A study on people perception towards stock market

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT

OF THE AWARD FOR THE DEGREE OF

BACHELORS OF BUSINESS ADMINISTRATION

TO

GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY, DELHI

UNDER THE GUIDANCE OF

Faculty Guide: Dr Renu Sharma Submitted by: Chinmaya Mohanty

Enrollment No.: 03324401719

Nurturing Excellence

Institute of Innovation in Technology & Management,

New Delhi – 110058
Batch (2019-2022)

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 CERTIFICATE

I, Mr.Chinmaya Mohanty Roll No 03324401719 certify that the Project Report (BBA-311) entitled A study on

people perception towards stock market is done by me and it is an authentic work carried out by me at The

matter embodied in this project work has not been submitted earlier for the award of any degree or diploma to the

best of my knowledge and belief.

Signature of the Student

Date:

Certified that the Project Report (BBA-311) entitled “A study on people perception towards stock market”

done by Mr Chinmaya Mohanty , Roll No. 03324401719 is completed under my guidance.

Signature of the Guide:

Name of the Guide: Dr Renu Sharma

Designation: Professor
 ACKNOWLEDGEMENT

This project has been done under the sincere guidance of DR. RENU SHARMA

without which I would not have been able to come to the conclusion of this project. She has

guided me throughout the project from the beginning to the end.

Chinmaya Mohanty

03324401719

3
 CONTENTS

S.NO TOPIC PAGE NO.

1 Chapter-1: Introduction 05

2 Chapter-2: Research Methodology 11

3 Chapter-3: Data Presentation & Analysis 13

4 Chapter-4: Summary and Conclusions 35

5 References/Bibliography 36
 Chapter : 1

INTRODUCTION

Introduction to stock broker firm

A brokerage company’s main duty is to act as a middleman that connects buyers and sellers to facilitate a
transaction. Brokerage companies typically receive compensation by means of commissions or fees that
are charged once the transaction has successfully completed. Nowadays these might be paid by the
exchange or by the customer, or in some cases both.

Because many discount brokerages have instituted zero-commission trading, they make up for this loss of
revenue in other areas, including getting paid by the exchanges for larger quantities of order flow. For
example, when a trade order for a stock is executed, an investor pays a transaction fee for the brokerage
company's efforts to complete the trade.

The real estate industry also functions using a brokerage company format, as it is customary for real
estate brokers to collaborate, with each company representing one party of the transaction to make a sale.
In this case, both brokerage companies divide the commission.

A brokerage company may also be called a brokerage firm, or simply a brokerage.

KEY TAKEAWAYS

 A brokerage company primarily acts as a middleman to connect buyers and sellers to facilitate a
transaction.
 Brokerage companies typically receive one of two types of commission: a flat fee or a percentage
of the transaction amount.
 Brokerage companies come in several types, offering a range of products and services at a range of

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Understanding Brokerage Companies

In a perfect market, where everybody had full information and could act quickly and correctly on that
information, there would be no need for brokerage firms. In reality, however, there is less than perfect
information, opacity, and asymmetric knowledge. As a result, buyers don't always know who the sellers
are and which is offering the best price. Likewise, sellers are in the same position. Brokerage companies
exist to help their clients match the other side of a trade, bringing together buyers and sellers at the best
price possible for each, and extracting a commission for their services.
 Introduction to the company

About Sharekhan – Always the first

Founded in 2000 and a subsidiary of BNP Paribas since November 2016, Sharekhan was one of the first
brokers to offer online trading in India. With 20 lakh customers, 153 branches and more than 2400
business partners spread across over 541 locations, Sharekhan is one of the largest brokers in India.
Sharekhan offers a wide range of savings & investment solutions including equities, futures and options.
currency trading, portfolio management, research and mutual funds and investor education. On an
average, Sharekhan executes more than 400,000 trades daily

Sharekhan is the 5th largest retail brokerage full-service brokerage firm and the 8th largest stock broker
in India with 676631 customers. Sharekhan is one of the pioneers of online trading in India. It offers a
broad range of financial products and services including securities brokerage, mutual fund distribution,
loan against shares, ESOP financing, IPO financing and wealth management.
Sharekhan was founded by Mumbai-based entrepreneur Shripal Morakhia in 2000. Sharekhan pioneered
the online retail brokerage industry and leveraged on the first wave of digitization, when dematerialization
(demat) of securities came into effect and electronic trading was introduced in the stock exchanges.
In India, Sharekhan has 4800+ employees, and is present in over 575 cities through 153 branches, and
more than 2,500 business partners. The company has 1.4 million customer base and on an average,
executes more than 4 lakh trades per day.

Our diversified and integrated model

Serving our customers and the world in which we operate, we support transitions in society by
providing expertise and by contributing to financing the economy. We create value through our
diversified and integrated model, based on the diversification of risks and cooperation between our
 business lines. In the unprecedented context of the health crisis, our business model has enabled us to
support our customers. In all phases of this crisis, BNP Paribas has proven its ability to adapt and mobilise
quickly, while demonstrating its proximity to all of its customers.
In the area of corporate and institutional banking, the Group offers clients bespoke solutions to the
capital markets, securities services, financing, treasury and financial advisory. With a presence in 68
countries, BNP Paribas, in particular through One Bank, helps clients to grow internationally.

Our businesses

BNP Paribas organizes its businesses into three main fields of activity: Retail Banking (RB),
Investment & Protection Services (IPS) and Corporate Institutional Banking (CIB).

VISION

To be the best retail brokering Brand in the retail business of stock maket

MISSION

To educate and empower the individual investor to make better investment decisions

We are mobilising resources that have a positive impact.

At BNP Paribas, we want to be a long-term partner for our clients. We want to support their projects,
manage their investments and savings, and through insurance protect people, their goods and property.
Our employees aim to deliver services that have purpose and relevance for clients and the world around
them. They do this most clearly through their daily mission in the company but also through corporate
volunteering.
We are working with stakeholders and have adopted social and environmental goals aligned with global
standards such as the UN Sustainable Development Goals and those of the financial community such as
the Principles for Responsible Banking and the Principles for Responsible Investment.
We ensure that ethics and our commitment to economic, social, civic and environmental responsibility
are integrated into our business operations. This commitment is reflected in our organisation and the
procedures and policies governing our activities.
We innovate in order to be a leader in sustainable finance.

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BRACHES ALL OVER INDIA
 CHAPTER – 2

RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. Research methodology
consists of different steps that are generally adopted by a researcher to study the research problems
along with the logic behind them . It may be understand as a science studying how research is done
scientifically. It is necessary for research to know not only the research methods/techniques but also the
methodology.

TOPIC OF THE STUDY:

“TO STUDY THE ONLINE TRADING AND THE STOCK MARKET”

RESEARCH DATA SOURCE:

Research is based on primary data. Research has been done by primary data collection and primary has
been collected personally.

Primary Data

The data collected for the research is in the form of questionnaire and much from meeting individuals
and surveys.
In this project the approach used was questionnaire approach because the main objective was to study the
online trading and the stock market and to have an idea how they invest in the equity market.

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SAMPLING:

Sampling Procedure

The sample was selected randomly irrespective of them being investors or not availing services or not. It
was also collected through personal by formal and informal talks and filling up the questionnaire
prepared. The data has been analyzed by using statistical tools.

SAMPLE SIZE:

The sample size of my project is limited to 53 people.

SAMPLE DESIGN: Data has been presented in pie charts or bar chart.
In this project Descriptive Research design method is use
CHAPTER – 3

ANALYSIS & INTERPRETATION

QUESTIONS FOR THOSE WHO INVEST IN STOCK MARKET

Survey Response Analysis

TABLE.1. ACTIVE INVESTOR

The table explains about an active investor

Active Investor No Of Respondent % Of Respondent

Yes 23 43.4
No 30 56.6

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 INTERPRETATION: -

Source: Primary
data
INFERENCE:
From the table 1, pie chart depicted above,

Out of 53 respondents who answered the questionnaire , around 56.6 % people are not the active investor
they invest yearly, monthly. Around 43.4 % people are active investor, they invest daily, weekly
TABLE.2. TYPE OF INVESTMENT

The table explains about an investment type.

Type of Investment No Of Respondent % Of Respondent

Saving A/C 27 51.9
Mutual Funds 18 34.6
Fixed Deposits 17 32.7
Gold 14 26.9
Stock/Equity 9 17.3
Real Estate 5 9.6
PPF 6 11.5
Insurance 14 26.9

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 INTERPRETATION: -

Source:Primary data
INFERENCE:

From the table 2, pie chart depicted above,

Out of 53 respondents who answered the questionnaire , 51.9% of the people are investing in banking
sector as compare to stock market. Fixed Deposit, Insurance and Mutual funds also plays a major role in
investment.
TABLE.3. PURPOSE OF INVESTMENT

The table explains about an investment purpose.

Purpose of Investment No Of Respondent % Of Respondent

To meet the cost of inflation 4 7.7
To earn a good return on idle 28 53.8
Resources
To make a provision for an 17 32.7
uncertain future
To generate a specific sum of 23 44.2
money for a specific goal in

life

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 INTERPRETATION: -

Source:Primary data
INFERENCE:

From the table 3, pie chart depicted above,

Out of 53 respondents who answered the questionnaire , around 53.8% people doing investment to
earn good return on idle resources.
TABLE.4. HAVE YOU EVER INVESTED IN EQUITY MARKET?

The table explains about an investment in equity market.

Investment in equity Market No Of Respondent % Of Respondent

Yes 16 30.2
No 26 49.1
Planning to invest in future 11 20.8

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 INTERPRETATION: -

Source:Primary data
INFERENCE:

From the table 4, pie chart depicted above,

Out of 53 respondents who answered the questionnaire , People are unaware about the equity market that’s
why 30.2% people are investing in equity market from less than 1 year. Whereas 20.8% people are
interested in investing in equity markets in future.
TABLE.5. IF NOT, THEN WHY?

The table explains about the reasons for not investing.

Reasons for not Investing No Of Respondent % Of Respondent

Lack of interest 16 38.1
Lack of knowledge 30 71.4
Unavailability of such firms 4 9.5
to
provide information

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 INTERPRETATION: -

Source:Primary data
INFERENCE:
From the table 5, pie chart depicted above,

Out of 53 respondents who answered the questionnaire , 38.1% people agree that there is no promotional
or awareness is there about these firms, due to which 71.4% has no knowledge about these market.
TABLE.6. SECTORS FOR INVESTING

The table explains about the reasons for not investing.

Sectors No Of Respondent % Of Respondent

IT 11 32.4
Pharmacy 6 17.6
Telecom 9 26.5
Banking 24 70.6
Petroleum 7 20.6
Automobile 10 29.4
Entertainment 5 14.7
Oil and Gases 5 14.7
Engineering 5 14.7
Metals and Mining 7 20.6

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INTERPRETATION: -
Source:Primary data
INFERENCE:
From the table 6,pie chart depicted above,

Out of 53 respondents who answered the questionnaire , most of the people are invest in Banking Sector
it means they are not aware about any other options like Telecom, Oil & Gas, Hospitality Sectors
etc.
TABLE.7. SOURCES USED TO MAKE DECISIONS ON INVESTMENTS IN STOCK MARKET.

The table explains about sources used to make decision on investments in stock market..

Sources No Of Respondent % Of Respondent

Internet 20 41.7
TV 9 18.8
Press 3 6.3
Broker Advice 14 29.2
Others 2 4.2

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 INTERPRETATION: -

Source:Primary data
INFERENCE:
From the table 7, pie chart depicted above,

Out of 53respondents who answered the questionnaire , People make their decision on investments
TABLE.8. FACTORS TAKEN INTO ACCOUNT WHEN INVESTED IN STOCK MARKET.

The table explains about what factors taken into account when invested in stock market.

Sources No Of Respondent % Of Respondent

Dividend 4 11.9
Low Share price 7 16.7
Expectation of Share price 23 54.8
Increases
Taxation of dividends and 7 16.7
stock market gains

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INTERPRETATION: -

Source:Primary data
INFERENCE:

From the table 8, pie chart depicted above,

Out of 53 respondents who answered the questionnaire , 54.8% people has objective that they invest in
share market on the expectation that the share price will increase.
TABLE.9. SOURCES TO TRACK THE INVESTMENT.

The table explains about what factors sources to track the investment.

Sources No Of Respondent % Of Respondent

Internet 31 52.2
TV 8 47.8
Press 2
Broker Advice 5

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 INTERPRETATION: -

Source:Primary data
INFERENCE:

From the table 9, pie chart depicted above,

Out of 46 respondents who answered the questionnaire , 67.4% people track their investment
TABLE.10. HOW FREQUENT DO YOU INVEST?

The table explains about how frequent we are investing.

Sources No Of Respondent % Of Respondent

Daily 2 4.3
Weekly 8 17
Monthly 12 25.5
Yearly 31 66

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INTERPRETATION: -

Source:Primary data
INFERENCE:

From the table 10, pie chart depicted above,

Out of 53 respondents who answered the questionnaire , 66 % people invest in market yearly. It means
lack of awareness about stock market.
TABLE.11. HAVE YOU EVER INVESTED IN MUTUAL FUNDS?

The table explains about invested in mutual funds.

Sources No Of Respondent % Of Respondent

Yes 22 41.5
No 20 37.7
Planning to invest in future 11 20.8

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INTERPRETATION: -

Source:Primary data
INFERENCE:

From the table 11, pie chart depicted above,

Out of 53 respondents who answered the questionnaire , around 3 % people has invested in mutual funds.
And there are 20.8% people who are interested in investing in future
Findings

Main purposes of investments are returns & liquidity.

Investors take risk as well as returns into their mind while making the investment.

Businessmen are more interested in the stock market than the others.

Commodity market is less preferred by the investors.

People want to invest their money in the security market but they haven’t the proper knowledge.
 \

CHAPTER – 4

SUMMARY AND CONCLUSION

After completing the survey and analyzing the responses of the questionnaire. I came across the
following facts:

 There is huge scope for new investor to invest in Equity market, as it gives great returns, other than
the banks.
 Individuals don't know much about online trading however in coming future there is a huge scope.

 Awareness campaigns like giving idea about futures and options, derivatives, dividend policies will
create interest in online trading. And this helps organization for market positioning as well as mind
positioning.
 In order to increase online trading, customer ought to be given more and more services so preference
can be given to online trading over offline trading.
 Customer interest should be increased in mutual funds, so that they can invest in it. Even the
Government itself nowadays promoting mutual funds which are an opportunity for such firms like
SHAREKHAN.
 Customer should be aware about the derivative, commodities, currency because it is also an
investment option apart from equity market.

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 REFERENCES / BIBLOGRAPHY

WWW.MONEYCONTROL.COM
WWW.INVESTOPEDIA.COM
WWW.SEBI.GOV.IN
WWW.NSEINDIA.COM
WWW.WIKIPEDIA.COM
 \

COMPANY PROFILE QUESTIONNAIRE

QUESTIONNAIRE ON STOCK MARKET INVESTMENTS

NAME:
AGE:
EMAIL ID:
OCCUPATION:

1. Are you an active investor?

 YES

 NO

2. What kind of investment you have made so far?

 Saving A/C

 Fixed Deposits

 Mutual Funds

 Gold

37
  Equity/ Stock Market

 Real Estate

 PPF

 Insurance

3. What is the purpose of your

investment?
To meet the costof inflation
To earn a good return on idle resources
To make a provision for an uncertain future

To generate a specific sum of money for a specific goal in life

Others

4. Have you ever invested in equity market?

o Yes

o No

o Planning to invest in future

 \

If not, then why?

Lack of interest
Lack of knowledge
Unavailability of such firms to provide information
5. If yes, then in which sector do you invest
more? IT
Pharmacy
Telecom
Banking
Petroleum
Automobile
Entertainment
Oil and Gases
Engineering

□ Metals and Mining

6. What sources do you use to make decisions on investments in stock market?

o Internet

o TV

o Press

o Broker Advice

o Others

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 7. What are the objective factors that you think are in general taken into account when
invested in stock market

o Dividend

o Low Share price

o Expectation of Share price increase

o Returns of other substitutive investments

o Taxation of dividends and stock market gains

o Other

8. What sources do you use to track your investments?

o Internet

o TV

o Press

o Broker Advice

o Other
 41

9. Have you ever invested in Mutual Funds?

o Yes

o No

o Planning to invest in future

10. How frequent do you invest ?

 Daily

 Weekly

 Monthly

 Yearly

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