Equity Investment and Economic growth of India & Market stratrgies of Religare

SUMMER TRANING REPORT

Project Title:

EQUITY INVESTMENT & ECNOMIC GROWTH IN INDIA (2000-2008) AND

MARKETING STRATEGIES OF RELIGARE

Name: Chandan Parsad

MBA (SEM)

Roll NO. 06

Enrollment No 0061189908

Advisor: Mary Jecintha

(Lecturer)

CDAC Noida

Supervisor: Amandeep Shaney (AVP)

RELIGARE

June01- july31

DECLARATION

I hereby declare that this Project Report entitled: EQUITY INVESTMENT &

ECNOMIC GROWTH IN INDIA (2000-2008) AND MARKETING STRATEGIES

OF RELIGARE submitted by me to the GGSIPU Delhi, is a bonafide work

undertaken by me and it is not submitted to any other University or Institution for

the award of any degree diploma / certificate or published any time before.

Name: Chandan Parsad Signature of the Student

Enrollment No: 0061189908

Semester :

Date :

Certificate

This is to certify that the project report entitled

“EQUITY INVESTMENT & ECNOMIC GROWTH IN INDIA (2000-2008) AND

MARKETING STRATEGIES OF RELIGARE” done by Mr. Chandan Parsad

enrollment No 0061189908 is an authentic work carried out by him at RELIGARE

under my guidance. The matter embodied in this project work has not been

submitted earlier for the award of any degree or diploma to the best of my

knowledge and belief.

Date: Signature of the Supervisor

Name of the Guide: Amandeep Shaney

Designation : (AVP)

Organization Name: RELIGARE

Address : G-16, Marina Arcade

Connaught Place

Delhi-110001

Signature of the Internal Guide

(Mary Jecintha)

FINAL APPRAISAL PERFORMA

Name of Student: Chandan Parsad

Roll No: 0061189908

Project : EQUITY INVESTMENT & ECNOMIC GROWTH IN INDIA (2000-2008) AND


Name of Organization: RELIGARE

Address: G-16, Marina Arcade Connaught Place Delhi- 110001

Supervisor: Amandeep Shaney

Phone No: 9871952726

Period of evaluation: From _________To _________

Sr.No Criteria Marks Awarded

(each out of 10)

1. Punctuality

2. Regularity of Work

3. Improvement in Communication Skills

4 Improvement in Learning

5. Improvement in confidence

6. Leadership/Team Work

7. Self motivation

8. Initiative & Dedication

9 Discipline & Sincerity

10 Problem Solving Capability

Grand total

Signature of Project Supervisor

ACKNOWLEDGEMENTS

First, I thank my Supervisor Mr.Amandeep Shaney (AVP) for his continuous

support to making this project Mr. Amandeep Shaney (AVP) was always there to

listen and to give advice. He is responsible for involving me in this project in the

first place. He taught me how to ask questions, express my ideas which company I

will select & which technique used for analysis. He showed me different ways to

approach for the analysis.

I also thank the other two Mr. Shahnawaz Ali (Manager), Miss Kanika Arora

(Senior R.M.), who as my minor advisor guided me for study of share market and

market strategies of RELIGARE

Thanks also to Miss Mary Jecintha (Lecturer) CDAC Noida for teaching me

Financial Management and how to do a usability study, a skill that confirmed my

intuition that need a drawing environment to access knowledge-based systems .

A Special thanks goes to my friends Mr. Anuj Hooda and Miss Seema, who is

most responsible for helping me complete the writing of this Project

Table of Contents

1.INTRODUCTION.............................................................................................................

2. Religare Profile...................................................

3. Indian Equity Introduction................................................................................

4. Equity Analysis Introduction…...........................................................................

Fundamental Analysis Introduction

Technical Analysis Introduction

5. Company Equity Analysis.........................................................................

State Bank Of India Equity

Reliance Industry Ltd Equity

Larsen & Toubro Ltd. Equity

Infosys Equity

Tata steel Equity

Satyam computers Equity

6. Effect of Economic Growth on Share Market......................................................

Inflation rate

GDP

Labor market

7. Economic Growth Indicator.........................................................................

8 Table Economic Growth and Share Market (2000-2008) ............................................

9. Marketing Strategies of Religare.....................................................................

10 Comparisons between the Religare and other Trading

company………….. .

11 Suggestions………………………………………………………………..

12 Bibliography…………………………………………………………………..

Introduction to the Project

Introduction

A well functioning financial sector helps channel the resources to its most productive use and distributes the risk optimally across space and time thus induces economic growth. There are ample evidences from the literature that the degree of financial sector development especially a vibrant stock market facilitates long run growth (Levine, 1991; Bensivenga et al., 1995). Cross country growth regressions show that stock market liquidity is a contributing factor to economic growth even after controlling for initial income and political stability Both Rousseau and Wachtel (2000) and Arestis, Demetriades and Luintel (2000) show that stock market liquidity and banking development both predict the future growth of the economy. These empirical studies grossly confirm the theoretical predictions of Levine and Zervos (1996) and Demirguc-Kunt (1994) that stock markets can give a big boost to economic development. Contrarily some of the recent studies show that the impact of stock market on economic growth is country specific as relationship between intermediation and growth critically

depends upon the legal, regulatory and political environment of the countries This project explores the significance of the legal determinants of stock market development in a time series context for India. We model the determinants of stock market development along with conventional stock market development and economic growth as a single system to analyze the interlink ages among them. Recent developments in law and finance literature maintain that underdeveloped legal apparatus for financial contract enforcement would constrain the firm‟s ability to raise funds from outside sources either by equity or debt. If external funds are constrained, so is investment and technology intensive long-term investment induced

growth

Stock market development i.e. the market for external funds critically depends on

information gathering cost and monitoring costs. Legal institutions that define and protects the rights of the shareholders and creditors would crucially determine the level of expropriation and agency costs and increase the value for the principles i.e. the shareholders. These rights are typically defined in the contract, company, bankruptcy, and securities laws and the country‟s property rights regime. The law and finance theory holds that in countries where legal systems enforce private property rights, support private contractual arrangements, and protect the legal rights of investors are more willing to finance firms; there would be more savings as lesser premium required to part with the savings in a less risky environment thus financial markets flourish.

Religare Securities Limited (RSL), a 100% subsidiary of Religare Enterprises Limited is a leading equity and

securities firm in India. The company currently handles sizeable volumes traded on NSE and in the realm of online

trading and investments; it currently holds a reasonable share of the market. The major activities and offerings of the

company today are Equity Broking, Depository Participant Services, Portfolio Management Services, International

Advisory Fund Management Services, Institutional Broking and Research Services. To broaden the gamut of services

offered to its investors, the company offers an online investment portal armed with a host of revolutionary features.

RSL is a member of the National Stock Exchange of India, Bombay Stock Exchange of India,

Depository Participant with National Securities Depository Limited and Central Depository Services (I)

Limited, and is a SEBI approved Portfolio Manager.

Religare has been constantly innovating in terms of product and services and to offer such incisive

services to specific user segments it has also started the NRI, FII, HNI and Corporate Servicing groups.

These groups take all the portfolio investment decisions depending upon a client‟s risk / return parameter.

Religare has a very credible Research and Analysis division, which not only caters to the need of

our Institutional clientele, but also gives their valuable inputs to investment dealers.

Our Offerings

Equity & Derivatives

Trading in Equities with Religare truly empowers you for your

investment needs...

Trading in Equities with Religare truly empowers you for your investment needs. We ensure you have a superlative

trading experience through -

A highly process driven, diligent approach

Powerful Research & Analytics and

One of the “best-in-class” dealing rooms

Further, Religare also has one of the largest retail networks, with its presence in more than 1800* locations across

more than 490* cities and towns. This means, you can walk into any of these branches and connect to our highly

skilled and dedicated relationship managers to get the best services.

The Religare Edge

Pan India footprint

Powerful research and analytics supported by a pool of highly skilled research analysts

Ethical business practices

Offline/Online delivery models

Single window for all investment needs through your unique CRN

Portfolio Management Services

Religare offers Portfolio Management Service to address the varying

investment preferences...

Our Schemes

Monarque Monarque is ideally suitable for investors with "High Risk High Return" appetite.

Panther It is suitable for the “High Risk High Return” investor with a strategy to invest across

http://www.religaresecurities.com/equity_derivatives.asp

http://www.religaresecurities.com/equity_derivatives.asp

http://www.religaresecurities.com/pms.asp

sectors and take advantage of various market conditions

Tortoise This plan is suitable for the “Low Risk Low Return” investor with a strategy to invest in

blue chip companies, as these companies have steady performance and reduce liquidity risk in

the market

Caterpillar This scheme is suitable for investors with a high risk appetite.

Leo This scheme is a mix of moderate and aggressive investment strategies. Its aim is to have

a balanced portfolio comprising selected investments from both Tortoise and Panther.

Currency Futures

Now, experience the excitement of the world's most traded financial

instrument with Religare...

Benefits of Currency Futures

High Liquidity

Extended trading hours - 9 am to 5 pm

Opportunities to reap benefits owing to a highly dynamic market

Small lot size of only US $1000 with low exchange specified margins

Currency Futures is best suited for -

SMEs / Individuals involved in Imports/Exports

Corporate/ Institutions involved in Imports/Exports and anybody else who has foreign currency

exposure

http://www.religaresecurities.com/Currency_futures.asp

RATIONALE: BACKGROUND, CHALLENGES, AND OPPORTUNITIES

A. Background

1. The Indian economy has been growing at an average rate of 6% per year since the 1991

launch of economic reforms and liberalization of trade and investment. While agriculture has

traditionally been India‟s largest economic sub-sector, the past decade has seen the services

sector emerge as the largest component of gross domestic product (GDP). According to recent

research, the main factors underlying India‟s long-term growth are rationalization of the

domestic economy (i.e., improving total productivity) and, more recently, exports of information

technology and information technology–enabled services.

2. Over the last 10 years, the Indian Government has introduced wide-ranging changes to

accelerate economic growth and integrate the Indian economy with the rest of the world. These

reforms have primarily minimized or reduced the role of government in industry and trade, and

improved the competitiveness of Indian industry.

3. Some of the key governmental measures have been:

(i) Simplifying the process of setting up businesses. In particular, the business

licensing requirement has been abolished for most industries.

(ii) Rationalizing the tax regime, including lowering tariff barriers, reducing

marginal tax rates, and simplifying tax procedures.

(iii) Simplifying the trade regime and achieving full convertibility of the rupee.

(iv) Improving the overall investment climate by liberalizing many restrictions on

investment, including some major limitations on foreign investment, deregulating

interest rates, and opening up the insurance sector to private sector participation.

(v) Developing the infrastructure sector by encouraging private participation in

power, telecom, ports, and roads, and reforming the power sector to improve

efficiencies.

(vi) Reducing the role of government in industry and introducing a program to

make prices in the petroleum sector market-driven.

(vii) Implementing labor reforms, including amendments to the Industrial Disputes

Act allowing easier closure and layoffs of workers in economically unviable

companies, to encourage companies to hire employees more quickly, and

changes in the wage ceilings set in the Payment and Wages Act.

1. Indian Equity Industry

1. The private equity industry in India is more than 19 years old. The first venture capital fund,

TDICI Ltd. (now known as ICICI), was established in 1988.

2. In India today, many funds that have been set up in the last 9 years are focused on

information technology (IT). In contrast, the portfolio of more established funds shows a broad

exposure to a variety of commercial sectors and stages of investment including investments in

early-stage companies. The portfolio performance of many of the IT-focused funds has, with few

exceptions, mimicked the dismal performance of similar portfolios globally. Many institutional

investors that invested in such funds in the late 1990s therefore became wary of any potential

investment management entity that called itself a “venture capital” or “private equity” fund,

resulting in a drop in assets managed by these entities. However, the funds that built a more

diverse portfolio have tended to perform better and demonstrated a number of successful exits

through trade sales and initial public offerings (IPOs).

3. In 2008, funds broadened their interest to a range of sectors including manufacturing, health

care, banking and financial services, pharmaceuticals, engineering, textiles, and

telecommunications technology. The thriving market for business process outsourcing services

continued to be a favorite.

4. Successful exits in recent years and good returns by diversified funds have led to a slight

change in thinking among many Indian banks, financial institutions, and insurance companies.

With their relatively robust returns, these funds and investment teams look more attractive to

domestic institutional investors. As interest rates have fallen precipitously, asset managers have

had to start looking at private equity as an alternative asset class for investments.

5. While many investors have allocated more to private equity as an alternative asset class,

private equity is still underinvested because not enough fund managers have the experience

and financial backing needed to ensure sustainable operations. As a result, the private equity

Investment rate in India is still well below the levels in the Republic of Korea and Singapore

Stock Picking - Which stocks to buy?

Before picking the right stock you need to do some analysis.

There are two major types of analysis:

1.FundamentalAnalysis

2.TechnicalAnalysis

Fundamental analysis is the analysis of a stock on the basis of core financial and economic analysis to

predict the movement of stocks price.

On the other hand, technical analysis is the study of prices and volume, for forecasting of future stock

price or financial price movements.

Simply put, fundamental analysis looks at the actual company and tries to figure out what the company

price is going to be like in the future. On the other hand technical analysis look at the stocks chart,

peoples buying behavior etc. to try and figure out what the stock price is going to be like in the future.

Technical analysis is a little more complicated. It is much more of an "art" than a science. It depends

more on experience and involves some statistics and mathematics

F u n d a m e n t a l A n a l y s i s D e f i n i t i o n

Fundamental analysis is a stock valuation method that uses financial and economic analysis

to predict the movement of stock prices.

The fundamental information that is analyzed can include a company's financial reports, and

non-financial information such as estimates of the growth of demand for products sold by the

company, industry comparisons, and economy-wide changes, changes in government

policies etc..

Earnings per share (EPS) ratio & what it means!

Even comparing the earnings of one company to another really doesn’t make any sense, if you

think about it. Earnings will tell you nothing about how many shares the company has. Because

you do not know how many shares a company has, you do not know how many parts that

company’s earnings have to be divided into. If the company has more shares, the earnings will

be divided into more parts.

For example, companies A and B both earn Rs.100, but company A has 10 shares outstanding,

so each share holder has in effect earned Rs.10.

On the other hand, if company B has 50 shares outstanding and they too have earned Rs.100

then each shareholder has earned Rs.2. So you see it is important to know what is the total

number of outstanding shares are as well as the earnings.

Thus it makes more sense to look at earnings per share (EPS), as a comparison tool. You

calculate earnings per share by taking the net earnings and divide by the outstanding shares.

EPS=NetEarnings/OutstandingShares

So looking at the EPS ratio, you should go buy Company A with an EPS of 10, right? EPS is not

the only basis of comparing two companies, but it is one of the methods used.

Note that there are three types of EPS numbers:

Trailing EPS – last year’s numbers and the only actual EPS

Current EPS – this year’s numbers, which are still projections

Forward EPS – future numbers, which are obviously projections

EPS doesn’t tell you whether it’s a good stock to buy or what the market thinks of it. For

that information, we need to look at some other ratios next....

Price earnings ratio (P/E ratio) is the ratio between market price per equity share and earning

per share. The ratio is calculated to make an estimate of appreciation in the value of a share of a

company and is widely used by investors to decide whether or not to buy shares in a particular company

Price Earnings Ratio = Market price per equity share / Earnings per share

Example:

The market price of a share is $30 and earning per share is $5.

Calculate price earnings ratio.

Calculation:

Price earnings ratio = 30 / 5 = 6

The market value of every one dollar of earning is six times or $6. The ratio is useful in financial forecasting. It also helps in knowing whether the share of a company are under or over valued. For

example, if the earning per share of AB limited is $20, its market price $140 and earning ratio of similar companies is 8, it means that the market value of a share of AB Limited should be $160 (i.e., 8 × 20). The share of AB Limited is, therefore, undervalued in the market by $20. In case the price earnings ratio of similar companies is only 6, the value of the share of AB Limited should have been $120 (i.e., 6 × 20), thus the share is overvalued by $20.

Significance of Price Earning Ratio:

Price earnings ratio helps the investor in deciding whether to buy or not to buy the shares of a particular company at a particular market price.

Generally, higher the price earning ratio the better it is. If the P/E ratio falls, the management should look into the causes that have resulted into the fall of this ratio.

Return on Shareholders Investment or Net Worth Ratio:

It is the ratio of net profit to share holder's investment. It is the relationship between net profit (after

interest and tax) and share holder's/proprietor's fund. This ratio establishes the profitability from the share

holders' point of view. The ratio is generally calculated in percentage

Components:

The two basic components of this ratio are net profits and shareholder's funds. Shareholder's funds

include equity share capital, (preference share capital) and all reserves and surplus belonging to

shareholders. Net profit means net income after payment of interest and income tax because those will

be the only profits available for share holders.

[Return on share holder's investment = {Net profit (after interest and tax) / Share holder's fund} × 100]

Example:

Suppose net income in an organization is $60,000 where as shareholder's investments or funds are

$400,000.

Calculate return on shareholders investment or net worth

Return on share holders investment = (60,000 / 400,000) × 100 = 15%

This means that the return on shareholders funds is 15 cents per dollar

Significance:

This ratio is one of the most important ratios used for measuring the overall efficiency of a firm. As the

primary objective of business is to maximize its earnings, this ratio indicates the extent to which this

primary objective of businesses being achieved. This ratio is of great importance to the present and

prospective shareholders as well as the management of the company. As the ratio reveals how well the

resources of the firm are being used, higher the ratio, better are the results. The inter firm comparison of

this ratio determines whether the investments in the firm are attractive or not as the investors would like to

invest only where the return is higher

TECHNICAL ANALYSIS

Technical Analysis is the study of prices and volume, for forecasting of future stock price or financial

price movements. Technical analysis can help investors anticipate what is "likely" to happen to prices

over time.

Technical analysis is not an exact science. It's an art and takes considerable experience. But don't

worry everyone with each knowledge can learn it.

Technical Analysis Basic Principles

Technical Analysis is based on these three basic principles:

1 - Price Discounts Everything

Technical analysts believe that the current price fully reflects all information. Because all information is

already reflected in the price, it represents the fair value, and should form the basis for analysis. After

all, the market price reflects the sum knowledge of all participants, including traders, and …

Stock Market Technical analysis utilizes the information captured by the price to interpret what the

market is saying with the purpose of forming a view on the future.

2 - Prices Move in Trends

Technical analysts or chartists believe that profits can be made by following the trends. In other words if

the price has risen, they expect it to continue rising; if the price has fallen, they expect it to continue

falling. However, most technicians also acknowledge that there are periods when prices do not trend.

3- History Repeats Itself

Technical analysts believe that investors en masse repeat their behavior and they assume that there is

useful information hidden within price histories; that it is a way of analyzing the past actions of people in

a particular market as reflected by their actual transactions.

Technical Analysis Tools

Every technical analyst needs charts and indicators to study market. Three common types of charts are

used by investors: Line Chart, Bar Chart and Candlestick Chart.

http://www.stockinvestingideas.com/technical-analysis/technical-indicators.htm

Line Chart is formed by plotting one price point, usually the close, of a security over a period of time.

Connecting the dots, or price points, over a period of time, creates the line.

Bar Chart is drawn by high, low and closing price. Sometimes, bar charts are drawn by opening price. In

this case, bearish bars are drawn with another color.

Candlestick Chart A form of Japanese charting that has become popular in the West. A narrow line

(shadow) shows the day's price range. A wider body marks the area between the open and the close.

Technical Indicators

Technical indicators are the basis of technical analysis. There are dozens of technical indicators, how

to choose good stock indicators? Technical indicators are used to know when to enter or exit a trade. If

you know how to enter and exit a trade, you can easily make profits. That is why choosing good stock

indicators are important.

Some of stock indicators are more common and useful than others. Also you need a few of them to

know when to enter or exit a trade not all off them.

Momentum and Rate of Change (ROC)

Momentum is an oscillator designed to measure the rate of price change, not the actual price level. This

oscillator consists of the net difference between the current closing price and the oldest closing price

from predetermined period.

The formula is:

Momentum (M) = CCP – OCP

Where: CCP is Current Closing Price and OCP is Old Closing Price

Momentum is simply the difference, and the ROC is a ratio expressed in percentage. Momentum and

Rate of Change (ROC) are simple indicators showing the difference between today's price and the close

N days ago. Momentum in general term means strongly movement of prices in a given direction.

Moving Average Convergence/Divergence (MACD)

The MACD is a trend following momentum indicator that shows the relationship between two moving averages of

prices. The MACD is the difference between a 26-day and a 12-day exponential moving average (MACD is shown

in red). A 9-day exponential moving average called the SIGNAL (or trigger) is plotted on the same axis in order to

indicate Buy / Sell opportunities (This line is shown in black).

Why use the MACD chart

- Foresee Buy and Sell signals - Use as an Oversold or Overbought Indicator - Indication of trends - Foresee price breakouts

Analysis Tools for MACD

The results are plot If the MACD is greater than zero, then the market is bullish (The 12-day average is

greater than the 26 day-average).

If the MACD is less than zero, then the market is bearish. (The 26-day average is greater than the 12

day-average).

When the MACD (red) crosses above it's Trigger line (black), a buy signal is indicated.

When the MACD (red) crosses below it's Trigger line (black), a sell signal is indicatedtted around a Zero

line (see chart below),

Detailed Analysis Methods and preferences

The MACD is a trend following indicator, this implicates that you will be indicated of a buy or

sell opportunity once a given trend has started. This means that you may miss the exact buy or

sell opportunity, but the MACD will certainly keep you on the good side of trading. Please note

that the MACD is not so reliable on shorter trends.

The MACD proves most effective in wide-swinging trading markets. There are three popular

ways to use the MACD ;

1.Crossovers :

The MACD trading rule is to sell when it falls below its trigger line and a buy signal when the

MACD crosses over to the top of the Trigger line. Not forgetting the fact that when the MACD is

situated above the Zero line it is a buy signal and a sell signal when it is below the Zero line.

2.Overbought / Oversold Conditions:

The MACD is also useful as an overbought / Oversold indicator. When the shorter moving

average pulls away dramatically from the longer moving average (i.e. the MACD rises), it is

likely that the security price is overextending and will soon return to more realistic levels

3.Divergences : End to current trends.

An indication that an end to the current trend may be near occurs when the MACD diverges

from the security. A bearish divergence occurs when the MACD is making new lows while price

fails to reach new lows. A bullish divergence occurs when the MACD is making new highs

while prices fail to reach new highs. Both of these divergences are more significant when they

occur at relatively overbought / oversold levels.

The above chart demonstrates a 3 and 6 period moving average with a 9 for the Trigger. These

settings demonstrate short term buy and sell signals offering opportunities to get in or out.

Notice that where the MACD goes above or below the Zero line, it indicates the trend of the

security.

For longer term trading you must set the preferences to 13 and 26 for the MACD and 9 for the

Trigger.

Comments made by Analysts

Some technicians recommend buying using the 8-day / 17-day MACD with the 9-day

Trigger line and selling using the 12-day / 26-day MACD with the 9-day Trigger line.

- MACD is especially valuable when used in conjunction with a momentum indicator such

as the Stochastic Oscillator or the RSI. Since the MACD is a sensitive indicator of public

sentiment, it can be applied to Mutual Funds as well as Stock.

- When using the MACD as an Overbought / Oversold indicator, a trader should look

particularly at when the MACD pulls away from the Trigger in a dramatic manner, it is

likely that the security price is overextending and will soon correct.

- Buy when the MACD crosses from below to above the slower moving trigger. Sell when

the MACD crosses from above to below the Trigger.

Exponential Moving Average (EMA)

Exponential Moving Average shows the average value of the underlying data, most often

the price of a security, for a given time period, attributing more weight to the latest

changes and less to the changes that lie further away.

Exponential Moving average is together with its simple counterpart (MA) considered to be

one of the most common Indicators in nearly any technical analysis software available in

the market today. It‟s a trend following indicator and is calculated like so:

EMA = Price(t) * k + EMA(y) * (1 - k)

t = today, y = yesterday, N = number of days in EMA, k = 2/(N+1)

Simple Moving Average – SMA

A simple, or arithmetic, moving average that is calculated by adding the closing price of the security for a number of time periods and then dividing this total by the number of time periods. Short-term averages respond quickly to changes in the price of the underlying, while long-term averages are slow to react.

Explains Simple Moving Average - SMA

In other words, this is the average stock price over a certain period of time. Keep in mind

that equal weighting is given to each daily price. As shown in the chart above, many

traders watch for short-term averages to cross above longer-term averages to signal the

beginning of an uptrend. As shown by the blue arrows, short-term averages (e.g. 15-

period SMA) act as levels of support when the price experiences a pullback. Support

levels become stronger and more significant as the number of time periods used in the

calculations increases

Relative Strength Index (RSI)

The values for this indicator vary between 0 and 100 which represent the internal force of a security. The name is misleading because it studies the force of a security price in relation with itself and not at all in relation with another indicator.

The formula for calculating RSI is:

RSI = 100 – [100/ (1+RS)]

Why use the RSI charts

- Study the tendency of the security

- Detect an inversion of tendency

- Detect overbought and oversold situations

Analysis tools for the Relative Strength Index

1. The two dotted lines that are drawn above the RSI indicate that the security is in a :

a. Overbought phase if it goes above the 70 line.

b. Oversold phase if it goes below the 30 line.

( 70 and 30 are the default values the most currently used for financial studies made with the

RSI)

2. In general we interpret this indicator in the following ways :

a. If the RSI is above 50 the tendency is up-moving.

b. If the RSI is below 50 the tendency is down-moving.

3. This indicator also enables us to visualize financial motifs like the " head and shoulders" or

"double peak" effects which indicate the double Top, double Bottom movements. It is possible

that these effects are not visible with the closing prices of the share itself.

Detailed analysis and preferences

This indicator is very useful to detect tendency inversions, especially when there is a

divergence between the peaks of the security price itself and the RSI peaks. Let us take for

example Holder bank in June 1999

A first peak is reached the week of December 13th at 2162CHF, then a second peak is

reached on the 18th of January at 2273CHF. These two peaks imply that there is an upward

movement on the Holder bank chart. But, the RSI chart does not reflect this upward direction,

on the contrary, it actually reflects a downward movement simply by the fact that the second

peak is under the first for the same dates (above and then below the 70 dotted line).

This indicator is significant in the sense that its indicates us a month in advance that the

tendency will be downward open the longer term, as we clearly see in February.

The values that the analysts advise you to use are 9 days, 14 days or 25 days. The smaller the

number of days used for the study the higher the volatility of the indicator.

Stochastic Oscillator

The Stochastic Oscillator is a momentum indicator, it indicates whether the market is moving to new

highs or new lows or is just meandering in the middle. This indicator is based on George Lane 's

observations.

The Stochastic Oscillator is plotted in two lines Fast %k and Fast %D.

The formula is:

Fast %k = 100 * [( C – L (n) ) / ( H (n) – L (n) )]

Where:

C is the most recent closing price.

L (n) is the low of n previous trading day (or bar).

H (n) is the high price of the same n previous day (or bar).

Usually n is chosen 14.

A 3-period (day or bar) moving average is taken from Fast %k and called Fast %D. Fast %D is used as a

signal line in the same way that the moving average of the MACD is used as a signal line for the MACD.

Stochastic Oscillator is plotted in two lines but, usually these lines cross each other many times. Now to

smooth the chart, a 3-period moving average is taken from Fast %D and called Slow %D (Also, Fast %D is

called Slow %K), so the smoothed chart is plotted with Slow %K and Slow %D.

Using of Stochastic Oscillator

1- Oscillators are used as an overbought/oversold indicator. A buy is signaled when the oscillator moves

below 20, and then crosses back above 20. A sell is signaled when the oscillator moves above 80, and

then crosses below 80.

2- Also, when %K crosses above or below %D, Buy and sell signals can be given. But, may be crossover

occurs frequently in short periods and causes bad results. This using isn't very common.

Fibonacci Price Projections

Begin by adding one to itself... which is two. Then add two to one to get three -- the next number in the

series. You keep adding the current number to the previous number so it looks like this...

1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144...

Now, you have a number series which goes on forever.

Next, there is an important ratio which is calculated by dividing one number in the series

by its previous number. For example...

144 ÷ 89 = 1.618

This ratio is known as the Golden Mean and is the basis for most retracement percentages. Equally

important is the reciprocal of 1.618...

1 ÷ 1.618 = .618

Here are some other percentages you'll want to use...

.382 = .618 squared

.500 = 1 ÷ 2, the second and third numbers in the series

.786 = square root of .618

1.000 = 1.618 x .618

1.272 = square root of 1.618

2.618 = 1.618 squared

How are Fibonacci percentages applied?"

Begin by locating isolated highs and lows in a trend. The various swing points will be used to measure

the retracements. In the following illustration, trend AB has been established...

Counter-trend BC is a 50-percent retracement of trend AB. Trend CD continues in the same

direction as trend AB. Counter-trend DE is a 38-percent retracement of trend CD.

Shallow retracements are typical in a strong trend.

Combining retracements from multiple swing points is a dynamic forecasting method. In the

next example, retracement percentages are calculated from trends AD and CD...

The 38-percent retracement is calculated from trend AD. The 50-percent retracement is

from trend CD. When retracements from different swing points cluster together it is known

as confluence.

Areas of confluence are likely turning points.

So far, you have seen how to calculate probable retracements using the high and low swing

point of an established trend. You can use Fibonacci percentages, in combination, to

forecast the end of a trend... with excellent results.

This next example shows a typical five-wave trend progression where the 1.618 and .618 percentage

extensions are used...

First, trend AB is multiplied by 1.618 and then added to itself... forecasting a target price at

point F. Next, counter-trend BC retraces part of trend AB before continuing on. Finally,

trend AD is multiplied by .618 and added to itself. This projection also forecasts the trend

termination at point F. Incredibly powerful!

In a five-wave pattern, this ratio combination will bear-out turning points, again and again.

Why Technical Analysis is Superior to Fundamental Analysis

Why Technical Analysis

Fundamentalists must find the reasons of price movement. Sometimes this act is very complicated;

there are so many factors that make change on price such as political, psychotically events and so on. To

trade the fundamentalist must study and research tremendous amount of data that takes so much time

and effort.

Technical analysis is Flexible and Adaptable

You can apply technical rules to every market either stocks or futures or any other market. The

technician easily can follow many markets in the same time. This is a great strength because you can

catch big movements in each market.

Trading in different Time Dimensions

You can use technical rules for day trading, swing trading, long term trading and etc. rules are the same

you only change time of charts. Some people say technical analysis is only suitable for short term

trading, but it is not true. Using weekly and monthly charts that refer to several years has proven the

strength of technical analysis for long term trading.

Why Fundamental Analysis is needed?

One of defects in Technical Analysis is that it's a little slow.

It means that the increasing trend of a stock started before, but after some tardiness (maybe after some

days) signals of purchase appear in Technical Analysis method. Or for example on the ground of news

that company publishes, you could distinguish decreasing trend of stock is starting (with Fundamental

Analysis) but decreasing trend's signals appear with some tardiness in Technical Analysis.

In Technical Analysis, with notice to the past of stock you could forecast its future.

Suppose that a new company who enter in the stock market, There is no past to help us to forecast its

future, so you should get helps from Fundamental Analysis.

Sometimes, you find a stock in the stock market that it's good to buy with Technical Factors but when

you analyze it with Fundamental Factors you find that the price of this stock is too far from its real value

and its price is increased like a bubble and maybe there are some manipulations in the stock.

Conclusion

Combination of these two methods could give you too much advantage and you could increase the

return in the stock market. In fact, it's better to know both methods and then choose one of theme as a

principal method and use other method as a help.

But you should notice that analyze of a stock with Fundamental method takes too much time.

Remember that you use this method to complete Technical Analysis, so continue your researches in

Fundamental Analysis until your researches in Technical Analysis complete. In other words: Find a stock

technically and then be sure that there is no problem fundamentally.

EQUITY ANALYSIS

Fundamental Analysis

EPS (26-march-2007)

86.29

Price to earning (P/E) ratio

MARKET RATE: 1095.50

EPS : 86.29

P/E = Stock Price / EPS

State Bank of India

Industry : Finance - Banks - Public Secto BSE Code : 500112 NSE Code : SBINEQ

You can view the latest 3 yearly unaudited results.

(Rs in Cr.)

Mar ' 09 Mar ' 08 Mar ' 07

Sales 63,788.43 48,950.31 39,491.02

Other income 12,690.79 8,694.93 5,769.25

Employee Expenses 9,747.31 7,785.87 7,932.58

Other Expenses 5,901.39 4,822.74 3,890.93

Total interest 42,915.29 31,929.08 23,436.82

Gross profit 17,915.23 13,107.55 9,999.94

Provisions Made 3,734.57 2,668.65 2,409.64

Net depreciation 0.00 0.00 0.00

Total taxation 5,059.42 3,709.78 3,048.99

Extra ordinary item 0.00 0.00 0.00

Net profit / loss 9,121.24 6,729.12 4,541.31

Prior year adjustment 0.00 0.00 0.00

Reserve written back 0.00 0.00 0.00

Equity capital 634.88 631.47 526.30

Equity Dividend Rate 290.00 215.00 140.00

Agg. Non-Promotor Shares (in Lacs) 2,576.73 2,119.60 3,143.39

Agg. Non-Promotor Holding(%) 40.59 40.27 59.73

GovernmentShare 59.41 59.73 0.00

CapitalAdequacyRatio 12.97 13.47 12.34

EPS (in Rs.) 143.67 106.56 86.29

= 1013.65/ 86.29

= 11.74

EPS (26-Mar-2008)

106.56



EPS : 106.56


= 1713.70/ 106.56

= 16.08

EPS (26-Mar-2009)

143.67


MARKET RATE: 1,095.50

EPS : 143.67


= 1,095.50/ 143.67

= 7063

Reported Return On Net Worth

2009: 15.74

2008: 13.72

2007: 14.50

Growth Rate of EQ Shares in the market price

Growth Rate 08-09 : 57%

Growth Rate (till June) : 32.6%

Dividend Paid in%

March 09: 290%

March08: 215%

March07: 140%

SBIN technicals

State Bank of India (SBIN:EQ) Market Cap: Rs. 42164.34 Crores

A component of BANK NIFTY / CNX 100 / CNX 500 / NIFTY

Paidup Value

10

Face Value: 10

Market Lot: 1

ISIN Code

INE062A01012

Listing Date

01-MAR-1995

High Low Close

Last 1697.00 1619.15 1636.35

Prev. 1839.90 1633.15 1653.50

Weekly 1822.00 1721.10 1809.65

52 week 1941.00 891.50

Monthly 1941.00 1598.95 1745.30

Intraday support & resistance:

S 2 S 1 Pivot R 1 R 2

1572.95 1604.60 1650.80 1682.45 1728.65

Moving averages (simple):

5 D 8 D 13 D 20 D 39 D 50 D 200 D

1728 1737 1727 1713 1721 1629 1320

Other indicators:

- Volume (last/ 5 day average): 3562000 / 2564000

Trading range (historical)

5 day 10 day 20 day

Highest close 1809.65 1809.65 1809.65

Lowest close 1636.35 1636.35 1634.60

http://www.buzzingstocks.com/in/bankniftywatch.pl

http://www.buzzingstocks.com/in/cnx100watch.pl


http://www.buzzingstocks.com/in/niftywatch.pl

Support and Resistance:

Prev resistance

Prev support

Weekly high

Weekly low

Monthly high

Monthly low

1840

1599

1822

1721

1941

1599

Technical Analysis SBIN (6month) Chart

INVESTMENT BENEFITS

High Growth rate in the share price i.e. better return on investment

Dividends paid is also high which create confidence among the investor

RISKS

Very volatile in nature

Conclusion:

SBI is very good stock

Fundamental is very good

Volume in Trading is very good it show it is very active shares

Very Stable company

Good for both long term and short term investor

I would say, it has very good future.

Technically, it show uptrend

Investors must think about this stock

Reliance Industries Limited

Reliance Industries Limited. The Group's principal activity is to produce and distribute plastic and

intermediates, polyester filament yarn, fiber intermediates, polymer intermediates, crackers, chemicals,

textiles, oil and gas

Reliance Industries

Mar ' 09 Mar ' 08 Mar ' 07

Sales 150,771.00 139,269.00 110,886.00

Other Income 2,033.00 895.00 193.00

Stock Adjustment 1,821.00 1,867.00 -970.00

Raw Material 97,150.00 90,304.00 77,889.00

Power And Fuel 0.00 0.00 0.00


Excise 4,480.00 5,826.00 5,523.00

Admin And Selling Expenses 0.00 0.00 0.00

Research And Development Expenses 0.00 0.00 0.00

Expenses Capitalized 0.00 0.00 0.00

Other Expenses 21,567.00 15,847.00 9,037.00

Provisions Made 0.00 0.00 0.00

Operating Profit 23,395.00 23,306.00 18,210.00

Interest 1,692.00 1,077.00 1,114.00

Gross Profit 23,736.00 23,124.00 17,289.00

Depreciation 5,059.00 4,847.00 4,009.00

Taxation 3,028.00 3,552.00 2,372.00

Net Profit / Loss 15,279.00 19,458.00 10,908.00

Extra Ordinary Item -370.00 4,733.00 0.00

Prior Year Adjustments 0.00 0.00 0.00

Industry : Diversified BSE Code : 500325 NSE Code : RELIANCEEQ

The latest 3 yearly unaudited results

.

Equity Capital 1,574.00 1,454.00 1,394.00


Agg.Of Non-Prom. Shares (in Lacs) 7,482.00 7,069.00 6,831.00

Agg.Of Non PromotoHolding(%) 47.54 48.63 49.02

OPM(%) 15.51 16.73 16.42

GPM(%) 15.53 16.49 15.56

NPM(%) 9.99 13.88 9.82

EPS (in Rs.) 97.07 133.82 78.25


EPS (26-march-2007)

78.25



EPS : 78.25


= 1,941.95/ 78.25

= 24.82

EPS (26-Mar-2008)

133.82



EPS : 133.82


= 2,299.45/ 133.82

= 17.18

EPS (26-Mar-2009)

97.07



EPS : 97.07


= 1,565.50/ 97.07

= 16.12

Reported Return On Net Worth

2009: 24.66

2008: 19.49

2007: 20.08


Growth Rate 08-09 -13.18%

Growth Rate (till June) 63.16%

Dividend Paid in%

March 08: 130%

March07: 110%

Reliance Industries Ltd (RELIANCE:EQ) Market Cap: Rs. 130212.91 Crores

A component of CNX 100 / CNX 500 / NIFTY

Paidup Value

10

Face Value: 10

Market Lot: 1

ISIN Code

INE002A01018

Listing Date

29-NOV-1995

High Low Close

Last 1913.00 1825.20 1855.45

Prev. 2052.00 1861.05 1893.15

Weekly 2112.90 1980.00 2027.65

52 week 2535.00 930.00

Monthly 2379.00 1900.00 2023.40






1776.75 1816.10 1864.55 1903.90 1952.35


5 D 8 D 13 D 20 D 39 D 50 D 200 D

1969 1998 1997 2067 2129 2071 1579

Other indicators:



5 day 10 day 20 day

Highest close 2058.80 2087.00 2362.10

Lowest close 1855.45 1855.45 1855.45


Prev resistance

Prev support

Weekly high

Weekly low

Monthly high

Monthly low

2113

1900

2113

1980

2379

1900

INVESTMENT BENEFITS



KG band show the bright future of the company

RISKS


Conclusion:

RELIANCE is very good stock



Very Stable company





Larsen & Toubro Ltd.

Larsen & Toubro Limited (L&T) is a technology, engineering, construction and

manufacturing company. It is one of the largest and most respected companies in

India's private sector Diversified engineering & construction conglomerate, Larsen &

Toubro Limited has reported Gross Sales revenues for the year at Rs.34045 crore

registering a y-on-y growth of 35%. International Sales at Rs. 6460 crore

Larsen & Toubro Ltd.

Industry : Diversified BSE Code : 500510 NSE Code : LTEQ


(Rs in Cr.)

Mar ' 09 Mar ' 08 Mar ' 07

Sales 34,324.84 25,187.48 17,900.59

Other Income 739.78 587.87 462.29

Stock Adjustment -105.11 -746.17 -56.45

Raw Material 7,452.02 6,516.82 4,460.27



Excise 398.47 332.78 321.75

Admin And Selling Expenses 1,839.50 1,374.17 1,495.85

Research And Development Expenses 0.00 0.00 0.00

Expenses Capitalized 0.00 0.00 0.00

Other Expenses 18,885.10 13,359.81 8,674.42



Interest 350.22 122.66 33.93

Gross Profit 4,246.40 3,279.84 2,174.90

Depreciation 305.99 211.60 170.01

Taxation 1,231.21 982.05 601.87

Net Profit / Loss 3,481.66 2,173.42 1,403.02

Extra Ordinary Item 772.46 87.23 0.00


Equity Capital 117.14 58.47 56.65


Agg.Of Non-Prom. Shares (in Lacs) 5,684.96 2,802.45 2.76

Agg.Of Non Promoter Holding (%) 97.06 95.87 97.57

OPM(%) 11.23 11.17 9.75

GPM(%) 12.11 12.72 11.84

NPM(%) 9.92 8.43 7.64

EPS (in Rs.) 59.44 74.34 49.53


EPS (26-march-2007)

49.53



EPS : 49.53


= 2160.20/ 49.53

= 43.66

EPS (26-Mar-2008)

74.34



EPS : 74.34


= 2357.65/ 74.34

= 31.72

EPS (26-Mar-2009)

59.44



EPS : 59.44


=1610.40/ 59.44 = 27.09

Reported Return On Net Worth(%)

2009: 22.81

2008: 24.48

2007: 22.05




Dividend Paid in%

March 09: 850%

March 08: 650%

March07: 1100%

Larsen & Toubro Limited (LT:EQ) Market Cap: Rs. 87946.22 Crores


Paidup Value

2

Face Value: 2

Market Lot: 1

ISIN Code

INE018A01030

Listing Date

23-JUN-2004

High Low Close

Last 1523.80 1471.00 1500.15

Prev. 1661.90 1445.00 1464.15

Weekly 1660.00 1537.20 1607.55

52 week 1698.70 556.00

Monthly 1698.70 1370.00 1567.80



1445.50 1472.80 1498.30 1525.60 1551.10


5 D 8 D 13 D 20 D 39 D 50 D 200 D

1543 1564 1542 1540 1438 1331 945

Other indicators:






5 day 10 day 20 day

Highest close 1607.55 1621.80 1629.00

Lowest close 1464.15 1464.15 1415.75


Prev resistance

Prev support

Weekly high

Weekly low

Monthly high

Monthly low

1662

1440

1660

1537

1699

1370

INVESTMENT BENEFITS



Good Future Project

1 L&T bags RS. 6510 millions orders for projects in Hydrocarbon Sector

2 L&T bags RS. 6510 millions Electrical Project Orders

RISKS


Conclusion:

L&T is very good stock

Growth of 23% over the previous year



Very Stable Company





Infosys Technologies Ltd.

Infosys' offerings span business and technology consulting, application services, systems

integration, product engineering, custom software development, maintenance, re-

engineering, independent testing and validation services, IT infrastructure services and

business process outsourcing

Infosys Technologies Ltd.

Industry : Computers - Software BSE Code : 500209 NSE Code : INFOSYSTCHEQ


(Rs in Cr.)

Mar ' 09 Mar ' 08 Mar ' 07

Sales 20,264.00 15,648.00 13,149.00

Other Income 502.00 683.00 375.00

Stock Adjustment 0.00 0.00 0.00

Raw Material 0.00 0.00 0.00



Excise 0.00 0.00 0.00

Admin And Selling Expenses 2,213.00 1,809.00 1,646.00

Research And Devlopment Expenses 0.00 0.00 0.00

Expenses Capitalised 0.00 0.00 0.00

Other Expeses 1,176.00 1,068.00 964.00



Interest 0.00 0.00 0.00

Gross Profit 7,408.00 5,646.00 4,598.00

Depreciation 694.00 546.00 469.00

Taxation 895.00 630.00 352.00

Net Profit / Loss 5,819.00 4,470.00 3,783.00

Extra Ordinary Item 0.00 0.00 6.00


Equity Capital 286.00 286.00 286.00



Agg.Of Non Promoter Holding(%) 64.37 64.31 64.35

OPM(%) 34.08 31.71 32.11

GPM(%) 35.67 34.57 33.99

NPM(%) 28.02 27.37 27.97

EPS (in Rs.) 101.73 78.15 66.14


http://www.infosys.com/offerings/default.asp

http://www.infosys.com/consulting-services/default.asp

http://www.infosys.com/IT-services/application-services/default.asp

http://www.infosys.com/IT-services/systems-integration/default.asp



http://www.infosys.com/engineering-services/product-engineering/default.asp

http://www.infosys.com/engineering-services/default.asp

http://www.infosys.com/engineering-services/default.asp

http://www.infosys.com/IT-services/independent-validation-services/default.asp

http://www.infosys.com/IT-services/infrastructure-services/default.asp

http://www.infosys.com/BPO-services/default.asp

EPS (26-march-2007)

66.14



EPS : 66.14


= 1922.15/ 66.14

= 29.06

EPS (26-Mar-2008)

78.15



EPS : 78.15


= 1785.10/ 78.15

= 22.84

EPS (26-Mar-2009)

101.73



EPS : 101.73


=1806.00/ 101.73

= 17.75


2009: 32.67

2008: 33.13

2007: 33.89


Growth Rate 08-09 2.28%


Dividend Paid in (%)

March 10 Purposed: 270%

March 09: 470%

March 08: 665%

March07: 230%

Infosys Technologies Ltd. (INFOSYSTCH:EQ) Market Cap: Rs. 83131.61 Crores

A component of CNX 100 / CNX 500 / CNX IT / NIFTY

Paidup Value

5

Face Value: 5

Market Lot: 1

ISIN Code

INE009A01021

Listing Date

08-FEB-1995

High Low Close

Last 1797.00 1725.00 1737.90

Prev. 1819.40 1750.35 1761.20

Weekly 1860.00 1747.65 1805.15

52 week 1910.90 1040.00

Monthly 1860.00 1601.00 1776.50



1681.30 1709.60 1753.30 1781.60 1825.30



http://www.buzzingstocks.com/in/cnxitwatch.pl



5 D 8 D 13 D 20 D 39 D 50 D 200 D

1779 1785 1776 1762 1693 1659 1388

Other indicators:



5 day 10 day 20 day

Highest close 1805.15 1827.10 1827.10

Lowest close 1737.90 1737.90 1711.45


Prev resistance

Prev support

Weekly high

Weekly low

Monthly high

Monthly low

1860

1701

1860

1748

1860

1601

INVESTMENT BENEFITS



Good Future Project

1 Telstra Selects Infosys as a Key Partner

2 27 clients were added during the quarter by Infosys and its subsidiaries

RISKS


Conclusion:

Infosys is very good stock

Revenues grew by 12.7%



Very Stable Company

http://www.infosys.com/newsroom/press-releases/2009/telecom-strategic-partner.asp





Tata Steel has a balanced global presence in over 50 developed European and fast growing Asian

markets, with manufacturing units in 26 countries

Tata Steel Thailand is the largest producer of long steel products in Thailand, with a manufacturing

capacity of 1.7 MTPA. Tata Steel has proposed a 0.5 MTPA mini blast furnace project in Thailand.

NatSteel Holdings produces about 2 MTPA of steel products across its regional operations in seven

countries

Tata Steel Ltd.

Industry : Steel BSE Code : 500470 NSE Code : TATASTEELEQ


(Rs in Cr.)

Mar ' 09 Mar ' 08 Mar ' 07

Sales 24,315.77 19,693.28 19,762.57

Other Income 308.27 335.00 433.67

Stock Adjustment -289.27 -38.73 -82.47

Raw Material 5,709.91 3,429.52 3,121.46

Power And Fuel 1,091.37 0.00 0.00


Excise 0.00 0.00 2,210.55

Admin And Selling Expenses 0.00 0.00 0.00

Research And Devlopment Expenses 0.00 0.00 0.00

Expenses Capitalised 0.00 0.00 0.00

Other Expeses 6,364.52 6,484.18 6,082.93



Interest 1,152.69 878.70 173.90

Gross Profit 8,289.01 7,679.84 7,233.04

Depreciation 973.40 834.61 819.29

Taxation 2,113.87 2,379.33 2,039.50

Net Profit / Loss 5,201.74 4,687.03 4,222.15

Extra Ordinary Item 0.00 221.13 -152.10


Equity Capital 730.79 730.78 580.67



Agg.Of Non PromotoHolding(%) 66.05 66.06 69.48

OPM(%) 37.56 41.75 35.28

GPM(%) 33.66 38.34 35.81

NPM(%) 21.12 23.40 20.90

EPS (in Rs.) 71.18 64.14 72.71


EPS (26-march-2007)

72.71


MARKET RATE: 604.15

EPS : 72.71


= 604.15/ 72.71

= 8.30

EPS (26-Mar-2008)

64.14


MARKET RATE: 756.55

EPS : 64.14


= 756.55/ 64.14

= 11.79

EPS (26-Mar-2009) 71.18


MARKET RATE: 388.55

EPS : 71.18


=388.55/ 71.18

= 5.46


2009: 21.52

2008: 30.71

2007: 36.90




Dividend Paid in (%)

March 08: 160%

March07: 155%

Tata Steel Limited (TATASTEEL:EQ) Market Cap: Rs. 17570.58 Crores


Paidup Value

10

Face Value: 10

Market Lot: 1

ISIN Code

INE081A01012

Listing Date

18-NOV-1998

High Low Close

Last 370.00 352.50 364.05

Prev. 392.95 360.00 362.50

Weekly 443.00 381.05 437.95

52 week 700.00 137.50

Monthly 498.80 379.30 390.65






344.65 354.25 362.15 371.75 379.65


5 D 8 D 13 D 20 D 39 D 50 D 200 D

392 396 397 406 406 377 274

Other indicators:



5 day 10 day 20 day

Highest close 437.95 437.95 457.75

Lowest close 362.50 362.50 362.50


Prev resistance

Prev support

Weekly high

Weekly low

Monthly high

Monthly low

443

380

443

381

499

379

INSTMENT BENEFITS


Good Future Project

India: The Company has embarked upon setting up three green field steel plants in eastern India:

12 MTPA* plant in Jharkhand 6 MTPA plant in Orissa 5 MTPA plant in Chhattisgarh Jamshedpur Steel Works will become a 10 MTPA unit by 2010.

*MTPA = million tonnes per annum

Overseas:

Vietnam

RISKS


Conclusion:

TATA STEEL is very good stock

Revenues grew by 12.0%



Very Stable Company




Mahindra Satyam Integrated Engineering Solutions (IES) provides premium engineering and product development

solutions to support a given engineered product through its lifecycle. The ideas are conceived, conceptualized and

validated for technological feasibility and commercialization. With a keen eye on aesthetics, ergonomics, safety and

reliability, Mahindra Satyam‟s engineers and designers shape thoughts to reality. Our „system engineering‟ approach

addresses inter-disciplinary dependencies during the product design and development and derives an integrated

solution from Mechanical, Electrical & Electronics, Electro-mechanical and IT disciplines

Mahindra Satyam (the new brand identity of Satyam Computer Services Ltd. - NYSE: SAY), a leading global

business and information technology services company, delivers consulting, systems integration, and outsourcing

solutions to clients in numerous industries across the globe. Mahindra Satyam leverages deep industry and functional

expertise, leading technology practices, and an advanced, global delivery model to help clients transform their

highest-value business processes and improve their business performance. The company's professionals excel in

engineering and product development, supply chain management, client relationship management, business process

quality, business intelligence, enterprise integration, and infrastructure management, among other key capabilities.

Mahindra Satyam development and delivery centers in the US, Canada, Brazil, the UK, Hungary, Egypt, UAE, India,

China, Malaysia, Singapore, and Australia serve numerous clients, including many Fortune 500 organizations.

In a regulatory filing to the BSE, Satyam said that the company had a net profit of Rs 4 cr in

Jan, 2009. The total income in Feb stood at Rs 637 crore while in Jan it was at Rs 647 crore.

The firm which has been acquired by Tech Mahindra in April, posted a net profit of Rs 181 cr

for the Oct-Dec quarter. The total income during the Dec quarter last year stood at Rs 2,206

crore.

Mumbai, Jun 9: Satyam Computers, the fraud hit IT company

in India reported a standalone net profit of Rs 52 crore for the month ended Feb 2009. In a regulatory filing

to the BSE, Satyam said that the company had a

http://news.oneindia.in/tag/net-profit

http://news.oneindia.in/tag/net-profit

Satyam Computer Services Ltd (SATYAMCOMP:EQ)

Paidup Value 2

Face Value: 2 Market Lot: 1

ISIN Code INE275A01028

Listing Date 01-DEC-1999

High Low Close

Last 75.85 66.60 70.65

Prev. 75.50 69.35 71.05

Weekly 79.85 70.30 77.60

52 week 444.80 6.30

Monthly 88.95 52.75 71.00



61.75 66.15 71.00 75.40 80.25


5 D 8 D 13 D 20 D 39 D 50 D 200 D

74 73 74 76 66 62 137

Other indicators:



5 day 10 day 20 day

Highest close 77.60 77.60 80.85

Lowest close 70.65 70.65 70.65


Prev resistance

Prev support

Weekly high

Weekly low

Monthly high

Monthly low

80

70

80

70

89

53

Effect of Economic growth on Share Market

Three most significant to stock market investors are inflation, gross domestic product (GDP),

and labor market data. I try at all times to keep in mind where these three are in relation to the

current stage of the economic cycle.

INFLATION

Inflation is a significant indicator for securities markets because it determines how much of the

real value of an investment is being lost, and the rate of return you need to compensate for that

erosion. For example, if inflation is at 3% this year, and your investment also increases by 3%, in

real terms you have just managed to stay even. And to take on market risk, most individuals

require a “risk premium” above and beyond the inflation rate. So investors who buy stocks do so

expecting they will get a return equal to (or better than) that risk premium adjusted by the

inflation rate. So the higher the inflation rate, the higher nominal return is needed for a stock

price to remain the same.

But the effect inflation has on the stock market is even more complicated than that. The main

impact of inflation on stock prices actually comes from the effect it has on a company’s earnings.

Low inflation keeps a company’s costs down, and increases profits. So all other things being

equal, (a favorite phrase of all economists), low inflation is better for the market than high

inflation.

There are of course some problems with this measure as well. For one thing, the products rarely

remain exactly the same, and it is difficult to strip out how much of an increase is due to

inflation, and how much is due to other factors such as improvements in quality. Also, the

composition of what people buy changes over time. In fact, many of the goods now included

were not even invented 20 or 30 years ago. Still, it is the best proxy currently available, and at

least in the short- to medium-term, is the number that investors focus on when making their

decisions

GROSS DOMESTIC PRODUCT

While GDP is an important component in inflation, it is also important as an economic indicator

in its own right. When compared to the previous year’s reading, it tells you how fast the

economy is growing (or contracting). GDP is the rupees value of all goods and services produced

by a given country during a certain period. It is measured by either adding all of the income

earned in an economy, or by all the spending in an economy. Both measures should be roughly

equal.

Gross domestic income includes wages and salaries, corporate profits, interest collected by

lenders, and taxes collected by governments. GDP domestic expenditures includes consumer

spending, housing investment, government spending, business spending (investment in factories,

equipment, and inventory), as well as foreign spending on our exports minus our spending on

their imports. With so many individual components affecting GDP (and through the output gap,

inflation) you can see how easy it is for the number of economic reports to mushroom.

GDP affects the stock market through its effect on inflation, as well as through its use a key

indicator of economic activity and future economic prospects by investors. Any significant

change in the GDP, either up or down, can have a major effect on investing sentiment. If

investors believe the economy is improving (and corporate earnings along with it) they are more

likely to pay more for a given stock. If there is a decline in GDP (or investors expect a decline)

they would be willing to pay less for a given stock, leading to a decline in the stock market.

Those who have made it through this far are probably familiar with an alternative view that has

been mentioned frequently in the news lately, that the stock market itself exerts a reverse effect

on economic activity, the so-called “wealth effect”. This theory says that a fall in the stock

market makes individual’s personal wealth (or perceived wealth) fall. They consequently stop

spending as much, and since consumer spending represents around two-thirds of GDP, a small

change in consumption exerts a significant effect on GDP. This means that as the stock market

falls, GDP also falls, which just further intensifies the downward pressure on the stock market.

THE LABOR MARKET

The final major factor influencing the economy is the labor market. The key indicators most

investors focus on are total employment and the unemployment rate

CONCLUSION

The economic evidence right now seems to indicate that the current output gap is quite large,

with plenty of room for expansion without inflation. Therefore reports showing an increase in

GDP, or unemployment decreasing, are good news and the market should go up. Any report that

shows inflation is higher than expected is bad, because it may indicate that we are overestimating

the size of the output gap, and should cause the stock market to drop. But in a later stage of the

economic cycle, when the output gap is smaller or non-existent, those same news items would

have the opposite effect on the market

Economic Growth Indicators

Gross Domestic Product

Gross domestic product (GDP) measures the total output of goods and services for final use

occurring within the domestic territory of a given country,

regardless of the allocation to domestic and foreign claims. Gross domestic product at purchaser

values (market prices) is the sum of gross value added by all

resident and nonresident producers in the economy plus any taxes and minus any subsidies not

included in the value of the products. The gross domestic

product estimates at purchaser values (market prices) are in constant 1995 U.S. dollars and are

the sum of GDP at purchaser values (value added in the

agriculture, industry, and services sectors) and indirect taxes, less subsidies. It is calculated

without making deductions for depreciation of fabricated assets or

for depletion and degradation of natural resources

Gross Domestic Product (GDP), PPP is gross domestic product converted to international dollars using Purchasing Power Parity (PPP) rates. An international

dollar has the same purchasing power in a given country as a United States Dollar in the United States. In

other words, it buys an equivalent amount of goods or services in that country. Data has not been adjusted to a constant year

Gross Domestic Product (GDP) per capita, PPP is gross domestic product converted to international dollars using Purchasing Power Parity (PPP) rates, and

divided by the population of the country that year. An international dollar has the same purchasing power

in a given country as a United States Dollar in the United States. In other words, it buys an equivalent amount of goods or services in that country

Average annual growth in Gross domestic product (GDP) measures the annual growth in GDP of a particular country from one year to the next. GDP

per capita, annual growth measures the annual growth in GDP per person of a particular country from

one year to the next

Gross Domestic Product (GDP), Percent from Agriculture measures the percent of total output of goods and services which are a result of value added by

the agriculture sector. The industrial origin of value added is determined by the International Standard

Industrial Classification (ISIC) revision 3. Agriculture corresponds to ISIC divisions 1-5 and includes forestry and fishing. Gross Domestic Product (GDP),

Percent from Industry measures the percent of total output of goods and services which are a result of value added by the industrial sector. Industry

corresponds to ISIC divisions 10-45 and includes

manufacturing (ISIC divisions 15-37). It comprises value added in mining, manufacturing (also reported as a separate subgroup), construction, electricity water, and gas.

Gross Domestic Product (GDP), Percent from Services measures the percent of total output of goods

and services which are a result of value added by the service sector. Services correspond to ISIC divisions 50-99 and they include value

added in wholesale and retail trade (including hotels and

restaurants), transport, and government, financial, professional, and personal services such as education,

health care, and real estate services. Also included are imputed bank service charges, import duties, and any statistical discrepancies noted by national

compilers as well as discrepancies arising from rescaling

Foreign direct investment is net inflows of investment to acquire a lasting management interest (10

percent or more of voting stock) in an enterprise

operating in an economy other than that of the investor. It is the sum of equity capital, reinvestment of earnings, other long-term capital, and short term

capital, as shown in the balance of payments. Data are in current U.S. dollars

Gross national savings is equal to gross domestic savings (gross domestic product minus final

consumption) plus net income and net current transfers from

abroad. The United Nations system of national accounts defines gross national income as "the aggregate value of the balances of gross primary incomes for

all sectors; (gross national income is identical to gross national product (GNP) as hitherto understood in

national accounts generally.)"

Inflation Rate The inflation rate is the percentage by which prices of goods and services

rise beyond their average levels. It is the rate by which the purchasing power of the people in a particular geography has declined in a specified period. The rate of inflation may be calculated weekly, monthly or annually. However, it is always express

The equation to calculate the inflation rate is:

Inflation Rate = (Po- P-1)* 100 / P-1,

where

Po = the present average price

P-1 = the price that existed last year.

The inflation rate is always stated as a percentage. Another way of calculating the inflation rate is to apply the log rule. The inflation rate is important, since it is subtracted from various economic rates in order to eliminate the impact of inflation. The real increase in wages is also counted by taking into account the prevailing inflation rate.

Economic Growth

Year GDP Annual Average Inflation Share market

2008-09 6.5 % 2.31% 4349.10

2007-08 8.7% 5.44% 4735.14

2006-07 9.6% 6.33% 3572.44

2005-06 9.4% 4.23% 2513.40

2004-05 7.5% 4.00% 1808.75 2003-04 8.5% 3.73% 1428.13

2002-03 3.8% 4.10% 1036.10

2001-02 5.8% 4.28% 1077.13

2000-01 4.4% 3.74% 1336.49 Year Change in GDP Change in IR Change in SM

2001-02 1.4 .54 -19.4%

2002-03 -2 -.18 -3.9%

2003-04 4.7 -.37 37.83%

2004-05 -1 .27 26.66%

2005-06 1.9 .23 26.65%

2006-07 .2 2.1 42.13%

2007-08 -0.9 -0.89 32%

2008-09 -2.2 -3.13 -8.15

CONCLUSION

When GDP rate above the 7% the market growth rate is also good as shown in table

Market show high growth rate when GDP is all time high i.e. 9.6% and market growth is

42.13% When GDP increase and inflation rate is down market is going up at a rate of

37.8.3% during current year both GDP and Inflation rate are decrease result market are

also down by 8.15% it shows GDP effect is more to the market than inflation rate


RELIGARE THE NAME IN WHICH YOU CAN TRUST

RELIGARE follow Rapid penetration strategy

Minimum broker charges as compare to other company

More advertisement on business based websites

Pan India footprint Near to your home/office Religare is present in all over India

1800 locations across more than 460 towns & cities.

Powerful research and analytics supported by a pool of highly skilled research analysts

Ethical business practices

Offline/Online delivery models

Single window for all investment needs through your unique CRN

Better back office service

Well qualified dealer and Relation manager

Better online services

More securities than other company

Provide both online and offline service

Provides technical analysis by mail/sms

Client oriented approach

Provide all market in a single platform

One of the “best-in-class” dealing rooms

Comparisons between the Religare and other Trading

company

Company

Name

Broker charges

R.M. Service

Online + offline service

Technical assistance

Opening Charges

Margin condition

ICICI

Direct

0.15/0.75 Intra/Deliv

Only

customer

care

Online only

Free

Rs 750+ Rs 5000 In account

7/3-4times

Intra/Deliv

Share Khan

0.05/0.30 Intra/Deli

Yes Both

Free

550 7/3-4times

Intra/Deliv

India Bulls


*if more than 1

Lakh than.02/.20

Yes Both Free

200 7/4times

Intra/Deliv

Kotak 0.05/0.45 Intra/Deli

Yes Both Free

Rs 750+ Rs 2500 In account

7/3times

Intra/Deliv

Reliance

Money


Yes Both Paid

500 7/3-4times

Intra/Deliv

SMC 0.15/0.50 Intra/Deli

Yes Both Free

500 7/3-4times

Intra/Deliv

India

infoline


Yes Both Free

450 7/3-4times

Intra/Deliv

Religare 0.02/0.20 Intra/Deli

*if more than

1 Lakh

than.01/.10

Yes Both Free Nill 20/6-8times Intra/Deliv

As the table shows Religare provide better services on minimum broker charges with higher

margin condition it helps to get the maximum market share which increased its profit and help to

the company to increase it growth rate .The Company has posted a net profit of Rs 31.646 million in

Q1 2009.

Some Suggestions to further enhancing the services

All other trading company provide the online demo on their sites but it is not available on Religare

site

Religare main focus only in trading by RM. it have to focus on both because the internet

population in India grew at 33 per cent and people prefers to do online trading

Provide Pdf form on Religare site.

IPO news flash on the site

Selected news Flash on the sites which effect on share as suggested by your research

group

Bibliography

- Apax Partners, Unlocking global Value Report, 2006 - Citigroup, Y. Huang and C. Tan, Asia-Pacific Economic Strategy, June 2006 - Economist Intelligence Unit, Foresight 2020: Economic, industry and corporate trends, March 2006 - Ernst and Young, Transition: Global Venture Capital Insight Report 2006 - Ernst & Young, Renewal and new frontiers, 2005 - Fenwick & West LLP, F.M. Greguras and S. R. Gopalan, Update to Structuring Venture Capital and other investments in India - PriceWaterhouseCoopers, J. Haksworth, The World in 2050, March 2006 - PriceWaterhouseCoopers, Global Private Equity Report 2005 - PriceWaterhouseCoopers, M&A Bulletin India 2005 - Wharton Private Equity Review, Finding Value in a crowded market, 2006 - http://www.worldbank.org Fiancé Management By I.M. panday - Bloomberg.com, Blackstone, Still Seeking a Deal, Plans $500 Million India Fund, June 12 2006 - Equity-Investment and Economic Growth

in India: 1970-1991* V.N. ATTARI**

NEERA VERMA**

www.nseindia.com

www.religare.com

www.buzzingstock.com

www.moneycontrol.com

www.indiainfoline.com

www.smc.com

www.ibf.org www.finmin.nic.in www.indiabudget.nicin

http://www.nseindia.com/

http://www.religare.com/

http://www.buzzingstock.com/

http://www.moneycontrol.com/

http://www.indiainfoline.com/

http://www.smc.com/

http://www.ibf.org/

http://www.finmin.nic.in/

http://www.indiabudget.nicin/

Equity Investment and Economic growth of India & Market stratrgies of Religare

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