India’s Leading BFSI Companies 2020

XXXIV Year S&P BSE Sensex S&P BSE 100 S&P BSE Teck S&P BSE Bankex NIFTY 50 NIFTY Next 50 NIFTY IT NIFTY Bank FY 2018 22.7 22.5 21.6 28.5 24.7 34.7 18.6 29.6 FY 2019 28.0 26.2 23.9 44.0 29.0 45.5 23.3 64.8 Price to Book Value Ratio The price to book (P/B) ratio is a financial ratio that is used to compare market value of a stock to its book value. As on March 31, 2019, BSE S&P Sensex and NIFTY 50’s P/B ratios were 3.2 and 3.7, respectively as compared to 3.0 and 3.4, respectively as on March 31, 2018 Year S&P BSE Sensex S&P BSE 100 S&P BSE Teck S&P BSE Bankex NIFTY 50 NIFTY Next 50 NIFTY IT NIFTY Bank FY 2018 3.0 3.0 3.8 2.2 3.4 3.3 4.5 2.8 FY 2019 3.2 2.9 4.3 2.6 3.7 4.2 5.6 3.4 Dematerialization In the past few decades, the Indian capital market has undergone a phenomenal growth in terms of listed companies, number of stock exchanges, trade volumes of scrips, and investor population. This astounding growth of the capital market in India has been primarily due to the introduction of the dematerialisation. Demat accounts eliminatemany problems that investors have to face while dealing with physical securities. They minimise paperwork that is involved with the ownership, trading, and transfer of securities. It facilitates faster transactions and makes trading in securities extremely convenient and safe. At the end of March 2019, there were 185 lakh demat accounts at the National Securities Depository Limited (NSDL) and 174 lakh demat accounts at the Central Depository Services (India) Limited. Derivatives segment The equity derivatives segment in India has grown exponentially over the years and has continued its momentum in fiscal 2019 as well. In fiscal 2019, the total turnover in equity derivatives segment rose by 44% compared to the previous year. The ratio of turnover in equity derivatives to that in cash segment has increased from 20 times in fiscal 2018 to 27 times in fiscal 2019. Almost all the trading in the F&O segment, during fiscal 2019, happened on NSE, which dominated the F&O market and BSE’s share has waned gradually over the years. During fiscal 2019, the number of contracts traded at NSE increased by 65.4% while the value of the contracts traded increased by 44.0%. The turnover of NSE increased from ` 1,649.8 lakh cr in fiscal 2018 to ` 2,376.0 lakh cr in fiscal 2019. On the contrary, during the same period, the turnover at BSE decreased from ` 3,263 cr to ` 2,250 cr. The open interest in NSE’s derivatives segment increased by 4.2% from ` 2.7 lakh cr at the end of fiscal 2018 to ` 2.9 lakh cr at the end of fiscal 2019, whereas at BSE, the open interest was ` 0.67 cr at the end of fiscal 2019 as against ` 0.12 cr at the end of fiscal 2018. Year Open Interest at the end of the year No of contracts traded Turnover (RS cr) No. of contracts Value ( ` cr) NSE BSE NSE BSE NSE BSE NSE BSE FY 2018 1,91,38,78,548 44,701 16,49,84,859 3,263 38,00,266 2 2,74,931 0.12 FY 2019 3,16,48,02,420 31,167 23,76,00,705 2,250 40,38,916 9 2,86,403 0.67 Participant-wise share Participant-wise share in NSE F&O’s turnover for fiscal 2019 shows that proprietary trades accounted for a 37.8% share in the annual turnover. While FPIs had a share of 13.6% in the total turnover, the ‘others’ category (comprising retail, HNIs and private and public companies) had an average share of 48.2% in the total turnover; mutual funds constituted a miniscule share of 0.4%. In BSE F&O’s turnover, proprietary trades had a share of 2.0% and the “Others” category had a share of 98.0%. Dun & Bradstreet