SECURITIES ANALYST

The economic growth and liberalization in India has had a positive effect on the capital markets as well. As the stock markets boom, more and more people tend to invest in the capital markets. The investors may take their own decisions regarding which securities to buy or hold or sell, or they may consult their stockbrokers for advice. The stockbroker utilizes the expertise of the research department of his firm to provide this kind of information and the people involved in such research are called securities analysts or market analysts.

The job of a securities analyst is to research and evaluate companies, find out their profitability, look for indications of growth and expansion, project the company's future earnings and on the basis of their observations, make recommendations to clients on which securities to buy or sell.




Educational Qualifications: The eligibility for entering this field is an MBA. The field is also open to candidates with a bachelor's / masters degree and experience in the financial services industry or statistical research. Trainee positions are available to candidates with bachelor's degree in Business Administration, Finance or Economics or those with post graduate degree in Commerce. Although there is no mandated training programme for analysts, it is often required that analysts earn an MBA if they do not possess one.

Personal Qualifications: Should have computer, analytical, mathematical and problem solving skills. Should have excellent presentation skills and self-confidence. Maturity as well as the ability to work alone is also a must. Should also posses skills like strong attention to detail. Understanding of tax laws, money markets and economy in general. People skills and salesmanship are also important.



A securities analysts' job involves a lot of reading, research, meeting people, writing, etc. The analyst has to study company history, and about its products and services. He or she may do so by referring books and trade publications, financial reports, by studying the public records of the company, or by participating in public conference calls or using reference services like Standard and Poor's Outlook, etc. Based on this preliminary research, the analyst may shortlist companies in a particular industry he or she is dealing with and then proceed to study the same thoroughly. Analysts usually study an entire industry, observing and assessing the current trends in business practices and industry competition.

They must keep abreast of new regulations and policies that may affect the industry as well as monitor the changes taking place in the economy, as such happenings that affect the earnings of the companies.

The field of securities research is a discipline within the financial services industry and securities analysts are also known as research analysts, securities analysts, market analysts, financial analysts or simply as analysts. The job prospects of securities analysts are tied to the stock market with the bull market leading to an increase in hiring people and bear markets causing layoffs. Analysts find employment in brokerage firms, securities firms, mutual and pension funds, investment banks, merchant banks etc. They can also start their own consultancies. Securities analysts may be employed as Sell Side Analysts- such analysts work for broker-dealers and indirectly for broker dealer trading customers, or as Buy Side Analysts- who work for institutional investors such as hedge funds, mutual funds, pension funds, proprietary trading operation of banks and brokers, endowments and insurance companies. Some also work as independent analysts, i.e they sell research to buy side or sell side firms and they themselves do not engage in securities transactions.

Securities Analyst Mathematics Insurance Underwriters Auditing Some of the major players in trading and stock broking in India include companies like Kotak Securities Ltd, Angel Broking, Karvy Stockbroking, Anand Rathi, Geojit Financial Services Ltd, JRG Securities Ltd, etc. The big international players in this field are Bloomberg, Thomson-Reuters and financial news organizations like Dow Jones Newswires. These companies employ analysts in their research departments. In India, Securities and Exchange Board of India (SEBI) is the authorized body which regulates the operations of stock exchanges, banks and other financial institutions. Similarly, other countries have their own regulating body and licensing authorities which regulate the operations of capital markets and finance professionals in the respective countries.

An ideal candidate for the job of securities analyst should have a strong sense of purpose. They should be able to handle heavy work load, prioritize and complete work under strict deadlines, work as part of a team and be able to keep abreast of new technologies and developments in this field. With a lot of scope for growth and specialization the job offers new challenges everyday and is quite prestigious and well paying too. The eligibility for entering this field is an MBA.

Knowledge of subjects like engineering, biotechnology, pharmacy, etc in addition to subjects like accountancy, economics and statistics gives analysts an upper edge in their field as this gives them a better understanding of those fields and can help them in making investment decisions in those sectors. Analysts should have computer, analytical, mathematical and problem solving skills. The job of an analysts is such that they are required to explain their findings and recommendations to others and thus, should have excellent presentation skills, self-confidence, maturity as well as the ability to work alone.

An analyst should also posses skills like strong attention to detail, a drive for research, an understanding of tax laws, money markets and economy in general. MBA's and post graduates with professional qualifications can earn Rs.12000 and above at the entry level. Many employers may give bonuses which can be equal to or double the beginning of the analyst's salary. This is actually the performance based commission given in addition to the salary. The earnings of top professionals can go up to lacs and crores.