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compounded annual growth rate (CAGR)

public sector undertaking (PSU) banks


Public Sector Banks (PSBs) are banks where a majority stake (i.e. more than 50%)
is held by a government. The shares of these banks are listed on stock exchanges.
There are a total of 27 PSBs in India

Why Companies Issue Bonds


When companies need to raise money, issuing bonds is one way to do it. A bond
functions like a loan between an investor and a corporation. The investor agrees to
give the corporation a specific amount of money for a specific period of time in
exchange for periodic interest payments at designated intervals. When the loan
reaches its maturity date, the investors loan is repaid.
Bonds Versus Banks
The interest rate companies pay bond investors is often less than the interest rate
they would be required to pay to obtain a bank loan. Since the money paid out in
interest detracts from corporate profits, and companies are in business to generate
profits, minimizing the interest amount that must be paid to borrow money is an
important consideration.
Issuing bonds also gives companies significantly greater freedom to operate as they
see fit - free from the restrictions that are often attached to bank loans.
Bonds Versus Stock
Issuing stock, which means granting proportional ownership in the firm to investors
in exchange for money, is a popular way for corporations to raise money. From a
corporate perspective, perhaps the most attractive feature of stock issuance is that
the money generated from the sale of stock does not need to be repaid. There are,
however, downsides to stock issuance that may make bonds the more attractive
proposition
Stock issuance, on the other hand, puts additional stock shares in circulation, which
means that future earnings must be shared among a larger pool of investors. This
can result in a decrease in earnings per share (EPS), putting less money in owners'
pockets.

However, when a company declares bankruptcy, stockholders are the first to bear
losses. Creditors (including bond-holders) are next.

The BSE Sensex currently consists of the following 30 major Indian companies as of 10 April
2014.[4]
#
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30

Company
Axis Bank
Cipla
Bharat Heavy Electricals
State Bank Of India
HDFC Bank
Hero Motocorp
Infosys
Oil and Natural Gas Corporation
Reliance Industries
Tata Power
Hindalco Industries
Tata Steel
Larsen & Toubro
Mahindra & Mahindra
Tata Motors
Hindustan Unilever
ITC
Sesa Sterlite Ltd
Wipro
Sun Pharmaceutical
GAIL
ICICI Bank
Housing Development Finance Corporation
Bharti Airtel
Maruti Suzuki
Tata Consultancy Services
NTPC
Dr. Reddy's
Bajaj Auto
Coal India

Industry
Banking
Pharmaceuticals
Electrical equipment
Banking
Banking
Automotive
Information Technology
Oil and gas
Oil and gas
Power
Metals and Mining
Steel
Conglomerate
Automotive
Automotive
Consumer goods
Conglomerate
Iron and Steel
Information Technology
Pharmaceuticals
Oil and gas
Banking
Housing Finance
Telecommunication
Automotive
Information Technology
Power
Pharmaceuticals
Automotive
Metals and Mining

Scrip
532215
500087
500103
500112
500180
500182
500209
500312
500325
500400
500440
500470
500510
500520
500570
500696
500875
500295
507685
524715
532155
532174
500010
532454
532500
532540
532555
500124
532977
533278

The BSE has some reviews and modifies its composition to be sure it reflects current
market conditions. The index is calculated based on a free float capitalisation
method, a variation of the market capitalisation method. Instead of using a
company's outstanding shares it uses its float, or shares that are readily available
for trading. As per free float capitalisation methodology, the level of index at any
point of time reflects the free float market value of 30 component stocks relative to
a base period. The market capitalisation of a company is determined by multiplying
the price of its stock by the number of shares issued by of corporate actions,
replacement of scrips, etc

Here is the list of 50 companies that form part of CNX Nifty Index as on 3 March 2014:
S.No.
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28

Company Name
ACC Limited
Ambuja Cements Ltd.
Asian Paints Ltd.
Axis Bank Ltd.
Bajaj Auto Ltd.
Bank of Baroda
Bharat Heavy Electricals Limited
Bharat Petroleum Corporation
Bharti Airtel Ltd.
Cairn India Ltd.
Cipla Ltd.
Coal India Ltd.
DLF Limited
Dr. Reddy's Laboratories Ltd.
GAIL (India) Ltd.
Grasim Industries Ltd.
HCL Technologies Ltd.
HDFC Bank Ltd.
Hero MotoCorp Ltd.
Hindalco Industries Ltd.
Hindustan Unilever Ltd.
Housing Development Finance Corporation Ltd.
ITC Limited
ICICI Bank Ltd.
IDFC Ltd.
IndusInd Bank Ltd.
Infosys Ltd.
Jaiprakash Associates Ltd.

S.No.
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50

Company Name
Jindal Steel & Power Ltd.
Kotak Mahindra Bank Ltd.
Larsen & Toubro Ltd.
Lupin Limited
Mahindra & Mahindra Ltd.
Maruti Suzuki India Ltd.
NMDC Limited
NTPC Limited
Oil & Natural Gas Corporation Ltd.
PowerGrid Corporation of India Ltd.
Punjab National Bank
Ranbaxy Laboratories Ltd.
Reliance Industries Ltd.
Sesa Sterlite Limited
State Bank of India
Sun Pharmaceutical Industries Ltd.
Tata Consultancy Services Ltd.
Tata Motors Ltd.
Tata Power Co. Ltd.
Tata Steel Ltd.
UltraTech Cement Ltd.
Wipro

insurance
an arrangement by which a company or the state undertakes to provide a
guarantee of compensation for specified loss, damage, illness, or death in return for
payment of a specified premium.

inflation
a general increase in prices and fall in the purchasing value of money

GDP

The gross domestic product (GDP) is one the primary indicators used to gauge the
health of a country's economy. It represents the total dollar value of all goods and
services produced over a specific time period - you can think of it as the size of the
economy. Usually, GDP is expressed as a comparison to the previous quarter or
year. For example, if the year-to-year GDP is up 3%, this is thought to mean that the
economy has grown by 3% over the last year. Measuring GDP is complicated (which
is why we leave it to the economists), but at its most basic, the calculation can be
done in one of two ways: either by adding up what everyone earned in a year
(income approach), or by adding up what everyone spent (expenditure method).
Logically, both measures should arrive at roughly the same total.
The income approach, which is sometimes referred to as GDP(I), is calculated by
adding up total compensation to employees, gross profits for incorporated and non
incorporated firms, and taxes less any subsidies. The expenditure method is the
more common approach and is calculated by adding total consumption, investment,
government spending and net exports.
As one can imagine, economic production and growth, what GDP represents, has a
large impact on nearly everyone within that economy. For example, when the
economy is healthy, you will typically see low unemployment and wage increases as
businesses demand labor to meet the growing economy. A significant change in
GDP, whether up or down, usually has a significant effect on the stock market. It's
not hard to understand why: a bad economy usually means lower profits for
companies, which in turn means lower stock prices. Investors really worry about
negative GDP growth, which is one of the factors economists use to determine
whether an economy is in a recession.

which you are good at: Knowledge; Experience; Skills; Abilities

Qs on Inflation, WPI, CPI, CRR, SLR, Derivative- Futures , forwards Summer


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