share price orizinal project[1]

8/6/2019 Share Price Orizinal Project[1]

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CHAPTER I

INTRODUCTION

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Chaptarisation:

Chapter 1:- Introduction

Need and Importance of the study

Objectives for the Study

Scope for the Study

Research Methodology of the Study

Limitations of the Study

Chapter 2:- Corporate Profile

Industry Profile

Company Profile

Business Structure

Branch Profile

Chapter 3:- Conceptual Frame Work

Fundamental Analysis

Technical Analysis

Chapter 4:- Data Analysis and Interpretation

Tables and Line Charts

Chapter 5:- Findings and Conclusions

Bibliography

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INTRODUCTION ON FINANCIAL MARKETS

The economic development of any country depends upon the existence of a

well organized financial system. It supplies the necessary financial inputs for the

production of goods and services which in turn promote the well being and standing

of living of the people of a country. The financial system provides the intermediation

between savers and investors and promotes faster economic development.

The clarification of financial markets in India, which are following the way

Unorganized markets are number of money lender, indigenous bankers, traders

etc. who lend money to the public, indigenous bankers also collect deposits from the

public.

Organized markets are standardized rules and regulation governing their

financial dealings. There is also a high degree of institutionalization andinstrumentalisation. These markets are subject to strict supervision and control by the

RBI or other regulatory bodies.

These organized markets can be further classified into two. They are:

(1) Capital Markets

(2) Money Market

( 1 ) Capital Market:

Capital market is a market for financial assets which a long and indefinite

maturity. Generally it deals with long term securities which have a maturity. period of

above one year. Capital market may be further divided into three namely,

(i) Industries securities market

(ii) Government securities market, and(iii) Long term loans market.

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( i ) Industrial securities market:

It is the market where industrial concerns raise their capital or debt by issuing

appropriate instruments. It can be further subdivided into namely. They are

( a ) Primary Market:

Primary market is a market for new issues or new financial claims. Hence, it is

also called new issue market.

( b ) Secondary Market:

Secondary market is the market for secondary sale of securities. In other

words securities which have already passed through the new issue market are traded

in this market. The stock exchanges in India are regulated under the securities

contracts (regulation) act, 1956.

(ii) Government Securities Market:

In India there are many kinds of government securities are traded short

term and long term securities are traded in this market while short term securities are

traded in the money market.

Government securities are in many forms. These are generally

(a) Stock Certificates or inscribed stock

(b) Promissory Notes

(c) Bearer Bonds which can be discounted.

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(ii) Long term Loans Market:

Development banks and commercial banks play a significant role in this

market by supplying long term loans to corporate customers, long term loans market

may be further classified into

(a) Term Loans Market

(b) Mortgage market

(c) Financial guarantee market.

(a) Term Loans Market:

In India, many industrial financing institutions have been created by thegovernment both at the national and regional levels to supply long term and mediumentrepreneurs and support modernization effects.

(b) Mortgages Market:

The mortgages market refers to these centers which supply mortgage loan

mainly to individual customers. In India residential mortgages are the most common

ones. The houses & urban development corporation (HUDCO) & LIC play a

dominant role in financing residential projects. Mortgage loan is a loan security of

immovable property like real estate.

(c) Financial Guarantee Market:

A Guarantee market is a centre where finance is provided against the

guarantee of a reputed person in the financial circle. In case of a borrower fails to

repay the loan the liability falls on the shoulders of the guarantor, government both

central and states and other specialized guarantee institutions like ECGC (Export

Credit Guarantee Corporation)

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Money Market:

The money market is place where the demand and the supply of short

term funds meet. According to crowther.

The money is the collective name given the various firm and institutions that deals in

the various grade of near

Lenders:

Reserve bank of India

Commercial bank

Broker

Barrower:

Commercial banks

Stock brokers

Orther financial institutions

Bussines house

Government

Sub market in the Indian money market:

Call money market:

India call money market represent the market for inter bank lending and

barrowing.the loans given is the markets are of a short nature the maturity thus loans

various between one and two weeks.

Bill market:(Discount market)

Bill market is a place where bills accepected by the bankers are accepeted hose are

discounted. a well organized and well developed discount market is and essential

condition per and efficient money market there are specialized institutions known as

discounts for houses for discounting bills of exange accepected accepected by

reputed by house.

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Short term government security market:

In India a short government security is very important as the bill market is not well

developed indain commercial banks invest considerable portiuon of they resouces

short government securitys.

They prepared to invest theire in thus securitys because they provide liquidity and

elasticity in time of diffculty they can sell them in the market does increase thire cash

reserves.the bank also barrow from RBI against the securitys.

Collateral loan market:

Collateral loan market is orther important Indian market.collateral means any thing

pledged as securitys repaymets.of the loans and advances of commercial banks

arecoverd collateral such as government securitys,gold,silver,stocks of corporation

and merchandise.collartel tken from of loans,overdrafts and cash credit.a major

portion of the resources of commercial bank is invested them

Money market instruments:

The instrument which is deals in the money market are of short nature.their maturity

period usually various between 14 and 364 days

examples are.

Treasury bills

Bills of exchange or trade bills

Finance bill or usence promisory notes.

Commercial papers.

Certificate of deposits.

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Importance of Capital Market:

The important of capital market can be briefly summarized as follows:

(1) It provides incentives to saving & facilitates capital formation by

offering suitable rates of interest as the price of capital.

(2) The capital market serves as input sources for the productive use of the

economys savings. It mobilizes the savings of the people for further

investment & thus avoids their wastage in unproductive uses.

(3) It serves as an important source for technological up gradation in the

industrial sector by utilizing the funds invested by public

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Modes of Issue:

There are three of model of issue, which are following in the way.

(1) Initial public offering

(2) Private Placements

(3) Right Issues

(1) Initial Public Offering:

The company can arise money by either issuing debt or equity. If the

company has never issued equity the public is known as IPO.

Corporate may arise capital in the primary market by way of an IPO, Right

issue or private placement. An IPO is selling of securities to the public in primary

market. This IPOs can be made through book building, fixed price method or

combination of both.

(2) Private Placement:

Under this method, the issue houses or brokers buy the securities outright

with the intention of placing them with their clients afterwards. There is no need for a

formal prospectus as well as underwriting agreement. This method of private

placement is used to a limited extent in India. The promoters sell the shares to their

friends, get minimum subscription which is a precondition for issue of shares to the

public.

(3) Right issue:

Right issue is a method of raising in the market by existing company.A right

means an option to buy certain securities at a certain privileged price within a certain

specified period. Section 81 of the companies Act, deals with rights issue. According

to this section, where a company increases its subscribed capital by issue of new

shares.

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Book Building in India:

The book building method of pricing securities in becoming popular in India.

During 1997-98 various issues like IPCL , HAI, IOC and Hindalco industries have

used book building route to the coupon rate on their bond issues.

Book Building Process:

SEBI guidelines defines book building as, a process undertaken by which a

demand for the securities proposed to be issued by a body corporate is eluted and

build-up and the price for such securities is assessed for the determination of the

quantum of such securities to be issued by a means of notice, circular, advertisements

document or information or offer document.

It is a mechanism where, during the period of which the IPO is open, bids are

collected from investors at various price, which are above or equal to the floor price.

The offer price is determined after the bid closing dated based on certain evaluation

criteria.

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What is share price?

A share price is the price of a single share of companys stock. Once the

stock is purchased, the owner becomes a shareholder of the company that issued the

share. The price is calculated by dividing the market capitalization by the total

number of shares outstanding, when viewed over long periods, the share price is

directly related to the earnings and dividends of the firm, over short period, especially

for younger or smaller firms, the relationship between share price and dividends can

be quite irrational. A corporation can adjust its stock price by a stock split.

Factors influence on share price:

Share price are influenced by news a information new data on employment,

manufacturing directors dealings, political events or even the, whether all kinds of

news can influence the way shares move sometimes share price move in title.

EX: Invest rates shift, because investors try to anticipate what is going to happen

in the next few months and try to move their portfolios in or out of these stocks

before the rest of the market catches on.

(1) The Economy:

The health global economy has a fundamental influence on share prices

because it is ultimately responsible for driving company profits. If the economy is

growing, company profits improve and shares will become more highly valued.

Companies whose profits are closely tied to the health of the economy are known as

Cyclical Stocks.

(2) Company News:

The way investors interpret carrying out of companies is also a major

influence on share prices.

EX: A company puts out a warming that business are tough, shares will often

deep in value, a director buys shares in the firm.

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(3) Analysis reports:

Reports produced by independent analysts also influence share price. If an

analysts change their recommendation from sell to buy.

Ex: The shares will often rise in value. Analysts reports are produced primarily

by investment banks for professional investors, stockbrokers will make their research

available to private investors.

(4) Press Recommendation:

The financial pages of most national newspapers and investment and

magazines usually contain share tips, like analysts reports these can have major

influence on share price.

(5) Sentiment:

Investor sentiment is almost impossible to predict and can be infuriating.

Ex :- You have bought shares in a company that you think is a good buy but the

prices remains flat.

(6) Technical Influences:

Shares prices can rise and fall for a variety of technical reasons that may

have nothing to do with the actual outlook for an individual or the outlook for the

market. Another technical reason for share price to rise or fall is the quarterly

adjustment in the FTSE 100TM index. Shares that are expected to enter the FTSE

100TM May experience a sharper rise than one would expect in the weeks before

head white shares that leave the index can fall more sharply.

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Need and Importance of the Study

By the study of various sectors we find the share price behaviour

To compara the growth rate during the period of one year.

To analyse the company position

Objectives of the Study:

To examine the share price behavior of selected companies.

To examine the share price behavior at different intervals.

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To find out the reasons for increasing and decreasing those Prices.

To find out the behavior of share prices depending upon Company growth.

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Scope of the Study:

The study confined to five sectors which includes.

(i) cement sectors.

(ii) Banking sectors.

(iii) Pharma sectors.

(iv) Power sectors.

(v) Computer and software sectors.

The comparison of share price is considered at four different

intervals.

Issue price to 3 months.

3 months to 6 months

6 months to 9 months

9 months to 12months

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Research Methodology of the Study:

Research design is some statement or procedures for collecting and analyzing

the information required for the solution of some specific problem. Data available in

business research are either primary or secondary.

The data collection methods include both primary and secondary collections

methods.

Primary Method.

Secondary Method.

Primary Method:

For any financial management study mutual interaction with company

executive and personal observations about the companies will help in acquiring the

primary data.

The various methods for find in primary data are observation survey

experimentation and mutual interactions.

This data collection method includes the data collection from the personal

discussions with the kellton stock brokers and some of the client of that company.

Secondary data collection method:

The secondary data for the studying is collected from both internal and

external sources of data for the report.

Majoring of data collection for the secondary source such as website of money

control com of Indian financial markets and collected relevant data from management

magazines.

After the collection of data from various sources share behavior of different

sectors is used to get the information of performance of management.

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Limitation of the Study:

The study confined is based on secondary data from news paper & magazines.

Data under consideration is taken from only 2010-2011.

The results of this study may not applicable in real time situation as it was

studies for a specific time and conditions vary time to time.

Study confined to select companys scrip only.

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CHAPTER IIINDUSTRY PROFILE

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Industry Profile

The Indian broking industry is one of the oldest trading industries that has

been around even before the establishment of the BSE in 1875. Despite passing

through a number of changes in the post liberalisation period, the industry has found

its way towards sustainable growth. With the purpose of gaining a deeper

understanding about the role of the Indian stock broking industry in the countrys

economy, we present in this section some of the research.

For the broking industry, we started with an initial database of over 1,800

broking firms that were contacted, from which 464 responses were received. The list

was further short listed based on the number of terminals and the top 210 were

selected for profiling. 394 responses, that provided more than 85% of the information

sought have been included for this analysis presented here as insights. All the data for

the study was collected through responses received directly from the broking firms.

The insights have been arrived at through an analysis on various parameters, pertinent

to the equity broking industry, such as region, terminal, market, branches, sub

brokers, products and growth areas.

Some key characteristics of the sample 394 firms are:

On the basis of geographical concentration, the West region has the maximum

representation of 52%. Around 24% firms are located in the North, 13% in

the South and 10% in the East.

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3% firms started broking operations before 1950, 65% between 1950-1995

and 32% post 1995.

On the basis of terminals, 40% are located at Mumbai, 12% in Delhi, 8% in

Ahmedabad, 7% in Kolkata, 4% in Chennai and 29% are from other cities.

From this study, we find that almost 36% firms trade in cash and derivatives

and 27% are into cash markets alone. Around 20% trade in cash, derivatives

and commodities.

In the cash market, around 34% firms trade at NSE, 14% at BSE and 52%

trade at both exchanges. In the derivative segment, 48% trade at NSE, 7% at

BSE and 45% at both, whereas in the debt market, 31% at NSE, 26% at BSE

and 43% at both exchanges.

Majority of branches are located in the North, i.e. around 40%. West has

31%, 24% are located in South and 5% in East.

In terms of sub-brokers, around 55% are located in the South, 29% in West,

11% in North and 4% in East.

Trading, IPOs and Mutual Funds are the top three products offered with 90%

firms offering trading, 67% IPOs and 53% firms offering mutual fund

transactions.

In terms of various areas of growth, 84% firms have expressed interest in

expanding their institutional clients, 66% firms intend to increase FII clients

and 43% are interested in setting up JV in India and abroad.

In terms of IT penetration, 62% firms have provided their website and around

94% firms have email facility.

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Terminals:

Almost 52% of the terminals in the sample are based in the Western region of

India, followed by 25% in the North, 13% in the South and 10% in the East. Mumbai

has got the maximum representation from the West, Chennai from the South, New

Delhi from the North and Kolkata from the East.

Mumbai also has got the maximum representation in having the highest

number of terminals. 40% terminals are located in Mumbai while 12% are from

Delhi, 8% from Ahmedabad, 7% from Kolkata. The financial markets have been

classified as cash market, derivatives market, debt market and commodities market.

Cash market, also known as spot market, is the most sought after amongst investor.

Majority of the sample broking firms are dealing in the cash market, followed by

derivative and commodities. 27% firms are dealing only in the cash market, whereas

35% are into cash and derivatives. Almost 20% firms trade in cash, derivatives and

commodities market. Firms that are into cash, derivatives and debt are 7%. On the

other hand, firms into cash and commodities are 3%, cash & debt market and

commodities alone are 2%. 4% firms trade in al the markets. 4% from Chennai and

29% are from other cities in India.

Financial Markets:

The financial markets have been classified as cash market, derivatives market,

debt market and commodities market. Cash market, also known as spot market, is the

most sought after amongst investors. Majority of the sample broking firms are

dealing in the cash market, followed by derivative and commodities. 27% firms are

dealing only in the cash market, whereas 35% are into cash and derivatives.

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Almost 20% firms trade in cash, derivatives and commodities market. Firms

that are into cash, derivatives and debt are 7%. On the other hand, firms into cash

and commodities are 3%, cash & debt market and commodities alone are 2%. 4%

firms trade in all the markets.

Branches and sub brokers:

The maximum concentration of braches is in the North, with as many as 40%

of all branches located there, followed by the Western region, with 31% branches.

Around 24% branches are located in the South and East constitutes for 5% of the total

branches of the total sample.

In case of sub-brokers, almost 55% of them are based in the South. West and

North follow, with 30% and 11% sub-brokers respectively, whereas East has around

4% of total sub-brokers.

Products:

The survey also revealed that in the past couple of years, apart from trading,

the firms have started offering various investment related value added services. The

sustained growth of the economy in the past couple of years has resulted in broking

firms offering many diversified services related to IPOs, mutual funds, company

research etc. However, the core trading activity is still the predominant form of

business, forming 90% of the firms in the sample. 67% firms are engaged in offering

IPO related services. The broking industry seems to have capitalised on the growth of

the mutual fund industry, which was pegged at 40% in 2006.

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More than 50% of the sample broking houses deal in mutual fund investment

services. The average growth in assets under management in the last two years is

almost 48%. Company research is another lucrative area where the broking firms

offer their services; more than 33% of the firms are engaged in providing company

research services. Additionally, a host of other value added services such as

fundamental and technical analysis, investment banking, arbitrage etc are offered by

the firms at different levers.

Of the total sample of broking houses providing trading services, 52% are

based in the West, followed by 25% from North, 13% from South and 10% from the

East. Around 50% of the firms offering IPO related services are based in the West as

compared to 27% in North, 13% in South and 10% in East. In providing mutual

funds services, the Western region was dominant amounting to 49% followed by 27%

from North; The South and the East are almost at per with 13% and 11%

respectively.

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Company Profile

Kellton (Services with Personal touch):

Kellton Financial Services is an enterprise with the driving principle of taking

financial services to the next level of personalization and customization. We, at

Kellton understand the value of interactions at a more personal level as opposed to

just transactions at a business level.

Kellton have strong research capabilities and relationships which can be

leveraged to better asses market trends to benefit. With a strong Indian presence and

global relationships, Kellton deliver a unique blend of investment banking and related

services.

Kellton professionals understand the financial needs and create financial

structures that optimize value for us.

Kellton at present offer strategic custom solutions in equities commodes,

mutual funds, port folio management services and investment banking.

Kellton provides the personalized business strategies to sent new precedents in

performance. But forming new alliances organizing access to new market share

Kellton helps beat the curve by a keeh eye for growth.

Corporate Finance in Kellton:

Corporate finance is a crucial area for growing companies and big brands like,

at Kellton they design financial policies implement and monitor them, plan and

execute financial programs, and manage cash resources more importantly company

create a wonderful interface for your company with the financial community and

investor.

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The services that offer under corporate finance include: Capital investment

management, working capital management, financial risk management, Kellton

experienced advisory team with its extensive knowledge of financial markets provides

you with dear analysis of the different alternatives and personal cons and each one,

which is essential to make informed decisions.

Asset Management:

For the past quarter century, the asset management business has been rapidly

growing and evolving, helped by demographic, technological, regulatory and global

economic trends. Asset management activities include traditional fiduciary service,

retail brokerage, investment company services and custody and security holder

services.

In the Kellton our professionals help you with the implementation of

methodological plan sand polices in co-ordination with effective risk management

systems to achieve our companies strategic goals and financial objectives companies

professional swill work with us through out the process of planning and procurement

and carefully evaluate which ones to procure so as to maximize productivity and

returns.

Portfolio Management:

Kellton core competencies in the portfolio management services lie in our

global expertise, ability to react instant an cously to changing market trends, and build

innovative financial models and structures and execute them effectively. In-depth

understanding of the volatile financial market sand access to critical economic

information forms the backbone of Kellton functionality.

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Wed liver our services to make investments more profitable by developing

tailor made investor-specific strategies. Delegating the clients investment

management to us allows them to gain ready access to highly sophistic financial

information and investment expertise in a more personalized and evaluate format,

which other wise available only to large institutional investors.

Equities:

Kellton offers us a strategic meticulous and personalized approach to

maximize the monetization and reach your investment goals by trading effectively in

equities. With research and analysis conducted at Kellton by a team of highly

experienced and talented professionals in the industry we provide diligent and

deliberate solutions to deal with equities. Professionals at Kellton identify good

shares to invest in both by the study of the price history of shares and the stock market

as a whole using an array of definitive indicators. Kellton also perform fundamental

analysis by studying all significant information relevant to the stock and market in

question such as annual reports and accounts, and industry data to better understand

the trajectory of the share prices. More over, our core theme of personalized service

implies that you can reach Kellton professionals to get complete under standing of the

transactions at any phase of the process. Kellton insights into the market trends allow

you to obtain the diversification of the funds supplemented by the skill of Kellton

professional fund managers in charge of the funds.

Branches of Kellton:

INDIA

Hyderabad:

41, Sagar Society, Road No. 2, Banjara Hills, Hyderabad 500 034.

Phone : 040-44333000

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Secunderabad:

409, 4th floor, Navketan, Opp: Clock Tower, S.P. Road, Secunderabad 500 003.

Phone : 040-66316231/32 .

Chennai:

Old No. 2, New No. 3, Seethammal Colony Extension, 1st Main Road, Teynampet,

Chennai 600 018.

Phone : 040-43009670.

USA:

Virginia:

11627, Hunders Green ct., Reston, VA-20191, USA.

Phone : 703-802-6090.

HONG KONG:

Central:

78, Chung Hing Commercial Building, Queens Road, Central, Hong Kong.

Mutual Funds in Kellton:

Mutual funds have been a popular investment vehicle for investors since their

conception. The secret to success in mutual funds in the ability to diversify assets and

creating a right mix of investments with in a portfolio so as to minimize risks from

market fluctuations and maximize performance.

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Kellton with its wide-ranging experience and market expertise, can help you in

choosing the right combination of stocks with the immediate benefit of instant

diversification and asset allocation without the large amounts of cash needed to

created individual portfolios our professionals help you to select a mix of different

capitalizations from different industries.

Careers:

Kellton is dynamic place to work giving you the advantage of a growing

company where your voice is heard. Kellton believe that the growth of any

organization is directly proportional to the sum of the growth rates of its employees.

We are looking at a future where every one potential is fully explored. At Kellton,

you get the opportunity to learn about industries and markets. Which makes it an

unparallel career option.

Kellton is looking for forward thing, passionate and pro active people.

Mission & Vision:

Our mission is the foundation on which the orange if action is built, our vision

is our aspiration to continually improve and growth; to become the best our values

guide us through our actions.

Missions:

To take financial service to the next level of personalization and customization

with emphasis on value of interactions at a more personal level than just transactions

at a business level.

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Vision:

To be a respected enterprise that provides best of breed financial solutions

with a personal touch.

Values:

Commitment, dedication, integrity, team work, passion and attitude are the

core values that guides us through our actions.

Board of Directors:

Niranjan Chintan

Rajendra vani wadekar

Krishna Chintam

Jhon Linton

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CHAPTER-IIICONCEPTUAL FRAMEWORK

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Fundamental Analysis

The intrinsic value of an equity share depends multitude of factors. These

factors in turn rely on the host of other factors like economic environment in which

function, the industry they belong to, and finally companies own performance. The

fundamental analysis thought appraised the intrinsic value of shares.

Economic Analysis

Industry Analysis

Company Analysis

Economic Analysis:

The level of economic activity has an impact on investment in many ways. If

the economy grows rapid industry can also be expected to show rapid growth and

vice-versa. When the level of economic activity stock prices are low, and when the

level of economic activity is high. Stick prices are high reflecting prosperous outlook

for sales and profits of the firms. The analysis of macro economic environment isessential to understand the behavior of the stock prices. The commonly analysis

macro economic factors follow:

Gross Domestic Product (GDP):

GDP indicates the rate of growth of the economy GDP consists of personal

condition expenditure, grow private domestic investment and govt. expenditure on

goods and services of net export of goods and services. The estimates of GDP are

available on an annual basis. The rate of GDP is around 6% in the nineties. The

growth rate of economy points out the prospectus for the return investors can expect

from investment in shares. The higher growth rate is more favorable to stock market.

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Savings and Investment:

In is obvious that growth requires investment which in turn requires initial

amount of domestic savings. Stock market is a channel through which the savings of

the investors made available to the corporate bodies. Savings are distributed over

various assets like equity shares, debentures, mutual funds units, real estate and

bullion.

Infllation:

Along with the growth of GDP, if the inflation rate also increases, then the real

rate of growth would be very little. The demand in the consumer product industry is

significantly affected. the industries which come under the government price control

policy may lose the market.

Interest Rates;

The Interest rate affects the cost of financing to the firm. A decrease in interest

rate implies lower cost of finance for firms and more profitability. More money is

available at a lower interest rate for the brokers who are doing business with borrowed

money. Availability of cheap found, encourages and rise in the rice of shares.

The Balance of Payment:

The balance of payment is the record of a countrys money from and payment

abroad. The difference between receipts and payments may be surplus or deficit.

Balance of payment is a measure of the strength of rupee on internal account. If the

deficit increases, the rupee may depreciate against other currencies, thereby affecting

the cost imports.

Monsoon and Agriculture:

Agriculture is directly and indirectly linked with the industries for ex:- sugar,

cotton, textile and food processing industries depends upon agriculture for raw-

material, fertilizers and insecticide industries are supplying inputs to the agriculture.

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A good monsoon leads to higher demand for inputs and results in bumper crop. When

the monsoon is bad, agriculture and hydel power production would suffer. They cost a

shadow on the share market.

Infrastructure Facilitates:

Infrastructure facilities are essential for the growth of industrial growth and

agricultural sector. A wide net work of communication system is a must for the

growth of the economy banking and financial sectors also should be sound enough to

provide adequate support to the industry& agriculture. In India even though

infrastructure facilities have been developed.

EX:- power sector has been opened up to the foreign investors with assured rates ofreturns.

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graphic Factors:

The demographic data provides details about the population by age, occupation

literacy and geographic location. This is needed to forecast the consumer goods. The

population by age indicates the availability of able work force. India labour is cheaper

compared to the western labour force.

Economic Forecasting:

To estimate the stock price changes, an analysis has to analyze the macro

economic environment and the factors peculiar to the industry he is concerned with.

The economic affect the corporate profile, investors, attitude and the share prices, fall

in the GDP or slackness in the economic growth may lead to fall in corporate profit

and consequently the security prices. For the purpose of economic analysis, an analyst

should be familiar with the forecasting techniques. These techniques help him to

decide the right time to invest and the type of security he has to purchase i.e., sticks or

bonds or some combinations of stocks and bonds.

Economic Indicators:

The economic indicators are factors that indicate the present status, progress or

slow down of the economy. They are capital investment, business profits, money

supply, GNP, interest rate unemployment rate etc. The indicators are selected on the

following criteria.

Economic Significance

Statistical Adequacy

Timing

conformity

The leading indicators what is going to happen in the economy. It helps the

investor to predict the path of the economy. The popular indicators are the fiscal

policy, monetary policy, productivity rainfall, capital investment and the stocks

indices. The rise of BSE Sensex and NSE nifty shows that the economy is heading for

recovery.

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If there is a large gap between the budgeted GDP and the actual GDP attained

indicates the present situation. The changes that are occurring in the leading and co-

incidental indicators are reflected in the lagging indicators. Lagging indicators are

identified as unemployment.

Diffusion Index:

Diffusion index is a composite or consensus index. The diffusion index

consists of leading, co-incidental and lagging indicators. This type of index has been

constructed by the national bureau of economic research in USA. But the diffusionindex is complex in nature to calculate and the irregular movements that occur in

individual indicators cannot be completely eliminated.

Economic Model Building;

For model building several economic variables are into consideration. The

relationship between the independent and depend variable is given mathematically.

He can forecast not only the also the magnitude. But his prediction depends on his

understanding of economic theory and the assumption on which the model has been

built.

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Industry Analysis:

An industry is a group of firms that have similar technological structure of

production and produce similar product. For the convenience of the investors, the

broad classification of the Industry is given in financial and magazines, companies are

distinctly classified to give a clear picture about their manufacturing and produce and

products.

Industry groups:

SI.NO INDUSTRIES

1.

2.

3.

4.

5.

6.7.

8.

9.

10.

Food Products

Beverage, Tobacco and Tobacco products

Textile

Wood and wood products

Leather and leather products

Rubber and rubber productsChemical and chemical products

Transport Equipment and parts

Basic metals, alloys and metal products

Machinery and machine tools

The above table shows that each industry is different form other. Textile

industry is entirely different from the steel industry or the power industry in it product

& process.

These industries can be classifies on the basis of a business cycle i.e.,

according to their reactions to the different phases of the business cycle. They are

classified into growth, cyclical, defensive and cyclical growth industry.

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(1) Growth Industry:

The growth industries have special features of high rate of earning & growth in

Expansion, independent of the business cycle. The expansion of the industry mainly depends

on the technological change. For instance, in spite of the recession of the Indian economy in

1997-98, the growth of information technology industry.

(2) Cyclical Industry:

The growth and the profitability of the industry move along with the business cycle.

During the boom period they enjoy growth and during depression they suffer a set back, thewhite goods like fridge, washing machine & kitchen range products.

(3) Defensive Industry:

Defensive industry defines the movement of the business cycle.

EX:- Food & shelter are the basic requirements of humanity. The sticks of the

defensive industries can be held by the investors for income earning purpose.

(4) Cyclical Growth Industry:

This is a new type of industry that is cyclical and at the same time growing.

EX:- The automobile industry experience periods of stagnation, decline but

they grow tremendously.

Industry Life Cycle:

The industry life cycle theory is generally attributer to Julius grondensky . the cycle of

the industry is separated into four well defined stages such as:

Pioneering Stage

Rapid growth stage

Maturity & Stabilization stage

Declining Stage

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Pioneering Stage:

The prospective demand for the product is promising in this stage and the technology

of the product is low. The demand for the product attracts may produces try to develop brand

name differentiae the product and creative a product image.

Rapid Growth Stage;

This stage starts with the appearance of surviving firms the pioneering stage. The

companies that withheld the competition grow strongly in market share and financial

performance. The technology production would have improved resulting in low cost ofproduction and quality products. The companies have stable and they declare dividend to the

shareholder. It is advisable to invest in the shares of these companies. In this stage growth

rate is more than the industrys average growth rate.

Maturity and Stabilization Stage:

In this stabilization stage, the growth rate tends to moderate the rate of growth would

be more or less equal to the industrial growth rate or the gross domestic product growth rate.

Declining Stage:

In this stage, demand for the particular product & the earnings of the companies in the

industry decline. Now-a days very few consumers demand black and white television.

Innovation of new products & changes in consumer preferences lead to this stage. It is better

to avoid investing the shares of the low growth industry even in the boom period.

Factors to be Considered:

Apart from industry life cycle analysis the investors has to analyze some other factors

too. They are listed below:

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Growth of the industry

Cost Structure & Profitability

Nature of Product

Nature of the Competition

Government policy

Labour

Research & Development

Growth of the Industry:

The historical performance of the industry in terms of growth and profitability should

be analyzed. Industry wise growth is published periodically by the centre for monitoring

Indian Economies. Even though the history may not repeat in the exact manner.

Cost Structure&Profitability:

The cost structure, that is the fixed and variable cost, affects the cost of the production

and profitability of the firm. In case of oil and nature gas industry and iron & steel industry

the fixed cost portion is high & the gestation period is also lengthy.

Nature of the Product:

The products produced by the industries are demanded by the consumers & other

industries. If industrial goods like pig iron, iron sheet & coils produced, the demand for them

depends on the construction industry. The investor has to the conditions of related goods

producing industry & the end user industry to find out demand for industrial goods.

Nature of the Competition :

It is an essential factor that determines the demand for the particular product. Its

profitability & the price of the concerned company scrips, the supply may arise from

indigenous producers & multi nationals. The multinational are also entering into field with

sophisticated product process & better quality product. The investor before investing in the

scrip of company, should analyze the market share of the particular companys product.

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Government Policy:

The govt. policies affect the very nerve of the industry & the effects differ from

industry to industry. Government regulates the size of the production & the pricing of certain

product. The govt. policy regarding the particular industry should be carefully evaluated;

liberalization & deli censing have brought immense threat to the existing domestic industries

in several sectors.

Labors:

The analysis of labour scenario in a particular industry is of great importance. If the

trade unions are strong & strikes over frequently. In product market the company may stand

do lost with high cost of production. The unhealthy labour relationship leads to loss customer

goodwill too.

Research&Development:

For any industry to survive the competition in the nation & international markets,

product & product process have to be technically competitive. Economies of scale and new

market can be obtained only through R & D. the percent of expenditure made on R & D

should be studied diligently before making an environment.

Pollution Standers:

Pollution standards are very high & strict in the industrial sector. For industries it may

be heavier than other.

Ex:- In leather, chemical & Pharmaceutical Industrial effluents are more.

Swot Analysis:

The above mentioned factors themselves would become strength, weakness,

opportunity & threat (SWOT) for the Industry. Hence, the investor should carry out a SWOT

Analysis for the chosen industry.

EX:- Increase in demand for the Industrys product becomes its strength.

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Company Analysis:

In the company analysis the investor assimilates the several bits of information related

to the company & evaluates the present & future value of stock. The risk & return associated

with the purchase of the stock is analyzed to take better investment decisions. The valuation

process depends upon the investor ability to elicit information from the relationship & inter

relationship among the company related variable.

FACTORS SHARE VALUE

4

Competitive Edge

Earnings

Capital Structure

Management

Operating Efficiency

Financial Performance

Historic Price of Stock

P/E Ratio

Economic Condition

Stock Market Condition

Future Price Present Price


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The competitive edge of the company:

Major industries in India are compared of hundreds of individual companies. In the

information technology industry even through the number of companies is large few

companies like TATA, InfoTech, satyam computers, Infosys, NIIT etc., The competitioners

of the company can be studies with the

The Market Share

The growth of annual sales

The stability of annual sales

The Market Share:

The market share of the annual sales helps to determine a companys relative

competitive position within the industry. If the market share is high, while analyzing the

market share, the size of the company also should be considered because the smaller

companies may find it difficult to survive the future.

Growth of Sales:

The company may be a leading company, but if the growth in sales is comparatively

lower than another company. It indicates the possibility of the company losing the leadership.

The rapid growth in sales would keep the shareholder in a better position that is with the

stagnant growth rate. Investors generally prefer size & growth in sales because the larger size

companies may be able to withstand the business cycle rather than the company of smaller

size.

Stability of Sales:

If a firm has stable sales revenue, other things being remaining constant, will have

more table earnings wide variation in sales leads to variations in capacity utilization. All the

financial newspapers provide information about the market share of different companies in an

industry. The fall in the market share indicates the declining trend of company.

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Sales Forecast:

The company may be in a superior position commanding more sales both in monetary

terms and physical terms but the investor should have an idea whether it will continue in

future or not, forecast of sales has to be done. He can forecast the sales in different ways.

(1) The investor can fot a trend line either linear or non linear whichever is suitable.

(2) The sales growth can be compared with the macro economic values variables like

gross domestic product, per capita income & population growth.

(3) The demand for the substitutes & competitors product also should be analyzed using

least square techniques.

(4) Historical percentage of company sales to the industry sales can be analyzed. Evensimple least square technique could be used to find out the function C=f(I) i.e., C-

company sales; I-industry sales.

Earnings of the Company:

Sales alone do not increase the earnings but the costs and expenses of the company

also influence the earnings of the company. The companys sales might have increase but its

earnings per share may decline due to rise in costs. The volume of sales may decline but the

earnings may improve due to the rise in the unit price of the article. Hence, the investor

should not depend only on sales, but should analyze the earnings of the company.

The non-operating income may be generated from interest from bonds, rentals lease,

dividends from securities & sale of assets. The investors analyze the income source

diligently.

Whether it is from the sale of assets or it is from investments. The investor should be

aware that income of the company may vary due to the following reasons.

Change in sales

Change in Costs

Depreciation Method adopted

Depletion of resources in the case of oil, mining, forest produces.

Inventory amounting method

Replacement cost of inventories

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Wages, salaries & fringe benefits

Income taxes & other taxes

Capital Structure:

The equity holders return can be increased manifold with the help of financial

leverage, i.e., using debt financing along with equity financing. The effect of financial

leverage is measured by computing leverage ratios. The debt may be in the form of

debentures and term loans from financial institutions.

Preference Shares:

In early days the preference share capital was never a significant source of capital.

Many companies resort to preference shares. If the portion of preference share in the capital

is larger, it tends to create instability in the earnings of the equity shares when the earnings of

the company fluctuate. So the investor should look into the preference share component of

the capital structure.

Debt:

Long term debt is an important source of finance. It has the specific benefit of low

cost of capital because interest is tax deductible. The limit depends on the firms earning

capacity and its fixed assets.

Technical Analysis:

The technical analysis mainly studies the stock price movement of the security market.If there is an up trend in the price movement investor may purchase the scrip. Technical

analysis & fundamental analysis aim at good return on investment.

It is the process of identifying trend reversals at an earlier stage to formulate the

buying and selling strategy with the help of several indicators they analyze the relationship

between price volume and supply demand for the overall market and the individual stock.

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Assumption:

The market value of the scrip is determined by the interaction of supply & demand.

The marked discounts everything. The price of the security quoted represents the

hopes, fears and inside information received by market players. These factors may

cause a shift in demand & supply changing the direction of trends.

The market always moves in trend. Except for minor deviations the stock prices moves

in trends. The price may create definite patterns too.

Any layman knows the fact that history repeats itself. In the rising market investors,

psychology have up beats and they purchase the shares is greater volumes, driving theprices higher the market technicians assume that past prices predict the future.

Technical Tools:

Generally used technical tools are volume of trading, short selling, odd lot trading,

and indicators.

Indicators:

Technical indicators are used to find out the direction of the overall market. The

overall market movements affect the individual share price. Aggregate forecasting is

considered to be more reliable than the individual forecasting. The indicators are price &

volume of trade. The volume of trade is influenced by the behavior of price.

Volume of Trade:

Dow gave special emphasis on volume. Volume expands along with the bull market

and narrows down in bear market. If the volume falls with rise in price or vice-versa of

concern for the investor and the trend may not persist for a long and time. The market is said

to be bullish when small volume of trade and large volume of trade and large volume of trade

follow the fall in price and rise in price.

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Short Sales:

Short selling is a technical indicator known as short interest. Short sale refers to the

selling of shares that re not owned. The bears are the short sellers who sell now in the hop of

purchasing at a lower price in the future to make profits. Short sale of a particular month is

selected and compared with the average daily volume of the preceding month.

Odd lot trading:

Shares are generally sold in a lot of hundred shares sold in smaller lots, fewer than 100

are called odd lot. Such buyers and sellers are called odd lotters. The increase in odd lot

purchase results in an increase in the index. When the professional investors dominate the

market the stock market is technically strong.

Moving Average:

The market indices do not rise or fall in straight line. The upward and downward

movements and interrupted by counter moves. The underlying trend can be studied by

smoothening of data.

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CHAPTER-IV

DATA ANALYSIS

&INTERPRETATION

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Cement and Cement Product Sector

The Indian Cement Industry is the second largest cement producer in the world, with an

installed capacity of 144 million tones. The Industry has undergone rapid technological up

gradation and vibrant growth during the last two decades. Majority of the production of

cement in the country (94%) is by large plants. At present there are 124 large rotary kilo

plants in the country. Most of the cement plants in India are located in proximity to the raw

material sources. The southern region is the most cement rich region while other regions have

almost same cement production capacity. The Indian cement industry is about 90 years old its

main sources of energy or thermal and electrical energy. The cement industry has achieved

significant progress in terms of reducing the overall energy intensity.

HISTORY OF BARAK VALLEY CEMENT LIMITED COMPANY:

Barak valley cement limited was incorporated as a public limited company in the year

1999, under the companys act 1956. The company was promoted by Mr. prahlad rai

chamaria, Mr. bijay kumar garodia and Mr. santhosh kumar bajaj. The promoters of the

company are born and brought up in the north east region. Presently the company is engaged

in the business of manufacturing of cement of different grades and is marketing its product

under the brand name valley strong cement. The company is located is assam and all the

operations of the company are concentrated in the north eastern region, our operations

include raw material procurement, crushing, blending of cement.

Binani cement Ltd. Company overview:

The binani group, headquartered in New Delhi, India was founded in 1970by damodar

das binani. He completed his undergraduate degree in chemical engineering from jadavpur

university in Kolkata, west Bengal in 1968. Being born and brought up in an entrepreneurial

family, with the growing manufacturing sector and consumer industries in north India. In

1993, binani acquired bikaneer commercial co.Ltd from the kolkata based Kothari group.

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TABLE NO.4.1

Cement and Cement Products

TABLE NO.4.P1

Cement and Cement Products

Company

Name Price

3 Months 6 Months 9 Months 12 Months

Price

Growt

h in % Price

Growt

h in % Price

Growt

h in % Price

Growth

in %

BVCL45.0

5 31.6 -28.8531.9

5 -29.07 26.5 -41.17 19 -57.82

BINANI 77.8

79.8

5 2.63

102.

3 31.49

88.1

5 13.3 87.5 12.46

5

20

30

40


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Interpretation:

The above table 4.1 explained share price behavior of cement and cement products

sector. It has two companies which is barak valley cement limited and binani cement. It

analyzed 3 months and 6 months of growth in percentage of both companies.

The above table resulting that the barak valley cement limited price decreased by

-28.85 in 3 months from the data of listing where as binani cement comedown by

2.63% for the same period.

In 6 months period of time. Barak valley cement limited has dropped by 29.07% and

binani cement has appreciated by 31.49%.

In 9 months of a period the BVCL price is decreased by 41.17% where as binani is

increased by 13.30%.

In a period of year the barak valley cement limited is decreased by 57.82% where as

binani cement increased by 12.46%.

It concludes that the overall performance of binani better than BVCL.

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Banking Sectors:

The Indian banking industry is one of the most established sectors in India and also

one of the most important for the countrys economy. Indias banking sector stated as early as

the eighteenth century. Indian banking sector report provides extensive research and objective

analysis on the growing banking industry, their product quality, and their services in India.

The nationalized banks have more branches than any other types of banks in India. Now there

are about 33,627 branches in India as a march 2005. Indias retails banking assets are

expected to grow at the rate of 18% a year over the next four year (2006-2010). Today a

whole gamut of banks financial institutions comprise the banking industry with 88 scheduled

commercial banks, 29 private banks, 27 public banks and around 31 foreign banks.

Central bank Company:

Established in 1911, central bank of India was the first Indian commercial bank which

was wholly owned and managed by Indians. The establishment of the bank was the ultimate

realization of the dream of sir sorabji pochkhanawala, founder of the bank. Sir pherozesha

Mehta of the first chairmen of a truly swadeshi bank. He also added that central bank of

India lives on peoples faith and regards itself as the people own banks. During the past 98

years of history the bank has weathered many storms and faced many challenges. The bank

could successfully transform every threat into business opportunity and excelled over its

peers in the banking industry.

Indian bank Company:

The Indian bank was established on 15th august 1907 as part of the swadeshi

movement and also serving nation with team of over 22000 dedicated staff total business

crossed Rs.101274/- crores as on 31-03-2008. The Indian bank has 1593 branches spread all

over India.

In 1969 the bank was nationalized along with 13 other banks, today, Indian bank has a

network of 1385branches spread all over India. Indian bank has 229 overseas correspondent

banks in 69 countries. Indian bank is engaged in diversified banking activities & has 3

subsidiary companies to look products like artisan card, kisan bike scheme, yuva kisan vidya

nidhi yojana to meet diverse credit needs of farmers.

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TABLE NO.4.2

Banking Sector

Company

Name Price


Price

Growt

h in % Price

Growt

h in % Price

Growt

h in % Price

Growth

in %

Centralbank 144.75 139.5 3.62

199.25 37.65 182.4 26.01 134.7 -57.82

Indian bank 175.5 226.7 29.17282.8

5 61.16247.8

5 41.33 241 12.46

Banking Sector4.P2

5

40

60

80


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Interpretation:

The above table 4.2 explained about share price behavior of banking sector. It has two

companies which is central bank and Indian bank. The two companies analyzed 3 months

6months 9 months and 12 months of growth in % of both companies.

The above table reveals that central bank has increased by 3.62% in 3 months from

the date of listing where as Indian bank came down by 29.17% for the same period.

In 6 months period of time the Indian bank has increased by 37.65% where as central

bank increased by 118.43%.

In 9 months of a period it has increased 26.01% where as Indian bank has increasedby 41.22%.

In a period of one year the central bank has decreased by 6.94% where as Indian bank

is increased by 37.32%.

It concludes that comparison of 4 intervals the indian bank is better performance than

central bank.

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Pharma Sector:

The Indian pharmaceutical industry is one of the largest and most advanced among

the developing countries. A highly organized sector, the Indian pharma industry is estimated

to be worth $ 4.5 billion, growing about 8 to 9 percent annually. It ranks very high in the

third world, in terms of technology, quality and range of medicines manufactures. Indian

pharma industry playing a key role in promoting & sustaining development in the vital field

of medicines. It development in the past 53 years and helped to put India on the

pharmaceutical map of the world. The Indian pharmaceutical sector is highly fragmental with

more than 20,000 registered limits. It has expanded drastically in the last two decades. The

future of Indian pharmaceutical sector looks expanded positive. Several Indian

pharmaceutical companies have acquired companies in the Us & Europe & many others are

raising funds to do so.

Jyothi laboratories:

Jyothi laboratories came into being in 1983, powered by the vision of one man- M.P.

ramachandram the current chairman & Managing director, started as a proprietary concern;

the organization has grown to become a multi brand, multi-product company with operation

all over the nation. Today jyothi laboratories limited has a pan Indian presence with brands

catering to the needs of consumers across the length & breadth of the nation jyothi

laboratories limited has a come a long way to keep its tryst with the founding ideals untapped

markets, innovative products and cater to the common man.

Fortis Company:

Fortis health care limited, a New Delhi based healthcare company established by

Ranbaxy laboratories Ltd.,, it is one of the fastest growing healthcare companies of India with

its revenue showing a compound annual growth rate of 89% during the fiscal year 2002-03

and 2006-07. fortis healthcare was formed by the founders of Indias largest pharmaceuticals

company capacity of about 2,000 beds & heart command centers.

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TABLE NO.4.5

Pharma Sector

PICTURE4.P3

Company

Name Price


Price

Growt

h in % Price

Growt

h in % Price

Growt

h in % Price

Growth

in %

jyothi lab168.7

5256.

1 51.76291.

8 72.91 273.8 62.25207.

1 22.72

Fortis lab 179.9

154.

1 -14.34

162.

1 -9.89

150.0

5 -16.95

154.

9 -13.89

5

80

PRICE


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Interpretation:

The above table 4.3 explained about share price behavior of pharma sector. It has two

companies which is jyothi lab and fortis. The two companies analyzed 3 months 6 months 9

moths and 12 months of growth in % of both companies.

The above table resulting the jyothi lab is appreciated by 51.76% in 3 months where

as fortis is depreciated by -14.34%.

In 6 months of a period jyothi lab increased by 72.91% and fortis is decreased by

27.73%.

The above table reveals that jyothi lab has increased by 62.25% in 9 months where as

fortis decreased by 74.85%.

In a 12 months period jyothi lab is increased by 22.72% where as the fortis has

decreased by 13.89%.

It concludes that overall performance jyothi lab better than fortis.

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Power Sector Overview:

Electricity generation capacity with utilities in India had grows from 1713mw in

December 1950 to over 124,287mw by March 2006. However per capita electricity

consumption remains much lower than the world average and even lower than some of

developing Asian economies, investment in the sector has not been able to improve access

and keep pace with the countrys growing demand for electricity. As on march 2005, the

official statistics state that 85% of India 5,87,000 villages have been electrified. However, the

recent population census (2001) reveals that 44.2% of the households do not have access to

electricity. The India power sector (for the period of 2000-30), including generation,

refurbishment, transmission & distribution, such requirements reflect the foreseeable

economic growth in the year to come.

Power Grid Corporation of India Company

Power Grid Corporation of India Ltd. Operates as a principal electric power

transmission company in India. As of march 3, 2007 it owned and operated interstate and

inter regional electric power transmission system with 59,461 circuit kilometers of electrical

transmission lines and 104 electrical substations. It owns and operated a fibro tic cable

network of approximately 19,000 kilometers in 60 Indian cities. The company was

incorporated in 1989 as national power Transmission Corporation limited and changed its

name to power Grid Corporation of India of India ltd., in 1992. power grid corporation of

India is headquartered in gurgaon.

Power Finance Corporation Company:

Power financial corporation is a diversified and holding company that has interests,

directly or indirectly. In companies that are achieve in the financial services sector in Canada,

the united stated and Europe. It also has substantial holding in a diversified industrial group

based in Europe. Power financial corporation is a member of the power corporation of

Canada.

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TABLE NO.4.4

Power Sector

Company

Name Price


Price

Growt

h in % Price

Growt

h in % Price

Growt

h in % Price

Growth

in %

Power gridcorporation 106.65 103.2 -3.23 108.3 1.54 97.95 -8.15 104.3 -2.2

Power finance

corporation 260.4 298 14.43 354.1 35.98 306.9 17.85 230.9 -11.32

PICTURE 4.P4

5

30

40

ICE


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Interpretation:

The above table 4.4 explained about share price behavior of power sector. It has two

companies which is power grid and power finance corporations. It analyzed 3 months

6months 9months and 12months of growth in % of both companies.

The above table resulting that the power grid corporation price is decreased by -3.23%

in 3 months from the date of listing where as power finance corporation is came down

by 14.43%.

In 6 months period of time the power grid corporation has increased by 1.54% where

as power finance corporation increased by 35.98%.

In 9 months of a period power Grid Corporation is decreased by 8.15% where as the

power finance corporation is increased by 17.85%.

In 12 months of a period power Grid Corporation decreased by 2.20% where as the

power finance corporation decreased by -11.32%.

It concludes that the overall performance of power finance corporation better than

power grid corporation

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Computer&Software Sector:

The information technology industry has become of the most robust industries in theworld. The information technology association of America (ITAA) explains the information

technology as encompassing all possible aspects of information system based on computers.

It is a study, design, development, implementation, support or management of computer

based information system. Computer software is essentially a computer program encoded in

such a fashion that the program. The Indian information technology sector continues to be

one of the sunshine sectors of the Indian economy showing rapid growth and promise. The

industry continues to need bright people who went to take the iniative, whether it be in

developing new business processes. There are 100-120,000 IT businesses in the UK, most if

which are small with fewer than 5 employees. The gross value added (GVA) by the IT

Industry is circa 57,000 pound million per annum.

Omnitech Info Solution Company History

Company was incorporated on 30, 1990 as OMNITECH INFO BUSINESS

MACHINES PRIVAT LIMITED. Under the companies ACT, 1956. The name of companywas changed to OMNITECH INFO SOLUTIONS PRIVET LIMITED on April12, 2001.

Omnitech offers business availability services, business continuity services, systems

integration solutions and framework solutions and products Omnitech has a large client base

across the globe in different industry segments like BFSI (banking, financial services and

insurance). In 2007 the initial public offerings of Omnitech info solutions have got good

response in the market and have been subscribed by 61.84 times. Bids were got across the

price band of Rs.90-105 for Omnitech. The company had offered equity shares aggregating

Rs.35/- crores.

TCS:

A TCS means achieving real business results that allow you to transform and not just

maintain your operate our IT services business solutions and out sourcing bring you a level of

certainty that no other competitor can match you will experience requirement that are met on

time with budget and with high quality greater affiance and responsiveness to your businessand the ability to shift investment to strategic initiatives rather than tactical functions

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TABLE NO.4.5

Computer and Software

Company

Name Price


Price

Growt

h in % Price

Growt

h in % Price

Growt

h in % Price

Growth

in %

Omnitech 164.55 170.4 3.55 263.7 60.25 206.7 25.61 146.6 -10.9

TCS 807.75 731.35 -9.45 960.2 18.871159.5

5 43.55 1163.6 44.05

6

COMPUTER AND SOFTWARE

-20

-10

0

10

20

30

40

50

6070

1

3m 6m 9m 12m

PERIOD

PRICE


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Interpretation:

The above table 4.5 explained about share price behavior of computer and software

sector. It has two companies which is Omni tech and TCS. The two companies analyzed 3

months 6 months 9months and 12 months of growth in % of both companies.

The above table reveals that Omni tech info solution 3.55% has increased where as

TCS come down -9.45% for the same period.

In 6 months period of time Omni tech has increased by 60.25% where as TCS


In 9 months of a period Omni tech has increased 25.61% where as TCS is increased by

43.55%.

In a period of 12 months the Omni tech has decreased by 10.90% and the TCS has


It concludes that the overall performance of TCS better than omni tech

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CHAPTER 5

FINDINGS

&CONCLUSIONS

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FINDINGS

The Indian broking industry is one of the oldest trading industries that has been

around even before the establishment of the BSE in 1875.

The purpose of gaining a deeper understanding about the role of the Indian stock

broking industry in the countrys economy.

Started with an initial database of over 1,800 broking firms that were contacted, fromwhich 464 responses were received.

All the data for the study was collected through responses received directly from the

broking firms.

On the basis of geographical concentration, the west region has the maximum

representation of 52%. Around 24% firms are located in the north, 13% in the south

and 10% in the east.

3% firms stated broking operations before 1950, 65% between 1950-1995 and 32% .

Fundamental analysis is the study of economic factors industrial environment and

factors related to the company.

The state of economy determines the growth of gross domestic product and

investment opportunities.

An economy with favorable savings, investments, stable prices, and balance of

payments and infrastructure facilities provides a best environment for common stock

investment.

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The industrial growth follows a pattern, buying of shares beyond the pioneering stage

and selling of shares before the ideal for the investors.

The competitive edge of a company could be measures with the companys market

share, growth and stability of its annual sales.

The fundamental analysts estimate the intrinsic value and purchase them. When they

are undervalued.

They dispose the shares why they are over prices and earn profits.

The forecasts of supply and demand depend on various factors.

The technical analysis studies the behavior of the price of stock to determine the

future price of the stock.

Technical analysis has two parameters i.e., price and quality.

The technical analysts mainly focus the attention on the past history of prices.

Generally technical analysts choose to study two basic data price and volume.

Compared to fundamental analysts, technical analysts mainly predict the short term

price movement rather than long term movement.

The stock price movements are divided into three, the primary movement, the

secondary movement and the daily fluctuations.

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CONCLUSIONS

From the study of cement industry sector, the binani company is a well developed

industrial house with 136 year. Today group actively working in the core sector of

cement and zinc, due to this reason share price increase.

From the study of banking sector, the Indian bank share price increased to the

perfamance better than to the central bank..

Form the study of power sector, in the company of power finance corporation share

price increased due to the acceptance of the project investment in power sector.

Form the study of computer and software sector, in the TCS company share price

increased due to the acceptance outside the project.

Form the study of Pharma sector, in the jyothi lab company share price increased due

to the different segments of the product.

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BIBLIOGRAPHY

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Books:

Investment management V.K. Bhalla

Security analysis and port folio management fisher and Jordon.

Websites:

www.nseindia.com

www.moneycontrol.com

www.google.com

www.kellton.com

www.wikipedia.com

.
http://www.nseindia.com/http://www.moneycontrol.com/http://www.google.com/http://www.kellton.com/http://www.wikipedia.com/http://www.nseindia.com/http://www.moneycontrol.com/http://www.google.com/http://www.kellton.com/http://www.wikipedia.com/

share price orizinal project[1]

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