INDUSTRY PROFILE

Stock Market
A stock market or equity market is a public entity. Stock market is a loose network of economic transaction not a physical facility or discrete entity for the trading of company stock and derivatives at an agreed price. These are securities listed on stock as well as those only traded privately. The size of the world stock market was estimated at about $36.6 trillion at the beginning of October 2008.The total world derivatives market has been estimated at about $791 trillion face or nominal value, 11 times the size of the entire world economy. The value of the derivatives market, because it is stated in terms of notional values, cannot be directly compared to a stock or a fixed income security, which traditionally refers to an actual value. Moreover, the vast majority of derivatives 'cancel' each other out (i.e., a derivative 'bet' on an event occurring is offset by a comparable derivative 'bet' on the event not occurring). Many such relatively illiquid securities are valued as marked to model, rather than an actual market price. The stocks are listed and traded on stock exchanges which are entities of a corporation or mutual organization specialized in the business of bringing buyers and sellers of the organizations to a listing of stocks and securities together. Market Participants Market participants include individual retail investors, institutional investors such as mutual funds, banks, insurance companies and hedge funds, and also publicly traded corporations trading in their own shares. Some studies have suggested that institutional investors and corporations trading in their own shares generally receive higher risk-adjusted returns than retail investors. The rise of the institutional investor has brought with it some improvements in market operations. There has been a gradual tendency for "fixed" (and exorbitant) fees being reduced for all investors, partly from falling administration costs but also assisted by large institutions challenging brokers' oligopolistic approach to setting standardized fees.

The Bombay Stock Exchange

History

Established in 1875, the Bombay Stock Exchange is Asia's first stock exchange. In 12th century France the courtiers de change was concerned with managing and regulating the debts of agricultural communities on behalf of the banks. Because these men also traded with debts, they could be called the first brokers. A common misbelief is that in late 13th

century Bruges commodity traders gathered inside the house of a man called Van der Beurze, and in 1409 they became the "BrugseBeurse", institutionalizing what had been, until then, an informal meeting, but actually, the family Van der Beurze had a building in Antwerp where those gatherings occurred; the Van der Beurze had Antwerp, as most of the merchants of that period, as their primary place for trading. The idea quickly spread around Flanders and neighboring counties and "Beurzen" soon opened in Ghent and Rotterdam. In the middle of the 13th century, Venetian bankers began to trade in government securities. In 1351 the Venetian government outlawed spreading rumors intended to lower the price of government funds. Bankers in Pisa, Verona, Genoa and Florence also began trading in government securities during the 14th century. This was only possible because these were independent city states not ruled by a duke but a council of influential citizens. Italian companies
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were also the first to issue shares. Companies in England and the Low Countries followed in the 16th century. The Dutch East India Company (founded in 1602) was the first joint-stock company to get a fixed capital stock and as a result, continuous trade in company stock occurred on the Amsterdam Exchange. Soon thereafter, a lively trade in various derivatives, among which options and repos, emerged on the Amsterdam market. Dutch traders also pioneered short - a practice which was banned by the Dutch authorities as early as 1610. There are now stock markets in virtually every developed and most developing economies, with the world's largest markets being in the United States, United Kingdom, Japan, India, China, Canada, Germany (Frankfurt Stock Exchange), France, South Korea and the Netherlands. Function and purpose of stock market The main trading room of the Tokyo, where trading is currently completed through computers. The stock market is one of the most important sources for companies to raise money. This allows businesses to be publicly traded, or raise additional financial capital for expansion by selling shares of ownership of the company in a public market. The liquidity that an exchange affords the investors gives them the ability to quickly and easily sell securities. This is an attractive feature of investing in stocks, compared to other less liquid investments. Some companies actively increase liquidity by trading in their own shares. History has shown that the price of shares and other assets is an important part of the dynamics of economic activity, and can influence or be an indicator of social mood. An economy where the stock market is on the rise is considered to be an up-and-coming economy. In fact, the stock market is often considered the primary indicator of a country's economic strength and development. Rising share prices, for instance, tend to be associated with increased business investment and vice versa. Share prices also affect the wealth of households and their consumption. Therefore, central banks tend to keep an eye on the control and behavior of the stock market and, in general, on the smooth operation of financial system functions. Financial stability is the raison d'tre of central banks.

Exchanges also act as the clearinghouse for each transaction, meaning that they collect and deliver the shares, and guarantee payment to the seller of a security. This eliminates the risk to an individual buyer or seller that the counterparty could default on the transaction. The smooth functioning of all these activities facilitates economic growth in that lower costs and enterprise risks promote the production of goods and services as well as possibly employment. In this way the financial system is assumed to contribute to increased prosperity. Relation of the stock market to the modern financial system The financial system in most western countries has undergone a remarkable transformation. One feature of this development is disintermediation. A portion of the funds involved in saving and financing, flows directly to the financial markets instead of being routed via the traditional bank lending and deposit operations. The general public interest in investing in the stock market, either directly or through mutual funds, has been an important component of this process. Statistics show that in recent decades shares have made up an increasingly large proportion of households' financial assets in many countries. In the 1970s, in Sweden, deposit accounts and other very liquid assets with little risk made up almost 60 percent of households' financial wealth, compared to less than 20 percent in the 2000s. The major part of this adjustment is that financial portfolios have gone directly to shares but a good deal now takes the form of various kinds of institutional investment for groups of individuals, e.g., pension funds, mutual funds, hedge funds, insurance investment of premiums, etc. The trend towards forms of saving with a higher risk has been accentuated by new rules for most funds and insurance, permitting a higher proportion of shares to bonds. Similar tendencies are to be found in other industrialized countries. In all developed economic systems, such as the European Union, the United States, Japan and other developed nations, the trend has been the same: saving has moved away from traditional (government insured) bank deposits to more risky securities of one sort or another. Behavior of the stock market From experience it is known that investors may 'temporarily' move financial prices away from their long term aggregate price 'trends'. (Positive or up trends are referred to as bull markets; negative or down trends are referred to as bear markets). Over-reactions may occur so that
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excessive optimism (euphoria) may drive prices unduly high or excessive pessimism may drive prices unduly low. Economists continue to debate whether financial markets are 'generally' efficient. According to one interpretation of the efficient-market hypothesis (EMH), only changes in fundamental factors, such as the outlook for margins, profits or dividends, ought to affect share prices beyond the short term, where random 'noise' in the system may prevail. (But this largely theoretic academic viewpoint known as 'hard' EMH also predicts that little or no trading should take place, contrary to fact, since prices are already at or near equilibrium, having priced in all public knowledge.) The 'hard' efficient-market hypothesis is sorely tested and does not explain the cause of events such as the stock market crash in 1987, when the Dow Jones index plummeted 22.6 percent the largest-ever one-day fall in the United States. This event demonstrated that share prices can fall dramatically even though, to this day, it is impossible to fix a generally agreed upon definite cause: a thorough search failed to detect any 'reasonable' development that might have accounted for the crash. (But note that such events are predicted to occur strictly by chance, although very rarely.) It seems also to be the case more generally that many price movements (beyond that which are predicted to occur 'randomly') are not occasioned by new information; a study of the fifty largest one-day share price movements in the United States in the post-war period seems to confirm this. Another phenomenon also from psychology that works against an objective assessment is group thinking. As social animals, it is not easy to stick to an opinion that differs markedly from that of a majority of the group. An example with which one may be familiar is the reluctance to enter a restaurant that is empty; people generally prefer to have their opinion validated by those of others in the group.

COMPANY PROFILE
Introduction
An evolving, emerging & enterprising group with its roots in the financial services sector and today expanding into newer horizons with great passion. The vision of the group is to be leaders in businesses driven by customer satisfaction, commitment to excellence and passion for continued value creation for all stakeholders. This vision has helped us grow and build the trust of our customers and associates which is at the cornerstone of everything we do. Trust is also at the heart of our success and the driver for passion for our success. Work Philosophy Driven by passion, we continue to evolve and make the right product accessions and service innovations in our offerings. Over the years, our passion has seen us grow from strength to strength and expand rapidly, setting new benchmarks in the process. But to us, what really matters the most is winning the trust of our customers. Our Businesses 1) 2) 3) 4) Asset Management Real Estate Insurance Broking Global Wealth Advisory

Asset Management Ravi Investor has ventured in asset management business with his advisory services. The Advisory Services is the idea to provide customers with solutions that give them the freedom from active management of investments while having an assurance that we would be doing so in the best possible manner. Our conviction, matched by our passion and expertise, is all about ensuring the peace of mind of the investor. The PMS products currently offered are aimed at meeting investor's need for successful long-term wealth creation by following strategies that control risk and optimize returns in a mutual fund portfolio. The advisory Services leverages
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upon with its rich experience in portfolio management with in-depth knowledge & expertise in mutual funds. The decisions on the mutual fund portfolio also combine results of time tested proprietary research models, extensive due-diligence of fund houses, interactions with fund managers & internal risk controls. The defined processes and smart use of technology further ensures that the investors are offered with quality portfolio management and administrative services, ensuring a complete peace of mind. Real Estate The Ravi Investors offers an integrated service model offering end-to-end services to various stake-holders in realty program management & execution. The idea is to associate with stakeholders and engage actively in various stages of program management, viz. market survey, and legal due diligence, land acquisition, planning & execution of projects and managing sales & distribution through the company wealth advisory network. Managing realty programs is a lengthy process replete with many challenges right from program identification to marketing. As a developer, investor or land owner, one may be keen to execute realty projects, but may not be equipped with the right skill-sets, contacts, experience and/or know-how for the undertaking. This is where the company can associate and help in shaping up the realty programs. Insurance Broking: The insurance broking seeks to provide customers with comprehensive solutions catering to their insurance needs. It is a strong vision for continued financial well-being for customers like individuals & families, regardless of any circumstances. The company key to offer right advice which is unbiased & customer centric & encompasses the right risk to insure, the right coverage, the right product & at the right time. The idea to offer clients with comprehensive solutions extends further to cover quality claim settlement & other services. Global Wealth Advisory: Global wealth seeks to offer a Global Wealth Advisory platform to advisors for offshore funds across the globe. The vision at Global Wealth Advisory platform is to offer a single window for investment opportunities across the globe to customers. The idea is to bring to customers a wide range of offshore fund schemes through advisors on the Global Wealth Advisory platform. The company seeks to provide an offshore fund distribution platform & offshore Portfolio Advisory

services under a B2B distribution model. It also desires to offer comprehensive order routing and trade settlement facility with support services of client reporting & fees settlement.

THEORETICAL ASPECTS OF THE TOPIC

Currency Depreciation
Currency depreciation is the loss of value of a country's currency with respect to one or more foreign reference currencies, typically in a floating exchange rate system. It is most often used for the unofficial increase of the exchange rate due to market forces, though sometimes it appears interchangeably with devaluation. Its opposite, an increase of value of a currency, is currency appreciation. The depreciation of a country's currency refers to a decrease in the value of that country's currency. For E.g.: when the Indian Rupee depreciates relative to US Dollar, the exchange rate of US Dollar is rises, which takes more Indian Rupee to purchase 1 dollar (1 INR = 55 US $ - 57 US $) When the INR depreciates relative to US dollar, the Indian Rupee becomes more competitive because the price of Indian goods when exchanged to US dollar will be cheaper leading to a larger Indian exports. On the other hand, US Countries that denominated in dollars will thus become more expensive in India. The appreciation of a country's currency refers to an increase in the value of that country's currency. Continuing with the INR & US Dollar example: If the Indian Rupee appreciates relative to US dollar the exchange rate falls. It takes fever Indian Rupee to purchase 1 dollar (1US dollar = 59 INR- 56 INR). When the Indian rupee appreciates to US dollar, the Indian Rupee will become less competitive. This will leads to larger import of US products & services & lower export of Indian goods & services. Let us see the depreciation or appreciation of Rupee on Indians living in India. Here I am assuming that initially the exchange rate of US$ - INR is Rs: 55 Effects on importers If Rupee depreciates (For e.g.: when US$ - INR moves from Rs: 55 to Rs: 60) If Rupee appreciates
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(For e.g.: when US$ - INR moves from Rs: 55 to Rs: 52) Imports become costly as for each US$ we have to pay Rs: 5 more & the imports of goods & services will become more & more costly. Imports become cheaper as for each US$ we have

to pay Rs: 3 less & the imports of goods & services will be cheaper. Exporters will have higher revenue. For export of each dollar the exporter will get Rs: 5 more. The exporters will buy more goods & service & also he will earn more. Exporter will earn

lower revenue. For export of each dollar he will get Rs: 3 less. The exporters will buy fewer goods & service & he will also earn less. Indians who wish to go on Holidays Abroad For each dollar taken abroad for spending, the traveller has to pay Rs: 5 more & thus his trip become costlier. For each dollar he intends to

take abroad for spending, the traveller has to pay Rs: 3 less & thus his trip will become cheaper Reasons for Depreciation 1. Political Environment of the country 2. Retrospective taxation 3. Inability to pass any policy reforms & others clouds surrounding the Indian Economy. 4. Loss of confidence of investors 5. Money flowing out of Indian equities. The major causes of depreciation are: Withdrawals of FIIs strengthening of dollar weaker capital markets Other capital flows Political uncertainty & corruption Demand supply rule Fiscal deficit Oil Prices
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 Eurozone crises Rise in gold prices

Impact of Rupee depreciation on Indians Exporters are the biggest beneficiaries NRIs become richer Tourism industry will flourish as the holidays in India will get cheaper Imports will become expensive Oil prices will rises Rise in inflation Poor returns on FIIs Difficulty in repayment of loans Foreign education will become expensive Foreign holidays will become expensive

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LITERATURE REVIEW
1) A study of influence of FII flows on Indian stock Market BY: Anubha Shrivastav on GYANPRATHA ACCMAN Journal of Management, VOLUME 5, and Issue 1 Since Indian stock market is vast and attract investors as a hotspot of investment .The Indian market is steadily growing and had allured domestic investors community and foreign investors group in the past .the major part of investment in Indian market is attributed to institutional investors among whom foreign investors are of primary importance. One eminent concern in the matter is whether these foreign investors (FII) direct the Indian stock market .This paper examines whether market movement can be explained by these investors and their impact on the stock markets. FII, because of its short-term nature, can have bidirectional causation with the returns of other domestic financial markets such as money markets, stock markets, and foreign exchange markets. Hence, understanding the determinants of FII is very important for any emerging economy as FII exerts a larger impact on the domestic financial markets in the short run and a real impact in the long run. The present paper is an attempt to find out determinants of foreign institutional investment in India, a country that opened its economy to foreign capital following a foreign exchange crisis. The objective of the study is to find out whether there exist relationship between FII and Indian stock market. 2) Determinants of Exchange rate in India BY: Mita H. Suthar, H.L. Institute of Commerce April 21, 2008 Appreciation or depreciation of the domestic currency depends on the supply of foreign exchange reserves, liquidity conditions in the economy as determined by money supply, central bank's policy intentions and differences in the interest yield on dated securities of the concerned economies. The present research tests validity of this hypothesis in association with the exchange rate between the Indian rupee and the US dollar. In particular, an attempt is made to investigate the impact of bank rate policy of the Reserve Bank of India (RBI) and interest yield differentials between the India and the US
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securities. Impact of broad money supply and foreign exchange reserves is also analyzed. A monthly time series from April 1996 to June 2007 is used for the purpose. It is observed that the monetary policy intentions depicted by the bank rate of the RBI, the short-term and long-term domestic interest differentials and interest yield differentials, and the rate of change of foreign exchange reserves have a significant impact on the monthly average of the exchange rate between Indian rupee and the US dollar and quite in line with the economic theory. 3) Determinants of Foreign Institutional Investors Investment in India By: Manjinder KAUR, Sharanjit S. DHILLON The present study aims at exploring the determinants of Foreign Institutional Investors (FIIs) investment in India. Returns on Indian stock market have positive Impact whereas US stock market returns have no significant influence on FIIs Investment to India. Stock market risk has negative influence on FIIs inflows to India. Market capitalization and stock market turnover of India have significant Positive influence only in short-run. Among macroeconomic determinants, economic Growth of India has positive impact on FIIs investment both in long-run and short run. But all other macroeconomic factors have significant influence only in long-run like inflation in US has positive influence whereas inflation in India has negative Influence on FIIs investment. Further, US interest rate has adverse impact on FIIs Investment while liberalization policies of India exhibited significant contribution to FIIs inflows. Study concludes that FIIs inflows in India are determined by both stock Market characteristics and macroeconomic factors.

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RESEARCH METHODOLOGY
About the Topic:
My topic of SIP is Impact of Rupee Depreciation on Indian Stock Market.

Objective of Study:
The topic of my study was to find out the impact what happens to Indian stock market when the rupee depreciates. This will help me to identify what is the real effect happens to Indian Stock market when the rupee falls. Use of the correlation & Regression technique to find out what is the impact on the stock market when rupee depreciates.

Importance of Study:
1. The importance of the study will help me to find out what problems will create to the working of the Indian Companies when the Rupee depreciates. 2. The study will help to know the current position of the companies working. 3. It will help to know how the company will operate in the future as due to continuously decreasing of rupee & how the company will carry on their business in the future, so that the company can overcome from the effect of Rupee depreciation.

Benefit of the study: 1. The benefit from the study will be identifying what effect creates on the working of the
company when the rupee depreciates.

2. It helps me to see & identify the performance of the company of last 4 & 5 years as the
rupee depreciates.

3. It will give a better idea that whether the company efficiency or performance is decreased
or gone up as the rupee depreciates.

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4. It will also help me to identify the impact it creates to the stock market when the rupee
depreciates.

5. It will also help me to find out whether there is a positive relation or negative relation to
the Sensex when the rupee depreciates.

6. It will also help me to find out how the rupee depreciates effect on the top 30 companies
in terms of market capital will affect who are doing business nationally or internationally.

7. The data is taken on daily basis which will give more accurate performance of the
exchange rate correlation & the companies.

Research Design
My research design use for this project is Exploratory Research Design. The reason for choosing the exploratory research design is that my topic is impact of rupee depreciation on Indian stock market. Here on this topic I am already explaining the problem that when the rupee depreciates there is problem which occurs to the Indian stock market.

Data Collection Technique:

The data which will be used to do my study will be secondary data. Secondary data will be used in the sense that it will see the last 5 years price of exchange rate of INR v/s US Dollar, British Pound, Japanese Yen, and European Euro. To know the impact of rupee depreciation the Karl Pearson coefficient correlation & Regression analysis have been used. It would show that whether the impact is positive or negative and how much the Indian Stock market would vary with respect to FII. For the Purpose of Calculation MS Excel software have been utilized. Here also the company financials report will be seen to know that the impact on the performance of the companies in the stock market when rupee depreciates

Sample Design:
The sample design will be of 30 companies who are listed on the Sensex. And also the exchange rate price of G5 countries to identify & know the impact on the Indian stock market.

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Data Collection Tools: 1. 2. 3. 4. Exchange Rate Data of last 4-5 years BSE Sensex data of last 4-5 years Correlation Analysis of the companies with the exchange rate Regression analysis to find the impact of Exchange rate with BSE Sensex

Limitations of the study: The project has been prepared in two months, so due to time limitation depth analysis of such a wide concept may contain some lacuna. In this report impact of rupee depreciation on the stock market has been analyzed considering only BSE Sensex. But only this cannot depict exact picture or impact of the stock market. The secondary data that I have used in this study may not give true picture of the concern. Adequate data is not available for study. Only Correlation and Regression analysis of Exchange rate & BSE Sensex has been taken which might not give the real impact on it.

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ANALYSIS OF DATA
Rupee Depreciation effect on Indian Stock Market
Now let see the effect of the G5 countries in the Indian Stock Market. The G5 countries which I have taken are: Name of the Country United States of America Germany Japan France United Kingdom Currency US Dollar European Euro Japanese Yen European Euro British Pound

Of the currency exchange rate for 5 years and along with the daily price of Sensex. The correlation & Regression Analysis of Exchange rate of 5 countries with the BSE Sensex is given below: Correlation With Sensex US Dollar British Pound European Euro Japanese Yen

-0.034539978 -0.05294473 -0.122415562 0.307330171

The above table shows that there is a negative correlation of the BSE Sensex with the US Dollar, British Pound & European Euro and there is a positive correlation of BSE Sensex with Japanese Yen of 30%.

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Regression Analysis of Exchange rate with BSE Sensex US Dollar regression analysis with BSE Sensex H0: there is a significant correlation between the US Dollar exchange rate & BSE Sensex H1: There is no significant correlation between the US Dollar exchange rate & BSE Sensex

Regression Statistics Multiple R R Square Adjusted R Square Standard Error Observations ANOVA df Regression Residual Total

0.036197126 0.001310232 0.000479375 2847.239449 1204

SS MS F Significance F 1 12784095.92 12784096 1.576965 0.209442455 1202 9744340520 8106772 1203 9757124616

Intercept 54.7773

Coefficients 17509.9379 -25.03898913

Standard Error t Stat 951.194 18.41 19.9391 -1.256

P-value Lower 95% Upper 95% 7E-67 15643.75 19376.1 0.209 -64.15832 14.0803

Lower 95.0% 15643.75 -64.15832

Upper 95.0% 19376 14.08

The adjusted R- square comes to 0.04% which shows that there is no significant correlation between the exchange rate & the BSE Sensex. British Pound regression analysis with BSE Sensex H0: There is a significant correlation between the British Pound exchange rate & the BSE Sensex H1: there is no significant correlation between the British Pound exchange rate & the BSE Sensex

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Regression Statistics Multiple R R Square Adjusted R Square Standard Error Observations

0.054796 0.003003 0.002173 2844.826 1204

ANOVA df Regression Residual Total SS MS F Significance F 1 29297097 29297097 3.620039 0.0573263 1202 9727827519 8093035 1203 9757124616

Coefficients Intercept 18374 88.5092 -26.597

Standard Error 1082.52915 13.9792593

Lower t Stat P-value Lower 95% Upper 95% 95.0% 16.9729 4.38E-58 16249.799 20497.51 16249.8 -1.90264 0.057326 -54.02396 0.828965 -54.024

Upper 95.0% 20497.51 0.828965

The Adjusted R- square comes to 0.21% which shows that there is no significant correlation between the British Pound exchange rate & BSE Sensex. Regression Analysis of European Euro V/S BSE Sensex H0: There is a significant correlation between the European Euro exchange rate and the BSE Sensex H1: There is not a significant correlation between the European Euro exchange rate & the BSE Sensex
Regression Statistics Multiple R R Square Adjusted R Square Standard Error Observations

0.124375718 0.015469319 0.014650242 2826.983797 1204

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ANOVA df Regression Residual Total 1 1202 1203 SS 150936074.5 9606188542 9757124616 MS 150936075 7991837.4 F Significance F 18.88628 1.5E-05

Coefficients Intercept 22362 72.2605 -92.912

Standard Error 1392.81 21.3795

t Stat 16.0556 -4.34583

P-value 1.05E-52 1.5E-05

Lower 95% Upper 95% 19629.85958 25095.08 -134.8570202 -50.9665

Lower 95.0% 19629.86 -134.857

Upper 95.0% 25095.08 -50.9665

The Adjusted R Square find out is 1.465% which proves that there is no significant correlation with the exchange rate of European Euro & BSE Sensex. Regression Analysis with the Japanese Yen & BSE Sensex H0: There is a significant relation with the Japanese Yen exchange rate & BSE Sensex H1: There is no significant relation with the Japanese Yen exchange rate & BSE Sensex
Regression Statistics Multiple R R Square Adjusted R Square Standard Error Observations

0.30669 0.09406 0.09331 2711.81 1204

ANOVA df Regression Residual Total SS MS F Significance F 1 917745009.6 9.18E+08 124.7972 1.23E-27 1202 8839379607 7353893 1203 9757124616

Intercept 63.66

Lower Coefficients Standard Error t Stat P-value 95% Upper 95% 11085.9 475.0018283 23.339 1E-99 10153.93 12017.78 96.2204 8.613202598 11.171 1.2E-27 79.32179 113.119

Lower 95.0% 10153.93 79.32179

Upper 95.0% 12017.78 113.119

The Adjusted R-Square comes to 9.33% which shows that there is little correlation between the exchange rate of Japanese Yen & the BSE Sensex of
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The Factors which leads to moving of the Sensex price is: 1) The inflow and outflow of the Foreign Institutional Investor on Equity and Debt 2) The working of the top 30 companies on the Sensex

1) The inflow & outflow of FII:

Foreign Institutional Investor means an investor or investment fund that is from or registered in a country outside of the one in which it is currently investing. Institutional investors include hedge funds, insurance companies, pension funds and mutual funds. Year 2008-09 2009-10 2010-11 2011-12 2012-13 FII Equity (Rs: in Crore) -47706.2 11021.88 700759.5 54570.9 139408.1 FII Outflow (Rs: in Crore) -1895.2 32437.7 36317.3 49987.9 21745.8

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800000 700759.5 700000 600000 500000 400000 300000 200000 139408.1 100000 0 -100000 -47706.2 11021.88 -1895.2 2008-09 32437.7 36317.3 54570.9 49987.9 2011-12 21745.8 2012-13 FII Equity FII Debt

2009-10

2010-11

From the diagram it is clear that in year 2008-09 the outflow was very high and the inflow is very low as comparing to the others years data of inflow and outflow of FII. The year 2008-09 was a year where the biggest recession came on January 21, 2008 where the Americas biggest bank of Lehman Brothers was felt bankrupt which a major panic is broke out on the interbank loan market. Due to this recession in the USA which leads to Investors to withdraw their money which they have invested in the Indian Stock market to fight & survive on this panic recession of year 2008. After wards in the later years the US economy was come on the path of stabilizing then the again in the later years the FII again started on investing in the Indian Stock Market. This can be see that in the above chart that in the year in FII equity there is a huge inflow & less outflow. This trend is continuously we can see that inflow is increases in the Indian stock market & outflow is decreases from the Indian stock market.

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Thus the above diagram tells us that there is a huge inflow of FII & less outflow of FII which leads to increase the daily price of Sensex index.

2. The top 30 companies working in the Sensex

A) Bajaj Auto Let us see the Bajaj Company working performance, so that whether there is a positive impact or negative impact in the working of the company. EPS: EPS stand for Earning per Share it is a portion of a companys profit which is allocated to each outstanding share of common stock. Year 2008-09 2009-10 2010-11 2011-12 Earnings Per Share 37 55.2 119.4 105.2

119.4 120 100 80 60 37 40 20 0 2008-09 2009-10 2010-11 2011-12 55.2 105.2

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It explains that the company faster its earnings & it grows very fast, & it also helps to faster its stock price increases & it can go higher on its working. As from the graph we can easily see that in the year 2008-09 the company EPS was Rs: 37 but afterwards its gone on increase only till 2010-11 where its reached to 119.4 but again in the year 2011-12 it falls to 105.2 but again the companies earning per share is gone increasing only. Company Performance with the Exchange rate: Correlation with Bajaj Auto US $ Pound Euro Yen

0.53785441 0.196639423 0.252496986 0.832873594

From the graph it is found that there is positive correlation or the impact on the exchange rate performance with the company share price. It is found that with US$ there is a 53% impact on the performance of the company. While there is a 19% impact of pound into company performance & 25% performance of impact in Euro & maximum impact of 83% of Yen to the working of the company. ROCE: Return on Capital Employed is used to prove the value the business gains from its assets & liabilities.

2008-09 2009-10 2010-11 2011-12 ROCE 31.06 61.15 68.39 67.2

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ROCE
80 60 40 20 0 2008-09 2009-10 2010-11 2011-12 31.06 ROCE 61.15 68.39 67.2

ROCE explained that how much return company gets on its capital employed. While we see the graph the ROCE of the company is continuously going on increase only. This shows that company is getting higher return on the capital employed. FII Inflow & Outflow: The FII inflow will be seen from the share holding pattern of the company of the last 5 years. Bajaj Auto LTD Promoters GDRS FII Public Financial institutions Mutual funds Nationalized & other banks NRI & OCBs others 2008-09 60.89% 0.13% 13.81% 5.75% 3.41% 0.08% 0.45% 15.48% 2009-10 60.89% 0.13% 13.81% 5.75% 3.41% 0.08% 0.45% 15.48% 2010-11 60.33% 0.08% 15.99% 2.76% 2.61% 0.18% 0.46% 17.59% 2011-12 60.61% 0.06% 16.42% 3.21% 2.52% 0.04% 0.41% 16.73%

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70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 2008-09 10.00% 0.00% 2009-10 2010-11 2011-12

From the chart we come to know that the FII investment on the company capital is continuously going increasing only. This chart will help us to know that the company inflow on FII is high & there is a less outflow of the FII. B). Tata Consultancy Service: Let us see the TCS working performance EPS:TCS last 4 years EPS 2008-09 EPS 26.81 2009-10 35.67 2010-11 46.27 2011-12 53.07

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EPS
100 50 0 2008-09 2009-10 EPS 2010-11 2011-12 26.81 35.67 46.27 53.07 EPS

By looking to the chart we can find out that company is continuously is going up which means company earnings per share is high. Company Performance with the exchange rate

Correlation with TCS US $ Pound Euro Yen

0.687277272 0.014125214 0.273329375 0.89578951

This shows that there is a positive correlation of the exchange rate with the working of the company. Maximum effect of the company is seen with the exchange rate is of Yen which tells that there is an 89% of impact of Yen on the performance of the company.

27

 FII inflow & outflow on the company share holding pattern

Tata Consultancy Service Promoters Holding Insurance companies Indian Public & others Mutual Fund & UTI Corporate bodies Banks. FI, STATE & CENTRAL GOVT. FII NRI/OCB/Foreign Nationals 0.11% 10% 0.12% 0.02% 12.43% 0.11% 0.04% 12.64% 0.10% 0.02% 14.02% 0.10% 2008-09 76.21% 5.28% 5.04% 2.47% 0.77% 2009-10 74.13% 5.51% 4.77% 2.32% 0.71% 2010-11 74.05% 5.68% 4.50% 2.39% 0.60% 2011-12 73.98% 5.41% 4.23% 1.77% 0.47%

90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 2008-09 2009-10 2010-11 2011-12

From the above chart its clear that the company is getting more & more FII & there percentage of FII is increasing in each year.

28

 ROCE: 2008-09 ROCE 43.27 2009-10 42.46 2010-11 44.38 2011-12 55.31

ROCE
60 40 ROCE 20 0 2008-09 2009-10 2010-11 2011-12 55.31 43.27 42.46 44.38

Now from the chart we can see that company ROCE is continuously ups & down but its giving a good return to the company. C) Tata Steel EPS: EPS 2008-09 69.45 2009-10 60.26 2010-11 99.03 2011-12 54.28

Earnings Per Share

100 50 0 2008-09 2009-10 2010-11 69.45 60.26 54.28 99.03

2011-12

29

From the graph it is clearly seen that the EPS in year 2009-10 is reduced as compared to 2008-09 but in the year 2010-11 which found to be the good year for the company where the EPS gone up to 99.03 from 60-26 but in the next two years 2011-12 & 2012-13 the EPS was gone down it comes to 52.13 in 2012-13. ROCE: 2008-09 2009-10 ROCE 15.01 13.06 2010-11 13.48 2011-12 15.03

ROCE
16 15 14 13 12 15.01 13.06 13.48 15.03

2008-09

2009-10

2010-11

2011-12

From the chart we can see that the company ROCE was 15.01 which remarkably reduced for the next two year comes to 13.48 & then in 2011-12 it goes up to 15.03 & again in 2012-13 it comes down to 12.8 which is very less as compared to all the 4 years. This is due to company has to produced steel for which they required more or more units of raw material to import which makes the company to pay more because of depreciating Rupee.

30

 FII inflow & outflow from share holding pattern 2008-09 Promoters FII MF/UTI Individuals state & central govt. Bodies corporate CDRs insurance companies FI/ Banks 40.86% 13.19% 11.69% 15.02% 0.09% 2.20% 2.15% 14.00% 0.80% 2009-10 36.12% 18.80% 8.01% 18.37% 0.09% 2.10% 1.90% 14% 0.61% 2010-11 30.60% 17.36% 10.89% 20.51% 0.08% 2.90% 2.15% 15% 0.51% 2011-12 31.25% 14.36% 10.02% 21.06% 0.08% 2.49% 1.24% 19.00% 0.50%

45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%

2008-09 2009-10 2010-11 2011-12 2012-13

By looking to the diagram we can found out that the FII investment in Tata Steel is continuously reducing & the foreign investment is continuously reduced in Tata Steel Company.

31

 Company Share Performance with the Exchange rate: Correlation with Tata Steel US $ Pound Euro Yen

0.143057003 -0.605291252 -0.203007961 0.146838668

Here while finding the correlation with the exchange rate & company it is found that there is a positive correlation with the US $ & Japanese Yen at 14%. This shows that there is not much heavy effect on the performance of the company when rupee depreciates. But when we see the correlation of the company with the Pound & Euro there is a negative correlation, it tells that when the rupee depreciates the performance of the company goes up. D) Wipro EPS

2008-09 EPS 26.81

2009-10 31.78

2010-11 21.72

2011-12 22.88

EPS
35 30 25 20 15 10 5 0 31.78 26.81 21.72 22.88 EPS

2008-09

2009-10

2010-11

2011-12

We can see from the chart that EPD in 2009-10 increased but in the year 2010-11 it is reduced & come down to 22.88 from 31.78 in year 2011-12.
32

 FII inflow or outflow from share holding pattern

Wipro LTD 2008-09 2009-10 2010-11 2011-12

Promoters mutual funds/ UTI FI/Banks insurance companies FII corporate bodies Individual NRI trust Wipro DR Issued

79.32% 0.68% 0.07% 1.26% 5.91% 3.41% 6.20% 1.02% 0.51% 1.62%

79.52% 0.63% 0.10% 1.04% 7.23% 2.88% 5.49% 0.95% 0.60% 1.56%

79.28% 1.04% 1.62% 1.05% 5.38% 2.99% 5.44% 0.94% 0.58% 1.68%

78.41% 2.03% 0.02% 1.36% 6.67% 2.82% 5.33% 0.95% 0.70% 1.71%

80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00%

2008-09 2009-10 2010-11 2011-12

We can see from the chart that in Wipro LTD, the FII investment is continuously going on increase only. There is no continues increase which means that FII inflow in the Wipro LTD is high rather than FII outflow.

33

 ROCE:
2008-09 ROCE 26.77 2009-10 23.06 2010-11 22.34 2011-12 21.41

ROCE
30 25 20 15 10 5 0 2008-09 2009-10 2010-11 2011-12 26.77 23.06 22.34 ROCE 21.41

We can see from the chart that the company performance on ROCE is continuously reducing from 2008-09 till 2011-12. The company performance is going downward only. Company Performance with the Exchange rate Correlation with Wipro US $ Pound Euro Yen

0.420607289 -0.272352899 0.040477673 0.688006745

There is a positive correlation of the company performance with the exchange rate of US$, Euro & Yen, this tells that when the rupee depreciates the company performance on the stock market also depreciates. While there is a negative correlation of the company with the British Pound, this tells that when the rupee depreciates the company performance on stock exchange also increases.

34

E) Reliance Industries: EPS

2008-09 EPS 54.11 2009-10 82.29 2010-11 64.75 2011-12 66.15

EPS
100 80 60 40 20 0 2008-09 2009-10 2010-11 2011-12 54.11 82.29 64.75 66.15 EPS

You can see that the EPS is gone up to 82.29 Rs in 2009-10 as compared to 2008-09. While in the next 3 years the company EPS is increasing but in a downward trend. ROCE:
2008-09 ROCE 10.93 2009-10 10.75 2010-11 11.14 2011-12 10.83

ROCE
12 11 10 2008-09 2009-10 2010-11 10.93 10.75 11.14 10.83

2011-12

We can see from the diagram that the ROCE is going upwards & downwards. There is no stable pattern on its ROCE.
35

 FII inflow & outflow pattern

2008-09 Promoter MF/UTI FI/Banks Central govt.& state govt. Insurance companies FII Corporate bodies Individuals NRI/OCB Any others clearing members CADR 44.73% 2.28% 0.26% 0.10% 7.81% 17.62% 4.69% 12.58% 0.74% 6.07% 0.07% 3.05% 2009-10 44.74% 2.02% 0.30% 0.15% 7.86% 16.78% 4.97% 13.01% 0.76% 6.07% 0.14% 3.20% 2010-11 44.72% 2.59% 0.23% 0.10% 7.87% 17.70% 4.33% 12.47% 0.73% 6.07% 0.09% 3.10% 2011-12 44.75% 2.60% 0.13% 0.10% 7.88% 17.55% 5.25% 12.01% 0.70% 5.93% 0.10% 3.00% 2012-13 45.34% 2% 0.13% 0.10% 8.77% 17.76% 4.65% 11.41% 0.67% 5.54% 0.10% 3.53%

50.00% 45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%

2008-09 2009-10 2010-11 2011-12 2012-13

We can see that in Reliance Industries FII inflow is continuously in a stable position. The FII is stuck with a same position in each year.

36

 Company Performance with exchange rate: Correlation with Reliance US $ Pound Euro Yen

0.431359698 -0.288133249 0.198812553 0.449861411

There is a positive correlation with the exchange rate of Dollar, Euro & Yen at 43%, 19% & 44%. This means that when the rupee depreciates on this exchange rate the performance of the company on the Sensex also decreases while there is negative of relation of the company with the British Pound of 28% which shows that when rupee depreciates the company performance on Sensex goes up. E) HDFC Bank: EPS:

2008-09 EPS 52.95

2009-10 68.82

2010-11 86.45

2011-12 22.45

EPS
100 52.95 50 0 2008-09 2009-10 2010-11 22.45 EPS 2011-12 EPS 68.82 86.45

We can see from the chart that the EPS is in one year going up & another year going down.

37

 HDFC Bank Performance with the exchange rate: Correlation with HDFC Bank US $ Pound Euro Yen

0.667758363 0.005367191 0.248634287 0.832923412

There is a positive correlation of HDFC Bank with the exchange rate. But when the correlation found of HDFC Bank with the Pound there is almost a 0.5% correlation which shows that there is a no correlation between the HDFC Bank performances with the pound exchange rate. FII inflow & outflow in HDFC Bank shares share holding pattern Promoter & Promoter Group MF/UTI FI/Banks Insurance companies FII corporate bodies Individual CADRs NRI/OCB 2008-09 24.65% 4.50% 0.06% 6.36% 28.14% 7.80% 10.30% 17.30% 0.93% 2009-10 23.25% 4.68% 0.07% 6.36% 29.14% 8.72% 9.13% 17.44% 1.21% 2010-11 23.06% 4.44% 0.01% 6.22% 31.13% 8.60% 8.72% 17.23% 0.61% 2011-12 22.83% 3.86% 0.03% 4.70% 34.07% 8.19% 8.69% 17.08% 0.55%

40.00% 30.00% 20.00% 10.00% 0.00% 2008-09 2009-10 2010-11 2011-12

38

We can see from the chart that in HDFC the FII data is continuously increasing in all the years. This shows though there is rupee depreciation is more but the FII investor will have confidence that the share will work positively & due to this the FII investment is continuously going up. F) Tata Power
FII inflow & outflow pattern

Share Holding Pattern Promoters Group Mutual Fund / UTI Financial institutions/ banks Central & state govt. insurance companies FII Individuals Bodies corporate trust foreign bodies CADRs
35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%

2008-09 33.26% 6.88% 0.17% 0.06% 22.23% 18.53% 17.78% 0.87% 0.02% 0.10% 0.10%

2009-10 31.22% 7.40% 0.29% 0.05% 22.06% 17.92% 15.97% 0.68% 0.05% 0.47% 3.89%

2010-11 31.81% 4.36% 0.24% 0.04% 24.04% 19.83% 15.34% 0.61% 0.11% 0.11% 3.51%

2011-12 31.81% 3.33% 0.40% 0.03% 22.80% 21.87% 15.41% 0.95% 0.15% 0.02% 3.23%

2008-09 2009-10 2010-11 2011-12

39

We can see from the graph that the FII inflow is continuously going to increase only, due to the rupee depreciation still the Investor are keen to more & more on this share. EPS:

EPS 2008-09 57.09

90 80 70 60 50 40 30 20 10 0 -10

2009-10 85.01

2010-11 8.79

2011-12 -4.98

85.01

57.09

8.79 -4.98 2008-09 2009-10 2010-11 2011-12

Well the Company EPS has been drastically reduced in the year 2010-11 & 2011-12 from the year 2009-10. It shows the company performance on earnings per share is reducing. The reason for the EPS going down because in year 2011-12 the company PAT was (968.29 Cr.) Due to this reason the company EPS was gone down. ROCE: 2008-09
ROCE 15%

2009-10
13%

2010-11
10%

2011-12
9.29%

40

Return on Capital Employed

16% 14% 12% 10% 8% 6% 4% 2% 0% 2008-09 2009-10 2010-11 2011-12 10% 9.29% Return on Capital Employed 15% 13%

We can see from the chart that the company ROCE is continuously going on decreasing only. In every year the company ROCE is getting down which shows that company return on capital is very less. Tata Power performance with the exchange rate: Correlation with Tata Power US $ Pound Euro Yen

0.556982947 0.355583949 0.425423958 0.781092659

There is a positive correlation of the company performance with the stock exchange. This shows that when the company rupee depreciates on this exchange the company performance on the stock exchange goes up. G) Sterlite Industries EPS 2008-09 EPS 49.96 2009-10 46.79 2010-11 15 2011-12 14.36 \
41

EPS
60 40 20 0 2008-09 2009-10 EPS 2010-11 2011-12 15 14.36 EPS 49.96

46.79

We can see from the chart the company performance in terms of EPS is continuously growing down. The company has a downward trend in the EPS. ROCE 2008-09 2009-10 2010-11 2011-12 ROCE 28% 22% 16% 16%

ROCE
30% 25% 20% 15% 10% 5% 0% 2008-09 2009-10 2010-11 2011-12 28% 22% 16% 16% ROCE

We can see from the chart that the company ROCE is going downward in the year 2009-10 as compared to 2008-09. And in the year 2010-11 & 2011-12 company able to maintain the ROCE at 16%.

42

 FII Pattern
Sterlite Industries Promoters Bank & Financial Institutions FII Mutual Fund Private corporate bodies Indian Public NRI/OCBs Share hold by custodian with DR issued clearing members trust Foreign Bodies - DR
70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00%

2008-09 61.19% 4.82% 8.60% 3.53% 3.80% 4.08% 0.29% 10.68% 0.50% 2.51% _____

2009-10 52.07% 4.21% 14.29% 3.75% 5.04% 3.15% 0.11% 14.87% 0.11% 2.12% 0.28%

2010-11 57.72% 5.14% 13.23% 3.50% 5.72% 3.91% 0.16% 8.08% 0.08% 2.14% 0.33%

2011-12 53.31% 5.65% 11.92% 3.82% 5.63% 4.36% 0.18% 12.45% 0.29% 2.15% 0.24%

2008-09 2009-10 2010-11 2011-12

Now we can see from the chart that the company investment in FII is continuously going downward because the FII pattern is completely going down on every year.

43

 Company Performance with the exchange rate: Correlation with Sterlite Industries US $ Pound Euro Yen

-0.644326353 -0.426720217 0.675836038 -0.495469074

There is a negative relation of the company performance with the US Dollar, Pound & Yen. This shows that when the rupee depreciates the company performance on the stock exchange goes up. But when we see the correlation of company performance with the European Euro there is a positive correlation it shows that when rupee depreciates again Euro the company performance also depreciates. H) Infosys: FII Inflow & Outflow Infosys Promoters Mutual funds Banks, FI & Insurance Co. FII Private corporate bodies Indian Public NRIs/OCB/Foreign nationals trusts equity share underlying ADS 2008-09 16.49% 3.58% 4.16% 34.86% 3.51% 16.89% 0.89% 0.49% 19.13% 2009-10 16.04% 4.02% 3.91% 36.36% 5.40% 14.33% 0.81% 0.50% 18.63% 2010-11 16.04% 4.60% 4.40% 36.12% 6.70% 13.18% 0.86% 0.50% 17.60% 2011-12 16.04% 4.69% 11.87% 39.02% 0.54% 12.97% 0.88% 0.52% 13.47%

44

45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%

2008-09 2009-10 2010-11 2011-12

We can see from the chart that the company FII invest is continuously going up which means that in a company FII inflow is very high & the company outflow is very low. EPS

EPS
200 104.6 108.99 119.66 145.83 EPS 2008-09 2009-10
EPS

0 2010-11 2011-12

Here also we can see that the company has being continuously is gone on increasing on its Earnings per Share. As there is a rupee depreciates the company is continuously grow up on its Earnings per share. ROCE 2008-09 ROCE 40.25 2009-10 2010-11 34.1 35.74 2011-12 37.18

45

ROCE
50 40 30 40.25 34.1 2008-09 35.74 37.18 ROCE 2009-10
ROCE

2010-11

2011-12

We can see from the chart that the company ROCE is continuously decreasing in spite of its performance on EPS, the company is come down. Infosys share performance with the exchange rate: Correlation with Infosys US $ Pound Euro Yen

0.197762266 -0.314602934 -0.088218995 0.536437126

There is a positive correlation of company performance with the US $ & Japanese Yen Exchange rate at 19% & 53%. This shows that when the rupee depreciates the company performance on stock exchange also depreciates. But when we look at the performance with the Pound & Euro there is a negative correlation at 31% & 8%, this shows that when the rupee depreciates against pound & Euro the company performance on stock exchange appreciate.

46

I) Cipla FII Inflow & Outflow Share Holding pattern Promoters Mutual funds & UTI Banks, FI & Insurance FII private corporate bodies NRI/foreign corporate bodies Bank of New York Indian Public shares in transit
40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%

2008-09 39.38% 4.54% 13.87% 13.40% 2.14% 3.46% 1.06% 22.07% 0.08%

2009-10 36.80% 5% 11.67% 16.81% 3.94% 3.33% 0.82% 21.61% 0.05%

2010-11 36.80% 6% 12.59% 15.26% 4.41% 3.37% 0.48% 20.97% 0.12%

2011-12 36.80% 6.85% 10.35% 16.07% 6.23% 3.32% 0.09% 20.18% 0.11%

2008-09 2009-10 2010-11 2011-12

We can see from the diagram there is a continuous inflow of FII in the company shares, which means that company is getting every year high percentage of FII as a investment in the company. EPS 2008-09 2009-10 2010-11 2011-12 9.92 13.7 12.32 14.25

EPS

47

EPS
15 10 5 0 2008-09 2009-10 2010-11 2011-12 13.7 9.92 12.32 14.25

EPS

We can see from the chart that the company EPS is having both upward & downward trend. As in year 2009-10 its increase compared to 2008-09 but in year 2011-11 it came down & again in year 2011-12 it goes up which means company is performing good on EPS. ROCE: 2008-09 ROCE 22.39 2009-10 22.16 2010-11 16.22 2011-12 18.74

ROCE
25 20 15 10 5 0 2008-09 2009-10 2010-11 2011-12 ROCE 22.39 22.16 16.22 18.74

Company ROCE is going down in all the year as company from the year 2008-09 which means that the company returns has been gone down. So the company has to work on it to improve its ROCE. Cipla share performance with Exchange rate: Correlation with Cipla dollar pound euro yen

0.504600579 0.020059129 0.246386406 0.714209055

48

There is a positive correlation of company performance with all the exchange rate. This shows that when the rupee depreciates the performance of the company also depreciates. The correlation with dollar is 50%, with pound is 2%, with euro 24% and yen 71%. J) Coal India EPS 2008-09 2009-10 2010-11 2011-12 EPS 5.22 5.98 7.48 12.77

There is an increase in EPS when it goes up. It shows that company earnings are being increasing as year progresses. ROCE: 2008-09 2009-10 2010-11 2011-12 36.51 57.35 45.49 50.81

ROCE

49

While we can see from the chart that the company ROCE has being increasing in year 2009-10 as compared to year 2008-09 which is a good sign for the sign. But when we see the performance of year 2010-11 & 2011-12 the company ROCE has being reduced to 2009-10. The company has to focus on the ROCE. Coal India Performance with the exchange rate Correlation with coal India dollar pound euro yen

0.172334809 0.100421155 0.217975178 0.331054001

There is a positive correlation of company performance with the exchange rate at 17%, 10%, 21% and 33%. This shows that when rupee depreciates the company performance also depreciates on stock exchange FII inflow Coal India GOI FII Indian Public Banks & FI Private corporate bodies Mutual Funds NRI/OCBs others 2008-09 2009-10 2010-11 2011-12 90% 90% 90% 90% 4.33% 6.37% 6.09% 5.44% 3.96% 1.54% 1.63% 1.47% 0.64% 0.45% 0.50% 0.80% 0.96% 0.49% 0.51% 1.22% 0.42% 1.10% 1.20% 0.96% 0.03% 0.03% 0.03% 0.03% 0.13% 0.06% 0.04% 0.08%

50

We can see from the chart that as its a Government a company 90% shares are held by the Government & rest of 10% are being distributed to others. While we see about the FII investment there is inflow is there more as compared to the outflow. K) DLF EPS 2008-09 2009-10 2010-11 2011-12 EPS 26.24 10.13 9.66 7.07

EPS
40 20 0 2008-09 2009-10 2010-11 26.24 10.13 9.66

7.07 EPS 2011-12

EPS

51

We can see from the diagram that the company EPS is going down in every year from 2008-09. In 2008-09 the company EPS was 26.24 but it comes down to Rs: 7.07 in year 2011-12. So there is a big flow down of EPS in the performance of the company. ROCE 2008-09 ROCE 14.01 2009-10 6.71 2010-11 6.86
ROCE
14.01 15 10 5 0 2008-09 2009-10 2010-11 2011-12 ROCE 6.71 6.86 8.02
ROCE

2011-12 8.02

Here again we can see that the company ROCE is getting down wards. It shows that the company returns capital employed is going down year on year. FII inflow DLF Promoter & Promoter group directors & their relatives FII NRI & foreign nationals MF & UTI Banks. FI & Insurance Co. Bodies corporate Public 2008-09 88.55% 0.03% 6.24% 0.12% 0.10% 0.25% 1.02% 3.69% 2009-10 78.64% 0.04% 14.77% 0.15% 0.28% 0.37% 1.60% 4.15% 2010-11 78.50% 0.04% 15.74% 0.10% 0.07% 0.20% 1.20% 4.15% 2011-12 78.59% 0.05% 15.47% 0.14% 0.11% 0.22% 1.34% 4.08%

52

100.00% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00%

2008-09 2009-10 2010-11 2011-12

We can see from the chart that the FII inflow continuously high as compared to the FII outflow. It means that the FII investment is going more on more as due to depreciation of rupee. DLF Performance with the Exchange rate Correlation with DLF US $ -0.614007616 Pound 0.013490514 Euro -0.346180045 Yen -0.705070372 There is a negative correlation of company share with the exchange rate of US $, Euro & Yen at 61%, 34% & 70%. This shows that when rupee depreciates the performance of the company goes on the stock exchange. While we see the performance of stock exchange with the Pound there is a positive correlation at 1.3%, this shows when rupee depreciates against pound the company performance on stock exchange also goes down.

53

L) ONGC FII inflow & outflow Share Holding Pattern President of India Banks & FI & Insurance Co. FII MF & UTI NRIs Government Companies Others Employees Public 2008-09 2009-10 2010-11 2011-12 69.23% 74.14% 74.14% 74.14% 10.05% 5.35% 1.56% 0.05% 10.09% 1.77% 0.07% 1.83% 5.52% 4.45% 2.11% 0.05% 10.09% 1.65% 0.08% 1.91% 5.74% 4.17% 2.21% 0.04% 10.09% 1.91% 0.10% 1.61% 4.91% 5.43% 1.72% 0.04% 10.09% 1.90% 0.10% 1.67%

80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00%

2008-09 2009-10 2010-11 2011-12

We can see from the chart that company FII trend was going upward in one year & in the next year its coming down. So the investors are investing or withdrawing their money by keeping the market performance EPS 2008-09 EPS 26 2009-10 22.68 2010-11 26.25 2011-12 32.9
54

EPS
40 20 0 2008-09 2009-10 EPS 2010-11 2011-12 EPS 26 22.68 26.25 32.9

We can see that in the starting company has being reduced but in the later years the company EPS has been gone to increase in the year 2010-11 & 2011-12. ROCE 2008-09 ROCE 34.29 2009-10 34.54 2010-11 33.97 2011-12 28.54

ROCE
40 30 20 10 0 2008-09 2009-10 2010-11 2011-12 ROCE 34.29 34.54 33.97 28.54

We can see from the chart that the company Return on capital employed is continuously going down ward. Due to this the company return on capital is down & the company has to well, so that in the later years the company performance goes up.

55

 Company Performance with the stock exchange: Correlation with ONGC US $ Pound Euro Yen There is a positive correlation

0.531380047 0.217821228 0.316328497 0.817843729

of the performance of the company with the exchange rate. This

shows that when the rupee depreciates the company performance also on stock exchange also goes down. The maximum effect of company performance on downward stream is 81% which means the effect of rupee depreciation against Yen is heavy. M) ICICI Bank FII inflow & outflow ICICI Report Promoters FII & Foreign Banks Insurance companies Bodies corporate Banks & Financial institutions Mutual funds Individual
45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%

2008-09 27.12% 36.64% 15.29% 5.80% 0.85% 6.35% 7.95%

2009-10 28.28% 38.06% 17.44% 2.69% 0.70% 6.86% 5.97%

2010-11 26.00% 39.58% 17.00% 4.50% 0.08% 7.37% 5.47%

2011-12 26.85% 36.31% 17.68% 4.49% 0.12% 8.84% 5.71%

2008-09 2009-10 2010-11 2011-12

56

We can see from the graph that the FII inflow is going upwards which shows that there is a huge inflow of FII in the company shares, but in the year 2011-12 the FII was reduce to 3% which shows outflow is more than inflow. EPS 2008-09 EPS 32.13 2009-10 41.93 2010-11 53.54 2011-12 66.63

We can see that from the chart the company EPS is continuously going upwards which means that company is giving more earnings per share as the year goes on. ICICI share performance with the Exchange rate: Correlation with ICICI Bank US $ 0.175734186 Pound -0.117495791 Euro -0.081843359 Yen 0.452874629 There is a positive correlation of company performance with the Dollar & Yen at 17% & 45%. This means that when the rupee depreciates the company performance on stock exchange also depreciates. But when we see against the Pound & Euro there is a negative correlation at 11% & 8%, this shows that the company performance is well as against the depreciation of rupee.

57

N) Tata Motor FII inflow & outflow pattern 2008-09 Promoters group Mutual Fund / UTI Central & State Govt.
45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%

2009-10 37% 3.60% 0.08% 13.80% 23.59% 8% 0.48% 0.22% 0.03% 12.82% 0.14%

2010-11 34.83% 1.40% 0.09% 11.81% 23.60% 7.24% 0.45% 0.11%

2008-09 2009-10 2010-11

2011-12 34.99% 1.65% 0.09% 10.98% 27.75% 7.21% 0.45% 0.21% 0.08% 16.59% 0.12%

38.78% 2.74% 0.09% 13.45% 22.65% 7.39% 0.50% 0.25% 0.03% 14.00% 0.12%

Insurance Companies FII Individuals NRI Clearing Member Trust CADR FI / Banks

0.03% 2011-12 20.28% 0.16%

We can see that from the chart though the company performance is going downward but there is a continuous increase in the investment made by FII, so the inflow is more in these years on company performance.

EPS
2008-09 EPS basic -56.88 2009-10 48.64 2010-11 31.05 2011-12 42.58

58

EPS basic
100 50 0 2008-09 2009-10 2010-11 2011-12 -50 -100 -56.88 48.64 31.05 42.58 EPS basic

We can see that in year 2008-09 was very heavy for the businesses to continue their business because of the major recession come on the USA & which stops the company to perform well & due to this the company has to import raw material by paying more money than the previous year which makes the company to perform downwards. ROCE 2008-09 2009-10 ROCE 6.41 10.37 2010-11 10.19 2011-12 10.36

ROCE
12 10 8 6 4 2 0 2008-09 2009-10 2010-11 2011-12 6.41 ROCE 10.37 10.19 10.36

We can see that company ROCE is increasing in every year, which means that company is giving good return on the capital employed. Tata Motor Performance with the Exchange rate: Correlation with Tata Motor
59

US $ 0.732403602 Pound 0.574088683 Euro 0.505540906 Yen 0.819040597 There is a positive correlation of company performance with the exchange rate which means that when the rupee depreciates against foreign currencies the performance of the company also goes down in the stock exchange at 73% with dollar, at 57% with Pound, at 50% with Euro & at 81% with Yen. P) Sun Pharma Ceutical EPS 2008-09 EPS 87.8 2009-10 65.2 2010-11 17.5 2011-12 25

EPS
100 0 2008-09 2009-10 87.8 65.2 17.5 25

2010-11

2011-12

We can see from the chart that the company Earnings per share is being in every year. In 200809 the company earnings per share was 87.8 which is decreased to 17.5 in year 2010-11, but in 2011-12 year company has shown the trend of moving upward as the company earnings per share goes up to 25 Rs. ROCE 2008-09 ROCE 26.69 2009-10 17.3 2010-11 20.3 2011-12 27.22

60

ROCE
40 20 0 2008-09 2009-10 2010-11 26.69 17.3 20.3 27.22

2011-12

IN ROCE also in year 2009-10 & 2010-11 the ROCE was down & from 26.69% to 20.3%. But in year 2011-12 company has moved upward its performance & due to this the company returns was gone high of almost 7% at 27.22%. FII inflow & Outflow pattern: Share Holding Pattern Indian Promoter & Person acting in concert Mutual Funds / UTI Bank/ FI & Insurance Co. FII & Foreign Mutual Funds Private corporate bodies Indian Public NRIs / OCBS Clearing Member Foreign Companies Trust 2008-09 63.71% 4.08% 3.29% 17.10% 5.84% 5.65% 0.09% 0.06% 0.18% 0.00% 2009-10 63.72% 2.57% 2.91% 20.22% 4.96% 5.37% 0.06% 0.04% 0.12% 0.03% 2010-11 63.72% 2.85% 4.20% 18.39% 5.11% 5.51% 0.07% 0.05% 0.06% 0.04% 2011-12 66.19% 4.63% 0.31% 3.98% 5.27% 18.69% 0.44% 0.49% 0.00% 0.00%

61

70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00%

2008-09 2009-10 2010-11 2011-12

Till year 2010-11 the company FII has high inflow less outflow but in the year 2011-12 company has huge outflow & less inflow, which means the company is reducing the FII capital from the foreign due to depreciation of rupee. Sun Pharma share performance with the exchange rate: correlation with Sun Pharma US $ Pound Euro Yen

0.586230911 0.3846725 0.383886113 0.820440598

There is a positive correlation of the company share performance with the exchange rate. This shows that company stock price continue to decrease with the depreciation of rupee. The maximum effect of decrease of company seen with the Yen because as against Yen 82% of the company share price decreases.

62

Q) L & T
FII inflow & outflow

Share holding Pattern Financial Institution FII GDRs Mutual Fund bodies corporate directors & relatives L & T employee welfare foundation general public

2008-09 32.03% 11.90% 2.94% 5.86% 5.77% 1.14% 12.70% 27.66%

2009-10 32.99% 15.18% 3.55% 4.31% 6.59% 0.84% 12.22% 24.32%

2010-11 32.98% 14.44% 2.39% 5.69% 6.27% 1.07% 12.36% 24.80%

2011-12 32.09% 15.62% 3.12% 4.32% 7.01% 0.46% 12.15% 25.23%

35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%

2008-09 2009-10 2010-11 2011-12

From the chart we can see that the company FII inflow was high in every year, after year 200809 the company is having huge Foreign Institutional Investor which means that the company has a good FII inflow & less FII outflow. EPS 2008-09 2009-10 2010-11 2011-12 64.76 91.9 73.56 76.81

EPS

63

EPS
100 0 EPS EPS 64.76 91.9 73.56 76.81

We can see from the chart company EPS is increased in the year 2009-10 as compared to 200809 but in the year 2010-11 & 2011-12 company EPS was come down to 76.81 from 91.9 which means that company earnings is being down. ROCE: 2008-09 ROCE 14.47% 2009-10 2010-11 13.48% 12.19% 2011-12 10.68%

ROCE
20.00% 14.47% 13.48% 12.19% 10.68% ROCE 2008-09 2009-10 ROCE 2010-11 2011-12

0.00%

The company ROCE has being continuously reducing, it means that company return on capital employed is having a downward trend. The company has to take measure to stop the downward trend.

64

 L & T share performance with the Exchange rate: Correlation with L & T US $ Pound Euro Yen

0.250710849 -0.343022884 -0.018647537 0.44780456

There is a positive correlation of company performance with the US $ & Yen at 25% with dollar & 44% with Yen. This shows that when rupee against Dollar & Yen depreciates there is also a decrease in the performance of the company in the stock exchange. But there is negative performance of the company against the Pound at 34% & Euro at 1%. This shows that when rupee depreciates against Pound & Euro the company performance on stock exchange goes up. R) Jindal Steel FII inflow & outflow Share Holders Pattern 2008-09 2009-10 2010-11 2011-12 Promoters 58.75% 58.59% 58.41% 58.91% FI/BANKS/MF/UTI 5.29% 2.83% 6.13% 6.89% corporate bodies 6.79% 4.72% 2.62% 3.13% FII 18.70% 23.57% 23.47% 22.31% Public 9.32% 9.19% 8.31% 7.90% NRI & Trust 1.15% 1.09% 1.06% 0.86%

70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00%

2008-09 2009-10 2010-11 2011-12

65

We can see that the FII inflow in year 2009-10 & 2010-11 is continuously going upward as compared to year 2008-09 but in the year to 2011-12 there is a 1% of decrease of FII which means there is FII outflow is more as compared to the inflow. EPS 2008-09 2009-10 2010-11 2011-12 EPS 194.45 39.05 40.22 42.42

EPS
200 150 100 50 39.05 0 2008-09 2009-10 2010-11 2011-12 40.22 42.42 194.45 EPS

We can see from the chart that the company EPS has being drastically come down from year 2008-09 till 2011-12. It goes down to Rs: 42.42 in year 2011-12. This means that the company Earnings per share has been reduced at a very high rate. ROCE: 2008-09 2009-10 2010-11 2011-12 ROCE 29.7 26.62 19.33 16.38

ROCE
29.7 30 20 10 0 26.62 19.33 16.38
ROCE

66

We can from the chart that the company ROCE was again reduced year on year. In 200809 the ROCE was 29.7 but till 2011-12 it comes to 16.38. This means company return on capital employed is being reduced. Due to this the company has to work hard to increase the ROCE. Jindal Steel & Power share performance v/s BSE Sensex: Correlation with JSP US $ Pound Euro Yen

0.149951812 -0.343138152 -0.032476925 0.4499598

There is a positive correlation with the company performance with the exchange rate of US$ & Japanese Yen currencies. While there is a negative correlation with the company performance with the pound & euro currencies S) NTPC FII inflow & Outflow Share holding Pattern GOI FII Indian Public Banks & FI Private corp. bodies Mutual fund NRI/OCBs others 2008-09 2009-10 2010-11 2011-12 89.50% 84.50% 84.50% 84.50% 3.60% 2.55% 3.53% 4.02% 2.18% 2.29% 2.04% 1.95% 2.81% 7.35% 6.92% 6.63% 1.21% 1.51% 1.48% 1.77% 0.61% 1.70% 1.40% 1.03% 0.05% 0.06% 0.05% 0.04% 0.04% 0.04% 0.08% 0.06%

67

100.00% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00%

2008-09 2009-10 2010-11 2011-12

As its a Government company, so the Government has maximum percentage of shares of NTPC. So due to this the percentage of NTPC FII will be less. But then also the FII has having inflow high as compared to outflow, which means that company is getting FII inflow from foreign. EPS 2008-09 2009-10 2010-11 2011-12 9.81 10.72 11.34 11.9

EPS

EPS
15 10 5 0 9.81 10.72 11.34 11.9

EPS

We can see from the chart that company EPS has been continuously increasing which means that the company is being performing well & giving good return on EPS.

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 ROCE 2008-09 2009-10 2010-11 2011-12 ROCE 11.77 13.64 12.86 11.43

ROCE
14 13.5 13 12.5 12 11.5 11 10.5 10

13.64 11.77

ROCE 12.86 11.43

2008-09 2009-10 2010-11 2011-12

We can see that ROCE of a company in year 2009-10 increase to around 2% but in the later year in year 2010-11 & 2011-12 the company ROCE was reduced again 1% & 2% which means the com. NTPC share price performance v/s Exchange rate correlation with NTPC US $ Pound Euro Yen There is a negative correlation of the company

-0.090287982 -0.512703602 -0.180002337 -0.115431823

with the exchange rate. This shows there is no

effect of the rupee depreciation against the performance of the company. The company performance is positive as against the weakness of the rupee. The company maintains its performance well in the stock exchange.

69

T) Hero Moto Corp: EPS 2008-09 2009-10 2010-11 2010-12 64.2 111.8 96.5 119.1

EPS

EPS
200 64.2 0 2008-09 2009-10 EPS 2010-11 2011-12 111.8 96.5 119.1 EPS

We can see from the chart in year 2009-10 the EPS was drastically increase as compared to 2008-09 but in the year 2010-11 it is reduced to 96.5 as compared to 2009-10 while in year 2011-12 it again gone up to 119.1 as compared to 2010-11. It shows company is having upward & downward trend of earnings per share. ROCE: 2008-09 2009-10 2010-11 2011-12 51% 76% 62.30% 58.90%

ROCE

ROCE
100% 50% 0% 51% 76% 62.30% 58.90% ROCE ROCE

70

ROCE of the company has been reducing only as compared to year 2009-10. Due to this the company has to work hard to stop the downward trend of ROCE. FII inflow & outflow Hero Moto Corp Promoters MF/UTI FII insurance companies FI/Banks Corporate bodies Indian Public Trust clearing members NRI
60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 2008-09 2009-10 2010-11 2011-12

2008-09 2009-10 2010-11 2011-12 52.21% 54.96% 52.21% 52.21% 2.06% 2.11% 1.15% 1.49% 31.75% 29.96% 32.79% 33.38% 4.00% 4.61% 3.89% 2.62% 0.16% 0.02% 0.12% 1.53% 1.38% 0.47% 1.91% 1.47% 7.64% 7.04% 7.16% 7% 0.61% 0.60% 0.60% 0.00% 0.09% 0.13% 0.06% 0.19% 0.10% 0.10% 0.11% 0.11%

We can from the chart in Hero Moto Corp FII inflow is high. There is a continuous increase of FII in every year. Hero Moto Corp performance VS Exchange rate: Correlation with Hero Moto Corp US $ Pound Euro Yen

-0.602408507 0.252078863 -0.245927467 -0.628916131

71

There is a negative correlation of the company performance with the exchange rate with Dollar, Euro & Yen. This shows as the rupee depreciates against these currencies the company performance is going increasing only. The other reason could be the company exports their products on these countries which help to gain good foreign exchange. But when we see the company performance with the British Pound there is a positive correlation which shows that when rupee depreciates the company performance also depreciates. U) Mahindra & Mahindra EPS 2008-09 2009-10 2010-11 2011-12 51.57 45.08 53.46 53.18

EPS

EPS
55 50 45 40 2008-09 2009-10 EPS 2010-11 2011-12 45.08 EPS 51.57 53.46 53.18

The company EPS has being reduced in the year 2009-10 as compared to year 208-09. But again in the year 2010-11 & 2011-12 company EPS has being increased compared to 2008-09. ROCE 2008-09 2009-10 2010-11 2011-12 ROCE 13.99 27.7 26.96 23.58

72

ROCE
50 0 2008-09 2009-10 2010-11 2011-12 13.99 27.7 26.96 23.58 ROCE

We can see from the chart the company ROCE has being increased in the year 2009-10 as compared to year 2008-09 but it is continue to fall in the year 2010-11 & 2011-12 almost 4%. FII inflow & Outflow Pattern: M& M 2008-09 2009-10 2010-11 2011-12 Promoter & Promoter group 29.20% 26.34% 24.90% 25.18% MF/UTI 2.40% 4.16% 4.96% 3.31% Banks, FI,Insurance Co. & State Govt 23.10% 20.76% 16.25% 14.23% FIIs/Foreign Bodies 24.13% 26.65% 30.56% 35.01% Private corporate bodies 4.29% 7.65% 6.24% 7.45% Indian Public 9.55% 8.69% 10.17% 8.00% NRI/OCB/Foreign National 0.68% 0.58% 0.98% 0.88% Bank of New York 6.65% 5.17% 5.94% 5.94%

40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%

2008-09 2009-10 2010-11 2011-12

73

We can see that there is a continuous inflow of FII in Mahindra & Mahindra Company is very high. This means that company is getting more & more foreign investment.

Mahindra & Mahindra Company Performance with the Exchange rate: Correlation with M & M US $ 0.495920867 Pound 0.437753347 Euro 0.2966549 Yen 0.715228241 There is a positive correlation of the company performance on stock exchange with the exchange rate of the G5 countries. This shows when the rupee depreciates against the G5 countries, the company performance also decreases. V) Hindalco Co. EPS 2008-09 2009-10 2010-11 2011-12 3.21 22.17 12.84 17.74

EPS

EPS
25 20 15 10 5 0 2008-09 2009-10 2010-11 2011-12 3.21 12.84 EPS 22.17 17.74

In year 2008-09 the company EPS was Rs: 3.21 but in the next years company performed well & its help to raise the EPS of the company more & more till 17.74 EPS in year 2011-12.

74

 ROCE 2008-09 2009-10 2010-11 2011-12 ROCE 9 7.46 8.9 6.15

ROCE
10 8 6 4 2 0 2008-09 2009-10 2010-11 2011-12 9 7.46 6.15 ROCE 8.9

We can see that from year 2008-09 the company ROCE is being continuously reduced in the next 3 years. Till 2011-12 the company ROCE was come down to 6.15% from 9%. This means that company return on capital is being reduced. FII inflow Hindalco 2008-09 2009-10 2010-11 2011-12 Promoters 36.09% 32.08% 32.87% 32.06% MF/UTI 2.62% 2.93% 2.48% 2.89% Banks/FI/Govt. 16% 12.73% 10.49% 12.05% FII 10.33% 28.94% 30.91% 26.85% corporates 9.17% 4.11% 4.90% 6.62% individual 13.11% 8.42% 7.68% 8.86% NRI/OCBs 2.53% 2.16% 2.32% 2.27% GDRs 10.15% 8.63% 8.35% 8.40%

75

40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%

2008-09 2009-10 2010-11 2011-12

In year 2009-10 & 2010-11 the company FII has being increased from 2008-09. This shows that company has high FII inflow while in year 2011-12 the company has reduced the investment of FII i.e. in year 2011-12 FII inflow was less & FII outflow was more. Hindalco Performance with exchange rate: Correlation with Hindaalco dollar -0.292942688 pound -0.428499384 euro -0.440256886 yen 0.052166759 There is a negative correlation of company performance with the exchange rate of dollar, pound & euro. When we find the correlation with the Yen there is a positive correlation W) BHEL EPS 2008-09 2009-10 2010-11 2011-12 63.64 88.39 123.66 28.96

EPS

EPS
200 0 63.64 88.39 123.6628.96

76

The company Earnings per Share is being continuously increasing in year 2010-11 & 2009-10 as compared to 2008-09 which shows that company Earnings has being increasing in both the year. While in year 2011-12 the company EPS was drastically reduced to almost 100 Rs. This is not the good sign in the earnings per share for the company. ROCE 2008-09 2009-10 2010-11 2011-12 36.92 41.6 44.27 40.5

ROCE

ROCE
60 40 20 36.92 41.6 44.27 40.5

2008-09

2009-10

2010-11

2011-12

The company ROCE has being increase in year 2009-10 & 2010-11 which shows the company return on capital is high while in year 2011-12 the company ROCE has being reduced as compared to 2010-11 but as compared to year 2008-09 the return on capital is being increased. FII Inflow BHEL President of India MF & UTI Banks, FI, Insurance Co. FII corporate bodies Individuals NRIs trust clearing members 2008-09 2009-10 2010-11 2011-12 67.72% 67.72% 67.72% 67.72% 6.81% 6.71% 7.03% 1.44% 4.40% 6.03% 5.68% 11.40% 14.72% 13.07% 12.91% 13.49% 4.51% 4.18% 4.49% 2.83% 1.62% 1.99% 1.87% 2.69% 0.10% 0.14% 0.13% 0.19% 0.03% 0.03% 0.03% 0.05% 0.09% 0.13% 0.14% 0.19%

77

80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 2008-09 2009-10 2010-11 2011-12

The pattern of FII is almost nearer to each & every year it moves on. This means that the company is getting FII investment at almost decrease of 1% or 2%. BHEL share performance VS Exchange rate: Correlation with BHEL dollar 0.697944713 pound 0.464844176 euro 0.478429386 yen 0.80481033 There is a positive correlation of the company performance with the depreciation of the rupee. This shows that when rupee depreciates against the foreign currency the company share performance on stock exchange also decreases. X) Hindustan Unilever Ltd EPS 2008-09 2009-10 2010-11 2011-12 EPS 11.51 9.92 10.68 12.95

78

EPS
15 10 5 0 2008-09 2009-10 2010-11 2011-12 11.51 9.92 10.68 12.95

EPS

In year 2009-10 & 20110-11 the company EPS has being continuously reducing while comparing to year 2008-09 which means the company earnings has been decreasing. But in the year 2011-12 the company earnings per share is being gone up. ROCE: ROCE 2008-09 2009-10 2010-11 2011-12 118.59 106.78 102.47 93.08

ROCE
150 100 50 0 2008-09 2009-10 ROCE 2010-11 2011-12 118.59

106.78

102.47

93.08 ROCE

The company ROCE has been continuously reducing. This means company returns on the capital employed is being reduced. So the company has to work hard to increase the return which they getting write now.

79

 HUL FII inflow 2008-09 2009-10 2010-11 2011-12 52.06% 52.02% 52.55% 52.50% 4.58% 3.24% 3.01% 1.90% 0.13% 0.40% 0.39% 0.41% 10.40% 10.46% 8.94% 8% 14.35% 14.48% 17.27% 19.43% 2.68% 3.47% 2.58% 3.14% 0.30% 0.38% 0.33% 0.34% 0.01% 0.14% 0.01% 0.01% 15.49% 15.41% 14.92% 14.27%

Promoters MF & UTI FI/banks Insurance co. FII bodies corporate NRI/Foreign bodies directors relatives individuals
60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00%

2008-09 2009-10 2010-11 2011-12

The company has every year increasing the FII investment from foreign countries. This means that the company having huge inflow of FII & less outflow of FII. HUL share performance with the exchange rate: Correlation with BHEL dollar 0.76391169 pound 0.57389771 euro 0.53105159 yen 0.85259502 There is a positive correlation with the company performance & the exchange rate. The maximum of rupee depreciation against foreign currencies with respect to company performance is seen with Yen, because when rupee depreciates against Yen the company performance decreases at 85% which there a huge effect on the performance of the company.

80

Y) ITC EPS 2008-09 2009-10 2010-11 2011-12 EPS 8.82 11.01 6.53 8.05

EPS
20 10 0 2008-09 2009-10 EPS 2010-11 2011-12 8.82 11.01 6.53 8.05 EPS

In the year 2009-10 the EPS was increased to 3 Rs but in the year 2010-11 & 2011-12 was reduced to almost 3 to 5 EPS. This means that the EPS of the company has being reduced. ROCE 2008-09 2009-10 2010-11 2011-12 ROCE 34.09 43 43.51 47.33

ROCE
50 40 30 20 10 0 2008-09 2009-10 2010-11 2011-12 43 34.09 43.51 47.33 ROCE

81

The company ROCE is being continuously increasing which means that the return on capital has been grown up, which shows that company is getting better return on the capital employed. FII inflow & outflow ITC Bank, FI, Insurance Co. & MF FII Foreign Corporate Bodies NRIs & Foreign Nationals Bodies corporate Public & other GDR
40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%

2008-09 36.21% 14.15% 31.45% 0.55% 5.66% 11.59% 0.39%

2009-10 37.14% 13.40% 31.62% 0.55% 5.21% 11.69% 0.39%

2010-11 35.84% 14.04% 31.37% 0.57% 6.44% 11.41% 0.33%

2011-12 34.25% 17.40% 30.87% 0.54% 5.76% 10.87% 0.31%

2008-09 2009-10 2010-11 2011-12

The company FII inflow in year 2009-10 & 2010-11 has being reduced as compared to year 2008-09 which shows that the FII outflow was more than the FII inflow but when we see the year 2011-12 the FII inflow was more as compared to the preceding year, which shows that the company more investment from foreign bodies. ITC Share Performance with the Exchange rate: Correlation with ITC dollar pound euro yen

0.608875315 0.313008421 0.301259758 0.850068294

82

There is a positive correlation between the company performance & the exchange rate. This shows that the rupee depreciates its effects on the performance of the company Z) SBI FII inflow & outflow 2008-09 2009-10 2010-11 2011-12 59.40% 59.40% 59.40% 61.58% 4.08% 4.22% 4.22% 4.81% 0.03% 0.11% 0.15% 0.21% 11.42% 12.22% 12.52% 12.09% 13.99% 12.80% 10.90% 8.70% 2.45% 2.42% 3.45% 3.60% 5.24% 5.66% 6.02% 6.06% 0.08% 0.14% 0.16% 0.20% 0.05% 0.06% 0.09% 0.06% 0.11% 0.12% 0.14% 0.16% 3.15% 2.85% 2.95% 2.53%

Central & state govt. MF/UTI FI Insurance Companies FII Corporate bodies Individual NRI trust clearing members DRs

70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 2008-09 2009-10 2010-11 2011-12

We can clearly see that the investment from foreign companies in SBI is continuously has being reducing. There is trend of FII outflow is more but less FII inflow. EPS 2008-09 2009-10 2010-11 2011-12 EPS 267.87 238.23 176.35 189.33
83

EPS
300 250 200 150 100 50 0 2008-09 2009-10 2010-11 2011-12 267.87 238.23 176.35 189.33 EPS

We can here also see that the bank Earnings per share is being also reducing also in each consecutive year which means that the companys earnings has been drastically reducing in each SBI share performance with the exchange rate: correlation with SBI dollar pound euro yen

0.152709 -0.31009 -0.16336 0.407941

There is a positive correlation between the SBI share price & exchange rate of dollar & euro at 15% & 40%. This shows that when rupee depreciates company share price also depreciates to 15% against dollar & 40% against yen. But when we see against pound & euro the company share price increases to 31% & 16% which shows that there is a negative correlation between rupee depreciation on pound & euro with compared to company performance on stock exchange& every year. AA) Maruti Suzuki India LTD EPS EPS 2008-09 2009-10 2010-11 2011-12 42.63 88.09 79.86 56.54

84

EPS
100 42.63 50 0 2008-09 2009-10 2010-11 88.09 79.86 56.54

2011-12

We can see the company EPS has being increasing in year 2009-10, 2010-11 & 2011-12 as compared to year 2008-09. But when we compared with the year 2009-10 the company earnings per share has being reducing for year 2010-11 & 2011-12. ROCE 2008-09 2009-10 2010-11 2011-12 ROCE 17.26 27.94 21.19 13.02

ROCE
30 25 20 15 10 5 0 2008-09 2009-10 2010-11 2011-12 17.26 27.94 21.19 13.02

ROCE

Again company has been not performing well accept in year 2009-10 the company has being giving downward trend to the earnings of the ROCE.

85

 FII inflow & Outflow Maruti Suzuki Promoter group mutual fund/ UTI financial institutions/ bank FII corporate bodies Individuals clearing member, NRI & OCB 2008-09 2009-10 2010-11 2011-12 54.21% 54.21% 54.21% 54.21% 3.09% 2.68% 3.09% 2.85% 18.40% 13.93% 14.84% 12.95% 19.36% 21.12% 19.23% 21.45% 2.28% 6% 5.85% 5.83% 2.44% 2.25% 2.43% 2.35% 0.22% 0.17% 0.35% 0.36%

60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 2008-09 2009-10 2010-11 2011-12

We can see from the chart the company FII inflow is more than the FII outflow which means that the company has more foreign investment as a FII. Maruti Suzuki India V/S Exchnage rate Correlation with MSI dollar pound euro yen

0.3455585 -0.164336 0.174993 0.478257

There is a positive correlation of MSI with the exchange rate of Dollar, Euro & Yen which shows that when rupee depreciates against these currencies company performance also decreases. But the company performance is increased by 16% against the pound
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AB) Bharti Airtel ROCE 2008-09 2009-10 2010-11 2011-12 ROCE 28.4 23.86 15.97 12.67

ROCE
40 20 0 2008-09 2009-10 2010-11 28.4 23.86 15.97 12.67

2011-12

Company ROCE has been continuously decreasing in each consecutive year. This shows that the company returns on capital employed has being reduced which is a not a good sign for the company performance. EPS 2008-09 2009-10 2010-11 2011-12 EPS 42.38 24.66 18.89 5.84

EPS
50 0 2008-09 2009-10 2010-11 42.38 24.66 18.89 5.84

2011-12

Company performance on EPS has been also decreasing, which shows that company earnings per share being reduced on each & every year. This means the company earnings is reduced & the company has to work hard on to increase its earnings per share.
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 FII inflow Share holding pattern

Promoters Mutual Fund / UTI Financial institutions/ Banks Insurance Companies FII Corporate bodies Individuals NCR/Trust/ Clearing Members 2008-09 2009-10 2010-11 2011-12 68.20% 68.12% 68.29% 68.50% 3.69% 3.57% 3.57% 3.83% 0.11% 0.12% 0.09% 0.06% 5.05% 4.06% 5.05% 4.49% 17.30% 17.50% 17.36% 16.93% 3.62% 4.60% 3.71% 4.56% 1.80% 1.19% 1.69% 1.45% 0.23% 0.84% 0.24% 0.18%

80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00%

2008-09 2009-10 2010-11 2011-12

We can see that the FII performance is stable as on each & every year pass on. There is equal inflow & outflow of investment from foreign countries. So we can say there is a equal & outflow in the Bharti Airtel Company. Bharti Airtel share Performance with the exchange rate: correlation with Airtel dollar pound euro yen

0.188031 -0.16616 0.126415 0.492484

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There is a positive correlation of the company performance against the dollar, euro & yen which shows company performance goes downward when rupee depreciates but the company performance goes up against the pound as there is a negative correlation between rupee depreciation against pound & company performance goes up. AC) HDFC Corporation: EPS EPS 2008-09 2009-10 2010-11 2011-12 63.11 91.57 25.26 30.4

EPS
100 0 2008-09 2009-10

63.11

91.57 25.26 30.4

2010-11

2011-12

The company EPS was increase in year 2009-10 but it was reduced in the year 2010-11 & 201112. There is an almost reduction of EPS on net profit of Rs: 65 per share in year 2010-11 & Rs 60 per share in year 2011-12 as compared to year 2009-10. ROCE 2008-09 2009-10 2010-11 2011-12 10.54 9.58 9.04 14.35

ROCE

ROCE
14.35
15 10 5 0 2008-09 2009-10 2010-11 2011-12

10.54

9.58

9.04

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The company ROCE is being reduced in year 2009-10 & 2010-11 as compared to year 2008-09 which means that company return on capital employed is being reduced. But when we see about in the year 2011-12 the company ROCE was increased to almost 4% - 5% which means that in year 2011-12 company returns has being increased as compared to all other preceding year. FII Inflow & Outflow pattern

Share Holding pattern 2008-09 2009-10 2011-12 2011-12 MF/UTI 3.65% 3.75% 2.81% 3.28% FI/Banks 0.57% 1.34% 1.74% 2.66% Insurance Companies 8.03% 9.87% 9.13% 9.41% FII 59.92% 57.78% 58.71% 65.81% FDI- Foreign institutions 15.03% 15% 15.06% 4.77% corporate bodies 1.48% 1.51% 1.77% 2.93% individual 10.23% 9.93% 10.02% 9.75% NRI/CL/TRUST 0.58% 0.31% 0.32% 0.93% Director & their relatives 0.51% 0.51% 0.44% 0.46%
70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 2008-09 2009-10 2011-12 2011-12

We can see from the chart that in HDFC Corporation the company major investment is through the FII & FDI from foreign institutions. This shows they have total 60% - 70% share of HDFC Corporation. This means that company has huge inflow of FII investment & less outflow of FII investment.

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 HDFC Corporation share performance with the exchange rate: Correlation with HDFC Corp us$ Pound Euro yen

0.463556034 0.180082533 0.188751729 0.770797201

There is a positive correlation of the company performance with the exchange rate. This shows that when rupee depreciates against the currencies the company performance also depreciates due to this there is a positive correlation AD) Dr. Reddys Laboratory FII inflow & Outflow Share holding Pattern promoters IFI Banks MF FII NRI ADRs/ Foreign Nationals Indian Public & Corporates 2008-09 2009-10 2010-11 2011-12 26.40% 25.77% 25.65% 25.61% 13.41% 11.53% 8.19% 6.86% 0.19% 0.03% 0.24% 0.04% 6.57% 6.47% 5.58% 6.52% 22.16% 27.27% 25.90% 27.42% 1.86% 1.73% 1.63% 1.48% 15.74% 14.54% 18.74% 16.82% 13.67% 12.66% 14.07% 15.25%

30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 2008-09 2009-10 2010-11 2011-12

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While seeing the chart we can see that the company is getting more & more FII inflow & it shows that company FII investment is high. EPS EPS 2008-09 2009-10 2010-11 2011-12 -54.48 20.83 59.06 76.76

EPS
100 50 0 -50 -100 2008-09 -54.48 2009-10 2010-11 20.83 59.06 76.76

2011-12

We can see from the chart that in the year 2008-09 the company EPS was drastically showing negative results of earnings per share. But in the later years the company performance has been good to make & gives positive earnings per share & in the each year it goes on increasing only. Dr. Reddys Lab Share performance with the exchange rate Correlation with Dr. Reddy US $ Pound Yen Euro

0.463556034 0.180082533 0.770797201 0.188751729

There is a positive correlation between the Dr. Reddys Lab & Exchange rate which rupee depreciate company performance on stock exchange also decreases.

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FINDINGS
When the Rupee Depreciates against the US$, Pound Sterling & Euro there is a negative correlation with these exchange rate with BSE Sensex index, while there is a positive correlation between the Japanese Yen & BSE Sensex. In this project work I found that the companies who are exporting their products are gain from the depreciation of the rupee. They are mostly IT-Sector Companies because when the rupee depreciates they are in a position to sell more products at the rate which is prevailing on that day exchange rate. There is a low performance for the power generation company because the rupee is

depreciating as against the foreign currencies due to which the companies has to pay more & more money for the purchase of raw material like crude oil & also the latest technology for which the company has to imports theses raw material from the foreign countries. The FII investment in the companies is good but accepts for the year 2008-09 where the companies FII investment is being at a negative stage because of the great depreciation comes in America in January 21st, 2008. While we see the working of the oil marketing companies they also have to suffer loss or downward return because of rupee depreciates they have to import crude oil in more quantity and due to this the oil marketing companies has to pay amount in dollar, and thus the rupee depreciates each & every day, the company has to buy pay more amount in terms of dollar for the less quantity. The Pharmaceutical companies are performing well because they are selling more generics in the foreign countries & maximum revenue they are getting from selling the generics in the foreign countries. The rupee depreciates shows good signs for these companies as they have lots of international generics which help them to generate lots of revenue from the foreign countries. The Auto sector companies perform well because the companies are exporting more & more two wheelers & four wheelers vehicle in the foreign countries.

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 For the Telecom sector company they are also benefitted because Telecom sector companies business are being carried out globally, so they get lots of customer base and because of their good service it helps the companies to perform well in the country. While banking sector also perform well because as the rupee depreciation, there is more & more exchange of foreign currency which helps the company to make more & more profit. There is a positive correlation between the exchange rate and the Sensex. The R-square statistics shows that BSE Sensex is dependent on US Dollar at 9.44% which shows that the rupee depreciation has only this much effect on Sensex. The R-square statistics shows that BSE Sensex is dependent on British Pound at 0.3% effect on the Sensex. The R-square statistics shows that BSE Sensex is dependent on European Euro at 1.55% effect on the Sensex when rupee depreciates against the Euro. The R-square statistics shows that BSE Sensex is dependent on Japanese Yen at 9% effect on Sensex which shows only 9% effect is seen on the Sensex.

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SUGGESTIONS The
Ravi Investor should give their investor the idea about to invest in IT-Sector

companies & Banking sector. The reason is that when the rupee depreciates the IT companies are more beneficiaries of this. As the rupee depreciates they will import more & more quantity which will give them a better chance to earn more in foreign exchange & to increase their profit margin.

They can also give the idea to invest the investor money on Pharmaceutical companies.
Because Pharmaceutical companies are earnings more & more revenue by selling generics in the foreign countries.

The banking sector shares for companies are also good as this will provide more gain to
the investor who invests their money on the banking sector.

The Ravi investor can also guide his investor to invest their money on the companies
where there is a high percentage of FII inflow for example HDFC Corporation, Dr. Reddy Lab, TCS, Infosys, Wipro etc. because they are the companies who are performing well in the stock market.

The Ravi investor should not give the suggestion of investing in the Power sector & steel
manufacturing companies.

The investor to invest in the bike; auto rickshaw & car segment because they are also
exporting the final product to the foreign countries in the foreign currencies which helps them to generate more revenue in terms of foreign currency.

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CONCLUSION
The main objective of the study is to find the impact of rupee depreciation on the Indian stock market. To test this we have employed methodology of Karl Pearson coefficient correlation & regression analysis. Correlation was used d to know there was positive impact or negative impact & regression analysis was find the extent of impact of rupee depreciation on BSE Sensex. According to data analysis & findings we can conclude that there is no significant impact on the Sensex when rupee depreciates. But there is a strongly positive & negative impact of rupee depreciation on the companies listed on Sensex. After doing this research work we found that when the rupee depreciates it benefits to the companies which are of IT sector, Pharmaceutical Companies & also to the banking sector. This leads to the companies to perform in a good way and to earn more & more revenue from its operations carried out day to day nationally or internationally. The companies those who are in power sector & oil sector they are not performing well there returns & earnings are being decreasing due to depreciation of rupee. Because of depreciation of rupee they have to pay more dollars for purchase of crude oil which makes their income from operation less. The companies those who are in bike & car segment they are also performing well because they are importing technology from foreign and make use of that technology on making bike or car, after that the company sell the finals products in foreign countries & in a foreign currency which helps the company to earn more revenue as rupee depreciates. While we talk about banking sector, they are the biggest gainers of the rupee depreciation because the individual who are travelling foreign countries, so they required foreign money which they will get by exchanging of foreign currency with banks which helps the bank to earn more money as rupee depreciates & foreign currency is becoming stronger, they have to pay more money when the individual goes for trip in foreign countries.

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 The pharmaceutical companies are also performing well because whatever generics they are making almost 70% - 80% are selling that generics on the foreign countries which makes the company to earn more from the operation carried out by the companies.

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BIBLIOGRAPHY
Website: www.moneycontrol.com / ITC www.moneycontrl.com/ Dr. Reddys LAB www.moneycontrol.com /Bajaj Auto www.moneycontrol.com./ L& T www.rbi.org.in/ Exchange rate study www.sebi.com/ FII investment www.in.finance.yahoo.com/ BSE share price www.in.finance.yahoo.com/ ITC share price www.in.finance.yahoo.com/ HUL share price www.in.finance.yahoo.com/ Hindalco share price www.in.finance.yahoo.com / Bajaj Auto share price www.in.financeyahoo.com / coal India share price www.in.finance.yahoo.com / GAIL share price wwww.in.finance.yahoo.com / TCS share price www.in.fiannce.yahooo.com / Tata Motor share price www.in.finance.yahoo.com/ Tata Power share price www.in.finance.yahoo.com /Tata steel share price www.in.finance.yahoo.com /Infosys share price www.in.finance.yahoo.com / Wipro share price
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www.in.finance.yahoo.com / Sun Pharma share price www.in.finance.yahoo.com / Dr. Reddys share price www.in.finance.yahoo.com / Bharti Airtel share price www.in.finance.yahoo.com / ONGC share price www.infinance.yahoo.com / BHEL share price www.in.finance.yahoo.com / CIPLA share price www.in.finance.yahoo.com / Reliance share price www.in.finance.yahoo.com/ JSPL share price www.in.finance.yahoo.com / Sterlite industries share price www.in.finance.yahoo.com / HDFC bank share price www.in.finance.yahoo.com / ICICI Bank share price www.in.finance.yahoo.com /SBI share price www.in.finance.yahoo.com / HDFC Corporation share price www.in.finance.yahoo.com / NTPC share price www.in.finance.yahoo.com / Hero Moto Corp share price www.in.finance.yahoo.com/ M & M share price www.in.finance.yahoo.com /ITC share price www.in.finance.yahoo.com /Maruti Suzuki share price

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Journals
1) Manjinder Kaur, Sharanjit S. DHILLON year 2010 on Determinants of Foreign Institutional Investors Investment in India on Eurasian Journal of Business & Economics 2010, 3 (6), 57-70 2) By Anubhav Shrivastavav year 2013- influence of FII flows on Indian Stock Market on GYANPRATHA-ACCMAN Journal of Management, Volume 5, sand Issue 1. 3) Determinants of Exchange rate in India BY: Mita H. Suthar, H.L. Institute of Commerce April 21, 2008

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GLOSSARY

FII: An investor or investment fund that is from or registered in a country outside of

the one in which it is currently investing. Institutional investors include hedge funds, insurance companies, pension funds and mutual funds.

Sensex:

An abbreviation of the Bombay Exchange Sensitive Index (Sensex) - the benchmark index of the Bombay Stock Exchange (BSE). It is composed of 30 of the largest and most actively-traded stocks on the BSE. The index is calculated based on a free-float capitalization method when weighting the effect of a company on the index. This is a variation of the market cap method, but instead of using a company's outstanding shares it uses its float, or shares that are readily available for trading. The free-float method, therefore, does not include restricted stocks, such as those held by company insiders that can't be readily sold. To find the free-float capitalization of a company, first find its market cap (number of outstanding shares x share price) then multiply its free-float factor. The free-float factor is determined by the percentage of floated shares to outstanding. For example, if a company has a float of 10 million shares and outstanding shares of 12 million, the percent of float to outstanding is 83%. A company with an 83% free float falls in the 80-85% free-float factor, or 0.85, which is then multiplied by its market cap (e.g., $120 million (12 million shares x .$10/share) x 0.85 = $102 million free-float capitalization).

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