Capital Market Segment 4

32
 Capital Market Segment 4
The trading on the NSE's capital market commenced on November 4, 1995 and within a
year of it's existence NSE became the largest stock exchange in the country. The growth of
NSE turnover figures shows a substantial rise from Rs. 1,805 crore in the year 1994-95 to
Rs. 15,69,558 crore in 2005-06. The CM segment of NSE provides an efficient and transparent
platform for trading of equity, preference shares, debentures, warrants, exchange traded
funds as well as retail Government securities.

Trading Mechanism
The trading system, known as the National Exchange for Automated Trading (NEAT) system, is
an on-line, fully-automated, nationwide, anonymous, order-driven, screen-based trading system.
In this system, a member can punch into the computer quantities of securities and the prices at
which he likes to transact and the transaction is executed as soon as it finds a matching sale or
buy order from a counter party. It electronically matches orders on a price/time priority and
hence cuts down on time, cost and risk of error, as well as on fraud resulting in improved
operational efficiency. It allows faster incorporation of price sensitive information into prevailing
prices, thus increasing the informational efficiency of markets. It enables market participants to
see the full market on real-time, making the market transparent. It allows a large number of
participants, irrespective of their geographical locations, to trade with one another simultaneously,
improving the depth and liquidity of the market. It provides tremendous flexibility to the users
in terms of kinds of orders that can be placed on the system. It ensures full anonymity by
accepting orders, big or small, from members without revealing their identity, thus providing
equal access to everybody. It provides a perfect audit trail which helps to resolve disputes by
logging in the trade execution process in entirety.
The trading platform of the CM segment is accessed not only from the computer terminals
from the premises of brokers spread over about 311 cities, but also from the personal computers
in the homes of investors through the Internet.

On-line IPOs
The on-line trading system of NSE is used by companies to make IPOs through book building.
It is a fully automated screen based bidding system that allows trading members to enter bids on
behalf of their clients. All bids received by the system are numbered, time stamped, and stored
in the book till the last day of the book building process and the offer price is determined after
the bid closing date. While ensuring efficient price discovery, this system reduces time taken for
completion of the issue process. 123 companies have used the on-line IPO system of NSE by
the end of March 2006.

Market Performance
Trading Value
The average daily trading volume also increased by leaps and bounds from Rs. 17 crore during
1994-95 to Rs. 6,253 crore during 2005-06. The CM segment registered a record number of
33
 trades on April 07, 2006 of 3,864,268 trades. The business growth of the CM segment is presented
in Table 4-1 and Chart 4-1.
Internet Trading
At the end of March 2006, 142 members on the CM segment and 127 on the F&O Segment
were permitted to allow investor's web based access to NSE's trading system. The members
of the exchange in turn had registered 14,43,291 clients for web based access as on March
31, 2006. In the Capital market segment about Rs. 1,83,428.52 crore, constituting 11.68% of
total trading volume, were routed and executed through internet. The following table gives
the growth of internet trading.
Year Enabled Registered Trading Volume % of total
Members* Clients* (Rs. crore) trading volume
1999-00 3 -- -- --
2000-01 61 1,23,578 7,287.81 0.54
2001-02 82 2,31,899 8,138.81 1.59
2002-03 80 346,420 15,360.76 2.48
2003-04 70 463,560 37,945.08 3.45
2004-05 78 849,696 81,033.81 7.11
2005-06 142 1,44,3291 1,83,428.52 11.68

* At the end of the financial year 2005-2006.

Liquidity
The liquidity in the CM segment, as measured by the turnover ratio, has witnessed a steady
increase and reached nearly 7.44% during March 2006. 91.74% of the securities available for
trading were traded for at least 100 days during 2005-06, as indicated below:
Frequency Distribution of Companies Traded During 2005-06

No. of Days Traded No. of Securities % to Total

On top of 100 877 91.74
91-100 3 0.31
81-90 5 0.52
71-80 8 0.84
61-70 5 0.52
51-60 6 0.63
41-50 4 0.42
31-40 5 0.52
21-30 10 1.05
11-20 19 1.99
1-10 14 1.46
Total 956 100.00

Distribution of Turnover
The concentration of trading among top 'N' securities/brokers is presented in Table 4-2. It
is observed that the top '5' and '100' securities account for about 22.15% and 73.12% of
total turnover in the CM segment in 2005-2006. The details of '50' most active securities
during 2005-06 which accounted for 59.22% of turnover, are presented in Table 4-3.
34
Broker-wise distribution of turnover as presented in Table 4-2 indicates increasing diffusion
of trades among a large number of trading members over the years. During 2005-06, top '5'
brokers accounted for only 14.62% of turnover, while top '100' brokers accounted for 68.45%
of total turnover.

Market Capitalisation
The total market capitalisation of securities available for trading on the CM segment increased
from Rs. 363,350 crore as at end March 1995 to Rs. 2,813,201 crore as at end March 2006
(Table 4-4). The details of '50' top companies by market capitalisation, which accounted for
65.94% of total market capitalisation as at end March 2006, are presented in Table 4-5.

Sectoral Distribution
Table 4-6 presents the share of top '50' companies, classified according to different sectors,
in terms of trading volume and market capitalisation. A drastic change in the importance of
different sectors is observed since NSE commenced trading. The share of manufacturing
companies in trading volume of top '50' companies, which was more than 23% in 1998-99,
had witnessed a decline in the years 2001-02 and 2002-03, but a turnaround was noticed in
the year 2003-04 which was also maintained in 2005-06 with the share of manufacturing
companies rising to 43.01 %. As compared to this, the share of information technology (IT)
companies in trading volume, which had been quite high witnessed a considerable decline
and stood at 21.49% in 2005-06. The share of IT companies in the trading volumes of the
top '50' companies have witnessed considerable fall over the past couple of years though it
has picked up once again in the last financial year . A mixed trend has been noticed in these
sectors in terms of market capitalization. Sectors like manufacturing which used to dominate
in terms of market capitalisation in the year 1999-00 witnessed a dip in 2002-03, however
this sector has witnessed a rebound and accounted for 23.35% and 29.30% in 2004-05 and
2005-06 respectively. The IT sector has also shown a turnaround this year with 23.97%
share among the top '50' companies (in terms of market capitalization) in 2005-06.

Indices
India Index Services and Products Ltd. (IISL), in technical partnership with S&P, have
developed and have been maintaining scientifically an array of indices of stock prices on
NSE. The popular indices are the S&P CNX Nifty, CNX Midcap, CNX Nifty Junior, S&P
CNX Defty, S&P CNX 500, S&P CNX Industry indices and CNX segment indices. S&P
CNX Nifty, introduced in November 3, 1995, is based on 50 largest and highly liquid stocks.
CNX Nifty Junior, introduced in December 1996, is built out of the next 50 large and liquid
stocks. These indices are monitored and updated dynamically and are reviewed regularly.
The comparative movement of major sectoral indices along with that of S&P CNX Nifty is
presented in Chart 4-2.

The S&P CNX Nifty accounted for 85.09% of total market capitalisation as at end March
2006 while the CNX Nifty Junior accounted for 14.90% of market capitalisation (Table 4-4).
The compositions of these two indices as at end March 2006 are presented in Table 4-7 and
Table 4-8. The industry wise weightages of securities included in S&P CNX Nifty are
presented in Table 4-9.

35
 The movements in S&P CNX Nifty and CNX Nifty Junior are presented in Table 4-10 and Table
4-11 respectively. The S&P CNX Nifty Index touched its peak of 3433.85 on March 6, 2006. The
S&P CNX Nifty yielded a point to point positive return of 20.26% during 2005-06.

Transaction Charges
The maximum brokerage chargeable by trading member in respect of trades effected in the
securities admitted to dealing on the CM segment of the Exchange is fixed at 2.5% of the
contract price, exclusive of statutory levies like, securities transaction tax, SEBI turnover
fee, service tax and stamp duty. This maximum brokerage is inclusive of the brokerage
charged by the sub-broker which shall not exceed 1.5% of contract price. However, the
brokerage charges as low as 0.15% are also observed in the market.

A member is required to pay the exchange transaction charges at the rate of 0.0035% (Rs. 3.5 per
Rs. 1 lakh) of the turnover. Trading members are also required to pay securities transaction
tax (STT) on all delivery based transaction at the rate of 0.125% (payable by both buyer and
seller) and in case of non-delivery transactions at the rate of 0.025% for equities (payable by
the seller only).

Clearing & Settlement

While NSE provides a platform for trading to its trading members, the National Securities
Clearing Corporation Ltd. (NSCCL) determines the funds/securities obligations of the trading
members and ensures that trading members meet their obligations. The core processes
involved in clearing and settlement are:

(a) Trade Recording: The key details about the trades are recorded to provide basis for
settlement. These details are automatically recorded in the electronic trading system of
the exchanges.

(b) Trade Confirmation: The parties to a trade agree upon the terms of trade like security,
quantity, price, and settlement date, but not the counterparty which is the NSCCL. The
electronic system automatically generates confirmation by direct participants.

(c) Determination of Obligation: The next step is determination of what counter-parties owe,
and what counter-parties are due to receive on the settlement date. The NSCCL
interposes itself as a central counterparty between the counterparties to trades and
nets the positions so that a member has security wise net obligation to receive or deliver
a security and has to either pay or receive funds.

(d) Pay-in of Funds and Securities: The members bring in their funds/securities to the NSCCL.
They make available required securities in designated accounts with the depositories
by the prescribed pay-in time. The depositories move the securities available in the
accounts of members to the account of the NSCCL. Likewise members with funds
obligations make available required funds in the designated accounts with clearing banks
by the prescribed pay-in time. The NSCCL sends electronic instructions to the clearing
banks to debit member's accounts to the extent of payment obligations. The banks
process these instructions, debit accounts of members and credit accounts of the
NSCCL.

36
(e) Pay-out of Funds and Securities: After processing for shortages of funds/securities and
arranging for movement of funds from surplus banks to deficit banks through RBI
clearing, the NSCCL sends electronic instructions to the depositories/clearing banks
to release pay-out of securities/funds. The depositories and clearing banks debit
accounts of the NSCCL and credit accounts of members. Settlement is complete upon
release of pay-out of funds and securities to custodians/members.
(f) Risk Management: A sound risk management system is integral to an efficient settlement
system. The NSCCL ensures that trading members' obligations are commensurate with
their net worth. It has put in place a comprehensive risk management system, which is
constantly monitored and upgraded to pre-empt market failures. It monitors the track
record and performance of members and their net worth; undertakes on-line monitoring
of members' positions and exposure in the market, collects margins from members
and automatically disables members if the limits are breached. The risk management
methods adopted by NSE have brought the Indian financial market in line with the
international markets.

Settlement Agencies
The NSCCL, with the help of clearing members, custodians, clearing banks and depositories
settles the trades executed on exchanges. The roles of each of these entities are explained below:
(a) NSCCL: The NSCCL is responsible for post-trade activities of a stock exchange. Clearing
and settlement of trades and risk management are its central functions. It clears all trades,
determines obligations of members, arranges for pay-in of funds/securities, receives funds/
securities, processes for shortages in funds/securities, arranges for pay-out of funds/
securities to members, guarantees settlement, and collects and maintains margins/collateral/
base capital/other funds. It is the counterparty to all settlement obligations of the members.
(b) Clearing Members: They are responsible for settling their obligations as determined by the
NSCCL. They have to make available funds and/or securities in the designated accounts
with clearing bank/depositories, as the case may be, to meet their obligations on the
settlement day.
(c) Custodians: Custodian is a clearing member but not a trading member. He settles trades
assigned to him by trading members. He is required to confirm whether he is going to settle
a particular trade or not. If it is confirmed, the NSCCL assigns that obligation to that
custodian and the custodian is required to settle it on the settlement day.
(d) Clearing Banks: Every clearing member is required to open a dedicated clearing account with
one of the clearing banks. Based on his obligation as determined through clearing, the
clearing member makes funds available in the clearing account for the pay-in and receives
funds in case of a pay-out.
(e) Depositories: Depositories help in the settlement of the dematerialised securities. Each
custodian/clearing member is required to maintain a clearing pool account with the
depositories. He is required to make available the required securities in the designated account
on settlement day. The depository runs an electronic file to transfer the securities from
accounts of the custodians/clearing member to that of NSCCL. As per the schedule of
37
 allocation of securities determined by the NSCCL, the depositories transfer the securities
on the pay-out day from the account of the NSCCL to those of members/custodians.
(f) Professional Clearing Member: NSCCL admits special category of members namely, professional
clearing members. Professional Clearing Member (PCM) may clear and settle trades executed
for their clients (individuals, institutions etc.). In such an event, the functions and
responsibilities of the PCM would be similar to Custodians. PCMs may also undertake
clearing and settlement responsibility for trading members. In such a case, the PCM would
settle the trades carried out by the trading members connected to them. A PCM has no
trading rights but has only clearing rights, i.e. he clears the trades of his associate trading
members and institutional clients.

Settlement Cycles
NSCCL clears and settles trades as per well-defined settlement cycles, as presented in Table 4-13.
Since the beginning of the financial year 2003, all securities are being traded and settled under
T+2 rolling settlement. The NSCCL notifies the consummated trade details to clearing members/
custodians on the trade day. The custodians affirm back the trades to NSCCL by T+1 day. Based
on the affirmation, NSCCL nets the positions of counterparties to determine their obligations.
A clearing member has to pay-in/pay-out funds and/or securities. A member has a security-wise
net obligation to receive/deliver a security. The obligations are netted for a member across all
securities to determine his fund obligations and he has to either pay or receive funds. Members'
pay-in/pay-out obligations are determined latest by T+1 day and are forwarded to them on the
same day so that they can settle their obligations on T+2 day. The securities/funds are paid-in/
paid-out on T+2 day and the settlement is complete in 3 days from the end of the trading day.

Settlement Statistics
The settlement statistics of the CM segment is presented in Table 4-13. During 2005-06 NSCCL
settled trades for Rs. 1,516839 crore of which 26.99% were settled by delivery. However, these
deliveries include only the net deliveries made by the trading members to the clearing corporations.
Of total delivery, nearly 100% of securities were delivered in demat form in 2005-06. The segment
is witnessing substantial reduction in the share of short deliveries. Short deliveries averaged
around 0.39% of total delivery in 2005-2006.

Risk Management System

There have been a number of experiments with different risk containment measures in the
recent pasts. NSE being aware of the importance of the risk containment measures has a
dedicated Risk Group which looks into aspects relating to the risk management. These
measures have been repeatedly reviewed and revised. The risk containment measures in
vogue are described below:

Capital Adequacy
The capital adequacy requirements stipulated by the NSE are substantially in excess of the
minimum statutory requirements as also in comparison to those stipulated by other stock
exchanges. A person seeking membership in the CM and F&O segment is required to have
38
a net worth of Rs. 1 crore (Rs. 3 crore in case of clearing member), and keep an interest free
security deposit of Rs. 1.25 crore and collateral security deposit of Rs. 0.25 crore with the
Exchange/NSCCL. The deposits kept with the Exchange as part of the membership
requirement are taken as base minimum capital of the member to determine the member's
intra-day trading limit and/or gross exposure limit. Additional base capital is required to be
deposited by the member for taking additional exposure.

Trading and Exposure Limits

NSCCL imposes limits on turnover and exposure in relation to the base minimum capital or
additional base capital of a member, which is the amount of funds, and securities that a member
keeps with the Exchange/NSCCL.
The members are subject to limits on trading volumes in a day as well as exposure at any point of
time. Gross intra-day turnover of a member shall not exceed 25 times the net capital (cash
deposit plus security deposit). Gross exposure (aggregate of net cumulative outstanding positions
in each security) of a member at any point of time shall not exceed 8.5 times the total base capital
(not utilised towards margin) up to Rs. 1 crore. If a member has free capital in excess of
Rs. 1 crore, his exposure shall not exceed Rs. 8.5 crore plus 10 times of the capital in excess
of Rs. 1 crore. Members exceeding these limits are automatically and instantaneously disabled
by the automated trading system. A penalty of Rs. 5,000 is levied for margin violation.

Margin Requirements
NSCCL imposes stringent margin requirements as a part of its risk containment measures.
The categorisation of stocks for imposition of margins has the structure as given below;

The stocks which have traded at least 80% of the days for the previous 18 months shall
constitute the Group I and Group II.

Out of the scrips identified above, the scrips having mean impact cost of less than or
equal to 1% shall be categorised under Group I and the scrips where the impact cost is
more than 1, shall be categorised under Group II.

The remaining stocks shall be categorised under Group III.

The impact cost shall be calculated at 15th of each month on a rolling basis considering
the order book snapshots of the previous six months. On the calculated impact cost,
the scrip shall move from one group to another group from the 1st of the next month.
The impact cost is required to be calculated for an order value of Rs. 1.00 lakh.
The daily margin comprises of the sum of Mark to Market Margin (MTM margin) and Value
at Risk-based Margin (VaR-based margin). VaR margin is applicable for all securities in rolling
settlement. All securities are classified into three groups for the purpose of VaR margin.
VaR Based Margins
For the securities listed in Group I Scrip wise daily volatility calculated using the
exponentially weighted moving average methodology that is used in the index futures
market and the scrip wise daily VaR would be 3.5 times the volatility so calculated.
For the securities listed in Group II the VaR margin shall be higher of scrip VaR (3.5
sigma) or three times the index VaR, and it shall be scaled up by root 3.
39
 For the securities listed in Group III , the VaR margin would be equal to five times the
index VaR and scaled up by square root of (√3).
VaR margin rate for a security constitute the following:
1. Value at Risk (VaR) based margin, which is arrived at, based on the methods
stated above. The index VaR, for the purpose, would be the higher of the daily
Index VaR based on S&P CNX NIFTY or BSE SENSEX. The index VaR would
be subject to a minimum of 5%.
2. Additional VaR Margin: 6% as specified by SEBI.
3. Security specific Margin : NSCCL may stipulate security specific margins for the
securities from time to time.
The VaR based margin is rounded off to the next higher integer (For eg, if the VaR
based Margin rate is 10.01, it would be rounded off to 11.00) and capped at 100%.
The VaR margin rate computed as mentioned above will be charged on the net
outstanding position (buy value-sell value) of the respective clients on the respective
securities across all open settlements. The net positions at a client level for a member
are arrived at and thereafter, it is grossed across all the clients for a member to compute
gross exposure for margin calculation.

Mark-to-Market Margin
Mark to market margin is computed on the basis of mark to market loss of a member.
Mark to market loss is the notional loss which the member would incur in case the
cumulative net outstanding position of the member in all securities, at the end of the
relevant day were closed out at the closing price of the securities as announced at the
end of the day by the NSE. Mark to market margin is calculated by marking each
transaction in scrip to the closing price of the scrip at the end of trading. In case the
security has not been traded on a particular day, the latest available closing price at the
NSE is considered as the closing price. In the event of the net outstanding position of
a member in any security being nil, the difference between the buy and sell values
would be considered as notional loss for the purpose of calculating the mark to market
margin payable.
MTM profit/loss across different securities within the same settlement is set off to
determine the MTM loss for a settlement. Such MTM losses for settlements are
computed at client level.
Non-payment of the margin attracts penal charge @ 0.07% per day of the amount not
paid throughout the period of non-payment. Trades done by trading embers on behalf
of institutions are, however, exempt from margin and exposure requirements.

Index-based Circuit Filters

An index based market-wide circuit breaker system applies at three stages of the index
movement either way at 10%, 15% and 20%. These circuit breakers bring about a coordinated
trading halt in all equity and equity derivatives markets nation wide. The breakers are triggered
by movement of either S&P CNX Nifty or Sensex, whichever is breached earlier.

40
• In case of a 10% movement of either of these indices, there would be a one-hour market
halt if the movement takes place before 1:00 p.m. In case the movement takes place at or
after 1:00 p.m. but before 2:30 p.m. there would be trading halt for ½ hour. In case movement
takes place at or after 2:30 p.m. there will be no trading halt at the 10% level and market
shall continue trading.
• In case of a 15% movement of either index, there shall be a two-hour halt if the movement
takes place before 1 p.m. If the 15% trigger is reached on or after 1:00 p.m. but before 2:00
p.m., there shall be a one-hour halt. If the 15% trigger is reached on or after 2:00 p.m. the
trading shall halt for remainder of the day.
• In case of a 20% movement of the index, trading shall be halted for the remainder of
the day.
NSE may suo moto cancel the orders in the absence of any immediate confirmation from
the members that these orders are genuine or for any other reason as it may deem fit. The
Exchange views entries of non-genuine orders with utmost seriousness as this has market-
wide repercussion. As an additional measure of safety, individual scrip-wise price bands
have been fixed as below:
• Daily price bands of 2% (either way) on a set of specified securities,
• Daily price bands of 5% (either way) on a set of specified securities,
• Price bands of 20% (either way) on all remaining securities (including debentures,
warrants, preference shares etc. which are traded on CM segment of NSE),
• No price bands are applicable on scrips on which derivative products are available or
on scrips included in indices on which derivatives products are available.
For Auction market the price bands of 20% are applicable. In order to prevent members
from entering orders at non-genuine prices in such securities, the Exchange has fixed operating
range of 20% for such securities.

Settlement Guarantee Fund

The Settlement Guarantee Fund (SGF), provides the cushion for any residual risk. It operates
like a self-insurance mechanism where members contribute to the Fund. In the event of
failure of a trading member to meet settlement obligations or committing a default, the
Fund is utilised to the extent required for successful completion of the settlement. This has
eliminated counter-party risk of trading on the Exchange. The market has full confidence
that settlement shall take place in time and shall be completed irrespective of default by
isolated trading members.

Surveillance
As the securities transactions are prone to a variety of manipulations, the Exchange has
instituted a strong surveillance mechanism to protect market integrity. It includes:

On-line Monitoring
NSCCL has in place an on-line monitoring and surveillance system whereby exposure of the
members is monitored on a real time basis. A system of alerts has been built in so that both
41
 the member and NSCCL are alerted as per pre-set levels (reaching 70%, 85%, 90, 95% and
100%) when the members approach their allowable limits. The system enables NSSCL to
further check the micro-details of members' positions, if required, and take pro-active action.
The on-line surveillance mechanism also generates various alerts/reports on any price/volume
movement of securities not in line with past trends/patterns. For this purpose the exchange
has put in place a system that generates alerts. Alerts are scrutinised and if necessary taken
up for follow up action. Open positions of securities are also analysed. Besides this, rumors
in the print media are tracked and where they are price sensitive, companies are contacted
for verification. Replies received are informed to the members and the public.

Investigation and Inspection

As per regulatory requirement, a minimum of 20% of the active trading members are to be
inspected every year to verify the level of compliance with various rules, byelaws and
regulations of the Exchange. Usually, inspection of more members than the regulatory
requirement is undertaken every year. The inspection randomly verifies if investor interests
are being compromised in the conduct of business by the members. The investigation is
based on various alerts which require further analysis. If further analysis suggests any possible
irregular activity which deviates from the past trends/patterns and concentration of trading
at NSE at the member level, then a more detailed investigation is undertaken. If the detailed
investigation establishes any irregular activity, then disciplinary action is initiated against the
member. If the investigation suggests possible irregular activity across exchanges and/or
possible involvement of clients, then the same is informed to SEBI.

42
 Table 4-1:Business Growth of CM Segment
Month & Year No. of No. of No. of Traded Trading Average Turnover Demat Demat
Trading Companies Trades Quantity Value Daily Trading Ratio Traded Trading
Days Traded Value Quantity Value
(Lakh) (Lakh) (Rs. cr.) (Rs. cr.) (%) (Lakh) (Rs. cr.)
1994-95 (Nov.-Mar.) 102 -- 3 1,391 1,805 17 -- 0 0
1995-96 246 -- 66 39,912 67,287 276 -- 0 0
1996-97 250 -- 264 135,561 294,503 1,176 -- 2 6
1997-98 244 -- 381 135,685 370,193 1,520 -- 315 351
1998-99 251 -- 546 165,327 414,474 1,651 -- 8,542 23,818
1999-00 254 -- 984 242,704 839,052 3,303 -- 153,772 711,706
Apr-00 18 1,059 74 13,390 57,229 3,179 6.76 11,679 52,021
May-00 22 1,050 111 16,477 79,037 3,593 10.00 14,538 72,995
Jun-00 22 1,058 132 19,607 119,373 5,426 14.00 17,392 111,926
Jul-00 21 1,050 122 19,114 110,056 5,241 14.74 17,114 101,847
Aug-00 22 1,038 138 23,456 125,347 5,698 15.78 21,177 116,186
Sep-00 20 1,035 142 25,946 142,480 7,124 19.51 24,167 135,714
Oct-00 21 993 131 24,154 106,854 5,088 15.11 21,860 99,567
Nov-00 22 1,006 151 31,905 122,731 5,579 16.06 28,857 113,335
Dec-00 20 1,008 163 35,790 131,415 6,571 17.28 32,159 120,774
Jan-01 22 978 186 42,152 148,830 6,765 18.43 40,789 143,912
Feb-01 20 984 192 48,268 135,932 6,797 17.22 48,222 135,850
Mar-01 21 966 135 29,277 60,226 2,868 9.16 29,268 60,211
2000-01 251 1,201 1,676 329,536 1,339,510 5,337 -- 307,222 1,264,337
Apr-01 19 951 114 20,782 35,616 1,875 5.45 20,735 35,605
May-01 22 954 141 25,715 48,329 2,197 8.16 25,714 48,329
Jun-01 21 963 133 22,336 42,783 2,037 7.51 21,935 42,625
Jul-01 22 924 99 13,142 27,228 1,238 4.74 13,137 27,227
Aug-01 21 931 112 15,937 29,417 1,401 5.11 15,931 29,415
Sep-01 20 917 135 17,342 35,323 1,766 6.94 17,342 35,323
Oct-01 21 917 141 19,799 35,326 1,682 6.59 19,796 35,324
Nov-01 20 920 153 25,349 42,132 2,107 7.25 25,295 42,121
Dec-01 19 895 177 31,777 54,468 2,867 9.85 31,775 54,465
Jan-02 23 896 213 34,384 68,719 2,988 12.19 34,219 68,606
Feb-02 20 840 177 28,552 49,564 2,478 7.97 28,547 49,564
Mar-02 19 840 157 23,294 44,262 2,330 6.95 23,291 44,262
2001-02 247 1,019 1,753 278,408 513,167 2,078 -- 277,717 512,866
Apr-02 22 843 201 28,798 53,320 2,424 8.21 28,782 53,316
May-02 22 821 217 35,303 54,979 2,499 8.70 35,303 54,978
Jun-02 20 825 189 38,519 44,241 2,212 6.70 38,519 44,241
Jul-02 23 820 211 36,821 51,398 2,235 8.44 36,821 51,398
Aug-02 21 806 191 26,000 46,113 2,196 7.29 26,000 46,113
Sep-02 20 806 185 25,581 46,499 2,325 7.75 25,581 46,499
Oct-02 21 770 201 26,458 51,902 2,472 8.55 26,458 51,902
Nov-02 19 767 175 23,631 51,352 2,703 7.96 23,631 51,352
Dec-02 21 762 219 33,022 61,973 2,951 9.21 33,022 61,973
Jan-03 23 763 239 36,336 64,762 2,816 11.32 36,336 64,762
Contd...

43
44
Contd...

Table 4-1:Business Growth of CM Segment

Month & Year No. of No. of No. of Traded Trading Average Turnover Demat Demat
Trading Companies Trades Quantity Value Daily Trading Ratio Traded Trading
Days Traded Value Quantity Value
(Lakh) (Lakh) (Rs. cr.) (Rs. cr.) (%) (Lakh) (Rs. cr.)
Feb-03 19 760 191 28,681 48,289 2,542 8.30 28,681 48,289
Mar-03 20 762 177 24,917 43,160 2,158 8.04 24,917 43,160
2002-03 251 899 2,397 364,066 617,989 2,462 `-- 364,049 617,984
Apr-03 20 738 207 31,448 48,971 2,449 9.23 31,448 48,971
May-03 21 743 250 44,001 54,690 2,604 8.94 44,001 54,690
Jun-03 21 744 267 51,896 61,586 2,933 9.08 51,896 61,586
Jul-03 23 755 320 64,906 78,878 3,429 10.97 64,906 78,878
Aug-03 20 752 322 84,554 85,347 4,267 10.20 84,554 85,347
Sep-03 22 761 346 71,848 103,345 4,698 11.97 71,848 103,345
Oct-03 23 728 358 71,768 115,595 5,026 12.47 71,768 115,595
Nov-03 20 738 307 56,716 92,886 4,644 9.48 56,716 92,886
Dec-03 22 754 379 71,754 110,373 5,017 9.46 71,754 110,373
Jan-04 21 761 398 73,340 134,269 6,394 12.03 73,340 134,269
Feb-04 19 763 308 46,484 108,718 5,722 9.79 46,484 108,718
Mar-04 22 769 318 44,586 104,877 4,767 9.36 44,586 104,877
2003-04 254 804 3,780 713,300 1,099,534 4,329 -- 713,300 1,099,534
Apr-04 20 771 319 53,686 100,951 5,048 8.61 53,686 100,951
May-04 21 776 357 54,651 98,920 4,710 10.41 54,651 98,920
Jun-04 22 787 336 41,987 84,898 3,859 8.67 41,987 84,898
Jul-04 22 793 377 63,058 93,836 4,265 8.80 63,058 93,836
Aug-04 22 799 358 57,543 86,856 3,948 7.60 57,543 86,856
Sep-04 22 809 367 62,666 88,508 4,023 7.21 62,666 88,508
Oct-04 20 814 299 47,274 75,698 3,785 6.04 47,274 75,698
Nov-04 20 816 328 62,548 82,035 4,102 5.67 62,548 82,035
Dec-04 23 821 475 99,326 115,593 5,026 7.32 99,326 115,593
Jan-05 19 820 410 81,575 99,732 5,249 6.40 81,575 99,732
Feb-05 20 825 425 89,665 99,989 4,999 6.19 89,665 99,989
Mar-05 22 831 459 83,705 113,055 5,139 7.13 83,705 113,055
2004-05 253 856 4,509 797,685 1,140,072 4,506 -- 797,685 1,140,072
Apr-05 20 829 367 51,265 82,718 4,136 5.45 51,265 82,718
May-05 22 830 413 56,516 86,802 3,946 5.24 56,516 86,802
Jun-05 23 843 477 70,485 111,397 4,843 6.45 70,485 111,397
Jul-05 20 856 503 84,134 123,008 6,150 6.65 84,134 123,008
Aug-05 22 864 570 100,717 145,731 6,624 7.44 100,717 145,731
Sep-05 21 872 576 91,996 145,393 6,923 6.93 91,996 145,393
Oct-05 20 887 463 57,670 120,810 6,040 6.27 57,670 120,810
Nov-05 20 872 434 53,870 109,578 5,479 5.06 53,870 109,578
Dec-05 22 888 553 63,699 149,908 6,814 6.45 63,699 149,908
Jan-06 20 893 554 66,717 149,442 7,472 6.14 66,717 149,442
Feb-06 19 900 521 61,629 135,374 7,125 5.39 61,629 135,374
Mar-06 22 920 658 85,788 209,395 9,518 7.44 85,788 209,395
2005-06 251 928 6,089 844,486 1,569,558 6,253 55.79 844,486 1,569,558
 Chart 4-1: Business Growth of Capital Market Segment

Table 4-2: Percentage Share of Top 'N' Securities/Member in Turnover

No. of Securities/Brokers
5 10 25 50 100
Securities
1994-95 (Nov.-Mar.) 48.77 55.92 68.98 81.14 91.07
1995-96 82.98 86.60 90.89 93.54 95.87
1996-97 84.55 91.96 95.70 97.03 98.19
1997-98 72.98 85.17 92.41 95.76 97.90
1998-99 52.56 67.11 84.71 92.03 95.98
1999-00 39.56 59.22 82.31 88.69 93.66
2000-01 52.15 72.90 88.93 94.57 97.46
2001-02 44.43 62.92 82.24 91.56 95.91
2002-03 40.58 55.41 77.8 89.16 95.38
2003-04 31.04 44.87 64.32 79.44 91.03
2004-05 25.88 41.65 57.98 72.40 84.26
2005-06 22.15 31.35 46.39 59.22 73.12
Members
1994-95 (Nov.-Mar.) 18.19 26.60 44.37 61.71 81.12
1995-96 10.65 16.56 28.61 41.93 58.59
1996-97 5.94 10.08 19.67 30.57 45.95
1997-98 6.29 10.59 18.81 29.21 44.24
1998-99 7.73 11.96 20.77 31.66 47.02
1999-00 7.86 12.99 22.78 34.41 49.96
2000-01 7.78 12.76 23.00 33.86 48.79
2001-02 7.14 12.29 23.63 36.32 53.40
2002-03 10.26 16.41 29.07 42.49 59.15
2003-04 11.58 17.36 30.34 44.05 61.37
2004-05 13.52 20.20 34.97 49.01 65.09
2005-06 14.62 22.57 38.17 52.57 68.45

45
 Table 4-3: '50' Most Active Securities during 2005-06 in Terms of Trading Value

Rank Name of Security Trading Value % Share in Market % Share in

(Rs. crore) Total Capitalisation Total
Trading as on Market
Value 31.3.2006 Capitalisation
(Rs. crore)

1 RELIANCE INDUSTRIES LTD 138,737 8.84 110,833 3.94

2 INFOSYS TECHNOLOGIES LTD 60,164 3.83 81,847 2.91
3 RELIANCE CAPITAL LTD 51,600 3.29 10,567 0.38
4 SATYAM COMPUTER SERVICES 49,533 3.16 27,506 0.98
5 STATE BANK OF INDIA 47,646 3.04 50,972 1.81
6 TATA STEEL LIMITED 37,915 2.42 29,694 1.06
7 TATA MOTORS LIMITED 29,227 1.86 35,547 1.26
8 OIL AND NATURAL GAS CORP. 28,686 1.83 186,990 6.65
9 TITAN INDUSTRIES LTD 24,458 1.56 3,713 0.13
10 TATA CONSULTANCY SERV LT 24,071 1.53 93,726 3.33
11 VIDESH SANCHAR NIGAM LTD 22,761 1.45 13,386 0.48
12 MARUTI UDYOG LIMITED 22,643 1.44 25,259 0.90
13 ITC LTD 22,214 1.42 73,282 2.60
14 SRF LTD 20,587 1.31 2,141 0.08
15 ICICI BANK LTD. 16,714 1.06 52,407 1.86
16 RANBAXY LABS LTD 15,441 0.98 16,104 0.57
17 STEEL AUTHORITY OF INDIA 15,438 0.98 34,344 1.22
18 SUZLON ENERGY LIMITED 13,740 0.88 37,442 1.33
19 LARSEN & TOUBRO LTD. 13,245 0.84 33,415 1.19
20 INDIAN PETROCHEMICALS COR 12,962 0.83 6,512 0.23
21 MCDOWELL & COMPANY LIMITE 12,821 0.82 4,253 0.15
22 HINDUSTAN LEVER LTD 12,243 0.78 59,875 2.13
23 WIPRO LTD 12,030 0.77 79,698 2.83
24 SESA GOA LTD 11,890 0.76 5,057 0.18
25 HDFC LTD 11,396 0.73 33,346 1.19
26 ASSOCIATED CEMENT CO LTD 10,589 0.67 14,527 0.52
27 NTPC LTD 9,648 0.61 110,572 3.93
28 RELIANCE ENERGY LTD 9,523 0.61 12,350 0.44
29 ZEE TELEFILMS LTD 9,267 0.59 9,859 0.35
30 MAHINDRA & MAHINDRA LTD 9,175 0.58 15,054 0.54
31 BHARTI TELE-VENTURES LTD 8,969 0.57 78,170 2.78
32 PUNJAB NATIONAL BANK 8,805 0.56 14,832 0.53
33 CENTURY TEXTILES LTD 8,758 0.56 4,138 0.15
34 BHEL 8,725 0.56 54,874 1.95
35 INDIABULLS FIN. SER. LTD. 8,502 0.54 4,094 0.15
36 BAJAJ AUTO LTD 8,391 0.53 27,788 0.99
37 HINDALCO INDUSTRIES LTD 8,120 0.52 21,187 0.75
38 INFRA. DEV. FIN. CO. LTD 7,999 0.51 7,476 0.27
39 INDUS DEV BANK OF IND LTD 7,987 0.51 5,667 0.20
40 GUJARAT AMBUJA CEMENT LTD 7,832 0.50 13,974 0.50
41 REL COMM VENTURES LTD 7,518 0.48 37,758 1.34
42 GAIL (INDIA) LTD 7,361 0.47 26,934 0.96
43 MAHANAGAR TELEPHONE NIGAM 7,180 0.46 11,573 0.41
44 HDFC BANK LTD 7,138 0.45 24,228 0.86
45 CIPLA LTD 6,979 0.44 19,859 0.71
46 SIEMENS LTD 6,796 0.43 18,805 0.67
47 ROLTA INDIA LTD 6,683 0.43 1,752 0.06
48 GATEWAY DISTRIPARKS LTD. 6,478 0.41 2,338 0.08
49 GRASIM INDUSTRIES LTD 6,450 0.41 18,907 0.67
50 I-FLEX SOLUTIONS LIMITED 6,400 0.41 10,097 0.36
Total 929,433 59.22 1,674,730 59.53

46
 Table 4-4: Market Capitalisation of Securities in the CM Segment
(In Rs. crore)
Month/Year Total MC MC of S&P Share in Total MC of CNX Share in Total
(end of period) CNX Nifty MC (%) Nifty Junior MC (%)
Mar-95 363,350 – – – –
Mar-96 401,459 139,357 34.71 – –
Mar-97 419,367 159,758 38.09 25,184 6.01
Mar-98 481,503 230,420 47.85 34,654 7.20
Mar-99 491,175 236,569 48.16 53,452 10.88
Mar-00 1,020,426 373,559 36.61 98,804 9.68
Apr-00 846,391 343,491 40.58 73,718 8.71
May-00 790,478 359,698 45.50 53,971 6.83
Jun-00 852,554 383,349 44.96 58,772 6.89
Jul-00 746,402 347,245 46.52 51,997 6.97
Aug-00 794,516 363,202 45.71 53,697 6.76
Sep-00 730,350 332,307 45.50 45,297 6.20
Oct-00 707,121 306,459 43.34 42,730 6.04
Nov-00 764,177 331,419 43.37 47,984 6.28
Dec-00 760,391 331,059 43.54 47,007 6.18
Jan-01 807,641 359,389 44.50 46,662 5.78
Feb-01 789,600 354,078 44.84 42,707 5.41
Mar-01 657,847 301,085 45.77 31,989 4.86
Apr-01 653,720 295,657 45.23 30,701 4.70
May-01 592,437 306,923 51.81 32,726 5.52
Jun-01 569,797 291,840 51.22 28,467 5.00
Jul-01 574,260 282,608 49.21 28,711 5.00
Aug-01 575,242 281,798 48.99 27,303 4.75
Sep-01 509,105 245,484 48.22 23,273 4.57
Oct-01 535,846 261,567 48.81 25,542 4.77
Nov-01 581,386 287,192 49.40 29,007 4.99
Dec-01 552,908 285,007 51.55 28,498 5.15
Jan-02 563,683 332,606 59.01 36,541 6.48
Feb-02 621,523 353,262 56.84 40,514 6.52
Mar-02 636,861 349,402 54.86 42,446 6.66
Apr-02 649,551 336,422 51.79 43,676 6.72
May-02 631,609 324,757 51.42 36,735 5.82
Jun-02 659,991 333,921 50.59 39,683 6.01
Jul-02 608,643 302,703 49.73 35,761 5.88
Aug-02 632,618 319,178 50.45 35,680 5.64
Sep-02 599,603 304,189 50.73 31,143 5.19
Oct-02 606,788 307,084 50.61 31,540 5.20
Nov-02 645,388 338,951 52.52 33,595 5.21
Dec-02 672,862 352,943 52.45 35,668 5.30
Jan-03 572,277 336,267 58.76 34,754 6.07
Feb-03 581,985 343,218 58.97 35,047 6.02
Mar-03 537,133 316,762 58.97 34,550 6.43
Apr-03 530,630 302,472 57.00 45,918 8.65
May-03 612,030 335,765 54.86 60,229 9.84
Jun-03 678,550 378,241 55.74 64,605 9.52
Jul-03 719,145 395,497 55.00 73,504 10.22
Aug-03 836,651 457,313 54.66 88,009 10.52
Sep-03 863,481 477,724 55.33 95,403 11.05
Oct-03 926,748 524,705 56.62 103,143 11.13
Nov-03 979,541 544,756 55.61 108,847 11.11
Dec-03 1,167,029 634,248 54.35 132,409 11.35
Jan-04 1,116,150 611,844 54.82 130,917 11.73
Feb-04 1,110,954 609,751 54.89 129,489 11.66
Mar-04 1,120,976 638,599 56.97 130,122 11.61
Apr-04 1,171,828 771,154 65.81 139636 11.92
May-04 950,494 632,652 66.56 104,708 11.02
Jun-04 979,700 642,325 65.56 107,211 10.94
Jul-04 1,066,087 698,209 65.49 114,185 10.71
Aug-04 1,143,075 698,427 61.10 118,520 10.37
Sep-04 1,227,550 747,280 60.88 129,944 10.59
Oct-04 1,253,825 765,067 61.02 129,254 10.31
Nov-04 1,446,292 839,857 58.07 144,221 9.97
Dec-04 1,579,161 902,831 57.17 165,444 9.99
Jan-05 1,557,444 893,674 57.38 157,825 10.84
Feb-05 1,614,597 978,440 60.60 168,860 10.20
Mar-05 1,585,585 951,672 60.02 164,668 10.39
Apr-05 1,517,908 888,639 58.54 156,196 10.29
May-05 1,654,995 977,445 59.06 169,627 10.25
Jun-05 1,727,502 1,040,264 60.22 172,284 9.97
Jul-05 1,848,740 1,083,537 58.61 193,242 10.45
Aug-05 1,957,491 1,118,077 57.12 198,555 10.14
Sep-05 2,098,263 1,227,424 58.50 208,551 9.94
Oct-05 1,927,645 1,119,365 58.07 185,707 9.63
Nov-05 2,166,823 1,254,781 57.91 206,702 9.54
Dec-05 2,322,392 1,350,394 58.15 218,575 9.41
Jan-06 2,434,395 1,399,294 57.48 232,925 9.57
Feb-06 2,512,083 1,434,266 57.09 245,269 9.76
Mar-06 2,813,201 1,590,155 56.52 274,823 9.77

47
 Table 4-5: Top '50' Companies by Market Capitalisation as on March 31, 2006

Rank Name of Company Market % Share in Trading Value % Share in

Capitalisation Total Market During 2005-06 Total
(Rs. crore) Capitalisation (Rs. crore) Trading
Value

1 OIL AND NATURAL GAS CORP. 186,990 6.65 28,686 1.83

2 RELIANCE INDUSTRIES LTD 110,833 3.94 138,737 8.84
3 NTPC LTD 110,572 3.93 9,648 0.61
4 TATA CONSULTANCY SERV LT 93,726 3.33 24,071 1.53
5 INFOSYS TECHNOLOGIES LTD 81,847 2.91 60,164 3.83
6 WIPRO LTD 79,698 2.83 12,030 0.77
7 BHARTI TELE-VENTURES LTD 78,170 2.78 8,969 0.57
8 ITC LTD 73,282 2.60 22,214 1.42
9 INDIAN OIL CORP LTD 68,259 2.43 2,890 0.18
10 HINDUSTAN LEVER LTD 59,875 2.13 12,243 0.78
11 BHEL 54,874 1.95 8,725 0.56
12 ICICI BANK LTD. 52,407 1.86 16,714 1.06
13 STATE BANK OF INDIA 50,972 1.81 47,646 3.04
14 REL COMM VENTURES LTD 37,758 1.34 7,518 0.48
15 SUZLON ENERGY LIMITED 37,442 1.33 13,740 0.88
16 TATA MOTORS LIMITED 35,547 1.26 29,227 1.86
17 STEEL AUTHORITY OF INDIA 34,344 1.22 15,438 0.98
18 LARSEN & TOUBRO LTD. 33,415 1.19 13,245 0.84
19 HDFC LTD 33,346 1.19 11,396 0.73
20 TATA STEEL LIMITED 29,694 1.06 37,915 2.42
21 BAJAJ AUTO LTD 27,788 0.99 8,391 0.53
22 SATYAM COMPUTER SERVICES 27,506 0.98 49,533 3.16
23 GAIL (INDIA) LTD 26,934 0.96 7,361 0.47
24 MARUTI UDYOG LIMITED 25,259 0.90 22,643 1.44
25 HDFC BANK LTD 24,228 0.86 7,138 0.45
26 HINDALCO INDUSTRIES LTD 23,458 0.83 8,120 0.52
27 HCL TECHNOLOGIES LTD 21,103 0.75 5,705 0.36
28 CIPLA LTD 19,859 0.71 6,979 0.44
29 STERLITE INDS (IND) LTD 19,558 0.70 2,591 0.17
30 NATIONAL ALUMINIUM CO LTD 18,920 0.67 3,009 0.19
31 GRASIM INDUSTRIES LTD 18,907 0.67 6,450 0.41
32 SIEMENS LTD 18,805 0.67 6,796 0.43
33 HERO HONDA MOTORS LTD 17,781 0.63 5,667 0.36
34 RANBAXY LABS LTD 16,104 0.57 15,441 0.98
35 SUN PHARMACEUTICALS IND. 15,946 0.57 1,834 0.12
36 MAHINDRA & MAHINDRA LTD 15,054 0.54 9,175 0.58
37 PUNJAB NATIONAL BANK 14,832 0.53 8,805 0.56
38 ASSOCIATED CEMENT CO LTD 14,527 0.52 10,589 0.67
39 GUJARAT AMBUJA CEMENT LTD 13,974 0.50 7,832 0.50
40 VIDESH SANCHAR NIGAM LTD 13,386 0.48 22,761 1.45
41 BHARAT PETROLEUM CORP LT 12,759 0.45 3,555 0.23
42 NEYVELI LIGNITE CORPORATI 12,558 0.45 1,181 0.08
43 ABB LTD. 12,410 0.44 3,284 0.21
44 RELIANCE ENERGY LTD 12,350 0.44 9,523 0.61
45 GLAXOSMITHKLINE PHARMA LT 12,302 0.44 1,538 0.10
46 MAHANAGAR TELEPHONE NIGAM 11,573 0.41 7,180 0.46
47 TATA POWER CO LTD 11,526 0.41 5,377 0.34
48 CANARA BANK 10,961 0.39 5,296 0.34
49 DR. REDDY'S LABORATORIES 10,889 0.39 5,428 0.35
50 HINDUSTAN PETROLEUM CORP 10,853 0.39 4,136 0.26

Total 1,855,162 65.94 784,532 49.98

48
 Table 4-6: Top '50' Companies by Trading Volume and Market Capitalisation at NSE
Item Trading Value
Amount (Rs. crore) % to total
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06
Manufacturing 124,779 28,426 11,193 328,918 345,095 397,609 9.85 6.05 2.03 37.66 41.81 43.01
Financial Services 17,559 4,917 14,204 116,436 124,008 167,785 1.39 1.05 2.57 13.33 15.02 18.15
F.M.C.G 32,438 13,258 4,463 19,426 17,438 42,278 2.56 2.82 0.81 2.22 2.11 4.57
I.T 957,159 312,851 412,781 271,119 161,476 198,626 75.56 66.58 74.71 31.04 19.56 21.49
Pharmaceuticals 21,085 22,538 9,560 22,962 22,881 22,420 1.66 4.80 1.73 2.63 2.77 2.43
Others 113,803 87,884 100,293 114,636 154,540 95,715 8.98 18.70 18.15 13.12 18.72 10.35
TOTAL 1,266,823 469,875 552,494 873,497 825,438 924,433 100.00 100.00 100.00 100.00 100.00 100.00

Item Market Capitalisation

Amount (Rs. crore) % to total
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06
Manufacturing 96,718 56,109 33,383 262,123 256,223 543,624 20.79 12.41 8.03 31.13 23.35 29.30
Financial Services 36,460 42,485 45,283 104,551 138,518 186,746 7.84 9.39 10.89 12.41 12.62 10.07
F.M.C.G 80,497 56,507 37,826 59,819 62,351 133,157 17.30 12.49 9.09 7.10 5.68 7.18
I.T 106,095 80,145 76,017 81,108 247,398 444,768 22.80 17.72 18.28 9.63 22.54 23.97
Pharmaceuticals 21,035 32,314 27,574 42,501 41,365 75,100 4.52 7.14 6.63 5.05 3.77 4.05
Others 124,502 184,720 195,827 292,056 351,583 471,767 26.76 40.84 47.08 34.68 32.04 25.43
TOTAL 465,306 452,280 415,910 842,158 1,097,438 1,855,162 100.00 100.00 100.00 100.00 100.00 100.00

F.M.C.G. Fast Moving Consumer Goods

I.T. Information Technology

49
 Table 4-7: Composition of S&P CNX Nifty Index as on March 31, 2006
Sl. Name of Security Market Weightage Beta R2 Volatility Return Impact
No. Capitalisation (%) (%) (%) Cost
(Rs. crore) (%) #
1 ABB 12,410 0.01 0.51 0.09 1.53 14.98 0.07
2 ACC 14,527 0.01 0.76 0.22 2.80 24.89 0.05
3 BAJAJAUTO 27,788 0.02 0.79 0.21 1.60 5.57 0.07
4 BHARTI 78,170 0.05 1.00 0.30 2.23 14.32 0.11
5 BHEL 54,874 0.03 1.02 0.30 1.97 10.60 0.09
6 BPCL 12,759 0.01 0.48 0.08 1.32 (2.34) 0.10
7 CIPLA 19,859 0.01 0.72 0.16 1.45 19.94 0.07
8 DABUR 7,109 0.00 0.93 0.18 2.21 12.32 0.11
9 DRREDDY 10,889 0.01 0.70 0.13 2.26 8.83 0.09
10 GAIL 26,934 0.02 0.94 0.32 1.59 16.75 0.09
11 GLAXO 12,302 0.01 0.66 0.16 1.69 10.40 0.11
12 GRASIM 18,907 0.01 0.76 0.23 1.57 18.35 0.07
13 GUJAMBCEM 13,974 0.01 0.85 0.21 1.98 16.99 0.08
14 HCLTECH 21,103 0.01 1.12 0.30 2.28 7.25 0.11
15 HDFC 33,346 0.02 0.81 0.19 1.71 (2.11) 0.08
16 HDFCBANK 24,228 0.02 0.72 0.19 1.41 5.03 0.08
17 HEROHONDA 17,781 0.01 0.76 0.18 1.29 0.13 0.08
18 HINDALCO 21,187 0.01 1.15 0.39 2.58 19.14 0.09
19 HINDLEVER 59,875 0.04 0.90 0.23 1.87 11.61 0.08
20 HINDPETRO 10,853 0.01 0.57 0.14 1.01 (1.19) 0.11
21 ICICIBANK 52,407 0.03 1.09 0.30 1.14 (4.26) 0.09
22 INFOSYSTCH 81,847 0.05 1.04 0.43 1.63 5.39 0.05
23 IPCL 6,512 0.00 1.05 0.32 1.45 13.06 0.08
24 ITC 73,282 0.05 0.90 0.28 1.93 13.16 0.08
25 JETAIRWAYS 8,484 0.01 0.61 0.11 1.70 0.16 0.09
26 LT 33,415 0.02 0.90 0.22 1.84 1.49 0.07
27 MARUTI 25,259 0.02 1.05 0.31 2.37 6.28 0.06
28 M&M 15,054 0.01 0.88 0.27 1.96 6.59 0.07
29 MTNL 11,573 0.01 0.92 0.20 2.72 28.78 0.09
30 NATIONALUM 18,920 0.01 1.14 0.30 2.34 5.14 0.13
31 ONGC 186,990 0.12 1.03 0.43 1.53 15.40 0.09
32 ORIENTBANK 5,880 0.00 0.71 0.17 1.32 (2.19) 0.09
33 PNB 14,832 0.01 1.01 0.34 1.37 6.40 0.08
34 RANBAXY 16,104 0.01 0.88 0.16 2.84 0.66 0.07
35 REL 12,350 0.01 1.02 0.33 1.44 (1.38) 0.08
36 RELIANCE 110,833 0.07 1.03 0.48 1.05 12.20 0.05
37 SAIL 34,344 0.02 1.43 0.29 4.33 30.43 0.09
38 SATYAMCOMP 27,506 0.02 1.24 0.41 1.89 10.24 0.05
39 SBIN 50,972 0.03 1.00 0.41 1.28 10.37 0.05
40 SCI 4,788 0.00 0.57 0.13 1.49 12.84 0.10
41 SUNPHARMA 15,946 0.01 0.61 0.13 2.20 10.50 0.10
42 TATACHEM 5,671 0.00 0.66 0.14 1.87 11.08 0.07
43 TATAPOWER 11,526 0.01 1.08 0.36 2.00 13.93 0.07
44 TATATEA 4,874 0.00 0.67 0.20 1.04 (6.73) 0.07
45 TATAMOTORS 35,547 0.02 1.17 0.34 2.13 14.17 0.06
46 TCS 93,726 0.06 1.06 0.39 1.77 12.62 0.07
47 TATASTEEL 29,694 0.02 1.19 0.40 2.14 24.48 0.06
48 VSNL 13,386 0.01 1.54 0.28 2.91 28.70 0.07
49 WIPRO 79,698 0.05 1.28 0.47 2.16 7.54 0.08
50 ZEETELE 9,859 0.01 0.93 0.12 3.96 35.33 0.10
Total 1,590,155 1 1.00 -- 1.04 10.66 0.08

* Beta & R2 are calculated for the period April 1, 2004 to March 31, 2005. Beta measures the degree to which any portfolio of
stocks is affected as compared to the effect on the market as a whole. The coefficient of determination (R2) measures the
strength of relationship between two variables the return on a security versus that of the market.
* Volatility is the standard deviation of the daily returns for the period April 1, 2005 to March 31, 2006.
* Last day of trading was March 31, 2006
* Figures in brackets indicate negative values.
* Returns are calculated considering the close prices of the last trading day of March 2005 and March 2006. Returns for TCS
is for the period August 2004 to March 2005.
* Impact Cost for S&P CNX Nifty is for a portfolio of Rs. 50 lakhs and is for the period October 2004 to March 2005.

50
 Table 4-8: Composition of CNX NIFTY Junior Index - as on March 31, 2006
Sl. Name of Security Market Weightage Beta R2 Volatility Return Impact
No. Capitalisation (%) (%) (%) Cost
(Rs. crore) (%) #
1 ANDHRABANK 3,916 0.01 1.18 0.45 0.88 (7.87) 0.09
2 APOLLOTYRE 1,115 0.00 0.46 0.10 1.17 (2.82) 0.20
3 ASHOKLEY 4,861 0.02 1.06 0.29 2.95 4.81 0.10
4 ASIANPAINT 6,220 0.02 0.38 0.09 1.77 (3.51) 0.27
5 AUROPHARMA 3,639 0.01 0.83 0.14 1.93 22.94 0.13
6 AVENTIS 4,445 0.02 0.63 0.18 1.93 6.05 0.29
7 BANKBARODA 8,461 0.03 1.46 0.52 1.52 3.34 0.09
8 BANKINDIA 6,509 0.02 1.84 0.52 1.59 (0.52) 0.11
9 BEL 10,593 0.04 0.99 0.31 2.31 20.37 0.12
10 BHARATFORG 9,820 0.04 1.08 0.39 1.66 6.86 0.11
11 BIOCON 4,455 0.02 0.37 0.07 0.97 (8.06) 0.12
12 BONGAIREFN 1,312 0.00 0.76 0.23 2.06 (4.02) 0.11
13 CADILAHC 4,244 0.02 0.45 0.10 2.31 26.17 0.17
14 CANBK 10,961 0.04 1.39 0.42 2.67 (6.60) 0.13
15 CHENNPETRO 3,284 0.01 0.97 0.26 1.50 (1.78) 0.15
16 RELCAPITAL 10,567 0.04 1.34 0.21 2.61 3.71 0.06
17 COCHINREFN 2,403 0.01 0.63 0.17 1.26 (1.45) 0.18
18 CORPBANK 5,498 0.02 1.13 0.31 2.41 13.69 0.14
19 CUMMINSIND 4,713 0.02 1.05 0.24 2.61 5.50 0.11
20 GESHIPPING 4,980 0.02 0.77 0.16 1.95 6.56 0.10
21 CONCOR 9,394 0.03 0.38 0.06 1.53 (0.07) 0.42
22 I-FLEX 10,097 0.04 0.82 0.20 2.50 24.82 0.12
23 IBP 1,254 0.00 0.46 0.11 0.94 1.88 0.22
24 IDBI 5,667 0.02 1.42 0.41 1.78 (6.56) 0.11
25 IFCI 690 0.00 1.54 0.27 4.27 (1.37) 0.27
26 INGERRAND 1,257 0.00 0.51 0.07 3.35 4.69 0.19
27 IOB 5,271 0.02 1.20 0.33 1.32 (4.68) 0.14
28 JPASSOCIAT 8,745 0.03 1.18 0.22 2.73 5.64 0.11
29 KOTAKBANK 8,637 0.03 1.05 0.20 2.90 21.78 0.15
30 LICHSGFIN 1,612 0.01 0.93 0.29 1.14 (5.41) 0.09
31 LUPIN 4,070 0.01 0.62 0.12 2.09 8.19 0.16
32 MOSERBAER 2,550 0.01 0.67 0.14 1.05 3.51 0.17
33 MPHASISBFL 3,354 0.01 0.85 0.19 3.21 20.07 0.13
34 NICOLASPIR 5,434 0.02 0.92 0.24 1.56 9.66 0.15
35 NIRMA 3,999 0.01 0.77 0.18 2.03 3.39 0.26
36 PATNI 6,314 0.02 0.83 0.23 1.89 (2.14) 0.12
37 PFIZER 3,443 0.01 0.56 0.11 2.38 14.39 0.21
38 POLARIS 1,150 0.00 1.34 0.28 2.82 7.19 0.10
39 PUNJABTRAC 1,535 0.01 0.51 0.11 2.07 7.95 0.18
40 RAYMOND 3,177 0.01 0.61 0.14 2.08 18.58 0.13
41 SIEMENS 18,805 0.07 0.88 0.22 2.54 25.56 0.08
42 STER 19,558 0.07 1.19 0.30 2.69 31.92 0.16
43 SYNDIBANK 4,690 0.02 1.21 0.31 1.73 (3.80) 0.10
44 TTML 3,619 0.01 0.99 0.25 2.23 (3.84) 0.14
45 TVSMOTOR 3,336 0.01 0.99 0.23 2.43 17.14 0.16
46 UNIONBANK 6,142 0.02 1.21 0.40 1.74 (0.49) 0.11
47 UTIBANK 9,922 0.04 1.01 0.23 2.74 8.70 0.12
48 VIJAYABANK 2,269 0.01 1.13 0.42 1.35 (8.48) 0.12
49 INGVYSYABK 1,295 0.00 0.74 0.19 1.65 (3.61) 0.18
50 WOCKPHARMA 5,538 0.02 1.05 0.32 1.89 (1.48) 0.10
Total 274,823 100 1.00 - 1.13 7.47 0.14

* Beta & R2 are calculated for the period April 1, 2005 to March 31, 2006. Beta measures the degree to which any portfolio of
stocks is affected as compared to the effect on the market as a whole. The coefficient of determination (R2) measures the
strength of relationship between two variables the return on a security versus that of the market.
* Volatility is the standard deviation of the daily returns for the period April 1, 2005 to March 31, 2006.
* Last day of trading was March 31, 2006
* Figures in brackets indicate negative values.
* Returns are calculated considering the close prices of the last trading day of March 2005 and March 2006.
* Impact Cost for CNX Nifty Junior is for a portfolio of Rs. 25 lakhs and is for the period October 2005 to March 2006.

51
52
Table 4-9: Industry-wise Weightages of S&P CNX NIFTY Securities
Sl. Industry As on 31-3-2001 As on 31-3-2002 As on 31-3-2003 As on 31-3-2004 As on 31-3-2005 As on 31-3-2006
No. Market Weightage Market Weightage Market Weightage Market Weightage Market Weightage Market Weightage
Cap (%) Cap (%) Cap (%) Cap (%) Cap (%) Cap (%)
(Rs. cr.) (Rs. cr.) (Rs. cr.) (Rs. cr.) (Rs. cr.) (Rs. cr.)

1 Computers - Software 37,744 12.54 75,495 21.61 67,810 21.41 83,945 13.15 201,787 21.20 303,881 19.11
2 Diversified 56,626 18.81 57,482 16.45 38,350 12.11 50,563 7.92 32,306 3.39 59,875 3.77

3 Refineries 27,643 9.18 23,306 6.67 16,662 5.26 31,587 4.95 20,933 2.20 134,445 8.45
4 Petrochemicals 42,409 14.09 33,731 9.65 40,913 12.92 79,650 12.47 80,114 8.42 6,512 0.41

5 Pharmaceuticals 19,358 6.43 31,065 8.89 28,270 8.92 42,501 6.66 47,021 4.94 75,100 4.72

6 Banks 16,903 5.60 21,724 6.22 30,259 9.55 66,739 10.45 99,818 10.49 148,319 9.33
7 Cigarettes 19,977 6.63 17,098 4.89 15,550 4.91 25,832 4.05 33,305 3.50 73,282 4.61

8 Telecommunication - Services 8,344 2.77 9,245 2.65 8,130 2.57 42,801 6.7 50,850 5.34 103,129 6.49

9 Financial Institution 6,931 2.30 4,775 1.37 0 0.00 0 0.00 0 0.00 0 0.00
10 Automobiles - 2 & 3 Wheelers 5,442 1.80 11,443 3.28 8,615 2.72 19,013 2.98 21,892 2.30 45,569 2.87
 Table 4-10: S&P CNX NIFTY Index*
Month & Year Open High Low Close Volatility Price To
(%) Earning Ratio#
1995-96 (Nov.-Mar.) 1000.00 1067.49 813.12 985.30 1.62 --
1996-97 988.33 1203.11 775.43 968.30 1.67 --
1997-98 931.95 1297.10 929.05 1116.90 1.52 --
1998-99 1117.15 1247.15 800.10 1078.05 1.86 16.53
Apr-99 1082.55 1084.05 916.00 978.20 3.26 15.02
May-99 979.80 1201.30 968.25 1132.30 2.02 18.01
Jun-99 1125.55 1228.55 1099.85 1187.70 1.35 17.91
Jul-99 1187.85 1367.95 1179.30 1310.15 1.59 19.94
Aug-99 1309.85 1435.50 1277.85 1412.00 1.39 21.40
Sep-99 1412.05 1432.55 1329.70 1413.10 1.31 21.96
Oct-99 1414.65 1522.85 1296.70 1325.45 2.05 20.65
Nov-99 1325.90 1418.15 1239.80 1376.15 1.68 21.47
Dec-99 1375.05 1510.85 1374.70 1480.85 1.42 24.09
Jan-00 1482.15 1671.15 1482.15 1546.20 2.55 25.16
Feb-00 1546.20 1818.15 1521.40 1654.80 1.84 26.36
Mar-00 1661.50 1773.85 1489.10 1528.45 1.98 24.60
1999-2000 1082.55 1818.15 916.00 1528.45 1.93 24.60
Apr-00 1528.70 1636.95 1311.30 1406.55 3.51 21.10
May-00 1410.00 1436.60 1201.50 1380.45 2.64 22.96
Jun-00 1380.40 1539.10 1345.10 1471.45 1.48 22.94
Jul-00 1473.45 1564.75 1269.25 1332.85 1.76 20.71
Aug-00 1332.85 1398.90 1295.45 1394.10 4.62 20.97
Sep-00 1395.95 1482.00 1249.35 1271.65 2.04 19.32
Oct-00 1270.75 1306.45 1108.20 1172.75 1.59 17.74
Nov-00 1178.25 1281.00 1177.10 1268.15 1.44 19.22
Dec-00 1268.10 1369.50 1207.95 1263.55 1.41 19.20
Jan-01 1263.50 1396.05 1248.55 1371.70 1.20 22.22
Feb-01 1371.50 1362.25 1294.60 1351.40 1.58 20.24
Mar-01 1351.40 1399.55 1098.75 1148.20 2.90 17.21
2000-01 1528.70 1636.95 1098.75 1148.20 1.98 17.21
Apr-01 1148.10 1171.85 1000.10 1125.25 2.20 14.57
May-01 1125.45 1207.00 1096.25 1167.90 0.89 15.80
Jun-01 1168.10 1175.80 1060.05 1107.90 1.27 15.76
Jul-01 1108.35 1127.15 1046.90 1072.85 1.01 15.15
Aug-01 1073.00 1084.00 1051.75 1053.75 0.57 15.10
Sep-01 1054.65 1059.90 849.95 913.85 2.52 13.16
Oct-01 914.65 1000.95 884.65 971.90 0.99 13.79
Nov-01 973.55 1097.60 973.55 1067.15 1.25 15.46
Dec-01 1067.20 1132.65 1010.45 1059.05 1.22 15.35
Jan-02 1058.85 1121.75 1052.05 1075.40 0.99 16.99
Feb-02 1076.95 1205.95 1069.40 1142.05 1.48 18.38
Mar-02 1142.05 1201.10 1117.85 1129.55 1.18 18.10
2001-02 1148.10 1207.00 849.95 1129.55 1.40 18.10
Apr-02 1129.85 1153.30 1073.30 1084.50 1.11 17.86
May-02 1084.80 1136.55 1020.10 1028.80 1.35 16.19
Jun-02 1029.25 1102.05 1029.25 1057.80 1.13 15.73
Jul-02 1058.00 1087.40 943.60 958.90 1.01 14.30
Aug-02 959.20 1012.75 935.55 1010.60 0.85 15.04
Sep-02 1010.90 1024.65 960.20 963.15 0.72 14.33
Oct-02 961.15 983.60 920.10 951.40 0.84 14.47
Nov-02 951.45 1057.40 946.40 1050.15 0.70 14.24
Dec-02 1050.15 1103.95 1034.10 1093.50 0.97 14.83
Jan-03 1093.60 1105.60 1026.20 1041.85 0.80 14.13
Feb-03 1040.25 1075.50 1034.10 1063.40 0.89 14.42
Mar-03 1063.55 1070.85 974.10 978.20 1.09 13.36
2002-03 1129.85 1153.30 920.10 978.20 0.99 13.36
Apr-03 977.40 1033.45 920.00 934.05 1.38 13.14
May-03 930.90 1013.85 930.80 1006.80 0.74 11.65
Jun-03 1006.85 1141.30 1004.70 1134.15 0.94 12.95
Jul-03 1133.95 1198.50 1089.30 1185.85 1.04 12.84
Aug-03 1185.80 1365.80 1164.75 1356.55 1.52 14.95
Sep-03 1356.70 1430.70 1285.25 1417.10 1.81 15.43
Oct-03 1416.60 1574.10 1407.95 1555.90 1.52 17.15
Nov-03 1556.50 1630.25 1509.15 1615.25 1.30 17.81
Dec-03 1615.85 1914.40 1615.70 1879.75 0.96 20.73
Jan-04 1880.35 2014.65 1756.25 1809.75 2.18 19.96
Feb-04 1809.30 1935.80 1755.65 1800.30 1.69 19.74
Mar-04 1798.35 1898.70 1669.70 1771.90 1.48 20.70
2003-04 977.40 2014.65 920.00 1771.90 1.43 20.70
Contd...
53
 Contd...

Table 4-10: S&P CNX NIFTY Index*

Month & Year Open High Low Close Volatility Price To
(%) Earning Ratio#
Apr-04 1771.45 1912.35 1771.45 1796.10 1.40 18.68
May-04 1796.10 1837.95 1292.20 1483.60 4.21 11.94
Jun-04 1483.90 1566.50 1437.90 1505.60 1.46 12.64
Jul-04 1506.65 1638.70 1472.55 1632.30 1.29 13.63
Aug-04 1631.55 1658.90 1573.70 1631.75 0.99 13.64
Sep-04 1631.70 1760.80 1619.90 1745.50 0.83 14.59
Oct-04 1744.40 1829.45 1737.85 1786.90 0.97 14.93
Nov-04 1787.30 1963.80 1776.70 1958.80 0.68 16.39
Dec-04 1960.75 2088.45 1944.50 2080.50 0.74 15.32
Jan-05 2080.00 2120.15 1894.40 2057.60 1.67 14.68
Feb-05 2057.75 2110.15 2036.60 2103.25 0.78 15.02
Mar-05 2103.10 2183.45 1971.15 2035.65 1.08 14.60
2004-05 1771.45 2183.45 1292.20 2035.65 1.61 14.60
Apr-05 2035.90 2084.90 1896.30 1902.50 1.23 13.27
May-05 1903.10 2099.35 1898.15 2087.55 0.67 13.94
Jun-05 2087.80 2226.15 2061.35 2220.60 0.73 14.31
Jul-05 2220.45 2332.55 2171.25 2312.30 0.93 14.10
Aug-05 2312.05 2426.65 2294.25 2384.65 0.98 14.78
Sep-05 2384.70 2633.90 2382.90 2601.40 1.19 16.15
Oct-05 2601.00 2669.20 2307.45 2370.95 1.51 14.23
Nov-05 2366.80 2727.05 2366.80 2652.25 0.95 15.95
Dec-05 2651.60 2857.00 2641.95 2836.55 1.13 17.16
Jan-06 2836.80 3005.10 2783.85 3001.10 0.93 17.90
Feb-06 3001.30 3090.30 2928.10 3074.70 0.81 18.27
Mar-06 3074.60 3433.85 3064.00 3402.55 0.93 20.26
2005-06 2035.90 3433.85 1896.30 3402.55 1.04 20.26
* S&P CNX Nifty commenced from November 3, 1995.
# At the end of period.
Note: Volatility is the standard deviation of daily returns for the respective month/year.

Table 4-11: CNX NIFTY Junior Index*

Month & Year Open High Low Close Volatility Price To
(%) Earning Ratio#
1996-97 (Nov.-Mar.) 1000.00 1208.87 907.02 1032.95 1.76 --
1997-98 1028.30 1395.25 1016.65 1339.40 1.44 --
1998-99 1339.75 2079.10 1177.20 2069.20 2.14 18.92
Apr-99 2099.75 2103.15 1631.90 1809.00 3.45 16.54
May-99 1819.40 2063.00 1786.10 1968.45 2.06 17.22
Jun-99 1961.40 2020.50 1847.35 1955.60 1.24 15.47
Jul-99 1955.85 2278.75 1927.45 2227.65 1.87 17.79
Aug-99 2227.15 2579.85 2196.30 2524.40 1.59 20.05
Sep-99 2525.20 2860.80 2431.45 2763.60 1.59 22.10
Oct-99 2760.30 3122.75 2552.25 2588.55 2.94 20.83
Nov-99 2591.10 3062.25 2308.35 3057.45 2.31 28.13
Dec-99 3135.75 4004.85 3027.45 3983.80 2.05 36.65
Jan-00 3998.25 4579.35 3721.30 4351.90 3.34 39.71
Feb-00 4353.30 5365.90 4353.30 4447.25 2.57 40.36
Mar-00 4446.45 5065.65 3569.90 3695.75 3.27 33.47
1999-2000 2099.75 5365.90 1631.90 3695.75 2.46 33.47
Apr-00 3720.45 3771.80 2572.65 2788.65 4.54 25.16
May-00 2780.95 2870.00 2059.20 2448.70 4.37 15.45
Jun-00 2444.65 2989.50 2424.55 2672.45 2.11 17.21
Jul-00 2687.30 2812.50 2348.00 2464.95 2.02 15.16
Aug-00 2472.40 2612.65 2284.75 2548.25 1.07 16.35
Sep-00 2552.10 2855.85 2346.55 2369.30 2.77 14.62
Oct-00 2366.00 2393.90 2054.05 2234.30 2.30 13.66
Nov-00 2249.65 2516.70 2238.75 2477.25 1.82 15.22
Dec-00 2467.45 2737.70 228.10 2426.05 2.35 14.90
Jan-01 2424.60 2555.75 2282.85 2407.70 1.67 14.79
Feb-01 2400.90 2158.55 2023.10 2141.45 2.41 12.94
Mar-01 2141.45 2258.75 1570.20 1601.80 3.35 9.69
2000-01 3720.45 3771.80 1570.20 1601.80 2.75 9.69
Contd...
54
 Contd...

Table 4-11: CNX NIFTY Junior Index*

Month & Year Open High Low Close Volatility Price To
(%) Earning Ratio#
Apr-01 1601.80 1638.05 1362.50 1525.20 2.62 8.47
May-01 1529.05 1676.25 1472.40 1627.15 1.20 8.61
Jun-01 1627.55 1638.90 1397.60 1415.40 1.30 8.68
Jul-01 1416.45 1438.25 1304.25 1342.55 1.17 7.14
Aug-01 1341.90 1370.25 1275.20 1277.35 0.58 6.79
Sep-01 1278.25 1292.00 1038.75 1084.40 2.68 5.90
Oct-01 1083.70 1206.65 1044.90 1174.20 0.99 6.13
Nov-01 1174.15 1376.75 1173.35 1334.15 0.96 5.95
Dec-01 1335.45 1415.85 1215.45 1298.30 1.86 5.84
Jan-02 1298.60 1358.55 1273.80 1348.55 0.91 5.28
Feb-02 1350.60 1617.05 1350.60 1495.55 2.14 6.54
Mar-02 1496.40 1611.20 1489.25 1566.95 1.11 6.80
2001-02 1601.40 1676.25 1038.75 1566.95 1.60 6.80
Apr-02 1568.40 1658.50 1564.15 1607.75 0.95 7.35
May-02 1608.25 1665.15 1448.35 1497.10 1.74 8.56
Jun-02 1497.90 1682.00 1497.90 1617.40 1.35 8.26
Jul-02 1617.40 1690.35 1429.05 1455.85 1.47 7.44
Aug-02 1455.75 1517.35 1433.05 1452.60 1.03 7.42
Sep-02 1453.45 1468.85 1255.20 1257.85 1.35 6.48
Oct-02 1256.95 1321.00 1231.95 1255.30 1.03 6.56
Nov-02 1255.60 1340.85 1243.15 1337.10 0.63 11.55
Dec-02 1337.60 1435.20 1337.20 1413.05 1.13 12.26
Jan-03 1413.25 1462.90 1353.75 1376.85 1.05 11.95
Feb-03 1377.20 1415.65 1333.75 1387.10 1.21 12.05
Mar-03 1401.00 1409.30 1255.35 1259.55 1.15 11.68
2002-03 1568.40 1690.35 1231.95 1259.55 1.23 11.68
Apr-03 1260.75 1370.80 1259.75 1339.75 1.16 16.37
May-03 1342.75 1693.15 1340.25 1664.15 1.21 20.36
Jun-03 1605.50 1804.60 1598.60 1783.70 1.46 8.39
Jul-03 1787.25 2056.85 1778.20 2012.30 1.48 9.48
Aug-03 2014.95 2287.60 1959.50 2275.25 1.66 10.46
Sep-03 2279.30 2459.35 2188.45 2456.95 1.65 11.34
Oct-03 2460.85 2679.80 2448.00 2656.15 1.65 12.26
Nov-03 2671.60 2807.05 2603.95 2801.20 1.13 12.93
Dec-03 2823.50 3451.40 2816.80 3405.70 1.02 15.73
Jan-04 3421.40 3702.60 3234.00 3367.65 2.55 15.56
Feb-04 3371.60 3632.10 3193.80 3330.60 1.78 15.35
Mar-04 3340.00 3488.95 3064.10 3392.05 1.55 11.93
2003-04 1260.75 3702.60 1259.75 3392.05 1.57 11.93
Apr-04 3398.00 3875.55 3398.00 3639.80 1.56 12.9
May-04 3643.80 3756.65 2493.70 2846.90 4.90 7.84
Jun-04 2898.45 3018.40 2723.50 2903.35 1.39 7.94
Jul-04 29921.30 3162.85 2804.75 3082.10 1.18 8.13
Aug-04 3088.05 3206.15 3006.70 3199.00 0.94 8.42
Sep-04 3204.55 3543.60 3204.55 3504.25 0.76 9.23
Oct-04 3512.05 3653.40 3403.70 3481.55 0.89 9.18
Nov-04 3480.40 3913.60 3466.65 3884.55 0.86 10.23
Dec-04 3896.25 4468.35 3849.05 4453.30 0.96 14.19
Jan-05 4483.65 4549.85 3999.75 4247.80 1.92 12.93
Feb-05 4249.70 4427.45 4213.95 4388.20 0.85 14.17
Mar-05 4381.00 4705.25 4113.40 4275.15 1.36 13.82
2004-05 3398.00 4705.25 2493.70 4275.15 1.83 13.82
Apr-05 4275.35 4413.40 4016.85 4024.40 1.17 13.21
May-05 4039.85 4369.05 3998.80 4364.55 0.84 14.42
Jun-05 4374.50 4573.05 4351.25 4393.25 0.77 13.89
Jul-05 4398.35 4991.50 4396.15 4919.10 1.01 15.30
Aug-05 4904.45 5173.05 4786.45 5053.00 1.15 15.86
Sep-05 5068.90 5419.90 4955.75 5303.50 1.56 16.65
Oct-05 5338.00 5443.40 4609.15 4714.45 1.37 14.63
Nov-05 4787.50 5383.20 4690.90 5242.00 0.88 16.18
Dec-05 5269.40 5591.45 5222.90 5541.45 1.22 17.11
Jan-06 5555.90 5980.50 5543.45 5882.90 1.18 17.66
Feb-06 5902.10 6132.40 5758.80 5966.65 1.03 18.06
Mar-06 6279.00 6437.40 5938.55 6412.10 0.95 20.25
2005-06 4275.35 6437.40 3998.80 6412.10 0.95 20.25
* CNX Nifty Junior commenced from November 4, 1996.
# At the end of period.
Note: Volatility is the sandard deviation of daily returns for the respective month/year.

55
 Chart 4-2: Movement of Sectoral Indices: 2005-06

Table 4-12: Settlement Cycle in CM Segment

Activity T+2 Rolling Settlement
Trading T
Custodial Confirmation T+1
Determination of Obligation T+1
Securities/Funds Pay-in T+2
Securities/Funds Pay-out T+2
Valuation Debit T+2
Auction T+3
Bad Delivery Reporting T+4
Auction Pay-in/Pay-out T+5
Close Out T+5
Rectified Bad Delivery Pay-in/Pay-out T+6
Re-bad Delivery Reporting T+8
Close Out of Re-bad Delivery T+9

T+1 means one working day after the trade day. Other T+ terms have similar meanings.

56
 Table 4-13: Settlement Statistics in CM Segment
Month/ No. of Traded Quantity % of Trading Value of % of Securities Short % of Unrectified % of Funds
Year Trades Quantity of Shares Shares Volume Shares Deliverable Pay-in Delivery Short Bad Unrectified Pay-in
(lakh) (lakh.) Deliverable Deliverable (Rs. crore) Deliverable to Value (Rs. crore) (Auctioned Delivery Delivery Bad (Rs.
(lakh) to Total (Rs. crore) of Shares quantity) to Total (Auctioned Delivery crore)
Shares Traded (lakh) Deliverable quantity) to
Traded (lakh) Deliverable
Nov 94-Mar 95 3.0 1,330 688 51.73 1,728 898 51.97 611 5.9 0.85 1.76 0.26 300
1995-96 64 39,010 7,264 18.62 65,742 11,775 17.91 5,805 179 2.46 32.17 0.44 3,258
1996-97 262 134,317 16,453 12.25 292,314 32,640 11.17 13,790 382 2.32 66.25 0.40 7,212
1997-98 383 135,217 22,051 16.31 370,010 59,775 16.15 21,713 333 1.51 72.90 0.33 10,827
1998-99 550 165,310 27,991 16.93 413,573 66,204 16.01 30,755 305 1.09 69.73 0.25 12,175
1999-00 958 238,605 48,713 20.42 803,050 82,607 10.29 79,783 635 1.30 110.13 0.23 27,992
2000-01 1,614 304,196 50,203 16.50 1,263,898 106,277 8.41 94,962 339 0.68 11.58 0.023 45,937
Apr-01 87 16,323 5,643 34.57 28,226 6,083 21.55 5,214 16 0.28 0.043 0.0008 1,915
May-01 155 27,764 6,428 23.15 51,835 7,371 14.22 3,752 15 0.24 0.019 0.0003 1,976
Jun-01 127 22,797 5,134 22.52 43,136 5,960 13.82 4,058 14 0.27 0.010 0.0002 1,626
Jul-01 97 13,149 2,971 22.59 29,092 3,721 12.79 4,020 21 0.70 0.002 0.0001 1,830
Aug-01 111 15,512 3,018 19.46 28,572 3,962 13.87 3,531 31 1.03 0.003 0.0001 1,847
Sep-01 124 16,554 3,136 18.94 33,718 3,933 11.66 3,807 16 0.51 0.000 0.0000 2,068
Oct-01 145 19,775 3,485 17.62 35,225 4,247 12.06 4,136 40 1.15 0.000 0.0000 1,954
Nov-01 142 22,647 4,865 21.48 37,471 5,679 15.16 5,468 46 0.95 0.000 0.0000 2,311
Dec-01 168 29,221 5,929 20.29 53,098 7,184 13.53 6,924 48 0.81 0.000 0.0000 3,035
Jan-02 225 38,325 5,729 14.95 71,329 7,940 11.13 7,849 39 0.68 0.000 0.0000 3,440
Feb-02 170 26,866 6,600 24.57 48,823 7,982 16.35 7,935 39 0.59 0.000 0.0000 3,016
Mar-02 169 25,762 6,360 24.69 47,596 7,703 16.18 7,658 40 0.62 0.000 0.0000 3,030
2001-2002 1,720 274,695 59,299 21.59 508,121 71,766 14.12 64,353 364 0.61 0.08 0.0001 28,048
Apr-02 204 30,113 7,513 24.95 56,130 8,933 15.91 8,856 61 0.81 0.00 0.0000 3,216
May-02 211 33,785 8,317 24.62 53,414 8,732 16.35 8,676 55 0.66 0.00 0.0000 3,162
Jun-02 195 39,137 10,232 26.14 46,334 8,000 17.27 7,955 64 0.62 0.00 0.0000 2,728
Jul-02 206 36,835 10,348 28.09 50,262 8,407 16.73 8,358 69 0.67 0.00 0.0000 2,942
Aug-02 193 26,822 5,085 18.96 45,443 5,312 11.69 5,275 30 0.59 0.00 0.0000 2,152
Sep-02 183 25,254 4,433 17.55 46,894 5,271 11.24 5,235 25 0.56 0.00 0.0000 2,336
Oct-02 201 26,591 4,601 17.30 51,382 5,734 11.16 5,704 21 0.46 0.00 0.0000 2,599
Nov-02 174 23,070 4,433 19.22 50,171 6,452 12.86 6,411 23 0.52 0.00 0.0000 2,635
Dec-02 223 33,765 7,573 22.43 63,872 8,859 13.87 8,823 35 0.46 0.00 0.0000 3,391
Jan-03 231 35,017 8,152 23.28 62,815 9,169 14.60 9,128 38 0.47 0.00 0.0000 3,355
Feb-03 193 28,590 6,033 21.10 48,717 6,737 13.83 6,709 23 0.38 0.00 0.0000 2,644
Mar-03 182 26,424 5,633 21.32 46,134 6,350 13.76 6,317 25 0.44 0.00 0.0000 2,932
2002-03 2,397 365,403 82,353 22.54 621,569 87,956 14.15 87,447 469 0.57 0.00 0.0000 34,092
Apr-03 214 32,488 7,830 24.10 51,159 8,328 16.28 8,275 87 1.11 0.00 0.00 3,783
May-03 240 40,500 10,887 26.88 51,720 9,907 19.15 9,856 64 0.59 0.00 0.00 3,584
Jun-03 253 50,054 14,030 28.03 57,524 12,539 21.80 12,481 78 0.55 0.00 0.00 4,292
Contd...

57
58
Contd...

Table 4-13: Settlement Statistics in CM Segment

Month/ No. of Traded Quantity % of Trading Value of % of Securities Short % of Unrectified % of Funds
Year Trades Quantity of Shares Shares Volume Shares Deliverable Pay-in Delivery Short Bad Unrectified Pay-in
(lakh) (lakh.) Deliverable Deliverable (Rs. crore) Deliverable to Value (Rs. crore) (Auctioned Delivery Delivery Bad (Rs.
(lakh) to Total (Rs. crore) of Shares quantity) to Total (Auctioned Delivery crore)
Shares Traded (lakh) Deliverable quantity) to
Traded (lakh) Deliverable
Jul-03 332 66,940 18,509 27.65 81,422 17,581 21.59 17,489 115 0.62 0.00 0.00 5,915
Aug-03 317 81,301 20,579 25.31 82,734 17,798 21.51 17,693 146 0.71 0.00 0.00 5,465
Sep-03 338 72,916 16,810 23.05 101,229 20,625 20.37 20,538 90 0.53 0.00 0.00 7,412
Oct-03 367 72,440 16,157 22.30 116,749 22,957 19.66 22,860 79 0.49 0.00 0.00 8,992
Nov-03 305 56,150 13,420 23.90 94,376 19,057 20.19 18,981 70 0.48 0.00 0.00 7,157
Dec-03 370 68,161 18,977 27.84 107,898 25,825 23.93 25,687 109 0.57 0.00 0.00 9,171
Jan-04 396 73,510 18,610 25.32 132,751 28,345 21.35 28,220 100 0.54 0.00 0.00 9,677
Feb-04 311 47,223 9,811 20.78 110,070 19,681 17.88 19,628 32 0.33 0.00 0.00 8,438
Mar-04 307 42850 9930 23.17 103,331 18,721 18.12 18634 44 0.44 0.00 0.00 7703.6
2003-04 3,751 704,533 175,550 24.92 1,090,963 221,364 20.29 220,341 1,014 0.58 0.00 0.00 81,588
Apr-04 330 54,207 12,934 23.86 103,154 21,719 21.05 21,617 64 0.50 0.00 0.00 7,870
May-04 351 54,779 13,855 25.29 100,203 22,727 22.68 22,668 48 0.35 0.00 0.00 8,960
Jun-04 320 39,284 8,578 21.84 81,020 13,999 17.28 13,948 29 0.33 0.00 0.00 5,862
Jul-04 392 63,779 14,038 22.01 97,309 18,164 18.67 18,099 51 0.37 0.00 0.00 6,523
Aug-04 361 58,304 13,948 23.92 89,596 18,605 20.77 18,554 55 0.40 0.00 0.00 6,463
Sep-04 345 57,337 15,588 27.19 81,913 19,656 24.00 19,585 71 0.46 0.00 0.00 6,171
Oct-04 318 51,399 15,178 29.53 79,878 21,660 27.12 21,588 70 0.46 0.00 0.00 7,304
Nov-04 319 59,124 18,965 32.08 79,921 24,359 30.48 24,269 93 0.49 0.00 0.00 8,401
Dec-04 466 95,239 27,464 28.84 115,867 33,121 28.59 32,994 135 0.49 0.00 0.00 11,386
Jan-05 411 82,113 19,497 23.74 97,755 25,031 25.61 24,945 86 0.44 0.00 0.00 8,083
Feb-05 424 88,147 22,208 25.19 100,267 28,158 28.08 28,062 89 0.40 0.00 0.00 9,801
Mar-05 466 84284 20,023 23.76 114,085 29,903 26.21 29,792 79 0.40 0.00 0.00 10,417
2004-05 4,502 787,996 202,277 25.67 1,140,969 277,101 24.29 276,120 871 0.43 0.00 0.00 97,241
Apr-05 365 51,949 13,147 25.31 83,038 21,624 26.04 21,538 64 0.48 0.00 0.00 7,691
May-05 414 56,278 15,274 27.14 88,444 24,560 27.77 24,449 75 0.49 0.00 0.00 7,920
Jun-05 464 66,792 18,290 27.38 106,133 30,065 28.33 29,964 76 0.42 0.00 0.00 10,586
Jul-05 474 77,979 21,012 26.95 114,729 31,308 27.29 31,198 91 0.43 0.00 0.00 10,174
Aug-05 579 100,127 28,305 28.27 152,560 42,894 28.12 42,745 121 0.43 0.00 0.00 13,404
Sep-05 537 85,354 22,995 26.94 132,088 35,618 26.97 35,463 112 0.49 0.00 0.00 10,373
Oct-05 503 64,735 18,216 28.14 135,376 33,857 25.01 33,741 72 0.40 0.00 0.00 13,171
Nov-05 425 52,006 14,164 27.24 104,748 27,653 26.40 27,574 46 0.32 0.00 0.00 9,155
Dec-05 551 62,112 17,235 27.75 142,814 36,295 25.41 36,194 51 0.29 0.00 0.00 11,482
Jan-06 550 66,010 18,607 28.19 148,258 40,098 27.05 39,964 67 0.36 0.00 0.00 13,633
Feb-06 515 60,323 17,701 29.34 133,753 37,352 27.93 37,246 55 0.31 0.00 0.00 10,581
Mar-06 624 74,773 22,293 29.81 174,899 48,029 27.46 47,899 64 0.29 0.00 0.00 13,256
2005-06 6,000 818,438 227,240 27.77 1,516,839 409,353 26.99 407,976 894 0.39 0.00 0.00 131,426
* Balance at the end of period.