stock market final & new

INDUSTRY PROFILE

Stock MarketA stock market or equity market is a public entity. Stock market is a loose network of economic

transaction not a physical facility or discrete entity for the trading of company stock and

derivatives at an agreed price. These are securities listed on stock as well as those only traded

privately.

The size of the world stock market was estimated at about $36.6 trillion at the beginning of

October 2008.The total world derivatives market has been estimated at about $791 trillion face

or nominal value, 11 times the size of the entire world economy. The value of the derivatives

market, because it is stated in terms of notional values, cannot be directly compared to a stock or

a fixed income security, which traditionally refers to an actual value. Moreover, the vast majority

of derivatives 'cancel' each other out (i.e., a derivative 'bet' on an event occurring is offset by a

comparable derivative 'bet' on the event not occurring). Many such relatively illiquid securities

are valued as marked to model, rather than an actual market price.

The stocks are listed and traded on stock exchanges which are entities of a corporation or mutual

organization specialized in the business of bringing buyers and sellers of the organizations to a

listing of stocks and securities together.

Market Participants

Market participants include individual retail investors, institutional investors such as mutual

funds, banks, insurance companies and hedge funds, and also publicly traded corporations

trading in their own shares. Some studies have suggested that institutional investors and

corporations trading in their own shares generally receive higher risk-adjusted returns than retail

investors.

The rise of the institutional investor has brought with it some improvements in market

operations. There has been a gradual tendency for "fixed" (and exorbitant) fees being reduced for

all investors, partly from falling administration costs but also assisted by large institutions

challenging brokers' oligopolistic approach to setting standardized fees.

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The Bombay Stock Exchange

History

Established in 1875, the Bombay Stock Exchange is Asia's first stock exchange. In 12th century

France the courtiers de change was concerned with managing and regulating the debts of

agricultural communities on behalf of the banks. Because these men also traded with debts, they

could be called the first brokers. A common misbelief is that in late 13th

century Bruges commodity traders gathered inside the house of a man called Van der Beurze,

and in 1409 they became the "BrugseBeurse", institutionalizing what had been, until then, an

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http://en.wikipedia.org/wiki/File:Phiroze_Jeejeebhoy_Towers_Bombay_Stock_Exchange.jp

informal meeting, but actually, the family Van der Beurze had a building in Antwerp where

those gatherings occurred; the Van der Beurze had Antwerp, as most of the merchants of that

period, as their primary place for trading. The idea quickly spread around Flanders and

neighboring counties and "Beurzen" soon opened in Ghent and Rotterdam.

In the middle of the 13th century, Venetian bankers began to trade in government securities. In

1351 the Venetian government outlawed spreading rumors intended to lower the price of

government funds. Bankers in Pisa, Verona, Genoa and Florence also began trading in

government securities during the 14th century. This was only possible because these were

independent city states not ruled by a duke but a council of influential citizens. Italian companies

were also the first to issue shares. Companies in England and the Low Countries followed in the

16th century.

The Dutch East India Company (founded in 1602) was the first joint-stock company to get a

fixed capital stock and as a result, continuous trade in company stock occurred on the

Amsterdam Exchange. Soon thereafter, a lively trade in various derivatives, among which

options and repos, emerged on the Amsterdam market. Dutch traders also pioneered short - a

practice which was banned by the Dutch authorities as early as 1610.

There are now stock markets in virtually every developed and most developing economies, with

the world's largest markets being in the United States, United Kingdom, Japan, India,

China, Canada, Germany (Frankfurt Stock Exchange), France, South Korea and the Netherlands.

Function and purpose of stock market

The main trading room of the Tokyo, where trading is currently completed through computers.

The stock market is one of the most important sources for companies to raise money. This allows

businesses to be publicly traded, or raise additional financial capital for expansion by selling

shares of ownership of the company in a public market. The liquidity that an exchange affords

the investors gives them the ability to quickly and easily sell securities. This is an attractive

feature of investing in stocks, compared to other less liquid investments. Some companies

actively increase liquidity by trading in their own shares. History has shown that the price

of shares and other assets is an important part of the dynamics of economic activity, and can

influence or be an indicator of social mood. An economy where the stock market is on the rise is

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considered to be an up-and-coming economy. In fact, the stock market is often considered the

primary indicator of a country's economic strength and development.

Rising share prices, for instance, tend to be associated with increased business investment and

vice versa. Share prices also affect the wealth of households and their consumption.

Therefore, central banks tend to keep an eye on the control and behavior of the stock market and,

in general, on the smooth operation of financial system functions. Financial stability is the raison

d'être of central banks.

Exchanges also act as the clearinghouse for each transaction, meaning that they collect and

deliver the shares, and guarantee payment to the seller of a security. This eliminates the risk to an

individual buyer or seller that the counterparty could default on the transaction.

The smooth functioning of all these activities facilitates economic growth in that lower costs and

enterprise risks promote the production of goods and services as well as possibly employment. In

this way the financial system is assumed to contribute to increased prosperity.

Relation of the stock market to the modern financial system

The financial system in most western countries has undergone a remarkable transformation. One

feature of this development is disintermediation. A portion of the funds involved in saving and

financing, flows directly to the financial markets instead of being routed via the traditional bank

lending and deposit operations. The general public interest in investing in the stock market,

either directly or through mutual funds, has been an important component of this process.

Statistics show that in recent decades shares have made up an increasingly large proportion of

households' financial assets in many countries. In the 1970s, in Sweden, deposit accounts and

other very liquid assets with little risk made up almost 60 percent of households' financial

wealth, compared to less than 20 percent in the 2000s. The major part of this adjustment is

that financial portfolios have gone directly to shares but a good deal now takes the form of

various kinds of institutional investment for groups of individuals, e.g., pension funds, mutual

funds, hedge funds, insurance investment of premiums, etc.

The trend towards forms of saving with a higher risk has been accentuated by new rules for most

funds and insurance, permitting a higher proportion of shares to bonds. Similar tendencies are to

be found in other industrialized countries. In all developed economic systems, such as the

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European Union, the United States, Japan and other developed nations, the trend has been the

same: saving has moved away from traditional (government insured) bank deposits to more risky

securities of one sort or another.

Behavior of the stock market

From experience it is known that investors may 'temporarily' move financial prices away from

their long term aggregate price 'trends'. (Positive or up trends are referred to as bull markets;

negative or down trends are referred to as bear markets). Over-reactions may occur so that

excessive optimism (euphoria) may drive prices unduly high or excessive pessimism may drive

prices unduly low. Economists continue to debate whether financial markets are 'generally'

efficient.

According to one interpretation of the efficient-market hypothesis (EMH), only changes in

fundamental factors, such as the outlook for margins, profits or dividends, ought to affect share

prices beyond the short term, where random 'noise' in the system may prevail. (But this largely

theoretic academic viewpoint known as 'hard' EMH also predicts that little or no trading should

take place, contrary to fact, since prices are already at or near equilibrium, having priced in all

public knowledge.) The 'hard' efficient-market hypothesis is sorely tested and does not explain

the cause of events such as the stock market crash in 1987, when the Dow Jones

index plummeted 22.6 percent the largest-ever one-day fall in the United States.

This event demonstrated that share prices can fall dramatically even though, to this day, it is

impossible to fix a generally agreed upon definite cause: a thorough search failed to

detect any 'reasonable' development that might have accounted for the crash. (But note that such

events are predicted to occur strictly by chance, although very rarely.) It seems also to be the

case more generally that many price movements (beyond that which are predicted to occur

'randomly') are not occasioned by new information; a study of the fifty largest one-day share

price movements in the United States in the post-war period seems to confirm this.

Another phenomenon also from psychology that works against an objective assessment is group

thinking. As social animals, it is not easy to stick to an opinion that differs markedly from that of

a majority of the group. An example with which one may be familiar is the reluctance to enter a

restaurant that is empty; people generally prefer to have their opinion validated by those of

others in the group.

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COMPANY PROFILE

Introduction

An evolving, emerging & enterprising group with its roots in the financial services sector and

today expanding into newer horizons with great passion.

The vision of the group is to be leaders in businesses driven by customer satisfaction,

commitment to excellence and passion for continued value creation for all stakeholders. This

vision has helped us grow and build the trust of our customers and associates which is at the

cornerstone of everything we do. Trust is also at the heart of our success and the driver for

passion for our success.

Work Philosophy

Driven by passion, we continue to evolve and make the right product accessions and service

innovations in our offerings. Over the years, our passion has seen us grow from strength to

strength and expand rapidly, setting new benchmarks in the process. But to us, what really

matters the most is winning the trust of our customers.

Our Businesses

1) Asset Management

2) Real Estate

3) Insurance Broking

4) Global Wealth Advisory

Asset Management

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Ravi Investor has ventured in asset management business with his advisory services. The

Advisory Services is the idea to provide customers with solutions that give them the freedom

from active management of investments while having an assurance that we would be doing so in

the best possible manner. Our conviction, matched by our passion and expertise, is all about

ensuring the peace of mind of the investor. The PMS products currently offered are aimed at

meeting investor's need for successful long-term wealth creation by following strategies that

control risk and optimize returns in a mutual fund portfolio. The advisory Services leverages

upon with its rich experience in portfolio management with in-depth knowledge & expertise in

mutual funds. The decisions on the mutual fund portfolio also combine results of time tested

proprietary research models, extensive due-diligence of fund houses, interactions with fund

managers & internal risk controls. The defined processes and smart use of technology further

ensures that the investors are offered with quality portfolio management and administrative

services, ensuring a complete peace of mind.

Real Estate

The Ravi Investors offers an integrated service model offering end-to-end services to various

stake-holders in realty program management & execution. The idea is to associate with

stakeholders and engage actively in various stages of program management, viz. market survey,

and legal due diligence, land acquisition, planning & execution of projects and managing sales &

distribution through the company wealth advisory network. Managing realty programs is a

lengthy process replete with many challenges right from program identification to marketing. As

a developer, investor or land owner, one may be keen to execute realty projects, but may not be

equipped with the right skill-sets, contacts, experience and/or know-how for the undertaking.

This is where the company can associate and help in shaping up the realty programs.

Insurance Broking:

The insurance broking seeks to provide customers with comprehensive solutions catering to their

insurance needs. It is a strong vision for continued financial well-being for customers like

individuals & families, regardless of any circumstances. The company key to offer right advice

which is unbiased & customer centric & encompasses the right risk to insure, the right coverage,

the right product & at the right time. The idea to offer clients with comprehensive solutions

extends further to cover quality claim settlement & other services.

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Global Wealth Advisory:

Global wealth seeks to offer a Global Wealth Advisory platform to advisors for offshore funds

across the globe. The vision at Global Wealth Advisory platform is to offer a single window for

investment opportunities across the globe to customers. The idea is to bring to customers a wide

range of offshore fund schemes through advisors on the Global Wealth Advisory platform. The

company seeks to provide an offshore fund distribution platform & offshore Portfolio Advisory

services under a B2B distribution model. It also desires to offer comprehensive order routing and

trade settlement facility with support services of client reporting & fees settlement.

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THEORETICAL ASPECTS OF THE TOPIC

Currency Depreciation

Currency depreciation is the loss of value of a country's currency with respect to one or more

foreign reference currencies, typically in a floating exchange rate system. It is most often used

for the unofficial increase of the exchange rate due to market forces, though sometimes it appears

interchangeably with devaluation. Its opposite, an increase of value of a currency, is currency

appreciation.

The depreciation of a country's currency refers to a decrease in the value of that country's

currency.

For E.g.: when the Indian Rupee depreciates relative to US Dollar, the exchange rate of US

Dollar is rises, which takes more Indian Rupee to purchase 1 dollar

(1 INR = 55 US $ - 57 US $)

When the INR depreciates relative to US dollar, the Indian Rupee becomes more competitive

because the price of Indian goods when exchanged to US dollar will be cheaper leading to a

larger Indian exports. On the other hand, US Countries that denominated in dollars will thus

become more expensive in India.

The appreciation of a country's currency refers to an increase in the value of that country's

currency.

Continuing with the INR & US Dollar example: If the Indian Rupee appreciates relative to US

dollar the exchange rate falls. It takes fever Indian Rupee to purchase 1 dollar (1US dollar = 59

INR- 56 INR). When the Indian rupee appreciates to US dollar, the Indian Rupee will become

less competitive. This will leads to larger import of US products & services & lower export of

Indian goods & services.

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Let us see the depreciation or appreciation of Rupee on Indians living in India.

Here I am assuming that initially the exchange rate of US$ - INR is Rs: 55

Effects on importers If Rupee depreciates

(For e.g.: when US$ - INR moves from Rs: 55 to Rs: 60) If Rupee appreciates

(For e.g.: when US$ - INR moves from Rs: 55 to Rs: 52)

Imports become costly as for each US$ we have to pay Rs: 5 more & the imports of goods &

services will become more & more costly. Imports become cheaper as for each US$ we have

to pay Rs: 3 less & the imports of goods & services will be cheaper.

Exporters will have higher revenue. For export of each dollar the exporter will get Rs: 5 more.

The exporters will buy more goods & service & also he will earn more. Exporter will earn

lower revenue. For export of each dollar he will get Rs: 3 less. The exporters will buy fewer

goods & service & he will also earn less.

Indians who wish to go on Holidays Abroad For each dollar taken abroad for spending, the

traveller has to pay Rs: 5 more & thus his trip become costlier. For each dollar he intends to

take abroad for spending, the traveller has to pay Rs: 3 less & thus his trip will become cheaper

Reasons for Depreciation

1. Political Environment of the country

2. Retrospective taxation

3. Inability to pass any policy reforms & others clouds surrounding the Indian Economy.

4. Loss of confidence of investors

5. Money flowing out of Indian equities.

The major causes of depreciation are:

Withdrawals of FII’s

strengthening of dollar

weaker capital markets

Other capital flows

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Political uncertainty & corruption

Demand supply rule

Fiscal deficit

Oil Prices

Eurozone crises

Rise in gold prices

Impact of Rupee depreciation on Indians

Exporters are the biggest beneficiaries

NRIs become richer

Tourism industry will flourish as the holidays in India will get cheaper

Imports will become expensive

Oil prices will rises

Rise in inflation

Poor returns on FII’s

Difficulty in repayment of loans

Foreign education will become expensive

Foreign holidays will become expensive

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LITERATURE REVIEW

1) A study of influence of FII flows on Indian stock Market

BY: Anubha Shrivastav on GYANPRATHA – ACCMAN Journal of Management,

VOLUME 5, and Issue 1

Since Indian stock market is vast and attract investors as a hotspot of investment .The

Indian market is steadily growing and had allured domestic investor’s community and

foreign investors group in the past .the major part of investment in Indian market is

attributed to institutional investors among whom foreign investors are of primary

importance. One eminent concern in the matter is whether these foreign investors (FII)

direct the Indian stock market .This paper examines whether market movement can be

explained by these investors and their impact on the stock markets. FII, because of its

short-term nature, can have bidirectional causation with the returns of other domestic

financial markets such as money markets, stock markets, and foreign exchange markets.

Hence, understanding the determinants of FII is very important for any emerging

economy as FII exerts a larger impact on the domestic financial markets in the short run

and a real impact in the long run. The present paper is an attempt to find out determinants

of foreign institutional investment in India, a country that opened its economy to foreign

capital following a foreign exchange crisis. The objective of the study is to find out

whether there exist relationship between FII and Indian stock market.

2) Determinants of Exchange rate in India

BY: Mita H. Suthar, H.L. Institute of Commerce April 21, 2008

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Appreciation or depreciation of the domestic currency depends on the supply of foreign

exchange reserves, liquidity conditions in the economy as determined by money supply,

central bank's policy intentions and differences in the interest yield on dated securities of

the concerned economies. The present research tests validity of this hypothesis in

association with the exchange rate between the Indian rupee and the US dollar. In

particular, an attempt is made to investigate the impact of bank rate policy of the Reserve

Bank of India (RBI) and interest yield differentials between the India and the US

securities. Impact of broad money supply and foreign exchange reserves is also analyzed.

A monthly time series from April 1996 to June 2007 is used for the purpose. It is

observed that the monetary policy intentions depicted by the bank rate of the RBI, the

short-term and long-term domestic interest differentials and interest yield differentials,

and the rate of change of foreign exchange reserves have a significant impact on the

monthly average of the exchange rate between Indian rupee and the US dollar and quite

in line with the economic theory.

3) Determinants of Foreign Institutional Investors Investment in India

By: Manjinder KAUR, Sharanjit S. DHILLON

The present study aims at exploring the determinants of Foreign Institutional Investors’

(FIIs) investment in India. Returns on Indian stock market have positive Impact whereas

US stock market returns have no significant influence on FIIs Investment to India. Stock

market risk has negative influence on FIIs inflows to India. Market capitalization and

stock market turnover of India have significant Positive influence only in short-run.

Among macroeconomic determinants, economic Growth of India has positive impact on

FIIs investment both in long-run and short run. But all other macroeconomic factors have

significant influence only in long-run like inflation in US has positive influence whereas

inflation in India has negative Influence on FIIs investment. Further, US interest rate has

adverse impact on FIIs Investment while liberalization policies of India exhibited

significant contribution to FIIs inflows. Study concludes that FIIs inflows in India are

determined by both stock Market characteristics and macroeconomic factors.

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RESEARCH METHODOLOGY

About the Topic:

My topic of SIP is Impact of Rupee Depreciation on Indian Stock Market.

Objective of Study:

The topic of my study was to find out the impact what happens to Indian stock market when the

rupee depreciates. This will help me to identify what is the real effect happens to Indian Stock

market when the rupee falls. Use of the correlation & Regression technique to find out what is

the impact on the stock market when rupee depreciates.

Importance of Study:

1. The importance of the study will help me to find out what problems will create to the

working of the Indian Companies when the Rupee depreciates.

2. The study will help to know the current position of the companies working.

3. It will help to know how the company will operate in the future as due to continuously

decreasing of rupee & how the company will carry on their business in the future, so that

the company can overcome from the effect of Rupee depreciation.

Benefit of the study:

1. The benefit from the study will be identifying what effect creates on the working of the

company when the rupee depreciates.

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2. It helps me to see & identify the performance of the company of last 4 & 5 years as the

rupee depreciates.

3. It will give a better idea that whether the company efficiency or performance is decreased

or gone up as the rupee depreciates.

4. It will also help me to identify the impact it creates to the stock market when the rupee

depreciates.

5. It will also help me to find out whether there is a positive relation or negative relation to

the Sensex when the rupee depreciates.

6. It will also help me to find out how the rupee depreciates effect on the top 30 companies

in terms of market capital will affect who are doing business nationally or internationally.

7. The data is taken on daily basis which will give more accurate performance of the

exchange rate correlation & the companies.

Research Design

My research design use for this project is “Exploratory Research Design”. The reason for

choosing the exploratory research design is that my topic is “impact of rupee depreciation on

Indian stock market. Here on this topic I am already explaining the problem that when the rupee

depreciates there is problem which occurs to the Indian stock market.

Data Collection Technique:

The data which will be used to do my study will be secondary data. Secondary data will be used

in the sense that it will see the last 5 years price of exchange rate of INR v/s US Dollar, British

Pound, Japanese Yen, and European Euro. To know the impact of rupee depreciation the Karl

Pearson coefficient correlation & Regression analysis have been used. It would show that

whether the impact is positive or negative and how much the Indian Stock market would vary

with respect to FII. For the Purpose of Calculation MS –Excel software have been utilized. Here

also the company financials report will be seen to know that the impact on the performance of

the companies in the stock market when rupee depreciates

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Sample Design:

The sample design will be of 30 companies who are listed on the Sensex. And also the exchange

rate price of G5 countries to identify & know the impact on the Indian stock market.

Data Collection Tools:

1. Exchange Rate Data of last 4-5 years

2. BSE Sensex data of last 4-5 years

3. Correlation Analysis of the companies with the exchange rate

4. Regression analysis to find the impact of Exchange rate with BSE Sensex

Limitations of the study:

The project has been prepared in two months, so due to time limitation depth analysis of

such a wide concept may contain some lacuna. In this report impact of rupee depreciation

on the stock market has been analyzed considering only BSE Sensex. But only this

cannot depict exact picture or impact of the stock market.

The secondary data that I have used in this study may not give true picture of the concern.

Adequate data is not available for study.

Only Correlation and Regression analysis of Exchange rate & BSE Sensex has been

taken which might not give the real impact on it.

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ANALYSIS OF DATA

Rupee Depreciation effect on Indian Stock Market

Now let see the effect of the G5 countries in the Indian Stock Market. The G5 countries which I

have taken are:

Name of the Country Currency

United States of America US Dollar

Germany European Euro

Japan Japanese Yen

France European Euro

United Kingdom British Pound

Of the currency exchange rate for 5 years and along with the daily price of Sensex.

The correlation & Regression Analysis of Exchange rate of 5 countries with the BSE Sensex

is given below:

Correlation With SensexUS Dollar -0.034539978British Pound -0.05294473European Euro -0.122415562Japanese Yen 0.307330171

The above table shows that there is a negative correlation of the BSE Sensex with the US Dollar,

British Pound & European Euro and there is a positive correlation of BSE Sensex with Japanese

Yen of 30%.

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Regression Analysis of Exchange rate with BSE Sensex

US Dollar regression analysis with BSE Sensex

H0: there is a significant correlation between the US Dollar exchange rate & BSE Sensex

H1: There is no significant correlation between the US Dollar exchange rate & BSE

Sensex

ANOVAdf SS MS F Significance F

Regression 1 12784095.92 12784096 1.576965 0.209442455Residual 1202 9744340520 8106772Total 1203 9757124616

CoefficientsStandard

Error t Stat P-value Lower 95% Upper 95%Lower 95.0%

Upper 95.0%

Intercept 17509.9379 951.194 18.41 7E-67 15643.75 19376.1 15643.75 1937654.7773 -25.03898913 19.9391 -1.256 0.209 -64.15832 14.0803 -64.15832 14.08

The adjusted R- square comes to 0.04% which shows that there is no significant correlation

between the exchange rate & the BSE Sensex.

British Pound regression analysis with BSE Sensex

H0: There is a significant correlation between the British Pound exchange rate & the BSE

Sensex

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Regression StatisticsMultiple R 0.036197126R Square 0.001310232Adjusted R Square 0.000479375Standard Error 2847.239449Observations 1204

H1: there is no significant correlation between the British Pound exchange rate & the

BSE Sensex



Regression 1 29297097 29297097 3.620039 0.0573263Residual 1202 9727827519 8093035Total 1203 9757124616



Upper 95.0%

Intercept 18374 1082.52915 16.9729 4.38E-58 16249.799 20497.51 16249.8 20497.5188.5092 -26.597 13.9792593 -1.90264 0.057326 -54.02396 0.828965 -54.024 0.828965

The Adjusted R- square comes to 0.21% which shows that there is no significant correlation

between the British Pound exchange rate & BSE Sensex.

Regression Analysis of European Euro V/S BSE Sensex

H0: There is a significant correlation between the European Euro exchange rate and the

BSE Sensex

H1: There is not a significant correlation between the European Euro exchange rate & the

BSE Sensex

Regression Statistics

Multiple R 0.124375718R Square 0.015469319Adjusted R Square 0.014650242Standard Error 2826.983797Observations 1204

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Regression 1 150936074.5 150936075 18.88628 1.5E-05Residual 1202 9606188542 7991837.4Total 1203 9757124616



Upper 95.0%

Intercept 22362 1392.81 16.0556 1.05E-52 19629.85958 25095.08 19629.86 25095.0872.2605 -92.912 21.3795 -4.34583 1.5E-05 -134.8570202 -50.9665 -134.857 -50.9665

The Adjusted R – Square find out is 1.465% which proves that there is no significant correlation

with the exchange rate of European Euro & BSE Sensex.

Regression Analysis with the Japanese Yen & BSE Sensex

H0: There is a significant relation with the Japanese Yen exchange rate & BSE Sensex

H1: There is no significant relation with the Japanese Yen exchange rate & BSE Sensex



Regression 1 917745009.6 9.18E+08 124.7972 1.23E-27Residual 1202 8839379607 7353893Total 1203 9757124616

Coefficients Standard Error t Stat P-value Lower Upper 95% Lower Upper

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95% 95.0% 95.0%Intercept 11085.9 475.0018283 23.339 1E-99 10153.93 12017.78 10153.93 12017.78

63.66 96.2204 8.613202598 11.171 1.2E-27 79.32179 113.119 79.32179 113.119

The Adjusted R-Square comes to 9.33% which shows that there is little correlation between the

exchange rate of Japanese Yen & the BSE Sensex of

The Factors which leads to moving of the Sensex price is:

1) The inflow and outflow of the Foreign Institutional Investor on Equity and Debt

2) The working of the top 30 companies on the Sensex

1) The inflow & outflow of FII:

Foreign Institutional Investor means an investor or investment fund that is from or

registered in a country outside of the one in which it is currently investing. Institutional

investors include hedge funds, insurance companies, pension funds and mutual funds.

Year FII Equity (Rs: in Crore) FII Outflow (Rs: in Crore)

2008-09 -47706.2 -1895.2

2009-10 11021.88 32437.7

2010-11 700759.5 36317.3

2011-12 54570.9 49987.9

2012-13 139408.1 21745.8

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2008-09 2009-10 2010-11 2011-12 2012-13-100000

0

100000

200000

300000

400000

500000

600000

700000

800000

11021.88

700759.5

54570.9

139408.1

-1895.2

32437.7 36317.3 49987.9 21745.8

FII EquityFII Debt

From the diagram it is clear that in year 2008-09 the outflow was very high and the

inflow is very low as comparing to the others year’s data of inflow and outflow of FII.

The year 2008-09 was a year where the biggest recession came on January 21, 2008

where the America’s biggest bank of Lehman Brothers was felt bankrupt which a major

panic is broke out on the interbank loan market. Due to this recession in the USA which

leads to Investors to withdraw their money which they have invested in the Indian Stock

market to fight & survive on this panic recession of year 2008. After wards in the later

years the US economy was come on the path of stabilizing then the again in the later

years the FII again started on investing in the Indian Stock Market. This can be see that in

the above chart that in the year in FII equity there is a huge inflow & less outflow. This

trend is continuously we can see that inflow is increases in the Indian stock market &

outflow is decreases from the Indian stock market.

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Thus the above diagram tells us that there is a huge inflow of FII & less outflow of FII

which leads to increase the daily price of Sensex index.

2. The top 30 companies working in the Sensex

A) Bajaj Auto

Let us see the Bajaj Company working performance, so that whether there is a positive

impact or negative impact in the working of the company.

EPS: EPS stand for Earning per Share it is a portion of a company’s profit which

is allocated to each outstanding share of common stock.

Year Earnings Per Share

2008-09 37

2009-10 55.2

2010-11 119.4

2011-12 105.2

2008-09 2009-10 2010-11 2011-120

20

40

60

80

100

120

37

55.2

119.4

105.2

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It explains that the company faster its earnings & it grows very fast, & it also

helps to faster its stock price increases & it can go higher on its working. As from

the graph we can easily see that in the year 2008-09 the company EPS was Rs: 37

but afterwards its gone on increase only till 2010-11 where its reached to 119.4

but again in the year 2011-12 it falls to 105.2 but again the companies earning per

share is gone increasing only.

Company Performance with the Exchange rate:

Correlation with Bajaj AutoUS $ 0.53785441Pound 0.196639423Euro 0.252496986Yen 0.832873594

From the graph it is found that there is positive correlation or the impact on the

exchange rate performance with the company share price. It is found that with

US$ there is a 53% impact on the performance of the company. While there is a

19% impact of pound into company performance & 25% performance of impact

in Euro & maximum impact of 83% of Yen to the working of the company.

ROCE: Return on Capital Employed is used to prove the value the business gains

from its assets & liabilities.

24

2008-09 2009-10 2010-11 2011-12ROCE 31.06 61.15 68.39 67.2

2008-09 2009-10 2010-11 2011-120

10

20

30

40

50

60

70

80

31.06

61.15

68.39 67.2

ROCE

ROCE

ROCE explained that how much return company gets on its capital employed.

While we see the graph the ROCE of the company is continuously going on

increase only. This shows that company is getting higher return on the capital

employed.

FII Inflow & Outflow: The FII inflow will be seen from the share holding

pattern of the company of the last 5 years.

From the

chart we

come to

know that

the FII

investment on the company capital is continuously going increasing only. This chart will help us

to know that the company inflow on FII is high & there is a less outflow of the FII.

B). Tata Consultancy Service: Let us see the TCS working performance

EPS:TCS last 4 years EPS

25

Bajaj Auto LTD 2008-09 2009-10 2010-11 2011-12

Promoters 60.89% 60.89% 60.33% 60.61%

GDRS 0.13% 0.13% 0.08% 0.06%

FII 13.81% 13.81% 15.99% 16.42%

Public Financial institutions 5.75% 5.75% 2.76% 3.21%

Mutual funds 3.41% 3.41% 2.61% 2.52%

Nationalized & other banks 0.08% 0.08% 0.18% 0.04%

NRI & OCBs 0.45% 0.45% 0.46% 0.41%

others 15.48% 15.48% 17.59% 16.73%

2008-09 2009-10 2010-11 2011-12

EP

S 26.81 35.67 46.27 53.07

2008-092009-10

2010-112011-12

0

10

20

30

40

50

60

26.8135.67

46.2753.07

EPS

EPS

By looking to the chart we can find out that company is continuously is going up which means

company earnings per share is high.

Company Performance with the exchange rate

This shows that there is a positive correlation of the exchange rate with the working of the

company. Maximum effect of the company is seen with the exchange rate is of Yen which tells

that there is an 89% of impact of Yen on the performance of the company.

26

Correlation with TCSUS $ 0.687277272Pound 0.014125214Euro 0.273329375Yen 0.89578951

FII inflow & outflow on the company share holding pattern

Tata Consultancy Service 2008-09 2009-10 2010-11 2011-12

Promoters Holding 76.21% 74.13% 74.05% 73.98%

Insurance companies 5.28% 5.51% 5.68% 5.41%

Indian Public & others 5.04% 4.77% 4.50% 4.23%

Mutual Fund & UTI 2.47% 2.32% 2.39% 1.77%

Corporate bodies 0.77% 0.71% 0.60% 0.47%

Banks. FI, STATE & CENTRAL

GOVT. 0.11% 0.02% 0.04% 0.02%

FII 10% 12.43% 12.64% 14.02%

NRI/OCB/Foreign Nationals 0.12% 0.11% 0.10% 0.10%

Promoter

s Holding

Insuranc

e compan

ies

Indian P

ublic &

others

Mutual Fund

& UTI

Corporate

bodies

Banks. F

I, STATE & CENTRAL GOVT.

FII

NRI/OCB/Foreign N

ationals

0.00%

20.00%

40.00%

60.00%

80.00%

2008-092009-102010-112011-12

27

From the above chart it’s clear that the company is getting more & more FII & there

percentage of FII is increasing in each year.

ROCE:

2008-09 2009-10 2010-11 2011-120

10

20

30

40

50

60

43.27 42.46 44.38

55.31

ROCE

ROCE

Now from the chart we can see that company ROCE is continuously ups & down but its

giving a good return to the company.

C) Tata Steel

EPS:

From the graph it is clearly seen that the EPS in year 2009-10 is reduced as compared to

2008-09 but in the year 2010-11 which found to be the good year for the company where

the EPS gone up to 99.03 from 60-26 but in the next two years 2011-12 & 2012-13 the

EPS was gone down it comes to 52.13 in 2012-13.

ROCE:

28

2008-09 2009-10 2010-11 2011-12

ROCE 43.27 42.46 44.38 55.31

EP

S 2008-09 2009-10 2010-11 2011-12

69.45 60.26 99.03 54.28

2008-09 2009-10 2010-11 2011-12

ROCE 15.01 13.06 13.48 15.03

2008-09 2009-10 2010-11 2011-1212

12.5

13

13.5

14

14.5

15

15.5 15.01

13.06

13.48

15.03

ROCE

From the chart we can see that the company ROCE was 15.01 which remarkably reduced

for the next two year comes to 13.48 & then in 2011-12 it goes up to 15.03 & again in

2012-13 it comes down to 12.8 which is very less as compared to all the 4 years. This is

due to company has to produced steel for which they required more or more units of raw

material to import which makes the company to pay more because of depreciating Rupee.

FII inflow & outflow from share holding pattern

2008-09 2009-10 2010-11 2011-12

Promoters 40.86% 36.12% 30.60% 31.25%

FII 13.19% 18.80% 17.36% 14.36%

MF/UTI 11.69% 8.01% 10.89% 10.02%

29

Individuals 15.02% 18.37% 20.51% 21.06%

state & central govt. 0.09% 0.09% 0.08% 0.08%

Bodies corporate 2.20% 2.10% 2.90% 2.49%

CDRs 2.15% 1.90% 2.15% 1.24%

insurance companies 14.00% 14% 15% 19.00%

FI/ Banks 0.80% 0.61% 0.51% 0.50%

Promoters FII

MF/UTI

Individuals

state &

centra

l govt.

Bodies co

rporate CDRs

insurance c

ompaniesFI/

Banks0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

2008-092009-102010-112011-122012-13

By looking to the diagram we can found out that the FII investment in Tata Steel is continuously

reducing & the foreign investment is continuously reduced in Tata Steel Company.

Company Share Performance with the Exchange rate:

Correlation with Tata SteelUS $ 0.143057003Pound -0.605291252Euro -0.203007961Yen 0.146838668

30

Here while finding the correlation with the exchange rate & company it is found that there is a

positive correlation with the US $ & Japanese Yen at 14%. This shows that there is not much

heavy effect on the performance of the company when rupee depreciates. But when we see the

correlation of the company with the Pound & Euro there is a negative correlation, it tells that

when the rupee depreciates the performance of the company goes up.

D) Wipro

EPS

2008-09 2009-10 2010-11 2011-120

5

10

15

20

25

30

35

26.81

31.78

21.72 22.88

EPS

EPS

We can see from the chart that EPD in 2009-10 increased but in the year 2010-11 it is reduced &

come down to 22.88 from 31.78 in year 2011-12.

FII inflow or outflow from share holding pattern

Wipro LTD 2008-09 2009-10 2010-11 2011-12

Promoters 79.32% 79.52% 79.28% 78.41%

mutual funds/ UTI 0.68% 0.63% 1.04% 2.03%

31

2008-09 2009-10 2010-11 2011-12

EPS 26.81 31.78 21.72 22.88

FI/Banks 0.07% 0.10% 1.62% 0.02%

insurance companies 1.26% 1.04% 1.05% 1.36%

FII 5.91% 7.23% 5.38% 6.67%

corporate bodies 3.41% 2.88% 2.99% 2.82%

Individual 6.20% 5.49% 5.44% 5.33%

NRI 1.02% 0.95% 0.94% 0.95%

trust Wipro 0.51% 0.60% 0.58% 0.70%

DR Issued 1.62% 1.56% 1.68% 1.71%

Promoters

mutual funds/

UTI

FI/Ban

ks

insurance

companies FII

corporate b

odies

Individual NRI

trust w

ipro

share hold by c

ustodian

& again

st DR iss

ued

0.00%10.00%20.00%30.00%40.00%50.00%60.00%70.00%80.00%

2008-092009-102010-112011-12

We can see from the chart that in Wipro LTD, the FII investment is continuously going on

increase only. There is no continues increase which means that FII inflow in the Wipro LTD is

high rather than FII outflow.

ROCE:

2008-09 2009-10 2010-11 2011-12

ROCE 26.77 23.06 22.34 21.41

32

2008-09 2009-10 2010-11 2011-120

5

10

15

20

25

30

26.7723.06 22.34 21.41

ROCE

ROCE

We can see from the chart that the company performance on ROCE is continuously

reducing from 2008-09 till 2011-12. The company performance is going downward only.

Company Performance with the Exchange rate

There is a positive correlation of the company performance with the exchange rate of US$, Euro

& Yen, this tells that when the rupee depreciates the company performance on the stock market

also depreciates. While there is a negative correlation of the company with the British Pound,

this tells that when the rupee depreciates the company performance on stock exchange also

increases.

E) Reliance Industries:

EPS

2008-09 2009-10 2010-11 2011-12

EPS 54.11 82.29 64.75 66.15

33

Correlation with WiproUS $ 0.420607289Pound -0.272352899Euro 0.040477673Yen 0.688006745

2008-09 2009-10 2010-11 2011-120

10

20

30

40

50

60

70

80

90

54.11

82.29

64.75 66.15

EPS

EPS

You can see that the EPS is gone up to 82.29 Rs in 2009-10 as compared to 2008-09.

While in the next 3 years the company EPS is increasing but in a downward trend.

ROCE:

2008-09 2009-10 2010-11 2011-12

ROCE 10.93 10.75 11.14 10.83

2008-092009-10

2010-112011-12

10.5

10.6

10.7

10.8

10.9

11

11.1

11.2

10.93

10.75

11.14

10.83

ROCE

We can see from the diagram that the ROCE is going upwards & downwards. There is no

stable pattern on its ROCE.

FII inflow & outflow pattern

2008-09 2009-10 2010-11 2011-12 2012-13

Promoter 44.73% 44.74% 44.72% 44.75% 45.34%

MF/UTI 2.28% 2.02% 2.59% 2.60% 2%

34

FI/Banks 0.26% 0.30% 0.23% 0.13% 0.13%

Central govt.& state govt. 0.10% 0.15% 0.10% 0.10% 0.10%

Insurance companies 7.81% 7.86% 7.87% 7.88% 8.77%

FII 17.62% 16.78% 17.70% 17.55% 17.76%

Corporate bodies 4.69% 4.97% 4.33% 5.25% 4.65%

Individuals 12.58% 13.01% 12.47% 12.01% 11.41%

NRI/OCB 0.74% 0.76% 0.73% 0.70% 0.67%

Any others 6.07% 6.07% 6.07% 5.93% 5.54%

clearing members 0.07% 0.14% 0.09% 0.10% 0.10%

CADR 3.05% 3.20% 3.10% 3.00% 3.53%

Promoter

MF/UTI

FI/Ban

ks

Centra

l govt &

state

govt

Insurance

companies FII

Corporate b

odies

Individuals

NRI/OCB

Any others

cleari

ng mem

bers CADR0.00%5.00%

10.00%15.00%20.00%25.00%30.00%35.00%40.00%45.00%50.00%

2008-092009-102010-112011-122012-13

We can see that in Reliance Industries FII inflow is continuously in a stable position. The FII is

stuck with a same position in each year.

Company Performance with exchange rate:

Correlation with RelianceUS $ 0.431359698Pound -0.288133249

35

Euro 0.198812553Yen 0.449861411

There is a positive correlation with the exchange rate of Dollar, Euro & Yen at 43%, 19% &

44%. This means that when the rupee depreciates on this exchange rate the performance of the

company on the Sensex also decreases while there is negative of relation of the company with

the British Pound of 28% which shows that when rupee depreciates the company performance on

Sensex goes up.

E) HDFC Bank:

EPS:

2008-092009-10

2010-112011-12

0102030405060708090

52.95

68.82

86.45

22.45

EPS

EPS

We can see from the chart that the EPS is in one year going up & another year going down.

HDFC Bank Performance with the exchange rate:

36

2008-09 2009-10 2010-11 2011-12

EPS 52.95 68.82 86.45 22.45

Correlation with HDFC BankUS $ 0.667758363Pound 0.005367191Euro 0.248634287Yen 0.832923412

There is a positive correlation of HDFC Bank with the exchange rate. But when the correlation

found of HDFC Bank with the Pound there is almost a 0.5% correlation which shows that there

is a no correlation between the HDFC Bank performances with the pound exchange rate.

FII inflow & outflow in HDFC Bank shares

Promoter

& Pro

moter G

roup

MF/

UTI

FI/Ban

ks

Insura

nce co

mpanies

FII

corp

orate

bodies

Individual

CADRs

NRI/OCB

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

2008-092009-102010-112011-12

We can see from the chart that in HDFC the FII data is continuously increasing in all the years.

This shows though there is rupee depreciation is more but the FII investor will have confidence

that the share will work positively & due to this the FII investment is continuously going up.

37

share holding pattern 2008-09 2009-10 2010-11 2011-12

Promoter & Promoter Group 24.65% 23.25% 23.06% 22.83%

MF/UTI 4.50% 4.68% 4.44% 3.86%

FI/Banks 0.06% 0.07% 0.01% 0.03%


FII 28.14% 29.14% 31.13% 34.07%

corporate bodies 7.80% 8.72% 8.60% 8.19%

Individual 10.30% 9.13% 8.72% 8.69%

CADRs 17.30% 17.44% 17.23% 17.08%

NRI/OCB 0.93% 1.21% 0.61% 0.55%

F) Tata Power


Share Holding Pattern 2008-09 2009-10 2010-11 2011-12

Promoters Group 33.26% 31.22% 31.81% 31.81%

Mutual Fund / UTI 6.88% 7.40% 4.36% 3.33%

Financial institutions/ banks 0.17% 0.29% 0.24% 0.40%

Central & state govt. 0.06% 0.05% 0.04% 0.03%

insurance companies 22.23% 22.06% 24.04% 22.80%

FII 18.53% 17.92% 19.83% 21.87%

Individuals 17.78% 15.97% 15.34% 15.41%


trust 0.02% 0.05% 0.11% 0.15%

foreign bodies 0.10% 0.47% 0.11% 0.02%

CADRs 0.10% 3.89% 3.51% 3.23%

Promoters G

roup

Mutual Fund / U

TI

Finan

cial in

stitutions/ banks

Centra

l & sta

te go

vt

insurance

companies FII

Individuls

Bodeis co

rporate

trust

foreign

bodiesCADRs

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

2008-092009-102010-112011-12

We can see from the graph that the FII inflow is continuously going to increase only, due to the

rupee depreciation still the Investor are keen to more & more on this share.

EPS:

38

EPS 2008-09 2009-10 2010-11 2011-12

57.09 85.01 8.79 -4.98

2008-09 2009-10 2010-11 2011-12-10

0

10

20

30

40

50

60

70

80

90

57.09

85.01

8.79

Well the Company EPS has been drastically reduced in the year 2010-11 & 2011-12 from the

year 2009-10. It shows the company performance on earnings per share is reducing. The reason

for the EPS going down because in year 2011-12 the company PAT was (968.29 Cr.) Due to this

reason the company EPS was gone down.

ROCE:

2008-09 2009-10 2010-11 2011-12ROCE 15% 13% 10% 9.29%

39

2008-09 2009-10 2010-11 2011-120%

2%

4%

6%

8%

10%

12%

14%

16% 15%13%

10%9%

Return on Capital Employed

Return on Capital Employed

We can see from the chart that the company ROCE is continuously going on decreasing

only. In every year the company ROCE is getting down which shows that company

return on capital is very less.

Tata Power performance with the exchange rate:

Correlation with Tata PowerUS $ 0.556982947Pound 0.355583949Euro 0.425423958Yen 0.781092659

There is a positive correlation of the company performance with the stock exchange. This shows

that when the company rupee depreciates on this exchange the company performance on the

stock exchange goes up.

G) Sterlite Industries

EPS

40

2008-09 2009-10 2010-11 2011-12

EPS 49.96 46.79 15 14.36

\

2008-092009-10

2010-112011-12

05

101520253035404550

49.9646.79

1514.36

EPS

EPS

We can see from the chart the company performance in terms of EPS is continuously growing

down. The company has a downward trend in the EPS.

ROCE

2008-09 2009-10 2010-11 2011-12ROCE 28% 22% 16% 16%

2008-09 2009-10 2010-11 2011-120%

5%

10%

15%

20%

25%

30% 28%

22%

16% 16%

ROCE

ROCE

We can see from the chart that the company ROCE is going downward in the year 2009-10 as

compared to 2008-09. And in the year 2010-11 & 2011-12 company able to maintain the ROCE

at 16%.

41

FII Pattern

Sterlite Industries 2008-09 2009-10 2010-11 2011-12

Promoters 61.19% 52.07% 57.72% 53.31%

Bank & Financial Institutions 4.82% 4.21% 5.14% 5.65%

FII 8.60% 14.29% 13.23% 11.92%

Mutual Fund 3.53% 3.75% 3.50% 3.82%

Private corporate bodies 3.80% 5.04% 5.72% 5.63%

Indian Public 4.08% 3.15% 3.91% 4.36%

NRI/OCBs 0.29% 0.11% 0.16% 0.18%

Share hold by custodian with DR issued 10.68% 14.87% 8.08% 12.45%

clearing members 0.50% 0.11% 0.08% 0.29%

trust 2.51% 2.12% 2.14% 2.15%

Foreign Bodies - DR _____ 0.28% 0.33% 0.24%

Promoters

Bank &

Finan

cial In

stitutions FII

Mutual Fund

Private

corporat

e bodies

Indian Public

NRI/OCBs

Share

hold by custo

dian with

DR issued

cleari

ng mem

bers trust

Foreign

Bodies - D

R

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

2008-092009-102010-112011-12

Now we can see from the chart that the company investment in FII is continuously going

downward because the FII pattern is completely going down on every year.

42

Company Performance with the exchange rate:

Correlation with Sterlite IndustriesUS $ -0.644326353Pound -0.426720217Euro 0.675836038Yen -0.495469074

There is a negative relation of the company performance with the US Dollar, Pound & Yen. This

shows that when the rupee depreciates the company performance on the stock exchange goes up.

But when we see the correlation of company performance with the European Euro there is a

positive correlation it shows that when rupee depreciates again Euro the company performance

also depreciates.

H) Infosys:

FII Inflow & Outflow

Infosys 2008-09 2009-10 2010-11 2011-12

Promoters 16.49% 16.04% 16.04% 16.04%

Mutual funds 3.58% 4.02% 4.60% 4.69%

Banks, FI & Insurance Co. 4.16% 3.91% 4.40% 11.87%

FII 34.86% 36.36% 36.12% 39.02%


Indian Public 16.89% 14.33% 13.18% 12.97%

NRIs/OCB/Foreign nationals 0.89% 0.81% 0.86% 0.88%

trusts 0.49% 0.50% 0.50% 0.52%

equity share underlying ADS 19.13% 18.63% 17.60% 13.47%

43

Promoter

s

Mutu

al fu

nds

Banks

, FI &

Insu

rance

Co.FII

Private

corp

orate

bodies

Indian Public

NRIs/OCB/F

oreign

nationals

trusts

equity

shar

e under

lying A

DS0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

2008-092009-102010-112011-12

We can see from the chart that the company FII invest is continuously going up which

means that in a company FII inflow is very high & the company outflow is very low.

EPS

2008-092009-10

2010-112011-12

0

20

40

60

80

100

120

140

160

104.6 108.99 119.66

145.83

EPS

EPS

Here also we can see that the company has being continuously is gone on increasing on

its Earnings per Share. As there is a rupee depreciates the company is continuously grow

up on its Earnings per share.

ROCE

We can see from the chart that

the company ROCE is continuously decreasing in spite of its performance on EPS, the

company is come down.

Infosys share performance with the exchange rate:

Correlation with Infosys

44

2008-09 2009-10 2010-11 2011-12

ROCE 40.25 34.1 35.74 37.18

US $ 0.197762266Pound -0.314602934Euro -0.088218995Yen 0.536437126

There is a positive correlation of company performance with the US $ & Japanese Yen Exchange

rate at 19% & 53%. This shows that when the rupee depreciates the company performance on

stock exchange also depreciates. But when we look at the performance with the Pound & Euro

there is a negative correlation at 31% & 8%, this shows that when the rupee depreciates against

pound & Euro the company performance on stock exchange appreciate.

I) Cipla

FII Inflow & Outflow

Share Holding pattern 2008-09 2009-10 2010-11 2011-12

Promoters 39.38% 36.80% 36.80% 36.80%

Mutual funds & UTI 4.54% 5% 6% 6.85%

Banks, FI & Insurance 13.87% 11.67% 12.59% 10.35%

FII 13.40% 16.81% 15.26% 16.07%

private corporate bodies 2.14% 3.94% 4.41% 6.23%

NRI/foreign corporate bodies 3.46% 3.33% 3.37% 3.32%

Bank of New York 1.06% 0.82% 0.48% 0.09%

45

Indian Public 22.07% 21.61% 20.97% 20.18%

shares in transit 0.08% 0.05% 0.12% 0.11%

Promoters

Mutual funds &

UTI

Banks,

FI & In

surance FII

private

corporat

e bodies

NRI/forei

gn co

rporate b

odies

Bank o

f New

york

Indian Public

shares in

transit

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

2008-092009-102010-112011-12

We can see from the diagram there is a continuous inflow of FII in the company shares,

which means that company is getting every year high percentage of FII as a investment in

the company.

EPS

2008-09 2009-10 2010-11 2011-12EPS 9.92 13.7 12.32 14.25

2008-09 2009-10 2010-11 2011-120

2

4

6

8

10

12

14

16

9.92

13.712.32

14.25

EPS

EPS

We can see from the chart that the company EPS is having both upward & downward trend. As

in year 2009-10 its increase compared to 2008-09 but in year 2011-11 it came down & again in

year 2011-12 it goes up which means company is performing good on EPS.

ROCE:

46

2008-09 2009-10 2010-11 2011-12

ROCE 22.39 22.16 16.22 18.74

2008-09 2009-10 2010-11 2011-120

5

10

15

20

2522.39 22.16

16.22

18.74

ROCE

ROCE

Company ROCE is going down in all the year as company from the year 2008-09 which

means that the company returns has been gone down. So the company has to work on it

to improve its ROCE.

Cipla share performance with Exchange rate:

Correlation with Cipladollar 0.504600579pound 0.020059129euro 0.246386406yen 0.714209055

There is a positive correlation of company performance with all the exchange rate. This shows

that when the rupee depreciates the performance of the company also depreciates. The

correlation with dollar is 50%, with pound is 2%, with euro 24% and yen 71%.

J) Coal India

EPS

2008-09 2009-10 2010-11 2011-12EPS 5.22 5.98 7.48 12.77

47

There is an increase in EPS when it goes up. It shows that company earnings are being

increasing as year progresses.

ROCE:

2008-09 2009-10 2010-11 2011-12ROCE 36.51 57.35 45.49 50.81

While we can see from the chart that the company ROCE has being increasing in year 2009-10

as compared to year 2008-09 which is a good sign for the sign. But when we see the performance

of year 2010-11 & 2011-12 the company ROCE has being reduced to 2009-10. The company has

to focus on the ROCE.

Coal India Performance with the exchange rate

Correlation with coal Indiadollar 0.172334809pound 0.100421155euro 0.217975178

48

yen 0.331054001There is a positive correlation of company performance with the exchange rate at 17%, 10%,

21% and 33%. This shows that when rupee depreciates the company performance also

depreciates on stock exchange

FII inflow

Coal India 2008-09 2009-10 2010-11 2011-12GOI 90% 90% 90% 90%FII 4.33% 6.37% 6.09% 5.44%Indian Public 3.96% 1.54% 1.63% 1.47%Banks & FI 0.64% 0.45% 0.50% 0.80%Private corporate bodies 0.96% 0.49% 0.51% 1.22%Mutual Funds 0.42% 1.10% 1.20% 0.96%NRI/OCBs 0.03% 0.03% 0.03% 0.03%others 0.13% 0.06% 0.04% 0.08%

We can see from the chart that as it’s a Government a company 90% shares are held by

the Government & rest of 10% are being distributed to others. While we see about the FII

investment there is inflow is there more as compared to the outflow.

K) DLF

EPS

49

2008-09 2009-10 2010-11 2011-12EPS 26.24 10.13 9.66 7.07

2008-092009-10

2010-112011-12

0

5

10

15

20

25

30 26.24

10.139.66

7.07

EPS

EPS

We can see from the diagram that the company EPS is going down in every year from 2008-09.

In 2008-09 the company EPS was 26.24 but it comes down to Rs: 7.07 in year 2011-12. So there

is a big flow down of EPS in the performance of the company.

ROCE

2008-09 2009-10 2010-11 2011-12

ROCE 14.01 6.71 6.86 8.02

2008-092009-10

2010-112011-12

0

2

4

6

8

10

12

14

1614.01

6.716.86 8.02

ROCE

ROCE

Here again we can see that the company ROCE is getting down wards. It shows that the

company returns capital employed is going down year on year.

FII inflow

50

Promoter & Promoter

group

directo

rs & th

eir re

latives

FII

NRI & fo

reign

nationals

MF & UTI

Banks.

FI & In

surance

Co.

Bodies co

rporate

Public0.00%

10.00%20.00%30.00%40.00%50.00%60.00%70.00%80.00%90.00%

100.00%

2008-092009-102010-112011-12

We can see from the chart that the FII inflow continuously high as compared to the FII

outflow. It means that the FII investment is going more on more as due to depreciation of

rupee.

DLF Performance with the Exchange rate

Correlation with DLFUS $ -0.614007616Pound 0.013490514Euro -0.346180045Yen -0.705070372

51

DLF 2008-09 2009-10 2010-11 2011-12

Promoter & Promoter group 88.55% 78.64% 78.50% 78.59%

directors & their relatives 0.03% 0.04% 0.04% 0.05%

FII 6.24% 14.77% 15.74% 15.47%

NRI & foreign nationals 0.12% 0.15% 0.10% 0.14%

MF & UTI 0.10% 0.28% 0.07% 0.11%

Banks. FI & Insurance Co. 0.25% 0.37% 0.20% 0.22%


Public 3.69% 4.15% 4.15% 4.08%

There is a negative correlation of company share with the exchange rate of US $, Euro & Yen at

61%, 34% & 70%. This shows that when rupee depreciates the performance of the company

goes on the stock exchange. While we see the performance of stock exchange with the Pound

there is a positive correlation at 1.3%, this shows when rupee depreciates against pound the

company performance on stock exchange also goes down.

L) ONGC

FII inflow & outflow

Share Holding Pattern 2008-09 2009-10 2010-11 2011-12President of India 69.23% 74.14% 74.14% 74.14%Banks & FI & Insurance Co. 10.05% 5.52% 5.74% 4.91%

FII 5.35% 4.45% 4.17% 5.43%MF & UTI 1.56% 2.11% 2.21% 1.72%NRIs 0.05% 0.05% 0.04% 0.04%Government Companies 10.09% 10.09% 10.09% 10.09%Others 1.77% 1.65% 1.91% 1.90%Employees 0.07% 0.08% 0.10% 0.10%Public 1.83% 1.91% 1.61% 1.67%

52

President o

f India

Banks

& FI & In

surance

Co. FII

MF & UTI NRIs

Government C

ompanies

Others

Employee

sPublic

0.00%10.00%20.00%30.00%40.00%50.00%60.00%70.00%80.00%

2008-092009-102010-112011-12

We can see from the chart that company FII trend was going upward in one year & in the next

year it’s coming down. So the investors are investing or withdrawing their money by keeping the

market performance

EPS

2008-09 2009-10 2010-11 2011-12

EPS 26 22.68 26.25 32.9

2008-092009-10

2010-112011-12

0

5

10

15

20

25

30

35

26

22.6826.25

32.9

EPS

EPS

We can see that in the starting company has being reduced but in the later years the

company EPS has been gone to increase in the year 2010-11 & 2011-12.

53

ROCE

2008-09 2009-10 2010-11 2011-12

ROCE 34.29 34.54 33.97 28.54

2008-09 2009-10 2010-11 2011-120

5

10

15

20

25

30

3534.29 34.54 33.97

28.54

ROCE

ROCE

We can see from the chart that the company Return on capital employed is continuously

going down ward. Due to this the company return on capital is down & the company has

to well, so that in the later years the company performance goes up.

Company Performance with the stock exchange:

Correlation with ONGCUS $ 0.531380047Pound 0.217821228Euro 0.316328497Yen 0.817843729

There is a positive correlation of the performance of the company with the exchange rate. This

shows that when the rupee depreciates the company performance also on stock exchange also

goes down. The maximum effect of company performance on downward stream is 81% which

means the effect of rupee depreciation against Yen is heavy.

M) ICICI Bank


54

Promoter

s

FII &

Forei

gn Ban

ks

Insuran

ce co

mpanies

Bodies co

rporat

e

Banks

& Finan

cial in

stitutions

Mutual funds

Individual

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

2008-092009-102010-112011-12

We can see from the graph that the FII inflow is going upwards which shows that there is

a huge inflow of FII in the company shares, but in the year 2011-12 the FII was reduce to

3% which shows outflow is more than inflow.

EPS

2008-09 2009-10 2010-11 2011-12

55

ICICI Report 2008-09 2009-10 2010-11 2011-12

Promoters 27.12% 28.28% 26.00% 26.85%

FII & Foreign Banks 36.64% 38.06% 39.58% 36.31%



Banks & Financial institutions 0.85% 0.70% 0.08% 0.12%

Mutual funds 6.35% 6.86% 7.37% 8.84%

Individual 7.95% 5.97% 5.47% 5.71%

EP

S 32.13 41.93 53.54 66.63

2008-092009-10

2010-112011-12

0

10

20

30

40

50

60

70

32.13

41.93

53.54

66.63

EPS

We can see that from the chart the company EPS is continuously going upwards which means

that company is giving more earnings per share as the year goes on.

ICICI share performance with the Exchange rate:

Correlation with ICICI BankUS $ 0.175734186Pound -0.117495791Euro -0.081843359Yen 0.452874629

There is a positive correlation of company performance with the Dollar & Yen at 17% & 45%.

This means that when the rupee depreciates the company performance on stock exchange also

depreciates. But when we see against the Pound & Euro there is a negative correlation at 11% &

8%, this shows that the company performance is well as against the depreciation of rupee.

N) Tata Motor


56

Promoter

& Pro

moters g

roup

Mutual

Fund / U

TI

Centra

l & St

ate Govt

Insura

nce Compan

ies FII

Individuals NRI

Clearin

g Mem

berTru

stCADR

Finan

cial In

stitutions /

Banks

0.00%5.00%

10.00%15.00%20.00%25.00%30.00%35.00%40.00%45.00%

2008-092009-102010-112011-12

We can see that from the chart though the company performance is going downward but there is

a continuous increase in the investment made by FII, so the inflow is more in these years on

company performance.

EPS

2008-09 2009-10 2010-11 2011-12

EPS basic -56.88 48.64 31.05 42.58

57

2008-09 2009-10 2010-11 2011-12

Promoters group 38.78% 37% 34.83% 34.99%

Mutual Fund / UTI 2.74% 3.60% 1.40% 1.65%

Central & State Govt. 0.09% 0.08% 0.09% 0.09%

Insurance Companies 13.45% 13.80% 11.81% 10.98%

FII 22.65% 23.59% 23.60% 27.75%

Individuals 7.39% 8% 7.24% 7.21%

NRI 0.50% 0.48% 0.45% 0.45%

Clearing Member 0.25% 0.22% 0.11% 0.21%

Trust 0.03% 0.03% 0.03% 0.08%

CADR 14.00% 12.82% 20.28% 16.59%

FI / Banks 0.12% 0.14% 0.16% 0.12%

2008-09 2009-10 2010-11 2011-12

-80

-60

-40

-20

0

20

40

60

-56.88

48.64

31.05

42.58

EPS basic

EPS basic

We can see that in year 2008-09 was very heavy for the businesses to continue their business

because of the major recession come on the USA & which stops the company to perform well &

due to this the company has to import raw material by paying more money than the previous year

which makes the company to perform downwards.

ROCE

2008-09 2009-10 2010-11 2011-12

ROCE 6.41 10.37 10.19 10.36

2008-09 2009-10 2010-11 2011-120

2

4

6

8

10

12

6.41

10.37 10.19 10.36

ROCE

ROCE

We can see that company ROCE is increasing in every year, which means that company

is giving good return on the capital employed.

58

Tata Motor Performance with the Exchange rate:

Correlation with Tata MotorUS $ 0.732403602Pound 0.574088683Euro 0.505540906Yen 0.819040597

There is a positive correlation of company performance with the exchange rate which means

that when the rupee depreciates against foreign currencies the performance of the company also

goes down in the stock exchange at 73% with dollar, at 57% with Pound, at 50% with Euro & at

81% with Yen.

P) Sun Pharma Ceutical

EPS

2008-092009-10

2010-112011-12

0102030405060708090

87.8

65.2

17.5 25

EPS

We can see from the chart that the company Earnings per share is being in every year. In 2008-

09 the company earnings per share was 87.8 which is decreased to 17.5 in year 2010-11, but in

2011-12 year company has shown the trend of moving upward as the company earnings per

share goes up to 25 Rs.

ROCE

59

2008-09 2009-10 2010-11 2011-12

EP

S 87.8 65.2 17.5 25

2008-09 2009-10 2010-11 2011-12

ROCE 26.69 17.3 20.3 27.22

2008-092009-10

2010-112011-12

0

5

10

15

20

25

30 26.69

17.3 20.3

27.22

ROCE

IN ROCE also in year 2009-10 & 2010-11 the ROCE was down & from 26.69% to 20.3%. But

in year 2011-12 company has moved upward its performance & due to this the company returns

was gone high of almost 7% at 27.22%.

FII inflow & Outflow pattern:

Share Holding Pattern 2008-09 2009-10 2010-11 2011-12

Indian Promoter & Person acting in concert 63.71% 63.72% 63.72% 66.19%

Mutual Funds / UTI 4.08% 2.57% 2.85% 4.63%

Bank/ FI & Insurance Co. 3.29% 2.91% 4.20% 0.31%

FII & Foreign Mutual Funds 17.10% 20.22% 18.39% 3.98%


Indian Public 5.65% 5.37% 5.51% 18.69%

NRIs / OCBS 0.09% 0.06% 0.07% 0.44%

Clearing Member 0.06% 0.04% 0.05% 0.49%

Foreign Companies 0.18% 0.12% 0.06% 0.00%

Trust 0.00% 0.03% 0.04% 0.00%

60

Indian

Prom

oter &

Perso

n actin

g in co

ncert

Mutual F

unds /

UTI

Bank, F

inanci

al Com

panies

& insura

nce co

mpanies

FII & Fo

reign

Mutial Fu

nds

Private

corpo

rate b

odies

Indian

Public

NRIs / O

CBS

Clearin

g Mem

ber

Foreig

n Com

panies Tru

st0.00%

10.00%20.00%30.00%40.00%50.00%60.00%70.00%

2008-092009-102010-112011-12

Till year 2010-11 the company FII has high inflow less outflow but in the year 2011-12 company

has huge outflow & less inflow, which means the company is reducing the FII capital from the

foreign due to depreciation of rupee.

Sun Pharma share performance with the exchange rate:

correlation with Sun PharmaUS $ 0.586230911Pound 0.3846725Euro 0.383886113Yen 0.820440598

There is a positive correlation of the company share performance with the exchange rate. This shows that

company stock price continue to decrease with the depreciation of rupee. The maximum effect of

decrease of company seen with the Yen because as against Yen 82% of the company share price

decreases.

61

Q) L & T


Share holding Pattern 2008-09 2009-10 2010-11 2011-12

Financial Institution 32.03% 32.99% 32.98% 32.09%

FII 11.90% 15.18% 14.44% 15.62%

GDRs 2.94% 3.55% 2.39% 3.12%

Mutual Fund 5.86% 4.31% 5.69% 4.32%

bodies corporate 5.77% 6.59% 6.27% 7.01%

directors & relatives 1.14% 0.84% 1.07% 0.46%

L & T employee welfare foundation 12.70% 12.22% 12.36% 12.15%

general public 27.66% 24.32% 24.80% 25.23%

Finan

acial

Insti

tution

FIIGDRs

Mutu

al Fu

nd

bodies co

rpora

te

directo

rs &

relati

ves

L & T

emplo

yee w

elfar

e foundati

on

gener

al public

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

2008-092009-102010-112011-12

From the chart we can see that the company FII inflow was high in every year, after year 2008-

09 the company is having huge Foreign Institutional Investor which means that the company has

a good FII inflow & less FII outflow.

EPS

2008-09 2009-10 2010-11 2011-12EPS 64.76 91.9 73.56 76.81

62

2008-092009-10

2010-112011-12

0102030405060708090

100

64.76

91.9

73.56 76.81

EPS

EPS

We can see from the chart company EPS is increased in the year 2009-10 as compared to 2008-

09 but in the year 2010-11 & 2011-12 company EPS was come down to 76.81 from 91.9 which

means that company earnings is being down.

ROCE:

2008-09 2009-10 2010-11 2011-12

ROCE 14.47% 13.48% 12.19% 10.68%

2008-092009-10

2010-112011-12

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00% 14.47%13.48%

12.19%

10.68%

ROCE

ROCE

The company ROCE has being continuously reducing, it means that company return on capital

employed is having a downward trend. The company has to take measure to stop the downward

trend.

63

L & T share performance with the Exchange rate:

Correlation with L & TUS $ 0.250710849Pound -0.343022884Euro -0.018647537Yen 0.44780456

There is a positive correlation of company performance with the US $ & Yen at 25% with dollar

& 44% with Yen. This shows that when rupee against Dollar & Yen depreciates there is also a

decrease in the performance of the company in the stock exchange. But there is negative

performance of the company against the Pound at 34% & Euro at 1%. This shows that when

rupee depreciates against Pound & Euro the company performance on stock exchange goes up.

R) Jindal Steel


Share Holders Pattern 2008-09 2009-10 2010-11 2011-12Promoters 58.75% 58.59% 58.41% 58.91%FI/BANKS/MF/UTI 5.29% 2.83% 6.13% 6.89%corporate bodies 6.79% 4.72% 2.62% 3.13%FII 18.70% 23.57% 23.47% 22.31%Public 9.32% 9.19% 8.31% 7.90%NRI & Trust 1.15% 1.09% 1.06% 0.86%

Promoters FI/BANKS/MF/UTI

corporate bodies

FII Public NRI & Trust0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

2008-092009-102010-112011-12

64

We can see that the FII inflow in year 2009-10 & 2010-11 is continuously going upward as

compared to year 2008-09 but in the year to 2011-12 there is a 1% of decrease of FII which

means there is FII outflow is more as compared to the inflow.

EPS

2008-09 2009-10 2010-11 2011-120

20

40

60

80

100

120

140

160

180

200

194.45

39.05 40.22 42.42

EPS

EPS

We can see from the chart that the company EPS has being drastically come down from year

2008-09 till 2011-12. It goes down to Rs: 42.42 in year 2011-12. This means that the company

Earnings per share has been reduced at a very high rate.

ROCE:

2008-09 2009-10 2010-11 2011-12ROCE 29.7 26.62 19.33 16.38

2008-09

2009-10

2010-11

2011-12

0

5

10

15

20

25

30

29.7

26.62

19.33

16.38

ROCE

ROCE

65

2008-09 2009-10 2010-11 2011-12EPS 194.45 39.05 40.22 42.42

We can from the chart that the company ROCE was again reduced year on year. In 2008-

09 the ROCE was 29.7 but till 2011-12 it comes to 16.38. This means company return on

capital employed is being reduced. Due to this the company has to work hard to increase

the ROCE.

Jindal Steel & Power share performance v/s BSE Sensex:

Correlation with JSPUS $ 0.149951812Pound -0.343138152Euro -0.032476925Yen 0.4499598

There is a positive correlation with the company performance with the exchange rate of US$ &

Japanese Yen currencies. While there is a negative correlation with the company performance

with the pound & euro currencies

S) NTPC

FII inflow & Outflow

Share holding Pattern 2008-09 2009-10 2010-11 2011-12GOI 89.50% 84.50% 84.50% 84.50%FII 3.60% 2.55% 3.53% 4.02%Indian Public 2.18% 2.29% 2.04% 1.95%Banks & FI 2.81% 7.35% 6.92% 6.63%Private corp. bodies 1.21% 1.51% 1.48% 1.77%Mutual fund 0.61% 1.70% 1.40% 1.03%NRI/OCBs 0.05% 0.06% 0.05% 0.04%others 0.04% 0.04% 0.08% 0.06%

66

GOI FII Indian Public

Banks & FI

Private corp.

bodies

Mutual fund

NRI/OCBs

others0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

2008-092009-102010-112011-12

As it’s a Government company, so the Government has maximum percentage of shares of

NTPC. So due to this the percentage of NTPC FII will be less. But then also the FII has

having inflow high as compared to outflow, which means that company is getting FII

inflow from foreign.

EPS

2008-09 2009-10 2010-11 2011-120

2

4

6

8

10

129.81

10.7211.34

11.9

EPS

EPS

We can see from the chart that company EPS has been continuously increasing which

means that the company is being performing well & giving good return on EPS.

67

2008-09 2009-10 2010-11 2011-12EPS 9.81 10.72 11.34 11.9

ROCE

2008-09 2009-10 2010-11 2011-12ROCE 11.77 13.64 12.86 11.43

2008-09 2009-10 2010-11 2011-1210

10.5

11

11.5

12

12.5

13

13.5

14

11.77

13.64

12.86

11.43

ROCE

ROCE

We can see that ROCE of a company in year 2009-10 increase to around 2% but in the

later year in year 2010-11 & 2011-12 the company ROCE was reduced again 1% & 2%

which means the com.

NTPC share price performance v/s Exchange rate

correlation with NTPCUS $ -0.090287982Pound -0.512703602Euro -0.180002337Yen -0.115431823

There is a negative correlation of the company with the exchange rate. This shows there is no

effect of the rupee depreciation against the performance of the company. The company

performance is positive as against the weakness of the rupee. The company maintains its

performance well in the stock exchange.

68

T) Hero Moto Corp:

EPS

2008-092009-10

2010-112011-12

0

20

40

60

80

100

120

64.2

111.8

96.5

119.1

EPS

EPS

We can see from the chart in year 2009-10 the EPS was drastically increase as compared to

2008-09 but in the year 2010-11 it is reduced to 96.5 as compared to 2009-10 while in year

2011-12 it again gone up to 119.1 as compared to 2010-11. It shows company is having upward

& downward trend of earnings per share.

ROCE:

2008-09 2009-10 2010-11 2011-12ROCE 51% 76% 62.30% 58.90%

2008-092009-10

2010-112011-12

0%

10%

20%

30%

40%

50%

60%

70%

80%

51%

76%

62%59%

ROCE

ROCE

69

2008-09 2009-10 2010-11 2010-12EPS 64.2 111.8 96.5 119.1

ROCE of the company has been reducing only as compared to year 2009-10. Due to this the

company has to work hard to stop the downward trend of ROCE.


Hero Moto Corp 2008-09 2009-10 2010-11 2011-12Promoters 52.21% 54.96% 52.21% 52.21%MF/UTI 2.06% 2.11% 1.15% 1.49%FII 31.75% 29.96% 32.79% 33.38%insurance companies 4.00% 4.61% 3.89% 2.62%FI/Banks 0.16% 0.02% 0.12% 1.53%Corporate bodies 1.38% 0.47% 1.91% 1.47%Indian Public 7.64% 7.04% 7.16% 7%Trust 0.61% 0.60% 0.60% 0.00%clearing members 0.09% 0.13% 0.06% 0.19% NRI 0.10% 0.10% 0.11% 0.11%

We can from the chart in Hero Moto Corp FII inflow is high. There is a continuous increase of

FII in every year.

Hero Moto Corp performance VS Exchange rate:

Correlation with Hero Moto CorpUS $ -0.602408507Pound 0.252078863Euro -0.245927467Yen -0.628916131There is a negative correlation of the company performance with the exchange rate with Dollar,

Euro & Yen. This shows as the rupee depreciates against these currencies the company

70

Promoter

s

MF/UTI FII

insuran

ce co

mpanies

FI/Ban

ks

Corporat

e boldies

Indian Public

Trust

cleari

ng mem

bers NRI0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

2008-092009-102010-112011-12

performance is going increasing only. The other reason could be the company exports their

products on these countries which help to gain good foreign exchange. But when we see the

company performance with the British Pound there is a positive correlation which shows that

when rupee depreciates the company performance also depreciates.

U) Mahindra & Mahindra

EPS

2008-09 2009-10 2010-11 2011-12EPS 51.57 45.08 53.46 53.18

2008-092009-10

2010-112011-12

40

42

44

46

48

50

52

5451.57

45.08

53.4653.18

EPS

EPS

The company EPS has being reduced in the year 2009-10 as compared to year 208-09. But again

in the year 2010-11 & 2011-12 company EPS has being increased compared to 2008-09.

ROCE

71

2008-09 2009-10 2010-11 2011-12ROCE 13.99 27.7 26.96 23.58

2008-092009-10

2010-112011-12

0

5

10

15

20

25

30

13.99

27.726.96

23.58

ROCE

ROCE

We can see from the chart the company ROCE has being increased in the year 2009-10 as compared to year 2008-09 but it is continue to fall in the year 2010-11 & 2011-12 almost 4%.

FII inflow & Outflow Pattern:

M & M 2008-09 2009-10 2010-11 2011-12Promoter & Promoter group 29.20% 26.34% 24.90% 25.18%MF/UTI 2.40% 4.16% 4.96% 3.31%Banks, FI,Insurance Co. & State Govt 23.10% 20.76% 16.25% 14.23%FIIs/Foreign Bodies 24.13% 26.65% 30.56% 35.01%Private corporate bodies 4.29% 7.65% 6.24% 7.45%Indian Public 9.55% 8.69% 10.17% 8.00%NRI/OCB/Foreign National 0.68% 0.58% 0.98% 0.88%Bank of New York 6.65% 5.17% 5.94% 5.94%

Promoter & Promoter

griup

MF/UTI

Banks,

FI,Insuran

ce Co. &

State

Govt

FIIs/Fo

reign

Bodies

Private

corporat

e bodies

Indian Public

NRI/OCB/Fo

reign

National

Bank o

f New

york

0.00%5.00%

10.00%15.00%20.00%25.00%30.00%35.00%40.00%

2008-092009-102010-112011-12

72

We can see that there is a continuous inflow of FII in Mahindra & Mahindra Company is very

high. This means that company is getting more & more foreign investment.

Mahindra & Mahindra Company Performance with the Exchange rate:

Correlation with M & MUS $ 0.495920867Pound 0.437753347Euro 0.2966549Yen 0.715228241There is a positive correlation of the company performance on stock exchange with the exchange

rate of the G5 countries. This shows when the rupee depreciates against the G5 countries, the

company performance also decreases.

V) Hindalco Co.

EPS

2008-09 2009-10 2010-11 2011-12EPS 3.21 22.17 12.84 17.74

2008-09 2009-10 2010-11 2011-120

5

10

15

20

25

3.21

22.17

12.84

17.74

EPS

EPS

In year 2008-09 the company EPS was Rs: 3.21 but in the next years company performed well &

its help to raise the EPS of the company more & more till 17.74 EPS in year 2011-12.

73

ROCE

2008-09 2009-10 2010-11 2011-12ROCE 9 7.46 8.9 6.15

2008-09 2009-10 2010-11 2011-120

1

2

3

4

5

6

7

8

9

9

7.46

8.9

6.15

ROCE

ROCE

We can see that from year 2008-09 the company ROCE is being continuously reduced in the

next 3 years. Till 2011-12 the company ROCE was come down to 6.15% from 9%. This means

that company return on capital is being reduced.

FII inflow

Hindalco 2008-09 2009-10 2010-11 2011-12Promoters 36.09% 32.08% 32.87% 32.06%MF/UTI 2.62% 2.93% 2.48% 2.89%Banks/FI/Govt. 16% 12.73% 10.49% 12.05%FII 10.33% 28.94% 30.91% 26.85%corporates 9.17% 4.11% 4.90% 6.62%individual 13.11% 8.42% 7.68% 8.86%NRI/OCBs 2.53% 2.16% 2.32% 2.27%GDRs 10.15% 8.63% 8.35% 8.40%

74

Promoter

s

MF/

UTI

Banks

/FI/G

ovt FII

corp

orates

individual

NRI/OCBs

GDRs0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

2008-092009-102010-112011-12

In year 2009-10 & 2010-11 the company FII has being increased from 2008-09. This shows that

company has high FII inflow while in year 2011-12 the company has reduced the investment of

FII i.e. in year 2011-12 FII inflow was less & FII outflow was more.

Hindalco Performance with exchange rate:

Correlation with Hindaalcodollar -0.292942688pound -0.428499384euro -0.440256886yen 0.052166759There is a negative correlation of company performance with the exchange rate of dollar, pound

& euro. When we find the correlation with the Yen there is a positive correlation

W) BHEL

EPS

2008-09 2009-10 2010-11 2011-12EPS 63.64 88.39 123.66 28.96

2008-092009-10

2010-112011-12

0

20

40

60

80

100

120

140

63.64

88.39

123.66

28.96

EPS

75

The company Earnings per Share is being continuously increasing in year 2010-11 & 2009-10 as

compared to 2008-09 which shows that company Earnings has being increasing in both the year.

While in year 2011-12 the company EPS was drastically reduced to almost 100 Rs. This is not

the good sign in the earnings per share for the company.

ROCE

2008-092009-10

2010-112011-12

32

34

36

38

40

42

44

46

36.92

41.6

44.27

40.5

ROCE

The company ROCE has being increase in year 2009-10 & 2010-11 which shows the company

return on capital is high while in year 2011-12 the company ROCE has being reduced as

compared to 2010-11 but as compared to year 2008-09 the return on capital is being increased.

FII Inflow

BHEL 2008-09 2009-10 2010-11 2011-12President of India 67.72% 67.72% 67.72% 67.72%MF & UTI 6.81% 6.71% 7.03% 1.44%Banks, FI, Insurance Co. 4.40% 6.03% 5.68% 11.40%FII 14.72% 13.07% 12.91% 13.49%corporate bodies 4.51% 4.18% 4.49% 2.83%Individuals 1.62% 1.99% 1.87% 2.69%NRIs 0.10% 0.14% 0.13% 0.19%trust 0.03% 0.03% 0.03% 0.05%clearing members 0.09% 0.13% 0.14% 0.19%

76

2008-09 2009-10 2010-11 2011-12ROCE 36.92 41.6 44.27 40.5

The pattern of FII is

almost nearer to each &

every year it moves on. This means that the company is getting FII investment at almost decrease

of 1% or 2%.

BHEL share performance VS Exchange rate:

Correlation with BHELdollar 0.697944713pound 0.464844176euro 0.478429386yen 0.80481033

There is a positive correlation of the company performance with the depreciation of the rupee.

This shows that when rupee depreciates against the foreign currency the company share

performance on stock exchange also decreases.

X) Hindustan Unilever Ltd

EPS

2008-09 2009-10 2010-11 2011-12EPS 11.51 9.92 10.68 12.95

77

President of In

idaMF &

UTI

Banks, FI,

Insurance C

o.FII

corporate b

odies

Individuals NRIs

trust

clearin

g mem

bers

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

2008-092009-102010-112011-12

2008-09 2009-10 2010-11 2011-120

2

4

6

8

10

12

1411.51

9.9210.68

12.95

EPS

EPS

In year 2009-10 & 20110-11 the company EPS has being continuously reducing while

comparing to year 2008-09 which means the company earnings has been decreasing. But in the

year 2011-12 the company earnings per share is being gone up.

ROCE:

2008-09 2009-10 2010-11 2011-12ROCE 118.59 106.78 102.47 93.08

2008-092009-10

2010-112011-12

0

20

40

60

80

100

120118.59

106.78102.47

93.08

ROCE

ROCE

The company ROCE has been continuously reducing. This means company returns on the capital employed is being reduced. So the company has to work hard to increase the return which they getting write now.

78

HUL FII inflow

Promoter

s

MF & UTI

FI/ban

ks

Insuran

ce co

. FII

bodies co

rporat

e

NRI/Forei

gn bodies

directo

rs rel

ative

s

individuals

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

2008-092009-102010-112011-12

The company has every year increasing the FII investment from foreign countries. This means that the company having huge inflow of FII & less outflow of FII.

HUL share performance with the exchange rate:

Correlation with BHELdollar 0.76391169pound 0.57389771euro 0.53105159yen 0.85259502There is a positive correlation with the company performance & the exchange rate. The maximum of rupee depreciation against foreign currencies with respect to company performance is seen with Yen, because when rupee depreciates against Yen the company performance decreases at 85% which there a huge effect on the performance of the company.

79

2008-09 2009-10 2010-11 2011-12Promoters 52.06% 52.02% 52.55% 52.50%MF & UTI 4.58% 3.24% 3.01% 1.90%FI/banks 0.13% 0.40% 0.39% 0.41%Insurance co. 10.40% 10.46% 8.94% 8%FII 14.35% 14.48% 17.27% 19.43%bodies corporate 2.68% 3.47% 2.58% 3.14%NRI/Foreign bodies 0.30% 0.38% 0.33% 0.34%directors relatives 0.01% 0.14% 0.01% 0.01%individuals 15.49% 15.41% 14.92% 14.27%

Y) ITC

EPS

2008-092009-10

2010-112011-12

0

2

4

6

8

10

12

8.82

11.01

6.538.05

EPS

EPS

In the year 2009-10 the EPS was increased to 3 Rs but in the year 2010-11 & 2011-12 was reduced to almost 3 to 5 EPS. This means that the EPS of the company has being reduced.

ROCE

2008-09 2009-10 2010-11 2011-12ROCE 34.09 43 43.51 47.33

2008-09 2009-10 2010-11 2011-120

5

10

15

20

25

30

35

40

45

50

34.0943 43.51 47.33

ROCE

ROCE

80

2008-09 2009-10 2010-11 2011-12EPS 8.82 11.01 6.53 8.05

The company ROCE is being continuously increasing which means that the return on capital has been grown up, which shows that company is getting better return on the capital employed.


Bank, FI, Insurance Co. & MF

FII Foreign Corporate

Bodies

NRIs & Foreign

Nationals

Bodies corporate

Public & other

GDR0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

2008-092009-102010-112011-12

The company FII inflow in year 2009-10 & 2010-11 has being reduced as compared to year 2008-09 which shows that the FII outflow was more than the FII inflow but when we see the year 2011-12 the FII inflow was more as compared to the preceding year, which shows that the company more investment from foreign bodies.

ITC Share Performance with the Exchange rate:

Correlation with ITCdollar 0.608875315pound 0.313008421euro 0.301259758yen 0.850068294

81

ITC 2008-09 2009-10 2010-11 2011-12Bank, FI, Insurance Co. & MF 36.21% 37.14% 35.84% 34.25%FII 14.15% 13.40% 14.04% 17.40%Foreign Corporate Bodies 31.45% 31.62% 31.37% 30.87%NRIs & Foreign Nationals 0.55% 0.55% 0.57% 0.54%Bodies corporate 5.66% 5.21% 6.44% 5.76%Public & other 11.59% 11.69% 11.41% 10.87%GDR 0.39% 0.39% 0.33% 0.31%

There is a positive correlation between the company performance & the exchange rate. This shows that the rupee depreciates its effects on the performance of the company

Z) SBI


2008-09 2009-10 2010-11 2011-12Central & state govt. 59.40% 59.40% 59.40% 61.58%MF/UTI 4.08% 4.22% 4.22% 4.81%FI 0.03% 0.11% 0.15% 0.21%Insurance Companies 11.42% 12.22% 12.52% 12.09%FII 13.99% 12.80% 10.90% 8.70%Corporate bodies 2.45% 2.42% 3.45% 3.60%Individual 5.24% 5.66% 6.02% 6.06%NRI 0.08% 0.14% 0.16% 0.20%trust 0.05% 0.06% 0.09% 0.06%clearing members 0.11% 0.12% 0.14% 0.16%DRs 3.15% 2.85% 2.95% 2.53%

Centra

l & sta

te go

vtMF/U

TI FI

Insurance

Companies FII

Corporate b

odies

Indivudual NRI

trust

cleari

ng mem

bers DRs0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

2008-092009-102010-112011-12

We can clearly see that the investment from foreign companies in SBI is continuously has being reducing. There is trend of FII outflow is more but less FII inflow.

EPS

2008-09 2009-10 2010-11 2011-12EPS 267.87 238.23 176.35 189.33

82

2008-09 2009-10 2010-11 2011-120

50

100

150

200

250

300 267.87

238.23

176.35189.33

EPS

EPS

We can here also see that the bank Earnings per share is being also reducing also in each consecutive year which means that the company’s earnings has been drastically reducing in each

SBI share performance with the exchange rate:

correlation with SBIdollar 0.152709pound -0.31009euro -0.16336yen 0.407941

There is a positive correlation between the SBI share price & exchange rate of dollar & euro at 15% & 40%. This shows that when rupee depreciates company share price also depreciates to 15% against dollar & 40% against yen. But when we see against pound & euro the company share price increases to 31% & 16% which shows that there is a negative correlation between rupee depreciation on pound & euro with compared to company performance on stock exchange& every year.

AA) Maruti Suzuki India LTD

EPS

2008-09 2009-10 2010-11 2011-12EPS 42.63 88.09 79.86 56.54

83

2008-092009-10

2010-112011-12

0102030405060708090

42.63

88.09

79.86

56.54

EPS

We can see the company EPS has being increasing in year 2009-10, 2010-11 & 2011-12 as compared to year 2008-09. But when we compared with the year 2009-10 the company earnings per share has being reducing for year 2010-11 & 2011-12.

ROCE

2008-09 2009-10 2010-11 2011-12ROCE 17.26 27.94 21.19 13.02

2008-092009-10

2010-112011-12

0

5

10

15

20

25

30

17.26

27.94

21.19

13.02

ROCE

ROCE

Again company has been not performing well accept in year 2009-10 the company has being giving downward trend to the earnings of the ROCE.

84


Maruti Suzuki 2008-09 2009-10 2010-11 2011-12Promoter group 54.21% 54.21% 54.21% 54.21%mutual fund/ UTI 3.09% 2.68% 3.09% 2.85%financial institutions/ bank 18.40% 13.93% 14.84% 12.95%FII 19.36% 21.12% 19.23% 21.45%corporate bodies 2.28% 6% 5.85% 5.83%Individuals 2.44% 2.25% 2.43% 2.35%clearing member, NRI & OCB 0.22% 0.17% 0.35% 0.36%

Promoter gr

oup

mutual fund/uti

financiia

l institutuins/

bank FII

corporate b

odies

Individuals

cleari

ng mem

ber, NRI &

OCB

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

2008-092009-102010-112011-12

We can see from the chart the company FII inflow is more than the FII outflow which means that the company has more foreign investment as a FII.

Maruti Suzuki India V/S Exchnage rate

Correlation with MSI

dollar0.345558

5pound -0.164336euro 0.174993yen 0.478257

There is a positive correlation of MSI with the exchange rate of Dollar, Euro & Yen which shows that when rupee depreciates against these currencies company performance also decreases. But the company performance is increased by 16% against the pound

85

AB) Bharti Airtel

ROCE

2008-09 2009-10 2010-11 2011-12ROCE 28.4 23.86 15.97 12.67

2008-092009-10

2010-112011-12

0

5

10

15

20

25

30 28.4

23.86

15.97

12.67

ROCE

Company ROCE has been continuously decreasing in each consecutive year. This shows that the company returns on capital employed has being reduced which is a not a good sign for the company performance.

EPS

2008-09 2009-10 2010-11 2011-12EPS 42.38 24.66 18.89 5.84

2008-092009-10

2010-112011-12

05

1015202530354045 42.38

24.66

18.89

5.84

EPS

86

Company performance on EPS has been also decreasing, which shows that company earnings per share being reduced on each & every year. This means the company earnings is reduced & the company has to work hard on to increase its earnings per share.

FII inflow

Share holding pattern 2008-09 2009-10 2010-11 2011-12Promoters 68.20% 68.12% 68.29% 68.50%Mutual Fund / UTI 3.69% 3.57% 3.57% 3.83%Financial institutions/ Banks 0.11% 0.12% 0.09% 0.06%Insurance Companies 5.05% 4.06% 5.05% 4.49%FII 17.30% 17.50% 17.36% 16.93%Corporate bodies 3.62% 4.60% 3.71% 4.56%Individuals 1.80% 1.19% 1.69% 1.45%NCR/Trust/ Clearing Members 0.23% 0.84% 0.24% 0.18%

Promoters

Mutual Fund / U

TI

Finan

cial in

stitutions/ Banks

Insurance

Companies FII

Corporate b

odies

Individuals

NCR/Trust/

Clearin

g Mem

bers

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

2008-092009-102010-112011-12

We can see that the FII performance is stable as on each & every year pass on. There is equal inflow & outflow of investment from foreign countries. So we can say there is a equal & outflow in the Bharti Airtel Company.

Bharti Airtel share Performance with the exchange rate:

correlation with Airteldollar 0.188031pound -0.16616euro 0.126415yen 0.492484

87

There is a positive correlation of the company performance against the dollar, euro & yen which shows company performance goes downward when rupee depreciates but the company performance goes up against the pound as there is a negative correlation between rupee depreciation against pound & company performance goes up.

AC) HDFC Corporation:

EPS

2008-09 2009-10 2010-11 2011-12EPS 63.11 91.57 25.26 30.4

2008-092009-10

2010-112011-12

0102030405060708090

100

63.11

91.57

25.26 30.4

EPS

The company EPS was increase in year 2009-10 but it was reduced in the year 2010-11 & 2011-12. There is an almost reduction of EPS on net profit of Rs: 65 per share in year 2010-11 & Rs 60 per share in year 2011-12 as compared to year 2009-10.

ROCE

88

2008-09 2009-10 2010-11 2011-12ROCE 10.54 9.58 9.04 14.35

2008-09 2009-10 2010-11 2011-120

2

4

6

8

10

12

14

16

10.549.58 9.04

14.35

ROCE

The company ROCE is being reduced in year 2009-10 & 2010-11 as compared to year 2008-09 which means that company return on capital employed is being reduced. But when we see about in the year 2011-12 the company ROCE was increased to almost 4% - 5% which means that in year 2011-12 company returns has being increased as compared to all other preceding year.

FII Inflow & Outflow pattern

Share Holding pattern 2008-09 2009-10 2011-12 2011-12MF/UTI 3.65% 3.75% 2.81% 3.28%FI/Banks 0.57% 1.34% 1.74% 2.66%Insurance Companies 8.03% 9.87% 9.13% 9.41%FII 59.92% 57.78% 58.71% 65.81%FDI- Foreign institutions 15.03% 15% 15.06% 4.77%corporate bodies 1.48% 1.51% 1.77% 2.93%individual 10.23% 9.93% 10.02% 9.75%NRI/CL/TRUST 0.58% 0.31% 0.32% 0.93%Director & their relatives 0.51% 0.51% 0.44% 0.46%

89

MF/UTI

FI/Ban

ks

Isuran

ce Compan

ies FII

FDI- F

oreign

institutions

corparate

bodies

individual

NRI/CL/T

RUST

Directo

r & th

eir re

latives

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

2008-092009-102011-122011-12

We can see from the chart that in HDFC Corporation the company major investment is through the FII & FDI from foreign institutions. This shows they have total 60% - 70% share of HDFC Corporation. This means that company has huge inflow of FII investment & less outflow of FII investment.

HDFC Corporation share performance with the exchange rate:

Correlation with HDFC Corpus$ 0.463556034Pound 0.180082533Euro 0.188751729yen 0.770797201

There is a positive correlation of the company performance with the exchange rate. This shows that when rupee depreciates against the currencies the company performance also depreciates due to this there is a positive correlation

AD) Dr. Reddy’s Laboratory


Share holding Pattern 2008-09 2009-10 2010-11 2011-12promoters 26.40% 25.77% 25.65% 25.61%IFI 13.41% 11.53% 8.19% 6.86%

90

Banks 0.19% 0.03% 0.24% 0.04%MF 6.57% 6.47% 5.58% 6.52%FII 22.16% 27.27% 25.90% 27.42%NRI 1.86% 1.73% 1.63% 1.48%ADRs/ Foreign Nationals 15.74% 14.54% 18.74% 16.82%Indian Public & Corporates 13.67% 12.66% 14.07% 15.25%

promoters

Indian Fin

ancia

l institutions

Banks MF FII NRI

ADRs/ Forei

gn Nati

onals

Indian Public

& Corporates

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

2008-092009-102010-112011-12

While seeing the chart we can see that the company is getting more & more FII inflow & it shows that company FII investment is high.

EPS

2008-09 2009-10 2010-11 2011-12EPS -54.48 20.83 59.06 76.76

91

2008-092009-10

2010-112011-12

-60

-40

-20

0

20

40

60

80

-54.48

20.83

59.0676.76

EPS

We can see from the chart that in the year 2008-09 the company EPS was drastically showing negative results of earnings per share. But in the later years the company performance has been good to make & gives positive earnings per share & in the each year it goes on increasing only.

Dr. Reddy’s Lab Share performance with the exchange rate

Correlation with Dr. ReddyUS $ 0.463556034Pound 0.180082533Yen 0.770797201Euro 0.188751729

There is a positive correlation between the Dr. Reddy’s Lab & Exchange rate which rupee depreciate company performance on stock exchange also decreases.

FINDINGS When the Rupee Depreciates against the US$, Pound Sterling & Euro there is a negative

correlation with these exchange rate with BSE Sensex index, while there is a positive

correlation between the Japanese Yen & BSE Sensex.

In this project work I found that the companies who are exporting their products are gain

from the depreciation of the rupee. They are mostly IT-Sector Companies because when the

92

rupee depreciates they are in a position to sell more products at the rate which is prevailing

on that day exchange rate.

There is a low performance for the power generation company because the rupee is

depreciating as against the foreign currencies due to which the companies has to pay more &

more money for the purchase of raw material like crude oil & also the latest technology for

which the company has to imports theses raw material from the foreign countries.

The FII investment in the companies is good but accepts for the year 2008-09 where the

companies FII investment is being at a negative stage because of the great depreciation

comes in America in January 21st, 2008.

While we see the working of the oil marketing companies they also have to suffer loss or

downward return because of rupee depreciates they have to import crude oil in more quantity

and due to this the oil marketing companies has to pay amount in dollar, and thus the rupee

depreciates each & every day, the company has to buy pay more amount in terms of dollar

for the less quantity.

The Pharmaceutical companies are performing well because they are selling more generics

in the foreign countries & maximum revenue they are getting from selling the generics in the

foreign countries. The rupee depreciates shows good signs for these companies as they have

lots of international generics which help them to generate lots of revenue from the foreign

countries.

The Auto sector companies perform well because the companies are exporting more & more

two wheelers & four wheelers vehicle in the foreign countries.

For the Telecom sector company they are also benefitted because Telecom sector companies

business are being carried out globally, so they get lots of customer base and because of their

good service it helps the companies to perform well in the country.

While banking sector also perform well because as the rupee depreciation, there is more &

more exchange of foreign currency which helps the company to make more & more profit.

There is a positive correlation between the exchange rate and the Sensex.

93

The R-square statistics shows that BSE Sensex is dependent on US Dollar at 9.44% which

shows that the rupee depreciation has only this much effect on Sensex.

The R-square statistics shows that BSE Sensex is dependent on British Pound at 0.3% effect

on the Sensex.

The R-square statistics shows that BSE Sensex is dependent on European Euro at 1.55%

effect on the Sensex when rupee depreciates against the Euro.

The R-square statistics shows that BSE Sensex is dependent on Japanese Yen at 9% effect on

Sensex which shows only 9% effect is seen on the Sensex.

SUGGESTIONS

The Ravi Investor should give their investor the idea about to invest in IT-Sector

companies & Banking sector. The reason is that when the rupee depreciates the IT

companies are more beneficiaries of this. As the rupee depreciates they will import more

94

& more quantity which will give them a better chance to earn more in foreign exchange

& to increase their profit margin.

They can also give the idea to invest the investor money on Pharmaceutical companies.

Because Pharmaceutical companies are earnings more & more revenue by selling

generics in the foreign countries.

The banking sector shares for companies are also good as this will provide more gain to

the investor who invests their money on the banking sector.

The Ravi investor can also guide his investor to invest their money on the companies

where there is a high percentage of FII inflow for example HDFC Corporation, Dr.

Reddy Lab, TCS, Infosys, Wipro etc. because they are the companies who are performing

well in the stock market.

The Ravi investor should not give the suggestion of investing in the Power sector & steel

manufacturing companies.

The investor to invest in the bike; auto rickshaw & car segment because they are also

exporting the final product to the foreign countries in the foreign currencies which helps

them to generate more revenue in terms of foreign currency.

CONCLUSION

The main objective of the study is to find the impact of rupee depreciation on the Indian

stock market. To test this we have employed methodology of Karl Pearson coefficient

correlation & regression analysis. Correlation was used d to know there was positive

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impact or negative impact & regression analysis was find the extent of impact of rupee

depreciation on BSE Sensex.

According to data analysis & findings we can conclude that there is no significant impact

on the Sensex when rupee depreciates. But there is a strongly positive & negative impact

of rupee depreciation on the companies listed on Sensex.

After doing this research work we found that when the rupee depreciates it benefits to the

companies which are of IT sector, Pharmaceutical Companies & also to the banking

sector. This leads to the companies to perform in a good way and to earn more & more

revenue from its operations carried out day to day nationally or internationally.

The companies those who are in power sector & oil sector they are not performing well

there returns & earnings are being decreasing due to depreciation of rupee. Because of

depreciation of rupee they have to pay more dollars for purchase of crude oil which

makes their income from operation less.

The companies those who are in bike & car segment they are also performing well

because they are importing technology from foreign and make use of that technology on

making bike or car, after that the company sell the finals products in foreign countries &

in a foreign currency which helps the company to earn more revenue as rupee

depreciates.

While we talk about banking sector, they are the biggest gainers of the rupee depreciation

because the individual who are travelling foreign countries, so they required foreign

money which they will get by exchanging of foreign currency with banks which helps the

bank to earn more money as rupee depreciates & foreign currency is becoming stronger,

they have to pay more money when the individual goes for trip in foreign countries.

The pharmaceutical companies are also performing well because whatever generics they

are making almost 70% - 80% are selling that generics on the foreign countries which

makes the company to earn more from the operation carried out by the companies.

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BIBLIOGRAPHY

Website:

www.moneycontrol.com / ITC

www.moneycontrl.com/ Dr. Reddy’s LAB

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http://www.moneycontrl.com/

http://www.moneycontrol.com/

www.moneycontrol.com /Bajaj Auto

www.moneycontrol.com./ L& T

www.rbi.org.in/ Exchange rate study

www.sebi.com/ FII investment

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www.in.finance.yahoo.com/ ITC share price

www.in.finance.yahoo.com/ HUL share price

www.in.finance.yahoo.com/ Hindalco share price

www.in.finance.yahoo.com / Bajaj Auto share price

www.in.financeyahoo.com / coal India share price

www.in.finance.yahoo.com / GAIL share price

wwww.in.finance.yahoo.com / TCS share price

www.in.fiannce.yahooo.com / Tata Motor share price

www.in.finance.yahoo.com/ Tata Power share price

www.in.finance.yahoo.com /Tata steel share price

www.in.finance.yahoo.com /Infosys share price

www.in.finance.yahoo.com / Wipro share price

www.in.finance.yahoo.com / Sun Pharma share price

www.in.finance.yahoo.com / Dr. Reddy’s share price

www.in.finance.yahoo.com / Bharti Airtel share price

www.in.finance.yahoo.com / ONGC share price

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http://www.in.finance.yahoo.com/







http://www.in.fiannce.yahooo.com/


http://www.in.financeyahoo.com/






http://www.sebi.com/

http://www.rbi.org.in/

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http://www.moneycontrol.com/

www.infinance.yahoo.com / BHEL share price

www.in.finance.yahoo.com / CIPLA share price

www.in.finance.yahoo.com / Reliance share price

www.in.finance.yahoo.com/ JSPL share price

www.in.finance.yahoo.com / Sterlite industries share price

www.in.finance.yahoo.com / HDFC bank share price

www.in.finance.yahoo.com / ICICI Bank share price

www.in.finance.yahoo.com /SBI share price

www.in.finance.yahoo.com / HDFC Corporation share price

www.in.finance.yahoo.com / NTPC share price

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www.in.finance.yahoo.com /Maruti Suzuki share price

Journals

1) Manjinder Kaur, Sharanjit S. DHILLON – year 2010 – on Determinants of Foreign Institutional Investors Investment in India on Eurasian Journal of Business & Economics 2010, 3 (6), 57-70

2) By Anubhav Shrivastavav – year 2013- influence of FII flows on Indian Stock Market on GYANPRATHA-ACCMAN Journal of Management, Volume 5, sand Issue 1.

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http://www.infinance.yahoo.com/

3) Determinants of Exchange rate in India

BY: Mita H. Suthar, H.L. Institute of Commerce April 21, 2008

GLOSSARY

FII: An investor or investment fund that is from or registered in a country outside of the one in which it is currently investing. Institutional investors include hedge funds, insurance companies, pension funds and mutual funds.

Sensex: An abbreviation of the Bombay Exchange Sensitive Index (Sensex) - the benchmark index of the Bombay Stock Exchange (BSE). It is composed of 30 of the largest and most actively-traded stocks on the BSE. The index is calculated based on a

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free-float capitalization method when weighting the effect of a company on the index. This is a variation of the market cap method, but instead of using a company's outstanding shares it uses its float, or shares that are readily available for trading. The free-float method, therefore, does not include restricted stocks, such as those held by company insiders that can't be readily sold. To find the free-float capitalization of a company, first find its market cap (number of outstanding shares x share price) then multiply its free-float factor. The free-float factor is determined by the percentage of floated shares to outstanding. For example, if a company has a float of 10 million shares and outstanding shares of 12 million, the percent of float to outstanding is 83%. A company with an 83% free float falls in the 80-85% free-float factor, or 0.85, which is then multiplied by its market cap (e.g., $120 million (12 million shares x .$10/share) x 0.85 = $102 million free-float capitalization).

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stock market final & new

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