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EQUITY INVESTMENT & ECNOMIC GROWTH IN INDIA (2000-2008)
AND MARKETING STRATEGIES OF RELIGAREUnder the Supervisor: Internal Guide:Mr. Amandeep Shaney Mary Jacintha
(AVP) (Lecturer)RELIGARE SECURITIES CDAC Noida
Presented by: ChandanParsadMBA (SEM) 1
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Objective & Scope of Work
Introduction Religare Securities Limited
Organization Chart
Equity share introductionIntroduction Indian Equity Industry
Introduction of the Company
Analysis
Conclusion
Effect of Economic growth on Share Market
Marketing Strategies of Religare
Suggestions
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Objective: The mainobjective ofthe projectisto analysisthe importance
ofequityinvestmentinthe processofeconomic developmentin India whatisthe
effectofeconomy development and analysisthe which stockis good forinvestment.
Scope of WorkEquityinvestmentin Nifty50 Index during January09tojune09
Company1.SBI
2.Reliance Industry Ltd
3.Larsen & Tourbo Ltd
4.Tata Steel
5.Infosys Technology Ltd
6.Mahindra Satyam Computer
Effect ofEconomy Growth on share Market
Marketing STRATEGIES ofReligare
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Religare Securities Limited (RSL), a 100%subsidiaryofReligare Enterprises Limited is a
leading equity and securitiesfirm in India.
1. RSL is a memberofthe NationalStockExchange ofIndia,BombayStockExchange of
India, Depository Participant with NationalSecurities Depository Limited and Central
DepositoryServices (I) Limited, and is a SEBI approved PortfolioManager.
2. Religare has a verycredible Research and Analysis division, which notonlycaterstothe
need ofour Institutionalclientele,but also givestheirvaluable inputstoinvestment
dealers.
3. Pan India footprint4. Near to your home/office Religare is present in all over India
5. 1800locations across more than 460towns & cities
6. The Company has posted a net profitofRs 31.646 millionin Q1 2009.
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y Vision - Tobuild Religare as a globallytrusted brand in
the financialservices domain and presentit asthe
Investment GatewayofIndia'.y Mission - Providing complete financialcare drivenby
the core valuesofdiligence and transparency.
y BrandEssence - Corebrand essence is Diligence and
Religare is drivenby ethical and dynamic processesfor
wealth creation.
y Awards wonbyReligare AssetManagement
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TOP MANAGEMENTTOP MANAGEMENT
y Mr. Sunil Godhwani
CEO & ManagingDirector, Religare
Enterprises Limited
y Mr. Shachindra Nath
Group ChiefOperatingOfficer, Religare
Enterprises Limited
y Mr. Anil SaxenaGroup Chief Finance Officer, Religare
Enterprises Limited
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ORGANIZATIONORGANIZATION CHARTCHART
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1.1. Equity Shares: An instrument for raising capital for theEquity Shares: An instrument for raising capital for the
companiescompanies
A shareholderis entitled to an equal distributionin anyprofits,ifany are decided inthe form ofdividends.
Shares are often used to refertothe stockofownership right.
Shares also represent ownership ofotherclasses offinancial
assets,such as mutualfunds.
Types ofshares
1. Ordinary/commonshares
2. Preference shares
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Investors: Buyers ofEquity ShareInvestors: Buyers ofEquity Share
InvestorsInvestors are those who have excessfunds with them and wanttoare those who have excessfunds with them and wantto
employitfor returnsinfuture. Individuals, AssociationofPersons,employitfor returnsinfuture. Individuals, AssociationofPersons,Companies,Mutualfunds, Financial Institutions Foreign InstitutionalCompanies,Mutualfunds, Financial Institutions Foreign Institutional
InvestorsInvestors..Major categories ofinvestors
y Institutional Investor: A non-bank person or organization thattradessecuritiesin large enough share quantitiesor dollar amountsthattheyqualifyfor preferentialtreatment and lowercommissions.
y Retail Investor: Individualinvestors whobuy and sellsecuritiesfortheirpersonal account, and notfor anothercompanyororganization. Alsoknown
as an "individualinvestor" or "smallinvestor".Retailinvestorsbuyin muchsmaller quantitiesthanlargerinstitutionalinvestors.
y Qualified InstitutionalBuyer QIB: Primarily referring toinstitutionsthatmanage atleast 10croresinsecuritiesincludingbanks,savings and loansinstitutions,insurance companies,investmentcompanies, employee benefit
plans,or an entityowned entirelyby qualified investors.
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BenefitsBenefits from Equity Sharesfrom Equity Shares
There are income tax advantages generally available tocorporations that invest inpreferred stocks.
One big advantage to its issuer is that it is an instrument toraise the capital of company.
This allows financial institutions to satisfy regulatoryrequirements without diluting common shareholders. Saidanother way, through preferred stock, financial institutionsare able toput on leverage while getting equity credit.
An "individual investor" or "small investor" gets benefitedby getting interest or dividends.
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Indian Equity IndustryIndian Equity Industryy The equityindustryin India is more than 19yearsold. The firstventure
capitalfund, TDICI Ltd. (now known as ICICI), was established in 1988
y In India today, manyfundsthat have beensetup inthe last9years are
focused oninformationtechnology (IT).
y In 2008,fundsbroadened theirinterestto a range ofsectorsincluding
manufacturing, health care,banking and financialservices,pharmaceuticals, engineering,textiles, and telecommunicationstechnology
y While manyinvestors have allocated more to equity as an alternative asset
class, equityisstillunderinvestedbecause not enough fund managers have
the experience and financialbacking needed to ensure sustainable
operations. As a result,the equity Investment rate in India isstill wellbelow the levelsinthe RepublicofKorea and Singapore
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State Bankof IndiaState Bankof India
y The evolution of State Bankof Indiacan be traced back
to the firstdecade ofthe 19th century. It began with the
establishment ofthe BankofCalcutta inCalcutta, on2
June 18
06y The corporate center of SBI is located in Mumbai.
y SBI has about10000+ branches
y India largest PSU bank
y Net profit9,121.24Cr in2008-09
y SBI provides easy access to money to its customers
through more than8500ATMs in India.
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Reliance GroupReliance Groupy The Reliance Group, founded by Dhirubhai H.Ambani (1932-
2002), is India's largest private sector enterprise, withbusinesses inthe energy andmaterials value chain
y Reliance Industries Limited,is a Fortune Global500company
and isthe largest private sectorcompanyin India.
y
The Companynow hasoperationsthatspanfrom theexploration and productionofoil and gastothe manufacture
ofpetroleum products, polyester products.
y The world's largest producer ofPolyester Fibre and Yarn
y 4th largest producer ofParaxylene (PX)andPurified
TerepthalicAcid (PTA)
y 6th largest producer of Mono Ethylene Glycol (MEG)
y 7th largest producer ofPolypropylene (PP)
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Larsen & Toubro Limited (L&T)Larsen & Toubro Limited (L&T)y Larsen & Toubro Limited (L&T) is a technology, engineering,
construction and manufacturing company. Itisone ofthelargest and most respected companiesin India's private sector.
y Larsen & Toubro Limited is a Forbes Asia Fabulous50
company.
y
Record ofachievementsy India'sfirstindigenous hydrocracker reactor
y Oil and gas platform projects executed to globalbenchmarks
y The world'slargestcontinuouscatalyst regeneration reactor
y
Asia's highestviaduct- builtforthe KonkanRailwayy The world'slongest productsplitter
y The world'slongest LPG pipeline
y Building aninternationalclassfootballstadium in 260 days
y India'sfirstindigenous HydrocrackerReactor 15
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Tata SteelTata Steel
y Tata Steel is amongthe top ten steel producers inthe worldy Tata Steel Limited is a Forbes Asia Fabulous50company.
y Tata Steel has a balancedglobal presence in over 50
developed Europeanand fastgrowingAsianmarkets, with
manufacturing units in26 countries.y Corus main operatingdivisions comprise Strip Products,
LongProducts andDistribution & Building Systems Division.
y The NatSteel group produces constructiongrade steel such
as rebars, cut-and-bend cages for construction, mesh, precage
bore pile, PC wires andPC strand.
y Tata Steel Thailand produces round bars anddeformed bars
for the construction industry
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Infosys TechnologiesInfosys Technologies
y Infosys Technologies Ltd. wasstarted in 1981 with US$ 250.
Today,itis globalleaderinthe "next generation" ofIT andconsulting with revenuesofover US$ 4 billion
y Infosys' offeringsspanbusiness and technologyconsulting,applicationservices,systemsintegration, product engineering,custom software development, maintenance, re-engineering,
independenttesting and validationservices, IT infrastructureservices and business processoutsourcing
y Infosys has a globalfootprint with over50offices anddevelopmentcentersin India,China, Australia,the CzechRepublic, Poland,the UK,Canada and Japan. Infosys and its
subsidiaries have 103,905 employees ason June 30, 2009.
y Infosys Technologies Ltd.is a Forbes Asia Fabulous50company
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y Satyam Computer Services (Mahindra Satyam) is a
leading globalbusiness and informationtechnologyservicescompanythatleverages deep industry and functional expertise,
leading technology practices, and an advanced, global delivery
modelto help clientstransform their highest-valuebusiness
processes and improve theirbusiness performance
y Service Offerings
y MechanicalEngineering Solutions
1. ProductEngineering
2. Manufacturing Engineering
y Hi-Tech solution
1. Embedded Design
2. Embedded Verification & Validation
y
Geographical InformationSystems 18
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AnalysisAnalysisy Fundamental Analysis
y Earnings pershare (EPS) ratio
y Price earnings ratio (P/E ratio)
y ReturnonShareholders Investmentor NetWorth Ratio
y TECHNICAL ANALYSISy Candlestick Chart
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Moving AverageMoving Average
Convergence/Divergence (MACD)Convergence/Divergence (MACD)
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Fundamental AnalysisFundamental Analysis
Company
Factors
SBI RIL L&T TATA
steel
Infosys
EPS (26-
mar-2007)
86.29 78.25 49.53 72.71 66.14
P/E 11.74 24.82 43.66 8.30 29.06
EPS (26-
mar-2008)
106.56 133.82 74.34 64.14 78.15
P/E 16.08 17.18 31.72 11.79 22. 84EPS (26-
mar-2009)
143.67 97.07 59.44 71.18 101.73
P/E 7.063 16.12 27.09 5.46 17.7521
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EPS GraphEPS Graph
0
20
0
60
80
100
120
1 0
160
SBI RIL L&T TATAsteel
Infosys
EPS (26-march-2007)
EPS (26-march-2008)
EPS (26-march-
2009)
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Fundamental AnalysisFundamental AnalysisCompany
Factors
SBI RIL L&T TATA
steel
Infosys
Dividend
Paid
March07
140% 110% 1100% 155% 270%
Dividend
Paid
March08
215% 130% 650% 160% 665%
Dividend
Paid
March09
290% 160% 850% 200% 470%
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Dividend GraphDividend Graph
0%
200%
400%
600%
800%
1000%
1200%
SBI RIL L&T T
AT
A steel Infosys
DividendPaid March07
DividendPaid March08
DividendPaid March09
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SBISBITECHNICAL ANALYSISTECHNICAL ANALYSIS
Prev resistancePrev resistance 18
4018
40Prev supportPrev support 15991599
Weekly highWeekly high 18221822
Weekly lowWeekly low 17211721
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SBISBI
y INVESTMENT BENEFITS
y High Growth rate inthe share price i.e. better return oninvestment
y Dividends paid is also high which create confidence amongtheinvestor
y RISKS
y Very volatile innaturey Conclusion:
y SBI is very good stock
y Fundamental is very good
y Volume inTrading is very good it show it is very active shares
y Very Stable Company
y Good for both longtermand shortterm investor
y Welcome to SMC Global.htm
y Welcome to SMC Global7divid.htm
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TECHNICAL ANALYSISTECHNICAL ANALYSISPrev resistancePrev resistance 21132113
Prev supportPrev support 19001900Weekly highWeekly high 21132113
Weekly lowWeekly low 19801980
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Reliance Industries LtdReliance Industries Ltdy INVESTMENT BENEFITS
y High Growth rate inthe share price i.e.betterreturnoninvestment
y Dividends paid is also high which createconfidence among the investor
y
KGband show the brightfuture ofthe companyy RISKS: Veryvolatile innature
y Conclusion:
y RELIANCEisvery good stock
y Fundamentalisvery good
y Volume in Trading isvery good itshow itisveryactive shares
y VeryStable company
y Good forboth long term and shortterm investor
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TECHNICAL ANALYSISTECHNICAL ANALYSISPrev resistancePrev resistance 16621662
Prev supportPrev support 14401440Weekly highWeekly high 16601660
Weekly lowWeekly low 15371537
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Larsen & Toubro LimitedLarsen & Toubro Limitedy INVESTMENT BENEFITS
y High Growth rate inthe share price i.e.better returnon
investmenty Dividends paid is also high which create confidence among the
investor
y GoodFuture Project
1 L&TbagsRS. 6510 millionsordersfor projectsin HydrocarbonSector
2 L&TbagsRS. 6510 millionsElectrical Project Orders
y RISKS
y Veryvolatile innature
y Conclusion:
y L&T isvery good stock
y Growth of23%overthe previousyear
y Fundamentalisvery good
y Volume in Trading isvery good itshow itisvery active shares
y VeryStable Company
y Good forboth long term and shortterm investor
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TECHNICAL ANALYSISTECHNICAL ANALYSIS
Prev resistancePrev resistance 443443
Prev supportPrev support 380380
Weekly highWeekly high 443443Weekly lowWeekly low 381381
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Tata Steel LimitedTata Steel Limitedy INSTMENT BENEFITS
y High Growth rate inthe share price i.e.better returnoninvestment
y Good Future Project
y India:The Company has embarked uponsetting up three greenfield steel plantsineastern India:
y 12 MTPA* plantin Jharkhand
y 6 MTPA plantin Orissa
y 5MTPA plantinChhattisgarh
y
JamshedpurSteelWorks willbecome a 10MTPA unitby 2010.*MTPA = milliontons per annum
y Overseas:
y Vietnam
y RISKS
y Veryvolatile innature
y
Conclusion:y TATA STEEL isvery good stock
y Revenues grewby 12.0%
y Fundamentalisvery good
y Volume in Trading isvery good itshow itisvery active shares
y VeryStable Company
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TECHNICAL ANALYSISTECHNICAL ANALYSISPrev resistancePrev resistance 18601860
Prev supportPrev support 17011701
Weekly highWeekly high 18601860Weekly lowWeekly low 17481748
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Infosys Technologies Ltd.Infosys Technologies Ltd.y INVESTMENTBENEFITS
y High Growth rate inthe share price i.e.better returnon
investmenty Dividends paid is also high which create confidence
among the investor
y Telstra Selects Infosys as a Key Partner
y 27 clients were added during the quarterby Infosys and its
subsidiariesy RISKS
y Veryvolatile innature
y Conclusion:
y Infosysisvery good stock
y Revenues grewby 12.7%y Fundamentalisvery good
y Volume in Trading isvery good itshow itisvery activeshares
y VeryStable Company
y Good forboth long term and shortterm investor 34
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y TECHNICAL ANALYSISPrev resistance 89Prev support 70
Weekly high89
Weekly low 70
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Satyam.Satyam.y INVESTMENT BENEFITS
y High Growth rate inthe share price i.e.betterreturnoninvestment (150%)
y RISKS
y Veryvolatile innature
y Facing management problem
y Conclusion:y Satyam isvery riskystock
y Net profit 4 Crin Q1
y Volume in Trading isvery good itshow itis
very active sharesy VeryStable Company due toMahindra group
y Good forboth long term and shortterm investor
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0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
140.00%
160.00%
SBI Reliance Infosys tata steel L&T satyam
Growth of share
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Effect of Economic growth onEffect of Economic growth on
Share MarketShare Markety Three mostsignificanttostockmarketinvestors
are inflation, gross domestic product (GDP), and
labor market data.
y
INFLATIONy GROSS DOMESTIC PRODUCT
y THE LABOR MARKET
38
E i G thE i G th
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Economic GrowthEconomic Growth
Year GDP
Annual avg.
Inflation
share market
NSE
2000-01 4.40% 3.74% 1336.49
2001-02 5.80% 4.28% 1077.13
2002-03 3.80% 4.10% 1036.10
2003-04 8.50% 3.73% 1428.13
2004-05 7.50% 4.00% 1808.75
2005-06 9.40% 4.23% 2513.40
2006-07 9.60% 6.33% 3572.44
2007-08 8.70% 5.44% 4735.14
2008-09 6.50% 2.31% 4349.1
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GDP & Inflation GraphGDP & Inflation Graph
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
GDP
40
FindingFinding
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NSE GraphNSE Graph
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
share market NSEsharemarketNSE
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MARKETING STRATEGIES OF RELIGAREMARKETING STRATEGIES OF RELIGARE
y RELIGARE follow Rapid penetration strategy
y Minimum broker charges as compare to other
company
y Provide all market in a single platform
y
One ofthe best-in-class dealing roomsy Pan India footprint
y Near to your home/office Religare is present in all
over India
y 1800locations across more than 460towns & cities.
y More advertisement on business based websites
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ComparisonsComparisons
Company Name Broker charges Margin condition
ICICI Direct 0.15/0.75In/De 7/3- 4timesInt/Delv
Share Khan 0.05/0.30In/De 7/3- 4timesInt/Delv
India Bulls 0.10/0.5
0In/D
e7
/4timesInt/D
elvKotak 0.05/0.45In/De 7/3timesInt/Delv
Reliance Money 0.02/0.75In/De 7/3timesInt/Delv
SMC 0.15/0.50In/De 7/3timesInt/Delv
India info line 0.05/0.30In/De 7/3- 4timesInt/Delv
Religare 0.02/0.20In/De 20/6-8timesInt/Delv
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Some Suggestions to further enhancing theservices
y Allothertrading company provide the onlinedemoontheirsitesbutitisnot available onReligare site
y Religare mainfocusonlyintrading byRM.it
have tofocusonboth because the internetpopulationin India grew at 33 percent andpeople prefersto doonline trading
y Provide Pdf form onReligare site.y
IPO newsflash onthe sitey Selected news Flash onthe sites which effecton
share assuggested byyour research group
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