Ch sovan krishna patro,idbi

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  • 1. 1 A Summer internship project report On “Capital-market trend analysis using the concept of Regression Analysis & Comparative study of top broking houses with IDBI-capital” At IDBI bank Submitted in the partial fulfillment for the award of the degree of PGDBM (Praxis Business School, Kolkata) Submitted by Ch Sovan Krishna Patro Batch 2012-14 Under the supervision and guidance of Mr. Dinesh Sahu AGM-IDBI Bank Saheed Nagar, Bhubaneswar
  • 2. 2 Preface The successful completion of this project was a unique experience for us because by visiting many place and interacting various person, I achieved a better knowledge about this project. The experience which I gained by doing this project was essential at this turning point of my carrier this project is being submitted which content detailed analysis of the research under taken by me. The research provides an opportunity to the student to devote her skills knowledge and competencies required during the technical session. The research is on the topic “Capital-market trend analysis using the concept of Regression Analysis & Comparative study of top broking houses with IDBI-capital”
  • 3. 3 Acknowledgement A project is never the work of an individual. It is moreover a combination of ideas, suggestions, review, contribution and work involving many folks. It cannot be completed without guide lines. It is my pleasure to acknowledge gratefully to all those honorable personalities who helped me a lot into the creation of this project and shared their experiences. I would like to express my sincere indebtedness to Praxis Business School, Kolkata For giving me the opportunity to work on this project and make it a success. I would like to express my deep sense of gratitude to my Industry guide, Mr. Dinesh Sahu, AGM–IDBI Bank, Saheed Nagar, Bhubaneswar, Who spent his valuable time and guided me. I have benefited a great deal from his incisive analysis and erudite suggestions. The atmosphere of a learning organization that he has created along with his peers in Saheed Nagar Branch has not only helped me but all the other trainees. Acknowledgements are also due to all the other staff members and executives in I D B I c a p i t a l f o r p r o v i d i n g i n f o r m a t i o n a t various point of the project, especially the discussions on the market. I am also sincerely thankful to all the faculty members of Praxis Business School for providing their help and advice whenever it was needed. Finally I wish to extend my sincere acknowledgement to my parents for their moral and financial support.
  • 4. 4 Certificate of completion (Who so ever it may concern) This is certify that the project report entitled “Capital-market trend analysis using the concept of Regression Analysis & Comparative study of top broking houses with IDBI-capital” Carried at IDBI bank Bhubaneswar a certified work done by Mr. Ch Sovan Krishna Patro, a student of PRAXIS BUSINESS SCHOOL, Kolkata and submitted the same in the partial fulfillment for the award of the degree of PGDBM has done his summer internship program under my guidance from 12th April 2013 to 12th June 2013. I found him to be good in the task and activities assigned him. I wish his success in all future endeavors. (Industry guide)
  • 5. 5 Declaration I hereby declare that the report titled “Capital-market trend analysis using the concept of Regression Analysis & Comparative study of top broking houses with IDBI-capital” is prepared by me .I submit the same as partial fulfillment of my course requirement of praxis business school, Kolkata. This is my original piece of work done under guidance of Mr. Dinesh Sahu, AGM,IDBI bank, Saheed nagar, Bhubaneswar. This is my own creation and has not been submitted by anyone before. Ch Sovan Krishna Patro Praxis business school Kolkata
  • 6. 6 Table of content Sl.no particulars Page no 1 Capital market 8 2 Analysis of capital market trend using the concept of Regression analysis 22 3 Idbi-capital & Competitors 52 4 Comparison with competitors 68 5 Questionnaires 73 6 Summary of the questionnaires 81 7 Recommendations 105 8 The Importance of Capital Market for the Economic Development of India 106
  • 7. 7 Executive summary Conceptually the mechanism of stock market is very simple. People who are exposed to the same risk come together and agree that if anyone of the person suffers a loss the other will share the loss and make good to the person who lost. The initial part of the project focuses on the job and responsibilities I was allotted as a summer trainee. It also makes the readers aware about the techniques and methodology used to bring this report alive. It also describe about the objective of this study. It p r o v i d e s k n o w l e d g e t o t h e r e a d e r s r e g a r d i n g t h e c a p i t a l m a r k e t t r e n d w h i c h i s a n a l y z e d b y t h e R e g r e s s i o n A n a l y s i s c o n c e p t , t h e Products & brokerages, the company ( I D B I ) offers and the reasons why someone should associate with it. Also it gives special emphasis on the competitors. The readers can also find the comparative analysis between different broking firms along with IDBI capital. The next part of the project throws light upon my findings and analysis about the company and the suggestions for the company for better performance.
  • 8. 8 Research objectives To analyze the capital market-trend using the concept of Regression analysis To compare top broking houses with Idbi-capital To know the difference between the myth & the truth of Idbi-capital from the traders from various point of view To recommend some findings for the betterment of the company
  • 9. 9 Capital market The capital market is the market for securities, where Companies and governments can raise long-term funds. It is a market in which money is lent for periods longer than a year. A nation's capital market includes such financial institutions as banks, insurance companies, and stock exchanges that channel long-term investment funds to commercial and industrial borrowers. Unlike the money market, on which lending is ordinarily short term, the capital market typically finances fixed investments like those in buildings and machinery. Nature and Constituents: The capital market consists of number of individuals and institutions (including the government) that canalize the supply and demand for long term capital and claims on capital. The stock exchange, commercial banks, co-operative banks, saving banks, development banks, insurance companies, investment trust or companies, etc., are important constituents of the capital markets. The capital market, like the money market, has three important Components, namely the suppliers of loanable funds, the borrowers and the Intermediaries who deal with the leaders on the one hand and the Borrowers on the other. The demand for capital comes mostly from agriculture, industry, trade the government. The predominant form of industrial organization developed Capital Market becomes a necessary infrastructure for fast industrialization. Capital market not concerned solely with the issue of new claims on capital, But also with dealing in existing claims. + DEBT OR BOND MARKET EQUITY MARKET CAPITAL MARKET
  • 10. 10 Debt or bond market The bond market (also known as the debt, credit, or fixed income market) is a financial market where participants buy and sell debt securities, usually in the form of bonds. References to the "bond market" usually refer to the government bond market, because of its size, liquidity, lack of credit risk and, therefore, sensitivity to interest rates. Because of the inverse relationship between bond valuation and interest rates, the bond market is often used to indicate changes in interest rates or the shape of the yield curve. Types of bond markets The Securities Industry and Financial Markets Association (SIFMA) classify the broader bond market into five specific bond markets. · Corporate · Government & agency · Municipal · Mortgage backed, asset backed, and collateralized debt obligation · Funding Bond market participants Bond market participants are similar to participants in most financial markets and are essentially either buyers (debt issuer) of funds or sellers (institution) of funds and often both. Participants include: · Institutional investors · Governments · Traders · Individuals Equity or stock market In its simplest sense, stock market or equity market is a trading place where people buy or sell shares, other securities or derivatives of public limited companies or limited companies. Further, it is a place where public guesses the movement in prices of shares and would try to make profit by selling or buying. In reality, this definition of stock market does not tell the real underlying phenomenon on why people trade shares. In the first place the stock market is a virtual place where people exchange securities which companies float for raising funding for running or expansion of their companies in the form of shares or debentures or both. Sometimes virtual form of instruments that relate them to companies‟ assets and fundamentals are also traded. All these products are intangible and the only physical form it can display is the share certificate either in paper forms (in earlier days) and now mostly seen dematerialized form or popularly known as “Demat” form held in your trading account. One of finest feature of the stock market is that it is a place where you would be able to find from small investors, trying to speculate stock prices for profitability, to specially floated finance companies and mutual funds managers risking large capital assets for making money.
  • 11. 11 An introduction to the Indian stock market Mark Twain once divided the world into two kinds of people:” Those who have seen the famous Indian monument, the TajMahal, and those who haven't”. The same could be said about investors. There are two kinds of investors: those who know about the investment opportunities in India and those who don't. India may look like a small dot to someone in the U.S., but upon closer inspection, you will find the same things you would expect from any promising market. Here we'll provide an overview of the Indian stock market and how interested investors can gain exposure. The BSE and NSE Most of the trading in the Indian stock market takes place on its two stock exchanges: the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The BSE has been in existence since 1875. The NSE, on the other hand, was founded in 1992 and started trading in 1994. However, both exchanges follow the same trading mechanism, trading hours, settlement process, etc. Almost all the significant firms of India are listed on both the exchanges. Both exchanges compete for the order flow that leads to reduced costs, market efficiency and innovation. The presence of arbitrageurs keeps the prices on the two stock exchanges within a very tight range. Trading Mechanism Trading at both the exchanges takes place through an open electronic limit order book, in which order matching is done by the trading computer. There are no market makers or specialists and the entire process is order-driven, which means that market orders placed by investors are automatically matched with the best limit orders. As a result, buyers and sellers remain anonymous. The advantage of an order driven market is that it brings more transparency, by displaying all buy and sell orders in the trading system. However, in the absence of market makers, there is no guarantee that orders will be executed. All orders in the trading system need to be placed through brokers, many of which provide online trading facility to retail customers. Institutional investors can also take advantage of the direct market access (DMA) option, in which they use trading terminals provided by brokers for placing orders directly into the stock market trading system. Settlement Cycle and Trading Hours Equity spot markets follow a T+2 rolling settlement. This means that any trade taking place on Monday, gets settled by Wednesday. All trading on stock exchanges takes place between 9:15 am and 3:30 pm, Indian Standard Time (+ 5.5 hours GMT), Monday through Friday. Delivery of shares must be made in dematerialized form, and each exchange has its own clearing house, which assumes all settlement risk, by serving as a central counterparty. Market Indexes The two prominent Indian market indexes are Sensex and Nifty. Sensex is the oldest market index for equities;
  • 12. 12 it includes shares of 30 firms listed on the BSE, which represent about 45% of the index's free-float market capitalization. It was created in 1986 and provides time series data from April 1979, onward. Another index is the S&P CNX Nifty; it includes 50 shares listed on the NSE, which represent about 62% of its free-float market capitalization. It was created in 1996 and provides time series data from July 1990, onward some of the sectorial indices are Auto, Bankex, Fmcg, IT, PSU, Metal Etc. Market regulation The overall responsibility of development, regulation and supervision of the stock market rests with the Securities & Exchange Board of India (SEBI), which was formed in 1992 as an independent authority. Since then, SEBI has consistently tried to lay down market rules in line with the best market practices. It enjoys vast powers of imposing penalties on market participants, in case of a breach. Who can invest in India? India started permitting outside investments only in the 1990s. Foreign investments are classified into two categories: foreign direct investment (FDI) and foreign portfolio investment (FPI). All investments, in which an investor takes part in the day-to-day management and operations of the company, are treated as FDI, whereas investments in shares without any control over management and operations are treated as FPI. For making portfolio investment in India, one should be registered either as a foreign institutional investor (FII) or as one of the sub-accounts of one of the registered FIIs. Both registrations are granted by the market regulator, SEBI. Foreign institutional investors mainly consist of mutual funds, pension funds, endowments, sovereign wealth funds, insurance companies, banks, asset management companies etc. At present, India does not allow foreign individuals to invest directly into its stock market. However, high-net- worth individuals (those with a net worth of at least $US50 million) can be registered as sub-accounts of an FII. Foreign institutional investors and their sub accounts can invest directly into any of the stocks listed on any of the stock exchanges. Most portfolio investments consist of investment in securities in the primary and secondary markets, including shares, debentures and warrants of companies listed or to be listed on a recognized stock exchange in India. FIIs can also invest in unlisted securities outside stock exchanges, subject to approval of the price by the Reserve Bank of India. Finally, they can invest in units of mutual funds and derivatives traded on any stock exchange An FII registered as a debt-only FII can invest 100% of its investment into debt instruments. Other FIIs must invest a minimum of 70% of their investments in equity. The balance of 30% can be invested in debt. FIIs must use special non-resident rupee bank accounts, in order to move money in and out of India. The balances held in such an account can be fully repatriated. Restrictions/investment ceilings
  • 13. 13 The government of India prescribes the FDI limit and different ceilings have been prescribed for different sectors. Over a period of time, the government has been progressively increasing the ceilings. FDI ceilings mostly fall in the range of 26-100%. By default, the maximum limit for portfolio investment in a particular listed firm is decided by the FDI limit prescribed for the sector to which the firm belongs. However, there are two additional restrictions on portfolio investment. First, the aggregate limit of investment by all FIIs, inclusive of their sub-accounts in any particular firm, has been fixed at 24% of the paid-up capital. However, the same can be raised up to the sector cap, with the approval of the company's boards and shareholders. Secondly, investment by any single FII in any particular firm should not exceed 10% of the paid-up capital of the company. Regulations permit a separate 10% ceiling on investment for each of the sub-accounts of an FII, in any particular firm. However, in case of foreign corporations or individuals investing as a sub-account, the same ceiling is only 5%. Regulations also impose limits for investment in equity-based derivatives trading on stock exchanges. The bottom line Emerging markets like India are fast becoming engines for future growth. Currently, only a very low percentage of the household savings of Indians are invested in the domestic stock market, but with GDP growing at 7-8% annually and a stable financial market, we might see more money joining the race. Maybe it's the right time for outside investors to seriously think about joining the India band wagon The emergence of e-broking in India The Indian trader is being fancied by the democratized world of online trading or also known as e- broking. The regular and attractive advertisements in the print media and electronic media have added to this fancy world. But as we compare to the Western countries, in India online trading has not still grasped the market, but has done a very important amount of progress in the past years and the future of online trading is bright. That is why many new companies are coming into this form of business structure and the existing companies are changing to this new format besides offline and other traditional forms of business. With only a mere share of 10% online trading a combined gross turnover of around Rs.9000-10,000 crores handled by the BSE and NSE together there is a much greater scope for online trading. At present some of the dominant players in the online trading market of share market are – 1. Sharekhan.com 2. Icicidirect.com 3. Idbi capital 4. 5paisa.com 5. India bulls 6. Kotak Securities 7. Motilal Oswal 8. Geojit Securities
  • 14. 14 9. Angel Trade 10. Reliance Money 11. Religare 12. Karvy 13. IL&FSEarlier The share market was not safe enough to invest but some of the changes in the past ten years in the Indian share market have created the interest of trading in the shares by the people. Broadly we can classify three important factors which have contributed to the development of online trading in India- 1. Firstly the major step was taken by the National Stock Exchange (NSE) in the year 1994 which allowed the electronic trading and seeing to this various other stock exchanges in India followed soon. This helped in making the fast, accurate and transparent transactions saving a lot of time then the traditional method of trading. The investors were also saved by the clutches of the fraud brokers at the times when the clients were not aware of the true prices of the shares. 2. Secondly, in the year 1996 the dematerialization of the shares came (also known as DEMAT) which avoided the online presence of shares in an electronic form avoiding them from theft, pilferage or from other losses like counterfeiting and frauds regarding share transfer. 3. The third reason was the rapid growth of computer education and learning of internet by the people. With the evolving of internet the online trading became a hit and the investors became confident in investing just with a click of a mouse. With the happening of such events the ratio of trading has improved a lot. As it takes less time people praise this technology for trading purposes. Some people who traded rarely now even trades 2-3 times every day as it provides edge of researching about companies on the internet. The number of small investors is increasing on the daily basis that trades on the internet. If a person invests or trades in equities, derivatives, commodities etc through the use Internet it is known as online trading enabling the investor to connect electronically to buy or sell stocks, derivatives etc. with the other investors. This can be done with the help of online service providers like Sharekhan.com, ICICI Direct.com etc. A person can access a stockbroker's website through a PC connected to Internet and can place his orders. The benefits are-  A person can see the latest market movement through streaming quotes  Reduces time lag due to self-execution and instant confirmation  Empowers traders to have a complete control over their trading decisions  A person can access his accounts and related information on the website  Provides greater convenience of trade as a person can trade from home or other convenient location  It is cheap in terms of cost associated and offers reduction in overheads  A trader cab]n view the historical charts on his computer The Internet revolution has changed the way to communicate and the way to do business in today‟s society bringing us closer and closer to vital sources of information. It provides us with means to directly interact with service-oriented computer systems tailored to our specific needs; therefore, we can serve ourselves better by making our own decisions. This new access by the online trading customers to low-cost transactions and
  • 15. 15 cutting-edge, real-time market information that formerly belonged only to brokers has opened up extraordinary new investment opportunities as well as a crucial need for state-of-the-art information. Today the investors use the Internet Client-Server technology to buy and sell the securities at an instant at any point of time. People investing online have reached the proportions. Online trading allows an investor to buy and sell shares on the exchange through Internet and helps in the direct control of his investments. The data of the startup dates by some of the brokers in India are shown below Launch date Share khan Feb-2000 Invest mart Feb-2000 Geojit Securities Feb-2000 ICICI Direct Apr-2000 IDBI Capital July-2000 Kotak securities Aug-2000 Anand Rathi Direct Sep-2000 Online trading infrastructure The emergence of online exchanges has facilitated faster transactions by providing online trading portals and brokerage houses ease and flexibility. The Internet has in deed opened up newopportunities for conducting the business. The worldwide stock exchanges has made a major shift from the traditional method of trading and now conduct a bulk of its business online through its brokers and partners. In the developed countries majorly all the exchange transactions are conducted online. The trend took off slowly in India and the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) two of the largest exchanges in India have been conducting online trade successfully for some time. Why online trading entered late in India? The Indian exchanges and brokering houses have been very slow in moving their transactions online and the major reason has been the lot government regulations. The initial delay was due to laying down the specifications for creating Closed User Groups (CUGs). This issue was resolved between the Department of Telecommunications (DoT) and the Finance Ministry around 1998, after that soon introduction of online trading portals like ICICI direct.com, motililoswal.com, sharekhan.com etc. Connectivity related issue was perhaps the most important technological factor. Traditionally the cost of leased lines and VSAT links has been very high and the reliability of the links was very low. To commission the links it took a long time as one had to make an application and wait for a few weeks for the link to be up and running. Many other issues like security, backup and recovery
  • 16. 16 procedural costs also acted as deterrents in the process. Now with the resolution of regulatory issues India no longer have any pressing connectivity and band with issues. The entry of private players into the broadband scenario and the government opening up the telecom sector these issues have become almost non-existent. Security solutions and services available in the market have matured and it doesn't cost a pretty packet anymore to put a simple backup solution in place. Through online trading everyday large volumes of data is being transacted. To control Online Trading RBI made regulations making it mandatory for companies to store at least 7 years of transactional and financial data. 1. Design needs to be always-on, secure, redundant, and have adequate backup and recovery processes. 2. For such high amounts of critical data it's natural to deploy network-based storage like NAS or SAN. 3. Security is a vital and integral part of the design architecture. The hardware and software elements should be built around layered security architecture and should be held in place with a well-documented security policy. 4. Ideally online exchanges should have 'five-nine' availability. 5.It's difficult to deploy out-of-the-box applications at exchanges as each has a unique architecture based on factors like operations flow, trading volumes, number of members, number of users , and number of locations. 6. NSE has deployed NIBIS (NSE's Internet Based Information System) for real-time dissemination of trading information over the Internet and NEAT a client-server-based application to help its operations. 7. BSE has deployed an On Line Trading system (BOLT) on a Tandem platform which has two-tier architecture. It claims to be able to support up to 2 million trades a day Recommendations of SEBI The SEBI has also played an important role in the issue of the guidelines regarding online trading so that the chances of fraud and misrepresentation are minimized. Some of recommendations are as follows: 1. The stock brokers which are being registered with Securities Exchange Board of India (SEBI) will have to apply to stock exchanges for a formal permission. The following conditions must befulfilled-1. The online trading company must have a minimumnetworth of Rs50 lakh 2. The encryptiontechnology should be there in the system used by the brokers to ensure the provision for confidentiality ,security ,justifiability and reliability of data .The user id, first level and second level password, automatic expiry of passwords at the end of a reasonable period, secured socket level security for server access through Internet, suitable firewalls between the trading set-up directly connected to an exchange trading
  • 17. 17 system and the Internet trading set-up, microprocessor-based Smart cards, dynamic password, 64 bit/128- bit encryption are the basic minimum security standards. 3. The brokers must maintain adequateback-upsystemsanddatastoragecapacity which must be checked by the stock exchanges. 4. The minimumqualification must be laid down by the stock exchange to ensure that the persons hired by the brokers must have the proper qualification regarding trading so as to guide the clients and he can communicate regarding trading instructions. 5. To handle contingency situations and for review of incoming and outgoing electronic correspondence the respective stock exchange mustdevelopuniformwrittenrules,regulationsand procedures. 6. To ensure the authenticity and accuracy of data a certification agency must be appointed using the certification technologies when notified by the government or the SEBI. 7. The better client and the broker relationship to be maintained. 8. To determine the risk associated with the clients the brokers must have the have sufficient verifiable information about clients and the stock exchange must ensure it. 9. The clients must be taken into an agreement stating about all the obligations and rights including the minimum service standards to be maintained by the service provider broker for services specified by SEBI/exchanges for Internet-based trading from time to time. 10. The web site of the broker providing the online trading facility should contain information rules and regulations affecting client broker relationship, arbitration rules, investor protection rules, etc. meant for investor protection. It should also provide and display prominently hyper link to the website/page on the web site of the relevant stock exchange(s) displaying rules/ regulations/circulars. Ticker/quote/order book displayed on the web site of the broker should display the time stamp as well as the source of such information. 11. An e-mail should be sent to the investor for the confirmation of his Order or trade. 12. The limits of trading and exposure provided to the client must be set on system-based control and brokers and exchanges must ensure it. The limits must be predefined by the broker on the exposure and turnover of each client. The system of broker should be such that it is capable of assessing the risk of the client as soon as the order comes in. The system should inform the clients client the reports on margin requirements, payment and delivery obligations etc. 13. As per the regulations the Contract Notes must be issued to clients within 24 hours of the trade execution. 14. Cross trades of the clients will not be allowed with each other to the brokers using Internet- based systems for routing client order and all orders must be offered to the market for matching. 15. A separate working group has been set up to look into the surveillance and enforcement-related issues arising due to Internet-based securities trading. However, general anti-fraud provisions (SEBI Fraudulent and
  • 18. 18 Unfair Trade Practices Regulations, 1995) will apply to all transactions involving securities or financial services, regardless of the medium. Issues in selection of an e-broker Individual investors compare the brokerage provided by various online traders. Brokerage can be a key differentiator among different schemes offered by e-brokers in the present competitive market place. For example icicidirect.com was the first to enter into e-broking and charges the highest brokerage (for delivery transactions) at 0.85 per cent per trade as compared to Invest Smart which charges 0.75 per cent. Other competitors like 5Paisa.com, Sharekhan and Kotakstreet.com charges0.25 per cent of the transaction value for delivery-based trades. The pattern of entry into e-broking shows that “brokerage and associated costs” can be the differentiators only for a timewhile.ICICIdirect.com as the first entrant, has touted itself as the first integrated e-broking service provider in the market. Although it charges high brokerage charges than its competitors it has positioned itself as the only player to have online broking, banking and depository interface in one module to offer a fully integrated online trading experience. Sharekhan, tried to overcomeicicidirect.com by introducing a flat fee product of Rs.1, 000 per month. This innovation helped Sharekhan to get the investors who traded heavily and had not to worry about paying heavy brokerage .But the next launch in e-trading halved the flat fee to Rs 500 and got an edge over Sharekhan. It also allowed short sales and offered clients the option of trading against securities upto three times sales marked for delivery providing for exposure. Thus innovation provides limited scope for it is a matter of time before almost all the schemes offer more or less identical features. All it depends is on the client's risk profile, preferences and requirements and each client may have to choose the different schemes. Online trading is still at infant stage and all the major players which have set up e-broking outfit‟s aim to achieve two objectives-1.To broad bases the overall trading of investors, while holding their existing clientele intact.2.Most settled e-broking players like ICICIdirect.com, Invest Smart and Kotakstreet.com are using their brick-and-mortar presence to encourage investors to go online. The investors are being assured if due to any reasons like poor connectivity or Internet infrastructure and that even if the Internet order-routing system breaks down or investor access is broken for any reason, online registered investors can have the option of putting through their orders offline. As this combination is still a new concept, most investors will be better off clarifying how the off line environment will operate, If online environment fails for any reason, for the investor, the important thing is to ensure that this switch from online to offline is seamless and that there are no associated hidden costs. From the opinion of an investor viewpoint the click-and-mortar approach to investing may be the best bet till the online trading market matures in terms of technology, infrastructure and service to become a self-sustaining business proposition. The brick- and-mortar brokerage outfit is likely to subsidize the investment in online trading technologies and further in the ongoing/recurring costs. Unless the share of online trading volumes increase dramatically to 10-15 per cent of the total trading volumes the traditional brick-and-mortar outfits will continue to dominate the market.. The investor checklist is mainly a trend spotter's guide to the selection of an e-broker. With most online trading outfits still forging agreements with payment gateways for online banking and with depository participants for online Demat, it may be too early to differentiate the grain from the chaff among e-brokers. But the investors' checklist still looks at aspects that are expected to acquire prominence as online trading catches on.
  • 19. 19 The pedigree of the e-broker plays a great role as to decide the serious players. Going forward consolidation is inevitable even in this industry and when that happens, online trading sites such asicicidirect.com, Sharekhan, Geogit securities, Invest Smart and Kotakstreet.com with a good reputation have a much better chance of survival and growth than the stand-alone sites such as5paisa.com and Indiabulls. Technology and back office infrastructure used by these online companies may prove to a burden inthe long run. It is good for medium to term investors looking at online trading from a perspective, sites with deep pockets and a pedigree will be a good choice. With the consolidation in the industry and standardization of technology the quality of service becomes the key differentiator. In the initial stage from investors viewpoint holding at least two online trading accounts with two different outfits will be good in the long run which helps in the evaluation of the quality of service and security-related issues of the two companies. So investor can switch to the better player according to his comfort level.. The integrated package provided initially by ICICIdirect.com offered a seamless 3-in-1 package of broking, banking and Demat accounts. This helped in reduction of the paperwork and time involved in settlements and transfer of shares or money. Later IDBI capital also introduced 3 in 1 account for traders convenience. Advantages of online trading 1. ProvideswiththeFreedomofInformation The Internet provides a new sense of controlling our financial future as the amount of investment information available online is truly outstanding. An investor can-  Know thepriceofanystockhedesiresatanypointoftimeontheinternet  Aninvestorcanreviewthepricehistoryofanystockinthechartformatonline  Aninvestorcanfollowin-depthanalysisoftheeventshappeninginthemarket  Helpsaninvestorinreceivingawealthoffreecommentaryandanalysisaboutstockmarketintheglobaleconomy  Helpsaninvestortoconductanextensivefinancialresearchofanycompanyhedesires  Hemayalsoconsultwithotherinvestorsonlinepresentaroundtheworld Some online stock broking companies provide real-time stock quotes, daily roundups of the stock market, expert commentary, and a deep community of fellow investors. 2. ProvidesControltoInvestorsMoney When an investor wants to buy or sell stock he no longer need to call his broker on the phone thus helping in the execution of the order instantly on the internet. 3. Providesaccesstothemarket
  • 20. 20 Through the sophisticated information streams, dedicated trading platforms and sophisticated tools the investor can access the markets which provides more agility in buying and selling stocks. 4. Ensuresthebestpriceforinvestors Some companies like Invests mart (IL&FS) specialize in the technique which offers the best price deals for the buy and sell orders of the investors and traders providing the high level of transparency by displaying of information relating to the specific stocks and company profiles which helps in getting the best quote for the orders. 5. Onlinetradingoffersgreatertransparency Online trading offers the investors with greater transparency by providing with an audit trail. The process involves a complete integrated electronic chain starting from order placement, to clearing and settlement and finally ending with a credit into the depository account of the investor. All these stages are inspected which brings the transparency into the system. 6. Provideshasslefreetrading Online trading provides an integration of the bank account, trading account and demat accounts, which leads to easy and paperless trading for the client. 7. Onlinetradingallowsinstanttradeexecution Online transactions helps in the quick execution of the entire trading transaction right from logging to the traders site and to the settlement of the bank account in a very short period of time. 8. Itprovidesalevelplayingfield Trading online gives even the smallest retail investor access to information which was earlier available only to the big traders. It has provided with a level playing field for all investors in the securities market. 9. Onlinetradingreducesthesettlementrisk This method of trading reduces the settlement risk for the investor as when a short sell order is played the orders are squared off at the specified cut-off time and are not allowed to be carried forward. 10. Provideslivefinancialnews&analysis The online sites also provide live terminals which provide streaming news to give investor the latest financial information as it occurs. 11. Onlinehelpdesk
  • 21. 21 Some companies provide online help desk an investor cancan contact the Tele Trading Executives from the Tele Trading team during and after market hours and can clarify questions. 12. Instantordertradeconfirmations Through online trading every trade is confirmed immediately and investor receives an on-screen confirmation following every trade with full details for the investors records which avoids costly errors that would have been discovered when it is too late. 13. KeepsInformationSecure As per the guideline provided by SEBI every effort has to be made to keep the investors account and personal information secure by use of encryption technology and updated security technology to advanced fraud prevention measures. Disadvantages of online trading 1. In online terminal, investor can‟t get customized expert advice, whereas in offline the broker gives suggestions according to investors strategy (i.e. short term or long-term) 2. Brokerage is high compared to offline. 3. Privacy is less due to hacking scandals 4 .Transactional errors due to technical problems
  • 22. 22 Analysis of capital-market trend (BSE) using the concept of Regression Analysis (All the data given below are collected at the beginning of June) Simple Regression Analysis Regression analysis is the process of constructing a mathematical model or function that can be used to predict or determine one variable by another variable or other variables. The most elementary regression model is called simple regression involving two variables in which one variable is predicted by another variable. In simple regression the variable is to be predicted is called dependent variable and is designated as “y”. The predictor is called independent variable and is designated by “x”. Below I have taken the very 1st days of each month as independent variables and strike prices like (open, high, low, close) as dependent variable BSE constructs various sectorial indices "Sector Series (90/FF)" as detailed below. All these indices are calculated and disseminated on BOLT, BSE's trading terminal on a real time basis. "90/FF" implies that the index covers 90% of the sectorial free-float market capitalization and is based on the Free-Float methodology. Index Specification: Index Base Period Base Index Value Date of Launch Method of Calculation S&P BSE Auto 01 February, 1999 1000 23 August, 2004 Free-float market capitalization S&P BSE BANKEX 01 January, 2002 1000 23 June, 2003 Free-float market capitalization S&P BSE Capital Goods 01 February, 1999 1000 09 August, 1999 Launched on full market capitalization method and effective August 23, 2004, calculation method shifted to free-float market capitalization S&P BSE Consumer Durables 01 February, 1999 1000 09 August, 1999 Launched on full market capitalization method and effective August 23, 2004, calculation method shifted to free-float market capitalization
  • 23. 23 S&P BSE FMCG 01 February, 1999 1000 09 August, 1999 Launched on full market capitalization method and effective August 23, 2004, calculation method shifted to free-float market capitalization S&P BSE Healthcare 01 February, 1999 1000 09 August, 1999 Launched on full market capitalization method and effective August 23, 2004, calculation method shifted to free-float market capitalization S&P BSE IT 01 February, 1999 1000 09 August, 1999 Launched on full market capitalization method and effective August 23, 2004, calculation method shifted to free-float market capitalization S&P BSE Metal 01 February, 1999 1000 23 August, 2004 Free-float market capitalization S&P BSE Oil & Gas 01 February, 1999 1000 23 August, 2004 Free-float market capitalization S&P BSE Power Index 03 January, 2005 1000 09 November, 2007 Free-float market capitalization S&P BSE Realty 2005 1000 09 July, 2007 Free-float market capitalization Understanding Free-float Methodology Concept A method by which the market capitalization of an index's underlying companies is calculated. Free- float methodology market capitalization is calculated by taking the equity's price and multiplying it by the number of shares readily available in the market. Instead of using all of the shares outstanding like the full-market capitalization method, the free-float method excludes locked-in shares such as those held by promoters and governments. Calculated as: FFM= share price *(#share outstanding-locked shares) S&P BSE Sector Series (90/FF) Indices  S&P BSE 100  S&P BSE 200  S&P BSE SENSEX  S&P BSE TECk  S&P BSE PSU  S&P BSE 500  S&P BSE CAP GOODS  S&P BSE FMCG  S&P BSE HEALTHCARE
  • 24. 24  S&P BSE CD  S&P BSE IT  S&P BSE BANKEX  S&P BSE Auto  S&P BSE Metal  S&P BSE Oil & Gas  S&P BSE MIDCAP  S&P BSE SMALLCAP  S&P BSE REALTY  S&P BSE POWER  S&P BSE IPO  S&P BSE Shariah 50  S&P BSE GREENEX  S&P BSE CARBONEX Scrip Selection Criteria for S&P BSE Sectorial Indices  Eligible Universe Scrips classified under various sectors that are present constituents of S&P BSE- 500 index would form the eligible universe.  Trading Frequency Scrips should have a minimum trading frequency of 90% in preceding three months.  Market Capitalization Scrips with a minimum of 90% average free-float market capitalization coverage in each sector based on free-float market cap final rank will form part of the the index.  Buffers A buffer of 2% both for inclusion and exclusion in the index is considered so that movements in and out of the index are minimized. For example, a company can be included in the index only if it falls within 88% coverage and an existing index constituent cannot be excluded unless it falls above 92% coverage. However, the above buffer criterion is applied only after the minimum 90% free-float market capitalization coverage is satisfied.  Index Review Frequency In case of a revision in the Index constituents, the announcement of the incoming and outgoing scrips is made six weeks in advance of the actual implementation of the revision of the Index. S&P Bse Auto Company Name Industry Mkt Cap (Rs cr) Weight Ashok Leyland Auto - LCVs/HCVs 6,239.29 1.79 Bajaj Auto Auto - 2 & 3 Wheelers 51,300.43 14.71 Bharat Forge Castings & Forgings 5,246.02 1.50 Bosch Auto Ancillaries 28,488.22 8.17 Cummins Engines 13,194.72 3.78 Market capitalization The total market value of all of a company's outstanding shares. Market capitalization is calculated by multiplying a company's shares outstanding by the current market price of one share. The investment community uses this figure to determine a company's size, as opposed to sales or total asset figures. Frequently referred to as "market cap."
  • 25. 25 Exide Industrie Auto Ancillaries 11,904.25 3.41 Hero Motocorp Auto - 2 & 3 Wheelers 32,680.86 9.37 Mah and Mah Auto - Cars & Jeeps 58,024.25 16.64 Maruti Suzuki Auto - Cars & Jeeps 49,482.22 14.19 Tata Motors Auto - LCVs/HCVs 92,210.30 26.44 Open High Low Close Jan 2013 11400.41 11462.99 11400.21 11426.21 Feb 2013 10988.55 11074.18 10952.68 10993.92 Mar 2013 10671.14 10671.14 10418.42 10458.61 Apr 2013 10041.63 10041.63 9884.67 9994.23 May 2013 10852.06 11099.3 10852.06 10996.62 June 2013 11374.43 11374.43 11146.79 11166.34 July 2013 10771.2 10854.58 10565.46 10663.87
  • 26. 26 y = -33.401x + 11005 R² = 0.0153 9500 10000 10500 11000 11500 0 1 2 3 4 5 6 7 strikeprice Months Excel graph for regression line for open Series1 Linear (Series1) y = -28.489x + 11054 R² = 0.0103 9800 10000 10200 10400 10600 10800 11000 11200 11400 11600 0 1 2 3 4 5 6 7 strikeprice Months Series1 Linear (Series1) y = -60.077x + 10986 R² = 0.0425 9800 10000 10200 10400 10600 10800 11000 11200 11400 11600 0 1 2 3 4 5 6 7 strikeprice Months Excel graph for regression line for low Series1 Linear (Series1)
  • 27. 27 S&P Bse Healthcare Company Name Industry Mkt Cap (Rs cr) Weight Apollo Hospital Hospitals & Medical Services 13,323.32 3.84 Aurobindo Pharma Pharmaceuticals 5,126.77 1.48 Biocon Pharmaceuticals 5,446.00 1.57 Cadila Health Pharmaceuticals 16,358.38 4.71 Cipla Pharmaceuticals 32,361.75 9.32 Divis Labs Pharmaceuticals 13,207.06 3.80 Dr Reddys Labs Pharmaceuticals 35,517.90 10.22 GlaxoSmithKline Pharmaceuticals 19,289.42 5.55 Glenmark Pharmaceuticals 15,239.28 4.39 Ipca Labs Pharmaceuticals 7,257.08 2.09 Lupin Pharmaceuticals 33,751.84 9.72 Opto Circuits Hospitals & Medical Services 1,112.25 0.32 Piramal Enter Pharmaceuticals 9,521.17 2.74 y = -50.161x + 11015 R² = 0.0324 9800 10000 10200 10400 10600 10800 11000 11200 11400 11600 0 1 2 3 4 5 6 7 strikeprice Months Excel graph for regression line for close Series1 Linear (Series1) 9000 9500 10000 10500 11000 11500 12000 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 open High Low Close
  • 28. 28 Ranbaxy Labs Pharmaceuticals 16,674.41 4.80 Strides Arcolab Pharmaceuticals 5,314.35 1.53 Sun Pharma Pharmaceuticals 103,641.04 29.84 Open High Low Close Jan 2013 8137.32 8150.79 8105.46 8132.35 Feb 2013 7991.1 8040.79 7977.22 8016.93 Mar 2013 7892.59 7925.73 7779.36 7810.33 Apr 2013 7949.63 8035.59 7939.58 8008.09 May 2013 8649.03 8722.67 8625.03 8691.2 June 2013 8920.46 8960.98 8825.96 8846.91 July 2013 8851.3 8926.71 8779.41 8830.24 y = 169.9x + 7662 R² = 0.5575 7600 7800 8000 8200 8400 8600 8800 9000 0 1 2 3 4 5 6 7 strikeprice Months Excel graph for regression line for open Series1 Linear (Series1)
  • 29. 29 y = 177.33x + 7685.4 R² = 0.6016 7800 8000 8200 8400 8600 8800 9000 9200 0 1 2 3 4 5 6 7 strikeprice Months Excel graph for regression line for high Series1 Linear (Series1) y = 163.03x + 7638.2 R² = 0.5314 7600 7800 8000 8200 8400 8600 8800 9000 0 1 2 3 4 5 6 7 strikeprice Months Excel graph for regression line for low Series1 Linear (Series1) y = 165.52x + 7671.6 R² = 0.5505 7600 7800 8000 8200 8400 8600 8800 9000 0 1 2 3 4 5 6 7 strikeprice Months Excel graph for regression line for close Series1 Linear (Series1)
  • 30. 30 S&P Bse 100 Company Name Industry Mkt Cap (Rs cr) Weight ABB Infrastructure - General 14,219.05 0.29 ACC Cement - Major 22,929.90 0.46 Adani Enterpris Trading 24,316.80 0.49 Adani Ports Infrastructure - General 31,673.66 0.64 Adani Power Power - Generation/Distribution 13,857.05 0.28 Ambuja Cements Cement - Major 28,478.92 0.58 Ashok Leyland Auto - LCVs/HCVs 6,239.29 0.13 Asian Paints Paints/Varnishes 46,041.49 0.93 Axis Bank Banks - Private Sector 68,268.73 1.38 Bajaj Auto Auto - 2 & 3 Wheelers 51,044.34 1.03 Bank of Baroda Banks - Public Sector 28,875.03 0.58 Bank of India Banks - Public Sector 17,582.98 0.36 Bharat Forge Castings & Forgings 5,246.02 0.11 Bharti Airtel Telecommunications - Service 117,571.53 2.38 BHEL Infrastructure - General 47,458.96 0.96 BPCL Refineries 27,798.97 0.56 Cairn India Oil Drilling And Exploration 54,308.81 1.10 Canara Bank Banks - Public Sector 18,803.13 0.38 Cipla Pharmaceuticals 32,438.02 0.66 Coal India Mining/Minerals 197,923.28 4.01 Colgate Personal Care 20,086.14 0.41 Crompton Greave Electric Equipment 5,917.76 0.12 Cummins Engines 13,197.49 0.27 Dabur India Personal Care 27,712.67 0.56 Divis Labs Pharmaceuticals 13,273.43 0.27 DLF Construction & Contracting - Real Estate 35,936.40 0.73 Dr Reddys Labs Pharmaceuticals 35,665.66 0.72 Exide Industrie Auto Ancillaries 11,968.00 0.24 Federal Bank Banks - Private Sector 7,697.98 0.16 GAIL Oil Drilling And Exploration 40,756.18 0.83 7000 7500 8000 8500 9000 9500 jan feb mar apr may jun jul Open High Low Close
  • 31. 31 Glenmark Pharmaceuticals 15,205.42 0.31 GMR Infra Infrastructure - General 8,407.66 0.17 Godrej Consumer Personal Care 28,487.07 0.58 Grasim Diversified 27,206.26 0.55 HCL Tech Computers - Software 51,787.70 1.05 HDFC Finance - Housing 142,310.86 2.88 HDFC Bank Banks - Private Sector 169,597.33 3.43 HDIL Construction & Contracting - Real Estate 2,099.21 0.04 Hero Motocorp Auto - 2 & 3 Wheelers 32,666.88 0.66 Hind Zinc Metals - Non Ferrous 50,281.30 1.02 Hindalco Aluminium 20,654.02 0.42 HPCL Refineries 9,703.36 0.20 HUL Personal Care 126,915.50 2.57 ICICI Bank Banks - Private Sector 139,127.06 2.82 IDBI Bank Banks - Public Sector 11,295.04 0.23 Idea Cellular Telecommunications - Service 43,125.84 0.87 IDFC Finance - Term Lending Institutions 23,326.81 0.47 IndusInd Bank Banks - Private Sector 26,836.66 0.54 Infosys Computers - Software 135,864.28 2.75 IOC Refineries 70,325.64 1.42 ITC Cigarettes 261,550.68 5.30 Jaiprakash Asso Infrastructure - General 15,056.48 0.30 Jindal Steel Steel - Sponge Iron 27,848.70 0.56 JSW Steel Steel - Large 15,940.61 0.32 Kotak Mahindra Banks - Private Sector 58,564.01 1.19 Larsen Infrastructure - General 89,694.88 1.82 LIC Housing Fin Finance - Housing 13,868.14 0.28 Lupin Pharmaceuticals 33,691.41 0.68 Mah and Mah Auto - Cars & Jeeps 58,168.54 1.18 Mahindra Satyam Computers - Software 12,903.49 0.26 Maruti Suzuki Auto - Cars & Jeeps 49,612.12 1.00 Nestle Food Processing 50,761.91 1.03 NHPC Power - Generation/Distribution 24,170.96 0.49 NMDC Mining/Minerals 46,248.41 0.94 NTPC Power - Generation/Distribution 125,372.29 2.54 ONGC Oil Drilling And Exploration 275,957.33 5.59 PNB Banks - Public Sector 27,938.54 0.57 Power Finance Finance - Term Lending Institutions 25,542.29 0.52 Power Grid Corp Power - Generation/Distribution 51,135.32 1.04 Ranbaxy Labs Pharmaceuticals 16,676.53 0.34 Rel Capital Finance - Investments 8,488.83 0.17 Reliance Refineries 264,806.55 5.36 Reliance Comm Telecommunications - Service 23,282.22 0.47 Reliance Infra Power - Generation/Distribution 9,998.88 0.20 Reliance Power Power - Generation/Distribution 20,982.35 0.42
  • 32. 32 Rural Elect Cor Finance - Term Lending Institutions 22,563.44 0.46 SAIL Steel - Large 24,721.19 0.50 SBI Banks - Public Sector 147,682.93 2.99 Sesa Goa Mining/Minerals 13,870.86 0.28 Shriram TransFi Finance - Leasing & Hire Purchase 25,791.76 0.52 Siemens Infrastructure - General 20,444.50 0.41 Sterlite Ind Metals - Non Ferrous 31,427.29 0.64 Sun Pharma Pharmaceuticals 103,439.10 2.09 Suzlon Energy Infrastructure - General 2,781.84 0.06 Tata Chemicals Chemicals 7,761.15 0.16 Tata Global Bev Plantations - Tea & Coffee 8,771.98 0.18 Tata Motors Auto - LCVs/HCVs 92,656.91 1.88 Tata Power Power - Generation/Distribution 21,654.29 0.44 Tata Steel Steel - Large 30,403.89 0.62 TCS Computers - Software 291,156.20 5.90 Titan Ind Miscellaneous 25,071.08 0.51 UltraTechCement Cement - Major 53,821.52 1.09 Union Bank Banks - Public Sector 13,538.28 0.27 Unitech Construction & Contracting - Civil 6,684.65 0.14 United Brewerie Breweries & Distilleries 19,506.49 0.40 United Phos Chemicals 6,942.25 0.14 United Spirits Breweries & Distilleries 33,057.12 0.67 Wipro Computers - Software 82,523.07 1.67 Yes Bank Banks - Private Sector 18,345.09 0.37 Zee Entertain Media & Entertainment 22,586.87 0.46 Open High Low Close Jan 2013 5968.29 5989.47 5968.29 5975.74 Feb 2013 6094.6 6107.87 6078.85 6091.47 Mar 2013 5859.49 5883.39 5698.19 5720.1 Apr 2013 5627.47 5691.48 5595.58 5678.7
  • 33. 33 May 2013 5939.51 5969.74 5875.1 5941.35 June 2013 6115.27 6115.27 5982.02 5991.11 July 2013 5961.84 5801.84 5801.86 5858.22 y = 0.6486x + 5957.3 R² = 6E-05 5600 5700 5800 5900 6000 6100 6200 0 1 2 3 4 5 6 7 strikeprice Months Excel graph for regression line for open Series1 Linear (Series1) y = 0.6486x + 5957.3 R² = 6E-05 5600 5700 5800 5900 6000 6100 6200 0 1 2 3 4 5 6 7 strikeprice Months Excel graph for regression line for high Series1 Linear (Series1) y = -18.435x + 5930.9 R² = 0.0349 5500 5600 5700 5800 5900 6000 6100 6200 0 1 2 3 4 5 6 7 strikeprice Months Excel graph for regression line for low Series1 Linear (Series1)
  • 34. 34 S&P Bse Capital Goods Company Name Industry Mkt Cap (Rs cr) Weight ABB Infrastructure - General 14,197.86 6.03 AIA Engineering Engineering - Heavy 2,697.09 1.14 ALSTOM India Power - Transmission/Equipment 2,505.23 1.06 Alstom T&D Power - Transmission/Equipment 4,076.72 1.73 BEML Infrastructure - General 696.50 0.30 Bharat Elec Electricals 10,124.00 4.30 BHEL Infrastructure - General 47,520.15 20.17 Crompton Greave Electric Equipment 5,888.89 2.50 FAG Bearings Bearings 2,442.74 1.04 Havells India Electric Equipment 8,553.31 3.63 Jindal Saw Steel - Tubes/Pipes 2,102.06 0.89 Lakshmi Machine Textiles - Machinery 2,276.96 0.97 Larsen Infrastructure - General 89,383.89 37.93 y = -11.855x + 5941.2 R² = 0.0184 5600 5700 5800 5900 6000 6100 6200 0 1 2 3 4 5 6 7 strikeprice Months Excel graph for regression line for close Series1 Linear (Series1) 5300 5400 5500 5600 5700 5800 5900 6000 6100 6200 jan feb mar apr may jun jul Open High Low Close
  • 35. 35 Pipavav Defence Shipping 4,908.39 2.08 Praj Industries Engineering - Heavy 694.78 0.29 Punj Lloyd Infrastructure - General 1,550.89 0.66 Sadbhav Eng Infrastructure - General 1,642.29 0.70 Siemens Infrastructure - General 20,467.61 8.69 SKF India Bearings 2,986.24 1.27 Suzlon Energy Infrastructure - General 2,777.66 1.18 Thermax Infrastructure - General 6,873.53 2.92 Welspun Corp Steel - Tubes/Pipes 1,262.15 0.54 Open High Low Close Jan 2013 10896.97 10935.12 10850.39 10868.11 Feb 2013 10472.99 10534.95 10458.81 10495.62 Mar 2013 9642.08 9688.84 9113.41 9184.5 Apr 2013 8829.25 9049.98 8813.17 9017.59 May 2013 9802.37 9819.00 9560.76 9718.80 June 2013 9565.09 9565.09 9391.27 9407.38 July 2013 8920.21 8968.62 8669 8801.79
  • 36. 36 y = -270.97x + 10817 R² = 0.4847 0 2000 4000 6000 8000 10000 12000 0 1 2 3 4 5 6 7 strikeprice Months Excel graph for regression line for open Series1 Linear (Series1) y = -275.34x + 10896 R² = 0.5635 0 2000 4000 6000 8000 10000 12000 0 1 2 3 4 5 6 7 strikeprice Months Excel graph for regression line for high Series1 Linear (Series1) y = -294x + 10727 R² = 0.4811 0 2000 4000 6000 8000 10000 12000 0 1 2 3 4 5 6 7 strikeprice Months Excel graph for regression line for low Series1 Linear (Series1)
  • 37. 37 S&P Bse Fmcg Company Name Industry Mkt Cap (Rs cr) Weight Colgate Personal Care 20,086.14 3.44 Dabur India Personal Care 27,730.10 4.75 Godrej Consumer Personal Care 28,383.27 4.86 HUL Personal Care 126,883.06 21.74 ITC Cigarettes 261,471.66 44.81 Jubilant Food Miscellaneous 7,050.61 1.21 Nestle Food Processing 50,680.44 8.69 Tata Global Bev Plantations - Tea & Coffee 8,768.89 1.50 United Brewerie Breweries & Distilleries 19,513.10 3.34 United Spirits Breweries & Distilleries 32,960.33 5.65 y = -280.03x + 10762 R² = 0.4946 0 2000 4000 6000 8000 10000 12000 0 1 2 3 4 5 6 7 strikeprice Months Excel graph for regression line for close Series1 Linear (Series1) 0 2000 4000 6000 8000 10000 12000 jan feb mar apr may jun jul Open High Low Close
  • 38. 38 Open High Low Close Jan 2013 5939.92 5939.92 5902.9 5916.22 Feb 2013 5871.75 5937.91 5863.13 5921.89 Mar 2013 5707.56 5801.6 5643.92 5669.1 Apr 2013 5878.73 5939.28 5864.17 5919.19 May 2013 6479.45 6635.43 6479.45 6548.52 June 2013 6864.24 6864.24 6757.85 6772.13 July 2013 6785.14 6871.59 6719.62 6765.51 y = 189.02x + 5462 R² = 0.6219 0 2000 4000 6000 8000 0 1 2 3 4 5 6 7 strikeprice Months Excel graph for regression line for open Series1 Linear (Series1) y = 195.77x + 5501.2 R² = 0.6756 0 2000 4000 6000 8000 0 1 2 3 4 5 6 7 strikeprice Months Excel graph for regression line for high Series1 Linear (Series1)
  • 39. 39 y = 181.26x + 5450.8 R² = 0.6156 5400 5600 5800 6000 6200 6400 6600 6800 7000 0 1 2 3 4 5 6 7 strikeprice Months Excel graph for regression line for low Series1 Linear (Series1) y = 183.13x + 5483.6 R² = 0.6289 5600 5800 6000 6200 6400 6600 6800 7000 0 1 2 3 4 5 6 7 strikeprice Months Excel graph for regression line for close Series1 Linear (Series1) 0 1000 2000 3000 4000 5000 6000 7000 8000 jan feb mar apr may jun jul Open High Low Close
  • 40. 40 S&P Bse It Company Name Industry Mkt Cap (Rs cr) Weight Financial Tech Computers - Software 3,682.60 0.59 HCL Tech Computers - Software 51,752.90 8.30 Hexaware Tech Computers - Software 2,492.05 0.40 Infosys Computers - Software 135,545.58 21.74 Mahindra Satyam Computers - Software 12,921.15 2.07 MphasiS Computers - Software 9,308.03 1.49 OracleFinancial Computers - Software 22,359.22 3.59 TCS Computers - Software 290,451.60 46.59 Tech Mahindra Computers - Software 12,296.23 1.97 Wipro Computers - Software 82,633.91 13.25 Open High Low Close Jan 2013 5682.35 5698.83 5669.3 5684.08 Feb 2013 6419.25 6429.85 6350.49 6393.63 Mar 2013 6735.93 6807.76 6720.24 6754.33 Apr 2013 6820.27 6913.02 6815.92 6885.46 May 2013 5689.72 5716.98 5659.98 5709.64 June 2013 6024.44 6079.42 6003.69 6065.34 July 2013 6189.24 6172.92 6172.92 6247.29
  • 41. 41 y = -11.251x + 6268 R² = 0.0017 0 1000 2000 3000 4000 5000 6000 7000 8000 0 1 2 3 4 5 6 7 strikeprice Months Excel graph for regression line for open Series1 Linear (Series1) y = -8.6829x + 6233.7 R² = 0.001 0 1000 2000 3000 4000 5000 6000 7000 8000 0 1 2 3 4 5 6 7 strikeprice Months Excel graph for regression line for high Series1 Linear (Series1) y = -8.6829x + 6233.7 R² = 0.001 0 1000 2000 3000 4000 5000 6000 7000 8000 0 1 2 3 4 5 6 7 strikeprice Months Excel graph for regression line for low Series1 Linear (Series1)
  • 42. 42 S&P Bse Metal Company Name Industry Mkt Cap (Rs cr) Weight Bhushan Steel - CR/HR Strips 10,545.43 2.25 Coal India Mining/Minerals 197,765.37 42.10 Hind Zinc Metals - Non Ferrous 50,217.92 10.69 Hindalco Aluminium 20,625.29 4.39 Jindal Steel Steel - Sponge Iron 27,848.70 5.93 JSW Steel Steel - Large 15,986.35 3.40 NMDC Mining/Minerals 46,387.18 9.88 SAIL Steel - Large 24,659.24 5.25 Sesa Goa Mining/Minerals 13,857.82 2.95 Sterlite Ind Metals - Non Ferrous 31,427.29 6.69 Tata Steel Steel - Large 30,384.47 6.47 y = -0.4154x + 6250.2 R² = 2E-06 0 2000 4000 6000 8000 0 1 2 3 4 5 6 7 strikeprice Months Excel graph for regression line for close Series1 Linear (Series1) 0 1000 2000 3000 4000 5000 6000 7000 8000 jan feb mar apr may jun jul Open High Low Close
  • 43. 43 Open High Low Close Jan 2013 11033.41 11129.3 11031.31 11070.63 Feb 2013 10596.87 10623.13 10502.19 10606.13 Mar 2013 9418.93 9443.69 8973.89 9067.95 Apr 2013 8512.05 8797.91 8502.9 8758.32 May 2013 8644.09 8684.34 8518.92 8651.05 June 2013 8654.08 8687.29 8469.81 8503.01 July 2013 7610.6 7693.57 7610.34 7541.39 y = -533.2x + 11343 R² = 0.8317 0 2000 4000 6000 8000 10000 12000 0 1 2 3 4 5 6 7 strikeprice Months Excel graph for regression line for open Series1 Linear (Series1)
  • 44. 44 y = -533.49x + 11428 R² = 0.8714 0 2000 4000 6000 8000 10000 12000 0 1 2 3 4 5 6 7 strikeprice Months Excel graph for regression line for high Series1 Linear (Series1) y = -549.38x + 11256 R² = 0.8155 0 2000 4000 6000 8000 10000 12000 0 1 2 3 4 5 6 7 strikeprice Months Excel graph for regression line for low Series1 Linear (Series1) y = -543.23x + 11344 R² = 0.8435 0 2000 4000 6000 8000 10000 12000 0 1 2 3 4 5 6 7 strikeprice Months Excel graph for regression line for close Series1 Linear (Series1)
  • 45. 45 S&P Bse TECk Company Name Industry Mkt Cap (Rs cr) Weight Bharti Airtel Telecommunications - Service 117,723.43 13.30 DB Corp Media & Entertainment 4,566.14 0.52 Den Networks Media & Entertainment 3,129.77 0.35 Dish TV India Media & Entertainment 6,974.83 0.79 Eros Intern Media & Entertainment 1,513.94 0.17 Financial Tech Computers - Software 3,682.60 0.42 GTL Infra Telecommunications - Equipment 460.33 0.05 HCL Tech Computers - Software 51,777.26 5.85 Hexaware Tech Computers - Software 2,493.54 0.28 HFCL Telecommunications - Equipment 976.63 0.11 HT Media Media & Entertainment 2,327.88 0.26 Idea Cellular Telecommunications - Service 43,142.41 4.87 Infosys Computers - Software 135,634.58 15.32 JagranPrakashan Media & Entertainment 3,000.48 0.34 Mahindra Satyam Computers - Software 12,932.92 1.46 MphasiS Computers - Software 9,308.03 1.05 MTNL Telecommunications - Service 1,332.45 0.15 Navneet Printing & Stationery 1,441.20 0.16 0 2000 4000 6000 8000 10000 12000 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Open High Low Close
  • 46. 46 OnMobile Global Computers - Software Medium/Small 418.87 0.05 OracleFinancial Computers - Software 22,353.75 2.53 Reliance Comm Telecommunications - Service 23,261.58 2.63 Sun TV Network Media & Entertainment 16,204.76 1.83 Tata Comm Telecommunications - Service 6,027.75 0.68 TataTeleservice Telecommunications - Service 1,578.47 0.18 TCS Computers - Software 290,617.96 32.83 Tech Mahindra Computers - Software 12,290.46 1.39 Tulip Telecom Telecommunications - Service 187.78 0.02 TV18 Broadcast Media & Entertainment 4,553.01 0.51 Wipro Computers - Software 82,633.91 9.34 Zee Entertain Media & Entertainment 22,606.05 2.55 Open High Low Close Jan 2013 3429.69 3436.5 3421.6 3427.9 Feb 2013 3898.91 3819.03 3782.12 3798.42 Mar 2013 3908.96 3939.09 3878.11 3897.06 Apr 2013 3866.69 3914.76 3857.45 3900.94 May 2013 3466.21 3479.03 3439.42 3474.24 June 2013 1615.99 3623.82 3595.59 3602.53 July 2013 2323.5 3691.25 3644.54 3673.99
  • 47. 47 y = -297.4x + 4405.3 R² = 0.3962 0 1000 2000 3000 4000 5000 0 1 2 3 4 5 6 7 strikeprice Months Excel graph for regression line for open Series1 Linear (Series1) y = -3.078x + 3712.8 R² = 0.0007 3400 3500 3600 3700 3800 3900 4000 0 1 2 3 4 5 6 7 strikeprice Months Excel graph for regression line for high Series1 Linear (Series1) y = -5.1089x + 3680.3 R² = 0.0022 3300 3400 3500 3600 3700 3800 3900 4000 0 1 2 3 4 5 6 7 strikeprice Months Excel graph for regression line for low Series1 Linear (Series1)
  • 48. 48 S&P Bse Bankex Company Name Industry Mkt Cap (Rs cr) Weight Axis Bank Banks – Private Sector 68,257.02 9.05 Bank of Baroda Banks - Public Sector 28,828.55 3.82 Bank of India Banks - Public Sector 17,544.20 2.33 Canara Bank Banks - Public Sector 18,736.69 2.48 Federal Bank Banks - Private Sector 7,723.64 1.02 HDFC Bank Banks - Private Sector 169,525.90 22.48 ICICI Bank Banks - Private Sector 139,098.21 18.45 IDBI Bank Banks - Public Sector 11,301.71 1.50 y = -2.7289x + 3693.1 R² = 0.0006 3400 3500 3600 3700 3800 3900 4000 0 1 2 3 4 5 6 7 strikeprice Months Excel graph for regression line for close Series1 Linear (Series1) 0 500 1000 1500 2000 2500 3000 3500 4000 4500 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Open High Low Close
  • 49. 49 IndusInd Bank Banks - Private Sector 27,019.76 3.58 Kotak Mahindra Banks - Private Sector 58,522.95 7.76 PNB Banks - Public Sector 27,954.44 3.71 SBI Banks - Public Sector 147,648.73 19.58 Union Bank Banks - Public Sector 13,559.16 1.80 Yes Bank Banks - Private Sector 18,375.60 2.44 Open High Low Close Jan 2013 14321.6 14396.5 14292.26 14344.99 Feb 2013 14627.69 14742.52 14561.45 14580.26 Mar 2013 13769.8 13822.69 13094.05 13203.87 Apr 2013 12831.72 13105.59 12723.46 13033.35 May 2013 14482.75 14482.75 14175.5 14363.74 June 2013 14579.33 14579.33 14233.64 14261.24 July 2013 14094.2 14129.5 13664.69 13840.24
  • 50. 50 y = -2.4071x + 14111 R² = 4E-05 12500 13000 13500 14000 14500 15000 0 1 2 3 4 5 6 7 strikeprice Months Excel graph for regression line for open Series1 Linear (Series1) y = -16.636x + 14246 R² = 0.0026 13000 13500 14000 14500 15000 0 1 2 3 4 5 6 7 strikeprice Months Excel graph for regression line for high Series1 Linear (Series1) y = -52.044x + 14029 R² = 0.017 12500 13000 13500 14000 14500 15000 0 1 2 3 4 5 6 7 strikeprice Months Excel graph for regression line for low Series1 Linear (Series1)
  • 51. 51 y = -35.395x + 14088 R² = 0.0099 12500 13000 13500 14000 14500 15000 0 1 2 3 4 5 6 7 strikeprice Months Excel graph for regression line for close Series1 Linear (Series1) 11500 12000 12500 13000 13500 14000 14500 15000 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Open High Low Close
  • 52. 52 Company profile IDBI Capital Idbipaisabuilder.in is a multipurpose online stock trading website from IDBI Capital Market Services Ltd., a leading provider of financial services in India and is a 100% subsidiary of Industrial Development Bank of India (IDBI). IDBI Capital offers a full suite of products and services to Corporate, Institutional and Individual clients. The range of services includes:-  Investment Banking  Capital Market Products  Public Offerings  Qualified Institutional Placements  Buyback  Takeover  Preferential Allotments  External Commercial Borrowings, FCCBs, etc.  Private Equity  Corporate Advisory Services  Mergers & Acquisitions  Project Appraisals & Debt Syndication  Stock Broking - Institutional & Retail  Distribution of Financial Products  Debt Placement and Underwriting  Fund Management (Managing Clients' Assets-Pension/PF Fund Managers)  Research Group IDBI Capital as an institutional player provides the entire gamut of Capital Market services encompassing: Idbipaisabuilder.in allows investing in equity shares, derivatives (futures & options) mutual funds & IPO's in India Stock Markets. You can buy or sell securities on NSE and BSE Stock exchanges. Mile stones 1995 March Commenced Equity Broking on NSE CM segment 1995 July Built agent Distribution Network across the country
  • 53. 53 1996 October Commenced Debt Broking on NSE WDM segment 1996 December Started operations as a Depository Participant 1996 Started to act as Arranger to Privately Placed Bond issues 1998 April Commenced operations as a Portfolio Manager 1999 February Acquired membership of BSE, Mumbai 1999 November Started operations as a Primary Dealer 2002 March Achieved an outright secondary market turnover exceeding Rs.100000 crore in G-Secs 2000 June Acquired Derivatives memberships of BSE and NSE 2002 October Commenced trading in Interest Rate Swaps 2004 June Commenced Merchant Banking & Corporate Advisory Services 2006 January Launched the online investing portal – www.idbipaisabuilder.in 2006 September IDBI Capital bags CNBC TV18 'Best National Financial Advisor-Institutional' award. 2006 November IDBI Capital ties up with Punjab National Bank and Bank of Rajasthan Bank. 2007 March IDBI Capital ties up with Oriental Bank of Commerce 2007 May IDBI Capital ties up with Karur Vysya Bank (KVB) 2008 January IDBI Capital bags CNBC TV18's prestigious National Financial Advisor Award 2008 March IDBI Capital ties up with Union Bank of India Account Types Paisa Power Classic Trading Terminal 1. Paisa Power Classic Account Paisa Power Classic Account is online stock trading account for beginners and low volumn traders in India Stock Market. It allows investor to invest in Equity, Mutual Funds and IPOs online. Following are few popular features of this account:
  • 54. 54 a. Online trading account for investing in Equities and Derivatives. b. Short learning curve helps you to start quickly. c. Easy to use features. d. Evaluate & buy mutual funds schemes online and check on fund rankings through our performance map. e. Apply for IPO‟s online. No paper work or check required for applying in IPOs. f. Integration of: Online trading + Bank + Demat account g. Trading is available in both BSE and NSE. Paisa Power Streaming Trading Terminal 2. Paisa Power Streaming Account Paisa Power Streaming Account for online trading is for high volume and frequent equity traders. As classic account this account also provides investment options in Stocks, Mutual Funds and Initial public offers online. Following are few popular features of this account: a. Live refreshing equity prices, which enable you to keep track of every price movement as soon as it takes place. b. Setting price alerts on the scripts in order to notify you as soon as your scrip reaches a particular price point. c. Multiple market watches, message window and trading window. d. Evaluate & buy mutual funds schemes online and check on fund rankings through our performance map. e. Apply for IPO‟s at the click of a button without any of the hassle of tedious paperwork and processes involved in an offline IPO application. f. Trading is available in both BSE and NSE. IDBI Paisa builder Advantages
  • 55. 55 1. Idbipaisabuilder.in enables you to set up a single integrated 3-in-1 account that links your Bank, Demat and Trading accounts. 2. All your transactions are online which means absolutely no paperwork involves. 3. You can invest anywhere, at absolutely anytime, even when the market is closed. All your orders are confirmed immediately with no delays. 4. Trade over Phone (ToP) facility is available in addition to internet trading. ToP allows you to place orders or check order status on phone. 5. Idbipaisabuilder.in website is 'VeriSign Certified', which ensures complete confidentiality of your transactions with highest security. 6. Help documents and demos are available to invest in equity, mutual funds and IPO‟s which helps you to get familiar with the process on investing through Idbipaisabuilder.in Competitors Share Khan Incorporated in February 2000, Sharekhan is India's 2ndlargest stock broker providing brokerage services through its online trading website Sharekhan.com and 1950 Share shops which includes branches & Franchises in more than 575 cities across India. Sharekhan has seen incredible growth over last 10+ years though it's very successful online trading platform and the chain of franchises located in almost every part of India. Sharekhan has over 10 lakh retail and institutional customers. Sharekhan.com is the finest investment portal for India stock market. The well designed website provides wide range on investment options, latest stock market updates and many tools for investors. Sharekhan also offers 'Sharekhan TradeTiger, one of the most popular trading terminals, for retail investors. The TradeTiger is quite similar to Broker Terminal and allows frequent traders to place and execute their orders at a high speed. It also provides live data and other tools on the same screen to help the users with their trades. Share khan‟s 'Share Mobile' platform offers trading facility though mobile application. Mobile apps are available for popular iPhone, iPad, Blackberry, Android and other phones. Services offered by Sharekhan include trading in equity, F&O and Commodity and investment in IPO's, Mutual Funds, Insurance, Bonds and NCD's. Company also provide Sharekhan Demat Account and registered as a depository participant with NSD and CDS.
  • 56. 56 Sharekhan offers verity of accounts to suite customer requirement. These accounts include Sharekhan First Step Account, Sharekhan Classic Account, Sharekhan Trade Tiger Account and Portfolio Management Services (PMS) though Sharekhan Platinum Circle Account. Sharekhan has its own research teams which regularly publishes investment advices, stock tips, quarterly company result analysis and news alerts to its customer though email, SMS and on Sharekhan.com. Sharekhan has an excellent knowledge center on its website to help stock and commodity market investors of all kind. It also offers free online and classroom seminars / workshops to investors. Each Sharekhan Accounts comes with online and in-person help from Sharekhan representative. Account Types 1. Classic account Allow investor to buy and sell stocks online along with the following features like multiple watch lists, Integrated Banking, demat and digital contracts, Real-time portfolio tracking with price alerts and Instant credit & transfer. a. Online trading account for investing in Equities and Derivatives b. Free trading through Phone (Dial-n-Trade) I. Two dedicated numbers for placing your orders with your cellphone or landline. II. Automatic funds transfer with phone banking (for Citibank and HDFC bank customers) III. Simple and Secure Interactive Voice Response based system for authentication IV. get the trusted, professional advice of our tele- brokers V. After hours order placement facility between 8.00 am and 9.30 am c. Integration of: Online trading + Bank + Demat account d. Instant cash transfer facility against purchase & sale of shares e. IPO investments f. Instant order and trade confirmations by e-mail g. Single screen interface for cash and derivatives 2. Trade Tiger account This is a net based executable application for active traders who trade frequently during the day's trading session. Following are few popular features of Trade Tiger account. a. A single platform for multiple exchange BSE & NSE (Cash & F&O), MCX, NCDEX b. Multiple Market Watch available on Single Screen c. Hot keys similar to a traditional broker terminal d. Tie-up with 12 banks for online transfer of funds e. Different tools available to gauge market such as Tick Query, Ticker, Market Summary, Action Watch, Option Premium Calculator, Span Calculator
  • 57. 57 Sharekhan Advantages 1. Sharekhan offers different trading platform to suite customer requirement. This includes online browser based trading, Installable terminal, mobile, call n trade and in-person trade though branch offices. 2. It offers different brokerage slabs to suit individual customers. Higher your trade your brokerage gets reduced. They have multiple brokerage schemas are available with them. 3. Sharekhan offers online and classroom training, seminars and workshops to investors. 4. Sharekhan doesn't charge for Online Funds Transfer from bank account and Funds Pay-out to bank account. 5. Sharekhan doesn't charge for DP transactions. Share transfer from and to the dp account is free. 6. Sharekhan has India-wide network of branches. You can find surly find a Sharekhan in your neighborhood. 7. Call & Trade facility is free with Sharekhan. Sharekhan Disadvantages 1. Sharekhan doesn't offer 3-in-1 account as they don't provide banking services. 2. They brokerage charges are % based which are higher in comparison to flat fee brokers. 3. They charge minimum brokerage of 10 paisa per stock would not let you trade stocks below 20 rs. (If you trade, you will lose majority of your money in brokerage). 4. Facility to place orders after trading hours is not available. 5. Classic account holders cannot trade commodities. Sharekhan Brokerage Charges 2013 Account Opening Fees & Annual maintenance charges (AMC)  Trading Account Opening Charges (One Time): Rs 750 (Classic Account), Rs 1000 (Trade Tiger Account)  Trading Annual maintenance charges (AMC): Rs 400 (First year remains free)  Demat Account Opening Charges (One Time): Included in trading account opening charges  Demat Account Annual Maintenance Charges (AMC): Rs. 400 (Free for 1st year with trading account.) Trading Brokerages  Intra-day Trades: 0.1% on the buy side and 0.1% on the sell side.  Delivery Based Trades: 0.5% or 10 paise per share or Rs. 16/- per scrip whichever is higher.
  • 58. 58  F&O Trades: 0.1% on the first leg and 0.02% on the second leg if squared off on the same day and 0.1% if squared off on any other day.  Options Trades: Rs. 100/- per contract or 2.5% on the premium (whichever is higher). Amount (Rs) Period Cash Leg 1 Cash Leg 2 Delivery Future Leg 1 Future Leg 2 same day Future next day Option Intraday transaction Delivery transaction Default 0.1 0.1 0.5 0.1 0.02 0.1 Higher of 2.5% of premium or Rs 100 750 6 months 0.1 0 0.5 0.1 0 0.1 Higher of 2.5% of premium or Rs 100 7,50,000 1,50,000 1000 6 months 0.09 0 0.45 0.09 0 0.09 Higher of 2.25% of premium or Rs 95 11,11,111 2,22,222 2000 Annual 0.07 0 0.4 0.07 0 0.07 Higher of 1.5% of premium or Rs 80 28,57,143 5,00,000 6000 Annual 0.05 0 0.25 0.05 0 0.05 Higher of 1% of premium or Rs 70 1,20,00,000 24,00,000 18000 Annual 0.04 0 0.2 0.04 0 0.04 Higher of 1% of premium or Rs 50 4,50,00,000 90,00,000 30000 Annual 0.03 0 0.18 0.03 0 0.03 Higher of 0.75% of premium or Rs 40 10,00,00,000 1,66,66,667 60000 Annual 0.02 0 0.15 0.02 0 0.02 Higher of 0.50% of premium or Rs 30 30,00,00,000 4,00,00,000 100000 Annual 0.015 0 0.1 0.015 0 0.015 Higher of 0.55% of premium or Rs 25 66,66,66,667 10,00,00,000 200000 Annual 0.005 0.005 0.08 0.005 0.005 0.005 Flat Rs 10 2,00,00,00,000 25,00,00,000
  • 59. 59 Sharekhan Post Paid Plans Sharekhan offers following postpaid plans. To get the offer customer has to deposit the margin money with Sharekhan based the plan they choose. The brokerage reduces as the margin money is high. Margin Scheme Cash Leg 1 Cash Leg 2 Delivery Future Leg1 Future Leg 2 same day Future next day Option 25 K 0.1 0.1 0.5 0.1 0.02 0.1 Higher of 2.5% of premium or Rs 100 30 K 0.1 0 0.5 0.1 0 0.1 Higher of 2.5% of premium or Rs 100 40 K 0.09 0 0.45 0.09 0 0.09 Higher of 2.25% of premium or Rs 95 50 K 0.07 0 0.4 0.07 0 0.07 Higher of 1.5% of premium or Rs 80 1 Lakh 0.05 0 0.25 0.05 0 0.05 Higher of 1% of premium or Rs 70 3 Lakh 0.04 0 0.2 0.04 0 0.04 Higher of 1% of premium or Rs 50 5lakhs 0.03 0 0.18 0.03 0 0.03 Higher of 0.75% of premium or Rs 40 10 Lakhs 0.02 0 0.15 0.02 0 0.02 Higher of 0.60% of premium or Rs 30 20 Lakhs 0.015 0 0.1 0.015 0 0.015 Higher of 0.55% of premium or Rs 25 Angel Broking Limited Angel Group has emerged as one of the top 3 retail broking houses in India. Incorporated in 1987, it has memberships on BSE, NSE and the two leading commodity exchanges in India i.e. NCDEX & MCX. Angel is also registered as a depository participant with CDSL. Angel's retail stock broking house offering a gamut of retail centric services.  E-broking  Investment Advisory  Portfolio Management Services
  • 60. 60  Wealth Management Services  Commodities Trading Angel Trade's Trading Platforms Angel Broking offers 5 trading platforms to its customers: 1. Angel Diet It is an application based trading platform where rates are updated automatically. All segments are available on a single screen. This is ideal platform for the daily traders. 2. Angel Trade It is a browser based trading platform. The rates are updated automatically. This platform is useful for investors & traders to access market from different terminals. 3. Angel Investor It is a browser based trading platform for investors. It's an easy online trading platform accessible even behind proxy and firewall system set up. 4. Angel Lite This platform allows accessing and trading even on slow internet connection. This platform provides facility to view live rates, last traded price and % change of your stocks. 5. Angel Swift This is a Mobile trading platform for mobile applications. Trading can be done on Equity and Commodity Market using this platform Angel Trade Brokerage Charges 2013 1. Account opening fees: Stock trading account - Rs 575/- Demat account - Rs 200/- Commodity trading - Rs 625/- 2. Brokerage: If Initial margin cheque is more than 25,000 Intraday (Buy & Sell): Rs. 0.04% per trade* Delivery (Buy & Sell): Rs. 0.40% per trade* F&O (Buy & Sell) : Rs. 0.04% per trade*
  • 61. 61 If Initial margin cheque is more than 50,000 Intraday (Buy & Sell) : Rs. 0.03% per trade* Delivery (Buy & Sell): Rs. 0.30% per trade* F&O (Buy & Sell): Rs. 0.03% per trade* If Initial margin cheque is more then 1,00,000 Intraday (Buy & Sell) : Rs. 0.02% per trade* Delivery (Buy & Sell) : Rs. 0.20% per trade* F&O (Buy & Sell) : Rs. 0.02% per trade* If Initial margin cheque is more then 3,00,000 Intraday (Buy & Sell) : Rs. 0.015% per trade* Delivery (Buy & Sell): Rs. 0.15% per trade* F&O (Buy & Sell): Rs. 0.015% per trade* If Initial margin cheque is more then 5,00,000 Intraday (Buy & Sell): Rs. 0.01% per trade* Delivery (Buy & Sell): Rs. 0.10% per trade* F&O (Buy & Sell) : Rs. 0.01% per trade* Angel Trade Advantages 1. User friendly browser-based / application based online trading platform. 2. Investors have different investment options like Equity Trading, F&O, Commodities, PMS, Mutual Funds, Life Insurance, Personal Loans, IPO and Depository Services available under one roof. 3. The auto square off time is at 3:15 and an investor can buy up to 4 times the value in his account. 4. Trading account can be linked with popular private banks like HDFC Bank, ICICI Bank, UTI bank etc. 5. Presence in 450+ cities 6. Trading is available in both BSE and NSE. Angel Trade Disadvantages Online money transfer from trading account to bank account is not available: Trading account can be linked with popular private banks like HDFC Bank, ICICI Bank, UTI bank etc. A trader can transfer money from his bank to the trading account online. But the reverse transactions are not yet available online. This means money, a trader gets after selling shares doesn‟t get credited in his bank account directly. The trader has to call Angel Trade and request for the deposit. This takes couple of working days.
  • 62. 62 This way angel trade is kind of behind with ICICI Direct where 3 accounts (Bank account, trading account and demat account) are connected so seamlessly that no manual interfere requires. In ICICI Direct, a trader gets the money back into his ICICI Bank account as soon as the traders settle down. Kotak Securities Limited Incorporated in 1994, Kotak Securities is a full services broker part of popular India based Kotak Mahindra Bank. The bank has over 1400 branches across India servicing more than 8 lakh customers. Kotak Securities Limited is among the largest traditional broker in India providing wide range of investment options to its customers including Trading in Equity & Derivatives, Investment in IPO's, Mutual Funds, Fixed Deposits, Bonds and many more share market related investment products. Kotak Sec is the member of BSE and NSE, the popular stock exchanges in India. Company provides stock trading facilities though many ways including trading terminal, website, mobile application, trading though branches and call & trade. Like other tradition brokers in India, Kotak offers facility of Margin Finance, Margin against Securities, Fundamental and Technical analysis, Research Reports & Tips, SMS alerts and Portfolio Management Services (PMS). Kotak Security is also the member of National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) and provides its own depository services to the customers. The 3-in-1 account is the key offering of Kotak Securities. The Trinity Account [3 in 1 Account] offers the combination of broker account, bank account and a demat account. All these accounts are linked together and work seamlessly to make stock market investment very easy. Kotak Securities‟ Trading Platforms Kotak Securities offers multiple trading platforms to suite investor's requirement. Following are the trading platforms available by Kotak Sec: 1. Website Based Trading – A stock treading website which can be accessed through any popular Web Browser. This is the most convenient and popular way to invest with Kotak Securities. Kotak also offers a light weight trading website 'Xtralite', which can be used by investors with slow speed internet. 2. Trading Terminals (KEATProX and FASTLANE) – Kotak offers two different trading terminal based application which are very popular among stock traders. KEATProX is an exe based installable
  • 63. 63 desktop application providing fastest trading experience. FASTLANE is a Java applet based application which gives you a trading terminal kind of experience without any installation on your computer. FASTLANE gives KEATProX like features and the benefits of website based trading as it can be access from anywhere though web browser. 3. Mobile Stock Trading – Kotak offers high speed mobile based application to trade in Stock Market. Through this mobile app, customers can Execute Trades, Monitor Portfolio, View Streaming Quotes and Intraday Charts. 4. Branch Advisory and Call & Trade – Kotak also offers trading facility though its 1400+ branches and though call centers using call & trade facility. Account Types Kotak offers different account types according to users requirement: 1. Auto Invest Auto Invest is a unique Online Trading Account which provide investment planning in Gold ETFs (Exchange Traded Funds), Equities and Mutual Funds to their customers. Gold ETFs are mutual fund schemes that will invest the money collected from their investors in standard gold bullion. Kotak's advisor gives the recommendation according to investor's risk capability and investment plans. Minimum investment of Rs 5000 required for Auto Invest account. 2. Kotak Gateway Kotak Gateway account opens the gateway to a world of investing opportunities for beginners. Kotak Gateway user can trade anywhere, anytime using internet. Kotak also offers call and trade facility. Investor can also trade Currency Derivative using Kotak gateway account. Kotak Securities provide SMS alert, research report, free news and market updates to the account holders. Best feature of Kotak gateway is call and trade facility. Anybody can activate Kotak Gateway account with any amount between Rs20000 to 5, 00,000. This can be in form of cash deposit or the value of the shares you buy. Brokerage will be charged based on the account type. For intraday trading brokerage is .06% both sides for less than 25 lakhs and .023% for more than 25crores. 3. Kotak Privilege Circle Kotak Privilege Circle is the premium investment account offed by Kotak Securities. Along with Kotak Gateway account benefits Kotak provides independent market expertise and support through a dedicated relationship manager and a dedicated customer service desk which provides assistance in opening accounts, handling day-to-day problems, and more. They provides KEAT premium which is an exclusive online tool that lets you monitor what is happening in the market and view your gains and losses in real-time.
  • 64. 64 One can activate Kotak Privilege Circle account with any amount more than Rs.10,00,000 as margin, by way of cash or stock. For intraday trading brokerage is .06% both sides for less than 25 lakhs and .03% for more than 25crores. 4. Kotak Freedom for Mutual Fund Investments. 5. Kotak Super Saver, a Flat Brokerage and a Low Margin account. 6. PMS (Portfolio Management Service), an account for people who need an expert to help to manage their investments. 7. NRI Account, a online trading an investment account for NRI investors. 8. Trinity Account [3-in-1 Account] Trinity Account is an integrated account that helps investors enjoy the benefits of a Online Trading Account, Bank Account, Demat Account on a single platform for your securities transaction. This account gives convenience of fund transfer and online trading. Kotak Securities Brokerage Charges 2013 Account opening fees:  Trading Account Opening Charges (One Time): Rs 750  Trading Annual maintenance charges (AMC): Rs 0  Demat Account Opening Charges (One Time): -  Demat Account Annual Maintenance Charges (AMC): Rs 600 per annum Trading Brokerages: Kotak Gateway (Variable Brokerage) (* All charges are on both sides)  Delivery Based Trades Brokerages: 0.59% - 0.18% (For trading amount of '< 1lakh' to '> 2crore')
  • 65. 65  Intra-day Trades Brokerages: 0.06% - 0.03% (For trading amount of '< 25 lakhs' to '> 5crore')  F&O Trades Brokerages (Intraday): 0.07% - 0.023% (For trading amount of '< 2crores' to '> 25crores')  F&O Trades Brokerages (Settlement): 0.09% - 0.032% (For trading amount of '< 2crores' to '> 25crores')  Options Trades: Rs.100/- per lot Kotak Gateway (Fixed Brokerage) (* All charges are on both sides)  Delivery Based Trades: 0.49%  Intra-day Trades: 0.049%  Futures Trades: 0.049%  Options Trades: Rs.100/- per lot or 1% on premium whichever is higher Kotak Securities Demat Account Charges: Sr Account Head Rate Minimum Payable 1 Dematerialization Rs.50/- per request and Rs.3/- per certificate -- 2 Rematerialisation Rs.10/- for 100 shares Rs. 15/- 3 Debit Transactions - On Market and Off Market 0.04% of the value of securities (Plus NSDL charges as applicable) Rs. 27/- (Plus NSDL charges as applicable) 4 Account Maintenance Charges  Resident Indian  NRI  Rs. 50/-per month  Rs. 75/-per month -- 5 Pledge Charges 0.05% of the value of securities Rs. 30/- 6 Invocation of Pledge 0.04% of the value of securities Rs. 30/- 7 Charge for Client Master change intimation Rs.25/- Kotak Securities Advantages 1. Kotak Securities website provides wide range of investment options. This includes investment in equity, IPO‟s, Bonds, FD‟s, ETF‟s, Mutual Funds, Currency Derivatives etc. 2. Along with the online trading facility, customer gets access to 1400+ branches for help on investment and issue resolution. 3. Kotak Securities provide daily SMS alerts, market pointers, periodical research reports, stock recommendations etc. to help the customers. 4. Online Chat facility is available to support customer. 5. Kotak security offers easy integration of trading account with Citibank, HDFC Bank, UTI Bank and Kotak Mahindra Bank. Kotak Securities Disadvantages
  • 66. 66 1. Kotak Securities is a Full Services Broker. The brokerage changed by them is higher than the Discount Brokers. Standard Chartered standard Chartered – STCI Capital Markets Limited (formerly UTI Securities Ltd), is a leading broking company in India, provides a wide range of financial services including Investment Banking, Institutional Equity & Derivative Broking, Fixed Income, Research, Retail Equity, Portfolio Management, Distribution of financial products and Depository services. On 11 January 2008, Standard Chartered Bank Ltd (SCBM) acquired 49% stake in UTI Securities Limited from Securities Trading Corporation of India (STCI). Accordingly, the name of the company was changed from „UTI Securities Limited‟ to „Standard Chartered – STCI Capital Markets Limited‟. Standard Chartered – STCI Capital Markets Limited is registered as a trading and clearing member with Bombay Stock Exchange Limited (BSE), National Stock Exchange of India Limited (NSE) and MCX Stock Exchange Limited. The Company is also registered as Depository Participant with Central Depository Services (India) Limited (CDSL) as well as National Securities Depository Limited (NSDL). Standard Chartered's Trading Platforms STCI offers 3 different online trading platforms to its customers: 1. Easy Trade: Easy Trade is a powerful and user friendly browser based online trading website for beginners. It provides unique integrated account which link banking, broking, and demat accounts. Trader can get the latest stock quotes, unlimited access to trading history, current order status, access to all back end reports and data. 2. Advanced Trade: Advance Trade is an Applet-based system, designed especially for active traders. Advance Use gives access to their traders to view live streaming quotes which enables them to keep track of real-time price movement. Multiple market watch, message window and trading window, all in one screen help customers to track individual stocks and make timely trades when investing online.
  • 67. 67 3. Super Trade: Super Trade is an advanced, customizable online trading platform built exclusively for active traders. It offers professional and complimentary tools which enable their user to view streaming, intraday, daily and weekly charts, personalized quick stock quote lists and real-time updates. Standard Chartered Brokerage Charges 2013 Account Opening Fees for EASY TRADE:  Trading Account Opening Charges (One Time): Rs 499  Trading Annual maintenance charges (AMC): Rs 0  Demat Account Opening Charges (One Time): Nil  Demat Account Annual Maintenance Charges (AMC): Rs 600 per annum Trading Brokerages: EASY TRADE (Fixed Brokerage) (* All charges are on both sides)  Equity Delivery Based Trades: 0.50%  Equity Intraday Trades: 0.050%  Equity Future: 0.050%  Options Trades: Rs. 100/- per lot STCI Capital Markets offers three kinds of platforms as above. Below are detail about fees and activation charges for each account: 1. Easy Trade: Account activation charges Rs.499/-. 2. Advance Trade: Account activation charges Rs.799/-. 3. Super Trade: Account activation charges Rs.2499/-. Standard Chartered Advantages 1. They provide intraday reports and historical charting. 2. Varity of fee structure to fulfill need of different type of investors. 3. User can access sector-wise information to track sectors and individual scrips within the sector. 4. STCI provides "Quick Mail" tool so user can resolve all the problems online.
  • 68. 68 Comparison with top 4 competitors Sharekhan Angel broking limited IDBI capital Kotak securities limited Standard chartered Type of broker Full Service broker Full Service Broker Full Service Broker Full Service Broker Full Service Broker Supported exchange BSE, NSE, MCX, NCDEX, NSE BSE, NSE, MCX BSE, NSE BSE, NSE, MCX-SX BSE, NSE, MCX Account type Classic Account Angel Diet Paisa Power Classic Kotak Gateway - Fixed Brokerage Easy trade Stock broker fees/charges Trading account opening fees Rs 750 Rs 0 Rs 700 Rs 750 Rs 500 Trading account AMC Rs 400 Rs 347 NIL NIL Demat account opening fees Rs 0 NIL NIL Nil Demat account AMC Rs 400 Rs 0 Rs 350 Rs 600 Rs 600 Trading broking charges CM segment- cash delivery 0.50% 0.40% to 0.10% 0.65% - 0.25% 0.49% 0.50% CM segment- cash intraday 0.10% 0.04% to 0.01% 0.10% - 0.03% 0.049% 0.050% Margin trading F&O segment- futures 0.10% 0.04% to 0.01% 0.10% - 0.03% 0.049% 0.050% F&O segment- options Rs. 100 0.04% to 0.01% Rs 100 per lot Rs 100 Rs 100 Other brokerage charges Minimum brokerage charges 10 paise per share Rs 25 per trade or 2.5% of the trade value 4p for delivery,3p for Intraday & Rs 25
  • 69. 69 whichever is lower. Futures Share broker features 3 in 1 account    Mobile trading      Charting      After trading hour orders     Good till cancelled(GTC)  SMS alert    Online demo     Online portfolio      Investment options available Stock/equity      Commodity     Currency     Initial public offers(IPO)      Mutual funds      Bond/NCD    Debt    Other investment options Customer service offered 24/7 customer service      Email support      Online live chat    Phone support      Toll free number     Through branches      Research/tips/reports published Daily market report      Free tips      Quarterly result analysis     News alert     
  • 70. 70 Terms Explanations Type of broker Brokers in India can be categories by the type of services they provide. There are two popular types of broker; full-service broker and discount broker. 1. Full-service broker Full-service brokers are the traditional broker's who offers almost all kind of investment options and advisory to its customers. 2. Discount Broker Discount broker's offers less number of services but at a much cheaper price. They provide no-frill services and specialized into few investment options. Discount brokers are good for 'do-it-yourself' kind of investors Supported exchange Stocks are traded in stock exchanges. India has two big stock exchanges; BSE and NSE. Commodities are traded in Commodity Exchanges. There are multiple exchanges available in India for commodity trading including MCX, NCDEX, NMCE, ICEX and ACE. Account type Most brokers offer different types of accounts or plans to suit different individual investors need. The below comparison is done for selected account type. Visit broker detail page for more account types. Stock broker fees/charges Trading account opening fees The broker charges an account opening fee to open a new share trading account. The Account Opening fees is generally different for different types of account. This fees is non-refundable Trading account AMC The broker charges an Account Maintenance Fee; also called Annual Maintenance Fee (AMC) for trading account. This fee is payable yearly irrespective to the uses of the account. It is automatically deducted from your account. Demat account opening fees The broker charges Demat Account Opening Fee when the new Demat account is opened. Demat account AMC The broker charges an Demat Account Maintenance Fee; also called Demat Annual Maintenance Fee (AMC) for Demat-account. The Demat AMC is charged quarterly and in most cases automatically deducted from your account Trading broking charges CM segment- cash delivery Brokerages charged for buy and sell orders in the Cash Segment when the transaction is settled by delivery CM segment-
  • 71. 71 cash intraday Brokerages charged for buy and sell orders in the Cash Segment when transaction is Squared-off on the same day. Margin trading Brokerages charged for buy and sell orders in the Margin Trading. In Margin Trading, trader takes buy/sell positions in stock with the intention of squaring off the position within the same settlement cycle. F&O segment- futures Brokerages charged for buy and sell orders in the Future Trading. F&O segment- options Option is a derivative product used to hedge unexpected up and owns in the market. It is a contract, which gives the buyer the right, but not the obligation to buy or sell shares of the underlying security at a specific price on or before a specific date. There are two kinds of options: Call Options and Put Options. A Call Option is an option to buy a stock at a specific price on or before a certain date. The price paid for call option is called the 'option premium'. The option premium is the money which you pay when you decide not to use the option to buy the stock. In simple term Call options are like „Security Deposit' paid in advance to rent a house. A Put Option is an option to sell a stock at a specific price on or before a certain date. The 'put premium' is the money which you pay when you decide not to use the option to sell the stock. In Simple terms Put Option is like an insurance policy. With a Put Option, a trader can insure a stock by fixing a selling price. Options are traded in lots specified by the stock exchanges. Broker charges brokerage on the premium paid for Call or Put Option. Some broker charges a fixed rate per lot i.e. ICICI charges Rs 65 per lot, while other charges in % of premium paid. Other brokerage charges Other brokerage charges paid. Minimum brokerage charges The minimum brokerage charged by the broker for a transaction. This is an important factor when considering trading in penny stocks. Minimum brokerage charged by broker could be different for each segment. The charges compared here are for Cash Segment. Note: As per SEBI rule, a broker can charge a maximum of 2.5% of a transaction as brokerage. Share broker features 3 in 1 account Broker offers 3-in-1 account including Trading Account, Demat Account and Banking Account. The 3 in 1 account make is very easy for beginners and casual investors. Mobile trading Broker offers mobile trading platform. Charting Broker offers Basic Charts and Technical Charts of Stock and Commodities on its portal
  • 72. 72 and trading terminals. These online charts help in technical analysis. Automated trading Broker who offers software for automated online trading to its customer. Automated trading is also known as robotic trading or Computer trading or Program Trading. After trading hour orders Broker who provides facility to place after trading hours orders. The orders are send to exchange on the next trading day. Good till cancelled(GTC) Good Till Cancelled (GTC) allows customers to place an order which remains in the system until it is executed or it reaches the specified number of days. Through GTC feature, you can place buy and sell limit orders in equity scripts of your choice; specifying the period for which you want the order instruction to be valid. SMS alert Broker sends SMS alerts for major transactions. Online demo Broker provides online live demonstration of its trading platform and back office. Online portfolio Broker offers an online portfolio where the customer can view the profit and losses against the holdings, value of the holdings and other useful live information. It provides consolidate view of the investment. Investment options available Stock/equity Broker allows investment and trading in stocks which are listed in the stock exchange where the broker has membership. Commodity Broker allows investment and trading in commodity. Currency Broker allows investment and trading in commodity. Initial public offers(IPO) Broker allows investment in Initial Public Offers (IPO's). Mutual funds Broker allows investment in Mutual Funds. Bond/NCD Broker allows investment in Bonds and NCD's Debt Broker allows investment in Dept products like Fixed Deposits, Fixed Maturity Plans (FMP), Monthly Income Plans (MIP), PPF, NSC etc. Other investment options Other investment options offered by the broker including Insurance, Pension Plans etc. Customer service offered 24/7 customer service Broker offers 24 / 7 customer service. Email support Broker offers customer service though email. Online live chat Broker provides live chat facility on its website for customer support Phone support Broker offers customer service though phone. Toll free number Broker provides toll free phone numbers for customer support. Through branches Broker offers customer service though the network of branches it has in most of the cities across India. Research/tips/reports published Daily market Broker publishes daily market report.
  • 73. 73 report Free tips Broker provides free stock and commodity tips to its customers. Quarterly result analysis Broker publishes analysis of listed company's quarterly results. News alert Broker publishes market news alerts on its website and trading platforms. Questionnaires Questionnaire: 1(for the existing traders of Idbi-capital) 1. Name : Address: 2. How old are you– o 18- 30 o 31- 40 o 41- 50 3. I have a list of few products/services; tell me which of these do you have? Television o Computer/ laptop/tab o Refrigerator o Mobile phone (Gprs enabled) o Data card/ any internet enabling devices o Business newspapers/magazines o 3. Are you aware of online trading? Yes No 4. Do you trade online? Yes No 5. In which sector do you trade generally? o Auto o Power o IPO FMCG 6. Who inspired you for trading?
  • 74. 74  Friends  Relatives  Newspaper/magazines  Any trading awareness programs on television  Brokers from any broking firms Any other 7. What type of trading do you prefer?  Intraday  Delivery based  Depends upon the situation 8. When you think of Broking firm which brands come to your mind? 9. Are you aware of these of the following brands? Have heard Have heard but never trade Have trade occasionally Trade regularly Never heaard Idbi Capital Kotak securities Angel broking Share khan Standard chartered 10. Which broking firm offers you more no of services in Demat account? IDBI capital o Share khan o Standard chartered o Kotak securities o Angel broking o 11. For brokerage which broking firms do you feel the most effective? IDBI capital o Share khan o Standard chartered o Kotak securities o Angel broking o
  • 75. 75 12. Rate the following factors of online trading which you feel are important, on a 5 point scale (1 being the lowest and 5 being the highest) 5 4 3 2 1 security o o o o o instant online transfers o o o o o time saving o o o o o convenience o o o o o brokerages o o o o o 13. While choosing a broking firm which of these are important for you and please rate them on a 5 point scale (1 being the lowest level of satisfaction and 5 being the highest) 5 4 3 2 1 24/7 customer service o o o o o Email support o o o o o SMS alert o o o o o Expert guidance o o o o o Online demo o o o o o Free tips o o o o o Quarterly result analysis o o o o o News alert o o o o o less account opening charges o o o o o Less broking charges o o o o o Less annual maintenance charges o o o o o No hidden charges o o o o o 14. Which of the firms do you know provides trading-software for self-trading? know Don’t know yes no IDBI capital o o o Share khan o o o Standard chartered o o o Kotak securities o o o Angel broking o o o
  • 76. 76 15. Do you have a Demat account? o Yes o No 16. If yes then specify which Demat account do you have? IDBI capital o Share khan o Standard chartered o Kotak securities o Angel broking o 17. Do you have a trading account? o Yes o No 18. If yes then specify which trading account do you have? IDBI capital o Share khan o Standard chartered o Kotak securities o Angel broking o 19. Do you have a 3 in 1 account? (Savings + Demat+ Trading) o Yes o No 20. If you have a 3 in 1 account, please specify which one you have? IDBI capital o Share khan o Standard chartered o Kotak securities o Angel broking o 21. If you have multiple trading or 3 in 1 accounts please specify which accounts do you use most often? IDBI capital o Share khan o Standard chartered o Kotak securities o Angel broking o
  • 77. 77 22. If you are trading with IDBI capital then please rate these attributes from 5 point scale? (1 being the lowest and 5 being the highest) 5 4 3 2 1 24/7 customer service o o o o o Email support o o o o o SMS alert o o o o o Expert guidance o o o o o Online demo o o o o o Online portfolio o o o o o Free tips o o o o o Quarterly result analysis o o o o o News alert o o o o o less account opening charges o o o o o Less broking charges o o o o o Less annual maintenance charges o o o o o No hidden charges o o o o o 23. How many years are you trading with IDBI capital? o .5 to 1 yr o 1 to 3 yr o More than 3 yr 24. How much you paid brokerage last year? o <1000 o 1000 to <3000 o 3000 to <5000 o 5000 to <10000 o 10000 to <25000 o 25000 to <50000 o 50000 to <100000 o 100000 to <200000 o 100000 to <300000 o >300000 25. Which tariff holder do you are?
  • 78. 78 o Flexi-Gold (FG) o FG junior o FG 5000 o FG 10000 o FG 25000 o FG 50000 o FG 100000 o Classic o Card rate 26. Most of the time I (last 3months) o lose instead of gain o gain instead of lose 27. I lose due to o Unpredictable Market fluctuations o Bad expert advices of my Broker o Slow transactions (firms mistake) o Software provided by the firm is not efficient o My irrational Judgments 28. Do you follow following during trading with IDBI capital o Our experts o Our news alerts o SMS alerts 29. If you follow the above during trading please share your view o They are really helpful & I can trust upon o Somewhat helpful o It don’t affect my decision o Not bad that much o I feel they are not up to date and I can’t trust upon 30. Do you feel any difference what they (agents / brokers) told about the firm and what the reality is o Yes I am unhappy oYes I was not told about the hidden charges oYes I was not getting any kind of after service that I was told oI was told of more facilities but not getting that much oTariff suggestions are in favor of the firm not me oI think they are much more target oriented rather customer o No I am happy 31. Hve you seen any advertisement of the followings in past 3 months? o Yes o No 32. Out of the following which business newspapers do you subscribe?
  • 79. 79 o Economic times o Mint o Money tools o Business standard o Any other o No I don‟t subscribe 33. Out of the following which are the finance sites do you visit regularly? o Mint o Yahoo finance o Chittorgarh o Money control o No I don‟t visit Questionnaire: 2(For those who aware but don’t trade) Name: institution: 1. How old are you? o 18- 30 o 31- 40 o 41- 50 2. I have a list of few products/services; tell me which of these do you have? Television o Computer/ laptop/tab o Mobile phone (Gprs enabled) o Data card/ any internet enabling devices o Business newspapers/magazines o 3. Are you aware of online trading? o Yes o No 4. Do you trade online? o Yes o No 5. I don’t trade because o I am aware of trading but don’t have sufficient knowledge for trading o I don’t have time
  • 80. 80 o I think I need a demo before start o NO broking firms ever approached me 6. Do you think a demo trading /session game will somehow help you to overcome the fear hurdle? o Yes o No 7. Which of the followings do you think will affect my trading decision positively? o Demo tour regarding trading o Supportive broking firm o Advertisements of broking firms regarding trading o Convenient plan for the beginners 8. Do you subscribe any of the followings? o Economic times o Mint o Business standard o Business line o Out look o Money tools o The economic times wealth o Any other business newspapers/magazines 9. While with the above I (last 2 months) o Have come across advertisements of IDBI capital o Haven’t 10. Do you feel advertisements in the above will have any impact on trading behavior of customers? o Yes o No 11. When do you think of broking firms which firms come to your mind? 12. I have a list of broking firms please select which do you know? IDBI capital Share khan Standard chartered Reliance money Angel brokers Icici direct Anand rathi 13.Do you use internet on your phone? o Yes
  • 81. 81 o No 14. Does your mobile phone is java supported? o Yes o No 15. Do you use apps on your phone? o Yes o No 16. Do you use social media for communication? o Yes o No 17. Do you feel social media advertisements increases awareness? o Yes o No 18. Have you ever come across advertisement of IDBI capital in past 3 month? o Yes o No Summary of the questionnaires Questionnaire: 1 Gender Male 7 70% Female 3 30% Age
  • 82. 82 18-25 1 10% 26-35 6 60% 35 onwards 3 30% “The above pie chart shows 60 % traders belong to the age bracket of 26-35, 10% within 18-25. If we target the 10% age bracket with in some years we will have more no of traders and we will able to enter into a new segment of traders” I have a list of few products/services; tell me which of these do you have? television 9 computer/laptop/tab 7 mobile phone (GPRS enabled) 10 business newspapers/ magazines 9 0 2 4 6 8 10 12 Out of 10 respondants Out of 10 respondants
  • 83. 83 Are you aware of online trading? Yes 10 100% No 0 0% You trade online? Yes 9 90% no 1 10% Who inspired you for trading? Friends 1 10% Relatives 0 0% Newspapers/ Magazines 1 10% Any trading awareness programs on television 3 30% Brokers From any broking firms 4 40% any other 1 10%
  • 84. 84 What type of trading do you prefer? Intraday 2 20% Delivery based 5 50% Depends on the situation 3 30% When you think of Broking firm which brands come to your mind? “As we are not doing advertisement most often that’s why Idbi capital has 30% top of mind which is not a healthy indication. If top of mind will not increase awareness will decrease. We need to increase our advertisement” Idbi Capital Are you aware of these of the following brands? 0 1 2 3 4 5 6 sbi Idbicapital Anandrathi kotaksecurities Indiabulls IIFL Religare Motilaloswal Sharekhan Bonanza Ventura Standardchartered Out of 10 rspondants Out of 10 rspondants
  • 85. 85 Have heard Have heard but never trade Have trade occasionally Trade regularly Never heard Idbi capital 0 0 7 3 0 Kotak securities 0 10 0 0 0 Angel broking 0 10 0 0 0 Share khan 0 7 1 0 2 Standard chartered 0 9 0 0 1 “If we look at the above table carefully we will find out of 10, 7 are trading occasionally and 3 are trading regularly. We have to talk to them one by one why they are not trading regularly which will be very helpful to enhance future service” Which broking firm offers you more no of services in Demat account? Idbi capital 10 83% Share khan 2 17% standard chartered 0 0% kotak securities 0 0% angel broking 0 0% For brokerage which broking firms do you feel the most effective? Idbi capital 9 90% share khan 1 10% standard chartered 0 0% kotak securities 0 0% 0 2 4 6 8 10 12 Idbi capital Kotak securities angel broking sharekhan standard chartered never heard trade regularly have trade occasionally Have heard but never trade Have heard
  • 86. 86 angel broking 0 0% Rate the following factors of online trading which you feel are important, on a 5 point scale 5 4 3 2 1 Weighted average security 7 2 1 0 0 4.6 instant online transfers 9 1 0 0 0 4.9 time saving 4 5 1 0 0 4.3 convenience 3 6 1 0 0 4.2 brokerages 10 0 0 0 0 5 While choosing a broking which of these are important for you and please rate them on a 5 point scale 5 4 3 2 1 Weighted average 24/7 customer service 9 1 0 0 0 4.9 Email support 8 2 0 0 0 4.8 SMS alert 9 1 0 0 0 4.9 Expert guidance 10 0 0 0 0 5 Online demo 4 6 0 0 0 4.4 3.8 4 4.2 4.4 4.6 4.8 5 security instant online transfers time savingconvenience brokerages what they need what they need
  • 87. 87 Free tips 7 3 0 0 0 4.7 Quarterly result analysis 10 0 0 0 0 5 News alert 6 4 0 0 0 4.6 less account opening charges 3 6 1 0 0 3.9 Less broking charges 10 0 0 0 0 5 Less annual maintenance charges 5 3 2 0 0 4.3 No hidden charges 10 0 0 0 0 5 If you are trading with IDBI capital then please rate these attributes from 5 point scale? 5 4 3 2 1 Weighted average 24/7 customer service 3 5 1 0 1 3.2 Email support 4 5 1 0 0 3.6 SMS alert 8 2 0 0 0 4.8 Expert guidance 7 2 0 1 0 4.3 Online demo 2 6 1 1 0 3.9 Free tips 2 7 0 0 1 3.9 Quarterly result analysis 7 2 1 0 0 4.6 News alert 4 5 0 1 0 4.2 less account opening charges 0 8 2 0 0 3.8 Less broking charges 1 0 2 5 2 2.3 Less annual maintenance charges 1 6 2 0 1 3.6 No hidden charges 9 0 0 1 0 4.7
  • 88. 88 If we look at the above chart we can differentiate between “what they need” and “what they are getting from Idbi capital”. Major sections those affected are “24/7 customer service”, “less broking charges”, “e-mail support”, I think other sections can be developed by little effort Customers need less broking charges and they are thinking Idbi is unable to provide less broking charges. For which some of the traders are moving to the competitors. They are feeling “SMS alert” , “expert guidance”, “news alert”, “quarterly result analysis” & “no hidden charges” are the sections where they are finding less difference between what they need and what they are provided, which is a good sign for Idbi Which of the firms do you know provides trading-software for self-trading? Do you have a Demat account? 0 1 2 3 4 5 24/7 customer service Email support SMS alert Expert guidance Online demo Free tips Quarterly result analysis News alert less account opening charges Less broking charges Less annual maintenance charges No hidden charges what they need what they are getting from Idbi capital know Don’t know yes no IDBI capital 10 0 0 Share khan 5 0 5 Standard chartered 3 1 6 Kotak securities 4 0 6 Angel broking 2 0 8
  • 89. 89 Yes 10 100% No 0 0% Do you have a trading account? Yes 10 100% No 0 0% If yes then specify which Demat account do you have? Idbi capital 10 91% share khan 1 9% standard chartered 0 0% kotak securities 0 0% angel broking 0 0% 0 5 10 15 Idbi capital share khan standard chartered kotak securities angel broking Out of 10 respondants Out of 10 respondants
  • 90. 90 If yes then specify which trading account do you have? Idbi capital 10 91% share khan 1 9% standard chartered 0 0% kotak securities 0 0% angel broking 0 0% Do you have a 3 in 1 account? Yes 0 0% No 10 100% “This indicates we have very less no of 3in1 account holders, we have to educate the new customers who are coming to Idbi for savings account what 3 in 1 account is & which will not only help to increase the 3 in 1 account holders but also we will have more no of traders or will have no of future traders ” If you have a 3 in 1 account, please specify which one you have? No responses yet for this question. 0 2 4 6 8 10 12 Idbi capital share khan standard chartered kotak securities angel broking Out of 10 respondants Out of 10 respondants
  • 91. 91 If you have multiple trading or 3 in 1 accounts please specify which accounts do you use most often? Idbi capital 1 100% share khan 0 0% standard chartered 0 0% kotak securities 0 0% angel broking 0 0% How many years are you trading with IDBI capital? less than 1 year 1 10% 1-3 years 8 80% more than 3 years 1 10% How much you paid brokerage last year? <1000 0 0% 1000 to <3000 3 30% 3000 to <5000 3 30% 5000 to <10000 3 30% 10000 to <25000 1 10% 25000 to <50000 0 0% 50000 to < 100000 0 0%
  • 92. 92 100000 to 200000 0 0% 200000 to 300000 0 0% >300000 0 0% Which tariff holder do you are? FG junior 1 10% FG 5000 0 0% FG 10000 2 20% FG 25000 0 0% FG 50000 0 0% FG 100000 0 0% classic 4 40% card rate 3 30% Most of the time I (last 3months) lose instead of gain 5 50% gained instead of lose 5 50% I lose due to unpredictable market fluctuations 9 60% bad expert advices of my broker 1 7% slow transactions(firm's mistake) 0 0% software provided by the firm is not efficient 0 0% my irrational Judgment 5 33%
  • 93. 93 Do you follow following during trading with IDBI capital our experts 9 35% Our news alerts 8 31% SMS alert 9 35% If you follow the above during trading please share your view they are really helpful & I can trust upon 4 40% somewhat helpful 6 60% It don't affect my decision 0 0% 0 2 4 6 8 10 unpredictable market… bad expert advices of my… slow transactions(firm's… software provided by the… my irrational Judgment Out of 10 respondants Out of 10 respondants 7.5 8 8.5 9 9.5 our experts Our news alerts SMS alert out of 10 respondants out of 10 respondants
  • 94. 94 not bad that much 0 0% I feel they are not up to date and I can't trust upon 0 0% Do you feel any difference what they (agents / brokers) told about the firm and what the reality is Yes I was not told about the hidden charges 0 0% Yes I was not getting any kind of after service that I was told 0 0% I was told of more facilities but not getting that much 0 0% Tariff suggestions are in favor of the firm not me 0 0% I think they are much more target oriented rather customer 1 10% No I am happy 9 90% Have you seen any advertisement of the followings in past 3 months? Yes 1 10% No 9 90% Out of the following which business newspapers do you subscribe? 0 2 4 6 8 10 Yes I was not told about the hidden… Yes I was not getting any kind of after… I was told of more facilities but not… Tariff suggestions are in favor of the… I think they are much more target… No I am happy Out of 10 respondants Out of 10 respondants
  • 95. 95 economic times 6 60% mint 0 0% money tools 0 0% business standard 4 40% any other 0 0% no 0 0% Out of the following which are the finance sites do you visit often? mint 0 0% yahoo finance 5 29% reliance money 3 18% Chittorgarh 2 12% money control 6 35% no 1 6% 0 1 2 3 4 5 6 7 mint yahoo finance reliance money Chittorgarh money control no Out of 10 respondants Out of 10 respondants
  • 96. 96 Questionnaire: 2 How old are you? 18-30 3 0 100 % 31-40 0 0% more than 40 0 0% I have a list of few products/services; tell me which of these do you have? Are you aware of online trading? Television Computer/ Lpatop/ Tab GPRS enabled Data card / any internet enabling devices Business news papers/Ma gazines No of respondants have 17 22 29 29 25 0 5 10 15 20 25 30 35 No of respondants have (out of 30)
  • 97. 97 Yes 29 97% No 1 3% Do you trade online? Yes 3 10% No 27 90% I don’t trade because I am aware of trading but don’t have sufficient knowledge for trading 25 31% I don’t have time 13 16% I think I need a demo before start 24 30% No broking firms ever approached me 18 23%
  • 98. 98 Do you think a demo trading /session game will somehow help you to overcome the fear hurdle? Yes 28 93% No 2 7% Which of the followings do you think will affect my trading decision positively? Demo tour regarding trading 27 35% Supportive broking firm 24 31% Advertisements of broking firms regarding trading 18 6% Convenient plan for the beginners 22 28% 0 10 20 30 I am aware of trading but don’t have sufficient knowledge for trading I don’t have time I think I need a demo before start No broking firms ever approached me Out of 30 respondants Out of 30 respondants
  • 99. 99 Do you subscribe any of the followings? Economic Times 15 38% Mint 7 18% Business Standard 6 15% Business Line 0 0% Out look 2 5% Money Tools 1 3% The economic times wealth 1 3% Any other business newspapers/magazines 7 18% 0 5 10 15 20 25 30 Demo tour reagrding trading Supportive broking firm Adevrtisements of broking firms regarding trading convinient plan for the beginners Out of 30 respondants Out of 30 respondants
  • 100. 100 While with the above I (last 2 months) Have come across advertisements of IDBI capital 3 10% Haven’t 27 90% Do you feel advertisements in the above will have any impact on trading behavior of customers? 0 2 4 6 8 10 12 14 16 Out of 30 respondants Out of 30 respondants
  • 101. 101 yes 24 80% no 6 20% When do you think of broking firms which firms come to your mind? 0 2 4 6 8 10 12 IciciDirect Religare RelianceMoney standardchartered BonanzaPortfolio Sharekhan IIFL Indiabulls Kotak Karvy Geojit IdbicapitalOut of 30 respondants Out of 30 respondants
  • 102. 102 I have a list of broking firms please select which do you know? Idbi capital 13 14% Share khan 26 19% Standard chartered 24 18% Reliance money 15 11% Angel brokers 10 7% Icici direct 21 15% AnandRathi 21 15% Do you use internet on your phone? 0 5 10 15 20 25 30 Idbi capital Share khan Standard Chartered Reliance Money Angel brokers icici direct Anand Rathi Out of 30 respondants Out of 30 respondants
  • 103. 103 yes 27 90% no 3 10% Does your mobile phone is java supported? yes 25 83% no 5 17% Do you use apps on your phone? yes 26 87% no 4 13% Do you use social media for communication?
  • 104. 104 yes 27 90% no 3 10% Do you feel social media advertisements increases awareness? yes 29 97% no 1 3% Have you ever come across any advertisement of IDBI capital in past 3 months? yes 4 13% no 26 87%
  • 105. 105 Recommendations:  Increase the reach of advertisement from leaflets to o Newspapers and magazines such as Business standard, Economic times and others which is subscribed most o Social media like facebook, zorpia etc. o Financial web sites like www.moneycontrol.com, www.yahoofinance.com, www.reliancemoney.com etc which are viewed most by the traders  Lunch an application like moneycontrol or times of India for pcs, tabs and androids which will help in increasing the awareness  Target different b-schools and arrange an awareness program which will constitute a Demo game how trading occurs which will help to reduce the fear of trading  Update the website in a regular manner  Broking charge and 24/7 customer service sections need to be taken care of  Have to educate the new customers who are coming to Idbi for savings account, what 3 in 1 account is & which will not only help to increase the 3 in 1 account holders but also we will have more no of traders or will have no of future traders  We have to arrange small meeting with the traders who are trading occasionally now a days or somewhat not trading but are the regular traders in the past, find out the reason for it and try to solve it. Which needs the update of database in a regular manner  Most of the traders belong to the age bracket of 26-35, but less number of traders lies within 18-25. If we target the later age bracket, with in some years we will have more no of traders and we will able to enter into a new segment of traders
  • 106. 106 The Importance of Capital Market for the Economic Development of India Introduction Capital Market is a channel through which the wealth of savers are put into long-term productive use. Both the Equity and Bond markets are parts of Capital Markets. Governments and Companies use Capital Markets to raise money for their long-term investments. The capital is raised through debt and equity instruments. Capital Markets are of two types: Primary market is a market for new shares and secondary market is a market for trading existing securities. History of Capital Markets The origin of Capital Markets goes back to the early 17th century. The Dutch were the pioneers in capital markets and they successfully leveraged the power of capital markets to withstand the British and won three wars against them, despite being a smaller nation in all aspects. Finally, British collaborated with the Dutch and became an expert in leveraging Capital Markets that led to the rise of the British Empire. One major reason for the success of British Empire over the French, despite France having population three times that of the British, was that they were able to raise capital from public at low interest rates, whereas it‟s counter parts, such as French didn‟t have superior financial markets and their cost of raising the capital from public was very high. In the United States of America, the stabilization of securities market begun with the passing of the “Blue Sky Law” in 1911 in the Kansas State to protect investors through anti-fraud provisions, regulation of brokers, dealers and registration of securities. The technology innovation in United States made them the biggest economy in the world. Information Technology led to paradigm shift and revolutionized the structure and functioning of Capital Markets by reducing information asymmetry and assisting faster settlements of transactions. The most significant development in Capital Markets is the way the technology has erased the geographical boundaries. The story of Capital Markets in India dates back to the 18th century when trading shares of East India commenced. The real story of India‟s Capital Markets started in July 1875 with the formation of Stock Exchange in Mumbai by the brokers. India‟s Capital Market in terms of GDP raised from 75 percent in 1995 to 130 percent of GDP in 2005. But the relative growth compared to US, Malaysia and South Korea remains low, indicating immense untapped potential. Significance of Capital Markets Allocation of Capital: One of the major economic benefits generated by development of the Capital Markets is improved allocation of capital. The prices of Equity and Debt respond immediately to change in
  • 107. 107 market conditions and quickly embodied in current asset prices. The signal created by the price change encourages or discourages capital inflow to an industry/company. Allocation of Risk: The other major economic benefit generated by development of the Capital Markets is improved allocation of Risk. Capital Markets facilitates investors to earn returns based on their risk taking ability. Investors invest in high-risk instruments either because they are less risk averse or because the new risk is unaffected or negatively correlated with other investments in the portfolio. Mobilization of Savings: Capital Markets is a good channel to move idle savings to most productive units in the economy. In any economy savings are moved to borrowers through Capital Markets or through Banking Financial Corporations/ Non-Banking Financial Corporations. In the first case the transaction occurs through the exchange of securities. In case of common stock the transfer results in ownership and in case of debt there is a contractual obligation to pay interest rate and debt. The advantage of investing in Capital Markets is the price of the securities fluctuates in response to change in supply and demand and can be brought and sold to third parties. As a result, the investor usually has a good idea of what the securities are worth and can obtain liquid funds by selling the securities. On the other hand, in the second case the investor doesn‟t have claim over the ultimate beneficiary of the funds and the price of the claim doesn‟t fluctuate in response to shift in supply and demand. Policy Making: Capital Markets play an important role in improving policy framework of a country. This is because when policy makers embark on bad policies the equity and bond prices tend to fall. Capital markets anticipate the future prospects of a country thus they reduce politicians incentives to do things that provide short-term gains, but that brings long-term costs that will hurt the economy. The postponement of new GAAR proposal and Retrospective taxation amendments shows how Capital Markets impact policy making. After amendment of GAAR and Retrospective taxation amendments in budget last year (2012) both FDI and FII inflows dropped and stock market fell down that led to fall in rupee value and credit rating by top rating agencies. Micro, Small and Medium Enterprises (MSME): Traditionally MSME are the ones that faced difficulty in obtaining capital at low interest rate, but MSME sector contributes 8% of the country's GDP, 45% of the manufactured output and 40% of our exports. It provides employment to about 6 crore people and are the largest generator of employment in Indian Economy. Apart from the facts mentioned above, about the significance of Capital Markets, there is a vast amount of empirical data that supports the importance of Capital Markets facilitating economic growth. The view that Capital Markets is associated with superior economic performance can be verified by looking the correlation between Real GDP VS performance of Capital Markets in developed economies. Below is the list of superior economic performance in five major respects in countries with good Capital Market environment.  Higher productivity growth  Higher real-wage growth  Greater employment opportunities  Greater macroeconomic stability  Greater homeownership
  • 108. 108 Conclusion If one looks into history and traces back the reasons for flourishing of economies such as Dutch and United Kingdom the reasons for the success of these economies lies in piping the public saving in to long-term investments. The Dutch were the first to procure funds from public; they raised capital to trade and maintain battle ships in order to protect their ships from the pirates. British had replicated the Dutch financial system and became an Empire and eventually the countries that replicated good Capital Market practices, like United States, also flourished. The Capital Markets play a significant role in any economy from allocation of Capital and Risk to Policy Making. If there is any single factor that makes a huge impact in improving the GDP of a country, it is the effective allocation of capital to the Industry and Government. Capital Market is the best channel to route the savings into long-term productive use. If we look in to the economy and find the enterprises that were hit by high cost of capital, one can observe that MSME that provides highest number of employment opportunities were worst hit by it. If a country develops and adopts best Capital Market practices they create multiple effects and helps in reviving the economy. The SME Exchange is a welcome move for the Small and Medium Scale Enterprises, but it is alone not enough to revive MSME. Capital market is the heart of any economy through which the savings are channelized into effective long-term investments. A developed and vibrant Capital Market will immensely contribute towards speedy economic growth and development.
  • 109. 109 REFFERENNCES: http://www.moneycontrol.com http://www.chittorgarh.com/ https://www.idbipaisabuilder.in http://in.finance.yahoo.com/ http://www.sharekhan.com/stock-market/11/home.htm http://www.angelbroking.com/ www.icicidirect.com www.wikipedia.org www.investopedia.com www.khanacademy.org www.reliancemoney.com Book: Applied business statistics by KEN BLACK