Summer training project

Summer Training Project

Company: HSBC Invest Direct and HSBC Bank

Advisor: Mrs. Shilpa Jain

Presenter: Vikram Jain MBA 2A

Market Penetration Of Different Stock Broking Firms And a Look

Into The Services Offered By Them

The HSBC GROUP

Hong Kong And Shanghai Banking

Corporation

Group History

Established in 1865Trade Between China and EuropeFonder Mr. Thomas SutherlandHead Office In LONDON

Making Headlines

World`s Largest Bank ( Forbes 2010)World`s Third Largest Company

(Forbes2010)9500 Offices In 88 Countries( Widest

Presence)302000 Employees

OFFERRINGS

Finance And InsuranceConsumer BankingCorporate BankingInvestment BankingInvestment ManagementMortgagesCredit Cards

Figures SpeakRevenue: $ 103.74 billion Operating Income: $ 7.079 billionProfit: $ 5.834 BillionTotal Assets : $ 2.364 TrillionTotal Equity : 128.299 billion

Increasing Online Trading

Industry Insight

45 Equity Brokerage Houses Listed In Stock Exchanges

394 Broking FirmsMore Than 9000 Brokers But 80% Of

Turnover Is From 100 BrokersIn Cash Market, Majority Of Branches Are In

North.

Indian Stock Market

23 recognized Stock exchangesBombay Stock Exchange is 128 years oldSensex: A basket of 30 constituent stocksNational Stock Exchange incorporated in

1992NSE towers all the other Stock exchanges in

the country

Stock Trading

Installable Software based on stock trading terminal

Web based trading application

Installable Software……

Advantages:Direct orders to stock exchangesProvides information on single screenDisadvantages:You can not trade if you are not on computerIt requires high speed internet connectionBeyond the access of low volume traders

Web Based……

Advantages:Real time stock tradingCheck balance any timeProvide online tools, like graphs Disadvantages:Websites are too slowTough for people not much habitual with

computers

Major Players

ICICI DirectAngel BrokingReligareShare KhanReliance MoneyHSBC Invest Direct

IL&FS

IL&FS India`s leading infrastrucure companyStarted in 1980Got “National Best Performing Advisor” for

two years in a row (06-07 & 07-08) by CNBC TV 18

Vision & Mission Statement

Vision:To become the preferred long term financial

partner to wide base of customers

Mission:To establish a base of 1 Million Satisfied

customers by 2010

Why Invest with IL & FS

CustomizationExpertiseOne stop ShoppingTrustPersonalized ServiceExtensive ResearchUnbiased Advice

From IL&FS Securities to HSBC ID

IL&FS sold 29.36 % share to HSBCCost $ 96.9 MillionSigned non compete agreementMarket capitalization of $ 300 Million

Online Trading

Smart startSmart investSmart trade

Smart Start

Freedom of informationControl of investor`s moneyAccess to marketOffers greater transparencyLive analysisAccess to BSE and NSE

Smart Invest

Instant loadingSingle order form for cash and FOMultiple watch listsMarket depth windowLive steaming quotes

Smart Trade

Fully customizable displayReal time market dataAdvanced alert capabilitiesTrack your orders real timeDynamic buying power

Advisory Services

Mutual Fund Advisory ServicesPortfolio Management ServicesIPO Advisory ServicesInsurance Advisory ServicesInvestment Advisory Services

SWOT

Strength

CustomizationExpertiseOne stop shop for all investments needsExtensive reachBrand ImageCompetitive pricingUnbiased advice

Weakness

Expensive productsTedious proceduresFund transferAttritionUnattractive offers

Opportunities

Right time to invest, as recession is overIncreasing trainees of B schoolsUntapped market of rural areasTie up with banks for wider coverage

Threats

Stiff competitionAware customerChanges in Govt. policiesRecession has turned many investors out of

market

Financial Analysis

Liquidity 2009 2008 2007

Current Ratio

1.90 2.30 2.20

Quick Ratio

1.10 1.10 1.00

Return related

2009 2008 2007

Return on total assets(%)

9.90 12.00 12.50

Return on net worth(%)

20.60 13.50 14.40

Profitability 2009 2008 2007

Gross Margin(%)

30.20 30.80 31.50

Net Profit Margin(%)

6.60 5.50 6.10

Leverage 2009 2008 2007

Debt/ Equity ratio

2.59 1.42 1.44

Total debts/ total Assets

.69 .55 .54

Years SalesPercent

age2006-2007 4777.64 1002007-2008 5208.38 109.022008-2009 6106.43 127.81

Trend Analysis of Net Sales

Trend analysis of Expenses

Years Expenses Percentage2006-2007 720.32 1002007-2008 792.62 110.042008-2009 809.66 112.40

Trend analysis of net profit

Years Net Profit Percentage2006-2007 291.12 1002007-2008 286.50 98.412008-2009 401.52 137.92

MARKET PENETRATION OF DIFFERENT STOCK

BROKING FIRMS AND A LOOK INTO THE

SERVICES OFFERED BY THEM

Statement Of Title

Objectives

To compare service offerings of HSBC Invest Direct with Competing Firms

To do comparative analysis of different stock broking houses in context to services

To find out the most common i.e. most preferred broking firm

Research Methodology

Research Design: Descriptive

DATA Collection Primary and Secondary

Sample Size:100

Sampling Plan

Universe – All Demat a/c holders

Population- All Demat a/c holders in Ludhiana

Sampling Unit – Any individual having Demat a/c in Ludhiana

Sampling Size – 100 Respondents

Sampling Technique- Convenience Technique

Data analysis & Discussions

Income

9

22

31

22

16

0

5

10

15

20

25

30

35

L es s than 1lac 1-3 lac s 3-5 lac s 5-10 lac s More than 10lac s

Profession of the Respondent12

28

1113

21

15

Market/C um s alesexec utiveManager

E ngineer

IT profes s ional

B s ines s man

Any Other

Percentage Of Investment43

2321

13

0

5

10

15

20

25

30

35

40

45

50

B elow 0.10% 10 to 20% 20 to 30% Above 30%

Broking Firm`s Name

5

911

27

6

1012

5 57

3

0

5

10

15

20

25

30

IndiaInfoline

IndiaB ulls

S hareK han

IC IC IDirec t

R elianc eMoney

R eligare Angelbroking

Unic on L S E HS B CInves tDirec t

AnyOther

Informative Parameters About This Brokerage House

12

18

35

6

23

6

B roadc as ting Media

P rint Media

F riends /C olleagues

Internet

Through B rokers

Any Other

Brokerage Paid

28

32

23

8 9

0

5

10

15

20

25

30

35

1 2 3 4 5

Way of trading in stock market

43

27

30

Online

Offline

B oth

Well informed investors keeping a look at the market alternatives available

64

36

Y es

No

Different Rating Parameters

4.03125 3.968753.84375

3.453125 3.421875

3.78125

3.13.23.33.43.53.63.73.83.9

44.1

Client Satisfaction Level

3.913.82

3.94 3.88

3.62

3.33

3

3.1

3.2

3.3

3.4

3.53.6

3.7

3.8

3.9

4

R es earc h E ngine B rokerage Tec hnology Offic eInfras truc ture

C us tomerS upport

A fter s ale

Major Factors Considered Before Investing

19

3128

22

0

5

10

15

20

25

30

35

Opportunity ofs teady growth

P ac e at Whic hWealth grows

S afety ofInves tment

Amount OfMonthly Inc ome

Persons Willing To Shift Their Brokerage House

47

53

Y es

No

Percentage of people, satisfied with certain services at their brokerage house

Basis: Research

engine

Brokerage Technology Office

infrastructure

Customer

Support

After

sales

services

Avg.

Infoline 100 80 90 70 80 70 82

bulls 90 90 80 70 90 80 82

Share

khan

90 80 80 80 90 90 85

ICICI

Direct

90 90 90 80 90 90 87

Reliance

Money

60 80 70 80 70 70 70

Religare 70 90 70 60 80 80 72

Angel

broking

80 80 90 80 80 70 80

Unicon 70 80 80 70 70 80 75

LSE 70 90 80 80 60 70 75

HSBC

Invest

Direct

90 70 80 80 80 70 78

Facts and findings

ICICI Invest Direct has the maximum share in the market

Brokerage is a major concern for clients of all the broking firms

North is the booming place for all stock brokers

Online trading is becoming very popularAfter sale services of the concern have major

role to play in ascertain the satisfaction level of the clients

UPSHOT

Vast Scope Of Financial companies in IndiaMoney charged must be competitiveSomething new is needed which is different

from the leagueCustomer fetches customerRealizing time value

Bibliography

  Reference to magazines Smart update (HSBC Invest Direct) Business Outlook   Reference to web pages http://www.moneycontrol.com/ http://www.nseindia.com/ http://www.bseindia.com/ http://www.hsbc.com/ http://www.finance.indiamart.com/markets/nse/ http://www.google.com/