Jagadish Project Part 2

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About Dhwaja FINANCE

Dhwaja Share and Securities Private Ltd.

(previously known as Dhwaja Securities and services privateltd.) promoted by Mr. Gaurang Shah and Mr. Sunil Anandparain the year 2005 to carry on the business as share & Stockbrokers and/or sub-brokers.

In the process the company started its activity as clientto main brokers of The Bombay Stock Exchange Ltd and TheNational 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 TheNational Stock Exchange of India Ltd. in the year 2007. Thecompany has performed as sub broker of M/s Twin EarthSecurities P. Ltd. for more then two years. In the MonthNovember of 2009 the company had inducted directornamely Mr. Hemal Shah.

The company has plans to go retail and expand itsactivities in Maharashtra and Gujarat to begin with in additionto the existing retail and HNI client base. The company hasalso procured a business premises in Kandivli of aprox 6000sq ft for its new operation as a Head office. The company isalso in the process of acquiring the required infrastructure forthe proposed new activity

DHWAJA FINANCE is a well-diversified financial

services entity offering clients unbiased advice on structuringa complete investment portfolio. Maintain over three decadesof experience and excellence in the industry; we cultivate acustomerfirst attitude, ethical and transparent businesspractice, professionalism, research based investing andimplementation 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 Commodities (P) Ltd.

Member: Multi-Commodity Exchange (MCX)

Member: National Commodity & Derivatives Exchange

(NCDEX)

Member: National Multi-Commodity Exchange of India

Limited

Why DHWAJA?

We are focused on single set of goals: YOURS. Thedifference in our service and other such firms is the personaltouch that we lent to every transaction. At Dhwaja Finance,customers are not portfolios or ID numbers. We recognizeyou for the person you are and treat your association with usas a relationship. Our investment solutions, advice, and even

personal dealings are tailor made for you. Our relationshipwith you is based on understanding your needs andobjectives and collaborating with you to structurepersonalized financial strategies.

We have made a commitment to help every kind ofinvestors, regardless of account size, to treat each investoras our most important client.

Our Vision:

To be a leading wealth management service provideracting solely in the financial interest of our clients through anationwide network of qualified professionals and businessassociates

Our Philosophy:

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Our business is built upon three importantcornerstonesOur Clients, Business Associates andEmployees. Our Philosophy is unique and clearly defined:

Towards our Clients:

The client is the driving force behind what we do. Ourgoal is to provide the highest quality of products andservices, along with value- added advice and guidance basedon clients needs. We look to develop long term relationshipswith our clients built on strong ethics and trust.

Towards our Business associate:

The power of partnerships engenders involvement,respect and mutual support. This is precisely the relationshipthat we foster with our Business Associates. We provide acomplete platform built upon the best infrastructure andtechnology to enable our Business Associates to efficientlyservice the financial needs of our investing clients.

Towards our Employees:

Our employees are what set us apart. We are all herefor one reason to serve our clients best interests. It isleadership and accountability across our organization that weestablish a common direction, encourage creativecollaboration and providing an inspiring environment for ourpeople

Our Values:

Upholding these values is the primary responsibility ofleaders at every level within Dhwaja.

Partnership: Relationships among our staff

members as well as our clients are driven by the

power of partnership. The power of partnership

engenders involvement, respect, contribution and

mutual support. We encourage free exchange of ideasand demand teamwork.

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Striving for excellence: While serving our clients

we constantly strive for excellence to ensure that

they derive complete satisfaction in their dealings

with us.

Client focus: We aim to provide the highest

quality of products and services to best serve the

changing needs of clients.

Teamwork: We strive for seamless integration of

services through cooperation and collaboration within

and across workgroups and teams.

Meritocracy: We invest in our employeesdevelopment and actively strive to be the best at

attracting and retaining talented people. Our success

calls for entrepreneurial spirit and initiative from each

individual.

Integrity: At Dhwaja, our goal is to act in ways

that help us to exemplify the highest standards of

personal and professional ethics in all aspects of ourbusiness.

Privacy: We respect our clients right to privacy

and use information with appropriate discretion.

Product OF DHWAJA

Equity :-

A corporate member of NATIONAL STOCK EXCHANGE inboth Capital Market and Derivatives segments. The companyis also member of other premier exchange of the country i.e.,BSE.

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We undertake buying and selling of shares for individuals,HNIs and corporate besides for institutional client; provideadvisory board services to clients in taking investmentdecisions in purchase and sale of shares. Our research teamextends advisory to clients (HNIs and corporate in taking

investment decisions in buying & selling of Shares/Stocks,etc.

EQUITY investing with DHWAJA

Why invest in Stocks?

Although past performance cannot guarantee future marketresults, stocks historically have outperformed all other longterm financial assets. They are the only financial assets thathave significantly outpaced inflation overtime.

FEATURES of EQUITY investing withDHWAJA

Growth of capital:

Shares offer capital growth over the long term, depending onthe company concerned.

Potentially Higher Return:

Many investors worried about day-to-day market volatility,shun stocks. But the stock market has provided considerablyhigher return over fixed deposits and other fixed-income

investments over a period of time.

Risk:

Simply stated, higher returns are associated with higherrisks. You, as an investor, need to understand your risktolerance level and certain principles of investing which canhelp you diversify and mitigate this risk.

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Benefits of Equity investing with Dhwaja

The role of a full-service brokerage firm goes far beyondexecuting buy-and-sells transactions. At Dhwaja Finance, wehelp you assimilate the massive amount of information

trends in the economy, the markets, specific industries andindividual companies that may affect your particularinvestments decisions.The role of Dhwaja Finance is to help you, the investors,make deliberate, thoughtful decisions that match yourpersonal needs with suitable investment alternatives.

COMMMODITY Trading with Dhwaja

Why invest/trade in commodities?

Of late, commodities have come to be accepted as a separateasset class with a unique and distinct source of returns in

India, along with traditional avenues like stocks, bonds andreal estate. Commodity prices impact you in every sphere oflife whether you are a producer, trader or a consumer. Youcan now proactively participate in the Commodity markets byinvesting and trading in a range of commodities. In theprocess of the company started its activity as a main brokerof Multi Commodity Exchange of India Ltd. (MCX), and alsoadmitted in National Multi Commodities Exchange of IndiaLtd. (NMCE) as a trading cum clearing member and in

National Commodities and Derivatives Exchange of India Ltd.(NCDEX) as a trading member.

COMMMODITIES offered on MCX & NCDEX

Precious Metals: Gold, Silver

Other Metals: Aluminum, Copper, Nickel, Steel, Teen

Energy: Crude oil, Brent crude

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Agricultural Products: Chana, Guar Gum, Guar seed,

Gur, Jeera, Maize, Kapas, Raw Jute, Red chilly, pepper,

cashew, Castor seed, Crude Palm oil, Expeller Mustard

oil, Mustard seed, Ground Nut oil, RBD palmolein, Soya

Bean, Soy seed, Refined Soya oil, Rubber, Sugar,Turmeric,YellowPeas.

Participate in COMMMODITIES Markets as...

Hedger:One who wants to hedge the price risk in the

commodity he is exposed to.

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 positionbased on an informed opinion of the markets.

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The membership ID's & SEBI registrationnumbers are as under:

SEBIBrokerRegn No.

Exchange TradeName

RegistrationNo.

CERT.DT.

INB231372930

NseCapitalMarket

DHWAJASHARES &SECURITI

ES PVTLTD

13729 26/03/2010

INF231372930

NSEFuture &Option

DHWAJASHARES &SECURITIES PVTLTD

13729 26/03/2010

INE23137293

NSECurrency

Derivetives

DHWAJASHARES &

SECURITIES PVTLTD

13729 26/03/2010

INB011372936

BSECapitalMarket

DHWAJASHARES &SECURITIES PVTLTD

3301 26/03/2010

INF011372936 BSE Future& Option DHWAJASHARES &SECURITIES PVTLTD

3301 26/03/2010

INE261372930

MCX StockExchange

DHWAJASHARES &SECURITIES PVT

LTD

13729 26/03/2010

MCX/TC MCX DHWAJA 35780 -

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M/CORP/1549

COMMODITYSERVICESPVT LTD

NCDX/P

M/CORP/0999

NCDX DHWAJA

COMMODITYSERVICESPVT LTD

1024 -

MC/TCM/CORP/0360

NMCE DHWAJACOMMODITYSERVICESPVT LTD

CL0434

-

Contact us:-

Head Office :

603/Sanjar Enclave,Khajuria LaneOpp Milap Cinema.Kandivali-West.Mumbai-400067.Board Line : 42552700/701

Register Office:

103, Laxmi villa,

M.G.Road,Opp.Hanuman Temple,Kandivali (West)Mumbai- 400067.Tel : 2862 20 91/2861 38 70.

Surat Branch:G-13,Empire State Building,Udhna DarwajaRing Road.Surat-395001.Board Line :

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ResearchMethodol

ogy

(a)Statement of Problem: It is risk return to construct and

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Analyses of the portfolio

Under different sectors.

(b)Objective of study: (1) To construct the portfolio byDoing fundamental and price

Trend analysis

(2) To construct the portfolio by

Considering risk and return

Associated with it.

(3) To measure risk and return ofConstructed portfolio and to

Revise it if it is necessary.

(c)Period covered: 2 month

(d) Sources of data:

Secondary data: Expert guide,

magazine, books, website,

nseindia.com, Bseindia.com

(e) Scope of Study:

a) Study covers the scripts from

different sectors.

b) Study emphasis more on

fundamental and technical

analysis rather than government

interferences.

c) Study covers only equity share of

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different sectors. It do not cover

mutual fund and any other

instrument under different sectors.

(f) Selection of Sample:

Project has covered Top 20

companies under different sector. Top 20 companies are

selected on the basis of their market capitalization and total

turnover.

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. Once the

investment has been done, it is necessary to review

risk & return, otherwise our investment is not giving

proper return and minimize risk.

This project give idea how to select scripts for

portfolio, how to calculate .

(h) Data Collection:

Annual report of selected companies for ratio analysis.

Closing price of selected companies of last 1 year

(monthly).

Closing price of index of last 1year(monthly).

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(i) Tools & Techniques:

Sharp single index model for portfolio construction.

Ratio analysis.

Calculation of

(j) Chapter planning:

a. About company

b. About capital market

c. Research Methodology

d. About different sector

e. Fundamental Analysis of companies

f. Portfolio construction &analysis.

g. Portfolio Review.

h. Conclusion.

(k)Limitation of study:

Some of scripts are selected. They may not give true

idea.

Only financial position is covered for portfolio

construction.

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Techniques which can used may not fully scientific.

Introductionabout

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Capital

Market

A capital market is a market for securities (debt or equity),

where business enterprises (companies) and governments

can raise long-term funds. It is defined as a market in which

money is provided for periods longer than a year, as the

raising of short-term funds takes place on other markets

(e.g., the money market). The capital market includes the

stock market (equity securities) and the bond market (debt).

Financial regulators, such as the UK's Financial Services

Authority (FSA) or the U.S. Securities and Exchange

Commission (SEC), oversee the capital markets in their

designated jurisdictions to ensure that investors are

protected against fraud, among other duties.

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CAPITALMARKET

Capital markets may be classified as

primary markets and secondary markets. In primary

markets, new stock or bond issues are sold to investors via a

mechanism known as underwriting. In the secondarymarkets, existing securities are sold and bought among

investors or traders, usually on a securities exchange, over-

the-counter, or elsewhere.

Under a secondary market offering or

seasoned equity offering of shares to raise money, a

company can opt for a rights issue to raise capital. The

rights issue is a special form of shelf offering or shelf

registration. With the issued rights, existing shareholders

have the privilege to buy a specified number of new shares

from the firm at a specified price within a specified time. A

rights issue is in contrast to an initial public offering (primary

market offering), where shares are issued to the general

public through market exchanges

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INDUSTRIALSECURITIES

GOVERNMENTSECURITIES

LONG ERMS

LOAN

MARKET


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The securities market can be divided in to three parts:

1.) Industrial securities market

2.) Government securities market

3.) Long term loans market

1.) INDUSTRIAL SECURITIES MARKET :-

The industrial securities market consists of two

complementary parts i.e. the New Issue Market, and

Secondary Market.

It is a market for industrial securities namely:

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PRIMARYMARKET

SECONDARY

MARKET


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(i) Equity shares or ordinary shares or common stock.

(ii) Preference shares

(iii) Debenture or Bonds.

The corporate sector raises their capital through these abovethree types of securities. This is the physical or tangible asset

through which the market functions.

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. The NewIssue Market deals with new securities i.e. securities which

were not previously availably and are offered to the investing

public for the first time. Primary market is a market for New

issues or New financial claims. Hence, it is called New Issue

Market. The market, therefore,derives its name from the fact

that it makes available a New Block of Securities for public

subscription. In the Primary market, borrowers exchange

new financial securities for long term funds. It facilitates

capital formulation.

Companies raise ite capital in the primary market though:

(i) Public Issue

(ii) Right Issue

(iii) Primary placement/subscription

The most popular method of raising capital is sale of

securities to the public by new companies is called Public

Issue. Right Issue means, when existing company first

offered. The security to existing shareholders on a Pre

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emptive bases, while company want to raise additional

capital is called capital is called Right Issue. Private

placement imagine private sale of securities to small group

investors.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. The main benefit of Secondary market

is securities sold and purchased continuously among

investors without involvement of company. This marketconsists of all stock exchange recognized by the Government

of India. The stock exchange in India are regulated under the

securities contracts (Regulation) Act, 1956.

2.) GOVERNMENT SECURITIES MARKET :-

The government securities market (G-secs) is the

largest segment of the long term debt market in India,

accounting for nearly two-thirds of the issues in the primary

market and more than four fifths of the turnover in the

secondary market.

It is otherwise called Gilt-Edged securities market. It is

a market where Government securities are traded. In India

there are many kinds of Government Securities-short term

and long term. Long term securities are traded in this market

while short term securities are traded in the money market.

Securities issued by the Central Government, State

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Government, Semi Government authorities like city

Corporation, Port Trusts etc. Improvement Trusts, State

Electricity Boards, All India and State level financial

institutions and public sector enterprise are dealt in thismarket.

Participants in the G-secs Market

Banks are the largest holders of G-secs. About one

third of the net demand and time liabilities of the banks are

partly in government securities market mainly to meetstatutory liquidity requirements and partly for investment

purpose. Apart from banks, insurance companies, and

provident funds have substantial holdings of G-secs almost

one-fifth of the outstanding G-secs are held by these

institutions. Other investor in G-secs includes mutual funds,

primary and satellite dealers, and trusts.

Government securities are issued in denominations of

RS. 100. Interest is payable half- yearly and they carry tax

exemptions also. 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.L.R. requirements.

The secondary market for these securities is very

narrow since most of the institutional investors tend to retain

these securities until maturity.

The Government securities are in many forms. These are

generally:

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(i) Stock certificates of inscribed stock

(ii) Promissory Notes

(iii) Carrier Bonds which can be discounted.

Government securities are sold through the Public DebtOffice of the RBI while Treasury Bills are sold through

auctions.

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. Hence this market also plays a vital role inmonetary management.

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) Term loans market

(ii) Mortgages market

(iii) Financial Guarantees market.

(i) Term Loans Market

In India, 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

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corporate customers directly as well as indirectly. These

development banks dominate the industrial finance in India.

Institutions like IDBI, IFCI, ICICI, and other state financial

corporations come under this category. These institutionsmeet the growing and varied long term loans. They also help

in identifying investment opportunities, encourage new

entrepreneurs and support modernization efforts.

(ii) Mortgages Market

The mortgage market refers to these centers which

supply mortgage loan mainly to individual customers. A

mortgage loan is a loan against the security of immovable

properly like real estate. The transfer of interest in a specific

immovable properly to secure a loan is called mortgage. This

mortgage may be equitable mortgage or legal one. 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.

Legal mortgage is less risky.

Similarly, in the first charge, the mortgages transfer his

interest in the specific property to the mortgagee as security.

When the properly in question is already mortgaged once to

another creditor, it becomes a second charge when it is

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subsequently mortgaged to somebody else. The mortgagee

can also further transfer his interest in the mortgaged

property to another, In such a case, it is called a sub

mortgage.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 re-

sales of existing mortgages at prevailing prices.

In India residential mortgages ate the most common

ones. The Housing and Urban Development Corporation andthe LIC play a dominant role in financing residential projects.

Besides, the Land Development Banks provides cheap

mortgages loans for the development of lands, purchase of

equipment etc. 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. Guarantee is a contract to discharge the

liability of a third party in case of his default. Guarantee acts

as a security from the creditors point of view. In case the

borrower fails to repay the loan, 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.

Though there are many types of guarantees, the

common forms ate:

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a) Performance Guarantee

b) Financial Guarantee

Performance guarantees cover the payment of earnest

money, retention money, advance payments, non-completionof contracts etc. On the other hand financial guarantees

cover only financial contracts.

In India, the market for financial guarantees is well

organized. The financial guarantees in India relate to:

A. Deferred payments for imports and exportsB. Medium and long term loans raised abroad

C. Loans advanced by banks and other financial

institutions.

These guarantees ate provided mainly by commercial

banks, development banks, Governments both central and

states and other specialized guarantee institutions like ECGC

(Export Credit Guarantee Corporation) and DICGO (Deposit

Insurance and Credit Guarantee Corporation). This guarantee

financial service is available to both individual and corporate

customers. For a smooth functioning of any financial system,

this guarantee service is absolutely essential.

Capital market is important as it plays an

important role in bringing rapid industrial development in a

country. The savings are invested profitably for economic

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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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Introductionabout

DifferentSectors

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INTRODUCTION ABOUT SECTOR

A. Meaning of sector:

There are many companies or scrip that manufacturer thesame products Provide services are specified under theparticular name that called sector.

B. List of the sector:

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The

meaning

of

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Banking

Chemicals

Infrastructure

Pharmaceutical

Fertilize

Agro Inputs

Auto Ancillaries

Auto Mobiles

Aviation

Breweries & Distilleries

Cement

Cigarettes

Textiles

Consumer Durables

Courier & Logistic Services

Cycle & Accessories

Diversified

Dye Stuff

Engineering

Financial Institutions

About Banking Sector


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investment banking is not the financial investment in the

banking sector. But in fact, investment banking is a kind of

banking function which is used to help clients in creating

wealth and funds. The commercial banks use this type ofbanking in accord with sensible and practical use of the

available resources. Not only this, investment banking and

people engaged in this sector also provides advice on how to

transact in business they are currently in.

Through investment banking, companies can create funds in

two ways. They can either draw on public funds from capital

market by releasing the stock i.e. corporate finance or they

can go to venture capitalists or private equities to become

share holders in their company. The field of investment

banking is also engaged in giving advice and consultation on

how to manage various takeovers and merging i.e. [M&A]

merger and acquisitions. 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.

The margin between investment banking and other forms ofbanking has been very unclear for a long time now and for

the same time; the function of this banking sector has grown

to covering every field of wealth management process of

corporate as well as individual persons.

Corporate Finance: this is the sector where investment

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banking works and supports companies the most in getting

extra money. Lets take an example that a company needs

more money to finance the market research of a product to-

be launched to stay forward in competition. Here, investmentbanking can help you by getting your companys shares sold

and raising funds for you. The other way, how an investment

bank can get you money is by trading in stocks on behalf of

their clients.

[M&A] Merger and Acquisitions:

This point doesnt have any explanation and it can be defined

only through an example. Lets 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; both

these companies can be a great group and can acquire major

part of the market and also the business. 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. Among other

import The last decade has seen many positive developments

in the Indian banking sector. The policy makers, which

comprise the Reserve Bank of India (RBI), Ministry of Finance

and related government and financial sector regulatory

entities, have made several notable efforts to improve

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regulation in the sector. The sector now compares favorably

with banking sectors in the region on metrics like growth,

profitability and non performing assets (NPAs). A few banks

have established an outstanding track record of innovation,growth and value creation. This is reflected in their market

valuation. However, improved regulations, innovation, 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. Indias banking industry must strengthen itselfsignificantly if it has to support the modern and vibrant

economy which India aspires to be. While the onus for this

change lies mainly with bank managements, an enabling

policy and regulatory framework will also be critical to their

success.

The failure to respond to changing market realities has

stunted the development of the financial sector in many

developing countries. A weak banking structure has beenunable to fuel continued growth, which has harmed the long-

term health of their economies. In this white paper, we

emphasize the need to act both decisively and quickly to

build an enabling, rather than alimenting, banking sector in

India.

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Influenced by the global financial turmoil and repercussion of

the subprime crisis, 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 nearbankruptcy. 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. Further with the

economic buoyancy the world over showing signs of cooling

off, the investment cycle has also been wavering. Having

said that, the latent demand for credit (both from the foodand non food segments) and structural reforms have paved

the way for a change in the dynamics of the sector itself.

Besides gearing up for the compliance with Basel II accord,

the sector is also looking forward to consolidation and

investments on the FDI front.

Public sector banks have been very proactive in their

restructuring initiatives be it in technology implementation or

pruning their loss assets. While the likes of SBI have made

already attempts towards consolidation, others are keen to

take off in that direction. Incremental provisioning made for

asset slippages have safeguarded the banks from witnessing

a sudden impact on their bottom lines.

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. However, on the liabilities side, with

better penetration in the semi urban and rural areas the

banks garnered a higher proportion of low cost deposits

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thereby economizing on the cost of funds.

Apart from streamlining their processes through technology

initiatives such as ATMs, telephone banking, online banking

and web based products, banks also resorted to cross selling

of financial products such as credit cards, mutual funds and

insurance policies to augment their fee based income.

Understanding the expectations of stakeholders and then

responding appropriately is crucial to the industrys ability to

do business. Only by earning the trust and respect of

stakeholders will the industry maintain their license to

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About Chemical Sector


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operate in communities across the world.

Sustainability, UK approached TERI to execute a survey to

understand whether in India sustainable developmentimperatives are driving change in the chemical industry and

shaping the perceptions of the industrys stakeholders. And

most importantly, to explore what stakeholders believe a

WBCSD project should cover for the realization of a

sustainable chemical industry in India.

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. The

essence of the interview was to understand views of the

stakeholders:

On the Indian chemical sector

Industrys 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

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previous experience and existing database.

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, in specific.

The stakeholder dialogue saw 20 participants

deliberating on the subject.

Responses and Limitations:-

Representatives of 19 stakeholders responded to the survey

in a limited time frame of one and a half months, which was

a major constraint. 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 activestakeholders in this area.

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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 inIndia. Given the limited time frame, TERI has analyzed,

consolidated and

Over the past four years, the Indian Economy

consistently recorded growth rates in excess of 8.5% per

annum resulting in rapidly increasing infrastructure

spending. Total infrastructure spending is expected to

increase from US$ 24 billion in 2005 to US$ 47 billion in

39

About Infrastructure Sector


40/73

2009. (FICCI)Total investment requirement in the

infrastructure sector over the next five years is US$ 445

billion

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. With the objective of

stimulating and mobilizing increased private sector

investments, either from domestic sources or foreign

avenues, the government

has offered various incentives:

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Liberalization of FDI Regulations

i. Barring aviation, 100% FDI under the automatic route is

now permitted in all infrastructure sectors.

ii.FDI under the automatic route is permitted up to 49% -

100% for various services in the aviation sector.

Extended tax holiday periods

Under section 80-IA of the Income Tax Act, 1961, a ten

year tax holiday is available to enterprises engaged in the

business of development, operation and maintenance of

infrastructure facilities, subject to compliance with the

conditions prescribed therein.

Introduction of Public Private

Partnerships

Based on resounding global success, the government has

introduced the concept of public-private partnershipsin

India, to combine the best practices of public and private

sectors to efficiently develop and maintain infrastructure

facilities. PPPs are aimed at inducing private sector

participation in activities which might otherwise prove to

be cost prohibitive e.g. development, operation and

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maintenance of toll roads.

The Industry has received an aggregate of US$ 6.6

billion in infrastructure investments over the pastsix years.

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.

Roads

India has one of the largest road networks in the

world, aggregating to approximately 3.34 million

kilometers. (Economic Survey 2007-08)

The Government has laid down ambitious plans for

development and up gradation of the domestic road

network. Private sector participation through PPPs is

being actively encouraged to achieve greater

efficiencies in development, operation and

maintenance.

It is estimated that the total investment requirement

for development and up gradation of the countrys

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road network over the next five years is

approximately US$ 55 billion. (Economic Survey

2007-08)

The Indian Pharmaceutical Industry is capable to meet the

country's demand for every drug. The manufacturing units

within the country are meeting about 80% of the country's

drug requirements. The drug production sector is equipped

with technology and researched knowledge base. The

industry produces drugs worth rupees 18000 cores and is

growing at 9 per cent every year. It offers quality products

43

About Pharmaceuticals Sector


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with internationally accepted quality standards. There are

about 20,000 production units in India with products sold at

competitive lower prices than international drug prices.

India has various competitive advantages in Pharma

production over western world. 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. Low cost of researchover the Western countries gives India a potential advantage

for future developments.

The country has an open market policy where foreign capital

investment is permitted. Restriction on capital investment

has been removed in the recent years with a view to make

new investments profitable. Also, the country has a strong

legal framework, an essential for pharmaceutical industry.

The most promising fact about India is a 70 million middle

class population with good consumption power.

In this section Naukri hub researches in to the prospects of

Indian Pharmaceutical industry in detail.

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

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value. It is growing at an average rate of 7.2 % and is

expected to grow to US $ 12 billion by 2010.

Over the last two years the pharmaceutical market value hasincreased to about US $ 355 million because of the launch of

new products. According to an estimate, 3900 new generic

products have been launched in the past two years. These

have been by and large launched by big brands in the

Pharma sector. And in the year 2005 Indian pharmaceutical

companies captured around 70% of the domestic market.

As in the present scenario, only a few people can afford

costly drugs, which have increased price sensitivity in the

pharmaceutical market. Now the companies are trying to

capture the market by introducing high quality and low pricemedicines and drugs.

With the Product Patent Act, which came into action in

January 2005, this industry is able to attract big MNCs to

India. Earlier these big firms had apprehensions in launching

new drugs in the Indian market.

At present, a large number of Indian pharmaceuticals

companies are looking for tie-ups with foreign firms for in-

license drugs. GlaxoSmithKline is among the top choices for

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the firms that wish to launch their product in India, but do

not have any branch over here.

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, whereas contract research is

estimated to reach US$6-10 billion.

Indian multinational companies like Dr.Reddy's Lab, Cipla,

Ranbaxy, etc have created awareness about the Indianmarket prospects in the international pharmaceutical market.

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.

Furthermore, the changes that took place in the patent law,

change of process patent to product patent, have helped in

reducing the risk of loss for intellectual property.

Industry Strengths:

Capital Investment in Technology: Owing to the

availability of advanced technology at low costs, the

companies can produce drugs at lower costs.

Cost Effective: The filing cost of ANDAS and DMFs is

comparatively low for the Indian companies.

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Manpower: There is a large pool of technical experts

available at modest salaries.

Contract Research & Contract Manufacturing: There is a

good scope for contract research and contract

manufacturing.

Infrastructure: There is a well-developed infrastructure

for the pharmaceutical industry.

Generic Drugs: In the last few years, the generic drug-

manufacturing segment has received huge

investments, in the process making it more

competitive and efficient.

Fertilizer is key input in enhancing crop

production. Fertilizer consumption and food grain production

is closely correlated (Table 1). Presently fertilizer contributes

about50% to the total increase in food grain production.

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About FertilizerSector


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Increasing pressure of population and hiking land resources

demand for vertical expansion of agriculture where the role

of fertilizers will further increase. At the present level of

nutrition, additional 150 million tons of food grain productionhas to be achieved to feed almost 1.5billionpeople by 2040.

This estimate does not include demand for animal feed,

which will rise due to depleting grasslands. Thus, the crusade

of higher production of food grain has to continue with

increased vigor using fertilizers along with the other sources

of plant nutrients.

Table -1. All India Fertilizer Consumption and Foodgrain

Production (Million tons)

yearFertilizer Consumption

(N+P205+K20) Food grain Production

1951-52 0.05 51.99

1961-62 0.34 82.71

1971-72 2.66 105.171981-82 6.07 133.3

1991-92 12.73 168.37

2000-2001 16.63 196.07

Production of Fertilizers

India has become third largest country with a total capacity

of 11.757 million tons of N and 5.056 million tons of P2O5 in

year 2000-2001.Domesticproduction of nitrogenous fertilizers

was 10.942 million tons in 2000-2001, whereas production of

phosphatic fertilizers was 3.734million tons (Table 2), which

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are marginally high, compared to last years production. All

India capacity utilization has gradually improved over the

years and was maintained at almost cent per cent level.

However, during2000-01 restrictions were imposed oncapacity utilization for Urea at 92% as a consequence the

production of urea declined. The increase in production of

total N is observed due to increase in production of DAP and

other complexes which also have 'N'. Production of DAP

during 2000-01 was 10 % higher compared to previous year

(Table 3).

Imports of Fertilizers

The gap between demand and domestic supply is met

through imports. Imports of urea have declined substantially

during the past five years (Table 4). There have been

virtually no imports of urea during

200001. except some quantity vocative consumption. India

is presently self sufficient in respect of urea and DAP. The

entire quantity of potashis imported, mostly as MOP.

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. The Indian fertilizer

industry, which achieved phenomenal growth in eighties,

witnessed decline in the growth rate during the nineties.

In the recent past, the fertilizer industry has not

attracted any significant investment. Due to sufficient

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indigenous capacity and low international prices of urea the

Government of India in Feb. 2000 decided that no new

grassroots projects will be allowed during the next three

years. Even if the Government reviews its decision, theearliest a project could start would be by 2004-05. Lack of

availability of natural gas in the country has prompted

investors to collaborate for joint ventures abroad for urea

production. Gulf countries, due to abundant availability of

gas, nearness to Indian shores and investment friendly

environment, are becoming the first choice for joint ventures.Government is keen on implementation of Indo-Oman

Fertilizer Project. The financial closure is expected by October

2001 and the commercial production will begin 36 months

After that. India will purchase the entire production of 1.65

million tons per annum of urea, from this project on long

term basis.

As India does not have significant high-grade rock phosphate

reserve, 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. 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. Apart from thee existing

joint venture plants for phosphoric acidic Senegal, Jordan and

Morocco, some more JV projects are under negotiation.

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Fundamental ofCompanies

Portfolio construction have selectedfollowing companies from different sectorswhich are fundamentally sound.

No company's Name PriceEarningRatio(P/Eratio)

Earning PerShare(EPS)

BookValue(BV)

FaceValue(FV)

OperatingprofitMargin

(OPM)

GrossProfitMargin(GPM

)

NetProfitMargin(NPM)

1 CIPLA LTD 22.43 13.47 73.5 2 20.48 21.59 14.73

2 J.B.CHEMICALS &PHARMACEUTICALS LTD

11.63 11.98 72.6 2 22.09 21.59 17.05

3 SUNPHARMACEUTICALINDUSTRIES LTD

47.86 8.68 55.2 1 42.54 48.32 44.44

4 TORRENTPHARMACEUTICAL

LTD

20.95 54.51 104.1 5 21.3 20.74 14.29

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5 JUPITERBIOSCIENCE LTD

11.1 19.1 66.5 10 50.16 36.59 17.49

6 GUJARATNARMADA VALLEYFERTILIZERSCOMPANY

12.5 7.97 133.8 10 18.34 18.7 10.48

7 BHARATFERTILIZERINDUSRIES LTD

5.28 10.24 18.2 10 13.15 13.21 9.24

8 MANGLORECHEMICALS &FERTILIZERS LTD

6.57 4.77 28.8 10 6.67 5.28 4032

9 TATA CHEMICALSLTD

18.41 17.87 182.4 10 13.26 12.75 7.27

10 SPICE ISLANDSAPPARELS LTD

1.95 8.64 90.4 10 1.78 0.68 2.05

11 ALFA LAVAL INDIALTD

19.68 59.54 207.9 10 15.13 17.14 9.96

12 GEI INDUSTRIESSYSTEMS LTD

18.97 8.94 52.6 10 16.42 12.28 7.91

13 KULKARNI POWER& TOOLS LTD

4.42 13.59 57.5 5 13.4 8.82 3.3

14 SARASWATIINDUSTRIESSYNDICATE LTD

8.18 11330 563.2 10 5.95 6.06 3.04

15 YUKEN INDIA LTD 9.61 23.1 109.5 10 13.82 12.29 7.07

16 C & C

CONSTRUCTIONSLTD

5.11 19.54 246.1 10 21.27 11.1 1.88

17 DLF LTD 49.99 4.51 75.6 2 56.7 32.42 19.71

18 EXELONINFRASTRUCTURELTD

34.6 2.6 19.5 10 5.54 5.11 4.33

19 CONSOLIDATEDCONSTRUCTIONCONSORTIUM

10.17 5.06 87.5 2 9.74 7.47 3.35

20 PUNJ LLOYD LTD 5.73 11.06 107.6 2 8.88 8.06 2.2

21 STATE BANK OFINDIA

16.74 44.54 1038.57 10 64.27 27.36 11.14

22 FEDERAL BANKLTD

11.24 8.37 274.03 10 65.3 31.19

12.51

23 CORPORATIONBANK

5.76 26.66 402.6 10 74.91

26.94

13.98

24 ING VYSYA BANKLTD

14.62 20.19 183.79 10 14.05

13.68

12.05

25 HDFC BANK LTD 26.03 23.43 463.66 10 56.0

7

32.6 17.11

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PortfolioConstruction

&Analysis

Calculation of CIPLA LTD

Calculation of Ri

Month CLOSINGPRICE

Return

Jan 317.3 -5.45292Feb 315.3 -0.63032

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Mar 337.1 6.91405

Apr 342.55 1.616731

May 318.95 -6.88951

Jun 337.75 5.894341

Jul 326.6 -3.30126

Aug 303.35 -7.1188Sep 321.65 6.032636

Oct 352.25 9.513446

Nov 343.7 -2.42725

Dec 369.9 7.622927

summation 11.77408

Averagereturn

0.981173

Ri = Summation of Return12

Ri = 11.7740812

Ri = 0.981173

Calculation of

Month y X XY x2 Y2

Jan -5.4529201 -6.3376 34.55842643 29.7343376 40.16517

Feb -0.6303183 0.437646 -0.27585628 0.39730116 0.191534

Mar 6.9140501 6.684419 46.21640786 47.8040888 44.68146

Apr 1.6167309 0.17652 0.285385338 2.6138188 0.031159

May -6.889505 -3.4973 24.09466654 47.4652819 12.23111

Jun 5.8943408 4.463184 26.30752755 34.7432535 19.92001

Jul -3.301258 0.945658 -3.121861321 10.8983064 0.894269

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Aug -7.118799 0.575489 -4.096790978 50.6773106 0.331188

Sep 6.0326356 11.67429 70.42673746 36.3926923 136.289

Oct 9.5134463 -0.18327 -1.743529303 90.5056605 0.033588

Nov -2.427253 -2.55132 6.192700144 5.89155907 6.509234

Dec 7.622927 5.060332 38.57454143 58.109016 25.60696

Total 11.774076 17.44804 237.4183549 415.232627 286.8847

y 0.981173 1.454004

= (12)(237.41)-(17.44)(11.77)(12)(415.23)-(304.43)

= 0.842394

Calculation of

= y- x

= (0.9811) (0.8423)(1.4540)

= -0.2436

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Calculation of ei2

ei2 =

= (286.88)-(-0.2436)(11.77)- (0.8423)(237.41) 12

ei2 =18.1751

Calculation of 2i

Month Sensex Return (x-x) (x-x)2

Jan 16,357.96 -6.3376 -7.79161 60.70911

Feb 16,429.55 0.437646 -1.01636 1.032983

Mar 17,527.77 6.684419 5.230415 27.35725

Apr 17,558.71 0.17652 -1.27748 1.631965

May 16,944.63 -3.4973 -4.9513 24.51537

Jun 17,700.90 4.463184 3.00918 9.055165

Jul 17,868.29 0.945658 -0.50835 0.258415

Aug 17,971.12 0.575489 -0.87852 0.771789

Sep 20,069.12 11.67429 10.22028 104.4542

Oct 20,032.34 -0.18327 -1.63727 2.680655

Nov 19,521.25 -2.55132 -4.00533 16.04266

Dec 20,509.09 5.060332 3.606328 13.0056

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Summation 17.44805 261.5151

Averagereturn

1.454004

2i = (x-x)2n

2i = 261.5151

12

2i =21.7929

Calculation ofRi, , ei2 , ofdifferent companies :-

NO.

COMPANY Ri ei2 1 CIPLA LTD 0.982 0.842 18.175 -

0.24367

2 J.B.CHEMICALS &PHARMACEUTICALS

LTD

7.85 0.602 105.21 6.974271

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3 SUNPHARMACEUTICALINDUSTRIES LTD

3.053 0.949 35.480 1.67276

4 TORRENTPHARMACEUTICAL

LTD

3.515 0.259 60.818 3.138294


-2.68 -0.266 111.75 -2.3019

56 GUJARAT

NARMADA VALLEYFERTILIZERS CO.

1.522 -0.034 39.777 1.571131

7 BHARATFERTILIZER

INDUSRIES LTD

9.023 0.833 299.72 7.812675


6.255 -0.532 102.63 7.028432

9 TATA CHEMICALSLTD

2.04 0.962 52.611 0.64094


5.268 1.814 337.99 2.631536

11 ALFA LAVAL INDIA

LTD

0.323 0.472 30.402 -

0.3632512 GEI INDUSTRIES

SYSTEMS LTD8.736 1.564 180.93

16.4613

513 KULKARNI POWER

& TOOLS LTD1.142 -0.154 63.239 0.3666

6514 SARASWATI

INDUSTRIESSYNDICATE LTD

-0.19 0.484 56.43 -0.8978

915 YUKEN INDIA LTD 8.099 0.238 113.78 7.7523

8816 C & C

CONSTRUCTIONSLTD

-1.31 0.764 26.494 -2.4177

617 DLF LTD -1.29 1.746 32.835 -

3.82708

18 EXELONINFRASTRUCTURELTD

0.68 3.381 680.30 -4.2354

4

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19 CONSOLIDATEDCONSTRUCTIONCONSORTIUM

-1.72 0.48 32.071 -2.4178

720 PUNJ LLOYD LTD -4.01 2.358 57.190 -

7.4335

921 STATE BANK OF

INDIA2.095 1.006 39.069 0.6326

0422 FEDERAL BANK LTD 4.92 0.259 96.239 5.2959

323 CORPORATION

BANK3.817 0.776 58.426 2.6884

1724 ING VYSYA BANK

LTD2.255 1.172 69.643 0.5514

55

25 HDFC BANK LTD 2.965 1.166 21.369 3.055085

(A) Ranking the securities

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62

NO

COMPANY Ri

Ri/ Rank

1 CIPLA LTD 0.982 0.842 1.165 152 J.B.CHEMICALS

&PHARMACEUTICALS LTD

7.85 0.602 13.03 4

3 SUN

PHARMACEUTICAL INDUSTRIESLTD

3.053 0.949 3.215 9

4 TORRENTPHARMACEUTICAL LTD

3.515 0.259 13.55 3

5 JUPITERBIOSCIENCELTD

-2.689 -0.266 10.10 6

6 GUJARATNARMADAVALLEYFERTILIZERSCOMPANY

1.522 -0.034 -45.03 25


9.023 0.833 10.83 5

8 MANGLORE

CHEMICALS &FERTILIZERSLTD

6.255 -0.532 -11.7 24

9 TATACHEMICALS LTD

2.04 0.962 2.120 12


5.268 1.814 2.905 10

11 ALFA LAVALINDIA LTD

0.323 0.472 0.683 16


8.736 1.564 5.584 7

13 KULKARNIPOWER &

TOOLS LTD

1.142 -0.154 -7.432 23


-0.194 0.484 -0.401 18

15 YUKEN INDIA

LTD

8.099 0.238 34.01 1

16 C & CCONSTRUCTIONS LTD

-1.307 0.764 -1.71 21

17 DLF LTD -1.289 1.746 -0.73 19

18 EXELON 0.68 3.381 0.201 17


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Where,

I * (Ri-Rf)*C = ei

1+ I i

ei

Ri Rf is selected.

Calculation of Cut off RateRank

Securities (Ri-Rf)

(Ri-Rf)*ei2

i2/ei2 Cumulative(a)

Cumulative(b)

c

1 YUKEN INDIA LTD 34.01637

0.016948

0.000498

0.016948 0.000498 0.36537

2 FEDERAL BANKLTD

19.02513

0.013219

0.00069

0.030168 0.013718 0.50613


13.55688

0.014987

0.001105

0.045155 0.028705 0.60536

4 J.B.CHEMICALS &PHARMACEUTICA

LS LTD

13.0370

0.04492 0.003445

0.090077 0.073627 0.75369


10.83619

0.025068

0.002313

0.115145 0.098696 0.79640


10.1063

0.006403

0.000633

0.12154 0.105099 0.80503


5.584313

0.075535

0.01352

0.197085 0.180635 0.87004

8 CORPORATIONBANK

4.91805

0.050701

0.010309

0.247786 0.231336 0.89381

9 SUNPHARMACEUTICAL INDUSTRIES

LTD

3.215925

0.081698

0.025404

0.3294 0.313035 0.91798

10 SPICE ISLANDS 2.9051 0.02826 0.0097 0.357752 0.3413026 0.92397

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APPARELS LTD 00 7 30

11 HDFC BANK LTD 2.543793

0.16175 0.063587

0.519506 0.503056 0.94637

12 TATA CHEMICALSLTD

2.120257

0.037303

0.017593

0.556810 0.540360 0.94978

13 STATE BANK OFINDIA

2.083142

0.05390 0.025877

0.610717 0.594267 0.95401

14 ING VYSYA BANKLTD

1.924639

0.037940

0.019712

0.64865 0.632207 0.95658

15 CIPLA LTD 1.165479

0.045505

0.039044

0.694162 0.677712 0.95931

16 ALFA LAVALINDIA LTD

0.683976

0.005007

0.007321

0.699170 0.682720 0.95959

17 EXELONINFRASTRUCTURE LTD

0.201094

0.003377

0.016797

0.702548 0.686098 0.95978


-0.4009

5

-0.00166

5

0.004152

0.700883 0.684433 0.95969

19 DLF LTD -0.7384 -

0.068525

0.0927

98

0.632358 0.615908 0.95552

20 PUNJ LLOYD LTD -1.6986

3

-0.16513

0

0.097213

0.467227 0.450777 0.94073

21 C & CCONSTRUCTIONSLTD

-1.7102

4

-0.03768

7

0.022036

0.429540 0.413090 0.93586

22 CONSOLIDATEDCONSTRUCTIONCONSORTIUMLTD

-3.5823

7

-0.02574

6

0.007187

0.403793 0.387343 0.93205

23 KULKARNIPOWER & TOOLSLTD

-7.4329

4

-0.00277

3

0.000373

0.401020.384570 0.93161


-11.759

7

-0.03241

5

0.002756

0.368604 0.352155 0.92604

25 GUJARATNARMADAVALLEYFERTILIZERSCOMPANY

-45.032

5

-0.00129

3

2.87207E

0.367311 0.350861 0.92580

(C)Arrival of Portfolio

Calculation ofZi

Rank

Securities ei Ri-Rf/

Zi

1 YUKEN INDIA LTD 0.2381 113.78

57

34.01637

97

0.069

2 FEDERAL BANK LTD 0.2586 96.239 19.02513 0.049

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5 53


0.2593 60.8184

13.5568839

0.054

4 J.B.CHEMICALS &PHARMACEUTICALSLTD

0.6021 105.2102

13.037037

0.069

5 BHARAT FERTILIZERINDUSRIES LTD

0.8327 299.7276

10.8361955

0.027

6 JUPITER BIOSCIENCELTD

-0.2661 111.7584

10.106351

0.022


1.5644 180.9305

5.58431347

0.04

8 CORPORATION BANK 0.7761 58.4261

4.9180518

0.053

9 SUNPHARMACEUTICAL

INDUSTRIES LTD

0.9494 35.4807

3.21592585

0.06


1.8135 337.9929

2.90510063

0.01

11 HDFC BANK LTD 1.1657 21.3698

2.54379343

0.086

12 TATA CHEMICALS LTD 0.9621 52.6113

2.12025777

0.021

13 STATE BANK OF INDIA 1.0055 39.0695

2.08314272

0.03

14 ING VYSYA BANK LTD 1.1717 69.6436

1.92463941

0.016

15 CIPLA LTD 0.8424 18.1752

1.16547958

0.01

Calculation of Zi YUKEN INDIA LTD

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i Ri Rf *i ei

Zi = 0.2381 34.01 0.9593

113.78

Zi =0.069172894

Calculation of Zi FEDERL BANK LTD

Zi = 0.2586 19.025-0.9593

96.23

Zi = 0.048543686

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Calculation ofXi

Rank Securities Zi Xi

1 YUKEN INDIA LTD 0.069 11.23

2 FEDERAL BANK LTD 0.049 7.89

3 TORRENT PHARMACEUTICAL LTD 0.054 8.73

4 J.B.CHEMICALS &PHARMACEUTICALS LTD

0.069 11.23

5 BHARAT FERTILIZER INDUSRIES LTD 0.027 4.46

6 JUPITER BIOSCIENCE LTD 0.022 3.81

7 GEI INDUSTRIES SYSTEMS LTD 0.04 6.5

8 CORPORATION BANK 0.053 8.54

9 SUN PHARMACEUTICAL INDUSTRIESLTD

0.06 9.81

10 SPICE ISLANDS APPARELS LTD 0.01 1.7

11 HDFC BANK LTD 0.086 14.04

12 TATA CHEMICALS LTD 0.021 3.45

13 STATE BANK OF INDIA 0.03 4.7

14 ING VYSYA BANK LTD 0.016 2.63

15 CIPLA LTD 0.01 1.55

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Calculation of xi YUKEN INDIA LTD

Zi

i Zi

xi = 0.069172894 0.615542859

Xi = 11.2377 %

Calculation of xi FEDERL BANK LTD

xi = 0.048543686 0.615542859

Xi = 7.8863 %

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Conclusion

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Has give negative return in Jan. and Feb., but they give

positive return in march. Some Companies give return not

according to market return.

And especially this project gives you detailed idea about the

Banking, Fertilizer and chemical, pharmaceutical sector so

those who want to invest their money into this sector for that

this is very helpful study.

Infrastructure sectors not given proper result in this year so

in future suggestion to not invest in Infrastructure sectors. It

sector has given negative return in this year. Sharp model

gives idea how to select securities for optimal portfolio. Here,

we construct & analyze Portfolio of five Sectors but thats not

enough, we have to also see the performance of selected

securities.

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Bibliography

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Bibliography

Magazine :

Capital Market

Web-sites :

www.bseindia.com

www.nseindia.com

www.moneycontrol.com

money.rediff.com

Books :Investment Management;

V.K.Bhadla;Gangadharn.
http://www.bseindia.com/http://www.nseindia.com/http://www.moneycontrol.com/http://www.bseindia.com/http://www.nseindia.com/http://www.moneycontrol.com/

Documents

Jagadish Project Part 2