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INDEX
Sr. no. TOPIC
1 Executive summary
3 Introduction
4 Objective/scope of study
5 Definations
6 Research methodology
7 Data collection
8 Analysis
9 Conclusion
10 Recommendation
11 Limitation
12 Bibliography
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M O RM AL FI N AN CI A L RE S E AR C H
3
ABOUT US
Our research team provides you the tools to succeed the right way.
Our aim at providing services in accordance with the comfort levels
of all traders/investors in stock market ranging from small investors
to HNI's.We provide recommendations in all segments with proper
assistance & fast SMS/ messenger facility. We also provide you the
updates of each & every aspects of market that help you too keep
update & aware. Here we try to fulfil your dreams to make money
from stock market.
OUR MISSION
We want to help our clients to get greater returns out of their investments.
We wish to get based as a reliable and one stop source for the clients’s
desires. The betterment of our clients is the firstly intention of Moral
Financial Research. We need to assist our clients to get larger returns out
of their investments.
OUR VISION
5
We are providing different services to our clients whose who are trading
in the share market we are giving a valuable advice to our valuable
costumer so that they can trade on right direction with our help
Equity
Commodity
Premium HNI
Express Services
6
Equity Services
Stock cash:-
In stock cash market we provide our clients timely intraday best stock
tips which drive them to make maximum profit from the equity
market. Calls are given for NSE Stock Cash Traders and Investors.
We give the calls through SMS system which ensure instant delivery
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MEDIUM OF CALLS:
Nifty Future:-
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MEDIUM OF CALLS:
Index option:-
MEDIUM OF CALLS:
This service is for the traders who trade in Stock Future. In this pack
we provide Intraday Stock Futures calls. These Stock Futures Tips are
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MEDIUM OF CALLS:
Option tips:-
Under this you will get Stock Options & Nifty Options calls, on
intraday basis no positional calls will be given by us in this package.
This is our combo service where we provide tips in Stock Option &
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MEDIUM OF CALLS:
Commodity
MEDIUM OF CALLS:
Agri Package:-
Around 2-3 Calls will be given daily for Agri Commodities traded
in NCDEX and MCX – Chana, Guar, Jeera, Pepper, Mentha,
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Proper follow-ups and news information
Daily and weekly newsletters
24/7 customer support
MEDIUM OF CALLS:
Bullion package:-
MEDIUM OF CALLS:
Energy Pack:-
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OBJECTIVE
As Share Market is the fastest growing sector in India due to heavy
demand of IT services in India . There are huge investment
opportunities as there is high rate of return.
To exploit this opportunity and earn profit by means of investment
in this sector
To help analyze the company by understanding simple terms to
invest correctly and effectively
DEFINATIONS
Equity/Share
Total equity capital of a company is divided into equal units of small
Denominations, each called a share. For example, in a company the total
Equity capital of Rs 2,00,00,000 is divided into 20,00,000 units of Rs 10
Each. Each such unit of Rs 10 is called a Share. Thus, the company
Then is said to have 20,00,000 equity shares of Rs 10 each. The holders
of such shares are members of the company and have voting rights.
Debt Instrument
Derivative?
Derivative is a product whose value is derived from the value of one or
more basic variables, called underlying. The underlying asset can be
equity, index, foreign exchange (forex), commodity or any other asset.
Derivative products initially emerged, as hedging devices against
fluctuations in commodity prices and commodity-linked derivatives
remained the sole form of such products for almost three hundred years.
The financial derivatives came into spotlight in post-1970 period due to
growing instability in the financial markets. However, since their
emergence, these products have become very popular and by 1990s, they
accounted for about two- thirds of total transactions in derivative
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products.
Mutual Fund?
A Mutual Fund is a body corporate registered with SEBI (Securities
Exchange Board of India) that pools money from individuals/corporate
investors and invests the same in a variety of different financial
instruments or securities such as equity shares, Government securities,
Bonds, debentures etc. Mutual funds can thus be considered as financial
intermediaries in the investment business that collect funds from the
public and invest on behalf of the investors. Mutual funds issue units to
the investors. The appreciation of the portfolio or securities in which the
mutual fund has invested the money leads to an appreciation in the value
of the units held by investors.
binding on the Mutual Fund scheme. The investment objectives specify
the class of securities a Mutual Fund can invest in. Mutual Funds invest
inThe investment objectives outlined by a Mutual Fund in its prospectus
are
12various asset classes like equity, bonds, debentures, commercial paper
and government securities. The schemes offered by mutual funds vary
from fund to fund. Some are pure equity schemes; others are a mix of
equity and bonds. Investors are also given the option of getting dividends,
which are declared periodically by the mutual fund, or to participate only
in the capital appreciation of the scheme.
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Index
It is a basket of securities and the average price movement of the basket
of securities indicates the index movement, whether upwards or
downwards.
Depository
A depository is like a bank wherein the deposits are securities (viz.
shares, debentures, bonds, government securities, units etc.) in electronic
form.
Dematerialization
Dematerialization is the process by which physical certificates of an
investor are converted to an equivalent number of securities in electronic
form and credited
An Index shows how a specified portfolio of share prices is moving in
order
to the investor’s account with his Depository Participant (DP).
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SEBI’s role
The Securities and Exchange Board of India (SEBI) is the regulatory
authority in India established under Section 3 of SEBI Act, 1992. SEBI
Act, 1992 provides for establishment of Securities and Exchange Board
of India (SEBI) with statutory powers for (a) protecting the interests of
investors in securities (b) promoting the development of the securities
market and (c) regulating the securities market. Its regulatory jurisdiction
extends over corporate in the issuance of capital and transfer of securities,
in addition to all intermediaries and persons associated with securities
market. SEBI has been obligated to perform the aforesaid functions by
such measures as it thinks fit. In particular, it has powers for:
Regulating the business in stock exchanges and any other securities
markets
Registering and regulating the working of stockbrokers, sub–brokers
etc.
Promoting and regulating self-regulatory organizations
Prohibiting fraudulent and unfair trade practices
Calling for information from, undertaking inspection, conducting
Inquiries and audits of the stock exchanges, with the securities
market.
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Market Segments
Securities markets provide a channel for allocation of savings to those
who have a productive need for them. The securities market has two
interdependent and inseparable segments: (i) primary market and (ii)
secondary market.
Primary Market
Primary market provides an opportunity to the issuers of securities, both
Government and corporations, to raise resources to meet their
requirements of investment. Securities, in the form of equity or debt, can
be issued in domestic /international markets at face value, discount or
premium.
The primary market issuance is done either through public issues or
private placement. Under Companies Act, 1956, an issue is referred as
public if it results in allotment of securities to 50 investors or more.
However, when the issuer makes an issue of securities to a select group
of persons not exceeding 49 and which is neither a rights issue nor a
public issue it is called a private placement.
Secondary Market
Secondary market refers to a market where securities are traded after
being offered to the public in the primary market or listed on the Stock
Exchange. Secondary market comprises of equity, derivatives and the
debt markets. The secondary market is operated through two mediums,
namely, the Over-the-Counter (OTC) market and the Exchange-Traded
market. OTC markets are informal markets where trades are negotiated.
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PRIMARY MARKET
SECONDARY MARKET
Products
Financial markets facilitate reallocation of savings from savers to
entrepreneurs. Savings are linked to investments by a variety of
intermediaries through a range of complex financial products called
“securities”. Under the Securities Contracts (Regulation) Act [SC(R)A],
1956, “securities” include (i) shares, bonds, scrips, stocks or other
marketable securities of like nature in or of any incorporate company or
body corporate, (ii) government securities, (iii) derivatives of securities,
(iv) units of collective investment scheme, (v) interest and rights in
securities, and security receipt or any other instruments so declared by the
central government. Broadly, securities can be of three types - equities,
debt securities and derivatives.
Participants
The securities market has essentially three categories of participants (i)
the investors, (ii) the issuers, (iii) the intermediaries (Figure 1.1). The
Securities and Exchange Board of India (SEBI), Reserve Bank of India
(RBI), Ministry of Corporate Affairs (MCA) and the Department of
Economic Affairs (DEA) of the Ministry of Finance regulate these
participants.
Equity Investment
If we take the Nifty index returns for the past fifteen years, Indian stock
market has returned about 16% to investors on an average in terms of
increase in share prices or capital. Besides that on average stocks have
paid 1.5% dividend annually. Dividend is a percentage of the face value
of a share that a company returns to its shareholders from its annual
profits. Compared to most other forms of investments, investing in equity
shares offers the highest rate of return, if invested over a longer duration.
Broadly there are two factors: (1) stock specific and (2) market specific.
The stock-specific factor is related to people’s expectations about the
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Fundamental analysis
These are the most popular tools of fundamental analysis. They focus on
earnings, growth, and value in the market. They can be studied with
ratios.
• Dividend Yield
• Book Value
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It makes more sense to look at earnings per share (EPS) for use as a
comparison tool. You calculate earnings per share by taking the net
earnings and divide by the outstanding shares.
Trailing EPS – last year’s numbers and the only actual EPS
Current EPS – this year’s numbers, which are still projections
Forward EPS – future numbers, which are obviously projections
The P/E gives you an idea of what the market is willing to pay for the
company’s earnings. The higher the P/E the more the market is willing to
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pay for the company’s earnings. Some investors read a high P/E as an
overpriced stock and that may be the case, however it can also indicate
the market has high hopes for this stock’s future and has bid up the
price.The P/E is the most popular way to compare the relative value of
stocks based on earnings because you calculate it by taking the current
price of the stock and divide it by the Earnings Per Share (EPS). This tells
you whether a stock’s price is high or low relative to its earnings.
Investors may consider a company with a high P/E overpriced and they
may be correct. A high P/E may be a signal that traders have pushed a
stock’s price beyond the point where any reasonable near term growth is
probable.However, a high P/E may also be a strong vote of confidence
that the company still has strong growth prospects in the future, which
should mean an even higher stock price.
Because the market is usually more concerned about the future than the
present, it is always looking for some way to project out. Another ratio
you can use will help you look at future earnings growth is called the
PEG ratio. The PEG factors in projected earnings growth rates to the P/E
for another number to remember.
You calculate the PEG by taking the P/E and dividing it by the projected
growth in earnings.
For example, a stock with a P/E of 30 and projected earning growth next
year of 15% would have a PEG of 2 (30 / 15 = 2).
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What does the “2” mean? Like all ratios, it simply shows you a
relationship. In this case, the lower the number the less you pay for each
unit of future earnings growth. So even a stock with a high P/E, but high
projected earning growth may be a good value.
One ratio we can use is Price to Sales or P/S ratio. This metric looks at
the current stock price relative to the total sales per share. You calculate
the P/S by dividing the market capof the stock by the total revenues of the
company.
We can also calculate the P/S by dividing the current stock price by the
sales per share.
or
When dealing with a young company, there are many questions to answer
and the P/S supplies just one answer.Investors looking for hot stocks
aren’t the only ones trolling the markets. A quiet group of folks called
value investors go about their business looking for companies that the
market has passed by.
Some of these investors become quite wealthy finding sleepers, holding
on to them for the long term as the companies go about their business
without much attention from the market, until one day they pop up on the
screen, and some analyst “discovers” them and bids up the stock.
Meanwhile, the value investor pockets a hefty profit.
Value investors look for some other indicators besides earnings growth
and so on. One of the metrics they look for is the Price to Book ratio or
P/B. This measurement looks at the value the market places on the book
value of the company.
You calculate the P/B by taking the current price per share and dividing
by the book value per share.
P/B = Share Price / Book Value Per Share
Like the P/E, the lower the P/B, the better the value. Value investors
would use a low P/B is stock screens, for instance, to identify potential
candidates.
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For example, if a company paid out $1 per share in annual dividends and
had $3 in EPS, the DPR would be 33%. ($1 / $3 = 33%)
The real question is whether 33% is good or bad and that is subject to
interpretation. Growing companies will typically retain more profits to
fund growth and pay lower or no dividends.
Dividend Yield
if we are value investor or looking for dividend income then there are a
couple of measurements that are specific for us. For dividend investors,
one of the telling metrics is Dividend Yield.
This measurement tells you what percentage return a company pays out
to shareholders in the form of dividends. Older, well-established
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Book Value
In other words, if you wanted to close the doors, how much would be left
after you settled all the outstanding obligations and sold off all the
assets.A company that is a viable growing business will always be worth
more than its book value for its ability to generate earnings and growth.
Book value appeals more to value investors who look at the relationship
to the stock's price by using the Price to Book ratio.
Return on Equity
The Differences Charts vs. Financial Statements At the most basic level,
a technical analyst approaches a security from the charts, while a
fundamental analyst starts with the financial statements.
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RESEARCH METHOLOGY
BASIC RESEARCH:
Basic research is also called as fundamental or pure research. Its primary
objective is the advancement of knowledge and the theoretical
understanding of the relations among the variables. It is exploratory and
often driven by researcher’s curiosity or interest. It is conducted without
any practical end in mind. Basic research often lays down the foundation
for further applied research.
APPLIED RESEARCH:
Applied research is done to solve specific, practical questions. Its primary
objective is not to gain knowledge for its own sake. It is usually
descriptive in nature. It is almost always done on the basis of basic
research.
As far as equity research is concerned there are two types of research
methods that are followed:
• Fundamental analysis
• Technical analysis
Financial statement analysis is the biggest part of Fundamental analysis
also known as quantitative analysis, it involves looking at historical
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DATA COLLECTION:
• Primary data for a project is the first hand information regarding the
project being studied. In this regard the primary data for this project
would be getting the necessary information from the company
management by an interview, telephonic conversation or direct mail.
• Secondary data for a project would be the collection of information
that has a bearing on the outcome of the project from secondary sources
like news, press releases, internet etc.
The data collected for this project was from a secondary source. The data
was complied with the help of sources like News articles, Internet,
Capitaline software. In this research, primary data could not be gathered
as the company officials could not be contacted for a one to one interview
or a telephonic interview.
ECONOMIC ATTRACTION:-
There is a lot of economic attraction towards Share Market due to
low cost advantage and other factors. India, with its low cost advantage
and emergence of several private players, represents the fastest growing
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SOCIAL FACTORS
These are social factors affecting IT industry, which ranges from
employee right, language barriers, race nationality of company or other
issues. English language being widely spoken in India has help in
fostering the industry’s relationship and interaction in India and on the
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global stage. India is one of the few countries to have an increasing share
of working population; since there is great availability of both skilled and
unskilled labor force. Great number of institute and universities offer IT
Course creating room for availability of IT professional at lower cost
since there is job competition. India has to produces great numbers of IT
professional each year to meet its demand. India continue to produce IT
professionals each year, this has help industry for IT professionals
inwards. Industries have to consider the type of services the software is
meant for, age difference of users, life style of the different countries of
supply. It should be noted that there will always be difference in client
behaviours which is supported by the fact that different customers have
different taste.
SOCIAL ISSUES;-
Should Industry be concern with the issue of global warming? Yes it is
affected by many government laws regarding it like in china, where
company with great amount of carbon emission are charge great amount
of tax. Likewise being a major player in the global IT market Infosys has
introduces measure to help in the reduction of carbon emission by trying
to reduce its water consumption, electricity utilization, carbon emission
and partnering with other companies in troubleshooting this global
dilemma
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EDUCATION:-
There are large number of universities and institutes in India offering IT
education. And there are large numbers of students which ever year
passed these courses and join the IT industry. The Indian labor is not only
cheap but is technically skilled too to the world-class level. It is due to the
Indian Education System that includes in its course curriculum the
practical knowledge of the latest technology that is developed in world
along with the fluency in English Language that imparts compatibility in
an Indian technician to communicate and work throughout the world.
CAREER PROSPECTS
In the year 2006-07, the industry hired approximately 3, 80,000 people.
Out of these, the ITeS sector hired 2, 00,000 people and the rest were
taken by IT sector. The recruitment trends of some IT giants are given
below: TCS- 35,000 Infosys- 30,000 Wipro-28,000 Satyam-20,000 Some
of the areas of specialization in the IT Industry are-
Designing Research and Development in Peripheral Integration Product
Quality Control and Reliability Testing Computer Manufacturing
Maintenance Service System Developing /Programming /Software
Engineering Networking Application Programming EDP/ E- Commerce
Enterprise Resource Planning (ERP) Database Warehousing and
Management
Operating jobs, Computer operators, Data Entry WORKING AGE
POPULATION:-
Working age population also affects the industry a lot because every
person has different value, lifestyle, attitude, and also the satisfaction
level.
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TECHNOLOGICAL FACTORS;-
TELEPHONY
Cellular mobile telephony tariffs in India are the lowest in the world.
A comparison of Indian cellular tariffs vis-à-vis the tariffs prevailing in
comparative emerging economies in South America & Asia-Pacific
region, clearly brings out the affordability of Indian cellular mobile
telephone services.
NEW IT TECHNOLOGY:-
With the evolution of SOA and semantic web services, enterprise solution
heeds to the limitations of conventional enterprise systems by providing
data convergence and concept reutilization with intelligence. Web2.O
represents the next transition in the evolution of web applications; they
promise to restore the richness, interactivity and usability lacking in many
web applications.
CAD:-
Computer-aided design (CAD) is the use of a wide range of computer-
based tools that assist engineers, architects and other design professionals
in their design activities. It is the main geometry authoring tool within the
Product Lifecycle Management process and involves both software and
sometimes special-purpose hardware. Current packages range from 2D
vector based drafting systems to 3D solid and surface modellers.
LEGAL ASPECTS AND POLICIES
This speedy growth of Share Market is undoubtedly due to the efforts of
Indian government and the other developments that took in the other parts
of the globe.
IT Act 2000:
India became the 12th nation in the world to adopt a cyber law during
2000.
• From the perspective of e-commerce in India, the IT Act 2000 and its
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CONCLUSION
BIBLIOGRAPHY
WEBSITES:
www.rathi.com
www.investopedia.com
www.bseindia.com
www.nseindia.com
www.moneycontrol.com
www.indiastudychannel.com
BOOKS:
Investment Analysis and Portfolio Management- Prasanna Chandra.