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[ 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
PARTIAL FULFILLMENT OF THE PAPER OF THE INTERNSHIP PROJECT (2007-2009)
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.
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
CONTENTS 1. 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. and financial risk Function of stock exchange Service of stock exchange 2. 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. individual investors. 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.
Source of data Limitation of study 5. Questionnaire 5 . Conclusions and suggestions 6.
com/ STOCK MARKET A stock market.000 US$ 1. these are securities listed on a stock exchange as well as those only traded privately. of listings MarketCap Volume Indexes Website Stock Exchange Mumbai. is a private or public market for the trading of company stock and derivatives of company stock at an agreed price.bseindia. The size of the world stock market is estimated at about $51 trillion. 12 times the size of the entire world economy. because it is stated in terms of 6 . 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. or (equity market).INTRODUCTION The Bombay Stock Exchange in India Type Location Owner Key people Currency No. India Bombay Stock Exchange Limited Rajnikant Patel (CEO) INR ~6. It must be noted though that the value of the derivatives market.
In late 13th century Bruges commodity traders gathered inside the house of a man called Van der Beurse. until then. There are now stock markets in virtually every developed and most developing 7 . merchant banking.notional values. unit trusts and other speculative instruments. as well as on the many regional exchanges. The stock market in the United States includes the trading of all securities listed on the NYSE. OTCBB and Pink Sheets. Genoa and Florence also began trading in government securities during the 14th century. and cannot be directly compared to a stock or a fixed income security. Verona. which traditionally refers to an actual value. e. The idea quickly spread around Flanders and neighboring counties and "Beurzen" soon opened in Ghent Antwerp and Amsterdam. This was only possible because these were independent city states not ruled by a duke but a council of influential citizens. The Dutch "pioneered short selling. London Review of Books XXIII. option trading. the Dutch East India Company issued the first shares on the Amsterdam Stock Exchange. In 1602.7. the Deutsche Borse and the Paris Bourse. 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. debt-equity swaps.g. much as we know them" (Murray Sayle. In 1351 the Venetian government outlawed spreading rumors intended to lower the price of government funds. which let shareholders invest in business ventures and get a share of their profits . the Amex. The Dutch later started joint stock companies. 2001). Because these men also traded with debts. institutionalizing what had been. 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. an informal meeting. rather than an actual market price. and in 1309 they became the "Brugse Beurse". Many such relatively illiquid securities are valued as marked to model. In the middle of the 13th century Venetian bankers began to trade in government securities. the NASDAQ. 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. 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. Bankers in Pisa. disproving the belief that these were invented later by Italians. "Japan Goes Dutch".or losses. they could be called the first brokers. European examples of stock exchanges include the London Stock Exchange. April 5.
Although there is a significant amount of human contact in this process. (Buying or selling at market means you will accept any ask price or bid price for the stock. 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. where all trading is done over a computer network.economies. computers play an important role. 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. by a method known as open outcry. The specialist's job is to match buy and sell orders using open outcry. a sale takes place on a first come first served basis if there are multiple bidders or askers at a given price. The purpose of a stock exchange is securities between buyers and marketplace (virtual or real). The NASDAQ is a virtual listed exchange. also referred to as a listed exchange — only stocks listed with the exchange may be traded. If a spread exists. respectively. who can be based anywhere. Once a trade has been made the details are reported on the "tape" and sent back to the brokerage firm.) When the bid and ask prices match. India. The other type of exchange is a virtual kind. The trading information on the listed discovery. TRADING Participants in the stock market range from small individual stock investors to large hedge fund traders. However. The process is to the New York Stock Exchange. composed of a network of computers where trades are made electronically via traders. who executes the order. to facilitate the exchange of sellers. Orders enter by way of exchange members and flow down to a specialist. One or more NASDAQ market of the similar sellers makers 8 . France and Japan. Their orders usually end up with a professional at a stock exchange. with the world's biggest markets being in the United States. buyers and are electronically matched. facilitating price The New York Stock Exchange is a physical exchange. Germany. especially for so-called "program trading". which then notifies the investor who placed the order. who goes to the floor trading post to trade stock. This type of auction is used in stock exchanges and commodity exchanges where traders may enter "verbal" bids and offers simultaneously. Canada. Some exchanges are physical locations where transactions are carried out on a trading floor. thus providing a exchanges provide real-time securities. China (Hong Kong). UK.
security trades away from the exchanges to their internal systems. Thus. Prior to the 1980s. the balance of power in equity markets is shifting.g. worldwide.will always provide a bid and ask price at which they will always purchase or sell 'their' stock. mutual funds. the CATS trading system was introduced. where clients can move big blocks of stock anonymously. and Credit Suisse Group. is an order-driven. markets have become more "institutionalized". investor groups. By bringing more orders in-house. However. such as wealthy businessmen. active trading (especially in large blocks of securities) have moved away from the 'active' exchanges.S. and the order matching process was fully automated. Securities firms. In 1986. corporate governance (at least in the West) has been very much adversely affected by the rise of (largely 'absentee') institutional 'owners' 9 . The rise of the institutional investor has brought with it some improvements in market operations. pension funds. led by UBS AG. From time to time. It was automated in the late 1980s. insurance companies. Over time.. according to data compiled by Boston-based Aite Group LLC. Stockbrokers met on the trading floor or the Palais Brongniart. Goldman Sachs Group Inc. it consisted of an open outcry exchange. electronic stock exchange. 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. and banks). with long family histories (and emotional ties) to particular corporations. but only after the large institutions had managed to break the brokers' solid front on fees they then went to 'negotiated' fees. Now that computers have eliminated the need for trading floors like the Big Board's. the government was responsible for "fixed" (and exorbitant) fees being markedly reduced for the 'small' investor. 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. buyers and sellers were individual investors. The Paris Bourse. hedge funds. already steer 12 percent of U. a brokerage-industry consultant . now part of Euronext. buyers and sellers are largely institutions (e. but only for large institutions).
and guarantee payment to the seller of a security.IMPORTANCE OF STOCK MARKET The stock market is one of the most important sources for companies to raise money. compared to other less liquid investments such as real estate. The liquidity that an exchange provides affords investors the ability to quickly and easily sell securities. in general. central banks tend to keep an eye on the control and behavior of the stock market and. In this way the financial system contributes to increased prosperity. Therefore. on the smooth operation of financial system functions. and can influence or be an indicator of social mood. Financial stability is the raison d'être of central banks. tend to be associated with increased business investment and vice versa. This is an attractive feature of investing in stocks. History has shown that the price of shares and other assets is an important part of the dynamics of economic activity. 10 . This allows businesses to be publicly traded. or raise additional capital for expansion by selling shares of ownership of the company in a public market. Share prices also affect the wealth of households and their consumption. Exchanges also act as the clearinghouse for each transaction. 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. meaning that they collect and deliver the shares. This eliminates the risk to an individual buyer or seller that the counterparty could default on the transaction. for instance. Rising share prices.
some research has shown that changes in estimated risk. such as profits or dividends. a study of the fifty largest one-day share price movements in the United States in the post-war period confirms this. It also seems to be the case more generally that many price movements are not occasioned by new information. A 11 . For instance. many studies have shown a marked tendency for the stock market to trend over time periods of weeks or longer. (Something like seeing familiar shapes in clouds or ink blots.THE BEHAVIOR OF THE STOCK MARKET From experience we know that investors may temporarily pull financial prices away from their long term trend level. and the use of certain strategies. Overreactions may occur—so that excessive optimism (euphoria) may drive prices unduly high or excessive pessimism may drive prices unduly low. while the EMH predicts that all price movement (in the absence of change in fundamental information) is random (i. (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. 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. and often will perceive a pattern in what is.6 percent—the largest-ever one-day fall in the United States. non-trending). having priced in all public knowledge.) 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.. Various explanations for large price movements have been promulgated. such as stop-loss limits and Value at Risk limits. ought to affect share prices. New theoretical and empirical arguments have been put forward against the notion that financial markets are efficient. This event demonstrated that share prices can fall dramatically even though. theoretically could cause financial markets to overreact. According to the efficient market hypothesis (EMH). to this day.) But the efficient-market hypothesis is sorely tested by such events as the stock market crash in 1987. in fact. when the Dow Jones index plummeted 22. only changes in fundamental factors. Moreover. Other research has shown that psychological factors may result in exaggerated stock price movements.e. just noise.
even if that news has no real effect on the technical value of securities itself. The media amplified the general euphoria. the probabilities are known and largely independent of the investment decisions of the different players. making it the largest stock exchange in South Asia and the tenth largest in the world. reducing his (psychological) risk threshold. On 31 December 2007.2002 crash. self- In one paper the authors draw an analogy with gambling. euphoria and mass panic. popularly called The Bombay Stock Exchange. stocks and other securities can be battered or buoyed by any number of fast market-changing events. Mumbai. predictions of a DOW average below 5000 were quite common. the equity market capitalization of the companies listed on the BSE was US$ 1. Around 6. The stock market. is quite unforgiving of amateurs. 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.000 listed companies as of August 2007. rumors.79 trillion. the game becomes more like poker (herding behavior takes over). In normal times the market behaves like a game of roulette. The players now must give heavy weight to the psychology of other investors and how they are likely to react psychologically. less than 1 per cent of the analyst's recommendations had been to sell (and even during the 2000 .2002 crash. It is located at Dalal Street. The BSE SENSEX (SENSitive 12 . It is also the biggest stock exchange in the world in terms of listed companies with 6. so that by summer of 2002. Over the short-term. the stock market can be swayed tremendously in either direction by press releases. however. The Bombay Stock Exchange was established in 1875. making the stock market difficult to predict. IRRATIONAL BEHAVIOR Sometimes the market tends to react irrationally to economic news. and it has a significant trading volume. (And later amplified the gloom which descended during the 2000 . Mumbai. The Stock Exchange. India. the average did not rise above 5%). Inexperienced investors rarely get the assistance and support they need. as any other business. 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. or BSE) is the oldest stock exchange in Asia.000 Indian companies list on the stock exchange. In times of market stress.. Therefore.period of good returns also boosts the investor's confidence. In the period running up to the recent Nasdaq crash.
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 . 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. Apart from BSE SENSEX. which is the most popular stock index in India. with the base April 1979 = 100. also called the "BSE 30".indEX). Though many other exchanges exist. These companies account for around one-fifth of the market capitalization of the BSE. The set of companies which make up the index has been changed only a few times in the last twenty years.
This new system was unveiled on December 15. July 25. Following is the timeline on the rise and rise of the Sensex through Indian stock market history. 1000.BSE BROADCAST The BSE Broadcast is a large ticker on the wall of the BSE. said that the ticker would provide information and analysis of the financial world. when Dr Prannoy Roy. Mr Damodaran. 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. the Managing Director of New Delhi Television (NDTV) Ltd.001 in the wake of a good monsoon season and excellent corporate results. the Sensex touched the magical four-digit figure for the first time and closed at 1. struck the BSE's opening bell. 14 . 1990 On July 25. 2006. the Chairman of the Securities and Exchange Board of India (SEBI). 1990. which continuously displays the latest stock quotes from the market.
4000. 3000. 1992. the Bombay benchmark 30-share index -. 2005. October 8. 2006 crossed the magical figure of 11.006.091 on the expectations of a liberal export-import policy. 1992 On January 15. Reliance Energy.020 followed by the liberal economic policy initiatives undertaken by the then finance minister and current Prime Minister Dr Manmohan Singh.000 points. March 30.000-mark and closed at 4. 1999 On October 8. Dr Manmohan Singh. However. the Sensex surged past the 3000 mark in the wake of the market-friendly Budget announced by the then Finance Minister. 1992. 2006 touched 10.000 and touched a life-time peak of 11.003 points during mid-session. the Sensex crossed the 4. March 21.000-mark as the BJP-led coalition won the majority in the 13th Lok Sabha election. 5000.the Sensex -level following brisk buying by foreign and early trading. 2000 On February 11. 1992 On February 29. 2005 On September 8. 6000. 2006 that the Sensex first closed at over 11. Reliance Capital. This helped the Sensex crossed 7. 2000. 9000. and IPCL made huge gains. January 15. 2005 On June 20.32 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. June 20.000 points for the first time. the Sensex crossed the 5. the news of the settlement between the Ambani brothers boosted investor sentiments and the scrips of RIL. It was then that the Harshad Mehta scam hit the markets and Sensex witnessed unabated selling. February 6. The Sensex finally closed above the 10K-mark on February 7. 1999. September Stock Exchange's crossed the 8000 domestic funds in 8. February 11. 15 . 1992 On March 30. 2005 The Sensex on November 28. February 29.000-mark and hit and all time high of 6.000. the infotech boom helped the Sensex to cross the 6. November 28. 11. 1992. 7000.000-mark and closed at 2. 2005. 2006 The Sensex on March 21. it was on March 27. 10. the Sensex crossed the 2. 8000. 2005 crossed the magical figure of 9000 to touch 9000.001 points during mid-session at the Bombay Stock Exchange for the first time. 2006.000.2000. 2006 The Sensex on February 6.
2006 crossed the 12. Within minutes after trading began.000 to 15.000-mark and closed at a peak of 12. The index zoomed to a new alltime intra-day high of 18.040 points for the first time.921. October 30.000.323.327. July 6.000. 2007 The Sensex scaled yet another milestone during early morning trade on September 19. saw the index slip into red to 16.45 points or 0. 2007 The Sensex scaled yet another height during early morning trade on September 26. 17.26 points.000. It finally gained 789 points to close at an all-time high of 18.000 mark. 18. the Sensex crossed 16. the Sensex crossed the 17.000.887 .9%. It took 36 days for the Sensex to move from 13. 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. 2007 The Sensex crossed the 19. Within minutes after trading began.500 to 13. The 30-share Bombay Stock Exchange's sensitive index took 53 days to reach 16.000. September 19.000 to touch 15. 2006 The Sensex on April 20. December 5. The Sensex ended with a gain of 22 points at 16. September 26.000 points from the 17.000 and 123 days to move from 12.732. The market set several new records including the biggest single day gain of 789 points at close. 2006 The Sensex on December 5. up 117. 13. It took seven months for the Sensex to move from 14. 16.12. Some profit taking towards the end.005 points in afternoon trade. 2007. The NSE Nifty gained 186 points to close at 4. 2006 crossed the 14.000 and closed at 13. 14.024. capital goods and refinery sectors. It took 135 days for the Sensex to move from 12. The index gained the 16 . up 113 points.000 mark. 2006 crossed the magical figure of 13.down 187 points from the day's high.000mark on October 09. April 20.000 to 13. 2007 The Sensex on July 6. 19. 15. 2006 The Sensex on October 30.000 points. 2007. 2007 The BSE Sensex crossed the 18.000 to the 14.000. October 15.000-mark to touch 14.000-mark .000-mark backed by revival of funds-based buying in blue chip stocks in metal. October 09.000.000. 2007.000 from 15. Nifty also touched a new high at 4659.000. It took just 8 days to cross 18.000. rising by 450 points from the previous close.000. 2007 crossed the magical figure of 15. The Sensex finally ended with a gain of 654 points at 16.280.028 points.
67. then pulled back and ended up at 14.059. and finally ended with a smart gain of 640 points at 19. 2008 The sensex crossed the 21.000 mark on the back of aggressive buying by funds ahead of the US Federal Reserve meeting. This was backed by high market confidence of increased FII investment and strong corporate results for the third quarter. 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. This is the lowest that it has ever been in the past year. 2008 The sensex closed below 15.024.220. a gain of 734.000 points after the index crossed the 19.200 mark.200. the market had hit an all time high of 21206.822. closely followed by ICICI Bank and ITC Ltd 17 .731 during the early trades. 15.220 amidst a negative sentiment generated on the Reserve Bank of India hiking CRR by 50 bps.905.977. The index took only 10 trading days to gain 1. 12.2008 14. 2008 The sensex hit an intra day low of 12.last 1.000-mark on October 15.000 points in just four trading days.60 points.096. The index touched a fresh all-time intra-day high of 19. 20. January 8. ICICI Bank. showing a hefty gain of 203.90. This is a bad time for the Indian markets. October 29.822. HDFC Bank and SBI among others. June 25. 2008. 2008 The sensex touched an intra day low of 13.50 points before ending at 5. July 2. However.922. it later fell back due to profit booking. 2007 The Sensex crossed the 20. although Reliance and Infosys continue to lead the way with mostly positive results. Six months ago.000. Bloomberg lists them as the top two gainers for the Sensex. on January 10th. The major drivers of today's rally were index Heavyweights Larsen and Toubro. The NSE Nifty rose to a record high 5. 21.000 mark in intra-day trading after 49 trading sessions. Reliance Industries.70. Indian market suffer with major downfall from January 21.50 points.87 points before ending at its fresh closing high of 19.70 on July 2nd. June 13.000. FII outflow continued in this week.670.The Nifty gained 242 points to close at 5. 2008.
an index of fifty major stocks weighted by market capitalisation. and between them are responsible for the vast majority of share transactions. is a Mumbai-based stock exchange. Ravi Narain Managing Director INR 1587 US$ 1. 72°51′35″E National Stock Exchange of India Limited Mr. It is the largest stock exchange in India in terms of daily turnover and number of trades.46 trillion (2006) S&P CNX Nifty CNX Nifty Junior S&P CNX 500 http://www.. NSE and the Bombay Stock Exchange are the two most significant stock exchanges in India.nse-india.com/ The National Stock Exchange of India Limited (NSE). 18 . for both equities and derivative trading. The NSE's key index is the S&P CNX Nifty. Though a number of other exchanges exist. known as the Nifty.NATIONAL STOCK EXCHANGE LIMITED Type Location Coordinates Owner Key people Currency No. of listings MarketCap Indexes Website Stock Exchange Mumbai. India 19°3′37″N.
anonymous. banks. and its pioneering efforts include: • • Being the first national. NSCCL was a landmark in providing innovation on all spot equity market (and later.NSE is mutually-owned by a set of leading financial institutions. 2799 in total. As of 2006. cover more than 1500 cities across India . insurance companies and other financial intermediaries in India but its ownership and management operate as separate entities.6%. INNOVATIONS NSE has remained in the forefront of modernization of India's capital and financial markets. the NSE VSAT terminals. existent market and new market structures have followed the "NSE" model. 19 . and was incorporated in November 1992 as a tax-paying company. 1956. making it the second largest stock exchange in South Asia. the equity market capitalization of the companies listed on the NSE was US$ 1. while operations in the Derivatives segment commenced in June 2000. The Capital Market (Equities) segment of the NSE commenced operations in November 1994. In October 2007. NSE is the third largest Stock Exchange in the world in terms of the number of trades in equities. NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. it was recognized as a stock exchange under the Securities Contracts (Regulation) Act. electronic limit order book (LOB) exchange to trade securities in India. [[Image:National Stock exchange Kolkata. 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.46 trillion. derivatives market) trades in India. Since the success of the NSE. Setting up the first clearing corporation "National Securities Clearing Corporation Ltd. In April 1993." in India.It is the second fastest growing stock exchange in the world with a recorded growth of 16.
particularly on an equity index. 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. NSE pioneered commencement of Internet Trading in February 2000. Being the first exchange that. in India. 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 . in 1996. Setting up of S&P CNX Nifty. proposed exchange traded derivatives. 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. NSE has also launched the NSE-CNBC-TV18 media centre in association with CNBC-TV18 MARKETS Currently.• • • • • • Co-promoting and setting up of National Securities Depository Limited. which led to the wide popularization of the NSE in the broker community. After four years of policy and regulatory debate and formulation. first depository in India.
options and swaps are the most common types of derivatives. interest rates and market indexes. covering different sectors of financial and capital markets. the investor could purchase currency futures to lock in a specified exchange rate for the future stock sale and currency conversion back into euros. just about anything can be used as an underlying asset. but can also be used for speculative purposes. commodities. A person keeps a close watch upon the prices discovered in trading and when the comfortable price is reflected according to his wants. Most derivatives are characterized by high leverage. In this way he gets an assured fixed price of his produce. currencies. DERIVATIVE In finance. Derivatives are generally used to hedge risk. Its value is determined by fluctuations in the underlying asset. a security whose price is dependent upon or derived from one or more is underlying assets. TYPES OF TRADERS IN A DERIVATIVES MARKET Hedgers. Futures contracts. speculators and arbitrators are the types of traders in derivatives market. such as the amount of rain or the number of sunny days in a particular region. HEDGERS: Hedgers are those who protect themselves from the risk associated with the price of an asset by using derivatives. For example.CERTIFICATIONS NSE also conducts online examination and awards certification. Currently. bonds. certifications are available in 19 modules. The most common underlying assets include stocks. 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. forward contracts. Branches of the NSE are located throughout India. Because derivatives are just contracts. The derivative itself is merely a contract between two or more parties. 21 . There are even derivatives based on weather data. To hedge this risk. he sells futures contracts. under its programmes of NSE's Certification in Financial Markets (NCFM).
to change more quickly than real estate or stock prices. he can make more money in the futures market faster because prices tend. or individuals. Speculative participation in futures trading has increased with the availability of alternative methods of participation. They handle trades for their personal clients or brokerage firms. yet he can ride on the full value of the contract as it moves up and down. They actually bet on the future movement in the price of an asset. but a performance bond. They will just buy from one end and sell it to the other in anticipation of future price movements. the futures position will profit if the price of the produce rise enough to offset cash loss on the produce. Buying a futures contract in anticipation of price increases is known as ‘going long’. hedgers use futures for protection against adverse future price movements in the underlying cash commodity. Since cash and futures prices do tend to move in tandem. The money he puts up is not a down payment on the underlying contract. 22 • . Take an example: A Hedger pay more to the farmer or dealer of a produce if its prices go up. Hedgers are often businesses.In general. Selling a futures contract in anticipation of a price decrease is known as ‘going short’. The actual value of the contract is only exchanged on those rare occasions when delivery takes place. on average. The trader puts up a small fraction of the value of the underlying contract as margin. These participants include independent floor traders and investors. Futures are highly leveraged investments. SPECULATORS: Speculators are some what like a middle man. who at one point or another deal in the underlying cash commodity. They are the second major group of futures players. he hedge the risk exposure by buying enough future contracts of the produce to cover the amount of produce he expects to buy. For protection against higher prices of the produce. Speculators have certain advantages over other investments they are as follows: • If the trader’s judgment is good. They are never interested in actual owing the commodity.
The system can affect a rise in the cost of funds which adversely affects consumption. money. practices. managers. The financial system helps to determine both the cost and the volume of credit. transactions and claims and liabilities. employment and growth of the economy .similarly. analysts. A financial system is a composition of various institutions. The phenomenon of imbalance in the distribution of capital of funds exists in every economy system. There are areas or people with surplus funds as also those with a deficit. A financial system functions as an intermediary and a facilitates the flow of funds from the areas of surplus to those of deficit. he will take offsetting positions in both the markets to lock in a profit. productions. Thus we find that a financial system has an impact on the basic existence of an economy and its citizens. If he finds future prices of a commodity edging out with the cash price. a person who has been officially chosen to make a decision between two people or groups who do not agree is known as Arbitrator. regulations and laws. `The four main functions performed by a financial system are given below: The saving function Liquidity function Payment function Risk function 23 . 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. In commodity market Arbitrators are the person who takes the advantage of a discrepancy between prices in two different markets. lower ring the cost positive directions. markets.ARBITRATORS: According to dictionary definition.
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.the cost and time for transaction are drastically reduced . bonds.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 credit card system 24 . The funds in the hands of the producers result in production of better goods and services. money is the form of deposits offers the least risk. which promise future income flows. That is why one always prefers to store the funds in financial instruments like stocks. Financial claims are issued in the money and capital markets. The financial markets provide the investor the opportunity to liquidate the investments. However the growth of the investment and living standard begins to fall 2: LIQUIDITY FUNCTIONS: Of all financial instruments.while the cheque system of payment is widely practiced . but its value is almost eroded by inflations. The cheque system and credit card system are the easiest methods of payment in the economy .in India . 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. debentures. etc.
and properly insurance policies . These guarantees are accomplished through the sale of life and health insurance. organizations that facilitate the trade in financial securities. Financial markets could mean: 1. i.e.the financial markets provide immense opportunities for the investor to hedge himself against of reduce the possible risk involved in various investments. Definition. i. health and income risks. the coming together of buyers and sellers to trade financial securities. 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. bonds and warrants.has entered only recently into urban India and is widely used in these areas for payments of consumption expenditure. In academia. Financial markets can be domestic or they can be international. and enable the subsequent trading thereof. Stock exchanges facilitate the trade in stocks. which provide financing through the issuance of shares or common stock. stocks and shares are traded between buyers and sellers in a number of ways including: the use of stock exchanges. 2. 25 . TYPES OF FINANCIAL MARKETS The financial markets can be divided into different subtypes: Capital markets which consist of: Stock markets. 4: RISK FUNCTION: The financial markets provide protection against life.e. students of finance will use both meanings but students of economics will only use the second meaning. directly between buyers and sellers etc.
A company can raise money by selling shares to investors and its existing shares can be bought or sold. which provide short term debt financing and investment.e. The following table illustrates where financial markets fit in the relationship between lenders and borrowers: 26 . i. Secondary markets allow investors to sell securities that they hold or buy existing securities. markets. commodities. Foreign exchange foreign exchange. what is their purpose? Without financial markets. which facilitate the trading of Money markets. which provide financing through the issuance of Bonds. Banks take deposits from those who have money to save. Insurance markets. which management of financial risk. They can then lend money from this pool of deposited money to those who seek to borrow. which facilitate the redistribution of various risks. which facilitate the trading of The capital markets consist of primary markets and secondary markets. which provide standardized forward contracts for trading products at some future date. let us look at what they are used for. see also forward market. Commodity markets. Derivatives markets. RAISING CAPITAL To understand financial markets. Intermediaries such as banks help in this process. Newly formed (issued) securities are bought or sold in primary markets. borrowers would have difficulty finding lenders themselves. Banks popularly lend money in the form of loans and mortgages. 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. and where existing borrowing or lending commitments can be sold on to other parties. provide instruments for the Futures markets.Bond markets. A good example of a financial market is a stock exchange.
) Alternatively. A person lends money when he or she: • • • • • puts money in a savings account at a bank. Companies tend to be borrowers of capital.) BORROWERS Individuals borrow money via bankers' loans for short term needs or longer term mortgages to help finance a house purchase. they may seek to make more money on their cash by lending it (e. invests in government bonds. 27 . pays premiums to an insurance company.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. investing in bonds and stocks. There are a few companies that have very strong cash flows. These companies tend to be lenders rather than borrowers. 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. When companies have surplus cash that is not needed for a short period of time. but almost everybody does lend money in many ways. Such companies may decide to return cash to lenders (e. Companies borrow money to aid short term or long term cash flows.g.g. via a share buyback. or invests in company shares. contributes to a pension plan.
CURRENCY MARKETS Main article: Foreign exchange market Seemingly. or derivatives for short. To make up this difference. Governments also borrow on behalf of nationalised industries. Public Corporations typically include nationalised industries. interest rates and dividends go up and down. Derivative products are financial products which are used to control risk or paradoxically exploit risk. Many borrowers have difficulty raising money locally. These may include the postal services. Governments borrow by issuing bonds. In the UK. stock prices. One strategy used by governments to reduce the value of the debt is to influence inflation. local authorities and other public sector bodies. currency rates. this would cover an authority like Hampshire County Council. the most obvious buyers and sellers of foreign exchange are importers/exporters.Governments often find their spending requirements exceed their tax revenues. municipalities. DERIVATIVE PRODUCTS During the 1980s and 1990s. creating risk. railway companies and utility companies. Indeed the debt seemingly expands rather than being paid off. They need to borrow internationally with the aid of Foreign exchange markets. bond prices. Government debt seems to be permanent. It is also called financial economics. the total borrowing requirement is often referred to as the public sector borrowing requirement (PSBR). whereby importers/exporters created the initial demand for currency markets. importers and exporters 28 . Municipalities and local authorities may borrow in their own name as well as receiving funding from national governments. In the financial markets. In the UK. In the UK. they need to borrow. While this may have been true in the distant past. a major growth sector in financial markets is the trade in so called derivative products. the government also borrows from individuals by offering bank accounts and Premium Bonds.
at least in the short term. 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. The capital market includes the stock market and the bond market. It was discovered by Benoît Mandelbrot that changes in prices do not follow a Gaussian distribution. One of the tenets of "technical analysis" is that market trends give an indication of the future. The capital market is the market for securities. Financial regulators. one of the founders of Dow Jones & Company and The Wall Street Journal. Securities and Exchange 29 . enunciated a set of ideas on the subject which are now called Dow Theory. Charles Dow. to meet the long term needs of business enterprises . Large changes CAPITAL MARKET Capital market is an organized market for long term funds required . depends on the length of the time unit to a power a bit more than 1/2. 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. such as the U. The picture of foreign currency transactions today shows: • • • • • Banks and Institutions Speculators Government spending (for example. where companies and governments can raise longterm funds. The scale of change. according to BIS.now represent only 1/32 of foreign exchange dealing. or volatiliy. but are rather modeled better by Lévy stable distributions. The scale of changes in price over some unit of time is called the volatility. The claims of the technical analysts are disputed by many academics. which states that the next change is not correlated to the last change.S.
FEATURES It is an organized market for buying. financial and government securities. It is privately owned by individuals. In brief. It operates as per well defined rules and regulation. selling and dealing in securities. oversee the capital markets in their designated countries to ensure that investors are protected against fraud. financial and government market for industrial. 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 .Commission. The capital markets consist of the primary market. STOCK EXCHANGE Stock exchange is an organized market for industrial. 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. where new issues are distributed to investors. and the secondary market. It is a recognized association and is controlled by the state under a special act. where existing securities are traded. It facilitates marketing in securities and also controls the trading activities. Stock exchange also helps the public sector undertaking and the government in raising long term loans.
31 . Listed securities get quicker and better response are from investors.SERVICE TO COMPANIES Companies raising their capital through stock exchange will find better response to their security issues. in fact. They enable the companies to collect adequate capital for formation. This enhances the financial status and increase the bargaining power of the company in the collective ventures. is a gift to the investors. regarding the Stock exchange maintains liquidity of securities by enabling the holders to sell them whenever they need liquid fund. Market value of the securities is slightly more in relation to earning and property values. • Stock exchange provides a large marker for the listed securities. • Stock exchange increases the credit standing and goodwill of the companies whose securities are listed. Stock exchange provides capital for industrial growth. • • • 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. who gain confidence by providing continuous marketing facilities. modernization or rationalization.merger. • • Stock exchange guides the investors choice of securities to be bought. expansion.therefore purchasing of listed securities because less risky. Stock exchange authorities properly evaluated the listed secutities. Stock exchange provides information about the value of securities to the investors through daily quotations of listed securities.etc • • SERVICES TO INVESTORS Stock exchange.
hedge funds. 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. either directly or through mutual funds. such securities are called listed securities. 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. The trend towards forms of saving with a higher risk has been accentuated by new rules for most funds and insurance. permitting a higher proportion of shares to bonds..it selects certain securities for transaction. such as the European Union. In all developed economic systems. pension funds. Similar tendencies are to be found in other industrialized countries. The general public's heightened interest in investing in the stock market.A stock exchange does not deal in the securities of all the companies . has been an important component of this process. mutual funds. In the 1970s. 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. Statistics show that in recent decades shares have made up an increasingly large proportion of households' financial assets in many countries. e. One feature of this development is disintermediation. etc. in Sweden. 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 . compared to less than 20 per cent in the 2000s. the United States. insurance investment of premiums.g. 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.
in marked contrast to the stability of (government insured) bank deposits or bonds. only folly. Stock prices skyrocket with little reason. the noise level in the stock market rises. At the same time. and people who have turned to investing for their children's education and their own retirement become frightened. analysts. AND FINANCIAL RISK Riskier long-term saving requires that an individual possess the ability to manage the associated increased risks. The following deals with some of the risks of the financial sector in general and the stock market in particular.THE STOCK MARKET. financial writers. investors find it increasingly difficult to profit. are exchanging questionable and often misleading tips. INDIVIDUAL INVESTORS. This is certainly more important now that so many newcomers have entered the stock market. but also the economy on a large scale. and market strategists are all overtalking each other to get investors' attention. With each passing year. Yet. Sometimes there appears to be no rhyme or reason to the market. individual investors. then plummet just as quickly.e. despite all this available information.. i. or have acquired other 'risky' investments (such as 'investment' property. 33 . real estate and collectables). This is something that could affect not only the individual investor or household. immersed in chat rooms and message boards. Television commentators. Stock prices fluctuate widely.
Over the years he has built himself a multi-billion-dollar fortune. Buffett began his career with $100. 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. and $105.000 from seven limited partners consisting of Buffett's family and friends.This is a quote from the preface to a published biography about the long-term value-oriented stock investor Warren Buffett.
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 .
com was launched in 2000 . Kotak securities have 813 outlets servicing more than 315000 customers and a coverage of 277 cities. 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.sharekhan online trading and investment site www. 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. The portfolio management service provides top class service catering to the high end of the market. Sharekhan. with the backing of an expert. 36 .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.service limited .NSE derivatives commodities depository services online trading and investment advice .sharekhan.
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. as part of India largest consumer study cover 7000 respondents 21 product and service across 21 major cities. a flagship broking firm in the share market. Mutual funds. Sharekhan won the award by vote of customer around the country. equity driving Tactical measures such as promotional /pricing schemes ABOUT THE COMPANY Share Khan Limited. The reason behind the preferences for brands were unveiled by examines the following: • • • Tangible features of product /service Softer. Share khan give to more information how to invest in the share market. intangible preference features like imagery. this is one of the branches in the Pune. is structured into strategic businesses —Equities. Established in 1958. The head office of Share Khan is in the Mumbai.Sharekhan Bag round network includes over 250 centres across 123 cities in India and having around 120000 customers and equal number of demat customers. Share Khan commissioned its shares and equities at Satara Road. Pune in 1962 and has today grown to become the country’s largest integrated share transfer and ranks 37 . Commodities and Mutual funds are in this firm. This is only Share and Equity broking firm in India. which types more earn money in the through the share market. Share. This is not only Share but bulk of the commodities.
g. BSE and NSE. With a strategic intent to achieve vertical integration in the share business. Equity and debt financing are usually used for longer-term investment projects such as investments in a new factory or a new foreign market. Share Khan acquired two captive markets in Nifty. 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. MEANS OF FINANCING Financing a company through the sale of stock in a company is known as equity financing. subscriptions and insurance MARKET SHARE ANALYSIS 38 . usually 30 days.among the top quartile of low broking intra day and delivery charges in the world. e. Customer provided financing exists when a customer pays for services before they are delivered. unsecured credit terms. Unofficial financing known as trade financing usually provides the major part of a company's working capital (day-to-day operational needs). Alternatively.
Compared to your investments in fixed deposits in banks it makes more profits. There are basically two ways in which you can invest in shares: Purchase shares from The primary market (I. Stock exchanges 39 . 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? .OTHER BENEFITS OF INVESTING IN SHARES? Because they can make big money on it.e. but the bad news is that you are also expected to bear the losses. if any. i.e.
5) Listed history 40 . 2) Liquidity. Some of the criteria they follow include: 1) Market capitalization. 4) Industry representation. 3) Continuity.They are selected by the Index committee.
428 41 .) 300/800/3000/4100/- TATA INFOSYS IBM TOTAL MARKET CAP Face value=Rs.10/Base value=100/Index present value= (100*4100)/2800= 146.) Price on 18/02/06 200/600/2000/2800/30/40/150/Market cap (Rs.COMPUTATION OF STOCK INDEX: A stock market may either be a price index or a wealth index. In India most of the indices are using wealth index for computation of stock market. 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. Company No.
000 customers India Infoline Limited is listed on both the leading stock exchanges in India. It has recently launched its Investment banking and Institutional Broking business.5paisa. It is registered with NSDL as well as CDSL as a depository participant. Portfolio Management Services. It has more than 800. Mumbai (BSE) and the National Stock Exchange (NSE) and is also a member of both the exchanges. 42 . India Infoline Limited and its wholly-owned subsidiaries. Equities and derivatives trading. the Stock Exchange. GoI bonds and other small savings instruments to loan products and Investment banking. straddle the entire financial services space with offerings ranging from Equity research. Fixed deposits. Life Insurance.com/and http://www. comprising the holding company. Wealth Advisory Services and Portfolio Management Services. It offers broking services in the Cash and Derivatives segments of the NSE as well as the Cash segment of the BSE. viz. It is engaged in the businesses of Equities broking.The India Infoline group. India Infoline also owns and manages the websites http://www. providing a one-stop solution for clients trading in the equities market.indiainfoline. Mutual Funds. Commodities trading.com/ The company has a network of 758 business locations (branches and sub-brokers) spread across 346 cities and towns.
through a network of experienced dealers across the country. whether you are present or not! EQUITY Being a member of the National Stock Exchange (NSE). Integrated and innovative use of Technology enabling clients to trade offline. 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. Bonanza confidently steers you through a challenging Financial and Trade Market every moment.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. 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.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 . and through our comprehensive website. 43 . Bombay Stock Exchange (BSE) and dealer with Over the Counter Exchange of India (OTCEI) we handle your trading needs.
00. Karvy Global offers niche off shoring services to clients in the US. Registered with AMFI as a corporate Agent. 44 . has quickly established itself as a broker who adds value. Over 9. Karvy Insurance Brokers is registered as a Broker with IRDA and ranks among the top 5 insurance agent in the country.000 highly qualified people staff Karvy. in the realty sector. Karvy Realty Services. which started in 2006. it ranks among the top 5 Depositary Participant in India. With over 6. 5. Karvy Computershare Limited is India’s largest Registrar and Transfer Agent with a client base of nearly 500 blue chip corporates.000 crores under management.US The Karvy group was formed in 1983 at Hyderabad. Member of NCDEX and MCX ranks among the top 3 commodity brokers in the country. Karvy Stock Brokers Limited. Karvy has 575 offices over 375 locations across India and overseas at Dubai and New York. member of National Stock Exchange of India and the Bombay Stock Exchange. India. Karvy Comtrade. Karvy is also among the top Mutual Fund mobilizer with over Rs. registered with NSDL and CDSL. managing over 2 crore accounts.000 active accounts. ranks among the top 5 stock brokers in India. Karvy ranks among the top player in almost all the fields it operates.
Seminars. 45 . Local. large numbers of informed participants enter the trading process resulting in increased volumes and market efficiency. OUR MISSION To provide research driven.". 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. 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. Mumbai (MCX National Commodity and Derivative Exchange. Multi Commodity Exchange of India Ltd. national and international agri-information is disseminated through the company's large branch network. free in house literature and interactive site sessions raise awareness levels on the futures market. We have membership with two of the major Commodity exchanges of the country.ABOUT EMKAY Emkay offers futures trading through "Emkay Corporate Services (P) Ltd. Consequently.
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. 1.OUR VALUES To be fair. 3.. A partial list is provided below. 6. Director of Emkay was a member of the first Governing council on derivatives segment of BSE. 2. 4. 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. 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. Mr. The first Sensex Futures Contract was executed by Emkay on June 09. 2. 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. Prakash Kacholia.. 2000. 3. Birla Sun life Mutual Fund Deutsche Asset Mgt (India) Pvt.
For last 40 years or so. at a grassroots level. This has led to a mindset in the common man in the country that commodity exchanges are purely speculative in nature.COMMODITY FUTURES TRADING THROUGH: COMMODITY MARKET India has a deep ingrained knowledge in commodity trading (and particularly forward trading in commodities). Fortunately much of the skill sets have migrated to stock exchanges. where the bans were lifted. The hedging and price discovery functions that they perform are largely ignored today by the cross section of the population. have carried on the baton. The ban has meant that two generations have lost touch with the trading skills and the related knowledge levels in the commodity space. such forward (futures) trading was banned in the country for a variety of reasons and it is being revived now. needs to switch to commodity derivatives to top the list of developed nations. Our endeavor is to reach to the producers. 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 an era where risks to investments are on the rise and India being predominantly an agrarian economy. endusers. and even the retail investors. primarily by the speculative segment of the universe of market participants has remained. Also large informal trading. some regional exchanges specializing in specific commodities. In these intervening years. 47 . especially in the interior heartland.
the one for commodity futures plays a valuable role in information pooling and risk sharing. Retail investors should understand the risks and advantages of trading in commodities futures before taking a leap. thus providing an efficient portfolio diversification option. l o w ) speculators. Commodities are easy to understand and are based on the fundamentals of demand and supply.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. 48 . s a v v y i n v e s t o r s . a r b i t r a g e u r s a n d$ c h a n g e . prices in commodities futures have been less volatile compared with equity and bonds. 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 . bonds and real estate. The market mediates between buyers and sellers of commodities thus making the underlying market more liquid. commodities is one of the best options. h i g h . Historically. For those who want to diversify their portfolios beyond shares. Like any other market.
research-based value investing and implementation of cutting-edge technology has enabled us to blossom into an almost 2000 member team. foreign institutional investors. was founded in 1987 as a small sub-broking unit. 2007.496 Business Locations operated by our Business Partners and us.68 bn.3. 2008.7 bn and market capitalization as of March 31. 2008. Focus on customer-first-attitude. the group networth was Rs. For year ended March 2008. The issue gave a return of 21% on the date of listing. asset management and fund based activities have contributed to this growth. ethical and transparent business practices. New businesses like investment banking. had a network spread over 450 cities and towns comprising 1.5 per share) got a overwhelming response and was subscribed 27.648 registered customers. 49 . with just two people running the show. last year. 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). the company showed a strong top line growth of 91% to Rs. The company got listed on BSE and NSE on September 9. the Company placed 9. As of end of financial year 2008. 2008 was Rs. respect for professionalism.7 bn as compared to Rs. In 2006.18 times in turbulent market conditions. The issue which was priced at Rs. financial institutions and corporate clients.Motilal Oswal Securities Ltd. We are headquartered in Mumbai and as of June 30.825 per share (face value Rs. we had 486. As at June 30. mutual funds.48% of its equity with two leading private equity investors based out of the US – New Vernon Private Equity Limited and Bessemer Venture Partners.19 bn.
Rs. Shareholding Pattern at on June 30. OUR BUSINESS STREAMS Our businesses and primary products and services are: WEALTH MANAGEMENT Financial planning for individual. 2008 As of 30th June. Business Partner locations. the internet and mobile channels. the total shareholding of the Promoter and Promoter Group stood at 70. family and business wealth creation and management needs. Crores Total Revenues EBIDTA PAT FY Growth 2007. 2008. We also have strategic tie-ups with State Bank of India and IDBI Bank to offer our online trading platform to its customers.26%.37%. 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. COMMODITY BROKING 50 . The shareholding of institutions stood at 9.08 (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.78% and non-institutions at 12.
the assets under management of our various portfolio schemes stood at Rs. We at Motilal Oswal have helped create wealth for our customers through our Portfolio Management Services. We service these clients through dedicated sales teams across different time zones. banks. the internet and mobile channels PORTFOLIO MANAGEMENT SERVICES Motilal Oswal Portfolio Management Services offer a range of investments solutions through discretionary services. These include the Value PMS.6. our clients also get access to our exclusive Customized Trading Advice on both the trading platforms. Trillion Dollar Opportunity and Focused Portfolio Series I. 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. Bulls Eye PMS. mutual funds. We offer these services through our branches. 2008. financial institutions.Through Motilal Oswal Commodities Broker (P) Ltd our fully owned subsidiary. Business Partner locations. 2008. insurance companies. INSTITUTIONAL EQUITIES We offer equity broking services in the cash and derivative segments to institutional clients in India and overseas.92 bn. 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. and FIIs. As at March 31. INVESTMENT BANKING 51 . These clients include companies. we were empanelled with over 300 institutional clients including 191 FIIs. As of June 30th. Besides access to the best of research in the form of Daily Fundamentals & Technical Reports on highly traded commodities. we provide commodity trading facilities and related products and services on MCX and NCDEX.
share buybacks. PRINCIPAL STRATEGIES GROUP For effective management of treasury operations and to capitalize on market opportunities. our private equity subsidiary. In its final closing.4. restructurings and spin-offs through Motilal Oswal Investment Advisors Private Ltd. MOVCAPL will manage and advise the fund and other private equity funds. The fund is aimed at providing growth capital to small and medium enterprises in India. FOCUS ON RESEARCH 52 .We offer financial advisory services relating to mergers and acquisitions (domestic and cross-border). 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$7 mn. PRIVATE EQUITY In 2006. which may be raised in the future. Motilal Oswal Venture Capital Advisors Private Ltd (MOVCAPL) was appointed as the investment manager and advisor to a private equity fund.8 billion and had 18 mandates in hand as at March 31.875 mn) from investors in India and overseas. 2008. private placements (including qualified institutional placements). rights issues. MOIAPL has closed 23 transactions in 2007-08 worth US$ 1. 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. open offers/delistings and syndication of debt and equity. in December 2007. the fund obtained commitments of US$125 mn (Rs. which was launched with a target of raising US$100 mn. divestitures. The Fund has deployed/ committed $ 58 mn across 8 deals. (MOIAPL) We also offer capital raising and other investment banking services such as the management of public offerings. India Business Excellence Fund.
At present we have 28 equity analysts researching over 27 sectors. STRONG MANAGEMENT TEAM The organization finds its strength in its team of young. Qualified professionals carry out different functions under the able leadership of its promoters. technical and derivatives research perspective. Mr. Our talented pool of people comprises qualified and experienced professionals with an established track record. leadership skills. Almost 10% of revenue is invested on equity research and we hire and train the best resources to become advisors. Motilal Oswal and Mr. 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. 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. Raamdeo Agrawal. is now in its 13th year. strong technical expertise. Motilal Oswal's research reports have received wide coverage in the media (over a 1000 mentions last year).Research is the solid foundation on which Motilal Oswal Securities advice is based. insight into market/customer needs provide us with a competitive strength which will help us implement our business 53 . Raamdeo Agrawal. From a fundamental. We believe that our management's entrepreneurial spirit. authored by Mr. Managing Director.
the group has also started expanding globally and has acquired London’s oldest brokerage & investment firm. REL’s businesses are broadly clubbed across three key verticals. plc.Religare Enterprises Limited (REL). Religare’s wealth management subsidiary is now rechristened as Religare Macquarie Wealth Management Limited. 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. diversify and introduce offerings benchmarked against global best practices. Religare has entered into joint ventures with the global major. is one of the leading integrated financial services groups of India. Harrison & Co. the Retail. As part of its recent initiatives. 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’. following a joint venture with the Australia based financial services major. Religare has also partnered with Vistaar Entertainment to launch India’s first Film Fund. Macquarie Bank. Following this acquisition Religare now proposes to operate out of 10 countries. catering to a diverse and wide base of clients. 54 . Hichens. backed by the core values of diligence and transparency. Institutional and Wealth spectrums.Aegon for its Asset Management and Life Insurance businesses in India. With a view to expand. All employees of the group guided by an experienced and professional management team are committed to providing financial care.
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 .
We ensure you have a superlative trading experience through • • • A highly process driven. This means. Religare also has one of the largest retail networks. with its presence in more than 1300 locations across more than 400 towns & cities. diligent approach Powerful Research & Analytics and One of the “best in class” dealing rooms Further. you can walk into any of these branches and connect to our highly skilled and dedicated relationship managers to get the best services. 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 . Aegon and BCCL for Life insurance business in India EQUITY & DERIVATIVES Trading in Equities with Religare truly empowers you for your investment needs. 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.
which combines an understanding of the goals and objectives of the investor with a fine tuned strategy backed by research. 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. The scheme is suitable for the “Medium Risk Medium Return” investor with a strategy to invest in companies which have consistency in earnings. as these companies have steady performance and reduce liquidity risk in the market. This plan is suitable for the “Low Risk Low Return” investor with a strategy to invest in blue chip companies. It is suitable for the “High Risk High Return” investor with a strategy to invest across sectors and take advantage of various market conditions. • • • • • Stock specific selection procedure based on fundamental research for making sound investment decisions. OUR SCHEMES PANTHER The Panther portfolio aims to achieve higher returns by taking aggressive positions across sectors and market capitalizations. 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. Capital preservation. 57 . Focus on minimizing investment risk by following rigorous valuation disciplines. Selling discipline volatility. growth and financial performance.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.
This scheme is suitable for investors with a high risk appetite. FCCB. stocks in their early stages of an upturn or for those which are in sectors currently ignored by the market. who not only help in adding value but also improve the future valuation of the organization. INVESTMENT BANKING We provide innovative. Exposure to Derivatives is taken within permissible regulatory limits. 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. modeling and advising on financial requirements. Its aim is to have a balanced portfolio comprising selected investments from both Tortoise and Panther. through offerings like Corporate Debt. IPO. MERCHANT BANKING • • • • IPO/FPO/RIGHTS Mergers & Acquisitions Corporate Advisory Services ADR/GDR/FCCB 58 . Private Equity. 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. business diversification leading to a better operating performance. It is our continuous endeavor to provide value enhancement through diverse financial solutions on an ongoing basis. This scheme is a mix of moderate and aggressive investment strategies. The investment strategy would be to invest in scrips which are poised to get a re-rating either because of change in business. GDR/ADR etc. potential fancy for a particular sector in the coming years/months. We specialize in structured financing and providing advisory services related to financial planning. integrated and best-fit solutions to our corporate customers. ECB.
Indiabulls and its group companies have attracted more than USD 800 million of equity capital in Foreign Direct Investment (FDI) since March 2000. 2007). research & advisory services. a respected US based investment firm. Consolidated net worth of the group is around USD 905 million (31st December. Merrill Lynch. profits of the company grew at a CAGR of 184%. Bombay Stock Exchange and Luxembourg Stock Exchange. “Indiabulls Financial Services Ltd is listed on the National Stock Exchange. Goldman Sachs. Indiabulls has demonstrated deep understanding and commitment to Indian Real Estate market by winning competitive bids for landmark properties in Mumbai and Delhi. Indiabulls helps its clients to satisfy their customized financial goals. It is currently evaluating several large-scale projects worth several hundred million dollars. The market capitalization of Indiabulls is around USD 6.• BUY BACK OF SHARE ABOUT INDIABULLS Indiabulls is India’s leading Financial Services and Real Estate company having over 640 branches all over India. depositary services. loan against shares and mortgage & housing finance. Business of the company has grown in leaps and bounds since its inception. derivatives trading. Revenue of the company grew at a CAGR of 159% from FY03 to FY07.300 million (31st December.50. consumer secured & unsecured credit.000 customers with its wide range of financial services and products from securities. Indiabulls serves the financial needs of more than 4. With around 4000 Relationship Managers. Indiabulls through its group companies has entered Indian Real Estate business in 2005.” Indiabulls Financial Services Ltd 59 . Indiabulls became the first company to bring FDI in Indian Real Estate through a JV with Farallon Capital Management LLC. During the same period. Some of the large shareholders of Indiabulls are the largest financial institutions of the world such as Fidelity Funds. 2007). Morgan Stanley and Farallon Capital.
45 44.90 543.293.00 Mkt Cap (Rs Cr) 6337.01%) 3300365 255. Action Compare Compare Compare Compare Compare Compare Compare Compare Compare Compare Company + HDFC (Sensex) + Bajaj Finserv Ltd.50 .55 (8.213.10 326.45 Change Volume Day 's H/L (Rs) 18. INDIABULLS FINANCIAL SERVICES LTD.00 29 Aug..238. 16:01 231.30 128.85 92.05 520.00 .65 130. (A) + India Infoline (A) + Indiabulls Securitie (A) + LIC Housing Fi (A) + Power Finance Co (A) + Reliance Capital (A) Close (Rs) 2.75 68.25 60 .50 HOW HOT IS THIS STOCK? 52wk H/L (Rs) 1028. (A) + Edelweiss Capital Lt (A) + IDFC (A) + IFCI Ltd.65 1..Last traded Time Prev Close 250. VS.00 Price* Volume* MF holdings Sales Net profit margin * Computed on last 15 days' trading figures.278.
699 crore.724 crore.899 crore in June 2008. the industry asset base for July 2008 stood at Rs.36%).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.02%) and ABN AMRO Mutual Fund (14. the industry’s growth in assets has been 11%.71 crore as of July 2007. 9.9%). In the month of July 2008. 86.59% over Rs. As per the numbers released by the Association of Mutual Funds in India.21.623 crore. On a year-on-year basis. JP Morgan Mutual Fund (15.Net inflow in Mutual Fund is Rs. up from Rs.40. 5.18. 5.513. the top three funds witnessed a rise in the AUM including ABN Canara Robeco Mutual Fund (16. 4. an increase of 3. 61 .
while maintaining the highest standards of excellence.ABOUT US AnandRathi is a leading full service securities firm providing the entire gamut of financial services. investment banking. 62 . web or SMS. mutual funds and insurance. Research and investment ideas can be accessed by clients either through their designated dealers. email. with a clear focus on providing long term value addition to clients. Consistent delivery of high quality advice on individual stocks. They are supported by dedicated sales & trading teams in our trading desks across the country. ethics and professionalism. sector trends and investment strategy has established us a competent and reliable research unit across the country. The firm. 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. founded in 1994 by Mr. commodities. brokerage & distribution of equities. AnandRathi. Private Clients. The entire firm activities are divided across distinct client groups: Individuals. The firm's philosophy is entirely client centric. today has a pan India presence as well as an international presence through offices in Dubai and Bangkok. AR provides a breadth of financial and advisory services including wealth management. Corporates and Institutions and was recently ranked by Asia Money 2006 poll amongst South Asia's top 5 wealth managers for the ultrarich. structured products all of which are supported by powerful research teams. Clients can trade through us online on BSE and NSE for both equities and derivatives. corporate advisory.
In addition to transaction execution. jeera and cotton. Commodities broking is supported by a dedicated research cell that provides both technical as well as fundamental research.MUTUAL FUNDS AR is one of India's top mutual fund distribution houses. We offer you daily updated internet access to your holding statement and transaction summary. We firmly believe in the importance of selecting appropriate asset allocations based on the client's risk profile. guar gum and spices such as sugar. We have a dedicated mutual fund research cell for mutual funds that consistently churns out superior investment ideas. guar. DEPOSITORY SERVICES AR Depository Services provides you with a secure and convenient way for holding your securities on both CDSL and NSDL. independent and unbiased advice to our clients backed by in-depth research. we provide our clients customized advice on hedging strategies. Oils and Oilseeds. Our commodities broking services include online futures trading through NCDEX and MCX and depository services through CDSL. Our depository services include settlement. registration of shares and dematerialization.A whole new opportunity to hedge business risk and an attractive investment opportunity to deliver superior returns for investors . agri-commodities such as wheat. CDSL Depository NSDL Depository COMMODITIES Commodities broking. chana. Our success lies in our philosophy of providing consistently superior. picking best performing funds across asset classes and providing insights into performances of select funds. investment ideas and arbitrage opportunities. 63 . Our research covers a broad range of traded commodities including precious and base metals. clearing and custody of securities.
The firm deals with both life insurance and general insurance products across all insurance companies.INSURANCE BROKING As an insurance broker. of our vast of branches a dedicated team We have been consistently ranked among the top 10 distributors of IPOs on all major offerings. 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. The entire sales process and product selection is research oriented and customized to the client's needs. 64 . strong distribution capabilities and research the country. of which insurance is an integral part. Risk management includes identification. both within the business as well as on the personal front. a wide network across India. measurement and assessment of the risk and handling of the risk. Our IPO research team provides clients with indepth overviews of forthcoming IPOs as well as investment recommendations. we provide to our clients comprehensive risk management techniques. We lay strong emphasis on timely claim settlement and post sales services. Online filling of forms is also available. Our guiding philosophy is to manage the clients' entire risk set by providing the optimal level of cover at the least possible cost.
INVESTMENT BANKING AR Investment Banking provides comprehensive services to clients including raising money in the equity capital markets to identifying strategic alliances. fixed-floating. building in multiple variables such as currencies. defining the alternative sources of funding . textiles and sugar. in a comprehensive manner and finally negotiating with the prospective lenders / buyers. 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. tenure. mergers and acquisition opportunities and debt financing & restructuring advisory. telecom. 65 . Corporate Finance The AR Corporate Finance team helps clients manage their debtfinancing needs by profiling business and cash-flow risks. collateral etc. The Corporate Finance team has handled assignments in businesses like paper. hospitality.
To explain analysis of equity data.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. To review the concept and technique of price and trend analysis 66 . To understand the function of financial system. money and capital market. To understand the financial. and banking system. To explain stock exchange.
To make the people move aware about market 67 .• • • To asses the advantage and disadvantage of stock prediction If possible to design how stock prediction technique.
DEFINING THE OBJECTIVES: The aim of this project as has already been mentioned was to “sales and analysis of mutual funds. The research methodology consisted following steps: 1.RESEARCH METHODOLOGY AND LIMITATION RESEARCH DESIGN Problem is complex and real in nature.” For this our research contains two parts68 . lot of efforts have undergone for the research by meeting various people and asking them about their experience .various people have undergone huge losses in the stock market lot of material has been collected from the internet.
3. b. sampling plan and contact methods. books. COLLECTING THE INFORMATION With respect to primary and secondary data. from primary and secondary data. talking with people. Secondary data means that to get the data from the internet. Primary data tells us present scenario of financial market. company magazines. the information is collected. The PRIMARY DATA This type of data does not exist. But other approaches also used such as observation research. Analysis of different schemes of share market. SECONDARY DATA This type of data already exists. ii. DATA SOURCES Data was collected various sources are: i. DATA COLLECTION: Base on the above questionnaire data are collected by survey methods. various company broachers. journals and magazines of the company. and used to generate information as required. SAMPLING METHOD: 69 .a. DEVELOPING THE RESEARCH PLAN: This step called for decision on the data sources. RESEARCH APPROACH The research approach adopted here was the survey method. 1. it is originated by primary sources like personal interaction or field back forms. questionnaires that act as tools for collecting data. We collect the secondary data through Internet. talking with people and convince. 2. To sale the products we have to first generate database on the basis of marketing research.
The questionnaire designed was given to us from our immediate boss. is Random Sampling. and the final data was analyzed systematically to achieve the desired result. SECONDARY DATA The secondary data was collected by referring through web sites. percentage method was used. All the views and data obtained were also interpreted as clearly as possible. DATA ANALYSIS For analyzing the data obtained after conducting the survey. 70 . A part of Questionnaire was targeted to know the personal details of the respondents. Another part comprised of the selfdesigned questionnaire and will consist of closed ended questions with every question having its own importance and meaning. The sampling method. 2. The present study identifies views of customers & analysis of share market along with the selfanalysis.. which is adopted. STUDY The present investigation is a descriptive and marketing type of study undertaken to estimate the comparative study of share market analysis. DATA COLLECTION PRIMARY DATA The primary data to be selected was based upon the response of the respondents to the questionnaire designed. DATA ANALYSIS: 3. The Analysis of survey has been done on % basis.. The questionnaire consists of closed ended questions.
This procedure gives each item an equal probability of being selected. SAMPLE SIZE For the purpose of analysis a sample size of respondents was selected. The sample size taken was 60. SAMPLING METHOD The sampling method chosen for the project was “Random Sampling”. The target group of the respondent was job holders and an earning person whatever his/her age may be. 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.
it was found that out of customers were males and was females. we came to know that 73% of the users were males and the remaining 27% were females.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.like undergone earlier to there improve was the only predication techniques 72 . LIMITATION OF STUDY 1. lot of efforts have been . Thus.
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.
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.
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?
e. National Commodity Mumbai (NCDEX and Derivatives Exchange of India. Prices are pegged to international markets of NYMEX. at a guaranteed price Speculator: Speculators are participants who wish to bet on future movements in the price of an asset. Ahemdabad (NMCE 76 . EXIM Policies like tariff rates. which comes under the purview of the Ministry of Food. Who regulates the commodity exchanges? Just as SEBI regulates the stock exchanges. Higher Leverage: Get high exposures for the margin provided 4. What are the major commodity exchanges A. CBOT. C.g. How do commodity prices move? Natural Factors: Soil and climatic conditions. Mumbai (MCX B. Individuals. minimum support prices Annual production. 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. Who are the players in the Commodity Market ANS: Hedgers: Hedgers enter into commodity contracts to be assured access to a commodity.ANS: 1. consumption and carry-over quantity of stocks Economic policies and conditions Interest Rates . or the ability to sell it.e. CME. natural calamities etc Government Policies .g. LME etc 4. No counter party risks 3. Agriculture and Public Distribution 7. commodity exchanges are regulated by the Forwards Market Commission (FMC). Multi-Commodity Exchange of India Ltd. National Multi Commodity Exchange. hike in federal rates bring down the dollar. Hedgers 2.
which are not intended for delivery. are settled in cash BIBLIOGRAPHY Websites: www. Also the regulatory authorities ensure through continuous vigil that the commodity prices are marketdriven and free from manipulations.com www.sharekhan.com www. However all investments are subject to market risk and depend on the individual’s decision 10.karvay.religare.com 77 .com www.m.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.google. What are the commodity derivatives market timings? The commodity derivatives timings are: NCDEX & MCX Monday to Friday: 10 am to 11.8.com www.wikipedia. only Saturday: 10 am to 2 pm 9. What are the charges involved in trading on the exchanges Brokerage Service Tax Transaction Charges: Rs.com Indiainfoline. 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 www.30 pm (Agri-commodities up to 5 p.indiabulls.
Books. magazines& newspaper Business times Research methodology(c.s kothari) Economic times Financial management (paresh shah) 78 .