A STUDY ON

“EQUITY ANALYSIS WITH REFERENCE TO AUTOMOBILE

INDUSTRY”
INDIABULLS

0
 CONTENTS

PARTICULARS PAGE NO.

CHAPTER -1 INTRODUCTION 1-7

1.1 NEED FOR THE STUDY

1.2 OBJECTIVES OF THE STUDY

1.3 SCOPE OF THE STUDY

1.4 RESEARCH METHODOLOGY

1.5LIMITATIONS OF THE STUDY

8-32
CHAPTER -2 INDUSTRY PROFILE
COMPANY PROFILE

33-48
REVIEW OF LTERATURE
CHAPTER -3
49-60
DATA ANALYSIS & INTERPRETATION
CHAPTER-4
61-68
FINDINGS & SUGGESTIONS
CHAPTER -5
CONCLUSIONS & QUESTIONNAIRE

69
BIBLIOGRAPHY
1
 CHAPTER I:
INTRODUCTION

2
 INTRODUCTION
India is a developing country. Nowadays many people are interested to invest in financial
markets especially on equities to get high returns, and to save tax in honest way. Equities are
playing a major role in contribution of capital to the business from the beginning. Since the
introduction of shares concept, large numbers of investors are showing interest to invest in
stock market. In an industry plagued with skepticism and a stock market increasingly difficult
to predict and contend with, if one looks hard enough there may still be a genuine aid for the
Day Trader and Short Term Investor. The price of a security represents a consensus. It is the
price at which one person agrees to buy and another agrees to sell. The price at which an
investor is willing to buy or sell depends primarily on his expectations. If he expects the
security's price to rise, he will buy it; if the investor expects the price to fall, he will sell it.
These simple statements are the cause of a major challenge in forecasting security prices,
because they refer to human expectations. As we all know firsthand, humans expectations are
neither easily quantifiable nor predictable. If prices are based on investor expectations, then
knowing what a security should sell for (i.e., fundamental analysis) becomes less important
than knowing what other investors expect it to sell for. That's not to say that knowing what a
security should sell for isn't important--it is. But there is usually a fairly strong consensus of a
stock's future earnings that the average investor cannot disprove.

Fundamental analysis and technical analysis can co-exist in peace and complement each
other. Since all the investors in the stock market want to make the maximum profits possible,
they just cannot afford to ignore either fundamental or technical analysis.

3
The automobile industry, one of the core sectors, had undergone metamorphosis with

the advent of new business and manufacturing practices in the light of liberalization

and globalization. The sector seems to be optimistic of posting strong sales in the

couple of years in the view of a reasonable surge in demand. The Indian automobile

market is gearing towards international standards to meet the needs of the global

automobile giants and become a global hub.

A detailed analysis of Automobile industry had been covered in respect of past

growth and performance. Under this project to better understand the Industry. The

Fundamental tools to make it more authentic and meaningful.

An economy-industry-company (E.I.C) approach has been followed under

Fundamental Analysis which covers effect of Recession, the impact of inflation,

FDI’s, Export, and GDP etc. on Automobile Industry. The Industry Analysis has been

done with the help of SWOT analysis and industry life cycle. For Company Analysis

as a part of Fundamental tool we have undergone with the comparative analysis of

TATA Motors the leading company, Maruti Suzuki India’s largest Car manufacturer

and Mahindra and Mahindra along with the help of ratio analysis. The fundamental

aspect consists of financial and Non-Financial analysis of these companies.

At the end conclusion and recommendations have been specified so as to make the

project work more meaningful and purposeful.

A general definition of Systemic Risk which is not limited by its mathematical

approaches, model assumptions or focus on one institution; and which is also the first
operationalizable definition of Systemic Risk encompassing the systemic character of
financial, political, environmental, and many other risks is available since 2017

4
 NEED FOR THE STUDY

Equity research studies the financial statements, industry trends, competitors,

economic conditions, etc., which enables the investors to make a wise and informed
decision. Of course, studying these trends is extremely difficult for any investor and it
also requires a knowledge of how work in the stock market. Therefore, equity
research analysts come into the picture. The work is quite challenging and demanding
as the analyst needs to be vigilant about the current happenings.

5
 OBJECTIVE OF THE STUDY
To calculate and analyze returns of selected automobile stocks for a period of
one year.

To calculate returns on NIFTY for a period of one year.

To calculate and analyze correlation between NIFTY returns and the selected
automobile stocks for six months in a year.

6
 SCOPE OF THE STUDY
The project is based on tools like Equity analysis further, the study is based on

information of The Year 2017.

The study was mainly limited to the Equity Analysis of TATA MOTORS ,

MARUTHI, MAHINDRA&MAHINDRA, with the help of apt tools and risk and

relationship involved in share price of those companies mentioned above were tested.

Further, this has covered 12 months time period. In general, the study is helping to

identify volatility of selected automobile stocks.

7
 RESEARCH METHODOLOGY

 For the purpose of the study was collected through secondary source of data

collection method. Major source of data are published stock prices of

 Closing prices of TATA, MAHINDRA & MARUTI had been collected.

 Secondary Data: The study was mainly based on secondary data. The

required data for the purpose of the study were collected form books, journals,

magazines, news papers, company information’s and websites

 Data Collection: The entire secondary data were collected from official

website of National Stock Exchange (NSE).

 Period of the Study: The study covers five automobile companies close price

for a period of 12 months (WEEKLY) from January 2017 to December 2017.

8
 LIMITATIONS
 The data collected is only from secondary source.

 The data which is collected for doing this report has been collected from

Internet Websites where there can be some hitches.

 The Time period taken for doing the data analysis has been from NSE (Nifty)

2017

 The project time is limited to 45days only.

9
 CHAPTER 2:
INDUSTRY PROFILE
COMPANY PROFILE

10
 INDUSTRY PROFILE

a. Introduction to product or industry

Finance is the pre-requisite for modern business and financial institutions

play a vital role in the economic system. It is through financial markets and

institutions that the financial system of an economy works. Financial markets refer to

the institutional arrangements for dealing in financial assets and credit instruments of

different types such as currency, cheques, bank deposits, bills, bonds, equities, etc.

Financial market is a broad term describing any marketplace where buyers and sellers

participate in the trade of assets such as equities, bonds, currencies and derivatives.

They are typically defined by having transparent pricing, basic regulations on trading,

costs and fees and market forces determining the prices of securities that trade.

Generally, there is no specific place or location to indicate a financial market.

Wherever a financial transaction takes place, it is deemed to have taken place in the
financial market. Hence financial markets are pervasive in nature since financial
transactions are themselves very pervasive throughout the economic system. For
instance, issue of equity shares, granting of loan by term lending institutions, deposit
of money into a bank, purchase of debentures, sale of shares and so on.

In a nutshell, financial markets are the credit markets catering to the various needs of

the individuals, firms and institutions by facilitating buying and selling of financial

assets, claims and services.

11
CLASSIFICATION OF FINANCIAL MARKETS

12
INDUSTRY SCENARIO

Capital Market

The capital market is a market for financial assets which have a long or indefinite

maturity. Generally, it deals with long term securities which have a period of above

one year. In the widest sense, it consists of a series of channels through which the

savings of the community are made available for industrial and commercial

enterprises and public authorities. As a whole, capital market facilitates rising of

capital.

The major functions performed by a capital market are:

1. Mobilization of financial resources on a nation-wide scale.

2. Securing the foreign capital and know-how to fill up deficit in the required

resources for economic growth at a faster rate.

3. Effective allocation of the mobilized financial resources, by directing the same

to projects yielding highest yield or to the projects needed to promote balanced

economic development.

Capital market consists of primary market and secondary market.

Primary market: Primary market is a market for new issues or new financial claims.

Hence it is also called as New Issue Market. It basically deals with those securities

which are issued to the public for the first time. The market, therefore, makes

available a new block of securities for public subscription. In other words, it deals

with raising of fresh capital by companies either for cash or for consideration other

13
than cash. The best example could be Initial Public Offering (IPO) where a firm offers

shares to the public for the first time.

Secondary market: Secondary market is a market where existing securities are traded. In

other words, securities which have already passed through new issue market are traded in this

market. Generally, such securities are quoted in the stock exchange and it provides a

continuous and regular market for buying and selling of securities. This market consists of all

stock exchanges recognized by the government of India.

Money Market

Money markets are the markets for short-term, highly liquid debt securities. Money market

securities are generally very safe investments which return relatively low interest rate that is

most appropriate for temporary cash storage or short term time needs. It consists of a number

of sub-markets which collectively constitute the money market namely call money market,

commercial bills market, acceptance market, and Treasury bill market.

Derivatives Market

The derivatives market is the financial market for derivatives, financial instruments like

futures contracts or options, which are derived from other forms of assets. A derivative is

a security whose price is dependent upon or derived from one or more underlying assets. The

derivative itself is merely a contract between two or more parties. Its value is determined by

fluctuations in the underlying asset. The most common underlying assets include stocks,

bonds, commodities, currencies, interest rates and market indexes. The important financial

derivatives are the following:

 Forwards: Forwards are the oldest of all the derivatives. A forward contract

refers to an agreement between two parties to exchange an agreed quantity of an

asset for cash at a certain date in future at a predetermined price specified in that

agreement. The promised asset may be currency, commodity, instrument etc.

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 Futures: Future contract is very similar to a forward contract in all respects

excepting the fact that it is completely a standardized one. It is nothing but a

standardized forward contract which is legally enforceable and always traded on

an organized exchange.

 Options: A financial derivative that represents a contract sold by one party

(option writer) to another party (option holder). The contract offers the buyer the

right, but not the obligation, to buy (call) or sell (put) a security or other financial

asset at an agreed-upon price (the strike price) during a certain period of time or

on a specific date (exercise date). Call options give the option to buy at certain

price, so the buyer would want the stock to go up. Put options give the option to

sell at a certain price, so the buyer would want the stock to go down. Swaps: It is

yet another exciting trading instrument. Infact, it is the combination of forwards

by two counterparties. It is arranged to reap the benefits arising from the

fluctuations in the market – either currency market or interest rate market or any

other market for that matter. Foreign Exchange Market

It is a market in which participants are able to buy, sell, exchange and speculate on

currencies.  Foreign exchange markets are made up of banks, commercial

companies, central banks, investment management firms, hedge funds, and retail

forex brokers and investors. The forex market is considered to be the largest

financial market in the world. It is a worldwide decentralized over-the-counter

financial market for the trading of currencies. Because the currency markets are

large and liquid, they are believed to be the most efficient financial markets. It is

important to realize that the foreign exchange market is not a single exchange, but

15
is constructed of a global network of computers that connects participants from all

parts of the world.

16
 C.FUTURE FOCUS:
Mergers and acquisition (M&A) activity in India rose 125 per cent year-on-year to
US$ 32.5 billion across 445 deals during January-September 2016.** Domestic M&A
deal value stood at US$ 7.3 billion across 137 deals during July-September 2016,
which is around 65 per cent of the total M&A deal value of US$ 11.3 billion during
the quarter. ^

Private equity (PE) investments in real estate sector in India have increased 22 per
cent in the first nine months of 2016 to reach Rs 283 billion (US$ 4.24 billion), as
compared to the same period in 20151

Funds mobilised by Indian companies through non-convertible debentures (NCDs)

increased sixteen-fold to Rs 23,901.4 crore (US$ 3.58 billion) during April-September
2016 led by growing investor appetite.

The assets under management (AUM) of the mutual fund (MF) industry grew 45 per
cent to Rs 17.89 lakh crore (US$ 268.35 billion) during March 2016 to February
2017.@@ Mutual fund asset base in India increased by Rs 3.71 trillion (US$ 55.65
billion) to reach a total corpus of around Rs 17 trillion (US$ 255 billion) in 2016,
which is the highest growth recorded in the last seven years.

The Indian life insurance industry has begun to recover and is likely to report 12-15
per cent growth in FY 2016-17.! India’s life insurance sector is the biggest in the
world with about 360 million policies, which are expected to increase at a
Compounded Annual Growth Rate (CAGR) of 12-15 per cent over the next five
years. The insurance industry is planning to hike penetration levels to five per cent by
2020, and could top the US$ 1 trillion mark in the next seven years. The total market
size of India's insurance sector is projected to touch US$ 350-400 billion by 2020.

Investment corpus in India’s pension sector is expected to cross US$ 1 trillion by

2025, following the passage of the Pension Fund Regulatory and Development
Authority (PFRDA) Act 2013.

In 2016, 2.4 million new demat accounts were opened by Indians, the highest number
of account openings since 2008, led by higher number of initial public offerings
(IPOs) and greater interest in mutual fund investments. SBI, the second largest issuer

17
of credit cards in India, has reported issuance of 115,000 new cards in December
2016, post demonetization, taking its total card issuance to 4.75 million.

Prime Minister of India, Mr Narendra Modi has stated that the BHIM (Bharat
Interface for Money) mobile application reached the mark of 10 million downloads
indicating the widespread acceptance of the app. India's digital payments industry is
expected to grow by 10 times to reach US$ 500 billion by 2020 and contribute 15 per
cent of Gross Domestic Product (GDP).$

SECTORAL REPORT | JUNE, 2017

Introduction

India has a diversified financial sector undergoing rapid expansion, both in terms of
strong growth of existing financial services firms and new entities entering the
market. The sector comprises commercial banks, insurance companies, non-banking
financial companies, co-operatives, pension funds, mutual funds and other smaller
financial entities. The banking regulator has allowed new entities such as payments
banks to be created recently thereby adding to the types of entities operating in the
sector. However, the financial sector in India is predominantly a banking sector with
commercial banks accounting for more than 64 per cent of the total assets held by the
financial system.

The Government of India has introduced several reforms to liberalise, regulate and
enhance this industry. The Government and Reserve Bank of India (RBI) have taken
various measures to facilitate easy access to finance for Micro, Small and Medium
Enterprises (MSMEs). These measures include launching Credit Guarantee Fund
Scheme for Micro and Small Enterprises, issuing guideline to banks regarding
collateral requirements and setting up a Micro Units Development and Refinance
Agency (MUDRA). With a combined push by both government and private sector,
India is undoubtedly one of the world's most vibrant capital markets.

Market Size

Mergers and acquisition (M&A) activity in India rose 125 per cent year-on-year to
US$ 32.5 billion across 445 deals during January-September 2016.** Domestic M&A
deal value stood at US$ 7.3 billion across 137 deals during July-September 2016,

18
which is around 65 per cent of the total M&A deal value of US$ 11.3 billion during
the quarter. ^

Private equity (PE) investments in real estate sector in India have increased 22 per
cent in the first nine months of 2016 to reach Rs 283 billion (US$ 4.24 billion), as
compared to the same period in 20151.Funds mobilised by Indian companies through
non-convertible debentures (NCDs) increased sixteen-fold to Rs 23,901.4 crore (US$
3.58 billion) during April-September 2016 led by growing investor appetite.@

The assets under management (AUM) of the mutual fund (MF) industry grew 45 per
cent to Rs 17.89 lakh crore (US$ 268.35 billion) during March 2016 to February
2017.@@ Mutual fund asset base in India increased by Rs 3.71 trillion (US$ 55.65
billion) to reach a total corpus of around Rs 17 trillion (US$ 255 billion) in 2016,
which is the highest growth recorded in the last seven years.

The Indian life insurance industry has begun to recover and is likely to report 12-15
per cent growth in FY 2016-17.! India’s life insurance sector is the biggest in the
world with about 360 million policies, which are expected to increase at a
Compounded Annual Growth Rate (CAGR) of 12-15 per cent over the next five
years. The insurance industry is planning to hike penetration levels to five per cent by
2020, and could top the US$ 1 trillion mark in the next seven years. The total market
size of India's insurance sector is projected to touch US$ 350-400 billion by 2020.

Investment corpus in India’s pension sector is expected to cross US$ 1 trillion by

2025, following the passage of the Pension Fund Regulatory and Development
Authority (PFRDA) Act 2013.

19
In 2016, 2.4 million new demat accounts were opened by Indians, the highest number
of account openings since 2008, led by higher number of initial public offerings
(IPOs) and greater interest in mutual fund investments. SBI, the second largest issuer
of credit cards in India, has reported issuance of 115,000 new cards in December
2016, post demonetisation, taking its total card issuance to 4.75 million.

Prime Minister of India, Mr Narendra Modi has stated that the BHIM (Bharat
Interface for Money) mobile application reached the mark of 10 million downloads
indicating the widespread acceptance of the app. India's digital payments industry is
expected to grow by 10 times to reach US$ 500 billion by 2020 and contribute 15 per
cent of Gross Domestic Product (GDP).$

Investments/Developments

The Taiwan Futures Exchange (TAIFEX) has launched the TAIFEX Nifty 50, a new
Taiwan dollar denominated futures contract that will track the National Stock
Exchange's (NSE) Nifty 50 index, thereby providing international investors with more
efficient access to the Indian capital market.

Warburg Pincus LLC, the US-based private equity firm, plans to invest around US$
75 million in series C round of funding to buy a significant stake in Capital Float, an
online credit platform.

Asset management company Rising Straits Capital plans to raise US$ 100 million to
capitalise its real estate-focused non-banking financial company (NBFC) named
Rising Straits Finance Co. Pvt. Ltd, which is expected to start lending from 2017 to
regular residental and office projects, and also to logistics, hospitality and healthcare
sectors.

IFMR Capital, an NBFC that works in the area of financial inclusion, has raised US$
25 million from London-based venture capital fund Eight Roads Ventures, which will
be used to grow its existing business and explore other opportunities across new
products and sectors.

The first ever rupee-denominated bond in the world by an Indian company, termed as
masala bond, has been listed on the London stock exchange by the Housing

20
Development Finance Corporation Limited (HDFC Ltd). The issue raised US$ 450
million, with a maturity of three years and an annual yield of 8.33 per cent.

IFMR Capital, a debt finance provider, has raised US$ 17 million from British
banking and financial services firm Standard Chartered Private Equity (SCPE), which
will be used for product innovation and to increase its client base and sectors that it
caters to.

US-based private equity (PE) firm Advent International has acquired a minority stake
of 40 per cent in ASK Group, a leading investment and wealth management company,
in a deal worth US$ 130 million.

Avendus Capital plans to start its structured finance business with a dedicated fund of
size Rs 500 crore (US$ 73 million), which will be primarily raised from domestic
investors, and will aim for investments in growth companies, mid-market companies
and opportunities to provide structured debt or private financing.

Baring Private Equity Asia (BPEA) is raising a new India-dedicated credit fund of Rs
500 crore (US$ 75 million) with an option of retaining extra money collected than
initially planned up to Rs 250 crore (US$ 37.5 million). BPEA also plans to raise a
US$ 500 million new offshore credit fund.

Fino Paytech, a technology solution provider, plans to launch its payment bank
operations soon to provide basic banking services through 400 branches across 30
cities located in Maharashtra, Madhya Pradesh, Uttar Pradesh and Bihar.

Payism Technologies India Pvt. Ltd, a cash and cashless transactions facilitator, plans
to raise approximately US$ 25 million in growth equity capital for expansion purpose.

Paytm, an online payments firm, plans to invest Rs 600 crore (US$ 90 million) over
the next 10 months to expand its QR code-based payment network, aiming to add 10
million merchants across 650 districts by December 2017.

True North, a private equity firm, plans to acquire a majority stake in Home First
Finance Co. India Pvt. Ltd (HFFC), a private housing finance company, for US$ 100
million, which will be utilised for geographic expansion and customer acquisition in
affordable housing segment.

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Government policy

Government regulation affects the financial services industry in many ways,

but the specific impact depends on the nature of the regulation. Increased regulation
typically means a higher workload for people in financial services, because it takes
time and effort to adapt business practices to ensure that the new regulations are being
followed correctly.

While the increased time and workload resulting from government regulation can be
detrimental to individual financial or credit services companies in the short term,
government regulations can also benefit the financial services industry as a whole in
the long term. The Sarbanes-Oxley Act was passed by Congress in 2002 in response
to multiple financial scandals involving large conglomerates such as Enron and
WorldCom. The act held senior management of companies accountable for the
accuracy of their financial statements, while also requiring that internal controls be
established at these companies to prevent future fraud and abuse. Implementing these
regulations was expensive, but the act gave more protection to people investing in
financial services, which can increase investor confidence and improve overall
corporate investment.

The Securities And Exchange Commission (SEC) regulates the securities markets and
is supposed to protect investors against mismanagement and fraud. Ideally, these
types of regulations also encourage more investment, and help protect the stability of
financial services companies. This does not always work, as the financial crisis of
2007 demonstrated. The SEC had relaxed the net capital requirement for major
investment banks, allowing them to carry significantly more debt than what they had
in equity. When the housing bubble imploded, the excess debt became toxic and
banks started to fail.

Other types of regulation do not benefit financial services or asset management at all,
but are intended to protect other interests outside of the corporate world.
Environmental regulations are a common example of this. The Environmental
Protection Agency (EPA) often requires a company or industry to upgrade equipment
and to use more expensive processes to reduce environmental impact. These types of
regulations often have a ripple effect, causing tumult in the stock market and overall
instability in the financial sector as the regulations take effect. Companies often try to

22
shift their increased costs to their consumers or customers, which is another reason
why environmental regulations are often controversial.

Government regulation has also been used in the past to save businesses that would
otherwise not survive. The Troubled Asset Relief Program was run by the United
States Treasury and gave it the authority to inject billions of dollars into the U.S.
financial system to stabilize it in the wake of the 2007 and 2008 financial crisis. This
type of government intervention is typically frowned upon in the U.S., but the
extreme nature of the crisis required quick and strong action to prevent a complete
financial collapse.

23
 COMPANY PROFILE

INTRODUCTION TO INDIABULLS

Indiabulls Group is one of the country's leading business houses with interests in
housing finance, real estate, securities, construction equipment leasing and facilities
sector. The group had combined revenues of over Rs. 8,300 Cr and PAT of over Rs.
1,900 Cr for the year ended 31 March 2016. All the group companies are listed on the
Bombay Stock Exchange, and the National Stock Exchange. The combined market
capitalization of these companies as on 30th June 2016 was Rs. 17,900 Cr.

Indiabulls Securities (ISL) is one of India's leading capital markets companies

providing securities broking and advisory services. Indiabulls Securities also provides
depository services, equity research services and IPO distribution to its clients and
offers commodities trading through a separate company. These services are provided
both through on-line and off-line distribution channels. Indiabulls Securities is a
pioneer of on-line securities trading in India. Indiabulls Securities in-house trading
platform is one of the fastest and most efficient trading platforms in the country.
Indiabulls Securities has been assigned the highest rating BQ-1 by CRISIL.

Other main listed companies:

 Indiabulls Housing Finance Ltd. (IBHFL) is India´s 3rd largest Housing

Finance Company (HFC). The company is registered as a Housing Finance
Company (HFC) and is regulated by the National Housing Bank (NHB).
IBHFL is a leading provider of home loans, loan against properties and
commercial vehicle loans. 
The company has a loan asset book of over Rs. 34,400 Cr and has, since
inception, disbursed over Rs. 71,000 Cr to over 5.5 lakh customers. With a net
worth of over Rs. 5,300 Cr, IHFL is one of the best capitalized companies
amongst its peer with a CRAR of 18.47% as at March 31st, 2015. Further, the
company is one of the least levered amongst its peer set with a net debt-to-

24
 equity ratio of only 4.67. The company enjoys a credit rating of AA+.
IBHFL has 200 well appointed and customer accessible walk-in branches
spread across the country. Company’s national and International reach is
further enhanced from tie-ups with Yes Bank and Doha Bank 

 Indiabulls Real Estate (IBREL) is among India's top Real Estate companies
with development projects spread across residential complexes, integrated
townships, commercial office complexes, hotels, malls, Special Economic
Zones (SEZs) and infrastructure development. Indiabulls Real Estate partnered
with Farallon Capital Management LLC of USA to bring the first FDI into real
estate in the country. The company has a networth of Rs 7,403 Crore and has
purchased prime land, mostly in the metros and other Tier 1 cities worth Rs
4,000 Crore in government auctions alone. Indiabulls Real Estate is currently
developing 71.55 million sqft into premium quality, high-end commercial,
residential and retail spaces. The company has been assigned 'A+' rating. 

 Indiabulls Real Estate Ltd (IBREL) started in the year 2005, is one of the
largest real estate companies in India with focus on construction and
development of properties, project management, and construction services.
IBREL was demerged from Indiabulls Financial Services Limited in the year
2006, post that it was listed on the stock exchanges in the year 2007. IBREL
has a total Net worth of 6,884 Cr as on March 31, 2016. IBREL enjoys long-
term credit rating of A+ (which is one of the best in the industry).

 Indiabulls Power (IBPOW) is currently developing Thermal Power Projects

with an aggregate capacity of 5400 MW. The first unit is expected to go on
stream in May 2014. The net worth of Indiabulls Power is Rs 5,507 Crore. The
company has a total capital expenditure of Rs 27,500 Crore. The company has
been assigned 'BBB' rating.

Indiabulls is India’s leading Financial and Real Estate Company with a wide presence
throughout India. They ensure convenience and reliability in all their products and
services. Indiabulls has over 640 branches all over India.

The customers of Indiabulls are more than 4,50,000 which covers from a wide range
of financial services and products from securities, derivatives trading, depositary

25
services, research & advisory services, consumer secured & unsecured credit, loan
against shares and mortgage & housing finance. The company employs around 4000
Relationship managers who help the clients to satisfy their customized financial goals.
Indiabulls entered the Real Estate business in the year 2005 with its group of
companies. Large scale projects worth several hundred million dollars are evaluated
by them.

Indiabulls Financial Services Ltd is listed on the National Stock Exchange (NSE),
Bombay Stock Exchange (BSE) and Luxembourg Stock Exchange. The market
capitalization of Indiabulls is around USD 2500 million (29thDecember, 2006).
Consolidated net worth of the group is around USD 700 million. Indiabulls and its
group companies have attracted USD 500 million of equity capital in Foreign Direct
Investment (FDI) since March 2000. Some of the large shareholders of Indiabulls are
the largest financial institutions of the world such as Fidelity Funds, Goldman Sachs,
Merrill Lynch, Morgan Stanley and Farallon Capital.

In middle of 1999, when e-commerce was just about starting in India, Sameer Gehlaut
and his close IIT Delhi friend Rajiv Rattan got together and bought a defunct
securities company with a NSE membership and started offering brokerage services .
A Few months later, their friend Saurabh Mittal also joined them. By December 1999,
the company embarked on its journey to build one of the first online platforms in
India for offering internet brokerage services. In January 2000, the 3 founders
incorporated Indiabulls Financial Services and made it as the flagship company.

In mid 2000, Indiabulls Financial Services received venture capital funding from Mr
L.N. Mittal & Mr Harish Fabiani. In late 2000, Indiabulls Securities, a subsidiary of
Indiabulls Financial Services started offering online brokerage services and
simultaneously opened physical offices across India. By 2003, Indiabulls securities
had established a strong pan India presence and client base through its offices and on
the internet.

In September 2004, Indiabulls Financial Services went public with an IPO at Rs 19 a

share. In late 2004, Indiabulls Financial Services started its financing business with

26
consumer loans. In March 2005, Indiabulls Properties Private Ltd, a subsidiary of
Indiabulls Financial Services, participated in government auction of Jupiter Mills, a
defunct 11 acre textile mill owned by NTC in Lower Parel, Mumbai. Indiabulls
Properties private Ltd won the mill in auction and that purchase started Indiabulls real
estate business. A few months later, Indiabulls Real Estate company pvt ltd bought
Elphinstone mill in Lower Parel, another textile mill auctioned by NTC.

With real estate business gaining size, Indiabulls Financial Services demerged the real
estate business under Indiabulls Real Estate and each shareholder of Indiabulls
Financial Services received additional share of Indiabulls Real Estate through the
demerger. Subsequently, Indiabulls Financial Services also demerged Indiabulls
Securities and each shareholder of Indiabulls Financial Services also received a share
of Indiabulls Securities.

In year 2007, Indiabulls Real Estate incorporated a 100% subsidiary, Indiabulls

Power, to build power plants and started work on building Nashik & Amrawati
thermal power plants. Indiabulls Power went public in September 2009.

Today, Indiabulls Group has a networth of Rs 16,796 Crore & has a strong presence
in important sectors like financial services, power & real estate through independently
listed companies and Indiabulls Group continues its journey of building businesses
with strong cash flows.

27
 MANAGEMENT TEAM

Indiabulls Group

 Mr Rajiv Rattan - Vice Chairman

 Mr Saurabh Mittal - Vice Chairman

 Mr Gagan Banga - Group Spokesperson

 Mr Ashok Kacker - Group President

 Mr Saket Bahuguna - Group CLO

 Mr Ashok Sharma - Group CFO

 Mr Ajit Mittal - Group Director

 Mr Gurbans Singh - Group Director

 Mr Tejinderpal Singh Miglani - Group CIO

Indiabulls Financial Services Limited

 Mr Gagan Banga - CEO

 Mr Ashwini Kumar Hooda - DMD

Indiabulls Real Estate Limited

 Mr Vipul Bansal - CEO

 Mr Narendra Gehlaut - Joint MD

Indiabulls Power Limited

 Mr Ranjit Gupta - CEO

 Mr Murali Subramanian - COO

Indiabulls Securities Limited

 Mr Divyesh Shah - CEO

28
  Mr Vijay Babbar – DMD

Indiabulls supports Money life Foundation in Empowering

Investors

“Moneylife Foundation”  in collaboration with Indiabulls, recently organized an

‘Investor, Empower Yourself’ seminar, which was held at the lush Town & Country
Club at New Gurgaon, in the National Capital Region (NCR), on Saturday, 7th May
2013. This was the first occasion for Moneylife Foundation to venture into other
territories outside Maharashtra. Indiabulls played a major role in helping this event
happen successfully.

The event witnessed over 300 attendees not only from Gurgaon but also from other
parts of National Capital Region (NCR), Delhi, Allahabad, Ludhiana, Chandigarh &
other cities from northern region of India. The venue was fully packed with eager &
curious investors. “Moneylife Foundation” expressed its gratitude towards helpful
team of Indiabulls led by Mr. Gagan Banga, CEO - Indiabulls Financial Services Ltd,
for making this event such a huge success.

The event started with introductory remarks & guidance by Mr. Gagan Banga, CEO -
Indiabulls Financial Services Ltd. Mr. Veeresh Malik, Consulting Editor, Moneylife,
Delhi gave a brief introduction about Moneylife Foundation.Then audience was
guided by Sucheta Dalal, Trustee - Moneylife Foundation and Managing Editor-
Moneylife, on How to be Safe with your money & Debashis Basu, Trustee -
Moneylife Foundation and Editor- Moneylife about How to be smart with your
investments. Mr. Sachin Choudhary, Director & Business Head - Indiabulls Housing
Finance Ltd, talked about Do's and Don’ts of Housing Mortgages. Ms. Sucheta Dalal
also explained the importance & procedure of Wills & Nominations.

This event helped people in understanding how to become an aware and empowered
investor. The attendees included both finically literate & new investors. They posted
number of intelligent questions which were adequately answered by all the speakers.
Empowering today’s investors by creating awareness and guiding them in taking wise
decisions when it comes to money or investments was the main objective of ‘Investor,
Empower Yourself’ seminar.
29
During the Panel Discussion with the panel members Sucheta Dalal, Debashis Basu &
Sachin Choudhary, quite a few interesting & informative issues regarding Investments
were discussed. Mr. Monu Ratra, National Sales Manager - Indiabulls housing
Finance Ltd gave Vote of Thanks.

This event received many request and suggestions from audience about continuing
with such events all over India so that citizens of India will be more empowered
investors & ultimately nation will benefit from it. There were some requests from
audience to telecast further events live on television & internet so that those who are
unable to attend the event will also get the guidance. The knowledge shared about the
investments during the event was well appreciated by all.  

Moneylife Foundation has been instrumental in promoting financial literacy & pro-
customer advocacy in India.  Moneylife Foundation has been organizing such events
at the Moneylife Knowledge Centre in Mumbai, and also in various cities across
Maharashtra. The Foundation has completed 15 months of spreading financial literacy
& has hosted around 49 speakers and 61 events. Currently, more than 5,000 people
are members of the Foundation.

After the seminar, Indiabulls received feedbacks from some attendees congratulating
Indiabulls’ team about the success of seminar. Many of the attendees mentioned that
they are looking forward to such seminars in future.

Indiabulls has been participating in such Corporate Social Activities with many other
socially aware groups and trusts & Indiabulls is committed to continue in doing so in
future.

30
 Senior Vice President

Regional Manager

Branch Manager

Senior Sales Manager

Support System Sales Function

RM/SRM
Back Office Local Compliance

Executive Officer

ARM

Dealer

Organization Structure- Board of Directors:

31
Trading Products of Indiabulls Securities

Indiabulls Securities

Trading Products

Cash Account Intraday Account Margin Trading

India bulls Securities provide three products for trading. They are

 Cash Account

 Intraday Account

32
  Margin Trading (Mantra)

Cash Account: It provides the client to buy 4 times of cash balance in his trading account.

Intraday Product: It provides the client to buy 8 times of his cash balance in the trading
account.

Mantra Account: Also called as margin trading, is a special account to buy on leverage for a
longer duration

Indiabulls Financial Services Ltd

Indiabulls Financial Services Ltd. was incorporated in the year 2005.The Auditors of
Indiabulls Financial Services Ltd. are Deloitte, Haskins & Sells. The main activity of
this company is in relation to securities and stock brokerage. It was also responsible
for setting up one of India’s first trading platforms.

The subsidiaries of Indiabulls Financial Services Ltd. include:

 Indiabulls Capital Services Ltd.

 Indiabulls Commodities Pvt. Ltd.

 Indiabulls Credit Services Ltd.

 Indiabulls Finance Co. Pvt. Ltd

 Indiabulls Housing Finance Ltd.

 Indiabulls Insurance Advisors Pvt. Ltd.

 Indiabulls Resources Ltd.

 Indiabulls Securities Ltd.

33
 CHAPTER-3
REVIEW OF LITERATURE

34
 REVIEW OF LITERATURE

One of the most commonly used formulas in stats is Pearson’s correlation coefficient
formula. In fact, if you’re taking a basic stats class, this is the one you’ll probably use:

While the correlation coefficient measures a degree to which two variables are related,
it only measures the linear relationship between the variables. Nonlinear relationships
between two variables cannot be captured or expressed by the correlation coefficient.

A value of exactly 1.0 means there is a perfect positive relationship between the two
variables. For a positive increase in one variable, there is also a positive increase in
the second variable. A value of exactly -1.0 means there is a perfect negative
relationship between the two variables. This shows the variables move in opposite
directions; for a positive increase in one variable, there is a decrease in the second
variable. If the correlation is 0, this simply means there is no relationship between the
two variables. The strength of the relationship varies in degree based on the value of
the correlation coefficient. For example, a value of 0.2 indicates there is a positive
relationship between the two variables, but it is weak.

This type of statistic is useful in many ways in finance. For example, it can be helpful
in determining how well a mutual fund is behaving compared to its benchmark index,
or it can be used to determine how a mutual behaves in relation to another fund or
asset class. By adding a low or negatively correlated mutual fund to an existing
portfolio, diversification benefits are gained.

Calculation Details

The most common calculation is known as the Pearson product-moment correlation. It

is determined by first calculating the covariance of the two variables in question.
Next, the standard deviations of each variable must be calculated. To find the
correlation coefficient, take the covariance and divide it by the product of the two
variables' standard deviations.

35
Standard deviation is a measure of the dispersion of data from its average. Covariance
is a measure of how two variables change together, but its magnitude is unbounded so
it is difficult to interpret. By dividing covariance by the product of the two standard
deviations, a normalized version of the statistic is calculated. This is the correlation
coefficient.

Trading Center

Next Up Negative Correlation

Correlation Coefficient

Negative Correlation

Pearson Coefficient

Coefficient of Determination

Information Coefficient - IC

Benchmark For Correlation Values

Inverse Correlation

Variable Cost Ratio

Shadowing

Random Variable

36
Negative correlation is a relationship between two variables in which one variable
increases as the other decreases, and vice versa. In statistics, a perfect negative
correlation is represented by the value -1.00, while a 0.00 indicates no correlation and
a +1.00 indicates a perfect positive correlation. A perfect negative correlation means
the relationship that exists between two variables is negative 100% of the time.

BREAKING DOWN 'Negative Correlation'

Negative correlation is used in statistics to measure the amount that a change in one
variable can affect an opposite change in another variable. To quantify predictability
of the negative relationship between the two variables, analysts run a regression
analysis. This procedure provides analysts with a calculation of R-squared (R2),
which is the statistical measure of how well one variable predicts the value of another
variable. If the R2 between two separate items is 1, it means the independent variable
accurately predicts the dependent variable without error. An R2 of 0 implies that the
independent variable cannot predict the dependent variable. An R2 that falls between
0 and 1 measures the extent to which the independent variable predicts the dependent
variable. For example, if R2 is 0.4, this implies that the independent variable can
predict the dependent variable with 40% accuracy.

RETURN (X): (CURRENT PRICE –PREVIOUS PRICE) *100

PREVIOUS PRICE

37
 EQUITY ANALYSIS
Decisions like whether you should buy or sell when trading in the share
market is a difficult task to do. It requires split-hair analysis of the market. To do so
one also needs to have excellent understanding of the market. Equity analysis forms
an integral part of the share trading Experience. Equity analysis decides the stance one
would take in the share trading industry. Finding out the highs and lows in the market
and analyzing the equity is of utmost importance before making any sort of
investment. Technical analysis, fundamental analysis and others form a part of the
equity analysis.

Gives you rigorous analysis of the stock market get advice on whether you should buy
or sell or invest in a share. You will get technical analysis, history of technical
analysis, a fundamental analysis, about the roulette wheel and also on automated
trading. Find out the details from the site. You will surely get useful information from
here. Enrich yourself before you do that little trading. Visit the site.

This is the official website of India bulls. You can get your equity analysis here. They
have carefully selected and rated stocks for you on measures based on facts. They
update their equity analysis on a daily basis. So, you will get an updated version every
day. You will only have to be a member and every time you want an updated analysis,
you will have to log in and find out. However, if you are a new user, they have a
sample you can view online. Just follow the simple instructions and get acquainted
with their equity analysis procedure.

Find out from equity master about their trends in equity analysis. Find the current
listings, the day's market, the markets in motion and much more right here. You can
trust this site to give you authentic information. Find out the market trends from the
site before you plan on investment. Become a member and surely you will benefit
additionally from this. To find out more on equity analysis, visit their site.

National Stock Exchange of India is one of the most trusted names in the market.
They have been active in the market and a great analyzer of the latest trends. You will
find the top gainers and losers from their site. Get the trade verification, historical data
on equity analysis, risk management tips and a lot more from this site. Have a look at
their member's directory too. You can also become a member to avail their services.

38
Look for the details in this site. Visit the link below They offer easy to use technical
analysis prospecting tools that help in trading, online trading and stock investing.
They offer to analyze individual stocks, industry groups, sector and indices. Find out
how they do it from their site. Their methods have been explained in details. All that
you need to do is find out. Do this easily. Simply visit the link above and you will be
showered with information.

CORRELATION AND DEPENDENCE

This article is about correlation and dependence in statistical data. For other uses, see
correlation (disambiguation).

In statistics, dependence or association is any statistical relationship, whether causal

or not, between two random variables or two sets of data. Correlation is any of a
broad class of statistical relationships involving dependence, though in common usage
it most often refers to the extent to which two variables have a linear relationship with
each other. Familiar examples of dependent phenomena include the correlation
between the physical statures of parents and their offspring, and the correlation
between the demand for a product and its price.

Correlations are useful because they can indicate a predictive relationship that can be
exploited in practice. For example, an electrical utility may produce less power on a
mild day based on the correlation between electricity demand and weather. In this
example there is a causal relationship, because extreme weather causes people to use
more electricity for heating or cooling; however, correlation is not sufficient to
demonstrate the presence of such a causal relationship (i.e., correlation does not imply
causation).

Formally, dependence refers to any situation in which random variables do not satisfy
a mathematical condition of probabilistic independence. In loose usage, correlation
can refer to any departure of two or more random variables from independence, but
technically it refers to any of several more specialized types of relationship between
mean values. There are several correlation coefficients, often denoted ρ or r,
measuring the degree of correlation. The most common of these is the Pearson
correlation coefficient, which is sensitive only to a linear relationship between two
variables (which may exist even if one is a nonlinear function of the other). Other

39
correlation coefficients have been developed to be more robust than the Pearson
correlation – that is, more sensitive to nonlinear relationships. Mutual information can
also be applied to measure dependence between two variables. Sensitivity to the data
distribution

Further information: Pearson product-moment correlation coefficient § Sensitivity to

the data distribution

The degree of dependence between variables X and Y does not depend on the scale on
which the variables are expressed. That is, if we are analyzing the relationship
between X and Y, most correlation measures are unaffected by transforming X to a +
bX and Y to c + dY, where a, b, c, and d are constants (b and d being positive). This is
true of some correlation statistics as well as their population analogues. Some
correlation statistics, such as the rank correlation coefficient, are also invariant to
monotone transformations of the marginal distributions of X and/or Y.

Pearson/Spearman correlation coefficients between X and Y are shown when the two
variables' ranges are unrestricted, and when the range of X is restricted to the interval
(0,1).

Most correlation measures are sensitive to the manner in which X and Y are sampled.
Dependencies tend to be stronger if viewed over a wider range of values. Thus, if we
consider the correlation coefficient between the heights of fathers and their sons over
all adult males, and compare it to the same correlation coefficient calculated when the
fathers are selected to be between 165 cm and 170 cm in height, the correlation will
be weaker in the latter case. Several techniques have been developed that attempt to
correct for range restriction in one or both variables, and are commonly used in meta-
analysis; the most common are Thorndike's case II and case III equations.

Various correlation measures in use may be undefined for certain joint distributions of
X and Y. For example, the Pearson correlation coefficient is defined in terms of
moments, and hence will be undefined if the moments are undefined. Measures of
dependence based on quintiles are always defined. Sample-based statistics intended to
estimate population measures of dependence may or may not have desirable statistical
properties such as being unbiased or asymptotically consistent, based on the spatial
structure of the population from which the data were sampled

40
 NATIONAL STOCK EXCHANGE:

The National Stock Exchange of India Limited (NSE) is the leading stock
exchange of India, located in Mumbai.NSE was established in 1992 as the first
demutualized electronic exchange in the country. NSE was the first exchange in the
country to provide a modern, fully automated screen-based electronic trading system
which offered easy trading facility to the investors spread across the length and
breadth of the country.

National Stock Exchange has a total market capitalization of more than US$1.41
trillion, making it the world’s 12th-largest stock exchange as of March 2017.[1]
NSE's flagship index, the NIFTY 50, the 51 stock index (50 companies with 51
securities inclusive of DVR), is used extensively by investors in India and around the
world as a barometer of the Indian capital markets. However, only about 4% of the
Indian economy / GDP is actually derived from the stock exchanges in India.

NSE was set up by a group of leading Indian financial institutions at the behest of the
government of India to bring transparency to the Indian capital market. Based on the
recommendations laid out by the government committee, NSE has been established
with a diversified shareholding comprising domestic and global investors. The key
domestic investors include Life Insurance Corporation of India, State Bank of India,
IFCI Limited IDFC Limited and Stock Holding Corporation of India Limited. And the
key global investors are Gagil FDI Limited, GS Strategic Investments Limited, SAIF
II SE Investments Mauritius Limited, Aranda Investments (Mauritius) Pte Limited
and PI Opportunities Fund I.

NSE offers trading, clearing and settlement services in equity, equity derivatives, debt
and currency derivatives segments. It is the first exchange in India to introduce
electronic trading facility thus connecting together the investor base of the entire
country. NSE has 2500 VSATs and 3000 leased lines spread over more than 2000
cities across India.

The exchange was incorporated in 1992 as a tax-paying company and was recognized
as a stock exchange in 1993 under the Securities Contracts (Regulation) Act, 1956,
when P. V. Narasimha Rao was the Prime Minister of India and Manmohan Singh
was the Finance Minister. NSE commenced operations in the Wholesale Debt Market

41
(WDM) segment in June 1994. The capital market (equities) segment of the NSE
commenced operations in November 1994, while operations in the derivatives
segment commenced in June 2000.

Unlike countries like the United States where nearly 70% of the GDP is derived from
larger companies and the corporate sector, the corporate sector in India accounts for
only 12-14% of the national GDP (as of October 2017). Of these only 7,800
companies are listed of which only 4000 trade on the stock exchanges at BSE and
NSE. Hence the stocks trading at the BSE and NSE account for only around 4% of the
Indian economy, which derives most of its income related activity from the so called
unorganized sector and households.

How NSE brought about a paradigm shift in Financial market[edit]

NSE was mainly set up to bring in transparency in the markets. Instead of trading
membership being confined to a group of brokers, NSE ensured that anyone who was
qualified, experienced and met minimum financial requirements was allowed to trade.
[4] In this context, NSE was ahead of its times when it separated ownership and
management in the exchange under SEBI's supervision. The price information which
could earlier be accessed only by a handful of people could now be seen by a client in
a remote location with the same ease. The paper-based settlement was replaced by
electronic depository-based accounts and settlement of trades was always done on
time. One of the most critical changes was that a robust risk management system was
set in place, so that settlement guarantees could protect investors against broker
defaults.

NSE was also instrumental in creating the National Securities Depository Limited
(NSDL) which allows investors to securely hold and transfer their shares and bonds
electronically. It also allows investors to hold and trade in as few as one share or
bond. This not only made holding financial instruments convenient but more
importantly, eliminated the need for paper certificates and greatly reduced the
incidents of forged or fake certificates and fraudulent transactions that had plagued
the Indian stock market. The NSDL's security, combined with the transparency, lower
transaction prices and efficiency that NSE offered, greatly increased the attractiveness
of the Indian stock market to domestic and international investors.

42
The National Stock Exchange of India Limited (NSE) commenced trading in
derivatives with the launch of index futures on 12 June 2000. The futures and options
segment of NSE has made a global mark. In the Futures and Options segment, trading
in NIFTY 50[5] Index, NIFTY IT index, NIFTY Bank Index, NIFTY Next 50 index
and single stock futures are available. Trading in Mini Nifty Futures & Options and
Long term Options on NIFTY 50 are also available. The average daily turnover in the
F&O Segment of the Exchange during the financial year April 2013 to March 2014
stood at ₹1.52236 trillion (US$23 billion).

On 29 August 2011, National Stock Exchange launched derivative contracts on the

world’s most followed equity indices, the S&P 500 and the Dow Jones Industrial
Average. NSE is the first Indian exchange to launch global indices. This is also the
first time in the world that futures contracts on the S&P 500 index were introduced
and listed on an exchange outside of their home country, USA. The new contracts
include futures on both the DJIA and the S&P 500, and options on the S&P 500.

On 3 May 2012, the National Stock exchange launched derivative contracts (futures
and options) on FTSE 100, the widely tracked index of the UK equity stock market.
This was the first of its kind of an index of the UK equity stock market launched in
India. FTSE 100 includes 100 largest UK listed blue chip companies and has given
returns of 17.8 per cent on investment over three years. The index constitutes 85.6 per
cent of UK’s equity market cap.[6]

On 10 January 2013, the National Stock Exchange signed a letter of intent with the
Japan Exchange Group, Inc. (JPX) on preparing for the launch of NIFTY 50 Index
futures, a representative stock price index of India, on the Osaka Securities Exchange
Co., Ltd. (OSE), a subsidiary of JPX.

Moving forward, both parties will make preparations for the listing of yen-
denominated NIFTY 50[8] Index futures by March 2014, the integration date of the
derivatives markets of OSE and Tokyo Stock Exchange, Inc. (TSE), a subsidiary of
JPX. This is the first time that retail and institutional investors in Japan will be able to
take a view on the Indian markets, in addition to current ETFs, in their own currency
and in their own time zone. Investors will therefore not face any currency risk,
because they will not have to invest in dollar denominated or rupee denominated
contracts.

43
In August 2008, currency derivatives were introduced in India with the launch of
Currency Futures in USD–INR by NSE. It also added currency futures in Euros,
Pounds and Yen. The average daily turnover in the F&O Segment of the Exchange on
20 June 2013 stood at ₹419.2616 billion (US$6.2 billion) in futures and ₹273.977
billion (US$4.1 billion) in options, respectively.

Interest Rate Futures

In December 2013, exchanges in India received approval from market regulator SEBI
for launching interest rate futures (IRFs) on a single GOI bond or a basket of bonds
that will be cash settled. Market participants have been in favour of the product being
cash settled and being available on a single bond. NSE will launch the NSE Bond
Futures on 21 January on highly liquid 7.16 percent and 8.83 percent 10-year GOI
bonds. Interest Rate Futures were introduced for the first time in India by NSE on 31
August 2009, exactly one year after the launch of Currency Futures. NSE became the
first stock exchange to get an approval for interest-rate futures, as recommended by
the SEBI-RBI committee.

Debt Market

On 13 May 2013, NSE launched India's first dedicated debt platform to provide a
liquid and transparent trading platform for debt related products.

The Debt segment provides an opportunity to retail investors to invest in corporate

bonds on a liquid and transparent exchange platform. It also helps institutions who are
holders of corporate bonds. It is an ideal platform to buy and sell at optimum prices
and help Corporates to get adequate demand, when they are issuing the bonds.

Trading schedule

Trading on the equities segment takes place on all days of the week (except Saturdays
and Sundays and holidays declared by the Exchange in advance). The market timings
of the equities segment are:

44
(1) Pre-open session

Order entry & modification Open: 09:00 hrs

Order entry & modification Close: 09:08 hrs*

*with random closure in last one minute. Pre-open order matching starts immediately
after close of pre-open order entry.

(2) Regular trading session

Normal/Retail Debt/Limited Physical Market Open: 09:15 hrs

Normal/Retail Debt/Limited Physical Market Close: 15:30 hrs.

Exchange Traded Funds and Derivatives on National Stock Exchange[edit]

The following products are trading on CNX Nifty Index in the Indian and
international Market:

7 Asset Management Companies have launched exchange-traded funds on CNX Nifty

Index which are listed on NSE

15 index funds have been launched on CNX Nifty Index

Unit linked products have been launched on CNX Nifty Index by several insurance
companies in India

World Indices

Derivatives Trading on NIFTY 50 Index:

Futures and Options trading on CNX Nifty Index

Trading in NIFTY 50 Index Futures on Singapore Stock Exchange(SGX)

Trading in NIFTY 50 Index Futures on Chicago Mercantile Exchange(CME)

Technology

NSE’s trading systems, is a state of-the-art application. It has an up time record of

99.99% and processes more than 450 million messages every day with sub
millisecond response time.[10]

45
NSE has taken huge strides in technology in these 20 years. In 1994, when trading
started, NSE technology was handling 2 orders a second. This increased to 60 orders a
second in 2001. Today NSE can handle 1, 60,000 orders/messages per second, with
infinite ability to scale up at short notice on demand, NSE has continuously worked
towards ensuring that the settlement cycle comes down. Settlements have always been
handled smoothly. The settlement cycle has been reduced from T+3 to T+2/T+1.

Financial Literacy[edit]

NSE has collaborated with several universities like Gokhale Institute of Politics &
Economics (GIPE), Pune, Bharati Vidyapeeth Deemed University (BVDU), Pune,
Guru Gobind Singh Indraprastha University, Delhi, Ravenshaw University of Cuttack
and Punjabi University, Patiala, among others to offer MBA and BBA courses. NSE
has also provided mock market simulation software called NSE Learn to trade (NLT)
to develop investment, trading and portfolio management skills among the students.
The simulation software is very similar to the software currently being used by the
market professionals and helps students to learn how to trade in the markets.

NSE also conducts online examination and awards certification, under its
Certification in Financial Markets (NCFM) programmes. At present, certifications are
available in 46 modules, covering different sectors of financial and capital markets,
both at the beginner and advanced levels. The list of various modules can be found at
the official site of NSE India. In addition, since August 2009, it offered a short-term
course called NSE Certified Capital Market Professional (NCCMP). The NCCMP or
NSE Certified Capital Market Professional is a 100-hour program for over 3–4
months, conducted at the colleges, and covers theoretical and practical training in
subjects related to the capital markets. NCCMP covers subjects like equity markets,
debt markets, derivatives, macroeconomics, technical analysis and fundamental
analysis. Successful candidates are awarded joint certification from NSE and the
concerned.

NSE Vs Moneylife

On 22 July 2015, NSE filed a ₹1 billion (US$15 million) suit against Moneylife.
However, on 9 September 2015, the Bombay High Court dismissed the case and fined
NSE ₹5 million (US$74,000) in this defamation case against Moneylife

46
(www.moneylife.in). The High Court asked NSE to pay ₹150,000 (US$2,200) to each
journalist Debashis Basu and Sucheta Dalal and the remaining ₹4.7 million
(US$70,000) to two hospitals. On 8 July 2015, Sucheta Dalal wrote an article on
Moneylife alleging that some NSE employees were leaking sensitive data related to
high-frequency trading or co-location servers to a select set of market participants so
that they could trade faster than their competitors. NSE alleged defamation in the
article by Moneylife.

47
 CHAPTER-4
DATA ANALYSIS
INTERPRETATION

48
 TABLE -1

THE BELOW TABLE SHOWS MAHINDRA AND MAHINDRA SIX MONTHS

(JANUARY- JUNE) WEEKLY PRICES FOR THE YEAR 2017

Date Open Close RETURN(x)

4-Jan-17 34.45 35.89 4.18
11-Jan-17 37 37.88 2.38
19-Jan-17 37.99 41.35 8.84
25-Jan-17 41.25 40.41 -2.04
1-Feb-17 40.22 40.26 0.10
8-Feb-17 40 39.25 -1.88
16-Feb-17 39.56 40.23 1.69
22-Feb-17 40.49 43.43 7.26
29-Feb-17 43.47 44.58 2.55
7-Mar-17 44.23 44.35 0.27
14-Mar-17 44.19 44.87 1.54
21-Mar-17 44.65 43.48 -2.62
28-Mar-17 43.51 42.96 -1.26
4-Apr-17 43.1 39.68 -7.94
11-Apr-17 39.75 40.64 2.24
18-Apr-17 40.73 40.96 0.56
25-Apr-17 40.78 39.59 -2.92
2-May-17 39.78 37.65 -5.35
9-May-17 37.06 31.22 -15.76
16-May-17 31.47 31.29 -0.57
23-May-17 31.31 32.72 4.50
31-May-17 32.63 34.33 5.21
6-Jun-17 34.52 33.24 -3.71
13-Jun-17 32.53 33.23 2.15
20-Jun-17 33.6 32.08 -4.52
27-Jun-17 31.87 33.6 5.43

49
 GRAPH -1

RETURN (X): (CURRENT PRICE –PREVIOUS PRICE) *100

PREVIOUS PRICE

INTERPRETATION: From the above graph it was found that returns of

MAHINDRA AND MAHINDRA for the year 2017 graph tells as May -9 shows -
15.76 it describes huge decline of equity returns in this month investor should prepare
for recovery of the return through equity research from analysts.

50
Date Open Close RETURN(x)
5-Jul-17 33.33 34.36 3.09
11-Jul-17 34.51 34.68 0.49
18-Jul-17 34.59 35.28 1.99
25-Jul-17 35.41 35.83 1.19
1-Aug-17 35.92 34.11 -5.04
8-Aug-17 34.71 39.82 14.72
15-Aug-17 39.98 40.3 0.80
22-Aug-17 40.3 38.56 -4.32
29-Aug-17 38.64 36.64 -5.18
6-Sep-17 36.51 35.48 -2.82
12-Sep-17 35.27 35.54 0.77
19-Sep-17 35.56 36.62 2.98
26-Sep-17 36.4 37.05 1.79
3-Oct-17 36.97 38.04 2.89
10-Oct-17 38.22 35.57 -6.93
17-Oct-17 35.53 36.51 2.76
24-Oct-17 36.69 35.56 -3.08
31-Oct-17 36.02 36.85 2.30
7-Nov-17 37.23 41.36 11.09
14-Nov-17 41.1 43.03 4.70
21-Nov-17 43.14 44.14 2.32
28-Nov-17 43.75 42.48 -2.90
5-Dec-17 42.62 42.44 -0.42
12-Dec-17 42.24 37.47 -11.29
19-Dec-17 37.36 36.48 -2.36
27-Dec-17 36.67 35.81 -2.35
THE BELOW TABLE SHOWS MAHINDRA AND MAHINDRA SIX
MONTHS (JULY-DECEMBER)WEEKLY PRICES FOR THE YEAR 2017

TABLE -2

51
 RETURN (X): (CURRENT PRICE –PREVIOUS PRICE) *100
PREVIOUS PRICE

INTERPRETATION: From the above graph it was found that returns of

MAHINDRA AND MAHINDRA for the year 2017 graph tells as July -5 shows -
15.76 it describes huge decline of equity returns in this month investor should prepare
for recovery of the return through equity research from analysts.

52
 DESCRIPTIVE STATISTICS

Mean 0.14

Standard Deviation 5.15

Sample Variance 26.49

MEAN: ∑X/N =7.52/52 =0.14

Variance: (X-X)2 = 1352/52 =25.98

SD: √⌐ = √25.98 =5.15

53
 TABLE -3

THE BELOW TABLE SHOWS MARUTHI SIX MONTHS (JANUARY- JUNE)

WEEKLY PRICES FOR THE YEAR 2017

Date Open Close RETURNS

1-Jan-17 4630.5 4635.05 0.10
4-Jan-17 4640 4215.65 -9.15
11-Jan-17 4210 4273.3 1.50
18-Jan-17 4287.55 4107.35 -4.20
25-Jan-17 4130 4097.45 -0.79
1-Feb-17 4076 3723.25 -8.65
8-Feb-17 3734 3549.4 -4.94
15-Feb-17 3565 3581.05 0.45
22-Feb-17 3548 3409.05 -3.92
29-Feb-17 3430 3564.8 3.93
7-Mar-17 3564.8 3638.65 2.07
14-Mar-17 3666 3629.55 -0.99
21-Mar-17 3611 3735.7 3.45
28-Mar-17 3741.1 3723.25 -0.48
4-Apr-17 3750 3428.85 -8.56
11-Apr-17 3459 3734.6 7.97
18-Apr-17 3734.6 3817.35 2.22
25-Apr-17 3815 3794.95 -0.53
2-May-17 3795 3819.5 0.65
9-May-17 3833.3 3844.6 0.29
16-May-17 3875 3947.05 1.86
23-May-17 3950 4141.35 4.84
30-May-17 4141 4220.1 1.91
6-Jun-17 4214 4117.6 -2.29
13-Jun-17 4093.9 4109.9 0.39
20-Jun-17 4078 4069.15 -0.22
27-Jun-17 4069.15 4165.8 2.38

54
 RETURN (X): (CURRENT PRICE –PREVIOUS PRICE) *100
PREVIOUS PRICE

INTERPRETATION: The above graph found that returns of MARUTI for the year
2017 here graph tells APR-4 shows -8.56 it describes huge decline of equity returns in
this month investor should prepare for recovery of the return through equity research
from analysts.

55
 THE BELOW TABLE SHOWS MARUTHI SIX MONTHS (JULY-
DECEMBER) WEEKLY PRICES FOR THE YEAR 2017
TABLE -4

Date Open Close RETURNS

4-Jul-17 4166 4155.05 -0.26
11-Jul-17 4190 4463.8 6.53
18-Jul-17 4484 4413.4 -1.57
25-Jul-17 4380 4755.2 8.57
1-Aug-17 4792 4948.35 3.26
8-Aug-17 4960.35 4896.65 -1.28
15-Aug-17 4896.65 4899.4 0.06
22-Aug-17 4901 4920.7 0.40
29-Aug-17 4928 5158.5 4.68
5-Sep-17 5158.5 5401 4.70
12-Sep-17 5319.4 5565.95 4.63
19-Sep-17 5580 5602.2 0.40
26-Sep-17 5603 5479.2 -2.21
3-Oct-17 5628 5682.45 0.97
10-Oct-17 5709 5681.4 -0.48
17-Oct-17 5713 5649.8 -1.11
24-Oct-17 5665 5875.3 3.71
31-Oct-17 5875.3 5714.65 -2.73
7-Nov-17 5760 5136.15 -10.83
14-Nov-17 5136.15 4960.2 -3.43
21-Nov-17 4999.8 4873.6 -2.52
28-Nov-17 4873 5068.45 4.01
5-Dec-17 5055 5235.8 3.58
12-Dec-17 5235 5183.75 -0.98
19-Dec-17 5150 5193.25 0.84
26-Dec-17 5189 5323 2.58

56
 RETURN (X): (CURRENT PRICE –PREVIOUS PRICE) *100
PREVIOUS PRICE

INTERPRETATION: From the above graph it was found that returns of MARUTI
for the year 2017e graph tells as NOV-07 shows -10.83 it describes huge decline of
equity returns in this month investor should prepare for recovery of the return through
equity research from analysts.

57
 DESCRIPTIVE ANALYSIS FOR MARUTHI 2017

0.20

Mean

15.9

Standard Deviation

4.00

Sample Variance

MEAN: ∑X/N =10.80/52 =0.20

Variance: (X-X)2 = 832/52 =15.98

SD: √⌐ = √15.98 =3.99

58
 TABLE -5
THE BELOW TABLE SHOWS TATA MOTORS SIX MONTHS
( JANUARY-JUNE)WEEKLY PRICES FOR THE YEAR 2017)
Date Open Close RETURNS
1-Jan-17 393.8 401.65 1.99
4-Jan-17 400 353.45 -11.64
11-Jan-17 350 341.55 -2.41
18-Jan-17 339 339.35 0.10
25-Jan-17 345 336.7 -2.41
1-Feb-17 340 337.25 -0.81
8-Feb-17 337.85 298.65 -11.60
15-Feb-17 299.5 317.5 6.01
22-Feb-17 320.5 302.2 -5.71
29-Feb-17 302.2 343.55 13.68
7-Mar-17 343.55 354 3.04
14-Mar-17 359 365.9 1.92
21-Mar-17 365.65 376.95 3.09
28-Mar-17 376 379.55 0.94
4-Apr-17 385.35 372.2 -3.41
11-Apr-17 373.25 408.55 9.46
18-Apr-17 408.85 416.95 1.98
25-Apr-17 417.8 408.85 -2.14
2-May-17 410 398.7 -2.76
9-May-17 401 390 -2.74
16-May-17 393.8 384.55 -2.35
23-May-17 388 403.5 3.99
30-May-17 405.4 453.9 11.96
6-Jun-17 457.25 457.2 -0.01
13-Jun-17 450 463.2 2.93
20-Jun-17 463.5 449 -3.13
27-Jun-17 451 457.9 1.53

59
 RETURN (X): (CURRENT PRICE –PREVIOUS PRICE) *100
PREVIOUS PRICE

INTERPRETATION: From the above graph it was found that returns of TATA
MOTORS for the year 2017 graph tells as JAN -4 shows -11.64 it describes huge
decline of equity returns in this month investor should prepare for recovery of the
return through equity research from analysts.

60
 TABLE -6
THE BELOW TABLE SHOWS TATA MOTORS SIX MONTHS (JULY-
DECEMBER) WEEKLY PRICES FOR THE YEAR 2017
Date Open Close RETURNS
4-Jul-17 467.9 465.2 -0.58
11-Jul-17 471.1 492.9 4.63
18-Jul-17 496.9 506.4 1.91
25-Jul-17 506.5 503 -0.69
1-Aug-17 504 516.35 2.45
8-Aug-17 517.9 515.25 -0.51
15-Aug-17 515.25 510 -1.02
22-Aug-17 510 503.65 -1.25
29-Aug-17 520 549.8 5.73
5-Sep-17 549.8 573 4.22
12-Sep-17 557.25 548.9 -1.50
19-Sep-17 553.8 553.35 -0.08
26-Sep-17 552 534.75 -3.13
3-Oct-17 542.9 565.7 4.20
10-Oct-17 570.2 555.45 -2.59
17-Oct-17 557.5 544.55 -2.32
24-Oct-17 545.1 535.85 -1.70
31-Oct-17 535.85 512.1 -4.43
7-Nov-17 513 507.4 -1.09
14-Nov-17 507.4 471 -7.17
21-Nov-17 468.5 453.25 -3.26
28-Nov-17 454.8 433.05 -4.78
5-Dec-17 434.6 464.05 6.78
12-Dec-17 463.5 472.5 1.94
19-Dec-17 471 466.15 -1.03
26-Dec-17 464.25 471.35 1.53

61
RETURN (X): (CURRENT PRICE –PREVIOUS PRICE) *100
PREVIOUS PRICE

INTERPRETATION: From the above graph it was found that returns of TATA
MOTORS for the year 2017 graph tells as NOV-14 shows -7.17 it describes huge
decline of equity returns in this month investor should prepare for recovery of the
return through equity research from analysts

62
 DESCRIPTIVE ANALYSIS FOR TATA MOTORS 2017

0.15

Mean
4.68

Standard Deviation

21.95

Sample Variance

MEAN: ∑X/N =7.79/53 =0.15

Variance: (X-X)2 = 1163/53 =21.95

SD: √⌐ = √21.95 =4.68

63
 TABLE -7
THE BELOW TABLE SHOWS NIFTY & TATA CORRELATION FOR (JANUARY-
JUNE ) 2017

TATA NIFTY
MOTORS RETURNS
S.NO RETURNS (X) (Y) X*Y X2 Y2
1 1.99 -4.08 -8.12 3.96 16.65
2 -11.64 -1.19 13.85 135.49 1.42
3 -2.41 0.03 -0.07 5.81 0.00
4 0.1 1.27 0.13 0.01 1.61
5 -2.41 -1.32 3.18 5.81 1.74
6 -0.81 -6.79 5.50 0.66 46.10
7 -11.6 2.17 -25.17 134.56 4.71
8 6.01 -2.48 -14.90 36.12 6.15
9 -5.71 6.17 -35.23 32.60 38.07
10 13.68 0.32 4.38 187.14 0.10
11 3.04 0.82 2.49 9.24 0.67
12 1.92 1.28 2.46 3.69 1.64
13 3.09 -0.36 -1.11 9.55 0.13
14 0.94 -2.3 -2.16 0.88 5.29
15 -3.41 3.6 -12.28 11.63 12.96
16 9.46 -0.11 -1.04 89.49 0.01
17 1.98 -0.57 -1.13 3.92 0.32
18 -2.14 -1.14 2.44 4.58 1.30
19 -2.76 0.77 -2.13 7.62 0.59
20 -2.74 -1.04 2.85 7.51 1.08
21 -2.35 4.39 -10.32 5.52 19.27
22 3.99 0.66 2.63 15.92 0.44
∑XY =- (∑X )=711. (∑Y )=160.2
2 2

  ∑×= -1.78 ∑Y = 0.1 73.75 71 6

64
N 22    

N∑×2 15657.5276    

(∑×)2 15683.70    

(∑Y)2 160.26    

N∑Y2 3525.7772    

       

N(∑xy) -1722.5    

(∑×)(∑Y) -0.178 -1722.322  

N∑×2-(∑×)2 -26.17 -88075.51708 R= 0.02

N∑Y2 -(∑Y)2 3355.51    

R = -94.5032--0.178*0.1

√ (15657.5276-15683.70)( 3525.7772-170.26)

= 0.02.

65
 TABLE -8

THE BELOW TABLE SHOWS TATA MOTORS & NIFTY

CORRELATION FOR

(JULY-DECEMBER) 2017

S. TATA NIFTY
N MOTORS RETURNS
O RETURNS (X) (Y) X*Y X2 Y2
1 -0.58 -0.71 0.41 0.34 0.50
2 4.63 0.84 3.89 21.44 0.71
3 1.91 -0.33 -0.63 3.65 0.11
4 -0.69 3.59 -2.48 0.48 12.89
5 2.45 -0.64 -1.57 6.00 0.41
6 -0.51 1.52 -0.78 0.26 2.31
7 -1.02 -0.27 0.28 1.04 0.07
8 -1.25 1.39 -1.74 1.56 1.93
9 5.73 0.33 1.89 32.83 0.11
10 4.22 -1.39 -5.87 17.81 1.93
11 -1.5 -0.04 0.06 2.25 0.00
12 -0.08 -1.09 0.09 0.01 1.19
13 -3.13 2.63 -8.23 9.80 6.92
14 4.2 0.16 0.67 17.64 0.03
15 -2.59 0.54 -1.40 6.71 0.29
16 -2.32 0.49 -1.14 5.38 0.24
17 -1.7 -2.23 3.79 2.89 4.97
18 -4.43 0.36 -1.59 19.62 0.13
19 -1.09 -1.74 1.90 1.19 3.03
20 -7.17 0.93 -6.67 51.41 0.86
21 -3.26 -0.82 2.67 10.63 0.67
22 -4.78 -2.54 12.14 22.85 6.45

∑XY = - (∑Y)2=45.
  ∑×= -12.96 ∑Y = 0.98 4.2956 (∑×) 235.77
2=
755

66
N 22    
N∑×2 5187.072    
(∑×)2 5207.64    
(∑Y)2 160.26    
N∑Y2 3525.7772    
       
N(∑xy) -94.5032    
(∑×)(∑Y) -12.7008 -81.8024  
-
N∑×2-(∑×)2 -20.57 69228.63532 R= 0.2
N∑Y2 -(∑Y)2 3365.51    

r = -94.5032-(12.96*0.9)

√ (5187.072-5207.64)( 3525.772-170.26)

=0.2

67
 THE BELOW TABLE SHOWS NIFTY & MARUTHI CORRELATION FOR

(JANUARY-JUNE) 2017

TABLE -9

MARUTHI NIFTY
RETURNS RETURNS
sS.NO (X) (Y) X*Y X2 Y2
1 0.1 -4.08 -0.41 0.01 16.65
2 -9.15 -1.19 10.89 83.72 1.42
3 1.5 0.03 0.05 2.25 0.00
4 -4.2 1.27 -5.33 17.64 1.61
5 -0.79 -1.32 1.04 0.62 1.74
6 -8.65 -6.79 58.73 74.82 46.10
7 -4.94 2.17 -10.72 24.40 4.71
8 0.45 -2.48 -1.12 0.20 6.15
9 -3.92 6.17 -24.19 15.37 38.07
10 3.93 0.32 1.26 15.44 0.10
11 2.07 0.82 1.70 4.28 0.67
12 -0.99 1.28 -1.27 0.98 1.64
13 3.45 -0.36 -1.24 11.90 0.13
14 -0.48 -2.3 1.10 0.23 5.29
15 -8.56 3.6 -30.82 73.27 12.96
16 7.97 -0.11 -0.88 63.52 0.01
17 2.22 -0.57 -1.27 4.93 0.32
18 -0.53 -1.14 0.60 0.28 1.30
19 0.65 0.77 0.50 0.42 0.59
20 0.29 -1.04 -0.30 0.08 1.08
21 1.86 4.39 8.17 3.46 19.27
22 4.84 0.66 3.19 23.43 0.44

∑×Y (∑×)2=421
  ∑×=-12.88 ∑Y =0.1 =9.7002 .28 (∑y)2=160.27

68
N 22    

N∑×2 8285.772    

(∑×)2 8306.34    

(∑Y)2 160.26    

N∑Y2 3525.7772    

       

N(∑xy) 432.7664    

(∑×)(∑Y) 15.19 417.5764  

N∑×2-(∑×)2 -20.57 -69228.63532 -0.0060

N∑Y2 -(∑Y)2 3345.51    

r= 432.7664-(15.5-0.98) = -0.0060

√ (8285.772- 8306.34)( 3525.772-170.26)

69
 TABLE -10

THE BELOW TABLE SHOWS NIFTY & MARUTHI CORRELATION FOR

(JULY-DECEMBER)
2017
MARUTHI NIFTY
S.NO RETURNS (X) RETURNS (Y) X*Y X2 Y2
1 -0.26 -0.71 0.18 0.07 0.50
2 6.53 0.84 5.49 42.64 0.71
3 -1.57 -0.33 0.52 2.46 0.11
4 8.57 3.59 30.77 73.44 12.89
5 3.26 -0.64 -2.09 10.63 0.41
6 -1.28 1.52 -1.95 1.64 2.31
7 0.06 -0.27 -0.02 0.00 0.07
8 0.4 1.39 0.56 0.16 1.93
9 4.68 0.33 1.54 21.90 0.11
10 4.7 -1.39 -6.53 22.09 1.93
11 4.63 -0.04 -0.19 21.44 0.00
12 0.4 -1.09 -0.44 0.16 1.19
13 -2.21 2.63 -5.81 4.88 6.92
14 0.97 0.16 0.16 0.94 0.03
15 -0.48 0.54 -0.26 0.23 0.29
16 -1.11 0.49 -0.54 1.23 0.24
17 3.71 -2.23 -8.27 13.76 4.97
18 -2.73 0.36 -0.98 7.45 0.13
19 -10.83 -1.74 18.84 117.29 3.03
20 -3.43 0.93 -3.19 11.76 0.86
21 -2.52 -0.82 2.07 6.35 0.67
22 4.01 -2.54 -10.19 16.08 6.45
  ∑×= 15.5 ∑Y = 0.98 ∑×Y=19.6712 (∑×)2 =376.626 (∑y)2 =s46.72

70
N 22    

N∑×2 9268.16    

(∑×)2 9294.33    

(∑Y)2 160.26    

N∑Y2 3525.7772    

       

N(∑xy) 213.4044    

(∑×)(∑Y) -1.288 214.6924  

N∑×2-(∑×)2 -26.17 -88075.51708 -0.0024

N∑Y2 -(∑Y)2 3323.51    

r = 213.4044-(15.5*0.98)

√ (9268.16- 9294.3)( 3525.772-170.26)

= -0.024

71
 TABLE -11

THE BELOW TABLE SHOWS NIFTY & MAHINDRACORRELATION FOR

(JAN-JUNE) 2017
S.N MAHINDRA RETURNS NIFTY RETURNS
O (X) (Y) X*Y X2 Y2
-
1 4.18 -4.08 17.05 17.47 16.63
2 2.38 -1.19 -2.83 5.66 1.42
3 8.84 0.03 0.25 78.22 0.00
4 -2.04 1.27 -2.58 4.15 1.61
5 0.10 -1.32 -0.13 0.01 1.75
6 -1.88 -6.79 12.74 3.52 46.14
7 1.69 2.17 3.68 2.87 4.72
-
8 7.26 -2.48 18.04 52.72 6.17
9 2.55 6.17 15.75 6.52 38.05
10 0.27 0.32 0.09 0.07 0.10
11 1.54 0.82 1.26 2.37 0.67
12 -2.62 1.28 -3.35 6.87 1.63
13 -1.26 -0.36 0.46 1.60 0.13
14 -7.94 -2.30 18.26 62.96 5.30
15 2.24 3.60 8.06 5.01 12.95
16 0.56 -0.11 -0.06 0.32 0.01
17 -2.92 -0.57 1.66 8.52 0.32
18 -5.35 -1.14 6.11 28.67 1.30
- 248.3
19 -15.76 0.77 12.12 2 0.59
20 -0.57 -1.04 0.60 0.33 1.08
21 4.50 4.39 19.75 20.28 19.23
22 5.21 0.66 3.46 27.14 0.44
583.6 160.2
  1.00 0.08 35.95 0 6
  ∑× ∑Y ∑×Y (∑×) (∑y)
2 2

72
N 22
N∑×2 12839.13
(∑×)2 583.60
(∑Y)2 160.26
N∑Y2 3525.82
 
N(∑xy) 790.95
(∑×)(∑Y) 0.076202363 790.88
N∑×2-(∑×)2 12255.54 8889.98 0.09
N∑Y2 -(∑Y)2 3365.56

r = 790.95-(1.00*0.08)

√ (12839.13- 583.60)( 3525.82-170.26)

= 0.09

73
 CHAPTER V

FINDINGS, SUGGESTIONS & CONCLUSION

74
 FINDINGS

From the data analysis and interpretations of the ratios of three companies’ viz. Tata
Motors, Maruti Suzuki and Mahindra and Mahindra, the following findings have been
given:

 The three companies were performing well till 2017 with a positive trend in
the earnings. By analyzing the current trend of Indian Economy and
Automobile Industry I have found that being a developing economy there is
lot of scope for growth and this industry still has to cross many levels so there
are huge opportunities to invest in and this is being proved as more and more
foreign companies are setting up there ventures in India. Increase in income
level, increase in consumer demand, technology development, globalization,
foreign investments are few of the opportunities which the industry has to
explore for developing the economy.

75
 SUGGESTIONS

By analyzing the automobile industry with the help of fundamental analysis, it has
been revealed that this industry has a lot of potential to grow. So recommending
investing in Automobile industry with no doubt is going to be a good and smart
option because this industry is booming like never before not only in India but all
over the world. The three giants of Indian Automobile industry viz. TATA Motors,
Maruti Suzuki and Mahindra and Mahindra have outperformed in the industry.

The global turmoil in financial markets has affected Maruti also. The company is
maintaining a stable position. Its sales have grown over past five years. Inspite of the
general economic slowdown, the sales of Maruti Suzuki increased from Rs 21200
Crores to Rs 23381 Crores. As it is maintaining a stable position, it can be
recommended that for now Maruti share price shows that it’s a time to hold the
position or buy more shares as there is scope of further rise in share prices. Despite
the challenging business environment, Mahindra has maintained its upward sales
level. Its Return on Investment is much higher compared to TATA and Maruti. The
dividend per share is rs.10 which is higher amongst the three companies. The
company has potential to grow.

It would be the best option for the investor. Investing in Maruti Suzuki for long time
could be a good option whereas in TATA motors there is a chance of getting
correction, as it already went on high side in a very short period of time and is
experiencing a downfall from 2008. Holding the shares for long time could be a
wrong step and at this point of time those who invested earlier can book their profits.
As Mahindra’s shares are undervalued, the investor can buy these shares. This is
because a relatively lower P/E would save investors from paying a very high price
that does not justify the value of an investment.

76
 CONCLUSION

The collapse in market place witnessed unprecedented turbulence in the wake of

global financial meltdown. A runaway inflation touching a high point of 12% early in
the year, the tight monetary policies followed by the authorities for most of the year to
control inflation with the consequent high interest rates and weak consumer demand,
have collectively had a devastating effect on the automotive sector. During the
financial year 2012 TO 2017 the there is downfall in the growth of the company. The
main reason behind this downfall is because of the global recession. The downfall of
net profit during the financial year 2012 -2013 is 29.6% over the financial year 2012 -
2017.

TATA Motors, which was trying to consolidate its leadership position in the market,
also had to face the impact of global meltdown. Amid the crippling economic crisis,
Tata purchased Britain’s Jaguar Land Rover (JLR) from Ford Motor Company.
Acquiring JLR saddled Tata with some tough losses. Dividends and earnings remain
low.

Inspite of it being a tough year for all the companies across the globe and in India,
Mahindra has given a satisfactory performance. At present its shares are undervalued
giving it a potential for growth. Global recession had a dampener effect on the growth
of automobile industry but it was a short term phenomenon. The industry is bouncing
back. One factor favoring this point is that India has become a hot destination for
companies of diverse nature to invest in. Cut throat competition among top
companies, lots of new car and vehicle model launches at regular intervals keeps the
Indian auto sector moving.

A continuous effort at cost cutting and improving productivity will help the
companies in making reasonable profits despite the impact of higher commodity
prices and weaker rupee. The analysis gives an optimistic view about the industry and
its growth which recommends the investors to keep a good watch on the major players
to benefit in terms of returns on their investments.

77
BIBLIOGRAPHY

 www.nseindia.com
 www.bseindia.com
 www.investopedia.com
 www.moneycontrol.com
 www.indiainfoline.com
 www.sebi.gov.in
 www.tatamotors.com
 www.marutisuzuki.com
 www.mahindra.com
 www.yahoofinance.com

78