EQUITY INVESTMENT & ECNOMIC GROWTH IN INDIA (2000-2008) AND MARKETING STRATEGIES OF RELIGARE

Under the Supervisor: Mr. Amandeep Shaney (AVP) RELIGARE SECURITIES Presented by: Internal Guide: Mary Jacintha
(Lecturer)

CDAC Noida Chandan Parsad
MBA (SEM)
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Objective &

Scope of Work Introduction Religare Securities Limited Organization Chart Equity share introduction Introduction Indian Equity Industry Introduction of the Company Analysis Conclusion Effect of Economic growth on Share Market Marketing Strategies of Religare Suggestions

Objective: The main objective of the project is to analysis the importance of equity investment in the process of economic development in India what is the effect of economy development and analysis the which stock is good for investment. Scope of Work Equity investment in Nifty50 Index during January09 to june09 Company 1.SBI 2.Reliance Industry Ltd 3.Larsen & Tourbo Ltd 4.Tata Steel 5.Infosys Technology Ltd 6.Mahindra Satyam Computer Effect of Economy Growth on share Market Marketing STRATEGIES of Religare
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Religare Securities Limited (RSL), a 100% subsidiary of Religare Enterprises Limited is a leading equity and securities firm in India.
1.

RSL is a member of the National Stock Exchange of India, Bombay Stock Exchange of India, Depository Participant with National Securities Depository Limited and Central Depository Services (I) Limited, and is a SEBI approved Portfolio Manager. Religare has a very credible Research and Analysis division, which not only caters to the need of our Institutional clientele, but also gives their valuable inputs to investment dealers. Pan India footprint Near to your home/office Religare is present in all over India 1800 locations across more than 460 towns & cities The Company has posted a net profit of Rs 31.646 million in Q1 2009.

2.

3. 4. 5. 6.

Vision - To build Religare as a globally trusted brand in the financial services domain and present it as the µInvestment Gateway of India'. y Mission - Providing complete financial care driven by the core values of diligence and transparency. y Brand Essence - Core brand essence is Diligence and Religare is driven by ethical and dynamic processes for wealth creation. y Awards won by Religare Asset Management
y

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TOP MANAGEMENT
Mr. Sunil Godhwani CEO & Managing Director, Religare Enterprises Limited y Mr. Shachindra Nath Group Chief Operating Officer, Religare Enterprises Limited y Mr. Anil Saxena Group Chief Finance Officer, Religare Enterprises Limited
y
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ORGANIZATION CHART

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1. Equity Shares: An instrument for raising capital for the companies 
 

A shareholder is entitled to an equal distribution in any profits, if any are decided in the form of dividends. Shares are often used to refer to the stock of ownership right. Shares also represent ownership of other classes of financial assets, such as mutual funds.

Types of shares 1. Ordinary/common shares 2. Preference shares

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Investors: Buyers of Equity Share

Investors are those who have excess funds with them and want to employ it for returns in future. Individuals, Association of Persons, Companies, Mutual funds, Financial Institutions Foreign Institutional Investors. Major categories of investors
y

Institutional Investor: A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. Retail Investor: Individual investors who buy and sell securities for their personal account, and not for another company or organization. Also known as an "individual investor" or "small investor". Retail investors buy in much smaller quantities than larger institutional investors. Qualified Institutional Buyer ± QIB: Primarily referring to institutions that manage at least 10 crores in securities including banks, savings and loans institutions, insurance companies, investment companies, employee benefit plans, or an entity owned entirely by qualified investors.
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y

y

Benefits from Equity Shares 

There are income tax advantages generally available to corporations that invest in preferred stocks. One big advantage to its issuer is that it is an instrument to raise the capital of company. This allows financial institutions to satisfy regulatory requirements without diluting common shareholders. Said another way, through preferred stock, financial institutions are able to put on leverage while getting equity credit. An "individual investor" or "small investor" gets benefited by getting interest or dividends. 

  

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Indian Equity Industry
y y y

y

The equity industry in India is more than 19 years old. The first venture capital fund, TDICI Ltd. (now known as ICICI), was established in 1988 In India today, many funds that have been set up in the last 9 years are focused on information technology (IT). In 2008, funds broadened their interest to a range of sectors including manufacturing, health care, banking and financial services, pharmaceuticals, engineering, textiles, and telecommunications technology While many investors have allocated more to equity as an alternative asset class, equity is still underinvested because not enough fund managers have the experience and financial backing needed to ensure sustainable operations. As a result, the equity Investment rate in India is still well below the levels in the Republic of Korea and Singapore

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State Bank of India
y

y y y y y

The evolution of State Bank of India can be traced back to the first decade of the 19th century. It began with the establishment of the Bank of Calcutta in Calcutta, on 2 June 1806 The corporate center of SBI is located in Mumbai. SBI has about 10000+ branches India largest PSU bank Net profit 9,121.24 Cr in 2008-09 SBI provides easy access to money to its customers through more than 8500 ATMs in India.
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Reliance Group
y

y y

y y y y

The Reliance Group, founded by Dhirubhai H. Ambani (19322002), is India's largest private sector enterprise, with businesses in the energy and materials value chain Reliance Industries Limited, is a Fortune Global 500 company and is the largest private sector company in India. The Company now has operations that span from the exploration and production of oil and gas to the manufacture of petroleum products, polyester products. The world's largest producer of Polyester Fibre and Yarn 4th largest producer of Paraxylene (PX) and Purified Terepthalic Acid (PTA) 6th largest producer of Mono Ethylene Glycol (MEG) 7th largest producer of Polypropylene (PP)
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Larsen & Toubro Limited (L&T)
Larsen & Toubro Limited (L&T) is a technology, engineering, construction and manufacturing company. It is one of the largest and most respected companies in India's private sector. y Larsen & Toubro Limited is a Forbes Asia Fabulous 50 company.
y

y
y y y y y y y y

Record of achievements
India's first indigenous hydro cracker reactor Oil and gas platform projects executed to global benchmarks The world's largest continuous catalyst regeneration reactor Asia's highest viaduct - built for the Konkan Railway The world's longest product splitter The world's longest LPG pipeline Building an international class football stadium in 260 days India's first indigenous Hydrocracker Reactor

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Tata Steel
y y y

y y

y

Tata Steel is among the top ten steel producers in the world Tata Steel Limited is a Forbes Asia Fabulous 50 company. Tata Steel has a balanced global presence in over 50 developed European and fast growing Asian markets, with manufacturing units in 26 countries. Corus· main operating divisions comprise Strip Products, Long Products and Distribution & Building Systems Division. The NatSteel group produces construction grade steel such as rebars, ¶cut-and-bend· cages for construction, mesh, precage bore pile, PC wires and PC strand. Tata Steel Thailand produces round bars and deformed bars for the construction industry
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Infosys Technologies
Infosys Technologies Ltd. was started in 1981 with US$ 250. Today, it is global leader in the "next generation" of IT and consulting with revenues of over US$ 4 billion y Infosys' offerings span business and technology consulting, application services, systems integration, product engineering, custom software development, maintenance, re-engineering, independent testing and validation services, IT infrastructure services and business process outsourcing y Infosys has a global footprint with over 50 offices and development centers in India, China, Australia, the Czech Republic, Poland, the UK, Canada and Japan. Infosys and its subsidiaries have 103,905 employees as on June 30, 2009. y Infosys Technologies Ltd. is a Forbes Asia Fabulous 50 company
y

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y

y y 1. 2. y 1. 2. y

Satyam Computer Services (Mahindra Satyam) is a leading global business and information technology services company that leverages deep industry and functional expertise, leading technology practices, and an advanced, global delivery model to help clients transform their highest-value business processes and improve their business performance Service Offerings Mechanical Engineering Solutions Product Engineering Manufacturing Engineering Hi-Tech solution Embedded Design Embedded Verification & Validation Geographical Information Systems
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Analysis
y
y

Fundamental Analysis

Earnings per share (EPS) ratio y Price earnings ratio (P/E ratio) y Return on Shareholders Investment or Net Worth Ratio

y
y

TECHNICAL ANALYSIS
Candlestick Chart

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Moving Average Convergence/Divergence (MACD)

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Fundamental Analysis
Company SBI Factors EPS (26mar-2007) P/E EPS (26mar-2008) P/E EPS (26mar-2009) P/E 86.29 78.25 49.53 RIL L&T TATA steel 72.71 Infosys

66.14

11.74 106.56 16.08 143.67 7.063

24.82 133.82 17.18 97.07

43.66 74.34

8.30 64.14 11.79 71.18

29.06 78.15

31.72 59.44

22. 84 101.73 17.75
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16.12

27.09

5.46

EPS Graph
160 1 0 120 100 80 60 0 20 0 SBI RIL L&T TATA steel Infosys
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EPS (26-march2007) EPS (26-march2008) EPS (26-march2009)

Fundamental Analysis
Company SBI Factors Dividend Paid March07 Dividend Paid March08 Dividend Paid March09 140% 110% 1100% RIL L&T TATA steel 155% Infosys 270%

215%

130%

650%

160%

665%

290%

160%

850%

200%

470%

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Dividend Graph
1200% 1000%

800%

Dividend Paid March07 Dividend Paid March08
600%

Dividend Paid March09

400%

200%

0% SBI RIL L&T TATA steel Infosys

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SBI
TECHNICAL ANALYSIS
Prev resistance Prev support Weekly high Weekly low 1840 1599 1822 1721

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SBI
y y y y y y y y y y y y y

INVESTMENT BENEFITS High Growth rate in the share price i.e. better return on investment Dividends paid is also high which create confidence among the investor RISKS Very volatile in nature Conclusion: SBI is very good stock Fundamental is very good Volume in Trading is very good it show it is very active shares Very Stable Company Good for both long term and short term investor Welcome to SMC Global.htm Welcome to SMC Global7divid.htm
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TECHNICAL ANALYSIS
Prev resistance Prev support Weekly high Weekly low 2113 1900 2113 1980

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Reliance Industries Ltd
y y y y y y y y y y y

INVESTMENT BENEFITS High Growth rate in the share price i.e. better return on investment Dividends paid is also high which create confidence among the investor KG band show the bright future of the company RISKS: Very volatile in nature Conclusion: RELIANCE is very good stock Fundamental is very good Volume in Trading is very good it show it is very active shares Very Stable company Good for both long term and short term investor
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TECHNICAL ANALYSIS
Prev resistance Prev support Weekly high Weekly low 1662 1440 1660 1537

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Larsen & Toubro Limited
INVESTMENT BENEFITS y High Growth rate in the share price i.e. better return on investment y Dividends paid is also high which create confidence among the investor y Good Future Project 1 L&T bags RS. 6510 millions orders for projects in Hydrocarbon Sector 2 L&T bags RS. 6510 millions Electrical Project Orders y RISKS y Very volatile in nature y Conclusion: y L&T is very good stock y Growth of 23% over the previous year y Fundamental is very good y Volume in Trading is very good it show it is very active shares y Very Stable Company y Good for both long term and short term investor
y
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‡

TECHNICAL ANALYSIS Prev resistance 443 Prev support 380 Weekly high 443 Weekly low 381

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y

Tata Steel Limited INSTMENT BENEFITS
High Growth rate in the share price i.e. better return on investment Good Future Project India: The Company has embarked upon setting up three green field steel plants in eastern India: 12 MTPA* plant in Jharkhand 6 MTPA plant in Orissa 5 MTPA plant in Chhattisgarh Jamshedpur Steel Works will become a 10 MTPA unit by 2010. *MTPA = million tons per annum Overseas: Vietnam RISKS Very volatile in nature Conclusion: TATA STEEL is very good stock Revenues grew by 12.0% Fundamental is very good Volume in Trading is very good it show it is very active shares Very Stable Company
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y y y

y y y y y y y y y y y y y y

TECHNICAL ANALYSIS Prev resistance 1860 Prev support 1701 Weekly high 1860 Weekly low 1748

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Infosys Technologies Ltd.
y

INVESTMENT BENEFITS

y y y y y y y y y y y y y

High Growth rate in the share price i.e. better return on investment Dividends paid is also high which create confidence among the investor Telstra Selects Infosys as a Key Partner 27 clients were added during the quarter by Infosys and its subsidiaries RISKS Very volatile in nature Conclusion: Infosys is very good stock Revenues grew by 12.7% Fundamental is very good Volume in Trading is very good it show it is very active shares Very Stable Company Good for both long term and short term investor 34

y

TECHNICAL ANALYSIS Prev resistance Prev support Weekly high Weekly low

89 70 89 70

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Satyam.
y

INVESTMENT BENEFITS

y y y y y y y y y y

High Growth rate in the share price i.e. better return on investment (150%) RISKS Very volatile in nature Facing management problem Conclusion: Satyam is very risky stock Net profit 4 Cr in Q1 Volume in Trading is very good it show it is very active shares Very Stable Company due to Mahindra group Good for both long term and short term investor
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Growth of share
160.00% 140.00% 120.00% 100.00% 80.00% 60.00% 40.00% 20.00% 0.00% SBI Reliance Infosys tata steel L&T satyam

Effect of Economic growth on Share Market
y

y y y

Three most significant to stock market investors are inflation, gross domestic product (GDP), and labor market data. INFLATION GROSS DOMESTIC PRODUCT THE LABOR MARKET

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Economic Growth
Year 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 GDP 4.40% 5.80% 3.80% 8.50% 7.50% 9.40% 9.60% 8.70% 6.50% Annual avg. share market Inflation NSE 1336.49 3.74% 4.28% 4.10% 3.73% 4.00% 4.23% 6.33% 5.44% 2.31% 1077.13 1036.10 1428.13 1808.75 2513.40 3572.44 4735.14 4349.1
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GDP & Inflation Graph
12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% GDP

Finding
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NSE Graph
share market NSE
5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 share market NSE

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MARKETING STRATEGIES OF RELIGARE
y y y y y y y y

RELIGARE follow Rapid penetration strategy Minimum broker charges as compare to other company Provide all market in a single platform One of the ³best-in-class´ dealing rooms Pan India footprint Near to your home/office Religare is present in all over India 1800 locations across more than 460 towns & cities. More advertisement on business based websites

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Comparisons
Company Name ICICI Direct Share Khan India Bulls Kotak Reliance Money SMC India info line Religare Broker charges 0.15/0.75In/De 0.05/0.30In/De 0.10/0.50In/De 0.05/0.45In/De 0.02/0.75In/De 0.15/0.50In/De 0.05/0.30In/De 0.02/0.20In/De Margin condition 7/3- 4timesInt/Delv 7/3- 4timesInt/Delv 7/4timesInt/Delv 7/3timesInt/Delv 7/3timesInt/Delv 7/3timesInt/Delv 7/3- 4timesInt/Delv 20/6-8timesInt/Delv

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Some Suggestions to further enhancing the services y All other trading company provide the online demo on their sites but it is not available on Religare site y Religare main focus only in trading by RM. it have to focus on both because the internet population in India grew at 33 per cent and people prefers to do online trading y Provide Pdf form on Religare site. y IPO news flash on the site y Selected news Flash on the sites which effect on share as suggested by your research group
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