REPORT PREPARATION

CONTENTS OF THE REPORT

1. Report Title Page as per format in Annexure I
2. Declaration from the Candidate as per format in Annexure II
3. Certificate from Company (if applicable) / Supervisor as per format in Annexure III
4. Acknowledgements
5. Table of Contents as per format in Annexure IV
6. Chapter 1: Introduction to the study
a. Research Background
b. Contributions
7. Chapter 2: Company Profile / Industry Profile
8. Chapter 3: Literature Review
9. Chapter 4: Research Methodology as per format in Annexure V
10. Chapter 5: Data Tabulation, Analysis and Results
11. Chapter 6: Findings of the study
12. Chapter 7: Recommendations of the study
13. Chapter 8: Limitations of the study
14. Chapter 9: Conclusions of the study
15. References as per format in Annexure VI
16. Research Progress Report
17. Questionnaire used

OTHER DETAILS
1. The last date for submission is 31st of March, 2010.
2. The printing of the report must be done on a watermarked paper as per the format in Annexure VII
3. The font used for printing the report is Arial / Calibri / Times New Roman. Font Size to be used is ’12
point’. Use ‘justify’ alignment of the paragraph. The double line spacing should throughout the
report. After each paragraph a line should be left blank and each paragraph should be ‘justify’
aligned.
4. Spiral binding should be used in the preparation of the report.
5. Each Chapter should begin on a separate page
6. The report will be judged based on the quality of the report and not based on the volume / quantity
of the report.
7. The progress report should be included as a part of the report.
8. All the pages should be numbered
9. Printing should be done on both sides of the page
ANNEXURE I: REPORT TITLE PAGE

A RESEARCH REPORT

ON
CUSTOMER ATTITUDE TOWORDES THE INDIAN STOCK MARKET

Submitted in partial fulfilment for the award of the degree

Master of Business Administration

Chhattisgarh Swami Vivekanand Technical University, Bhilai

(Font: Arial, Size: 12, Bold)

Submitted by,

T .RAMA KRISHNA RAO

MBA – Semester 2nd

(Session 2009-10)

Approved By, Guided By,

DR. SUMITA DAVE Mr. MANOJ SHARMA
Head of the Department Professor MBA department
SSIMT BHILAI

Shri Shankaracharya Institute of Management and

Technology
Junwani, Bhilai (C.G.) - 490020
ANNEXURE II: DECLARATION BY THE CANDIDATE

I the undersigned solemnly declare that the report of the research work entitled CUSTOMER ATTITUDE

TOWORDES THE INDIAN STOCK MARKET is based on my own work carried out during the course of

my study under the supervision of Mr.MANOJ SHARMA.

I assert that the statements made and conclusions drawn are an outcome of my research work. I

further declare that to the best of my knowledge and belief the report does not contain any part of any

work which has been submitted for the award of MBA degree or any other degree/diploma/certificate in

this University or any other University of India or abroad.

_________________
(Signature of the Candidate)
T RAMA KRISHNA RAO
Enrollment No:
ANNEXURE III: CERTIFICATE FROM THE SUPERVISOR

This is to certify that the work incorporated in the report <Title of the report> is a record of research work
carried out by T RAMA KRISHNA bearing Roll No.: <> under my/our guidance and supervision for the part
fulfillment for the award of MBA Degree of Chhattisgarh Swami Vivekanand Technical University, Bhilai
(C.G.), India.

To the best of my knowledge and belief the thesis

i) Embodies the work of the candidate him/herself,

ii) Has duly been completed,

iii) Is up to the desired standard both in respect of contents and language for external viva.

______
___________
(Signature r)
Mr. MANOJ SHARMA
Professor MBA department
SSIMT BHILAI
ANNEXURE IV: TABLE OF CONTENTS (SAMPLE FORMAT)

Declaration by the Student

Certificate from the Supervisor / Company
Acknowledgments
Chapter 1. Introduction to the study
a. Research Background
b. Contributions
Chapter 2. Company Profile / Industry Profile
a. About the Company / Industry
b. The relation of work done in your study to the industry
Chapter 3. Literature Review
a. Related to the work done in your study
Chapter 4. Research Methodology
a. Objectives
b. Research Plan
c. Sampling Plan
d. Data Collection
e. Descriptive Statistics
Chapter 5. Data Tabulation, Analysis and Results
a. Type of Analysis used and Why
b. Results of the Analysis
Chapter 6. Findings of the study
Chapter 7. Recommendations
Chapter 8. Limitations
Chapter 9. Conclusions

References
Appendices
a. Research Progress Report
b. Questionnaire used
c. Any other appendix
ANNEXURE V: RESEARCH METHODOLOGY

The methodology section will consist of three sections.

Section A. The first section will describe the objectives of the study.
Section B. The second section will discuss about the research plan and sampling plan used in the study.
The following table can be taken as a guideline for preparing this section.

RESEARCH PLAN
Research Design: Descriptive

Research Method Used Survey

Research Technique Used Questionnaire

Data Collection (location) From Durg, Bhilai and Raipur

Sampling Plan Simple Random

Sample Size 50

The research should also present why he has chosen the design he has chosen. And he should also
write about something about the design / method / technique and sampling plan to support his
study. In any case the researcher should not write what he has not done in the study.

Section C. Section C will contain the demographic characteristics of the respondents. A sample is shown
below:

Measure Item Number of Respondents

0-20

Age 20-30

30-50

< 1 Lakh

Income 1-3 Lakhs

3-5 Lakhs

Total
ANNEXURE VI: REFERENCES

Citation from journals:

 G. D. Gopen and J. A. Swan, “The Science of Scientific Writing”, J. of American Scientist, vol. 78, pp.
550–558, 1990.
 C. H. Lee and Y. K. Lee, “An Adaptive Digital Image Watermarking Technique for Copyright
Protection,” IEEE Trans. on Consumer Electronics, Vol. 45, No. 4, pp. 1005-1015, November 1999.

Citation from proceedings of conferences/Seminars/Workshops:

 [A] C. K. Yang, D. C. Wu, C. S. Huang, “A study of Robust Watermarking Using Block Based and
Determinant Concept,” Proceedings of 2001 IPPR Conf. On CVGIP, Ken-Ding, Taiwan, pp.201-209,
2001
 [D] R. G. van Schyndel, A. Z. Tirkel, and C. F. Osborne, “A digital watermark,” Proc. IEEE Int.
Conference on Image Processing, vol. 2, pp. 86- 90, 1994.
 [F] D. Smith (Ed.), "Information Overload," Second International Workshop, IH'98, Portland, Oregon,
USA, April 1998, Proceedings. Lecture Notes in Computer Science, vol. 1525, Springer-Verlag (1998)
 Citation from Technical report:
 [AA] Caulkin, S. (Ed.). (1990). Drucker, Ohmae, Porter & Peters. Management briefings.
(Management Guides. Special report No.1202). London: The Economist.
 [BC] I. M. Boier Martin and D. C. Marinescu, Graphics for Macromolecular Crystallography and
Electron Microscopy, Technical Report, Department of Computer Sciences, Purdue University, CSD
TR-96-009, 1996.
 Citation from Patent:
 [DD] A. Sibbald, “Method and Apparatus for Fingerprint Characterization and Recognition using
Auto-correlation Pattern”, U S Patent 5633947, 1994.

Citation from Thesis:

 D. Kundur, “Mulitresolution Digital Watermarking: Algorithms and Implications for Multimedia
Signals,” Ph.D. Thesis, University of Toronto, 1999.

Citation from Books:

 D. Thompson, ed., The Concise Oxford Dictionary of Current English. Oxford, UK: Oxford University
Press, 9th ed., 1995, ISBN No.: 0987654.
 D. Lindsay, A Guide to Scientific Writing, Melbourne, Chapter 2, Australia: Addison Wesley Longman
Australia, 2nd ed., 1997, ISBN No.: 12345678.
 H. White. “Economic Prediction using Neural Networks: The case of IBM Daily Stock Returns”. In
Neural Networks in Finance and Investing, chapter18, pages 315–328. Probus Publishing Company,
1993, ISBN No.: 987789987.

Citation from Website:

 Anonymous, unZign, “Tool for Evaluating a Variety of Watermarks”, http://altern.org/watermark/,
(23rd September 1997)
 Publication of the University of Geneva (on digital watermarking): <http://
 cuiwww.unige.ch/˜vision/Publications/watermarking_publications.html> (Browsing Date: 4th
January 2006)
 ADEC (1999). ADEC Distance Education Consortium. [On-line]. Available: http://www.adec.edu/
[2000, January 17].
 CHAPTER 1
INTRODUCTION
ATTITUDE :-

Attitude means

Attitude of customer is very important for every business ,industry and any sector ,because investment of
customer in any product or services is depended on his attitude . So Customer Attitude is most necessary to
every organization to run business effectively . The present era is the era of the customer because if customer
have positive attitude towards the business i.e. business are in growth. If customer is negative attitude
toward the business i.e. business will definitely destroy. To satisfy the customer company provides the
various services to customer and try to aware customer about the product or services . Awareness of the
services is most necessary to the customer because without awareness it is not possible to use these services .
Today customer is the most important key of success of any organization . In present time organization
treated to customer as a part of the organization and tries to satisfied to customer by providing various
services and facilities to customer. and the customer perception Towards the any business ,industry , any
sector or product is also important because through the customer perception we know ,what image of our
product in customer mind and we know what is customer thinking about our product ,and then according to
that we modify our product or services .

INDIAN STOCK MARKET :-

The stock market in India has emerged as a lucrative investment platform for investors not only from
within the country but also overseas. The scenario at present is in an upbeat momentum and it is no longer
the panicky situation witnessed during the great downturn that turned many bankrupt, turned lakhs jobless,
and closed down many companies across the world. Today, as validated by the investments already
contributed in bulk by overseas investors besides NRIs and Indian investors, the stock market of India has
carved a niche amongst the leading markets in the world.

It should be borne in mind that risk is always there whether the share market is witnessing a boom or a fall.
Yet, if as an investor you are wise enough to take intelligent decisions, you can expect a good return in the
long term. Watching share market news regularly does add to the decision making factor. So update yourself
with all relevant information and news before you invest in the stock market.

The power behind experience cannot be negated or ignored. Experience does keep you at the winning edge as
you learn from your investment judgment. Whether it is gaining profits or incurring losses, with time, you
learn the nuances of the right investment in the market. The market cannot guarantee you profits. It wholly
depends on your choice. There are many instances of investors losing in expectation of profits. If you are still
a novice investor, make it a practice to watch market news regularly; this is one aspect that can help you take
the right investment decisions. Getting registered in an online brokerage platform can also prove helpful.
 CHAPTER2
INDUSTRY PROFILE
HISTORY:-
 Stock market - the Mind Game:
“The stock market is the game of the mind. You have to be mentally very strong and alert. You have to be
consistent in your investment; you should not change your mind after placing the stop loss order. You have
to put a stop loss order or cancel “

WHAT IS BULL & BEAR IN STOCK MARKET?

Until the early 1980s, market analysts heralded the arrival of a "Bull" market when the Dow Jones
Industrial Average reached 1,000 points. In a "Bull" market, the price per share rises and investors buy now
intending to resale later at a handsome profit. A "Bear" market, by contrast, produces lower share prices;
investors sell stocks or bonds intending to repurchase them later at a lower price. The Dow surpassed the
1,000 mark for the first time in 1972. A decade later it reached the unprecedented 2,000 mark before crashing
on "Black Monday," 19 October 1987, when it plummeted more than 500 points in a single day and lost 22
percent of its value.

India's economy, although still considered developing, is becoming one of the biggest in the world. This is
due largely to the country's technical prowess and attractiveness to overseas countries looking to outsource.
The country has a number of stock exchanges on which investors who wish to capitalize on India's growth
story can invest their money.

Types of Stock Markets in India

Bombay Stock Exchange:-The Bombay/Mumbai Stock Exchange is India's oldest. Commonly called the
BSE, it was established in 1875 and includes more than 6,000 stocks. The BSE is the largest stock exchange
in South Asia and is rapidly becoming one of the biggest in the world due to India's economic growth. The
most commonly watched BSE index is called the sensitive index, or Sensex, of 30 large stocks.

National Stock Exchange:-The National Stock Exchange, also located in Bombay/Mumbai, is India's other
dominant stock market along with the BSE. The rapidly growing exchange was founded in 1992. The NSE
and BSE are responsible for the vast majority of trading volume in India. The NSE's best-known index is the
S&P CNX Nifty, which comprises the stocks of 50 large companies.

Other Stock Exchanges:-Although the NSE and BSE are the two largest stock markets in India, there are a
total of 22 stock exchanges in the country. They are located in other large Indian cities including
Ahmedabad, Bangalore, Calcutta, Chennai and Delhi. There is also an over-the-counter stock exchange in
India that is used to invest in smaller companies.

Foreign Investing in India:-Foreign investments in India used to be harder to come by, but the country has
recently opened things up. India, along with China, is believed to have ample economic growth potential. As
a result, a number of U.S.-based mutual funds and exchange traded funds have now been created that allow
investors to participate in India's stock market.

Regulatory Body:-Funds that invest in India must register with the Securities and Exchange Board of India
(SEBI), which is India's answer to the U.S. Securities and Exchange Commission. The SEBI is located in
Bombay, the site of the country's major stock exchanges. It was founded in 1992 with a mission to "protect
the interests of investors in securities and to promote the development of, and to regulate the securities
market and for matters connected therewith or incidental thereto

Some impotent point about Indian stock market

Indian Stock brokers:Stock brokers offer services such as buying and selling on behalf of investors. They
also provide advisory services. If stock brokers are registered as a portfolio manager, they can offer PMS
services. Some of the bigger brokers also publish their own research
Demat Securities:If any person required to deliver a security in the market does not readily have that
security, he can borrow the same from another person who is willing to lend as per the Securities Lending
and Borrowing Scheme Lending and borrowing has to be done through an 'Approved
Nomination:Nomination can be made only by individuals holding beneficiary accounts either singly or
jointly. Non-individuals including society, trust, body corporate, karta of Hindu Undivided Family, holder of
power of attorney cannot nominate. Only an individual can be a nominee.
Delivery Instruction Slips:To give the delivery of shares from one account to another account, the investor
has to fill a form which is known as ‘Delivery Instruction Slip (DIS)’. DIS may be compared to cheque book
of a bank account.
Mutual funds:Investing is quite a complex exercise. But when it comes to the basic principles, they are
amazingly simple. Anyone can become good investor and reach your goals just by following those simple
and easy rules.
Rematerialisation:The process of reconverting demat shares to physical shares is called rematerialisation. If
one wishes to get back his securities in the physical form, one has to fill in the RRF (Remat Request Form)
and request his DP for rematerialisation of the balances in his securities account.
Depository:It is an entity which holds securities of investors in electronic form at the request of the investors
through a registered Depository participant. It provides services related to transactions in securities based on
instructions given by the investors to depository participant.
Currency:A currency is a unit of exchange, facilitating the transfer of goods and/or services. It is one form
of money, where money is anything that serves as a medium of exchange,
BSE Sensex:BSE sensex is a term given to the calculation of the stock of different companies. The sensex
imitate the ups and downs in the business market of Mumbai. The companies that collectively form BSE 30
are Bharti Airtel, HDFC and HDFC Bank, Bharat heavy electrical, DLF universal limited,
Online Trading:The interest has opened a Pandora’s Box for the investors. Those who never thought about
investing in stocks have now stated investing in the share and stocks. The internet trading has made it simpler
and easy to understand, but the basic rules of trading or
Rules of investing:There are certain golden rules that you have to abide by to be successful in investing in
India stock market. The experienced traders always talk about the profits made by them and not the losses
sustained by them. However, you should know that it is not possible
Upper Circuit Value:The lure of making money has attracted the small investors in investing their funds
in the Indian stock market. The small investors are watching the index of any share or the movement of any
share. Many times it moves in a particular direction

Scenario of Indian Stock market:

The financial scene is worldwide. The crisis had left the stock market in a deep crisis. It is slowly regaining
its breath and there are now investments made all through the world. Stock brokers as well as general public
are making money out of investing in shares and stocks.
WHAT IS DEMAT?

Dematerialization or "Demat" is a process whereby your securities like shares, debentures etc, are
converted into electronic data and stored in computers by a Depository.
Demat has resulted in the elimination of possible mutilated certificates, lost certificates, postal delays and
counterfeit shares. Now it is safe, secure and convenient buying, selling and transacting stocks without
suffering endless paperwork and delays. You can convert your securities to electronic format with a Demat
Account.
Shorter settlements thereby enhancing liquidity
No stamp duty on transfer of securities held in demat form.
No concept of Market Lots.
Change of name, address, dividend mandate, registration of power of attorney, transmission etc. can be
effected across companies held in demat form by a single instruction to the DP.A few features of a Demat
account are:
Dematerialisation of Securities Settlement of Securities traded on the exchange as well as off market
transactions Pledging and Hypothecation of Dematerialised Securities
Electronic credit in public issue Receipt of non-cash benefits in electronic form.
WHAT 'STANDING INSTRUCTION' IS GIVEN IN THE ACCOUNT OPENING FORM?

In a bank account, credit to the account is given only when a 'pay in' slip is submitted together with
cash/cheque. Similarly, in a depository account 'Receipt in' form has to be submitted to receive securities in
the account. However, for the convenience of BOs, facility of 'standing instruction' is given. If you say 'Yes'
for standing instruction, you need not submit 'Receipt in' slip every time you buy securities. If you are
particular that securities can be credited to your account only with your consent, then do not say 'yes' [or
tick ] to standing instruction in the application form.

STOCK EXCHANGES IN INDIA

The origin of the stock exchanges in India can be traced back to the later half of 19th century. After the
American Civil War (1860-61) due to the share mania of the public, the number of brokers dealing in shares
increased. The brokers organised an informal association in Mumbai named “The Native Stock and Share
Brokers Association” in 1875. Increased activity in trade and commerce during the First World War and
Second World War resulted in an increase in the stock trading. Stock exchanges were established in different
centres like Chennai, Delhi, Nagpur, Kan Hyderabad and Bangalore. The growth of stock exchanges suffered
a set back after the end of World War. Worldwide depression affected them. Most of the stock exchanges in
the early stages had a speculative nature of working without technical strength. Securities and Contract
Regulation Act, 1956 gave powers to the central government to regulate the stock exchanges. The stock
exchanges in Mumbai, Calcutta, Chennai, Ahmadabad, Delhi, Hyderabad and Indore were recognised by the
SCR Act. The Bangalore stock exchange was recognised only in 1963. At present we have 23 stock
exchanges and 21 of them had hardware and software compliant to solve Y2k problem.Till recent past, floor
trading took place in all the stock exchanges. In the floor trading system, the trade takes place through open
outcry system during the official trading hours. Trading posts are assigned for different securities where buy
and sell activities of securities took place. This system needs a face to face contact among the traders and
restricts the trading volume. The speed of the new information reflected on the prices was rather slow. The
deals were also not transparent and the system favoured the brokers rather than the investorsThe setting up of
NSE and OTCEI with the screen based trading facility resulted in more and more exchanges turning towards
the computer based trading. Bombay stock exchange introduced the screen based trading system in 1995,
which is known as BOLT (Bombay On-line Trading System.
 NATURE AND FUNCTION OF STOCK EXCHANGE

A stock exchange is a forum for trading in securities representing shares of firms. An exchange provides
ways by which financing is raised by the sale of shares to outside investors. It provides a mechanism for the
valuation of companies through the process of price discovery and a means by which such information is
disseminated.

A formal definition of the term exchange is a critical component of law and regulation regarding securities
trading markets, discussed by Domowitz (1996) and Lee (1998). In the United States, the New York Stock
Exchange (NYSE) is legally an exchange, while the markets operated by the National Association of
Securities Dealers (NASDAQ) and Instinct, an electronic communications network (ECN), are not. All three
examples nevertheless satisfy the definition of a stock exchange given above. Given differences across
countries with respect to legal definitions, a more unified approach is needed to focus the discussion.

The approach taken here is to identify important attributes and functions of institutions satisfying the basic
definition in practice. Exchanges provide trading systems and may offer more than one. Types of trading
systems are sometimes differentiated by the form of market intermediation provided by entities with direct
access to the system. The nature of competition between exchanges is a defining feature, since exchanges
may adopt varying market structures in order to compete in different fashions. A stock exchange is a business
entity, and the form of its governance arrangements is important in understanding its nature and conduct.

There is an extraordinary amount of ignorance and of prejudice born out of ignorance with regard to the
nature and functions of stock exchange. As economic development proceeds, the scope for acquisition and
ownership of capital by private individuals also grows. Along with it, the opportunity for stock exchange to
render the service of stimulating private savings and channelling such savings into productive investment
exists on vastly great scales. These are services which the stock exchange alone can render efficiently. It is
no exaggeration to say that hi a modern industrialist society, which recognises the rights of private ownership
of capital, stock exchanges are not simply a convenience, they are essential. In fact, they are the markets
which exist to facilitate purchase and sale of securities of companies and the securities or bonds issued b the
government in the course of its borrowing operation. As our country moves towards liberalisation, this
tendency is certain to be strengthened.

The task facing the stock exchanges is to devise the means to reach down to the masses, to draw the
savings of the man in the street into productive investment, to create conditions in which many millions of
little investors in cities, towns and villages will find it possible to make use of the facilities, which have so
far been limited to the privileged few. This calls for far-reaching changes, institutional as well as operational.

The stock exchanges in India, thus, have an important I-ole to play in the building of a real shareholders
democracy. Aim of the stock exchange authorities is to make it as nearly perfect in the social and ethical
sense as it is in the economic. To protect the interests of the investing public, the authorities of the stock
exchanges have been increasingly subjecting not only its members to a high degree of discipline, but also
those who use its facilities—joint stock companies and other bodies in whose stocks and shares it deals.
There are stringent regulations to ensure that directors of joint stock companies keep their shareholders fully
informed of the affairs of the company. In fact, some of the conditions that the stock exchange imposes upon
companies before their shares are listed are more rigorous and wholesome than the statutory provision such
as those contained in the Companies Act.

Apart from providing a market that mobilises and distributes the nation’s savings, the stock exchange
ensures that the flow of savings is utilised for the best purpose from the community’s point of view. Free
markets are not simply a matter of many buyers and sellers. If the prices at which stocks and shares change
hands are to be ‘fair’ prices, many important conditions must be satisfied. It is the whole vast company of
investors, competing with one another as buyers and sellers, which decide what the level of security prices
shall be. But the public is prone to sudden swings of hope and fear. If left entirely to itself it would produce
needlessly violent and often quite irrational fluctuations. The professional dealers inside the stock exchange,
and those outside who depend upon them. Absorb a large part of the stock of these movements. These are
valuable activities. So as to ensure that the investors reap the full benefit of them, they (dealers as well as
investors) need to be regulated by a recognised code of conduct. Fair prices and free markets require, above
all things, clean dealings both by professionals and by the investors—and dealings based upon upto date and
reliable information easily accessible to all.

The number of regional stock exchanges in each of the four zones—east, west, north, south—that the
country can be divided into is given in table. The north zone has five stock exchanges. The east zone has
three stock exchanges. The west and south zones have six stock exchanges each.

REGIONAL STOCK EXCHANGES

North Zone East Zone West Zone South Zone

Kanpur Bhubaneswar Ahmadabad Bangalore

Ludhiana Kolkata Vadodara Chennai

New Delhi Guwahati Indore Kochi

Jaipur - Mumbai Coimbatore

Meerut - Pune Hyderabad

- - Rajkot Mangalore

Distridution of trading activity among stock exchanges in India

All Others 4%

Ahmedabad 2%

Delhi 5%

Kolkata 17%

Bombay Stock Exchange 30%

Natinal Stock Exchange 42%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

The share
of the 20
regional bourses, which accounted for about 45.63 per cent of the total trading volumes in 1995-96, had
reduced alarmingly to only about 16 per cent by 2001-02. The Bombay Stock Exchange, though initially
established as a regional stock exchange has assumed a national perspective in recent years with the
introduction of networking and online trading mechanisms.

Besides the regional stock exchanges, three national stock exchanges have been set up in India. They are
the National Stock Exchange, Over the Counter Exchange of India Limited (OTCEI), and Inter connected
Stock Exchange of India Limited (ISE). All these exchanges have their head office at Mumbai.
THE NATIONAL STOCK EXCHANGE (NSE)

The National Stock Exchange of India Limited was set up to provide access to investors from across the
country on an equal footing. NSE was promoted by leading financial institutions at the behest of the
Government of India and was incorporated in November 1992 as a tax-paying company, unlike other stock
exchanges in the country.

On its recognition as a stock exchange under the Securities Contracts (Regulation) Act, 1956 in April 1993,
NSE commenced operations in the wholesale debt market (WDM) segment in June 1994. The capital market
(equities) segment commenced operations in November 1994, and operations in the derivatives segment
commenced in June 2000. The organisational structure of NSE (Figure 2.2) is through the link between
National Securities Clearing Corporation Ltd. (NSCCL), India Index Services and Products Ltd. (IISL),
National Securities Depository Ltd. (NSDL), DotEx International Limited (DotEx) and NSE.IT Ltd.

The National Securities Clearing Corporation Ltd., a wholly owned subsidiary of NSE, was incorporated in
August 1995. It was set up to bring and sustain confidence in the clearing and settlement of securities, to
promote and maintain short and consistent settlement cycles, and to provide counterparty risk guarantee.

India Index Services and Products Limited, a joint venture between NSE and the Credit Rating Information
Services of India Limited (CRISIL), was setup in May 1998 to provide a variety of indices and index- related
services and products for the Indian capital market. It has a consulting and licensing agreement with Standard
and Poor’s (S&P) for co-branding equity indices.

In order to counteract the problems associated with trading in physical securities, NSE joined hands with the
Industrial Development Bank of India (IDBI) and Unit Trust of India (UTI) to promote dematerialisation of
securities. Together they set up the National Securities Depository Limited, the first depository in India.
NSDL commenced operations in November 1996. It has since established a national infrastructure of
international standard to handle trading and settlement in dematerialised form and thus has completely
eliminated the risks associated with fake/bad/stolen paper documents.

NSE.IT, a 100 per cent subsidiary of NSE, provides technical services and solutions in the area of trading,
broker front-end and back-office, clearing and settlement, web-based trading, risk management, treasury
management, asset liability management, banking, insurance, and so on. The company also plans to provide
consultancy and implementation services in the areas of data warehousing, business continuity plans,
mainframe facility management, site maintenance and backups, real time market analysis and financial news,
and so on. NSE.IT is an export-oriented unit with Straight Through Processing (STP).

NSE.IT and i-flex Solutions Limited, a leader in e-enabling the global financial services industry, promoted
DotEx International Limited. DotEx provides customer fulfillment infrastructure for the securities industry.
The initial offering of DotEx is the DotEx Plaza where multiple market participants such as brokers,
depository participants, and banks can offer web-based services to their customers. As a neutral aggregator
and infrastructure provider, DotEx offers choice and convenience to investors.

The National Stock Exchange (NSE) of India became operational in the capital market segment on 3rd,
November 1994 in Mumbai. The genesis of the NSE lies in the recommendations of the Pherwani Committee
(1991). Apart from NSE, it had recommended for the establishment of National Stock Market System also.
Committee pointed out five major defects in the Indian stock market. The defects specified are

THE MAIN OBJECTIVES OF NSE ARE AS FOLLOWS:

 To establish a nation wide trading facility for equities, debt instruments and hybrids.
To ensure equal access to investors all over the country through appropriate communication network.
To provide a fair, efficient and transparent securities market to investors using an electronic
communication network.
To enable shorter settlement cycle and book entry settlement system.
To meet current international standards of securities market.
THE BOMBAY STOCK EXCHANGE

The Bombay Stock Exchange Limited (Marathi: मंब

ु ई शेयर बाजार Mumbaī Śeyar Bājār) (formerly, The
Stock Exchange, Mumbai; popularly called The Bombay Stock Exchange, or BSE) has the greatest number
of listed companies in the world, with 4700 listed as of August 2007. It is located at Dalal Street, Mumbai,
India. On 31 December 2007, the equity market capitalization of the companies listed on the BSE was US$
1.79 trillion, making it the largest stock exchange in South Asia and the tenth largest in the world.

The Bombay Stock Exchange was established in 1875. Around 6,000 Indian companies list on the stock
exchange, and it has a significant trading volume. The BSE SENSEX (SENSitive indEX), also called the
"BSE 30", is a widely used market index in India and Asia. Though many other exchanges exist, BSE and the
National Stock Exchange of India account for most of the trading in shares in India.

The Indian stock market is one of the oldest in Asia. By the 1830s, business in corporate stocks and shares
in bank and cotton presses took place in Bombay. Though the trading list was broader in 1839, there were
only half a dozen brokers recognised by banks and merchants. In
1860-61, the American Civil War broke out and cotton supply from
the United States of America and Europe was stopped. This resulted
in the “Share Mania” for cotton trading in India. The number of
brokers increased to between 200 and 250. However, at the end of the
American Civil War, in 1865, a disastrous slump began - for example, a
Bank of Bombay share that had touched Rs.2,850 could only be sold
at Rs.87. At the same time, brokers found a place in Dalal Street,
Bombay, where they could conveniently assemble and transact
business. In 1887, they formally established the “Native Share and
Stock Brokers’ Association”. In 1895, the association acquired
premises in the same street; it was inaugurated in 1899 as the Bombay
Stock Exchange.

The Bombay Stock Exchange is governed by a board, chaired by a non-executive chairman. The executive
director is in charge of the administration of the exchange and is supported by elected directors, Securities
Exchange Board of India (SEBI) nominees, and public representatives.

Apart from BSE SENSEX, which is the most popular stock index in India, BSE uses other stock indices as
well:

THE TIMELINE ON THE RISE OF THE SENSEX THOUGH HISTORY

 1000, July 25, 1990 On July 25, 1990, the Sensex touched the magical four-digit figure for the first time
and closed at 1,001 in the wake of a good monsoon season and excellent corporate results.

2000, January 15, 1992 On January 15, 1992, the Sensex crossed the 2,000-mark and closed at 2,020
followed by the liberal economic policy initiatives undertaken by the then finance minister and current Prime
Minister Dr Manmohan Singh.

3000, February 29, 1992 On February 29, 1992, the Sensex surged past the 3000 mark in the wake of the
market-friendly Budget announced by the then Finance Minister, Dr Manmohan Singh.

4000, March 30, 1992 On March 30, 1992, the Sensex crossed the 4,000-mark and closed at 4,091 on the
expectations of a liberal export-import policy. It was then that the Harshad Mehta scam hit the markets and
Sensex witnessed unabated selling.

5000, October 8, 1999 On October 8, 1999, the Sensex crossed the 5,000-mark as the BJP-led coalition
won the majority in the 13th Lok Sabha election.

6000, February 11, 2000 On February 11, 2000, the infotech boom helped the Sensex to cross the 6,000-
mark and hit and all time high of 6,006.

7000, June 20, 2005 On June 20, 2005, the news of the settlement between the Ambani brothers boosted
investor sentiments and the scrips of RIL, Reliance Energy, Reliance Capital, and IPCL made huge gains.
This helped the Sensex crossed 7,000 points for the first time.

8000, September 8, 2005 On September 8, 2005, the Bombay Stock Exchange's benchmark 30-share index
-- the Sensex -- crossed the 8000 level following brisk buying by foreign and domestic funds in early trading.

9000, November 28, 2005 The Sensex on November 28, 2005 crossed the magical figure of 9000 to touch
9000.32 points during mid-session at the Bombay Stock Exchange on the back of frantic buying spree by
foreign institutional investors and well supported by local operators as well as retail investors.

10,000, February 6, 2006 The Sensex on February 6, 2006 touched 10,003 points during mid-session. The
Sensex finally closed above the 10K-mark on February 7, 2006.

11,000, March 21, 2006 The Sensex on March 21, 2006 crossed the magical figure of 11,000 and touched
a life-time peak of 11,001 points during mid-session at the Bombay Stock Exchange for the first time.
However, it was on March 27, 2006 that the Sensex first closed at over 11,000 points.

12,000, April 20, 2006 The Sensex on April 20, 2006 crossed the 12,000-mark and closed at a peak of
12,040 points for the first time.

13,000, October 30, 2006 The Sensex on October 30, 2006 crossed the magical figure of 13,000 and
closed at 13,024.26 points, up 117.45 points or 0.9%. It took 135 days for the Sensex to move from 12,000 to
13,000 and 123 days to move from 12,500 to 13,000.

14,000, December 5, 2006 The Sensex on December 5, 2006 crossed the 14,000-mark to touch 14,028
points. It took 36 days for the Sensex to move from 13,000 to the 14,000 mark.

15,000, July 6, 2007 The Sensex on July 6, 2007 crossed the magical figure of 15,000 to touch 15,005
points in afternoon trade. It took seven months for the Sensex to move from 14,000 to 15,000 points.

16,000, September 19, 2007 The Sensex scaled yet another milestone during early morning trade on
September 19, 2007. Within minutes after trading began, the Sensex crossed 16,000, rising by 450 points
from the previous close. The 30-share Bombay Stock Exchange's sensitive index took 53 days to reach
16,000 from 15,000. Nifty also touched a new high at 4659, up 113 points. The Sensex finally ended with a
gain of 654 points at 16,323. The NSE Nifty gained 186 points to close at 4,732.
 17,000, September 26, 2007 The Sensex scaled yet another height during early morning trade on
September 26, 2007. Within minutes after trading began, the Sensex crossed the 17,000-mark . Some profit
taking towards the end, saw the index slip into red to 16,887 - down 187 points from the day's high. The
Sensex ended with a gain of 22 points at 16,921.

18,000, October 09, 2007 The BSE Sensex crossed the 18,000-mark on October 09, 2007. It took just 8
days to cross 18,000 points from the 17,000 mark. The index zoomed to a new all-time intra-day high of
18,327. It finally gained 789 points to close at an all-time high of 18,280. The market set several new records
including the biggest single day gain of 789 points at close, as well as the largest intra-day gains of 993
points in absolute term backed by frenzied buying after the news of the UPA and Left meeting on October 22
put an end to the worries of an impending election.

19,000, October 15, 2007 The Sensex crossed the 19,000-mark backed by revival of funds-based buying in
blue chip stocks in metal, capital goods and refinery sectors. The index gained the last 1,000 points in just
four trading days. The index touched a fresh all-time intra-day high of 19,096, and finally ended with a smart
gain of 640 points at 19,059.The Nifty gained 242 points to close at 5,670.

20,000, October 29, 2007 The Sensex crossed the 20,000 mark on the back of aggressive buying by funds
ahead of the US Federal Reserve meeting. The index took only 10 trading days to gain 1,000 points after the
index crossed the 19,000-mark on October 15. The major drivers of today's rally were index heavyweights
Larsen and Toubro, Reliance Industries, ICICI Bank, HDFC Bank and SBI among others. The 30-share
index spurted in the last five minutes of trade to fly-past the crucial level and scaled a new intra-day peak at
20,024.87 points before ending at its fresh closing high of 19,977.67, a gain of 734.50 points. The NSE Nifty
rose to a record high 5,922.50 points before ending at 5,905.90, showing a hefty gain of 203.60 points.

21,000, January 8, 2008 The sensex crossed the 21,000 mark in intra-day trading after 49 trading sessions.
This was backed by high market confidence of increased FII investment and strong corporate results for the
third quarter. However, it later fell back due to profit booking.

15,200, June 13, 2008 The sensex closed below 15,200 mark, Indian market suffer with major downfall
from January 21,2008

14,220, June 25, 2008 The sensex touched an intra day low of 13,731 during the early trades, then pulled
back and ended up at 14,220 amidst a negative sentiment generated on the Reserve Bank of India hiking
CRR by 50 bps. FII outflow continued in this week.

12,822, July 2, 2008 The sensex hit an intra day low of 12,822.70 on July 2nd, 2008. This is the lowest that
it has ever been in the past year. Six months ago, on January 10th, 2008, the market had hit an all time high
of 21206.70. This is a bad time for the Indian markets, although Reliance and Infosys continue to lead the
way with mostly positive results. Bloomberg lists them as the top two gainers for the Sensex, closely
followed by ICICI Bank and ITC Ltd.

11801.70, Oct 6, 2008 The sensex closed at 11801.70 hitting the lowest in the past 2 years.

10527, Oct 10, 2008

CAPITAL MARKET INSTRUMENTS

 The changes that are sweeping across the Indian capital market especially in the recent past are something
phenomenal. It has been experiencing metamorphic changes in the last decade, thanks to a host of measures
of liberalization, globalization, and privatization that have been initiated by the Government. Pronounced
changes have occurred in the realm of industrial policy, licensing policy, financial services industry, interest
rates, etc. The competition has become very intense and real in both industrial sector and financial services
industry.

TYPES

The various market instruments used by corporate entities for raising resources are as follows:

Preference shares
Equity shares
Nonvoting equity shares
Cumulative convertible preference shares
Company fixed deposits
Warrants
Debentures and Bonds
PREFERENCE SHARES

Shares that carry preferential rights in comparison with ordinary shares are called ‘Preference Shares’. The
preferential rights are the rights regarding payment of dividend and the distribution of the assets of the
company in the event of its winding up, in preference to equity shares.

EQUTIY SHARE

Equity shares, also known as ‘ordinary shares’ are the shares held by the owners of a corporate entity.

CAPITAL

Equity shares are of different types. The maximum value of shares as specified in the Memorandum of
Association of the company is called the authorized or registered or nominal capital. Issued capital is the
nominal value of share offered for public subscription. In case shares offered for public subscription are not
taken up, the portion of capital subscribed is called subscribed capital. This is less than the issued capital.
Paid-up capital is the share capital paid-up by shareholders which is credited as paid-up on the shares.

PAR VALUE AND BOOK VALUE

The face value of a share is called its Par value. Although shares can be sold below the par value, it is
possible that shares can be issued below the par value. The financial institutions that convert their unpaid
principal and interest into equity in sick companies are compelled to do it at a minimum of Rs.10 because of
the par value concept even though the market price might be much less than Rs.10 Par value can also lead to
unhealthy practices like price rigging by promoters of sick companies to take market prices above Rs.10 to
get their new of shares. Book value is the intrinsic value of a share that is calculated to reflect the net worth
of the shareholders of a corporate entity.

CASH DIVIDENDS

These are dividends paid in cash. A stable payment of cash dividends is the hallmark of stability of share
prices.

STOCK DIVIDENDS
 These are the dividends distributed as shares and issued by capitalized reserves. While net worth remains
the same in the balance sheet, its distribution between shares and surplus is altered.

NON-VOTING EQUITY SHARES

Consequent to the recommendations of the ‘Abid Hussain Committee’ and subsequent to the amendment to
the Companies Act, corporate managements are permitted to mobilize additional capital without diluting the
interest of existing shareholders with the help of a new instrument called ‘nonvoting equity shares’. Such
share will be entitled to all the benefits except the right to vote in general meetings. Such nonvoting equity
share is being considered as a possible addition to the two classes of share capital currently in vogue. This
class of shares has been included by an amendment to the Companies Act as a third category of shares.
Corporate will be permitted to issue shares upto a certain percentage of

CONVERTIBLE CUMULATIVE PREFERENCE SHARES (CCPS)

These are the shares that have the twin advantage of accumulation of arrears of dividends and the
conversion into equity shares. Such shares would have to be to the face value of Rs.100 each. The shares
have to be listed on one or more stock exchanges in the country. The object of the issue of CCP shares is to
allow for the setting up of new projects, expansion or diversification of existing projects, expansion or
diversification of existing projects, normal capital expenditure for modernization and for meeting working
capital requirements.

DEBT-EQUITY RATIO

For the purpose if calculation of debt-equity ratio as may be applicable CCPS are be deemed to be an
equity issue.

COMPULSORY CONVERSION

The conversion into equity shares must be for the entire issue of CCP shares and shall be done between the
periods at the end of the three years and five years as may be decided by the company. This implies that the
conversion of the CCP into equity shares would be compulsory at the end of five years and the aforesaid
preference shares would not be redeemable at any stage.

FRESH ISSUE

The conversion of CCP shares into equity would be deemed as being one resulting from the process of
redemption of the preference shares out of the proceeds of a fresh issue of shares made for the purposes of
redemption.

PREFERENCE DIVIDEND

The rate of preference dividend payable on CCP shares would be 10 percent.

SHARES VS. DEBENTURES

 Shares are different from debentures in the following manner:
Shareholder has a proprietary interest in the company, and debenture holder is only a creditor of the
company.
Debenture holder is entitled to fixed interest whereas the shareholder is entitled to dividends depending on
and varying with profits.
Shareholders have voting rights whereas debenture holders do not have voting rights.
Debentures may be redeemable whereas shares except preference shares are not redeemable.
Debenture holders get priority over shareholders when assets are distributed upon winding up.
SEBI GUIDELINES

Following are the guidelines pertaining to the issue of bonus shares by a listed corporate enterprise:

Reservation: In respect of FCDs and PCDs, bonus shares must be reserved in proportion to such
convertible part of FCDs and PCDs. The shares so reserved may be issued at the time of conversion(s) of
such debentures on the same terms on which the bonus issues were made.

Reserves: The bonus issue shall be made out of free reserves built out of the genuine profits or share
premium collected in cash only. Reserves created by revaluation of fixed assets are not capitalized.

Dividend mode: The declaration of bonus issue, in lieu of dividend, is not made.

Fully paid: The bonus issue is not made unless the partly paid shares, if any are made fully paid-up.

No default: The Company has not defaulted in payment of interest or principal in respect of fixed deposits
and interest on existing debentures of principal on redemption thereof and has sufficient reason to believe
that it has not defaulted in respect of the payment of statutory dues of the employees such as contribution to
provident fund, gratuity, bonus, etc.

Implementation: A company that announces its bonus issue after the approval of the Board of Directors
must implement the proposal within a period of 6 months from the date of such approval and shall not have
the option of changing the decision.

The articles: The Articles of Association of the company shall contain a provision for capitalization of
reserves, etc. If there is no such provision in the Articles, the company shall pass a resolution at its general
body meeting making provisions in the Articles of Associations for capitalization.

Resolution Consequent to the issue of bonus shares if the subscribed and paid-up capital exceeds the
authorized share capital, the company at its general body meeting for increasing the authorized capital shall
pass a resolution.

MURPHY'S LAWS IN STOCK MARKETS

 DEVELOPING TRADING STRATEGIES
Sometimes it takes several years to recognize the obvious.
The simpler it looks, the more problems it hides.
BUYING STOCKS
If anything can go wrong, it will.
If anything can't go wrong, it will.
If you know something can go wrong, and take due precautions against it, something else will go wrong.
You will never run out of things that can go wrong.
Failure is the opportunity to begin again more intelligently.
The less you do, the less can go wrong.
You can never tell which way the train will go by looking at the track.
Always assume that your assumption is invalid.

SELLING STOCKS
You never know how soon it is too late.
When things go wrong, don't go with them.
If you are in a hole, stop digging.

FOLLOWING TRADING STRATEGIES

Being punctual means only that your mistake will be made on time.
A good place to start from is where you are.
To learn from you mistakes, you must realize that you are making mistakes. Experience is what causes you
to make new mistakes instead of old ones.
The best defence against logic is ignorance.
If you enjoy what you are doing, you are probably wrong.

ABOUT DIVERSIFICATION
Things go wrong all at once, but things go right gradually.

CUSTOMER SERVICE OF FINANCIAL SITES

If you don't know the answer, someone will ask the question.
You don't have to explain something you never said.
If you want to make enemies, try to change something.
Be kind to everyone you talk with. You never know who's going to be on the jury.
Never be too right too often.
The only changes that are easily adopted are changes for the worse.
The less you have to do, the slower you do it.
Always do exactly what your boss would do if he knew what he was talking about

GUIDELINES TO INVESTORS
 Deal with a registered member of the stock exchange. If you are dealing with a sub-broker, make sure that
all bills and contracts are made in the name of a registered broker.
Insist that all your deals are done in the trading ring, or electronically recorded.
Give specific orders to buy or sell within the fixed price limits and/or time periods within which orders
have to be executed.
Insist on contract notes to be passed on to you on the dates, when the orders are executed.
Make sure that your deal is registered with the stock exchange in a souda Block Book or recorded
electronically. In the case of a dispute, this will help trace the details of the deal easily.
Collect a settlement table from the stock exchange mentioning the pay-in and pay-out days. Each stock
exchange has its own trading periods which are called settlements. All transactions done within this period
are settled at the end of it. All payments for shares bought and their deliveries take place on the pay-in day.
An awareness of pay-in and payout days is useful when a broker tries to make excuses.
Keep separate records of dealings in specified shares (Group A) and non-specified shares (Group B1, and
B2). The settlement for each is on different days.
Execute periodic settlements of dues and delivery of shares to avoid accumulation of transactions.
Insist on delivery. If the company returns your papers and shares with objections, contact your broker
immediately.
Ensure that shares bought are transferred in your name before the company's book closure date. This is
necessary to make sure that you receive benefits like dividend, interest and bonus shares. All companies have
a book closure date on which the list of shareholders in the company is finalised.
Complain if the broker does not deliver the shares bought in your name. Proceed to contact another broker
with the bill/contract given to you by the earlier broker, and the Exchange authorities and the latter will
purchase the shares on your behalf. In such an event, the first broker will have to pay the difference in price.
Do not sell shares that are not transferred in your name after the book closure as these are not valid in the
market.
Do not sell/deal in shares where any one of the holders has passed away. In cases where the holder has
died, a succession certificate is necessary. In cases where one of the joint shareholders passes away, the
surviving holder should send the shares along with the death certificate to the company. Only after the name
of the deceased has been deleted from the shares, can they be transferred.
Do not expect the money for shares to come immediately. It will take at least a fortnight at present from the
date of transaction.
Unless you have a special arrangement with the broker, do not expect the adjustment of purchases and sales
against one another. One pays first and receives later.
Do not take delays or harassment lying down. You have to complain to the Grievance Cell of the stock
exchange or the Securities and Exchange Board of India (SEBI) in case of delay or harassment.
Share Market And News

Gone are the days when gaining information on share market was a difficult task. There were only a
counted few brokerage platforms when online share trading started and investors depended solely on brokers
for all their investment assessment. Today there is no dearth of information on the web on share market
trading. Visit any online brokerage platform; there are many that you can come across and in seconds you
can take a visual tour of the latest market news, know about the performances of the stock exchanges, view
the latest stock quotes and lots more. What more can you ask for when you can even get expert tips in
seconds in such online stock market platforms. Trading today has become a completely effortless affair!

CHAPTER 3
 LITERATURE SURVEY

. The project is based on pure findings of facts

Development of working hypothesis: The hypothesis could be developed by discussing with the
different consumer in the organization and guides about this exploratory research and reach to the conclusion
that the data is to be collected by personal interaction with the consumer of organization asking them about
Indian stock market and knowledge about how to attract other to invest in shares market. First of all
everyone should be aware of how to invest in those market and what are the different advantages of investing
in share market; which is hard to judge but regular investors can identify it very well.

Customer Attitude is an important theoretical as well as practical issue for most marketers and
consumer researchers. Customer satisfaction is increasingly becoming a corporate goal as more and more
companies strive for quality in their products and services Customer satisfaction is the feeling or attitude of a
customer towards a product or service after it has been used and is generally described as the full meeting of
one's expectations Customer satisfaction is a major outcome of marketing activity whereby it serves as a link
between the various stages of consumer buying behaviour. For instance, if customers are satisfied with a
particular service offering after its use, then they are likely to engage in repeat purchase and try line
extensions . A study conducted by Levesque and McDougall confirmed and reinforced the idea that
unsatisfactory customer service leads to a drop in customer Attitude and willingness to recommend the
service to a friend. This would in turn lead to an increase in the rate of switching by customers.

To measure customer satisfaction with different aspects of service quality, Parasuraman, Valerie
Zeithaml and Berry developed a survey research instrument called SERVQUAL (10). It is based on the
premise that the customers can evaluate a firm's service quality by comparing their perceptions of its service
with their own expectations. SERVQUAL is seen as a measurement tool that can be applied across broad
spectrum of service industries. In its basic form, the scale contains 21 perception items and a series of
expectation items, reflecting the five dimensions of service quality.

Their findings suggest that, in reality, SERVQUAL scores measure only two factors: intrinsic service
quality (resembling what is termed functional quality) and extrinsic service quality (which refers to the
tangible aspects of service delivery and "resembles to some extent what Gronroos refers to as technical
quality"). Generic dimensions customers use to evaluate service quality are credibility, security, access
communication, understanding the customer, tangibles, reliability, responsiveness, competence, courtesy.

It is very essential in the research process to know the accuracy of the finding’s which depends on
how systematically the study has been carried out so that it can make sense. We have executed the project
after prior discussion with our guide and structured in the following steps:

Preparation of a questionnaire

The focal point of the designing the questionnaire was to know what are the basic idea of people
about security market and how they will invest in different security market.

This questionnaire was primarily aimed to see that investors easily get the information about different
skims available in market and what are the advantages and disadvantages of those skims.
 The questionnaires were discussed through personal interface with the respondents.

SERVQUAL Scale

The SERVQUAL scale includes five dimensions: tangibles, reliability, responsiveness, assurance and
empathy. Within each dimension are several items measured on a seven-point scale from strongly agree to
strongly disagree, for a total of 21 items.

SERVQUAL Questions

For actual survey respondents, instructions are also included, and each statement is accompanied by a
seven-point scale ranging from "Strongly Agree--5" to "Strongly Disagree--1". Only the end points of the
scale are labeled; there are no words above the number 2 through 4.
 Chapter 4:
Research Methodology
A. OBJECTIVE : -
The primary objective of the study is to find out the customer Attitude toward the Indian stock
marker speciality in Raipur city

The scope of the study encompasses –

1. To analysis Customer awareness about Indian stock market.

2. To identify customer perception towards the Indian stock market.

B. RESEARCH PLAN :-

RESEARCH METHODOLOGY: -
Research has its special significance in solving various operational and planning problems of business
and industry, research methodology is a way to systematically analyse the research problem. Thus,
research methodology is the fountain of knowledge for the sake of knowledge and an important
source of providing guidelines for solving different problems.

ASSUMPTIONS
It has been assumed that sample of 30 represents the whole population.
The information given by the customer is unbiased.

It is the science, which tells the method for doing research, it mainly consist of following main steps.
1) Developing Research Design.
2) Determine the data collection method.
3) Developing a sampling plan.
4) Conductive fieldwork.
RESEARCH DESIGN: -

A research design in preconceived scheme or blue print followed in completing the formal
investigation.it provides the framework within which the researcher is to work. The formulation of
sound research design is dependent on the problem identified. It mainly calls for decision on research
approaches.

RESEARCH APPROACHES:

Research is basically of three types: -

1) Exploratory.
2) Discriptive
3) Causal

EXPLORATORY RESEARCH: -
It is a research done primarily to develop and understand new hypothesis to cover all possible
outcomes. The main emphasis in this research is not only to gain familiarity with the phenomena, but also the
discovery of idea and achieving new insights into it.
CONCLUSIVE RESEARCH:-
 It is a research, which is a systematic collection of information, needed, its analysis and findings as per
research objective. It essentially follows the exploratory research.

DATA COLLECTION METHOD

DATA :-This are the information used to attain research objectives.
TYPES OF DATA:

There are mainly two types of data.

a. Primary data.
b. Secondary data.
PRIMARY DATA: -

These are the data, which are directly collected by the researcher from the field. These are latest
data and are hence reliable.

SECONDARY DATA: -

It is the data which has already been collected by some one else and has been passed through the
statistical process and which is applicable or usable in the study researcher has presently undertaken
these data provide both published and unpublished information which is readily available with the
external parties.

BASIC METHOD OF DATA COLLECTION:-

There are two basic methods available for collection of data these are.

1) Questionnaire method or survey method.

2) Observation method.

A. QUESTIONNAIRE METHOD: -

This method refers to all those method which are required for obtaining the needed information from
the respondents for the purpose of understanding and predicting some aspect of behaviour of population of
interest.

TYPES OF QUESTIONNAIRE METHOD: -

1) Structure / Disguised.
2) Structure / Non Disguised.
3) Non-structure /disguised.
4) Non structure / Non disguised

B.OBSERVATION METHOD:-

It is the method in which respondents are simply observed and his action are recorded either by
physically watching him or through certain mechanical and electronic devices.

Types of observation method: -

It mainly of following types.

1) Structured / Disguised.
 2) Structured / Non Disguised.
3) Non-structured/disguised.
4) Non structured / Non disguised

RESEARCH INSTRUMENT:-

There are mainly two type of research instruments for collecting data.

1) Questionnaires
2) Mechanical Devices

QUESTIONNAIRES:-

This questionnaire consists of asset of questions presented to respondents for their answer. The
questions present in the questionnaires are basically of three types.

a) Open ended questions.

b) Close ended questions.
c) Dichotomous question.

MECHANICAL DEVICES:-

There are various mechanical devices, which are used to study various responses of the
respondents. These include galvanometer techistiscope, eye cameras etc. these instruments are however not
used frequently.

C. SAMPLING PLAN
It is a plan, which determines the type of respondents and their number from whom researcher
has to collect the data. This plan calls for four decision.

1) Sampling Unit.
2) Sampling Size.
3) Sampling Procedure.
4) Medium for collecting sample.

SAMPLING UNIT:- In this the researcher designs the target population that will be sampled. Once the
sampling unit is determined sampling frame has to be prepared so that each and every one in the target
population has an equal chance of being sampled.

SAMPLING SIZE:-In this researcher determines the 50 people to be surveyed.

SAMPLING PROCEDURE:-The selection of units from sampling frame, termed, as sampling unit is the
process of sampling. There are mainly two type of sampling approaches.

1) Probability sampling.
2) Non-Probability sampling.

PROBABILITY SAMPLING:-In this method every unit in the sampling frame has an equal or known
chance of being included in the sample.

NON-PROBABILITY SAMPLING:-The chance that a sampling unit would be selected to be included in

sample cannot be estimated.

MEDIUM FOR COLLECTING SAMPLE:-

In this the researcher determines the method through which the subject should be cotacted. This include
following three method.

1) Mail questionnaire.
2) Telephone interviewing.
3) Personal interview.

RESEARCH DESIGN: -

Considering the importance of the objectives of study and also the importance of decision
area it was decided to undertake an exploratory survey first. Brand loyalty of the telecom operator in pre-paid
area customers were observed by the interview held through structured questionnaire along with open ended
and close ended question.

The main purpose of this survey was to get information about brand loyalty of
telecom operator in businessman customer.

D.DATA COLLECTION METHOD

The relevant data and information for the survey was collected through both primary source as well as
secondary source. The primary data were collected directly from the sample business man customer.
Secondary source includes books, magazines as well as reports available in the department and Internet.
Secondary information mainly provided the background for the survey and help in providing information in
the subjects for which sufficient primary information was not available.

The survey consist of one type questionnaire

1) QUESTIONNAIRE FOR CUSTOMER.

Questionnaire consists of a balanced no. Of close ended and open ended questionnaire
mainly of multiple choices and scaling technique for some question where it’s necessary. Besides there are
sufficient no. Of open ended question for the allowing the respondents to speak freely.

SAMPLING PLAN:
Considering the importance of the topic and limitation of time,

TECHNIQUE USE OF ANALYSIS OF DATA:

-For the analysis of the “Percentage & random sampling” has been used. on Percentage & random
sampling are used to measure different psychological aspects such as attitudes, perceptions and preference of
people with the help of certain pre-defined set of stimuli and instructions. We show our graphical
presentation in percentage.
MEDIUM FOR COLLECTING SAMPLE:

Personal interview through structured questionnaire was considered most appropriate means for contacting
businessman customers.
GEOGRAPHICAL AREA COVERED

The whole fieldwork has been done in Raipur ,Bhilai , Durg City.

Thus in short the research methodology of the survey is following:-

Research Design Descriptive
Research Method Used Survey

Research Technique Used Questionnaire

Data Collection (location) From Durg, Bhilai and Raipur

Sampling Plan Simple Random

Sample Size 50

Generally a
research methodology comprises of the following steps.

S.No. General Methodology

Step1. To decide the objective of the study.

Step2. To decide the research design

Step3. To determine the source of data

Step4. To design data collection form

Step5. To determine sampling design and sample size.

Step6. To organize and conduct the fieldwork.

Step7. To process and analyze the collected data.

Step8. To prepare the research report

E.Descriptive Statistics :-
 QUESTIONNAIRE
Thank you for your help! You are one of just a few people I am asking, so your answers are very
important. Please answer all questions some questions seems similar to each other but please answer all
questions. For most, you need only check a box or enter a number for your answer. The survey will take only
few minute:
Question No.1 Are you like to invest in Indian stock Market?
Yes No Partly

Question No.2 which factors are you like in Indian Stock Market?
More Return Security/Reliable Services

Question No.3 which factors are you not like in Indian Stock Market?
Risk No Security No Return

Question No.4 How Much security you feel of your money in Indian stock market?
0-25 % 25-50% 50-100%

Question No.5 How much you believe Indian stock market gives more return of your money?
0-25 % 25-50% 50-100%

Question No.6 Are you have proper knowledge about Indian stock market?
Yes No Partly

Question No.7 Are you know how to invest in Indian stock market?
Yes No Partly

Question No.8: Did you invest in Security or Stock Market?

Yes No Partly

Question No.9: What is your yearly income?

0-1 lakhs 1-2.5 lakhs More than 2.5 lakhs

Question No.10: Do you get update information about all types market and there condition regularly ? (If you
invest in Security Market)
Yes No Partly
Personal details
Name: ____________________________________
Age: 18-25 25-35 More then 35
Gender: : Male Female
Status: Married Single
Occupation: