A PROJECT REPORT ON

“An Overview Study of Stock Exchange Market in India ”

With reference to

Submitted in the Partial Fulfillment of the Requirement for the award of the Degree of
Master of Business Administration

Institute of Management Studies, MGKVP

THE SHINE PROJECT

Session 2020-2022

SUPERVISED BY:

Mr. Vivek Kumar Srivastava Sir (Assistant Professor), IMS, MGKVP

Submitted To: Submitted By:

Professor Ashok Kumar Mishra Nitesh Kumar Sharma

Director, Institute of Management Studies MBA 3rd Semester

Mahatma Gandhi Kashi Vidyapith Roll No. : 10021527044
Enrollment No. :KA2K21/100527044
 DECLARATION

This is to declare that the work entitled “An overview study of stock exchange
market in India” is a bonafide work undertaken by me under the guidance and
supervision of Mr. Vivek Kumar Srivastava Sir (Assistant Professor) IMS, Mahatma
Gandhi Kashi Vidyapeeth, Varanasi, for the partial fulfillment of requirement of the
degree of M.B.A.

Date: Nitesh Kumar Sharma

Place: Varanasi Enrollment No. :KA2K21/100527044

RollNo.:10021527044
 ACKNOWLEDGEMENT
I express my deep sense of gratitude to “Almighty God” who is guiding me in this world
with a previous knowledge and general plan and direction. Without his blessings this work could
not have been completed.
I am also grateful to Professor Ashok Kumar Mishra Sir, Director, Mahatma Gandhi Kashi
Vidyapith, Varanasi, who provided me with valuable guidance and blessings for the completion
of this work. This is because of his great support, guidance and constant encouragement and
inspiration that I have been able to complete this work. I am also thankful to Mr. Vivek Kumar
Srivastava Sir (Assistant Professor) IMS, Mahatma Gandhi Kashi Vidyapeeth, Varanasi, for
providing the guidance and blessings time to time. This dissertation is possible only because of his
constant encouragement and inspiration.
I highly value the support and help of the teaching staff associated with faculty of IMS,
Mahatma Gandhi Kashi Vidyapith, Varanasi, and all other persons who helped me to materialize
this work directly or indirectly.
I would also like to extent my gratitude towards the people who are not my family but
became my support system i.e. my friends in Varanasi. Last, but definitely not the least, it is my
pious duty to record my heartiest gratitude to my family, and especially my parents who have
nourished and nurtured me from very beginning and taught the first lesson of life and had taken all
pains to bring me to this stage of presenting this internship report.

Date: Nitesh Kumar Sharma

Place: Varanasi Enrolment No. KA2K21/100527044
Roll No. : 10021527044
INTERNSHIP CERTIFICATE
 PREFACE

Master of business administration (MBA) is one of the most reputed

professional courses in fields of management. This course includes
both theory and application part in form of the two months training
required to undergo in an organization. Summer training report is
an outcome of the exercise by means of which student learn a lot of
things which can’t be taught in the class of room. During the
summer training, students come to know about the principal &
practices of management and their application in real working
condition in an organization.
 CONTENTS

S. No. TOPIC

1 Introduction

2 History of Stock Exchange

3 Types of Stocks

4 Importance & Role of Stock Exchange in Indian Market

5 Indian Stock Market, NSE & BSE

6 Overview Of The Regulatory Framework Of The Capital Market

In India

7 Data Analysis & Interpretation

8 Findings

9 Conclusions

10 References
 INTRODUCTION

A stock exchange, share market or bourse is a corporation or mutual organization which

provides "trading" facilities for stock brokers and traders, to trade stocks and other securities.
Stock exchanges also provide facilities for the issue and redemption of securities as well as other
financial instruments and capital events including the payment of income and dividends. The
securities traded on a stock exchange include: shares issued by companies, unit trusts and other
pooled investment products and bonds. To be able to trade a security on a certain stock
exchange, it has to be listed there. Usually there is a central location at least for recordkeeping,
but trade is less and less linked to such a physical place, as modern markets are electronic
networks, which gives them advantages of speed and cost of transactions. Trade on an exchange
is by members only. The initial offering of stocks and bonds to investors is by definition done in
the primary market and subsequent trading is done in the secondary market. A stock exchange is
often the most important component of a stock market. Supply and demand in stock markets are
driven by various factors which, as in all free markets, affect the price of stocks (see stock
valuation).There is usually no compulsion to issue stock via the stock exchange itself, nor must
stock be subsequently traded on the exchange. Such trading is said to be off exchange or over- the-
counter. This is the usual way that bonds are traded. Increasingly, stock exchanges are part a global
market for securities. A stock exchange is simply a market that is designed for the sale and
purchase of securities of corporations and municipalities. A stock exchange sells and buys stocks,
shares, and other such securities. In addition, the stock exchange sometimes buys and sells
certificates representing commodities of trade. This article discusses:

What is the principle behind the operation of stock exchanges?

What are the functions and processes involved in stock exchanges?

Know in detail about major stock exchange

 History of Stock Exchanges:

In 11th century France the courtiers de change was concerned with managing and regulating the debts
of agricultural communities on behalf of the banks. As these men also traded in debts, they could be
called the first brokers.

Some stories suggest that the origins of the term "bourse" come from the Latin bursa meaning a bag because,
in 13th century Bruges, the sign of a purse (or perhaps three purses), hung on the front of the house where
merchants met.

However, it is more likely that in the late 13th century commodity traders in Bruges gathered inside the
house of a man called Vander Burse, and in 1309 they institutionalized this until now informal meeting
and became the "Bruges Bourse". The idea spread quickly around Flanders andneigh boring counties and
"Bourses" soon opened in Ghent and Amsterdam.
 Types Of Stock

There are different types of stocks to choose in the stock market. While you do not necessarilyhave to be an
expert on all the types of stocks available in stock market content, being able to differentiate and choose
stocks is crucial to stock market investing. This article helps you to know more on:
What re the various types of stocks available?

What are the features of preferred stocks?

What are the characteristics of blue chip stocks?

There are different types of stocks to choose in the stock market. While you do not necessarily
have to be an expert on all the types of stocks available in stock market content, being able to
differentiate and choose stocks is crucial to stock market investing. Depending on your goals and
your investment, you may simply find that some stocks are better suited to your needs than
others. At the very least, being able to tell the difference between preferred and common stocks
can help you get started in investing.
Preferred Stocks and Common Stocks

All stocks are generally designated as preferred or common. Common stocks are stocks that offeryou
a bit of ownership of a company. Each common stock you have offers you a specific amount of
ownership, entitles you to some dividends and allows you one vote for each share you own in electing
directors or making key business decisions. Common stocks in this sense are different from debentures
or bonds, which are money given to a company as a loan in return for the promise of specific interest.
Preferred stock offers you preferential treatment when it comes to paying out of
dividends. If the company goes bankrupt, stocks holders holding preferred equities get faster access
to any assets not used towards paying debts. If you have preferred cumulative stock, your position is
secure. This type of stock allows unpaid dividends to be accrued. If a company cannot pay
dividends one year, your dividends accrue until the company can pay.
During such period all the money owed over the previous years will be paid. Those holding
preferred types of stock usually have no voting ability and these stocks only get their pre-
determined dividend and not more than that. This is to offset the other advantages of preferred
status.

Growth of Stocks

Growth stocks are stocks of companies that are experiencing rapid growth and are expected to
continue growing in the future. A company with growth stocks is generally a stable company that
is experiencing larger sales as well as incurring reasonable expenses. Such a company invests
money in new products. These stocks are attractive to investors since they allow investors to make
money from a growing and prospering company. However, these stocks can also be a risk. These
stocks are often expensive, and of course there is no guarantee that a company will continue to
grow and prosper as projected

Dividend Stocks

Dividend stocks are those stocks that pay a yearly dividend or cash amount in addition to having
an inherent buying and selling value. Having high dividend stocks means that you make money
each year that a company profits. This article takes you through: Dividend stocks are those stocks
that pay a yearly dividend or cash amount in addition to having an inherent buying and selling
value. Having high dividend stocks means that you make money each year that acompany profits.
The best dividend stocks are used by wealthy people in order to create a passive income. Thanks
to the Internet, almost any investor can start investing in these stocks. It is easy to find a list of
dividend paying stocks and even get newsletters that feature monthly dividend stocks right in your
mailbox or email inbox.
 The Importance of the Stock Exchange

Stock exchanges perform important roles in national economies. Most importantly, they encourage
investment by providing places for buyers and sellers to trade securities. This investment, in turn,
enables corporations to obtain funds to expand their businesses.
Corporations issue new securities in what is known as the primary market, usually with the help
of investment bankers (see Investment Banking). The investment bank acquires the initial issue of
the new securities from the corporation at a negotiated price and then makes the securities available
for its clients and other investors in an initial public offering (IPO). In this primary market,
corporations receive the proceeds of security sales. After this initial offering the securities are
bought and sold in the secondary market. The corporation is not usually involved in the trading of
its stock in the secondary market.
Stock exchanges essentially function as secondary markets. By providing investors the
opportunity to trade financial instruments, the stock exchanges support the performance of the
primary markets. This arrangement makes it easier for corporations to raise the funds that they
need to build and expand their businesses.
Although corporations do not directly benefit from secondary market transactions, the
managers of a corporation closely monitor the price of the corporation's stock in secondary
markets. One reason for this concern involves the cost of raising new funds for further business
expansion. The price of a company's stock in the secondary market influences the amount of funds
that can be raised by issuing additional stock in the primary market. Corporate managers also pay
attention to the price of the company's stock in secondary markets because it affects the financial
wealth of the corporation's owners—the stockholders. If the price of the stock rises, then the
stockholders become wealthier. This is likely to make them happy with the company's
management. Typically, managers own only small amounts of a corporation's outstanding shares.
If the price of the stock declines, the shareholders become less wealthy and are likely to be unhappy
with management. If enough shareholders become unhappy, they may move to replace the
corporation's managers. Most corporate managers also receive options to buy company stock at a
selected price, so they are motivated to increase the value of the stock in the secondary market.Stock
exchanges encourage investment by providing this secondary market. Stock exchanges also encourage
investment in other ways.
They protect investors by upholding rules and regulations that ensure buyers will be treated
fairlyand receive exactly what they pay for. Exchanges also support state-of-the-art technology
and the business of brokering. This support helps traders buy and sell securities quickly and
efficiently. Of course, being able to sell a security in the secondary market increases the relative
safety of investing because investors can unload a stock that may be on the decline or that faces
an uncertain future.
The Role of Stock Exchanges:

Stock exchanges have multiple roles in the economy, this may include the following:

Raising capital for businesses:

The Stock Exchange provides companies with the facility to raise capital for expansion
throughselling shares to the investing public.

Mobilizing savings for investment:

When people draw their savings and invest in shares, it leads to a more rational allocation of
resources because funds, which could have been consumed, or kept in idle deposits with banks,
are mobilized and redirected to promote business activity with benefits for several economic
sectors such as agriculture, commerce and industry, resulting in a stronger economic growth and
higher productivity levels and firms.
Facilitating company growth:

Companies view acquisitions as an opportunity to expand product lines, increase distribution

channels, hedge against volatility, increase its market share, or acquire other necessary business
assets. A takeover bid or a merger agreement through the stock market is one of the simplest and
most common ways for a company to grow by acquisition or fusion.

Redistribution of wealth:

Stocks exchanges do not exist to redistribute wealth. However, both casual and professional stock
investors, through dividends and stock price increases that may result in capital gains, will share
in the wealth of profitable businesses.

Corporate governance:

By having a wide and varied scope of owners, companies generally tend to improve on their
management standards and efficiency in order to satisfy the demands of these shareholders and the
more stringent rules for public corporations imposed by public stock exchanges and the
government. Consequently, it is alleged that public companies (companies that are owned by
shareholders who are members of the general public and trade shares on public exchanges) tend to
have better management records than privately-held companies (those companies where shares
are not publicly traded, often owned by the company founders and/or their families and heirs, or
otherwise by a small group of investors).

Creating investment opportunities for small investors:

As opposed to other businesses that require huge capital outlay, investing in shares is open to both
the large and small stock investors because a person buys the number of shares they can afford.
Therefore the Stock Exchange provides the opportunity for small investors to own shares of the
same companies as large investors.
Government capital-raising for development projects:

Governments at various levels may decide to borrow money in order to finance infrastructure
projects such as sewage and water treatment works or housing estates by selling another category
of securities known as bonds. These bonds can be raised through the Stock Exchange whereby
members of the public buy them, thus loaning money to the government. The issuance of such
bonds can obviate the need to directly tax the citizens in order to finance development, although
by securing such bonds with the full faith and credit of the government instead of with collateral,
the result is that the government must tax the citizens or otherwise raise additional funds to make
any regular coupon payments and refund the principal when the bonds mature.

Barometer to the Economy

At the stock exchange, share prices rise and fall depending, largely, on market forces. Share prices
tend to rise or remain stable when companies and the economy in general show signs of stability
and growth. An economic recession, depression, or financial crisis could eventually lead to a stock
market crash. Therefore the movement of share prices and in general of the stock indexes can be
an indicator of the general trend in the economy.
 Indian Stock Market

Indian Stock Markets is one of the oldest in Asia. Its history dates back to nearly 200 years ago.
The earliest records of security dealings in India are meager and obscure. The East India
Company was the dominant institution in those days and business in its loan securities used to be
transacted towards the close of the eighteenth century. By 1830's business on corporate stocks
and shares in Bank and Cotton presses took place in Bombay. Though the trading list was
broader in 1839, there were only half a dozen brokers recognized by banks and merchants during
1840 and 1850. The 1850's witnessed a rapid development of commercial enterprise and
brokerage business attracted many men into the field and by 1860 the number of brokers
increased into 60. In 1860-61 the American Civil War broke out and cotton supply from United
States to Europe was stopped; thus, the 'Share Mania' in India began. The number of brokers
increased to about 200 to 250.

At the end of the American Civil War, the brokers who thrived out of Civil War in 1874, found
a place in a street (now appropriately called as Dalal Street) where they would conveniently
assemble and transact business. In 1887, they formally established in Bombay, the "Native Share
and Stock Brokers' Association”, which is alternatively known as “The Stock Exchange". In
1895, the Stock Exchange acquired a premise in the same street and it was inaugurated in 1899.
Thus, the Stock Exchange at Bombay was consolidated. The Indian stock market has been
assigned an important place in financing the Indian corporate sector. The principal functions of
the stock markets are:

 enabling mobilizing resources for investment directly from the investors

 providing liquidity for the investors and monitoring.

 Disciplining company management

 National Stock Exchange

With the liberalization of the Indian economy, it was found inevitable to lift the Indian stock
market trading system on par with the international standards. On the basis of the
recommendations of high powered Pherwani Committee. The National Stock Exchange was
incorporated in 1992 by Industrial Development Bank of India, Industrial Credit and Investment
Corporation of India, Industrial Finance Corporation of India, all Insurance Corporations,
selected commercial banks and others.

The National Stock Exchange (NSE) is India's leading stock exchange covering various cities
and towns across the country. NSE was set up by leading institutions to provide a modern, fully
automated screen-based trading system with national reach. The Exchange has brought about
unparalleled transparency, speed & efficiency, safety and market integrity. It has set up facilities
that serve as a model for the securities industry in terms of systems, practices and procedures
NSE has several advantages over the traditional trading exchanges. They are as follows:

 NSE brings an integrated stock market trading network across the nation.

 Investors can trade at the same price from anywhere in the country since inter-market
operations are streamlined coupled with the countrywide access to the securities.
 Delays in communication, late payments and the malpractice’s prevailing in the traditional
trading mechanism can be done away with greater operational efficiency and informational
transparency in the stock market operations, with the support of total computerized network.

NSE Nifty

S&P CNX Nifty is a well-diversified 50 stock index accounting for 22 sectors of the economy.
It is used for a variety of purposes such as benchmarking fund portfolios, index based derivatives
and index funds.

NSE came to be owned and managed by India Index Services and Products Ltd. (IISL), which is
a joint venture between NSE and CRISIL. IISL is India's first specialized company focused upon
the index as a core product. IISL have a consulting and licensing agreement with Standard & Poor's
(S&P), who are world leaders in index services. CNX stands for CRISIL NSE Indices. CNX
ensures common branding of indices, to reflect the identities of both the promoters, i.e. NSE and
CRISIL. Thus, 'C' Stands for CRISIL, 'N' stands for NSE and X stands for Exchange orIndex. The
S&P prefix belongs to the US-based Standard & Poor's Financial Information Services.
 Bombay Stock Exchange

The Bombay Stock Exchange is one of the oldest stock exchanges in Asia. It was established
as "The Native Share & Stock Brokers Association" in 1875. It is the first stock exchange
in the country to obtain permanent recognition in 1956 from the Government of India under the
Securities Contracts (Regulation) Act, 1956. The Exchange's pivotal and pre-eminent role in the
development of the Indian capital market is widely recognized and its index, SENSEX, is
tracked worldwide.India’s economy has been one of the talks of the business world. Starting
with the information technology and moving rapidly to outsourcing, this foreign market has truly
emerged in the past two years. With globalization on the rise and a strong demand for
information technology and outsourcing, India will look attractive not only for investors but for
businesses looking to go overseas. This expansion will not only help India’s economy as money
is invested into the country, but companies will benefit due to lower operating costs and higher
revenue. India is benefiting from this shift of home front to the idea of outsourcing. With India
surging, so is the Bombay Sensex, as it reflected the state of the economy.

The Bombay Stock Exchange is known as the oldest exchange in Asia. It traces its history to
the 1850s, when 4 Gujarati and 1 Parsi stockbroker would gather under banyan trees in front of
Mumbai's Town Hall. The location of these meetings changed many times, as the number of
brokers constantly increased. The group eventually moved to Dalal Street in 1874 and in 1875
became an official organization known as 'The Native Share & Stock Brokers Association'.
Later the name changed to Bombay Stock Exchange or the BSE.
SENSEX

The Stock Exchange, Mumbai (BSE) in 1986 came out with a stock index that subsequently
became the barometer of the Indian stock market.

SENSEX is not only scientifically designed but also based on globally accepted construction
and review methodology. First compiled in 1986, SENSEX is a basket of 30 constituent stocks
representing a sample of large, liquid and representative companies. The base year of SENSEX
is 1978-79 and the base value is 100. The index is widely reported in both domestic and
international markets through print as well as electronic media.

Due to is wide acceptance amongst the Indian investors; SENSEX is regarded to be the pulse of
the Indian stock market. As the oldest index in the country, it provides the time series data over
a fairly long period of time. Small wonder, the SENSEX has over the years become one of the
most prominent brands in the country The SENSEX captured all these events in the most
judicial manner. One can identify the booms and busts of the Indian stock market through
SENSEX. The launch of SENSEX in 1986 was later followed up in January 1989 by
introduction of BSE National Index (Base: 1983-84 = 100). It comprised of 100 stocks listed at
five major stock exchanges. The values of all BSE indices are updated every 15 seconds during
the market hours and displayed through the BOLT system, BSE website and news.
COMPANY PROFILE
 Name Shine Projects
Shine Projects is a pioneer in conducting workshops for students
and companies across the globe, to address the gaps and to take
Overview
seekers to the next level. We hire Marketing and Business
Development interns across the globe.
Website https://www.shineprojects.in/
Growth Stage Pre-Revenue Startup
Employees Unlisted
Globalization Global
Platform
No Experience
Experience
Remote
Yes
Collaboration

Open to All Undergraduate / All Graduate

Sponsorship
No
Available
 Follow-on Projects
 Formal Internship
Hiring
Potential  Entry Level Full-Time
 Upper Level Full-Time
 About founder

Venkata Harsha
Founder and Managing Director, Shine Projects

He holds an MBA in Finance and Marketing, along with many certification modules conducted by BSE and
NSE. He is a certified stock market analyst and a macroeconomics expert.

A passionate educator and lecturer, he has worked on international platforms, catering to audiences in India,
Middle East, U.K, and the U.S. He started Shine Projects in 2017(Jan) with the mission of providing sound
financial literacy and awareness to everyone. He strives to make his modules affordable and easily
accessible for all. His in depth knowledge and drive, coupled with ability to think on his feet and innovate
has today turned his passion project into India’s fastest growing education company.

One of the strongest pillars of his initiative has been his ability to connect and interact with his students with
absolute ease and comfort. It is due to his vast experience in taking offline & online courses, that he can
ensure all his classes are highly interactive, which enables him to make even the most complicated of
concepts, easily understandable to everyone.

In addition to being an educator, he has also written extensively on financial markets, even providing his
insights and inputs to many acclaimed academic journals and papers, and is also an active guest speaker.
Since equal access to education is a an issue that is absolutely close to his heart, apart from training students
and interns, he also volunteers at Make a Difference to teach English to the underprivileged.
Overview Of The Regulatory Framework Of The Capital Market In
India

India has a financial system that is regulated by independent regulators in the sectors of

banking, insurance, capital markets and various service sectors. The Indian Financial system

is regulated by two governing agencies under the Ministry of Finance. They are

1. Reserve Bank of India

The RBI was set up in 1935 and is the central bank of India. It regulates the financial

and banking system. It formulates monetary policies and prescribes exchange control

norms.

2. The Securities Exchange Board of India

The Government of India constituted SEBI on April 12, 1988, as a non-statutory body

to promote orderly and healthy development of the securities market and to provide

investor protection. Department Economic Affairs : The capital markets division of

the Department of Economic Affairs regulates capital markets and securities

transactionsThe capital markets division has been entrusted with the responsibility of

assisting the Government in framing suitable policies for the orderly growth and

development of the securities markets with the SEBI, RBI and other agencies. It is also

responsible for the functioning of the Unit Trust of India (UTI) and Securities and

Exchange Board of India (SEBI).

The Capital Market is governed by:

 Securities Contract (Regulation) Act, 1956

 Securities Contract (Regulation) Rules, 1957

 SEBI Act, 1992

 Companies Act 1956

 SEBI (Stock Brokers and Sub Brokers) Rules, 1992

 Exchange Bye-Laws Rules & Regulations

Self-regulating Role of the Exchange

The exchange functions as a Self Regulatory Organization with the parameters laid down by the

SCRA, SEBI Act, SEBI Guidelines and Rules, Bye-laws and Regulations of the Exchange. The

Governing Board discharges these functions. The Executive Director has all the powers of the

governing board except discharging a member indefinitely or declaring him a defaulter or

expelling him. The Executive Director takes decisions in the areas like surveillance, inspection,

investigation, etc. in an objective manner as per the parameters laid down by the governing

board or the statutory committees like the Disciplinary Action Committee.

 Trading With Stock Market

This section will introduce us about the process and instruments used to help a customer or a
client to trade with arcadia securities. This process is almost similar to any other trading firm but
there will be some difference in the cost of brokerage commission.

Trading: It is a process by which a customer is given facility to buy and sell share this buying
and selling can only be done through some broker and this is where Arcadia helps its customer.
A customer willing to trade with any brokerage house need to have a demat account, trading
account and saving account with a brokerage firm. Any one having following document can open
all the above mentioned account and can start trading.

Document Required

 3 photographs ( signed across)

 Photo Identification Proof - any of the following - Voter ID/Driving License/Passport.

 Address Proof any of the following - Voter ID/Driving License/ Passport/ Bank statement or

pass book sealed and attestation by bank official/ BSNL landline bill.

 A crossed Cheque favoring “Karvy Stock Broking”. Of the required amount. The amount for
Demat as well as trading will be Rs. 900/-(free Demat +900 Trading Account) the minimum
amount being Rs. 900 a cheque can be given for a larger amount.
 Copy of PAN Card is mandatory.

 Registration Kit

 CDSL Demat Kit

 Bank and address proof declaration.

 PAN name discrepancy form.

 These documents may not be consumer friendly but it is to avoid illegal transaction and to
prevent black money this ensures that money invested is accounted.
Techniques and Instruments for Trading - The various techniques that are available in the
hands of a client are:-

1. Delivery

2. Intraday

3. Future

4. Forwards

5. Options

6. Swaps

Basic Requirement for doing Trading

Trading requires Opening a Demat account. Demat refers to a dematerialized account. You need
to open a Demat account if you want to buy or sell stocks. So it is just like a bank account where
actual money is replaced by shares. We need to approach the Depository Participants (DP, they
are like bank branches), to open Demat account. A depository is a place where the stocks of
investors are held in electronic form. The depository has agents who are called depository
participants (DPs).Think of it like a bank. The head office where all the technology rests and
details of all accounts held is like the depository. And the DPs are the branches that cater to
individuals. There are only two depositories in India –

 The National Securities Depository Ltd (NSDL) and the

 Central Depository Services Ltd (CDSL).

 Data Analysis And Interpretation

Demographic Profile of investors

Demographics No. of respondents Percentage of respondents

Age

Less than 20 years 0 0

20-40 20 40

Greater than 40 30 60

Total 50 Total 50
Qualification

Matric 0 0

Under Graduate 25 50

Post Graduate 25 50

Total 50 Total 100

Occupation

Service 19 38

Profession 6 12

Business 15 30

Student 10 20
Total 50 Total 100

Income (per month)

Less than Rs.20000

 Rs.20000-40000 10 20

Greater than 40000 25 50

15 30

Total 100 Total 100

Analysis & Interpretation: It was found that the major population of investors was greater than
40yrs and 60% was of 20-40 yrs. And 50% respondents were under graduate and 50% were post
graduate. 35% of respondents were doing service. And majority of respondents i.e. 50% earn
income between Rs.20000-40000 per month. It means majority of investors was greater than 40
years having income in between Rs 20000-40000.
 Awareness regarding types of Investment Instruments

Type of investment option the person is aware of

Types of No. of Percentage of

Investment Respondents Respondents
Instruments

Shares 15 30%

Mutual Funds 23 46%

Debentures 5 10%

Bonds 5 10%

Derivatives 2 4%

Total 50 100%
Figure No.6.1 Type of investment option the person is aware of

Shares 10% 4%
30%
10%
Mutual Funds

Debentures

Bonds
46%
Derivatives

Analysis & Interpretation Above pie-chart shows that 45% investors were aware of the mutual

fund, 25% investors were aware of shares, 15% investors were aware of debentures, 10%investors

were bonds. It means majority of persons aware about mutual fund whereas shares and debentures

were of second importance.

 To know the type of investment option the person has been investing

Investment alternative No. of Respondents Percentage of Respondents

Shares 15 30%

Mutual Funds 15 30%

Debentures 10 20%

Bonds 5 10%

Derivatives 5 10%

Total 50 100%

Type of investment option the person has been investing

Shares Mutual Funds Debentures Bonds Derivatives

10%
10% 30%

20%

30%

Analysis & Interpretation: From the survey it was found that 30% respondents invest in Mutual
funds, 25% invest in Shares and 20% invest in Debentures. Thus, it can be stated that maximum
people invest in Mutual Funds whereas shares are having 2nd importance.
 To know the frequency of investment by the Respondents.

Table No. 6.3 Frequency of investment

Frequency of Investment No. of Respondents Percentage of Respondents

Daily 0 0%

Weekly 10 20%

Monthly 24 48%

Yearly 16 32%

Total 50 100%

Figure No.6.3 Frequency of Investment

Daily Weekly Monthly Yearly

0%

20%
32%

48%

Analysis & Interpretation:

From the above table & chart it was found that 45 respondents invest monthly, 35 invest yearly
and there were 20 respondents who invest daily. Thus, it can be stated that majority of the investors
invest monthly in stock market.
 To know the percentage of income that respondent invest annually

Annual Income No. of Respondents Percentage of

Invested Respondents

Up to 10% 7 14%

10-15% 11 22%

15-20% 20 40%

More than 20% 12 24%

Total 50 100%

Figure No. 6.4 The percentage of income that respondent invest annually

14%
24%

22%

40%

Up to 10% 10-15% 15-20% More than 20%

Analysis & Interpretation:

From the above table & chart, it was found that 40 respondents invest 15-20% of their annual
income, 24 respondents invest more than 20% of their annual income, 22 respondents invest up
to 10-15% of their income and 14 respondents invest up to 10% of their income in different
investment avenues. Thus, it can be concluded that majority of investors invest 10% to 20% of
their monthly income.
 Statement 5. To know the respondent’s influence on Investment decision.

Sources No. of Respondents Percentage of Respondents

Self 24 48%

Friends & Relatives 10 20%

Service providers & consultants 6 12%

Newspapers & Advertisement 5 10%

Agents 3 6%

Workshops & Seminars 2 4%

Total 50 100%

Table No.6.5 The respondent’s influence on Investment decision

Figure No.6.5 The respondent’s influence on Investment decision
Self Friends & Relatives
Service providers & consultants
Agents 4% Workshops & Seminars

6%
10%
48%
12%

20%

Analysis & Interpretation:

From the above table & chart, it was found that multiple aspects for investing influenced
respondents.48% respondents take investment decision on the basis of their personal evaluation
where as 20% respondents invest because of influence of friends & relatives, the consultants
influences 12% respondent and the advertisement influences 10% respondents. It can be stated that
majority of the persons are influenced by their own while opting for investment tool.
 Statement 6. To Know The Factors That Were Considered While Investing.

Investment Factors No. of Respondents Percentage of Respondents

Return on 15 30%

Investment
Tax benefits 9 18%

Capital appreciation 7 15%

Maturity period 3 6%

Risk 6 12%

Safety of principal 3 6%

Liquidity 7 14%

Total 50 100%

The Factors That Were Considered While Investing

Return on investment Tax benefits Capital appreciation

Maturity period Risk Safety of principal

6% 14% 30%
12%

18%
14%
6%

Analysis & Interpretation:

From the survey it was found that the maximum respondents considered return on investment was
most important factor, 18% respondents considered tax benefits as an important factor and 14%
respondents considered capital appreciation as an important factor.
 Statement 7. To Know Investor’s Action In Case Of Stock Market drop.

Table No. 6.7 The Investor’s Action In Case Of Stock Market drop

Investor’s preference in case No. of Respondents Percentage of Respondents

of losses
Transfer funds into secure 15 25%

Investment
Wait to see if investment 20 40%

Improves
Invest more funds 13 30%

Withdraw funds & stop 2 5%

Investing
Total 50 100%
 Figure No. 6.7 The Investor’s Action In Case Of Stock Market Drop

Wait to see if investment improves

Invest more funds Withdraw funds & stop investing
4%
26% 30%

40%

Analysis & Interpretation:

From the survey it was found that maximum respondents would wait to see if their investment
improves and start generating funds, 30% respondents would invest more funds, 25% respondents
would transfer funds into secure investment and 5% respondents would stop investing. It can be
stated that majority of investors would like to wait to see whether investment improves or they can
invest more funds.
 Statement 8. To Know The Decision Regarding Other Investment Policy
Table no. 6.8 The Other Investment Policy

Investment Decision No. of Respondents Percentage of Respondents

Yes 49 98%

No 1 2%

Total 50 100%

Figure 6.8 The Other Investment Policy

Yes No
2%

98%

Analysis & Interpretation:

From the survey it was found that 98% respondents have the other investment policy where as
2% respondents do not have the other investment policy.
 Statement 9. To Know the Satisfaction Level Of Respondents With Their Investment
Option
Table no. 6.9 Important Factors for Choosing The Investment Option

Particulars Highly Dissatisfie Neutral Satisfied Highly Summated

Score
Dissatisfied D Satisfied
(1) (2) (3) (4) (5)

Shares 10 6 14 30 40 384

Mutual funds 12 15 20 35 18 332

Bonds 20 18 35 19 8 277

Debentures 15 10 15 40 20 340

Derivatives 30 10 20 30 10 280

Range

Max. Score=100*5=500 (Highly Satisfied)

Avg. Score=100*3=300 (Neutral)
Min. Score=100*1=100 (Highly Dissatisfied)

Analysis & Interpretation:

Most of the respondents have given the highest summated score to shares. And the second most
important investment option is debentures which influenced the decision regarding investment.
Other important factor is mutual fund coverage which has the 332 summated score. Return on
derivatives get the 280 summated score.
 Statement 10. Important Factors That Was Considered While Investing
Table No. 6.10 Important Factors That Was Considered While Investing
Particulars Highly Dissatisfied Neutral Satisfied Highly Summated
Score
Dissatisfied Satisfied
(1) (2) (3) (4) (5)

Return on 0 0 4 30 66 462

investment
Tax benefits 0 0 18 48 34 416

Capital 0 0 20 40 40 420

appreciation
Maturity 5 5 40 30 20 355

period
Risk 5 10 20 35 30 375

Safety of 10 20 40 20 10 300

principal
Liquidity 15 15 20 30 20 325

Range:

Max. Score=100*5=500 (Highly Satisfied)

Avg. Score=100*3=300 (Neutral)
Min. Score=100*1=100 (Highly Dissatisfied)

Analysis & Interpretation:

Most of the respondents have given the highest summated score to Return on investment. And
the second most important factor is Capital appreciation which influenced the decision
regarding investment. Other important factor is Tax benefit which has the 416 summated score.
 Findings Of The Study

Following findings were generated from the study:-

1. Maximum investors are aware of all the investment options.

2. Investors do not invest in a single avenue. They prefer different avenues and maximum
investors prefer to invest in shares, mutual funds & debentures.
3. Maximum investors wants their investment grow at fast rate.

4. The investment decision of investors is influenced by their own decision and through
friends & relatives.
5. Different factors considered by investors while investing are return, risk, tax benefits,
capital appreciation and the most prominent factor is the return on any investment avenue.
6. Majority of investors invest 15-20% of their annual income.

7. Maximum investors invest on monthly basis.

8. The investors investing in different avenues are highly satisfied with the return generated
by their investment option.
9. Maximum investors have other investment policies.

10. The most important factor is Return which influenced the decision regarding investment.
 Conclusion

Indian Stock Markets is one of the oldest in Asia. Its history dates back to nearly 200 years ago.
The earliest records of security dealings in India are meager and obscure. The East India
Company was the dominant institution in those days and business in its loan securities used to be
transacted towards the close of the eighteenth century. The nature of investment differs from
individual to individual and is unique to each one because it depends on various parameters like
future financial goals, the present & the future income model, capacity to bear the risk, the present
requirements and lot more. As an investor progresses on his/her life stage and as his/her financial
goals change, so does the unique investor profile. Maximum investors are aware of all the
investment options. Investors do not invest in a single avenue. They prefer different avenues and
maximum investors prefer to invest in shares, mutual funds & debentures. The investment decision
of investors is influenced by their own decision and through friends & relatives. Majority of
investors invest 15-20% of their annual income.. The most important factor is Return which
influenced the decision regarding investment.
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