NIKHIL

TradeTrek: Journey through Stock Markets
Summer Internship Report

On
Submitted by
Nikhil Prakash Dodake
SIP Organization: SM MONEY MANTRA
Industry Supervisor
Mr. SHUBHAM S. MAHULIKAR
Designation Share Market & Financial Services
at SM MONEY MANTRA
Institute Supervisor
Prof. Dr. Shrikant Diwan
Department of Management Studies (MBA), PRMIT&R Badnera
Submitted to
In partial fulfillment of requirement for the degree of Master of Business

Administration of S.G.B. Amravati University, Amravati
Vidarbha Youth Welfare Society's
Prof. Ram Meghe Institute of Technology and Research Badnera
(An Autonomous Institute)
Date of Submission: 05/09/2023
Summer Internship Program

Vidarbha Youth Welfare Society's
Prof. Ram Meghe Institute of Technology and Research Badnera
(An Autonomous Institute)
Department of Management Studies (M.B.A)

CERTIFICATE
“This is to certify that the investigation described in this report titled “TradeTrek: Journey
through Stock Markets” has been carried out by Mr./ Ms. Nikhil Prakash Dodake during the
summer internship project. The study was done in the organization. Sm Money Mantra in
partial fulfillment of requirement for the degree of master of business administration of S.G.B.
Amravati University, Amravati. This work is the own work of the candidate, complete in all
respects and is of sufficiently high standard to warrant it submission to the said degree. The
assistance and resources used for this work are duly acknowledged.”
Prof. Dr. Shrikant Diwan Prof. Dr. Atul Kharad
(SIP Supervisor) (Departmental SIP Coordinator)
Prof. Ashish Deshmukh Prof. Dr. G. R. Bamnote
(Head of Department, MBA) (Principal, PRMITR Badnera)
Date : 05/09/2023
Place : Amravati




Declaration
I Nikhil Prakash Dodake hereby declared that this report on summer internship is the result of
my own work on Share Market & Financial Services at Sm Money Mantra during 1 July 2023
to 15 August 2023 and the same has not been previously submitted to any examination of this
University, or any other University. The summer internship report shall be liable to be rejected
and/or cancelled if found otherwise.
Date- 05/09/2023 Nikhil Prakash Dodake
Place-Amravati

Acknowledgment
I take this opportunity to acknowledge the deep sense of gratitude towards my Guide, Prof.
Dr. Shrikant Diwan , Assistant Professor, Department of Management Studies-MBA, Prof.
Ram Meghe Institute of Technology and Research, Badnera-Amravati & Industry Guide Mr.
Shubham Maulikar , SM Money Mantra . While working on summer internship, I faced
innumerable problems and practical difficulties, but the revered guide proved to be my
inspiration and sailed me through all the obstacles impressing upon. I am gratefully indebted
to them for their efforts and excellent Guidance from time to time during the entire course of
Summer Internship Program work.
My sincere thanks to our Honorable, Principal, Dr.G. R.Bamnote, Prof. Ram Meghe Institute
of Technology and Research, Badnera- Amravati, for their constant encouragement. I wish to
thank our Honorable, Head of the Department, Prof. A. V. Deshmukh, for their Valuable
Guidance and motivation. I would like to thanks Prof. Yuvraj Vaidya, Departmental T& P
Coordinator & Prof. Dr. Atul Kharad SIP Coordinator for their constant support during
internship tenure.
I would like to thanks all the teaching and non teaching staff of Department of Management
studies for their valuable support. I would like to thank my beloved parents & friends for
their inspiration and motivation provided by them in the due course of my Summer Internship
Program work. I would also like to extend my sincere thanks to all those persons who provided
their timely and much needed help directly and indirectly for the completion of this Summer
Internship Work.
Date- 05/09/2023 Nikhil Prakash Dodake
Place-Amravati MBA, PRMITR Badnera

INDEX
Sr No Topics Page No
01 Executive Summary 01
02 Organisation Profile 02
03 Outline of Task Undertaken 03
04 Learning through the project -
Week One
Introduction Of Stock Exchange 04
History Of Stock Exchange In India 04
Securities Exchange Board Of India 05
Bombay Stock Exchange 07
National Stock Exchange 08
Market Participant 09
Week Two
Equity And Valuation 11

 Fundamental Analysis
 Technical Analysis
Week Three
Derivative Market 21
Week Four
Mutual Fund 25
Financial Planning And Securities Markets
28
05 Contribution to the host organization 30
06 Conclusion 31
07 Appendices 32
08 References 37

EXECUTIVE SUMMARY
After successfully completing my Summer Internship Program in " Sm Money Mantra", a Financial
Consulting and Stock Market Training Company, I gained learnings about Trading and Investment in different
pool of stocks. The company, being an partnership firm , conducts Training and Development, Advisory
Services, Portfolio Management and Consulting Services. The learnings which I have got after performing
my internship is all about stock and portfolio management, making Technical and Fundamental Analysis of
stocks before Investing into it and getting a brief about stock market operations. One should only invest up to
his/her 30% of earnings and should involve into savings into no risk factors which would help him to have
sufficient funds at the time of need, after making all necessary deductions which include basic expenses. We
should also invest into diversified portfolio's such that there is no lose-lose situation for any investor. The
basic difference of being an investor or an trader is that you need to keep patience and let the stocks make a
rising position in the market, thereafter you can sell those stocks in the market and gain huge percentage profits
from the market. This is the most beneficial trait of any investor which shows the keenness and dedication for
stock rise patience of the investor as compared to risky frequency trading. A trader is an impatient market
player which plays on stocks for very span period and takes immediate profits over stock growth, even on a
daily basis.
It is said that one should invest in at least 11 types of diversified stocks which would keep him/her in win and
loose situation where, if a stock loose its standing and falls down in the market then simultaneously, another
stock of opposite nature shows arise in the market.
There are possibilities of stock fall, which are also called as factors of market volatility, have got basically
three main reasons –
1) Growth, Stagnation or Downfall in company’s performance for that stock which results in change in
price of the stock.
2) Government decisions affecting the direct or indirect impact on company’s policies, workings or
actions.
3) Direct involvement of SEBI (in case of India) being the regulatory authority of performing stock
market operations.
There are also various other factors which tend to show a direct or indirect impact over the stocks. Post
completion of my internship I got the accomplished learning about how Indian stock market operates which,
was a desired field of learning for me.
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ORGANISATION PROFILE :
SM MONEY MANTRA
Sm Money Mantra family welcomes all the investors to a highly committed and dependable financial organization that strives to
deliver the best of investment related services. At Sm Money Mantra we believe and dare to do what other financial and stock
broking houses feel impossible in terms of client satisfaction. We are new but confident name in financial market. The company
is always aggressive to adopt the latest technologies for its operations. Sm Money Mantra is using some of the best brains in trading
and some of the best software and hardware systems to give its clients maximum profit. We are incorporated in 2019, having
membership of Upstock and NJ wealth .We offer a large variety of investment avenues to cater to the needs of different classes
of investors by our physical presence in different parts of India.Advantages.
Firm name - SM MONEY MANTRA

Director - Shubham Mahulikar
Contact number - 7028164294
Email ID - mahulikar2712@gmail.com
Authorized partner of Upstox and Nj wealth
(AMFI Registered mutual fund distributor)
Investment Services available –

 Shares
 Mutual fund
 Insurance (All)
 PMS
 NPS
 Bond
 Loans against securities & mutual fund
Address - Purva Nagar Near Nisarga Lawn Sai Nagar Amravati.
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Outline Of Task Undertaken

Duties and Responsibilities of a Mutual Fund Distributor?
Providing investment advice means addressing the concerns of an investor. A professional with requisite skills,
qualifications and expertise can offer sound investment advice. Therefore, as an investor, one must consult a
certified mutual fund agent with relevant experience. The following are the roles and responsibilities of a
mutual fund distributor.
 Educating the Investor

 Evaluating Risk Tolerance
 Analysing Investment Options
 Devising an Investment Strategy
 Helping Investors for Portfolio Diversification
 Documentation
DUTIES IN INTERNSHIP
 Aadhar Pan Link Status
 KYC Checking
 Demat Account Opening
 Mutual Fund Account Opening
 Order Punching -
 Share Delivery Order
 Intraday Share Order
 Option Trading Order
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A STUDY OF STOCK EXCHANGE

INTRODUCTION :
Stock Exchange market is a vital component of a stock market. It facilitates the transaction between traders of
financial instruments and targeted buyers. A stock exchange in India adheres to a set of rules and regulations
directed by the Securities and Exchange Board of India or SEBI. The said authoritative body functions to
protect the interest of investors and aims to promote the stock market of India. A stock exchange is a
marketplace where you buy stocks, bonds, and other securities. It provides a platform for companies to sell
stocks, and for investors to trade those stocks between each other all within a regulated space that aims to
make everything as efficient and transparent as possible.
HISTORY OF STOCK EXCHANGES IN INDIA :
The origin of the Stock Exchanges in India can be traced back to the later half of 19th century. After the
American Civil War (1860-61) due to the share mania of the public, the number of brokers dealing in shares
increased. The brokers organized an informal association in Mumbai named “The Native Stock and Share
Brokers Association in 1875” and later evolved as Bombay stock exchange. Increased activity in trade and
commerce during the First World War and Second World War resulted in an increase in the stock trading. The
Growth of Stock Exchanges suffered a set after the end of World War. World wide depression affected them
most of the Stock Exchanges in the early stages had a speculative nature of working without technical strength.
After independence, government took keen interest to regulate the speculative nature of stock exchange
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working. In that direction, securities and Contract Regulation Act 1956 was passed, this gave powers to Central
Government to regulate the stock exchanges. Further to develop secondary markets in the country, stock
exchanges established at Mumbai, Chennai, Delhi, Hyderabad, Ahmedabad and Indore. The Bangalore Stock
Exchange was recognized in 1963. At present there are 23 Stock Exchanges. Till recent past, floor trading
took place in all Stock Exchanges. In the floor trading system, the trade takes place through open outcry system
during the official trading hours. Trading posts are assigned for different securities where by and sell activities
of securities took place. This system needs a face to face contact among the traders and restricts the trading
volume. The speed of the new information reflected on the prices was rather than the investors. The Setting
up of NSE and OTCEI (Over the counter exchange of India with the screen based trading facility resulted in
more and more Sock exchanges turning towards the computer based trading. BSE introduced the screen based
trading system in 1995, which known as BOLT (Bombay on – line Trading System). Madras Stock Exchange
introduced Automated Network Trading System (MANTRA) on October 7, 1996 Apart from Bombay Stock
Exchanges have introduced screen based trading.
Regulators of Securities Markets :
The responsibility for regulating the securities market is shared by the Securities and Exchange Board of India
(SEBI), the Reserve Bank of India (RBI), the Department of Economic Affairs (DEA) of the Ministry of
Finance and Ministry of Corporate Affairs (MCA).
Securities and Exchange Board of India (SEBI) :
The Securities and Exchange Board of India (SEBI), a statutory body appointed by an Act of Parliament (SEBI
Act, 1992), is the chief regulator of securities markets in India. SEBI functions under the Ministry of Finance.
The responsibility for regulating the securities market is shared by the Securities and Exchange Board of India
(SEBI), the Reserve Bank of India (RBI), the Department of Economic Affairs (DEA) of the Ministry of
Finance and Ministry of Corporate Affairs (MCA).
The main objective of SEBI is to facilitate growth and development of the capital markets and to ensure that
the interests of investors are protected. Some of the functions of SEBI have been explained in detail:
 SEBI has been assigned the powers of recognising and regulating the functions of stock exchanges. The
Securities Contracts Regulation Act, 1956 is administered by SEBI. This Act provides for the direct and
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indirect control of virtually all aspects of securities trading and the running of stock exchanges. The
requirements for granting recognition to a stock exchange include representation of the Central
Government on each of the stock exchange by such number of persons not exceeding three as the Central
Government may nominate on this behalf. Stock exchanges have to furnish periodic reports to the regulator
and submit bye‐laws for SEBI’s approval. Stock exchanges are required to send daily monitoring reports.
 SEBI has codified and notified regulations that cover all activities and intermediaries in the securities
markets.
 SEBI also oversees the functioning of primary markets. Eligibility norms and rules to be followed for a
public issue of securities are detailed in the SEBI (Issuance of Capital and Disclosures Requirements)
Regulation, 2009. The SEBI (ICDR) Regulation lays down general conditions for capital market issuances
like public and rights issuances, Institutional Placement Programme (IPP), Qualified Institutions
Placement (QIP) etc; eligibility requirements; general obligations of the issuer and intermediaries in public
and rights issuances; regulations governing preferential issues, qualified institutional placements and
bonus issues by listed companies; Issue of IDRs. SEBI (ICDR) also has detailed requirements pertaining
to disclosures and process requirements for capital market transactions by listed and unlisted companies
which are in the process of listing. The listing agreement that companies enter into with the stock exchange
has clauses for continuous and timely flow of relevant information to the investors, corporate governance
and investor protection.
 SEBI makes routine inspections of the intermediaries functioning in the securities markets to ensure that
they comply with prescribed standards. It can also order investigations into the operations of any of the
constituents of the securities market for activities such as price manipulation, artificial volume creation,
insider trading, violation of the takeover code or. The main objective of SEBI is to facilitate growth and
development of the capital markets and to ensure that the interests of investors are protected.
STOCK EXCHANGES IN INDIA
Indian stock market is one of the oldest and most robust markets among emerging economies. With the rapid
improvement in the exchange infrastructure and better investor protection by the market regulator (SEBI), the
trade volume is on the rise. The technological advancement such as trading via mobile apps, the traders and
trade volume has shot up recently. In this regard, National Stock Exchange (NSE) and Bombay Stock
Exchange (BSE) are well-known exchanges in the country.
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Bombay Stock Exchange (BSE)
 BSE Limited, also known as the Bombay Stock Exchange (BSE), is an Indian stock exchange which
is located on Dalal Street in Mumbai.
 Established in 1875 by cotton merchant Premchand Roychand.
 It is the oldest stock exchange in Asia, and also the tenth oldest in the world.
 The BSE is one of the world's largest stock exchanges by market capitalization.
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NATIONAL STOCK EXCHANGE (NSE)
 National Stock Exchange of India Limited (NSE) is one of the leading stock exchanges in India, based
in Mumbai.
 NSE is under the ownership of various financial institutions such as banks and insurance companies.
 It is the world's largest derivatives exchange by number of contracts traded and the third largest in cash
equities by number of trades for the calendar year 2022.
 It is one of the largest stock exchanges in the world by market capitalization.
 NSE's flagship index, the NIFTY 50, a 50 stock index is used extensively by investors in India and
around the world as a barometer of the Indian capital market. The NIFTY 50 index was launched in
1996 by NSE.
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MARKET PARTICIPANT (Intermediaries)

Intermediaries in the securities markets are agents responsible for coordinating between investors (lenders)
and issuers (borrowers), and organising the transfer of funds and securities between them. Without the services
provided by intermediaries, it would be quite difficult for investors and issuers to locate each other and carry
out transactions.
According to the SEBI (Intermediaries) Regulations, 2008, following are the intermediaries of securities
markets:
 Asset management companies and portfolio managers - are investment specialists who offer
their services in selecting and managing a portfolio of securities. ) Asset management companies are
permitted to offer securities (called units) that represent participation in a pool of money, which is used
to create the portfolio. Portfolio managers do not offer any security and are not permitted to pool the
money collected from investors. They act on behalf of the investor in creating and managing a portfolio.
Both asset managers and portfolio managers charge the investor a fee for their services, and may engage
other security market intermediaries such as brokers, registrars, and custodians in conducting their
functions.
 Merchant bankers- Also called as issue managers, investment bankers, or lead managers, engage in
the business of issue management either by making arrangements regarding the selling, buying or
subscribing to securities or acting as manager, consultant, adviser or corporate advisory service in
relation to such issue management. They evaluate the capital needs, structure an appropriate instrument,
get involved in pricing the instrument, and manage the entire issue process until the securities are issued
and listed on a stock exchange. They engage other intermediaries such as registrars, brokers, bankers,
underwriters and credit rating agencies in managing the issue process.
 Underwriters- Are primary market specialists who promise to pick up that portion of an offer of
securities which may not be bought by investors. They serve an important function in the primary market,
providing the issuer the comfort that if the securities being offered do not elicit the desired demand, the
underwriters will step in and buy the securities. The specialist underwriters in the government bond
market are called primary dealers.
 Stockbrokers- Are registered trading members of stock exchanges. They facilitate new issuance of
securities to investors. They put through the buy and sell transactions of investors on stock exchanges.
All secondary market transactions on stock exchanges have to be conducted through registered brokers.
 Sub‐brokers -Help in reaching the services of brokers to a larger number of investors. Several brokers
provide various services such as research, analysis and recommendations about securities to buy and
sell, to their investors. Brokers may also enable screen‐based electronic trading of securities for their
investors, or support investor orders over phone. Brokers earn a commission for their services.
 Clearing members and trading members- Are members of the stock exchange where securities are
listed and traded. Trading members put through the trades for buying and selling, either on their own
behalf, or on behalf of customers. Clearing members receive funds and securities for completed
transactions and settle the payment of money and delivery of securities.
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 Bankers to an issue- Are selected bankers who are appointed during a new issue of securities, to
collect application forms and money from investors who are interested in buying the securities being
offered. They report the collections to the lead managers, send the applications and investor details to
the registrars and transfer the funds mobilised to the bank accounts of the issuer.
 Registrars & Share Transfer Agents- Maintain the record of investors for the issuer. Every time the
owner of a security sells it to another, the records maintained by the issuer needs to incorporate this
change. Only then the benefits such as dividends and interest will flow to the new owners. In the modern
securities markets, the securities are held in a dematerialised form in the depository. The changes to
beneficiary names are made automatically when a security is sold and delivered to the buyer. Investor
records are maintained for legal purposes such as determining the first holder and the joint holders of
the security, their address, bank account details and signatures, and any nominations they may have made
about who should be receiving the benefits from a security after their death.
 Depository participants- Enable investors to hold and transact in securities in the dematerialised
form. Demat securities are held by depositories, where they are admitted for dematerialisation after the
issuer applies to the depository and pays a fee. Depository participants (DPs) open investor accounts, in
which they hold the securities that they have bought in dematerialized form. Brokers and banks offer DP
services to investors. DPs help investors receive and deliver securities when they trade in them. While
the investor‐level accounts in securities are held and maintained by the DP, the company level accounts
of securities issued is held and maintained by the depository. In other words, DPs act as agents of the
Depositories.
 Custodians- Typically work with institutional investors, holding securities and bank accounts on their
behalf. They manage the transactions pertaining to delivery of securities and money after a trade is made
through the broker, and also keeps the accounts of securities and money. They may also account for
expenses and value the portfolio of institutional investors. Custodians are usually large banks.
 Trustees- Are appointed when the beneficiaries may not be able to directly supervise if the money they
have invested is being managed in their best interest. Mutual fund trustees are appointed to supervise the
asset managers; debenture trustees are appointed to ensure that the lenders interests are protected.
 Credit rating agencies- Evaluate a debt security to provide a professional opinion about the ability of
the issuer to meet the obligations for payment of interest and return of principal as indicated in the
security. They use rating symbols to rank debt issues, which enable investors to assess the default risk in
a security.
 Investment advisers- And distributors work with investors to help them make a choice of securities
that they can buy based on an assessment of their needs, time horizon, return expectations and their
ability to bear risk. They also create financial plans for investors, where they define the goals for which
investors need to save money and propose appropriate investment strategies to meet the defined goals.
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Equity Analysis and Valuation

There are two parts to evaluating a stock for investment:
 Fundamental Analysis
 Technical Analysis
There are two approaches to such evaluation:
1. Fundamental analysis is a study of the financial statements and information pertaining to a stock, to
estimate the future potential. Fundamentals of a stock refer to the information that is relevant to estimate the
earning potential and therefore the intrinsic value.
2. Technical analysis involves studying the price and volume patterns to understand how buyers and sellers
are acting on existing price information. Technical analysis integrates the historical price and volume data of
traded stocks into price charts, points of support and resistance and price trends. Technical indicators are
constructed with price data and used to judge the buying and selling interest in the markets. Technical analysis
views price as an aggregate indicator of all information about a stock.
FINANCIAL RATIOS IN SHARE MARKET –

1. Price to earnings (P/E) Ratio :
As the name suggests, a P/E ratio is the ratio of the current share price to the earning of the company per
share. This ratio can tell you if the company is undervalued or overvalued in the market.
Let’s say that a company has an overall earning of Rs.1000. Also, it has 100 shares trading in the market.
Therefore, its ‘earning per share’ is Rs.10.
Further, let’s say that the shares of the company are trading at Rs.100 per share.
Hence, we have P/E Ratio = 100/10 = 10
In the simplest terms, this means that you are paying Rs.10 for getting Rs.1 from the company’s earnings.
Hence, it is easy to deduce that if a company has a higher P/E ratio, it is that much overvalued.
2. Return on Equity (RoE) Ratio:
As the name suggests, the RoE Ratio is a measure of the rate of return on the stock of a company. In other
words, it tells investors how good the company is in generating returns on stock investments.
Mathematically, RoE = Net Income/Total Shareholder’s Equity
This is an important ratio because it shows the company’s ability to turn equity investments into profits.
Let’s say that you are the promoter of a company and have contributed Rs.100 in equity and the total
equity of the company is Rs.100.
Using this equity if the company generates an income of Rs.20, then the RoE is 20%. Imagine another
company with the same total equity but generating an income of Rs.40 – its RoE ratio will be 40%. The
company that generates better RoE is considered better.
3. Price-to-Book (P/B) Ratio:
The price-to-book ratio is a simple comparison of a company’s market value (market capitalization) to its
book value. It compares the company’s stock price to its book value per share.
Before we understand the P/B ratio, let’s look at what book value means:
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The simplest way to understand book value is to think that if a company stops doing all business, pays off
its loans, and sells its assets, what will be the value of the company.
4. Dividend Yield or the Dividend-Price ratio:
Dividend yield or the dividend-price ratio is the amount of money or dividend that a company pays its
shareholders over the course of a year divided by its current stock price. It is an indicator of the returns
you can expect on your investment.
Let’s say that you purchased a stock at the market price of Rs.100. A year later, the stock price is still
Rs.100. Is this a good investment?
A quick look at the appreciation of share price says that it is not – you got a zero percent return! However,
have you considered the dividend before making this decision?
What is dividend?
Let’s say that the company makes a profit of Rs.1000. Out of this, it decides to keep Rs.600 for business
expansion and distribute Rs.400 among its shareholders. Assuming that there were 100 shares in the
market, each shareholder will receive a dividend of Rs.4.
This becomes the return on investment for the shareholder. Even if the share price did not appreciate, the
shareholder earned a return on his investment.
Dividend yield is an important ratio because there are many stocks that do not appreciate in price but offer
handsome dividends. If the dividend yield is higher, the investor has a better chance of receiving higher
dividends for the same investment as compared to a stock with a low dividend yield.
5. Debt-to-Equity (D/E) Ratio:
As the name suggests, this ratio gives you an overview of the debts and equity of the company. It is
calculated by dividing the company’s total liabilities (debts) by its total shareholder equity. It can give you
an indication of how much is the company running on loans versus owned funds.
There is no ideal D/E ratio as it can vary with industries and sectors.
Usually, if a company has a lot of debt, then it is assumed that the company will find it difficult to pay it
back. Also, since debt attracts interest, it will directly impact the company’s profit and loss statement and
negatively impact its net income leading to a drop in the cash flow.
The D/E ratio can help you determine if the company has a lot of debt or not. A high D/E ratio means
higher debt and vice-versa.
However, it is important to remember that high debt does not necessarily mean a bad thing. If the company
factors in the interest and repays its debts on time while utilizing the funds constructively, it can experience
growth.
Hence, it is important to treat this ratio as a mere indicator of the amount of debt a company as with respect
to its equity.
6. Market Capitalization:
Market capitalization refers to the total dollar market value of a company's outstanding shares of stock.
The investment community uses this figure to determine a company's size instead of sales or total asset
figures. In an acquisition, the market cap is used to determine whether a takeover candidate represents a
good value or not to the acquirer.
 Market capitalization refers to how much a company is worth as determined by the stock market.
It is defined as the total market value of all outstanding shares.
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 To calculate a company's market cap, multiply the number of outstanding shares by the current
market value of one share.
7. Enterprise Value (EV):
Enterprise value (EV) measures a company's total value, often used as a more comprehensive alternative
to market capitalization. EV includes in its calculation the market capitalization of a company but also
short-term and longterm debt and any cash or cash equivalents on the company's balance sheet.
 Enterprise value (EV) measures a company's total value, often used as a more comprehensive alternative
to equity market capitalization.
 Enterprise value includes in its calculation the market capitalization of a company but also short-term and
long-term debt and any cash on the company's balance sheet.
 Enterprise value is used as the basis for many financial ratios that measure a company's performance.
Components of Enterprise Value (EV) Enterprise value uses figures from a company's financial statements
and current market prices.
 Components of Enterprise Value (EV) Enterprise value uses figures from a company's financial statements
and current market prices. The components that make up EV are:
 Market cap: The total value of a company's outstanding common and preferred shares
 Debt: The sum of long-term and short-term debt
 Unfunded pension liabilities (if any): The amount of capital lacking to cover pension payouts or the amount
a company needs to set aside to make pension payments in an unfunded plan. Can be added market cap if
this value is present.
 Minority interest: The equity value of a subsidiary with less than 50% ownership. It can be added to market
cap for EV calculation.
 Cash and cash equivalents: The total amount of cash, certificates of deposit, drafts, money orders,
commercial paper, marketable securities, money market funds, short-term government bonds, or Treasury
bills a company possesses.
 Simple formula: Enterprise Value = Market Cap + Outstanding Debt - Cash & Equivalents
BANK FINANCIAL RATIOS-

 CASA ratio indicates how much of a bank's total deposits are in both current and savings accounts.
 NPA Ratio gives us an idea of how much of total advances are not recoverable.
 Cost to liabilities ratio indicates how much money spend on every deposits like FD , RD, Savings etc.
 Advances growth ratio (growth of loan book than last year percentage form. Bank advances grew at
9.6 per cent in FY 2021-22; 5.6 per cent in FY 2020-21 and 6.1 per cent in FY 2019- 20. Bank credit grew
by 15 per cent year-on-year in the fiscal ended March 2023 .
 Capital Adequacy Ratio (CAR) is the ratio of a bank's capital in relation to its risk weighted assets
and current liabilities.
TECHNICAL ANALYSIS
Technical analysis is a method of evaluating securities by analyzing market data such as charts, trends, and
statistical indicators. The primary objective of technical analysis is to identify patterns and trends that can
provide insight into the future direction of a stock or market.
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Chart study –
Stock chart patterns often signal transitions between rising and falling trends. A price pattern is a recognizable
configuration of price movement identified using a series of trendlines and/or curves.
When a price pattern signals a change in trend direction, it is known as a reversal pattern; a continuation
pattern occurs when the trend continues in its existing direction following a brief pause. There are many
patterns used by traders here is how patterns are made and some of the most popular ones.
TYPES OF CHART PATTERN

1. LINE CHART
2. BAR CHART
3. HIKEIN ASHI
4. CANDLESTICK PATTERN
HAMMER CANDLESTICK PATTERN
ENGULFING CANDLESTICK PATTERN
DOUJI PATTERN
MARUBOZU PATTERN
1.Line chart
One of the most basic charts used in technical analysis, the line chart is used to depict the trends in the price
of a particular stock or index over a certain period of time. This kind of chart is very useful when it comes to
determining the overall trend of a stock. With one look at a line chart, you can identify the price or volume
movements of that stock.
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2.Bar chart
A bar chart is more useful to a trader involved in technical analysis. It depicts these four price points of a stock
for a particular period of time easily.
o The opening price

o The lowest price
o The highest price
o The closing price
A bar chart is generally depicted as a thin central vertical line with two horizontal lines emerging from it, one
on the left and one on the right.
Another point to note when reading through a bar chart is that the length of the bar changes according to the
price range. The difference between the lowest price and the highest price of the stock is the price range.
Therefore, the longer the line, the larger the range.
3.Heikin Ashi Chart
Another invention from Japan, the Heikin-Ashi chart resembles your regular candlestick chart. The words
Heikin Ashi translate to ‘average bar.’ That is because each bar in the Heikin-Ashi chart averages out the
prices to create the candlestick that you see on the chart.
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4.Candlestick Pattern
The candlestick charts, which first originated in Japan, are what traders involved in technical analysis
primarily use. Owing to these Japanese roots, many candlestick chart patterns bear Japanese names like doji
and marubozu.
The structure of a candlestick is quite similar to that of a bar chart. The only difference is that the candlestick
uses a rectangular body to depict the opening and closing prices of a stock instead of the two horizontal
protrusions.
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Hammer candlestick pattern
 A hammer is a price pattern in candlestick charting that occurs when a security trades significantly
lower than its opening, but rallies within the period to close near the opening price.
 This pattern forms a hammer-shaped candlestick, in which the lower shadow is at least twice the size
of the real body.
 The body of the candlestick represents the difference between the opening and closing prices, while
the shadow shows the high and low prices for the period.
 Hammer candlesticks typically occur after a price decline. They have a small real body and a long
lower shadow.
 The hammer candlestick occurs when sellers enter the market during a price decline. By the time of
market close, buyers absorb selling pressure and push the market price near the opening price.
 The close can be above or below the opening price, although the close should be near the open for the
real body of the candlestick to remain small. The lower shadow should be at least two times the height
of the real body. Hammer candlesticks indicate a potential price reversal to the upside. The price must
start moving up following the hammer; this is called confirmation.
Engulfing pattern candlestick

Bullish Engulfing Pattern
 A bullish engulfing pattern is a white candlestick that closes higher than the previous day's opening
after opening lower than the previous day's close.
 It can be identified when a small black candlestick, showing a bearish trend, is followed the next day
by a large white candlestick, showing a bullish trend, the body of which completely overlaps or engulfs
the body of the previous day’s candlestick.
 A bullish engulfing pattern may be contrasted with a bearish engulfing pattern.
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 Investors should look not only to the two candlesticks which form the bullish engulfing pattern but
also to the preceding candlesticks.
Bearish Engulfing pattern
 A bearish engulfing pattern is a technical chart pattern that signals lower prices to come. The pattern
consists of an up (white or green) candlestick followed by a large down (black or red) candlestick that
eclipses or "engulfs" the smaller up candle.
 The pattern can be important because it shows sellers have overtaken the buyers and are pushing the
price more aggressively down (down candle) than the buyers were able to push it up (up candle).
 A bearish engulfing pattern can occur anywhere, but it is more significant if it occurs after a price
advance. This could be an uptrend or a pullback to the upside with a larger downtrend.
 Ideally, both candles are of substantial size relative to the price bars around them. Two very small bars
may create an engulfing pattern, but it is far less significant than if both candles are large.
 The real body the difference between the open and close price of the candlesticks is what matters. The
real body of the down candle must engulf the up candle.
 The pattern has far less significance in choppy markets.
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Doji pattern
 A doji (dо̄ji) is a name for a trading session in which a security has open and close levels that are
virtually equal, as represented by a candle shape on a chart.
 Based on this shape, technical analysts attempt to make assumptions about price behavior.
 Doji candlesticks can look like a cross, inverted cross, or plus sign.
 Doji formations come in three major types: Four price Doji, Perfect Doji, Long legged Doji,
Gravestone Doji.
Four Price Doji

Four-Price Doji is a basic candle that has all four prices equal (i.e. open, close, low and high). Usually this
means that we are dealing with a very small number of transactions, and in many cases, with a single
transaction. Therefore, its importance is very limited.
Perfect Doji
The perfect Doji has the same open price and close price, however, something must be considered.
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Long legged Doji
The long-legged doji is a candlestick that consists of long upper and lower shadows and has approximately
the same opening and closing price, resulting in a small real body.
Marubozu Candlestick Pattern
 A Marubozo is a type of candlestick charting formation that indicates a security's price did not trade
beyond the range of the opening and closing price.
 It is a candlestick pattern that lacks a shadow.
 A Marubozo is a long-bodied candlestick with no shadow, from the Japanese word meaning "close-
cropped".
 Candlestick charts look at the opening and closing price on a single day and are used by technical
traders.
 A candlestick with no shadows is regarded as a strong signal of conviction by either buyers or sellers,
depending on whether the direction of the candle is up or down.
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DERIVATIVE MARKET
 A derivative refers to a financial product whose value is derived from another. A derivative is always
created with reference to the other product, also called the underlying.
 A derivative is a risk management tool used commonly in transactions where there is risk due to an
unknown future value.
 For example, a buyer of gold faces the risk that gold prices may not be stable. When one needs to buy
gold on a day far into the future, the price may be higher than today. The fluctuating price of gold
represents risk. If it were possible to fix today, the price for a transaction on a later date in future, such
risks can be managed better.
 A derivative market deals with the financial value of such risky outcomes.
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 A derivative product can be structured to enable a pay‐off and make good some or all of the losses if
gold prices go up as feared. Similarly many other financial assets and physical commodities can be
hedged by the use of derivatives.
Types of Derivative Products
 Forward
 Future
 Option
 Swaps
 Forwards
Forwards are over the counter (OTC) derivatives that enable buying or selling an underlying on a future date,
at an agreed upon price. The terms of a forward contract are as agreed between counterparties.
Example: A farmer agrees to sell his produce of wheat to a miller, 6 months later when his crop is ready, at a
price that both counterparties agree today.
This is a forward contract since it will be completed later (forward). It is also an OTC contract. It can be settled
in cash or result in actual delivery of wheat. The settlement terms such as quantity and quality of wheat to be
delivered, the price and payment terms are as decided by the counterparties. A forward contract is a non‐
standard futures contract.
It carries counterparty risk if either one fails to honor their side of the contract. It is therefore always entered
into between known parties, and leans on informal protection mechanisms to ensure that the contract is
honored.
The concentration of commodity futures trading in certain geographical locations, or between a few
communities is to ensure such informal protection against counterparty risks. The forward markets in
commodities in several parts of India are based on mutual trust and are functional despite the risks involved.
 Futures
Futures are exchange‐traded forwards. A future is a contract for buying or selling a specific underlying, on a
future date, at a price specified today, and entered into through a formal mechanism on an exchange. The
terms of the contract are specified by the exchange.
Example: Wheat futures traded on the Multi‐commodity Exchange (MCX) of India has the following
specifications (among others):
Trading unit: 10MT Minimum order size: 500MT
Maximum position per individual: 5000MT
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Quality: Standard Mill Quality as specified by the exchange
Contract begin date: 21st of the month
Delivery options: Physical delivery only
Delivery date: 20th of the month
Delivery centre: Exchange approved warehouses
Futures are thus forward contracts defined and traded on an exchange. Another important feature of an
exchange‐traded futures contract is the clearing‐house. The counterparty for each transaction is the clearing‐
house or a clearing corporation. Buyers and sellers are required to maintain margins with the clearing‐
house/clearing corporation, to ensure that they honor their side of the transaction. The counterparty risks in a
forward contract are eliminated using the clearing‐house mechanism.
 Options
An Option is a contract that gives the right, but not an obligation, to buy or sell the underlying asset on or
before a stated date/day, at a stated price, for a price. The party taking a long position i.e. buying the option is
called buyer/ holder of the option and the party taking a short position i.e. selling the option is called the seller/
writer of the option. The option buyer has the right but no obligation with regards to buying or selling the
underlying asset, while the option writer has the obligation in the contract. Therefore, option buyer/ holder
will exercise his option only when the situation is favourable to him, but, when he decides to exercise, option
writer would be legally bound to honour the contract. Options may be categorized into two main types:‐
1. Call Options
2. Put Options Option,
which gives buyer a right to buy the underlying asset, is called Call option and the option which gives buyer
a right to sell the underlying asset, is called Put option.
 Swaps
A swap is a contract in which two parties agree to a specified exchange on a future date. Swaps are common
in interest rate and currency markets.
Example: A borrower has to pay a quarterly interest rate defined as the Treasury bill rate on that date, plus a
spread. This floating rate interest payment means that the actual obligation of the borrower will depend on
what the Treasury bill rate would be on the date of settlement. The borrower however prefers to pay a fixed
rate of interest.
He can use the interest rate swap markets to get into the following swap arrangement:
 Pay a fixed rate to the swap dealer every quarter

 Receive T‐bill plus spread from the swap dealer every quarter
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The swap in this contract is that one party pays a fixed rate to the other, and receives a floating rate in return.
The principal amount on which the interest will be computed is agreed upon between counterparties.
Only the interest rate on this amount is exchanged on each settlement date (every quarter) between
counterparties. The borrower will use the floating rate that he has received from the swap market and pay the
floating rate dues on his borrowing. These two legs are thus cancelled, and his net obligation is the payment
of a fixed interest rate to the swap dealer. By using the swap market, the borrower has converted his floating
rate borrowing into a fixed rate obligation.
Swaps are very common in currency and interest rate markets. Though swap transactions are OTC, they are
governed by rules and regulations accepted by swap dealer associations.
NSE: Index futures and options on
 Nifty 50 Index
 Nifty IT Index
 Nifty Bank Index
 Nifty Midcap 50 Index
 Nifty Infrastructure Index
 Nifty PSE Index
 India VIX
BSE: Index futures and options on
 S&P BSE Sensitive Index (Sensex)

 S&P BSE 100 Index
 S&P BSE TECK Index
 S&P BSE Bankex
 S&P BSE Oil & Gas Index
 S&P BSE Sensex Next 50
Expiry Date for contract
 The contracts expire on the last Thursday of every calendar month. At any time there would be three
contracts available to trade
 a. The NEAR month contract expiring on the last Thursday of the current month.
 b. The NEXT month contract expiring on the last Thursday of the next month.
 c. The FAR month contract expiring on the last Thursday of the third month. If the Thursday of a month
is a trading holiday for the exchange where the contract is traded, it expires on the previous trading day.
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 If the Thursday of a month is a trading holiday for the exchange where the contract is traded, it expires on
the previous trading day.
MUTUAL FUND
Meaning and Description of a Mutual Fund
Investors buy equity shares, debentures, jewellery and gold coins, residential and commercial property with
their savings. This is the direct way of investing where assets bought are held directly in their names. Direct
investments impose on the investors, the following responsibilities of selecting and managing the investments:
 Selection: Is it the right stock or bond or property to buy?
 Price: Is it the correct price given for the underlying stock?
 Timing: Is the time right to buy the investment?
 Weighting: How much of each type to buy? How should a portfolio be created?
 Evaluation: Is there a reason to think that the value of the asset will increase or decrease?
 Exit: Is it the right time to sell the investment? Will it be possible to sell it easily?
 Operations: Are the operational requirements, such as trading and depository accounts, safe deposit
facilities, legal and regulatory compliances in place?
Not all investors may have the ability to do all that is required to make direct investments. Some may be
unwilling to take on all the activities associated with direct investing; some may find the cost and time spent
on direct investing avoidable.
Investors, who like to invest in the securities markets and other assets but like to engage someone else to create
and manage their portfolio, choose mutual funds. Mutual funds invest and manage the investors’ money by
selecting the investments after evaluating their prospects, price and performance. Mutual funds take up these
tasks for a fee that the investor pays.
Features of Mutual Fund Products
There are several mutual fund products in the market. The following are the features that distinguish one
mutual fund product from another:
 Asset allocation: Proportions in which the fund will invest in securities such as equity, debt, gold, real
estate exclusively or in a combination.
 Investment objective: The focus in creating and managing the portfolio – growth and capital appreciation,
generation of regular income or a combination of both.
 Costs and fees: The costs to be borne by the investor on an annual basis for the management of the fund
and charges while leaving the fund.
 Operational details: The terms for subscription, redemption and ongoing transactions in the fund.
Regulator of Mutual Funds
A mutual fund is authorised by regulations to pool funds from investors and invest the funds on their behalf.
The Securities and Exchange Board of India (SEBI) is the primary regulator of mutual funds in India. Only
entities registered with SEBI under the SEBI (Mutual Fund) Regulations, 1996 can conduct the business of a
mutual fund. The regulatory provisions are designed to protect the interests of the investors who invest in a
fund.
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Association of Mutual Funds of India

The Association of Mutual Funds in India (AMFI) is committed to advancing and maintaining mutual sector
standards and promoting the Indian Mutual Fund Industry along moral and ethical lines. It aids in defending
both the interests of asset management firms and Indian investors.
Terms and Concepts Related to Mutual Funds
Net Asset Value (NAV)

The NAV is the current value of a mutual fund unit. This will depend upon the current MTM value of the
securities held in the portfolio of the fund and any income earned such as dividend and interest. From this
value, the costs and expenses charged for managing the fund are deducted. The value remaining is called the
net assets of the fund.
Consider the example we used earlier:
 There were 6000 units of Rs.10 each issued.
 The current market value of the portfolio was Rs. 72,000.
 Assume dividend income of Rs.3000 and expenses of Rs.600.
 The net assets are calculated by adding income earned and deducting expenses incurred from the current
market value of the portfolio. The net asset is Rs.74, 400.
 The number of units issued were 6000, so the net asset value per unit is 74,400/6000 = Rs.12.40
 The NAV of the fund has moved up from Rs.10 per unit to Rs.12.40 per unit. The NAV of a fund is
calculated every business day so that investors know the value of their investments. Investors buy and sell
units at a price based on NAV.
Loads
Mutual funds may impose a charge on the investors at the time of exiting from a fund called the exit load.
Currently, entry loads are prohibited by SEBI. Mutual funds charge an exit load linked to the period of holding
of the investor. It is calculated as a percentage of the NAV and reduced from the NAV to arrive at the price
that the investor will get on exiting from the investment.
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Open‐Ended Funds
 An open‐ended mutual fund does not have a fixed maturity date.
 Investors can buy additional units from the fund at any time at the current NAV‐linked price.
 Existing investors can sell their units back to the fund at current NAV‐linked prices.
 An open‐ended fund may also be listed on the stock exchanges for trading.
Closed‐End Funds
 A closed‐end mutual fund issues units to the investors only when the scheme is launched i.e. during its
new fund offer (NFO) period.
 The fund is closed for subscription and additional units are not issued after the NFO period by the fund.
 These funds have a fixed maturity date when the fund buys back the units from the investors at the
prevailing NAV‐linked price and the fund is wound‐up.
 The units of closed‐end schemes are mandatorily listed on stock exchanges where investors can buy and
sell among themselves. The mutual fund is not involved in these transactions
Interval Funds
 Units are allotted to investors when the scheme is launched.
 The fund specifies transaction periods, such as three days every quarter, when investors can buy units and
sell units directly with the fund.
 The funds are listed on the stock exchanges where the investors can buy and sell the units among
themselves.
Mutual Fund Asset Class

Depending on the assets they invest in, mutual funds are categorized under:
 Equity funds:
Equity funds invest money in company shares, and their returns depend on how the stock market performs.
Though these funds can give high returns, they are also considered risky. They can be categorized further
based on their features, like Large-Cap Funds, Mid-Cap Funds, Small-Cap Funds, Focused Funds, or ELSS,
among others. Invest in equity funds if you have a long-term horizon and a high-risk appetite.
 Debt funds:
Debt funds invest money into fixed-income securities such as corporate bonds, government securities, and
treasury bills. Debt funds can offer stability and a regular income with relatively minimum risk. These schemes
can be split further into categories based on duration, like low-duration funds, liquid funds, overnight funds,
credit risk funds, gilt funds, among others.
 Hybrid funds:
Hybrid funds invest in both debt and equity instruments so as to balance out debt and equity. The ratio of
investment can be fixed or varied, depending on the fund house. The broad types of hybrid funds are balanced
or aggressive funds. There are multi asset allocation funds which invest in at least 3 asset classes.
 Solution-oriented funds:
These mutual fund schemes are for specific goals like building funds for children’s education or marriage, or
for your own retirement. They come with a lock-in period of at least five years.
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Types of Mutual Funds based on investment objective
 Growth funds: Under these schemes, money is invested primarily in equity stocks with the purpose of
providing capital appreciation. They are considered to be risky funds ideal for investors with a long-term
investment timeline. Since they are risky funds they are also ideal for those who are looking for higher
returns on their investments.
 Income funds: Under these schemes, money is invested primarily in fixed-income instruments e.g. bonds,
debentures etc. with the purpose of providing capital protection and regular income to investors.
 Liquid funds: Under these schemes, money is invested primarily in short-term or very short-term
instruments e.g. T-Bills, CPs etc. with the purpose of providing liquidity. They are considered to be low
on risk with moderate returns and are ideal for investors with short-term investment timelines.
 Tax-Saving Funds (ELSS): These are funds that invest primarily in equity shares. Investments made in
these funds qualify for deductions under the Income Tax Act. They are considered high on risk but also
offer high returns if the fund performs well.
 Capital Protection Funds: These are funds where funds are are split between investment in fixed income
instruments and equity markets. This is done to ensure protection of the principal that has been invested.
 Fixed Maturity Funds: Fixed maturity funds are those in which the assets are invested in debt and money
market instruments where the maturity date is either the same as that of the fund or earlier than it.
 Pension Funds: Pension funds are mutual funds that are invested in with a really long term goal in mind.
They are primarily meant to provide regular returns around the time that the investor is ready to retire. The
investments in such a fund may be split between equities and debt markets where equities act as the risky
part of the investment providing higher return and debt markets balance the risk and provide lower but
steady returns. The returns from these funds can be taken in lump sums, as a pension or a combination of
the two.
 Sector Funds: These are funds that invest in a particular sector of the market e.g. Infrastructure funds invest
only in those instruments or companies that relate to the infrastructure sector. Returns are tied to the
performance of the chosen sector. The risk involved in these schemes depends on the nature of the sector.
FINANCIAL PLANNING AND SECURITIES MARKETS

Financial Planning is the exercise of ensuring that a household has adequate income or resources to meet
current and future expenses and needs. The income is primarily derived from two sources:
 Income from profession or business or employment undertaken.

 Income and earnings from assets or investments such as rent from property, interest from bank deposits,
dividends from shares and mutual funds, interest earned on debentures.
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Steps in Financial Planning

Financial planning is the process of managing personal finances so that the current and long‐ term financial
needs are met in the best possible way. It involves looking at the current income and expenses, identifying
demand for money for meeting the goals and making a saving and investment plan that considers the current
and future income, expenses, assets and liabilities. Financial planning thus involves the following six steps:
1. Establish and define the client‐planner relationship
2. Gather client data, including goals
3. Analyze and evaluate financial status
4. Develop and present financial planning recommendations
5. Implement the financial planning recommendations
6. Monitor the financial planning recommendations
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Contribution to the host organization

This summer internship programme was of 45 days at Sm Money Mantra. During these 45 days I learned a
lot more of things in finance, especially stock market. At time of online application they mentioned that,
selected interns will work on following during the internship:
Following are the things I did during my internship:

 Aadhar Pan Link Status
 KYC Checking
 Demat Account Opening
 Mutual Fund Account Opening
 Order Punching -
 Share Delivery Order
 Intraday Share Order
 Option Trading Order
Duties of Securities and Financial Services Interns at Sm Money Mantra –

 Contact prospective clients to present information and explain available services
 Offer advice on the purchase or sale of particular securities
 Monitor financial markets and the performance of individual securities
 Analyse company finances to provide recommendations for public offerings, mergers, and acquisitions
 Evaluate cost and revenue of agreements Securities and financial services interns deal with a wide
range of products and clients.
Achievements:-
 Analytical skills: To judge the profitability of potential deals, securities, commodities, and financial
services interns must have strong analytical skills. This includes computer programming skills which
they use to analyse financial products.
 Customer-service skills: Securities, commodities, and financial services interns must be persuasive
and make clients feel comfortable with the agent’s recommendations. Also it becomes very important
to handle the customers when a mistake has been made on our part for example while placing the order
for buying the stock at a price of 100 if by mistake we purchase the stock at 101 or 102 the client can
get angry in such situation we were thought to remain calm and make sure that we don’t lose the
customer because as it said that the customer is god be it in any business.
 Decision making skills: Investment banking traders must make split-second decisions, with large
sums of money at stake.
 Detail oriented: Investment bankers must pay close attention to the details of initial public offerings
and mergers and acquisitions because small changes can have large consequences.
 Initiative: Securities and financial services interns must create their own client base by making “cold”
sales calls to people to whom they have not been referred and to people not expecting the call. Although
it is difficult at first to call random people to sell the products and services it becomes a routine after a
time as we get used to it.
 Math skills: Securities and financial services interns need to be familiar with mathematical tools,
including investment formulas. Also they need to be quick with calculations as being a part of finance
team you have to be good with numbers.
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CONCLUSION
The comprehensive study of on “online trading system“ at SM Money Mantra has been an enlightening
experience stressing on the position aspects on security trading. Dematerialization of shares and online trading
has done in whole lot of good to the issuer, investor, companies and country. The Depository system has
reduced the time lag in delivering and settlement of securities but also supported the cause of providing more
liquidity to the security holder, the need for setting up of a depository, paper less trading through online trading
system and settlement became in evitable and unavoidable for the smooth and efficient functioning of the
capital market. This system has proven its worthy ness by increasing in the settlement will be done with in the
day in future is in itself an indication of how great a boon in this system of Online trading.
E-brokerages provide convenience, encourage increased investor participation and lead to lower up front costs.
In the long run, they will likely reflect increased market efficiency as well. In short run, however, there are a
number of issues related to transparency, investor’s misplaced trust, and poorly aligned incentives between e-
brokerages and markets, that may impede true market efficiency.
For efficiency to move beyond the user interface and into the trading process, consumers need a transparent
window to observe the actual flow of orders, the time of execution and the commission structure are various
points in the trading process. In this regard, institutional rules, regulations and monitoring functions play a
significant role in promoting efficiency and transparency along the value chain in electronic markets. Our
analysis confirms that in the context of online stock markets, the need for such intervention and oversight it
particularly strong.
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APPENDICES
1. QUESTIONNAIRE
1. How would you rate your knowledge and understanding of the share market in India?
a. Very Poor
b. Poor
c. Average
d. Good
e. Excellent
2. How frequently do you participate in the share market?

a. Daily
b. Weekly
c. Monthly
d. Rarely
e. Never
3. What is your primary source of information and research on the share market?
a. Financial news websites
b. Stockbroker/advisor
c. Social media platforms
d. Business newspapers/magazines
e. Other (please specify)
4. How do you determine which companies to invest in?

a. Fundamental analysis (company's financial performance)
b. Technical analysis (charts and patterns)
c. Expert recommendations
d. Personal research
5. What factors do you consider before making an investment decision in the share market?
a. Company's financial performance
b. Industry trends
c. Political and economic conditions
d. Regulatory changes
e. Risk tolerance
6. Have you ever faced any challenges or difficulties while investing in the share market? If yes, please
elaborate.
7. What are your short-term and long-term investment goals in the share market?
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8. On average, how much time do you spend researching and analyzing before making an investment
decision?
a. Less than 1 hour
b. 1-2 hours
c. 2-4 hours
d. 4-6 hours
e. More than 6 hours
9. How do you manage risks in your share market investments?

a. Diversification across different companies/sectors
b. Setting stop-loss orders
c. Regular monitoring and review of investments
d. Seeking professional advice
10. How satisfied are you with your investments in the share market?
a. Very Unsatisfied
b. Unsatisfied
c. Neutral
d. Satisfied
e. Very Satisfied
11. Have you ever made any significant gains or losses in the share market? If yes, please share your
experience.
12. How do you stay up to date with the latest market trends and news?
a. Online financial news portals
b. TV news channels
c. Financial newsletters
d. Mobile applications
13. What are the main reasons you choose to invest in the share market?
a. Capital appreciation
b. Dividend income
c. Portfolio diversification
d. Long-term wealth creation
14. Are you familiar with the regulatory bodies governing the share market in India, such as the Securities
and Exchange Board of India (SEBI)?
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a. Yes
b. No
15. Do you have any suggestions or improvements for the share market in India?
16. Would you recommend investing in the share market to others? Why or why not?
17. How important is it for you to stay updated with the latest market trends and news?
a. Very important
b. Important
c. Neutral
d. Not important
e. Not at all important
18. Are you willing to take risks in the share market for higher potential returns?
a. Yes
b. No
c. It depends on the situation
19. Do you believe that the share market is a safe and reliable investment option?
a. Yes
b. No
c. It depends on individual circumstances
2. SUMMARY OF INDIAN SHARE MARKET –

 Indian Share Market an Overview
The share market in India is represented mainly by two stock exchanges the National Stock Exchange (NSE)
and the Bombay Stock Exchange (BSE).
Previously there were 22 stock exchanges recognised by the Government of India under the Securities
Contracts (Regulation) Act, 1956. These were the regional stock exchanges such as Hyderabad stock
exchange, Jaipur stock exchange, Madras stock exchange etc. but most of them are defunct now.
Mostly these regional stock exchanges have been closed in the last few years under the exit policy of SEBI.
Now the two stock exchanges BSE and NSE are the biggest and most popular stock exchanges in India and
attract almost all the stock trading volume in the country. At these exchanges, trading happens in digital form.
Both these exchanges have their own electronic automated trading system. These systems are one of the most
advance and fastest in the world.
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There are also two central depositories the National Securities Depository Limited (NSDL) and Central
Depository Services Limited (CDSL). These depositories maintain a record of the shares in India in digital
form.
There are several members of central depositories called Depository Participants or DP in short. Investors
need to open a Demat account with any of these DPs to avail the services of central depositories.
The Demat account hold record for all your shares in digital form same as bank accounts do for money. Almost
all major banks, brokers, and several NBFCs work as DP. An investor needs to open a Demat account with
any Depository Participant of his choice. With this Demat account, investors connect with the central
depository.
Before the existence of central depositories stock trading used to happen in physical form. At that time, shares
were exchanged between buyer and seller in the form of a physical share document. Which used to have many
risks involved with it such as bad delivery, fake share certificate, torn or patched certificates, and delayed
delivery of certificates etc.
With the introduction of central depositories that is NSDL and later CDSL, these risks involved with the
physical certificates got eliminated. The NSDL was introduced in 1996. Later in 1999 second depository that
is CDSL was introduced based on the same principles.
 The NSE and BSE
The National Stock Exchange of India Ltd (NSE) and Bombay Stock Exchange (BSE) are the two biggest
stock exchanges in India. BSE is the oldest stock exchange in India as well as in Asia. It is in existence since
1875 while NSE started trading in 1994. Both these exchanges are located in Mumbai..
The NSE was the first Stock Exchange in India to use a computerised, screen-based electronic trading system,
later BSE followed the all computerised digital trading system.
Now both the exchanges follow the automated digital trading methods, named the BOLT (BSE On-Line
Trading) and NEAT (National Exchange for Automated Trading) System.
Both the exchanges follow the computerised open limit order matching mechanism to match and execute an
order. In this mechanism, all the buy orders are automatically matched against the matching sell limit orders.
BSE has more than 5500 companies listed on it which is the most for any stock exchange in the world.
While NSE has about 2000 companies listed on it.
Of all the companies listed on BSE about half of them do not trade regularly and shares of these companies
are very illiquid. On both BSE and NSE top 500 listed firms account for about 90% of the market capitalization
of these exchanges.
On National Stock Exchange however number of listed firms are far less than the Bombay Stock Exchange
but its trade volume and daily turnover is much more than the BSE.
The regular trading hours on both the exchanges are 9:15 AM – 3:30 PM Monday to Friday. The exchanges
remain closed on Saturdays, Sundays, on the government holidays and holidays declared by the exchanges.
35 | P a g e
 Major INDEXES
Sensex and Nifty are the two most widely covered market indexes in both domestic as well as international
media.
‘Sensex’ or ‘S&P BSE Sensex’ is the major index of the Bombay Stock Exchange while ‘Nifty 50’ is the
benchmark index of the National Stock Exchange.
Sensex comprises 30 well established bluechip companies of different sectors while Nifty is a composite index
of 50 well-established companies from all major sectors.
Both Sensex and Nifty are calculated using ‘free-float market capitalization method.
There are also several other less popular indexes on both the exchanges such as Nifty Midcap 100, Nifty 500,
S&P BSE 100, S&P BSE 500 Etc. There are few other sector-wise indexes representing a particular sector
such as Nifty Auto, S&P BSE Bankex, S&P BSE FMCG, Nifty IT, etc.
Settlement Cycle in Indian Share Market
Previously on NSE and BSE, all trades used to settle on a rolling settlement of T+2 basis, that is, all trades
settle on the second working day. This means if you buy a stock on Monday, it will be credited to your account
on Wednesday.
But since January 27, 2023, SEBI has introduced T+1 settlement for most of the popular scrips or where their
trading turnover is high. Currently, there are around 256 stocks that are trading on the T+1 settlement cycle.
SEBI has planned to apply T+1 settlement for all the scrips from October 1, 2023. In the T+1 settlement cycle,
the stock will be credited to your account on the next working day of trade.
For arriving at the settlement day, all intervening holidays are excluded, which include Saturdays, Sundays,
BSE/NSE holidays, Government holidays, bank holidays, etc.
Recently, SEBI is also planning to move towards the T+0 settlement cycle. That is settling trades on the same
day.
 Market Regulator
The Indian securities market is regulated by the Securities and Exchange Board of India (SEBI). The agency
was given the status of a statutory body after the introduction of the Securities and Exchange Board of India
Act, 1992.
SEBI is the primary body to regulate the activities of the stock exchanges in India. It also regulates the
activities of share brokers/sub-brokers, depositories, promoters of companies, underwriters, retail bankers,
institutional investors, foreign institutional investors investing in India, portfolio managers, investment
advisors etc.
SEBI is responsible for the prevention of fraudulent trading practices such as insider trading and price rigging
to make the Indian securities market fair and equal playing field. SEBI has the authority to enquire companies
36 | P a g e
and investors regarding their trades in the Indian share market. It often imposes penalties on fraudulent traders
and companies if find them involved in any illegal trading activity. It has the right to ban people from accessing
the market and trading temporarily or permanently.
SEBI also handles complaints of investors’ against brokers, depositories, depository participants, companies
etc. Regulation of activities of mutual funds and venture capital is also done by SEBI.
The market regulator SEBI also runs several educational programmes and ad campaigns to make investors
aware of common frauds and risks of the securities market.
SEBI also promote development activities in the capital market. In short, the role of SEBI is to protect the
interest of investors and make the Indian capital market a safe and evolving market.
37 | P a g e
REFERENCES
Web-site : www.nseindia.org
www.bseindia.org
www.moneycontrol.com
News Paper: Economics Time

Business Standard
Books: Nism-Series-Viii: Equity Derivatives
38 | P a g e

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TradeTrek: Journey through Stock Markets

Summer Internship Report

In partial fulfillment of requirement for the degree of Master of Business

Vidarbha Youth Welfare Society's

Prof. Ram Meghe Institute of Technology and Research Badnera

(An Autonomous Institute)

Date of Submission: 05/09/2023

Summer Internship Program

Vidarbha Youth Welfare Society's

Prof. Ram Meghe Institute of Technology and Research Badnera

(An Autonomous Institute)

Department of Management Studies (M.B.A)

Prof. Dr. Shrikant Diwan Prof. Dr. Atul Kharad

(SIP Supervisor) (Departmental SIP Coordinator)

Prof. Ashish Deshmukh Prof. Dr. G. R. Bamnote

(Head of Department, MBA) (Principal, PRMITR Badnera)

Summer Internship Program

Summer Internship Program

Summer Internship Program

Summer Internship Program

Date- 05/09/2023 Nikhil Prakash Dodake

Summer Internship Program

Date- 05/09/2023 Nikhil Prakash Dodake

Place-Amravati MBA, PRMITR Badnera

Summer Internship Program

03 Outline of Task Undertaken 03

04 Learning through the project -

Introduction Of Stock Exchange 04

History Of Stock Exchange In India 04

Securities Exchange Board Of India 05

Bombay Stock Exchange 07

National Stock Exchange 08

Equity And Valuation 11

05 Contribution to the host organization 30

Summer Internship Program

Firm name - SM MONEY MANTRA

Investment Services available –

Outline Of Task Undertaken

 Educating the Investor

A STUDY OF STOCK EXCHANGE

HISTORY OF STOCK EXCHANGES IN INDIA :

Regulators of Securities Markets :

Securities and Exchange Board of India (SEBI) :

STOCK EXCHANGES IN INDIA

Bombay Stock Exchange (BSE)

NATIONAL STOCK EXCHANGE (NSE)

MARKET PARTICIPANT (Intermediaries)

Equity Analysis and Valuation

FINANCIAL RATIOS IN SHARE MARKET –

BANK FINANCIAL RATIOS-

TYPES OF CHART PATTERN

o The opening price

3.Heikin Ashi Chart

Hammer candlestick pattern

Engulfing pattern candlestick

Bearish Engulfing pattern

Four Price Doji

Long legged Doji

Marubozu Candlestick Pattern

Types of Derivative Products