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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
Research objective Statement of problem Objective of the research project 4. and financial risk Function of stock exchange Service of stock exchange 2. 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. 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.CONTENTS 1. individual investors. Research methodology objective and limitation Problem definition Justification of study Objective of study Research design 4 .
Source of data Limitation of study 5. Questionnaire 5 . Conclusions and suggestions 6.
bseindia. It must be noted though that the value of the derivatives market. 12 times the size of the entire world economy.INTRODUCTION The Bombay Stock Exchange in India Type Location Owner Key people Currency No. The size of the world stock market is estimated at about $51 trillion. 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. India Bombay Stock Exchange Limited Rajnikant Patel (CEO) INR ~6.com/ STOCK MARKET A stock market. The world derivatives market has been estimated at about $480 trillion face or nominal value.61 trillion (2006) US$ 980 billion (2006) BSE Sensex http://www. or (equity market). because it is stated in terms of 6 .000 US$ 1. these are securities listed on a stock exchange as well as those only traded privately.
an informal meeting. In 1351 the Venetian government outlawed spreading rumors intended to lower the price of government funds.notional values. the Deutsche Borse and the Paris Bourse. Many such relatively illiquid securities are valued as marked to model.g. Because these men also traded with debts. Bankers in Pisa. This was only possible because these were independent city states not ruled by a duke but a council of influential citizens. European examples of stock exchanges include the London Stock Exchange. In 12th century France the courratiers de change were concerned with managing and regulating the debts of agricultural communities on behalf of the banks. OTCBB and Pink Sheets. as well as on the many regional exchanges. There are now stock markets in virtually every developed and most developing 7 . which let shareholders invest in business ventures and get a share of their profits . The idea quickly spread around Flanders and neighboring counties and "Beurzen" soon opened in Ghent Antwerp and Amsterdam. Genoa and Florence also began trading in government securities during the 14th century. rather than an actual market price. disproving the belief that these were invented later by Italians. 2001). merchant banking. institutionalizing what had been. The stock market in the United States includes the trading of all securities listed on the NYSE. Verona. It was the first company to issue stocks and bonds. In late 13th century Bruges commodity traders gathered inside the house of a man called Van der Beurse. e. the Amex.7. London Review of Books XXIII. In 1602. and cannot be directly compared to a stock or a fixed income security. 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. which traditionally refers to an actual value. April 5. unit trusts and other speculative instruments. much as we know them" (Murray Sayle. the NASDAQ. The Dutch later started joint stock companies. debt-equity swaps. "Japan Goes Dutch".or losses. HISTORY Historian Fernand Braudel suggests that in Cairo in the 11th century Muslim and Jewish merchants had already set up every form of trade association and had knowledge of many methods of credit and payment. The 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. and in 1309 they became the "Brugse Beurse". The Dutch "pioneered short selling. the Dutch East India Company issued the first shares on the Amsterdam Stock Exchange. until then. they could be called the first brokers. option trading. In the middle of the 13th century Venetian bankers began to trade in government securities.
(Buying or selling at market means you will accept any ask price or bid price for the stock. This type of auction is used in stock exchanges and commodity exchanges where traders may enter "verbal" bids and offers simultaneously. Once a trade has been made the details are reported on the "tape" and sent back to the brokerage firm. India. no trade immediately takes place--in this case the specialist should use his/her own resources (money or stock) to close the difference after his/her judged time. who can be based anywhere. Some exchanges are physical locations where transactions are carried out on a trading floor. If a spread exists. Germany. to facilitate the exchange of sellers. The NASDAQ is a virtual listed exchange. The specialist's job is to match buy and sell orders using open outcry.economies. who executes the order. a sale takes place on a first come first served basis if there are multiple bidders or askers at a given price. computers play an important role. France and Japan. Orders enter by way of exchange members and flow down to a specialist. Their orders usually end up with a professional at a stock exchange. with the world's biggest markets being in the United States. One or more NASDAQ market of the similar sellers makers 8 . also referred to as a listed exchange — only stocks listed with the exchange may be traded. composed of a network of computers where trades are made electronically via traders. where all trading is done over a computer network. respectively. Although there is a significant amount of human contact in this process. The trading information on the listed discovery. who goes to the floor trading post to trade stock. However. thus providing a exchanges provide real-time securities. which then notifies the investor who placed the order. The purpose of a stock exchange is securities between buyers and marketplace (virtual or real). Canada. 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. facilitating price The New York Stock Exchange is a physical exchange. The process is to the New York Stock Exchange.) When the bid and ask prices match. especially for so-called "program trading". TRADING Participants in the stock market range from small individual stock investors to large hedge fund traders. The other type of exchange is a virtual kind. buyers and are electronically matched. by a method known as open outcry. China (Hong Kong). UK.
hedge funds. the CATS trading system was introduced. Now that computers have eliminated the need for trading floors like the Big Board's. mutual funds. electronic stock exchange. such as wealthy businessmen. The Paris Bourse. Prior to the 1980s. but only for large institutions). according to data compiled by Boston-based Aite Group LLC. In 1986. 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. active trading (especially in large blocks of securities) have moved away from the 'active' exchanges. it consisted of an open outcry exchange. Securities firms. 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. From time to time. buyers and sellers are largely institutions (e. Over time.will always provide a bid and ask price at which they will always purchase or sell 'their' stock. 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. where clients can move big blocks of stock anonymously. now part of Euronext. It was automated in the late 1980s. Goldman Sachs Group Inc. the balance of power in equity markets is shifting. and banks).. a brokerage-industry consultant . insurance companies. By bringing more orders in-house. already steer 12 percent of U. Stockbrokers met on the trading floor or the Palais Brongniart. and the order matching process was fully automated. led by UBS AG. and Credit Suisse Group. is an order-driven.g. security trades away from the exchanges to their internal systems. pension funds. Thus. However. buyers and sellers were individual investors. investor groups. markets have become more "institutionalized". the government was responsible for "fixed" (and exorbitant) fees being markedly reduced for the 'small' investor.S. The rise of the institutional investor has brought with it some improvements in market operations. corporate governance (at least in the West) has been very much adversely affected by the rise of (largely 'absentee') institutional 'owners' 9 . worldwide.
in general. Rising share prices.IMPORTANCE OF STOCK MARKET The stock market is one of the most important sources for companies to raise money. on the smooth operation of financial system functions. tend to be associated with increased business investment and vice versa. Financial stability is the raison d'être of central banks. 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. History has shown that the price of shares and other assets is an important part of the dynamics of economic activity. This allows businesses to be publicly traded. for instance. 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. Therefore. Share prices also affect the wealth of households and their consumption. This is an attractive feature of investing in stocks. or raise additional capital for expansion by selling shares of ownership of the company in a public market. This eliminates the risk to an individual buyer or seller that the counterparty could default on the transaction. 10 . Exchanges also act as the clearinghouse for each transaction. meaning that they collect and deliver the shares. and can influence or be an indicator of social mood. 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. and guarantee payment to the seller of a security.
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. (Something like seeing familiar shapes in clouds or ink blots.) 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). a study of the fifty largest one-day share price movements in the United States in the post-war period confirms this. Various explanations for large price movements have been promulgated. only changes in fundamental factors. New theoretical and empirical arguments have been put forward against the notion that financial markets are efficient. ought to affect share prices. many studies have shown a marked tendency for the stock market to trend over time periods of weeks or longer. such as stop-loss limits and Value at Risk limits. in fact. Overreactions may occur—so that excessive optimism (euphoria) may drive prices unduly high or excessive pessimism may drive prices unduly low. A 11 . to this day. It also seems to be the case more generally that many price movements are not occasioned by new information. having priced in all public knowledge. (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. some research has shown that changes in estimated risk.. Moreover. when the Dow Jones index plummeted 22. such as profits or dividends.6 percent—the largest-ever one-day fall in the United States. For instance. Psychological research has demonstrated that people are predisposed to 'seeing' patterns. Other research has shown that psychological factors may result in exaggerated stock price movements. just noise. and the use of certain strategies. theoretically could cause financial markets to overreact. while the EMH predicts that all price movement (in the absence of change in fundamental information) is random (i.e. This event demonstrated that share prices can fall dramatically even though. non-trending). and often will perceive a pattern in what is. According to the efficient market hypothesis (EMH).) But the efficient-market hypothesis is sorely tested by such events as the stock market crash in 1987.THE BEHAVIOR OF THE STOCK MARKET From experience we know that investors may temporarily pull financial prices away from their long term trend level.
popularly called The Bombay Stock Exchange. On 31 December 2007. making it the largest stock exchange in South Asia and the tenth largest in the world. Mumbai. The stock market. The players now must give heavy weight to the psychology of other investors and how they are likely to react psychologically. stocks and other securities can be battered or buoyed by any number of fast market-changing events. Inexperienced investors rarely get the assistance and support they need. and it has a significant trading volume. Over the short-term.000 listed companies as of August 2007. reducing his (psychological) risk threshold. making the stock market difficult to predict. self- In one paper the authors draw an analogy with gambling. In times of market stress. It is located at Dalal Street. It is also the biggest stock exchange in the world in terms of listed companies with 6. The media amplified the general euphoria. even if that news has no real effect on the technical value of securities itself. the equity market capitalization of the companies listed on the BSE was US$ 1. is quite unforgiving of amateurs. less than 1 per cent of the analyst's recommendations had been to sell (and even during the 2000 . 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.period of good returns also boosts the investor's confidence. Around 6. as any other business. (And later amplified the gloom which descended during the 2000 . IRRATIONAL BEHAVIOR Sometimes the market tends to react irrationally to economic news. The BSE SENSEX (SENSitive 12 . euphoria and mass panic. In normal times the market behaves like a game of roulette. the stock market can be swayed tremendously in either direction by press releases. India.2002 crash.. however.2002 crash. 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. the probabilities are known and largely independent of the investment decisions of the different players. the average did not rise above 5%). the game becomes more like poker (herding behavior takes over). The Stock Exchange.79 trillion. so that by summer of 2002.000 Indian companies list on the stock exchange. or BSE) is the oldest stock exchange in Asia. Therefore. In the period running up to the recent Nasdaq crash. Mumbai. predictions of a DOW average below 5000 were quite common. The Bombay Stock Exchange was established in 1875. rumors.
Apart from BSE SENSEX. Though many other exchanges exist. These companies account for around one-fifth of the market capitalization of the BSE. which is the most popular stock index in India.indEX). with the base April 1979 = 100. also called the "BSE 30". 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. 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 . The set of companies which make up the index has been changed only a few times in the last twenty years.
1990. 1990 On July 25. This new system was unveiled on December 15. 2006. July 25.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. the Chairman of the Securities and Exchange Board of India (SEBI). 1000. the Managing Director of New Delhi Television (NDTV) Ltd. which continuously displays the latest stock quotes from the market. 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. 14 . struck the BSE's opening bell.001 in the wake of a good monsoon season and excellent corporate results. Mr Damodaran. Following is the timeline on the rise and rise of the Sensex through Indian stock market history. when Dr Prannoy Roy. the Sensex touched the magical four-digit figure for the first time and closed at 1.
2006 touched 10. March 30.000-mark as the BJP-led coalition won the majority in the 13th Lok Sabha election.003 points during mid-session. 2006 crossed the magical figure of 11. February 11. 2006 The Sensex on March 21.000-mark and closed at 4. 2006 The Sensex on February 6. Reliance Capital.091 on the expectations of a liberal export-import policy.006. Reliance Energy.000 points. 1999 On October 8. 1992 On March 30. 1992 On January 15. It was then that the Harshad Mehta scam hit the markets and Sensex witnessed unabated selling. However. February 29. the news of the settlement between the Ambani brothers boosted investor sentiments and the scrips of RIL. 2005 On June 20. 6000. January 15. 2005. the Sensex surged past the 3000 mark in the wake of the market-friendly Budget announced by the then Finance Minister. June 20. This helped the Sensex crossed 7. and IPCL made huge gains. February 6. the Sensex crossed the 5. 15 .000. March 21. the infotech boom helped the Sensex to cross the 6. the Sensex crossed the 4. 10.001 points during mid-session at the Bombay Stock Exchange for the first time. 1992. 2005 crossed the magical figure of 9000 to touch 9000. September Stock Exchange's crossed the 8000 domestic funds in 8.020 followed by the liberal economic policy initiatives undertaken by the then finance minister and current Prime Minister Dr Manmohan Singh. 1992. Dr Manmohan Singh.000-mark and closed at 2. 3000. The Sensex finally closed above the 10K-mark on February 7. 2005 On September 8. 7000. 1992 On February 29. 2005.32 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. October 8. 4000. 8000. 2006 that the Sensex first closed at over 11. 2005 The Sensex on November 28. 2000 On February 11. 11. 9000.2000. the Sensex crossed the 2. 2006. 5000. 1992.000-mark and hit and all time high of 6.000 and touched a life-time peak of 11. November 28.000. the Bombay benchmark 30-share index -. 2000.000 points for the first time.the Sensex -level following brisk buying by foreign and early trading. 1999. it was on March 27.
13. It took just 8 days to cross 18.000. 14. It took seven months for the Sensex to move from 14. The NSE Nifty gained 186 points to close at 4. The index gained the 16 . The index zoomed to a new alltime intra-day high of 18.000-mark . It took 135 days for the Sensex to move from 12. 18.887 .040 points for the first time. The 30-share Bombay Stock Exchange's sensitive index took 53 days to reach 16.down 187 points from the day's high.732.000. 2006 The Sensex on April 20. up 117.000 to the 14. It finally gained 789 points to close at an all-time high of 18.000-mark to touch 14.000 and 123 days to move from 12. It took 36 days for the Sensex to move from 13. 2007. 2007 The Sensex scaled yet another height during early morning trade on September 26. October 15. September 19.000 to 15.323. the Sensex crossed the 17.000 and closed at 13.000 mark.000 points from the 17.000 to touch 15. rising by 450 points from the previous close. 19. Some profit taking towards the end.500 to 13.327. the Sensex crossed 16.000.000 from 15. 15. 2006 crossed the 14. The market set several new records including the biggest single day gain of 789 points at close. 16.000 mark.9%. 2006 The Sensex on October 30. October 09. Within minutes after trading began. 2007.280.000. The Sensex finally ended with a gain of 654 points at 16. saw the index slip into red to 16. 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.921. up 113 points. October 30. 2007 The Sensex crossed the 19.12. Nifty also touched a new high at 4659.000. 17. December 5. 2006 crossed the magical figure of 13.000-mark and closed at a peak of 12. Within minutes after trading began. capital goods and refinery sectors. 2006 crossed the 12. April 20.000.005 points in afternoon trade. The Sensex ended with a gain of 22 points at 16.26 points. 2007 The BSE Sensex crossed the 18.000-mark backed by revival of funds-based buying in blue chip stocks in metal.000.024.000 points. 2006 The Sensex on December 5.000. 2007 The Sensex on July 6.000. July 6.45 points or 0.028 points. 2007.000 to 13.000.000. 2007 crossed the magical figure of 15.000mark on October 09. 2007 The Sensex scaled yet another milestone during early morning trade on September 19. September 26.
October 29.822. then pulled back and ended up at 14. 2008 The sensex touched an intra day low of 13. June 13. 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 20.2008 14.000-mark on October 15.200. 15.50 points before ending at 5. Bloomberg lists them as the top two gainers for the Sensex. and finally ended with a smart gain of 640 points at 19. July 2. on January 10th.220 amidst a negative sentiment generated on the Reserve Bank of India hiking CRR by 50 bps.731 during the early trades. FII outflow continued in this week. This is a bad time for the Indian markets. closely followed by ICICI Bank and ITC Ltd 17 .000 mark in intra-day trading after 49 trading sessions.70 on July 2nd. 2008.70.000 points after the index crossed the 19.822. 20.last 1.922.67. Reliance Industries. June 25. This is the lowest that it has ever been in the past year.024. The major drivers of today's rally were index Heavyweights Larsen and Toubro.000 points in just four trading days. 2008 The sensex crossed the 21.059. The index touched a fresh all-time intra-day high of 19. 12.977. it later fell back due to profit booking.905.87 points before ending at its fresh closing high of 19. Indian market suffer with major downfall from January 21. The NSE Nifty rose to a record high 5.000. Six months ago.220. 2008 The sensex hit an intra day low of 12. The index took only 10 trading days to gain 1. January 8. However. ICICI Bank. the market had hit an all time high of 21206.60 points. 2008. a gain of 734.200 mark. showing a hefty gain of 203.000.000 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. 2007 The Sensex crossed the 20.90.096.670. HDFC Bank and SBI among others. 2008 The sensex closed below 15.50 points. although Reliance and Infosys continue to lead the way with mostly positive results.The Nifty gained 242 points to close at 5. 21.
of listings MarketCap Indexes Website Stock Exchange Mumbai.com/ The National Stock Exchange of India Limited (NSE). India 19°3′37″N. for both equities and derivative trading.nse-india. 18 . and between them are responsible for the vast majority of share transactions. The NSE's key index is the S&P CNX Nifty.46 trillion (2006) S&P CNX Nifty CNX Nifty Junior S&P CNX 500 http://www.NATIONAL STOCK EXCHANGE LIMITED Type Location Coordinates Owner Key people Currency No. an index of fifty major stocks weighted by market capitalisation. known as the Nifty. is a Mumbai-based stock exchange. Though a number of other exchanges exist. It is the largest stock exchange in India in terms of daily turnover and number of trades. 72°51′35″E National Stock Exchange of India Limited Mr. Ravi Narain Managing Director INR 1587 US$ 1. NSE and the Bombay Stock Exchange are the two most significant stock exchanges in India..
[[Image:National Stock exchange Kolkata. the NSE VSAT terminals. Since the success of the NSE. it was recognized as a stock exchange under the Securities Contracts (Regulation) Act.6%." in India. electronic limit order book (LOB) exchange to trade securities in India. The Capital Market (Equities) segment of the NSE commenced operations in November 1994. banks. In October 2007. 19 . NSE is the third largest Stock Exchange in the world in terms of the number of trades in equities. INNOVATIONS NSE has remained in the forefront of modernization of India's capital and financial markets. Origins NSE building at BKC The National Stock Exchange of India was promoted by leading Financial institutions at the behest of the Government of India. insurance companies and other financial intermediaries in India but its ownership and management operate as separate entities. As of 2006. cover more than 1500 cities across India . and its pioneering efforts include: • • Being the first national. derivatives market) trades in India.It is the second fastest growing stock exchange in the world with a recorded growth of 16.46 trillion. In April 1993. existent market and new market structures have followed the "NSE" model. and was incorporated in November 1992 as a tax-paying company. the equity market capitalization of the companies listed on the NSE was US$ 1. 2799 in total.NSE is mutually-owned by a set of leading financial institutions. NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. Setting up the first clearing corporation "National Securities Clearing Corporation Ltd. 1956. while operations in the Derivatives segment commenced in June 2000. NSCCL was a landmark in providing innovation on all spot equity market (and later. anonymous. making it the second largest stock exchange in South Asia.
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 has also launched the NSE-CNBC-TV18 media centre in association with CNBC-TV18 MARKETS Currently. in India. After four years of policy and regulatory debate and formulation. 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 . NSE pioneered commencement of Internet Trading in February 2000. particularly on an equity index. Being the first exchange that. in 1996. which led to the wide popularization of the NSE in the broker community. Setting up of S&P CNX Nifty. 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. proposed exchange traded derivatives.• • • • • • Co-promoting and setting up of National Securities Depository Limited. first depository in India.
covering different sectors of financial and capital markets. commodities. TYPES OF TRADERS IN A DERIVATIVES MARKET Hedgers. forward contracts. Because derivatives are just contracts. options and swaps are the most common types of derivatives. For example. To hedge this risk. bonds. HEDGERS: Hedgers are those who protect themselves from the risk associated with the price of an asset by using derivatives. he sells futures contracts. speculators and arbitrators are the types of traders in derivatives market. interest rates and market indexes. certifications are available in 19 modules. the investor could purchase currency futures to lock in a specified exchange rate for the future stock sale and currency conversion back into euros. The most common underlying assets include stocks. Its value is determined by fluctuations in the underlying asset. A person keeps a close watch upon the prices discovered in trading and when the comfortable price is reflected according to his wants. just about anything can be used as an underlying asset. currencies. The derivative itself is merely a contract between two or more parties. 21 . 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. Most derivatives are characterized by high leverage. In this way he gets an assured fixed price of his produce. Branches of the NSE are located throughout India. Derivatives are generally used to hedge risk. Currently. such as the amount of rain or the number of sunny days in a particular region. There are even derivatives based on weather data. under its programmes of NSE's Certification in Financial Markets (NCFM). Futures contracts. DERIVATIVE In finance. but can also be used for speculative purposes.CERTIFICATIONS NSE also conducts online examination and awards certification. a security whose price is dependent upon or derived from one or more is underlying assets.
Selling a futures contract in anticipation of a price decrease is known as ‘going short’. but a performance bond. or individuals. he can make more money in the futures market faster because prices tend. Since cash and futures prices do tend to move in tandem. They actually bet on the future movement in the price of an asset. Buying a futures contract in anticipation of price increases is known as ‘going long’. to change more quickly than real estate or stock prices. yet he can ride on the full value of the contract as it moves up and down. Hedgers are often businesses. Take an example: A Hedger pay more to the farmer or dealer of a produce if its prices go up. They are the second major group of futures players. The money he puts up is not a down payment on the underlying contract. Speculators have certain advantages over other investments they are as follows: • If the trader’s judgment is good.In general. hedgers use futures for protection against adverse future price movements in the underlying cash commodity. the futures position will profit if the price of the produce rise enough to offset cash loss on the produce. 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. on average. Speculative participation in futures trading has increased with the availability of alternative methods of participation. 22 • . They are never interested in actual owing the commodity. SPECULATORS: Speculators are some what like a middle man. The actual value of the contract is only exchanged on those rare occasions when delivery takes place. Futures are highly leveraged investments. They handle trades for their personal clients or brokerage firms. The trader puts up a small fraction of the value of the underlying contract as margin. They will just buy from one end and sell it to the other in anticipation of future price movements. These participants include independent floor traders and investors. who at one point or another deal in the underlying cash commodity.
lower ring the cost positive directions. analysts. Thus we find that a financial system has an impact on the basic existence of an economy and its citizens. The phenomenon of imbalance in the distribution of capital of funds exists in every economy system. A financial system is a composition of various institutions. practices. money. There are areas or people with surplus funds as also those with a deficit. `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. a person who has been officially chosen to make a decision between two people or groups who do not agree is known as Arbitrator. managers.similarly. markets. he will take offsetting positions in both the markets to lock in a profit. employment and growth of the economy . transactions and claims and liabilities. regulations and laws.ARBITRATORS: According to dictionary definition. The financial system helps to determine both the cost and the volume of credit. A financial system functions as an intermediary and a facilitates the flow of funds from the areas of surplus to those of deficit. productions. The system can affect a rise in the cost of funds which adversely affects consumption. In commodity market Arbitrators are the person who takes the advantage of a discrepancy between prices in two different markets. If he finds future prices of a commodity edging out with the cash price.
in India . etc. the compromise one makes in such investment is (1) that the risk involved is more and (2) the degree of liquidity conversion of the claims into money is less. bonds. but its value is almost eroded by inflations.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 financial markets provide the investor the opportunity to liquidate the investments. debentures. The funds in the hands of the producers result in production of better goods and services. which promise future income flows. However the growth of the investment and living standard begins to fall 2: LIQUIDITY FUNCTIONS: Of all financial instruments. Financial claims are issued in the money and capital markets. money is the form of deposits offers the least risk. increasing society’s standard of living when saving flows decline.the cost and time for transaction are drastically reduced . 3: PAYMENT FUNCTION: The financial system offers a very convenient mode of payment for goods and services. the credit card system 24 .while the cheque system of payment is widely practiced . That is why one always prefers to store the funds in financial instruments like stocks. The cheque system and credit card system are the easiest methods of payment in the economy .
stocks and shares are traded between buyers and sellers in a number of ways including: the use of stock exchanges. which provide financing through the issuance of shares or common stock. 25 . 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. i. TYPES OF FINANCIAL MARKETS The financial markets can be divided into different subtypes: Capital markets which consist of: Stock markets. and properly insurance policies .the financial markets provide immense opportunities for the investor to hedge himself against of reduce the possible risk involved in various investments. Financial markets can be domestic or they can be international. These guarantees are accomplished through the sale of life and health insurance. 4: RISK FUNCTION: The financial markets provide protection against life. directly between buyers and sellers etc. Stock exchanges facilitate the trade in stocks. In academia.has entered only recently into urban India and is widely used in these areas for payments of consumption expenditure. students of finance will use both meanings but students of economics will only use the second meaning.e. organizations that facilitate the trade in financial securities. and enable the subsequent trading thereof.e. health and income risks. Financial markets could mean: 1. 2. the coming together of buyers and sellers to trade financial securities. i. bonds and warrants. Definition.
Secondary markets allow investors to sell securities that they hold or buy existing securities. commodities. which provide standardized forward contracts for trading products at some future date. what is their purpose? Without financial markets. let us look at what they are used for.e. Banks take deposits from those who have money to save. A good example of a financial market is a stock exchange. which provide short term debt financing and investment. and where existing borrowing or lending commitments can be sold on to other parties. see also forward market. Intermediaries such as banks help in this process. which facilitate the redistribution of various risks. Commodity markets. borrowers would have difficulty finding lenders themselves. markets.Bond markets. Newly formed (issued) securities are bought or sold in primary markets. which provide financing through the issuance of Bonds. provide instruments for the Futures markets. Derivatives markets. which facilitate the trading of The capital markets consist of primary markets and secondary markets. They can then lend money from this pool of deposited money to those who seek to borrow. Banks popularly lend money in the form of loans and mortgages. A company can raise money by selling shares to investors and its existing shares can be bought or sold. i. RAISING CAPITAL To understand financial markets. which management of financial risk. Insurance markets. and enable the subsequent trading thereof. The following table illustrates where financial markets fit in the relationship between lenders and borrowers: 26 . which facilitate the trading of Money markets. Foreign exchange foreign exchange. More complex transactions than a simple bank deposit require markets where lenders and their agents can meet borrowers and their agents.
but almost everybody does lend money in many ways. they may seek to make money from their cash surplus by lending it via short term markets called money markets. or invests in company shares. These companies tend to be lenders rather than borrowers. 27 . invests in government bonds. they may seek to make more money on their cash by lending it (e. They also borrow to fund modernisation or future business expansion. via a share buyback.g. When companies have surplus cash that is not needed for a short period of time. Companies borrow money to aid short term or long term cash flows. A person lends money when he or she: • • • • • puts money in a savings account at a bank. investing in bonds and stocks. Such companies may decide to return cash to lenders (e. 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. There are a few companies that have very strong cash flows.) Alternatively. contributes to a pension plan.g. 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.
One strategy used by governments to reduce the value of the debt is to influence inflation. interest rates and dividends go up and down. importers and exporters 28 . DERIVATIVE PRODUCTS During the 1980s and 1990s. the government also borrows from individuals by offering bank accounts and Premium Bonds. In the UK. Indeed the debt seemingly expands rather than being paid off. bond prices. currency rates. They need to borrow internationally with the aid of Foreign exchange markets. local authorities and other public sector bodies. In the financial markets. the most obvious buyers and sellers of foreign exchange are importers/exporters. a major growth sector in financial markets is the trade in so called derivative products. the total borrowing requirement is often referred to as the public sector borrowing requirement (PSBR). or derivatives for short. Municipalities and local authorities may borrow in their own name as well as receiving funding from national governments. These may include the postal services. It is also called financial economics. CURRENCY MARKETS Main article: Foreign exchange market Seemingly. municipalities. creating risk. To make up this difference. Derivative products are financial products which are used to control risk or paradoxically exploit risk. whereby importers/exporters created the initial demand for currency markets.Governments often find their spending requirements exceed their tax revenues. While this may have been true in the distant past. Governments also borrow on behalf of nationalised industries. Public Corporations typically include nationalised industries. Government debt seems to be permanent. In the UK. this would cover an authority like Hampshire County Council. stock prices. In the UK. railway companies and utility companies. Governments borrow by issuing bonds. Many borrowers have difficulty raising money locally. they need to borrow.
such as the U. 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 claims of the technical analysts are disputed by many academics. The capital market is the market for securities. at least in the short term. 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. This is the basis of the so-called technical analysis method of attempting to predict future changes. or volatiliy. Charles Dow. Financial regulators. The scale of changes in price over some unit of time is called the volatility. which states that the next change is not correlated to the last change. who claim that the evidence points rather to the random walk hypothesis.now represent only 1/32 of foreign exchange dealing. to meet the long term needs of business enterprises . The capital market includes the stock market and the bond market. enunciated a set of ideas on the subject which are now called Dow Theory.S. Securities and Exchange 29 . depends on the length of the time unit to a power a bit more than 1/2. but are rather modeled better by Lévy stable distributions. where companies and governments can raise longterm funds. The picture of foreign currency transactions today shows: • • • • • Banks and Institutions Speculators Government spending (for example. according to BIS. Large changes CAPITAL MARKET Capital market is an organized market for long term funds required . The scale of change. one of the founders of Dow Jones & Company and The Wall Street Journal.
financial and government market for industrial. Stock exchange also helps the public sector undertaking and the government in raising long term loans. 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 . The capital markets consist of the primary market. oversee the capital markets in their designated countries to ensure that investors are protected against fraud. financial and government securities. where existing securities are traded. where new issues are distributed to investors. It operates as per well defined rules and regulation. It is privately owned by individuals. 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. and the secondary market. It facilitates marketing in securities and also controls the trading activities. selling and dealing in securities. FEATURES It is an organized market for buying. In brief. It is a recognized association and is controlled by the state under a special act. STOCK EXCHANGE Stock exchange is an organized market for industrial.Commission.
Stock exchange provides capital for industrial growth. modernization or rationalization. This enhances the financial status and increase the bargaining power of the company in the collective ventures. who gain confidence by providing continuous marketing facilities. They enable the companies to collect adequate capital for formation. • • Stock exchange guides the investors choice of securities to be bought. 31 . Stock exchange provides information about the value of securities to the investors through daily quotations of listed securities. in fact.SERVICE TO COMPANIES Companies raising their capital through stock exchange will find better response to their security issues. Market value of the securities is slightly more in relation to earning and property values. is a gift to the investors. • • • 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. regarding the Stock exchange maintains liquidity of securities by enabling the holders to sell them whenever they need liquid fund.merger. Stock exchange authorities properly evaluated the listed secutities. • Stock exchange provides a large marker for the listed securities.therefore purchasing of listed securities because less risky. • Stock exchange increases the credit standing and goodwill of the companies whose securities are listed.etc • • SERVICES TO INVESTORS Stock exchange. expansion. Listed securities get quicker and better response are from investors.
has been an important component of this process. The trend towards forms of saving with a higher risk has been accentuated by new rules for most funds and insurance. In the 1970s. insurance investment of premiums.g. 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. 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. the United States. mutual funds. One feature of this development is disintermediation. such securities are called listed securities. pension funds. such as the European Union. 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. Japan and other developed nations. either directly or through mutual funds. Similar tendencies are to be found in other industrialized countries.A stock exchange does not deal in the securities of all the companies . compared to less than 20 per cent in the 2000s. permitting a higher proportion of shares to bonds. etc. the trend has been the same: saving has moved away from traditional (government insured) bank deposits to more risky securities of one sort or another 32 . The general public's heightened interest in investing in the stock market. e. hedge funds. In all developed economic systems. deposit accounts and other very liquid assets with little risk made up almost 60 per cent of households' financial wealth. Statistics show that in recent decades shares have made up an increasingly large proportion of households' financial assets in many countries. in Sweden..it selects certain securities for transaction.
only folly. financial writers. AND FINANCIAL RISK Riskier long-term saving requires that an individual possess the ability to manage the associated increased risks. analysts. and people who have turned to investing for their children's education and their own retirement become frightened. are exchanging questionable and often misleading tips.e. Yet. This is something that could affect not only the individual investor or household.. Stock prices fluctuate widely. then plummet just as quickly. This is certainly more important now that so many newcomers have entered the stock market. INDIVIDUAL INVESTORS. 33 . The following deals with some of the risks of the financial sector in general and the stock market in particular. in marked contrast to the stability of (government insured) bank deposits or bonds. despite all this available information. Television commentators. With each passing year. or have acquired other 'risky' investments (such as 'investment' property. and market strategists are all overtalking each other to get investors' attention. i. immersed in chat rooms and message boards. but also the economy on a large scale. investors find it increasingly difficult to profit. individual investors. At the same time. real estate and collectables).THE STOCK MARKET. Sometimes there appears to be no rhyme or reason to the market. the noise level in the stock market rises. Stock prices skyrocket with little reason.
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.This is a quote from the preface to a published biography about the long-term value-oriented stock investor Warren Buffett. Over the years he has built himself a multi-billion-dollar fortune. 34 . Buffett began his career with $100.000 from seven limited partners consisting of Buffett's family and friends.
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 . kotak securities ltd has been the largest in IPO distribution.
sharekhan online trading and investment site www.NSE derivatives commodities depository services online trading and investment advice . 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. 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.sharekhan. in the investment advisors category Share khan equity related services include trade execution on BSE.service limited . with the backing of an expert. 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. The portfolio management service provides top class service catering to the high end of the market.. 36 . Sharekhan. Kotak securities have 813 outlets servicing more than 315000 customers and a coverage of 277 cities.com was launched in 2000 .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.
Share khan give to more information how to invest in the share market. Share. Share Khan commissioned its shares and equities at Satara Road. Sharekhan won the award by vote of customer around the country.Sharekhan Bag round network includes over 250 centres across 123 cities in India and having around 120000 customers and equal number of demat customers. Commodities and Mutual funds are in this firm. Pune in 1962 and has today grown to become the country’s largest integrated share transfer and ranks 37 . This is not only Share but bulk of the commodities. which types more earn money in the through the share market. 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. This is only Share and Equity broking firm in India. intangible preference features like imagery. Established in 1958. is structured into strategic businesses —Equities. this is one of the branches in the Pune. equity driving Tactical measures such as promotional /pricing schemes ABOUT THE COMPANY Share Khan Limited. a flagship broking firm in the share market. The reason behind the preferences for brands were unveiled by examines the following: • • • Tangible features of product /service Softer. Mutual funds. as part of India largest consumer study cover 7000 respondents 21 product and service across 21 major cities. The head office of Share Khan is in the Mumbai.
Share Khan acquired two captive markets in Nifty. subscriptions and insurance MARKET SHARE ANALYSIS 38 . debt financing (for example issuing bonds) can be done to avoid giving up shares of ownership of the company. BSE and NSE.among the top quartile of low broking intra day and delivery charges in the world. Trade financing is provided by vendors and suppliers who sell their products to the company at short-term. 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). With a strategic intent to achieve vertical integration in the share business. MEANS OF FINANCING Financing a company through the sale of stock in a company is known as equity financing. usually 30 days. Customer provided financing exists when a customer pays for services before they are delivered. e.g. Alternatively. Equity and debt financing are usually used for longer-term investment projects such as investments in a new factory or a new foreign market.
e.e. i. There are basically two ways in which you can invest in shares: Purchase shares from The primary market (I. 1) Possibility of high returns 2) Easy liquidity 3) Unbeatable tax benefits 4) Income from dividends SO HOW DOES ONE BUY SHARES? . Stock exchanges 39 . if any.OTHER BENEFITS OF INVESTING IN SHARES? Because they can make big money on it. Compared to your investments in fixed deposits in banks it makes more profits. IPO's) Trade in the Secondary Market. but the bad news is that you are also expected to bear the losses.
Some of the criteria they follow include: 1) Market capitalization. 5) Listed history 40 . 4) Industry representation. 2) Liquidity.They are selected by the Index committee. 3) Continuity.
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.428 41 .COMPUTATION OF STOCK INDEX: A stock market may either be a price index or a wealth index.) 300/800/3000/4100/- TATA INFOSYS IBM TOTAL MARKET CAP Face value=Rs. In India most of the indices are using wealth index for computation of stock market.) Price on 18/02/06 200/600/2000/2800/30/40/150/Market cap (Rs.10/Base value=100/Index present value= (100*4100)/2800= 146.
straddle the entire financial services space with offerings ranging from Equity research. Mutual Funds. It has more than 800.indiainfoline. It has recently launched its Investment banking and Institutional Broking business.000 customers India Infoline Limited is listed on both the leading stock exchanges in India. It offers broking services in the Cash and Derivatives segments of the NSE as well as the Cash segment of the BSE.com/ The company has a network of 758 business locations (branches and sub-brokers) spread across 346 cities and towns. Equities and derivatives trading. Wealth Advisory Services and Portfolio Management Services.5paisa. comprising the holding company. Portfolio Management Services. It is engaged in the businesses of Equities broking. GoI bonds and other small savings instruments to loan products and Investment banking. Commodities trading. India Infoline also owns and manages the websites http://www.The India Infoline group. providing a one-stop solution for clients trading in the equities market. 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.com/and http://www. Fixed deposits. the Stock Exchange. viz. It is registered with NSDL as well as CDSL as a depository participant. Life Insurance.
Bonanza confidently steers you through a challenging Financial and Trade Market every moment. Bombay Stock Exchange (BSE) and dealer with Over the Counter Exchange of India (OTCEI) we handle your trading needs. through a network of experienced dealers across the country.Bonanza is a leading Financial Services & Brokerage House with acknowledged industry Leadership in execution and clearing services on Exchange Traded Derivatives and cash market products. whether you are present or not! EQUITY Being a member of the National Stock Exchange (NSE).online and Strategic tie-ups with latest technology partners to facilitate trading access and direct processing across more than 900 Branches spread over 310 cities . Key elements that place Bonanza amongst the leading Brokerage Houses and make it the preferred service provider for value based financial services are: • • • A Client-driven foundation and strategy committed to client-specific investment needs and objectives. 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. Integrated and innovative use of Technology enabling clients to trade offline. and through our comprehensive website. 43 .
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. Karvy ranks among the top player in almost all the fields it operates. in the realty sector. has quickly established itself as a broker who adds value. With over 6. 44 . India.000 crores under management. Registered with AMFI as a corporate Agent. member of National Stock Exchange of India and the Bombay Stock Exchange. Member of NCDEX and MCX ranks among the top 3 commodity brokers in the country.US The Karvy group was formed in 1983 at Hyderabad. Karvy Global offers niche off shoring services to clients in the US. managing over 2 crore accounts. Karvy Computershare Limited is India’s largest Registrar and Transfer Agent with a client base of nearly 500 blue chip corporates. Over 9. Karvy is also among the top Mutual Fund mobilizer with over Rs. 5. which started in 2006. Karvy Comtrade. it ranks among the top 5 Depositary Participant in India. Karvy Stock Brokers Limited. Karvy has 575 offices over 375 locations across India and overseas at Dubai and New York. Karvy Realty Services. registered with NSDL and CDSL.000 active accounts. ranks among the top 5 stock brokers in India.00.
". 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. national and international agri-information is disseminated through the company's large branch network. Consequently. Seminars. Multi Commodity Exchange of India Ltd. 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.ABOUT EMKAY Emkay offers futures trading through "Emkay Corporate Services (P) Ltd. Mumbai (MCX National Commodity and Derivative Exchange. Local. 45 . We have membership with two of the major Commodity exchanges of the country. OUR MISSION To provide research driven. large numbers of informed participants enter the trading process resulting in increased volumes and market efficiency. free in house literature and interactive site sessions raise awareness levels on the futures market.
OUR VALUES To be fair. 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. 2. Mr. 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.. A partial list is provided below. 3. 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. 4. 2000. 2. 5. 1. Birla Sun life Mutual Fund Deutsche Asset Mgt (India) Pvt. The first Sensex Futures Contract was executed by Emkay on June 09. 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 . 6. Prakash Kacholia.. Director of Emkay was a member of the first Governing council on derivatives segment of BSE. 3.
some regional exchanges specializing in specific commodities. and even the retail investors. Fortunately much of the skill sets have migrated to stock exchanges. 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. needs to switch to commodity derivatives to top the list of developed nations. The hedging and price discovery functions that they perform are largely ignored today by the cross section of the population.COMMODITY FUTURES TRADING THROUGH: COMMODITY MARKET India has a deep ingrained knowledge in commodity trading (and particularly forward trading in commodities). Our endeavor is to reach to the producers. endusers. 47 . The ban has meant that two generations have lost touch with the trading skills and the related knowledge levels in the commodity space. especially in the interior heartland. primarily by the speculative segment of the universe of market participants has remained. where the bans were lifted. This has led to a mindset in the common man in the country that commodity exchanges are purely speculative in nature. In an era where risks to investments are on the rise and India being predominantly an agrarian economy. at a grassroots level. such forward (futures) trading was banned in the country for a variety of reasons and it is being revived now. Also large informal trading. In these intervening years. For last 40 years or so. have carried on the baton.
The market mediates between buyers and sellers of commodities thus making the underlying market more liquid. Like any other market. l o w ) speculators. h i g h . Historically. bonds and real estate. Commodities are easy to understand and are based on the fundamentals of demand and supply. Retail investors should understand the risks and advantages of trading in commodities futures before taking a leap. a r b i t r a g e u r s a n d$ c h a n g e . s a v v y i n v e s t o r s . 48 . the one for commodity futures plays a valuable role in information pooling and risk sharing. 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 . commodities is one of the best options. thus providing an efficient portfolio diversification option. prices in commodities futures have been less volatile compared with equity and bonds.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. For those who want to diversify their portfolios beyond shares.
Focus on customer-first-attitude. respect for professionalism. 2008 was Rs. the company showed a strong top line growth of 91% to Rs. 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).825 per share (face value Rs. the group networth was Rs. 2008. mutual funds. with just two people running the show. research-based value investing and implementation of cutting-edge technology has enabled us to blossom into an almost 2000 member team.5 per share) got a overwhelming response and was subscribed 27.Motilal Oswal Securities Ltd.68 bn. we had 486. We are headquartered in Mumbai and as of June 30. 2007.3. The company got listed on BSE and NSE on September 9. financial institutions and corporate clients.48% of its equity with two leading private equity investors based out of the US – New Vernon Private Equity Limited and Bessemer Venture Partners. 49 . ethical and transparent business practices. The issue which was priced at Rs. had a network spread over 450 cities and towns comprising 1. last year. The issue gave a return of 21% on the date of listing. For year ended March 2008. foreign institutional investors. As at June 30.7 bn and market capitalization as of March 31. In 2006. As of end of financial year 2008. asset management and fund based activities have contributed to this growth.496 Business Locations operated by our Business Partners and us.7 bn as compared to Rs.18 times in turbulent market conditions.19 bn. 2008. the Company placed 9. was founded in 1987 as a small sub-broking unit. New businesses like investment banking.648 registered customers.
the total shareholding of the Promoter and Promoter Group stood at 70. Business Partner locations. Crores Total Revenues EBIDTA PAT FY Growth 2007. Shareholding Pattern at on June 30. We also have strategic tie-ups with State Bank of India and IDBI Bank to offer our online trading platform to its customers. family and business wealth creation and management needs.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. 2008 As of 30th June.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. COMMODITY BROKING 50 . the internet and mobile channels.26%. 2008.Rs. The shareholding of institutions stood at 9. OUR BUSINESS STREAMS Our businesses and primary products and services are: WEALTH MANAGEMENT Financial planning for individual.
As at March 31. the internet and mobile channels PORTFOLIO MANAGEMENT SERVICES Motilal Oswal Portfolio Management Services offer a range of investments solutions through discretionary services. 2008. Bulls Eye PMS. insurance companies. INVESTMENT BANKING 51 . banks. our clients also get access to our exclusive Customized Trading Advice on both the trading platforms. financial institutions. We offer these services through our branches. we were empanelled with over 300 institutional clients including 191 FIIs. and FIIs.Through Motilal Oswal Commodities Broker (P) Ltd our fully owned subsidiary. As of June 30th. These include the Value PMS. Business Partner locations. Trillion Dollar Opportunity and Focused Portfolio Series I. mutual funds. 2008. the assets under management of our various portfolio schemes stood at Rs. INSTITUTIONAL EQUITIES We offer equity broking services in the cash and derivative segments to institutional clients in India and overseas. These clients include companies. 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.92 bn. We at Motilal Oswal have helped create wealth for our customers through our Portfolio Management Services. Besides access to the best of research in the form of Daily Fundamentals & Technical Reports on highly traded commodities. 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.6. we provide commodity trading facilities and related products and services on MCX and NCDEX. We service these clients through dedicated sales teams across different time zones.
PRIVATE EQUITY In 2006. 2008. The fund is aimed at providing growth capital to small and medium enterprises in India. divestitures. restructurings and spin-offs through Motilal Oswal Investment Advisors Private Ltd. The Fund has deployed/ committed $ 58 mn across 8 deals. MOVCAPL will manage and advise the fund and other private equity funds. In its final closing.We offer financial advisory services relating to mergers and acquisitions (domestic and cross-border). which may be raised in the future. FOCUS ON RESEARCH 52 .8 billion and had 18 mandates in hand as at March 31. share buybacks. 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. the fund obtained commitments of US$125 mn (Rs. open offers/delistings and syndication of debt and equity. private placements (including qualified institutional placements). our private equity subsidiary. in December 2007.875 mn) from investors in India and overseas. (MOIAPL) We also offer capital raising and other investment banking services such as the management of public offerings. PRINCIPAL STRATEGIES GROUP For effective management of treasury operations and to capitalize on market opportunities. with investments typically in the range of US$3 mn to US$7 mn. rights issues.4. India Business Excellence Fund. the Group has set up a 30 member team which would be responsible for effective deployment of funds into different trading and arbitrage strategies. Motilal Oswal Venture Capital Advisors Private Ltd (MOVCAPL) was appointed as the investment manager and advisor to a private equity fund. which was launched with a target of raising US$100 mn. MOIAPL has closed 23 transactions in 2007-08 worth US$ 1.
Mr. We believe that our management's entrepreneurial spirit. Motilal Oswal's research reports have received wide coverage in the media (over a 1000 mentions last year). leadership skills. strong technical expertise. Qualified professionals carry out different functions under the able leadership of its promoters. Managing Director. From a fundamental. Raamdeo Agrawal. At present we have 28 equity analysts researching over 27 sectors.Research is the solid foundation on which Motilal Oswal Securities advice is based. talented and confident individuals. insight into market/customer needs provide us with a competitive strength which will help us implement our business 53 . Raamdeo Agrawal. authored by 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. 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 talented pool of people comprises qualified and experienced professionals with an established track record. is now in its 13th year. Investors keenly await this annual study for the wealth of information it has on the companies that created wealth during the preceding five years. technical and derivatives research perspective. STRONG MANAGEMENT TEAM The organization finds its strength in its team of young.
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. All employees of the group guided by an experienced and professional management team are committed to providing financial care. 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’. Religare has also partnered with Vistaar Entertainment to launch India’s first Film Fund. With a view to expand. Macquarie Bank.Religare Enterprises Limited (REL). the group has also started expanding globally and has acquired London’s oldest brokerage & investment firm. diversify and introduce offerings benchmarked against global best practices. is one of the leading integrated financial services groups of India. Following this acquisition Religare now proposes to operate out of 10 countries. Hichens. the Retail. Religare has entered into joint ventures with the global major. backed by the core values of diligence and transparency. plc. Religare’s wealth management subsidiary is now rechristened as Religare Macquarie Wealth Management Limited. Harrison & Co. catering to a diverse and wide base of clients. following a joint venture with the Australia based financial services major. Institutional and Wealth spectrums. 54 . REL’s businesses are broadly clubbed across three key verticals.Aegon for its Asset Management and Life Insurance businesses in India.
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 .
Religare also has one of the largest retail networks. Aegon and BCCL for Life insurance business in India EQUITY & DERIVATIVES Trading in Equities with Religare truly empowers you for your investment needs.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. Joint Venture between REL. diligent approach Powerful Research & Analytics and One of the “best in class” dealing rooms Further. with its presence in more than 1300 locations across more than 400 towns & cities. We ensure you have a superlative trading experience through • • • A highly process driven. you can walk into any of these branches and connect to our highly skilled and dedicated relationship managers to get the best services. This means. 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 .
Selling discipline volatility. The scheme is suitable for the “Medium Risk Medium Return” investor with a strategy to invest in companies which have consistency in earnings.INVESTMENT PHILOSOPHY We believe that our investors are better served by a disciplined investment approach. Focus on minimizing investment risk by following rigorous valuation disciplines. growth and financial performance. and use of Derivatives to control Overall to enhance absolute return for investors. ELEPHANT The Elephant portfolio aims to generate steady returns over a longer period by investing in Securities selected only from BSE 100 and NSE 100 index. This plan is suitable for the “Low Risk Low Return” investor with a strategy to invest in blue chip companies. 57 . • • • • • Stock specific selection procedure based on fundamental research for making sound investment decisions. 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. Capital preservation. as these companies have steady performance and reduce liquidity risk in the market. OUR SCHEMES PANTHER The Panther portfolio aims to achieve higher returns by taking aggressive positions across sectors and market capitalizations. It is suitable for the “High Risk High Return” investor with a strategy to invest across sectors and take advantage of various market conditions.
CATERPILLAR The Caterpillar portfolio aims to achieve capital appreciation over a long period of time by investing in a diversified portfolio. who not only help in adding value but also improve the future valuation of the organization. modeling and advising on financial requirements. through offerings like Corporate Debt. 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. Its aim is to have a balanced portfolio comprising selected investments from both Tortoise and Panther. It is our continuous endeavor to provide value enhancement through diverse financial solutions on an ongoing basis. Private Equity. potential fancy for a particular sector in the coming years/months. IPO. stocks in their early stages of an upturn or for those which are in sectors currently ignored by the market. This scheme is suitable for investors with a high risk appetite. Investment Banking with Religare offers the following services: CORPORATE FINANCE We focus on finding right and relevant partners for our clients. MERCHANT BANKING • • • • IPO/FPO/RIGHTS Mergers & Acquisitions Corporate Advisory Services ADR/GDR/FCCB 58 . GDR/ADR etc. We specialize in structured financing and providing advisory services related to financial planning. ECB. This scheme is a mix of moderate and aggressive investment strategies. INVESTMENT BANKING We provide innovative. Exposure to Derivatives is taken within permissible regulatory limits. FCCB. business diversification leading to a better operating performance. integrated and best-fit solutions to our corporate customers. The investment strategy would be to invest in scrips which are poised to get a re-rating either because of change in business.
consumer secured & unsecured credit.300 million (31st December. Indiabulls through its group companies has entered Indian Real Estate business in 2005. profits of the company grew at a CAGR of 184%. Indiabulls serves the financial needs of more than 4.• BUY BACK OF SHARE ABOUT INDIABULLS Indiabulls is India’s leading Financial Services and Real Estate company having over 640 branches all over India. During the same period. 2007). Merrill Lynch. Consolidated net worth of the group is around USD 905 million (31st December. loan against shares and mortgage & housing finance. a respected US based investment firm. derivatives trading. Bombay Stock Exchange and Luxembourg Stock Exchange. It is currently evaluating several large-scale projects worth several hundred million dollars. Some of the large shareholders of Indiabulls are the largest financial institutions of the world such as Fidelity Funds.000 customers with its wide range of financial services and products from securities.50. With around 4000 Relationship Managers. Morgan Stanley and Farallon Capital. 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.” Indiabulls Financial Services Ltd 59 . research & advisory services. depositary services. Indiabulls became the first company to bring FDI in Indian Real Estate through a JV with Farallon Capital Management LLC. Business of the company has grown in leaps and bounds since its inception. Indiabulls and its group companies have attracted more than USD 800 million of equity capital in Foreign Direct Investment (FDI) since March 2000. Goldman Sachs. 2007). Revenue of the company grew at a CAGR of 159% from FY03 to FY07. The market capitalization of Indiabulls is around USD 6. “Indiabulls Financial Services Ltd is listed on the National Stock Exchange.
00 Mkt Cap (Rs Cr) 6337.05 520.65 130.50 .00 . (A) + India Infoline (A) + Indiabulls Securitie (A) + LIC Housing Fi (A) + Power Finance Co (A) + Reliance Capital (A) Close (Rs) 2.85 92. INDIABULLS FINANCIAL SERVICES LTD.238.10 326.45 44.90 543.Last traded Time Prev Close 250.45 Change Volume Day 's H/L (Rs) 18.75 68.55 (8.65 1.00 Price* Volume* MF holdings Sales Net profit margin * Computed on last 15 days' trading figures.50 HOW HOT IS THIS STOCK? 52wk H/L (Rs) 1028. VS.30 128.213. Action Compare Compare Compare Compare Compare Compare Compare Compare Compare Compare Company + HDFC (Sensex) + Bajaj Finserv Ltd.293.278.25 60 . 16:01 231.. (A) + Edelweiss Capital Lt (A) + IDFC (A) + IFCI Ltd.00 29 Aug..01%) 3300365 255.
21.59% over Rs.724 crore.699 crore. 86. As per the numbers released by the Association of Mutual Funds in India. the top three funds witnessed a rise in the AUM including ABN Canara Robeco Mutual Fund (16. the industry asset base for July 2008 stood at Rs. JP Morgan Mutual Fund (15. up from Rs.623 crore. 5. the industry’s growth in assets has been 11%.02%) and ABN AMRO Mutual Fund (14. 4.899 crore in June 2008.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.Net inflow in Mutual Fund is Rs.513.9%). 61 . On a year-on-year basis. In the month of July 2008.40. 5. an increase of 3.18. 9.36%).71 crore as of July 2007.
Corporates and Institutions and was recently ranked by Asia Money 2006 poll amongst South Asia's top 5 wealth managers for the ultrarich. web or SMS. Clients can trade through us online on BSE and NSE for both equities and derivatives. Private Clients. AR provides a breadth of financial and advisory services including wealth management. while maintaining the highest standards of excellence. ethics and professionalism. The firm. email. investment banking. sector trends and investment strategy has established us a competent and reliable research unit across the country. founded in 1994 by Mr. They are supported by dedicated sales & trading teams in our trading desks across the country. AnandRathi. 62 . with a clear focus on providing long term value addition to clients. structured products all of which are supported by powerful research teams. today has a pan India presence as well as an international presence through offices in Dubai and Bangkok. corporate advisory. brokerage & distribution of equities. Consistent delivery of high quality advice on individual stocks. commodities. The entire firm activities are divided across distinct client groups: Individuals.ABOUT US AnandRathi is a leading full service securities firm providing the entire gamut of financial services. mutual funds and insurance. 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. Research and investment ideas can be accessed by clients either through their designated dealers. The firm's philosophy is entirely client centric.
we provide our clients customized advice on hedging strategies. investment ideas and arbitrage opportunities.A whole new opportunity to hedge business risk and an attractive investment opportunity to deliver superior returns for investors . independent and unbiased advice to our clients backed by in-depth research. In addition to transaction execution. agri-commodities such as wheat. Our research covers a broad range of traded commodities including precious and base metals. 63 . picking best performing funds across asset classes and providing insights into performances of select funds. Our success lies in our philosophy of providing consistently superior. 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.MUTUAL FUNDS AR is one of India's top mutual fund distribution houses. clearing and custody of securities. We have a dedicated mutual fund research cell for mutual funds that consistently churns out superior investment ideas. DEPOSITORY SERVICES AR Depository Services provides you with a secure and convenient way for holding your securities on both CDSL and NSDL. registration of shares and dematerialization. Oils and Oilseeds. chana. Our depository services include settlement. CDSL Depository NSDL Depository COMMODITIES Commodities broking. We offer you daily updated internet access to your holding statement and transaction summary. jeera and cotton. Commodities broking is supported by a dedicated research cell that provides both technical as well as fundamental research. Our commodities broking services include online futures trading through NCDEX and MCX and depository services through CDSL. guar.
Our IPO research team provides clients with indepth overviews of forthcoming IPOs as well as investment recommendations. both within the business as well as on the personal front. we provide to our clients comprehensive risk management techniques. Risk management includes identification. 64 . Our guiding philosophy is to manage the clients' entire risk set by providing the optimal level of cover at the least possible cost. The entire sales process and product selection is research oriented and customized to the client's needs. Online filling of forms is also available. of our vast of branches a dedicated team We have been consistently ranked among the top 10 distributors of IPOs on all major offerings. measurement and assessment of the risk and handling of the risk.INSURANCE BROKING As an insurance broker. strong distribution capabilities and research the country. 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. a wide network across India. The firm deals with both life insurance and general insurance products across all insurance companies. of which insurance is an integral part. We lay strong emphasis on timely claim settlement and post sales services.
The Corporate Finance team has handled assignments in businesses like paper. tenure. building in multiple variables such as currencies. collateral etc. hospitality. defining the alternative sources of funding . textiles and sugar. in a comprehensive manner and finally negotiating with the prospective lenders / buyers. mergers and acquisition opportunities and debt financing & restructuring advisory. fixed-floating. Corporate Finance The AR Corporate Finance team helps clients manage their debtfinancing needs by profiling business and cash-flow risks. The team has also built an impressive track-record in debt restructuring based on its superior understanding of business needs and relationships with key lenders.INVESTMENT BANKING AR Investment Banking provides comprehensive services to clients including raising money in the equity capital markets to identifying strategic alliances. telecom. 65 .
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. and banking system. money and capital market. To explain stock exchange. To understand the financial. To understand the function of financial system. To review the concept and technique of price and trend analysis 66 .
• • • To asses the advantage and disadvantage of stock prediction If possible to design how stock prediction technique. To make the people move aware about market 67 .
The research methodology consisted following steps: 1.RESEARCH METHODOLOGY AND LIMITATION RESEARCH DESIGN Problem is complex and real in nature. DEFINING THE OBJECTIVES: The aim of this project as has already been mentioned was to “sales and analysis of mutual funds.” 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.
a. questionnaires that act as tools for collecting data. 3. various company broachers. Secondary data means that to get the data from the internet. company magazines. Analysis of different schemes of share market. the information is collected. talking with people and convince. Primary data tells us present scenario of financial market. from primary and secondary data. 2. 1. DEVELOPING THE RESEARCH PLAN: This step called for decision on the data sources. sampling plan and contact methods. ii. The PRIMARY DATA This type of data does not exist. SECONDARY DATA This type of data already exists. SAMPLING METHOD: 69 . it is originated by primary sources like personal interaction or field back forms. and used to generate information as required. We collect the secondary data through Internet. To sale the products we have to first generate database on the basis of marketing research. DATA COLLECTION: Base on the above questionnaire data are collected by survey methods. RESEARCH APPROACH The research approach adopted here was the survey method. journals and magazines of the company. But other approaches also used such as observation research. DATA SOURCES Data was collected various sources are: i. b. books. COLLECTING THE INFORMATION With respect to primary and secondary data. talking with people.
STUDY The present investigation is a descriptive and marketing type of study undertaken to estimate the comparative study of share market analysis. 70 . The Analysis of survey has been done on % basis. SECONDARY DATA The secondary data was collected by referring through web sites. DATA COLLECTION PRIMARY DATA The primary data to be selected was based upon the response of the respondents to the questionnaire designed. A part of Questionnaire was targeted to know the personal details of the respondents. The sampling method.. The questionnaire designed was given to us from our immediate boss. which is adopted. All the views and data obtained were also interpreted as clearly as possible. Another part comprised of the selfdesigned questionnaire and will consist of closed ended questions with every question having its own importance and meaning. 2.. The questionnaire consists of closed ended questions. DATA ANALYSIS: 3. DATA ANALYSIS For analyzing the data obtained after conducting the survey. is Random Sampling. and the final data was analyzed systematically to achieve the desired result. The present study identifies views of customers & analysis of share market along with the selfanalysis. percentage method was used.
COMPARATIVE ANALYSIS AND INTERPRETATIONS ANALYSIS OF MALES AND FEMALES SURVEYED: 71 . The target group of the respondent was job holders and an earning person whatever his/her age may be. This procedure gives each item an equal probability of being selected. The sample size taken was 60. 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. SAMPLING METHOD The sampling method chosen for the project was “Random Sampling”. SAMPLE SIZE For the purpose of analysis a sample size of respondents was selected.
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. it was found that out of customers were males and was females.like undergone earlier to there improve was the only predication techniques 72 . lot of efforts have been . Thus. LIMITATION OF STUDY 1.
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?
Higher Leverage: Get high exposures for the margin provided 4. Mumbai (MCX B. Prices are pegged to international markets of NYMEX. EXIM Policies like tariff rates. National Multi Commodity Exchange. Hedgers 2. What are the major commodity exchanges A. Who regulates the commodity exchanges? Just as SEBI regulates the stock exchanges. commodity exchanges are regulated by the Forwards Market Commission (FMC). thereby increasing lucrative-ness of investment in precious metals 5. at a guaranteed price Speculator: Speculators are participants who wish to bet on future movements in the price of an asset. Agriculture and Public Distribution 7. consumption and carry-over quantity of stocks Economic policies and conditions Interest Rates .g. No counter party risks 3. Individuals. C. Who are the players in the Commodity Market ANS: Hedgers: Hedgers enter into commodity contracts to be assured access to a commodity. which comes under the purview of the Ministry of Food. minimum support prices Annual production.g.e. CME. hike in federal rates bring down the dollar. or the ability to sell it. Multi-Commodity Exchange of India Ltd. National Commodity Mumbai (NCDEX and Derivatives Exchange of India. 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.e. LME etc 4. Ahemdabad (NMCE 76 . CBOT. How do commodity prices move? Natural Factors: Soil and climatic conditions.ANS: 1. natural calamities etc Government Policies .
com www. Therefore it's relatively safer to trade in commodities.com 77 .com www. What are the commodity derivatives market timings? The commodity derivatives timings are: NCDEX & MCX Monday to Friday: 10 am to 11.4 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.com www.religare. 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. However all investments are subject to market risk and depend on the individual’s decision 10. Also the regulatory authorities ensure through continuous vigil that the commodity prices are marketdriven and free from manipulations. only Saturday: 10 am to 2 pm 9. which are not intended for delivery.com www. are settled in cash BIBLIOGRAPHY Websites: www. What are the charges involved in trading on the exchanges Brokerage Service Tax Transaction Charges: Rs.com www.karvay.30 pm (Agri-commodities up to 5 p.sharekhan.wikipedia.8.com Indiainfoline.google.m.indiabulls.
magazines& newspaper Business times Research methodology(c.Books.s kothari) Economic times Financial management (paresh shah) 78 .
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