Mallu MBA: PG Department of Business Administration, BELAGAVI

MALLU MBA
PG Department of Business Administration, BELAGAVI
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EXECUTIVE SUMMARY
Reliance money is a part of the reliance Anil Dhirubhai Ambani Group and is promoted by Reliance capital, the fastest growing private sector financial services company in India, ranked amongst the top 3 private sector financial companies in terms of net worth. Through reliance money, you can invest in a wide range of asset classes from Equity, Equity and commodity Derivatives, Mutual Funds, insurance products, IPOs to availing services of Money Transfer & Money changing. The present financial environment provides opportunities of investment to the Investors. The decision to invest in right instrument is too complex which can meet their expectations perfectly. So a study has been done which explain about the preference level of respondents towards various financial products and the various factors which affect investors risk taking capability. By investing early you allow your investments more time to grow. The three golden rules for all investors are: Invest early Invest regularly Invest for long term and not short term This project has been a great learning experience for me at the same time it gave me enough scope to implement my analytical ability. All the topics have been covered in a very systematic way. The language has been kept simple so that even a layman could understand. The study has been concluded by analysis of various fundamental, dependent and independent variables are must be needed to select the investors stock.
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1. INDUSTRY PROFILE
This project pertains broadly to the financial service sector. In today's corporate and competitive world financial sector has the maximum growth and potential as compared to other sectors. Financial products have the maximum growth rate of 7080%while FMCG has maximum 12-15% of growth rate. In last few years, India has emerged as the one of the most rapidly growing economies in the world. India has been categorized with nations like Brazil, Russia and China (BRIC Nations) who are going to be the prime drivers of world economy in next few decades. Since the time, India first opened its gates to foreign investment (FDI & FII), there has been a complete turnaround. Now the traditional Hindu rate of growth is a thing of past and clocking 8%-9% GDP growth rate is the common norm. India along with other Asian powerhouse China makes for the fastest growing nations in the entire world. Even in the case of ongoing global recession, India has managed to perform far better than other nations.' Right from banking system to financial regularities, the country has thrived on discipline and out-performance. The booming Indian economy resulted in widespread growth and arrival of new industries. All these resulted in a most sparkling phenomenon in the form of financial market renovation of India. Financial services in India has' taken a giant leap from the days of standing in banks queue for several hours for opening a saving account or trying to get some fixed deposits (FD) done. The financial services have increased manifold and now people have the choice to choose the one that most suitably fits the bill. There are several services like broking firms, investment services, financial consulting, evergreen national banks, numerous private banks, mutual funds, car and home loans, equity market and other banking services. Services are many and offered by blue chip names of the industry.
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Most of the companies in financial segment offer consultancy services and all the services of wide financial gamut.
2. COMPANY PROFILE
Reliance Money, a Reliance Capital company, is part of the Reliance Anil Dhirubhai Ambani Group. It is a comprehensive financial services and solution provider providing customers with access to Equity Equity and Commodity Derivatives Portfolio Management Services Mutual Funds IPOs Life and General Insurance and Gold Coins Customers can also avail Loans, Credit Card, Money Transfer and Money Changing services.
Inception of Reliance Money

Reliance Money started operations in April 2007. The company is adding about 2,000 to 2,500 customers every day. It currently has about 1.65 lakh customers and the traded volumes have crossed about Rs 1,200 crore It has tied up with Chicago-based Alaron Trading Corporation, a global, full-service commodity futures brokerage firm. !'Expanding our global presence, especially with a company of the stature of Reliance Money, allows Alaron to seamlessly embrace the rapid expansion in the futures market," Scott Slutsky,. Managing Director of Alaron Trading, told news agencies. Alaron's trading platforms offer direct access to virtually every electronic and pit-traded contract in the world. Reliance Money will facilitate the trading process through its 88 branches and 2,200 outlets in India."Through this important window provided by Alaron, our customers in India will be in a position to readily trade international commodity futures in a cost effective, convenient, and secured manner," said Sudip Bandopadhyay, Director of Reliance Money.
PG Department of Business Administration, BELAGAVI Page 4
The Reliance - Anil Dhirubhai Ambani Group is among India's top three private sector business houses on all major financial parameters, with a market capitalization of Rs.325,000 crores (US$ 8 billion), net assets in excess of Rs.115,OOO crores (US$ 29 billion), and net worth to the tune of Rs.55,000 crores (US$ 14 billion). Across different companies, the group has a customer base of over 100 million, the largest in India, and a shareholder base of over 12 million, among the largest in the world. Through its products and services, the Reliance - ADA Group touches the life of 1 in 10 Indians every single day. It has a business presence that extends to over 20000 towns and 4.5 lakhs villages in India, and 5 continents across the world.
Nature of the business carried Reliance money is carrying business such as it is giving a service of online trading with less brokerage Charge, and it also having financial products such as Life Insurance . General insurance giving investment facility in Equity, mutual fund, PMS, and also it is carrying a Money transfer and money exchange, and also dealing with gold coins.
Vision Mission and Quality Policy Vision The vision of Reliance Money is 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 The mission of the company 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. Quality policy Talented, efficient and competent team of youngsters rolling out high profile applications for the global business community, keeping in mind true quality, total customer satisfaction, delivering on time, right time, every time.
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Creatively involved in providing high quality products and services through: Responsiveness to customer needs. Provision of work satisfaction and promising careers. . Constant measurement and monitoring of all operations. Continuous improvements of procedures, products, and services; and Performance of operations in a responsible manner.
Product and service profile 'Reliance Money provides a comprehensive platform, offering an investment avenue for a wide range of asset classes. Its Endeavour is to change the way India transacts in financial markets and avails financial services. Reliance Money currently offers its services in Broking and Distribution of Financial Services and Products. Equity Separate Dealing Room for HNI, Institutional & Corporate Clients at the branch office in Belgaum, managed by expert dealers Relationship Manager assigned for each large relationships. Tools that help plan investments, tax, retirement, etc. Risk profile analyzer Asset allocators to build an appropriate investment portfolio..
Equity and Commodity Derivative Trading and Clearing membership of BSE, NSE, MCX and NCDEX providing broking services in Equity, Equity & Commodity Derivatives Option of on-line as well as off-line trading Trading is completely secure with 3 levels of security i.e. User ill, Password and Security Token, which is available only with Reliance Money Portfolio Management Services (PMS) Investors get regular statements and updates on the investments Investors get access to Relationship Managers Financial Advisors through whom they dill interact with Fund Managers to discuss their portfolio
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Wealth Management Services End to end Wealth Management Services. Assessing financial health and risk profiling of the client. Tax Advisory includes buying, selling, renting and valuation of properties. Mutual Funds Distribution of equity and debt products from leading AMCs including structured products such as Portfolio Management Services. Financial Planning Through SIPs. Systematic Investment Plans (SIPs) SIP is a method to increase exposure to equities gradually over a long period of time say over 5-10 years by investing in equity funds by using the concept of rupee cost of averaging. Disciplined investing in equity funds over longer time frames coupled with power of compounding helps generate superior returns. SIP provides better downside protection as the amount invested each month is very small compared to the overall investment.
IPO IPO Distribution: Reliance Money distributes all IPOs (Book Building as well as Fixed Priced) pan India through its distribution channel (Online + Offline) and helps get IPO Investment benefits by providing end to end assistance Life and General Insurance Life Insurance Reliance Money provides Life Insurance that helps provide financial assurance and securities for your dependents and loved ones. Life Insurance products offer comprehensive financial solutions which besides offering financial security also provide opportunity for saving, investment and tax planning.. General Insurance Reliance Money extends various General Insurance products with an exhaustive range of insurance policies that covers most risk including Motor, Health, property, Marine, Casualty, Credit and Liability
Pure Gold Coin Gramm age: 0.5 gram, 1 gram, 5 gram and 8 gram, Pure Gold Swiss Coins Purity: 24 carat, 99.99% pure Fineness: 999.9 (Highest purity that can be achieved in Gold) Packaging: Available in a see through, tamper-proof packaging with a certificate of purity from Swiss Assayer Availability: All India, across all Reliance Money and Reliance World outlets
Area of operation:
Reliance Money offers the services not only in Belgaum but also all over India. Money is one of the leading brokerage and distributors of financial products in India. Operation in India As on March 31, 2011 Reliance Money had a distribution network of 10,350 outlets across 5,165 locations in India. The Reliance Money had few overseas branches which includes Hong Kong, Malaysia, Muscat and Nigeria
Ownership pattern Reliance Capital is one of India's leading and fastest growing private sector financial services companies, and ranks among the top 3 in terms of net worth. Reliance Money, a Reliance Capital company, is part of the Reliance Anil Dhirubhai Ambani Group. It is a comprehensive financial services and solution provider providing customers with access to Equity, Equity and Commodity Derivatives, Portfolio Management Services, Mutual Funds, IPOs, Life and General Insurance and Gold Coins. Customers can also avail Loans, Credit Card, Money Transfer and Money Changing services. The largest braking house in India with over 2.5 million customers and a wide network of over 10,000 outlets and 20,000 touch points in5,000+ locations. The average daily volume on the stock exchanges is Rs. 2,000 Crores, representing approximately 3% of the total stock exchange volume. The Reliance - Anil Dhirubhai Ambani Group has a market capitalization of Rs.325, 000 crores (US$ 81 billion), net assets in excess of Rs.115,OOO Crores (US$ 29 billion), and net worth to the tune of Rs.55,000 Crores (US$ 14 billion). Across different companies, the group has a
customer base of over 100 million, the largest in India, and a shareholder base of over 12 million, among the largest in the world. It has a business presence that extends to over 20000 towns and 4.5lakhs villages in India and 5 continents across the world. Competitors information Reliance Money is facing a stiff competition from following brokers in Belgaum city ICICI Direct, Share Khan, India Bulls HDFC Securities, RELIGARE,KOTAK Securities Infrastructural facility The Reliance Securities ltd is located in Belgaum- congress road. The company has rented property: Total Area rented by the company is located Built in Area of the company : 2,000 square feet. : 2,000 square feet.
All the members of the company employees are good in communication. Also good information air technology support is available. Cleanliness is given utmost importance in the company. There are air- conditioners, proper lighting and ventilation and Tele communication facilities. The Reliance money company also provides Travel allowances, and Medical allowance facilities to the employees and parking facility is also available.
NETWORK The local area networks are deployed using Cat6 cables for data and Cat6 cables for voice with the fancily to create segregated virtual user and corporate LANS. More recently Reliance money has also started migrating to the MPLS network to connect with their branches and provide world class infrastructure at each of our location.
Key Achievements. Reliance Money Belgaum Branch has got best performance branch in making Demat account and also in trading in zonal level in the year 2008-09. Best performing business for the year 2010-11&also highest revenue generator for commodity business in the year 2010-11.
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2.10 Work Flow Model.
Reliance money
Bank interface
Surveillance.
Administrative Server.
BSE/ NSE Terminal.
D P Interface.
Future .Growth & prospects The growth of financial sector in India at present is nearly 8.5% per year. The rise in the growth rate suggests the growth of the economy. The financial policies and the', monetary policies are able to sustain a stable growth rate. The reforms pertaining to the monetary policies and the macroeconomic policies over the last few years have influenced the Indian economy to the core.
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The major step towards opening up of the financial market further was the nullification of the regulations restricting the growth of the financial sector in India. To maintain such a growth for along term the inflation has to come down further. The financial sector in India had an overall Growth of 15%,which has exhibited stability over the last few years, although several other markets across the Asian region were going through turmoil. The development of the system pertaining to the financial sector was the key to the growth of the same. With the opening of the financial market variety of products and services were introduced to suit the need of the customer. The Reserve Bank of India (RBI) played a dynamic role in the growth of the financial sector of India.
Future prospect of Reliance Money Reliance Money, the financial services arm of Reliance Capital Ltd, plans to launch portfolio management services (PMS), where managers will create a basket of stocks for each client, based on individual needs, for amounts as low as Rs5 lakhs. Such services are popular in India but, almost all the offerings of large finance companies target high net worth individuals (HNIs) with the ability to invest Rs l Crore and above Reliance Money, which helps clients invest in equities, derivatives and commodities, will typically offer such services for amounts between Rs5 lakhs and Rs75 lakhs; Rs5 lakhs is the smallest amount the industry's regulator mandates for PMS. Reliance Money will launch its PMS ion December and will especially target executives and professionals in metros and smaller towns.
MC-KINSEY'S 7S FRAME WORK The 7-S model is better known as Mc-Kinsey 7-S. The Mc-Kinsey 7-S model is widely discussed framework for viewing the inter relationship of strategy formulation and implementation. It helps to focus manager attention on the importance of linking the chosen strategy to a variety of activities that can affect the implementation of strategy. Developed in the early 1980s by Tom Peters and Robert Waterman, two consultants working at the McKinsey & Company consulting firm, the basic premise of the model is that there are seven internal
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aspects of an organization that need to be aligned if it is to be successful
Hard and soft elements The 7-S elements are distinguished in so called hard S's and soft S's. The four softS like Style, skill, staff and shared values are hardly feasible.
Hard and soft elements of MC KINSEYS 7s model
Hard elements "Hard" elements are easier to define or identify and management can directly influence them. These are strategy statements, organization charts and reporting lines and formal processes and IT systems. The hard elements like structure, system and strategy are feasible and easy to identify. Soft elements Soft elements, on the other hand, can be more difficult to describe, and are less tangible and more
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influenced by culture. However, these soft elements are as important as the hard elements if the organization is going to be successful. The way the model is presented in below depicts the interdependency of the elements and indicates how a change in one affects all the others Mc Kinneys 7-s framework with reference to company profile
7S model can be better understood by analyzing the following questions. STRATEGY: What are our objectives? How do we intend to achieve our objectives? How do we deal with competitive pressure?
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How are changes in customer demands dealt with? How is strategy adjusted for environmental issues? STRUCTURE: How is the company/team divided? What is the hierarchy? How do the various departments coordinate activities? How do the team members organize and align themselves? Is decision making and controlling centralized or decentralized? Is this as it should be given what we're doing? Where are the lines of communication? Explicit and implicit?
SYSTEM:
What are the main systems that run the organization? Consider financial and HR Systems as well as communications and document storage. Where are the controls and how are they monitored and evaluated? What internal rules and processes does the team use to keep on track? SHARE VALUES: What are the core values? What is the corporate/team culture? How strong are the values? What are the fundamental values that the company/team was built on? STYLE: How participative is the management/leadership style? How effective is that leadership? Do employees/team members tend to be competitive or cooperative? Are there real teams functioning within the organization or are they just nominal groups?
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STAFF: What positions or specializations are represented within the team? What positions need to b
Are there gaps in required competencies? SKILLS: What are the strongest skills represented within the company/team? Are there any skills gaps? What is the company/team known for doing well? Do the current employees/team members have the ability to do the job? How skills are monitored and assessed? Now 7S can be understood pertaining to Reliance Money
Strategy: Strategy is the planning devise to maintain and build competitive advantage over the competition. The main strategies made by Reliance money The main strategy is to maintain the consistency in quality and provide good quality services to their clients. To attain global best practices and become world class financial services To Enterprise- guided by sophistication and maturity. To adapt new technologies fast. Reliance Money has 4 departments IN BELGAUM BRANCH and the details of the same are as following Marketing, HR, Operations, Administration department its purpose to move towards greater degree of
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Administration Department Administrators are basically facilitators of the company. They take care of all the facilitating activities of all the departments. They help in coordinating different activities in an organization from selecting the location of the outlet to providing necessary infrastructure and maintaining the same. Main Activities of Administration Department: Selecting the location. Providing with the required infrastructures like computers, furniture, fittings &fixtures, air conditioners etc. Providing the storage facility. Looking after Marketing, Branding, and Legal, Sales and Distribution, payment of salaries and other payments required for the functioning of day to day activities Sales and Distribution Department In Reliance Money sales and distribution department plays an important role in the following way Collecting the leads from the website, kiosks and trainees. Contacting the clients through direct contact or mails. Explaining the features of the products. Explain about the essential documents. Facilitate the customers with a Demo. Marketing Department Marketing is the delivery of customer satisfaction at a profit. Marketing, any other business function deals with customer. Creating customer value and satisfaction are the heart of the modem marketing. Therefore two fold goal marketing is to attract new customers by promising superiors value and to keep current customers by delivering satisfaction. In Reliance Money marketing highlights on
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Understanding consumer needs and wants. Value satisfaction and quality. Products and services. Exchange, transfer and relationship. Human Resource Department HR Functions in Reliance Money: Talent acquisition Talent development Talent management Operation Department The role of operation department is to carry out the policies and underwriting works. The other functions include performing the day to day activities as well as smooth functioning of enterprise business. Following are the important functions of the operations department of Reliance Money Issuing the policies. Verification of the documents. Settling down the claims. Charges deduction. Dispatching the policy documents. Settling the customer's problems. Making records related with the customers. Follow up. Finance Department Responsibilities of Finance Department in Reliance Money are: To provide account and complete systematic information of financial activities To maintain all the books of account and other financial documents Skills It means the actual skills and competencies of the employees working for the company and the company itself.
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Style In Reliance Money the leadership is not much effective as the groups are not performing as real team. In the team also they have competition which affects the team culture.
Systems The systems consist of formal and informal procedures, including innovation systems, compensation systems. The systems also include data collection, storage and utilization for record and appraisal purposes. (Management information systems i.e. reports of various departments, financial information system i.e. marketing and sales information, employee information system. Staff The staff of Reliance Money is divided into national head, regional head, zonal head cluster head and centre manager, and minimum education for the managers is master degree in MBA and work experience. Reliance money adopts various training facilities to, Upgrade the skills of the employees Enable the employees to contribute towards organizational objectives. Facilitating a self learning The company has developed skills and expertise in sales and marketing of Demat, insurance, and other products
Shared values Shared values also refer to the values and beliefs of the company. The value helps the members in the organization to achieve effective goals. The Reliance Money is committed to abide to the following values and responsibilities: Be a lean, responsive and learning organization. Continuously improve to achieve world-class standards and total customer satisfaction. Maintain cost effective service to the customer. Ensure a common culture and a common set of values throughout the organization Recognize individuals' contributions. Develop stronger leadership skills, greater teamwork and a global perspective.
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SWOT ANALYSIS reliance money Belgaum branch SWOT analysis means analysis of the internal strengths and weakness of the Reliance money and also analysis of external opportunities and threats of the company.
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Strength On line share trading. Flexible organization Low brokerage services High speed trading Brand name of the Company. No hidden charges. Customer education center Convenient & Safe Single - Window Access Cost effective Value-Added services
Weaknesses No Service in Rural Segment. Clients are still comfortable with traditional way of trading. For the intraday system automatically sell the shares at 2.55pm
Opportunities More Potential Market. Awareness through Media. Foreign Direct Investments & Foreign Institutional Investors in Indian markets.
Threats Market fluctuations Government polices and war atmosphere from neighboring countries.
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Competition from banks and insurance sectors. Indian market is still in the infant stages in online trading. Internet is not available in major part of the nation.
ANALYSIS OF FINANCIAL STATEMENT
Key Financial Ratios of Reliance Capital
------------------- in Rs. Cr. ------------------Mar '07 Investment Valuation Ratios Face Value Dividend Per Share Operating Profit Per Share (Rs) Net Operating Profit Per Share (Rs) Free Reserves Per Share (Rs) Bonus in Equity Capital Profitability Ratios Operating Profit Margin(%) Profit Before Interest And Tax Margin(%) Gross Profit Margin(%) Cash Profit Margin(%) Adjusted Cash Margin(%) Net Profit Margin(%) Adjusted Net Profit Margin(%) Return On Capital Employed(%) 95.11 91.19 91.53 86.17 86.17 82.78 82.78 13.86 88.80 87.13 87.99 74.22 74.22 73.24 73.24 11.84 80.65 79.34 79.83 54.11 54.11 49.30 49.30 10.83 79.74 77.95 79.02 34.83 34.83 32.48 32.48 11.48 72.59 71.63 71.82 14.52 14.52 14.30 14.30 9.02 10.00 3.20 27.61 29.03 159.10 -10.00 3.50 31.58 35.56 182.47 -10.00 5.50 67.87 84.15 209.29 -10.00 6.50 95.45 119.69 228.78 -10.00 6.50 69.94 96.35 233.68 -Mar '11
Mar '08
Mar '09 Mar '10
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Return On Net Worth(%) Adjusted Return on Net Worth(%) Return on Assets Excluding Revaluations Return on Assets Including Revaluations Return on Long Term Funds(%) Liquidity And Solvency Ratios Current Ratio Quick Ratio Debt Equity Ratio Long Term Debt Equity Ratio Debt Coverage Ratios Interest Cover Total Debt to Owners Fund Financial Charges Coverage Ratio Financial Charges Coverage Ratio Post Tax Management Efficiency Ratios Inventory Turnover Ratio Debtors Turnover Ratio Investments Turnover Ratio Fixed Assets Turnover Ratio Total Assets Turnover Ratio Asset Turnover Ratio Average Raw Material Holding Average Finished Goods Held Number of Days In Working Capital
13.19 13.16 12.03 12.03 14.02
12.51 12.54 210.12 210.12 11.84
17.01 18.39 245.29 245.29 10.83
14.45 15.18 272.66 272.66 15.37
4.92 4.74 280.32 280.32 9.85
11.60 11.57 0.04 0.04
19.36 19.34 0.27 0.27
10.18 10.14 1.55 1.55
1.57 26.31 2.02 1.26
2.48 7.43 1.72 1.49
13.15 0.04 13.67 13.41
18.24 0.27 18.40 16.32
4.07 1.55 4.11 3.55
1.91 2.02 1.93 1.80
1.35 1.72 1.34 1.28
-28.50 --0.15 1.72 --1,044.8
-5.88 1,081.71 -0.13 2.95 --1,660.58
-9.41 --0.13 6.39 ---
-22.05 ---8.79 ---
-23.35 ---12.54 ---
1,831.07 1,412.84 1,216.9
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8 Profit & Loss Account Ratios Material Cost Composition Imported Composition of Raw Materials Consumed Selling Distribution Cost Composition Expenses as Composition of Total Sales Cash Flow Indicator Ratios Dividend Payout Ratio Net Profit Dividend Payout Ratio Cash Profit Earning Retention Ratio Cash Earning Retention Ratio AdjustedCash Flow Times 15.12 14.50 84.84 85.47 0.30 15.56 15.39 84.48 84.64 2.14 15.41 15.15 85.75 85.96 8.29 19.29 18.88 81.63 82.01 13.27 ----------1.11 ---2.14 --
--5.06 --
55.03 52.24 42.80 45.81 34.69
Mar '06 Earnings Per Share Book Value 24.12 182.75
Mar '07
Mar '08 Mar '09
Mar '10 13.82 283.31
26.31 210.12
41.75 245.29
39.41 277.10
Learning Experience
It was great working experience with Reliance money Belgaum. The company is well situated and it follows the policies and procedure every day. I got to know the function and various responsibilities of manager in the organization.
The company works from 9.00 AM to 3.30 pm every day expect Sunday, which the states the good time management. I learnt the trading system and process of buying and selling of securities (both inter day and intraday). I understood the application of theoretical concept in to decision making in the organization.
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PART-B
General introduction
Internet trading (e- trading): The stock exchange board of India have allowed e-trading and brokers would rush to the web sites and trading through web sites would increase. On the internet, one would be able to trade instantly and transparently from any part of the world. Trade is confirmed via the internet in no time and by this method, the investor comes to know immediately the trade member, time, rate at which the trade took place. There will also be quicker settlements and collections. Electronic fund collection: Under this system, the brokers get their funds directly credited to their accounts and the clients can in turn get their accounts credited or debited for the net funds to flow across the country. This facilities quicker payments, improves the liquidity position of brokers and get funds one day after the payout day to abviate possible defaults or cash out positions of brokers and sub brokers. Some things we should know Week Hi and Low these are the highest and lowest prices at which a stock has traded over the previous 52 weeks (one year). This typically does not include the previous days trading. Company Name & Type of Stock - This column lists the name of the company. If there are no special symbols or letters following the name, it is common stock. Different symbols imply different classes of shares. Ticker Symbol - This is the unique alphabetic name which identifies the stock.
Dividend per Share - This indicates the annual dividend payment per share. If this space is blank, the company does not currently pay out dividends.
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Dividend yield - The percentage return on the dividend, calculated as annual dividends per share divided by price per share.
Trading Volume - This figure shows the total number of shares traded for the day, listed in hundreds. To get the actual number traded, add to the end of the number listed.
Day High and Low - This indicates the price range at which the stock has traded at throughout the day. Close The close is the last trading price recorded when the market closed on the day.
Net Change - This is the dollar value change in the stock price from the previous day's closing price. When you hear about a stock being "up for the day," it means the net change was positive.
A bull market is when everything in the economy is great, people are finding jobs, GDP is growing, and stocks are rising. Picking stocks during a bull market is easier because everything is going up. Bull markets cannot last forever though, and sometimes they can lead to dangerous situations if stocks become overvalued. If a person is optimistic and believes that stocks will go up, he or she is called a "bull" and is said to have a "bullish outlook". A bear market is when the economy is bad, recession is looming and stock prices are falling. Bear markets make it tough for investors to pick profitable stocks. One solution to this is to make money when stocks are falling using a technique called short selling. Another strategy is to wait on the sidelines until you feel that the bear market is nearing its end, only starting to buy in anticipation of a bull market. If a person is pessimistic, believing that stocks are going to drop, he or she is called a "bear" and said to have a "bearish outlook". A company, which has a high intrinsic worth, is not necessarily the best stock to buy. It may have no growth prospects or it may be overprices .similarly a company that performs well during any one year may not be the best to buy .on the contrary, a company which has been
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badly performing for sometime might have turned the corner and it may be the best to buy, as its shares may be under prices and it has good prospects of growth.
INVESTMENT: Investment is the employment of the fund with aim of achieving additional growth in value. An investment is a sacrifice of current money or other resources for future benefits. It is the allocation of monetary resources to assets that are expected to yield gain or positive return over a given periods of time .it involves the commitment of resources which have saved or put away from current consumption in the hope that some benefits will accrue in future. The three key aspects of any investment are time capital gain and risk the sacrifice takes place now and is certain .the benefits are expected in the future and tend to be uncertain. Risk: investment is considered to involve limited risk and is confined to those avenues where the principle is safe. No investments are completely risk free. Capital gain: If purchase of securities is preceded by proper investigation and analysis and review to receive a stable return over a period of time it is termed as investment. Time: A longer time, fund allocation is termed as investment. The investor constantly evaluates the work of a security. There has to be a constant review of securities to find out whether it is a suitable investment. The investment is an attempt to carefully plan, evaluate and allocate funds in various investments which offer safety of principal, moderate and continuous return and long term commitment. INVESTMENT DECISION In stock market investment decision refers to making a decision regarding the buy and sell orders. As we know economic analysis or factors play in any investment decision which is made for making a gain and better returns. Economic analysis and forecasting company performance. Any investment is risky and such investment decision is difficult to make. It is based on availability of money and information on economy, industry and company. Share prices are ruled by expectation of the market and the market sentiments. As we know these decisions are influenced by availability of money and flow of information. What to buy and sell also
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depends on the fair value of shares and the extent of over valuation and under valuation. For making such a decision the common investors have to depend more upon a study of fundamental rather than technical, although technical are also important.
What is an Index? An Index shoes how a specified portfolio of share prices is moving in order to give an indication of market trends. It is a basket of securities and the average price movement of the basket of securities indicates the movement, whether upwards or downwards. Following are the some world indices: Sensex S & P CNX NIFTY Nikkei 225 Hang Sang KOSPI Dow Jones NASDAQ Title of the study: Fundamental analysis of stocks, at Reliance money Statement of the problem: The stock market tends to be volatile by being bearish and bullish which confuses investors in making investment decisions. Lack of knowledge of economics, inability to analyze financial statements and basic lack of education will make investors to take emotional,ell logical &irrational investment decisions. I have observed that, over the period of time investors tend to develop herd mentality in making investment decisions. I have made a small effort in giving different perspective to the investors for making wise investment decisions.
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Objectives of the Study: To study the performance of stocks of four different sectors i.e. IT, Cement, Banking and Petroleum Sectors To carry out fundamental analysis of selected industries in the economy. To find out companies those are preferable for investments. To give suggestions based on findings of the study.
Scope of the study: The fundamental analysis of stock starts from broad environmental factors to the industry, which influences the share price and finally analyzing the companies potentiality by considering possible risks associated with securities. This study helps the investors to understand the market as well as gives the learning foundation for fundamental analysis of strips. The whole study is carried on fundamental variables like dependent and independent variables. Correlation plays a significant decision role while selecting the particular company , as it should be positive or negative. So analyzing the companies potential growth through correlation analysis provides the valuable insights. . Research Methodology: Sample size.Four industries and in each industry three companies. Period- 3 financial years since 2008-09, 2009-10, 2010-11 Tool for analysis is Calculation of correlation coefficient of different sectors.
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To carry out this project, secondary data is also collected from various sources i.e. from 1/4/2008 to 31/03/2011 from the companies websites and the annual reports and through other websites too. The secondary data also includes the selected companys net profit, earning per share, debt equity ratio, dividend payout ratio, book value per share
The following formula has been used to calculate the correlation of independent variables of GDP, FDI, and INFLATION, FII v/s dependent variables of NP, EPS, BVPS, DER and DPR of selected companies. Correlation = [NXY - (X) (Y) / SQRT ([NX2 - (X) 2][NY2 - (Y) 2])] A measure of the strength of linear association between two variables. Correlation will always between -1.0 and +1.0. If the correlation is positive, we have a positive relationship. If it is negative, the relationship is negative.
Limitations of the study:
The project is based on three financial year data. The project had limited time period. Lastly the study is purely academic. Hence, conclusions from analysis of statements are not necessarily comment on good or bad management. This study is only restricted to fundamental analysis only.
ANALYSIS AND DESIGN

BRIEF INTRODUCTION OF SECTORS INFORMATION TECHNOLOGY SECTOR:
The Indian information technology (IT) industry has played a major role in placing India on the international map. The industry is mainly governed by IT software and facilities for instance
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System Integration, Software experiments, Custom Application Development and Maintenance (CADM), network services and IT Solutions. According to Nasscom's findings Indian IT-BPO industry expanded by 12% during the Fiscal year 2009 and attained aggregate returns of US$ 71.6 billion. Out of the derived revenue US$ 59.6 billion was solely earned by the software and services division. Moreover, the industry witnessed an increase of around US$ 7 million in FY 2008-09 i.e. US$ 47.3 billion against US$ 40.9 billion accrued in FY 2008-09 INFOSYS: Infosys Technologies Ltd is one of the biggest names in the Indian IT industry. This multinational IT services company with offices in 22 countries and development centers in India, Japan, China, Australia, UK and Canada, is headquartered in Bangalore, India. Currently (as of September 30, 2009), Infosys has 105,453 employees in its payroll. From a mere US$ 250 company in 1981, Infosys Technologies Ltd. has come up a long way to become a global leader with revenues of more than US$ 4 billion.
INFOSYS
INDEPENDENT FDI
DEPENDENT net profit
CORRELATION -0.874181351
GDP INFLATION
net profit net profit
0.089654 0.098503
FII
net profit
-0.960309184
The above table exhibits that there is a negative correlation exist between FDI, FII and NET. PROFIT hence there is inverse relationship with net profit which means that increase in FDI and FII results in decrease of NET PROFIT. The value of correlation between GDP and
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INFLATION as well as net profit is 0 it means there is no correlation between GDP, INFLATION and NET PROFIT.
INDEPENDENT FDI
DEPENDENT EPS
GDP
EPS
0.0047972
INFLATION
EPS
0.071344
FII
EPS
-0.95235
The value of correlation between GDP and EPS as well as Inflation and EPS is 0. It means there is no correlation between inflation, GDP and EPS. The above table also exhibits that there is a negative correlation exist between FDI, FII and EPS. INDEPENDENT FDI DEPENDENT Debt equity Ratio CORRELATION -0.999260081
GDP INFLATION FII
Debt equity Ratio Debt equity Ratio Debt equity Ratio
0.883452 0.34521 0.283812
The value of correlation between FDI and DER is negative hence there is a inverse correlation between FDI and DER. FII and inflation is 0 Therefore there is no correlation between FII,INFLATION and DER and the value of correlation between GDP and DER is1 it means there is a correlation between GDP and DER.
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INDEPENDENT FDI
DEPENDENT Dividend payout ratio
CORRELATION 0.869699498
GDP
Dividend payout ratio
0.865412
INFLATION
-0.90105
FII
0.419441
The value of correlation between FDI, GDP and DPR is1 it means there is a correlation between FDI, GDP and DPR.. The value of correlation between FII is 0 hence there is no correlation on both and the above table exists negative correlation between INFLATION and DPR.
INDEPENDENT FDI
DEPENDENT Book Value Per Share
GDP INFLATION
Book Value Per Share Book Value Per Share
0.675982 -0.4739
FII
Book Value Per Share
0.993694
The value of correlation between FDI, FII, GDP and BVPR is 1 it means there is a correlation between FDI, FII and BVPR, GDP, GDP. The above table exists negative correlation of INFLATION and BVPS hence there is a inverse relation. WIPRO:
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Wipro Ltd. started its journey in 1947 as a vegetable oil trading company (Western India Palm Refined Oils) in Amalner, Maharashtra, India. It was M. H. Premji, father of its current Chairman Azim Premji, who founded Wipro. After his death in 1966, his son, a Stanford University graduate in Electrical Engineering, took the onus of leadership at the age of 21. Azim Premji repositioned the company into a consumer goods company and started producing hydrogenated cooking oils, laundry soap, wax and tin containers. Later Wipro Fluid was set up, which started manufacturing hydraulic and pneumatic cylinders.
In 1977, after IBM left Indian IT sector, Wipro entered into the market. It started developing its own computers. Within a couple of years, Wipro Ltd. started selling finished products. It licensed technology from Sentinel Computers in U.S. Wipro is also the manufacturer of India's first mini computers. In 1980, Wipro Ltd. moved towards software development.
Wipro InfoTech is a part of US$ 5 billion Wipro Limited with US$ 24 billion market capitalization. Wipro is known for its quality. It is the first global software company to attain Level 5 SEI-CMM as well as the first IT Company in the world to achieve Six Sigma and Level 5 PCMM. Wipro has 13 regional offices across India. It also has offices in different places across the world including Egypt, UAE, KSA and Bahrain. Wipro
INDEPENDENT FDI
GDP INFLATION
-0.786433 0.943311
FII
net profit
0.768218446
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The value of correlation between FDI, GDP and NP is negative correlation hence there is a inverse relation between FDI, GDP and NP.INFLATION, FII and NP is 1 it means there is a correlation between INFLATION, FII and NP. INDEPENDENT FDI DEPENDENT EPS CORRELATION -0.114760419
GDP
EPS
-0.9154639
INFLATION
EPS
0.881959
FII
EPS
0.990985
The value of correlation between FDI, GDP and EPS is negative correlation hence there is a inverse relation between FDI, GDP and EPS. The value of correlation between INFLATION, FII and EPS is 1 it means there is a correlation between INFLATION, FII and EPS.
INDEPENDENT FDI
DEPENDENT Debt equity Ratio
GDP INFLATION
Debt equity Ratio Debt equity Ratio
0.7648660 0.771838
FII
Debt equity Ratio
0.203497
The value of correlation between FDI, FII and DER is 0 hence there is no correlation between them. The value of correlation between GDP, INFLATION and DER is 1 it means there is a
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correlation between GDP, INFLATION and DER. The FII and DER is 0 Hence there is no relation between them.
INDEPENDENT FDI
GDP
0.99186
INFLATION
-0.99868
FII
-0.88672
The value of correlation between FDI, GDP and DPR is 1 it means there is a correlation between FDI, GDP and DPR.GDP, The value of correlation between INFLATION, FII and DPR is negative correlation hence there is a inverse relation between them.
INDEPENDENT FDI GDP
DEPENDENT Book Value Per Share Book Value Per Share
CORRELATION 0.088542 0.079965832
INFLATION
0.777276
FII
0.947951
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The value of correlation between FDI, FII, GDP, INFLATION and is 1 it means there is a correlation between FDI, FII, GDP, INFLATION and BVPS.
HCL: HCL is a major global Technology and IT venture with annual turnover of US$ 5 billion. The HCL Enterprise incorporates two firms programmed in India, HCL Technologies and HCL Infosystems.HCL was inaugurated in 1976 and within three decades of its inception it is one of India' age start ups.
The HCL team consists of 60,000 skilled employees of various nationalities, functioning across 26 nations with 500 point of presence in India.
HCL has worldwide association with many leading Fortune 1000 companies, comprising several IT and Technology players.
HCL
INDEPENDENT FDI
GDP INFLATION
0.77432 -0.09854
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FII
net profit
0.854876214
The value of correlation between FDI, GDP, FII and NP is 1 it means there is a correlation between FDI,FII,GDP and NP.INFLATION and NP is negative hence there is an inverse correlation between them.
INDEPENDENT FDI
DEPENDENT EPS
GDP
EPS
0.86288928
INFLATION
EPS
-0.88453
FII
EPS
0.904194
The value of correlation between FDI, GDP, FII and EPS is 1 it means there is a correlation between FDI, GDP and FII and EPS. INFLATION and EPS is negative hence there is an inverse correlation between them.
INDEPENDENT FDI
GDP INFLATION
0.653782 0.66065
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FII
Debt equity Ratio
0.35020
The value of correlation between FDI,GDP, INFLATION and DPS is 1 it means there is a correlation between FDI,GDP INFLATION and DER.FII and DER is negative hence there is inverse relation between them.
INDEPENDENT FDI
GDP
0.72428
INFLATION
-0.66969
FII
-0.77606
The value of correlation between FDI, inflation, FII and DPR is negative hence there is an inverse relationship between them. The value of correlation between GDP and DPR is1it means there is a correlation between them.
INDEPENDENT FDI
GDP INFLATION
0.776543 -0.47978
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FII
0.989682
The value of correlation between FDI, GDP, FII and BVPS is 1 it means there is a correlation between FDI, GDP, FII and BVPS. INFLATION and BVPS is negative hence there is an inverse relation between INFLATION and BVPS.
PETROLIUM SECTOR: Over the years India Petroleum Industry has played an influential part in triggering the speedy expansion of the country's economy by contributing 15% in the total GDP. Further to this, petroleum exports gave new dimension to foreign exchange earnings by drawing US$ 23.64 billion in the FY 2008-09. As per the latest CII-KPMG analysis, the energy industry of India will help tin the expansion of the petroleum sector by bringing in investments worth US$ 120 billionUS$ 150 billion in the next 3-5 years. By 2012, the prospects in India Petroleum Industry are estimated to accomplish US$ 35 billion to US$ 40. IOC LTD: Indian Oil Corporation Ltd. is India's largest company by sales with a turnover of Rs. 3, 28,744 crore ($ 72,125 million) and profit of Rs. 7445 crore ($ 1,633 million) 2010-11. Indian Oil is the highest ranked Indian company in the latest Fortune Global 500 listings, ranked at the 98th position. Indian Oils vision is driven by a group of dynamic leaders who have made it a name to reckon with. for the year
IOC
INDEPENDENT
DEPENDENT
CORRELATION
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FDI
net profit
0.64258927
GDP INFLATION
0.768 0.264043
FII
net profit
-0.998784893
There is correlation between FDI, GDP and NP because FDI & GDP and NP have the 1 value. There is inverse relationship between. FII and NP because FII and NP the negative value. There is no correlation between Inflation and NP because inflation and np have the 0 value.
INDEPENDENT FDI
DEPENDENT EPS
GDP
EPS
-0.00464
INFLATION
EPS
0.555058
FII
EPS
-0.93214
There is correlation between FDI, inflation and EPS because FDI, inflation & EPS have the1 value. There is inverse relationship between GDP & FII and EPS because GDP, FII and EPS have the negative value.
INDEPENDENT FDI
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GDP INFLATION
-0.3067 -0.39219
FII
Debt equity Ratio
0.651336
There is correlation between FII and DER because FII and DER have the 1 value. There is inverse relationship between FDI, GDP, inflation and DER because FDI, GDP, DER and inflation have the negative value.
INDEPENDENT FDI
GDP
-0.25125
INFLATION
0.324203
FII
0.373877
There is no correlation between Inflation, FII, FDI & DPR because FII, DPR & FDI have 0 value. There is inverse relation between GDP & DPR because GDP, DPR have the negative value.
INDEPENDENT FDI
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GDP INFLATION
0.556432 0.011176
FII
0.973874
There is inverse relationship between FDI & BVPS because FDI and BVPS have the negative value. There is a correlation between FII, GDP & BVPS because FII and GDP, BVPS have 1 value. There is no relationship between Inflation and BVPS because inflation and BVPS has the 0 value.
HINDUSTAN PETROLIUMS: For the last 30 years and more, Hindustan Petroleum has meant different things to different people. For some it represents an abundant supply of Petrol and Diesel. For others it stands for the easy availability of LPG and lubricants. Thousands of others see in it an inexhaustible reservoir of Kerosene and other petroleum products for meeting their energy needs. For all of them HP signifies an ever- radiant source of energy. Energy that is making a big difference to millions of lives. HP is all set to unveil an exciting new phase in its growth. Diversifying into oil Exploration and Production, Power Generation, Renewable Energy ventures and much more.
Hindustan Petroleum
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INDEPENDENT FDI
GDP INFLATION
.96674 -0.35174
FII
net profit
-0.998330445
The value of correlation between FII Inflation and NP is negative hence there is a inverse relationship between FII Inflation and NP.FDI, GDP & NP have 1 value it means there is a correlation between FDI, GDP & NP INDEPENDENT FDI DEPENDENT EPS CORRELATION 0.969843053
GDP
EPS
0.003414
INFLATION
EPS
-0.35181
FII
EPS
-0.99833
The value of correlation between FDI and EPS is 1 it means there is a correlation between FDI and EPS.GDP and EPS have 0 values hence there is no relation between them. The above table also exhibits negative value of FII, INFLATION and EPS hence there is an inverse relationship between FII, INFLATION and EPS.
INDEPENDENT
DEPENDENT
CORRELATION
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FDI
Debt equity Ratio
-0.901700874
GDP INFLATION
0.806754 -0.42976
FII
Debt equity Ratio
-0.35076
The value of correlation between FII,FDI,INFLATION &DER is negative hence there is an inverse relationship between FII,FDI,INFLATION &DER.GDP&DER have 1 value it means there is correlation between GDP&DER.
INDEPENDENT FDI
GDP
-0.99696
INFLATION
0.999998
FII
-0.21439
The value of correlation between FII, GDP&DPR is negative hence there is an inverse relationship between FII, GDP&DPR. The above table also exhibits 1 value between FDI,INFLATION&DPR it means there is correlation between FDI,INFLATION&DPR.
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INDEPENDENT FDI
GDP INFLATION
0.667854 -0.64054
FII
-0.96161
The value of correlation between FII, BVPS & inflation is negative hence there is an inverse relationship between FII, BVPS & inflation. FDI, GDP&BVPS have 1 value it means there is a correlation between them. BHARAT PETROLIUM In 1860s during vast industrial development, an important player in the South Asian market was the Burma oil company ltd Though incorporated in Scotland in 1886, the company grew out of the enterprises of the Rangoon Oil Company, which had been formed in 1871 to refine crude oil produced from primitive hand dug wells in Upper Burma. In 1928, Asiatic Petroleum Company (India) started cooperation with Burma Oil Company. This alliance led to the formation of Burma-Shell Oil Storage and Distributing Company of India Limited. Burmah Shell began its operations with import and marketing of Kerosene. On 24 January 1976, the Burmah Shell was taken over by the Government of India to form Bharat Refineries Limited. On 1 August 1977, it was renamed Bharat Petroleum Corporation Limited. It was also the first refinery to process newly found indigenous crude Bombay High.
BHARAT PETROLIUM
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INDEPENDENT FDI
GDP INFLATION
0.567986 -0.13912
FII
net profit
0.692376193
There is correlation between FDI, GDPand FII & DER because FDI, GDP, FII &DER have The 1 value. There is inverse relation between inflation & DER because inflation and DER have negative value. INDEPENDENT FDI DEPENDENT EPS CORRELATION 0.889099909
GDP
EPS
0.000617
INFLATION
EPS
-0.12992
FII
EPS
0.685649
There is no correlation between GDP & EPS because GDP&EPS have the 0 value. But there is inverse relationship between inflation & EPS because inflation&EPS have the negative value. There is correlation between FDI, FII and EPS because FDI, EPS and FII have the 1 value.
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INDEPENDENT FDI GDP INFLATION
DEPENDENT Debt equity Ratio Debt equity Ratio Debt equity Ratio
CORRELATION 0.987623 0.78543 0.868823
FII
Debt equity Ratio
0.85648
There is correlation between FDI, FII, GDP, Inflation and DER because FDI, FII, GDP, Inflation &DER have the 1 value.
INDEPENDENT FDI
GDP
-0.27921
INFLATION
0.351503
FII
0.998316
There is no correlation between Inflation & DPR because they have 0 values. But here is inverse correlation between GDP & DPR because GDP&DPR have the negative value. There is correlation between FDI, FII and DPR because FDI, DPR and FII have the 1 value.
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INDEPENDENT FDI
GDP INFLATION
0.7756743 -0.6034
FII
0.955973
There is correlation between FDI, GDP and FII & DER because FDI, FDI, FII&DER have 1 value. There is inverse relation between inflation & DER because Inflation &DER have negative value.
CEMENT SECTOR: India, being the second largest cement producer in the world after China with a total capacity of 151.2 Million Tons (MT), has got huge Cement Company. With the government of India giving boost to various infrastructure projects, housing facilities and road networks, the cement industry in India is currently growing at an enviable pace. More growth in the Indian cement industry is expected in the coming years. It is also predicted that the cement production in India would rise to 236.16 MT in FY11. It's also expected to rise to 262.61 MT in FY12. The cement industry in India is dominated by around 20 companies, which account for almost 70% of the total cement production in India. In the present year, the Indian cement companies have produced 11 MT cement during April-September 2009. It took the total cement production in FY10 to11 is 231 MT.
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ACC: The Associated Cement Companies Limited, known popularly as ACC, is Indias foremost manufacturer of cement, ready mixed concrete and refractory products with a combined sales turnover of over US $ 900 million. ACC offers specialized engineering consultancy in cement and other process industries in India and abroad services ranging from geological prospecting to management and operation of plants, process engineering, productivity and optimization studies, and modernization, up gradation, expansion and technical training.
ACC
INDEPENDENT FDI
GDP INFLATION
0.667543 0.894407
FII
net profit
-0.179512215
The value of correlation between FDI, FII and NP is negative hence there is an inverse correlation between FDI, FII and NP.GDP, INFLATION and NP have 1 it means there is a correlation between GDP,NP and INFLATION.
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INDEPENDENT FDI
DEPENDENT EPS
GDP
EPS
-0.671946244
INFLATION
EPS
0.61643
FII
EPS
0.259412
The value of correlation between FDI, FII and EPS is 0 hence there is no correlation between FDI, FII and EPS.GDP and EPS. INFLATION and EPS value is 1 therefore there is a relation between INFLATION and EPS. INFLATION and EPS is 0 hence there is no correlation.
INDEPENDENT FDI
GDP INFLATION
0.779844 -0.60055
FII
Debt equity Ratio
0.6276
The value of correlation between FDI, GD, FII and DER is 1it means there is a relation between FDI,GDP,FII and DER. INFLATION and DER has negative value hence there is an inverse relation between INFLATION and DER.
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INDEPENDENT FDI
DEPENDENT Dividend Payout Ratio
GDP
Dividend Payout Ratio
0.114165
INFLATION FII
Dividend Payout Ratio Dividend Payout Ratio
-0.03898 0.953173
The value of correlation between FDI INFLATION and DPR is negative hence inverse relationship between FDI INFLATION and DPR. GDP and DPR represent 0 values hence there is no relation between GDP and DPR. INDEPENDENT FDI DEPENDENT Book Value Per Share CORRELATION -0.613588996
GDP INFLATION
0.55623 0.769081
FII
-0.97293
The value of correlation between FDI, FII and BVPS is negative inverse relationship between FDI, FII and BVPS. GDP and BVPS represent 0 values hence there is no relation between GDP and BVPS. INFLATION and BVPS represents 1 value it means there is a relation between INFLATION and BVPS.
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AMBUJA CEMENTS: A dedicated port at the Gujarat plants, two bagging terminals at Mumbai and Surat on the Western coast and five special bulk cement vessels comprise the facility. Ambuja Cement was the first to introduce the concept of bulk cement movement by sea in India.
Ambuja Cement
INDEPENDENT FDI
GDP INFLATION
-0.714580 -0.11745
FII
net profit
-0.715519568
The value of correlation between FDI, GDP, INFLATION FII and NP is negative therefore there is an inverse relation between FDI, GDP, INFLATION FII and NET PROFIT.
INDEPENDENT FDI
DEPENDENT EPS
GDP
EPS
-0.6841727
INFLATION
EPS
0.622885
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FII
EPS
0.240292
The value of correlation between GDP and EPS is negative therefore there is an inverse relation between GDP and EPS.FDI,FII and EPS represents 0 value hence there is no relation between FDI,FII and EPS.INFLATION and EPS represents 1 therefore there is correlation between INFLATION and EPS.
INDEPENDENT FDI
GDP INFLATION
0.776554 -0.99974
FII
Debt equity Ratio
0.960393
The value of correlation between INFLATION and DER is negative therefore there is an inverse relationship between INFLATION and DER. The value of correlation between FDI, GDP, FII and DER is 1 therefore there is a correlation between FDI, GDP, FII and DER. INDEPENDENT FDI DEPENDENT Dividend payout Ratio CORRELATION 0.882061169
GDP
Dividend payout Ratio
0.257801
INFLATION
-0.33061
FII
0.903978
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The value of correlation between FDI, FII and DPR is 1it means there is a correlation between FDI,FII and DPR GDP and DPR represents 0 value hence there is no correlation between GDP and DPR. INFLATION and DPR have negative value hence there is an inverse relation between INFLATION and DPR. INDEPENDENT FDI DEPENDENT Book Value Per Share CORRELATION 0.993003839
GDP INFLATION
0.667843 -0.62744
FII
0.999746
The values of correlation between INFLATION and BVPS have negative value hence there is an Inverse relationship between INFLATION and BVPS.GDP, FDI, FII and BVPS represents 1 it means there is a correlation between GDP,FDI, FII and BVPS.
INIDA CEMENTS:
The India Cements Ltd was established in 1946 and the first plant was setup at Sankarnagar in Tamilnadu in 1949. Since then it has grown in stature to seven plants spread over Tamilnadu and Andhra Pradesh. The capacities as on March 2010 have reached 14.05 mtpa.
India cement
INDEPENDENT FDI
GDP
net profit
0.78909
INFLATION
net profit
0.821114
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FII
net profit
-0.247409276
The values of correlation between FDI,FII and NP is negative hence there is an inverse relationship between FDI,FII and NP.GDP and INFLATION represents 1 value hence there is a correlation between GDP and INFLATION with NP.
INDEPENDENT FDI
DEPENDENT EPS
GDP INFLATION
EPS EPS
-0.5567832 0.773817
FII
EPS
-0.17065
The values of correlation between FDI,GDP, FII and EPS is negative have inverse relationship hence there is an inverse relationship between FDI,FII,GDP and EPS. INFLATION and EPS represents 1 it means there is a correlation between INFLATION and EPS.
INDEPENDENT FDI
GDP INFLATION
0.887345 -0.90856
FII
Debt equity Ratio
0.982917
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The values of correlation between FDI, INFLATION and DER have Negative value hence there is an inverse relationship between FDI,INFLATION and DER.The above table also exhibits GDP, FII and DER value is1it means there is a correlation between GDP, FII and DER.
INDEPENDENT FDI
GDP
0.852796
INFLATION
-0.89008
FII
-0.8984
The values of correlation between INFLATION, FII and DPR have negative value hence there is an inverse relationship between INFLATION,FII and DP .FDI,GDP and DPR which shows negative value it means there is a correlation between FDI,GDP and DPR. INDEPENDENT FDI DEPENDENT Book Value Per Share CORRELATION 0.62509509
GDP INFLATION
0.55643 -0.99982
FII
0.743642
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The values of correlation between INFLATION and BVPS have negative value it means there is inverse correlation between INFLATION and BVPS. the table also exhibits 1 value between GDP, FDI, FII and BVPS it means there is a correlation between GDP, FDI, FII and BVPS.
BANKING SECTOR:
Financial sector reforms were initiated as part of overall economic reforms in the country and wide ranging reforms covering industry, trade, taxation, external sector, banking and financial markets have been carried out since mid 1991. A decade of economic and financial sector reforms has strengthened the fundamentals of the Indian economy and transformed the operating environment for banks and financial institutions in the country. The sustained and gradual pace of reforms has helped avoid any crisis and has actually fuelled growth. As pointed out in the RBI Annual Report 2001-02, GDP growth in the 10 years after reforms i.e. 1992-93 to 2001-02 averaged 6.0% against 5.8% recorded during 1980-81 to 1989-90 in the pre-reform period. The most significant achievement of the financial sector reforms has been the marked improvement in the financial health of commercial banks in terms of capital adequacy, profitability and asset quality as also greater attention to risk management. Further, deregulation has opened up new opportunities for banks to increase revenues by diversifying into investment banking, insurance, credit cards, depository services, mortgage financing, securitization, etc. At the same time, liberalization has brought greater competition among banks, both domestic and foreign, as well as competition from mutual funds, NBFCs, post office, etc.
SBI:
The Bank is actively involved since 1973 in non-profit activity called Community Services Banking. All our branches and administrative offices throughout the country sponsor and participate in large number of welfare activities and social causes. Our business is more than banking because we touch the lives of people anywhere in many ways.
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SBI
INDEPENDENT FDI
DEPENDENT nt profit
GDP INFLATION
0.986547 0.928245
FII
net profit
-0.437005372
There is inverse correlation between FII , FDI and NP because FII,FDI have the negative value. But there is correlation between Inflation, GDP and NP are increases because Inflation,& GDP have the 1 value INDEPENDENT FDI DEPENDENT EPS CORRELATION -0.835604875
GDP
EPS
-0.89991
INFLATION
EPS
0.930495
FII
EPS
0.822415423
There is inverse correlation between GDP, FDI& EPS because these variables have the negative value. But there is correlation between Inflation, FII and EPS because FII, EPS & Inflation have the 1 value.
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INDEPENDENT FDI GDP INFLATION FII
DEPENDENT Debt equity Ratio Debt equity Ratio Debt equity Ratio Debt equity Ratio
CORRELATION 0.66879 0.765423 -897654 0.99643
There is a inverse correlation between GDP and DER because they have the negative value. There is correlation between FDI, GDP, FII and DER because these have the 1value.
INDEPENDENT FDI
GDP
0.828832
INFLATION
-0.86902
FII
0.994214
Here there is correlation between GDP; FII & DPR because these are have the 1 value There is inverse relation between FDI, inflation & DPR because they have the negative value.
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INDEPENDENT FDI
GDP INFLATION
0.02376 -0.00117
FII
0.997553
FDI, FII and BVPS there is correlation between them because FDI, FII and BVPS have the 1 value. There is no correlation between GDP & BVPS because they have 0 values. The value of correlation between Inflation and BVPS is negative hence there is an inverse correlation between Inflation and BVPS.
CORPORATION BANK: Started about 105 years ago in 1906, with an initial capital of just Rs.5000, Corporation Bank has recorded Rs. 2,00,000 Crores mark in business and even far more, with over 5000 service outlets across the nation, served by committed and dedicated 13,000 plus Corp Bankers. Proof of which is seen in its enviable track record in financial performance. They have many reasons to cheer; predominant of them is, being able to participate in nation building by empowering the rural and urban population alike. Today, they are the significant contributors to the growth of country's economy. the
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Corp Bank
INDEPENDENT FDI
GDP INFLATION
0.87654 -0.4353
FII
net profit
-0.97429697
The value of correlation between Inflation, FII and NP is negative hence there is a inverse correlation between FII, Inflation and NP and the value of correlation between GDP, FDI and NP is1 it means there is a correlation between GDP, FDI and NP.
INDEPENDENT FDI
DEPENDENT EPS
GDP
EPS
0.289728
INFLATION
EPS
-0.36175
FII
EPS
-0.43152
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The value of correlation between FII, inflation and EPS is negative hence there is a inverse correlation between FII, inflation and EPS.GDP&EPS is 0 Therefore there is no correlation between GDP and EPS and the value of correlation between FDI and EPS is 1 it means there is a correlation between FDI and EPS. INDEPENDENT FDI GDP INFLATION FII DEPENDENT Debt equity Ratio Debt equity Ratio Debt equity Ratio Debt equity Ratio CORRELATION 0.65927 0.765438 0.56789 0.67895
FDI, GDP, Inflation, FII&DER have the 1 value which means that there is correlation between FDI,GDP, Inflation ,FII&DER. INDEPENDENT FDI DEPENDENT Dividend payout ratio CORRELATION o.87544
GDP
0.787158
INFLATION
-0.83183
FII
0.612758
FDI, GDP,FII&DPR have the1 value which results that there is a correlation between FDI,GDP FII&DPR. The value of correlation between Inflation and DPR is negative hence there is an inverse correlation between Inflation and DPR.
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INDEPENDENT FDI
GDP INFLATION
0.87543 -0.65967
FII
0.944363
The value of correlation between FDI, Inflation and BVPS is negative hence there is a inverse correlation between FDI, Inflation and BVPS and the value of correlation between GDP,FII and BVPS is1 it means there is a correlation between GDP, FII and BVPS.
ICICI Bank Ltd.is an Indian diversified financial services company headquartered in Mumbai. It is the second largest bank in India by assets and third largest by market capitalization. It offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries in the areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank has a network of 2,533 branches and 6,800 ATM's in India, and has a presence in 19 countries, including India.
Page 63
ICICI BANK
INDEPENDENT FDI GDP INFLATION
DEPENDENT net profit net profit net profit
CORRELATION 0.76945 0.667854 -0.83402
FII
net profit
-0.97429697
The value of correlation between Inflation, FII and NP is negative hence there is a inverse correlation between FII, Inflation and NP. and the value of correlation between GDP,FDI and NP is1 it means there is a correlation between GDP,FDI and NP.
INDEPENDENT FDI
DEPENDENT EPS
GDP
EPS
0.775602
INFLATION
EPS
0.972162
FII
EPS
0.774182
Page 64
Here variables results have 1 value so FDI, GDP, Inflation, FII&EPS have correlation between EPS and FDI, GDP, Inflation & FII.
INDEPENDENT FDI
CORRELATION
0.43672 GDP INFLATION FII Debt equity Ratio Debt equity Ratio Debt equity Ratio 0.67549 0.45637 0.64532
FDI, inflation & DER is 0 Therefore there is no correlation between FDI,INFLATION and DER and the value of correlation between GDP , FII and DER is1 it means there is a correlation between GDP, FII and DER. INDEPENDENT FDI DEPENDENT Dividend payout ratio 0.76432 GDP Dividend payout ratio -0.99066 CORRELATION
INFLATION
0.998164
FII
Dividend payout ratio 0.65486
The value of correlation between GDP and DPR is negative hence there is a inverse correlation between GDP and DPR. and the value of correlation between FDI, Inflation, FII and DPR is1 it means there is a correlation between FDI, FII, Inflation and DPR.
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INDEPENDENT FDI
GDP INFLATION
-0.77534 -0.55346
FII
0.99
The value of correlation between GDP, Inflation and BVPS
is negative hence there is a
inverse correlation between GDP, Inflation and BVPS. And the value of correlation between FDI, FII and BVPS is1 it means there is a correlation between FDI and FII.
Page 66
FINDINGS In IT sector, HCL has positive correlation with respect to NP, EPS, BVPS &DER as well as good inflow of FDI, FII and GDP growth compare to others like INFOSYS & WIPRO. Cement sector is showing ve correlation because of less inflow of FDI,FII as well as +ve inflation and decrease in GDP and intending all the companies like AMBUJA,ACC and INDIA CEMENT are performing neither good nor bad. Petroleum sector is performing well because of increased inflow of FDI, FII and increase in GDP as well as less inflation among HP, BP, IOC both HP and BP are showing growth. Banking sector is showing good growth because of +ve NP, BVPS, DPR, DER &EPS and also increased inflow of FDI, FII, as well as growth in GDP and less inflation. Among all sectors like IT, CEMENT, PETROLIUM and BANKING, banking sector is performing well because good NP, BVPS, DPR, DER & EPS, as well as good inflow of FDI, FII, increase in GDP and low inflation.
Page 67
RECOMMENDATIONS FDI and FII have impact on performance of Infosys stock in the market therefore it is suggested that investors should monitor these indicators while taking buy or sell decision about Infosys. FDI and FII are very poor performing as well as GDP. Therefore it is suggested that investors should monitor the indicators while taking buy/sell decision about Wipro stock. FDI and FII are positive and performing well of HCL stock in the market therefore. It is suggested that investors should monitor these indicators while taking buy/sell decision about HCL stock. FDI and FII are negative & neutral meanwhile INFLATION is also showing positive 0f ACC stocks in the market therefore it is suggested that investors should be very concentrate or analyze these indicators while taking buy/sell decision of ACC stock. FDI&INFLATION are comparatively performing well while INFLATION is also showing negative of AMBUJA stock in the market therefore it is suggested that investors should be very concentrative while taking buy/sell decision of Ambuja stock. FDI&FII are performing neither good nor bad of INDIA CEMENT stock in the market therefore it is suggested that investors should be very concentrative while taking buy/sell decision of INDIA CEMENT stock. FDI&FII are performing neither good nor bad as well as GDP of INDIAN OIL CORPORATION stock in the market therefore it is suggested that investors should monitor while taking buy/sell decision of IOC stock.
Page 68
GDP&FII are performing good as well as FDI of HP stock in the market therefore it is suggested that investors should monitor these indicators while taking buy/sell decision of HP stock. FDI&FII both are performing good and as well as GDP of BP stock in the market therefore it is suggested that investors should directly invest in BP. FDI&FII is performing well as well as GDP also of SBI stock in the market so that it is suggested that investors can buy/sell and make a right decision while taking buy/sell decision SBI stock.
FDI is performing good comparing to FII&GDP is also positive sign of CORPORATION BANK in the stock market so that investors should monitor these indicators while taking buy/sell decision about CORPORATION BANK stock. FDI, FII&GDP are performing of ICICI bank stock in market therefore it is suggested that investors can take good decision of buy/sell about ICICI bank stock.
Page 69
CONCLUSION
In the Stock market the prices of securities have more fluctuation during the year. One can improve his chances of success if he selects stock from within an industry group that is doing well, or is expected to do well. Stock market or capital market provides the industry with a lot of capital needed by the industry, which leads to the growth of the industry and economy as a whole; hence the stock market plays an important role in the development of the industry. More and more people are attracted towards share market because of the returns they get compared to bank deposits, saving account, mutual funds etc; hence stock broking is growing day by day.
While taking decision, the investor should take relevant information whether the market is bullish or bearish. The analysis like fundamental is very important to take better decision of buying and selling of shares. Stocks should not be judged based on only one time frame. To conclude, investing in the equity market is very risky. So the investor should analyze the information, which is available in the market. On the basis of the trend investor should take the decision of buying and selling of shares. Short-term investment in the equity may be unfavorable but long-term investment will always be favorable. So investor has to prefer the long-term investment.
Page 70
Annexure
GDP v/s BOOK VALUE PER SHARE of INFOSYS company
Correlation(r) =[ NXY - (X)(Y) / SQRT ([NX2 - (X)2][NY2 - (Y)2])]

x (GDP) 7.8 7.2 8.5 23.5 x2 60.84 51.84 426.73 72.25 1121.64 184.93 y2 96652.59 147471.4 182098.5 426222.4 nx2 182.52 155.52 216.75 554.79
Year 200809 200910 201011
y(BVPS) 310.89 384.02
Xy 2424.942 2764.944 3627.205 8817.091
nxy 7274.826 8294.832 10881.62 26451.27
(x)(y) 2424.942 2764.944 3627.205 26358.54
(x)2 60.84 51.84 72.25 552.25
ny2 289957.8 442414.1 546295.5 1278667
(y)2 96652.59 147471.4 182098.5 1258076
numerator denominator sort 4849.884 5529.888 7254.41 92.733 23521375 4849.884 30579661 5529.888
52626464 7254.41 52301.26 228.6947 0.405488
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BIBLIOGRAPHY: INDIAN ECONOMY RUDDAR DATT & K.P.M. SUNDHARAM P.K.JAIN JOSETTE PEYRARD SURENDRA S YADAV
INERNATIONAL FINANCIAL MANAGEMENT
Page 72

Mallu MBA: PG Department of Business Administration, BELAGAVI

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PG Department of Business Administration, BELAGAVI

PG Department of Business Administration, BELAGAVI

PG Department of Business Administration, BELAGAVI

Inception of Reliance Money

PG Department of Business Administration, BELAGAVI

PG Department of Business Administration, BELAGAVI

PG Department of Business Administration, BELAGAVI

2.10 Work Flow Model.

BSE/ NSE Terminal.

aspects of an organization that need to be aligned if it is to be successful

Hard and soft elements of MC KINSEYS 7s model

PG Department of Business Administration, BELAGAVI

PG Department of Business Administration, BELAGAVI

PG Department of Business Administration, BELAGAVI

PG Department of Business Administration, BELAGAVI

ANALYSIS OF FINANCIAL STATEMENT

Key Financial Ratios of Reliance Capital

Mar '09 Mar '10

PG Department of Business Administration, BELAGAVI

13.19 13.16 12.03 12.03 14.02

12.51 12.54 210.12 210.12 11.84

17.01 18.39 245.29 245.29 10.83

14.45 15.18 272.66 272.66 15.37

4.92 4.74 280.32 280.32 9.85

11.60 11.57 0.04 0.04

19.36 19.34 0.27 0.27

10.18 10.14 1.55 1.55

1.57 26.31 2.02 1.26

2.48 7.43 1.72 1.49

13.15 0.04 13.67 13.41

18.24 0.27 18.40 16.32

4.07 1.55 4.11 3.55

1.91 2.02 1.93 1.80

1.35 1.72 1.34 1.28

-28.50 --0.15 1.72 --1,044.8

-5.88 1,081.71 -0.13 2.95 --1,660.58

-9.41 --0.13 6.39 ---

-22.05 ---8.79 ---

-23.35 ---12.54 ---

1,831.07 1,412.84 1,216.9

PG Department of Business Administration, BELAGAVI

55.03 52.24 42.80 45.81 34.69

Mar '06 Earnings Per Share Book Value 24.12 182.75

Mar '08 Mar '09

Mar '10 13.82 283.31

PG Department of Business Administration, BELAGAVI

PG Department of Business Administration, BELAGAVI

PG Department of Business Administration, BELAGAVI

PG Department of Business Administration, BELAGAVI

Limitations of the study:

ANALYSIS AND DESIGN

DEPENDENT net profit

net profit net profit

PG Department of Business Administration, BELAGAVI

GDP INFLATION FII

Debt equity Ratio Debt equity Ratio Debt equity Ratio

0.883452 0.34521 0.283812

PG Department of Business Administration, BELAGAVI

DEPENDENT Dividend payout ratio

Dividend payout ratio

Dividend payout ratio