CHAPTER – 1

INTRODUCTION AND DESIGN OF THE STUDY

1.1 INTRODUCTION

Stock prices change every day by market forces. By this we mean that share prices

change because of supply and demand. If more people want to buy a stock (demand) than sell it

(supply), then the price moves up. Conversely, if more people wanted to sell a stock than buy it,

there would be greater supply than demand, and the price would fall. Understanding supply and

demand is easy. What is difficult to comprehend is what makes people like a particular stock and

dislike another stock. This comes down to figuring out what news is positive for a company and

what news is negative.

There are many answers to this problem and just about any investor you ask has their

own ideas and strategies.That being said, the principal theory is that the price movement of stock

indicates what investors feel a company is worth. Don't equate a company's value with the stock

price. The value of a company is its market capitalization, which is the stock price multiplied by

the number of shares outstanding. For example, a company that trades at $100 per share and has

1,000,000 shares outstanding has a lesser value than a company that trades at $50 but has

5,000,000 shares outstanding ($100 x 1,000,000 = $100,000,000 while $50 x 5,000,000 =

$250,000,000). To further complicate things, the price of a stock doesn't only reflect a company

current value–it also reflects the growth that investors expect in the future. That being said, the

principal theory is that the price movement of a ockindicatewhatinvestors feel a company is

worth. Don't equate a company's value with the stock price. The value of a company is its market

capitalization, which is the stock price multiplied by the number of shares outstanding. For
example, a company that trades at $100 per share and has 1,000,000 shares outstanding has a

lesser value than a company that trades at $50 but has 5,000,000 shares outstanding ($100 x

1,000,000 = $100,000,000 while $50 x 5,000,000 = 50,000,000). To further complicate things,

the price of a stock doesn't only reflect a company's current value–it also reflects the growth that

investors expect in the future.

The most important factor that affects the value of a company is its earnings. Earnings are

the profit a company makes, and in the long run no company can survive without them. It makes

sense when you think about it. If a company never makes money, they aren't going to stay in

business. Public companies are required to report their earnings four times a year (once each

quarter). Wall Street watches with rabid attention at these times, which are referred to as

earnings seasons. The reason behind this is that analysts base their future value of a company on

their earnings projection. If a company's results surprise (are better than expected), the price

jumps up. If a company's results disappoint (are worse than expected), then the price will fall.

Of course, it's not just earnings that can change the sentiment towards a stock (which, in

turn, changes its price). It would be a rather simple world if this were the case! During the dot-

com bubble, for example, dozens of Internet companies rose to have market capitalizations in the

billions of dollars without ever making even the smallest profit. As we all know, these valuations

did not hold, and most all Internet companies saw their values shrink to a fraction of their highs.

Still, the fact that prices did move that much demonstrates that there are factors other than

current earnings that influence stocks. Investors have developed literally hundreds of these

variables, ratios and indicators. Some you may have already heard of, such as the P/E ratio ,
while others are extremely complicated and obscure with names like Chaikin Oscillator or

Moving Average Convergence Divergence (MACD) .

So, why do stock prices change? The best answer is that nobody really knows for sure.

Some believe that it isn't possible to predict how stocks will change in price

while others think that by drawing charts and looking at past price movements, you can

determine when to buy and sell. The only thing we do know as a certainty is that stocks are

volatile and can change in price extremely rapidly.

1.2 OPERATIONAL DEFINITION

SENSEX (BSE SENSEX)

The Bombay Stock Exchange's Sensitive Index, also called Sensex or BSE Sensex, is

one of the leading stock market benchmark indices in India. It  tracks the movement of stock

prices on the exchange and functions as an indicator of market sentiments.

Launched by BSE in 1986, Sensex consists of 30 components (stocks) that represent,

broadly, the composition of the entire market. Each of the scrips is assigned a weightage on the

index that is linked to its market capitalization. It measures a particular stock's ability to

influence movements in the index. The base year of the Sensex is 1978-79 with the base index

value taken as 100 points.

 While the number of components has remained the same since its inception, the

composition of the Sensex changes periodically as scrips are inducted or removed depending on

their market capitalization, frequency and volume of trading and volatility among other

parameters.

For a long time the BSE Sensex was the only benchmark index in India for the stock

markets until the National Stock Exchange was launched in the early nineties. Its S&P Nifty

Index is a much broader index, but the Sensex is still followed as a barometer of market

sentiment in India.

ORIGIN OF SENSEX

The BSE SENSEX (also known as the S&P Bombay Stock Exchange Sensitive Index or

simply the SENSEX) is a free-float market-weighted stock market index of 30 well-

established and financially sound companies listed on Bombay Stock Exchange. The 30

constituent companies which are some of the largest and most actively traded stocks, are

representative of various industrial sectors of the Indian economy. Published since 1 January

1986, the S&P BSE SENSEX is regarded as the pulse of the domestic stock markets in India.

The base value of the SENSEX was taken as 100 on 1 April 1979 and its base year as 1978–79.

On 25 July 2001 BSE launched DOLLEX-30, a dollar-linked version of the SENSEX.

BANKING

Banking is an industry that handles cash, credit, and other financial transactions. Banks

provide a Safe place to Store extra cash and credit. They offer savings accounts, Certificates of

Deposit, and checking accounts. Banks use these deposits to make loans. These loans include

home mortgages, business loans, and car loans.

A Bank is a financial institution licensed to receive deposits and make loans. Two of the

most common types of banks are commercial/retail and investment banks. Depending on type, a

bank may also provide various financial services ranging from providing safe deposit boxes and

currency exchange to retirement and wealth management.

Banking in India in the modern sense originated in the last decades of the 18th century.

Among the first banks were the Bank of Hindustan, which was established in 1770 and liquidated

in 1829-32; and the General Bank of India, established 1786 but failed in 1791.

The largest bank, and the oldest still in existence, is the State Bank of India. It originated

as the Bank of Calcutta in June 1806. In 1809, it was renamed as the Bank of Bengal. This was

one of the three banks funded by a presidency government; the other two were the Bank of

Bombay and the Bank of Madras. The three banks were merged in 1921 to form the Imperial

Bank of India, which upon India's independence, became the State Bank of India in 1955. For

many years the presidency banks had acted as quasi-central banks, as did their successors, until

the Reserve Bank of India was established in 1935, under the Reserve Bank of India Act 1934.In

1960, the State Banks of India was given control of eight state-associated banks under the State

Bank of India (Subsidiary Banks) Act, 1959. These are now called its associate banks. In 1969
the Indian government nationalized 14 major private banks. In 1980, 6 more private banks were

nationalized. These nationalized banks are the majority of lenders in the Indian economy. They

dominate the banking sector because of their large size and widespread networks.

The Indian banking sector is broadly classified into scheduled banks and non-scheduled

banks. The scheduled banks are those which are included under the 2nd Schedule of the Reserve

Bank of India Act, 1934. The scheduled banks are further classified into: nationalized banks; State

Bank of India and its associates; Regional Rural Banks (RRBs); foreign banks; and other Indian

private sector banks. The term commercial banks refer to both scheduled and non-scheduled

commercial banks which are regulated under the Banking Regulation Act, 1949.

Generally banking in India was fairly mature in terms of supply, product range and reach-

even though reach in rural India and to the poor still remains a challenge. The government has

developed initiatives to address this through the State Bank of India expanding its branch network

and through the National Bank for Agriculture and Rural Development with things like

microfinance.During the period of British rule merchants established the Union Bank

of Calcutta in 1869, first as a private joint stock association, then partnership. Its proprietors were

the owners of the earlier Commercial Bank and the Calcutta Bank, who by mutual consent created

Union Bank to replace these two banks. In 1840 it established an agency at Singapore, and closed

the one at Mirzapore that it had opened in the previous year. Also in 1840 the Bank revealed that

it had been the subject of a fraud by the bank's accountant. Union Bank was incorporated in 1845

but failed in 1848, having been insolvent for some time and having used new money from

depositors to pay its dividends. The Allahabad Bank, established in 1865 and still functioning

today, is the oldest Joint Stock bank in India; it was not the first though. That honors belongs to
the Bank of Upper India, which was established in 1863, and which survived until 1913, when it

failed, with some of its assets and liabilities being transferred to the Alliance Bank of Simla.

Foreign banks too started to appear, particularly in Calcutta, in the 1860s. The Comptoir

d'Escompte de Paris opened a branch in Calcutta in 1860, and another in Bombay in 1862;

branches in Madras and Pondicherry, then a French possession, followed. HSBC established itself

in Bengal in 1869. Calcutta was the most active trading port in India, mainly due to the trade of

the British Empire, and so became a banking centre.The first entirely Indian joint stock bank was

the Oudh Commercial Bank, established in 1881 in Faizabad. It failed in 1958. The next was

the Punjab National Bank, established in Lahore in 1894, which has survived to the present and is

now one of the largest banks in India.The partition of India in 1947 adversely impacted the

economies of Punjab and West Bengal, paralyzing banking activities for months.

India's independence marked the end of a regime of the Laissez-faire for the Indian banking.

The Government of India initiated measures to play an active role in the economic life of the

nation, and the Industrial Policy Resolution adopted by the government in 1948 envisaged

a mixed economy. This resulted into greater involvement of the state in different segments of the

economy including banking and finance. The major steps to regulate banking included:

 The Reserve Bank of India, India's central banking authority, was established in April

1935, but was nationalized on 1 January 1949 under the terms of the Reserve Bank of

India (Transfer to Public Ownership) Act, 1948 (RBI, 2005b).

 In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of

India (RBI) "to regulate, control, and inspect the banks in India".
  The Banking Regulation Act also provided that no new bank or branch of an existing bank

could be opened without a license from the RBI, and no two banks could have common

directors.

Nationalization in the 1960s

Despite the provisions, control and regulations of the Reserve Bank of India, banks in

India except the State Bank of India (SBI), continued to be owned and operated by private

persons. By the 1960s, the Indian banking industry had become an important tool to facilitate the

development of the Indian economy. At the same time, it had emerged as a large employer, and a

debate had ensued about the nationalization of the banking industry. Indira Gandhi, the

then Prime Minister of India, expressed the intention of the Government of India in the annual

conference of the All India Congress Meeting in a paper entitled "Stray thoughts on Bank

Nationalization. The meeting received the paper with enthusiasm.

Thereafter, her move was swift and sudden. The Government of India issued an ordinance

('Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1969')

and nationalized the 14 largest commercial banks with effect from the midnight of 19 July 1969.

These banks contained 85 percent of bank deposits in the country.Jayaprakash Narayan, a national

leader of India, described the step as a "masterstroke of political sagacity." Within two weeks of

the issue of the ordinance, the Parliament passed the Banking Companies (Acquisition and

Transfer of Undertaking) Bill, and it received the presidential approval on 9 August 1969.A

second dose of nationalisation of 6 more commercial banks followed in 1980. The stated reason

for the nationalisation was to give the government more control of credit delivery. With the

second dose of nationalisation, the Government of India controlled around 91% of the banking

business of India. Later on, in the year 1993, the government merged New Bank of
India with Punjab National Bank. It was the only merger between nationalised banks and resulted

in the reduction of the number of nationalised banks from 20 to 19. After this, until the 1990s, the

nationalised banks grew at a pace of around 4%, closer to the average growth rate of the Indian

economy.

Liberalization in the 1990s

In the early 1990s, the then government embarked on a policy of liberalization, licensing a

small number of private banks. These came to be known as New Generation tech-savvy banks,

and included Global Trust Bank (the first of such new generation banks to be set up), which later

amalgamated with Oriental Bank of Commerce, UTI Bank (since renamed Axis Bank), ICIC

Bank and HDFC Bank. This move, along with the rapid growth in the economy of India,

revitalized the banking sector in India, which has seen rapid growth with strong contribution from

all the three sectors of banks, namely, government banks, private banks and foreign banks.

The next stage for the Indian banking has been set up with the proposed relaxation in the

norms for foreign direct investment, where all foreign investors in banks may be given voting

rights which could exceed the present cap of 10% at present. It has gone up to 74% with some

restrictions. The new policy shook the Banking sector in India completely. Bankers, till this time,

were used to the 4–6–4 method (borrow at 4%; lend at 6%; go home at 4) of functioning. The new

wave ushered in a modern outlook and tech-savvy methods of working for traditional banks. All

this led to the retail boom in India. People demanded more from their banks and received more.

CURRENT PERIOD
 All banks which are included in the Second Schedule to the Reserve Bank of India Act,

1934 are Scheduled Banks. These banks comprise Scheduled Commercial Banks and Scheduled

Co-operative Banks. Scheduled Commercial Banks in India are categorized into five different

groups according to their ownership and/or nature of operation. These bank groups are:

 State Bank of India and its Associates

 Nationalised Banks

 Private Sector Banks

 Foreign Banks

 Regional Rural Banks.

 Cooperative Banks

 Scheduled Bank

In the bank group-wise classification, IDBI Bank Ltd. is included in Nationalised Banks.

Scheduled Co-operative Banks consist of Scheduled State Co-operative Banks and Scheduled

Urban Cooperative Banks.By 2010, banking in India was generally fairly mature in terms of

supply, product range and reach-even though reach in rural India still remains a challenge for the

private sector and foreign banks. In terms of quality of assets and capital adequacy, Indian banks

are considered to have clean, strong and transparent balance sheets relative to other banks in

comparable economies in its region. The Reserve Bank of India is an autonomous body, with

minimal pressure from the government.

 With the growth in the Indian economy expected to be strong for quite some time-

especially in its services sector-the demand for banking services, especially retail banking,

mortgages and investment services are expected to be strong. One may also expect M&As,

takeovers, and asset sales.

In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its stake

in Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has been

allowed to hold more than 5% in a private sector bank since the RBI announced norms in 2005

that any stake exceeding 5% in the private sector banks would need to be vetted by them.In recent

years critics have charged that the non-government owned banks are too aggressive in their loan

recovery efforts in connexion with housing, vehicle and personal loans. There are press reports

that the banks' loan recovery efforts have driven defaulting borrowers to suicide.

By 2013 the Indian Banking Industry employed 1,175,149 employees and had a total of

109,811 branches in India and 171 branches abroad and manages an aggregate deposit

of ₹67504.54 billion (US$1.0 trillion or €1.0 trillion) and bank credit of ₹52604.59

billion (US$790 billion or €780 billion). The net profit of the banks operating in India was

₹1027.51 billion (US$16 billion or €15 billion) against a turnover of ₹9148.59

billion (US$140 billion or €140 billion) for the financial year 2012-13.On 28 Aug, 2014,

Pradhan Mantri Jan Dhan Yojana ( प्रधानमंत्री जन धन योजना, English: Prime Minister's People

Money Scheme) is a scheme for comprehensive financial inclusion launched by the Prime

Minister of India, Narendra Modi. Run by Department of Financial Services, Ministry of Finance,

on the inauguration day, 1.5 Crore (15 million) bank accounts were opened under this scheme. By

15 July 2015, 16.92 crore accounts were opened, with around ₹20288.37 crore (US$3.1 billion)

were deposited under the scheme, which also has an option for opening new bank accounts with

zero balance.

DEFINITION

Banking is defined as “Accepting of deposits of money from public for the purpose of

Lending or Investment, repayable on demand or otherwise and with drawable by cheque, draft, or

otherwise”

Banking can be defined as the business activity of accepting and safeguarding money

owned by other individuals and entities, and then lending out this money in order to earn a profit.

However, with the passage of time, the activities covered by banking business have widened and

now various other services are also offered by banks. The banking services these days include

issuance of debit and credit cards, providing safe custody of valuable items, lockers, ATM

services and online transfer of funds across the country / world.

SHARE PRICE

A share price – or a stock price – is the amount it would cost to buy one share in a

company. The price of a share is not fixed, but fluctuates according to market conditions. It will

likely increase if the company is perceived to be doing well, or fall if the company isn’t meeting

expectations.

How are share prices determined?

Initially, share prices are determined through a company’s initial public offering (IPO), in

which the price of one share is set according to the perceived supply of, and demand for, that
company’s stock. The prices are usually set by a book runner – a lead manager who is appointed

specifically to help the company determine an appropriate price for its IPO.

After the IPO, a company’s share price can be impacted by a range of factors. For

example, any increase in the number of shares on the market would bring the price down,

assuming demand remains the same. Equally, any reduction in demand – perhaps on the back of

changes in a company’s senior leadership – would reduce the share price, so long as supply

remains constant.

More specifically, other factors can also affect a company’s share price include expected

or unexpected industry news, macroeconomic data releases and political announcements.

How to Analyse Share Prices

Share prices can be effectively analysed through both technical and fundamental analysis.

Technical analysis seeks to assess the future price movements of shares by looking at historical

chart data. By studying previous share price trends, technical analysts can often identify whether

a stock is about to enter a bullish or bearish trend.

Fundamental analysis is more concerned with identifying whether a stock is over or

undervalued. It does this by analysing the individual company’s perceived ability to generate a

profit, focusing on macroeconomic data, financial statements and decisions from senior

management.
STOCK PRICE VOLATILITY

When selecting a security for investment, traders look at its historical volatility to help

determine the relative risk of a potential trade. Numerous metrics measure volatility in

differing contexts, and each trader has their favourites. A firm understanding of the concept

of volatility and how it is determined is essential to successful investing.

The most simple definition of volatility is a reflection of the degree to which price moves.

A stock with a price that fluctuates wildly—hits new highs and lows or moves erratically—is

considered highly volatile. A stock that maintains a relatively stable price has low volatility. A

highly volatile stock is inherently riskier, but that risk cuts both ways. When investing in a

volatile security, the chance for success is increased as much as the risk of failure. For this

reason, many traders with a high-risk tolerance look to multiple measures of volatility to help

inform their trade strategies.

KEY TAKEAWAYS

 Standard deviation is the most common way to measure market volatility, and traders can

use Bollinger Bands to analyze standard deviation.

 Maximum drawdown is another way to measure stock price volatility, and it is used by

speculators, asset allocators, and growth investors to limit their losses.

  Beta measures volatility relative to the stock market, and it can be used to evaluate the

relative risks of stocks or determine the diversification benefits of other asset classes.

1.3 THE IMPORTANCE OF STOCK MARKETS

What is the most well-known gauge for measuring how the economy of a country is

performing? The strength of its currency gives us a picture but may be influenced by speculators

and liquidity, while bond markets are normally considered a little complex for the general public

to understand to any professional level

The majority of people turn to the performance of a country’s stock market as the best

indicator of how well that economy is doing. Stock markets cover all

industries across all sectors of the economy. This means they serve as a barometer of what cycle

the economy is in and the hopes and fears of the population who generate growth and wealth.

Stock markets have existed for centuries and will no doubt go on being the main

public, regulated marketplaces where people can buy and sell shares of different companies.

Of course, today’s markets are very different from share trading in the Dutch East India

Company back in 1602, but stocks still remain the most popular investment choice thanks to

their potential for returns and their opportunity to invest directly in individual companies.
Why are stock markets essential?

 Stock markets enable companies to be traded publicly and raise capital. The transfer of

capital and ownership is traded in a regulated, secure environment.

 Stock markets promote investment. The raising of capital allows companies to grow their

businesses, expand operations and create jobs in the economy. This investment is a key

driver for economic trade, growth and prosperity.

 For investors, stock markets provide a way to invest money in order to potentially earn a

share of the company’s profits (knowing that the risk of losses exists too). Active

investors and traders can easily buy and sell their securities due to the abundant liquidity

in most major stock markets.

Why trade stocks?

There are numerous reasons why companies, banks, funds, investors and traders buy and

sell company stocks:

 Investment Gains

Stock ownership may help your money grow. Over the long-term, the benefits of

investing in stocks typically far outweigh those of holding money in lower-return assets

like cash.
  Diversification

Trading a variety of stocks can help you spread your risk across different asset

classes, economic sectors, and geographical locations. This will expand the potential for

positive returns in your portfolio.

 Income

Some stocks provide income as regular dividends, even if the stock has lost value.

That is income you can keep or reinvest. You can also register votes in company

activities.

 Control

Stocks trade by the millions every day so you can easily trade, buy and sell stocks

and shares when you want. This flexibility also means you decide which company to

invest in and when.Trading stocks let you own a part of a company’s present and future.

Depending on your risk tolerance and timeframe, the benefits can be many and varied.

1.4 IMPORTANCE OF THE STUDY

Performing a research before making an investment is a must. It is only after a thorough

research that you can make some assumptions into the value and future performance of an

investment. Even if you are following stock trading tips, it ideal to do some research, just to

ensure that you are making an investment that’s expected to get you maximum returns. When

you invest in equity, you purchase some portions of a business expecting to make money upon

increase in the value of the business. Before buying anything, be it a car or phone, you do some

degree of research about its performance and quality. An investment is no different. It is your
hard earned money that you are about to invest, so you must have a fair knowledge of what you

are investing in.

1.5 OBJECTIVES OF THE STUDY

Every study based on some clearly defined objectives. Objectives decide the all over

framework of any study. The main objective of this study is to capture the trends, activities and

movements of the Indian Stock Market. The present study “ based on following objectives:-

 To study the sense movements during the study of period.

 To know the nifty movements during the study of period.

 To analyze the moving average select banking companies.

1.6 SCOPE OF THE STUDY

Times are really quite exciting; an ever increasing plethora of events followed the global

financial crisis. With globalization and innovation in the financial markets at its peak - it is very

essential to study the market risks and requirements. Over the years, the India stock market has

undergone major changes to remain at par with the global peers. With global trade and finance

getting more dynamic day by day, the India stock market is not far behind to experience these

developments. This has helped the financial structure of India get more innovative.
1.7 STATEMENT OF THE PROBLEM

The stock market is an interesting animal.  There have always been problems and

opportunities.  The day trading boom changed the stock market dramatically.  People no longer

had to have access to an inside man or a position on the stock market.  The internet allowed them

to do research, and companies like trade were more than happy to facilitate the process.  Did this

contribute to the volatility of the stock market?  I think that it did.  The stock market was always

volatile, but this is a whole new ball game.

If you are referring to the current problem with the stock market, it has to do with the

financial collapse of the sub-prime mortgages that came through Fanny Mae and Freddie Mac. 

These mortgages were bundled and sold as securities and were bought by many

investment houses thereby allowing the crisis to reach deep into the financial system beyond the

bank that lent the money to the people who were unable to pay the money back.

In response to this shock to the market, many investment houses went out of business,

suddenly finding that their assets had no value.  Additionally, the credit market tightened up

considerably in response to the bad credit that was dominating the news.  Suddenly, people who

had good credit could not borrow money either because all lending institutions were afraid to

lend anyone money, even bank to bank lending was tightened.

 The stock market is a reflection of the future, it is highly sensitive to any movement by

the federal reserve, or numbers in the job market or consumer spending. 

The stock market is a measure of the health of the economy.  When things are bad, the

bears, or the sellers dominate the market.  If everyone sells or dumps their stock, bonds, etc, the

market goes down because the value of the investments go down.  That is how the market loses

so many points in a single day. 

Literally the value of the investment instrument has been lowered by the fact that no one wants

to own it.
1.8 REVIEW OF LITERATURE

Ashish Garg, B.S.Bodla and Sangeetha Chhabra (2010) in their study entitled

“SEASONAL ANOMALIES IN STOCK RETURNS: A STUDY DEVELOPED AND

EMERGING MARKETS” examines whether seasonal anomalies still persist in the Developed

and Developing Markets and the Indian and US markets are taken as the representative of

Emerging and Developed Markets. The study utilises data during January 1998 and December

2007 BSE Sensex and S&P 500 for US Markets data to analysis Turn of the Month effect, Semi

Month effect, Monthly effect, Monday effect and Friday effect. The study employs Post hoc

analysis and ANOVA, the author observe that in India stock market returns in Friday is higher

than other days of the week, whereas Friday’s return is found lowest than the other days return in

US market. Monday effect, Friday’s stock return reflected on Monday’s stock return, Monday is

the negative returns other days quite positive for the first period. Second period Monday is lower

average return of the rest of the days. Monday effect exists in Indian stock market but not in the

US. Semi-monthly effect to compare the average return of first half of the month, and average

return of second half of the month. BSE ltd first half month return higher than the second half

month. Semi-monthly effect is same for the both of the Indian and US market. Ending for this

study efficiency of stock market closely related to the allocation of scare capital resources. Both

Indian and US market turn of month effect is significantly. Monthly effect upward pressure of

stock market and result higher return in January month. But in case of India in the month of

March is tax saving month, therefore anomaly exist in Indian stock market. Result for this study

the presence of anomalies indicates stock market efficiency therefore. SEBI as a regulator of
India’s stock market security exchange commission in US need to take steps in order to increase

the informational efficiency of stock market.

P. Nageswari, DR.M. Selvam and DR.J. Gayathri (2011) in their study entitled “AN

EMPRICAL ANALYSIS OF SEMI MONTH AND TURN OF THE MONTH EFFECTS IN

INDAIN STOCK MARKET” examines the return of the month effect in Indian stock market.

The study has been carried out to find how bad news and good news is reflected stock prices.

The study considers S & P CNX Nifty and BSE Sensex data for six years from 1 January 2005

to 31 December 2010. The collected data are analysed by applying‘t’ test. The result of the study

disclose that highest mean return was recorded for the first half of the month than the rest of the

days in the month. Result of the study also shows that the semi-month effect and turn of the

month effect was not prevalent in the Indian stock market during the study period. By analysing

these anomalies in Indian stock market it is concluded that most of the cash flow entered in the

Indian stock market in first few days of the month, as a result indices stock prices to move

upward.

Mihir Dash, Anirban Dutta, and Mohit Sabharwal (2011) in their study entitled

“SEASONALITY AND MARKET CRASHES IN INDIAN STOCK MARKET” to explore the

relation between the Month-of-the-year effect and market crash effects on monthly return in

Indian Stock market. Closing value of BSE Sensex between April 1997 and March 2007 is

utilized for the study ANOVA, Regression,

ADF test and Duncan post hoc test are the tools used for analysis. ANOVA result discloses that

there is no significant difference in mean monthly return between the different months. Duncan

post hoc test indicates that March returns were significantly lower than those of November,

December, and August. The November returns were significantly higher than those of months
March, April, May, October, and September. Conclusion for the study End of the year effect is

due to Diwali as general public spend their saving towards purchase house hold goods,

equipment’s and Gold, similarly return is noticed. Negative return is noticed during March, as

investor in order to reduce their stock burden prefers to re-invest their shares.

Sanjay Sehgal, Srividya Subramaniam, and Florent Deisting (2012) in their study

entitled “ACCRUALS AND CASH FLOWS ANOMALIES: EVIDANCE FROM THE

INDIAN STOCK MARKET” examines that negative relationship is observe between accruals

and cash flows. CAPM tests that the market beta is lower for the low accrual portfolio as

compared to the high accrual portfolio. The study perspective of portfolio manager’s information

in accruals / cash flows does not hold strong promise of providing extra normal returns in the

India context. From the academic point of view their results are in conflict with the findings for

developed markets. Suggesting differences in investor behaviour across markets.

Rohan Laximichand Rambhia, and Mayank Joshipura (2012) in their study entitled

“EXPLORING RISK ANOMALY IN INDIAN EQUITY MARKET” Low volatility portfolios

are used to explore the risk anomaly in Indian equity markets. The results for the study consists

of the constituent stocks from S&P CNX

500 index January 2001- June 2011 were obtained by Capital line data base. Out of the total

available list of 500 companies of S&P CNX 500 following companies are excluded from the

final sample. Companies for which data for 36 months historical data was not available and

hence their volatility not be calculated. S&P CNX 500 the broad market index gave absolute

average monthly returns of 1.2% P1, P10 and S&P 500 index. Comparison with regards to the
number of month for which LV portfolios gave higher returns the HV portfolios. It can be

clearly seen in spite of the long Bull Run that the Indian markets saw from January 2004 to

December 2007. LV portfolio our performed HV portfolio in 47 out of 90 months of the testing

period and that too with significantly lesser risk. Implementation issues / consideration 1.

Transaction cost, 2. Monthly rebalancing, 3. Back testing using quantitative analysis, & 4. Long

term strategy. Behavioural aspects are 1. High volatility stocks are still preferred, 2. It may

therefore be used to understand why high volatility stocks are preferred to low volatility stocks in

spite of unexpected high returns of low-volatility & high volatility portfolios. The most common

explanation for higher interest in the high-volatility stocks is a phenomenon called as a lottery

effect. The lottery effect thus leads effective low returns high volatility stocks. Result for this

study the results found in the Indian markets are similar to those found in some other countries

such as the US, the low volatility portfolio strategy gives a higher absolute return over a long

period then both high volatility portfolio as well as the broad market index and requires patience

its benefits.

Sanjay Sehgal, Srividya Subramaniam, and Laurence Porteu DE LA Morandiere

(2012) in their study entitled “A SEARCH FOR RATIONAL SOURCES OF STOCK RETURN

ANOMALIES: EVIDENCE FROM INDIA” Disproves the traditional theory ( i.e ) higher the

risk higher the return . Investors, who invest in low volatile stock earns more return than high

volatile stocks.

Shyam Lal Dev Pandey and Gopi Prachetas (2012) in his study entitled “TESTING OF

RISK ANOMALIES IN INDIAN EQUITY MARKET BY USING MONTHLY AVERAGE

RISK & RETURN” proves that low volatile stocks offers higher average rate of return than high

volatile stocks, which proves the existence of inefficiency in Indian Stock Market.
 Sarbapriya (2012) in her study “INVESTING SEASONAL BEHAVIOUR IN THE

MONTHLY RETURNS: EVIDENCE FROM BSE SENSEX OF INDIA” proves that the

month of year effect is noticed in Indian stock market whereas an investor may dispose the loss

the month of march making shares in order to avail income tax benefit.

Manish.R.Pathak (2013) in his study entitled “STOCK MARKET SEASONALITY: A

STUDY OF THE INDIAN STOCK MARKET” (NSE) observes that day of the week effect and

month of the year effect is not noticed in Indian stock market due to the increased volatility,

increased awareness among Indian investors, Globalization of Indian Economy, reach of Media,

emergence of Derivatives segment and Increase in disposable Income.

Dr. Pedapalli Neeraja and CMA. Potharla Srikanth (2014) in their study entitled

“ANOMALIES IN INDIAN STOCK MARKET – AN EMPIRICAL EVIDENCE FROM

SEASONALITY EFFECT ON BSEIT INDEX” examine the anomalies present in the Indian

Information Technology companies stocks and also study the impact of overall Indian stock

market conditions on the Information technology companies stocks. The result indicates of

Augmented Dickey Fuller test that returns of Indian IT sector stocks are more volatile than the

overall Indian stock market. GARCH model disclose that negative returns are observed in IT

better during the month of March and April. Similar trend is noticed in BSE during the month of

January, July and August.

 Juhi Ahuja (2012) presents a review of Indian Capital Market & its structure. In last

decade or so, it has been observed that there has been a paradigm shift in Indian capital

market. The application of many reforms & developments in Indian capital market has made

the Indian capital market comparable with the international capital markets. Now, the market

features a developed regulatory mechanism and a modern market infrastructure with growing

market capitalization, market liquidity, and mobilization of resources. The emergence of

Private Corporate Debt market is also a good innovation replacing the banking mode of

corporate finance. However, the market has witnessed its worst time with the recent global

financial crisis that originated from the US sub-prime mortgage market and spread over to the

entire world as a contagion. The capital market of India delivered a sluggish performance.

1.9 RESEARCH METHODOLOGY / RESEARCH DESIGN

The study is based on secondary sources adopted from Bombay Stock Exchange Index. The

data analysis has been done by using suitable statistical tools and techniques, wherever

necessary.

1.10 SOURCE OF DATA

In the present study the secondary data was used. Secondary data were collected

from Bombay Stock Exchange Index. The researcher referred books, journals, magazines,

reports, newspaper and websites.

1.11 PERIOD OF STUDY

The period selected for the study is covered for nine months April to December 2021

(01.04.2021 to 31.12.2021). This period has been considered for analysis, the study gives clear

stock price movements.

1.12 LIMITATIONS OF THE STUDY

The period of study is confined only nine months April to December 2021 (01.04.2021 to

31.12.2021).

Data is collected from secondary sources like Bombay Stock Exchange Index. Since their

nature and methodologies are heterogeneous, there would be some obvious limitations on the

conclusions drawn from the research study.

The time period of the research was limited, (four month).

1.13 CHAPETERIZATION

The present study is organized as follows:-

Chapter I - The first chapter deals with introduction and design of the study it’s includes

introduction to the subject matter of study, operational definition, importance of study,

statement of the problem, scope and objective of the study, review of literature research

methodology, limitations of the study and Chapeterization.

Chapter II - The second chapter deals with an overview of stock price movements.

Chapter III - The third chapter is related to the profile of the banks.

Chapter IV - The chapter considers a detailed analysis and interpretation of the data. This

chapter considers a detailed study of stock price movement.

Chapter V - This chapter deals with the summary of findings, suggestions and conclusion

of the present study

 CHAPTER – II

OVERVIEW OF STOCK PRICE MOVEMENT

2.1 WHY DO STOCK PRICES FLUCTUATE

Stock prices fluctuate frequently, increasing and decreasing in value (sometimes by

shocking amounts) in a single trading day. Novice investors may wonder why this is the case.

To help you understand, here is a basic overview of some of the forces that cause this

volatility. Read on to learn about the way the stock market works and how stock prices are set.

2.2 THE STOCK MARKET IS AN AUCTION

First, realize that the stock market is in essence an auction, with one party wanting to sell

its ownership in a particular company, and another party wanting to buy ownership. When the

two parties agree upon a price, the trade is matched and that becomes the new market quotation

for the stock. 

These buyers and sellers can be individuals, corporations, institutions, governments,

or asset management companies that are managing money for private clients, mutual

funds, index funds, or pension plans. In many cases, you won't have any idea who is on the other

side of the trade.

 
 The number of trades is called the trading volume, and it can indicate how "hot" a

particular stock is, or how much interest there is in it from other investors. It can also give traders

an idea of how easy it will be to get into or out of a position in a certain stock.

2.3 SUPPLY AND DEMAND

Stock prices are affected by supply and demand. Because the stock market functions as

an auction, when there are more buyers than there are sellers, the price has to adapt or no trades

are made. This tends to drive the price upwards, increasing the market quotation at which

investors can sell their shares and enticing investors to sell who had previously not been

interested in selling. 

On the other hand, when sellers outnumber buyers and there is less demand, whoever is

willing to take the lowest bid sets the price, resulting in a race to the bottom.

When large amounts of stock are dumped on the market at once, it can be a problem. For

example, during the financial crisis of 2007-2009, firms such as Lehman Brothers were forced to

dump everything they could to try and raise cash as they struggled with bankruptcy, as many of

their assets were illiquid. 1 This flooded the market with securities that were worth far more to a

long-term buyer than the price at which Lehman was willing to sell.
2.4 WHAT INFLUENCES BUYER AND SELLERS

On a typical day, the value of shares of stock doesn't move much. You'll see prices go up

and down by a percentage point or two, with occasional larger swings.But sometimes, events can

occur to cause shares to rise or fall sharply.

2.5 EXTERNAL EVENTS

It could be caused by an earnings report that shows good or bad financial news. It may be

a major financial news event, such as an interest rate hike. Or it could even be a natural disaster,

such as a hurricane, that is likely to have far-reaching consequences. Any of these events could

trigger a reaction in the market, causing investors to rush to sell or to buy.2 These reactions could

be based on emotion, or could they could be the result of a calculated decision, but either way,

they can affect the price of the stock.

2.6 INVESTOR ANALYSIS

Investing style can vary widely, and affect the sale of stock. For example, suppose a

particular company issues a poor earnings report. Some holders of that company's stock may

panic, selling their shares and driving the price down as supply exceeds demand. On the other

hand, some investors may see the bad news as temporary and spot an opportunity to scoop up

shares at a discount, until the value of the stock rises again.

 Speculators—those who buy and sell not based on a company's intrinsic value, but on

some other metric—can drive stock prices to extremes. Contrast them with investors who care

only to purchase stock at a discount from its worth, with the confidence it will grow in value

over time.

Generally, investors who use the value investing method choose to buy or sell shares

based on their evaluation of the company's balance sheet, and their overall impression of whether

a company is fairly priced.

CAPITAL MARKET AT A GLANCE

Primary market

Stocks available for the first time are offered through new issue market. The issuer may

be a new company. These issues may be of new type or the security used in the past. In the new

issue market the issuer can be considered as a manufacturer. The issuing houses, investment

bankers and brokers act as the channel of distribution for the new issues. They take the

responsibility of selling the stocks to the public.

A total of Rs. 2,520,179 million were raised by the government and corporate sector

during 2002-03 as against Rs. 2,269,110 million during the preceding year. Government raised

about two third of the total resources, with central government alone raising nearly Rs. 1,511,260

million.
Corporate Securities

Average annual capital mobilization from the primary market, which used to be about

Rs.70 crore in the 1960s and about Rs.90 crore in the 1970s, increased manifold during the

1980s, with the amount raised in 1990-91 being Rs. 4,312 crore. It received a further boost

during the 1990s with the capital raised by non-government public companies rising sharply to

Rs. 26,417 crore in 1994-95. The capital raised which used to be less than 1% of gross domestic

saving (GDS) in the 1970s increased to about 13% in 1992-93. In real terms, the capital raised

increased 4 times between 1990-91 and 1994-95. During 1994-95, the amount raised through

new issues of securities from the securities market accounted for about four-fifth of the

disbursements by FIs. Issuers have shifted focus to other avenues for raising resources like

private placement.

There is a preference for raising resources in the primary market through private

placement of debt instruments. Private placements accounted for about 93% of total resources

mobilized through domestic issues by the corporate sector during 2002-03. Rapid dismantling of

shackles on institutional investments and deregulation of the economy are driving growth of this

segment. There are several inherent advantages of relying on private placement route for raising

resources. While it is cost and time effective method of raising funds and can be structured to

meet the needs of the entrepreneurs, it does not require detailed compliance with formalities as

required in public or rights issues. It is believed in some circles that private placement has

crowded out public issues. However, to prevent public issues from being passed on as private

placement, the Companies (Amendment) Act, 2001 considers offer of securities to more than 50

persons as made to public.

 Indian market is getting integrated with the global market though in a limited way

through euro issues. Since 1992, when they were permitted access, Indian companies have raised

about Rs. 34,264 million through ADRs/GDRs. By the end of March 2003, 502 FIIs were

registered with SEBI. They had net cumulative investments over of US $ 15.8 billion by the end

of March 2003. Their operations influence the market as they do delivery-based business and

their knowledge of market is considered superior. The market is getting institutionalized as

people prefer mutual funds as their investment vehicle, thanks to evolution of a regulatory

framework for mutual funds, tax concessions offered by government and preference of investors

for passive investing. The net collections by MFs picked up during this decade and increased to

Rs. 199,530 million during 1999-00. This declined to Rs. 111,350 million during 2000-01 which

may be attributed to increase in rate of tax on income distributed by debt oriented mutual funds

and lackluster secondary market.

The total collection of mutual funds for 2002-03 has been Rs. 105,378 million. Starting

with an asset base of Rs. 250 million in 1964, the total assets under management at the end of

March 2003 was Rs. 794,640 million. The number of households owning units of MFs exceeds

the number of households owning equity and debentures. At the end of financial year March

2003, according to a SEBI press release 23 million unit holders had invested in units of MFs,

while 16 million individual investors invested in equity and or debentures.

Government Securities

The primary issues of the Central Government have increased many-fold during the

decade of 1990s from Rs. 89,890 million in 1990-91 to Rs. 1,511,260 million in 2002-03. The

issues by state governments increased by about twelve times from Rs. 25,690 million to Rs.
308,530 million during the same period. The Central Government mobilised Rs. 1,250,000

million through issue of dated securities and Rs. 261,260 million through issue of T-bills. After

meeting repayment liabilities of Rs. 274,200 million for dated securities, and redemption of T-

bills of Rs. 195,880 million, net market borrowing of Central Government amounted to Rs.

1,041,180 million for the year 2002-03. The state governments collectively raised Rs. 305,830

million during 2002-03 as against Rs. 187,070 million in the preceding year. The net borrowings

of State Governments in 2002-03 amounted to Rs. 290,640 million. Along with growth of the

market, the investor base has become very wide. In addition to banks and insurance companies,

corporates and individual investors are investing in government securities. With dismantling of

control regime, and gradual lowering of the SLR and CRR, Government is borrowing at near–

market rates. The coupons across maturities went down recently signifying lower interest rates.

The weighted average cost of its borrowing at one stage increased to 13.75% in 1995- 96, which

declined to 7.34% in 2002-03. The maturity structure of government debt is also changing. In

view of bunching of redemption liabilities in the medium term, securities with higher maturities

were issued during 2002-03. About 64% of primary issues were raised through securities with

maturities above 5 years and up to 10 years. As a result the weighted average maturity of dated

securities increased to 13.83 years from 6.6 years in 1997-98.

Relationship between the Primary and Secondary Market

1. The new issues market cannot function without the secondary market. The

secondary market or the stock market provides liquidity for the issued securities.

The issued securities are traded in the secondary market offering liquidity to the

stocks at a fair price.

 2. The stock exchanges through their listing requirements, exercise control over the

primary market. The company seeking for listing on the respective stock

exchange has to comply with all the rules and regulations given by the stock

exchange.

3. The primary market provides a direct link between the prospective investors and

the company. By providing liquidity and safety, the stock markets encourage the

public to subscribe to the new issues. The marketability and the capital

appreciation provided in the stock market are the major factors that attract the

investing public towards the stock market. Thus, it provides an indirect link

between the savers and the company.

4. Even though they are complementary to each other, their functions and the

organizational set up are different from each other. The health of the primary

market depends on the secondary market and vice versa.

Functions of Primary Market

The main service functions of the primary market are organization, underwriting and

distribution. Origination deals with the origin of the new issue. The proposal is analyzed in terms

of the nature of the security, the size of the issue, and timing of the issue and floatation method

of the issue. Underwriting contract makes the share predictable and removes the element of

uncertainty in the subscription. Distribution refers to the lead managers and brokers to the issue.

In the new issue market stocks are offered for the first time. The functions and the

organization of the new issue market is different from the secondary market. In the new issue the
lead mangers manage the issue, the underwriters assure to take up the unsubscribed portion

according to his commitment for a commission and the bankers take up the responsibility of the

collecting the application form and the money. Advertising agencies promote the new issue

through advertising. Financial institutions and underwriter lend term loans to the company.

Government agencies regulate the issue. The new issues are offered through prospectus. The

prospectus is drafted according to SEBI guidelines disclosing the needed information to the

investing public. In the bought out deal banks or a company buys the promoters shares and they

offer them to the public at a later date. This reduces the cost of raising the fund. Private

placement means placing of the issue with financial institutions. They sell shares to the investors

at a suitable price. Right issue means the allotment of shares to the previous shareholders at a

pro-ratio basis. Book building involves firm allotment of the instrument to a syndicate created by

the lead managers. The book runner manages the issue. Norms are given by the SEBI to price the

issue. Proportionate allotment method is adopted in the allocation of shares. Project appraisal,

disclosure in the prospectus and clearance of the prospectus by the stock exchanges protect the

investors in the primary market along with the active role played by the SEBI

Secondary market

The market for long-term securities like bonds, equity stocks and preferred stocks is

divided into primary market and secondary market. The primary market deals with the new

issues of securities. Outstanding securities are traded in the secondary market, which is

commonly known as stock market or stock exchange. In the secondary market, the investors can

sell and buy securities. Stock markets predominantly deal in the equity shares. Debt instruments

like bonds and debentures are also traded in the stock market. Well-regulated and active stock
market promotes capital formation. Growth of the primary market depends on the secondary

market. The health of the economy is reflected by the growth of the stock market.

Corporate Securities

The number of stock exchanges increased from 11 in 1990 to 23 now. All the exchanges

are fully computerised and offer 100% on-line trading. 9,413 companies were available for

trading on stock exchanges at the end of March 2003. The trading platform of the stock

exchanges was accessible to 9,519 members from over 358 cities on the same date.

The market capitalisation grew ten fold between 1990-91 and 1999-00. It increased by

221% during 1991-92 and by 107% during 1999-00. All India market capitalisation is estimated

at Rs. 6,319,212 million at the end of March 2003. The market capitalisation ratio, which

indicates the size of the market, increased sharply to 57.4% in 1991-92 following spurt in share

prices. The ratio further increased to 85% by March 2000. It, however, declined to 55% at the

end of March 2001 and to 29% by end March 2003.

The trading volumes on exchanges have been witnessing phenomenal growth during the

1990s. The average daily turnover grew from about Rs.1500 million in 1990 to Rs. 120,000

million in 2000, peaking at over Rs. 200,000 million. One-sided turnover on all stock exchanges

exceeded Rs. 10,000,000 million during 1998-99, Rs. 20,000,000 million during 1999-00 and

approached Rs. 30,000,000 million during 2000-01. However, the trading volume substantially

depleted to Rs.9,689,541 million in 2002-03. The turnover ratio, which reflects the volume of

trading in relation to the size of the market, has been increasing by leaps and bounds after the

advent of screen based trading system by the NSE. The turnover ratio for the year 2002-03
increased to 375 but fell substantially due to bad market conditions to 119 during 2001-02

regaining its position accounted 153.3% in 2002-03.

The relative importance of various stock exchanges in the market has undergone dramatic

change during this decade. The increase in turnover took place mostly at the large big exchanges

and it was partly at the cost of small exchanges that failed to keep pace with the changes. NSE is

the market leader with more 85% of total turnover (volumes on all segments) in 2002-03. Top 5

stock exchanges accounted for 99.88% of turnover, while the rest 18 exchange for less than

0.12% during 2002-03. About ten exchanges reported nil turnover during the year.

Role of the Secondary Market

When company management has different objectives than its outside investors, "agency”

and "information" problems may result. For example, management may exert less than optimal

effort, may pursue goals that simply enhance its own power and control, or may squander or

divert company resources. In addition, to the extent that management is better informed than

outside investors about the company's financial situation, this creates an informational

asymmetry. This, in turn, may result in management being unable to convince its outside

investors of the true value of the company as well as of management's intentions. As a

consequence, management also may find that it is not able to raise as much capital as it wants or

needs to finance new projects, or that management may have to surrender too much of the value

of the firm to raise the capital it wants or needs. "Governance" refers to the various mechanisms

that exist to mitigate these agency and information problems. These mechanisms are numerous,

some involving capital markets (e.g., facilitation of corporate control via takeover) while others

do not, at least not directly (e.g., the role of the board of directors as a monitoring device). These
major mechanisms will be discussed. We use the term "market-based governance" to refer to the

role of capital markets in alleviating the agency and information problems, by functioning as an

effective conduit for monitoring and controlling management's sub optimal behavior. Market-

based governance may take different forms. However, generally speaking, such governance takes

the form of facilitating the monitoring of management by outsiders, and aggregating information

—in the form of equilibrium prices (or price discovery)—to help guide management decisions

within the firm.

A. Monitoring and Control.

As noted, secondary equity markets serve as a conduit for monitoring and controlling

management by outsiders. First, markets generate information that helps outside investors

Evaluate the quality of past management decisions. Second, the threat of a takeover may

mitigate management inefficiencies. Third, information on stock-market prices provides for

effective incentives for management. And fourth, the rich menu of contracts provided in the

market allows private workouts of financial distress, easing the transfer of control.

For purposes of our analysis below, we have divided monitoring into two categories

 Market-based monitoring

 Non market-based monitoring

I. Market-Based Monitoring

I. 1 Active Shareholders:

The secondary equity market can facilitate effective monitoring by providing the ability

to build positions so as to influence management decisions in situations where a change in

corporate policies could increase a firm's value.

I. 2 The Market for Corporate Control:

The threat of a corporate takeover by outside investors could serve as a deterrent to

mismanagement. Secondary equity markets provide the means for launching a credible takeover

threat, which could influence actions by management.

I. 3 Facilitation of Incentive-Based Compensation:

Management could be aligned with its outside shareholders through a proper structuring

of incentive-based compensation. Management's equity ownership and stock options provide

management with additional incentives to act in the interest of outside shareholders.

I. 4 Certification by Investment Banks:

When issuing securities to the public, the underwriting investment bankers monitor

management. When certifying a firm that hires them to sell its securities, these investment

bankers place their own reputations and capital at stake.

 II. Non Market-Based Monitoring

II. 1 Board of Directors:

A board of directors is the primary method of non market-based monitoring.

Management reports directly to the board, and the board has a fiduciary obligation to stay

informed of management's major activities. The board has the power to terminate management

that does not act in the best interests of the company's shareholders. The key to a board's being

an effective monitoring mechanism is its independence. In this regard, the composition of the

board, especially the presence of outside board members, is critical to its effectiveness as a

monitor.

II. 2 Financial intermediaries as delegated monitors:

Banks closely monitor their business borrowers, and collect information and scrutinize

major investment and financing decisions. In doing so, they can threaten to withhold financing

should management act in a manner contrary to the banks' interests. Monitoring via business

groups. In some countries, such as Japan and Korea, corporate actions are coordinated within a

family of interrelated firms, with a main bank at the center. Firms in the group are interconnected

through intricate vertical and horizontal business relationships and cross-ownership. Members of

the business group, with the lead participation of the main bank, closely monitor the actions of a

member firm's management.

The Legal System:

The four main legislations governing the securities market are: (a) the SEBI Act, 1992 which

establishes SEBI to protect investors and develop and regulate securities market; (b) the

Companies Act, 1956, which sets out the code of conduct for the corporate sector in relation to

issue, allotment and transfer of securities, and disclosures to be made in public issues; (c) the

Securities Contracts (Regulation) Act, 1956, which provides for regulation of transactions in

securities through control over stock exchanges; and (d) the Depositories Act, 1996 which

provides for electronic maintenance and transfer of ownership of demat securities. Government

has framed rules under the SCRA, SEBI Act and the Depositories Act. SEBI has framed

regulations under the SEBI Act and the Depositories Act for registration and regulation of all

market intermediaries, and for prevention of unfair trade practices, insider trading, etc. Under

these Acts, Government and SEBI issue notifications, guidelines, and circulars which need to be

complied with by market participants. The SROs like stock exchanges have also laid down their

rules of game.

The responsibility for regulating the securities market is shared by Department of

Economic Affairs (DEA), Department of Company Affairs (DCA), Reserve Bank of India (RBI)

and SEBI. The activities of these agencies are co-ordinated by the High Level Committee on

Capital Markets. Most of the powers under the SCRA are exercisable by DEA while a few others

by SEBI. The powers of the DEA under the SCRA are also con-currently exercised by SEBI.

The powers in respect of the contracts for sale and purchase of securities, gold related securities,

money market securities and securities derived from these securities and ready forward contracts

in debt securities are exercised concurrently by RBI. The SEBI Act and the Depositories Act are
mostly administered by SEBI. The rules and regulations under the securities laws are

administered by SEBI. The powers under the Companies Act relating to issue and transfer of

securities and non-payment of dividend are administered by SEBI in case of listed public

companies and public companies proposing to get their securities listed. The SROs ensure

compliance with their own rules as well as with the rules.

The legal system governs both the rights of management and the rights of investors. The

legal system also specifies the recourse available to investors. Recent research indicates that

countries vary in the level of protection afforded to minority shareholders (LaPorta et al, 1996).

Generally, countries with common-law traditions afford the highest protection, while civil-law

countries, particularly the French civil-law systems, provide the least amount of protection.

For purposes of this paper, the main focus and emphasis are on market-based governance

services.

B. Information Production.

Markets serve to aggregate the diverse opinions held by investors regarding the financial

prospects of a company, thereby providing management with an important guide when it

comes to its investment decisions. This price discovery role of secondary equity markets

is well recognized. Prices aggregate the diverse opinions and convey that collective wisdom to

management. This flow of information from the market to the firm might be especially relevant

in today's economy, since consensus on the optimal management actions is so difficult to achieve

due to rapid technological change and constantly changing market conditions.

Functions of Stock Exchange

 Maintains active trading: shares are traded on the stock exchanges, enabling the

investors to buy and sell securities. The prices may vary from transactions to

transaction. A continuous trading increases the liquidity or marketability of the

shares traded on the stock exchanges.

 Fixation of prices: Price is determined by the transactions that flow from

investors’ demand and suppliers’ preferences. Usually the traded prices are made

known to the public. This helps the investors to make better decisions.

 Ensures safe and fair dealing: The rules, regulations and by-laws of the stock

exchanges’ provide a measure of safety to the investors. Transactions are

conducted under competitive conditions enabling the investors to get a fair deal.

 Aids in financing the industry: A continuous market for shares provides a

favourable climate for raising capital. The negotiability and transferability of the

securities helps the companies to raise long-term funds. When it is easy to trade

the securities, investors are willing to subscribe to the initial public offerings. This

stimulates the capital formation.

 Dissemination of information: Stock exchanges provide information through their

various publications. They publish the share prices traded on daily basis along

with the volume traded. Directory of Corporate Information is useful for the

investors’ assessment regarding the corporate. Handouts, handbooks and

pamphlets provide information regarding the functioning of the stock exchanges.

  Performance inducer: The prices of stocks reflect the performance of the traded

companies. This makes the corporate more concerned with its public image and

tries to maintain good performance.

 Self-regulating organization: The stock exchanges monitor the integrity of the

members, brokers, listed companies and clients. Continuous internal audit

safeguards the investors against unfair trade practices. It settles the dispute

between member brokers, investors and brokers.

Research in Securities Market

In order to deepen the understanding and knowledge about Indian capital market, and to

assist in policy-making, SEBI has been promoting high quality research in capital market. It has

set up an in-house research department, which brings out working papers on a regular basis. In

collaboration with NCAER, SEBI brought out a ‘Survey of Indian Investors’, which estimates

investor population in India and their investment preferences. SEBI has also tied up with reputed

national and international academic and research institutions for conducting research

studies/projects on various issues related to the capital market. In order to improve market

efficiency further and to set international benchmarks in the securities industry, NSE administers

a scheme called the NSE Research Initiative with a view to develop an information base and a

better insight into the working of securities market in India. The objective of this initiative is to

foster research, which can support and facilitate (a) stock exchanges to better design market

micro-structure, (b) participants to frame their strategies in the market place, (c) regulators to

frame regulations, (d) policy makers to formulate policies, and (e) expand the horizon of

knowledge. The Initiative has received tremendous response.

Testing and Certification

The intermediaries, of all shapes and sizes, who package and sell securities, compete with

one another for the chance to handle investors/issuers’ money. The quality of their services

determines the shape and health of the securities market. In developed markets and in some of

the developing markets, this is ensured through a system of testing and certification of persons

joining market intermediaries in the securities market. A testing and certification mechanism that

has become extremely popular and is sought after by the candidates as well as employers is a

unique on-line testing and certification programme called National Stock Exchange’s

Certification in Financial Markets (NCFM). It is an on-line fully automated nation-wide testing

and certification system where the entire process from generation of question paper, invigilation,

testing, assessing, scores reporting and certifying is fully automated - there is absolutely no scope

for human intervention. It allows tremendous flexibility in terms of testing centres, dates and

timing and provides easy accessibility and convenience to candidates as he can be tested at any

time and from any location. It tests practical knowledge and skills, that are required to operate in

financial markets, in a very secure and unbiased manner, and certifies personnel who have a

proper understanding of the market and business and skills to service different constituents of the

market. It offers 9 financial market related modules.

.
 CHAPTER – II

BANK PROFILE

PROFILE OF INDIAN BANK

Indian Bank is one of the indigenous banks of India that emerged as a result of the Swadeshi

Movement during the British Raj. The bank was established on 15th of August, 1907. One of the

prime figures associated with the establishment of the bank was V. Krishnaswamy Iyer, a lawyer

from Madras (Now Chennai). The bank soon spread its wings outside India too, and opened its

branch in Colombo, Sri Lanka in the year 1932 and Rangoon, Burma in 1940. The bank was

further nationalized by the Government of India in the year 1969.

Global Presence

The modest beginning made by the Indian Bank has come a long way since then, with 1642

branches located nationwide within India and Overseas branches in Singapore and Colombo as

of April 2009. The bank also has 40 Overseas Correspondent banks in 70 countries, giving a

strong presence internationally. A 22,000 strong workforce of dedicated employees takes pride in

serving the Indian Bank .

Banking Activities

Indian Bank offers a wide variety of Banking Products and Services to its customers, including

various Deposit Schemes, Loan Options, Financial Services, Stock Investment Services and a

number of specialized services such as Remittance, Collection, 7 Day Banking Branches, Cash

Management and Electronic Funds Transfer. As of April 2009, the bank has Core Banking

Solution (CBS) implemented in its 1642 branches and 66 extension counters. The bank has 755

connected Automatic Teller Machines (ATMs) installed in 225 locations nationwide.

PROFILE OF CANARA BANK

Canara Bank provides various banking products and services primarily in India. The company

offers personal banking products and services, including savings, current, fixed, and recurring

deposits, as well as auto renewal deposits, deposit schemes for senior citizens, and other

deposits; and loan products comprising housing loans, home improvement loans, vehicle loans,

teachers loans, gold loans, pension loans, mortgage loans, reverse mortgage loans for senior

citizens, loans for medical practitioners, and education loans. Canara Bank's personal banking

products and services also comprise ATM and debit cards, inter-bank funds transfer and

electronic funds transfer services, mutual fund products, insurance products, foreign exchange

and international banking services, credit cards, consultancy services, and depository services, as

well as safe deposit lockers, custody services, and retail sale of gold coins. The company was

founded as Canara Bank Hindu Permanent Fund in 1906 and its office is based in Karnataka.

Headquarters

112, J.C. Road,, ,Bangalore; Karnataka; Postal Code: 560002

PROFILE OF STATE BANK OF INDIA

State Bank of India (SBI) is that country's largest commercial bank. The government-

controlled bank--the Indian government maintains a stake of nearly 60 percent in SBI through

the central Reserve Bank of India--also operates the world's largest branch network, with more

than 13,500 branch offices throughout India, staffed by nearly 220,000 employees. SBI is also

present worldwide, with seven international subsidiaries in the United States, Canada, Nepal,

Bhutan, Nigeria, Mauritius, and the United Kingdom, and more than 50 branch offices in 30

countries. Long an arm of the Indian government's infrastructure, agricultural, and industrial

development policies, SBI has been forced to revamp its operations since competition was

introduced into the country's commercial banking system. As part of that effort, SBI has been

rolling out its own network of automated teller machines, as well as developing anytime-

anywhere banking services through Internet and other technologies. SBI also has taken

advantage of the deregulation of the Indian banking sector to enter the bancassurance, assets

management, and securities brokering sectors. In addition, SBI has been working on reigning in

its branch network, reducing its payroll, and strengthening its loan portfolio. In 2003, SBI

reported revenue of $10.36 billion and total assets of $104.81 billion.

Bank of Baroda (BOB) is an Indian government owned banking and financial services

company. It is the third largest public sector bank in India, with 131 million customers, a total

business of US$218 billion, and a global presence of 100 overseas offices. Based on 2019 data, it

is ranked 1145 on Forbes Global 2000 list.[4][5]

The government of India announced the merger of Bank of Baroda, Vijaya Bank and Dena Bank

on September 17, 2018, to create the country's third largest lender. The amalgamation is the first-
ever three-way consolidation of banks in the country, with a combined business of Rs14.82

trillion (short scale), making it the third largest bank after State Bank of India (SBI) and ICICI

Bank.[6]

The Maharaja of Baroda, Maharaja Sayajirao Gaekwad III, founded the bank on 20 July 1908 in

the Princely State of Baroda, in Gujarat.[7] The Government of India nationalized the bank,

along with 13 other major commercial banks of India on 19 July 1969; the bank has been

designated as a profit-making public sector undertaking (PSU).

INDIAN OVERESAS BANK PROFILE

1. Indian Overseas Bank (IOB) was founded on 10th February 1937 by Shri. M.Ct.M.

Chidambaram Chettyar, a pioneer in many fields.

2. The Bank was founded by him with the main objective of specializing in foreign exchange

business in banking to take the Bank across the globe

3. IOB started business simultaneously - at Karaikudi, Chennai and Rangoon in Burma

(presently Myanmar) followed by a branch in Penang, Malaysia.

4. At the dawn of Independence IOB had 38 branches in India and 7 branches abroad -and

Deposits stood at Rs.6.64 Crores and Advances at Rs.3.23 Crores at that time.

5. IOB was one of the 14 major banks that were nationalized in 1969. On the eve of

Nationalization in 1969, IOB had 195 branches in India with aggregate deposits of Rs.67.70

Cr. and Advances of Rs.44.90 Cr.

6. Bank Presently has its Overseas Presence in 4 Countries Singapore, Hongkong, Thailand

and Srilanka.
PUNJAB NATIONAL BANK PROFILE

Punjab National Bank (PNB), India’s first Swadeshi Bank, commenced its operations on

April 12, 1895 from Lahore, with an authorised capital of Rs 2 lac and working capital of Rs

20,000. The Bank was established by the spirit of nationalism and was the first bank purely

managed by Indians with Indian Capital. During the long history of the Bank, 9 banks have been

merged with PNB. Post amalgamation of OBC & UNI w.e.f 01.04.2021, PNB has expanded its

presence across India with a network of 10925 branches, 13914 ATMs & 12346 Business

Correspondents as at the end of 31st December’2021. PNB is the second largest Public Sector

Bank (PSB) in the country with Global Business at Rs.18,09,587 crore. The Bank continues to

maintain its forte in low cost CASA deposits with a share of 44.66%. Bank’s focus has been on

qualitative business growth, recovery and arresting fresh slippages.

 CHAPTER – IV

ANALYSIS AND INTERPRETATION OF DATA

4.1 INTRODUCTION

The process by which sense and meaning are made of the data gathered in qualitative

research, and by which the emergent knowledge is applied to clients' problems. This data

often takes the form of records of group discussions and interviews, but is not limited to

this. Through processes of revisiting and immersion in the data, and through complex

activities of structuring, re-framing or otherwise exploring it, the researcher looks for

patterns and insights relevant to the key research issues and uses these to address the

client's brief. Analysis of data is a process of inspecting, cleansing, transforming,

and modeling data with the goal of discovering useful information, suggesting conclusions,

and supporting decision-making. Data analysis has multiple facets and approaches,

encompassing diverse techniques under a variety of names, in different business, science,

and social science domains.

Data mining is a particular data analysis technique that focuses on modeling and

knowledge discovery for predictive rather than purely descriptive purposes. Business

intelligence covers data analysis that relies heavily on aggregation, focusing on business

information. In statistical applications, some people divide data analysis into descriptive

statistics, exploratory data analysis (EDA), and confirmatory data analysis (CDA). EDA

focuses on discovering new features in the data and CDA on confirming or falsifying

existing hypotheses. Predictive analytics focuses on application of statistical models for

predictive forecasting or classification, while text analytics applies statistical, linguistic,

and structural techniques to extract and classify information from textual sources, a species

of unstructured data. All are varieties of data analysis. Data integration is a precursor to

data analysis, and data analysis is closely linked to data visualization and data

dissemination. The term data analysis is sometimes used as a synonym for data modeling.
 TABLE- 4.1

SENSEX – SUMMARY OF STATISTICS

SUMMARY RESULT

Mean 37736.71

Standard Error 384.86

Median 38069.53

Mode 30196.17

Standard Deviation 5276.90

Range 39525.83

Minimum 8220.39

Maximum 47746.22

Co-efficient of Variation 715.13

SOURCE: NIFTY – Complied by Researcher N=188 days (from 1.4.2021 to 31.12.21)

The above table shows that the sensex movements during the period from April 2021 to

December 2021. In this data found 188 days during the period of study from SENSEX and the

summary of statistics showed that the Mean 37736.71, Standard Deviation 5276.90, Range

39525.83, Co-Efficient of Variation 1.02. Sensex volatility Maximum reached 47746.22 and

Median is 38069.53. It is concluded that the SENSEX movements increased during the period

of study and described that the positive sign from the sensex even after covid pandemic.
 SENSEX

100
150
200
250
300

0
50
192.5

178.850000000001

166.4

161.3

177.15

184.6

188.6

190.75

191.45

201.9

209.850000000001
FIGURE – 1

204.05
10 Days moving average

185.8

188.75

195.95

188.7

234.2

243.850000000001

271.9
SENSEX MOVEMENTS FROM 1.4.2021 TO 31.12.2021 10 Days Moving Average

254.7

276.9
 TABLE 4.2

STATE BANK OF INDIA –SUMMARY OF STATISTICS

SUMMARY RESULT

2
Mean
01.46

Standard Error
2.21

1
Median
92.13

1
Mode
86.55

Standard Deviation
30.31

1
Range
26.85

Minimum
150.85

Maximum
277.70

Co-efficient of Variation
276.70

SOURCE: NIFTY – Complied by Researcher N=188 days (from 1.4.2021 to 31.12.21)

The above table STATE BANK OF INDIA bank share price movements during the period

from April 2021 to December 2021. In this data found 188 days during the period of study.

The summary of statistics showed that the Mean 201.46, Standard Deviation 30.31,

Range 126.85 and Co-Efficient of Variation 267.70. The share price movements from

01-04-2021 to3 1-12-2021. It is concluded that the share price movements increased

during the period of study and described that the positive sign from the State bank Ltd

because of share price increased 84.09016 during the period of study.

 STATE BANK OF INDIA

100
150
200
250
300

0
50
192.5
178.85
166.4
161.3
177.15
184.6
188.6
190.75
191.45
201.9
FIGURE 2

209.85
204.05
188.75
10 DAYS MOVEING AVERAGE

188.75
195.95
188.7
234.2
STATE BANK OF INDIA –SUMMARY OF STATISTICS

243.85
271.9
254.7
274.95
 TABLE 4.3

BANK OF BARODA FIRST BANK – SUMMARY OF STATISTICS

SUMMARY RESULT

Mean 47.79867

Standard Error 0.460897

Median 46.85

Mode 48.35

Standard Deviation 6.319502

Range 30.65

Minimum 36.5

Maximum 67.15

Co-efficient of Variation 66.15

SOURCE: NIFTY – Complied by Researcher N=188 days (from 1.4.2021 to 31.12.21)

The above table BANK OF BARODA FIRST BANK share price movements

during the period from April 2021 to December 2021. In this data found 188 days during

the period of study. The summary of statistics showed that the Mean 47.79867 , Standard

Deviation , Range 6.319502 and Co-Efficient of Variation 66.15. The share price

movements from 01-04-2021 to 31-12-2021. It is concluded that the share price

movements increased during the periodofstudyand described that the positive sign from the

BANK OF BARODA FIRST bank Ltd because of share price changed increased

83.9726% during the period study.

 .
BANK OF BARODA

100
150
200
250
300

50

0
192.5

178.850000000001

166.4

161.3

177.15

184.6

188.6

190.75

191.45

201.9
FIGURE 4.3

209.850000000001
10 Days Moving Average

204.05

185.8

188.75

195.95

188.7
BANK OF BARODA Ltd MOVEMNT FROM 01-04-2021 to 31-12-2021

234.2

243.850000000001

271.9

274.95
 TABILE 4.4

INDIAN BANK FIRST BANK – SUMMARY OF STATISTICS

SUMMARY RESULT

SOURCE:
Mean 60.63723
NIFTY – Complied by
Standard Error 0.802759
Researcher Median 60.125 N=188 days

(from Mode 8.45 1.4.2021 to

Standard Deviation 11.00687
31.12.21)
Mean 60.63723
The above table
Standard Error 0.802759
INDIAN BANK share
Median 60.125
price Mode 58.45 movements

during the Co-Efficient 66.15 period from

April 2021 to December 2021. In this data found 188 days during the period of study. The

summary of statistics showed that the Mean 60.63723 , Standard Deviation , Range 6.319502

and Co-Efficient of Variation 66.15. The share price movements from 01-04-2021 to 31-12-

2021. It is concluded that the share price movements increased during the period of studyand

described that the positive sign from the BANK OF BARODA FIRST bank Ltd because of share

price changed increased 83.9726% during the period study.

 INDIAN BANK

100
150
200
250
300

50

0
192.5

178.850000000001

166.4

161.3

177.15

184.6

188.6

190.75

191.45

201.9
FIGURE 4.4

209.850000000001

204.05
10 Days Moving Average

185.8

188.75

188.7

234.2
INDIAN BANK LTD MOVEMENT from 01-04-2021 TO 31-12-2021

243.850000000001

271.9

254.7

274.95
 TABILE -4.5

CANARA BANK – SUMMARY OF STATISTICS

SUMMARY RESULT

9
Mean
8.12248

0
Standard Error
.881002

Median
100

Mode
89.4

1
Standard Deviation
2.0 4752

Range
60.6

Minimum
76.4

Maximum
137

Co-efficient of Variation
136

SOURCE: NIFTY – Complied by Researcher N=188 days (from 1.4.2021 to 31.12.21)

 The above table CANARA BANK share price movements during the period from April

2021 to December 2021. In this data found 188 days during the period of study. The

summary of statistics showed that the Mean 98.12246 , Standard Deviation 12.04752,

Range 60.6 and Co-Efficient of Variation 136. The share price movements from 01-04-

2021 to 31-12-2021. It is concluded that the share price movements increased during the

period of study and described that the positive sign from the CANARA BANK Ltd

because of share price changed increased 77.16% during the period of study.
 FIGURE – 4.5

CANARA BANK LTD MOVEMENT from 01-04-2021 TO 31-12-2021

10 DAYS MOVEING AVERAGE

300

276.9
263
256.3
250

226.8
207.95

202.8
198.5
191.45

188.75
186.25
186.8

200
184.6
180.9

155.3
CANARA BANK

150

100

50

0
 TABILE 4.6

IOB BANK - SUMMARY OF STATISTICS

SUMMARY RESULT

Mean 9.621505

Standard Error 0.112539

Median 10.1

Mode 9.25

Standard Deviation 1.534828

Range 12.05

Minimum 1.05

Maximum 13.1

Co-efficient of Variation 12.1

SOURCE: NIFTY – Complied by Researcher N=188 days (from 1.4.2021 to 31.12.21)

The above table IOB bank share price movements during the period from April 2021 to

December 2021. In this data found 188 days during the period of study. The summary of

statistics showed that the Mean 9.621505, Standard Deviation 1.534828, Range 12.05

and Co-Efficient of Variation 12.1. The share price movements from 01-04-2021 to 31-

12-2021. It is concluded that the share price movements increased during the period of

study and described that the positive sign from the IOB bank Ltd because of share price

changed increased 1147.619% during the period of study.

 INDIAN OVERSEAS BANK

192.5

178.850000000001

166.4

161.3

177.15

184.6

188.6

190.75

191.45

201.9

209.850000000001
FIGURE 4.6

204.05
10 Days Moving Average

185.8

188.75

195.95

188.7

234.2
INDIAN OVERSEAS BANK LTD MOVEMENT FROM 01-04-2021 TO 31-1-2021

243.850000000001

271.9

254.7
0
50
100
150
200
250
300

277.7
 TABILE 4.7

PUNJAB NATIONAL BANK – SUMMARY OF TATISTICS

SUMMARY RESULT

Mean 31.9961

Standard Error 0.244412

Median 32.27

Mode 32.85

Standard Deviation 3.342288

Range 14.65

Minimum 26.6

Maximum 41.25

Co-efficient of Variation 40.25

SOURCE: NIFTY – Complied by Researcher N=188 days (from 1.4.2021

to 31.12.21)

The above table PUNJAB NATINAL BANK share price movements during the period

from April 2021 to December 2021. In this data found 188 days during the period of study. The

summary of statistics showed that the Mean31.9961 , Standard Deviation 3.342288 , Range

14.65 and Co-Efficient of Variation 40.25. The share price movements from 01-04-2021 to 31-

12-2021. It is concluded that the share price movements increased during the period of study

and described that the positive sign from the PUNJAB NATIONAL BANK Ltd because of share

price changed increased 55.07519% during the period of study.

 PUNJAB NATIONAL BANK

0
100
150
200
250
300

50
192.5

178.850000000001

166.4

161.3

177.15

184.6

188.6

190.75

191.45
FIGURE – 4.7

201.9

209.850000000001

204.05
10 DAYS MOVEING AVERAGE

185.8

188.75

195.95

188.7

234.2

243.850000000001

271.9

254.7

276.9
 CHAPTER – V

FINDINGS, SUGGESTION & CONCLUSION

5.1 INTRODUCTION

Stock prices change every day by market forces. By this we mean that share

prices change because of supply and demand. If more people want to buy a stock (demand) than

sell it (supply), then the price moves up. Conversely, if more people wanted to sell a stock than

buy it, there would be greater supply than demand, and the price would fall. Understanding

supply and demand is easy. What is difficult to comprehend is what makes people like a

particular stock and dislike another stock. This comes down to figuring out what news is positive

for a company and what news is negative. There are many answers to this problem and just about

any investor you ask has their own ideas and strategies.

5.2 FINDINGS

 Sensex movements found that 188 days from 1-4-2021 to 31-12-2021. Mean ,

Standard Deviation 5276.90, Range 39525.83, Co-Efficient of Variation 1.02. Sensex volatility

Maximum reached 47746.22 and Median is 38069.53. It is concluded that the SENSEX

movements increased during the period of study and described that the positive sign from the

sensex even after covid pandemic.

 State bank of india movements found that 188 days from 01-04-2021 to 31-12-

2021. Mean 201.46, Standard Deviation 30.31, Range 126.85 and Co-Efficient of Variation

71
276.70. It is concluded that the share price movements increased during the period of study and

described that the positive sign from the State bank of india Ltd because of share price changed

increased 83.13% during the period of study.

 Bank of baroda movements found that 188 days from 01-04-2021 to 31-12-2021.

Mean 47.79867, Standard Deviation 6.319502, Range 30.65 and Co-Efficient of Variation 66.

15. It is concluded that the share price movements increased during the period of study and

described that the positive sign from the Bank of baroda Ltd because of share price increased

95.51% during the period of study.

 Indian bank movements found that 188 days from 01-04-2021 to 31-12-2021.

Mean 60.63723, Standard Deviation 11.00687- Range 52.25 and Co-Efficient of Variation

94.9. It is concluded that the share price movements increased during the period of study and

described that the positive sign from the Bank of baroda Ltd because of share price increased

95.51% during the period of study.

 Canara bank movements found that 188 days from 01-04-2021 to 31-12-2021.

Mean 98.12246, Standard Deviation 12.04752- Range 60.6 and Co-Efficient of Variation 136.

It is concluded that the share price movements increased during the period of study and

described that the positive sign from the Canara bank Ltd because of share price increased

95.51% during the period of study.

 Indian overseas bank movements found that 188 days from 01-04-2021 to 31-12-

2021. Mean 9.621505, Standard Deviation 1.534828 - Range 12.05 and Co-Efficient of

Variation 12.1.It is concluded that the share price movements increased during the period of

study and described that the positive sign from the Indian overseas bank Ltd because of share

price increased 95.51% during the period of study.

72
  Punjab national bank movements found that 188 days from 01-04-2021 to 31-12-

2021. Mean 31.9961, Standard Deviation 3.342288 - Range 14.65 and Co-Efficient of Variation

40.25. It is concluded that the share price movements increased during the period of study and

described that the positive sign from the Indian overseas bank Ltd because of share price

increased 95.51% during the period of study.

5.3 SUGGESTION

 To help the investors (current and potential) to understand the impact of

important happenings on the Indian Stock exchange.

 Every investor is recommended to make a thorough analysis of the capital

market, about the company and industry before making any investment

decisions.

 It is suggested to sell the overvalued shares such as HCL technologies and mind

tree as their shares prices have a tendency to decrease in the future.

 Investing in one share alone is not suggested as returns may not be favourable

always. Investing in multiple or diversified shares reduces the risk and provides

a stable returns.

 Using technical chart analysis you can analyze stock market or individual market

tickers that could be shares, commodities, currencies or bonds.

 Many people afraid that technical analysis of stock charts is complicated issue.

Well it can be if you want use many tools and indicators available.

73
 When using chart analysis you’ll find everything important about the company’s

shares is included in the price, and therefore you need only watch and analyze

price movements. That’s great because you don’t need to learn to read annual

reports. For instance, what do earning, P/E and so on mean!

 And if you are investor who likes to study fundamental values then it is good for

you too. Technical reading of a price chart will provide very important know how

for timing of your purchases and sells.

 The most vital problem spotted is of ignorance. Investors should be made aware

of the benefits. Nobody will invest until and unless he is fully convinced.

Investors should be made to realize that ignorance is no longer bliss and what they

are losing by not investing.

 Before making any investment financial advisors should first enquire about the

risk tolerance of the investors/customers, their need and time (how long they want

to invest). By considering these three things they can take the customers into

consideration. This analysis of share price charts also provides a good info that

helps you with timing entries for your trades.

 The technical chart reading give you necessary info that should be used when you

make decision what to do with opened trade or with portfolio. You can decide

about the right trade management steps that must be done.

74
5.4 CONCLUSION

The banking company role is vital in Indian Economy. The stock market is

moving on day by day increase and decrease but investor should know the stock concepts

because of safety of investment. Basically investors should aware the stock market before

investment but investor is not understood stock concepts and related factors. In this study one

parameter used how to buy the shares in public sector banks stocks in India. The moving average

is best choose of selection of stock price movements, stock volatility, technical analysis concepts

also used in this study. Even though market movements watch moving average basis because

moving average determined up trend and low trend of stock price movements. The moving

average was observed during the study period public sector bank was good movements after

covid pandemic not only India and also allover world good trend in industrial sector.

75