...1. Explain the following concepts with necessary examples and outline their importance for an economy: nominal exchange rate, real exchange rate, nominal effective exchange rate, real effective exchange rate EXCHANGE RATE : An exchange rate is the current market price for which one currency can be exchanged for another. NOMINAL EXCHANGE RATE: It is defined as the actual foreign exchange quotation in contrast to the real exchange rate, which has been adjusted for changes in purchasing power. MATHEMATICAL FORMULATION : The nominal exchange rate e is the price in domestic currency of one unit of a foreign currency. e.Pi=Pi* Here: • e denotes the nominal exchange rate of the domestic currency in terms of the foreign currency • pi denotes the price of good i in domestic in domestic currency • e.pi is the price of the same good in domestic in foreign currency • *pi denotes the price of the same good in the foreign in foreign currency REAL EXCHANGE RATE: Basically, the real exchange rate can be defined as the nominal exchange rate that takes the inflation differentials among the countries into account. Its importance stems from the fact that it can be used as an indicator of competitiveness in the foreign trade of a country. The Real Exchange Rate Definitions The various definitions of the real exchange rate can mainly be categorized under two main groups. The first group of definitions is made in line with the purchasing power parity. The second...
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...A Study of Monetary Policy Impact on Stock Market Returns (With Special Reference to Nifty and Bank Nifty) A PROJECT REPORT Submitted by Chintan Divetia (1011416026) Submitted to Mr. Raviraj Gohil Assistant Professor Department of Finance In partial fulfilment for the award of the degree of POST GRADUATION DIPLOMA IN MANAGEMENT in Finance Shanti Business School, Shela, Ahmedabad. ACKNOWLEDGEMENT It was a great opportunity for me to work with Sharekhan Ltd., pioneers in the field of Stock Market. I am extremely grateful to all those who have shared their expertise and knowledge with me and without whom the completion of this project would have been virtually impossible. Firstly, I would like to thank my Company Mentor Mrs. Raina Vashi who has been a constant source of inspiration for me during the completion of this project. I would also like to thank Mr. Henal Bardoliwala, Relationship Manager of Sharekhan Ltd., for supporting me to complete my project. I am thankful to all staff of Sharekhan Ltd for their valuable support and cooperation during the entire tenure of this project. I thank my faculty guide Mr. Raviraj Gohil who helped me out at every critical situation that i faced in my project and gave us his valuable advice to solve problems. EXECUTIVE SUMMARY I feel great pleasure by presenting this project. As a student of PGDM of ‘Shanti Business School Ahmedabad’, there is a subject of partial training followed...
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...Clothing Ltd (KKCL), was incorporated in 1980 as a partnership firm,converted into a private limited in the year 2000. The business line consists of designing, manufacturing and marketing of apparels under its four brands i.e. Killer, Lawman Pg3, Integriti and Easies. Kewal kiran Clothing Limited (KKCL) today is amongst the few large branded apparel manufacturers in India. The company has sales in Asia, Middle East and CIS. The company designs, manufactures and markets branded jeans, semi-formal and casual wear for men and women. KKCL has positioned its brands differently; depending on the segment targeted. Its brands range from the high fashion premium segment such as Killer for denim wear and Easies for casual wear to the middle and economy segments through brands such as Lawman and Integriti. The company’s main target audience includes the youth of India falling in the middle to upper middle class segment. Strong player in the competitive branded readymade garment industry Kewal Kiran Clothing Limited (KKCL) is a strong player in the branded RMG market with brands such as ‘Killer’, ‘Lawman Pg3’ and ‘Integriti’. ‘Killer’, a 20-year-old brand, enjoys a premium position in the branded casual men’s wear segment and is one of the strongest domestic brands in the denim segment. ‘Lawman Pg3’ which is positioned as an affordable fashion brand has done quiet well while ‘Integriti’ a mass brand targeting price conscious segment has also shown tremendous growth appetite. Increasing...
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...PRIVATE LIMITED INTRODUCTION: DLF Limited (Delhi Land & Finance) is the largest commercial real estate developer in India. It was founded by Raghuvendra Singh in 1946 and is based in New Delhi, India. The company operates through three reportable segments, namely, residential, commercial, and retail. It is associated with the development of residential, commercial and retail properties. The company caters to three segments of the residential market - Super Luxury, Luxury and Mid-Income. The Annuity business of the company comprises mainly of rental businesses of offices and retail. The company is headed by Indian billionaire Kushal Pal Singh. Kushal Pal Singh, according to the Forbes listing of richest billionaires in 2009, was the 98th richest man in the world and the world's richest property developer. The company's US$ 2 billion IPO in July, 2007 was India's biggest IPO in history. In its first quarter results for the period ending 30 June 2007, the company reported a turnover of Rs. 3,120.98 Crore and profits after taxes of Rs. 1,515.48 Crore. VISION MISSION AND VALUES DLF Vision To contribute significantly to building the new India and become the world’s most valuable real estate company. DLF Mission To build world-class real-estate concepts across six business lines with the highest standards of professionalism, ethics, quality and customer service. DLF Values Sustained efforts to enhance customer value and quality. Ethical and professional service. Compliance...
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...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 the different indices in the Indian makerts mainly in NSE and BSE are discussed. NATIONAL STOCK EXCHANGE THE BEGINNING In the fast growing Indian financial market, there are 23 stock exchanges trading securities. The National Stock Exchange of India (NSE) situated in Mumbai...
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...venture but venture finance is the life blood for entrepreneurship. Innovation is the fuel for igniting the Entrepreneurial engine, Venture capital revs up the engine fast till it attains sustainable speed to change the gears from idea to entity, eventually reaching IPO stage. The paper starts with Research and Development Cess Act, 1986 and covers the development in the field till 2003 and presents an analysis of venture investments as well as future prospects . The history of Venture capital (VC), its advent in India, Characteristics of VC, Government guidelines on VC, Classification of VC in India, Types of V and their analysis has been dealt in the C paper. . Introduction Since Independence till early1990s, the Government has been playing the role of an entrepreneur as well. This was on account of the policy direction which propounded socialistic society and mixed economy. There was dearth of capital, infrastructure facilities and entrepreneurship in the country. During this period, the Government developed infrastructural base such as roads, railways, electricity, ports, banks, financial institutions, insurance etc through the public sector enterprises which were supposed to attain commanding heights of the economy. The environment thus created resulted in the people of India becoming job seekers and the Government itself became a dominant entrepreneur and job provider. Industrialists in general became license seekers rather than wealth creators. Goods and services of poor quality...
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...venture but venture finance is the life blood for entrepreneurship. Innovation is the fuel for igniting the Entrepreneurial engine, Venture capital revs up the engine fast till it attains sustainable speed to change the gears from idea to entity, eventually reaching IPO stage. The paper starts with Research and Development Cess Act, 1986 and covers the development in the field till 2003 and presents an analysis of venture investments as well as future prospects . The history of Venture capital (VC), its advent in India, Characteristics of VC, Government guidelines on VC, Classification of VC in India, Types of V and their analysis has been dealt in the C paper. . Introduction Since Independence till early1990s, the Government has been playing the role of an entrepreneur as well. This was on account of the policy direction which propounded socialistic society and mixed economy. There was dearth of capital, infrastructure facilities and entrepreneurship in the country. During this period, the Government developed infrastructural base such as roads, railways, electricity, ports, banks, financial institutions, insurance etc through the public sector enterprises which were supposed to attain commanding heights of the economy. The environment thus created resulted in the people of India becoming job seekers and the Government itself became a dominant entrepreneur and job provider. Industrialists in general became license seekers rather than wealth creators. Goods and services of poor quality...
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...2012 SHIKHA SINHA INDIABULLS SECURITIES IBS HYDERABAD 5/26/2012 FACTORS AFFECTING INVESTMENT DECISIONS AND COMPETITIVE ADVANTAGES OF INDIABULLS A REPORT ON FACTORS AFFECTING INVESTMENT DECISIONS AND COMPETITIVE ANALYSIS OF INDIABULLS SUBMITTED BY: SHIKHA SINHA 11BSPHH010767 A report submitted in the partial fulfillment of MBA Program of IBS Hyderabad Submitted to: FACULTY GUIDE COMPANY GUIDE DR. P SHASHIKALA MR. ATISH GUPTA IBS HYDERABAD V.P., INDIABULLS Date of submission: AUTHORIZATION I, Dr. P Shashikala, hereby authorize the submission of the project work titled, “ Factors affecting investment decision and competitive advantage of Indiabulls”, undertaken by Ms. Shikha Sinha (Enrollment no. 11BSPHH010767) as partial fulfillment of MBA Program of IBS Hyderabad. This project work was executed under my guidance and no part of this project has been submitted for any degree or recognition before. Sincerely, Dr. P Shashikala (Faculty Guide, IBS Hyderabad) Dated: ACKNOWLEDGEMENT I hereby take this opportunity to thank INDIABULLS SECURITIES, for providing me a corporate exposure through the course of my summer internship. I would like to express my sincere gratitude towards my company guide Mr. Atish Gupta, for providing me great insights about stock markets, real estate, home loans and various other...
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...INDIAN AUTO COMPONENT INDUSTRY AN OVERVIEW 1 Contents 1 2 3 4 5 6 About ACMA Indian Economy Automotive Industry Auto Component Industry of India Vision 2020 Capabilities & Challenges of Component Suppliers The Way Forward 7 2 Introduction Automotive Component Manufacturers Association of India Role An apex agency of the Indian Automotive Industry auto component output in the organized sector 600+ companies forming majority of the Members Quality System ACMA operates on Quality System based on ISO 9001:2000 As Automotive Component Manufacturers Association of India in the year 1982 Re-Christened Inception In the year 1959 as The All India Automobile & Ancillary Industries Association (AIA & AIA) 3 ACMA and Its Services Promotes Indian Automotive Component Industry Trade Promotion Technology Up-gradation Quality Enhancement Collection & Dissemination of Information Vital Catalyst for Industrial Development 4 International Business Development Promote India Promote India as a Brand as a Brand Organize Business Organize Business Development Delegation Development Delegation Overseas Overseas Undertake Export Undertake Export Promotional Promotional Projects Projects Organize Participation Organize Participation in Overseas in Overseas Automobile Automobile Exhibitions & Fairs Exhibitions & Fairs Global Interaction Global Interaction through through Counterpart Association Counterpart Association ...
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...employee. This phenomenon occurs to the whole country, causing the wage differential between India and the United States to be quite significant. [pic] [pic] The solution for Infosys’ performance improvement is to move up the “value chain” of software development in order to remain competitive on a global basis. Refer to Exhibit 6, the company plans to move up from software development to project management with higher margin. To implement this strategy successfully, Infosys had to accomplish the following objectives. a) Increase customer penetration b) Increase brand equity c) Increase the amount of fixed price contracts 2. Globalization As a result of different productivity from Indian and American employees, growth of Infosys is not as favorable as of U.S. companies. Infosys is one of those aiming to be more global and is facing constraint causing by productivity of its employees. 3. Hiring and retaining employees Infosys is planning to grow in rapid pace which demands more responsibility from existing employees. The company is facing a challenge to maintain the spirit of its employees while being able to offer and implant the same spirit to the new employees in an increasing base of employees. 4. Risk of incapability to deliver services in highest demand Although Infosys has proven to be a master at managing offshore opportunities due to its highly trained English-speaking technical...
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...January 2014 CRISIL Economy First Cut IIP: Industrial production slips again Overview: Index of industrial production (IIP) fell by 2.1 per cent in November on a year-on-year basis, even sharper than October’s decline of 1.6 per cent. Despite a pick-up in core infrastructure industries such as mining and electricity, industrial production fell in November as the manufacturing sector contracted by 3.5 per cent compared to a year ago. Industrial growth is likely to remain weak for the rest of 2013-14 due to infrastructure and input constraints, and weak domestic demand. Robust export growth with rising global demand may however, provide some cushion to manufacturing production. Even though the mining ban has been lifted in Karnataka, revival in mining output will be slow as it will take time for firms to obtain relevant clearances and ramp up production. The Cabinet Committee on Investments has also been fast-tracking stalled projects; however, as most of these are infrastructure projects and have long gestation periods, the impact of these measures will not be felt until 2014-15. Core sectors such as mining and electricity rebounded in November from last month’s lows as higher coal production lifted mining output and raised power production. Electricity output grew by 6.3 per cent while mining expanded by 1.0 per cent in November. Mining sector has now contracted for three consecutive years (-2.2 per cent for April-November 2013) while manufacturing growth has completely collapsed...
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...reasonable, credible opportunity to become one of the top two or three dominant players in a global space which is very niche but nevertheless very global. - K.P. Ho, CEO of Banyan Tree Holdings Limited1 On 14 August 2006, exactly two months after its initial public offering (“IPO”), Banyan Tree Holdings Limited announced second-quarter results for the period ending on 30 June. Revenue had more than doubled to S$71.42 million, largely due to recovery following the 2004 Indian Ocean tsunami. The company felt that this was only the beginning, however, and had earmarked part of the IPO proceeds to finance an ambitious expansion plan. At the core of its business development plan was a proposal to open 21 new resorts3 over four years that would span non-Asian territories from Greece to Mexico. Banyan Tree CEO Ho Kwon Ping’s vision was to “string a necklace [of Banyan Tree properties] around the world”. The Asian Financial Crisis of 1997, the SARS crisis of 2003 and the Indian Ocean tsunami of 2004 had taken their toll on the travel and tourism industry [see Exhibit 1]. Although recovery was on the horizon, Ho understood the need to diversify risks across geographical regions and the IPO provided the finances to venture out of familiar territory. Two challenges lay ahead for Ho as he considered how the company should manage growth without distracting from the qualities customers associated with the Banyan Tree brand. First was the issue of adequate manpower and infrastructure...
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...http://www.investopedia.com/categories/banking.asp#axzz1mS9JXfsX 1. What is a Repo Rate? A: Repo rate is the rate at which our banks borrow rupees from RBI. Whenever the banks have any shortage of funds they can borrow it from RBI. A reduction in the repo rate will help banks to get money at a cheaper rate. When the repo rate increases, borrowing from RBI becomes more expensive. 2. What is Reverse Repo Rate? A: This is exact opposite of Repo rate. Reverse Repo rate is the rate at which Reserve Bank of India (RBI) borrows money from banks. RBI uses this tool when it feels there is too much money floating in the banking system. Banks are always happy to lend money to RBI since their money is in safe hands with a good interest. An increase in Reverse repo rate can cause the banks to transfer more funds to RBI due to this attractive interest rates. 3. What is CRR Rate? A: Cash reserve Ratio (CRR) is the amount of funds that the banks have to keep with RBI. If RBI decides to increase the percent of this, the available amount with the banks comes down. RBI is using this method (increase of CRR rate), to drain out the excessive money from the banks.3 4. What is SLR Rate? A: SLR (Statutory Liquidity Ratio) is the amount a commercial bank needs to maintain in the form of cash, or gold or govt. approved securities (Bonds) before providing credit to its customers. SLR rate is determined and maintained by the RBI (Reserve Bank of India) in order to control the expansion of bank...
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...wanted HR to ensure that Infosys was on the Top Ten lists of both Best Performing companies and Best Employers. It sounded innocuous enough to an outsider, but this HR team knew better. To the best of its knowledge, no large organization had ever been able to achieve this distinction because of the tension inherent between the need to control costs for financial performance and the spending required for employee satisfaction. As the team walked back from the meeting, they were reminded of the painful and humbling experience in 2003 that had made Infosys sharply aware of the difficulties ahead as it transitioned from a small to a large company. The decade since Ravichandar joined Infosys in 1992 had been a heady one for both the Indian software industry and Infosys. From March 1993 to March 2003, Infosys had a compound annual growth rate of 65%, and its revenues had jumped from US$5 million to US$754 million (Exhibit 1). As it had grown, it had added people at an equally impressive rate, from 250 employees in 1992 to over 15,000 in 2002. Infosys had always recognized that its...
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...various terms used in stock exchanges, trading in stock exchanges, clearing and settlement, rolling settlement, online trading, internet trading, market indices, types of public issue Which is benchmark stock market index of India? How many securities are there in Nifty Index? How many securities are there in Sensex? Which index will have high volatility Nifty or BSE Midcap? What do you mean by primary market? ------------------------------------------------- What do you mean by secondary market? What do you mean by stock split? What do you mean by Bonus Issue? What do you mean by Buy Back? What do you mean by Right issue of shares? What are ADR’s? ------------------------------------------------- What is the difference in between IPO and FPO? Risk-Return analysis Risk meaning and Measurement – Types of Risk – Systematic, Unsystematic risk, Beta Coefficient, Alpha, CAPM theory etc. What is return? Expected rate of Return, computation formulae. Case studies on risk-return using standard deviation, variance, probability and other statistical tools. ------------------------------------------------- What is beta? ------------------------------------------------- What is cost of equity? ------------------------------------------------- What is WACC? ------------------------------------------------- ------------------------------------------------- "Stock A generates a return of 20% while stock B generates a return of 25%. The risk free-rate is 5%. Stock A has a...
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