Financial Management: Submitted by Neena Mathews Fm-1871 Miriam Sam Fm-1872 Mba Batch 18 B

FINANCIAL MANAGEMENT
REPORT
Submitted by
NEENA MATHEWS FM-1871
MIRIAM SAM FM-1872
MBA BATCH 18 B
INTRODUCTION
The NIFTY 50 is that the flagship index on the National stock market of
India Ltd. (NSE). The Index tracks the behavior of a portfolio of blue
chip companies, the most important and most liquid Indian securities. It
includes 50 of the approximately 1600 companies listed on the NSE,
captures approximately 65% of its float-adjusted market capitalization
and is a true reflection of the Indian stock market.
The NIFTY 50 covers major sectors of the Indian economy and offers
investment managers exposure to the Indian market.The Index has been
trading since April 1996 and is well suited for benchmarking, index
funds and index-based derivatives.
The NIFTY 50 is owned and managed by India Index Services and
Products Ltd. (IISL) and is India's first specialized company focused on
an index as a core product.
The fluctuating stock prices make equity investments risky. Risk-averse

investors usually like better to stand back from the share market. the risk
The takers invest aggressively in the stocks for making wealth within the
long-run. The dynamic nature of the share market makes it an intriguing
prospect to venture into. One cannot predict the longer term performance
of the stock exchange. This keeps the investor awake with whether to
take a position in or not.
FACTORS CHANGING THE MARKET
Government Policies
Economy and business are largely suffering from Government
policies. The government has to implement new policies in reference to
the financial condition of the country. Any new change in policy is often
profitable for the economy or tightens the grip around. This creates an
opportunity of the stock exchange being affected thanks to any change
or introduction of the new policy by the government. As an example, the
rise in corporate taxes impacts the industry severely as their profits will
take success and at an equivalent time the stock price will fall.
Monetary Policy of RBI and Regulatory Policies of SEBI

Reserve Bank of India (RBI) is the apex body which regulates the
monetary policy in India. RBI keeps on reviewing its monetary policy.
Any increase or decrease in Repo and Reverse Repo rates impacts the
stock prices. If RBI raises the key rates it reduces the liquidity within the
banks. This makes borrowing costlier for them and successively, they
increase the lending rates. Ultimately, this makes borrowing highly
expensive for the businessmen and should find it difficult to service their
debt obligations.
Investors see it as a barrier within the expansion of business activities
and begin selling the shares of the corporate which reduces its stock
price. A reverse of this happens when RBI follows a dovish monetary
policy. Banks reduce lending rates which results in credit expansion.
Investors consider it as a positive step and stock price starts improving.
Similarly, any changes in trading and investment policies done by the
Securities Exchange Board of India (SEBI) who keeps an eye fixed on
the whole stock exchange activities impacts the performance of the
shares of the listed companies on the stock exchanges (NSE, BSE).
Nifty50 and Sensex are two major benchmark indices in India.
Exchange Rates
The exchange rates of Indian rupee keep fluctuating vis-à-vis other
currencies. When the rupee hardens in reference to other currencies it
causes Indian goods to become expensive in foreign markets,
Companies that are highly affected are those involved in overseas
operations. Companies hooked in to exports experience a drop by
demand for his or her goods abroad. Thus revenue from exports decline
and stock prices of such companies within the home country fall.
On the opposite hand, softening of rupee vis-à-vis other currencies leads
to the opposite effect, in this, the stock price of exporters rises whereas
that of importer drops.
Interest Rate and Inflation
Whenever the interest rates go up, banks raise the lending rates
which increase the value for corporates and individuals alike. The rising
cost will tend to make an impression on the profit levels of the business
affecting the stock prices of the corporate.
Inflation may be a surge within the pricing of products and services over
a period of your time. High inflation discourages investment and long-
term economic processes. The listed companies within the stock
exchange may postpone their investment and halt production, resulting
in a negative economic process. The autumn within the value of cash
could also cause a fall within the value of savings. The stocks of
luxurious companies also tend to suffer as nobody will want to take a
position in them. This not only adversely affects one's purchasing power
but also the investing power.
Foreign Institutional Investors (FIIs) and Domestic Institutional

Investors (DIIs)
FIIs and DIIs activities highly impact the stock exchange. As they
need a prominent role within the stocks of the corporate, their entry or
exit will create an enormous impact on the equity market and can
influence the stock prices.
Politics
Factors like election, budget, government intervention, stability,
and other factors have an enormous impact on the economy and
therefore the financial markets. The political events and budget
announcements create tremendous levels of volatility within the market
influencing the stock exchange deeply.
Natural Disasters
Natural disasters hamper the lives and therefore the market equally.
It impacts the company’s performance and therefore the capacity of
individuals to spend the cash. This may cause lower levels of
consumption, lower sales and revenues ultimately hitting the company’s
stock performance.
Economic Numbers
Various economic indicators affect the general economy,
ultimately creating an impression on the financial market. The
movement of oil prices and GDP has an enormous impact on the stock
exchange. A rustic that's hooked into imported oil, any price change is
probably going to impact the economy. The movement of oil prices is
one among the key determinants of the stock exchange. As and when the
costs rise, the expenses will increase and can lower the buyers’ ability to
take a position within the market.
Similarly, Gross Domestic Product (GDP) looks at the aspect of total
economic production of the country and its overall economic health. It
helps to showcase the economic developments and therefore the future
direction of the market. A healthy GDP status will create a positive
impact on financial markets and investment.
Gold Prices and Bonds

There is no established theory that expresses the connection
between stock price and gold & Bonds. Usually, stocks are considered a
risky investment whereas gold & bonds are considered as a secure
investment havens. So at the time of any major crisis within the
economy, investors prefer to take a position in safe instruments. As a
result, gold and bond prices increase while the stock price tumbles.
NIFTY 50 MARKET ANALYSIS AND

EXPECTATIONS
One month back NIFTY was 14,800.The market is showing an up and
down movement. Swing trading is seen there. It is difficult to predict
market trends. Due to the COVID situation the tendency of the market is
to crash but there is also a bullish tendency.
Here are some of the stocks which are showing an uptrend from last
year, that are equivalent to 52weeks. The price of Tata steel & JSW, two
important stocks in the steel sector, was 270 and 160 respectively. But
now when we check the price, we can see both increased to 900 & 630
respectively. Here we can see a rise in the price of stocks. The reason is
the demand for steel has increased. Tata motors is also a good stock
where there was a huge increase in price from 75 to 300.The blue chip
stocks in NIFTY 50 include TCS, Maruti, Nestle, HUL,L&T, Axis
Bank, Infosys etc. The blue chip stocks operate profitable in good as
well as bad times.
On April 16, 2021 NIFTY was volatile and trading between 14600
and 14700. The resistance point was at 14,700. The closing value of
NIFTY was 14,617.On Monday 19 April 2021, there was a rise in the
value from 14,617 to 14,306. The daily chart opened with a green candle
and it was closed at 14,360. The market showed strength compared to
the last week. It made up to 14,700. During the week the NIFTY had the
highest point at 14,500. The COVID situation is rising daily and the
cases are also increasing and that may affect the market.
During the month of April NIFTY has been trading between 14,145
and 15,000. There is a bullish as well as bearish movement. On 23 April
2021 NIFTY closed at 14,341. Nifty is swinging between 100-200
points. There is uncertainty in the market and the next movement is not
predictable. As the COVID cases are rising, the pharm stocks are having
importance. Dr.Reddy, Cipla, Sun pharma includes stocks in the pharma
sector.
IOC and BPCL stocks are not showing a rise trend. The price of
BPCL stock is showing a range of 400-420. The petroleum sector is
down. There are so many who seek to buy the share from the
Government. Another thing is to say about the PE ratio. The price to
earnings ratio shown till 35.It is not good. If PE ratio is between 25-30
ranges, it can be said as a good value.
The market prediction for the next week is an up & down swing
movement itself due to the COVID situation. On 26 April 2021,
IndusInd Bank is expecting to show a bearish trend. So more selling of
stock is expected. Wipro and Dr.Reddy labs are expecting a bullish
trend. People can focus on buying the stock. There is a chance for
NIFTY to go beyond 14000. But there will be swing movement between
14000- 14500. If the value is down beyond 14000 too, the market will
not crash much. If the Covid situation is going to continue as such,
within 3- 6 months, there is a chance for NIFTY to come at the 12000
range.

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FINANCIAL MANAGEMENT

The fluctuating stock prices make equity investments risky. Risk-averse

Monetary Policy of RBI and Regulatory Policies of SEBI

Foreign Institutional Investors (FIIs) and Domestic Institutional

Gold Prices and Bonds

NIFTY 50 MARKET ANALYSIS AND

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