Professional Documents
Culture Documents
In todays fast moving economy only theoretical knowledge is not sufficient for an
individual to perform sufficiently. To fill up the gap between theory and practical
we must have enough theoretical as well as practical knowledge regarding business
environment. And for this purpose this Summer Internship Project is carried out,
which has helped me to gain both practical as well as theoretical knowledge.
Practical training is one of the vital aspects of management field. Thus, practical
training enables students in understanding the administration and functions of a
corporate entity. Practical training helps an individual to develop managerial
abilities. Thus, training acts as a bridge between theoretical knowledge and
practical implementation of the knowledge. Hence, it helps an individual to know
the actual uses and implications of the theoretical knowledge acquired in the
classroom.
Acknowledgement
Every work in the world is done with the help of some or other. He or she may
directly or indirectly involve in that work. According to a famous saying we should
thank the one that have helped you in our work. So here in this part I am doing the
work of thanking all those people who helped me in making this report.
I am very much grateful to Prof. Falguni Shelani as she helped me throughout the
project and provided all the essential guidance for preparing a good project report.
I am also thankful to Mr. Sunil Shah (Vice President, Arcadia Shares) and all their
staff members for co-operating with me.
Declaration
I undersigned Dimple Rajvir the student of MBA, Semester 3 hereby declare that
the project presented is my own work and has been carried out under the guidance
of Prof. Falguni Shelani, MEFGI.
This report has not been previously submitted to any other university or any
institution for examination or any other purpose.
Date:
Place: Rajkot
Industry overview
HISTORY
Indian stock market is one of the oldest in Asia. Its history dates to nearly 200
years ago. The earliest records of security dealing in India are merged and obscure.
By 1830s business on corporate stocks & 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 1850s witnessed a rapid development of commercial enterprise and brokerage
business attracted many men into the field and by 1860 the no. of brokers increased
into 60. In 1860-61 the American Civil War broke out and cotton supply from
United States and Europe was stopped; thus, the share mania in India began. The
no. of brokers increased about 200 to 250. However, at the end of the American
Civil War, in 1865, a disastrous slump began (for e.g., Bank of Bombay share
which had touched Rs. 2850 could only be sold at Rs. 87). 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
known as The Stock Exchange). In 1895, the Stock Exchange acquired premise
in the same street and it was inaugurated in 1899. Thus, the Stock Exchange at
Bombay was consolidated.
Thus in the same way, gradually with the passage of time no. of exchanges were
increased and at currently it reached to the figure of 24 stock exchanges.
1850
Shares of banks and securities of East India co. traded inn Mumbai under
a sprawling banyan tree in front of Town Hall
1875
1956
Rs.48000 in 1920.
Securities contract regulation act passed.
1957
The BSE and eight other stock exchanges registered under the Securities
Trading Contract act.
1982
The BSE classifies scripts into Group A for carry forward, Group B for
cash transaction.
1986
The BSE 30-share Sensitivity index (a.k.a. the Sensex) compiled updated
every two minutes.
1987
1992
1995
The BSE computerized its trading operations, signaling the end of 120
years of floor-trading.
1996
NSE 50 indexed launched April 22. NSDL set up as the first depository in
India, and the NSE commences trading in dematerialized securities on
2000
December 26.
The SEBI approves the report on net trading brought out by the SEBI
committee on the Net based trading and services.
the
e x c h a n g e s h a v e s w i t c h e d o v e r f r o m t h e o p e n o u t c r y trading
system to a fully automated computerized mode of trading known as
participants
in
Indian
secondary
and
pr i m a r y m a r k e t i s t h e S e c u r i t i e s a n d E x c h a n g e
B o a r d o f I n d i a ( SE B I ) Limited.
Company overview
INTRODUCTION TO ARCADIA SHARES AND STOCK BROKERS PVT
LTD.
Arcadia came to life in 1995, right on the wave of a post-liberalization market
economy. As financial services became a major contributor to economic growth,
Arcadia has steadily shaped into a leading financial service provider. In 1995, we
were a small company with just 5 employees. Today, we have a market presence
across the country, with over 275 branches & franchisee outlets. We have
established a strong retail network not only in metros but also in tier two and tier
three cities.
Traditionally, our operation was concentrated in fast-moving capital market of
Western India. But sensing great potential, we have launched strong expansion
plans in the North and the South. This systematic presence-building and efficient
delivery of service has put Arcadia among the fastest growing retail broking houses
in the country, with memberships in:
NATIONAL STOCK EXCHANGE OF INDIA (NSE)
BOMBAY STOCK EXCHANGE (BSE)
MULTI COMMODITY EXCHANGE (MCX)
NATIONAL
COMMODITY
&
DERIVATIVES
EXCHANGE
(NCDEX)
Working with the leading stock exchanges and noted financial institutions has
drilled in us the importance of real-time information and use of analytical tools in
investment decisions.
Practicing this over the years has made us experts in understanding investor
requirements. Arcadia's integrated and innovative use of technology provides
clients with the ability to trade offline & online. Clients also have constant access
to their account information via internet.
TOP MANAGEMENT:
1. MR.ANTONY SEQUEIRA.
(FOUNDER AND MANAGING DIRECTOR)
2. NITIN BRAHMBHATT.
(DIRECTOR)
3. MR.SUNIL C.SHAH
(VICE-PRESIDENT)
ADDRESS:
11, PANCHNATH PLOT CORNER,
NR.PANCHNATH MANDIR,
DR.RAJENDRA PRASAD ROAD,
RAJKOT-360001
About us
Company information
Name:
Registered
Office:
Head Office:
As above
Regional Office:
Founder:
Director:
Regional Head:
Contact no.:
+91 22 67739999
Dealing Room:
+91 22 26478888
Toll free:
1800 22 1555
Fax:
+91 22 26478988
E-mail:
info@arcadiashare.com
Website:
www.arcadiastock.com
Membership
Services
1. Equity Investment
Looking for an easy and convenient way to invest in equity and take
positions in the futures and options market using our research and tools. To
start trading in Equity, all you need to do is open an online trading account.
You can get help opening the account and get guidance on how to trade in
Equity
2. Commodity Trading (MCX - NCDEX)
Enter the new world of commodity futures. Investors looking for a fast
paced dynamic market with excellent liquidity can NOW trade in
Commodity Futures Market. The Commodity Exchange is a Public market
forum and anyone can play in these vital Commodity Markets. ARCADIA
COMMODITIES AND TRADING can certainly be your point of entry to
the commodity markets. ARCADIA is registered trading cum clearing
member of NCDEX and MCX. Participation is not difficult.All you need is
to open an account with us. We shall offer you advice and research on
investments.
3. Derivatives Trading
Futures and options are derivatives, which use equity as their underlying.
Hence their Equity Advisory Group (EAG), which is highly qualified, will
also act as your advisors and help you take informed decisions while trading
in these derivative instruments.
4. Internet Trading
Making the right trade at the right time! Welcome tour E-Broking service
which brings you an experience of online buying and selling of shares with
just a click.
5. Mutual Fund Advisory
Transact in a wide range of Mutual Funds. Mutual funds are an attractive
means of saving taxes and diversifying your investment portfolio. So if you
are looking to invest in mutual funds, ARCADIA offers you a host of mutual
fund choices under one roof; backed by in-depth information and research to
help you invest smartly
6. IPO Distribution
IPO or Initial Public Offer presents good opportunities for netting high
returns on your investments in a relatively short period of time if you
invest early. Get information on IPO news, forthcoming IPOs and lot more.
7. Demat Services (CDSL)
In the times of T+2 having a Demat account linked to your trading account
becomes more convenient. The no-trading members can also avail of our
Depository services. You receive regular account reports and an efficient
service at all times. ARCADIA is a member of CDSL.
DEPARTMENTS
KYC
Risk Management
Admin
Banking
DP
Back-office
Relationship Management
Billing
IT
Sales
Feedback
Compliance & Legal
SWOT ANALYSIS
During my training at Arcadia shares and stock, I came to know the strengths,
weaknesses, opportunities and threats for the company. It will be very useful for
the company to analyze them and for that purpose the SWOT analysis of the
company is presented here.
STRENGTHS
Well maintained infrastructure
Dedicated, intelligent and loyal staff
Competitive brokerage
The best investment advice through dedicated research and reports.
Wide product range to enable the clients to choose the best alternative
One of the best DPs in India
A positive image in existing clients
WEAKNESSES
Time consuming process for account opening, resolving the problems of the
customers, etc.
Company is present in only one business, i.e. Stock Broking, so there is no
scope for cross-selling
OPPORTUNITIES
Slope of stock market towards delivery based transactions
Open interest of the people to enter in stock market for investing
Attract the customer who are dissatisfied with other brokers
An indirect opportunity generated by the stock market due to its current
situation
Online trading a/c market has vast potential
Derivatives and Commodities markets are growing so, there is enormous
potential for these market
THREATS
Increasing competition from existing as well as new players
A threat of losing clients for any kind of weakness of the company
Indirect threat from instable stock market, i.e. low/no profit of Angels
clients would lead them to go for other broker
New multinational and national players are coming with competitive
products
Research methodology
MEANING OF RESEARCH
Research is the process of gathering, recording and analyzing of critical and
relevant facts about
IMPORTANCE OF RESEARCH
In this modern era, for every organization service quality is having great
importance. Therefore every organization it is necessary to study the rate of
satisfaction of their clients. The basic need for studying the satisfaction of the
clients is to find out their view about the services provide by Arcadia Shares
and Stock PVT. LTD
The research study on satisfaction provides necessary information to the
company. Which helps the company to take action to improve the service
quality.
Study of Service Quality helps the company to maintain a standard and
increase productivity by improving service.
This study tells us how much the employees are capable and their interest at
work place.
They will care about the quality of their work.
They will create and deliver superior value to the client.
They are more committed to the organization.
Their works are more productive.
OBJECTIVE OF STUDY
The broad objective of this study is to know the satisfaction level of clients for
services provide by Arcadia. The specific purposes of this study are:
RESEARCH OBJECTIVES:
- To study the trading strategies of investors in volatile market
- To study the factors influencing investors in their investment
- To study the behavior of investors in different market situation.
- To study stock market and understand its market segment.
- To know the awareness level regarding cash & derivatives segment in stock
market.
- To study the annual investment level of investors in stock market.
- To know investment behavior of people in stock market.
-
RESEARCH DESIGN
What is Research Design?
Research design can be thought of as the structure of research it is the glue that
holds all of the elements in a research project together. A research design is the
arrangement of conditions for collection and analysis of data in a manner that aims
to combined relevance to the research purpose with economy in procedure.
1. Sampling
2. Observation
3. Statistical
4. Operational
As per this research sampling design method is very useful for the survey on the
service quality of the Arcadia.
SOURCES OF DATA
As we all know that there are mainly two sources of data i.e.
Primary
Secondary
Primary Data:
The data, which is collected directly from the respondents, is called primary data.
The normal procedure is to interview some people individually to get a sense of
how people feel about the derivatives & commodities segment.
So far as our research is concerned, primary data is the main source of information.
We have collected data through Questionnaire.
Secondary Data:
Data collected for some purpose other than the problem at hand are called as
secondary data.
We have used following secondary data sources.
1. Library Research
I have searched many books and materials like Philip kotler to understand the
research methodology.
2. Business Magazines
Many business magazines are referred to gather data about various trading
strategies.
3. Internet Surfing
There are many search engines which provides us the data for variety of topics
such as Google Search, Yahoo Search etc. we have used both of the search engines
for gathering the data. We have also used various financial portals such as
moneycontrol.com, bseindia.com, nseindia.com, etc. we have also taken the help of
arcadiastock.com in order to fulfill our requirement.
RESEARCH INSTRUMENT
The research instrument used for primary data collection is questionnaire. The
questionnaire has close ended questions. (Questionnaire is attached as
Annexure) The questionnaire is supposed to be given to an individual to fill up on
his own.
Personal Bias:
People may have personal bias towards particular investment option so they may
not give correct information and due to which conclusion may be derived.
Time Limit:
The time duration of the research is short thats why the information is not covered
fully.
Sample Area:
The area was limited to Rajkot city only.
Sample Size:
The last limitation is Sample size, taken by us is of 100 only; due to which we
might not get the proper results.
Trading Segment
8%
9%
Cash
Derivative
Both
83%
47%
20 - 40
53%
beyond 40
Investment
14%
below 1 lakh
100000 - 500000
beyond 500000
52%
34%
4. What factors do you consider while investing in cash & Future market?
7% 1%
Factors
Fundamenta analysis
20%
Technical Ananlysis
Tips
Global Markets
55%
Broker
Others
12%
5%
5. Which T.V. channels do you watch regularly for getting updates about the
stock market?
TV Channels
1%
7%
7%
4%
CNBC TV 18
Times now
Zee Business
CNN IBN
Others
82%
From the above data we can analyze that majority of the respondents regularly
watch CNBC TV18 as CNBC Awaaz while few of the investors prefer the other
news channels like Zee Business, Times Now, etc.
From the above data we can analyze that majority of the respondents goes with
market conditions while few respondents trades specifically Intra-day or Delivery
Based.
1.
2.
3.
4.
5.
6.
Out of 100 respondents, 31 respondents prefer stop loss and target price. 28
respondents follow only target price without any stop loss. 21 respondents prefer to
buy on dips while 9 respondents prefer to sell on hike. 26 respondents prefer
trading with target price while 16 respondents doesnt follow any fixed target price.
3. What are the indicators you refer while trading in cash market?
(Give ranks)
Indicators
8
7
6
5
4
3
2
1
0
% change
BSE
NSE
5% - 10%
25%
17%
10% - 15%
48%
35%
27%
48%
From the above chart we analyze that about 76% of the respondents deals in both
the segment while 22% respondents prefer only Future Market and the rest of
respondents deals in only Option Market Segment. Hence we can conclude that
people are not much aware about Option Market Segment.
From the above data, we analyze that 48% of respondents prefer Position Trading
that means they are ready to take risk and they also prefer more profit/loss. While
39% of respondent like to have Intra-day trading which shows that they are ready
to carry forward their position and they prefer small gain/loss, while 13%of
respondents are indecisive about their trading strategy.
2%
speculator
hedger
arbitrator
89%
From the above data, we can conclude that most of respondents are speculators
which mean that they are willing to enormous risk. While only 9 % of the
respondents are hedgers who likes to hedge their positions in the option markets
and only 2 % of the respondents are arbitragers. So we can say that most of the
respondents are risk takers in the markets.
a)
b)
c)
d)
e)
f)
g)
Out of 100 respondents, 56 respondents prefer to have stop loss and target price
while 62 respondents prefer to trade with out stop loss and without target price
and 49 respondents prefer to trade with stop loss and without target price. 42
respondents prefer to hedge in Option Market while 38 respondents prefer to
buy on dips/sell on hike. So we can conclude that majority of respondents gives
importance to stop loss and target price.
5. What are the indicators you refer while trading in derivative market?
Indicators
8
7
6
5
4
3
2
1
0
From the above data, we analyze that people considers open interest, Volume,
Global Markets as the most important indicators while trading in derivative
market. Here Open Interest indicates net outstanding contracts in derivative market
which people consider most important. While people prefer to give less priority to
technical level, top gainer/loser, percentage changes in price. Hence we conclude
that global market, open interest, volume are the major indicators which people
prefer.
6. What percentage of change in BSE and NSE do you consider while taking
decision to set your position in derivative markets?
% change
BSE
NSE
5% - 10%
18%
12%
10% - 15%
42%
35%
40%
53%
7. What will be your trading strategy on the happening of any major events like
Union Budget, Election, Natural Calamities, etc.?
From the above data, we analyze that 39% of respondents prefer wait and
watch strategy because they expect the market to be very volatile in the
Coming days so they wait for market to stabilize and thus will enter after the
happening of the event. While 33% of respondents prefer to square-up their
position as they does not want to take risk.15 % of respondents prefer to hold
their position and want to take further risk and 11% of respondents like to
reverse up their overall position according to their prediction.
From the above data, we analyze that 34% of respondents follow market rumors
which shows that they are very sensitive in their trading while 17% of respondents
follow media such as CNBC TV18, Zee business, etc and takes their decision
accordingly. 13% of respondents follow expert opinions and behave accordingly.
Majority of respondents behaves in different ways like some of them rely on their
own experience, some remains neutral while some of them are ready to take further
risk.
FINDINGS
HYPOTHESIS
CONCLUSION