A RESEARCH STUDY PROJECT REPORT ON SHARE MARKET & FINANCIAL SYSTEM

[ SH ARE K H AN LI M I TED]

IS SUBMITTED BY

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

TOWARDS

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

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

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

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

ANIL KUMAR THAKUR

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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. Research objective Statement of problem Objective of the research project 4. individual investors. and financial risk Function of stock exchange Service of stock exchange 2. Research methodology objective and limitation Problem definition Justification of study Objective of study Research design 4 .CONTENTS 1. 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.

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

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

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

[1] TRADING Participants in the stock market range from small individual stock investors to large hedge fund traders. a sale takes place on a first come first served basis if there are multiple bidders or askers at a given price. Once a trade has been made the details are reported on the "tape" and sent back to the brokerage firm. to facilitate the exchange of sellers. (Buying or selling at market means you will accept any ask price or bid price for the stock. Orders enter by way of exchange members and flow down to a specialist. The specialist's job is to match buy and sell orders using open outcry. who executes the order. Although there is a significant amount of human contact in this process. China (Hong Kong). 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. Canada.economies. UK. The purpose of a stock exchange is securities between buyers and marketplace (virtual or real). France and Japan. Germany. However. where all trading is done over a computer network. If a spread exists. respectively. 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. The NASDAQ is a virtual listed exchange. buyers and are electronically matched. composed of a network of computers where trades are made electronically via traders. One or more NASDAQ market of the similar sellers makers 8 . The trading information on the listed discovery. especially for so-called "program trading". The process is to the New York Stock Exchange. which then notifies the investor who placed the order. with the world's biggest markets being in the United States. who can be based anywhere. who goes to the floor trading post to trade stock. also referred to as a listed exchange — only stocks listed with the exchange may be traded. Some exchanges are physical locations where transactions are carried out on a trading floor. facilitating price The New York Stock Exchange is a physical exchange. India. This type of auction is used in stock exchanges and commodity exchanges where traders may enter "verbal" bids and offers simultaneously. Their orders usually end up with a professional at a stock exchange. thus providing a exchanges provide real-time securities. by a method known as open outcry. The other type of exchange is a virtual kind. computers play an important role.) When the bid and ask prices match.

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

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

(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. This event demonstrated that share prices can fall dramatically even though. such as profits or dividends. (Something like seeing familiar shapes in clouds or ink blots. and the use of certain strategies. It also seems to be the case more generally that many price movements are not occasioned by new information. some research has shown that changes in estimated risk. and often will perceive a pattern in what is. having priced in all public knowledge. According to the efficient market hypothesis (EMH). while the EMH predicts that all price movement (in the absence of change in fundamental information) is random (i.e.[3] Moreover. Other research has shown that psychological factors may result in exaggerated stock price movements. 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. just noise. theoretically could cause financial markets to overreact. New theoretical and empirical arguments have been put forward against the notion that financial markets are efficient. to this day. 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. ought to affect share prices.) But the efficient-market hypothesis is sorely tested by such events as the stock market crash in 1987. For instance. Overreactions may occur—so that excessive optimism (euphoria) may drive prices unduly high or excessive pessimism may drive prices unduly low. Psychological research has demonstrated that people are predisposed to 'seeing' patterns. in fact. such as stop-loss limits and Value at Risk limits.6 percent—the largest-ever one-day fall in the United States.THE BEHAVIOR OF THE STOCK MARKET From experience we know that investors may temporarily pull financial prices away from their long term trend level.) 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). many studies have shown a marked tendency for the stock market to trend over time periods of weeks or longer. A 11 . when the Dow Jones index plummeted 22. only changes in fundamental factors. non-trending).

79 trillion.[1] It is located at Dalal Street. the equity market capitalization of the companies listed on the BSE was US$ 1.[4]. In times of market stress.000 listed companies as of August 2007.[5] In normal times the market behaves like a game of roulette. On 31 December 2007. Over the short-term. reducing his (psychological) risk threshold. with reports of rapidly rising share prices and the notion that large sums of money could be quickly earned in the so-called new economy stock market.000 Indian companies list on the stock exchange. popularly called The Bombay Stock Exchange. India. The BSE SENSEX (SENSitive 12 . making the stock market difficult to predict. the average did not rise above 5%). The Stock Exchange. is quite unforgiving of amateurs. so that by summer of 2002. Around 6. as any other business. Bombay Stock Exchange T h e B o m b a y S t o c k E x c h a n g e L i m i t e d ( H i n d i : म ुं ब ई श े य र ब ा ज ा र Mumbaī Śeyar Bājār) (formerly.[3] and it has a significant trading volume.2002 crash. euphoria and mass panic. rumors. however. less than 1 per cent of the analyst's recommendations had been to sell (and even during the 2000 . the stock market can be swayed tremendously in either direction by press releases. the game becomes more like poker (herding behavior takes over). making it the largest stock exchange in South Asia and the tenth largest in the world. Inexperienced investors rarely get the assistance and support they need. or BSE) is the oldest stock exchange in Asia. Mumbai. The media amplified the general euphoria. Mumbai.[2] The Bombay Stock Exchange was established in 1875.2002 crash. It is also the biggest stock exchange in the world in terms of listed companies with 6. The players now must give heavy weight to the psychology of other investors and how they are likely to react psychologically. Therefore. the probabilities are known and largely independent of the investment decisions of the different players.period of good returns also boosts the investor's confidence. (And later amplified the gloom which descended during the 2000 . predictions of a DOW average below 5000 were quite common. The stock market. In the period running up to the recent Nasdaq crash. IRRATIONAL BEHAVIOR Sometimes the market tends to react irrationally to economic news. stocks and other securities can be battered or buoyed by any number of fast market-changing events. self- In one paper the authors draw an analogy with gambling. even if that news has no real effect on the technical value of securities itself.

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. Though many other exchanges exist. The set of companies which make up the index has been changed only a few times in the last twenty years. also called the "BSE 30". with the base April 1979 = 100. These companies account for around one-fifth of the market capitalization of the BSE.indEX). is a widely used market index in India and Asia. 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 . Apart from BSE SENSEX. which is the most popular stock index in India.

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

001 points during mid-session at the Bombay Stock Exchange for the first time. 1992 On January 15.000-mark as the BJP-led coalition won the majority in the 13th Lok Sabha election. 1999 On October 8. 2005 crossed the magical figure of 9000 to touch 9000. However. The Sensex finally closed above the 10K-mark on February 7. 8000. 5000. 2005 On June 20.2000. 1992.000. 3000. 1992. 2006. March 21. October 8. 2006 that the Sensex first closed at over 11. 7000.000. November 28.000-mark and closed at 4.000 and touched a life-time peak of 11. 2005. It was then that the Harshad Mehta scam hit the markets and Sensex witnessed unabated selling.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. and IPCL made huge gains. Dr Manmohan Singh. 1992. February 6. it was on March 27. the news of the settlement between the Ambani brothers boosted investor sentiments and the scrips of RIL. Reliance Energy. 2006 The Sensex on February 6. the Sensex crossed the 2. June 20. January 15. the Sensex crossed the 5. 2005 The Sensex on November 28. This helped the Sensex crossed 7.the Sensex -level following brisk buying by foreign and early trading. 2006 crossed the magical figure of 11. 15 . September Stock Exchange's crossed the 8000 domestic funds in 8. 1992 On March 30.000-mark and closed at 2. the Sensex crossed the 4. 6000. 1992 On February 29. 10.006. 9000.000 points.091 on the expectations of a liberal export-import policy.003 points during mid-session. 2000. 11. 2005 On September 8. 2000 On February 11. the Sensex surged past the 3000 mark in the wake of the market-friendly Budget announced by the then Finance Minister.000 points for the first time. 4000.000-mark and hit and all time high of 6. 1999. the infotech boom helped the Sensex to cross the 6. March 30. Reliance Capital.020 followed by the liberal economic policy initiatives undertaken by the then finance minister and current Prime Minister Dr Manmohan Singh. the Bombay benchmark 30-share index -. February 11. 2006 The Sensex on March 21. February 29. 2006 touched 10. 2005.

000. saw the index slip into red to 16.000-mark and closed at a peak of 12.45 points or 0.000mark on October 09. December 5. capital goods and refinery sectors. The Sensex ended with a gain of 22 points at 16.921.000 to 13. It took 36 days for the Sensex to move from 13. up 117.000-mark backed by revival of funds-based buying in blue chip stocks in metal.000.040 points for the first time. 2007 The Sensex scaled yet another height during early morning trade on September 26. Within minutes after trading began. The Sensex finally ended with a gain of 654 points at 16. 2007. 2006 crossed the 12.732.000 points from the 17.000 and 123 days to move from 12. It took 135 days for the Sensex to move from 12. 2006 crossed the 14.000-mark to touch 14. 17. September 26. September 19. It took seven months for the Sensex to move from 14.000. The index zoomed to a new alltime intra-day high of 18.000 mark.000 from 15. the Sensex crossed the 17.000 to the 14. The index gained the 16 . up 113 points. 2006 crossed the magical figure of 13.9%.887 . 2006 The Sensex on October 30. 16. 2007. 19. 2007 crossed the magical figure of 15.280.323.000 to 15. 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.000 to touch 15.000. April 20.000 points.000.024.028 points. July 6. October 15. The market set several new records including the biggest single day gain of 789 points at close. 2007 The Sensex on July 6. 2007 The Sensex scaled yet another milestone during early morning trade on September 19.000. rising by 450 points from the previous close.000.down 187 points from the day's high. 2006 The Sensex on December 5.500 to 13.000. 13.000. 14. It took just 8 days to cross 18.000. Nifty also touched a new high at 4659. October 09. 18. Within minutes after trading began. Some profit taking towards the end.327. 15.12. the Sensex crossed 16. 2007 The Sensex crossed the 19. 2007 The BSE Sensex crossed the 18. 2007.000 mark.26 points. The 30-share Bombay Stock Exchange's sensitive index took 53 days to reach 16.000-mark .005 points in afternoon trade.000. 2006 The Sensex on April 20. It finally gained 789 points to close at an all-time high of 18.000 and closed at 13. The NSE Nifty gained 186 points to close at 4. October 30.

000 points in just four trading days.last 1.822. 2008 The sensex crossed the 21.220.000. Six months ago. October 29.000.70 on July 2nd. a gain of 734. 12. The major drivers of today's rally were index Heavyweights Larsen and Toubro. The index touched a fresh all-time intra-day high of 19. HDFC Bank and SBI among others. Reliance Industries.096.67.50 points before ending at 5.50 points. 2008. 2008 The sensex touched an intra day low of 13. Indian market suffer with major downfall from January 21. However. 20.000-mark on October 15. 2008.922.220 amidst a negative sentiment generated on the Reserve Bank of India hiking CRR by 50 bps. The NSE Nifty rose to a record high 5.000 points after the index crossed the 19. January 8. 15. although Reliance and Infosys continue to lead the way with mostly positive results. This is the lowest that it has ever been in the past year.731 during the early trades.059.000 mark on the back of aggressive buying by funds ahead of the US Federal Reserve meeting. 2008 The sensex hit an intra day low of 12.60 points. and finally ended with a smart gain of 640 points at 19.000 mark in intra-day trading after 49 trading sessions. it later fell back due to profit booking. This was backed by high market confidence of increased FII investment and strong corporate results for the third quarter. then pulled back and ended up at 14. The index took only 10 trading days to gain 1.670. June 13.The Nifty gained 242 points to close at 5.87 points before ending at its fresh closing high of 19. ICICI Bank.70. FII outflow continued in this week.90.905. showing a hefty gain of 203.200.024. 21. 2008 The sensex closed below 15.200 mark. the market had hit an all time high of 21206. closely followed by ICICI Bank and ITC Ltd 17 . 2007 The Sensex crossed the 20.822. The 30-share index spurted in the last five minutes of trade to fly-past the crucial level and scaled a new intra-day peak at 20. This is a bad time for the Indian markets.977. July 2. Bloomberg lists them as the top two gainers for the Sensex. June 25. on January 10th.2008 14.

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

19 . In April 1993.46 trillion. and its pioneering efforts include: • • Being the first national." in India.6%. anonymous. NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994.NSE is mutually-owned by a set of leading financial institutions. derivatives market) trades in India. [[Image:National Stock exchange Kolkata. banks. INNOVATIONS NSE has remained in the forefront of modernization of India's capital and financial markets. while operations in the Derivatives segment commenced in June 2000. the NSE VSAT terminals. As of 2006. it was recognized as a stock exchange under the Securities Contracts (Regulation) Act. the equity market capitalization of the companies listed on the NSE was US$ 1. 1956. existent market and new market structures have followed the "NSE" model. NSE is the third largest Stock Exchange in the world in terms of the number of trades in equities. making it the second largest stock exchange in South Asia. Since the success of the NSE. 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.[4]It is the second fastest growing stock exchange in the world with a recorded growth of 16. In October 2007. The Capital Market (Equities) segment of the NSE commenced operations in November 1994. 2799 in total. electronic limit order book (LOB) exchange to trade securities in India. and was incorporated in November 1992 as a tax-paying company. cover more than 1500 cities across India [3]. NSCCL was a landmark in providing innovation on all spot equity market (and later. insurance companies and other financial intermediaries in India but its ownership and management operate as separate entities[2]. Setting up the first clearing corporation "National Securities Clearing Corporation Ltd.

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

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

Buying a futures contract in anticipation of price increases is known as ‘going long’. Selling a futures contract in anticipation of a price decrease is known as ‘going short’. but a performance bond. They handle trades for their personal clients or brokerage firms. to change more quickly than real estate or stock prices. 22 • . Hedgers are often businesses. They will just buy from one end and sell it to the other in anticipation of future price movements. 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. The trader puts up a small fraction of the value of the underlying contract as margin. or individuals. the futures position will profit if the price of the produce rise enough to offset cash loss on the produce. hedgers use futures for protection against adverse future price movements in the underlying cash commodity. The actual value of the contract is only exchanged on those rare occasions when delivery takes place. Speculative participation in futures trading has increased with the availability of alternative methods of participation.In general. who at one point or another deal in the underlying cash commodity. Take an example: A Hedger pay more to the farmer or dealer of a produce if its prices go up. yet he can ride on the full value of the contract as it moves up and down. These participants include independent floor traders and investors. on average. he can make more money in the futures market faster because prices tend. SPECULATORS: Speculators are some what like a middle man. They actually bet on the future movement in the price of an asset. Futures are highly leveraged investments. he hedge the risk exposure by buying enough future contracts of the produce to cover the amount of produce he expects to buy. They are never interested in actual owing the commodity. They are the second major group of futures players. For protection against higher prices of the produce. Since cash and futures prices do tend to move in tandem.

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

3: PAYMENT FUNCTION: The financial system offers a very convenient mode of payment for goods and services. The funds in the hands of the producers result in production of better goods and services. etc.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 credit card system 24 . 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. but its value is almost eroded by inflations.in India . which promise future income flows. However the growth of the investment and living standard begins to fall 2: LIQUIDITY FUNCTIONS: Of all financial instruments. debentures. bonds. The financial markets provide the investor the opportunity to liquidate the investments. money is the form of deposits offers the least risk.the cost and time for transaction are drastically reduced .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 cheque system and credit card system are the easiest methods of payment in the economy . increasing society’s standard of living when saving flows decline. Financial claims are issued in the money and capital markets.

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

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

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

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

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

Commission. Stock exchange also helps the public sector undertaking and the government in raising long term loans. STOCK EXCHANGE Stock exchange is an organized market for industrial. where existing securities are traded. selling and dealing in securities.  It is privately owned by individuals.  It operates as per well defined rules and regulation. In brief. financial and government securities. where new issues are distributed to investors. The capital markets consist of the primary market. oversee the capital markets in their designated countries to ensure that investors are protected against fraud. and the secondary market.  It is a recognized association and is controlled by the state under a special act. a stock market or stock exchange is a place where stocks and shares and other term securities are bought and sold as per certain rules and regulations. financial and government market for industrial. 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 . FEATURES  It is an organized market for buying.  It facilitates marketing in securities and also controls the trading activities.

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

g. hedge funds. etc. insurance investment of premiums. In all developed economic systems. the United States. pension funds.A stock exchange does not deal in the securities of all the companies . either directly or through mutual funds. 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. One feature of this development is disintermediation. in Sweden. has been an important component of this process. 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. mutual funds. compared to less than 20 per cent in the 2000s. deposit accounts and other very liquid assets with little risk made up almost 60 per cent of households' financial wealth.it selects certain securities for transaction.. In the 1970s. Japan and other developed nations. Statistics show that in recent decades shares have made up an increasingly large proportion of households' financial assets in many countries. The general public's heightened interest in investing in the stock market. permitting a higher proportion of shares to bonds. Similar tendencies are to be found in other industrialized countries. such securities are called listed securities. The trend towards forms of saving with a higher risk has been accentuated by new rules for most funds and insurance. e. 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 . such as the European Union.

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

and $105. 34 . Over the years he has built himself a multi-billion-dollar fortune.[2] Buffett began his career with $100. 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.000 from seven limited partners consisting of Buffett's family and friends.This is a quote from the preface to a published biography about the long-term value-oriented stock investor Warren Buffett.

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.

service limited . The portfolio management service provides top class service catering to the high end of the market.. 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. 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.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.sharekhan.providing dual benefits services where in the investor can use the brokerage services of the company for executing the transactions and the depository service for settling them. 36 .com was launched in 2000 . with the backing of an expert. Kotak securities have 813 outlets servicing more than 315000 customers and a coverage of 277 cities. Sharekhan. in the investment advisors category Share khan equity related services include trade execution on BSE.sharekhan online trading and investment site www.

Mutual funds. Share Khan commissioned its shares and equities at Satara Road. as part of India largest consumer study cover 7000 respondents 21 product and service across 21 major cities. this is one of the branches in the Pune. a flagship broking firm in the share market. Share. Established in 1958. which types more earn money in the through the share market. This is only Share and Equity broking firm in India. equity driving Tactical measures such as promotional /pricing schemes ABOUT THE COMPANY Share Khan Limited. is structured into strategic businesses —Equities. Share khan give to more information how to invest in the share market. The reason behind the preferences for brands were unveiled by examines the following: • • • Tangible features of product /service Softer. intangible preference features like imagery. Sharekhan won the award by vote of customer around the country. 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.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 . The head office of Share Khan is in the Mumbai. This is not only Share but bulk of the commodities.

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

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

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

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

com/ The company has a network of 758 business locations (branches and sub-brokers) spread across 346 cities and towns.5paisa. straddle the entire financial services space with offerings ranging from Equity research. India Infoline Limited and its wholly-owned subsidiaries. Portfolio Management Services. viz. Mumbai (BSE) and the National Stock Exchange (NSE) and is also a member of both the exchanges. the Stock Exchange. It has recently launched its Investment banking and Institutional Broking business. providing a one-stop solution for clients trading in the equities market. comprising the holding company.The India Infoline group. Fixed deposits.indiainfoline. It is registered with NSDL as well as CDSL as a depository participant.000 customers India Infoline Limited is listed on both the leading stock exchanges in India. Mutual Funds. It offers broking services in the Cash and Derivatives segments of the NSE as well as the Cash segment of the BSE. India Infoline also owns and manages the websites http://www.com/and http://www. Commodities trading. Wealth Advisory Services and Portfolio Management Services. It has more than 800. It is engaged in the businesses of Equities broking. Life Insurance. GoI bonds and other small savings instruments to loan products and Investment banking. 42 . Equities and derivatives trading.

Bombay Stock Exchange (BSE) and dealer with Over the Counter Exchange of India (OTCEI) we handle your trading needs. Bonanza confidently steers you through a challenging Financial and Trade Market every moment. 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. through a network of experienced dealers across the country. and through our comprehensive website. whether you are present or not! EQUITY Being a member of the National Stock Exchange (NSE). Integrated and innovative use of Technology enabling clients to trade offline. Key elements that place Bonanza amongst the leading Brokerage Houses and make it the preferred service provider for value based financial services are: • • • A Client-driven foundation and strategy committed to client-specific investment needs and objectives.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 . 43 .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.

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

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

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 . Birla Sun life Mutual Fund Deutsche Asset Mgt (India) Pvt. 4. 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. 6.OUR VALUES To be fair. To always earn and be worthy of our customer's trust THE JOURNEY Emkay’s institutional clientele includes some of the largest players in the Fund Management business. Mr. 2. 1. 3.. 2000. 5. 3.. 2. A partial list is provided below. Prakash Kacholia. 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. Director of Emkay was a member of the first Governing council on derivatives segment of BSE.

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

prices in commodities futures have been less volatile compared with equity and bonds. The market mediates between buyers and sellers of commodities thus making the underlying market more liquid. 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 . thus providing an efficient portfolio diversification option. h i g h . Commodities are easy to understand and are based on the fundamentals of demand and supply. 48 . s a v v y i n v e s t o r s . Historically. a r b i t r a g e u r s a n d$ c h a n g e . the one for commodity futures plays a valuable role in information pooling and risk sharing.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. Retail investors should understand the risks and advantages of trading in commodities futures before taking a leap. bonds and real estate. commodities is one of the best options. l o w ) speculators. For those who want to diversify their portfolios beyond shares. Like any other market.

ethical and transparent business practices. As at June 30.7 bn as compared to Rs. research-based value investing and implementation of cutting-edge technology has enabled us to blossom into an almost 2000 member team. The company got listed on BSE and NSE on September 9. 2008. had a network spread over 450 cities and towns comprising 1. 49 . the company showed a strong top line growth of 91% to Rs. mutual funds. last year.48% of its equity with two leading private equity investors based out of the US – New Vernon Private Equity Limited and Bessemer Venture Partners. was founded in 1987 as a small sub-broking unit. New businesses like investment banking. We are headquartered in Mumbai and as of June 30.18 times in turbulent market conditions. 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). asset management and fund based activities have contributed to this growth. 2008 was Rs.648 registered customers. 2008.5 per share) got a overwhelming response and was subscribed 27. the Company placed 9.825 per share (face value Rs. respect for professionalism. 2007.3.68 bn. we had 486. For year ended March 2008. Focus on customer-first-attitude. financial institutions and corporate clients.Motilal Oswal Securities Ltd. In 2006.496 Business Locations operated by our Business Partners and us. foreign institutional investors.19 bn. The issue gave a return of 21% on the date of listing. As of end of financial year 2008. The issue which was priced at Rs.7 bn and market capitalization as of March 31. the group networth was Rs. with just two people running the show.

family and business wealth creation and management needs.26%. the total shareholding of the Promoter and Promoter Group stood at 70. 2008. The shareholding of institutions stood at 9. We also have strategic tie-ups with State Bank of India and IDBI Bank to offer our online trading platform to its customers. 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.37%. 2008 As of 30th June. Crores Total Revenues EBIDTA PAT FY Growth 2007. the internet and mobile channels. OUR BUSINESS STREAMS Our businesses and primary products and services are: WEALTH MANAGEMENT Financial planning for individual. COMMODITY BROKING 50 . Business Partner locations.78% and non-institutions at 12. Shareholding Pattern at on June 30.08 (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.Rs.

we provide commodity trading facilities and related products and services on MCX and NCDEX. Business Partner locations. 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. These include the Value PMS. 2008. As of June 30th. financial institutions.6. 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. our clients also get access to our exclusive Customized Trading Advice on both the trading platforms. 2008. and FIIs. banks. the internet and mobile channels PORTFOLIO MANAGEMENT SERVICES Motilal Oswal Portfolio Management Services offer a range of investments solutions through discretionary services. we were empanelled with over 300 institutional clients including 191 FIIs. insurance companies. Trillion Dollar Opportunity and Focused Portfolio Series I. We at Motilal Oswal have helped create wealth for our customers through our Portfolio Management Services. INSTITUTIONAL EQUITIES We offer equity broking services in the cash and derivative segments to institutional clients in India and overseas.Through Motilal Oswal Commodities Broker (P) Ltd our fully owned subsidiary. mutual funds. Bulls Eye PMS.92 bn. These clients include companies. As at March 31. We offer these services through our branches. the assets under management of our various portfolio schemes stood at Rs. Besides access to the best of research in the form of Daily Fundamentals & Technical Reports on highly traded commodities. INVESTMENT BANKING 51 . We service these clients through dedicated sales teams across different time zones.

4.875 mn) from investors in India and overseas. restructurings and spin-offs through Motilal Oswal Investment Advisors Private Ltd. in December 2007.8 billion and had 18 mandates in hand as at March 31. The fund is aimed at providing growth capital to small and medium enterprises in India. In its final closing. which was launched with a target of raising US$100 mn. The Fund has deployed/ committed $ 58 mn across 8 deals. the Group has set up a 30 member team which would be responsible for effective deployment of funds into different trading and arbitrage strategies. open offers/delistings and syndication of debt and equity. (MOIAPL) We also offer capital raising and other investment banking services such as the management of public offerings.We offer financial advisory services relating to mergers and acquisitions (domestic and cross-border). divestitures. Motilal Oswal Venture Capital Advisors Private Ltd (MOVCAPL) was appointed as the investment manager and advisor to a private equity fund. 2008. PRINCIPAL STRATEGIES GROUP For effective management of treasury operations and to capitalize on market opportunities. India Business Excellence Fund. 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. our private equity subsidiary. MOIAPL has closed 23 transactions in 2007-08 worth US$ 1. share buybacks. PRIVATE EQUITY In 2006. private placements (including qualified institutional placements). rights issues. MOVCAPL will manage and advise the fund and other private equity funds. FOCUS ON RESEARCH 52 . which may be raised in the future. the fund obtained commitments of US$125 mn (Rs. with investments typically in the range of US$3 mn to US$7 mn.

Motilal Oswal and Mr. Raamdeo Agrawal. Motilal Oswal's research reports have received wide coverage in the media (over a 1000 mentions last year). technical and derivatives research perspective. strong technical expertise. We believe that our management's entrepreneurial spirit. 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. Managing Director. Investors keenly await this annual study for the wealth of information it has on the companies that created wealth during the preceding five years. 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.Research is the solid foundation on which Motilal Oswal Securities advice is based. leadership skills. is now in its 13th year. At present we have 28 equity analysts researching over 27 sectors. Our talented pool of people comprises qualified and experienced professionals with an established track record. Almost 10% of revenue is invested on equity research and we hire and train the best resources to become advisors. STRONG MANAGEMENT TEAM The organization finds its strength in its team of young. authored by Mr. From a fundamental. Qualified professionals carry out different functions under the able leadership of its promoters. Mr.

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

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 .

Joint Venture between REL.Religare Macquarie Wealth Management Limited • 50: 50 joint ventures management business with Macquarie for wealth Religare AEGON AMC • - 50:50 Joint Venture between REL and Aegon for Asset Management business in India AEGON Religare Life Insurance • • Life Insurance Company. 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. Aegon and BCCL for Life insurance business in India EQUITY & DERIVATIVES Trading in Equities with Religare truly empowers you for your investment needs. Religare also has one of the largest retail networks. 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. 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 . We ensure you have a superlative trading experience through • • • A highly process driven.

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

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

• BUY BACK OF SHARE ABOUT INDIABULLS Indiabulls is India’s leading Financial Services and Real Estate company having over 640 branches all over India. a respected US based investment firm. Business of the company has grown in leaps and bounds since its inception. Indiabulls became the first company to bring FDI in Indian Real Estate through a JV with Farallon Capital Management LLC. Bombay Stock Exchange and Luxembourg Stock Exchange. Goldman Sachs. profits of the company grew at a CAGR of 184%.300 million (31st December. Merrill Lynch.50. loan against shares and mortgage & housing finance. Some of the large shareholders of Indiabulls are the largest financial institutions of the world such as Fidelity Funds. 2007). depositary services. Indiabulls through its group companies has entered Indian Real Estate business in 2005. research & advisory services. With around 4000 Relationship Managers. It is currently evaluating several large-scale projects worth several hundred million dollars. Indiabulls has demonstrated deep understanding and commitment to Indian Real Estate market by winning competitive bids for landmark properties in Mumbai and Delhi. “Indiabulls Financial Services Ltd is listed on the National Stock Exchange.” Indiabulls Financial Services Ltd 59 . 2007). consumer secured & unsecured credit. Morgan Stanley and Farallon Capital. Consolidated net worth of the group is around USD 905 million (31st December. The market capitalization of Indiabulls is around USD 6. Indiabulls and its group companies have attracted more than USD 800 million of equity capital in Foreign Direct Investment (FDI) since March 2000. Revenue of the company grew at a CAGR of 159% from FY03 to FY07. Indiabulls helps its clients to satisfy their customized financial goals. derivatives trading. Indiabulls serves the financial needs of more than 4.000 customers with its wide range of financial services and products from securities. During the same period.

Action Compare Compare Compare Compare Compare Compare Compare Compare Compare Compare Company + HDFC (Sensex) + Bajaj Finserv Ltd.75 68.85 92.50 HOW HOT IS THIS STOCK? 52wk H/L (Rs) 1028.90 543.00 Price* Volume* MF holdings Sales Net profit margin * Computed on last 15 days' trading figures.25 60 .01%) 3300365 255..65 1..00 Mkt Cap (Rs Cr) 6337.05 520. INDIABULLS FINANCIAL SERVICES LTD.00 .213.278. VS.00 29 Aug.45 Change Volume Day 's H/L (Rs) 18.293.10 326.30 128. 16:01 231.65 130.Last traded Time Prev Close 250.45 44.55 (8. (A) + India Infoline (A) + Indiabulls Securitie (A) + LIC Housing Fi (A) + Power Finance Co (A) + Reliance Capital (A) Close (Rs) 2.238.50 . (A) + Edelweiss Capital Lt (A) + IDFC (A) + IFCI Ltd.

In the month of July 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.36%). up from Rs. the industry’s growth in assets has been 11%.71 crore as of July 2007. the industry asset base for July 2008 stood at Rs.18.699 crore.513. As per the numbers released by the Association of Mutual Funds in India.899 crore in June 2008.40. 86. an increase of 3.623 crore.724 crore.21. the top three funds witnessed a rise in the AUM including ABN Canara Robeco Mutual Fund (16. On a year-on-year basis. 4. 61 . JP Morgan Mutual Fund (15.02%) and ABN AMRO Mutual Fund (14. 5.Net inflow in Mutual Fund is Rs. 9. 5.59% over Rs.9%).

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

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

Our IPO research team provides clients with indepth overviews of forthcoming IPOs as well as investment recommendations. Risk management includes identification. of which insurance is an integral part. 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. Our guiding philosophy is to manage the clients' entire risk set by providing the optimal level of cover at the least possible cost. both within the business as well as on the personal front. strong distribution capabilities and research the country. 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. We lay strong emphasis on timely claim settlement and post sales services. 64 . measurement and assessment of the risk and handling of the risk. The firm deals with both life insurance and general insurance products across all insurance companies. a wide network across India. we provide to our clients comprehensive risk management techniques.INSURANCE BROKING As an insurance broker. The entire sales process and product selection is research oriented and customized to the client's needs.

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

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

• • • 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 .

DEFINING THE OBJECTIVES: The aim of this project as has already been mentioned was to “sales and analysis of mutual funds. The research methodology consisted following steps: 1. 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.RESEARCH METHODOLOGY AND LIMITATION RESEARCH DESIGN Problem is complex and real in nature.” For this our research contains two parts68 .

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

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

COMPARATIVE ANALYSIS AND INTERPRETATIONS ANALYSIS OF MALES AND FEMALES SURVEYED: 71 . SAMPLE SIZE For the purpose of analysis a sample size of respondents was selected. This procedure gives each item an equal probability of being selected. The target group of the respondent was job holders and an earning person whatever his/her age may be. 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”.

LIMITATION OF STUDY 1.27% 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. we came to know that 73% of the users were males and the remaining 27% were females. lot of efforts have been .like undergone earlier to there improve was the only predication techniques 72 . Thus.

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

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

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

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

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

3. Why Trade in Commodity Exchanges?
75

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

google.m. Therefore it's relatively safer to trade in commodities.com www.30 pm (Agri-commodities up to 5 p.wikipedia. 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. only Saturday: 10 am to 2 pm 9. which are not intended for delivery.karvay.com www. However all investments are subject to market risk and depend on the individual’s decision 10.8.religare.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.sharekhan.com  Indiainfoline. are settled in cash BIBLIOGRAPHY Websites: www.com www.com       77 .indiabulls. What are the charges involved in trading on the exchanges Brokerage Service Tax Transaction Charges: Rs.com www. What are the commodity derivatives market timings? The commodity derivatives timings are: NCDEX & MCX Monday to Friday: 10 am to 11. Also the regulatory authorities ensure through continuous vigil that the commodity prices are marketdriven and free from manipulations.

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

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