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A Report On

THE STUDY OF THE INDIAN CAPITAL MARKET & COMPARATIVE ANALYSIS OF PRICE MOVEMENT OF SHARES AND COMPANY PERFORMANCE WITH RESPECT TO INFORMATION TECHNOLOGY AND AUTOMOBILE INDUSTRY

This report is submitted as partial fulfilment of the requirement of PGDBE programme of WLCI College, Bangalore.

Submitted To:
Kanika Arora Wigan & Leigh College, India

Submitted By:
Manjeet Rana Roll No: 1109175

EXECUTIVE SUMMARY
The study of Indian capital market begins with the introduction of the capital market what is capital market & this study shows that the capital market is the backbone of the Indian economy. what is the problem in capital market in past times is revealed in the problem statement , what type of problem in the automobile industry is also described in the problem statement then after how the study is done is described in research methodology. The scenario of Indian capital market, in which how the reform of capital market takes place, is shown in that what are the different player, participants & how the capital market is works is also the part of the study, this is not technically shown. In this part what is the position of capital market of India is shown by describing the Indian economy and comparing the Indian economy with the world. How GDP, working age population & the producing age group all affects the Indian capital market is shown. GDP growth is increased by 9.31%, which is next to China. Indias global growth in Working Age Population is also highest than other country. The amount spent on infrastructure is also increased compared to last three years.

The global scenario is shown by the investment of foreign institutional investor done in Indian capital market. Capital flow from the FDI and FII has also increased as compared to last year. FII has largest shareholder in Housing Development Finance Corporation which is 64.26%. Here, description that what is the position of the listed companies; market capitalization and of Skilled Manpower and 8.9mn Qualified Engineers & turnover ratio in Indian stock market are shown. In global comparison it is also describe that India has 7.2mn available. The study also shows the companies which are listed in ADR & GDR. The efficient market hypothesis shows the importance of the information in the stock market and how market over react or under react when any information or news comes to the market. This is explained by explaining various examples. The Indian Information Technology And Automobile Industry are the study part of this report and in this the TCS (Tata Consultancy Services), Infosys, Wipro, Tata Motors, Bajaj auto & Maruti Suzuki is the scope of the study.

INTRODUCTION

Capital Market: A capital market is a market for securities (debt or equity), where business enterprises (companies) and governments can raise long-term funds. It is defined as a market in which money is provided for periods longer than a year, as the raising of short-term funds takes place on other markets (e.g., the money market). The capital market includes the stock market (equity securities) and the bond market (debt).

Two types of Markets: Capital markets may be classified as primary markets and secondary markets. In primary markets, new stock or bond issues are sold to investors via a mechanism known as underwriting. In the secondary markets, existing securities are sold and bought among investors or traders, usually on a securities exchange, over-the-counter, or elsewhere.

OVERVIEW OF THE CAPITAL MARKET IN INDIA

Evolution: Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200 years ago. The Bombay Stock Exchange was inaugurated in 1899 when the brokers formally established a stock market in India. Thus, the Stock Exchange at Bombay was consolidated. After that more & more stock exchanges have emerged in India & this forms a huge capital market in India.

Equity market in India: The Indian Equity Market is more popularly known as the Indian Stock Market. The Indian equity market has become the third biggest after China and Hong Kong in the Asian region. According to the latest report by ADB, it has a market capitalization of nearly $600 billion. As of March 2009, the market capitalization was around $598.3 billion (Rs 30.13 lakh crore) which is one-tenth of the combined valuation of the Asia region. The market was slow since early 2007 and continued till the first quarter of 2009. Stock Exchange: Stock Exchange is an Organized and regulated financial market where securities (bonds, notes, shares) are bought and sold at prices governed by the forces of demand and supply.

The Role of Stock Exchanges: Stock exchanges have multiple roles in the economy. This may include the following: Raising Capital For Businesses: The Stock Exchange provide companies with the facility to raise capital for expansion through selling shares to the investing public. Facilitating Company Growth: A takeover bid or a merger agreement through the stock market is one of the simplest and most common ways for a company to grow by acquisition or fusion. Creating Investment Opportunities For Small Investors: As opposed to other 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 the opportunity for small investors to own shares of the same companies as large investors. Barometer of the Economy: At the stock exchange, share prices rise and fall depending, largely, on market forces. Share prices 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 share prices and in general of the stock indexes can be an indicator of the general trend in the economy. Speculation: The stock exchanges are also fashionable places for speculation. In a financial context, the terms "speculation" and "investment" are actually quite specific. For instance, although the word "investment" is typically used, in a general sense, to mean any act of placing money in a financial vehicle with the intent of producing returns over a period of time, most ventured moneyincluding funds placed in the world's stock marketsis actually not investment but speculation.

The Indian market has 22 stock exchanges. The larger companies are enlisted with BSE and NSE. The smaller and medium companies are listed with OTCEI (Over The counter Exchange of India).

Bombay Stock Exchange (BSE): BSE is the oldest stock exchange in Asia. The extensiveness of the indigenous equity broking industry in India led to the formation of the Native Share Brokers Association in 1875, which later became Bombay Stock Exchange Limited (BSE). BSE is widely recognized due to its pivotal and pre-eminent role in the development of the Indian capital market. In 1995, the trading system transformed from open outcry system to an online screen-based order-driven trading system. The exchange opened up for foreign ownership (foreign institutional investment). Allowed Indian companies to raise capital from abroad through ADRs and GDRs.

Expanded the product range (equities/derivatives/debt). Introduced the book building process and brought in transparency in IPO issuance. Depositories for share custody (dematerialization of shares). Internet trading (e-broking).

BSE has a nation-wide reach with a presence in more than 450 cities and towns of India. BSE has always been at par with the international standards. It is the first exchange in India and the second in the world to obtain an ISO 9001:2000 certifications. The equity market capitalization of the companies listed on the BSE was US$1.63 trillion as of December 2010, making it the 4th largest stock exchange in Asia and the 8th largest in the world. The BSE has the largest number of listed companies in the world. As of June 2011, there are over 5,085 listed Indian companies and over 8,196 scrips on the stock exchange, the Bombay Stock Exchange has a significant trading volume. Though many other exchanges exist, BSE and the National Stock Exchange of India account for the majority of the equity trading in India.

National Stock Exchange (NSE): With the liberalization of the Indian economy, it was found inevitable to lift the Indian stock market trading system on par with the international standards. On the basis of the recommendations of high powered Pherwani Committee, the National Stock Exchange was incorporated in 1992 by Industrial Development Bank of India (IDBI), Industrial Credit and Investment Corporation of India (ICICI), Industrial Finance Corporation of India (IFCI), all Insurance Corporations, selected commercial banks and others. Trading at NSE takes place through a fully automated screen-based trading mechanism which adopts the principle of an order-driven market. Trading members can stay at their offices and execute the trading, since they are linked through a communication network. The prices at which the buyer and seller are willing to transact will appear on the screen. When the prices match the transaction will be completed and a confirmation slip will be printed at the office of the trading member. NSE has several advantages over the traditional trading exchanges. They are as follows : NSE brings an integrated stock market trading network across the nation. Investors can trade at the same price from anywhere in the country since inter-market operations are streamlined coupled with the countrywide access to the securities. Delays in communication, late payments and the malpractices prevailing in the traditional trading mechanism can be done away with greater operational efficiency and informational transparency in the stock market operations, with the support of total computerized network.

Over The Counter Exchange of India (OTCEI): The traditional trading mechanism prevailed in the Indian stock markets gave way to many functional inefficiencies, such as, absence of

liquidity, lack of transparency, unduly long settlement periods and benami transactions, which affected the small investors to a great extent. To provide improved services to investors, the country's first ring less, scrip less, electronic stock exchange - OTCEI - was created in 1992 by country's premier financial institutions - Unit Trust of India (UTI), Industrial Credit and Investment Corporation of India (ICICI), Industrial Development Bank of India (IDBI), SBI Capital Markets, Industrial Finance Corporation of India (IFCI), General Insurance Corporation and its subsidiaries and CanBank Financial Services. Compared to the traditional Exchanges, OTC Exchange network has the following advantages : OTCEI has widely dispersed trading mechanism across the country which provides greater liquidity and lesser risk of intermediary charges. Greater transparency and accuracy of prices is obtained due to the screen-based scrip less trading. Since the exact price of the transaction is shown on the computer screen, the investor gets to know the exact price at which she/he is trading. Faster settlement and transfer process compared to other exchanges.

INDIAN CAPITAL MARKET ROLE IN INVESTMENT


Capital market plays an extremely important role in promoting and sustaining the growth of an economy. It is an important and efficient conduit to channel and mobilize funds to enterprises, and provide an effective source of investment in the economy. It plays a critical role in mobilizing savings for investment in productive assets, with a view to enhancing a countrys long-term growth prospects. It thus acts as a major catalyst in transforming the economy into a more efficient, innovative and competitive marketplace within the global arena. In addition to resource allocation, capital markets also provide a medium for risk management by allowing diversification of risk in the economy. A well-functioning capital market also tends to improve information quality as it plays a major role in encouraging the adoption of stronger corporate governance principles, thus supporting a trading environment, which is founded on integrity. Capital market has played a crucial role in supporting periods of technological progress and economic development throughout history. Among other things, liquid markets make it possible to obtain financing for capital-intensive projects with long gestation periods. This certainly held true during the industrial revolution in the 18th century and continues to apply even as we have moved towards the so-called New Economy.

SPOT MARKET OR CASH MARKET


The spot market or cash market is a public financial market, in which financial instruments or commodities are traded for immediate delivery. It contrasts with a futures market in which delivery is due at a later date. A spot market can be:

an organized market, an exchange or Over-the-counter (OTC)

Spot markets can operate wherever the infrastructure exists to conduct the transaction. The spot market for most instruments exists primarily on the Internet.

DERIVATIVE MARKET
The emergence and growth of the market for derivative instruments can be traced back to the willingness of riskaverse economic agents to guard themselves against uncertainties arising out of fluctuations in asset prices. Derivatives are meant to facilitate the hedging of price risks of inventory holdings or a financial/commercial transaction over a certain period. By locking in asset prices, derivative products minimize the impact of fluctuations in asset prices on the profitability and cash flow situation of risk-averse investors, and thereby, serve as instruments of risk management. By providing investors and issuers with a wider array of tools for managing risks and raising capital, derivatives improve the allocation of credit and the sharing of risk in the global economy, lowering the cost of capital formation and stimulating economic growth. Now that world markets for trade and finance have become more integrated, derivatives have strengthened these important linkages between global markets, increasing market liquidity and efficiency, and have facilitated the flow of trade and finance. Following the growing instability in the financial markets, the financial derivatives gained prominence after 1970. In recent years, the market for financial derivatives has grown in terms of the variety of instruments available, as well as their complexity and turnover. Financial derivatives have changed the world of finance through the creation of innovative ways to comprehend, measure, and manage risks. Indias tryst with derivatives began in 2000 when both the NSE and the BSE commenced trading in equity derivatives. In June 2000, index futures became the first type of derivate instruments to be launched in the Indian markets, followed by index options in June 2001, options in individual stocks in July 2001, and futures in single stock derivatives in November 2001. Since then, equity derivatives have come a long way. New products, an expanding list of eligible investors, rising

volumes, and the best risk management framework for exchange-traded derivatives have been the hallmark of the journey of equity derivatives in India so far. Indias experience with the equity derivatives market has been extremely positive. The derivatives turnover on the NSE has surpassed the equity market turnover. The turnover of derivatives on the NSE increased from ` 23,654 million in 20002001 to ` 292,482,211 million in 20102011, and reached ` 157,585,925 million in the first half of 20112012. The average daily turnover in these market segment on the NSE was ` 1,151,505 million in 20102011 compared to ` 723,921 in 20092010. India is one of the most successful developing countries in terms of a vibrant market for exchange-traded derivatives. This reiterates the strengths of the modern development in Indias securities markets, which are based on nationwide market access, anonymous electronic trading, and a predominant retail market. There is an increasing sense that the equity derivatives market plays a major role in shaping price discovery.

IT & ITES INDUSTRY IN INDIA

Introduction
The Indian Information Technology (IT) and Information Technology enabled Services (ITeS) sectors go hand-in-hand in every aspect. The industry has not only transformed India's image on the global platform, but also fuelled economic growth by energising higher education sector (especially in engineering and computer science). The industry has employed almost 10 million Indians and hence, has contributed a lot to social transformation in the country. Furthermore, Indian firms, across all other sectors, largely depend on the IT & ITeS service providers to make their business processes efficient and streamlined. Indian manufacturing sector has the highest IT spending followed by automotive, chemicals and consumer products industries. Industry body National Association of Software and Services Companies (Nasscom) predicts that the ITeS industry will bring in around US$ 225 billion by 2020, wherein 80 per cent of the growth would come from the presently untapped sectors and regions. The IT & ITes sector includes IT services, engineering design and R&D services, ITES (ITenabled services) or BPO and hardware. Today IT and ITeS sectors lead the economic growth in terms of employment, export promotion, revenue generation and standards of living. As per

NASSCOM estimates, IT/ITeS sector (excluding hardware) revenues are estimated at USD 87.6 billion in FY 2011-12; and the industry is expected to grow by 19 per cent during FY 2012-13. The IT/ITeS sector has led to employment opportunities, both direct and indirect, of nearly 2.8 million and around 8.9 million respectively. This growth is expected to increase to more than 14 million (direct and indirect) by 2015 and to around 30 million by 2030. The market size of the industry is expected to rise to USD 225 billion by 2020 considering India's competitive position, growing demand for exports, Government policy support, and increasing global footprint. IT/ITeS industry has led India's economic growth and this sector's contribution to the national GDP has risen from 1.2 per cent in 1997-98 to an estimated 7.5 per cent in 2011-12. IT/ITES industries are highly localized and clustered in seven cities as of today. These are: Bangalore, Hyderabad, Chennai, Gurgaon/Noida/New Delhi, Kolkata, Mumbai and Pune. Infrastructure limits and scarcity of land has recently led to expansion to newer places like Ahmedabad, Bhubaneshwar, Chandigarh, Coimbatore, Jaipur, Kochi, Madurai, Mangalore, Mysore and Trivandrum.

Market Size
The Indian IT & ITES industry has continued to perform its role as the most consistent growth driver for the economy. Service, software exports and business process outsourcing (BPO) remain the mainstay of the sector. Over the last five years, the IT & ITES industry has grown at a remarkable pace. A majority of the Fortune 500 and Global 2000 corporations are sourcing IT/ITES from India and it is the premier destination for the global sourcing of IT & ITES accounting for 55 per cent of the global market in offshore IT services and garnering 35 per cent of the ITES/BPO market. India's IT and BPO sector exports are expected to grow by 12-14 per cent in FY14 to touch US$ 84 billion - US$ 87 billion, according to Nasscom. Internet industry of India is expected to contribute US$ 100 billion to the country's gross domestic product (GDP) and generate about 22 million jobs by 2015, as per a report titled 'Online and Upcoming: The internet's Impact on India', released by McKinsey and Co. IT spending in India is projected to reach US$ 71.5 billion in 2013, an increase of 7.7 per cent as compared to US$ 66.4 billion projected for 2012, as per a report by Gartner.

Investments
Indian IT's core competencies and strengths have placed it on the international canvas, attracting investments from major countries.

Between April 2000 and December 2012, the computer software and hardware sector attracted cumulative foreign direct investment (FDI) of Rs 52,377.08 crore (US$ 9.63 billion), according to the Department of Industrial Policy and Promotion (DIPP). More recently, online retailing, cloud computing and e-commerce are the major driving forces behind the rapidly increasing growth in the IT industry. Online shopping has increased with the emergence of internet retailing and e-commerce.

Factors Leading To Growth In The IT/ITes Sector Are:


Low operating costs and tax advantage. Favourable government policies. Technically qualified personnel easily available in the country. Rapid adoption of IT technologies in major sectors as Telecom, Manufacturing and BFSI. Strong growth in export demand from new verticals and non-traditional sectors as public sector, media and utilities. Use of new and emerging technologies such as cloud computing. SEZ as growth drivers; as more of SEZs are now being set up in Tier II cities and about 43 new tier II/III cities are emerging as IT delivery locations.

All these factors have given IT/ITES industry in India a strong competitive position with high market share.

Employment Trends
As per the Economic Survey 2011-12, the IT/ITeS industries has added 7.96 lakh jobs in one year, in the period ending September 2011. According to NASSCOM, employee base in the rural areas is expected to increase by over 10 times by 2013-14, compared to 5000 in 2009-10. According to a customer poll conducted by Booz and Co, India is the most preferred destination for engineering offshoring, which are encouraging foreign companies to offshore complete product responsibility to Indian ITeS companies. Hyderabad is fast becoming the IT/ITes hub of India with new players hankering to get a foothold here, and existing players continuing to hire aggressively. Large companies such as Infosys, TCS, Genpact, Deloitte, Facebook, Bank of America, Thomson Reuters, Amazon, Google, Cognizant, Franklin Templeton among others, are growing their presence in the state.

According to Andhra Pradesh Government's estimates, the total IT/ITeS sector hiring for 201213 could be at about 50,000 professionals.

Internet Trends
More recently, online retailing, cloud computing and e-commerce are leading to rapid growth in the IT industry. Online shopping is fast gaining popularity with the emergence of internet retailing and e-commerce. According to the Internet and Mobile Association of India (IAMAI) the number of Internet users in the country is more than 121 million, out of which 17 million are online shoppers. Increasing internet penetration and affordability for personal computers has led to this rapid numbers, and these are expected to triple by 2015. According to IAMAI, online sales of branded apparel almost doubled in volume to 4.99 million pieces during April 2012, as against 2.54 million in the same month a year ago. Also, E-ticketing continued to grow with irctc.com recording 5.56 million bookings in April, 2012, as compared to 2.26 million bookings in April 2011.

Government Initiatives
In the twelfth Five Year Plan (2012-17), the Department of Information Technology proposes to strengthen and extend the existing core infrastructure projects to provide more horizontal connectivity, build redundancy connectivity, undertake energy audits of State Data Centers (SDCs) etc. The core infrastructure including fibre optic based connectivity will be leveraged and additional 150,000 Common Service Centres (CSCs) will be setup to create the right Governance and service delivery ecosystem at the Panchayats.

AUTOMOBILE INDUSTRY IN INDIA

The Indian automotive industry has emerged as a 'sunrise sector' in the Indian economy. India is emerging as one of the world's fastest growing passenger car markets and second largest two wheeler manufacturer. It is also home for the largest motor cycle manufacturer and fifth largest commercial vehicle manufacturer. India is emerging as an export hub for sports utility vehicles (SUVs). The global automobile majors are looking to leverage India's cost-competitive manufacturing practices and are assessing

opportunities to export SUVs to Europe, South Africa and Southeast Asia. India can emerge as a supply hub to feed the world demand for SUVs. India also has the largest base to export compact cars to Europe. Moreover, hybrid and electronic vehicles are new developments on the automobile canvas and India is one of the key markets for them. Global and Indian manufacturers are focussing their efforts to develop innovative products, technologies and supply chains. The automotive plants of global automakers in India rank among the top across the world in terms of their productivity and quality. Top auto multinational companies (MNCs) like Hyundai, Toyota and Suzuki rank their Indian production facilities right on top of their global pecking order.

Key Statistics
The amount of cumulative foreign direct investment (FDI) inflow into the automobile industry during April 2000 to January 2013 was worth US$ 7,653 million, amounting to 4 per cent of the total FDI inflows (in terms of US$), as per data published by Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce. The Indian small and light commercial vehicle segment is expected to more than double by 2015-16 and grow at 18.5 per cent compound annual growth rate (CAGR) for the next five years, according to a report titled, 'Strategic Assessment of Small and Light Commercial Vehicles Market in India' by Frost & Sullivan. The light commercial vehicles (LCV) market - both passenger and goods carrier is estimated to register a sales growth of around 20 per cent during FY 2012-FY 2015, as per a RNCOS report titled, "India LCV Market Outlook". India is the world's second-largest heavy commercial vehicle market. The RNCOS report, "India MCV and HCV Market Outlook", observed that infrastructure boom and emergence of hub and spoke model, among other factors have given a new dimension to the medium and heavy goods carrier commercial vehicles' sector in India. It is anticipated that the sales of medium and heavy commercial (M&HC) goods carriers will increase at a CAGR of more than 10.5 per cent during 2011-12 to 2014-15. In another RNCOS research report, "Indian Automobile Sector Analysis", the production of passenger vehicle is forecast to grow at a CAGR of around 11 per cent from 2009-10 to 2012-13, and domestic volume sales at a CAGR growth of around 12 per cent.

Automobiles Sector - Overview The automobiles sector is divided into four segments two-wheelers (mopeds, scooters, motorcycles, electric two-wheelers), passenger vehicles (passenger cars, utility vehicles, multi-

purpose vehicles), commercial vehicles (light and medium-heavy vehicles), and three wheelers (passenger carriers and good carriers). The industry is one of the key drivers of economic growth of the nation. Since the delicensing of the sector in 1991 and the subsequent opening up of 100 percent FDI through automatic route, Indian automobile sector has come a long way. Today, almost every global auto major has set up facilities in the country. The world standings for the Indian automobile sector, as per the Confederation of Indian Industry, are as follows:

Largest three-wheeler market Second largest two-wheeler market Tenth largest passenger car market Fourth largest tractor market Fifth largest commercial vehicle market Fifth largest bus and truck segment

The auto sector reported a robust growth rate of 26 percent in the last two years (2010-2012). The BSE AUTO Index outperformed the benchmark Nifty by 79%, 12% and 19% in FY10, FY11 and FY12, respectively. However, the sector has shown a sluggish growth of 12 percent in 2012. The trend is likely to stay with a 10 percent growth outlined for 2013 citing high ownership costs (fuel costs, cost of registration, excise duty, road tax) and slow rural income growth. Solid but cautious growth is expected over the next few years. However, from a long-term perspective, rising incomes, improved affordability and untapped markets present promising opportunities for automobile manufactures in India. According to Macquaire equities research, sale of passenger vehicles is expected to double in the next four years and growth anticipated is higher than the 16 percent achieved in the past 10 years. Two-wheeler vehicle segment is expected to show slow growth of 10 percent CAGR over the period of 2012-2016, suggests the report. The Government recognizes the impact of the sector on the nations economy, and consequently, the Automotive Mission Plan 2016 launched by it seeks to grow the industry to a size of US $145bn by 2016 and make it contribute 10 percent to the nations GDP.

Factors That Will Drive Growth In The Sector

Rising incomes among Indian population will lead to increased affordability, increasing domestic demand for vehicles, especially in the small car segment.

Fuel economy and demand for greater fuel efficiency is a major factor that affects consumer purchase decision that will bring leading companies across two-wheeler and four-wheeler segment to focus on delivering performance-oriented products. Product innovation and market segmentation will channelize growth. Vehicles based on alternative fuels will be an area of interest for both consumers and auto makers. Focus on establishing India as auto-manufacturing hub is reigning in policy support in form of Governments technology modernisation fund. Industry will seek to augment sales by tapping into rural markets, youth, women and luxury segments.

Upcoming Trends
India is emerging as a strong automotive R&D hub with foreign players like Hyundai, Suzuki, General Motors setting up base in India. This move is further enhanced by Governments support towards setting up centres for development and innovation. Tata Nanos successful entry in the Indian market has steamed up the opportunities of growth available in alternative segments like electric cars, vehicles run on natural gas, etc.

Job Opportunities In Automobile Sector


According to the Confederation of Indian Industry, auto sector currently employs 787, 7702 people, 58 percent of who are in the passenger car segment. However, there is an increasing demand for skilled professionals in the domain of effective service delivery, spares management and support functions. ITIs and Polytechnics provide 530,000 graduates every year, but there is an urgent need for updating courses to keep up with changing trends in technology, manufacturing, and processes.

COMPETITOR ANALYSIS OF BOTH INDUSTRIES


The Indian information technology industry
The world has made immense strides in recent years with economic progress linked to the explosion in Information Technology (IT), accompanied by globalization led shrinking of national boundaries. Physical borders no longer define markets and organizations have the freedom to source products from the lowest cost locations. The Indian information technology

industry has not only been among the fastest growing industries globally, it has played a key role in transforming India from a largely inward looking economy to an emerging knowledge power that is being recognized as one of the most dynamic and entrepreneurial in the world. As Dahlman and Utz (2005) note, the success of the IT industry on the whole influenced competitiveness in other sectors as well by building confidence in Indian industry, enhancing the country's brand equity in the world, and offering entrepreneurial opportunities on a global scale'. The success of this industry has had profound effects on the political decisions, economic growth, social outlook and norms, and technological structure of this nation apart from being a prime mover of the Indian economy. This industry's contribution to the country's GDP has increased from 1.4 per cent in 2001 to about 7 per cent in 2009 and is expected to contribute nearly 20 per cent of incremental GDP growth between 2001 and 2009. The industry, which employed 0.8 million people in 2001, is expected to employ over 2 million people directly and create direct employment opportunities for at least an additional 2 million people by 2008 (Nasscom, 2002). This study shall present an analysis of the industry landscape of Indian Information Technology industry using analysis frameworks and tools such as PESTEL Analysis & SWOT Analysis.

PESTEL Analysis of Indian Software Industry


The business environment of an industry consists of all the external influences that affect its decisions and performance. Given the vast number and range of external influences, Political, Economic, Social, and Technological or PEST analysis framework provides a system for organizing information regarding external forces that affect the business. Secondly, an

Political: 1. Political Stability - Indian political system is very stable. India is the world's largest democratic nation, where elections are held democratically every five years. All political parties strongly believe in democracy - Positive 2. Relations with major powers - Indian government maintains good relations with all major powers and power blocs of the world. This leads to Indian firms not getting excluded in the tendering process - Positive 3. Government Policy - IT The Indian government as well as the government owned companies have decided to award more IT Projects to Indian IT companies - positive 4. Possibilities of war - Skirmishes with Pakistan could lead to major terrorist attacks or a full-fledged war Negative.

Economical: 1. Global IT Spending - The recent financial crisis and ensuing recession has led to major firms and banks cut down their IT Spending affecting Industry growth - Negative

2. Domestic IT Spending - Indian domestic market grew by 20 % to reach USD 20 billion in 2008 and is poised to maintain this growth rate owing to most government and governmental agencies going in for digitization - Positive 3. Currency Fluctuation - As most of software services are exported, strengthening of Indian Rupee vis--vis major currencies such as US Dollar, UK Pound leads to a decrease in profits and vice-versa for companies - Negative 4. Real Estate Prices - There has been a sharp decline in real estate prices, resulting in reduction in Rental expenditure - Positive 5. Attrition - Owing to recession, layoffs and job-cuts have resulted in low attrition rate Positive 6. Labour Cost - Indian Programming costs are among the lowest in the world, giving a cost advantage - Postive. 7. Government Support - Indian government sees software exports as a major foreign exchange earner, hence provides plenty of support - Positive.

Social: 1. Language Spoken - Indian software staff is comfortable in English language and in doing business in English. 2. Education - large number of technical institutes, colleges and universities all over the country provide IT education. 3. Working age - easy availability of young computer literate staff.

Technological:

Telephony - Positive

1. India has among the world's lowest telephone call rates. 2. Telephone subscribers base expected to cross 500 million by end 2009. 3. Enterprise telephone services such as 3G, Wi-max, VPN poised to grow

Internet backbone - India is well connected with multiple undersea optical cables positive New IT Technologies - Positive

Technologies such as SOA, Web 2.0, grid computing, High definition content are presenting new opportunities and growth potential.

SWOT Analysis
Strengths: 1. Leadership in sophiscated solutions that enable clients to optimize the efficiency of their business. 2. Proven Global Delivery Model'. 3. Commitment to superior quality and process execution. 4. Strong Brand and Long-standing client relationships. 5. Ability to scale Innovation and leadership.

Weaknesses: 1. Excessive dependence on United States for revenues - 67% of revenues from USA. 2. Too much dependence on BFSI (Banking Financial Services and Insurance) sector. 3. Low R&D spends as compared to global peers. 4. Low expertise in high-end services such as Consultancy and KPO.

Opportunities: 1. Plenty of scope for Indian Software industry to tap Global IT spending of 1.7 trillion USD. 2. Indian domestic market set to grow by 20%. 3. Can expand into newer geographies such as - Latin America, Nordic nations, middle-east market, Japan, and western Europe. 4. Creating near shore offices and development centers in cost advantage countries such as Latin America and Eastern Europe.

Threat: 1. Global IT slowdown that may continue for some more years, will lead to lower IT spending. 2. Increased competition from foreign companies such as - IBM, HP.

3. Increased competition from low-wage countries such as - China. 4. US government is against outsourcing of IT contracts. 5. Shrinking margins owing to rising wage inflation, currency fluctuations affects revenue and hence margins. 6. Breakup of total Global IT Spending 7. Financial attractiveness of software locations 8. India IT Sector - Market Size 9. Contribution of India IT Industry to GDP 10. Number of employees in IT Sector (Direct Employment) 11. Market share of various Indian IT Firms 12. Sources of Revenue 13. Software Exports Revenue by Global Geography 14. R & D Spending of IT Majors 15. Established IT hubs

Auto Industries in India


Even a small change in the automobile industry drew my attention. In order to carry out my research I used the help of the PESTEL analytical tool and the SWOT analytical tool. Both primary research and secondary research were used to cover all the marketing strategies adopted by Automobile industry. De-licensing in 1991 put the Indian automobile industry on a new growth trajectory, which attracted foreign auto giants to set up their production facilities in the country to take advantage of various benefits it offers. Large middle class population, growing earning power and strong technological capability have been boosting automobile demand for past few years. Despite economic slowdown, the Indian automobile sector is expected to see high growth in coming years, especially in passenger cars segment. The passenger vehicle market, which constitutes around 80% of automobile sales, has immense growth potential as passenger car stock stood at around 11 per 1,000 people in 2008. Anticipating the future market potential, the production of passenger vehicle is forecasted to grow at a CAGR of around 11% from 2009-10 to 2012-13.

PESTEL Analysis

Political (P):

Due to heavy taxes imposed by the Indian government Automobile industry was forced to increase automobile prices resulting in the product positioning itself in the premium segment. Government was forcing high content of indigenization. Investments in infrastructure.

Economic (E):

India is a fast growing economy with an increasing disposable income. Due to the economic conditions the money was invested in installments resulting in the slow growth of the facility. FDI is less compared to that of China's.

Social (s):

Due to the heavy competition in the industry, the Indian market found it difficult to select the popular and stable entity in the market. Indian customers are value conscious and brand conscious.

Technological (T):

Since India is a developing country, Automobile industry was able to get maximum man force and technology with minimum amount of money leading to cost reductions of the company. Modern technology was brought from the other countries to maximize output.

Environmental (E):

Keeping in mind the issue of global warming, Automobile industry is to produce green environmental cars.

Legal (L):

Legal registration of the plant was a formal and a long procedure. Taxes and procedures in India very complex and time consuming for the European company. (Policies and processes).

SWOT Analysis
Strengths (S):

Excellent business relations with major financial institutions Highly qualified management Recognized as a customer-centric industry providing reliable and quality service Confidence in own product. industry offer a better value for money by giving an assured buy back, higher than the government.

Weakness (W):

Entirely family managed with no external professional enterprise. No mass car in their stable so have to cater only for select size of market. Lack of in house manpower to exploit upcoming market areas.

Opportunity (O):

Higher market penetration compared to market share in Europe. Launch of new models in the near future. Active social interaction with business clients; members of non-profit organizations like Round Table and Rotary; active players in the local golf club.

Threat (T):

Introduction of small yet powerful cars by competitors. Mass market cannot buy the higher end models.

INFORMATION TECHNOLOGY

When you choose Tata Consultancy Services (TCS) as your IT services, consulting and business solutions partner, you will discover what so many global enterprises have already discovered the power of certainty. We are a leader in the global marketplace and among the top 10 technology firms in the world. Our continued rapid growth is a testament to the certainty our clients experience every day. Building on more than 40 years of experience, we add real value to global organizations through

domain expertise plus solutions with proven success in the field and world-class service. Its how we keep you moving forward.

Corporate Facts
Who We Are: Tata Consultancy Services is an IT services, business solutions and outsourcing organization that delivers real results to global businesses, ensuring a level of certainty that no other firm can match. What We Offer: TCS offers a consulting-led integrated portfolio of IT and IT-enabled services delivered through its unique Global Network Delivery Model (GNDM), recognized as the benchmark of excellence in software development. Lineage: TCS is part of the Tata group, one of Indias largest industrial conglomerates and most respected brands. History: TCS was established in 1968 as a division of Tata Sons Limited. TCS Ltd. got incorporated as a separate entity on January 19, 1995. Mission: To help customers achieve their business objectives by providing innovative, best-inclass consulting, IT solutions and services. To make it a joy for all stakeholders to work with us. Values: Leading change, Integrity, Respect for the individual, Excellence, Learning and sharing. Workforce: TCS has over 276,000 of the worlds best-trained IT consultants in 44 countries.

Full Services Portfolio: Application Development and Maintenance, Business Intelligence, Enterprise Solutions, Assurance Services, Engineering and Industrial Services, IT Infrastructure Services, Business Process Outsourcing, Consulting and Asset Leveraged Solutions. Newer services include Mobility, Connected Marketing, Social Computing, Big Data and Cloud.

Industries Serviced: Banking, Financial Services and Insurance, Retail and Consumer Packaged Goods, Telecom, Media and Information Services, High Tech, Manufacturing, Life Sciences and Healthcare, Energy, Resources and Utilities, and Travel, Transportation and Hospitality.

Financial Information: Revenue of $11.6 billion; up 13.7% over prior year; operating margin of 27% and net income at $2.6B; up 15.6% (fiscal year ending March 31, 2013). For detailed financial information quarterly statements, annual reports and operating metrics.

Stock Symbols

NSE (National Stock Exchange of India): TCS BSE (Bombay Stock Exchange of India): 532540

Board of Directors

N Chandrasekaran, Chief Executive Officer and Managing Director Rajesh Gopinathan, Chief Financial Officer and Vice President

Infosys is a global leader in business consulting and technology solutions. As a proven partner focused on building tomorrows enterprise, Infosys enables clients in more than 30 countries to outperform the competition and stay ahead of the innovation curve. We create value for our clients by helping them surmount current challenges and see into the future of their business. Our experience gives our clients a distinct advantage. In addition to transforming their business, we can efficiently manage their operations as well. Our ability to execute on our ideas and deploy the most efficient delivery models are at the foundation of our three decades of success. A standout example is our Global Agile Delivery - a powerful blend of distributed delivery and Agile software development methods for efficient IT development. We deliver business value in global scalability, process efficiency and cost optimization for our clients. Our expertise spans industries. From helping build lighter and stronger passenger jets and creating more fuel efficient smart cars, to enabling banks to provide financial inclusion to the most remote corners of the globe, Infosys delivers powerful innovations. And in doing so, we change the way the world works and lives. Ranked in the top tier of Forbes 100 most innovative companies, Infosys provides enterprises with strategic insights on what lies ahead. Our focus on 7 core mega-trends (link to page on website where possible) provides a framework to uncover opportunities for innovation-led

growth. It guides us as we help organizations realize the promise and potential of the emerging digital consumer, smarter organizations, and pervasive computing. We help enterprises transform and thrive in a changing world through strategic consulting and the co-creation of breakthrough solutions. Infosys delivers business results by linking enterprise strategy to execution, resulting in powerful outcomes that help clients realize new efficiencies and revenue opportunities. Our integrated services are strategically bundled to deliver more value to clients and support the needs of enterprises to embrace the power of mobility, sustainability, big data and cloud computing. Since its foundation, Infosys has focused on bringing to life great ideas for enterprise solutions. And yet, its more than just innovation that has won us the confidence of our stakeholders. At Infosys, we adhere to the highest ethical standards in our relationship with our clients, our employees, and our shareholders. We believe our responsibilities also extend beyond the boundaries of business. Thats why we established the Infosys Foundation to provide assistance to some of the most socially and economically depressed sectors of the communities in which we work. An entrepreneurial adventure that began with seven engineers and $250, Infosys is now a publicly traded company driven by 150,000+ relentless innovators and annual revenues of more than $7B. At Infosys, we are unafraid to challenge the status quo. Delivering innovative business solutions that make our clients more competitive. Reinventing business models to exploit emerging opportunities in the industries we serve. And providing answers to real-world problems that improve the lives of the worlds people.

Fact File
Infosys Limited (NYSE: INFY) delivers IT-enabled business solutions to enable Global 2000 companies to build their enterprises of tomorrow. Our solutions focus on providing strategic differentiation and operational superiority to clients. We leverage our domain and business expertise along with a complete range of services. With Infosys, clients are assured of a transparent business partner, world-class processes, speed of execution and the power to stretch their IT budget by leveraging the Global Delivery Model that Infosys pioneered. Infosys has a global footprint with sales offices in 30 countries and development centers in India, US, China, Australia, UK, Canada, Japan and many other countries. Infosys has over 156,688 employees of 100 nationalities.

Board of Directors
Chairman Emeritus Narayana N.R. Murthy

Chairman of the Board Executive Co-Chairman

K.V. Kamath S. Gopalakrishnan

Chief Executive Officer and Managing Director

S.D. Shibulal

Financial Summary (Q4 FY 13)


IFRS-INR Total Income: Rs. 10,454 crore

Net profit after taxes: Earnings per share (Rs. 5):

Rs. 2,394 crore Rs. 41.89 (basic)

Total assets:

Rs. 46,351 crore

Cash and cash equivalents:

Rs. 23,958 crore

Wipro Infotech is a leading manufacturer of computer hardware and provider of IT services in India and the Middle East region. Part of Wipro Ltd, the $6.98 billion conglomerate and global leader in technology enabled solutions, the company leverages on the parent's philosophy of 'Applying Thought' to enable business results by being a transformation catalyst. Backed by our strong quality processes and rich experience managing global clients across various business verticals, we align IT strategies to your business goals. From simple changes in process to innovative solutions, we help our customers harness the power of IT to achieve profitable growth, market leadership, customer delight and sustainability. Along with our best of breed technology partners, Wipro Infotech also helps you with your hardware and IT infrastructure needs. Our vast IT services portfolio includes consulting, systems integration, application development and maintenance, technology infrastructure services, package implementation and R&D services among others. Wipro Infotech maintains offices across India, and has operations in Middle East. We also have a joint venture with DAR Al Riyadh Group in Saudi Arabia.

Board of Directors
Chairman: Azim H. Premji Chairman Executive Directors: T K Kurien - CEO, IT Business & Executive Director Suresh C Senapaty - Executive Director & Chief Finance Officer

AUTOMOBILE INDUSTRY

Tata Motors Limited is India's largest automobile company, with consolidated revenues of INR 1,65,654 crores (USD 32.5 billion) in 2011-12. It is the leader in commercial vehicles in each segment, and among the top in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. It is also the world's fourth largest truck and bus manufacturer. The Tata Motors Group's over 55,000 employees are guided by the mission "to be passionate in anticipating and providing the best vehicles and experiences that excite our customers globally." Established in 1945, Tata Motors' presence cuts across the length and breadth of India. Over 7.5 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The company's manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand), Sanand (Gujarat) and Dharwad (Karnataka). Following a strategic alliance with Fiat in 2005, it has set up an industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat powertrains. The company's dealership, sales, services and spare parts network comprises over 3,500 touch points. Tata Motors, also listed in the New York Stock Exchange (September 2004), has emerged as an international automobile company. Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand, Spain, South Africa and Indonesia. Among them is Jaguar Land Rover, acquired in 2008. In 2004, it acquired the Daewoo Commercial Vehicles Company, South Korea's second largest truck maker. The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market, while also exporting these products to several international markets. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer, and subsequently the remaining stake in 2009. Hispano's presence is being expanded in other markets. In 2006, Tata Motors formed a 51:49 joint venture with the Brazil-based, Marcopolo, a global leader in body-building for buses and coaches to manufacture fully-built buses and coaches for India - the plant is located in Dharwad. In 2006, Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the company's pickup vehicles in Thailand, and entered the market in 2008. Tata Motors (SA) (Proprietary) Ltd., Tata Motors' joint venture with Tata Africa Holding (Pty) Ltd. set up in 2011, has an assembly plant in Rosslyn, north of Pretoria. The plant can assemble, semi knocked

down (SKD) kits, light, medium and heavy commercial vehicles ranging from 4 tonnes to 50 tonnes. Tata Motors is also expanding its international footprint, established through exports since 1961. The company's commercial and passenger vehicles are already being marketed in several countries in Europe, Africa, the Middle East, South East Asia, South Asia, South America, CIS and Russia. It has franchisee/joint venture assembly operations in Bangladesh, Ukraine, and Senegal. The foundation of the company's growth over the last 66 years is a deep understanding of economic stimuli and customer needs, and the ability to translate them into customer-desired offerings through leading edge R&D. With over 4,500 engineers, scientists and technicians the company's Engineering Research Centre, established in 1966, has enabled pioneering technologies and products. The company today has R&D centres in Pune, Jamshedpur, Lucknow, Dharwad in India, and in South Korea, Spain, and the UK. It was Tata Motors, which launched the first indigenously developed Light Commercial Vehicle in 1986. In 2005, Tata Motors created a new segment by launching the Tata Ace, India's first indigenously developed mini-truck. In 2009, the company launched its globally benchmarked Prima range of trucks and in 2012 the Ultra range of international standard light commercial vehicles. In their power, speed, carrying capacity, operating economy and trims, they will introduce new benchmarks in India and match the best in the world in performance at a lower life-cycle cost. Tata Motors also introduced India's first Sports Utility Vehicle in 1991 and, in 1998, the Tata Indica, India's first fully indigenous passenger car. In January 2008, Tata Motors unveiled its People's Car, the Tata Nano. The Tata Nano has been subsequently launched, as planned, in India in March 2009, and subsequently in 2011 in Nepal and Sri Lanka. A development, which signifies a first for the global automobile industry, the Nano brings the joy of a car within the reach of thousands of families. Tata Motors is equally focussed on environment-friendly technologies in emissions and alternative fuels. It has developed electric and hybrid vehicles both for personal and public transportation. It has also been implementing several environment-friendly technologies in manufacturing processes, significantly enhancing resource conservation. Through its subsidiaries, the company is engaged in engineering and automotive solutions, automotive vehicle components manufacturing and supply chain activities, vehicle financing, and machine tools and factory automation solutions. Tata Motors is committed to improving the quality of life of communities by working on four thrust areas - employability, education, health and environment. The activities touch the lives of more than a million citizens. The company's support on education and employability is focused on youth and women. They range from schools to technical education institutes to actual facilitation of income generation. In health, the company's intervention is in both preventive and curative health care. The goal of environment protection is achieved through tree plantation,

conserving water and creating new water bodies and, last but not the least, by introducing appropriate technologies in vehicles and operations for constantly enhancing environment care. With the foundation of its rich heritage, Tata Motors today is etching a refulgent future.

Board of Directors
Mr. Cyrus P Mistry - Chairman Mr. Ravi Kant - vice-Chairman

The Bajaj Group is amongst the top 10 business houses in India. Its footprint stretches over a wide range of industries, spanning automobiles (two-wheelers and three-wheelers), home appliances, lighting, iron and steel, insurance, travel and finance. The group's flagship company, Bajaj Auto, is ranked as the world's fourth largest two- and three- wheeler manufacturer and the Bajaj brand is well-known across several countries in Latin America, Africa, Middle East, South and South East Asia. Founded in 1926, at the height of India's movement for independence from the British, the group has an illustrious history. The integrity, dedication, resourcefulness and determination to succeed which are characteristic of the group today, are often traced back to its birth during those days of relentless devotion to a common cause. Jamnalal Bajaj, founder of the group, was a close confidant and disciple of Mahatma Gandhi. In fact, Gandhiji had adopted him as his son. This close relationship and his deep involvement in the independence movement did not leave Jamnalal Bajaj with much time to spend on his newly launched business venture. Bajaj Auto is the world's third-largest manufacturer of motorcycles and the second-largest in India. The Forbes Global 2000 list for the year 2005 ranked Bajaj Auto at 1,946 It features at 1639 in Forbes 2011 list. The company has changed its image from a scooter manufacturer to a two-wheeler manufacturer. Its product range encompasses scooterettes, scooters and motorcycles. Its growth has come in the last four years after successful introduction of models in the motorcycle segment.

The company is headed by Rahul Bajaj who is worth around US$3.4 billion Bajaj Auto came into existence on 29 November 1945 as M/s Bachraj Trading Corporation Private Limited. It started off by selling imported two- and three-wheelers in India. In 1959, it obtained a licence from the government of India to manufacture two- and three-wheelers and it went public in 1960. In 1970, it rolled out its 100,000th vehicle. In 1977, it sold 100,000 vehicles in a financial year. In 1985, it started producing at Waluj near Aurangabad. In 1986, it sold 500,000 vehicles in a financial year. In 1995, it rolled out its ten millionth vehicle and produced and sold one million vehicles in a year.

His son, Kamalnayan Bajaj, then 27, took over the reigns of business in 1942. He too was close to Gandhiji and it was only after Independence in 1947, that he was able to give his full attention to the business. Kamalnayan Bajaj not only consolidated the group, but also diversified into various manufacturing activities. The present Chairman of the group, Rahul Bajaj, took charge of the business in 1965. Under his leadership, the turnover of the Bajaj Auto the flagship company has gone up from INR.72 million to INR. 120 billion, its product portfolio has expanded and the brand has found a global market. He is one of Indias most distinguished business leaders and internationally respected for his business acumen and entrepreneurial spirit.

Board of Directors
Rahul Bajaj - Chairman Madhur Bajaj - Vice Chairman Rajiv Bajaj - Managing Director

Maruti Suzuki India Limited (MSIL, formerly known as Maruti Udyog Limited) is a subsidiary of Suzuki Motor Corporation, Japan. Maruti Suzuki has been the leader of the Indian car market for over two and a half decades. The company has two manufacturing facilities located at Gurgaon and Manesar, south of New Delhi, India. Both the facilities have a combined capability to produce over a 1.5 million (1,500,000) vehicles annually. The company plans to expand its manufacturing capacity to 1.75 million by 2013.

The Company offers 16 brands and over 150 variants ranging from people's car Maruti 800 to the latest Life Utility Vehicle, Ertiga. The portfolio includes Maruti 800, Alto 800, Alto K10, Astar, Estilo, WagonR, Ritz, Swift, Swift DZire, SX4, Omni, Eeco, Kizashi, Grand Vitara, Gypsy and Ertiga. In an environment friendly initiative, in August 2010 Maruti Suzuki introduced factory fitted CNG option on 5 models across vehicle segments. These include Eeco, Alto, Estilo, Wagon R and Sx4. With this Maruti Suzuki became the first company in India to introduce factory fitted CNG vehicles.

In terms of number of cars produced and sold, the Company is the largest subsidiary of Suzuki Motor Corporation. Cumulatively, the Company has produced over 10 million vehicles since the roll out of its first vehicle on 14th December, 1983.

Maruti Suzuki is the only Indian Company to have crossed the 10 million sales mark since its inception. In 2012-13, the company sold 1.17 million vehicles including 1.2 lakh units of exports.

The Company employs over 9400 people (as on 31st March, 2013). Maruti Suzuki's sales and service network is the largest among car manufacturers in India. The Company has been rated first in customer satisfaction in the JD Power survey for 13 consecutive years. Besides serving the Indian market, Maruti Suzuki also exports cars to several countries in Europe, Asia, Latin America, Africa and Oceania.

Maruti Suzuki's revenue over the years:


(Rs. in Million) Year 2007-08 2008-09 2009-10 Net Sales 1,78,603 2,03,583 2,89,585 Year 2010-11 2011-12 2012-13 Net Sales 3,58,490 3,47,059 4,26,125

The company is listed on Bombay Stock Exchange and National Stock Exchange.

Board of Directors
Mr. R. C. Bhargava - Chairman Mr. Kenichi Ayukawa - Managing Director and CEO

ANALYSIS

INFORMATION TECHNOLOGY

Tata Consultancy Services Ltd. - Quarterly Results Industry : Computers - Software Business Group LTP (Rs.) ISIN No :Tata Group :1473.8 (1.35%) [NSE] :INE467B01029 Face Value/M Lot P/E Ratio Market Cap :1.00/1 : 22.56 : 288455.23 Cr BSE Code :532540 NSE Code :TCS

Q1 --- 2012-13
Revenue: - INR Revenue of `148,687 Mn, growth of 12.1% QoQ and 37.7% YoY - USD Revenue of $2,728 Mn, growth of 3.0% QoQ and 13.1% YoY - Constant currency revenue growth of 4.0%, volume growth of 5.3% QoQ Profit: - Operating Income at ` 40,897 Mn, Operating Margin of 27.5% - Net Income at ` 32,805 Mn, Net Margin of 22.1% Demand: - 29 new clients added during the quarter; Active clients: 1032 - Continued upward movement across major revenue bands People: - Gross addition of 13,831 associates, closing headcount: 243,545

- Utilization at 81.3% (ex-trainees) and 72.3% (including trainees) - Employee retention continues to be best in industry; LTM Attrition (IT Services) at 10.9%

Q2 --- 2012-13
Revenue: - INR Revenue of `156,208 Mn, growth of 5.1% QoQ and 34.3% YoY - USD Revenue of $2,853 Mn, growth of 4.6% QoQ and 13.0% YoY - Constant currency revenue growth of 4.8%, volume growth of 4.9% QoQ Profit: - Operating Income at ` 41,789 Mn, Operating Margin of 26.8% - Net Income at ` 35,123 Mn, Net Margin of 22.5% Demand: - 41 new clients added during the quarter; Active clients: 1041 - Strong deal closures; 11 large deals signed across verticals People: - Gross addition of 18,654 associates, closing headcount: 254,076 - Utilization at 81.6% (ex-trainees) and 72.8% (including trainees) - Employee retention continues to be best in industry; LTM Attrition (IT Services) at 10.2%

Q3 --- 2012-13
Revenue: - INR Revenue of `160,699 Mn, growth of 2.9% QoQ and 21.7% YoY - USD Revenue of $2,948 Mn, growth of 3.3% QoQ and 14.0% YoY - Volume growth of 1.25% QoQ; Constant currency realization up 1.3% QoQ

Profit: - Operating Income at ` 43,809 Mn, EBIT Margin of 27.3% up 51 bps QoQ - Net Income at ` 35,518 Mn, Net Margin of 22.1% Demand: - 31 new clients added during the quarter; Active clients: 1051 - Strong client additions in the $20 Mn plus category and above - 7 large deals signed across verticals People: - Gross addition of 17,145 associates, closing headcount: 2,63,637 - Utilization at 81.7% (ex-trainees) and 72.1% (including trainees) - LTM Attrition (IT Services) at 9.8%

Q4 --- 2012-13
Revenue: - INR Revenue of `164,301 Mn, growth of 2.2% QoQ and 23.9% YoY - USD Revenue of $3,040 Mn, growth of 3.1% QoQ and 14.8% YoY - Constant currency revenue growth of 4.0%, volume growth of 4.4% QoQ Profit:: - Operating Income at ` 43,584 Mn, Operating Margin of 26.5% - Net Income at ` 35,969 Mn, Net Margin of 21.9% Demand: - 52 new clients added during the quarter; Active clients: 1,065 - 11 large deals signed across verticals People: - Gross addition of 20,098 associates, closing headcount: 2,76,196 - Utilization at 82.0% (ex-trainees) and 72.2% (including trainees) - Employee retention continues to be best in industry; LTM Attrition (IT Services) at 9.4%

Comparison between SENSEX and TCS stock price for 1 year:

Stock Price of TCS 2012-2013:

Starting of March 2012 the price the stock price was 1544.85 and in the end of March 2013 it has raised to 1557.35. In Between 2012-2013 the high and low point of the stock was 1568.9 and 1538.5 respectively.

Infosys Ltd. - Quarterly Results Industry : Computers - Software Business Group LTP (Rs.) ISIN No :Not Applicable :2351.75 (0.82%) [NSE] :INE009A01021 Face Value/M Lot P/E Ratio Market Cap :5.00/1 : 14.81 : 135045.99 Cr BSE Code :500209 NSE Code :INFY

Q1 --- 2012-13 We are pleased to inform you that we have seen a sound performance this quarter in the face of an uncertain economic environment. Our consolidated revenues for the quarter ended June 30, 2012 stood at `9,616 crore, with a YoY growth of 28.5%. The net profit after tax was `2,289 crore for the quarter, and Earnings Per Share (EPS) was `40.06. In U.S. dollar terms, we had revenues of $1.763 bn, against the guidance of $1.771 bn to $1.789 bn. Our strategic direction of Building Tomorrows Enterprise continues to see good traction with our clients. Infosys and its subsidiaries added 51 new clients this quarter, taking the total client base to 711. We have had 4 transformation deal wins this quarter, and our million-dollar clients have gone up to 403. This quarter, our revenues from the key geographies that we operate in stood as follows: North America contributed 64.1%, Europe contributed 21.3%, and India and the Rest of the World contributed 2% and 12.5%, respectively.

Q2 --- 2012-13 I am pleased to inform you that we are making excellent progress on our journey of Infosys 3.0. Our consolidated revenues for the quarter ended September 30, 2012 stood at `9,858 crore, with a YoY growth of 21.7%. The net profit after tax was `2,369 crore for the quarter, and Earnings Per Share (EPS) was `41.46. In U.S. dollar terms, we had revenues of USD 1.797 billion. Our strategic direction of Building Tomorrow's Enterprise continues to see good traction with our clients. Infosys and its subsidiaries added 39 new clients this quarter, taking the total client base to 715. We have added 14 new clients in the financial services and Insurance.

This quarter, our revenues from the key geographies in which we operate stood as follows: North America contributed 63.9%, Europe contributed 21.9%, and India and the Rest of the World contributed 1.6% and 12.6%, respectively.

Q3 --- 2012-13 I am pleased to inform you that we have performed well in Q3 FY13. Our consolidated revenues for the quarter ended December 31, 2012 stood at `10,424 crore, with a YoY growth of 12.1%. This quarter, we completed the acquisition of Lodestone Holding AG, a leading management consultancy based in Switzerland. Our revenue growth in dollar terms for the quarter was 6.3% including Lodestone and 4.2% excluding Lodestone. The net profit after tax was unchanged at `2,369 crore for the quarter, and Earnings Per Share (EPS) was `41.47. In U.S. dollar terms, we had revenues of USD $1.911 bn. Our strategic direction of Building Tomorrows Enterprise continues to see good traction with our clients. Infosys and its subsidiaries added 89 new clients this quarter, taking the total client base to 776. Our growth this quarter has come largely from our non-top-10 clients and has been broad-based. Our million-dollar clients have gone up to 419. This quarter, our revenues from the key geographies that we operate in stood as follows: North America contributed 61%, Europe contributed 24% and India and the Rest of the World contributed 2.2% and 12.8% respectively.

Q4 --- 2012-13 Q4 revenues grew by 0.3% sequentially; FY13 revenues grew by 19.6% Financial Highlights Consolidated results under International Financial Reporting Standards (IFRS) for the quarter ended March 31, 2013 Revenues were `10,454 crore for the quarter ended March 31, 2013; QoQ growth was 0.3% YoY growth was 18.1% Net profit was `2,394 crore for the quarter ended March 31, 2013; QoQ growth was 1.1% YoY growth was 3.4% Earnings per share (EPS) was `41.89 for the quarter ended March 31, 2013; QoQ growth was 1.0% YoY growth was 3.3%

Comparison between SENSEX and INFOSYS stock price for 1 year:

Stock Price of INFOSYS 2012-2013:

Starting of March 2012 the price the stock price was 2842.00 and in the end of March 2013 it has raised to 2854.3. In Between 2012-2013 the high and low point of the stock was 2868.00 and 2833.05 respectively.

Wipro Ltd. - Quarterly Results Industry BSE Code NSE Code : Computers - Software :507685 :WIPRO Business Group LTP (Rs.) ISIN No :Wipro Group :344.0 (-0.7%) [NSE] :INE075A01022 Face Value/M Lot P/E Ratio Market Cap :2.00/1 : 15.00 : 84727.47 Cr

Q1 --- 2012-13 Highlights of the Results: Total Revenues were `106.53 billion ($1.92 billion1), an increase of 24% YoY. Net Income was `15.80 billion ($284 million1), an increase of 18% YoY. Non-GAAP Adjusted Net Income was `15.74 billion ($283 million1), an increase of 19% YoY. Non-GAAP constant currency IT Services Revenue in dollar terms was 1,540 million, within our guidance range of $1,520 million to $1,550 million. IT Services Revenue in dollar terms was impacted by $25 million of cross urrency impact and was $1,515 million, a YoY increase of 8%. IT Services Revenues in Rupee terms was `83.14 billion ($1,496 million1), an increase of 30% YoY. IT Services Earnings Before Interest and Tax (EBIT) was `17.44 billion ($314 million1), an increase of 24% YoY. Operating Income to Revenue for IT Services was 21% for the quarter.

Q2 --- 2012-13 Highlights of the Results: Total Revenues were `106.57 billion ($2.01 billion1), an increase of 17% YoY. Net Income was `16.11 billion ($304 million1), an increase of 24% YoY. Non-GAAP Adjusted Net Income was `15.98 billion ($302 million1), an increase of 22% YoY. IT Services Revenue was $1,541 million, a sequential increase of 1.7% and YoY increase of 4.6%. Non-GAAP constant currency IT Services Revenue in dollar terms was $1,535 million, within our guidance range of $1,520 million to $1,550 million. IT Services Revenues in Rupee terms was `83.73 billion ($1,582 million1), an increase of 23% YoY.

IT Services Earnings Before Interest and Tax (EBIT) was `17.31 billion ($327 million1), an increase of 27% YoY. Operating Income to Revenue for IT Services was 20.7% for the quarter.

Q3 --- 2012-13 Highlights of the Results: Total Revenues were `110.25 billion ($2.01 billion1), an increase of 10% YoY. Net Income was `17.16 billion ($313 million1), an increase of 18% YoY. Non-GAAP Adjusted Net Income was `17.09 billion ($312 million1), an increase of 17% YoY. IT Services Revenue was $1,577 million, a sequential increase of 2.4% and YoY increase of 4.8%. Non-GAAP constant currency IT Services Revenue in dollar terms was $1,571 million, within our guidance range of $1,560 million to $1,590 million. IT Services Revenues in Rupee terms was `86.02 billion ($1,568 million1), an increase of 13% YoY. IT Services Earnings Before Interest and Tax (EBIT) was `17.92 billion ($327 million1), an increase of 13% YoY. Operating Income to Revenue for IT Services was 20.8% for the quarter, up 0.1% sequentially. Wipro declared an interim dividend of `2 ($0.041) per share /ADS.

Q4 --- 2012-13 Highlights of the Results: The Scheme of Arrangement for the demerger of the Diversified Business of Wipro, including the Consumer Care and Lighting segment, is effective from March 31, 2013. Our financial statements show the performance of the Diversified Business as discontinued operations. Total Revenues were `110.26 billion ($2.02 billion1), an increase of 12% YoY. Revenues for continuing operations were `96.14 billion ($1.76 billion1), an increase of 13% YoY. Revenues for discontinued operations were `14.12 billion ($259 million1), an increase of 4% YoY. Total Net Income was `17.29 billion ($317 million1), an increase of 17% YoY. Net Income for continuing operations was `15.76 billion ($289 million1), an increase of 13% YoY. Net Income for discontinued operations was `1.53 billion ($28 million1), an increase of 88% YoY.

Total Non-GAAP Adjusted Net Income was `17.22 billion ($316 million1), an increase of 16% YoY. Non-GAAP Adjusted Net Income for continuing operations was `15.69 billion ($288 million1), an increase of 12% YoY. Non-GAAP Adjusted Net Income for discontinued operations was `1.53 billion ($28 million1), an increase of 88% YoY. Non-GAAP constant currency IT Services Revenue in dollar terms was $1,598.6 million, within our guidance range of $1,585 million to $1,625 million. IT Services Revenue was $1,585.1 million, a sequential increase of 0.5% and YoY increase of 3.2%. IT Services Revenues in Rupee terms was `85.54 billion ($1,569 million1), an increase of 13% YoY. IT Services Earnings Before Interest and Tax (EBIT) was `17.27 billion ($317 million1), an increase of 10% YoY. Operating Income to Revenue for IT Services was 20.2% for the quarter. Wipro declares a final dividend of `5 ($0.091) per share/ADS, taking the total dividend declared during the year to `7 ($0.131) per share/ADS.

Comparison between SENSEX and WIPRO stock price for 1 year:

Stock Price of WIPRO 2012-2013:

Starting of March 2012 the price the stock price was 340.00 and in the end of March 2013 it has declined to 337.00. In Between 2012-2013 the high and low point of the stock was 342.9 and 332.00 respectively.

Comparison between all the companys stock prices:

AUTOMOBILE INDUSTRY

Tata Motors Ltd. - Quarterly Results Industry BSE Code NSE Code : Auto - LCVs/HCVs :500570 :TATAMOTORS Business Group LTP (Rs.) ISIN No :Tata Group :303.35 (-0.09%) [NSE] :INE155A01022 Face Value/M Lot P/E Ratio Market Cap :2.00/1 : 77.91 : 96772.16 Cr

Q1 --- 2012-13 Tata Motors standalone revenues (net of excise) were for the quarter ended June 30, 2012 of Rs.10,586 crores as compared to Rs.11,624 crores in the corresponding period last year. Weak macroeconomic parameters, excise duty increases and poor availability of freight, resulted in pressure on volumes in the MHCV segment. Further, competitive pressures on pricing in certain commercial and passenger vehicle segments and lower volumes, impacted the operating margins. Operating margin was 7.3% for the quarter ended June 30, 2012, as compared to 8.8% for the corresponding period last year. The Operating Profit (EBITDA) stood at Rs.774 crores in the quarter ended June 30, 2012, as compared to Rs.1,020 crores in the corresponding period last year. The PBT for the quarter ended June 30, 2012 is Rs.237 crores as compared to Rs.466 crores in the corresponding period last year and the PAT for the quarter is Rs.205 crores as compared to Rs.401 crores in the corresponding period last year. The PBT and PAT for the quarter ended June 30, 2012, were adversely impacted by exchange loss (net) including on revaluation of foreign currency borrowings, deposits and loans arising from the depreciation of Indian Rupee (INR), of Rs.161 crores (Gain of Rs.2 crores in corresponding period last year). Tata Motors' sales (including exports) of commercial and passenger vehicles for the quarter ended June 30, 2012, stood at 190,483 units, representing a decline of 3.6%, as compared to the corresponding period last year. In the domestic market, the Company's Commercial vehicles sales for the quarter ended June 30, 2012, stood at 114,710 units, a growth of 1.3% over the corresponding period last year. Growth was driven by small commercial vehicles and was supported by improved production through our facilities in Pantnagar and Dharwad. The Company's market share in commercial vehicles was 56.2% for the quarter ended June 30, 2012.

In the domestic market, the Company's Passenger vehicles, including Fiat and Jaguar and Land Rover vehicles distributed in India, stood at 62,619 units for the quarter ended June 30, 2012, a decrease of 9.9% over the corresponding period last year. The Company continues focus on marketing initiatives and network actions and the sales & service process. The market share in Passenger vehicles for quarter ended June 30, 2012, stood at 9.8%.

Q2 --- 2012-13 The sales (including exports) of commercial and passenger vehicles for the quarter ended September 30, 2012, stood at 2,23,655 units, representing a growth of 5.8%, as compared to the corresponding quarter last year. The revenues (net of excise) for the quarter ended September 30, 2012 stood at Rs.12,481 crores, as compared to Rs.12,954 crores for the corresponding quarter last year. Weak macro-economic outlook and sluggish industrial demand coupled with diesel price increases, have impacted M&HCV sales. Further, competitive pressures on pricing in certain segments and weak product mix, impacted the operating margins. The operating margin was 5.9% for the quarter ended September 30, 2012 as compared to 7.2% for the corresponding quarter last year. Profit before Tax and Profit after Tax for the quarter ended September 30, 2012 was Rs.1,024 crores and Rs 867 crores, respectively, against Rs.37 crores and Rs 102 crores, respectively, for the corresponding quarter last year.The Profit Before Tax for the quarter included dividend from Jaguar LandRover and other subsidiaries amounting to Rs 1,312 crores (Rs 29 crores in the corresponding period last year). The revenues (net of excise) for the Half Year ended September 30,2012, were Rs.23,068 crores as compared to Rs.24,578 crores in the corresponding period last year. Profit before Tax and Profit after Tax for Half Year ended September 30, 2012 were Rs. 1,261 crores and Rs. 1,072 crores respectively, compared to Rs. 503 crores (both PBT and PAT) for the corresponding period last year. In the domestic market, the commercial vehicles sales for the quarter ended September 30, 2012 stood at 136,353 units, a growth of 4.8% over the corresponding period last year, driven by LCV segment, and the Company's overall market share in commercial vehicles improved sequentially and stood at 59.7% for the quarter. The passenger vehicles sales, stood at 72,603 units for the quarter ended September 30, 2012, an increase of 11.6% over the corresponding period last year and the overall market share in passenger vehicles, grew to 12.3% for the quarter, driven by the Compact and UV segments.

Q3 --- 2012-13 The sales (including exports) of commercial and passenger vehicles for the quarter ended December 31, 2012, stood at 2,05,291 units, a decline of 11.3% as compared to the orresponding period last year. Weak macro-economic environment and competitive pressures on pricing, continued to impact the operations during the quarter. The revenues (net of excise) for the quarter ended December 31, 2012, stood at Rs.10,630 crores, as compared to Rs.13,338 crores

for the corresponding quarter of the previous year. The operating margin was 2.2% for the quarter ended December 31, 2012, as compared to 6.7% for the corresponding quarter last year. Loss Before Tax and Loss After Tax for the quarter ended December 31, 2012 was Rs.601 crores and Rs.458 crores, respectively, against the Profit Before Tax and Profit After Tax of Rs.186 crores and Rs.174 crores, respectively, for the corresponding quarter last year. The revenues (net of excise) for the Nine months ended December 31, 2012, were Rs.33,698 crores as compared to Rs.37,916 crores in the corresponding period last year. The Operating margin for the Nine months ended December 31, 2012, stood at 5.2%. Profit Before Tax and Profit After Tax for Nine months ended December 31, 2012, was Rs.660 crores and Rs.614 crores, respectively, against Rs.689 crores and Rs.677 crores, respectively, for the corresponding period last year. The Profit Before Tax for the period included dividend from Jaguar Land Rover and other subsidiaries amounting to Rs.1,575 crores (Rs.105 crores in the corresponding period last year). In the domestic market, the commercial vehicles sales for the quarter ended December 31, 2012, stood at 1,38,963 units, driven by the LCV segment, and the Company's overall market share in commercial vehicles improved sequentially and stood at 62.6% for the quarter. The passenger vehicles sales, stood at 54,675 units for the quarter ended December 31, 2012, and the overall market share in passenger vehicles stood at 8.4% for the quarter and 10.1% for the period ended December 2012.

Comparison between SENSEX and TATA MOTORS stock price for 1 year:

Stock Price of TATA MOTORS 2012-2013:

Starting of March 2012 the price the stock price was 271.25 and in the end of March 2013 it has raised to 275.25. In Between 2012-2013 the high and low point of the stock was 277.3 and 266.5 respectively.

Bajaj Auto Ltd. - Quarterly Results Industry BSE Code NSE Code : Auto - 2 & 3 WheelersBusiness Group :532977 :BAJAJ-AUTO LTP (Rs.) ISIN No :Bajaj Group :1832.05 (1.41%) [NSE] :INE917I01010 Face Value/M Lot P/E Ratio Market Cap :10.00/1 : 17.42 : 53013.48 Cr

Two- and three-wheeler manufacturer Bajaj Auto reported a marginal increase of one per cent in net profit for 2012-13.

The net profit stood at Rs.3,044 crore from Rs.3,004 crore in the fiscal year 2012-13.

The company reported a three percent growth in turnover for the period under review at Rs.20,793 crore from Rs.20,137 crore in the first quarter of last fiscal.

The company's total sales in 2012-13 declined by three percent at 4,237,162 units from 4,349,560 the 2011-12.

"Company's strategy to build strong brands and offer differentiated products in the front-end, and focus on cost and productivity improvements at the back-end, has yielded the desired results. On a full year basis, operating EBITDA stood at Rs.3,990 crore as a percent to net sales and operating income," the company said in a statement.

Domestic motorcycle sales were down by four percent at 2,463,874 units from 2,566,757 units. However, exports were up two percent at 1,293,231 units from 1,267,648 units. Overall motorcycle sales in 2012-13 were marginally lower by two percent at 3,757,105 units from 3,834,405 units sold in 2011-12.

In terms of commercial vehicle segment sales, the company reported a decrease of seven percent at 480,057 units. Exports plunged by 19 percent at 253,926 units.

Comparison between SENSEX and BAJAJ AUTO stock price for 1 year:

Stock Price of BAJAJ AUTO 2012-2013:

Starting of March 2012 the price the stock price was 1806.7 and in the end of March 2013 it has declined to 1795.2. In Between 2012-2013 the high and low point of the stock was 1809.00 and 1777.00 respectively.

Maruti Suzuki India Ltd. - Quarterly Results Industry BSE Code NSE Code : Auto - Cars & Jeeps :532500 :MARUTI Business Group LTP (Rs.) ISIN No :MNC Associate :1708.7 (-1.12%) [NSE] :INE585B01010 Face Value/M Lot P/E Ratio Market Cap :5.00/1 : 21.58 : 51616.42 Cr

Comparison between SENSEX and MARUTI SUZUKI stock price for 1 year:

Stock Price of MARUTI SUZUKI 2012-2013:

Starting of March 2012 the price the stock price was 1300.00 and in the end of March 2013 it has declined to 1293.2. In Between 2012-2013 the high and low point of the stock was 1300.00 and 1266.00 respectively.

Comparison between all the companys stock prices:

IMPACT OF VOLATILITY i.e., RISE AND FALL IN STOCK PRICES OF THE COMPANIES:
When a company releases news about a new product line or management change, be it good or bad, Wall Street and investors are sure to react. If it's a positive reaction, the companys stock price will rise. If it's bad, the stock price goes down. Without question the most important factor that affects a company's value, and therefore its stock price, is its earnings. Earnings are the profit a company makes, and in the long run no company can survive without them. Public companies are required to report their earnings four times a year. If a company's earnings are better than expected, its stock price increases. But if a company's results are worse than expected, its stock price will fall as simple as that.

Mergers and Acquisitions Even if you've only recently developed an interest in investing and the stock market, you've no doubt seen or heard news accounts of one company buying another or two companies deciding to merge. Those mergers and acquisitions affect companies' stock prices too because they permit companies to move into new markets or to maintain dominance in their current market. Market share translates to dollars, which in turn affects stock price and therefore a company's bottom line. A few years ago when America Online announced it would buy Time Warner for $183 billion in stock, Time Warner's stock soared 40 points in a single day.

Organization Restructure Ask yourself if you'd buy stock in a company that was constantly downsizing. If you're smart, the answer to that question is no. Large,publicly traded companies seek to grow and gain market share, and they do it by consistently increasing earnings and revenue. How does a company increase earnings and revenue? Quality labor is a good place to start. Without quality management, no company can succeed over the long term; so when a CEO steps down, some might see this as being negative (stock prices fall), while others might accept the restructure as a much-needed change going forward (stock prices rise).

Analyst Upgrades and Downgrades Everyday senior analysts from various firms upgrade or downgrade securities. Sometimes the more well known analysts do it publicly to dramatic effect. News of a strong buy rating with a 12-month price target of $1,000 can potentially send a stock's price through the roof. Of course, the opposite is also true. Strong downgrades can send stock prices plummeting. In these instances, buyers and sellers should be cautious; such ratings are nothing more than one analyst's personal opinion. Ultimately, the real reason a stock goes up and down in price is the number of buyers and sellers, which relates back to the law of supply and demand.

STUDY AND RESEARCH METHODOLOGY


This study is done mainly under the IT and Automobile Industry trading in Secondary Markets, so this study cannot be generalized. To study the analysis of price movement of shares and company performance with respect to Information Technology and Automobile Industry. To study the various factors affecting the price movement of shares and company performance.

FINDINGS
TCS has the high EPS for the year 2012 -2013 while WIPRO recorded the lowest EPS for the year 2012 -2013. BAJAJ has the high EPS for the year 2012 -2013 while MARUTI SUZUKI recorded the lowest EPS for the year 2012 -2013.

From the industry analysis it is clear that the growth rate of IT and Automobile industry is increasing. Besides the factors used for analysis there are several other factors like abour strikes management, employee employer relationship which judge the performance of companies.

CONCLUSION
Investors are interested in predicting the future behaviour of stock market. The efficient market hypothesis is yet to be acclaimed in the age of IT and Globalization. The existence of market for securities is of advantage to both the issuers and investors. To investors it gives an opportunity to select an optimal investment strategy. This paper presents an explicit model for the role of price movement of shares with the annual performance of companies. Studying the fundamental factors which influence the market price and also the performance of the company is a part of any investor before going for investment. The investor should look at the price movements of the particular company over the years and should go for better portfolio.

RECOMMENDATIONS:
Besides looking at the company performance the investor should analyse the economy and the industry as a whole.

It is better to invest in companies with good market value, good performance in revenue and should consider the various factors affecting the performance before investing.

I would recommend Infosys as good for investment because as it has high quality of earnings and high compounded annual growth rate.

Even though the industry may perform well, several ratios like, financial ratios, growth ratios, sales etc.. should be properly analyzed with reference to that company and also with the industry.

As P/E ratio is directly related to market price per share and the Earnings per share while looking at the P/E ratio one should analyze the return and go for better portfolio.

A higher P/E ratio indicates that the stocks are extremely overvalued. If the firm does not earn a huge growth of earnings it will increase the amount paid by each investor to the share.

TOOLS OF DATA COLLECTION


There are two types of data collection method, primary and secondary data collections. But for this project I have used only secondary data collection method. Secondary data is collected from annual reports of the company, quarterly financial results and various other articles.

SOURCES OF DATA & BIBLIOGRAPHY:


Websites https://www.google.co.in/ http://www.wikipedia.org/ http://www.scribd.com/ http://www.ibef.org/ http://www.tcs.com/Pages/default.aspx http://www.infosys.com/pages/index.aspx http://www.wipro.com/india/ http://www.tatamotors.com/ http://www.bajajauto.com/ http://www.marutisuzuki.com/ http://www.bseindia.com/ http://www.nseindia.com/ http://www.kotaksecurities.com/home/index.html http://www.moneycontrol.com/ http://www.oxbridgewriters.com/

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