The Hindu Business Line : B. Venkatachalam, Managing Director, Hexagon Capital Markets Ltd; Indian Academy School of Management Studies, Bangalore

Industry & Economy - Education
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B. Venkatachalam, Managing Director, Hexagon Capital Markets Ltd; Indian Academy School of Management Studies, Bangalore

Mr B. Venkatachalam, Managing Director, Hexagon Capital Markets Ltd, interacting with students at the Indian Academy School of Management Studies, Bangalore, at a guest lecture organised by BL Club recently.

Our Bureau

Bangalore, April 30 The present generation of students are aware of how a stock market works and a few have invested in shares too. This was evident at the BL Club guest lecture organised for the management students of the Indian Academy here on Tuesday.

While delivering the lecture on ‘Indian capital market – the present scenario’, Mr B. Venkatachalam, Managing Director, Hexagon Capital Markets Ltd, expressed happiness over the level of awareness among students and advised them to invest in stocks wisely.

Mr Venkatachalam began his presentation by providing information on various investment options that are in vogue. “Stocks are a unique kind of investment because they allow you to take partial ownership of a company. Because of this, the returns are perceived to be higher and investing in stocks is thought to be a wise way of earning money,” he said.

He, however, had a word of caution for the students. “Even after years of experience in trading shares, the chances of my making mistakes while buying or selling are the same as yours.” Mr Venkatachalam explained to the students the differences between primary and secondary markets. “A market is primary if the proceeds of sales go to the issuer of the securities sold. It means a market for new issues of securities. This is part of the financial market where enterprises issue their new shares and bonds. It is characterised by being the only moment when the enterprise receives money in exchange for selling its financial assets. The secondary market is one where securities are traded after they are initially offered in the primary market. Most trading is done in the secondary market. It is trading in previously issued financial instruments in an organised market.”

Mr Venkatachalam dwelt at length on technical and fundamental analysis. “Technical analysis is a method of evaluating future security prices and market directions based on statistical analysis of variables such as trading volume, price changes, and so on to identify patterns. The analysis includes studying price movements and trading volumes to determine patterns such as Head and Shoulder Formations and W Formations. Fundamental analysis looks at a share’s market price in light of the company’s underlying business proposition and financial situation,” he explained.

Mr M. K. Manoharan and Mr Suryanarayana, faculty members of Indian Academy were present.

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