EQUITY INVESTMENT & ECNOMIC GROWTH IN INDIA (2000-2008)

AND MARKETING STRATEGIES OF RELIGARE

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

Presented by: Chandan Parsad

MBA (SEM) 1
Objective & Scope of Work
Introduction Religare Securities Limited
Organization Chart
Equity share introduction
Introduction Indian Equity Industry
Introduction of the Company
Analysis
Conclusion
Effect of Economic growth on Share Market
Marketing Strategies of Religare
Suggestions
Objective: The main objective of the project is to analysis the importance
of equity investment in the process of economic development in India what is
the effect of economy development and analysis the which stock is good for
investment.

Scope of Work
Equity investment in Nifty50 Index during January09 to june09
Company
1.SBI
2.Reliance Industry Ltd
3.Larsen & Tourbo Ltd
4.Tata Steel
5.Infosys Technology Ltd
6.Mahindra Satyam Computer

Effect of Economy Growth on share Market

Marketing STRATEGIES of Religare

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Religare Securities Limited (RSL), a 100% subsidiary of Religare Enterprises Limited is a
leading equity and securities firm in India.

1.RSL is a member of the National Stock Exchange of India, Bombay Stock Exchange of
India, Depository Participant with National Securities Depository Limited and Central
Depository Services (I) Limited, and is a SEBI approved Portfolio Manager.

2.Religarehas a very credible Research and Analysis division, which not only caters to the
need of our Institutional clientele, but also gives their valuable inputs to investment dealers.
3.Pan India footprint
4.Near to your home/office Religare is present in all over India
5.1800 locations across more than 460 towns & cities
6.The Company has posted a net profit of Rs 31.646 million in Q1 2009.
 Vision - To build Religare as a globally trusted brand in
the financial services domain and present it as the
‘Investment Gateway of India'.
 Mission - Providing complete financial care driven by
the core values of diligence and transparency.
 Brand Essence - Core brand essence is Diligence and
Religare is driven by ethical and dynamic processes for
wealth creation.
 Awards won by Religare Asset Management

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

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

 A shareholder is entitled to an equal distribution in any

profits, if any are decided in the form of dividends.
 Shares are often used to refer to the stock of ownership right.
 Shares also represent ownership of other classes of financial
assets, such as mutual funds.

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

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Investors: Buyers of Equity Share
Investors are those who have excess funds with them and want to
employ it for returns in future. Individuals, Association of Persons,
Companies, Mutual funds, Financial Institutions Foreign Institutional
Investors.
Major categories of investors
 Institutional Investor: A non-bank person or organization that trades
securities in large enough share quantities or dollar amounts that they
qualify for preferential treatment and lower commissions.

 Retail Investor: Individual investors who buy and sell securities for their
personal account, and not for another company or organization. Also known
as an "individual investor" or "small investor". Retail investors buy in much
smaller quantities than larger institutional investors.

 Qualified Institutional Buyer – QIB: Primarily referring to institutions

that manage at least 10 crores in securities including banks, savings and
loans institutions, insurance companies, investment companies, employee
benefit plans, or an entity owned entirely by qualified investors.
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Benefits from Equity Shares

 There are income tax advantages generally available to

corporations that invest in preferred stocks.

 One big advantage to its issuer is that it is an instrument to

raise the capital of company.

 This allows financial institutions to satisfy regulatory
requirements without diluting common shareholders. Said
another way, through preferred stock, financial institutions
are able to put on leverage while getting equity credit.

 An "individual investor" or "small investor" gets benefited

by getting interest or dividends.

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

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State Bank of India

 The evolution of State Bank of India can be traced back

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

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Reliance Group
 The Reliance Group, founded by Dhirubhai H. Ambani (1932-
2002), is India's largest private sector enterprise, with
businesses in the energy and materials value chain
 Reliance Industries Limited, is a Fortune Global 500 company
and is the largest private sector company in India.
 The Company now has operations that span from the
exploration and production of oil and gas to the manufacture
of petroleum products, polyester products.
 The world's largest producer of Polyester Fibre and Yarn
 4th largest producer of Paraxylene (PX) and Purified
Terepthalic Acid (PTA)
 6th largest producer of Mono Ethylene Glycol (MEG)
 7th largest producer of Polypropylene (PP)

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Larsen & Toubro Limited (L&T)
 Larsen & Toubro Limited (L&T) is a technology, engineering,
construction and manufacturing company. It is one of the
largest and most respected companies in India's private sector.
 Larsen & Toubro Limited is a Forbes Asia Fabulous 50
company.
Record of achievements
 India's first indigenous hydro cracker reactor
 Oil and gas platform projects executed to global benchmarks
 The world's largest continuous catalyst regeneration reactor
 Asia's highest viaduct - built for the Konkan Railway
 The world's longest product splitter
 The world's longest LPG pipeline
 Building an international class football stadium in 260 days
 India's first indigenous Hydrocracker Reactor
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Tata Steel
 Tata Steel is among the top ten steel producers in the world
 Tata Steel Limited is a Forbes Asia Fabulous 50 company.
 Tata Steel has a balanced global presence in over 50
developed European and fast growing Asian markets, with
manufacturing units in 26 countries.
 Corus’ main operating divisions comprise Strip Products,
Long Products and Distribution & Building Systems Division.
 The NatSteel group produces construction grade steel such as
rebars, ‘cut-and-bend’ cages for construction, mesh, precage
bore pile, PC wires and PC strand.
 Tata Steel Thailand produces round bars and deformed bars
for the construction industry

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Infosys Technologies
 Infosys Technologies Ltd. was started in 1981 with US$ 250.
Today, it is global leader in the "next generation" of IT and
consulting with revenues of over US$ 4 billion
 Infosys' offerings span business and technology consulting,
application services, systems integration, product engineering,
custom software development, maintenance, re-engineering,
independent testing and validation services, IT infrastructure
services and business process outsourcing
 Infosys has a global footprint with over 50 offices and
development centers in India, China, Australia, the Czech
Republic, Poland, the UK, Canada and Japan. Infosys and its
subsidiaries have 103,905 employees as on June 30, 2009.
 Infosys Technologies Ltd. is a Forbes Asia Fabulous 50
company

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 Satyam Computer Services (Mahindra Satyam) is a leading
global business and information technology services company
that leverages deep industry and functional expertise, leading
technology practices, and an advanced, global delivery model
to help clients transform their highest-value business processes
and improve their business performance
 Service Offerings
 Mechanical Engineering Solutions

1. Product Engineering
2. Manufacturing Engineering
 Hi-Tech solution

1.  Embedded Design
2.  Embedded Verification & Validation
 Geographical Information Systems
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Analysis
Fundamental Analysis
 Earnings per share (EPS) ratio
 Price earnings ratio (P/E ratio)
 Return on Shareholders Investment or Net Worth Ratio

TECHNICAL ANALYSIS
 Candlestick Chart

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Moving Average
Convergence/Divergence (MACD)

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Fundamental Analysis
Company SBI RIL L&T TATA Infosys
Factors steel

EPS (26- 86.29 78.25 49.53 72.71 66.14

mar-2007)

P/E 11.74 24.82 43.66 8.30 29.06

EPS (26- 106.56 133.82 74.34 64.14 78.15
mar-2008)
P/E 16.08 17.18 31.72 11.79 22. 84
EPS (26- 143.67 97.07 59.44 71.18 101.73
mar-2009)

P/E 7.063 16.12 27.09 5.46 17.75

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EPS Graph

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Fundamental Analysis
Company SBI RIL L&T TATA Infosys
Factors steel
Dividend 140% 110% 1100% 155% 270%
Paid
March07
Dividend 215% 130% 650% 160% 665%
Paid
March08
Dividend 290% 160% 850% 200% 470%
Paid
March09
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Dividend Graph

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

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

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TECHNICAL ANALYSIS
Prev resistance 2113
Prev support 1900
Weekly high 2113
Weekly low 1980

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

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Larsen & Toubro Limited
 INVESTMENT BENEFITS
 High Growth rate in the share price i.e. better return on
investment
 Dividends paid is also high which create confidence among the
investor
 Good Future Project
1 L&T bags RS. 6510 millions orders for projects in Hydrocarbon
Sector
2 L&T bags RS. 6510 millions Electrical Project Orders
 RISKS
 Very volatile in nature
 Conclusion:
 L&T is very good stock
 Growth of 23% over the previous year
 Fundamental is very good
 Volume in Trading is very good it show it is very active shares
 Very Stable Company
 Good for both long term and short term investor
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• TECHNICAL ANALYSIS
Prev resistance 443
Prev support 380
Weekly high 443
Weekly low 381

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
Tata Steel Limited
INSTMENT BENEFITS
 High Growth rate in the share price i.e. better return on investment
 Good Future Project
 India:
The Company has embarked upon setting up three green field steel plants in
eastern India:
 12 MTPA* plant in Jharkhand
 6 MTPA plant in Orissa
 5 MTPA plant in Chhattisgarh
 Jamshedpur Steel Works will become a 10 MTPA unit by 2010.
*MTPA = million tons per annum
 Overseas:
 Vietnam
 RISKS
 Very volatile in nature
 Conclusion:
 TATA STEEL is very good stock
 Revenues grew by 12.0%  
 Fundamental is very good
 Volume in Trading is very good it show it is very active shares
 Very Stable Company
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TECHNICAL ANALYSIS
Prev resistance 1860
Prev support 1701
Weekly high 1860
Weekly low 1748

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Infosys Technologies Ltd.
 INVESTMENT BENEFITS
 High Growth rate in the share price i.e. better return on
investment
 Dividends paid is also high which create confidence
among the investor
 Telstra Selects Infosys as a Key Partner
 27 clients were added during the quarter by Infosys and its
subsidiaries
 RISKS
 Very volatile in nature
 Conclusion:
 Infosys is very good stock
 Revenues grew by 12.7%
 Fundamental is very good
 Volume in Trading is very good it show it is very active
shares
 Very Stable Company
 Good for both long term and short term investor 34
TECHNICAL ANALYSIS
Prev resistance 89
Prev support 70
Weekly high 89
Weekly low 70

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Satyam.
 INVESTMENT BENEFITS
High Growth rate in the share price i.e. better
return on investment (150%)
RISKS
Very volatile in nature
Facing management problem
Conclusion:
Satyam is very risky stock
Net profit 4 Cr in Q1
Volume in Trading is very good it show it is
very active shares
Very Stable Company due to Mahindra group
Good for both long term and short term investor

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Effect of Economic growth on
Share Market
Three most significant to stock market investors
are inflation, gross domestic product (GDP), and
labor market data.
INFLATION
GROSS DOMESTIC PRODUCT
THE LABOR MARKET

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Economic Growth
Annual avg. share market
Year GDP Inflation NSE
2000-01 4.40% 3.74% 1336.49
2001-02 5.80% 4.28% 1077.13 
2002-03 3.80% 4.10% 1036.10  
2003-04 8.50% 3.73% 1428.13 

2004-05 7.50% 4.00% 1808.75

2005-06 9.40% 4.23% 2513.40 

2006-07 9.60% 6.33% 3572.44
2007-08 8.70% 5.44% 4735.14
2008-09 6.50% 2.31% 4349.1

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GDP & Inflation Graph

Finding
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NSE Graph

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

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

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

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