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Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD
Executive Summary: Company Profile: Anagram Stockbroking Ltd is amongst the leading retail broking houses in India. It is engaged in
offering comprehensive personal finance solutions since 1994. The company is a part of the of the Rs 20 billion Lalbhai Group. Anagram has grown and developed steadily since 1994. Along with being one of top 5 (as per Dun & Bradstreet’s Survey – “leading Corporate Broking houses in the country”) national level corporate broking house for more than a decade, they are at par with all other competitor in the Industry & matching the standards.
Title of the project: “Analysis of Stock Price Movement”
Objective of the Study:
• To study the behavior of the stock price movement during the last bull run from the period 1st October 2003 to 31st July 2008.
Type of Research: Descriptive Research Data collection type: Secondary data. Data period: 1st October 2003 to 31st July 2008. Analytical Tool: Returns, Line Graph.
Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD
• Some of the sectors like Banking, Construction and Engineering sector have shown tremendous growth in their returns during the past five years. • Some sectors have shown good returns during past few years but they have succumbed to the global cues now. • Some sectors are emerging to be very strong in the coming future.
• Some sectors have been classified into high return group. These companies have yielded huge returns in the last five years. • Some sectors have been classified into medium returns group. These companies yielded good and steady returns in the last five years • Some sectors have been classified into average return sector. These companies may have yielded huge returns in past but the returns have decreased in the recent times due to global economy.
Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD INTRODUCTION TO THE STUDY Babasabpatilfreepptmba.com Page 4 .
The opening of the Suez Canal during the 1860s led to a tremendous increase in exports to the United Kingdom and United States. in particular can be traced back to 1861 when the American Civil War began. Business was essentially confined to company owners and brokers.com Page 5 . came into existence in 1875. Positive tidings about the Indian economy combined with a fast-growing market have made India an attractive destination for investments. There had been much fluctuation in the stock market on account of the American war and the battles in Europe. There are many other factors which affect the Indian equity markets. a real estate project or an investment in equity markets. Several companies were formed during this period and many banks came to the fore to handle the finances relating to these trades. With many of these registered under the British Companies Act.Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD Introduction: The history of the Indian capital markets and the stockmarket. the Stock Exchange. with very little interest evinced by the general public. The stock market went through a bullish rally from the period of 2006 – 2008 and then suddenly there was a bearish market. The study on “Current Equity Market Analysis” focuses on what made stock market especially Sensex made bullish from the period of 2006 to 2008 and what are the various reasons which helped the Sensex to cross the index level of 21000 points. Let it be a infrastructural project. In this project we will study what are the various factor that have affected the Stock markets from the period of 2006 – 2008. which started doing business in the city under a banyan tree. Mumbai. It was an unincorporated body of stockbrokers. The stock markets turned out to be volatile from the mid of January 2008 till now. Babasabpatilfreepptmba. Indian economy has steadily grown in past years.
This study also highlights the bearish rally of the Indian stock markets.Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD Recently after the bullish rally the stock markets turned to be volatile markets from mid of January 2008. It includes what are the various reasons which made the Indian stock markets to be volatile. Babasabpatilfreepptmba.com Page 6 .
Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD INTRODUCTION TO THE FINANCIAL SYSTEM Introduction to the financial system Babasabpatilfreepptmba.com Page 7 .
Here some of the definitions of the word 'finance'. But finance exactly is not money. which results in Financial Management. We thus speak of 'finance' only in relation to a proposed activity. Finance goes with commerce. business. when referring to the financial Babasabpatilfreepptmba. as a noun and a verb." Another English Dictionary. banking. but it refers to sources of raising revenue for the activities and functions of a Government.". it is the source of providing funds for a particular activity. 3: "finances Monetary resources. especially those of a government or corporate body" 4: "The supplying of funds or capital. Financial Services and Financial Institutions. We read about Money and banking in Economics. The term "finance" in our simple understanding it is perceived as equivalent to 'Money'.Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD Financial System of any country consists of financial markets.6. investments. banking etc. and credit. Finance therefore represents the resources by way funds needed for a particular activity. both as a source and as an activity i.e. ". The American Heritage Dictionary of the English Language. 2: "The management of money. financial intermediation and financial instruments or financial products. In this respect providing or securing finance by itself is a distinct activity or function. © 1997Princeton University " defines the term as under1:"the commercial activity of providing funds and capital" 2: "the branch of economics that studies the management of money and other assets" 3: "the management of money and credit and banking and investments" All definitions listed above refer to finance as a source of funding an activity. about Monetary Theory and Practice and about "Public Finance". "WordNet ® 1. funds.com Page 8 . Fourth Edition defines the term as under1:"The science of the management of money and other assets. Finance is also referred to as "Funds" or "Capital". Thus public finance does not mean the money with the Government.
com Page 9 . When we study finance as a subject for generalising its profile and attributes. we distinguish between 'personal finance" and "corporate finance" i. resources needed personally by an individual for his family and individual needs and resources needed by a business organization to carry on its functions intended for the achievement of its corporate goals.e. INDIAN FINANCIAL SYSTEM Babasabpatilfreepptmba.Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD needs of a corporate body.
While performing their activities these units will be placed in a surplus/deficit/balanced budgetary situations. practices. money manager. A financial system or financial sector functions as an intermediary and facilitates the flow of funds from the areas of surplus to the areas of deficit. FINANCIAL MARKETS Babasabpatilfreepptmba. transactions and claims and liabilities. markets.Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD The economic development of a nation is reflected by the progress of the various economic units. There are areas or people with surplus funds and there are those with a deficit.com Page 10 . regulations and laws. analysts. broadly classified into corporate sector. A Financial System is a composition of various institutions. government and household sector.
Depending on the exchange rate that is applicable. which are met by the exchange of currencies. Capital Market . Forex Market . a financial transaction involves creation or transfer of a financial asset. FINANCIAL INTERMEDIATION Babasabpatilfreepptmba.The money market its a wholesale debt market for low-risk. Money Market. banks and financial institutions. shortterm instrument. This market is dominated mostly by government. Financial Assets or Financial Instruments represents a claim to the payment of a sum of money sometime in the future and /or periodic payment in the form of interest or dividend. Credit Market. the transfer of funds takes place in this market. highly-liquid. FIs and NBFCs purvey short.Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD A Financial Market can be defined as the market in which financial assets are created or transferred.com Page 11 . As against a real transaction that involves exchange of money for real goods or services.Credit market is a place where banks. This is one of the most developed and integrated market across the globe. medium and long-term loans to corporate and individuals. The transactions taking place in this market will be for periods over a year.The capital market is designed to finance the long-term investments. Funds are available in this market for periods ranging from a single day up to a year.The Forex market deals with the multicurrency requirements.
com Page 12 . Babasabpatilfreepptmba. To serve this purpose. There should be a proper channel within the financial system to ensure such transfer.g. Adequate information of the issue. financial advertisers financial consultants. Financial intermediation in the organized sector is conducted by a widerange of institutions functioning under the overall surveillance of the Reserve Bank of India. This service was offered by banks. issuer and the security should be passed on to take place. financial intermediaries came into existence. there may be a few intermediaries offering their services in move than one market e. primary dealers. depositories. brokers. However. Though the markets are different.Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD Having designed the instrument. underwriters. investment bankers. Some of the important intermediaries operating ink the financial markets include. When the borrower of funds approaches the financial market to raise funds. self regulatory organizations. underwriter. satellite dealers. the role of the intermediary was mostly related to ensure transfer of funds from the lender to the borrower. However. portfolio managers. mutual funds. etc. In the initial stages. FIs. stock exchanges. as the financial system widened along with the developments taking place in the financial markets. registrars. the scope of its operations also widened. and dealers. the issuer should then ensure that these financial assets reach the ultimate investor in order to garner the requisite amount. mere issue of securities will not suffice. the services offered by them vary from one market to another. custodians.
Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD INDUSTRY & COMPANY PROFILE INDUSTRY Babasabpatilfreepptmba.com Page 13 .
com Page 14 . organizations more diffuse and the business environment ever more uncertain. Organizations will also need to identify and concentrate on core competencies where they can exert maximum competitive advantage. The corollary of this market evolution is increasing risk as products become more complex. Customer needs and expectations are evolving in the face of increasing personal wealth. be this particular product. and use new regulatory demands as a catalyst for strengthening the business and enhancing market confidence. the winners will be companies that can turn the challenges into opportunities to build stronger and more enduring customer relationships. In this environment. Even larger groups will need to differentiate their offering and by implication the associated brand. For some this will require a strategic re-orientation towards becoming a specialist niche provider. customer loyalty and investment returns. transparency and accountability. unlock talent and creativity. regulation and market pressures. sharpen process efficiency. process or geographical territory. Babasabpatilfreepptmba. use improved risk management processes to deliver more sustainable returns. The battle for talent is also heating up as companies seek to enhance innovation. more private funding of pensions and healthcare and the desire for ever more accessible and personalized financial products and services. Regulation is also tightening in the wake of public and government pressure for improved governance. service. intense competition has squeezed industry margins and forced organizations to cut costs while still seeking to enhance the quality of client choice and service.Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD Financial services organizations are striving to achieve increasingly ambitious profit and growth targets against a background of heightened risk. In turn.
The company is a part of the Rs 20 Billion Babasabpatilfreepptmba. It is engaged in offering comprehensive personal finance solutions since 1994.Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD COMPANY PROFILE Company Profile Anagram Stock Broking (Anagram) is amongst the leading retail broking houses in India.com Page 15 .
and DP of NSDL for Equity and Commodities ● Anagram Comtrade Limited (ACL) having membership of Multi Commodity Exchange (MCX). ● Dropadi Finance Limited (DFL) an NBFC company engaged in the finance business. Anagram offers a wide range of services for the discerning equity investor.Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD Lalbhai Group. The group companies in the capital and commodities market area include Anagram Stockbroking Ltd and Anagram Comtrade Ltd. With the vision of being the preferred destination for all financial products for investors across India they are ready to take the next leap Along with being one of top 5 (as per Dun & Bradstreet’s Survey – “leading Corporate Broking houses in the country”) national level corporate broking house for more than a decade. Anagram has grown and developed steadily since 1994. and Ahmedabad Stock Exchange (ASE). ● Anagram Stock Broking Limited (ASBL) having membership of Bombay Stock Exchange Ltd (BSE) for Cash and F & O segment. ● Enagram Securities Limited (ESL) duly registered with AMFI and Corporate Insurance Agent of MET LIFE. in addition to online account access and real time trading. National Commodity & Derivatives Exchange Ltd (NCDEX) and National Multi-Commodity Exchange of India Ltd (NMCE). they are at par with all other competitor in the Industry & matching the standards. Corporate family of Anagram consists of following 5 Companies: ● Anagram Securities Limited (ASL) having memberships with National Stock Exchange of India Ltd (NSE) for Cash and F & O segment. Babasabpatilfreepptmba.com Page 16 .
Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD
They have with us a decade of hard won experience behind us.
They are a complete service brokerage house offering the entire spectrum of services that an equity investor would need. They offer real time trading opportunities on the NSE as well as BSE. Their group Company is also a Depository Participant of the NSDL and provides online services to their clients for account accessing and information.
To cater to the ever mobile trader as well as the net savvy investor they offer state-of –the – art online trading through their website www.anagram.co.in. Regular updates during trading hours, and access to information, analysis and research, and a range of monitoring tools on www.anagram.co.in has made it one of the most favorite sites amongst the investors.
Shake out and consolidation is a common feature across the industries and broking is no exception to it. Despite of various phases of reforms the security business is going through, Anagram has managed to stand erect and grow rapidly.
Founded in 1993, Anagram is one of India’s leading corporate broking houses today with a very strong network. With their initial strongholds in West, they have now expanded to 150 Branches covering all major business centers of India CATERING TO OVER 1, 00,000 CLIENTS. They have over 2500 terminals across the country connected with private VPN.
The following areas give us a unique identity
Service: beyond broking
The differentiator: Research and risk management Babasabpatilfreepptmba.com Page 17
Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD
Technology: the byte that works
Personnel: intangible asset.
With a network of more than 150 odd branches and with over 500 odd Franchises/Sub Brokers and a clientele of more than 1.00,000 Retail investors, Anagram is counted among the top 5 brokerages in the retail arena.
Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD
If the first priority in business is reaching customers, the second is keeping him satisfied. At Anagram, they believe in building relationship with their customers and provide him with a whole palate of services. The relationship management encompasses from providing the right investment strategies based on needs and risk stances to ensuring timely payouts.
They are proud of the fact that they’ve maintained a record of prompt payouts to their customers, winning a reputation for reliability and transparency that is not too common a currency in this business. And they’ve done this despite the alarming- and–sudden-slumps that the stock market and the economy have gone through over the last decade.
As far as product range goes, they’re steadily building up a comprehensive portfolio of products and services apart from conventional broking. High speed anywhere trading through the net, online depository services, Commodities Trading and retail debt products are increasingly areas of special emphasis for us.
While they have their hand on the pulse of the retail client, they also understand the needs of the demanding institutional clients. A separate institutional sales desk services the needs of the select institutions. They are empanelled with leading Indian Financial Institutions, Insurance Companies, Mutual Funds, Treasury of Banks, etc. and keep expanding the list.
Markets and Network
Anagram has membership in all the leading stock and commodities exchanges in the country. The firm is a member in NSE, BSE, NCDEX and MCX. It is a depository participant with NSDL. Anagram has its roots in Western India and has established nationwide presence with 169 branches, 1,360 sub-brokers, 2,556 Babasabpatilfreepptmba.com Page 19
in Areas of Expertise Anagram offers real time trading opportunities on the BSE as well as the NSE. Daily Call is its morning newsletter that takes a trading call on the market and gives a ringside view of the overnight national and international events. Regular updates during trading hours. online depository services. The Weekly Watch delivered to all the clients every Saturday evening is the most comprehensive reports of its kind. The company has steadily building up a comprehensive portfolio of products and services apart from conventional broking. The report summons developments over the past week. summary on derivatives markets. it releases daily and weekly reports providing outlook on international agri-commodities. and access to information. major economic talking points. High speed anywhere trading through the net.in). and a range of monitoring tools is available. Anagram offers state-of –the–art online trading through its website (www.Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD terminals and a professional team of 2.co. Customers get real time feeds on news. It also provides trading in futures and options through its online portal www. It also offers depository and online services to clients for account accessing and information through its online portal catering to the needs of mobile trader as well as the net savvy investor.000 plus employees spread across major metros and states in the country.anagram. On the commodities side.co. comments and recommendations through instant messaging that are of utmost essence to the serious trader. analysis and research. commodities trading and retail debt products are increasingly areas of special emphasis for the company.com Page 20 . Babasabpatilfreepptmba. technical outlook and trading ideas for the forthcoming week and fundamental investments with an exhaustive research report for a medium to long term horizon. Information and research is a vital ingredient for success in an industry that relies on information flows and where the ability of its people to understand the markets and foresee trends is what sets a good firm apart.anagram. Research Anagram is a research driven organization.
even their institutional clients find these products interesting. Weekly domestic and international market wrap up Back Office Support Anagram has centralized Back Office. Chinta’s Call is their morning newsletter that takes a trading call on the market and gives you a ringside view of the overnight national and international events and how they would shape the day’s trading. Their 18 member research team is spread over two locations i.e. Sector Update Report 2. Ahmedabad and Mumbai.com Page 21 . which is based at Ahmedabad. What differentiates us is their strategic advise under different circumstances. a call to embrace the PSU banks or to plugging into the power sector. Back Office handled by Nilesh Dakway based in Mumbai out of Bandra. They contribute regularly to the various TV channels. Babasabpatilfreepptmba. They have a battery of products that cater to the retail investor.Kurla Complex and supports the Back Office operation to Institutions and others from this place. where as for the retail segment the stress is on timeliness. Weekly sector outlook and investment picks 4. whether it is a dividend yield story. newspapers and other media. The Research Product they come out with are: 1. Company Research Report 3. Their research reports for the institutional clients are exhaustive and in detail. While the retail investors thrive on these products.Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD Research is close to their heart.
Franchisees and Remessiers. Research & Market Information 5. The other CTCL installations are over 100 at various locations. The addresses of the various offices are given in the enclosed annexure. Office Network in Mumbai 4. lease lines and Bharti VPN (Virtual Private Network) through VSATs. Office Network Across India 3. Back Office Support Office Network across India They have at present more than 150 offices across India.Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD 1.com Page 22 . Infrastructure 2. Besides this branch network Anagram has network of Sub-brokers. Babasabpatilfreepptmba. Anagram has connectivity provided through installed Vsats.
With the help of modern technology and some hard nuts in the risk management room they have been able to keep the risks of their business to the bare minimum. Their strict adherence to systems ensures that their clients and stake holders can have their quota of the much needed peaceful sleep. There is no margin for any error here. securities and Commodity broking business too has been increasingly driven by technology.in offer online trading which is supported by high bandwidth leased lines.co. The byte that works Like every other business.com Page 23 . Their website www. secure servers and a custom-built user interface that gives the customers an international standard trading experience.anagram. They have also invested in the state-of-the-art VPN infrastructure that gives a robust system to ease geographical expansion and build terminal network across the country. Whether it is the trading engine for their website or the VSATs based VPN they use for their connectivity or the applications that make their front office. Babasabpatilfreepptmba. back office and Depository service completely seamless. Their comfort to expand geographically comes from the fact that their risk management is clinical. It also enables the entire business applications available cutting across geographical boundaries. They have the best of the breed technology partners complemented by some of best brains in IT and connectivity working for us.Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD Robust risk management Risk management is at the core of their very existence. they have always settled for the best. They have made substantial investment and committed to make investment in information technology as it is increasingly the future business growth driver.
Anagram provides a host of services for customers investing in mutual funds.com Page 24 . This is doubly true in a service industry like securities business. RBI procedural guidelines and a Risk Profiler – which helps the customers in ascertaining one’s own profile. InstaNAV – a quick search based application that enables customers to get the related information about the desired scheme. Life Insurance and other small saving products. The distribution service adds up to their broking business and is serviced by experts at each location. it is often said. rankings of different mutual fund schemes. Distribution Business The Distribution Business offers advisory Services of Investments into Mutual Funds. are company’s biggest resource. thus minimizing risk. Primer – a brief description about mutual funds. list of new schemes issued in the market. They are a 1300 plus people strong team. The average age of their team is which just the right blend of youth and experience is. The business is supported by an efficient Research & Back Office team. Primary Market.Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD Intangible assets People. interviews with fund managers. They currently operate out of 60 locations of the total 150 Anagram locations and by 31st March 2008 shall cover at least 40 locations Pan India. It offers wide range of services like. train and then retain the desired people. Their success lies in the fact that they have been able to hire. Commodities Business Babasabpatilfreepptmba.
learn to compete and think out of the box. In order to match up with this phenomenal growth and pace. coordinating with bidders. Investment Banking Investment Banking is the traditional aspect of investment banks which involves helping customers raise funds in the Capital Markets and advising on mergers and acquisitions. Other terms for the Investment Banking Division include Mergers & Acquisitions (M&A) and Corporate Finance.com Page 25 . Investment banking may involve subscribing investors to a security issuance. improve their efficiency. Organized commodities trading as a professional service-oriented set-up. Industry coverage groups focus on a specific industry such as Healthcare or Technology. and Leveraged Finance. is a recent phenomenon in India but is growing at a tremendous pace. Financial Sponsors. All this requires an education that is intensive. emerging as the largest and most exciting service sectors of this decade.Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD Commodity markets are markets where raw or primary products are exchanged. such as Mergers & Acquisitions. These raw commodities are traded on regulated commodities exchanges. and maintain relationships with corporations within the industry to bring in business for the bank. the fast changing commodities sector demands that professionals learn new skills. through experiential learning. Performance Babasabpatilfreepptmba. or negotiating with a merger target. trained commodities professionals. Commodities' trading in India is on the cusp of transformation. Product coverage groups focus on financial products. comprehensive and closely linked to the commodities derivatives market. In addition. in which they are bought and sold in standardized contracts. The Investment Banking Division (commonly referred to as IBD) is generally divided into industry coverage and product coverage groups. there is always going to be a need for passionate.
It is also aiming at increasing their institutional client base. acquiring new business/brokerage firms and also entering into joint venture operations in the near future.460 domestic customer accounts in 2007 as compared to 25. The company added 26.com .295 in 2006. Products & Services • Equity Broking – Cash & Derivatives • Commodity Broking • Margin Trading Page 26 Babasabpatilfreepptmba. Number of terminals. sub brokers and employees almost doubled during this period. It plans to introduce company fixed deposits and merchant banking to its current offerings. Growth Areas Anagram has diversified its business to other areas such as portfolio management services and is looking forward at opening overseas branches. The firm has its roots in Western India especially Gujarat where it is the biggest player. But it has expanded considerably.Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD The company registered strong growth during the first 10 months of 2007.
Insurance.com Page 27 . IPO’s etc Equities: The amount which shareholders own in a publicly quoted company Equity is the risk-bearing part of the company's capital and contrasts with debt capital which is usually secured in some way and which has priority over shareholders if the company becomes insolvent and its assets are distributed Anagram is a member of both the BSE and NSE.Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD • Depository Services • Research • Distribution of Mutual Funds. The Equity cash market can be divided into: 1. Pure Delivery: The client can purchase stocks on any exchange and pay the entire purchase value before T+2 Initial margin will or will not be required depending on the comfort level with the clien Babasabpatilfreepptmba.
It carries overnight risk. It is not risk free. Intra-Day: The client can go for Intra-day trading on any exchange on the basis of the margin deposit. Initial margin of 30% will be required from the client – Cash or Eligible Stocks. 4. client has to complete the NBFC formalities. Anagram gives a intra-day exposure of 5 times the margin. To avail the NBFC Funding.com Page 28 . Tatkal basically is meant to earn interest on funds deployed. NBFC Funding: Anagram currently has a list of 574 stocks under this product – Revised Periodically. Brokerage can be negotiated if amount involved is sizable Derivative Market Derivative: These are the financial instruments for Risk Management Derives its value from an underlying asset. Risk of Short delivery. index or reference rate The Derivatives Segment can further be divided into 1.a. 3. The client can purchase stocks from this list on any exchange and the balance 70% will be funded through the NBFC @ 18% p. Funding facility allowed in Tatkal. Tatkal: Means buying stocks in the last 30 minutes of the trading session & selling the same in the first 15 minutes. Futures Babasabpatilfreepptmba. The position will be valued at Daily Closing Price 30% margin will have to be maintained by the client. It is mandatory to square off Intra-day positions on the same day. Funds have almost multiplied 4 times in last 4 years.Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD 2.
A future contract gives the holder the right and the obligation to buy or sell. Both parties of a “future contract” must exercise the contract (buy or sell) on or before the settlement date Index Futures and Stock Futures Time period – 3 months – Current. Call Option: An option contract that entitles the buyer to buy a fixed number of the underlying shares at a stated price on or before a fixed expiry day Babasabpatilfreepptmba. Contract Size – The value shall not be less than 2 lacs at the time of its introduction Options: An option is a contract. but not the obligation to buy or sell shares of the underlying security at a specific price on or before a specific date. which gives the buyer the right. near and far month. There are two types of options: 1. All contracts expire on last Thursday of every month. Options Futures: Future is an agreement between two parties to buy and sell an asset at a certain time in the future at a certain price. Call Option. Put Option.Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD 2.com Page 29 . 2.
rankings of different mutual fund schemes. Advisory Services Babasabpatilfreepptmba. Offer both Cash & derivatives. Web version is to have limited number of scrips in the market watch Money-pore Express is . RBI procedural guidelines and a Risk Profiler – which helps the customers in ascertaining one’s own profile.Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD Put Option: An option contract that entitles the buyer to sell a fixed number of underlying shares at stated price on or before a fixed expiry day On-line Trading Software Anagram provides free On line trading software further there are two versions available Web and moneypore Express.exe version (client-server application)Can be downloaded. In cash anagram offers both NSE & BSE Two Products – Delivery & Margin Delivery – 3 times limit Margin – 5 times limit with auto square off Derivatives – as per exchange margin (span + exposure). It offers wide range of services like. No auto square off Mutual Funds Anagram provides a host of services for customers investing in mutual funds. Primer – a brief description about mutual funds. thus minimizing risk.com Page 30 . interviews with fund managers. list of new schemes issued in the market. InstaNAV – a quick search based application that enables customers to get the related information about the desired scheme.
life insurance and other small saving products. Anagram is also engaged in offering advisory services of investments into mutual funds. small savings schemes. adhoc loans. The schemes include. Calculators – where it helps the customers with quick calculators. Commodities Babasabpatilfreepptmba. tax saving schemes and NRI deposits. home loans. where it provides information for NRIs in helping them makes judicious investment decisions. Its advisory services are classified into four categories namely. Primers – giving an overview about all schemes that are available. company fixed deposits. educational loans. Jargon Buster – a translator and Digital Advisors – which help in making decisions easy. Anagram also provides tax planning services – where a list of tax saving schemes and a forum for Q&A where the queries are answered by the tax advisors.com Page 31 . professional loans. The distribution services add up to their broking business and are serviced by experts at each location. fixed income. Loan Advisory Anagram also provides advisory services on the loan schemes of certain banks to its customers. and an NRI advisory body. Anagram’s set of diligent advisors helps its customers plan and get more out of one’s money. The schemes include. consumer loans and auto loans. An efficient research and back office team support the business. primary market. bank fixed deposits. It has entered into partnership with many leading banks in providing this facility.Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD Apart from broking business.
Yellow Peas. NABARD. Raw Jute) ● Spices (Jeera. Commodities available for trading: 1) Agro Products: ● Food Grains (Sugar. It is more or less on the lines of the NSE of the capital market. This exchange started operations from 10th November 2003 and is promoted by Financial Technologies (India) Ltd. Soya Seed. Union Bank of India. Rubber. Soya Meal.Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD This exchange is promoted by ICICI Bank. SBI. Soya. Jute Bags) Babasabpatilfreepptmba. Red Chili & Turmeric) ● By Products (Guar/ Guar Gum . CRISIL. Corporation Bank.Gur. Chana & Maize) ● Plantation ( Cotton. IFFCO. Canara Bank etc. LIC.. Coffee . PNB & CANARA BANK.com Page 32 . Pepper. NSE. Bank Of India.
com Page 33 . CPO. Cotton / Kapas. Soya Oil. Natural Gas. Mentha Oil) Non Agro Products : ● Precious Metals (Gold & Silver) ● Ferrous Metals (Steel Long & Flat) ● Non Ferrous Metals (Aluminium. Copper. Ground Nut Oil. Nickel & Tin) ● Energy (Crude Oil. Zinc. Lead. Carbon Credit) STOCK EXCHANGE Babasabpatilfreepptmba.Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD ● Oil & Oil Seeds ( Castor. Mustard.
Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD Stock exchange is an organized market place. either corporation or mutual organization. where members of the organization gather to trade company stocks or other securities. Some of the stock exchanges are • • • • New York Stock Exchange(NYSE) National Stock Exchange (NSE) Bombay Stock Exchange (BSE) Regional Stock Exchange (RSE) Stock exchange being a vast topic. Babasabpatilfreepptmba.com Page 34 . The trade on an exchange is only by members and stock holders who have a seat on the exchange. Stock exchanges also facilitates for the issue and redemption of securities and other financial instruments including the payment of income and dividends. they are focusing on • Bombay Stock Exchange.
The Board is inclusive & is designed to benefit from the participation of market intermediaries. Today. Board comprises eminent professional. Mumbai. popularly called as BSE) is the oldest stock exchange in asia with a rich heritage. representatives of trading Member and the managing directors of the exchange. It is located at Dalal Street.Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD • National Stock Exchange. (formerly the stock exchange. BSE is the world's number 1 exchange in terms of the number of listed companies and the world's 5th Babasabpatilfreepptmba. Over the past 133 years. There is perhaps no major corporate in India which has not sourced BSE's services in raising resources from the capital market. There are around 4700 companies listed with stock exchange and has a significant trading volume. The exchange is professionally managed under the over all directions of the board of directors. It was the first stock exchange in the country to obtain permanent recognition in 1956 from The Government of India under The Securities Contracts Act 1956. India. BSE has facilitated the growth of the Indian corporate sector by providing it with an efficient access to resources. BSE was established in 1875 as “The Native Share and Stock Brokers”. BOMBAY STOCK EXCHANGE (BSE) The Bombay stock exchange limited.com Page 35 . Mumbai.
It offers guidance to management about the cost of capital.700 listed companies. 1956 in April 1993. The market capitalization as on December 31. which recommended promotion of a National Stock Exchange by financial institutions (FIs) to provide access to investors from all across the country on an equal footing. • • • It directs the flow of capital in the most profitable channels. T and Z groups. The Capital Market (Equities) segment commenced operations in November 1994 and operations in Derivatives segment commenced in June 2000. Babasabpatilfreepptmba. Based on the recommendations. B. An investor can choose from more than 4.Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD in transaction numbers. On its recognition as a stock exchange under the Securities Contracts (Regulation) Act. It induces companies to raise their standard of performance. A well – ordered stock market performs several economic functions: • • It ensures the measure of safety and fair dealing It performs and act of magic’ by translating short term investments into long term funds for companies. NSE was promoted by leading Financial Institutions at the behest of the Government of India and was incorporated in November 1992 as a tax-paying company unlike other stock exchanges in the country. NATIONAL STOCK EXCHANGE (NSE) The National Stock Exchange of India Limited has genesis in the report of the High Powered Study Group on Establishment of New Stock Exchanges. NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. 2007 stood at USD 1.com Page 36 . are classified into A.79 trillion . S. which for easy reference. Functions of BSE The stock market is a pivotal institution in the financial system.
Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD ANALYSIS & FINDINGS Babasabpatilfreepptmba.com Page 37 .
They are as follows: • CEMENT • REFINERIES • ELECTRICAL EQUIPMENTS • BANKING • AUTOMOBILE • COMPUTER SOFTWARE Babasabpatilfreepptmba.com Page 38 .Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD The basic study on the stock price movement is conducted mainly on 8 major sectors of the economy.
com Page 39 .Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD • PHARMACEUTICALS • CONSTRUCTION & ENGINEERING.1 6 The above table can be represented in the form of graph as follows. JUL -2004 ACC 22 GRASIM 57.69 JUL -2005 93.94 JUL -2006 293 194. Babasabpatilfreepptmba.and the current index as 31July.59 170.7 9 JUL -2008 186.5 61. CEMENT SECTOR Returns in percentage are calculated by taking the base price of the shares as 1st October 2003.5 2 JUL -2007 370 298.
So the returns also increased proportionately for these two companies.Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD Interpretation: From the above graph we observe that the Cement sector as whole has started it from the scratch and made it big in the last five years. This resulted into heavy returns for companies.com Page 40 . Major highlighting points in the cement sector are: • The major cement factories like ACC and Grasim had their returns as low as 22% and 57. • The demand for the Cement and cement products increased as there was limit for the production of cement in India and so the prices also increased. • Due to governments focus on Infrastructure development the demand for cement and cement products increased tremendously from year 2005.695 respectively in year 2004. It Babasabpatilfreepptmba.
This caused decrease in the returns to be earned by the investors.and the current index as 31July. Babasabpatilfreepptmba.72 The above table can be represented in the form of graph as follows. This can be seen in the graph.Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD touched high points in the year 2007 when there was bullish market.21 JUL -2007 -6. • Due to the global cues and the rising inflation the equity markets went down hampering the prices of the shares.83 JUL -2006 -7. REFINERIES SECTOR Returns in percentage are calculated by taking the base price of the shares as 1st October 2003. JUL -2004 BPCL -1.51 287.68 JUL -2005 1.com Page 41 . the returns soared down after the year 2007.79 143.49 RELIANCE 0.22 430.37 JUL -2008 -9.19 46.
49%. Some of the major points to be seen in this sector are as follows: • In the year 2004 the refinery sector had a minimal returns. Reliance had returns of almost 47% while BPCL had just 1. • In the year 2005 there was sufficient growth in this sector. Private refinery like Reliance Industries had just 0.Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD Interpretation: From the above graph we can see that the refineries are having some diversified growth in the last five years.68% growth while BPCL is in negative returns of -1.19%.com . • Due to ever risisng global and domestic demands and rising cude prices in recent times the prices of Page 42 Babasabpatilfreepptmba.
• On the other hand.06 BHEL 30.32 JUL -2005 174. BPCL is government owned petrol distributor in the country.12 329.04 JUL -2007 129.This was because.com Page 43 . It has to abide by several laws which makes it to supply the fuels in very subsidised rates.25 0. Babasabpatilfreepptmba.47 202.02 JUL -2006 389.and the current index as 31July. ELECTRICAL EQUIPMENT Returns in percentage are calculated by taking the base price of the shares as 1st October 2003.27 The above table can be represented in the form of graph as follows.33 93.25 383. This made company to suffer heavy losses and in return to lose its returns.57 334. RIL is into exporting of petroleum to foreign countries. So it had a windfall profit and resulting heavy returns.Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD RIL reached sky giving maximun returns to the investors.24 JUL -2008 64.26 279.69 112.11 SIEMENS 89. JUL -2004 ABB 45.
BHEL. Highlights of this sector are as follows: • • • • The growth of returns for this sector moved on almost simultaneously for all the companies. In the year 2005 all the companies have shown tremendous growth in their returns. ABB and BHEL are into production of Power generating equipments so there has been a tremendous growth in these two firms during the past five years. It can be seen from the graph that the return of BHEL started from 30% in year 2004 has risen to 334% in 2008. BHEL and Siemens. Three major players in these sectors namely ABB.Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD Interpretations: From the above graph it can be seen that there had been rise and fall in the returns of this sector. Heavy equipment producer Siemens had shown more than 300% growth. Babasabpatilfreepptmba.com Page 44 . Due to thrust of government on the Power sector there has been high growth in the returns of the companies like ABB.
83 215.84 PNB 47.8 106. JUL -2004 HDFCBANK 23.06 367.32 JUL -2007 307. BANKING SECTOR Returns in percentage are calculated by taking the base price of the shares as 1st October 2003.33 JUL -2008 295.and the current index as 31July.85 140.23 The above table can be represented in the form of graph as follows.16 103.com Page 45 .8 236.Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD • The growth of this sector may increase in the near future also because of growth of various sectors such as Power and Infrastructure sectors.78 JUL -2006 179.32 72. Babasabpatilfreepptmba.5 ICICIBANK 21.61 JUL -2005 117.47 15.
Babasabpatilfreepptmba. This is why the returns increased to its peak during the year 2007.com Page 46 . One more reason for the higher incomes would be the consolidated business made by the banks. as we can see. Accordingly the returns started increasing. ICICI had 22% and Punjab National Bank had highest returns among these banks with returns of 48%. Highlights of this sector are as follows: • The returns during the year 2004 were almost similar due to various Reserve bank policy. • There were some government reforms during the year 2005 which helped the bank earn more incomes.Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD Interpretations: From the above graph it can be seen that there had been rise in the returns of this sector. The banks had more miscellaneous incomes during the year which also resulted into higher incomes. HDFC Bank had returns of 23. it liberalized the businesses of all the banks.5%.
88 JUL -2005 88.16 248.19 24.Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD • The rising inflation during these recent times and increase of CRR rates made by the Reserve Bank made these bank lose its business a lot.42 The above table can be represented in the form of graph as follows.56 JUL -2007 123.5 JUL -2006 155.45 36.com Page 47 .78 87.27 77.44 204.58 140 107.68 153.8 26. These are the reasons for losing its returns.93 JUL -2008 157. Babasabpatilfreepptmba.and the current index as 31July JUL -2004 HEROHONDA M&M MARUTI TATAMOTORS 62.72 115 147.79 240. The bank increased its loan rates making people to refrain taking loans. this can be seen in the table AUTOMOBILE SECTOR Returns in percentage are calculated by taking the base price of the shares as 1st October 2003.04 116.94 159.
This could be due to various reasons like High salary. The returns upon each share were in range of 25%. • The trend has reached its peak in the year 2007 where there were several launch of two wheelers and four wheelers in the market. • As the spending behavior of a consumer of people changed there was heavy demand for the vehicles in country. As it is said that there is null before storm. Therefore there had been the highest returns earned during that particular year. high disposable income and also high standard of living. The major highlights of this sector are: • It can be seen that almost all the automobile sector had similar earning in the year 2004.Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD Interpretations: From the above graph we can observe that there has been good growth in the sector in the recent five years.com Page 48 . it was period before boom in automobile sector. Babasabpatilfreepptmba.87%.
73 -4.com Page 49 .8 53.02 83. Tata Motors suffered decrease in the returns because of the buy out Jaguar and Landrover stable.12 SATYAMCOMP 21.32 JUL -2008 16.32 JUL -2007 89. But in long run it will be very profitable for the company.91 39. COMPUTERS.78 The above table can be represented in the form of graph as follows.Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD • • Lately due to rising inflation and the rising prices of fuel have decreased the sales of vehicles in the markets. Babasabpatilfreepptmba.91 -4.96 97.62 WIPRO 28.82 97. But two wheelers have still the wide market open for them.31 JUL -2006 184. JUL -2004 HCLTECH 71.99 -17.and the current index as 31July.SOFTWARE SECTOR Returns in percentage are calculated by taking the base price of the shares as 1st October 2003.67 JUL -2005 118.
This sector had even shown growth more than the GDP of the country. The returns continued to be high even in the year 2005 but reached its peak during the year 2006 were companies like HCL and Satyam were earning returns almost 100% or even more than it. Babasabpatilfreepptmba.com Page 50 . This can be seen as HCL which was having returns of 89% soared down to just 17% in year 2008. The other reason of this sector would be the government thrust on the IT sector and heavy deduction of taxes for such companies in India.Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD Interpretation: This sector has shown tremendous growth in the last few years. Almost all the companies enjoyed tax holiday and facilities to develop IT park. Some of highlighting points of this sector are as follows: • • • The major markets for the software company were the US market and had a flourishing market in the year 2004 where returns were considerably good. But still investing in this sector is still considered good since it is ever developing type of sector. While Satyam soared comparatively less from 84% to 53%. • • But the returns started diminishing from 2007 onwards due to the change in the global environment such as recession of American economy where these companies had major contracts.
79 JUL -2006 19.72 The above table can be represented in the form of graph as follows.85 109. Babasabpatilfreepptmba.49 -62.9 -61.com Page 51 .89 JUL -2008 23.4 192.Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD PHARMACEUTICAL SECTOR Returns in percentage are calculated by taking the base price of the shares as 1st October 2003.83 RANBAXY -3.77 12.68 SUNPHARMA -25.6 18.43 58.88 JUL -2005 -28.and the current index as 31July JUL -2004 DRREDDY -30.24 -45.39 JUL -2007 23.
There is no particular reason why the companies were having loss. There were also news of selling the company which finally happened in the year 2008. • Ranbaxy Lab suffered huge losses during the last five years. One company is making huge returns while the other one is making huge losses. This can be seen in the graph were Ranbaxy was the least loser with -3.Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD Interpretation: From the above graph we can observe that there have been diversified returns of the companies. the reasons are several like losing the case and major failure of its products. This is why the returns started decreasing till -45% in the year 2008 Babasabpatilfreepptmba. The one major reason would be of losing the business.com Page 52 . The major highlighting factors are as follows: • All the companies were having negative returns during the year 2004.68%.
9 JUL -2005 268.91 205. The reasons were several like successful products and efficient management.com Page 53 .89 JUL -2008 738. It invested huge in research and Development which yielded huge returns.5 JUL -2006 592.2 The above table can be represented in the form of graph as follows.5% in the year 2008. Now currently its returns are at peak with almost 193%.Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD • Dr Reddy pharmaceuticals had a similar story for the loss in the revenue. Returns in percentage are calculated by taking the base price of the shares as 1st October 2003. CONSTRUCTION & ENGINEERING. Babasabpatilfreepptmba.56 848.04 844. There were several losses occurred due to the failure of its major products.38 JUL -2007 597. But it recovered during the year 2006 with a positive returns of 20% which grew steadily to almost 23.and the current index as 31July JUL -2004 L&T 137 UNITECH 87. • In contrast Sun Pharmaceuticals made huge recovery during the year 2005 itself.04 310.
• The year 2005 brought huge returns for the construction company like Unitech as there was huge development in infrastructure sector. There had been remarkable growth in returns during the last five years. Some of the highlighting points are: • As the government’s five year plan was development of the infrastructure there was demand for such companies in India. While L&T had steady increase in its returns to almost 269%. It was majorly because Babasabpatilfreepptmba.com Page 54 . The return was astonishing 848. Unitech started with good return of 88% in the year 2004.5% in the year 2005. L&T had the returns of almost 597% while Unitech had the returns of 845%. • The actual boom was in the year 2007 where the returns were at the peak for both the companies. While Engineering Company like L&T had a huge return of 137% in the year 2004.Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD Interpretation: During the past five years there had been boom in the sector of construction and Engineering.
• But the inflation took on toll on the growth of construction company this can be seen from the fall in returns to 205% and in contrast the engineering company like L&T made growth till 739%. Babasabpatilfreepptmba.Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD of huge development in the infrastructures. There were major plans of constructing SEZs in the country and so these companies had huge returns. This may be due to the various contracts secured by the company and also due to the pending bonus on each share.com Page 55 .
Medium returns include companies which have high and steady return with relatively less volatility in their shares. High returns include companies having huge returns but also the volatility is also high. • Investors willing to have high returns can invest in companies of Construction or Engineering sectors like Unitech an L&T. Average returns include companies having satisfactory returns with high gestation periods. Medium returns and Average returns. even they can invest into companies such as BHEL.com Page 56 . ABB which are into production of Power equipments. Babasabpatilfreepptmba. During the recent 5 years the Banking sector has shown tremendous growth so it can be placed in high returns categories. So accordingly suggestions are based upon these categories.Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD SUGGESTIONS SUGGESTIONS: The rate of returns can be classified into High returns.
These companies have a long gestation period but the returns are guaranteed with comparatively less risk involved for the investors.com Page 57 .Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD • Investors willing to have a medium returns can invest in Automobile sectors. • Investors willing to have a average returns on their investment can invest in companies such as Software sectors which were having high growth returns during past years but have slowed down due to international environment. Cement companies and Refineries. Babasabpatilfreepptmba.
bseindia.com • www.nseindia.com Babasabpatilfreepptmba.com • www.anagramstock.com • www.com Page 58 .Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD BIBLIOGRAPHY Bibliography: • www.moneypore.
com Page 59 .Analysis of Stock Price Movement At ANAGRAM STOCK BROKING LTD Babasabpatilfreepptmba.
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