(A comprehensive study of factors responsible for the

expansion and growth of financial markets in agra.)

By :-
Puneet Dutta
7NBAG018

A report submitted in partial fulfillment of the requirement of

THE MBA PROGRAM

(The Class of 2009)

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 TABLE OF CONTENT
1. Acknowledgement
2. List of Tables

3. Summary till date

4. Industry profile

4.1 Overview of Financial Securities

4.2 Market share of Financial Players.

4.3 Classification of customer segement

4.4 Expansion and growth plan of Securities

4.5 Profile of Financial Securities

5. Introduction of Research

5.1 Objective and limitations

5.2 Methodology

5.3 Questionare

6. Analysis & Findings

6.1 Review of literature

6.2 Empricial analysis

6.3 Findings and Suggestions

7. Conclusion

8. Appendices

9. References

2
 Acknowledgement

Before presenting the interim report, I would like to

thank Col. V.K.Bali (center head) for providing me the
opportunity to learn and special thanks to Ms. Aarti
Singh(faculty guide) for providing valuable suggestions
for management thesis.

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 List of Graphs

 Graph 1 ………………………………………………..
(representaion of market share of different companies in India)

 Graph 2 …………………………………………………
(representation of major Financial players in India)

 Graph 3
(representation of respondent from different companies)

 Graph 4
(representation of occupation of different respondents)

 Graph 5
(representation of respodents gropus of survey)

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 Summary

Financial need is one of the major factor that drive the people of
any state to live their life in an better way. Financial market provide
the basic platform for the people to get valuable benefits form the
investement.
In India it all started in early 1990’s, when Indian goverement
changed the policies for FDI and FII, which enabled them to invest
in India and provide people a greater oppoturnity to invest and
take benefits from the options avaliable.
The factor that participated in the growth of the sector are
goverement policies liberlisation, industrilisation, demographic
changes, lifestyle change etc.

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 Overview Of Finacial Securities

The ulimate goal of any individual investor or corporates is

maximization of profit or rate of return. Investment management is
an on-going process which needs to be constantly monitored by
way of information as this may affect the value of securities or rate
of return of such securities.Therefore,a finance manager needs to
have basic knowledge and understanding of the framework of
security valuation which is essentially based on conceptual
understanding of time value of money and risk-return
relationship.Financial is a wider concepts it gives the following
concepts:-

• A true picture of a company over a representative time span.

• Estimation of future profitablity and growth and the reliability

of such expectations.

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 Financial Market Profile

A financial market can be defined as the market in which financial

assets are created or transferred. Financial assets represent a
claim to the payment of a sum of money sometime in the future or
periodic payment in the form of interest or dividend.Financial
markets are sometimes classified as primary and secondary
markets.But, more often financial markets are classified as money
market and capital markets.
1. Money Market:-
One of the important function of a well-developed money market
is to channel savings into short-term productive investments like
working capital.
• Call Money Market:-
The call money markets forms a part of the national money
market, where day-to-day surplus funds,mostly of banks, are
traded.The call money loans are of very short term in nature and
the maturity period of these loans vary from 1 to 15 days.

• Commercial Paper and Certificate of Deposits

Commercial Paper and certificate of deposits are money market
instrument launched in early nineties, and the market for these
instrument are not well-developed in india when compared to
foreign countries.

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 Market share of Financial Players in
India:
Share khan: Share khan is online stock trading company
of SSKI group, provider of India-based investment banking and
corporate finance service. Share Khan is one of the largest stock
broking houses in the country

2. India bulls: India bulls is India’s leading Financial

Services and Real Estate Company with a Pan India
presence. We offer ease, convenience and reliability in all
our products from securities to consumer finance,
mortgage to real estate development

Religare: Religare is a leading equity and securities firm

in India. The company currently handles sizeable volumes traded
on NSE and in the realm of online trading and investments it
currently holds a reasonable share of the market

Kotak: Kotak Securities Ltd. 100 % subsidiary of Kotak

Mahindra Bank is one of the oldest and largest broking firms in the
Industry.Our offerings include stock broking through the branch
and Internet, Investments in IPO, Mutual funds and Portfolio.

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 3%
9%
Kotak
19% 42% Religare
Indiabulls
Sharekhan
Others
27%

graph 1

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 Classification of customer segment:

The customer is distrubted in major four segments that are:

 Middle and lower middle class- Economy segment-
(Sharekhan
Broker)
 Upper middle class-executive segment-(India bulls Share
trading)
 Upper class-Premium segment-(Religare Securities)
 Higher class-(Kotak Securities)

• Major Financial players in India:

10
 10%
20%
12% Religare
Indiabulls
Kotak
18% Sharekhan
Others
40%

•
Graph 2

Expansion And Growth Plans of

Securities
In recent times, Indian retail brokerage industry has grown by
leaps and bound.Improvement of the investment climate by
allowing foreign institutional investors to invest in equity and debt
markets has gone a long way to help establish India as emerging
market of note. A booming stock market and increasing investor
base coupled with reforms in capital market has brightened the
prospects for the industry. Expansion of product range offered by
the stock exchanges like derivatives and revival of commodities
futures market has added depth and dynamism to the industry.
The major growth drivers of the Indian retail brokerage industry
are the increasing appetite for equities among investors as an
asset class, declining brokerage fees, adoption of technology —

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screen-based trading, electronic matching, and paperless
Securities, centralized operations, effective risk management,
increasing access to capital and the ability to provide margin
finance. Still, the number of individuals in India, who have invested
in stocks, is veritably small compared to global standards, which
suggests that there is still much room for expansion. However in
recent times, the sector has emerged as a high volume, low
margin sector, with a large number of players including foreign
institutions seriously considering entry into the sector in a big way.
Currently, the industry is in a consolidation phase with ICICI
Direct, Indiabulls, Kotak Securities, Angel Broking, Geojit
Securities etc. being the leading players.

INTRODUCTION
A financial market is a mechanism that allows people to easily
buy and sell (trade) financial securities (such as stocks and
bonds), commodities (such as precious metals or agricultural
goods), and other fungible items of value at low transaction
costs and at prices that reflect the efficient market hypothesis

• Borrowing and Lending: Financial markets permit the

transfer of funds (purchasing power) from one agent to
another for either investment or consumption purposes.
• Price Determination: Financial markets provide vehicles by
which prices are set both for newly issued financial assets
and for the existing stock of financial assets.
• Information Aggregation and Coordination: Financial
markets act as collectors and aggregators of information

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 about financial asset values and the flow of funds from
lenders to borrowers.
• Risk Sharing: Financial markets allow a transfer of risk from
those who undertake investments to those who provide funds
for those investments.
• Liquidity: Financial markets provide the holders of financial
assets with a chance to resell or liquidate these assets.
• Efficiency: Financial markets reduce transaction costs and
information costs.

Objective
 To find out the key opportunities involved in growth of
financial market at Agra

 Factors involved in step rise in financial market.

 The steps taken by financial Companies to increase the sale

of Financial products.

 Also to know the effect of advertising and other promotional

activities undertaken by the company to establish their
corporate image in the mind of customers

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 To know the impact of marketing mix tools used by the
company to attract the customers.

Limitations:

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 People are not much aware of the financial market situation

 People form their opinion based on rumors of market rather

than from real experiences.

 Time constraint

 Cost involved

 Lack of zeal in respondents to answers the questions

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 Methodology

 To fulfill the above mention objective “Survey method”

which includes the in-depth questioner of both the open
ended and closed ended questions.

 It include following requirements

o Source of data:

To fulfill the above mention objective primary data will be

collected.

o Questionnaire Design:

It is more of a combination of open and close ended

questions, which reflect the proper response.

o Internet:

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 I am taking the help of internet to gather information

Application Of methodology

1.Sample design :-
Sample of customers are selected from different occupation and
age wise.

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 10%
18%

Government
16%
Businessmen
Student
Farmer
Pvt. Employee
14% 30% Occuaptional

12%

Graph 4

2. Source of data & questionnaire design :-

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 Primary data is collected by conducting the market surveys by using
the questionnaire.
Data is collected both conducting survey on to the customers. The
Companies research is conducted by using certain parameters.

SAMPLE QUESTIONNAIRE

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 1. What do you think About current market position?
(a) Good (b) Bad (c) Satisfactory
(d) Beyond Expectation
2. What do you think that people are start investing in financial
market ?
(a) Yes (b) No (c) Awareness
(d) Growth
3. What is the reason behind the investment?
(a) Growth (b) Awareness (c) Profit
(d) Wide Scope
4. What do you think the factor responsible for the expansion
and growth of financial market in agra?
(a) Competitors (b) Awareness (c) Growth
(d) Competitions
5 How do you differentiate from other competitors ?
(a) Services (b) Products (c) Customer Handling
(d) Quality

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 6. On the basis of customer handling which Financial company you
like?
(a)Kotak (b) Religare (c)Sharekhan (d)India bulls

7. If you suggest your friend to purchase any financial products

which company you suggest and why ?

A. Receiving the customers

a. Greeting the customer and welcoming
b. Asking about customers requirement
c. Understanding the customers

B. Product presentation
a. Detailed presentation about features of product
b. Using of flip charts or other materials

C. Differentiated from other companies

a. Telling other facilities which can differentiated.
d. Providing value added services

Step involved are…

 Identifying the objective

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 Framing the resources to use

 Selecting the method to use

 Selecting the sample size

 Conducting the survey

 Scrutinizing the received data into information

 Using analytical tool to find the proper findings

 Validation of findings

 Evaluating the limitations

 Concluding the research

Empirical Analysis

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To find out the market share in the mind of their target customers via
analyzing their competitors, the required variables those were found
during the study are:

1. Selecting the sample group of respondents on the basis of

market share of financial market

Others Religare
Religare
Kotak
Sharekhan
Indiabulls
Kotak Sharekhan
Others
Indiabulls

Graph 5

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2. To gave better dimension to the research different
respondent are selected according to their profession

Goveremen
Occpational t Goverement
Student
Pvt.
Employee Businessmen
Farmer
Student
Pvt. Employee
Farmer
Businessme Occpational
n

Graph 6

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 3. Another criteria that was used was the preference of
purchase mode by the customer, either it can be cash or

HIRE

CASH
HIRE

CASH

hire

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4. Servicing preference of customers are also taken as variable for the
findings

Both Local
Broker Local Broker
Dealership
Both

Dealership

These variable are used as the measurement tool for the

research, they project the perception of customers about the
company in comparison of their competitors.
To know the impact of variables like of cost, service, convince
an in-depth analysis is performed. The responses received by
the survey projects the image perception of customers about
these variables.

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 Findings

After completing the primary research the findings came are shown in
graphical form.
1. Reason of customer selecting the Financial company over their
competitors, on the basis of Cost, service and convince contribution.

45
40
35
30
25 Cost
Service
20
Convince
15
10
5
0

Bar 1

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2. Contribution of promotional strategies used by Financial companies in
comparison of their competitors in forming the positive image of
company.

50
45
40
35 free gifts
Kotak
30 Offers
Religare
25
Indiabulls
Advertis
20 ing
Services Sharekhan
15
10 Other
5
0
Advertising Offers
Bar 2

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3. Effect of after sales service on to the customer image formation about
the company image.

60

50

40 Kotak
Religare
30
Sharekhan
Indiabulls
20
Others
10

0
1st Qtr
Bar 3

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Observations during the primary research are…

1. Durability plays a key role in the success of any product and therefore,
people pay attention for quality of their services

2. On the other hand they shy to opt for authorized servicing

3. Agra is in the phase of industrial-development and so are the people,

therefore their attitude towards Financial products is slightly changed –
from introvert to extrovert.

4. The main distinctions between AD and PGM, while preferring for

servicing are- cost, convenience and time.

5. We can give them timely and haphazardly reminders, in order to keep

them attached with the company

6. We can also provide them different timely offers to attract the

customers.

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 Objective based findings

Objective I:
To find out the key strengths of Kotak Securities which give edge over
their competitors in the mind of their target segment.

Findings:
From the research it had been found that…
 Location of Local francises in town, like holding locations in Sanjay
Place, khandri, Nehru Nagar.
 Kotak has a strong reputation in the mind of customers, because
of good market share.
 Kotak has a strong base of financial products in minds of the
customers
 Good margin and flexibility is more in case of kotak as compare to
its competitors.
 In comparison of Ambience and standard of services Kotak has an
edge over others.

 Level of participation of employees both dealerships and company

official is stand a part in comparison to others.

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Objective II:
Major drawback of Kotak Securities in the mind of their target customer
segment.

Findings:
From the research it had been found that…

 Lack of promotions by the company creates the ambiguous

customers.

 Low quality of after sales service in some dealerships; distort the

image of all dealerships.

 Low products awareness among the customers.

Objective III:
Effect of promotional tools used by company to attract the potential
customers.

Findings:
From the research it had been found that…

 Company is focused to use the mass media marketing.

 Local marketing strategies are not proper shape due to which the
cost-benefit is low.

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  Specials discounts and schemes have a depth effect on customer
perceptions.

Suggestions

From the findings is has been observed that that Kotak has the impact on
the mind of customers but they are not able to properly maintain their
image or hold their position in market. After the launch of different
financial products in market Kotak had established themselves positively
in Agra market, they have the huge customers base, during 2002-2004
they are able to cross the market share of Religare but the biggest
drawback that company had faced is their inability to meet the
expectations of customers. Reasons for failure of market share after 2005
was:

 Unable to meet supply-demand gap

 Low Market Surveys

 Lack of new product in market

 Lack of proper promotions in Agra

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It has been observed that Kotak has the all prerequisites to over these
hurdles, they can follow few simple steps to make them a success in Agra
market:

 Maintaining a proper ratio of supply and demand

 Focusing more strategically on market

 Increasing marketing budgets

 Helping Sub-dealerships to hold in market

 Proper checkups and feedbacks from customers

 Focusing more on relationship marketing

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 Conclusion

Finally we can draw a conclusion, on the basis of the research and

surveys in the market, that:

 Quality is the prime standard for sustainability in the market,

 Cost must be competitive ,

 Location is again a key aspect for servicing, therefore it must be

decided strategically

 Company must be in touch with the customers in order to make long

term relations.

 Creating a positive image requires time to time feedbacks and value

checks by company.

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 Reference

• Primary Data : survey on samplegroup,include

Personal interviews, questionnaire.
• Secondary Data : journals include
 Business today magazine(April
20,2008)

 Economics times(19 June)

 Reference books

• Narendra K. Malhotra (BRM, Icfai university)

• Presser Stanley, (Methods for testing Evaluating survey

questionnaire)

 Website used
• www.statcan.ca
• www.gsociology.org
• www.bizjournals.com

36
 • www.tvsmotors.org
• www.ibef.org

 Others

• SIAM, IMaCS Analysis

37