CO-RELATION BETWEEN PROFITABILITY OF STOCK BROKERAGE HOUSES OF INDIA AND PERFORMANCE OF INDIAN STOCK MARKETS

MADE BY –:MOMI SAHA - 2010154

PRATEEK JAIN - 2010163

CONTENTS

- Brokerage Houses- Brief about few brokerage houses- Indian Stock Market- Performance of BSE & NSE- Comparison & Inference- References

BROKERAGE HOUSES- Business entities that deal with stock

trading.- In Indian context, they primarily work as

agents for buying and selling of securities.

- The total trading volume of Indian brokerage firms is expected to reach

US $6535.7.

TOP 10 BROKERAGE FIRMS IN INDIA1. KOTAK SECURITIES LTD2. KARVY STOCK BROKING LTD3. INDIABULLS4. IL & FS INVESTSMART INDIA LTD5. MOTILAL OSWAL SECURITIES6. RELIANCE MONEY7. INDIA INFOLINE8. ANGEL BROKING LTD9. ANAND RATHI SECURITIES LTD10. GEOJIT

KOTAK SECURITIES LTD• - A/C opening charge- Rs. 750 • Margin money- Rs. 25000• Name of the software used- Keat• Software installation charge- NIL• Maintenance charge- Rs.360• Exposure- 4 times of intraday.• Brokerage- Intra day 0.03% and Delivery 0.5%.• Name of the bank with the help of which customer get the

facility of net banking- HDFC, AXIS Bank, ICICI Bank, SBI, Citibank, KOTAK.

• Transaction Report- Through mail & courier.

KOTAK – PAT & REVENUE

2006-07 2007-08 2008-09 2009-10 2010-110

200

400

600

800

1000

1200

1400

Total Revenue (Rs Cr)PAT (Rs Cr)

INDIABULLS FINANCIAL SERVICES• A/C opening charge- Rs. 900 • Margin money- Rs. 975 • Secrecy- Password provided to the customers and it can be

changed by the customer only. • Name of the software used- PIB(Power India Bulls)• Software installation charge- Rs. 750 • No. of scripts provided by the software- unlimited • Maintenance charge- nil• Exposure- 20 times intraday and 8 times delivery.• Brokerage- Intra day-0.20% and Delivery- 0.25%. (varies with its

different category of customers like gold, silver, etc.)• Name of the bank with the help of which customer get the

facility of net banking- HDFC, IDBI, ICICI and Axis Bank.

INDIABULLS FINANCIAL SERVICES – PAT & REVENUE

2006-07 2007-08 2008-09 2009-10 2010-110

500

1000

1500

2000

2500

3000

Total Revenue (Rs Cr)PAT (Rs Cr)

MOTILAL OSWAL SECURITIES LTD• A/C opening charge- Rs. 415 • Secrecy- Log in password changes after 14 days • Name of the software used- Java • Software installation charge- Rs. 500 • Maintenance charge- Rs. 300 • Exposure- 4 times (for Intraday) • Name of the bank with the help of which customer get the facility of net

banking- HDFC, ICICI, AXIS Bank, City Bank, Standard Chartered Bank. • Services provided- Equity, IPO, MF. • DP sell charge- Rs. 23 • Brokerage- intraday- .03%-.06% & Delivery-.59%-.98% • Transaction Report- Through mail • Prepaid Scheme- not available.

MOTILAL OSWAL SECURITIES LTD – PAT & OPERATING INCOME

2006-07 2007-08 2008-09 2009-10 2010-110

10

20

30

40

50

60

70

80

Total Op Income (Rs Cr)PAT (Rs Cr)

IL & FS INVESTMENT MANAGERS LTD

- IL&FS Investment Managers Limited (IIML), a subsidiary of Infrastructure Leasing & Financial Services Limited (IL&FS).

- It was established in 1989 and has been an early and in many instances, the first investor across various sectors such as Telecom, City Gas Distribution, Shipyards, Retail, and Media.

- IIML is listed on the National Stock Exchange and The Bombay Stock Exchange

IIML – PAT & OPERATING INCOME

2007-08 2008-09 2009-100

100

200

300

400

500

600

700

800

900

1000

Total Op Income (Rs Cr)PAT (Rs Cr)

INDIAN STOCK MARKET• The Indian Stock Market mainly constitutes the Bombay Stock

Exchange (BSE), the National Stock Exchange (NSE) and Regional Stock Exchanges.

The NSE is the 9th largest stock exchange in the world by market capitalization and largest in India by daily turnover and number of trades, for both equities and derivative trading.

The NSE's key index is the S&P CNX Nifty, known as the NSE NIFTY (National Stock Exchange Fifty).

The BSE is a stock exchange located in Mumbai and is the oldest stock exchange in Asia. The index for BSE is BSE SENSEX.

PERFORMANCE OF INDIAN STOCK EXCHANGES

1/1/2007 1/1/2008 1/1/2009 1/1/2010 1/1/20110

5000

10000

15000

20000

25000

BSENSE

CO-RELATION BETWEEN STOCK EXCHANGES AND BROKERAGE HOUSES

1/1/2007 1/1/2008 1/1/2009 1/1/2010 1/1/20110

5000

10000

15000

20000

25000

BSENSECUMULATIVE PAT

INFERENCE

• The graphical representation shows that there is a positive co-relation between performance of Indian Stock markets and profitability of Indian Stock brokerage firms.

• We can observe that the variation in PAT of brokerage firms is not as much as the volatility of Indian Stock Exchanges.

REFERENCES

• www.moneycontrol.com• www.indiabulls.com• www.kotaksecurities.com• www.motilaloswal.com• www.ilfsindia.com• www.wikipedia.org

THANK YOU