Prabu Karvy

7/26/2019 Prabu Karvy

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A STUDY ON CUSTOMER PERCEPTION TOWARDS INDIAN

CAPITAL MARKET WITH SPECIAL REFERANCE TO KARVY

STOCK BROKING LTD

A PROJECT REPORT

SUBMITED TO THE

SCHOOL OF MANAGEMENT

In the partial fulfillment of the requirement for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

BY

THAMIZH.P

Reg.No: 3510!1!

U"#e$ %&e g'(#)"*e o+

M$.P.SARA,ANAN B.B.A.- M.B.A.- PGDCA- M.P&(.

Se"(o$ Le*%'$e$

SCHOOL OF MANAGEMENT STUDIES

FACULTY OF ENGINEERING AND TECHNOLOGY

SRM UNI,ERSITY

SRM NAGAR- /ATTAN/ULATHUR- /ANCHEEPURAM

DISTRICT 03!03


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MAY !00


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SCHOOL OF MANAGEMENT STUDIES FACULTY

OF ENGINEERING AND TECHNOLOGY SRM

UNI,ERSITY

SRM NAGAR- /ATTAN/ULATHUR-

/ANCHEEPURAM DISTRICT203!03

BONAFIDE CERTIFICATE

Certified that this project Report titled A STUDY ON CUSTOMER

PERCEPTION TOWARDS INDIAN CAPITAL MARKET WITH

SPECIAL REFERANCE TO KARVY STOCK BROKING LTD

Is a bonafide work of THAMIZH.P(Reg no. 35106212) wo !arried o"# #e

resear! "nder $% s"&er'ision. er#ified f"r#er #a# #o #e bes# of $%

knowedge #e work re&or#ed ere in does no# for$ &ar# of an% o#er

&ro*e!# or disser#a#ion on #e basis of wi! a degree or award was

!onferred on an earier o!!asion on #is or an% o#er !andida#e.

+igna#"re of #e ,"ide +igna#"re of -ean M/A

(P.+ara'anan) (-r. a%sree +"res)

In#erna a$iner #erna a$iner

-a#e


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ABSTRACT

Te &ro*e!# re&or# A STUDY ON CUSTOMER PERCEPTION

TOWARDS INDIAN CAPITAL MARKET WITH SPECIAL

REFERANCE TO KARVY STOCK BROKING LTD,

is a des!ribed s#"d% were a !ear des!riion of #e organi4a#ion working

and #o know #e a&&i!a#ion of $anage$en# !on!es as How #o $anage

#e risk. I# !onsis#s of ana%sis and findings of #e s#"d% of #e India Infoine

i$i#ed. Te re&or# #aks abo"# #e Risk $anage$en#. Te ob*e!#i'e of #e

s#"d% is #o "nders#and edging and s&e!"a#ion #ro"g #e deri'a#i'e

#rading. Te s!o&e of #e s#"d% is i$i#ed #o #e !o$&an% $e#odoog%

foowed is #o s#"d% #e !o$&an% and i#s $arke# ana%sis for a &eriod of 3

$on#s i.e. fro$ 7ebr"ar% #o A&ri 2008. a!"a#ion a'e been $ade fro$

#e infor$a#ion ob#ained fro$ s#o!k $arke# &ri!e of #e 9+. 7ina% #e

re&or# ends wi# #e finding and ana%sis of #e s#"d% done a# #e !o$&an%

and re!o$$enda#ions gi'en #o #e $anage$en# of #e !o$&an% for f"r#er

i$&ro'e$en# of #eir working.


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AC/NOLEDGEMENT

I wo"d ike #o #ank /AR,Y STOC/ BRO/ING LTD-for gi'ing

$e #is o&&or#"ni#% #o be asso!ia#ed wi# an es#ee$ed organi4a#ion.

I wo"d es&e!ia% ike #o e&ress $% gra#i#"de #owards

M$. ANAND- B$)"*& M)")ge$- wo was $% &ro*e!# g"ide for a

#e s"&&or# and !ons#an# feedba!k on $% &rogress $ade d"ring #e &ro*e!#. I

wo"d aso ike #o #ank M$. SENTHIL M)")ge$ for #eir s"&&or# and

en!o"rage$en# wi! e&ed $e #o !o$&e#e #is &ro*e!# s"!!essf"%.

I e#end $% sin!ere #anks #o in#erna g"ide M$.P. SARA,ANAN

B.B.A.- M.B.A.- PGDCA. M.P&(. for is 'a"abe g"idan!e d"ring #e

&ro*e!# work.

M% sin!ere #anks #o onorabe fo"nder and !air$an

M$. PACHAMUTHU

S R M UNI,ERSITY- /ATTAN/ULATHUR

In &ar#i!"ar $% sin!ere #anks #o -ean M$4. JAYSHREESURESH

+H:: :7 MA9A,M9T +RM ;9IATTA9>;ATH;R for

&ro'iding a #e fa!ii#ies #o !arr%o"# #e &ro*e!# work. as# b"# no# #e eas# I

e#end $% #anks #o $% fa$i% and a $% friends wo e&ed $e in

!o$&e#ing #is &ro*e!# work s"!!essf"%.


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DECLARATION

I THAMIZH.P(35106212) do ere b% de!are #a# #is &ro*e!# ?A STUDY

ON CUSTOMER PERCEPTION TOARDS INDIAN CAPITAL

MAR/ET ITH SPECIAL REFERANCE TO /AR,Y STOC/

BRO/ING LTD@ s"b$i##ed #o +RM +!oo of Manage$en# +#"dies for

#e award of #e M)4%e$ o+ B'4("e44 A#("(4%$)%(o" is #e re!ord of

origina work done b% $e "nder g"idan!e of

M$.P.S)$)6)")".B.B.A.-M.B.A.- PGDCA.- M. P&(.- fa!"#% ,"ide

+!oo of Manage$en# s#"dies and #is &ro*e!# work as no# for$ed #e

basis for #e award of an% o#er -egree-i&o$aAsso!ia#e si&7eow si&

of #e si$iar #i#e #o an% o#er -egree #o an% o#er ;ni'ersi#%

P)*e : /)%%)"7')%&'$ +igna#"re of #e +#"den#

D)%e:


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TABLE OF CONTENTS

CHAPTER. CONTENTS Pg.No

NO

1 INTRODUCTION 1

! COMPANY PROFILE 15

3 RE,IE OF LITERATURE 23

8 RESEARCH METHODOLOGY 2A

5 DATA ANALYSIS 9 INTERPRETATION A6

FINDINGS B5

: SUGGESTIONS B8

CONCLUSION 101

;BIBILOGRAPHY

102

10 ANNE


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LIST OF TABLES

T)=e PARTICULARS PAGE

5.1Age 64. >'$>o4e o+ ("6e4%e"% (" 4&)$e 8

)$7e%.

5.!Ge"#e$ 64 ("+o$)%(o" %&e? 4ee7 +o$

8("6e4%("g (" 4%o*7 )$7e%.

5.3Ge"#e$ 64. $(47 %)7("g )=((%? o+ %&e 50

("6e4%o$4.

5.8I"6e4%o$@4 >e$*e>%(o" %o)$#4 4%o*7

5!)$7e%

5.5T&e o4% >$e+e$$e# 4e*%o$ =? %&e

58("6e4%o$4

Pe$*e"%)ge o+ ("6e4%o$@4 4)6("g4 (" 4%o*7

5. )$7e% 5

5.: Re)4o"4 +o$ ("6e4%("g (" %&e 4%o*7 5)$7e%

5.T(e +$)e o+ %&e ("6e4%e"% >$e+e$$e# 0

=? %&e $e4>o"#e"%

5.;R(47 %)7("g )=((%? o+ %&e ("6e4%o$4 !

5.10I"+o$)%(o" =)4e# o" &(*& 8

("6e4%e"%4 )$e )#e (" 4%o*7 )$7e%

5.10 D(++(*'%(e4 +)*e# =? %&e ("6e4%o$4


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LIST OF CHART

C&)$% PARTICULARS PAGE

I"6e4%o$@4 >e$*e>%(o" %o)$#4 4%o*7

5.1 )$7e% +$o $(47- $e%'$" )"# 4)6("g4 53

>o("% o+ 6(e

5.!T&e o4% >$e+e$$e# 4e*%o$ =? %&e

58("6e4%o$4

Pe$*e"%)ge o+ ("6e4%o$@4 4)6("g4 (" 4%o*7

5.3 )$7e% 5:

5.8Re)4o"4 +o$ ("6e4%("g (" %&e 4%o*7

5;)$7e%

5.5T(e +$)e o+ %&e ("6e4%e"% >$e+e$$e#

1

=? %&e $e4>o"#e"%

5.R(47 %)7("g )=((%? o+ %&e ("6e4%o$4 3

5.:I"+o$)%(o" =)4e# o" &(*&

5("6e4%e"%4 )$e )#e (" 4%o*7 )$7e%

5. D(++(*'%(e4 +)*e# =? %&e ("6e4%o$4

5.; S&)$e P$(*e Mo6ee"% o+ ICICI B)"7 :0

5.10E>o"e"%() Mo6("g A6e$)ge CEMA

:1+o$ ICICI B)"7

5.11Re)%(6e S%$e"g%& I"#e +o$ ICICI B)"7 :!


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LIST OF CHARTS

C&)$% PARTICULARS PAGE

5.1!Co>)$(4o" =e%ee" ICICI B)"7 9 NSE

:3

5.13 S&)$e >$(*e o6ee"% +o$ HDFC B)"7 :

E>o"e"%() Mo6("g A6e$)ge EMA +o$

5.18HDFC B)"7

::

5.15 Re)%(6e S%$e"g%& I"#e +o$ HDFC B)"7 :

5.1Co>)$(4o" =e%ee" HDFC =)"7 )"#

:;NSE ("#e

5.1: S&)$e >$(*e o6ee"% +o$ SBI B)"7 !

5.1E>o"e"%() Mo6("g A6e$)ge +o$ SBI

3B)"7

5.1; Re)%(6e S%$e"g%& +o$ SBI B)"7 8

5.!0 Co>)$(4o" =e%ee" SBI 9 NSE 5

5.!1 S%o*7 >$(*e o6ee"% o" PNB =)"7

5.!! E>o"e"%() Mo6("g A6e$)ge +o$ PNB ;

5.!3 Re)%(6e S%$e"g%& I"#e +o$ PNB ;0

5.!8 Co>)$(4o" =e%ee" PNB 9 NSE ;1


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CHAPTER21

INTRODUCTION

INTRODUCTION OF THE STUDY

a&i#a $arke# !an be !assified as &ri$ar% and se!ondar% $arke#. Te fres iss"e

of se!"ri#ies #akes &a!e in &ri$ar% $arke# and #rading a$ong in'es#ors #akes &a!e in

se!ondar% $arke#. Pri$ar% $arke# is aso known as new iss"es $arke#. C"i#% in'es#ors

firs# en#er !a&i#a $arke# #o"g in'es#$en# in &ri$ar% $arke#. In India !o$$on

in'es#ors &ar#i!i&a#ing in #e eC"i#% &ri$ar% $arke# is $assi'e. Te n"$ber of !o$&anies

offering eC"i#% #ro"g &ri$ar% $arke#s in!reased !on#in"o"s%.

Te Indian !a&i#a $arke# saw good grow# be#ween Ma% 2003 and an"ar% 200

on #e ba!k of good ,-P grow# en!o"raging !or&ora#e res"#s #e ,o'ern$en#Ds in#en#

#o in'es# ea'i% in infras#r"!#"re a s#rong r"&ee and $o"n#ing fore reser'es. Te

$arke# #oda% is range bo"nd and no# $"! see$s #o be a&&ening.

Eie #is is #e s#or% of #e eC"i#% $arke# a C"i!k ook a# #e deb# $arke# sows

#a# "ge iC"idi#% and ow !redi# off #ake ke in#eres# ra#es down $os# of #e &eriod.

Tere was $id 'oa#ii#% wene'er #ere was news abo"# ;.+. in#eres# ra#es. Tere as

been iger 'oa#ii#% $ore re!en#% be!a"se of #wo #ings F !on!erns o'er fis!a defi!i#

and infa#ion and rising in#eres# ra#es in #e ke% word e!ono$ies. Tere !o"d be

infa#ionar% &ress"res and rising #rade defi!i#s &ar#i!"ar% for #e de'eo&ing !o"n#ries.

1


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As for #e e$erging s!enario IndiaDs ,-P grow# &ro$ises #o be be##er #an wa#

i# is now. Indian !or&ora#es $a% !on#in"e #o sow good grow# and rob"s#ness. Te

$onsoon is e&e!#ed #o be good as aso #e agri!"#"re grow#. Te r"&ee see$s #o be

oding fine wie #e fore reser'es re$ain !o$for#abe.

Te baan!e see#s of Indian banks are ge##ing s#ronger. Te $arke#s now see$ #o

be wai#ing for #e ,o'ern$en#Ds $o'es on #e e!ono$i! fron#. Te eC"i#% $arke#s are

bo"nd #o see a big ra%. If #is does no# a&&en #en #e $arke#s !o"d see a !o&&%

&eriod aead. :n #e deb# side #ere are indi!a#ions #a# in#eres# ra#es $ig# rise.

I# is now fair% we es#abised #a# $aking in'es#$en#s on% in one !anne does

no# %ied #e desired res"#s. -i'ersifi!a#ion and asse# ao!a#ion is #e new $an#ra. A

&erson needs #o di'ersif% #o oi$i4e re#"rns. Tis wi in'o'e &"##ing $one% in eC"i#ies

F !oosing #e #%&e of eC"i#% f"nd #a# $os# s"i#s #e riskre#"rn &rofie and aso so$e

$one% in deb# f"nds. Te !o$bina#ion of eC"i#% and deb# wi de&end "&on #e foowing

fa!#ors F risk orien#a#ion C"an#"$ of re#"rn e&e!#ed #i$e ori4on and ob*e!#i'e of

$aking #e in'es#$en#.

B)$oe%e$ o+ %&e e*o"o?

A# #e s#o!k e!ange sare &ri!es rise and fa de&ending arge% on $arke#

for!es. +are &ri!es #end #o rise or re$ain s#abe wen !o$&anies and #e e!ono$% in

genera sow signs of s#abii#% and grow#. An e!ono$i! re!ession de&ression or finan!ia

!risis !o"de'en#"a% ead #o a s#o!k $arke# !ras.Terefore #e $o'e$en# of sare

2
http://en.wikipedia.org/wiki/Market_(economics)http://en.wikipedia.org/wiki/Economyhttp://en.wikipedia.org/wiki/Economic_recessionhttp://en.wikipedia.org/wiki/Financial_crisishttp://en.wikipedia.org/wiki/Financial_crisishttp://en.wikipedia.org/wiki/Stock_market_crashhttp://en.wikipedia.org/wiki/Economyhttp://en.wikipedia.org/wiki/Economic_recessionhttp://en.wikipedia.org/wiki/Financial_crisishttp://en.wikipedia.org/wiki/Financial_crisishttp://en.wikipedia.org/wiki/Financial_crisishttp://en.wikipedia.org/wiki/Stock_market_crashhttp://en.wikipedia.org/wiki/Market_(economics)


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&ri!es and in genera of #e s#o!k indees !an be an indi!a#or of #e genera #rend in #e

e!ono$%.

INDIAN CAPITAL MAR/ET

Te Indian !a&i#a $arke# as "ndergone &eno$ena !anges. Te $agni#"de of

grow# !o"d be ga"ged in #er$s of $assi'e *"$&s in f"nds $obii4a#ion #e #"rno'er on

#e s#o!k e!anges #e a$o"n# of $arke# !a&i#ai4a#ion and #e e&ansion of in'es#or

&o&"a#ion. Te reg"a#or% fra$ework as been s#reng#ened and s#rea$ined in order #o

#a!ke effe!#i'e% #e &robe$s asso!ia#ed wi# #e $assi'e grow# of #e $arke#.

Te $ain !o$&onen#s of Indian a&i#a $arke# are ,"i#Gedged Marke# and #e

Ind"s#ria +e!"ri#ies Marke#. I# is f"r#er !assified as &ri$ar% and se!ondar% $arke#.

,i#Gedged Marke# aso known as ,o'ern$en# +e!"ri#ies Marke# is #e $arke# for

go'ern$en# and se$i go'ern$en# se!"ri#ies. An i$&or#an# fea#"re of #e se!"ri#ies #raded

in #is $arke# is #a# #e% are s#abe in 'a"e and are $"! so"g# af#er banks. Te fres

iss"e of se!"ri#ies #akes &a!e in &ri$ar% $arke# and #rading a$ong in'es#ors #akes &a!e

in se!ondar% $arke#. Pri$ar% $arke# is aso known as new iss"es $arke#. C"i#%

in'es#ors firs# en#er !a&i#a $arke# #o"g in'es#$en# in &ri$ar% $arke#.

3
http://en.wikipedia.org/wiki/Stock_indexhttp://en.wikipedia.org/wiki/Stock_indexhttp://en.wikipedia.org/wiki/Stock_index


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I"#()" C)>(%) M)$7e%

,"i#Gedged Ind"s#ria

Marke# +e!"ri#ies Marke#

Pri$ar% Marke#

INDIAN STOC/ MAR/ET

Indian +#o!k Marke#s are one of #e odes# in Asia. I#s is#or% da#es ba!k #o near%

200 %ears ago. Te earies# re!ords of se!"ri#% deaings in India are $eager and obs!"re.

Te 1850Ds wi#nessed a ra&id de'eo&$en# of !o$$er!ia en#er&rise and brokerage

b"siness a##ra!#ed $an% $en in#o #e fied and b% 1860 #e n"$ber of brokers in!reased

in#o 60.

Te firs# s#o!k e!ange in India 18B se# "& in M"$bai. Tese was organi4ed as

'o"n#ar% nonG&rofi# $aking asso!ia#ions of brokers #o e'a"a#e and &ro#e!# #eir in#eres#

before #e !on#ro on se!"ri#ies #rading be!o$e a !en#ra s"b*e!# "nder #e !ons#i#"#ion in

1B50 i# was a s#a#e s"b*e!# and /o$ba% se!"ri#ies on#ra!# A!# 1B25 "sed #o reg"a#e

#rading in se!"ri#ies. ;nder #is A!# #e /o$ba% s#o!k e!ange was re!ogni4ed in 1B2J

and A$edabad in 1B3J. Te !en#ra egisa#ion was &ro&osed and a !o$$i##ee eaded

b% A.-.,orwaa wen# in#o #e /i for se!"ri#ies reg"a#ion.


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Te se!"ri#ies !on#ra!# A!# be!o$e ow in 1B56. As &er A&ri 1BB8 #ere were 23

s#o!k e!anges re!ogni4ed b% !en#ra ,o'ern$en#. Te% are o!a#ed in A$edabad

/angaore a!"##a o!in oi$ba#ore -ei ,"waa#i H%derabad ai&"r

"diana Mad%a Prades Madras Magad Mangaore Meer"# :T !ange :f

India (M"$bai) P"ne +a"ras#ra >"#! ;##ar Prades


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T$)#("g )% NSE *)" =e *)44(+(e# '"#e$ %o =$o)# *)%ego$(e4

1 Eoesae deb# $arke# and

2 a&i#a $arke#.

Eoesae deb# $arke# o&era#ions are si$iar #o $one% $arke# o&era#ions G

ins#i#"#ions and !or&ora#e bodies en#er in#o ig 'a"e #ransa!#ions in finan!ia

ins#r"$en#s s"! as go'ern$en# se!"ri#ies #reas"r% bis &"bi! se!#or "ni# bonds

!o$$er!ia &a&er !er#ifi!a#e of de&osi# e#!.

T&e$e )$e %o 7("#4 o+ >)?e$4 (" NSE:

1 Trading $e$bers and

2 Par#i!i&an#s.

Re!ogni4ed $e$bers of 9+ are !aed #rading $e$bers wo #rade on beaf of

#e$se'es and #eir !ien#s. Par#i!i&an#s in!"de #rading $e$bers and arge &a%ers ike

banks wo #ake dire!# se##e$en# res&onsibii#%.

BSE Bo=)? 4%o*7 e*&)"ge

/o$ba% +#o!k !ange i$i#ed (#e !ange) is #e odes# s#o!k e!ange in

Asia wi# a ri! eri#age. Po&"ar% known as K/+KL i# was es#abised as KTe 9a#i'e

+are +#o!k /rokers Asso!ia#ionK in 18J5. I# is #e firs# s#o!k e!ange in #e !o"n#r%

#o ob#ain &er$anen# re!ogni#ion in 1B56 fro$ #e ,o'ern$en# of India "nder #e

+e!"ri#ies on#ra!#s (Reg"a#ion) A!# 1B56.Te !angeDs &i'o#a and &reGe$inen# roe

in #e de'eo&$en# of #e Indian !a&i#a $arke# is wide% re!ogni4ed and i#s inde

SENSEX is #ra!ked wordwide.

6


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Te !ange as a na#ionGwide rea! wi# a &resen!e in 1J !i#ies and #owns of

India. Te s%s#e$s and &ro!esses of #e !ange are designed #o safeg"ard $arke#

in#egri#% and enan!e #rans&aren!% in o&era#ions. -"ring #e %ear 200G2005 #e #rading

'o"$es on #e !ange sowed rob"s# grow#.

Te !ange &ro'ides an effi!ien# and #rans&aren# $arke# for #rading in eC"i#%

deb# ins#r"$en#s and deri'a#i'es. Te /+Ds :n ine Trading +%s#e$ (/:T) is a

&ro&rie#ar% s%s#e$ of #e !ange and is /+ JJBBG2G2002 !er#ified. Te s"r'eian!e

and !earing se##e$en# f"n!#ions of #e !ange are I+: B0012000 !er#ified.

NATURE OF STOC/ MAR/ET

A s#o!k e!ange is a $arke# were se!"ri#ies i.e. sares deben#"res and

go'ern$en# se!"ri#ies are bro"g# and sod. Te se!"ri#ies !on#ra!# a!# 1B56 defines #e

s#o!k e!ange as ?an asso!ia#ion organi4a#ion or bod% of indi'id"as were in

!or&ora#e are no# es#abised for #e &"r&ose of assis#ing reg"a#ing and !on#roing of

b"siness in b"%ing seing and deaing in se!"ri#ies@.

Me=e$4 o+ 4%o*7 e*&)"ge4

Te reg"a#ions go'erning #e $e$bers of #e re!ogni4ed s#o!k e!anges are

"nifor$ in #er$s of #e &ro'isions of #e se!"ri#ies !on#ra!# a!# 1B5J.

J


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Te s#a#"#or% r"es &ro'ide #a# no &erson sa be eigibe #o be ee!#ed as a

$e$ber if e isG

1 9o# an Indian i#i4en.

2 ess #an 21 %ears.

3 A *"dged bankr" #o be inso'en#.

4 on'i!#ed of an offen!eGin'o'ing frond.

5 Me$ber of an% o#er asso!ia#ion in India were deaings in se!"ri#ies are

!arried on.

6 ngaged as &rin!i&a or e$&o%ee in an% b"siness o#er #an #a# of se!"ri#ies.

F'"*%(o"4

Te #ree i$&or#an# f"n!#ions of se!ondar% $arke#s are

1 Pri!e dis!o'er% &ro!ess wi! res"#s fro$ #e in#era!#ions of b"%er and

seers in #e $arke# wen #e% #rade asse#s.

2 Pro'isions of iC"idi#% b% &ro'iding a $e!anis$ for an in'es#or #o se

finan!ia asse#s.

3 7ina% ow !os# of #ransa!#ions and infor$a#ion.

T$)#("g P)%%e$" o+ %&e I"#()" S%o*7 M)$7e%

Trading in Indian s#o!k e!anges is i$i#ed #o is#ed se!"ri#ies of &"bi! i$i#ed

!o$&anies. Te% are broad% di'ided in#o #wo !a#egories na$e% s&e!ifiedNse!"ri#ies

(forward is#) and nonGs&e!ified se!"ri#ies (!as is#). C"i#% sares of di'idend &a%ing

grow#Gorien#ed !o$&anies wi# a &aidG"& !a&i#a of a# eas# Rs.50 $iion and a $arke#

!a&i#ai4a#ion of a# eas# Rs.100 $iion and a'ing $ore #an 20000 sareoders are

nor$a% &"# in #e s&e!ified gro"& and #e baan!e in nonGs&e!ified gro"&.

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Two #%&es of #ransa!#ions !an be !arried o"# on #e Indian s#o!k e!anges (a)

s&o# dei'er% #ransa!#ions Kfor dei'er% and &a%$en# wi#in #e #i$e or on #e da#e

s#i&"a#ed wen en#ering in#o #e !on#ra!# wi! sa no# be $ore #an 1 da%s foowing

#e da#e of #e !on#ra!#@ and (b) forward #ransa!#ions Kdei'er% and &a%$en# !an be

e#ended b% f"r#er &eriod of 1 da%s ea! so #a# #e o'era &eriod does no# e!eed B0

da%s fro$ #e da#e of #e !on#ra!#K. Te a##er is &er$i##ed on% in #e !ase of s&e!ified

sares. Te brokers wo !arr% o'er #e o"#s#anding &a% !arr% o'er !arges (!an#ango or

ba!kwarda#ion) wi! are "s"a% de#er$ined b% #e ra#es of in#eres# &re'aiing.

A $e$ber broker in an Indian s#o!k e!ange !an a!# as an agen# b"% and se

se!"ri#ies for is !ien#s on a !o$$ission basis and aso !an a!# as a #rader or deaer as a

&rin!i&a b"% and se se!"ri#ies on is own a!!o"n# and risk in !on#ras# wi# #e &ra!#i!e

&re'aiing on 9ew =ork and ondon +#o!k !anges were a $e$ber !an a!# as a

*obber or a broker on%. Te na#"re of #rading on Indian +#o!k !anges are #a# of age

od !on'en#iona s#%e of fa!eG#oGfa!e #rading wi# bids and offers being $ade b% o&en

o"#!r%.

O6e$ T&e Co'"%e$ E*&)"ge o+ I"#() OTCEI

Te #radi#iona #rading $e!anis$ &re'aied in #e Indian s#o!k $arke#s ga'e wa%

#o $an% f"n!#iona ineffi!ien!ies s"! as absen!e of iC"idi#% a!k of #rans&aren!%

"nd"% ong se##e$en# &eriods and bena$i #ransa!#ions wi! affe!#ed #e s$a

in'es#ors #o a grea# e#en#. To &ro'ide i$&ro'ed ser'i!es #o in'es#ors #e !o"n#r%Ds firs#

ringess s!ri&ess ee!#roni! s#o!k e!ange G :TI G was !rea#ed in 1BB2 b% !o"n#r%Ds

&re$ier finan!ia ins#i#"#ions G ;ni# Tr"s# of India Ind"s#ria redi# and In'es#$en#

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or&ora#ion of India Ind"s#ria -e'eo&$en# /ank of India +/I a&i#a Marke#s

Ind"s#ria 7inan!e or&ora#ion of India ,enera Ins"ran!e or&ora#ion and i#s

s"bsidiaries and an/ank 7inan!ia +er'i!es.

Trading a# :TI is done o'er #e !en#res s&read a!ross #e !o"n#r%. +e!"ri#ies #raded on

#e :TI are !assified in#oG

1 Listed Securities G Te sares and deben#"res of #e !o$&anies is#ed on #e :T

!an be bo"g# or sod a# an% :T !o"n#er a o'er #e !o"n#r% and #e% so"d no#

be is#ed an%were ese

2 Permitted Securities G er#ain sares and deben#"res is#ed on o#er e!anges

and "ni#s of $"#"a f"nds are aowed #o be #raded

3 Initiated debentures G An% eC"i#% oding a# eas# one ak deben#"res of

&ar#i!"ar s!ri& !an offer #e$ for #rading on #e :T.

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1.!. STATEMENT OF PROBLEM

C)>(%) M)$7e%

a&i#a $arke# is genera% !assified in #o #wo Marke#s. Te% are

1 Pri$ar% Marke#

2 +e!ondar% Marke#

Te fres iss"e of se!"ri#ies #akes &a!e in &ri$ar% $arke# and #rading a$ong in'es#ors

#akes &a!e in se!ondar% $arke#.

Te +#a#e$en# of Probe$ is

1 To ana%4e in'es#ors &er!eion #owards #e Indian !a&i#a $arke#.

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1.3 OBJECTI,ES OF THE STUDY

P$()$? O=e*%(6e4:

1 To ana%4e in'es#ors &er!eion #owards #e Indian !a&i#a $arke#.

2 To $eas"re #e risk #aking abii#% of in'es#ors.

3 To s#"d% #e diffi!"#ies fa!ed b% in'es#ors wie in'es#ing in s#o!k $arke#.

Se*o"#)$? O=e*%(6e4:

1 To de#er$ine #e $os# &referred se!#or b% #e in'es#ors.

2 To e'a"a#e #e &erfor$an!e of banking se!#or "sing #e!ni!a and

f"nda$en#a ana%sis.

3 To find we#er #e !on#in"o"s boo$ wi#nessed b% bank se!#or wi !on#in"e

in !"rren# %ear.

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1.4. SCOPE OF THE STUDY

2 Te s#"d% !o'ers #e in'es#ors of ennai.

3 Te s#"d% e&s #o know abo"# #e ob*e!#i'e of in'es#$en#s in #e s#o!k

$arke#.

4 Te s#"d% &ro'ided an insig# in#o 'ario"s &robe$s fa!ed b% #e in'es#ors

wie in'es#ing in #e s#o!k $arke#.

5 Te s#"d% ga'e an "nders#anding of #e in'es#ors &er!eion #owards s#o!k

$arke#. I# e&ed in de#er$ining #e sa'ing abi# in'es#$en# ob*e!#i'e and

risk #aking abii#% of !o$$on in'es#ors.

6 Te s#"d% aso e&ed #o e'a"a#e #e $os# &referred se!#or b% #e in'es#or for

$aking in'es#$en#.

7 Te s#"d% aso e&s "s #o know #e &erfor$an!e of banking se!#or in #e

f"#"re.

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1.5. LIMITATIONS OF THE STUDY

2 -"e #o geogra&i!a !ons#rain# on% #e in'es#ors in ennai were s"r'e%ed.

3 Te res&onden#s were re"!#an# #o dis!ose #eir &ersona de!isions on

in'es#$en#s.

4 I# so"d be no#ed #a# #ere is &ossibii#% for #e sare &ri!e #o "ndergo

!anges fro$ #i$e #o #i$e on a!!o"n# of !anges in #e #rading freC"en!% of

s#o!ks $arke# fa!#ors in!"ding reg"a#or% !anges in #e s#o!k $arke#.

5 A #e banks wo"d no# be s#"died be!a"se a of #e$ are no# is#ed in 9if#%

50.

6 InG de s#"d% of ea! bank was no# done d"e #o #i$e !ons#rain#.

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CHAPTER2!

COMPANY PROFILE

>ARARar'% as a &rofessiona $anage$en# #ea$ and ranks a$ong #e bes# in #e!noog%

o&era#ions and $ore i$&or#an#% in resear! of 'ario"s ind"s#ria seg$en#s.

>ar'% began i#s *o"rne% 15 %ears ba!k wi# #o#a ser'i!e a&&roa! #aking #e

in'es#or as !"s#o$er for a fas#er and be##er ser'i!e. Te !o$&an% as !o$e a!ross $an%

!aenges and i# as $e# #e !aenges s"!!essf"% sin!e i#s in!eion.

In an"ar% 1BB8 >ar'% be!a$e #e firs# -e&osi#or% Par#i!i&an# in Andra

Prades. Ei# a ne#work of 12 bran! offi!es and 6 ser'i!es !en#ers a!ross #e !o"n#r%

>ar'% as b"i# "& rea#ionsi&s wi# o'er 16 $iion in'es#ors a!#ing on beaf of o'er

1J5 !or&ora#e !ien#s. Te !o$&an% as anded $ore of &"bi! iss"es #a# an% o#er

regis#rar in #e !o"n#r%.

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A de!ade of !o$$i#$en# &rofessiona in#egri#% and 'ision e&ed >ar'% a##ain a

eadersi& &osi#ion in i#s fied wen i# anded #e arges# n"$ber of iss"es e'er anded

in #e is#or% of #e Indian s#o!k $arke# in a %ear.

To ens"re !onsis#en!% in i#s ser'i!e dei'er% >ar'% e$barked "&on #e I+: B002

!er#ifi!a#ion eer!ise. Tis eer!ise as e&ed #e$ in iden#if%ing red"ndan!ies and

s#rea$ining #e o&era#ions. Te regis#ra#ion a"di# was !arried o"# b% >PM, Pea#

Marwi!k and in!iden#a% >ar'% is #e firs# !er#ified !o$&an% in India in #eir ine of

b"siness. :'er #e &as# one and af de!ades >ar'% as e'o'ed as a 'eri#abe ink

be#ween ind"s#r% finan!e and &eo&e.

To a!ie'e and re#ain eadersi& >ar'% ai$s for !o$&e#e !"s#o$er sa#isfa!#ion

b% !o$bining i#s "$an and #e!noogi!a reso"r!es #o &ro'ide s"&erior C"ai#% finan!ia

ser'i!es. In #e &ro!ess >ar'% aso s#ri'es #o e!eed "s#o$ers e&e!#a#ions.

MISSION

To be a eading and &referred ser'i!e &ro'ider #o #e !"s#o$er and ai$ #o a!ie'e

#e eadersi& &osi#ion b% b"iding an inno'a#i'e en#er&rising and #e!noog% dri'en

organi4a#ion wi! wi se# #e iges# s#andards of b"siness and ser'i!e e#i!s.

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UALITY OBJECTI,ES

Te O"ai#% Poi!% of >ar'% is #oG

1 /"id inGo"se &ro!esses #a# wi ens"re #rans&aren# and ar$onio"s rea#ionsi&

wi# i#s !ien#s and in'es#ors #o &ro'ide ig C"ai#% of ser'i!es.

2 s#abis a &ro&er rea#ionsi& wi# i#s in'es#or ser'i!e agen#s and 'endors #a#

wi e& in kee&ing "& i#s !o$$i#$en#s #o #e !"s#o$ers.

3 Pro'ide ig C"ai#% of work ife for a i#s e$&o%ees and eC"i& #e$ wi#

adeC"a#e knowedge skis so as #o res&ond #o !"s#o$erDs needs.

4 on#in"e #o "&od #e 'a"es of ones#% in#egri#% and s#ri'e #o es#abis

"n&araeed s#andards in b"siness e#i!s.

5 ;se s#a#eGofG#e ar# infor$a#ion #e!noog% in de'eo&ing new and inno'a#i'e

finan!ia &rod"!#s and ser'i!es #o $ee# #e !anging needs of in'es#ors and

!ien#s.

6 +#ri'e #o be a reiabe so"r!e of 'a"eGadded finan!ia &rod"!#s and ser'i!es and

!ons#an#% g"ide #e indi'id"as and ins#i#"#ions in $aking a *"di!io"s !oi!e of

sa$e.

SER,ICES OFFERED BY /AR,Y

Te% offer 'ario"s ser'i!es s"! asG

1 or&ora#e Regis#r% ser'i!es

2 +#o!k /roking ser'i!es

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1 7inan!ia Prod"!# -is#rib"#ion

2 or&ora#e 7inan!ia ser'i!es

3 -e&osi#or% Par#i!i&an# +er'i!es

4 IT enabed +er'i!es

5 M"#"a 7"nd In'es#or +er'i!ing

6 In'es#$en# banking

7 +areoder +er'i!ing

8 Persona finan!e Ad'isor% +er'i!es

9 -eb# Marke# +er'i!es

10,oba +er'i!es

IMPORTANT CLINTELE

1 Reian!e Ind"s#ries

2 Indian :i or&ora#ion

3 I-/I

4 I M"#"a f"nd

5 Hind"s#an e'er

6 Prin!i&a M"#"a 7"nd

7 Mari!o Ind"s#ries

8 Pa#ni o$&"#ers

9 Morgan +#ane%

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ACHI,EMENTS

1 arges# $obii4e of f"nds as &er PRIM -ATA/A+.

2 7irs# I+: G B002 er#ified Regis#rar in India.

3 A a#egor%G I GMer!an# banker.

4 A a#egor%G I GRegis#rar #o P"bi! Iss"es.

5 Ranked as ?Te Mos# Ad$ired Regis#rarK b% MAR,.

6 Handed #e arges#G e'er P"bi! Iss"e T+.

7 Handed o'er J00 P"bi! iss"es as Regis#rars.

8 Handing #e Reian!e A!!o"n# wi! a!!o"n#s for near% 10 $iion a!!o"n#

oders.

9 7irs# -e&osi#or% Par#i!i&an# fro$ Andra Prades.

10arges# inde&enden# dis#rib"#or of finan!ia &rod"!#s.

M'%') F'"# I"6e4%e"% A#6(4o$

In'es#$en# is #e s#e&&ing s#one #o a!ie'ing oneDs finan!ia drea$s. M"#"a

f"nds offer an o&&or#"ne wa% #o ongG#er$ wea# !rea#ion. Howe'er wi# $ore and

$ore f"nds fooding #e $arke# #e #ask of see!#ing #e $os# s"i#abe s!e$e ge#s e'en

$ore !o$&i!a#ed. M"#"a 7"nd Ad'isor% +er'i!e a# >ar'% g"ides %o" #ro"g #is $a4e

and ens"res #a# %o"r in'es#$en#s are ba!ked b% o"r C"ai#% resear!.

1B


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Prod"!#s of 33 AMs areG

1 Resear! re&or#s (eis#ing f"nds 97:sL s#ra#eg% re&or#s e#!.)

2 "s#o$i4ed $"#"a f"nd &or#foios

3 Por#foio re'ision (de&ending on !anging $arke# o"#ook and e'o'ing

#rends)

4 A!!ess #o onine !onsoida#ed &or#foio s#a#e$en#

A=o'% /AR,Y I"4'$)"*e B$o7("g L%#. /IBL

A# >I/ we &ro'ide bo# ife and nonGife ins"ran!e &rod"!#s #o re#ai

indi'id"as ig ne#Gwor# !ien#s and !or&ora#es. Ei# #e o&ening "& of #e ins"ran!e

se!#or we are in a &osi#ion #o &ro'ide ois#i! and #aior $ade &oi!ies for differen#

seg$en#s of !"s#o$ers. Ei# Indian $arke#s seeing a sea !ange bo# in #er$s of

in'es#$en# &a##ern and a##i#"de of in'es#ors ins"ran!e is no $ore seen as on% a #a

sa'ing &rod"!# b"# aso as a &rod"!# wi! &ro'ides a finan!ia so"#ion for #e !"s#o$er.

:"r wide na#iona ne#work s&anning #e eng# and bread# of India f"r#er s"&&or#s

#ese ini#ia#i'es. :"r s#reng#s in!"de &ersonai4ed ser'i!e &ro'ided b% a dedi!a#ed #ea$

!o$$i##ed in gi'ing asseGfree ser'i!e #o #e !ien#s.

A=o'% /AR,Y F(")"*() P)""("g

In i#s a$bi#ion #o e$erge as a !o$&e#e finan!ia ad'isor >AR


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Ei# India e$erging as a s#rong $arke# #e in'es#$en#s a'en"es a'e aso in!reased #o

ad'i!e o"r !"s#o$ers #e rig# a'en"e a!!ording #o #eir s"i#abii#% :"r 'ision is KTo

!a#er #o #e "niC"e needs and reC"ire$en#s of #e $ass aff"en# b% &ro'iding !o$&e#e

finan!ia so"#ions and #ereb% enabing #e$ #o #ransfor$ #eir drea$s in#o reai#%.K

/AR,Y )4 )" I"*oe T) A#6(4o$

In ine wi# >AR


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F(e# I"*oe Se*'$(%(e4 9 T$)#("g /2FIST

Products - en#ra ,o'ern$en# se!"ri#ies +#a#e -e'eo&$en# oans +#a#e

,"aran#eed bonds P"bi! +e!#or ;nder#aking /onds 7inan!ia Ins#i#"#ion /onds and

/ank bonds of +R9onG+R !a#egor% bo# #aabe and #aGfree.

IPO4 2 I"(%() P'=(* O++e$

An IP: is a $eans of !oe!#ing $one% fro$ #e &"bi! b% a !o$&an% for #e firs#

#i$e in #e $arke# #o f"nd i#s &ro*e!#s. In re#"rn #e !o$&an% gi'es #e sare #o #e

in'es#ors in #e !o$&an% .In an IP:L #e ead $anagers de!ide #e &ri!e of #e iss"e. In a

book b"iding offer #e s%ndi!a#e $e$bers de!ide #e indi!a#i'e &ri!e range and #e

in'es#ors de!ide #e &ri!e of #e iss"e #ro"g a #ender $e#od.

A draf# &ros&e!#"s &ro'ides #e infor$a#ion on #e finan!ias of #e !o$&an%

&ro$o#ers ba!kgro"nd #en#a#i'e iss"e &ri!e e#!. I# is fied b% #e ead Managers wi# #e

+e!"ri#ies !ange /oard of India (+/I) #o &ro'ide iss"e de#ais. Te fina

&ros&e!#"s is &rin#ed af#er ob#aining #e !earan!e fro$ +/I and #e Regis#rar of

o$&anies (R:).

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CHAPTER23

RE,IE OF LITERATURE

C"i#% in'es#ors firs# en#er in #o !a&i#a $arke# #o"g in'es#$en# in &ri$ar% $arke#. In

India !o$$on in'es#ors &ar#i!i&a#ing in #e eC"i#% &ri$ar% $arke# is $assi'e. Te

n"$ber of !o$&anies offering eC"i#% #ro"g &ri$ar% $arke#s in!reased !on#in"o"s%.

Te Indian !a&i#a $arke# saw good grow# be#ween Ma% 2006 and an"ar% 200J on #e

ba!k of good ,-P grow# en!o"raging !or&ora#e res"#s #e ,o'ern$en#Ds in#en# #o

in'es# ea'i% in infras#r"!#"re a s#rong r"&ee and $o"n#ing fore reser'es. Te $arke#

#oda% is range bo"nd and no# $"! see$s #o be a&&ening.

Te s#"d% !on!en#ra#es on #e in'es#$en# de!isions #aken b% #e in'es#ors wie in'es#ing

in !a&i#a $arke#s. I# a&&eared fro$ #e ana%sis #a# #e in'es#ors gi'e $ore i$&or#an!e

#o brokers ad'i!e #en an% o#er so"r!e of infor$a#ion. Te% aso !onsider $arke# &ri!e

as a be##er indi!a#or #an ana%s# re!o$$enda#ions. Te s#"d% aso iden#ifies risk

orien#a#ion C"an#"$ of re#"rn e&e!#ed #i$e ori4on ob*e!#i'e of $aking #e

in'es#$en# and #e diffi!"#ies fa!ed b% #e in'es#ors in !a&i#a $arke#. Te s#"d% aso

a##e$s #o find o"# #e $os# &referred se!#or b% #e in'es#ors.

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CHAPTER28

RESEARCH METHODOLOGY

RESEARCH refers #o #e s%s#e$a#i! $e#od of en"n!ia#ing #e &robe$

for$"a#ion of #e %&o#esis !oe!#ing #e fa!#s or da#a ana%4ing #e fa!#s and rea!ing

!on!"sions #owards #e !on!erned &robe$.

METHODOLOGY is defined as ?#e s#"d% of $e#ods b% wi! we gain

knowedge. I# deas wi# !ogni#i'e &ro!esses i$&osed on resear! b% #e &robe$s

arising fro$ #e na#"re of i#s s"b*e!# $a##er@.

RESEARCH DESIGN

Resear! design is #e &an s#r"!#"re and #e s#ra#eg% of in'es#ing !on!ei'ed so as

#o ob#ain answer #o resear! C"es#ions and #o !on#ro 'arian!e.

A!!ording #o Pa'ine =o"ng (1BB) a resear! design is ?#e ogi!a and s%s#e$a#i!

&anning and dire!#ing a &ie!e of resear!. Te design a!!ording #o er is #e res"#

#ransa#ing a genera s!ien#ifi! $ode #o a 'aried resear! &ro!ed"re@.

NATURE OF STUDY

De4*$(>%(6e Re4e)$*&

-es!rii'e resear! is "sed #o ob#ain infor$a#ion !on!erning #e !"rren# s#a#"s of

#e &eno$ena #o des!ribe ?wa# eis#s@ wi# res&e!# #o 'ariabes or !ondi#ions in a

si#"a#ion. Te $e#od "ses #e s"r'e% wi! des!ribes #e s#a#"s C"o #e !orrea#ion

s#"d% wi! in'es#iga#es #e rea#ionsi& be#ween 'ariabes #o de'eo&$en#a s#"dies seek

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#o de#er$ine !anges o'er #i$e. Te infor$a#ion as been !oe!#ed b% !ond"!#ing a

s"r'e% a$ongs# #e 'ario"s re#ai in'es#ors a'aiabe in ennai.

A")?%(*) Re4e)$*&

Ana%#i!a resear! is designed #o ana%4e #e fa!#sinfor$a#ion aread% a'aiabe

#o $ake a !ri#i!a e'a"a#ion of #e $a#eria. T"s in $% s#"d% ana%#i!a resear! is "sed

#o e'a"a#e #e /e#a bea'ior of #e se!"ri#ies and #e in'es#$en#s of #e &or#foio. Te

infor$a#ion for doing #is resear! is !oe!#ed fro$ #e 9+ websi#e.

D)%) Coe*%(o" Me%&o#

-a#a refers #o infor$a#ion or fa!#s. I# is no# on% refers n"$eri!a fig"res b"# aso

in!"des des!rii'e fa!#s. Te $e#od of da#a !oe!#ion in!"des #wo #%&es for #e s#"d%

s"! as &ri$ar% da#a and se!ondar% da#a.

Primary Data

Pri$ar% da#a is #e da#a #a# is !oe!#ed for #e firs# #i$e b% #e resear!er. Te

&ri$ar% da#a are !oe!#ed wi# s&e!ifi! se# of ob*e!#i'e #o assess #e !"rren# s#a#"s of an%

'ariabe s#"died. Pri$ar% da#a is "sef" on% &ar#i!"ar &eriod.

Pri$ar% da#a as been !oe!#ed b% !ond"!#ing a s"r'e% a$ong #e 'ario"s in'es#ors

a'aiabe in ennai.

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Secondary Data

+e!ondar% da#a is #e da#a !oe!#ed fro$ #e aread% a'aiabe da#a wi! is we

s#r"!#"red and organi4ed. Te se!ondar% da#a reC"ired for #e s#"d% was ob#ained fro$

aread% a'aiabe da#a in differen# si#es ike nseindia.!o$ a$fi.!o$ $one%&ore.!o$ e#!.

S)>e S(e

Primary Data

7or #e &ri$ar% da#a #e sa$&e si4e !oe!#ed was 250.

Secondary Data

7or #e se!ondar% da#a #e sa$&e si4e was /anks is#ed in 9if#% 50.

S)>("g U"(%

Primary Data

Re#ai in'es#ors in ennai.

Secondary Data

/anks is#ed n #e +P 9Q 9I7T= for #e &eriod of 5 %ears (an 2003 -e! 200J).

S)>("g Te*&"('e

Primary Data

7or #e &ri$ar% da#a #e sa$&ing $e#od "sed was !on'enien!e sa$&ing.

A !on'enien!e sa$&e is ob#ained b% see!#ing !on'enien# &o&"a#ion "ni#s.

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Secondary Data

osing &ri!e of ea! !o$&an%s sare &ri!e for #e &as# fi'e %ears is downoaded fro$

www.nseindia.!o$ Eebsi#e.

Te sa$&ing #e!niC"e was based on #e infor$a#ion a'aiabe on s#o!k &ri!es

o'er #e &as# fi'e %ears. Te sa$&e in!"des fo"r banks wi! a'e been is#ed in #e

9+ for o'er a &eriod of fi'e %ears and infor$a#ion on #eir sare &ri!es were aread%

a'aiabe. Hen!e #is sa$&e is "sed for #e !o$&ara#i'e s#"d%. 9+ inde 9I7T= is "sed

#o !a!"a#e $arke# re#"rns.

Too4 +o$ A")?4(4

Primary Data

1 +i$&e Per!en#age a!"a#ion

2 Eeig#ed A'erage a!"a#ion

3 iG+C"are Tes#

4 Pie !ar#s

5 /ar diagra$s

Secondary Data

1 Te!ni!a ana%sis

2 7"nda$en#a ana%sis

3 andes#i!k $e#od

4 &onen#ia Mo'ing A'erage

2J


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I9 +H:RT TH R+ARH MTH:-::,= AR

P$()$? D)%)

+a$&e +i4e 250

+a$&ing ;ni# Re#ai in'es#ors of 'ario"s bran!es in ennai

+a$&ing T%&e -es!rii'e

1 +a$&ing Me#od on'enien# sa$&ing

on#a!# Me#od Persona in#er'iew Tee&oni! In#er'iew

Toos ;sed +i$&e Per!en#age a!"a#ion Eeig#ed A'erage

a!"a#ion and i G +C"are Tes# Pie !ar#s and /ar diagra$s

Se*o"#)$? D)%)

9a#"re of -a#a +e!ondar% da#a

+a$&e +i4e 7o"r banks is#ed in 9if#% 50

Me#od of -a#a oe!#ion +e!ondar% da#a !oe!#ion P!osing &ri!e of

ea! banks sare &ri!e for #e &as# fi'e %ears is down oaded fro$

www.nseindia.!o$

Toos ;sed 7"nda$en#a ana%sis #e!ni!a ana%sis

!andes#i!k !ar# e&onen#ia $o'ing a'erage rea#i'e s#reng# inde.

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THEORY

E% In'es#ors Prefer #o In'es# in +are Marke#

In'es#$en# in eC"i#ies is one of #e asse# !asses #a# bring be##er re#"rns o'er

=ears o$&an% #o in'es#$en# in b"ion and rea es#a#e a&ar# fro$ !onser'a#i'e for$ of

in'es#$en#s in fied de&osi#s e#!.

In'es#$en# eC"i#ies #"s beie'ed #o be a good wa% of ge##ing good re#"rns.

+e!ond% "nike o#er asse#s !asses i# as #e benefi# of iC"idi#% #a# isL i# !o"d be

en!ased 'er% C"i!k%. Tird% #o"g in'es#$en# in eC"i#ies is risk% i# is &referred b%

$iions of &eo&e word o'er.

IMPORTANCE OF STOC/ MAR/ET

F'"*%(o" )"# P'$>o4e

Te s#o!k $arke# is one of #e $os# i$&or#an# so"r!es for !o$&anies #o raise

$one%. Tis aows b"sinesses #o go &"bi! or raise addi#iona !a&i#a for e&ansion. Te

iC"idi#% #a# an e!ange &ro'ides affords in'es#ors #e abii#% #o C"i!k% and easi% se

se!"ri#ies. Tis is an a##ra!#i'e fea#"re of in'es#ing in s#o!ks !o$&ared #o o#er ess

iC"id in'es#$en#s s"! as rea es#a#e.

His#or% as sown #a# #e &ri!e of sares and o#er asse#s is an i$&or#an# &ar# of

#e d%na$i!s of e!ono$i! a!#i'i#% and !an inf"en!e or be an indi!a#or of so!ia $ood.

Rising sare &ri!es for ins#an!e #end #o be asso!ia#ed wi# in!reased b"siness in'es#$en#

and 'i!e 'ersa. +are &ri!es aso affe!# #e wea# of o"seods and #eir !ons"$ion.

Terefore !en#ra banks #end #o kee& an e%e on #e !on#ro and bea'ior of #e s#o!k

2B
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$arke# and in genera on #e s$oo# o&era#ion of finan!ia s%s#e$ f"n!#ions. 7inan!ia

s#abii#% is #e raison dDS#re of !en#ra banks.

!anges aso a!# as #e !earingo"se for ea! #ransa!#ion $eaning #a# #e%

!oe!# and dei'er #e sares and g"aran#ee &a%$en# #o #e seer of a se!"ri#%. Tis

ei$ina#es #e risk #o an indi'id"a b"%er or seer #a# #e !o"n#er&ar#% !o"d defa"# on

#e #ransa!#ion.

Te s$oo# f"n!#ioning of a #ese a!#i'i#ies fa!ii#a#es e!ono$i! grow# in #a#

ower !os#s and en#er&rise risks &ro$o#e #e &rod"!#ion of goods and ser'i!es as we as

e$&o%$en#. In #is wa% #e finan!ia s%s#e$ !on#rib"#es #o in!reased &ros&eri#%.

D(4)#6)"%)ge4

Tere are so$e diffi!"#ies disad'an#ages and &robe$s asso!ia#ed wi#

in'es#$en# in sares.

1 ;n!er#ain#% and !anging $arke# &ri!es

2 9o ,"aran#ee of Profi#s

3 Probe$s in deaing wi# brokers

4 :'ers"bs!riion of new iss"es

5 9eed for !ons#an# Ea#!

6 orre!# Ti$ing

7 ;n!er#ain ,o'ern$en# Poi!ies

8 +eeking &rofessiona g"idan!e

30
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Re*e"% T$e"# (" S&)$e M)$7e%

,enera% #rend foowing is #e i$i#a#ion of wa# is #e !"rren# fasion aso

!aed #rend. In finan!e #rend foowing is an in'es#$en# s#ra#eg% #a# #ries #o #ake

ad'an#age of ongG#er$ $o'es #a# see$ #o &a% o"# in 'ario"s $arke#s. Te s%s#e$ ai$s

#o work on #e $arke# #rend $e!anis$ and #ake benefi# fro$ bo# sides of #e $arke#

en*o%ing #e &rofi#s fro$ #e upsand downsof #e s#o!k $arke#.

Traders wo "se #is a&&roa! !an "se !"rren# $arke# &ri!e !a!"a#ion $o'ing

a'erages and !anne breako"#s #o de#er$ine #e genera dire!#ion of #e $arke# and #o

genera#e #rade signas. Traders wo s"bs!ribe #o a #rend foowing s#ra#eg% do no# ai$ #o

fore!as# or &redi!# $arke#s or &ri!e e'esL #e% si$&% *"$& on #e #rend and ride i#.

Co"4(#e$)%(o"4

P$(*e

:ne of #e firs# r"es of #rend foowing is #a# &ri!e is #e $ain !on!ern. Traders

$a% "se o#er indi!a#ors sowing were &ri!e wi go ne# or wa# i# so"d b"# as a

genera r"e #ese so"d be disregarded. A #rader need on% be worried abo"# wa# #e

$arke# is doing no# wa# #e $arke# $ig# do. Te !"rren# &ri!e and on% #e &ri!e #e

%o" wa# #e $arke# is doing.

31
http://en.wikipedia.org/wiki/Imitationhttp://en.wikipedia.org/wiki/Fashionhttp://en.wikipedia.org/wiki/Trendhttp://en.wikipedia.org/wiki/Financehttp://en.wikipedia.org/wiki/Investment_strategyhttp://en.wikipedia.org/wiki/Financial_marketshttp://en.wikipedia.org/wiki/Market_trendshttp://en.wikipedia.org/wiki/Financial_instrumentshttp://en.wikipedia.org/wiki/Trader_(finance)http://en.wikipedia.org/wiki/Trader_(finance)http://en.wikipedia.org/wiki/Moving_average_(technical_analysis)http://en.wikipedia.org/wiki/Moving_average_(technical_analysis)http://en.wikipedia.org/wiki/Indicatorshttp://en.wikipedia.org/wiki/Imitationhttp://en.wikipedia.org/wiki/Fashionhttp://en.wikipedia.org/wiki/Trendhttp://en.wikipedia.org/wiki/Financehttp://en.wikipedia.org/wiki/Investment_strategyhttp://en.wikipedia.org/wiki/Financial_marketshttp://en.wikipedia.org/wiki/Market_trendshttp://en.wikipedia.org/wiki/Financial_instrumentshttp://en.wikipedia.org/wiki/Trader_(finance)http://en.wikipedia.org/wiki/Moving_average_(technical_analysis)http://en.wikipedia.org/wiki/Moving_average_(technical_analysis)http://en.wikipedia.org/wiki/Moving_average_(technical_analysis)http://en.wikipedia.org/wiki/Indicators


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Mo"e? M)")gee"%

Ano#er de!isi'e fa!#or of #rend foowing is no# #e #i$ing of #e #rade or #e

indi!a#or b"# ra#er #e de!ision of ow $"! #o #rade o'er #e !o"rse of #e #rend.

R(47 Co"%$o

A !"# oss is #e r"e. Tis $eans #a# d"ring &eriods of iger $arke# 'oa#ii#%

#e #rading si4e is red"!ed. -"ring osing &eriods &osi#ions are red"!ed and #rade si4e is

!"# ba!k. Te $ain ob*e!#i'e is #o &reser'e !a&i#a "n#i $ore &osi#i'e &ri!e #rends

rea&&ear.

R'e4

Trend foowing so"d be s%s#e$a#i!. Pri!e and #i$e are &i'o#a a# a #i$es. Tis

#e!niC"e is no# based on an ana%sis of f"nda$en#a s"&&% or de$and fa!#ors.

Trend 7oowing answers #e C"es#ionsG

1 How and wen #o en#er #e $arke#.

2 How $an% !on#ra!#s or sares #o #rade a# an% #i$e.

3 How $"! $one% #o risk on ea! #rade.

4 How #o ei# #e #rade if i# be!o$es "n&rofi#abe.

5 How #o ei# #e #rade if i# be!o$es &rofi#abe.

In in'es#ing finan!ia $arke#s are !o$$on% beie'ed #o a'e $arke# #rends #a#

!an be !assified as &ri$ar% #rends se!ondar% #rends (sor#G#er$) and se!"ar #rends

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(ongG#er$). Tis beief is genera% !onsis#en# wi# #e &ra!#i!e of #e!ni!a ana%sis and

broad% in!onsis#en# wi# #e s#andard a!ade$i! 'iew of finan!ia $arke#s #e effi!ien#

$arke# %&o#esis. Ta# $arke# &ri!es do $o'e in #rends is one of #e $a*or ass"$ions

of #e!ni!a ana%sis and #e des!riion of $arke# #rends is !o$$on #o Ea +#ree#.

Marke# #rends are des!ribed as &eriods wen b"s (b"%ers) !onsis#en#%

o"#n"$ber bears (seers) or 'i!e 'ersa. A b" or bear $arke# des!ribes #e #rend and

sen#i$en# dri'ing i# b"# !an aso refer #o s&e!ifi! se!"ri#ies and se!#ors.

P$()$? )$7e% %$e"#4

A b" $arke# #ends #o be asso!ia#ed wi# in!reasing in'es#or !onfiden!e

$o#i'a#ing in'es#ors #o b"% in an#i!i&a#ion of f"r#er !a&i#a gains. Te onges# and $os#

fa$o"s b" $arke# was in #e 1BB0s wen #e ;.+. and $an% o#er goba finan!ia

$arke#s grew a# #eir fas#es# &a!e e'er.

In des!ribing finan!ia $arke# bea'ior #e arges# gro"& of $arke# &ar#i!i&an#s is

of#en referred #o $e#a&ori!a% as a erd. Tis is es&e!ia% ree'an# #o &ar#i!i&an#s in

b" $arke#s sin!e b"s are erding ani$as. A b" $arke# is aso des!ribed as a b" r"n.

-ow Teor% a##e$s #o des!ribe #e !ara!#er of #ese $arke# $o'e$en#s.

Se*o"#)$? )$7e% %$e"#4

A se!ondar% #rend is a #e$&orar% !ange in &ri!e wi#in a &ri$ar% #rend. Tese

"s"a% as# a few weeks #o a few $on#s. A #e$&orar% de!rease d"ring a b" $arke# is

33
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!aed a !orre!#ionL a #e$&orar% in!rease d"ring a bear $arke# is !aed a bear $arke#

ra%. Ee#er a !ange is a !orre!#ion or ra% !an be de#er$ined on% wi# indsig#.

Een #rends begin #o a&&ear $arke# ana%s#s deba#e we#er i# is a !orre!#ionra% or a

new b"bear $arke# b"# i# is diffi!"# #o #e. A !orre!#ion so$e#i$es foresadows a bear

$arke#.

R(47 (" ) T$)#(%(o") Se"4e

Risk in oding se!"ri#ies is genera% asso!ia#ed wi# #e &ossibii#% #a# reai4ed

#e re#"rn wi be ess #an #e re#"rns #a# are e&e!#ed. Te so"r!e of s"!

disa&&oin#$en# is #e fai"re of di'idends (in#eres#) and or #e se!"ri#%s ri!e #o

$a#eriai4e as e&e!#ed.

7or!es #a# !on#rib"#e #o 'aria#ion in re#"rnG &ri!e or di'idendG !ons#i#"#e ee$en#s

of risk. +o$e inf"en!es are e#erna #o #e fir$ !anno# be !on#roed and affe!# arge

n"$bers of se!"ri#ies. :#er inf"en!es are in#erna #o #e fir$ and !on#roabe #o a arge

degree. In in'es#$en#s #ose for!es #a# are "n!on#roabe e#erna and broad in #eir

effe!# are !aed So'$*e o+ S?4%e)%(* R(47. on'erse% !on#roabe in#erna fa!#ors

so$ewa# &e!"iar #o ind"s#ries and or fir$s are referred #o as +o"r!es o+ U"4?4%e)%(*

R(47.

S?4%e)%(* R(47 refers #o #a# &or#ion of #o#a 'ariabii#% in re#"rn !a"sed b%

fa!#ors affe!#ing #e &ri!es of a se!"ri#ies. !ono$i! &oi#i!a and so!ioogi!a !anges

are so"r!es of s%s#e$a#i! risk.

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U"4?4%e)%(* R(47 is #e &or#ion of #o#a risk #a# is "niC"e #o a fir$ or ind"s#r%.

7a!#ors s"! as $anage$en# !a&abii#% !ons"$er &referen!es and abor s#rikes !a"se

s%s#e$a#i! 'ariabii#% of re#"rn in a fir$. ;ns%s#e$a#i! fa!#ors are arge% inde&enden# of

fa!#ors affe!#ing se!"ri#ies $arke#s in genera. /e!a"se #ese fa!#ors affe!# one fir$ #e%

$"s# be ea$ined for ea! fir$.

TECHNICAL ANALYSIS

Te!ni!a ana%sis is #e s#"d% of &ri!e "sing !ar#s in order #o Kan#i!i&a#eK #eir

f"#"re &erfor$an!e.Te $arke# !an go "& or down a# an% #i$eL i# is on% #e &robabii#%

(of ea! $o'e) #a# 'aries. Te!ni!a ana%sis isnD# a !r%s#a ba #a# &redi!#s #e f"#"re

b"# i# is an in'es#ing s#ra#eg% #a# e&s #o s&o# s#o!k &a##erns #a# a'e #e &o#en#ia #o

$ake "ge $o'es.

Te basi! &re$ise of #e!ni!a ana%sis is #a# &ri!e $o'es in #rend or wa'es

wi! $a% be "&ward or downward. I# is beie'ed #a# &resen# #rend are inf"en!ed b% #e

&as# #rends and #a# &ro*e!#ions of f"#"re #rend is &ossibe b% an ana%sis of &as# &ri!e

#rends. Te!ni!a ana%sis is rea% a s#"d% of &as# or is#ori!a &ri!e and 'o"$e

$o'e$en#s so as #o &redi!# #e f"#"re s#o!k &ri!e bea'io"r.

Se"%(e"% #$(6e4 %&e )$7e%

Te &ri!e a# wi! an in'es#or is wiing #o b"% or se de&ends &ri$ari% on is

e&e!#a#ions. If e e&e!#s #e se!"ri#%Ds &ri!e #o rise e wi b"% i#L if #e in'es#or

e&e!#s #e &ri!e #o fa e wi se i#. As an% #rade reC"ires a b"%er and seer i#

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a"#o$a#i!a% $eans #e% a'e en#ire% o&&osi#e 'iews on #e s#o!k. Te !oe!#i'e

$a*ori#% of $arke# &ar#i!i&an#s "#i$a#e% de!ide #e dire!#ion of #e s#o!k &ri!e and #e

$arke#.

P$(*e $e+e*%4 e6e$?%&("g

Pri!e is a f"n!#ion of de$and and s"&&% and no#ing ese. Te &ri!e of a s#o!k

refe!#s e'er%#ing abo"# #e s#o!k. Tis in!"des 7II infows ana%s# re&or#s baan!e

see#s i$&a!# of !r"de and in#eres# ra#es go'ern$en# &oi!ies &oi#i!ians and #eir an#i!s

and wa#e'er %o" $a% !are add. -ifferen# &eo&e a'e 'ar%ing degrees of a!!ess #o #is

infor$a#ion and for$ #eir own &er!eion (rig#% or wrong%) G #is "#i$a#e% de!ides

#e !"rren# &ri!e of #e s#o!k. +in!e e'er%#ing abo"# a s#o!k is refe!#ed in #e &ri!e i#

$akes sense #o s#"d% &ri!e $o'e$en#s. In o#er words Kwa# is a&&eningK is $ore

i$&or#an# #an Kw% i# is a&&ening@. Tr%ing #o iden#if% #e Kw%K is an eer!ise in

f"#ii#%. :ne !an arri'e a# an% n"$ber of reasons de&ending on ow $an% Ke&er#sK %o"

!oose #o is#en #o.

Te bea"#% of #e!ni!a ana%sis is #a# i# a&&ies #o a #i$e fra$es (in#rada%

dai% week% $on#% !ar#s) and a!ross eC"i#ies !o$$odi#ies (ri!e god !r"de oi

a"$in"$ e#!).

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T&e e)4(e4% )"# 4)+e4% )? %o e)$" e*ee"% >$o+(%4 *o"4(4%e"%? (4 %o 4(>? +oo

%&e %$e"# )"# %$)#e

/% foowing #e #rend we !an awa%s be on #e Krig#K side of #e $arke#.

Trend ana%sis e&s dis#ing"is e$o#iona de!isions (KI #ink i#Ds #i$e #o se...K)

fro$ ana%#i!a de!isions (KI wi od "n#i #e !"rren# rising #rend is brokenK). Trend

ana%sis wi aso dis!o"rage %o" fro$ going sor# in a b"is $arke# or going ong in

a bearis $arke#

&)% (4 ) %$e"#

A #rend is si$&% #e &ersis#en!e of a se!"ri#%Ds &ri!e #o $o'e in a &ar#i!"ar

dire!#ion. A #rend !an be b"is bearis or fa#. Aso a #rend is in effe!# #i i# is re'ersed.

Marke#s are ei#er b"is or bearis or fa#. Howe'er $arke#s ne'er go "& or

down in a s#raig# ine. Tere are awa%s !orre!#ions (in b"is $arke#s) and &"ba!ks or

reief raies (in bearis $arke#s). /% iden#if%ing #rends and re'ersas we !an en#er and

ei# #rends a# #e !orre!# #i$e and earn e!een# &rofi#s wi# $ini$"$ risks.

Tis is #e $os# basi! !ar#. Take #e foowing !ar#. A si$&e ook re'eas #a#

#e s#o!k as been in an "rend and as $inor !orre!#ions fro$ #i$e #o #i$e. ine !ar#s

are &o##ed "sing #e K!osingK &ri!e of #e s#o!k. Te red ine re&resen#s #e 50 da%

$o'ing a'erage (-MA).

3J


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J)>)"e4e C)"#e4%(*74 C&)$%

a&anese ande s#i!ks (a 300 %ear od a&anese #e!niC"e) gi'e #e sa$e

infor$a#ion as a bar b"# are 'is"a% easier #o read. In #is !ar# #e iges# &ri!e #e

owes# &ri!e #e o&ening &ie!e and #e !osing &ri!e of #e sare on a da%G#oGda% basis.

Te iges# &ri!e and #e owes# &ri!e are *oined b% 'er#i!a bar. Te o&ening &ri!e and

#e !osing &ri!e of #e da% wi! wo"d fa be#ween #e iges# and #e owes# &ri!e

wo"d be re&resen#ed b% a re!#ange so #a# #e &ri!e bar !ar# ooks ike a !andes#i!k.

Red !andes $ean s#o!k !osed ower rea#i'e #o #e &re'io"s !ose. /"e !andes $eans

s#o!k !osed iger rea#i'e #o #e &re'io"s !ose.

38


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Tere are #ree #%&es of !andes#i!k #e b"e #e red and #e do*i or ne"#ra

!andes#i!k. A b"e !andes#i!k is "sed is re&resen# a si#"a#ion were #e !osing &ri!e is

iger #an #e o&ening &ri!e. A ba!k !andes#i!k is "sed wen #e !osing &ri!e of #e

da% is ower #an #e o&ening &ri!e. /"e !andes#i!k indi!a#ed a b"is #rend and #e red

indi!a#es a bearis #rend. A do*i !andes#i!k is one were #e !osing &ri!e and #e

o&ening of #e da% are sa$e.

Mo6("g )6e$)ge4 >$o6(#e )" e*ee"% )? %o (#e"%(+? %$e"#4 o$ *o"+($

$e6e$4)4.

Mo'ing a'erages are no# K&redi!#i'eK b"# are KaggingK indi!a#ors as a #i$e dea%

is awa%s &resen#. Mo'ing a'erages are an e#re$e% si$&e and !on'enien# wa% #o #rade.

Te% are e!een# in s#rong% #rending $arke#s b"# are &ra!#i!a% "seess in sidewa%s

$arke#s as #e% #end #o genera#e #oo $an% wi&saws. Te $o'ing a'erage re$o'es

e$o#ions fro$ #e s#o!k. :ne so"d re$ain ong as ong as #e s#o!k re$ains abo'e #e

MA. Een #e s#o!k !"#s #e MA fro$ abo'e i# indi!a#es ei# &osi#ion.

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Te !ar# beow as 20 -MA (gre%) 50 -MA (red) and 200 -MA (b"e).

+o$e#i$es #e $o'ing a'erage wi gi'e a Kwi&sawK or fase b"% se signas. Tis

$eans #e s#o!k is rangebo"nd and #e dire!#ion wi be !ear on% a break o"# of #e

#rading range. As one !an see fro$ #e !ar# #e 20 -MA as genera#ed #e iges#

wi&saws wie #e 200 -MA as on% gi'en a od (in rea#ion #e #i$efra$e).

O6e$4o# )"# o6e$=o'g&% 4%o*74

In#er&re#a#ion of #is is diffi!"# and so"d be done in #e !on#e# of #e

&re'aiing #rend. :'erbo"g# $eans grea# s#reng#. I# does 9:T $ean s#o!k wi !orre!#

i$$edia#e%. I# is nor$a for a s#o!k #o re$ain o'erbo"g# for !onsiderabe &eriods of

#i$e. :'ersod $eans grea# weakness. I# does 9:T $ean s#o!k wi ra% i$$edia#e%. I#

is nor$a for a s#o!k #o re$ain o'ersod for !onsiderabe &eriods of #i$e. In an "rend

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o'ersod s#o!ks &resen# a good b"%ing o&&or#"ni#% near s"&&or#s (b"% on de!ines). In a

down#rend one so"d ei# o'erbo"g# s#o!ks (se on raies).

O4*()%o$4

:s!ia#ors are $a#e$a#i!a indi!a#ors !a!"a#ed wi# #e e& of #e !osing

&ri!e da#a. Te% e& #o iden#if% o'erbo"g# and o'er sod !ondi#ions and aso #e

&ossibii#% of #e #rend re'ersa. Tese indi!a#ors are !aed os!ia#ors be!a"se #e% $o'e

a!ross a referen!e &oin#.

R)%e o+ C&)"ge I"#(*)%o$

I# is a 'er% &o&"ar os!ia#or wi! $eas"res #e ra#e of !ange of #e !"rren#

&ri!e as !o$&ared #o #e &ri!e of a !er#ain n"$ber of da%s or weeks ba!k. To !a!"a#e a J

da% ra#e of !ange ea! da%s &ri!e is di'idend b% #e &ri!e wi! &re'aied J da%s ago

and #en 1 is s"b#ra!#ed fro$ #e &ri!e ra#io.

Te R: 'a"es $a% be &osi#i'e nega#i'e or 4ero. In R: !ar# #e o'erbo"g#

4one is abo'e #e 4ero ine and o'ersod 4one is beow #e 4ero ine. :ne so"d b"% a

sare #a# is o'ersod and se a sare #a# is o'er bro"g#. Man% ana%s#s "se #e 4ero ine

for iden#if%ing b"%ing and seing o&&or#"ni#ies. ;&side !rossing indi!a#es b"%ing

o&&or#"ni#ies wie a downside !rossing indi!a#es seing o&&or#"ni#ies.

R: as #o be "sed aong wi# #e &ri!e !ar#. Te b"%ing and #e seing signas

indi!a#ed b% #e R: so"d aso be !onfir$ed b% #e &ri!e !ar#.

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R: is !a!"a#ed b% "sing #e foowing for$"aG

R: "rren# Pri!e G1

Pri!e n &eriod age

Re)%(6e S%$e"g%& I"#e RSI

Tis is #e $os# !o$$on% "sed #i$e &eriod for #e !a!"a#ion of R+I I 1 da%s.

7or !a!"a#ion a 1 da%s R+I #e gain &er da% or oss &er da% or oss &er da% is arri'ed a#

b% !o$&aring #e !osing &ri!e of a da% wi# #a# of #e &re'io"s da% for a &eriod of 1

da%s. Te gains are added "& and di'ided b% 1 #o ge# #e a'erage gain &er da%. +i$iar%

osses are added "& and di'ided b% 1 #o ge# #e a'erage oss &er da%.

R+I is !a!"a#ed b% "sing #e foowing for$"aG

R+I A'erage gain &er da%

A'erage oss &er da%

B'? )"# Se 4(g")4

Tese are genera#ed "sing !"s#o$ designed swing #rading agori#$s. As one !an

ne'er know wi# !er#ain#% #e e#en# of gains or osses #e !on!e of #raiing s#o&osses

is "sed.

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If a s#o!k is in a down#rend a b"% signa is genera#ed if #e s#o!k !oses abo'e i#s

K9K da%s iges# ig. Te #raiing s#o&oss is #e K9K da%s owes# ow and wi !ange

e'er%da% #i an ei# is gi'en. Here K9K refers #o 2 or 5 or 20 da%s. :b'io"s% a 2 da%

swing wi genera#e $ore signas #an a 20 da% swing. 7or bes# res"#s "se #e 2 da% or 5

da% swing #o b"% on% if #e s#o!k is #rading abo'e #e 20 da% swing ow. Te

$e#odoog% is si$iar $o'ing a'erages !rosso'ers. Te ad'an#age is red"!ed

wi&saws and $ore effi!ien# s#o&osses.

R)"ge=o'"# %$)#e4- &(>4)4 )"# +)4e 4(g")4

A #e!ni!a indi!a#ors wi fai in range bo"nd s#o!ks $arke#s and wi genera#e

wi&saws and fase signas. Eene'er a swing #rade res"#s in a oss i# $eans #e s#o!k is

range bo"nd. A# #is &oin# one so"d s#"d% #e !ar# and iden#if% areas of s"&&or# and

resis#an!e. :n% a break abo'e #ese e'es wi !rea#e a new #rend.

S'>>o$% )"# Re4(4%)"*e e6e4 %)$ge%4

Tis is no#ing b"# a K&eakK and K#ro"gK based on 5U !ange. Tese e'es for$

#e basis for !a!"a#ion of #arge#s. A break abo'e a K&eakK gi'es a resis#an!e break.

+i$iar% a break beow a K#ro"gK genera#es a s"&&or# break.

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FUNDAMENTAL ANALYSIS

Te earnings of #e !o$&an% #e grow# ra#e and #e risk e&os"re of #e

!o$&an% a'e a dire!# bearing on #e sare .Te sareoders are in#eres#ed in assessing

#e 'a"e of #e sares. Te 'a"e of #e sare de&ends on #e &erfor$an!e of #e fir$

and #e $arke# fa!#ors. Te 'a"a#ion ra#io &ro'ides a !o$&reensi'e $eas"re of #e

&erfor$an!e of #e fir$ i#sef.

Boo7 ,)'e >e$ S&)$e B,P

Tis ra#io indi!a#es #e sare of eC"i#% sareoders af#er #e !o$&an% as &aid a

i#s iabii#ies !redi#ors deben#"res oders and &referen!e sareoders. A# #e #i$e of

iC"ida#ion #e sareoders !an know wa# re$ains af#er $aking a #e &a%$en#s.

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P+ !an be !a!"a#ed asG

E,P E)$"("g4 A+%e$ T)

N'=e$ o+ 4&)$e o'%4%)"#("g

P$(*e E)$"("g R)%(o PE

:ne of #e $os# !o$$on finan!ia &ara$e#ers "sed in #e s#o!k $arke# is #e

&ri!e earning ra#io. I# rea#es #e sare &ri!e wi# earnings &er sare. Mos# of #e news

&a&ers aong wi# #e s#o!k &ri!e C"o#a#ions gi'e #e P ra#io #oo. I#s #e $"#i&%ing

fa!#or #a# #e $arke# is wiing #o offer #o #e !o$&an%s f"#"re earning.

P ra#io !an be !a!"a#ed asG

P$(*e E)$"("g R)%(o M)$7e% >$(*e >e$ 4&)$e

E)$"("g4 >e$ 4&)$e

5


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CHAPTER25

DATA ANALYSIS AND INTERPRETATION

CHI2SUARE TEST21

B)*7g$o'"#

A s"r'e% ad been !ond"!#ed a$ong #e in'es#ors of 'ario"s bran!es and C"es#ion were

asked #o de#er$ine if #ere was a rea#ionsi& be#ween #e age gro"& of #e in'es#ors and

&"r&ose of in'es#$en# in sare $arke#.

NULL HYPOTHESIS 2HO: Tere is no signifi!an!e differen!e be#ween #e age gro"&

of #e in'es#ors and &"r&ose of in'es#$en# in sare $arke#.

ALTERNATE HYPOTHESIS2H1: Tere is signifi!an!e differen!e be#ween #e age

gro"& of #e in'es#ors and &"r&ose of in'es#$en# in sare $arke#.

TABLE25.1

T)=e 4&o("g )ge 64. >'$>o4e o+ ("6e4%e"% (" 4&)$e )$7e%

C)>(%)

Age S)6("g4 L('(#(%? A>>$e*()%(o" D(6(#e"# TOTAL

1280?$4 50 25 85 5 165

8120?$4 15 10 35 5 65

0?$49A=o6e 5 5 5 5 20

TOTAL J0 A0 125 15 250

6


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CALCULATION:

O=4e$6e# EB>e*%e# F$eH'e"*?

F$e'e"*? O( E( O(2E( O(2E(!E(

50 A6.2 3.8 0.31255A113

15 18.2 G3.2 0.56263J363

5 5.6 G0.6 0.06A285J1A

25 26.A G1.A 0.0JA2A2A2A

10 10.A G0.A 0.01538A615

5 3.2 1.8 1.0125

85 82.5 2.5 0.0J5J5J5J6

35 32.5 2.5 0.1B230J6B25 10 G5 2.5

5 B.B GA.B 2.A25252525

5 3.B 1.1 0.310256A1

5 1.2 3.8 12.03333333

TOTAL 1;.5:511::

RESULT:

C)*')%e# ,)'e 1;.551

Deg$ee O+ F$ee#o

T)=e ,)'e 5 S(g"(+(*)"*e 1!.5;!

INFERENCE:

As #e !a!"a#ed 'a"e is $ore #an #abe 'a"e n" %&o#esis H0 is re*e!#ed.

Tere is signifi!an!e differen!e be#ween #e age gro"& of #e in'es#ors and &"r&ose of

in'es#$en# in sare $arke#.

J


59/129

CHI2SUARE TEST2!

B)*7g$o'"#

A s"r'e% ad been !ond"!#ed a$ong #e in'es#ors of 'ario"s bran!es and C"es#ion were

asked #o de#er$ine if #ere was a rea#ionsi& be#ween #e gender and infor$a#ion #e%

seek before in'es#ing in #e s#o!k $arke#.

NULL HYPOTHESIS 2 HO: Tere is no signifi!an!e differen!e be#ween #e gender

and infor$a#ion #e% seek before in'es#ing in #e s#o!k $arke#.

ALTERNATE HYPOTHESIS 2 H1: Tere is signifi!an!e differen!e be#ween #e

gender and infor$a#ion #e% seek before in'es#ing in #e s#o!k $arke#.

TABLE25.!

T)=e 4&o("g ge"#e$ 64 ("+o$)%(o" %&e? 4ee7 +o$ ("6e4%("g (" 4%o*7 )$7e%.

I"+o$)%(o" M)e Fe)e TOTAL

B$o7e$4 A5 30 J5

T,- Ne4>)>e$4- ("%e$"e% A0 15 55

Se+ )")?4(4 A0 20 60

Coe)g'e4 9 F$(e"#4 A0 20 60

TOTAL 165 85 250

8


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CALCULATION:

O=4e$6e# EB>e*%e# O(2E( OC(2EC(!EC(

F$e'e"*? O( F$eH'e"*? EC(

A5 AB.5 GA.5 0.A0B0B0B0B

A0 36.3 3.J 0.3JJ13AB86

A0 3B.6 0.A 0.00A0A0A0A

A0 3B.6 0.A 0.00A0A0A0A

30 25.5 A.5 0.JBA11J6AJ

15 18.J G3.J 0.J32085561

20 20.A G0.A 0.00J8A313J

20 20.A G0.A 0.00J8A313J

To%) !.331;1

RESULT:

C)*')%e# ,)'e!.331;1

Deg$ee O+ F$ee#o 3

T)=e ,)'e 5

S(g"(+(*)"*e .15

INFERENCE:

As #e !a!"a#ed 'a"e is ess #an #abe 'a"e n" %&o#esis H0 is a!!eed.

Tere is no signifi!an!e differen!e be#ween #e gender and infor$a#ion #e% seek before

in'es#ing in #e s#o!k $arke#.

B


61/129

CHI2SUARE TEST23

B)*7g$o'"#

A s"r'e% ad been !ond"!#ed a$ong #e in'es#ors of 'ario"s bran!es and C"es#ions

were asked #o de#er$ine if #ere was a rea#ionsi& be#ween #e gender and risk #aking

abii#% of #e in'es#ors.

NULL HYPOTHESIS 2 HO: Tere is no signifi!an!e differen!e be#ween #e gender

and risk #aking abii#% of #e in'es#ors.

ALTERNATE HYPOTHESIS 2 H1: Tere is signifi!an!e differen!e be#ween #e

gender and risk #aking abii#% of #e in'es#ors.

TABLE25.3

T)=e 4&o("g ge"#e$ 64. $(47 %)7("g )=((%? o+ %&e ("6e4%o$4 .

R(47 M)e Fe)e TOTAL

Q10 50 30 80

!5 60 20 80

50 15 5 20

No% )% ) A0 30 J0

TOTAL 165 85 250

50


62/129

CALCULATION:

O=4e$6e# EB>e*%e# O(2E( O(2E(!E(

F$e'e"*? O( F$eH'e"*? EC(

50 52.8 G2.8 0.1A8A8A8A8

60 52.8 J.2 0.B81818182

15 13.2 1.8 0.2A5A5A5A5

A0 A6.2 G6.2 0.83203A632

30 2J.2 2.8 0.2882352BA

20 2J.2 GJ.2 1.B05882353

5 6.8 G1.8 0.AJ6AJ0588

30 23.8 6.2 1.61512605

To%) .8;3508;8

RESULTS:

C)*')%e# ,)'e .8;3508;8

Deg$ee O+ F$ee#o 3

T)=e ,)'e 5

S(g"(+(*)"*e .15

INFERENCE:

As #e !a!"a#ed 'a"e is ess #an #abe 'a"e n" %&o#esis H0 is a!!eed.

Tere is no signifi!an!e differen!e be#ween #e gender and risk #aking abii#% of #e

in'es#ors.

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IN,ESTOR@S PERCEPTION TOARDS STOC/ MAR/ET

B)*7g$o'"#:

A s"r'e% ad been !ond"!#ed a$ong #e re#ai in'es#ors of 'ario"s bran!es and C"es#ion

were asked #o de#er$ine #eir &er!eion #owards s#o!k $arke# fro$ risk re#"rn and

sa'ings &oin# of 'iew.

TABLE25.8

T)=e 4&o("g ("6e4%o$@4 >e$*e>%(o" %o)$#4 4%o*7 )$7e%

R)"7 Pe$*e>%(o" e(g&%e# A6e$)ge

1 Re%'$" >o("% o+ 6(e !.

! S)6("g4 >o("% o+ 6(e !.0

3 R(47 >o("% o+ 6(e !.3

INFERENCE:

:n #e basis of weig#ed a'erage $e#od i# as been fo"nd #a# #e $a*ori#% of

#e res&onden#s (36U) !onsider s#o!k $arke# is a bes# a'en"e for in'es#$en# fro$ re#"rn

&oin# of 'iew. 7ro$ sa'ings &oin# of 'iew 35U of #e res&onden# !onsider s#o!k $arke#

as a good oion. :n% 2BU 'iew i# fro$ risk &oin# of 'iew.

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CHART25.1

C&)$% 4&o("g ("6e4%o$@4 >e$*e>%(o" %o)$#4 4%o*7 )$7e% +$o $(47- $e%'$" )"#

4)6("g4 >o("% o+ 6(e

Return !"nt !#

$%&'(& )"e*

S+)"n- !"nt !#

)"e*

R"-. !"nt !# )"e*

'/&


65/129

53


66/129

SECTOR

B)*7g$o'"#


were asked #o de#er$ine #e $os# &referred se!#or b% #e$.

TABLE25.5

T)=e 4&o("g %&e o4% >$e+e$$e# 4e*%o$ =? %&e ("6e4%o$4

Rank +e!#or Eeig#ed A'erage

1 /anking .16

2 :i gas 3.08

3 ons#r"!#ion 2.28

Infras#r"!#"re 1.J

5 +#ee 0.88

6 I.T 0.5

J A"#o$obie 0.32

8 :#ers 0.30

INFERENCE:

Te abo'e #abe sows #e #o& eig# se!#ors fro$ in'es#ors &oin# of 'iew. I#s !ear

#a# $a*ori#% of #e$ &refer banking se!#or (52U) foowed b% :i ,as (U)

ons#r"!#ion (38U) Infras#r"!#"re (3U)+#ee (22U) IT (18U) A"#o$obies (16U) and

o#ers (30U). :#er se!#or in!"des 7M, Re#ai e$en# and Par$a!e"#i!a.

5


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CHART25.!

C&)$% 4&o("g %&e o4% >$e+e$$e# 4e*%o$ =? %&e ("6e4%o$4

4.5 012(4

'1343.53

$1$42.5

21521.5

3144 31/0131'$ 31'

0.5

0

g s re l T sn e . eI r

n ga tio u Ste

uto!o"il

e#i ct h

$t

n c u

%a l tru

frastr

& i

% nso

Cn

I


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55


69/129

PERCENTAGE OF IN,ESTOR@S SA,ING IN STOC/ MAR/ET

B)*7g$o'"#


were asked #o de#er$ine #eir &er!en#age of sa'ings in s#o!k $arke#.

TABLE25.

T)=e 4&o("g %&e >e$*e"%)ge o+ ("6e4%o$@4 4)6("g4 (" 4%o*7 )$7e%

+a'ing Per!en#age 9o. of Res&onden#s Per!en#ageIn s#o!k $arke# (U)

Q10 J5 30

11230 J0 28

31250 35 1A

50 9 )=o6e 15 6

No% )% ) ("6e4%("g 55 22

To%) !50 100

INFERENCE:

I# is inferred fro$ #e abo'e #abe #a# 30U of #e in'es#ors in'es# ess #an 10U

of #eir in sare $arke#. 28U of #e$ in'es# 11G30U and 1U of #e$ in'es# 31G50U of

#eir sa'ings in sare $arke#. :n% 6U in'es# abo'e 50U in #e sare $arke#. Howe'er

22 U do no# in'es# in #e $arke#.

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70/129

CHART25.3

C&)$% 4&o("g %&e >e$*e"%)ge o+ ("6e4%o$@4 4)6("g4 (" 4%o*7 )$7e%

'0 5/ 53(0

//)0

50

'/40

30

2/20

10

0

*10+ 11,30+ 31,50+ 50+ $ -ot at all

a"o.e in.esting

-+)"n- "n -6+re 7+r.et


71/129

5J


72/129

RA+:9 7:R I9 MAR>T

B)*7g$o'"#


were asked #o de#er$ine differen# fa!#ors based on wi! #e% sa'e in #e s#o!k $arke#

TABLE25.

T)=e 4&o("g 6)$(o'4 $e)4o"4 +o$ ("6e4%("g (" %&e 4%o*7 )$7e%

Re)4o" +o$ ("6e4%("g (" No. o+ Pe$*e"%)ge

4&)$e )$7e% Re4>o"#e"%4

S)6("g4 J0 28

L('(#(%? A0 16

C)>(%) A>>$e*()%(o" 125 50

D(6(#e"# 15 6

To%) !50 100

INFERENCE:

Abo'e #abe sows #a# $a*ori#% of #e (50U) in'es#ors in'es# in s#o!k $arke# for

!a&i#a a&&re!ia#ion. Eie 28U of #e$ in'es# for sa'ing &"r&ose and 16U for iC"idi#%.

:n% 6U in'es# for earning di'idend.

58


73/129

CHART25.8

C&)$% 4&o("g 6)$(o'4 $e)4o"4 +o$ ("6e4%("g (" %&e 4%o*7 )$7e%

S+)"n-

(&$4& L"8u"9"t:

C+"t+;

/3&2(&

Are


74/129

5B


75/129

TIME FRAME OF THE IN,ESTMENT PREFERRED BY THE IN,ESTORS

B)*7g$o'"#


were asked #o de#er$ine #e #er$ of in'es#$en# #e% &refer.

TABLE25.

T)=e 4&o("g %&e %(e +$)e o+ %&e ("6e4%e"% >$e+e$$e# =? %&e $e4>o"#e"%

T(e +$)e o+ %&e("6e4%e"% >$e+e$$e# =? No. o+ Re4>o"#e"%4 Pe$*e"%)ge

%&e $e4>o"#e"%

S&o$% %e$ 125 50

Me#(' %e$ J5 30

Lo"g %e$ 50 20

To%) !50 100

INFERENCE:

Te #abe sows #a# 50U of #e res&onden#s &refer sor#G#er$ in'es#$en# in #e

s#o!k $arke#. Eie 20U of #e$ wo"d ike #o go for $edi"$ #er$ and on% 20U of #e

in'es#ors &refer ong #er$.

60


76/129

CHART25.5

C&)$% 4&o("g %&e %(e +$)e o+ %&e ("6e4%e"% >$e+e$$e# =? %&e $e4>o"#e"%

$3&S6!rt ter7

Me9"u7 ter7

/3& L!n ter7

'3&

61


77/129

RIS/ TA/ING ABILITY OF THE IN,ESTORS

B)*7g$o'"#


were asked #o de#er$ine riskGbearing !a&a!i#%.

TABLE25.;

T)=e 4&o("g %&e $(47 %)7("g )=((%? o+ %&e ("6e4%o$4

R(47 No. o+ Re4>o"#e"%4 Pe$*e"%)ge

10 J0 28

!5 B0 36

50 20 8

No% )% ) J0 28

To%) !50 100

INFERENCE:

Te abo'e #abe sows #a# $a*ori#% of #e in'es#ors (36U) wi #ake 25U of risk

on #eir in'es#ed !a&i#a. Eie 28U of #en wi bear 10U of risk. :n% 8 U of #e$ are

read% #o #ake $ore #an 50U of risk. Howe'er 28U of #e in'es#ors are no# read% #o #ake

an% risk on #eir in'es#ed !a&i#a.

62


78/129

CHART25.

C&)$% 4&o("g %&e $(47 %)7("g )=((%? o+ %&e ("6e4%o$4

$4&

23&

$4&

$/&

4&/3&

N!t +t +;;'(&

63


79/129

INFORMATION BASED ON HICH IN,ESTMENTS ARE MADE IN THE

STOC/ MAR/ET

B)*7g$o'"#


were asked #o de#er$ine wose ad'i!e #e% wo"d seek before in'es#ing in s#o!k $arke#.

TABLE25.10

T)=e 4&o("g ("+o$)%(o" =)4e# o" &(*& ("6e4%e"%4 )$e )#e (" 4%o*7 )$7e%

I"+o$)%(o" No. o+ Re4>o"#e"%4 Pe$*e"%)ge

B$o7e$4 J0 28

Se+ )")?4(4 60 2A

T,*&)""e4- 60 2A

Ne4>)>e$49 I"%e$"e%

Coe)g'e4 9 F$(e"#4 60 2A

To%) !50 100

INFERENCE:

Te #abe sows #a# 28U of #e res&onden#s wi seek s#o!kbrokers ad'i!e

before in'es#ing in s#o!k $arke#. Eie res# of #e in'es#ors wo"d $ake in'es#$en#

de!ision based on sef ana%sis or T< !annes in#erne# or !oeges friend for s#o!k

$arke# infor$a#ion and &erfor$an!es.

6


80/129

CHART25.

C&)$% 4&o("g ("+o$)%(o" =)4e# o" &(*& ("6e4%e"%4 )$e )#e (" %&e

4%o*7 )$7e%

Br!.er-

$0&$4& Se;# +n+;:-"-

TV


81/129

DIFFICULTIES FACED HILE IN,ESTING IN STOC/ MAR/ET

TABLE211

B)*7g$o'"#


were asked #o de#er$ine wa# are #e diffi!"#ies fa!ed b% #e$ wie in'es#ing in #e

s#o!k $arke#.

4&o("g %&e D(++(*'%(e4 +)*e# =? %&e ("6e4%o$4

D(++(*'%(e4 No. o+ Re4>o"#e"%4 Pe$*e"%)ge

No #(++(*'%(e4 60 2A

L)*7 o+ 7"oe#ge 60 2A

)=o'% %&e )$7e%

Be("g *&e)%e# =? %&e 25 10

=$o7e$4

F)4e ("+o$)%(o" 55 22

$'o$4

L)*7 o+ +'"#4 30 12

H(g& =$o7e$)ge 20 8

To%) !50 100

INFERENCE:

I# is inferred fro$ abo'e #abe #a# $a*ori#% of #e res&onden#s(2U) !onsider a!k

of knowedge abo"# #e s#o!k $arke# is #e bigges# diffi!"#% #e% fa!e !ose% foowed

b% fase infor$a#ion and r"$ors(22U). Eie o#er diffi!"#ies in!"des a!k of f"nds

(12U) being !ea#ed b% brokers (10U) and ig brokerage (8U). Howe'er 2U of #e

res&onden#s do no# fa!e an% diffi!"#% wie #rading.

66


82/129

CHART25.

C&)$% 4&o("g %&e D(++(*'%(e4 +)*e# =? %&e ("6e4%o$4 &(e ("6e4%("g

(" S%o*7 )$7e%

'3

(3

//

$3

N!9"##"r!.er-

H"6>r!.er+e

F+;-

e

"n#!

r7+

t"!n

?

ru7

!r-

L+


83/129

ICICI BAN/

B'4("e44 P$o+(e

III /ank was origina% &ro$o#ed in 1BB b% III i$i#ed an Indian

finan!ia ins#i#"#ion and was i#s wo%Gowned s"bsidiar%. III /ank is IndiaDs se!ondG

arges# bank wi# #o#a asse#s of Rs. 3J6J.00 biion (;+V B6 biion) a# -e!e$ber 31

200J and &rofi# af#er #a of Rs. 30.08 biion for #e nine $on#s ended -e!e$ber 31

200J. III /ank is se!ond a$ongs# a #e !o$&anies is#ed on #e Indian s#o!k

e!anges in #er$s of free foa# $arke# !a&i#aisa#ion.

Te /ank as a ne#work of abo"# B55 bran!es and 368J ATMs in India and

&resen!e in 1J !o"n#ries. III /ank offers a wide range of banking &rod"!#s and

finan!ia ser'i!es #o !or&ora#e and re#ai !"s#o$ers #ro"g a 'arie#% of dei'er% !annes

and #ro"g i#s s&e!iaised s"bsidiaries and affiia#es in #e areas of in'es#$en# banking

ife and nonGife ins"ran!e 'en#"re !a&i#a and asse# $anage$en#. Te /ank !"rren#%

as s"bsidiaries in #e ;ni#ed >ingdo$ R"ssia and anada bran!es in ;ni#es +#a#es

+inga&ore /arain Hong >ong +ri anka Oa#ar and -"bai In#erna#iona 7inan!e

en#re and re&resen#a#i'e offi!es in ;ni#ed Arab $ira#es ina +o"# Afri!a

/angades Taiand Maa%sia and Indonesia. ;> s"bsidiar% as es#abised a bran! in

/egi"$.

III /ankDs eC"i#% sares are is#ed in India on /o$ba% +#o!k !ange and #e

9a#iona +#o!k !ange of India i$i#ed and i#s A$eri!an -e&osi#ar% Re!eis (A-Rs)

are is#ed on #e 9ew =ork +#o!k !ange (9=+)

68


84/129


-a#e of in!or&ora#ion 1B

Marke# !a&i#aisa#ion Rs.123 B18.05

(Rs. in !ores)

Pri!e Rs.J66.35

Per!en#age of !ange in &ri!e GJ.0U

(7or one %ear)

arnings &er +are (P+) Rs.3.5

Pri!e arning Ra#io (P) 22.2

/ook


85/129

TECHNICAL ANALYSIS

CHART25.;

C&)$% 4&o("g S&)$e P$(*e Mo6ee"% o+ ICICI B)"7

INFERENCE:

Te abo'e !ar# sows #a# #e &erfor$an!e of #e bank is good. Te &ri!e ine

sows an in!reasing #rend. Te &ri!e as in!reased fro$ Rs.120 #o Rs.1500. Mos# of #e

#i$es #e !osing &ri!e of #e da% was iger #an i#s o&ening &ri!e. Ei#e !andes

indi!a#e b"is #rend. In #e as# C"ar#er of 200J #e &erfor$an!e of #e bank was a# i#s

&eak. In #e beginning of 2008 do #o 'ario"s goba &eno$enons #e &ri!e of #e s#o!k

was affe!#ed.

J0


86/129

CHART25.10

C&)$% 4&o("g E>o"e"%() Mo6("g A6e$)ge EMA +o$ ICICI B)"7

INFERENCE:

Mo'e$en# of s#o!k &ri!e ine abo'e #e 200 da%s MA indi!a#es a b"% signa. In

#e beginning of 2003 and in #e se!ond C"ar#er 200 2006 and 200J #e 10Gda%s M


87/129

CHART25.11

C&)$% 4&o("g Re)%(6e S%$e"g%& I"#e +o$ ICICI B)"7

INFERENCE:

R+I 'a"es abo'e 80 indi!a#e #a# #e s#o!k is o'er bo"g# and beow 20 indi!a#es

#a# #e s#o!k is o'er sod. In #e firs# C"ar#er of 2003 #e s#o!ks were o'er sod. -"ring

#e %ear 2005 #e s#o!k was ini#ia% o'er bo"g and C"i!k% i# rea!ed beow 20 and

#ere was a "ge seing wi! foowed for few $on#s. Een #e ine !ross 80 i#s #e

indi!a#ion #o se #e s#o!k and beow 20 indi!a#es #o b"% #e s#o!k.

J2


88/129

CHART25.1!

C&)$% 4&o("g *o>)$(4o" =e%ee" ICICI B)"7 9 NSE

INFERENCE:

Eie !o$&aring #e IIIs &ri!e ine wi# #e 9+ inde. Te &erfor$an!e of

#e bank is good. I# as o"# &erfor$ed #e $arke# inde.

J3


89/129

HDFC BAN/

Te Ho"sing -e'eo&$en# 7inan!e or&ora#ion i$i#ed (H-7) was a$ongs#

#e firs# #o re!ei'e an Din &rin!i&eD a&&ro'a fro$ #e Reser'e /ank of India (R/I) #o se#

"& a bank in #e &ri'a#e se!#or as &ar# of #e R/IDs iberaisa#ion of #e Indian /anking

Ind"s#r% in 1BB. Te bank was in!or&ora#ed in A"g"s# 1BB in #e na$e of DH-7 /ank

i$i#edD wi# i#s regis#ered offi!e in M"$bai India. H-7 /ank !o$$en!ed o&era#ions

as a +!ed"ed o$$er!ia /ank in an"ar% 1BB5.

Te bank as won #e /"siness Toda% /es# /ank Award 2008 for #e fif#

!onse!"#i'e #i$e... Te a"#orised !a&i#a of H-7 /ank is Rs.50 !rore (Rs..5 biion).

Te &aidG"& !a&i#a is Rs.311.B !rore (Rs.3.1 biion). Te H-7 ,ro"& ods 22.1U of

#e bankDs eC"i#% and abo"# 1B.U of #e eC"i#% is ed b% #e A-+ -e&osi#or% (in res&e!#

of #e bankDs A$eri!an -e&osi#or% +ares (A-+) Iss"e). Ro"g% 31.3U of #e eC"i#% is

ed b% 7oreign Ins#i#"#iona In'es#ors (7IIs) and #e bank as abo"# 1B0000

sareoders. Te sares are is#ed on #e +#o!k !ange M"$bai and #e 9a#iona

+#o!k !ange. Te bankDs A$eri!an -e&osi#or% +ares are is#ed on #e 9ew =ork

+#o!k !ange (9=+) "nder #e s%$bo .In a $ies#one #ransa!#ion in #e Indian

banking ind"s#r% Ti$es /ank i$i#ed (ano#er new &ri'a#e se!#or bank &ro$o#ed b%

/enne## oe$an o. Ti$es ,ro"&) was $erged wi# H-7 /ank #d. effe!#i'e

7ebr"ar% 26 2000. As &er #e s!e$e of a$aga$a#ion a&&ro'ed b% #e sareoders of

bo# banks and #e Reser'e /ank of India sareoders of Ti$es /ank re!ei'ed 1 sare

of H-7 /ank for e'er% 5.J5 sares of Ti$es /ank.

J


90/129


-a#e of in!or&ora#ion 1BB

Marke# !a&i#ai4a#ion Rs. 511.31

(Rs. in !ores)

Pri!e (Rs.) 12J2.60

Per!en#age of !ange in &ri!e 3J.1U

(:ne %ear)

arnings &er +are (P+) Rs.0.15


/ook


91/129

TECHNICAL ANALYSIS

CHART25.13

C&)$% 4&o("g 4&)$e >$(*e o6ee"% +o$ HDFC B)"7

INFERENCE:

Te &ri!e of #e sare as in!reased o'er a &eriod fro$ Rs200 #o Rs.3000.7ro$

#e wi#e !ande i# is !ear #a# $os# of #e da% !osing &ri!e of #e sare was iger #an

i#s o&ening &ri!e. Tis indi!a#es a b"is #rend. Te &ri!e ine #o"!ed Rs.3000 in #e

%ear 200J. 'en #e 'o"$e #raded was ig in 200J i# #o"!ed #en $iions.

J6


92/129

CHART25.18

C&)$% 4&o("g E>o"e"%() Mo6("g A6e$)ge EMA +o$ HDFC B)"7

INFERENCE:

Tro"g o"# #e %ear #ere as been o#s of in#erse!#ion be#ween #wo M


93/129

CHART25.15

C&)$% 4&o("g Re)%(6e S%$e"g%& I"#e +o$ HDFC B)"7

INFERENCE:

In #e beginning of #e %ear 2003 i# was a bearis #rend. a#er i# gained

$o$en#"$ and was o'er bo"g#. Mos# of #e #i$e #e ine as !rossed #o"!ed 80 wi!

indi!a#e #e s#o!k is o'er bo"g#. In #e as# #ree C"ar#er of 200J #e s#o!k was ne'er

o'er sod and was b"is #rend.


94/129

J8


95/129

CHART25.1

C&)$% 4&o("g *o>)$(4o" =e%ee" HDFC =)"7 )"# NSE ("#e

INFERENCE:

o$&aring #e 9+ inde wi# H-7 bank #e &erfor$an!e of #e bank and #e

$arke# inde is a$os# sa$e wi# i##e 'aria#ion. In #e %ear 200J #e s#o!k as o"#

&erfor$ed #e $arke# inde.


96/129

JB


97/129

STATE BAN/ OF INDIA

B'4("e44 P$o+(e

Te /ank is a!#i'e% in'o'ed sin!e 1BJ3 in nonG&rofi# a!#i'i#% !aed o$$"ni#%

+er'i!es /anking. A o"r bran!es and ad$inis#ra#i'e offi!es #ro"go"# #e !o"n#r%

s&onsor and &ar#i!i&a#e in arge n"$ber of wefare a!#i'i#ies and so!ia !a"ses.

:n 1s# "% +#a#e /ank of India was !ons#i#"#ed "nder #e +#a#e /ank of India A!#

1B55 for #e &"r&ose of #aking o'er #e "nder#aking and b"siness of #e I$&eria /ank of

India. Te I$&eria /ank of India was fo"nded in 1B21 "nder #e I$&eria /ank of India

A!# 1B20. Te /ank #ransa!#s genera banking b"siness of e'er% des!riion in!"ding

foreign e!ange $er!an# banking and $"#"a f"nds. 1B5B G Te +/I was regis#ered

wi# an A"#orised !a&i#a of Rs.20 !rores and an iss"ed and &aid "& !a&i#a of Rs.562

50000 di'ided in#o 562500 sares of Rs.100 ea!.

+#a#e /ank of India is #e !o"n#r%s arges# !o$$er!ia /ank in #er$s of &rofi#s

asse#s de&osi#s bran!es and e$&o%ees. +/I wi# i#s eri#age da#ing ba!k #o #e %ear

1806 s#ri'es #o !on#in"o"s% &ro'ide a#es# and "o da#e infor$a#ion on i#s finan!ia

&erfor$an!e. I# bei'es on #e &a# of #rans&aren!% and aow !o$&e#e a!!ess #o a #e

s#akeoders enabing #o#a awareness abo"# #e /ank. Te /ank !o$$"ni!a#es wi# #e

s#akeoders #ro"g a 'arie#% of !annes s"! as #ro"g eG$ai websi#e !onferen!e

!a oneGonGone $ee#ing ana%s#s $ee# and a##endan!e a# In'es#or onferen!e

#ro"go"# #e word.

80


98/129


-a#e of in!or&ora#ion 1B55

Marke# !a&i#ai4a#ion Rs.1 31525.33

(Rs. in !ores)

Pri!e Rs.1605.05

Per!en#age of !ange in &ri!e

83.JU (7or one %ear)

arnings &er +are (P+) Rs.120.AA


/ook


99/129

CHART25.1

C&)$% 4&o("g 4&)$e >$(*e o6ee"% +o$ SBI B)"7

INFERENCE:

Te &ri!e of #e sare as in!reased o'er a &eriod fro$ beow Rs2B0 #o Rs.2500.

7ro$ #e wi#e !ande i# is !ear #a# $os# of #e da% !osing &ri!e of #e sare was $ore

#an i#s o&ening &ri!e. I# was b"is #rend. In #e beginning of 200J #e &erfor$an!e of

#e s#o!k as !o$e down. /"# in #e foowing $on#s i# as &erfor$ed we.

82


100/129

CHART25.1

C&)$% 4&o("g E>o"e"%() Mo6("g A6e$)ge +o$ SBI B)"7

INFERENCE:

Te !ar# indi!a#es #a# #i #e firs# C"ar#er of 200 #e 10 da%s


101/129

83


102/129

CHART25.1;

C&)$% 4&o("g Re)%(6e S%$e"g%& +o$ SBI B)"7

INFERENCE:

Tro"g #e &eriod #e s#o!k was o'er bo"g#. I# was a b"is #rend. :n% on

few o!!asions i# as #o"ged 20. Te &erfor$an!e of #e s#o!k was good in #e %ear

200J.


103/129

8


104/129

CHART25.!0

C&)$% 4&o("g *o>)$(4o" =e%ee" SBI 9 NSE

INFERENCE:

Eie !o$&aring #e 9+ $arke# inde wi# +/I bank #i 2006 #ere is i##e

'aria#ion be#ween #e #wo. /"# in 200J #e s#o!k $o'e$en# as o"# &erfor$ed #e $ark

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