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1. Equity Market
By Hitesh Mali/ M.N.Jayprakash
Vice President of Motilal Oswal
 What is Equity?
 Features
 Entitled to a portion of the company’s profits
share and claim on assets
 Tradability
 Limited Liability

2.  Equity is Based on
 Indian Growth Story
 Indian Stock Market
 Demate Accounts
 NSDL (National Securities Depositories Ltd)
 Investors Accounts – 11966928
 Dp Service Center - 13969
 CDSL (Central Depositories Securities Ltd)
 Investors Accounts – 7862627
 Dp Service Center - 10675

3. Low participation is also a Growth
Opportunity in Equity
 Equity - 11728  Equity - 65000
 Insurance - 19502  Insurance - 53860
 Mutual Fund – 2219  Mutual Fund – 11482
 FY 2010  FY 2020

4. The Big Opportunity in Equity
Country Investors Population %
China 152 1,325 11%
Korea 4.6 47 10%
India 16 1,190 1%

5. Asset Classes in India
Bank Deposit/FD Gold Silver
Real Estate
Equity
Player In Market
Regional Broker Bank Broker
Discount Broker Advisories

6. Intermediaries Comes in Various Shapes & Size
Intermediary Advantages Disadvantages
1. Agent 80% to 90% Personalized service,
comes & picks up your
Cannot advice across
multiple asset classes
form as & when you
wish low cost service
provider
2. Internet Ease of transacting
anytime, anywhere in
No personal touch
the globe
3. Pure Advisor No blas towards products For execution, you have
since he/she does not to approach someone
sell them else
4. Financial Planner Well trained to after you
advice across multiple
If your portfolio size is
small, you may not be
asset classes able to afford him
5. Brokerage House Large organization with
strong research
Lacks personal touch
relationship managers
/Bank capabilities ability to could change very oftern
advice across assets

7. Wealth Creation Cycle
 Research Advisory Distribution
Process
Excellent Technology Operation
Employment Customer

8. Evolution from Broker to Financial
Planner
 Position from a one stop financial service
destination
 Focus on grater wallet share
 Standalone brokers may become defunct
in the next decade

9. Why we need Stock Market???
Stock Market
Common player for
Capital buyers & Sellers
Requirement Requirement of capital
of a Company Providers
Long term Long term/Short/Medium
Sources of Investor can convert their
new capital stock into cash
for
companies

10. Ministry of Finance
IRDA SEBI
RBI
Insurance Stock Exchange/
Banks/ NBFC
Broker/ Advisors

11. What are Market Activities???
NSDL
DP DP
CC
Brokers Broker
Sellers Buyers Sellers

12. Derivatives????
Future Option
Unlimited profits & Call Put
Unlimited Loses
Buyer
Limited losses &
Buyer
Seller Unlimited gains Seller
Limited Loses &
Unlimited gains Limited gains & Unlimited gains
Unlimited Loses & Limited loses

13. Investors Trader
1. Long term 1. Short term
2. Follows Fundamental 3. Follows Technical
Analysis Analysis
3. Stay invested as long 3. Trades with sharp
as home is continuing loses & price Target

14. Debt Market
- By Abhiroop Mukhrajee
Fund Manager Motilal Oswal
 Case for Government Borrowing
 Fund required to run operations of
government
 Salaries of government employees
 Day to day activities
 Capital expenditure

15. Types of Debt Securities
 Government Securities
 Long term market borrowing of the government
 Largest segment of the debt market
 Issued by RBI & Subscribed banks, primary dealers &
Institutions
 Corporate Bonds
 All listed debt securities issued by banks, PSU
undertakings, Municipal Corporations, Bodies
Corporate & Companies
 Issued by the above entities mostly through private
placement route

16. Bond Price Dynamics
 Bond market prices are inversely related to the market
yields, when market yields go up, bond market price
falls & Vice Versa
 The sensitivity of bond’s market price to change in yield
is given by its modified duration, higher the duration of
the bond, more sensitivity it is to yield changes, vice
versa

17. Factors Affecting Interest Rates
 Macro & Micro economic scenarios
 Inflation expectations
 Money supply in the system
 Monetary & Fiscal policies
 Global economic conditions
 Crude oil prices
 Currency situation

18. Structure of Debt Market
 Government Market
 Money Market
 Corporate Bonds
 Derivatives

19. Government Bonds
State Government
Central Government
State
Development
Loan
T-Bill CMB FRB
G-Sec 10yr
90,182, 90,182, Upto
10 yr
364 days 364 days 10yr

20.  Money Market  Corporate Bonds
 Call Money  Corporate Bonds
 CBLO
 Commercial Papers
 REPO
 Certificate of Deposits
 Certificate of Deposits
 Commercial Papers

21. Derivatives
 Derived from another Security or overnight rates
 Interest rate swaps
 Traded in OTC market
 Used mainly as tool of hedging against interest
rate risks
 Tenures – 3m, 6m, 1yr, 3yr, 5yr, 7yr & 10yr
 1 to 5 yr segments are the most actively traded

22.  Trading
 Done by telephonic negotiation between
counterparties (OTC Market)
 Order Matching Reported on the Negotiated Dealing
System
 Risk involved in Debt Market
 Credit risk or Issuer risk
It is the risk that the issuer will not pay the coupon
income and/or the maturity amount on the specified
dates.
 Interest rate risk
Interest rate risk affects investors in bonds who do
not plan to hold till maturity

23.  www.ccilindia.com– Debt Market
 www.nseindia.com – Equity Market
 Thank You
 Krunal & Raxit