Summer Internship Project on

A SURVEY ON THE PREFERENCE OF SALARIED CLASS ON

VARIOUS INVESTMENTS OPTIONS AVAILABLE ARIHANT
CAPITAL MARKET LIMITED

In Partial Fulfillment of the requirements of the degree of MBA Year

2022

Guided By: Submitted By:

1. Corporate Guide: <Student Name>

Enroll No.
2. Faculty Guide: MBA
Batch: __________

AMITY GLOBAL BUSINESS SCHOOL, INDORE

DECLARATION

i
I declare

(a) That the work presented for assessment in this Summer Internship Report is my own, that it
has not previously been presented for another assessment and that my debts (for words, data,
arguments & ideas) have been appropriately acknowledged.

(b) That the work conforms to the guidelines for presentation and style set out in the relevant
documentation.

Date: (Student Name)

Batch:

CERTIFICATE

ii
I hereby certify that Ms/Mr. …………………………………………………….. student of
Master/Bachelor of Business Administration at Amity Global Business School Indore has
completed the Summer Internship Project on “A survey on the preference of salaried class
on various investments options available” under my guidance.

Faculty Guide Name

ACKNOWLEDGEMENT

iii
I take this great opportunity to express my profound sense and respect to all those people who

helped me throughout the duration of this project. This Project would have remained

incomplete without mentioning some of the names as a token of sincere thanks to those who

had contributed a lot towards completion of the project. It’s a great pleasure to present before

you this project on “A SURVEY ON THE PREFERENCE OF SALARIED CLASS ON

VARIOUS INVESTMENTS OPTIONS AVAILABLE ” which is a result of cooperation,

hard work and good wishes of many people.

I would like to thank my Amity Global Business School, Indore to give such an

opportunity to take up this project.

I’m deeply indebted to ……………………, who have guided, inspired and helped

me in the successful completion of this project. I owe a debt of gratitude to all of them, who were

so generous with their time and expertise.

Secondly, I would like thank ……….. my mentor whose guidelines and directions I was

able to meet my project objective and also the other professors of my institute who

were available when I needed them.

Last but not the least, I would like to thank all my friends, relatives and others with whose

help and support I was able to collect my sample size.

ABSTRACT

The Indian retail securities industry primarily consists of companies acting as agents to buy
and sell securities such as shares, shares and similar financial instruments on a commission,
transaction fee or brokerage basis.
iv
Arihant Capital Markets Limited is an ISO 9001:2008 certified company and one of the
leading financial services companies in India offer a wide range of products and services,
including securities and commodity brokerage, financial planning, depository services,
preferred client group services (PCG) and commercial banking services, to a large and diverse
group of clients, including individuals, businesses and financial institutions. increase.

The training, I used a descriptive survey design as a questionnaire method to study "investor
behavior in stock trading in various industries." Respondents from Arihant Capital Markets
Limited from Indore's entire stock exchange.

Research shows that most people invest in stock trading to get high returns and invest most of
their income in stock trading to hedge their risks . Here, most people trade stocks for
speculative purposes and invest for 1-3 months. Generally speaking , investors with longterm
investments of more than a year are definitely suitable for stock trading. Most people are
motivated by friends and the media suggesting they start trading stocks. Most people have
higher expectations for stock trading. After all, some people are happy with stock trading,
others are not.

Oil and gas industry is a preferred industry based on market trends, profitability, industry
conditions, and economic conditions, and is also a key factor in choosing an industry ,
allowing investors to assess P/E ratio, EPS, and dividends also rank as the most important key
factor Select companies under these selected industries.

TABLE OF CONTENTS

CONTENTS
Chapter 1 - Introduction
1.1. Overview of Industry as a whole
1.2. Profile of the Organization
1.3. Problems of the Organization
1.4. Competition Information

v
1.5. S.W.O.T Analysis of the Organization
Chapter 2 - Objective & Methodology
2.1. Significance
2.2. Managerial usefulness of the study
2.3. Objectives
2.4. Scope of the study
2.5. Methodology
Chapter 3 – Conceptual Discussion (Theoretical Backdrop & Literature Review)
Chapter 4 - Data Analysis
Chapter 5 - Findings and Recommendations
ANNEXURES
BIBLIOGRAPHY

vi
 CHAPTER 1
INTRODUCTION

i
CHAPTER 1
 INTRODUCTION

1.1. Industry overview

The Indian retail securities industry primarily consists of companies acting as agents to buy
and sell securities such as shares, shares and similar financial instruments on a commission,
transaction fee or brokerage basis.

An agent that charges a fee or commission for executing buy and sell orders submitted by an
investor. The firm acting as the client's agent charges the client a fee for its services. Roles
similar to stockbrokers include investment advisors, financial advisors, and possibly many
others. A stockbroker may or may not be an investment adviser.

Regulated professional broker who buys and sells stocks and other securities on behalf of
investors through market makers or simply agents .

Brokers who receive orders from clients typically communicate with company employees at
specific exchanges who execute the orders on the exchange and report trade details to the
broker. Clients typically keep their securities in a broker's account. Brokers charge their
clients a fee for placing trades and a fee for maintaining an account .

Key features of the brokerage industry include growth in electronic brokerage, lower
brokerage commissions, and growth in the derivatives market.

Stock trading services have several domestic and regional players who provide customers
with various services such as online trading, portfolio management systems and stock
brokerage.It helps investors decide where to invest as there are many investment vehicles
available to them.

1.2. PROFILE OF THE ORGANIZATION

Arihant Capital Markets Limited is an ISO 9001:2008 certified company and one of the
leading financial services companies in India. Company offer a wide range of products and
services, including securities and commodity brokerage, financial planning, depository
services, preferred client group services (PCG) and commercial banking services, to a large
and diverse group of clients, including individuals, businesses and financial institutions.
increase. Company are committed to providing the best service to our customers and uphold

1
the core value of always putting the interests of our customers first. These values are reflected
in our business principles that emphasize integrity, excellence, innovation and teamwork .

The company has a dedicated institutional team serving mutual fund companies, insurance
companies and virtually all banks operating in the capital markets sector.

Our Objectives is to bring wealth to our individual and corporate clients through sound
financial advice and sound investment strategies.

philosophy

• Integrity and transparency in all transactions.

• Company provide investment solutions based on high-quality, unbiased research.
• Personalized service for all investors, institutions and business partners.
• Success through customer growth.
• Making financial services more affordable, accessible and accessible to all.

what do company want

To be the preeminent and most trusted financial services provider.

The values company pursue can be summarized in five principles:

• upright
• customer commitment
• strive for profit
• excellence
• innovation our history

Arihant Capital Markets Limited was founded in 1994 by Mr. Ashok Kumar Jain, Chartered
Accountant. Arihant has followed a path of consistent growth, earning the support and trust of
its clients, investors, employees and colleagues to establish itself as one of the nation's
leading brokerage firms. Since our inception, company have prided ourselves on our
independence and continuous service.

2
Since its inception, Arihant has focused on creating wealth for its customers and has built a
reputation for quality service over time. Company have also established ourselves as an
investment advisor and are ready to provide our valued clients with a complete investment
management solution.

Association

Arihant Capital Markets Limited has grown rapidly since listing on the Bombay Stock
Exchange in 1993.

The Company is a member of the major Stock Exchanges of India.

• National Stock Exchange (NSE)

• Bombay Stock Exchange (BSE)

3
Company are deposit participants:

• National Securities Depository Limited (NSDL)

• Central Depository Service Limited (CDSL)

Company are a member of India's leading commodity and currency exchanges.

• National Commodity Exchange (NCDEX)

• Multi Commodity Exchange (MCX)
• MCX Stock Exchange (MCX-SX)
• NSE FX (the currency derivatives portion of NSE)

Company are an AMFI Accredited Mutual Fund Distributor, registered with SEBI for

Portfolio Management Services (PMS) and a Class I Commercial Banker. your

investment options

Build a diversified portfolio from a wide range of investment products and services.
Whatever your investment Objectives, company have a solution for you.

product

Stocks and derivatives

Get access to superior research tools, investment advice, fast trades, and
superior execution services. investment

trust

4
 Diversify your portfolio instantly. Access hundreds of mutual funds with
Arihant.

Product

Get the right advice and services to enhance your trading ability. Arihant
Merchandise - Versatility and Simplicity.

understand more

Initial public offering

Invest in the primary market and maximize your returns with easy and fast
service.

1.3. Organizational issues

stock market is one of the most important sources of funding for companies . This allows
companies to trade publicly or sell their shares in the company on the open market to raise
additional capital for expansion.

In fact, the stock market is often considered a major indicator of a country's economic
strength and development. For example, rising stock prices tend to correlate with increased
business investment and vice versa.

In this way, stock exchanges, which are investments in the stock market, also play an
important role. The exchange also acts as a clearing house for all trades. That is, it collects

5
and distributes shares and guarantees payment to sellers of securities. This eliminates the risk
of one buyer or seller defaulting on the other.

1.4. Tournament information

Many brokerage firms are moving toward consolidation, with smaller firms becoming
franchisees of larger brokerage firms or closing their businesses. The demand for online
trading is also increasing due to the increasing consumer preference for the internet compared
to the proximity to brokers.

New forms of transactions such as the T+2 payment system and digitization are
strengthening the retail intermediation market and attracting foreign companies to Indian
industries and services.

5Paisa.com - Online trading, real-time stock quotes, market research

• Anagram Capital - Stock Brokerage, Portfolio Management and Investment Banking

Services

• Angel Brokerage - Stock Brokerage and Wealth Management Services

• Advani Share Brokers - Stock Brokerage and Market Research Services

• Anand Ratty Securities - Portfolio Management, Corporate Finance, Equity and Fixed
Income Brokerage Services
• Brescon Group - Consulting and Brokerage Services

• CITIC Securities - Stock brokerage and commercial banking services

• CRN India - Stock market trends, trading tips, chat and more

• Churiwala Securities - Stock Trading, Quotes, Market Analysis

• DSP Merrill Lynch - Investment banking and brokerage services

• Dalmia Securities - Stock Brokerage and Depositary Services

• Stock Trading- stock trading, company news, market research

• Gandhi Securities - Stock Brokerage and Investment Services

6
• Gogia Capital Services - Stock Brokerage and Market Analysis

• Hasmukh Lalbhai - Stock Trading Service

• Idafa Investments - Stock Brokerage Services

• India Information Line Securities - Equity Brokerage, Portfolio Management,

Investment Banking Services

• Indian Market Access - Providing Stock Brokerage, Portfolio Management and

Investment Banking Services

• Investsmart India - Personal Finance Advisory and Online Brokerage Service

• Kisan Ratilal Choksey Shares - Stock Brokerage and Electronic Trading Service

• Kotak Securities - brokerage services and financial securities retailer

• Manubhai Mangaldas Securities - Stock Brokerage and Market Analysis

• Moneypore - Investment and brokerage services

• sporty oswal Securities - online trading, real-time BSE and NSE quotes
• Navia Markets - Stock Brokerage, IPO, Mutual Fund Services

• Parag Parikh - Broker and Portfolio Management

• Parsoli Corporation - Investment Management and Stock Trading Services

• Pratibhuti Viniyog - Stock Brokerage Service

• Prudential - Investment Management Services

• Quantum Securities - Provides brokerage and portfolio management services.

• Religare Enterprises Limited - Securities Brokerage Services and Diversified Financial

Services Group with Multiple International Locations

• Sivan Securities - Provides investment banking and stock brokerage related services,
mainly in South India.

7
• etc……

1.5. Organizational SWOT analysis

A SWOT analysis focuses on the internal and external environment, examining the strengths
and weaknesses of the internal environment and the opportunities and threats of the external
environment advantage serve
As a product, Arihant Capital Markets Limited is a very innovative product with a very low
cost.
customer relationship manager
The company has a team of account managers dedicated to serving its customers.
Distribution channel
Arihant Capital Markets Limited has nearly 150 branches.
product
The company's product line is a package of financial services offered to its customers.
weakness customer
satisfaction When it
comes to customer
satisfaction, Arihant
Capital Markets
Limited needed to
tighten its boots.
brand promotion
The company has efficient products, but most people interested in investing do not know the
company.
Competition from banks and niche markets
Most banks have confidence in their customers with their banking database due to their
excellent brand image.
chance
Analysis of the external environment may reveal new profit and growth opportunities.
expanding market
The stock market became safer after the NSE introduced a screen-based trading system,
attracting a large number of retail investors and increasing demand. This has improved
liquidity and increased trading volume. improve technology

8
 In a country like India, technology is constantly advancing and companies have the
opportunity to continuously improve their products over time, but small companies like local
brokers are more concerned about changing technology. It is difficult to go.
Your unmet needs
Too many competitors offer products to the market, but they are unable to fully satisfy their
customers.
education level
In terms of technology, the country's education level is improving year by year.
threaten
• new competitor
Many new competitors are looking to enter the market during this bullish move to get a taste
of the cherry.This creates tough competition for big players like Arihant Capital Markets
Limited. Born, there is little confusion in the client's mind about what the broker offers.Also,
many banking companies have entered the market with huge investments. Competitors such
as ICICI, kotak, hdfc and 5-paisa pose many threats to the company.
• technology based business
Online trading is completely based on fairly advanced technology. Technical solutions often
have to start from the internet front end (or the screen you see when you start trading). Then
you need to get into the "middle tier" of your risk management system. The system evaluates
data from bank and depository institution participants (DPs), calculates client risk in a timely
manner, and provides “go/no-go” recommendations for trading. Technology is a threat. As
long as it doesn't work, that's good, but the internet isn't that secure. Many cyber laws have
been formulated but are not yet enforced.
• switching cost
The cost of switching from one company to another is so low that companies can't even stop
and breathe, so they have to provide their customers with excellent service all the time.

9
 CHAPTER 2
OBJECTIVES AND
METHOD

10
 CHAPTER 2

OBJECTIVES AND METHOD

2.1.Significance

“Investing in Stock Trading by Industry” offers the following benefits:

 This research helps us understand where investors are spending more.

 to help you understand which factors are considered most important when choosing a
sector or company .

helps understand the motivations of investing in stock trading

2.2. Administrative usefulness of research

 This research helps managers understand how investors trade in stock trading.  The
survey helps managers understand how they respond to issues investors face when investing
in stock trading

2.3. Objectives

Each research is conducted for a specific purpose or to solve some problem. When doing
research, there are primary Objectives that help solve the main problem, and secondary
Objectives that help solve the peripheral problems. The primary and secondary objectives of
this study are:

 Objectives:

 To find the option that people invest in the most .

 Find out what motivates investors to invest in stock trading.
 Research people's general investment criteria.
 Examine the timeframes people invest in stock trading and understand the expected
rate of return.

11
 Explore people's interest in further investing in stock trading.
 Evaluate customer satisfaction in investing in stock trading.
 Different industries are categorized according to the investment behavior of investors
in stock trading.
 We identify various motivating factors that influence investors when investing in each
industry of their choice.
2.4. Research scope

Indian stock trading is currently a lucrative field for investors and investing in Indian stocks is
suitable not only for medium to long term investors but also for position traders, short term
swing traders and very short term day traders. I'm here.

The current position of the stock market is a temporary factor, not a fundamental factor, and
investors with good knowledge and a little patience can make a lot of money in this market.

• Investing in government securities, derivatives or direct stocks is up to the individual.

Investors who know little about the capital markets usually choose mutual funds. Mutual
funds have a higher risk tolerance and offer safer returns. corporate stock.
• Whether it's online or offline depends on the individual. The trade settlement time for
online stock trading is instant. Otherwise, you will have to perform offline stock trading. 
Building relationships is more important in this industry, so we need an experienced RM to
introduce our clients, and if the client trusts the RM, we will only do business through that
company.

2.5. Method

A study design is a general plan or model for conducting formal studies and investigations. A
specification of methods and procedures for obtaining the information needed to solve the
problem. This determines the sources of information and how the data is collected. Test
surveys and other forms that you use to collect data.

Descriptive research , also called statistical research . Describe the data and characteristics
of the population or phenomenon under study .

In short, descriptive research includes everything that can be calculated and researched.
12
 In this report, the study was conducted using this descriptive study design.

 Data collection method:

Data collection typically occurs early in an improvement project and is typically formalized
through a data collection plan that includes the following data collection methods:

The sources of data collection methods are:

 Primary data
 used data

 Primary data:
Raw data refers to data collected directly from direct experience. means data collected for the
first time by any researcher for any research purpose. There are many ways to collect raw
data, the main ones are:

 Here's how to collect raw data:

 questionnaire
 Interview method
 focus group interview
 Observation method
 case study method
 diary
I used a questionnaire method to collect primary data for the survey.

 Data used:

Secondary data is data that is collected by someone for a specific research purpose and used
by another person for another purpose.

We also used secondary data for our research, including company resources such as
brokers and websites.

 Sampling unit:
13
Here, a target population of actual and potential investors is identified and each sample is
given an equal chance to be selected. The research will be conducted through a survey across
the stock exchanges in Indore city.

 sample size:
should determine the full sample size as a 90% confidence level that is statically calculated
by a specific formula .

Data analysis tools:

 We used SPSS software (a statistical software package in the social sciences) for
analytical purposes.
 In this regard, we used mean, median, mode, frequency tables, crosstabulations,
graphical representations , and interpretation of each graph and graph.
 Microsoft Office is used for data entry formatting and data analysis.

Limitations:

No one is perfect, so creating the best or perfect report is impossible for everyone. Everyone
has some level of knowledge and is subject to some uncontrollable factors with which they
have to work. Therefore, this report may have some limitations due to my level of knowledge
or other factors.

According to me the following limitations may exist in my report.

 Respondents may be hesitant to provide information such as age and income.
Therefore, some data may be problematic due to the reluctance of respondents to
provide correct information.
 Due to time and cost constraints, the selected sample size ratio to the population is so
small that the selected sample may not be representative of the entire population.

 Even many respondents may give biased answers.

14
 CHAPTER 3

CONCEPTUAL DISCUSSION
(THEORETICAL BACKDROP
& LITERATURE REVIEW)

15
 LITERATURE REVIEW

Stock Market

A stock market is a market where investors can buy and sell stocks. The price of each buy
and sell transaction is determined by market forces, the supply and demand for a particular
stock. The stock market is an open market for stocks and derivatives of trading companies at
agreed prices. These are securities that are listed on stock exchanges and securities that are
only traded privately.The global stock market was estimated at about $36.6 trillion .

Stock trading

Stock exchange is an entity that provides stockbrokers and traders with a "trading" facility to
trade stocks and other securities.

A stock exchange is an organized marketplace where members of an organization,

whether a corporation or a corporation, come together to trade company shares or other
securities.

Stock exchanges also facilitate capital events, including the issuance and redemption of
securities and other financial instruments, and the payment of income and dividends.

Securities traded on stock exchanges include shares issued by companies, unit trusts ,
derivatives , collective investment products and bonds . To be able to trade a security on a
particular stock exchange, it must be listed there. Although there is usually at least one central
location for recordkeeping, modern markets are electronic networks , which have advantages
in terms of speed and transaction costs, so transactions are tied to such a physical location.
less. Trading on the exchange is restricted to members only. By definition, the initial offering
of stocks and bonds to investors takes place on the primary market and subsequent trading
takes place on the secondary market .

most important part of the stock market . As in all free markets , supply and demand in the
stock market are governed by various factors that affect stock prices.

In general, it is not mandatory to issue shares through the stock exchange itself, nor is it
necessary to subsequently trade the shares on the exchange. Such transactions are called over-

16
 the -counter or over-the-counter transactions . This is a common way of trading derivatives
and bonds . Stock exchanges are increasingly part of the global stock market.

 Major stock exchanges in the world

 20 Major Global Stock Exchanges: Market Capitalization as of August 2009 and

Total Sales YTD

where rather From the Indian Stock Exchange i.e.—

1. bombay stock exchange
2. national stock exchange

17
 List of stock exchanges in India
1. Bombay Stock Exchange (BSE)
2. National Stock Exchange (NSE)
3. Local Stock Exchange (21)
There are 21 other regional stock exchanges, Ahmedabad » Bangalore »
Bhubaneswar » Kolkata » Cochin » Coimbatore » Delhi » Guwahati »
Hyderabad » Jaipur » Ludhiana » Madhya Pradesh » Madras » Magad »
Mangalore » Meerut » OTC India » Pune » Saurashtra Kutch » Uttar
Pradesh » Baroda etc.

Bombay Stock Exchange (BSE)

The Bombay Stock Exchange is the oldest stock exchange in the country and Asia
with a rich history of over 133 years . In its early days, the BSE was established as a
'Association of Regional Stock and Securities Brokers'.

Founded in 1875, it was the first government-sanctioned stock exchange in the

country. In 1956, BSE was permanently recognized by the Government of India under the
Securities Contracts (Supervision) Act, 1956.

Today, the BSE is the world's largest exchange in terms of number of listed companies
and the fifth largest exchange in the world for processing trades through electronic trading
systems.
As of July 2009, the market capitalization of companies listed on the BSE was US$1.6
trillion.
covers more than 400 cities and towns nationwide and has about 4,937 listed
companies. As of July 31, 2009, there were over 7,745 trading scripts.

BSE Index SENSEX is India's first and most popular stock market benchmark index.
BSE SENSEX ( SENS itive ind EX ), also known as "BSE 30" , is a widely used market
index in India and Asia. Sensex tracks all over the world. It consists of 30 stocks representing
12 major industries. SENSEX is built on a "free flow" approach and is sensitive to market
trends and market realities.In addition to SENSEX, BSE offers 23 indices, including 13
industry indices.
18
 BSE provides an efficient and transparent marketplace for trading equities, bonds and
derivatives.

BSE is the first exchange in India and the second in the world to be ISO 9001:2000
certified. It is also the first exchange in China and the second in the world to obtain BSE
Online Trading System (BOLT) information security management system standard BS 77992-
2002 certification.
BSE is constantly innovating. In 2006, it became the first national stock exchange to
launch a website in Gujarati, Hindi and now Marathi, making it accessible to a wider range of
investors.

 BSE Online Trading (BOLT) :

BSE Online Trading (BOLT) facilitates online screen-based stock trading. BOLT is
currently running 25,000 trader workstations in 359 cities in India.

 BSE Vision
Bombay Stock Exchange's vision is -

“By establishing a global benchmark, we can become India’s premier stock exchange.”

Introduction to mad cow disease

 Address :- Phiroze Jeejeebhoy Towers, Dalal Street

Mumbai, India - 400001

 Phone : -91-22-227212334
 Website :- www.bseindia.com
 Trading Hours : -Monday to Friday, 9am to 3:30pm
 Securities : - Stocks, Derivatives, Debt
 Trading System : - Electronic
 MD & CEO :- Mr. Madhu Kannan

history of mad cow disease

19
 The Bombay Stock Exchange is known as the oldest exchange in Asia. It began in the
1850s when stockbrokers gathered under a banyan tree in front of Bombay City Hall. The
location of these meetings has changed several times as the number of brokers continues to
grow. The group eventually moved to Dalal Street in 1874 and in 1875 became an official
organization known as the "Association of Local Stock and Securities Brokers". In 1956, BSE
became the first stock exchange accredited by the Government of India under the Securities
and Contracts Regulation Act.

The Bombay Stock Exchange developed the BSE Sensex in 1986 to provide the BSE
with a way to measure the overall performance of the exchange. In 2000, BSE opened a
derivatives market using the index to trade Sensex futures contracts. In 2001 and 2002, BSE's
trading platform expanded with the development of Sensex options and equity derivatives.

Historically an open-floor exchange, the Bombay Stock Exchange switched to an

electronic trading system in 1995. The exchange completed the migration in just 50 days.

Mad Cow Index:

 Perceptual
 BSE 100 (this covers banks)
 BSE 200 (including capital goods)
 BSE 500 (including consumer goods)
 BSE Mid Cap Index
 BSE Small Cap Index

BSE Mid Cap Index covers the FMCG sector, while the BSE Small Cap Index
covers IT, Metals, Oil & Gas, Power Sectors, PSU and more. The BSE publishes data on
price-to-earnings ratios, price-to-earnings ratios and daily dividend yield percentages for all
major indices.

All BSE index values are updated every 15 seconds during market hours and are
displayed through the BOLT system, the BSE website and newswires.

All BSE indices are regularly reviewed by the BSE Index Committee. This committee
is composed of prominent independent financial experts and develops broad policy guidelines
for the development and maintenance of all BSE indices. The BSE Index Unit is responsible

20
for the day-to-day maintenance of all indexes and conducts research on the development of
new indexes.

Awards won by BSE

CSR Awards for Initiatives .

ICAI 2006-07 Financial Reporting Excellence Award

Human Resource Management Awards recognize excellence in HR through Workplace

Talent Management, Workplace Wellness and Technology.

National Stock Exchange (NSE)

of India Limited ( NSE ) is a Mumbai-based stock exchange. It is India's largest stock

exchange in terms of daily trading volume and number of trades in equities and derivatives.
market capitalization of approximately Rs 4,701,923 thousand (as of 7 August 2009), NSE
is expected to become India's largest stock exchange by the end of 2009. It is the stock
exchange of India and is responsible for the bulk of stock trading between them.
NSE is jointly owned by a group of major Indian financial institutions, banks,
insurance companies and other financial intermediaries, but its ownership and management
operate as a separate entity.
At least two foreign investors, NYSE Euro next and Goldman Sachs, hold stakes in
NSE. As of 2006 [update], there are 2799 NSE VSAT terminals covering over 1500 cities in India .
In October 2007, the market value of listed companies' shares on SGX was US$1.46
trillion , making it the second largest stock exchange in South Asia.
NSE is the world's third largest stock exchange in terms of number of shares
traded. With a growth rate of 16.6% , it is the second fastest growing stock exchange in the
world.

 Original:

National Stock Exchange , operated by a major financial institution at the request

of the Government of India, was incorporated as a tax-paying company in November 1992 .

In April 1956, it was admitted as a stock exchange under the Securities Contracts
(Supervision) Act 1956.

In June 1994, it started operations in the Wholesale Debt Market (WDM) division.

21
 Our Capital Markets (Equity) Division began operations in November 1994 and
our Derivatives Division began operations in June 2000 .

 market:

NSE currently has the following major sectors of the capital market:

• fair
• futures and options
• retail debt market
• Wholesale bond market
• currency futures

NSE becomes the first stock exchange to be approved for SEBI-RBI Committee
recommended interest rate futures trading, on August 31, 2009, futures based on quarterly
maturity 7% 10 year GOI Notes (NOTIONAL) We have started a contract.

 time:

The normal trading hours of the NSE are from 9:00 am India time to 3:30 pm India time,
excluding Saturdays, Sundays and legal holidays announced in advance by the exchange (or
the Government of India).

The exchange is looking to partner with BSE (Bombay Stock Exchange Limited) to change
the hours from 9am to 5pm Indian time.

However, on December 17, 2009, following strong protests from brokers, the
exchange decided to postpone the change of trading hours to January 4, 2010.

NSE New Market will be from 04 January 2010 to 9:00 am to 3:30 pm Indian time
.

NSE Group:

 National Securities Clearing Limited (NSCCL)

 National Securities Depository Limited (NSDL)  India Index Services and
Products Limited (IISL)  NSE.IT Co., Ltd.
 Dot International Co., Ltd.

History of NSE

22
 India's capital market reforms and the establishment of the Securities and Exchange Board
of India (SEBI) accelerated the establishment of the second Indian Stock Exchange, the
National Stock Exchange (NSE), in 1992. India's largest stock exchange.

Three sections of the NSE trading platform were established in succession. The Wholesale
Debt Market (WDM) began operations in June 1994 and the Capital Markets (CM) segment
began operations in late 1994. Finally, the futures and options segment began operations in
2000. Today, NSE ranks 14th among 40 global futures exchanges.

In 1996, the National Stock Exchange of India launched the S&P CNX Nifty and
CNX Primary Indices, comprising the 100 most liquid stocks in India. CNX Nifty is a
diversified index of 50 stocks in 25 different economic sectors. These indices are owned and
managed by India Index Services and Products Limited (IISL), which has a consulting and
licensing agreement with Standard & Poor's.

In 1998, the National Stock Exchange of India launched its website and in 2000
became the first exchange in India to launch stock trading over the Internet. NSE has also
received numerous awards, including the Computer Society of India's 'Best Use of IT Award'
(1996 and 1997) and CHIP Magazine's 'CHIP Web Award' (1999), and has been recognized as
a leader in the Indian financial market. demonstrating leadership in

NSE index

NSE also established an index services company called India Index Services & Products
Limited (IISL) and launched a number of stock indices including:

 S&P CNX Nifty (S&P CRISIL NSE Index)  CNX Nifty Jr.
 CNX 100 (= S&P CNX Nifty + CNX Nifty Junior )
 S&P CNX 500 (= CNX 100 + 72 400 industry leading players)
 CNX Midcap (launched 18 July 2005, successor to CNX Midcap 200 )

Mission of NSE

NSE's mission is to set the agenda for change in the Indian securities market. The
main purposes of establishing an NSE are:

• Building national stocks, bonds and hybrid trading instruments,

23
 • Ensuring equal access to investors across the country through appropriate
communication networks,
• Provide investors with a fair, efficient and transparent securities market using
electronic trading systems,
• Shortening the settlement cycle and enabling the book settlement system  Comply
with current international securities market standards.

The standards set by the NSE regarding market practice and technology have become
industry benchmarks and are emulated by other market participants. NSE is more than just a
market facilitator. It is this force that will lead the industry to new horizons and greater
opportunities.

Theoretical aspects of the subject

 What is investment?
" Money earned, part of it is spent, the rest is kept for the future spend.
Put your savings to good use instead of letting them go unnoticed To be
rewarded in the future. " It's called investment.

 why invest?
You should invest in:

 Earn rewards for idle resources

 Generate a specific amount of money for a specific Objectives in life
 prepare for an uncertain future

the cost of inflation . Inflation is the rate at which the cost of living increases. Living
expenses are expenses for purchasing goods and services necessary for life.

 Investor:

 investor is any party that makes an investment .

 products that individuals who invest money in have financial expectations return .
 is used to represent a specific class of personal and corporate securities that regularly
purchase shares or debt in exchange for financial gains in exchange for funding an
expanding company .

24
 Stock trading and industry information 
What is stock trading?
"A market in which investors buy and sell securities that provide ownership of the
stock of a company."

A market in which shares are issued and traded through an exchange or over-
thecounter market. Also known as the stock market, it is one of the most important areas of
the market economy and allows companies to acquire capital and investor ownership of the
company with the potential to realize profits based on future performance. It's for

A stock exchange or stock market is a system for trading company shares. The stock
market offers an opportunity for investors to participate in a company's success by increasing
its share price. However, stock trading typically carries more risk than the bond market as the
opportunities increase .

Indian Stock Trading

The Indian Stock Exchange is more commonly known as the Indian Stock Market.
Indian stock exchange is third largest In Asia, it is second only to China and Hong
Kong.
According to the latest ADB report, the company has a market capitalization of
around $600 billion. As of March 2009, it has a market capitalization of approximately
US$598.3 billion (Rs. 30.13 billion) , one-tenth of the total Asian region valuation. The
market started slowly in early 2007 and continued through the first quarter of 2009.

 Stock trading in India depends on three factors -

 Stock investment from all over the world
 Company housing performance
 monsoon

Stock trading is also affected by trade integration policies. Since 1995, the country has made
progress in both foreign institutional investment (FII) and trade integration . This is a

25
 very attractive profit area for medium- to long-term investors, short-term swing and position
traders, and day traders.

22 stock exchanges in the Indian market . Large companies participated in BSE and NSE.
SMEs are listed on OTCEI (Over the Counter Exchange of India). The functioning of
Indian stock exchanges is supervised by SEBI (Securities and Exchange Board of India).

Indian stock exchanges were neither organized nor developed before

independence. After becoming independent, he oversees new issues. Issuance timing,
issuance costs, pricing and interest rates are strictly controlled by the Capital Issuance
Director (CII).

In the 1950s , speculation got out of hand and the market became known as the
"Satta Bazaar". Speculators have targeted companies such as Tata Steel, Kohinoor Mills,
Century Textiles, Bombay Dying and National Rayon. The Securities Contracts (Regulation)
Act, 1956 was enacted by the Government of India. Financial institutions and state-owned
financial companies are developed through established networks.

NSE (National Stock Exchange of India) established in 1994 and OTCEI (Overthe-
Counter Exchange of India ) established in 1992, brought national competition to BSE. In
1995-1996, the Securities Contracts (Supervision) Act 1956 was amended to introduce
options trading. National Securities Clearing Corporation (NSCC) was established in April
1995 and National Securities Depository Limited (NSDL) in November 1996 for
securitization transactions, clearing and settlement.

!!!!.....Stock Trading Climbs the Wall of Worries.....!!!!

Sensex's compounded annual return over the last 27 years is about 18.62%, despite the
uncertainty...!!!!

 1 War (with Pakistan – Kargil 1999).

 Growing terrorism and threats to internal security (naxalite problems in Punjab,
Johnson & Johnson, Assam, Bihar, and other parts of India).
 2 Major financial scandals and some minor scandals (Harshad Mehta, Ketan
Pareikh, CR Bhansali, Sanjay Agarwal, etc.).
 Two prime ministers assassinated (Indira Gandhi and Rajiv Gandhi).
 A number of communal disturbances (Ayodhya, Godra - they keep happening with
complete consistency).

26
  More than 11 different governments have read through various manifestos and put
them all under a common banner called the Common Minimum Plan.
 3-4 more intense monsoons. Year after year the market speculates about how the
monsoons will hit the coast of Kerala, but that no longer matters. Moreover, as
irrigation systems increase and develop, the dependence on monsoons will further
decline.
 A gold mortgage to weather the foreign exchange crisis (the Indian government
pledged gold to the Bank of England in 1991).
 A coalition government has ruled for most of the past 25 years.
 Many natural disasters and disasters

As a result , stock prices are rising despite market uncertainty, and as a result, the
stock market is said to be climbing a wall of uncertainty. These concerns may include
political or economic risks, among others.

Introduction of each department

A. Sector meaning:

"There are many companies and securities that manufacture and service the

same products designated by specific names called industries and sectors." industry

classifications called different categories or sectors .

This report examines five sectors :

• oil and gas industry

1.
• banking
2.
• Information technology
3. industry

• Infrastructure
Fou department 27
r.
 .

Department

agricultural input sector Information technology industry

agricultural sector insurance

Automotive parts department Infrastructure department

automotive industry mining

aviation industry media and entertainment industry

banking clinical department

cement industry oil and gas industry

chemical industry painting department

Tobacco department Paper industry

Construction industry pharmaceutical industry

Consumer durables sector petrochemistry

Transportation and Logistics Service Power sector

Division

28
 Bicycle Products Division real estate business

Engineering department retail

financial institution sector sugar industry

food department Service industry

FMCG sector Shipping industry

fertilizer industry steel industry

clothing industry telecommunications sector

Healthcare sector textile industry

Department list:

Selected division introduction

1. Oil and gas sector:

In recent years, the oil and gas industry has been characterized by increased
consumption of petroleum products, decreased crude oil production, and declining reserves.
India remains one of the least explored countries in the world and has the lowest well density
in the world. India is the fourth largest oil consuming region in Asia, yet consumes only
0.1 tonnes per capita, the lowest in the region, making the outlook for the Indian oil industry
even more exciting.

The oil and gas industry has played a key role in driving India's rapid economic
growth. The oil and gas sector, which includes the transportation, refining, marketing of
petroleum products, and the gas industry, accounts for over 15% of GDP .

India's domestic demand for oil and gas is increasing. According to the Ministry of
Petroleum, the demand for oil and gas is expected to increase to 186.54 million tons in
2008-09.

29
 India has emerged as a global refining hub with capital costs 25% to 50% lower
than other Asian countries.

Already the fifth largest refining capacity country in the world , accounting for 3%
of global refining capacity, India's refining capacity could grow by 45% over the next five
years, or 65.3 to 242 tonnes per year (Mtpa) there is.

2. Banking:

Indian banking began in the last decades of the 18th century . India's oldest
surviving bank is the State Bank of India , a government-owned bank that dates back to June
1806 and is the country's largest commercial bank. Central banking was the
responsibility of the Reserve Bank of India, which formally assumed these
responsibilities in 1935 from the then Imperial Bank of India .

The Banking Industry examines every aspect of the Indian banking system. To engage
new players in the industry in the years to come, we discuss issues related to the birth of the
concept of national banking. Bankers of all banks, Reserve Bank of India (RBI), Indian
Bankers Association (IBA) and top 20 banks like IDBI, HSBC, ICICI, ABN AMRO.

As the country's economy enters a high-growth trajectory , consumption levels and

investments soar. Moreover, with the globalization of Indian companies and the increasing
investment of Indians in India, some Indian banks are pursuing global strategies,

observed that the Indian economy showed some resilience, registering a better-than-
expected growth of 7.9% in the second quarter of 2009-10 .

industry is growing faster than the real economy, with commercial bank assets rising
to 92.5% of GDP at the end of March 2007 . , according to a Boston Consulting Group (BCG)
report .

3. Information Technology Department:

Over the past decade, the information technology (IT) industry has become one of
the fastest growing industries in India. The major segments (96% of the total) contributing
significantly to the industry's exports include Software and Services (IT Services) and IT

30
Support Services (ITeS), or Business Services. India has established itself as a preferred
global sourcing hub for these segments and is expected to continue to grow.

now emerging as one of the popular places to outsource cost-effective software

solutions . India's contribution to software outsourcing is significant. There is no denying
that India is currently being called the most prosperous reality of software outsourcing .
There are several reasons for the popularity of offshore IT outsourcing services in India
today. The main reasons for choosing India as an offshore development partner for your
software outsourcing business are the availability of a large educated workforce and
worldclass quality products.

India's information technology (IT) industry has played a key role in putting
India on the world map. Thanks to the success of the IT industry, India is now a force to be
reckoned with. According to the National Association of Software and Service Companies
(NASSCOM), the premier body for software services in India, revenue from the
information technology sector increased from 1.2% of gross domestic product (GDP) in
1997-98 to increased to an estimated 5.8. %. Additionally, industry groups expect the
industry to grow between 4% and 7% in 2009-2010, returning to growth of 10% or more
next year.

Global IT growth in India is dominated by IT software and services such as custom

application development and maintenance (CADM), system integration, IT consulting,
application management, software testing, and web services.

$1 billion accounts for nearly 78% of total software and services revenues,
accounting for $59.6 billion.

, has become a force to be reckoned with as the existing IT infrastructure evolves in

terms of technology and penetration .

NASSCOM, the domestic IT market (including hardware) reached $24.3 billion in

2008-09, an increase of 5.3% compared to $23.1 billion in 2007-08 .

 investment:

31
  The Andhra Pradesh government expects the state's IT-related Special Economic Zone
and India's Software Technology Park (STPI) to receive approximately $3.27 billion
in investment over the next five years.
 Mahindra Satyam has partnered with defense and security company Saab to increase
its presence in India for the global defense and homeland security market. The
estimated transaction value is $400 million.
 San Francisco-based virtualization solutions provider VMware Inc plans to invest
$100 million in India by the end of 2010.

 By 2014, the total investment in India by EMC Corporation, the world's leading
information infrastructure solutions provider, is expected to reach US$2 billion.

India's information technology sector is one of the bright spots in the Indian economy,
showing rapid growth and prospects.

4. Infrastructure department:

Infrastructure is the basic physical and organizational structure required for the
operation of a society or business, or the services and facilities necessary for the functioning
of an economy. Generally, it refers to the technological structures that support society, such as
roads, water supply and sewerage, power grids, and communications.

, infrastructure expansion is accelerating to support economic growth of over 9%

. The six core infrastructure sectors, which together account for 26.68% weight in the
Index of Industrial Production (IIP), grew by 8.6% in 2006-07 and 6.2% in 2005-06.

Six core infrastructure sectors grew at a rate of 6.9% from April to September 2007,
continuing their rapid growth this fiscal year. In particular, electricity increased by 7.6%
from 6.7% in the same period last year. Other sectors that recorded major growth included
Refined Petroleum Products (9.8%), Cement (8.3%) and Finished (Carbon) Steel (6.6%).

From 2008 to 2009, it grew significantly at a rate of 5.3%. India has become a major
foreign investor and people are reaching out to Indians for investment in their country,
according to investment bank Goldman Sachs, said Roads, Transport and Highways
Minister Kamal Nath. Stated. The sector will require $1.7 trillion in investment over the
next decade. He added that such investments will come from the domestic market rather than
abroad.
32
 5. Automotive industry:

automotive industry is one of the fastest growing industries in the world. Over 2
million new vehicles are launched on Indian roads each year and the industry is set to
grow further.

The automobile industry crept into India in the 19th century. The Indian automotive
industry has come a long way since the introduction of the first automobile in 1897. Today,
India is the world's largest three-wheeler market and is expected to overtake China to
become the second largest auto market in the next few years.

Some Facts about the Indian Auto Industry:

• India has the 4th largest car market in the world

• India has the world's largest tricycle market
• India is the second largest producer of motorcycles in the world
• India ranks fifth in commercial vehicle production

The growth of India's middle class and economic growth over the past few years have
prompted global auto giants to enter the Indian market. Moreover, India offers highly
trained manpower at competitive costs, making India a sought after global
manufacturing hub. On the one hand, the attractiveness of the Indian market and the
stagnation of the automotive industry in markets such as Europe, US and Japan are creating
new capacity and capital flows to the Indian automotive industry.

Global auto giants such as Japanese auto giants Suzuki and Honda and South
Korean auto giant Hyundai are increasingly relying on operations in India to add weight to
their business, while figures in developed markets are It remains uncertain because of the
recession and slowdown.

To data released by the Association of Indian Automobile Manufacturers (SIAM)

, domestic passenger car sales in January 2010 increased by 32.28% to 145,905 from
110,300 in the same period last year.

's total vehicle sales increased by 44.94% from 768,698 in January 2009 to 1,114,157.

33
 According to a report by a global rating agency , India's automotive industry sales
could grow by 10-12% in 2010.

It has overtaken Brazil to become the second largest producer of small cars. Small
cars account for 80% of the domestic market (up from 75% last year) and exports are growing
rapidly. According to SIAM, exports of light duty vehicles increased by 53% between April
and September 2009 to 197,249 compared to 129,090 the previous year.

To make India a force to be reckoned with in the automotive industry, the

government launched the Automotive Mission Program (AMP) 2006-2016.

Its vision is to "become the world's leading destination for the design and
manufacturing of automobiles and auto parts, generating $145 billion in output, more
than 10% of GDP by 2016, and providing more jobs for 25 million people." to do.
According to AMP, the total turnover of the Indian automotive industry is estimated to reach
between $122 billion and $159 billion in 2016.

Moreover, by 2016, the automotive industry's contribution to the country's GDP

will double from the current 5% to 10-12%.

List of companies in the selected sector

Oil and gas industry:

 Indian Oil Corporation

 ONGC ( Oil and Gas Corporation of India )  Essa Oil Co., Ltd.
 Natural Gas Corporation of India
 indian oil limited
 gujarat gas
 indian oil
 Prohibited matter
 tata oil
 Natural Gas Project (India) Pvt Ltd
 Hindustan Petroleum Exploration Ltd.
34
 Indian LPG
 indian oil and gas
 etc…
Banking:

 State Bank of India

 ICICI Bank
 Indian Unit Trust (UTI)
 HDFC (Housing Development Finance Corporation)
 ABN Amuro
 HSBC
 IDBI Bank
 Union Bank of India
 central bank of india
 Baroda Bank
 etc…

Information Technology Department:

 infosys
 TCS Co., Ltd.
 Vipro
 microsoft
 L&T Information Technology Co., Ltd.
 lenovo
 hydrochloric acid
 Mahindra Satyam
 etc…

Infrastructure department:
 DLFMore
 Reliance Infrastructure
 HCC infrastructure
35
  Metas Infrastructure Co., Ltd.
 GMR infrastructure
 IBR infrastructure
 etc…

Automotive industry:
 hero honda
 ford
 Honda
 badger motors
 Tata Motors
 maruti suzuki
 TVS motor
 mihindra car
 yamaha motor
 etc…

Introduction to capital markets

concept:
The capital market is the market for funds with long or indefinite maturities. In other words,
it deals with long-term funds. Capital markets typically offer medium- and long-term
securities and funds with maturities of more than one year. Capital markets generate funds
from savers and transfer them to users. Usually it is done in common stocks, stocks, corporate
bonds and bonds, and government securities. They do this by turning financial assets into
productive physical assets.

Capital markets provide a market mechanism for those who have savings or need capital for
productive investment. Divert resources from wasted and unproductive channels into
productive investments.

Capital Market:

1875 when 22 enterprising brokers founded the Bombay Stock Exchange (BSE) under
a banyan tree. Over the past 133 years, the Indian stock market has grown into one of Asia's

36
most dynamic, modern and efficient stock markets. Today, the Indian market meets
international standards in terms of structure and operational efficiency.

The capital market is the market for securities ( bonds or stocks ) where
commercial enterprises ( companies ) and governments can raise long-term capital . Defined
as a market that provides funding for 1 year or more, as other markets have short-term
funding

 Market structure and size:

Through a sound risk management system and innovative online position monitoring
methods, the exchange company underwrites each member's counterparty risk and guarantees
settlement. It also guarantees the financial settlement of trades on the specified date and time,
regardless of whether the member provides the necessary funds and/or securities with the help
of the Settlement Guarantee Fund. Today, India has two domestic exchanges, the Bombay
Stock Exchange (BSE) and the National Stock Exchange (NSE). Each has a full electronic
trading platform with approximately 9,400 participating brokerages.

There are approximately 4,937 listed companies in over 400 municipalities

nationwide, and as of July 31, 2009, over 7,745 scripts are being traded. As of July 2009, the market
capitalization of companies listed on the BSE was US$1.6 trillion.

NSE has a market capitalization of approximately Rs 4,701,923 million (as of

August 7, 2009)

About 9,600 companies are listed on each exchange. Any market experiencing this
kind of growth has an equally large need for efficient payment procedures.

(NSDL) National Securities Depository Limited, in India, 99.9% of trades are

settled electronically in the T+2 rolling settlement environment. In addition, the transactions
are secured by NSE and BSE clearing companies by National Clearing Corporation of
India (NSCCL) and Bank of India Limited (BOISL) respectively. The clearing firm's
primary function is to calculate (a) what the counterparty owes and (b) what the counterparty
should receive on settlement date. Additionally, each exchange has a settlement guarantee
fund to cover unpredictable situations and a negligible 0.003% trade failure.

37
  Attractive Indian Capital Market Highlights:

There are two main reasons why Indian securities are becoming increasingly attractive to
international investors.

1. Relatively high returns and low correlation with global markets compared
to more developed global markets.
2. However, until the early 1990s, the only way for foreign investors to
enter the Indian capital market was through listed state funds.

Indian security market

brief history

“Capital markets are one of the most exciting areas of the financial system and make an
important contribution to economic development.”

The Asia Focus Fund was launched in London in 1986 by the Unit Trust of India
(UTI). The success of this move prompted the fund to follow suit with many others. Indian
companies are now also allowed to raise shares in international markets by issuing GDRs. In
2004, 498 foreign institutional investors held 1,325 subaccounts with a net investment of
approximately $15 billion. India's regulator, the Securities and Exchange Board of India
(SEBI), is more than just a regulator, it has a developmental role. Transparency,
competitiveness and equal opportunity for all market participants are the driving forces
behind all SEBI development and regulatory initiatives. The availability of derivative
products such as index futures, index options, single stock futures and single stock options
increases the overall attractiveness of this market for domestic and foreign investors. The
derivatives market has grown tremendously in just two years. Compared to the previous
financial year, the annual turnover increased by more than 300%. More evidence is needed to
show that India is willing to embrace change, and the availability of Internet trading and the
dual fungibility of American Depositary Receipts (ADRs) and Global Depositary Receipts
(GDRs) could prove India's It clearly shows the dynamism and dynamism of the stock
market.

 Meaning of capital market

38
 “Capital markets are markets in which the financial resources of corporations,
corporations, governments, semi-public institutions, the public sector, and other
organizations rise.”

Also

market for trading bonds or stock securities ."

The capital market is the market for securities ( bonds or stocks ) where commercial
enterprises ( companies ) and governments can raise long-term capital . It is defined as a
market that provides funding over a period of one year or longer, as short-term funding
occurs in other markets (eg, the exchange market) .

Capital markets include the stock market (equity securities) and the bond market (debt).
Capital markets can be categorized as follows:
1) primary market
2) secondary market

In the market , new stocks or bonds are sold to investors through a mechanism called
underwriting .

secondary market is the buying and selling of existing securities between investors or
traders , usually on a stock exchange , over the counter , or elsewhere .

Investors buy securities in the capital market to earn returns and earn profits from the
securities .

Capital Market Chart

39
 CAPITAL MARKET

Industrial Government Long term

Security Securities Loans

Market Market Market

Primary Market

Secondary Market

Types of Capital/Securities Markets:

The stock market can be divided into three parts:

A. Industrial securities market

B. government securities market
C. long term loan market

A. Industrial Security Market:

The industrial securities market consists of two complementary parts: the initial issue
market and the secondary market.

40
 This is the industrial securities market.

(i) stock or common stock or common stock.

(ii) preferred stock (iii) bond or bond.

The corporate sector is funded through the three securities mentioned above. This is a
tangible or tangible asset of market functioning.

1. capital:

Shares represent a proportional ownership interest in a company. Investors who own

shares in a company enjoy ownership rights, such as voting for directors on the board of
directors and sharing in the profits of the company.

Investors who own shares in a company are called shareholders. Common stock with
no guaranteed dividend. Stocks give the best returns when profits are high.

The Indian Stock Exchange is more commonly known as the Indian Stock Market.
Indian stock exchange is third largest In Asia, it is second only to China and
Hong Kong.

2. preference share:

“Shares that guarantee priority payment of dividends to the holder, but the
holder does not have voting rights.”

Preferred shareholders have no voting rights. They usually bear a fixed dividend paid
if the company declares a dividend.

Preferred shares have different characteristics, so they can be used in the following ways:
 Cumulative and non-cumulative preferred stock

 Redeemable and non-redeemable preferred stock

 Convertible and non-convertible preferred stock

 Preferred stock with the above characteristics.

3. Bonds:

41
 “A bond is a debt instrument that allows the issuer to owe an obligation to the
holder and is obligated to pay interest ( coupon) and/or principal at a later date, called
maturity , according to the terms of the bond .”

A bond is a formal contract for regular repayment of borrowed money.

Many financial institutions such as IDBI, ICICI and IFCI finance their operations by
issuing bonds. There are many types of this too.

These include income bonds, tax exempt bonds, capital gains bonds, infrastructure
bonds, retirement bonds, etc.

Companies raising capital on the primary market:

1) Primary Market (New Issue Market):

Primary market is the market where the security is first listed on the market. The New
Issues Market deals with new securities, that is, securities that were previously unavailable
but made available to the general public for the first time.

The primary market is the market for newly issued or new financial bonds.
Hence it is called the new issue market.

In the primary market, borrowers exchange new financial securities for long-term
funds. Good for capital formation.

Companies raising capital on the primary market:

(i) public issue

(ii) issue correctly
(iii) Primary Placement/Subscription
public issues The most common method of raising capital is the sale of securities to the
public by a new company, known as a public offering.
Stock is when an existing company first offers it. Preemptively guaranteeing existing
shareholders while a company wishes to raise additional capital is called capital and is known
as a rights issue.
private placement envisions the private sale of securities to a small group of investors.

2) Secondary market:

42
 The secondary market is the market for securities that are already in circulation and listed
on a stock exchange. The main advantage of the secondary market is that investors can buy
and sell securities continuously without the company's involvement. The market consists of
all stock exchanges approved by the Government of India. Stock exchanges in India are
regulated by the Securities Contracts (Supervision) Act, 1956. B. Government securities
market:

The Government Securities Market (G-secs) is the largest segment of the Indian
longterm bond market, accounting for nearly two-thirds of primary market issuance and more
than four-fifths of secondary market trading volume.

Also known as Phnom Penh Stock Market. This is a market for trading government
securities. India has several types of government securities, short term and long term.
Longterm securities are traded on this market and short-term securities are traded on the
short-term money market. Securities issued by semi-governmental entities such as central
governments, state governments, municipal corporations, and port trusts. Improvement
Trusts, State Power Boards, all Indian and state level financial institutions and public sector
companies are traded in this market.

 Participants in the G-secs market:

Banks are the largest owners of G-sec. About one-third of banks' net demand and time
liabilities come primarily to meet statutory liquidity requirements, partly for investment
purposes and partly from the government securities market. G-sec's other investors include
mutual funds, junior and satellite traders, and trusts.

Government bonds are issued in RS denominated. 100. Interest is paid semi-annually

and is tax exempt. Brokers actually have a very limited role in marketing these securities and
hold the majority of these securities to meet SLR requirements, making them a major player
in the 'commercial banking' market. is a great player.

The secondary market for these securities is very narrow as most institutional
investors tend to hold onto these securities until maturity.

Government bonds come in various forms. These are usually:

(i) Registered share certificate

43
 (ii) Promissory note, delinquency note, debt note (iii)
Discounted career bond.

Government bonds are sold through the RBI's Office of Public Debt and Treasury bills
are sold through auctions.

Government securities provide an excellent way to raise cheap funds for the public
treasury, and interest in these securities influences prices and yields in this market. Therefore, this
market also plays an important role in currency control. C. Long term loan market:

Development and
commercial banks play an important role in this market by providing long-term loans to
corporate clients.

The long term loan market can be further divided into:

(i) term loan market

(ii) mortgage market
(iii) financial guarantee market

 Term loan market:

Term Loan : A loan of a specific amount with a specific repayment schedule and
variable interest rate offered by a bank. Term loans typically mature in 1 to 10 years.

In India, the government has established a number of industrial finance institutions at

the national and regional levels to provide long and medium term loans directly and indirectly
to corporate clients. These development banks dominate industrial finance in India.

Institutions such as IDBI, IFCI, ICICI, and other state-owned financial companies fall
into this category. These institutions cater to a growing and diversified range of long-term
loans. It also helps identify investment opportunities, encourage new entrepreneurs, and
support modern work.

 Mortgage Market:

Mortgage market refers to those centers that primarily provide mortgages to individual
customers. A mortgage is a loan secured by real estate, such as real estate. A proper
transfer of interest on a particular property for the purpose of obtaining a loan is called a
mortgage. These mortgages may be fair or legal. Similarly, it may be the first mortgage of a
44
property title deed as a mortgage, in the case of a statutory mortgage, the ownership of the
property is legally transferred from the borrower to the lender. Statutory mortgages are less
risky.

Similarly, on the first claim, the mortgage gives the mortgagee an interest in a particular
property as collateral. If a proper issue is once mortgaged to another creditor, it becomes a
second mortgage when it is subsequently mortgaged to someone else. In this case, the
mortgagee may also transfer ownership of the mortgaged property to another person. It's
called a subprime loan.

The mortgage market can have a primary market and a secondary market. The primary
market includes the original extension of credit, and the secondary market sells and resells
existing mortgages at current prices.

Mortgages are the most common in India. The Housing and Urban Development
Corporation and LIC play a leading role in financing housing projects. In addition, land
development banks provide inexpensive mortgage loans for land development, equipment
purchases, and more. These development banks raise funds by selling bonds that are
considered fiduciary securities.

 Financial Guarantee Market:

“A financial guarantee is an irrevocable indemnified bond that guarantees the timely

payment of interest and principal to the buyer ( holder) of a debt instrument on maturity .”

The Guaranteed Market is a financial center backed by big names in the financial
world. A warranty is a contract that exempts a third party from liability in the event of its
nonperformance. From a creditor's perspective, a security is a security. If the borrower fails to
repay the loan, the liability falls on the guarantor's shoulders. Therefore, the guarantor must
be known to the borrower and lender and able to fulfill their responsibilities.

There are many types of guarantees, but the common forms are:

(i) Performance guarantee

(ii) financial guarantee
Performance guarantees include payments such as security deposits, retainages,
prepayments, and pending contracts. Financial guarantees, on the other hand, include only
financial contracts.

45
 India has a well organized financial guarantee market. Financial guarantees in India
include:

(i) import/export deferred payment

(ii) Overseas medium- to long-term loans
(iii) Borrowing from banks and other financial institutions
These guarantees are mainly provided by commercial banks, development banks,
central and state governments, and professional guarantee agencies such as ECGC (Export
Credit Guarantee Corporation) and DICGO (Deposit Insurance and Credit Guarantee
Corporation). This secure financial service is available for individuals and corporate
customers. This guarantee service is absolutely necessary for the smooth functioning of the
financial system.

 capital market tools

There are many capital market instruments used for market trading, such as stocks,
bonds, bonds, treasury bills, foreign exchange and term deposits. These are used by investors
to profit from their respective markets. These are all called capital market vehicles because
they are responsible for raising funds for corporations, corporations and sometimes national
governments.

This market is also known as the securities market because long-term funds are raised
through the trading of bonds and stocks. These activities may be conducted by companies or
governments.

Stocks and bonds are two basic capital market instruments used in primary and
secondary markets.

There are different types of capital market instruments… and so on….

 hook up

 hook up

 preference share

46
  stock

 government securities

 Bonds:
securities issued in exchange for medium- to long-term fund management . A
bond is proof of a debt owed by a borrower to a lender . ”

, regulated according to the SEBI Guidelines of 11 June 1992 .

The types of bonds are:

 convertible bond

 non-convertible bonds
 Zero coupon convertible bonds

 Zero Coupon Fully Convertible Bonds

 Fully convertible bond with interest  Certain convertible bonds.

 Bonds:
“A bond is a debt instrument that allows the issuer to owe an obligation to the
holder and is obligated to pay interest ( coupon) and/or principal at a later date, called
maturity , according to the terms of the bond .”

A bond is a formal contract for regular repayment of borrowed money.

estimated to be close to $47 trillion . The US bond market is the largest in the world.
The US bond market has over $25 trillion in outstanding debt.

India's sectoral market size is US$239.2 billion , accounting for 34.5% of GDP in
2004-05.

Indian development finance institutions such as IDBI, ICICI and IFCI finance their
operations through bond issuance. There are many types of this too. These include:

 yield bond
47
  tax exempt bond

 capital gain bond

 heavily discounted bonds

 Infrabond

 Pension etc...

 preference share:
“Shares that guarantee priority payment of dividends to the holder, but the
holder does not have voting rights.”

Preferred shareholders have no voting rights. They usually bear a fixed dividend paid
if the company declares a dividend.

Preferred shares have different characteristics, so they can be used in the following ways:

 Cumulative and non-cumulative preferred stock

 Redeemable and non-redeemable preferred stock

 Convertible and non-convertible preferred stock

 Preferred stock with the above characteristics.

 Capital:
Shares represent a proportional ownership interest in a company. Investors who own
shares in a company enjoy ownership rights, such as voting for directors on the board of
directors and sharing in the profits of the company.

Investors who own shares in a company are called shareholders. Common stock with
no guaranteed dividend. Stocks give the best returns when profits are high.

As a shareholder, the extent of your ownership (shares) in the company depends on

the number of shares you own relative to the total number of shares available.

for example, If you buy 1,000 shares of a company with 100,000 shares
48
outstanding, you own 1% of that company.

Shareholders or beneficiaries can relinquish ownership by selling their shares.

Investors can become shareholders/beneficiaries of a company by purchasing shares in the
company.

With the consent of the board of directors and a majority of the shareholders, the
shareholders have the right to distribute the profits of the company in the form of "bonus
shares". If the company is dissolved for any reason, the shareholders can receive funds from
the remaining funds after all other debts have been paid off.

 Government securities:
Government Securities (G-secs) are sovereign securities issued by the Reserve Bank

of India on behalf of the Government of India. The term government securities includes:

 central government securities

 state government securities
 government bond

Securities are issued periodically by central or state governments to attract loans from
the public.

There are two types of government securities.

I. term securities
II. government bond

Securities: Fixed-term securities have a maturity of one year or more.

Treasury bills: Treasury bills have maturity dates of less than one year or less than
one year.

RBI's Public Debt Office (PDO) performs all functions related to issuance control,
trade settlement, interest distribution and redemption. Government securities are only
available to corporate and institutional investors, but individual investors can also subscribe
to these securities.
49
 Investors should contact RBI to receive government securities in physical form.
Investors can invest in ledger format in banks and institutions such as NSDL, SHCIL and
NSCCL. The ease with which NSDL can purchase and hold government securities is
facilitated by their accessibility, allowing depository accounts opened for other securities to
be used to hold government securities.

Importance of capital markets

Capital markets are important as they play a key role in driving the country's rapid
industrial development. Thanks to the services provided by the capital markets, these savings
are used for profitable investments in economic development. Mobilizing the investable
surplus and providing professional services to investors and firms are two important activities
performed by capital markets.

Capital markets are important because: Investors can invest according to changing
expectations.

 want to save money and those who need it , allowing them to invest with a safe and
reasonable return.
 It provides capital to businesses that can use it profitably and productively, increasing
gross national income.
 By transforming financial assets into physical assets, we provide appropriate capital
flows and achieve rational resource allocation. Capital markets therefore facilitate
capital formation.
 It encourages savings and promotes capital formation by providing an appropriate
interest rate as the price of capital.
 It facilitates the buying and selling of securities at the listed price by providing
investors with a certain amount of liquidity.
 Securities issued in the capital markets are transferable in nature.
 Changes in business conditions in the economy are instantly reflected in the capital
markets. Capital markets can distinguish between booms and busts. Governments can
therefore adopt appropriate supervisory and fiscal policies.
 Capital markets offer securities of various types, maturities and yields, and investors
cannot spread their risk across a broader portfolio.

50
 CHAPTER 4
DATA ANALYSIS

51
 CHAPTER 4 - DATA ANALYSIS

Question. 1. Do you invest in stock trading?

[ ] Yes [ ] No

detail investment percentage

yes 119 68%

do not do 56 32%
all 175 100%

invest in the stock

market
150 119 Yes
100 56 No
50
0
Yes No

invest in the stock

market
(percentage) Yes
36 %

No

68%

Interpretation:

From the figure above, we can see that:

68% of investors (119) have invested in stock trading .

Also, 36% (56) of investors do not invest in stock trading .
Question. 2. When investing, which investment option offers the best return?

52
 investment options share of investors

stock 53%
Initial public offering 18%
investment trust 8%
hook up 7%
time deposit Four%
other Ten%

investors are investing

Multiple investment options
( % of investors )
10 %
4% Equity Share

7%
IPO

8% Mutual Funds
53 %
Bonds

18%

Interpretation :

According to the previous chart:

Stock trading offers the best returns compared to other investment options. 18% of
investors believe an IPO (primary market) offers the best return. 8% of investors
believe in mutual funds We offer the best returns. Seven percent of investors believe

the bond market offers the best returns. 4% of investors believe term deposits
provide the best returns.

We believed other investment options would yield the best returns.

53
According to them, other investment options are:

 commodity market
 insurance
 Government bonds, etc.

54
 Question 3. What motivates you to invest in stock trading?

motivation factor share of investors

return 49%
Liquidity 26%
safety 7%
Capital write-up 17%
other 1%

for investors to invest in the stock market

(% of investors
)

5%
16%
Return
6% 48%
Liquidity

Safety

Capital Appreciation
25%
Other

Interpretation :

According to the photo above:

Investing in stock trading for returns .

26% of investors are motivated by liquidity to invest in stock trading . 6%

Percentage of investors who invest in equity trading for safety reasons .

16% of investors are motivated by capital appreciation to invest in stock trading .

55
5 % of investors are motivated to invest in stock trading by other factors such as
investment, profit .

56
Question. 4. What percentage of your income do you invest in stock trading?

Income % share of investors

less than 5% twenty three%

5%-10% 45%
10%-15% 17%
15%-20% 7%
20% to 25% Five%
25% or more 3%

Percentage of Income Investors

Investing in the Stock Market
(% of investors)
5% 3%
7% 23 %
Less than 5%

5%-10%
17 %
10%-15%

15%-20%

20%- 25%

More than 25%

45 %

Interpretation :
According to the photo above:

23% of investors invest less than 5% of their income in stock trading.

45% of investors invest 5% to 10% of their income in stock trading.
17% of investors invest 10%-15% of their income in stock trading.
7% of investors invest 15% to 20% of their income in stock trading.
5% of investors invest 20%-25% of their income in stock trading.
Also , 3% of investors invest more than 25% of their income in stock trading .

57
 Question. 5. How to trade stocks?

transaction type share of investors

daytime 13%
deliver the goods 31%
try to guess 26%
Arbitrageur 17%
hedge 11%
other 2%

2%
11 % 13 % Intraday

Delivery

Speculation
17 %
Arbitragers

31 % Hedging

Other

26 %

Interpretation :
According to the ph oto above:

Investor's day trading of stocks .

“Intraday trading is the day only. It means that any security is 'buyed and sold
within a day'. "

31% of investors invest in underlying trades on stock exchanges for delivery .

is considered a safer way to trade stocks compared to intraday trading. In
deliverybased trading, you buy shares on the trading day and sell only after delivery of
58
those shares has been received in your demat account. " 26% of investors trade as
speculators in stock trading .

“A speculator is an investor who is willing to take above-average risk in exchange for

above-average potential future profits . Get assets . _ "

17% of investors are stock trading arbitrageurs.

“ An arbitrageur is someone who buys a security in one market and immediately
resells it in another market, hoping to profit from the spread .” 11% of investors are trading
stocks as a hedge .
“Hedging means mitigating or controlling risk. A hedger wants to eliminate or reduce
the price risk they are already facing. ”
In addition , 2% of investors trade stocks for other purposes.

Question 6. What is the timeframe for investing in stock trading?

time frame share of investors

Within 1 month 14%

1-3 months 28%
3-6 months 15%
6-12 months 18%
12 months or more twenty five%

59
 30 % 28%
25 %
25 %

20% 18 %
14 % 15%
15 %

10 %

5%

0%
Less than 1 1 to 3 3 to 6 6 to 12 More than
Months Months Months Months 12 Months

Interpretation:
According to the photo above:
14% of investors have invested in stock trading for less than a month.
I invest in stock trading for 1-3 months .
The 15% time horizon is 3-6 months.
stock trading periods are 6-12 months.
twenty five% Percentage of investors who invest in stock trading above 12 months
.
Question 7. What is the expected annual return on stock trading?

response rate share of investors

5% - 10% 12%
10% – 15% 18%
15% – 20% 32%
20% – 25% 26%
25% –30% 8%
30% or more Four%

60
 4% 12%
8%
rate of return
5% – 10 %

18 % 10% – 15 %

26 % 15% – 20%

20% – 25%

25% –30%

30% and above

32 %

Interpretation :
According to the photo above:

return of 5% to 10% from stock trading .

return of 10% to 15% from stock trading .
return of 15% to 20% from stock trading .
return of 20% to 25% from stock trading .
Here, investors have higher expectations for stock trading in the above two
situations.
return of 25% to 30% from stock trading .
4% of the house is 30% of the return from stock trading .
Question 8. Are you satisfied with the current performance of the stock market in terms
of expected returns?

response rate Number of percentage

investors

completely satisfied 30 17%

satisfaction 73 42%
neutral 49 28%
complain 18 Ten%
completely Five 3%
dissatisfied

61
 all 175 100%

80 73
70
60
49
50
40
30
30
18
20
10 5
0
Fully Satisfied Satisfied Neutral Unsatisfied Fully
Unsatisfied

Interpretation :

According to the photo above: am completely satisfied

with the stock trading performance of stock trading .
49 investors are neutral about current stock trading performance .
I was dissatisfied with stock trading .
Five investors were also completely dissatisfied with stock trading.
Question. 9. Who encouraged you to enter the stock market?

detail share of investors

friend 28%
relatives 12%
consultant twenty five%
media 17%
investigation report Ten%
magazine Five%
other 3%

62
 5% 3%
Friends
10 % 28 % Relatives

Advisers

Media
17 %
Research Report

Magazines
12%
Other
25 %

Interpretation:
According to the photo above:
Friends drive 28% of investors to stock trading.
Relative incentive 12% investors start trading stocks.
25% of investors trade stocks on the advice of a financial advisor. The
media encouraged 17% of investors to participate in stock trading.
magazine Encourage 10% of investors to participate in stock trading .
Reading magazines motivates me to start trading stocks .
On the other hand, 3% of investors who are motivated by other factors such as
selflearning and their own opinions start trading stocks.

Question 10. What would you say is the most important factor when choosing an
industry?

detail percentage

Market trend 29%

Profitability twenty three%

63
 economic situation 14%
Industry situation 16%
Are there mature enterprises under the 12%
division?

government policy Five%

any other 1%

Factors investors should consider when

choosing an industry
(% of investors
)
5% 1% Market Trend
12%
29% Profitability

Economic Condition

Industry Condition
16%
Existence of well established
Companies under Sectors
Government Policy

14% 23% Any Other

Interpretation:
According to the photo above:
Market trends are cited as the most important factor when choosing an industry .

investors cite profitability as the most important factor when choosing an industry .
investors cite economic conditions as the most important factor when choosing an
industry .
investors cite industry conditions as the most important factor when choosing an
industry.
investors cite having a well-established company within the industry as the most
important factor when choosing an industry.
investors cite government policy as an important factor in choosing an industry .

64
 1% of investors consider other factors when choosing an industry, including key
factors such as a company's global positioning .

Question 11. Which sector are you most optimistic about?

(Put 1-5 orders in the box provided)

I chose to study only these five areas here.

Department Ranking of Respondents (Ranking)

1 2 3 Four Five all

oil and gas industry 44 30 49 twenty 31 175

one
banking 26 twenty 53 42 30 175
four
Information technology 20 40 47 35 33 175
industry

Infrastructure 37 32 33 28 45 175
department

automotive industry 35 30 28 52 30 175

all 162 156 210 178 169 875

65
 100% 1 st Rank
26 20
37 35
90% 44
80% twenty four 40 2 nd Rank
32 30
70% 30
60% 53 3rd Rank
47 28
33
50%
49
40%
28 4 th Rank
30% 42 35 52
twenty one
20%
31 30 33 45 30
5 th Rank
10%
0%
Oil & Gas Sector
Banking Sector IT SectorInfrastructure Sector
Automobile Sector

According to the photo above:

How many investors rank 1-5 in the industry ?

Department Investor rank

oil and gas industry 44 1 time

Information technology 40 2nd time

industry

banking 53 3rd time

automotive industry 52 4th_ _

Infrastructure department 45 5th_ _

66
 Interpretation:
Based on previous data:
Oil and gas industry:
 1st place was 44 people, 2nd place was 30 people, 3rd place was 49 people, 4th place was
21 people, and 5th place was 31 people .

 Here, all 44 investors chose the oil and gas industry as the #1 industry, whereas all
industries were #1.
Information Technology Department:
 20 companies ranked 1st , 40 ranked 2nd , 47 ranked 3rd , 35 ranked 4th, and 33 ranked 5th .

 Here, more than 40 investors choose the IT industry second. 2nd place in all industries .
Banking:
 1st place
was 26 people, 2nd place was 24 people, 3rd place was 53 people , 4th place was 42
people , and 5th place was 30 people .

 53 investors chose the third highest bank across all industries .

Automotive industry:
 1st place
was 35 companies, 2nd place was 30 companies, 3rd place was 28 companies, 4th place

was 52 companies, and 5th place was 30 companies .

 Here, more than 52 investors ranked the automotive industry fourth overall .
Infrastructure department:
 37 companies ranked 1st , 32 ranked 2nd , 33 ranked 3rd , 28 ranked 4th, and 45 ranked 5th .

 Here, all 45 investors rank the infrastructure sector fifth among all industries .

Question. 12. List the most important factors in choosing the company of your choice.

Factors influencing company share of investors

selection

EPS 19%

67
 dividend 17%

broker's advice 15%

market price 7%

Company performance 16%

PER twenty four%

other 2%

Factors Affecting Investors used for

company selection
(% of investors )

2%
19 % Earning Per Share
24%
Dividend

Broker’s advise

Market capitalization
17%
Performance of company
16 %
P.E. Ratio

7% 15% Other

Interpretation:
According to the data above:
19% of investors cite EPS as the most important factor when choosing a company in their
chosen industry .
17% of investors cite dividends as the most important factor when choosing companies in
their chosen industry .
15% of investors choose companies in their chosen industry based on broker
recommendations .

68
7% of investors believe that a company's market capitalization is an important factor in
choosing a company in the industry.
16% of investors believe that choosing a company in their chosen industry is the most
important factor for a company's performance.
Twenty-four percent of investors cite price/earnings ratio as the most important factor
when choosing companies in their industry .
2% of investors considered other factors, such as reference group recommendations .
external consultants, Such as stakeholders, company growth, market trends,
profitability and unique perceptions for choosing companies in this sector .

CHAPTER 5
FINDINGS,
CONCLUSION AND
RECOMMENDATION
S
69
 FINDINGS

 According to the survey, 68% of investors (119) have invested in stock trading .
Meanwhile , 36% (56) of investors do not invest in stock trading . Based on my sample size
of 175 .
 found that 53% of investors believe that trading stocks is a better investment option than
other investment options and provides the best returns .

 that 49% of investors who trade equities are return-focused and 26 % are returnfocused
. of investors are motivated by liquidity , with some also considering capital appreciation
and safety factors when investing in trading stocks in various sectors.

 found 45% of investors ready or interested in investing 5% to 10% of their stock trading
income. This means that many investors believe in stock trading growth as they prepare to
spend most of their income.
 few investors are positive about intraday trading . This shows that you are thinking about
safety when investing. 31% of investors invest in equity trading as a delivery-based trade,
and 26% trade as speculators in equity trading . That means 26% of investors are willing
to take above-average risk in exchange for above-average potential returns.
 28% of investors invested in stock trading for 1-3 months , The same proportion of investors
have long-term investments of more than one year.

 32% also found 15% to 20% of investors expected profits on stock trading and 26% 20%
to 25% of investors expect returns from stock trading. Here, investors have higher
expectations for stock trading.

 42% of investors are satisfied with the current expected return performance of stock trading
, while 28% are neutral to stock trading.

 I have found that most investors are motivated by friends who want to start trading
stocks. Investors are motivated by advisors, media, research reports , and other factors
such as self-investigation of current stock trading conditions.

 Another 29% of investors consider market trends, and 23% of investors cite profitability as
the most important factor when choosing an industry . There are other factors such as -
government policies, industry conditions and economic conditions are also important
factors in choosing an industry

70
 then found that 44 investors chose the Oil & Gas industry as #1 (compared to #1 across all
industries).
 40 investors choose the IT department second .
 53 investors rank third choice bank
 52 investors rank the automotive sector as the fourth choice
 45
investors rank the infrastructure sector as number 5
 we also found that 24% of investors consider P/E ratio and 19% consider EPS . 17%
of investors cite dividends as the most important factor when choosing companies from
these industries . Investors also consider other factors such as : external consultants,
Stakeholders, company growth, market trends, profitability , and self-perception , etc.
As A key factor in choosing companies from these selected industries .

71
 CONCLUSION

The training, I used a descriptive survey design as a questionnaire method to study "investor
behavior in stock trading in various industries." Respondents from Arihant Capital Markets
Limited from Indore's entire stock exchange.

Research shows that most people invest in stock trading to get high returns and invest most of
their income in stock trading to hedge their risks . Here, most people trade stocks for
speculative purposes and invest for 1-3 months. Generally speaking , investors with longterm
investments of more than a year are definitely suitable for stock trading. Most people are
motivated by friends and the media suggesting they start trading stocks. Most people have
higher expectations for stock trading. After all, some people are happy with stock trading,
others are not.

Oil and gas industry is a preferred industry based on market trends, profitability, industry
conditions, and economic conditions, and is also a key factor in choosing an industry ,
allowing investors to assess P/E ratio, EPS, and dividends also rank as the most important key
factor Select companies under these selected industries.

RECOMMENDATIONS

 Advice for investors:

 We prefer long-term investment strategies that offer modest returns and liquidity .

 Investors should not only invest in equities trading, but also in other safe securities
such as term deposits, government securities, bonds, mutual funds and insurance .
Example: prefer

o Equity – 50% o Other Safe

Securities – 50%

Therefore, you can get moderate returns through liquidity.

72
  Investors should invest at a lower price and sell their shares at a higher price.

 Investors should look at PER , EPS, the company's current growth rate and market
capitalization, etc. Therefore, investors can get a higher return on investment.

 Always invest extra money in the stock market. Do not invest with a loan from a bank
or other source.

 Advice for companies:

 My research found that only 68% of investors invest in stock trading, so the 32% of
those who don't invest in stock trading should be more concerned.

 brokerage firm or firm should actively promote equity investments for long-term
investment purposes.

 The majority of investors (53%) invest in the secondary market (stock trading) and
only a minority (18%) invest in the secondary market . Therefore, brokerages here
should encourage customers to invest in the primary market .

73
  Instead of switching to investing in other securities that offer modest returns, such as
mutual funds, bonds, and insurance, you should concentrate on trading stocks that you
don't invest in because they are risky .

 Brokerage firms also need to provide better services to investors to improve investor
satisfaction.

 Businesses should also pay attention to students, as stock trading is risky and young
people like to take risks.

Most investors invest in the oil and gas sector and the IT sector . Therefore, companies should
advise investors to invest in other industries that are more profitable.

BIBLIOGRAPHY

74
 BIBLIOGRAPHY

Books:

 Gordon & Natrajan, Financial Markets and Services, 2nd Rev. Reprint,
Himalaya Press, 2005.
 INVESTMENT MANAGEMENT – VA AVADHANI

Website:

 world wide web. Arihant Capital Markets Limited.com

 www.nseinda.com
 www.bseindia.com
 world wide web. moneycontrol.com
 www.investopedia.com
 www.wikipedia.com
 www.autherstream.com
 www.myrisis.com

@Newsprint :
 economic era
 Times of India

Other :

 Arihant Capital Markets Limited brooch  NCFM – Capital Market Trader

Module
 Other Capital Markets Magazines

75
APPENDIX

76
 APPENDIX

This information is for purely academic purposes and is kept completely confidential. Please
fill out the questionnaire below.

1. Would you like to invest in stock trading?

[ ] Yes [ ] No

2. Which investment option offers the best returns if you want to invest?

[ ] Stocks [ ] IPO [ ] Investment trusts

[ ] Bonds [ ] Time deposits [ ] If there are other
__________

3. What motivates you to invest in stock trading?

[ ] Return [ ] Liquidity [ ] Security

[ ] Capital appreciation [ ] Other, please specify ___________

4. What percentage of your income do you invest in stock trading?

[ ] Less than 5% [ ] 5% to 10% [ ] 10% to 15%

[ ] 15%-20% [ ] 20%-25% [ ] 25% or more

5. How do you trade stocks?

[ ] Plate [ ] Delivery [ ] Speculation [ ]

Arbitrage [ ] Hedging [ ] Other, please specify
_____________
6. What is the timeframe for investing in stock trading?

[ ] Less than 1 month [ ] 1-3 months [ ] 3-6 months

[ ] 6-12 months [ ] 12+ months

7. What is the expected rate of return for stock trading in one year?

77
 [ ] 5% – 10% [ ] 10% – 15% [ ] 15% – 20%
[ ] 20% to 25% [ ] 25% to 30% [ ] 30% or more

8. Are you satisfied with your current stock trading performance in terms of
expected returns?
[ ] Completely satisfied [ ] Satisfied [ ] Normal
[ ] dissatisfied [ ] completely dissatisfied

9. Who encouraged you to enter the stock market?

[ ] Friends [ ] Relatives [ ] Advisor [ ] Media

[ ] Investigative Report [ ] Journal [ ] Other ___________

10. What factors do you think are the most important when choosing an industry?

[ ] Market trends [ ] Profitability [ ] Economic conditions

[ ] Industry situation [ ] Companies in the mature enterprise sector
[ ] Government Policy [ ] Other, please specify___________

11. Which sector are you most optimistic about? (Put 1-5 orders in the box provided)

Oil & Gas Sector Infrastructure Sector

Bank Automotive industry
Please specify if you have an IT department _____________

12. List the most important factors in choosing the company you want to work for.

[ ] Earnings Per Share [ ] Dividends [ ] Broker Recommendations [ ] Market

Capitalization [ ] Company Performance [ ] PE Ratio [ ] If there are other
______________

13. If you have any suggestions, please explain.

__________________________________________________________________
__________________________________________________________________
____________________________________

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 Personal Information:-

• name: _______________________________________________
• address: _______________________________________________
_______________________________

• Email: ……………………………………..…………………………………… 
Contact number: ……………………………………..
• gender male Female

• Year:

[ ] Under 20 [ ] 21-30 [ ] 31-40

[ ] 41-50 years [ ] 51-60 years [ ] 60 years and over

• Profession:
[ ] Business [ ] Service [ ] Employees
[ ] Student [ ] Other, please specify _____________

• Income (annual):
[ ] Less than INR 100,000. [ ] 100,000 to 200,000 rupees. [ ] 200,000-300,000 rupees.

[ ] 300,000-400,000 rupees. [ ] 400,000-500,000 rupees. [ ] Above Rs 500,000.

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