Study of stock market along with factors affecting

stock marketvoltality and consumer behaviour

A PROJECT REPORT




Submitted by

Prachi Mundra
Batch 2013-2015



in partial fulfillment for the award of the degree

of

POST GRADUATE DIPLOMA IN MANAGEMENT



Under the Guidance of
Prof Jai Kotecha




THAKUR INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH
KANDIVILI
MUMBAI



CERICATE

This is to certify that this project report Study of stock market along with factors affecting
stock market voltality and consumer behaviour is a bonafide work of Prachi Mundra in part
completion of the POST GRADUATE DIPLOMA IN MANAGEMENT has been done under
my guidance. The project is in nature of original work that has been submitted for any degree of
this university.
References of work and relative sources of information have been given at the end of the project.


Signature or the candidate

Prachi Mundra


Forwarded through the research guide

Signature of the guide

PROF Jai Kotecha
Designation



ACKNOWLEGEMENT
This report bears the imprint of many people. Right from the experienced staff of Bonanza
portfolio ltd to the staff of without whose support and guidance I would have not got the unique
opportunity to successfully complete my internship in this esteemed organization.
I take this opportunity to express my deep gratitude to all the employees of, Bonanza portfolio
ltd. Also I am indebted for the rich guidance, knowledge and suggestions provided by my guide,
Mr. ManojJaiswal,Mr. Amit Tongiaand Mrs.Rinku Sharma who took sincere efforts and
illustrated the Concept of Equity Trading, with their vast knowledge in the field, which helped
me in carrying out my internship.
I also like to thank all those people whom I met in the industry during my internship and helped
me to accomplish my assignments in the most efficient and effective manner.


















Table of Contents
Chapter 1 Introduction ................................................................................................................... 4
1.1 General Introduction
1.2 Industry profile
1.3 Functions of stock market
1.4 Regulatory Frame work
Chapter 2 Introduction to Bonanza Portfolio ltd .......................................................................... 7
2.1 Introduction about company
2.2 Vision & Values
2.3 Achivements
2.4 Corporate Tie Ups

Chapter 3 Major Offerings in product and services ....................................................................9
Chapter 4 SWOT Analysis ..........................................................................................................15
Chapter 5 Competitors of Bonanza Portfolio ltd.16

Chapter 6Research Methodology......17
6.1 Analysis of the Factors affecting stock Market in May.17
6.2 Analysis of the Factors affecting stock Market in June25
Chapter 7 Study of Consumer Behaviour34
Chapter 8Suggestion ....................................................................................................................38
Chapter 9 Conclusion ..................................................................................................................39
Chapter 11 Bibliography .............................................................................................................40









Executive Summary
The Proj ect is about the study of stock market and the fact ors affecting stock
market and consumer behavior. Whether it s retiring earl y, savi ng for chil drens
education, payi ng off a loan or t o li ve a secured and satisfied life everyone has
dreams t hey can achi eve by i nvesting t hei r savi ngs. However, the questi on that
ari ses is that, should one l eave hi s money tucked away in the bank or plough it
into t he stock market where the pot enti al for hi gher ret urns i s greater but t he
chances of losi ng money is hi gher? Deciding where to i nvest depends on one`s
attit ude towards risk (one`s capacit y to take risk and one`s tol erance t owards
risk) and t he invest ment horizon and non-avail abili t y of guaranteed-ret urn
investment product s.
In such a scenario, investing in equit y, which offers ret urns that are
hi gher than the infl ation rat e, help to build wealt h and to impr ove the st andard
of living. It i s fi ne that stock market fl uct uat es over ti me. The risk involved
with i nvesti ng in equit y can be moderat ed by careful st ock sel ection and close
monitoring. Stock market is an avenue for growth of earnings. This project includes how
broking is being
done in stock market. It involves stock market analysis such as fluctuations in Sensex reasons for
fluctuations in stock market, fluctuations in stock market and reasons for the same. Stock market
has been the best avenue for investment in securities since last 10 years. Mostly future and
option trading was the worst trading in stock market in these sessions
I conduct ed a study on consumer awareness toward stock market and
Bonanza port foli o lt d. By anal yzi ng the dat a I get to know about the consumer
psychol ogy toward Bonanza port foli o ltd and investment pat tern.




















CHAPTER-1

INTRODUCTION

1.1 General Introduction
What is Stock Market
A stock market is a market for the trading of company stock, and derivatives of same
both of these are securities listed on a stock exchange as well as those only traded
privately.
1.2 Definitions of Stock Market
Where stocks and shares are bought and sold.
A general term used to refer to the organized trading of securities through various
exchanges and through the over-the-counter market. A "stock exchange" is a specific
form of a stock market, a physical location where stocks and bonds are bought and sold,
such as the Bombay Stock Exchange, NASDAQ or American Stock Exchange.

This market can be split into two main sections: the primary and secondary market. The
primary market is where new issues are first offered, with any subsequent trading going
on in the secondary market.
Primary market:
The primary market is where securities are created. It's in this market that firms sell (float) new
stocks and bonds to the public for the first time. For our purposes, you can think of the primary
market as being synonymous with an initial public offering (IPO). Simply put, an IPO occurs
when a private company sells stocks to the public for the first time.
The important thing to understand about the primary market is that securities are purchased
directly from an issuing company.
Secondary market:
The defining characteristic of the secondary market is that investors trade among themselves.
That is, in the secondary market, investors trade previously issued securities without the issuing
companies' involvement.








1.2INDUSTRY PROFILE
DEFINATION OF STOCK EXCHANGE:
Stock exchange is an organized market place where securities are traded. These securities
are issued by the government, semi-government bodies, public sector undertakings and
companies for borrowing funds and raising resources. Securities are defined as any
monetary claims (promissory notes or I.O.U) and also include shares, debentures, bonds and
etc., if these securities are marketable as in the case of the government stock, they are
transferable by endorsement and alike movable property.
Under the Securities Contract Regulation Act of 1956, securities trading is regulated
by the Central Government and such trading can take place only in stock exchanges
recognized by the government under this Act. As referred to earlier there are at present 23
such recognized stock exchanges in India. Of these, major stock exchanges, like Bombay
Stock Exchange National Stock Exchange,Inter-Connected Stock Exchange, Calcutta,
Delhi, Chennai, Hyderabad and Bangalore etc. are permanently recognized while a few are
temporarily recognized. The above act has also laid down that trading in approved contract
should be done through registered members of the exchange. As per the rules made under
the above act, trading in securities permitted to be traded would be in the normal trading
hours (09:15 A.M to 3.30 P.M) on working days in the trading ring, as specified for trading
purpose




















1.3 FUNCTIONS OF STOCK EXCHANGE
Maintain Active Trading: Shares are traded on the stock exchanges, enabling the
investors to buy and sell securities. The prices may vary from transaction to transaction. A
continuous trading increases the liquidity or marketability of the shares traded on the stock
exchanges.
Fixation of Prices: Price is determined by the transactions that flow from investors
demand and the suppliers preferences. Usually the traded prices are made known to the
public. This helps the investors to make the better decision.
Ensures safe and fair dealings: The rules, regulations and bylaws of the Stock
Exchanges provide a measure of safety to the investors. Transactions are conducted under
competitive conditions enabling the investors to get a fair deal.
Aids in financing the Industry: A continuous market for shares provides a favourable
climate for raising capital. The negotiability and transferability of the securities, investors
are willing to subscribe to the initial public offering (IPO). This stimulates the capital
formation.
Dissemination of Information: Stock Exchanges provide information through their
various publications. They publish the share prices traded on their basis along with the
volume traded. Directory of Corporate Information is useful for the investors assessment
regarding the corporate. Handouts, handbooks and pamphlets provide information
regarding the functioning of the Stock Exchanges.
Performance Inducer: The prices of stocks reflect the performance of the traded
companies. This makes the corporate more concerned with its public image and tries to
maintain good performance.
Self-regulating organization: The Stock Exchanges monitor the integrity of the members,
brokers, listed companies and clients. Continuous internal audit safeguards the investors
against unfair trade practices. It settles the disputes between member brokers, investors and
brokers.











1.4 REGULATORY FRAME WORK

This Securities Contract Regulation Act, 1956 and Securities and Exchange board of
India (SEB1) Act, 1992, provides a comprehensive legal framework. A 3-tier regulatory
structure comprising the ministry of finance, SEB1 and the Governing Boards of the Stock
Exchanges regulates the functioning of Stock Exchanges.
Ministry of finance: The Stock Exchange division of the Ministry of Finance has
powers related to the application of the provision of the SCR Act and licensing of dealers in
the other area. According to SEBI Act, The Ministry of Finance has the appellate and the
supervisory power over the SEBI. It has powered to grant recognition to the Stock Exchange
and regulation of their operations. Ministry of Finance has the power to approve the
appointments of executives chiefs and the nominations of the public representatives in the
government Boards of the Stock Exchanges. It has the responsibility of preventing
undesirable speculation.

VARIOUS STOCK EXCHANGES IN INDA:
List of Stock Exchanges in India
Bombay Stock Exchange
National Stock Exchange
Regional Stock Exchanges
Ahmedabad
Bangalore
Bhubaneshwar
Calcutta
Cochin
Coimbatore
Delhi
Guwahati
Hyderabad
Jaipur
Ludhiana
Madhya Pradesh
Madras
Magadh
Mangalore
Meerut
OTC Exchange Of India
Pune
Saurashtra Kutch
UttarPradesh
Vadodara

AMONG THESE STOCK EXCHANGES THERE ARE TWO IMPORTANT, THEY ARE:
1) NSE
2) BSE



















Chapter 2:Company Profile
2.1 INTRODUCTION ABOUT THE COMPANY
Bonanza is amongst the leading financial services and brokerage house working diligently
since 1994. The company can be described in a single word as a Financial Powerhouse.
With acknowledged industry leadership in execution and clearing services on exchange
traded derivatives and cash market product. Bonanza has spread its trustworthy tentacles
globally. Bonanza has spread his trustworthy trustworthy tentacles all over the country with
more than 1025outlets spread across 340 cities.
It provides an extension morgasbord of services in equity,commodities,currencyderivatives,
wealth management, distribution of third party products etc. Keeping in par with the modern
tech-savvy world , Bonanza makes an integrated and innovative use of technology; it also
enables its clients to trade online as well as offline and the strategictie-ups with
the latest technology partners has earned Bonanza this prestigious place in one of
the top brokerage houses in the country. Client -focused philosophy backed by
memberships of all principal Indian Stock and Commodity Exchanges makes
Bonanza s t and apar t f r om i t s compet i t or s and a pr ef er r ed s er vi ce pr ovi der
i n t he i ndus t r y f or val ue bas ed s er vi ces .
To add to our ever-growing achievements, a study by Dun and Bradstreet has rated
Bonanza as the 6th largest broking house in terms of equity terminal listings in the
country. If this is not enough, Bonanza Portfolio Ltd was recently nominated amongst the Top
3 Retail Financial Advisors of the country in an event conducted by CNBC-TV18and
OptiMix Financial Advisor Awards 2008. Also Bonanza has been awarded by BSE the "Major
Volume driver for the year 2004-2005, 2006-2007 and 2008-2009.









2.2 VISION AND VALUES :
Vision:
To be one of the most trusted and globally reputed financial distributor company.
Values:
Customer-centric approach: For the company, customer comes first. And there
satisfication is not there top priority but also there driving force for them, every single
day.
Transparency: Honesty is there forte. They believe on dealing thoroughly ethical
grounds, being fair and transparent with there customer.
Meritocracy: They recognize and appreciate put in by there employees. And they, as a
matter of fact, reward and distinguish each one of them, ceaselessly.

2.3 ACHIEVEMENTS:

1-Top Equity Broking House in terms of branch expansion for 2008
2-3rd in terms of Number of Trading Accounts for 2008.
3-6th in terms of trading terminals in for two consecutive years 2007- 2008.
4- 9t h i n t er ms of Sub Br oker s f or 2007
5-Awarded by BSE ' Major Volume Driver 04-05, 06-07, 07-08.
6- Nomi nat ed among t he Top 3 f or t he "Bes t Fi nanci al Advi s or Awar ds
' 08" i n t he cat egor y of National Distributors - Retail instituted by CNBC-TV18 and
OptiMix.

2.4 CORPORATE TIE UPS:

The company has Corporate Tie ups with Birla Sunlife ,Bajaj Allianz, ICICI
Prudential, SBI , Aviva , Kotak Mahindra and Reliance for Life Insurance and General
Insurance. In General Insurance, Bonanza provides Insurance for Motor, Health, Travel
Housekeeper, Shopkeeper, Marine, Personal and Group Insurance.







Chapter 3:Major Offerings in product and services
1. Prime Brokerage Services

Equity & Equity Derivatives: Bonanzas Trading Platform offers online equity & equity
derivative trading facilities for investors having access to resources like research charts,
advice, live quotes, online assistance to take well-versed decisions. Bonanza has been
felicitated as the leading volume driver by BSE, during FY 04-05,06-07,07-08.
Commodity & Currency Derivatives: The company offers access to future trading via
multiple exchanges in wide-ranging commodities like agricultural commodities, base
metals, energy and precious metals. It also provides investment opportunities in gulf
commodities futures and currency market.
Online Trading: Bonanza offers easier and secure online trading experience. Its online
trading portal enables trading across all exchanges and access to all services in a single
window. Bonanza Value and Bonanza Max are two of its unique and personalised
softwares that they use for online trading .Bonanza Value is a web interface that caters to
investors trading occasionally. It is a comprehensive trading module providing
fundamentals to trading, demos, quotes, demat& digital contracts, integrated banking,
instant transfer and price alerts. Bonanza Max is an EXE based desktop software
designed for traders who take advantage of short term price movements.
2. Asset Management
Portfolio Management Services (PMS): Bonanza has a dedicated and experienced team
of portfolio managers to design portfolios which suit every customers needs. Constantly
scrutinizing the developments in market and moving stocks, aiming for maximum
capitalization. Suggesting the most appropriate product to customers, based on factors
like their investment spheres, return expectation and risk tolerance our experience,
expertise and research helps us give our customers investments the best upshots.

Advisory: Bonanza guides and supports its clients to re-structure and streamline
their portfolios based on changing market conditions and client objectives.
3. Custody Services
Depository Services: Bonanza is a depository participant with NSDL and CSDL.
It also provides an array of depository services including demat operations.
4. Currency Futures:
Bonanza is amongst the few to offer currency futures trading. The company has installed
dedicated resources in terms of trained manpower and advisors to help and guide actual users
on hedging techniques and strategies.
5. Distribution
Mutual Funds: Bonanza is one of the largest distributors of mutual funds in India. It has
an in-depth research across categories covering 20 parameters guiding our clients to take
appropriate investment decisions. Keeping in mind customers budget, needs and
securities the AMFI certified investment advisors offer the best deals.
Insurance: Bonanza offers insurance products in Life and General Insurance. Our
IRDA certified advisors offer prudent advice on policy selection and assists through
the claim redressal process. Our advisory team matches the insurance products to
financial profiles of customers to offer the best solution options.
Initial Public Offer (IPO): It offers online investment access for public offerings.
We also offer In-depth research advice for the forthcoming IPOs.

6. Research
Bonanza Research desk has a dedicated team of research analysts and experts that have
anin-depth knowledge of the market place. They offer value perspectives, focus on
opportunities for investment and growth and endeavor to reduce risk potential. Its premium
advisory services are based on technical and fundamental views and strategies. Bonanza provides
a host of research reports from Daily reports, Monthly bulletins, Investment ideas, Newsletters
and much more. It covers more than 120 companies and eight sectors.

7. Technology & Connectivity
Bonanza has entered into strategic tie ups with companies that provide latest technological
support to facilitate trading access and direct processing activities which helps its clients to trade
either online or offline. Bonanzas trading platform is supported by Financial Technology and
Asian CERC Information. The back office support is provided by Apex SoftcellPvt Ltd.








Chapter4 :Swot Analysis:

Weakness
Inexperienced Staff
Low awareness due to lack
of advertisement.
Lack of loyal clientage
Developing product.
Strength
Co-operative and
Experienced Branch
Managers
Good Database
Reliance Brand
Low pricing
Opportunity
Untapped Market
Increased spending power
Changing Mindset of
Customers
Unpredictable Sensex
Threat
Reach
Stiff competition from
existing players in the
market
Better products









Chapter5: Competitors of Bonanza Portfolio ltd































Chapter6:ResearchMethodoly
Analysis on the factors affecting stock market as per weekly bases from 2
nd
May-30
th
June.
6.1 Analysis of the 2
nd
may

Analysis: As per the analysis, on this day the stock market was open at 22,493.59, it went upto
high at 22,575.62 and low at 22,386.95 whereas it was close at the end of the day at 22,403.89.

Reason:
World Bank's report highlighted that India has replaced Japan to become the world's
third biggest economy in terms of purchasing power parity (PPP).
Appreciation in Indian rupee too supported the sentiments with rupee rising to its
highest in more than a week on heavy dollar selling by exporters and corporates.
Some support came with an Assocham CEO survey of which around 50 per cent of
Indian CEOs said they are optimistic about the Indian economy, and expect it to be
stronger in the next six months.
Indian rupee, after a good start, ended substantially strong against dollar on Wednesday
on massive dollar selling by exporters and corporate.
The FIIs as per Wednesday's data were net buyers in equities and debt segments both.
In equity segment the gross buying was of Rs 3182.80 crore against gross selling of Rs
2427.90 crore, while in the debt segment the gross purchase was of Rs 641.10 crore
with gross sales of Rs 250.80 crore.





22,250.00
22,300.00
22,350.00
22,400.00
22,450.00
22,500.00
22,550.00
22,600.00
02-May-14
Open
High
Low
Close


Analysis of the 1
st
week of May (5
th
may-9
th
may)

Data of 1
st
week

Date Open High Low Close
5
th
May 2014 22,412.80 22,575.62 22,354.45 22,445.12
6
th
May 2014 22,512.23 22,592.03 22,475.65 22,508.42
7
th
May 2014 22,488.96 22,602.71 22,286.26 22,323.90
8
th
May 2014 22,382.14 22,532.82 22,277.04 22,344.04
9
th
May 2014 22,374.98 23,048.49 22,317.18 22,994.23






Analysis:According to the analysis of the 1
st
week the stock market was high on 7
th
May
2014 at 22,602.71 where as it was low on 8
th
May at 22,277.04. According to the
analysis we can say that the markets to extend the move to a positive mood with a
green start.








21800.00
22000.00
22200.00
22400.00
22600.00
22800.00
23000.00
23200.00
5/5/2014 5/6/2014 5/7/2014 5/8/2014 5/9/2014
Chart Title
Open High Low Close






Reason:

On the stating week of the day Indian equity benchmarks, snapping five days losing
streak, ended the session slightly in the green.
Indian rupee, extending its appreciating streak to third straight session, strengthened to
three week high against dollar on Friday despite lackluster local equities, which reversed
all the early gains to end flat.
Dollar selling by exporters, banks and increased capital inflows also aided the sentiment
of Indian currency. Thus it was not so encouraging news from India's factories,
manufacturing production showed no sign of acceleration last month as tepid demand
restrained output even as price pressures eased.
The current market rally has been building up on hopes that the BJP-led NDA alliance
emerging victorious in the Lok Sabha elections.
On 8
th
May Indian markets after two days of mild upmove, succumbed to profit booking
on Wednesday and the Nifty slipped to its 6 week low.
And on 9
th
May though, the benchmarks managed a green close but the day was marred
by rounds of volatility and major indices slipped into red for couple of times as investors
turned cautious ahead of election outcome next week.
























Analysis of the 2
nd
week of May (12
th
may-16
th
may)

Data of 2
nd
week

Date Open High Low Close
12
th
May 2014 23,031.11 23,572.88 23,008.65 23,551.00
13
th
May 2014 23,729.78 24,068.94 23,729.25 23,871.23
14
th
May 2014 23,8097.88 23,964.67 23,753.36 23,815.12
15
th
May 2014 23,809.42 23,971.78 23,742.75 23,905.60
16
th
May 2014 24,271.54 25,375.63 23,873.16 24,121.74







Analysis: According to the analysis of the 2
nd
week the stock market was high on 16
th

May 2014 at 25,375.63 where as it was low on 12
th
May at 3,008.65 . According to the
analysis market was high due to the election and winning if new party.








21500.00
22000.00
22500.00
23000.00
23500.00
24000.00
24500.00
25000.00
25500.00
12-May-14 13-May-14 14-May-14 15-May-14 16-May-14
Chart Title
Open High Low Close


Reason:
Markets showed a one way movement with not even an iota of profit booking seen
throughout the day and the bulls going berserk in the final hours ended only near the high
points of the day.
The upbeat mood was on account of splendid gains of positive local equities, which
vaulted to record highs, aiding the positive momentum of Indian currency.
Sentiments remained up-beat since beginning, as key bourses made a decent start and
there appeared not even an iota of profit booking in the session with benchmarks
fervently gaining strength to strength as investors continued hunt for fundamentally
strong stocks.
Indian rupee after appreciating to ten months high and cooling from thereof, ended flat on
Monday, ahead of the crucial exit polls, which most likely would show the opposition
Bharatiya Janata Party (BJP) winning a majority in the country's elections.
Dollar demand by state-run banks on speculated RBI's intervention and bit of caution
ahead of the crucial Consumer Price Inflation (CPI) data and Industrial Production (IIP)
data due later in the session, the latest one before the RBI's next monetary policy on June
3, mainly weighed on the sentiment of Indian currency, besides weak regional
counterparts. Central bank likely started to buy dollars starting at the day's low of 59.51,
its weakest level since July 29, to prevent the pair from weakening excessively on the
back of foreign fund inflows. Finally the rupee ended at 60.05, almost unchanged from its
previous close of 60.04 on Friday.
On 14
th
May, Indian equity markets scaled fresh all time closing high levels, as exit polls
predicted that the Modi-led NDA is set to cross the magic figure of 272 in the just-
concluded elections.
On 14
th
MayHectic buying activity in blue-chip stocks during the session too drove the
markets higher, with frontline gauges ending at their all time closing high levels of
23,850 (Sensex) and 7,100 (Nifty).
On 15
th
MaySentiment remained down beat with Organisation for Economic Cooperation
and Development (OECD) saying that India, China and other major emerging economies
are expected to see weak growth even as momentum remains stable in the developed
world.
And even, Indian money market remained closed on Wednesday on account of a local
holiday.
Key benchmark indices alternately swung between positive and negative terrain as
investors remained cautious ahead of final results of elections on May 16, while markets
seem to have more or less priced in the exit poll prediction of a majority for the BJP-led
National Democratic Alliance (NDA) in the Lok Sabha.
Indian rupee, ended quite stronger against dollar on Thursday, tailing the late surge of
local equities, a day ahead of election's result on May 16, amidst optimism that Bharatiya
Janata Party (BJP), led by NarendaModi, will emerge victorious along with its allies in
recent general elections. However, the currency's further gains were restricted on account
of RBI's speculated intervention, which could perhaps be the reason behind the local
currency not appreciating sub the psychological 59/dollar mark.




Analysis of the 3rd week of May (19
th
may-23
th
may)

Data of 3rd week

Date Open High Low Close
19
th
May 2014 24,340.32 24,448.47 24,107.99 24,363.05
20
th
May 2014 24,555.31 24,587.16 24,299.53 24,376.88
21
th
May 2014 24,404.48 24,419.54 24,156.47 24,298.02
22
nd
May 2014 24,415.42 24,524.76 24,326.48 24,374.40
23
rd
May 2014 24,535.14 24,745.86 24,470.78 24,693.35







Analysis: According to the analysis of the 3
rd
week the stock market was high on 23
th

May 2014 at 24745.86 where as it was low on 19
th
May at 24107.99 . According to the
analysis Indian equity benchmarks ended the session at their fresh record closing high
levels as the Bharatiya Janata Party and its allies swept the election, although markets
gave up a big chunk of the gains towards the close as investors booked profits at higher
levels.




23600.00
23800.00
24000.00
24200.00
24400.00
24600.00
24800.00
19-May-14 20-May-14 21-May-14 22-May-14 23-May-14
Chart Title
Open High Low Close




Reasons:

Boisterous benchmarks once again showcased an enthusiastic performance with investors
getting support from report that FII's made substantial purchases in Indian stocks on May
16, 2014. Though, markets after a gap-up opening pared all of their gains and entered into
negative terrain for a brief period as profit booking was witnessed at higher levels.
But, volatility ruled the roost as the key benchmark indices regained positive zone and
thereafter not even an iota of profit booking was witnessed in the session, as the
benchmarks managed to fervently gain from strength to strength as investors continued
hunt for fundamentally strong but oversold stocks.
Overall, sentiment remained upbeat, while some support also came after Industry body
CII expressed hopes that the economic reforms agenda can be taken forward with a stable
political dispensation and with a prudent macroeconomic management, the economy
could recover to 6.5 per cent GDP growth rate in 2014-15 as against an estimated 4.9 per
cent in 2013-14.
Sentiments also remained up-beat on report that foreign institutional investors (FIIs)
bought shares worth a net Rs 1350.04 crore on May 19, 2014, as per provisional data
from the stock exchanges.
Sentiments also got dampened after the Indian Institute of Tropical Meteorology's
(IITM) first experimental real-time monsoon forecast for this year predicted delayed
monsoon. However, bargain hunting in blue chip stocks helped markets to trim some of
their initial losses.
Some solace also came after National Council of Applied Economic Research (NCAER)
in its latest release said that the business confidence in last quarter of 2013-14 improved
further on expectations of a new electoral mandate that influenced the overall sentiments.




















Analysis of the 4
th
week of May (26
th
may-30
th
may)

Data of 4
th
week

Date Open High Low Close
26
th
May 2014 24,913.89 25,175.22 24433.90, 24,716.88
27
th
May 2014 24,748.10 24,777.31 24,422.33 24,549.51
28
th
May 2014 24,519.61 24,643.33 24,488.81 24,556.09
29
th
May 2014 24,523.13 24,528.20 24,206.50 24,234.15
30
th
May 2014 24,300.19 24,353.59 24,163.32 24,217.34




Analysis: According to the analysis of the 4
th
week the stock market was high on 26
th

May 2014 at 25175.22 where as it was low on 30
th
May at 24163.62. According to the
analysis Indian equity benchmarks ended the Friday's trade near their intraday high levels
with gain of over a percentage point.








23600.00
23800.00
24000.00
24200.00
24400.00
24600.00
24800.00
25000.00
25200.00
25400.00
26-May-14 27-May-14 28-May-14 29-May-14 30-May-14
Chart Title
Open High Low Close






Reasons:
There was broad based buying witnessed in the markets and apart from the blue chips, the
broader markets too equally participated in the rally. Though, some profit booking was
witnessed during the trade amid report that foreign institutional investors (FIIs) sold
shares worth a net Rs 294.99 crore on May 22, 2014, as per provisional data from the
stock exchanges.
On 27
th
May, after a gap-up opening, benchmarks fervently gained from strength to
strength to surpass their crucial 25,000 (Sensex) and 7,500 (Nifty) levels. Sentiments also
remained buoyed with a FICCI survey, which has said that 93 percent out of the 76 CEOs
covered by it, project a substantial improvement in the near-term economic situation with
the NarendraModi-led new government taking charge at the Centre.
Some support also came after an Assocham study indicated that riding on huge
expectations from the incoming Modi government, foreign investment inflows are
estimated to more than double to $60 billion level this fiscal.
However, immense volatility was witnessed in last leg of trade and markets took U-turn
with frontline gauges witnessing sharp selloff due to emergence of profit-booking in
realty, power, consumer durables and oil & gas counters. Though, domestic bourses
staged smart recovery to end flat after hitting fresh intraday low in dying hour of trade.
Sentiments also remained dampened on report that foreign institutional investors (FIIs)
sold shares worth a net Rs 84.13 crore on May 26, 2014, as per provisional data from the
stock exchanges.
Investors also remained cautious after Finance Ministry said that it has to be watchful of
the Current Account Deficit (CAD) as well as the rupee because global markets are still
volatile. However, markets managed to keep their head above water and eked out slender
gains, as investors continued to buy beaten down but fundamentally strong stocks after
previous session's drubbing.
Additionally, cautiousness ahead of the release of Q4 GDP numbers, RBI's monetary
policy review on June 3 and measures to be taken by the NarendraModi-led government
to bring down the fiscal deficit and fight inflation, also weighed on the sentiment.















6.2 Analysis of the 1
st
week of June (2
nd
June-6
th
June)

Data of 1
st
week

Date Open High Low Close
2
nd
June 2014 24,368.96 24,709.09 24,270.20 24,684.89
3
rd
June 2014 24,729.22 24,892.06 24,626.97 24,858.59
4
th
June 2014 24,909.03 24,925.90 24,773.93 24,805.83
5
th
June2014 24,828.38 25,044.06 24,644.88 25,019.51
6
th
June 2014 24,204.95 25419.14 25,129.76 25,396.46







Analysis: According to the analysis of the 1st week the stock market was high on 6
th

June2014 at 25419.14 where it was as low on 2
nd
June at 24270.20. According to the
analysis in this week markets was cautious but has a positive start ahead due to RBI
policy.




23600.00
23800.00
24000.00
24200.00
24400.00
24600.00
24800.00
25000.00
25200.00
25400.00
25600.00
2-Jun-14 3-Jun-14 4-Jun-14 5-Jun-14 6-Jun-14
Chart Title
Open High Low Close



Reasons:

Investors were also eying RBI policy review next week, wherein RaghuramRajan is most
likely to keep monetary policy rates steady, given continued concerns about inflation.
Reserve Bank of India (RBI) Governor RaghuramRajan said he expected to join hands
with the country's new government to bring down dangerously high inflation. Rajan,
speaking at a seminar in Tokyo, said the new government's plan to curb food inflation
seems sensible and that he expects the public's inflation expectations to fall in the future.
Sentiments got bolstered after manufacturing activity inched up in May compared to the
previous month, according to the widely-tracked HSBC Purchasing Managers' Index
(PMI). The index for manufacturing rose marginally to 51.4 points in May from 51.3
points in April.
Sentiments also remained up-beat on reports that foreign institutional investors (FIIs)
bought shares worth a net Rs 2,977.62 crore on May 30, 2014, as per provisional data
from the stock exchanges.
Shares of insurance business related companies too will remain firm on expectations that
the parents would gain from the relaxation of foreign direct investment (FDI) limits.
On 4
th
June Indian equity benchmarks ended the volatile day of trade at all time closing
high levels with domestic bourses surpassing their crucial 24,850 (Sensex) and
7,400(Nifty).
Sentiments remained up-beat after the central bank kept rates on hold and toned down its
inflation rhetoric.
Sentiment was also supported after the RBI eased rules to spur bank lending. Meanwhile,
Finance Minister ArunJaitley described the RBI's status quo policy as a calibrated
approach to strike a balance between growth and inflation. Today, the start is likely to
remain positive but traders will continue to be cautious ahead of global developments.
Sentiments got bolstered after the India Meteorological Department (IMD) has forecasted
that conditions are favourable for the onset of the southwest monsoon over Kerala and its
further advance into some more parts of south Arabian Sea, remaining parts of Maldives-
Comorin area, some parts of Tamil Nadu and the Bay of Bengal during the next 48 hours.
The Prime Minister, NarendraModi met the Secretaries of all government departments to
outline his agenda of governance and in a positive step he said that the Government's
priority is to revamp the economy and asked the officials to prepare presentations on the
contributions their Ministries can make to the revival. In a separate development, industry
body Confederation of Indian Industry (CII) has called for a comprehensive review of the
new Companies Act 2013 and the rules issued there under.
In a pre-Budget consultation with agriculturists Finance Minister ArunJaitley has assured
them that despite resource constraints, the Government would try its best to boost the
sector. Sugar stocks are likely to remain in limelight after the government said that it was
examining the possibility of giving additional interest-free loans of Rs 4,400 crore to
cash-starved sugar mills to clear dues to cane farmers.




Analysis of the 2
nd
week of June (9
th
June-13
th
June)

Data of 2
nd
week

Date Open High Low Close
9
th
June 2014 25,543.60 25,644.77 25496.84 25,580.21
10
th
June 2014 25,706.39 25771.11 25347.33 25583.69
11
th
June 2014 25,650.62 25735.87 25365.65 25473.89
12
th
June2014 25,597.21 25611.32 25409.69 25876.21
13
th
June 2014 25677.05 25688.31 25171.61 25228.17






Analysis: According to the analysis of the 2
nd
week the stock market was high on 11
th

June 2014 at 25735.87 where as it was low on 13
nd
June at25171.61. According to the
Analysis the market was cautious due to the monsoon concern.








24800.00
24900.00
25000.00
25100.00
25200.00
25300.00
25400.00
25500.00
25600.00
25700.00
25800.00
9-Jun-14 10-Jun-14 11-Jun-14 12-Jun-14 13-Jun-14
Chart Title
Open High Low Close



Reasons:
Macroeconomic data, progress of monsoon rains and global cues are likely to dictate
trend on the domestic bourses throughout the week. Market men will be getting some
comfort with Minister of Commerce NirmalaSitharaman's statement that the rising
Current Account Deficit (CAD) and galloping prices are the issues which will be tackled
on an urgent basis by the government and Finance Minister will announce important
measures to reduce the CAD and curb rising prices. However, there will be some concern
too, as the foreign direct investment in the services sector declined by about 54 per cent
year-on-year to $2.22 billion last fiscal.
On 10
th
June the frontline indices snapping the session above their psychological 25,550
(Sensex) and 7,650 (Nifty) levels, ending at fresh all time closing high levels on firm
global cues coupled with hopes of wide-ranging reforms by the new government.
Some support also came after President Pranab Mukherjee in a joint session of
parliament said that the new government will pursue a broad economic reform agenda
focused on job creation through public and private investment that also makes containing
inflation its top priority.
Some comfort also came from Minister of Commerce NirmalaSitharaman's statement
that the rising Current Account Deficit (CAD) and galloping prices are the issues which
will be tackled on an urgent basis by the government and Finance Minister will
announce important measures to reduce the CAD and curb rising prices.
Some comfort also came after Society of Indian Automobile Manufacturers (SIAM)
reported that domestic passenger car sales grew by 3.08% to 1,48,577 units last month as
compared with 1,44,132 units in May 2013. Moreover, total two-wheeler sales during
the month grew by 16.3% to 14,02,830 units from 12,06,173 units in the same period of
the previous year.
Traders will be keeping a watch on major economic data of industrial production (IIP)
and consumer inflation (CPI) to be announced after the market hours. While, the IIP
probably rose in April to around 2 per cent from 0.5 per cent recorded in the month of
March, the Consumer inflation has been averaging nearly 10 percent for the past two
years and the street is expecting a marginal ease in May from 8.59 per cent recorded in
April.
There will be some action in mining stocks after a report released by Reserve Bank of
India (RBI) stated that the mining sector experienced a marked fall in output growth rate
in the 2000s, which is traceable to incremental domestic demand for crude oil being met
from imports rather than domestic production. Meanwhile, the sugar stocks too may keep
buzzing after a report that the Commerce Ministry is not looking at hiking import duty on
sugar as it has not yet received any proposal in this regard.
Overall, sentiments remained optimistic on report where IMF stated that increasing
investment over the past few months is providing impetus to Indian economy and
potential growth rate could go up over time.







Analysis of the 3
rd
week of June (16
th
June-20
th
June)

Data of 3
rd
week

Date Open High Low Close
16
th
June 2014 25239.50 25268.41 25063.93 25109.48
17
th
June 2014 25189.46 25545.88 25104.50 25521.19
18
th
June 2014 25565.19 25609.28 25114.30 25246.25
19
th
June2014 25327.09 25425.85 25096.66 25201.80
20
th
June 2014 25237.54 25276.31 25056.18 25105.51






Analysis: According to the analysis of the 3
rd
week the stock market was high on 18
th

June 2014 at 25609.28 where as it was low on 16
th
June at25063.93. According to the
Analysis the market remain caution due to the flat start.







24700.00
24800.00
24900.00
25000.00
25100.00
25200.00
25300.00
25400.00
25500.00
25600.00
25700.00
16-Jun-14 17-Jun-14 18-Jun-14 19-Jun-14 20-Jun-14
Chart Title
Open High Low Close




Reasons:
Some support also came from meteorologists statement that it is too early to be worried
about a below normal monsoon because monsoon showers could pick up in the coming
weeks. However, reversal of trend which took place in second half of trade due to global
concerns mainly weighed down sentiments.
Some consolidation can be expected in the latter part of the trade with investors taking
cues from Prime Minister NarendraModi's remark over weekend that "bitter medicine"
might be needed to rescue the economy and restore its fiscal health.
Finance Minister ArunJaitley too has reiterated that fiscal disciplining is required to put
the economy of the country back on tracks as India has witnessed two successive years
of sub-five percent growth.
PSU stocks too may see some action as the government may raise the dividend receipt
target from state-run firms and link it with their ability to achieve capital expenditure
plan. Power stocks too may show some action as the industry body Assocham has said
that the Centre needs to adopt measures to ensure that grid discipline is maintained and
states over-drawing power from the transmission lines are penalized.
Overall, sentiments remained dampened after the annual rate of inflation, based on
monthly WPI, came in at highest level since December 2013, at 6.01% for month of May
2014, as compared to 5.20% in April and 4.58% during corresponding month in the
previous year, driven by costlier protein-based items, fuel and some manufactured
products.
Report that foreign portfolio investors (FPIs) sold shares worth a net Rs 194.10 crore on
June 16, 2014, too weighed down sentiments. However, sentiments took U-turn in last
hour of trade as market-participants opted to take positions in beaten down but
fundamentally strong stocks.
On 19
th
June the Indian markets lost their way completely in last session and suffered
sharp profit booking in second half after surging to their record highs. The start is likely
to be in green taking cues from the global markets and bourses may cover some of their
damages with Nifty reclaiming its 7600 levels in early trade.
Sentiments were weighed down as investors remained concerned over Iraqi turmoil.
Earlier, markets made a positive start supported by report that foreign portfolio investors
(FPIs) bought shares worth a net Rs 48.02 crore on June 17, 2014, as per provisional data
from the stock exchanges.
There will be some comfort with Petroleum Minister Dharmendra Pradhan's statement
that fuel supplies will not be impacted by the conflict in Iraq, nation's second largest
crude oil supplier. He has said that crude supplies to India from Iraq come from the Basra
oilfields which are situated well away from the conflict zone in the north-eastern part of
Iraq and loading of ships continues normally.








Analysis of the 4
th
week of June (23
rd
June-27
th
June)

Data of 4
th
week

Date Open High Low Close
23
rd
June 2014 25108.09 25197.10 24878.06 25031.32
24
th
June 2014 25115.83 25414.69 25115.83 25368.90
25
th
June 2014 25412.49 25427.80 25274.39 25313.74
26
th
June2014 25217.69 25309.33 25021.23 25062.67
27
th
June 2014 25132.08 25209.61 25032.94 25099.92







Analysis: According to the analysis of the 4
th
week the stock market was high on 25
th

June 2014 at 25427.80 where as it was low on 23
rd
June at24878.66. According to the
Analysis the market was cautious but there was positive start due to the F&O expiry
Week start.





24600.00
24700.00
24800.00
24900.00
25000.00
25100.00
25200.00
25300.00
25400.00
25500.00
23-Jun-14 24-Jun-14 25-Jun-14 26-Jun-14 27-Jun-14
Chart Title
Open High Low Close




Reasons:
The Indian markets slipped further in last session amid brewing Iraq crisis.
The start of the F&O expiry week is likely to remain cautious but modestly green start
can be expected taking cues from regional counterparts, though movement in crude oil
prices linked to the Iraq unrest and the progress of monsoon will set the tone this week.
Government has set deadlines for inter-ministerial consultation on Cabinet and Cabinet
Committee notes, in order to expedite the decision making process. The Reserve Bank of
India has released timelines for regulatory approvals and a citizens' charter for delivery of
services as part of implementation of the non-legislative recommendations of the
Financial Sector Legislative Reforms Commission (FSLRC).
Textile stocks too will be in action as Union Textiles Minister Santosh Kumar Gangwar
has said that textile exports are set to touch $50-billion mark in the current fiscal.
The start of the penultimate day of the F&O expiry is likely to be a bit somber and the
markets may give up some of their gains on weak global cues. There will be some
cautiousness with the United Nations Conference on Trade and Development (UNCTAD)
in its latest World Investment Report saying that India's macroeconomic uncertainties
remain a major concern for investors even as the country saw a 17% increase in foreign
direct investment (FDI) to $28 billion in 2013.
There will be some action in the power sector stocks, as a World Bank study has termed
distribution utilities as the weakest link of the Indian power sector, and recommended
expanding their accountability and freeing up regulators from external interference to
make the sector attractive to investors.
Traders will be getting some support with the Reserve Bank of India (RBI) stating that
prospects of economic recovery in India look bright following the formation of a stable
government, though supply side issues need to be solved to help monetary policy bring
down inflation.
The banking stocks are likely to come under pressure as a bi-annual Financial Stability
Report of RBI has said that risks to the stability of Indian banks have increased in the six
months ended 30 March as asset quality stress remains high and lenders are weighed
down by the slow pace of economic expansion and high inflation. On the same time
companies related to defence supply may get a boost as licensed items list has been
reduced by 60%.















Analysis of 30
th
June




Analysis: As per the analysis, on this day the stock market was open at 25,179.55, it went upto
high at 25,460.96 and low at 25,175.59 whereas it was close at the end of the day at 25400.

Reasons:
Key domestic benchmarks managed to keep their head above water on Friday with nifty
recapturing its crucial 7,500 mark, while Sensex ended tad below its crucial 25,100 mark
as investors opted to buy beaten down but fundamentally strong stocks, after two sessions
of drubbing.
Overall, sentiments remained up-beat after Reserve Bank of India (RBI) stated that
prospects of economic recovery in India look bright following the formation of a stable
government, though supply side issues need to be solved to help monetary policy bring
down inflation.
Meanwhile, amid weakening monsoon, Prime Minister NarendraModi has asked for close
coordination between the centre and states on implementing contingency plans to tackle
the situation and prevent rise in food prices.
Indian rupee gained slightly on Friday and snapped the four week losing streak, as
continued foreign fund inflows into debt and equity markets helped offset the month end
dollar demand from importers. Also, there were broad gains in the regional currencies
after weak US economic data cemented views that the Federal Reserve may keep interest
rates low.






25,000.00
25,100.00
25,200.00
25,300.00
25,400.00
25,500.00
30-Jun-14
Open
High
Low
Close

Chapter 7 :Study of Consumer Behaviour and its Analysis

1. Awareness on Online Share Trading







Interpretation: With the increase in cyber education, the awareness towards online share trading
has increased by leaps and bounds. This awareness is expected to increase further with the
increase in Internet education.
2.Have you Heard About Bonanza Portfolio ltd

Interpretation: Out of the total sample size surveyed, BONANZA has its slice of share, as it is
familiar and popular among 62% of the total sample population. Hence is less familiar among the
investor.


Result of Awareness of Online Share Trading
3.Which brokerage firm do you prefer for online trading?

Interpretation: This question was framed to understand the effectiveness of Bonanza
among its competitors. The push and pull factor worked out well for Bonanza as it
grabbed 26% of the market share.
4. How often do you trade?


Interpretation: This shows that how stock market have swept the nation as a
whole. Most of the investors prefer daily and weekly trading to keep a watch on
the volatility of the stock market so as to take decision accordingly.

18%
26%
22%
27%
7%
Effectiveness of bonanza among it's competitors.
ICICI Direct
Bonanza
Indiabulls
Anandrathi
HDFC Securities
51%
30%
13%
7%
Duration of trade
Daily
Weekly
Monthly
Yearly

5.What percentage of your earning do you invest in share trading?

Interpretation: About 70% of respondents feel that not more than 25% of there
earnings will be pushed into the market that clearly signifies that how volatility in the
stock market can influence the investors.












39%
34%
14%
13%
Investment of earnings in share market
Upto 10%
Upto 25%
Upto 50%
Above 50%



Suggestion
Company should invest more in its marketing strategies by giving ads in
newspapers, magazines, TV commercials etc.
The Account opening time taken is about 7 working days. Improving logistics
should reduce this.
The account opening charges should also be reduced to attract customers.
Customer care is not its best at Bonanza. Prompt customer handling should
improve this.
Some of the customers do not get the service promised to them. There should be a
check on the promises made.
Form should be simplified.
There should be more awareness made about the portfolio management services by
givingmore advertisement.
The bonanza PMS should go for tie-ups with the corporate to increase business.
Bonanza portfolio limited should organize some events to build its Brand Image in the
mindsof the people towards PMS.
As per customers point of view, they feel that bonanza portfolio limited should open
morenumber of branches for the convenience of peo.
























Conclusion:

Indian economy has been globalize and the capital market has been linked to the
international financial market. Foreign individuals and institutional investors are now
encouraged to participate into it. So, there is a need for raising the Indian Capital market
in to the international standards in terms of efficiency and transparency. One such
measure is the passing out of the Depository Act during the year 1996. Dematerialization
of securities and under this system is one of the major steps aimed at improving and
modernizing the capital market and enhancing the levels of investors protection
measures which aims at eliminating the bad deliveries and forgery of shares and
expediting the transfer of shares.
Online trading is the new concept in the stock market. In India, online trading is
still at its infancy stage. Online trading has made it easy to trade in the stock
market as now people can trade while sitting at their home. Now stock market is
easily accessible by the people. There are some problems while doing the trade
through the internet. Major problem faced by online trader is that the investors
are loyal to their traditional brokers, they rely upon the suggestions given by their
brokers. Another major problem is that the people don't have full knowledge
regarding online trading. They find it difficult to trade themselves, as a wrong
entry made by them, can bring them huge losses.
Thus online share trading is gaining its popularity. Though it still has to go a long way
but it has established its foothold in the metropolitan cities like Delhi, Mumbai etc. The
dematerializing of shares coupled with the huge growth of Internet has been the fuel for
the online trading which is now a considerable part of the total trading.
It can therefore be said that online share trading is here to stay and will only grow to
bigger proportions and will penetrate deeper into the economy. So online trading would
become the order of the day, taking over the traditional norms in the years to come.

LIMITATIONS
Usual sampling errors may exist.
Some of the customers may be uninterested and may not have replied correctly.
Respondent may also be biased due to several reasons.
Sample size was small which may affect the reliability of the result.
Internet fraud.
Still many of Indian customer do not know to use Internet.









BIBLIOGRAPHY
www.sebi.com
www.google.com
www.scribd.com