1.

1 Introduction of the study

The stock market has been a part of people's lives throughout the
twentieth century. Millions of people around the world have money
invested in their countries own respective markets. Since the coming of
age of online trading, more people have been investing their money in
stocks than ever before because of the advantages it offers. Online
trading allows people to trade stocks quickly without the help of a
broker, letting the investors have more control over their transactions.
The competition between companies has helped decrease the cost of
making the transactions. In addition to that, ordinary people now have
access to information that could only be seen by broke`. Overall, online
trading saves time, money and gives power to the investor rather than
the broker. The securities can invest in shares, government securities,
Derivative products, commodities
In financial markets, stock is the capital raised by a corporation
through

the

issuance

and

distribution

of

shares.

A person

or

organization which holds shares of stocks is called a shareholder. The

aggregate

value

of

corporation's

issued

shares

is

its

market

capitalization. When one buys a share of a company he becomes a

shareholder in that company. Shares are also known as Equities.
Equities have the potential to increase in value over time. It also
provides the portfolio with the growth necessary to reach the long-term
investment goals. Research studies have proved that the equities have
outperformed than most other forms of investments in the long term.
Equities are considered the most challenging and the rewarding, when
compared to other investment options. Research studies have proved
that investments in some shares with a longer tenure of investment
have yielded far superior returns than any other investment. However,
this does not mean all equity investments would guarantee similar high
returns. Equities are high-risk investments. One needs to study them
1

carefully before investing. Since 1990 till date, Indian stock market has
returned about 17% to investors on an average in terms of
Increase in share prices or capital appreciation annually. Besides that
on average stocks have paid 1.5 % dividend annually. Dividend is a
percentage of the face value of a share that a company returns to its
shareholders from its annual profits. Compared to most other forms of
investments, investing in equity shares offers the highest rate of return,
if invested over a longer duration. The first company to issue shares of
stock was the Dutch East India Company, in 1602. The innovation of
joint ownership made a great deal of Europe's economic growth
possible following the Middle Ages.

STRUCTURE OF THE CAPITAL MARKET

1.2 Need for the study:

The need of the study is to describe the techniques and planning
in present investment environment. Apart from this, the objective of
this study is to keenly understand issues, examines all the essential
analysis
and techniques as to how to apply them successfully. It incorporates
sections on fundamental analysis in the contexts of various companies
in the stock markets.
The purpose of the study is to supply, inform suitable guidance
to retail investors. For the purpose of study the volatility in the
banking industries stock prices for certain period are considered. For
this study the data collected are return and risk of investing an
industrial stock. Equity analysis and market price of shares of
INFOSYS, TCS, WIPRO, HDFC BANK, ICICI BANK, AXIS BANK are
considered for the study.

1.3 Objectives of the study:

To understand what Equity markets are.

To understand the performance of few Indian industry sectors viz. Software &
Banking.

To understand the performance of SIX Indian companies of the above two

sectors.

To make comparative analysis of inter and intra sectors, basing on past 5 years
data (April 1st 2007 to 31st -March 2013). And to analyze short term
performance with factors from period September 1st 2012 to 31st January 2013.

To evaluate the investment prospects of these companies.

1.4 Scope of the Study:

This study cover introduction to capital market and trading to serve as basic
material for capital market operations. However basic fundamentals have been
brought out which can be also helpful for the study in large scale studies.

1.5 Research Methodology

METHODOLOGY OF THE STUDY
All information related to the topic needs to be carefully scrutinized to avoid
the risk of biased analysis. Having once identified which information is relevant and
need to be collected, we will have to define how this will be done.
The Method employed in the investigation depends on the purpose and scope of the
study.
Research Design:
Research design is some statement or specification of procedures for
collecting and analyzing the information required for the solution of some specific
problem. Here, the exploratory research is used as investigation and is mainly
concerned with determining the trends and returns in Mutual Funds and Bank returns.

Sources of Information:
Data available in marketing research are either primary or secondary. Primary
and Secondary Data is included in this study

Method of data collection:PRIMARY DATA: The primary data that has been collected through personnel
interview with various heads and individual traders in Sharekhan Limited.
SECONDARY DATA: It is the data which has already been collected by someone
or an organization for some other purpose or research study .The data for study has
been collected from various sources:

Books

Journals

News pares & electronic media

Internet sources

BSE

NSE

1.6 Limitations:

Duration of the project is only 45 days, so not possible to

evaluate other sector performance also.

There is a time frame for every company, like not taken

historical daily records into consideration.

Analysis based on only correlation to one sector stocks to other

stocks and shown impact of financial results impact only and not
applied any research.

The information which I am going to mention is completely

secondary data.

REVIEW OF LITERATURE
Definition of 'Equity '
A mutual fund that invests principally in stocks. It can be actively or passively (index
fund) managed.
1. A stock or any other security representing an ownership interest.
2. On a company's balance sheet, the amount of the funds contributed by the wners
(the stockholders) plus the retained earnings (or losses). Also referred to as
shareholders' equity".
3. In the context of margin trading, the value of securities in a margin account minus
what has been borrowed from the brokerage.
4. In the context of real estate, the difference between the current market value of the
property and the amount the owner still owes on the mortgage. It is the amount that
the owner would receive after selling a property and paying off the mortgage.
5. In terms of investment strategies, equity (stocks) is one of the principal asset
classes. The other two are fixed-income (bonds) and cash/cash-equivalents. These are
used in asset allocation planning to structure a desired risk and return profile for an
investor's portfolio.
Investopedia explains 'Equity '
The term's meaning depends very much on the context. In finance, in general, you
can think of equity as ownership in any asset after all debts associated with that asset
are paid off. For example, a car or house with no outstanding debt is considered the
6

owner's equity because he or she can readily sell the item for cash. Stocks are equity
because they represent ownership in a company.
-www.investopedia.com/terms/e/equity
Equity: The portion of a company's assets that the shareholders own, as opposed to
what they've borrowed: equal to total assets minus liabilities. Also called "owners'
equity" or "shareholders' equity".
Equity is detailed on the balance sheet.
"Equity" is also used as an adjective, to describe mutual funds that invest in stocks,
rather than bonds.
-http://www.moneychimp.com/glossary/equity.htm

In accounting and finance, equity is the residual claim or interest of the most junior
class of investors in assets, after all liabilities are paid. If liability exceeds
assets, negative equity exists. In an accounting context, Shareholders' equity (or
stockholders' equity, shareholders' funds, shareholders' capital or similar terms)
represents the remaining interest in assets of a company, spread among
individual shareholders of common or preferred stock.
At the start of a business, owners put some funding into the business to
finance operations. This creates a liability on the business in the shape ofcapital as the
business is a separate entity from its owners. Businesses can be considered,
for accounting purposes, sums of liabilities and assets; this is the accounting equation.
After liabilities have been accounted for, the positive remainder is deemed the owner's
interest in the business.
This definition is helpful in understanding the liquidation process in case
of bankruptcy. At first, all the secured creditors are paid against proceeds from assets.
Afterward, a series of creditors, ranked in priority sequence, have the next claim/right
on the residual proceeds. Ownership equity is the last or residual claim against assets,
paid only after all other creditors are paid. In such cases where even creditors could
not get enough money to pay their bills, nothing is left over to reimburse owners'
equity. Thus owners' equity is reduced to zero. Ownership equity is also known as risk
capital or liable capital.
7

en.wikipedia.org/wiki/Equity_(finance)
In financial accounting, owner's equity consists of the net assets of an entity. Net
assets is the difference between the total assets of the entity and all its liabilities.
[1]

Equity appears on thebalance sheet / statement of financial position, one of the four

primary financial statements.

The assets of an entity includes both tangible and intangible items, such as brand
names and reputation or goodwill. The types of accounts and their description that
comprise the owner's equity depend on the nature of the entity and may include:

Share capital (common stock)

Preferred stock

Capital surplus

Retained earnings

Treasury stock

Stock options
--en.wikipedia.org/wiki/Equity_(financ
e)

The concept of capital market is in a way 130 years old. Capital market was known as
share bazaar it was also treated as a satta bazaar starting of capital market concept
in India took place with the birth of Bombay Stock Exchange.
A securities contract (Regulation) Act of 1956 of India was first major step to
recognize capital market. Bombay Stock Exchange got first recognition in 1956 under
this act.
Bombay Stock Exchange, which was the major stock exchange, in way had monopoly
in the Indian capital market till the birth of National Stock Exchange. Bombay Stock
Exchange celebrated its 125th jubilee year in the 2000. The capital market, the stock
exchange, the Equity concept was baby till 1960. And the concept of mutual fund was
introduced by the government with the formation of Unit Trust of India in 1963-64.
8

Capital market in India is a new development compared to the western world. India
was known as under developed country from the view point of economic and
industrial growth. After getting freedom in 1947, India started thinking about planned
development in 1948. The first industrial policy development statement was made on
April 6th 1948.
The concept of capital market is directly linked with industrial development of
country. It is also treated as barometer of economic growth. Industrial development
started in India in 19th century, there were very few entrepreneurs known as Tatas,
Birlas, etc. who started industries in their own country i.e. India. In the 20 th century
first quarter, this group started big industries in major metropolitan cities.
Stock exchanges have a very important function to fulfill in the countrys economy.
Its main function is to liquefy capital by enabling a person who has invested money
in.
The stock exchange is really an essential pillar of the private sector corporate
economy.
The stock exchange provides a market place for purchase and sale of securities i.e.
shares, bonds, debentures, etc
The stock exchange provides the linkage between the saving in the house hold sector
and the investment in corporate economy.
By providing a market quotation of the prices of shares and bonds a sort of collective
judgment simultaneously reached by many buyers and sellers in the market. The stock
exchanges serve the role of barometer. Exchanges serve the role of barometer, not
only the state of health of individual companies, but also of the nations economy as a
whole.
Another important function that the stock exchange in India discharge is of providing
market for gilt-edged securities i.e. securities issued by the government sectors,
municipalities, improvement trust, and other public bodies.

There are 22 stock exchange in India, the first being the Bombay Stock Exchange
(BSE),which began formal trading in 1875, making it one of the oldest in Asia. Over
the last few years, there has been a rapid change in the Indian securities market,
especially in the secondary market. Advanced technology and online-based
transactions have modernized the stock exchanges. In terms of the number of
companies listed and total market capitalization, the Indian equity market is
considered large relative to the countrys stage of economic development. The number
of listed companies increased from 5,968 in March 1990 to about 10,000 by May
1998 and market capitalization has grown almost 11 times during the same period.
The debt market, however, is almost nonexistent in India even though there has been a
large volume of Government bonds traded. Banks and financial institutions have been
holding a substantial part of these bonds as statutory liquidity requirement. The
portfolio restrictions on financial institutions statutory liquidity requirement are still in
place.
A primary auction market for Government securities has been created and a primary
dealer system was introduced in 1995. There are six authorized primary dealers.
Currently, there are 31 mutual funds, out of which 21 are in the private sector. Mutual
funds were opened to the private sector in 1992. Earlier, in 1987, banks were allowed
to enter this business, breaking the monopoly of the Unit Trust of India (UTI), which
maintains a dominant position. Before 1992, many factors obstructed the expansion of
equity trading. Fresh capital issues were controlled through the Capital Issues Control
Act. Trading practices were not transparent, and there was a large amount of insider
trading. Recognizing the importance of increasing investor protection, several
measures were enacted to improve the fairness of the capital market. The Securities
and Exchange Board of India (SEBI) was established in 1988. Despite the rules it set,
problems continued to exist, including those relating to disclosure criteria, lack of
broker capital adequacy, and poor regulation of merchant bankers and underwriters.
There have been significant reforms in the regulation of the securities market since
1992 in conjunction with overall economic and financial reforms.
In 1992, the SEBI Act was enacted giving SEBI statutory as an apex regulatory body.
And a series of reforms was introduced to improve investor protection.
10

Automation of stock trading, integration of national markets, and efficiency of

market operations. India has seen a tremendous change in the secondary market for
equity. Its equity market will most likely be comparable with the worlds most
advanced secondary markets within a year or two. The key ingredients that underlie
market quality in Indias equity market are:

Exchange based on open electronic limit order book;

Nationwide integrated market with a large number of informed

traders and fluency of short or long positions; and

No counter party risk.

1 INDUSTRY PROFILE
11

NATIONAL STOCK EXCHANGE

The National Stock Exchange of India (NSE) situated in Mumbai - is the
largest and most advanced exchange with 1016 companies listed and 726 trading
members. Capital market reforms in India and the launch of the Securities and
Exchange Board of India (SEBI) accelerated the incorporation of the second Indian
stock exchange called the National Stock Exchange (NSE) in 1992. After a few years
of operations, the NSE has become the largest stock exchange in India.
Three segments of the NSE trading platform were established one after another. The
Wholesale Debt Market (WDM) commenced operations in June 1994 and the Capital
Market (CM) segment was opened at the end of 1994. Finally, the Futures and
Options segment began operating in 2000. Today the NSE takes the 14th position in
the top 40 futures exchanges in the world.
In 1996, the National Stock Exchange of India launched S&P CNX Nifty and CNX
Junior Indices that make up 100 most liquid stocks in India. CNX Nifty is a
diversified index of 50 stocks from 25 different economy sectors. The Indices are
owned and managed by India Index Services and Products Ltd (IISL) that has a
consulting and licensing agreement with Standard & Poor's.
In 1998, the National Stock Exchange of India launched its web-site and was the first
exchange in India that started trading stock on the Internet in 2000. The NSE has also
proved its leadership in the Indian financial market by gaining many awards such as
'Best IT Usage Award' by Computer Society in India (in 1996 and 1997) and CHIP
Web Award by CHIP magazine (1999).
The NSE is owned by the group of leading financial institutions such as Indian Bank
or Life Insurance Corporation of India. However, in the totally de-mutualised
Exchange, the ownership as well as the management does not have a right to trade on
the Exchange. Only qualified traders can be involved in the securities trading.

12

The NSE is one of the few exchanges in the world trading all types of securities on a
single platform, which is divided into three segments: Wholesale Debt Market
(WDM), Capital Market (CM), and Futures & Options (F&O) Market.
Each segment has experienced a significant growth throughout a few years of their
launch. While the WDM segment has accumulated the annual growth of over 36%
since its opening in 1994, the CM segment has increased by even 61% during the
same period. The National Stock Exchange of India has stringent requirements and
criteria for the companies listed on the Exchange. Minimum capital requirements,
project appraisal, and company's track record are just a few of the criteria. In addition,
listed companies pay variable listing fees based on their corporate capital size.
The National Stock Exchange of India Ltd. provides its clients with a single, fully
electronic trading platform that is operated through a VSAT network. Unlike most
world exchanges, the NSE uses the satellite communication system that connects
traders from 345 Indian cities. The advanced technologies enable up to 6 million
trades to be operated daily on the NSE trading platform.
NSE Nifty:
The S&P CNX Nifty (nicknamed Nifty 50 or simply Nifty), is the leading index for
large companies on the National Stock Exchange of India. S&P CNX Nifty is a well
diversified 50 stock index accounting for 22 sectors of the economy. It is used for a
variety of purposes such as benchmarking fund portfolios, index based derivatives and
index funds.
Nifty was developed by the economists Ajay Shah and Susan Thomas, then at IGIDR.
Later on, it came to be owned and managed by India Index Services and Products Ltd.
(IISL), which is a joint venture between NSE and CRISIL. IISL is India's first
specialised company focused upon the index as a core product. IISL have a consulting
and licensing agreement with Standard & Poor's (S&P), who are world leaders in
index services.
CNX stands for CRISIL NSE Indices. CNX ensures common branding of indices, to
reflect the identities of both the promoters, i.e. NSE and CRISIL. Thus, 'C' stands for
CRISIL, 'N' stands for NSE and X stands for Exchange or Index. The S&P prefix
belongs to the US-based Standard & Poor's Financial Information Services.
NSE other indices:
S&P CNX Nifty
13

 CNX Nifty Junior

CNX 100
S&P CNX 500
CNX Midcap
S&P CNX Defty
CNX Midcap 200

BOMBAY STOCK EXCHANGE:

The Bombay Stock Exchange Limited (formerly, The Stock Exchange, Mumbai;
popularly called The Bombay Stock Exchange, or BSE) is the oldest stock exchange
in Asia. It is located at Dalal Street, Mumbai, India.
Bombay Stock Exchange was established in 1875. There are around 5,600 Indian
companies listed with the stock exchange, and has a significant trading volume. As of
October2006, the market capitalization of the BSE was about Rs. 33.4 trillion (US $
730 billion). The BSE SENSEX (Sensitive index), also called the BSE 30, is a widely
used market index in India and Asia. As of 2005, it is among the 5 biggest stock
exchanges in the world in terms of transactions volume.
History:
An informal group of 22 stockbrokers began trading under a banyan tree opposite the
Town Hall of Bombay from the mid-1850s, 1875, was formally organized as the
Bombay Stock Exchange (BSE).In January 1899, the stock exchange moved into the
Brokers Hall after it was inaugurated by James M MacLean. After the First World
War, the BSE was shifted to an old building near the Town Hall. In 1956, the
Government of India recognized the Bombay Stock Exchange as the first stock
exchange in the country under the Securities Contracts (Regulation) Act.1995, when it
was replaced by an electronic (eTrading) system named BOLT, or the BSE Online
Trading system. In 2005, the status of the exchange changed from an Association of
Persons (AoP) to a full fledged corporation under the BSE (Corporatization and

14

Demutualization) Scheme, 2005 (and its name was changed to The Bombay Stock
Exchange Limited).
BSE Sensex:
The BSE SENSEX (also known as the BSE 30) is a value-weighted index composed
of 30 scrips, with the base April 1979 = 100. The set of companies which make up the
index has been changed only a few times in the last 20 years. These companies
account for around one-fifth of the market capitalization of the BSE.
SENSEX, first compiled in 1986 was calculated on a "Market CapitalizationWeighted" methodology of 30 component stocks representing a sample of large, wellestablished and financially sound companies. The base year of SENSEX is 1978-79.
The index is widely reported in both domestic and international markets through print
as well as electronic media. SENSEX is not only scientifically designed but also
based on globally accepted construction and review methodology. From September
2003, the SENSEX is calculated on a free-float market capitalization methodology.
The "free-float Market Capitalization-Weighted" methodology is a widely followed
index construction methodology on which majority of global equity benchmarks are
based.
The growth of equity markets in India has been phenomenal in the decade gone by.
Right from early nineties the stock market witnessed heightened activity in terms of
various bull and bear runs. More recently, the bourses in India witnessed a similar
frenzy in the 'TMT' sectors. The SENSEX captured all these happenings in the most
judicial manner. One can identify the booms and bust of the Indian equity market
through SENSEX.
The values of all BSE indices are updated every 15 seconds during the market hours
and displayed through the BOLT system, BSE website and news wire agencies.
SENSEX calculation:
SENSEX is calculated using a "Market Capitalization-Weighted" methodology.
As per this methodology, the level of index at any point of time reflects the total
market value of 30 component stocks relative to a base period. (The market
capitalization of a company is determined by multiplying the price of its stock by the
number of shares issued by the company). An index of a set of combined variables
(such as price and number of shares) is commonly referred as a 'Composite Index' by
statisticians. A single indexed number is used to represent the results of this
15

calculation in order to make the value easier to work with and track over time. It is
much easier to graph a chart based on indexed values than one based on actual
values.
The base period of SENSEX is 1978-79. The actual total market value of the
stocks in the Index during the base period has been set equal to an indexed value of
100. This is often indicated by the notation 1978-79=100. The formula used to
calculate the Index is fairly straightforward. However, the calculation of the
adjustments to the Index (commonly called Index maintenance) is more complex.
The calculation of SENSEX involves dividing the total market capitalization of 30
companies in the Index by a number called the Index Divisor. The Divisor is the only
link to the original base period value of the SENSEX. It keeps the Index comparable
over time and is the adjustment point for all Index maintenance adjustments. During
market hours, prices of the index scrips, at which latest trades are executed, are used
by the trading system to calculate SENSEX every 15 seconds and disseminated in real
time.During market hours, prices of the index scrips, at which trades are executed, are
automatically used by the trading computer to calculate the SENSEX every 15
seconds and continuously updated on all trading workstations connected to the BSE
trading computer in real time.
BSE - other Indices:
Apart from BSE SENSEX, which is the most popular stock index in India, BSE uses
other stock indices as well:
BSE 500
BSE PSU
BSE MIDCAP
BSE SMLCAP
BSE BANKEX

16

COMPANY PROFILE

ABOUT SHAREKHAN LIMITED:

Sharekhan Limited is one of the fastest growing financial services providers
with a focus on equities, derivatives and commodities brokerage execution on the
National Stock Exchange of India Ltd. (NSE), Bombay Stock Exchange Ltd. (BSE),
National Commodity and Derivatives Exchange India (NCDEX) and Multi
Commodity Exchange of India Ltd. (MCX). Sharekhan provides trade execution
services through multiple channels - an Internet platform, telephone and retail outlets
and is present in 280 cities through a network of 704 locations. The company was
awarded the 2006 Most Preferred Stock Broking Brand by Awwaz Consumer Vote.
ORIGIN:
Sharekhan traces its lineage to SSKI, an organization with more than decades
of trust and credibility in the stock market.
Pioneers of online trading in India- Sharekhan.com was launched in 2000 and
is now the second most visited broking site in India.
Has one of the largest networks of Share shops in the country.
SHAREHOLDING PATTERN:

SHAREHOLDERS

HOLDINGS

CITI Venture Capital and other Private Equity Firm

81%

IDFC

9%

Employees

10%

17

MANAGEMENT TEAM CONSISTS OF:

NAME

POST

Tarun Shah

Chief Executive Officer

Mr. Pathik Gandotra

Head Of Research

Mr. Rishi Kohli

Vice President Of Equity Derivative

Jaideep Arora

Director- Products And Technology

Shankar Vailaya

Director- Operation

Sharekhan Limited offers blend of tradition and technology like Share shops,
dial-n-trade and online trading- where there is choice of three trading interfaces which
are speed trade for active trader, web based classic interface for investor, web based
applet- fast trade for investor. Sharekhan Limited was formerly known as SSKI
Investor Services Private Limited. The company is based in Mumbai, India and its
address is- A-206 Phoenix House, 2nd Floor
Senapati Bapat Marg, Lower Parel
Mumbai, 400 013. India.
Phone: 91 22 24982000
Fax:

91 22 24982626

www.sharekhan.com

18

ADVANCED TECHNOLOGY USED BY SHAREKHAN:

Sharekhan has selected Aspect EnsemblePro from the Aspect Software
Unified IP Contact Center product line, a unified contact centre solution delivering
advanced multichannel contact capabilities, because it provided the best total value
over other solutions evaluated. It enabled Sharekhan to meet customer service needs
for inbound call handling, voice self service, predictive outbound dialing, call
blending, call monitoring and recording, and creating outbound marketing campaigns,
among other capabilities. This helps them to
Increased agent efficiency and productivity.
Enabled company to execute proactive customer service calls and expand
services offered to customers.
Enhanced call monitoring for improved service quality

Financial services are a highly competitive and volume-driven industry which

demands high standards of customer service, effective consultation and quick
deliverables. This is something Sharekhan Limited, a financial services provider
based in India, understands. The company offers several user-friendly services for
customers to manage their stock portfolios, including online capabilities linked to an
information database to help customers confidently invest, and inbound customer
services using voice self-service technology and customer service agents handling
telephone orders from clients.
With a customer base of more than 500000, and a employee of 3100 Sharekhan
continues to grow at a fast pace. Customer satisfaction is a top priority in Sharekhans
agenda.
Its primary objective

To help and support its customers in managing their portfolio in the best
possible manner through quality advice, innovative product and superior
service.

19

Scheme which are provided by Sharekhan cover almost every segment of the
customerSCHEME
First Step
Classic
Speed Trade
Platinum Circle

INVESTOR
New Comer
Trade Occasionally
Day Trader
High Net Worth Individuals

COMPANY BACKGROUND:

Share khan is the retail broking arm of SSKI, securities pvt ltd. SSKI owns 56%
in share khan, balance ownership is HSBC, first caryle, and Intel pacific.

Into broking since 80 years.

Focused on providing equity solutions to every segment.

Largest ground network of 210 branded share shops in 90 cities.

20

DATA ANALYSIS & INTERPRETATION

Growth of CNX NIFTY, FROM FY 2008 TO FY 2013.

GROWTH OF NIFTY IN LAST 5 YEARS (2008 TO 2013):

GROWTH =

5833.75 3483.15 *100

3483.15

67.48%

Growth of IT Index:
GROWTH OF IT INDEX IN LAST 5 YEARS (2008 to 2013):
GROWTH =

7148.1 4347.5 *100

4347.5

64.41%

BANK INDEX
21

Growth of BANKING Index:

GROWTH OF BANKING INDEX IN LAST 5 YEARS (2008 to 2013):
GROWTH =

11765.2 4661.5 *100

4661.5

152.39%

DATA ANALYSIS: Below mentioned data explaining about relationship between

share price and company net profits.

HISTORICAL SHARE PRICE RECORDS OF INFOSYS AT STRATING DAY OF

FINANCIAL YEARS FROM 2008 to 2013
22

Growth of INFOSYS TECHNOLOGIES share price

GROWTH OF INFOSYS TECHNOLOGIES IN LAST 5 YEARS (2008 to 2013):
GROWTH =

6482.6 2981.40*100
2981.40

117.43%

23

REPORTED NET PROFIT FROM 2008 to 2013.

INTERPRETATION: The above charts indicating recorded financial year prices and
recorded net profit at financial years, from FY2006 to FY2011. In share price
moments we can see ups and downs for the given years, growth in 2006 to 2007 and
24

fall in 2007 to 2008, but in FY 2007 to 2008, growth is happened in reported net profit
of company. Its clearly indicating that there are so many factors impacting company
share prices in stock market. A financial result comes under internal factor and there
are few other external factors influencing company share price.

EXTERNAL FACTORS:
1.
2.
3.
4.
5.

International markets
Political impact & Budget impact
Interest rates
Inflation
Other economical variables (GDP growth, IIP Data, dollar impact).

Speculation plays major role in stock market. Indian economy dependable economy
and developing economy, when developed economies like USA, EUROPE,
CHAINA..Etc markets in negative, maximum times Indian markets also performed in
negative. The best example when recession happened in USA, in the FY 2007 to
2009, the impact caused to fall more than 40% in Indian market.
Political impact is also one important factor, like government formation, planning of
central budget and changes in interest rates. In the above graphs from 2009 to 2010
we can see tremendous growth, here UPA government formation and subsidies
provided for industries and tax slabs for individual investors and offered increased
trading limits for FIIs. And one more factor lot of employment created by IT industry
in the given period so based on above changes in government nifty has shown more
than 70% growth in one year.
Changes in interest rates is also influencing Indian stock market, when RBI hikes repo
or reverse repo rates its a negative impact for market, because in todays scenario
every business running on floating rate interest rates, when interest rates increases its
additional burden to the companies, and its a market sentiment also.
Inflation data releases on weekly basis, increased inflation is negative impact, because
when inflation increases automatically savings decreases, one of the major reason to
reach double digit inflation is high fluctuations of daily commodities and frequently
increasing of fuel prices. When government takes necessities actions to control
inflation, its possible to control interest rates also.
25

When GDP growth is negative for two or more consecutive quarters. For all practical
purposes though, a recession starts when there are several quarters of slowing but still
positive growth. The first quarter of negative growth in a recession cycle is often
followed by positive growth for several quarters, and then another quarter of negative
growth. This definition is somewhat unpopular with many economists as it does not
take into consideration changes in other economic variables such as current
unemployment rates or consumer confidence and spending levels. Increased IIP data
is also positive impact for markets.
Based on above factors I have understood to fluctuate a share price of the company
financial performance is not only a reason there are some other factors also
influencing.
In the above charts FY2007 to 2009 we can see fall in share prices of Infosys but at
the same time we can see growth in reported net profits of the company.
During the study sample size are six companies three from IT and three from Banking
sectors, the same fluctuations proved in all the six companies. Below graphical
presentation explaining about remaining five companies performance.

HISTORICAL SHARE PRICE RECORDS OF WIPRO AT STARTING DAY OF

FINANCIAL YEARS FROM 2008 to

Growth of WIPRO LTD. share price

GROWTH OF WIPRO LTD. IN LAST 5 YEARS (2008 to 2013):
26

GROWTH =

480.20 336.05*100
336.05

42.89%

FINANCIAL RESULTS

HISTORICAL SHARE PRICE RECORDS OF TCS AT STRATING DAY OF

FINANCIAL YEARS FROM 2008 to 2013

Growth of TCS share price

GROWTH OF TCS IN LAST 5 YEARS (2008 to 2013):
GROWTH =

1183.9 - 486.85*100
486.85

143.17%
27

REPORTED NET PROFIT OF TCS

HISTORICAL SHARE PRICE RECORDS OF SBIN AT STRATING DAY OF

FINANCIAL YEARS FROM 2008 to 2013.

Growth of STATE BANK OF INDIA share price

GROWTH OF STATE BANK OF INDIA IN LAST 5 YEARS (2008 to 2013):
GROWTH =

2762.20 892.10*100
28

892.10
=

209.6%

REPORTED NET PROFIT

HISTORICAL SHARE PRICE RECORDS OF ICICI BANK AT STRATING DAY

OF FINANCIAL YEARS FROM 2008 to 2013.

Growth of ICICI BANK share price

GROWTH OF ICICI BANK IN LAST 5 YEARS (2008 to 2013):
29

GROWTH =

1097.60 598.05*100
598.05

83.52 %

REPORTED NET PROFIT

HISTORICAL SHARE PRICE RECORDS OF HDFC BANK AT STRATING DAY

OF FINANCIAL YEARS FROM 2008 to 2013.

Growth of HDFC BANK share price

GROWTH OF HDFC BANK IN LAST 5 YEARS (2008 to 2013):
GROWTH =

2350 774.25*100
774.25

203.5%

REPORTED NET PROFIT

30

PERFORMANCE OF INFOSYS TECHNOLOGIES FROM 1ST September2012 TO

31st January 2013.
Symbol
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY

Date

Open

High

Low Price

Price
Price
2-Sep-12
2385
2385
5-Sep-12 2293.7
2293.7
6-Sep-12 2253.9
2320
7-Sep-12 2297.9
2314.3
8-Sep-12
2300
2354
9-Sep-12 2328.1
2328.1
12-Sep-12
2208 2217.35
13-Sep-12 2223.1
2259.7
14-Sep-12
2251
2366.9
15-Sep-12
2378
2428.5
16-Sep-12 2457.9
2457.9
19-Sep-12
2399
2411.6
20-Sep-12
2377
2440
21-Sep-12
2440
2454.9
22-Sep-12
2384
2411.8
23-Sep-12
2328
2389.8
26-Sep-12
2345
2365
27-Sep-12 2377.2 2468.65
28-Sep-12
2480
2540
29-Sep-12
2482 2569.95
30-Sep-12 2531.9
2564
3-Oct-12
2490
2518
4-Oct-12 2452.2 2481.75
5-Oct-12 2457.95
2499
7-Oct-12
2560
2574.9

2275.3
2240.2
2222.25
2267.65
2299
2261
2180.65
2195.75
2249
2330
2373.6
2356.1
2375.15
2420
2336.65
2321
2301.1
2377.2
2452.5
2471.25
2508.2
2467.7
2413.6
2428.1
2487.65
31

Close

% change

Price
2319.2
2265.1
2302.55
2291.45
2338.45
2274.3
2198.45
2222.05
2351.65
2409.9
2395.15
2362.65
2436.55
2435.65
2352.6
2338.8
2355
2444.15
2470.25
2551.1
2533.05
2475.9
2438.5
2446.95
2508.7

0
-2.3327
1.653349
-0.48207
2.051103
-2.74327
-3.33509
1.073484
5.832452
2.476984
-0.61206
-1.35691
3.127844
-0.03694
-3.40977
-0.58659
0.692663
3.785563
1.067856
3.272948
-0.70754
-2.25617
-1.51056
0.346525
2.52355

INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY

10-Oct-12
11-Oct-12
12-Oct-12
13-Oct-12
14-Oct-12
17-Oct-12
18-Oct-12
19-Oct-12
20-Oct-12
21-Oct-12
24-Oct-12
25-Oct-12
26-Oct-12
28-Oct-12
31-Oct-12
1-Nov-12
2-Nov-12
3-Nov-12
4-Nov-12
8-Nov-12
9-Nov-12
11-Nov-12
14-Nov-12
15-Nov-12
16-Nov-12
17-Nov-12
18-Nov-12
21-Nov-12
22-Nov-12
23-Nov-12
24-Nov-12
25-Nov-12
28-Nov-12
29-Nov-12
30-Nov-12
1-Dec-12
2-Dec-12
5-Dec-12
7-Dec-12
8-Dec-12
9-Dec-12
12-Dec-12
13-Dec-12
14-Dec-12
15-Dec-12
16-Dec-12

2545
2593.4
2595
2719
2711.1
2761.1
2699.9
2722
2692
2747.55
2750
2811
2861.9
2921
2856
2840
2820
2834
2845
2815.05
2845
2610.7
2810.15
2800.1
2795
2768.3
2731.05
2720
2600
2675
2641
2655
2620.05
2622.2
2581
2674
2651
2690
2705
2747
2668.15
2719.9
2731.3
2750
2726.3
2695

2600.9
2595
2688
2729
2756.7
2764.9
2725
2735
2757
2749
2774.8
2899
2869.95
2971.35
2897.75
2874.1
2853.9
2842
2850.9
2848
2867.25
2807.7
2832.4
2820
2804
2789
2764.45
2734.85
2764.9
2689.55
2684
2655
2649.9
2628.05
2625
2690.85
2715.45
2717.75
2772.4
2758
2739.8
2756
2764.9
2767.25
2734.35
2788.8

2528.4
2490
2595
2685
2686.3
2720.2
2687.7
2701.1
2687.55
2707
2741.2
2811
2831.4
2845.05
2856
2818
2817.4
2767.2
2791.55
2790.85
2825
2610.7
2798
2781.55
2758.3
2732.9
2720
2626.3
2600
2617.35
2586.6
2591
2612.45
2581.25
2561
2630.6
2647.9
2675.2
2684.05
2696.1
2660.2
2697.8
2708.7
2725
2665
2691.95
32

2589.95
2504.55
2679.35
2696.7
2743.75
2746.55
2701.55
2727.75
2747.55
2722.65
2767.3
2858.7
2838.65
2858.65
2877.55
2836.6
2834.4
2802.1
2825.95
2842.1
2835.3
2775.7
2808.8
2798.3
2778.3
2753.5
2740.8
2670.1
2724
2652.65
2666.2
2599.7
2636.15
2597.95
2606.85
2655.35
2694.15
2701.15
2758.95
2723.45
2710.3
2740.25
2752.2
2740.25
2716.35
2724.5

3.238729
-3.29736
6.979298
0.647545
1.744725
0.10205
-1.63842
0.969814
0.725873
-0.90626
1.639946
3.302858
-0.70137
0.70456
0.661151
-1.42309
-0.07756
-1.13957
0.851147
0.571489
-0.23926
-2.10207
1.192492
-0.37383
-0.71472
-0.89263
-0.46123
-2.57954
2.018651
-2.61931
0.51081
-2.49419
1.402085
-1.44908
0.342578
1.860483
1.461201
0.259822
2.139829
-1.28672
-0.48284
1.105044
0.436092
-0.4342
-0.87218
0.300035

INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY
INFY

19-Dec-12
2690
20-Dec-12
2690
21-Dec-12
2719
22-Dec-12
2650
23-Dec-12
2740
26-Dec-12
2691
27-Dec-12
2765
28-Dec-12
2769
29-Dec-12
2758
30-Dec-12
2744
2-Jan-13 2759.2
3-Jan-13 2824.1
4-Jan-13
2845
5-Jan-13 2839.2
6-Jan-13
2838
7-Jan-13 2838.9
9-Jan-13 2847.5
10-Jan-13
2870
11-Jan-13
2868
12-Jan-13
2750
13-Jan-13
2618
16-Jan-13 2581.25
17-Jan-13
2650
18-Jan-13
2644
19-Jan-13
2616
20-Jan-13
2596
23-Jan-13
2590
24-Jan-13
2618
25-Jan-13
2635
27-Jan-13
2702
30-Jan-13 2698.9
31-Jan-13
2712

2703.55
2698.15
2754.8
2748
2740
2787
2799
2804
2774.9
2775
2816.65
2886.95
2875
2876
2867.6
2851.5
2866.3
2875.4
2894.9
2750
2619
2644
2672.8
2644
2622.8
2609.7
2615.5
2639.6
2675
2735
2725.2
2754.65

2655.8
2651.1
2680
2650
2683.25
2691
2736.25
2751.55
2731.05
2741.5
2742
2820
2841.05
2831.45
2811.1
2828.05
2817.2
2850.2
2813
2578.05
2552.25
2579.1
2633.85
2585
2576.6
2576.3
2589
2595
2625
2686.2
2690
2706

2676.4
2668.75
2743
2720.85
2694.75
2775.85
2759.4
2782
2742.1
2767.65
2808.95
2864.3
2854.4
2840.15
2832.15
2835.2
2836.55
2863.6
2826.6
2588.25
2584.2
2640.15
2662.05
2612.05
2594.7
2588.8
2600.3
2620.8
2665.8
2725
2712.3
2746

-1.76546
-0.28583
2.782201
-0.80751
-0.95926
3.009556
-0.59261
0.819019
-1.43422
0.931768
1.492241
1.970487
-0.34563
-0.49923
-0.28168
0.107692
0.047616
0.953623
-1.29208
-8.43239
-0.15648
2.16508
0.829498
-1.87825
-0.66423
-0.22739
0.444221
0.788371
1.717033
2.220722
-0.46606
1.242488

Daily performance of Infosys from 1st September 2011 to 31st January 2012.

33

Interpretation: the above table indicating performance of Infosys from 1st September
2012 to 31st January 2013. The reason for taking above data is to analyze impact of
financial results for two consecutive (2nd and 3rd) quarters for financial year 20122013., and impact of other factors and dollar impact. While announcing before month
of 2nd
Quarter results, we can see growth of 8% i.e. (2300 to 2500) and on 11th October due
to results impact stock participated in bullish rally and increased nearly 7% in single
day and closes at 2700 levels. After 2nd quarter results Infosys has performed with
little bullish zone till 11th January 2013 and recorded a high price of 2894.9 which is
closed to 2900. On the day of third quarter results stock faces selling pressure and
stock moved to 8% negative and recorded 2550 levels as low. Infosys in negative rally
because of international markets and dollar price moved 50.26 to 53.85, where rupee
is trading in week position at that time. and market data announced that arbitrage
trading system applied in INFOSYS ADRs by FIIs. When pointing out January 2013
performance of the company lot of volatility happened during the period.
3rd Quarter Results of Infosys:
Infosys , the second largest software services exporter, reported a better than street
expected numbers in the third quarter of FY13 but the company disappointed with its
dollar revenue guidance for FY13.
The company posted a net profit of Rs 2,372 crore in the third quarter, a growth of
24.5% as compared to Rs 1906 crore in the previous quarter.

34

Its revenues moved up 14.8% to Rs 9,298 crore from Rs 8,099 crore, quarter-onquarter.
MEDIA ANALYSIS ON RESULTS: CNBC poll expected net profit is 2322 crores,
and actual net profit was 2372 crores. Here numbers are better than expectations but
only the reason is stock has already participated in positive rally in last four months
and speculated in international markets. When considering other strong reason
company disappointed with dollar revenue.
Based on this information stock price speculates on results day.

PERFORMANCE OF WIPRO FROM 1ST September 2012 TO 31st January

2013.
Symbol

Date

OPEN

HIGH

LOW

CLOSE

%
change

WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO

2-Sep-12
5-Sep-12
6-Sep-12
7-Sep-12
8-Sep-12
9-Sep-12
12-Sep-12
13-Sep-12
14-Sep-12
15-Sep-12
16-Sep-12
19-Sep-12
20-Sep-12
21-Sep-12
22-Sep-12
23-Sep-12
26-Sep-12
27-Sep-12
28-Sep-12

345.1
330
320
326.6
330.05
338.25
329
327.8
330.1
346.1
349.2
339
341.95
351.9
350.75
338
340.35
343.3
351.4

352.95
333.3
330
330.95
344
342
332.3
333.6
346.4
350
354.35
344.8
355
359.95
352.7
348.9
346.5
353.8
358.4
35

328.6
320
312.3
326.1
330.05
332.3
323
323.35
326.35
339
337.75
337
340.2
351.1
337.15
334.3
337.2
343
345.15

334.35
321.75
323.05
329.55
338.15
338.35
325.2
329.1
342.4
348.2
338.75
341
350.95
356.65
340.35
339.5
340.05
348.2
347.55

0
-3.76851
0.40404
2.012072
2.609619
0.059145
-3.88651
1.199262
4.041325
1.693925
-2.71396
0.664207
2.917889
1.624163
-4.57031
-0.24974
0.162003
2.396706
-0.18667

WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO

29-Sep-12
30-Sep-12
3-Oct-12
4-Oct-12
5-Oct-12
7-Oct-12
10-Oct-12
11-Oct-12
12-Oct-12
13-Oct-12
14-Oct-12
17-Oct-12
18-Oct-12
19-Oct-12
20-Oct-12
21-Oct-12
24-Oct-12
25-Oct-12
26-Oct-12
28-Oct-12
31-Oct-12
1-Nov-12
2-Nov-12
3-Nov-12
4-Nov-12
8-Nov-12
9-Nov-12
11-Nov-12
14-Nov-12
15-Nov-12
16-Nov-12
17-Nov-12
18-Nov-12
21-Nov-12
22-Nov-12
23-Nov-12
24-Nov-12
25-Nov-12
28-Nov-12
29-Nov-12
30-Nov-12
1-Dec-12
2-Dec-12
5-Dec-12
7-Dec-12
8-Dec-12

346
348.5
335
326.55
336.05
338
335.05
352.3
347.05
353
346.7
364.05
348.65
346.8
352.25
356.4
357.05
360.55
370.1
376.55
375
367.75
369.95
373.85
373.2
368.35
369.3
374
382.35
384.95
382
371.55
365.1
370
370.1
373.95
363.3
367
374.8
373.9
373.9
384
384.85
390.1
390
400.1

350
352.8
336.75
338
341.85
345
350
353.95
358.7
355
364.95
366.4
351.7
358.9
355.9
358
365
381.95
374.5
390
385
374.9
377
373.85
377
373.5
380.5
387.3
389.45
386.9
384.1
378.1
377
374.5
380
374.8
374.4
373
376.8
376
382
394
400
397
405.6
415.25
36

342.25
335.1
323.6
325.35
326
330
334.3
338.65
347.05
348.5
346.7
354.75
342.7
346.8
347
350.25
355.7
354.2
367.15
365.65
363.4
364.95
364.55
366.75
368.5
367.2
369.3
370.45
382.35
382.2
368.25
363.1
360.05
365.65
368.25
361.25
361.9
365
369.2
370.55
371.8
381.65
379.05
386.55
388
398.55

347.6
340.8
330.2
333.55
327.95
333.8
348.9
341.7
350.55
349.5
363.3
356.8
346.05
357.6
354.55
354.05
358.1
372.15
368.7
374.05
366.6
372.05
374.15
370.8
371.85
369.3
376.5
382.1
387.4
383.75
374.15
367.65
374
370.1
377.8
365.9
370.65
369.95
372.05
373.7
377.2
386.45
391.8
390.15
404.1
412.75

0.014386
-1.95627
-3.11033
1.014537
-1.67891
1.783809
4.523667
-2.06363
2.589991
-0.29953
3.948498
-1.78915
-3.01289
3.337668
-0.85291
-0.14102
1.143906
3.923485
-0.92705
1.451044
-1.99171
1.486634
0.56444
-0.89536
0.283172
-0.68576
1.949634
1.487384
1.387071
-0.94218
-2.50163
-1.73727
1.727186
-1.04278
2.080519
-3.14981
1.298169
-0.18886
0.567644
0.443489
0.93658
2.45228
1.384396
-0.42113
3.575548
2.140559

WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO
WIPRO

9-Dec-12
12-Dec-12
13-Dec-12
14-Dec-12
15-Dec-12
16-Dec-12
19-Dec-12
20-Dec-12
21-Dec-12
22-Dec-12
23-Dec-12
26-Dec-12
27-Dec-12
28-Dec-12
29-Dec-12
30-Dec-12
2-Jan-13
3-Jan-13
4-Jan-13
5-Jan-13
6-Jan-13
7-Jan-13
9-Jan-13
10-Jan-13
11-Jan-13
12-Jan-13
13-Jan-13
16-Jan-13
17-Jan-13
18-Jan-13
19-Jan-13
20-Jan-13
23-Jan-13
24-Jan-13
25-Jan-13
27-Jan-13
30-Jan-13
31-Jan-13

408.5
405.2
413.7
410.05
415
402.35
399.05
402.2
402.9
396.05
401
403.15
408
405.35
396
395.2
399
402.35
418.7
415.7
412.95
405.85
407
404.05
403.75
390
394.4
398.5
406
410.1
406
415
410.75
415.75
419.05
421
415.1
410.55

412.9
419.8
420.9
417.85
418
409.4
405.15
407
411.9
403.1
409
411.8
411.7
410.75
400.4
402.5
401.9
417.9
425
422.9
412.95
408.65
408.5
407.6
406.95
397.45
404.85
408.8
419
413.9
409.4
424.9
420.5
422
422.9
422
422
415.5

PERFORMANE GRAPH OF WIPRO

37

401.55
402.7
405.25
409.4
402.5
396.35
392.3
392
393.4
393.5
395.75
403.15
404
394.25
394.5
395.2
395.4
401.35
415.35
411.2
403.1
405.85
400.05
401.9
399.4
382.5
390.7
397.55
405.9
402.55
399.25
410.1
410.75
415.1
416
415.7
408
410.1

404.95
414.75
412.6
415.55
406.6
403.65
404
396.15
407.15
397.55
406
406.3
406.85
397.05
398.35
398.7
399
416.5
418.25
414.95
405.75
406.85
401.15
403.55
401.3
391.45
401
407.45
415.15
404.1
404.15
413.75
415.8
419.05
419.55
418
409.8
413.9

-1.88976
2.420052
-0.51838
0.714978
-2.15377
-0.72553
0.086709
-1.94307
2.776726
-2.35785
2.125519
0.073892
0.135368
-2.40875
0.327415
0.087862
0.075245
4.385965
0.420168
-0.789
-2.21713
0.271103
-1.40101
0.59828
-0.55755
-2.45452
2.439647
1.608479
1.889802
-2.66169
0.012373
2.375356
0.495468
0.781626
0.119318
-0.36944
-1.96172
1.000488

INTERPRETATION: The above tabulation and chart indicating performance of

Wipro for the given period. In this study analyzing briefly about internal and external
factors. On 12th October 2012, when Infosys announced its final quarter and financial
ending year results, the bullish impact spread to complete IT sector on that day. And
WIPRO also increased close to 5% on that day.
When market leaders participates any issue, the impact will be affects on related
sectors as well as other sectors also.
WIPRO RESULTS: Money control Bureau
Wipro reported a little-higher-than expected results for the third quarter, helped by the
rupee depreciation and outsourcing demand, sending its shares up 3% in opening
trade. The software services exporter's consolidated net profit for October-December
rose 10% year-on-year to Rs 1,456 crore. But it too warned that the uncertainties in
the global economic environment remained a concern.
The Bangalore-based company's revenue in the third quarter was up 28% from a year
ago to Rs 9,997 crore.
Analysts on average had expected Wipro to report a net profit of Rs 1,450 crore on
revenue of Rs 9,765 crore, according to a CNBC-TV18 poll.
"We continue to execute on our strategy and propel the business towards a higher
growth trajectory. The overall macroeconomic sentiments continue to be uncertain
and we are monitoring it closely," Chairman Azim Premji said on Friday.
38

The company's revenue from IT services, which accounts for 72% of its total topline,
rose 28% year-on-year to Rs 7,608 crore. In US dollar terms, IT services revenue rose
12% from a year ago and 2.2% sequentially to USD 1.51 billion.
Wipro now expects IT services revenue in USD 1.52-1.55 billion range in the fourth
quarter, up 1-3% quarter-on-quarter. The guidance is based on dollar-rupee exchange
rate of 53.75.
After announcement of results WIPRO participated in positive rally and shown
growth of 2.5%. For the given period Wipro performance was conservative. And
when analyzed about historical performance of WIPRO FY2008 to FY2013 also
conservative.

PERFORMANCE OF TCS FROM 1ST September 2012 TO 31st January 2013.

Symbol
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS

Date
OPEN
HIGH
LOW
CLOSE %CHANGE
2-Sep-12
1073 1074.75
1012
1022.1
0
5-Sep-12 1015.8
1033.2
998.45
1027.7
0.547892
6-Sep-12
1018
1042
1005
1033.9
0.603289
7-Sep-12 1034.1
1050
1025
1031
-0.28049
8-Sep-12
1033 1054.95
1029 1036.05
0.489816
9-Sep-12
1040
1051.6 1010.65 1016.05
-1.93041
12-Sep-12
1000 1003.85
978.65
985.7
-2.98706
13-Sep-12
997.8
1024
988.75
993.75
0.816679
39

TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS

14-Sep-12
1001
15-Sep-12
1028
16-Sep-12
1048
19-Sep-12 1021.5
20-Sep-12 1022.1
21-Sep-12 1067.95
22-Sep-12
1023
23-Sep-12
988
26-Sep-12
996
27-Sep-12 1013.8
28-Sep-12 1048.5
29-Sep-12 1043.25
30-Sep-12 1049.9
3-Oct-12
1020
4-Oct-12 1038.4
5-Oct-12 1054.5
7-Oct-12 1075.1
10-Oct-12
1048
11-Oct-12
1075
12-Oct-12
1066
13-Oct-12 1096.5
14-Oct-12 1089.4
17-Oct-12
1151.5
18-Oct-12
1062
19-Oct-12
1043
20-Oct-12
1036
21-Oct-12 1054.9
24-Oct-12
1060
25-Oct-12
1089
26-Oct-12
1105
28-Oct-12
1129
31-Oct-12
1120
1-Nov-12
1108
2-Nov-12 1101.25
3-Nov-12 1097.8
4-Nov-12
1121
8-Nov-12
1096
9-Nov-12
1110
11-Nov-12
1110
14-Nov-12
1140
15-Nov-12 1125.05
16-Nov-12
1126
17-Nov-12
1115
18-Nov-12 1105.75
21-Nov-12
1085
22-Nov-12 1068.9

1029
1045.8
1072.4
1032.5
1064
1067.95
1034
1015
1008
1045
1064.7
1068
1064
1049.9
1059
1063
1077.8
1074
1078
1089.4
1104.95
1140.75
1154
1064.25
1054.4
1047
1060
1092.3
1107
1110
1139.1
1132
1123
1121.85
1109.4
1125
1114.8
1146
1141
1156
1138.95
1132.8
1123.5
1109.8
1088.3
1095

993.75
1010
1021.3
1012.5
1022.1
1036.9
986.2
982.25
969
1006
1037
1035.7
1033.1
1015.3
1029.1
1041
1037.5
1048
1034.5
1062
1080.1
1088.9
1111.3
1020.5
1035.2
1030.3
1043
1059.5
1071.45
1093.35
1111
1112
1096.25
1100
1087
1087.2
1096
1106.3
1107.25
1124.5
1120
1105.2
1107.6
1076.3
1060.1
1057
40

1015.1
1041.75
1027.75
1018.05
1057.95
1043.5
994.4
990.3
996.95
1040.55
1047.9
1061.45
1037.3
1043.3
1045.95
1043.55
1048.55
1064.7
1040.85
1079.05
1092.75
1134.25
1120.25
1033.55
1048.95
1044.9
1049.85
1079.75
1098.65
1095.9
1121.5
1115.8
1108.45
1106.85
1105
1099.8
1105.25
1122.95
1131
1128.4
1124.4
1117.25
1115.15
1086.6
1067.2
1081.85

2.148428
2.625357
-1.34389
-0.94381
3.919257
-1.36585
-4.70532
-0.41231
0.671514
4.373339
0.706357
1.293062
-2.27519
0.578425
0.254002
-0.22946
0.479134
1.540222
-2.24007
3.670077
1.269635
3.797758
-1.2343
-7.73934
1.49001
-0.3861
0.47373
2.848026
1.750405
-0.25031
2.33598
-0.50825
-0.65872
-0.14435
-0.16714
-0.47059
0.495545
1.601448
0.716862
-0.22989
-0.35448
-0.63589
-0.18796
-2.56019
-1.78539
1.372751

TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS

23-Nov-12 1081.95
24-Nov-12
1062
25-Nov-12
1085
28-Nov-12 1077.95
29-Nov-12
1093
30-Nov-12 1081.15
1-Dec-12
1140
2-Dec-12 1134.85
5-Dec-12
1172.5
7-Dec-12
1180
8-Dec-12
1170
9-Dec-12
1161
12-Dec-12
1176

1081.95
1096.4
1087.9
1096
1105.9
1122.95
1148.55
1185
1183.9
1192.9
1189
1182.8
1190

1041
1045
1057.1
1074
1086.2
1081.15
1126.2
1129.6
1162.55
1173.6
1167.15
1161
1155.1

1062.3
1091.8
1063.9
1088.5
1093.3
1115.55
1134.8
1178
1180.95
1179.55
1177.6
1172.4
1180.35

-1.80709
2.776993
-2.55541
2.312247
0.440974
2.035123
1.725606
3.806838
0.250424
-0.11855
-0.16532
-0.44158
0.678096

TCS
TCS
TCS
TCS

13-Dec-12
14-Dec-12
15-Dec-12
16-Dec-12

1175
1180.5
1179.7
1176.55

1196.9
1189
1189.9
1182.55

1166.65
1170
1154.6
1132.3

1178.7
1182.45
1182.5
1146.3

-0.13979
0.318147
0.004229
-3.06131

TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS
TCS

19-Dec-12
20-Dec-12
21-Dec-12
22-Dec-12
23-Dec-12
26-Dec-12
27-Dec-12
28-Dec-12
29-Dec-12
30-Dec-12
2-Jan-13
3-Jan-13
4-Jan-13
5-Jan-13
6-Jan-13
7-Jan-13
9-Jan-13
10-Jan-13
11-Jan-13
12-Jan-13
13-Jan-13
16-Jan-13
17-Jan-13
18-Jan-13
19-Jan-13
20-Jan-13
23-Jan-13
24-Jan-13
25-Jan-13

1139
1145.35
1150
1152
1151
1157.15
1185.4
1178.7
1163.5
1178
1161
1183.25
1204.9
1172.8
1166
1170
1171
1175
1171.4
1101
1097.15
1084
1119.9
1080
1087
1079.95
1086
1088
1094.9

1157.4
1151.1
1166
1163.85
1162
1190.2
1190
1183.55
1178.1
1182.5
1185.95
1209.9
1205
1185
1188.35
1178.75
1179.7
1185.5
1175
1115
1103.35
1114
1124.7
1096.3
1088.9
1090.95
1091.45
1095
1109.95

1114.4
1128.25
1122.45
1134.25
1139.1
1153.5
1170
1165.9
1159.5
1156.5
1153
1180
1169.3
1167.35
1156.8
1170
1165.25
1158.5
1133.15
1068.65
1073
1078.9
1094
1045.3
1065.4
1073
1074.15
1078
1091.05

1143.65
1133.35
1158.7
1151.7
1157.15
1188.4
1179.45
1169.2
1165.7
1160.65
1178.6
1197.6
1173
1172
1169.4
1172.5
1171.35
1165.4
1137
1089.5
1085.75
1109.4
1103.95
1076.15
1075.55
1079.5
1077.7
1088.7
1098

-0.23118
-0.90063
2.236732
-0.60413
0.473214
2.700601
-0.75311
-0.86905
-0.29935
-0.43322
1.546547
1.612082
-2.05411
-0.08525
-0.22184
0.265093
-0.09808
-0.50796
-2.43693
-4.17766
-0.34419
2.178218
-0.49126
-2.51823
-0.05575
0.367254
-0.16674
1.020692
0.85423

41

TCS
TCS

27-Jan-13
30-Jan-13

1105
1102.5

1120.55
1118.95

1100.1
1100.75

1108.75
1111.75

0.979053
0.270575

TCS

31-Jan-13

1113

1135.9

1113

1132.4

1.857432

PERFORMACNE OF TCS

DATA INTERPRETATION:
Above data indicating performance of TCS for the given period. Graph has taken with
daily closing prices of the stock. And one can easily understand if any investments,
investing for short term, he has to ready to bear volatility. Other than financial results
few times changes in management and business risk also become a cause to fall a
stock. IT sector has international exposure when major fluctuation happens in
currency (dollar) it may be a cause for volatility. For the given period TCS has given
12.5 % returns. In last 5 financial years also TCS has given better returns when
compare to all competitive IT stocks.

42

TCS RESULTS:
Money control Bureau
Tata Consultancy Services reported 23% year-on-year rise in third quarter
consolidated net profit at Rs 2,887 crore, helped by continued demand for outsourcing
services and said the deal pipeline remains strong.
Revenue for October-December quarter jumped 37% from a year ago to Rs 13,204
crore, India's top software services exporter said on Tuesday
Analysts on average had expected TCS net profit at Rs 2,893 crore on revenue of Rs
13,230 crore, according to CNBC-TV18 poll.
"While technology budgets are still being set for the next fiscal (year), there is little
doubt that technology is a key resource to help global businesses optimise their
operations and fuel growth in the current economic climate," said N Chandrasekaran,
CEO and MD.
TCS' operating margin in the third quarter was up 218 basis points at 29.2%.
"We continue to focus on managing our operations optimally in the face of increased
external volatility. We have increased operating margins significantly by taking the
benefits of growth, exchange movements and by keeping a strong focus on cost
management," said S Mahalingam, CFO.
While the rupee depreciation aided margin expansion, net earnings were hurt due to
foreign exchange losses.
TCS said it had a forex loss of Rs 300.81 crore in the third quarter, versus a gain of Rs
52.16 crore in the year ago quarter.
"The level of currency and market volatility has only risen in the past three months
and we are adapting our strategies accordingly," said CFO S Mahalingam.
The global economic uncertainties led by the euro zone debt crisis are a major worry
for Indian software service providers. TCS, however, said it saw growth across
regions, with Europe "leading the growth story among mature markets."
The company said Europe business grew 18.1%, followed by US at 13.3% and UK
grew by 9.5%, in the third quarter. Latin America revenue grew 18.6%, APAC (Asia-

43

Pacific) region saw a 15.7% growth, while revenues from India, were up 14.8%, it
said.
"All industry sectors have shown strong growth with all sectors growing at more than
double digits except telecom," TCS said.
TCS added 40 new clients in the third quarter and signed 10 large deals during the
quarter. The number of USD 100 million clients rose to 14 from 12, it said.
TCS net added 11,981 employees in Oct-Dec and had 226,751 employees as of Dec
31. It plans to add 15,000 employees in the current quarter.
The company said attrition rate dropped to 12.8% in the quarter. Attrition in IT
services business was at 11.7%, while BPO (business process outsourcing) attrition
was at 22.6%, it said

PERFORMACNE OF ICICI BANK FROM 1ST September 2012 TO 31st January

2013
Symbol
Date
Open Price High Price Low Price Close Price % change
ICICIBANK
2-Sep-12
891.5
899.7
876.15
887.15
0
ICICIBANK
5-Sep-12
877
889.2
865.4
883.2
-0.44525
ICICIBANK
6-Sep-12
875
896.25
855.3
889.25
0.685009
ICICIBANK
7-Sep-12
894
906.55
890.1
897.35
0.91088
ICICIBANK
8-Sep-12
901.9
928
884
918.95
2.407088
ICICIBANK
9-Sep-12
925.75
925.75
893.7
896.8
-2.41036
ICICIBANK
12-Sep-12
880.3
884
853.35
862.35
-3.84144
ICICIBANK
13-Sep-12
872.5
880.35
842
852.4
-1.15382
ICICIBANK
14-Sep-12
856.85
868.65
840.05
864.05
1.366729
ICICIBANK
15-Sep-12
875
882.4
850.9
876.2
1.406169
ICICIBANK
16-Sep-12
891
894.95
871
883.9
0.878795
ICICIBANK
19-Sep-12
877.7
877.7
856
859.5
-2.76049
ICICIBANK
20-Sep-12
862.25
887.8
860.1
882.35
2.658522
ICICIBANK
21-Sep-12
886.9
904.8
877.1
901.2
2.13634
ICICIBANK
22-Sep-12
880.1
883.6
853.75
862.35
-4.31092
ICICIBANK
23-Sep-12
848.3
865.9
838.35
843.75
-2.1569
ICICIBANK
26-Sep-12
844
874.55
833
858.05
1.694815
ICICIBANK
27-Sep-12
874.5
897.35
873.65
886.05
3.263213
ICICIBANK
28-Sep-12
890.5
892
857.6
868.75
-1.95249
ICICIBANK
29-Sep-12
862.15
895.7
858.1
890.7
2.526619
ICICIBANK
30-Sep-12
889.2
889.2
866
875.4
-1.71775
ICICIBANK
3-Oct-12
860
860
836.05
839.1
-4.14668
ICICIBANK
4-Oct-12
834
844.5
791.15
800.95
-4.54654
44

ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK

5-Oct-12
7-Oct-12
10-Oct-12
11-Oct-12
12-Oct-12
13-Oct-12
14-Oct-12
17-Oct-12
18-Oct-12
19-Oct-12
20-Oct-12
21-Oct-12
24-Oct-12
25-Oct-12
26-Oct-12
28-Oct-12
31-Oct-12
1-Nov-12
2-Nov-12
3-Nov-12
4-Nov-12
8-Nov-12
9-Nov-12
11-Nov-12
14-Nov-12
15-Nov-12
16-Nov-12
17-Nov-12
18-Nov-12
21-Nov-12
22-Nov-12
23-Nov-12
24-Nov-12
25-Nov-12
28-Nov-12
29-Nov-12
30-Nov-12
1-Dec-12
2-Dec-12
5-Dec-12
7-Dec-12
8-Dec-12
9-Dec-12
12-Dec-12
13-Dec-12
14-Dec-12

801
817.1
824.9
852
840
875.5
877
895
888
888
885.35
880
884.8
879
885
911.65
935
917.95
885.7
880
889.6
884.5
886.75
856.25
837.9
819
787
790.5
770
762.9
740.05
739.95
726
725.3
730
750.5
724
754
765.3
786
784
758.5
731
744
700
700

804
831.6
847.8
861
863.35
888.8
900
903.1
888.05
907.9
886.95
883.3
897.5
891.9
885
935
953.65
923.5
903.95
891.6
892
887
889.35
857
839.45
822.95
801
798.85
773.25
766
752
740
736
734.65
753.75
756
734.25
776
792
790.3
785.9
765.65
741.95
744
712.5
717
45

761.4
815
816.15
829.1
833.75
866
872.1
887.1
866.05
888
870.15
866.55
861.05
852.65
865
911.5
921.55
892.5
859.2
869.05
879.25
870.65
857.3
816.7
813.75
782.75
773.6
774.2
748
725.9
734.2
710
719
712.65
728.05
722.65
704.9
753.1
758.1
771.7
764.6
739.05
722.1
704.1
690.15
693.4

779.25
824.45
842.65
832.5
859.7
879.85
890.4
898.85
876.5
904.15
878.05
870.55
868.45
878.4
871.7
933.35
931.15
895
885
878.05
884.3
881.3
862.15
821
822.5
789.85
788.85
778.2
770.1
731.6
745.45
726.7
730.1
718.2
749.85
733.95
712.45
762.15
787.7
779.55
767.85
744.3
731.15
707.1
706.45
704.4

-2.70928
5.800449
2.207532
-1.20453
3.267267
2.343841
1.199068
0.949012
-2.48651
3.154592
-2.88669
-0.85417
-0.24123
1.145719
-0.76275
7.072387
-0.23571
-3.8823
-1.11732
-0.78531
0.711805
-0.33925
-2.17293
-4.77295
0.182704
-3.9696
-0.12661
-1.35007
-1.04086
-4.99935
1.893111
-2.51526
0.467868
-1.62991
4.40685
-2.12042
-2.92935
6.975928
3.352358
-1.03466
-1.50087
-3.06701
-1.76676
-3.28934
-0.09192
-0.29018

ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK
ICICIBANK

15-Dec-12
16-Dec-12
19-Dec-12
20-Dec-12
21-Dec-12
22-Dec-12
23-Dec-12
26-Dec-12
27-Dec-12
28-Dec-12
29-Dec-12
30-Dec-12
2-Jan-13
3-Jan-13
4-Jan-13
5-Jan-13
6-Jan-13
7-Jan-13
9-Jan-13
10-Jan-13
11-Jan-13
12-Jan-13
13-Jan-13
16-Jan-13
17-Jan-13
18-Jan-13
19-Jan-13
20-Jan-13
23-Jan-13
24-Jan-13
25-Jan-13
27-Jan-13
30-Jan-13
31-Jan-13

698
699.2
672
662
675.9
690
728.4
721
727.1
720.7
691.4
690.35
690.15
705
733.4
745
742
748.5
746
750.7
778.1
779.9
787.8
782
800
779.8
780.5
814
843
860
891.8
888
877
859.75

705.9
715
672
671
709
741
734.4
734.7
734
720.8
701
699.8
699.5
729
749
756.8
763
748.5
755
779
790
796.8
809.7
796.4
804.4
781.95
801.9
851.6
871.6
895
895
890.5
881.25
906.85

PERFORMANCE OF ICICI BANK

46

689.05
664.85
641
648.15
671.65
683.6
714.3
719.05
721.35
694.35
677.2
680.6
685.1
705
730.4
739
728
742.85
731
750.05
773.15
774.1
780.8
777.3
783.4
762
780.5
814
843
847.05
869.3
864.15
848
858.95

698.6
676
657.2
653.4
702.35
728.15
721.75
729.6
726.1
697.35
685.95
684.65
696.55
725.8
743.1
748.1
751.7
745.2
747.8
774.5
780.15
781.4
789.45
791.6
785.55
769.65
797.2
842.45
856.75
888.05
880.05
887.95
852.2
902.15

-0.8234
-3.23504
-2.78107
-0.57821
7.491582
3.673382
-0.87894
1.087634
-0.47971
-3.95951
-1.63476
-0.18952
1.738114
4.199268
2.383577
0.672857
0.481219
-0.86471
0.3489
3.570473
0.729503
0.160226
1.030202
0.272342
-0.76427
-2.02406
3.579549
5.676116
1.69743
3.653341
-0.90085
0.897676
-4.02613
5.8613

Data interpretation: The above chart indicating performance of ICICI BANK for
the given period. Inflation and interest rates plays major role in banking industry. If
government fails to control inflation, its highly impossible to control interest rates
also. According to RBI data in last three months (January, February & March)
inflation numbers increased by 21.18% because of hike in daily commodity prices.
ICICI bank closed in 5% negative in the above data when compare to starting day to
ending day.
ICICI BANK RESULTS
India's largest private sector lender ICICI Bank 's third quarter (Oct-Dec) net profit
rose to forecast-beating 20% year-on-year to Rs 1,728 crore on the back of robust loan
growth. Net interest income or the difference between interests earned and paid out
increased more than 17% y-o-y to Rs 2,712 crore.
"We are on the growth path," Chanda Kochhar, Managing Director and Chief
Executive Officer, ICICI Bank said in a conference call.
"We have seen diversified growth in this quarter. Corporate loan book has grown well
both on domestic and international fronts. It was mostly in the form of working
capital loans. However, the retail rate of growth will be higher in the coming quarters.
Residential housing projects are moving well."
CNBC-TV18 poll saw net profit at Rs 1,621 crore (13% up y-o-y) and net interest
income of Rs 2,650 crore (up 15% y-o-y).
47

The bank's loan book expanded 19% y-o-y to around Rs 2.46 lakh crore in the three
months period. In between September 1 and January 31, the lender has disbursed
around Rs 30,000 crore loans to companies and individuals.
Currently, retail loans have higher share of 33% out of the entire loan book as against
26% in corporates, 28% in overseas business and 13% in SME and agriculture loans.
ICICI Bank aims to attain 18% y-o-y credit growth for FY13.
During the quarter, the bank improved its asset quality with the gross non-performing
asset (NPA) ratio stood at 3.82% compared with 4.14% a quarter back. The net NPA
ratio too fell from 0.93% to 0.83% sequentially. Consequently, provisions declined by
27% y-o-y to Rs 341 crore.
"Apart from the ongoing restructuring plans we are not expecting any surprise either
with NPAs or restructuring," said Kochhar adding that her bank would retain a net
interest margin (NIM) of 2.7%. It has improved its NIM from 2.6% to 2.7% quarteron-quarter.
The net restructured assets stood at Rs 3,070 crore. During the quarter, the lender
restructured assets worth Rs 500 crore. Its power sector exposure stood around 7% of
the total loan book (around Rs 17,200 crore). However, the bank did not disclose its
credit exposure to GTL Infrastructure, the company which is negotiating debt
restructuring with 25 lenders.
Due to the higher cost of deposits, the bank tried to access cheap source of funds by
raising its share of current account and savings account (CASA) to total deposits.
CASA ratio increased from 42.1% in Q2 to 43.6% in Q3. Total deposits grew nearly
20% y-o-y to Rs 2.61 lakh crore.
In ICICI Bank CASA offers 0-4% interest rates. This is much lower than the rates
offered by their term deposit schemes.
"We are reducing our focus on wholesale deposits, which currently forms 35% of total
deposits. It was 55% of total deposits two years back," Kochhar said.
For the nine months ended December 31, the bank posted a consolidated net profit of
29% to Rs 5,833 crore.
ICICI Bank shares on Tuesday shot up nearly 6% to close the day at Rs Rs 902 on the
NSE

48

PERFORMANCE OF HDFC BANK

Symbol

Date

OPEN

HIGH

LOW

CLOSE

%
CHANGE

HDFCBANK
HDFCBANK
HDFCBANK
HDFCBANK
HDFCBANK
HDFCBANK
HDFCBANK
HDFCBANK
HDFCBANK
HDFCBANK
HDFCBANK
HDFCBANK
HDFCBANK
HDFCBANK
HDFCBANK
HDFCBANK

2-Sep-12
5-Sep-12
6-Sep-12
7-Sep-12
8-Sep-12
9-Sep-12
12-Sep-12
13-Sep-12
14-Sep-12
15-Sep-12
16-Sep-12
19-Sep-12
20-Sep-12
21-Sep-12
22-Sep-12
23-Sep-12

484
469.8
468.6
476
489.7
483.9
467
471
467.4
485.9
486.25
481.9
485
492.75
487.9
468.55

484
474
476.4
489.95
489.7
485.7
471.2
475.8
483.1
488.05
490
487
493.25
497.65
489
470
49

468
462.65
460
472.85
479.15
470.7
462.5
464
461.05
471.6
476.3
477.1
483
488.4
465.5
452.5

472.8
470.25
472.8
488.1
483.7
473.25
469.35
467.7
478.9
484.65
483.7
484.75
491.35
494.5
472.3
456.4

0
-0.5393401
0.5422648
3.2360406
-0.9014546
-2.16043
-0.8240887
-0.35155
2.3946975
1.2006682
-0.1960177
0.2170767
1.3615266
0.6410909
-4.4893832
-3.3665043

HDFCBANK 26-Sep-12
HDFCBANK 27-Sep-12
HDFCBANK 28-Sep-12
HDFCBANK 29-Sep-12
HDFCBANK 30-Sep-12
HDFCBANK
3-Oct-12
HDFCBANK
4-Oct-12
HDFCBANK
5-Oct-12
HDFCBANK
7-Oct-12
HDFCBANK
10-Oct-12
HDFCBANK
11-Oct-12
HDFCBANK
12-Oct-12
HDFCBANK
13-Oct-12
HDFCBANK
14-Oct-12
HDFCBANK
17-Oct-12
HDFCBANK
18-Oct-12
HDFCBANK
19-Oct-12
HDFCBANK
20-Oct-12
HDFCBANK
21-Oct-12
HDFCBANK
24-Oct-12
HDFCBANK
25-Oct-12
HDFCBANK
26-Oct-12
HDFCBANK
28-Oct-12
HDFCBANK
31-Oct-12
HDFCBANK
1-Nov-12
HDFCBANK
2-Nov-12
HDFCBANK
3-Nov-12
HDFCBANK
4-Nov-12
HDFCBANK
8-Nov-12
HDFCBANK
9-Nov-12
HDFCBANK 11-Nov-12
HDFCBANK 14-Nov-12
HDFCBANK 15-Nov-12
HDFCBANK 16-Nov-12
HDFCBANK 17-Nov-12
HDFCBANK 18-Nov-12
HDFCBANK 21-Nov-12
HDFCBANK 22-Nov-12
HDFCBANK 23-Nov-12
HDFCBANK 24-Nov-12
HDFCBANK 25-Nov-12
HDFCBANK 28-Nov-12
HDFCBANK 29-Nov-12
HDFCBANK 30-Nov-12
HDFCBANK
1-Dec-12
HDFCBANK
2-Dec-12

456
458
462.4
457.55
465.85
460.15
452.5
448.95
452.7
452
460.7
461.95
475
469
476.6
473.9
482.95
488
490.05
492.75
487.85
472
486
483
485.1
478.7
481
486.7
483
485
475.65
469.9
470.7
470
463.15
455.2
456
447
441.75
428.8
427.75
436
444
429.2
458.95
455.15

457.65
461.9
465.35
474.8
474.8
464.9
456
456.25
460
458
464.9
469.9
476.2
476.4
480.5
481.4
494.6
492.4
491.8
497
490.75
474.9
494.5
491.75
493
488
484.85
487.9
487.35
485.7
478.4
479.85
477.8
472
470
461.6
456
449.5
441.75
435
434.9
444.95
445.55
449.65
467
467.9
50

439.45
454.1
451.75
452.65
464.4
450.75
440.5
436.55
446.2
450.05
455.15
453.45
467.6
465.35
472.35
472
479.3
480.6
483.3
482.95
448.55
470
479.75
477.15
480
477.5
472.1
480.3
478.5
475.3
462.6
468.95
469.9
460.3
456.6
450.1
440
440
414.2
411.3
419.05
434.1
432.2
429.2
449.45
453.15

450.1
457.45
458
470.6
467.65
456.05
448.9
438.7
450
454.7
457.5
467.15
470.65
473.9
478.05
478.15
491.85
489.55
487
484.35
468
472
482.65
490
482.3
483.1
481.85
483
484.25
477.25
464.05
471.4
472.25
465.7
459.35
458.3
444.65
444.05
426.1
429.65
430.9
440.85
435.2
442.5
453.5
466

-1.3803681
1.6329705
0.1202317
2.7510917
-0.6268593
-2.4804875
-1.5678105
-2.272221
2.5757921
1.0444444
0.6157906
2.1092896
0.749224
0.6905344
0.8757122
0.0209183
2.8652097
-0.4676222
-0.5208865
-0.5441478
-3.3756581
0.8547009
2.2563559
1.5228426
-1.571428
0.1658719
-0.258745
0.2386635
0.2587992
-1.445534
-2.765846
1.583881
0.180314
-1.386977
-1.363538
-0.228583
-2.978398
-0.134937
-4.042337
0.8331378
0.2909345
2.3091204
-1.281615
1.6773897
2.4858757
2.7563396

HDFCBANK
HDFCBANK
HDFCBANK
HDFCBANK
HDFCBANK

5-Dec-12
7-Dec-12
8-Dec-12
9-Dec-12
12-Dec-12

463.7
470
467
447
448.1

467.45
470.9
467.7
451.2
450.95

458
462.1
451.1
440.5
426.3

462.35
467.1
453.75
443.75
432.05

-0.783261
1.0273602
-2.858060
-2.203856
-2.636619

HDFCBANK
HDFCBANK
HDFCBANK
HDFCBANK
HDFCBANK
HDFCBANK
HDFCBANK
HDFCBANK
HDFCBANK
HDFCBANK
HDFCBANK
HDFCBANK

13-Dec-12
14-Dec-12
15-Dec-12
16-Dec-12
19-Dec-12
20-Dec-12
21-Dec-12
22-Dec-12
23-Dec-12
26-Dec-12
27-Dec-12
28-Dec-12

428
439
429
434.1
412.05
406
426
431.5
444.2
439
440.3
442.5

445.4
443.75
436
440.5
413
421.6
439.4
444.8
446.5
445.4
443.6
443

426
430.25
427
410
400.25
404
417.8
428.8
436
437.05
435.7
433.05

438.4
434.35
431.35
415.3
406
414.2
435.45
442.85
437.55
443.7
439.7
439.8

1.4697373
-0.923813
-0.6906872
-3.7208763
-2.2393451
2.0197044
5.1303718
1.6993914
-1.1967935
1.4055537
-0.90151
0.0227428

HDFCBANK
HDFCBANK
HDFCBANK
HDFCBANK
HDFCBANK
HDFCBANK
HDFCBANK
HDFCBANK
HDFCBANK
HDFCBANK
HDFCBANK
HDFCBANK
HDFCBANK
HDFCBANK
HDFCBANK
HDFCBANK
HDFCBANK
HDFCBANK
HDFCBANK
HDFCBANK
HDFCBANK
HDFCBANK
HDFCBANK
HDFCBANK

29-Dec-12
30-Dec-12
2-Jan-13
3-Jan-13
4-Jan-13
5-Jan-13
6-Jan-13
7-Jan-13
9-Jan-13
10-Jan-13
11-Jan-13
12-Jan-13
13-Jan-13
16-Jan-13
17-Jan-13
18-Jan-13
19-Jan-13
20-Jan-13
23-Jan-13
24-Jan-13
25-Jan-13
27-Jan-13
30-Jan-13
31-Jan-13

435.65
433.8
428.9
431.4
441.9
444
441
453
451.9
460
460.5
461.7
470
466.8
463.9
472.9
486
490
486
485.25
490.25
503.9
482.95
483.5

442
434
429.8
440.9
444.95
446.7
457.15
453.3
457.1
462.3
464
469.1
473.05
467.85
469
485.4
490.25
493.45
487.75
493.1
493
504
483
495

426
422.1
419.5
430
430.85
440.3
438.95
450
446
456
455
461.2
461.05
458.25
463
469.6
480.3
480.45
480.9
480.55
485.75
479.65
473
479.85

429.6
426.85
428.45
439.15
443.3
443.65
453.3
450.95
455.7
459.7
462.65
466.65
469.6
460.5
468.4
481.9
486.8
490.55
484
488.8
490.2
484.2
479.05
492.1

-2.319236
-0.6401304
0.3748389
2.4973743
0.9450074
0.0789533
2.1751381
-0.5184205
1.0533319
0.8777705
0.6417229
0.8645845
0.6321654
-1.9378194
1.7155266
2.882152
1.0168085
0.7703369
-1.335236
0.9917355
0.2864157
-1.2239902
-1.0636101
2.7241415

PERFORMACNE OF HDFC BANK

51

DAT A INTERPRETATION:
The above chart indicating performance of HDFC bank for the given period. Where
the stock records high fluctuations ups and downs, but closed near to open price only.
Stock opened at 2367 and created a high price of 2425, in the starting week of
September created low value of 1981.40 and by 20th November stock reached to 2371.
It seems stock has grown 20% from low to high in two months. Where investors have
high risk and high returns.
HDFC BANK results
Money control Bureau
India's second largest private sector lender HDFC Bank 's third quarter (OctoberDecember) net profit rose more than 31% year-on-year to Rs 1,430 crore on the back
of robust loan growth. Net interest income or the difference between interests earned
and paid out increased nearly 13% y-o-y to Rs 2,945 crore.
The quarterly numbers were a little above the CNBC TV18 poll estimates that saw
28.5% rise in the net profit.
"We have seen higher growth in retail lending segment," said Paresh Sukthankar, the
executive director, HDFC Bank over a conference call.
"This trend would continue for another quarter. However, we will grow almost
equally both on retail and corporate sides in the next one/two years. During the
52

quarter, the retail loans expanded by 29% while loans to companies grew by 15% y-oy. We have cut off some short term wholesale lending exposure on margin concern."
The lender's overall loan book grew by 22% Y-o-Y to around Rs 1.96 lakh crore.
Retail loans currently account for more than 51% of the book while corporate loans
form the rest. Moreover, the incremental loan growth has been around 21% to Rs
35,000 crore between April 1 and Dec 31, 2013.
For many banks, incremental loan growth has been sub duded so far as against their
year-on-year growth. This would force lenders either to go for aggressive lending in
the last quarter to achieve their credit growth target or bring down loan growth. The
Reserve Bank of India has projected the industry's credit off take at 18% in FY12.
"We expect, the industry credit will grow at 16% while HDFC Bank's (loan growth)
will be a few percentage points higher than that," added Suthankar.
The lender's cost of funds have gone up by 10 bps sequentially while it rose by 1.30%
(or 130 basis points) Y-o-Y basis. Its net interest margin (NIM) however did not
squeeze and remained the same at 4.1% as in the July-September quarter.
Despite concerns over economic slowdown, the bank has retained its asset quality. Its
gross non-performing asset (NPA) ratio was flat at 1% quarter-on-quarter. Similarly,
net NPA ratio remained unchanged at 0.20%.
According to analysts, the lender's credit exposure to commercial vehicle (CVs) and
construction equipment segments might pose some problem for its asset quality.
However, if the bank expands across the nation (in this segment) with additional
exposure to the light commercial vehicle sector (LCV), the risk could be mitigated.
"Along with CVs, we are also lending for LCVs. In between Dec, 2010 and Dec 2012,
we have increased our presence from 883 cities to 1174 cities. We are now foraying
into semi-urban areas," Sukthankar told Moneycontrol.com adding that the marginal
credit exposure in construction equipments is not in the troubled areas. It has not
added to bad loans.
The other income component too increased by 26% Y-o-Y to Rs 1,420 crore,
supported by higher fee and commission income.
HDFC Bank shares on Thursday closed at Rs 487, up nearly 1% on the NSE
PERFORMANCE OF SBIN FROM September 2012 TO February 2013

53

Symbol

Date

OPEN

HIGH

LOW

CLOSE

%
CHANGE

54

SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN

15-Sep-12
16-Sep-12
19-Sep-12
20-Sep-12
21-Sep-12
22-Sep-12
23-Sep-12
26-Sep-12
27-Sep-12
28-Sep-12
29-Sep-12
30-Sep-12
3-Oct-12
4-Oct-12
5-Oct-12
7-Oct-12
10-Oct-12
11-Oct-12
12-Oct-12
13-Oct-12
14-Oct-12
17-Oct-12
18-Oct-12
19-Oct-12
20-Oct-12
21-Oct-12
24-Oct-12
25-Oct-12
26-Oct-12
28-Oct-12
31-Oct-12
1-Nov-12
2-Nov-12
3-Nov-12
4-Nov-12
8-Nov-12
9-Nov-12
11-Nov-12
14-Nov-12
15-Nov-12
16-Nov-12
17-Nov-12
18-Nov-12
21-Nov-12
22-Nov-12
23-Nov-12

1847.8
1913.5
1928.5
1916
1995
1962.25
1911
1952.05
1985.05
2010
1956
1934.7
1882.15
1850
1800.1
1763
1759.95
1776.8
1780.25
1881
1871.05
1904
1869.9
1887.95
1892
1941.4
1975
1919.8
1854.9
1925
1918.9
1892.5
1887
1905
1964.5
1977
2013
1861.8
1826
1745
1728
1763.7
1750.1
1723
1681.4
1674

1904.8
1958.95
1932.5
1999.9
2024
1973.9
1981.9
1970.95
2006.8
2012.7
1961.8
1938.65
1885
1872.8
1812.2
1777.85
1764.85
1806
1880
1933.95
1906.5
1933
1885.6
1923.5
1940
1967.4
1989
1960
1870
1929.15
1921.75
1921
1924.8
1940
1980.9
2004
2017.5
1864.9
1827
1763.7
1780
1798.8
1766
1724.45
1709
1674

1830
1880.1
1905.05
1902
1990.7
1930
1890
1921.8
1977.6
1961
1911.65
1905.35
1851
1750
1710
1742.55
1722.2
1753.5
1757.25
1875
1869.3
1883.15
1838
1886.05
1886.7
1936.15
1885.75
1827
1852
1890.25
1878
1886
1885
1903.45
1953.05
1960
1852.2
1781.3
1740.4
1718.3
1718.1
1746.5
1703.3
1654.55
1665.3
1627.25
55

1898.05
1945.6
1916.95
1990.7
2009.6
1937.55
1950.25
1951.35
1997.3
1969.35
1952.35
1911.05
1861.6
1787.2
1718.4
1752.3
1756.05
1764.55
1872.05
1887.35
1885.2
1891.7
1866.55
1918.35
1935.05
1948.25
1908.75
1839.8
1866.65
1909.8
1906.3
1901.4
1909.4
1934.75
1966.15
1997.3
1862.05
1798.35
1753.1
1729.65
1765.95
1757.45
1726.65
1672.2
1689.5
1655.2

0
2.5052027
-1.4725535
3.8472574
0.9494148
-3.5852906
0.655467
0.056403
2.35478
-1.3993892
-0.863229
-2.1153994
-2.5875827
-3.9965621
-3.8495971
1.9727654
0.2140045
0.4840409
6.0922048
0.8172859
-0.1139163
0.344791
-1.329492
2.7751734
0.8705398
0.6821529
-2.0274605
-3.6123117
1.4593978
2.3116278
-0.1832653
-0.2570424
0.4207426
1.3276422
1.6229487
1.5843145
-6.7716417
-3.4209608
-2.5161954
-1.3376305
2.0986905
-0.4813273
-1.7525392
-3.1535053
1.0345652
-2.0301864

SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN

24-Nov-12
25-Nov-12
28-Nov-12
29-Nov-12
30-Nov-12
1-Dec-12
2-Dec-12
5-Dec-12
7-Dec-12
8-Dec-12
9-Dec-12
12-Dec-12
13-Dec-12
14-Dec-12
15-Dec-12
16-Dec-12
19-Dec-12
20-Dec-12
21-Dec-12
22-Dec-12
23-Dec-12
26-Dec-12
27-Dec-12
28-Dec-12
29-Dec-12
30-Dec-12
2-Jan-13
3-Jan-13
4-Jan-13
5-Jan-13
6-Jan-13
7-Jan-13
9-Jan-13
10-Jan-13
11-Jan-13
12-Jan-13
13-Jan-13
16-Jan-13
17-Jan-13
18-Jan-13
19-Jan-13
20-Jan-13
23-Jan-13
24-Jan-13
25-Jan-13
27-Jan-13

1656
1649
1721
1788
1749.7
1816
1824.5
1884.7
1914.7
1930
1830.25
1882.7
1758
1784
1756.5
1752
1665
1632
1614.9
1610
1675
1643.15
1665
1629.1
1600
1637.9
1629
1644
1712
1696
1675
1670.1
1661.7
1649.75
1706
1730.7
1776.85
1756.2
1838
1850
1880
1898
1931.9
1932
2055.25
2064.4

1668.4
1698.95
1787.95
1797
1795
1852.7
1899
1917
1959.85
1933.8
1884.9
1896.65
1807.9
1839.95
1771.95
1782.3
1665
1649
1635
1679.05
1691.8
1675
1669
1635
1637
1649.95
1636
1710
1713.9
1718.55
1707.6
1684.25
1661.7
1708.75
1733.7
1776.4
1799.9
1834.9
1872.4
1871
1912.45
1944
1967.1
2058
2085.95
2070

1629
1635
1711.15
1747.15
1728
1810
1801.8
1870
1914
1860
1820
1763
1746.65
1771.05
1726.55
1665.15
1596.85
1571.1
1595.35
1588.15
1638
1642.2
1633.4
1602.5
1590
1605.55
1611.4
1643
1675.2
1680.05
1658.05
1662.1
1625.1
1649
1693.3
1720.3
1770
1748.4
1835.05
1820
1875.1
1895.15
1921
1926.7
2039.9
2017.9
56

1653.9
1690.6
1779.6
1761.2
1762.45
1824.15
1886.85
1911.05
1945.4
1867.9
1865.55
1772.75
1787.85
1785.15
1736.8
1679.1
1628.1
1578.5
1623.5
1671.1
1647.45
1665.65
1643.65
1610.2
1628.85
1619.05
1627.65
1705.65
1696.05
1692.45
1672.75
1669.1
1637.25
1702.6
1726.95
1764.4
1776.1
1816.4
1844
1865.35
1884.3
1932.85
1940.5
2040.8
2058
2040.6

-0.0785404
2.2189975
5.2644032
-1.0339402
0.0709743
3.5008085
3.4372173
1.2825609
1.7974412
-3.9837566
-0.1258097
-4.9744043
0.851784
-0.1510194
-2.7084559
-3.3222018
-3.0373414
-3.0464959
2.8508077
2.9319372
-1.4152355
1.1047376
-1.3208057
-2.0351048
1.1582412
-0.6016515
0.5311757
4.7921851
-0.5628353
-0.2122579
-1.163993
-0.2182036
-1.908214
3.9914491
1.4301656
2.1685631
0.6631149
2.2690164
1.5194891
1.1578091
1.0158951
2.5765536
0.3957886
5.1687709
0.8428067
-0.845481

SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN
SBIN

30-Jan-13
31-Jan-13
1-Feb-13
2-Feb-13
3-Feb-13
6-Feb-13
7-Feb-13
8-Feb-13
9-Feb-13
10-Feb-13
13-Feb-13
14-Feb-13
15-Feb-13

2015
2019.85
2051
2095
2070
2131.95
2181.9
2161.5
2164.3
2188
2174
2128.5
2227

2058.75
2073
2088.4
2113.4
2117.6
2187.45
2188.3
2188
2192
2209
2180.5
2217.9
2257.55

1970.15
2012
2042.5
1982.3
2036.5
2131.95
2145.4
2145.2
2157.6
2150.15
2096
2128.5
2222.5

1985.25
2061.6
2077.65
2072.6
2103.15
2162.65
2153.1
2177.75
2184
2171.9
2129.25
2200.15
2250.65

-2.7124375
3.8458632
0.7785215
-0.2430631
1.473994
2.8290897
-0.4415879
1.1448609
0.2869935
-0.5540293
-1.9637184
3.329811
2.295298

PERFORMANCE OF SBIN

DATA INTERPRETATION: The above data indicating performance of SBIN for the
given period. Recorded highest intraday fluctuations and more bearish days than
bullish days, this is the one cause stock fall close to 12.5% in 4 months. One of the
major reason for fall in SBI, decreased 22% quarterly growth in third quarter when
compare to second quarter. All major banks are participated in negative rally due to
hike in inflation and interest rates.
57

SBIN RESULTS:
Money control Bureau
India's largest lender, State Bank of India 's (SBI) has posted a better than expected
third quarter (Oct-Dec) performance. Its net profit rose more than 15% (year-onyear) to Rs 3263 crore on higher interest income.
Net Interest Income (NII) or the difference between interests earned and
expended rose nearly 27% to Rs 11466 crore.
Net Interest Margin (NIM) also increased to 4.05% compared to 3.8% in JulySeptember quarter.
The gross non-performing asset (NPA) ratio stood at 4.61% as against 4.19% in the
previous quarter (Q2). The net NPA ratio 2.22 versus 2.04% in Q2.
Loan book expanded more than 17% (YoY) to Rs 8.69 lakh crore. Incremental credit
growth (in between April and December) has been 13%. Retail book grew by 12%
YoY, to Rs 1.75 lakh crore.
Deposit grew nearly 14%, YoY, to Rs 10.01 lakh crore.
Total provisions are at round Rs 4000 crore, in Q3 as against Rs 3936 crore a year
back. Provision against loan losses zoomed 84% YoY to Rs 3006 crore

58

CORRELATION: Based on above data applied correlation matrix for analysis.

CORRELATION MATRIX AMONG NIFTY, IT SECTOR & IT SECTOR STOCKS
NIFTY

IT

INFOSYS

IT

0.671696

INFOSYS

0.584614

0.954872

WPIRO

0.544935

0.699809

0.615026

TCS

0.512424

0.807348

0.646906

WIPRO

0.447889

WITH NIFTY:
1. Nifty to IT sector correlation is 0.671696 so; its positive correlation
between nifty and IT sector.
2.

Nifty to IT sector companies like Infosys,Wipro,Tcs correlation also

indicating positive correlation

WITH IT SECTOR:
1. IT sector to IT sector companies values also in positive 0.954872, 0.699809 &
0.807348 respectively. Here we can see positive correlation
WITH IT SECTOR COMPANIES:
1. Infosys to Wipro 0.615026, positive correlation and Infosys to TCS 0.646906
positive correlation and Wipro to TCS is 0.447889 indicating positive
correlation.

59

CORRELATION MATRIX AMONG NIFTY, BANKING SECTOR & BANKING

SECTOR STOCKS
NIFTY

BANKING

HDFC

BANKING

0.848358

HDFC

0.596498

0.69279

ICICI

0.677338

0.848183

0.518489

SBI

0.597145

0.73171

0.309653

ICICI

0.405427

Above table indicating correlation between NIFTY to BANKING sector and nifty to
HDFC, ICICI, SBI and inter companies correlation. The correlation values taken with
the help of 5 months data from 01st December 2011 to 20th April 2012.
WITH NIFTY:
1. NIFTY to banking sector correlation is 0.848358. Indicating positive
correlation.
2. NIFTY to all the banking sector companies HDFC, ICICI, SBI
correlation values 0.596498 and 0.677338 and 0.597145 respectively.
Here also indicating positive correlation.
WITH SECTOR:
1. Banking sector to all the companies in the sector correlation values are
0.69279, 0.848183, 0.73171 respectively indicating positive correlation.
WITH OIL SECTOR COMPANIES:
1. HDFC to ICICI 0.518489 and HDFC to SBI 0.309653 & ICICI to SBI
0.405427, so inter companies correlation also positive in banking sector.

FINDINGS
60

All stocks from NSE will not have same weight, based on previous history of
company and traded volume company weight decided by NSE. Reliance group
of stock has more weight in index.

Sector Indices only weight of respective sector stocks only. But nifty is weight

of all sector stocks.

Decreased share value is not an impact to decrease profits of company,
because in current market, share price purely based on speculation. If one can
observe in above analysis from 2012 to 2013 FY all stocks and Indices faces
fall in their prices, but the net profit was increased in the all stocks in the given

period.
According to previous history about INFOSYS results impact during 2 nd
quarter results announcement stock has shown growth instead of fall. But the
same stock fall after announcement of third quarter results.

FINDINGS WITH HISTORICAL DATA

o FY2008 to 2013 Nifty has given 67.48%, IT 64.41% % BANKING has
given 152.39% and recorded as top.
o Infosys has given 117.43%, TCS has given 143.17% and WIPRO has
given 42.89% and TCS recorded as top performer.
o SBIN has given 209.6%, HDFC 203.50% & ICICI bank has given
83.52% and SBIN recorded as top performer.
o Highest performance by SBIN
o Least performance by WIPRO.

NIFTY is always an average performance of 50 stocks, during the study nifty

has given only 67.48% where other companies might given less performance

than nifty.
Positive correlation proved for the given data from 1 st December 2011 to 20th

April 2012 with all the sample three indices and six companies.
Media is playing a vital role in stock market. Because now a days maximum
investors trading on NEWS based. Channels informing the support levels and
resistance levels time to time in the market. There is a chance to avoid high

risk.
Infosys has major weight in IT index and also have second priority in Nifty,
even though Infosys unable to give better performance for the given period.

61

SUGGESTIONS:

Based on my personal experience, I would like to suggest that direct equity

investments need more concentration than any other instruments. If an
investor really has time to monitor his investments then only he should give

priority.
Diversified portfolio (Investments) always gives positive returns. Here

investor has to diversify his risk with multiple options.

When blue chip companies announcing financial results its better to enter call

option and put option.

Speculative trading is very risk, when investor follows support and resistance

levels he can avoid unwanted risks.

Better to avoid fresh investment in special situations like announcement of
financial results and budget, where investors have high risk.

CONCLUSION:
INFLATION

GDP

IIP DATA

INTREST

GROWTH
RATES
SEP 2012
8.99
- 4.7
OCT 2012
10.06
8.3
7.5
NOV 2012
9.39
7.8
5.9
7.5
DEC 2012
9.34
7.7
7.5
JAN 2013
6.49
6.9
1.8
7.5
The above tabulation explains economical factors of the country. When above data
releases we can see fluctuations in market. The above data indicating decreased

62

inflation by month on month, this is the positive news for banking as well as to the
index.
GDP numbers not shown expected growth, but given market expected numbers, this
also positive news for the market
IIP Data , started in negative in the month of September 2011, but within two months
numbers reached to positive 5.9, when Indias industrial production data increases
when compare to previous data, its a positive news.
For the given period there are no changes in interest rates, this is also positive impact
on the market.
The given title in the company EQUITY ANALASYS W.R.T IT & BANKING
SECTOR, with sound objectives. Based on my objectives I have observed how trading
takes place in online and what are the advantages and disadvantages while trading
through online and process involved in trading. When concluding my major portion of
project where I had a scope to learn about equity markets and how Indian economy is
dependent with live examples, like impact of foreign markets on Indian economy. And
more over IT & Banking two different sectors, when analyzed historical performance I
have seen more fluctuations in IT rather than BANKING, because IT has international
and dollar exposure. And when considered financial results as a factor in short term
performance I have observed lot of volatility in financial results period.
And my final conclusion equity investments need more concentration while investing
for short term or long term.

BIBLIOGRAPHY:
Books :

Investment analysis and portfolio management. by m.ranganatham &

r.madhumathi.

Security analysis. of icfai.

Financial markets and services. , by gordon & natrajan.

Investment management. , v.k. bhalla.

63

Research methodology, by c.r.kothari

Websites:
www.nseindia.com
www.bseindia.com
www.sharekhan.com
www.sebi.org.in
www.moneycontrol.com

64