History of stock broking waste

1. History of Stock Broking
The history of stock brokers can be traced back to the origins of the first stock exchange in 1602
at Amsterdam. Even before that brokers are said to have existed in France dealing with
government securities. The Amsterdam Stock Exchange was involved in buying and selling of
shares for the Dutch East India Company. However, the first real stock exchange came up in
Philadelphia in the United States during the late 18th century. Later it was the New York stock
exchange which saw a rise in its popularity. Wall Street, as it was called, became the hub of
brokerage activities. Earlier stock brokers were largely unorganized, but later most of them
joined hands to form institutes and organizations. Till the 1980's stock broking services were
used only by the wealthy class who could afford them. Later with the advent of the Internet,
stock broking became very easy. Thus, the price tag on stock brokers lowered considerably and
their services became available even to the common man. The stock broking duties are now
mostly taken up by major organizations with the smaller companies being absorbed by them. In
India, too with increasing globalization the major corporations are penetrating deeper into the
society.
History of Stock Exchanges in India:
Stock markets refer to a market place where investors can buy and sell stocks. The price at which
each buying and selling transaction takes is determined by the market forces (i.e. demand and
supply for a particular stock). Let us take an example for a better understanding of how market
forces determine stock prices. ABC Co. Ltd. enjoys high investor confidence and there is an
anticipation of an upward movement in its stock price. More and more people would want to buy
this stock (i.e. high demand) and very few people will want to sell this stock at current market
price (i.e. less supply). Therefore, buyers will have to bid a higher price for this stock to match
the ask price from the seller which will increase the stock price of ABC Co. Ltd. On the contrary,
if there are more sellers than buyers (i.e. high supply and low demand) for the stock of ABC Co.
Ltd. in the market, its price will fall down. In earlier times, buyers and sellers used to assemble
at stock exchanges to make a transaction but now with the dawn of IT, most of the operations are

2. done electronically and the stock markets have become almost paperless. Now investors don„t
have to gather at the
Exchanges, and can trade freely from their home or office over the phone or through
internet

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Introduction to Topic
Introduction to Company
Review of Literature
Objectives (if possible in points!!)
Methodology
Findings and Interpretations
Conclusion & Recommendations
Annexures
Methodology
Findings and Interpretations
Conclusion & Recommendations
To study the perception of customers of demate account in Karvy Stock Broking Ltd
Annexures

4. REVIEWOFLITERATURE
Meaning
and definition: According to Philip Kotler ―Competitor Analysis refers to the process of
identifying key competitors, assessing their objectives, strategies, strength and weaknesses, and
reaction patterns, and selecting which competitors to attack or avoid.‖ Once a company
identifies its primary competitors, it must ascertain their strategies, objectives, strength and
weaknesses. Strategies: A group of firms following the same strategy in a given target market is
called a strategic group. Objectives: Once a company has identified its competitors and their
strategies, it must ask; what is each competitor seeking in the marketplace? What drives each
competitor„s behavior? Many factors shape a competitor„s objectives, including size, history,
current management, and
Financial situation. If the competitor is a division of a larger company, it is important to
know whether the parent company is running it for growth, profits, or milking it. Strengths and
Weaknesses: A company needs to gather information about each competitor„s
strength and weaknesses. In general, a company should monitor three variables when analyzing
competitors:
1Share of market: the competitor„s share of the target market.
2 Share of mind: the percentage of customers who named the competitor in responding to the
statement, ―Name the first company that comes to mind in this industry.‖
3.Share of heart: the percentage of customers who named the competitors in responding to the
statement, ―Name of the company from which you would prefer to buy the product.II
Companies that make steady gains in mind share and heart share will inevitably make gains in
market share and profitability. To improve market share, many companies benchmark their most
successful competitors, as well as other world-class performers.
Identifying competitors: Normally, identifying competitors would seem a simple task. At the
narrowest level, a company can define its competitors as other companies offering similar
products and services to the same customers at similar prices.

5. Assessing Competitors: Having identified the main competitors, marketing management now
asks: What are competitor„s objectives—what does each seek in the marketplace? What is each
competitor„s strategy? What are various competitor„s strength and weaknesses, and how will
each react to actions the company might take?
Determining Competitor’s Objectives: Each competitor has a mix of objectives. The company
wants to know the relative importance that a competitor places on current profitability, market
share growth, cash flow, technological leadership, service leadership, and other goals. Knowing
a competitor„s mix of objectives reveals whether the competitor is satisfied with its current
situation and how it might react to different competitive actions. For example, a company that
pursues low-cost leadership will react much more strongly to a competitor„s cost-reducing
manufacturing breakthrough than to the same competitor„s advertising increase.
Identifying Competitor’s Strategies: The more that one firm„s resembles another firm„s strategy,
the more the two firms complete. In most industries, the competitors can be sorted into groups
that pursue different strategies. A strategic group is a group of firms in an industry following the
same or a similar strategy in a given target market. Assessing Competitor‟s Strength and
Weaknesses: Marketers need to assess each competitor„s strength and weaknesses carefully in
order to answer the critical question: What can our competitors do? As a first step, companies
can gather data on each competitor„s goals, strategies, and performance over the past few years.
Admittedly, some of this information will be hard to obtain. For example, business to business
marketers find it hard to estimate competitors„ market shares because they do not have the same
syndicated data services that are available to consumer packaged-goods companies.Companies
normally learn about their competitors strength and weaknesses through secondary data, personal
experience, and word of mouth. They can also conduct primary marketing research with
customers, suppliers, and dealers. Or they can benchmark themselves against other firms,
comparing the company„s products and processes to those of competitors or leading firms in
other industries to find ways to improve quality and performance. Benchmarking has become a
powerful tool for increasing a company„s competitiveness. Estimating Competitor‟s Reactions:
next, the company wants to know: what will our competitors do? A competitor„s objectives,
strategies, and strength and weaknesses go a long way toward explaining its likely actions. They
also suggest its likely rections to company moves such as price cuts, promotion increases, or
new-product introductions. In addition, each competitor has a certain philosophy of doing

6. business, a certain internal culture and guiding beliefs. Marketing managers need a deep
understanding of a given competitor„s mentality if they want to anticipate how the competitor
will act or react. Selecting competitors to Attack and Avoid A company has already largely
selected its major competitors through prior decisions on customer targets, distribution channels,
and marketing-mix strategy. Management now must decide which competitors to complete
against most vigorously.
. Strong or Weak Competitors: The company can focus on one of several classes of competitors.
Most companies prefer to complete against weak competitors. This requires fewer resources and
less time. But in the process, the firm may gain little. You could argue that the firm also should
complete with strong competitors in order to sharpen its abilities.
A useful tool for assessing competitor strengths and weaknesses is customer value analysis.
The aim of customer value analysis is to determine the benefits that target customers value and
how customers rate the relative value of various competitor„s offers.
Close or Distant Competitors: Most companies will compete with close competitors- those that
resemble them most- rather than distant competitors. Thus, Nike competes more against Adidas
than against Timberland. And target competes with WalMart rather than against Neiman Marcus
or Nordstrom.
“Good” or “Bad” Competitors.A company really needs and benefits from competitors. The
existence of competitors results in several strategic benefits. Competitors may help increase total
demand. They may share the costs of market and product development and help to legitimize
new technologies. They may serve less-attaractive segments or lead to more product
differentiation. Finally, they lower the antitrust risk and improve bargaining power versus labor
or regulators. Competitive Strategies: Having identified and evaluated its major competitors, the
company now must design broad competitive marketing strategies by which it can gain
competitive advantage through superior customer value. But what broad marketing strategies
might the company use? Which ones are best for a particular company, or for the company„s
different divisions and products? Basic competitive Strategies Almost three decades ago
,Michael Porter suggested four basic competitive positioning strategies that companies can
follow- three winning strategies and one losing one. The three winning strategies include:
Overall cost leadership: Here the company works hard to achieve the lowest production

7. and distribution costs. Low costs let it price lower than its competitors and win a large market
share. Texas Instruments, Dell, and Wal-Mart are leading practitioners of this strategy.
Differentiation: Here the company concentrates on creating a highly diffentiated product line
and marketing program so that it comes across as the class leader in the industry. Most customers
would prefer to own this brand if its price is not too high. IBM and Caterpillar follow this
strategy in information technology and services and heavy construction equipment, respectively.
Focus: Here the company focuses its effort serving a few market segments well rather than
going after the whole market. A useful tool for assessing competitor strengths and weaknesses is
customer value analysis. The aim of customer value analysis is to determine the benefits that
target customers value and how customers rate the relative value of various competitor„s offers.
SWOT Analysis is a strategic planning method used to evaluate the Strengths, Weaknesses,
Opportunities, and Threats involved in a project or in a business venture. It involves specifying
the objective of the business venture or project and identifying the internal and external factors
that are favorable and unfavorable to achieving that objective. SWOT Analysis has done during
the preparation of this project. It helps to analyses and evaluate the company„s
strength/weaknesses and opportunity and threats. Company„s strength and weakness helps to
understand their market strategies which they apply in the marketplace in order to attract new
customers as well as capturing the insight of existing customers also. Opportunity and threats
determines the company„s new upliftment and what are the barriers comes in front of the
company which creates difficulties to enhance the market growth and increase in market share.
A SWOT Analysis is designed to identify the environment in which an organization is operating.
Doing so aids in the development of communication strategies. For the purpose of a swot
analysis, internal factors are those things over which and organization has some measure of
control. External factors are those things over which an organization as no control. Strengths
(positive internal factors): what do we see as our organization‟s present strengths, especially as
they relate to the issues we presently confronting? Weaknesses (negative internal factors): what
are our organization„s present weaknesses, especially as they relate to our competitors?
Remember that a competitor, in this context, does not necessarily mean a rival company,
product, service or point of view. It could be anything that competes for the attention of the
publics being targeted. Opportunities (positive external factors): what potential opportunities
exist in the future especially as they relate to the issues we are presently confronting? Threats

8. (negative external factors): what are the threats we face in the future and, therefore, must be
prepared to fact? Remember that a threat, in this context, does not necessarily mean a direct
threat. It can be anything that can prevent and organization from reaching its goals.
Company overview:
of rs.150000. it achieved its first milestone after its first investment in technology. Karvy
became a known name during the year 1985-86 when it Karvy was established as karvy and
company by five chartered accountants during the year 1979-80, and then its work was confined
to audit and taxation only. Later on it diversified into financial and accounting services during
the year 1981-82 with a capital forayed into capital market as registrar.
Evolution of KARVY:

9. It is well said that success is a journey not a destination and we can see it being proved
by karvy. Under this section we will see that how this ―karvy and company‖ of 1980 became
―karvy‖ of 2008. Karvy blossomed with the setting up of its first branch at Mumbai during the
year 1987-88. The turning point came in the year 1989 when it decided to enter into one of the
not only emerging rather potential field too i.e; stock broking. It added the feather of stock
broking into its cap. At the same time it became the member of Hyderabad Stock Exchange
through associate firm karvy securities ltd and then karvy never looked back……..it went on
adding services one after another, it entered into retail stock broking in the year 1990. Karvy
investor service centers were set up in the year 1992. Karvy which already enjoyed a wide
network through its investor service centers, entered into financial product distribution services
in the year 1993. One year more and karvy was now dealing into mutual fund services too in the
year 1994 but it didn„t stopped there, it stepped into corporate finance and investment banking in
the year 1995. Karvy„s strategy has always been being the first entrant in the market. Karvy
again hit the limelight by becoming the first registrar in the country to be awarded ISO 9002 in
the year 1997. Then it stepped into the other most happening sector i.e; IT enabled services by
establishing its own BPO units and at a gap of just 1 year it took the path of e-Business
through its website www.karvy.com . Then it entered into insurance services in the year 2001
with the launch of its retail arm ―karvy- the finapolis: your personal finance advisor‖.
Then in the year 2002 it launched its PCG(Private Client Group) which looks after its High
Networth Individuals .and maintain their portfolio and provides them with other financial
services. In the year 2003, it commenced secondary debt and WDM trading. It was a decade
which saw many Indian companies going global…..so why the largest financial service provider
of India should lag behind? Hence, karvy launched ―karvy global services limited‖ after
entering into a joint venture with Computershare, Australia in the year 2004.the year 2004 also
saw karvy entering into commodities marketing through karvy comtrade. Year 2005 saw karvy
establishing a separate branch for its insurance services under the head ― karvy insurance
broking ltd‖ and in the same year, after being impressed with the rapid growth of karvy stock
broking limited, PCG group of Hong Kong acquired 25% stake at KSBL. In the year 2006, karvy
entered into one of the hottest sector of present time i.e real estate through Karvy realty&
services (India) ltd. hence , we can see now karvy being established as the lagest financial
service provider of the country.

10. CONTENTS Page no:
1. Introduction………………………………………. 1
2. Objective…………………………………………. 5
3. Company profile…………………………………. 7
4. Company background…………………………… 9
5. Achievement……………………………………… 20
6. Review of literature………............................. … .. 21
7. Methodology……………………………………... 27
8. Data projection…………………………………… 28
9. Functioning of the stock market…………………. 31
10. Stock Market and Economic Growth……………. 32
11. Indian Stock Market………………...……………. 34
12. Bombay Stock Exchange………………………… 37
13. National Stock Exchange………………………… 48
14. Market Position…………………………………... 55
15. Analysis…………………………………………... 61
16. Finding…………………………………………… 65
17. Suggestions………………………………………. 67
18. Bibliography……………………………………... 69
:

12. Stock Broking Services:
terminals providing retail stock broking facilities.
Our services have increasingly offered customer oriented convenience, which we provide to a
spectrum of investors, high-networth or otherwise, with equal dedication and It is an
undisputed fact that the stock market is unpredictable and yet enjoys a high success rate as
a wealth management and wealth accumulation option. The difference between unpredictability
and a safety anchor in the market is provided by in-depth knowledge of market functioning and
changing trends, planning with foresight and choosin one’s options with care. This is
what we provide in our Stock Broking services. We offer services that are beyond just a medium
for buying and selling stocks and shares. Instead we provide services which are multi
dimensional and multi-focused in their scope. There are several advantages in utilizing our
Stock Broking services, which are the reasons why it is one of the best in the country. We
offer trading on a vast platform ; National Stock Exchange and Bombay Stock Exchange.
More importantly, we make trading safe to the maximum possible extent, by accounting
for several risk factors and planning accordingly. We are assisted in this task by our in-depth
research, constant feedback and sound advisory facilities. Our highly skilled research team,
comprising of technical analysts as well as fundamental specialists, secure result-oriented
information on market trends, market analysis and market predictions. This crucial information is
given as a constant feedback to our customers, through daily reports delivered thrice daily ; The
Pre-session Report, where market scenario for the day is predicted, The Mid-session Report,
timed to arrive during lunch break , where the market forecast for the rest of the day is given and
The Post-session Report, the final report for the day, where the market and the report itself
is reviewed. To add to this repository of information, we publish a monthly magazine
“Karvy ; The Finapolis”, which analyzes the latest stock market trends and takes a
close look at the various investment options, and products available in the market, while a
weekly report, called “ Karvy Bazaar Baatein”, keeps you more informed on the
immediate trends in the stock market. In addition, our specific industry reports give
comprehensive information on various industries. Besides this, we also offer special portfolio
analysis packages that provide daily technical advice on scrips for successful portfolio

13. management and provide customized advisory services to help you make the right
financial moves that are specifically suited to your portfolio.
Our Stock Broking services are widely networked across India, with the number of out trading
competence.But true to our spirit, this success is not our final destination, but just a platform to
launch further enhanced quality services to provide you the latest in convenient, customer-
friendly stock management.Over the years we have ensured that the trust of our customers is
our biggest returns. Factors such as our success in the Electronic custody business has helped
build on our tradition of trust even more. Consequentially our retail client base expanded very
fast.To empower the investor further we have made serious efforts to ensure that our research
calls are disseminated systematically to all our stock broking clients through various delivery
channels like email, chat, SMS, phone calls etc. Our foray into commodities broking has been
path breaking and we are in the process of converting existing traders in commodities into the
more organized mainstream of trading in commodity futures, both as a trading and risk
hedging mechanism. In the future, our focus will be on the emerging businesses and to meet
this objective, we have enhanced out manpower and revitalized our knowledge base with
enhances focus on Futures and Options as well as the commodities business.
INTRODUCTION
. Spectrum of services offered by Karvy: Karvy being the top registrar and
transfer agent, functions as registrar in most of the issues in the country.
Talking about the mutual fund services offered by Karvy, we can get the products
of 33 AMCs over here. it deals in both closed ended funds as well as open ended
too. Now one must be thinking why to get the mutual funds from Karvy instead of
getting it directly from AMCs???we have great reasons for it: the first one being ;
if we avail the services of Karvy then we can get the information about all the
AMCs and their products at a single place along with expert recommendations
whereas at an AMC we can get information about the products of that specific
AMC only. And the second being wide network of Karvy….nowadays we can find

14. Karvy offices at remote areas too Along with these, Karvy is very well handling
the role of depository participant. Being registered with both the depositories i.e.;
NSDL (national securities depository ltd) and CDSL (central depository services
ltd), Karvy can have access to both. Its wide network also facilitates it in
distribution of retail financial product Karvy believes in being updated always. So
it is always ready to use latest technologies so that its clients always be in touch
with the latest happenings along with Karvy. It offers e-business through internet
through its website: www.karvy.com . Other than it, it also provides its various
services through SMSes. Karvy„s services are not limited to its investors only
rather its offerings are for its corporate clients and distributors too. it is very
well aware of the fact that in this era of neck to neck competition, we cant ignore
any of the aspects of our business….so there„s a offering for
everybody…everyone„s welcome at Karvy.Along with these, Karvy is very well
handling the role of depository participant. Being registered with both the
depositories i.e.; NSDL (national securities depository ltd) and CDSL (central
depository services ltd), Karvy can have access to both. Its wide network also
facilitates it in distribution of retail financial products. Karvy believes in being
updated always. So it is always ready to use latest technologies so that its clients
always be in touch with the latest happenings along with Karvy. It offers e-
business through internet through its website: www.karvy.com . Other than it, it
also provides its various services through SMSes. Karvy„s services are not
limited to its investors only rather its offerings are for its corporate clients
and distributors too. it is very well aware of the fact that in this era of neck to neck
competition, we cant ignore any of the aspects of our business….so there„s a
offering for everybody…everyone„s welcome at Karvy.Why should investors
choose for Karvy? Excellence is next to nothing….and here at Karvy

15. everybody tries their best to offer excellent services to its clientele through
its offerings maintaining the Karvy culture which includes:
1. Controlled and low cost service culture: Karvy is there to serve its
client at the minimum possible cost. it controls cost by its various cost- cutting
techniques and minimization of avoidable costs.
2. Large volume processing capability: being the largest financial service
provider in the country, it has the unique distinction of operating its activities on a
large scale which benefits all the parties cordially.
3. Adherence to strict time schedule: Karvy knows that time is money and tries it
best to finish the task within the stipulated time schedule.
4. Expertise in coordinating multi-location responses: Karvy has got a wide
network and hence one can find its branches at most of the places in India.
Thus it enjoys its presence everywhere and coordinates among itself in
solving the queries and in responding to any situation.
5.Expertise in managing independent entities such as banks, post-office etc.:
the work culture of Karvy and the ethics followed inside Karvy makes its
workforce compatible with everybody, so the Karvy people establishes good
coordination with independent entities too.

16. History of the Indian Stock Market - The Origin
One of the oldest stock markets in Asia, the Indian Stock Markets has a
200 years old history.
Year 1800 : East India Company was the dominant institution and by end of
the century, business in its loan securities gained full momentum. Year 1830
: Business on corporate stocks and shares in Bank and Cotton presses started
in Bombay. Trading list by the end of 1839 got broader Year 1840 :
Recognition from banks and merchants to about half a dozen brokers Year
1850 : Rapid development of commercial enterprise saw brokerage business
attracting more people into the business Year 1860 : The number of brokers
increased to 60 Year 1860-61 : The American Civil War broke out which
caused a stoppage of cotton supply from United States of America; marking
the beginning of the "Share Mania" in India Year 1862-63 : The number of
brokers increased to about 200 to 250 Year 1865 : A disastrous slump began
at the end of the American Civil War (as an example, Bank of Bombay Share
which had touched Rs. 2850 could only be sold at Rs. 87)
Pre-Independence Scenario - Establishment of Different Stock Exchanges
Year 1874 : With the rapidly developing share trading business, brokers
used to gather at astreet (now well known as "Dalal Street") for the purpose
of transacting business. Year 1875 : "The Native Share and Stock Brokers'
Association" (also known as "The Bombay Stock Exchange") was established
in Bombay Year 1880 : Development of cotton mills industry and set up of

17. many others Year 1894 : Establishment of "The Ahmedabad Share and
Stock Brokers' Association"
6. Pooling of group resources: Karvy group consists of eight subsidiaries, so it
can easily pool up its resources for accomplishment of its goals, whenever
needed. The groups can help each other whenever there are peaks and lows, and
even in the case when they have huge targets just as we saw few years back, Tata
group pooling its resources to acquire Corus.

18. 4- Objective:
Share in the market offer a high capital appreciation but the movement of the share price is
always like a wave and tide motion of the sea. Volatility in the stock return is an integral part of
stock market with the alternating bull and bear phases. In the bullish market, the share prices soar
high and in the bearish market share prices fall down and these ups and downs determine the
return and volatility of the stock market. Volatility is a symptom of a highly liquid stock market.
Pricing of securities depends on volatility of each asset. It has an impact on business investment
spending and economic growth through a number of channels. Changes in local or global
economic and political environment influence the share price movements and show the state of
stock market to the general public. The issues of return and volatility have become increasingly
important in recent times to the Indian investors, regulators, brokers, policy makers, dealers and
researchers with the increase in the FIIs investment. Hence an analysis has been made to know
the volatility trend in the Indian stock market and the reasons for the bear and bull trend in the
market. Nifty and Sensex are taken as representative of Indian markets.
This project gave me opportunity to have an idea about volatility in stock market. This gave me
idea about and fundamental analysis in stock market and how trading is being done in stock
market.
The objectives of the project can be mentioned as below:
 To study volatility in Indian stock market while taking SENSEX of Bombay stock
exchange as a source of secondary data which broadly represent Indian stock market
along with NIFTY of National Stock Exchange.
 Build understanding of central ideas of stock market.
 Develop familiarity with the analysis of stock market.
 Furnish institutional material relevant for understanding the environment in which trading
decisions are taken.

19.  Understanding of Bull Market and Bear Market.
This project will be helpful to know volatility in Indian Stock Market and reasons for such high
volatility and would be able to take decisions for investment in volatile stock market