Transcript

SUMMER TRAINING PROJECT

TITLE: A PERCEPTUAL STUDY OF INVESTORS OF BATHINDA CITY REGARDING

INDIAN BOURSESUnder Guidance of:Mr. Pankaj Sharma Presented by:(Faculty,PCTE) Harish kumar Maheshwary MBA- 2(A)

INTRODUCTION TO BROKERAGE INDUSTRY The Indian Brokerage Industry consists of

companies that primarily act as agents for the buying and selling of securities (e.g. stocks, shares, and similar financial instruments) on a commission or transaction fee basis.

Security market has two main interdependent segments:

Primary Market Secondary Market

EVOLUTION OF INDIAN BROKERAGE MARKET

The Indian broking industry is one of the oldest trading industries that had been around even before the establishment of the BSE in 1875.

The equity brokerage industry in India is one of the oldest in the Asia region.

The roots of a stock market in India began in the 1860s during the American Civil War that led to a sudden surge in the demand for cotton from India resulting in setting up of a number of joint stock companies that issued securities to raise finance.

KEY PLAYERS IN BROKERAGE INDUSTRY India Infoline ICICI Direct Angel Broking Geojit HDFC Securities Kotak Securities Reliance Money Religare

CONTD….

Share Khan SBI Demat Motilal Oswal Anand Rathi Citi Bank Demat Karvy securities HSBC Invest Direct

RELIGARE ENTERPRISE LIMITED

Religare Enterprises Limited (REL) is a global financial services group promoted by the RANBAXY group.

The company was originally incorporated as Vajreshwari Cosmetics Private Limited on January 30, 1984.

The status of the Company was changed to a public limited company by a special resolution of the members dated July 14, 2006.

ISO 9001:2000 certified company.

VISION & MISSION

Vision: To build Religare as a globally trusted

brand in the financial services domain.Mission: Providing complete financial care

driven by the core values of diligence and transparency.

Organisational structure

COMPANIES UNDER RELIGARE ENTERPRISE LIMITED

RELIGARE COMMODITIES LIMITED Religare Commodities Limited (RCL), a wholly

owned subsidiary of Religare Enterprises Limited was initiated to spearhead Exchange based Commodity Trading.

As a member of NCDEX, MCX and NMCE, RCL is a trade facilitator providing the platform to trade in commodities.

Highly skilled and dedicated professionals strive to offer the client best investment solutions across the country.

CONTD…..

RCL caters to retail investors through its 529 branches across the country.

Revenues from broking in commodities segment increased 7% in the Q1 FY10 to Rs. 136.5 million as compared to Rs. 127.3 million.

At the end of the Q1 FY10 the number of cumulative client count in the commodity segment stood at 80,756 as compared to 66,468 in Q1 FY10

CONTD……

 Total no. of Employees in RCL as on September 30, 2009 were 823.

Religare Commodities Ltd. continues to be a leading broker in the commodity market. Gold, Copper and Crude account for the largest volume drivers of the business

PRODUCTS & SERVICES

Trade in Commodity Future Corporate Desk Spot Exchange Currency Futures

SWOT ANALYSIS

Strengths It is a Ranbaxy promoter Group

Company. Provides multi-channel access to all its

customers through a strong network of 529 branches in 130 cities and a call-center based Dial-n-Trade facility.

Dedicated Research Team.

Weaknesses Localized presence due to insufficient

investments for countrywide expansion. Lack of awareness among customers. Lesser emphasis on customer retention. Focuses more on HNIs than retail

investors which results in meager market-share as compared to close competitors.

Opportunities It Can easily tap the retail investors with

small saving through promotional channels like print media, electronic media, etc.

More and more small investors are entering into commodity market.

Increasing usage of Internet through broadband connectivity may boost a whole new breed of investors for trading in securities.

Threats Aggressive promotional strategies by close

competitors may hamper Religare’s acceptance by new clients.

Lack of sufficient branch-offices for speedy delivery of services.

More and more players are venturing into this domain.

Current market condition is very bad, so its not easy to convince clients to trade in commodity market.

TITLE

A PERCEPTUAL STUDY OF

INVESTORS OF BATHINDA CITY REGARDING INDIAN BOURSES

OBJECTIVES

To understand the relative importance of different factors affecting investments in Indian Bourses.

To study problematic areas in the administration of the Indian Bourses.

To know the awareness regarding selective parameters of Indian Bourses of investors of Bathinda city.

RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problems.In it we study the various steps that are generally adopted by a researcher in studying his research problem along with logic behind them.

Scope of the project : This research has been conducted in

Bathinda City on those respondents who have been investing in Indian Bourses.

ResearchDesign : Descriptive Design

Method of Data collection : Primary Data

Secondary Data Sample Design : Universe Population Sample Size Sampling Unit Sampling Technique

LIMITATIONS OF THE STUDY

The sample size was limited. Time has played a biggest constraint that the

research could not be carried out comprehensively as the duration of the study was only 6 weeks

The investors may be biased. Study is done only for Bathinda investors. As the project is also based on secondary data,

possibility of unauthorized information cannot be avoided.

Close responses.

DATA ANALYSIS AND INTERPRETATION

4.1 Investors who keep regular eye on Indian Bourses.(N=50)

Yes No0

10

20

30

40

50

60

25 25

50 50

No. of Respondents

Percentage

4.2 CATEGORY OF THE INVESTORS.

Short Term Medium Term

Long term0

5

10

15

20

25

30

35

40

45

19 20

11

3840

22No. of RespondentsPercentage

N=50

4.3 PERCEPTION ABOUT INDIAN BOURSES

Optimistic Pessimistic Neutral0

10

20

30

40

50

60

70

80

90

41

4 5

82

810

No. of RespondentsPercentage

N=50

4.4 PERCEPTION ABOUT SPECULATIVE ACTIVITIES IN THE INDIAN BOURSES

Yes No No comment0

10

20

30

40

50

60

70

30

8

12

60

16

24

No. of RespondentsPercentage

N=50

4.5 AWARENESS LEVEL ABOUT THE INDIAN BOURSES

Highly aware Somewhat aware Neutral Somewhat Unaware

Highly unaware 0

2

4

6

8

10

12

14

16

18

20

10

1817

15

0

No. of Respondents

N=50

4.6 RELATIVE IMPACT OF THE FACTORS ON THE INDIAN BOURSES

153

109

189

189

110

Sum of Ranks

GDP of IndiaRBI PoliciesInflationIIP IndexWorld economy

N=50

4.7 RELATIVE IMPORTANCE OF FACTORS WHICH IMPACT INVESTMENT MOST

103

65

138

194

Sum of Ranks

DividendWealth max.Bonus gainFPO gain

N=50

4.8 PERCEPTION REGARDING SENSEX(BSE) LEVEL IN 1 YEAR

Below 15000 15000-18000 18000-22000 Above 220000

10

20

30

40

50

60

70

03

17

30

0

6

34

60

No. Of RespondentsPercentage

N=50

4.9 RESPONSE TOWARDS PRIVATIZATION IN THE ADMINISTRATION OF INDIAN BOURSES

Agree Neutral Disagree0

5

10

15

20

25

21

17

12No. of Respondents

N=50

4.10 SATISFACTION LEVEL REGARDING SEBI’S ROLE IN INDIAN BOURSES

Highl

y Sa

tisfie

d

Som

ewha

t Sat

isfied

Neutra

l

Som

ewha

t Dissa

tisfie

d

Highl

y Dis

satis

fied

0

5

10

15

20

25

10

20

13

7

0

No. of Respondents

N=50

4.11 LESSON LEARNT BY INDIAN BOURSES FROM RECENT WORLD FINANCIAL CRISIS

Soun

d Ban

king

Pra

ctices

Contro

lled

Deriv

ativ

e Mar

kets

Limite

d In

vest

men

t by

Indi

an C

o’s In

Abr

oad

FDI s

houl

d be

giv

en M

ore

Prio

rity

than

FII

0

5

10

15

20

25

30

35

15 15 15

5

30 30 30

10

No. of RespondentsPercentage

N=50

4.12 PROBLEMS FACED BY THE INVESTORS

Full Disclosure by the companies

Fact Findings Legal Hearing by the Law

Any Other None0

5

10

15

20

25

30

35

12

15

9

0

14

24

30

18

0

28

No. of RespondentsPercentage

N=50

4.13 PERCEPTION REGARDING ALLURING INVESTORS BY THE COMPANIES USING DIFFERENT TOOLS

Yes No No comment0

10

20

30

40

50

60

70

80

90

42

62

84

12

4

No. of RespondentsPercentage

N=50

FINDINGS

Investors are not very particular about the regular activities of the Indian Bourses.

Most Investors are of Short term In Investing in Indian Bourses.

Investors are Optimistic about the Bourses upper side trend.

Investors are very skeptical in investing and they are of view that there is speculation in the Indian Bourses.

CONTD…

Investors give most importance to RBI policies and World Economy while investing.

Almost all investors are investing with prior motive of Wealth maximization.

Mostly small investors are of bull in nature.

Investors are satisfied with the present administration of the Indian Bourses.

CONTD……

Investors are of view that World Economic crisis has strengthen the Indian Bourses.

Investors are of view that they face problems regarding companies' information.

Investors are of view that companies use different tools to shoot up their stock prices

CONCLUSION

Investors today are much aware about the administration of Indian Bourses, they take market sentiments into consideration before taking decision to invest because they want security and safety of investment principle in the long term as well as short term. Investors generally prefer to invest money for short term with the aim of wealth maximization. They are very skeptical in nature and they want to investigate all the information before investing.

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