A project report on a study of Investors Perception towards Investment in Equity Market with special reference ShareKhan Limited Man!

alore Su"mitted "y Karen Sylvia Pais #e! no$ %%%&'()%* +nder the valua"le !uidance of Ms, Sumathi -aculty of M.A department In partial fulfillment of the requirements -or /he award of the de!ree of Master0s in .usiness Administration 1M.A2

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4E:LA#A/I85
I hereby declare that this project report titled a study on investors perception towards investment in equity market, SHARE HA! "I#I$E%, #A!&A"'RE in partial (ul(illment o( the #asters in )usiness Administration *#)A+, #an,alore -niversity, is my ori,inal work and has not been submitted (or the award o( any other de,ree, diploma, (ellowship or any other similar title or pri.es/

0lace1 #an,alore %ate1

aren Sylvia 0ais

A:K587LE49EME5/
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As I present this project report, I take this opportunity to e2press my ,ratitude to all those who e2tended their co3operation to me in brin,in, out this work to a success(ul culmination/ I owe my sincere thanks to 4r, 4evaraj K the sta(( members o( the department/ I would like to e2press my heart (ull ,ratitude to my project ,uide #s/ Sumathi (or providin, the valuable ,uidance and insi,ht durin, the course o( the project I owe a deep ,ratitude to Mr, Adarsh kumar A )ranch In 5har,e o( Share han "imited (or ,ivin, the opportunity to do my project and all the sta(( members (or their co3operation and support/ %irector4 S4M P9 :E5/#E -8#

MA5A9EME5/ studies A54 #ESEA#:3 (or the encoura,ement received (rom him and all

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$his project report entitled DInvestors 0erception towards investment in equity market (ocuses on the investors perception towards investment in various sectors re,ardin, equity market, their pre(erence o( investment in equity market, and scope (or potential ,rowth o( equity market/

Methodolo!y of the Study

$his study is one o( the best instruments to identi(y the investin, pattern o( investors to invest in various sectors and to study di((erent sectors o( 5apital market/ $he study is care(ul inquiry or e2amination to discover new in(ormation and relationship and to e2pand and to vary e2istin, knowled,e/ It always starts with question or any problem and (inds answer o( problem by usin, scienti(ic method/ It ,ives complete knowled,e about any problem or question/

8"jectives of the Study

Every study is conducted within (or some speci(ic purpose or to solve some problem/ @hen any study is conducted it has some primary objective that helps to solve the main problem whereas a secondary objective helps to solve peripheral problems/ $he primary and secondary objectives o( this project are1 Primary 8"jective $he primary objective o( carryin, out this research is13 EInvestors 0erception towards Investment in Equity #arketF Secondary 8"jective $o (ind out the most pre(erred investment option in the Equity #arket/ $o (ind out how investors are motivated (or investin, in Equity #arket/ $o study the ,eneral investment criteria o( people/ $o know the peoples time hori.on (or investin, in Equity #arket and to know the rate o( return e2pected by them/ $o study the interest o( people (or (urther investment in Equity #arket/ 73

 $o assess the satis(action level o( investors in Equity #arket/ $o classi(y the di((erent sectors on the basis o( investors behavior re,ardin, investin, in Equity #arket/ $o identi(y the (actors which in(luence the investors while investin, in various selected sectors

Project 4esi!n
0roject %esi,n is the plan structure and strate,y i( investi,ation conceived so as obtain to question and to control variance/ A project desi,n is the master plan or model (or acquirin, the in(ormation needs (or solvin, the problem/ It decides the source o( in(ormation and methods (or ,atherin, the data/ A questionnaire and other (orms are tested to use collection o( data/ $he project desi,n has broadly three cate,ories/ $hey are13 E2ploratory Study %escriptive Study 5ausal Study

4escriptive Study
In this report 4escriptive Study 4esi!n is used for conductin! survey on >Investors perception for investin! in Equity Market?, %escriptive Study, also known as statistical study describes data and characteristics about the population or phenomenon bein, studied/ %escriptive study answer the question who, what, where, when and how/ $his study is comple2 and determines hi,h de,ree scienti(ic skill to study the problem/ $he description is used (or (requencies, avera,es and other statistical calculations/ '(ten the best approach, prior to writin, descriptive study, is to conduct a survey investi,ation/ Aualitative study o(ten has the aim o( description and studies may (ollow3up with e2aminations o( why the observations e2ist and what the implications o( the (indin,s are about/

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In short %escriptive Study deals with everythin, that can be counted and studied/

4ata :ollection Method

%ata collection usually takes place early on in an improvement project and is o(ten (ormali.ed throu,h a data collection plan which o(ten contains the (ollowin, data collection methods/ $he source o( data collection method is as (ollows13 0rimary %ata Secondary %ata

Primary 4ata 0rimary %ata means data collected directly (rom (irst3hand e2perience/ #eans data collected (or the (irst time by any person (or any study/ $here are many methods o( collection primary data and the main methods include13 Auestionnaire #ethod Interview #ethod ;ocus &roup #ethod 'bservation #ethod 5ase3studies #ethod %iaries #ethod /he @uestionnaire Method is used for the purpose of collectin! the Primary 4ata, Secondary 4ata

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Secondary %ata means data which are collected by any one (or a particular study purposes and which are used by others (or di((erent purpose/ Secondary 4ata for the study is collected throu!h company "rochures we"sites "ooks and ma!aAines,

Samplin! Plan
Samplin, is the process to analy.e the whole population by analy.in, a part o( it/ $he e((ectiveness o( the report depends on the sample si.e selected (rom the population/ Here, tar,et population is decided who are the actual and potential investors, each sample has the chance to be selected on an equal basis and this study has been conducted throu,h surveyin, the whole o( the equity market/ A sample o( 6GGm investors is taken (or the purpose o( study/

.enefits of the Study

$he study carried out under the title o( EInvestors 0erception towards Investin, in Equity #arketF will be bene(ited as under13 $o know in which sector investors are investin, more/ $he study will be help(ul in knowin, that what (actors consider most important while selectin, the Sectors and company under the sectors/ $he study will be help(ul in knowin, that how the investors are trade in Equity #arket/ $he study will be help(ul in knowin, responses re,ardin, problems (aced by the investors while investin, in Equity #arket/ $he study will be help(ul in knowin, that what are the motivational (actors that encoura,in, to the investors (or investin, in Equity #arket/

Limitations of Study
As no human bein, is per(ect, it is not possible (or anyone to make the best or per(ect report/ Each person has some level o( knowled,e and is a((ected by some uncontrollable (actors within

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which heHshe has to work/ So, it mi,ht possible that there can be some limitations in this report that may be due to my knowled,e level or some other (actors/ Accordin, to me the limitations are13 Respondents mi,ht have (elt hesitation in providin, in(ormation related to their a,e, income etc/ so, there can be some data that mi,ht questionable because o( unwillin,ness o( respondents to ,ive ri,ht in(ormation/ Sample selected may not represent whole population, as sample si.e selected is very small in proportion to population due to time and cost constraints/ $he response ,iven by some o( the respondents may be biased/

I54+S/#B P#8-ILE
$he Indian retail brokera,e industry consists o( primarily act as a,ents (or the buyin, and sellin, o( securities on a commission or transaction (ee or brokera,e basis/ An a,ent char,es a (ee or commission (or e2ecutin, buys and sells orders submitted by an investor/ A stockbroker may or may not be also an investment advisor/ A stock broker is re,ulated pro(essional broker who buys and sells shares o( other securities throu,h market makers or A,ency 'nly ;irms on behal( o( investor/ ;ollowin, dia,ram ,ives the structure o( Indian ;inancial System1 I!%IA! ;I!A!5IA" S:S$E#

;inancial Institutions

;inancial #arkets

;inancial Instruments

;inancial Services

Re,ulatory

'thers 73

0rimary

Secondary

Intermediary )ankin, !on3)ankin,

Short term

#edium term

"on, term

!on Intermediary

'r,ani.ed

-nor,ani.ed

0rimary

Secondary

5apital #arket

#oney #arket

;i, no1 9/6 -inancial Market$ ;inancial #arkets are help(ul to provide liquidity in the system and (or smooth (unctionin, o( the system/ $hese markets are the centers which provide (acilities (or buyin, and sellin, o( (inancial claims and services/ $he (inancial markets match the demands o( investment with the supply o( capital (rom various sources/ Accordin, to the (unctional basis (inancial markets are classi(ied into two types1 $hey are1 #oney #arket *short term+ 5apital #arket *lon, term+ Accordin, to institutional basis a,ain classi(ied into two types they are1 'r,ani.ed ;inancial #arket !on3'r,ani.ed ;inancial #arket

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$he or,ani.ed market comprises o( o((icial market represented by reco,ni.ed institutions, bank and ,overnment *SE)I+ re,isteredHcontrolled activities and intermediaries/ $he unor,ani.ed market is composed o( indi,enous bankers, money lenders, and individual pro(essional and non3 pro(essionals/ Money Market$ #oney #arket is the place where we can raise short term capital/ It is classi(ied into1 Inter3bank call money market )ill market )ank loan market

E/,/ $reasury )ills, 5ommercial 0apers, 5erti(icate o( %eposits etc/

:apital Market$ 5apital #arket is the place where we can raise lon, term capital/ It is classi(ied into two types they are1 0rimary #arket Secondary #arket E2ample1 Shares, %ebentures, "oans/

Primary Market
0rimary #arket is ,enerally re(erred to the market o( !ew Issues o( #arket (or mobili.ation o( resources by the companies and ,overnment undertakin,s, (or new project and also (or e2pansion, moderni.ation, addition, and diversi(ication and up ,radation/ 0rimary market is also re(erred to as new issue market/ 0rimary market operations include new issues o( shares by new 73

and e2istin, companies, (urther and ri,ht issues to e2istin, shareholders, public o((ers, and issue o( debt instruments such as debentures, bonds etc/ $he primary market is re,ulated by the Securities and E2chan,e )oard o( India *SE)I a ,overnment re,ulated authority+/ -unction$ $he main services o( the primary market are ori,ination, underwritin, and distribution/ 'ri,ination deals with the ori,in o( the new issue/ -nderwritin, contract make the shares predictable and remove the element uncertainty in the subscription/ %istribution re(ers to the sale o( securities to the investors/ $he (ollowin, are the market intermediaries associated with the market1 #erchant bankerHbook buildin, lead mana,er Re,istrar and trans(er a,ent -nderwriterHbroker to the issue Adviser to the issue )anker to the issue %epository %epository participant

Investors 0rotection in the 0rimary #arket $o ensure healthy ,rowth o( primary market, the investin, public should be protected/ $he term investor protection has a wider meanin, in the market/ $he principal in,redients o( investors protection are1 0rovision o( all the relevant in(ormation 0rovision o( accurate in(ormation $ransparent allotment procedures without any bias 73

Secondary Market
$he primary market deals with the new issue o( securities/ 'utstandin, securities are tradin, in the secondary market, which is commonly known as stock market or stock e2chan,e/ $he secondary market is a market where scrips are traded/ It is a market place which provides liquidity to the scrips issued in the primary market/ $hus, ,rowth o( secondary market depends on the primary market/ $radin, activities in the secondary market are done throu,h the reco,ni.ed stock e2chan,es which are 9= in number includin, 'ver the 5ounter E2chan,e o( India *'$5E+, !ational Stock E2chan,e o( India, and Interconnected Stock E2chan,e o( India/ Secondary market operations involve buyin, and sellin, o( securities on the stock e2chan,e throu,h its members/ $he companies hittin, the primary market are mandatory to list their shares on or more stock e2chan,es in India/ "istin, o( scrips provides liquidity and o((ers an opportunity to the investors to buy or sell the scrips/ $he (ollowin, are the intermediaries in the market1 )rokerHmember o( stock e2chan,e3buyers broker and sellers broker 0ort(olio mana,er Investment advisor Share trans(er a,ent %epository %epository participants

Stock Markets in India

Stock e2chan,es are the per(ect type o( market securities whether o( ,overnment and semi3 ,overnment bodies or public bodies as also (or shares and debentures issued by the joint stock companies/ In the stock market, purchases and sale o( shares are a((ected in conditions o( (ree competition/ &overnment securities are traded outside the tradin, rin, in the (orm o( over the

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counter sales or purchase/ $he bar,ains that are struck in the tradin, rin, by the members o( the stock e2chan,es are the (airest prices determined by the basic laws o( supply and demand/ 4efinition of Stock ECchan!e Stock e2chan,e means anybody or individuals whether incorporated or not constituted (or the purpose o( assistin,, re,ulatin, or controllin, the business o( buyin,, sellin, or dealin, in securities/ $he securities include1 Shares o( public company &overnment securities )onds 3istory of Stock ECchan!es $he only stock e2chan,es operatin, in the 6<th century were those o( #umbai setup in 68B7 and Ahmadabad in 6<B=/ %urin, the war boom, a number o( stock e2chan,es were or,ani.ed/ Soon a(ter it became a central subject, central le,islation was proposed and a committee headed by A/%/ &orwala went into the bill (or securities re,ulation/ 'n the basis o( the committees recommendations and public discussion, the securities contract *re,ulation+ act became law in 6<7C/ -unctions of Stock ECchan!es Stock e2chan,es provide liquidity to the listed companies4 they help in tradin, and raise (unds (rom the market/ 'ver the 69Gyrs durin, which the stock e2chan,es have e2isted in this country and throu,h their medium, the central and the state ,overnment had raised cores o( rupees by (loatin, public loans/ #unicipal corporations, trust and local bodies have obtained (rom the public their (inancial requirements, and industry, trade and commerce the backbone o( the countrys economy have secured capital o( cores o( rupees throu,h the issue o( stocks, shares, debentures (or (inancin, their day to day activities, or,ani.in, new ventures and completin, projects o( e2pansion, diversi(ication and moderni.ation/ )y obtainin, listin, and tradin, (acilities, public investment increased and companies were able to raise more (unds/ $he quoted

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companies with wide public interest have enjoyed some bene(its and assets valuation has become easier (or ta2 and other purposes/

.8M.AB S/8:K ED:3A59E 1.SE2

$he )ombay Stock E2chan,e "imited is the oldest stock e2chan,e not only in the country, but also in Asia with a rich herita,e o( over 6== years o( e2istence/ In the early days )SE was established as E$he !ative Share and Stock )rokers Association/F It was established in the year 687B and became the (irst stock e2chan,e in the country to be reco,ni.ed by the ,overnment/ In 6<7C, )SE obtained a permanent reco,nition (rom the ,overnment o( India under the securities contract *Re,ulation+ Act 6<7C/ $oday, )SE is the world !o6 e2chan,e in terms o( number o( listed companies and the worlds (i(th in handlin, the transactions throu,h its electronic tradin, system/ $he companies listed on )SE command a total market capitali.ation o( -S% $rillion 6/GC as o( Iuly 9G66/ )SE reaches to over >GG cities and town nation3wide and has around ><=B listed companies4 with over BB>7 scripts bein, traded as on =6st Iuly 9G66/ $he )SE Inde2, SE!SEJ, is Indias (irst and most popular stock market benchmark inde2/ $he )SE SE!SEJ *Sensitiveinde2+, also called the E)SE =GF, is a widely used market inde2 in India and Asia/ Sense2 is tracked worldwide/ It constitutes =G stocks representin, 69major sectors/ $he SE!SEJ is constructed on a D(ree3(loat methodolo,y, and is sensitive to market moments and market realities/ Apart (rom the SE!SEJ, )SE o((ers 9= indices, includin, 6= sectorial indices/ )SE provides an e((icient and transparent market (or tradin, in equity, debt instruments and derivatives/ )SE is the (irst e2chan,e in India and the second in the world to obtain an IS' <GG619GGG certi(ications/ It is also the (irst e2chan,e in the country and second in the world to receive In(ormation Security #ana,ement System Standard )S BB<<3939GG9 certi(ication (or its )SE 'n3"ine $radin, System *)'"$+/ )SE continues to innovate/ In 9GGC, it became the (irst national stock e2chan,e to launch its website in &ujarati and Hindi and now #arathi to reach out to a lar,er number o( investors/

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.SE 8n=Line /radin! 1.8L/2 )SE 'n3"ine $radin, *)'"$+ (acilities on3line screen based tradin, in securities/ )'"$ is currently operatin, in 97GGG $rader workstations located across over =7< cities in India/ .SE Eision $he vision o( )ombay Stock E2chan,e1 E$o emer,e as the premier Indian Stock E2chan,e by establishin, ,lobal benchmarksK/

.SE Profile
#% L 5E' Address $elephone @ebsite $radin, Hours Securities $radin, System Indices of .SE SE!SEJ )SE 6GG *$his covers )ankin, Sector+ )SE 9GG *$his covers 5apital &oods+ )SE 7GG *$his covers 5onsumer &oods+ )SE mid3cap inde2 )SE small3cap inde2 73 1 1 1 1 1 1 1 #r/ #adhu annan 0hiro.e Ieejeebhoy $owers, %alal Street #umbai3>GGGG6, India <6399399B969==> www/bseindia/com #onday3;riday, <167am to =1=Gpm Stocks, %erivatives and %ebt Electronic

)SE mid3cap inde2 covers the ;#5& sector and )SE small3cap inde2 covers the I$, #etal, 'il L &as, 0ower Industry, 0S-s etc/ )SE disseminates in(ormation on the 0rice Earnin,s Ratio, the 0rice to )ook ?alue Ratio and the %ividend :ield 0ercenta,e on day to day basis o( all its major indices/ $he values o( all )SE indices are updated every 67 seconds durin, market hours and displayed throu,h the )'"$ system, )SE website and news wire a,encies/ All )SE Indices are reviewed periodically by the )SE Inde2 5ommittee/ $his committee which comprises eminent independent (inance pro(essionals (rames the broad policy ,uidelines (or the development and maintenance o( all )SE Indices/ $he )SE Inde2 cell carries out the day to day maintenance o( all indices and conducts research on development o( new indices/ Awards Achieved "y .SE $he @orld 5ouncil o( 5orporate &overnance has awarded a &olden 0eacock &lobal 5SR Award (or )SEs initiatives in 5orporate Social Responsibility *5SR+/ I5IA Award (or e2cellence in (inancial reportin, (or the year 9GGC39GGB/ )SE has won the Asia30aci(ic award HR# awards (or its e((orts in employer brandin, throu,h talent mana,ement at work, health mana,ement at work and e2cellence in HR throu,h technolo,y/

5A/I85AL S/8:K ED:3A59E 15SE2

3IS/8#B 8- 5SE 5apital #arket re(orms in India and the launch o( Securities and E2chan,e )oard o( India *SE)I+ accelerated the incorporation o( the second Indian Stock E2chan,e called !ational Stock E2chan,e *!SE+ in 6<<9/ A(ter (ew years o( operations, the !SE has become the lar,est stock e2chan,e in India/ $hree se,ments o( the !SE tradin, plat(orm were established one a(ter another/ $he @holesale %ebt #arket *@%#+ commenced operation in Iune 6<<>/ ;inally, the ;utures and 'ptions se,ment be,an in operatin, 9GGG/ $oday the !SE takes 6> th position in the top >G (utures e2chan,es in the world/

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In 6<<C, the !ational Stock E2chan,e o( India launched SL0 5!J !i(ty and 5!J Iunior Indices that make up 6GG most liquid stocks in India/ 5!J !i(ty is a diversi(ied inde2 o( 7G stocks (rom 97 di((erent economy sectors/ $he indices are owned and mana,ed by India Inde2 Services and 0roducts "imited *IIS"+ that has a consultin, and licensin, a,reement with Standard and 0oors/ In 6<<8, $he !ational Stock E2chan,e o( India launched its website and was the (irst e2chan,e in India that started tradin, stock on the internet in 9GGG/ $he !SE has also proved its leadership in the Indian ;inancial #arket by ,ainin, many awards such as D)est I$ -sa,e Award by 5omputer Society in India *in 6<<C and 6<<B+ and 5HI0 @eb Award by 5HI0 ma,a.ine *6<<<+/ $he !ational Stock E2chan,e o( India "imited is the #umbai3based stock e2chan,e/ It is the lar,est stock e2chan,e in India in terms o( daily turnover and number o( trades, (or both equities and derivatives tradin,/ !SE has a capitali.ation o( around ` >B, G6,<9= core and is e2pected to become bi,,est stock e2chan,e in India in terms o( market capitali.ation/ $hou,h a number o( other e2chan,es e2ist, !SE and )ombay Stock E2chan,e are the two most si,ni(icant stock e2chan,es in India and between them are responsible (or the vast majority o( share transactions/ !SE is mutually owned by a set o( leadin, (inancial institutions, banks, insurance companies and other (inancial intermediaries in India but its ownership and mana,ement operate as separate entities/ $here are at least 9 (orei,n investor !:SE Euro ne2t and &oldman Sachs who have taken a stake in the !SE/ As o( 9G6G, the !SE ?SA$ terminals, 9B<< total, cover more than 67GG cities across India/ In 'ctober 9G66, the equity market capitali.ation o( the companies listed on !SE was -SM 6/>C trillion, makin, it the second lar,est stock e2chan,e in South Asia/ !SE is the third lar,est Stock E2chan,e in the world in terms o( number o( trades in equities/ It is the second (astest ,rowin, stock e2chan,e in the world with a recorded ,rowth o( 6C/CN/ 8#I9I5S $he !ational Stock E2chan,e o( India was promoted by leadin, (inancial institutions at the behest o( the &overnment o( India, and was incorporated in !ovember 6<<9 as a ta2 payin, 73

company/ In April 6<<=, it was reco,ni.ed as a Stock E2chan,e under the Securities 5ontracts *Re,ulation+ Act, 6<7C/ !SE commenced operations in the @holesale %ebt #arket *@%#+ se,ment in Iune 6<<>/ $he 5apital #arket *Equities+ se,ment o( !SE commenced operations in !ovember 6<<>, while operations in the %erivatives se,ment commenced in Iune 9GGG/ MA#KE/S 5urrently, !SE has the (ollowin, major se,ments o( the capital market1 Equity ;utures and 'ptions Retail %ebt #arket @holesale %ebt #arket 5urrency ;utures

!SE has become the (irst Stock E2chan,e to ,et approval (or the interest rate (utures as recommended by SE)I3R)I committee, on =6Au,ust 9GG<, a (utures contract based on BN 6G year &'I )ond *!'$I'!A"+ was launched with quarterly maturities/ H'-RS !SEs normal tradin, sessions are conducted (rom <1GG am India $ime to =1=G pm India $ime on all days o( the week e2cept Saturdays, Sundays and '((icial Holidays declared by the E2chan,e *or by the &overnment o( India+ in advance/ $he e2chan,e in association with )SE *)ombay Stock E2chan,e "td+ thinkin, to revise its timin,s (rom <1GG am India $ime till 71GG pm India $ime/ However, on %ec 6B, 9GG<, a(ter stron, protest (rom brokers, the E2chan,e decided to postpone the chan,e in tradin, hours till Ian G>, 9G6G/ !SE new market timin, (rom Ian G>, 9G6G is <1GG am till =1=G pm India $ime/ 5SE 9#8+P !ational Securities 5leanin, 5orporation "td *!S55"+

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 !ational Securities %epository "td *!S%"+ India Inde2 Service L 0roducts "td *IIS"+ !SE/I$ "td %otE2 International "imited

Indices of 5SE !SE also set up as inde2 services (irm known as India Inde2 Services L 0roducts "imited *IIS"+ and has launched several stock indices, includin,1 SL0 5!J !i(ty *Standard L 0oors 5RISI" !SE Inde2+ 5!J !i(ty Iunior 5!J 6GG *O SL0 5!J !i(ty P 5!J !i(ty Iunior+ SL0 5!J 7GG *O 5!J 6GG P >GG major players across B9 industries+ 5!J #idcap *introduced on 68 Iuly 9GG7 replacin, 5!J #idcap 9GG+

MISSI85 8- 5SE !SEs mission is settin, the a,enda (or chan,e in the securities markets in India/ $he !SE was set up with the main objectives o(1 Establishin, a nation3wide tradin, (acility (or equities, debt instruments and hybrids/ Ensurin, equal access to investors all over the country throu,h an appropriate communication network/ 0rovidin, a (air, e((icient and transparent securities market to investors usin, electronic tradin, system/ Enablin, shorter settlement cycles and book entry settlements system 73

#eetin, the current international standards o( securities markets/

$he standard set by !SE in terms o( market practices and technolo,ies have become industry benchmarks and are bein, emulated by other market participants/ !SE is more than a mere market (acilitator/ Its that (orce which is ,uidin, the industry towards new hori.ons and ,reater opportunities/ !SE has several advanta,es over the traditional tradin, e2chan,es/ $hey are as (ollows1 !SE brin,s an inte,rated stock market tradin, network across the nation/ Investors can trade at the same price (rom anywhere in the country since inter3market operations are streamlined coupled with the countrywide access to the securities/ %elays in communication, late payments and the malpractices prevailin, in the traditional tradin, mechanism can be done away with ,reater operational e((iciency and in(ormational transparency in the stock market operations, with the support o( total computeri.ed network/ -nless stock markets provide pro(essionali.ed service, small investors and (orei,n investors will not be interested in capital market operations/ 5apital market bein, one o( the major sources o( lon,3term (inance (or industrial projects, India cannot a((ord to dama,e the capital market path/ In this re,ard !SE ,ains vital importance in the Indian capital market system/ 7hy people trust 5SEF +n"iased $he !ational Stock E2chan,e o( India *!SEI"+ has been trusted by the securities markets (or its unbiased independence and pro(essionalism/ $he (unction o( (orecastin, has become more meanin,(ul as the in(ormation comes (rom a source, which is not only reliable but has no vested interest o( its own in the market movements/ Market #epresentation

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!SE3#I)I%H#I)'R is based on rates polled by !SE (rom a representative panel o( =6 banksHinstitutionsHprimary dealers/ /ransparent $he re(erence rate is released to all the market participants simultaneously throu,h various media, makin, it transparent with the aspiration o( the market/ Ensurin, transparency helps the market participants to jud,e the market mood and the probable rate one is likely to encounter in the market/ $his in(ormation is use(ul not only to the banks but also to the issuers and investors/ #elia"le $he hi,h level o( co3relation between actual deals and the re(erence rate ,ives an indication o( its reliability/ $he E)ootstrappin,F is scienti(ic and the values are ,enerated throu,h a system that has been e2tensively tested/ $he technique involves ,eneratin, multiple data sets based on the rates polled with a dynamically determined number o( identi(ication o( outliers, trimmin, the data set o( its e2treme values and computation o( the mean and its standard deviation/ Elimination of 5oise $he trimmin, procedure is vulnerable to market manipulation o( the rates due to the amount o( samplin, noise/ E2cessive trimmin, may lead to loss o( in(ormation whereas no trimmin, may lead to e2cessive in(luence o( the e2treme values/ $o derive a true representative benchmark (or the market !SE ensures that trimmin, at any point does not e2clude more than 9GN o( the observation (or the bid and (or the ask rates/ :onsistency $he E2chan,e ensures that every day the !SE3#I)I%H#I)'R alon, with the respective standard deviations are disseminated to the market at G<77 *IS$+ (or overni,ht rate and at 6967 *IS$+ (or 6>day, 6month and = month rates/ +sa!e $he !SE3#I)I%H#I)'R rate is used as a bench mark rate (or majority o( deals struck (or the interest Rate Swaps, ;orward Rate A,reements, ;loatin, Rate %ebentures and $erm %eposits/ 73

:8MPA5B P#8-ILE
Share han "td is one o( the leadin, retail stock brokin, house o( SS I &roup which is runnin, success(ully since 6<99 in the country/ It is the retail brokin, arm o( the #umbai3based SS I &roup, which has over ei,ht decades o( e2perience in the stock brokin, business/ Sharekhan o((ers its customers a wide ran,e o( equity related services includin, trade e2ecution on )SE, !SE, and %erivatives, depository services, online tradin,, investment advice etc/ the (irms online tradin, and investment site Q www/sharekhan/com3 was launched on ;eb 8, 9GGG/ $he site ,ives access to superior content and transaction (acility to retail customers across the country/ nown (or its jar,on3(ree, investor (riendly lan,ua,e and hi,h quality research, the site has a re,istered base o( over one lakh customers/ $he content rich and research oriented portal has stood out amon, its contemporaries because o( its stead(ast dedication to o((erin, customers best Q o( Q breed technolo,y and superior market in(ormation/ $he objective has been to let customers make in(ormed decisions and to simpli(y the process o( investin, in stocks/ 'n April 6B, 9GG9 Sharekhan launched speed trade, a net3based e2ecutable application that emulates the broker terminals alon, with host o( other in(ormation relevant to the day traders/ $his was (or the (irst time that a net3based tradin, station o( this caliber was o((ered to the trader/

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In the last si2 months speed trade has become a de (acto standard (or the %ay $radin, community over the net/ Sharekhans ,round network includes over B7G centers in 98G cities in India which provide a host o( tradin, related services/ Sharekhan has always believed in investin, in technolo,y to build its business/ $he company has used some o( the best3known names in the I$ industry, like Sun #icrosystems, 'racle, #icroso(t, 5ambrid,e $echnolo,ies, !e2,eni2, ?i,nette, ?eriSi,n;inancial $echnolo,ies India "td, Spider So(tware 0vt "td/ to build its tradin, en,ine and content/ $he #orakhiya (amily holds a majority stake in company/ HS)5, Intel and 5arlyle are the other investors/ @ith a le,acy o( more than 8G years in the stock markets, the SS I is one o( the leadin, players in institutional brokin, and corporate (inance activities/ SS I holds a si.eable portion o( the market in each o( these se,ments/ SS Is institutional brokin, arm accounts (or BN o( the market (or ;orei,n Institutional port(olio investment and 7N %omestic Institutional port(olio investment in the country and it has CG institutional clients spread over India, ;ar East, and -S/ ;orei,n Institutional Investors ,enerate about C7N o( the or,ani.ations revenue, with a daily turnover o( over -SM 9 million/ $he 5orporate ;inance section has a list o( very presti,ious clients and has many D(irsts to its credit, in terms o( the si.e o( deal, sector tapped etc/ the ,roup has placed over -SM 6 billion in private equity deals/ Some o( the clients include )0" 5ellular Holdin,, &ujarat 0ipavav, Essar, Hutchison, 0lanet Asia and Shoppers Stop/ Achievements of ShareKhan A Rated amon, the top 9G wired companies alon, with Reliance, H-II, In(osys, etc/ by D)usiness $oday, Ianuary 9GG> edition/ Awarded D$op %omestic )rokera,e House (our times by Euro money and Asia money/ 0ioneers o( online tradin, in India amon,st the top = online tradin, websites (rom India/ #ost pre(erred (inancial destination amon,st online brokin, customers/ @inners o( E)est ;inancial @ebsiteF award/ Indias most pre(erred brokers within 7years/ EAwaa. customers Award 9GG7F/ 73

-uture Plans$ 9, GG,GGG plus retail customers bein, serviced throu,h centrali.ed call centersHweb solutions/ )ranchesHSemi branches servicin, a((luentHa,,ressive traders throu,h hi,h skill (inancial advisor/ 97G independent investment mana,ersH(ranchisee servicin, 7G,GGG hi,hly valued clients/ !ew initiatives 0ort(olio mana,ement Services and commodities tradin,/

P#8-ILE 8- /3E :8MPA5B

!ame o( the 5ompany :ear o( Establishment Headquarter 1 1 1 Share han ltd/ 6<97 Share han SS I A39GC 0hoeni2 House 0hoeni2 #ills 5ompound "ower 0arel #umbai3#aharashtra, I!%IA3 >GGG6= !ature o( )usiness Services #utual ;und , I0's, 0#S and $echnical Research !umber o( Employees $urnover '((ices 1 1 1 73 98GG ` 6GGGG corers daily #ore than C>G outlets in 98G cities 1 1 Service 0rovider %epository Services, 'nline $radin,,

5lients1 %emat AHc $radin, AHc @orkin, 5apital Special ;eatures

1 1 1 1

669GGG 66GGGG #ore than =9GG corers Share han 5lassic Account Share han $rade $i,er Account %ial3n3$rade

@ebsite Slo,an Eision 1

www/sharekhan/com

:oure &uide to $he ;inancial Iun,le

$o be the best retail brokin, )rand in the retail business o( stock market

Mission E$o educate and empower the individual investor to make better investment decisions throu,h quality advice and superior service/F $he Share han provides its 5ustomers ;irst Step pro,ram, built speci(ically (or all investors, so treatment is3 >Bour 9uide /o /he -inancial 6un!le? means E'ur commitment to bein, your ,uide throu,hout your investin, li(ecycleF the institutional brokin, arm o( SS I was also awarded DIndias best brokin, house (or 9GG> by Asia #oney brokers poll recently and it has also won the presti,ious Awaa. 5onsumer ?ote Awards 9GG7 (or the #ost 0re(erred Stock )rokin, )rand in India, in the investment Advisors cate,ory/

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$hey have C7G share shops across 98G cities in India to ,et a host o( tradin, related services3 our (riendly customer service sta(( will also help with any account related queries/ Share han won the award by the vote o( consumers around the country, as part o( Indias lar,est consumer study cover BGGG respondents3 96 products and services across 96 major cities/ $he study, initiated by Awaa.3 Indias (irst dedicated 5onsumers 5hannel and member o( the worldwide 5!)5 !etwork and A5 !ielsen3 'R& #ar,, was aimed at understandin, the brand pre(erences o( the consumers and to decipher what are the most important loyalty criteria (or the consumer in each vertical/ $he reasons behind the pre(erences (or brands were unveiled by e2aminin, the (ollowin,1 $an,ible (eatures o( productHservice/ So(ter, intan,ible (eatures like ima,ery, equity drivin, pre(erence/ $actical measures such as promotionalHpricin, schemes/

Share han is in(act3 Amon, the top = branded retail service providers/ !o 6 player in online business/ "ar,est network o( branded brokin, outlets in the country servin, more than B,GG,GGG clients/ .rand 5ame $he company as a whole in its o((line business has named itsel( as SS I Securities 0rivate "imited3 Shripal Sevantilal antilal Ishwarlal 0rivate "imited/ $he company has pre(erred to name themselves under a blanket (amily name/ )ut, in its online division started since 6<<B, the company pre(erred to name itsel( as ESHARE HA!F itsel( su,,ests the business in which the company is dealin, so that the customer could easily identi(y the product or service cate,ory/ #ole of ShareKhan

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Inter(ace between the stock e2chan,e and the investor Assistance to investors in precise allocation o( (unds/ )uildin, awareness amon,st ,eneral public about stock market/

:ore Services of ShareKhan As a Share han customer you can decide the channel throu,h which you want to receive di((erent Services/

Equity and Derivatives Trading

Depository Services

Technical Research

Online

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$undamental Research

S%&RE'%& S(#!)*$( + (T &)) $OR *O,

Commoditie s Trading

Share shops

Dial- -Trade

!ort"olio #anagement

;i, !o1 =/6 'ther Services 0rovided )y Share han 'nline Services '((line Services %erivatives Services1 %emat L Remat $ransactions %erivatives $radin, *;utures and 'ptions+ 5ommodities $radin, I0's and #utual ;unds %istribution ;undamental Research $echnical Research 0ort(olio #ana,ement ;ree access to investment advice (rom Share hans Research team Share han ?alue "ine *a monthly publication with reviews o( recommendation, stocks to watch out (or etc/+ 73

%aily research reports and market review *Hi,h !oon L Ea,le Eye+ 0re3market Report *#ornin, 5uppa+ %aily tradin, calls based on $echnical Analysis 5ool tradin, products *%arin, %erivatives and #arket Strate,y+ 0ersonali.ed Advice "ive #arket In(ormation Internet3based 'nline $radin,1 Speed $rade

'nline Services 'nline )SE and !SE e2ecutions *throu,h )'"$ L !EA$ terminals+ #utual ;unds 5ommodity ;utures 0#S *0ort(olio #ana,ement Services+ %emat Services Share Shops

'((line Services

$radin, with the help o( %ealer $radin, without credit )y callin, to the share shops 5redit (acility *only in %elivery3based+ Special website (or '((line 5lients1 www/mysharekhan/com 73

0hysical contract notes

$he company provided mainly two types o( services to their customers (or the %emat Accounts/

'nline Account In the 'nline account, the company simply provides the terminal to the customers or clients and the clients can do tradin, himsel(Hhersel( when heHshe wants/ $he char,es o( o((line account is Rs/B7GH3, which is varies (rom company to company/ 'nline accounts are most popular than the o((line accounts/ In online accounts, the company provides = types o( (acilities to their clients as per the requirements1 5lassic Accounts $rade $i,er Accounts %ial3 n Q $rade 5lassical Accounts1 In this account, it is very simple to do tradin,/ Here customer has (irst to open %emat account with Share han and a(ter openin, an account he can ,et lo,in I% and password/ @ith the help o( lo,in I% and password, the client can lo,in to the Share han/com and in the classic aHc whatever companys in(ormation the clients wants, he has to type the companys name or code and he will ,et all the necessary in(ormation about that company and he can buy or sell the that companys stock or shares/ )ut, here in the classical account the client can access only one scrip at a time/ ;eatures o( 5lassical Account 5lassical account enables you to buy and sell shares throu,h our website/ :ou ,et (eatures like1 'nline tradin, account (or investin, in Equities and %erivatives via Share han/com Inte,ration o( 1 'nline tradin, P )ank P %emat account 73

Instant cash trans(er (acility a,ainst purchase and sale o( shares #ake I0' bookin,s :ou ,et Instant order and trade con(irmations by e3mail Streamin, quotes 0ersonali.ed #arket Scan with your own customi.ed stock triker Sin,le screen inter(ace (or cash and derivatives 0ort(olio tracker

$rade $i,er Account Earlier it was known as Speed $rade and now it is known $rade $i,er/ $his account is same as (ast trade account/ )ut, di((erence between these two accounts is that in the $rade $i,er Account the client can access unlimited scrips at a time and buy and sell the share (rom whenever they want/ $his account also provides the charts and ,raphs, so that the clients can easily understand about the stock o( the company/ $his is only (or bi, clients and dealer kind o( customers/ $his account is mainly (or active traders who trade (requently durin, the tradin, session/ ;eatures o( $rade $i,er Account1 A sin,le plat(orm (or multiple e2chan,e )SE and !SE, #5J, !5%EJ, #utual ;unds, I0's #ultiple #arket @atch available on Sin,le Screen #ultiple 5harts with $ick by $ick Intraday and End o( %ay 5hartin, powered with various studies &raph studies include Avera,e, )rand Q )ollin,er, now Sure $hin,, #A5%, RSI etc/

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Apply studies such as ?ertical, Hori.ontal, $rend, Retracement and (ree lines -ser can save his own de(ined screen as well as ,raph template that is, savin, the layout (or (uture use/

-ser Q de(ined alert settin,s on an input Stock 0rice tri,,er/

%ial3n3$rade ;eatures1 $wo dedicated numbers (or placin, orders with cell phone or landline/ $oll (ree number1 638GG3993BG7G/ Simple and Secure interactive voice response based system (or authentication/ !o waitin, time/ Enter the 0I! to be trans(erred to telebrokers

'((line Account $his is simple way to do tradin,/ In the o((line account, the client can place the order by telephone or throu,h personal visit in o((ice/ $he client who is very busy in their jobs orbusiness, they can directly place order by the telephone or the client who are not much busy4 they can come to the o((ice o( Share han/ Share han also provide the %ial3n3$rade service to their customers/ So that customers can directly place the order by the telephone/ 4emat Account 8penin! and .rokera!e :har!es $able !o/ =/61 ;ee structure (or &eneral Individual 5har,es Account 'penin, 5har,es 5lassical Account ` B7GH3 $rade $i,er Account ` 6GGGH3

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Intra3day1 G/6GN )rokera,e Annual #aintenance 5har,es %elivery 1 G/7GN ` !I" (irst year ` >GGHO p/a/ (rom second year onwards

Intra3day 1 G/6GN %elivery 1 G/7GN

;or Intra3day $rades $his is subject to a minimum brokera,e o( 7 paisa per share/ $his means that i( the share price you trade in `7GH3 or less, a minimum brokera,e o( 7 paisa per share will be char,ed/ ;or %elivery )ased $rades $his is subject to a minimum brokera,e o( 6G paisa per share/ #inimum brokera,e o( 6G paisa per share will be applicable when the share price is ` 9GH3 or less/ Share #obile Share han launches Share #obile, an e2clusive live streamin, quotes and tradin, (acility (or its online tradin, customers/ A person can carry stock market terminal with him anywhere anytime/ Share han brin,s a (reedom o( bein, mobile where it is so easy with share mobile to track (avorite stocks price movement tick3by3tick How Share #obile empowers "ive tick by tick stock price "atest news headlines $rack #y $rade 0ort(olio investment "ive Research ;undamental and $radin, 5alls 73

Share han %epository Services Share han %epository Services o((ers demateriali.ation services to individual and corporate investors/ Share han as a team o( pro(essionals and the latest technolo,ical e2pertise dedicated e2clusively to %emat department, apart (rom a national network o( (ranchisee, makin, the services quick, convenient and e((icient/ $radin, in 5ommodity ;utures It provides with (acility to trade in commodities *)ullion1 &old, silver and a,ricultural commodities+ throu,h a wholly owned subsidiary o( its 0arent SS I/ Share han is a member o( two 5ommodity E2chan,e and o((ers tradin, (acility at both these e2chan,es1 o #ulti 5ommodity E2chan,e o( India *#5J+ o !ational 5ommodity and %erivative E2chan,e, #umbai *!5%EJ+ Software 1/echnolo!y2 used in ShareKhan Share han is usin, di((erent technolo,y (or the runnin, o( their daily transactions/ #ainly (or the tradin,, the companies usin, three so(tware are1 '%I! *?SA$ )ased+ $rade $i,er *@E) )ased+ 5lassicH;ast $rade *@E) )ased+

And also !EA$ System used (or makin, transaction in !SE listed company and same way )'"$ System used (or makin, transaction )SE listed company/ ;or the client in(ormation or customer service, the company usin, 9 so(tware1 5IS Q 5lient In(ormation System )'5 Q )ack '((ice/

3ierarchy of ShareKhan
73

C-E-O

Country %ead

Cluster %ead

Regional %ead

.ranch %ead City Sales #anager

Dealer Sales E/ecutive

0-10

0-20

0-30

0-30

Trainee

;i, !o1 =/9

Mana!ement /eam
Mr, 4inesh Morakhia ; 8wner of the company $he Share han &roup o( 5ompanies was brou,ht to li(e by #r/ %inesh #urikya/ He ventured into stock tradin, with an intention to raise capital (or his own independent enterprise/ However, he reco,ni.ed the opportunity o((ered by the stock market to serve individual investors/ $hus, Indias (irst retail3(ocused stock3brokin, house was established in 6<97/ -nder his leadership,

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Share han became the (irst brokin, house to embrace new technolo,y (or (aster, more e((ective and a((ordable services to retail investors/ Mr, /arun Shah ; :hief ECecutive 8fficer A science ,raduate (rom St/ Javiers 5olle,e, #umbai and #r/ $arun Shah started his pro(essional li(e in sales and marketin, in a chemicals company/ His hands on approach and ri,orous e2perience in sales led him to hi,her challen,es that the capital markets provided/ In 6<8B, he joined SS I, a brokera,e (irm with over (ive decades o( le,endary service to its credit/ $he capital markets at that time was under,oin, a sea chan,e in its character and SS I under the vision and ,uidance o( Shripal #orakhia and the commitment and hardwork o( #r/ Shah was able to chan,e and adopt the new business practices to achieve si,ni(icant ,rowth in a competitive environment/ Acceptin, new challen,es is a way o( li(e (or #r/ $arun Shah/ $o ensure that SS Is (oray into retail stock brokin, throu,h Share han meets with the same success every other SS I venture has, #r/ $arun Shah moved in to spearhead this new e((ort as 5E' o( the Share han/ Mr, Shankar Eailaya ; 4irector 1operations2 of the company A ,raduate in commerce (rom the -niversity o( #an,alore and an Associate o( $he #ember o( the Institute o( 5hartered Accountants o( India, #r/ Shankar ?ailaya heads the operations, (inance and le,al (unctions/ He is responsible (or settlements, depository operations, risk and compliance and re,ulatory and other commitments and $reasury/ Shankar has mana,ed brokin, operations throu,h the most turbulent times o( the post securities scam period in 6<99 and has mana,ed to steer clear o( a (lurry o( bad papers in the market durin, 6<<>3<7/ Mr, 6aideep Arora ; 4irector 1Products G /echnolo!y2 of the company Iaideep Arora completed his )/$ech (rom II$ * anpur+ and his 0&%# (rom II# olkata/

Iaideep worked with I5I5I (or 8 years where his work spanned a ,amut o( (unctions, which included project (inance, equity sales and brokera,e, investments etc/ durin, his tenure there he

73

set up and headed the DInstitutional Equity )rokera,e %esk at I5I5I Securities and ;inance 5o/ "td/ Iaideep joined Share han in Iune 9GGG as Head o( 0roduct %evelopment/ A year later he took over the reins o( the business at Share han/ At present Iaideeps responsibilities include spearheadin, Share hans online (oray and overall customer acquisition e((ort/ 0athik &andotra Rishi ohli !ikhil ?ora 1 1 1 Head o( Research ?ice 0resident o( Equity %erivatives ?ice 0resident o( Research

#eason to :hoose ShareKhan Limited

ECperience SS I has more than ei,ht decades o( trust and credibility in the Indian stock market/ In the Asia #oney brokers poll held recently, SS I won the DIndias )est )rokin, House (or 9GG> award/ Ever since it launched Share han as its retail brokin, division in ;ebruary 9GGG, it has been providin, institutional level research and brokin, services to individual investors/ /echnolo!y @ith its online tradin, account one can buy and sell shares in an instant (rom any 05 with an internet connection/ 'ne can ,et access to its power(ul online tradin, tools that will help him take complete control over his investment in shares/

Accessi"ility Share han provides A%?I5E, E%-5A$I'!, $''"S and EJE5-$I'! services (or investors/ $hese services are accessible throu,h its centers across the country over the internet *throu,h the website www/sharekhan/com+ as well as over ?oice tool/ Knowled!e 73

In a business where the ri,ht time can translate into direct pro(its, one can ,et access to a wide ran,e o( in(ormation on Share han "imiteds content3rich portal/ 'ne can also ,et a use(ul set o( knowled,e3based tools that will empower him to take in(ormed decisions/ :onvenience 'ne can call its %ial3!3$rade number to ,et investment advice and e2ecute his transactions/ Share han ltd/ has a dedicated call3center to provide this service via a $oll ;ree !umber 68GG3 993B7GG L 68GG3993BG7G (rom anywhere in India/ :ustomer Service Share han "imiteds customer service team will assist one (or any help that one may require relatin, to transactions, billin,, demat and other queries/ Its customer service can be contacted via a toll3(ree number, email or live chat on www/sharekhan/com/ Investment Advice Share han has dedicated research teams o( more than =G people (or (undamental and technical researches/ Its analysts constantly track the pulse o( the market and provide timely investment advice to its clients in the (orm o( daily research emails, online chat, printed reports and S#S on their mobile phone/

S78/ A5ALBSIS 8- S3A#EK3A5

Stren!ths 'nline $radin, ;acility

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It is pioneer in online tradin, with turnover Rs/>GG corers and more than 8GG peoples workin, in the or,ani.ation/ "ar,est 5hain o( Retail Share Shops in India 88years o( E2perience in securities market %edicated and responsive work(orceHsta(( ?alue added service (or H!I client Research center Share han has dedicated research teams (or (undamental and technical research/ @hich constantly track the pulse o( the market and provide timely investment advice (ree o( cost to its clients which has a strike rate o( BG38GN #embership o( !SE L )SE $radin, option like ;uture L 'ption and 5ommodities ?olume based di((erentiated products

7eakness "ocali.ed presence due to insu((icient investments (or country wide e2pansion/ "ack o( awareness amon, customers because o( non3a,,ressive promotional strate,ies *print media, newspaper etc/+ "esser emphasis on customer retention ;ocuses more on H!Is than retail investors which results in mea,er market3share as compared to close competitors/ 0roblems due to network crash -nawareness amon, Investors 73

8pportunity @ith the boomin, capital market it can success(ully launch new services and raise its clients base It can easily tap the retail investors with small savin, throu,h promotional channels like print media, electronic media etc/ As interest on (i2ed deposits with post o((ice and banks are all time low, more and more small investors are enterin, into stock market/ Abolition o( lon, term capital ,ain ta2 on shares and reduction in short term capital ,ain is makin, stock market as hot destination (or investment amon, small investors/ Increasin, usa,e o( internet throu,h broadband connectivity may boost a whole new breed o( investors (or tradin, in securities/ /hreats A,,ressive promotional strate,ies by close competitors may hamper Share hans acceptance by new clients/ "ack o( su((icient branch3o((ices (or speedy delivery o( services/ 'ther players are providin, mar,in (unds to investors on easy terms where as there is no such (acility in Share han/ #ore and more players are venturin, into this domain which can (urther reduce the earnin,s o( Share han/

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I5EES/8#S PE#:EP/I85 /87A#4S I5EES/MEM/ I5 E@+I/B MA#KE/ $he money you earn is partly spent and the rest saved (or meetin, (uture e2penses/ Instead o( keepin, the savin,s idle you may like to use savin,s in order to ,et return on it in the (uture/ $his is called Investment/ 8ne needs to invest to$ Earn return on your idle resources &enerate a speci(ied sum o( money (or a speci(ic ,oal in li(e #ake a provision (or an uncertain (uture 'ne o( the important reasons why one needs to invest wisely is to meet the cost o( In(lation/ In(lation is the rate at which the cost o( livin, increases/ $he cost o( livin, is simply what it costs to buy the ,oods and services you need to live/ Investor An investor is any party that makes an investment An individual who commits money to investment products with the e2pectation o( (inancial return/ $he term has taken on a speci(ic meanin, in (inance to describe the particular types o( people and companies that re,ularly purchase equity or debt securities (or (inancial ,ain in e2chan,e (or (undin, an e2pandin, company/ Investors .ehavior

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&enerally, Investors )ehavior re,ardin, the any investment is primary concern with to minimi.e risk while ma2imi.in, return, as opposed to a speculator, who is willin, to accept a hi,her level o( risk in the hopes o( collectin, hi,her than avera,e pro(its/ @hile, some people are also believes in EHi,h Risk, Hi,h ReturnF many investors purchase a particular stock with the intention o( makin, a bi, pro(it over a short period o( time/ However, this action is not investin,, but a pure ,amblin,/ $he stock market is characteri.ed by the trade3o(( between risk and return/ $he hi,her the risk the investor is willin, and able to take, the hi,her the potential rewards (rom the investment/ $here(ore, i( a particular investment o((ers hi,h returns, it is an indication that it will come with a hi,h risk burden/ Some people are also believes in that there is no sa(e investment that will provide with hi,h returns over a short period o( time/ $here(ore, one should direct their resources toward lon,3term investment that are more likely to reward with hi,h returns/ Investors )ehavior re,ardin, the (inancial investment is closely related with the E)ehavioral EconomicsF and )ehavioral EconomicsF are closely related (ields makin, up a separate branch o( economic and (inancial analysis usin, social, co,nitive and emotional (actors in understandin, the economic decisions o( investment, and their e((ects on market prices, returns and the allocation o( resources/

Information of Equity Market and various sectors

7hat is Equity MarketF A market where in investors buys and sells securities providin, ownership o( a companys shares/ $he market in which shares are issued and traded, are either throu,h e2chan,es or over the counter markets/ Also known as the stock market, it is one o( the most vital arrears o( a market economy because it ,ives companies access to capital and investors a slice o( ownership in a company with the potential to reali.e ,ains based on its (uture per(ormance/

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Equity market, or stock market, is a system throu,h which company shares are traded/ $he equity market o((ers investors an opportunity to participate in a companys success throu,h an increase in its stock price/ @ith enhanced opportunity, however, the equity market usually carries ,reater risk than debt markets/

Indian Equity Market $he Indian Equity #arket is more popularly known as the Indian Stock #arket/ $he Indian equity market has become the third bi,,est a(ter 5hina and Hon, on, in the Asian re,ion/ Accordin, to the lar,est report by A%), it has a market capitali.ation o( nearly MCGG billion/ As o( #arch 9GG<, the market capitali.ation was around M7<8/= billion * ` =G/6= lakh core+ which is one3tenth o( the combined valuation o( the Asia re,ion/ $he market was slow since early 9GGB and continued till the (irst quarter o( 9GG</ $he Indian Equity #arket depends on three (actors3 ;undin, into equity (rom all over the world 5orporate houses per(ormance #onsoons

$he equity market is also a((ected throu,h trade inte,ration policy/ $he country has advanced both in (orei,n institutional investment *;II+ and trade inte,ration since 6<<7/ $his is a very attractive (ield (or makin, pro(it (or medium and lon, term investors, short3term swin, and position traders and very intra3day traders/ $he Indian market has 99 stock e2chan,es/ $he lar,er companies are enlisted with )SE and !SE/ $he smaller and medium companies are listed with '$5EI *'ver the 5ounter E2chan,e o( India+/ $he (unctions o( the Equity #arket in India are supervised by SE)I *Securities E2chan,e )oard o( India+/ 73

$he Indian Equity #arket was not well or,ani.ed or developed be(ore independence/ A(ter independence, new issues were supervised/ $he timin,, (loatation costs, pricin,, interest rates were strictly controlled by the 5ontroller o( 5apital Issue *5II+/

Introduction of Sectors
Meanin! of Sector $here are many companies or scrip that manu(acturer the same products and provide services are speci(ied under the particular name that called Industry or Sector/ $here are many other di((erent kinds o( industries, and o(ten or,ani.ed into di((erent classes or variety o( industrial classi(ication its sector/ In this Report, I have studied on ;ive Sectors which are1 8il and 9as Sector $he oil and ,as industry in recent years has been characteri.ed by risin, consumption o( oil products, declinin, crude production and low reverse accretion/ India remains one o( the least3 e2plored countries in the world, with a well density amon, the lowest in the world/ India is the (ourth lar,est oil consumption .one in Asia, even thou,h on a per capita basis the consumption is a mere G/6 tones, the lowest in the re,ion3 this makes the prospects o( the Indian 'il industry even more e2citin,/ $he oil and ,as industry has been instrumental in (uellin, the rapid ,rowth o( the Indian economy/ $he petroleum and natural ,as sector which includes transportation, re(inin, and marketin, o( petroleum products and ,as industry constitutes over 67 percent o( the &%0/ Indias domestic demand (or oil and ,as is on the rise/ As per the #inistry o( 0etroleum, demand (or oil and ,as is likely to increase which is 68C/7> million tons in 9GG83G</ India is emer,in, as the ,lobal hub (or oil re(inin, with capital costs lower by 97 to 7G percent over other Asian countries/ Already, the (i(th lar,est country in the world in terms o( re(inin, capacity, with share o( = percent o( the ,lobal capacity by >7percent or C7/= to 9>9 million tons per annum over the ne2t (ive years/

73

 .ankin! Sector )ankin, in India ori,inated in the last decades o( the 68th century/ $he oldest bank in e2istence in India is the State )ank o( India4 a ,overnment owned bank that traces its ori,ins back to Iune68 and that is the lar,est commercial bank in the country/ 5entral bankin, is the responsibility o( the Reserve )ank o( India, which in 6<=7 (ormally took over these responsibilities (rom the Imperial )ank o( India/ $he bankin, sector will navi,ate throu,h all the aspects o( the )ankin, System in India/ It will discuss upon the matters with the birth o( the bankin, concept in the country to new players addin, their names in the industry in comin, (ew years/ $he banker o( all banks, Reserve )ank o( India *R)I+, the Indian )anks Association *I)A+ and top 9G banks like I%)I, HS)5, I5I5I, etc/ @ith the Indian economy movin, on to a hi,h ,rowth trajectory, consumption levels soarin, and investment ridin, hi,h, the Indian bankin, sector is at a watershed/ ;urther, as Indian companies ,lobali.e and people o( Indian ori,in increase their investment in India, several Indian banks are pursuin, ,lobal strate,ies/ In the $hird Auarter Review o( #onetary 0olicy (or 9GG<36G, the R)I observed that the Indian economy showed a de,ree o( resilience as it recorded a better than e2pected ,rowth o( B/< percent durin, the second quarter o( 9GG<36G $he industry has been ,rowin, (aster than the real economy, resultin, in the ratio o( assets o( commercial banks to &%0 increasin, to <9/7percent durin, e2ceptionally well in the (inancial sector with the price to book value bein, second only to 5hina, accordin, to a report by *)5&+ )oston 5onsultancy &roup/ I/ Sector 'ver the past decade, the In(ormation $echnolo,y *I$+ industry has become one o( the (astest ,rowin, industries in India/ $he key se,ments that have contributed si,ni(icantly *<C percent o( total+ to the industrys e2ports include Q So(tware and services *I$ services+ and I$ Q enabled services *I$s+ i/e/ business services/ 'ver a period o( time, India has established itsel( as a

73

pre(erred ,lobal sourcin, base in these se,ments and they are e2pected to continue to (uel ,rowth in the (uture/ At present, India is emer,in, as one o( the popular So(tware outsourcin, locations to o((er cost e((ective so(tware solutions/ $he contribution o( India in So(tware 'utsourcin, is remarkable/ 'ne just cannot reject the reality that currently India is described as the most prosperin, name in so(tware outsourcin,/ !ow there are several ,rounds (or this (lourishin, popularity o( the o((shore I$ outsourcin, services o( India/ $he prime reason (or choosin, India, as an o((shore development partner in so(tware outsourcin, business is the availability o( enormous pool o( educated manpower combined with world3class quality o((erin,s/ Indias I$ ,rowth in the world is primarily dominated by I$ so(tware and services such as 5ustom Application %evelopment and #aintenance *5A%#+, System Inte,ration, I$ 5onsultin,, Application #ana,ement, So(tware testin,, and web services/ Indias domestic market has also become a (orce to reckon with, as the e2istin, I$ in(rastructure evolves both in terms o( technolo,y and depth o( penetration Infrastructure Sector In(rastructure is the basic physical and or,ani.ational structures needed (or the operation o( a society or enterprise, or the services and (acilities necessary (or an economy to (unction/ $he term typically re(ers to the technical structures that support a society, such as roads, water supply, sewers, power ,rids, and telecommunication/ Indias In(rastructure has been e2pandin, at an accelerated pace to support the economic ,rowth rate o( over < percent/ $he si2 core3in(rastructure industries, which account (or a combined wei,ht o( 9C/C8 percent in the inde2 o( industrial production *II0+, re,istered a ,rowth o( 8/C percent in 9GGC3GB as a,ainst C/9 percent durin, 9GG73GC/ $he ,rowth has continued space durin, the current (iscal, with the si2 core3in(rastructure industries ,rowin, at the rate o( C/< percent durin, April3September 9GGB/ Si,ni(icantly, electricity recorded a ,rowth rate o( B/C percent compared to C/B percent in the same period last year/ In(rastructure investment in India is set to ,row dramatically accelerated by 7/= percent in 9GG83 G</ India has become a major outbound investor and people are en,a,in, with Indians to seek 73

investment into their countries, said the #inister (or Road $ransport and Hi,hways, #r/

amal

!ath/ Accordin, to investment bankin, company &oldman Sachs, Indias in(rastructure sector will require -SM 6/B trillion investment in the ne2t 6G years/ It also added that such investment would come more (rom the domestic market than overseas/ Automo"ile Sector Automobile industry is one o( the (astest ,rowin, industries o( the world/ @ith more than 9 million new automobiles rollin, out each year, on roads o( India, the industry is set to ,row (urther/ Automobile industry made its silent entry in India in the nineteenth century/ Since the launch o( the (irst car in 68<B, India automobile industry has come a lon, way/ $oday India is the lar,est three wheeler market in the world and is e2pected to take over 5hina as the second lar,est automobile market, in the comin, years/ Some (acts on Automobile industry in India1 India has (ourth lar,est car market in the world/ India has the lar,est three wheeler market in the world/ India is the second lar,est producer o( two wheelers in the world India ranks (i(th in the production o( commercial vehicles

$he ,rowth o( the Indian middle class alon, with the ,rowth o( the economy over the past (ew years has attracted ,lobal auto majors to the Indian market/ #oreover, India provides trained manpower at competitive costs makin, India a (avored ,lobal manu(acturin, hub/ $he attractiveness o( the Indian markets on one hand and the sta,nation o( the auto sector in markets such as Europe, -S and Iapan on the other have resulted in shi(tin, o( new capacities and (low o( capital to the Indian automobile industry/ &lobal auto majors such as Iapanese auto majors Su.uki, Honda and orean car ,iant Hyundai

are increasin,ly bankin, on their Indian operations to add wei,ht to their businesses, even as numbers stay uncertain in developed markets due to economic recession and slowdown/ 73

Accordin, to (i,ures released by the Society o( Indian Automobile #anu(actures *SIA#+, domestic passen,er car sales have increased =9/98 percent to reach 6>7,<G7 units in Ianuary 9G6G, a,ainst BC8,C<8 units in the Ianuary 9G6G (rom 66G,=GG units in the same month last year/ Across all cate,ories, total sale o( vehicles increased >>/<> percent to 6,66>,67B units in Ianuary 9G6G, a,ainst BC8,C<8 units in the Ianuary 9GG</ $he Indian auto industry is likely to see a ,rowth o( 6G369 percent in sales in 9G6G, accordin, to a report by the ,lobal ratin, (irm/ Indian has become second lar,est maker o( small cars, overtakin, )ra.il/ Small cars (or 8G percent o( the domestic market *up (rom B7 percent last year+ and e2ports are ,rowin, at top speed/ Accordin, to SIA#, small car e2ports rise 7= percent between April and September 9GG< to 6<B,9>< units a,ainst 69<,G<G units a year a,o/ In order to make India a power to reckon with automotive sector the ,overnment launched the Automotive #ission 0lan *A0#+ 9GGC39G6C/ $he vision o( the A0# is E$o emer,e as the destination o( choice in the world (or desi,n and manu(acture o( automobiles and auto components with output reachin, a level o( -SM 6>7billion accountin, (or more than 6G percent o( the &%0 and providin, additional employment to 97million people by 9G6C/F As per the A#0, it is estimated that the total turnover o( the automotive industry in India would be in the order o( -SM 699 billion Q -SM 67< billion in 9G6C/ ;urther, by 9G6C, the automotive sector would double its contribution to the countrys &%0 (rom current levels o( (ive percent to 6G369 percent/ List of :ompanies under these -ive Sectors 8il and 9as Sector Indian 'il 5orporation '!&5 *'il and !atural &as 5orporation India+ Essar 'il "imited &as Authority o( India "imited 'il India "imited

73

India "0& 'il &as India

.ankin! Sector State )ank o( India I5I5I )ank A2is )ank H%;5 *Housin, %evelopment ;inancial 5orporation+ HS)5 I%)I )ank -nion )ank o( India 5entral )ank o( India

I/ Sector In(osys $5S "imited @ipro H5"

Infrastructure Sector %"; Reliance In(rastructure

73

H55 In(rastructure IR) In(rastructure

Automo"ile Sector Hero Honda )ajaj Auto $ata #otors #aruti Su.uki $?S #otors #ahindra #otors

4A/A A5ALBSIS A54 I5/E#P#E/A/I85

$able !o1 7/6 &ender wise classi(ication o( respondents

73

?ariable #ale ;emale $otal

!o o( Respondents B7 97 6GG

0ercent B7 97 6GG

;i, !o1 7/6 Interpretation ;rom the above table and chart, it is clear that B7 percent o( respondents are male and 97 percent are (emale/

$able !o1 7/9 A,e wise classi(ication ?ariable )e(ore 9G years 963=G years =63>G years >637G years !o o( Respondents !one 6G 67 9G 73 0ercenta,e !one 6G 67 9G

763CG years CG L Above $otal

=> 96 6GG

=> 96 6GG

;i, !o1 7/9 Interpretation 6G percent o( respondents are (rom 963=G years/ 67 percent o( respondents are (rom =63>G years/ 9G percent o( respondents are (rom >63 7G years/ => percent o( respondents are (rom 763CG years/ 96 percent o( respondents are (rom CG L above/

$able !o1 7/= $able showin, the occupation o( respondents ?ariable )usiness Service !o o( Respondents =G 97 73 0ercenta,e =G 97

Student Employee $otal

!one >7 6GG

!one >7 6GG

;i, !o1 7/= Interpretation =G percent o( respondents are into business whereas 97 percent are into service and >7 percent are employed/

$able !o1 7/> :early income o( the respondents ?ariable "ess than `6GGGGG `6GGGGG3`9GGGGG `9GGGGG3`=GGGGG `=GGGGG3`>GGGGG `>GGGGG3`7GGGGG Above `7GGGGG !o o( Respondents !one 6G =G 9G =7 7 73 0ercenta,e !one 9G =G 9G =7 7

$otal

6GG

6GG

;i, !o1 7/> Interpretation 6G percent o( the respondents belon,s to ` 6GGGGG3 ` 9GGGGG whereas, =G percent o( respondents belon,s to ` 9GGGGG 3 ` =GGGGG/ 9G percent o( the respondents belon,s to ` =GGGGG 3 ` >GGGGG whereas, =7 percent o( respondents belon,s to ` >GGGGG 3 ` 7GGGGG and 7 percent o( respondents belon, to above ` 7GGGGG/ $able !o1 7/7 Respondents investin, in equity market ?ariable :es !o $otal !o o( Respondents B7 97 6GG 0ercenta,e B7 97 6GG

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;i, !o1 7/7 Interpretation B7 percent o( investors are investin, in equity market whereas, 97 percent o( investors are not investin, in equity market/

$able !o1 7/C Investments which provides the best returns ?ariable Equity Shares I0' )onds #utual ;und ;i2ed %eposits $otal !o o( Respondents C= 8 6G B 9 6GG 0ercenta,e C= 8 6G B 9 6GG

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;i, !o1 7/C Interpretation It is cleared that C= percent o( investors opted equity market as the best returns compared to other investment options/ 8 percent o( investors have opted I0' as best returns whereas, 6G percent o( investors have opted )onds as best returns, B percent o( investors have opted #utual ;unds as best returns and 9 percent o( investors have opted (i2ed deposits as best returns/ $able !o1 7/B ;actors that motivates to invest in equity market ?ariable Return "iquidity Sa(ety 5apital Appreciation 'thers $otal !o o( Respondents >7 =G 7 67 7 6GG 0ercenta,e >7 =G 7 67 7 6GG

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;i, !o1 7/B Interpretation >7 percent o( investors are motivated by return to invest in equity market/ =G percent o( investors are motivated by liquidity to invest in equity market/ 7 percent o( investors are motivated by sa(ety to invest in equity market/ 67 percent o( investors are motivated by capital appreciation to invest in equity market @hile 7 percent o( investors are motivated by other (actors like Q investment, pro(it etc/ to invest in equity market/ $able !o1 7/8 0ercenta,e o( the respondents income to invest in equity market ?ariable "ess than 7 N 7N 3 6GN 6GN 3 67N 67N 3 9GN 9GN 3 97N #ore than 97N $otal !o o( Respondents 9= >7 6B B 7 = 6GG 73 0ercenta,e 9= >7 6B B 7 = 6GG

;i, !o1 7/8 Interpretation 9= percent o( the investors are investin, less than 7 percent o( their income in equity market/ >7 percent o( investors are investin, 7 percent to 6G percent o( their income in equity market/ 6B percent o( investors are investin, 6G percent to 67 percent o( their income in equity market/ B percent o( investors are investin, 67 percent to 9G percent o( their income in equity market/ 7 percent o( investors are investin, 9G percent to 97 percent o( their income in equity market/ = percent o( investors are investin, more than 97 percent o( their income in equity market/

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$able !o1 7/< $radin, in equity ?ariable Intraday %elivery Speculation Arbitra,e Hed,in, $otal !o o( Respondents 67 97 =G 6B 69 6GG 0ercenta,e 67 97 =G 6B 69 6GG

;i, !o1 7/< Interpretation Accordin, to this chart1 67 percent o( the investors are doin, intraday tradin, in equity market/ Intraday tradin, is tradin, (or that one day only/ #eans any securities that are purchase and sell within the day/ 73

97 percent o( the investors are investin, in equity market as a delivery base tradin,/ %elivery based tradin, is normally considered as a sa(er approach (or tradin, in shares when compared to day tradin,/ %elivery based tradin, involves buyin, shares on a market day and sellin, them a(ter receivin, the delivery o( those shares in demat account/

=G percent o( the investors are tradin, in equity market as a speculator/ Speculators are those classes o( investors who willin,ly take hi,her than avera,e risk in return (or a hi,her than avera,e pro(it potential in (uture/ A speculators aim primarily at quick pro(it (rom a short term acquisition o( assets/

6B percent o( investors are arbitra,e in equity market/ Arbitra,e means that purchases securities in one market (or immediate resale in another in the hope o( pro(itin, (rom the price di((erential/

69 percent o( investors are tradin, in equity market as hed,ers/ Hed,in, means reducin, or controllin, risk/ Hed,ers wish to eliminate or reduce the price risk to which they are already e2posed/

$able !o1 7/6G $he time hori.on (or investin, in equity market ?ariable "ess than 6 month 6 Q = months = Q C months C Q 69 months #ore than 69 months $otal !o o( Respondents 6> 98 67 68 97 6GG 0ercenta,e 6> 98 67 68 97 6GG

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;i, !o1 7/6G Interpretation 6> percent o( investors invest in equity market (or less than 6 month/ 98 percent o( investors invest in equity market (or the period o( 6 month to = months/ 67 percent o( investors time hori.on (or in equity market is = to C months/ 68 percent o( investors time hori.on (or in equity market is C to 69 months/ 97 percent o( investors invest in equity market (or more than 69 months/

$able !o1 7/66 $he rate o( return e2pected by the respondents ?ariable 7N 3 6GN 6GN 3 67N 67N 3 9GN 9GN 3 97N 97N 3 =GN !o o( Respondents 69 68 =9 9C 8 0ercenta,e 69 68 =9 9C 8

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$otal

6GG

6GG

;i, !o1 7/66 Interpretation 69 percent o( investors e2pect 7N 3 6GN return (rom equity market/ 68 percent o( investors e2pect 6GN Q 67N return (rom equity market/ =9 percent o( investors e2pect 67N 3 9GN return (rom equity market/ 9C percent o( investors e2pect 9GN 3 97N return (rom equity market/ 8 percent o( investors e2pect 97N 3 =GN return (rom equity market/

$able !o1 7/69 Investors satis(action with the current per(ormance o( the equity market in terms o( e2pected return/ ?ariable ;ully Satis(ied Satis(ied !o o( Respondents 6B >9 73 0ercenta,e 6B >9

!eutral -nsatis(ied ;ully unsatis(ied $otal

98 6G = 6GG

98 6G = 6GG

;i, !o1 7/69 Interpretation 6B percent o( investors are (ully satis(ied (rom the current per(ormance o( equity market/ >9 investors are satis(ied (rom equity market/ 98 percent o( investors are neutral with current per(ormance o( equity market/ 6G percent o( investors are unsatis(ied (rom equity market/ @hile 7 percent o( investors are (ully unsatis(ied (rom the equity market/

$able !o1 7/6= $he respondents who are in(luenced to enter the equity market ?ariable !o o( Respondents 73 0ercenta,e

;riends Relatives Advisers #edia Research report #a,a.ines $otal

=G 69 9C 6B 9C 7 6GG

=G 69 9C 6B 9C 7 6GG

;i, !o1 7/6=

Interpretation ;riends motivate =G percent o( the investors to enter into the equity market/ Relatives motivate 69 percent o( the investors to enter into the equity market/ 9C percent o( investors enter in equity market by the advice o( (inancial advisor/ #edia motivate 6B percent o( the investors to enter into the equity market/ Research report 6G percent o( the investors to enter into the equity market/

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7 percent o( investors are motivated by readin, ma,a.ines to enter into the equity market/

$able !o1 7/6> ;actor considered bein, the most important while selectin, the sector/ ?ariable #arket $rend 0ro(itability Economic 5ondition Industry 5ondition &overnment 0olicy $otal !o o( Respondent =C 98 6> 6C C 6GG 0ercenta,e =C 98 6> 6C C 6GG

;i, !o1 7/6> Interpretation =C percent o( the investors have considered market trend as most important (actor while selectin, the sector/

73

98 percent o( the investors have considered pro(itability as most important (actor while selectin, the sector/

6> percent o( the investors have considered economic condition as most important while selectin, the sector/

6C percent o( the investors have considered industry condition as most important while selectin, the sector/

C percent o( the investors have considered ,overnment policy as most important while selectin, the sector/

$able !o1 7/67 0re(erences o( the sectors Earia"les 8il and 9as Sector .ankin! Sector I/ Sector Infrastructure Sector Automo"ile Sector 5o of #espondents % *I 6G 97 67 C & < H 9G 69 6> H(6B 6G 6B J( 6G 8 68 96H* * C 7 8 H' 66 > 66 /otal 6GG 6GG 6GG 6GG 6GG

'n the basis o( the above table investors have ,iven 6st to 7th rank (or the (ollowin, sectors $able !o1 7/6C ?ariable !o o( Respondents 73 Rank

'il and &as I$ Sector )ankin, Sector Automobile In(rastructure

78 >G CG >7 ><

6st 9nd =rd >th 7th

Interpretation 'il and &as Sector 78 investors ,ave (irst rank, 9G investors ,ave second rank, 69 investors ,ave third rank, C investors ,ave (ourth rank and > investors ,ave (i(th rank to this sector/ Here, overall 78 investors have selected oil and ,as sector as (irst rank in comparison with (irst rank o( all sectors/

I$ Sector 97 investors ,ave (irst rank, >G investors ,ave second rank, 6B investors ,ave third rank, 6G investors ,ave (ourth rankand 8 investors ,ave (i(th rank to this sector/ Here, overall >G investors have selected I$ sector as second rank in comparison with second rank o( all sectors/ )ankin, Sector 6G investors ,ave (irst rank, 6> investors ,ave second rank, CG investors ,ave third rank, 7 investors ,ave (ourth rank and 66 investors ,ave (i(th rank/ Here, overall CG investors have selected bankin, sector as third rank in comparison with third rank o( all sectors/ Automobile Sector C investors ,ave (irst rank, 6B investors ,ave second rank, 96 investors ,ave third rank, >7 investors ,ave (ourth rank and 66 investors ,ave (i(th rank/ 73

Here, overall >7 investors have selected automobile sector as (ourth rank in comparison with (ourth rank o( all sectors/

In(rastructure Sector 67 investors ,ave (irst rank, 6G investors ,ave second rank, 8 investors ,ave third rank, 68 investors ,ave (ourth rank and >< investors ,ave (i(th rank/ Here, allover >< investors have selected in(rastructure sector as (i(th rank in comparison with (i(th rank o( all sectors/

$able !o1 7/6B 0re(erences based on the (actors (or selectin, a company Earia"le EPS 4ividend .rokers Advice Market capitaliAation Performance of :ompany PE #atio 5o of #espondents % 6G C 6G < 7 *H & HH 9G 9= 6C 6G 6= < 8 HJ 66 6G 8 > H 6C B = *( C 6G * J 9G 9 < HH 8 < 9 69 < B J& 6B /otal 6GG 6GG 6GG 6GG 6GG 6GG

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$able !o1 7/68 ?ariable 0E Ratio E0S %ividend #arket 5apitali.ation )rokers Advice 0er(ormance o( 5ompany !o o( Respondents 7> >> >C 7G >> C9 Rank 6st 9nd =rd >th 7th Cth

Interpretation 0E Ratio 7> investors ,ave (irst rank, 6= investors ,ave second rank, > investors ,ave third rank, 6G investors ,ave (ourth rank, 9 investors ,ave (i(th rank and 6B investors ,ave si2th rank/ Here, overall 7> investors have selected 0E Ratio as (irst rank in comparison with (irst rank o( all the (actors/ E0S 6G investors ,ave (irst rank, >> investors ,ave second rank, 8 investors ,ave third rank, 6C investors ,ave (ourth rank, 9G investors ,ave (i(th rank and 9 investors ,ave si2th rank/ Here, overall >> investors have selected E0S as second rank in comparison with second rank o( all the (actors/ %ividend C investors ,ave (irst rank, 9G investors ,ave second rank, >C investors ,ave third rank, B investors ,ave (ourth rank, < investors ,ave (i(th rank and 69 investors ,ave si2th rank/ Here, overall >C investors have selected dividend as third rank in comparison with third rank o( all the (actors/ 73

#arket 5apitali.ation < investors ,ave (irst rank, 6C investors ,ave second rank, 6G investors ,ave third rank, 7G investors ,ave (ourth rank, 8 investors ,ave (i(th rank and B investors ,ave si2th rank/ Here, overall 7G investors have selected market capitali.ation as (ourth rank in comparison with (ourth rank o( all the sectors/ )rokers Advice 6G investors ,ave (irst rank, 9= investors ,ave second rank whereas 66 investors ,ave third rank, = investors ,ave (ourth rank, >> investors ,ave (i(th rank and < investors ,ave si2th rank/ Here, overall >> investors have selected brokers advice as (i(th rank in comparison with (i(th rank o( all the sectors/

0er(ormance o( 5ompany 7 investors ,ave (irst rank, 6G investors ,ave second rank, 8 investors ,ave third rank, C investors ,ave (ourth rank, < investors ,ave (i(th rank and C9 investors ,ave si2th rank/ Here, overall C9 investors have selected per(ormance o( company as si2th rank in comparison with si2th rank o( all the sectors/

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-I554I59S A54 S+99ESS/I85S

;I!%I!&S B7 percent o( respondents are investin, in Equity #arket, while 97 percent o( investors are not investin, in Equity #arket as per sample si.e o( 6GG/ C= percent o( investors believe that Equity #arket is better investment option and will provide the best returns in compare to other investment/ >7 percent o( investors who are dealin, in equity market they are motivated by Return (actor and =G percent o( investors are motivated by "iquidity and some investor also consider 5apital Appreciation and Sa(ety (actor while investin, in equity market in various sectors/ >7 percent o( the investors are ready or interested to invest their 7N36GN o( income in equity market/ It means many investors trust on the ,rowth o( equity market as they are ready to spend major proportion o( their income/ ?ery (ew investors want to deal in Hed,in, tradin, which shows that they consider sa(ety (actors while investin,/ =G percent o( investors are tradin, in equity market as Speculator, means =G percent o( investors who willin,ly take hi,her3than3avera,e risk in return (or a hi,her3than3avera,e pro(it potential/ 98 percent o( investors invest in equity market (or the period o( 6 to = months and the same proportion o( investors are investin, (or lon, period more than a year/

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=9 percent o( investors e2pect 67N39GN return (rom equity market and 9C percent o( investors e2pect 9GN397N return (rom equity market/ Here, investors are more e2pects (rom equity market/

>9 percent o( investors are satis(ied with current per(ormance o( the equity market in terms o( e2pected return, while 98 percent o( investors are !eutral about equity market/

#ost o( the investors are motivated by their (riends to enter in the equity market and some investors are motivated by Advisers, #edia, Research Report and other (actors like and sel(3study o( current scenario o( equity market/

=C percent o( the investors have considered #arket $rend and 98 percent o( the investors have considered 0ro(itability as a most important (actor while selectin, the Sector/ $here are also other (actors like3 &overnment 0olicy, Industry 0olicy and Economic 5ondition are important (actor while selectin, the sector/

6> investors selected 'il and &as sector as a ;irst Rank *in comparison with ;irst Rank o( all sectors+ 9G investors have selected I$ sector as Second Rank 7= investors have selected )ankin, sector as $hird Rank 8 investors have selected Automobile sector as ;ourth Rank 7 investors have selected In(rastructure sector as ;i(th Rank

It is also (ound that 9C investors have selected 0rice Earnin,s Ratio as ;irst Rank in comparison o( selectin, the company o( their choice/ 6< investors have considered Earnin,s per Share as Second Rank 6B investors have selected %ividend as $hird Rank 6C investors have selected 0er(ormance o( 5ompany as ;ourth Rank 67 investors have selected )rokers Advice as ;i(th Rank 73

C investors have considered #arket 5apitali.ation as Si2th Rank

S-&&ES$I'!S ;or Investors $he investors should pre(er investment (or lon, term investment strate,y that provides moderate return with liquidity/ Investors should not invest in only equity market but also invest in other Sa(e Securities like3 ;i2ed %eposits, &overnment Securities, )onds #utual ;unds and Insurance etc/ which also provides moderate returns/ ;or e2ample1 'ne should pre(er Equity Q 7G percent 'ther Securities Q 7G percent 73

So, one can ,et moderate return with liquidity/ Investors should invest money at lower price and sell the stock at hi,her price/ Investors should select company on the basis o( 0E ratio, E0S, 5urrent &rowth o( 5ompany and #arket 5apitali.ation and many more/ So, investors can ,et hi,her return on their investment/ $hey should always invest e2tra money in stock market and should not invest by takin, loan (rom banks or other resources/ ;or 5ompany B7 percent are investin, in equity market, so more (ocus should be on 97 percent o( investors who are not investin, in equity market/ )rokin, (irms or companies should promote equity investment a,,ressively (or lon, term investment purpose/ #ajority o( investors are investin, in secondary market *equity market+ and very (ew investors are investin, in primary market/ So, here brokin, (irm should promote to their client (or investin, in primary market/ 5ompany should have to concentrate on those people who are not investin, in equity market because o( hi,h risk than covert them in investin, other security like3 #utual ;und, )onds and Insurance etc/ which also provides moderate return/ $he Stock )rokin, (irm should also provide better services to the investor to increase the satis(action level o( the investors/ 5ompany should (ocus on students also because equity market has risk and youn,er ,eneration likes to take risk/ #ajority investors are investin, in 'il and &as sector and I$ sector/ So, 5ompany should also su,,est to investors (or investin, other sector which is also pro(itable/

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:85:L+SI85
;rom the survey it is (ound that majority are investin, in equity market only due to hi,h return and hed,e the risk by investin, their major proportion o( income in equity market/ Here, most o( the people trade in equity market as a speculation and they invests (or one to three months/ &enerally, the investors who invest (or lon, period, that is, (or more than a year are surely bene(icial in equity market/ #ost o( the investors are motivated by their (riends and #edias advise to enter into equity market and are e2pectin, somethin, more (rom the equity 73

market/#ajority o( the investors pre(er the 'il and &as sector (or their investment as on the basis o( market trend, pro(itability, industry condition and economic condition while selectin, the sector and investors have also considered 0rice Earnin,s Ratio, Earnin, per Share and %ividend as the most important (actors while selectin, a company under these selected sectors/ Hence it is (ound that even thou,h most o( the investors are satis(ied with equity market, there are (ew who are not satis(ied with equity market yet/

.i"lio!raphy .ooks$
&ordon L !atrajan, E;inancial #arkets and ServicesF second revised edition reprint, Himalaya 0ublishin, House, 9GG7/ Investment #ana,ement3 ?/A/ A?A%HA!I 73

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@+ES/I855AI#E 85 I5EES/8#S0 PE#:EP/I85 /87A#4S I5EES/ME5/ I5 E@+I/B MA#KE/

I am aren Sylvia 0ais (inal year #)A student o( S%# 5olle,e o( post3,raduate center and research studies/ I am conductin, a project on investors perception towards investment in equity

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market/ $his project is taken as a partial requirement (or the completion o( my #)A de,ree under #an,alore -niversity/ I seek your kind assistance in completin, the questionnaire by takin, your valuable time/ $his in(ormation is purely (or an academic purpose and will be treated as hi,hly con(idential/ 6/ !ame1 9/ &ender1 #ale =/ A,e1 )elow 9G years >6 to 7G years >/ 'ccupation1 )usiness 7/ Income *yearly+ "ess than ` 6GGGGG ` 9GGGGG to ` =GGGGG ` >GGGGG to ` 7GGGGG C/ %o you invest in Equity #arketR :es !o ` 6GGGGG to ` 9GGGGG ` =GGGGG to ` >GGGGG Above ` 7GGGGG Student Service Employee 96 to =G years 76 to CG years =6 to >G years ;emale

Above CG years

B/ I( you want to invest, which investment option would you (eel provides the best returnsR Equity Shares )onds I0' ;i2ed %eposits #utual ;und

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8/ @hich (actors motivates you to invest in Equity #arketR Return 5apital Appreciation "iquidity Sa(ety

I( any other please speci(ySSSSSSSS/

</ @hat percenta,e o( your income would you invest in Equity #arketR "ess than 7N 67N 3 9GN 6G/ How do you trade in Equity #arketR Intraday Arbitra,ers %elivery Hed,in, Speculation 7N 3 6GN 9GN 3 97N 6GN 3 67N #ore than 97N

66/ @hat is the time hori.on (or investin, in Equity #arketR "ess than 6 month C Q 69 months 6 Q = months #ore than 69 months = Q C months

69/ @hat is the rate o( return e2pected by you (rom Equity #arket in a yearR 7N 3 6GN 9GN 3 97N 6GN 3 67N 97N 3 =GN 67N 3 9GN =GN above

6=/ Are you satis(ied with the current per(ormance o( the Equity #arket in terms o( e2pected returnR ;ully Satis(ied -nsatis(ied Satis(ied ;ully -nsatis(ied !eutral

6>/ @ho in(luenced you to enter into Equity #arketR ;riends Relative Advisers

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#edia

Research Report

#a,a.ines

67/ @hich (actor do you consider is most important while selectin, the sectorsR #arket $rend Industry 5ondition 0ro(itability &overnment 0olicy Economic 5ondition

6C/ Rank the (ollowin, sectors based on your pre(erence (or investmentR 'il and &as sector Automobile sector In(rastructure sector I$ sector )ankin, sector

6B/ Rank the most important (actor selectin, a company o( your choiceR Earnin,s per Share #arket 5apitali.ation %ividend 0er(ormance o( 5ompany )rokers 0E Ratio

68/ I( any su,,estion (rom your side, then please speci(ySSSSSSSSSSSSSS

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