Name: Niraj Thakur PRN: 17021141123

Mobile Number: 9542334972 E-mail Id: 17021141123@sibmhyd.edu.in

SUMMER INTERNSHIP PROGRAM

Internship Proposal

I. Internship Proposed:
Title of the internship project – Analysis of Equity Derivative Market in India using Nifty 50
companies.
The internship project aims at performing an analysis of equity derivative market in India with the
help of Nifty 50 companies, the emergence of derivative market in India and its future prospects.
The analysis on the topic will help in understanding the internal structure and stragagies followed by
Reliance Securities while structuring the fund, choosing the best option and offering best option from
the available, and managing their portfolio. It will also help the company regarding effectiveness of
providing best profit avenues to its clients.
II. Description of Internship in brief:
The primary work starts with the knowing the emergence and growth of the market for derivative
instruments and the willingness of risk averse economic agents to guard themselves against
uncertainties arising out of fluctuations in asset prices. Different instruments offered in the derivative
market, trading mechanism of each instrument and what are the different requirements to trade in each
segment of derivative market. How these instrument help to minimize the risk or avoid it?
Understanding mainly the future and option segment and what is the margin required and calculated.
Increased financial risk causes losses to an otherwise profitable organisation. This underlines the
importance of risk management to hedge against uncertainty. Derivatives provide an effective solution
to the problem of risk caused by uncertainty and volatility in underlying asset. Derivatives are risk
management tools that help an organisation to effectively transfer risk. Derivatives are instruments
which have no independent value. Their value depends upon the underlying asset. The underlying
asset may be financial or non-financial.
The National Stock Exchange of India Limited (NSE) commenced trading in derivatives with the
launch of index futures on June 12, 2000. The futures contracts are based on the popular benchmark
Nifty 50 Index. The NIFTY 50 is a diversified 50 stock index accounting for 12 sectors of the
economy. It is used for a variety of purposes such as benchmarking fund portfolios, index-based
derivatives and index funds. NIFTY 50 is owned and managed by India Index Services and Products
Ltd. (IISL). IISL is India's specialised company focused upon the index as a core product.
III. Objective of the Internship:

• Before doing an analysis on derivative market, it’s better to know how those avenues of
investment arose, why people felt the need for derivative market, how derivative market is
used to hedge risks, what are different instruments available and which option is mostly
traded in India.
• Purpose of derivatives market in India and its different instruments.
• To know how derivatives instruments are useful for hedging.
• How margin is calculated.
• Analysing the performance of Nifty 50 companies.

IV. Action Plan:

1. Understanding the concept of derivatives, its types and working.
2. Understanding margin required for each stock in Nifty 50 companies (April series, May
Series and June series)
3. Learning about Nifty 50 companies, keep daily watch on the market movement and how its
price get affected by internal and external factors.
4. Learning and understanding different concepts while trading in derivative segments.
5. Finding out and understanding the procedure followed in Reliance Securities right from the
beginning in advising and investing client’s money in different stocks in F&O.

V. Schedule:
MILESTONES EXPECTED WEEK OF COMPLETION
Research objective, Methodology, Scope and 1st week
Limitations. Understanding the futures market.
Study on derivative market industry and its 2nd week
mechanism. Calculation of margin for derivative
futures for April Series
Understanding the internal controls(procedure)
while investing in Reliance Securities 3rd & 4th week
Understanding the option market. 5th week
Individual mutual fund performance analysis 6th & 7th week
Real Time trading mechanism 8th week
Above all, keeping daily watch on market performance, price movement of different stocks and
factors influencing such movements. Daily stock in focus at Reliance securities, positional picks,
intraday picks.

VI. Limitations:
1. The whole project has been done on the basis of data collected from different sources like
NSE, BSE, etc, also provided by the company, so some part of data not been given access due
to confidential policy.
2. Different broker companies have their own technical analysis pattern. Hence, this project
would be based on the performance analysis of Reliance securities.
 3. Considering stock market follows all general assumption, but still the market fluctuations are
systematic in nature

Faculty Guide:
Name: Mr. Hariprasad Soni
Phone: +91 9948872056
E-Mail: hr.soni@sibmhyd.edu.in
Company Guide:
Name: Mr. Ashok Maddi ( Relationship Manager )
Phone: +91 40 40177713
E-Mail: ashok.maddi@relianceada.com

Date: 25th April 2018 Signature of the Student

(Niraj Thakur)