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INTRODUCTION
TOCAPITAL
MARKETINSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD. Page 1
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INDIAN CAPITAL MARKET
INTRODUCTION:
Every bus!ess u!" !ee#s $%!ey "% !a!'e "s a'"v"es. T(e $%!ey
s !ves"e# ! )(ys'a* res%ur'es, .e. *a!# a!# bu*#!g, $a'(!es a!#
e+u)$e!", s"%' % ra- $a"era*, e"'., -('( are use# by "(e e!"er)rse !
)r%#u'"%!. A** "(ese res%ur'es "%ge"(er '%!s""u"e 'a)"a*/. Ca)"a* s
%"e! #e!e# as 0-ea*"( use# ! "(e )r%#u'"%! % ur"(er -ea*"(.
A bus!ess e!"er)rse 'a! rase 'a)"a* r%$ var%us s%ur'es. 2%!g3
"er$ u!#s 'a! be rase# e"(er "(r%ug( ssue % se'ur"es %r by b%rr%-!g
r%$ 'er"a! !s""u"%!s. S(%r" "er$ u!#s 'a! a*s% be b%rr%-e# r%$
var%us age!'es. T(us bus!ess u!"s 'a! rase 'a)"a* r%$ ssue %
se'ur"es a!# b%rr%-!gs 4*%!g3"er$ a!# s(%r"3"er$5. I! a##"%! "%
bus!ess u!"s, )ub*' '%r)%ra"%!s a!# g%ver!$e!" are "(e %"(er $a6%r
b%rr%-ers % u!#s. T(e *e!#ers % u!#s !'*u#e "(e !#v#ua* !ves"%rs
4"(e (%use(%*# se'"%r5, "(e !s""u"%!a* !ves"%rs, ba!s, a!# s)e'a*
!#us"ra* !a!'!g !s""u"%!s. T(e b%rr%-ers a!# *e!#ers br%ug("
"%ge"(er "(r%ug( !a!'a* $are"s. T(e "er$ 0!a!'a* $are"
INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD. Page 7
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INDIAN CAPITAL MARKET
'%**e'"ve*y reers "% a** "(%se %rga!8a"%!s a!# !s""u"%!s -('( *e!#
u!#s "% bus!ess e!"er)rse a!# )ub*' au"(%r"es. I" s '%$)%se# % "-%
'%!s""ue!"s 9 "(e $%!ey $are" a!# "(e 'a)"a* $are". :(*e "(e %r$er
#ea*s -"( "(e )r%vs%! % s(%r"3"er$ 're#", "(e *a""er #ea*s -"( "(e gra!"% $e#u$3"er$ a!# *%!g3"er$ 're#".
INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD. Page ;
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INDIAN CAPITAL MARKET
CAPITAL MARKET:
Ca)"a* Mare" s "(e ba'b%!e % a!y '%u!"ry/s e'%!%$y. I"
a'*"a"es '%!vers%! % sav!gs "% !ves"$e!". I! I!#a "(e '%$$%!
!ves"%rs )ar"')a"!g ! "(e e+u"y $are" s $assve. T(e !u$ber %
'%$)a!es %er!g e+u"y "(r%ug( )r$ary $are"s !'rease#
'%!"!u%us*y ! "(e )%s" !#e)e!#e!'e )er%#. T(e 'a)"a* $are" s
a'"ua**y re*e'"!g -(a" s (a))e!!g ! "(e e'%!%$y a!# -(a" s e
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INDIAN CAPITAL MARKET
T(e s"%' $are" ! I!#a s -"!ess!g (g( v%*a"*"y. T(s v%*a"*"y
(as sg!'a!" $)a'" %! "(e !ves"$e!" $a!age$e!" a!# "(e ra"e %
re"ur!. T(e !a#e+ua'y % "(e sys"e$ be'%$es %bv%us "(e !s""u"%!s
! "(e sys"e$ a* "% -"(s"a!# "(e )ressures % $are" %r'es su'( as "(e
v%*a"*"y. T(e regu*a"%ry $easures r%$ SEBI, "(e $a! regu*a"%r ! "(e
I!#a! F!a!'a* Sys"e$, (ave *e!" %r'e "% "(e su)ervs%ry !%r$s a!#
$)r%ve# "(e s"a!#ar#s % #s'*%sure, br!g!g grea"er "ra!s)are!'y !
"(er -ae.
A! $)%r"a!" ssue re*a"e# "% "(e Ca)"a* Mare"s s "(e u!#a$e!"a*
)(*%s%)(y "(a" 0S(a)e u) "(e e'%!%$y a!# "(e 'a)"a* $are"s -*
re*e'" -(a" s a'"ua**y e
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INDIAN CAPITAL MARKET
PROBLEM STATEMENT:
I! ear*er "$es "(e !ves"%rs are !%" s% a-are % "(e $are" ! %"(er
-ay say "(a" "(e !ves"%rs are !%" "%% $u'( !%-*e#geab*e. As "(ey are
!%" "%% $u'( !%-*e#geab*e "(ey !ves"e# ! $are" -"(%u" us!g a!y
'%!'e)" a!# s**s. T(s s"u#y s a*s% %r e!(a!'!g "(e !%-*e#ge %
var%us !ves"%rs. S"u#y a*s% sugges"e# "(a" (%- ge!u!e !ves"%rs s(%u*#
rea'" be%re a!# a"er !ves"!g ! $are".
T(e I!#a! 'a)"a* $are" s a'e# $a!y )r%b*e$s a!# "(s s"u#y s
rs"*y #e!e# -(a" s "(e )r%b*e$ ! I!#a! 'a)"a* $are" as % 17.
1. As % 17, "(e B%$bay S"%' E
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INDIAN CAPITAL MARKET
'%!s%*#a"e# )r'e, !s"ea# % u!bu!#*!g "(e "ra#e )r'e a!# "(e
br%erage ee.
;. As -"( a** "ra#!g *%%rs, "(ere -as !% )r'e9"$e )r%r"y, s% users %"(e $are" -ere !%" assure# "(a" a "ra#e -as e
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INDIAN CAPITAL MARKET
. A )e'u*ar $are" )ra'"'e 'a**e# ba#*a a**%-e# br%ers "% 'arry
)%s"%!s a'r%ss se""*e$e!" )er%#s. I! %"(er -%r#s, eve! %)e! )%s"%!s a"
"(e e!# % "(e %r"!g(" ## !%" a*-ays (ave "% be se""*e#.
Ab%ve, a** are "(e )r%b*e$s ! "(e I!#a! 'a)"a* $are" as % 17
bu" "$e '(a!ge a!# $%s"*y "(ese )r%b*e$s are s%*ve#.
OBJECTIVE
INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD. Page
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INDIAN CAPITAL MARKET
OF THE
STUDY
OBJECTIVES OF THE STUDY:T(e s%*e e%r" be(!# 'arry!g %u" "(s s"u#y s "% )r%v#e gu#a!'e %
I!#a 'a)"a* $are". A*s%, #e!!g "(e re*a"%!s() % I!#a! 'a)"a
$are"s -"( g*%ba* 'a)"a* $are"s.
INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD. Page
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INDIAN CAPITAL MARKET
1. T% u!#ers"a!# "(e )ra'"'a* & "(e%re"'a* as)e'"s % "(e CAPITA2
MARET OF INDIA.
7. T% )r%v#e "(e !%r$a"%! "% "(e )r%s)e'"ve !ves"%rs ab%u" "(e
au"% '%$)a!es
% au"% seg$e!".
;. T% u!#ers"a!# "(e re*a"%! be"-ee! s"%' $are" a!# I!#a!
e'%!%$y ! '%$)ars%!
-"( "(e -%r*#/s e'%!%$y.
?. T% gu#e & (e*) )r%bab*e !ves"%rs (%- "% !ves" !"% a )ar"'u*ar
se'"%r a!# ! -('("y)e % $are" '%!#"%!s.
INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD. Page 1
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INDIAN CAPITAL MARKET
RESEARCH
METHODOLOGY
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INDIAN CAPITAL MARKET
STUDY DESIGN:1. Data sourc
Se'%!#ary Da"a=
I!#us"ry Re)%r"s
I!"er!e"
B%%s & Maga8!es
!" A#a$%s&s ' I#tr(rtat&o#
T(e var%us "%%*s %r a!a*yss use# are gra)(s, '(ar"s, )er'e!"age
gr%-"(, se'%!#ary #a"a.
METHOD OF ANALYSIS:
1. Fu#)a*#ta$ A#a$%s&s
Fu!#a$e!"a* a!a*yss #%!e %r s"u#y!g "(e (%- u"ure )r'es % "(e
'%$)a!y -** )er%r$. Fu!#a$e!"a* a!a*yss s useu* "% !#!g "(e rg("
va*ue % "(e '%$)a!y. Fu!#a$e!"a* a!a*yss !'*u#es "(e s"u#y %
E'%!%$y, I!#us"ry a!# C%$)a!y. F%r es"$a"!g a!y '%$)a!y/s s(are
)r'e !%" %!*y "(e (s"%r'a* )er%r$a!'e #a"a % "(a" '%$)a!y are very
useu* bu" a*s% "(e +ua!""a"ve a!a*yss % "(e reve!ue, asse"s *+u#"y,e
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INDIAN CAPITAL MARKET
INTRODUCTI
ON TOORGANI+ATI
ON
INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD. Page 1;
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INDIAN CAPITAL MARKET
COMPANY PROFILE:S(are(a! s a! e+u"es %'use# %rga!8a"%! "ra'!g "s *!eage "% SSI
4S(r)a* Seva!"*a* a!"*a* Is(-ar*a*5, a ve"era! e+u"es s%*u"%!s
'%$)a!y -"( %ver #e'a#es % e %!e "(a"
(e*)s y%u $ae !%r$e# #e's%!s a!# s$)*es !ves"!g ! s"%'s. T(e
'%$$%! "(rea# % e$)%-er$e!" s -(a" S(are (a!/s a** ab%u"J
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INDIAN CAPITAL MARKET
S,ar -,a# &s a$so a.out /ocus. S(are (a! #%es !%" '*a$ e
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INDIAN CAPITAL MARKET
SSI (as bee! v%"e# "(e bes" #%$es"' br%erage ! I!#a by Asa $%!ey
P%**s/ 7?. A*s% SSI s be!g ra"e# as N%. 1 F!a!'a* Resear'(er by
Bus!ess T%#ay, ! "(e Survey '%!#u'"e# %! 2ea# Ma!agers % a** "(e
Mu"ua* Fu!#s.
Bas'a**y, "(e '%$)a!y s a $are" *ea#er ! )r%v#!g br%er!g serv'es
a!# (as a "%) "ur!%ver ! "ra#!g a!# "(e (g( "ur!%ver $aes " "(e !%. *
! "(e $are". T(e $a! #ere!'e s "(e serv'es "(a" "(ey )r%v#e "% "(e
!ves"%rs -(% rea**y !ee# ". T(e serv'es are #s'usse# ! $%re #e"a* !
"(e $are"!g a'"v"es. T(e '*e!"s are $a!age# -"( a re!#*y '%r)%ra"e
'u*"ure "% gve ($ $%re be!e"e# !ves"$e!" #eas a!# $%"va"e ($
-(e!ever (e !ee#s. T(e '%$)a!y s )r%v#!g as $a!y ")s "% "(e '*e!"s
4)re3$are", %!*!e a!# )%s"3$are"5 %r $%re a!# $%re "ra#!g #eas a!#
"(e $a!ager (e*)s ea'( '*e!" "% '%!'e!"ra"e %! a e- s'r)"s s% "(a" (e
'a! $a!age "(e )r%"L*%ss.
I! s(%r", S(are (a! s 'urre!"*y (av!g a g%%# )%s"%! ! "(e $are" -"(
"(e (g(es" !% % "ra!sa'"%!s a!# a*s% "(e (g(es" "ur!%ver 4buy!g &
se**!g5 ! I!#a a!# a *ea#er ! )r%v#!g be""er serv'es "% "(e !ves"%rs.
S(are (a!, I!#as *ea#!g s"%' br%er s "(e re"a* ar$ % SSI, a!#
%ers y%u #e)%s"%ry serv'es a!# "ra#e e
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INDIAN CAPITAL MARKET
"ra#!g )r%#u'"s, -('( are (av!g %!e % "(e (g(es" su''ess ra"es ! "(e
!#us"ry "(e *arges" '(a!.
NATURE :S(are(a! s bas'a**y a serv'e )r%v#!g r$. I" s a s"%'
br%!g r$ -('( )r%v#!g serv'es % se**!g a!# )ur'(ases % s"%'s %!
be(a* % %!e !ves"%r r%$ a!%"(er !ves"%r a!# "(e! "ra!ser s"%'s "%
res)e'"ve #e$a"era*8e# a''%u!". S(are(a! 2$"e# s a re"a* !a!'a*
serv'es )r%v#er -"( a %'us %! e+u"es, #erva"ves a!# '%$$%#"es
br%erage e
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INDIAN CAPITAL MARKET
'%$)a!y -as a-ar#e# "(e 7@ M%s" Preerre# S"%' Br%!g Bra!# by
Aa-a8 C%!su$er %"e.
SSI !a$e# "s %!*!e #vs%! as SHARE HAN a!# " s !"% re"a*
Br%!g.
T(e bus!ess % "(e '%$)a!y %ver(au*e# years ag% %! February ,
7
I" a'"s as a #s'%u!" br%erage (%use "% a u** serv'e !ves"$e!"
s%*u"%!s )r%v#e
I" (as s)e'a*8e# resear'( )r%#u'" %r "(e s$a** !ves"%rs a!# #ay
"ra#ers.
2arges" '(a! % s(are s(%)s -('( s 7@ s(are s(%)s ! 7 '"es,
?1@ Fra!'(sees & %ver 1 Bra!'(es a'r%ss I!#a.
I" (as 7@$L"ra#es every #ay.
2ea#!g )*ayer "%#ay -"( 7 $are" s(are.
Over %!*!e '*e!"s.
T(e s"e -as a*s% *au!'(e# %! February , 7 a!# !a$e# " as---.s(are(a!.'%$.
T(e S)ee# Tra#e a''%u!" % s(are (a! s "(e !e
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INDIAN CAPITAL MARKET
Pu#c, $: Your guide to the financial jungle
S"a"e$e!" #e!es "(a" S(are(a! s !%" 6us" a! s"%' br%!g
r$ -('( (e*)s "(e !ves"%r "% #% "ra#e %! be(a* % "(e$ bu" "(ey
a*s% gu#e "(e !ves"%r "% ! -('( se'"%r "% !ves", -(e! "% !ves",
(%- $u'( a$%u!" "% !ves". S(are(a! #% a** "(ese a'"v"es a"er
u!#ers"a!#!g "(e )ar"'u*ar !ves"%r/s !ee#s, %!e !ves"%r/s !ee#
#ers r%$ a!%"(er !ves"%r. S% S(are(a! s $%re !"eres"e# !
gu#!g "(e !e- !ves"%r -(% -a!" "% s"ar" !ves"$e!" ! s"%'
$are", %r "(e !ves"%r -(% s !e- ! s"%' $are" "(ere s s)e'a*
gu#a!'e ava*ab*e %! S(are(a!/s -ebs"e .e. %!
---.s(are(a!.'%$"%)' 'a**e# first step -('( s #esg!e#
s)e'a**y %r "(e !e- !ves"%r.
As a retail brokering outfit, customer service ranks extremely high
in our list of priorities. Effectively managing client expectations and
offering them a high quality of customer service are key for us.
Kta# Par-,0
Chief echnology !fficer,
"harekhan #imited
T(e ab%ve s"a"e$e!" -as gve! by S(are(a!/s '(e "e'(!%*%gy
%'er -('( s(%-s "(a" -(e! "(ey (a# !"r%#u'e# %!*!e "ra#!g a'*"y
! "(e year 7, "(ey -a!" "% be " as 'us"%$er3re!#*y as -e** as
'%!ve!e!" a*s% s% "(a" a !e- !ves"%r 'a! a*s% use ". T% su$ u),
S(are(a! br!gs "% y%u a user3 re!#*y %!*!e "ra#!g a'*"y, '%u)*e#
-"( a -ea*"( % '%!"e!" "(a" -** (e*) y%u s"a* "(e rg(" s(ares.
SSKI Grou( 1 Cor(orat StructurINSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD. Page 1
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SSKI Corporate
Finance Pvt.Ltd.
Investment Bankingarm of the group
Shareholding pattern
50.5% SSKI SecuritiesPvt. Ltd.
4.5 % !orakhia famil"
SSKI Investor Services
Pvt. Ltd.
#etail $roking arm of thegroup
Shareholding pattern
5% !orakhia famil"&promoters'
().5% *SB+ Private,-uit" !anagement!auritius
().5% /irst +arl"leentures !auritius
1% Intel Pacific Inc.
SSKI Securities
Pvt. Ltd.
Morakhia Family &
Associates
O2#s 345
o/
INDIAN CAPITAL MARKET
I#t6rat) E7u&t% So$ut&o#s Pro8&)r:
A$%!g "(e "%) ; bra!#e# re"a* serv'e )r%v#ers
Mu*"3'(a!!e* a''ess "% '*e!"s
Ta*%r $a#e resear'( a!# )r%#u'"s
De)%s"%ry Serv'es
Derva"ves
I!!%va"ve )r%#u'"s %r e!(a!'e# )er%r$a!'eBes" resear'( "ea$ ! "(e -%r*#
CORPORATE OFFICE
INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD. Page 7
O2#s
39"35 o/
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INDIAN CAPITAL MARKET
HA! "FFIC 2 S*3#,K*3 L6.
3 7 80 P*9,I* *9:S,
P*9,I* !ILL +9P:6
S,3P3I B3P3 !3#;
L9 88 1500 =10 15 00
$% SI 2 ???.sharekhan.com
C" 2 3#: S*3*
otal Share Shops 2 !ore than )85@ in more than 8)0 cities
otal mployees 2 !ore than =000 across India
HR POLICIES ' PERFORMANCE APPRAISAL:
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INDIAN CAPITAL MARKET
HR (o$&c&s ' (roc)urs
C%!#u'"= O'e "$e
T(e %'a* "$!g are =;a.$ "% =%% ).$. Re)%r"!g eve! %!e
$!u"e a"er =;a.$ s(a** be a *a"e $ar sys"e$. ; su'( *a"e $ars
! "(e $%!"( a"er be '%!s#ere# as 1#ay/s *eave. 2e -se e$)*%yee
a""e!#!g %'e a"er 11=;a.$ %r *eav!g %'e be%re ;=;).$ -**
be $are# abse!" %r (a* #ay.
I a!y HOD #e'#es %! #ere!" -%r "$!g %r (s "ea$, "(e! "$!g
(as "%
be %**%-e# a''%r#!g*y & "(e *a"e '%$!g -** be as )er "(e a))r%va*
% "(e
HOD
C%!#u'" 3 gr%%$!g
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INDIAN CAPITAL MARKET
Pr/or*a#c a((ra&sa$
S(are(a! be*eve ! $er"%'ra'y. T(ere%re, )r%$%"%!, !'re$e!", 6%b$%ve$e!", !'e!"ves, b%!us re-ar# a!# re'%g!"%! a** are base# %!
)er%r$a!'e a))rasa* % "(e e$)*%yee .)er%r$a!'e a))rasa* "ae )*a'e
%! +uar"er*y bass & a #e"a*e# reve- s u!#er"ae! %! a! a!!ua* bass,
"(ere 'a! be )er%r$a!'e a))rasa* a!# $%!"%r!g %! a $%!"(*y bass as
-e**.
T(ere e$)*%yee 'a! be br%a#*y '*asse# ! "-% 'a"eg%res !a$e*y, sa*es
a!# su))%r". %r s"a "(e '%re 6%b s "% a'(eve "(er "arge" a!# ge" v%*u$e
% bus!ess -('( e
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INDIAN CAPITAL MARKET
ORGANI+ATIONAL STRUCTURE:
INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD. Page 7?
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INDIAN CAPITAL MARKET
PRODUCT PROFILE:
S,ar-,a# D(os&tar% Sr8&cINSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD. Page 7@
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INDIAN CAPITAL MARKET
De$a"era*8a"%! a!# "ra#!g ! "(e #e$a" $%#e s "(e saer a!# as"er
a*"er!a"ve "% "(e )(ys'a* e
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INDIAN CAPITAL MARKET
!"% a! agree$e!" -"( be!e'a* %-!ers. I" s re+ure# "(a" se)ara"e
a''%u!"s s(a** be %)e!e# by every )ar"')a!" ! "(e !a$e % ea'( % "(e
be!e'a* %-!er a!# "(e se'ur"es % ea'( be!e'a* %-!er s(a** be
segrega"e# a!# s(a** !%" be $
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INDIAN CAPITAL MARKET
Everyb%#y "a*s ab%u" $u"ua* u!#s, bu" -(a" e
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INDIAN CAPITAL MARKET
O#$ IPO
O!*!e IPO 4I!"a* Pub*' Oer!g5 s a !e- serv'e s"ar"e# by S(are
(a! %r )r%v#!g "(e a))*'a"%! %r$ % a!y '%$)a!y/s ssues % s(ares
6us" *e "(e TCS ssue 'a! be subs'rbe# by **!g a! %!*!e %r$ "% re#u'e
"(e )a)er -%r a!# "(e u!# "ra!ser a'*"y s a*s% )r%v#e# "% "(e '*e!"s
%r "ra!serr!g "(e u!#s %!*!e. I" s gve! %! "s -eb3s"e %r (e*)!g "(e
'*e!"s -(% are !%" ab*e "% '%**e'" "(e %r$s $a!ua**y a!# "(e s)ee# %
**!g a!# re#u'!g "(e rs % $s)*a'!g % %r$s, !%" rea'(!g ! "$e,
e"'.
O#$ Co**o)&t% Tra)O!*!e '%$$%#"y "ra#!g %ers a -ay %r a! %)e!, $a!y3"%3$a!y
sys"e$, -(ere every user (as e+ua* a''ess "% )r'e +u%"es a!# "ra#!g
u!'"%!a*"y. I" )r%v#es a *eve* )*ay!g e*# %r a**, -"(%u" av%r"s$ %r'%!"r%* by a '(%se! e-, -(ere a!y user 'a! ve- a** +u%"es )%s"e# by
%"(er users ! rea* "$e, a'" %r "ra#e %! +u%"es )%s"e# by %"(ers, )%s" "(er
%-! )r'es a!# +ua!""es %r %"(ers "% "ra#e.
2+u#"y, %r "ra#e a'"v"y, s )er(a)s "(e bes" $easure % su''ess % a!
%!*!e "ra#!g '%$$%#"y "ra#!g sys"e$. :"( $%s" %!*!e '%$$%#"y
"ra#!g sys"e$s, "ra#ers 'a! be sure % !#!g a! !"eres"!g $are"#eve*%)$e!" %r "ra#!g %))%r"u!"y a*$%s" every "$e "(ey *%g %!.
A** +u%"es )%s"e# by users %! a!y %!*!e '%$$%#"y "ra#!g sys"e$s are
*ve a!# r$. T(ey 'a! be a'"e# %! -"( u** assura!'e % a '%$)*e"e#
"ra!sa'"%!.
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T(e grea"es" a#va!"age % a! %!*!e sys"e$ %r "ra#!g s "(a" 6us" a '*'
'a! be use# "% (" a b# %r *" a! %er.
T(e O!*!e "ra#!g sys"e$ %)era"es a*$%s" '%!"!u%us*y ar%u!# "(e '*%',
7? (%urs a #ay, seve! #ays a -ee. T(s a**%-s a!y user "% e
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Pu*ses = C(a!a, U#a#, e**% Peas
Cerea*s = R'e, Bas$a" R'e, :(ea", Ma8e, Sarba" R'e E!ergy =
Cru#e O*
OFFLINE TRADING ACCOUNT
T(e O32!e a''%u!" s "ra#!g a''%u!" "(r%ug( -('( %!e 'a! buy a!#
se** "(r%ug( (sL(er "e*e)(%!e %r by )ers%!a* vs" a" S(are(a! S(%). T(s
aL' s %r "(%se -(% are !%" '%$%r"ab*e -"( '%$)u"er a!# -a!" "% "ra#e.
O*!e AL' s "(e AL' %r "(e !ves"%rs -(% are !%" a$*ar -"( "(e
use % '%$)u"er.
T(e ALC %)e!!g '(arges Rs.? -('( !'*u#es Rs.; %r De$a"
a''%u!" a!# Rs. 1 %r "ra#!g a''%u!" 4O!e "$e5.
ONLINE TRADING ACCOUNT
ALC O)e!!g C(arges Rs.@ 4%!e"$e C(arge5.
F%r 1s"
ear De$a" ALC s Free, O! 7!#
ear AMC '(arge s a))*'ab*e.
Te u) -"( 17 ba!s "(r%ug( -('( %!e 'a! "ra!ser %r -"(#ra- (s
u!# %!*!e. :('( are as %**%-s
1. HDFC Ba! 7. IDBI Ba!
;. UTI Ba! ?. OBC Ba!
@. CITI Ba! . I!#usI!# Ba!
.U!%! Ba! % I!#a . yes ba!. Ba! % Pu!6ab 1. ICICI ba!
11. Ba! % I!#a 17. 'e!"ur%! ba!
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A!y %!e -(% (ave ALC e"(er % ab%ve ba!s "(ey 'a! use "(s a'*"y.
O"(er-se %!e (as "% $ae u!# "ra!ser %r -"(#ra- by '(e+ue.
T(s a''%u!" e!ab*es y%u "% buy a!# se** s(ares "(r%ug( %ur -ebs"e. %u
ge" ea"ures *e
a5 S"rea$!g +u%"es 4us!g "(e a))*e" base# sys"e$5
b5 Mu*")*e -a"'( *s"s
'5 I!"egra"e# Ba!!g, #e$a" a!# #g"a* '%!"ra'"s
#5 I!s"a!" 're#" a!# "ra!ser & !s"a!" %r#er e
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MARKET PROFILE:
T(s re)%r" a!a*y8es "(e I!#a! re"a* br%erage !#us"ry, "a!g !"%
a''%u!" "(e (ea*"( % "(e 'a)"a* $are"s a!# "(e !"e!s"y % '%$)e""%!
a$%!g "(e br%erage '%$)a!es. M'(ae* P%r"ers Fve F%r'es A!a*yss (as
bee! e$)*%ye# "% u!#ers"a!# !#us"ry a""ra'"ve!ess. T(e re)%r" '%vers
a** $)%r"a!" seg$e!"s % "(e !#us"ry a!# a*s% a!a*y8es "(e )reva*!g
$are" #y!a$'s.
T(e I!#a! re"a* br%erage !#us"ry '%!ss"s % '%$)a!es "(a" )r$ar*y
a'" as age!"s %r "(e buy!g a!# se**!g % se'ur"es 4e.g. s"%'s, s(ares,
a!# s$*ar !a!'a* !s"ru$e!"s5 %! a '%$$ss%! %r "ra!sa'"%! ee
bass.
I" (as "-% $a! !"er#e)e!#e!" seg$e!"s= Pr$ary $are" a!# "(e
Se'%!#ary $are".
Ev%*u"%! % "(e Re"a* Br%erage Mare"
I" e
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S%$e % "(e $a! '(ara'"ers"'s % "(e br%erage !#us"ry !'*u#e gr%-"(
! e3br%!g, gr%-!g #erva"ves $are", #e'*!e ! br%erage ees e"'.
F%**%-!g are "(e s%$e '%$)a!es ! "(e re"a* br%erage !#us"res =
1. ICICI Se'ur"es 2"#. 4---.''#re'".'%$5
7. %"a Se'ur"es 2"#. 4---.%"ase'ur"es.'%$5
;. I!#abu**s F!a!'a* Serv'es 2$"e# 4---.!#abu**s.'%$5?. I!#a I!%*!e 4---.@)asa.'%$5
@. I2&FS !ves"$ar" 2$"e# 4---.!ves"s$ar"!#a.'%$5
. SSI 2"#. 4---.s(are(a!.'%$5
. M%"*a* Os-a* Se'ur"es 4---.$%"*a*%s-a*.'%$5
. F%r"s Se'ur"es 4Re*gare5 4---.%r"sse'ur"es.'%$5
. arvy 4---.arvy.'%$5
1. Ge%6" Se'ur"es 4---.ge%6".'%$5
11.HDFC Se'ur"es 4---.(#'se'.'%$517.Re*a!'e M%!ey 4---.re*a!'e$%!ey.'%$5
INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD. Page ;?
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COMPARISON >ITH COMPETITORS:
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INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD. Page ;
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A''%u!" %)e!!g NI2 NI2 NI2 NI2 NI2
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INDIAN CAPITAL MARKET
As r%$ "(e ab%ve gve! '(ar" -e 'a! s"u#y "(a" "(e ees '(arge# bu"
"(e S(are(a! s '%$)ara"ve*y *%- -"( "s '%$)e""%rs ! "(e $are".
S(are(a! )r%v#es au"% )ay !3)ay %u" a'*"y -('( $ea!s !ves"%r#% !%" (ave "% )ay %r "ra!serr!g (s s"%'s r%$ "ra#!g a''%u!" "%
(s res)e'"ve #e$a" a''%u!", " -** "se* -** be "ra!serre# as )er
!ves"%r/s !s"ru'"%!s -"(%u" a!y '(arge. :(*e e- %"(er )*ayers !
$are" are '(arg!g %r "(s a'*"y.
S(are(a! be*eves ! 'us"%$er3re!#*y "ra!sa'"%!s -('( gves
'us"%$er (ass*e ree e!vr%!$e!" %r "ra#!g, (e #% !%" (as "% -%rryab%u" %"(er '(arges "(a" 'a! be (##e! '(arges. O!e % "(e ey su''ess
a'"%r %r S(are(a! *$"e# s 0N% H##e! C(arges, "(ey are '(arge
%!*y -('( "(ey $e!"%!e# -(*e a''%u!" %)e!!g. O"(er g%ver!$e!"
'(arges -** !ves"%r -** )ay -('( s $a!#a"%ry.
S>OT ANALYSIS:INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD. Page ;
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INDIAN CAPITAL MARKET
Dur!g "(s "ra!!g a" S(are(a!, -e (a# '%$e "% !%- "(e
S"re!g"(s 9 :ea!esses 9 O))%r"u!"es 9 T(rea"s %r "(e '%$)a!y
a!# " s very useu* %r a '%$)a!y "% a!a*y8e "(e$. T(ere%re, "(eS:OT a!a*yss s )rese!"e# (ere a!# "(e sugges"%!s %r $a!"a!!g
s"re!g"(s a!# re$%v!g -ea!esses are e
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INDIAN CAPITAL MARKET
O((ortu#&t&s:
2arge )r$ary $are" "% s" as a b%% ru!!er %r "(e %"(er
'%$)a!es 6us" *e %"a se'ur"es *"#.
T(a" ru!s "(e b%%s % s(are (%*#!gs %r $a!y '%$)a!es
S*%)e % s"%' $are" "%-ar#s #e*very base# "ra!sa'"%!s.
2arge )%"e!"a* $are" %r #e*very a!# !"ra3#ay "ra!sa'"%!s.
O)e! !"eres" % "(e )e%)*e "% e!"er ! s"%' $are" %r !ves"!g.
A""ra'" "(e 'us"%$ers -(% are #ssa"se# -"( %"(er br%ers &
DPs.
A! !#re'" %))%r"u!"y ge!era"e# by "(e $are" r%$ "s
bu**s(!ess.
A!%"(er %))%r"u!"y %r S(are(a! *$"e# s "(a", "(ey 'a! ge"
su''ess ! )r%$%"!g e#u'a"%!a* )r%gra$$e -e** %r %!*!e
"ra#!g sys"e$ "(e! "(ey 'a! a""ra'" *arge )%%* % !ves"%rs a!#
"(a" -** $ae -%r % S(are(a! a*s% easy a!# $%re )a)er *ess
-%r 'a! be #%!e, -('( -** be '%s" sav!g ! #a*y bass.
T,rats:
De'reas!g ra"es % br%erage ! "(e $are".
I!'reas!g '%$)e""%! aga!s" %"(er br%ers & DPs.
P%%r $are"!g a'"v"es %r $a!g "(e '%$)a!y !%-! a$%!g
"(e 'us"%$er.
A "(rea" % *%%s!g '*e!"s %r a!y !# % -ea!ess % "(e
'%$)a!y.
I!#re'" "(rea" r%$ !s"ab*e s"%' $are", .e., *%-L!% )r%" %
S(are(a!/s '*e!"s -%u*# *ea# "(e$ "% g% %r %"(er br%erLDP.
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INDIAN
CAPITAL
MARKETINSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD. Page ?
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BACKGROUND:T(e se'ur"es $are" ! I!#a -"!esse# severa* )%*'y !"a"ves
s!'e "(e year 7, -('( ur"(er re!e# "(e $are" $'r%3
s"ru'"ure, $%#er!8e# %)era"%!s a!# br%a#e!e# !ves"$e!" '(%'es
%r "(e !ves"%rs. T(e rregu*ar"es ! "(e se'ur"es "ra!sa'"%! ! "(e
*as" +uar"er % "(e )rev%us !a!'a* year (as"e!e# "(e !"r%#u'"%!
a!# $)*e$e!"a"%! % severa* re%r$s. :(*e a Q%!" Par*a$e!"ary
C%$$""ee -as '%!s""u"e# "% g% !"% "(e rregu*ar"es a!#
$a!)u*a"%!s ! a** "(er ra$'a"%!s ! a** "ra!sa'"%!s re*a"!g "%
se'ur"es, #e's%!s -ere "ae! "% '%$)*e"e "(e )r%'ess %
#e$u"ua*8a"%! a!# '%r)%ra"sa"%! % s"%' e
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Qa! 1; Regu*a"%ry )er$ss%!s %b"a!e# %r badla "ra#!g,
a $e'(a!s$ "% 'arry %r-ar# )%s"%!s.
7 Qa!
1
C%$)u"a"%! % BSE /se!s"ve/ !#e< '%$$e!'e#.
17 A)r
1
SEBI 'rea"e#.
17 F
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INDIAN CAPITAL MARKET
717 Qu*
71
Ma6%r s"%'s $%ve# "% r%**!g se""*e$e!"> s"ar" %
s"%' %)"%!s $are".
A"er "(e ab%ve rev%*u"%! "(e R%**!g se""*e$e!" %! T@ bases -as
!"r%#u'e# ! res)e'" % $%s" a'"ve 7@1 se'ur"es r%$ Qu*y 7, 71.
R%**!g se""*e$e!" %! T; bass '%$$e!'e# %r a** *s"e# se'ur"es
r%$ A)r* 1, 77 a!# subse+ue!"*y %! T7 bass r%$ A)r* 1, 7;.
Tra#!g ! !#e< %)"%!s '%$$e!'e# ! Qu!e 71 a!# "ra#!g !
%)"%!s %! !#v#ua* se'ur"es '%$$e!'e# ! Qu*y 71. Fu"ures
'%!"ra'"s %! !#v#ua* s"%' -ere *au!'(e# ! N%ve$ber 71.Fu"ures a!# %)"%!s '%!"ra'"s %! ? !#v#ua* se'ur"es -ere $a#e
ava*ab*e r%$ Augus" 7;. I!"eres" ra"e u"ures '%!"ra'" -as
*au!'(e# r%$ Qu!e 7;. T(e year 7137 (as bee! +ue" eve!"u*
%r #eb" $are"s ! I!#a, -"( $)*e$e!"a"%! % severa* $)%r"a!"
#e's%!s *e se""!g u) % a '*ear!g '%r)%ra"%! %r g%ver!$e!"
se'ur"es, a !eg%"a"e# #ea*!g sys"e$ "% a'*"a"e "ra!s)are!"
e*e'"r%!' b##!g ! au'"%!s a!# se'%!#ary $are" "ra!sa'"%!s %!
a rea* "$e bases a! #e$a"era*8a"%! % #eb" !s"ru$e!"s. T(ese
#eve*%)$e!"s ! "(e se'ur"es $are", -('( su))%r" '%r)%ra"e
!"a"ves, !a!'e "(e e
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PRODUCTS0 PARTICIPANTS AND FUNCTIONS
Tra!ser % res%ur'es r%$ "(%se -"( #*e res%ur'es "% %"(ers -(%
(ave a )r%#u'"ve !ee# %r "(e$ s )er(a)s $%s" e'e!"*y a'(eve#
"(r%ug( "(e se'ur"es $are"s. Se'ur"es $are"s )r%v#e '(a!!e*s
%r rea**%'a"%! % sav!gs "% !ves"$e!"s a!# e!"re)re!eurs() a!#
"(ereby #e'%u)*e "(ese "-% a'"v"es.
Sav!gs are *!e# "% !ves"$e!"s by a vare"y % !"er$e#ares
"(r%ug( a ra!ge % '%$)*e< !a!'a* )r%#u'"s 'a**e# 0se'ur"es
-('( s #e!e# ! "(e Se'ur"es C%!"ra'"s 4Regu*a"%!5 A'", 1@ "%
!'*u#e s(ares, b%!#s, s'r)"s, s"%'s %r %"(er $are"ab*e se'ur"es
% *e !a"ure ! %r % a!y !'%r)%ra"e '%$)a!y %r b%#y '%r)%ra"e,
g%ver!$e!" se'ur"es, #erva"ves % se'ur"es, u!"s % '%**e'"ve
!ves"$e!" s'(e$e, !"eres" a!# rg("s ! se'ur"es, se'ur"y re'e)"
%r a!y %"(er !s"ru$e!"s s% #e'*are# by "(e 'e!"ra* g%ver!$e!".
T(e a$%u!" % u!#s su))*e# by "(e su))*er $ay !%" be "(e a$%u!"
!ee#e# by "(e user. S$*ar*y, "(e rs, *+u#"y a!# $a"ur"y
'(ara'"ers"'s % "(e se'ur"es ssue# by "(e ssuer $ay !%" $a"'(
)reere!'e % "(e su))*er. I! su'( 'ases, "(ey !'ur subs"a!"a*
sear'( '%s"s "% !# ea'( %"(er. Sear'( '%s"s are $!$8e# by "(e
!"er$e#ares -(% $a"'( a!# br!g "(e su))*ers a!# users % u!#s
"%ge"(er. T(ese !"er$e#ares $ay a'" as age!"s "% $a"'( "(e !ee#s
% users a!# su))*ers % u!#s %r a '%$$ss%!, (e*) su))*ers a!#INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD. Page ??
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INDIAN CAPITAL MARKET
users ! 'rea"%! a!# sa*e % se'ur"es %r a ee %r buy "(e se'ur"es
ssue# by users a!# ! "ur!, se** "(er %-! se'ur"es "% su))*ers "%
b%% )r%". A *arge vare"y a!# !u$ber % !"er$e#ares )r%v#e
!"er$e#a"%! serv'es ! "(e I!#a! se'ur"es $are" as $ay besee! r%$ "ab*e.
T(e se'ur"es $are", "(us, (as "(ree 'a"eg%res % )ar"')a!"s,
!a$e*y "(e ssuers % se'ur"es, !ves"%rs ! se'ur"es a!# "(e
!"er$e#ares a!# "-% 'a"eg%res % )r%#u'"s, !a$e*y "(e serv'es %
"(e !"er$e#ares, "(e se'ur"es, !'*u#!g #erva"ves. T(e ssuers
a!# !ves"%rs are "(e '%!su$ers % serv'es re!#ere# by "(e
!"er$e#ares -(*e "(e !ves"%rs are '%!su$ers % se'ur"es ssue#
by ssuer. I! )ursu" % )r%v#!g a )r%#u'" "% $ee" "(e !ee#s % ea'(
!ves"%rs a!# ssuer, "(e !"er$e#ares '(ur! %u" $%re a!# $%re
'%$)*'a"e# )r%#u'"s. T(ey e#u'a"e a!# gu#e "(e$ ! "(er #ea*!gs
a!# br!g "(e$ "%ge"(er. T(%se -(% re'eve u!#s ! e
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'!P '("$&H )**+
(0.=0%.=(%
4.0% 4.50% 4.40% 4.80% =.)0%
8.=0%
0.00%
8.00%
4.00%
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4
INDIAN CAPITAL MARKET
SCENARIO IN CONTE=T >ITH INDIAN ECONOMY:
A *%g'a* s"ar"!g )%!" ! assess!g a!y e+u"y $are" s "% a!a*y8e
"(e e'%!%$' a'"%rs "(a" ae'" s"%' )r'es. U!#ers"a!#!g "(e 'urre!"a!# u"ure s"a"e % "(e e'%!%$y s "(e rs" s"e) ! u!#ers"a!#!g -(a" s
(a))e!!g a!# -(a" s *e*y "% (a))e! "% "(e $are".
A bas' $easure % "(e e'%!%$y s Gr%ss D%$es"' Pr%#u'" 4GDP5. I"
s a $easure % "(e e'%!%$' (ea*"( a!# s"re!g"( % "(e e'%!%$y.
I!ves"%rs are '%!'er!e# ab%u" -(e"(er "(e e'%!%$y s e
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Global Growth in Working Age
Population (in mn)375
80 7555 45 42
21 18
0
50
100
150
200
250
300
350
400
World
India
Africa
China
South
Asia
Latin
America
West
Asia US
A
Increasing Consuming/Producing
Age Group
=)0 =%5
5) )((
4
8
0
200
400
00
800
1000
1200
1400
2001 201
0!14 15!5" 0#A$o%e
INDIAN CAPITAL MARKET
T(e av%rab*e #e$%gra)('s % I!#a! e'%!%$y ! "er$s % -%r!g
age % )%)u*a"%!, ! "er$s % '%!su$!gL )r%#u'!g age gr%u) as -e** as
"(e gr%-"( % $##*e !'%$e *eve* -** s"re!g"(e! "(e e+u"y $are".
S%ur'e= MSD:
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7&1 &"
2
8& 8&1
14&313&3
10&4
3&4
18&4
14&5
15&"
0
2
4
8
10
12
14
1
18
20
'oads
'ail(a)s
*orts+Air,orts
*o(er
-il#
.as
/elecom
2001!04 2004!07
INDIAN CAPITAL MARKET
S%ur'e= BRIC/s Re)%r" by G%*#$a!! Sa'(s
REVOLUTION OF INDIAN ECONOMY
T(ere (as bee! a "re$e!#%us "ra!s%r$a"%! % "(e I!#a! E'%!%$y
-"( "(e g%ver!$e!" "a!g a (%*s"' ve- % "(e a'"%rs $)a'"!g
gr%-"(, %reg! !ves"$e!" a!# !"egra"%! % I!#a -"( "(e :%r*#E'%!%$y. T(e !ras"ru'"ure s)e!#!g (as bee! %! a (g(.
COMPARISON OF INFRASTRUCTURE SPENDING OF LAST SI= YEARIN @ BN";
S%ur'e= Merr** 2y!'(
G%ver!$e!" "%% (as *!e# u) $a6%r !ras"ru'"ure )r%6e'"s *e "(e
g%*#e! +ua#r*a"era*, !e- )%-er )*a!"s, ar)%r"s, )%r"s e"'. T(e "%"a
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INDIAN CAPITAL MARKET
!ves"$e!" ! "(e '%u!"ry s "% !'rease r%$ 17 b**%! 4Rs. @, 7,
'r%res5 ! 7? "% 7 b**%! 4Rs. , 1@, 7 'r%res5 by 7.
I!ves"%rs re*y (eav*y %! "(e !a!'a* s"a"e$e!"s % a '%r)%ra"%!,
-('( )r%v#e "(e $a6%r !a!'a* #a"a ab%u" '%$)a!es. T(e ba*a!'e
s(ee" % "(e '%$)a!y s (e!'e a bas' s"a"e$e!" ab%u" "(e !a!'a*
(ea*"(. I -e a!a*y8e "(e '%r)%ra"e ba*a!'e s(ee"s %ver "(e years, -e !#
"(a" I!#a! '%r)%ra"e (ave $%re s"r%!ger ba*a!'e s(ee" a!# "(s ue**!g
"(er aggress%! as "(ey a$ "% !'rease "(er '%r)%ra"e a'+us"%!s.
:"( "(e re'e!" bu#ge" "(ere (as bee! s%$e $%re ra"%!a*8a"%! %
'%r)%ra"e "a< ra"e s"ru'"ure. :"( "(e !"r%#u'"%! % ur"(er "a< re%r$s
re*a"e# "% e+u"y $are", "(e #%$es"' !ves"%rs '%!"!ue "% *%% a"
e+u"es as a av%rab*e !ves"$e!" ave!ue, b%"( ! "er$s % ge!era"!g
'%!ss"e!" re"ur!s a!# sav!g "a
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INDIAN CAPITAL MARKET
PROBLEMS IN INDIAN CAPITAL MARKET
T(e I!#a! s"%' $are" s suer!g r%$ $a!y )r%b*e$s. S%$e %
"(e $)%r"a!" %!es are "(e %**%-!g=
Lac- o/ K#o2$)6 ' T#)#c%
I! I!#a, (av!g very *arge a$%u!" % !ves"%rs bu" $a!*y %r $%s"*y
"(e !ves"%rs ee) a-ay r%$ "(e 'a)"a* $are" #ue "% *a' % !%-*e#ge
% 'a)"a* $are", ear % "a!g rs. T(us, I!#a! s"%' $are" suer!g
r%$ $a!y *$"a"%!s=
A.s#c o/ G#u I#8stors
As " s, s)e'u*a"ve a'"v"es %u")*ay "(e ge!u!e "ra#!g a'"v"es.
ery !eg*gb*e ra'"%! % "ra!sa'"%!s re)rese!"s )ur'(ases %r sa*es by
ge!u!e !ves"%rs. M%s" % "(e "ra!sa'"%! s 'arry %r-ar# "ra!sa'"%!s
-"( a s)e'u*a"ve $%"ve % #erv!g be!e" r%$ s(%r" "er$ )r'e
*u'"ua"%!s. S)e'u*a"%rs are %!*y !"eres"e# ! "a!g a be" %! "(e s"%'
a!# )r%"!g r%$ "s )r'e s-!gs. A*$%s" @ )er 'e!" % "(e "%"a* v%*u$e
s '%!"rbu"e# by s)e'u*a"%rs.
Prs#c o/ Pr&c1R&66
T(ere s a "e!#e!'y a$%!g '%$)a!es ssu!g se'ur"es "% ar"'a**y
)us( u) "(e )r'es be%re "(e ssue % se'ur"es. T(s s ge!era**y #%!e by
buy!g a!# se**!g se'ur"es by a e- gr%u)s % )ers%!s a$%!g
"(e$se*ves a!# "(ereby )us(!g "(e )r'es u). T(ere s a s"r%!g bu*
$%ve$e!" ! "(e $are".INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD. Page @
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INDIAN CAPITAL MARKET
Pr8a$#c o/ I#s&)r Tra)
I!s#er "ra#!g (as bee! a''e)"e# as a r%u"!e )ra'"'e ! I!#a.
I!s#ers are "(%se -(% (ave a''ess "% u!)ub*s(e# )r'e se!s"ve
!%r$a"%! by vr"ue % "(er )%s"%! ! "(e '%$)a!y a!# -(% use su'(
!%r$a"%! ! "(er bes" a#va!"age. He!'e " s a! u!#esrab*e a'"v"y.
H&6, Vo$at&$&t% o/ Stoc- Mar-t
T(e I!#a! s"%' $are" s sub6e'" "% (g( v%*a"*"y ! re'e!" years.
T(e A** I!#a I!#e< !u$ber % se'ur"y )r'es -as s"ea#y a" be"-ee!
"(e )er%# 1 a!# 7. H%-ever, " -as sub6e'" "% (eavy *u'"ua"%!s
a"er-ar#s. T(s (g( ra"e % v%*a"*"y s !%" '%!#u've %r "(e s$%%"(
u!'"%!!g % "(e s"%' $are".
Do*a#c o/ Fa#c&a$ I#st&tut&o#s
Fe- !a!'a* !s""u"%!s *e "(e Mu"ua* Fu!#s, 2IC a!# GIC #%$!a"e
"(e I!#a! s"%' $are" s'e!e. He!'e, "(e I!#a! s"%' $are" s
sg!'a!"*y !*ue!'e# by "(e a'"%!s % "(ese e- !s""u"%!s. I" a'"ua**y
re#u'es "(e *eve* % '%$)e""%! ! "(e s"%' $are" -('( s !%" a (ea*"(y
"re!# %r "(e gr%-"( % a!y s"%' $are".
FIIs Co#tro$ o8r t, Mar-t
2e "(e !a!'a* !s""u"%!s "(e FIIs a*s% *ea# "(e I!#a! s"%' $are". As
)er "(e )r%6e'"%! I!#a -** be'%$e %!e % "(e *arges" e'%!%$y % "(e
-%r*# base# %! "s s"r%!g e'%!%$' a!# #e$%gra)(' a'"%r. As a resu*" %
"(s FIIs a!# %"(er !ves"%rs are a""ra'"e# "%-ar#s I!#a. As a resu*" "(e FIIs
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INDIAN CAPITAL MARKET
"a!g I!#a/s $are" a" a !e- (g(, bu" " s very $)%r"a!" "% !%- "(a"
(%- *%!g "(ey are !ves"!g ! I!#a be'ause % a su##e! '(a!ge "(e
I!#a! $are" '%**a)se#.
SCENARIO IN CONTE=T >ITH GLOBALECONOMY:
Re%r$s ! "(e se'ur"es $are", )ar"'u*ar*y "(e es"ab*s($e!" a!#
e$)%-er$e!" % SEBI, $are" #e"er$!e# a**%'a"%! % res%ur'es,
s'ree! base# !a"%! -#e "ra#!g, #e$a"era*8a"%! a!# e*e'"r%!'
"ra!ser % se'ur"es, r%**!g se""*e$e!" a!# ba! %! #eerra* )r%#u'"s,s%)(s"'a"e# rs $a!age$e!" a!# #erva"ves % "ra#!g a!#
se""*e$e!". I!#a! $are" s !%- '%$)arab*e "% $a!y #eve*%)e#
$are"s ! "er$s % a !u$ber % +ua*"a"ve )ara$e"ers.
T(e !e
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C"MPA(IS"# LIS&! C"MPA#IS I#
P(C#&A'
=0
)
(04(=
=
4(
:S3
:K
B3P3
;,#!3A
SI;3P9#,
*9;K9;
+*I3
I6I3
INDIAN CAPITAL MARKET
Mare"
Ca). 4$!5
1,;@11?
,
7,;;,7
?,@?,;
1,?;7,1
1,? , ;;,
;
7,1
Mare"
Ca).Ra"%
71 7;7 111 7 ;@ ; @
Tur!%ver
4$!5
1,@?,1
1,;,@
1,?,77
1,;@,?
1
,@ 7??, ;,
?,;
Tur!%ver
Ra"% 45
17? @7 @; 1 @1 1;?.7 7?@
As $ay be see! r%$ "ab*e e
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C"MPA(IS"# "F &,(#"-( (A&I"
84%
(%
)%(%
4%
5%
)%
(% :S3
:K
B3P3
;,#!3A
SI;3P9#,
*9; K9;
+*I3
I6I3
INDIAN CAPITAL MARKET
T(e "ab*e s(%-s y%u "(e !"er!a"%!a* '%$)ars%! ! var%us -ays, "(e sa$e
"(!g are s(%-! ! be*%- '(ar"s ! )er'e!"age )%!" % ve-, "(e rs" '(ar" s(%-s
"(e r%u!# ab%u" ?1 % *s"e# '%$)a!es ! "(e I!#a -('( s grea"er "(a! USA.
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INDIAN CAPITAL MARKET
INDIAN STOCK MARKET AND GLOBALI+ATION
I!#a! S"%' $are" (as -"!esse# #ras"' '(a!ges #ur!g "(e )as"
#e'a#e #ue "% "(e br%a# s"%' $are" *bera*8a"%! $easures.
De$a"era*8a"%! % s(ares a!# se""!g u) '*ear!g (%uses (as
vr"ua**y e*$!a"e# "(e rss !v%*ve# ! "ra#!g. S$*ar*y ra)#
s"r#es -ere $a#e ! se""*e$e!" )r%'e#ures, '%r)%ra"e g%ver!a!'e
s"a!#ar#s, !"r%#u'"%! % #erva"ve )r%#u'"s e"'.
GLOBALI+ATION
T(e I!#a! S"%' Mare" "(%ug( %!e % "(e %*#es" ! Asa be!g !
%)era"%! s!'e 1@, re$a!e# *arge*y %u"s#e "(e g*%ba* !"egra"%!
)r%'ess u!"* "(e *a"e 1s. A !u$ber % #eve*%)!g '%u!"res !
'%!'er" -"( "(e I!"er!a"%!a* F!a!'e C%r)%ra"%! a!# "(e :%r*#
Ba! "%% s"e)s ! "(e 1s "% es"ab*s( a!# rev"a*8e "(er s"%'
$are"s as a! ee'"ve -ay % $%b*8a"%! a!# a**%'a"%! % !a!'e.
I! *!e -"( "(e g*%ba* "re!#, re%r$ % "(e I!#a! S"%' Mare" bega!
-"( "(e es"ab*s($e!" % Se'ur"es a!# E
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INDIAN CAPITAL MARKET
Na"%!a* Se'ur"es C*ear!g C%r)%ra"%! ! A)r* 1 a!# Na"%!a*
Se'ur"es De)%s"%ry ! N%ve$ber 1, a s'ree! base#,
a!%!y$%us, %r#er #rve! %!*!e #e$a"era*8e# "ra#!g (as bee! "(e
%r#er % "(e #ay '%u)*e# -"( $)r%ve# rs $a!age$e!" )ra'"'es%r '*ear!g a!# se""*e$e!".
T(e )r%'ess % !"egra"%! re'eve# a $a6%r $)e"us -(e! "(e I!#a!
'%r)%ra"e -as a**%-e# "% g% g*%ba* -"( GDR 4G*%ba* De)%s"%ry
Re'e)"5 LADR4A$er'a! De)%s"%ry Re'e)"5 ssues. S"ar"!g -"(
$a#e! ssue % I!%sys ! Mar'( 1, ADR ssues (as e$erge# as
"(e s"ar a""ra'"%! #ue "% "s (g(er g*%ba* vsb*"y. T** #a"e, ar%u!#
17 I!#a! '%$)a!es (ave "ae! a#va!"age % "(e US $are" a!#
'%$)a!es (ave 'a)"ure# "(e g*%ba* $are". I! Mar'( 71, "-%3-ay
u!gb*"y %r I!#a! GDRLADRs -as !"r%#u'e# -(ereby '%!ver"e#
*%'a* s(ares '%u*# be re'%!ver"e# !"% GDRLADR sub6e'" "% se'"%ra*
'a)s.
GLOBAL INVESTMENT
I!#a e$bare# %! e'%!%$' re%r$s "% "ra!s%r$ "(e '%!"r%**e#
e'%!%$y !"% $are" #rve! %!e. T(s !'*u#e# "(e !a!'a
*bera*8a"%! s"ra"eges *e #s$a!"*!g % 'a)"a* '%!"r%*s, re%r$s !
"ra#e a!# !ves"$e!" )%*'es a!# s% %! "% !"egra"e "(e I!#a!
F!a!'a* Mare"s -"( "(e g*%ba* !a!'a* $are"s. A** "(ese re%r$s
%)e!e# "(e *%%#ga"es "% %reg! 'a)"a* *%-s !"% "(e '%u!"ry. T(e
"%"a* !e" 'a)"a* *%-s (ave rse! "% US 17.1 b**%! ! 7@3 r%$
US .1 b**%! ! 131. T(e 'r%ss b%r#er *%-s are averag!g
ar%u!# US 1 b**%! every year 'urre!"*y. 2e e*se-(ere ! "(eINSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD. Page @
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INDIAN CAPITAL MARKET
g*%be, "(e !a"ure % 'a)"a* *%-s (as '%$e "% '%!s""u"e a (g(er
)er'e!"age % "(e "%"a* 'a)"a* *%-s. T(e ra"% % !%!3#eb" 'rea"!g
!*%-s "% #eb" 'rea"!g !*%-s -as 1.@ "% ;.; ! 131 as aga!s"
??. "% 3. ! 7@3.
COMPOSITION OF CAPITAL FLO>S TO INDIA
4US M**%!5
Yar
Tota$ #t
Ca(&ta$ /$o2
FDI
F$o2
as a
5 o/
TCF
Port/o$&o
E7u&t%
/$o2s
As a 5 o/
TCF
D.t
Crat
6
F$o2s
as a
5 o/TCF
Ot,rs
As a 5 o/
TCF
13
1@ 1.? .1 ;.; [email protected]
13
1??? 7. 7. 7;.1 7.7
73
111 ?.7 7. @.? 37.7
73
17; ;. . 3. 7.
S%ur'e= Reserve Ba! % I!#a A!!ua* Re)%r" 73
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INDIAN CAPITAL MARKET
T(e )%r"%*% *%-s (ave bee! %!e % "(e $a6%r %r'es "(a" (ave
'(a!ge# "(e +ua!"u$ a!# !a"ure % !"er!a"%!a* 'a)"a* *%-s "%
I!#a. P%r"%*% *%-s !'*u#e "(e !ves"$e!" ! ADRs LGDRs a!#
%s(%re u!#s ! a##"%! "% !ves"$e!" by F%reg! I!s""u"%!a
I!ves"%rs 4FIIs5. F%reg! )%r"%*% !ves"$e!"s (ave bee! a**%-e# !
I!#a %! "(e bass % "(e re'%$$e!#a"%!s % "(e Naras$(a$
'%$$""ee.
Pr%r "% 17, %!*y !%!3res#e!" I!#a!s 4NRIs5 a!# Overseas
C%r)%ra"e B%#es 4OCBs5 -ere a**%-e# "% u!#er"ae "(e )%r"%*%
!ves"$e!" ! I!#a. O!*y %! Se)"e$ber 1?, 17 "(e G%ver!$e!" %
I!#a ssue# gu#e*!es %! FII !ves"$e!"s ! I!#a -('( -as %**%-e#
by a !%"'a"%! by Se'ur"es a!# E
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INDIAN CAPITAL MARKET
'*%se "% US 1.7 b**%! )er year %! a! average s "(e s(are % FIIs.
T(e 'u$u*a"ve FII !ves"$e!" ! I!#a s ar%u!# US 1 b**%! a!#
"(e FII !ves"$e!" ! I!#a a''%u!" %r %ver 1 )er'e!" % "(e "%"a*
$are" 'a)"a*8a"%! % "(e I!#a! S"%' $are".
FII INVESTMENT IN INDIA
4US $**%!5
Yar
Tota$
Port/o$&o
/$o2s
FII
I#8st*
#t
GDRs
ADRs
O//s,
or
/u#)s
173
;7?? 1 7? ;
13
;7 71;@ 17;
73 7 1? ;1 7
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INDIAN CAPITAL MARKET
1
713
7771 1@@ ? ;
73
; 7
S%ur'e= Reserve Ba! % I!#a A!!ua* Re)%r" 73
T(e !ves"$e!"s by FIIs (ave bee! regs"er!g a s"ea#y gr%-"( s!'e
"(e %)e!!g % "(e I!#a! 'a)"a* $are"s ! Se)"e$ber 17. T(a"
"(s "re!# (as '%$e "% s"ay s ev#e!" r%$ "(e a'" "(a" "(e FIIs
!ves"$e!"s a$%u!"e# "% %ver b**%! %r "(e )er%# % 'a*e!#ar
7. T(e be*%- "ab*e ur"(er base# %! "(e !ves"$e!" ! "%"a*
)%r"%*% !ves"$e!" !*%-s (ave a*-ays (ave bee! "(e !'rease.
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INDIAN CAPITAL MARKET
TRENDS IN FII INVESTMENT
Pr&o) Gross
Purc,a
ss
Rs"cror
;
Gross
Sa$s
Rs"cro
r;
Nt
I#8st*#t
Rs"cror
;
Nt
I#8st*#t
US
@*&$$&o#;
Cu*u$at&8
Nt
I#8st*#t
US
@*&$$&o#;
1? ;1 7;@ ? 1@7 ;1
1 1@@@? @@ 7?;7 ;?
1 111@ 1 31@? 3;
7 ?@1 ?11 ;? 71 1;;
7? ? ??;1 7 @7 1@?
7 1??@ ? ?@@ ? 7@@?
S%ur'e= SEBI A!!ua* Re)%r" 73
T(e FIIs (%*# .17 )er 'e!" % "(e "%"a* %u"s"a!#!g s(ares % "(e ?
'%$)a!es s"u#e# as % Se)"e$ber 7, e$erg!g as "(e bgges"
!s""u"%!a* !ves"%r, a(ea# % "(e $u"ua* u!#s, #%$es"' !a!'a*
!s""u"%!s a!# "(e )rva"e '%r)%ra"e b%#es. I! a! %vera** ra!!g
"(ey %''u)y "(e "(r# )%s"%! a"er "(e )r%$%"ers a!# "(e I!#a!
)ub*' (%*#!g (g(er *eve*s % !ves"$e!" "(a! FIIs.
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INDIAN CAPITAL MARKET
SHARE HOLDING PATTERN
Cat6or% Tota$ S,ar
Outsta#)
Rs";
5 o/
S,ar
H$)
Pr%$%"ers 77@@1 ?7.7
Mu"ua* Fu!#s 17;@? .1
D%$es"' F!a!'a*
I!s""u"%!
7@?;7; 1@.
FIIs ;71 1.
Prva"e C%r)%ra"e
B%#es
@?7 ;.?
I!#a! Pub*' 1@7@17 .;
NRIsLOCBs ??7; .7
O"(ers ;?@1 7.1?
T%"a* 17?1??1 1
T(e ab%ve "ab*e s(%-s "(e FIIs (%*#!g %ver "(e I!#a! se'ur"y
$are", -('( says "(a" FIIs are "(e %!e % "(e *arge !ves"%rs !
I!#a! se'ur"y $are". T(e FIIs (%*#!g s "(e "(r# (g(es" ! "(e
%vera** (%*#!g ! I!#a! se'ur"y $are".
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FIIs (%*# s"aes ! a "(r# % a** *s"e# '%$)a!es ! I!#a. Da"a
regar#!g (%*#!g )a""er! *e# by 7,@ *s"e# '%$)a!es -"( "(e
B%$bay S"%' E
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T(e FIIs (ave bee! "(e *arges" s(are(%*#er ! H%us!g Deve*%)$e!"
F!a!'e C%r)%ra"%! a!# %**%-e# by "(e %"(ers=
H%us!g Deve*%)$e!" F!a!'e C%r)%ra"%! ?.7 Sa"ya$ C%$)u"er Serv'es @;.
ICICI Ba! [email protected]?
SB&T I!"er!a"%!a* ?.;?
I!%sys Te'(!%*%ges ;.1
ee Te*e*$s ;.
T(e *s" % '%$)a!es ! -('( "(ey (ave a'+ure# subs"a!"a* s"aes
re'e!"*y !'*u#es Graba* A*% I$)e< 7.71, G%*#s"%!e Te*eserv'es 7,
ab(av Ge$s 1.1 a!# Saber% Orga!'s 1;., -('( (a# !% FII
)rese!'e a year ba'.
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EFFICIENT
MARKETHYPOTHESIS
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EFFICIENT MARKET HYPOTHESIS:A $are" s e'e!" -"( res)e'" "% a )ar"'u*ar se" % !%r$a"%! "
s $)%ssb*e "% $ae ab!%r$a* )r%"s 4%"(er "(a! by '(a!'e5 by us!g
"(s se" % !%r$a"%! "% %r$u*a"e buy!g a!# se**!g #e's%!s.
EMH (as bee! "(e sub6e'" % !"e!se #eba"e a$%!g a'a#e$'s a!#
!a!'a* )r%ess%!a*s. I" s a -%r*# ! -('( 415 a** !ves"%rs (ave '%s"*ess
a''ess "% 'urre!"*y ava*ab*e !%r$a"%! ab%u" "(e u"ure, 475 a** !ves"%rs
are 'a)ab*e a!a*ys"s, a!# 4;5 a** !ves"%rs )ay '*%se a""e!"%! "% $are"
)r'es a!# a#6us" "(er (%*#!gs a))r%)ra"e*y. I! su'( a $are" a
se'ur"y/s )r'e s a g%%# !#'a"%r % "s !ves"$e!" va*ue, ar va*ue %r
!"r!s' va*ue, -(ere! " s "(e )rese!" va*ue % "(e se'ur"y/s u"ure
)r%s)e'"s, as es"$a"e# by -e**3!%r$e# a!# s**u* a!a*ys"s -(% use "(e
!%r$a"%! "(a" s 'urre!"*y a" (a!#. T(a" s, a! e'e!" $are" s %!e !
-('( every se'ur"y/s )r'e e+ua*s "s !ves"$e!" va*ue a" a** "$es a!# s
a! u!base# es"$a"e % "s "rue va*ue.
C%!"rary "% )%)u*ar ve-, $are" e'e!'y #%es !%" re+ure "(a" "(e
$are" )r'e be e+ua* "% "(e "rue va*ue a" every )%!" % "$e. A** "
re+ures s "(a" err%rs ! "(e $are" )r'e be u!base#, "(a" s, )r'es 'a!
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be grea"er "(a! %r *ess "(a! "rue va*ue as *%!g as "(ese #eva"%!s are
ra!#%$.
I! a! e'e!" $are" a se" % !%r$a"%! s u**y a!# $$e#a"e*y
re*e'"e# ! $are" )r'es. H%-ever, "(e g%a* (as a*-ays bee! "%
e!'%urage "(e es"ab*s($e!" % a**%'a"%!a**y e'e!" $are"s ! -('( a!
!ves"%r -"( "(e $%s" )r%$s!g !ves"$e!" %))%r"u!"es (as a''ess "%
"(e !ee#e# u!#s. H%-ever, ! %r#er %r $are"s "% be a**%'a"%!a**ye'e!", "(ey !ee# "% be b%"( !"er!a**y a!# e
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INDIAN CAPITAL MARKET
EMH ev%*ve# ! "(e ear*y 1s r%$ "(e P(D #sser"a"%! % Euge!e
Fa$a. Fa$a )ersuasve*y $a#e "(e argu$e!" "(a" ! a! a'"ve $are"
"(a" !'*u#es $a!y -e**3!%r$e# a!# !"e**ge!" !ves"%rs, se'ur"es -**
be a))r%)ra"e*y )r'e# a!# re*e'" a** ava*ab*e !%r$a"%!. I a $are" s
e'e!", -(ere *arge !u$ber % ra"%!a*, )r%" $a
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T,r I*(orta#t C$ass&/&cat&o#s o/ EMH
4a5 >a- For*:
:ea F%r$ EMH s"a"es "(a" )rev%us )r'es % se'ur"es %r (s"%r'a*
#a"a are use# "% $ae buy!g a!# se**!g #e's%!s. T(e sg!'a!"
'%!'*us%! #erve# r%$ -ea3%r$ (y)%"(ess s "(a" )as" ra"es % re"ur!
a!# a!y %"(er se'ur"yL $are" !%r$a"%! s(%u*# (ave !% re*a"%!s()
-"( u"ure s"%' )r'es %r u"ure ra"es % re"ur!. I! %"(er -%r#s, Te'(!'a*A!a*yss s % !% use.
Ear*y "es"s % -ea %r$ $are" e'e!'y a*e# "% !# a!y ev#e!'e
"(a" ab!%r$a* )r%"s '%u*# be ear!e# "ra#!g %! !%r$a"%! re*a"e# "%
)as" )r'es. M%re re'e!" s"u#es, (%-ever, (ave !#'a"e# "(a" !ves"%rs
$ay u!#er rea'" "% 'urre!" "y)es % !%r$a"%! ! "(e s(%r" "er$, bu"
%verrea'" ! "(e *%!g "er$, #rv!g se'ur"y )r'es a-ay r%$ "(s
!ves"$e!" va*ues. As a resu*", " $ay be )%ssb*e "% ear! ab!%r$a* )r%"s
by buy!g e"(er se'ur"es "(a" (ave re'e!"*y rse! ! )r'e %r "(%se "(a"
(ave a**e! ! )r'e %ver a *%!ger "$e )er%#. T(ese "-% s"ra"eges are
!%-! as $%$e!"u$/ a!# '%!"rara!s/ s"ra"eges res)e'"ve*y.
4b5 S*& Stro#6 For*:
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Se$ s"r%!g %r$ EMH s"a"es "(a" s"%' )r'es u**y re*e'" a** )ub*'*y
ava*ab*e !%r$a"%! a" "s bes" a!# +u'es". Usua**y, -(e! "a*e# ab%u"
e'e!" $are"s, se$ s"r%!g %r$ % e'e!" $are"s s $ea!", be'ause
% "(e s"r'" *a-s g%ver!!g "(e use % !s#er !%r$a"%! 4a %r$ %)rva"e !%r$a"%!5 "% $ae buy!g a!# se**!g #e's%!s, as "(a" !v%*ves
res"r'"!g "(e a!a*yss "% "(e )ub*'*y ava*ab*e !%r$a"%! "(a" a!a*ys"s
use ! $a!g re'%$$e!#a"%!s. H%-ever, )ub*' !%r$a"%! a*s%
!'*u#es a** !%!3$are" !%r$a"%! su'( as !e-s ab%u" "(e !#us"ry %r
var%us e'%!%$es, "(e 'urre!" )%*"'a* s"a"e abr%a#, e"'.
T(e $)*'a"%! % se$ s"r%!g %r$ EMH s "(a" !ves"%rs s(%u*# !%"be ab*e "% #erve ab%ve average ra"es % re"ur! r%$ )ub*' !%r$a"%!. I!
%"(er -%r#s, u!#a$e!"a* a!a*yss s % !% use.
A !u$ber % "es"s (ave bee! '%!#u'"e# "% very "(e se$ s"r%!g
%r$ % EMH -"( "(e $a6%r"y % "es"s )r%v#!g $
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c; Stro#6 For*:
S"r%!g %r$ EMH sugges"s "(a" a** !%r$a"%!, b%"( )ub*' a!#
)rva"e (as bee! #s'%u!"e# ! "(e e'e!" $are"s, -(ere " -%u*# be$)%ssb*e "% ear! ab!%r$a* )r%"s 4%"(er "(a! by '(a!'e5 by us!g
!%r$a"%! -(a"s%ever. I" e!'%$)asses b%"( -ea %r$ a!# se$ s"r%!g
%r$ a!# $)*es "(a" !% %))%r"u!"es s(%u*# e
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S"r%!g F%r$= A** Pub*' &
Prva"e I!%r$a"%!
Se$ S"r%!g= A** )ub*'
I!%r$a"%!
:ea
F%r$=Pas"
Pr'es
INDIAN CAPITAL MARKET
I#/or*at&o# a#) t, L8$s o/ Mar-t E//&cc%
Scur&t% Pr&c C,a#6s ar Ra#)o*
Ne-, $ea!!g a Sur)rse. A!y"(!g "(a" s !%" a sur)rse s
)re#'"ab*e a!# s(%u*# (ave bee! a!"')a"e#> (e!'e " s %*# !%r$a"%!.
A se'ur"y/s )r'e s(%u*# $%ve u)-ar# by a! a$%u!" "(a" )r%v#es areas%!ab*e re"ur! %! 'a)"a*, %r #v#e!# )ay$e!"s, bu" a!y"(!g ab%ve %r
be*%- su'( a! a$%u!" -%u*#, ! a! e'e!" $are", be u!)re#'"ab*e.
:(a" (a))e!s -(e! !e- !%r$a"%! arrves, su'( as a! a!!%u!'e$e!"
"(a" a '%$)a!y/s ear!!gs (ave e
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Pr'e '(a!ges are ra!#%$ ! a )ere'"*y e'e!" $are", bu" "(s
ra!#%$!ess #%es !%" $ea! "(a" )r'es are rra"%!a*. As a *%- %
!%r$a"%! arrves ra!#%$*y, '(a!ges ! )r'es "(a" %''ur as a
'%!se+ue!'e % "(a" *%- -** see$ ra!#%$, be!g s%$e"$es )%s"ve a!#s%$e"$es !ega"ve. H%-ever, )r'e '(a!ges are s$)*y "(e resu*" %
!ves"%rs/ reassess!g a se'ur"y/s )r%s)e'"s a!# a#6us"!g "(er buy!g
a!# se**!g a))r%)ra"e*y. He!'e, )r'e '(a!ges are ra!#%$ bu" ra"%!a*.
I! a #eve*%)e# a!# ree $are", $a6%r #s)ar"es be"-ee! )r'e a!#
!ves"$e!" va*ue are !%"e# by a*er" a!a*ys"s -(% see "% "ae a#va!"age
% "(er #s'%veres. Se'ur"es )r'e# be*%- !ves"$e!" va*ue !%-! as
u!#er )r'e# %r u!#erva*ue# se'ur"es -** be )ur'(ase#, 'rea"!g
)ressure %r )r'e !'reases 'ause# by "(e !'rease# #e$a!# "% buy.
Se'ur"es )r'e# ab%ve !ves"$e!" va*ue, !%-! as %ver)r'e# %r
%verva*ue# se'ur"es -** be s%*#, 'rea"!g )ressure %r )r'e #e'reases
'ause# by "(e !'rease# su))*y "% se**. As !ves"%rs see "% "ae
a#va!"age % %))%r"u!"es 'rea"e# by "e$)%rary !e'e!'es, "(e
!e'e!'es are re#u'e#, a!# "(e *ess a*er" a!# *ess !%r$e# (ave a *ess
'(a!'e "% %b"a! *arge ab!%r$a* )r%"s.
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INDIAN CAPITAL MARKET
TESTING THE EMH
T% #e"er$!e $are"s a'"ua**y are )ere'"*y e'e!", reas%!ab*y
e'e!" %r !%" e'e!" a" a**, "(ere are $u*""u#e % $e"(%#%*%ges
ava*ab*e, % -('( %**%-!g "(ree s"a!# %u"=3
A; E8#t Stu)&s
Eve!" s"u#es 'a! be )er%r$e# "% #e"er$!e (%- as" se'ur"y )r'es
a'"ua**y rea'" "% "(e re*ease % !%r$a"%!. As a! e
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N%"e "(a" ! b%"( "(e 'ases "(e (%r8%!"a* a
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T V 11"( Qu*y, 711;7@Pr&c
Rs"
TV 1"( Qu*y, 7@?@@@Pr&c
Rs"
INDIAN CAPITAL MARKET
Fgure31.7
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T&*F&6ur ": Arr&8a$ o/ Goo) N2s
a.out acc
T&*F&6ur "!: Arr&8a$ o/ Ba) N2s
a.out >IPRO
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B; Loo- /or Pattr#s
A se'%!# $e"(%# "% "es" %r $are" e'e!'y s "% !ves"ga"e
-(e"(er "(ere are a!y )a""er!s ! se'ur"y )r'e $%ve$e!"s a""rbu"ab*e
"% s%$e"(!g %"(er "(a! -(a" %!e -%u*# e
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T(e "(r# a))r%a'( %r "es"!g $are" e'e!'y s "% e
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RESEARCH
ANALYSIS
1AUTOMOBIL
E INDUSTRY
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T(e I!#a! au"%$%"ve !#us"ry (as bee! -"!ess!g #y!a$' gr%-"(
%ver "(e years.
T(e I!#a! "-%3-(ee*er I!#us"ry s %!e % "(e *arges" ! "(e -%r*#,
a!# s e
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4&3
5&35&7
&7 7&1 7&1
7&2 7&3 7&4
0
1
2
3
4
5
7
8
China
0e1ico
2orea
/i(an 3a,
an
4on56on5
.erman) Ind
ia USA
Sin5a,
ore
>= 0.04 (= 80
=) 4( 5
1= )=
=15
>50
0
50
(00
(50
800
850
=00=50
400
B3P3
4
,$rs Mar-t0 O# o/ t, Lar6st t, >or$) a#) St&$$
Gro2
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I!#a re)rese!"s %!e % "(e *arges" "-%3-(ee*er $are"s ! "(e -%r*#,
-"( a! es"$a"e# s8e % @.? $**%! u!"s a year. T-%3-(ee*ers are use#
e,$r Mar-t
4A)r* 7 3 Mar'( 75
S%ur'e= SIAM
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BAJAJ AUTO
Co*(a#% Dscr&(t&o#Ba6a6 Au"% s "(e se'%!# *arges" "-% -(ee*er $a!ua'"urer ! I!#a.
I"s )r%#u'" )%r"%*% !'*u#es s'%%"ers, $%)e#s, $%"%r'y'*es a!# "(ree
-(ee*ers. A! ers"-(*e s'%%"er '%$)a!y, Ba6a6 Au"% (as re!ve!"e# "se*
by !!%va"e "s )r%#u'" )%r"%*% "% be'%$e "(e se'%!# *arges" $%"%r'y'*e
$a!ua'"urer ! I!#a. :"( "(e %)e!!g u) % "(e !sura!'e se'"%r, "(e
'%$)a!y (as e!"ere# !"% 6%!" ve!"ure agree$e!"s -"( A**a!8 AG,
Ger$a!y.
K% I#8st*#t Ar6u*#tsT(e '%$)a!y (as sg!'a!"*y !'rease# "s $are" s(are ! "(e
$%"%r'y'*e seg$e!" by ;b) ! F. :"( a s"r%!g )%r"%*% %
$%"%r'y'*es, -e be*eve Ba6a6 Au"% -** '%!"!ue "% be!e" r%$ "(e
v%*u$e gr%-"( ! "(e $%"%r'y'*e !#us"ry.
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I!'reas!g '%$)e""%! ! "(e e
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Pr/or*a#c Gra(, o/ t, Co*(a#%
0
800
400
00
)00
(000
(800
3pr>0 !a">
0
Bun>0 Bul>0 3ug>0 Sep>0 9ct>0 ov>0 6ec>0 Ban>01 /e$>01 !ar>01
TIME
S,ar Ho$)Pattr#
Fa#c&a$ Dta&$s
INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD. Page
S,ar Ho$)
Pattr#
5
Pr%$%"ers 7.
I!s""u"%!a*
I!ves"%rs
O"(er I!ves"%r 1.;
Ge!era* Pub*' 7.7
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INDIAN CAPITAL MARKET
YEAR
END
NET
SALES
Rs M;
PAT
Rs M;
EPS
Rs;
EPS
GRO>TH
5;
F ??? 111 1@ .@
F E 777 17; 177 1.7
I! ?F, Ba6a6 Au"% re)%r"e# Ne" Pr%" % Rs 7.b 4; !'rease %5,
*arge*y #rve! by (g(er sa*es a!# (g(er %"(er !'%$e.
Sa*es gre- by 7 % "% Rs 1.@b *e# by be""er )r%#u'" $
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sa*es #r%))!g 11 %. E
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Motorc%c$s
I! ?F, $%"%r'y'*es gre- by @1 % a" ;, u!"s. Gr%-"(
-as #rve! by a! %ver 1 % !'rease ! sa*es % "(e 1@'' a!# ab%ve
1'' 'a"eg%ry 4-('( !'*u#es "(e Ds'%ver a!# Pu*sar5.
I! F, Ba6a6 Au"%/s v%*u$es (ave gr%-! by ?7 % ! $%"%rbes,
resu*"!g ! a $are" s(are ga! % ;b). Ba6a6 Au"% e!#e# "(e year -"(
a $are" s(are % 7.1 ! "(e $%"%r'y'*e seg$e!". T(e gr%-"( (as bee!#rve! by )u*sar 7'' a!# 77''.
Fur"(er gr%-"( -** #e)e!# %! "(e ra$) u) ! v%*u$es % "(e Pu*sar,
-('( 'urre!"*y a''%u!"s %r %!*y 31 % "(e e
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)er$"s "(a" are ssue# by "ra!s)%r" au"(%r"es. I! F, v%*u$es #))e#
by ; #ue "% a**!g )asse!ger seg$e!" sa*es, -('( '%!s""u"es @ % ;
-(ee*er sa*es. T(%ug( "(e g%%#s seg$e!" (as gr%-! a" ; %, Ba6a6
Au"% s (eav*y #e)e!#e!" %! "(e )asse!ger seg$e!".
MAHINDRA ' MAHINDRA
Co*(a#% Dscr&(t&o#M&M s I!#a/s *ea#!g U a!# "ra'"%r $a!ua'"urer. Hav!g
su''essu**y -ea"(ere# "(e re'e!" #%-!"ur! ! "(e "ra'"%r !#us"ry M&M s
!%- -e** )%se# "% be!e" r%$ "(e u)"ur!. T(e '%$)a!y s !%- as)r!g
"% be "(e *ea#!g I!#a! U"*"y e('*e $a!ua'"urer )r%v#!g (g( +ua*"y
Us a" *%- '%s"s.
K% I#8st*#t Ar6u*#ts T(e '%!"!ue# gr%-"( ! "(e "ra'"%r se'"%r -** be!e" M&M as " s "(e
$are" *ea#er.
I!'rease# %'us by "(e g%ver!$e!" %! rura* s)e!#!g ! "(s bu#ge" -**
be!e" "ra'"%r
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$a!ua'"urers.
T(e '%$)a!y/s !'rease# %'us %! e
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Sctor V&2 :e re$a! bu**s( %! "(e $a'r% gr%-"( )'"ure %r )asse!ger 'ars !
I!#a
:e a*s% be*eve "(a" -"(! )asse!ger 'ars, Us -** !'rease "(er
$are" s(are '%!ss"e!"*y %ver "(e !e
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SPECIFICATION OF THE COMPANY
R6&str) O//&cGa"e-ay Bu*#!g, A)%**% Bu!#er Mu$ba Ma(aras("ra
?1
>. s&t ---.$a(!#ra-%r*#.'%$, ---.$a(!#ra.'%$
BSE Scr&(t Co) @@7
NSE Scr&(t Co) M&ME
Fac Va$u o/
S,arRs 1
3! 2- HL Rs 11L ??.
Pr/or*a#c Gra(, o/ t, Co*(a#%
.
0
100
200
300
400
500
600
Apr-
06
May-
06
Jun-
06
Jul-
06
Aug-
06
Sep-
06
Oct-
06
Nov-
06
Dec-
06
Jan-
07
Feb-
07
Mar-
07
T&*
S,ar Ho$) Pattr#INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD. Page
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Fa#c&a$ Dta&$s
YEAR
END
NET
SALES
Rs M;
PAT
Rs M;
EPS
Rs;
EPS
GRO>TH
5;
F ?1 ??.1 ?.1
F E 71 @ ?.1 1.
Ma(!#ra & Ma(!#ras 4M&M5 !e" sa*es, EBITDA a!# !e" )r%" gre-
7, 7; a!# ;7 ! ?F "% Rs 1.1b, Rs 7.1b a!# Rs 1.@b
res)e'"ve*y, !3*!e -"( %ur e
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% M&M s(%-e# g%%# )er%r$a!'e ! F. C%!s%*#a"e# reve!ues,
EBITDA a!# !e" )r%" gre- ;, @ a!# 1 "% Rs @.b, Rs 1;.@b, a!#
Rs .7b, res)e'"ve*y.
T(e bus!ess %u"*%% %r M&M re$a!s )%s"ve. M&M, -"( "s rura*3
'e!"r' )r%#u'" *!e, -** regs"er a 17 % gr%-"( ! "ra'"%r v%*u$es %ver
F3E. :e e
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S%ur'e= C%$)a!y
Stro#6 Pr/or*a#c FY9:M&M/s !e" reve!ues !'rease# ;? % "% Rs .b ! F %! "(e
ba' % a 7 v%*u$e gr%-"(. Tra'"%rs, Us, "(ree -(ee*ers a!# 2Cs
-"!esse# ;7, 7;, 1; a!# ;7 % gr%-"(, res)e'"ve*y. Ne"
rea*8a"%!s !'rease# %. EBITDA $arg! e
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Va$uat&o# a#) V&2Pass#6r V,&c$s
:e e
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S%ur'e= C%$)a!y
Far* E7u&(*#t
T(e ar$ e+u)$e!" seg$e!" 4FES5 s e
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INDIAN CAPITAL MARKET
T(e Ma(!#ra3Re!au*" 6%!" ve!"ure (ave *au!'(e# Se#a! 2%ga! !
I!#a ! "(e rs" (a* % 7.
T(e *%-3e!# se#a!, -('( -as *au!'(e# ! Eur%)e ! Qu!e 7?,
s)%r"s a )r'e "ag % US ,1 %r "(e base $%#e* ! Eas"er! Eur%)e. T(e
'ar s "arge"e# "% se** 1$ u!"s )er year by 71 ! seve! reg%!s a'r%ss
Eas"er! a!# Ce!"ra* Eur%)e, Russa, "(e M##*e Eas", 2a"! A$er'a, N%r"(
Ar'a a!# Asa.
T(e 2%ga! (as *au!'(e# ! I!#a -"( @ *%'a*8e# '%$)%!e!"s
!"a**y a!# (ave be $are"e# u!#er "(e Ma(!#ra3Re!au*" ba#ge.
T(e '%$)a!es USP -%u*# be 0:%r*# '*ass +ua*"y a" a! a%r#ab*e
)r'e 9 "(e 'ar s e
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CONCLUSIO
N
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INDIAN CAPITAL MARKET
CONCLUSION
A"er e- years I!#a -%u*# be'%$e "(e *arger %r'e ! "(e -%r*#
e'%!%$y.
T(e gr%-"( % "(e I!#a! e'%!%$y s be'%$!g (g(, -('( *ea#s "% "(e
(g(er re"ur!s ! "(e 'a)"a* $are".
I!#a/s '%!s"a!"*y !'reas!g gr%-"( s a""ra'"!g "(e FII/s !"eres" ! "(e
I!#a! $are"s.
T(ere -** be $%re a!# $%re 'a)"a* *%- r%$ "(e #eve*%)e# '%u!"res
! I!#a "(r%ug( FIIs a!# FDI.
I!#a (as be'a$e very )%-eru* ! "(e au"%$%b*e se'"%r be'ause % "(e
(g( gr%-"( ! "(e au"%$%b*e se'"%r.
Fr%$ "(e sugges"%! "(e !ves"%rs s(%u*# be very 'au"%us ! "er$s %
!ves"!g "(e $%!ey.
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FINDINGS
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FINDINGS:
:%r!gs a!# areas % I!#a! 'a)"a* $are"
:%r!gs, %)era"%!s, #ea*!gs, e"'. % a s"%' br%!g r$
4SHAREHAN 2TD.5
Ee'"s %! I!#a! & G*%ba* e'%!%$y #ue "% var%us 'a)"a* $are"s.
Base# %! u!#a$e!"a* a!a*yss % au"% $%b*e !#us"ry a!# )ar"'u*ar
'%$)a!y a! !ves"%r 'a! (ave a! #ea (%- "% !ves", -(e! "% !ves"
& (%- $u'( "% !ves".
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LIMITATIONS
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INDIAN CAPITAL MARKET
LIMITATIONS:
TIME CONTRAINT= As "(e )er%# % "(e )r%6e'" -as % %!*y ?@
#ays, "(e !%-*e#ge
ga!e# a!# !%r$a"%! '%**e'"e# s *$"e# "% "(a" e
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INDIAN CAPITAL MARKET
SUGGESTIONS:
" Focus o# Co*(a#&s #ot o# Stoc-s
Ma!y !#v#ua* !ves"%rs $ae "(e $s"ae % %'us!g %! s"%'s a!#
"(e s"%' $are" a" "(e e
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!" B Car/u$ 2&t, t, Po2r o/ t, Mar-t
Eve! !ves"%rs b%ug(" a g%%# '%$)a!y "(a" (as g%%# )%"e!"a*,
"(ey $ay s"** (ave a #%g %! "(er (a!#s. T(e $are" (as a! ab*"y "%
)a!" e!"re se'"%rs -"( "(e sa$e brus(. T(ese )r%*%!ge# 0se'"%r
6u#g$e!"s 'a! be very '%s"*y "% !ves"%rs "(ey #%!/" a''%u!" %r "(e$.
S%$e re)%r"s sugges" "(a" se*e'"!g !#v#ua* '%$)a!es s bare*y
$)%r"a!". I! $%s" 'ases, y%u are buy!g !"% a se'"%r rs" a!# a '%$)a!y
se'%!#. C%!"e
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#e"er$!e y%ur s"y*e ! a bg -ay. Day "ra#ers (ave very s(%r" (%r8%!s 3
"(ey #%!/" use u!#a$e!"a* a!a*yss 4!%r #% "(ey !ee# "%5. Ma!y
!#v#ua* !ves"%rs, -(e"(er %r !%" "(ey a#$" ", ge" 'aug(" u) ! ga$!g
"(e !e
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3" Gt t, Pro(r I#/or*at&o#
Be very 'areu* ab%u" #a*y !e-s. M%s" % " s !%se. S%, be 'areu* !
#a*y !e-s a!# av%# !%ses s%, "(! "(a" (%- #%es "(s $)a'" "(e
u!#a$e!"a* )r%s)e'"s % "(e bus!ess. S%, #%!/" "rus" %! "(a" !%se.
A** )ub*' '%$)a!es ssue )ress re*eases "(a" are u!#ers"a!#ab*y
av%rab*e> s%$e % "(e !e-s y%u ge" s re)ea" r%$ "(e )ress re*ease.Mu'( % "(e #a*y '%$$e!"ary "(a" )us(es "(r%ug( "(e $e#a %!"% y%ur
"e*evs%! %r !e-s)a)er s (g(*y "re!#y 9 '%$$e!"a"%rs are !#!g
)a""er!s "(a" #% !%" rea**y e
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S%, s!'e !ves"%r 'a!!%" !%- every"(!g a!# $u'( % "(e $are"
'%$$e!"ary s sus)e'". 2%% e*se-(ere a!# "rus" rea* e
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e
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GLOSSARY
GLOSSARY
LIST o/ ABBREVIATIONS:
ADR A$er'a! De)%s"%ry Re'e)"s
BSE B%$bay S"%' E
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CM Ca)"a* Mare"
C%. C%$)a!y
DCA De)ar"$e!" % C%$)a!y Aars
DEA De)ar"$e!" % E'%!%$' Aars
DP De)%s"%ry Par"')a!"
FDI F%reg! Dre'" I!ves"$e!"
FI F!a!'a* I!s""u"%!
FII F%reg! I!s""u"%!a* I!ves"%rs
GDR G*%ba* De)%s"%ry Re'e)"s
NSCC2 Na"%!a* Se'ur"es C*ear!g C%r)%ra"%! 2$"e#
NSD2 Na"%!a* Se'ur"es De)%s"%ry 2"#.
NSE Na"%!a* S"%' E
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UTI U!" Trus" % I!#a
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BIBLIOGRAP
HY
BIBLIOGRAPHY
REFERECE BOOKS
INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD. Page 17
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D%!a*# R C%%)er & Pa$e*a S S'(!#*er, 0$usiness %esearch
ðods, Eg("( E#"%! 47;5, Ta"a M'Gra-3H**, Ne- %r.
G%r#%! & Na"ra6a!, 0'inancial &arkets And "ervices Se'%!# Revse#
E#"%! Re)r!" 47@5, H$a*aya Pub*s(!g H%use. Pu!"(ava"(y Pa!#a!, 0"ecurity Analysis ( )ortfolio &anagement
E#"%! 7, as Pub*s(!g H%us!g Pv". 2"#.
SHAREHAN A2UE 2INE.
>EB SITES
---.!se!#a.'%$ ---.bse!#a.'%$
---.!#!%*!e.'%$
---.$%!ey'%!"r%*.'%$
---.bus!ess3s"a!#ar#.'%$
---.rb.%rg
---.seb.%rg
---.s(are(a!.'%$
INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD. Page 171
http://www.nseind.com/http://www.bseindia.com/http://www.indinfoline.com/http://www.krchoksey.com/http://www.investopedia.com/http://www.ccsindia.org/http://www.sebi.org/http://www.nseind.com/http://www.bseindia.com/http://www.indinfoline.com/http://www.krchoksey.com/http://www.investopedia.com/http://www.ccsindia.org/http://www.sebi.org/ -
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D&sc$a&*r
T(s re)%r" s %r "(e )ers%!a* !%r$a"%! % "(e au"(%r8e# re')e!"
a!# #%es !%" '%!s"rue "% be a!y !ves"$e!", *ega* %r "a