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Introduction About Dhwaja Finance

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About Dhwaja FINANCE Dhwaja Share and Securities Private Ltd. (previously known as Dhwaja Securities and services private ltd.) promoted by Mr. Gaurang Shah and Mr. Sunil Anandpara in the year 2005 to carry on the business as share & Stock brokers and/or sub-brokers. In the process the company started its activity as client to main brokers of The Bombay Stock Exchange Ltd and The National Stock Exchange of India Ltd. Subsequently the company became sub broker of M/s Twin Earth Securities P. Ltd. main broker of The Bombay Stock Exchange Ltd and The National Stock Exchange of India Ltd. in the year 2007. The company has performed as sub broker of M/s Twin Earth Securities P. Ltd. for more then two years. In the Month November of 2009 the company had inducted director namely Mr. Hemal Shah. The company has plans to go retail and expand its activities in Maharashtra and Gujarat to begin with in addition to the existing retail and HNI client base. The company has also procured a business premises in Kandivli of aprox 6000 sq ft for its new operation as a Head office. The company is also in the process of acquiring the required infrastructure for the proposed new activity DHWAJA FINANCE is a well-diversified financial services entity offering client’s unbiased advice on structuring a complete investment portfolio. Maintain over three decades of experience and excellence in the industry; we cultivate a customer–first attitude, ethical and transparent business practice, professionalism, research based investing and implementation of cutting edge technology. The DHWAJA Finance Group is a clearing cum trading member of various Equity and Commodity Exchanges and market segments through these entities:

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DHWAJA Finance & Securities (P) Ltd. Member: The National Stock Exchange (NSE); Member: Bombay Stock Exchange Ltd. (BSE); Cash & Derivatives Segments DHWAJA Member: Member: (NCDEX) Member: Limited Commodities (P) Ltd. Multi-Commodity Exchange (MCX) National Commodity & Derivatives Exchange National Multi-Commodity Exchange of India

Why DHWAJA? We are focused on single set of goals: YOURS. The difference in our service and other such firms is the personal touch that we lent to every transaction. At Dhwaja Finance, customers are not portfolios or ID numbers. We recognize you for the person you are and treat your association with us as a relationship. Our investment solutions, advice, and even personal dealings are tailor made for you. Our relationship with you is based on understanding your needs and objectives and collaborating with you to structure personalized financial strategies. We have made a commitment to help every kind of investors, regardless of account size, to treat each investor as our most important client. Our Vision: To be a leading wealth management service provider acting solely in the financial interest of our clients through a nationwide network of qualified professionals and business associates Our Philosophy:

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4 . ♦ Partnership: Relationships among our staff members as well as our clients are driven by the power of partnership. The power of partnership engenders involvement. Our goal is to provide the highest quality of products and services.  Towards our Business associate: The power of partnerships engenders involvement. We look to develop long term relationships with our clients built on strong ethics and trust. We encourage free exchange of ideas and demand teamwork. We are all here for one reason to serve our clients best interests. respect. contribution and mutual support.Our business is built upon three important cornerstones…Our Clients. encourage creative collaboration and providing an inspiring environment for our people Our Values: Upholding these values is the primary responsibility of leaders at every level within Dhwaja. along with value. This is precisely the relationship that we foster with our Business Associates.added advice and guidance based on clients needs. We provide a complete platform built upon the best infrastructure and technology to enable our Business Associates to efficiently service the financial needs of our investing clients. Business Associates and Employees. Our Philosophy is unique and clearly defined: Towards our Clients:  The client is the driving force behind what we do.  Towards our Employees: Our employees are what set us apart. It is leadership and accountability across our organization that we establish a common direction. respect and mutual support.

♦ Teamwork: We strive for seamless integration of services through cooperation and collaboration within and across workgroups and teams. ♦ Privacy: We respect our clients’ right to privacy and use information with appropriate discretion. BSE. ♦ Meritocracy: We invest in our employees’ development and actively strive to be the best at attracting and retaining talented people. ♦ Client focus: We aim to provide the highest quality of products and services to best serve the changing needs of clients. Our success calls for entrepreneurial spirit and initiative from each individual.. our goal is to act in ways that help us to exemplify the highest standards of personal and professional ethics in all aspects of our business.♦ Striving for excellence: While serving our clients we constantly strive for excellence to ensure that they derive complete satisfaction in their dealings with us. Product OF DHWAJA • Equity :- A corporate member of NATIONAL STOCK EXCHANGE in both Capital Market and Derivatives segments. 5 . ♦ Integrity: At Dhwaja.e. The company is also member of other premier exchange of the country i.

6 . higher returns are associated with higher risks. as an investor. shun stocks. provide advisory board services to clients in taking investment decisions in purchase and sale of shares. need to understand your risk tolerance level and certain principles of investing which can help you diversify and mitigate this risk. HNI’s and corporate besides for institutional client. etc. FEATURES of EQUITY investing with DHWAJA Growth of capital: Shares offer capital growth over the long term. stocks historically have outperformed all other long term financial assets. You. They are the only financial assets that have significantly outpaced inflation overtime. EQUITY investing with DHWAJA Why invest in Stocks? Although past performance cannot guarantee future market results.   Potentially Higher Return: Many investors worried about day-to-day market volatility.  Risk: Simply stated.We undertake buying and selling of shares for individuals. depending on the company concerned. Our research team extends advisory to clients (HNI’s and corporate in taking investment decisions in buying & selling of Shares/Stocks. But the stock market has provided considerably higher return over fixed deposits and other fixed-income investments over a period of time.

(MCX). Nickel. bonds and real estate. the investors. Steel. COMMMODITY Trading with Dhwaja Why invest/trade in commodities? Of late. COMMMODITIES offered on MCX & NCDEX  Precious Metals: Gold. At Dhwaja Finance. we help you assimilate the massive amount of information – trends in the economy. Teen  Energy: Crude oil. (NMCE) as a trading cum clearing member and in National Commodities and Derivatives Exchange of India Ltd. Commodity prices impact you in every sphere of life whether you are a producer. Silver  Other Metals: Aluminum. You can now proactively participate in the Commodity markets by investing and trading in a range of commodities. make deliberate.Benefits of Equity investing with Dhwaja The role of a full-service brokerage firm goes far beyond executing buy-and-sells transactions. The role of Dhwaja Finance is to help you. specific industries and individual companies that may affect your particular investments decisions. commodities have come to be accepted as a separate asset class with a unique and distinct source of returns in India. along with traditional avenues like stocks. trader or a consumer. Copper. (NCDEX) as a trading member. the markets. thoughtful decisions that match your personal needs with suitable investment alternatives. and also admitted in National Multi Commodities Exchange of India Ltd. In the process of the company started its activity as a main broker of Multi Commodity Exchange of India Ltd. Brent crude 7 .

YellowPeas. Turmeric. Kapas. Rubber. Agricultural Products: Chana. Castor seed. pepper. Soy seed. 8 . Crude Palm oil. RBD palmolein. Guar Gum. Sugar.. Ground Nut oil. Soya Bean. Jeera.  Investors: One who sees participation in the commodities market only as an investment opportunity to diversify the risk of his portfolio?  Arbitrageur: One who is interested in taking advantage  of any mispricing arising in the markets? Speculator: One who sees to create a trading position based on an informed opinion of the markets.. Guar seed. cashew. Maize. Expeller Mustard oil. Participate in COMMMODITIES Markets as. Mustard seed. Raw Jute. Gur. Red chilly. Refined Soya oil.  Hedger: One who wants to hedge the price risk in the commodity he is exposed to.

INB2313 72930 Exchange Trade Name Nse Capital Market INF2313 72930 INE2313 7293 INB0113 72936 INF0113 72936 INE2613 72930 MCX/TC DHWAJA SHARES & SECURITI ES PVT LTD NSE DHWAJA Future & SHARES & Option SECURITI ES PVT LTD NSE DHWAJA Currency SHARES & Derivetives SECURITI ES PVT LTD BSE DHWAJA Capital SHARES & Market SECURITI ES PVT LTD BSE Future DHWAJA & Option SHARES & SECURITI ES PVT LTD MCX Stock DHWAJA Exchange SHARES & SECURITI ES PVT LTD MCX DHWAJA Regist CERT.The membership ID's & SEBI registration numbers are as under: SEBI Broker Regn No.DT. ration No. 13729 26/03/2010 13729 26/03/2010 13729 26/03/2010 3301 26/03/2010 3301 26/03/2010 13729 26/03/2010 35780 - 9 .

Board Line : 42552700/701 Register Office: 103. Surat Branch: G-13. Khajuria Lane Opp Milap Cinema. Opp. Udhna Darwaja Ring Road.M/CORP /1549 NCDX/P M/CORP /0999 NCDX MC/TCM NMCE /CORP/0 360 COMMODI TY SERVICES PVT LTD DHWAJA 1024 COMMODI TY SERVICES PVT LTD DHWAJA CL043 COMMODI 4 TY SERVICES PVT LTD - - Contact us:Head Office : 603/Sanjar Enclave. Board Line : 10 .Surat-395001. Tel : 2862 20 91/2861 38 70. Kandivali-West.400067.Road. Laxmi villa.Empire State Building. Kandivali –(West) Mumbai. M. Mumbai-400067.G.Hanuman Temple.

Research Methodol ogy (a)Statement of Problem: It is risk return to construct and 11 .

b) Study emphasis more on fundamental and technical analysis rather than government interferences. (3) To measure risk and return of Constructed portfolio and to Revise it if it is necessary. nseindia. Bseindia.Analyses of the portfolio Under different sectors. c) Study covers only equity share of 2 month 12 . (c) Period covered: (d) Sources of data: Secondary data: Expert guide. books.com. magazine.com (e) Scope of Study: a) Study covers the scripts from different sectors. website. (b)Objective of study: (1) To construct the portfolio by Doing fundamental and price Trend analysis (2) To construct the portfolio by Considering risk and return Associated with it.

(f) Selection of Sample: Project has covered Top 20 companies under different sector.different sectors.  Closing price of index of last 1year(monthly). 13 . how to calculate . (h) Data Collection:  Annual report of selected companies for ratio analysis. Top 20 companies are selected on the basis of their market capitalization and total turnover.  Closing price of selected companies of last 1 year (monthly). It do not cover mutual fund and any other instrument under different sectors. otherwise our investment is not giving proper return and minimize risk. Method : Non probability ( Judgment Sampling) (g) Significance of Study:  There are so many risk which are associated with investment so investor have to invest money in the stock market . After analysis risk & return.  This project give idea how to select scripts for portfolio. Once the investment has been done. it is necessary to review risk & return.

Fundamental Analysis of companies f. (k)Limitation of study:  Some of scripts are selected. About capital market c. Portfolio Review. They may not give true idea. Portfolio construction &analysis.  Ratio analysis. 14 . About different sector e. About company b.(i) Tools & Techniques:  Sharp single index model for portfolio construction. Conclusion. h.  Only financial position is covered for portfolio construction. g. Research Methodology d.  Calculation of β (j) Chapter planning: a.

Introduction about 15 . Techniques which can used may not fully scientific.

The capital market includes the stock market (equity securities) and the bond market (debt).Capital Market A capital market is a market for securities (debt or equity). the money market).g.S. to Securities that and Exchange are Commission (SEC). Financial regulators. where business enterprises (companies) and governments can raise long-term funds. 16 . such as the UK's Financial Services Authority designated (FSA) or the U. as the raising of short-term funds takes place on other markets (e. among other duties. oversee the capital markets in their jurisdictions ensure investors protected against fraud.. It is defined as a market in which money is provided for periods longer than a year.

existing shareholders have the privilege to buy a specified number of new shares from the firm at a specified price within a specified time. Under a secondary market offering or seasoned equity offering of shares to raise money. In the In primary markets. a company can opt for a rights issue to raise capital. usually on a securities exchange. where shares are issued to the general public through market exchanges CAPITAL MARKET INDUSTRIA L SECURITIES GOVERNME NT 17 LONG ERMS LOAN SECURITIES MARKET . A rights issue is in contrast to an initial public offering (primary market offering). existing securities are sold and bought among investors or traders. With the issued rights. overthe-counter.Capital markets may be classified as primary markets known and as secondary markets. new stock or bond issues are sold to investors via a mechanism underwriting. secondary markets. or elsewhere. The rights issue is a special form of shelf offering or shelf registration.

) INDUSTRIAL The industrial parts complementary Issue Market. It is a market for industrial securities namely: 18 .) 2. Secondary Market. the market New consists of two and 1.PRIMARY MARKET SECONDARY MARKET The securities market can be divided in to three parts: 1.) Industrial securities market Government securities market Long term loans market SECURITIES MARKET:securities i.) 3.e.

The security to existing shareholders on a Pre – 19 . It facilitates capital formulation.(i) (ii) Equity shares or ordinary shares or common stock. Primary market is a market for New issues or New financial claims. This is the physical or tangible asset through which the market functions. The corporate sector raises their capital through these above three types of securities. borrowers exchange new financial securities for long term funds. it is called New Issue Market. In the Primary market. derives its name from the fact that it makes available a New Block of Securities for public subscription. when existing company first offered. The market. Hence. Preference shares (iii) Debenture or Bonds. Right Issue means. therefore. Companies raise ite capital in the primary market though: (i) (ii) (iii) Public Issue Right Issue Primary placement/subscription The most popular method of raising capital is sale of securities to the public by new companies is called Public Issue. Company raises it capital in the primary market though: I) Primary Market Primary market is the market for those securities which are issued first time in the market for the public.e. securities which were not previously availably and are offered to the investing public for the first time. The New Issue Market deals with new securities i.

) GOVERNMENT SECURITIES MARKET:- The government securities market (G-secs) is the largest segment of the long term debt market in India. Private placement imagine private sale of securities to small group investors. The stock exchange in India are regulated under the securities contracts (Regulation) Act. It is otherwise called Gilt-Edged securities market. accounting for nearly two-thirds of the issues in the primary market and more than four –fifths of the turnover in the secondary market.emptive bases. It is a market where Government securities are traded. Securities issued by the Central Government. II) Secondary Market Secondary market is the market for those securities which have already been available in the market and listed on a stock exchange. This market consists of all stock exchange recognized by the Government of India. The main benefit of Secondary market is securities sold and purchased continuously among investors without involvement of company. State 20 . In India there are many kinds of Government Securities-short term and long term. 1956. while company want to raise additional capital is called capital is called Right Issue. 2. Long term securities are traded in this market while short term securities are traded in the money market.

L. Semi –Government All India and authorities State level like city Corporation. primary and satellite dealers. The Government securities are in many forms. The secondary market for these securities is very narrow since most of the institutional investors tend to retain these securities until maturity. These are generally: 21 . Interest is payable half. 100. and provident funds have substantial holdings of G-secs almost one-fifth of the outstanding G-secs are held by these institutions. Port Trusts etc. Apart from banks. insurance companies. Electricity market. About one – third of the net demand and time liabilities of the banks are partly in government securities market mainly to meet statutory liquidity requirements and partly for investment purpose.Government. The role of brokers in marketing these securities is practically very limited and the major participant in this market in the “commercial banks” because they hold a very substantial portion of these securities to satisfy their S. Other investor in G-secs includes mutual funds.yearly and they carry tax exemptions also. and trusts. Improvement Trusts. Government securities are issued in denominations of RS.R. financial institutions and public sector enterprise are dealt in this Participants in the G-secs Market Banks are the largest holders of G-secs. requirements. State Boards.

Hence this market also plays a vital role in monetary management. Government securities are sold through the Public Debt Office of the RBI while Treasury Bills are sold through auctions. many industrial financing institutions have been created by the Government both at the national and regional levels to supply long term and medium term loans to 22 .(i) (ii) Stock certificates of inscribed stock Promissory Notes (iii) Carrier Bonds which can be discounted. Government securities offer a good soured of raising inexpensive finance for the Government exchequer and the interest on these securities influences the prices and yields in this market. (i) Term Loans Market In India. 3.) LONG TERM LOANS MARKET:- Development banks and commercial banks play a significant role in this market by supplying long term loans to corporate customers. Long term loans market may further be classified into: (i) (ii) Term loans market Mortgages market (iii) Financial Guarantees market.

it becomes a second charge when it is 23 . A mortgage loan is a loan against the security of immovable properly like real estate. IFCI. and other state financial corporations come under this category. They also help in identifying investment opportunities. Legal mortgage is less risky. This mortgage may be equitable mortgage or legal one. Institutions like IDBI. ICICI. When the properly in question is already mortgaged once to another creditor. The transfer of interest in a specific immovable properly to secure a loan is called mortgage. These institutions meet the growing and varied long term loans. encourage new entrepreneurs and support modernization efforts. Again it may be a first charge of title deeds to properties as security whereas in the case of a legal mortgage the title in the property is legally transferred to the lender by the borrower. the mortgages transfer his interest in the specific property to the mortgagee as security. These development banks dominate the industrial finance in India. Similarly. in the first charge. (ii) Mortgages Market The mortgage market refers to these centers which supply mortgage loan mainly to individual customers.corporate customers directly as well as indirectly.

subsequently mortgaged to somebody else. it is called a sub mortgage. the liability falls on the shoulders of the guarantor. Hence the guarantor must be known to both the borrower and the lender and he must have the means to discharge his liability. These development banks raise finance through the sale of debentures which are treated as trustee securities. (iii) Financial Guarantees Market A guarantees market is a centre where finance is provide against the guarantee of a reputed person in the financial circle. Besides. the common forms ate: 24 . Guarantee acts as a security from the creditor’s point of view. purchase of equipment etc. the Land Development Banks provides cheap mortgages loans for the development of lands. In such a case. In India residential mortgages ate the most common ones. Though there are many types of guarantees. Guarantee is a contract to discharge the liability of a third party in case of his default. The mortgagee can also further transfer his interest in the mortgaged property to another. The Housing and Urban Development Corporation and the LIC play a dominant role in financing residential projects. In case the borrower fails to repay the loan. The mortgage market may have primary market as well secondary market. The primary market consists of original extension of credit and secondary market has sales and resales of existing mortgages at prevailing prices.

Capital market is important as it plays an important role in bringing rapid industrial development in a country. On the other hand financial guarantees cover only financial contracts. advance payments. This guarantee financial service is available to both individual and corporate customers. Deferred payments for imports and exports Medium and long term loans raised abroad Loans advanced by banks and other financial institutions. C.a) b) Performance Guarantee Financial Guarantee Performance guarantees cover the payment of earnest money. The savings are invested profitably for economic 25 . non-completion of contracts etc. The financial guarantees in India relate to: A. For a smooth functioning of any financial system. Governments both central and states and other specialized guarantee institutions like ECGC (Export Credit Guarantee Corporation) and DICGO (Deposit Insurance and Credit Guarantee Corporation). development banks. this guarantee service is absolutely essential. B. the market for financial guarantees is well organized. These guarantees ate provided mainly by commercial banks. retention money. In India.

development because of the services offered by capital market. Mobilization of investable surplus and provision of expert services to investors and companies are two significant activities undertaken by the capital market.

Capital market acts as a link between those who save and those who need funds and are in a position to invest them with safety and reasonable return. It is importance due to: • It enables the investors to adopt their investment to their expectations which are constantly changing. • It acts as a link between those who save and those who are interested in investing these savings. • It provided the capital to those enterprises which can apply it profitably, productively and increase the aggregate national income. • It provides proper flow of funds and brings about the rational allocation of resources through the conversion of financial assets into physical assets. Thus, the capital market facilitates capital formation. • It provides incentives to saving and facilitates capital formation by offering suitable rate of interest as the price of capital. It serves as an important source for technological up gradation in industrial sector by utilizing the fund invested by the public.

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• It facilitated buying and selling of securities at listed price by providing continuously marketability to the investors. • The securities offered in the capital market are transferable in character. • The changing business conditions in the economy are immediately reflected on capital market. Booms and depression can be identified by capital market. So suitable monitory and fiscal policies can be taken by government. • Capital market supplies securities of different kinds with different maturity and yields in unable the investors to diversify their risk by wider portfolio of investment.

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Introduction about Different Sectors 29 .

INTRODUCTION ABOUT SECTOR A.” B. List of the sector: 30 . Meaning of sector: “There are many companies or scrip that manufacturer the same products Provide services are specified under the particular name that called sector.

• Banking • Chemicals • Infrastructure • Pharmaceutical • Fertilize • Agro Inputs • Auto Ancillaries • Auto Mobiles • Aviation • Breweries & Distilleries • Cement • Cigarettes The meaning of • Textiles • Consumer Durables • Courier & Logistic Services • Cycle & Accessories • Diversified • Dye Stuff • Engineering • Financial Institutions 31 About Banking Sector .

They can either draw on public funds from capital market by releasing the stock i.e. the function of this banking sector has grown to covering every field of wealth management process of corporate as well as individual persons. Through investment banking.e. Corporate Finance: this is the sector where investment 32 . [M&A] merger and acquisitions. Not only this. The commercial banks use this type of banking in accord with sensible and practical use of the available resources. They also provide companies with ideas on how to declare public offerings and manage their talents. The handling of mergers and acquisitions come under the corporate finance function of the investment banking. corporate finance or they can go to venture capitalists or private equities to become share holders in their company. investment banking is a kind of banking function which is used to help clients in creating wealth and funds. But in fact.investment banking is not the financial investment in the banking sector. investment banking and people engaged in this sector also provides advice on how to transact in business they are currently in. companies can create funds in two ways. The field of investment banking is also engaged in giving advice and consultation on how to manage various takeovers and merging i. The margin between investment banking and other forms of banking has been very unclear for a long time now and for the same time.

investment banking can help you by getting your company’s shares sold and raising funds for you. Let’s take an example of a company who is going strong in business and market and wish to buy another company just to add more authority to their name and business. Professionals from investment banking sector makes them realize that on merging. how an investment bank can get you money is by trading in stocks on behalf of their clients. Among other import The last decade has seen many positive developments in the Indian banking sector. have made several notable efforts to improve 33 .banking works and supports companies the most in getting extra money. They also tell them what are the other benefits of getting merged and also what is the right time according to market conditions for both the companies to get merged into each other. Here. Lets take an example that a company needs more money to finance the market research of a product tobe launched to stay forward in competition. Ministry of Finance and related government and financial sector regulatory entities. both these companies can be a great group and can acquire major part of the market and also the business. [M&A] Merger and Acquisitions: This point doesn’t have any explanation and it can be defined only through an example. The policy makers. The other way. which comprise the Reserve Bank of India (RBI).

regulation in the sector. rather than alimenting. While the onus for this change lies mainly with bank managements. growth and value creation. 34 . In this “white paper”. we emphasize the need to act both decisively and quickly to build an enabling. an enabling policy and regulatory framework will also be critical to their success. This is reflected in their market valuation. banking sector in India. India’s banking industry must strengthen itself significantly if it has to support the modern and vibrant economy which India aspires to be. A few banks have established an outstanding track record of innovation. which has harmed the longterm health of their economies. However. A weak banking structure has been unable to fuel continued growth. growth and value creation in the sector remain limited to a small part of it. The cost of banking intermediation in India is higher and bank penetration is far lower than in other markets. The sector now compares favorably with banking sectors in the region on metrics like growth. The failure to respond to changing market realities has stunted the development of the financial sector in many developing countries. innovation. improved regulations. profitability and non performing assets (NPAs).

the latent demand for credit (both from the food and non food segments) and structural reforms have paved the way for a change in the dynamics of the sector itself. While the likes of SBI have made already attempts towards consolidation. others are keen to take off in that direction. the sector is also looking forward to consolidation and investments on the FDI front. the global banking sector has been witness to some of the largest and best known names succumb to multi-billion dollar write-offs and face near bankruptcy.Influenced by the global financial turmoil and repercussion of the subprime crisis. Having said that. on the liabilities side. Incremental provisioning made for asset slippages have safeguarded the banks from witnessing a sudden impact on their bottom lines. with better penetration in the semi urban and rural areas the banks garnered a higher proportion of low cost deposits 35 . Public sector banks have been very proactive in their restructuring initiatives be it in technology implementation or pruning their loss assets. However. the Indian banking sector has been well shielded by the central bank and has managed to sail through most of the crisis with relative ease. the investment cycle has also been wavering. Besides gearing up for the compliance with Basel II accord. However. Retail lending (especially mortgage financing) that formed a significant portion of the portfolio for most banks in the last two years lost some weight age on the banks' portfolios due to their risk weight age. Further with the economic buoyancy the world over showing signs of cooling off.

telephone banking.thereby economizing on the cost of funds. About Chemical Sector Understanding the expectations of stakeholders and then responding appropriately is crucial to the industry’s ability to do business. Only by earning the trust and respect of stakeholders will the industry maintain their “license to 36 . mutual funds and insurance policies to augment their fee based income. banks also resorted to cross selling of financial products such as credit cards. Apart from streamlining their processes through technology initiatives such as ATMs. online banking and web based products.

Survey Approach The approach as provided by Sustain Ability was first to identify the stakeholders and then categories them across groups/ segments and undertake the interviews. And most importantly. The essence of the interview was to understand views of the stakeholders: • On the Indian chemical sector • Industry’s response to address these issues. • Prescriptions to make the industry sustainable and on • The WBCSD project – its necessity & focus The survey was distributed and administered as follows: 45 stakeholders were initially identified based on • 37 . UK approached TERI to execute a survey to understand whether in India sustainable development imperatives are driving change in the chemical industry and shaping the perceptions of the industry’s stakeholders. to explore what stakeholders believe a WBCSD project should cover for the realization of a sustainable chemical industry in India.operate” in communities across the world. Sustainability.

in specific.previous experience and existing database. 38 . which was a major constraint. Responses and Limitations:Representatives of 19 stakeholders responded to the survey in a limited time frame of one and a half months. As with many surveys of this nature stakeholders that see them as leaders or early movers are more likely to respond. Therefore the survey likely includes the attitudes and approaches of some of the most active stakeholders in this area. • The stakeholder dialogue saw 20 participants deliberating on the subject. • The target list was narrowed to 28 preferred targets based on subsequent screening. • 19 responses were received (interview + email) – Annexure 01 • A Stakeholder dialogue was organised to share the survey findings and discuss the future of the Indian chemical industry in general and the ideal characteristics of a potential WBCSD project on sustainable chemical sector.

5% per resulting rapidly increasing infrastructure spending.While every effort was made to reach a diverse sample group the findings presented here may not be representative of all the stakeholders operating within the chemical sector in India. Given the limited time frame. Total infrastructure spending is expected to increase from US$ 24 billion in 2005 to US$ 47 billion in 39 . consolidated and About Infrastructure Sector Over annum the past four in years. the Indian Economy consistently recorded growth rates in excess of 8. TERI has analyzed.

either from domestic sources or foreign avenues. stimulating and mobilizing With the objective of private sector increased investments. the government has offered various incentives: 40 . billion (FICCI)Total investment requirement in the infrastructure sector over the next five years is US$ 445 It is estimated that the Infrastructure Sector needs to grow at a CAGR of 15% over the next five years to support the growing requirements of virtually every other sector of the Indian Economy.2009.

a ten year tax holiday is available to enterprises engaged in the business of development. • Introduction of Public Private Partnerships Based on resounding global success. FDI under the automatic route is permitted up to 49% 100% for various services in the aviation sector. 1961. to combine the best practices of public and private sectors to efficiently develop and maintain infrastructure facilities. operation and 41 . the government has introduced the concept of public-private partnershipsin India. • Extended tax holiday periods Under section 80-IA of the Income Tax Act. Barring aviation. operation and maintenance of infrastructure facilities.• Liberalization of FDI Regulations i. PPPs are aimed at inducing private sector participation in activities which might otherwise prove to be cost prohibitive e. 100% FDI under the automatic route is now permitted in all infrastructure sectors. subject to compliance with the conditions prescribed therein. ii. development.g.

Private sector participation through PPPs is being actively in encouraged to achieve operation greater and efficiencies maintenance. • • Roads • India has one of the largest road networks in the world.maintenance of toll roads. The Government has indicated that the Indian infrastructure sector has the potential to absorb US$ 150 billion (including the power sector) in FDI over the next five years.34 million kilometers. • 42 . (Economic Survey 2007-08) • The Government has laid down ambitious plans for development and up gradation of the domestic road network. The Industry has received an aggregate of US$ 6.6 billion in infrastructure investments over the past six years. aggregating to approximately 3. It is estimated that the total investment requirement for development and up gradation of the country’s development.

road network over the next five years is approximately US$ 55 billion. (Economic Survey 2007-08) About Pharmaceuticals Sector The Indian Pharmaceutical Industry is capable to meet the country's demand for every drug. The drug production sector is equipped with technology and researched knowledge base. The manufacturing units within the country are meeting about 80% of the country's drug requirements. The industry produces drugs worth rupees 18000 cores and is growing at 9 per cent every year. It offers quality products 43 .

The country has an open market policy where foreign capital investment is permitted.000 production units in India with products sold at competitive lower prices than international drug prices. Low cost of research over the Western countries gives India a potential advantage for future developments. It has a large pool of educated manpower with technical and managerial skills It has a well-developed research and development base equipped with advanced technology. India has various competitive advantages in Pharma production over western world. the country has a strong legal framework. In this section Naukri hub researches in to the prospects of Indian Pharmaceutical industry in detail. an essential for pharmaceutical industry. The most promising fact about India is a 70 million middle class population with good consumption power. Accounting for two percent of the world's pharmaceutical market. the Indian pharmaceutical sector has an estimated market value of about US $8 billion. It's at 4th rank in terms of total pharmaceutical production and 13th in terms of 44 .with internationally accepted quality standards. Restriction on capital investment has been removed in the recent years with a view to make new investments profitable. Also. There are about 20.

2 % and is expected to grow to US $ 12 billion by 2010. GlaxoSmithKline is among the top choices for 45 . a large number of Indian pharmaceuticals companies are looking for tie-ups with foreign firms for inlicense drugs. According to an estimate.value. At present. 3900 new generic products have been launched in the past two years. As in the present scenario. With the Product Patent Act. this industry is able to attract big MNCs to India. which have increased price sensitivity in the pharmaceutical market. These have been by and large launched by big brands in the Pharma sector. only a few people can afford costly drugs. Now the companies are trying to capture the market by introducing high quality and low price medicines and drugs. Earlier these big firms had apprehensions in launching new drugs in the Indian market. It is growing at an average rate of 7. which came into action in January 2005. And in the year 2005 Indian pharmaceutical companies captured around 70% of the domestic market. Over the last two years the pharmaceutical market value has increased to about US $ 355 million because of the launch of new products.

Cipla. 46 . whereas contract research is estimated to reach US$6-10 billion. •Cost Effective: The filing cost of ANDAS and DMFs is comparatively low for the Indian companies. etc have created awareness about the Indian market prospects in the international pharmaceutical market. Industry Strengths: •Capital Investment in Technology: Owing to the availability of advanced technology at low costs. but do not have any branch over here. the companies can produce drugs at lower costs. Contract research and pharmaceutical outsourcing are the new avenues in the pharmaceutical market. Contract manufacturing is growing at a very fast pace and is estimated to grow to US $30billion.Reddy's Lab. the changes that took place in the patent law. have helped in reducing the risk of loss for intellectual property.the firms that wish to launch their product in India. change of process patent to product patent. Approvals given by Foods and Drugs Administration (FDA) and ANDA (Abbreviated New Drug Application)/DMF (Drug Master File) have played an important role in making India a cost-effective and high quality product manufacturer. Indian multinational companies like Dr. Furthermore. Ranbaxy.

Presently fertilizer contributes about50% to the total increase in food grain production. in segment the has received making it huge more process competitive and efficient. 47 . Fertilizer consumption and food grain production is closely correlated (Table 1). the generic drugmanufacturing investments. About Fertilizer Sector Fertilizer is key input in enhancing crop production. •Infrastructure: There is a well-developed infrastructure for the pharmaceutical industry.•Manpower: There is a large pool of technical experts available at modest salaries. •Generic Drugs: In the last few years. •Contract Research & Contract Manufacturing: There is a good scope for contract research and contract manufacturing.

3 12.Domesticproduction of nitrogenous fertilizers was 10.942 million tons in 2000-2001. which 48 . All India Fertilizer Consumption and Food grain Production (Million tons) year 1951-52 1961-62 1971-72 1981-82 1991-92 20002001 Fertilizer Consumption (N+P205+K20) Food grain Production 0.5billionpeople by 2040. Thus.71 2.757 million tons of N and 5.99 0.34 82.056 million tons of P2O5 in year 2000-2001.734million tons (Table 2).07 133.17 6. additional 150 million tons of food grain production has to be achieved to feed almost 1. At the present level of nutrition.Increasing pressure of population and hiking land resources demand for vertical expansion of agriculture where the role of fertilizers will further increase.07 Production of Fertilizers India has become third largest country with a total capacity of 11.63 196. which will rise due to depleting grasslands.05 51.37 16. Table -1.73 168. This estimate does not include demand for animal feed.66 105. the crusade of higher production of food grain has to continue with increased vigor using fertilizers along with the other sources of plant nutrients. whereas production of phosphatic fertilizers was 3.

which achieved phenomenal growth in eighties. Growth in Fertilizer Industry Fertilizer production is capital intensive and presently the cost of production of indigenous material is high and returns on investment are low. Production of DAP during 2000-01 was 10 % higher compared to previous year (Table 3). Due to sufficient 49 . In the recent past. There have been virtually no imports of urea during 200001.are marginally high. India is presently self sufficient in respect of urea and DAP. except some quantity vocative consumption. Imports of urea have declined substantially during the past five years (Table 4). Imports of Fertilizers The gap between demand and domestic supply is met through imports. However. All India capacity utilization has gradually improved over the years and was maintained at almost cent per cent level. the fertilizer industry has not attracted any significant investment. The entire quantity of potashis imported. during2000-01 restrictions were imposed on capacity utilization for Urea at 92% as a consequence the production of urea declined. witnessed decline in the growth rate during the nineties. The Indian fertilizer industry. compared to last years production. mostly as MOP. The increase in production of total N is observed due to increase in production of DAP and other complexes which also have 'N'.

There has been some new capacity addition for NP/NPK complexes by way of importing rock phosphate and converting it to pose acid and then to DAP/NPK or production of pose acid at rock Phos phatemines abroad in JV and importing phosphoric acid for further conversion to DAP/NPK. some more JV projects are under negotiation. 50 . due to abundant availability of gas. As India does not have significant high-grade rock phosphate reserve. from this project on long term basis.indigenous capacity and low international prices of urea the Government of India in Feb. The financial closure is expected by October 2001 and the commercial production will begin 36 months After that. Even if the Government reviews its decision. Lack of availability of natural gas in the country has prompted investors to collaborate for joint ventures abroad for urea production. 2000 decided that no new grassroots projects will be allowed during the next three years. Apart from thee existing joint venture plants for phosphoric acidic Senegal. the earliest a project could start would be by 2004-05. Government is keen on implementation of Indo-Oman Fertilizer Project. Gulf countries.65 million tons per annum of urea. are becoming the first choice for joint ventures. nearness to Indian shores and investment friendly environment. Jordan and Morocco. it is mainly dependent on import of either rock phosphate or pose acid or DAP. Most of the capacity of DAP is based on imported phos acid and ammonia. India will purchase the entire production of 1.

51 .

48 22.3 Gross Profit Margi n (GPM ) 21.29 1 2 3 4 CIPLA LTD J.6 55.54 21.68 54.74 Net Profit Margi n (NPM) 14.73 17.98 8.86 20.5 72.59 21.51 73.43 11.32 20.44 14.Fundamental of Companies Portfolio construction have selected following companies from different sectors which are fundamentally sound.47 11.2 104.59 48.1 2 2 1 5 52 .B. No company's Name Price Earning Ratio (P/E ratio) 22.CHEMICALS & PHARMACEUTICAL S LTD SUN PHARMACEUTICAL INDUSTRIES LTD TORRENT PHARMACEUTICAL LTD 13.05 44.95 Earnin g Per Share (EPS) Book Value (BV) Face Value (FV) Oper ating profit Margi n (OP M) 20.09 42.63 47.

48 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 5.11 49.06 27.27 65.9 4 13.74 8.74 11.77 17.35 2.7 5.28 6.73 16.99 34.3 74.05 9.78 15.51 2.5 246.57 274.33 3.5 19.97 4.15 6.05 17.19 23.66 10 10 10 10 10 10 5 10 10 10 2 10 2 2 10 10 10 10 10 13.1 7.29 11.62 26.5 563.82 21.43 18.18 9.87 8.88 19.1 32.91 3.54 8.3 3.7 17.4 90.2 28.4 5.47 8.5 107.6 9.94 13.5 87.49 10.6 5.88 64.8 182.2 109.14 12.14 12.1 9 26.1 19.03 402.9 52.75 0.54 4.79 463.2 11.24 4.4 207.11 7.07 1.57 18.34 36.76 14.59 11330 23.0 5 56.82 6.28 8.6 183.6 57.68 17.54 8.24 4032 7.42 13.5 133.96 7.71 4.27 56.04 7.97 66.24 5.6 8 32.0 7 13.6 19.98 12.61 5.36 31.13 16.17 5.28 12.06 11.54 9.67 13.66 20.64 59.03 10.37 26.06 44.5 6 JUPITER BIOSCIENCE LTD GUJARAT NARMADA VALLEY FERTILIZERS COMPANY BHARAT FERTILIZER INDUSRIES LTD MANGLORE CHEMICALS & FERTILIZERS LTD TATA CHEMICALS LTD SPICE ISLANDS APPARELS LTD ALFA LAVAL INDIA LTD GEI INDUSTRIES SYSTEMS LTD KULKARNI POWER & TOOLS LTD SARASWATI INDUSTRIES SYNDICATE LTD YUKEN INDIA LTD C&C CONSTRUCTIONS LTD DLF LTD EXELON INFRASTRUCTURE LTD CONSOLIDATED CONSTRUCTION CONSORTIUM PUNJ LLOYD LTD STATE BANK OF INDIA FEDERAL BANK LTD CORPORATION BANK ING VYSYA BANK LTD HDFC BANK LTD 11.1 75.42 8.27 2.6 1038.06 12.9 1 14.1 12.95 19.41 1.51 13.42 5.8 10 10 50.26 1.6 10.95 13.21 5.68 18.16 18.11 53 .59 18.

54 .

3 315.63032 55 .45292 -0.Portfolio Construction & Analysis Calculation of CIPLA LTD • Calculation of Ri Month Jan Feb CLOSING PRICE 317.3 Return -5.

55 318.65 352.032636 9.6 303.77408 0.75 326.616731 -6.55842643 -0.7432535 10.16517 0.68146 0.3376 0.4652819 34.23111 19.437646 6.25 343.945658 XY 34.513446 -2.301258 X -6.894269 56 .95 337.30752755 -3.7343376 0.27585628 46.92001 0.8983064 Y2 40.8040888 2.9 6.6303183 6.894341 -3.684419 0.17652 -3.1188 6.21640786 0.1 342.981173 • Calculation of β Month y Jan Feb Mar Apr May Jun Jul -5.91405 1.622927 11.285385338 24.8943408 -3.35 321.77408 12 0.7 369.88951 5.889505 5.4529201 -0.30126 -7.4973 4.463184 0.981173 Ri = Ri = Ri = Summation of Return 12 11.6138188 47.09466654 26.6167309 -6.39730116 47.42725 7.Mar Apr May Jun Jul Aug Sep Oct Nov Dec summation Average return 337.031159 12.121861321 x2 29.9140501 1.191534 44.

5134463 -2.331188 136.4183549 415.Aug Sep Oct Nov Dec -7.118799 6.3926923 90.18327 -2.43) β = 0.57454143 50.77) (12)(415.774076 17.060332 -4.842394 • Calculation of ∞ ∞ = ȳ.232627 286.033588 6.289 0.0326356 9.575489 11.6773106 36.109016 0.981173 1.427253 7.44)(11.192700144 38.743529303 6.622927 0.60696 Total ȳ 11.4540) ∞ = -0.2436 57 .8423)(1.096790978 70.55132 5.41)-(17.454004 β = (12)(237.89155907 58.509234 25.βx̄ = (0.23)-( 304.44804 237.8847 0.42673746 -1.9811) – (0.67429 -0.5056605 5.

00918 0.4973 -4.509.971.680655 16.527.9513 4.4542 2.700.8423)(237.575489 -0.71 16.51537 9.2436)(11.684419 5.771789 104.77).0056 -6.35725 1.27748 -3.04266 13.29 17.069.18327 -1.032983 27.944.00533 5.868.945658 -0.12 20.230415 0.3376 -7.09 Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec (x-x̄) (x-x̄)2 60.(0.258415 0.41) 12 ei2 =18.34 19.463184 3.87852 11.96 16.032.429.1751 • Calculation of σ2i Sensex Return 16.631965 24.521.• Calculation of ei2 ei2 = = (286.88)-(-0.50835 0.90 17.606328 58 .55 17.67429 10.060332 3.25 20.558.70911 1.437646 -1.357.55132 -4.63727 -2.77 17.79161 0.055165 0.63 17.01636 6.22028 -0.17652 -1.12 20.

175 105.Summation Average return 17.44805 1.602 ei2 18. ei2 . β .2436 7 6.21 α 0.454004 261.5151 σ2i = ∑(x-x̄)2 n σ2i = 261.CHEMICALS & PHARMACEUTICALS LTD Ri 0.842 0.5151 12 σ2i =21.85 β 0.9742 71 59 .B.7929 Calculation of Ri.982 7. 1 2 CIPLA LTD J.α of different companies :N COMPANY O.

BHARAT FERTILIZER INDUSRIES LTD MANGLORE CHEMICALS & FERTILIZERS LTD TATA CHEMICALS LTD SPICE ISLANDS APPARELS LTD ALFA LAVAL INDIA LTD GEI INDUSTRIES SYSTEMS LTD KULKARNI POWER & TOOLS LTD SARASWATI INDUSTRIES SYNDICATE LTD YUKEN INDIA LTD C&C CONSTRUCTIONS LTD DLF LTD EXELON INFRASTRUCTURE LTD 3.19 8.259 -0.381 35.532 0.93 1 63.764 1.814 0.68 1.949 0.5711 31 7.255 2.268 0.239 56.142 -0.99 30.30 1.6409 4 2.68 0.72 102.564 -0.833 -0.818 111.4177 6 3.494 32.154 0.7523 88 2.8270 8 4.266 -0.78 26.4613 5 0.484 0.962 1.3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 SUN PHARMACEUTICAL INDUSTRIES LTD TORRENT PHARMACEUTICAL LTD JUPITER BIOSCIENCE LTD GUJARAT NARMADA VALLEY FERTILIZERS CO.75 39.3019 5 1.238 0.777 299.053 3.736 1.3632 5 6.023 6.323 8.611 337.835 680.099 -1.746 3.31 -1.2354 4 60 .034 0.6727 6 3.6315 36 0.63 52.04 5.1382 94 2.515 -2.8978 9 7.402 180.3666 65 0.522 9.480 60.43 113.8126 75 7.472 1.29 0.0284 32 0.

069 96.0550 85 (A) Ranking the securities 61 .259 0.095 4.255 2.5514 55 3.965 0.48 2.166 32.190 39.4178 7 7.239 58.6884 17 0.369 2.071 57.643 21.776 1.92 3.2959 3 2.19 20 21 22 23 24 25 CONSOLIDATED CONSTRUCTION CONSORTIUM PUNJ LLOYD LTD STATE BANK OF INDIA FEDERAL BANK LTD CORPORATION BANK ING VYSYA BANK LTD HDFC BANK LTD -1.817 2.01 2.172 1.426 69.006 0.72 -4.6326 04 5.4335 9 0.358 1.

099 -1.55 10.814 0.85 Ri/ β β 1.165 13.381 34.746 3.484 -0.266 13.472 1.259 -0.034 -45.432 0.764 1.564 2.N O COMPANY Ri 0.01 -1.602 3.7 5 24 2.238 0.307 0.03 9.689 1.842 0.83 -11.584 12 10 16 7 23 18 1 21 19 17 -0.833 -0.515 -2.71 -0.522 0.194 8.154 -7.B.201 62 -1.736 1.949 3.142 -0.03 Ra nk 15 4 1 CIPLA LTD 2 J.905 0.023 6.401 0.053 0.120 2.683 5.323 8.532 10.CHEMICALS & PHARMACEUTIC ALS LTD 3 SUN PHARMACEUTIC AL INDUSTRIES LTD 4 TORRENT PHARMACEUTIC AL LTD 5 JUPITER BIOSCIENCE LTD 6 GUJARAT NARMADA VALLEY FERTILIZERS COMPANY 7 BHARAT FERTILIZER INDUSRIES LTD 8 MANGLORE CHEMICALS & FERTILIZERS LTD 9 TATA CHEMICALS LTD 10 SPICE ISLANDS APPARELS LTD 11 ALFA LAVAL INDIA LTD 12 GEI INDUSTRIES SYSTEMS LTD 13 KULKARNI POWER & TOOLS LTD 14 SARASWATI INDUSTRIES SYNDICATE LTD 15 YUKEN INDIA LTD 16 C & C CONSTRUCTION S LTD 17 DLF LTD 18 EXELON 0.255 0.215 9 3.962 1.289 0.73 0.982 7.10 3 6 25 -0.68 .04 5.268 0.

0103 09 0.0034 45 0.79640 0.B.000498 0.50613 0.073627 0.9051 (Ri-Rf)*β ei2 0.180635 0.3294 Cumulative (b) 0.836 19 10.105099 0.80503 0.92397 63 .CHEMICALS & PHARMACEUTICA LS LTD BHARAT FERTILIZER INDUSRIES LTD JUPITER BIOSCIENCE LTD GEI INDUSTRIES SYSTEMS LTD CORPORATION BANK SUN PHARMACEUTICA L INDUSTRIES LTD SPICE ISLANDS (Ri-Rf) β 34.36537 0.9180 5 3.0135 2 0.01694 8 0.01498 7 0.030168 0.106 3 5.028705 0.0097 Cumulative (a) 0.3413026 0.037 0 10.0254 04 0.197085 0.016948 0.016 37 19.0006 33 0.04492 0.0006 9 0.556 88 13.89381 0.87004 0.Where.07553 5 0.05070 1 0.5843 13 4.313035 c 0.00640 3 0.115145 0. Calculation of Cut off Rate Ra nk 1 2 3 4 5 6 7 8 9 Securities YUKEN INDIA LTD FEDERAL BANK LTD TORRENT PHARMACEUTICA L LTD J.231336 0.02506 8 0.60536 0.91798 10 0.02826 βi2/ei2 0.247786 0.08169 8 0.2159 25 2. σ²I * ∑ (Ri-Rf)*β C= ei² 1+ σ²I ∑ βi² ei² Ri – Rf β is selected.098696 0.12154 0.01321 9 0.090077 0.357752 0.025 13 13.0023 13 0.75369 0.013718 0.045155 0.0004 98 0.0011 05 0.

594267 0.40102 0.413090 0.05390 0.387343 0.0635 87 0.94978 0.1654 79 0.6986 3 1.95552 0.1202 57 2.5823 7 7.02513 Zi 0.0041 52 0.0390 44 0.7384 1.503056 0.049 64 .0071 87 0.0258 77 0.384570 0.684433 0.95969 0.16513 0 0.06852 5 0.95959 0.0927 98 0.0972 13 0.350861 0.682720 0.4329 4 11.00337 7 0.04550 5 0.95978 0.7102 4 3.239 RiRf/β 34.00500 7 0.0003 73 0.556810 0.94637 0.700883 0.519506 0.702548 0.686098 0.0027 56 2.00277 3 0.429540 0.00129 3 30 0.03730 3 0.03241 5 0.694162 0.4009 5 -0.00166 5 0.9246 39 1.16175 0.64865 0.467227 0.95931 0.610717 0.03794 0 0.95401 0.APPARELS LTD 11 12 13 14 15 16 17 18 19 20 21 22 HDFC BANK LTD TATA CHEMICALS LTD STATE BANK OF INDIA ING VYSYA BANK LTD CIPLA LTD ALFA LAVAL INDIA LTD EXELON INFRASTRUCTUR E LTD SARASWATI INDUSTRIES SYNDICATE LTD DLF LTD PUNJ LLOYD LTD C&C CONSTRUCTIONS LTD CONSOLIDATED CONSTRUCTION CONSORTIUM LTD KULKARNI POWER & TOOLS LTD MANGLORE CHEMICALS & FERTILIZERS LTD GUJARAT NARMADA VALLEY FERTILIZERS COMPANY 00 2.677712 0.92580 (C)Arrival of Portfolio Calculation of Ra nk Zi β 0.93161 0.368604 0.352155 0.632207 0.2381 0.78 57 96.94073 0.615908 0.0220 36 0.2010 94 0.8720 7E 0.93205 23 24 25 0.632358 0.540360 0.0831 42 1.699170 0.5437 93 2.6839 76 0.92604 0.0167 97 0.0197 12 0.0175 93 0.450777 0.02574 6 0.93586 0.01637 97 19.367311 0.03768 7 0.069 0.032 5 7 0.403793 0.759 7 45.95658 0.2586 Securities 1 YUKEN INDIA LTD 2 FEDERAL BANK LTD ei² 113.0073 21 0.

93 05 58.5644 0.016 0.72 76 111.7761 0.8424 60.175 2 53 13.75 84 180.369 8 52.10635 1 5.426 1 35.06 0.01 0.086 0.9494 1.03703 7 10.8135 1.9621 1.03 0.818 4 105.027 0.5 3 TORRENT PHARMACEUTICAL LTD 4 J.2593 0.1717 0.6021 0.01 Calculation of Zi YUKEN INDIA LTD 65 .022 0.99 29 21.21 02 299.B.543793 43 2.643 6 18.165479 58 0.918051 8 3.069 5 69.83619 55 10.053 0.CHEMICALS & PHARMACEUTICALS LTD 5 BHARAT FERTILIZER INDUSRIES LTD 6 JUPITER BIOSCIENCE LTD 7 GEI INDUSTRIES SYSTEMS LTD 8 CORPORATION BANK 9 SUN PHARMACEUTICAL INDUSTRIES LTD 10 SPICE ISLANDS APPARELS LTD 11 HDFC BANK LTD 12 TATA CHEMICALS LTD 13 STATE BANK OF INDIA 14 ING VYSYA BANK LTD 15 CIPLA LTD 0.069 0.083142 72 1.021 0.584313 47 4.0055 1.215925 85 2.480 7 337.1657 0.924639 41 1.054 0.8327 -0.2661 1.905100 63 2.04 0.611 3 39.55688 39 13.120257 77 2.

2586 19.78 Zi = 0.i Βi ei² Ri –Rf β * Zi = 0.069172894 Calculation of Zi FEDERL BANK LTD Zi = 0.2381 34.01 – 0.9593 113.025-0.23 Zi = 0.048543686 66 .9593 96.

Calculation of Rank Xi Zi 0.5 8.B.04 0.053 0.04 3.55 9 SUN PHARMACEUTICAL INDUSTRIES LTD 10 SPICE ISLANDS APPARELS LTD 11 HDFC BANK LTD 12 TATA CHEMICALS LTD 13 STATE BANK OF INDIA 14 ING VYSYA BANK LTD 15 CIPLA LTD 67 .069 0.01 Securities 1 YUKEN INDIA LTD 2 FEDERAL BANK LTD 3 TORRENT PHARMACEUTICAL LTD 4 J.63 1.06 0.03 0.01 0.069 0.022 0.45 4.81 1.027 0.89 8.54 9.73 11.016 0.CHEMICALS & PHARMACEUTICALS LTD 5 BHARAT FERTILIZER INDUSRIES LTD 6 JUPITER BIOSCIENCE LTD 7 GEI INDUSTRIES SYSTEMS LTD 8 CORPORATION BANK Xi 11.23 7.81 6.086 0.7 14.23 4.054 0.46 3.049 0.7 2.021 0.

Calculation of Zi i xi YUKEN INDIA LTD ∑Zi 0.615542859 Xi = 7.2377 % Calculation of xi FEDERL BANK LTD xi = 0.8863 % 68 .048543686 0.069172894 0.615542859 xi = Xi = 11.

Conclusion 69 .

DLF LTD. PUNJ LLOYD LTD. while C&C CONSRUCTION. K 70 . TATA CHEMICAL.Conclusion This whole project is concern with the construction of portfolio and by doing this project we come to know about how to construct the effective portfolio which comprise the maximum return for the investors and minimize their risks In the portfolio construction we have prepare portfolio according to the sharp model and by constructing a portfolio we have selected such scrip’s from list of many scrip’s and specially we have consider such factor like β. Also after preparing the portfolio we have specially analyzing the selected scrip’s and measuring the actual performance of the scrip’s so if require any changes then we can change the portfolio and revised it. and ei 2 through which we know risk factors and return factors of the project and base on that we come to know about the effectiveness of the portfolio. CIPLA LTD. EXELON INFRASTRUCTURE LTD Have given negative return in all the three months. α. SBI BANK.

we have to also see the performance of selected securities. according to market return. Infrastructure sectors not given proper result in this year so in future suggestion to not invest in Infrastructure sectors. Some Companies give return not 71 . Fertilizer and chemical.Has give negative return in Jan. Sharp model gives idea how to select securities for optimal portfolio. and Feb. but they give positive return in march.. pharmaceutical sector so those who want to invest their money into this sector for that this is very helpful study. It sector has given negative return in this year. we construct & analyze Portfolio of five Sectors but that’s not enough. And especially this project gives you detailed idea about the Banking. Here.

Bibliography 72 .

Bibliography  Magazine : Capital Market  Web-sites : www. 73 .bseindia.K.moneycontrol.Bhadla. V.com money. Gangadharn.com www.com www.com  Books : Investment Management.rediff.nseindia.