Summer Internship Project Report

On

“ STOCK MARKET AND TRADING ’’

BY
KAJAL NAGRALE

Under the guidance of

Submitted to
"Savitribai Phule Pune University"

In partial fulfilment of the requirement for the

award of the degree of

Master of Business Administration (MBA) 2022-23

Through
Surya Datta Education Foundation’s

Surya Datta Institute of Management & Mass

Communication (SIMMC)
Pune- 411021

Company certificate
Institute certificate
 Declaration

I solemnly declare that the project report “A case Study on Demat account at MBA HUB
pvt.ltd.” is based on my own work carried out during the course of our study under the
supervision of "Dr.Khushali Oza ."

I assert the statements made and conclusions drawn are an outcome of my research
work. I further certify that

I. The work contained in the report is original and has been done by me under the
general supervision of my supervisor.

II. The work has not been submitted to any other Institution for any other
degree/diploma/certificate in this university or any other University of India or
abroad.

III. I have followed the guidelines provided by the university in writing the report.

IV. Whenever I have used materials (data, theoretical analysis, and text) from other
sources, I have given due credit to them in the text of the report and giving their
details in the references.

KAJAL RASHTRAPAL
NAGRALE

SIMMC DIV-B

Roll No - 20210101097
 Acknowledgement
I wish to extend my sincere gratitude to Mba hub pvt ltd. for providing me the golden
opportunity to work under his expert advice and guidance and gain knowledge as well as
experience.
I am very thankful to Project Guide Dr Khushali Oza Associate professor, Surya Datta
Institute of Management and Mass Communication (SIMMC), Pune – 411021 for
guidance given and cooperation extended for carrying out the project.
Furthermore, I am also thankful to all the respondents, family members and friends who
have helped me to conclude the contents of the project in decent and presentable manner.
Chapter No. Chapter Title Page No.

Executive Summary

1 Introduction

2 Literature Review

3 Company Profile

4 Tasks Carried out & Research methodology

5 Data analysis or key findings

6 Conclusions

7 Recommendations & suggestions contribution to

company

8 Limitations of the study & scope for further work

9 Annexure

INDEX
 EXECUTIVE SUMMARY

The commencement of E-Trading and stock market has transformed the

capital market in india. With the help of stock and trading account, buying
and selling of share has become a much faster and even process than
trading with the assistance of a physical broker
It provide for the assimilation of bank , broker,stock exchange and
depository participats. This helps to get rid of the painstaking procedure of
invesring in stock exchange .
Today, if one wants to invest in stock market, he has to contact a broker on
phone or meet him personally to place order.
A broker generally gives such importance and additional service only to high
get worth customers. But the introduction of internet trading ,even a
common or a small investor gets an opportunity to avail the service at an
affordable price which is must lesser than what is charged by a physical
broker over the phone
Online trading has given customer a real time access to account information,
stock quotes elaborated market research and interactive trading.
The prerequisites of internet trading are a computer, a modern and a
telephone connection, registration with broker , a bank account and
depository account.
The introduction of depository service is considered as the beginning of the
trading of stock @click. This means that you can arrange delivery of scrips
sold anytime, anywhere to anyone by click of a mouse.

Organisation information:
I am doing my summer internship project (work) a mba hub pvt.ltd.
This is located in rachi jharkhend city mainly works is related to angel one and
icici demat account trading related work. Anwar Ashrafi sir who is the owner of
the firm.
Department under work:
I am doing my work or summer internship project at the Mba hub
pvt.ltd in the stock market and trading of company. In this department i am
work as finance interne (WFH)
 CHAPTER 1- Introduction

Background & Present scenario

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,
and settlement process.

As of November 2021, the BSE had 5,565 listed firms

whereas the rival NSE had 1,920 as of Mar. 31, 2021.
Almost all the significant firms of India are listed on both the exchanges. The
BSE is the older stock market but the NSE is the largest stock market, in terms
of volume. 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 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 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.

Brief conceptual background

 Stock markets are venues where buyers and sellers meet to exchange
equity shares of public corporations.
 Stock markets are components of a free-market economy because they
enable democratized access to investor trading and exchange of capital.

 Stock markets create efficient price discovery and efficient dealing.

 The U.S. stock market is regulated by the Securities and Exchange

Commission (SEC) and local regulatory bodies.
 The financial market in India is growing rapidly and is expected to
emerge as one of the leaders in the international arena very soon. This
boom in financial markets is stimulating the growth of the Indian share
market encouraging the investors to invest in the share market.

The history of the share market of India dates back to 1875. The name of
the first share trading association in India was “Native Share and Stock
Broker's Association” which later came to be known as Bombay Stock
Exchange (BSE). This association began with 318 members. Today India
can boast of 24 share markets in the various parts of the country, and a
number of financial intermediaries that include banks, Non Banking
Financial Corporations, Insurance companies, Mutual Funds, etc.

In the 1970s the Foreign Exchange Regulation Act (FERA) was introduced
that encouraged multinational companies to divest their foreign equity; this
phenomenon gave a fresh impetus to retail investing.

The Securities and Exchange Board of India (SEBI), which was set up in
1988 as an administrative arrangement, was given statutory powers after the
enactment of the SEBI Act in 1992. The main function of SEBI was to
protect investor interests in securities, to promote the development of
securities markets and to regulate the securities markets.

Highlight of the study

During the summer project 22nd August ,2022 till 18th September at Mba hub
pvt.ltd stock market using Stock market and Trading. I have very well
realized the fact that practical learning is far better than classroom teaching.
With this project I have learned for the Stock Market and trading at Mba
hub.

Objective Of Study

 Stock markets are venues where buyers and sellers meet to exchange equity shares of
public corporations. Stock markets are vital components of a free-market economy
because they enable democratized access to trading and exchange of capital for
investors of all kinds.

 A broker is an individual or a firm that executes 'buy' and 'sell' orders for an investor
for a fee or commission. Besides executive client orders, some broker also provide
additional services such as research, intelligence, investment plans, margin funding
and such other value-added services
 This project will aim to give detailed information on each and every financial service
offered by a brokerage business to its clients. This project will include a comparative
analysis to help us understand how a brokerage business operates in the stock market
and to assist consumers in investing / trading in stock markets.

 To know investor’s perception regarding investment in stock market & know

investor’s behaviour towards market trends on his investment

Need for study

The stock market is a component of a free-market economy. It allows

companies to raise money by offering stock shares and corporate bonds and
allows investors to participate in the financial achievements of the
companies, make profits through capital gains, and earn income through
dividends.

Stockbrokers act as intermediaries between the stock exchanges and the

investors by buying and selling stocks and portfolio managers are
professionals who invest portfolios, or collections of securities, for clients.
Investment bankers represent companies in various capacities, such as private
companies that want to go public via an IPO or companies that are involved
in pending mergers and acquisitions.
 Chapter 2 - Literature Review

stock
As the activities on a stock market tend to be specialized and not understood
by common people, this chapter will give some basic definitions and review
stock market history, participants, operations and importance, so as to serve
as a basis for understanding how stock market can help promote investment
and trade in a monetary zone. Besides, review of other studies will be done
in this chapter to give various dimensions of stock market in an economy.

1) Definition
Although common, the term stock market is somehow abstract for the
mechanism that enables the trading of company stocks. It is also used to
describe the totality of all stocks, especially within a country, for example in
the phrase “the stock market was up today”, or in the term “stock market
bubble”.
Stock market is different from a stock exchange, which is an entity (a
corporation or mutual organization) in the business of bringing buyers and
sellers of stock together. For example, the stock market in the United States
includes the trading of stocks listed on the NYSE, NASDAQ and Amex and
also on the OTCBB and pink sheets
2) History
In 12th century France, the courratier de change was concerned with
managing and regulating the debts of agricultural communities on behalf of
the banks. Because these men also traded with debts, they could be called
the first brokers.
In early 13th century Bruges commodity traders gathered inside the house
of a man called Van der Beurse, and in 1309 they institutionalized this, but
Until then informal meeting and become the Brugse Beurse. The idea quickly
spread around Flanders and neighboring counties and Beurzen and soon
opened in Ghent and Amsterdam.
In the middle of the 13th century, Venetian bankers began to trade in
government securities. In 1351, the Venetian government outlawed
spreading rumors intended to lower the price of government funds. Banker
in Pisa, Verona, Genoa and Florence also began trading in government
securities during the 14th century.
This was only possible because these were independent city states not
ruled by a duke but a council of influential citizens.
The Dutch later started joint stock companies, which let shareholders invest
in business ventures and get a share of their profits or losses. In 1602, the
Dutch East India Company issued the first shares on the Amsterdam stock
exchange. It was the first company to issue stocks and bonds.
The first stock exchange to trade continuously was the Amsterdam Beurs, in
the early 17th century. The Dutch pioneered short selling, option trading,
3) Importance of stock markets

Just as it is important that networks of transportation, electricity and

telecommunications function properly, so is it essential that payments can
be
transacted, capital can be saved and channeled to the most profitable
investment projects and that both households and firms get help in
handling
financial uncertainty and risk as well as possibilities of spreading
consumption over time. Financial markets constitute an important part of
the
total infrastructure for every society that has passed the stage of largely
domestic economies. Stock market which is part of the financial markets,
perform the following functions in an economy
I. Raising Capital for Businesses: The stock exchange provides
companies with the facility to raise capital for expansion through
selling shares to the investing public
II. Mobilizing Savings for Investment: When people draw their
savings and invest in shares, it leads to a more rational allocation
of resources because funds, which could have been consumed or
kept in idle deposits with banks, are mobilized and redirected to
promote business activity with the benefits for several economic
sectors such as agriculture, commerce and industry, resulting in a
stronger economic growth and higher productivity levels.
III. Facilitate Company Growth: Companies view acquisitions as
opportunity to expand product lines, increase distribution channels,
hedge against volatility, increase its market share or acquire other
necessary business assets. A takeover bid or merger agreement
through the stock market is the simplest and most common way to
company growing by acquisition or fusion.
IV. Redistribution of Wealth: By giving a wide spectrum of people a
chance to buy shares and therefore become part owners
(shareholders) of profitable enterprises, the stock market helps to
reduce large income inequalities. Both casual and professional
stock investors through stock price rise and dividends get a chance
to share in the profits of promising business that were set up by
other people.
V. Corporate Governance: By having a wide and varied scope of
owners, companies generally tend to improve on their management
standards and efficiency in order to satisfy the demands of these
shareholders and the more stringent rules for public corporations

4) Stock Market Development and Long-Run Growth

Is financial system important for economic growth? One line of research
argues that it is not and another line stresses the importance of financial
system in mobilizing savings, allocating capital, exerting corporate control
and easing risk management. Moreover, some theories provide a
conceptual
basis for the belief that larger, more efficient stock markets boost economic
growth. The article under review examined whether there is a strong
empirical link between stock market development and long-run growth.
The article documented theoretical disagreement which exists about the
importance of stock markets for economic growth. Mayer (1988) argues
that even large stock markets are unimportant soures of corporate finance.
Stiglitz (1985, 1994) says stock market liquidity will not enhance incentives
for acquiring information about firms or exerting corporate governance.
Moreover, Devereux and Smith (1994) emphasis that greater risk sharing
through internationally integrated stock markets can actually reduce saving
rates and slow economic growth. Finally, the analyses of Shleifer and
Summers (1988) and Morck, Shleifer, and Vishny (1990a, 1990b) suggest
that stock market development can hurt economic growth by easing
counterproductive corporate takeovers.
The article used cross country regressions to examine the link between
stock
market development and economic growth. To conduct this investigation, it
needed measures of stock market development. Theory does not provide a
unique concept or measure of stock market development, but it does
suggest
that stock market size, liquidity and integration with world capital markets
may affect economic growth. Consequently, the study used a conglomerate
index of overall stock market development constructed by Demirgus-Kunt
and Levine (1996).

INDUSTRY PROFILE

Stock market:

Indian stock Markets are one of the oldest in Asia. Its history dates back to nearly 200 years
ago. The earliest record of security dealings in India are manager and abscure. The East India
Company was the dominant institution in those days and business in its loan securities used to
be transacted towards the eighteenth century.

By 1830’s business on corporate stocks and shares in Bank and Cotton presses took place in
Bombay. Though the trading list was broader in 1839, there were only half a dozen brokers
recognized by banks and merchants during 1840 and 1850.

The 1850’s witnessed a rapid development of commercial enterprise and brokerage business
attracted many men into the field and by 1860 the number of brokers increased into 60.
In 1860-61 the American civil war broke out and cotton supply from United States of erope
was stopped; thus, the share mania in India begun. The number of brokers increased to about
200 to 250. However, at the end of the American civil war, in 1865 a destroys slup began

At the end of the American civil war, the brokers who thrived out of civil war in 1874, found a
place in a street (now appropriately called as dalal street) where they would conveniently
assemble and transact business. In 1887 they formally established in Bombay, the “native
share and stock brokers’ association” (which is alternatively know as the stock exchange ) in
1895, the stock exchange acquired a premise in the same street and it was inaugurated in
1899. Thus, the stock exchange at Bombay was consolidated.)

Stock Market is one of the most vibrant sectors in the financial system, marking an important
contribution to economic development. Stock Market is a place where buyers and sellers of
securities can enter into transactions to purchase and sell shares, bonds, debentures etc. In
other words stock market is platform for trading various securities. Further, it performs an
important role of enabling corporate, entrepreneurs to raise resources for their companies and
business through public issue. Today long term investors are interested to invest in stock
market rather than invest anywhere.

In India there are two exchanges

1) The National Stock Exchange of India (NSE) was established in 1992 as the first electronic
exchange in country and it is the leading stock exchange of India. National stock exchange has
a total market capitalization of more than US$2.27 trillion and it is the world’s 11th largest
stock exchange as of April 2018. The National Stock Exchange of India (NSE) was
established in 1992 as the first electronic exchange in country and it is the leading stock
exchange of India. National stock exchange has a total market capitalization of more than
US$2.27 trillion and it is the world’s 11th largest stock exchange as of April 2018. The 50
largest Indian firms listed on the National Stock Exchange make up the benchmark NIFTY 50
index, which measures the performance of the Indian stock market. It is one of India's two
primary stock indexes, along with the BSE SENSEX.NSE Indices, a fully owned subsidiary of
the NSE Strategic Investment Corporation Limited and formerly known as India Index
Services & Products Limited, is the owner and manager of the Nifty 50. Up until 2013, NSE
Indexes and Standard & Poor's had a marketing and licence arrangement for co-branding
equity indices. The Nifty 50 index, one of the numerous stock indexes of Nifty, was
introduced on April 22, 1996.

2) The Bombay stock Exchange (BSE) is an Indian stock exchange located at Dalal street,
kala Ghoda, Mumbai. Established in 1875, the BSE is Asia’s first stock exchange, it claims to
be the world's fastest stock exchange, with a median trade speed of 6 microseconds. The BSE
is the world’s 10th largest stock exchange with an overall market capitalization of more than
$4.9 trillion on as of April 2018. Bombay Stock Exchange Sensitivity Index or BSE is a
weighted index comprising of 30 stocks and started on 1-Jan-1986. It is also known as BSE
Sensex. It is regarded as the pulse in the domestic markets in India. The BSE Sensex consists
of 30 largest and actively traded stocks, also representatives of various industries and sectors.
These companies combined account for approximately 50% of market capitalization of the
BSE
Key players in the industry
 ICICI Bank is India’s second largest bank after the public sector State Bank of
India, with total assets of Rs 3,44,658 Crore ($79 billion) as on March 31, 2007. The bank
has a network of more than 950 branches and 3,300 ATMs in India and a presence in 17
countries. The bank offers several financial products, which include fixed deposits,
insurance, mutual funds, and retail loans such as those for homes and cars.
HDFC Standard Life Insurance was the first among private sector companies to get
a licence to start operations after the industry was opened up. In the last seven years, the
company has hired more than 10,000 employees and around 85,000 financial planners or
agents.
Aviva Life Insurance is a 74:26 joint venture between Dabber and Aviva of the
UK. The company has 5,500 direct employees and around 30,000 financial planners.
Reliance Capital, controlled by Anil Ambani, offers complete financial solutions
including insurance, mutual funds and securities broking. Its brand, Reliance Money, is
emerging as one of the largest retail brokers in the country with a daily turnover of around
Rs 600 Crore. The company is building its footprint across the country.
India bulls have emerged as a strong player in the stock broking and investment
services segment. It has 414 branches in 127 cities of India.
UTI Mutual Fund, Prudential ICICI and Franklin Templeton are among the leading
mutual funds in the country that run asset management companies to invest in stocks and
other securities.

Current Demand Drivers/Demand Scenario

Rising incomes will drive demand for financial services across income brackets in
India, including in insurance and retail banking services. The number of HNWIs is
forecast to triple to over 1.2 million by 2030. By 2035, India's five largest cities will have
economies of comparable size to middle income countries today. Mumbai alone is
projected to have an economy in 2030 as big as Malaysia today. High competition and
many local players limit opportunities in the Indian retail banking sector. State-owned
banks represent 70 per cent of India's retail banking sector yet are responsible for only 43
per cent of profits.
Privatization is unlikely, but the need to improve provision of credit could see the
Indian Government approve the entry of more private banks. Fragmentation has forced a
large number of smaller private banks to compete on price and thin profit margins.
Regulations in place since 1972 require at least 40 percent of bank lending to be directed
to agriculture and 'economically weaker' sectors. India's state-owned Life Insurance
Corporation holds over 75 per cent of the life insurance market while 20 other firms
compete for the remaining share. Industry premiums, coverage and pay-out rules are
highly regulated and subject to frequent change. Indian companies have strong distribution
networks and local expertise, and foreign players may struggle to identify suitable
segments of the market to target.
There is greater capacity for private sector and foreign entrants in general
insurance, which is expected to grow between 13–19 per cent annually out to 2025,
especially since many Indian insurance firms lack expertise in product development.
Demand will also rise for financial services at the lower end of the income spectrum.
The Government of India has made financial inclusion a top priority by launching
and expanding multiple programs, creating and strengthening transparency and digital
systems, and enforcing regulatory measures to increase competition. Government efforts
to persuade cash-based vendors to embrace formal banking, including through device-
based and digital payments, will also accelerate financial services demand from micro and
SMEs.

Current Supply Scenario

Fast digital adoption from consumers and skilled IT clusters, such as those in
Hyderabad and Bengaluru, will continue driving the expansion of India's fintech industry,
which is expected to double between 2016 and 2020 to $3.2 billion. The rate of
technological change makes it difficult to forecast long term projections of the size of the
fintech market in India.
The development of India's technological and entrepreneurial ecosystem will make
it easier to expand the financial services market into regional and rural areas. While
financial inclusion has been a focus of Indian policy makers for decades’ progress is now
being seen. New technologies are now making it viable for example, the rollout of the
Aadhaar card, a national biometric identification system now covering over one billion
people, creates a comprehensive picture of prospective customers. Indian fintech
companies are driving change by specializing in targeted services along specific parts of
the value chain which were previously the domain of brick and mortar companies.
 For example, aggregators like BankBazaar.com offer a range of services such as
loans, credit cards, deposits and insurance, and receive payments from banks for assisting
in new business generation. India offers the highest expected return on investment on
fintech projects, at 29 per cent (not risk adjusted) versus a global average of 20 per cent.
India's mutual funds segment is sizable, equivalent to approximately one-tenth of
the country's GDP. Growth prospects are good, given India's high savings rate and its
well-developed equity market. The equity mutual funds market, with a boost from
demonetization, saw its assets under management cross $430 billion in 2017, double what
it was three years earlier. Further development in the mutual funds sector will be
hampered by modest demand beyond tier one cities, a lack of asset class diversity and
narrow pension coverage.
India's pension system is at a nascent stage, dealing with challenges related to
customer awareness, penetration and regulation. Pension funds under management stand
at 1.1 per cent of GDP – compared to 1.5 percent of GDP in China – and its subscriber
base of 8.7 million is a small fraction of the working population. India's regulatory
framework limits investment avenues for money raised through pensions.
However, this is changing with the Employees' Provident Fund organization
granted approval to invest a part of its assets into exchange traded funds. But the demand
for pensions is expected to rise considerably out to 2035 on the back of an increase in the
elderly population, a higher life expectancy and decrease in the prevalence of the extended
family structure. This creates a pressing need to create a robust pension system in India,
which would raise investment prospects, including for foreign companies.
Company Profile

About MBA HUB PVT.LTD

Firm Details
Firm Name: - mba hub marking and finance fundamental
company
Founder Name :animesh Kumar
Firm Founded: 2022
Firm Sector: - Private ltd» Educational
Bank Address: Ranchi Jharkhand
Phone: 7258844157
Firm Legal Status: Teaching
State: - Jharkhand. City: - Ranchi
Pin: - 834001
Website Link: https://mbahub.in/about/
Company Email: [email protected]
Firm Phone: 7371848892
Company Guide Name: - Mr.Animes kumar
Company Guide Designation: - Founder
Department: - H.R.Department
Email: - [email protected]
Location: - Ranchi
Mobile No: - 7258844157
The intership will also encompass working on different phases of promoting MBA Hub
through your creative ideas on differentsocial media. You will be involved in idea
generation, generation of leads for hiring interns through Linkedin , Public relation
handling , Creating posts for our social media handles which consolidates the marketing
technique taught to you. You will also be required to attend industry sessions/meetings
as part of the internship procedure. The internship also ensures you with complete
learning about trading and investing in stock market services include:

Stock broking institutional and Retail

Distribution of financial products
Merchant banking
Corporate advisory services
Mergers & acquisitions.
Project appraisals & debt syndication
Portfolio Management services
Capital market products
Debt placement and underwriting
Fund management
Research services

Core Competencies:
 I. Top quality research & portfolio advisory services for equities.
II. Focused research products.
III. Robust internet trading facility
IV. Commodities research & broking services
V. Web based 24 7 Backoffice software
VI. Good understanding of the sub-broker and retail customer needs
VII. Professional work culture with a personal touch
VIII. Cost-effective processes
IX. State-of-art technology
X. Online technical support & help desk
XI. Streaming quotes & real time charts for BSE/NSE [cash/derivatives]

XII. Presence in over 2500+ locations across 550 cities with ~2.6 million registered
customers.
XIII. Depository assets of Rs. 1,95,900 Crores & Distribution AUM of Rs. 16,553
Crores as on 31st December 2021.
XIV. Acquired 6.4 lakh clients in 9MFY22; 52% through online channel
XV. 57% of total trades were online trades & 61% of clients have traded online
XVI. Ramped up digital acquisition by expanding dedicated digital acquisition team.
New Digital head on-boarded- Vipul Nirwani (ex- Amazon, McKinsey)
XVII. Enhancing our client journey by building Super Fina app, Research Portal, e-
KYC journey and redesigning options flow strategy.
XVIII. 98% pan India pin-code coverage
 4 CHAPTER – TASKS CARRIED OUT

To study about Stock Market in deeply. I learn the fundamentals and

technical analysis on equity and currency market and debt market.

I also study about how work mutual fund market what is the pool tank,
NAV, fund size, fund management, and investment objective. We have also
studied about Chat pattern

How work chat pattern in stock market: - Pivot Point and RSI
I have studied the source of the customer from datebook given by the
company These customers are already shows interest for opening demat
account in company portal or search for trading in same portal. After getting
the database from company we are calling to the customer and convicted for
opening Demat account.

After getting the positive response from customer below mentioned step,we
proceed to open the Demat Account.
Enter your basic details, and click Sign Up.

Keep scanned copies (i.e., soft copies) of your documents (Aadhaar, PAN,
Cancelled Cheque, and your latest bank statement) with you for whe you are
directed to upload them.
Enter your Aadhaar details and the OTP you receive on your linked mobile
number in order to verify your identity.
That should be it. Your demat account should now be created.
Next step we are generating leads for mba hub.
On daily basis 5 Leads are mandatory as we are reach out to this customer
through college website to participate in our Finance awareness program.
Next step we are also generate leads for our free and some paid training
program and provide placement to them in our tie up companies.

RESEARCH METHODOLOGY/TASKED CARRIOD OUT

STOCK SELECTION PROCESS RESEARCH METHODOLOGY

1. STOCK SCREENING PROCESS Expect nothing less than highly rigorous due
diligence from StockAxis during each step of the investment process. We begin with
using our inhouse proprietary software systems to get a list of companies qualifying
our screeners. We conduct thorough, indepth analysis to select the best companies for
investment. Ultimately, we recommend and monitor the selected companies
continuously. Every business is different and unique; this implies that the research
carried out sho uld be suitable to the business. The following are different research
strategies applied for different businesses: Cyclical / Noncyclical Business The terms
‘cyclical’ and ‘non performancecyclical’ describe how highly correlated a company's
 operational is to economic fluctuations. Cyclical Industries and their companies have
a direct relationship to the economy, while noncyclicals repeatedly outperform the
overall business environment when economic growth slows down. Investors cannot
influence the cyc les of the economy, but we can adapt our investing practices to the
best of our knowledge. Adapting to economic changes requires an understanding of
how industries are aligned to the economy. It's important to know the fundamental
difference between cyclic al and noncyclical companies to distinguish between sectors
affected by economic changes and those that are more immune to it. Cyclical stocks
represent companies that manufacture and/or sell discretionary products and services
that consumers buy when th e economy is performing very well. People tend to avoid
purchasing these products and services when times are tough. When people stop/hold
off buying because of a reduction in purchasing power, companies’ revenues may
start to fall. This, in turn, puts pre ssure on stock prices, which also start to drop. In
the event of a long downturn, some of these companies may even go out of business.
We at a Stock Axis look for companies whose businesses are non are hence, generally
profitable cyclical/less cyclical and regardless of economic trends. These companies’
products and services are more related to non least dependent on macro--
discretionary consumption in our country. They are economic indicators and more
dependent on domestic consumption trends. They provide g reat places to invest when
the economic outlook is in downturn.
2. BUSINESS MODEL We believe a strong business model plays a very important r
ole in the overall growth of the company. Basically, the primary component of the
business model is the value proposition. This is a description of the goods or services
that a company offers and why they are attractive to customers or clients, ideally sta
ted in a way that distinguishes the product or service from its competitors. We look
for scalability in the business with visibility in its earnings over a longer duration.
They should have high entry barriers, strong leadership in the market, the product s
should have been well accepted by consumers and strong brand recognition. We look
for a business model which has been resilient through a downfall, margins are stable
or on an increasing trend and finally, we check for disruption. One bad cycle can easi
ly impact a business. Hence, the product portfolio of the company should be resilient
in a downfall during which margins are stable. Here is a list of different business
models: Manufacturer Business Model The manufacturing business model uses raw
mat erials to create a product to sell in the market. This type of business model might
also involve the fabrication of prefabricated components to make a new product, such
as automobile manufacturing. A manufacturing business can sell its products directly t
businesstoo customers (known as the consumer (B2C) model). We at StockAxis
believe that this is a high margin business which creates strong earnings visibility and
demands high valuation in the stock market. We prefer and recommend this business
model.toAnother option involves outsourcing product sales to another company
(known as the business business or B2B. This business model is not margin lucrative
and generally commands low valuations in the market. Distributor Model (Trading
Business) A distributio n company buys products directly from a manufacturing
company and resells the products directly to consumers or to a retailer. The distributor
 often acts as one of the middle points between a manufacturer and the final consumer.
Distributors are responsibl e for setting price points that will generate a profit while
also utilizing effective promotion strategies that will secure strong sales. This kind of
business model is also known as a trading business model which commands very
lowgenerally avoid recommending such business models. Retailer Model price
valuation in the m arket. We A retailing business buys products from a wholesale or
manufacturing company, then sells it directly to the public. Examples of retailers are
DMART, VMART, V2 RETAIL, TRENT, FUT URE RETAIL, RELIANCE
RETAIL and many more. Retailers might be nationwide chains, or they could be
independent shops operated by a single entity. Retailers may either have physical
outlets at different locations and/or sell online. This kind of business, w e believe, will
witness secular growth as it is related with India’s consumption. These companies
have a sustainable business model and command high valuations in the stock market.
Online Model (E E-- commerce) commerce has helped businesses establish a w ider
market presence by providing cheaper and more efficient distribution channels for
their products or services. Ecommerce, which can be conducted over computers,
tablets, or smartphones, may be thought of as a digital version of mailorder catalogue
sh available through eopping. Nearly every imaginable product and service is
commerce transactions, including books, music, plane tickets, and financial services
such as stock investing and online banking. As such, it is considered a very disruptive
technolo gy. This model is successful if the company uses sophisticated technology
for its online Ecommerce platform. At StockAxis, we assess the business model of the
company, its ability to bring visibility in the company’s margins and its sustainability.
3. RETURN RATIOS Assessing a company’s profitability is one of the key factors to
consider while making an investment decision. One must use return ratios to do this.
Return ratios indicate how efficiently a company is using its funds to generate profits.
The two key return ratios are: Return on Equity and Return on Capital Employed.
Let’s understand both these ratios. Return on Equity (ROE) The return on equity ratio
(ROE) is a profitability ratio that measures how effectively a company is able to use
its equity capital to generate profits. A high ROE indicates that a company is using its
own funds in a better way, and vice versa. However, on e must compare the ROE of a
company with other companies in the sector or industry group it belongs to.
StockAxis’ Analysis of ROE As mentioned earlier, a higher ROE is a positive
indication of effective usage of capital. StockAxis combines this metric with DuPont
analysis to further break down the ROE indicator. The DuPont analysis covers three
key ratios i.e. operating margin, asset turnover and financial leverage. This analysis
helps us pinpoint the specific reasons for a higher or lower ROE. F or instance, a
company can have a higher ROE due to its market leadership, sustainable growth,
operational efficiency, and/or optimum utilization of equity capital. A caveat here is
that one must compare companies in the same industry group since every ind ustry
has different levels of shareholders’ fund and income.
Return on Capital:- The Return on capital employed (ROCE) ratio indicates the level
of profits a company has generated by deploying the sum of equity capital and
borrowed funds, i.e. total capi tal of the company. This is, in effect, the sum of equity
 and debt on the company’s books. A higher ROCE is considered to be good.
StockAxis’ Analysis of ROCE As mentioned earlier, a higher ROCE is a positive
indication of effective usage of funds. It in dicates that the company has been able to
use its funds optimally. A company with a high ROCE could withstand challenging
situations while sustaining profitability. A caveat here is that one must compare
companies in the same industry group since every ind has different levels of funds and
income. ustry

4. OUTPERFORM The term ‘Outperform’ implies being better than other stocks/the
broad market. It implies looking for market leaders. Market Leaders A market leader
can be defined as a co mpany which has the highest market share in a given industry
for a particular product or service. The market leader often enjoys the first mover
advantage in new markets. Due to its leadership position, the stock often trades at a
higher valuation than its peers. The company has the capability and technology to
launch products that can add value to the customer. StockAxis’ Analysis of
Outperformer StockAxis looks for the market leader or the next best player in an
industry group with potential to become a leader. Market leaders have the ability to
grow on a sustained basis and offer consistently attractive returns. Our research team
identifies compa nies which have a competitive edge over their peers, such as
companies that have niche businesses, unique products, inimitable services or
business products, first mover advantage, etc. We believe that companies which are
market leaders in their respective industry group/sector, or which have the potential to
become leaders, can outperform the broad market or their peers. Market leaders can
survive and maintain business growth across different business cycles. Choosing
leaders over laggards helps us to outp erform the market, specifically when markets
are in a downtrend.
5. MANAGEMENT QUALITY Most investors tend to overlook assessing the
management of a company. Even the best of companies may be run down if the
management quality is below par. Management forms the backbone of any business.
Senior managers, starting from the CEO downwards, are instrumental in the success
of the business. They provide the vision, direction and strategies to overcome
competition while ramping up growth, which reflects in the company’s bottomline.
The management is responsible to run the company keeping the interests of the
shareholders in perspective with the ultimate aim of creating value for shareholders.
We, at StockAxis, use our market intelligence to lo ok for management with integrity,
intelligence and passion to run their businesses efficiently. Some of the factors we
consider while evaluating the management include: 1) Promoters’/ management’s
background and competence. 2) Salary of KMP (Key manageria l persons). 3) How
efficiently capital has been allocated. 4) Insider trading activity, if any. 5) Frauds/
scams, if any. 6) Related party transactions. 7) Past track record of stakeholders’ value
creation. At StockAxis, we prefer aligning our clients’ in vestments with proven
management which has won the trust and admiration of stakeholders.
6. CORPORATE GOVERNANCE The general idea of ‘corporate governance’ is
processes and practices through which businesses are operated and controlled;
corporations’. in other words, it is, ‘the governance of Corporate governance is
 therefore about rules framed and implemented by the company’s board of directors in
order to establish the values the company must abide by. There have been some recent
amendments by SEBI, which we believe are in the right direction. Some key ones are
as follows: 1) Debarring of erring auditors 2) Each member of the board of directors
should limit his directorships in companies to the maximum stipulated limit 3)
Tightening rules related to CSR (Corporate Social Responsibility) 4) Directors to
make declarations to the board on an ongoing basis regarding their independence 5)
Half yearly statement of cash flows. We at StockAxis believe that the most important
pilla rs of corporate governance are fairness, transparency and accountability. All
these factors are critical in successfully running a company.
7. GROWTH POTENTIAL The key intent of investing in equity is capital appreciation.
This is achieved by investing in ‘growth’ stocks. We at Stock Axis look for growth
stocks in trending sectors or rapidly expandin g industries, where new technologies
and services are evolving. ‘Growth’ companies usually reinvest their earnings back
into the business, rather than pay a minimal dividend to shareholders. We look for
stocks with tremendous growth potential which will tr anslate into growth in earnings
and revenues, and, in turn, higher stock valuations in future. Growth stocks usually
trade at high prices relative to their fundamentals (e.g. book value, revenue, cash flow
and dividends).

Objective Of Study

 Stock markets are venues where buyers and sellers meet to exchange equity shares of
public corporations. Stock markets are vital components of a free-market economy
because they enable democratized access to trading and exchange of capital for
investors of all kinds.

 A broker is an individual or a firm that executes 'buy' and 'sell' orders for an investor
for a fee or commission. Besides executive client orders, some broker also provide
additional services such as research, intelligence, investment plans, margin funding
and such other value-added services

 This project will aim to give detailed information on each and every financial service
offered by a brokerage business to its clients. This project will include a comparative
analysis to help us understand how a brokerage business operates in the stock market
and to assist consumers in investing / trading in stock markets.

 To know investor’s perception regarding investment in stock market & know
investor’s behaviour towards market trends on his investment

 Scope of the Study

 One of the first things you will require in order to start stock market trading is a
brokerage account. A brokerage account is created with your depository participant
(DP), such as a broker. It is also known as a Demat account. You may use your
brokerage account to purchase, hold, and sell stocks in conjunction with a trading
account, your bank account, and other financial instruments.

 Markets have changed over time to meet the diverse demands of traders and investors.
Some people want to learn about the stock market on their own and have the time to
do so. In this situation, they may be better served by a discount brokerage service,
which gives you the essential tools you need to trade stocks but doesn't provide any
other services. Others, on the other hand, might not have the time to really understand
the stock market but still want to invest in it. A full service brokerage account could
be more appropriate in this situation.

Chapter 5 : Date Analysis

Fundamental Analysis of Indian Stocks

As you can see in the above infographics, stock analysis basically deals
with financial reports and price data of a stock/company.

They can be four types of financial reports: (1) balance sheet, (2) profit

and loss account, (3) cash flow statement, and (4) quarterly reports. The
fifth (5) report is the historical price data of the stock.
To analyze a stock in a more reliable way study of only one year report
will not be enough. Hence, while analysing stocks in Excel we must use
at least 10 year reports.

In the process of stock analysis, we study the reports and price data of
stock. But what is the expected end results? The analyst expects to get
an answer for the following questions as a result of stock analysis:

Expected answers from stock analysis:

 Business is Profitable? As an investor, it is important to invest
only in those companies which are sufficiently profitable. To judge
a company’s profitability levels, the use of financial ratios is
essential.
 Financials are Healthy? There are two main aspects of
a financially healthy company. First, less reliance on loans to fund
working capital and Capex requirements. The second, generating
fast cash in-flows to meet the working capital needs. Again, the
use of financial ratios will come in handy.
 Business is Growing Fast Enough? Till a business is growing
faster, it will attract investors’ attention. No matter how good is the
business model, if it is not growing it will have less value for the
investors. Analyzing the last 10-years data can give a feel about
the probable future growth rates of a company.
 Valuations are Good? Investors will always buy stocks at
undervalued price levels. One of the most important aspects of
stock analysis is to identify if a Stock is currently undervalued or
overvalued. The use of mathematical models can give an idea of
the intrinsic value of the company.
A symbolic representation of how to analyze stocks in Excel is shown
in the above flowchart. Basically, the total process of stock analysis
will happen in four steps:

 #1. Data Sourcing: One should identify a source from where 10-
year financial reports of a company can be located. Generally, the
most reliable data is available on the individual companies’
website. Another easier option is to get these reports from
websites like economictimes, Yahoo finance, moneycontrol, etc.
 #2. Entering Data in Excel: Once the 10-year data is in hand, the
next step will be to enter them into an excel sheet. This is perhaps
the most time-consuming activity of stock analysis in excel.
 #3. Financial Ratios: In this step, the 10-year data available in
Excel will be used to calculate financial ratios. Most of the financial
ratios can be calculated using simple excel formulas. Read
More: About financial ratio analysis.
 #4. Mathematical Models: It is here that the process of stock
analysis in Excel becomes more complicated. Unlike financial
ratios which can be calculated using simple formulas,
implementation of mathematical models can only be done by
applying a combination of logic, rules, and formulas.
Data Analysis of Asian Paint And Berger
Paint Stock and their comparison

Fig: One year Data Compare

Fig: 5 Years Data Compare

 Asian Paint Vs Berger Paint

CURRENT VALUATIONS

BERGER
BERGER ASIAN PAINTS/
     
PAINTS PAINTS ASIAN
PAINTS
View
P/E (TTM) x 58.6 76.2 76.9%
Chart
View
P/BV x 14.0 20.4 68.7%
Chart
Dividend
% 0.5 0.7 84.0%  
Yield

FINANCIALS

 BERGER PAINTS    ASIAN PAINTS

EQUITY SHARE DATA

BERGE 5-Yr
BERGE ASIAN
R Char
R PAINT
    PAINTS/ t
PAINTS S
ASIAN Click to
Mar-22 Mar-22
PAINTS enlarge

R
High 872 3,588 24.3%   
s
R
Low 621 2,484 25.0%   
s
Sales per
R
share 90.2 303.4 29.7%
s
(Unadj.)
Earnings
R
per share 8.5 31.8 26.8%
s
(Unadj.)
Cash
flow per R
10.9 40.3 26.9%
share s
(Unadj.)
Dividend
s per R
3.10 19.15 16.2%
share s
(Unadj.)
 EQUITY SHARE DATA

BERG
BERG ER 5-Yr
ASIAN Cha
ER PAINT
PAINT rt
    PAINT S/
S Click
S ASIAN to
Mar-22
Mar-22 PAINT enlarg
e
S
High Rs 872 3,588 24.3%   
Low Rs 621 2,484 25.0%   
Sales per
share Rs 90.2 303.4 29.7%
(Unadj.)
Earnings per
share Rs 8.5 31.8 26.8%
(Unadj.)
Cash flow per
share Rs 10.9 40.3 26.9%
(Unadj.)
Dividends per
share Rs 3.10 19.15 16.2%
(Unadj.)
Avg Dividend
% 0.4 0.6 65.9%
yield
Book value
per share Rs 40.4 143.9 28.1%
(Unadj.)
Shares
outstanding m 971.32 959.20 101.3%   
(eoy)
Bonus /
Rights / 0 0 -   
Conversions
Price / Sales
x 8.3 10.0 82.7%   
ratio
Avg P/E ratio x 87.4 95.4 91.7%
P/CF ratio
x 68.7 75.3 91.2%
(eoy)
Price / Book
x 18.5 21.1 87.6%
Value ratio
Dividend
% 36.3 60.2 60.4%   
payout
Rs 724,87 2,912,1
Avg Mkt Cap 24.9%   
m 4 72
No. of `00
NA NA -   
employees 0
Total Rs 5,431 17,867 30.4%   
 EQUITY SHARE DATA

BERG
BERG ER 5-Yr
ASIAN Cha
ER PAINT
PAINT rt
    PAINT S/
S Click
S ASIAN to
Mar-22
Mar-22 PAINT enlarg
e
S
wages/salary m
Avg.
Rs
sales/employ 0 0 -   
Th
ee
Avg.
Rs
wages/emplo 0 0 -   
Th
yee
Avg. net
Rs
profit/employ 0 0 -   
Th
ee

INCOME DATA
Rs
Net Sales 87,618 291,013 30.1%
m
Rs
Other income 646 3,800 17.0%   
m
Rs
Total revenues 88,264 294,813 29.9%   
m
Rs
Gross profit 13,311 46,879 28.4%
m
Rs
Depreciation 2,265 8,164 27.7%   
m
Rs
Interest 507 954 53.2%   
m
Rs
Profit before tax 11,184 41,562 26.9%   
m
Rs
Minority Interest 0 0 -   
m
Rs
Prior Period Items 0 0 -   
m
Extraordinary Inc Rs
0 0 -   
(Exp) m
Rs
Tax 2,893 11,029 26.2%   
m
Rs
Profit after tax 8,291 30,532 27.2%
m
Gross profit
% 15.2 16.1 94.3%
margin
 INCOME DATA
Effective tax rate % 25.9 26.5 97.5%   
Net profit margin % 9.5 10.5 90.2%

INCOME DATA
Net Sales Rs m 87,618 291,013 30.1%
Other income Rs m 646 3,800 17.0%   
Total revenues Rs m 88,264 294,813 29.9%   
Gross profit Rs m 13,311 46,879 28.4%
Depreciation Rs m 2,265 8,164 27.7%   
Interest Rs m 507 954 53.2%   
Profit before
Rs m 11,184 41,562 26.9%   
tax
Minority
Rs m 0 0 -   
Interest
Prior Period
Rs m 0 0 -   
Items
Extraordinary
Rs m 0 0 -   
Inc (Exp)
Tax Rs m 2,893 11,029 26.2%   
Profit after tax Rs m 8,291 30,532 27.2%
Gross profit
% 15.2 16.1 94.3%
margin
Effective tax
% 25.9 26.5 97.5%   
rate
Net profit
% 9.5 10.5 90.2%
margin

BALANCE SHEET DATA

Rs
Current assets 47,815 151,523 31.6%   
m
Current Rs
35,758 75,710 47.2%   
liabilities m
Net working cap
% 13.8 26.1 52.8%
to sales
Current ratio x 1.3 2.0 66.8%
Inventory Days Days 83 51 163.5%
Debtors Days Days 4 5 90.4%
Rs
Net fixed assets 46,945 78,061 60.1%   
m
Share capital Rs 971 959 101.3%   
 BALANCE SHEET DATA
m
Rs
"Free" reserves 38,231 137,022 27.9%   
m
Rs
Net worth 39,202 137,982 28.4%   
m
Rs
Long term debt 98 445 22.1%   
m
Rs
Total assets 94,760 229,584 41.3%
m
Interest
x 23.1 44.6 51.7%   
coverage
Debt to equity
x 0 0 77.7%
ratio
Sales to assets
x 0.9 1.3 72.9%   
ratio
Return on
% 9.3 13.7 67.7%
assets
Return on equity % 21.1 22.1 95.6%
Return on
% 29.7 30.7 96.9%
capital
Exports to sales % 0.1 0.6 15.5%   

Current Rs
35,758 75,710 47.2%   
liabilities m
Net working cap
% 13.8 26.1 52.8%
to sales
Current ratio x 1.3 2.0 66.8%
Inventory Days Days 83 51 163.5%
Debtors Days Days 4 5 90.4%
Rs
Net fixed assets 46,945 78,061 60.1%   
m
Rs
Share capital 971 959 101.3%   
m
Rs
"Free" reserves 38,231 137,022 27.9%   
m
Rs
Net worth 39,202 137,982 28.4%   
m
Rs
Long term debt 98 445 22.1%   
m
Rs
Total assets 94,760 229,584 41.3%
m
Interest x 23.1 44.6 51.7%   
 coverage
Debt to equity
x 0 0 77.7%
ratio
Sales to assets
x 0.9 1.3 72.9%   
ratio
Return on
% 9.3 13.7 67.7%
assets
Return on equity % 21.1 22.1 95.6%
Return on
% 29.7 30.7 96.9%
capital
Exports to sales % 0.1 0.6 15.5%   

CASH FLOW
Rs
From Operations 5,665 9,865 57.4%
m
Rs
From Investments -5,213 -3,217 162.0%
m
From Financial Rs -
-781 4.3%
Activity m 18,076
Rs -
Net Cashflow -329 2.9%
m 11,379

SHARE HOLDING

Indian Promoters % 60.5 52.6 115.0%  

Foreign
% 14.5 0.0 -  
collaborators
Indian inst/Mut
% 14.3 27.3 52.3%  
Fund
FIIs % 11.1 18.6 60.0%  
ADR/GDR % 0.0 0.0 -  
Free float % 25.0 47.4 52.8%  
Shareholders   404,957 911,680 44.4%  
Pledged
promoter(s) % 0.0 10.6 -  
holding
NM: Not Meaningful

Source: Company Annual Reports, Regulatory Filings, Equitymaster

Compare BERGER PAINTS With:   SHALIMAR PAINTS    AKZO NOBEL    INDIGO PAINTS    KANSAI NEROLAC    

 More on Berger Paints vs Asian Paints
No comparison is complete without understanding how the stock prices have performed
over a period of time.
Here's a brief comparison:
Berger Paints vs Asian Paints Share Price Performance
Period Berger Paints Asian Paints
1-Day 0.74% 0.37%
1-Month -4.77% -4.97%
1-Year -27.30% -13.35%
3-Year CAGR 0.05% 16.93%
5-Year CAGR 16.90% 19.65%
6) CONCLUSION

This paper was motivated by the concern, present in both public policy
discussions and in the economics literature, that the stock market's deviant
behavior has real consequences for the economy. Is the stock market a
sideshow, or does it instead direct investment, perhaps erratically? We have
tried to evaluate empirically whether the stock market has a large,
independent influence on investment using both firm-level and aggregate
data. The firm-level regressions show that movements in relative share prices
are associated with fairly large and statistically significant invest- ment
changes when fundamentals are held constant, but the incremental R2 from
relative stock returns is fairly small. The cross-sectional varia- bility of
investment is sufficiently large that relative stock returns can account for
only a small part of it. We have argued that the explanatory power of relative
stock returns for investment is unlikely to be evidence that the stock market
provides new information to managers, since managers probably learn little
from the market about their own firms' idiosyncratic prospects. We have also
provided evidence that the relation between relative stock returns and
investment is not driven by the costs of external financing. The explanatory
power of relative stock returns for investment may be evidence of the market
exerting pressure on managers, although it also seems likely that the market
is picking up the effect of imperfectly measured fundamentals. By simply
including the contemporaneous growth rate in cash flow and sales we are
able to reduce the explanatory power of relative stock returns from 13 percent
to 4 percent. In any event, the 4 percent incremental R2 from the return is
small relative to what we expectedImportantly, there is nothing irrational
about the stock market in this case, it just determines which of the possible
multiple equilibria is at work. The first view seems more appealing for
several reasons. First, there is the Stock and Watson finding that the stock
market gets knocked out as a predictor of the short-run future course of the
economy once other predictors are included in regressions. One could argue
that the stock market is the first sunspot and everything else follows, but this
may be stretching it a bit. Second, in episodes such as the late 1920s and
post-October 1987 corporate managers have largely ignored this sunspot.
Overall, a fair reading of the evidence is that the stock market is a sometimes
faulty predictor of the future, which does not receive much attention and does
not influence aggregate investment. An important exception to this finding is
the evidence from the initial public offerings data, where both the stock
market index and the discount on closed-end funds help predict the pace of
new offerings.

7 :- RECOMMENDATIONS SUGGESTIONS

 A monthly analysis of the company’s market movement should be

sent to the clients of mba hub pvt.ltd

 Reduction in the cost of the brokerage that would help in increasing

the investment as well as small investors would be able to invest more
freely.

 A seminar should be arranged for the investors for giving them

information about various factors to be considered before & after
investing.

 Try to reduce the cost, so that the benefits can be passed to the
customers. Service managers at Mba hub Financial Services keep on
telling that it is difficult to reduce cost, because of services provided.
But the fact is, India being a price sensitive market, people at times go
for monetary benefits rather than for long term non-monetary benefits.

 If charges can’t be reduced because of costs involved, make the

services customized, so that the services are provided to only those
customers who are willing to pay the price for services they are
getting and let the other customers enjoy benefits without getting
services.

 Concept of margin funding should be introduced, because it is a short-

term loan facility that investors can avail if they face a short fall while
trading.
  Concentrate more on income group above 5 lakh per annum preferably
businessmen & salaried people. Because they invest only 5%. It is
better to target these groups because their earning is more and they can
invest more.

 Conduct seminars to the investors to create the awareness about Equity

shares

 Create more awareness about Mba hub Financial Services by

appointing new marketing persons.

 Mba hub Financial Services should conduct awareness program

aggressively for its Stock Brokering services.

 Since the internet and web based communication is getting popular

Mba hub Financial Services should update web site frequently and
provide information up to date .

Since investors, investment decision is based on study of different sources of

information. Mba hub Financial Services should start giving advertisement in
business newspaper and in business magazine.
 Key contributions to the Organization
 The stock market is often a sentiment indicator that can impact gross
domestic product (GDP) either negatively or positively.
 In a bull market—stock prices are rising—consumers and companies
have more wealth and confidence—leading to more spending and
higher GDP.
 In a bear market—stock prices are falling—consumers and companies
have less wealth and optimism—leading to less spending and lower
GDP.
 Mba hub Shares and Stock Brokers Ltd. provides trading in NSE, BSE
and Derivatives. It also launched online Mutual Funds & Online IPO
Bidding. Arbitrage facility is not available to customers.

 Mba hub Default Plan; Monthly Fee (Fixed) ; Equity Delivery, 0.50% ;
Equity Intraday, 0.05% (both side) ; Equity Futures, 0.05% (both side).
Shares And Stock Brokers Ltd. is the only one that does not have any
Demat transaction charges either on buying or selling.
9 :- Limitations of the study & Scope for further research / work

Limitations of the study

 Only information from the Pune City Region is gathered.

 Study is restricted to the top firms in the stock broker industry.

 Individual preferences may have an impact on the information provided

by staff members or the general public.

 Due to scheduling constraints, only 100 responders were selected for the
sample size.

 The survey was conducted using a questionnaire, and the perception-

based questions

 Due to corporate confidentiality and privacy policies, full data was not
available.

SCOPE FOR FURTHER RESEARCH / WORK

The study can be used to design a proper product, price, place &
promotional strategy for stock market.
From the present study can know the market share of different by-products
and accordingly formulated strategy to enhance it.

The most important role of the stock exchange is in ensuring a ready

platform for the sale and purchase of securities.
 10:- ANNEXURES

Bibliography

1.
https://www.researchgate.net/publication/333971213

A STUDY ON INVESTMENT IN SHARES, AND COMPARATIVE

ANALYSIS OF BROKING FIRMS:

Bhavik Umakant Swadia

2. https://indianjournals.com/ijor.aspx?
target=ijor:xijmms&volume=4&issue=2&article=006

Global financial crisis and impact on stock broking firms: A case study
of BSE

:Dr. Mishra Lalita

LINKS :

https://www.chittorgarh.com
www.zerodha.com
www.upstox.com
www.groww.com
www.angelone.com
www.kotaksecurities.com
www.5paisa.com