Sapm
- 1. Course Instructor Need of the Subject Evaluation Activity Date Lecture No. 1 2 3 4 5 6
- 4. SAPM Pallavi Dawra The need of this subject has evolved along with the financial markets. We all know investment environment is highly dynamic these days but many basic principles remain important which will be part of the course. Further study of this subject will inculcate the skills in the students to conduct a sophisticated assessment of the current investment environment and evaluation of investment options. MId Sem Exam.15 Marks First Hourly: 5 Marks Second Hourly: 5 marks Project : 10 Marks (Semester Project ) Presentation: 5 Marks A)It is compulsory for the students to open a demat account and do a transaction through that account. B) Portfolio Management Game in the lab will be played . The game will be according to the current economic environment Lecture Content Introduction: Meaning Of Invesment, Avenues of Investment ( PPF, NSC, FD's, Bank Deposits, Equity, Debentures, Insurance etc. )Comparison of various investment options with respect to their risk & return characterstics. Investment Environment: introduction to the investment environment will include the current scenarion of possible available investment options and also Introduction to the stock market will be given. Implications of the Direct Tax Code 2 on the investment env. will be discussed Capital Market Performance in recent months will be discussed in detail (Source will be NSE Monthly performance book) How securities are traded : How firms issue securities ( IPO, Pvt Placement). SEBI guidelines on the new issue and Recent IPO's in the market their performance, pricing strategies. Where the securities are traded ( Secondary markets): Detail discussion on indian secondary Markets: It will include discussion about BSE, NSE their trading procedures, volumes, their main indexes etc.
- 5. Detail discussion on indian secondary Markets: It will include discussion about BSE, NSE their trading procedures, volumes, their main indexes etc. Detail insight into the trading: Types of Order( Limit order, Market order), Stop Loss. Trading Costs, Buying On margin How buying on margin works. Working will be explained with help of illusration. Short sale, Circuit breaker (meaning, Timings), Freeze on the share prices during trading, different catagories og freeze, Few examples of shares in different category of freeze,Insider Trading Case Study on Insider Trading: Live case Of HLL Measuring Risk & Return: Total return, Real Return , Variance, What are the components of return, Tax treatment, how it is calculated. What is risk. How we can measure it with the help of variance and standarad deviation.risk of a single security and risk of portfolio will be discussed. Security Analysis: Fundamental Analysis Macroeconomic and Industry Analysis: Global Economy: overall Global scenario and its impact on the indian stock market.Domestic Macro Economy: GDP, Inflation , Government policies and their inluence on the stock market. (Current Data will be of various economic factors will be incorporated in the lecture contents) Demand & Supply Shocks, Business Cycles,( The best picks according to business cycles) Economic Indicators Industry Analysis: Defining an industry, Senstivity to business Cycle, Sector rotation ( Peak, Contraction, Trough, Expansion) Industry life cycle, Industry Structure & Performance Financial Statement Analysis: Profit & Loss Account, Balance Sheet, Statement Of Cash Flows Ratio Ananlysis: Decomposition Of ROE, Market Price ratio and other asset Utilization ratios
- 6. Case Study of Financial Analysis Growth Industries) . Calculation of ratios and how ratios are interpreted) Equity Valuation: Intrinsic Value vs Market Price, Price Earning Ratio Technical Analysis: Concept & Inroduction Charting Techniques: Different types of Charts and their interpertation ( Head & Shoulder, Candle stick etc.) Various charting Examples Technical Indicators: Market Breadth, Advances & Declines, Put call ratio, Open Interest, their meaning and how to interpret behaviour of market. Case study of Technical Ananlysis (Nifty Charting) Case Study Of Stock Market Scam : Ketan Parekh Scam Market Efficiency and Behavioural Finance: Random Walk and the efficient Market Hypothesis, Implications Of EMH Weak Form Of Efficiency & its Tests ( Run test, Serial Correlation test, Filter Rule) Emprical evidences on Semistrong form of efficiency Emprical evidences of Strong form of efficiency Case study ( US-64 Scam) Derivatives: Meaning & Introduction, Future & Forward Contract, Their working and margin systems Option Markets: Introduction, Option Trading, Option Types( Put , Call), Working of Option contractc in the market. Values Of options at the time of expiration Option Strategies: Protective put , Covered Call, Straddle, spreads etc. Equilibrum in Capital Markets: Basics & introduction, Portfolio Risk & Retirn Efficient Portfolio and Optimal Portfolio Secruity market line Portfolio Revision Techniques