Karvy Stock Broking

PART-A
INDUSTRY PROFILE
STOCK EXCHANGE IN INDIA
The emergence of stock market can be traced back to 1830. In Bombay, business
passed in the shares of banks like the commercial bank, the chartered mercantile bank, the
chartered bank, the oriental bank and the old bank of Bombay and shares of cotton presses.
In Calcutta, Englishman reported the quotations of 4%, 5%, and 6% loans of East India
Company as well as the shares of the bank of Bengal in 1836. This list was further
broadened in 1839 when the Calcutta newspaper printed the quotations of banks like union
bank and Agra bank. It also quoted the prices of business ventures like the Bengal bonded
warehouse, the Docking Company and the storm tug company.
Between 1840 and 1850, only half a dozen brokers existed for the limited business.
But during the share mania of 1860-65, the number of brokers increased considerably. By
1860, the number of brokers was about 60 and during the exciting period of the American
Civil war, their number increased to about 200 to 250. The end of American Civil war
brought disillusionment and many failures and the brokers decreased in number and
prosperity. It was in those troublesome times between 1868 and 1875 that brokers
organized an informal association and finally as recited in the Indenture constituting the
Articles of Association of the Exchange. On or about 9 th day of July,1875, a few native
brokers doing brokerage business in shares and stocks resolved upon forming in Bombay
an association for protecting the character, status and interest of native share and stock
brokers and providing a hall or building for the use of the members of such association.
As a meeting held in the broker hall on the 5th day of February, 1887, it was
resolved to execute a formal deal of association and to constitute the first managing
committee and to appoint the first trustees. Accordingly, the Articles of Association of the
Exchange and the Stock Exchange was formally established in Bombay on 3 rd day of
December, 1887. The Association is now known as The Stock Exchange.
H.K.E.S society S L N college of Engineering Yermarus Camp

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The entrance fee for new member was Re.1 and there were 318 members on the
list, when the exchange was constituted. The numbers of members increased to 333 in
1896, 362 in 1916 and 478 in 1920 and the entrance fee was raised to Rs.5 in 1877,
Rs.1000 in 1896, Rs.2500 in 1916 and Rs. 48,000 in 1920. At present there are 23
recognized stock exchanges with about 6000 stock brokers. Organization structure of
stock exchange varies.
14 stock exchanges are organized as public limited companies, 6 as companies limited by
guarantee and 3 are non-profit voluntary organization. Of the total of 23, only 9 stock
exchanges have been permanent recognition. Others have to seek recognition on annual
basis.
The Stock Market in India comprises of two stock exchanges:
Bombay Stock Exchange (BSE)
National Stock Exchange (NSE)
BSE
The Bombay Stock Exchange (BSE) was established in 1875. The BSE serves as
the most important for companies to raise money. The chief function of the Stock Market
of India is to help raise money as capital for the growth and expansion of various private
and public sector enterprises. Besides, the Stock Market of India provides able assistance
to the individual investors through daily updates on current position of the stocks of the
respective companies that are enlisted in the Stock Index in which the movement of prices
in a section of the market are captured in price indices. The popular acronym for Stock
Index is Sensitive index or sensex. Moreover, the liquidity provided by the exchange
enables the investors to sell securities owned by them easily and quickly. Hence a person,
who is subjected to sudden dearth of funds, can immediately sell his shares for cash in
India Stock Market.
The BSE Sensex, also known as BSE 30 is a widely used market index not only
in India but across Asia. In terms of volume of transactions, it is ranked among the top five
stock exchanges in the world.

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NSE
The National Stock Exchange of India Ltd. (NSE), set up in the year 1993, is today
the largest stock exchange in India and a preferred exchange for trading in equity, debt and
derivatives instruments by investors. NSE has set up a sophisticated electronic trading,
clearing and settlement platform and its infrastructure serves as a role model for the
securities industry. The standards set by NSE in terms of market practices; products and
technology have become industry benchmarks and are being replicated by many other
market participants.
NSE provides a screen-based automated trading system with a high degree of
transparency and equal access to investors irrespective of geographical location. The high
level of information dissemination through the on-line system has helped in integrating
retail investors across the nation.
The exchange has a network in more than 350 cities and its trading members are
connected to the central servers of the exchange in Mumbai through a sophisticated
telecommunication network comprising of over 2500 VSATs.
NSE has around 850 trading members and provides trading in equity shares and
debt securities. Besides this, NSE provides trading in various derivative products such as
index futures, index options, stock futures, stock options and interest rate futures.
Stock Index: A stock index reflects the mood and direction of the overall market. Apart
from being an indicator of the market movements, stock indices also serve as a benchmark
for measuring the performance of fund managers. The innovations in the financial markets
and the modern portfolio theory had redefined the uses of stock indices for instance the
advent of index funds. Stock indices are rarely static; their composition changes so that the
objectives behind the construction of indices are served. Of course the changes might also
be driven by other reasons like mergers and corporate restructuring that make some of the
stocks cease to exist from the market. Although the changes in an index like Nifty are a
regular phenomenon, these actions will have implications for markets in general and index
funds in particular. When a stock is added (deleted) to the Nifty, index funds will try to
include it in their portfolio and these actions may induce buying (selling) pressure and
correspondingly the price level is increased (decreased) and the volume levels of both
types of stocks are increased.
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COMPANY PROFILE
A. Background And Inception of Company
Karvy, is a premier integrated financial services provider, and ranked among the top
five in the country in all its business segments, services over 16 million individual
investors in various capacities, and provides investor services to over 300 corporate,
comprising the who is who of Corporate India. Karvy covers the entire spectrum of
financial services such as Stock broking, Depository Participants, Distribution of financial
products - mutual funds, bonds, fixed deposit, equities, Insurance Broking, Commodities
Broking, Personal Finance Advisory Services, Merchant Banking & Corporate Finance,
placement of equity, IPOs, among others. Karvy has a professional management team and
ranks among the best in technology, operations and research of various industrial
segments.
The birth of Karvy was on a modest scale in 1981. It began with the vision and
enterprise of a small group of practicing Chartered Accountants who founded the flagship
company Karvy Consultants Limited. It started with consulting and financial accounting
automation, and carved inroads into the field of registry and share accounting by 1985.
Since then, they have utilized their experience and superlative expertise to go from
strength to strengthto better their services, to provide new ones, to innovate, diversify
and in the process, evolved Karvy as one of Indias premier integrated financial service
enterprise.
Thus over the last 28 years Karvy has traveled the success route, towards building a
reputation as an integrated financial services provider, offering a wide spectrum of
services. And they have made this journey by taking the route of quality service, path
breaking innovations in service, versatility in service and finallytotality in service.
Our highly qualified manpower, cutting-edge technology, comprehensive
infrastructure and total customer-focus has secured for us the position of an emerging
financial services giant enjoying the confidence and support of an enviable clientele across
diverse fields in the financial world.

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B.Nature of Business Carried

Karvy is a stock Broking Company that deals in shares. Apart from security broking
Karvy is in to Mutual Fund & Demat, Insurance Service. It offers a wide range of financial
services in order to meet different individuals financial planning. In the present scenario
the service industry has given an utmost importance of doing a particular task at a fastest
time in order to satisfy the customer and to attract new customer.
C. Vision of Karvy
To cater to the unique needs and requirements of the mass affluent by providing
complete financial solutions and thereby enabling them to their dreams into reality.
Mission of Karvy
Karvys mission statement is To Bring Industry, Finance and People together.
Karvy is work as intermediary between industry and people. Karvy work as investment
advisor and helps to people to invest their money same way karvy helps industry in
achieving finance from people by issuing shares, debentures, bonds, mutual funds, fixed
deposits etc.
Company mission statement is clear and thoughtful which guide geographically dispersed
employees to work independently yet collectively towards achieving the organizations
goals.
Quality policy of Karvy

To achieve and retain leadership, Karvy shall aim for complete customer satisfaction,
by combining its human and technological resources, to provide superior quality financial
services. In the process, Karvy will strive to exceed Customer's expectations.
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Quality Objectives
As per the Quality Policy, Karvy will:
Build in-house processes that will ensure transparent and harmonious relationships with
its clients and investors to provide high quality of services.
Establish a partner relationship with its investor service agents and vendors that will
help in keeping up its commitments to the customers.
Provide high quality of work life for all its employees and equip them with adequate
knowledge & skills so as to respond to customer's needs.
Continue to uphold the values of honesty & integrity and strive to establish
unparalleled standards in business ethics.
Use state-of-the art information technology in developing new and innovative financial
products and services to meet the changing needs of investors and clients.
Strive to be a reliable source of value-added financial products and services and
constantly guide the individuals and institutions in making a judicious choice of same.
Strive to keep all stake-holders (shareholders, clients, investors, employees, suppliers
and regulatory authorities) proud and satisfied.
D. Products and service profile

KARVY CONSULTANTS LIMITED
As the flagship company of the Karvy Group, Karvy
Consultants Limited has always remained at the helm of
organizational affairs, pioneering business policies, work ethic and channels of progress.
Having emerged as a leader in the registry business, the first of the businesses that
they ventured into, they have now transferred this business into a joint venture with
Computershare Limited of Australia, the worlds largest registrar. With the advent of
depositories in the Indian capital market and the relationships that they have created in the
registry business, they believe that they were best positioned to venture into this activity as
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a Depository Participant. They were one of the early entrants registered as Depository
Participant with NSDL (National Securities Depository Limited), the first Depository in
the country and then with CDSL (Central Depository Services Limited). Today, they
service over
6 lakhs customer accounts in this business spread across over 250
cities/towns in India and are ranked amongst the largest Depository Participants in the
country. With a growing secondary market presence, they have transferred this business to
Karvy Stock Broking Limited (KSBL), their associate and a member of NSE, BSE and
HSE.
KARVY STOCK BROKING LIMITED

Karvy Stock Broking Limited, one of the
cornerstones of the Karvy edifice, flows freely towards
attaining diverse goals of the customer through varied services. Helping the customer
create waves in his portfolio and empowering the investor completely is the ultimate goal.
Member - National Stock Exchange (NSE), the Bombay Stock Exchange (BSE), and the
Hyderabad Stock Exchange (HSE).
Stock Broking Services

It is an undisputed fact that the stock market is unpredictable and yet enjoys a high
success rate as a wealth management and wealth accumulation option. The difference
between unpredictability and a safety anchor in the market is provided by in-depth
knowledge of market functioning and changing trends, planning with foresight and
choosing options with care. This is what they provide in their Stock Broking services.
They offer services that are beyond just a medium for buying and selling stocks
and shares. Instead they provide services which are multi dimensional and multi-focused
in their scope.
They offer trading on a vast platform; National Stock Exchange, Bombay Stock
Exchange and Hyderabad Stock Exchange. More importantly, they make trading safe to
the maximum possible extent, by accounting for several risk factors and planning
accordingly. They are assisted in this task by their in-depth research, constant feedback
and sound advisory facilities. Their highly skilled research team, comprising of technical

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analysts as well as fundamental specialists, secure result-oriented information on market

trends, market analysis and market predictions.
This crucial information is given as a constant feedback to their customers, through
daily reports delivered thrice daily; The Pre-session Report, where market scenario for the
day is predicted, The Mid-session Report, timed to arrive during lunch break, where the
market forecast for the rest of the day is given and The Post-session Report, the final
report for the day, where the market and the report itself is reviewed.
To add to this repository of information, they publish a monthly magazine The
Finapolis which analyzes the latest stock market trends and takes a close look at the
various investment options, and products available in the market, while a weekly report,
called Karvy Bazaar Baatein, keeps clients more informed on the immediate trends in
the stock market. In addition, their specific industry reports give comprehensive
information on various industries. Besides this, they also offer special portfolio analysis
packages that provide daily technical advice on scripts for successful portfolio
management and provide customized advisory services to help you make the right
financial moves that are specifically suited to their portfolio.
Stock Broking services are widely networked across India, with the number of
trading terminals providing retail stock broking facilities. Its services have increasingly
offered customer oriented convenience, which they provide to a spectrum of investors,
high-net worth or otherwise, with equal dedication and competence.
But true to their spirit, this success is not their final destination, but just a platform
to launch further enhanced quality services to provide you the latest in convenient,
customer-friendly stock management.
Over the years Karvy have ensured that the trust of their customers is their biggest
returns. Factors such as their success in the Electronic custody business has helped build
on their tradition of trust even more. Consequentially their retail client base expanded very
fast.
To empower the investor further they have made serious efforts to ensure that their
research calls are disseminated systematically to all their stock broking clients through
various delivery channels like email, chat, SMS, phone calls etc.
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Their foray into commodities broking has been path breaking and they are in the
process of converting existing traders in commodities into the more organized mainstream
of trading in commodity futures, both as a trading and risk hedging mechanism.
In the future, their focus will be on the emerging businesses and to meet this
objective, they have enhanced their manpower and revitalized their knowledge base with
enhances focus on Futures and Options as well as the commodities business.
Depository Participants
The onset of the technology revolution in financial services Industry saw the
emergence of Karvy as an electronic custodian registered with National Securities
Depository Ltd (NSDL) and Central Securities Depository Ltd (CSDL) in 1998. Karvy set
standards enabling further comfort to the investor by promoting paperless trading across
the country and emerged as the top 3 Depository Participants in the country in terms of
customer serviced.
Offering a wide trading platform with a dual membership at both NSDL and
CDSL, they are a powerful medium for trading and settlement of dematerialized shares.
They have established live DPMs, Internet access to accounts and an easier transaction
process in order to offer more convenience to individual and corporate investors. A team
of professional and the latest technological expertise allocated exclusively to their demat
division including technological enhancements like SPEED; make their response time
quick and their delivery impeccable. A wide national network makes their efficiencies
accessible to all.
Distribution of Financial Products

The paradigm shift from pure selling to knowledge based selling drives the
business today. With their wide portfolio offerings, they occupy all segments in the retail
financial services industry.
A 1600 team of highly qualified and dedicated professionals drawn from the best
of academic and professional backgrounds are committed to maintaining high levels of
client service delivery. This has propelled us to a position among the top distributors for
equity and debt issues with an estimated market share of 15% in terms of applications
mobilized, besides being established as the leading procurer in all public issues.
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To further tap the immense growth potential in the capital markets they enhanced
the scope of their retail brand, Karvy the Finapolis, thereby providing planning and
advisory services to the mass affluent. Here they understand the customer needs and
lifestyle in the context of present earnings and provide adequate advisory services that will
necessarily help in creating wealth. The edge that they have over competition is their
portfolio of offerings and their professional expertise. The investment planning for each
customer is done with an unbiased attitude so that the service is truly customized.
Their monthly magazine, Finapolis, provides up-dated market information on
market trends, investment options, opinions etc. Thus empowering the investor to base
every financial move on rational thought and prudent analysis and embark on the path to
wealth creation.
Advisory Services
Under their retail brand Karvy the Finapolis', they deliver advisory services to a
cross-section of customers. The service is backed by a team of dedicated and expert
professionals with varied experience and background in handling investment portfolios.
They are continually engaged in designing the right investment portfolio for each
customer according to individual needs and budget considerations with a comprehensive
support system that focuses on trading customers' portfolios and providing valuable inputs,
monitoring and managing the portfolio through varied technological initiatives. This is
made possible by the expertise they have gained in the business over the years. Another
venture towards being investor-friendly is the circulation of a monthly magazine called
Karvy - the Finapolis' covering the latest of market news, trends, investment schemes and
research-based opinions from experts in various financial fields.
Private Client Group

This specialized division was set up to cater to the high net worth individuals and
institutional clients keeping in mind that they require a different kind of financial planning
and management that will augment not just existing finances but their life-style as well.
Here they follow a hard-nosed business approach with the soft touch of dedicated
customer care and personalized attention.

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For this purpose they offer a comprehensive and personalized service that
encompasses planning and protection of finances, planning of business needs and
retirement needs and a host of other services, all provided on a one-to-one basis.
Their research reports have been widely appreciated by this segment. The delivery
and support modules have been fine tuned by giving their clients access to online portfolio
information, constant updates on their portfolios as well as value-added advice on
portfolio churning, sector switches etc. The investment recommendation given by their
research team in the cash market has enjoyed a high success rate.
KARVY INVESTORS SERVICE LIMITED

Merchant Banking:
Recognized as a leading merchant banker in the country, they are registered with
SEBI as a Category I merchant banker. This reputation was built by capitalizing on
opportunities in corporate consolidations, mergers and acquisitions and corporate
restructuring, which have earned us the reputation of a merchant banker. Their quality
professional team and their work-oriented dedication have propelled us to offer valueadded corporate financial services and act as a professional navigator for long term growth
of their clients, who include leading corporate, State Governments, foreign institutional
investors, public and private sector companies and banks, in Indian and global markets.
They have also emerged as a trailblazer in the arena of relationships, both at the
customer and trade levels because of their unshakable integrity, seamless service and
innovative solutions that are tuned to meet varied needs. Their team of committed industry
specialists, having extensive experience in capital markets, further nurtures this
relationship.
Their financial advice and assistance in restructuring, divestitures, acquisitions, demergers, spin-offs, joint ventures, privatization and takeover defense mechanisms have
elevated their relationship with the client to one based on unshakable trust and confidence.
An Investment Banker is total solutions provider as far as any corporate, desirous
of mobilizing capital, is concerned. The services range from investment research to
investor service on the one side and from preparation of offer documents to legal
compliances and post issue monitoring on the other. There exists a long lasting
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relationship between the Issuer Company and the Investment Banker. A "Merchant
Banker" could be defined as "An organization that acts as an intermediary between the
issuers and the ultimate purchasers of securities in the primary security market"
Merchant Banker has been defined under the Securities & Exchange Board of
India (Merchant Bankers) Rules, 1992 as "any person who is engaged in the business of
issue
management either by making arrangements regarding selling, buying or
subscribing to securities as manager, consultant, advisor or rendering corporate advisory

service in relation to such issue management".
Merchant Banking, as a commercial activity, took shape in India through the
management of Public Issues of capital and Loan Syndication. It was originated in 1969
with the setting up of the Merchant Banking Division by ANZ Grind lays Bank. The main
service offered at that time to the corporate enterprises by the merchant banks included the
management of public issues and some aspects of financial consultancy. The early and
mid-seventies witnessed a boom in the growth of merchant banking organizations in the
country with various commercial banks, financial institutions, broker's firms entering into
the field of merchant banking.
KARVY AS AN INVESTMENT BANKER

Karvy is well networked with 200 full-fledged branches and 350 Investor Service
Centers with a workforce of over 3500 personnel drawn from various disciplines.
Karvy Investor Services Limited, a SEBI registered Merchant Banker is a 100%
subsidiary of Karvy Consultants Limited and is among the top 10 merchant Bankers in
India today. The parent Company i.e. Karvy Consultants Limited was founded by a group
of professionals in 1982 and today it has evolved as integrated financial services company
of repute, offering various financial services to suit every requirement/need of their
customers. By virtue of its access to millions of Indian Shareholders, in addition to
companies, banks and financial institutions, Karvy has in the process built up a positive
reputation with regulatory authorities and other government agencies. Their emphasis on
the quality of the services, they offer, has been instrumental in helping us to attain the
leadership in the financial services sector.

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They have a track record of handling 70 public/rights issues as Merchant Bankers.

During the last two years they have handled the share buyback issues of TTK LIG
Limited, Sirpur Paper Mills Limited, Bhagyanagar Metals Limited, A V Thomas GroupNelliampathy Tea and Produce Company Limited, Chordia Food Products Limited,
Heritage Foods (India) Limited, Titanor Components Ltd, Punjab Communications
Limited, etc. to name a few.
They have also handled/are handling the Rights/Public issues of Dhanalakshmi
Bank, Dhandapani Finance, Moschip, Karur Vysya Bank, Lux Hosiery Industries Ltd, Sah
Petroleums Limited, Paradyne Infotech Limited, Yash Papers Limited, SPL Industries
Limited, Provogue (I) Limited, Tulip IT Services Limited, Gati Limited as lead managers
to name a few. They have also been appointed as advisor to some of the GOI
disinvestments. They have actively marketed bond issues of corporations from the States
of Maharashtra, Karnataka & Gujarat and debt issues of all the Financial Institutions like
IDBI, ICICI, IFCI, REC, PFC, SIDBI, etc.
As an Investment Banker, Karvy provides;
Management of Capital Issues
Management of Buybacks, Takeovers and Delisting offers
Private Placement of Debt and Equity
Mergers and Amalgamations
Loan Syndication
KARVY COMPUTERSHARE PRIVATE LIMITED

Karvy have traversed wide spaces to tie up with the worlds largest transfer agent,
the leading Australian company, Computershare Limited. The company that services more
than 75 million shareholders across 7000 corporate clients and makes its presence felt in
over 12 countries across 5 continents has entered into a 50-50 joint venture with us.
With its management team completely transferred to this new entity, they will aim
to enrich the financial services industry than before. The future holds new arenas of client
servicing and contemporary and relevant technologies as they are geared to deliver better
value and foster bigger investments in the business. The worldwide network of
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Computershare will hold us in good stead as they expect to adopt international standards
in addition to leveraging the best of technologies from around the world.
Excellence has to be the order of the day when two companies with such similar
ideologies of growth, vision and competence, get together.
Mutual Fund Services:

They have attained a position of immense strength as a provider of across-theboard transfer agency services to AMCs, Distributors and Investors.
Nearly 40% of the top-notch AMCs including prestigious clients like Deutsche
AMC and UTI swear by the quality and range of services that they offer. Besides
providing the entire back office processing, they provide the link between various Mutual
Funds and the investor, including services to the distributor, the prime channel in this
operation.
Carrying the limitless' ideology forward, they have explored new dimensions in
every aspect of Mutual Fund servicing right from volume management, cost effective
pricing, delivery in the least turnaround time, efficient back-office and front-office
operations to customized service. They have been with the AMCs every step of the way,
helping them serve their investors better by offering them a diverse and customized range
of services. The first to market' approach that is their anthem has earned us the reputation
of an innovative service provider with a visionary bent of mind.
Their service enhancements such as Karvy Convert', a full-fledged call center, a
top-line website (www.Karvymfs.com), the m-investor' and many more, creating a galaxy
of customer advantages.
Issue Registry:
In their voyage towards becoming the largest transaction-processing house in the
Indian Corporate segment, they have mobilized funds for numerous corporate, Karvy has
emerged as the largest transaction-processing house for the Indian Corporate sector. With
an experience of handling over 700 issues, Karvy today, has the ability to execute
voluminous transactions and hard-core expertise in technology applications have gained us

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the No.1 slot in the business. Karvy is the first Registry Company to receive ISO 9002
certification in India that stands testimony to its stature.
Karvy has the benefit of a good synergy between depositories and registry that
enables faster resolution to related customer queries. Apart from its unique investor
servicing presence in all the phases of a public Issue, it is actively coordinating with both
the main depositories to develop special models to enable the customer to access
depository (NSDL, CDSL) services during an IPO.
Their trust-worthy reputation, competent manpower and high-end technology and
infrastructure are the solid foundations on which their success is built.
Corporate Shareholder Services:

Karvy has been a customer centric company since its inception. Karvy offers a
single platform servicing multiple financial instruments in its bid to offer complete
financial solutions to the varying needs of both corporate and retail investors where an
extensive range of services are provided with great volume-management capability.
Today, Karvy is recognized as a company that can exceed customer expectations
which is the reason for the loyalty of customers towards Karvy for all his financial needs.
An opinion poll commissioned by The Merchant Banker Update and conducted by the
reputed market research agency, MARG revealed that Karvy was considered the Most
Admired in the registrar category among financial services companies.
They have grown from being a pure transaction processing business, to one of
complete shareholder solutions.
E. Area of Operation
Karvy has 575 offices over 375 locations across India and overseas at Dubai and
Newyork. Over 9000 highly qualified people staff karvy.
Karvy ranks among the top player in almost all the fields it operates. Karvy
Computershare Limited is Indias largest Registrar and Transfer Agent with a client base
of nearly 500 blue chip corporate, managing over 2 crores accounts.
Karvy Stock Brokers Limited, member of National Stock Exchange of India and
the Bombay Stock Exchange, ranks among the top 5 stock brokers in India. With over
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6,00,000 active accounts, it ranks among the top 5 Depositary Participant in India,
registered with NSDL and CDSL. Karvy Comrade, Member of NCDEX and MCX ranks
among the top 3 commodity brokers in the country.
Karvy is also among the top Mutual Fund mobilize with over Rs. 5,000 crores under
management.
Has more than 25,000 investors visiting our 575 offices
Publishes / broadcasts at least 50 buy / sell calls
Attends to 10,000+ telephone calls
Mails 25,000 envelopes, containing Annual Reports, dividend cheques / advises,

allotment / refund advises
Executes 150,000+ trades on NSE / BSE
Executes 50,000 debit / credit in the depositary accounts
Advises 3,000+ clients on the investments in mutual funds
F. Ownership Pattern
C. Parthasarathy
Chairman & Managing Director
M. Yugandhar
Managing Director
M S Ramakrishna
Executive Director
K Sridhar
Management Team
V Mahesh
Management Team
V Ganesh
Management Team
S. Gopichanda
Management Team
J. Ramaswami
Management Team
M. S. Manohar
Management Team

Management
Team
Page 16
S
Ganapathy Subramanian
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G. Competitors Information
In current scenario Karvy Stock Broking Limited is a well known field of online
trading. According to customers need KSBL launched different-different products. But
there are many more companies who also consumer focused. They continuously innovate.
So KSBL want ad infinitum leadership place in the market, it must familiar with its
competitors and its product. Few Major competitors are:
1. India bulls
2. Motilal oswal securities
3. Angel Broking
4. Share khan
5. India Info-line
6. Religare Securities
7. ICICI Direct
8. HDFC Securities
G. Infrastructural Facilities
Karvy facility management manages some 980 buildings with an approximate area of
1.9 million square meters for some 30000 work shop and building investment to the
amount of 180 million [approximately 116 million] . They have 700 employees
supervise almost 9000 moves.
H. Achievements and Awards of karvy

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Among the top 5 stock brokers in India (4% of NSE volumes).
India's No. 1 Registrar & Securities Transfer Agents.
Among the to top 3 Depository Participants.
Largest Network of Branches & Business Associates.
ISO 9002 certified operations by DNV.
Among top 10 Investment bankers.
Largest Distributor of Financial Products.
Adjudged as one of the top 50 IT uses in India by MIS Asia.

Karvy Stock Broking Limited Awarded Largest E-Broking House in India.
I. Future Growth and infrastructure

The Company Diversified Growth Equity Top 100 Fund is an open-ended equity
Scheme which seeks to generate capital appreciation. The Schemes portfolio constitutes
equity and equity related securities of the 100 largest listed corporate by market
capitalization, in India. Differentiated stock selection of universal filters at each level
ensures a high quality of portfolio construction in this Scheme. Investment in large cap
companies provides lower volatility than the broader market and better access to cash and
credit reserves increases predictability of future performance.
J. Work Flow Model of karvy

Work flow model:
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The work flow model is used to describe the trading, clearing, and settlement
process of equities trading in the market. It is also known as end to end model which is
given below.
Chapter-2
McKensys 7s frame work
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Strategy
A strategy is a plan of action designed to achieve a particular goal. Strategy refers
to the systematic action and allocation of resources to achieve the companies aim the
integrated vision and direction of the company as well as the manner, which it drives,
articulate, communicates and implements that vision and direction. It can also be defined
as the choice of direction and action that the company adopts to achieve its objectives in a
competitive situation. As per the vision and mission statement of the company, the main
strategy of consortium securities is to gain competitive advantage over the rivals not by
letting the others down but by taking its own standards to a higher level through better
services and customer satisfaction. Their strategic goal is to excel in its service with
integrity, diligence and transparency in satisfying the customers investment needs and to
build itself as the trusted and a world class financial service provider.
System:
The daily activities and procedures that staff members e engage in to get job done.
System comprises of the main system that run the organization like the finance or the
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human resource systems. At consortium securities they use a computerized information

system (CIS) from where all the important data are being collected and then processed
further as per various needs. And the decision making system too is dependent on the CIS
which is usually in the hands of the top management. The management control system at
consortium is all bound by the companys vision and mission statement as well as their
immediate goals and targets. This is taken care of by the responsibility centre at the head
office. While the appraisal and the reward systems are on a merit rating cum experience
basis so that they can encourage and retain the existing employees as well as attract the
most potential employees while recruiting.
So, this as a whole helps consortium to bind the different constituents of the
organization and positions in fact to facilitate the performance of the entire organization in
a coordinated, cohesive and fruitful manner
Structure:
Business needs to be organized in a specific form of shape that is generally
referred as organizational structure.
Organization is structured in a variety of ways, dependent on their objectives and
culture. The structure of the company often dictates the way it operates and performs.
Traditionally, the business have been structured in a hierarchical way with several
divisions and departments, each responsible for a specific task such as human resources
management, production or marketing .many layers of management controlled the
operations, with each answerable to the upper layer of management.
ORGANISATION CHART

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Managing Director
Chief Managing Director
Vice-President Vice-President
Karvy
Stock Broking
Ltd.
Vice-President
Karvy
Consultants
Ltd.
Karvy
Investors Services
Ltd.
Deputy
General
Deputy
General
Deputy
General
Senior
Manager
Senior
Manager
Senior
Manager
Vice-President
Karvy
Securities
Ltd.
Deputy
General
Senior
Manager
Branch Manager
N number of Team Leaders
N number of Executives
Shared values:
Shared values are the core values of the company that are evidenced in the
corporate culture and the general work ethics. The values of EXECUTIVE BRANCH
MANAGER Future and option Depository and D-Mat Currency trading Mutual fund
Commodities trading PRODUCT HEADZONAL HEADREGIONAL HEADCEO and
MD.
Style:
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Style of leadership refers to the manner in which an individual uses his or her
talent, values, knowledge, judgment, and attitudes to lead and relate to others. Style
expresses the persons character. Style is the leadership approaches of top management
and the organizations overall operating approach; also the way in which the organizations
employees present themselves to the outside world, to suppliers and customers. The
company follows a top-down style of management where in the top-level managers would
give instructions and the same is followed the lower levels. However, at consortium they
have a very pleasant and cooperative culture where everyones ideas are respected and
considered. All are participative when it comes to working at the office so as to reach the
targets and meet the organizational goals jointly in the least possible time.
Staff:
Organizations are made up of people who makes the real differences to the success
of the organization in the increasingly knowledge based society. The importance of human
resource as thus got the central position in the strategy of the organization, away from the
traditional model of capital and land.
The people working in KSBL have technical skills that are required for the day to
day operations in the company.
Skills:
Skills deals with the strongest skills, actual skills and competencies of the
employees working for the company and how they are monitored. Skills the ability,
knowledge, undertaking, and judgment to accomplish at ask. Skills may be defined as
what the company does best; the distinctive capabilities and competencies that reside in
the organization. KSBL have variety of skills in carrying out business. The company has
its distinctive competency in providing excellent investment service and known for its
strong and long standing relationship with investors, other companies and its clients. The
company also has potential and proficient, technical and fundamental analysis that helps to
analyze the market carefully and correctly before any investment. The dealers at KSBL are
also well qualified and fully trained. Thus, the skills which are the dominant capabilities
and core competencies possessed by the organization are very much in parallel to
organizational strategy, structure, systems, and the culture.
Chapter-3
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SWOT ANALYSIS OF KARVY STOCK BROCKING LTD.
STRENGHTS
Among the top 5 stock brokers in India (4% of NSE volumes)
Indias No.1 Registrar & securities Transfer Agents
Among top 3 Depository Participants
Largest Network of Branches & Business Associates
ISO 9002 Operation By DNV
Among Top 10 Investment Bankers.
Largest Distributor of Financial Products.
Adjudged as one of the top 50 IT uses in India by MIS Asia.
Fully fledged IT driven operation.
WEAKNESS
Insurance selling is not up to expectation in Karnataka state.
It is fully depended on brokerage there is risk of security
It is not a listed company.
OPPRTUNITIES
It is having opportunity to start online trading by clients like ICICI direct.com,
Share khan.
It is having opportunity to expand branches to abroad.
It can start funding services like Geojit financial services.
Karvy can start its own mutual fund under its own brand name.
THREATS
Karvy have to compete with nearly 30 competitors engaged in same field
There are more than 30 other companies (especially prudential ICICI, Kotak,
Standard chartered) doing well, Karvy has come under pressure from these
companies. Karvy has to gear itself to other private giants in this field.
This has put extra pressure on Karvy to take steps to retain the share in the market.

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Due to fluctuation in market clients are losing their faith in stock market. Moreover
it has to struggle to retain its share in market.
5. Analysis of Financial Statement

The company balance sheet is showing increase in share capital year by year. During
2010 share capital was 33,827.10 lacs and 2011 was 34,864.56 lacs increased to 2012 is
35,248.15 lacs.
The company has purchased new assets in the year 2011 but during year there is a net
fall in assets.
During 2011 there is reduction in the profit but during current year company has
increased its profit potential.
Overall the financial condition of the company is favorable and economical.
6. Learning experience
With the help of the college requisition letter I approached many companies and I
got permission in Karvy Stock Broking Limited. This opportunity makes me to learn from
the company and people. The staffs at KSBL are very friendly and with their help and
cooperation I could complete the project successfully.
I understood the stock market and how the orders are placed, how the trading is
done and how the brokers receive the order from the clients and execute the order, how to
modify order, how to cancel the order etc. KSBL is a stock broking company and I
practiced and learned how the trading is done online using the various softwares, how the
records of the clients are maintained etc.
Part-B
General Introduction
Statement of the problem:
To analyze the performance of Nifty 50 & to understand the performance of its top 10
companies.
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Objectives of the study

To Study the organization of Karvy financial services ltd.
To know about the operations of Stock market.
To understand the performance of Nifty 50 index.
To understand the working of Nifty 50.
Scope of the study:

The Study covers:
The organization profile of Karvy financial securities Ltd. .
Study of Nifty 50.
The Study helps the investors in understanding the performance of Nifty 50.
The study also helps in understanding the performance of top 10 companies of
Nifty 50.
Methodology:
Primary & secondary information & Analysis are made by getting responses &
through the suggestions of brokers, internal guide & external guide.
Limitations of the study:

Time Constraint
Busy work Schedule of department managers.
As stock market is a broader phenomenon so it is very difficult to cover all the
aspects in a single report.
The information is relating to past 20 years only.
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INTRODUCTION TO NIFTY 50
S&P CNX Nifty
S&P CNX Nifty is a well diversified 50 stock index accounting for 24 sectors of the
economy. It is used for a variety of purposes such as benchmarking fund portfolios, index
based derivatives and index funds.
S&P CNX Nifty is owned and managed by India Index Services and Products Ltd.
(IISL), which is a joint venture between NSE and CRISIL. IISL is India's first specialized
company focused upon the index as a core product. IISL has Marketing and licensing
agreement with standard & poors (S&P), who the world leaders are in index services.
The main features of the NSE S&P CNX Nifty 50 index are:
The total traded value for the last six months of all Nifty stocks is approximately
67.68% of the traded value of all stocks on the NSE.
Nifty stocks represent about 67.34% of the total market capitalization as on

September 31, 2012.
Impact cost of the S&P CNX Nifty for a portfolio size of Rs.2 crore is 0.16%
S&P CNX Nifty is professionally maintained and is ideal for derivatives trading
What Does Nifty 50 Mean? (Nifty 50 of USA)
The 50 stocks that were most favored by institutional investors in the 1960s and
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1970s. Companies in this group were usually characterized by consistent earnings growth
and high P/E ratios.
Investopedia explains Nifty 50 of U.S.A.

The nifty-50 stocks got their notoriety in the bull markets of the 1960s and early
1970s. They became known as "one-decision" stocks because investors were told they
could buy and hold forever.
Examples of nifty-50 stocks included General Electric, Coca-Cola, and IBM.
However, part of this list included companies that have been troubled in the last decade,
such as Xerox and Polaroid.
About Nifty 50
The S&P CNX Nifty (Nifty 50 or simply Nifty) is a composite of the top 50 stocks
listed on the National Stock Exchange (NSE), representing 24 different sectors of the
economy. It is a simplified tool that helps investors and ordinary people alike, to
understand what is happening in the stock market and by extension, the economy. If the
Nifty Index performs well, it is a signal that companies in India are performing well and
consequently that the country is doing well.
An upbeat economy is usually reflected in a strong performance of the Nifty Index. A
rising index is also indicative that the investors are gung-ho about the future. The Nifty
Index is based upon solid economic research. It is internationally respected and recognized
as a pioneering effort in providing simpler understanding of stock market complexities.
Nifty is the flagship index of NSE, the 3rd largest stock exchange in the world in
terms of number of transactions (Stock Futures).
Ownership and Management

Nifty was developed by the economists Ajay Shah and Susan Thomas, then at IGIDR.
Later on, it came to be owned and managed by India Index Services and Products Ltd.
(IISL), which is a joint venture between NSE and CRISIL. IISL is India's first specialized

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company focused upon the index as a core product. IISL have a consulting and licensing
agreement with Standard & Poor's (who are world leaders in index services).
CNX stands for CRISIL NSE Indices. CNX ensures common branding of indices, to
reflect the identities of both the promoters, i.e. NSE and CRISIL. Thus, 'C' stands for
CRISIL, 'N' stands for NSE and X stands for Exchange or Index. The S&P prefix belongs
to the US-based Standard & Poor's Financial Information Services.
It is calculated as a weighted average, so changes in the share price of larger
companies have more effect. The base is defined as 1000 at the price level of November 3,
1995.
Criteria for inclusion of Stock in Nifty50
Average market capitalization of Rs.5, 000 million or more during the last six
months.
Liquidity: Cost of transaction (impact cost) of less than 0.75% for more than 90%
of trades, over six months.
At least 12% floating stock (not held by promoters of the company or their
associates).
The Organization
The National Stock Exchange of India Limited has genesis in the report of the High
Powered Study Group on Establishment of New Stock Exchanges, which recommended
promotion of a National Stock Exchange by financial institutions (FIs) to provide access to
investors from all across the country on an equal footing. Based on the recommendations,
NSE was promoted by leading Financial Institutions at the behest of the Government of
India and was incorporated in November 1992 as a tax-paying company unlike other stock
exchange in the country.
On its recognition as a stock exchange under the Securities Contracts (Regulation)
Act, 1956 in April 1993, NSE commenced operations in the Wholesale Debt Market
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(WDM) segment in June 1994. The Capital Market (Equities) segment commenced
operations in November 1994 and operations in Derivatives segment commenced in June
2000.
The S&P CNX Nifty Index Futures

The NSE Nifty futures contract is a forward contract, which is traded on the National
Stock Exchange (NSE) on June 12, 2000. The index futures contracts are based on the
popular market benchmark S&P CNX Nifty index.
Contract Specifications
Security descriptor
The security descriptor for the S&P CNX Nifty futures contracts is:
Market type: N
Instrument Type: FUTIDX
Underlying: NIFTY
Expiry date: Date of contract expiry
Instrument type represents the instrument i.e. Futures on Index.
Underlying symbol denotes the underlying index which is S&P CNX Nifty
Expiry date identifies the date of expiry of the contract
Underlying Instrument
The underlying index is S&P CNX NIFTY.
Trading cycle
S&P CNX Nifty futures contracts have a maximum of 3-month trading cycle - the
near month (one), the next month (two) and the far month (three). A new contract is
introduced on the trading day following the expiry of the near month contract. The new
contract will be introduced for three month duration. This way, at any point in time, there
will be 3 contracts available for trading in the market i.e., one near month, one mid month
and one far month duration respectively.

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Expiry day
S&P CNX Nifty futures contracts expire on the last Thursday of the expiry month. If the
last Thursday is a trading holiday, the contracts expire on the previous trading day.
Trading Parameters
Contract size
the permitted lot size of S&P CNX Nifty futures contracts is 200 and multiples thereof.
Price steps
the price step in respect of S&P CNX Nifty futures contracts is Re.0.05.
Base Prices
Base price of S&P CNX Nifty futures contracts on the first day of trading would be
theoretical futures price. The base price of the contracts on subsequent trading days would
be the daily settlement price of the futures contracts.
Price bands
There are no day minimum/maximum price ranges applicable for S&P CNX Nifty
futures contracts. However, in order to prevent erroneous order entry by trading members,
operating ranges are kept at + 10 %. In respect of orders which have come under price
freeze, members would be required to confirm to the Exchange that there is no inadvertent
error in the order entry and that the order is genuine. On such confirmation the Exchange
may
approve such order.
Quantity freeze
Quantity Freeze for S&P CNX Nifty futures contracts would be 20,000 units or
greater. In respect of orders which have come under quantity freeze, members would be
required to confirm to the Exchange that there is no inadvertent error in the order entry
and that the order is genuine. On such confirmation, the Exchange may approve such
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order. However, in exceptional cases, the Exchange may, at its discretion, not allow the
orders that have come under quantity freeze for execution for any reason whatsoever
including nonavailability of turnover / exposure limits.
Order type/Order book/Order attribute

Regular lot order
Stop loss order
Immediate or cancel
Good till day
Good till cancelled
Good till date
Spread order
Good Till Cancelled (GTC) orders are cancelled at the end of the period of 7 calendar days
from the date of entering an order
Why Trade the NSE Nifty Index?

You can trade the 'entire stock market' instead of individual securities.
Index Futures are:
- highly liquid
- large intra-day price swings
- high leverage
- low initial capital requirement
- lower risk than buying and holding stocks
- just as easy to trade the short side as the long side
- only have to study one index instead of 100's of stocks
Index futures are settled in cash and therefore all problems related to bad
delivery, forged, fake certificates, etc can be avoided. Since the index consists of many
securities (50 securities) it is very difficult to manipulate the index.
You are required to pay a small fraction of the value of the total contract as margins.
This means that trading in Stock Index Futures is a leveraged activity since the investor is
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able to control the total value of the contract with a relatively small amount of margin.
Data Analysis & Interpretation

Analysis & Interpretations of nifty 50s performance
Nifty 50 One of the Greatest Wealth Creator
Equity is the one of the most exotic asset class, it has given about 21% average
annualized return since 1990, investment in equity has seen sea change in recent decade.
Emergence of business channel sprayed the awareness about equity among the investor
community ,earlier to buy equity was not so easy as it is now, today market is in pockets
of investor in terms of access, technology has provided the multiple way to access the
market through internet, through cell phone and WAP , now a days various expert advices
trading and investment tips are available with the investors, Many fund house are running
their mutual fund and giving good return to their investors and the asset under
management of mutual fund industry is approximately $ 6.7 lakh billion. Reliance capital
is the largest mutual fund whose asset under management is more than one lacks crore
followed by HDFC MF, ICICI Prudential MF, state run UTI Mutual Fund and Birla Sun
Life MF are the five largest fund house of the country. Insurance companies, HNI, FII,
Retail investors are holding significant amount of equities in their portfolio, although the
allocation in equity is less than 5% of the total house hold saving in the country however
in totality it is a huge amount. In recent market selloff where FII has sold 13.1 billion US$
at one way and DII has bought more than 16.2 US$ at the same time in other way.
Identification of investable share is the tuff job even for the market participant and
timing the market is even tougher for the expert, but the fundamental analysis and
technical analysis helps the people to identify the cheap stocks at the right time to park
their investments. But still the question remain same what and how much one should buy?
The main barometer which is index it gives the diversity and credibility of the basket and
also liquid to exit and enter at desired time for the investor.

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NIFTY 50 stocks reflects the appropriate behavior of equity because this is the
broader index composed of 50 blue chips Company of various sector having better
corporate governance, credibility and profitability. Nifty is claimed as the stock of the
nation gives the diversity and reliability. Reshuffling in script is also an important
phenomena because we have observed that time to time the company who hasnt followed
the corporate governance and not adequately performed have shown exit way from the
index, similar incident happened with the Satyam computers after the scam broke out in
the company the script of the company removed from the index and replaced by other
company. The most important characteristics of NIFTY is the diversity it is the basket of
the shares who represents the various sectors like Reliance and ONGC represents the
petrochemical sector, NTPC represents the power sector, ACC represents the cement
sector ,Infosys represent the IT sector and SBI and ICICI bank represents the banking
sectors and so on.
The stocks in NIFTY gets proportionate weightage according to their market
capitalization so if money will allocated to the company who are the component of index
according to their proportion, then the capital appreciation will be similar as the index
fluctuation.

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YEAR
OPEN
CLOSE
GAIN
PT.
1993
785
1042
257
32.73885
3
1994
1246
1994
748
60.0321
02
1995
1071
908
-163
15.21942
1
1996
848
899
51
6.014150
9
1997
972
1079
107
11.00823
0
1998
963
884
-79
0.082035
1999
966
1480
514
53.20910
9
-283
18.30530
4
2000
1546
1263
2001
1371
1059
-312
22.7571
11
2002
1075
1093
18
1.674418
2003
1041
1879
838
80.4995
19
2004
1809
2080
271
14.98065
2
2005
2057
2836
779
37.87068
5
2006
3001
3966
965
32.15594
8
2007
4082
6130
2048
50.17148
4
2008
5137
2959
-2178
42.3982
86
2009
2874
5201
2327
80.9672
92
2010
4882
6134
1252
25.64522
7
Nifty performance
Analysis
Table1: Performance
of Nifty 50

2011
5505
4624
-881
16.00363
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3
2012
5199
5905
706
13.5795
Above table depicts the twenty year equity behavior in Indian context the index
was quoting at 785 at 1993 and when it peaked out in January 2008 it was quoting on
whooping above 6200 which was 689.80 % from the 1993 level .The appreciation is
excluding the dividend payouts from the holding of the share for such a long time. The
gain has outperformed all the asset class around.
However market corrected in between, time to time but they recovered their losses
in coming year. In the above calendar 2009 was the best month in terms of return the year
has given 80.96% of annualized return to the Nifty followed by 80.49% in 2003 and
60.032% in 1994.since 1993, 14 years it has given positive return while 6 years it has
given negative return among them 2008 has given -42.39% followed by -22.75% in
2001.
Performance of Nifty
6000
N
I
F
T
Y
I
N
D
E
X
5137
5000
5505
5199
4882
4082
4000
3000
3001
2874
2057
1809
1546
1371
1246
1075
1071848972963966
1041
1000785
2000
YEARS
Fig: Graphical presentation of Nifty movement on opening basis

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Several events have been priced by the market since 1992, earlier Indian capital
market was in nascent stage and the market infrastructure were poor, it was operating
under very low base and volume, there was the manual trading system in practice,
settlements were in physical form and time taking activity, the unlawful practices were
quite common with the Indian market. After the new economic policy opted by Rao
Manmohan duo the market has seen a revolutionary change in their all dynamics. The
participation of investors has increased after the reform, system became more regulated
after the formation of SEBI, FII became the dominant player in the market, retail and HNI
also became active in on the bourses, household saving started trickling in the equity
market through mutual fund and direct investment. These events bring new confidence and
improved the sentiments in Indian capital market.
In Indian condition equity sparked fear in the minds of investor. In India people in
generally love to see their investment on regular basis. The fluctuation in the market is
mostly hyped by the media channel thats why people feel themselves scary about to
investment in the market. In spite of that the equity has given best return in the longer
horizon most of the household saving finds their way towards fixed income instruments
because liquidity concerns and conservative attitude of the people. Investment psychology
plays very important role to park the saving in the equity, and second most important thing
is risk aversion or risk apatite.
The advent of business channel has created a revolution in the investment world
people getting aware about the fundamental and technicals of the markets and behaving
accordingly.
The financial reforms taken by the government open another gate for money to the
capital market and treasury operation if corporate emergence of HNI and retail investor in
the big way played significant role in the lustrous performance of capital market in India.
Today Indian market has their own legs and wings although they are more
dependent on foreign flow but as the time is running out the dependency is getting lesser.
In the recent downturn in equity market in 2008 the FII has sold more than 13 billion US$
and in the same period more than 16 billion US$ of domestic money get the way in the
market. Indian equity market has slowly and slowly showing sense of stability in their
behavior.
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1993:
Year 1993 was started on good notes. Historical serial bomblast of 12th march 1993
shocked the market and on reaction of it market corrected 19 % in two month i.e. March
and April. The green year for the market here it has given 32.73 % annual return, it was
great time for Indian economy because Manmohan Singh policy was converted into the
performance by that time and the country and the corporate India was in growth track.
There was some profit booking seen in the first two quarter but Nifty came back strongly
in next quarter with significance gain.
1994:
1994 was the year of consolidation after 1993 year of bull run for the market. Main
outcome of the year was the market able to hold their green flag with 60% gain in the
year .in spite of global problems and geopolitical concerns market consolidated their gains
in this year.
1995:
After the two year of Bull Run market corrected in this year due to political
uncertainty in Delhi and poor monsoon given the market an excuse for profit taking and it
corrected -15% in the year. This was the real breather for the market after for year of
strong Bull Run.
1996:
Year started with the cautious note and remained under narrow range in whole year
market closed mere 6.01% down although first half market gone up 23% while final half
of the year surrendered 17%of their gain which was backed by non event year.
1997:
This year was given return of 11% but alternate band of buying and selling were
seen on the screen ,FII flow were sustained followed by better global picture .Positive
budget and growth familiar budget supported the market gain

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1998:
Looming global instability and credit crisis in Asian economy open the selloff in
market. NATO intervention on Yugoslavia Middle East crisis of Israel and Palestine
dampened the sentiments of the markets and market corrected 0.08% in the year.
The subdued interest if FII and cooling of economic activity in the region pull backed the
market this year.
1999:
This was the fourth best year of the Indian capital market with 53% gain in the
year the flavor of NDA government led by Atal Bihari Vajpayee was backed by the market
participant and plenty of optimism created euphoria in the market.
Political stability in the centre and new reforms by the government bring the
positive sentiments in the market
2000:
Gloomy global economy and poor monsoon given the proper reason to selling in
equity market .political instability in the Delhi was another reason that created selloff in
the equity markets. This year market corrected 18% in the year. Ketan Parikh incident was
created panic in the market in November.
2001:
Global jitter especially Asian crises, geopolitical condition in Middle East created
global selloff in the equity markets and India corrected 22% in the year with global peers.
Japanese economy and problem in the Japanese financial system spread wave of
selling in the equity market in the Asia region.
Domestically poor agriculture growth and bad corporate earning added more flavor
in the bad sentiments and market further cooled
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2002:
After the subdued year Indian capital market was mixed in 2002 here alternate
bouts of rise and fall were registered on the screen. Political uncertainty also added the
sentiment and market finally able to registered 1.6% gain in the year and made a good
base for further move which was never imagined that Indian capital market going to
surprise every analyst in coming year.
2003:
This was the phenomenal year for equity market Nifty given 80.49% return in year
among them 70% came in second half of the year. Again market was celebrating the
election year.
Economy was growing at the rate of more than 8% one of the highest among the
growing nations. The corporate earnings were phenomenal. So market given thumbs up
and registered second highest gain in the history.
First half of the year was given only 3%of return but in second half it was given 66%
return.
2004:
Surprise result of Lok Sabha election and strong performance of left parties spread
the negative sentiments in the market.
After the sustain rise market corrected in first half in first quarter 7% second
quarter14% and third quarter13% however fourth quarter was the recovery backed by the
some policy action of P.Chidambaram and Manmohan Singh. The quarter given 14% of
northward movement and annual basis market ended positive with 8%gain.

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2005:
India became the destination of the overseas money yen carry trade created the
opportunity for the Japanese money to trickle in Indian bourses .and this effect was visible
with the 37% annual return in the market.
In spite of the fact that left parties supporting the government they forwarded
banking reform infrastructure spending and a budget that liked by India INC
2006:
Chidambaram effect was still there on Dalal street .Index were making new high
and it was the liquidity driven rally.
Growing economy better corporate number reflected at the screen of the market
and market has given 32% return in the year.FII were the key contributor in the market
they were parking their money in BRIC country .hedge fund became more active in this
year. They were putting their money through the participatory notes. Which were issued
by FII
2007:
Year 2007 was the green carpet for the markets with whooping 50% rally in the
market backed by record FII flow of 17 billion US$ in a single calendar year and
significant amount of retail participation in the market. The best month was the October
with the 16% return while worst month was the February with 9% negative return. The
sentiments were quite positive in this year record number of companies came with their
IPO and they were successful to tap the market.
By this time India became one of the prime destination of investment, many India
dedicated fund were started operating from overseas, tax treaty done with Singapore also
supported the equity market, good amount of Japanese money came in the market and
market rallied on the liquidity.
The GDP growth was at record level of 9.2 and India were about to achieve the
double digit growth.

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2008:
The year 2008 was the worst year and one of the most eventful year of the equity
market not only in India but globally, the ghost of subprime spread their wing across the
globe, credit crisis was the flavor of the season .This event pulled down the equity market
globally, equity markets all around the globe corrected more than 60% taking the global
link , Indian market has also corrected record 42% in the year .The investors money
significantly eroded in the crash .In the entire calendar year only July and December was
the month that has given the positive return and rest of the months ended into the red.
Growing crude price, inflation and credit crisis was the flavor of the season
2009:
The year started on the subdued notes however post march market surprise the
investor with their northward journey FII pumped significant money in the market and
market gained 80.96% by June election result created great euphoria in the market and in
the history of Indian capital market. Indices had hit the 20% circuit on Monday, May 18,
after the UPA (United Progressive Alliance) swept the Lok Sabha polls. This was the
repeat of the history .The day's percentage rise was the biggest since a 20.8 percent jump
on March 2, 1992 when Singh, who was then finance minister, unveiled reforms that
opened the economy to foreigners.
2010:
The prevailing economic conditions, both domestic and global, suggest the Indian
stock market is poised to continue to rally in 2010 even though US and European Markets
have yet to recover from recession effect. The phase wise withdrawal of financial support
given by Indian government to the market. So far, the recovery in India has been driven by
domestic consumption and government expenditure. However, corporate investment is
expected to surge in 2010 due to the strong GDP growth which will increase capacity
utilisation.

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2011:
Market experts believe that there was nothing too positive in the budget which in turn
disappointed the investors who were expecting one more dream budget from P
Chidambaram. It was the worst budget day performance for markets in the last four years
as the finance minister's budget fell way short of market expectations. To make matters
worse, amendments made in the direct tax avoidance agreement further spooked the
investors on the expiry day.
2012:
There may be all round negativity but the stock story led by Nifty has something
positive to offer at the end of six months this calendar. Nifty, the broader stock market
index, has grown about 15% during January to June 2012 period. Next six months look
good from market perspective and Nifty can climb to levels of 5800 -6000 by the end of
2012.With Manmohan Singh at the helm of finance ministry, government once again
appears confident.ends.
Percentage Changes Of Nifty

100
80
60
40
20
0
-20
-40
-60

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NIFTY-FIFTY
Present share list of NIFTY-FIFTY
1
ABB LTD.
ACC LIMITED
AMBUJA CEMENTS LTD
AXIS BANK LIMITED
BHARTI AIRTEL LIMITED
BHEL
BHARAT PETROLEUM CORP LT
CAIRN INDIA LIMITED
CIPLA LTD
10
DLF LIMITED
11
GAIL (INDIA) LTD
12
GRASIM INDUSTRIES LTD
13
HCL TECHNOLOGIES LTD
14
HDFC BANK LTD
15
HDFC LTD
16
HERO MOTOCORP LTD
17
HINDALCO INDUSTRIES LTD
18
HINDUSTAN UNILEVER LTD.
19
ICICI BANK LTD.
20
IDEA CELLULAR LIMITED
21
INFOSYS TECHNOLOGIES LTD
22
ITC LTD

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23
JINDAL STEEL & POWER LTD
24
LARSEN & TOUBRO LTD.
49
UNITECH LTD
25
MARUTI SUZUKI INDIA LTD.
50
WIPRO LTD
26
MAHINDRA & MAHINDRA LTD
27
NATIONAL ALUMINIUM CO LTD
28
NTPC LTD
29
OIL AND NATURAL GAS CORP.
30
PUNJAB NATIONAL BANK
31
POWER GRID CORP. LTD.
32
RANBAXY LABS LTD
33
RELIANCE COMMUNICATIONS L
34
RELIANCE CAPITAL LTD
35
RELIANCE INDUSTRIES LTD
36
RELIANCE INFRASTRUCTU LTD
37
RELIANCE POWER LTD.
38
STEEL AUTHORITY OF INDIA
39
STATE BANK OF INDIA
40
SIEMENS LTD
41
STERLITE INDS (IND) LTD
42
SUN PHARMACEUTICALS IND.
43
SUZLON ENERGY LIMITED
44
TATA COMMUNICATIONS LTD
45
TATA MOTORS LIMITED

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SECURITY
Market Capitalization
in crores
WEIGHTAGE
RELIANCE
ONGC
NTPC
BHARTIARTL
INFOSYSTCH
SBIN
BHEL
ITC
TCS
HINDUNILVR
2,24,408
54,718
33,405
50,414
1,77,272
82,795
50,005
1,05,748
56,153
35,249
10.95%
2.67%
1.63%
2.46%
8.65%
4.04%
2.44%
5.16%
2.74%
1.72%
46
TATA POWER
CO LTD
47
TATA STEEL
LIMITED
48
TATA
CONSULTANCY
SERV LT
Niftys Top 10
companies
with their market capitalization:

Market capitalization according to nifty in 2012
Market capitalization according to nifty in 2011

SECURITY
Market Capitalization
in crores
WEIGHTAGE
RELIANCE
INFOSYSTCH
LT
ICICIBANK
1,84,504
1,46,179.72
1,27,747.5
1,24,645.13
10.11 %
8.01 %
7%
6.83%

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HDFC
ITC
HDFCBANK
SBIN
ONGC
BHARTIARTL
93,255.7
91,065.77
78,473.51
77,196
53,836.4
52,923.9
5.11 %
4.99 %
4.3 %
4.23 %
2.95 %
2.9 %
RELIANCE INDUSTRIES LIMITED (NSE: RELIANCE) is India's largest

private sector conglomerate (by market value) and second largest in the world, with an
annual turnover of US$ 66 billion and During the fiscal year ending in March 2010
making it one of India's private sector Fortune Global 500 companies, being ranked at
206th position (2010). It was founded by the Indian industrialist Dhirubhai Ambani in
1966. Ambani has been a pioneer in introducing financial instruments like fully
convertible debentures to the Indian stock markets. Ambani was one of the first
entrepreneurs to draw retail investors to the stock markets. Critics allege that the rise of
Reliance Industries to the top slot in terms of market capitalization is largely due to
Dhirubhai's ability to manipulate the levers of a controlled economy to his advantage.
Though the company's oil-related operations form the core of its business, it has
diversified its operations in recent years. After severe differences between the founder's
two sons, Mukesh Ambani and Anil Ambani, the group was divided between them in

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2006. In September 2008, Reliance Industries was the only Indian firm featured in the
Forbes's list of "world's 100 most respected companies".
The Group's activities span exploration and production of oil and gas, petroleum refining
and marketing, petrochemicals (polyester, fiber intermediates, plastics and chemicals),
textiles, retail and special economic zones.
Reliance enjoys global leadership in its businesses, being the largest polyester yarn
and fibre producer in the world and among the top five to ten producers in the world in
major petrochemical products.
Change in weightage of Reliance

11.2
11
10.95
10.8
10.6
10.4
10.2
10
10.11
9.8
9.6
2011
2012
The graph shows the weight of Reliance in nifty in 2011 and 2012. Its been
observed that Reliance Nifty weight in nifty over 2 years is above 10%. Even though there
has been a change in the way of calculation of Market Capitalization in Nifty. The method
for calculation has changed from full market capitalization to free float method from 26
June, 2010. Reliance has been the highest contributor in the Nifty.

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Reliance share holding pattern clearly states the importance given to public
shareholding. As it is Indias largest private conglomerate it has also the highest public
share holders.
Reliance has the highest weight in Nifty. The scrip is one of the most sustained stocks. The
stock has been the biggest contributor to the recent rally. Reliance has gained under the
new free float method. And it has still maintained itself at the top of the list.
INFOSYS TECHNOLOGIES LTD. (NASDAQ: INFY) was started in 1981 by

seven people with US$ 250. Today, we are a global leader in the "next generation" of IT
and consulting with revenues of over US$ 4 billion.
Infosys defines designs and delivers technology-enabled business solutions that
help Global 2000 companies win in a Flat World. Infosys also provides a complete range
of services by leveraging our domain and business expertise and strategic alliances with
leading technology providers.
Their offerings span business and technology consulting, application services, systems
integration, product engineering, engineering, independent, IT infrastructure services and
business process outsourcing.
Infosys pioneered the Global Delivery Model (GDM), which emerged as a
disruptive force in the industry leading to the rise of offshore outsourcing. The GDM is
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based on the principle of taking work to the location where the best talent is available,
where it makes the best economic sense, with the least amount of acceptable risk.
In recent years, Infosys has begun shifting operations to the United States and
other countries outside of India. In 2012, Infosys announced a new office in Milwaukee,
Wisconsin to service Harley-Davidson, being the 18th international office in the United
States. Infosys hired 1,200 United States employees in 2011, and expanded the workforce
by an additional 2,000 employees in 2012. Globally, Infosys has 67 offices between the
US, India, China, Australia, Japan, Middle East, UK, Germany, France, Switzerland,
Netherlands, Poland, Canada. Infosys is the third-largest India-based IT services company
by 2012 revenues. Of this revenue, the majority comes from international business. In
2009, Infosys collected 1.2% of its income from the domestic Indian market.
Infosys takes pride in building strategic long-term client relationships. Their 97% of
revenues come from existing customers.
Change in weightage of Infosys tech

8.8
8.6
8.65
8.4
8.2
8
8.01
7.8
7.6
2011
2012
The graph shows the weight of Infosys in nifty in 2011 and 2012. Its been
observed that Infosys weight in nifty in year 2008 its 4%. The stock was the 5th highest
contributor in 2008. But the company has significantly moved from 4 % weight in the year
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2008 to 8% in the year 2011. This has happened because there has been a change in the
way of calculation of Market Capitalization in Nifty. The method for calculation has
changed from full market capitalization to free float method from 26 June, 2010 Infosys
has only 16% Promoters holding in the shareholding pattern.
Infosys share holding pattern clearly states the importance given to public
shareholding. As it is Indias largest IT Company. Promoters contribution is only to the
extent of 16% which shows the importance given to the public shareholding.
Infosys has the second highest weight in Nifty. Infosys contributes 8% of the nifty.
The scrip is one of the most sustained stocks. The stock has been one of the biggest
contributors to the recent rally. Infosys has gained under the new free float method.
ITC is one of India's foremost private sector companies with an annual turnover
stood at $7 billion and market capitalization of over $34 billion. ITC has a diversified
presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business,
Packaged Foods & Confectionery, Information Technology, Branded Apparel, Personal
Care, Stationery, Safety Matches and other FMCG products. While ITC is an outstanding
market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging
and Agri-Exports, it is rapidly gaining market share even in its nascent businesses of
Packaged Foods & Confectionery, Branded Apparel, Personal Care and Stationery. ITC's
diversified status originates from its corporate strategy aimed at creating multiple drivers
of growth anchored on its time-tested core competencies: unmatched distribution reach,
superior brand-building capabilities, effective supply chain management.

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The company has its registered office in Kolkata. It started off as the Imperial
Tobacco Company, and shares ancestry with Imperial Tobacco of the United Kingdom, but
it is now fully independent, and was rechristened to India Tobacco Company in 1970 and
then to I.T.C. Limited in 1974.
The company is currently headed by Yogesh Chander Deveshwar. It employs over
29,000 people at more than 60 locations across India and is listed on Forbes 2000. ITC
Limited completed 100 years on 24 August 2012.
Change in weightage of ITC

5.2
5.15
5.16
5.1
5.05
5
4.95
4.99
4.9
2011
2012
Tobacco major ITC Ltd has launched Wills Navy Cut Regular size filer cigarettes,
priced at Rs 24 a pack of 10 sticks in select markets in north and west India. The
brand has been launched keeping in mind ITC's objective of delivering superior
quality and value to, all its consumers. The new cigarettes, which have been
launched in select retail markets such as Mumbai and Pune, could be rolled out
nationally based on the response from these "test markets", ITC's distributors said.

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Analysts believe ITC's move to launch the new cigarette directly through retailers
instead of the companys distributor network could be a part of a strategy to deemphasise Wills as a tobacco brand.
ITC Foods has drawn up plans to foray into the nascent frozen foods category in
the domestic market within the next six-eight months. The company will extend its
Kitchen of India brand to frozen foods, which would include meals packaged in
trays and snacks. ITC recently began exporting frozen vegetarian foods to markets
such as the US and Canada, since exporting non-vegetarian foods out of India is
restricted. The company is manufacturing the frozen foods range at its Bangalore
facility, and will use the same to cater to the domestic market as well, ITC Foods
CEO Yogesh Chander Deveshwar told ET. This will be seventh food category ITC
Foods will tap.
State Bank of India (SBI) is the largest bank in India. The bank traces its
ancestry back through the Imperial Bank of India to the founding in 1806 of the Bank of
Calcutta, making it the oldest commercial bank in the Indian Subcontinent. The
Government of India nationalized the Imperial Bank of India in 1955, with the Reserve
Bank of India taking a 60% stake, and renamed it the State Bank of India. In 2008, the
Government took over the stake held by the Reserve Bank of India. SBI provides a range
of banking products through its vast network in India and overseas, including products
aimed at NRIs. The State Bank Group, with over 15,003 branches, including 157 foreign
offices making it the largest banking and financial services company in India by assests.
With an asset base of $501 billion, it is a regional banking behemoth. It has a market share
among Indian commercial banks of about 20% in deposits and advances, and SBI accounts
for almost one-fifth of the nations loans.
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SBI has tried to reduce its over-staffing through computerizing operations and
Golden handshake schemes that led to a flight of its best and brightest managers. These
managers took the retirement allowances and then went on the become senior managers at
new private sector banks. The State bank of India is 29th most reputable company in the
world according to Forbes. State Bank of India is one of the Big Four Banks of India with
ICICI Bank, Axis Bank and HDFC Bank.
Change in weightage of SBI

4.3
4.25
4.25
4.2
4.15
4.1
4.05
4.04
4
3.95
3.9
2011
2012
The reasons:
1. The bank has decided on revising interest rates in the second half of the year
2010. The bank, which has already extended loans worth INR 50 billion to help
cash-strapped mutual funds, India's largest bank, has announced its plans to raise
deposit rates by 25-50 basis points effective from June 1, 2010. While the two-tothree-year term deposit rate will be raised to 8.75 percent.
2. Countrys largest lender State Bank of India (SBI) reported a 10.2% rise in
quarterly profit on trading gains and rising loan demand. The bank, which along
with its associates controls almost a quarter of Indian bank loans and deposits, said
on Saturday that its July-September net profit rose to Rs 2,490 crore ($530.2
million) from Rs 2,260 crore a year earlier. That met a Reuters poll of brokers
who forecast a profit of Rs 2,460 crore for the period. Closest rival ICICI Bank on
Friday said that its quarterly net profit rose 2.6%, beating forecasts. Shares in State

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Bank, valued at $31.5 billion, rose 26% in July-September, beating a 20% rise in
the sector index and an 18% gain on the benchmark index.
ONGC (Oil and Natural Gas Corporation Limited) is India's leading

oil & gas exploration company. ONGC has produced more than 600 million metric tons of
crude oil and supplied more than 200 billion cubic meters of gas since its inception. Today,
ONGC is India's highest profit making corporate. It has a share of 77 percent in India's
crude oil production and 81 per cent in India's natural gas production. The origins of
ONGC can be traced to the Industrial Policy Statement of 1948, which called for the
development of petroleum industry in India. Until 1955, private oil companies such as
Assam Oil Company at Digboi, Oil India Ltd (a 50% joint venture between Government
of India and Burmah Oil Company) at Naharkatiya and Moaran in Assam, and IndoStanvac Petroleum project (a joint venture between Government of India and Standard
Vacuum Oil Company of USA) at West Bengal, were engaged in exploration work. The
vast sedimentary tract in other parts of India and adjoining offshore were largely
unexplored. In 1955, Government of India decided to develop the oil and natural gas
resources in the various regions of the country as part of the Public Sector development.
To achieve this objective an Oil and Natural Gas Directorate was set up in1955, as a
subordinate office under the then Ministry of Natural Resources and Scientific Research.
ONGC has a fully owned subsidiary, ONGC Videsh Ltd (OVL) that looks for
exploration opportunities in other parts of the world. OVL is pursuing exploration of oil
and gas in Russia, Iran, Iraq, Libya Myanmar and other countries. ONGC has also
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Page 55
acquired 72% stake in MRPL with full management control of the 9.69 tons, state-of-theart refinery.
Change in weightage of ONGC

3
2.95
2.9
2.95
2.85
2.8
2.75
2.7
2.65
2.67
2.6
2.55
2.5
2011
2012
The rebound in crude prices has increased the likelihood of healthy crude
realization in coming quarters, which will boost the bottomline of the company.
The market capitalization of ONGC was Rs. 1,78,538 crores in 2008 and it was
ranked on number 2nd among the top 10 companies, based on market capitalization. The
market capitalization of the company decreased to 54,718 crores and its ranking came
down to 8th among the top 10 companies.

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India is the fourth largest telecom market in Asia after China, Japan and South
Korea. The Indian telecom network is the third largest in the world and the second largest
among emerging economies. At current levels, telecom intensiveness of Indian economy
measured as the ratio of telecom revenues to GDP is 2.1 percent as compared with over
2.8 percent in developed economies.
Indian telecom sector has undergone a major process of transformation through
significant policy reforms. The reforms began in 1980s with telecom equipment
manufacturing being opened for private sector and were later followed by National
Telecom Policy (NTP) in 1994 and NTP'1999.
Historically, the telecom network in India was owned and managed by the
Government considering it to be a natural monopoly and strategic service, best under
state's control. However, in 1990's, examples of telecom revolution in many other
countries, which resulted in better quality of service and lower tariffs, led Indian policy
makers to initiate a change process finally resulting in opening up of telecom services
sector for the private sector.
The telecom industry of today is characterized by hyper competition, convergence
and constant change. The market for mobile services is exploding and new actors are
continuously entering the market. The rapid advancements and changes in this industry
provide companies with business opportunities as well as challenges due to an
increasingly complex environment in terms of competition and technology.
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Bharti Airtel formerly known as Bharti Tele-Ventures LTD (BTVL) is India's

largest cellular service provider with more than 183.61 million subscribers as of Nov
2012.
It offers its TELECOM services under the Airtel brand and is headed by Sunil Bharti
Mittal. The company also provides telephone services and Internet access over DSL in 14
circles.
Globally, Bharti Airtel is the 3rd largest in-country mobile operator by subscriber base,
behind China Mobile and China Unicom. In India, the company has a 24.6% share of the
wireless services market, followed by 17.7% for Reliance Communications and 17.4% for
Vodafone Essar.
The market share of Bharti Airtel as a overall percentage in NSE is shown below:
Change in weightage of Airtel

3
2.9
2.9
2.8
2.7
2.6
2.5
2.46
2.4
2.3
2.2
2011
2012
The market capitalization of Bharti Airtel was Rs. 52,923.9 crores in 2011 and it was
ranked on number 10th among the top 10 companies based on market capitalization. The
market capitalization of the company increased to 50,414 crores and its ranking go up to
5th among the top 10 companies.
Issues
Rural Telecommunications

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Interconnection
Spectrum Allocation
Other reasons for such fall are:
Bharti Airtel and MTN deal: Bharti Airtel Ltds shares had risen 4% to Rs435 soon
after its talks with South Africas MTN Group Ltd were called off. But that relief rally
was short-lived, with its shares falling by 8% to Rs400. When Bharti was pursuing the
deal, the markets were concerned about its implications and the resultant uncertainty
had led to its shares underperforming the market by a wide margin.
Fierce Price-War between the Telecom giants: Bharti recently cut its rates by about
10% for on-network calls, and all the major incumbents responded to this move
immediately. We believe that such rapid cuts in prices are negative, as this can
aggravate investor concerns about industry fragmentation and irrational pricing.
Larsen & Toubro
Limited (L&T) is
Indias largest engineering
and
conglomerate
additional
with
construction
interests
in electrical, electronics
and IT. A strong
customer-focused
approach
constant quest for top-
class
enabled L&T to attain and
sustain
and
quality have
leadership
position over 6 decades. L&T enjoys a premier brand image in India and its international
presence is on the rise. ECC the Engineering Construction & Contracts Division of L&T
is Indias largest construction organization. Many of the countrys prized landmarks its
exquisite buildings, tallest structures, largest industrial projects, longest flyovers, highest
viaducts have been built by ECC. Leading-edge capabilities of ECC cover every
discipline of construction: civil, mechanical, electrical and instrumentation engineering.
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L&T market cap has increased from 42,566 crore (2009) to 89,672 crore (2010),
which accounts to 7% of the market capitalization in year 2011 as compared to 2.49% in
the November, 2010
Change in weightage of L & T

7.2
7
6.8
6.6
6.4
6.2
6.22
6
5.8
2011
2012
Larsen and Toubro (L&T) is one company which seems to be bucking the
slowdown trend. The engineering and construction behemoth has projected an order book
of Rs 66,000 crore (Rs 660 billion) by March 2011, a growth of 30 per cent over the
previous year. The company is, however, likely to close the year with a better-thanprojected order book of Rs 75,000 crore, though it is not certain about the growth
prospects in the next financial year.
Larsen & Toubro Ltd, the diversified engineering company, has raised $600
million (Rs2, 280 crore) through qualified institutional placements and foreign currency
convertible bonds to fund expansion in its emerging businesses, including railways and
defense. The company sold $400 million of shares and $200 million of foreign currency
convertible debentures. The shares were priced at a 1 per cent discount. L&T is adding
railways, defense and shipbuilding to its main business of constructing factories, roads and
bridges, to benefit from a government plan to spend $500 billion by 2014 to augment
Indias infrastructure.
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ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian

financial institution, and was its wholly-owned subsidiary. ICICIs shareholding in ICICI
Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an
equity offering in the form of A
DRs listed on the NYSE in fiscal 2000, ICICI Banks acquisition of Bank of Madura
Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI
to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the
initiative of the World Bank, the Government of India and representatives of Indian
industry. The principal objective was to create a development financial institution for
providing medium-term and long-term project financing to Indian businesses. In the
1990s, ICICI trang sformed its business from a development financial institution offering
only project finance to a diversified financial services group offering a wide variety of
products and services, both directly and through a number of subsidiaries and affiliates
like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or
financial institution from non-Japan Asia to be listed on the NYSE.
ICICI Banks market capitalization rose to 87,524.30 in November 2011 from
39,132 in November 2010, which accounts to 6.83% as compared to 2.29% in the previous
year.
Indias largest private sector bank by net profit ICICI Bank rose 7.6% as its American
depository receipt (ADR) rose 4.76%.

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Page 61
Change in weightage of ICICI Bank

6.85
6.8
6.83
6.75
6.7
6.65
6.6
6.59
6.55
6.5
6.45
2011
2012

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ICICI Bank is India's
second-largest bank with total
assets of Rs. 4,736.47 billion
(US$ 93 billion) at March 31,
2012 and profit after tax Rs.
64.65 billion (US$ 1,271
million) for the year ended March 31, 2012. The Bank has a network of 3,100 branches
and 10,486 ATMs in India, and has a presence in 19 countries, including India.
HDFC was incorporated in 1977 with the primary objective of meeting a social need
that of promoting home ownership by providing long-term finance to households for their housing
needs. HDFC was promoted with an initial share capital of Rs. 100 million.
The primary objective of HDFC is to enhance residential housing stock in the

country through the provision of housing finance in a systematic and professional manner,
and to promote home ownership. Another objective is to increase the flow of resources to
the housing sector by integrating the housing finance sector with the overall domestic
financial markets.
HDFC Bank is the fifth or sixth largest bank in India by assets and the first largest
bank by market capitalization as of November 1, 2012. The bank was promoted by
the Housing Development Finance Corporation, a premier housing finance company (set
up in 1977) of India. As on December 2012, HDFC Bank has 2,776 branches and 10,490
ATMs, in 1,399 cities in India, and all branches of the bank are linked on an online realtime basis
HDFC Ltd. Market waightage in the previous year, which accounts for 5.11% in
2011 as compared to 4.92% in 2012.

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Page 63
Change in weightage of HDFC Ltd

5.15
5.1
5.11
5.05
5
4.95
4.92
4.9
4.85
4.8
2011
2012
The Groups principal activity is to provide information technology and business

process outsourcing services. The Group provides services to industries such as banking
and financial services, insurance, manufacturing, telecommunications, retail and
transportation. On 19-Sep-2008, it acquired Tata Consultancy Services (Philippines) Inc.
On 22-Oct-2008, the Groups wholly owned subsidiary, Tata InfoTech Deutschland GmbH
merged with Tata Consultancy Services Deutschland GmbH. On 02-Dec-2008, its
subsidiary Financial Network Services (Europe) Plc voluntarily liquidated. On 11-Dec2008, the Group acquired 50% share capital of National Power Exchange Limited. On 31Dec-2008, it acquired 96.26 % equity interest in TCS e-Serve Limited.
TCS entered the small and medium enterprises market for the first time in
2011, with cloud-based offerings. On the last trading day of 2011, TCS overtook RIL to
achieve the highest market capitalization of any India-based company.
Reasons:
TCS (Tata Consultancy Services) share value down as the TCS share split was enforced
today. After the 1:1 share split TCS share price at about 350 (previous close over 700).
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Page 64
Change in weightage of TCS

3
2.74
2.5
2
2.01
1.5
1
0.5
0
2011
Indias largest
2012
consumer
products company and have an annual turnover of over Rs 13,000 crores (calendar year
2009). It was formed in 1933 as Lever Brothers India Limited and came into being in 1956
as Hindustan Lever Limited through a merger of Lever Brothers, Hindustan Vanaspati
Mfg. Co. Ltd. And United Traders Ltd. It is headquartered in Mumbai, India and has
employee strength of over 16,500 employees and contributes for indirect employment of
over 65,000 people. The company was renamed in late June 2007 to Hindustan Unilever
Limited.
In 2007, Hindustan Unilever was rated as the most respected company in India for
the past 25 years by Business World, one of Indias leading business magazines. The rating
was based on a compilation of the magazines annual survey of Indias Most Reputed
Companies over the past 25 years. HUL is the market leader in Indian consumer products
with presence in over 20 consumer categories such as Soaps, Tea, Detergents and
Shampoos amongst others with over 700 million Indian consumers using its products. It
has over 35 brands. Eighteen of HULs brands featured in the AC Nielsen-Brand Equity
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list of 100 Most Trusted Brands Annual Survey (2012) . According to Brand Equity, HUL
has the largest number of brands in the Most Trusted Brands List. Its a company that has
consistently had the largest number of brands in the Top 50 and in the Top 10 (with 4
brands).
Change in weightage of HUL

3
2.5
2.42
2
1.72
1.5
1
0.5
0
2011
2012
Reasons:
Hindustan Unilever Ltd (HUL) continues to be plagued by market-share loss
across its key categories toilet soaps, tea and toothpastes, among others. Fast moving
consumer goods major saw decline in volumes in eight of its top ten categories year on
year, of which six categories have also shown a loss in market share. HUL which has been
reporting sequential market-share loss, is aware that the majority of its share loss has been
in the mass-end segment. Despite many re-launches and heavy investments driving
volume growth, most categories continued to lose on volumes.

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BHEL, a public sector undertaking, is the largest engineering and manufacturing

enterprise in India in the energy-related/infrastructure sector. The company was set up at
Bhopal under the name of M/s Heavy electrical (India) Ltd. In collaboration with AEI,
UK. Subsequently, three more plants were set up at Hyderabad, Hardwar and Trichy.
BHEL manufactures over 180 products under 30 major product groups and caters to
sectors like power generation & transmission, industry, transportation, telecommunication,
renewable energy, etc. The company has 14 manufacturing divisions, four power sector
regional centres, over 100 project sites, eight service centres and 18 regional offices. The
company has installed equipment for over 90,000 MW of power generation and has
supplied over 2,25,000 MVA transformer capacity and other equipment operating in the
transmission & distribution network up to 400 kV (AC & DC). Between Jan. 92 and
Feb.92, the government disinvested a portion of its share holding in the company.

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Change in weightage of BHEL

4
3.8
3.5
3
2.5
2.44
2
1.5
1
0.5
0
2011
2012
Reasons:
The company was facing a lot of issues with regards to proper execution of orders
and too much of inventory being stocked up. There was decrease in their profits which
bound to bring down the market price of the company. The company produces capital
goods and during the time of economic slowdown, the demand for the same had come
down. As a result of which there was a decline in the BSE Capital Goods index of about
40%. The company also started losing out on foreign competition, where 2 of its major
orders were bagged by companies from China and Japan. The 52 week low price was
Rs.981 and 52 week high price is Rs.2550. There was a lot of fluctuation in the market
prices in the mid year where prices ranges on between Rs.1170-Rs.1190.

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NTPC Limited is the largest thermal-power generating company of India. A

public sector company, it was incorporated in the year 1975 to accelerate power
development in the country. Since then, it has grown to become the largest power utility of
the country. NTPC has mostly built regional power stations supplying power to the various
states in the region as per the power allocation formula approved by the government of
India. The strategy, inter-alia, includes capacity addition through green field projects,
expansion of existing stations, joint ventures, takeover of SEB`s stations, significant
addition of hydro-capacity, and forays into non-conventional and nuclear power
generation.
NTPC has also entered into a MoU with Petronet LNG for arranging one MMTPA
of LNG which can be used to overcome shortage of gas at the existing gas power stations
of NTPC. NTPC signed a MoU with The Energy and Resources Institute (TERI) for
implementation of distributed generation projects in villages in India.

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NTPC PERFORMANCE AS PER WEIGHTAGE

1.65
1.63
1.6
1.55
1.5
1.45
1.44
1.4
1.35
1.3
2011
2012
Reasons:
NTPC is a Public Sector Undertaking and there have been continuous changes in
this sector with government disinvestment happening in many units. This has been done in
order to attract more capital from the public, FDI in specific, and to enhance the economic
growth of the country in this time of recession.
There are 2 aspects that are considered while calculating the top 10 companies i.e.
Market price and the number of shares issued. Market prices may dip when the investors
confidence is low with regards to the company or if the company itself is not performing
well in the market.
Even though the profits for the company were on a rise, the market prices kept on falling.
The 52 week low price was Rs.113 and 52 week high price is Rs.233. There was a lot of
fluctuation in the market prices (Rs. 150 Rs. 180) during December March, due to
which the prices fell. When NTPC was to come out with the IPO, it was considered to be
better than Reliance and TATA Power. However, there is was lack of confidence in the
retail investors and there was not much participation by them in the F&O segment.

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FINDINGS
1. The Nifty 50 has fall down in the year 2008 due to economic breakdown i.e. global
crises.
2. Free float method has changed the positions of all the stocks in NIFTY. Changes in the
ranking of the stocks have been due to the free float market capitalization method.
3. The top 8 stocks of nifty constitute more than 50% weight in the nifty. It tells the
biasness for the stocks like RELIANCE, INFOSYS. It can also be predicted if Nifty
moves up or down then it is majorly due to the top 8 stocks.
4. The Reliance is ranked first as per its market capitalization but its performance has
fall in the year 2011 as compared to the year 2012 i.e. from 10.95 to 10.11
(weightage).
5. The Infosys weight age is raised from 8.01 to 8.65%.
6. ONGC weight age has fallen down from 2.95.to 2.67%.
7. The weight age of Bharti airtel has fallen from 2.9 to 2.46%.
8. The weightage of SBI has fallen from 4.23 to 4.04%.
9. Investing in nifty for short term may be risky but in long term it has more potential to
give the better return.

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SUGGESTIONS
Suggestions to investors while trading in Nifty:
While investing in Nifty shares, an investor should deliberately analyze the pros
and cons of the investing procedures and trading regulations of particular stock
exchange.
Some of the tips you need to learn before investing in Nifty shares.
At the very beginning, you must envisage and realize the corporate environment
of the organization whose shares are to be purchased by you.
Observe the company management and their long term decisions before going to
invest in Nifty.
Purchasing of those shares that are unlisted or inactive for a long time could push
you in a huge loss so it's good to keep it avoid.
Shares of diversified companies make the best deal as the risk of liquidity loss is
reduced here.
Conclusion
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Page 72
The nifty 50 is well diversified stock index which includes the 24 sectors of
industries which acts as a best portfolio to invest in. The Companies in Nifty 50 have
given the better returns so as investors we can invest in Nifty 50 in order to get better
returns from this portfolio. Nifty 50 is such a portfolio where all the best performing
companys shares are listed so as to give good returns to the customer.
Generally people investment in stock market by analyzing both fundamental &
technical aspects & the performance of the Top 10 Companys of Nifty 50 are showing
good results.
ANNEXURE
Balance sheet of as on 31, March 2012
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Page 73
As at 31st March,
2012
Rs in Lacs
As at 31st
March, 2011
Rs in Lacs
As at 31st
March, 2010
Rs in Lacs
35,248.15
34,865.56
33,827.10
174.20
174.20
174.20
Loan Funds
56,022.84
23,030.85
3,434.70
Total
91,445.19
58,070.61
37,436.00
15,992.06
18,149.00
17,651.43
SOURCES OF FUNDS
Shareholders' Funds
Share Application Money
APPLICATION OF FUNDS
Net Fixed Assets
Stock Exchange Membership
Cards
Investments
15.75
21.00
26.25
17,392.55
18,002.92
15,670.02
Current Assets
73,824.32
44,954.71
33,024.30
Less: Current Liabilities and

Provisions
Net Current Assets
15,908.43
23,228.74 28
28,984.70
57,915.89
21,725.97
4,039.60
128.94
171.76
48.70
91,445.19
58,070.61
37,436.00
Deferred Tax Asset

Total
Bibliography

Raichur.
Page 74
Information is collected through:

Security Analysis & portfolio management: Punithavathy pandian
Websites:
www.nseindia.com
www.capitalvia.com
www.karvy.com

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Page 75

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PART-A

H.K.E.S society S L N college of Engineering Yermarus Camp

H.K.E.S society S L N college of Engineering Yermarus Camp

H.K.E.S society S L N college of Engineering Yermarus Camp

B.Nature of Business Carried

Quality policy of Karvy

D. Products and service profile

6 lakhs customer accounts in this business spread across over 250