FINANCIAL SERVICES INDUSTRY

Until the 1970s, the financial services industry consisted of a few well-defined and separate
industries that dealt in money. These included banks and savings and loan associations for
personal savings, checking accounts, and mortgages; brokerage houses, such as Merrill
Lynch, for investment in stocks, bonds, and mutual funds; and credit card companies, such as
Visa USA or MasterCard International, for consumer credit.Beginning in the 1970s, the
profitability of banks declined due in large part to federal regulations that restricted banks
from offering the variety of products, such as insurance, mutual funds, and stocks, that their
less strictly controlled competitors offered. The gradual shift away from banks as the center
of the American financial services industry occurred between 1973 and 1979, when the
Organization of the Petroleum Exporting Countries (OPEC) dramatically increased oil prices,
leading to double-digit inflation by the end of the decade. As a result, investors with savings
accounts receiving the federally imposed 5.25 percent interest rate were losing money.
Coupled with inflation was the emergence of investment companies offering consumers
money market mutual funds, which enabled the average investor to earn market-rate interest.
Mutual funds were also a safe instrument, as they were invested primarily in high-interest
federal securities and certificates of deposit (CDs). Mutual funds grew as small investors,
lured by huge gains in the stock market during the 1980s, sought ways to earn returns greater
than the rate of inflation. The shift to mutual funds hit American banks hard. In the years
between 1977 and 1981, consumers went from investing $3.9 billion to investing $181.9
billion in mutual funds rather than putting their money in the bank.

FINANCIAL SERVICES
Financial services are the economic services provided by the finance industry, which
encompasses a broad range of businesses that manage money, including credit
unions, banks, credit
card companies, insurance companies, accountancy companies, consumer
finance companies, stock brokerages, investment funds, individual managers and
some government-sponsored enterprises.  Financial services companies are present in all
economically developed geographic locations and tend to cluster in local, national, regional
and international financial centers such as London, New York City, and Tokyo.
Several types of companies offer financial services to the general public, although
few companies engage in multiple consumer financial activities. Business organizations
include banks, credit card companies, insurance companies, stock brokerages, investment
funds and consumer finance companies. These organizations often include private entities,
membership-owned financial institutions, publicly held corporations and federal, state or
locally owned institutions offering banking or investment services to public-sector
employees.
Banking Services

Commercial banking services are the foundation of the financial services group. The
operations of a commercial bank include the safekeeping of deposits, issuance of credit and
debit cards, and the lending of money. The banking industry is most concerned with direct
saving and lending while the financial services sector incorporates investments, insurance,
the redistribution of risk, and other financial activities. Banks earn revenue primarily on the
difference in the interest rates charged for credit accounts and the rates paid to depositors.
Financial services like these primarily earn revenue through fees, commissions, and other
methods like the spread on interest rates between loans and deposits.

An investment bank typically only works with deal makers and high-net-worth clients, not
the general public. These banks underwrite deals, secure access to capital markets, offer
wealth management and tax advice, advise companies on mergers and acquisitions, and
facilitate the buying and selling of stocks and bonds. Financial advisors and discount
brokerages also occupy this niche.

Investment Services

Individuals may access financial markets like stocks and bonds through investments
services. Brokers (either human or self-directed online) facilitate the buying and selling of
securities and take a commission for their service. Financial advisors may charge an annual
fee based on assets under management and direct several trades in the pursuit of constructing
and managing a well-diversified portfolio. Robo-advisors are the latest incarnation of
financial advice and portfolio management, with fully-automated algorithmic portfolio
allocations and trade executions.

Hedge funds, mutual funds and investment partnerships invest money in the financial
markets and collect management fees in the process. These organizations require custody
services for trading and servicing their portfolios, as well as legal, compliance and marketing
advice. There is also software vendors that cater to the investment fund community by
developing software applications for portfolio management, client reporting and other back-
office services.

Private equity funds, venture capital providers and angel investors supply investment
capital to companies in exchange for ownership stakes or profit participation. Venture capital
was especially important to tech firms in the 1990s. Much of what goes on behind the scenes
in the making of big deals is attributed to this group.
Insurance Services

Insurance is another important subsector of the financial services industry. In the United
States, an insurance agent differs from a broker. The former is a representative of the
insurance carrier, while the latter represents the insured and shops around for insurance
policies. This is also the realm of the underwriter, who assesses the risk of insuring clients
and also advises investment bankers on loan risk. Finally, reinsurers are in the business of
selling insurance to the insurers themselves to help protect them from catastrophic losses.

Insurance services are available for protection against death or injury (e.g. life insurance,
disability income insurance, health insurance), against property loss or damage (e.g.
homeowners insurance, car insurance), or against liability or lawsuit - among several other
more targeted classifications.

Tax and Accounting Services

The vast financial services sector also includes accountants and tax filing services,
currency exchange and wire transfer services, and credit card machine services and networks.
It also includes debt resolution services and global payment providers such as Visa and
MasterCard, as well as exchanges that facilitate stock, derivatives and commodity trades.

An accountant utilizes education or experience in the realm of business, finance or

accounting to examine the accuracy of financial statements. Accountants ensure all financial
records and statements, such as the balance sheet, income and loss statement, cash-flow
statement and tax return, are in line with federal laws and regulations and generally accepted
accounting principles (GAAP). Accountants also compile the information needed to prepare
entries to company accounts, such as the general ledger, and they document business
financial transactions over time. This information is used to prepare weekly, monthly,
quarterly or annual closing statements and cost accounting reports. Accountants must also
resolve any discrepancies or irregularities they find in records, statements or documented
transactions. They typically observe established accounting control procedures through an
accounting system or software program.

TYPES OF SERVICES OFFERED

 Accounting

Accounting is the process of measuring the financial parameters of a company and presenting
them to investors and managers of the company for making investment decisions and
evolving management strategies.
  Brokerage

A firm that functions as an agent for the purchase of stocks or other financial securities is
known as a brokerage. Full-service brokerage firms study the market and advise their clients
on which securities to buy. Portfolio and pension fund managers are among their clients.

 Consumer finance

The grant of loans or other credit lines to consumers is called consumer finance, and includes
auto loans and credit cards.

 Credit cards

Credit cards are instruments that help the cardholder to make payments for goods or services
without using cash. The bank issuing a credit card offers the cardholder a line of credit on
which an interest is charged.

 Foreign exchange

Foreign exchange is the conversion of one currency into another by individuals or

corporations for completing transnational deals. It is the biggest segment of the financial
market, and its daily turnover runs into trillions of dollars

 Hedge funds

Hedge funds are private limited investment partnerships that use a large initial investment.
They have low liquidity, and funds usually have a lock-up period of at least one year. Hedge
funds are flexible and help investors spread their risk through their diverse investment
opportunities.

 Insurance

Insurance is a risk management tool that an individual or company uses to transfer risk of
financial loss to an insurance company in return for a one-time or periodic premium.

 Investment banking

An investment bank enables corporations to raise capital and assists them in issuing stocks.
Investment banks underwrite new debts and equity securities for companies. They provide
their clients guidance in mergers and acquisitions.

 Private banking

Private banking is the set of speciality financial services offered by banks to high-net-worth
individuals who make very large investments.
  Private equity

Private equity is a method by which an investor takes control of a significant portion of a

company’s stock in the hope of maximising his or her returns. A typical method of operation
of a private equity fund is to take control of a company and use its returns to repay
themselves.

 Retail banking

Retail banking services are offered to individuals rather than to organisations. Retail banking
helps people open savings accounts, take personal and housing loans, make deposits, and use
credit/debit and ATM cards

 Venture capital

Venture capital is the initial seed money provided by an investor to the holder of a new,
potentially financially rewarding business idea for a share in the returns of the start-up
business. Venture capital companies make investments from a long-term perspective. Venture
capital funds are a big boon for start-ups that do not have access to financial markets.

 Wealth management

Wealth management (or asset management) is a strategy to help the affluent maximise returns
from their investments by alerting them to investment opportunities and helping them choose
appropriate financial products.

GLOBAL FINANCIAL SERVICE MARKET

Efficiency in financial services is considered to be the backbone of any economy. Financial

services indicate the socio-economic wellbeing of any country. With rapid globalization,
financial service application providers are faced with the uphill task of providing the end-
users with software and applications that are risk-free, compliant, and data driven. In modern
times, the strength of a country is determined by how well it progresses financially. Thus,
financial systems require functioning properly in order to bring in smooth and stable
governance. An increasing number of banks and financial institutions have been focusing on
attracting consumers with decisive market strategies. Banks around the world are, therefore,
compelled to shift from their traditional accounting services to more value added solutions
such as mutual funds, insurance, mortgages, and pensions.
Regionally, the global financial services market can be segmented into Asia Pacific,
Europe, North America, and Rest of the World. The developed nations have been dominant
in the global financial services applications market. However, emerging regions such as Asia
Pacific, Latin America, the Middle East, and Africa also have been exhibiting lucrative
opportunities for vendors operating in the market, since they are yet to expansively adopt
financial service applications. The most prominent vendors operating in the global financial
services application market are FIS, Accenture, IBM Corporation, FISERV, SAP AG,
Infosys, Oracle, and TCS. These companies have been capitalizing on technological
advancements, market liberalization, and innovation to attract customers and gain a
competitive edge in the market.

FINANCIAL SERVICES IN INDIA

India has a diversified financial sector undergoing rapid expansion, both in terms of
strong growth of existing financial services firms and new entities entering the market. The
sector comprises commercial banks, insurance companies, non-banking financial companies,
co-operatives, pension funds, mutual funds and other smaller financial entities. The banking
regulator has allowed new entities such as payments banks to be created recently thereby
adding to the types of entities operating in the sector. However, the financial sector in India is
predominantly a banking sector with commercial banks accounting for more than 64 per cent
of the total assets held by the financial system.

The Government of India has introduced several reforms to liberalise, regulate

and enhance this industry. The Government and Reserve Bank of India (RBI) have taken
various measures to facilitate easy access to finance for Micro, Small and Medium
Enterprises (MSMEs). These measures include launching Credit Guarantee Fund Scheme for
Micro and Small Enterprises, issuing guideline to banks regarding collateral requirements and
setting up a Micro Units Development and Refinance Agency (MUDRA). With a combined
push by both government and private sector, India is undoubtedly one of the world's most
vibrant capital markets. In 2017,a new portal named 'UdyamiMitra' has been launched by the
Small Industries Development Bank of India (SIDBI) with the aim of improving credit
availability to Micro, Small and Medium Enterprises' (MSMEs) in the country. India has
scored a perfect 10 in protecting shareholders' rights on the back of reforms implemented by
Securities and Exchange Board of India (SEBI).

MARKET SIZE IN INDIA

The Mutual Fund (MF) industry in India has seen rapid growth in Assets under Management
(AUM). Total AUM of the industry stood at Rs 23.16 trillion (US$ 321.00 billion) as of
February 2019. At the same time the number of Mutual fund (MF) equity portfolios reached a
high of 74.6 million as of June 2018.
Another crucial component of India’s financial industry is the insurance industry. The
insurance industry has been expanding at a fast pace. The total first year premium of life
insurance companies reached Rs 159,004 crore (US$ 22.04 billion) as of Jan 2019.
Along with the secondary market, the market for Initial Public Offers (IPOs) has also
witnessed rapid expansion. The total amount of Initial Public Offerings (IPO) stood at Rs
14,032 crore (US$ 1.94 billion) as of Feb 2019.
Furthermore, India’s leading bourse Bombay Stock Exchange (BSE) will set up a joint
venture with EbixInc to build a robust insurance distribution network in the country through a
new distribution exchange platform.

Top 10 Finance Companies in India
 Aditya Birla Capital Ltd
 Bajaj Capital Ltd
 Housing Development Finance Corporation Ltd
 India bulls Housing Finance Ltd
 L & T Finance Holdings Ltd
 LIC Housing Finance Ltd
 PNB Hosing Finance Ltd
 SBI Capital Markets Ltd

UNION BUDGET 2019

The expectation from the Union Budget was to focus on strengthening the financial services
sector, which is the backbone of India's economic growth. Finance Minister
NirmalaSitharaman announced multiple policies to fuel liquidity in the industry and prioritise
infrastructure, education, disinvestment, Naari Shakti and youth energy, among others.
To achieve growth in the economy, it is imperative to support the financial services sector
and in this connection, the following measures have been proposed:

1. Relaxation of FDI norms for the aviation, media (animation, visual, gaming and comics)
and insurance sectors.

2. 100 percent FDI in insurance intermediaries.

3. Allowing investments in NBFC debt instruments by foreign investors (FPI/FIIs).

4. Government to provide additional capital of Rs 70,000 crore to public sector banks.

5. “Social stock exchange” proposed to be set-up for listing social enterprises and voluntary
organisations.
COMPANY PROFILE

Hedge Equities one of the leading Financial Services Company in India. It is a Kochi
based stock broking company. It offers equity, fixtures, options, depository services,
commodity broking and mutual funds distribution to its customers. Hedge Equities also
provides research services in the field of economic research, result expectations, 1P0, mutual
fund, derivative and other special reports. It is a Public Company incorporated on 17
December 2007. It is classified as Indian Non-Government Company and is registered at
Registrar of Companies, Mumbai. Its authorized share capital is Rs.15,00,00,000 and it’s paid
up capital is Rs.l37,804,992. It is involved in other financial intermediation. This group
includes financial intermediation other than that conducted by monetary institutions.
The company is a member in the cash and derivative market segments of NSE and
only of cash segment in BSE It is also registered as a DP with CDSL (Central Depository
Services Limited). Hedge Equities provides commodity broking through its associate
company, Hedge Commodities Ltd which is a member of MCX (Multi Commodity Exchange
of India Ltd). The company has an extensive and growing network of 180 offices.
The company was launched by the renowned Actor Mohanlal during August 2008, in
association with Fedex Securities, Kozhikode-based Baby Marine Exports, Smart Financial,
Thakker Group and SM Hedge of Videocon. He is the brand ambassador and one of the
directors of the company. It had a net worth of Rs.8 Crores at the beginning, which shortly
reached Rs.10 cores. The company had 16 branches in the first phase and planned to establish
45 new branches all over South India by the end of that year. Now, the company is having a
Global Outlook blended with a local Flavor and backed with a growing network of over 120
service outlets 450 qualified employees, and over 200 support associates. It is the trust and
goodwill of over 20,000 satisfied customers. The main focus of the firm is South India. The
company targeted about 500-700 clients anda business of Rs300crores ofassets under
management from Kerala in the first year of operations. It is specialized in offering a wide
range of financial products, tailor made to suit individual needs. As a first step to make their
presence Global, Hedge Equities have initiated operations in Middle East to cater to the vast
Non Resident Indian (NR1) population in that region. Ever since their inception, they have
spanned their presence all over India through their Meticulous Research, High Brand
Awareness, and Intellectual Management and Extensive Industry knowledge. People at
Hedge believe in creating a new breed of Investors who take judicious decisions through
them.
Hedge Equities is a coming together of over 25 years of cutting edge experience of its
founders in various industries backed with a strong expertise in global financial markets. The
Board comprises of veterans from six power houses in their respective fields: Fedex
Securities (a leading merchant banker). Baby Marine Exports Thakker Developers, Smart
Financial, S.M.Hegde (CFO, Videocon Industries), and Padmashree Mohan Lal. 1t endeavors
to become a well reputed financial services super-mart catering to the evolving needs and
unique requirements of our clientele, and partnering with them to Build. Manage. and grow
their Wealth.
Hedge believes in the philosophy of educating and empowering potential investors.
Studies have revealed that only 3% of the population in Kerala is aware of the investment
opportunities in the stock market and invests in stacks as compared to 40% in Mumbai and
Gujarat. The company's emphasis will be to utilize the potential of this largely untapped
segment. They are basically targeting the small investors and are confident that they will be
able to' guide those investors in the best possible manner. They want to be a revelation to
them since the business here in Kerala is still in its infancy. They say that it is the age of the
smart investor. It's the time company stops working for money and make money work for us.
The company aims in giving financial freedom to customers.
MISSION
"To create an ethical and sustainable financial services platform for the customers and
partner them to build business. to provide employees with meaningful work, self-
development and progression, and to achieve consistent and competitive growth in profit and
earnings for the shareholders and staff“.

VISION
“Evolving into a financial supermarket which will be one stop shop for all financial
solutions”
Ever since its inception, Hedge Equities has been a household name among the
masses owing their success to timely Professional financial assistance to their clients. This
aptly articulates their vision.

SERVICES OFFERED
o Online Trading
o Internet trading
o Depository Services
o Equity Research
o Portfolio Management Services
o Commodity Trading
o Currency Trading
o Hedge School of Applied Economics
MANAGEMENT TEAM

 Alex K Babu – Managing Director

 N Bhuvanendra – CEO
 Bobby Arakunnel – COO
 Mr Pradeep Kumar C – Director
 Mr Joy Arrackal – Director
 Dr Samuel George – Director

INTRODUCTION TO INTERNSHIP
An internship is on-the-job training for many professional jobs, similar to an
apprenticeship, more often taken up by college and university students during his
undergraduate or master degree in their free time to supplement their formal education and
expose them to the world of work. Internships offer various occasion to interns during
internship programs to expand familiarity in their choose area of work , to find out what they
have an importance in an exacting in specific line of business, develop professional network
links, build interpersonal skill or get some credit points if it’s a “sandwich course” they are
in. Employers too benefit from an internship arrangement as it gives access to interns with
some skills to execute relevant tasks for the employer. Many interns end up with permanent
service with the same organization in which they are interned. Their worth to the organization
may be greater than before by the fact that they require modest or less training.
An internship may be compensated, non-compensated or some time to some extent
paid. Internships may be part-time or full-time; in general, they are part-time during the
academic year and full-time in the summer vacations. They usually last for six weeks to two
month; its tenure varies from organization to organization. and it may be shortening or long
based on the organization for which they intern.
In this economic era for tightening business, nuts and bolt of the company Industries or
enterprise, it is necessary to measure its market position in certain time interval with the ever
changing theories and concepts of market for this assessment and technical analysis is
needed. Although analysis dose not reveal the absolute solution of any objective, it provides
the guide towards a good output. This Internship gave me a different experience wherein I
learned the practical side of the business since the real life situations are in front of them and
can be related to concepts, principals, theories which were taken in classes. This would help
me to face the upcoming challenges in the business life. Hedge Equities is one of the leading
financial service company in India, specialized in offering a wide range of financial product,
tailor made to suit individual first step to make their presence Global Hedge Equities is
Kerala's second need, as largest financial institution.
Technical Analysis

Technical analysis is a trading discipline employed to evaluate investments and identify

trading opportunities by analysing statistical trends gathered from trading activity, such as
price movement and volume. Unlike fundamental analysts, who attempt to evaluate a
security's intrinsic value, technical analysts focus on patterns of price movements, trading
signals and various other analytical charting tools to evaluate a security's strength or
weakness.

Technical analysis can be used on any security with historical trading data. This includes
stocks, futures, commodities, fixed-income, currencies, and other securities. In this tutorial,
we’ll usually analyse stocks in our examples, but keep in mind that these concepts can be
applied to any type of security. In fact, technical analysis is far more prevalent in
commodities and forex markets where traders focus on short-term price movements.

Introduction to candlesticks

A candlestick is a type of price chart used that displays the high, low, open, and closing
prices of a security for a specific period. It originated from Japanese rice merchants and
traders to track market prices and daily momentum hundreds of years before becoming
popularized in the United States. The wide part of the candlestick is called the "real body"
and tells investors whether the closing price was higher or lower than the opening price
(black/red if the stock closed lower, white/green if the stock closed higher).
Single Candlestick patterns

1. The Marubozu

The Marubozu is the first single candlestick pattern that we will understand. The word
Marubozu means “Bald” in Japanese. We will understand the context of the
terminology soon. There are two types of marubozu – the bullish marubozu and the
bearish marubozu.

The text book defines Marubozu as a candlestick with no upper and lower shadow
(therefore appearing bald). A Marubozu has just the real body as shown below.
However there are exceptions to this. We will look into these exceptions shortly.

The red candle represents the bearish marubozu and the blue represents the bullish marubozu.

2. The spinning Top

A spinning top has two long equal length shadows with a small body and typically
signals a reversal when they occur during a trend. The reason behind the reversal is
that it shows indecision between buyers and sellers, and that neither of them can close
much higher or lower than the opening. traders use the strategy of going long a
currency pair if a spinning top occurs during a downtrend and shorting a pair if it
occurs during a downtrend
3. The Doji

A doji is a candlestick where the opening price is almost the exact same as the
opening price, with long shadows in one direction or both. What this can signal is
indecision between buyers and sellers. If these occur at the top or bottom of a trend it
can signal a reversal as it shows a slowing of momentum.

4. The Hammer

The hammer chart pattern is a Japanese candlestick that has a small body with a short
to no shadow on top of the body with a long shadow on the bottom. When this
candlestick occurs at the bottom of a trend, it can signal for a reversal.
5. The Hanging Man

The hanging man candlestick pattern has the exact same candlestick as the hammer but has
different price action before it, so it signals for a reversal downwards

6. The Shooting Star

The shooting star is similar to the inverted hammer but occurs during an uptrend and can
signal a reversal downwards. The candlestick for a shooting star is a small bearish body with
a long shadow on top.
The reason behind the reversal in strength is that the bears out strengthened the bulls after a
strong push by the bulls. When this occurs during an uptrend it signifies a change in
momentum downwards.
Formation of Double candlesticks

The trading signal is generated based on two day’s trading action. The length signifies the
range for the trading day; however trades have to be qualified based on the length of the
second day’s candle and formations of two candles as well. One should avoid trading based
on subdued short candles without confirmation candle.

List of Double Candlestick Patterns

Candlestick patterns can be made up of one candle or multiple candlesticks, and can form
reversal or continuation patterns. Some of the most

Useful & popular double candlestick patterns are mentioned below.

1. Bullish Engulfing
2. Bearish Engulfing
3. Bullish Harami
4. Bearish Harami
5. Tweezer Top
6. Tweezer Bottom
7. Dark Cloud cover
8. Piercing Line
Technical analysis of Maruti Suzuki Ltd

 Currently in a downtrend
 RSI-33.72, signals to sell
 Moving average signals to sell
 MACD signals to sell
Technical Analysis of TVS Motors

 Currently in a downtrend
 RSI-39.45,signals to buy
 Moving average signals to buy
 MACD signals to buy
 Technical Analysis of Ashok Leyland Ltd

 Currently in a downtrend
 RSI-25.53,signals over sold hence there is a chance of trend reversal
 Moving average signals sell
 MACD signals sell
Technical Analysis of Hero Motocorp

 Currently in a downtrend
 RSI-45.20,signal sell
 MACD signals sell
 Moving average signals sell
Technical Analysis of Tata Motors Ltd

 Currently in a downtrend
 RSI-27.88, signals oversold hence there is a chance of trend reversal
 Moving average signals sell
 MACD signals sell