FII’s INFLUENCE ON
SENSEX OVER THE PERIOD 2000-2010
AT
HEDGE EQUITIES, ERNAKULAM
A project report submitted in partial fulfillment of
requirement for the award of degree of
Master of Business Administration of Kerala University
Submitted by
MUKESHKUMAR M.D
Under the guidance of
Mrs Suma S.R
Faculty
IMK Adoor
INSTITUTE OF MANAGEMENT IN KERALA
ADOOR
MARCH 2011
DECLARATION
I MUKESHKUMAR M. D, hereby declare that this report entitled “ FII’s
INFLUENCE ON SENSEX OVER THE PERIOD 2000-2010 AT HEDGE
EQUITIES, ERNAKULAM ” submitted by me for the award of degree of Master
Of Business Administration of the University of Kerala is my own work. The
report has not been submitted for the award of any other degree of this University or
any other University
I also declare that this report has not been submitted to any other
university/institute and has been completed with my true knowledge.
MUKESHKUMAR MD
Reg No 0905323
PLACE:
DATE:
CERTIFICATE
This is to certify that the project report entitled “ FII’s INFLUENCE ON
SENSEX OVER THE PERIOD 2000-2010 AT HEDGE EQUITIES,
ERNAKULAM ” submitted here is a bonafide record of the work done by Mr.
MUKESHKUMAR M.D (Reg No: 0905323) under my guidance in partial
fulfillment of the requirement for the award of Degree in MASTER OF BUSINESS
ADMINISTRATION of the UNIVERSITY OF KERALA and this work has not
been submitted by anyone else for the award of any other degree, diploma or titled of
recognition earlier.
Mrs SUMA S.R Mr. MANOJKRISHNAN.C.G
FACULTY CO-
ORDINATOR
IMK ADOOR IMK ADOOR
ACKNOWLEDGEMENT
This report has been made fruitful with the help and co-operation of various
people to whom I wish to express my gratitude.
First of all, I thank Mr Dr K.S Chandrasekar, Head of the department of
Institute of Management in Kerala and our Co-coordinator Mr. Manoj Krishnan
C.G. who had given me permission to do this project.
I am thankful to Mr. George, GM, Hedge Equities, Kochi for giving me this
opportunity to undertake my project in this esteemed organization and Mr. N.P
Rajive, Dean, Hedge school of applied economics, Kochi who guided me all through
the course of my project. I would also like to thank to Mr. Binoy D Panicker, Senior
Manager Trainee, Hedge School of Applied Economics Kochi for his support and
valuable suggestion
.
I also take this opportunity to express my sincere gratitude and indebtedness
to my project guide Mrs. Suma S.R, faculty of IMK Adoor, whose encouragement
and guidance helped me a lot in bringing out this project.
I thank God Almighty for showering me with abundant grace for the
successful completion of the project.
Last but not the least with great pleasure I hereby express my sincere thanks
to my most loving parents.
MUKESHKUMAR MD
LIST OF CONTENTS
Sl. No. Description Page No
1 Introduction 1-4
1.1 Introduction to the study 2
1.2 Objective of the study 3
1.3 Scope of the study 3
1.4 Methodology of the study 3
1.5 Limitation 4
1.6 Chapterisation 4
2 Industry profile- Brokerage Industry 5-10
3 Company profile – Hedge Equities 11-21
3.1 About the company 12
3.2 Services offered 14
3.3 Functional departments 18
4 Theoretical framework 22-38
4.1 Stock Exchanges – BSE & NSE 23
4.2 Foreign Institutional Investors 32
5 Analysis and Interpretation 39-68
5.1 Performance of Sensex 41
5.2 FII’s net inflow v/s Sensex return 44
5.3 Number of FII’s registered v/s Sensex return 56
5.4 Coefficient of Correlation and Regression analysis 58
between FII’s investment & sensex return
5.5 Trend analysis of FII’s investment 64
6 Finding , conclusion & suggestion 69-72
Bibliography
LIST OF TABLES
TABLE TABLE PAGE NO
NO
4.1 LIST OF BSE SENSEX COMPANIES 26
4.2 INTERNATIONAL STOCK EXCHANGES 31
5.1 PERFORMANCE OF SENSEX 1991-2010 41
5.2 SENSEX RETURN FROM 2000-2010 44
5.3 FII’s NET INFLOW FROM 2000-2010 46
5.4 FII’s NET INFLOW V/S SENSEX RETURN 48
5.5 SENSEX RETURN 2010 50
5.6 FII NET INFLOW 52
5.7 FII INFLOW V/S SENSEX RETURN 54
5.8 NUMBER OF FII VS SENSEX RETURN 56
5.9 SENSEX FLUCTUATION 58
5.10 CORRELATION 59
5.11 CORRELATION 2010 62
5.12 CURRENT TREND OF FII’s INVESTMENT 64
5. 13 ANALYSIS OF TREND 66
5.14 TREND ANALYSIS-FUTURE 67
LIST OF CHARTS
CHAR CHART NAME PAGE
T NO NO
5.1 SENSEX 1991-2010 42
5.2 SENSEX RETURN 2000-10 45
5.3 FII NET INFLOW 2000-10 47
5.4 FII INFLOW 2000-2010 V/S SENSEX RETURN 49
5.5 SENSEX RETURN 2010 51
5.6 FII NET INFLOW 2010 53
5.7 SENSEX RFTURN V/S NET INFLOW 2010 55
5.8 NUMBER OF FII VS SENSEX RETURN 56
5.9 TREND ANALYSIS 68
