ecnomic growth india

8/8/2019 ecnomic growth india

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

AND MARKETING STRATEGIES OF RELIGAREUnder the Supervisor: Internal Guide:Mr. Amandeep Shaney Mary Jacintha

(AVP) (Lecturer)RELIGARE SECURITIES CDAC Noida

Presented by: ChandanParsadMBA (SEM) 1


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Objective & Scope of Work

Introduction Religare Securities Limited

Organization Chart

Equity share introductionIntroduction Indian Equity Industry

Introduction of the Company

Analysis

Conclusion

Effect of Economic growth on Share Market

Marketing Strategies of Religare

Suggestions


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Objective: The mainobjective ofthe projectisto analysisthe importance

ofequityinvestmentinthe processofeconomic developmentin India whatisthe

effectofeconomy development and analysisthe which stockis good forinvestment.

Scope of WorkEquityinvestmentin Nifty50 Index during January09tojune09

Company1.SBI

2.Reliance Industry Ltd

3.Larsen & Tourbo Ltd

4.Tata Steel

5.Infosys Technology Ltd

6.Mahindra Satyam Computer

Effect ofEconomy Growth on share Market

Marketing STRATEGIES ofReligare

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Religare Securities Limited (RSL), a 100%subsidiaryofReligare Enterprises Limited is a

leading equity and securitiesfirm in India.

1. RSL is a memberofthe NationalStockExchange ofIndia,BombayStockExchange of

India, Depository Participant with NationalSecurities Depository Limited and Central

DepositoryServices (I) Limited, and is a SEBI approved PortfolioManager.

2. Religare has a verycredible Research and Analysis division, which notonlycaterstothe

need ofour Institutionalclientele,but also givestheirvaluable inputstoinvestment

dealers.

3. Pan India footprint4. Near to your home/office Religare is present in all over India

5. 1800locations across more than 460towns & cities

6. The Company has posted a net profitofRs 31.646 millionin Q1 2009.


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y Vision - Tobuild Religare as a globallytrusted brand in

the financialservices domain and presentit asthe

Investment GatewayofIndia'.y Mission - Providing complete financialcare drivenby

the core valuesofdiligence and transparency.

y BrandEssence - Corebrand essence is Diligence and

Religare is drivenby ethical and dynamic processesfor

wealth creation.

y Awards wonbyReligare AssetManagement

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TOP MANAGEMENTTOP MANAGEMENT

y Mr. Sunil Godhwani

CEO & ManagingDirector, Religare

Enterprises Limited

y Mr. Shachindra Nath

Group ChiefOperatingOfficer, Religare

Enterprises Limited

y Mr. Anil SaxenaGroup Chief Finance Officer, Religare

Enterprises Limited

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ORGANIZATIONORGANIZATION CHARTCHART

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1.1. Equity Shares: An instrument for raising capital for theEquity Shares: An instrument for raising capital for the

companiescompanies

A shareholderis entitled to an equal distributionin anyprofits,ifany are decided inthe form ofdividends.

Shares are often used to refertothe stockofownership right.

Shares also represent ownership ofotherclasses offinancial

assets,such as mutualfunds.

Types ofshares

1. Ordinary/commonshares

2. Preference shares


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Investors: Buyers ofEquity ShareInvestors: Buyers ofEquity Share

InvestorsInvestors are those who have excessfunds with them and wanttoare those who have excessfunds with them and wantto

employitfor returnsinfuture. Individuals, AssociationofPersons,employitfor returnsinfuture. Individuals, AssociationofPersons,Companies,Mutualfunds, Financial Institutions Foreign InstitutionalCompanies,Mutualfunds, Financial Institutions Foreign Institutional

InvestorsInvestors..Major categories ofinvestors

y Institutional Investor: A non-bank person or organization thattradessecuritiesin large enough share quantitiesor dollar amountsthattheyqualifyfor preferentialtreatment and lowercommissions.

y Retail Investor: Individualinvestors whobuy and sellsecuritiesfortheirpersonal account, and notfor anothercompanyororganization. Alsoknown

as an "individualinvestor" or "smallinvestor".Retailinvestorsbuyin muchsmaller quantitiesthanlargerinstitutionalinvestors.

y Qualified InstitutionalBuyer QIB: Primarily referring toinstitutionsthatmanage atleast 10croresinsecuritiesincludingbanks,savings and loansinstitutions,insurance companies,investmentcompanies, employee benefit

plans,or an entityowned entirelyby qualified investors.


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BenefitsBenefits from Equity Sharesfrom Equity Shares

There are income tax advantages generally available tocorporations that invest inpreferred stocks.

One big advantage to its issuer is that it is an instrument toraise the capital of company.

This allows financial institutions to satisfy regulatoryrequirements without diluting common shareholders. Saidanother way, through preferred stock, financial institutionsare able toput on leverage while getting equity credit.

An "individual investor" or "small investor" gets benefitedby getting interest or dividends.


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Indian Equity IndustryIndian Equity Industryy The equityindustryin India is more than 19yearsold. The firstventure

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

y In India today, manyfundsthat have beensetup inthe last9years are

focused oninformationtechnology (IT).

y In 2008,fundsbroadened theirinterestto a range ofsectorsincluding

manufacturing, health care,banking and financialservices,pharmaceuticals, engineering,textiles, and telecommunicationstechnology

y While manyinvestors have allocated more to equity as an alternative asset

class, equityisstillunderinvestedbecause not enough fund managers have

the experience and financialbacking needed to ensure sustainable

operations. As a result,the equity Investment rate in India isstill wellbelow the levelsinthe RepublicofKorea and Singapore

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State Bankof IndiaState Bankof India

y The evolution of State Bankof Indiacan be traced back

to the firstdecade ofthe 19th century. It began with the

establishment ofthe BankofCalcutta inCalcutta, on2

June 18

06y The corporate center of SBI is located in Mumbai.

y SBI has about10000+ branches

y India largest PSU bank

y Net profit9,121.24Cr in2008-09

y SBI provides easy access to money to its customers

through more than8500ATMs in India.

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Reliance GroupReliance Groupy The Reliance Group, founded by Dhirubhai H.Ambani (1932-

2002), is India's largest private sector enterprise, withbusinesses inthe energy andmaterials value chain

y Reliance Industries Limited,is a Fortune Global500company

and isthe largest private sectorcompanyin India.

y

The Companynow hasoperationsthatspanfrom theexploration and productionofoil and gastothe manufacture

ofpetroleum products, polyester products.

y The world's largest producer ofPolyester Fibre and Yarn

y 4th largest producer ofParaxylene (PX)andPurified

TerepthalicAcid (PTA)

y 6th largest producer of Mono Ethylene Glycol (MEG)

y 7th largest producer ofPolypropylene (PP)

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

construction and manufacturing company. Itisone ofthelargest and most respected companiesin India's private sector.

y Larsen & Toubro Limited is a Forbes Asia Fabulous50

company.

y

Record ofachievementsy India'sfirstindigenous hydrocracker reactor

y Oil and gas platform projects executed to globalbenchmarks

y The world'slargestcontinuouscatalyst regeneration reactor

y

Asia's highestviaduct- builtforthe KonkanRailwayy The world'slongest productsplitter

y The world'slongest LPG pipeline

y Building aninternationalclassfootballstadium in 260 days

y India'sfirstindigenous HydrocrackerReactor 15


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Tata SteelTata Steel

y Tata Steel is amongthe top ten steel producers inthe worldy Tata Steel Limited is a Forbes Asia Fabulous50company.

y Tata Steel has a balancedglobal presence in over 50

developed Europeanand fastgrowingAsianmarkets, with

manufacturing units in26 countries.y Corus main operatingdivisions comprise Strip Products,

LongProducts andDistribution & Building Systems Division.

y The NatSteel group produces constructiongrade steel such

as rebars, cut-and-bend cages for construction, mesh, precage

bore pile, PC wires andPC strand.

y Tata Steel Thailand produces round bars anddeformed bars

for the construction industry

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Infosys TechnologiesInfosys Technologies

y Infosys Technologies Ltd. wasstarted in 1981 with US$ 250.

Today,itis globalleaderinthe "next generation" ofIT andconsulting with revenuesofover US$ 4 billion

y Infosys' offeringsspanbusiness and technologyconsulting,applicationservices,systemsintegration, product engineering,custom software development, maintenance, re-engineering,

independenttesting and validationservices, IT infrastructureservices and business processoutsourcing

y Infosys has a globalfootprint with over50offices anddevelopmentcentersin India,China, Australia,the CzechRepublic, Poland,the UK,Canada and Japan. Infosys and its

subsidiaries have 103,905 employees ason June 30, 2009.

y Infosys Technologies Ltd.is a Forbes Asia Fabulous50company

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y Satyam Computer Services (Mahindra Satyam) is a

leading globalbusiness and informationtechnologyservicescompanythatleverages deep industry and functional expertise,

leading technology practices, and an advanced, global delivery

modelto help clientstransform their highest-valuebusiness

processes and improve theirbusiness performance

y Service Offerings

y MechanicalEngineering Solutions

1. ProductEngineering

2. Manufacturing Engineering

y Hi-Tech solution

1. Embedded Design

2. Embedded Verification & Validation

y

Geographical InformationSystems 18


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AnalysisAnalysisy Fundamental Analysis

y Earnings pershare (EPS) ratio

y Price earnings ratio (P/E ratio)

y ReturnonShareholders Investmentor NetWorth Ratio

y TECHNICAL ANALYSISy Candlestick Chart

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Moving AverageMoving Average

Convergence/Divergence (MACD)Convergence/Divergence (MACD)

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Fundamental AnalysisFundamental Analysis

Company

Factors

SBI RIL L&T TATA

steel

Infosys

EPS (26-

mar-2007)

86.29 78.25 49.53 72.71 66.14

P/E 11.74 24.82 43.66 8.30 29.06

EPS (26-

mar-2008)

106.56 133.82 74.34 64.14 78.15

P/E 16.08 17.18 31.72 11.79 22. 84EPS (26-

mar-2009)

143.67 97.07 59.44 71.18 101.73

P/E 7.063 16.12 27.09 5.46 17.7521


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EPS GraphEPS Graph

0

20

0

60

80

100

120

1 0

160

SBI RIL L&T TATAsteel

Infosys

EPS (26-march-2007)

EPS (26-march-2008)

EPS (26-march-

2009)

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Fundamental AnalysisFundamental AnalysisCompany

Factors

SBI RIL L&T TATA

steel

Infosys

Dividend

Paid

March07

140% 110% 1100% 155% 270%

Dividend

Paid

March08

215% 130% 650% 160% 665%

Dividend

Paid

March09

290% 160% 850% 200% 470%

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Dividend GraphDividend Graph

0%

200%

400%

600%

800%

1000%

1200%

SBI RIL L&T T

AT

A steel Infosys

DividendPaid March07



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SBISBITECHNICAL ANALYSISTECHNICAL ANALYSIS

Prev resistancePrev resistance 18

4018

40Prev supportPrev support 15991599

Weekly highWeekly high 18221822

Weekly lowWeekly low 17211721

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SBISBI

y INVESTMENT BENEFITS

y High Growth rate inthe share price i.e. better return oninvestment

y Dividends paid is also high which create confidence amongtheinvestor

y RISKS

y Very volatile innaturey Conclusion:

y SBI is very good stock

y Fundamental is very good

y Volume inTrading is very good it show it is very active shares

y Very Stable Company

y Good for both longtermand shortterm investor

y Welcome to SMC Global.htm

y Welcome to SMC Global7divid.htm

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TECHNICAL ANALYSISTECHNICAL ANALYSISPrev resistancePrev resistance 21132113

Prev supportPrev support 19001900Weekly highWeekly high 21132113


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Reliance Industries LtdReliance Industries Ltdy INVESTMENT BENEFITS

y High Growth rate inthe share price i.e.betterreturnoninvestment

y Dividends paid is also high which createconfidence among the investor

y

KGband show the brightfuture ofthe companyy RISKS: Veryvolatile innature

y Conclusion:

y RELIANCEisvery good stock

y Fundamentalisvery good

y Volume in Trading isvery good itshow itisveryactive shares

y VeryStable company

y Good forboth long term and shortterm investor

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Prev supportPrev support 14401440Weekly highWeekly high 16601660


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Larsen & Toubro LimitedLarsen & Toubro Limitedy INVESTMENT BENEFITS

y High Growth rate inthe share price i.e.better returnon

investmenty Dividends paid is also high which create confidence among the

investor

y GoodFuture Project

1 L&TbagsRS. 6510 millionsordersfor projectsin HydrocarbonSector

2 L&TbagsRS. 6510 millionsElectrical Project Orders

y RISKS

y Veryvolatile innature

y Conclusion:

y L&T isvery good stock

y Growth of23%overthe previousyear


y Volume in Trading isvery good itshow itisvery active shares

y VeryStable Company


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TECHNICAL ANALYSISTECHNICAL ANALYSIS

Prev resistancePrev resistance 443443

Prev supportPrev support 380380

Weekly highWeekly high 443443Weekly lowWeekly low 381381

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Tata Steel LimitedTata Steel Limitedy INSTMENT BENEFITS

y High Growth rate inthe share price i.e.better returnoninvestment

y Good Future Project

y India:The Company has embarked uponsetting up three greenfield steel plantsineastern India:

y 12 MTPA* plantin Jharkhand

y 6 MTPA plantin Orissa

y 5MTPA plantinChhattisgarh

y

JamshedpurSteelWorks willbecome a 10MTPA unitby 2010.*MTPA = milliontons per annum

y Overseas:

y Vietnam

y RISKS


y

Conclusion:y TATA STEEL isvery good stock

y Revenues grewby 12.0%


y Volume in Trading isvery good itshow itisvery active shares


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Prev supportPrev support 17011701

Weekly highWeekly high 18601860Weekly lowWeekly low 17481748

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Infosys Technologies Ltd.Infosys Technologies Ltd.y INVESTMENTBENEFITS

y High Growth rate inthe share price i.e.better returnon

investmenty Dividends paid is also high which create confidence

among the investor

y Telstra Selects Infosys as a Key Partner

y 27 clients were added during the quarterby Infosys and its

subsidiariesy RISKS


y Conclusion:

y Infosysisvery good stock

y Revenues grewby 12.7%y Fundamentalisvery good

y Volume in Trading isvery good itshow itisvery activeshares


y Good forboth long term and shortterm investor 34


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y TECHNICAL ANALYSISPrev resistance 89Prev support 70

Weekly high89

Weekly low 70

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Satyam.Satyam.y INVESTMENT BENEFITS

y High Growth rate inthe share price i.e.betterreturnoninvestment (150%)

y RISKS


y Facing management problem

y Conclusion:y Satyam isvery riskystock

y Net profit 4 Crin Q1

y Volume in Trading isvery good itshow itis

very active sharesy VeryStable Company due toMahindra group


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0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

140.00%

160.00%

SBI Reliance Infosys tata steel L&T satyam

Growth of share


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Effect of Economic growth onEffect of Economic growth on

Share MarketShare Markety Three mostsignificanttostockmarketinvestors

are inflation, gross domestic product (GDP), and

labor market data.

y

INFLATIONy GROSS DOMESTIC PRODUCT

y THE LABOR MARKET

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E i G thE i G th


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Economic GrowthEconomic Growth

Year GDP

Annual avg.

Inflation

share market

NSE

2000-01 4.40% 3.74% 1336.49

2001-02 5.80% 4.28% 1077.13

2002-03 3.80% 4.10% 1036.10

2003-04 8.50% 3.73% 1428.13

2004-05 7.50% 4.00% 1808.75

2005-06 9.40% 4.23% 2513.40

2006-07 9.60% 6.33% 3572.44

2007-08 8.70% 5.44% 4735.14

2008-09 6.50% 2.31% 4349.1

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GDP & Inflation GraphGDP & Inflation Graph

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

GDP

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FindingFinding


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NSE GraphNSE Graph

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

share market NSEsharemarketNSE

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MARKETING STRATEGIES OF RELIGAREMARKETING STRATEGIES OF RELIGARE

y RELIGARE follow Rapid penetration strategy

y Minimum broker charges as compare to other

company

y Provide all market in a single platform

y

One ofthe best-in-class dealing roomsy Pan India footprint

y Near to your home/office Religare is present in all

over India

y 1800locations across more than 460towns & cities.

y More advertisement on business based websites

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ComparisonsComparisons

Company Name Broker charges Margin condition

ICICI Direct 0.15/0.75In/De 7/3- 4timesInt/Delv

Share Khan 0.05/0.30In/De 7/3- 4timesInt/Delv

India Bulls 0.10/0.5

0In/D

e7

/4timesInt/D

elvKotak 0.05/0.45In/De 7/3timesInt/Delv

Reliance Money 0.02/0.75In/De 7/3timesInt/Delv

SMC 0.15/0.50In/De 7/3timesInt/Delv

India info line 0.05/0.30In/De 7/3- 4timesInt/Delv

Religare 0.02/0.20In/De 20/6-8timesInt/Delv

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Some Suggestions to further enhancing theservices

y Allothertrading company provide the onlinedemoontheirsitesbutitisnot available onReligare site

y Religare mainfocusonlyintrading byRM.it

have tofocusonboth because the internetpopulationin India grew at 33 percent andpeople prefersto doonline trading

y Provide Pdf form onReligare site.y

IPO newsflash onthe sitey Selected news Flash onthe sites which effecton

share assuggested byyour research group

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