Group 8, Section B

Team Leader Satish Kumar (12P230) Team Members Lucky Sharma (12P145), Rohan Khandelwal(12P164), Mayur Kumar(12P216), Vikash Singh (12P240)

FRM Portfolio Strategy

Portfolio Strategy We majorly followed a speculative strategy. However, we have also used options to hedge our portfolio We invested in equity and options - both currency and equity. The exchanges chosen for trading of different securities was kept the same, i.e. NSE except for commodity futures trading for which we adopted MCX as the trading exchange. We have maintained an investment of 40-45% in equity, around 45-50% in derivatives and remaining in cash

Week 3
Equity Portfolio Strategy
We have to keep all the stocks because, their prices have either gone down or have minimally increased (3-5%).

Substantial increase has been seen in case of Godrej Consumer because of following reasons. 1) A report from PWC, which says that India will continue to see merger and acquisitions (M&A), and private equity activity within the FMCG sector both on a domestic and crossborder basis, notwithstanding the global economic slowdown. Indian FMCG companies have been active in overseas acquisitions with the likes of Godrej and Wipro taking the lead. 2) Godrej Consumer Products Ltd has informed BSE that the Board of Directors of the Company at its meeting held on August 03, 2013, inter alia, has declared first interim dividend @ Re. 1/- per share (100% on the share of the face value of Re. 1/- each) for the financial year 2013-14.
But, if we see the historical trend, then the price is on a up trend after the news. So we would like to keep this stock for sometime.

Group 8, Section B
Team Leader Satish Kumar (12P230) Team Members Lucky Sharma (12P145), Rohan Khandelwal(12P164), Mayur Kumar(12P216), Vikash Singh (12P240)

Derivatives Portfolio Strategy

We are bearish on the NIFTY index and have gone long on Put 5800 after closing out positions by buying back the shorted options. This was done on 23rd July and using the money we went long on Put 5800 expecting the NIFTY to go down after its huge rise to over 6050 in the end of last week(19th July). The index was expected to snap its winning streak and expected to settle to lower values due to growth concerns and nervousness ahead of the Reserve Bank of Indias (RBI) quarterly policy review due on 30rd July. We continue to be bullish on the Indian Rupee and have still maintained the shorted USDINR due to RBI's aggressive defence of currency which has showed success. However, this is affecting the equity markets.

Fixed deposits at 9% was earned on the remaining money.