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INDIAN INSTITUTE OF PLANNING AND MANAGEMENT

SS BATCH 2008-2010

INTERNSHIP PROJECT

Prepared By

Chetan Sharma (SD-1)

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Acknowledgement

I thank Mr.Sachin Singh Thakur in particular for assigning me this area of work and encouraging me to work

and perform the in the first place. I owe much to Mr.Sachin Singh Thakur for his helpful comments.

I am indebted to all those who have been helpful throughout the process of analysing and gathering facts to

write this report – Ms.Harveen, Mr.Naveen, Mr.Ratnesh, Mr.Ashwani, Ms.Charu but as the cliché goes, I am

solely responsible for ay remaining errors of fact or judgment.

Sachin Singh Thakur

_______________________( Regional Head (Delhi and NCR))

Religare Advisory and Research

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Serial no Topic Page no.

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2 certificate by faculty guide

3 Acknowledgement

4 executive summary

5 company overview

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Executive summary:

This project has been a great learning experience for me; at the same time it gave me enough scope to

implement my analytical ability. This project as a whole can be divided into two parts:

The first part gives an insight about how the Nifty works, what is free float methodology and what is its

importance in calculating the index. Secondly, how the correlation analysis can be used to effectively

predict and calculate expected values of the stocks listed on the NSE with a base criteria how to give a

investor a safe price to play within the Intraday segment of investors in stocks listed on the NSE.

The second part consists of a market research and strategy building regarding promotion and brand

building of the Religare Branch at Rajouri Garden. Various techniques used for market research and

promotion tools used with an aim to make a pull strategy for the Branch.

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Organization overview

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Introduction:

“Investment Gateway of India” is the message the Organization conveys to its mass market segment.

Religare, a Ranbaxy promoter group company, is one of the leading integrated financial services institutions of India.

The company offers a diverse bouquet of services broadly verticals – Retail, Wealth Management and the Institutional Spectrums.

The services range from Equities, commodities and insurance broking to wealth advisory, portfolio management services, personal financial services , investment banking and institutional broking services.

Religare Enterprises limited is the holding company for all the businesses being operated and structured through various subsidiaries. Religare`s retail network spreads across the length and breadth of the country with its presence in more than 1200 locations across more than 375 cities and towns.

Having spread itself fairly well across the country and with the promise of not resting on its laurels, it has also aggressively started eyeing global geographies.

Vision Statement:

To build Religare as a globally trusted brand in the financial services domain and present it as the “Investment Gateway of India”

Mission Statement:

To provide financial care driven by core values of diligence and transparency.

Brand Essence:

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Diligent, dynamic, and ethical processes for wealth creation.

Company Overview:

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Spectrum of services offered by Religare:

Retail Spectrum Institutional Spectrum Wealth Spectrum

To cater to a large number of retail clients by offering all products under one roof through branch network and online mode.

To forge and build strong relationships with corporate clients and Institutions.

To provide customized wealth advisory services to High Net worth individuals(HNIs)

Equity and Commodity Trading Institutional Broking Wealth Advisory ServicesOnline Investment Portal Investment Banking Portfolio Management Servicespersonal Financial Services Merchant Banking Priority equity client ServicesMutual Funds Transaction Advisory Arts Initiative

Insurance Corporate FinanceInternational Advisory Fund Management Service

Savings Insurance Solutions Personal Credit Personal Loans Loans against Shares

Why should investors choose Religare?

It is the Ranbaxy promoter group company.

No Annual maintenance charges for their online broking services.

Diverse portfolios and a lot of products under one roof.

Has one of the best brokerage plans.

Attractive brand.

Relationship managers attached to customers.

Equity research team (one of the best in the market).

Controlled and low cost service culture.

Large volume processing capability

Adherence to strict time schedule

Expertise in coordinating multi-location responses.

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How Religare achieved it?

The core competency of Religare lies in the following points due to which it enjoys a competitive edge over its

competitors. The following culture adopted by Religare makes it all time favorite among its clientele:

Professionally managed by qualified and trained manpower.

Uniquely structured in-house software and hardware department

Query handling within 48 hrs.

Strong secretarial, accounting and audit systems.

Unique work culture of working 7 days a week in 3 shifts.

Unmatched network spreading all over India.

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Phase I:

NIFTY Calculation Methodology

NIFTY is calculated using the "Free-float Market Capitalization" methodology. As per this methodology, the level of index at any point of time reflects the Free-float market value of 30 component stocks relative to a base period. The market capitalization of a company is determined by multiplying the price of its stock by the number of shares issued by the company. This market capitalization is further multiplied by the free-float factor to determine the free-float market capitalization.

The base period of NIFTY is 1978-79 and the base value is 100 index points. This is often indicated by the notation 1978-79=100. The calculation of NIFTY involves dividing the Free-float market capitalization of 30 companies in the Index by a number called the Index Divisor. The Divisor is the only link to the original base period value of the NIFTY. It keeps the Index comparable over time and is the adjustment point for all Index adjustments arising out of corporate actions, replacement of scripts etc. During market hours, prices of the index scripts, at which latest trades are executed, are used by the trading system to calculate NIFTY every 15 seconds and disseminated in real time.

Understanding Free-float MethodologyConcept:

Free-float Methodology refers to an index construction methodology that takes into consideration only the free-float market capitalization of a company for the purpose of index calculation and assigning weight to stocks in Index. Free-float market capitalization is defined as that proportion of total shares issued by the company that are readily available for trading in the market. It generally excludes promoters' holding, government holding, strategic holding and other locked-in shares that will not come to the market for trading in the normal course. In other words, the market capitalization of each company in a Free-float index is reduced to the extent of its readily available shares in the market.

Major advantages of Free-float Methodology:

A Free-float index reflects the market trends more rationally as it takes into consideration only those shares that are available for trading in the market.

Free-float Methodology makes the index more broad-based by reducing the concentration of top few companies in Index. For example, the concentration of top five companies in NIFTY has fallen under the free-float scenario thereby making the NIFTY more diversified and broad-based.

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A Free-float index aids both active and passive investing styles. It aids active managers by enabling them to benchmark their fund returns vis-à-vis an investable index. This enables an apple-to-apple comparison thereby facilitating better evaluation of performance of active managers. Being a perfectly replicable portfolio of stocks, a Free-float adjusted index is best suited for the passive managers as it enables them to track the index with the least tracking error.

Free-float Methodology improves index flexibility in terms of including any stock from the universe of listed stocks. This improves market coverage and sector coverage of the index. For example, under a Full-market capitalization methodology, companies with large market capitalization and low free-float cannot generally be included in the Index because they tend to distort the index by having an undue influence on the index movement. However, under the Free-float Methodology, since only the free-float market capitalization of each company is considered for index calculation, it becomes possible to include such closely held companies in the index while at the same time preventing their undue influence on the index movement.

Globally, the Free-float Methodology of index construction is considered to be an industry best practice and all major index providers like MSCI, FTSE, S&P and STOXX have adopted the same. MSCI, a leading global index provider, shifted all its indices to the Free-float Methodology in 2002. The MSCI India Standard Index, which is followed by Foreign Institutional Investors (FIIs) to track Indian equities, is also based on the Free-float Methodology. NASDAQ-100, the underlying index to the famous Exchange Traded Fund (ETF) - QQQ is based on the Free-float Methodology.

Definition of Free-float:

Share holdings held by investors that would not, in the normal course come into the open market for trading are treated as 'Controlling/ Strategic Holdings' and hence not included in free-float. In specific, the following categories of holding are generally excluded from the definition of Free-float:

Holdings by founders/directors/ acquirers which has control element Holdings by persons/ bodies with "Controlling Interest"

Government holding as promoter/acquirer.

Holdings through the FDI Route

Strategic stakes by private corporate bodies/ individuals

Equity held by associate/group companies (cross-holdings)

Equity held by Employee Welfare Trusts

Locked-in shares and shares which would not be sold in the open market in normal course.

The remaining shareholders would fall under the Free-float category.

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Determining Free-float factors of companies:

NSE has designed a Free-float format, which is filled and submitted by all index companies on a quarterly basis with the Exchange. (Format available on www.NSEindia.com) The Exchange determines the Free-float factor for each company based on the detailed information submitted by the companies in the prescribed format. Free-float factor is a multiple with which the total market capitalization of a company is adjusted to arrive at the Free-float market capitalization. Once the Free-float of a company is determined, it is rounded-off to the higher multiple of 5 and each company is categorized into one of the 20 bands given below. A Free-float factor of say 0.55 means that only 55% of the market capitalization of the company will be considered for index calculation.

Free-float Bands:

% Free-Float Free-Float Factor % Free-Float Free-Float Factor

>0 – 5% 0.05 >50 – 55% 0.55

>5 – 10% 0.10 >55 – 60% 0.60

>10 – 15% 0.15 >60 – 65% 0.65

>15 – 20% 0.20 >65 – 70% 0.70

>20 – 25% 0.25 >70 – 75% 0.75

>25 – 30% 0.30 >75 – 80% 0.80

>30 – 35% 0.35 >80 – 85% 0.85

>35 – 40% 0.40 >85 – 90% 0.90

>40 – 45% 0.45 >90 – 95% 0.95

>45 – 50% 0.50 >95 – 100% 1.00

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Index Closure Algorithm

The closing NIFTY on any trading day is computed taking the weighted average of all the trades on NIFTY constituents in the last 30 minutes of trading session. If a NIFTY constituent has not traded in the last 30 minutes, the last traded price is taken for computation of the Index closure. If a NIFTY constituent has not traded at all in a day, then its last day's closing price is taken for computation of Index closure. The use of Index Closure Algorithm prevents any intentional manipulation of the closing index value.

Maintenance of NIFTY

one of the important aspects of maintaining continuity with the past is to update the base year average. The base year value adjustment ensures that replacement of stocks in Index, additional issue of capital and other corporate announcements like 'rights issue' etc. do not destroy the historical value of the index. The beauty of maintenance lies in the fact that adjustments for corporate actions in the Index should not per se affect the index values.

The Index Cell of the exchange does the day-to-day maintenance of the index within the broad index policy framework set by the Index Committee. The Index Cell ensures that NIFTY and all the other NSE indices maintain their benchmark properties by striking a delicate balance between frequent replacements in index and maintaining its historical continuity. The Index Committee of the Exchange comprises of experts on capital markets from all major market segments. They include Academicians, Fund-managers from leading Mutual Funds, Finance-Journalists, Market Participants, Independent Governing Board members, and Exchange administration.

On-Line Computation of the Index:

During market hours, prices of the index scrip’s, at which trades are executed, are automatically used by the trading computer to calculate the NIFTY every 15 seconds and continuously updated on all trading workstations connected to the NSE trading computer in real time.

Adjustment for Bonus, Rights and Newly issued Capital:

The arithmetic calculation involved in calculating NIFTY is simple, but problem arises when one of the component stocks pays a bonus or issues rights shares. If no adjustments were made, a discontinuity would arise between the current value of the index and its previous value despite the non-occurrence of any economic activity of substance. At the Index Cell of the Exchange, the base value is adjusted, which is used to alter market capitalization of the component stocks to arrive at the NIFTY value.

The Index Cell of the Exchange keeps a close watch on the events that might affect the index on a regular basis and carries out daily maintenance of all the 14 Indices.

Adjustments for Rights Issues: When a company, included in the compilation of the index, issues right shares, the free-float market capitalization of that company is increased by the number of additional shares issued based on the theoretical (ex-right) price. An offsetting or

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proportionate adjustment is then made to the Base Market Capitalization (see 'Base Market Capitalization Adjustment' below).

Adjustments for Bonus Issue: When a company, included in the compilation of the index, issues bonus shares, the market capitalization of that company does not undergo any change. Therefore, there is no change in the Base Market Capitalization, only the 'number of shares' in the formula is updated.

Other Issues:Base Market Capitalization Adjustment is required when new shares are issued by way of conversion of debentures, mergers, spin-offs etc. or when equity is reduced by way of buy-back of shares, corporate restructuring etc.

Base Market Capitalization Adjustment: (changes only in case of a new company or a rights issue)

The formula for adjusting the Base Market Capitalization is as follows:

New Market Capitalization

New Base Market Capitalization = Old Base Market Capitalization x ---------------------------------------

Old Market Capitalization

To illustrate, suppose a company issues right shares which increases the market capitalization of the shares of that company by say, Rs.100 crores. The existing Base Market Capitalization (Old Base Market Capitalization), say, is Rs.2450 crores and the aggregate market capitalization of all the shares included in the index before the right issue is made is, say Rs.4781 crores. The "New Base Market Capitalization” will then be:

This figure of 2501.24 will be used as the Base Market Capitalization for calculating the index number from then onwards till the next base change becomes necessary.

Criteria for Selection and Review of NIFTY Constituents

The scrip selection and review policy for NSE Indices is based on the objective of:

Improvement Transparency

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2450 x (4781+100)

-------------------------- = Rs.2501.24 crores

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Simplicity

Qualification Criteria:

The general guidelines for selection of constituent scrip’s in NIFTY are as follows:

A. Quantitative Criteria:

Final Rank:

The scrip should figure in the top 100 companies listed by Final Rank. The final rank is arrived at by assigning 75% weight age to the rank on the basis of six-month average full market capitalization and 25% weight age to the liquidity rank based on six-month average daily turnover & six-month average impact cost.

Trading Frequency:

The scrip should have been traded on each and every trading day for the last six months. Exceptions can be made for extreme reasons like scrip suspension etc.

Market Capitalization Weight age:

The weight of each scrip in NIFTY based on six-month average Free-Float market capitalization should be at least 0.5% of the Index.

Industry Representation:

Scrip selection would take into account a balanced representation of the listed companies in the universe of NSE. The index companies should be leaders in their industry group.

Listed History:

The scrip should have a listing history of at least 3 months on NSE. However, the Committee may relax the criteria under exceptional circumstances.

Beta

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Risk is an important consideration in holding any portfolio. The risk in holding securities is generally associated with the possibility that realised returns will be less than the returns expected.

Risks can be classified as Systematic risks and Unsystematic risks.

Unsystematic risks: These are risks that are unique to a firm or industry. Factors such as management capability, consumer preferences, labour, etc. contribute to unsystematic risks. Unsystematic risks are controllable by nature and can be considerably reduced by sufficiently diversifying one's portfolio.

Systematic risks: These are risks associated with the economic, political, sociological and other macro-level changes. They affect the entire market as a whole and cannot be controlled or eliminated merely by diversifying one's portfolio.

What is Beta?

The degree, to which different portfolios are affected by these systematic risks as compared to the effect on the market as a whole, is different and is measured by Beta. To put it differently, the systematic risks of various securities differ due to their relationships with the market. The Beta factor describes the movement in a stock's or a portfolio's returns in relation to that of the market return. For all practical purposes, the market returns are measured by the returns on the index (Nifty, Mid-cap etc.), since the index is a good reflector of the market.

Methodology / Formula

Beta is calculated as:

where,Y is the returns on your portfolio or stock - DEPENDENT VARIABLEX is the market returns or index - INDEPENDENT VARIABLEVariance is the square of standard deviation.Covariance is a statistic that measures how two variables co-vary, and is given by:

Where, N denotes the total number of observations, and and respectively represent the arithmetic averages of x and y.

In order to calculate the beta of a portfolio, multiply the weightage of each stock in the portfolio with its beta value to arrive at the weighted average beta of the portfolio

Standard Deviation

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Standard Deviation is a statistical tool, which measures the variability of returns from the expected value, or volatility. It is denoted by sigma(s) . It is calculated using the formula mentioned below:

Where, is the sample mean, xi’s are the observations (returns), and N is the total number of observations or the sample size.

The Concept of Impact CostImpact Cost

Introduction

Liquidity in the context of stock markets means a market where large orders can be executed without incurring a high transaction cost. The transaction cost referred here is not the fixed costs typically incurred like brokerage, transaction charges, depository charges etc. but is the cost attributable to lack of market liquidity as explained subsequently. Liquidity comes from the buyers and sellers in the market, who are constantly on the lookout for buying and selling opportunities. Lack of liquidity translates into a high cost for buyers and sellers.

The electronic limit order book (ELOB) as available on NSE is an ideal provider of market liquidity. This style of market dispenses with market makers, and allows anyone in the market to execute orders against the best available counter orders. The market may thus be thought of as possessing liquidity in terms of outstanding orders lying on the buy and sell side of the order book, which represent the intention to buy or sell.

When a buyer or seller approaches the market with an intention to buy a particular stock, he can execute his buy order in the stock against such sell orders, which are already lying in the order book, and vice versa.

An example of an order book for a stock at a point in time is detailed below:

Buy SellSr.No. Quantity Price Quantity Price Sr. No.

1 1000 3.50 2000 4.00 52 1000 3.40 1000 4.05 63 2000 3.40 500 4.20 74 1000 3.30 100 4.25 8

There are four buy and four sell orders lying in the order book. The difference between the best buy and the best sell orders (in this case, Rs.0.50) is the bid-ask spread. If a person places an order to buy 100 shares, it would be matched against the best available sell order at Rs. 4 i.e. he would buy 100 shares for Rs. 4. If he places a sell order for 100 shares, it would be matched against the best available buy order at Rs. 3.50 i.e. the shares would be sold at Rs.3.5.

Hence if a person buys 100 shares and sells them immediately, he is poorer by the bid-ask spread. This spread may be

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regarded as the transaction cost which the market charges for the privilege of trading (for a transaction size of 100 shares).

Progressing further, it may be observed that the bid-ask spread as specified above is valid for an order size of 100 shares upto 1000 shares. However for a larger order size the transaction cost would be quite different from the bid-ask spread.

Suppose a person wants to buy and then sell 3000 shares. The sell order will hit the following buy orders:

Sr. Quantity Price

1 1000 3.50

2 1000 3.40

3 1000 3.40

while the buy order will hit the following sell orders :

Quantity Price Sr.2000 4.00 51000 4.05 6

This implies an increased transaction cost for an order size of 3000 shares in comparison to the impact cost for order for 100 shares. The "bid-ask spread" therefore conveys transaction cost for a small trade.

This brings us to the concept of impact cost . We start by defining the ideal price as the average of the best bid and offer price, in the above example it is (3.5+4)/2, i.e. 3.75. In an infinitely liquid market, it would be possible to execute large transactions on both buy and sell at prices which are very close to the ideal price of Rs.3.75. In reality, more than Rs.3.75 per share may be paid while buying and less than Rs.3.75 per share may be received while selling. Such percentage degradation that is experienced vis-à-vis the ideal price, when shares are bought or sold, is called impact cost.

Impact cost varies with transaction size.

For example, in the above order book, a sell order for 4000 shares will be executed as follows:

Sr. Quantity Price Value

1 1000 3.50 3500

2 1000 3.40 3400

3 2000 3.40 6800

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Total value 13700

Wt. average price 3.43

The sale price for 4000 shares is Rs.3.43, which is 8.53% worse than the ideal price of Rs.3.75. Hence we say "The impact cost faced in buying 4000 shares is 8.53%".

Definition

Impact cost represents the cost of executing a transaction in a given stock, for a specific predefined order size, at any given point of time.

Impact cost is a practical and realistic measure of market liquidity; it is closer to the true cost of execution faced by a trader in comparison to the bid-ask spread.

It should however be emphasized that:

(a) impact cost is separately computed for buy and sell(b) impact cost may vary for different transaction sizes (c) impact cost is dynamic and depends on the outstanding orders(d) where a stock is not sufficiently liquid, a penal impact cost is applied

In mathematical terms it is the percentage mark up observed while buying / selling the desired quantity of a stock with reference to its ideal price (best buy + best sell) / 2.

Example A:

ORDER BOOK SNAPSHOT

Buy Quantity Buy Price Sell Quantity Sell Price

1000 98 1000 99

2000 97 1500 100

1000 96 1000 101

TO BUY 1500 SHARES

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Phase II:Pull Marketing Strategy

(Marketing Plan).

Branch: Rajouri Gardens

Process:

1. Segmentation

2. Target Market Selection.

3. Positioning the Brand and the Branch.

4. Selection of Various Tools for Various Segments.

5. Analysis of the design and Effectiveness of Tools in the local market.

6. Define how Value Creation and Delivery Sequence would differentiate between

choosing the value and communicating the value.

7. The Pull Strategy Designing.

8. The Pull Strategy Implementation.

Segmentation:

Branch: Rajouri Garden.

Initially we divide the consumer market in Rajouri Garden into 4 basic categories:

1. Potential New Entrants.

2. Existing Investors and Customers.

3. Present Investors which are not active.

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4. Brand Switchers (Opportunity Cost Effect).

Target Market:

1. A market which consists of 10% on HNW customers and residing on mainly a

concentrated mix of high middle class population.

2. A posh residency and commercial retail area with a huge consumer potential.

Positioning:

1. In amidst of a financial repercussion and global recession we are trying to Position our

Brand and Branch as a change which has arrived in Rajouri Garden.

2. A Change which reflects a more efficient and secure way of Investment and Equity,

Commodity Trading on the Strength of a world class Equity Research Center and a

Unique mix of Investment products diversified both horizontally and vertically into

product lines.

3. A Value positioning of the Branch as one of its kind in Delhi, Offering a mix of all possible

(life insurances), Online Retail Equity and Commodity Trading Products.

4. A Brand Proposition of making consumer identifies the Branch and the Brand as a

revolution in terms of Corporate Governance, Customer Satisfaction and Product value.

Tools to be used:

1. Identification of MK opportunities or (SWSPS).

2. Promotion – Advertorials , SMS campaigns

3. Paper Mail - Huge Hit around all the sectors in India Esp Banking..

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4. Word of mouth advertising.

5. Strategic business alliances ( New Hit )

6. Promotion from the building.

7. Pamphlet distribution.

8. Hoardings and Banners at relevant Metro Stations.

Company, Product and Market Definition:

Company Product Definition Market Definition

Religare Securities We sell Life Insurances,

Consumer Finance, Equity

and Commodity Trading

Instruments.

We market Trust, Corporate

governance and Consumer

Value.

Tools Utilized:

Banners at the METRO

Advantages:

More than 12 lakh people commute by Delhi metro on a daily basis.

The Brand gets exposure of 17.30 hrs daily (6:00 am to 11:30 pm)

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Target Metro Stations (Rajouri Garden, Tagore Garden)

Costing:

a) Rajouri Garden

Station: Rajouri Garden

Media : Platform

Size : 10 x 5 sq ft. , Backlit

Discounted rates for one month : Rs.28000

Avg. Rate per Sq. ft : Rs.560

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Printing Charges: Rs.20 per Sq.ft (Rs.1000)

Frontlit Charges: Rs.10 per Sq.ft (Rs.500)

Total Cost for 1 Month: Rs.29500.

Avg Cost per passenger: .10 paise.

b) Ramesh Nagar

Station: Rajouri Garden

Media : Platform

Size : 10 x 5 sq ft. , Backlit

Discounted rates for one month : Rs.25000

Avg. Rate per Sq. ft : Rs.500

Printing Charges: Rs.20 per Sq.ft (Rs.1000)

Frontlit Charges: Rs.10 per Sq.ft (Rs.500)

Total Cost for 1 Month: Rs.26500.

Avg Cost per passenger: .08 paise.

TRAIN DETAILS:

Each train comprising of 4 cars

2 motorized (1st and last ) and 2 trailers

How Spacious:

Each coach has seating for 60 passengers,

With space for 325 standing passengers

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How Often:

Availability – Avg of every 6 minutes.

Avg of total no of passengers travelling: 5, 39,000.

Sample:

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Promotion from the building:

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Paper Mail Design:29

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Pamphlet Design 1:30

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Pamphlet Design 2:

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Metro Banner1:

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Metro Banner2:

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Religare, ICICI Direct

COMPARITIVE MARKET ANALYSIS

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SWOT (ICICI DIRECT)

Strengths• Big Brand name, the customer knows the brand and trusts the brand.

• Huge market capitalization, in terms of branches, volumes and products.

• Very Diverse products and is a very trusted name in the financial sector.

• Huge budget capacity for advertising, promotion and personal selling adding to unparalleled

advantage.

Weaknesses• Non Performing website (Often down during market hours)

• Very high comparative brokerage

• Client databases and portfolios not updated on time

• Voted as the worst site for trading by their customers.

• Lot of hidden charges.

• No relationship Managers for customers

• Non satisfying service in relation to the Brand.

Opportunities:• To gain and build on the value system and create a perfect example of corporate social responsibility.

• To exploit the trust and the brand value to full potential and build a more customer satisfying process.

Threats :• Companies like religare/Indiabulls are fiercely competing for supremacy even though 50%

Of the market share is owned by ICICI securities.

• Customers are slipping from the kitty due to high costs and a comparative low cost of shifting

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To companies like Religare and Indiabulls.

SWOT ANALYSIS (RELIGARE)STRENGTHS

 It is the Ranbaxy promoter group company.

 No Annual maintenance charges for their online broking services.

 Diverse portfolios and a lot of products under one roof.

Has one of the best brokerage plans.

Attractive brand.

Relationship managers attached to customers.

Equity research team (one of the best in the market).

WEAKNESS

It has changed its name from FORTIS to RELIGARE where the maximum customers don’t

know about this.

Non performing website as reported by customers.

Customer satisfaction on customer care calls is non satisfactory and often termed as

“unprofessional”. 

OPPORTUNITY

 Financial services sector in India is growing by leaps and bounds.

 In the upcoming days RELIGARE is coming up with their own mutual fund and Banking.

THREATS

 Cut-throat competition from corporate big houses like Reliance and ICICI

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 As they have changed the name of their company the customer still did not know about

RELIGARE.

Products with ReligareReligare products are well known for Online Trading,

Offline Trading, Portfolio Management Services,

Commodity Trading and Intuitional Broking services.

Comparative advantages of products:

Fixed Brokerage and Exposure

Call center support provided for trading, back-office and IT support

Minimum branch level support

Fully automated processes

Feature-rich software

Interest on cash margin deposited with Religare

Target Group – Mass Market

USP:

Interest on cash margin deposited with Religare

Better quality product at competitive brokerage

 

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Consumer behavior on recession Investing• The consumer wants to invest with a long-term strategy instead of

Short-term. Short-term investing is for those people, who are game for

Day trading in equity markets.

• Consumers are preferring low-risk investment such as cash deposits,

Market money funds and property.

• In commodities: anything except gold a it has been to volatile and is directly related to the US$. • Educated consumers believe that this recession n is an opportunity

to invest in undervalued stocks and land prices.

• Whereas on the other hand uneducated consumers believe that

it`s a time when you need to save your money and if they will invest

they will loose their hard earned money.

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