Guru ji121

A Study On Capital Returns Between Automobiles And Banking Sectors In India
Community Institute of Management Studies, Bangalore 1
CHAPTER-1
INTRODUCTION
1.1 Capital Returns
Return of capital (ROC) refers to principal payments back to "capital owners"
(shareholders, partners, unit holders) that exceed the growth (net income/taxable income)
of a business or investment.
Average returns are the simple mathematical average of a series of returns
generated over a period of time. An average return is calculated the same way a simple
average is calculated for any set of numbers; the numbers are added together into a single
sum, and then the sum is divided by the count of the numbers in the set. For example,
suppose an investment had returned the following annual returns over a period of five full
years: 10%, 15%, 10%, 0% and 5%. To calculate the average return for the investment over
this five-year period, the five annual returns would be added together and then divided by
five. This produces an annual average returns of 8%.
Average returns can be defined very broadly or more narrowly. The average return
for the S&P 500 will differ from the average return for technology stocks. Likewise, the
average return for the total bond market will differ from the average return on U.S.
Treasury notes. The time period under consideration also influences average returns. For
example, while the stock returned an average of 11.31% from 1928 through 2010. It
returned an average of 3.54% from 2001 to 2010.
Index investing is a form of passive investing that aims to generate the same
rate of return as an underlying market index, no matter how low or how high that return is.
Investors that use index investing seek to replicate the performance of a specific index -
generally an equity or fixed-income index - by purchasing shares of an investment vehicle
such as index funds or exchange-traded funds that closely track the performance of these
indexes.

Proponents of index investing eschew active investment management because they
believe that it is impossible to "beat the market" once trading costs and taxes are taken into
account. As index investing is relatively passive, index funds usually have lower
management fees and expenses than actively managed funds. Lower trading activity may
also result in more favorable taxation for index funds as compared with actively managed
funds.
1.2 INTRODUCTION ABOUT INDUSTRY/COMPANY
1.2.1 Automobile Sector
The automotive industry in India is one of the largest automotive markets in the
world. It was previously one of the fastest growing markets globally, but it is currently
experiencing flat or negative growth rates.
The report by CRISIL (2013) says that automobile industry is expected to grow at
an increasing pace after looking at the past performances in years and also with the help of
the data analysis. But there are concerns arising due to the increasing prices of the fuels
which could hamper the growth and this presents the uncertainty. Automobile is anything
that has an engine and runs on wheels and facilitates travel on the road. Over the years,
automobiles have been used and evolved in order to help in road travel. It has helped people
in reducing the time and place utility and enabled thing that were once impossibility. Roads
have the biggest network than any kind of transportation and this is one reason why the use
of automobiles for road has been increasing. Indian stock market had witnessed the highest
benchmark in 2008 but after that due to global crisis i.e. U.S. Market crash, FII started
withdrawing the funds which led the market crashed to historical low. In this study an
attempt has been made to study the performance of selected leading auto sector stocks in
the Indian capital market since year 2009 to year 2013 to find out the health and
performance of Indian automobile sector.

1.2.1.1 Ashok Leyland-
The 2nd largest manufacturer of commercial vehicles in India, the 4th largest
manufacturer of buses in the world and the 16th largest manufacturer of trucks globally.
During the year under review, Ashok Leyland witnessed a modest recovery in the Indian
economy, enabling the Medium & Heavy Commercial Vehicle (M&HCV) industry to
signal an uptrend after two years of down cycle. Whilst overall commercial vehicle
volumes declined by 2.8% over the previous year, the M&HCV segment volumes
increased by 16%. Your Company improved its market share from 26.1% to 28.6% in the
M&HCV segment, facilitated by appropriate product mix in the growth segments, a
sustained focus on meeting customer requirements and initiatives in network expansion.
M&HCV export volumes grew by 31.7% to 11,218 units from 8,511 units last year,
enabled by growth in target export markets.
1.2.1.2 Eicher Motors
Incorporated in 1982, Eicher Motors Limited is the flagship company of the Eicher
Group in India and a leading player of the Indian automobile industry. Eicher company
motorcycle business - Royal Enfield - enjoys high credibility and has seen phenomenal
growth over the years. This company focused marketing efforts, improved product quality
and expanded distribution network have enabled the brand to expand its reach to a much
larger customer base. Eicher Motors has set its goal to be a leader in the global mid-size
motorcycle market. In order to achieve this goal, Eicher Motors had invested in increasing
manufacturing capacity, strengthening supply chain, developing product development
infrastructure and expanding distribution network. The company had invested in all these
areas to seize the significant opportunities for growth that it believes lie in India and
international markets.

1.2.1.3 Hind Motors
Hindustan Motors Mfg. Co. is one of the leading Electric Motors Manufacturers in
India having ISO 9001 Certification. They have an experience of over more than 28 years
in Design, Development and Manufacturing of Electric Motors. Hindustan Motor
Manufacturing Co. caters the need of Machine Tools, Blowers and Fans, Air-Conditioners,
Compressors, Material Handling Equipment, Cranes and Hoist, Textile Machinery,
Cement Plant, Pharmaceutical Machinery, Packaging Machinery, Construction
Equipment, General Engineering Applications and wide range of Applications. As the
accumulated losses of the company at the end of the financial year ended on Sep, 2013
exceeded its entire net worth, the company has made reference to the board of industrial
and financial reconstruction (BIFR) under sec-15 of the Sick Industrial Companies (Special
Provision) Act, 1985.The reference has been registered by BIFR and proceedings have
started.
1.2.1.4 Tata Motors
Tata Motors Limited is the largest manufacturer in Indian automotive industry. It
is the leader in commercial vehicles, and among the top in passenger vehicles. Tata Motors
Limited is India's largest automobile company, with consolidated revenues of INR 2,
62,796 crores (USD 42.04 billion) in 2014-15. It is the leader in commercial vehicles in
each segment, and among the top in passenger vehicles with winning products in the
compact, midsize car and utility vehicle segments. The Company is focused on growth and
achieving profitability through a superior new product pipeline along with a renewed
commitment to enhance quality and customer service and reduce costs. During the year,
the Company had launched Zest, Bolt, and Ultra Truck which has received an encouraging
response from the customers. As a part of the Horizonext strategy, the company is
committed to introduce new, modified and refreshed products which will improve the
Company's revenue. Investment in right products and vehicle platform are being made to
ensure a competitive pipeline for the future. Together with forward looking Product
strategy, the company is also focusing extensively in right sizing the business and

operational improvement through various strategic projects for operational excellence and
cost cutting initiatives
1.2.1.5 Isuzu Motors
Isuzu is filling a significant role in the world as a manufacturer of commercial
vehicles, light commercial vehicles and diesel engines. Isuzu's sophisticated technological
strength and various fruits are expected to meet further social demands and produce good
prospects for the future. Isuzu Motors India Private Limited), a subsidiary of Isuzu Motors
Limited, Japan was established in August 2012 in India having its headquarters in Chennai.
Isuzu Motors India currently sells its range of Isuzu D-Max pick-up trucks in four variants.
Single Cab Flat Deck, Space Cab Flat Deck, Single Cab Chassis and Space Cab Arch
Deck. Isuzu also sells the MU-7, a large sized Sports Utility Vehicle (SUV) in India. Isuzu
recently launched the automatic transmission variant in addition to its Manual transmission
variant. Both vehicle models are available through Isuzu's exclusive dealer outlets.
1.2.2 Banking Sector
According to the Reserve Bank of India (RBI), the banking sector in India is sound,
adequately capitalized and well-regulated. Indian financial and economic conditions are
much better than in many other countries of the world. Credit, market and liquidity risk
studies show that Indian banks are generally resilient and have withstood the global
downturn well. With a sense of optimism slowly creeping in, the banking industry expects
that 2015 will bring better growth prospects. This optimism stems from factors such as the
Government working hard to revitalize the industrial growth in the country and the RBI
initiating a number of measures that would go a long way in helping the banks to
restructure. The recent announcements of RBI, it is felt, are a clear pointer to the future of
the restructured domestic banking industry
The Indian banking sector is fragmented, with 46 commercial banks jostling for business
with dozens of foreign banks as well as rural and co-operative lenders. State banks control
80 percent of the market, leaving relatively small shares for private rivals.

The growth in the Indian Banking Industry has been more qualitative than
quantitative and it is expected to remain the same in the coming years. Based on the
projections made in the "India Vision 2020" prepared by the Planning Commission and the
Draft 10th Plan, the report forecasts that the pace of expansion in the balance-sheets of
banks is likely to decelerate. The total assets of all scheduled commercial banks by end-
March 2010 is estimated at Rs 40, 90,000 Crores. That will comprise about 65 per cent of
GDP at current market prices as compared to 67 per cent in 2002-03. Bank assets are
expected to grow at an annual composite rate of 13.4 per cent during the rest of the decade
as against the growth rate of 16.7 per cent that existed between 1994-95 and 2002-03. It is
expected that there will be large additions to the capital base and reserves on the liability
side.
The industry is currently in a transition phase. On the one hand, the PSBs, which
are the mainstay of the Indian Banking system are in the process of shedding their flab in
terms of excessive manpower, excessive non-Performing Assets (NPAs) and excessive
governmental equity, while on the other hand the private sector banks are consolidating
themselves through mergers and acquisitions.
1.2.2.1 Bank of Baroda
Bank of Baroda is one of the oldest bank in India and the fourth largest commercial
public sector bank in india.in terms of net profit and total business. Headquartered in
Vadodara, Gujarat, the Bank of Baroda offers a wide range of banking products and
services including credit cards, consumer banking, corporate banking, finance and
insurance, Investment banking, mortgage loans, private banking, private equity and wealth
management. It is the fourth largest lender with a net profit growth of 32% and total
business growth of 24%. The bank does most of its business in the non-urban market where
the competition is low but the risks are comparatively higher.
1.2.2.2 Punjab National Bank
Punjab National Bank, popularly called P.N.B. initially started its business on 12th
April of the year 1895. With their mission to provide banking services to the un-banked,

they aim to be the leading player in global banking. Over the time, they have become a
known name, especially in the Indo-Gangetic plains. The huge network of this bank
includes over 5, 100 offices, which include 5 overseas branches and more than 60 million
customers. This bank has continued to maintain their leadership position for its strong
fundamentals, superior brand image as well as huge franchise value.
1.2.2.3 Syndicate Bank
Syndicate Bank is one of the oldest and major commercial banks of India. It was
founded by T M A Pai, Upendra Pai and Vaman Kudva. At the time of its establishment,
the bank was known as Canara Industrial and Banking Syndicate Limited. The Bank is well
equipped to meet the challenges of the 21st century in the areas of information technology,
knowledge and competition. A comprehensive IT plan is being put in place and the skills
and knowledge of the Bank's personnel are being upgraded through a variety of training
programmes to promote customer delight in every sphere of its activity.
1.2.2.4 Union Bank of India
Union Bank of India is one of the largest government-owned banks of India (the
government owns 60.13% of its share capital). It is listed on the Forbes 2000, and has assets
of USD 13.45 billion. Strategic approach towards balanced growth, profitability and
proactive risk management has helped your Bank in achieving the targeted growth, thereby
strengthening the Bank's business base for a more profitable growth in future the total
income of the Bank increased by 10.7 per cent to Rs. 35,607 crores during the financial
year. The interest income grew by 9.3 per cent to Rs. 32,084 crores and the interest income
on investments grew by 5.5 per cent.
1.2.2.5 Bank of Maharashtra
Bank of Maharashtra is a major public sector bank in India. Government of India
holds 81.2% of the total shares. Bank of Maharashtra has established two Joint Ventures
to fulfill its other commitments towards the general public and society. These Joint
Ventures are M-SETI and Mahabank Info Centre. Mahabank Self-Employment Training
Institute (M-SETI) is an effort initiated by Mahabank Agricultural Research & Rural

Development Fund (MARDEF), a trust run by Bank of Maharashtra receiving help from
National Bank for Agriculture and Rural Development (NABARD). The institute runs
various self-employment oriented training courses for the rural unemployed youth from the
districts of Pune, Kolhapur, Satara, Sangli, Nashik, Ahmednagar, Jalgaon, Dhule and
Nandurbar.

CHAPTER 2
RESEARCH DESIGN
2.1 Title of the study
A study of capital returns between Automobiles and Banking sector in India.
2.2 Statement of problem
To know the capital appreciation of certain selected equity shares in automobile
and banking sector in Indian Context.
2.3 Need and relevance of the study
The study covers the importance of capital appreciation of securities in Indian
context. The banking and automobiles sector are the major sectors in stock market.
The investor prefer to invest in such sector should get maximum return with
minimum period of time.
2.4 Objectives of the study
 To identify the factor affecting the stock market.
 To know the return and average return of the securities.
 To find out the average return on monthly basis.
 To recommend the securities on basis of average return.
 To evaluate and analyze the growth and trends of the automobile sector and banking
sector.

 To analyze and compare the performance of the index securities of the automobiles
and banking sectors.
 To find out the extent of relationships between automobile sector and banking
sector index with the market index.
2.5 Scope of the study
The geographical area of the study was covered the NSE of India The study covers
for the period of one year from 1-July 2014 to 30- June-2015.
The research will help in knowing about the trends in the values of the stock prices
of the ten major companies in Automobiles and Banking sector in India. It will thus be
giving knowledge to the readers of the research about the direction of these companies’
shares. The research will also be giving information and inferences as to how the prices of
these companies changes and how these companies are different from each other. Thus a
helper to those who are going to risk their money at the hands of these automobile and
banking sector. The trends of the companies will also be compared to the sectors as a whole
and try to draw anything that would help in understanding this sectors better.
2.6 Limitations of the study
 The study is on past performance of stocks, and the data, since secondary suffers
from the limitations of secondary data.
 The study covers only two sectors of stock market on which only top 5 companies
have been taken for the analysis.
 Market forces are influenced by a number of factors which cannot be quantified
and thus the research is limited to the numbers available.
 Only the one year has been taken for the study.

2.7 Methodology of the study:
The present study is descriptive study. The analysis is based on Secondary data
collected from various organizational databases, websites, newspapers and other necessary
official records, books & magazines. Monthly closing prices have been taken for technical
analysis purpose from July 1st
2014 to June 30th
2015. Statistical measures like mean have
been used to find out the conclusion. Besides Tables & Charts are used to present and
analyze data. The aim of this research is to know the financial performance of the
companies and the industry as a whole. Stock market has been the focus of study for many
of the researches and this research based on the secondary data would try and find out the
trends prevailing in the automobile industries and banking industry. The companies taken
into consideration for the research are:-
1. Ashok Leyland
2. Eicher Motors
3. Hind Motors
4. Isuzu Motors
5. Tata Motors
6. Bank of Baroda
7. Punjab National Bank
8. Syndicate Bank
9. Union Bank of India
10. Bank of Maharashtra
2.8 Indian Stock Market
A stock market or equity market is the place where of buyers and sellers of stocks
meet and enter in to transactions for the shares of different companies. They trade in
securities listed on a stock exchange as well as those traded privately A stock exchange is
a form of exchange which provides a platform for the stock brokers and traders to trade
stocks, bonds, and other securities. Apart from this, Stock exchanges also provide facilities
for issue and redemption of securities and of other financial instruments, and capital events

including the payment of income and dividends on the same platform. In India, there are
23 stock exchanges. National stock exchange and Bombay stock exchange are the most
prominent and rest are the regional exchanges. Stock exchange informs about the prices
for the shares of the companies listed on them to the investors so as to facilitate them in
investing. A number of automobile industries have been listed on these stock exchanges
over the years and their stock prices are calculated every day and trading happens.
Primary and Secondary Markets
Stock exchanges have two different markets, the primary market and the secondary
market. The primary market is companies issuing shares to raise equity capital,
normally through an Initial Public Offering (‘IPO’). In the primary market the investor
buys shares directly from the company. The secondary market is investors buying and
selling shares at any time. This trade does not directly involve the company whose shares
are being bought or sold. In the secondary market, securities are sold by and transferred
from one investor or speculator to another. It is therefore important that the secondary
market be highly liquid. As a general rule, the greater the number of investors that
participate in a given marketplace, and the greater the centralization of that marketplace,
the more liquid the market.

CHAPTER-3
DATA ANALYSIS AND INTERPRETATION
This chapter consist of data related to two sectors namely as automobile and
banking. In each sector top 5 companies are selected for the analysis based on their returns
on monthly basis. The data shows the positive and negative returns of ten companies
monthly wise which is shown in the graph as well. An average is calculated for a year to
know the returns of the company in a year.
Average of 5 selected companies in each sector is calculated to know the return in
sector wise which enables the investors to identify the better or good sector of for the
investment. This data is collected with reference to nifty.
Table 3.1
Ashok Leyland
MONTH AVERAGE
Jul-14 -0.6
Aug-14 0.312
Sep-14 0.382
Oct-14 -0.046
Nov-14 0.086
Dec-14 -0.151
Jan-15 0.63
Feb-15 0.025
Mar-15 -0.36
Apr-15 -0.497
May-15 -0.216
Jun-15 0.024
Source: nseindia.com

Analysis
From the above table it is depicted that the returns of Ashok leyland for the month
of July-14, Oct-14, Dec-14, March-15, April-15, May-15 were negative and for the month
of Aug-14, Sep-14, Nov-14, Jan-15, Jun-15 were positive.
Graph 3.1
Inference
From the above graph it is depicted that for the month of Jan-15, it was got a highest
return at 0.63% and it is the best performer of the stock. For the month of July-14 the stock
was least performed at -0.6%.
-0.608
0.312
0.382
-0.046
0.086
-0.151
0.63
0.025
-0.36
-0.497
-0.216
0.024
-0.8
-0.6
-0.4
-0.2
0
0.2
0.4
0.6
0.8
ASHOK LEYLAND

Table 3.2
Hind Motors
MONTH AVERAGE
Jul-14 -1.017
Aug-14 -0.928
Sep-14 -0.671
Oct-14 -0.494
Nov-14 -0.894
Dec-14 -0.387
Jan-15 0.137
Feb-15 -0.087
Mar-15 -1.511
Apr-15 0.542
May-15 -0.965
Jun-15 -0.867
Analysis
From the above table it is depicted that the returns of Hind Motors for the
month of July-14, Aug-14, Sep-14, Oct-14, Nov-14, Dec-14, Feb-15, March-15,
May-15, June-15 were negative and for the Jan-15, Apr-15 were positive.

Graph 3.2
Inference
From the above graph it is depicted that for the month of Apr-15, it was got
a highest return at 0.542% and it is the best performer of the stock. For the month
of Mar-15 the stock was least performed at -1.511%.
-1.017
-0.928
-0.671
-0.494
-0.894
-0.387
0.137
-0.087
-1.511
0.542
-0.965
-0.867
-2
-1.5
-1
-0.5
0
0.5
1
Jul-14 Aug-14Sep-14 Oct-14Nov-14Dec-14 Jan-15 Feb-15 Mar-
15
Apr-15 May-
15
Jun-15
HIND MOTORS AVERAGE

Table 3.3
Tata Motors
MONTH AVERAGE
Jul-14 0.107
Aug-14 0.192
Sep-14 -0.197
Oct-14 -0.065
Nov-14 -0.116
Dec-14 -0.370
Jan-15 -0.725
Feb-15 -0.013
Mar-15 -0.539
Apr-15 -0.609
May-15 -0.188
Jun-15 -0.371
Analysis
From the above table it is depicted that the returns of Tata Motors for the
month of Sep-14, Oct-14, Nov-14, Dec-14, Jan-15, Feb-15, March-15, Apr-15, May-15,
June-15 were negative and for the July-14, Aug-14 were positive.

Graph 3.3
Inference
From the above graph it is depicted that for the month of Aug-14, it was got
of Jan-15 the stock was least performed at -0.725%.
0.107
0.192
-0.197
-0.065
-0.116
-0.37
-0.725
-0.013
-0.539
-0.609
-0.188
-0.371
-0.8
-0.6
-0.4
-0.2
0
0.2
0.4

Table 3.4
Isuzu Motors
MONTH AVERAGE
Jul-14 1.135
Aug-14 0.634
Sep-14 -1.138
Oct-14 1.133
Nov-14 -1.519
Dec-14 -0.784
Jan-15 0.384
Feb-15 0.05
Mar-15 0.002
Apr-15 -0.127
May-15 -0.829
Jun-15 -0.341
Analysis
From the above table it is depicted that the returns of Isuzu Motors for the
month, Sep-14, Nov-14, Dec-14, Apr-15, May-15, June-15 were negative and for
the of July-14, Aug-14, Oct-14, Jan-15, Feb-15, March-15 were positive.

Graph 3.4
Inference
From the above graph it is depicted that for the month of July-14, it was got
a highest return at 0.63% and it is the best performer of the stock. For the month of
Nov-14 the stock was least performed at -1.519%.
1.135
0.634
-1.138
1.133
-1.519
-0.784
0.384
0.05 0.002
-0.127
-0.829
-0.341
-2
-1.5
-1
-0.5
0
0.5
1
1.5
Jul-14 Aug-14Sep-14 Oct-14Nov-14Dec-14 Jan-15 Feb-15 Mar-
15
Apr-15 May-
15
Jun-15
ISUZU MOTORS AVERAGE

Table 3.5
Eicher Motors
MONTH AVERAGE
Jul-14 0.022
Aug-14 0.36
Sep-14 0.442
Oct-14 -0.164
Nov-14 0.802
Dec-14 -0.076
Jan-15 0.28
Feb-15 -0.592
Mar-15 -0.204
Apr-15 -0.523
May-15 0.922
Jun-15 0.34
Analysis
From the above table it is depicted that the returns of Eicher Motors for the
month of Oct-14, Dec-14, Feb-15, March-15, Apr-15, were negative and for the
July-14, Aug-14, Sep-14, Nov-14, Jan-15, May-15, June-15 were positive.

Graph 3.5
Inference
From the above graph it is depicted that for the month of May-15, it was got
of Feb-15 the stock was least performed at -0.592%.
0.022
0.36
0.442
-0.164
0.802
-0.076
0.28
-0.592
-0.204
-0.523
0.922
0.34
EICHER MOTORS AVERAGE

Table 3.6
Bank of Maharashtra
MONTH AVERAGE
Jul-14 -1.042
Aug-14 0.035
Sep-14 -0.13
Oct-14 -0.151
Nov-14 -0.368
Dec-14 -0.286
Jan-15 -1.039
Feb-15 -0.602
Mar-15 -0.475
Apr-15 -0.137
May-15 -0.701
Jun-15 -0.779
Analysis
From the above table it is depicted that the returns of Bank of Maharastra
for the month of July-14, Sep-14, Oct-14, Nov-14, Dec-14, Jan-15, Feb-15, March-
15, Apr-15, May-15, June-15 were negative and for the Aug-14 were positive.

Graph 3.6
Inference
From the above graph it is depicted that for the month of Aug-14, it was got
July-14 the stock was least performed at -1.042%.
-1.042
0.035
-0.13 -0.151
-0.368
-0.286
-1.039
-0.602
-0.475
-0.137
-0.701
-0.779
-1.2
-1
-0.8
-0.6
-0.4
-0.2
0
0.2
BOM AVERAGE

Table 3.7
Union Bank of India
MONTH AVERAGE
Jul-14 -1.037
Aug-14 0.349
Sep-14 -0.395
Oct-14 0.679
Nov-14 -0.164
Dec-14 -0.291
Jan-15 -1.004
Feb-15 1.267
Mar-15 -0.875
Apr-15 -0.677
May-15 0.829
Jun-15 -0.456
Analysis
From the above table it is depicted that the returns of Union Bank of India
for the month of July-14, Sep-14, Nov-14, Dec-14, Jan-15, March-15, Apr-15,
June-15 were negative and for the Aug-14, Oct-14, Feb-15, May-15 were positive.

Graph 3.7
Inference
From the above graph it is depicted that for the month of Feb-15, it was got
of July-14 the stock was least performed at -1.037%.
-1.037
0.349
-0.395
0.679
-0.164
-0.291
-1.004
1.267
-0.875
-0.677
0.829
-0.456
-1.5
-1
-0.5
0
0.5
1
1.5
UBI AVERAGE

Table 3.8
Syndicate Bank
MONTH AVERAGE
Jul-14 -1.068
Aug-14 -0.669
Sep-14 -0.219
Oct-14 0.555
Nov-14 -0.149
Dec-14 -0.125
Jan-15 -1.001
Feb-15 -0.028
Mar-15 -1.219
Apr-15 0.50
May-15 0.25
Jun-15 -0.736
Analysis
From the above table it is depicted that the returns of Syndicate Bank for
the month of July-14, Aug-14, Sep-14, Nov-14, Dec-14, Jan-15, Feb-15, March-
15, June-15 were negative and for the Oct-14, Apr-15, May-15 were positive.

Graph 3.8
Inference
From the above graph it is depicted that for the month of Oct-14, it was got
Mar-15 the stock was least performed at -1.219%.
-1.068
-0.669
-0.219
0.555
-0.149 -0.125
-1.001
-0.028
-1.219
0.5
0.25
-0.736

Table 3.9
Bank of Baroda
MONTH AVERAGE
Jul-14 -0.254
Aug-14 0.038
Sep-14 0.226
Oct-14 0.005
Nov-14 0.729
Dec-14 -0.217
Jan-15 -1.026
Feb-15 -0.569
Mar-15 -1.139
Apr-15 0.237
May-15 -0.157
Jun-15 -0.415
Analysis
From the above table it is depicted that the returns of Bank of Baroda for
the month of July-14, Dec-14, Jan-15, Feb-15, March-15, May-15, June-15 were
negative and for the Aug-14, Sep-14,Oct-14,Nov-14, Apr-15 were positive.

Graph 3.9
Inference
From the above graph it is depicted that for the month of Nov-14, it was got
-0.254
0.038
0.226
0.005
0.729
-0.217
-1.026
-0.569
-1.139
0.237
-0.157
-0.415
-1.5
-1
-0.5
0
0.5
1
Jul-14 Aug-
14
Sep-14Oct-14 Nov-
14
Dec-14Jan-15 Feb-15 Mar-
15
Apr-15 May-
15
Jun-15
BANK OF BARODA AVERAGE

Table 3.10
Punjab National Bank
MONTH AVERAGE
Jul-14 -0.365
Aug-14 0.104
Sep-14 -0.281
Oct-14 0.151
Nov-14 0.693
Dec-14 -0.238
Jan-15 -1.095
Feb-15 -1.221
Mar-15 -1.296
Apr-15 0.331
May-15 -0.141
Jun-15 -0.372
Analysis
From the above table it is depicted that the returns of Punjab National Bank
for the month of July-14, Sep-14, Dec-14, Feb-15, March-15, May-15, June-15
were negative and for the Aug-14, Oct-14, Nov-14, Jan-15, Apr-15 were positive.

Graph 3.10
Inference
From the above graph it is depicted that for the month of Nov-14, it was got
-0.365
0.104
-0.281
0.151
0.693
-0.238
-1.095
-1.221
-1.296
0.331
-0.141
-0.372
-1.5
-1
-0.5
0
0.5
1
PNB AVERAGE

CHAPTER-4
FINDINGS, SUGGESTION, & CONCLUSION
4.1. Findings
 It finds that in banking sector had all five banks were in negative returns but the
least negative return by Union Bank of India with a negative return of 0.148
followed by the Bank of Baroda with a negative return of -0.212, the third one was
Punjab National Bank with a negative return of -0.311, the fourth was syndicate
bank at a return of -0.326 and the least negative return given by bank of Maharashtra
at -0.473.
 In Automobile sector the Eicher motor has given a positive return of 0.1341
remaining four companies like Ashok Leyland ,Isuzu Motors, Tata Motors, Hind
Motors have given negative returns which are 0.03492, 0.117, 0.241, 0.595
respectively.
 When it was compared the two sector bank and automobile sector, the automobile
industry has better returns than the banking industry from the year july-14 to jun-
15.
 The comparison of banking sector and automobile sector of Indian stock market, it
observed that the both sector had its own importance to the Indian economy. It gives
good returns to the investors and contributing to the Indian economy in the large.
 Banks are operating through the geographical area of India and even the automotive
sector operating in the same manner.

4.2. Conclusion
The automotive industry in India is one of the larger markets in the world. It had
previously been one of the fastest growing globally, but is currently experiencing flat or
positive growth rates. India's passenger car and commercial vehicle manufacturing industry
is the sixth largest in the world.
It conclude that the return from the automobile sector is better than the banking
sector using the past records of the NSE and it is sincere suggest the investor people keep
away from banking securities and invest in automobile sector. The banks and automobiles
are the two important sector of the Indian economy for the development of the country.
Both the sectors are contributing for GDP of the country for the development in form of
infrastructure and ease accessibility of the money and transportation facility of the country
from rich person to a poor person of the country.

4.3. Suggestions
 Based on analysis the investor can concentrate on automobile sector than banking
sector.
 It is confirm that the return on automobile sector is more than the return on banking
sector.
 The average return of automobile sector is more than the return of banking sector.
 Banks are helping the general public for saving the money and keep it in bank. The
banks are giving the interest amount on the savings.
 Automobile sectors is contributing to the Indian economy because the Indian
economy is developing rapidly in terms of GDP.
 Auto industry thus present a good opportunity for the investors especially in the
form of Eicher Motors.
 Major Indian producers like Tata Motors, Hindustan Motors, Ashok Leyland, and
Isuzu Motors may be doing well in the form of numbers in sales but will face great
competition in for of Eicher Motors.
 Eicher Motors has a great position on the stock market and will attract investors
and this could lead to expansion and growth. Thus the Tata’s and other remaining
four companies need to take care of their stock and work on its consistency. This
would help them attract more investors and grow in this growing economy of India.
Increasing demands and sales numbers of Indian auto bring many opportunities for
these players if they are up to grab it.

CHAPTER 5
LEARNING EXPERIENCES
I learnt that theoretical concept and practical approach is absolutely different in terms of
application used by the organization in the corporate world.
It is observed that how the practical concept were applicable in terms of technical and
practical manner in new modern era.
It is also observed that the useful of the conceptual framework in the practical framework
of the companies.
It also observed and leaned how the MS-Excel helpful for the organization as well as a
financial analysis to predict the price of shares in more systematic manner.
During the four week of the study I have continuously observing the companies ups and
down from that I came to know how share market works and can give idea to other for the
procurement of the shares and when to sale the share.

BIBLIOGRAPHY
1. http://www.ibef.org/industry/banking-india.aspx (July 17, 2015)
2. www.nseindia.com
3. www.moneycontrol.com
4. https://www.dnb.co.in/topbanks/overview.asp ( July 20, 2015)
5. https://www.equitymaster.com/research-it/sector-info/auto/Automobiles-Sector-
Analysis-Report.asp (July 24, 2015)
6. http://info.shine.com/industry/automobiles-auto-ancillaries/3.html ( July 29,2015)
7. http://www.scribd.com/doc/48027972/INTRODUCTION-TO-AUTOMOBILE-
INDUSTRY#scribd (August 2, 2015)
8. http://www.investopedia.com/walkthrough/corporate-finance/4/capital-
markets/average-returns.aspx (August 7, 2015)
9. http://www.moneycontrol.com/annual-report/ashokleyland/directors-report/AL#AL
(August 10, 2015)
10. http://www.moneycontrol.com/annual-report/eichermotors/directors-report/EM#EM
(August 11, 2015)
11. https://www.dnb.co.in/topbanks/company_listing.asp?q=Total_Income# (August
12,2015)
12. International journal of research in mechanical engineering & technology. (August 12,
2015)
13. http://siteresources.worldbank.org/INTRES/Resources/469232-
1107449512766/Financial_Institutions_and_Markets_across_Countries.pdf (August 13,
2015)

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