Right from my childhood days, the term "Finance" has always fascinated me. My curious mind always used to wonder what's so important about this word that every individual responsible adult uses this word with a fret, Hence i wanted to decode this terminology all together and see why this word brings constant distress and panic on everyone's face. Thankfully after 25 long years when i decided to go for MBA i got the opportunity to blend with this terminology. I was exuberant on getting opportunity to work as an intern in JM Financial Services Ltd. , thanks to the summer internship program i was getting a chance to develop my skills in Finance as well as Investment world.
In this two month period of internship program, as a equity research intern with proficient people around me i got to learn various approaches and techniques to understand equity market, the knowledge and guidance from my mentor during internship period helped me to up-skill myself in investment and equity field. JM Financial had various verticals like Potfolio management, Sales, Wealth management etc. The people there were helpful and kind enough to help me gain knowledge about majority of products and verticals that JM Financial operates on . My role as a Equity research intern was to analyse the market using two techniques namely Fundamental analysis and Technical analysis and make Equity research reports based on the analysis made. I had to make Equity research reports on direct equity shares and sectoral report. Using fundamental analysis and under that either taking Top down approach (concentrating more on Macro-economic factors) or Bottom Up approach (concentrating more on Micro-Economic factors ) and Technical analysis (mostly for weekly or daily reports) i had to make the detailed report for a sector or a particular stock.
Stocks are volatile instruments whose prices change everyday. There are numerous reasons which explain the behaviour of stock prices. To start with, you can think of market forces i.e. theory of demand and supply. If the number of people who want to buy a stock are more than those who want to sell it, then the price of stock rises. if the investors come across a positive news about a company like growth/expansion plans, projects approval by the government, the stock prices shall rise. I got to learn various methods to know worth of investments like DCF valuation, Comparable company analysis, various Financial Ratios etc.
The most interesting thing i got to know during my internship is that a Hindu priest used to come every friday in the office to do puja in trading room. When i asked other colleagues, they said it was common in all the companies which deals in trading. But the best part was every friday we used to get different varieties of sweets like Gulab Jamun, Rosh Gulla, Kheer etc. and every alternate Friday's we used to have team outings to eat various savories in Church Street road which was just few blocks away from my office. Overall my Internship experience was very exemplary.