Summer Internship Project
On
A STUDY OF CUSTOMER BEHAVIOUR
TOWARDS EQUITY AND DERIVATIVE MARKET
(WITH REFERENCE TO STOCKIT- ASSOCIATED
WITH IIFL SECURITIES)
In Partial Fulfillment of the requirements of the degree of MBA
Year 2023
Guided By: Dr.T.S.Narayanan Submitted By:Swati Yadav
AMITY GLOBAL BUSINESS SCHOOL, INDORE
DECLARATION
I declare
(a) That the work presented for assessment in this Summer Internship Report is my own, that it has
not previously been presented for another assessment and that my debts (for words, data,
arguments &ideas) have been appropriately acknowledged.
(b) That the work conforms to the guidelines for presentation and style set out in the relevant
documentation.
Date: Swati Yadav
Batch: 2022-2024
CERTIFICATE
I hereby certify that Ms. Swati Yadav, student of Master Business Administration at Amity
Global Business School, Indore has completed the Summer Internship Project on “A STUDY OF
CUSTOMER BEHAVIOUR TOWARDS EQUITY AND DERIVATIVE MARKET WITH
REFERENCE TO STOCKIT-ASSOCIATED TO IIFL SECURITIES” under my guidance.
Dr.T. S. NARAYANAN
ACKNOWLEDGEMENT
I am thankful to Amity Business School studies to provide me an opportunity to carry out the
combined efforts of number of individuals. I consider it as my fortune and proud prerogative that
MR. YOGESH SHARMA, CO-FOUNDER OF STOCKIT, granted me permission for taking
up this project.
I am also thankful to my faculty guide, DR. T.S. NARAYANAN, who guided me throughout
this project work and providing all the possible help in carrying out this project. Not but the
least, encouragement and help from friends and staff of computer centre and library
has contributed towards the timely completion of the project.
ABSTRACT
This abstract presents a comprehensive overview of the summer internship project conducted at
IIFL Securities, focusing on optimizing stock management through the implementation of data
analytic techniques. The project aimed to address the challenges faced by StockIt, an essential
component of IIFL Securities, in efficiently managing and forecasting stock movements.
To tackle this issue, a multi-step research methodology was employed. Initially, a thorough
analysis of historical stock data was conducted, examining trends, patterns, and fluctuations. This
was followed by the development and testing of predictive models using advanced statistical
techniques and machine learning algorithms. Real-time market data and relevant external factors
were incorporated to enhance the accuracy of the models.
The major findings of the study reveal significant improvements in stock management strategies.
The predictive models showcased remarkable accuracy in forecasting stock trends and price
movements. By utilizing these insights, StockIt at IIFL Securities could enhance its decision-
making processes, leading to optimized stock inventory levels and reduced financial risks.
Moreover, the implementation of data-driven strategies contributed to better understanding
customer preferences and market dynamics, further aiding in formulating tailored investment
recommendations.
In conclusion, this summer internship project successfully addressed the challenge of stock
management at IIFL Securities by leveraging data analytics techniques. The research procedures
involved thorough data analysis, model development, and real-time data integration, leading to
substantial enhancements in stock forecasting and inventory management. The outcomes
underline the significance of data-driven approaches in financial services and underscore the
potential for improved decision-making and customer satisfaction.
Keywords: Stock management, data analytic, predictive modeling, inventory optimization,
financial services, IIFL Securities.
TABLE OF CONTENTS
S.No. Page No.
1. Chapter 1: About the company
2. Chapter 2: Introduction to stock market
3. Chapter 3: Review of literature
4. Chapter 4: Research methodology
5. Chapter 5: Recommendation and
suggestion
6 Chapter 6: conclusion
CHAPTER 1
INTRODUCTION TO IIFL SECURITES
COMPANY HISTORY
IIFL, originally known as Probity Research & Services, embarked on its journey in October 1995
as a provider of information and analysis to institutional clients. Recognizing the untapped
potential of the internet in the retail sector, the company underwent a transformation in 1999,
shifting its focus to cater to a wider audience. This led to the launch of their internet portal,
www.indiainfoline.com, which offered news, market information, research, and interviews with
industry leaders.
In line with their evolving identity, the company changed its name to India Infoline Limited in
May 2000, signifying its commitment to serving the needs of the masses. As the years went by,
India Infoline emerged as a leading provider of business and financial information services in the
country.
Expanding its horizons, the company diversified into transnational services in 2000, facilitating
online trading in shares and securities, as well as the distribution of personal financial products
such as mutual funds and RBI Bonds. These activities were carried out through its wholly owned
subsidiaries. The launch of 5paisa, a broking service, further bolstered their presence in the
market. With its competitive brokerage rates, research expertise, and user-friendly online
platform, 5paisa quickly gained popularity among traders and investors.
Additionally, in December 2000, India Infoline Insurance Services Limited became a corporate
agent for ICICI Prudential Life Insurance Company Limited, further expanding their offerings to
include insurance services.
Driven by a vision to become the most respected company in the financial services space, IIFL
has consistently strived to provide top-notch services and innovative solutions to its customers.
COMPANY PROFILE
Within the India Infoline Group, a holding company called India Infoline Ltd oversees four
wholly-owned subsidiaries, each engaged in different yet complementary businesses. Together,
they offer a comprehensive range of products and services designed to help individuals grow
their wealth. With a workforce of over 14,000 employees spread across more than 60 locations in
India, the Group has established a strong presence in the financial services industry.
The corporate structure of the Group has evolved to navigate the intricacies of regulatory
frameworks while maintaining a harmonious synergy and adaptability to the ever-changing
dynamics of various businesses.
India Infoline Ltd, with its BSE code 532636 and NSE code INDIAINFO, operates in the
Finance & Investments sector. As an Indian private company, it is listed on the stock exchanges
and adheres to regulatory requirements overseen by In time Spectrum Registry Ltd, its registrar.
The auditors for the company are Sharp & Tannan Associates, Chartered Accountants, while
legal advice for the issue is provided by Crawford Baylay & Company. Compliance matters are
overseen by Ms. Komal Parikh, the Company Secretary, and syndicate services are provided by
Enam Securities Pvt. Ltd.
The public issue date for India Infoline Ltd was on April 21, 2005, with a face value of 2 and a
market lot of 1. The company's ISIN number is INE530B010.
Ownership within the company is structured with a dedicated management team and a board of
directors. Mr. Nirmal Jain serves as the Chairman and Managing Director, leading the company's
strategic direction. Other key members of the management team include Mr. R Venkataraman as
the Executive Director, Mr. Narendra Jain as the Chief Operating Officer, Mr. R Mohan as the
Chief Compliance Officer, and Mr. Kapil Krishan as the Chief Financial Officer.
The Board of Directors contributes to the company's governance and decision-making processes.
Notable members of the board include Mr. Sat Pal Khattar as a Non-Executive Director, Mr.
Nilesh Vikamsey as a Non-Executive and Independent Director, Mr. Kranti Sinha as a Non-
Executive and Independent Director, and Mr. A. K. Purwar in the role of Director.
Overall, India Infoline Ltd and its subsidiaries form a cohesive group that is dedicated to
providing exceptional financial services and solutions for individuals seeking to maximize their
financial potential.
IIFL PRODUCTS
The India Infoline Group is a financial powerhouse, offering a diverse range of
products and services aimed at helping individuals achieve their financial goals.
Let's take a closer look at their offerings and the unique way they cater to their
customers.
When it comes to home loans, India Infoline makes the process simple and
efficient. They provide expert guidance from technical and legal professionals,
ensuring that borrowers receive the best possible terms and interest rates. Whether
you're a salaried employee or a self-employed individual, India Infoline offers
home loans tailored to your specific needs. They provide various types of home
loans, including onew home loans, Swaraj home loans, home improvement loans,
NRI home loans, and balance transfer options.
For small and medium-sized entrepreneurs, India Infoline offers business loans
with specially designed interest rates. They focus on empowering rural
communities by providing accessible financing options, contributing to the
eradication of unemployment in these areas. Their SME loan offerings include
Smart SME loans, Insta SME loans, and Flexi SME loans.
In the realm of wealth management, India Infoline has earned a reputation for
understanding and responding to their clients' unique needs and aspirations. They
work closely with individuals to help them achieve their dreams and benefit from
their investments.
If you're in need of a personal loan, India Infoline provides loans up to Rs. 25 lakhs, with
disbursal into your account within just 8 hours after accepting their offer. These loans can be
utilized for various purposes, such as weddings, travel, asset purchases, and more. India Infoline
takes into account your monthly income, financial commitments, and eligibility to ensure that
you receive a loan that satisfies your dreams and aspirations.
For those seeking quick and easy financing, India Infoline offers gold loans. By pledging your
18-carat gold, you can access a loan starting from Rs. 3000, with the loan tenure fixed at 11
months and flexible repayment options. It is important to note that only genuine documents are
accepted for these loans.
In addition to their financial services, India Infoline has also ventured into real estate
development projects, including houses, land, and institutions. This diversification allows them
to cater to a wider range of customer needs and contribute to the growth of the real estate sector.
In terms of services, India Infoline excels in various areas. Their equity services provide
opportunities for investors to invest in top companies' shares, guided by expert professionals in
the share market. They also offer commodities trading, allowing individuals to trade goods and
services such as gold, silver, cotton, and oil through future contracts. Mutual funds are another
area of expertise for India Infoline, enabling individuals to pool their funds and invest in equities,
shares, and debentures of various companies. Additionally, their research department plays a
crucial role in providing insights and guidance for buying and selling shares at the right time.
As for IPOs, India Infoline assists companies in listing on stock exchanges by offering initial
public offerings. They help companies plan their future strategies and missions before going
public, facilitating the trading of their shares in the market.
While India Infoline has established a strong presence in the financial services industry, they do
face competition from companies such as Sharekhan, India Bulls, Angel Broking, ICICI
Securities, Kotak Securities, and Motilal Oswal. However, India Infoline's unique combination
of comprehensive services, customer-centric approach, and years of experience positions them as
a formidable competitor in the market.
SWOT ANALYSIS OF IIFL
Analyzing the strengths, weaknesses, opportunities, and threats (SWOT) of India
Infoline reveals interesting insights. Their strengths lie in their managerial depth,
with professionals from various financial sectors forming their leadership team.
Their governance structure and regulatory compliance also add to their strength.
Additionally, their focus on innovation, distribution reach, and customer service
sets them apart from the competition.
However, India Infoline does have areas of weakness, including high risk exposure
perceived by conservative populations and a lack of brand visibility due to limited
advertising efforts. The presence of relationship managers from non-local areas
may also pose a communication challenge with clients.
Opportunities for India Infoline include tapping into the high-income urban market
and further market penetration to maximize profits. As one of the oldest
stockbroking companies in India, they can leverage their established reputation to
compete with other players in the industry.
Despite these opportunities, India Infoline does face threats, such as foreign
stockbroking companies entering the Indian market and the constraints imposed by
regulations from the Reserve Bank of India and the central government.
Additionally, the limited establishment of new stockbroking companies poses a
threat to their market share.
CHAPTER 2
INTRODUCTION TO STOCK MARKET
The financial world is a dynamic and intricate realm, with stock exchanges, also known as stock
markets or exchanges, standing as vital pillars. These entities, whether structured as legal bodies
or mutual organizations, facilitate the trading of various securities including stocks, bonds, and
more. Stock exchanges serve as platforms where stockbrokers and dealers engage in transactions,
offering opportunities for corporate events such as the issuance and redemption of securities,
payment of income, and dividends.
Securities, the lifeblood of these exchanges, encompass stocks of companies, mutual funds,
pooled investments, and bonds. The process commences with the primary market, where stocks
and bonds are first offered to investors through initial public offerings (IPOs). Subsequent
trading unfolds in the secondary market, a domain dominated by stock exchanges. These
exchanges play a pivotal role in the stock market, being the nucleus of demand and supply
dynamics that influence stock prices.
Intriguingly, while stock exchanges provide a vital platform, companies aren't coerced to issue
shares through them, nor are shares mandated to be traded on these platforms. The landscape of
stock exchanges is expanding, becoming an integral part of the global market for securities.
Diving into the historical narrative of stock exchanges in India, the tale begins in 1875 with the
establishment of the Bombay Stock Exchange (BSE), the oldest in Asia. The landscape evolved
with exchanges such as the Ahmedabad Stock Exchange in 1894, catering to the textile mill
shares, and the Calcutta Stock Exchange in 1908, focused on plantations and jute mills. Over
time, more regional stock exchanges were established, and presently, India boasts 24 stock
exchanges, including the prominent Bombay Stock Exchange (BSE) and National Stock
Exchange (NSE), revolutionizing the Indian stock market.
Shares, the fundamental units of ownership in a company, hold a profound significance in this
financial ecosystem. Shareholders partake in the company's fortunes, entitled to dividends and
shouldering potential losses. Shares can be broadly categorized into equity shares, representing
the majority and offering voting rights, and preference shares, providing preferential profit
distribution and precedence in case of liquidation.
Understanding the workings of the share market is crucial for both seasoned investors and
beginners. The share market is categorized into primary and secondary markets. The primary
market witnesses the issuance of new shares and bonds to the public through IPOs, while the
secondary market involves the trading of stocks on exchanges like BSE, NSE, or international
counterparts like NYSE and NASDAQ.
In the primary market, companies seek long-term capital, and institutional as well as retail
investors participate in fresh securities issues. On the other hand, the secondary market aids
companies in fulfilling short-term liquidity needs and ensures fair dealing to safeguard investor
interests.
Investing in the primary share market involves engaging in IPOs, with shares being allotted
based on demand and availability after investors' applications are processed. To participate in
both primary and secondary markets, a Demat account to hold electronic shares and a trading
account for buying and selling are indispensable.
Dematerialization, a transformative process converting physical share certificates into digital
form stored in Demat accounts, has streamlined and modernized trading. Demat accounts serve
as digital repositories for a gamut of investments, from bonds and equity shares to government
securities, mutual funds, and ETFs.
Exploring the various segments of the stock market, equities are the linchpin, allowing the
trading of shares in both public and private companies. Demand and supply dynamics govern
share prices, making equity markets a crucial cog in the market economy.
Commodities, on the other hand, involve the trading of physical substances such as gold, copper,
and crude on a contract basis. This sector offers an avenue to diversify portfolios and act as a
hedge during volatile stock markets. The demand-supply balance significantly impacts
commodity prices.
Derivatives trading revolves around contracts based on variations in underlying assets like bonds
and commodities. Futures contracts, a key facet of derivatives, are utilized to hedge risks,
offering flexibility to traders.
The foreign exchange market deals with the exchange of currencies for commercial purposes,
operating electronically without a central market. This market operates 24/7 on a global scale,
presenting significant liquidity but also involving high risks.
In this ever-evolving financial landscape, knowledge and prudence are essential for navigating
the intricacies of each segment, empowering investors to make informed decisions and optimize
their financial venture.
CHAPTER 3
Review of literature
1. "The Cross-Section of Expected Stock Returns" by Eugene F. Fama and Kenneth R. French
(Journal of Finance, 1992) - This paper introduces the three-factor model, which considers
market risk, size, and book-to-market ratio as factors that explain stock returns.
2. "A Behavioral Explanation of the Value Effect" by Shlomo Benartzi and Richard H. Thaler
(Journal of Finance, 1995) - This paper explores behavioral biases that may explain the value
premium observed in stock returns.
3. "The Limits to Arbitrage" by Andrei Shleifer and Robert W. Vishny (Journal of Finance,
1997) - This influential paper examines the role of investor sentiment and limits to arbitrage in
explaining the deviations from fundamental value in stock prices.
CHAPTER 4
TOPIC OF RESEARCH REPORT
CUSTOMER BEHAVIOUR TOWARDS EQUITY AND
DERIVATIVE MARKET
CHAPTER 5
Recommendation and suggestion
IIFL aims to bolster its marketing prowess, intensifying
promotional campaigns.
Efforts will include educating investors on Derivatives &
Commodities through organized classes, corporate
presentations, consumer fair participation, and events.
Strategic advertising in relevant magazines like Business,
Management Services, and Electronics Media, as well as
setting up informational stalls in varied locations, will be
pivotal.
Special emphasis will target the 26-42 age group to
enhance awareness among specific clients.
CHAPTER 6
Conclusion
Upon comprehensive analysis of "A Study on the Significance and Relevance of Internal &
Interactive Financial Marketing with Special Reference to IIFL Securities," encompassing
theoretical frameworks, it is apparent that the application of internal & interactive strategies
holds relevance within the Indian stock market, albeit within certain bounds. These strategies
exhibit the potential to impart notable benefits to the stock market landscape.
In the context of the imperative role financial marketing plays in the Indian stock market, a
dynamic and vigilant approach is essential. The landscape necessitates continuous monitoring
and proactive enhancements to preempt market failures effectively. Although the current state of
financial marketing is commendable, it falls short in mitigating the risks inherent to broking
houses. It is imperative for broking houses to proactively implement measures to mitigate risks
for both the organization and its clientele, contributing to a more resilient and secure market
environment.
Bibliography
BOOKS: -
•Kotler Philip, Marketing Management: 13 Edition, 2006, Prentice Hall of India Ltd., New
Delhi.
• Kothari C.R., Research Methodology, New Delhi, Vikas Publishing House pvt.Ltd.
WEBSITES: -
www.investing.com
www.moneycontrol.com
http://investmentperformanceguy.blogspot.in/2012/01/making-sense-of-negative-
www.economictimes.com
https://www.iifl.com/
https://www.indiainfoline.com/
https://locate-us.iifl.com/stock-broker/
WEEKLY OVEVIEW OF INTERNSHIP
Date / time Work performed (1st week )
05-07-23 Observed the calling team of company
Wednesday
06-07-23 Observed the calling team of company
Thurday
07-07-23 Introduction to financial market
Friday
Date /time Work performed (2nd week)
10-07-23 Introduction session
Monday
11-07-23 Call the client training
Tuesday
12-07-23 Call the client training
Wednesday
13-07-23 Call the client training and lead up new clients
Thursday
14-07-23 Call the client and generated 2 client to process dmat account
Friday
Date /time Work performed (3nd week)
17-07-23 Explained about stock market
Monday
18-07-23 Call the client training
Tuesday
19-07-23 Call the client training
Wednesday
20-07-23 Call the client training and lead up new clients
Thursday
21-07-23 Call the client training
Friday
Date /time Work performed (4th week)
24-07-23 off
Monday
25-07-23 Call the client training and lead up new client
Tuesday
26-07-23 Call the client training and lead up new client
Wednesday
27-07-23 Call the client training and lead up new clients
Thursday
28-07-23 Call the client training and lead up new client
Friday
Date /time Work performed (5th week)
31-07-23 Call the client training and lead up new clients
Monday
01-08-23 Call the client training and lead up new clients
Tuesday
02-08-23 Call the client training and lead up new clients
Wednesday
03-08-23 Call the client training and lead up new clients
Thursday
04-07-23 Call the client training lead up new clients
Friday
Date /time Work performed (6th week)
07-07-23 off
Monday
08-07-23 Tuesday Call the client training
09-07-23 Call the client training and lead up new client
Wednesday
10-07-23 Call the client training and lead up new clients
Thursday
11-07-23 off
Friday
Date /time Work performed (7th week)
14-08-23 Call the client training and lead up new clients
Monday
15-08-23 Off
Tuesday
16-08-23 Call the client training and lead up new clients
Wednesday
17-08-23 Call the client training and lead up new clients
Thursday
18-08-23 Friday Call the client training and lead up new clients
