Project Report On: "Analysis of Share Market With Reference To - Market"
Project Report On: "Analysis of Share Market With Reference To - Market"
Project Report On: "Analysis of Share Market With Reference To - Market"
On
“ANALYSIS OF SHARE MARKET WITH
REFERENCE TO _____ MARKET”
The help I received from different sources in prepration of this report. I m very
grateful to Mr.Nadeem Khan the Assistant manager of the sharekhan limited
lajpat nagar branch for providing me the opportunity to undertake my summer
internship programme in sharekhan limited which is oldest stock exchange in
indirectly have contributed in the development of this work and who have
influenced my thinking behaviour and act during the course of study.
I genuinely offer my sincere regard and heartfelt gratitude towards faculty guide
Ms.Swati Bhatia at every step towards the fulfilment of the project and for her
continuous support and encouragement.
____________
Table of contents
Chapter 1 Introduction
Bibliography
Company Certificate
Chapter 1: Introduction
Commodity Market
India commodity market consists of both the retail and the wholesale market in
the country. The commodity market in India facilitates multi commodity
exchange within and outside the country based on requirements. Commodity
trading is one facility that investors can explore for investing their money. The
India Commodity market has undergone lots of changes due to the changing
global economic scenario; thus throwing up many opportunities in the process.
Demand for commodities both in the domestic and global market is estimated to
grow by four times than the demand currently is by the next five years.
Commodity Trading
Commodity trading is an interesting option for those who wish to diversify from
the traditional options like shares, bonds and portfolios. The Government has
made almost all commodities entitled for futures trading. Three multi
commodity exchanges have been set up in the country to facilitate this for the
retail investors. The three national exchanges in India are:
Multi Commodity Exchange (MCX)
National Commodity and Derivatives Exchange (NCDEX)
National Multi-Commodity Exchange (NMCE)
Commodity trading in India is still at its early days and thus requires an
aggressive growth plan with innovative ideas. Liberal policies in commodity
trading will definitely boost the commodity trading. The commodities and
future market in the country is regulated by Forward Markets commission
(FMC).
Wholesale Market
The wholesale market in India, an important component of the India commodity
market, traditionally dealt with framers and manufacturers of goods. However,
in the present scenario, their roles have changed to a large extent due to the
enormous growth that the economy has witnessed. The lengthy process of
wholesalers buying from manufacturers; then selling it to retailers who in turn
sold it to consumers does not seem feasible today. An improvement in the
transport facility has made the interaction between the retailer and manufacturer
easier; the need for a wholesale market is gradually diminishing.
Retail Market
The retail market in India is currently witnessing a boom. The growth in the
India commodity market is largely attributed to this boom in the retail market.
Policy reforms and liberal government policies have ensured that this sector is
growing at a good pace. Some of the reasons attributed to the growth of retail
sector in India include the large population of the country who has an increased
purchasing power in their hand. Another factor is the heavy inflow of foreign
direct investment in this sector. More than 80% of the retail industry in the
country is concentrated in large cities.
Business development is especially crucial to B2B brands, but even large and
sophisticated organizations don’t always have a biz dev process per se. Instead,
leaders “know it when they see it,” relating it in different degrees to sales,
marketing, or account management.
It’s true that business development has relationships with all those things and
more, but it can also be greater than the sum of its parts. Let’s take a closer look
at the principles that drive successful biz dev divisions and what they really
mean for a company.
Sales
A person or organization expressing an interest in acquiring the offered item of
value is referred to as a potential buyer, prospective customer, or prospect.
Buying and selling are understood to be two sides of the same "coin" or
transaction. Both seller and buyer engage in a process of negotiation to
consummate the exchange of values. The exchange, or selling, process has
implied rules and identifiable stages. It is implied that the selling process will
proceed fairly and ethically so that the parties end up nearly equally rewarded.
The stages of selling, and buying, involve getting acquainted, assessing each
party's need for the other's item of value, and determining if the values to be
exchanged are equivalent or nearly so, or, in buyer's terms, "worth the price".
Sometimes, sellers have to use their own experiences when selling products
with appropriate discounts.
Objectives
REVIEW OF LITERATURE
Gupta (1972) in his book has studied the working of stock exchanges in India
and has given a number of suggestions to improve its working. The study
highlights the' need to regulate the volume of speculation so as to serve the
needs of liquidity and price continuity. It suggests the enlistment of corporate
securities in more than one stock exchange at the same time to improve
liquidity. The study also wishes the cost of issues to be low, in order to protect
small investors
Panda (1980) has studied the role of stock exchanges in India before and after
independence. The study reveals that listed stocks covered four-fifths of the
joint stock sector companies. Investment in securities was no longer the
monopoly of any particular class or of a small group of people. It attracted the
attention of a large number of small and middle class individuals. It was
observed that a large proportion of savings went in the first instance into
purchase of securities already issued.
Gupta (1981) in an extensive study titled `Return on New Equity Issues' states
that the investment performance of new issues of equity shares, especially those
of new companies, deserves separate analysis. The factor significantly
influencing the rate of return on new issues to the original buyers is the `fixed
price' at which they are issued. The return on equities includes dividends and
capital appreciation. This study presents sound estimates of rates of return on
equities, and examines the variability of such returns over time.
Jawahar Lal (1992) presents a profile of Indian investors and evaluates their
investment decisions. He made an effort to study their familiarity with, and
comprehension of financial information, and the extent to which this is put to
use. The information that the companies provide generally fails to meet the
needs of a variety of individual investors and there is a general impression that
the company's Annual Report and other statements are not well received by
them.
L.C.Gupta (1992) revealed the findings of his study that there is existence of
wild speculation in the Indian stock market. The over speculative character of
the Indian stock market is reflected in extremely high concentration of the
market activity in a handful of shares to the neglect of the remaining shares and
absolutely high trading velocities of the speculative counters. He opined that,
short- term speculation, if excessive, could lead to "artificial price". An artificial
price is one which is not justified by prospective earnings, dividends, financial
strength and assets or which is brought about by speculators through rumours,
manipulations, etc. He concluded that such artificial prices are bound to crash
sometime or other as history has repeated and proved.
Nabhi Kumar Jain (1992) specified certain tips for buying shares for holding
and also for selling shares. He advised the investors to buy shares of a growing
company of a growing industry. Buy shares by diversifying in a number of
growth companies operating in a different but equally fast growing sector of the
economy. He suggested selling the shares the moment company has or almost
reached the peak of its growth. Also, sell the shares the moment you realise you
have made a mistake in the initial selection of the shares. The only option to
decide when to buy and sell high priced shares is to identify the individual merit
or demerit of each of the shares in the portfolio and arrive at a decision.
Pyare Lal Singh (1993) in the study titled, Indian Capital Market - A
Functional Analysis, depicts the primary market as a perennial source of supply
of funds. It mobilises the savings from the different sectors of the economy like
households, public and private corporate sectors. The number of investors
increased from 20 lakhs in 1980 to 150 lakhs in 1990 (7. 5 times). In financing
of the project costs of the companies with different sources of financing, the
contribution of the securities has risen from 35.01% in 1981 to 52.94% in 1989.
In the total volume of the securities issued, the contribution of debentures /
bonds in recent years has increased significantly from 16. 21% to 30.14%.
Amanulla & Kamaiah (1995) conducted a study to examine the Indian stock
market efficiency by using Ravallion co integration and error correction market
integration approaches. The data used are the RBI monthly aggregate share
indices relating five regional stock exchanges in India, viz Bombay, Calcutta,
Madras, Delhi, Ahmedabad during 1980-1983. According to the authors, the co
integration results exhibited a long-run equilibrium relation between the price
indices of five stock exchanges and error correction models indicated short run
deviation between the five regional stock exchanges. The study found that there
is no evidence in favour of market efficiency of Bombay, Madras, and Calcutta
stock exchanges while contrary evidence is found in case of Delhi and
Ahmedabad.
Pattabhi Ram.V. (1995) emphasised the need for doing fundamental analysis
and doing Equity Research (ER) before selecting shares for investment. He
opined that the investor should look for value with a margin of safety in relation
to price. The margin of safety is the gap between price and value. He revealed
that the Indian stock market is an inefficient market because of the absence of
good communication network, rampant price rigging, and the absence of free
and instantaneous flow of information, professional broking and so on. He
concluded that in such inefficient market, equity research will produce better
results as there will be frequent mismatch between price and value that provides
opportunities to the long-term value oriented investor. He added that in the
Indian stock market investment returns would improve only through quality
equity research.
Madhusudan (1998) found that BSE sensitivity and national indices did not
follow random walk by using correlation analysis on monthly stock returns data
over the period January 1981 to December 1992.
Suresh G Lalwani (1999) emphasised the need for risk management in the
securities market with particular emphasis on the price risk. He commented that
the securities market is a 'vicious animal' and there is more than a fair chance
that far from improving, the situation could deteriorate.
Bhanu Pant and Dr. T.R.Bishnoy (2001) analyzed the behaviour of the daily
and weekly returns of five Indian stock market indices for random walk during
April 1996 to June 2001.They found that Indian Stock Market Indices did not
follow random walk.
Nath and Verma (2003) examine the interdependence of the three major stock
markets in south Asia stock market indices namely India (NSE-Nifty) Taiwan
(Taiex) and Singapore (STI) by employing bivariate and multivariate co
integration analysis to model the linkages among the stock markets, No co -
integration was found for the entire period (daily data from January 1994 to
November 2002).They concluded that there is no long run equilibrium.
Juhi Ahuja (2012) presents a review of Indian Capital Market & its structure. In
last decade or so, it has been observed that there has been a paradigm shift in
Indian capital market. The application of many reforms & developments in
Indian capital market has made the Indian capital market comparable with the
international capital markets. Now, the market features a developed regulatory
mechanism and a modern market infrastructure with growing market
capitalization, market liquidity, and mobilization of resources. The emergence
of Private Corporate Debt market is also a good innovation replacing the
banking mode of corporate finance. However, the market has witnessed its
worst time with the recent global financial crisis that originated from the US
sub-prime mortgage market and spread over to the entire world as a contagion.
The capital market of India delivered a sluggish performance.
RESEARCH METHODOLOGY
INTRODUCTION
Research Methodology refers to search of knowledge .one can al. define
research methodology as a scientific and systematic search for required
information on a specific topic. The word research methodology comes from the
word wadvance learner 's dictionary meaning a research as a careful
investigation or inquiry especially through research for new facts in my branch
of knowledge for example .me author have define research methodology as
systematized effort to gain new Icnowledge. Methodology of the project starts
with —
In the first phase we are trained and they teach us different things about
market
After that they conduct a mock viva, in this they ask about the real life
problem faced by the customers.
They provide leads and after that we malce calls.
Then after that we have to provide details of product and convince diem.
Then we have to visit them and get the formed filled from them.
Maintaining dairy of clients and contacting them at regular basis.
Get the knowledge of technical as well as fundamental methods.
Observe the patterns of die scripts.
Exploratory Research
Exploratory research is a type of research conducted beceause a problem has not
been clearly defined. Exploratory research helps determine the best research
design , data collection method and selection of subjects. Given its fundamental
measure exploratory research often concludes that a perceived problem does not
actually exist.
Research is exploratory when you use no earlier model as a basis of your study.
The most usual reason for using this approach is that ypu have no other choice .
Normally you would like to take an earlier theory as a support, but there
perhaps is none, or all available models come from wrong contexts.
Exploratory research means that hardly anything anything is known about the
matter at the outset of the project. You then have to begin with a rather vague
impression of what you should study , and it is also impossible to make a
detailed work plan in advance.
Simplification of observations
Interpretation of results (or “ solving the enigma”)
“ solving the enigma” does not always mean answering exactly those
questions that were asked at the outset of the project . Sometimes the most
interesting questions are found at the end of the research , when the
researcher has become an expert on the subject. It often said that “ data teach
the researcher”.
In dealing with real life problem it is often found that data at hand are
inadequate, and hence ,it becomes necessary to collect data that is appropriate .
There are several ways of collecting the appropriate data which differ
considerably in context of money costs, time and other resources at the disposal
of the researcher.
The data collection for this study was done in the following manner:
Through questionnaire:
Information to find out the investment potential and goal was found out through
questionnaires.
Through tele-calling:
Common sources of secondary data for social science include censuses, large
surveys, and organizational records. In sociology primary data is data you have
collected yourself and secondary data is data you have gathered from primary
sources to create new research. In terms of historical research, these two terms
have different meanings. A primary is a book or set of archival records. A
secondary source is a summary of a book or set of records.
There are two different types of sources that need to be established in order to
conduct a good analysis. The first type is a primary source which is the initial
material that is collected during the research process. Primary data is the data
that the researcher is collecting themselves using methods such as surveys,
direct observations, interviews, as well as logs (objectives data sources).
Primary data is a reliable way of collect data because the researcher will know
where it came from and how it will collected and analyzed since they did it
themselves. Secondary sources on the other hand are sources that are based
upon the data that was collected from the primary source.
Secondary sources take the role of analyzing, explaining , and combining the
information from the primary source with additional information. Secondary
data analysis is commonly known as second –hand analysis. It is simply the
analysis of pre-existing data in a different way or to answer a different question
than originally intended. Secondary data analysis utilizes the data that was
collected by someone else in order to further a study that you are interested in
completing . Common sources of secondary data are social science surveys and
data from government agencies , including the Bureau of the Census , the
Bureau of Labor Statistics and various other agencies. The data collected is
most often collected via survey research methods. Data from experimental
studies may also be used.
Globally , there are many sources available . These sources can arrive from the
data arranged by governmental and private organizations, to data collected by
any social researcher.
Secondary data analysis is a growing tool in our modern day society . Social
scientists have the opportunity to explore massive amounts of secondary data .
Secondary data analysis consists of collecting data that was compiled through
researcher by another person and using that data to get a better understanding of
a concept . A good way to begin your research using secondary data that you are
collecting to further support your concept is to clearly define the goals of your
research and the design that you anticipate using. An important thing to
remember when defining your plan is to ensure that you have established what
kind of data you plan on using for your research and the exact goal. Establishing
what type of research design is an important component . In terms of using
secondary data for research it helps to creats an outline of what the final product
will look like consisting of all the type of data to be used along with a list of
sources that were used to compile the research . I n order to use secondary data
three steps must be completed :
Locating the data can be easily done with the advancements of searching
sources online. However, people need to be aware of the details when searching
online since pages can be out of data or poorly put together.
Therefore , use caution and pay attention to whether it is a reliable data source
online and check when the last update was. To evaluate the data a researcher
must carefully examine the secondary data they are considering to ensure that it
meets their needs and purpose of study. The person must look at the population
and what the sample strategy and type were it is also important to look at when
the data was collected , how it was collected, how it was coded and edited ,
along with the operational definitions of measures that were used. Finally , the
data must be verified to ensure good quality material to be used in new research.
Determining the type of data and information needed to conduct analysis
Data and information collection for secondary data analysis will depend entirely
upon the subject that is central to the focal point of the study . The purpose of
conducting secondary data analysis is to further develop an improved
understanding of the subject matter at hand. Some important types of data and
information that should be collected and summarized include demographic
information , information gathered by government agencies (i.e. the census),
and social science surveys . There is also the possibility of reanalyzing data that
was collected in experimental studies or data collected with qualitative
measures that can be applied in secondary data analysis. The most important
components is to ensure that the information and data being collected needs to
relate to the subject of study .
In secondary data analysis , most individuals who do not have much experience
in research training or technical expertise can be trained accordingly. However ,
this advantage is not without difficulty as the individual must be able to judge
the quality of the data or information that has been gathered . These key tips
will assist you in assessing the quality of the data : Determine the original
purpose of the data collection , attempt to discover the credential of sources or
authors of the information , consider if the document is a primary or secondary
sources , verify that the source well – referenced , and finally find out the : data
of the publication ; the intended audience , and coverage of the report or
document.
LIMITATIONS
Chapter 2 :
Profile Of the Organization (Sharekhan Limited)
Sharekhan is one of the top retail brokerage houses in India with a strong online
trading platform. The company provides equity based products (research,
equities,derivatives, depository, margin funding, etc.). It has one of the largest
networks in the country with 1200+ share shops in 400 cities and India‟s
premier online trading portal www.sharekhan.com. With their research
expertise, customer commitment and superior technology, they provide
investors with end-to-end solutions in investments.
They provide trade execution services through multiple channels - an Internet
platform, telephone and retail outlets.
Sharekhan was established by Morakhia family in 1999-2000 and Morakhia
family,continues to remain the largest shareholder. It is the retail broking arm of
the Mumbai-based SSKI [SHRIPAL SHEWANTILAL KANTILAL
ISWARNATH LIMITED] Group. SSKI which is established in 1930 is the
parent company of Sharekhan ltd. With a legacy of more than 80 years in the
stock markets, the SSKI group ventured into institutional broking and corporate
finance over a decade ago.
Presently SSKI is one of the leading players in institutional broking and
corporate finance activities. Sharekhan offers its customers a wide range of
equity related services including trade execution on BSE, NSE, and Derivatives.
Depository services, online trading, Investment advice, Commodities, etc.
Sharekhan Ltd. is a brokerage firm which is established on 8th February 2000
and now it is having all the rights of SSKI. The company was awarded the 2005
Most Preferred Stock Broking Brand by Awaaz Consumer Vote. It is first
brokerage Company to go online. The Company's online trading and investment
site -www.Sharekhan.com - was also launched on Feb 8, 2000. This site gives
access to superior content and transaction facility to retail customers across the
country. Known for its jargon-free, investor friendly language and high quality
research, the contentrich and research oriented portal has stood out among its
contemporaries because of its steadfast dedication to offering customers best-of-
breed technology and superior market information.
Sharekhan has one of the best states of art web portal providing fundamental
and statistical information across equity, mutual funds and IPOs. One can surf
across 5,500 companies for in-depth information, details about more than 1,500
mutual fund schemes and IPO data. One can also access other market related
details such as board meetings, result announcements, FII transactions,
buying/selling by mutual funds and much more.
Sharekhan's management team is one of the strongest in the sector and has
positioned Sharekhan to take advantage of the growing consumer demand for
financial services products in India through investments in research, pan-Indian
branch network and an outstanding technology platform. Further, Sharekhan's
lineage and relationship with SSKI Group provide it a unique position to
understand and leverage the growth of the financial services sector. We look
forward to providing strategic counsel to Sharekhan's management as they
continue their expansion for the benefit of all shareholders.
SSKI Corporate Finance Private Limited (SSKI) is a leading India-based
investment bank with strong research-driven focus. Their team members are
widely respected for their commitment to transactions and their specialized
knowledge in their areas of strength. The team has completed over US$5 billion
worth of deals in the last 5 years - making it among the most significant players
raising equity in the Indian market.
SSKI, a veteran equities solutions company has over 8 decades of experience in
the Indian stock markets.
If we experience their language, presentation style, content or for that matter the
online trading facility, we'll find a common thread; one that helps us make
informed decisions and simplifies investing in stocks. The common thread of
empowerment is what Sharekhan's all about.
"Sharekhan has always believed in collaborating with like-minded Corporate
into forming strategic associations for mutual benefit relationships" says Jaideep
Arora,Director - Sharekhan Limited.
Sharekhan is also about focus. Sharekhan does not claim expertise in too many
things.
Sharekhan's expertise lies in stocks and that's what he talks about with authority.
So when he says that investing in stocks should not be confused with trading in
stocks or a portfolio-based strategy is better than betting on a single horse, it is
something that is spoken with years of focused learning and experience in the‟
stock markets. And these beliefs are reflected in everything Sharekhan does for
us! Sharekhan is a part of the SSKI group, an Indian financial services power
house, with strong presence in Retail equities Institutional equities Investment
banking.
In Ahmedabad, It is having the branch at Dynamic house, opp. Child care
hospital, Navrangpura road and over 40 franchisees in Ahmedabad. We have
been given the centre at Navrangpura road, Ahmedabad.
Chapter 3: Analysis and Interpretation of Data
Chapter 4 : Conclusion and Recommendations
On the basis of the study it is found that Sharekhan Ltd is better services
provider than the other stockbrokers because of their timely research and
personalized advice on what stocks to buy and sell. Sharekhan Ltd provide the
facility of trade tiger as well as relationship manager facility for
encouragement and protect the interest of the investors. It also provides the
information through the internet and mobile alerts that what IPO’s are coming
in the market and it also provides its research on the future prospects of the
IPO.
Study also concludes that people are not much aware of commodity market
and while its going to be biggest market in India.
The company should also organize seminars and similar activities to enhance
the knowledge of prospective and existing customers , so that they feel more
comfortable while investing in the stock market.
Recommendations
MORE BRANCHES
LESS TIME
They should try to make some arrangements to reduce account opening time by
verifying documents at branch it selves.
LINK-BANK A/Cs
Need to tie up with major banks like SBI ,Allahabadh bank , BOI etc.
CUSTOMER SATISFACTION
The company should focus on the customer satisfaction not on just taking
money from their pocket.
CONTROLLED BRANCHES
The company would have to make some arrangements to control branches and
make standardized procedures for all of them for their better control and
performance appraisal.
Some promotional activities are required for the awareness of the customer
Bibliography
https://www.google.com
Sharekhan - Wikipedia