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ACKNOWLEDGEMENT
Sometimes words fall short to show gratitude, the same happened with me during this project. The immense help and support received from Reliance Money Limited overwhelmed me during the project. It is a great opportunity for me to work with Reliance money, pioneers in the field of stock trading, a part of Reliance Capital Ltd. I am extremely grateful to the entire team of Reliance Money at Dhanbad who have shared their expertise and knowledge with me and without whom the completion of this project would have been virtually impossible. My sincere gratitude to Mr. Chandan Kumar ( Head, Dhanbad) for providing me with an opportunity to work with Reliance Money Limited as a company project guide who has provided me with the necessary information and his valuable suggestion and comments on bringing out this report in the best possible way. I am highly indebted to Mr. Mithun Chakarborty and Narendra Nath Roy (Relationship Manager of Reliance Money) and company project guide Mr. Anirban Rakshit and Virti Jain, who has provided me the necessary information and his valuable suggestion and a good support in understanding the basics of the Reliance Money easily and share trading.

PREFACE
This project A REPORT ON DESCRIPTIVE STUDY OF STOCK MARKET AND STUDY OF INVESTORS PERCEPTION ABOUT INVESTMENT IN STOCK MARKET has been prepared to understand the requirement of the investors. The project introduces the demand of financial product of Reliance money ltd. This project comprises of various topic which are respected in very easy language which will help the user to understand the concepts easily. Every study is incomplete without having a well planned research methodology and concrete exposure to the student. This project provide us an in-depth study of how to financial product, advantages and disadvantages of financial product, various types and importance financial product .It tells us about the customer preferences towards various types of investment schemes with respect to stock market and other financial products. Opening of the mutual fund industry to the public sector banks and Insurance companies, led to the launching of more and more new schemes. The financial industry in India has grown fast in the recent period. The performance is encouraging especially because the emphasis in India has been on individual investors in contrast to advanced countries. In this project we study that financial product are managed by professionals, they are considered to have a better knowledge of market behaviors. Besides, they bring a certain competence to

their job. They also maximize gains by proper selection and timing of investment. Hence Reliance Money provides many financial products on the single window. Reliance money deals with the product and Investment options are available in... Derivatives Trading Special feature is available first time to track your positions online, in real time.

STUDENTS DECLARATION
I, Sintu Kumar Singh, student of M.B.A, hereby declare that

Descriptive Study of Stock market and Study of Investors Behavior of Investment submitted in the
Project entitled partial fulfillment of the degree for Master of Business Administration to DBS is of my own accurate work. I further declare that all the facts and figures furnished in this project report are the outcome of my own intensive research and findings. Submitted By Sintu Kumar Singh

TABLE OF CONTENT
1. Acknowledgment 2. Preface 3. Declaration 4. Certificate 5. Introduction 6. Reliance Money (A) VISION (B) MISSION (C) Product and Services 7. Reliance Group Structure 8. Working of Reliance Money 9. Competitors of Reliance Money 10. Stock Exchange and its role 11. Basic terms of share trading and Stock market 12. Online share trading process 13. Important INDICES of NSE
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14. Constituent List of S&P CNX Industries Indices 15. List of Different Indian Industries With their symbols and ISIN Codes 16. Derivatives and its Detail study 17. World Indices and Their Details 18. Survey, feedback & data analysis Research Methodology Types Of Research Methods Of Data Collection Tools Of Analysis Research Design Questionnaire Observation Result Conclusion & Recommendation 19. Bibliography 20. Annexure

INTRODUCTION
Whether its retiring early, saving for childrens education, Paying off a loan or to live a secured and satisfied life everyone has dreams they can achieve by investing their savings. However, the question that arises is that, should one leave his money tucked away in the bank or plough it into the stock market where the potential for higher returns is greater but the chances of losing money is higher? Deciding where to invest depends on one`s attitude towards risk (one`s capacity to take risk and one`s tolerance towards risk) and the Investment horizon and non-availability of guaranteed-return Investment products. In such a scenario, investing in equity, which Offers returns that are higher than the inflation rate, help to build wealth and to improve the standard of living. India is a developing economy .its Prospering in all spheres. Share market is a compelling determinant of the Economy and the financial situation of a country. Ever since the liberalization, privatization and globalization, the foreign investment in our country is Booming. Share market is a clear indicator of the developing trend prevailing in Our country. Statistics reveal that the trade volume has been increasing Continuously, coupled with the ups and downs which is a nature of share Trading. We are living in an interlinked

world. With the growing volume of Trade, it has become a necessity that people are aware of the intricacies of the Web world.

SENSEX
the benchmark indicator of share trading has more than tripled ever since on line share trading commenced. It has become imperative to be a Participant of this mode of trading.Recently, the crisis in the financial market resulted in global inflation. The shareMarket was a clear indicator of the prevailing prices. Share trading is a way of faster earning and losing money. In the recent years, a volatile market could be witnessed. In the desire to earn money in a quick manner, more and more People have ventured out into share trading. Lack of awareness of many Investors have made them loose lakhs of money in the stock market. Wise plays By many others have made them earn in crores. Where the American NASDAQ in the commanding position, hongkong, Tokyo etc are some of the asian exchanges being quoted repeatedly when it comes to news about the share market. SENSEX is not far behind .Indian bourses are also often quoted. Electronic trading or online trading eliminates the need for physical tradingFloors. Brokers can trade from their offices ,using fully automated screen basedprocesses. Their workstations are connected to a stock

exchanges central Computer via satellite using Very Small Aperture Terminus (VSATs). The orders placed by brokers reach the exchanges central computer and are matched electronically.

About Reliance Money

Reliance money is a part of the reliance Anil Dhirubhai Ambani Group and is Promoted by Reliance capital, the fastest growing private sector financial services company in India, ranked amongst the top 3 private sector financial companies in terms of net worth. Reliance money is a comprehensive financial solution provider that enables you to carry out trading and investment activities in a secure, costEffective and convenient manner. Through reliance money, you can invest in a wide range of asset classes from Equity, Equity and commodity Derivatives, Mutual Funds, insurance products, IPOs to availing services of Money Transfer & Money changing. Reliance Money offers the convenience of on-line and offline transactions through a variety of means, including its Portal, Call & Transact, Transaction Kiosks and at its network of affiliates. Some key steps of the company that are as.. Success is a journey, not a destination. If we look for examples to prove this quote then we can find many but there is none like that of Reliance Money.

The company which is today known as the largest financial service provider of India. Success sutras of Reliance Money: The success story of the company is driven by 9 success sutras adopted by it Namely Trust, Integrity, Dedication, Commitment, Enterprise, Hard work, Home work, Team work play, Learning and Innovation, Empathy and Humility and last but not the least its the Network . These are the values that bind success with Reliance Money. Vision of Reliance Money To achieve & sustain market leadership, Reliance Money shall aim for complete customer satisfaction, by combining its human and technological resources, to provide world class quality services. In the process Reliance Money shall strive to meet and exceed customer's satisfaction and set industry standards.

Mission statement: Our mission is to be a leading and preferred service provider to our customers, and we aim to achieve this leadership position by building an innovative, enterprising , and technology driven organization which will set the highest standards of service and business ethics.

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Equity
Reliance Money offers its clients competitively priced Equity broking, PMS and Portfolio Advisory Services. Trading execution assistance provided to clients. In addition Reliance Money provides independent and unbiased view on markets along with trading strategies and entry / exit points for taking an informed decision.

Mutual Funds
A mutual fund is a professionally managed fund of collective investments that Collects money from many investors and puts it in stocks, bonds, short-term money market instruments, and/or other securities. Reliance Money offers dedicated research & expert advice on Mutual Funds. Mutual funds are considered to have low risk factors owing to diversification of assets into various sectors and Scripts or instruments within. A mutual fund is a common pool of money into which investors place their contributions that are to be invested in acoordance with a stated objective. Then the ownership of the fund is just joint and mutual; the fund belongs to all investors.

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Life-Insurance
Reliance Money assists its clients in choosing a customized plan which will secure the familys future and their expenses post-retirement. Clients can choose from different plans of almost all Insurance Companies where they can invest their money. Clients can choose from products and services that channelise their savings and protect their needs while guaranteeing security and returns for life. A team of experts will suggest the best Insurance scheme which suits the clients requirement.

General Insurance
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General Insurance is all about protecting against all kind of insurable risks. Reliance Money assists you in areas of Health insurance, Travel insurance, Home insurance and Motor insurance.

Commodities
A single platform to trade on both the major commodity exchanges i.e. NCDEX and MCX. In addition In-house research desk shall provide research reports on all major commodities which shall enable in getting views for trading and diversify clients holdings. Trade Execution assistance is also provided to clients.

Structured Products, Art Investments

Structured Products is a new class of financial products for investors apprehensive of increased volatility in stock markets. Specially designed products could include Equity, Index-linked in nature, Real Estate Funds, Art Funds, Overseas Investments and Infrastructure Investments.

Tax Planning
With a view to provide complete wealth management solutions, Reliance Moneys Wealth management offerings include tax related services like: Tax Planning & advisory Filing Tax returns for individuals

Real Estate Advisory Services

Broking Model for lease/rent and buy/sell of property

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Property Valuation Real-estate Consulting Corporate earnings model, Lease rentals, etc.

Offshore Investments
Reliance Money provides a unique opportunity to invest in international financial Markets through the online platform which includes different product ranges.

Reliance ADA Group

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WORKING OF RELIANCE MONEY

COMPETITORS OF RELIANCE MONEY

Reliance Money serves a vast range of all financial products like advisory services, Mutual funds, Demat Accounts, Insurances, Gold etc, so all the companies who offer theseservices are the competitors of the Reliance Money. There are many competitors for Reliance Money on this basis and almost all of them offer the services which Reliance Money offers. Few Major competitors are: India bulls Anand Rathi securities

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ICICI Securities. Sharekhan Kotak Securities India Infoline India Infoline Ltd India Infoline Ltd is listed on both the leading stock exchanges in India, viz. the Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE). The India Infoline group, comprising the holding company, India Infoline Ltd and its subsidiaries, straddles the entire financial services space with offerings ranging from Equity research, Equities and derivatives trading, Commodities trading, Portfolio Management Services, Mutual Funds, Life Insurance, Fixed deposits and other small savings instruments to loan products and Investment banking. India Infoline also owns and manages the websites. India Infoline Limited is listed on both the leading stock exchanges in India, viz. the Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE) and is also a member of both the exchanges. It is engaged in the businesses of Equities broking, Wealth Advisory Services and Portfolio Management Services. It offers broking services in the Cash and Derivatives segments of the NSE as well as the Cash segment of the BSE. It is registered with NSDL as well as CDSL as a depository participant, providing a one-stop solution for clients trading in the equities market. It has recently launched its Investment banking and Institutional Broking business. India Infoline Securities Pvt Ltd India Infoline Securities Pvt Ltd is a 100% subsidiary of India InfolineLtd, which is engaged in the businesses of Equities broking and Portfolio Management Services. It offers broking services in the Cash and Derivatives segments of the NSE as well as the Cash segment of the BSE. Sharekhan Securities Sharekhan was created when SSKI Investor Services Pvt. Ltd., a company in the

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securities and equities segment decided to harness the power of the Internet and offer services to its customers through an online stock trading portal. Sharekhan brings and provides a userfriendly online trading facility. They also have an extensive all-India ground network of franchisees across the country. The company offers its services through a combination of online and offline channels. The online model comprises a portal, chat facilities, and 'speed trade' terminals. And the offline model uses a combination of an IVR infrastructure and a team of customer agents to receive orders over the telephone. ICICI Securities ICICI Securities, A subsidiary of ICICI Bank, was set up in February 1993 to provide investment-banking services to investors in India. As on date ICICI Bank holds 99.9% of the share capital of ICICI Securities. ICICI Securities Limited is Indias leading full service investment bank with a dominant position in all segments of its operations Corporate Finance Fixed Income and Equities. Kotak Securities: Kotak Securities Limited, a 100% subsidiary of Kotak Mahindra Bank, is the stock broking and distribution arm of the Kotak Mahindra Group. Kotak Mahindra is one of India's leading financial institutions, offering complete financial solutions that encompass every sphere of life. From commercial banking, to stock broking, to mutual funds, to life insurance, to investment banking, the group caters to the financial needs of individuals and corporate. Kotak also offers stock broking through the branch and Internet, Investments in IPO, Mutual funds and Portfolio management service. The Kotak Mahindra Group

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Kotak Mahindra is one of India's leading financial conglomerates, offering complete financial solutions that encompass every sphere of life. From commercial banking, to stock broking, to mutual funds, to life insurance, to investment banking, the group caters to the financial needs of individuals and corporates. The group has a net worth of over Rs. 5,609 crore, employs around 17,100 people in its various businesses and has a distribution network of branches, franchisees, representative offices and satellite offices across 344 cities and towns in India and offices in New York, London, Dubai, Mauritius and Singapore. The Group services around 3.6 million customer accounts. Kotak Securities has 195 branches servicing more than 2, 20,000 customers and coverage of 231 Cities. Kotaksecurities.com, the online division of Kotak Securities Limited offers Internet Broking services and also online IPO and Mutual Fund Investments. Indiabulls: Indiabulls is Indias leading Financial Services and Real Estate Company having over 640 branches all over India. Indiabulls serves the financial needs of more than 4,50,000 customers with its wide range of financial services and products from securities, derivatives trading, depositary services, research & advisory services, consumer secured & unsecured credit, loan against shares and mortgage & housing finance. Indiabulls Financial Services Ltd is listed on the National Stock Exchange, Bombay Stock Exchange.

Stock exchange
A stock exchange , share market or bourse is a corporation or mutual organization which provides facilities for stock brokers and trader , to trade company stocks and other securities .Stock exchanges also provide facilities for the issue redemption, as well as, other financial instruments and capital events including the payment of income and dividends . The securities traded on
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a stock exchange include: shares issued by companies ,unit trusts and other pooled investment products and bonds .To be able to trade a security on a certain stock exchange, it has to be listed . Usually there is a central Location at least for Recordkeeping, but trade is less and less linked to such a physical place, as Modern markets are electronic networks, which gives them advantages of speed And cost of transactions. Trade on an exchange is by definition done in the Primary market and subsequent trading is done in the secondary market. Supply And demand in stock markets is driven by various factors which, as in free markets, Affect the price of stocks (see stock valuation).There is usually no compulsion to Issue stock via the stock exchange itself, nor must stock be subsequently traded On the exchange. Such trading is said to be off exchange or over-theCounter. This is the usually way that bonds are traded. Increasingly more and More stock exchanges are part of a global market for securities.

[A]. The role of the stock exchange

Raising capital for businesses .The stock exchange provides companies with the facility to raise capital for expansion through selling shares to the investing public. Mobilizing savings for investment .When people draw their savings and invest in shares, it leads to a more rational allocation of resources because funds, which could have been

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consumed, or kept in idle deposits with banks are mobilized and redirected to promote business activity with benefits for several economic growth and higher productivity levels.

[B]. Facilitate company growth

Companies view acquisitions as an opportunity to expand product lines , increase distribution channels, hedge against volatility, increase its market share, or acquire other necessary business assets. A takeover bid or a merger agreement through the stock market is one of the simplest and most common ways to company growing by acquisition or fusion.

[C]. Redistribution of wealth

By giving a wide spectrum of people a chance to buy shares and therefore become part-owners (shareholders) of profitable enterprises the stock market helps to reduce large income inequalities .Both casual and professional stock investors through stock price rise and dividends get a chance to share in the profits of promising business that were set up by other people.

[D]. Corporate governanceBy having a wide and varied scope of owners, companies generally tend to improve on their management standards and efficiency in order to satisfy the demands of these shareholders and the more stringent rules for public corporations by public stock exchange and the government. Consequently, it is alleged that public companies (companies that are

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owned by shareholders who are members of the general public and trade shares on public exchange) tend to have better management records than privately-held companies (those companies where shares are not publicly traded, often owned by the company founders and / or their families and heirs , or otherwise by a small group of investors) . However, some well-documented cases are known where it is alleged that their has been considerable slippage in corporate governance on the part of some public companies.

[E]. Creates investment opportunities for small investors

As opposed to their businesses that require huge capital outlay , investing in shares is open to both the large and small stock investors because a person buys the number of shares they can afford . Therefore the Stock Exchange provides an extra source of income to small savers.

[F]. Government raises capital for development projects

Governments at various levels may decide to borrow money in order to finance infrastructure projects such as sewage and water treatment works or housing estates by selling another category of securities known as bonds .These bonds can be raised through the Stock Exchange whereby members of the public buy them , thus loaning money to the government . The issuance of such municipal bonds can obviate the need to directly tax the citizens in order to finance development,although by securing such bonds with the full faith and credit of the government instead of with collateral , the result is that the

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government must tax the citizens or otherwise raise additional funds to make any regular coupon payments and refund the principal when the bonds mature.

[G]. Barometer of the economy

At the stock exchange, share prices rise and fall depending, largely, on market forces . Share prices rise tend to rise or remain stable when companies and the economy in general show signs of stability and growth .An economic recession, depression, or financial crisis could eventually lead to a stock market crash. Therefore the movement of the general trend in the economy .The listing requirements are the set of conditions imposed by a given stock exchange upon companies that want to be listed on that exchange .Such conditions sometimes include minimum number of shares outstanding , minimum market capitalization and minimum annual income.

Basic things about share trading

Ever come across words like Sensex, Nifty, correction, rally et al? Well, a regular reader of business newspapers must have come across these and a host of other terms that describe the stock market activities. You must have also come across research reports from brokerage houses that talk of buying, selling and holding of a company's share. Let us go through a few of these terms used in routine stock market parlance.

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[1]Sensex
It is an index that represents the direction of the companies that are traded on the Bombay Stock Exchange, BSE. The word Sensex comes from sensitive index. The Sensex captures the increase or decrease in prices of stocks of companies that it comprises. A number represents this movement. Currently, all the 30 stocks that make up the Sensex have reached a value of 14,355 points. .

[2] Nifty

It is the Sensex's counterpart on the National Stock Exchnage, NSE. The only difference between the two indices (the Sensex and Nifty) is that the Nifty comprises of 50 companies and hence is more broad-based than the Sensex. Having said that one must remember that the Sensex is the benchmark that represents Indian equity markets globally. The Nifty 50 or the S&P CNX Nifty as the index is officially called has all the 30 Sensex stocks.The NSE Nifty functions exactly like (explained above) the BSE Sensex.

[3] Bull
A particular kind of investor who purchases shares in the expectation that the market price of that company's share will increase. S/he sells her/his stock at a higher price and pockets the profit. Simply put, the bulls buy at a lower price and sell at a higher price.
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For instance, if a bull buys a company's share at Rs 100, s/he would prefer selling the same stock at Rs 120 or any price higher than Rs 100 to make a profit. Usually, a bull buys first at a lower price and sells later at a price higher than her/his cost of purchase. Bulls are happy when the markets (the Sensex and Nifty) move upwards. A falling market takes bulls into hibernation.

[4] Bear
Bull's counterpart is the bear. A bear sells stocks first that s/he owns or borrows from, say a friend, and then purchases the same quantity of shares at a lower price. The best way to invest in the stock market If a bear sells first, say 100 shares of Ranbaxy at Rs 400, and later purchases the same number of shares at Rs 375, then her/his profit is Rs 25 (400-375) per share. This way s/he has got back the 100 shares of Ranbaxy and simultaneously made a profit of Rs 2500. The shares can later be returned to the bear's friend if s/he had borrowed the same from a friend.

There are bears in the market that sell shares first without actually owning them unlike in the above example. Such selling is called naked short selling or going short on a stock. Bears are happy in a falling market. While individual investors can engage in selling first and buying later (also referred to as short selling), mutual funds and foreign institutional investors are not allowed this luxury in India yet.

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[5] Squaring off

A process whereby investors/traders buy or sell shares and later reverse their trade to complete a transaction is called squaring off of a trade. Indian equity markets remain open between 9 am and 3:30 pm normally (At times there are sun outages when satellites fail to link with ground infrastructure of the two exchanges (the servers where buy and sell orders are matched). During these times the trading period is extended till 4:15 pm to compensate for the time lost in between). If you purchase 50 shares of say Infosys and sell them later before the market closes then you have squared off your buy position.

Do and don'ts for stock market investments

Similarly, if you sell 100 shares of Maruti and purchase them later then you have squared off your sell position. Equity market rules in Indian allow investors/traders to engage in day trading. Day trading is a mechanism whereby investors/traders can buy, say 100 shares of a company as soon as the BSE, NSE opens (the working hours are 9 am to 3:30 pm in normal times) and sell the same amount of shares later (bulls) before the two stock exchanges close. However, a stock bought on the BSE cannot be sold on the NSE and vice-versa. Similarly investors/traders can also sell first and buy later (bears) during the course of the day to square off their sell positions.

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[6] Rally
The word suggests the gain made by the Sensex or Nifty during the course of the day. If such gains are made on a regular basis then market participants like investors, brokers etc call it as a market rally. If the Sensex moves from 14,000 points to 15,000 points in a span of say 14 or for that matter 20 trading sessions (the stock markets remain closed on Saturdays, Sundays and other bank holidays) then the phenomenon is referred to as a rally. Bulls are always said to be active during a market rally.

[7] Crash
As the word suggests, crash refers to a fall in the value of Sensex and Nifty. In the first three trading days of this week(February 12-14) alone the Sensex had crashed by more than 700 points. The Sensex then had plummeted from around 14,700 levels to around 14,000 points. This sudden and violent 700-point fall is referred to as the crash or market crash.

How to make a crore in the stock market

Bears are said to be active and happy during the market crash as their style of trading (sell first and buy later) helps them make good money during a crash.

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[8] Correction
A correction (or a measured fall) in the Sensex and Nifty takes place when these indices rise for a few days and then retrace or shave off some of these gains. Say if the markets rally from 13,000 to 14,000 points in 10 days and the again fall to 13,700 points in the next five-six days then this action is termed as a market correction. It is like a woman/man resting for some time after running a long distance race. Like human beings the market too needs to take rest after a smart rally. Market experts consider such corrections healthy because during this period the ownership of shares moves from weak hands (shortterm investors) to strong hands (long-term investors). Corrections are generally considered as signs of strength after which the markets (the Sensex and Nifty) gets once again poised for a further rally.

[9] Bonus shares

These are the free shares that a listed company gives its shareholders. A bonus is declared after a discussion amongst the board members that make up the management of a company. A bonus issue is looked upon as a way of rewarding shareholders. For instance, let us take a company A that has made a profit of Rs 100 crore in the financial year 2007 (April 1, 2006 to March 31, 2007). Out of this amount the company may need Rs 50 crore for say buying machinery or constructing a new warehouse. And the remaining Rs 50 crore the company puts into its reserve pool or idle cash that the company has no plans to spend. It can then issue bonus shares out of these Rs 50 crore.
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When a company declares a bonus issue it converts this idle cash into shares that are then distributed amongst its shareholders. This process is called capitalising of reserves. A bonus is usually declared as a ratio. A bonus issue in the ratio of 1:1 means you will get one free share for every one share of the company you own. A 2:1 bonus issue (or two for every one held) means you will get two free shares of a company for every one that you own. Similarly, a 5:1 bonus issue will give you five free shares for every one share that you own.

[10] Dividend
It is again a way of rewarding a company's shareholders. A dividend is generally issued as a percentage of the face value of a share. Face value is the nominal price of a company's share. A share can have different face values like Re 1, Rs 2, Rs 5, Rs 10 or Rs 100. An 80% dividend on a share of face value Rs 2 (Rs 1.6) will always be less than a dividend of 20% declared on share of face value Rs 10 (Rs 4). Like bonus shares, dividend amount also comes from a company's free cash reserves.

[11] Book closure date

This is the date on which a company closes its books for business after it announces a bonus or dividend. The company's registrar keeps a track of who owns how many shares of that particular company. Any investor having shares in his/her demat account before this date becomes eligible for the bonus issue or the dividend declared.

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Say a company A announces a 1:1 bonus issue and the book closure date is February 28, 2007. If you don't own this company's share and want to avail of the bonus offer then you must not only buy this share before February 28 but also make sure that the number of shares purchased by you are transferred to your account from the seller before this date. If the ownership of shares is reflected in your account after February 28 then you will not get any bonus shares. The same is also true for dividend announcements. This just sums up a few terms used by stock market participants. We shall see some more next week.

[12] Stock option

It is a specific type of option with a stock as the underlying instrument (the security that the value of the option is based on). Thus it is a contract to buy (known as a "call" contract) or sell (known as a "put" contract) shares of stock, at a predetermined or calculable (from a formula in the contract) price. It is having the Rights to purchase a corporation's stock at a specified price. Infact There are two definitions of stock options. {A}. The right to purchase or sell a stock at a specified price within a stated period. Options are a popular investment medium, offering an opportunity to hedge positions in other securities, to speculate on stocks with relatively little investment, and to capitalize on changes in the market value of options contracts themselves through a variety of options strategies.

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{B}. A widely used form of employee incentive and compensation.In some Companies, Stock options constitute part of remuneration. Employee stock options are stock options for the company's own stock that are often offered to upper-level employees as part of the executive compensation package. An employee stock option is identical to a call option on the company's stock, with some extra restrictions.

Online Stock Trading

It is a recent way of buying and selling stocks. Now you can buy and sell any stock over the Internet for a low price and you dont need to call up a broker. You can buy any stock and sell any stock and it doesnt take much to get started. All you need is a brokerage account. A broker that I use is Scottrade http://www.scottrade.com/ and you can start an account with them for $500 and their commissions are only $7, so they are not expensive at all. Once you have setup a brokerage account you then need to choose an investment method and then research different companies and then buy stock in the ones that you feel will go up because they are good sound companies. So as you can see there are several benefits to online stock trading but lets recap. With online stock trading all you need is $500 to open a brokerage account, the brokerage commissions are low at Scottrade theyre only $7 and you can buy and sell your stocks from your home computer anytime that the stock market is open. Well now that you know that you can do online stock trading with a minimal investment you should get started today and then start
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learning about the stock market and choose the stocks you want to invest in. One say's "I bought "XYZ Company" at Rs.2200 and immediately after I bought the stock price dropped to Rs.2000." I feel sad. Another comes with a different version "I sold "XYZ Company" at Rs.2000 and it went up to Rs.2400 same evening" I made an imaginary loss of Rs.400 per share. Solution: You can buy more shares @ Rs.2000 and reduce your overall buying cost. This has to be done only if believe in the fundamentals, management and the future prospects of the company. To do this you need to keep money ready.whatever money you have and want to invest, split it into two parts. Then keep 50% cash aside, only invest with other 50%.So if need to buy more of any stock when the price falls you have ready cash. Also now if you have 200 shares of XYZ Company 100 @ Rs.2200 and 100 @ Rs.2000.Then the price goes up to Rs.2400. Sell only 100 of the shares.Then if the price further shot up, you have some shares to sell And participate in the rally to make money. Next, You sold the share and the price went up. The solution to this is never sell all the shares at one time. Sell only 50% of your shares. So if he price goes up later you still have the other 50% to sell and make profit. The golden Rule is to first do your own analysis of the stock before investing and buy on tips. Also invest only in companies which declare dividends every year. To be sure that you are not investing in loss making companies. Every Market expert advise to do your stock analysis before investing in the stock market. But nobody tells you how.

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Well in my next article I will write about how to do stock analysis using various tools such as financial ratios and by checking the track records of the companies you plan to invest in. P.S: If you are not Indian then replace the Rs. into your own local currency to understand the article

IMPORTANT INDICES OF NSE A. S&P CNX Defty

Almost every institutional investor and off-shore fund enterprise with an equity exposure in India would like to have an instrument for measuring returns on their equity investment in dollar terms. To facilitate this, a new index the S&P CNX Defty-Dollar Denominated S&P CNX Nifty has been developed. S&P CNX Defty is S&P CNX Nifty, measured in dollars.

Salient Features
Performance indicator to foreign institutional investors, off-shore funds, etc. Provides an effective tool for hedging Indian equity exposure. Impact cost of the S&P CNX Nifty for a portfolio size of Rs.2 crore is 0.16% Provides fund managers an instrument for measuring

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returns on their equity investment in dollar terms.

Calculation of S&P CNX Defty

Computations are done using the S&P CNX Nifty index calculated on the NEAT trading system of NSE and INR-USD exchange rate that is based on the real time polled data feed. S&P CNX Defty = S&P CNX Nifty at time t * Exchange rate as on base date Exchange rate at time t

Calculation of closing value of S&P CNX Defty

Closing value of S&P CNX Defty is computed by considering average of INR-USD polled data values (exchange rate) of last 30 minutes of the market. Closing value of = Closing value of S&P CNX Nifty * Exchange rate as on base date S&P CNX Defty Average of exchange rate of last 30 minutes of the market

Specifications of S&P CNX Defty:

Base date: 03 November 1995 Base S&P CNX Defty Index Value: 1000 S&P CNX Nifty Value as on Base date: 1000 Exchange rate as on base date: 34.65

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Adjustment factor as on Base date:1.00

B. India Index Services & Products Ltd. (IISL)

India Index Services & Products Ltd. (IISL) is a joint venture between the National Stock Exchange of India Ltd. (NSE) and CRISIL Ltd. (formerly the Credit Rating Information Services of India Limited). IISL has been formed with the objective of providing a variety of indices and index related services and products for the capital markets. IISL has a licensing and marketing agreement with Standard and Poor's (S&P), the world's leading provider of investible equity indices, for co-branding IISL's equity indices.

C.S&P CNX Nifty

S&P CNX Nifty is a well diversified 50 stock index accounting for 22 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 specialised company focused upon the index as a core product. IISL has a Marketing and licensing agreement with Standard & Poor's (S&P), who are world leaders in index services.

34

The total traded value for the last six months of all Nifty stocks is approximately 52% of the traded value of all stocks on the NSE Nifty stocks represent about 63% of the Free Float Market Capitalization as on Dec 31, 2009. Impact cost of the S&P CNX Nifty for a portfolio size of Rs.2 crore is 0.10% S&P CNX Nifty is professionally maintained and is ideal for derivatives trading

From June 26, 2009, S&P CNX Nifty is computed based on free float methodology.

D.CNX Nifty Junior

The next rung of liquid securities after S&P CNX Nifty is the CNX Nifty Junior. It may be useful to think of the S&P CNX Nifty and the CNX Nifty Junior as making up the 100 most liquid stocks in India. As with the S&P CNX Nifty, stocks in the CNX Nifty Junior are filtered for liquidity, so they are the most liquid of the stocks excluded from the S&P CNX Nifty. The maintenance of the S&P CNX Nifty and the CNX Nifty Junior are synchronised so that the two indices will always be disjoint sets; i.e. a stock will never appear in both indices at the same time. Hence it is always meaningful to pool the S&P CNX Nifty and the CNX Nifty Junior into a composite 100 stock index or portfolio.

CNX Nifty Junior represents about 12 % of the Free Float Market Capitalization as on Dec 31, 2009.

35

The traded value for the last six months of all Junior Nifty stocks is approximately 15% of the traded value of all stocks on the NSE Impact cost for CNX Nifty Junior for a portfolio size of Rs.50 lakhs is 0.13%
From May 04, 2009, CNX Nifty Junior is computed based on free float methodology.

E.CNX100
CNX 100 is a diversified 100 stock index accounting for 35 sector of the economy. CNX 100 is owned and managed by India Index Services & Products Ltd. (IISL). Which is a joint venture between CRISIL & NSE. IISL is Indias first specialized company focused upon the index as a core products. IISL has a licensing & marketing agreement with Standard & Poors (S&P), who are leaders in index services.

CNX 100 represents about 73.3% of the Free Float market capitalization as on Sept 30, 2009. The average traded value for the last six months of all CNX100 stocks is approximately 70.1 % of the traded value of all stocks on the NSE. Impact cost for CNX 100 for a portfolio size of Rs. 3 crore is 0.18%.

From June 26, 2009, CNX 100 is computed based on free float methodology.

F. S&P CNX 500

36

The S&P CNX 500 is Indias first broadbased benchmark of the Indian capital market. The S&P CNX 500 represents about 92.57% of total market capitalisation and about 91.17% of the total turnover on the NSE as on Sept 30, 2009. The S&P CNX 500 companies are disaggregated into 72 industry indices viz. S&P CNX Industry Indices. Industry weightages in the index reflect the industry weightages in the market. For e.g. if the banking sector has a 5% weightage in the universe of stocks traded on NSE, banking stocks in the index would also have an approx. representation of 5% in the index.

G. CNX Midcap
The medium capitalised segment of the stock market is being increasingly perceived as an attractive investment segment with high growth potential. The primary objective of the CNX Midcap Index is to capture the movement and be a benchmark of the midcap segment of the market. Method of Computation CNX Midcap is computed using free float market capitalization weighted method w.e.f. February 26, 2010, wherein the level of the index reflects the free float market value of all the stocks in the index relative to a particular base period. The method also takes into account constituent changes in the index and importantly corporate actions such as stock splits, rights, etc without affecting the index value. Base Date and Value The CNX Midcap Index has a base date of Jan 1, 2003 and a base value

37

of 1000 Criteria for Selection of Constituent Stocks The constituents and the criteria for the selection judge the effectiveness of the index. Selection of the index set is based on the following criteria :

All the stocks, which constitute more than 5% market capitalization of the universe (after sorting the securities in descending order of market capitalization), shall be excluded in order to reduce the skewness in the weightages of the stocks in the universe. After step (a), the weightages of the remaining stocks in the universe is determined again. After step (b), the cumulative weightage is calculated.After step (c) companies which form part of the cumulative percentage in ascending order unto first 75 percent (i.e. upto to 74.99 percent) of the revised universe shall be ignored. After, step (d), all the constituents of S&P CNX Nifty shall be ignored. From the universe of companies remaining after step (e) i.e. 75th percent and above, first 100 companies in terms of highest market capitalization, shall constitute the CNX Midcap Index subject to fulfillment of the criteria mentioned below.

Trading Interest All constituents of the CNX Midcap Index must have a minimum listing record of 6 months. In addition, all candidates for the Index are also evaluated for trading interest, in terms of volumes and trading frequency.

38

Financial Performance All companies in the CNX Midcap Index have a minimum track record of three years of operations with a positive net worth. Others A company which comes out with a IPO will be eligible for inclusion in the index, if it fulfills the normal eligibility criteria for the index for a 3 month period instead of a 6 month period.
* CNX Midcap Index was computed using market capitalization weighted method from the launch date till February 25, 2010.

H. Nifty Midcap 50
The medium capitalized segment of the stock market is being increasingly perceived as an attractive investment segment with high growth potential. The primary objective of the Nifty Midcap 50 Index is to capture the movement of the midcap segment of the market. It can also be used for index-based derivatives trading.
Method of computation

Nifty Midcap 50 is computed using free float market capitalisation weighted method, wherein the level of the index reflects the total market value of all the stocks in the index relative to a particular base period. The method also takes into account constituent changes in the index and importantly corporate actions such as stock splits, rights, etc without affecting the index value. Base Date and Value The Nifty Midcap 50 Index has a base date of Jan 1, 2004 and a base value of 1000.

39

Criteria for Selection of Constituent Stocks The constituents and the criteria for the selection judge the effectiveness of the index. Selection of the index set is, inter alia, based on the following criteria:

Stocks with average market capitalization ranging from Rs.1000 Crore to Rs.5000 Crore at the time of selection. Stocks which are not part of the derivatives segment are excluded. Stocks which are forming part of the S&P CNX NIFTY index are excluded. Other statistics: Nifty Midcap 50 stocks represent about 6.50 % of the total market capitalization as on March 31, 2010. The traded volume for the last six months of all Nifty Midcap 50 stocks is approximately 10% of the traded volume of all stocks on the NSE.

* Nifty Midcap 50 Index was computed using market capitalization weighted method from the launch date till February 25, 2010

I. CNX IT Index
Information Technology (IT) industry has played a major role in the Indian economy during the last few years. A number of large, profitable Indian companies today belong to the IT sector and a great deal of investment interest is now focused on the IT sector. In order to have a good benchmark of the Indian IT sector, IISL has developed the CNX IT sector index. CNX IT provides investors and market intermediaries with an appropriate benchmark that captures the
40

performance of the IT segment of the market. Companies in this index are those that have more than 50% of their turnover from IT related activities like IT Infrastructure , IT Education and Software Training , Telecommunication Services and Networking Infrastructure, Software Development, Hardware Manufacturers, Vending, Support and Maintenance. The total traded value for the last six months of CNX IT Index stocks is approximately 83.39% of the traded value of the IT sector. CNX IT Index stocks represent about 80.33% of the total market capitalization of the IT sector as on March 31, 2009. The total traded value for the last six months of all CNX IT Index constituents is approximately 8.59% of the traded value of all stocks on the NSE. CNX IT Index constituents represent about 6.97% of the total market capitalization as on March 31, 2009. Methodology The index is a market capitalisation weighted index with its base period being December 1995 and the base date and base value being January 1, 1996 and 1,000 respectively. The Base Value of the index is being revised from 1000 to 100 w.e.f. 28 May 2004. Selection Criteria Selection of the index set is based on the following criteria : Company's market capitalisation rank in the universe should be less than 500. Company's trading frequency should be at least 90% in the last six months.

41

 Company should have a positive networth. A company which comes out with a IPO will be eligible for inclusion in the index, if it fulfills the normal eligibility criteria for the index for a 3 month period instead of a 6 month period.

S&P CNX Industry Indices

S&P CNX 500 Equity Index is desegregated into 72 Industry sectors which are separately maintained by IISL. The industry indices are derived out of the S&P CNX 500 and care is taken to see that the industry representation in the entire universe of securities is reflected in the S&P CNX 500. e.g., if in the entire universe of securities, Banking sector has a 5% weightage, then the Banking sector (as determined by the Banking stocks in S&P CNX 500) would have a 5% weightage in the S&P CNX 500. The Banking sector index would be derived out of the Banking stocks in the S&P CNX 500. The changes to the weightage of various sectors in the S&P CNX 500 would dynamically reflect the changes in the entire universe of securities.

Constituents List of S&P CNX Industry Indices

SR.NO INDICES INDUSTRY NAMES 1 S&P CNX ABRASIVES

2 3

S&P CNX S&P CNX

AIRCONDITIONERS ALUMINIUM

42

4 5 6 7 8

S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX

AUTO ANCILLARIES AUTOMOBILES - 2 AND 3 WHEELERS AUTOMOBILES - 4 WHEELERS BANKS BEARINGS

9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26

S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX

BREW/DISTILLERIES CABLES - TELECOM CASTINGS/FORGINGS CEMENT AND CEMENT PRODUCTS CHEMICALS - INORGANIC CHEMICALS - ORGANIC CHEMICALS - SPECIALITY CIGARETTES COMPRESSORS / PUMPS COMPUTERS - HARDWARE COMPUTERS - SOFTWARE CONSTRUCTION CONSUMER DURABLES CYCLES DETERGENTS DIESEL ENGINES DIVERSIFIED DYES AND PIGMENTS

43

27 28 29 30 31 32 33 34 35 36 37

S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX

ELECTRICAL EQUIPMENT ELECTRODES ELECTRONICS - INDUSTRIAL ENGINEERING FASTNERS FERTILISERS FINANCE FINANCE - HOUSING CNX FINANCIAL INSTITUTION CNX FOOD AND FOOD PROCESSING GEMS, JEWELLERY AND WATCHES"

38 39

S&P CNX S&P CNX

HOTELS GAS

40 41 42 43 44 45 46 47 48 49

S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX

LEATHER AND LEATHER PRODUCTS MEDIA & ENTERTAINMENT METALS MINING MISCELLANEOUS OIL EXPLORATION/PRODUCTION PACKAGING PAINTS PAPER AND PAPER PRODUCTS PERSONAL CARE

44

50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72

S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX S&P CNX

PESTICIDES AND AGROCHEMICALS PETROCHEMICALS PHARMACEUTICALS PLASTIC AND PLASTIC PRODUCTS POWER PRINTING AND PUBLISHING REFINERIES REFRACTORIES SHIPPING SOLVENT EXTRACTION STEEL AND STEEL PRODUCTS SUGAR TEA AND COFFEE TELECOMMUNICATION - EQUIPMENT TELECOMMUNICATION - SERVICES TEXTILE MACHINERY TEXTILE PRODUCTS TEXTILES - COTTON TEXTILES - SYNTHETIC TRADING TRANSMISSION TOWERS TRAVEL AND TRANSPORT TYRES

45

Customised Indices

IISL undertakes development & maintenance of customised indices for clients as well as offers consultancy services for developing indices. Customised indices can be used for tracking the performance of the clients portfolio of stocks vis--vis objectively defined benchmarks, or for benchmarking NAV performance to customised indices. The customised indices can be sub-sets of existing indices or a completely new index. Some of the indices that can be constructed include: Sector Indices Individual Business Group Indices Portfolios Industry Indices
Methodology

Customised indices will be computed as per the methodology specified by the client, if it is not a market capitalisation weighted index.
Maintenance

IISL will maintain the index for an annual fee. A review will be carried out by IISL in consultation with the client to review the specified criteria, number of constituent companies in the Index, and their performance on the selection criteria periodic intervals.
Services to Clients

Reports and other Information will be provided as per clients requirements.

46

List of industries with their symbol and ISIN Code

Constituents list of CNX IT
Company Name Industry Symbol Series ISIN Code

1. CMC Ltd.,COMPUTERS

HARDWARE

CMC

EQ

INE314A01017

2. Projects & Technologies Ltd.,COMPUTERS

SOFTWARE

COREPROTE C

EQ

INE247G01024

3. Educomp Solutions Ltd.,COMPUTERS

SOFTWARE

EDUCOMP

EQ

INE216H01027

4. Financial Technologies (India) Ltd.,COMPUTERS 5. Firstsource Solutions

SOFTWARE

FINANTECH

EQ

INE111B01023

SOFTWARE

FSL

EQ

INE684F01012

Ltd.,COMPUTERS 6. GTL Ltd.,TELECOMMUNICA TION SERVICES GTL EQ INE043A01012

47

7. HCL

Infosystems HARDWARE

HCL-INSYS

EQ

INE236A01020

Ltd. COMPUTERS

8. HCL TechnologiesLtd.,COM PUTERS

SOFTWARE

HCLTECH

EQ

INE860A01027

9. Infosys

Technologies

SOFTWARE

INFOSYSTC H

EQ

INE009A01021

Ltd.,COMPUTERS

10. MindTree Ltd.,COMPUTERS

SOFTWARE

MINDTREE

EQ

INE018I01017

11. Moser

Baer

India HARDWARE

MOSERBAE R

EQ

INE739A01015

Ltd.,COMPUTERS

12. MphasiS Ltd.,COMPUTERS

SOFTWARE

MPHASIS

EQ

INE356A01018

13. Oracle Services

Financial Software

SOFTWARE

OFSS

EQ

INE881D01027

Ltd.,COMPUTERS

48

14. Patni Systems

Computer

SOFTWARE

PATNI

EQ

INE660F01012

Ltd.,COMPUTERS 15. Polaris Software Lab Ltd.,COMPUTERS SOFTWARE POLARIS EQ INE763A01023

16. Rolta Ltd.,COMPUTERS

India

SOFTWARE

ROLTA

EQ

INE293A01013

17. Tata Services

Consultancy

SOFTWARE

TCS

EQ

INE467B01029

Ltd.,COMPUTERS

18. Tech

Mahindra

SOFTWARE

TECHM

EQ

INE669C01028

Ltd.,COMPUTERS 19. Tulip TION Telecom SERVICES TULIP EQ INE122H01019

Ltd.,TELECOMMUNICA

20. Wipro Ltd.,COMPUTERS

SOFTWARE

WIPRO

EQ

INE075A01022

CNXIT Futures

49

A futures contract is a forward contract, which is traded on an Exchange. CNX IT Futures Contract would be based on the index CNX IT index.
Contract Specifications Security descriptor

The security descriptor for the CNX IT futures contracts is: Market type : N Instrument Type : FUTIDX Underlying : CNXIT Expiry date : Date of contract expiry Instrument type represents the instrument i.e. Futures on Index. Underlying symbol denotes the underlying index which is CNXIT Expiry date identifies the date of expiry of the contract
Underlying Instrument

The underlying index is CNX IT.

Trading cycle

CNX IT 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 a 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.
Expiry day

50

CNX IT 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 value of the futures contracts on CNXIT may not be less than Rs. 2 lakhs at the time of introduction. The permitted lot size for futures contracts & options contracts shall be the same for a given underlying or such lot size as may be stipulated by the Exchange from time to time.
Price steps

The price step in respect of CNX IT futures contracts is Re.0.05.

Base Prices

Base price of CNX IT 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 CNX IT 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.

51

Quantity freeze
Orders which may come to the exchange as quantity freeze shall be such that have a quantity of more than 15000. 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 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 non-availability of turnover / exposure limit. In all other cases, quantity freeze orders shall be cancelled by the Exchange.
CNXIT Options

An option gives a person the right but not the obligation to buy or sell something. An option is a contract between two parties wherein the buyer receives a privilege for which he pays a fee (premium) and the seller accepts an obligation for which he receives a fee. The premium is the price negotiated and set when the option is bought or sold. A person who buys an option is said to be long in the option. A person who sells (or writes) an option is said to be short in the option. The options contracts are European style and cash settled and are based on the CNX ITindex.
Contract Specifications Security descriptor

The security descriptor for the CNX IT options contracts is: Market type : N Instrument Type : OPTIDX
52

Underlying : CNXIT Expiry date : Date of contract expiry Option Type : CE/ PE Strike Price: Strike price for the contract Instrument type represents the instrument i.e. Options on Index. Underlying symbol denotes the underlying index, which is CNXIT Expiry date identifies the date of expiry of the contract Option type identifies whether it is a call or a put option., CE - Call European, PE - Put European.
Underlying Instrument

The underlying index is CNXIT.

Trading cycle

CNX IT options contracts have a maximum of 3-month trading cycle the near month (one), the next month (two) and the far month (three). On expiry of the near month contract, new contracts are introduced at new strike prices for both call and put options, on the trading day following the expiry of the near month contract. The new contracts are introduced for three month duration.
Expiry day

CNX IT options 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.
Strike Price Intervals

The number of contracts provided in options on index is based on the range in previous days closing value of the underlying index and applicable as per the following table: Index Level Strike Scheme of

53

Interval upto 2000 >2001 upto 4000 >4001 upto 6000 >6000 50 100 100 100

Strike to be introduced 4-1-4 6-1-6 6-1-6 7-1-7

The above strike parameters scheme shall be applicable for all Long terms contracts also.
Trading Parameters Contract size

The value of the option contracts on Nifty may not be less than Rs. 2 lakhs at the time of introduction. The permitted lot size for futures contracts & options contracts shall be the same for a given underlying or such lot size as may be stipulated by the Exchange from time to time.
Price steps

The price step in respect of CNX IT options contracts is Re.0.05.

Quantity freeze

Orders which may come to the exchange as quantity freeze shall be such that have a quantity of more than 15000. 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 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 non-availability of turnover / exposure limit. In all other
54

cases, quantity freeze orders shall be cancelled by the Exchange.

Order type/Order book/Order attributes

Regular lot order Stop loss order Immediate or cancel Spread order
J.CNX Bank Index

The Indian banking Industry has been undergoing major changes, reflecting a number of underlying developments. Advancement in communication and information technology has facilitated growth in internet-banking, ATM Network, Electronic transfer of funds and quick dissemination of information. Structural reforms in the banking sector have improved the health of the banking sector. The reforms recently introduced include the enactment of the Securitization Act to step up loan recoveries, establishment of asset reconstruction companies, initiatives on improving recoveries from Non-performing Assets (NPAs) and change in the basis of income recognition has raised transparency and efficiency in the banking system. Spurt in treasury income and improvement in loan recoveries has helped Indian Banks to record better profitability. In order to have a good benchmark of the Indian banking sector, India Index Service and Product Limited (IISL) has developed the CNX Bank Index. CNX Bank Index is an index comprised of the most liquid and large capitalised Indian Banking stocks. It provides investors and market intermediaries with a benchmark that captures the capital market
55

performance of Indian Banks.The index will have 12 stocks from the banking sector which trade on the National Stock Exchange. The total traded value for the last six months of CNX Bank Index stocks is approximately 96.46% of the traded value of the banking sector. CNX Bank Index stocks represent about 87.24% of the total market capitalization of the banking sector as on March 31, 2009. The total traded value for the last six months of all the CNX Bank Index constituents is approximately 15.26% of the traded value of all stocks on the NSE. CNX Bank Index constituents represent about 7.74% of the total market capitalization as on March 31, 2009.
Methodology

The index is a market capitalization weighted index with base date of January 01, 2000, indexed to a base value of 1000.
Selection Criteria

Selection of the index set is based on the following criteria: 1. Company's market capitalisation rank in the universe should be less than 500 2. Company's turnover rank in the universe should be less than 500 3. Company's trading frequency should be at least 90% in the last six months. 4. Company should have a positive networth. 5. A company which comes out with a IPO will be eligible for inclusion in the index, if it fulfills the normal eligiblity criteria for the index for a 3 month period instead of a 6 month period.

56

Constituents list of CNX Bank

Company name Industry Symbol Series ISIN Code

Axis bank ltd. Bank of Baroda Bank of India Canara Bank HDFC Bank Ltd. ICICI Bank Ltd IDBI Bank Ltd Kotak Mahindra Bank Ltd. Oriental Bank of Commerce

BANKS

AXISBANK

EQ

INE238A01026

BANKS

BANKBARODA

EQ

INE028A01013

BANKS BANKS BANKS

BANKINDIA CANBK HDFCBANK

EQ EQ EQ

INE084A01016 INE476A01014 INE040A01018

BANKS

ICICIBANK

EQ

INE090A01013

BANKS

IDBI

EQ

INE008A01015

BANKS

KOTAKBANK

EQ

INE237A01010

BANKS

ORIENTBANK

EQ

INE141A01014

57

Punjab National Bank State Bank of India Union Bank of India

BANKS

PNB

EQ

INE160A01014

BANKS

SBIN

EQ

INE062A01012

BANKS

UNIONBANK

EQ

INE692A01016

K.CNX FMCG Index

FMCGs (Fast Moving Consumer Goods) are those goods and products, which are non-durable, mass consumption products, available off the shelf. The CNX FMCG Index is a 15 stock Index from the FMCG sector that trade on the National Stock Exchange.
Methodology

The CNX FMCG Index is calculated using the market capitalisation weighted aggregate method. The base period is the month of December 1995, index to a value 1000.
Selection Criteria

Selection of the index set is based on the following criteria : 1. Company's market capitalisation rank in the universe should be less than 500. 2. Company's trading frequency should be at least 90% in the last six months. 3. Company should have a minimum track record of 3 years of operations with a positive networth.

58

4. A company which comes out with a IPO will be eligible for inclusion in the index, if it fulfills the normal eligiblity criteria for the index for a 3 month period instead of a 6 month period.

Constituents list of CNX FMCG

Company Name Industry Symbol Series ISIN Code

Britannia Industries Ltd Colgate Palmolive (India) Ltd. Dabur India Ltd Gillette India Ltd.

FOOD AND FOOD PROCESSING PERSONAL CARE

BRITANNIA

EQ

INE216A01014

PERSONAL CARE

EQ

INE259A01022 D

PERSONAL CARE PERSONAL CARE

DABUR GILLETTE

EQ EQ

INE016A01026 INE322A01010

GlaxoSmithkline FOOD AND FOOD Consumer Healthcare Ltd. Godrej Consumer Products Ltd. Hindustan Unilever Ltd. DIVERSIFIED PERSONAL CARE PROCESSING

GSKCONS

EQ

INE264A01014

GODREJCP

EQ

INE102D01028

HINDUNILVR,

EQ

INE030A01027

59

I T C Ltd. Jyothy Laboratories Ltd. Marico Ltd., Nirma Ltd. Pantaloon Retail (India) Ltd. Procter & Gamble Hygiene & Health Care Ltd. Tata Tea Ltd. United Spirits Ltd.

CIGARETTES PERSONAL CARE

ITC JYOTHYLAB

EQ EQ

INE154A01025 INE668F01031

PERSONAL CARE DETERGENTS MISCELLANEOUS

MARICO NIRMA

EQ EQ

INE196A01026 INE091A01029 INE623B01027

PANTALOONR EQ

PERSONAL CARE

PGHH

EQ

INE179A01014

TEA AND COFFEE

TATATEA

EQ EQ

INE192A01017 INE854D01016

BREW/DISTILLERIES MCDOWELL-N

L.CNX PSE Index

As part of its agenda to reform the Public Sector Enterprises (PSE), the Government has selectively been disinvesting its holdings in public sector enterprises since 1991. With a view to provide regulators, investors and market intermediaries with an appropriate benchmark that captures the performance of this segment of the market, as well as to make available an appropriate basis for pricing forthcoming

60

issues of PSEs, IISL has developed the CNX PSE Index, comprising of 20 PSE stocks. The CNX PSE Index includes only those companies that have over 51% of their outstanding share capital held by the Central Government and/or State Government, directly or indirectly. Methodology The CNX PSE Index is calculated using the market capitalisation weighted aggregate method. The base period is the month of December 1994, index to a value 1000. Selection Criteria Selection of the index set is based on the following criteria : 1. Company's market capitalisation rank in the universe should be less than 500 2. Company's turnover rank in the universe should be less than 500 3. Company's trading frequency should be at least 90% in the last six months 4. Company should have a minimum track record of 3 years of operations with a positive networth. 5. A company which comes out with a IPO will be eligible for inclusion in the index, if it fulfills the normal eligibility criteria for the index for a 3 month period instead of a 6 month period.

Constituents list of CNX PSE

Company NAME BEML Ltd. ENGINEERING BEML EQ INE258A01016 Industry Symbol Series ISIN Code

61

Bharat Electronics Ltd. Bharat Heavy Electricals Ltd. Bharat Petroleum Corporation Ltd. Container Corporation of India Ltd. Engineers India Ltd. GAIL (India) Ltd. Hindustan Petroleum Corporation Ltd. Indian Oil Corporation Mahanagar Telephone Nigam Ltd. Mangalore Refinery & Petrochemicals

ELECTRONICS - INDUSTRIAL BEL

EQ

INE263A01016

ELECTRICAL EQUIPMENT

BHEL

EQ

INE257A01018

REFINERIES

BPCL

EQ

INE029A01011

TRAVEL AND TRANSPORT

CONCOR

EQ

INE111A01017

ENGINEERING

ENGINERSIN

EQ

INE510A01010

GAS

GAIL

EQ

INE129A01019

REFINERIES

HINDPETRO

EQ

INE094A01015

REFINERIES

IOC

EQ

INE242A01010

TELECOMMUNICATION SERVICES

MTNL

EQ

INE153A01019

REFINERIES

MRPL

EQ

INE103A01014

62

Ltd. NMDC Ltd. NTPC Ltd. National Aluminium Co. Ltd. Neyveli Lignite Corporation Ltd. Oil & Natural Gas Corporation Ltd Power Finance Corporation Ltd. Power Grid Corporation of India Ltd. Shipping Corporation of India Ltd. Steel Authority of India Ltd. STEEL AND STEEL PRODUCTS SAIL EQ INE114A01011 SHIPPING SCI EQ INE109A01011 POWER POWERGRID EQ INE752E01010 FINANCIAL INSTITUTION PFC EQ INE134E01011 ,OIL EXPLORATION/PRODUCTION ONGC EQ INE213A01011 POWER NEYVELILIG EQ INE589A01014 MINING POWER ALUMINIUM NMDC NTPC EQ EQ INE584A01023 INE733E01010 INE139A01026

NATIONALUM EQ

63

M. CNX MNC Index

The CNX MNC Index comprises 15 listed companies in which the foreign shareholding is over 50% and / or the management control is vested in the foreign company.

Methodology

The CNX MNC Index is calculated using the market capitalisation weighted method, wherein individual stocks are weighted by market value. The base period is the month of December, 1994 indexed to a value 1000.
Selection Criteria

Selection of the index set is based on the following criteria : 1. Company's market capitalisation rank in the universe should be less than 500 2. Company's trading frequency should be at least 90% in the last six months 3. Company should have a minimum track record of 3 years of operations with a positive networth. 4. A company which comes out with a IPO will be eligible for inclusion in the index, if it fulfills the normal eligibility criteria for the index for a 3 month period instead of a 6 month period.

Constituents list of CNX MNC

64

Company Name

Industry

Symbol

Series

ISIN Code

ABB Ltd.,ELECTRICAL

EQUIPMENT

ABB

EQ

INE117A01022

ACC Ltd.

CEMENT AND CEMENT PRODUCTS

ACC

EQ

INE012A01025

Aban Offshore Ltd.

OIL EXPLORATION/PRODUCTION AUTO ANCILLARIES

ABAN

EQ

INE421A01028

Bosch Ltd.

BOSCHLTD

EQ

INE323A01026

Cairn India Ltd.

OIL EXPLORATION/PRODUCTION

CAIRN

EQ

INE910H01017

Colgate Palmolive (India) Ltd.

PERSONAL CARE

COLPAL

EQ

INE259A01022

Cummins India Ltd.

DIESEL ENGINES

CUMMINSIND

EQ

INE298A01020

Glaxosmithkline Pharmaceuticals Ltd. Hindustan Unilever Ltd. Maruti Suzuki India Ltd.

PHARMACEUTICALS,

GLAXO

EQ

INE159A01016

DIVERSIFIED

HINDUNILVR

EQ

INE030A01027

AUTOMOBILES - 4 WHEELERS

MARUTI

EQ

INE585B01010

65

MphasiS Ltd.

COMPUTERS - SOFTWARE

MPHASIS

EQ

INE356A01018

Oracle Financial Services Software Ltd.

COMPUTERS - SOFTWARE

OFSS

EQ

INE881D01027

Ranbaxy Laboratories Ltd.

PHARMACEUTICALS,

RANBAXY

EQ

INE015A01028

Sesa Goa Ltd.

MINING

SESAGOA

EQ

INE205A01025

Siemens Ltd., , ,EQ,

ELECTRICAL EQUIPMENT

SIEMENS

EQ

INE003A01024

N.CNX Service Sector Index

The Indian Economy has seen structural changes in the last couple of years. According to RBI data, the services sector remained the principal driver of the Indian economy, contributing 55 per cent of the growth of real GDP in 2006-07. The key driver for the growth of the service sector has been industries like IT, Banks, Tourism, Telecommunication etc. Going forward, the service sector will grow manifold mainly on account of the Indias low cost advantage, increasing demand for Customer services and the booming knowledge economy. To capture the performance of the companies belonging to this sector, IISL has developed CNX Service Sector Index to capture the performance of the companies in this sector. The CNX Service Sector Index is 30 stocks index and includes companies belonging to services sector like Computers Software, IT

66

Education and Training, Banks, Telecommunication services, Financial Institutions, Power, Media, Courier, Shipping etc.
Methodology

The CNX Service Sector Index is calculated using the market capitalization weighted aggregate method. The base period is the month of May 1999, index to a value 1000.
Selection Criteria

Selection of the index set is based on the following criteria : 1. Company's market capitalisation rank in the universe should be less than 500 2. Company's turnover rank in the universe should be less than 500 3. Company's trading frequency should be at least 90% in the last six months 4. Company should have a positive networth. 5. A company which comes out with a IPO will be eligible for inclusion in the index, if it fulfills the normal eligiblity criteria for the index for a 3 month period instead of a 6 month period.

Constituents list of CNX Service

Company Name Axis Bank Ltd BANKS AXISBANK Industry Symbol Serie s ISIN Code

EQ EQ

INE238A010 26

Bank of

BANKS

BANKBARO

INE028A010

67

Baroda Bank of India BANKS

DA BANKINDIA

13

EQ EQ EQ EQ EQ

INE084A010 16

Bharti Airtel Ltd. Canara Bank

TELECOMMUNICAT ION - SERVICES BANKS

BHARTIART L CANBK

INE397D010 24 INE476A010 14

GAIL (India) Ltd. HCL Technologies Ltd. HDFC Bank Ltd Housing Development Finance Corporation Ltd. ICICI Bank Ltd. Idea Cellular Ltd. Indian Hotels Co. Ltd.

GAS

GAIL

INE129A010 19

COMPUTERS SOFTWARE

HCLTECH

INE860A010 27

BANKS

HDFCBANK

EQ EQ

INE040A010 18

FINANCE HOUSING

HDFC

INE001A010 28

BANKS

ICICIBANK

EQ EQ EQ

INE090A010 13

TELECOMMUNICAT ION - SERVICES HOTELS

IDEA

INE669E010 16

INDHOTEL

INE053A010 29

68

Infosys Technologies Ltd. Kotak Mahindra Bank Ltd. NTPC Ltd.

COMPUTERS SOFTWARE

INFOSYSTC H

EQ

INE009A010 21

BANKS

KOTAKBAN K

EQ

INE237A010 10

POWER

NTPC

EQ

INE733E010 10

Neyveli Lignite Corporation Ltd. Oracle Financial Services Software Ltd. Power Grid Corporation of India Ltd. Punjab National Bank Reliance Capital Ltd. Reliance Communicati ons Ltd.

POWER

NEYVELILIG EQ

INE589A010 14

COMPUTERS SOFTWARE

OFSS

EQ

INE881D010 27

POWER

POWERGRI D

EQ

INE752E010 10

BANKS

PNB

EQ EQ EQ

INE160A010 14

FINANCE

RELCAPITA L

INE013A010 15 INE330H010 18

TELECOMMUNICAT ION - SERVICES

RCOM

69

Reliance Infrastructure Ltd. Reliance Power Ltd.

POWER

RELINFRA

EQ

INE036A010 16

POWER

POWER

EQ EQ

INE614G010 33

BANKS State Bank of India Tata Communicati ons Ltd. Tata Consultancy Services Ltd. Tata Power Co. Ltd. Tech Mahindra Ltd. Wipro Ltd. COMPUTERS SOFTWARE COMPUTERS SOFTWARE Zee Entertainmen t Enterprises Ltd. MEDIA & ENTERTAINMENT POWER COMPUTERS SOFTWARE TELECOMMUNICAT ION - SERVICES

SBIN

INE062A010 12

TATACOMM

EQ

INE151A010 13

TCS

EQ

INE467B010 29

TATAPOWE R TECHM

EQ EQ EQ EQ

INE245A010 13 INE245A010 13

WIPRO

INE075A010 22

ZEEL

INE256A010 28

70

S&P CNX Industry Indices

S&P CNX 500 Equity Index is desegregated into 72 Industry sectors which are separately maintained by IISL. The industry indices are derived out of the S&P CNX 500 and care is taken to see that the industry representation in the entire universe of securities is reflected in the S&P CNX 500. e.g., if in the entire universe of securities, Banking sector has a 5% weightage, then the Banking sector (as determined by the Banking stocks in S&P CNX 500) would have a 5% weightage in the S&P CNX 500. The Banking sector index would be derived out of the Banking stocks in the S&P CNX 500. The changes to the weightage of various sectors in the S&P CNX 500 would dynamically reflect the changes in the entire universe of securities.

P.CNX Energy Index

Energy sector is universally recognized as one of the most significant inputs for economic growth. The growth of a nation, encompassing all sectors of the economy and all sections of society, is contingent on meeting its energy requirements adequately. As a fast-growing economy, India has become one of the largest energy intensive countries in the World. Energy is a crucial input for India's development process. The need of the hour, therefore, is to meet the energy needs of all segments of India's population in the most efficient and cost-effective manner while ensuring long-term sustainability. IISL has developed CNX Energy Index to capture the

71

performance of the companies in this sector. Energy sector Index will include companies belonging to Petroleum, Gas and Power sub sectors. The CNX Energy Index represents about 87.37% and 80.55% of the market capitalization and turnover of the last six months for the period March 31, 2009 of the Energy Sector Universe respectively . The total traded value for the last six months of all CNX Energy Index constituents is approximately 16.88% of the traded value of all stocks on the NSE. CNX Energy Index constituents represent about 27.35% of the total market capitalization as on March 31, 2009.
Methodology

The index is a market capitalization weighted index with base date of January 1, 2001, indexed to a base value of 1000.
Selection Criteria Selection of the index set is based on the following criteria :

1. Company's market capitalisation rank in the universe should be less

than 500 2. Company's turnover rank in the universe should be less than 500 3. Company's trading frequency should be at least 90% in the last one year. 4. Company should have a minimum track record of 3 years of operations with a positive networth.

72

5. A company, which comes out with an IPO, will be eligible for inclusion
in the index, if it fulfills the normal eligibility criteria for the index for a 3 month period instead of a 6 month period.

Constituents list of CNX Energy S.NO. Company Industry

Name Symbol Series ISIN Code

Bharat Petroleum Corporation Ltd.

REFINERIES

BPCL

EQ

INE029A01011

Cairn India Ltd.

OIL EXPLORATION/PRODUCTION

CAIRN

INE910H01017

GAIL (India) Ltd.

GAS

GAIL

INE129A01019

Indian Oil Corporation Ltd.

REFINERIES

IOC

INE242A01010

NTPC Ltd.

POWER

NTPC

INE733E01010

Oil & Natural Gas Corporation Ltd.

OIL EXPLORATION/PRODUCTION

ONGC

INE213A01011

73

Power Grid Corporation of India Ltd.

POWER

POWERGRID

INE752E01010

Reliance Industries Ltd.

REFINERIES

RELIANCE

INE002A01018

Reliance Power Ltd.

POWER

RPOWER

INE614G01033

10

Tata Power Co. Ltd.

POWER

TATAPOWER

INE245A01013

Q.CNX Pharma Index

Pharmaceuticals sector is one of the key sectors where Indian companies have created a global brand for themselves besides software. Indian companies have taken advantage of the opportunities in the regulated generics market in the western countries and made deep inroads especially in providing low cost equivalents of expensive drugs. Pharma outsourcing into India and low cost Healthcare services are expected to be the key areas of growth in the near future. In addition, the inherent potential of biotechnology has also attracted many new companies and this is also a key growth area for Indian companies. IISL has developed CNX Pharma Index to capture the performance of the companies in this sector. The CNX Pharma Index represents about 74.20% and 82.86 % of the market capitalization and aggregate turnover of the last six months

74

for the period March 31, 2009 of the Pharmaceuticals Sector Universe respectively. The total traded value for the last six months of all CNX Pharma Index constituents is approximately 1.96% of the traded value of all stocks on the NSE. CNX Pharma Index constituents represent about 3.03% of the total market capitalization as on March 31, 2009.
Methodology

The index is a market capitalization weighted index with base date of January 1, 2001, indexed to a base value of 1000.
Selection Criteria

Selection of the index set is based on the following criteria : 1. Company's market capitalisation rank in the universe should be less than 500 2. Company's turnover rank in the universe should be less than 500 3. Company's trading frequency should be at least 90% in the last one year. 4. Company should have a minimum track record of 3 years of operations with a positive networth. 5. A company, which comes out with an IPO, will be eligible for inclusion in the index, if it fulfills the normal eligiblity criteria for the index for a 3 month period instead of a 6 month period.

Constituents list of CNX Pharma

S.NO. Company Name

Industry

Symbol

SERIES ISIN Code

75

Biocon Ltd.

PHARMACEUTICALS

BIOCON

EQ

INE376G01 013

Cipla Ltd.

PHARMACEUTICALS

CIPLA

EQ

INE059A01 026

Divi's Laboratories Ltd.

PHARMACEUTICAL

DIVISLAB

EQ

INE361B01 024

Dr. Reddy's Laboratories Ltd.

PHARMACEUTICALS

DRREDDY

EQ

INE089A01 023

Glaxosmithkline Pharmaceuticals Ltd.

PHARMACEUTICALS

GLAXO

EQ

INE159A01 016

Glenmark Pharmaceuticals Ltd.

PHARMACEUTICALS

GLENMARK

EQ

INE935A01 035

Lupin Ltd.,PHARMACEUTICALS.

PHARMACEUTICALS

LUPIN

EQ

INE326A01 029

Piramal Healthcare Ltd.

PHARMACEUTICALS

PIRHEALTH

EQ

INE140A01 024

Ranbaxy Laboratories Ltd.

PHARMACEUTICALS

RANBAXY

EQ

INE015A01 028

10.

Sun Pharmaceutical Industries Ltd.

PHARMACEUTICALS

SUNPHARMA

EQ

INE044A01 028

R.CNX INFRASTRUCTURE

76

It is well recognized that quality infrastructure is one of the most important necessities for unleashing high and sustained growth. Government outlay for infrastructure has increased significantly over the years. Clearly, infrastructure has been a focus area. Over the years, not only have the outlays for budgetary expenditure towards the infrastructure sector been increasing, but private investment is also being encouraged. Earlier, the emphasis was on bringing in more and more projects, now the emphasis also includes encouraging financial products suited for infrastructure. To meet the financial needs of this public-private partnership, it is necessary to promote standards and raise capital in the most efficient and cost-effective manner while ensuring long-term sustainability. Recognizing the needs of the market, IISL has developed CNX Infrastructure Index to capture the performance of the companies in the infrastructure sector. CNX Infrastructure Index will include companies belonging to Telecom, Power, Port, Air, Roads, Railways, shipping and other Utility Services providers. The 25-stock CNX Infrastructure Index represents about 78.77% of the market capitalization and 77.07% of aggregate turnover of the companies forming part of the Infrastructure Sector Universe for the last six months (period ending March 31, 2009). The total traded value for the last six months of all CNX Infrastructure Index constituents is approximately 25.26% of the traded value of all stocks on the NSE. CNX Infrastructure Index constituents represent about 21.43% of the total market capitalization as on March 31, 2009.
Methodology

77

The index is a market capitalization weighted index with base date of January 1, 2004, indexed to a base value of 1000.
Selection Criteria

Selection of the index set is based on the following criteria: 1. Company's market capitalisation rank in the universe should be less than 500 2. Company's turnover rank in the universe should be less than 500. 3. Company should have a positive Net worth. 4. A company, which comes out with an IPO, will be eligible for inclusion in the index, if it fulfills the normal eligibility criteria for the index for a 3 month period instead of a 6 month period. 5. The constituents should be available for trading in the derivatives segment (Stock Futures & Options market) on NSE.

Constituents list of CNX INFRASTRUCURE

Company Name ABB Ltd., ELECTRICAL EQUIPMENT ABB Industry Symbol Serie s EQ INE117A010 22 ISIN Code

Bharat Heavy Electricals Ltd. Bharti Airtel

ELECTRICAL EQUIPMENT

BHEL

EQ

INE257A010 18

TELECOMMUNICAT

BHARTIART

EQ

INE397D010

78

Ltd. Crompton Greaves Ltd. DLF Ltd.

ION - SERVICES ELECTRICAL EQUIPMENT CONSTRUCTION

L CROMPGRE AV DLF EQ EQ

24 INE067A010 29 INE271C010 23

GMR Infrastructure Ltd. IRB Infrastructure Developers Ltd. Idea Cellular Ltd. Indian Hotels Co. Ltd. Jaiprakash Associates Lanco Infratech Ltd. Larsen & Toubro Ltd. Mahanagar Telephone Nigam Ltd.

CONSTRUCTION

GMRINFRA

EQ

INE776C010 39

TRAVEL AND TRANSPORT

IRB

EQ

INE821I010 14

TELECOMMUNICAT ION - SERVICES HOTELS

IDEA

EQ

INE669E010 16 INE053A010 29 INE455F010 25 INE785C010 48 INE018A010 30 INE153A010 19

INDHOTEL

EQ

DIVERSIFIED

JPASSOCIA T

EQ

CONSTRUCTION

LITL

EQ

ENGINEERING

LT

EQ

TELECOMMUNICAT ION - SERVICES

MTNL

EQ

79

NTPC Ltd. Neyveli Lignite Corporation Punj Lloyd Ltd. Reliance Communicati ons Ltd. Reliance Infrastructure Ltd. Reliance Power Ltd. Shipping Corporation of India Ltd. Siemens Ltd.

POWER POWER

NTPC

EQ

NEYVELILIG EQ

INE733E010 10 INE589A010 14

CONSTRUCTION

PUNJLLOYD EQ

INE701B010 21 INE330H010 18

TELECOMMUNICAT ION - SERVICES

RCOM

EQ

POWER

RELINFRA

EQ

INE036A010 16

POWER

RPOWER

EQ

INE614G010 33 INE109A010 11

SHIPPING

SCI

EQ

ELECTRICAL EQUIPMENT

SIEMENS

EQ

INE003A010 24 INE040H010 21 INE151A010 13

Suzlon Energy Ltd. Tata Communicati ons Ltd. Tata Power

ELECTRICAL EQUIPMENT TELECOMMUNICAT ION - SERVICES

SUZLON

EQ

TATACOMM

EQ

POWER

TATAPOWE

EQ

INE245A010 13

80

Co. Ltd. Unitech Ltd. CONSTRUCTION

R UNITECH EQ INE694A010 20

S.CNX PSU BANK Index

The Indian banking system, reaping the benefits of strong credit off take and improved risk management practices, has continued to report increase in earnings over the last five years, while improving on its solvency profile substantially. The emergence of the rural middle class segment and creation of many jobs in the last five years provided a large market for banks. To cater the needs of potential customers, public sector banks have taken various initiatives to improve their core fee income over the last few years. The public sector banks with their existing widespread branch network have been primarily increasing their IT related expenditure. The core profitability of the public sector banks continue to rise on the back of improving operating efficiencies. PSU Banks account for 70.3 percent in terms of total assets held for 2006-07 along with total business share amounting to 73 percent for 2006-07. Consolidation would further improve PSU banks' competitive edge against their private counterparts in servicing customers both retail and corporate in the international and domestic markets. Recognizing these changing dynamics of Indian banking industry, IISL has developed PSU Bank Index to capture the performance of the PSU banks. The CNX PSU Bank Index represents about 92.83% and 97.12% of the
81

full market capitalization and total turnover respectively of the last six months (for the period ended March 31, 2009) of the PSU Banks (sector) Universe respectively. The total total traded value for the last six months of all CNX PSU Bank Index constituents is approximately 5.94% of the traded value of all stocks on the NSE. CNX PSU Banks Index constituents represent about 4.52 % of the total market capitalization (Full Market Capitalistaion) as on March 31, 2009. Methodology The index is a Free Float methodology based weighted index with base date of January 1, 2004, indexed to a base value of 1000. Selection Criteria Selection of the index set is based on the following criteria: 1. Constituent should be a Public sector bank 2. Constituents market capitalization rank in the universe should be among the top 500. 3. Constituents turnover rank in the universe should be in the top 500. 4. Constituent should have a positive Net worth. 5. The constituents should be available for trading in the derivatives segment (Stock Futures & Options market) on NSE. Constituents list of CNX PSU BANK
Company Name Andhra Bank Bank of Baroda Industry BANKS BANKS Symbol ANDHRABANK BANKBARODA Series EQ EQ ISIN Code INE434A01013 INE028A01013

82

Bank of India Canara Bank Corporation Bank Indian Overseas Industrial Development Bank of India Ltd. Oriental Bank of Commerce Punjab National Bank State Bank of India Syndicate Bank

BANKS BANKS BANKS BANKS BANKS

BANKINDIA CANBK CORPBANK Indian Overseas IDBI

EQ EQ EQ EQ EQ

INE084A01016 INE476A01014 INE112A01015 INE565A01014 INE008A01015

BANKS BANKS BANKS BANKS

ORIENTBANK PNB SBIN SYNDIBANK UNIONBANK

EQ EQ EQ EQ EQ

INE141A01014 INE160A01014 INE062A01012 INE667A01018 INE692A01016

Union Bank of India BANKS

T.CNX Realty Index

Real estate sector in India is witnessing significant growth. Recent dynamics of the market reflected the opportunity of creating wealth across real estate companies, as proven by recent listings of real estate companies resulting into prominent growth in public funds and private equity. The main growth thrust is coming due to favorable demographics, increasing purchasing power, existence of customer friendly banks & housing finance companies, professionalism in the real estate sector and favourable reforms initiated by the government to attract global investors.

83

Further necessitated by the thrust of redevelopment of old buildings, building townships and redeveloping mill lands, one can witness plenty of opportunities in real estate sector backed by favourable tax regime. IISL has developed the CNX Realty Index to synergize these emerging opportunities along with their Index expertise creating new investment avenues for investors. The CNX Realty Index represents about 85.26% and 87.66% of the full market capitalization and total turnover of the last six month for the period March 31, 2009 of the Real estate sector Universe respectively. The total traded value for the last six months of all CNX Realty Index constituents is approximately 7.38% of the traded value of all stocks on the NSE. CNX Realty Index constituents represent about 1.47% of the total market capitalization (Full Market Capitalisation) as on March 31, 2009. Methodology The index is a Free Float methodology based weighted index with base date of December 29, 2006, indexed to a base value of 1000. Selection Criteria Selection of the index set is based on the following criteria: 1. Constituent should be a Real Estate Company. 2. Company's market capitalization rank in the universe should be among the top 500. 3. Companys turnover rank in the universe should be in the top 500. 4. Company should have a positive Net worth.

84

5. A company, which comes out with an IPO, will be eligible for inclusion in the index, if it fulfills the normal eligibility criteria for the index for a 1-month period. Constituents list of CNX Realty
Company Name Anant Raj Industries DLF Ltd. Housing Development and Infrastructure Ltd. Indiabulls Real Estate Ltd. Mahindra Lifespace Developers Ltd. Parsvnath Developer Peninsula Land Phoenix Mills CONSTRUCTION PHOENIXLTD EQ INE211B01039 CONSTRUCTION PENINLAND EQ INE138A01028 CONSTRUCTION PARSVNATH EQ INE561H01018 CONSTRUCTION MAHLIFE EQ INE813A01018 CONSTRUCTION IBREALEST EQ INE069I01010 CONSTRUCTION CONSTRUCTION DLF HDIL EQ EQ INE271C01023 INE191I01012 CONSTRUCTION ANANTRAJ EQ INE242C01024 Industry Symbol Series ISIN Code

85

Sobha Developers Ltd. Unitech Ltd.

CONSTRUCTION

SOBHA

EQ

INE671H01015

CONSTRUCTION

UNITECH

EQ

INE694A01020

Index Specification: (CONCLUSION)

Index BSE Auto BSE BANKEX BSE Capital Goods Base Period 01 February, 1999 01 January, 2002 01 February, 1999 Base Index Date of Launch Method of Calculation Value 1000 23 August, 2004 Free-float market capitalization 1000 23 June, 2003 Free-float market capitalization 1000 09 August, 1999 Launched on full market capitalization method and effective August 23, 2004, calculation method shifted to free-float market capitalization 1000 09 Augus, 1999 Launched on full market capitalization method and effective August 23, 2004, calculation method shifted to free-float market capitalization 1000 09 August, 1999 Launched on full market capitalization method and effective August 23, 2004, calculation method shifted to free-float market capitalization 1000 09 August, 1999 Launched on full market capitalization method and effective August 23, 2004, calculation method shifted to free-float market

BSE Consumer Durables

01 February, 1999

BSE FMCG

01 February, 1999

BSE Healthcare

01 February, 1999

86

BSE IT

01 February, 1999

1000

BSE Metal BSE Oil & Gas BSE Power Index BSE Realty

01 February, 1999 01 February, 1999 03 January, 2005 2005

1000 1000 1000

capitalization 09 August, 1999 Launched on full market capitalization method and effective August 23, 2004, calculation method shifted to free-float market capitalization 23 August, 2004 Free-float market capitalization 23 August, 2004 Free-float market capitalization 09 November, Free-float market 2007 capitalization 09 July, 2007 Free-float market capitalization

1000

DERIVATIVES What are Derivatives

Derivatives are financial instruments which derive their value from the underlying assets or securitues. For example if a Buyer enters into a contract with a Seller to buy a specified number of shares (or Index/ Commodity) of a particular company at a specified price after a specified period, the buyer is said to have entered into a Futures contract. It is interested to note that Buyer has bought the contract and not the stock of shares(or Index/ Commodity) under reference. This type of Future contract is called Derivative. There are many other type of Derivatives commonly used all over the world like Options,

87

Convertibles and Warrants etc. What are Futures ? It is an Agreement between the Buyer and the Seller for the Purchase or Sell of a Particular Asset ( like Equity Stock/ Index etc) at a Specified Price and on a specified future date (1 Month/ 2 Months/ 3 Months). It conveys an OBLIGATION on both Buyer and Seller to Fulfill the Terms of the Agreement. Futures are Settled on Last Thursday of the Specified Month and both buyer and seller have to pay minimum Initial Margin as per the requirement of stock exchange and account between buyer and seller is settled Everyday till the expiry of the Futures contract. Nifty Future contract have a multiplier of 200 whereas in case of BSE Sensex, the multiplier is 50 that means Nifty Futures contract gives rise to an obligation to deliver at settlement cash payment equal to 200 times ( 50 times in case of BSE Sensex Futures) the difference between the Nifty Index value at the close of the last trading day of the contract and the price at which the Futures Contract was negotiated. Example Suppose 'A' enters (Buys) a Nifty futures contract at 1225 for July (expiring on last Thursday of July) with 'B'. Both 'A' & 'B' will deposite the required margin with the Stock exchange. On last Thursday of July, Nifty closes at 1267. Now 'A' will get Rs. 8400/- {( 1267-1225) x 200 = 8400} from 'B'. In case Nifty closes at 1157, 'B' will get Rs. 13600/- {(1225-1157) x 200 = 13600 } from 'A'. ( BSE Sensex contract will carry a multiplier of 50 instead of 200 as in case of Nifty.) But their account will be credited or debited from their Margin Account and their position will be 'marked to market' at the end of

88

session each day. In case the Margin account falls below the maintenence level, cash is sought from the customer to replenish the margin account back to original level. Either of the customers having surplus margin beyond original margin can withdraw the funds. What are Options ? An option is a contract, which gives the Buyer of Option (holder) the right, but not the obligation, to Buy or Sell specified quantity of the underlying assets, at a Specific (Strike) Price on or before a Specified Time (expiration date) i.e 1 Month/ 2 Months/ 3 Months etc. The underlying may be physical commodities like wheat/ rice/ cotton/ gold/ oil or financial instruments like equity stocks/ stock index/ bonds etc. There are 2 types of Options i.e. Call Options and Put Options. CALL OPTIONS A Call Option gives the holder (buyer/ one who is long call), the right (No obligation) to buy specified quantity of the underlying asset at the strike price on or before expiration date. The seller (one who is short call) however, has the obligation to sell the underlying asset if the buyer of the call option decides to exercise his option to buy. Option buyer or option holder - Buys the right (No obligation) to buy the underlying asset at the specified price. Option seller or option writer - Has the obligation to sell the underlying asset (to the option holder) at the specified price PUT OPTIONS A Put Option gives the holder (buyer/ one who is long Put), the right (No obligation) to sell specified quantity of the underlying asset at the strike price on or before a expiry date. The seller of the put option (one who is short Put) however, has the obligation to buy the underlying

89

asset at the strike price if the buyer decides to exercise his option to sell. Option buyer or option holder - Buys (No obligation) the right to sell the underlying asset at the specified price. Option seller or option writer - Has the obligation to buy the underlying asset (from the option holder) at the specified price. When to Buy a Call Option. If you are Bullish on a particular Scrip/Index. For example, you are Bullish on Reliance (CMP- Rs.350/-) and expecting it to touch 450 in a month's time (or any particular period say 2/3 months). So you will Buy Reliance Call Option for 1 month (or any particular period) by paying a premium of Rs.10/share (Say). During the course of month you will get Right to excercise your Call Option to Buy Reliance at 350 from the seller of Call Option. Suppose it does not move up, you are free NOT to excercise your option to Buy and your loss is limited to the Premium you have paid. When to Buy a Put Option If you are Bearish on a particular Scrip/Index. For example, you are Bearish on ACC (CMP -Rs.150/-) and expecting it to touch 100/- in a month's time. So you will Buy ACC Put Option for 1 month by paying a premium of Rs.5/share (Say). During the course of month (you are Free to Buy ACC from market any time at lower price) you will get Right to excercise your Put Option to Sell ACC at 150/- to the seller of Put Option. Suppose it does not decline, you are free NOT to excercise your option to Sell and your loss is limited to the Premium you have paid. When to Sell a Call Option. If you are Bearish on a particular Scrip/Index. For example, you are Bearish on Infosys (CMP- Rs.3800/-) and expect that it will not move

90

up significantly(or rather decline) in a month's time. So you will Sell Infosys Call Option at a strike rate Rs.3900/- (say) for 1 month and Receive the Premium. (Say Rs.100/share). During the course of month Buyer of Call Option will have Right (Not the Obligation) to take Infosys at 3900/- from you and you are obliged to honour your commitment. Remember that you are Holding risk of umlimited loss if Price of Infosys moves up significantly just at the cost of Premium you have received.(you should sell Call Option Only if you are sure that Price of Share will Fall/or not move up or you are holding shares with you to part with, if required) When to Sell a Put Option If you are Bullish on a particular Scrip/Index. For example, you are Bullish on Satyam (CMP - Rs.200/-) and expect that it will not Decline significantly (or rather move up) in a month's time. So you will Sell Satyam Put Option at a strike rate Rs.215/- (say) for 1 month and Receive the Premium. (Say Rs.12/share). During the course of month Buyer of Put Option will have Right (Not the Obligation) to Sell Satyam at 215/- to you and you are obliged to honour your commitment. Remember that you are Holding risk of umlimited loss if Price of Satyam goes down at the cost of Premium you have received. (you should Sell Put Option Only if you are sure that Price of Share will Move up or you will take Delivery of shares, if required) How are Options different from Futures The significant differences in Futures and Options are as under: 1. Futures are agreements/contracts to buy or sell specified quantity of the underlying assets at a price agreed upon by the buyer & seller, on or before a specified time. Both the buyer and seller are obligated to buy/sell the underlying asset.

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2. In case of Options the buyer enjoys the right & not the obligation, to buy or sell the underlying asset. 3. Futures Contracts have symmetric risk profile for both the buyer as well as the seller, whereas options have asymmetric risk profile. In case of Options, for a buyer (or holder of the option), the downside is limited to the premium (option price) he has paid while the profits may be unlimited. For a seller or writer of an Options however, the downside is unlimited while profits are limited to the premium he has received from the buyer. 4. The Futures contracts prices are affected mainly by the prices of the underlying asset. The prices of Options are however, affected by prices of the underlying asset, time remaining for expiry of the contract & volatility of the underlying asset. 5. It costs nothing to enter into a Futures contract whereas there is a cost of entering into an Options contract, termed as Premium. What is Assignment When holder of an option exercises his right to buy/ sell, a randomly selected option seller is assigned the obligation to honor the underlying contract, and this process is termed as Assignment. What are European & American Style of options An American style option is the one which can be exercised by the buyer on or before the expiration date, i.e. anytime between the day of purchase of the option and the day of its expiry. The European kind of option is the one which can be exercised by the buyer on the expiration day only & not anytime before that. What is an Option Calculator

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An option calculator is a tool to calculate the price of an Option on the basis of various influencing factors like the price of the underlying and its volatility, time to expiry, risk free interest rate etc. It also helps the user to understand how a change in any one of the factors or more, will affect the option price. Who are the likely players in the Options Market Financial institutions, Mutual Funds, Domestic & Foreign Institutional Investors, Brokers, Retail Participants are the likely players in the Options Market. What are Stock Index Options ? The Stock Index Options are options where the underlying asset is a Stock Index for e.g. Options on S&P 500 Index/ Options on BSE Sensex etc. Index Options were first introduced by Chicago Board of Options Exchange (CBOE) in 1983 on its Index S&P 100. As opposed to options on Individual stocks, index options give an investor the right to buy or sell the value of an index which represents group of stocks. What are the uses of Index Options ? Index options enable investors to gain exposure to a broad market, with one trading decision and frequently with one transaction. To obtain the same level of diversification using individual stocks or individual equity options, numerous decisions and trades would be necessary. Since, broad exposure can be gained with one trade, transaction cost is also reduced by using Index Options. As a percentage of the underlying value, premiums of index options are usually lower than those of equity options as equity options are more volatile than the Index. Who would use index options ?

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Index Options are effective enough to appeal to a broad spectrum of users, from conservative investors to more aggressive stock market traders. Individual investors might wish to capitalize on market opinions (bullish, bearish or neutral) by acting on their views of the broad market or one of its many sectors. The more sophisticated market professionals might find the variety of index option contracts excellent tools for enhancing market timing decisions and adjusting asset mixes for asset allocation. To a market professional, managing the risk associated with large equity positions may mean using index options to either reduce their risk or to increase market exposure. What are Options on individual stocks ? Options contracts where the underlying asset is an equity stock, are termed as Options on stocks. They are mostly American style options cash settled or settled by physical delivery. Prices are normally quoted in terms of the premium per share, although each contract is invariably for a larger number of shares, e.g. 100. What are Over the Counter Options ? OTC ("over the counter") options are those dealt directly between counter-parties and are completely flexible & customized . There is some standardization for ease of trading in the busiest markets, but the precise details of each transaction are freely negotiable between buyer and seller. What is the underlying in case of Options being introduced by BSE The underlying for the index options is the BSE 30 Sensex, which is the benchmark index of Indian Capital markets, comprising of 30 scrips. What will be the new margining system in the case of Options and futures?

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A portfolio based margining model (SPAN), would be adopted which will take an integrated view of the risk involved in the portfolio of each individual client comprising of his positions in all the derivatives contract traded on the Derivatives Segment. The Initial Margin would be based on worst-case loss of the portfolio of a client to cover 99% VaR over two days horizon. The Initial Margin would be netted at client level and shall be on gross basis at the Trading/Clearing member level. The Portfolio will be marked to market on a daily basis. Important Terminology Underlying - The specific security / asset on which an options contract is based Option Premium - Premium is the price paid by the buyer to the seller to acquire the right to buy or sell Strike Price or Exercise Price - The strike or exercise price of an option is the specified/ pre-determined price of the underlying asset at which the same can be bought or sold if the option buyer exercises his right to buy/ sell on or before the expiration day. Expiration date -The date on which the option expires is known as Expiration Date. On Expiration date, either the option is exercised or it expires worthless. Exercise Date is the date on which the option is actually exercised. In case of European Options the exercise date is same as the expiration date while in case of American Options, the options contract may be exercised any day between the purchase of the contract & its expiration date (see European/ American Option)

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Open Interest - The total number of options contracts outstanding in the market at any given point of time. Option Holder - is the one who buys an option which can be a call or a put option. He enjoys the right to buy or sell the underlying asset at a specified price on or before specified time. His upside potential is unlimited while losses are limited to the Premium paid by him to the option writer. Option seller/ writer - is the one who is obligated to buy (in case of Put option) or to sell (in case of call option), the underlying asset in case the buyer of the option decides to exercise his option. His profits are limited to the premium received from the buyer while his downside is unlimited. Option Class - All listed options of a particular type (i.e., call or put) on a particular underlying instrument, e.g., all Sensex Call Options (or) all Sensex Put Options Option Series - An option series consists of all the options of a given class with the same expiration date and strike price. E.g. BSXCMAY3600 is an options series which includes all Sensex Call options that are traded with Strike Price of 3600 & Expiry in May. (BSX Stands for BSE Sensex (underlying index), C is for Call Option , May is expiry date & strike Price is 3600).

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Demat
It refers to a dematerialized account.
Though the company is under obligation to offer the securities in both physical and demat mode, you have the choice to receive the securities in either mode. If you wish to have securities in demat mode, you need to indicate the name of the depository and also of the depository participant with whom you have depository account in your application. It is, however desirable that you hold securities in demat form as physical securities carry the risk of being fake, forged or stolen. Just as you have to open an account with a bank if you want to save your money, make cheque payments etc, Nowadays, you need to open a demat account if you want to buy or sell stocks. So it is just like a bank account where actual money is replaced by shares. You have to approach the DPs (remember, they are like bank branches), to open your demat account. Let's say your portfolio of shares looks like this: 150 of Infosys, 50 of Wipro, 200 of HLL and 100

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of ACC. All these will show in your demat account. So you don't have to possess any physical certificates showing that you own these shares. They are all held electronically in your account. As you buy and sell the shares, they are adjusted in your account. Just like a bank passbook or statement, the DP will provide you with periodic statements of holdings and transactions.

Is a demat account a must?

Nowadays, practically all trades have to be settled in dematerialized form. Although the market regulator, the Securities and Exchange Board of India (SEBI), has allowed trades of upto 500 shares to be settled in physical form, nobody wants physical shares any more. So a demat account is a must for trading and investing.Most banks are also DP participants, as are many brokers. You can choose your very own DP. To get a list, visit the NSDL and CDSL websites and see who the registered DPs are. A broker is separate from a DP. A broker is a member of the stock exchange, who buys and sells shares on his behalf and on behalf of his clients. A DP will just give you an account to hold those shares. You do not have to take the same DP that your broker takes. You can
choose your own The benefits

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A safe and convenient way to hold securities; Immediate transfer of securities; No stamp duty on transfer of securities; Elimination of risks associated with physical certificates such as bad delivery, fake securities, delays, thefts etc.; Reduction in paperwork involved in transfer of securities; Reduction in transaction cost; No odd lot problem, even one share can be sold; Nomination facility; Change in address recorded with DP gets registered with all companies in which investor holds securities electronically eliminating the need to correspond with each of them separately; Transmission of securities is done by DP eliminating correspondence with companies; Automatic credit into demat account of shares, arising out of bonus/split/consolidation/merger etc.

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Holding investments in equity and debt instruments in a single account.

.

WORLD INDICES AND THEIR DETAILS

Dow Jones Industrial Average The Dow Jones Industrial Average, also referred to as the Industrial Average, the Dow Jones, the Dow 30, or simply the Dow, is one of several stock market indices created by Wall Street Journal editor and Dow Jones & Company co-founder Charles Dow. The average is named after Dow and one of his business associates, statistician Edward Jones. It is an index that shows how 30 large, publicly owned companies based in the United States have traded during a standard trading session in the stock market.[1] It is the second oldest U.S. market index after the Dow Jones Transportation Average, which Dow also created. The Industrial portion of the name is largely historical, as many of the modern 30 components have little or nothing to do with traditional heavy industry. The average is price-weighted, and to compensate for the effects of stock splits and other adjustments, it is currently a scaled average. The value of the Dow is not the actual average of the prices of its component stocks, but rather the sum of the component prices divided by a divisor, which changes whenever one of the component stocks has a stock split or stock dividend, so as to generate a consistent value for the index.

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Along with the NASDAQ Composite, the S&P 500 Index, and the Russell 2000 Index, the Dow is among the most closely-watched benchmark indices tracking targeted stock market activity. Although Dow compiled the index to gauge the performance of the industrial sector within the American economy, the index's performance continues to be influenced by not only corporate and economic reports, but also by domestic and foreign political events such as war and terrorism, as well as by natural disasters that could potentially lead to economic harm. Components of the Dow trade on both the NASDAQ OMX and the NYSE Euronext, two of the largest stock market companies. Derivatives of the Dow trade on the Chicago Board Options Exchange and through CME Group, the world's largest futures exchange company. Currently, the CME Group has signed a deal with Dow Jones to acquire 90% of the latter firm's indexing business, including the Dow Jones Industrial Average.[2][3]

DOW JONES INDUSTRIAL AVERAGE COMPANIES LISTED COMPANY

3M

INDUSTRY
Conglomerate

SYMBOL
MMM

DATE ADDED
1976-08-09 (as Minnesota Mining and Manufacturing) 1959-06-01 (as Aluminum Company of America) 1982-08-30 1999-11-01 (as SBC Communications) 2008-02-19 1987-03-12 1991-05-06 2008-02-19 2009-06-08

Alcoa American Express AT&T Bank of America Boeing Caterpillar Chevron Corporation Cisco Systems

Aluminum Consumer finance Telecommunication Banking Aerospace and defense Construction and mining equipment Oil & gas Computer networking

AA AXP T BAC BA CAT CVX CSCO

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Coca-Cola DuPont ExxonMobil General Electric Hewlett-Packard The Home Depot Intel IBM Johnson & Johnson JPMorgan Chase Kraft Foods McDonald's Merck Microsoft Pfizer Procter & Gamble Travelers United Technologies Corporation Verizon Communications Wal-Mart Walt Disney

Beverages Chemical industry Oil & gas Conglomerate Technology Home improvement retailer Semiconductors Computers and technology Pharmaceuticals Banking Food processing Fast food Pharmaceuticals Software Pharmaceuticals Consumer goods Insurance Conglomerate Telecommunication Retail Broadcasting and entertainment

KO DD XOM GE HPQ HD INTC IBM JNJ JPM KFT MCD MRK MSFT PFE PG TRV UTX VZ WMT DIS

1987-03-12 1935-11-20 (also 192401-22 to 1925-08-31) 1928-10-01 (as Standard Oil) 1907-11-07 1997-03-17 1999-11-01 1999-11-01 1979-06-29 1997-03-17 1991-05-06 (as J.P. Morgan & Company) 2008-09-22 1985-10-30 1979-06-29 1999-11-01 2004-04-08 1932-05-26 2009-06-08 1939-03-14 (as United Aircraft) 2004-04-08 1997-03-17 1991-05-06

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The NASDAQ Stock Market, known as NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations," but the exchange's official stance is that the acronym is obsolete.[1] It is the largest electronic screen-based equity securities trading market in the United States. With approximately 3,700 companies and corporations, it has more trading volume than any other stock exchange in the world. OTHER DETAILS:Location New York City, USA Founded February 8, 1971 Owner The NASDAQ OMX Group

Key people Robert Greifeld (CEO) Currency USD No. of listings 3,800~ NASDAQ Composite NASDAQ-100 Indexes NASDAQ Biotechnology Index Website www.nasdaq.com

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Japan's Nikkei 225

Nikkei 225 is a stock market index for the Tokyo Stock Exchange (TSE). It has been calculated daily by the Nihon Keizai Shimbun (Nikkei) newspaper since 1950. It is a price-weighted average (the unit isyen), and the components are reviewed once a year. Currently, the Nikkei is the most widely quoted average of Japanese equities, similar to the Dow Jones Industrial Average. In fact, it was known as the "Nikkei Dow Jones Stock Average" from 1975 to 1985.[1] The Nikkei 225 began to be calculated on September 7, 1950, retroactively calculated back to May 16, 1949. The Nikkei 225 Futures, introduced at Singapore Exchange (SGX) in 1986, the Osaka Securities Exchange (OSE) in 1988,Chicago Mercantile Exchange (CME) in 1990, is now an internationally recognized futures index.[2] The Nikkei average hit its all-time high on December 29, 1989, during the peak of the Japanese asset price bubble, when it reached an intraday high of 38,957.44 before closing at 38,915.87. Its high for the 21st century stands just above 18,300 points. In January 2010, it was 72.9% below its peak. Another major index for the Tokyo Stock Exchange is the Topix. There is 225 companies listed under Nikkei.

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Straits Times Index (STI)

The Straits Times Index (STI) is a market value-weighted stock market index based on the stocks of 30 representative companies listed on the Singapore Exchange. Launched in the wake of a major sectoral re-classification of listed companies by the Singapore Exchange, which saw the removal of the "industrials" category, the STI replaced theStraits Times Industrials Index (STII), and began trading 31 August 1998 at 885.26 points, in continuation of where the STII left off. Then, it represented 78% of the average daily traded value over a 12-month period and 61.2% of total market capitalisation on the exchange. Constructed by the Singapore Press Holdings, the Singapore Exchange and Professor Tse Yiu Kuen from the Singapore Management University, it comes under formal review at least once annually, and may also be reviewed on an ad-hoc basis when necessary. One such review, for instance, raised the number of stocks from 45 to 50, which took effect when trading resumed on 18 March 2005. This change reduced the index representation of the average daily traded value to 60%, while increasing its total market capitalisation to 75%.

The Shanghai Stock Exchange (SSE)

The Shanghai Stock Exchange (SSE) is a stock exchange that is based in the city of Shanghai, China. It is one of the three stock exchanges operating independently in the People's Republic of China, the other two are the Shenzhen Stock Exchangeand the Hong Kong
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Stock Exchange. Unlike the Hong Kong Stock Exchange, the Shanghai Stock Exchange is still not entirely open to foreign investors [1] due to tight capital account controls exercised by the Chinese mainland authorities.[2] The current exchange was re-established on November 26, 1990 and was in operation on December 19 of the same year. It is a non-profit organization directly administered by the China Securities Regulatory Commission (CSRC). Location Shanghai, China Founded 1891 Key people Geng Liang (Chairman) William C. Bassell (President) Currency RMB No. of listings 860 MarketCap USD $3.21 trillion (2009) Indexes SSE Composite SSE 180 SSE 50 Website www.sse.com.cn

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FTSE 100 Index

The FTSE 100 Index is a share index of the 100 most highly capitalised UK companies listed on theLondon Stock Exchange. The index began on 3 January 1984 with a base level of 1000; the highest value reached to date is 6950.6, on 30 December 1999. It is the most widely used of the FTSE Group's indices, and is frequently reported (e.g. on UK news bulletins) as a measure of business prosperity. FTSE 100 companies represent about 81% of the market capitalisation of the whole London Stock Exchange. Even though the FTSE All-Share Index is more comprehensive, the FTSE 100 is by far the most widely used UK stock market indicator. Other related indices are the FTSE 250 Index (which lists the next largest 250 companies after the FTSE 100), the FTSE 350 Index (which is the aggregation of the FTSE 100 and 250), FTSE SmallCap Index and FTSE Fledgling Index. The FTSE All-Share aggregates the FTSE 100, FTSE 250 and FTSE SmallCap. As of 30 September 2008, the net market capitalisation of FTSE 100 Index was 1,171 billion. The index consists of 100 companies, but a total of 102 listings as two classes of shares are included for Royal Dutch Shell and Schroders. CAC 40 The CAC 40 (French: CAC quarante kak ka t ) is a benchmark French stock market index. The index represents a capitalization-weighted measure of the 40 most significant values among the 100 highest market caps on the Paris Bourse

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(now Euronext Paris). It is one of the main national indices of the pan-European stock exchange group Euronext alongside Brussels' BEL20, Lisbon's PSI20 and Amsterdam'sAEX

Foundation 1987 Operator Euronext Exchanges Euronext Paris Constituents 40 Type Large cap Market cap 1.031 trillion (end 2009)[1] Weighting Market value-weighted method Related CAC Next 20, CAC Mid indices 100, CAC Small 90

Bombay Stock Exchange

Bombay Stock Exchange is the oldest stock exchange in Asia with a
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rich heritage, now spanning three centuries in its 133 years of existence. What is now popularly known as BSE was established as "The Native Share & Stock Brokers' Association" in 1875. BSE is the first stock exchange in the country which obtained permanent recognition (in 1956) from the Government of India under the Securities Contracts (Regulation) Act 1956. BSE's pivotal and preeminent role in the development of the Indian capital market is widely recognized. It migrated from the open outcry system to an online screen-based order driven trading system in 1995. Earlier an Association Of Persons (AOP), BSE is now a corporatised and demutualised entity incorporated under the provisions of the Companies Act, 1956, pursuant to the BSE (Corporatisation and Demutualisation) Scheme, 2005 notified by the Securities and Exchange Board of India (SEBI). With demutualisation, BSE has two of world's best exchanges, Deutsche Borse and Singapore Exchange, as its strategic partners. Over the past 133 years, BSE has facilitated the growth of the Indian corporate sector by providing it with an efficient access to resources. There is perhaps no major corporate in India which has not sourced BSE's services in raising resources from the capital market. Today, BSE is the world's number 1 exchange in terms of the number of listed companies and the world's 5th in transaction numbers. The market capitalization as on December 31, 2007 stood at USD 1.79 trillion . An investor can choose from more than 4,700 listed companies, which for easy reference, are classified into A, B, S, T and Z groups. The BSE Index, SENSEX, is India's first stock market index that enjoys an iconic stature , and is tracked worldwide. It is an index of 30 stocks
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representing 12 major sectors. The SENSEX is constructed on a 'freefloat' methodology, and is sensitive to market sentiments and market realities. Apart from the SENSEX, BSE offers 21 indices, including 12 sectoral indices. BSE has entered into an index cooperation agreement with Deutsche Borse. This agreement has made SENSEX and other BSE indices available to investors in Europe and America. Moreover, Barclays Global Investors (BGI), the global leader in ETFs through its iShares brand, has created the 'iShares BSE SENSEX India Tracker' which tracks the SENSEX. The ETF enables investors in Hong Kong to take an exposure to the Indian equity market. BSE has tied up with U.S. Futures Exchange (USFE) for U.S. dollardenominated futures trading of SENSEX in the U.S. The tie-up enables eligible U.S. investors to directly participate in India's equity markets for the first time, without requiring American Depository Receipt (ADR) authorization. The first Exchange Traded Fund (ETF) on SENSEX, called "SPIcE" is listed on BSE. It brings to the investors a trading tool that can be easily used for the purposes of investment, trading, hedging and arbitrage. SPIcE allows small investors to take a long-term view of the market. BSE provides an efficient and transparent market for trading in equity, debt instruments and derivatives. It has a nation-wide reach with a presence in more than 359 cities and towns of India. BSE has always been at par with the international standards. The systems and processes are designed to safeguard market integrity and enhance transparency in operations. BSE is the first exchange in India and the second in the world to obtain an ISO 9001:2000 certification. It is also the first exchange in the country and second in the world to receive Information Security Management System Standard BS 7799-2-2002 certification for its BSE On-line Trading System (BOLT).

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BSE continues to innovate. In recent times, it has become the first national level stock exchange to launch its website in Gujarati and Hindi to reach out to a larger number of investors. It has successfully launched a reporting platform for corporate bonds in India christened the ICDM or Indian Corporate Debt Market and a unique ticker-cumscreen aptly named 'BSE Broadcast' which enables information dissemination to the common man on the street. In 2006, BSE launched the Directors Database and ICERS (Indian Corporate Electronic Reporting System) to facilitate information flow and increase transparency in the Indian capital market. While the Directors Database provides a single-point access to information on the boards of directors of listed companies, the ICERS facilitates the corporates in sharing with BSE their corporate announcements. BSE also has a wide range of services to empower investors and facilitate smooth transactions: Investor Services: The Department of Investor Services redresses grievances of investors. BSE was the first exchange in the country to provide an amount of Rs.1 million towards the investor protection fund; it is an amount higher than that of any exchange in the country. BSE launched a nationwide investor awareness programme- 'Safe Investing in the Stock Market' under which 264 programmes were held in more than 200 cities. The BSE On-line Trading (BOLT): BSE On-line Trading (BOLT) facilitates on-line screen based trading in securities. BOLT is currently operating in 25,000 Trader Workstations located across over 359 cities in India. BSEWEBX.com: In February 2001, BSE introduced the world's

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first centralized exchange-based Internet trading system, BSEWEBX.com. This initiative enables investors anywhere in the world to trade on the BSE platform. Surveillance: BSE's On-Line Surveillance System (BOSS) monitors on a real-time basis the price movements, volume positions and members' positions and real-time measurement of default risk, market reconstruction and generation of cross market alerts. BSE Training Institute: BTI imparts capital market training and certification, in collaboration with reputed management institutes and universities. It offers over 40 courses on various aspects of the capital market and financial sector. More than 20,000 people have attended the BTI programmes Awards

The World Council of Corporate Governance has awarded the Golden Peacock Global CSR Award for BSE's initiatives in Corporate Social Responsibility (CSR). The Annual Reports and Accounts of BSE for the year ended March 31, 2006 and March 31 2007 have been awarded the ICAI awards for excellence in financial reporting. The Human Resource Management at BSE has won the Asia Pacific HRM awards for its efforts in employer branding through talent management at work, health management at work and excellence in HR through technology

Drawing from its rich past and its equally robust performance in the recent times, BSE will continue to remain an icon in the Indian capital market.

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Bombay Stock Exchange - BSE 30 Index

S.NO 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 COMPANIES ACC BHARTI AIRTEL BHEL DLF GRASIM HDFC HDFC BANK HERO HONDA HINDALCO HUL ICICI BANK INFOSYS ITC JAIPRAKASH ASSOCIATES LARSEN MAH & MAH MARUTI SUZUKI NTPC ONGC

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20 21 22 23 24 25 26 27 28 29 30

RELIANCE RELIANCE COMM. RELIANCE INFRA SBI STERLITE IND. SUN PHARMA TATA POWER TATA STEEL TATA MOTORS TCS WIPRO

The National Stock Exchange of India

The National Stock Exchange of India Limited has genesis in the report of the High Powered Study Group on Establishment of New Stock Exchanges. It 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 exchanges in the country. On its recognition as a stock exchange under the Securities Contracts (Regulation) Act, 1956 in April 1993, NSE commenced
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operations in the Wholesale Debt Market (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 following years witnessed rapid development of Indian capital market with introduction of internet trading, Exchange traded funds (ETF), stock derivatives and the first volatility index - IndiaVIX in April 2008, by NSE. August 2008 saw introduction of Currency derivatives in India with the launch of Currency Futures in USD INR by NSE. Interest Rate Futures was introduced for the first time in India by NSE on 31st August 2009, exactly after one year of the launch of Currency Futures. With this, now both the retail and institutional investors can participate in equities, equity derivatives, currency and interest rate derivatives, giving them wide range of products to take care of their evolving needs.

List of NSE listed companies

Company Name ABB Ltd. ACC Ltd. Ambuja Cements Ltd. Bharat Heavy Electricals Ltd. Bharat Petroleum Corporation Ltd. Bharti Airtel Ltd. Industry ELECTRICAL EQUIPMENT CEMENT AND CEMENT PRODUCTS CEMENT AND CEMENT PRODUCTS ELECTRICAL EQUIPMENT REFINERIES TELECOMMUNICATION Symbol ABB ACC AMBUJACEM BHEL BPCL BHARTIARTL

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Cairn India Ltd. Cipla Ltd. DLF Ltd. GAIL (India) Ltd. Grasim Industries Ltd. HCL Technologies Ltd. HDFC Bank Ltd. Hero Honda Motors Ltd. Hindalco Industries Ltd. Hindustan Unilever Ltd. Housing Development Finance Corporation Ltd. I T C Ltd. ICICI Bank Ltd. Idea Cellular Ltd.

SERVICES OIL EXPLORATION/PRODUCTION PHARMACEUTICALS CONSTRUCTION GAS CEMENT AND CEMENT PRODUCTS COMPUTERS SOFTWARE BANKS AUTOMOBILES 2 AND 3 WHEELERS ALUMINIUM DIVERSIFIED FINANCE HOUSING

CAIRN CIPLA DLF GAIL GRASIM HCLTECH HDFCBANK HEROHONDA HINDALCO HINDUNILVR HDFC ITC ICICIBANK IDEA INFOSYSTCH LT M&M MARUTI NTPC NATIONALUM ONGC POWERGRID PNB RANBAXY RCOM RELIANCE RELINFRA RPL

CIGARETTES BANKS TELECOMMUNICATION SERVICES Infosys Technologies Ltd. COMPUTERS SOFTWARE Larsen & Toubro Ltd. ENGINEERING Mahindra & Mahindra AUTOMOBILES 4 Ltd. WHEELERS Maruti Suzuki India Ltd. AUTOMOBILES 4 WHEELERS NTPC Ltd. POWER National Aluminium Co. ALUMINIUM Ltd. Oil & Natural Gas OIL Corporation Ltd. EXPLORATION/PRODUCTION Power Grid Corporation POWER of India Ltd. Punjab National Bank BANKS Ranbaxy Laboratories PHARMACEUTICALS Ltd. Reliance TELECOMMUNICATION Communications Ltd. SERVICES Reliance Industries Ltd. REFINERIES Reliance Infrastructure POWER Ltd. Reliance Petroleum Ltd. REFINERIES

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Reliance Power Ltd. Satyam Computer Services Ltd. Siemens Ltd. State Bank of India Steel Authority of India Ltd. Sterlite Industries (India) Ltd. Sun Pharmaceutical Industries Ltd. Suzlon Energy Ltd. Tata Communications Ltd. Tata Consultancy Services Ltd. Tata Motors Ltd. Tata Power Co. Ltd. Tata Steel Ltd. Unitech Ltd. Wipro Ltd. Zee Entertainment Enterprises Ltd.

POWER COMPUTERS SOFTWARE ELECTRICAL EQUIPMENT BANKS STEEL AND STEEL PRODUCTS METALS PHARMACEUTICALS ELECTRICAL EQUIPMENT TELECOMMUNICATION SERVICES COMPUTERS SOFTWARE AUTOMOBILES 4 WHEELERS POWER STEEL AND STEEL PRODUCTS CONSTRUCTION COMPUTERS SOFTWARE MEDIA & ENTERTAINMENT

RPOWER SATYAMCOMP SIEMENS SBIN SAIL STER SUNPHARMA SUZLON TATACOMM TCS TATAMOTORS TATAPOWER TATASTEEL UNITECH WIPRO ZEEL

MSCI World
The MSCI World is a stock market index of 1500 'world' stocks. It is maintained by MSCI Inc., formerly Morgan Stanley Capital International, and is often used as a common benchmark for 'world' or 'global' stock funds. The index includes a collection of stocks of all the developed markets in the world, as defined by MSCI. The index includes securities from 23 countries but excludes stocks from
117

emerging economies making it less worldwide than the name suggests. A related index, the MSCI All Country World Index (ACWI), incorporated both developed and emerging countries. The MSCI World Index has been calculated since 1969,[1] in various forms: without dividends (Price Index), with net or with gross dividends reinvested (Net and Gross Index), in both US dollars and local currencies. Countries/regions Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germa ny, Greece, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain,Sweden, Switzerland, Uni ted Kingdom, United States

Conclusion
It is much easier to discuss the stock market if you understand some of the basic stock market terms. There is a large variety of stock market terms and learning them will not only help in your conversations but also to better comprehend.

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QUESTIONNAIRE
Personal Information

Name: Age: Sex: Phone No: Occupation: Male Female

Q1. In which of these Financial Instruments do you invest into? Shares Mutual Funds Bonds Derivatives

Q2. Are you aware of online Share trading? Yes No

Q3. Heard about Reliance money? Yes No

Q4. Do you know about the facilities provided by Reliance money? Yes No

Q5. With which company do you have your DEMAT account?

119

Reliance money

ICICI Direct

Kotak Mahindra

India Bulls

Others (please specify) Q6. What differentiates your Share trading company from others? (in regards of brokerage, satisfaction, services, products )

Q7. Are you currently satisfied with your Share trading company? Yes No

Q8. How often do you trade? Daily Weekly Monthly Yearly

Q9. What percentage of your earnings do you invest in share trading? Up to 10% Up to 25% Up to 50%
a. b. c. d. e.

Above 50% Reliance money

ICICI Direct India Bulls Kotak Mahindra Others (Please specify)

Q13. How do you rate these share trading companies? 1. 4. 2. 5. 3.

Q14. What more facilities do you think you require with your DEMAT account?

120

OBSERVATION RESULTS

1. Preference of Investment

Fig7.1 Result of Preference of Investment

Interpretation: This shows that although the mutual funds market is on the rise yet, the most favored investment continues to be in the Share Market. So, with a more transparent system, investment in the Stock Market can definitely be increased.

2. Awareness on Online Share Trading

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Fig7.2 Result of Awareness of Online Share Trading

Interpretation: With the increase in cyber education, the awareness towards online share trading has increased by leaps and bounds. This awareness is expected to increase further with the increase in Internet education.

3. Awareness of Reliance Money as a Brand

Fig7.3 Result of Awareness of Reliance money as a Brand

Interpretation: This pie-chart shows that reliance money has a reasonable amount of Brand awareness in terms of a premier Retail stock broking company. This brand image should be further leveraged by the company to increase its market share over its competitors.

Awareness of Reliance Money Facilities

122

Fig7.4 Result of Awareness of Reliance money Facilities

Interpretation: Although there is sufficiently high brand equity among the target audience yet, it is to be noted that the customers are not aware of the facilities provided by the company meaning thereby, that, the company should concentrate more towards promotional tools and increase its focus on product awareness rather than brand awareness.

4. Satisfaction Level among Customers with current broker

Fig7.5 Result of satisfaction level among customers with current broker

Interpretation: This pie-chart corroborate the fact that Strategic marketing, today, has gone beyond only meeting Sales targets and generating profit volumes. It shows that all the competitors are striving hard not only to woo the customers but also to make them Brand loyal by generating customer satisfaction.

123

5. Frequency of Trading

Interpretation: Inspite of the huge returns that the share market promises, we see that there is still a dearth of active traders and investors. This is because of the non transparent structure of the Indian share market and the skepticism of the target audience that is generated by the volatility of the stock market. It requires efficient bureaucratic intervention on the part of the Government.

6. Percentage of earnings invested in Share Trading

124

Fig7.7 Result of percentage of earning invested in share trading

Interpretation: This shows that people invest only upto 10% of their earnings in the stock market, again reiterating the volatile and non-transparent structure of the Indian stock market. Hence, effective and efficient steps should be undertaken to woo the customers to invest more in the lucrative stock market .

CONCLUSION AND RECOMMENDATIONS

RECOMMENDATIONS

Based on the findings of our project we would like to suggest the following: After sales services and follow up calls are important for getting new references so trained telesales should be appointed for this purpose whose sole work should be to make feedback calls. Reliance is having too many financial products right from Demat account to General Insurance and not all the salespeople are familiar with each and every product so the work force should be segregated each group dealing in a specific product and the sales target should be given likewise. While interacting with the investors I found that most of the customers are unaware about the Mutual fund. Some of the people

125

look upon mutual funds and equity trading as gambling. Thus a mutual fund awareness program can help to increase the penetration of mutual funds in the market. Reliance should declare in black ink that they will charge just 1 paisa per transaction. People tend to think that there must be some hidden charges.
Rs 1000 account opening charges are too high when targeting a corporate so the company should be flexible on this amount. Reliance should provide periodic training for updating the product knowledge of various financial advisors. Company should have a scheme of rewards and recognition to employees and the field persons to boost their motivation.

RANBAXY
PRICES Date Open High Low Close Volume Adj Close*

17-May-10 14-May-10 13-May-10 12-May-10 11-May-10 10-May-10 7-May-10 6-May-10 5-May-10 4-May-10

453.00 461.00 464.00 461.00 460.00 494.40 453.70 442.00 436.00 454.50

458.00 464.80 465.80 465.75 470.45 494.40 465.00 465.60 448.00 457.45

442.10 455.20 459.30 451.80 450.10 446.35 447.60 442.00 430.00 437.10

452.50 456.00 460.40 459.00 453.00 454.05 449.00 459.60 447.05 439.55

963,400 727,500 1,058,400 2,584,800 3,651,000 1,226,900 1,087,900 2,098,000 833,800 1,074,600

452.50 456.00 460.40 459.00 453.00 454.05 449.00 459.60 447.05 439.55

126

3-May-10

443.00

453.70

437.50

452.95

1,158,400

452.95

Close
465 460 455 450 445 440 435 430 Close

425

TATA STEEL
PRICES Date Open High Low Close Volume Adj Close*

17-May-10 14-May-10 13-May-10 12-May-10 11-May-10

532.55 574.00 585.00 582.00 605.00

540.80 574.00 593.65 588.00 608.80

523.00 545.50 571.55 572.00 579.00

535.80 10,980,200 547.00 8,098,700 576.40 5,536,400 583.70 6,387,900 579.50 9,110,700

535.80 547.00 576.40 583.70 579.50

127

10-May-10 7-May-10 6-May-10 5-May-10 4-May-10 3-May-10

598.90 560.00 573.00 570.00 607.00 610.00

606.00 569.00 579.90 577.40 629.85 617.85

564.00 552.45 561.20 555.70 572.15 604.00

605.65 7,652,000 558.70 7,095,900 576.40 8,053,500 577.00 11,731,400 572.90 8,712,100 608.00 5,477,200

605.65 558.70 576.40 577.00 572.90 608.00

Close
620 600 580 560 540 520 500 480 10-May-10 11-May-10 12-May-10 13-May-10 14-May-10 15-May-10 16-May-10 17-May-10

Close

ICICI
PRICES Date Open High Low Close Volume Adj Close*

17-May-10 14-May-10 13-May-10 12-May-10 11-May-10

898.00 925.05 922.00 922.00 922.00

904.90 925.05 934.00 923.40 934.00

9-May-10

3-May-10

4-May-10

5-May-10

6-May-10

7-May-10

8-May-10

883.05 905.00 921.05 906.10 908.00

899.25 908.70 928.00 914.20 918.00

3,404,500 2,585,900 2,924,000 3,526,900 4,166,700

899.25 908.70 928.00 914.20 918.00

128

10-May-10 7-May-10 6-May-10 5-May-10 4-May-10 3-May-10

889.90 884.90 898.45 910.00 941.90 946.10

928.00 892.00 912.55 910.00 946.60 957.95

888.60 869.00 891.00 887.25 909.00 933.00

923.65 877.00 901.40 906.70 916.00 937.05

4,430,100 5,115,000 3,270,900 5,285,000 3,506,000 2,984,500

923.65 877.00 901.40 906.70 916.00 937.05

960 940 920 900 880 860 840 3-May-10 4-May-10 5-May-10 6-May-10 7-May-10 8-May-10 9-May-10 10-May-10

Close

11-May-10

12-May-10

13-May-10

14-May-10

15-May-10

16-May-10

ITC
PRICES Date Open High Low Close Volume Adj Close*

18-May-10 17-May-10 14-May-10 13-May-10 12-May-10

266.00 267.80 267.00 267.00 260.00

269.40 269.00 272.80 267.75 265.65

262.90 264.70 266.55 263.60 259.00

268.55 265.70 268.15 266.35 265.00

126,200 212,200 419,700 210,600 180,700

17-May-10

Close

268.55 265.70 268.15 266.35 265.00

129

11-May-10 10-May-10 7-May-10 6-May-10 5-May-10 4-May-10 3-May-10

263.00 260.00 257.00 261.60 260.00 266.00 265.05

264.90 262.65 260.90 262.50 264.00 266.50 265.45

258.35 257.50 253.85 255.60 259.65 261.00 262.00

259.00 261.85 258.95 258.95 262.65 261.65 264.20

466,400 133,500 155,700 192,400 211,100 672,600 133,000

259.00 261.85 258.95 258.95 262.65 261.65 264.20

Close
270 268 266 264 262 260 258 256 254 3-May-10 4-May-10 5-May-10 6-May-10 7-May-10 8-May-10 9-May-10 10-May-10 11-May-10 12-May-10 13-May-10 14-May-10 15-May-10 16-May-10 17-May-10 18-May-10

Close

ONGC
3rd may 2010

Natural Gas Prices Hiked; Power, CNG Tariff to go up

6th may2010

The Cabinet hiked price of gas sold to power, fertilizer and city gas projects from Rs 3,200 per thousand cubic meters (USD 1.79 per million British

130

thermal unit) to Rs 6,818 per thousand cubic meters (USD 3.818 per mmBtu), Information and Broadcasting Minister Ambika Soni said.
8th may

Fertilizer prices will not be increases as the government subsidises the sector. But today's decision would result in rise in fertiliser subsidy by Rs 3,500 crore

14th may

The new gas price on an overall basis would result in 2.75 per cent increase in power tariff and up to 20 per cent hike in price of compressed natural gas (CNG) sold to automobiles in cities like Delhi
18th may

ONGC and OIL have been making substantial losses in their gas business. The (current) low prices of gas have discouraged national oil companies from making investment (in raising dwindling output

PRICES Date Open High Low Close Volume Adj Close*

17-May-10 14-May-10 13-May-10 12-May-10 11-May-10 10-May-10 7-May-10 6-May-10 5-May-10 4-May-10 3-May-10

1,030.30 1,045.90 1,030.25 1,034.80 1,049.60 1,054.00 1,025.15 1,030.00 1,035.10 1,048.25 1,050.00

1,039.00 1,055.50 1,051.55 1,035.90 1,049.60 1,054.60 1,061.60 1,049.50 1,043.65 1,057.50 1,058.70

1,020.00 1,040.00 1,028.00 1,022.80 1,020.80 1,036.00 1,025.15 1,021.10 1,019.00 1,039.60 1,043.75

1,027.00 1,043.00 1,044.40 1,028.00 1,032.50 1,053.00 1,040.00 1,043.00 1,027.70 1,042.00 1,050.30

542,300 852,900 1,250,000 797,100 1,022,300 624,300 1,138,400 786,100 447,700 376,900 540,500

1,027.00 1,043.00 1,044.40 1,028.00 1,032.50 1,053.00 1,040.00 1,043.00 1,027.70 1,042.00 1,050.30

131

Close
1,060.00 1,050.00 1,040.00 1,030.00 1,020.00 1,010.00 Close

HDIL
PRICES Date Open High Low Close Volume Adj Close*

18-May-10 17-May-10 14-May-10 13-May-10 12-May-10 11-May-10 10-May-10 7-May-10 6-May-10 5-May-10 4-May-10 3-May-10

246.85 249.90 255.85 252.00 247.95 259.00 242.00 249.75 248.00 248.50 264.00 272.00

248.10 249.90 258.60 260.00 253.90 259.00 258.50 249.75 255.00 253.55 265.70 272.00

239.30 242.20 251.40 251.95 244.35 245.25 240.75 234.10 245.00 240.30 250.35 260.60

241.60 245.95 251.65 255.35 249.20 245.55 257.75 238.30 249.85 252.80 250.65 262.35

6,330,900 4,017,800 6,208,500 7,160,800 6,079,800 6,433,500 6,420,900 6,326,200 8,997,200 7,893,400 5,761,600 5,333,400

241.60 245.95 251.65 255.35 249.20 245.55 257.75 238.30 249.85 252.80 250.65 262.35

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Close
265 260 255 250 245 240 235 230 225

Close

9-May-10

3-May-10

4-May-10

5-May-10

6-May-10

7-May-10

8-May-10

14-May-10

10-May-10

11-May-10

12-May-10

13-May-10

15-May-10

16-May-10

17-May-10

Ambuja cement
3rd may Ambuja Cements reported increase 15.85% in cement production at 1.90 million tons in the month of May 2010 as compared to 1.64 million tons for the same month last year. 6th may Cement despatches increased by 14.11% during the month of May 2010 to stand at 1.86 million tons compared with 1.63 million tons in May 2009.

8th may Production during January - May stood at 9.15 million tons, up from 8.25 million tons in the corresponding period last year, while despatches amounted to 9.11 million tons, compared with 8.27 million tons in January- May 2009. 16 may Shares of the company declined Rs 1.8, or 1.65%, to settle at Rs 107. The total volume of shares traded was 123,822 at the BSE (Tuesday).

133

18-May-10

PRICES Date Open High Low Close Volume Adj Close*

18-May-10 17-May-10 14-May-10 13-May-10 12-May-10 11-May-10 10-May-10 7-May-10 6-May-10 5-May-10 4-May-10 3-May-10

104.25 104.00 109.00 110.00 109.90 114.75 111.25 110.50 115.80 113.50 123.00 118.30

108.70 105.90 110.45 110.85 111.95 114.95 115.85 112.75 116.85 116.90 123.00 121.30

104.10 102.05 104.55 107.20 108.60 110.70 111.25 103.80 110.40 112.55 115.25 118.30

107.75 105.05 105.45 110.50 109.60 110.90 114.50 111.40 111.40 115.95 115.90 120.55

2,415,100 2,061,100 1,766,000 2,287,400 1,523,400 1,447,700 2,211,700 7,043,900 3,460,000 1,447,700 6,992,200 2,831,900

107.75 105.05 105.45 110.50 109.60 110.90 114.50 111.40 111.40 115.95 115.90 120.55

Close
125 120 115 110 105 100 95

Close

9-May-10

3-May-10

4-May-10

5-May-10

6-May-10

7-May-10

8-May-10

10-May-10

11-May-10

12-May-10

13-May-10

14-May-10

15-May-10

16-May-10

17-May-10

Hcl
3rd may, 2010

134

18-May-10

HCL Technologies acquired the UK-based systems application integrator, Axon Global, in what was the largest ever buy by an India-based service provider.
6 th may Hidden Giant: HCL

Lindsey Chester met with Rajiv Swarup, Corporate Vice President, in HCLs office on Symphony Lake in Regency Park
7th may

Going social in India: The rise of Web 2.0 in the developing world HCL CEO Vineet Nayar says social media can come in many different forms
10th may, 2010

HCL AXON Launches iControl, a Utility Web Enablement Solution for Customer Billing and AMI
15th may, 2010

HCL scouts for R&D firms in Europe

PRICES Date Open High Low Close Volume Adj Close*

18-May-10 17-May-10 14-May-10 13-May-10 12-May-10 11-May-10 10-May-10 7-May-10 6-May-10

398.00 404.40 396.50 392.00 389.85 410.00 398.00 394.15 406.50

402.60 404.40 409.00 400.80 394.50 410.00 403.25 395.00 407.85

393.00 392.00 395.00 392.00 385.00 386.00 389.35 381.30 393.20

397.00 393.25 405.95 397.85 393.50 386.10 401.50 387.90 399.60

433,700 420,100 1,106,100 651,800 636,000 532,300 864,100 1,209,000 819,500

397.00 393.25 405.95 397.85 393.50 386.10 401.50 387.90 399.60

135

5-May-10 4-May-10 3-May-10

395.00 391.00 390.00

408.50 402.00 394.20

390.00 391.00 385.15

405.70 399.00 391.05

2,185,300 1,897,500 846,100

405.70 399.00 391.05

Close
410 405 400 395 390 385 380 375 3-May-10 4-May-10 5-May-10 6-May-10 7-May-10 8-May-10 9-May-10 10-May-10 11-May-10 12-May-10 13-May-10 14-May-10 15-May-10 16-May-10 17-May-10 18-May-10

Close

Maruti udyog ltd

PRICES Date Open High Low Close Volume Adj Close*

18-May-10 17-May-10 14-May-10 13-May-10 12-May-10 11-May-10 10-May-10 7-May-10 6-May-10 5-May-10 4-May-10

1,241.30 1,250.00 1,269.00 1,275.00 1,270.00 1,300.00 1,291.20 1,261.00 1,284.00 1,247.70 1,288.00

1,252.45 1,254.80 1,281.00 1,285.60 1,286.80 1,300.00 1,299.90 1,288.00 1,289.00 1,290.00 1,297.45

1,236.00 1,237.05 1,246.90 1,270.35 1,262.00 1,265.00 1,276.70 1,250.00 1,265.25 1,233.80 1,257.50

1,242.00 1,239.00 1,248.25 1,271.85 1,265.30 1,267.00 1,291.90 1,283.00 1,286.00 1,287.30 1,258.00

462,400 322,900 443,300 662,600 589,700 395,000 563,900 488,300 394,500 550,700 457,000

1,242.00 1,239.00 1,248.25 1,271.85 1,265.30 1,267.00 1,291.90 1,283.00 1,286.00 1,287.30 1,258.00

136

3-May-10

1,275.00

1,294.25

1,263.35

1,282.50

599,800

1,282.50

Close
1,300.00
1,280.00 1,260.00 1,240.00 1,220.00 1,200.00 3-May-10 4-May-10 5-May-10 6-May-10 7-May-10 8-May-10 9-May-10 10-May-10 11-May-10 12-May-10 13-May-10 14-May-10 15-May-10 16-May-10 17-May-10 18-May-10

Close

Tata communication ltd (tcl) $

PRICES Date Open High Low Close Volume Adj Close*

18-May-10 17-May-10 14-May-10 13-May-10 12-May-10 11-May-10 10-May-10 7-May-10 6-May-10 5-May-10 4-May-10 3-May-10

10.44 11.00 11.21 11.34 11.68 11.43 11.26 11.16 11.58 11.65 12.00 12.10

10.85 11.00 11.21 11.42 11.68 11.73 11.72 11.32 11.59 11.82 12.00 12.29

10.38 10.55 10.83 11.20 11.41 11.43 11.25 11.00 11.01 11.12 11.50 12.01

10.65 10.72 10.96 11.23 11.49 11.54 11.66 11.21 11.16 11.51 11.71 12.14

76,300 114,300 39,800 45,600 44,700 74,500 85,000 91,100 80,800 81,400 110,500 23,900

10.65 10.72 10.96 11.23 11.49 11.54 11.66 11.21 11.16 11.51 11.71 12.14

137

3rd may

Tata Communications and Rendezvous Hospitality Group Open Singapores First Public Room Telepresence Facility
5th may, 2010

Tata Communications and Rendezvous Hospitality Group Open Singapore's First Public Room Telepresence Facility
May 7, 2010

Tata Communications FY2009-10 consolidated revenues up 10.7 % to Rs 11,026 crores

May 11, 2010

Nimbus Communications Cricketnirvana.com to stream live cricket matches using Tata Communications CDN platform
May 14, 2010

Tata Communications partners with Infinity Africa to expand its global network and service offering into Tanzania
may 15, 2010

Tata Communications extends its reach to Russia

138

Close
12.5 12 11.5 11 10.5 10 9.5 Close

CONCLUSION
1. It appears that prices of individual stocks overreact to information and then correct themselves. 2. FIIS and FDIS are the major players of the current Indian stock market. 3. Government policies and reports affect the stock market. 4. Competitors effect means if one suffers loss, then its competitors securities prices increases. 5. Interdependence effect means if one industry suffers and another industry depend upon it then its securities prices also show that type of volatility. 6. Volatile effect of world indices and other stock exchanges. 7. From time to time all three levels of market efficiency reflect in the NSE STOCK EXCHANGES. 8. ALMOST 95% both the major stock exchanges NSE and BSE moves in the same direction. 9. Almost 75% times investors react according to the prediction of leading news channels like CNBC, ET NOW, ZEE BUSINESS.

139

10. Most of the companies release relevant information according to their security prices.

BIBLIOGRAPHY
Books Referred:
C R Kothari, Research Methodology,1st edition, New Age International

Publishers, ISBN: 978-81-224-1522-3 M. Y. Khan Financial Services Prasanna Chandra Security Analysis & Portfolio Management: A Review, Finance India, Vol. II No. 1, March 1989.

Websites:
www.reliancemoney.com

www.google.com www.nseindia.com www.bseindia.com www.moneycontrol.com

www.nseguide.com

140