Pranab Nanda Pratik Parikh Jaydeep kalaria Ankit Iyer

Objective of the Study Scope Significance and Relevance of the Study Limitations of the Study Financial Market Equity Market Investing Principles Rules & Regulations in the Indian Equity Market IT Equity Sector Status SWOT Analysis of Indian IT Sector Selection of Key Indicators for Stock Selection Key Indicators

Conclusions
Recommendations

To study three public limited companies in a particular sector; To compare certain critical financial ratios from investment point of view; To identify, analyse and evaluate factors that affect equity investment ; To select the best stock in the sector chosen;

The project covers sectoral analysis and equity analysis of three potential public limited companies of a particular sector;

The following components of the Equity market will be studied and

presented:
Prevailing policies as per Reserve Bank of India; Balance Sheet and Profit & Loss Analysis include Changes in Capital Structure, Returns on Investment, Return on Equity, Changes in Capital Structure, Bonus given by Company, Profit relativity, Market Price, Volume Analysis, Dividend Pattern; Fundamental analysis of 3 selected companies in IT sector;

To prepare guidelines for an investor to invest in equity market; To enhance wealth of investors and guide them through report; An Investor can assess and determine whether investment in any of

the proposed security is worth or not;

The project is based on secondary data available on public domain; Investment in Equity Market is subject to market risk. Investor should read our recommendations and the documents of the

company carefully before investing;

A mechanism that allows people to buy and sell (trade) financial securities (such as stocks and bonds), commodities (such as precious metals or agricultural goods) at low transaction costs and

at prices that reflect the efficient-market hypothesis.

facilitate: The raising of capital (in the capital markets)

The transfer of risk (in the derivatives markets)

The transfer of liquidity (in the money markets) International trade (in the currency markets) and are used to match those who want capital to those who have it.

Preferred as best Investment because of: the possibility of incredibly high returns and wealth creation; It will not only earn capital appreciation but also dividend yield also; Chances of getting bonus share. Entitle to have benefits of split share from corporate action of

company;
All dividends are tax free, one has to pay only a 10% short term capital gains tax on profits made within a year, and all profits earned after a year are exempted of long term capital gain tax; the investment is perfectly liquid as one can sell your share and redeem the gains at any time;

Invest for Real Returns Keep an Open Mind Never Follow the Crowd Everything Changes Avoid the Popular Learn from your Mistakes Buy During Times of Pessimism Hunt for Value and Bargains Search Worldwide No-one Knows Everything

Securities Exchange Board of India (SEBI), repeal of the Capital Issues (Control) Act, 1947;

Disclosure and Investor Protection (DIP) guidelines; Screen Based Trading Systems (SBTS) by NSE; National Securities Clearing Corporation Ltd., (NSCCL) in April 1996; Foreign Exchange Management Act, 1999; Foreign Direct Investment Policy in 2010;

STRENGTHS Large no. of talented graduates

WEAKNESS Scarce foreign language skills other than English.

Affordable and quality education as Lack of customer service culture compared to developed countries Expensive and poor quality telecom English language benefit infrastructure Well-developed IT industry Poor electricity supply Strong customer base of well known Cultural differences companies High attrition rates, therefore less Powerful venture capital interest in no. of people with extensive call investing in growth opportunity centre experience

OPPORTUNITIES THREATS Horizontal and vertical expansion of High Billing rates existing customer base into new Political instability markets Time zone difference between and India's competitors in Eastern Europe, and the Asia Pacific regions target markets offering cheap BPO services Increasing awareness of outsourcing Increasing technology automation services

To each purchase, one should make sure that one obtains (1) a minimum of quality in the past performance and current financial position of the company, and also (2) a minimum of quantity in

terms of earnings and assets per dollar of price.

Benjamin Graham Growth in Profit and Sales Earnings per Share Price Earning (P/E) Ratio DPS (Dividend per Share) Return on Net worth (Equity + Reserves) Dividend/ Net Profit Return on Long Term Funds (%) Price Analysis

Constant growth in sales and profit reflects efficient management policy, competitive marketing strategy, fair pricing model of products, and adoption of modern production technology and good working environment of organization.

One of the major factors for the dividend policy of the firm and market price of the company. A steady growth in EPS year after year indicates good track of profitability.

Measures the number of times the earnings of the latest year at which the share price of a company is quoted and is a barometer of the market sentiment; It signifies the number of years in which the earnings can equal the current market price; Companies with excellent track record of profitability, professional management and liberal distribution policy have high P/E multiple whereas companies with moderate track record, conservative distribution policy and average prospectus quote at low P/E multiple;

Determines what proportion of earnings is paid to share holders by way of dividends and what proportion is ploughed back in the firm for reinvestment purpose; Dividend policy of a firm depends on investor preference for current dividends, interdependency between dividend and investment decision, irrational behaviour of investor and firms, different taxation of dividends and capital gains and under pricing of equity issues;

Motivates share holder to invest in a company is the expectation of adequate rate of return on their invested funds and periodically they will want to assess the rate of return in order to decide whether to continue with their investment;

Indicates the extent of the net profits distributed to the shareholders as dividend; A high ratio signifies a liberal distribution policy and a low ratio reflects conservative distribution policy;

Basic principle of investment: buy low, sell high which is always ignored by the Investors and often get swept up in prevailing market sentiment.;

- For Investor The basic objective of an investor for making investment in stocks is to obtain higher returns by selling it at a higher price subsequently. The positive change in price of stocks and income in the form of dividends is expected by the investor when he invests his funds in the stock market.

From the analysis we can see that TCS and INFOSYS have given high dividends from year 2006 to 2010.
TCS and WIPRO have given maximum return from year 2006 to 2010.

- For Shareholder
The shareholder invests in the company for long term investment. They are always interested in profit and sales growth of the company, growth in earning per share and positive return on their investment.

From the analysis we can see that TCS and WIPRO have performed well from shareholder perspective in the time frame chosen.

The Journey of a Thousand Miles Begins with a Single Step