the Cash segment of the BSE. It is registered with NSDL as well as CDSL as a depository participant, providing a one-stop solution for clients trading in the equities market. It has recently launched its Investment banking and Institutional Broking business. India Infoline Securities Pvt Ltd India Infoline Securities Pvt Ltd is a 100% subsidiary of India InfolineLtd, which is engaged in the businesses of Equities broking and Portfolio Management Services. It offers broking services in the Cash and Derivatives segments of the NSE as well as the Cash segment of the BSE. Sharekhan Securities Sharekhan was created when SSKI Investor Services Pvt. Ltd., a company in the
16
securities and equities segment decided to harness the power of the Internet and offer services to its customers through an online stock trading portal. Sharekhan brings and provides a userfriendly online trading facility. They also have an extensive all-India ground network of franchisees across the country. The company offers its services through a combination of online and offline channels. The online model comprises a portal, chat facilities, and 'speed trade' terminals. And the offline model uses a combination of an IVR infrastructure and a team of customer agents to receive orders over the telephone. ICICI Securities ICICI Securities, A subsidiary of ICICI Bank, was set up in February 1993 to provide investment-banking services to investors in India. As on date ICICI Bank holds 99.9% of the share capital of ICICI Securities. ICICI Securities Limited is Indias leading full service investment bank with a dominant position in all segments of its operations Corporate Finance Fixed Income and Equities. Kotak Securities: Kotak Securities Limited, a 100% subsidiary of Kotak Mahindra Bank, is the stock broking and distribution arm of the Kotak Mahindra Group. Kotak Mahindra is one of India's leading financial institutions, offering complete financial solutions that encompass every sphere of life. From commercial banking, to stock broking, to mutual funds, to life insurance, to investment banking, the group caters to the financial needs of individuals and corporate. Kotak also offers stock broking through the branch and Internet, Investments in IPO, Mutual funds and Portfolio management service. The Kotak Mahindra Group
17
Kotak Mahindra is one of India's leading financial conglomerates, offering complete financial solutions that encompass every sphere of life. From commercial banking, to stock broking, to mutual funds, to life insurance, to investment banking, the group caters to the financial needs of individuals and corporates. The group has a net worth of over Rs. 5,609 crore, employs around 17,100 people in its various businesses and has a distribution network of branches, franchisees, representative offices and satellite offices across 344 cities and towns in India and offices in New York, London, Dubai, Mauritius and Singapore. The Group services around 3.6 million customer accounts. Kotak Securities has 195 branches servicing more than 2, 20,000 customers and coverage of 231 Cities. Kotaksecurities.com, the online division of Kotak Securities Limited offers Internet Broking services and also online IPO and Mutual Fund Investments. Indiabulls: Indiabulls is Indias leading Financial Services and Real Estate Company having over 640 branches all over India. Indiabulls serves the financial needs of more than 4,50,000 customers with its wide range of financial services and products from securities, derivatives trading, depositary services, research & advisory services, consumer secured & unsecured credit, loan against shares and mortgage & housing finance. Indiabulls Financial Services Ltd is listed on the National Stock Exchange, Bombay Stock Exchange.
Stock exchange
A stock exchange , share market or bourse is a corporation or mutual organization which provides facilities for stock brokers and trader , to trade company stocks and other securities .Stock exchanges also provide facilities for the issue redemption, as well as, other financial instruments and capital events including the payment of income and dividends . The securities traded on
18
a stock exchange include: shares issued by companies ,unit trusts and other pooled investment products and bonds .To be able to trade a security on a certain stock exchange, it has to be listed . Usually there is a central Location at least for Recordkeeping, but trade is less and less linked to such a physical place, as Modern markets are electronic networks, which gives them advantages of speed And cost of transactions. Trade on an exchange is by definition done in the Primary market and subsequent trading is done in the secondary market. Supply And demand in stock markets is driven by various factors which, as in free markets, Affect the price of stocks (see stock valuation).There is usually no compulsion to Issue stock via the stock exchange itself, nor must stock be subsequently traded On the exchange. Such trading is said to be off exchange or over-theCounter. This is the usually way that bonds are traded. Increasingly more and More stock exchanges are part of a global market for securities.
19
consumed, or kept in idle deposits with banks are mobilized and redirected to promote business activity with benefits for several economic growth and higher productivity levels.
[D]. Corporate governanceBy having a wide and varied scope of owners, companies generally tend to improve on their management standards and efficiency in order to satisfy the demands of these shareholders and the more stringent rules for public corporations by public stock exchange and the government. Consequently, it is alleged that public companies (companies that are
20
owned by shareholders who are members of the general public and trade shares on public exchange) tend to have better management records than privately-held companies (those companies where shares are not publicly traded, often owned by the company founders and / or their families and heirs , or otherwise by a small group of investors) . However, some well-documented cases are known where it is alleged that their has been considerable slippage in corporate governance on the part of some public companies.
21
government must tax the citizens or otherwise raise additional funds to make any regular coupon payments and refund the principal when the bonds mature.
22
[1]Sensex
It is an index that represents the direction of the companies that are traded on the Bombay Stock Exchange, BSE. The word Sensex comes from sensitive index. The Sensex captures the increase or decrease in prices of stocks of companies that it comprises. A number represents this movement. Currently, all the 30 stocks that make up the Sensex have reached a value of 14,355 points. .
[2] Nifty
It is the Sensex's counterpart on the National Stock Exchnage, NSE. The only difference between the two indices (the Sensex and Nifty) is that the Nifty comprises of 50 companies and hence is more broad-based than the Sensex. Having said that one must remember that the Sensex is the benchmark that represents Indian equity markets globally. The Nifty 50 or the S&P CNX Nifty as the index is officially called has all the 30 Sensex stocks.The NSE Nifty functions exactly like (explained above) the BSE Sensex.
[3] Bull
A particular kind of investor who purchases shares in the expectation that the market price of that company's share will increase. S/he sells her/his stock at a higher price and pockets the profit. Simply put, the bulls buy at a lower price and sell at a higher price.
23
For instance, if a bull buys a company's share at Rs 100, s/he would prefer selling the same stock at Rs 120 or any price higher than Rs 100 to make a profit. Usually, a bull buys first at a lower price and sells later at a price higher than her/his cost of purchase. Bulls are happy when the markets (the Sensex and Nifty) move upwards. A falling market takes bulls into hibernation.
[4] Bear
Bull's counterpart is the bear. A bear sells stocks first that s/he owns or borrows from, say a friend, and then purchases the same quantity of shares at a lower price. The best way to invest in the stock market If a bear sells first, say 100 shares of Ranbaxy at Rs 400, and later purchases the same number of shares at Rs 375, then her/his profit is Rs 25 (400-375) per share. This way s/he has got back the 100 shares of Ranbaxy and simultaneously made a profit of Rs 2500. The shares can later be returned to the bear's friend if s/he had borrowed the same from a friend.
There are bears in the market that sell shares first without actually owning them unlike in the above example. Such selling is called naked short selling or going short on a stock. Bears are happy in a falling market. While individual investors can engage in selling first and buying later (also referred to as short selling), mutual funds and foreign institutional investors are not allowed this luxury in India yet.
24
25
[6] Rally
The word suggests the gain made by the Sensex or Nifty during the course of the day. If such gains are made on a regular basis then market participants like investors, brokers etc call it as a market rally. If the Sensex moves from 14,000 points to 15,000 points in a span of say 14 or for that matter 20 trading sessions (the stock markets remain closed on Saturdays, Sundays and other bank holidays) then the phenomenon is referred to as a rally. Bulls are always said to be active during a market rally.
[7] Crash
As the word suggests, crash refers to a fall in the value of Sensex and Nifty. In the first three trading days of this week(February 12-14) alone the Sensex had crashed by more than 700 points. The Sensex then had plummeted from around 14,700 levels to around 14,000 points. This sudden and violent 700-point fall is referred to as the crash or market crash.
26
[8] Correction
A correction (or a measured fall) in the Sensex and Nifty takes place when these indices rise for a few days and then retrace or shave off some of these gains. Say if the markets rally from 13,000 to 14,000 points in 10 days and the again fall to 13,700 points in the next five-six days then this action is termed as a market correction. It is like a woman/man resting for some time after running a long distance race. Like human beings the market too needs to take rest after a smart rally. Market experts consider such corrections healthy because during this period the ownership of shares moves from weak hands (shortterm investors) to strong hands (long-term investors). Corrections are generally considered as signs of strength after which the markets (the Sensex and Nifty) gets once again poised for a further rally.
When a company declares a bonus issue it converts this idle cash into shares that are then distributed amongst its shareholders. This process is called capitalising of reserves. A bonus is usually declared as a ratio. A bonus issue in the ratio of 1:1 means you will get one free share for every one share of the company you own. A 2:1 bonus issue (or two for every one held) means you will get two free shares of a company for every one that you own. Similarly, a 5:1 bonus issue will give you five free shares for every one share that you own.
[10] Dividend
It is again a way of rewarding a company's shareholders. A dividend is generally issued as a percentage of the face value of a share. Face value is the nominal price of a company's share. A share can have different face values like Re 1, Rs 2, Rs 5, Rs 10 or Rs 100. An 80% dividend on a share of face value Rs 2 (Rs 1.6) will always be less than a dividend of 20% declared on share of face value Rs 10 (Rs 4). Like bonus shares, dividend amount also comes from a company's free cash reserves.
28
Say a company A announces a 1:1 bonus issue and the book closure date is February 28, 2007. If you don't own this company's share and want to avail of the bonus offer then you must not only buy this share before February 28 but also make sure that the number of shares purchased by you are transferred to your account from the seller before this date. If the ownership of shares is reflected in your account after February 28 then you will not get any bonus shares. The same is also true for dividend announcements. This just sums up a few terms used by stock market participants. We shall see some more next week.
29
{B}. A widely used form of employee incentive and compensation.In some Companies, Stock options constitute part of remuneration. Employee stock options are stock options for the company's own stock that are often offered to upper-level employees as part of the executive compensation package. An employee stock option is identical to a call option on the company's stock, with some extra restrictions.
learning about the stock market and choose the stocks you want to invest in. One say's "I bought "XYZ Company" at Rs.2200 and immediately after I bought the stock price dropped to Rs.2000." I feel sad. Another comes with a different version "I sold "XYZ Company" at Rs.2000 and it went up to Rs.2400 same evening" I made an imaginary loss of Rs.400 per share. Solution: You can buy more shares @ Rs.2000 and reduce your overall buying cost. This has to be done only if believe in the fundamentals, management and the future prospects of the company. To do this you need to keep money ready.whatever money you have and want to invest, split it into two parts. Then keep 50% cash aside, only invest with other 50%.So if need to buy more of any stock when the price falls you have ready cash. Also now if you have 200 shares of XYZ Company 100 @ Rs.2200 and 100 @ Rs.2000.Then the price goes up to Rs.2400. Sell only 100 of the shares.Then if the price further shot up, you have some shares to sell And participate in the rally to make money. Next, You sold the share and the price went up. The solution to this is never sell all the shares at one time. Sell only 50% of your shares. So if he price goes up later you still have the other 50% to sell and make profit. The golden Rule is to first do your own analysis of the stock before investing and buy on tips. Also invest only in companies which declare dividends every year. To be sure that you are not investing in loss making companies. Every Market expert advise to do your stock analysis before investing in the stock market. But nobody tells you how.
31
Well in my next article I will write about how to do stock analysis using various tools such as financial ratios and by checking the track records of the companies you plan to invest in. P.S: If you are not Indian then replace the Rs. into your own local currency to understand the article
Salient Features
Performance indicator to foreign institutional investors, off-shore funds, etc. Provides an effective tool for hedging Indian equity exposure. Impact cost of the S&P CNX Nifty for a portfolio size of Rs.2 crore is 0.16% Provides fund managers an instrument for measuring
32
Base date: 03 November 1995 Base S&P CNX Defty Index Value: 1000 S&P CNX Nifty Value as on Base date: 1000 Exchange rate as on base date: 34.65
33
34
The total traded value for the last six months of all Nifty stocks is approximately 52% of the traded value of all stocks on the NSE Nifty stocks represent about 63% of the Free Float Market Capitalization as on Dec 31, 2009. Impact cost of the S&P CNX Nifty for a portfolio size of Rs.2 crore is 0.10% S&P CNX Nifty is professionally maintained and is ideal for derivatives trading
From June 26, 2009, S&P CNX Nifty is computed based on free float methodology.
CNX Nifty Junior represents about 12 % of the Free Float Market Capitalization as on Dec 31, 2009.
35
The traded value for the last six months of all Junior Nifty stocks is approximately 15% of the traded value of all stocks on the NSE Impact cost for CNX Nifty Junior for a portfolio size of Rs.50 lakhs is 0.13%
From May 04, 2009, CNX Nifty Junior is computed based on free float methodology.
E.CNX100
CNX 100 is a diversified 100 stock index accounting for 35 sector of the economy. CNX 100 is owned and managed by India Index Services & Products Ltd. (IISL). Which is a joint venture between CRISIL & NSE. IISL is Indias first specialized company focused upon the index as a core products. IISL has a licensing & marketing agreement with Standard & Poors (S&P), who are leaders in index services.
CNX 100 represents about 73.3% of the Free Float market capitalization as on Sept 30, 2009. The average traded value for the last six months of all CNX100 stocks is approximately 70.1 % of the traded value of all stocks on the NSE. Impact cost for CNX 100 for a portfolio size of Rs. 3 crore is 0.18%.
From June 26, 2009, CNX 100 is computed based on free float methodology.
The S&P CNX 500 is Indias first broadbased benchmark of the Indian capital market. The S&P CNX 500 represents about 92.57% of total market capitalisation and about 91.17% of the total turnover on the NSE as on Sept 30, 2009. The S&P CNX 500 companies are disaggregated into 72 industry indices viz. S&P CNX Industry Indices. Industry weightages in the index reflect the industry weightages in the market. For e.g. if the banking sector has a 5% weightage in the universe of stocks traded on NSE, banking stocks in the index would also have an approx. representation of 5% in the index.
G. CNX Midcap
The medium capitalised segment of the stock market is being increasingly perceived as an attractive investment segment with high growth potential. The primary objective of the CNX Midcap Index is to capture the movement and be a benchmark of the midcap segment of the market. Method of Computation CNX Midcap is computed using free float market capitalization weighted method w.e.f. February 26, 2010, wherein the level of the index reflects the free float market value of all the stocks in the index relative to a particular base period. The method also takes into account constituent changes in the index and importantly corporate actions such as stock splits, rights, etc without affecting the index value. Base Date and Value The CNX Midcap Index has a base date of Jan 1, 2003 and a base value
37
of 1000 Criteria for Selection of Constituent Stocks The constituents and the criteria for the selection judge the effectiveness of the index. Selection of the index set is based on the following criteria :
All the stocks, which constitute more than 5% market capitalization of the universe (after sorting the securities in descending order of market capitalization), shall be excluded in order to reduce the skewness in the weightages of the stocks in the universe. After step (a), the weightages of the remaining stocks in the universe is determined again. After step (b), the cumulative weightage is calculated.After step (c) companies which form part of the cumulative percentage in ascending order unto first 75 percent (i.e. upto to 74.99 percent) of the revised universe shall be ignored. After, step (d), all the constituents of S&P CNX Nifty shall be ignored. From the universe of companies remaining after step (e) i.e. 75th percent and above, first 100 companies in terms of highest market capitalization, shall constitute the CNX Midcap Index subject to fulfillment of the criteria mentioned below.
Trading Interest All constituents of the CNX Midcap Index must have a minimum listing record of 6 months. In addition, all candidates for the Index are also evaluated for trading interest, in terms of volumes and trading frequency.
38
Financial Performance All companies in the CNX Midcap Index have a minimum track record of three years of operations with a positive net worth. Others A company which comes out with a IPO will be eligible for inclusion in the index, if it fulfills the normal eligibility criteria for the index for a 3 month period instead of a 6 month period.
* CNX Midcap Index was computed using market capitalization weighted method from the launch date till February 25, 2010.
H. Nifty Midcap 50
The medium capitalized segment of the stock market is being increasingly perceived as an attractive investment segment with high growth potential. The primary objective of the Nifty Midcap 50 Index is to capture the movement of the midcap segment of the market. It can also be used for index-based derivatives trading.
Method of computation
Nifty Midcap 50 is computed using free float market capitalisation weighted method, wherein the level of the index reflects the total market value of all the stocks in the index relative to a particular base period. The method also takes into account constituent changes in the index and importantly corporate actions such as stock splits, rights, etc without affecting the index value. Base Date and Value The Nifty Midcap 50 Index has a base date of Jan 1, 2004 and a base value of 1000.
39
Criteria for Selection of Constituent Stocks The constituents and the criteria for the selection judge the effectiveness of the index. Selection of the index set is, inter alia, based on the following criteria:
Stocks with average market capitalization ranging from Rs.1000 Crore to Rs.5000 Crore at the time of selection. Stocks which are not part of the derivatives segment are excluded. Stocks which are forming part of the S&P CNX NIFTY index are excluded. Other statistics: Nifty Midcap 50 stocks represent about 6.50 % of the total market capitalization as on March 31, 2010. The traded volume for the last six months of all Nifty Midcap 50 stocks is approximately 10% of the traded volume of all stocks on the NSE.
* Nifty Midcap 50 Index was computed using market capitalization weighted method from the launch date till February 25, 2010
I. CNX IT Index
Information Technology (IT) industry has played a major role in the Indian economy during the last few years. A number of large, profitable Indian companies today belong to the IT sector and a great deal of investment interest is now focused on the IT sector. In order to have a good benchmark of the Indian IT sector, IISL has developed the CNX IT sector index. CNX IT provides investors and market intermediaries with an appropriate benchmark that captures the
40
performance of the IT segment of the market. Companies in this index are those that have more than 50% of their turnover from IT related activities like IT Infrastructure , IT Education and Software Training , Telecommunication Services and Networking Infrastructure, Software Development, Hardware Manufacturers, Vending, Support and Maintenance. The total traded value for the last six months of CNX IT Index stocks is approximately 83.39% of the traded value of the IT sector. CNX IT Index stocks represent about 80.33% of the total market capitalization of the IT sector as on March 31, 2009. The total traded value for the last six months of all CNX IT Index constituents is approximately 8.59% of the traded value of all stocks on the NSE. CNX IT Index constituents represent about 6.97% of the total market capitalization as on March 31, 2009. Methodology The index is a market capitalisation weighted index with its base period being December 1995 and the base date and base value being January 1, 1996 and 1,000 respectively. The Base Value of the index is being revised from 1000 to 100 w.e.f. 28 May 2004. Selection Criteria Selection of the index set is based on the following criteria : Company's market capitalisation rank in the universe should be less than 500. Company's trading frequency should be at least 90% in the last six months.
41
Company should have a positive networth. A company which comes out with a IPO will be eligible for inclusion in the index, if it fulfills the normal eligibility criteria for the index for a 3 month period instead of a 6 month period.
2 3
AIRCONDITIONERS ALUMINIUM
42
4 5 6 7 8
S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX
BREW/DISTILLERIES CABLES - TELECOM CASTINGS/FORGINGS CEMENT AND CEMENT PRODUCTS CHEMICALS - INORGANIC CHEMICALS - ORGANIC CHEMICALS - SPECIALITY CIGARETTES COMPRESSORS / PUMPS COMPUTERS - HARDWARE COMPUTERS - SOFTWARE CONSTRUCTION CONSUMER DURABLES CYCLES DETERGENTS DIESEL ENGINES DIVERSIFIED DYES AND PIGMENTS
43
27 28 29 30 31 32 33 34 35 36 37
S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX
ELECTRICAL EQUIPMENT ELECTRODES ELECTRONICS - INDUSTRIAL ENGINEERING FASTNERS FERTILISERS FINANCE FINANCE - HOUSING CNX FINANCIAL INSTITUTION CNX FOOD AND FOOD PROCESSING GEMS, JEWELLERY AND WATCHES"
38 39
HOTELS GAS
40 41 42 43 44 45 46 47 48 49
S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX
LEATHER AND LEATHER PRODUCTS MEDIA & ENTERTAINMENT METALS MINING MISCELLANEOUS OIL EXPLORATION/PRODUCTION PACKAGING PAINTS PAPER AND PAPER PRODUCTS PERSONAL CARE
44
50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72
S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX
PESTICIDES AND AGROCHEMICALS PETROCHEMICALS PHARMACEUTICALS PLASTIC AND PLASTIC PRODUCTS POWER PRINTING AND PUBLISHING REFINERIES REFRACTORIES SHIPPING SOLVENT EXTRACTION STEEL AND STEEL PRODUCTS SUGAR TEA AND COFFEE TELECOMMUNICATION - EQUIPMENT TELECOMMUNICATION - SERVICES TEXTILE MACHINERY TEXTILE PRODUCTS TEXTILES - COTTON TEXTILES - SYNTHETIC TRADING TRANSMISSION TOWERS TRAVEL AND TRANSPORT TYRES
45
Customised Indices
IISL undertakes development & maintenance of customised indices for clients as well as offers consultancy services for developing indices. Customised indices can be used for tracking the performance of the clients portfolio of stocks vis--vis objectively defined benchmarks, or for benchmarking NAV performance to customised indices. The customised indices can be sub-sets of existing indices or a completely new index. Some of the indices that can be constructed include: Sector Indices Individual Business Group Indices Portfolios Industry Indices
Methodology
Customised indices will be computed as per the methodology specified by the client, if it is not a market capitalisation weighted index.
Maintenance
IISL will maintain the index for an annual fee. A review will be carried out by IISL in consultation with the client to review the specified criteria, number of constituent companies in the Index, and their performance on the selection criteria periodic intervals.
Services to Clients
46
1. CMC Ltd.,COMPUTERS
HARDWARE
CMC
EQ
INE314A01017
SOFTWARE
COREPROTE C
EQ
INE247G01024
SOFTWARE
EDUCOMP
EQ
INE216H01027
SOFTWARE
FINANTECH
EQ
INE111B01023
SOFTWARE
FSL
EQ
INE684F01012
47
7. HCL
Infosystems HARDWARE
HCL-INSYS
EQ
INE236A01020
Ltd. COMPUTERS
SOFTWARE
HCLTECH
EQ
INE860A01027
9. Infosys
Technologies
SOFTWARE
INFOSYSTC H
EQ
INE009A01021
Ltd.,COMPUTERS
SOFTWARE
MINDTREE
EQ
INE018I01017
11. Moser
Baer
India HARDWARE
MOSERBAE R
EQ
INE739A01015
Ltd.,COMPUTERS
SOFTWARE
MPHASIS
EQ
INE356A01018
Financial Software
SOFTWARE
OFSS
EQ
INE881D01027
Ltd.,COMPUTERS
48
Computer
SOFTWARE
PATNI
EQ
INE660F01012
India
SOFTWARE
ROLTA
EQ
INE293A01013
Consultancy
SOFTWARE
TCS
EQ
INE467B01029
Ltd.,COMPUTERS
18. Tech
Mahindra
SOFTWARE
TECHM
EQ
INE669C01028
Ltd.,TELECOMMUNICA
SOFTWARE
WIPRO
EQ
INE075A01022
CNXIT Futures
49
A futures contract is a forward contract, which is traded on an Exchange. CNX IT Futures Contract would be based on the index CNX IT index.
Contract Specifications Security descriptor
The security descriptor for the CNX IT futures contracts is: Market type : N Instrument Type : FUTIDX Underlying : CNXIT Expiry date : Date of contract expiry Instrument type represents the instrument i.e. Futures on Index. Underlying symbol denotes the underlying index which is CNXIT Expiry date identifies the date of expiry of the contract
Underlying Instrument
CNX IT futures contracts have a maximum of 3-month trading cycle the near month (one), the next month (two) and the far month (three). A new contract is introduced on the trading day following the expiry of the near month contract. The new contract will be introduced for a three month duration. This way, at any point in time, there will be 3 contracts available for trading in the market i.e., one near month, one mid month and one far month duration respectively.
Expiry day
50
CNX IT futures contracts expire on the last Thursday of the expiry month. If the last Thursday is a trading holiday, the contracts expire on the previous trading day.
Trading Parameters Contract size
The value of the futures contracts on CNXIT may not be less than Rs. 2 lakhs at the time of introduction. The permitted lot size for futures contracts & options contracts shall be the same for a given underlying or such lot size as may be stipulated by the Exchange from time to time.
Price steps
Base price of CNX IT futures Contracts on the first day of trading would be theoretical futures price.. The base price of the contracts on subsequent trading days would be the daily settlement price of the futures contracts.
Price bands
There are no day minimum/maximum price ranges applicable for CNX IT futures contracts. However, in order to prevent erroneous order entry by trading members, operating ranges are kept at +/- 10 %. In respect of orders which have come under price freeze, members would be required to confirm to the Exchange that there is no inadvertent error in the order entry and that the order is genuine. On such confirmation the Exchange may approve such order.
51
Quantity freeze
Orders which may come to the exchange as quantity freeze shall be such that have a quantity of more than 15000. In respect of orders which have come under quantity freeze, members would be required to confirm to the Exchange that there is no inadvertent error in the order entry and that the order is genuine. On such confirmation, the Exchange may approve such order. However, in exceptional cases, the Exchange may, at its discretion, not allow the orders that have come under quantity freeze for execution for any reason whatsoever including non-availability of turnover / exposure limit. In all other cases, quantity freeze orders shall be cancelled by the Exchange.
CNXIT Options
An option gives a person the right but not the obligation to buy or sell something. An option is a contract between two parties wherein the buyer receives a privilege for which he pays a fee (premium) and the seller accepts an obligation for which he receives a fee. The premium is the price negotiated and set when the option is bought or sold. A person who buys an option is said to be long in the option. A person who sells (or writes) an option is said to be short in the option. The options contracts are European style and cash settled and are based on the CNX ITindex.
Contract Specifications Security descriptor
The security descriptor for the CNX IT options contracts is: Market type : N Instrument Type : OPTIDX
52
Underlying : CNXIT Expiry date : Date of contract expiry Option Type : CE/ PE Strike Price: Strike price for the contract Instrument type represents the instrument i.e. Options on Index. Underlying symbol denotes the underlying index, which is CNXIT Expiry date identifies the date of expiry of the contract Option type identifies whether it is a call or a put option., CE - Call European, PE - Put European.
Underlying Instrument
CNX IT options contracts have a maximum of 3-month trading cycle the near month (one), the next month (two) and the far month (three). On expiry of the near month contract, new contracts are introduced at new strike prices for both call and put options, on the trading day following the expiry of the near month contract. The new contracts are introduced for three month duration.
Expiry day
CNX IT options contracts expire on the last Thursday of the expiry month. If the last Thursday is a trading holiday, the contracts expire on the previous trading day.
Strike Price Intervals
The number of contracts provided in options on index is based on the range in previous days closing value of the underlying index and applicable as per the following table: Index Level Strike Scheme of
53
Interval upto 2000 >2001 upto 4000 >4001 upto 6000 >6000 50 100 100 100
The above strike parameters scheme shall be applicable for all Long terms contracts also.
Trading Parameters Contract size
The value of the option contracts on Nifty may not be less than Rs. 2 lakhs at the time of introduction. The permitted lot size for futures contracts & options contracts shall be the same for a given underlying or such lot size as may be stipulated by the Exchange from time to time.
Price steps
Quantity freeze
Orders which may come to the exchange as quantity freeze shall be such that have a quantity of more than 15000. In respect of orders which have come under quantity freeze, members would be required to confirm to the Exchange that there is no inadvertent error in the order entry and that the order is genuine. On such confirmation, the Exchange may approve such order. However, in exceptional cases, the Exchange may, at its discretion, not allow the orders that have come under quantity freeze for execution for any reason whatsoever including non-availability of turnover / exposure limit. In all other
54
Regular lot order Stop loss order Immediate or cancel Spread order
J.CNX Bank Index
The Indian banking Industry has been undergoing major changes, reflecting a number of underlying developments. Advancement in communication and information technology has facilitated growth in internet-banking, ATM Network, Electronic transfer of funds and quick dissemination of information. Structural reforms in the banking sector have improved the health of the banking sector. The reforms recently introduced include the enactment of the Securitization Act to step up loan recoveries, establishment of asset reconstruction companies, initiatives on improving recoveries from Non-performing Assets (NPAs) and change in the basis of income recognition has raised transparency and efficiency in the banking system. Spurt in treasury income and improvement in loan recoveries has helped Indian Banks to record better profitability. In order to have a good benchmark of the Indian banking sector, India Index Service and Product Limited (IISL) has developed the CNX Bank Index. CNX Bank Index is an index comprised of the most liquid and large capitalised Indian Banking stocks. It provides investors and market intermediaries with a benchmark that captures the capital market
55
performance of Indian Banks.The index will have 12 stocks from the banking sector which trade on the National Stock Exchange. The total traded value for the last six months of CNX Bank Index stocks is approximately 96.46% of the traded value of the banking sector. CNX Bank Index stocks represent about 87.24% of the total market capitalization of the banking sector as on March 31, 2009. The total traded value for the last six months of all the CNX Bank Index constituents is approximately 15.26% of the traded value of all stocks on the NSE. CNX Bank Index constituents represent about 7.74% of the total market capitalization as on March 31, 2009.
Methodology
The index is a market capitalization weighted index with base date of January 01, 2000, indexed to a base value of 1000.
Selection Criteria
Selection of the index set is based on the following criteria: 1. Company's market capitalisation rank in the universe should be less than 500 2. Company's turnover rank in the universe should be less than 500 3. Company's trading frequency should be at least 90% in the last six months. 4. Company should have a positive networth. 5. A company which comes out with a IPO will be eligible for inclusion in the index, if it fulfills the normal eligiblity criteria for the index for a 3 month period instead of a 6 month period.
56
Axis bank ltd. Bank of Baroda Bank of India Canara Bank HDFC Bank Ltd. ICICI Bank Ltd IDBI Bank Ltd Kotak Mahindra Bank Ltd. Oriental Bank of Commerce
BANKS
AXISBANK
EQ
INE238A01026
BANKS
BANKBARODA
EQ
INE028A01013
EQ EQ EQ
BANKS
ICICIBANK
EQ
INE090A01013
BANKS
IDBI
EQ
INE008A01015
BANKS
KOTAKBANK
EQ
INE237A01010
BANKS
ORIENTBANK
EQ
INE141A01014
57
BANKS
PNB
EQ
INE160A01014
BANKS
SBIN
EQ
INE062A01012
BANKS
UNIONBANK
EQ
INE692A01016
The CNX FMCG Index is calculated using the market capitalisation weighted aggregate method. The base period is the month of December 1995, index to a value 1000.
Selection Criteria
Selection of the index set is based on the following criteria : 1. Company's market capitalisation rank in the universe should be less than 500. 2. Company's trading frequency should be at least 90% in the last six months. 3. Company should have a minimum track record of 3 years of operations with a positive networth.
58
4. A company which comes out with a IPO will be eligible for inclusion in the index, if it fulfills the normal eligiblity criteria for the index for a 3 month period instead of a 6 month period.
Britannia Industries Ltd Colgate Palmolive (India) Ltd. Dabur India Ltd Gillette India Ltd.
BRITANNIA
EQ
INE216A01014
PERSONAL CARE
EQ
INE259A01022 D
DABUR GILLETTE
EQ EQ
INE016A01026 INE322A01010
GlaxoSmithkline FOOD AND FOOD Consumer Healthcare Ltd. Godrej Consumer Products Ltd. Hindustan Unilever Ltd. DIVERSIFIED PERSONAL CARE PROCESSING
GSKCONS
EQ
INE264A01014
GODREJCP
EQ
INE102D01028
HINDUNILVR,
EQ
INE030A01027
59
I T C Ltd. Jyothy Laboratories Ltd. Marico Ltd., Nirma Ltd. Pantaloon Retail (India) Ltd. Procter & Gamble Hygiene & Health Care Ltd. Tata Tea Ltd. United Spirits Ltd.
ITC JYOTHYLAB
EQ EQ
INE154A01025 INE668F01031
MARICO NIRMA
EQ EQ
PANTALOONR EQ
PERSONAL CARE
PGHH
EQ
INE179A01014
TATATEA
EQ EQ
INE192A01017 INE854D01016
BREW/DISTILLERIES MCDOWELL-N
60
issues of PSEs, IISL has developed the CNX PSE Index, comprising of 20 PSE stocks. The CNX PSE Index includes only those companies that have over 51% of their outstanding share capital held by the Central Government and/or State Government, directly or indirectly. Methodology The CNX PSE Index is calculated using the market capitalisation weighted aggregate method. The base period is the month of December 1994, index to a value 1000. Selection Criteria Selection of the index set is based on the following criteria : 1. Company's market capitalisation rank in the universe should be less than 500 2. Company's turnover rank in the universe should be less than 500 3. Company's trading frequency should be at least 90% in the last six months 4. Company should have a minimum track record of 3 years of operations with a positive networth. 5. A company which comes out with a IPO will be eligible for inclusion in the index, if it fulfills the normal eligibility criteria for the index for a 3 month period instead of a 6 month period.
61
Bharat Electronics Ltd. Bharat Heavy Electricals Ltd. Bharat Petroleum Corporation Ltd. Container Corporation of India Ltd. Engineers India Ltd. GAIL (India) Ltd. Hindustan Petroleum Corporation Ltd. Indian Oil Corporation Mahanagar Telephone Nigam Ltd. Mangalore Refinery & Petrochemicals
EQ
INE263A01016
ELECTRICAL EQUIPMENT
BHEL
EQ
INE257A01018
REFINERIES
BPCL
EQ
INE029A01011
CONCOR
EQ
INE111A01017
ENGINEERING
ENGINERSIN
EQ
INE510A01010
GAS
GAIL
EQ
INE129A01019
REFINERIES
HINDPETRO
EQ
INE094A01015
REFINERIES
IOC
EQ
INE242A01010
TELECOMMUNICATION SERVICES
MTNL
EQ
INE153A01019
REFINERIES
MRPL
EQ
INE103A01014
62
Ltd. NMDC Ltd. NTPC Ltd. National Aluminium Co. Ltd. Neyveli Lignite Corporation Ltd. Oil & Natural Gas Corporation Ltd Power Finance Corporation Ltd. Power Grid Corporation of India Ltd. Shipping Corporation of India Ltd. Steel Authority of India Ltd. STEEL AND STEEL PRODUCTS SAIL EQ INE114A01011 SHIPPING SCI EQ INE109A01011 POWER POWERGRID EQ INE752E01010 FINANCIAL INSTITUTION PFC EQ INE134E01011 ,OIL EXPLORATION/PRODUCTION ONGC EQ INE213A01011 POWER NEYVELILIG EQ INE589A01014 MINING POWER ALUMINIUM NMDC NTPC EQ EQ INE584A01023 INE733E01010 INE139A01026
NATIONALUM EQ
63
The CNX MNC Index comprises 15 listed companies in which the foreign shareholding is over 50% and / or the management control is vested in the foreign company.
Methodology
The CNX MNC Index is calculated using the market capitalisation weighted method, wherein individual stocks are weighted by market value. The base period is the month of December, 1994 indexed to a value 1000.
Selection Criteria
Selection of the index set is based on the following criteria : 1. Company's market capitalisation rank in the universe should be less than 500 2. Company's trading frequency should be at least 90% in the last six months 3. Company should have a minimum track record of 3 years of operations with a positive networth. 4. A company which comes out with a IPO will be eligible for inclusion in the index, if it fulfills the normal eligibility criteria for the index for a 3 month period instead of a 6 month period.
Company Name
Industry
Symbol
Series
ISIN Code
ABB Ltd.,ELECTRICAL
EQUIPMENT
ABB
EQ
INE117A01022
ACC Ltd.
ACC
EQ
INE012A01025
ABAN
EQ
INE421A01028
Bosch Ltd.
BOSCHLTD
EQ
INE323A01026
OIL EXPLORATION/PRODUCTION
CAIRN
EQ
INE910H01017
PERSONAL CARE
COLPAL
EQ
INE259A01022
DIESEL ENGINES
CUMMINSIND
EQ
INE298A01020
Glaxosmithkline Pharmaceuticals Ltd. Hindustan Unilever Ltd. Maruti Suzuki India Ltd.
PHARMACEUTICALS,
GLAXO
EQ
INE159A01016
DIVERSIFIED
HINDUNILVR
EQ
INE030A01027
AUTOMOBILES - 4 WHEELERS
MARUTI
EQ
INE585B01010
65
MphasiS Ltd.
COMPUTERS - SOFTWARE
MPHASIS
EQ
INE356A01018
COMPUTERS - SOFTWARE
OFSS
EQ
INE881D01027
PHARMACEUTICALS,
RANBAXY
EQ
INE015A01028
MINING
SESAGOA
EQ
INE205A01025
ELECTRICAL EQUIPMENT
SIEMENS
EQ
INE003A01024
66
Education and Training, Banks, Telecommunication services, Financial Institutions, Power, Media, Courier, Shipping etc.
Methodology
The CNX Service Sector Index is calculated using the market capitalization weighted aggregate method. The base period is the month of May 1999, index to a value 1000.
Selection Criteria
Selection of the index set is based on the following criteria : 1. Company's market capitalisation rank in the universe should be less than 500 2. Company's turnover rank in the universe should be less than 500 3. Company's trading frequency should be at least 90% in the last six months 4. Company should have a positive networth. 5. A company which comes out with a IPO will be eligible for inclusion in the index, if it fulfills the normal eligiblity criteria for the index for a 3 month period instead of a 6 month period.
EQ EQ
INE238A010 26
Bank of
BANKS
BANKBARO
INE028A010
67
DA BANKINDIA
13
EQ EQ EQ EQ EQ
INE084A010 16
BHARTIART L CANBK
INE397D010 24 INE476A010 14
GAIL (India) Ltd. HCL Technologies Ltd. HDFC Bank Ltd Housing Development Finance Corporation Ltd. ICICI Bank Ltd. Idea Cellular Ltd. Indian Hotels Co. Ltd.
GAS
GAIL
INE129A010 19
COMPUTERS SOFTWARE
HCLTECH
INE860A010 27
BANKS
HDFCBANK
EQ EQ
INE040A010 18
FINANCE HOUSING
HDFC
INE001A010 28
BANKS
ICICIBANK
EQ EQ EQ
INE090A010 13
IDEA
INE669E010 16
INDHOTEL
INE053A010 29
68
COMPUTERS SOFTWARE
INFOSYSTC H
EQ
INE009A010 21
BANKS
KOTAKBAN K
EQ
INE237A010 10
POWER
NTPC
EQ
INE733E010 10
Neyveli Lignite Corporation Ltd. Oracle Financial Services Software Ltd. Power Grid Corporation of India Ltd. Punjab National Bank Reliance Capital Ltd. Reliance Communicati ons Ltd.
POWER
NEYVELILIG EQ
INE589A010 14
COMPUTERS SOFTWARE
OFSS
EQ
INE881D010 27
POWER
POWERGRI D
EQ
INE752E010 10
BANKS
PNB
EQ EQ EQ
INE160A010 14
FINANCE
RELCAPITA L
INE013A010 15 INE330H010 18
RCOM
69
POWER
RELINFRA
EQ
INE036A010 16
POWER
POWER
EQ EQ
INE614G010 33
BANKS State Bank of India Tata Communicati ons Ltd. Tata Consultancy Services Ltd. Tata Power Co. Ltd. Tech Mahindra Ltd. Wipro Ltd. COMPUTERS SOFTWARE COMPUTERS SOFTWARE Zee Entertainmen t Enterprises Ltd. MEDIA & ENTERTAINMENT POWER COMPUTERS SOFTWARE TELECOMMUNICAT ION - SERVICES
SBIN
INE062A010 12
TATACOMM
EQ
INE151A010 13
TCS
EQ
INE467B010 29
TATAPOWE R TECHM
EQ EQ EQ EQ
INE245A010 13 INE245A010 13
WIPRO
INE075A010 22
ZEEL
INE256A010 28
70
71
performance of the companies in this sector. Energy sector Index will include companies belonging to Petroleum, Gas and Power sub sectors. The CNX Energy Index represents about 87.37% and 80.55% of the market capitalization and turnover of the last six months for the period March 31, 2009 of the Energy Sector Universe respectively . The total traded value for the last six months of all CNX Energy Index constituents is approximately 16.88% of the traded value of all stocks on the NSE. CNX Energy Index constituents represent about 27.35% of the total market capitalization as on March 31, 2009.
Methodology
The index is a market capitalization weighted index with base date of January 1, 2001, indexed to a base value of 1000.
Selection Criteria Selection of the index set is based on the following criteria :
72
5. A company, which comes out with an IPO, will be eligible for inclusion
in the index, if it fulfills the normal eligibility criteria for the index for a 3 month period instead of a 6 month period.
REFINERIES
BPCL
EQ
INE029A01011
OIL EXPLORATION/PRODUCTION
CAIRN
INE910H01017
GAS
GAIL
INE129A01019
REFINERIES
IOC
INE242A01010
NTPC Ltd.
POWER
NTPC
INE733E01010
OIL EXPLORATION/PRODUCTION
ONGC
INE213A01011
73
POWER
POWERGRID
INE752E01010
REFINERIES
RELIANCE
INE002A01018
POWER
RPOWER
INE614G01033
10
POWER
TATAPOWER
INE245A01013
74
for the period March 31, 2009 of the Pharmaceuticals Sector Universe respectively. The total traded value for the last six months of all CNX Pharma Index constituents is approximately 1.96% of the traded value of all stocks on the NSE. CNX Pharma Index constituents represent about 3.03% of the total market capitalization as on March 31, 2009.
Methodology
The index is a market capitalization weighted index with base date of January 1, 2001, indexed to a base value of 1000.
Selection Criteria
Selection of the index set is based on the following criteria : 1. Company's market capitalisation rank in the universe should be less than 500 2. Company's turnover rank in the universe should be less than 500 3. Company's trading frequency should be at least 90% in the last one year. 4. Company should have a minimum track record of 3 years of operations with a positive networth. 5. A company, which comes out with an IPO, will be eligible for inclusion in the index, if it fulfills the normal eligiblity criteria for the index for a 3 month period instead of a 6 month period.
Industry
Symbol
75
Biocon Ltd.
PHARMACEUTICALS
BIOCON
EQ
INE376G01 013
Cipla Ltd.
PHARMACEUTICALS
CIPLA
EQ
INE059A01 026
PHARMACEUTICAL
DIVISLAB
EQ
INE361B01 024
PHARMACEUTICALS
DRREDDY
EQ
INE089A01 023
PHARMACEUTICALS
GLAXO
EQ
INE159A01 016
PHARMACEUTICALS
GLENMARK
EQ
INE935A01 035
Lupin Ltd.,PHARMACEUTICALS.
PHARMACEUTICALS
LUPIN
EQ
INE326A01 029
PHARMACEUTICALS
PIRHEALTH
EQ
INE140A01 024
PHARMACEUTICALS
RANBAXY
EQ
INE015A01 028
10.
PHARMACEUTICALS
SUNPHARMA
EQ
INE044A01 028
R.CNX INFRASTRUCTURE
76
It is well recognized that quality infrastructure is one of the most important necessities for unleashing high and sustained growth. Government outlay for infrastructure has increased significantly over the years. Clearly, infrastructure has been a focus area. Over the years, not only have the outlays for budgetary expenditure towards the infrastructure sector been increasing, but private investment is also being encouraged. Earlier, the emphasis was on bringing in more and more projects, now the emphasis also includes encouraging financial products suited for infrastructure. To meet the financial needs of this public-private partnership, it is necessary to promote standards and raise capital in the most efficient and cost-effective manner while ensuring long-term sustainability. Recognizing the needs of the market, IISL has developed CNX Infrastructure Index to capture the performance of the companies in the infrastructure sector. CNX Infrastructure Index will include companies belonging to Telecom, Power, Port, Air, Roads, Railways, shipping and other Utility Services providers. The 25-stock CNX Infrastructure Index represents about 78.77% of the market capitalization and 77.07% of aggregate turnover of the companies forming part of the Infrastructure Sector Universe for the last six months (period ending March 31, 2009). The total traded value for the last six months of all CNX Infrastructure Index constituents is approximately 25.26% of the traded value of all stocks on the NSE. CNX Infrastructure Index constituents represent about 21.43% of the total market capitalization as on March 31, 2009.
Methodology
77
The index is a market capitalization weighted index with base date of January 1, 2004, indexed to a base value of 1000.
Selection Criteria
Selection of the index set is based on the following criteria: 1. Company's market capitalisation rank in the universe should be less than 500 2. Company's turnover rank in the universe should be less than 500. 3. Company should have a positive Net worth. 4. A company, which comes out with an IPO, will be eligible for inclusion in the index, if it fulfills the normal eligibility criteria for the index for a 3 month period instead of a 6 month period. 5. The constituents should be available for trading in the derivatives segment (Stock Futures & Options market) on NSE.
ELECTRICAL EQUIPMENT
BHEL
EQ
INE257A010 18
TELECOMMUNICAT
BHARTIART
EQ
INE397D010
78
L CROMPGRE AV DLF EQ EQ
24 INE067A010 29 INE271C010 23
GMR Infrastructure Ltd. IRB Infrastructure Developers Ltd. Idea Cellular Ltd. Indian Hotels Co. Ltd. Jaiprakash Associates Lanco Infratech Ltd. Larsen & Toubro Ltd. Mahanagar Telephone Nigam Ltd.
CONSTRUCTION
GMRINFRA
EQ
INE776C010 39
IRB
EQ
INE821I010 14
IDEA
EQ
INDHOTEL
EQ
DIVERSIFIED
JPASSOCIA T
EQ
CONSTRUCTION
LITL
EQ
ENGINEERING
LT
EQ
MTNL
EQ
79
NTPC Ltd. Neyveli Lignite Corporation Punj Lloyd Ltd. Reliance Communicati ons Ltd. Reliance Infrastructure Ltd. Reliance Power Ltd. Shipping Corporation of India Ltd. Siemens Ltd.
POWER POWER
NTPC
EQ
NEYVELILIG EQ
INE733E010 10 INE589A010 14
CONSTRUCTION
PUNJLLOYD EQ
INE701B010 21 INE330H010 18
RCOM
EQ
POWER
RELINFRA
EQ
INE036A010 16
POWER
RPOWER
EQ
INE614G010 33 INE109A010 11
SHIPPING
SCI
EQ
ELECTRICAL EQUIPMENT
SIEMENS
EQ
SUZLON
EQ
TATACOMM
EQ
POWER
TATAPOWE
EQ
INE245A010 13
80
R UNITECH EQ INE694A010 20
full market capitalization and total turnover respectively of the last six months (for the period ended March 31, 2009) of the PSU Banks (sector) Universe respectively. The total total traded value for the last six months of all CNX PSU Bank Index constituents is approximately 5.94% of the traded value of all stocks on the NSE. CNX PSU Banks Index constituents represent about 4.52 % of the total market capitalization (Full Market Capitalistaion) as on March 31, 2009. Methodology The index is a Free Float methodology based weighted index with base date of January 1, 2004, indexed to a base value of 1000. Selection Criteria Selection of the index set is based on the following criteria: 1. Constituent should be a Public sector bank 2. Constituents market capitalization rank in the universe should be among the top 500. 3. Constituents turnover rank in the universe should be in the top 500. 4. Constituent should have a positive Net worth. 5. The constituents should be available for trading in the derivatives segment (Stock Futures & Options market) on NSE. Constituents list of CNX PSU BANK
Company Name Andhra Bank Bank of Baroda Industry BANKS BANKS Symbol ANDHRABANK BANKBARODA Series EQ EQ ISIN Code INE434A01013 INE028A01013
82
Bank of India Canara Bank Corporation Bank Indian Overseas Industrial Development Bank of India Ltd. Oriental Bank of Commerce Punjab National Bank State Bank of India Syndicate Bank
EQ EQ EQ EQ EQ
EQ EQ EQ EQ EQ
83
Further necessitated by the thrust of redevelopment of old buildings, building townships and redeveloping mill lands, one can witness plenty of opportunities in real estate sector backed by favourable tax regime. IISL has developed the CNX Realty Index to synergize these emerging opportunities along with their Index expertise creating new investment avenues for investors. The CNX Realty Index represents about 85.26% and 87.66% of the full market capitalization and total turnover of the last six month for the period March 31, 2009 of the Real estate sector Universe respectively. The total traded value for the last six months of all CNX Realty Index constituents is approximately 7.38% of the traded value of all stocks on the NSE. CNX Realty Index constituents represent about 1.47% of the total market capitalization (Full Market Capitalisation) as on March 31, 2009. Methodology The index is a Free Float methodology based weighted index with base date of December 29, 2006, indexed to a base value of 1000. Selection Criteria Selection of the index set is based on the following criteria: 1. Constituent should be a Real Estate Company. 2. Company's market capitalization rank in the universe should be among the top 500. 3. Companys turnover rank in the universe should be in the top 500. 4. Company should have a positive Net worth.
84
5. A company, which comes out with an IPO, will be eligible for inclusion in the index, if it fulfills the normal eligibility criteria for the index for a 1-month period. Constituents list of CNX Realty
Company Name Anant Raj Industries DLF Ltd. Housing Development and Infrastructure Ltd. Indiabulls Real Estate Ltd. Mahindra Lifespace Developers Ltd. Parsvnath Developer Peninsula Land Phoenix Mills CONSTRUCTION PHOENIXLTD EQ INE211B01039 CONSTRUCTION PENINLAND EQ INE138A01028 CONSTRUCTION PARSVNATH EQ INE561H01018 CONSTRUCTION MAHLIFE EQ INE813A01018 CONSTRUCTION IBREALEST EQ INE069I01010 CONSTRUCTION CONSTRUCTION DLF HDIL EQ EQ INE271C01023 INE191I01012 CONSTRUCTION ANANTRAJ EQ INE242C01024 Industry Symbol Series ISIN Code
85
CONSTRUCTION
SOBHA
EQ
INE671H01015
CONSTRUCTION
UNITECH
EQ
INE694A01020
01 February, 1999
BSE FMCG
01 February, 1999
BSE Healthcare
01 February, 1999
86
BSE IT
01 February, 1999
1000
BSE Metal BSE Oil & Gas BSE Power Index BSE Realty
capitalization 09 August, 1999 Launched on full market capitalization method and effective August 23, 2004, calculation method shifted to free-float market capitalization 23 August, 2004 Free-float market capitalization 23 August, 2004 Free-float market capitalization 09 November, Free-float market 2007 capitalization 09 July, 2007 Free-float market capitalization
1000
87
Convertibles and Warrants etc. What are Futures ? It is an Agreement between the Buyer and the Seller for the Purchase or Sell of a Particular Asset ( like Equity Stock/ Index etc) at a Specified Price and on a specified future date (1 Month/ 2 Months/ 3 Months). It conveys an OBLIGATION on both Buyer and Seller to Fulfill the Terms of the Agreement. Futures are Settled on Last Thursday of the Specified Month and both buyer and seller have to pay minimum Initial Margin as per the requirement of stock exchange and account between buyer and seller is settled Everyday till the expiry of the Futures contract. Nifty Future contract have a multiplier of 200 whereas in case of BSE Sensex, the multiplier is 50 that means Nifty Futures contract gives rise to an obligation to deliver at settlement cash payment equal to 200 times ( 50 times in case of BSE Sensex Futures) the difference between the Nifty Index value at the close of the last trading day of the contract and the price at which the Futures Contract was negotiated. Example Suppose 'A' enters (Buys) a Nifty futures contract at 1225 for July (expiring on last Thursday of July) with 'B'. Both 'A' & 'B' will deposite the required margin with the Stock exchange. On last Thursday of July, Nifty closes at 1267. Now 'A' will get Rs. 8400/- {( 1267-1225) x 200 = 8400} from 'B'. In case Nifty closes at 1157, 'B' will get Rs. 13600/- {(1225-1157) x 200 = 13600 } from 'A'. ( BSE Sensex contract will carry a multiplier of 50 instead of 200 as in case of Nifty.) But their account will be credited or debited from their Margin Account and their position will be 'marked to market' at the end of
88
session each day. In case the Margin account falls below the maintenence level, cash is sought from the customer to replenish the margin account back to original level. Either of the customers having surplus margin beyond original margin can withdraw the funds. What are Options ? An option is a contract, which gives the Buyer of Option (holder) the right, but not the obligation, to Buy or Sell specified quantity of the underlying assets, at a Specific (Strike) Price on or before a Specified Time (expiration date) i.e 1 Month/ 2 Months/ 3 Months etc. The underlying may be physical commodities like wheat/ rice/ cotton/ gold/ oil or financial instruments like equity stocks/ stock index/ bonds etc. There are 2 types of Options i.e. Call Options and Put Options. CALL OPTIONS A Call Option gives the holder (buyer/ one who is long call), the right (No obligation) to buy specified quantity of the underlying asset at the strike price on or before expiration date. The seller (one who is short call) however, has the obligation to sell the underlying asset if the buyer of the call option decides to exercise his option to buy. Option buyer or option holder - Buys the right (No obligation) to buy the underlying asset at the specified price. Option seller or option writer - Has the obligation to sell the underlying asset (to the option holder) at the specified price PUT OPTIONS A Put Option gives the holder (buyer/ one who is long Put), the right (No obligation) to sell specified quantity of the underlying asset at the strike price on or before a expiry date. The seller of the put option (one who is short Put) however, has the obligation to buy the underlying
89
asset at the strike price if the buyer decides to exercise his option to sell. Option buyer or option holder - Buys (No obligation) the right to sell the underlying asset at the specified price. Option seller or option writer - Has the obligation to buy the underlying asset (from the option holder) at the specified price. When to Buy a Call Option. If you are Bullish on a particular Scrip/Index. For example, you are Bullish on Reliance (CMP- Rs.350/-) and expecting it to touch 450 in a month's time (or any particular period say 2/3 months). So you will Buy Reliance Call Option for 1 month (or any particular period) by paying a premium of Rs.10/share (Say). During the course of month you will get Right to excercise your Call Option to Buy Reliance at 350 from the seller of Call Option. Suppose it does not move up, you are free NOT to excercise your option to Buy and your loss is limited to the Premium you have paid. When to Buy a Put Option If you are Bearish on a particular Scrip/Index. For example, you are Bearish on ACC (CMP -Rs.150/-) and expecting it to touch 100/- in a month's time. So you will Buy ACC Put Option for 1 month by paying a premium of Rs.5/share (Say). During the course of month (you are Free to Buy ACC from market any time at lower price) you will get Right to excercise your Put Option to Sell ACC at 150/- to the seller of Put Option. Suppose it does not decline, you are free NOT to excercise your option to Sell and your loss is limited to the Premium you have paid. When to Sell a Call Option. If you are Bearish on a particular Scrip/Index. For example, you are Bearish on Infosys (CMP- Rs.3800/-) and expect that it will not move
90
up significantly(or rather decline) in a month's time. So you will Sell Infosys Call Option at a strike rate Rs.3900/- (say) for 1 month and Receive the Premium. (Say Rs.100/share). During the course of month Buyer of Call Option will have Right (Not the Obligation) to take Infosys at 3900/- from you and you are obliged to honour your commitment. Remember that you are Holding risk of umlimited loss if Price of Infosys moves up significantly just at the cost of Premium you have received.(you should sell Call Option Only if you are sure that Price of Share will Fall/or not move up or you are holding shares with you to part with, if required) When to Sell a Put Option If you are Bullish on a particular Scrip/Index. For example, you are Bullish on Satyam (CMP - Rs.200/-) and expect that it will not Decline significantly (or rather move up) in a month's time. So you will Sell Satyam Put Option at a strike rate Rs.215/- (say) for 1 month and Receive the Premium. (Say Rs.12/share). During the course of month Buyer of Put Option will have Right (Not the Obligation) to Sell Satyam at 215/- to you and you are obliged to honour your commitment. Remember that you are Holding risk of umlimited loss if Price of Satyam goes down at the cost of Premium you have received. (you should Sell Put Option Only if you are sure that Price of Share will Move up or you will take Delivery of shares, if required) How are Options different from Futures The significant differences in Futures and Options are as under: 1. Futures are agreements/contracts to buy or sell specified quantity of the underlying assets at a price agreed upon by the buyer & seller, on or before a specified time. Both the buyer and seller are obligated to buy/sell the underlying asset.
91
2. In case of Options the buyer enjoys the right & not the obligation, to buy or sell the underlying asset. 3. Futures Contracts have symmetric risk profile for both the buyer as well as the seller, whereas options have asymmetric risk profile. In case of Options, for a buyer (or holder of the option), the downside is limited to the premium (option price) he has paid while the profits may be unlimited. For a seller or writer of an Options however, the downside is unlimited while profits are limited to the premium he has received from the buyer. 4. The Futures contracts prices are affected mainly by the prices of the underlying asset. The prices of Options are however, affected by prices of the underlying asset, time remaining for expiry of the contract & volatility of the underlying asset. 5. It costs nothing to enter into a Futures contract whereas there is a cost of entering into an Options contract, termed as Premium. What is Assignment When holder of an option exercises his right to buy/ sell, a randomly selected option seller is assigned the obligation to honor the underlying contract, and this process is termed as Assignment. What are European & American Style of options An American style option is the one which can be exercised by the buyer on or before the expiration date, i.e. anytime between the day of purchase of the option and the day of its expiry. The European kind of option is the one which can be exercised by the buyer on the expiration day only & not anytime before that. What is an Option Calculator
92
An option calculator is a tool to calculate the price of an Option on the basis of various influencing factors like the price of the underlying and its volatility, time to expiry, risk free interest rate etc. It also helps the user to understand how a change in any one of the factors or more, will affect the option price. Who are the likely players in the Options Market Financial institutions, Mutual Funds, Domestic & Foreign Institutional Investors, Brokers, Retail Participants are the likely players in the Options Market. What are Stock Index Options ? The Stock Index Options are options where the underlying asset is a Stock Index for e.g. Options on S&P 500 Index/ Options on BSE Sensex etc. Index Options were first introduced by Chicago Board of Options Exchange (CBOE) in 1983 on its Index S&P 100. As opposed to options on Individual stocks, index options give an investor the right to buy or sell the value of an index which represents group of stocks. What are the uses of Index Options ? Index options enable investors to gain exposure to a broad market, with one trading decision and frequently with one transaction. To obtain the same level of diversification using individual stocks or individual equity options, numerous decisions and trades would be necessary. Since, broad exposure can be gained with one trade, transaction cost is also reduced by using Index Options. As a percentage of the underlying value, premiums of index options are usually lower than those of equity options as equity options are more volatile than the Index. Who would use index options ?
93
Index Options are effective enough to appeal to a broad spectrum of users, from conservative investors to more aggressive stock market traders. Individual investors might wish to capitalize on market opinions (bullish, bearish or neutral) by acting on their views of the broad market or one of its many sectors. The more sophisticated market professionals might find the variety of index option contracts excellent tools for enhancing market timing decisions and adjusting asset mixes for asset allocation. To a market professional, managing the risk associated with large equity positions may mean using index options to either reduce their risk or to increase market exposure. What are Options on individual stocks ? Options contracts where the underlying asset is an equity stock, are termed as Options on stocks. They are mostly American style options cash settled or settled by physical delivery. Prices are normally quoted in terms of the premium per share, although each contract is invariably for a larger number of shares, e.g. 100. What are Over the Counter Options ? OTC ("over the counter") options are those dealt directly between counter-parties and are completely flexible & customized . There is some standardization for ease of trading in the busiest markets, but the precise details of each transaction are freely negotiable between buyer and seller. What is the underlying in case of Options being introduced by BSE The underlying for the index options is the BSE 30 Sensex, which is the benchmark index of Indian Capital markets, comprising of 30 scrips. What will be the new margining system in the case of Options and futures?
94
A portfolio based margining model (SPAN), would be adopted which will take an integrated view of the risk involved in the portfolio of each individual client comprising of his positions in all the derivatives contract traded on the Derivatives Segment. The Initial Margin would be based on worst-case loss of the portfolio of a client to cover 99% VaR over two days horizon. The Initial Margin would be netted at client level and shall be on gross basis at the Trading/Clearing member level. The Portfolio will be marked to market on a daily basis. Important Terminology Underlying - The specific security / asset on which an options contract is based Option Premium - Premium is the price paid by the buyer to the seller to acquire the right to buy or sell Strike Price or Exercise Price - The strike or exercise price of an option is the specified/ pre-determined price of the underlying asset at which the same can be bought or sold if the option buyer exercises his right to buy/ sell on or before the expiration day. Expiration date -The date on which the option expires is known as Expiration Date. On Expiration date, either the option is exercised or it expires worthless. Exercise Date is the date on which the option is actually exercised. In case of European Options the exercise date is same as the expiration date while in case of American Options, the options contract may be exercised any day between the purchase of the contract & its expiration date (see European/ American Option)
95
Open Interest - The total number of options contracts outstanding in the market at any given point of time. Option Holder - is the one who buys an option which can be a call or a put option. He enjoys the right to buy or sell the underlying asset at a specified price on or before specified time. His upside potential is unlimited while losses are limited to the Premium paid by him to the option writer. Option seller/ writer - is the one who is obligated to buy (in case of Put option) or to sell (in case of call option), the underlying asset in case the buyer of the option decides to exercise his option. His profits are limited to the premium received from the buyer while his downside is unlimited. Option Class - All listed options of a particular type (i.e., call or put) on a particular underlying instrument, e.g., all Sensex Call Options (or) all Sensex Put Options Option Series - An option series consists of all the options of a given class with the same expiration date and strike price. E.g. BSXCMAY3600 is an options series which includes all Sensex Call options that are traded with Strike Price of 3600 & Expiry in May. (BSX Stands for BSE Sensex (underlying index), C is for Call Option , May is expiry date & strike Price is 3600).
96
Demat
It refers to a dematerialized account.
Though the company is under obligation to offer the securities in both physical and demat mode, you have the choice to receive the securities in either mode. If you wish to have securities in demat mode, you need to indicate the name of the depository and also of the depository participant with whom you have depository account in your application. It is, however desirable that you hold securities in demat form as physical securities carry the risk of being fake, forged or stolen. Just as you have to open an account with a bank if you want to save your money, make cheque payments etc, Nowadays, you need to open a demat account if you want to buy or sell stocks. So it is just like a bank account where actual money is replaced by shares. You have to approach the DPs (remember, they are like bank branches), to open your demat account. Let's say your portfolio of shares looks like this: 150 of Infosys, 50 of Wipro, 200 of HLL and 100
97
of ACC. All these will show in your demat account. So you don't have to possess any physical certificates showing that you own these shares. They are all held electronically in your account. As you buy and sell the shares, they are adjusted in your account. Just like a bank passbook or statement, the DP will provide you with periodic statements of holdings and transactions.
98
A safe and convenient way to hold securities; Immediate transfer of securities; No stamp duty on transfer of securities; Elimination of risks associated with physical certificates such as bad delivery, fake securities, delays, thefts etc.; Reduction in paperwork involved in transfer of securities; Reduction in transaction cost; No odd lot problem, even one share can be sold; Nomination facility; Change in address recorded with DP gets registered with all companies in which investor holds securities electronically eliminating the need to correspond with each of them separately; Transmission of securities is done by DP eliminating correspondence with companies; Automatic credit into demat account of shares, arising out of bonus/split/consolidation/merger etc.
99
100
Along with the NASDAQ Composite, the S&P 500 Index, and the Russell 2000 Index, the Dow is among the most closely-watched benchmark indices tracking targeted stock market activity. Although Dow compiled the index to gauge the performance of the industrial sector within the American economy, the index's performance continues to be influenced by not only corporate and economic reports, but also by domestic and foreign political events such as war and terrorism, as well as by natural disasters that could potentially lead to economic harm. Components of the Dow trade on both the NASDAQ OMX and the NYSE Euronext, two of the largest stock market companies. Derivatives of the Dow trade on the Chicago Board Options Exchange and through CME Group, the world's largest futures exchange company. Currently, the CME Group has signed a deal with Dow Jones to acquire 90% of the latter firm's indexing business, including the Dow Jones Industrial Average.[2][3]
INDUSTRY
Conglomerate
SYMBOL
MMM
DATE ADDED
1976-08-09 (as Minnesota Mining and Manufacturing) 1959-06-01 (as Aluminum Company of America) 1982-08-30 1999-11-01 (as SBC Communications) 2008-02-19 1987-03-12 1991-05-06 2008-02-19 2009-06-08
Alcoa American Express AT&T Bank of America Boeing Caterpillar Chevron Corporation Cisco Systems
Aluminum Consumer finance Telecommunication Banking Aerospace and defense Construction and mining equipment Oil & gas Computer networking
101
Coca-Cola DuPont ExxonMobil General Electric Hewlett-Packard The Home Depot Intel IBM Johnson & Johnson JPMorgan Chase Kraft Foods McDonald's Merck Microsoft Pfizer Procter & Gamble Travelers United Technologies Corporation Verizon Communications Wal-Mart Walt Disney
Beverages Chemical industry Oil & gas Conglomerate Technology Home improvement retailer Semiconductors Computers and technology Pharmaceuticals Banking Food processing Fast food Pharmaceuticals Software Pharmaceuticals Consumer goods Insurance Conglomerate Telecommunication Retail Broadcasting and entertainment
KO DD XOM GE HPQ HD INTC IBM JNJ JPM KFT MCD MRK MSFT PFE PG TRV UTX VZ WMT DIS
1987-03-12 1935-11-20 (also 192401-22 to 1925-08-31) 1928-10-01 (as Standard Oil) 1907-11-07 1997-03-17 1999-11-01 1999-11-01 1979-06-29 1997-03-17 1991-05-06 (as J.P. Morgan & Company) 2008-09-22 1985-10-30 1979-06-29 1999-11-01 2004-04-08 1932-05-26 2009-06-08 1939-03-14 (as United Aircraft) 2004-04-08 1997-03-17 1991-05-06
102
The NASDAQ Stock Market, known as NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations," but the exchange's official stance is that the acronym is obsolete.[1] It is the largest electronic screen-based equity securities trading market in the United States. With approximately 3,700 companies and corporations, it has more trading volume than any other stock exchange in the world. OTHER DETAILS:Location New York City, USA Founded February 8, 1971 Owner The NASDAQ OMX Group
Key people Robert Greifeld (CEO) Currency USD No. of listings 3,800~ NASDAQ Composite NASDAQ-100 Indexes NASDAQ Biotechnology Index Website www.nasdaq.com
103
104
Stock Exchange. Unlike the Hong Kong Stock Exchange, the Shanghai Stock Exchange is still not entirely open to foreign investors [1] due to tight capital account controls exercised by the Chinese mainland authorities.[2] The current exchange was re-established on November 26, 1990 and was in operation on December 19 of the same year. It is a non-profit organization directly administered by the China Securities Regulatory Commission (CSRC). Location Shanghai, China Founded 1891 Key people Geng Liang (Chairman) William C. Bassell (President) Currency RMB No. of listings 860 MarketCap USD $3.21 trillion (2009) Indexes SSE Composite SSE 180 SSE 50 Website www.sse.com.cn
106
107
(now Euronext Paris). It is one of the main national indices of the pan-European stock exchange group Euronext alongside Brussels' BEL20, Lisbon's PSI20 and Amsterdam'sAEX
Foundation 1987 Operator Euronext Exchanges Euronext Paris Constituents 40 Type Large cap Market cap 1.031 trillion (end 2009)[1] Weighting Market value-weighted method Related CAC Next 20, CAC Mid indices 100, CAC Small 90
rich heritage, now spanning three centuries in its 133 years of existence. What is now popularly known as BSE was established as "The Native Share & Stock Brokers' Association" in 1875. BSE is the first stock exchange in the country which obtained permanent recognition (in 1956) from the Government of India under the Securities Contracts (Regulation) Act 1956. BSE's pivotal and preeminent role in the development of the Indian capital market is widely recognized. It migrated from the open outcry system to an online screen-based order driven trading system in 1995. Earlier an Association Of Persons (AOP), BSE is now a corporatised and demutualised entity incorporated under the provisions of the Companies Act, 1956, pursuant to the BSE (Corporatisation and Demutualisation) Scheme, 2005 notified by the Securities and Exchange Board of India (SEBI). With demutualisation, BSE has two of world's best exchanges, Deutsche Borse and Singapore Exchange, as its strategic partners. Over the past 133 years, BSE has facilitated the growth of the Indian corporate sector by providing it with an efficient access to resources. There is perhaps no major corporate in India which has not sourced BSE's services in raising resources from the capital market. Today, BSE is the world's number 1 exchange in terms of the number of listed companies and the world's 5th in transaction numbers. The market capitalization as on December 31, 2007 stood at USD 1.79 trillion . An investor can choose from more than 4,700 listed companies, which for easy reference, are classified into A, B, S, T and Z groups. The BSE Index, SENSEX, is India's first stock market index that enjoys an iconic stature , and is tracked worldwide. It is an index of 30 stocks
109
representing 12 major sectors. The SENSEX is constructed on a 'freefloat' methodology, and is sensitive to market sentiments and market realities. Apart from the SENSEX, BSE offers 21 indices, including 12 sectoral indices. BSE has entered into an index cooperation agreement with Deutsche Borse. This agreement has made SENSEX and other BSE indices available to investors in Europe and America. Moreover, Barclays Global Investors (BGI), the global leader in ETFs through its iShares brand, has created the 'iShares BSE SENSEX India Tracker' which tracks the SENSEX. The ETF enables investors in Hong Kong to take an exposure to the Indian equity market. BSE has tied up with U.S. Futures Exchange (USFE) for U.S. dollardenominated futures trading of SENSEX in the U.S. The tie-up enables eligible U.S. investors to directly participate in India's equity markets for the first time, without requiring American Depository Receipt (ADR) authorization. The first Exchange Traded Fund (ETF) on SENSEX, called "SPIcE" is listed on BSE. It brings to the investors a trading tool that can be easily used for the purposes of investment, trading, hedging and arbitrage. SPIcE allows small investors to take a long-term view of the market. BSE provides an efficient and transparent market for trading in equity, debt instruments and derivatives. It has a nation-wide reach with a presence in more than 359 cities and towns of India. BSE has always been at par with the international standards. The systems and processes are designed to safeguard market integrity and enhance transparency in operations. BSE is the first exchange in India and the second in the world to obtain an ISO 9001:2000 certification. It is also the first exchange in the country and second in the world to receive Information Security Management System Standard BS 7799-2-2002 certification for its BSE On-line Trading System (BOLT).
110
BSE continues to innovate. In recent times, it has become the first national level stock exchange to launch its website in Gujarati and Hindi to reach out to a larger number of investors. It has successfully launched a reporting platform for corporate bonds in India christened the ICDM or Indian Corporate Debt Market and a unique ticker-cumscreen aptly named 'BSE Broadcast' which enables information dissemination to the common man on the street. In 2006, BSE launched the Directors Database and ICERS (Indian Corporate Electronic Reporting System) to facilitate information flow and increase transparency in the Indian capital market. While the Directors Database provides a single-point access to information on the boards of directors of listed companies, the ICERS facilitates the corporates in sharing with BSE their corporate announcements. BSE also has a wide range of services to empower investors and facilitate smooth transactions: Investor Services: The Department of Investor Services redresses grievances of investors. BSE was the first exchange in the country to provide an amount of Rs.1 million towards the investor protection fund; it is an amount higher than that of any exchange in the country. BSE launched a nationwide investor awareness programme- 'Safe Investing in the Stock Market' under which 264 programmes were held in more than 200 cities. The BSE On-line Trading (BOLT): BSE On-line Trading (BOLT) facilitates on-line screen based trading in securities. BOLT is currently operating in 25,000 Trader Workstations located across over 359 cities in India. BSEWEBX.com: In February 2001, BSE introduced the world's
111
first centralized exchange-based Internet trading system, BSEWEBX.com. This initiative enables investors anywhere in the world to trade on the BSE platform. Surveillance: BSE's On-Line Surveillance System (BOSS) monitors on a real-time basis the price movements, volume positions and members' positions and real-time measurement of default risk, market reconstruction and generation of cross market alerts. BSE Training Institute: BTI imparts capital market training and certification, in collaboration with reputed management institutes and universities. It offers over 40 courses on various aspects of the capital market and financial sector. More than 20,000 people have attended the BTI programmes Awards
The World Council of Corporate Governance has awarded the Golden Peacock Global CSR Award for BSE's initiatives in Corporate Social Responsibility (CSR). The Annual Reports and Accounts of BSE for the year ended March 31, 2006 and March 31 2007 have been awarded the ICAI awards for excellence in financial reporting. The Human Resource Management at BSE has won the Asia Pacific HRM awards for its efforts in employer branding through talent management at work, health management at work and excellence in HR through technology
Drawing from its rich past and its equally robust performance in the recent times, BSE will continue to remain an icon in the Indian capital market.
112
113
20 21 22 23 24 25 26 27 28 29 30
RELIANCE RELIANCE COMM. RELIANCE INFRA SBI STERLITE IND. SUN PHARMA TATA POWER TATA STEEL TATA MOTORS TCS WIPRO
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 June 2000. The following years witnessed rapid development of Indian capital market with introduction of internet trading, Exchange traded funds (ETF), stock derivatives and the first volatility index - IndiaVIX in April 2008, by NSE. August 2008 saw introduction of Currency derivatives in India with the launch of Currency Futures in USD INR by NSE. Interest Rate Futures was introduced for the first time in India by NSE on 31st August 2009, exactly after one year of the launch of Currency Futures. With this, now both the retail and institutional investors can participate in equities, equity derivatives, currency and interest rate derivatives, giving them wide range of products to take care of their evolving needs.
115
Cairn India Ltd. Cipla Ltd. DLF Ltd. GAIL (India) Ltd. Grasim Industries Ltd. HCL Technologies Ltd. HDFC Bank Ltd. Hero Honda Motors Ltd. Hindalco Industries Ltd. Hindustan Unilever Ltd. Housing Development Finance Corporation Ltd. I T C Ltd. ICICI Bank Ltd. Idea Cellular Ltd.
SERVICES OIL EXPLORATION/PRODUCTION PHARMACEUTICALS CONSTRUCTION GAS CEMENT AND CEMENT PRODUCTS COMPUTERS SOFTWARE BANKS AUTOMOBILES 2 AND 3 WHEELERS ALUMINIUM DIVERSIFIED FINANCE HOUSING
CAIRN CIPLA DLF GAIL GRASIM HCLTECH HDFCBANK HEROHONDA HINDALCO HINDUNILVR HDFC ITC ICICIBANK IDEA INFOSYSTCH LT M&M MARUTI NTPC NATIONALUM ONGC POWERGRID PNB RANBAXY RCOM RELIANCE RELINFRA RPL
CIGARETTES BANKS TELECOMMUNICATION SERVICES Infosys Technologies Ltd. COMPUTERS SOFTWARE Larsen & Toubro Ltd. ENGINEERING Mahindra & Mahindra AUTOMOBILES 4 Ltd. WHEELERS Maruti Suzuki India Ltd. AUTOMOBILES 4 WHEELERS NTPC Ltd. POWER National Aluminium Co. ALUMINIUM Ltd. Oil & Natural Gas OIL Corporation Ltd. EXPLORATION/PRODUCTION Power Grid Corporation POWER of India Ltd. Punjab National Bank BANKS Ranbaxy Laboratories PHARMACEUTICALS Ltd. Reliance TELECOMMUNICATION Communications Ltd. SERVICES Reliance Industries Ltd. REFINERIES Reliance Infrastructure POWER Ltd. Reliance Petroleum Ltd. REFINERIES
116
Reliance Power Ltd. Satyam Computer Services Ltd. Siemens Ltd. State Bank of India Steel Authority of India Ltd. Sterlite Industries (India) Ltd. Sun Pharmaceutical Industries Ltd. Suzlon Energy Ltd. Tata Communications Ltd. Tata Consultancy Services Ltd. Tata Motors Ltd. Tata Power Co. Ltd. Tata Steel Ltd. Unitech Ltd. Wipro Ltd. Zee Entertainment Enterprises Ltd.
POWER COMPUTERS SOFTWARE ELECTRICAL EQUIPMENT BANKS STEEL AND STEEL PRODUCTS METALS PHARMACEUTICALS ELECTRICAL EQUIPMENT TELECOMMUNICATION SERVICES COMPUTERS SOFTWARE AUTOMOBILES 4 WHEELERS POWER STEEL AND STEEL PRODUCTS CONSTRUCTION COMPUTERS SOFTWARE MEDIA & ENTERTAINMENT
RPOWER SATYAMCOMP SIEMENS SBIN SAIL STER SUNPHARMA SUZLON TATACOMM TCS TATAMOTORS TATAPOWER TATASTEEL UNITECH WIPRO ZEEL
MSCI World
The MSCI World is a stock market index of 1500 'world' stocks. It is maintained by MSCI Inc., formerly Morgan Stanley Capital International, and is often used as a common benchmark for 'world' or 'global' stock funds. The index includes a collection of stocks of all the developed markets in the world, as defined by MSCI. The index includes securities from 23 countries but excludes stocks from
117
emerging economies making it less worldwide than the name suggests. A related index, the MSCI All Country World Index (ACWI), incorporated both developed and emerging countries. The MSCI World Index has been calculated since 1969,[1] in various forms: without dividends (Price Index), with net or with gross dividends reinvested (Net and Gross Index), in both US dollars and local currencies. Countries/regions Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germa ny, Greece, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain,Sweden, Switzerland, Uni ted Kingdom, United States
Conclusion
It is much easier to discuss the stock market if you understand some of the basic stock market terms. There is a large variety of stock market terms and learning them will not only help in your conversations but also to better comprehend.
118
QUESTIONNAIRE
Personal Information
Q1. In which of these Financial Instruments do you invest into? Shares Mutual Funds Bonds Derivatives
Q4. Do you know about the facilities provided by Reliance money? Yes No
119
Reliance money
ICICI Direct
Kotak Mahindra
India Bulls
Others (please specify) Q6. What differentiates your Share trading company from others? (in regards of brokerage, satisfaction, services, products )
Q7. Are you currently satisfied with your Share trading company? Yes No
Q9. What percentage of your earnings do you invest in share trading? Up to 10% Up to 25% Up to 50%
a. b. c. d. e.
Q14. What more facilities do you think you require with your DEMAT account?
120
OBSERVATION RESULTS
1. Preference of Investment
Interpretation: This shows that although the mutual funds market is on the rise yet, the most favored investment continues to be in the Share Market. So, with a more transparent system, investment in the Stock Market can definitely be increased.
121
Interpretation: With the increase in cyber education, the awareness towards online share trading has increased by leaps and bounds. This awareness is expected to increase further with the increase in Internet education.
Interpretation: This pie-chart shows that reliance money has a reasonable amount of Brand awareness in terms of a premier Retail stock broking company. This brand image should be further leveraged by the company to increase its market share over its competitors.
122
Interpretation: Although there is sufficiently high brand equity among the target audience yet, it is to be noted that the customers are not aware of the facilities provided by the company meaning thereby, that, the company should concentrate more towards promotional tools and increase its focus on product awareness rather than brand awareness.
Interpretation: This pie-chart corroborate the fact that Strategic marketing, today, has gone beyond only meeting Sales targets and generating profit volumes. It shows that all the competitors are striving hard not only to woo the customers but also to make them Brand loyal by generating customer satisfaction.
123
5. Frequency of Trading
Interpretation: Inspite of the huge returns that the share market promises, we see that there is still a dearth of active traders and investors. This is because of the non transparent structure of the Indian share market and the skepticism of the target audience that is generated by the volatility of the stock market. It requires efficient bureaucratic intervention on the part of the Government.
124
Interpretation: This shows that people invest only upto 10% of their earnings in the stock market, again reiterating the volatile and non-transparent structure of the Indian stock market. Hence, effective and efficient steps should be undertaken to woo the customers to invest more in the lucrative stock market .
Based on the findings of our project we would like to suggest the following: After sales services and follow up calls are important for getting new references so trained telesales should be appointed for this purpose whose sole work should be to make feedback calls. Reliance is having too many financial products right from Demat account to General Insurance and not all the salespeople are familiar with each and every product so the work force should be segregated each group dealing in a specific product and the sales target should be given likewise. While interacting with the investors I found that most of the customers are unaware about the Mutual fund. Some of the people
125
look upon mutual funds and equity trading as gambling. Thus a mutual fund awareness program can help to increase the penetration of mutual funds in the market. Reliance should declare in black ink that they will charge just 1 paisa per transaction. People tend to think that there must be some hidden charges.
Rs 1000 account opening charges are too high when targeting a corporate so the company should be flexible on this amount. Reliance should provide periodic training for updating the product knowledge of various financial advisors. Company should have a scheme of rewards and recognition to employees and the field persons to boost their motivation.
RANBAXY
PRICES Date Open High Low Close Volume Adj Close*
17-May-10 14-May-10 13-May-10 12-May-10 11-May-10 10-May-10 7-May-10 6-May-10 5-May-10 4-May-10
453.00 461.00 464.00 461.00 460.00 494.40 453.70 442.00 436.00 454.50
458.00 464.80 465.80 465.75 470.45 494.40 465.00 465.60 448.00 457.45
442.10 455.20 459.30 451.80 450.10 446.35 447.60 442.00 430.00 437.10
452.50 456.00 460.40 459.00 453.00 454.05 449.00 459.60 447.05 439.55
963,400 727,500 1,058,400 2,584,800 3,651,000 1,226,900 1,087,900 2,098,000 833,800 1,074,600
452.50 456.00 460.40 459.00 453.00 454.05 449.00 459.60 447.05 439.55
126
3-May-10
443.00
453.70
437.50
452.95
1,158,400
452.95
Close
465 460 455 450 445 440 435 430 Close
425
TATA STEEL
PRICES Date Open High Low Close Volume Adj Close*
535.80 10,980,200 547.00 8,098,700 576.40 5,536,400 583.70 6,387,900 579.50 9,110,700
127
605.65 7,652,000 558.70 7,095,900 576.40 8,053,500 577.00 11,731,400 572.90 8,712,100 608.00 5,477,200
Close
620 600 580 560 540 520 500 480 10-May-10 11-May-10 12-May-10 13-May-10 14-May-10 15-May-10 16-May-10 17-May-10
Close
ICICI
PRICES Date Open High Low Close Volume Adj Close*
9-May-10
3-May-10
4-May-10
5-May-10
6-May-10
7-May-10
8-May-10
128
960 940 920 900 880 860 840 3-May-10 4-May-10 5-May-10 6-May-10 7-May-10 8-May-10 9-May-10 10-May-10
Close
11-May-10
12-May-10
13-May-10
14-May-10
15-May-10
16-May-10
ITC
PRICES Date Open High Low Close Volume Adj Close*
17-May-10
Close
129
Close
270 268 266 264 262 260 258 256 254 3-May-10 4-May-10 5-May-10 6-May-10 7-May-10 8-May-10 9-May-10 10-May-10 11-May-10 12-May-10 13-May-10 14-May-10 15-May-10 16-May-10 17-May-10 18-May-10
Close
ONGC
3rd may 2010
The Cabinet hiked price of gas sold to power, fertilizer and city gas projects from Rs 3,200 per thousand cubic meters (USD 1.79 per million British
130
thermal unit) to Rs 6,818 per thousand cubic meters (USD 3.818 per mmBtu), Information and Broadcasting Minister Ambika Soni said.
8th may
Fertilizer prices will not be increases as the government subsidises the sector. But today's decision would result in rise in fertiliser subsidy by Rs 3,500 crore
14th may
The new gas price on an overall basis would result in 2.75 per cent increase in power tariff and up to 20 per cent hike in price of compressed natural gas (CNG) sold to automobiles in cities like Delhi
18th may
ONGC and OIL have been making substantial losses in their gas business. The (current) low prices of gas have discouraged national oil companies from making investment (in raising dwindling output
17-May-10 14-May-10 13-May-10 12-May-10 11-May-10 10-May-10 7-May-10 6-May-10 5-May-10 4-May-10 3-May-10
1,030.30 1,045.90 1,030.25 1,034.80 1,049.60 1,054.00 1,025.15 1,030.00 1,035.10 1,048.25 1,050.00
1,039.00 1,055.50 1,051.55 1,035.90 1,049.60 1,054.60 1,061.60 1,049.50 1,043.65 1,057.50 1,058.70
1,020.00 1,040.00 1,028.00 1,022.80 1,020.80 1,036.00 1,025.15 1,021.10 1,019.00 1,039.60 1,043.75
1,027.00 1,043.00 1,044.40 1,028.00 1,032.50 1,053.00 1,040.00 1,043.00 1,027.70 1,042.00 1,050.30
542,300 852,900 1,250,000 797,100 1,022,300 624,300 1,138,400 786,100 447,700 376,900 540,500
1,027.00 1,043.00 1,044.40 1,028.00 1,032.50 1,053.00 1,040.00 1,043.00 1,027.70 1,042.00 1,050.30
131
Close
1,060.00 1,050.00 1,040.00 1,030.00 1,020.00 1,010.00 Close
HDIL
PRICES Date Open High Low Close Volume Adj Close*
18-May-10 17-May-10 14-May-10 13-May-10 12-May-10 11-May-10 10-May-10 7-May-10 6-May-10 5-May-10 4-May-10 3-May-10
246.85 249.90 255.85 252.00 247.95 259.00 242.00 249.75 248.00 248.50 264.00 272.00
248.10 249.90 258.60 260.00 253.90 259.00 258.50 249.75 255.00 253.55 265.70 272.00
239.30 242.20 251.40 251.95 244.35 245.25 240.75 234.10 245.00 240.30 250.35 260.60
241.60 245.95 251.65 255.35 249.20 245.55 257.75 238.30 249.85 252.80 250.65 262.35
6,330,900 4,017,800 6,208,500 7,160,800 6,079,800 6,433,500 6,420,900 6,326,200 8,997,200 7,893,400 5,761,600 5,333,400
241.60 245.95 251.65 255.35 249.20 245.55 257.75 238.30 249.85 252.80 250.65 262.35
132
Close
265 260 255 250 245 240 235 230 225
Close
9-May-10
3-May-10
4-May-10
5-May-10
6-May-10
7-May-10
8-May-10
14-May-10
10-May-10
11-May-10
12-May-10
13-May-10
15-May-10
16-May-10
17-May-10
Ambuja cement
3rd may Ambuja Cements reported increase 15.85% in cement production at 1.90 million tons in the month of May 2010 as compared to 1.64 million tons for the same month last year. 6th may Cement despatches increased by 14.11% during the month of May 2010 to stand at 1.86 million tons compared with 1.63 million tons in May 2009.
8th may Production during January - May stood at 9.15 million tons, up from 8.25 million tons in the corresponding period last year, while despatches amounted to 9.11 million tons, compared with 8.27 million tons in January- May 2009. 16 may Shares of the company declined Rs 1.8, or 1.65%, to settle at Rs 107. The total volume of shares traded was 123,822 at the BSE (Tuesday).
133
18-May-10
18-May-10 17-May-10 14-May-10 13-May-10 12-May-10 11-May-10 10-May-10 7-May-10 6-May-10 5-May-10 4-May-10 3-May-10
104.25 104.00 109.00 110.00 109.90 114.75 111.25 110.50 115.80 113.50 123.00 118.30
108.70 105.90 110.45 110.85 111.95 114.95 115.85 112.75 116.85 116.90 123.00 121.30
104.10 102.05 104.55 107.20 108.60 110.70 111.25 103.80 110.40 112.55 115.25 118.30
107.75 105.05 105.45 110.50 109.60 110.90 114.50 111.40 111.40 115.95 115.90 120.55
2,415,100 2,061,100 1,766,000 2,287,400 1,523,400 1,447,700 2,211,700 7,043,900 3,460,000 1,447,700 6,992,200 2,831,900
107.75 105.05 105.45 110.50 109.60 110.90 114.50 111.40 111.40 115.95 115.90 120.55
Close
125 120 115 110 105 100 95
Close
9-May-10
3-May-10
4-May-10
5-May-10
6-May-10
7-May-10
8-May-10
10-May-10
11-May-10
12-May-10
13-May-10
14-May-10
15-May-10
16-May-10
17-May-10
Hcl
3rd may, 2010
134
18-May-10
HCL Technologies acquired the UK-based systems application integrator, Axon Global, in what was the largest ever buy by an India-based service provider.
6 th may Hidden Giant: HCL
Lindsey Chester met with Rajiv Swarup, Corporate Vice President, in HCLs office on Symphony Lake in Regency Park
7th may
Going social in India: The rise of Web 2.0 in the developing world HCL CEO Vineet Nayar says social media can come in many different forms
10th may, 2010
HCL AXON Launches iControl, a Utility Web Enablement Solution for Customer Billing and AMI
15th may, 2010
135
Close
410 405 400 395 390 385 380 375 3-May-10 4-May-10 5-May-10 6-May-10 7-May-10 8-May-10 9-May-10 10-May-10 11-May-10 12-May-10 13-May-10 14-May-10 15-May-10 16-May-10 17-May-10 18-May-10
Close
18-May-10 17-May-10 14-May-10 13-May-10 12-May-10 11-May-10 10-May-10 7-May-10 6-May-10 5-May-10 4-May-10
1,241.30 1,250.00 1,269.00 1,275.00 1,270.00 1,300.00 1,291.20 1,261.00 1,284.00 1,247.70 1,288.00
1,252.45 1,254.80 1,281.00 1,285.60 1,286.80 1,300.00 1,299.90 1,288.00 1,289.00 1,290.00 1,297.45
1,236.00 1,237.05 1,246.90 1,270.35 1,262.00 1,265.00 1,276.70 1,250.00 1,265.25 1,233.80 1,257.50
1,242.00 1,239.00 1,248.25 1,271.85 1,265.30 1,267.00 1,291.90 1,283.00 1,286.00 1,287.30 1,258.00
462,400 322,900 443,300 662,600 589,700 395,000 563,900 488,300 394,500 550,700 457,000
1,242.00 1,239.00 1,248.25 1,271.85 1,265.30 1,267.00 1,291.90 1,283.00 1,286.00 1,287.30 1,258.00
136
3-May-10
1,275.00
1,294.25
1,263.35
1,282.50
599,800
1,282.50
Close
1,300.00
1,280.00 1,260.00 1,240.00 1,220.00 1,200.00 3-May-10 4-May-10 5-May-10 6-May-10 7-May-10 8-May-10 9-May-10 10-May-10 11-May-10 12-May-10 13-May-10 14-May-10 15-May-10 16-May-10 17-May-10 18-May-10
Close
18-May-10 17-May-10 14-May-10 13-May-10 12-May-10 11-May-10 10-May-10 7-May-10 6-May-10 5-May-10 4-May-10 3-May-10
10.44 11.00 11.21 11.34 11.68 11.43 11.26 11.16 11.58 11.65 12.00 12.10
10.85 11.00 11.21 11.42 11.68 11.73 11.72 11.32 11.59 11.82 12.00 12.29
10.38 10.55 10.83 11.20 11.41 11.43 11.25 11.00 11.01 11.12 11.50 12.01
10.65 10.72 10.96 11.23 11.49 11.54 11.66 11.21 11.16 11.51 11.71 12.14
76,300 114,300 39,800 45,600 44,700 74,500 85,000 91,100 80,800 81,400 110,500 23,900
10.65 10.72 10.96 11.23 11.49 11.54 11.66 11.21 11.16 11.51 11.71 12.14
137
3rd may
Tata Communications and Rendezvous Hospitality Group Open Singapores First Public Room Telepresence Facility
5th may, 2010
Tata Communications and Rendezvous Hospitality Group Open Singapore's First Public Room Telepresence Facility
May 7, 2010
Nimbus Communications Cricketnirvana.com to stream live cricket matches using Tata Communications CDN platform
May 14, 2010
Tata Communications partners with Infinity Africa to expand its global network and service offering into Tanzania
may 15, 2010
138
Close
12.5 12 11.5 11 10.5 10 9.5 Close
CONCLUSION
1. It appears that prices of individual stocks overreact to information and then correct themselves. 2. FIIS and FDIS are the major players of the current Indian stock market. 3. Government policies and reports affect the stock market. 4. Competitors effect means if one suffers loss, then its competitors securities prices increases. 5. Interdependence effect means if one industry suffers and another industry depend upon it then its securities prices also show that type of volatility. 6. Volatile effect of world indices and other stock exchanges. 7. From time to time all three levels of market efficiency reflect in the NSE STOCK EXCHANGES. 8. ALMOST 95% both the major stock exchanges NSE and BSE moves in the same direction. 9. Almost 75% times investors react according to the prediction of leading news channels like CNBC, ET NOW, ZEE BUSINESS.
139
10. Most of the companies release relevant information according to their security prices.
BIBLIOGRAPHY
Books Referred:
C R Kothari, Research Methodology,1st edition, New Age International
Publishers, ISBN: 978-81-224-1522-3 M. Y. Khan Financial Services Prasanna Chandra Security Analysis & Portfolio Management: A Review, Finance India, Vol. II No. 1, March 1989.
Websites:
www.reliancemoney.com
140