SUMMER TRAINING PROJECT REPORT

ON
“THE STUDY OF STOCK MARKET”
AT
TATA SECURITIES

Submitted in partial fulfillment of the requirement

For the award of degree
Of
BACHELOR OF BUSINESS ADMINISTRATION
SESSION (2016-2019)
SUBMITTED BY: SUBMITTED
TO:
ABHISHEK CHAUHAN. MUNISH TIWARI SIR
BBA 6th semester
Roll No.-168779002

RAKSHPAL BAHADUR MANAGEMENT INSTITUTE,

Greater Noida
(Affiliated to Chaudhary Charan Singh University, Meerut)
 ACKNOWLEDGEMENT

I would like to express my heartfelt thanks to many people. This dissertation is an effort
to contribute towards achieving the desired objectives. In doing so, I have optimized all
available resources and made use of some external resources, the interplay of which,
over a period of time, led to the attainment of the set goals.

I take here a great opportunity to express my sincere and deep sense of gratitude to my
esteemed faculty MR. MUNISH KUMAR TIWARI for giving me an opportunity to work
on this project. The support & guidance from sir, was of great help & it was extremely
valuable.

I also express my sincere thanks to all the people who, directly or indirectly, contributed
in time, energy and knowledge to this effort.

Your name

ABHISHEK CHAUHAN
 DECLARATION BY THE STUDENT

I ABHISHEK CHAUHAN S/O MR. SHYAM SINGH CHAUHAN

student of BBA SEM-6 (2016-19) Hereby declare that I have completed a project as
Summer trainee on the topic Study of Stock Exchange at TATA SECURITIES for the
partial fulfilment of the degree of BBA course, it is my original work and it has not been
copied from others.

Place;-
Date; SIGNATURE –
ABHISHEK CHAUHAN
 TABLE OF CONTENTS
S.
TOPICS Page no.
NO.

1. INTRODUCTION TO TOPIC 1
2. BOMBAY STOCK EXCHANGE 4
3. NATIONAL STOCK EXCHANGE 8
4. STOCK EXCHANGE
5. SEBI 17
6. TATA SECURITIES 25
7. DEMAT SERVICES 34
8. CLIENT FOCUS 36
9. WIDE OPTION WHILE TRADING 42
10. TRADING DERIVATIVES 45
11. STOCK MARKET 48
12. HISTORY
13. IMPORTANCE OF STOCK MARKET 51
14. BEHAVIOUR OF STOCK MARKET 58
15. MARGIN BUYING 64
16. BASIC RISK IN TRADING 66
17. FINDING AND RECOMMONITION 67
18. CONCLUSION 69
19. BIBLIOGRAPHY 70
 PREFACE

The microstructure of the stock market in which brokers work is highly Dynamic and
volatile. Many stocks are available to be bought and sold, each exhibiting its own patterns
and characteristics that are highly unpredictable. With so many options and
considerations that need to be taken into account, it is an extremely difficult task for a
broker to investigate aspects of the stock market and consistently provide effective Advice
to their clients.
Thus, brokers perform their day-to-day tasks with the aid of a broker system. Such a
system should provide tools for interacting with Exchanges and performing analysis. As
a consequence, these broker Systems are quite large and complicated by themselves.
This research aims to analysis Stock broker on the basis of their Services, products,
growth, and their competitiveness. Because Stockbrokers are one of the main
participants in stock exchanges Worldwide, they often act as an agent for their clients,
making trades on their behalf. They also act as advisors, providing suggestions to their
Clients on what stocks to buy and sell.
 INTRODUCTION TO TOPIC

In most industrialized countries, a substantial part of financial wealth is not managed

directly by savers, but through a financial intermediary, which implies the existence of an
agency contract between the investor (the principal) and a broker or portfolio manager
(the agent). Therefore, delegated brokerage management is arguably one of the most
important agency relationships intervening in the economy, with a possible impact on
financial market and economic developments at a macro level. In most of the metros,
people like to put their money in stock options instead of dumping it in the bank-lockers.
Now, this trend picks pace in small but fast developing cities like Chandigarh, Gurgaon,
Jaipur, Ambala etc. My research is based on the residents of NOIDA and its nearby areas.
As the per-capita-income of the city is on the higher side, so it is quite obvious that they
want to invest their money in profitable ventures. On the other hand, a number of
brokerage houses make sure the hassle free investment in stocks. Asset management
firms allow investors to estimate both the expected risks and returns, as measured
statistically.

There are mainly two types of Portfolio management strategies.

1. Passive Portfolio Strategy
2. Active Portfolio Strategy

1. Passive Portfolio Strategy: A strategy that involves minimal expectation

Input, and instead relies on diversification to match the performance of
Some market index. A passive strategy assumes that the marketplace will
Reflect all available information in the price paid for securities

2. Active Portfolio Strategy: A strategy that uses available information and

Forecasting techniques to seek a better performance than a portfolio that is

1
There is growing competition between brokerage firms in post reform India. For investor
it is always difficult to decide which brokerage firm to Choose.
Research was carried out to find which brokerage house people prefer and to figure out
what people prefer while investing in stock market. This study suggests that people are
reluctant while investing in stock and Commodity market due to lack of knowledge.
Main purpose of investment is returns and liquidity, commodity market is less preferred
by investors due to lack of awareness. The major findings of this study is that people are
interested to invest in stock market but them Lack knowledge. Through this report we
were also able to understand, what our Company’s (Tata securities) positive are and
strong points, on the basis of which we come to know what can be the basis of pitching
to a potential Client.
At the end of the report limitations, SWOT analysis, conclusion of the research and
Appendix which includes questionnaire and the list of the city where the Argent capital
are running. Last there is Bibliography, FAQ, and Glossary that has the technical terms
of the report.

2
.

BSE SENSEX 30
4
 • Started on 01 January, 1986
• Value-weighted index
• Consists of the 30 largest and
most actively traded stocks

BOMBAY STOCK EXCHANGES:

This stock exchanges, Mumbai, popularity known as “BSE” was established in 1875 as
“The native share and stock brokers associations”, as a voluntary non-profit making
association.

It has an evolved over the years into its status as the premiere stock exchanges in the
country. It may be noted that the stock exchanges the oldest one in Asia, even older than
the Tokyo Stock Exchanges, which was founded in 1878.

The exchanges, while providing an efficient and transparent market for trading in
securities, upholds the interests of the investors and ensures redressed of their
grievances, whether against the companies or its own members brokers.

It also strives to educate and enlighten the investors by making available necessary
informative inputs and conducting investor’s education programmers.

5
A governing board comprises of elected directors, 2SEBI nominees, 7 public
representatives and an executive director is the apex body, which decides the policies
and regulates the affairs of the exchanges.

The executive director as the chief executive officer is responsible for the day today
administration of the exchanges. The average daily turnover of the exchange during the
year 2000-01 (April-March) was Rs 3984.19 crores and average numbers of daily trades
5.69 Lakhs

However, the averages daily turnover of the exchanges during the year 2001-2002 has
declined to Rs. 1224.10 crores and number of average daily trades 5.69 Lakhs.

The average daily turnover of the exchanges during the year 2001-2003 has declined and
number of average daily trades during the period is also decreased. The Ban on all
deferral products like BLESS AND ALBM in the Indian capital markets by SEBI with effect
from July 2, 2001, abolition of account period settlements, introduction of compulsory
rolling settlements in all scripts trades on the exchanges. With effect from dec31, 2001
etc. have adversely impacted the liquidity and consequently there is a considerable
decline in the daily turnover at the exchanges. The average daily turnover of the
exchanges present scenario is 110363 (Laces) and number of average daily trades
1057(Laces)

NSE NIFTY 50

6
The 50 stocks that were most
favored by institutional
investors in the 1960s and
1970s.

7
 NATIONAL STOCK EXCHANGES:

The NSE was incorporated is now 1992 with an equity capital of Rs 25 crores. The
international securities consultancy (ISC) of Hong Kong has helped in setting up NSE.

ISE has prepared the details business plans and installation of hardware and software
system. The promotion for NSE were financial institutions, insurances companies, banks
and SEBI capital markets Ltd, infrastructure leasing and financial services Ltd and stock
holding corporation Ltd.

It has been set up to strengthen the move towards professionalization of the capital
market as well as provide nationwide securities trading facilities to investors. NSE is not
an exchange in the traditional sense where broker own and manage the exchanges.

A two tier administrative set up involving a company board and a governing aboard of
the exchanges is envisaged. NSE is a national market for shares PSU bonds, debentures
and government securities since infrastructure and trading facilities are provided.

National Stock Exchange

The National Stock Exchange of India Limited (NSE) is the leading stock exchange of
India, located in Mumbai. The NSE was established in 1992 as the first demutualized
electronic exchange in the country. NSE was the first exchange in the country to provide
a modern, fully automated screen-based electronic trading system which offered easy
trading facility to the investors spread across the length and breadth of the country.
Vikram Limaye is Managing Director & Chief Executive Officer of NSE.
National Stock Exchange has a total market capitalization of more than US$2.27 trillion,
making it the world's 11th-largest stock exchange as of April 2018. NSE's flagship index,
the NIFTY 50, the 50 stock index is used extensively by investors in India and around the
world as a barometer of the Indian capital markets. Nifty 50 index was launched in 1996
by the NSE. However, Vaidyanathan (2016) estimates that only about 4% of the Indian
economy / GDP is actually derived from the stock exchanges in India.

Unlike countries like the United States where nearly 70% of the GDP is derived from
larger companies and the corporate sector, the corporate sector in India accounts for only
12-14% of the national GDP (as of October 2016). Of these only 7,800 companies are
listed of which only 4000 trade on the stock exchanges at BSE and NSE. Hence the
stocks trading at the BSE and NSE account for only around 4% of the Indian economy,
which derives most of its income related activity from the so-called unorganized sector
and households.

Economic Times estimated that as of April 2018, 60 million (6 crore) retail investors had
invested their savings in stocks in India, either through direct purchases of equities or
through mutual funds. Earlier, the Bimal Jalan Committee report estimated that barely
1.3% of India's population invested in the stock market, as compared to 27% in USA and
10% in China.

History
NSE is mainly set up in the early 1990s to bring in transparency in the markets. Instead
of trading membership being confined to a group of brokers, NSE ensured that anyone
who was qualified, experienced and met minimum financial requirements was allowed to
trade. In this context, NSE was ahead of its times when it separated ownership and
management in the exchange under SEBI's supervision. The price information which
could earlier be accessed only by a handful of people could now be seen by a client in a
remote location with the same ease. The paper-based settlement was replaced by
electronic depository-based accounts and settlement of trades was always done on time.
One of the most critical changes was that a robust risk management system was set in
place, so that settlement guarantees could protect investors against broker defaults.