...SECURITY ANALYSIS AND POR TFOLIO MANAGEMENT LESSON 16: STOCK MARKET INDICES Stock market indices are the barometers of the stock market. They mirror the stock market behavior.With some 7,000 companies listed on the Bombay stock exchange, it is not possible to look at the prices of every stock to find out whether the market movement is upward or downward. The indices give a broad outline of the market movement and represent the market. Some of the stock market indices are BSE Sensex, BSE200, Dollex, NSE-50, CRISIL-500, Business Line 250 and RBI Indices of Ordinary Shares. Market Capitalisation (MC) = Number of shares × Prices of shares X = 100 × Rs. 20 = Rs. 2,000 Y = 200 × Rs. 30 = Rs. 6,000 Z = 250 × Rs. 40 = Rs. 10,000 Aggregate Market Capitalisation = Rs. 18,000. Index at period N = 100 Market Price at N + 1 X Share price = Rs. 25 Y Share price = Rs. 40 Z Share price = Rs. 50 Market capitalisation X = 100 × Rs. 25 = Rs. 2,500 Y = 200 × Rs. 40 = Rs. 8,000 Z = 250 × Rs. 50 = Rs. 12,500 Aggregate Market Capitaliation = Rs. 23,000 Index at period N + 1 = Rs. 23,000 × 100/18,000 N + 1 = 127.78 The weight may be the trading volumeof the particular scrip.When the index uses the trading volume as weight, on its shows the depth of the market in terms of trading volumes and conditions. All India Equity index of Financial Express with base year 1979 uses the trading volume of the scrip as weight. The Business Line - (BL) - 250 (Base January 17 1994 = 100) a comprehensive index comprising...
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...of brokers constantly increased. The group eventually moved to Dalal Street in 1874 and in 1875 became an official organization known as 'The Native Share & Stock Brokers Association'. In 1956, the BSE became the first stock exchange to be recognized by the Indian Government under the Securities Contracts Regulation Act. The Bombay Stock Exchange developed the BSE SENSEX in 1986, giving the BSE a means to measure overall performance of the exchange. In 2000 the BSE used this index to open its derivatives market, trading SENSEX futures contracts. The development of SENSEX options along with equity derivatives followed in 2001 and 2002, expanding the BSE's trading platform. The equity market capitalization of the companies listed on the BSE was US$1 trillion as of December 2011, making it the 6th largest stock exchange in Asia and the 14th largest in the world.[1] The BSE has the largest number of listed companies in the world. As of December 2011, there are over 5,112 listed Indian companies and over 8,196 scrips on the stock exchange,[3] the Bombay Stock Exchange has a significant trading volume. The BSE SENSEX, also called "BSE 30", is a widely used market index in India and Asia. Though many other exchanges exist, BSE and the National Stock Exchange of India account for the majority of the equity trading in India. While both have similar total market capitalization (about USD 1.6 trillion), share volume in NSE is typically two times that of BSE. ii. Shanghai Stock...
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...|IPM Project Report | | | | | |Investment Portfolio Creation | |using | | | |Investment Philosophy – of Joel Greenblatt’s | |[pic] | | | | | | ...
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...64 Management Insight INDIAN FUTURES MARKET : AN ANALYSIS Agha Nuruzzaman* ABSTRACT The Indian government’s efforts are directed towards the establishment of a free, fair, transparent and fully informed market with help of the Futures market, so that futures prices are truly determined by the forces of demand and supply. In the long term, the continuing rapid growth of economy in India creates a huge potential for Futures market. This study is an effort to understand the factors under PEST Analysis. For this purpose, data from different sources were collected and later analyzed by using statistical techniques. With an improving agriculture, widening scope of education, a balanced economy, friendlier infrastructure, vividly sketched out laws unstained by any kind of corruption will create the right climate for swift growth of the futures market. The PEST analysis shows that most of the factors considered are indeed going in favour of India’s futures market. INTRODUCTION A futures contract is a legally binding agreement to buy or sell a commodity or financial instrument sometime in the future at a price agreed upon at the time of the trade. While actual physical delivery of the underlying assets seldom takes place, futures contracts are nonetheless standardized according to delivery specifications, including the quality, quantity, and time and location. The only variable is price, which is discovered through the trading process. In this study we ...
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...Lock in your investments at current yield Must have Mirae Asset Fixed Maturity Plan - Series - II (Close Ended Income Scheme - 391 days) Fund Speak March 2014 Mirae Asset India Opportunities Fund (An open ended equity oriented scheme) This product is suitable for investors who are seeking* l long-term capital appreciation l Investments in equities, equity related securities l High Risk (BROWN) (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk *Investors should consult their financial advisers if they are not clear about the suitability of the product. Factsheet data as on 28th February, 2014 Style Box * Style Large Mid Small Blend Value Marketcap Growth Portfolio Top 10 Holdings Equity Shares Infosys Ltd ICICI Bank Ltd HDFC Bank Ltd ITC Ltd Housing Development Finance Corporation Ltd Tata Consultancy Services Ltd Reliance Industries Ltd Divis Laboratories Ltd Bharti Airtel Ltd Larsen & Toubro Ltd Other Equities Equity Holding Total Cash & Other Receivables Total Dividend History - Regular Plan Record Date 27-Jan-14 14-Mar-13 22-Mar-12 10-Dec-10 09-Sep-09 % allocation 8.23% 6.39% 5.03% 4.94% 4.19% 3.75% 3.51% 3.23% 2.88% 2.77% 51.36% 96.29% 3.71% 100.00% Key Information Fund Managers & Experience : Neelesh Surana: 17 years of experience in Financial Services including Fund Management...
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...1 | Journal of Management and Science Vol.2, No.1 ISSN:2249-1260/EISSN:2250-1819 ACCEPTANCE OF E-BANKING AMONG CUSTOMERS (An Empirical Investigation in India) K.T. Geetha1 & V.Malarvizhi2 Professor and Assistant Professor, Department of Economics, Avinashilingam Institute for home Science and Higher Education for Women Coimbatore -641043, TamilNadu, India 1 2 Abstract Financial liberalization and technology revolution have allowed the developments of new and more efficient delivery and processing channels as well as more innovative products and services in banking industry. Banking institutions are facing competition not only from each other but also from non-bank financial intermediaries as well as from alternative sources of financing. Another strategic challenge facing banking institutions today is the growing and changing needs and expectations of consumers in tandem with increased education levels and growing wealth. Consumers are becoming increasingly discerning and have become more involved in their financial decisions. This paper investigates the factors which are affecting the acceptance of ebanking services among the customers and also indicates level of concern regarding security and privacy issues in Indian context. Primary data was collected from 200 respondents through a structured questionnaire. Descriptive statistics was used to explain demographic profile of respondents and Factor and Regression analyses were used to know the factors affecting e-banking...
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...A Financial Analysis on Indian Chemical Industry [pic] Submitted To: Prof. Jadhav Aditya Mohan Submitted By: |Name |Seat # |Enrollment # | |Soumya Chaturvedi |5 |11BSPHH010831 | | | | | | | | | | | | | | | | | CONTENTS ➢ Acknowledgement……………………………….. ➢ Objective…………………………………………1 ➢ Covariance………………………………………. ➢ Correlation………………………………………. ➢ Beta and its role…………………………………. ➢ Beta coefficient………………………………….. ➢ Capital asset pricing model (capm)……………... ➢ Cost of equity……………………………………. ➢ Weighted average cost of capital (wacc)………... ➢ Bibliography……………………………………... ACKNOWLEDGEMENT I would like to express my gratitude to our finance professor MR. JADHAV ADITYA MOHAN who gave us the opportunity and subsequent guidance to complete this project. A mission of this project was to get practical insight of the chemical and fertiliser industry. This project helped us in learning of financial concepts by applying them and ascertaining the various financial details of the...
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...MARKET INDICES IN INDIA INTRODUCTION A stock market index is created by selecting a group of stocks that are capable of representing the whole market or a specified sector or segment of the market. The change in the price s of this basket of securities is measured with reference to a base period. There is usually provision for giving proper weights to different stocks on the basis of their importance to the economy. A stock market index acts as the indicator of the performance of the overall economy or a sector of the economy. An Index is used to give information about the price movements of products in the financial, commodities or any other markets. Financial indexes are constructed to measure price movements of stocks, bonds, T-bills and other forms of investments. Stock market indexes are meant to capture the overall behaviour of equity markets. Stock market indexes are useful for a variety of reasons. Some of them are: • They provide a historical comparison of returns on money invested in the stock market against other forms of investments such as gold or debt. • They can be used as a standard against which to compare the performance of an equity fund. • It is a lead indicator of the performance of the overall economy or a sector of the economy • Stock indexes reflect highly up to date information • Modern financial applications such as Index Funds, Index Futures, Index Options play an important role in financial investments and risk management Further...
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...Currency exchange rate and different exchange rate regimes .................................................................... 8 Fiscal and Monetary Policy ........................................................................................................................... 8 Microeconomics............................................................................................................................................ 9 Types of Industry........................................................................................................................................... 9 Money market and Capital market ............................................................................................................. 10 SENSEX Calculation ..................................................................................................................................... 10 Regional and national stock exchanges - how do you trade on exchange?...
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...BASIC PRINCIPLES OF TRADING AND HEDGING AND INFORMATION ON INDEX FUTURES ( WITH REFERENCE TO THE BSE MODEL) Group members : Nishma Mehta- 68 Navti Narang- 72 Jaikrishna Patel- 80 Miloni Shah- 100 Nidhi Shah- 102 Karishma Kotian- 120 TRADING Trading Rules The Derivatives Trading at BSE takes place through a fully automated screen-based trading platform called DTSS (Derivatives Trading and Settlement System).The DTSS is designed to allow trading on a real-time basis. In addition to generating trades by matching opposite orders, the DTSS also generates various reports for the member participants. Order Matching Rules Order Matching takes place after order acceptance wherein the system searches for an opposite matching order. If a match is found, a trade is generated. The order against which the trade has been generated is removed from the system. In case the order is not exhausted further matching orders are searched for and trades generated till the order gets exhausted or no more match-able orders are found. If the order is not entirely exhausted, the system retains the order in the pending order book. Matching of the orders is in the priority of price and timestamp. A unique trade-id is generated for each trade and the entire information of the trade is sent to the relevant Members. Order Conditions The derivatives market is order driven i.e. the traders can place only orders in the system. Following are the order types allowed for the derivative products...
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...➢ To compare the performance of 5 open ended equity mutual fund schemes with various financial parameters like Treynor, Jenson and Sharpe Model. ➢ To assess the above-mentioned schemes in-depth and suggest the investors for the same. ➢ To assign ranks to the selected mutual fund schemes and suggest suitable scheme to the investors on the basis of risk and return. 2. Scope of the Study:- ➢ In this study we have selected last 5 years data for 5 equity oriented mutual fund schemes and their performance results. ➢ Due to time constrain, we took only five equity schemes and suggest the desired portfolio for the investors only on the base of above schemes only. ➢ We have taken BSE 100 as the benchmark index for calculation of market return though different funds have compared themselves on different indices. This is to make our study more valid and it is easy to compare performance on one benchmark return basis. ➢ We have considered the rate of interest of National Savings Certificates as the Risk free rate of return. 3. Criteria & Tools for Evaluation:- This study only includes five open ended equity funds during the last 5 years. Moreover the result of the study is only based on following measures. ➢ Treynor Measure ➢ Sharpe Measure ➢ Jenson Model 1.4 Research design:- It is a descriptive research. 1.5 Sources of Data:- Secondary Data: Methods of Data Collection:- ➢ For the study, the basic data like Net...
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...Introduction State Bank of India From Wikipedia, the free encyclopedia Jump to: navigation, search State Bank of India | | Type | Public | Traded as | NSE: SBIN BSE: 500112 LSE: SBID BSE SENSEX Constituent CNX Nifty Constituent | Industry | Banking, Financial Services | Founded | 2 June 1806 | Headquarters | Mumbai, Maharashtra, India | Area served | Worldwide | Key people | Arundhati Bhattacharya (Chairman) | Products | consumer banking, corporate banking, finance and insurance, investment banking, mortgage loans, private banking, private equity, savings, Securities, asset management, wealth management, Credit cards, | Revenue | 200560 crore (US$32 billion) (2012)[1][2] | Profit | 17916 crore (US$2.9 billion) (2013)[1][2] | Total assets | 1566261 crore (US$250 billion) (2012)[1][2] | Total equity | 98884 crore (US$16 billion) (2012)[1][2] | Owners | Government of India | Employees | 295,696 (2012)[2] | Website | www.sbi.co.in | State Bank of India (SBI) is an Indian multinational banking and financial services company. It is a government-owned corporation with its headquarters in Mumbai, Maharashtra. As of December 2013, it had assets of US$388 billion and 17,000 branches, including 190 foreign offices, making it the largest banking and financial services company in India by assets.[3][4] State Bank of India is one of the Big Four banks of India, along with ICICI Bank, Punjab National Bank and HDFC Bank. The bank traces its ancestry...
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...INTRODUCTION The emergence of the market for derivative products, most notably forwards, futures and options, can be traced back to the willingness of risk-averse economic agents to guard themselves against uncertainties arising out of fluctuations in asset prices. By their very nature, the financial markets are marked by a very high degree of volatility. Through the use of derivative products, it is possible to partially or fully transfer price risks by locking-in asset prices. As instruments of risk management, these generally do not influence the fluctuations in the underlying asset prices. However, by locking in asset prices, derivative products minimize the impact of fluctuations in asset prices on the profitability and cash flow situation of riskaverse investors. The main function of derivatives is that they allow users to meet the demand for costeffective protection against risks associated with movements in the prices of the underlying. In other words, users of derivatives can hedge against fluctuations in exchange and interest rates, equity and commodity prices, as well as credit worthiness. Specifically, derivative transactions involve transferring those risks from entities less willing or able to manage them to those more willing or able to do so. Derivatives transactions are now common among a wide range of entities, including commercial banks, investment banks, central banks, fund mangers, insurance companies and other non-financial corporations. Participants...
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...------------------------------------------------- Top of Form | | New Member FAQ | Forums | Earn Revenue | Posting Guidelines | Help Topics | Admissions | | | Awards & Gifts | | | | Login Register | Resources | Practice Tests | Ask Experts | Question Papers | Jobs | Universities | Colleges | Courses | Schools | Training | | Gift Shop | Bookmarks | Reviews | Learn English | Social Hub | Links | New Posts | My India | Members | Polls | | | Active Members Today * R Pramod (199) * Ajay (121) * Abhinav (75)Last 7 Days * R Pramod (1735) * Sukhdev Singh (962) * Pramod (598)more... | Impact of Foreign Institutional Investors on Indian Stock Market Posted Date: Total Responses: 0 Posted By: hardeep Member Level: Silver Points/Cash: 10 | | CHAPTER I INTRODUCTION 1.1 INTRODUCTION 1.1.1 FOREIGN INSTITUTIONAL INVESTORS FII is defined as an institution organized outside of India for the purpose of making investments into the Indian securities market under the regulations prescribed by SEBI. ‘FII’ include “Overseas pension funds, mutual funds, investment trust, asset management company, nominee company, bank, institutional portfolio manager, university funds, endowments, foundations, charitable trusts, charitable societies, a trustee or power of attorney holder incorporated or established outside India proposing to make proprietary investments or...
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...PROJECT REPORT ON “SECURITY ANALYSIS AND PORTFOLI MANAGEMENT” CONDUCTED AT “Indiabulls Financial Service Limited” A dissertation submitted to the OSMANIA UNIVERSITY, Hyderabad in the partial Fulfillment for the award of the degree of “MASTER OF BUSINESS ADMINISTRATION” BY D.GANGADEVI (1313-10-672-042) UNDER THE GUIDANCE OF Mr.Manohar( Prof. ) MATRUSRI INSTITUTE OF PG STUDIES ( AFFILIATED TO OSMANIA UNIVERSITY,HYD) SAIDABAD, HYDERABAD 500079. 2010-2012. ACKNOWLEDGEMENT With profound esteem and affection, I recall the favours I have gained from my teachers, parents and all who co-operated with me in the course of the completion of this dissertation. I wish to express my deep sense of gratitude to Mr.VINOD KUMAR BRANCH MANAGER of Indiabulls Financial Limited for the opportunity to go through with my dissertation in his organization and to Mr.K.RAMESH CHENDRA, who has guided me in the organization with lots of advises, corrections and personal care. Lastly, I owe my special thanks to all my faculty members, friends and laity who co-operated with me in completion of this dissertation. ...
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