Project Report on Icm

8/3/2019 Project Report on Icm

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PROJECT REPORT ON

INDIAN CAPITAL MARKET

Submitted To- Submitted By-

DR.Ashish pandey

AMIT RAWAT

AMITABH ANAND

EKTA AGGARWAL

ILA SHARMA

MEGHA MITTAL

PALLAVI JAIN

INDIAN CAPITAL MARKET Page 1


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ACKNOWLEDGEMENT

We are extremely thankful to our teacher Dr. Ashish pandey

for giving us the opportunity to undertake this project report for

indain capital market and for his overall support, valuable

guidance, astute judgment, constructive criticism and an eye for

perfection without which this project would not have been in its

present shape.



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Table of contents

S.NO. PARTICULARS

1. ICICI INTRODUCTION

Companys financials

ICICI Share price movement

ICICI Graphs

Main news ICICI

2. HDFC INTRODUCTION

HDFC Share price movement

HDFC Graphs

Main news HDFC

3. SBI INTRODUCTION

SBI Share price movement

SBI Graphs

Main news SBI

4. BUDGET ANALYSIS



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ICICI INTRODUCTION

ICICI Bank is India's second-largest bank with total assets of Rs. 3,562.28

billion (US$ 77 billion) at December 31, 2009 and profit after tax Rs. 30.19

billion (US$ 648.8 million) for the nine months ended December 31, 2009. TheBank has a network of 1,665 branches and about 4,883 ATMs in India and

presence in 18 countries.

ICICI Bank offers a wide range of banking products and financial services to

corporate and retail customers through a variety of delivery channels and



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through its specialized subsidiaries and affiliates in the areas of investment

banking, life and non-life insurance, venture capital and asset management.

The Bank currently has subsidiaries in the United Kingdom, Russia andCanada, branches in United States, Singapore, Bahrain, Hong Kong, Sri

Lanka, Qatar and Dubai International Finance Centre and representative

offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand,

Malaysia and Indonesia. Our UK subsidiary has established branches in

Belgium and Germany.

ICICI Bank's equity shares are listed in India on Bombay Stock Exchange

and the National Stock Exchange of India Limited and its AmericanDepositary Receipts (ADRs) are listed on the New York Stock Exchange

(NYSE).

COMPANYS FINANCIALS

BALANCE SHEET

Year 2009/03 2008/03

SOURCE OF FUNDS

EQUITY CAPITAL 1,113.29 1,112.68PREFRENTIAL CAPITAL 350 350

RESERVES AND SURPLUS 48,419.73 45,357.53

DEPOSITS 218,347.82 244,431.05

BORROWINGS MADE BY THEBANK 67,323.69 65,648.43



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TOTAL 335,554.53 356,899.69

APPLICATION OF FUNDS

GROSS BLOCK 7,443.71 7,036.00

ACCUMULATEDDEPRECATION 3,642.09 2,927.11

NET BLOCK 3,801.62 4,108.89

NETCURRENTASSETS

TOTAL 335,554.53 356,899.69

SHARE PRICE MOVEMENT



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ICICI BANK

Date Open Pri Close PricSpread HiSpread Cl change i ROI(%) ROI(%)NSE2-Mar-10 885.1 897.5 16.6 12.4 18.6 1.40 1.65

3-Mar-10 902 908.6 17.35 6.6 129.3 0.73 1.444-Mar-10 912 897.95 23.95 -14.05 32.9 -1.54 -0.33

5-Mar-10 901.05 901.8 16.55 0.75 25.55 0.08 0.16

8-Mar-10 915 922.75 13.6 7.75 11.9 0.85 0.63

9-Mar-10 922.1 924.8 24.6 2.7 24.25 0.29 -0.38

10-Mar-10 925 917.8 21.2 -7.2 17 -0.78 0.29

11-Mar-10 915 931.4 21 16.4 16 1.79 0.33

12-Mar-10 935 936.9 9.05 1.9 23 0.20 0.1

15-Mar-10 930 923.4 16.6 -6.6 26 -0.71 -0.11

16-Mar-10 922.5 930.8 27.85 8.3 38 0.90 1.35

17-Mar-10 938.5 949.1 17 10.6 14 1.13 0.64

18-Mar-10 953 960.4 16.75 7.4 72 0.78 0.26

19-Mar-10 962 954.85 15.85 -7.15 20 -0.74 0.3

22-Mar-10 934 935.45 24.9 1.45 21 0.16 -1.06

23-Mar-10 939.8 925.6 23.4 -14.2 26 -1.51 0.3725-Mar-10 926 929.95 22 3.95 44 0.43 0.67

26-Mar-10 940 947.7 17.05 7.7 54 0.82 0.41

29-Mar-10 944 953.05 19.15 9.05 27 0.96 0.36

30-Mar-10 941 960.05 27 19.05 9 2.02 -0.76

31-Mar-10 965 952.7 20.5 -12.3 29 -1.27 -0.21


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Fig 1.1 ICICI share price fluctuation in the march month



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MAIN NEWS RELATED TO ICICI

ICICI Venture may invest Rs 120 crore in Star Health and Allied Insurance

Company Limited for a 15- 20% stake.This would make the value of insurance

company as Rs 600-800 crore

ICICI Bank stock price has seen constant declines since middle of2008. Recent hammering of the stock has taken the share price below

its Book Value. Let's examaine if there are some good resons for the

drastic declines(12TH MARCH 2010) ICICI Bank: Hold for a price target of Rs1065

At CMP of Rs964, the stock is trading at a P/E multiple of 29.8 times its FY09EPS of Rs32.4(19 March 2010)

ICICI Bank ups auto loan rates by upto 0.5 per cent(4TH

MARCH 2010) ICICI Bank also withdrew its special home-loan scheme,

under which it offered home-loans for 8.25 per cent fixedrate for two years, effective from March 1, the spokespersonadded(4TH MARCH 2010)

ICICI Bank has sold a 13-storey residential building atPrabhadevi in Central Mumbai occupied by the banks topbrass as part of a cost-cutting exercise. While the sale price

http://www.bankbazaar.com/guide/banks-in-india/http://www.bankbazaar.com/guide/banks-in-india/http://www.valuenotes.com/valuenotes/research/viewarticle.asp?Id=188&Cat=C&Current=0&ArticleCd=151576http://www.bankbazaar.com/guide/banks-in-india/http://www.valuenotes.com/valuenotes/research/viewarticle.asp?Id=188&Cat=C&Current=0&ArticleCd=151576


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is not known yet, the deal is expected to run into severalcrores. (9TH MARCH 2010)

ICICI thinks growth, Rajiv Sabharwal returns as Head of

Retail Ops ICICI, Yes Bank steal the show at IIM-A, pick up 13

candidates each(11TH MARCH 2010)

ICICI gets okay to offer retail services in Singapore(23THMARCH 2010)

Sensex tests 16800; Infosys, M&M, ICICI Bank down(4TH

MARCH 2010) ICICI Bank cuts new home loan rates by 25-50 bps(9TH

MARCH 2010)

Infosys, Genpact, PepsiCo, ICICI to start paying bonuses(8TH

MARCH 2010)

Shikha Sharma(The Economic Times businesswoman of theyear 2008) a hand that rocks ICICI group

ICICI & SBI, our top picks in banking stocks: Emkay GlobalFinancial Services(11TH MARCH 2010)

INTRODUCTION OF HDFC

HDFC or Housing Development Finance Corporation Limited,

founded 1977 by Hasmukhbhai Parekh, is an Indian company

which is primarily in the business of providing home loans.

HDFC Bank (NYSE: HDB), one of the first, new generation,

tech-savvcommercial banks of India



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It, was incorporated in August 1994, after the Reserve Bank of

India allowed setting up of Banks in the private sector

The Bank was promoted by the Housing Development FinanceCorporation Limited, a premier housing finance company (set up

in 1977) of India.

Net Profit for the year ended March 31, 2006 was Rs. 1,141

crores.

Results of the latest quarter ended June 2007, indicate that the

Bank continues to grow in a steady manner.

Over a decade of its operations, HDFC Bank has been

recogniation rated and awarded by a number of organizations



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HDFC

Date Open P Close PrSpread Spread change i ROI (%) ROI(%)NSE2-Mar-10 1720 1744.65 53.5 24.65 18.6 1.43 1.65

3-Mar-10 1747.1 1776.1 37.85 29 129.3 1.66 1.444-Mar-10 1774 1781.45 34 7.45 32.9 0.42 -0.33

5-Mar-10 1800 1784.5 38.65 -15.5 25.55 -0.86 0.16

8-Mar-10 1799 1780.35 25.45 -18.65 11.9 -1.04 0.63

9-Mar-10 1780.35 1811.45 56.7 31.1 24.25 1.75 -0.38

10-Mar-10 1809.85 1814.8 25.8 4.95 17 0.27 0.29

11-Mar-10 1818 1827.85 30 9.85 16 0.54 0.33

12-Mar-10 1830 1800.8 43 -29.2 23 -1.60 0.10

15-Mar-10 1801.1 1811.2 24 10.1 26 0.56 -0.11

16-Mar-10 1801 1804.75 41.25 3.75 38 0.21 1.35

17-Mar-10 1813.9 1807.25 19.65 -6.65 14 -0.37 0.64

18-Mar-10 1809 1803.05 17.35 -5.95 72 -0.33 0.26

19-Mar-10 1805 1818.2 28.9 13.2 20 0.73 0.30

22-Mar-10 1797.1 1838.45 57.9 41.35 21 2.30 -1.06

23-Mar-10 1854 1884.75 55 30.75 26 1.66 0.37

25-Mar-10 1880 1925.85 57.75 45.85 44 2.44 0.67

26-Mar-10 1934.95 1948.1 38.7 13.15 54 0.68 0.41

29-Mar-10 1948 1964.95 49.85 16.95 27 0.87 0.36

30-Mar-10 1968 1906.4 67.7 -61.6 9 -3.13 -0.76

31-Mar-10 1907 1932.5 44.1 25.5 29 1.34 -0.21



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Fig 1.1 HDFC share price fluctuation in the march month



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MAIN NEWS RELATED TO HDFC

HDFC Bank, ICICI, Kotak hike rates for home, car loans(5TH

MARCH 2010)

Nifty choppy; Infosys, HDFC Bank, Ambuja Cement

down(30TH MARCH 2010)

HDFC, Bank of Baroda strong banking stocks(22TH MARCH

2010)



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Maytas Infra, HDFC Bank fix repayment plan(3TH MARCH

2010)

Indian ADRs gain $1.3 bn in past week(28TH MARCH 2010)

HDFC to transfer stakes in unlisted companies to SPV(27TH

MARCH 2010)

INTRODUCTION OF SBI



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The evolution of State Bank of India can be traced back to the first decade of the19th century. It began with the establishment of the Bank of Calcutta in Calcutta,on 2 June 1806. The bank was redesigned as the Bank of Bengal, three years

later, on 2 January 1809. It was the first ever joint-stock bank of the British India,established under the sponsorship of the Government of Bengal. Subsequently,the Bank of Bombay (established on 15 April 1840) and the Bank of Madras(established on 1 July 1843) followed the Bank of Bengal. These three banksdominated the modern banking scenario in India, until when they wereamalgamated to form the Imperial Bank of India, on 27 January 1921.

An important turning point in the history of State Bank of India is the launch of thefirst Five Year Plan of independent India, in 1951. The Plan aimed at serving theIndian economy in general and the rural sector of the country, in particular. Untilthe Plan, the commercial banks of the country, including the Imperial Bank of

India, confined their services to the urban sector. Moreover, they were notequipped to respond to the growing needs of the economic revival taking shapein the rural areas of the country. Therefore, in order to serve the economy as awhole and rural sector in particular, the All India Rural Credit Survey Committeerecommended the formation of a state-partnered and state-sponsored bank.

The All India Rural Credit Survey Committee proposed the take over of theImperial Bank of India, and integrating with it, the former state-owned or state-associate banks. Subsequently, an Act was passed in the Parliament of India inMay 1955. As a result, the State Bank of India (SBI) was established on 1 July1955. This resulted in making the State Bank of India more powerful, because asmuch as a quarter of the resources of the Indian banking system were controlleddirectly by the State. Later on, the State Bank of India (Subsidiary Banks) Actwas passed in 1959. The Act enabled the State Bank of India to make the eightformer State-associated banks as its subsidiaries.

The State Bank of India emerged as a pacesetter, with its operations carried outby the 480 offices comprising branches, sub offices and three Local HeadOffices, inherited from the Imperial Bank. Instead of serving as mere repositoriesof the community's savings and lending to creditworthy parties, the State Bank ofIndia catered to the needs of the customers, by banking purposefully. The bank

served the heterogeneous financial needs of the planned economicdevelopment.

Branches



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The corporate center of SBI is located in Mumbai. In order to cater to differentfunctions, there are several other establishments in and outside Mumbai, apartfrom the corporate center. The bank boasts of having as many as 14 local head

offices and 57 Zonal Offices, located at major cities throughout India. It isrecorded that SBI has about 10000 branches, well networked to cater to itscustomers throughout India.

ATM Services

SBI provides easy access to money to its customers through more than 8500ATMs in India. The Bank also facilitates the free transaction of money at theATMs of State Bank Group, which includes the ATMs of State Bank of India aswell as the Associate Banks State Bank of Bikaner & Jaipur, State Bank ofHyderabad, State Bank of Indore, etc. You may also transact money through SBICommercial and International Bank Ltd by using the State Bank ATM-cum-Debit

(Cash Plus) card.

Subsidiaries

The State Bank Group includes a network of eight banking subsidiaries andseveral non-banking subsidiaries. Through the establishments, it offers variousservices including merchant banking services, fund management, factoringservices, primary dealership in government securities, credit cards and insurance



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SBI

Date Open PrClose PriSpread Spread change i ROI(%) ROI(%)NSE2-Mar-10 1990 1988.5 33 -1.5 18.6 -0.08 1.65

3-Mar-10 1995 2019.65 39.2 24.65 129.3 1.24 1.44

4-Mar-10 2027 2032.65 27.7 5.65 32.9 0.28 -0.33

5-Mar-10 2040 2046.45 33.5 6.45 25.55 0.32 0.16

8-Mar-10 2065 2070.25 81.75 5.25 11.9 0.25 0.63

9-Mar-10 2040 2043.85 42 3.85 24.25 0.19 -0.38

10-Mar-10 2042 2036.1 21.5 -5.9 17 -0.29 0.29

11-Mar-10 2037 2045.25 32.4 8.25 16 0.41 0.33

12-Mar-10 2050 2045.5 21.35 -4.5 23 -0.22 0.1

15-Mar-10 2045 2015.9 33.1 -29.1 26 -1.42 -0.11

16-Mar-10 2014.2 2016.1 27 1.9 38 0.09 1.35

17-Mar-10 2023.9 2026.15 25.8 2.25 14 0.11 0.64

18-Mar-10 2027.3 2029.75 35.8 2.45 72 0.12 0.26

19-Mar-10 2045 2058.5 29.1 13.5 20 0.66 0.3

22-Mar-10 2031.25 2041 40.6 9.75 21 0.48 -1.06

23-Mar-10 2058 2047.15 36.6 -10.85 26 -0.53 0.37

25-Mar-10 2042 2050.35 36.75 8.35 44 0.41 0.67

26-Mar-10 2065 2072.75 30.9 7.75 54 0.38 0.41

29-Mar-10 2075.4 2094.45 30.4 19.05 27 0.92 0.36

30-Mar-10 2099.9 2082.15 45.05 -17.75 9 -0.85 -0.76

31-Mar-10 2081.35 2079 26.5 -2.35 29 -0.11 -0.21



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MAIN NEWS RELATED TO SBI

Yes Bank & SBI, recommended stocks in banking space:

Angel Broking(29TH MARCH 2010)



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SBI is a good bank to hold for long term: Upendra

Kulkarni(10TH MARCH 2010)

SBI to tap retail bond market next year with a 10-yrissue(11TH MARCH 2010)

No proposal for merging any nationalised bank with SBI:

FinMin(16TH MARCH 2010)

SBI to retain, tweak 8% home loan scheme after March

31: Official(25TH MARCH 2010)

Govt looks to cut stake to let SBI hit D-Street(9TH

MARCH 2010) After SBI, Canara Bank to charge 8.25% on home

loans(4TH MARCH 2010)

SBI, IDBI Bank toe govt line, cut deposit rates(3RD

MARCH 2010)

SBI shortlists Visa, RBS, Global Payments for POS

partnership(6TH MARCH 2010)

Government seeks to cut stake in State Bank of India to51%(8TH MARCH 2010)

SBI plans to acquire 20-30 pc stake in TMFL: O P

Bhatt(20TH MARCH 2010)

EPFO upset over higher SBI fee, may rope in others for

PF collection(8TH MARCH 2010)

SBI to seek govt nod for Rs 20,000-cr rights issue in

FY'11(23RD

MARCH 2010)

SBI hints lending rate hike moving ahead(19TH MARCH

2010)

SBI prefers rights issue to raise capital: Bhatt(10TH

MARCH 2010)



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Merger of State Bank of Indore in Q1: Bhatt(25TH MARCH

2010)

SBI tops list of advance taxpayers for FY'10(16TH

MARCH2010)

BUDGET ANALYSIS 2010BANKING SECTOR

Banking Licences

RBI is considering giving some additional banking licenses to private sector

players.

Non Banking Financial Companies could also be considered, if they meet the

RBIs

eligibility criteria.

Public Sector Bank Capitalisation

Rs.16,500 crore provided to ensure that the Public Sector Banks are able to attaina minimum 8 per cent Tier-I capital by March 31, 2011.

Recapitalisation of Regional Rural Banks (RRB)

Government to provide further capital to strengthen the RRBs so that they have

adequate capital base to support increased lending to the rural economy.

Corporate Governance

Government has introduced the Companies Bill, 2009 in the Parliament to replace

the existing Companies Act, 1956, which will address issues related to regulation

in corporate sector in the context of the changing business environment

Following are the highlights from the budget speech:



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"The first challenge is to return the GDP growth rate of 9 percent perannum at the earliest."

"The second challenge is to deepen and broaden the agenda for inclusivedevelopment."

"There are signs of revival in domestic industry and foreign investors havealso returned to Indian markets in the last couple of months."

"It is possible that the two worst quarters since the global financialmeltdown in September 2008 are behind us."

"While the global financial condition has shown improvement over therecent month, uncertainty relating to the revival of the global economyremains. We cannot, therefore, afford to drop our guard.

"We have to continue our efforts to provide further stimulus to theeconomy."

2008/09 GDP growth seen at 6.7 pct

To return to fiscal responsibility targets "at the earliest"

Plans institutional reforms to control fiscal deficit

"It is important to recognise that almost three quarters of our oilconsumption makes through imports. Domestic prices of petrol and dieselhave to be brought in sync with the global prices of these items."

"Governnment will set up an expert group to advise for a viable andsustainable system of pricing petroleum products.

"The public sector undertakings are the wealth of the nation and part of thiswealth should rest in the hands of the people."

"While retaining at least 51 percent government equity in our enterprises, Ipropose to encourage a people's participation in our disinvestmentprogramme."



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"Here I must state clearly that public sector enterprises such as banks andinsurance companies will remain in the public sector and will be given all

support including capital infusion to grow and remain competitive."

To create an environment for private investment

To raise in a phased manner the limit for non-founder holdings in allcompanies

To ensure more flexibility to India Infrastructure Finance Co Ltd

Have asked states to remove bottlenecks on infrastructure projects

Allocates 5 bln rupees ($104 million) for Mumbai flood project

Liquefied natural gas infrastructure to be expanded

To raise allocation for National Highways development by 23 percent

To raise allocation for urban poor schemes to 39.73 billion rupees in2009/10

Targeting agriculture credit of 3.25 trillion rupees

To pay additional interest subvention of 1 percent to farmers who payshort-term farm loans on schedule

To provide additional 10 billion rupees over interim budget for irrigation

To extend agriculture debt waiver by 6 months

Plans to move towards nutrient-based subsidy regime for fertilisers

To offer direct subsidy to farmers

To extend interest subvention to exporters in 7 sectors till March 2010

To give relief to exporters hit by global financial crisis



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To allocate 40 billion rupees to encourage lending to small firms

To set aside 1 billion rupees for banking services in unbanked areas

To allocate of 391 billion rupees for rural jobs programme in 2009/10 , 144percent more than in 2008/09

To raise allocation for rural roads scheme by 59 pct in 2009/10

To raise allocation to Bharat Nirman infrastructure programme by 45percent

To allocate 70 billion rupees for rural electrification scheme

To allocate 20 billion rupees for rural housing under National Housing Bank

To set up 2 handloom clusters, 1 power loom cluster



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REFERANCES:

ECONOMIC TIMES

TIMES OF INDIA

WWW.GOOGLE.COM

THE ECONOMIC TIMES.COM

BSEINDIA.COM

NSEINDIA.COM

YAHOO STOCK ANALYSIS

http://www.google.com/http://www.google.com/

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Project Report on Icm