A RESEARCH STUDY PROJECT REPORT ON SHARE MARKET & FINANCIAL SYSTEM

[ SH ARE K H AN LI M I TED]

IS SUBMITTED BY

ANIL KUMAR THAKUR
PGCP (FINANCE +MARKETING) TO SURYADATTA INSTITUTE OF MANAGEMENT & MASS COMMUNICATION

TOWARDS

PARTIAL FULFILLMENT OF THE PAPER OF THE INTERNSHIP PROJECT (2007-2009)

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PREFACE
THE CORPORATE PROGRAM of MBA course is a well structured and integrated programme. The course of management gives a practical knowledge in our study course. Industries give us much information about the different product and services we use in our day to day life. It is highly said that “practice makes a man perfect” the summer project training which is a part of M.B.A to get a practical understanding and training of the business management. Thus the industrial training which is a part of M.B.A course helps the student to get the knowledge about the actual environment of an organization. Share khan securities ltd. is one of such company dealing in Share market Derivatives, Commodities, Mutual fund IPO distribution with almost branches in overall India. It involved the study of finance activities of the organization. I have under taken industrial training in Share khan securities ltd. at Pune crossing from 1-june2008 to 31-july-2008 as a part of my PGCP course curriculum and I thus, present a project report on it at the best of my ability knowledge and work done.

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ACKNOWLEDGEMENT
I feel pleasure for making a report which I visited at Pune named Share khan securities Ltd. this year. The main objective of this practical training information about the real environment of the firm. is to get

I hereby acknowledge my sincere thanks and grateful to our director MR SANJAY.B.CHORDIYA. I also thanks to our faculties, our office superiors and my friend partner which gave full response to us. As a part of MBA programme I have taken training in stock market in Share khan securities Ltd at Pune for a period of 2 months and 25 days . Success cannot come without inspiration, motivation & innovation. We the projectors ascribe our success in this venture to our guide Asmita Joshi .Without her guidance our project completion is a distance dream. I wish to express to humble gratitude to Mr. DURGA PARSAD for his diligent efforts in providing particle tips to tackle complicated situation with limited sources, whose ever presence in mind with helping attitude to encourage me to complete this study and for his untiring help and valuable guidance

ANIL KUMAR THAKUR

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Research methodology objective and limitation Problem definition Justification of study Objective of study Research design 4 . Research objective Statement of problem Objective of the research project 4.CONTENTS 1. and financial risk Function of stock exchange Service of stock exchange 2. Profile of the broking house in the stock market Kotak securities Share khan India infoline Bonanza Reliance money Karvy Religare securities India bulls Anand rathi 3. individual investors. Introduction Stock market History Trading Market participants Importance of stock market The behaviour of the stock market Bombay stock exchange BSE indices National stock exchange Derivatives Financial system Flow of fund Main function of financial system Financial market Capital market Stock exchange Relation of the stock market with financial system The stock market.

Source of data Limitation of study 5. Conclusions and suggestions 6. Questionnaire 5 .

bseindia. these are securities listed on a stock exchange as well as those only traded privately. India Bombay Stock Exchange Limited Rajnikant Patel (CEO) INR ~6. because it is stated in terms of 6 . It must be noted though that the value of the derivatives market. The size of the world stock market is estimated at about $51 trillion. or (equity market). The world derivatives market has been estimated at about $480 trillion face or nominal value.61 trillion (2006) US$ 980 billion (2006) BSE Sensex http://www.000 US$ 1. 12 times the size of the entire world economy.com/ STOCK MARKET A stock market. of listings MarketCap Volume Indexes Website Stock Exchange Mumbai.INTRODUCTION The Bombay Stock Exchange in India Type Location Owner Key people Currency No. is a private or public market for the trading of company stock and derivatives of company stock at an agreed price.

In 1602. The stock market in the United States includes the trading of all securities listed on the NYSE. as well as on the many regional exchanges. The stocks are listed and traded on stock exchanges which are entities a corporation or mutual organization specialized in the business of bringing buyers and sellers of stocks and securities together. they could be called the first brokers. an informal meeting. 2001). In 1351 the Venetian government outlawed spreading rumors intended to lower the price of government funds.or losses. The idea quickly spread around Flanders and neighboring counties and "Beurzen" soon opened in Ghent Antwerp and Amsterdam. It was the first company to issue stocks and bonds. In 12th century France the courratiers de change were concerned with managing and regulating the debts of agricultural communities on behalf of the banks. unit trusts and other speculative instruments. The Dutch "pioneered short selling. OTCBB and Pink Sheets. option trading. The Dutch later started joint stock companies. Genoa and Florence also began trading in government securities during the 14th century.7. Bankers in Pisa. which traditionally refers to an actual value. There are now stock markets in virtually every developed and most developing 7 .g. and in 1309 they became the "Brugse Beurse". In the middle of the 13th century Venetian bankers began to trade in government securities. e. HISTORY Historian Fernand Braudel suggests that in Cairo in the 11th century Muslim and Jewish merchants had already set up every form of trade association and had knowledge of many methods of credit and payment. The Amsterdam Stock Exchange (or Amsterdam Beurs) is also said to have been the first stock exchange to introduce continuous trade in the early 17th century. the NASDAQ. April 5. rather than an actual market price. the Amex. until then. Verona.notional values. the Dutch East India Company issued the first shares on the Amsterdam Stock Exchange. In late 13th century Bruges commodity traders gathered inside the house of a man called Van der Beurse. institutionalizing what had been. London Review of Books XXIII. "Japan Goes Dutch". much as we know them" (Murray Sayle. European examples of stock exchanges include the London Stock Exchange. which let shareholders invest in business ventures and get a share of their profits . Because these men also traded with debts. Many such relatively illiquid securities are valued as marked to model. the Deutsche Borse and the Paris Bourse. debt-equity swaps. This was only possible because these were independent city states not ruled by a duke but a council of influential citizens. disproving the belief that these were invented later by Italians. merchant banking. and cannot be directly compared to a stock or a fixed income security.

composed of a network of computers where trades are made electronically via traders. The NASDAQ is a virtual listed exchange. Some exchanges are physical locations where transactions are carried out on a trading floor. no trade immediately takes place--in this case the specialist should use his/her own resources (money or stock) to close the difference after his/her judged time. who can be based anywhere. buyers and are electronically matched. The specialist's job is to match buy and sell orders using open outcry.[1] TRADING Participants in the stock market range from small individual stock investors to large hedge fund traders. where all trading is done over a computer network. If a spread exists. with the world's biggest markets being in the United States. India. The purpose of a stock exchange is securities between buyers and marketplace (virtual or real). Once a trade has been made the details are reported on the "tape" and sent back to the brokerage firm. especially for so-called "program trading".economies. who executes the order. One or more NASDAQ market of the similar sellers makers 8 . This type of auction is used in stock exchanges and commodity exchanges where traders may enter "verbal" bids and offers simultaneously. respectively. Orders enter by way of exchange members and flow down to a specialist. Actual trades are based on an auction market paradigm where a potential buyer bids a specific price for a stock and a potential seller asks a specific price for the stock. France and Japan. which then notifies the investor who placed the order. Canada. who goes to the floor trading post to trade stock. The process is to the New York Stock Exchange. a sale takes place on a first come first served basis if there are multiple bidders or askers at a given price. Although there is a significant amount of human contact in this process. by a method known as open outcry. Their orders usually end up with a professional at a stock exchange. facilitating price The New York Stock Exchange is a physical exchange. (Buying or selling at market means you will accept any ask price or bid price for the stock. China (Hong Kong). Germany. thus providing a exchanges provide real-time securities. The trading information on the listed discovery. computers play an important role. to facilitate the exchange of sellers. The other type of exchange is a virtual kind. also referred to as a listed exchange — only stocks listed with the exchange may be traded.) When the bid and ask prices match. However. UK.

according to data compiled by Boston-based Aite Group LLC. with long family histories (and emotional ties) to particular corporations. active trading (especially in large blocks of securities) have moved away from the 'active' exchanges. By bringing more orders in-house. brokers pay the exchanges less in fees and capture a bigger share of the $11 billion a year that institutional investors pay in trading commissions MARKET PARTICIPANTS Many years ago. Thus. security trades away from the exchanges to their internal systems. the balance of power in equity markets is shifting. That share probably will increase to 18 percent by 2010 as more investment banks bypass the NYSE and NASDAQ and pair buyers and sellers of securities themselves.S. but only after the large institutions had managed to break the brokers' solid front on fees they then went to 'negotiated' fees. a brokerage-industry consultant [citation needed]. the CATS trading system was introduced. mutual funds. it consisted of an open outcry exchange. and banks). It was automated in the late 1980s. Now that computers have eliminated the need for trading floors like the Big Board's. such as wealthy businessmen. where clients can move big blocks of stock anonymously.g. and Credit Suisse Group. insurance companies. already steer 12 percent of U. hedge funds. The Paris Bourse. now part of Euronext. led by UBS AG. Prior to the 1980s. Over time. investor groups. From time to time. the government was responsible for "fixed" (and exorbitant) fees being markedly reduced for the 'small' investor. is an order-driven. but only for large institutions)[citation needed]. buyers and sellers were individual investors. markets have become more "institutionalized". In 1986. However.. corporate governance (at least in the West) has been very much adversely affected by the rise of (largely 'absentee') institutional 'owners' 9 . Stockbrokers met on the trading floor or the Palais Brongniart. electronic stock exchange. worldwide. Securities firms. pension funds. Goldman Sachs Group Inc. buyers and sellers are largely institutions (e. The rise of the institutional investor has brought with it some improvements in market operations. and the order matching process was fully automated.will always provide a bid and ask price at which they will always purchase or sell 'their' stock.

meaning that they collect and deliver the shares. in general. central banks tend to keep an eye on the control and behavior of the stock market and. This is an attractive feature of investing in stocks. tend to be associated with increased business investment and vice versa. and can influence or be an indicator of social mood. The smooth functioning of all these activities facilitates economic growth in that lower costs and enterprise risks promote the production of goods and services as well as employment.IMPORTANCE OF STOCK MARKET The stock market is one of the most important sources for companies to raise money. Therefore. or raise additional capital for expansion by selling shares of ownership of the company in a public market. and guarantee payment to the seller of a security. for instance. This eliminates the risk to an individual buyer or seller that the counterparty could default on the transaction. 10 . This allows businesses to be publicly traded. compared to other less liquid investments such as real estate. History has shown that the price of shares and other assets is an important part of the dynamics of economic activity. Rising share prices. Financial stability is the raison d'être of central banks. Exchanges also act as the clearinghouse for each transaction. on the smooth operation of financial system functions. The liquidity that an exchange provides affords investors the ability to quickly and easily sell securities. Share prices also affect the wealth of households and their consumption. In this way the financial system contributes to increased prosperity.

and the use of certain strategies. This event demonstrated that share prices can fall dramatically even though. (But this largely theoretic academic viewpoint also predicts that little or no trading should take place—contrary to fact—since prices are already at or near equilibrium.6 percent—the largest-ever one-day fall in the United States.. Other research has shown that psychological factors may result in exaggerated stock price movements.) In the present context this means that a succession of good news items about a company may lead investors to overreact positively (unjustifiably driving the price up). Psychological research has demonstrated that people are predisposed to 'seeing' patterns. many studies have shown a marked tendency for the stock market to trend over time periods of weeks or longer. only changes in fundamental factors. it is impossible to fix a definite cause: a thorough search failed to detect any specific or unexpected development that might account for the crash. some research has shown that changes in estimated risk. and often will perceive a pattern in what is. According to the efficient market hypothesis (EMH).e. It also seems to be the case more generally that many price movements are not occasioned by new information.[3] Moreover.THE BEHAVIOR OF THE STOCK MARKET From experience we know that investors may temporarily pull financial prices away from their long term trend level. (Something like seeing familiar shapes in clouds or ink blots. in fact. Overreactions may occur—so that excessive optimism (euphoria) may drive prices unduly high or excessive pessimism may drive prices unduly low. such as stop-loss limits and Value at Risk limits. to this day. theoretically could cause financial markets to overreact. non-trending). while the EMH predicts that all price movement (in the absence of change in fundamental information) is random (i. having priced in all public knowledge. a study of the fifty largest one-day share price movements in the United States in the post-war period confirms this.) But the efficient-market hypothesis is sorely tested by such events as the stock market crash in 1987. Various explanations for large price movements have been promulgated. For instance. when the Dow Jones index plummeted 22. ought to affect share prices. such as profits or dividends. New theoretical and empirical arguments have been put forward against the notion that financial markets are efficient. A 11 . just noise.

On 31 December 2007. The Stock Exchange.[5] In normal times the market behaves like a game of roulette.2002 crash. Over the short-term.2002 crash. The players now must give heavy weight to the psychology of other investors and how they are likely to react psychologically.000 listed companies as of August 2007. predictions of a DOW average below 5000 were quite common. the stock market can be swayed tremendously in either direction by press releases. Mumbai.[1] It is located at Dalal Street. the equity market capitalization of the companies listed on the BSE was US$ 1. the average did not rise above 5%). It is also the biggest stock exchange in the world in terms of listed companies with 6. In times of market stress. less than 1 per cent of the analyst's recommendations had been to sell (and even during the 2000 . self- In one paper the authors draw an analogy with gambling. Around 6. IRRATIONAL BEHAVIOR Sometimes the market tends to react irrationally to economic news. however. Mumbai. rumors. euphoria and mass panic.000 Indian companies list on the stock exchange. The media amplified the general euphoria. is quite unforgiving of amateurs. popularly called The Bombay Stock Exchange. or BSE) is the oldest stock exchange in Asia. so that by summer of 2002. making it the largest stock exchange in South Asia and the tenth largest in the world. India. with reports of rapidly rising share prices and the notion that large sums of money could be quickly earned in the so-called new economy stock market. In the period running up to the recent Nasdaq crash. reducing his (psychological) risk threshold. Therefore. Inexperienced investors rarely get the assistance and support they need. the probabilities are known and largely independent of the investment decisions of the different players.79 trillion. the game becomes more like poker (herding behavior takes over).[2] The Bombay Stock Exchange was established in 1875.period of good returns also boosts the investor's confidence. even if that news has no real effect on the technical value of securities itself. making the stock market difficult to predict.[4]. Bombay Stock Exchange T h e B o m b a y S t o c k E x c h a n g e L i m i t e d ( H i n d i : म ुं ब ई श े य र ब ा ज ा र Mumbaī Śeyar Bājār) (formerly. as any other business. The BSE SENSEX (SENSitive 12 .[3] and it has a significant trading volume. The stock market. (And later amplified the gloom which descended during the 2000 . stocks and other securities can be battered or buoyed by any number of fast market-changing events.

These companies account for around one-fifth of the market capitalization of the BSE.indEX). Apart from BSE SENSEX. also called the "BSE 30". which is the most popular stock index in India. is a widely used market index in India and Asia. BSE and the National Stock Exchange of India account for most of the trading in shares in India BSE INDICES The BSE SENSEX (also known as the BSE 30 index) is a valueweighted index composed of thirty scrips. with the base April 1979 = 100. The set of companies which make up the index has been changed only a few times in the last twenty years. BSE uses other stock indices as well: • • • • • • • • • • • • BSE BSE BSE BSE BSE BSE BSE BSE BSE BSE BSE BSE 500 100 200 PSU MIDCAP SMLCAP BANKEX Teck Auto Pharma Fast Moving Consumer Goods (FMCG) Consumer Durables 13 . Though many other exchanges exist.

001 in the wake of a good monsoon season and excellent corporate results. 14 . July 25. Following is the timeline on the rise and rise of the Sensex through Indian stock market history. Mr Damodaran. 1990 On July 25. the Sensex touched the magical four-digit figure for the first time and closed at 1. struck the BSE's opening bell. 2006. the Managing Director of New Delhi Television (NDTV) Ltd. the Chairman of the Securities and Exchange Board of India (SEBI). said that the ticker would provide information and analysis of the financial world. 1990. 1000.BSE BROADCAST The BSE Broadcast is a large ticker on the wall of the BSE. which continuously displays the latest stock quotes from the market. when Dr Prannoy Roy. It also displays – on what is described as India's and South Asia's largest video screen –one of the leading businessnews channels in India: NDTV Profit. This new system was unveiled on December 15.

2006 crossed the magical figure of 11. it was on March 27. 2006 that the Sensex first closed at over 11. 10. 2005 On September 8. March 30. 1992. Reliance Capital.000-mark and hit and all time high of 6.091 on the expectations of a liberal export-import policy. 4000. 1992 On February 29. and IPCL made huge gains. October 8. 1992 On March 30. the Sensex surged past the 3000 mark in the wake of the market-friendly Budget announced by the then Finance Minister. However. 2006 The Sensex on February 6. 2006 touched 10. September Stock Exchange's crossed the 8000 domestic funds in 8. 7000. 6000. June 20.000-mark and closed at 4. 3000.001 points during mid-session at the Bombay Stock Exchange for the first time. 2005 crossed the magical figure of 9000 to touch 9000. February 29. Dr Manmohan Singh.000.32 points during mid-session at the Bombay Stock Exchange on the back of frantic buying spree by foreign institutional investors and well supported by local operators as well as retail investors. 1999 On October 8. the news of the settlement between the Ambani brothers boosted investor sentiments and the scrips of RIL.000 points. November 28. 2005 On June 20. 1999. 2005. This helped the Sensex crossed 7. 2000 On February 11. February 11. Reliance Energy.000-mark and closed at 2.000.006. 2005 The Sensex on November 28. It was then that the Harshad Mehta scam hit the markets and Sensex witnessed unabated selling.003 points during mid-session.020 followed by the liberal economic policy initiatives undertaken by the then finance minister and current Prime Minister Dr Manmohan Singh. 15 . The Sensex finally closed above the 10K-mark on February 7.000 and touched a life-time peak of 11. 2006. the Sensex crossed the 2. 2005. 8000. the Sensex crossed the 5. February 6.000 points for the first time.2000. 1992.000-mark as the BJP-led coalition won the majority in the 13th Lok Sabha election. the Bombay benchmark 30-share index -. 1992 On January 15. 2006 The Sensex on March 21.the Sensex -level following brisk buying by foreign and early trading. 9000. the Sensex crossed the 4. 5000. 2000. the infotech boom helped the Sensex to cross the 6. 11. March 21. January 15. 1992.

26 points.000. up 113 points.921. It took just 8 days to cross 18. July 6. It took seven months for the Sensex to move from 14. 2006 The Sensex on April 20.005 points in afternoon trade.887 .000 and 123 days to move from 12. December 5. the Sensex crossed the 17. It took 135 days for the Sensex to move from 12.000.000-mark to touch 14. The Sensex ended with a gain of 22 points at 16.000. It finally gained 789 points to close at an all-time high of 18. October 15. April 20. Nifty also touched a new high at 4659. the Sensex crossed 16. 2007 crossed the magical figure of 15.000 points from the 17. 2006 crossed the magical figure of 13. The NSE Nifty gained 186 points to close at 4.12. 2007. Within minutes after trading began.500 to 13. 2006 crossed the 14. September 26. 16. The 30-share Bombay Stock Exchange's sensitive index took 53 days to reach 16. 2007 The Sensex crossed the 19.040 points for the first time. The market set several new records including the biggest single day gain of 789 points at close. 2007 The Sensex scaled yet another milestone during early morning trade on September 19. 2006 The Sensex on December 5. 18. capital goods and refinery sectors.000 to touch 15. Within minutes after trading began.000 to 15. 13.down 187 points from the day's high. rising by 450 points from the previous close. 2007 The Sensex on July 6. 2006 The Sensex on October 30.9%.000 to 13. up 117.000 mark.000.000.45 points or 0. 15. 2007 The BSE Sensex crossed the 18.000. September 19.000.732.000.000-mark .000-mark and closed at a peak of 12. 19.024.000 to the 14.327. 2006 crossed the 12.280. 14.000. 2007.000 points. 17.000.323. 2007. saw the index slip into red to 16. October 30.000-mark backed by revival of funds-based buying in blue chip stocks in metal. 2007 The Sensex scaled yet another height during early morning trade on September 26. The index zoomed to a new alltime intra-day high of 18.000 from 15.028 points.000 and closed at 13.000. It took 36 days for the Sensex to move from 13.000mark on October 09. The index gained the 16 . The Sensex finally ended with a gain of 654 points at 16. October 09. as well as the largest intra-day gains of 993 points in absolute term backed by frenzied buying after the news of the UPA and Left meeting on October 22 put an end to the worries of an impending election. Some profit taking towards the end.000 mark.

024.000.60 points. The index took only 10 trading days to gain 1. The 30-share index spurted in the last five minutes of trade to fly-past the crucial level and scaled a new intra-day peak at 20.220 amidst a negative sentiment generated on the Reserve Bank of India hiking CRR by 50 bps.50 points before ending at 5.096.822.200 mark. July 2. then pulled back and ended up at 14. and finally ended with a smart gain of 640 points at 19. 2008.000.The Nifty gained 242 points to close at 5. HDFC Bank and SBI among others.000 points after the index crossed the 19.000 mark in intra-day trading after 49 trading sessions. October 29. The NSE Nifty rose to a record high 5. The index touched a fresh all-time intra-day high of 19.90.670.977.67. The major drivers of today's rally were index Heavyweights Larsen and Toubro. However.000-mark on October 15. Bloomberg lists them as the top two gainers for the Sensex. the market had hit an all time high of 21206. on January 10th. 21.87 points before ending at its fresh closing high of 19. 2008 The sensex hit an intra day low of 12. 20.70.70 on July 2nd. Six months ago.905. 2008 The sensex touched an intra day low of 13.731 during the early trades. 2008. This was backed by high market confidence of increased FII investment and strong corporate results for the third quarter. although Reliance and Infosys continue to lead the way with mostly positive results. ICICI Bank. 2007 The Sensex crossed the 20. Indian market suffer with major downfall from January 21. Reliance Industries. closely followed by ICICI Bank and ITC Ltd 17 .last 1. This is a bad time for the Indian markets.220. it later fell back due to profit booking. This is the lowest that it has ever been in the past year. FII outflow continued in this week. showing a hefty gain of 203.922.200. June 25. January 8. a gain of 734.000 points in just four trading days. June 13.000 mark on the back of aggressive buying by funds ahead of the US Federal Reserve meeting.822.2008 14. 2008 The sensex crossed the 21. 2008 The sensex closed below 15.50 points. 12. 15.059.

an index of fifty major stocks weighted by market capitalisation. known as the Nifty.nse-india. Ravi Narain Managing Director INR 1587 US$ 1. 18 .46 trillion (2006) S&P CNX Nifty CNX Nifty Junior S&P CNX 500 http://www. 72°51′35″E National Stock Exchange of India Limited Mr. Though a number of other exchanges exist. for both equities and derivative trading. of listings MarketCap Indexes Website Stock Exchange Mumbai. India 19°3′37″N. and between them are responsible for the vast majority of share transactions.[1]. NSE and the Bombay Stock Exchange are the two most significant stock exchanges in India. The NSE's key index is the S&P CNX Nifty.com/ The National Stock Exchange of India Limited (NSE).NATIONAL STOCK EXCHANGE LIMITED Type Location Coordinates Owner Key people Currency No. It is the largest stock exchange in India in terms of daily turnover and number of trades. is a Mumbai-based stock exchange.

NSCCL was a landmark in providing innovation on all spot equity market (and later. NSE is the third largest Stock Exchange in the world in terms of the number of trades in equities. [[Image:National Stock exchange Kolkata. insurance companies and other financial intermediaries in India but its ownership and management operate as separate entities[2].[4]It is the second fastest growing stock exchange in the world with a recorded growth of 16.NSE is mutually-owned by a set of leading financial institutions. Since the success of the NSE. INNOVATIONS NSE has remained in the forefront of modernization of India's capital and financial markets. Origins NSE building at BKC The National Stock Exchange of India was promoted by leading Financial institutions at the behest of the Government of India. and its pioneering efforts include: • • Being the first national.46 trillion. it was recognized as a stock exchange under the Securities Contracts (Regulation) Act. electronic limit order book (LOB) exchange to trade securities in India. As of 2006. The Capital Market (Equities) segment of the NSE commenced operations in November 1994. anonymous. 19 . 1956. banks. 2799 in total. the NSE VSAT terminals. and was incorporated in November 1992 as a tax-paying company. In April 1993. In October 2007. cover more than 1500 cities across India [3]. while operations in the Derivatives segment commenced in June 2000. making it the second largest stock exchange in South Asia." in India. existent market and new market structures have followed the "NSE" model. Setting up the first clearing corporation "National Securities Clearing Corporation Ltd. the equity market capitalization of the companies listed on the NSE was US$ 1.6%. derivatives market) trades in India. NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994.

the NSE was permitted to start trading equity derivatives Being the first and the only exchange to trade GOLD ETFs (exchange traded funds) in India. Setting up of S&P CNX Nifty. After four years of policy and regulatory debate and formulation. NSE pioneered commencement of Internet Trading in February 2000.• • • • • • Co-promoting and setting up of National Securities Depository Limited. particularly on an equity index. which led to the wide popularization of the NSE in the broker community. in India. in 1996. NSE has also launched the NSE-CNBC-TV18 media centre in association with CNBC-TV18 MARKETS Currently. proposed exchange traded derivatives. including: • • • • • S&P CNX Nifty CNX Nifty Junior CNX 100 (= S&P CNX Nifty + CNX Nifty Junior) S&P CNX 500 (= CNX 100 + 400 major players across 72 industries) CNX Midcap (introduced on 18 July 2005 replacing CNX Midcap 200) 20 . first depository in India[2]. Being the first exchange that. NSE has the following major segments of the capital market: • • • • Equity Futures and Options Retail Debt Market Wholesale Debt Market INDICES NSE also set up as index services firm known as India Index Services & Products Limited (IISL) and has launched several stock indices.

currencies. For example. interest rates and market indexes. Branches of the NSE are located throughout India. under its programmes of NSE's Certification in Financial Markets (NCFM)[3]. Currently. DERIVATIVE In finance. but can also be used for speculative purposes. options and swaps are the most common types of derivatives. Its value is determined by fluctuations in the underlying asset. just about anything can be used as an underlying asset. To hedge this risk. Because derivatives are just contracts. certifications are available in 19 modules. he sells futures contracts. a European investor purchasing shares of an American company off of an American exchange (using American dollars to do so) would be exposed to exchange-rate risk while holding that stock. The most common underlying assets include stocks. a security whose price is dependent upon or derived from one or more is underlying assets. commodities. such as the amount of rain or the number of sunny days in a particular region. covering different sectors of financial and capital markets. forward contracts. Futures contracts. Most derivatives are characterized by high leverage. Derivatives are generally used to hedge risk. In this way he gets an assured fixed price of his produce. 21 . The derivative itself is merely a contract between two or more parties. bonds. There are even derivatives based on weather data.CERTIFICATIONS NSE also conducts online examination and awards certification. A person keeps a close watch upon the prices discovered in trading and when the comfortable price is reflected according to his wants. the investor could purchase currency futures to lock in a specified exchange rate for the future stock sale and currency conversion back into euros. speculators and arbitrators are the types of traders in derivatives market. TYPES OF TRADERS IN A DERIVATIVES MARKET Hedgers. HEDGERS: Hedgers are those who protect themselves from the risk associated with the price of an asset by using derivatives.

They handle trades for their personal clients or brokerage firms. They are never interested in actual owing the commodity. SPECULATORS: Speculators are some what like a middle man. Speculative participation in futures trading has increased with the availability of alternative methods of participation.In general. They are the second major group of futures players. Buying a futures contract in anticipation of price increases is known as ‘going long’. he can make more money in the futures market faster because prices tend. They actually bet on the future movement in the price of an asset. Take an example: A Hedger pay more to the farmer or dealer of a produce if its prices go up. For protection against higher prices of the produce. The money he puts up is not a down payment on the underlying contract. but a performance bond. yet he can ride on the full value of the contract as it moves up and down. 22 • . These participants include independent floor traders and investors. who at one point or another deal in the underlying cash commodity. Futures are highly leveraged investments. Selling a futures contract in anticipation of a price decrease is known as ‘going short’. the futures position will profit if the price of the produce rise enough to offset cash loss on the produce. Hedgers are often businesses. or individuals. Speculators have certain advantages over other investments they are as follows: • If the trader’s judgment is good. The trader puts up a small fraction of the value of the underlying contract as margin. he hedge the risk exposure by buying enough future contracts of the produce to cover the amount of produce he expects to buy. The actual value of the contract is only exchanged on those rare occasions when delivery takes place. They will just buy from one end and sell it to the other in anticipation of future price movements. Since cash and futures prices do tend to move in tandem. hedgers use futures for protection against adverse future price movements in the underlying cash commodity. to change more quickly than real estate or stock prices. on average.

`The four main functions performed by a financial system are given below: The saving function Liquidity function Payment function Risk function 23 . If he finds future prices of a commodity edging out with the cash price. lower ring the cost positive directions. a person who has been officially chosen to make a decision between two people or groups who do not agree is known as Arbitrator. money. Move over the commodity futures investor is not charged interest on the difference between margin and the full contract value FINANCIAL SYSTEM The financial system is one of the most important inventions of the modern society. There are areas or people with surplus funds as also those with a deficit. he will take offsetting positions in both the markets to lock in a profit.ARBITRATORS: According to dictionary definition. productions. A financial system is a composition of various institutions. practices.similarly. markets. Thus we find that a financial system has an impact on the basic existence of an economy and its citizens. The financial system helps to determine both the cost and the volume of credit. analysts. regulations and laws. managers. The phenomenon of imbalance in the distribution of capital of funds exists in every economy system. The system can affect a rise in the cost of funds which adversely affects consumption. employment and growth of the economy . A financial system functions as an intermediary and a facilitates the flow of funds from the areas of surplus to those of deficit. transactions and claims and liabilities. In commodity market Arbitrators are the person who takes the advantage of a discrepancy between prices in two different markets.

the cost and time for transaction are drastically reduced . The financial markets provide the investor the opportunity to liquidate the investments. the compromise one makes in such investment is (1) that the risk involved is more and (2) the degree of liquidity conversion of the claims into money is less. bonds. That is why one always prefers to store the funds in financial instruments like stocks. but its value is almost eroded by inflations. Financial claims are issued in the money and capital markets. increasing society’s standard of living when saving flows decline. 3: PAYMENT FUNCTION: The financial system offers a very convenient mode of payment for goods and services.FLOW OF FUNDS Seekers of funds (mainly business firms and government) Flow of funds Flow of financial service Income and financial claims Suppliers of funds (mainly household) 1: THE SAVING FUNCTION: The public saving finds their way into the hands of those in production through the financial system. The funds in the hands of the producers result in production of better goods and services. etc. which promise future income flows. However the growth of the investment and living standard begins to fall 2: LIQUIDITY FUNCTIONS: Of all financial instruments. debentures.while the cheque system of payment is widely practiced . the credit card system 24 . money is the form of deposits offers the least risk.in India . The cheque system and credit card system are the easiest methods of payment in the economy .

In academia. which provide financing through the issuance of shares or common stock. i. Financial markets can be domestic or they can be international. organizations that facilitate the trade in financial securities. the coming together of buyers and sellers to trade financial securities. Definition.the financial markets provide immense opportunities for the investor to hedge himself against of reduce the possible risk involved in various investments. 25 . health and income risks.e.e. 4: RISK FUNCTION: The financial markets provide protection against life. students of finance will use both meanings but students of economics will only use the second meaning. bonds and warrants. Stock exchanges facilitate the trade in stocks. 2.has entered only recently into urban India and is widely used in these areas for payments of consumption expenditure. TYPES OF FINANCIAL MARKETS The financial markets can be divided into different subtypes: Capital markets which consist of: Stock markets. and properly insurance policies . These guarantees are accomplished through the sale of life and health insurance. and enable the subsequent trading thereof. Financial markets could mean: 1. stocks and shares are traded between buyers and sellers in a number of ways including: the use of stock exchanges. directly between buyers and sellers etc. i. FINANCIAL MARKETS A financial market can be defined as the market in which financial assets are created or transferred in which financial assets represented a claim of the payment of a sum of money sometime in the future and periodic payment in the form of interest or dividend.

Newly formed (issued) securities are bought or sold in primary markets. see also forward market. which facilitate the trading of The capital markets consist of primary markets and secondary markets. which management of financial risk. which provide standardized forward contracts for trading products at some future date. Intermediaries such as banks help in this process. Commodity markets. which facilitate the redistribution of various risks. which provide short term debt financing and investment. what is their purpose? Without financial markets. i.e. Derivatives markets. Banks popularly lend money in the form of loans and mortgages. commodities. They can then lend money from this pool of deposited money to those who seek to borrow. which facilitate the trading of Money markets. The following table illustrates where financial markets fit in the relationship between lenders and borrowers: 26 . Insurance markets. A good example of a financial market is a stock exchange. let us look at what they are used for. markets.Bond markets. and where existing borrowing or lending commitments can be sold on to other parties. RAISING CAPITAL To understand financial markets. A company can raise money by selling shares to investors and its existing shares can be bought or sold. Foreign exchange foreign exchange. Secondary markets allow investors to sell securities that they hold or buy existing securities. borrowers would have difficulty finding lenders themselves. and enable the subsequent trading thereof. More complex transactions than a simple bank deposit require markets where lenders and their agents can meet borrowers and their agents. which provide financing through the issuance of Bonds. Banks take deposits from those who have money to save. provide instruments for the Futures markets.

Relationship between lenders and borrowers Lenders Financial Intermediaries Financial Markets Borrowers Individuals Companies Central Government Municipalities Public Corporations Interbank Stock Banks Exchange Individuals Insurance Companies Money Market Companies Pension Funds Bond Market Mutual Funds Foreign Exchange LENDERS Many individuals are not aware that they are lenders.) BORROWERS Individuals borrow money via bankers' loans for short term needs or longer term mortgages to help finance a house purchase. When companies have surplus cash that is not needed for a short period of time. These companies tend to be lenders rather than borrowers. Such companies may decide to return cash to lenders (e. invests in government bonds. via a share buyback. There are a few companies that have very strong cash flows. or invests in company shares. but almost everybody does lend money in many ways. pays premiums to an insurance company.g. A person lends money when he or she: • • • • • puts money in a savings account at a bank. investing in bonds and stocks.) Alternatively. They also borrow to fund modernisation or future business expansion. they may seek to make money from their cash surplus by lending it via short term markets called money markets. 27 . contributes to a pension plan. Companies borrow money to aid short term or long term cash flows. they may seek to make more money on their cash by lending it (e.g. Companies tend to be borrowers of capital.

Indeed the debt seemingly expands rather than being paid off. a major growth sector in financial markets is the trade in so called derivative products. DERIVATIVE PRODUCTS During the 1980s and 1990s. Many borrowers have difficulty raising money locally. In the UK. they need to borrow. Public Corporations typically include nationalised industries. local authorities and other public sector bodies. Governments borrow by issuing bonds. They need to borrow internationally with the aid of Foreign exchange markets. One strategy used by governments to reduce the value of the debt is to influence inflation. this would cover an authority like Hampshire County Council.Governments often find their spending requirements exceed their tax revenues. In the financial markets. the total borrowing requirement is often referred to as the public sector borrowing requirement (PSBR). It is also called financial economics. bond prices. or derivatives for short. To make up this difference. creating risk. These may include the postal services. the most obvious buyers and sellers of foreign exchange are importers/exporters. Government debt seems to be permanent. stock prices. interest rates and dividends go up and down. currency rates. Municipalities and local authorities may borrow in their own name as well as receiving funding from national governments. In the UK. the government also borrows from individuals by offering bank accounts and Premium Bonds. Derivative products are financial products which are used to control risk or paradoxically exploit risk. whereby importers/exporters created the initial demand for currency markets. Governments also borrow on behalf of nationalised industries. In the UK. importers and exporters 28 . railway companies and utility companies. While this may have been true in the distant past. municipalities. CURRENCY MARKETS Main article: Foreign exchange market Seemingly.

depends on the length of the time unit to a power a bit more than 1/2. It was discovered by Benoît Mandelbrot that changes in prices do not follow a Gaussian distribution. The claims of the technical analysts are disputed by many academics. who claim that the evidence points rather to the random walk hypothesis. This is the basis of the so-called technical analysis method of attempting to predict future changes. The scale of change.now represent only 1/32 of foreign exchange dealing. one of the founders of Dow Jones & Company and The Wall Street Journal. but are rather modeled better by Lévy stable distributions. or volatiliy. at least in the short term. such as the U. Securities and Exchange 29 .[1] The picture of foreign currency transactions today shows: • • • • • Banks and Institutions Speculators Government spending (for example. Large changes CAPITAL MARKET Capital market is an organized market for long term funds required .S. to meet the long term needs of business enterprises . The capital market is the market for securities. which states that the next change is not correlated to the last change. The capital market includes the stock market and the bond market. enunciated a set of ideas on the subject which are now called Dow Theory. One of the tenets of "technical analysis" is that market trends give an indication of the future. The scale of changes in price over some unit of time is called the volatility. Financial regulators. Charles Dow. military bases abroad) Importers/Exporters Tourists ANALYSIS OF FINANCIAL MARKETS Much effort has gone into the study of financial markets and how prices vary with time. where companies and governments can raise longterm funds. according to BIS.

 It operates as per well defined rules and regulation. FUNCTIONS OF STOCK EXCHANGE        Ready and continuous market Evaluation of securities Encouraging capital formation Providing safety and securities in dealings Encouraging public borrowing Helps speculations Regulating company management SERVICE OF THE STOCK EXCHANGE Stock exchange provides various services to companies’ investor and the society at large in the following manner: 30 . In brief. selling and dealing in securities.Commission. FEATURES  It is an organized market for buying. financial and government securities.  It is privately owned by individuals. Stock exchange also helps the public sector undertaking and the government in raising long term loans. STOCK EXCHANGE Stock exchange is an organized market for industrial. where new issues are distributed to investors. The capital markets consist of the primary market. and the secondary market. a stock market or stock exchange is a place where stocks and shares and other term securities are bought and sold as per certain rules and regulations. financial and government market for industrial.  It facilitates marketing in securities and also controls the trading activities. oversee the capital markets in their designated countries to ensure that investors are protected against fraud.  It is a recognized association and is controlled by the state under a special act. where existing securities are traded.

• • Stock exchange guides the investors choice of securities to be bought. They enable the companies to collect adequate capital for formation. is a gift to the investors.merger.therefore purchasing of listed securities because less risky. • • • LISTING OF SECURITIES: Listing of securities means including the name of the company security in the official list of the stock exchange for the purpose of trading. This enhances the financial status and increase the bargaining power of the company in the collective ventures. • Stock exchange provides a large marker for the listed securities. Listed securities get quicker and better response are from investors. in fact. Stock exchange authorities properly evaluated the listed secutities. Market value of the securities is slightly more in relation to earning and property values. • Stock exchange increases the credit standing and goodwill of the companies whose securities are listed. modernization or rationalization. 31 . regarding the Stock exchange maintains liquidity of securities by enabling the holders to sell them whenever they need liquid fund. Stock exchange provides information about the value of securities to the investors through daily quotations of listed securities.SERVICE TO COMPANIES Companies raising their capital through stock exchange will find better response to their security issues.etc • • SERVICES TO INVESTORS Stock exchange. expansion. Stock exchange provides capital for industrial growth. who gain confidence by providing continuous marketing facilities.

In all developed economic systems. Japan and other developed nations. deposit accounts and other very liquid assets with little risk made up almost 60 per cent of households' financial wealth. The general public's heightened interest in investing in the stock market. The trend towards forms of saving with a higher risk has been accentuated by new rules for most funds and insurance. Similar tendencies are to be found in other industrialized countries. such securities are called listed securities.. pension funds. either directly or through mutual funds. insurance investment of premiums. The major part of this adjustment in financial portfolios has gone directly to shares but a good deal now takes the form of various kinds of institutional investment for groups of individuals. e. the United States.g. REQUIREMENT FOR LISTING: • Certificate copies of M/A and A/A (Memorandum of association and Article of Association) • Consent of SEBI • Director report • Balance sheets • Agreement with the managing director • Agreement with underwriters • Statement showing distribution of shares RELATION OF THE STOCK MARKET TO THE MODERN FINANCIAL SYSTEM The financial system in most western countries has undergone a remarkable transformation. One feature of this development is disintermediation. permitting a higher proportion of shares to bonds. In the 1970s. etc. the trend has been the same: saving has moved away from traditional (government insured) bank deposits to more risky securities of one sort or another 32 . in Sweden. such as the European Union. mutual funds. Statistics show that in recent decades shares have made up an increasingly large proportion of households' financial assets in many countries. has been an important component of this process.it selects certain securities for transaction. hedge funds.A stock exchange does not deal in the securities of all the companies . compared to less than 20 per cent in the 2000s. A portion of the funds involved in saving and financing flows directly to the financial markets instead of being routed via banks' traditional lending and deposit operations.

only folly. The following deals with some of the risks of the financial sector in general and the stock market in particular.e. AND FINANCIAL RISK Riskier long-term saving requires that an individual possess the ability to manage the associated increased risks. individual investors. i. Yet. financial writers. Stock prices fluctuate widely. investors find it increasingly difficult to profit. real estate and collectables). and market strategists are all overtalking each other to get investors' attention.THE STOCK MARKET. but also the economy on a large scale. Stock prices skyrocket with little reason. are exchanging questionable and often misleading tips. or have acquired other 'risky' investments (such as 'investment' property. analysts. and people who have turned to investing for their children's education and their own retirement become frightened. INDIVIDUAL INVESTORS. immersed in chat rooms and message boards. the noise level in the stock market rises. 33 .. then plummet just as quickly. Television commentators. in marked contrast to the stability of (government insured) bank deposits or bonds. despite all this available information. This is something that could affect not only the individual investor or household. With each passing year. Sometimes there appears to be no rhyme or reason to the market. At the same time. This is certainly more important now that so many newcomers have entered the stock market.

This is a quote from the preface to a published biography about the long-term value-oriented stock investor Warren Buffett.000 from seven limited partners consisting of Buffett's family and friends. 34 . The quote illustrates some of what has been happening in the stock market during the end of the 20th century and the beginning of the 21st.[2] Buffett began his career with $100. Over the years he has built himself a multi-billion-dollar fortune. and $105.

kotak securities ltd has been the largest in IPO distribution.PROFILE OF BROKING HOUSE IN THE STOCK MARKET KOTAK SECURITIES: Kotak securities ltd is India leading stock broking house with a market share of close to 9% as on 31 march 2007. The company has a full fledged research division involved in macro economic studies sect oral research and company specific equity research combined with a strong and well networked sales force which helps deliver current and up to date market information and news Kotak securities ltd is also national securities depository a depository participant with limited and central depository 35 .

sharekhan..com was launched in 2000 . The portfolio management service provides top class service catering to the high end of the market. in the investment advisors category Share khan equity related services include trade execution on BSE. Portfolio management from kotak securities comes as an answer to those who would like to grow from exponentially on the crest of the stock market. Kotak securities com the online division of kotak securities limited offers internet broking services and also online IPO and mutual fund investment A Kotak security limited manages assets around 2300 crores of assets under management. Kotak securities have 813 outlets servicing more than 315000 customers and a coverage of 277 cities. Sharekhan. the retail broking arm of SSKI group and one of the largest stock broking house in the country has won the prestigious awaaz consumer vote awards 2005 for the most preferred stock broking brand in India.providing dual benefits services where in the investor can use the brokerage services of the company for executing the transactions and the depository service for settling them. 36 .sharekhan online trading and investment site www.NSE derivatives commodities depository services online trading and investment advice . with the backing of an expert.service limited .

Pune in 1962 and has today grown to become the country’s largest integrated share transfer and ranks 37 .Sharekhan Bag round network includes over 250 centres across 123 cities in India and having around 120000 customers and equal number of demat customers. which types more earn money in the through the share market. Mutual funds. the study initiated by awaaz India first dedicated consumer channel and member of the world wide CNBC network and ac Nielsen org marg was aimed at understanding the brand preference of the consumer and to decipher what are the most important loyalty criteria for the consumer in each vertical In order to select the award recipient spontaneous responses rather than prompted responses were garnered with an intention to glean unbiased preferences. intangible preference features like imagery. Commodities and Mutual funds are in this firm. This is only Share and Equity broking firm in India. a flagship broking firm in the share market. Share Khan commissioned its shares and equities at Satara Road. is structured into strategic businesses —Equities. The head office of Share Khan is in the Mumbai. The reason behind the preferences for brands were unveiled by examines the following: • • • Tangible features of product /service Softer. equity driving Tactical measures such as promotional /pricing schemes ABOUT THE COMPANY Share Khan Limited. Sharekhan won the award by vote of customer around the country. as part of India largest consumer study cover 7000 respondents 21 product and service across 21 major cities. Share. This is not only Share but bulk of the commodities. Share khan give to more information how to invest in the share market. this is one of the branches in the Pune. Established in 1958.

Share Khan acquired two captive markets in Nifty. With a strategic intent to achieve vertical integration in the share business. BSE and NSE. Customer provided financing exists when a customer pays for services before they are delivered. unsecured credit terms. e.among the top quartile of low broking intra day and delivery charges in the world. MEANS OF FINANCING Financing a company through the sale of stock in a company is known as equity financing.g. usually 30 days. Unofficial financing known as trade financing usually provides the major part of a company's working capital (day-to-day operational needs). Alternatively. Trade financing is provided by vendors and suppliers who sell their products to the company at short-term. debt financing (for example issuing bonds) can be done to avoid giving up shares of ownership of the company. Equity and debt financing are usually used for longer-term investment projects such as investments in a new factory or a new foreign market. subscriptions and insurance MARKET SHARE ANALYSIS 38 .

but the bad news is that you are also expected to bear the losses. i.e. There are basically two ways in which you can invest in shares:  Purchase shares from The primary market (I. Compared to your investments in fixed deposits in banks it makes more profits. Stock exchanges 39 .OTHER BENEFITS OF INVESTING IN SHARES? Because they can make big money on it.e. if any. IPO's)  Trade in the Secondary Market.  1) Possibility of high returns  2) Easy liquidity  3) Unbeatable tax benefits  4) Income from dividends SO HOW DOES ONE BUY SHARES? .

Some of the criteria they follow include: 1) Market capitalization.They are selected by the Index committee. 4) Industry representation. 2) Liquidity. 5) Listed history 40 . 3) Continuity.

) 300/800/3000/4100/- TATA INFOSYS IBM TOTAL MARKET CAP Face value=Rs. Company No.428 41 . of Market shares Price on 09/02/06 10 20 20 20/30/100/M a r k e t c a pM a r k e t (Rs.COMPUTATION OF STOCK INDEX: A stock market may either be a price index or a wealth index.) Price on 18/02/06 200/600/2000/2800/30/40/150/Market cap (Rs.10/Base value=100/Index present value= (100*4100)/2800= 146. In India most of the indices are using wealth index for computation of stock market.

Equities and derivatives trading. the Stock Exchange. It has recently launched its Investment banking and Institutional Broking business. India Infoline Limited and its wholly-owned subsidiaries.com/and http://www.The India Infoline group. Life Insurance.indiainfoline.com/ The company has a network of 758 business locations (branches and sub-brokers) spread across 346 cities and towns. Commodities trading. It is engaged in the businesses of Equities broking.000 customers India Infoline Limited is listed on both the leading stock exchanges in India. viz. GoI bonds and other small savings instruments to loan products and Investment banking. It has more than 800.5paisa. providing a one-stop solution for clients trading in the equities market. It offers broking services in the Cash and Derivatives segments of the NSE as well as the Cash segment of the BSE. Portfolio Management Services. Mumbai (BSE) and the National Stock Exchange (NSE) and is also a member of both the exchanges. Wealth Advisory Services and Portfolio Management Services. 42 . comprising the holding company. It is registered with NSDL as well as CDSL as a depository participant. straddle the entire financial services space with offerings ranging from Equity research. Fixed deposits. India Infoline also owns and manages the websites http://www. Mutual Funds.

Bonanza confidently steers you through a challenging Financial and Trade Market every moment. Integrated and innovative use of Technology enabling clients to trade offline.online and Strategic tie-ups with latest technology partners to facilitate trading access and direct processing across more than 900 Branches spread over 310 cities . Key elements that place Bonanza amongst the leading Brokerage Houses and make it the preferred service provider for value based financial services are: • • • A Client-driven foundation and strategy committed to client-specific investment needs and objectives. through a network of experienced dealers across the country.Bonanza is a leading Financial Services & Brokerage House with acknowledged industry Leadership in execution and clearing services on Exchange Traded Derivatives and cash market products. 43 . whether you are present or not! EQUITY Being a member of the National Stock Exchange (NSE). and through our comprehensive website. Client-focused philosophy backed by memberships of all principal Indian Stock and Commodity Exchanges makes Bonanza a preferred service provider in the Industry for value based services. Bombay Stock Exchange (BSE) and dealer with Over the Counter Exchange of India (OTCEI) we handle your trading needs.

000 active accounts. Karvy has 575 offices over 375 locations across India and overseas at Dubai and New York. 44 . India. Karvy Realty Services. member of National Stock Exchange of India and the Bombay Stock Exchange. Member of NCDEX and MCX ranks among the top 3 commodity brokers in the country. Karvy Insurance Brokers is registered as a Broker with IRDA and ranks among the top 5 insurance agent in the country. ranks among the top 5 stock brokers in India.000 highly qualified people staff Karvy. Karvy Stock Brokers Limited.000 crores under management. which started in 2006. Karvy ranks among the top player in almost all the fields it operates. in the realty sector. Karvy Comtrade. With over 6. managing over 2 crore accounts. 5. Karvy Computershare Limited is India’s largest Registrar and Transfer Agent with a client base of nearly 500 blue chip corporates. it ranks among the top 5 Depositary Participant in India. Registered with AMFI as a corporate Agent. has quickly established itself as a broker who adds value. Over 9. Karvy is also among the top Mutual Fund mobilizer with over Rs. Karvy Global offers niche off shoring services to clients in the US.US The Karvy group was formed in 1983 at Hyderabad.00. registered with NSDL and CDSL.

free in house literature and interactive site sessions raise awareness levels on the futures market. Mumbai (MCX National Commodity and Derivative Exchange. 45 . Local. unbiased investment advise with the objective of achieving sustainable superior investment returns for our clients To provide flawless execution support to meet diverse client needs on a platform of professionalism and integrity. We have membership with two of the major Commodity exchanges of the country. Consequently. large numbers of informed participants enter the trading process resulting in increased volumes and market efficiency. Seminars. Mumbai (NCDEX Large numbers across the country participate in the futures market through Emkay's rapidly expanding online trading terminal network extending to even remote areas. national and international agri-information is disseminated through the company's large branch network. Multi Commodity Exchange of India Ltd.ABOUT EMKAY Emkay offers futures trading through "Emkay Corporate Services (P) Ltd.". OUR MISSION To provide research driven.

2000. A partial list is provided below. 3. Director of Emkay was a member of the first Governing council on derivatives segment of BSE. Prakash Kacholia.OUR VALUES To be fair. Birla Sun life Mutual Fund Deutsche Asset Mgt (India) Pvt. To always earn and be worthy of our customer's trust THE JOURNEY Emkay’s institutional clientele includes some of the largest players in the Fund Management business. 4. 6. 2. The first Sensex Futures Contract was executed by Emkay on June 09. empathetic and responsive in serving our customers To respect and reinforce our fellow employees and the power of teamwork To strive relentlessly to improve what we do and how we do it. 3. Mr. He has been the moving spirit behind India’s first EXCHANGE TRADED FUND named SPICE based on the BSE SENSEX launched by Prudential ICICI MF 46 ... 5. 2. 1. Ltd Franklin Templeton Mutual Fund HDFC Standard Life Mutual Fund Prudential ICICI Mutual Fund TATA Mutual Fund Emkay has considerable strength and Domain Knowledge in the booming Derivatives market 1.

where the bans were lifted. This has led to a mindset in the common man in the country that commodity exchanges are purely speculative in nature. In an era where risks to investments are on the rise and India being predominantly an agrarian economy. needs to switch to commodity derivatives to top the list of developed nations. The hedging and price discovery functions that they perform are largely ignored today by the cross section of the population. Also large informal trading. 47 .COMMODITY FUTURES TRADING THROUGH: COMMODITY MARKET India has a deep ingrained knowledge in commodity trading (and particularly forward trading in commodities). Education and awareness has a key role to play in achieving this vision WHY COMMODITY MARKET? Commodity derivatives records high volumes in the markets the world over compared to equity derivatives. In these intervening years. Our endeavor is to reach to the producers. have carried on the baton. especially in the interior heartland. some regional exchanges specializing in specific commodities. such forward (futures) trading was banned in the country for a variety of reasons and it is being revived now. Fortunately much of the skill sets have migrated to stock exchanges. and even the retail investors. at a grassroots level. For last 40 years or so. endusers. The ban has meant that two generations have lost touch with the trading skills and the related knowledge levels in the commodity space. primarily by the speculative segment of the universe of market participants has remained.

prices in commodities futures have been less volatile compared with equity and bonds. For those who want to diversify their portfolios beyond shares.UNDERSTANDING THE COMMODITIES MARKETS 24 hrs GOLD Spot Price Indian markets have recently thrown open a new avenue for retail investors and traders to participate: c o m m o d i t y2 4 h r s S I L V E R S p o t P r i c e derivatives. s a v v y i n v e s t o r s . the one for commodity futures plays a valuable role in information pooling and risk sharing. 48 . bonds and real estate. Retail investors should understand the risks and advantages of trading in commodities futures before taking a leap. a r b i t r a g e u r s a n d$ c h a n g e . Historically. Commodities actually offer i m m e n s e p o t e n t i a l t o b e c o m e aL i v e Q u o t e s s e p a r a t e a s s e t c l a s s f o r m a r k e t -G o l d a n d S i l v e r ( c u r r e n t b i d . l o w ) speculators. Commodities are easy to understand and are based on the fundamentals of demand and supply. commodities is one of the best options. The market mediates between buyers and sellers of commodities thus making the underlying market more liquid. h i g h . Like any other market. thus providing an efficient portfolio diversification option.

As at June 30.68 bn.18 times in turbulent market conditions. the company showed a strong top line growth of 91% to Rs. We are headquartered in Mumbai and as of June 30. For year ended March 2008. financial institutions and corporate clients. 2008.48% of its equity with two leading private equity investors based out of the US – New Vernon Private Equity Limited and Bessemer Venture Partners. the Company placed 9. foreign institutional investors. had a network spread over 450 cities and towns comprising 1. asset management and fund based activities have contributed to this growth. 2008. ethical and transparent business practices.7 bn as compared to Rs.3. In 2006. the group networth was Rs. Focus on customer-first-attitude. with just two people running the show.Motilal Oswal Securities Ltd.7 bn and market capitalization as of March 31. last year.5 per share) got a overwhelming response and was subscribed 27. respect for professionalism. mutual funds. New businesses like investment banking. The issue which was priced at Rs.496 Business Locations operated by our Business Partners and us.648 registered customers. research-based value investing and implementation of cutting-edge technology has enabled us to blossom into an almost 2000 member team.19 bn. Today we are a well diversified financial services firm offering a range of financial products and services such as • • • • • • • • Wealth Management Broking & Distribution Commodity Broking Portfolio Management Services Institutional Equities Private Equity Investment Banking Services and Principal Strategies We have a diversified client base that includes retail customers (including High Net worth Individuals). was founded in 1987 as a small sub-broking unit.825 per share (face value Rs. 2008 was Rs. The company got listed on BSE and NSE on September 9. we had 486. 49 . The issue gave a return of 21% on the date of listing. As of end of financial year 2008. 2007.

the internet and mobile channels. These are provided to customers through our Wealth Management service called ‘Purple’ BROKING & DISTRIBUTION SERVICES • • • • • • • Equity (cash and derivatives) Commodity broking Portfolio Management Services Distribution of financial products Financing Depository Services IPO distribution We offer these services through our branches.08 (YoY) 701 270 156 91% 97% 100% Credit rating agency Crisil has assigned the highest rating of P1+ to the Company’s short-term debt program.37%. Shareholding Pattern at on June 30.78% and non-institutions at 12. the total shareholding of the Promoter and Promoter Group stood at 70. 2008 As of 30th June. Crores Total Revenues EBIDTA PAT FY Growth 2007. OUR BUSINESS STREAMS Our businesses and primary products and services are: WEALTH MANAGEMENT Financial planning for individual.Rs. COMMODITY BROKING 50 . 2008. family and business wealth creation and management needs. Business Partner locations.26%. The shareholding of institutions stood at 9. We also have strategic tie-ups with State Bank of India and IDBI Bank to offer our online trading platform to its customers.

Motilal Oswal group has applied to the regulatory bodies for a license to operate as a Domestic Asset Management Company (Mutual Fund) and we expect to begin operations soon. we were empanelled with over 300 institutional clients including 191 FIIs.6.92 bn. and FIIs. These clients include companies. INSTITUTIONAL EQUITIES We offer equity broking services in the cash and derivative segments to institutional clients in India and overseas. Besides access to the best of research in the form of Daily Fundamentals & Technical Reports on highly traded commodities. mutual funds. These include the Value PMS. financial institutions. the internet and mobile channels PORTFOLIO MANAGEMENT SERVICES Motilal Oswal Portfolio Management Services offer a range of investments solutions through discretionary services. our clients also get access to our exclusive Customized Trading Advice on both the trading platforms. INVESTMENT BANKING 51 . We service these clients through dedicated sales teams across different time zones. insurance companies. 2008. We at Motilal Oswal have helped create wealth for our customers through our Portfolio Management Services.Through Motilal Oswal Commodities Broker (P) Ltd our fully owned subsidiary. We offer these services through our branches. Trillion Dollar Opportunity and Focused Portfolio Series I. 2008. the assets under management of our various portfolio schemes stood at Rs. banks. Bulls Eye PMS. Our knowledge of the markets together with our understanding of our customers and their risk profiles has helped us design a range of portfolio offerings for our clients. As of June 30th. we provide commodity trading facilities and related products and services on MCX and NCDEX. As at March 31. Business Partner locations.

the fund obtained commitments of US$125 mn (Rs.8 billion and had 18 mandates in hand as at March 31. India Business Excellence Fund. (MOIAPL) We also offer capital raising and other investment banking services such as the management of public offerings. In its final closing. MOVCAPL has recently launched an INR 750 crores domestic Real Estate Private Equity Fund called “India Realty Excellence Fund” sponsored by Motilal Oswal Financial Services Ltd.4. in December 2007.We offer financial advisory services relating to mergers and acquisitions (domestic and cross-border). PRIVATE EQUITY In 2006. our private equity subsidiary. restructurings and spin-offs through Motilal Oswal Investment Advisors Private Ltd. which may be raised in the future. the Group has set up a 30 member team which would be responsible for effective deployment of funds into different trading and arbitrage strategies. with investments typically in the range of US$3 mn to US$7 mn.875 mn) from investors in India and overseas. 2008. private placements (including qualified institutional placements). FOCUS ON RESEARCH 52 . MOIAPL has closed 23 transactions in 2007-08 worth US$ 1. divestitures. open offers/delistings and syndication of debt and equity. The fund is aimed at providing growth capital to small and medium enterprises in India. The Fund has deployed/ committed $ 58 mn across 8 deals. Motilal Oswal Venture Capital Advisors Private Ltd (MOVCAPL) was appointed as the investment manager and advisor to a private equity fund. rights issues. MOVCAPL will manage and advise the fund and other private equity funds. share buybacks. PRINCIPAL STRATEGIES GROUP For effective management of treasury operations and to capitalize on market opportunities. which was launched with a target of raising US$100 mn.

technical and derivatives research perspective. Raamdeo Agrawal. talented and confident individuals. Investors keenly await this annual study for the wealth of information it has on the companies that created wealth during the preceding five years. is now in its 13th year. Raamdeo Agrawal. Mr. We believe that our management's entrepreneurial spirit. strong technical expertise. At present we have 28 equity analysts researching over 27 sectors. Our talented pool of people comprises qualified and experienced professionals with an established track record. Almost 10% of revenue is invested on equity research and we hire and train the best resources to become advisors. From a fundamental. Motilal Oswal's research reports have received wide coverage in the media (over a 1000 mentions last year). authored by Mr. Managing Director. STRONG MANAGEMENT TEAM The organization finds its strength in its team of young.Research is the solid foundation on which Motilal Oswal Securities advice is based. Our consistent efforts towards quality equity research has reflected in an increase in the ratings and rankings across various categories in the AsiaMoney Brokers Poll over the years Our unique Wealth Creation Study. insight into market/customer needs provide us with a competitive strength which will help us implement our business 53 . leadership skills. Qualified professionals carry out different functions under the able leadership of its promoters. Motilal Oswal and Mr.

Harrison & Co. is one of the leading integrated financial services groups of India. diversify and introduce offerings benchmarked against global best practices. With a view to expand.Aegon for its Asset Management and Life Insurance businesses in India. Institutional and Wealth spectrums. Religare has entered into joint ventures with the global major. The vision is to build Religare as a globally trusted brand in the financial services domain and present it as the ‘Investment Gateway of India’. Macquarie Bank. Hichens. the Retail. Religare has also partnered with Vistaar Entertainment to launch India’s first Film Fund. plc.Religare Enterprises Limited (REL). 54 . the group has also started expanding globally and has acquired London’s oldest brokerage & investment firm. Religare’s wealth management subsidiary is now rechristened as Religare Macquarie Wealth Management Limited. All employees of the group guided by an experienced and professional management team are committed to providing financial care. following a joint venture with the Australia based financial services major. REL’s businesses are broadly clubbed across three key verticals. backed by the core values of diligence and transparency. REL offers a multitude of investment options and a diverse bouquet of financial services and has a pan India reach in more than 1550 locations across more than 460 cities and towns. catering to a diverse and wide base of clients. As part of its recent initiatives. Following this acquisition Religare now proposes to operate out of 10 countries.

OUR GROUP STRUCTURE Religare Enterprises Limited Religare Securities Limited • • • • • Equity Broking Portfolio Management Services Depository Online Investment Portal Institutional Equity Broking Religare Finevest Limited• Lending and Distribution business Religare Commodities Limited – • Commodity Business Religare Insurance Broking Limited • • Life and Non Life Insurance Reinsurance Religare Capital Markets Limited • • • Investment Banking SEBI Registered Merchant Banker Acquisition in UK through an international arm Religare Arts Initiative Limited • • Art Fund and other businesses of Art Gallery to be launched soon Religare Realty Limited – • Real Estate Management Company Religare Venture Capital Private Limited • Private Equity and Investment Manager 55 .

diligent approach Powerful Research & Analytics and One of the “best in class” dealing rooms Further. This means. We ensure you have a superlative trading experience through • • • A highly process driven. you can walk into any of these branches and connect to our highly skilled and dedicated relationship managers to get the best services. Aegon and BCCL for Life insurance business in India EQUITY & DERIVATIVES Trading in Equities with Religare truly empowers you for your investment needs. Religare also has one of the largest retail networks. How will we Personal Assistance • • make trading easier and better? Dedicated Relationship Managers Dedicated dealers who facilitate trading and serve your post trade needs 56 . with its presence in more than 1300 locations across more than 400 towns & cities. Joint Venture between REL.Religare Macquarie Wealth Management Limited • 50: 50 joint ventures management business with Macquarie for wealth Religare AEGON AMC • - 50:50 Joint Venture between REL and Aegon for Asset Management business in India AEGON Religare Life Insurance • • Life Insurance Company.

• • • • • Stock specific selection procedure based on fundamental research for making sound investment decisions. growth and financial performance. Capital preservation.INVESTMENT PHILOSOPHY We believe that our investors are better served by a disciplined investment approach. and use of Derivatives to control Overall to enhance absolute return for investors. which combines an understanding of the goals and objectives of the investor with a fine tuned strategy backed by research. It is suitable for the “High Risk High Return” investor with a strategy to invest across sectors and take advantage of various market conditions. OUR SCHEMES PANTHER The Panther portfolio aims to achieve higher returns by taking aggressive positions across sectors and market capitalizations. Focus on minimizing investment risk by following rigorous valuation disciplines. Selling discipline volatility. as these companies have steady performance and reduce liquidity risk in the market. ELEPHANT The Elephant portfolio aims to generate steady returns over a longer period by investing in Securities selected only from BSE 100 and NSE 100 index. This plan is suitable for the “Low Risk Low Return” investor with a strategy to invest in blue chip companies. TORTOISE The Tortoise portfolio aims to achieve growth in the portfolio value over a period of time by way of careful and judicious investment in fundamentally sound companies having good prospects. 57 . The scheme is suitable for the “Medium Risk Medium Return” investor with a strategy to invest in companies which have consistency in earnings.

The investment strategy would be to invest in scrips which are poised to get a re-rating either because of change in business. Exposure to Derivatives is taken within permissible regulatory limits. business diversification leading to a better operating performance. FCCB. GDR/ADR etc. Investment Banking with Religare offers the following services: CORPORATE FINANCE We focus on finding right and relevant partners for our clients.CATERPILLAR The Caterpillar portfolio aims to achieve capital appreciation over a long period of time by investing in a diversified portfolio. ECB. integrated and best-fit solutions to our corporate customers. stocks in their early stages of an upturn or for those which are in sectors currently ignored by the market. LEO Leo is aimed at retail customers and structured to provide medium to long-term capital appreciation by investing in stocks across the market capitalization range. This scheme is a mix of moderate and aggressive investment strategies. MERCHANT BANKING • • • • IPO/FPO/RIGHTS Mergers & Acquisitions Corporate Advisory Services ADR/GDR/FCCB 58 . who not only help in adding value but also improve the future valuation of the organization. This scheme is suitable for investors with a high risk appetite. INVESTMENT BANKING We provide innovative. Its aim is to have a balanced portfolio comprising selected investments from both Tortoise and Panther. It is our continuous endeavor to provide value enhancement through diverse financial solutions on an ongoing basis. through offerings like Corporate Debt. Private Equity. potential fancy for a particular sector in the coming years/months. We specialize in structured financing and providing advisory services related to financial planning. modeling and advising on financial requirements. IPO.

“Indiabulls Financial Services Ltd is listed on the National Stock Exchange.300 million (31st December. derivatives trading. 2007). loan against shares and mortgage & housing finance. Indiabulls helps its clients to satisfy their customized financial goals. Business of the company has grown in leaps and bounds since its inception. During the same period. Consolidated net worth of the group is around USD 905 million (31st December. Some of the large shareholders of Indiabulls are the largest financial institutions of the world such as Fidelity Funds.” Indiabulls Financial Services Ltd 59 . a respected US based investment firm. Indiabulls serves the financial needs of more than 4. depositary services. The market capitalization of Indiabulls is around USD 6. With around 4000 Relationship Managers. Morgan Stanley and Farallon Capital. Indiabulls became the first company to bring FDI in Indian Real Estate through a JV with Farallon Capital Management LLC. profits of the company grew at a CAGR of 184%. consumer secured & unsecured credit.50. Bombay Stock Exchange and Luxembourg Stock Exchange. Indiabulls and its group companies have attracted more than USD 800 million of equity capital in Foreign Direct Investment (FDI) since March 2000. 2007). Revenue of the company grew at a CAGR of 159% from FY03 to FY07. Indiabulls has demonstrated deep understanding and commitment to Indian Real Estate market by winning competitive bids for landmark properties in Mumbai and Delhi. Merrill Lynch. Indiabulls through its group companies has entered Indian Real Estate business in 2005. Goldman Sachs.• BUY BACK OF SHARE ABOUT INDIABULLS Indiabulls is India’s leading Financial Services and Real Estate company having over 640 branches all over India.000 customers with its wide range of financial services and products from securities. It is currently evaluating several large-scale projects worth several hundred million dollars. research & advisory services.

.50 HOW HOT IS THIS STOCK? 52wk H/L (Rs) 1028.30 128.85 92.213.00 29 Aug.45 44.278.65 130.45 Change Volume Day 's H/L (Rs) 18. Action Compare Compare Compare Compare Compare Compare Compare Compare Compare Compare Company + HDFC (Sensex) + Bajaj Finserv Ltd.55 (8. VS.50 .01%) 3300365 255.00 . (A) + India Infoline (A) + Indiabulls Securitie (A) + LIC Housing Fi (A) + Power Finance Co (A) + Reliance Capital (A) Close (Rs) 2.Last traded Time Prev Close 250.293. (A) + Edelweiss Capital Lt (A) + IDFC (A) + IFCI Ltd. 16:01 231.90 543.05 520.00 Mkt Cap (Rs Cr) 6337.65 1. INDIABULLS FINANCIAL SERVICES LTD.75 68.238.25 60 .10 326.00 Price* Volume* MF holdings Sales Net profit margin * Computed on last 15 days' trading figures..

On a year-on-year basis.40. 61 .59% over Rs.9%).02%) and ABN AMRO Mutual Fund (14.36%). the industry asset base for July 2008 stood at Rs.Net inflow in Mutual Fund is Rs. JP Morgan Mutual Fund (15. 9. As per the numbers released by the Association of Mutual Funds in India.513. the top three funds witnessed a rise in the AUM including ABN Canara Robeco Mutual Fund (16. In the month of July 2008.71 crore as of July 2007.699 crore.724 crore. 5. 86.899 crore in June 2008. up from Rs.MUTUAL FUND Assets Under management as on 31st July 2008 Assets Under management as on 31st July 2008 The Indian mutual fund industry saw an increase in growth with assets under management (AUM) rising to Rs. an increase of 3.623 crore.21. 4. 5.18. the industry’s growth in assets has been 11%.

Private Clients. while maintaining the highest standards of excellence. The firm's philosophy is entirely client centric. In year 2007 Citigroup Venture Capital International joined the group as a financial partner BROKERAGE & DISTRIBUTION Equity & Derivatives Brokerage AnandRathi provides end-to-end equity solutions to institutional and individual investors. with a clear focus on providing long term value addition to clients. commodities. Consistent delivery of high quality advice on individual stocks. AR provides a breadth of financial and advisory services including wealth management. AnandRathi.ABOUT US AnandRathi is a leading full service securities firm providing the entire gamut of financial services. ethics and professionalism. structured products all of which are supported by powerful research teams. They are supported by dedicated sales & trading teams in our trading desks across the country. today has a pan India presence as well as an international presence through offices in Dubai and Bangkok. brokerage & distribution of equities. founded in 1994 by Mr. 62 . Research and investment ideas can be accessed by clients either through their designated dealers. web or SMS. email. Clients can trade through us online on BSE and NSE for both equities and derivatives. The entire firm activities are divided across distinct client groups: Individuals. mutual funds and insurance. The firm. corporate advisory. investment banking. sector trends and investment strategy has established us a competent and reliable research unit across the country. Corporates and Institutions and was recently ranked by Asia Money 2006 poll amongst South Asia's top 5 wealth managers for the ultrarich.

guar gum and spices such as sugar. we provide our clients customized advice on hedging strategies. chana. guar. Our success lies in our philosophy of providing consistently superior. Commodities broking is supported by a dedicated research cell that provides both technical as well as fundamental research. jeera and cotton. 63 . We firmly believe in the importance of selecting appropriate asset allocations based on the client's risk profile. agri-commodities such as wheat. Our research covers a broad range of traded commodities including precious and base metals. Our commodities broking services include online futures trading through NCDEX and MCX and depository services through CDSL. In addition to transaction execution. We have a dedicated mutual fund research cell for mutual funds that consistently churns out superior investment ideas. picking best performing funds across asset classes and providing insights into performances of select funds. DEPOSITORY SERVICES AR Depository Services provides you with a secure and convenient way for holding your securities on both CDSL and NSDL. Our depository services include settlement. clearing and custody of securities.MUTUAL FUNDS AR is one of India's top mutual fund distribution houses. CDSL Depository NSDL Depository COMMODITIES Commodities broking. registration of shares and dematerialization.A whole new opportunity to hedge business risk and an attractive investment opportunity to deliver superior returns for investors . investment ideas and arbitrage opportunities. Oils and Oilseeds. independent and unbiased advice to our clients backed by in-depth research. We offer you daily updated internet access to your holding statement and transaction summary.

we provide to our clients comprehensive risk management techniques. Online filling of forms is also available. Our services • • • • • • Risk Management Due diligence and research on policies available Recommendation on a comprehensive insurance cover based on clients needs Maintain proper records of client policies Assist client in paying premiums Continuous monitoring of client account Assist client in claim negotiation and settlement IPO’s We are a leading primary market distributor across Our strong performance in IPOs has been a result experience in the Primary Market. strong distribution capabilities and research the country. of which insurance is an integral part. 64 .INSURANCE BROKING As an insurance broker. a wide network across India. Our guiding philosophy is to manage the clients' entire risk set by providing the optimal level of cover at the least possible cost. both within the business as well as on the personal front. The entire sales process and product selection is research oriented and customized to the client's needs. of our vast of branches a dedicated team We have been consistently ranked among the top 10 distributors of IPOs on all major offerings. Risk management includes identification. We lay strong emphasis on timely claim settlement and post sales services. Our IPO research team provides clients with indepth overviews of forthcoming IPOs as well as investment recommendations. The firm deals with both life insurance and general insurance products across all insurance companies. measurement and assessment of the risk and handling of the risk.

Corporate Finance The AR Corporate Finance team helps clients manage their debtfinancing needs by profiling business and cash-flow risks. 65 . tenure. The Corporate Finance team has handled assignments in businesses like paper. fixed-floating. The team has also built an impressive track-record in debt restructuring based on its superior understanding of business needs and relationships with key lenders.INVESTMENT BANKING AR Investment Banking provides comprehensive services to clients including raising money in the equity capital markets to identifying strategic alliances. defining the alternative sources of funding . mergers and acquisition opportunities and debt financing & restructuring advisory. textiles and sugar. building in multiple variables such as currencies. hospitality. telecom. collateral etc. in a comprehensive manner and finally negotiating with the prospective lenders / buyers.

To review the concept and technique of price and trend analysis 66 . To understand the financial.RESEARCH OBJECTIVE STATEMENT OF PROBLEM Are people really getting benefits from the various predictions being made by the analysis? Objective of the research project • • • • • • • To understand the importance of economic analysis of firm as a producing unit To learn the role of money. and banking system. To explain analysis of equity data. To explain stock exchange. To understand the function of financial system. money and capital market.

• • • To asses the advantage and disadvantage of stock prediction If possible to design how stock prediction technique. To make the people move aware about market 67 .

RESEARCH METHODOLOGY AND LIMITATION RESEARCH DESIGN Problem is complex and real in nature. lot of efforts have undergone for the research by meeting various people and asking them about their experience . DEFINING THE OBJECTIVES: The aim of this project as has already been mentioned was to “sales and analysis of mutual funds.various people have undergone huge losses in the stock market lot of material has been collected from the internet. The research methodology consisted following steps: 1.” For this our research contains two parts68 .

questionnaires that act as tools for collecting data. But other approaches also used such as observation research. books. the information is collected. from primary and secondary data. company magazines. ii. Secondary data means that to get the data from the internet. We collect the secondary data through Internet. DATA COLLECTION: Base on the above questionnaire data are collected by survey methods. COLLECTING THE INFORMATION With respect to primary and secondary data. talking with people and convince. 2. 1. various company broachers. talking with people. DEVELOPING THE RESEARCH PLAN: This step called for decision on the data sources. Primary data tells us present scenario of financial market. SAMPLING METHOD: 69 . journals and magazines of the company. and used to generate information as required.  RESEARCH APPROACH The research approach adopted here was the survey method. SECONDARY DATA This type of data already exists.  DATA SOURCES Data was collected various sources are: i. To sale the products we have to first generate database on the basis of marketing research. The PRIMARY DATA This type of data does not exist. 3. Analysis of different schemes of share market. it is originated by primary sources like personal interaction or field back forms. b.a. sampling plan and contact methods.

The questionnaire consists of closed ended questions.. 70 . DATA ANALYSIS: 3. percentage method was used. The Analysis of survey has been done on % basis. SECONDARY DATA The secondary data was collected by referring through web sites. A part of Questionnaire was targeted to know the personal details of the respondents. DATA ANALYSIS For analyzing the data obtained after conducting the survey. is Random Sampling.. All the views and data obtained were also interpreted as clearly as possible.  STUDY The present investigation is a descriptive and marketing type of study undertaken to estimate the comparative study of share market analysis. The present study identifies views of customers & analysis of share market along with the selfanalysis. Another part comprised of the selfdesigned questionnaire and will consist of closed ended questions with every question having its own importance and meaning. The questionnaire designed was given to us from our immediate boss. DATA COLLECTION PRIMARY DATA The primary data to be selected was based upon the response of the respondents to the questionnaire designed. and the final data was analyzed systematically to achieve the desired result. The sampling method. 2. which is adopted.

The target group of the respondent was job holders and an earning person whatever his/her age may be.  SAMPLING METHOD The sampling method chosen for the project was “Random Sampling”. COMPARATIVE ANALYSIS AND INTERPRETATIONS ANALYSIS OF MALES AND FEMALES SURVEYED: 71 . This type of sampling is also known as chance sampling or probability sampling where each and every item in the population has an equal chance of inclusion in the sample and each one of the possible samples. SAMPLE SIZE For the purpose of analysis a sample size of respondents was selected. This procedure gives each item an equal probability of being selected. The sample size taken was 60.

Thus. it was found that out of customers were males and was females. lot of efforts have been .27% m ale fem ale 73% male and female 50 45 40 35 30 25 20 15 10 5 0 male female male female BRIEF ANALYSIS The diagram helped us in judging the number and percentage of males and females after conducting the survey. LIMITATION OF STUDY 1.like undergone earlier to there improve was the only predication techniques 72 . we came to know that 73% of the users were males and the remaining 27% were females.

fundamental analysis being used but now technical analysis has come into existence 2. Once the people who are involved in it. They play it like gambling and they think that its same it is difficult to change their mindset. 3. It’s difficult to make people aware about the market

knowledge it is very vast. 4. Last of technical thing are involved in it difficult for everyone to go through it.

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CONCLUSION AND SUGGESTIONS
Today various people are investing in stock without having proper knowledge about it , they only listen to their broker sayings and in the end face huge losses , stock predication is very difficult or say impossible no one can predict the future as has been brilliant shown in the Hollywood movie paycheck If people know the truth and have knowledge about the market than can take some risks. Stock cant be predicted no one is sure what going to happen the next movement it’s a much volatile market. If someone is sure about the up trepanned than why the stop loss being set if because there is no surety Therefore, people should have knowledge about the market than they should enter it as it would lead in minimizing the losses and playing a more safe game of investing money. More reliable techniques should come to facilitate people and it should be simple also.

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QUESTIONNAIRE 1. What is a commodity?
ANS: The term 'commodity' includes all kinds of goods. FCRA defines 'goods' as 'every kind of movable property other than actionable claims, money and securities'

2. What are commodity futures?
ANS: Commodity Futures are contracts to buy specific quantity of a particular commodity at a future date. It is similar to the Index futures and Stock futures but the underlying happens to be commodities instead of Stocks and Indices

3. Why Trade in Commodity Exchanges?
75

Individuals. LME etc 4. Ahemdabad (NMCE 76 . consumption and carry-over quantity of stocks Economic policies and conditions Interest Rates .g. National Multi Commodity Exchange. How do commodity prices move? Natural Factors: Soil and climatic conditions. minimum support prices Annual production. Hedgers 2. Prices are pegged to international markets of NYMEX.g. EXIM Policies like tariff rates. which comes under the purview of the Ministry of Food. CBOT.ANS: 1. National Commodity Mumbai (NCDEX and Derivatives Exchange of India. Mumbai (MCX B. Who regulates the commodity exchanges? Just as SEBI regulates the stock exchanges. at a guaranteed price Speculator: Speculators are participants who wish to bet on future movements in the price of an asset. What are the major commodity exchanges A. Agriculture and Public Distribution 7. Who are the players in the Commodity Market ANS: Hedgers: Hedgers enter into commodity contracts to be assured access to a commodity.e. Higher Leverage: Get high exposures for the margin provided 4. Multi-Commodity Exchange of India Ltd. C. natural calamities etc Government Policies . hike in federal rates bring down the dollar. No counter party risks 3. or the ability to sell it.e. CME. thereby increasing lucrative-ness of investment in precious metals 5. willing to absorb risk Arbitrageur: A type of investor who attempts to profit from price inefficiencies in the market by making simultaneous trades that offset each other and capture risk-free profits 5. commodity exchanges are regulated by the Forwards Market Commission (FMC).

karvay.wikipedia.com www.indiabulls. What are the charges involved in trading on the exchanges Brokerage Service Tax Transaction Charges: Rs.com www.com www.com www. How risky are these markets compared to stock & bond markets? Commodity prices are generally less volatile than the stocks and this has been statistically proven. Therefore it's relatively safer to trade in commodities.com       77 . are settled in cash BIBLIOGRAPHY Websites: www. What are the commodity derivatives market timings? The commodity derivatives timings are: NCDEX & MCX Monday to Friday: 10 am to 11.com www.religare.8.4 per lakh on both NCDEX and MCX On NCDEX it is always on 20th of every month On MCX it differs from commodity to commodity All open contracts. only Saturday: 10 am to 2 pm 9. which are not intended for delivery. Also the regulatory authorities ensure through continuous vigil that the commodity prices are marketdriven and free from manipulations.com  Indiainfoline.sharekhan.google.m.30 pm (Agri-commodities up to 5 p. However all investments are subject to market risk and depend on the individual’s decision 10.

magazines& newspaper  Business times  Research methodology(c.s kothari)  Economic times  Financial management (paresh shah) 78 .Books.

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