Internship in securities in vertex
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Vertex Securities Limited is a leading financial services firm in India. It has been operating in the stock market since 1993. The company has various departments including backoffice, trading, and administration. Vertex is a member of several Indian stock and commodity exchanges. It offers investment avenues in both the stock and commodities markets. Fundamental analysis examines company financials and ratios to evaluate stocks, while technical analysis uses indicators like relative strength index and value at risk to identify trading opportunities. Gold exchange-traded funds (ETFs) allow investors to gain gold market exposure in a convenient, affordable, and secure manner compared to alternatives like jewelry and bank deposits.
![FORMULA
RSI=100-[100/(1+RS)]
RS=average gain per day/average loss per day
29](https://image.slidesharecdn.com/vertex1-141031103134-conversion-gate02/85/Internship-in-securities-in-vertex-29-320.jpg)
![• RSI=100-[100/(1+0.5271)]
=34.5164](https://image.slidesharecdn.com/vertex1-141031103134-conversion-gate02/85/Internship-in-securities-in-vertex-32-320.jpg)
Internship in securities in vertex
- 2. VERTEX-COMPANY PROFILE • VERTEX is a premier brokerage house in India on the fast growth track. • Vertex started functioning in the stock market in 1993. • VERTEX Group, a leading financial and investment service company in India. – Vertex Securities Ltd – Vertex Commodities &Finpro (P)Ltd. 2
- 3. VERTEX is a member of the National Stock Exchange of India (NSE), the Bombay Stock Exchange, the National Commodities Derivatives Exchange Ltd (NCDEX), and Multi Commodity Exchange of India (MCX). VERTEX is a full-fledged depository participant of the National Securities Depository Ltd. 3
- 4. VARIOUS DEPARTMENTS • BACKOFFICE DEPARTMENT • TRADING DEPARTMENT • ADMIN DEPARTMENT 4
- 5. BACKOFFICE DEAPRTMENT • FUNDAMENTAL NEEDS TO PARTICIPATE – DEMAT ACCOUNT – TRADING ACCOUNT • QUERIES REGARDING PARTICIPATING IN STOCK EXCHANGE • HANDLING THE ACCOUNTS OF A COMPANY • KYC 5
- 6. TRADING DEPARTMENT • ACTUAL TRADING TAKES PLACE • TRADING – EQUITIES AND COMMODITIES • OPTION : STOP LOSS • ODIN CLIENT SOFTWARE 6
- 7. ADMIN DEPARTMENT • Client transaction management • Brokerage • Client management 7
- 8. AVENUES OF INVESTMENT • STOCK MARKET FUNDAMENTAL ANALYSIS TECHNICAL ANALYSIS • COMMODITIES MARKET 8
- 10. • Fundamental analysis is the technique of applying the tenets of the firm foundation theory to the selection of individual stocks 10
- 11. About company • TCS • HCL • Infosys • Tech mahindra • Wipro 11
- 12. Parameters used • EPS • P/E ratio • PEG ratio • P/s ratio • P/b Ratio • Return on net worth • Dividend pay-out ratio 12
- 13. FORMULAS • EPS = Earnings/(No of shares) • P/E ratio = Martketprice/(EPS) • PEG ratio= P/E / (projected growth in earnings • p/s ratio = Market Cap / Revenues • P/B ratio = Marketprice/(book value) • ReturnNetworth = Net income aftertax /(networth) • DYR = Divident/(share price) 13
- 14. Compa ny EPS p/e ratio Book value p/b ratio Peg ratio p/s ratio Divide nd payout ratio (in %) Return on net worth Market price( in july) TCS 102.6 24.51 224.90 11.19 1.39 5.37 1.27 48.2 2516.45 Wipro 32.8 16.35 118.98 4.50 1.18 3.08 1.31 27.6 536 Infosys 185.7 17.99 733.03 4.56 1.25 252.94 1.89 26.1 3341.3 HCL 85.44 17.74 146.09 10.37 1.28 191.22 0.79 44 1515.55 Tech mahind ra 111.28 19.12 365.81 5.81 1.06 2.74 0.94 42.1 2127.25 14
- 15. OBSERVATION • Infosys Earnings capabilities more then Tech mahindra and TCS. • High P/B ratio determine the price premium – TCS>HCL>Tech Mahindra • ROE : TCS> HCL> Techmahindra • Low dividend pay-out – HCL , Tech mahindra • Industrial P/E -> 22.13 – TCS is more – Tech Mahindra is close to Industrial P/E 15
- 16. FUNDAMENTAL ANALYSIS OF AUTOMOBILE INDUSTRY Compay EPS p/e ratio Book value p/b ratio Divi dent payout ratio(% ) Return on net worth Market price( in jul) BAJAJ AUTO 112.16 18.90 332.04 6.38 450% 38.51 2121.65 MARUTI SUZUKI INDIA 96.45 27.15 707.16 3.70 160% 12.87 2622.60 MRF 1803.95 12.99 8594.71 2.73 250% 20.02 23434.35 BOSCH 302.94 44.73 2004.62 6.74 550% 14.05 13630.45 16
- 18. PARAMETERS USED • Value at Risk • Relative Strength Index 18
- 19. COMPANIES • MRF • TIDE WATER OIL • STRIDES AROCLAB • LASKHMI MILL • BOSCH • JK BANK • SHREE CEMENT • GODREY PHILIP • UB HOLDINGS • INFOSYS 19
- 20. VALUE AT RISK 20
- 21. What is value at risk? • Value-at-Risk analyses provide the risk manager with a single measurement of the risk faced by that institution at a particular time. • The Value-at-Risk is the maximum loss that the institution is likely to face within a given time period with (usually) a 95% probability. 21
- 22. Methods of calculating VaR • Variance – covariance • Historic • Monte Carlo simulation 22
- 23. Formula VaR(95%) = p * σ * z P=price of the share σ=standard deviation Z=Z value 23
- 24. For example An MRF stock is trading at Rs.23050 with a one-year standard deviation of 20% In the normal distribution, 95% confidence level is 1.645standard deviations away from the mean. Therefore, our VaR at 95% confidence level will be: VaR(95%) = 23050*0.20*1.645 = 7583.45 24
- 25. COMPANY 12/31/2013 12/30/2013 12/27/2013 12/26/2013 MRF 245.64 244.32 246.2 241.94 TWO 99.03 98.03 101.28 103.31 STRIDES ARCOLAB 16.32 16.5 16.38 16.71 LAKSHMI MILL 49.02 50.59 51.81 51.66 BOSCH 325.79 331.24 336.91 342.98 JK BANK 37.71 37.6 37.09 36.53 SHREE CEMENT 135.89 136.15 137.67 137.74 GODREY PHILIP 48.68 48.91 47.33 48.16 UB HOLDINGS 1.25 1.04 1.04 1.05 25
- 26. RELATIVE STRENGTH INDEX 26
- 27. RELATIVE STRENGTH INDEX • It is an oscillator used to identify the inherent technical strength and weakness of a particular scrip or market. • A technical momentum indicator that compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions of an asset. 27
- 28. • The RSI can be calculated for any number of days depending on the wish of the technical analyst and the time frame trading adopted in a particular stock market. • RSI is calculated for 5, 7, 9 and 14 days. If the time period taken for calculation is more, the possibility of getting wrong signals is reduced. 28
- 29. FORMULA RSI=100-[100/(1+RS)] RS=average gain per day/average loss per day 29
- 30. Example DATE PRICE CHANGE 1/3/2011 7356.4 0 1/4/2011 7406.8 50.4 1/5/2011 7326.85 -79.95 1/6/2011 7179.95 -146.9 1/7/2011 7059.65 -120.3 1/10/2011 6670.5 -389.15 1/11/2011 6596.85 -73.65 1/12/2011 6684.3 87.45 1/13/2011 6675.7 -8.6 1/14/2011 6579 -96.7
- 31. Number of highs=2 Average of highs=137.85/2 =68.925 Number of lows=7 Average of lows=915.25/7 =130.75 RS=68.925/130.75 =0.5271
- 33. SERIAL NUMBER COMPANIES RELATIVE STRENGTH INDEX 1 MRF 44.20 2 TIDE WATER OIL 42.89 3 STRIDES ARCOLAB 49.94 4 LAKSHMI MILL 48.01 5 BOSCH 42.43 6 JK BANK 48.54 7 SHREE CEMENT 44.03 8 GODREY PHILIP 41.55 9 UB HOLDINGS 48.33 10 INFOSYS 49.22 33
- 34. INTERPRETATIONS • 0-30 Buy mode • 40-70 (mean + standard deviation) above the mean – sell mode below the mean – buy mode • 70-100 Sell mode 34
- 36. OBJECTIVES OF THE STUDY PRIMARY OBJECTIVE To analyze the performance of the GOLD-ETF in national stock exchange (NSE) with reference to vertex securities. SECONDARY OBJECTIVES To find out the risk and correlation in between the gold ETF and commodity, spot market. To find out the best performing gold avenues in the capital market. To find out the long (buy) and short (sell) signal of the GOLD-ETF in NSE. To give suggestion to the investors regarding the investment of money in GOLD-ETF. 36
- 37. SAMPLING DESIGN A sample design is a definite plan for obtaining a sample from a given population. It refers to the technique of the procedure the researcher would adopt in selecting items for the sample. Sample design may as well lay down the number of items to be included in the sample i.e., the size of the sample. Sample size: The population of the study is 5 companies which involves in issuing of Gold ETF. Sample size is also 5. SAMPLING METHOD Census Sampling is the sampling method used here. When the entire population is enumerated for sampling its known as census sampling. PERIOD OF STUDY The period of the study is confined from 23rd June to 22nd july 2014 (4 weeks) SAMPLING FRAME Gold Exchange Traded Fund. •SBI Mutual Fund - SBI Gold Exchange Traded Scheme – Growth Option •Kotak Mutual Fund - Gold Exchange Traded Fund •Axis Mutual Fund - Axis Gold ETF •Religare Mutual Fund - Religare Gold Exchange Traded Fund •Birla sunlife exchange traded fund 37
- 38. DEFINITION EXCHANGE-TRADED FUND - ETF A security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange. ETFs experience price changes throughout the day as they are bought and sold. Structure of ETF: 38
- 39. MCX Multi Commodity Exchange of India is a de-mutualised online commodity exchange of India promoted by Financial Technologies (I) Ltd, SBI, Fidelity International, NSE, NABARD, HDFC Bk, SBI Life Insurance Co., Union Bank of India, Canara Bank, Bank of India, Bank of Baroda and Corporation Bank. Products Bullions Metals energy Oil & oil seeds pulses Cereals Fibers Plantations others 39
- 40. S. No Parameter Jewellery Bank Gold ETF MCX-GOLD 1 How Gold is held Physical (Bars / Coins) Physical (Bars / Coins) Dematerialized (Electronic Form) Dematerialized (Electronic Form) 2 Pricing Differs from one to another. Neither transparent nor standard. Differs from bank to bank. Not Standard. Linked to International Gold Prices and very transparent. Linked to International Gold Prices and very transparent. 3 Buying Premium above gold price Likely to be more Likely to be more Likely to be less More in case of Physical delivery 4 Making Charges Charges are incurred Charges are incurred No Charges are incurred No Charges are incurred 5 Impurity Risk High Nil Nil Nil 6 Storage Requirement Locker / Safe Locker / Safe Demat Account Demat Account 7 Security of Asset Investor is responsible Investor is responsible Fund House takes the responsibility Fund House takes the responsibility 8 Resale Conditional and uneconomical Banks do not buy back At Secondary Market Prices Not applicable after physical delivery Overall comparison of means of Gold investment: 40
- 41. 9 Convenience in Buying / Selling Less convenient, as Gold needs to be moved physically Less convenient, as Gold needs to be moved physically More Convenient, as held in electronic form under the demat account More Convenient, as held in electronic form under the demat account 10 Quantity to Buy / Sell Available in standard denomination Available in standard denomination Minimum is ½ or 1 gram according to the fund Minimum 10 grams 11 Bid Ask Spread Very High Can’t Sell Back Very Low 12 Risk of Theft Yes, possible Yes, possible No, Not possible No, Not possible 13 Wealth Tax Yes Yes No 14 Long Term Capital Gains Tax Only after 3 years Only after 3 years After 1 year 15 Delivery Centre Single Single Single Multiple 16 Market timings 10 AM-7AM 10 AM- 5PM 9 AM-3.30 PM 10 AM-11.55PM 41
- 42. Advantages of ETFs •Tradable and Diversifiable •Low Cost •Transparency •Multiple Trading Strategies •Best during Bear markets •Convenience •Option Strategies •Passively Managed Disadvantages of ETFs •A new Market Concept •Large Investments •Brokerage Charges •Premiums and Discounts •Costly in Certain Situations 42
- 43. THANK YOU!!! 43