Escolar Documentos
Profissional Documentos
Cultura Documentos
ON
CONSUMER BEHAVIOUR
AT
KARVY STOCK BROKING
SUBMITTED TO
UTTARAKHAND TECHNICAL UNIVERSITY
REQUIRED IN PARTIAL FULLFILLMENT FOR THE
DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
(202015-2011)
EXTERNAL GUIDE
(INTERNAL GUIDE)
SUBMITTED BY
NEERAJ SHARMA
1
MBA-3rd Sem
(BEEHIVE COLLEGE OF)
(MANAGEMENT & TECHNOLOGY)
(DEHRADUN)
Executive Summary
Never invest in any idea you can't illustrate with a crayon. ~Peter Lynch
As the above famous quote rightly says, Investment or investing is a choice by an individual or
an organization, after at least some careful analysis or thought, to place or lend money in a
vehicle (e.g. property, stock securities, bonds) that has sufficiently low risk and provides the
possibility of generating returns over a period of time. This choice or Investment decision has to
be made carefully as an incorrect decision can result in loss of capital. The term "investment" is
used differently in economics and in finance. Economists refer to a real investment (such as a
machine or a house), while financial economists refer to a financial asset, such as money that is
put into a bank or the market, which may then be used to buy a real asset. Depending upon the
type of investment, there are various tools for supporting the investment decision. This project
deals with investment in stocks or securities. For making an investment decision in stocks, there
are broadly two kind of analysis Fundamental & Technical. Fundamental analysis focuses on
what ought to happen in a market while the latter focuses on what actually happen in a market.
COMPANY PROFILE
Welcome to Karvy Stock Broking
KARVY Stock Broking Limited, one of the cornerstones of the KARVY edifice, flows freely
towards attaining diverse goals of the customer through varied services. It creates a plethora of
opportunities for the customer by opening up investment vistas backed by research-based
advisory services. Here, growth knows no limits and success recognizes no boundaries. Helping
the customer create waves in his portfolio and empowering the investor completely is the
ultimate goal. KARVY Stock Broking Limited is a member of: 1) National Stock Exchange
(NSE) , 2) Bombay Stock Exchange (BSE), 3) MCX Stock Exchange(MCX-SX)
Member - National Stock Exchange (NSE) and The Bombay Stock Exchange (BSE).
Karvy Stock Broking Limited, one of the cornerstones of the Karvy edifice, flows freely towards
attaining diverse goals of the customer through varied services. Creating a plethora of
opportunities for the customer by opening up investment vistas backed by research-based
advisory services. Here, growth knows no limits and success recognizes no boundaries. Helping
the customer create waves in his portfolio and empowering the investor completely is the
ultimate goal.
We offer trading on a vast platform National Stock Exchange and Bombay Stock Exchange.
More importantly, we make trading safe to the maximum possible extent, by accounting for
several risk factors and planning accordingly. We are assisted in this task by our in-depth
research, constant feedback and sound advisory facilities. Our highly skilled research team,
comprising of technical analysts as well as fundamental specialists, secure result-oriented
information on market trends, market analysis and market predictions. This crucial information is
given as a constant feedback to our customers, through daily reports delivered thrice daily ; The
Pre-session Report, where market scenario for the day is predicted, The Mid-session Report,
timed to arrive during lunch break , where the market forecast for the rest of the day is given and
The Post-session Report, the final report for the day, where the market and the report itself is
reviewed. To add to this repository of information, we publish a monthly magazine "Karvy The
Finapolis", which analyzes the latest stock market trends and takes a close look at the various
investment options, and products available in the market, while a weekly report, called "Karvy
Bazaar Baatein", keeps you more informed on the immediate trends in the stock market. In
addition, our specific industry reports give comprehensive information on various industries.
Besides this, we also offer special portfolio analysis packages that provide daily technical advice
on scrips for successful portfolio management and provide customized advisory services to help
you make the right financial moves that are specifically suited to your portfolio.
Our Stock Broking services are widely networked across India, with the number of our trading
terminals providing retail stock broking facilities. Our services have increasingly offered
customer oriented convenience, which we provide to a spectrum of investors, high-networth or
otherwise, with equal dedication and competence.
But true to our spirit, this success is not our final destination, but just a platform to launch further
enhanced quality services to provide you the latest in convenient, customer-friendly stock
management.
Over the years we have ensured that the trust of our customers is our biggest returns. Factors
such as our success in the Electronic custody business has helped build on our tradition of trust
even more. Consequentially our retail client base expanded very fast.
To empower the investor further we have made serious efforts to ensure that our research calls
are disseminated systematically to all our stock broking clients through various delivery channels
like email, chat, SMS, phone calls etc.
Our foray into commodities broking has been path breaking and we are in the process of
converting existing traders in commodities into the more organized mainstream of trading in
commodity futures, both as a trading and risk hedging mechanism.
In the future, our focus will be on the emerging businesses and to meet this objective, we have
enhanced our manpower and revitalized our knowledge base with enhances focus on Futures and
Options as well as the commodities business.
Depository Participants
5
The onset of the technology revolution in financial services Industry saw the emergence of
Karvy as an electronic custodian registered with National Securities Depository Ltd (NSDL)
and Central Securities Depository Ltd (CSDL) in 1998. Karvy set standards enabling further
comfort to the investor by promoting paperless trading across the country and emerged as the top
3 Depository Participants in the country in terms of customer serviced.
Offering a wide trading platform with a dual membership at both NSDL and CDSL, we are a
powerful medium for trading and settlement of dematerialized shares. We have established live
DPMs, Internet access to accounts and an easier transaction process in order to offer more
convenience to individual and corporate investors. A team of professional and the latest
technological expertise allocated exclusively to our demat division including technological
enhancements like SPEED-e, make our response time quick and our delivery impeccable. A wide
national
network
makes
our
efficiencies
accessible
to
all.
Our monthly magazine, Finapolis, provides up-dated market information on market trends,
investment options, opinions etc. Thus empowering the investor to base every financial move on
rational thought and prudent analysis and embark on the path to wealth creation.
Advisory Services Under our retail brand "Karvy the Finapolis", we deliver advisory services to a cross-section of
customers. The service is backed by a team of dedicated and expert professionals with varied
experience and background in handling investment portfolios. They are continually engaged in
designing the right investment portfolio for each customer according to individual needs and
budget considerations with a comprehensive support system that focuses on trading customers'
portfolios and providing valuable inputs, monitoring and managing the portfolio through varied
technological initiatives. This is made possible by the expertise we have gained in the business
over the years. Another venture towards being investor-friendly is the circulation of a monthly
magazine called "Karvy - the Finapolis". Covering the latest of market news, trends, investment
schemes and research-based opinions from experts in various financial
fields. www.thefinapolis.com
The Pre-session Report, where market scenario for the day is predicted
The Mid-session Report, timed to arrive during lunch break , where the market forecast
for the rest of the day is given and
The Post-session Report, the final report for the day, where the market and the report
itself is reviewed.
To add to this repository of information, we publish a monthly magazine called KARVY The
Finapolis which analyzes the latest stock market trends and takes a close look at the various
investment options, and products available in the market, while a weekly report, called KARVY
Bazaar Baatein, keeps you more informed on the immediate trends in the stock market. In
addition, our specific industry reports give comprehensive information on various industries.
Besides this, we also offer special portfolio analysis packages that provide daily technical advice
on scrips for successful portfolio management and provide customized advisory services to help
you make the right financial moves that are specifically suited to your portfolio.
Our Stock Broking services are widely networked across India, with the number of our trading
terminals providing retail stock broking facilities. Our services have increasingly offered
customer oriented convenience, which we provide to a spectrum of investors, high-net worth or
otherwise, with equal dedication and competence.
But true to our spirit, this success is not our final destination, but just a platform to launch further
enhanced quality services to provide you the latest in convenient, customer-friendly stock
management.
Over the years we have ensured that the trust of our customers is our biggest returns. Factors
8
such as our success in the Electronic custody business has helped build on our tradition of trust
even more. Consequentially our retail client base expanded very fast.
To empower the investor further we have made serious efforts to ensure that our research calls
are disseminated systematically to all our stock broking clients through various delivery channels
like email, chat, SMS, phone calls etc.
Our foray into commodities broking has been path breaking and we are in the process of
converting existing traders in commodities into the more organized mainstream of trading in
commodity futures, both as a trading and risk hedging mechanism.
In the future, our focus will be on the emerging businesses and to meet this objective, we have
enhanced our manpower and revitalized our knowledge base with enhances focus on Futures and
Options as well as the commodities business.
Judicious planning that is customized to meet the future needs of the customer deliver a service
that is exemplary. The market-savvy and the ignorant investors, both find this service very
satisfactory. The edge that we have over competition is our portfolio of offerings and our
professional expertise. The investment planning for each customer is done with an unbiased
attitude so that the service is truly customized.
Our monthly magazine, Finapolis, provides up-dated market information on market trends,
investment options, opinions etc. Thus empowering the investor to base every financial move on
rational thought and prudent analysis and embark on the path to wealth creation.
Advisory Services
Under our retail brand KARVY the Finapolis', we deliver advisory services to a cross-section
of customers. The service is backed by a team of dedicated and expert professionals with varied
experience and background in handling investment portfolios. They are continually engaged in
designing the right investment portfolio for each customer according to individual needs and
budget considerations with a comprehensive support system that focuses on trading customers'
portfolios and providing valuable inputs, monitoring and managing the portfolio through varied
technological initiatives. This is made possible by the expertise we have gained in the business
over the years. Another venture towards being investor-friendly is the circulation of a monthly
magazine called KARVY - the Finapolis' covering the latest of market news, trends, investment
schemes and research-based opinions from experts in various financial fields.
to provide extended services to our esteemed customers, thereby making the group a single
window for all financial services.
KFCL offers advisory and brokerage services for the Indian currency derivative markets. We
provide online trading platforms to our clients that enable them to trade whenever they choose
while receiving instant professional support. With our powerful expertise in financial services
that exists across India, along with an enviable technological edge, we are all set to bring to you
the opportunity of investing in the rapidly growing currency market. The currency derivatives
market will be an added advantage to your portfolio as it will help you to manage your price
risks and add to your investment avenues.
Today, we have an extensive network throughout the country, with 225 branches spread across
180 cities.
Karvy Advantage:
Instant Quotes
Hedging Capability
Wide Reach
Higher Leverage
24 X 7 Support
Personalized Services
Careers
We offer growth opportunities that fill your career. Our businesses may be our heart, but it is the
PERFORMERS who are our heartbeat. Our prosperity depends on the employees and they mold
their life through us. Even people residing near to LOC know & trust KARVY.
At KARVY you would be earning benefits (tangible & intangible) that can not only match what
the others can offer but is better.
11
Credentials
Emerging as a leading Investment Banker with a strong support from its Group
entities in Research, Stock Broking, Institutional Sales and Retail Distribution.
Strong team of more than 15 qualified professionals operating from six cities;
Hyderabad, Mumbai, Delhi, Kolkata, Chennai, and Bangalore apart from two
12
One of the largest retail distribution networks with over 850 offices across 636
cities/towns.
About Us
KARVY, our parent group is one of Indias largest integrated financial services providers
with a 25+ year operating history. KARVY covers the entire spectrum of financial services
such as Stock Broking, Commodities Broking / Finance, Registry Services, Depository
services, Merchant Banking & Corporate Finance, IPO distribution, Investment Banking,
Realty Services, Insurance Broking/Distribution, and Distribution of Financial products
like mutual funds, bonds, Personal Finance Advisory Services, BPO / Technology
Services, Wealth Management and Loans. KARVY has a pan-India presence with over
92015 offices in 616 locations across India and overseas at Dubai and New York and has
over 9,000 highly qualified staff.
Keeping in line with Karvy credo to be a leading and preferred financial services provider,
our focus at Karvy Finance will be to provide the complete spectrum of financial services
products to our customers and build a strong nationwide distribution footprint to emerge as
the
leader
in
Capital
Markets
and
Retail
Finance
in
India
Our niche lies in the fulfillment of your financial needs at all stages of your life by making
possible simple and flexible financial solutions tailor made to suit your requirements.
We make it possible for your goal of financial prosperity to become a reality!!!
Vision of Karvy Finance
Vision
To be a leading loans provider delivering superior value to all stakeholders.
Mission
To be a loans provider focused on a friendly, fast, and balanced lending philosophy
enabled through strong customer advocacy, innovative distribution, superior risk profiling
and robust processes.
13
14
KARVY GROUP
The Karvy group was formed in 1983 at Hyderabad, India. Karvy ranks among the top
player in almost all the fields it operates. Karvy Computershare Limited is Indias largest
Registrar and Transfer Agent with a client base of nearly 500 blue chip corporates,
managing over 2 crore accounts. Karvy Stock Brokers Limited, member of National Stock
Exchange of India and the Bombay Stock Exchange, ranks among the top 5 stock brokers
in India. With over 6,00,000 active accounts, it ranks among the top 5 Depositary
Participant in India, registered with NSDL and CDSL. Karvy Comtrade, Member of
NCDEX and MCX ranks among the top 3 commodity brokers in the country. Registered
with AMFI as a corporate Agent, Karvy is also among the top Mutual Fund mobilizer with
over Rs. 5,000 crores under management. Karvy Realty Services, which started in 2006,
has quickly established itself as a broker who adds value, in the realty sector. Karvy Global
offers niche off shoring services to clients in the US.
Karvy has 575 offices over 375 locations across India and overseas at Dubai and New
York. Over 9,000 highly qualified people staff Karvy.
Karvy was started by a group of five chartered accountants in 1979. The partners decided
to offer, other than the audit services, value added services like corporate advisory services
to their clients. The first firm in the group, Karvy Consultants Limited was incorporated on
23rd July, 1983. In a very short period, it became the largest Registrar and Transfer Agent
in India. This business was spun off to form a separate joint venture with Computershare
of Australia, in 2005. Karvys foray into stock broking began with marketing IPOs, in
1993. Within a few years, Karvy began topping the IPO procurement league tables and it
has consistently maintained its position among the top 5. Karvy was among the first few
members of National Stock Exchange, in 1994 and became a member of The Stock
Exchange, Mumbai in 2001. Dematerialization of shares gathered pace in mid-90s and
Karvy was in the forefront educating investors on the advantages of dematerializing their
shares. Today Karvy is among the top 5 Depositary Participant in India.
15
While the registry business is a 50:50 Joint Venture with Computershare of Australia, we
have equity participation by ICICI Ventures Limited and Barings Asia Limited, in Karvy
Stock Broking Limited.
Securities Finance (LAS) Facility enables the customer to avail general purpose loan
against existing investments. The objective of the product is to provide instant liquidity
without having to liquidate the financial securities.
Features
Simple Documentation
Benefits
16
Dividends and other corporate benefits like bonus, rights accrue to the custome
Loan against purchase of Securities facility allows the client to purchase additional
securities with cash borrowed from a lender, using other securities as collateral.
Features
Simple Documentation
Benefits
Additional Shares can be purchased without selling your long term investments
Dividends and other corporate benefits like bonus, rights accrue to the customer
Promoter funding is offered to promoters of the companies against their share holding in
their respective company. With the help of this facility the promoter can increase the share
17
Features
Margin 50% - 75% (depending on the risk profile of the business and the stock)
Tenor 1 to 3 years
Simple Documentation
Benefits
Increase promoters holding in the business with the use of existing stake
A commodity such as agri products (beans, maize, cotton, sugar etc), metal, oil or another
fixed physical substance that investors buy or sell, usually via futures contracts.
Features
List of Commodities: Gold, Silver , Soya bean, RM Seed, Guar seed, Guar gum,
Chana, Pepper, Turmeric, Maize, Jeera , Red Chili, Cocud (cotton seed oil cake),
18
castorseed, mentha , oil, Steel, Wheat, Barley, Gur, Coriander (dhaniya) & Sugar
etc .
Margins range from 20% to 30% on a case to case basis. There is a commodity
wise variation in margin.
If the client wants funding on Final Expiry Date (FED) goods he / she has to take
the approval first.
Benefits
If the demat goods has been transferred in demat account directly by the clients
then on the very next day through RTGS the funded amount will be transferred into
clients bank account on the basis of market valuation.
In the case of arbitrage funding no MTM will be received/ paid to / from the clients
& in that case required margin just only 10%.
In the case of NON FED (Final Expiry Date) funding at the time of giving the
delivery to the exchange there is no need to clear the funding first. KFSL will
release the goods first & after receiving the funds from the exchange, KFSL will
deduct the loan amount with interest and the remaining amount will be paid to the
client through RTGS.
At the time of to take the delivery from the exchange client will paid only margin
i.e. case to case basis that mean no need to pay full payment.
19
Loan can be utilized for any purpose other than speculative and illegal use
INTRODUCTION
The main aim of marketing is meet and satisfy target customers need and wants
buyer behaviour refers to the peoples or organization conduct activities and
together with the impact of various influence on them towards making decision on
purchase of product and service in market. The field of consumer behaviour studies
how individuals, groups and organization select, buy, use and dispose of goods,
service, ideas, or experience to satisfy their needs and desires understanding
consumer behaviour and knowing customer are never simple. The wealth of
products and service produced in a country make our economy strong. The
behaviour of human being during the purchase is being termed as Buyer
Behaviour. Customer says one thing but do another. They may not be in touch
with their deeper motivations. They are responding to influences that change their
mind at the last minute. A buyer makes take a decision whether saver spend the
money.
Buyer Behaviour:
Buyer behaviour is all psychological, Social and physical behaviours of potential
customers as they become aware of evaluate, purchase, consume and tell others
about product &service.
1. Problem identification:
The buying process starts when the buyer recognizes a problem or need. The need
can be triggered by internal or external stimuli. Marketers need to identify the
circumstances that trigger a particular need. By gathering information from a
number of consumers, Marketers can identify the most frequent stimuli that spark
an interest in a product category. They can then develop marketing strategies that
trigger consumer interest.
2. Information Search:
22
3. Evaluation of alternative:
There is no single process used by all consumers by one consumer in all buying
situations. There is several First, the consumer processes, some basic concepts are:
First, the consumer is trying to satisfy need. Second, the consumer is looking for
certain benefits from the product solutions. The marketer must know which criteria
the consumer will use in the purchase decision.
23
4. Purchase:
From among the purchase of alternatives the consumer makes the solution. It may
be to buy or not to buy. If the decision is to buy. The other additional decisions are:
Which types of bike he must buy? From whom to buy a bike
How the payment to be made? And so on. The marketer up to this stage has tried
every means to influence the purchase behaviour, but the choice is properly
consumers. In the evaluation stage the consumer forms preferences among the
brands in the choice set. The consumer may also form an intention to but the most
preferred brand.
24
(3) Consumer behaviours are very complex and dynamic to constantly changing.
And therefore, management needs to adjust with the change otherwise market may
be lot.
(4) The individuals specific behaviours in the market place is affected by internal
factor, such as need , motives, perception, and attitudes, as well as by external of
environmental influences such as the family social groups, culture, economics and
business influences
Investing, like marriage, isn't something that should be entered into lightly. You wouldn't get
married on a first date, would you? Ok, maybe some of us would, but that's not really very
25
foolish. Before we marry... err, I mean invest in a company, there are more than a few things we
need to know about it.
Securities Analysis
Securities analysis is an analysis of securities and the organization and operation of their
markets. The main features are determination of the risk reward structure of equity and debt
securities and their valuation. Technical analysis is a method of predicting price movements and
future market trends by studying charts of past market action which take into account price of
instruments, volume of trading and, where applicable, open interest in the instruments.
Fundamental analysis is a method of forecasting the future price movements of a financial
instrument based on economic, political, environmental and other relevant factors and statistics
that will affect the basic supply and demand of whatever underlies the financial instrument.
Main differences between the two types of analysis:
Fundamental analysis
Technical analysis
Focuses on what ought to happen in a market Focuses on what actually happens in a market
Factors involved in price analysis:
1.Supply and demand
2.Seasonal cycles
3.Weather
4.Government policy
Review of Literature
A researcher should have preliminary orientation and background knowledge about the topic and
he should collect the basic concept and information regarding the Research problem. Due to this
reason review of the literature has an important role in research study. There are various studies
conducted by various research scholars to analyze the behavior of the customer and which factors
affect his behavior while making a decision regarding investment.
26
Chen, Roll and Ross in the year 1986 who considered some significant economic variables
to have systematic influence on asset returns implemented one of the most famous APT tests on
this subject.
Roll and Ross in the year 1980 found that three or four systematic risk factors are statistically
adequate to explain the asset returns in the period of 1962-1972.
Chen in the year 1983 found five factors in the NYSE and AMEX during 1963-1978.
Dhrymesetal in the year 1985 found a changing number of factors depending on the period
length and the size of the stock groups under analysis.
Cheng in the year 1995 implemented factor analysis on both asset returns and macroeconomic
variables in order to derive priced security factors and macroeconomic factors, and then
compared these two categories of factors with a canonical correlation analysis in order to reach a
statistically significant relation.
A research by Ozcam in the year 1997 can be considered an example of APT testing in Istanbul
Stock Exchange. In this research, seven macroeconomic variables of Turkish economy are
separated into expected and unexpected series by a regression process, and then two-step testing
methodology is implemented on these series.
In the year 2001 a study conducted by Altay is another example of two different APT tests
in Istanbul Stock Exchange. In the first test, factor analysis method is employed in daily returns
of 121 to 265 stocks in the 1993-2000 periods for each year and one dominant significant factor
is found among several minor significant factors for each year.
27
R.
in
the
year
1998
analyzed relationships among selected macroeconomic variables and the Indian stock market.
They found that three long-term equilibrium relationships exist among these variables. Their
results suggested that domestic inflation is the most severe deterrent to Indian stock
market performance, and domestic output growth is its predominant driving force.
An
Exploratory
Study
of
Elliott
Wave
Theory
in
Indian
Stock
Markets
by Mihir Dash introduced an innovation whereby charting patterns are translated into logical
expressions, thus removing the subjectivity of charting. This technique can be used to detect
patterns for any technical chart, and it can be customized to the analysts own requirements,
either with exact values or with bounded ranges.
Review of Risk Perception Studies in Behavioral Finance: The Emerging issues by
Victor Ricciardi in May 2007 examined that risk perception is a noteworthy theme within the
behavioral finance literature that examines the decision making process of unsophisticated and
expert investors.
Aggregate investment, the stock market, and the Q model: Robust results for six OECD
countries by Gabriel Sensenbrenner at International Monetary Fund, Washington, DC,
USA. This paper revisits this conflict. Its theoretical and empirical results make the case that, in
contrast to the original static Q investment equation, a new dynamic Q equation is as satisfactory
as Jorgenson's equation from an empirical standpoint while being more satisfactory from a
theoretical stand point. This comparative analysis established that the superiority of the
new Q equations over Jorgenson's is robust.
28
Stock Market Anomalies: A Literature Review and Estimation of Calendar affects on the
S&P 500 index by Marcus Davidsson; in the year 2006. This thesis investigates the Day-ofthe-week, Month-of-the-year and Quarter-of-the-year effects. Historical data from the S&P 500
index between 1970- 2005 is analyzed. The purpose is to investigate if there is any evidence of
increased returns (ROR) pattern related to seasonality during this period. The conclusion is that
Wednesdays, December and Quarter 4 have had the highest ROR while Mondays, September and
Quarter 3 have had the lowest ROR.
Technical Analysis in the Indian Capital Market is a Survey conducted by Sanjay Sehgal &
Meenakshi Gupta in June 2005. The survey aims at providing insights about the way technical
traders operate in the financial market and the trading strategies that they adopt. The survey
covered institutional and individual technical traders with a long and active trading record for the
Indian market. It is observed that the sample respondents tend to use technical analysis along
with fundamental analysis for security selection. They fit the technical tools mainly on the equity
segment of the market and relatively prefer their use during the market upturns.
29
30
Research Methodology
The project provides its readers with a detailed analysis of stock market It has been prepared in
such a manner that the reader feels ease with it. For this project, both primary and secondary data
has been collected. For the purpose of primary research, a questionnaire is generated and then a
survey has been conducted in New Delhi, Ludhiana and Patiala. In the mentioned survey, the
respondents were financial analysts, employees and businessmen. The sample size consisted of
50 people.
Further for the purpose of secondary research, data has been collected from different websites
and books.
For the purpose of technical analysis, various indicators have been studied and then analyzed.
Financial analysis on the other hand involved an in-depth study of stock market.
31
My Analysis
The analysis is based on the facts and figures related to the financial year 2014-2015.
1. Analysis Based on basis of EPS
Earnings per share is generally considered to be the single most important variable in
determining a share's price. EPS is nothing but the earnings of a company over a year divided by
the total number of shares outstanding. The higher the EPS, the wider is the grin on an investors
face.
Company
Grasim Industries Ltd.
State Bank of India
Infosys Technologies Ltd.
Jindal Steel & Power Ltd.
Punjab National Bank
Reliance Industries Ltd.
Housing Development Finance Corporation
Ltd.
Oil & Natural Gas Corporation Ltd.
Tata Steel Ltd.
ACC Ltd.
Hero Honda Motors Ltd.
Bharat Heavy Electricals Ltd.
Sun Pharmaceutical Industries Ltd.
Larsen & Toubro Ltd.
HDFC Bank Ltd.
Axis Bank Ltd.
Tata Consultancy Services Ltd.
Reliance Infrastructure Ltd.
Maruti Suzuki India Ltd.
Tata Power Co. Ltd.
Bharti Airtel Ltd.
Reliance Capital Ltd.
EPS
179.73
143.67
101.73
99.38
98.03
97.07
80.24
72.81
71.18
64.55
64.18
62.53
61.2015
59.44
52.78
50.57
47.99
47.18
42.18
41.65
40.79
39.32
32
33.76
30.69
25.83
22.1
20.35
20.3
19.75
19.48
18.1
17.6
17.45
14.81
12.23
11.72
11.45
11.4
9.95
9.88
9.21
9.12
8.65
4.56
4.02
3.25
1.04
0.29
-3.13
-24.56
So if we see, the top stocks which have a huge EPS in Nifty are clearly Grasim, SBI, Infosys,
Reliance Industries and likewise Suzlon & Ranbaxy are riskier stocks as they have negative EPS.
However the investment decision should be made based on the sectors as one stock from one
sector cant be compared with another sector. The analysis is more helpful when deciding
amongst stocks of same sectors.
For e.g. if an investor wishes to invest in infrastructure stocks, than he can prefer DLF (9.12)
over Unitech (4.56) as the former enjoys higher EPS value as compared to the latter.
33
The percentage of earnings paid to shareholders in dividends is known as dividend payout ratio.
The Dividend Payout Ratio measures what a companys pays out to investors in the form of
dividends. Companies that pay higher dividends may be in mature industries where there is little
room for growth and paying higher dividends is the best use of profits.
Name
HCL Technologies Ltd.
Hindustan Unilever Ltd.
I T C Ltd.
Tata Communications Ltd.
Oil & Natural Gas Corporation Ltd.
Ambuja Cements Ltd.
Hero Honda Motors Ltd.
NTPC Ltd.
Housing Development Finance Corporation Ltd.
Power Grid Corporation of India Ltd.
GAIL (India) Ltd.
ACC Ltd.
Mahindra & Mahindra Ltd.
ICICI Bank Ltd.
Sterlite Industries (India) Ltd.
Tata Consultancy Services Ltd.
Tata Motors Ltd.
Tata Power Co. Ltd.
DLF Ltd.
Bharat Heavy Electricals Ltd.
Tata Steel Ltd.
National Aluminium Co. Ltd.
Infosys Technologies Ltd.
Larsen & Toubro Ltd.
Cipla Ltd.
Sun Pharmaceutical Industries Ltd.
Punjab National Bank
Steel Authority of India Ltd.
Axis Bank Ltd.
DIVIDEND PAYOUT
RATIO
89.7
76.47
50.06
49.28
47.94
46.06
45.86
45.53
43.55
40.79
38.03
37.65
37.29
36.6
34.84
34.2
32.51
31.2
30.99
30.54
29.39
27.72
27.03
26.29
25.92
25.11
23.86
23.71
23.16
34
Wipro Ltd.
State Bank of India
HDFC Bank Ltd.
Siemens Ltd.
Reliance Capital Ltd.
Reliance Infrastructure Ltd.
Grasim Industries Ltd.
Suzlon Energy Ltd.
ABB Ltd.
Reliance Industries Ltd.
Maruti Suzuki India Ltd.
Bharat Petroleum Corporation Ltd.
Hindalco Industries Ltd.
Reliance Communications Ltd.
Jindal Steel & Power Ltd.
Unitech Ltd.
Bharti Airtel Ltd.
Cairn India Ltd.
Idea Cellular Ltd.
Ranbaxy Laboratories Ltd.
Reliance Power Ltd.
23.05
22.9
22.16
19.94
19.29
16.19
15.45
12.36
9.96
9.8
9.78
9.72
9.27
7
5.86
4.6
-
From the above data, we can see that HCL & HUL are paying high dividend to its shareholders
and on the other hand Jindal Steel & Power Ltd. And Unitech are having a very low payout ratio
depicting a poor financial health. But many investors believed that the lower payout ratio will
provide the company with a sizable chunk of earnings to grow the business and with a lower
dividend payout ratio (say lower than 50%) a company can continue to grow its dividend even
during time of economic slowdowns or reduced earnings.
3. Analysis Based on basis of Current Ratio
The ratio is mainly used to give an idea of the company's ability to pay back its short-term
liabilities (debt and payables) with its short-term assets (cash, inventory, receivables). The higher
the current ratio, the more capable the company is of paying its obligations.
Name
Reliance Capital Ltd.
Housing Development Finance Corporation
Ltd.
CURRENT
RATIO
30.37
19.31
35
12.6
4.85
4.71
3.92
2.73
2.68
2.63
2.32
2.31
2.14
2.11
1.83
1.83
1.73
1.69
1.65
1.57
1.56
1.56
1.52
1.44
1.42
1.41
1.4
1.38
1.34
1.28
1.24
1.18
1.15
1.12
1.08
1.06
1.03
1.01
0.89
0.83
0.78
0.75
0.74
0.59
0.58
0.48
0.37
0.34
0.27
0.27
0.03
36
According to this ratio, any ratio under 1 suggests that the company would be unable to pay
off its obligations if they came due at that point like Cairn ltd., PNB, HDFC, SBI, Tata Motors,
ACC etc are not in a position to pay their current obligations.
4. Analysis Based on basis of Debt Equity Ratio
It indicates the proportion of debt the company is using to finance its asset with respect to
shareholders equity. Higher D/E usually means the company has been aggressive in financing its
growth with debt. A ratio greater than one means assets are mainly financed with debt, less than
one means equity provides a majority of the financing.
Name
Bharat Heavy Electricals Ltd.
HCL Technologies Ltd.
I T C Ltd.
Tata Consultancy Services Ltd.
Sun Pharmaceutical Industries Ltd.
Hero Honda Motors Ltd.
GAIL (India) Ltd.
Maruti Suzuki India Ltd.
Tata Communications Ltd.
Steel Authority of India Ltd.
Cipla Ltd.
Oil & Natural Gas Corporation Ltd.
Hindustan Unilever Ltd.
Sterlite Industries (India) Ltd.
Bharti Airtel Ltd.
Larsen & Toubro Ltd.
Grasim Industries Ltd.
Wipro Ltd.
Suzlon Energy Ltd.
Reliance Industries Ltd.
Hindalco Industries Ltd.
Ambuja Cements Ltd.
NTPC Ltd.
Tata Power Co. Ltd.
Reliance Infrastructure Ltd.
DLF Ltd.
Mahindra & Mahindra Ltd.
Tata Motors Ltd.
Reliance Communications Ltd.
ACC Ltd.
Jindal Steel & Power Ltd.
Ranbaxy Laboratories Ltd.
Tata Steel Ltd.
Debt-Equity Ratio
0.01
0.01
0.01
0.01
0.02
0.04
0.2015
0.1
0.11
0.13
0.15
0.17
0.2
0.24
0.32
0.37
0.39
0.4
0.44
0.46
0.48
0.51
0.54
0.6
0.65
0.74
0.77
0.8
0.81
0.88
1.03
1.05
1.08
37
1.29
1.62
1.84
2.02
3.79
4.42
6.38
9.3
11.49
12.81
15.96
If the ratio is high (financed more with debt) then the company is in a risky position. For e.g.:
If an investor wants to invest in Pharmaceutical sector then Ranbaxy is a good option to invest
the money as compared to Cipla and Sun Pharma which a poor debt equity ratio i.e. less than 1.
5. Analysis Based on basis of Net Profit Ratio
Net profit ratio is the ratio of net profit (after taxes) to net sales. It is used to measure the overall
profitability and hence it is very useful to proprietors. The ratio is very useful as if the net profit
is not sufficient, the firm shall not be able to achieve a satisfactory return on its investment.
Obviously, higher the ratio the better is the profitability.
Name
Reliance Power Ltd.
DLF Ltd.
Unitech Ltd.
Reliance Capital Ltd.
Sun Pharmaceutical Industries Ltd.
National Aluminium Co. Ltd.
Power Grid Corporation of India Ltd.
Infosys Technologies Ltd.
Oil & Natural Gas Corporation Ltd.
Bharti Airtel Ltd.
Tata Steel Ltd.
Jindal Steel & Power Ltd.
Ambuja Cements Ltd.
I T C Ltd.
Net Profit
Ratio
83.9
42.49
39.41
32.08
31.01
29.27
28.49
27.52
25.93
23.99
23.43
22.79
22.11
21.18
38
20.74
20.71
20.2015
18.51
18.16
17.45
16.68
16.43
16.29
15.33
14.75
14.56
14.45
14.14
14.01
13.87
13.76
13.31
12.05
12.03
11.72
11.35
10.39
9.74
9.45
9.34
9.27
8.87
8.54
7.91
7.17
7.1
6.96
1.42
-22.02
-252.62
In the Cement sector, we can see that Ambuja Cement have a good net profit ratio of 22.11 and
on the other hand ACC and Grasim have a low net profit ratio of 16.29 & 14.75 respectively.
39
In general, a high P/E suggests that investors are expecting higher earnings growth in the future
compared to companies with a lower P/E.
Name
Cairn India Ltd.
Reliance Power Ltd.
DLF Ltd.
Sterlite Industries (India) Ltd.
Jindal Steel & Power Ltd.
Maruti Suzuki India Ltd.
Bharat Heavy Electricals Ltd.
Housing Development Finance Corporation
Ltd.
Tata Power Co. Ltd.
Unitech Ltd.
Siemens Ltd.
ABB Ltd.
Tata Motors Ltd.
HDFC Bank Ltd.
Mahindra & Mahindra Ltd.
Bharat Petroleum Corporation Ltd.
Wipro Ltd.
Larsen & Toubro Ltd.
Power Grid Corporation of India Ltd.
Tata Communications Ltd.
Cipla Ltd.
I T C Ltd.
Reliance Infrastructure Ltd.
Hero Honda Motors Ltd.
ICICI Bank Ltd.
Tata Consultancy Services Ltd.
Reliance Capital Ltd.
Idea Cellular Ltd.
Hindustan Unilever Ltd.
Reliance Industries Ltd.
Infosys Technologies Ltd.
HCL Technologies Ltd.
NTPC Ltd.
Bharti Airtel Ltd.
Sun Pharmaceutical Industries Ltd.
Axis Bank Ltd.
National Aluminium Co. Ltd.
GAIL (India) Ltd.
Oil & Natural Gas Corporation Ltd.
Grasim Industries Ltd.
State Bank of India
Reliance Communications Ltd.
ACC Ltd.
PE
Ratio
910.18
157.56
45.26
42.7
37.37
35.56
35.39
31.89
30.92
30.7
30.31
29.61
29.22
28.75
28.04
28.01
27.57
27.4
26.72
26.63
26.52
26.5
25.5
25.17
25.02
23.83
23.25
23.15
22.64
22.47
22.36
21.12
21.06
20.38
19.95
18.03
17.18
16.36
15.19
14.53
13.98
12.91
11.98
40
11.2
10.74
9.84
7.61
6.92
-13.97
-30.33
If we take the Automobile sector, we can see that Maruti (35.56) and Tata Motors (29.22) have a
better PE Ratio as compared to Mahindra & Mahindra (28.04) and Hero Honda have a least PE
Ratio of 25.17.
Technical Analysis
The methods used to analyze and predict the performance of a company's stock fall into two
broad categories: fundamental and technical analysis. Those who use technical analysis look for
peaks, bottoms, trends, patterns and other factors affecting a stock's price movement and then
make buy/sell decisions based on those factors. It is a technique many people attempt, but few
are truly successful at it.
Technical analysis is a method of evaluating securities by analyzing statistics generated by
market activity, past prices and volume. Technical analysts do not attempt to measure a security's
intrinsic value; instead they look at stock charts for patterns and indicators that will determine a
stock's future performance.
Technical analysis has become increasingly popular over the past several years, as more and
more people believe that the historical performance of a stock is a strong indication of future
performance. The use of past performance should come as no surprise. People using fundamental
analysis have always looked at the past performance of companies by comparing fiscal data from
previous quarters and years to determine future growth. The difference lies in the technical
analyst's belief that securities move according to very predictable trends and patterns.
These trends continue until something happens to change the trend, and until this change occurs,
price levels are predictable. However, although technical analysis is a terrific tool, most agree it
is much more effective when used in combination with fundamental analysis.
41
Let's take a look at some of the major indicators used by technical analysts.
1.) The Bar Chart
The bar chart is one of the most popular types of charts used in technical analysis. As illustrated
below, the top of the vertical line indicates the highest price at which a security traded during the
day, and the bottom represents the lowest price. The closing price is displayed on the right side of
the bar and the opening price is shown on the left side of the bar. A single bar like the one to the
left represents one day of trading.
See the chart below and things will become clear. The three bars represent trading activity of
three days in Usha Martin. Note how in second bar the opening price is also the low price and
thus the left tick is at the bottom of the bar. On first and third day, the close was less then open
and on second day the close was higher than the open.
42
The advantage of using a bar chart over a straight line graph is that it shows the high, low, open
and close for each particular day.
2.) Candlestick Charting
Candlestick charts have been around for hundreds of years. They are often referred to as
"Japanese candles" because the Japanese would use them to analyze the price of rice contracts.
Similar to a bar chart, candlestick charts also display the open, close, daily high and daily low.
The difference is the use of color to show if the stock went up or down over the day. Candlestick
charts are much more visually appealing, and convey the price information in a quicker, easier
manner as compared to bar charts.
History of Candlestick Charts
43
Candlestick charts are on record as being the oldest type of charts used for price prediction. They
date back to the 1700's, when they were used for predicting rice prices. In fact, during this era in
Japan, Munehisa Homma become a legendary rice trader and gained a huge fortune using
candlestick analysis. He is said to have executed over 100 consecutive winning trades!
The candlesticks themselves and the formations they shape were give colorful names by the
Japanese traders. Due in part to the military environment of the Japanese feudal system during
this era, candlestick formations developed names such as "counter attack lines" and the
"advancing three soldiers". Just as skill, strategy, and psychology are important in battle, so too
are they important elements when in the midst of trading battle.
What do Candlesticks look like?
Candlestick charts are much more visually appealing than a standard two-dimensional bar chart.
As in a standard bar chart, there are four elements necessary to construct a candlestick chart, the
OPEN, HIGH, LOW and CLOSING price for a given time period. Below are examples of
candlesticks and a definition for each candlestick component:
44
The body of the candlestick is called the real body, and represents the range
between the open and closing prices.
A black or filled-in body represents that the close during that time period was
lower than the open, (normally considered bearish) and when the body is open or
white, that means the close was higher than the open (normally bullish).
The thin vertical line above and/or below the real body is called the upper/lower
shadow, representing the high/low price extremes for the period.
45
(3a)
(3b)
The long, dark, filled-in real bodies represent a weak (bearish) close (3a), while a long
open, light-colored real body represents a strong (bullish) close (3b). It is important to
note that Japanese candlestick analysts traditionally view the open and closing prices as
the most critical of the day. At a glance, notice how much easier it is with candlesticks to
determine if the closing price was higher or lower than the opening price.
Major Candlestick Signals
Investors seem to have a "love/hate" relationship with candlestick charts. People either love them
and use them frequently or they are completely turned off by them. There are several patterns to
look for with candlestick charts - here are a few of the popular ones and what they mean:
46
1.) Doji
Recognition: The open and close are the same or very close to the same.
Pattern
Psychology: The Bulls and the Bears are conflicting. This is an alert to
investors to take heed for possible trend reversal.
Recognition: The body of the second day completely engulfs the body of the first day. Shadows
are not a consideration.
Pattern Psychology: This pattern suggests the Bulls are stepping in with force,
suggesting prices will move up.
Recognition: The body of the second day completely engulfs the body of the first day. Shadows
are not a consideration.
Pattern Psychology: This shows the Bears are overwhelming the Bulls,
suggesting prices will move down.
Recognition: The lower shadow (or tail) should be at least two times the length
of the body. The color of the body is not important although a black body has
slightly more Bearish indications and a white body has slightly more Bullish
indications.
47
Pattern Psychology: This pattern at the bottom of a down trend is called a Hammer. This pattern
at the top of an uptrend is called a Hanging-Man
Recognition: A two candle pattern, the body of the first candle is black and the body of the
second candle is white. The white day opens lower, under the trading range of the previous day.
The price closes above the 50% level of the black body.
Pattern Psychology: After a strong downtrend, the atmosphere is Bearish but
before the end of the day the Bulls step in and price closes near the high of the
day.
48
Pattern Psychology: After a strong downtrend the Bulls step in and open the
price higher than the previous day's close. This concerns the Bears and the shorts
start covering their positions. A strong day after that would convince everybody
that the trend may be in a reversal.
Recognition: A three candle pattern at the bottom of a downtrend. The body of the first candle is
black, confirming the current downtrend. The second candle is an indecisive formation. The third
candle is white and should close at least halfway up the black candle.
Pattern Psychology: After an apparent downtrend the Bulls step in and open the
price higher than the previous day's close. The price finishes higher for the day
and the Bears are concerned and begin covering their short positions.
10.) Evening Star
Recognition: A three candle pattern at the top of an uptrend. The body of the
first candle is white, confirming the current uptrend. The second candle is an indecisive
formation. The
third candle is black and should close at least halfway down
the
white
candle.
Pattern
open the price
for the day and
11.) Shooting
Star
49
Recognition: One candle pattern appearing in an uptrend. The shadow (or tail) should be at least
two times the length of the body. The color of the body is not important, although a black body
has slightly more Bearish indications.
Pattern Psychology: After a strong uptrend the Bulls appear to still be in
control with price opening higher, but by the end of the day the Bears step in
and take the price back down to the lower end of the trading range. Lower
trading the next day reinforces the probability of a pullback.
Recognition: The upper shadow should be at least two times the length of the body. The real
body is at the lower end of the trading range. There should be no lower shadow or a very small
lower shadow.
Pattern Psychology: After a downtrend has been in effect, the atmosphere is
Bearish. The price opens and trades lower but before the end of the day, The Bulls
step in and take the price back up. A higher open or a white candle the next day
reinforces buying.
50
Here are some important things you need to remember when using this pattern:
Entry: Confirming the reversal pattern - This kind of price action tells you that one group
of traders has overpowered the other (often as a result of a fundamental change in the
company), and a new trend is being established. Ideally, you should look for a gap
between the first and second candles, along with high volume.
Exit: Defining a target and stop - When using this pattern, you will see an immediate
reversal, which should result in an overall trend change. If the trend instead moves
sideways or against the reversal direction, then you should exit quickly, but prudently.
51
The days close was higher than open and thus the days candlestick has a white (hollow) body.
Now after having a look at two types of charts, lets look at various indicators.
1.) The Moving Average
One of the easiest indicators to understand, the moving average, shows the average value of a
security's price over a period of time. To find the 50-day moving average, you would add up the
closing prices from the past 50 days and divide them by 50. Because prices are constantly
changing, the moving average will move as well. It should also be noted that moving averages
are most often used when compared or used in conjunction with other indicators such as moving
average convergence divergence (MACD) and exponential moving average (EMA).
The most commonly used moving averages are of 20, 30, 50, 100 and 200 days. Each moving
average provides a different interpretation on what the stock will do - there is not one right time
frame. The longer the time-span, the less sensitive the moving average will be to daily price
changes. Moving averages are used to emphasize the direction of a trend and smooth out price
and volume fluctuations (or "noise") that can confuse interpretation.
52
As shown in the chart above, many traders watch for short-term averages to cross above longerterm averages to signal the beginning of an uptrend. As shown by the blue arrows, short-term
averages (e.g. 15-period SMA) act as levels of support when the price experiences a pullback.
Support levels become stronger and more significant as the number of time periods used in the
calculations increases.
2.) The Relative Strength Index (RSI)
There are a few different tools that can be used to interpret the strength of a stock. One of these is
the Relative Strength Index (RSI), which is a comparison between the days that a stock finishes
up and the days it finishes down. This indicator is a big tool in momentum trading. The RSI is a
reasonably simple model that anyone can use. It is calculated using the following formula.
RSI = 100 - [100 / (1 + RS)]
Where: RS = (Avg. of n-day up closes) / (Avg. of n-day down closes)
n= days (most analysts use 9 - 15 day RSI)
The RSI ranges from 0 to 100. At around the 70 level, a stock is considered overbought and you
should consider selling. But this number is not written in stone: in a bull market some believe
that 80 is a better level to indicate an overbought stock since stocks often trade at higher
valuations during bull markets. Likewise, if the RSI approaches 30, a stock is considered
oversold and you should consider buying. Again, make the adjustment to 20 in a bear market.
The smaller the number of days used, the more volatile the RSI is and the more often it will hit
53
extremes. A longer term RSI is more rolling, fluctuating a lot less. Different sectors and
industries have varying threshold levels when it comes to the RSI. Stocks in some industries will
go as high as 75-80 before dropping back, while others have a tough time breaking past 70. A
good rule is to watch the RSI over the long term (one year or more) to determine at what level
the historical RSI has traded and how the stock reacted when it reached those levels.
Above, lets look at the 6 months closing price of the BSE Sensex chart pattern along with a 14
day RSI:First, a look at the oversold and overbought regions. In early Mar '2015, the RSI entered the
oversold region (below 30) as the Sensex was making a low. A reversal of the previous down
move followed. In late Mar '2015, the RSI entered the overbought region (above 70) but
remained at or near this region till the middle of Jun '2015 while the Sensex rallied.
This is an indication of the imperfect nature of technical analysis. The reversal from oversold
region was swift. But a reversal from overbought region took much longer. This is the reason for
using several different technical indicators before coming to a conclusion about buying or
selling.
Now let us look at three different divergences between the BSE Sensex chart pattern and the
Relative Strength Index. During mid-Dec '08 and early Jan '2015, the Sensex made a slightly
higher top. The RSI made a slightly lower one. This negative divergence caused a short reaction.
From early Jan '2015 to the middle of Feb '2015, the Sensex made a lower top but the RSI made
a higher one. The positive divergence. along with the RSI entering the oversold region led to the
huge rally. The rally continued, and from mid-may '2015 to mid-June '2015, the Sensex made
54
higher tops, but the RSI failed to make higher tops. The inevitable correction is the result of this
negative divergence.
It is a lot easier to sit back and analyse after the event. A lot tougher to place buy/sell bets as
these patterns occur in live markets. No wonder it is so difficult to make money by day trading!
It also reinforces my view that for ordinary small investors, neither technical analysis alone, nor
fundamental analysis alone can work well over long periods of time.
A combination helps you to identify good stocks through fundamental analysis, and then use
technical indicators like the Relative Strength Index (RSI) and slow stochastic to time your entry
and exit.
The RSI is a great indicator that can help make some serious money. We should be aware that
big surges and drops in stocks will dramatically affect the RSI, resulting in false buy or sell
signals. Most investors agree that the RSI is most effective in "backing up" or increasing
confidence before making an investment decision so don't invest simply based on the RSI
numbers.
3.) Support and Resistance
Support and resistance are price levels at which movement should stop and reverse direction.
Think of support/resistance (S/R) as levels that act as a floor or a ceiling to future price
movements.
Support - A price level below the current market price, at which buying interest should be able
to overcome selling pressure and thus keep the price from going any lower.
Resistance - A price level above the current market price, at which selling pressure should be
strong enough to overcome buying pressure and thus keep the price from going any higher.
One of two things can happen when a stock price approaches a support/resistance level.
On the one hand, it can act as a reversal point: in other words, when a stock price drops to a
support level, it will go back up. On the other hand, S/R levels may reverse roles once they are
penetrated. For example, when the market price falls below a support level, that former support
level will then become a resistance level when the market later trades back up to that level.
You also need to understand that S/R levels vary in strength, leading to certain price levels being
designated as major or minor S/R levels. For example, a five-year high on a bar chart would be a
much more significant and useful resistance level than a one-month resistance level.
55
Between January and June 2004 Bharat Rasayan failed to cross 27- 28.
When the stock came to 29 the EARLIER RESISTANCE LEVEL NOW BECAME THE
SUPPORT.
Similarly trend lines show conversion of Resistances and Supports. The stock took support at
50 just above its earlier resistance trend line.
Survey
In order to find out what people feel about equity markets, I conducted a survey in New Delhi
and some cities of Punjab. The objectives of the survey and its findings are discussed below.
Objective
56
There were 4 main objectives for conducting the survey. These are:
(i)
(ii)
To find out how people make their investment decision i.e. whether they use
investment research or just invest based on the stock tips from their brokers or their
own brand recollect.
(iii)
To find out what people think about market movement in future i.e. according to them
whether markets will increase or decrease.
(iv)
Sample
The important points regarding the sample and sample size are given below:
Research Methodology
The methodology adopted for the research included a sample survey, the size of sample being 50.
Data collection involved face-to-face research as well as internet- based research. It was based
on a questionnaire. From 42 people, data was collected face-to-face and for remaining, internet
based & tele-calling methods were used.
Questionnaire
The important points regarding the questionnaire are given below:
Questionnaire
Name:
Age:
Sex:
M/F
57
Educational background:
UG ( )
Graduate ( )
3- 10 Lakhs ( )
Occupation: Businessman ( )
PG ( ) (Tick appropriately)
Employee
( )
Preferred Investment Area: (Rank as per priority, 1 for highest and 3 for lowest priority)
Priority
Range
( )
____________
Mutual Fund
( )
____________
Stock Market
( )
____________
Commodity Market
( )
____________
Insurance
( )
____________
__________________
__________________
__________________
Q4. Given a chance to invest in one of the following companies then in which stock would u
like to invest? (tick one)
a.) Axis Bank
b.) HDFC Bank
c.) Icici Bank
d.) Punjab National Bank
e.) SBI
Q.5. On what basis you made the above choice: (tick one)
a.) Brand recognition
_________
_________
_________
58
Q6. According to you, will there be an increase in stock / market prices in the long term?
(Yes/No)
_________
Risky
_________
Safe
_________
Unsafe
_________
Internet
_________
_________
_________
Secondary market
_________
Source of income
_________
Source of investment
_________
Interviewee Profile
The profiles of the interviewees are discussed below.
The sample included mainly businessmen, financial analysts, and traders. Also, some
employees of Religare Securities were considered.
59
Observations
The observations which came from the survey were of very mixed type. The main observation
which I got was that people know about equity markets but when it comes to investments, they
generally go by their brokers advice or the brand value of the company. So, there is a huge
market full of investors which dont use investment research for investing. Another interesting
observation was that people were more interested in going for Post Office saving or Bank FD.
42% people had this investment avenue in their mind. Stock market got 28% while insurance got
16% preference. The following pie-chart shows this.
Investment Preference
Commodity Mkt, 2%
Insurance, 16%
FD
MF
Stock Mkt
Insurance
FD,
42%
Commodity Mkt
60
Also, another observation was that out of people who were aware of equity markets, the majority
(96 %) went for investing in them. However when it came to investment in mutual funds, only
42% people had invested in them.
The pie-chart on next page displays this information.
30
25
Yes; 21
20
No. of People 15
10
5
0
Yes
No
Response
61
The bar-chart given below shows the response given by people when it came to make an
investment decision regarding a banking stock. The results clearly show that people chose a
select stock mainly because of its brand name or because once their broker had recommended the
stock to them. As we can clearly see, a very low percentage (4%) chooses a stock based on its
research report or analysis.
Investment choice regarding a bank
25
21
20
16
15
No. of People
10
5
0
Axis Bank HDFC Bank ICICI Bank
PNB
SBI
Response
62
Research report; 4%
Broker's advise
Research report
Also, 82% people believe that markets will go up in near future however a large majority 74%
do believe that markets are risky and only 4% find it to be a safe investment avenue.
Another interesting observation was that a large majority of investors prefer to invest in IPOs
rather than trade in stock markets. Also only 38% people believe that stock market is an
investment avenue; others treat it as their monthly income alternative.
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Investment avenue
Conclusions
The following conclusions came out from the survey.
People are still unaware about the right method of investing in stock markets.
People rely more on a stocks brand value or their brokers advice rather than using
research tools.
People do believe that prices of stocks will definitely go up in long term; but still not
interested in investing in it when the markets are falling.
Limitations
The survey has some limitations. These are given below:
Since, the sample size is low; it cant be taken for granted that all people feel the same.
investors. This made a huge difference in terms of equal access to investors in a geographically
vast country like India.
The trading network is depicted in Figure 1.1. NSE has main computer which is connected
through Very Small Aperture Terminal (VSAT) installed at its office. The main computer runs on
a fault tolerant STRATUS mainframe computer at the Exchange. Brokers have terminals
(identified as the PCs in the Figure 1.1) installed at their premises which are connected through
VSATs/leased lines/modems.
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An investor informs a broker to place an order on his behalf. The broker enters the order through
his PC, which runs under Windows NT and sends signal to the Satellite via VSAT/leased
line/modem. The signal is directed to mainframe computer at NSE via VSAT at NSE's office. A
message relating to the order activity is broadcast to the respective member. The order
confirmation message is immediately displayed on the PC of the broker. This order matches with
the existing passive order(s), otherwise it waits for the active orders to enter the system. On order
matching, a message is broadcast to the respective member.
The trading system operates on a strict price time priority. All orders received on the system are
sorted with the best priced order getting the first priority for matching i.e., the best buy orders
match with the best sell order. Similar priced orders are sorted on time priority basis, i.e. the one
that came in early gets priority over the later one. Orders are matched automatically by the
computer keeping the system transparent, objective and fair. Where an order does not find a
match, it remains in the system and is displayed to the whole market, till a fresh order comes in
or the earlier order is cancelled or modified. The trading system provides tremendous flexibility
to the users in terms of kinds of orders that can be placed on the system. Several time -related
(immediate or cancel), price-related (buy/sell limit and stop loss orders) or volume related
(Disclosed Quantity) conditions can be easily built into an order. The trading system also
provides complete market information on-line. The market screens at any point of time provide
complete information on total order depth in a security, the five best buys and sells available in
the market, the quantity traded during the day in that security, the high and the low, the last
traded price, etc. Investors can also know the fate of the orders almost as soon as they are placed
with the trading members. Thus the NEAT system provides an Open Electronic Consolidated
Limit Order Book (OECLOB).
Limit orders are orders to buy or sell shares at a stated quantity and stated price. If the price
quantity conditions do not match, the limit order will not be executed. The term limit order
book refers to the fact that only limit orders are stored in the book and all market orders are
crossed against the limit orders sitting in the book. Since the order book is visible to all market
participants, it is termed as an Open Book.
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The users of the trading system can logon as either of the user type. The significance of each type
is explained below:
Corporate Manager: The corporate manager is a term assigned to a user placed at the highest
level in a trading firm. Such a user receives the End of Day reports for all branches of the trading
member. The facility to set Branch Order Value Limits and User Order Value Limits is available
to the corporate manager. Corporate Manager can view outstanding order and trade of all users of
the trading member. He can cancel/modify outstanding order of all user of the trading member.
Branch Manager: The branch manager is a term assigned to a user who is placed under the
corporate manager. The branch manager receives End of Day reports for all the dealers under
that branch. The branch manager can set user order value limit for each of his branch. Branch
Manager can view outstanding order and trade of all users of his branch. He can cancel/modify
outstanding order of all user of his branch.
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Dealer: Dealers are users at the lower most level of the hierarchy. A dealer can view and perform
order and trade related activities only for oneself and does not have access to information on
other dealers under either the same branch or other branches.
When the market closes, trading in all instruments for that market comes to an end. A message to
this effect is sent to all trading members. No further orders are accepted, but the user is permitted
to perform activities like inquiries and trade cancellation.
1.4.4 Surcon
Surveillance and Control (SURCON) is that period after market close during which, the users
have inquiry access only. After the end of SURCON period, the system processes the data for
making the system available for the next trading day. When the system starts processing data, the
interactive connection with the NEAT system is lost and the message to that effect is displayed at
the trader workstation.
1.5 LOGGING ON
On starting NEAT application, the logon screen appears with the following detail:
a) User ID
b) Trading Member ID
c) Password
d) New Password
In order to sign on to the system, the user must specify a valid User ID, Trading Member ID and
the corresponding password. A valid combination of User ID, Trading Member ID and the
password is needed to access the system.
a) User ID
Each trading member can have more than one user. The number of users allowed for each trading
member is notified by the Exchange from time to time. Each user of a trading member must be
registered with the exchange and is assigned an unique user id.
b) Trading Member ID
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The Exchange assigns a trading member id to each trading member. The trading member id is
unique and functions as a reference for all orders/trades of different users. This id is common for
all the users of a particular trading member. The trading member id and user ids form a unique
and valid combination.
It is the responsibility of the trading member to maintain adequate control over the persons
having access to user ids. The trading member should request the Exchange for changes in user
id user names especially when there are changes in the users who are dealing on behalf of the
trading member.
c) Password
When a user logs in for the first time, he has to enter the default password 'NEATCM' provided
by the Exchange. On entering this password, the system requests the user to enter a new
password in the `New Password' field. On entering the new password, the system requests for
confirmation of this new password. This new password is known to the user only.
The password should contain minimum of six characters and maximum of eight characters in
length. A combination of characters and numbers is allowed in the password. The password can
be changed if the user desires so and a new password can be entered. The new password must be
different from the old password. Password appears in the encrypted form and thus complete
secrecy is maintained. The system ensures the change in password for all users (password expiry
period is parameterised by the Exchange). The user can logon by entering a new password as per
the procedure outlined above. In the event of the user forgetting his password, the trading
member is required to inform the Exchange in writing with a request to reset the password. The
user password is reset to the default password set by the Exchange. The user can log on, on
entering a new password as per the procedure outlined above.
If three attempts are made by a user to log on with an incorrect password, then that user is
automatically disabled. In case of such an event, the trading member makes a written request to
the exchange for resetting of password. The user password is reset to the default password set by
the Exchange. The user can log on, on by entering a new password as per the procedure outlined
above.
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Earlier, it was possible for the members having VSATs at more than one location to use the
allotted user ids interchangeably from either location. This gives rise to various systems security
related problems. To reduce such potential risks associated with the members workstation, the
Exchange assigns user id to a specific location. On account of it, whenever a user attempts to log
on to the trader workstation, the system checks for a valid location for that user id in the database
at the host end.
In case there is a mismatch between the user id and corresponding VSAT id, the message is
flashed on the log on screen, You are trying to sign on from a different location. Sign on is not
allowed. Members connected through leased lines, high speed dial up modems are also checked
for the local address of their trading terminals and the corresponding user ids. In case of
mismatch between the two the message You are trying to sign on from a different location. Sign
on is not allowed is flashed on the log on screen. Members maybe allowed logging in from
different VSAT ids only on specific written requests, which may be verified by the Exchange
with reference to the problem specified.
prevents unauthorized access to the system. On selecting the temporary sign off option, a
password entry screen is displayed. The use of the NEAT system is enabled on entering the
correct password. The temporary sign off is automatically activated when the user is inactive for
a period of 5 minutes.
The user has to enter the password to resume activities. If three attempts are made to sign on
with an incorrect password, the user is permanently logged off. In this case the user has to log on
again.
c) Exit
On selection of this option, the user comes out of sign off screen.
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(c) Tool Bar: The toolbar has functional buttons which can be used with the mouse for quick
access to various functions such as Buy Order Entry, Sell Order Entry, Market By Price (MBP),
Previous Trades (PT), Outstanding Order (OO), Activity Log (AL), Order Status (OS), Market
Watch (MW), Snap Quote (SQ), Market Movement (MM), Market Inquiry (MI), Auction Inquiry
(AI), Order Modification (OM), Order Cancellation (OCXL), Security List, Net Position, Online
Backup, Supplementary Menu, Index Inquiry, Index Broadcast and Help. All these functions are
also accessible through the keyboard.
(d) Market Watch Window: The Market Watch window is the main area of focus for a trading
member. This screen allows continuous monitoring of the securities that are of specific interest to
the user. It displays trading information for the selected securities.
(e) Inquiry Window: This screen enables the user to view information such as Market By Price
(MBP), Previous Trades (PT), Outstanding Orders (OO), Activity Log (AL) and so on. Relevant
information for the selected security can be viewed.
(f) Snap Quote: The snap quote feature allows a trading member to get instantaneous market
information on any desired security. This is normally used for securities that are not already set
in the Market Watch window. The information presented is the same as that of the Marker Watch
window.
(g) Order/Trade Window: This window enables the user to enter/modify/cancel orders and for
also to send request for trade cancellation and modification.
(h) Message Window: This enables the user to view messages broadcast by the Exchange such
as corporate actions, any market news, auctions related information etc. and other messages like
order confirmation, order modification, order cancellation, orders which have resulted in quantity
freezes/price freezes and the Exchange action on them, trade confirmation, trade
cancellation/modification requests and Exchange action on them, name and time when the user
logs in/logs off from the system, messages specific to the trading member, etc. These messages
appear as and when the event takes place in a chronological order.
Order Management consists of entering orders, order modification, order cancellation and order
matching.
1.8.1 Entering Orders
The trading member can enter orders in the normal market, odd lot, RETDEBT and auction
market. A user can place orders in any of the above mentioned markets by invoking the
respective order entry screens. After doing so, the system automatically picks up information
from the last invoked screen (e.g. Market Watch/MBP/OO/SQ and Security List). When the user
invokes the order entry screen, the fields that are taken as default are Symbol, Series and Book
Type.
In case of other fields, the system takes the following defaults:
Qty: Regular lot quantity available at best price on counter side
Price: Price of best counter order
Pro: Trading member ID of the user
Order Duration: Day
Disclosed quantity: Fully Disclosed
Participant ID: Trading member ID of the user
Active & Passive Order
When any order enters the trading system, it is an active order. It tries to find a match on the
other side of the books. If it finds a match, a trade is generated. If it does not find a match, the
order becomes a passive order and goes and sits in the order book.
Order Books
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As and when valid orders are entered or received by the trading system, they are first numbered,
time stamped and then scanned for a potential match. This means that each order has a distinctive
order number and a unique time stamp on it. If a match is not found, then the orders are stored in
the books as per the price/time priority. Price priority means that if two orders are entered into
the system, the order having the best price gets the higher priority. Time priority means if two
orders having the same price is entered, the order that is entered first gets the higher priority.
Best price for a sell order is the lowest price and for a buy order, it is the highest price.
The different order books in the NEAT system are as detailed below:
(a) Regular Lot Book: An order that has no special condition associated with it is a Regular Lot
order. When a dealer places this order, the system looks for a corresponding Regular Lot order
existing in that market (Passive orders). If it does not find a match at the time it enters the
system, the order is stacked in the Regular Lot book as a passive order. By default, the Regular
Lot book appears in the order entry screen in the normal market. Buyback orders can be placed
through the Regular Lot (RL) book in the Normal Market. The member can place a buyback
order by specifying BUYBACKORD in the Client Account field in the order entry screen. Such
company buyback orders will be identified in MBP screen by an * (asterisk) indicator against
such orders.
(b) Special Terms Book: Orders which have a special term attribute attached to it are known as
special terms orders. When a special term order enters the system, it scans the orders existing in
the Regular Lot book as well as Special Terms Book. Currently this facility is not available in the
trading system.
(c) Stop Loss Book: Stop Loss orders are released into the market when the last traded price for
that security in the normal market reaches or surpasses the trigger price. Before triggering, the
order does not participate in matching and the order cannot get traded. Untriggered stop loss
orders are stacked in the stop loss book. The stop loss orders can be either a market order or a
limit price order. For buy SL orders, the trigger price has to be less than or equal to the limit
price. Similarly, for sell SL orders, the trigger price has to be greater than or equal to the limit
price.
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(d) Negotiated Trade Book: Two trading members can negotiate a trade outside the Exchange. To
regularise the trade each trading member has to enter the respective order in the system. To enter
Negotiated Trade order details, select book type as NT. It is mandatory for the trading member to
enter the counterparty trading member id. When both parties to a trade enter orders, then the
request goes to the Exchange for approval. The Exchange can either approve the request or reject
it. Further, the Exchange has the discretion to send either of the two orders or both the orders to
the Regular Lot book so that the orders are available to the entire market. Currently this facility
is not available in the trading system.
(e) Odd Lot Book: The Odd Lot book can be selected in the order entry screen in order to trade
in the Odd Lot market. Order matching in this market takes place between two orders on the
basis of quantity and price. To enter orders in the odd lot market, select the book type as OL.
(f) RETDEBT Order Book: RETDEBT market orders can be entered into the system by selecting
the RETDEBT Order book. These orders scan only the RETDEBT Order book for potential
matches. If no suitable match can be found, the order is stored in the book as a passive order. To
enter orders in the RETDEBT market, select the book type as 'D'.
(g) Auction Order Book: Auction order book stores orders entered by the trading members to
participate in the Exchange initiated auctions. Auction orders can be initiator orders, competitor
orders and solicitor orders. For further details kindly refer to section on 'Auction'.
Circuit Breakers
The Exchange has implemented index-based market-wide circuit breakers in compulsory rolling
settlement with effect from July 02, 2001. In addition to the circuit breakers, price bands are also
applicable on individual securities.
Index-based Market-wide Circuit Breakers: The index-based market-wide circuit breaker system
applies at 3 stages of the index movement, either way viz. at 10%, 15% and 20%. These circuit
breakers when triggered bring about a coordinated trading halt in all equity and equity derivative
markets nationwide. The market-wide circuit breakers are triggered by movement of either the
BSE Sensex or the NSE S&P CNX Nifty, whichever is breached earlier.
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In case of a 10% movement of either of these indices, there would be a one-hour market
halt if the movement takes place before 1:00 p.m. In case the movement takes place at or
after 1:00 p.m. but before 2:30 p.m. there would be trading halt for hour. In case
movement takes place at or after 2:30 p.m. there will be no trading halt at the 10% level
and market shall continue trading.
In case of a 15% movement of either index, there shall be a two-hour halt if the
movement takes place before 1 p.m. If the 15% trigger is reached on or after 1:00 p.m.,
but before 2:00 p.m., there shall be a one-hour halt. If the 15% trigger is reached on or
after 2:00 p.m. the trading shall halt for remainder of the day.
In case of a 20% movement of the index, trading shall be halted for the remainder of the
day.
These percentages are translated into absolute points of index variations on a quarterly basis. At
the end of each quarter, these absolute points of index variations are revised for the applicability
for the next quarter. The absolute points are calculated based on closing level of index on the last
day of the trading in a quarter and rounded off to the nearest 10 points in case of S&P CNX
Nifty.
Price Bands
Daily price bands are applicable on securities as below:
Daily price bands of 10% (either way) on securities as specified by the Exchange.
No price bands are applicable on: scrips on which derivative products are available or
scrips included in indices on which derivative products are available. In order to prevent
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members from entering orders at non-genuine prices in such securities, the Exchange has
fixed operating range of 20% for such securities.
Price bands of 20% (either way) on all remaining scrips (including debentures, warrants,
preference shares etc).
The price bands for the securities in the Limited Physical Market are the same as those
applicable for the securities in the Normal Market. For auction market the price bands of 20%
are applicable.
There are no price bands for those securities which are available for trading in the Futures and
Options segment and securities which form part of the indices on which trading is available in
the Futures and Options segment.
Order Types and Conditions
The system allows the trading members to enter orders with various conditions attached to them
as per their requirements. These conditions are broadly divided into Time Conditions, Quantity
Conditions, Price Conditions and Other Conditions. Several combinations of the above are
allowed thereby providing enormous flexibility to the users. The order types and conditions are
summarised below:
a) Time Conditions
DAY: All orders entered into the system are presently considered as Day orders only.
IOC: An Immediate or Cancel (IOC) order allows the user to buy or sell a security as soon as the
order is released into the system, failing which the order is cancelled from the system. Partial
match is possible for the order, and the unmatched portion of the order is cancelled immediately.
b) Quantity Conditions
DQ: An order with a Disclosed Quantity (DQ) allows the user to disclose only a portion of the
order quantity to the market. For e.g. if the order quantity is 10,000 and the disclosed quantity is
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2,000, then only 2,000 is released to the market. After this quantity is fully matched, a
subsequent quantity of 2,000 is disclosed. Thus, totally five disclosures with the same order
number are shown one after the other in the market.
c) Price Conditions
Market: Market orders are orders for which price is specified as 'MKT' at the time the order is
entered. For such orders, the system determines the price.
Stop-Loss: This facility allows the user to release an order into the system, after the market price
of the security reaches or crosses a threshold price called trigger price. Example: If for stop loss
buy order, the trigger is Rs.93.00, the limit price is Rs.95.00 and the market (last traded) price is
Rs.90.00, then this order is released into the system once the market price reaches or exceeds
Rs.93.00. This order is added to the regular lot book with time of triggering as the time stamp, as
a limit order of Rs.95.00.All stop loss orders are kept in a separate book (stop loss book) in the
system until they are triggered.
Trigger Price: Price at which an order gets triggered from the stop loss book.
Limit Price: Price of the orders after triggering from stop loss book.
d) Other Conditions
PRO/CLI: A user can enter orders on his own account or on behalf of clients. By default, the
system assumes that the user is entering orders on the trading members own account. The client
account field is an alphanumeric field. It is mandatory to enter the client account number in the
field provided in case the user enters orders on behalf of clients. The system will assign a code
Cli to such an order. The user cannot specify the trading member code in the client account
field.
Counterparty ID: In case a negotiated trade order is entered, the system requests the user to enter
the counterparty trading member id which is to be obtained by the user from the counter party
itself. Currently this facility is not available in the trading system.
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Participant Code: By default, the system displays the trading member id of the user in the
participant field. Thus, all trades resulting from an order are to be settled by that trading member.
NCIT orders can be marked by the user at the order entry level itself. Only a valid participant
code can be entered. In case the participant is suspended a message to this effect is displayed to
the user on the order entry screen.
Remarks: The remarks field is a description field within the order entry screen provided to
incorporate any remarks to be specified by the user at the time of order entry.
their choice are attractive. Only SEBI registered members who have been granted permission by
the Exchange for providing Internet based trading services can introduce the service after
obtaining permission from the Exchange.
Future Prediction
As we come to the end of the month of August, one reflects on the few weeks gone by to see
continued volatility in the markets around the world. The factors affecting Indian markets this
past month have primarily been fears of an escalation of the Swine Flu situation and a worsening
condition of the monsoons. While the jury is still out on the impact of these on the economy and
consequently on the equity markets, the latest news has been heartening. The problem may
persist, but the panic related to swine flu appears to be more or less over. As the country moves
from prevention to setting up infrastructure for diagnosis and cure, I believe things will return
more to normalcy soon.
The monsoon related issue is more intricate. Latest news about fairly adequate rainfall in the
north-central regions of the country can help limit losses in agricultural production in the Khariff
season and boost prospects of a near normal Rabi crop later this year. The Government having
announced the availability of adequate food stock and the intent to import, if required, makes us
believe that the drought situation may not escalate into a shortage. The slowdown associated with
a bad crop this season has been more or less discounted by the markets.
Looking ahead, I see challenges again on the international front. With most central banks having
finished their latest round of fiscal incentives and now no longer able or willing, as the case may
be, to do further such pump priming, the crutches are coming off and we need to see if these
economies can stand on their own two feet. Latest news from China in this regard has been a bit
disturbing.
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Having said this, I believe the Indian economy continues to be in much better shape and more
capable of withstanding any further slowdown that the Global economy may face. A large part of
the corporate sector in India continues to show signs of robust growth. I believe our focus on
strong fundamentals and attractive prospects will hold markets in good stead in the face of any
short-term volatility that the markets might face. In the longer-term I believe markets are well
positioned to attempt superior risk-adjusted returns.
Conclusion
The following points highlight the project work.
Securities analysis is an analysis of securities and the organization and operation of their
markets. The main features are determination of the risk reward structure of equity and
debt securities and their valuation.
For making an investment decision in stocks, there are broadly two kind of analysis
Fundamental & Technical. Fundamental analysis focuses on what ought to happen in a
market while the latter focuses on what actually happens in a market.
For this project, both primary and secondary data has been collected. A survey was
conducted for primary research while the secondary research involved data collection
from various websites and books.
Of all the modern service institutions, stock exchanges are perhaps the most crucial
agents and facilitators of entrepreneurial progress.
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The primary market is an intermittent and discrete market where the initially listed shares
are traded first time, changing hands from the listed company to the investors. It refers to
the process through which the companies, the issuers of stocks, acquire capital by
offering their stocks to investors who supply the capital.
The secondary market is an on-going market, which is equipped and organized with a
place, facilities and other resources required for trading securities after their initial
offering.
BSE Sensex is a value-weighted index composed of the 30 largest and most actively
traded stocks, representative of various sectors, on the Bombay Stock Exchange.
S&P CNX Nifty is a well diversified 50 stock index accounting for 21 sectors of the
economy.
Fundamental analysis and technical analysis are important for understanding price pattern
of stocks.
In the survey, 90 % people feel that the markets will improve from hereon.
The factors affecting Indian markets this past month have primarily been fears of an
escalation of the Swine Flu situation and a worsening condition of the monsoons
Challenges are on the international front & with most central banks having finished their
latest round of fiscal incentives, the crutches are coming off and we need to see if these
economies can stand on their own two feet.
The Indian economy is in a much better shape and more capable of withstanding any
further slowdown that the Global economy may face.
Our focus on strong fundamentals and attractive prospects will hold markets in good
stead in the face of any short-term volatility that the markets might face.
In the longer-term the markets are well positioned to attempt superior risk-adjusted
returns.
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BIBLIOGRAPHY
1) John L. Person, A Complete Guide to Technical Trading Tactics, Ninth Edition (March 26,
2004)
2) Donald E. Fischer and Ronald J. Jordan, Security Analysis and Portfolio Management
(Sixth Edition).
3) Edwards, Robert D., and John Magee, Technical Analysis of Stock Trends (John Magee, 1997;
first edition, 1948).
4) Geoffrey Poitras, Security Analysis and Investment Strategy (2001)
5) Benjamin Graham and David Dodd, Security Analysis (November, 1999)
6) Erich A. Helfert, D.B.A., Financial Analysis: Tools and Techniques (2000)
7) Peter J. Klien, Getting Started in Security Analysis (April, 2002)
7) Richard A. Brealey, Stewart C. Myers, Alan J. Marcus Fundamentals of Corporate
Finance Third Edition, McGraw-Hill, Section A
Websites Referenced:
www.financegates.com
www.investopedia.com
www.stocks.about.com
www.accountingformanagement.com
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www.sharetipsinfo.com
www.merinews.com
www.tradingday.com
www.marketscreen.com
www.icicidirect.com
www.nseindia.com
www.indiainfoline.com
www.economictimes.com
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