... | CONTENTS Page No. * OBJECTIVES 3 * COMPANY PROFILES 4 i. Mahindra Finance ii. Unitech Ltd. * PROJECT METHODOLOGY AND ANALYSIS 5 * Objectives of the project * Scope of the project * Concepts * Excel Analysis * Computational Aspects * INTERPRETATION AND CONCLUSION 11 * REFERENCES 11 OBJECTIVES * To select the stocks of two companies from different sectors to invest. * To determine the beta value for each of the stocks for last financial year on the basis of National Stock Exchange (NSE) and interpretation of beta. * To determine a minimum risk portfolio by using the two stocks. Company Profiles Mahindra Finance Mahindra & Mahindra Financial Services Limited is one of the leading non-banking finance companies in India. It is among the top 500 Indian companies by market capitalization. For the fiscal ended 31 March 2011, Mahindra Finance recorded a standalone net profit of 463.10 Crore against 342.70 Crore in FY10-11. In the same period, Mahindra Finance’s consolidated net profit stood at 493.66 Crore compared to 356.09 Crore. Unitech Ltd. Established in 1972, Unitech is today a leading real estate developer in India. Known for the quality of its...
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...ABC by mbaadmissiongurus.com Mobile: +91 ########## ~ Phone: +91 ########## ~ Email: abc@gmail.com SENIOR MANAGEMENT EXECUTIVE Senior professional with consistent success in achieving revenue, profit and business growth objectives, within turn around environments in financial services industry. Highly successful in building relationship with senior decision makers, leading and motivating teams and managing Profit & Loss (P&L) for business divisions. Proven ability in driving new business through key accounts, establishing strategic partnerships and complex, multi-channel relationships to increase channel revenue. Capabilities in - Wealth Management - Profit Centre Operations - Customer Relationship Management - Business Development - Product Management - Marketing/Brand Management - Legal Business Issues - Channel Management - People Management Career Highlights ABC1 Inc. Aug.’06 till date The ABC1 Inc. - Asset Management Company is among the top ten asset managers in India. Launched in April 2006, ABC1 Inc. Portfolio Management Services (PMS) caters to the unique needs of enterprises and High Networth Individuals. Vice President - (Portfolio Management Services) Distinction of establishing the PMS business and increasing assets under management to US$ 250 Million, a ten fold increase within one year of operations ...
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...ft Beta Estimation Practice And Its Reliability Biasness Towards Aggressive Stocks: An Empirical Evidence From NSE * Dr. Neeraj Sanghi ** Dr. Gaurav Bansal INTRODUCTION While investing in a capital market, investors always have concern about the market movements or changes in the value of capital market index. This tendency of investors' behavior is related to a psychological factor that reveals that market movements and prices of stocks are closely related to each other. Upward / downward movement in market index gives trigger to the expectation of investors that the value of their holding would move accordingly. This is, more formally, known as systematic risk arising on account of economic wide uncertainties and explains the tendency of stock's price movement together with changes in market index. Systematic risk, also known as market risk, cannot be reduced through diversification of stocks' portfolio. Investors arc exposed to market risk even when they hold well diversified portfolio of securities. In finance literature, beta coefficient is a measurement statistic of systematic risk; it refers to the slope in a linear relationship fitted to data on the rate of return on a stoek and Ihc rate of return of the market (or market index). This usage stems from Sharpe's 1963 paper in Management Science. Beta is the stock's sensitivity to the market index: it is the degree (in percentage) by which the stock's relum lends to increase or decrease for every 1% increase or decrease...
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...1991. Some of the characteristics of the country are as follows: Capital | New Delhi | Form of Government | Democratic/Republic | Population | 1.21 billion | Per Capita Income | $3851 | Inflation rate | 5.96% | GDP growth | 4.5% | External Debt | $345 billion | External Debt to GDP ratio | 67.57 | Trade Balance | -967.2 billion | Language | Official: Hindi, English. Many more recognized | Major cities | Delhi, Mumbai, Chennai, Kolkata | Climate | | Trade Block association | ASEAN, SAARC, | GINI Coefficient | 36.8 | Human Development Index | 0.554 | Much recent news confirms the fact that India is one of the major destinations for the expansion. Recently Jet-Etihad deal, high growth in FII in the Indian Stock market, green field and brown field investment in the sectors of aviation, multi-retail are some the recent news and changes in the law made in the country making the investment safer and more diverse. According to E&Y report going forward economic outlook for the country is very encouraging. Global sentiments for the country have improved a lot in the recent past despite of some complications in the economy. Also most of the leading indicators specify the...
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...TOPIC: FINANCIAL ANALYSIS (MUNDRA PORT) SUBMITTED TO: Mr Sachin Kyashap SUBMITTED BY: Jasneet Kaur COURSE: MBA (1ST YR) ROLL NO: Q3103 (B) 33 About the company Mundra Port and Special Economic Zone Limited (MPSEZL) is the developer and operator of the Mundra Port, one of the leading commercial private sector ports in India. The port is located in the Kutch District of Gujarat, on the northwest coast of India. The multi-product SEZ at Mundra and the surrounding areas is one of India's largest port-led SEZ. Incorporated as Gujarat Adani Port Limited in 1998, MPSEZL is a part of the Adani Group, one of India's leading business houses. The Company accessed the capital markets in 2007-08 and is listed on the National Stock Exchange of India and the Bombay Stock Exchange. The port The por t handles close to 30 million tonnes of cargo, ranging from bulk cargo, container cargo, automobiles and crude oil. It has 8 operational multi-purpose berths located in sufficiently deep water which are designed and equipped to handle dry bulk, break bulk and liquid cargo. We have successfully commissioned a container terminal capable of handling one million Twenty-feet Equivalent Units (TEU) with state-of-the-art handling equipment’s and highly skilled and productive operating manpower. The container terminal has an excellent draft and is capable of accommodating cape size ships. The terminal is configured to handle automobile exports too. Other port based services and infrastructure include...
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...IDEA Cellular is a publicly listed company, having listed on the Bombay Stock Exchange (BSE and the National Stock Exchange (NSE) in March 2007. IDEA Cellular is a leading GSM mobile service operator with pan India licenses. With a customer base of over 40 million in 15 service areas, operations are soon expected to start in Orissa and Tamil Nadu-the first steps in providing pan India services covering over 90% of India's telephony potential. A frontrunner in introducing revolutionary tariff plans, IDEA Cellular has the distinction of offering the most customer friendly and competitive Pre Paid offerings, for the first time in India in an increasingly segmented market. Customer Service and Innovation are the drivers of this Cellular Brand. A brand known for many firsts, Idea was the first to launch GPRS and EDGE in the country. Idea has received international recognition for its path-breaking innovations when it won the GSM Association Award for "Best Billing and Customer Care Solution" for 2 consecutive years. IDEA Cellular is part of the Aditya Birla Group, India's first truly multinational corporation. The group operates in 25 countries, and is anchored by over 1,25,000 employees belonging to 25 nationalities. The Group has been adjudged 'The Best Employer in India and among the Top 20 in Asia' by the Hewitt-Economic Times and Wall Street Journal Study 2007. Our Service Areas 11 The Indian telecommunications market for mobile services is divided into 22...
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...Indian Stock Market. The history of Indian stock market is about 200 years old. Prior to this the hundis and bills of exchange were in use, specially in the medieval period, which can be considered as a form of virtual stock trading but it was certainly not an organized stock trading. The recorded stock trading can be traced only after the arrival of East India Company. The first organized stock market that was governed by the rules and regulations came into the existence in the form of The Native Share and Stock Brokers' Association in 1875. After gone through numerous changes this association is today better as Bombay Stock Exchange, which remains the premier stock exchange since its inception. During this period several other exchanges were launched and some of which were closed also. Presently, there are 19 recognized stock exchanges out of which four are national level exchanges and the remaining are regional exchanges. National Stock Exchange, established in 1992, was the last exchange. Although the regional level exchanges are in existence the volume of trading in these exchanges is negligible. National Stock Exchange and Bombay Stock Exchange are the leaders of Indian Securities Market in terms of listing, trading and volumes. The last 15 years of the Indian securities market can be considered as the most important part of the history where the market gone through the post liberalization era of Indian economy and witnessed the formation of Securities and Exchange Board...
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...which a stock market will stop trading for a while when the value of a stock drops substantially. It is used by stock exchanges to avert panic selling when investors do large sell offs. This helps prevent market free fall and create a balance between buy and sell orders. HISTORY Circuit breakers were introduced in the market in response to Black Monday, which was an uneventful day, On Oct 19th, 1987; the market plunged 508 points (22%) and lost $500bn in one day. Circuit breakers were introduced in October 1989. Circuit breakers have evolved and have strict guidelines these days. Circuit breakers were placed at drop points. Which meant if the market dropped by 400 or 500 points, they would come into effect. In 1997, this was given way for a more rational percentage based circuit breaker system. If the market dropped by 10% or 20%, circuit breakers would come into effect. In the US markets, SEC can halt trading if the DJIA drops by 10% before 2.30pm. If the DJIA drops 30% at any pint in the day, trading for the day ends. DJIA has dropped more than 10% only three times in its history. CIRCUIT BREAKER in INDIA. They were introduced in 2001 by the SEBI ( Securities & Exchange Board of India). They will apply if the Bombay Stock Exchange or National Stock Exchange moves by 10%, 15% or 20%. On May 18, 2009, trading on India’s Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) was...
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...STRATEGIC FINANCE Student I.D.#: SP16-EX-0053 Program: MBA Name: Malik.M.Umair Wasif Student I.D.#: SP16-EX-0053 Program: MBA Course Title: A.R.M Instructor: Sir Umair Baig TABLE OF CONTENT S.NO. | CONTENTS | PAGE NO. | 1 | Scope of the research paper | 3 | 2 | Introduction | 3 | 3 | Research methodology | 3-4 | 4 | Conclusion | 4 | 5 | Limitations and future direction of research | 4-5 | | (a) Limitations | 4 | | (b) Future direction of research | 5 | BEST PRACTICES IN ESTIMATING COST OF CAPITAL 1. THE SCOPE OF THE RESEARCH PAPER: It is a survey research paper presenting the results of the cost of capital survey of advisors, corporations etc showing a close alignment among the groups on the use of common theoretical framework and on many aspects of estimation. Variations are found on large number of joint choices regarding cost of capital. 2. INTRODUCTION TO THE TOPIC: The paper is about presenting evidence that how some of the most financially sophisticated companies and financial advisers estimate capital cost. The evidence to be presents is valuable in several aspects. First is to identify the most important ambiguities in the application of cost of capital theory and the second is helping interested companies benchmarking their cost of capital estimation practices against best practice peers. Third is that the evidence sheds light on the accuracy with which the capital costs can be reasonably estimated. The cost of capital can...
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...Introduction: Generally shares are issued in the primary market and new issued shares are traded in the secondary market. BSE and NSE are two renowned stock exchanges which plays an important role in Indian stock market. Most of the big companies in India are listed in these stock exchanges. The companies are enlisted with these stock exchanges as per rules and regulation specified by particular stock exchanges (Greer and Kolbe, 2008). In Indian context the company distributes the shares in lieu of capital with the help of these stock exchanges. It is an essential pillar of private sector companies. Mallin and Ow–Yong (2009) commented that capital formation is the main function of stock exchanges. Beside the main function stock exchanges in India do lots of work. It provides a place where all the securities are traded. Security market provides a linkage between saving sector and corporate sector. Stock market generally provides the all the information about price and trading of the securities altogether. The author selects three big companies i.e. Reliance industries ltd, ONGC, Bharti Airtel Ltd, to compare as required in the assignment. In this report the author collects financial and statistical data of these companies and analyse them to make reasonable comments on the above companies (CACEIS, 2010). 2.0. Calculations of returns of stocks: Calculation of daily and monthly return of different companies shows in the Excel Sheet 1,2 3,4,5 and 6 [Available from:...
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...FIN 3103 FINANCIAL MARKETS AND INSTITUTIONS– SECTION 1A AN INTRODUCTION TO THE ASIAN EQUITY MARKET & ITS EXCHANGES SAMUEL TOW WEE YAP (A0102724U) LIEW KUANG CHEN JOEL (A0004624U) ANG CHUAN HWEN JEREMY (A0080928X) LIAW YIH HANG (A0091535E) WU GUIYAN (A0100395N) ZHAO CHUANYI (A0105563L) Contents 1. Introduction ..................................................................................................................................................................................................... 4 2. Objectives of the Stock Market ................................................................................................................................................................. 4 2.1 Capital Formation ......................................................................................................................................................................................... 4 2.2 Connecting Traders ...................................................................................................................................................................................... 4 2.3 Security............................................................................................................................................................................................................. 4 2.4 Economic Indicator ...................................................................................................
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...have by buying and selling stocks on exchange markets. The two most familiar exchanges are NYSE and NASDAQ. The New York Stock Exchange is a Euro-American national security exchange that operates multiple security exchanges. It maintains a leading position in global exchange products market. In 2011, NYSE-Euronext led the market in Exchange Traded Products with more than 450 new ETN listed. The market’s impressive growth has been a success from their rests of structuring nearly 85% of their leading venue for Exchange Traded Funds, Exchange Traded Notes, Exchange Traded Vehicles, and Warrant and Certificate trading. The product offering of the marketplace gives investors access of regulated listings as well as fast and innovative tools to quickly convert assets to cash. The trade of equities, futures, options, fixed-income and exchange-traded products comes from the company’s exchanges in Europe and the United States. NYSE Liffe is a derivative business operated by NYSE-Euronext, which offers comprehensive commercial technology along with connectivity, market data products and services. (NYSE-Euronext) NASADAQ is known as an American stock exchange market, which originally stands for National Association of Securities Dealers Automated Quotations. Other than NYSE, NASDAQ is the second-largest stock exchange by market capitalization in the world. It was founded and began trading in 1971, and ended up being the world’s first electronic stock market. It is a system set...
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... ➢ Data entry ➢ Overtime ➢ Supervision expenses Further, it enables - ➢ Easy reach to a fast growing online community ➢ Unlimited shelf place for products and services ➢ Fuse the global geographical and time zone boundaries ➢ Reach national and global markets at low operating costs The sudden spurt in growth of e-commerce in India is felt due to the following favourable factors: ➢ Rapidly increasing Internet user base ➢ Technology advancements such as VOIP (Voice-over-IP) have bridged the gap between buyers and sellers online ➢ The emergence of blogs as an avenue for information dissemination and two-way communication for online retailers and E-Commerce vendors ➢ Improved fraud prevention technologies that offer a safe and secure business environment and help prevent credit card frauds, identity thefts and phishing ➢ Longer reach - Consumers in the Tier II & Tier III cities are fast realizing the potential of the Internet as a transacting medium ➢ The young population find online transactions much easier B) ENTRY OF E-COMMERCE IN SECURITY MARKET Stock market is a trading platform which provides an opportunity to buyers and sellers of securities to do transactions. Stock markets all over the world have realized the potential of IT and have moved over to...
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...Chapter II History & Evolution of Stock Exchanges in India 2.1 Introduction: Before we study the historic volatile days of the ten years, let us first know what are : a) Stock Markets, b) Stock exchanges. a) Stock Markets: Stock Market is a market where the trading of company stock, both listed securities and unlisted takes place. It is different from stock exchange because it includes all the national stock exchanges of the country. For example, we use the term, "the stock market was up today" or "the stock market bubble." b) Stock Exchanges: Stock Exchanges are an organized marketplace, either corporation or mutual organization, where members of the organization gather to trade company stocks or other securities. The members may act either as agents for their customers, or as principals for their own accounts. Stock exchanges also facilitates for the issue and redemption of securities and other financial instruments including the payment of income and dividends. The record keeping is central but trade is linked to such physical place because modern markets are computerized. The trade on an exchange is only by members and stock broker do have a seat on the exchange. 2.2 History of Indian Stock Market: Indian stock market marks to be one of the oldest stock market in Asia. It dates back to the close of 18th century when the East India Company used to transact loan securities. In the 1830s, trading on corporate stocks and shares in Bank and Cotton presses...
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...of the capital market in India dates back to the eighteenth century, one of the oldest in Asia; When East India Company securities were traded in the country. Until the end of the nineteenth century securities trading was unorganized and the main trading centres were Mumbai and Calcutta. Of the two, Bombay was the chief trading centre wherein bank shares were the major trading stock During the American Civil War (1860-61). Bombay was an important source of supply for cotton. Hence, trading activities flourished during the period, resulting in a boom in share prices. This boom, the first in the history of the Indian capital market lasted for a half a decade. The bubble burst on July 1, 1865 when there was tremendous slump in share prices. Trading was at that time limited to a dozen brokers; their trading place was under a banyan tree in front of the Town hall in Mumbai. These stock brokers organized informal association in 1897 – Native Shares and Stock Brokers Association, Bombay. The Stock exchanges in Calcutta ad Ahmedabad also industrial and trading centers, came up later. The Bombay Stock Exchange was recognized in May 1927 under the Bombay Securities Contracts Control Act, 1925. The capital market was not well organized and developed during the British rule because the British government was not interested in the economic growth of the country. As a result many foreign companies depended on the London capital market for funds rather than in the Indian capital market....
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