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A PROJECT REPORT ON “EQUITY, COMMODITY & CURRENCY ARE BETTER WAY OF

INVESTMENT IN RECENT ERA.”
THE STUDY WAS CONDUCTED FROM 1st OF JUNE 2011 TO 20th OF AUGUST 2011 AT

RELIGARE SECURITIES LTD, KOLKATA By

ADITYA MONDAL
COMPANY GUIDE MR. NILADRI SENGUPTA RELIGARE SECURITIES LTD FACULTY GUIDE Prof. SUJIT MUKHERJEE HOD (MARKETING DEPARTMENT)

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BIMS, KOLKATA

ACKNOWLEDGEMENT
First and foremost, I would like to thank and express my gratitude to Religare Securities Limited which is a leading organization in Stock & Commodity trading, for giving me the opportunity to work in their esteemed organization. I express my sincere gratitude to my faculty guide Mr. SUJIT MUKHERJEE of BHAVANS INSTITUTE OF MANAGEMENT SCIENCE Kolkata, for helping me and providing me with useful information. Interacting with him I learnt basics of the security and technical analysis and I am sure the knowledge imparted will go a long way in enriching my career. I would also like to thank Mr. Subarno Saha ,Branch manager , Religare Securities ltd South City Branch for providing me this wonderful opportunity to undergo my summer internship in their division. Along with my mentor, I would like to give my sincere thanks to my project guide Mr. Niladri Sengupta. The success of this project also depends on the encouragement and guidelines provided by him. I take this opportunity to express my gratitude for all the opportunities, time and help he gave me.

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Big thanks to BHAVANS INSTITUTE OF MANAGEMENT SCIENCE for providing me with adequate knowledge for the successful completion of this project. I would also like to thank all friends, seniors and other faculty member of the institute who helped me in some way or the other in completing the project. Last but not the least I would like to thank my family without whose support and motivation this project could not have been completed.

Table of content
SL. NO
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19.
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TITLE
Executive Summary Industry Profile Company Profile Organization structure Religare Joint venture Religare Diversification Competitor Services offered to customers Product SWOT STP Technology used Religare Proposal Consumer behavior Objective Methodology Introduction to stock market BSE Indices S&P CNX (NIFTY)

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4 7 8 12 13 14 16 18 19 21 23 24 24 25 26 27 28 30 33

Religare Securities Limited which deals in securities. 23. at the same time client behavior towards the product and service offered to them was also looked upon.20. After all. The interaction with consumers gave the opportunity to understand their preference and they reason for their selection? As the company deals in shares and securities. it has added new real life learning as in how to deal with customers. corporate ethics etc. It has added value to the concepts learnt inside the four walls of our campus. Concept learned in the classroom. risk and return factor and why indices etc. making of the client essentially depends on the sense of familiarity and trusts that branding can create with customer’s . INDICES NSE INDEX as on 16th September BSE INDEX as on 16th September ANNEXTURE REFERENCE 34 36 38 40 57 Executive Summary This training has been the simulation of the real life situations in the corporate world. 22. 21. information got about the corporate or even the best of the books of management cannot compensate the first hand working experience gone through. being in the textbooks for the last few years no one wasn’t prepared for anything like this. 24. enabled to gain idea as to why they are using them and for what purpose. 4 .Analysis was conducted on whether the company is able to provide what it promises to its client or is providing more then what it promises. how to talk with them. A thorough interaction with the consumers about different aspects like reason for investment.

Second part of the project give an insight about the stock market. 5 . at the same time it gave enough scope to implement ones ability. It also gave an insight about the importance of Demat account which is necessary for dealing in stock market and dealing in the indices. The charges (Brokerage plans) for trading in the Religare securities limited and different competitor’s has also been discussed. The whole project can be divided into two parts: First part of the project portrait an image of Religare as a company showing its venture capital and types of product offered by them.This project will envision about the stock market and its indices in general. why is it necessary at all. The objective of my project is to understand the Importance of indices in the equity market along with selling financial services. when it all started and the importance of Indices in the broking industry as well as in the concern economy along with this it also shows how indices work. This project has been a great learning experience. what are the uses of indices. This report is purely based on whatever learned and gathered through internet and practical work. It also throw some light on the different method’s used in computing the indices along with type of method used for computing Sensex and Nifty.

in order to make investing easier for them. I have been communicating with different types of customers through various media. I have been talking to existing and potential clients of the company over the phone. Interaction with the clients helped to know the image of the company in the minds of the customers. I have also worked as a part of sales force of the company and sold De-mat account. I have concentrated on existing as well as prospect clients trying to know their opinion about their association with different financial firms. 6 . I went for the field work. Adding to this. In the visit the main focus would be to convince the clients to do business with the company and telling them about the benefits provided by the company.Work done at Religare As an intern. I have carried out research to track different variables for different financial companies and Religare has the edge over most of the companies. including client visits and tele calling who fall under the space for this project. asking for an appointment following which there will be client visit. My job there was to advise the client to take the suitable products offered by the company which suit them the best. spoke to customers and tracked their investment pattern to help them suggest the kind of financial product they should use according to their risk appetite.

are eligible to act as DPs. CDSL was set up with the objective of providing convenient. custodian’s stockbrokers.INDUSTRY PROFILE A Depository facilitates holding of securities in the electronic form and enables securities transactions to be processed by book entry by a Depository Participant (DP). Bank of India. Standard Chartered Bank. According to SEBI guidelines. Some of the important milestones of CDSL system are: 7 .e. dependable and secure depository services at affordable cost to all market participants. There are two depositories operating in India i. HDFC Bank. The investor who is known as beneficial owner (BO) has to open a demat account through any DP for dematerialization of his holdings and transferring securities. NSDL & CDSL  NSDL The first depository in India established in August 1996 and promoted by institutions of national stature responsible for economic development of the country has since established a national infrastructure of international standards that handles most of the securities held and settled in dematerialized form in the Indian capital market  CDSL Bombay Stock Exchange Limited (BSE) promoted CDSL jointly with leading banks such as State Bank of India. offers depository services to investors. banks. etc. Union Bank of India and Centurion Bank. Bank of Baroda. who as an agent of the depository. financial institutions.

commodity brokerage services. as well as a representative office in London. it also has dedicated offices for its investment banking. “Wealth Spectrum” and “Institutional Spectrum”. etc have established connectivity with CDSL. life insurance and initial public offerings (“IPOs”) and personal credit (personal loans services (“PLS”) and loans against shares (“LAS”). personal financial services (financial planning for the retail investor. As on September 30. the clearing house of BSE.217 locations managed by it and its Business Associates all over India. Calcutta Stock Exchange.CDSL received the certificate of commencement of business from SEBI in February 1999. Historically. Retail Spectrum covers equity brokerage services. portfolio management services and priority client services. Delhi Stock Exchange.All leading stock exchanges like the National Stock Exchange. Retail Spectrum services in India are being offered through 8 . COMPANY PROFILE Religare is a financial services company in India. institutional brokerage. It is promoted by the promoters of Ranbaxy Laboratories Limited. Settlement of trades in the demat mode through BOI Shareholding Limited. While the majority of offices provide the full complement of services. The company has divided its product and service offering under three broad client interface categories: “Retail Spectrum”. high net worth individuals and corporate and institutional clients. The Stock Exchange. the service offered in this spectrum has been the most substantial part of its business. savings products. offering a wide range of financial products and services targeted at retail investors. Ahmedabad. 2007 it operated from 6 regional offices and 40 sub-regional offices and had presence in 392 cities and towns controlling 1. including the distribution of mutual funds. started in July1999.

Wealth Spectrum covers products and services which are geared to service high net worth individuals and provide wealth advisory services (on an asset allocation model). including domestic mutual funds. Retail Spectrum focuses on clients who keep less than Rs. banks and corporate customers. to give Indian clients access through it to U. 2. 2007 in order to expand retail commodity brokerage services. PMS (discretionary equity investments). 2. priority client equity services (non-discretionary equity trading services). 2007 to 50 as of September 30. It has also increased its local commodity locations (or “mandis”) from 42 as of March 31. or its “Business Associates”. Wealth Spectrum focuses on clients who keep at least Rs. Inc.com. art initiatives (an art fund which we intend shortly to launch as an investment diversification product) and international equity investment advisory services.S. FIIs. www. mutual fund investments. portfolio management investment or insurance premiums paid up. a New York broker-dealer.religareonline.5 million on a continuing basis. in the form of either equity trading account margin.5 million on a continuing basis or more in the form of equity trading account margins.. Institutional Spectrum covers products and services which cater under one service offering to corporate and institutional clients.a network of 1. mutual fund investment. The firm has entered into an exclusive arrangement with Wall Street Electronic. The Institutional Spectrum 9 . portfolio management investments or insurance premiums paid up. which is being developed as an integrated portal to offer financial and other services. markets. who deliver a standard quality of service offering on the basis of a pre-determined revenue sharing ratio for the business generated through them. Business Locations include intermediaries.217 Business Locations spread across 392 cities and towns and also through our online platform.

delivering superior value for all stakeholders globally".MR.provides services to the institutional investor community through institutional brokerage and investment banking services. VISION "To be the leading emerging markets financial services group driven by innovation. VINOD KUMAR KAUL  DIRECTOR:. SHIVENDER MOHAN SINGH 10 .MR.MR. MALVINDER MOHAN SINGH  DIRECTOR: MR. HARPAL SINGH  MANAGING DIRECTOR:.MR. We also link corporate clients with a transaction advisory group. SUNIL GODHWANI  DIRECTOR:. MISSION “PROVIDING COMPLETE FINANCIAL CARE DRIVEN BY THE CORE VALUES OF TRANSPERANCY AND DILIGENCE” BRAND ESSENCE Core brand essence is Diligence and Religare is driven by ethical and Dynamic processes for wealth creation DIRECTORS OF RELIGARE SECURITIES LTD  CHAIRMAN:. which consists of account managers through whom institutional clients are able to access the full range of our services.

Of Religare securities limited are 33764. The A.R. THE RELIGARE EDGE  Diverse offerings  Dynamic management team  State of the art technology  Vast distribution and reach  Robust brand recognition 11 . The A. A SEBI approved portfolio manager. It is required by the brokers who deal on behalf of the investors or sell the mutual funds of different companies present in the market.RELIGARE SECURITIES LTD Member of National stock exchange of India and Bombay stock exchange of India and depository participant with national securities depository limited (NSDL) and central depository services limited (CDSL). RSL provides platform to all segments of investors to leverage the immense opportunity offered by equity investing in India either on their own or through managed funds in portfolio management.N NO.R.N NO.

 Synergistic partnerships  Innovative initiatives  Pan India footprint  Powerful research and analytics supported by a pool of highly skilled research analysts  Ethical business practices  Single window for all investment needs through your unique CRN Organization structure 12 .

THE FILM FUND MILESTONE RELIGARE-PRIVATE EQUITY FUND GROUP COMPANIES OF RELIGARE FORTIS HEALTHCARE LTD 13 .RELIGARE’S JOINT VENTURES AEGON RELIGARE LIFE INSURANCE RELIGARE MACQUARIE WEALTH MANAGEMENT COMPANY VISTAAR RELIGARE.

 Capital Market Financing Religare .Milestone  JV with Milestone Capital to manage a healthcare and education fund Vistaar Religare Capital Advisors Ltd. Religare diversification Religare Finvest Limited  Lending and Distribution business Religare Finance Ltd.SUPER RELIGARE LABORATORIES LTD RELIGARE WELLNESS LTD. RELIGARE TECHNOVA LTD.  JV with Vistaar Entertainment Ventures for film fund  India's first ever film fund Religare Insurance Broking Limited  Life Insurance Broking Business 14 .

 JV with Macquarie for Wealth Management Business Religare Venture Capital Limited  Private Equity and Investment Manager Religare Capital Markets Limited  PE and M&A Advisory  Institutional Broking  Investment Banking Religare AMC Limited  Asset Management Business  Portfolio Management  Religare Commodities Limited  Commodity Broking Business 15 . Non-Life Insurance Broking Business Religare Arts Initiative Limited  Business of Art  Art Gallery  Art Advisory Religare Macquarie Wealth Mgmt. Ltd.

Brokerage 16 .  Life Insurance Company JV with Aegon(26%) Religare (44%). Ltd. They do not care to reply to your queries. You have to shut down one screen to open the other. over and above Relationship Manager Responsiveness.AEGON Religare Life Insurance Co. The computer programme is a bit more cumbersome than others. but they do not allow more than 25 scripts at a time. complaints and client instructions KOTAK SECURITIES: Kotak Securities are generally good. Good rate of brokerage is their plus points. Receiving funds from them is the worst part of their customer Service. INDIA BULLS: They are fast in implementation of orders and real-time quotes. and Bennett & Coleman (30%) Religare Securities Limited  Retail Equity Broking  Online Investment Portal  Depository Services COMPETITORS There are several financial securities companies playing their roles in Indian equity market but Religare faces competition from these few companies.

rate is higher. with them. May be they can think of having Mirror Sites or similar to reduce the burden on limited access. MFs and now Post Office Savings are a dream of investor of any category. It looks into the bank a/c. Their batting average is higher. DP charges are higher. All facilities of trading in equities. balance before Placing purchase orders . However. If this feature is enabled. You can go on adding scripts and customize your trading. the order execution is a weak link in their system. No special benefit in having online trading a/c. SHARE KHAN: Share khan is an Intuitive Trading place to deal in shares: both cash and derivatives. then nobody could beat it the most user friendly company . 17 . ICICI DIRECT: ICICI direct is par excellence compared to others except that they do not provide Online Real time TICKER Trading. That way it saves on interest on funds not used till order is executed. HDFC SECURITIES: HDFC securities are good as we have banking a/c with them and the payment gateway enables immediate transfer of funds either way. Perhaps huge number of customers accessing their servers slows down the operations. Order placement for buy or sell is time consuming as it takes longer time compared to other Online trading brokers . However. All de-mat data and buying selling obligations etc are available on the report screen. Excellent security feature of a bank is the greatest safety for dealing with them. It needs funds earmarked for trading from the savings/current a/c held with the bank. their Biggest plus point is daily Trading Calls.

Envisaged Group Structure RELIGARE’s 18 .

PRODUCTS 19 .

the Company has a reach of over 1500 locations in the country to cater to retail and high net worth individuals. 20 . Investment banks profit from companies and governments by raising money through issuing and selling securities in the capital markets (both equity. the highest quality independent financial advice and transaction execution. Commodities: Trading platform for commodities on NCDEX and MCXCommodity trading Facility is provided to all the clients at all the centers and location. Portfolio Management Service (PMS): The share company takes a lump sum amount from their customers and trade with that money in their own account by the help of a knowledgeable and experienced fund manager. bond) and insuring bonds (selling credit default swaps). At Religare Securities Ltd. The company is planning to establish itself as a leading research centre for commodities market in the country. as well as providing advice on transactions such as mergers and acquisitions.Equity and derivatives: Trading platform for equities and equity derivatives on NSE and BSE. Distribution: Distribution of retail finance products – Mutual Funds and IPO‘s. Investment Banking business is dedicated to providing corporations. trading in securities and managing corporate mergers and acquisitions. The group is empanelled with all the Fund Houses in the country to sell their Mutual Fund and NFO‘s using the retail network. Investment Banking: An Investment Bank is a financial institution that deals with raising capital. The branches constitute of self-owned hubs and franchise/sub broker through whom the business is sourced. entrepreneurs and investors. IPO‘s selling is undertaking from all the branches of the company.

The investment is denoted as units and is represented by the value that it has attained known as Net Asset Value (NAV). companies and individual stock to our clients on a basis. In a ULIP. in an annuity. the borrower initially receives or borrows an amount of money. In a loan. each installment is the same amount. Loan: A Loan is a type of debt. 21 .Insurance (ULIP): Unit linked insurance plan (ULIP) is life insurance solution that provides for the benefits of risk protection and flexibility in investment. sectors. fundamental and market research. from the lender. the invested amount of the premiums after deducting for all the charges and premium for risk cover under all policies in a particular fund as chosen by the policy holders are pooled together to form a Unit fund. called the principal. Financial advisory services: Investment and trading advisory services to its clients based on technical. Typically. A Unit is the component of the Fund in a Unit Linked Insurance Policy. It releases reports based on fundamental research of industries. and is obligated to pay back or repay an equal amount of money to the lender at a later time. It entails the redistribution of financial assets over time. Comprehensive reports on volume breakouts.The policy value at any time varies according to the value of the underlying assets at the time. the money is paid back in regular installments. between the lender and the borrower. or partial repayments. The returns in a ULIP depend upon the performance of the fund in the capital market.The Company has one of the best fundamental research and technical analysis teams in the company. The technical research team gives the clients recommendations using charting tools like Falcon and Meta stock. delivery reports and F&O open interest positions are given to all the clients.

so the brand value of the company not yet created 22 .SWOT OF RELIGARE SECURITIES LTD(RSL) Strengths:       No annual maintenance charge for online broking services Diverse portfolio under one roof Offer one of the lowest brokerage Best equity research team No Stamp duty Company having young management team which consists of very talented and    knowledge professionals from different fields Highly user friendly trading website with full of intelligent tools Company has innovative products and services Company is unaffected in this global recession which shows company‘s never say die sprits. It means company is armed with proper resources to fight any adverse situation Company‘s research team provides tremendous research calls to their  clients which almost hits and generates level of satisfaction to clients Weakness:  Website is not updated  Investors are not completely aware of Religare Securities Limited.

 High volatility in the market 23 . Investors are now ready to invest their money in this market because the return is much higher compare to other place for investment. so they are ready to bear risk factor associated with it. It means volume will increase year by year in this sector Threats:  Cut throat competitions  Awareness of the company is still not there in public. The market share of the company in commodity and equity market in terms of turnover is not significant  Customers are not satisfied irresponsibility of the RM OPPORTUNITY:  Religare is coming up with their own Banking  Religare is changing working culture drastically which might lead more satisfied customers and employees  The growth of capital market is very high.

Segmentation, Targeting and Positioning
Segmentation:
Branch: South City Reason for choosing south city as the branch  Potential New entrance  Existing investor  Brand switcher opportunity

Targeting:
 High middle class income people  Posh resident near by which will bring huge potential customer

Positioning:
 Positioning the branch and the brand as the best alternative available there  Offering the mix of all the financial services excluding personal, home and education loan
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TECHNOLOGY
 Odin , used for trading purpose  LD, back office data entry  FAST TRADE , used for trading purpose  AXIS, used for back office purpose

RELIGARE PROPOSAL

 No DP a/c opening charges
 Trading a/c opening charges 500

 Free sms alert facility  Free technical calls provided  Online and offline facility  No charges for courier services
 Brokerage 0.015% as intraday basis  Brokerage 0.15% as delivery basis

 No DP incoming charges
 Online and offline transaction confirmation everyday

 Full back office support
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 Special technical person support
 Full guidance by dealer and managers

 Account opening within 3 days
 15. T+15 day facility

CONSUMER BEHAVIOR
 The consumer want to invest with a long term strategy rather than short term in equity market

 As silver is rising everyone wants to work in silver

Consumer don’t want to keep huge money as margin

Many consumers are still waiting for another correction to happen in the market at that time only they will invest

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The type of product and services offered by Religare is also being emphasized upon.  Analysis of the various Indices  To improve customer acquisition and retention  To know the most prominent types of indices in India  Mapping up potential customers for Religare securities ltd 27 . de mat account and selling financial services. The training also include making public aware of the share trading.OBJECTIVES THE RELIGARE SEURITIES LIMITED is a share trading firm and objective of this project is to understand the importance of Indices in equity market. The analysis of different indices and the method of constructing those indexes is also the part of the project.

At first the respondent would be asked about their investment and then the conversation would continue according to their requirement which emerge during the interview   Secondary Research: There are various ways of collection of secondary data. one of the method will be interview • Telephonic interviewing: This method will include calling a number of samples. and asking them a series of questions. no fixed questionnaire was prepared. samples were questioned according to their profile • Personal interviewing: This method includes different ways of interviewing respondents face to face at their place. in this project intranet and internet method is being used 28 . Here. in which direct approach will be used. Primary Research: Primary research includes qualitative research.METHODOLOGY Collection of data is through Primary Research and Secondary Research. about their interests in investment and trading.

• Intranet : information regarding the various financial services like equity. A single figure that sums up the overall performance of the market on a daily basis is the Stock Index. For a lay man it is the pulse rate of the economy. portfolio management services. is actually extremely volatile since it is driven more by the sentiments of the people “Stock Market is a place where the stocks of a listed company are traded. mutual the internal website of Religare • funds. which will help to locate proper information about the Market and the Indices Introduction to stock market “It’s ironical that something as huge as a stock market which should be stable as it represents the economy of a nation. commodity. A good Stock Index captures the movement of the well diversified and highly liquid stocks. insurance etc and information about the company was gather through Internet database: information accessed and searched on the internet. Index movements reflect the changing expectations of the stock 29 .

In India. the Stock Exchange. London and Paris set up Exchanges sometime near the end of the 17th century.    All the investments in the index are subject to selection Includes calculations and rules for weighting of the index components Provides specific instructions for adjustments to maintain consistency But when and where did it all started? Stock Exchanges as a centre for trading were established as early as the 16th century. The other major exchange is the National Stock Exchange of India Limited (NSE) and was incorporated in November 1992. This was the world's first Stock Exchange. One of the most common ways to understand a stock index is to have a look at the composition of the stocks it represents.9% of the trading done in India. A stock index is generally a portfolio of stocks. In Antwerp. The index is calculated by finding the weighted average of the prices of the most actively traded companies in the market. The reason for establishment was primarily the need for financing businesses and for providing returns for the finances. which is still one of the world’s most powerful exchanges today. Types of Indexes available:30 . the New York Stock Exchange (NYSE) was established. was established in 1875 as "The Native Share and Stockbrokers Association" (a voluntary non-profit making association) and is now popularly known as the Bombay Stock Exchange (BSE). bonds or other kinds of investments which are used to represent either segments of an exchange or the whole exchange. a major financial hub in Belgium. in 1792. the set of rules require the stocks to satisfy certain criteria. Generally.market about future dividends of the corporate sector. such that. Mumbai. traders gathered together in 1531 to speculate in shares and commodities. Combined the two trading zones are responsible for 99. Close to hundred years later. where the weights are generally in proportion to the market capitalization of the company.

1. BSE INDICES For the premier stock exchange that pioneered the securities transaction business in India. the stocks in the Index are high-capitalization stocks representing a sector of the S&P 500. liquid stocks of the country and becomes the benchmark for the entire capital market of the country. Broad-Market Index: This consists of all the large. over a century of experience is a proud achievement. 31 . An example for this is the S&P CNX 500  Specialized Index: We can either have Industry or Sector specific Index for any particular sector of the economy which then serves as the benchmark for that particular industry or we can have an index for the highly liquid stocks Taking an example for an industry specific index we have the S&P Banking Index which is a capitalization-weighted index of 26 domestic equities traded on the New York Stock exchange and NASDAQ. Similarly. The S&P CNX Nifty is a relevant example for an index composed of highly liquid stocks. A lot has changed since 1875 when 318 persons by paying a then princely amount of Re.

larger market capitalization and the new industry sectors. Calcutta.Mumbai. Till the decade of eighties. BSE has continuously been increasing the range of its indices. came out with a Stock IndexSENSEX. DOLLEX-30 and the country's first free-float based index .became members of what today is called Bombay Stock Exchange Limited (BSE). 1996 and since then. BSE-500 Index and 5 sectoral indices were launched in 1999. The 'free-float market capitalization-weighted' methodology is a widely followed index construction methodology on which majority of global equity indices are based. Ahmedabad and Madras. The launch of SENSEX in 1986 was later followed up in January 1989 by introduction of BSE National Index (Base: 1983-84 = 100). there was no measure or scale that could precisely measure the various ups and downs in the Indian stock market. Delhi. In 2001. In order to fulfill the need for still broader. SENSEX is being calculated on a free-float market capitalization methodology.that subsequently became the barometer of the Indian stock market. the 'BSE-200' and the 'DOLLEX-200'.the BSE TECk Index. 2006. The journey in the 20th century has not been an easy one. BSE launched on 27th May. 2003. all major index providers like MSCI. the stock market in the country has passed through good and bad periods.Over the decades. The BSE National Index was renamed BSE-100 Index from October 14. It is scientifically designed and is based on globally accepted construction and review methodology. 32 . BSE. 1994 two new index series viz.. S&P and Dow Jones use the free-float methodology. BSE launched BSE-PSU Index. SENSEX today is widely reported in both domestic and international markets through print as well as electronic media. . in 1986. Since then. BSE launched the dollar-linked version of BSE-100 index on May 22. Since September 1. segment-specific and sector-specific indices. It comprised 100 stocks listed at five major stock exchanges in India . BSE has come a long way in attuning itself to the varied needs of investors and market participants. STOXX. FTSE. it is being calculated taking into consideration only the prices of stocks listed at BSE. With a view to provide a better representation of the increasing number of listed companies.

Right from early nineties. More recently. while its free-float market capitalization was 15. the SENSEX has over the years become one of the most prominent brands in the country. the market capitalization of SENSEX was about billion (US$348 billion).733 billion (US$660 billion) (42. As the oldest index in the country. BSE website and news wire agencies. Small wonder. the Price to Book Value Ratio and the Dividend Yield Percentage on day-to-day basis of all its major indices. One can identify the booms and busts of the Indian equity market through SENSEX. the SENSEX has become one of the most prominent brands in the country. Due to is wide acceptance amongst the Indian investors. As of 21 April 2011.34% of market capitalization of BSE). All BSE Indices are reviewed periodically by the BSE Index Committee. The values of all BSE indices are updated on real time basis during market hours and displayed through the BOLT system. This Committee which comprises eminent independent finance professionals frames the broad policy guidelines for the development and maintenance of all BSE indices. Small wonder. 29. it provides the time series data over a fairly long period of time (From 1979 onwards). real estate caught the fancy of the investors. SENSEX is regarded to be the pulse of the Indian stock market. the stock market witnessed heightened activity in terms of various bull and bear runs. SENSEX has captured all these happenings in the most judicious manner. The BSE Index Cell carries out the day-to-day maintenance of all indices and conducts research on development of new indices.690 BSE disseminates information on the Price-Earnings Ratio. In the late nineties. it provides the time series data over a fairly long period of time (from 1979 onwards). 33 . As the oldest index in the country. the Indian market witnessed a huge frenzy in the 'TMT' sectors.

IISL is India's first specialized company focused upon the index as a core product. IISL has a marketing and licensing agreement with Standard & Poor's. (IISL). which is a joint venture between NSE and CRISIL. The index is a free float market capitalization weighted index. The S&P CNX Nifty covers 23 sectors of the Indian economy and offers investment managers exposure to the Indian market in one portfolio. Nifty is owned and managed by India Index Services and Products Ltd. Infosys Technologies. index based derivatives and index funds. From June 26. 2009. the index used full market capitalization as weight assigned to different constituents. top four scrip’s in the index (Reliance Industries.is the leading index for large companies on the National Stock Exchange of India. The S&P CNX Nifty stocks represent about 60% of the total market capitalization of the National Stock Exchange (NSE). From inception. As of November 2010. the index is computed based on free float methodology. It is used for a variety of purposes such as benchmarking fund portfolios. The Nifty is a well diversified 50 stock index accounting for 23 sectors of the economy. ICICI Bank and Larsen & 34 .S&P CNX Nifty The Standard & Poor's CRISIL NSE Index 50 or S&P CNX Nifty nicknamed Nifty 50 or simply Nifty (NSE:NSEI).

and a base capital of Rs 2. Criteria for inclusion of Stock in Nifty50   Average market capitalization of Rs. no other index matches the SENSEX in reflecting market movements and sentiments. over six months At least 12% floating stock (not held by promoters of the company or their associates)  Indices The Index SENSEX as the benchmark index of the Indian Capital Markets with wide acceptance among individual investors.06 trillion The S&P CNX Nifty Index was developed by Ajay Shah and Susan Thomas. SENSEX is widely used to describe the mood in the Indian Stock markets  Benchmark for funds performance The inclusion of blue chip companies and the wide and balanced industry representation in the SENSEX makes it the ideal benchmark for fund managers to compare the performance of their funds 35 . The components of the Nifty 50 represent 77% of all the trading volume on the NSE and 60% of the total market capitalization. foreign investors and fund managers. 1995.The objectives of the index are:  To measure market movements Given its long history and its wide acceptance. which marked the completion of one year of operations of NSE's Capital Market Segment. 000 million or more during the last six months Liquidity: Cost of transaction (impact cost) of less than 0. The base period for the S&P CNX Nifty index is November 3. The base value of the index has been set at 1000. institutional investors.5.75% for more than 90% of trades.Toubro) account for about one third of the weight in the index whereas the top eight scrip’s account for about half the weightage in the index.

money managers and small investors all refer to the SENSEX for their specific purposes The SENSEX is in effect the proxy for the Indian stock markets. Because the index is influenced by expectations of the future performance of the stocks. Index-Futures was launched on SENSEX However. There are processes afoot to reduce the pure noise element and speculative margin of the index. Thus everyone would follow suit giving the speculator a good short term profit margin. it is riddled with imperfections which can often confuse rather than help. Thus it can be seen that though the index is a popular investor’s guide. The basic problem arises due to imperfect information reflected by the inclusion of illiquid stocks in the calculation of the index. The dot com bubble of 2000 is a case in point. Illiquid stock is one which is not actively traded in the market or has been lying dormant for a long time. Inclusion of such stocks leads to problems of stale prices. Any downturn in the market would be reinforced by the collective action of the investors to hedge against any losses and get out of the market. The Stock Index can often also act as a trigger to herd mentality. it leads to a self fulfilling prophecy. There was a rush of investment in anything even remotely connected with information-technology driving up the stock prices way above what they should have been according to their P/E ratios. 36 . The stock index is often more a representation of investors’ perceptions (noise element) rather than real news.e. The country's first derivative product i. Suppose an investor thinks that the stock of the company is going to go down and this feeling prevails across the market then everyone would want to get out of the company’s stock. The index popularly used in India is the NSE CNX Nifty. the market index is a double edged sword. This will automatically lead to the stock prices crashing. The speculator buys long thus creating waves in the market that the stock he is investing in is ‘hot’. For index based derivative products Institutional investors. This herd mentality is often used to the advantage of speculators. This would further depress the market. bid-ask bounce and ease in manipulation.

taking into account all its inconsistencies. 2011 37 . when a stock price is not changing. Thus even when no news is breaking. Findings NSE INDICES as on 16th SEPTEMBER. However the last traded price of an illiquid stock (if included in the index) may be even a week old thus distorting the index. A prudent investor is one who exercises caution while interpreting the market index.Bid-ask bounce: Illiquid stocks have a wide bid-ask spread. there has to be continuous evaluation of the stocks listed and any stock which remains inactive for a period of time should be de-listed or removed from the index. Stale prices: A stock index is supposed to represent the state of the stock market at the closing time (3:30 pm in NSE) on a particular day. Such changes are spurious in nature. Hence to make an index useful. the `bid-ask bounce' is about prices bouncing up and down between bid and ask.

35 5620.65 0.55 30.60 7385.31 10152.60 -4.99 239.57 0.60 10123.00 4123.05 -0.95 0.40 7341.15 0.10 4136.20 8000.10 238.72 30.25 7320.70 5123.30 10197.00 2201.45 30.55 4124.14 4097.15 3757.95 10218.79 4995.Index P r e v C l o s e S&P CNX NIFTY CNX NIFTY JUNIOR CNX IT BANK NIFTY INDIA VIX CNX 100 S&P CNX DEFTY S&P CNX 500 CNX MIDCAP NIFTY MIDCAP 50 CNX INFRA CNX 38 REALTY CNX ENERGY CNX Open High Low Last % Change 5075.35 0.65 -0.25 7365.30 3734.50 9590.05 243.79 5035.35 5143.20 29.65 5620.00 4093.65 28.40 3692.77 10147.46 5550.40 4988.75 0.35 9798.15 9660.28 .95 2766.85 2205.35 7982.80 1.10 2753.10 2771.16 2739.15 8015.66 7340.10 7918.38 5031.15 5533.05 3742.95 2189.25 240.79 5055.30 10124.52 7879.15 10096.72 1.35 9744.40 3698.29 0.75 5515.85 9729.30 0.35 0.65 10153.80 2737.90 2212.34 2197.60 5068.20 10158.10 5114.70 241.05 10194.

09 -0.633.85 4533.88 6.957.32 1.05 4543.39 735.80 4782.212.940.945.31 8.55 12.92 0.18 2.57 102.035.047.59 Open High Low Current Value Previous Close Change(Pts) Change(%) 12.25 2011 as on 16th SEPTEMBER 1.02 6009.575.41 1.35 1.183.65 BSE Indices3124.08 1.20 0.36 8.089.116.76 0.13 12.56 85.838.97 80.43 8.48 1.50 -0.30 6067.49 2.76 8.95 3251.90 5.90 733.05 0.51 8.65 3232.20 3121.70 0.17 1.44 6.729.44 16.54 6.91 1.85 4.942.69 12.CNX MNC CNX PHARMA 4785.367.64 16.384.978.19 0.80 6.78 736.65 3162.56 0.18 20.933.122.60 4804.09 11.10 4573.41 0.113.86 7.53 2.647.791.097.103.199.69 0.281.87 2.23 0.80 0.83 741.632.26 8.907.852.195.39 5.950.912.31 12.31 2.25 4767.60 8.930.60 2.892.48 1.68 8.94 2.44 12.647.59 1.87 7.300.28 3.83 28.578.924.81 1.963.189.62 0.21 93.54 16.70 3141.92 5.215.353.31 0.886.112.99 8.93 2.08 5.46 17.700.65 2.66 7.970.23 6.67 6.937.59 1.01 6.69 12.57 24.58 2.079.85 4545.963.49 8.602.59 CNX PSE 3091.122.04 7.50 0.779.635.54 12.182.40 2.619.366.700.98 7.737.52 8.273.00 3267.34 1.90 0.39 7.875.925.95 8.189.01 5.61 12.95 6044.95 CNX PSU BANK CNX SERVICE Category/Index Broad SENSEX MIDCAP SMLCAP BSE-100 BSE-200 BSE-500 Thematic SHARIAH 50 Investment Strategy BSE IPO DOLLEX-30 DOLLEX-100 DOLLEX-200 Sectoral PSU AUTO OIL&GAS CG POWER METAL HC 7.809.56 2.88 8.90 5986.51 7.67 1.49 8.13 6.72 1.088.54 731.954.209.59 -3.25 5.53 1.207.70 7.00 4781.85 2.889.81 38.00 2.35 4574.768.637.637.923.95 8.99 1.51 8.37 3218.61 5.58 6.29 1.777.14 0.63 16.853.213.61 39 .115.993.30 3196.73 17.372.876.06 108.63 7.733.75 6.114.44 0.236.005.109.06 1.410.05 104.50 6093.70 12.11 2.

159.24 5.145.84 3.113.967.33 3.12 -0.14 3.80 3.779.192.785.217.39 -0.46 10.770.001.04 This data was last updated on Thursday.205. September 15.244.626.80 24.05 6.062.63 1.56 5.56 5.32 -1.07 -0.569.36 0. 2011 REALVOL1MTH REALVOL2MTH REALVOL3MTH -- -- -- 23.33 ANNEXTURE QUESTIONNAIER 40 .36 -0.68 3.32 -1.22 5.50 -18.574.11 -0.33 1.081.12 -0.58 11.17 0.31 3.43 19.80 24.70 -14.89 6.28 21.199.88 0.217.15 4.982.21 6.801.542.37 11.983.96 6.81 11.36 -0.33 -- -- -- 21.987.05 6.80 3.40 1.REALTY BANKEX CD IT FMCG TECk Volatility Index 1.786.222.960.28 6.16 4.06 3.06 5.53 -11.250.569.51 -- -- -- 23.46 1.38 11.127.76 3.

Are you currently satisfied with your share trading? a. no Q7. Do you know about the facilities provided by RELIGARE? a. Derivatives Q3. yes b. Mutual Fund c. no Q5. Are you aware of online share trading? a. India Bulls e. no Q4. Religare b. yes b. no Q2. yes b. Shares b. How often do you trade? 41 . With which company do you have your DEMAT account? a. In which of these Financial Instruments do you invest into? a. ICICI Direct c. Others(please specify)______________ Q6. Bonds d.Q1. Heard about RELIGARE? a. yes b. Kotak Mahindra d.

weekly c. upto10% b. upto 20% c. _______________________________________________ _______ b. daily b. no Q10. What percentage of your earning do you invest in share trading? a. _______________________________________________ ________ d. _______________________________________________ _______ c. _______________________________________________ ________ 42 . monthly d. yearly Q8.a. What more facilities do you think you require with your DEMAT account? a. upto 50% d. Is broking firm is always risk free? a. yes b. above 50% Q9.

of Investors 43 .PREFERENCE OF INVESTMENT Financial Instruments Shares Mutual Fund Bonds Derivatives 37 8 4 1 No.

44 . the most favored investments continues to be in the share market can definitely be increased.derivatives bonds 2% 8% mutual fund 16% shares 74% Interpretation: This show that although the mutual funds market is on the rise yet.

45 .

Awareness of Online Trading YES 45 NO 5 no 10% yes 90% yes no 46 .

Interpretation: With the increase in cyber education. 47 . the awareness towards online trading has increased by leaps and bounds. The awareness is expected to increase in internet education.

Awareness of RELIGARE as a Brand YES 39 NO 11 48 .

YES NO Interpretation: This chart shows that RELIGARE has a reasonable amount of brand awareness in terms of a premier retail 49 .

The company to increase its market share over its competitors should further leverage its brand image. 50 .stock broking company.

Awareness of the facilities provided by RELIGARE YES 42 NO 8 51 .

it is to be noted that the customers are not aware of the facilities provided by the company meaning thereby. the 52 . that.16% 84% YES NO Interpretation: although there is low brand equity among the target audience yet.

53 .company should concentrate towards promotional tools and increase its focus on product awareness rather than brand awareness.

DEMAT Account Market BROKING FIRMS RELIGARE Securities ICICI Direct KOTAK Securities INDIA BULLS Others INVESTORS 11 12 4 10 13 54 .

55 .26% 22% 20% 8% 24% RELIGARE SECURITIES KOTAK SECURITIES OTHERS ICICI DIRECT INDIA BULLS Interpretation:- This shows that even with sufficiently high brand equity. 2. religare ranks second among the Demat account providers. Lack of promotion and unfocussed approach towards product awareness. Non-transparent marketing policies of the company. This is probably because of two reasons : 1.

56 .

Satisfaction level among customers with current Broker YES 46 NO 4 57 .

YES 92% NO 8% YES NO 58 .

has gone beyond only meeting sales targets and generating profile volumes. 59 . It shows that all the competitors are are striving hard not only to woo the customers but also to make them brand loyal by generating customer satisfaction.Interpretation: This chart accentuates the fact that strategic marketing. today .

of Investments 26 13 5 6 60 .Trading Frequency of Trading Daily Weekly Monthly Yearly No.

of Invested 35 9 4 .6 5 26 13 DAILY MONTHLY WEEKLY YEARLY Interpretation: Maximum no. Percentage of Earning Invested in Share Trading % of Earning Invested Upto 10% Upto 25% Upto 50% 61 No. of investors engaged in daily trade.

Above 50% 2 upto 25% upto above 50% 50% upto 10% upto 10% upto 25% upto 50% above 50% Interpretation: This shows that people invest only upto 10% of there earnings in the stock market . again reiterating the volatile and non-transparent structure of the Indian stock market. 62 . Hence .

63 .effective and efficient steps should be under taken to woo the customers to invest more in the lucrative stock market.

Reference www.religaresecurities.com www.com www.com www.com www.tradersedgeindia.bseindia.nseindia.stockmarketindian.religare.com 64 .com www.

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