Final Project on General Study on Indian Eqiuty Market

7/30/2019 Final Project on General Study on Indian Eqiuty Market

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General Study On Indian Equity Market

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CHAPTER 1

INTRODUCTION TO INDIAN MARKET

1.1 Introduction To Indian Markets

Of all the modern service institutions, stock exchanges are perhaps the industrial

revolution, as the size of business enterprises grew, it was no longer possible for

proprietors or partnerships to raise colossal amount of money required for

undertaking large entrepreneurial ventures. Such huge requirement of capital

could only be met by the participation of a very large number of investors; their

numbers running into hundreds, thousands and even millions, depending on the

size of business venture. In general, small time proprietors, or partners of aproprietary or partnership firm, are likely to find it rather difficult to get out of

their business should they for some reason wish to do so. This is so because it is

not always possible to find buyers for an entire business or a part of business,

just when one wishes to sell it. Similarly, it is not easy for someone with

savings, especially with a small amount of savings, to readily find an

appropriate business opportunity, or a part thereof, for investment. These

problems will be even more magnified in large proprietorships and partnerships.

Nobody would like to invest in such partnerships in the first place, since onceinvested, their savings would be very difficult to convert into cash. And most


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people have lots of reasons, such as better investment opportunity, marriage,

education, death, health and so on for wanting to convert their savings into cash.

Clearly then, big enterprises will be able to raise capital from the public at large

only if there were some mechanism by which the investors could purchase or

sell their share of business as and they wished to do so. This implies that

ownership in business has to be broken up into a larger

number of small units, such that each unit may be independently & easily

bought and sold without hampering the business activity as such. Also, such

breaking of business ownership would help mobilize small savings in the

economy into entrepreneurial ventures. This end is achieved in a modern

business through the mechanism of shares.

1.2 Objective of Study

a)To learn about Indian Stock Market

b)To learn about Its various aspectsc)To learn about benefits of investing in Indian Stock Market

d)To learn how to invest in Indian Stock Market

e)To measure market movementsf) Properunderstanding and analysis of share marketfirm


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1.3 Share:-

A share represents the smallest recognized fraction of ownership in a publicly

held business. Each such fraction of ownership is represented in the form of a

certificate known as a share certificate. The breaking up of total ownership of abusiness into small fragments, each fragment represented by a share certificate,

enables them to be easily bought and sold.

1.4Stock exchange:-

The institution where this buying and selling of shares essentially takes place is

the Stock Exchange. In the absence of stock exchanges, i.e. Institutions where

small chunks of businesses could be traded, there would be no modern business

in the form of publicly held companies. Today, owing to the stock exchanges,one can be part owners of one company today and another company tomorrow;

one can be part owners in several companies at the same time; one can be part

owner in a company hundreds or thousands of miles away; one can be all of

these things. Thus by enabling the convertibility of ownership in the product

market into financial assets, namely shares, stock exchanges bring together

buyers and sellers (or their representatives) of fractional ownerships of

companies. And for that very reason, activities relating to stock exchanges are

also appropriately enough, known as stock market or security market. Also astock exchange is distinguished by a specific locality and characteristics of its

own; mostly a stock exchange is also distinguished by a physical location and

characteristics of its own. In fact, according to H.T.Parekh, the earliest location

of the Bombay Stock Exchange, which for a long period was known as the

native share and stock brokers association, was probably under a tree around

1870!The stock exchanges are the exclusive centers for the trading of securities.

The regulatory framework encourages this by virtually banning trading of

securities outside exchanges. Until recently, the area of operation/ jurisdictionof exchange were specified at the time of its recognition, which in effect

precluded competition among the exchanges. These are called regional

exchanges. In order to provide an opportunity to investors to invest/ trade in the

securities of local companies, it is mandatory foe the companies, wishing to list

their securities, to list on the regional stock exchange nearest to their registered

office.


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1.5 Types of Markets:-

There are two types of market in India:-

A) Money Market:-

Money market is a market for debt securities that pay off in the short term

usually less than one year, for example the market for 90-days treasury bills.

This market encompasses the trading and issuance of short term non equity debt

instruments including treasury bills, commercial papers, bankers acceptance,

certificates of deposits, etc other word we can also say that the Money Market is

basically concerned with the issue and trading of securities with short term

maturities or quasi-money instruments. The Instruments traded in the money-

market are Treasury Bills, Certificates of Deposits (CDs), Commercial Paper

(CPs), Bills of Exchange and other such instruments of short-term maturities

(i.e. not exceeding 1 year with regard to the original maturity)

B) Capital Market:-

Capital market is a market for long-term debt and equity shares. In this market,the capital funds comprising of both equity and debt are issued and traded. This

also includes private placement sources of debt and equity as well as organizedmarkets like stock exchanges.

Capital market can be divided into Primary and Secondary Markets.

1 Primary Market

2 Secondary Market

Primary Market:-

In the primary market, securities are offered to public for subscription for the

purpose of raising capital or fund. Secondary market is an equity trading avenue

in which already existing/pre- issued securities are traded amongst investors.

Secondary market could be either auction or dealer market. While stock

exchange is the part of an auction market, Over-the-Counter (OTC) is a part of

the dealer market. In addition to the traditional sources of capital from family

and friends, startup firms are created and nurtured by Venture Capital Funds


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and Private Equity Funds. According to the Indian Venture Capital Association

Yearbook (2003), investments of $881million were injected into 80 companies

in 2002, and investments of $470 million were injected into 56 companies in

2003. The firms which received these investments wiredrawn from a wide range

of industries,including finance, consumer goods and health. The growth of the

venture capital and private equity mechanisms in India is critically linked to

their track record for successful exits. Investments by these funds only

commenced in recent years, and we are seeing a rapid buildup in a full range of

channels for exit, with a mix of profitable and unprofitable outcomes. This

success with Exit suggests that investors will allocate increased resources to

venture funds and private equity funds operating in India, who will (in turn) be

able to fund the creation of new firms.

Secondary Market:-

Secondary Market refers to a market where securities are traded after being

initially offered to the public in the primary market and/or listed on the Stock

Exchange. Majority of the trading is done in the secondary market. Secondary

market comprises of equity markets and the debt markets. For the general

investor, the secondary market provides an efficient platform for trading of hissecurities. For the management of the company, Secondary equity markets serve

as a monitoring and control conduitby facilitating value-enhancing control

activities, enabling implementation of incentive-based management contracts,

and aggregating information (via price discovery) that guides management

decisions.

SOURCES - WWW.EQUITYMASTER.COM

WWW.FINANCIALEXPRESS.COM


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CHAPTER 2

RESEARCH METHODOLOGY

2.1 Meaning Of Research

2.2 Types Of Research

2.3 Research Objective

2.4 Data Analysis


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CHAPTER 2

RESEARCH METHODOLOGY

2.1 Meaning of Research:-

Research is the application of scientific method to add to the personal pool of

knowledge. Financial research is a systematic design collection & analysis of

data & finding relevance to specific financial aspect of the company. Data are

fact figures & other relevant materials for the study and analysis

2.2 Types of Research:-

Data Is Primarily Of Two Kinds:-

A) Primary Data

B) Secondary Data


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a)Primary data sourcesPrimary data can be collected through the questionnaire. Which contain the

different question about the investment behavior and investment strategy.

Primary data sources are very helpful for research. This provides information

related to the investors investment behavior & investment strategy.

b)Secondary data sourcesSecondary data can be collected through e-learning. It provides information

regarding Geojit Financial Services Limited

2.3 Research Objectives:-

Main Objective of the Research is

The objective of my research is TO STUDY INVESTOR INVESTMENT

BEHAVIOR IN STOCK MARKET & SUGGESTING GOOD INVESTMENT

STRATEGY

OTHER OBJECTIVES

a) To study the investment habit of the people in the stock market.b) To know about the peoples preference for investment whether investment or

trading

c) To understand the frequency of investment in the marketd) To analyze from total saving how much portion of amount people invest in

stock market

e) To understand how much people invest at a timef) To know that for how much period people invest in stock market

g) To understand the expected return of people from investment


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2.4 Data Analysis:-

1. From how many years you are in the stock market?0-2 year 2-4 year

4-6 year more than 6 year

No. of

years

No. of

persons

0-2 year 21

2-4 year 24

4-6 year 9

more than

6 year

6

As shown above 35 % persons of my study have experience of about 2 years,

about 40 % persons of my study have experience about 2 to 4 years, 15 %

persons of my study have experience about 4 to 6 years, about 10 % persons of

my study have experience of more than 6 years in stock market.

35%

40%

15%

10%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

0-2 YEAR 2-4 YEAR 4-6 YEAR MORE THAN 6

YEAR


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2. How much investment have you made in the market? (Approximate)0-2 lakh 2-4 lakh

4-6 lakh more than 6 lakh

Investment No. of

persons

0-2 lack 30

2-4 lack 18

4-6 lack 9

more than 6

lack

3

As per my research about 50 % persons would like to invest up to 2 lack while

30 % persons would like to invest 2 to 4 lack and about 15 % persons would

like to invest 4 to 6 lack while only 5 % persons would like to invest more than

6 lack. So company should focus on those customers who would like to invest

more in stock market.

50%

30%

15%

5%

0%

10%

20%

30%

40%

50%

60%

0-2 LAKH 2-4 LAKH 4-6 LAKH MORE THAN 6

LAKH


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3. Who brings you in stock market?

Friends & Relativ News paper

Advertise Mega public issue

Source No. of

persons

Friends & Relative 42

News paper 12

Advertise 0

Mega public issue 6

As per above chart about 70 % persons would like to invest in stock market as

per opinion of their friends and relatives while 20 % persons would like to

invest as per newspaper and magazines and persons do not like to invest

through advertising and about 10 % persons would like to invest as per mega

public issue. So it can be conclude that most of the people invest as per opinion

of their friends and relatives.

70%

20%

0%

10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

FRIENDS &

RELATIVE

NEWSPAPER &

MAGAZINE

ADVERTISE MEGA PUBLIC

ISSUE


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4. How frequently do you invest in the market?

Weekly Monthly

Quarterly Half yearly

Frequency of

investment

No. of

persons

Weekly 24

Monthly 18

Quarterly 8

Half yearly 10

As per my research about 40 % persons would like to invest weekly in stock

market while 30% persons would like to invest monthly in stock market and

about 13.33% persons would like to invest quarterly in stock market while

about 16.67% persons would like to invest half yearly in stock market.

40%

30%

13.33%16.67%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

WEEKLY MONTHLY QUARTERLY HALF YEARLY


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5. From total saving how much portion of amount you invest in stock

market?

10-20% 20-40% 40-60%

60-80% 80-100%

Investment in

stock market

No. of

persons

10-20% 10

20-40% 2440-60% 18

60-80% 4

80-100% 4

As per above chart about 16.66% persons invest 10 to 20% of their saving while

about 40% persons invest 20 to 40% of their saving and about 30% persons

invest 40 to 60% of their saving and about 6.67% persons invest 60 to 80% of

their saving while about 6.67% persons invest 80 to 100% of their saving.

16.66%

40%

30%

6.67% 6.67%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

10-20 % 20-40% 40-60% 60-80% 80-100%


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6. How much do you invest at a time? (In1000Rs.)

Up to 5 5-10

10-15 15-20

20-25 More than 25

Up to 5 20

5-10 20

10-15 10

15-20 2

20-25 2

More than 25 6

As per my research about 33.34% persons invest up to 5000 Rs. At a time and

about 33.345 persons invest 5000 to 10000 Rs. At a time while about 16.66%

persons invest 10000 to 15000 Rs. At a time and about 3.33% persons invest

15000 to 20000 Rs. At a time while another 3.33% persons would like to invest

20000 to 25000 Rs. At a time and about 10% persons invest more than 25000

Rs. At a time.

33.34% 33.34%

16.66%

3.33% 3.33%

10%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

Up

to 5

5-10 10-15 15-20 20-25 MORE THAN

25


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7. How much return you expect on your investment decision?

8-12% 12-16%

16-20% More than 20%

Expected return No. of persons

8-12% 18

12-16% 11

16-20% 16

More than 20% 15

As per my research 30% persons expect 8 to 12% return while 18.33% persons

expect 12 to 16% return and about 26.67% expect 16 to 20% return while 25%

persons expect more than 2

30%

18.33%

26.67%25%

0%

5%

10%

15%

20%

25%

30%

35%

8-12% 12-16% 16-20% MORE THAN 20%


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8. On what basis you take your investment decision?

Brokers advise Market situation

Tips, paid service News paper, Maga

Companys news, Result Own study

Above chart shown the various factors and its impact on investment and how

investor consider such factors while investing. The chart suggest that people

much like to invest according to their own study of stock m

10%

13.33%10%

20%

20%26.67%

Brokers advis e 20%

Market situation

20%

Tips, paid service

10%

News paper,

Magazine 13.33%

Companys news,

Result 10%

Own study 26.67%

Base No.of persons

Brokers advise 12

Market situation 12

Tips, paid service 6

News paper, Magazine 8

Companys news, Result 6

Own study 16


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9. From below mentioned share price range which range do you prefer for

Buying share?

Below Rs.50 Rs.50-10

Rs100-500 More than Rs.500

Price range No.of persons

Below Rs.50 6

Rs.50-100 26

Rs100-500 20

More than Rs.500 8

Above chart shows the price range preferred by various persons. From the

above chart it can be conclude that majority of people prefer the price of share

from 50 to 10

10%

43.34%

33.33%

13.33%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Rs.50-100 More than Rs.500


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For preparing the project report, I have visited the Businessdictinory.com and

Investorword.com from last many weeks wherein I put my basic question

related to my project and I got many review from this and then I research the

information and data which I used for analysis. I have filled up the

questionnaire with the customers of Businessdictinory.com and

Investorword.com. The blend of learning and knowledge acquired during my

practical studies at the above websites is presented in this project report.

The project report starts with the research objectives, I have used simple random

sampling method for my research and the sources for data collection is both

primary sources and secondary sources., after this I have shown the data

analysis of each question and for analysis I have used percentile method.

I hope that the information incorporated in this project report would be

appreciated as I have put in may be efforts in leaving no stone unturned as I

consider it to be true, fair and relevant in its content and context to the best of

my knowledge and ability.

Sources : www.businessdictionary.com

www.investorword.com

CHAPTER 3
http://www.businessdictionary.com/http://www.businessdictionary.com/


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DATA COLLECTION

3.1 BSE

3.2 NSE

3.3 NSE Family

3.4 Listing of Security

3.5 Membership Administration

3.6 Dematerlization

3.7 Investment

3.8 Broker & Sub Broker

3.9 Auction

CHAPTER: 3


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DATA COLLECTION

33..11Bombay Stock Exchange Of India Limited:-

Bombay Stock Exchange Limited is the oldest stock exchange in Asia with

a rich heritage. Popularly known as "BSE", it was established as "The

Native Share & Stock Brokers Association" in 1875. It is the first stock

exchange in the country to obtain permanent recognition in 1956 from the

Government of India under the Securities Contracts (Regulation) Act,1956.

The Exchange's pivotal and pre-eminent role in the development of the

Indian capital market is widely recognized and its index, SENSEX, is

tracked worldwide. Earlier an Association of Persons (AOP), the

Exchange is now a demutualised and corporative entity incorporated under

the provisions of the Companies Act, 1956, pursuant to the BSE

(Corporatization and Demutualization) Scheme, 2005 notified by the

Securities and Exchange Board of India (SEBI). With demutualization, the

trading rights and ownership rights have been de-linked effectively

addressing concerns regarding perceived and real conflicts of interest. The

Exchange is professionally managed under the overall direction of the

Board of Directors. The Board comprises eminent professionals,

representatives of Trading Members and the Managing Director of the

Exchange. The Board is inclusive and is designed to benefit from the


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participation of market intermediaries. In terms of organization structure,

the Board formulates larger policy issues and exercises over-all control.

The committees constituted by the Board are broad-based. The day-to-day

operations of the Exchange are managed by the Managing Director and a

management team of professionals. The Exchange has a nation- wide

reach with a presence in 417 cities and towns of India. During the year

2004-2005, the trading volumes on the Exchange showed robust growth.

The Exchange provides an efficient and transparent market for trading in

equity, debt instruments and derivatives. The BSE's On Line Trading

System (BOLT) is a proprietary system of the Exchange and is BS 7799-2-

2002 certified. The surveillance and clearing & settlement functions of the

Exchange are ISO 9001:2000 certified.

Bombay Stock Exchange Limited (BSE) which was founded in 1875 with

six brokers has now grown into a giant institution with over 874 registered

Broker-Members spread over 380 cities across the country. Today, BSE's

Wide Area Network (WAN) connecting over 8000 BSE Online Trading

(BOLT) System Trader Work Stations (TWS) is one of the largest of its

kind in the country. With a view to provide efficient and integrated

services to the investing public through the members and their associates

in the operations pertaining to the Exchange, Bombay Stock Exchange

Limited (BSE) has set up a unique Member Services and Development to

attend to the problems of the Broker-Members. Member Services and

Development Department is the single point interface for interacting with

the Exchange Administration to address to Members' issues. The

Department takes care of various problems and constraints faced by the

Members in various products such as Cash, Derivatives, Internet Trading,and Processes such as Trading, Technology, Clearing and Settlement,

Surveillance and Inspection, Membership, Training, Corporate

Information, etc.

Vision of BSE:-


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Emerge as the premier Indian stock exchange byEstablishing global

benchmarks"

OBJECTIVES OF BSE:-

The BSE SENSEX is the benchmark index with wide acceptance among

individual investors, institutional investors, foreign investors, foreign investors

and fund managers. The objectives of the index are:-

A.To measure market movements:-Given its long history and its wide acceptance, no other index matches

the BSE SENESX in the reflecting market movements and sentiments.

SENSEX is widely used to describe the mood in the Indian stock markets.

B.Benchmark for funds performance:-The inclusion of blue chip companies and the wide and balanced industry

Representation in the SENSEX makes it the ideal benchmark for fund managers

to compare the performance of their funds.

C.For index based derivatives products:-Institutional investors, money managers and small investors, all refer to the

BSE SENSEX for their specific purposes. The BSE SENSEX is in effect the

proxy for the Indian stock markets. Since SENSEX comprises of the leading

companies in all the significant sectors in the economy, we believe that it will

be the most liquid contract in the Indian market and will garner a predominant

market share.

COMMODITY EXCHANGES:-

The three exchanges are:


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1. National Commodity & Derivatives Exchange Limited (NCDEX)

2. Multi Commodity Exchange of India Limited (MCX)

3. National Multi-Commodity Exchange of India Limited (NMCEIL)

All the exchanges have been set up under overall control of ForwardMarket Commission (FMC) of Government of India.

D.National Commodity & Derivatives Exchange Limited (NCDEX):-National Commodity & Derivatives Exchange Limited (NCDEX) located in

Mumbai is a public limited company incorporated on April 23, 2003 under the

Companies Act, 1956 and had commenced its operations on December 15,2003.This is the only commodity exchange in the country promoted by national

level institutions. It is promoted by ICICI Bank Limited, Life Insurance

Corporation of India (LIC), National Bank for Agriculture and Rural

Development (NABARD) and National Stock Exchange of India Limited

(NSE).

It is a professionally managed online multi commodity exchange. NCDEX is

regulated by Forward Market Commission and is subjected to various laws ofthe land like the Companies Act, Stamp Act, Contracts Act, Forward

Commission (Regulation) Act and various other legislations.

E.Multi Commodity Exchange of India Limited (MCX):-Headquartered in Mumbai Multi Commodity Exchange of India Limited

(MCX), is an independent and de-metalized exchange with a permanent

recognition from Government of India. Key shareholders of MCX are FinancialTechnologies (India) Ltd., State Bank of India, Union Bank of India,

Corporation Bank, Bank of India and Canada Bank. MCX facilitates online

trading, clearing and settlement operations for commodity futures markets

across the country. MCX started offering trade in November 2003 and has built

strategic alliances with Bombay Bullion Association, Bombay Metal Exchange,

Solvent Extractors Association of India, Pulses Importers Association and

Shetkari Sanghatana.


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F. National Multi-Commodity Exchange of India Limited (NMCEIL):-National Multi Commodity Exchange of India Limited (NMCEIL) is the first

demutualized, Electronic Multi-Commodity Exchange in India. On 25th July,

2001, it was granted approval by the Government to organize trading in the

edible oil complex. It has operationalised from November 26, 2002. It is being

supported by Central Warehousing Corporation Ltd., Gujarat State Agricultural

Marketing Board and Neptune Overseas Limited. It got its recognition in

October 2000. Commodity exchange in India plays a Important role where the

prices of any commodity are not fixed, in an organized way. Earlier only the

buyer of produce and its seller in the market judged upon the prices. Others

never had a say. Today, commodity exchanges are purely speculative in nature.

Before discovering the Price, they reach to the producers, end-users, and even

the retail investors, at a grassroots level. It brings a price transparency and risk

management in the vital market. A big difference between a typical auction,

where a single auctioneer announces the bids and the Exchange is that people

are not only competing to buy but also to sell. By Exchange rules and by law,

no one can bid under a higher bid, and no one can offer to sell higher than

someone elses lower offer. That keeps the market a efficient as possible, and

keeps the traders on their toes to make sure no one gets the purchase or sale

before they do.

Sources:-www.bseindia.com

3.2 NSENational Stock Exchange Of India :-


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Capital market reforms in India have outstripped the process of liberalization in

most other sectors of the economy. However, the creation of an independent

capital market regulator was the initiation of this reform process. After the

formation of the Securities Market regulator, the Securities and Exchange Board

of India (SEBI), attention were drawn towards the inefficiencies of the bourses

and the need was felt for better regulation, discipline and accountability. A

Committee recommended the creation of a 2nd stock exchange in Mumbai

called the "National Stock Exchange". The Committee suggested the formation

of an exchange which would provide investors across the country a single,

screen based trading platform, operated through a VSAT network. It was on this

recommendation that setting up of NSE as a technology driven exchange was

conceptualized. NSE has set up its trading system as a nation-wide, fully

automated screen based trading system. It has written for itself the mandate to

create a world-class exchange and use it as an instrument of change for the

industry as a whole through competitive pressure. NSE was incorporated in

1992 and was given recognition as a stock exchange in April 1993. It started

operations in June 1994, with trading on the Wholesale Debt Market Segment.

Subsequently it launched the Capital Market Segment in November 1994 as a

trading platform for equities and the Futures and Options Segment in June 2000

for various derivative instruments.

Objectives of NSE:-

A.Establishing a nationwide trading facility for all types of securities;


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B.Ensuring equal access to investors all over the country through anappropriate communication network;

C.Providing a fair, efficient and transparent securities market using electronictrading system;

D.Enabling shorter settlement cycles and book entry settlements; andE. Meeting international benchmarks and standards. NSE has been able to take

the stock market to the doorsteps of the investors.

The technology has been harnessed to deliver the services to the investors

across the country at the cheapest possible cost. It provides a nation-wide,

screen-based, automated trading system, with a high degree of transparency and

equal access to investors irrespective of geographical location. The high level of

information dissemination through on-line system has helped in integrating

retail investors on a nation-wide basis. The standards set by the exchange in

terms of market practices, products, technology and service standards have

become industry benchmarks and are being replicated by other marketparticipants. Within a very short span of time, NSE has been able to achieve all

the objectives for which it was set up. It has been playing a leading role as a

change agent in transforming the Indian Capital Markets to its present form.

The Exchange provides trading in 3 different segments viz.

A.Wholesale debt market (WDM)

B.Capital market (CM) segment andC.The futures & options (F&O) segment.

A.Wholesale Debt Market:-


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listing of securities, trading systems & processes, clearing and settlement, risk

management, trading statistics etc are available here.

C.Future & Option Segment:-Futures & Options segmentof NSE provides trading in derivatives instruments

like Index Futures, Index Options, Stock Options, Stock Futures and Futures on

interstates. Though only four years into its operations, the futures and options

segment of NSE has made a mark for itself globally. In the Futures and Options

segment, trading in Nifty and CNX IT index and 53 single stocks are available.

futures and options would be available on 118 single stocks.

3.3 NSE Family:-

A.NSCCL:-

National Securities Clearing Corporation Ltd. (NSCCL), a wholly-owned

subsidiary of NSE, was incorporated in August 1995 and commenced clearing

operations in April 1996. It was the first clearing corporation in the country to

provide notation/settlement guarantee that revolutionized the entire concept of

settlement system in India. It was set up to bring and 9 sustain confidence inclearing and settlement of securities; to promote and maintain short and

consistent settlement cycles; to provide counter-party Risk guarantee, and to

operate a tight risk containment system. It carries out the clearing and settlement

of the trades executed in the equities and derivatives segments of the NSE. It

operates a well-defined settlement cycle and there are no deviations or

deferments from this cycle. It aggregates trades over a trading period T, nets the

positions to determine the liabilities of members and ensures movement of

funds and securities to meet respective liabilities. It also operates a SubsidiaryGeneral Ledger (SGL) for settling trades in government securities for its


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constituents. It has been managing clearing and settlement functions since its

inception without a Single failure or clubbing of settlements. It assumes the

counter-party risk of each member and guarantees financial settlement. It has

tied up with 10 Clearing Banks viz., Canara Bank, HDFC Bank, IndusInd Bank,

ICICI Bank, UTI Bank, Bank of India, IDBI Bank and Standard Chartered Bank

for funds settlement while it has direct connectivity with depositories for

settlement of securities. It has also initiated a working capital facility in

association with the clearing banks that helps clearing members to meet their

working capital requirements. Any clearing bank interested in utilizing this

facility has to enter into an agreement with NSCCL and with the clearing

member. NSCCL has also introduced the facility of direct payout to clients

account on both the depositories.

It ascertains from each clearing member, the beneficiary account details of their

respective clients who are due to receive pay out of securities. It has provided its

members with a front-end for creating the file through which the information is

provided to NSCCL. Based on the information received from members, it sends

payout instructions to the depositories, so that the client receives the pay out of

securities directly to their accounts on the pay-out day. NSCCL currently settles

trades under T+2 rolling settlement. It has the credit of continuously upgrading

the clearing and settlement procedures and has also brought Indian financial

markets in line with international markets. It has put in place online real-time

monitoring and surveillance system to keep track of the trading and clearing

members outstanding positions and each member is allowed to trade/operate

within the pre-set limits fixed according to the funds available with the

Exchange on behalf of the member. The online surveillance mechanism also

generates various alerts/reports on any price/volume movements of securities

not in line with the normal trends/patterns.

B.IISL:-


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India Index Services and Products Limited (IISL), a joint venture of NSE

and Credit Rating Information Services of India Limited (CRISIL), was set up

in May 1998 to provide indices and index services. It has a consulting and

licensing agreement with Standard and Poor's (S&P), the world's leading

provider of invest able equity indices, for co-branding equity indices. IISL pools

the index development efforts of NSE and CRISIL into a coordinated whole.

It is India's first specialized company which focuses upon the index as a core

product. It provides a broad range of products and professional index services. It

maintains over 70 equity indices comprising broad based benchmark indices,

sectoral indices and customized indices. Many investment and risk management

products based on IISL indices have been developed in the recent past. These

include index based derivatives on NSE, a number of index funds and India's

first exchange traded fund.

C.NSDL:-

Prior to trading in a dematerialized environment, settlement of trades required

moving the securities physically from the seller to the ultimate buyer, through

the seller's broker and buyer's broker, which involved lot of time and the risk of

delay somewhere along the chain. Further, the system of transfer of ownership

was grossly inefficient as every transfer involved physical movement of paper

to the issuer for registration, with the change of ownership being evidenced by

an endorsement on the security certificate. In many cases, the process of transfer

took much longer than stipulated in the then regulations. Theft, forgery,


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mutilation of certificates and other irregularities were rampant. All these added

to the costs and delays in settlement and restricted liquidity. To obviate these

problems and to promote dematerialization of securities, NSE joined hands with

UTI and IDBI to set up the first depository in India called the "National

Securities Depository Limited" (NSDL). The depository system gained quick

acceptance and in a very short span of time it was able to achieve the objective

of eradicating paper from the trading and settlement of securities, and was also

able to get rid of the risks associated with fake/forged/stolen/bad paper.

Dematerialized delivery today constitutes almost 100% of the total delivery

based settlement.

D.NSE.IT:-

NSE.IT Limited, a 100% technology subsidiary of NSE, was incorporated in

October 1999 to provide thrust to NSEs technology edge, concomitant with its

overall goal of harnessing latest technology for optimum business use.

It provides the securities industry with technology that ensures transparency and

efficiency in the trading, clearing and risk management systems. Additionally,

NSE.IT provides consultancy services in the areas of data warehousing, internet

and business continuity plans.

Amongst various products launched by NSE.IT are NEAT XS, a Computer-To-

Computer Link (CTCL) order routing system, NEAT iXS, an internet trading

system and Promos, professional brokers back office system. NSE.IT also

offers an e learning oral, invarsitywww.finvarsity.com) dedicated to the finance

sector. The site is powered by Enlister - a learning management system

developed by NSE.IT jointly with an e-learning partner. New initiatives include

payment gateways, products for derivatives segments and Enterprise

Management Services (EMSs).


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E.NCDEX:-NSE joined hand with other financial institutions in India viz., ICICI Bank,

NABARD, LIC, PNB, CRISIL, Canara Bank and IFFCO to promote the

NCDEX which provide a platform for market participants to trade in wide

spectrum of commodity derivatives. Currently NCDEX facilitates trading of 37

agro based commodities, 1 base metal and 2 precious metal.

3.4 listing Of Securities:-

The stocks, bonds and other securities issued by issuers require listing for

providing liquidity to investors. Listing means formal admission of a security to

the trading platform of the Exchange. It provides liquidity to investors without

compromising the need of the issuer for capital and ensures effective

monitoring of conduct of the issuer and trading of the securities in the interest of

investors. The issuer wishing to have trading privileges for its securities satisfies

listing requirements prescribed in the relevant statutes and in the listing

regulations of the Exchange. It also agrees to pay the listing fees and complywith listing requirements on a continuous basis. All the issuers who list their

securities have to satisfy the corporate governance requirement framed by

regulators.

A.Listing Criteria:-The Exchange has laid down criteria for listing of new issues by companies,

companies listed on other exchanges, and companies formed byamalgamation/restructuring, etc. in conformity with the Securities Contracts

(Regulation) Rules, 1957 and directions of the Central Government and the

Securities and Exchange Board of India (SEBI). The criteria include minimum

paid-up capital and market capitalization, project appraisal, company/promoter's

track record, etc. The issuers of securities are required to adhere to provisions of

the Securities Contracts (Regulation) Act, 1956, the Companies Act, 1956, the

Securities and Exchange Board of India Act, 1992, and the rules, circulars,

notifications, guidelines, etc. prescribed there under.


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B.Listing Agreement:-All companies seeking listing of their securities on the Exchange are required to

enter into a listing agreement with the Exchange. The agreement specifies all

the requirements to be continuously complied with by the issuer for continued

listing. The Exchange monitors such compliance. Failure to comply with the

requirements invites suspension of trading, or withdrawal/delisting, in addition

to penalty under the Securities Contracts (Regulation) Act, 1956. The agreement

is being increasingly used as a means to improve corporate governance

C.Benefits of Listing on NSE:-a. NSE provides a trading platform that extends across the length and breadthof the country. Investors from approximately 345 centers can avail of trading

facilities on the NSE trading network. Listing on NSE thus, enables issuersto reach and service investors across the country.

b. NSE being the largest stock exchange in terms of trading volumes, theSecurities trade at low impact cost and are highly liquidity. This in turnreduces the cost of trading to the investor.

c. The trading system of NSE provides unparallel level of trade and post-tradeinformation. The best 5 buy and sell orders are displayed on the tradingsystem and the total number of securities available for buying and selling isalso displayed. This helps the investor to know the depth of the market.Further, corporate announcements, results, corporate actions etc are alsoavailable on the trading system, thus reducing scope for price manipulationor misuse.

d. The facility of making initial public offers (IPOs), using NSE's network andsoftware, results in significant reduction in cost and time of issues.

e. NSE's web-site www.nseindia.com provides a link to the web-sites of thecompanies that are listed on NSE, so that visitors interested in any companycan visit that company's web-site from the NSE site.

f. Listed companies are provided with monthly trade statistics for the securitiesof the company listed on the Exchange.


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3.5 Membership Administration:-

The trading in NSE has a three tier structure-the trading platform provided by

the Exchange, the broking and intermediary services and the investing

community. The trading members have been provided exclusive rights to trade

subject to their continuously fulfilling the obligation under the Rules,

Regulations, Byelaws, Circulars, etc. of the Exchange. The trading members are

subject to its regulatory discipline. Any entity can become a trading member by

complying with the prescribed eligibility criteria and exit by surrendering

trading membership. There are no entry/exit barriers to trading membership.

Eligibility Criteria:-

The Exchange stresses on factors such as corporate structure, capital adequacy,

track record, education, experience, etc. while granting trading rights to its

members. This reflects a conscious effort by the Exchange to ensure quality

broking services which enables to build and sustain confidence in the

Exchange's operations. The standards stipulated by the Exchange for trading

membership are substantially in excess of the minimum statutory requirements

as also in comparison to those stipulated by other exchanges in India. Theexposure and volume of transactions that can be undertaken by a trading

member are linked to liquid assets in the form of cash, bank guarantees, etc.

deposited by the member with the Exchange as part of the membership

requirements. The trading members are admitted to the different segments of the

Exchange subject to the provisions of the Securities Contracts (Regulation) Act,

1956, the Securities and Exchange Board of India Act, 1992, the rules, circulars,

notifications, guidelines, etc., issued there under and the byelaws, Rules and

Regulations of the Exchange. All trading members are registered with SEBI.


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3.6 Dematerialisation (DEMAT):-

A.MEANING:-Dematerialization is the process by which physical certificates of an investor are

converted to an equivalent number of securities in electronic form and credited

into the investor's account with his/her DP.

B.Dematerializing securities (physical holding into electronic holding):-In order to dematerialize physical securities one has to fill in a DRF (Demat

Request Form) which is available with the DP and submit the same along with

physical certificates one wishes to dematerialize. Separate DRF has to be filledfor each ISIN Number. The complete process of dematerialization is outlined

below: Surrender certificates for dematerialization to your depository

participant. Depository participant intimates Depository of the request through

the system. Depository participant submits the certificates to the registrar of the

Issuer Company. Registrar confirms the dematerialization request from

depository. After dematerializing the certificates, Registrar updates accounts

and informs depository of the completion of dematerialization. Depository

updates its accounts and informs the depository participant. Depositoryparticipant updates the demat account of the investor.

C.Procedure for buying & selling dematerialized securities:-The procedure for buying and selling dematerialized securities is similar to the

procedure for buying and selling physical securities. The difference lies in the

process of delivery (in case of sale) and receipt (in case of purchase) ofsecurities.

A.In case of purchase:-1. The broker will receive the securities in his account on the payout day

2. The broker will give instruction to its DP to debit his account and credit

Investors account


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3. Investor will give Receipt Instruction to DP for receiving credit by filling

Appropriate form. However one can give standing instruction for credit

Into ones account that will obviate the need of giving Receipt Instruction every

time.

B.In case of sale:-The investor will give delivery instruction to DP to debit his account and credit

the brokers account. Such instruction should reach the DPs office at least 24

hours before the pay-in as otherwise DP will accept the instruction only at the

investors risk.

3.7 Investment:-

Investment means the use of money for the purpose of making more

money, to gain income or increase capital, or both.


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1) Short Term Investment2) Long Term Investment

1)Short Term Investment:It is more risky A successful short termtrading mindset instead requires iron discipline, intense focus and steely

devotion.Short term trading can be divided in 3 sections.

A. Day TradingB. Swing TradingC. Position TradingA. Day Trading:-

Day traders buy and sell stocks throughout the day in the hope that the

price of the stocks will fluctuate in value during the day, allowing them to

earn quick profits. A day trader will hold a stock anywhere from a few

seconds to few hours, but will always sell all of those stocks close of the

day. The day trader will therefore not own any position at the close of the

each day, and there is overnight risk. The objective of day trading is to

quickly get in and out of any particular stock for profits anywhere from few

cents to several points per share on an intra-day basis. Day trading can befurther sub-divided into number of styles, including.

I. Scalpers: This style of day trading involves the rapid and repeatedbuying and selling of a large volume of stocks within seconds or

minutes. The objective is to earn a small per share profit on each

transaction while minimizing the risk.

II. Momentum Traders: This style of day trading involves identifyingand trading stocks that are in a moving pattern during the day, in anattempt to buy stocks at bottoms and sell at tops.


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B. Swing Trading:-

The principal difference between day trading and swing trading is that swing

traders will normally have a slightly longer time horizon than day traders for

holding a position in a stock. As is the case with day traders, swing traders alsoattempt to predict the short term fluctuation in a stocks price. However swing

traders are willing to hold the stocks for more than one day, if necessary, to give

to stock price some time to move or to capture additional momentum in the

stocks price. Swing traders will generally hold on to their stock positions

anywhere from a few hours to several days.

Swing trading has the capability of providing higher returns than day trading.However, unlike day traders who liquidate their positions at the end of each

day, swing traders assume overnight risk. There are some significant risks in

carrying positions overnight. For example news events and earnings warnings

announced after the closing bell can result in large, unexpected and possibly

adverse changes to a stock's price

C. Position Trading:-

Position trading is similar to swing trading, but with a longer time horizon.

Position traders hold stocks for a time period anywhere from one day to several

weeks or months. These traders seek to identify stocks where the technical

trends suggest a possible large movement in price is likely to occur, but which

may not be fully played out for several weeks or months.

2) Long Term Investment:-

A successful long term trading mindset requires, above all, patience and

perseverance. These are more difficult attributes to develop in the average

trader. Too often the average short-term trader succumbs to the markets lure and

develops a frantic, get-it-now mindset believing every price blip represents a

trading opportunity. As this attitude is fanned by the media and brokerage

industry, more and more long term traders have become aggressive swing


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Broker:-

A broker is a member of a recognized stock exchange, who is permitted to dotrades on the screen-based trading system of different stock exchanges. He isenrolled as a member with the concerned exchange and is registered with SEBI.

Sub broker:-

A sub broker is a person who is registered with SEBI as such and is affiliated toa member of a recognized stock exchange.

A.Client Agreement Form:-This form is an agreement entered between client and broker in the presence of

witness where the client agrees (is desirous) to trade/invest in the securities

listed on the concerned Exchange through the broker after being satisfied of

brokers capabilities to deal in securities. The member, on the other hand agrees

to be satisfied by the genuineness and financial soundness of the client and

making client aware of his (brokers) liability for the business to be conducted.

B.Details of Client Registration form:-The brokers have to maintain a database of their clients, for which you have to

fill client registration form. In case of individual client registration, you have to

broadly provide following information:

1. Your name, date of birth, photograph, address, educational qualifications,occupation, residential status(Resident Indian/ NRI/others)

2. Unique Identification Number (wherever applicable)3. Bank and depository account details4. Income tax No. (PAN/GIR) which also serves as unique client code.5. If you are registered with any other broker, then the name of broker and

concerned Stock exchange and Client Code Number.

6. Proof of identity submitted either as MAPIN UID Card/PanNo./Passport/Voter ID/Driving license/Photo Identity card issued by

Employer registered under MAPIN


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C.For proof of address (any one of the following):-1. Passport

2. Voter ID

3. Driving license

4. Bank Passbook

5. Rent Agreement

6. Ration Card

7. Flat Maintenance Bill

8. Telephone Bill

9. Electricity Bill

10. Certificate issued by employer registered under MAPIN

11. Insurance Policy

Each client has to use one registration form. In case of joint names /family

members, a separate form has to be submitted for each person.

D.Unique Client Code:-In order to facilitate maintaining database of their clients, it is mandatory for all

brokers to use unique client code which will act as an exclusive identification

for the client. For this purpose, PAN number/passport number/driving

License/voters ID number/ ration card number coupled with the frequently used

bank account number and the depository beneficiary account can be used foridentification, in the given order, based on availability.

E.Maximum brokerage that a broker/sub broker can charge:-The maximum brokerage that can be charged by a broker has been specified in

the Stock Exchange Regulations and hence, it may differ from across various

exchanges. As per the BSE & NSE Bye Laws, a broker cannot charge more than

2.5% brokerage from his clients. This maximum brokerage is inclusive of the

brokerage charged by the sub-broker. Further, SEBI (Stock brokers and Sub


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brokers) Regulations, 1992 stipulates that sub broker cannot charge from his

clients, a commission which is more than 1.5% of the value mentioned in the

respective purchase or sale note.

F. Charges that can be levied on the investor by a stock broker/subbroker:-

The trading member can charge:

1. Brokerage charged by member broker.

2. Penalties arising on specific default on behalf of client (investor)

3. Service tax as stipulated.

4. Securities Transaction Tax (STT) as applicable.

The brokerage, service tax and STT are indicated separately in the contract note.

G.STT (Securities Transaction Tax):-Securities Transaction Tax (STT) is a tax being levied on all transactions done

on the stock exchanges at rates prescribed by the Central Government from time

to time. Pursuant to the enactment of the Finance (No.2) Act, 2004, the

Government of India notified the Securities Transaction Tax Rules, 2004 and

STT came into effect from October 1, 2004.

H.Rolling Settlement:-In a Rolling Settlement trades executed during the day are settled based on the

net obligations for the day. Presently the trades pertaining to the rolling

settlement are settled on a T+2 day basis where T stands for the trade day.

Hence, trades executed on a Monday are typically settled on the following

Wednesday (considering 2 working days from the trade day). The funds and

securities pay-in and pay-out are carried out on T+2 day.


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3.9 Auction:-

A.What Is An AUCTION?The Exchange purchases the requisite quantity in the Auction Market and gives

them to the buying trading member. The shortages are met through auction

process and the difference in price indicated in contract note and price received

through auction is paid by member to the Exchange, which is then liable to be

recovered from the client.

B.What happens if the shares are not bought in the auction?If the shares could not be bought in the auction i.e. if shares are not offered for

sale in the auction, the transactions are closed out as per SEBI guidelines. The

guidelines stipulate that the close out Price will be the highest price recorded in

that scrip on the exchange in the settlement in which the concerned contract was

entered into and up to the date of auction/close out OR 20% above the official

closing price on the exchange on the day on which auction offers are called for


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(and in the event of there being no such closing price on that day, then the

official closing price on the immediately preceding trading day on which

there was an official closing price), whichever is higher. Since in the rolling

settlement the auction and the close out takes place during trading hours, the

reference price in the rolling settlement for close out procedures would be taken

as the previous days closing price.

Sources:-www.nseindia.com

www.bseindia.com


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CHAPTER 4

DATA ANALYSIS

4.1 Fundamental Analysis

4.2 Economic Analysis

4.3 Company Analysis

4.4 Technical Analysis


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CHAPTER 4

DATA ANALYSIS

4.1 Fundamental Analysis:-

The investor while buying stock has the primary purpose of gain. If he invests

for a short period of time it is speculative but when he holds it for a fairly long

period of time the anticipation is that he would receive some return on his

investment. Fundamental analysis is a method of finding out the future price ofa stock, which an investor wishes to buy. The method for forecasting the future

behavior of investments and the rate of return on them is clearly through an

analyze of the broad economic forces in which they operate. The kind of

industry to which they belong and the analysis of the company's internal

working through statements like income statement, balance sheet and statement

of changes of income.


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4.2 Economic Analysis:-

Investors are concerned with those forces in the economy, which affect the

performance of organizations in which they wish to participate, through

purchase of stock. A study of the economic forces would give an idea about

future corporate earnings and the payment of dividends and interest to investors.

Some of the broad forces within which the factors of investment operate are:

A.Population: -Population gives an idea of the kind of labor force in a country. In some

countries the population growth has slowed down whereas in India and some

other third world countries there has been a population explosion. Populationexplosion will give demand for more industries like hotels, residences, service

industries like health, consumer demand like refrigerators and cars. Likewise,

investors should prefer to invest in industries, which have a large amount of

labor force because in the future such industries will bring better rates of return.

B.Research And Technological Developments: -The economic forces relating to investments would be depending on the amountof resources spent by the government on the particular technological

development affecting the future. Broadly the investor should invest in those

industries which are getting a large amount of share in the funds of the

development of the country. For example, in India in the present context

automobile industries and spaces technology are receiving a greater attention.

These may be areas, which the investor may consider for investments.

C.Capital Formation: -Another consideration of the investor should be the kind of investment that a

company makes in capital goods and the capital it invests in modernization and

replacement of assets. A particular industry or a particular company which an

investor would like to invest can also be viewed at with the help of the

economic indicators such as the place, value and property position of the

industry, group to which it 110ngs and the year-to-year returns through

corporate profits.


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4.4 Technical Analysis:-

Technical analysis is simply the study of prices as reflected on price charts.

Technical analysis assumes that current prices should represent all known

information about the markets. Prices not only reflect intrinsic facts, they also

represent human emotion and the pervasive mass psychology and mood of the

moment. Prices are, in the end, a function of supply and demand. However, on a

moment to moment basis, human emotionsfear, greed, panic, hysteria,

elation, etc. also dramatically effect prices. Markets may move based upon

peoples expectations, not necessarily facts. A market "technician" attempts to

disregard the emotional component of trading by making his decisions based

upon chart formations, assuming that prices reflect both facts and emotion.

Analysts use their technical research to decide whether the current market is a

BULL MARKET or a BEAR MARKET.

TECHNICAL ANALYSIS OF INDIAN STOCK MARKET BSESENSEX INDEX:-

The BSE SENSEX is not only scientifically designed but also based on globally

accepted construction and review methodology. First compiled in 1986,

SENSEX is a basket of 30 constituent stocks representing a sample of large,

liquid and representative companies. The base year of SENSEX is 1978-79 andthe base value is 100. The index is widely reported in both domestic and

international markets through print as well as electronic media. Technical

Analysis of Indian stock market BSE Sensex Index The Index was initially

calculated based on the "Full Market Capitalization" methodology but was

shifted to the free-float methodology with effect from September 1, 2003. The

"Free-float Market Capitalization" methodology of index construction is

regarded as an industry best practice globally. All major index providers like

MSCI, FTSE, STOXX, S& and Dow Jones use the Free-float methodology.Due to is wide acceptance amongst the Indian investors; SENSEX is regarded to

be the pulse of the Indian stock market. As the oldest index in the country, it

provides the time series data over a fairly long period of time (From 1979

onwards). Small wonder, the SENSEX has over the years become one of the

most prominent brands in the country.


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1 Day Technical Analysis Chart of Indian stock market BSE

Sensex Index

5 Day Technical Analysis Chart of Indian stock market BSE Sensex

Index
http://in.finance.yahoo.com/q?s=^bsesn&d=c&t=1dhttp://in.finance.yahoo.com/q?s=^bsesn&d=c&t=1d


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1 Year Technical Analysis Chart of Indian stock market BSE

Sensex Index

SOURCESWww.Equitymaster.Com

www.financialexpress.com
http://www.equitymaster.com/http://www.financialexpress.com/http://in.finance.yahoo.com/q?s=^bsesn&d=c&t=1yhttp://www.financialexpress.com/http://www.equitymaster.com/


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CHAPTER 5

CONCLUSION

Share market is a high risk-high reward, permanent source of long termfinance for corporate enterprises and short term earning for shareholders.The investors, who desire to share the risk, return and control associatedwith ownership of companies would invest in equity capital. Today, theIndian Equity Market is one of the most technologically developed in theworld and is on par with other developed markets abroad. The introduction

of on-line trading system, dematerialization, and introduction of rollingsettlement have facilitated quick trading and settlements which lead tolarger volumes.

NSE is the only stock exchange which covers majority equity investmentsevery day. Also equity capital market encourages capital formation in thecountry. The specific factor, which influences equity market, is theinvestors sentiment towards the stock market as a whole. So investor first

has to analyze and invest and not speculate in shares. The introduction ofonline trading has given a much-needed impetus to the Indian equitymarkets. In this technological world things are needed to move at a fasterpace, and with the introduction of methods of marketing securities in thestock exchange has expanded its business at a tremendous speed.

According to economic times, the research states the major reason behindthe irregularities of market (up and down in sale and purchase, price ofshare) is mainly because of forcasting mid set of equity investors. So, the

stock exchanges must disregards the emotional component of trading bymaking investors decisions based upon chart formations, assuming thatprices reflect both facts and emotion. And also by creating the awarenessof fundamental analysis (Fundamental analysis is a method of finding outthe future price of a stock, which an investor wishes to buy) among theinvestors to avoid the irregularities while trading. So to increase thevolume of equity investment, the stock exchanges should strive to increasetransparency, strictly enforce corporate governance norms, provide morevalue-added services to investors, and take steps to increase investorconfidence.


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Suggestion & Recommendation

Investment strategy:-

1. Dont invest more than 40% of your income.2. Intention (market) environment based selection of sector and in that sector

invest in powerful companies

3. Installment type investment like SIP4. Invest at every decline5. Invest for long term6.

Invest in Blue Chip Company with good management.

7. More investment, more money8. Invest in company which give good return to shareholder & have good

performance.

9. Invest in short term profit making companies.10.Take delivery and wait up to sufficient returnMistakes made by common investors:-

1. Buy when price of share is high2. Dont buy when price of share is low3. Purchase according to others views & tips4. Not buying in correction5. Buying speculative shares6. Buy at every upside and sell at every decline7. Invest money without understanding risk factor of sector and company8. Investors do not have patience.

Views for making money in stock market:-

1. Long term investment in powerful companies in recession time2. Buy in correction3. Avoid penny and speculative shares


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4. Buy at every decline and sell at every upside5. Give more time to your investment6. Invest your money systematically7. Study the companies, make your own policies for investment and do not fall

victim of fear and greed

8. To make money, take chances9. Buy shares when people sell and sell shares when people buy

Opinion reasons for this major correction:-

1. World recession2. Forth coming political elections3. Excessive rise of equities market in recent time4. Global financial crisis5. American subprime issue6. Lowest consumers and industrial demand7. Historical recession in world market8. Stock loss their trust in public9. Change in normal investors thinking regarding stock10.Inflation11.Foreign investor


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BIBLIOGRAPHY

Websites:-

1. www.nseindia.com2. www.indiainfoline.com3. www.equitymaster.com4. www.bseindia.com5. www.sebi.gov.in6. www.financialexpress.com7. www.investorword.com

8. www.businessdictionary.com
http://www.nseindia.com/http://www.indiainfoline.com/http://www.equitymaster.com/http://www.bseindia.com/http://www.sebi.gov.in/http://www.financialexpress.com/http://www.investorword.com/http://www.investorword.com/http://www.financialexpress.com/http://www.sebi.gov.in/http://www.bseindia.com/http://www.equitymaster.com/http://www.indiainfoline.com/http://www.nseindia.com/

Documents

Final Project on General Study on Indian Eqiuty Market