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India is a developing country. Nowadays many people are interested to invest in financial markets especially on equities to get high returns, and to save tax in honest way. Equities are playing a major role in contribution of capital to the business from the beginning. Since the introduction of shares concept, large numbers of investors are showing interest to invest in stock market. In an industry plagued with skepticism and a stock market increasingly difficult to predict and contend with, if one looks hard enough there may still be a genuine aid for the Day Trader and Short Term Investor. The price of a security represents a consensus. It is the price at which one person agrees to buy and another agrees to sell. The price at which an investor is willing to buy or sell depends primarily on his expectations. If he expects the security's price to rise, he will buy it; if the investor expects the price to fall, he will sell it. These simple statements are the cause of a major challenge in forecasting security prices, because they refer to human expectations. As we all know firsthand, humans expectations are neither easily quantifiable nor predictable. If prices are based on investor expectations, then knowing what a security should sell for (i.e., fundamental analysis) becomes less important than knowing what other investors expect it to sell for. That's not to say that knowing what a security should sell for isn't important--it is. But there is usually a fairly strong consensus of a stock's future earnings that the average investor cannot disprove Fundamental analysis and technical analysis can co-exist in peace and complement each other. Since all the investors in the stock market want to make the maximum profits possible, they just cannot afford to ignore either fundamental or technical analysis.
Equity/Share Total equity capital of a company is divided into equal units of small Denominations, each called a share. For example, in a company the total Equity capital of Rs 2,00,00,000 is divided into 20,00,000 units of Rs 10 Each. Each such unit of Rs 10 is called a Share. Thus, the company then is said to have 20,00,000 equity shares of Rs 10 each. The holders of such shares are members of the company and have voting rights. Equity Investment When a person buys a share of a company you become a shareholder in that company. Shares are also known. Equities have the potential to increase in value over time. Research studies have proved that the equity returns have outperformed the returns of most other forms of investments in the long term. Investors buy equity shares or equity based mutual funds because: Equities are considered the most rewarding, when compared to other investment options if held over a long duration. Research studies have proved that investments in some shares with a longer tenure of investment have yielded far superior returns than any other investment. Equity analysis Professional investor will make more money & less loss than, who let their heart rule. Their head eliminate all emotions for decision making. Be ruthless & calculating, you are out to make money. Decision should be based on actual movement of share price measured both in money & percentage term & nothing else. Greed must be avoided patience may be a virtue, but impatience can frequently be profitable. In Equity Analysis anticipated growth, calculations are based on considered FACTS & not on HOPE. Equity analysis is basically a combination of two independent analyses, namely fundamental analysis & Technical analysis. The subject of Equity analysis, i.e. the attempt to determine future share price movement & its reliability by
turnover. A general investor can apply the principles by using the simplest of tools: pocket calculator. 3. Assumptions for the Equity Analysis 1. but does discuss a method which enables the investor to arrive at buying & selling decision. ruler. It appeals mainly to short term traders.e. Cash management gets the magnitude role. Portfolio management. Technical analysis refers to the study of market generated data like prices & volume to determine the future direction of prices movements. . liquidity. The focus of technical analysis is mainly on the internal market data. Works only in normal share-market conditions with great reliability. profitability & financial health was checked & analysis with the help of ratio analysis for the purpose of long term successful investment. 2. pencil. it also works in abnormal share-market conditions. prices & volume data. this equity analysis does not discuss how to buy & sell shares. leverage. but with low reliability. Fundamental analysis is useful in long term investment decision.references to historical data is a vast one. because the scenario of equity analysis is revolving around the term money 4. chart paper & your cautious mind. It should be pointed out that. risk management was up to the investor s knowledge. watchful attention. In Fundamental analysis company s goodwill. its performances. Technical analysis mainly seeks to predict the short term price travels. covering many aspect from the calculating various FINANCIAL RATIOS. so the investment object has vital importance associated to return along with risk. Equity analysis is purely based on the INVESTMENT PHILOSOPHY. plotting of CHARTS to extremely sophisticated indicators. It is the oldest approach to equity investment dating back to the late 19th century. The financial analysts always need yardsticks to evaluate the efficiency & performances of any business unit at the time of investment. i.
perceptions. Capital can be acquired in two ways by issuing shares or by taking debt from financial institutions or borrowing money from financial institutions. The owners of the company have to pay regular interest and principal amount at the end. it is also used to signify the possibility of growth or decline in share price of the company. . it also has some exceptions. You are buying stock & not companies. 8.5. Also since equity analysts meet the management of companies they know the real picture of affairs in the company and they are also in regular informal briefings with other research analysts which helps them to be in a position to prudently recommend a position of the company. NEED OF THE STUDY To start any business capital plays major role. History repeats: investors & speculators react the same way to the same types of events homogeneously. 6. Capital market trend is always a friend. there is a need for the study of equity analysis to know the performance of the companies. An individual perceptions about the investment return & associated risk may differ from individual to individual. whether it is short run or long run. 10. Although the equity analysis is art as well as sciences so. On a broader role. So. 7. tradition s & trust. 9. the crowd Vc the individual. Equity research involves carrying out critical analysis to evaluate the fair value of stocks owned by a particular company. Capital market has a typical market psychology along with other issues like. so don t be curious or panic to do post mortem of companies performances. It is a known fact that growth or decline in the share price is driven by the probable operational and financial performance of the company in a few years and this forms the analytical backbone on which research analysts take decisions.
the project is concerned with only five banks among the major players in the Banking sector i. To help the investor for decision making in equity investment.e.e ICICI bank. The project is based on tools like fundamental analysis and ratio analysis. HDFC Bank.e.OBJECTIVES OF THE STUDY The objective of this project is to deeply analyze the public sector and private sector banks for investment purpose by monitoring the growth rate and performance on the basis of historical data. SCOPE OF THE STUDY The scope of this project is limited to only one sector i. The main objectives of the Project study are: 1. State Bank India bank. Banking sector. 5. YES bank. Also. METHODOLOGY Research design or research methodology is the procedure of collecting. Axis Bank. 3. To know about the banking sector in India and its recent trends and strategies. . To study the comparison between the private and public banks. This project is concerned with only one sector of companies in the stock market. analyzing and interpreting the data to diagnose the problem and react to the opportunity in such a way where the costs can be minimized and the desired level of accuracy can be achieved to arrive at a particular conclusion. To about the price movements of securities in private and public sectors. To make the industry and company analysis. 2. The project does not extend its scope to any other sector of companies. The scope of the study is identified after and during the study is conducted. 4. Further. the study is based on information of last five years i. from 2009 to 2013.
Earnings per share . Total debt to owners fund 7. They can be studied with ratios. DATA SOURCES: The proposed study is carried with the help of both primary and secondary sources of data. Return on assets excluding revaluations 5. and value in the market. The sample of the stocks for the purpose of collecting secondary data has been selected on the basis of Random Sampling. PRIMARY DATA: Relevant primary data would be collected with the help of the interview method. Total assets turnover ratio 6. 1. Current ratio 8. FUNDAMENTAL ANALYSIS TOOLS USED: These are the most popular tools of fundamental analysis. websites and other published materials of the company. The stocks are chosen from the automobile sector. Return on networth 4. Dividend per share 2. Return on long term fund 3. SECONDARY DATA: All the secondary data used for the study would be extracted from the annual reports. manuals. They focus on earnings. The stocks are chosen in an unbiased manner and each stock is chosen independent of the other stocks chosen. growth. Dividend payout ratio net profit 9.The methodology used in the study for the completion of the project and the fulfillment of the project objectives.
The study is restricted to five banks based on Fundamental analysis. Detailed study of the topic was not possible due to limited size of the project. This study has been conducted purely to understand Equity analysis for investors. for a period of 45 days.LIMITATIONS OF STUDY This study is limited to only to some selected banks (Public and Private). . There was a constraint with regard to time allocation for the research study i. The study is limited to the banks having equities.e.
Retail investors. Till some months ago. they make the underlying market more liquid The trading of commodities consists of direct physical trading and derivatives trading. thus providing an efficient portfolio diversification option. the value of global physical exports of commodities increased by 17% while the notional value outstanding of commodity OTC(over the counter) derivatives increased more than 500% and commodity derivative trading on exchanges more than 200%. Historically. This was nearly impossible in commodities except for gold and silver as there was practically no retail avenue for punting in commodities. pricing in commodities futures has been less volatile compared with equity and bonds. In the process. . retail investors can now trade in commodity futures without having any physical stocks Commodities actually offer immense potential to become a separate asset class for market-savvy investors. But commodities are easy to understand as far as fundamentals of demand and supply are concerned. the one for commodity futures plays a valuable role in information pooling and risk sharing. with the setting up of three multi-commodity exchanges in the country. For those who want to diversify their portfolios beyond shares. bonds and real estate.INTRODUCTION TO THE INDIAN STOCK MARKET Indian markets have recently thrown open a new avenue for retail investors and traders to participate in: commodity derivatives. Retail investors should understand the risks and advantages of trading in commodities futures before taking a leap. Like any other market. arbitrageurs and speculators. and facilitates decisions related to storage and consumption of commodities. The commodities markets have seen an upturn in the volume of trading in recent years. In the five year up to 2010. commodities are the best option. this wouldn't have made sense. who claim to understand the equity markets may find commodities an unfathomable market. Whatever it may be . The market mediates between buyers and sellers of commodities. For retail investors could have done very little to actually invest in commodities such as gold and silver or oilseeds in the futures market.
OTC trading accounts for the majority of trading in gold and silver. Global physical and derivatives trading of commodities on exchanges increased more than a third in 2010 to reach 1. partly offsetting the decline in downstream demand. plus unbridled speculation in forward markets.684 million contacts. As a result. precious metal accounted for 8% of OTC commodities derivatives trading in 2010. This will be a rare positive for manufacturing industries. manufacturers and speculators. The Indian broking industry is one of the oldest trading industries that have been around even before the establishment of BSE in 1875. energy 29% and industrial metals by 30%. The bubble popped in the closing months of 2008 across the board. exporter. Over 40% of quarter in China. Agricultural contracts trading grew by 32% in 2010. such as steel. It’s a diverse marketplace of farmers. Other commodities. Modern technology has transformed commodities into a global marketplace where a Kansas farmer can match a bid from a buyer in Europe. but also currencies and financial instruments such as Treasury bonds and securities futures. Present scenario Today’s commodity market is a global market place not only for agricultural products. which will experience a drop in some input costs. . Overall. Trading on exchanges in China and India has gained in importance in recent years due to their emergence as significant commodities consumers and producers. importers. The 2008 global boom in commodity prices. after years of record revenue.0 trillion.The notional value outstanding of banks’ OTC commodities’ derivatives contacts increased 27% in 2010 to $9. Precious metals trading grew by 3% with higher volume in New York being partially offset by declining volume in Tokyo. are also expected to tumble due to lower demand.for everything from coal to corn – was fueled by heated demand from the likes of China and India. down from their 55% share a decade earlier as trading in energy derivatives rose. farmers are expected to face a sharp drop in crop prices.
thus forcing them to find a place of their own.The early stock market saw a boom till 1865. Inception. which created a surge in retail investing. Bubble burst. The broad objectives of the SEBI includeo to protect the interests of the investors in securities o to promote the development of securities markets and to regulate the securities markets . banks. which was set up in 1988 as an administrative arrangement. A group of about 300 brokers formed the stock exchange in Jul 1875. which later turned into the Dalal Street. which led to the formation of a trust in 1887 known as the “Native Share and Stock Brokers Association” Beginning of a new phase.the Securities and Exchange Board of India (SEBI). A new set of economic and financial sector reforms that began in the early 1990s gave further impetus to the growth of the stock markets in India. Growth supporting factors-The early 1980s witnessed another surge in stock markets when major companies such as Reliance accessed equity markets for resource mobilization that evinced huge interest from retail investors.The roots of a stock market in India began in the 1860s during the American Civil War that led to a sudden surge in the demand for cotton from India resulting in setting up of a number of joint stock companies that issued securities to raise finance. with the introduction of Foreign Exchange Regulation Act (FERA) that led to divestment of foreign equity by the multinational companies. on whose building steps share brokers used to gather to seek stock tips and share news. disallowed them to gather there. what was then used to be called the share mania ended with burst of the stock market bubble. In the aftermath of the crash.A new phase in the Indian stock markets began in the 1970s. 1992. and then in Jul 1865. Setting up of SEBI. was given statutory powers with the enactment of the SEBI Act.
NSE was recognized as a stock exchange under the Securities Contracts (Regulations) Act 1956 in Apr 1993. Derivatives market – after cash market. the industry has found its way towards sustainable growth. The market can be divided into two that for exchange traded derivatives and that for over-the-counter derivatives. the first of such stock exchanges in India. greater transparency in price discovery and process driven operations that had significant bearing on further growth of the stock markets in India. . FINANCIAL MARKETS The financial markets have been classified as Cash market (spot market) – largest traded. A stock Broker is a regulated professional who buys and sells shares and other securities through market makers or Agency Only Firms on behalf of investors. To work as a broker a certificate of registration from SEBI is mandatory after satisfying all the terms and conditions. To speed the securities settlement process. the spot market or cash market is a commodities or securities market in which goods are sold for cash and delivered immediately. The National Securities Depository Limited (NSDL) set up by leading financial institutions. The Depositories Act 1996 was passed that allowed for dematerialization (and dematerialization) of securities in depositories and the transfer of securities through electronic book entry. the derivatives markets are the financial markets for derivatives. electronic trading.NSE was incorporated in Nov 1992 as a tax paying company. since stock exchanges earlier were trusts. Incorporation of NSE. The setting up of the National Stock Exchange brought to Indian capital markets several innovations and modern practices and procedures such as nationwide trading network. It commenced operations in wholesale debt segment in Jun 1994 and capital market segment (equities) in Nov 1994. being run on no-profit basis. Despite passing through a number of changes in the post liberalization period. commenced operations in Oct 1996.
These raw commodities are traded on regulated commodities exchanges. hence the supplier of funds may lend it. and those in need of cash may borrow the funds supplied.The bond market (also known as the debt. insurance funds) that can be used in favor of demand side. or fixed income market) is a financial market where participants buy and sell debt securities. those in need of interim financing (bridge financing). This equation originated from Keynesian Advocates. The theory explains that a given market may have excess cash. Action in financial markets by central banks is usually regarded as intervention rather than participation. Debt market . The earnings go to owner (Savers or Lenders) and the margin goes to the banks. hence demanding excess money (in the form of borrowed equity) in favor of the Supply Side. Investor vs. it will reflect the amount paid for the . Hence. When the principal and interest are added up. Commodities market – after commodities market. in which they are bought and sold in standardized contracts. hence supplying excess money (in the form of investments) in favor of the demand side. those in need of long-term funds for special projects (capital funds for venture financing). (but not earning) or for road network (toll ways) or port development (capable of earnings). The supply side consists of: those who have aggregate savings (retirement funds. pension funds. demand side A market participant may either be coming from the Supply Side. So much pensions or savings can be invested for school buildings. The demand side consists of: those in need of cash flows (daily operational needs). orphanages. The origin of the savings (funds) can be local savings or foreign savings. credit. the equation: aggregate savings equals aggregate investments. PARTICIPANTS IN FINANCIAL MARKET There are two basic financial market participant categories. Commodity markets are markets where raw or primary products are exchanged. Speculator and Institutional vs. Supply side vs. Retail. or coming from the Demand Side.
Investor vs. involves the buying. hedge fund. real estate. in the narrow sense of financial speculation. commodity derivatives. Retail Institutional investor An institutional investor is an investor. currencies. retirement fund. derivatives or any valuable financial instrument to profit from fluctuations in its price as opposed to buying it for use or for income via methods such as dividends or interest. that is financially sophisticated and makes large investments. Speculator Investor An investor is any party that makes an Investment. Institutional vs. and short-selling of stocks. currency. or mutual fund. collectibles. Speculators in an asset may have no intention to have long term exposure to that asset. distinct from hedging. insurance company. Speculation Speculation. an interest percentage for the cost of using the funds. institutional investors may often participate in private placements of securities. long term investing and arbitrage. often held in very large portfolios of investments. such as a bank. in which certain aspects of the securities laws may be inapplicable. Thus. Speculation or agiotage represents one of three market roles in western financial markets. . commodities. the term has taken on a specific meaning in finance to describe the particular types of people and companies that regularly purchase equity or debt securities for financial gain in exchange for funding an expanding company.user (borrower) of the funds. selling. or other assets. personal property. Less frequently the term is applied to parties who purchase real estate. bonds. However. holding. Because of their sophistication.
You need to deposit money with a . the institution is said to be acting as a dealer.” The broker is in possession of the securities on behalf of the underlying shareholder. Although many broker-dealers are "independent" firms solely involved in brokerdealer services. Need of a broker A broker is a person or firm that facilitates trades between customers. 1. When executing trades for its own account. It is advisable to conduct transactions through an intermediary. Retail investors can be further divided into two categories of share ownership. Many registered shareholders have physical copies of their stock certificates. the institution is said to be acting as a broker. a company or other organization that trades securities for its own account or on behalf of its customers. A Beneficial Shareholder is a retail investor who holds shares of their securities in the account of a bank or broker. investment banks orinvestment companies. For example one needs to transact through a trading member of a stock exchange if they intend to buy or sell any security on stock exchanges.Retail investor A retail investor is an individual investor possessing shares of a given security. also known as “in Street Name. 2. One needs to maintain an account with a depository if they intend to hold securities in demat form. or they may become a part of the firm's holdings. When executing trade orders on behalf of a customer. It is a natural person. Securities bought from clients or other firms in the capacity of dealer may be sold to clients or other firms acting again in the capacity of dealer. Meaning of broker/dealer A broker-dealer is a term used in United States financial services regulations. many others are business units or subsidiaries of commercial banks. A Registered Shareholder is a retail investor who holds shares of their securities directly through the issuer or its transfer agent.
in doing so. One gets guidance if you are transacting through an intermediary. however. does not assume any risk for the trade. There are two major stock-exchanges NSE (composition of 50 stocks) and BSE (Composition of 30 stocks).banker to an issue if you are subscribing to public issues. charge a commission. Stock Brokers come under the category of Market Players. A broking firm acts as an intermediary between NSE and Client. The broker does. The membership in the stock exchange can be granted as individual membership and corporate membership. A broker acts as a go between and. NSE BROKER CLIENT The market intermediaries play an important role in the development of Securities Market by providing different types of services. .
integrity. It is our earnest endeavor to enhance the trading experience of our customers through continuous improvement in our services. VISION To be a respected enterprise that provides best-of-breed financial solutions. Our values guide us through our actions. The Kellton Group is a member of the National Stock Exchange (NSE). VALUES Commitment. MISSION & VISION Our Mission is the foundation on which the organization is built. to become the best. passion and attitude are the core values that guide us through our actions. we offer you Broking and Wealth Management Services of world class standards with a personal touch. At Kellton. Our vision is our aspiration to continually improve and grow. Kellton is also registered as a Depository Participant with CDSL. with a personal touch. dedication.COMPANY PROFILE – KELLTON FINANCIAL SERVICES Kellton is a professionally managed organization and is fast emerging as one of the most respected Stock Broking and Wealth Management Companies in India. team work. We are dedicated to provide services with a personal touch so that our customer gets customized solutions and attention.Bombay Stock Exchange (BSE) and the two leading Commodities Exchanges in the country MCX and NCDEX. MISSION To take financial services to the next level of personalization and customization with emphasis on value of interactions at a more personal level than just transactions at a business level. . We thoroughly understand the value of relationships with our customers as opposed to just transactions at a business level.
Kellton is a trading member in the NSE Derivatives segment which offers a gateway to the exciting world of derivatives trading on Equities and Indices. John Linton 5. At Kellton. Mihir Shah 6. Based on the . arbitrageurs and speculators immense potential to earn returns. Commodity derivatives that were initially developed for risk management purposes are now growing in popularity as an investment tool. Moreover our core theme of personalized services implies that you can reach our professionals to get complete understanding of the transactions at any phase of the process. Rajendrana Niwadekar 3. where and how to invest.MANAGEMENT TEAM 1. meticulous and personalized approach to maximize your returns and reach your investment goals by trading effectively in equities. Srinivas Potluri SERVICES EQUITY Kellton offers you a strategic. Niranjan Chintam 2. it can also be a very risky proposition due to high risk-return trade off prevalent in the stock market. we identify good opportunities to invest in and provide guidance in the dynamic world of stock markets with suitable trading solutions and value added tools to enhance your trading experience. However. The derivative market is a highly lucrative market that gives investors. COMMODITIES Commodities Derivatives market has emerged as a new avenue for investors to create wealth. Hence. it is more appropriate to take the help of an experienced and trustworthy expert who will guide you as to when. Krishna Chintam 4. Over the years the Futures & Options segment has emerged as a popular medium for trading in the financial markets.
Identify target and assess potential acquirers and offer valuation analysis. Sell-side Advisory As an advisor to selling stakeholders we analyze the options objectively and dispassionately keeping in view the long term benefit to both parties. arbitrageurs and speculators immense potential to earn returns. analyze and suggest financial & strategic alternatives. Kellton we understand the shifts and swings of Commodities markets and will provide you with information about the volatility of the investible assets and when and how to diversify them during high volatility to stabilize your returns. At. Our active involvement in deal structuring and contract negotiations would help you understand the implications of the transaction from total perspective and be fully aware of all legalese involved. We perform the due diligence so as to avoid any surprises during value disclosure. restructurings and reorganizations Advising on transaction structuring. Assess. Our expertise. timing. Commodities form a separate asset class offering investors. Negotiating and closing transaction deals. We closely monitor and assess the performance of all classes of investments and will provide you with a customized solution into the proper use of commodities within the mix of other asset classes to maximize your returns and minimize risks.fundamentals for demand and supply. Our relationships with many leading financial groups enables our clients to get access to the emerging pool of private equity financings. experience and our network make us uniquely positioned to find an ideal partner for your company and assess the mutual benefits from this transaction. Advise on asset purchases and dispositions. . INVESTMENT BANKING MERGERS & ACQUISITIONS Kellton’s extensive expertise extends to a wide range of M&A transactions customized to cater to the specific requirements of each of our client. pricing and potential financing Our concern goes beyond immediate value and emphasizes enduring partnership based on symbiotic relationship.
Determining the right debt-equity ratio and gearing ratio for client Exploring refinancing alternatives of the clients Counsel on rehabilitation and turnaround management. We assess optimal capitalization and recognize the means to increase funds. We take care of the necessary communication to investors and manage due diligence process. Counseling on business agreements like Joint Ventures and sales of certain business units. private equity companies and other strategic business partners. After enlisting a group of potential target investors we position the company effectively to the investors. Risk management Devising suitable strategies for fund raising . Upon confirmation of interest of the target company. CAPITAL RESTRUCTURING Capital restructuring may involve refinancing at every at every level of capital structure which include securing asset-based loans & debt financing and achieving strategic partnership by identifying suitable prospects. brand image among stakeholders etc and perform a due diligence process to showcase the potential value of the transaction.Buy-side Advisory Our extensive network comes handy in searching & selecting a wide-range of suitable candidates. We help buyers identify the attributes of the target company including various parameters. value recommendation and comparative analysis. CORPORATE FINANCE We work with several companies in various stages of growth and help them to raise private capital through Venture Capital firms. we examine various factors like financial data.
ADVANTAGES OF DEMAT ACCOUNT AT KELLTON Automated pay-in facility without executing any physical instructions Demat Statements on demand Competitive transaction charges. Workflow: We understand client needs thoroughly. Kellton is a registered Depository participant with CDSL. WEALTH MANAGEMENT Wealth Management helps you maximize your returns in asset management. Finalize on the optimum deal structure. At Kellton we offer your client advisory services with the objectives of superior returns. Developing strategies and innovative models to build wealth from middle market business assets requires expertise and experience. Online access to Demat Statements . We decide on the most effective debt funding strategy We approaching the prospective lenders and discuss & negotiate. risk minimization and portfolio diversification.DEBT SYNDICATION We arrange finance from multiple banks/financial institutions to provide the borrower a credit facility using common debt documents. risk free depository services. We then narrow upon lenders based on certain parameters. DEPOSITORY SERVICES We provide the dual benefits of trading and depository services at Kellton where you can experience efficient. We help companies to leverage on debt as an instrument to raise capital through structured financial products for various needs. Even a seasoned investor knows that effective timing of markets is not possible and therefore professional and expert advice is essential to generate superior returns from the market. investment management and portfolio management.
Reduced paper work Efficient pledge mechanism Faster settlement process resulting in increased liquidity for your securities No extra charges for Transactions and Holding Statements Speedy disbursements of non-cash benefits (Bonus & Rights) .