CHAPTER-4

1
 DATA ANALYSIS&INTERPRETATION

OUTCRY SYSTEM

The broker has to buy or sell securities for which he has received the orders. For this,
the broker or his authorized representatives goes to the stock exchange. This method is
called the open outcry system. Basically the brokers shout while buying or selling the
securities. The floor of the stock exchange is divided into a number of markets also
known as ‘post pit’ or wing based on particular securities dealt there.
In the post pit or wing, the broker using ‘open outcry’ method makes an offer or
bid price. For making the necessary bargain, he quotes his purchase or sale price, also
known as offer or bid price. The dealer, to whom the price is quoted, quotes his own
price when the quotation of the dealer suits the broker, he may loose the bargain. If he
is not satisfied with the quote price, he may turn to some other dealer. On the close of
the bargain, the dealer as well as the broker makes a brief note of the particulars of the
deal. Such notes are made on some pad and on it the number of shares, the price
agreed upon, the name of the party, what membership number etc., are noted.

DISADVANTAGES OF OUTCRY SYSTEM:

 It lacks transparency.
 The scope of manipulation, speculation and mal practice is more.
 Signal were more important in the outcry system any member who could not
interpret the buy/sell signal correctly often landed himself in disaster situation.
 In audibility was another disadvantage of the outcry system.
 Due to the above disadvantages of the outcry system the ICICI BANK has shifted
from outcry system to online trading from February 29th 1997.

2
MANUAL TRADING

Trading procedure before introduction of online trading

Trading on stock exchanges is officially done in the trading ring. In the trading ring the
space is provided for specified and non-specified sections, the members and their
authorized assistants have to wear a badge or carry with them an identity card given by
the exchange to enter the trading ring. They carry a sauda book or confirmation
memos, duly authorized by the exchange and carry a pen with them. The stock
exchanges operations are floor level are technical in nature .Non-members are not
permitted to enter in to stock market. Hence various stages have to be completed in
executing a transaction at a stock exchange .The steps involved in this method of
trading have given below:

Choice of broker:
The prospective investor who wants to buy shares or the investors, who wants to sell
shares and transact business, have to act through member brokers only. They can also
appoint their bankers for this purpose as per the present regulations.

Placement of order:
The next step is the placing order for the purchase or sale of securities with a broker.
The order is usually placed by telegram, telephone, letter, fax etc or in person. To avoid
delay, it is placed generally over the phone. The orders may take any one of the forms
such as At Best Orders, Limit Order, Immediate or Cancel Order, Limited
Discretionary Order, and Open Order, Stop Loss Order.

Execution of order or contract:

Orders are executed in the trading ring of the BSE. This works from 11:30 to 2.30 P.M
on all working days Monday to Friday, and a special one-hour session on Saturday. The
members or the authorized assistants have to wear a badge given by the exchange to
enter into the trading ring. They carry a sauda Block Book or conformation memos,

3
which are duly authorized by the exchange when the deal is struck; both broker and
jobber make a note in their sauda block books. From the sauda book, the contract notes
are drawn up and posted to the client. A contract note is written agreement between the
broker and his clients for the transaction executed.

Drawing Up and Bills:

Both sale and purchase bills are prepared along with the contract note and it is posted
on the same day or the next day. This in a purchase transaction, once the shares are
delivered to the client effects payment for the purchases and pays the stamp fees for
transfer, a bill is made out giving the total cost of purchase, including other expenses
incurred by the broker in the price itself. With this, the process ends.

DEMATERLIZATION:

Dematerialization is the process by which physical certificates of an investor are

converted to an equipment number of securities in electronic from and credited in the
investor account with his DP. In order to dematerialize the certificates, an investor has
to first open an account with a DP and then request for the Dematerialization Request
Form, which is DP and submit the same along with the share certificates. The investor
has to ensure that he marks “Submitted for Dematerialization” on the certificates
before the shares are handed over to the DP for demat. Dematerialization can only be
done to those certificates, which are already registered in your name and belong to the
list of securities admitted for Dematerialization at NSDL.
Most of the active scrip’s in the market including all the scrip’s of S&P CNX NIFTY
and BSE SENSEX have already joined NSDL. This list is steadily increasing.
Briefly, the process is as follows: after completion of transfer, the investor gets the
option to dematerialize such shares. Investor’s willing to exercise this option sends a
Demat request along with the option letter sent by the company to his DP. The
company or its R&T agent would confirm the Demat request on its receipt from the
DP to reduce risk of loss in transit.

4
Dematerialized shares do not have any distinctive or certificate numbers. These shares
are fungible-which means that 100 shares of a security are the same as any other 100
shares of the security. Odd lot shares certificates can also be dematerialized.
Dematerialization normally takes about fifteen to thirty days. To get back
dematerialized securities in the physical form, request DP for Rematerialization of the
same is made.
Rematerialization is the process of converting electronic shares in to physical shares.

Benefits of Demat:

 It reduces the risk of bad deliveries, in turn saving the cost and wastage of time
associated with follow up for rectification. This has lead to reduction in
brokerage to the extent of 0.5% by quite a few brokerage firms.
 In case of transfer of electronic shares, you save 0.5% in stamp duty. You
avoid the cost of courier / notarization.
 You can receive your bonuses and rights issues into your DA as a direct credit,
this eliminating risk of loss in transit.
 You can also expect a lower interest charge for loans taken against Demat
shares as compared to loans against physical shares.
 There is no lost in transit, thus the overheads of getting a duplicate copy in
such circumstances is reduced.
 RBI has also reduced the minimum margin to 25% for loans against
dematerialized securities as against 50% for loans against physical securities.

5
TRADING AND SETTLEMENT AT SHARE KHAN

The NSE first introduced online trading in India. The Online trading system imparted
a greater level of transparency and investors preferred exchanges that offered Online
trading because of the following factors:

 The ease of operation from the view of the both members and the investors.
 Increase in the confidence of the investors because of higher level of transparency.
 Facilities better monitoring of the market by the exchange.
 The best price achieved in buying and selling.

All these resulted in ever-increasing volumes on the exchanges offering the online
trading.

TRADING PROCEDURE AT SHARE KHAN STOCK BROCKING

Share Khan deals in buying and selling equity shares and debentures on the National
Stock Exchange (NSE), the Bombay Stock Exchange (BSE) and the Over-The-
Counter Exchange of India (OTCEI).

Share Khan is provided with a computer and required software from their
registered stock exchanges. These centers are called “Broker Work Stations”. These
computers are connected to the server at the stock exchanges through cable.
The member or broker sitting in his office can send the quotations, orders,
negotiations, deals, in-house deals, auction orders etc., through the computer. The
Central trading system (CTS) will accept these orders and send it for match. If there is
any mistake in the order, CTS will reject the orders and send respective error message
to the member concern. All these operations are in built. The main objective of CTS is
to monitor the Stock Exchanges operations.

6
 Order placed by the broker will be sent for a match and if the match is found suitable,
the transaction will be executed. Otherwise, the order will be deleted automatically
after completion of trading time. The carry forward transactions (Good Till
cancellation) are forwarded to the next day. Even if the match is not found with in the
prescribed period, the order will not cancel.

TRADING SESSION

Trading timings are from 9:55 A.M. to 3:30 P.M. on all 5 days of the trading period.
Monday to Friday is the trading period in all the stock exchanges. SEBI has stipulated that
all the stock exchanges in India must have same trading period.

BROKER WORK STATION:

At the broker workstation the BBO’s, the last traded price, the day‘s opening price,
previous day’s closing price, highest and lowest prices, the weighted average price and
total trade value will be available continuously, as the BBO for each scrip.
Other information will be available on query from the BWS. These include top gainers
/losers of the day. Trader-wise, scrip wise net position, client wise net position, top
scrip by the volume/value, market summary etc.
Brokers are also provided with information relating to the companies in the matter of
Book closure, Dividend declarations, resolutions in board meeting, information about
liquidated companies, company report etc.

7
 ORDERS:

 Orders can be done one at a time or in a batch mode.

 The submitted order will be accepted at the CTS, after validation if it finds any
invalid reason the order is return back to the BWS, with the appropriate error
message.
 If Accepted at the CTS it will be added to the local pending order book.
 The order will then be taken up for matching, if it is a buy order the system
tries to find a sell order, which fits the requirement of the buy order, when such
match is found a trade gets executed. Each trade involves two brokers and
respective traders who sent the order. Both these traders are informed of the
trade being executed at their respective BWS.
 At the BWS the trade is added to the local trade book.

Orders sent by the brokers are two types:

 Good for the day (GFD)
 Good till cancellation(GTC)

Good for the day:

This is also called as “market order”. For an order if the member selects the deal as
good for the day, the order is treated as market order. If a “best bid” founds match with
“best order” then the transaction gets executed. If the match is not found then after
trade time the order gets cancelled that day. Next day he has to place a new order.
For example if a member wants to purchase 1000 shares of satyam info @ 400 each
through Good for Day order. If the correct match is not found, order gets cancelled
automatically and new quotation has to be placed the next day.

8
Good till cancellation:

This order is forwarded to the last trading day of that settlement period. This is also
called as carry forward order like GFD; broker has to select the option of GTC for the
order. If the order finds match with in the trading settlement period, the order is
executed. If no match is found, the order is cancelled on the last day of settlement
period. This order is not carried forward to the next settlement period.
For example, if a member a place purchase order of 500 shares of SBI @ 690 per share
and selects the order as GTC and place an order. If the match is not found on that day
it will be forwarded to the next day until trading settlement period day.

SETTLEMENT OF TRANSACTIONS:

Clearing of transaction in the form of shares and cash is called settlement. Buyers will
take the delivery of shares through the depository participants like SHARE KHAN
and others.
Finally, the settlement is made by means of delivering the share certificates along with
the transfer deeds. The transferor (or the seller) duly signed transfer deed. It bears a
stamp of the selling broker. The buyer then fills up the certificates fills up the
particulars in the transfer deed. Settlement can be done in the following way.

Spot settlement: under this method, the delivery of securities and payment for them
are affected on the day of the contract itself.

Rolling settlement: Under this rolling settlement the trading is on “T+2”,basis i.e. if
Monday is trading day then Wednesday is the paying day . In case on non-delivery, the
securities will go for auction.

9
DETAILS OF PROCEDURES:

Delivery in : The members who are in pay-out position delivers share certificates in
to clearing house within the settlement period along with the delivery Chelan filled in
with the details of share certificates which has folio numbers or distinctive numbers
etc.

Delivery out: The buyer of shares who made pay in position will take delivery of
shares from the clearing house.

Pay-in: The member who is in paying position shall pay for value of shares with in the
trading settlement period (T+2).

Payout: The cheques paid in the clearinghouse will be paid to members who are in
paying position.

All disputes arising between members regarding non-deliveries, non-payments, good

and bad deliveries pertaining to the settlement will be settled by the settlement
committee of the exchange.

10
The given flow chart clearly explains the process of online trading:

Login

Buy transcation Sell transcation

The system will check your
The system will check buying dp account quantity
limits

Orders accepted Rejected orders would be orders accepted

communicated along with reasons

your order is transmitted to exchange for execution

pending buy orders on execution pending sell orders

would be displayed of your orders would be displayed
on your screen on your screen

you may edit your you may delete you may edit your you may delete your
pending order your pending order pending order pending order

flashed on your conformationcoul contract note would

screen immediately d be send to your be sent to by mail
on execution e-mail and mobile or hand delivery

11
 COMPARATIVE ANALYSIS

THE MAJOR PLAYERS IN ONLINE TRADING

 ICICI BANK
 5PAISA
 KOTAKSTREET
 INDIABULLS
 ICICIDIRECT
 HDFCSEC.

SHARE KHAN
Company Background

 Icici bank is the retail broking arm of SSKI Securities Pvt Ltd. SSKI owns 56% in
Icici bank, balance ownership is HSBC, First Caryle, and Intel Pacific
 Into broking since 80 years
 Focused on providing equity solutions to every segment
 Largest ground network of 210 Branded Share shops in 90 cities

Online Account Types

 Classis Account / Applet : Investor in equities
 Speed Trade : Trader in equities & derivatives

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PRICING FOR HNI CLIENTS

Speed Trade
 Account Opening : Rs 1000 ( Refundable against brokerage in Month + 1)
 Demat 1st Yr : Incl in Account Opening
 Initial Margin : Nil
 Min Margin Retainable : NIL
 Brokerage :
Trading 0.10% each side + All Taxes
Delivery 0.50% each side + All Taxes
(Negotiable based on volume)
 Account Access Charges
Monthly Rs 500, adjustable qtrly against brokerage of Rs 9000/- for qtr.
No access charges for gold customers (Above 1 lac brokerage p.a)

Pricing for Retail Customers

Classic / Applet
 Account Opening : Rs 750
 Demat 1st Yr : NIL
 Initial Margin : NIL
 Min Margin Retainable : NIL
 Brokerage:

Trading 0.10% each side + All Taxes

Delivery 0.50% each side + All Taxes

13
Icici bank online Trading Interfaces
The customer can choose the online trading interface that meets his requirement based
on his trading habits and preferences

CLASSIC / APPLET
The website is meant for customers who Invests in Equities

SPEEDTRADE
The speed trade is meant for customers who trade in Equities

DIAL-N-TRADE – Toll Free

The DNT is a value added services meant for all customers who
Want to transact but are not online.

DNT – TOLL FREE FERTURES

 Dedicated Toll – Free number for Order placements
 Automatic fund transfer with phone banking*
 Simple and secure IVR based system for authentication
 No wait time, on entry of Phone Id & TPIN, the call is transferred
 Trusted, professional advice of Tel-brokers who offer undiluted Icici bank
Research Inputs
 After-hours order placement facility **
 Transfer of money using phone banking is available with Citibank only
** Between 9 a.m to 9.55 am and 3.30p.m to 6 p.m

CLASSIC/WEBSITE FEATURES
 Facility to integrate choice of 4 Banks/DP/Trading Account
 Instant credit for shares sold from DP
 Automatic pick-up of shares from linked DP for pay – in
 Automatic deposit of shares into linked DP after pay-out
 4 Times leverage on Margin Trades

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 Margin Trading available for entire marker session
 Slab wise brokerage structure for delivery and margin trades, shortly
 Free calls for order placement on Toll-Free
 Trusted, Professional advice of Tele-brokers
 Facility to enter After Market Orders online & via Phone

CLASSIC/WEBSITE FEATURES
 Daily Research newsletter (Investor Eye) Via e-mail
 Access to new IPO without any paperwork
 Advanced portfolio monitoring Tools
 Integrated DP account with trading account
 Option of linking additional 4 DP accounts to trading account
 Choice of linking 4 banks to trading a/c for online payments
 Cash and Derivatives trading in a single account
 E-mail confirmations for all transactions
 Choice of electronic/Physical contracts

SPEEDTRADE EXE FEATURES

ALL THE FEATURES OF CLASSIC

*Real – time streaming quotes using 2 Marker Watches
*Trade Execution in 2-3 seconds
* Instant Order/trade confirmations in the same window
*Hot keys similar to a Broker’s Terminal
*MULTIPLE Tic-by-Tic Intra-day charts with multiple indicators
* Availability of 2 ISP & 6 Servers ensuring maximum uptime
* Customized alerts based on multiple parameters
* Cancel All/Square Off All Facility
* Window for Top Gainers, Top Losers, and Most Active updated Live

15
 5PAISE

Company Background

 Indiainfoline was founded in 1995 and was positioned as a research firm

 In 2000 e-broking was started under the brand name of 5paisa.com.

 Apart from offering online trading in stock market the company offers mutual
funds online.

 It also acts as a distributor of various financial services i.e. GOI securities,

Company Fixed Deposits, Insurance.
 Limited ground network, present in 20 cities

Online Account Types

 Investor Terminal : Investors / Students
 Trader Terminal : Day Traders / HNI’s

PRICING FOR RETAIL CLIENTS

Investor Terminal

 Account Opening : Rs 500

 Demat 1st Yr : Rs 250
 Initial Margin : Rs 2500 (Compulsory)
 Min Margin Retainable : Rs 1000
 Brokerage :
Trading 0.10% each side + ST
Delivery 0.50% each side + ST

PRICING FOR HNI CLIENTS

Trader Terminal
 Account Opening : Rs 500
 Demat 1st Yr : Rs 250

16
 Initial Margin : Rs 5000(Compulsory)
 Min Margin Retainable : Rs 1000
 Brokerage :
Trading 0.10% each side + ST
Delivery 0.50% each side + ST
(Negotiable to 0.05% each side & 0.25%)
 Account Access Charges
Monthly Rs 800, adjustable against Brokerage
Yearly Rs 8000, adjustable against brokerage

KOTAK STREET

Company Background:

Kotakstreet is the retail arm of Kotak Securities. Kotak Securities limited is a joint
venture between Kotak Mahindra Bank and Goldman Sachs.

Online Account Type

 Twin Advantage / Green Channel : 2 DP’s, Limit against shares

 Free Way: Flat Rs 999 Cover Charge p.m, 0.03% per transaction

 High Trader : 6 Times Exposure Cash & Derivatives, Auto sq off 2:55

 Cash Expressway : Spot payment, additional 0.5% charges

For Kotak FastLane / Keat Lite / Keat Desktop are trading interfaces.

Keat Desktop with advanced tools comes at a charge of Rs 500 p.m, Non refundable.

PRICING OF KOTAK

 Account Opening : Rs 500

 Demat: Rs 22.5 p.m

 Initial Margin : Rs 5000(Compulsory)

 Min Margin Retainable : Rs 1000

17
 Brokerage Slab wise: Higher the volume, lower the brokerage.

Even older customers (on 0.25% & 0.40%) have been moved to the slab wise structure
w.e.f 1/4/2004

Slab structure of Kotak

Delivery Vol p m Brokerage * Square Vol P.M. Brokerage **

< 1 lakhs 0.65% < 10 lakhs 0.10% Both Sides

1 lakhs – 5 lakhs 0.60% 10 lakhs – 25 lakhs 0.08% Both Sides

5 lakhs – 10 lakhs 0.50% 25 lakhs - 2 Cr 0.05% Both Sides

10 lakhs - 20 lakhs 0.40% 2 Cr - 5 Cr 0.04% Both Sides

20 lakhs – 60 lakhs 0.30% > 5 Cr 0.035% Both Sides

60 lakhs - 2 Cr 0.25% ---do--- 0.03% Both Sides

>2 0.20% ---- --------

* Brokerage is inclusive of All Taxes * Brokerage is inclusive of All Taxes

* DP Charges Extra

* Min Brokerage of Rs 0.05 per share * Min Brokerage of Rs 0.01 per share

Derivatives Vol off p m Brokerage

< 2 Cr 0.07% Both Sides

2 Cr - 5.5 Cr 0.05% Both Sides

5.5 Cr – 10 Cr 0.04% Both Sides

> 10 Cr 0.03% Both Sides

* Brokerage is inclusive of All Taxes.

18
 INDIABULLS

Company Background:

India Bulls is a retail financial services company present in 70 locations covering 62

cities. It offers a full range of financial services and products ranging from Equities to
Insurance. 450 + Relationship Managers who act as personal financial advisors.

Online Account Type:

 Signature Account: Plain Vanilla Account with focus on Equity Analysis. The
equity analysis is a paid service even for A/c holders.

 Power India bulls: Account with sophisticated trading tools, low commissions
and priority access to R.M.

Pricing of IB Accounts:

Signature Account Power India Bulls

* Account Opening: Rs 250 * Account Opening: Rs 750

* Demat: Rs 200 if POA is signed, * Demat: Rs.200 if POA is signed,

No AMC for this DP No AMC for this DP

* Initial Margin: NIL * Initial Margin: NIL

* Brokerage: Negotiable * Brokerage: Negotiable

PAID Research:

SCHEME FACILITY

WebBased-1-Month-500: View & Print on Website

WebBased-1-Month-6000: View & Print on Website

PrintReport-1-Month-750: View & Print on Website

+ 10 Reports Delivered

PrintReport-1-Month-9000: View & Print on Website

+ 10 Reports Delivered

19
 ICICI DIRECT

 Account Opening: Rs 750

 Schemes: For short periods Rs 750 is refundable against brokerage generated in a

qtr. These schemes are introduced 3-4 times a year.

 Demat: NIL, 1st year charges included in Account Opening Plus a facility to open
additional 4 DP’s without 1st yr AMC. Only Rs 100 as linking charges per DP

 Initial Margin : Nil

 Brokerage: ICICI’s brokerage rates are inclusive of Stamp duty (0.002%) for
trading and 0.010% for delivery while service tax (10.2%) on BROKERAGE land
turnover tax is EXTRA.

 Delivery Vol per QTR Brokerage Square Vol P.M. Brokerage

< 10 lakhs 0.75% < 50 lakhs .10% Both Sides

10 – 25 lakhs 0.70% 50 lakhs – 2 Cr .08% Both Sides

25 – 50 lakhs 0.55% 2Cr-5Cr .05% Both Sides

50 lakhs - 1 Cr 0.45% 5Cr- 10 Cr .04% Both Sides

1 Cr – 2 Cr 0.35% 10Cr -20 Cr .035% Both Sides

2 Cr – 5 Cr 0.30% > 20 Cr .03% Both Sides

> 5 Cr 0.25% ---- --------

20
 HDFC SECURITIES

Company Background:

HDFC Securities Ltd is promoted by the HDFC Bank, HDFC and Chase Capital
Partners and their associates. Pioneers in setting up Dial-a-share service with the largest
team of Tele-brokers.

Online Account Type:

 HDFC Online Trading A/c: Plain Vanilla Account with focus on 3 in 1 advantage.

Pricing of HDFC Account

 Account Opening: Rs 750

 Demat: NIL, 1st year charges included in Account Opening

 Initial Margin : Rs 5000/- for non HDFC Bank Customers (AQB)

 Brokerage:

Trading 0.15%* each side + ST

Delivery 0.50%** each side + ST

*Rs 25 Min Brokerage per transaction

**Rs 8 Min Brokerage per transaction

21
SWOT ANALYSIS

Strengths

 Strong credibility among investors because of its heritage.

 Excellent reputation among the business society.

 Capability of providing superior customer service.

 Quality research team.

 Easier access to the customer due to largest ground network of 280 branded share

shops in 120 cities.

 Abundant information about economy and companies.

 Ability to attract and retain superior and quality personnel.

 Highly sophisticated infrastructure.

 Efficient research and analysis team, which by interpreting the economy and

company’s performance accurately is enhancing the profitability of the clientele.

Weaknesses

 Limited customer appeal as the company product line does not include mutual

funds which is increasingly becoming a preferred customer investment option.

 Inadequate product awareness among the retail investors.

 Limited customer appeal as the company does not have access to the BSE online

space.

 Brand awareness is low in the financial market.

 Promotional activities conducted by the company are not at par with the other

firms.

22
Opportunities

 Hyderabad covers only 2% of investors which gives huge potential for the market

penetration.

 Bullish phase of the market attracts investing public.

 Access to the BSE online space for the retail investors creates opportunity to

increase clientele base.

 Awareness campaigns about online trading creates new market.

Threats

 Availability of Unit Linked Insurance Policies (ULIP’s) and mutual funds in the

market.

 Threat of entry is high in this industry as the manpower required is less and capital

requirement is medium.

23
SHARE PRICES OF DR.REDDY’S FOR THE MONTH OF
MARCH 2018:

DATE OPEN HIGH LOW CLOSE

1ST MARCH 2018 650.1 655 647 648.8

2nd MARCH 2018 650.1 655 647 648.8
3rd MARCH 2018 650.1 655 647 648.8
4th MARCH 2018 655..90 664 650.05 654.7
5th MARCH 2018 657 660 649.5 655.7
6th MARCH 2018 645.35 660 645.35 650.15
7th MARCH 2018 652 652 640.8 646.4
8th MARCH 2018 644 644 627.3 631.55
9th MARCH 2018 644 644 627.3 631.55
10th MARCH 2018 644 644 627.3 631.55
11th MARCH 2018 640 644 622.05 625.25
12th MARCH 2018 627 629 608.9 611.2
18th MARCH 2018 614.9 632.5 611.5 627.8
14th MARCH 2018 635 641 632.5 638.5
15th MARCH 2018 640 643.9 630.5 632.4
16th MARCH 2018 640 643.9 630.5 632.4
17th MARCH 2018 640 643.9 630.5 632.4
18th MARCH 2018 635.1 637 627 631.15
19th MARCH 2018 630 637 630 635.45
20th MARCH 2018 639 644 637.1 641.6
21st MARCH 2018 644 649.9 640.6 645.5
22nd MARCH 2018 647 654 644.05 650.25
23rd MARCH 2018 647 654 644.05 650.25
24th MARCH 2018 647 654 644.05 650.25
25th MARCH 2018 652 653 646 650.1
26th MARCH 2018 660 660 648.25 649.95
27th MARCH 2018 651 655.65 647 653.65
28th MARCH 2018 656 661 650.5 654.8
29th MARCH 2018 655.1 659.88 652 655.95
30TH MARCH 2018 655.1 659.88 652 655.95

24
 GRAPHICALLY SHOWN

665
660
655
650
645
640
635
630
625
620
615
OPEN HIGH LOW CLOSE

Interpretation :
It was noticed that the price of the Dr.Reddys stock is quoted 652 On 7th
March it decreased to a rate of 635 and in the next week it increased to 644. Again
in the last week also it increased to 655 this shows good sign to the investor as its
price increasing throughout the month and market conditions of the Dr.reddys is
good.

25
 SHARE PRICES OF INFOSYS DURING THE MONTH MARCH
2018 :

DATE OPEN HIGH LOW CLOSE

1ST MARCH 2018 1935 1949.7 1930.15 1940.05
2nd MARCH 2018 1935 1949.7 1930.15 1940.05
3rd MARCH 2018 1935 1949.7 1930.15 1940.05
4th MARCH 2018 1950 1952.7 1910 1916.45
5th MARCH 2018 1925 1949 1906 1941.45
6th MARCH 2018 1949.5 1968.9 1932.65 1938.9
7th MARCH 2018 1935 1970.1 1920 1954.5
8th MARCH 2018 1935 1977 1910 1951.05
9th MARCH 2018 1935 1977 1910 1951.05
10th MARCH 2018 1935 1977 1910 1951.05
11th MARCH 2018 1975 1994.9 1968 1980.1
12th MARCH 2018 1983.7 1998.9 1975.35 1986.75
18th MARCH 2018 1986 1997.85 1975 1982.4
14th MARCH 2018 1992 2030 1990 2020.05
15t MARCH 2018 2032 2039 2000.1 2010.35
16h MARCH 2018 2032 2039 2000.1 2010.35
17th MARCH 2018 2032 2039 2000.1 2010.35
18th MARCH 2018 2009 2026 1985 1988.9
19t MARCH 2018 1985 1985 1942.5 1956.85
20h MARCH 2018 1960 1974 1950.3 1954.1
21st MARCH 2018 1955 1965 1945.35 1956.5
22nd MARCH 2018 1958 1965 1934.35 1950.7
23rd MARCH 2018 1958 1965 1934.35 1950.7
24th MARCH 2018 1958 1965 1934.35 1950.7
25th MARCH 2018 1959 1962.8 1921.25 1935.85
26th MARCH 2018 1940.1 1948 1920 1922.45
27th MARCH 2018 1925 1948.7 1920 1936.2
28th MARCH 2018 1946 1949.8 1916 1925.9
29th MARCH 2018 1951 1975 1922 1929.2
30th MARCH 2018 1951 1975 1922 1929.2

26
 GRAPHICALLY SHOWN
2040
2020
2000
1980
1960
1940
1920
1900
1880
1860
1840
OPEN HIGH LOW CLOSE

INTERPRETATION :
It was noticed that the price of the INFOSYS stock is quoted 1935 On 7th
March it Increased to a rate of 992 and in the next week it decreased to 1955.
Again in the last week also it decreased to 1951 this shows bad sign to the investor
as its price decreasing throughout the month and market conditions of the Infosys
is not good.

27
SHARE PRICES OF RELIANCE ENERGY DURING THE
MONTH MARCH2018:

DATE OPEN HIGH LOW CLOSE

1ST MARCH 2018 545.1 549.5 538.05 541.7
2nd MARCH 2018 545.1 549.5 538.05 541.7
3rd MARCH 2018 545.1 549.5 538.05 541.7
4th MARCH 2018 546.9 554 537 541.25
5th MARCH 2018 542 553 532.9 550.55
6th MARCH 2018 550 554 530.05 533.1
7th MARCH 2018 529 542 525.25 528.1
8th MARCH 2018 526 528 518.05 520.85
9th MARCH 2018 526 528 518.05 520.85
10th MARCH 2018 526 528 518.05 520.85
11th MARCH 2018 539 539 515 516.35
12th MARCH 2018 520 522 508.1 517.05
18th MARCH 2018 518 527.4 514 520.05
14th MARCH 2018 527 531 524.3 526.6
15th MARCH 2018 529 548.95 529 531.5
16th MARCH 2018 529 548.95 529 531.5
17th MARCH 2018 529 548.95 529 531.5
18th MARCH 2018 540 544 526 530.05
19th MARCH 2018 535 541 522.9 535.65
20th MARCH 2018 539 547.7 535 538
21st MARCH 2018 539.9 564 536 560.4
22nd MARCH 2018 561.05 597.4 560.1 590.2
23rd MARCH 2018 561.05 597.4 560.1 590.2
24th MARCH 2018 561.05 597.4 560.1 590.2
25th MARCH 2018 590 604.7 587 590.75
26th MARCH 2018 592 596.6 586 589.8
27th MARCH 2018 590 592 576.05 578.2
28th MARCH 2018 578 578.95 582.3 614.1
29th MARCH 2018 585 617.45 582.3 614.1
30th MARCH 2018 585 617.45 582.3 614.1

28
 GRAPHICALLY SHOWN:

640

620
600

580

560

540
520

500

480
460
OPEN HIGH LOW CLOSE

Interpretation :
It was noticed that the price of the Reliance stock is quoted 529 On 7th
March it decreased to a rate of 527 and in the next week it increased to 539. Again
in the last week also it increased to 585 this shows good sign to the investor as its
price increasing throughout the month and market conditions of the Reliance is
good.

29
Date Open High Low Close Volume Change Change%

31/1/2018 36.1 36.15 35.96 36.06 17,168,000 0.140 -0.39%

30/1/2018 35.6 36.22 35.59 36.2 19,284,700 0.670 1.886%

29/1/2018 35.82 35.97 35.43 35.53 18,164,900 0.440 -1.22%

28/1/2018 35.9 36.19 35.87 35.97 14,333,800 0.240 0.672%

24/1/2018 35.89 36.1 35.71 35.73 18,067,700 0.230 0.648%

23/1/2018 35.5 35.82 35.38 35.5 22,461,100 - -

22/1/2018 36 36.19 35.42 35.5 18,183,400 0.510 -1.42%

21/1/2018 35.73 36.12 35.48 36.01 17,066,200 0.180 0.362%

18/1/2018 35.41 35.88 35.28 35.88 43,320,800 0.510 1.442%

17/1/2018 35.65 35.71 35.27 35.37 14,736,500 0.370 -1.04%

16/1/2018 35.81 36.12 35.48 35.74 17,997,100 0.260 -0.72%

15/1/2018 36.28 36.48 36 36 17,385,000 0.220 -0.61%

14/1/2018 35.8 36.22 35.78 36.22 17,368,600 0.400 1.117%

11/1/2018 36.03 36.14 35.75 35.82 18,175,700 0.310 -0.86%

10/1/2018 35.85 36.23 35.8 36.18 15,618,900 0.390 1.091%

9/1/2018 35.88 36.11 35.7 35.74 15,559,400 0.320 -0.89%

8/1/2018 36.03 36.21 36.01 36.06 12,023,100 0.070 -0.19%

7/1/2018 36.12 36.28 36.05 36.18 12,305,200 0.010 0.028%
4/1/2018 35.82 36.23 35.72 36.12 20,328,900 0.570 1.603%
3/1/2018 35.74 335.83 35.45 35.55 17,964,600 0.050 -0.14%
2/1/2018 35.08 35.69 35.06 35.6 17,910,800 0.380 1.079%

1/1/2018 35.24 35.39 35.15 35.22 16,206,700 0.020 0.057%

30
 Date Open High Low Close Volume Change Change%
1/1/2018 35.24 35.39 35.15 35.22 16,206,700 0.020 0.057%
8/1/2018 36.03 36.21 36.01 36.06 12,023,100 0.070 -0.19%
15/1/201 36.28 36.48 36 17,385,000 0.220 -0.61%
22/1/2018 36 36.19 35.42 35.5 18,183,400 0.510 -1.42%
29/1/2018 35.82 35.97 35.43 35.53 18,164,900 0.440 -1.22%

DATA ANALYSIS :

400

350

300

250 Series1
Series2
200
Series3
150 Series4

100

50

31
 Interpretation :
It was noticed that the price of the GE stock is quoted 35.2. On 15 th january
it increased to a rate of 36 and in the next week it increased to 36.01. Again in the
last week also it increased to 36.06 this shows good sign to the investor as its price
increasing throughout the month and market conditions of the GE is good.

NO OF INITIAL PUBLIC OFFER(IPO’S) FROM LAST FIVE YEARS

FY YEAR NO OF COMPANYS AMOUNT GATHERD
(IN CR)
2008-09 120 50000
2009-10 145 57820
2010-11 212 125760
2011-12 89 85000
2012-18 110 89000

140000

120000

100000

NO OF COMPANYS
80000

60000 AMOUNT GATHERD (IN

CR)

40000

20000

Interpretation :
It was noticed that the Many company are getting funds from public
offerings. Due to it is very is east get money from public for reputed companys

32
like Reliance,Tata,ICIC Etc. If company have reputation in market that type of
company easily getting funds from public.After privatization Public also aware of
stock market Transaction this is also one reason for growth in IPO Funds.

FII INVESTMENTS FROM LAST FIVE YEARS

FY YEAR INVESTMENT IN (RS CRORES)

2008-09 56000
2009-10 79500
2010-11 120000
2011-12 78000
2012-18 100000

INVESTMENT IN (RS CRORES)

140000

120000

100000

80000
INVESTMENT IN (RS
CRORES)
60000

40000

20000

33
 BSE TREND FROM LAST FIVE YEARS
FY YEAR HIGEST LOWEST
2009-10 12630 9659
2010-11 22360 14590
2011-12 21820 11560
2012-18 17560 12120

25000

20000

15000
HIGEST
LOWEST
10000

5000

34
 CHAPTER-5
FINDINGS AND SUGGESTIONS

35
 Findings :
It was noticed that the price of the Dr.Reddys stock is quoted 652 On 7th
March it decreased to a rate of 635 and in the next week it increased to 644. Again
in the last week also it increased to 655 this shows good sign to the investor as its
price increasing throughout the month and market conditions of the Dr.reddys is
good.
It was noticed that the price of the INFOSYS stock is quoted 1935 On 7th
March it Increased to a rate of 992 and in the next week it decreased to 1955.
Again in the last week also it decreased to 1951 this shows bad sign to the investor
as its price decreasing throughout the month and market conditions of the Infosys
is not good.

It was noticed that the price of the Reliance stock is quoted 529 On 7th
March it decreased to a rate of 527 and in the next week it increased to 539. Again
in the last week also it increased to 585 this shows good sign to the investor as its
price increasing throughout the month and market conditions of the Reliance is
good.
It was noticed that the price of the GE stock is quoted 35.2. On 15 th january
it increased to a rate of 36 and in the next week it increased to 36.01. Again in the
last week also it increased to 36.06 this shows good sign to the investor as its price
increasing throughout the month and market conditions of the GE is good.
It was noticed that the Many company are getting funds from public
offerings. Due to it is very is east get money from public for reputed companys
like Reliance,Tata,ICIC Etc. If company have reputation in market that type of
company easily getting funds from public.After privatization Public also aware of
stock market Transaction this is also one reason for growth in IPO Funds.

36
  In the trading week most of the players closed up their contracts to make
profit. As the price was low, the open interest was low and the number of
characters traded decline to 19125.

SUGGESTIONS :

After a comprehensive study of the stock market the suggestions made are as
follows.
The online trading system is easy to operate but very to maintain
and difficult to learn. The delivery and issue of shares consumes lot of time and
hence it has to be reduced to bring about quickness.
The tradable financial products should be made easy to transact
or trade in order to attract domestic and foreign investors. Stock market should
not be a vague concept for a common man and should arouse his interest and
involvement with certain of protection to the investor.
I suggest the exchange authorities take steps to educate investors about their right
and duties, try to increase investor confidence. I suggest the exchange authorities
to be vigilant to curb wide fluctuations of prices on the exchange in the prices, not
attracting the genuine investors to the greater extent towards the market. Try to
explain them how the fraud will take place so that they will be alert and they can
take necessary steps to avoid the frauds.
Genuine investors are not at all interested in the speculative gain as their
investment is based on the future profits, therefore the authorities of the exchange
should be more vigilant in imposing heavy margin to curb the speculative of
securities.
Necessary steps should be taken by the exchanges to deal with the
situation arising due to break down in online trading.

37
 SUGGESTION

 Fluctuations are more in secondary market than any other market.

 There are more speculators than investors.

 Information plays a vital role in the secondary market.

 Previously rolling settlement is T+5 days, now it changed to T+2 days and
further it will be changing to T+1 day.

 It was also observed that many broking houses offering internet trading allow
clients to use their conventional system as well just ensure that they do not
loose them and this instead of offering e-broking services they becomes
service providers.

 The number of players is increasing at a steady rate and today there are over a
dozen of brokerage houses who have opted to offer net trading to their
customers and prominent among them are SHARE KHAN, India bulls,
kotakstreet, ICICI direct and geojit.

 The Bombay stock exchange sensex zoomed past the 7700 barrier for the first
time in history to achieve new all time high of 7800 intra day trade and ended
at a historic close of 7732 points.

38
 CONCLUSION

 Things have changed for the better with the ICICI BANK going on-line coupled
with endeavor to stream line the whole trading system, things have changed
dramatically over the last 3 to 4 years. New and advanced technologies have
breached geographical and cultural barriers, and have brought the countrywide
market to doorstep.
 In the present scenario to compete with the Broker’s would require sound
infrastructure and trading as per international standards.
 The introduction of on-line trading would influence the investors resulting in an
increase in the business of the exchange. It has helped the brokers handling a vast
amount of transactions and this can be an efficient trading, delivering, settlement
system with adequate protection to investors. The trading of ICICI BANK of the
first day was Rs. 1.8 crores.
 Due to invention of online trading there has been greater benefit to the investors as
they could sell / buy shares as and when required and that to with online trading.
 The broker’s has a greater scope than compared to the earlier times because of
invention of online trading.
 The concept of business has changed today, this is a service oriented industry

hence the survival would require them to provide the best possible service to the

clients.

39
 RECOMMENDATIONS

 I recommend the exchange authorities to take steps to educate Investors about their

rights and duties. I suggest to the exchange authorities to increase the investors’

confidences.

 I recommend the exchange authorities to be vigilant to curb wide fluctuations of

prices.

 The speculative pressures are responsible for the wide changes in the price, not

attracting the genuine investors to the greater extent towards the market.

 Genuine investors are not at all interested in the speculative gain as their

investment is based on the future profits, therefore the authorities of the exchange

should be more vigilant to curb the speculation.

 Necessary steps should be taken by the exchange to deal with the situations arising

due to break down in online trading.

40
 BIBLIOGRAPHY

BOOKS:

 Investment management
-V.K.Bhalla
 Investment management
-Preethi Singh
 Security Analysis And Portfolio Management
-V.A.Avadhani
 Marketing of Financial Services
-V.A.Avadhani
 Indian Financial System
-M.Y.Khan

WEBSITES:

 www.Share Khan.com
 www.bseindia.com
 www.sebi.com
 www.moneycontrol.com
 www.economictimes.com
 www.nseindia.com

41