Religare Learning

8/6/2019 Religare Learning

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Investors behavior in equity market

1. EXECUTIVE SUMMARY

RELIGARE is a premier integrated financial service provider and is ranked among the topin the country in all its business segments. It provides services over 75,000 individualinvestors in various capacities and provides investor services to over 500 corporate.

The present project titled A study on Investors attitude towards equity market wasconducted on behalf of RELIGARE at Bangalore. This study was aimed to know the preinvestment and post investment behavior of the investor in the equity market.

The research methodology adopted in this research work is descriptive type. The secondarydata are obtained from newspapers, text books, websites and various journals. The researchaimed to make an attempt to understand the behavior of the investors towards the equitymarket and its products.

In the research we have been using techniques such has Technical analysis and

fundamental analysis to help them decide on the stock investment patterns. They alsocontinuously monitor their investments and take decisions whether to continue to hold or dispose off their stocks.

The survival and viability of broking companies largely depends on the efforts made themto minimize its cost and enhance operational efficiency. RELIGARE can achieve the top

players position in the market provided it concentrate more on quality of services andattracting more investors. By doing so it will be in a position to perform better and also

meet the requirement of its investors.

Page 1 JSSATE, DEPT OF MANAGEMENT, BANGALORE.


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PART-A1. INDUSTRY PROFILE

History of the Stock Market

Stock markets refer to a market place where investors can buy and sell stocks.

The price at which each buying and selling transaction takes is determined by the market

forces (i.e. demand and supply for the particular stock. Indian Stock Markets are one of

the oldest in Asia. Its history dates back to nearly 200 year ago. The earliest records of

security dealing in India are meager and obscure.

By 1830s business on corporate stocks and shares in Bank and Cotton presses

took place in Bombay. Though the trading list was broader in 1839, there were only half

a dozen brokers recognized by banks and merchants during 1840 and 1850. The 1850s

witnessed a rapid development of commercial enterprise and brokerage business attracted

many men into the field and by 1860 the number of brokers increased into 60.

In 1860-61 the American Civil War broke out and cotton supply from United

States of Europe was stopped; thus, the Share Mania in India begun. The number of

brokers increased to about 200 to 250. However, at the end of the American Civil War, in

1865, a disastrous slump began ( for example, Bank of Bombay Share which had touched

Rs 2850 could only be sold at Rs.87 ). At the end of the American Civil war, the brokers

who thrived out of Civil War in 1874, found a place in a street (now appropriate called as

Dalal Street where they would conveniently assemble and transact business.

In 1887, they formally established in Bombay, the Native Share and Stock

Brokers association (which is alternatively known as The Stock Exchange). In 1895,

the Stock Exchange acquired a premise in the same street and it was inaugurated in 1899.

Thus, the Stock Exchange at Bombay was consolidated.



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Thus in the same way, gradually with the passage of time number of exchange were

increased and at currently it reached to the figure of 24 stock exchange. A person holdingassets (securities/funds), either to meet his liquidity needs or to reshuffle his holding in

response to change in his perception about risk and returns of the assets, decides to buy or

sell the securities. He selects a broker and instructs him to place buy/sell order on an

exchange. The order is converted to a trade as soon as it finds a matching sell/buy order. At

the end of the trade cycle, the trades are netted to determine the obligation of the trading

members securities/funds as per settlement cycle. Buyers/ seller delivers funds/securities

and receives securities /fund as per settlement cycle. Buyer/seller delivers funds /securities

and receives securities/funds and acquires ownership of the securities.

A securities transaction cycle is presented above. Just because of this Transaction

cycle, the whole business of securities and stock broking, the business of Online Stock

broking/ Online Trading/E-Broking has emerged.

Milestone of the Indian stock market:

One of the oldest stock markets in Asia, the Indian Stock Markets has a 200 years old

history.

Post Independence Scenario:

18 century East India company was the dominant institution and by end of the century

business in its loan securities gained full momentum

1880s Business on corporate stocks and shares in bank and cotton presses started in

Bombay. Trading list by the end of 1839got broader

1840s Recognition from banks and merchants to about half a dozen brokers.

1850s Rapid development of commercial enterprise saw brokerage business attracting

more people into the business

1860-61 The American civil war broke out which caused a stoppage of cotton supply from

united state of America. Marking the beginning of the share mania in India



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1862-63 The number of brokers increased to about 200 to 250

1865 A disastrous slump began at the end of the American civil war (as an example. Bank

of Bombay share which had touched Rs2850 could only be sold at Rs 87)

Pre-Independence Scenario - Establishment of Different Stock Exchanges

1874s with rapidly developing share trading business, brokers used together at a street

(now well known as Dalal Street ) for the purpose of transacting business.

1875s The native share and stock brokers association (also known as the Bombay Stock

Exchange) was established in Bombay

1880s Development of cotton mills industry and setup of many others

1894s Established of the Ahmadabad share and stock brokers association.

1880-90s Sharp increase in share prices of jute industries in 1870s was followed by a

boom in tea stocks and coal.

1908s The Calcutta stock exchange association was formed.

1920s Madras witnessed boom and business at The madras stock exchange was

transacted with 100 brokers.

1923 When recession followed number of brokers comes down to 3 and exchange wasclosed down.

1934 Establishment of the Lahore stock exchange

1936 Merge of the Lahore stock exchange with the Punjab stock exchange

1940 Uttar Pradesh stock exchange Ltd and Nagpur stock exchange Ltd was established

1944 Establihment of The Hyderabad stock exchange Ltd

1947 Delhi stock and share brokers association Ltd and The Delhi stock and share

exchange Ltd were established and later on merged into The Delhi stock exchange

association Ltd.

The depression witnessed after the Independance led to closure of a lot of

exchanges in the country. Lahore Stock Exchange was closed down after the partition of

India, and later on merged with the Delhi Stock Exchange. Bangalore Stock Exchange

Limited was registered in 1957 and got recognition only by 1963. Most of the other



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Exchanges were in a miserable state till 1957 when they applied for recognition under

Securities Contracts (Regulations) Act, 1956. The Exchanges that were recognized under

the Act were:

1. Bombay 2. Delhi

3. Calcutta 4. Hyderabad

5. Madras 6. Bangalore

7. Ahmadabad 8. Indore

Many more stock exchanges were established during 1980's, namely:

1. Cochin Stock Exchange (1980)

2. Uttar Pradesh Stock Exchange Association Limited (at Kanpur, 1982)

3. Pune Stock Exchange Limited (1982)

4. Ludhiana Stock Exchange Association Limited (1983)

5. Gauhati Stock Exchange Limited (1984)

6. Kanara Stock Exchange Limited (at Mangalore, 1985)

At present, there are twenty one recognized stock exchanges in India which does not

include the Over The Counter Exchange of India Limited (OTCEI) and the National Stock Exchange of India Limited (NSEIL).

Government policies during 1980's also played a vital role in the development of

the Indian Stock Markets.

Indian stock exchange allows a member broker to perform following activities:

1. Act as an agent,

2. Buy and sell securities for his clients and charge commission for the same,3. Act as a trader or dealer as a principal,

4. Buy and sell securities on his own account and risk.

TYPES OF STOCK MARKET

1. National stock exchange



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2. Bombay stock exchange

1. National stock exchange:

In order to lift the Indian stock market trading system on par with the international

standards. On the basis of the recommendations of high powered Pherwani Committee, the

National Stock Exchange was incorporated in 1992 by Industrial Development Bank of

India, Industrial Credit and Investment Corporation of India, Industrial Finance

Corporation of India, all Insurance Corporations, selected commercial banks and others.

NSE provides exposure to investors in two types of markets, namely:

Wholesale debt market.

Capital market.

Wholesale Debt Market - Similar to money market operations, debt market operations

involve institutional investors and corporate bodies entering into transactions of high value

in financial instruments like treasury bills, government securities, commercial papers etc.

Trading at NSE

1. Fully automated screen-based trading mechanism

2. Strictly follows the principle of an order-driven market

3. Trading members are linked through a communication network

4. This network allows them to execute trade from their offices

5. The prices at which the buyer and seller are willing to transact will appear on the

screen

6. When the prices match the transaction will be completed

7. A confirmation slip will be printed at the office of the trading member

Advantages of trading at NSE

1. Integrated network for trading in stock market of India

2. Fully automated screen based system that provides higher degree of transparency

3. Investors can transact from any part of the country at uniform prices



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Financing: One of the primary advantages of listing on the BSE is the ease of

financing by raising additional capital in the capital markets.

Media attention: Listing on the BSE is accompanied by particularly significant

attention from the local media, according to experience, in comparison with listing

on other exchanges;

Liquidity: In an international comparison, the BSE offers considerable market

liquidity;

Heightened consumer awareness and confidence: Presence on the BSE improvesconsumer awareness and confidence and improves company marketability and

recognition;

Visibility: Listing on the BSE ensures greater visibility in comparison with listing

on larger foreign stock markets;

Index membership and the associated additional demand for equity: A

company that might be considered mid-cap at best on a foreign market could beconsidered a leading equity on the BSE, and as such would likely be included in the

BUX, the BSEs main equity index. This is in contrast to listing on a foreign

market, where the conditions for inclusion in a main index usually cannot be

fulfilled. Considering that domestic institutional investors typically invest pooled

funds into a portfolio with the same weighting as the BUX index, this undoubtedly

creates additional demand for the shares of the company;

High ratio of foreign investors: Foreign investors have a strong presence on theHungarian stock market, representing about 70-80% of the BSEs equity

capitalisation and its turnover. Foreigners can therefore trade shares on the BSE as

easily as on any other large foreign market;



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Allowances in equity listing fees: The BSE waives all listing fees in case of equity

listings. As an additional incentive, the BSE also waives listing maintenance fees in

the quarter when the equity listing takes place and in the quarter that follows.

2. COMPANY PROFILE

A. Background and inception of the company

Our Company was originally incorporated as Vajreshwari Cosmetics Private

Limited on January 30, 1984.For details on our Promoters, see the sections titled Our

Promoters and Promoter Group and Our Management beginning on pages 105 and 92,respectively the name of our Company was subsequently changed to Religare Enterprises

Private Limited pursuant.

To a special resolution of our shareholders dated January 10, 2006. The fresh

certificate of incorporation consequent to the change of name was granted to our Company

on January 31, 2006, by the Registrar of Companies, Punjab, and Himachal Pradesh &

Chandigarh at Jalandhar.

The status of our Company was changed to a public limited company by a special

resolution of the members dated July 14, 2006. The fresh certificate of incorporation

consequent to the change of name was granted to our Company on August 11, 2006, by the

Registrar of Companies, NCT at New Delhi.

At the time of incorporation, the main object of our Company was to purchase,

sell, import, export, manufacture, pack, replace or otherwise deal in all types of tooth paste,

tooth brush, face powder, face cream and other cosmetics.

Religare is an emerging markets financial services group with a presence across

Asia, Africa, Middle East, Europe, and the Americas. In India, Religares largest market,

the group offers a wide array of products and services including broking, insurance, asset

management, lending solutions, investment banking and wealth management. With



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10,000-plus employees across multiple geographies, Religare serves over a million clients,

including corporate and institutions, high net worth families and individuals, and retail

investors.

Trading in Equities with Religare truly empowers you for your investment needs.

We ensure you have a superlative trading experience through -

A highly process driven, diligent approach

Powerful Research & Analytics and

One of the "best-in-class" dealing rooms

Further, Religare also has one of the largest retail networks.

The Religare Edge

Pan India footprint

Powerful research and analytics supported by a pool of highly skilled research

analysts

Ethical business practices

Offline/Online delivery models

Single window for all investments needs through your unique Customer Relationship Number



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B. NATURE OF BUSINESS CARRIED

Religare Enterprises Ltd . is an India based financial services company with

operations around the globe. Commonly referred to as Religare, the company offers a

range of financial services through its group companies. The services offered include

broking, insurance, asset management, lending solutions, investment banking and wealth

management. Serving over a million clients, Religare has around 15 billion dollars of

assets under management.

The Religare group of companies includes Religare Capital Markets, Religare

Securities, Religare Broking, Religare Online, Religare Invest, Religare Finmart, Religare

Insurance, Religare Health Insurance, Aegon Religare, Religare Mutual Funds, Religare

Macquire, and Milestone Religare.

Timeline of the company

2006

Religare inks pact with AEGON, set up AMC, enter insurance Religare gets licence for merchant banking

2007

Religare seeks mandate to invest in realty

Religare launches new online trading portal IndusInd Bank ties up with Religare, to offer online trading

Religare plans IPO of 11.36 cr Religare Arts initiative to help promote galleries, artists

2008



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Religare to sell stake in NBFC arm for Rs 500 cr

Religare Finvest gets top ICRA rating

Religare-Aegon AMC gets in-principle nod Indias first regulated film fund set to make entry, Religare in pact with Vistaar on

Rs. 200 crore

Religare to buy UK's Hichens for Rs 396 cr

2009

Religare Bags LIPPER-STARMINE Award Religare MF announces dividend

Aegon Religare entering into health insurance space

Religare, NTT Europe launch online trading

2010 Religare in pact with Bank of Maharashtra for online trading

Religare takes Northgate stake in investment push Religare Voyages plans to tap air-ambulance segmet



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C. Vision, Mission and Quality Policy

Vision

To be India's first Multinational providing complete financial services

solution across the globe.

MISSION

Providing integrated financial care driven by the relationship of trust and

Confidence .

QUALITY POLICY



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We are committed to being the leader in providing world class product and

services which exceed the expectation of our customers achieved by

teamwork and a process of continuous improvement.

D. Products and Service Profile

RELIGARE PRODUCT DETAILS:-

Equity Gold

Derivatives

Mutual fund

Commodity Trading

SERVICES OF THE COMPANY

Depositary services

Marginal financing

Mutual fund distribution

Portfolio Management Scheme

Stock trading.



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E. Area of Operation Global /National/Regional

GLOBAL

NATIONAL

New Delhi Tamil Nadu

Mumbai Kolkata

Pune Gujarat

Chennai Ahmadabad

Regional

Bangalore Mysore Hubli Mangalore Belgum


New York South Africa United kingdom Japan

Brazil Dubai Sri lanka Singapore


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F. Ownership Pattern

Central Leadership Team Board of Directors - Religare Enterprises

Limited

Mr. Sunil Godhwani

Chairman and Managing Director,

Religare Enterprises Limited

Mr. Shachindra Nath

Group CEO, Religare EnterprisesLimited

Mr. Anil Saxena

Group CFO, Religare Enterprises

Limited

Mr. Sunil Godhwani

Chairman and Managing Director

Mr Shachindra Nath

Group CEO Mr. Anil Saxena

Group CFO Mr. Harpal Singh

Non Executive Director Mr . Deepak Ramchand Sabnani

Independent Director

Ms . Kathryn Matthews


Mr . Padam Bahl


Mr. J. W. Balani


http://www.religare.in/OurLeaders.asphttp://www.religare.in/OurLeaders.asphttp://www.religare.in/OurLeaders.asp#sunilhttp://www.religare.in/OurLeaders.asp#shivinderhttp://www.religare.in/OurLeaders.asp#shivinderhttp://www.religare.in/OurLeaders.asp#harpalhttp://www.religare.in/OurLeaders.asp#Deepakhttp://www.religare.in/OurLeaders.asp#Kathrynhttp://www.religare.in/OurLeaders.asp#Padamhttp://www.religare.in/OurLeaders.asp#Balanihttp://www.religare.in/OurLeaders.asphttp://www.religare.in/OurLeaders.asphttp://www.religare.in/OurLeaders.asp#sunilhttp://www.religare.in/OurLeaders.asp#shivinderhttp://www.religare.in/OurLeaders.asp#shivinderhttp://www.religare.in/OurLeaders.asp#harpalhttp://www.religare.in/OurLeaders.asp#Deepakhttp://www.religare.in/OurLeaders.asp#Kathrynhttp://www.religare.in/OurLeaders.asp#Padamhttp://www.religare.in/OurLeaders.asp#Balani


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G. Competitors Information

ICICI WEB TRADE LTD. (ICICIdirect.com):

ICICIdirect.com was the first entrant e-broking. ICICIdirect.com provides the 3-in-1

to the users which ties in their saving bank account and their Demat account to their

brokerage account electronically. This integration ensures that money is transferred

to/from their bank account and the shares are transferred from/to their Demat account

automatically without writing any cheques or transfer instructions while carrying out

their trades in shares.ICICIdirect.com has the option of trading in share in cash, margin

or spot segment. An investor can also invest in 14 Mutual Funds through their trading

account.

India Info line Ltd:

5paisa is the trade name of India Infoline Securities Private Limited (5paisa),

member of National Stock Exchange and The stock Exchange, Mumbai. 5paisa is a

wholly owned subsidiary of India Infoline Ltd, Indias leading and most popular financeand investment portal. 5paisa has emerged as one of leading player e-broking space in

India.

KOTAK SECURITES LIMITED (kotakstreet.com):



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Kotak Securities Ltd, a strategic joint venture between Kotak Mahindra Bank and

Goldmen Sachs (holding 25%-one of the worlds leading investment banks and

brokerage firms) is Indias leading stock broking house with a market share

Of 5 -6 % Kotak Securities Ltd. Has been largest in IPO distribution It was ranked

number one in 2003-04 as Book Running Lead Manager in public equity offering by

PRIME Database. It has also won the Best Equity Award from Finance Asia April

2004.

India Bulls:

India bulls are Indias leading retail financial services company with 77 locations

spread across 64 cities. Its size and strong balance sheet allows providing varied products

and services at very attractive prices, our over 750 Client Relationship Manager are

dedicated to serving your unique needs. India bulls is lead by highly regarded

management team that has invested crores of rupees into a world class Infrastructure that

provides real-time services & 24/7 access to all information and products. The India bulls

Professional Network

MOTILAL OSWAL SECURITIES LTD. (MOSt):

One of the top-3 stock-broking in India, with a dominant position in both

institutional and retail broking, most is amongst the best-capitalized firms in the broking

industry in terms of net worth. MOSt was founded in 1987 as a small sub-broking unit,

with just two people running the show. Focus on customer- first - attitude, ethical and

transparent business practices, respect for professionalism, research- based value

investing and implementation of cutting-edge technology have enabled it to blossom into

a thousand-member team.

HDFC SECURITIES LTD :



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HDFCsec is a brand brought to you by HDFC Securities Ltd, which has been

promoted by the HDFC Bank & HDFC with the objective of providing the diverse

customer base of the HDFC Group and other investors a capability to transact in the Stock

Exchange & other financial market transaction. The services comprises online buying &

selling of equity shares on the national stock exchange (NSE).Buying & selling of select

corporate debt and government securities on the NSE would be introduced in a subsequent

phase.

UTI SECURITIES LTD: (UTISEL)

UTI Securities Ltd was incorporated on June 24, 1994 by Unit Trust of India as a

100% subsidiary and on the repealing of the UTI Act, the capital is now held by the

Administrator of the Specified Undertaking of Unit Trust of India (ASUUTI). UTI

Securities has been working as an independent professional entity for providing financial

intermediary and advisory services to its corporate and retail clientele.

IDBI Capital Market Services Ltd:

IDBI Capital is a leading Indian securities firm offering a complete suite of products &

services to individual, institutional and corporate clients.IDBI Capital Market Services Ltd.

(IDBI Capital), a wholly owned subsidiary of Industrial Development Bank of India

(IDBI), is a leading Indian securities firm, offering a complete suite of products and

services to individual, institutional and corporate clients.

H. Infrastructural Facilities Offices

The company has offices located at prime location in Mumbai, New Delhi, Kolkatta and

Chennai. The offices are centrally located to cater to the requirements of institutional and



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17 corporate clients and retail clients, and for ease of operation due to proximity to stock

exchange and banks. Today we have more than 170 branches all over India.

Communications

The company has its disposal, an efficient network of advance communication system and

intend

to install CRM facilities, besides this it is implementing interactive client information

dissemination system which enable clients to view there latest client information on web. It

has an installed multiple WAN to interconnect the branches to communicate on real time

basis. The company is equipped with most advanced system to facilitate smooth functioning

of Operations. It has installed its major application on IBM machine and uses latest state of art.

I. Achievement and Award

Religare Wins Award For Brand Excellence In Banking And Financial

Services .

Religare won the award for Brand excellence in the Banking and Financial services

category at The World Brand Congress 2009 held in Mumbai on 4th and 5th Nov 2009.

Religare emerged as a winner amongst other corporate giants nominated for the same

category.

Religare securities equity broking -subsidiary has won an award from D&B for

the "best broking house-with a global presence"

At the recently concluded CEO CLUBS INTERNATIONAL AWARDS, Mr.

Sunil Godhwani was conferred the CEO of the year Award. The award ceremony washeld at The Grand Midwest Tower Hotel, Dubai where Mr. Amarnath (President, GCC

Operations) collected the award on behalf of Mr. Godhwani.

Religare Securities Limited received the LIPPER-STARMINE broker award

for "Earnings Estimates in Midcap Research for 2008" . The Lipper - StarMine Awards



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organized by Thomson Reuters, for Asset Management and sell-side broking Companies in

India. The awards recognize analysts who are more accurate than their peers in forecasting

earnings, awarding credit to those who demonstrate an ability to make accurate estimates

earlier than their peers.

Religare Enterprises Limited wins Excellence Award sponsored by Institute of

Economic Studies at Indian Habitat Centre.

Religare online emerged as Indias most user friendly website . In a consumer

research conducted by leading independent online research and advisory organization

JuxtConsult, the lucid user interface of Religare online emerged as overall winner in the

Online Financial Info category.

J. Work flow model (End to End)

With our unique Business model, we have different services to suit different

people. From Remisers to Trainee, Entrepreneurs to Associates and Agents, we have

services providing everyone with numerous benefits and in keep growing in a profitablecollaboration.

Remisiers:

Partner with Religare, start your own venture and leave it to us to support you with

essential business requisites. We will provide the necessary infrastructure, technical and



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marketing support, operation backing and research, while you can back this whole system

with your clients.

As a remisier, following benefits are provided:

No commercial space required.

No start-up capital needed.

Marketing support is provided.

Technological support to associates.

Access to all financial products.

Agents:

Ideal programmer suited to those who want to work freelancers, for people who

wants to work for themselves and possess that grit and self confidence coupled with

business acumen. Its a perfect platform to realize your dreams.

Benefits:

No commercial space required.

No start-up capital needed.

Marketing support is provided.

Technological support to associates.

Access to all financial products

Trainee:

We at Religare have designed a unique programme to mould the great

entrepreneurs of tomorrow. We provide you with a complete trading in all the financial

aspects, business development, and back office operations, marketing and research,trading,

Associate:

Religare treats their associates as their own providing innumerable benefits and a strong

support.



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Operation Support: Centralized real time monitoring and control system with in

built system driven alerts and controls to support branch and client level exposuresand margin factors.

Back office Support: User friendly back office support system, with real time

updates for clients as well as associates.

IT and Connectivity Support: Access to world class technology.

Product Support: Opportunity to offer wide range of products.

Research Support: In-house research team that caters to all clients for premium

quality research & advisory support.

Detailed Research Reports and Market tips.

Real time access to research analysis and reports via Web portal.

K.FUTURE GROWTH ; 200000PLUS Retail customers being serviced through centralized call centre /web

solution

150branches/semi branches servicing affluent/aggressive traders through highly

skilled financial advisors

Their target is to have 350 branches and 1000business partners in 300 cities of

India

Strong advisory role through fundamental and technical research



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3. MCKENSYS 7S FRAME WORK

1

. STR

A TE

G Y:

In

modern times the word strategy has found its way into the management field. In the



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context of a business concern, strategy indicates specific program of action for achieving

the organization objectives by employing the firms resources efficiently and

economically. It involves preparing oneself for meeting unforeseen factor. It is also

concerned with meeting the challenges posed by the policies and actions of other

competitors in the market.

2.STRUCTURE:

Organization Structure:

National sales marketing Head

Vice President-Investment Vice President Sales

Assistant Vice President-Investment Assistant Vice president-Sales

Zonal Manager Investment Regional Sales-Head

Senior Investment Manager Branch Manager

Manager Investment Team Leader



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Relationship Manager

Associated Relationship Manager

Asst Relationship Manager

Relationship Executive

2. SYSTEM:

RELIGARE covers the entire spectrum of financial services such as Stock broking,

Depository Participants, Distribution of financial products - mutual funds, bonds, fixed

deposit, equities, Insurance Broking, Commodities Broking, Personal Finance Advisory

Services, Merchant Banking & Corporate Finance, placement of equity, IPOs.

3. STYLE:

An activity like forecasting and planning are made by top level managers. Major

policies and plans are made by top management and it is implemented and administered by

employees. In the organization the style of informal communication and meetings with

employees has created workers to a friendly environment .

4. STAFF:

The staff of Mckinsys 7S framework includes the human resource management, rewards

and recognition. The main strength of India Religare is its research teams efficiency and

team work of the employees.Staff of Religare as follows:

Regional manager Branch Manager

Sales Manager

5. SKILLS:



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The managers and workers in each department are skilled to the extent of functions

they perform. Directors of the company are skilled in every activities and disciplines of

organization.

A 1600 team of highly qualified and dedicated professionals drawn from the best of

academic and professional backgrounds are committed to maintaining high levels of client

service delivery. This has propelled RELIGARE to a position among the top distributors

for equity and debt issues with an estimated market share of 15% in terms of applications

mobilized, besides being established as the leading procurer in all public issues.

6. SHARED VALUES:

Shared values refer to a set of values & aspirations that goes beyond the conventional

formal statement of corporate objectives. Culture of an organization is usually determined

by some of the value benefits and working practices that exist within an organization

operational standard.

4. SWOT analysis

A SWOT analysis focuses on the internal and external environments, examining

strengths and weaknesses in the internal environment and opportunities and threats in the

external environment

STRENGTHS

Services

Services like online trading facility, institutional and domestic broking, customized

research reports with almost 80% efficiency etc give Religare an edge over its competitors.

SMS alerts, Softer, intangible features like imagery, equity driving preference.

Relationship managers



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The company has a team of relationship managers who are dedicated to the service

of clients. This RMs takes care of clients even smallest problem and makes efforts to

solve them through their expertise. They also help their clients to invest their wealth in the

market.

Distribution Network

Religare with almost 150 branches beefed up by comprehensive online research,

advice and transaction services. In near future expect to make 200000+ retail customers

being serviced through centralized call centre / web solution.

Marketing

Religare (previously Fortis securities) is a veteran equities solutions company

with loads of experience in the Indian stock markets. Religare does not claim expertise in

too many things.. So when we says that investing in stocks should not be confused with

trading in stocks or a portfolio-based 78 strategy is better than betting on a single horse, it

is something that is spoken with years of focused learning and experience in the stock

markets.

Products

Companys product line is a basket of financial services offered to its clients. Its a

all product single shop for investors. Here we offer Along with Equity, Mutual funds,

personal loans, PMS, Corporate Finance and Investment banking etc to our customers. Our

products are customized according to individual demand and preference

WEAKNESS

Customer Satisfaction

As far as customer satisfaction goes Religare has to tighten its Boots. The company

does not have enough Relationship managers to cater to huge customer base. The account

opening takes 2 working days whereas an India bull takes half the time for this purpose.



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Branding

Though the company has a efficient products but large part of investment interested

population does not know the company. The most basic expectation for a trader or investor

when one begins trading is that one must get timely delivery of shares and proceeds from

sale of shares.

Competition from banks and Niche Players

Most of the banks due to good branding have the faith of the customers of their

banking database. So they enjoy the liberty of huge database and customers find it more

reliable to trade their rather than with a unknown broker.

OPPORTUNITIES

The external environment analysis may reveal certain new opportunities for profit and

growth.

Ever-increasing market

After the NSE brought the screen based trading system stock markets are now more

secured which has attracted lot of retail investors and the demand is increasing day by day.This has resulted in improved liquidity and heavy volumes on transactions. Religare is one

of the early80 entrants here. As to how much it will roar and how swift it can swoop on the

market, the future alone can answer such queries.

Improving Technology

In country like India technology is always improving which gives the company a

chance to keep on improving their product with time whereas for the small players like

local brokers it will be difficult to keep the same pace as the changing technology. Alsowith SEBI lying down some strict guidelines small brokers are finding it harder to retain

the customers with no research department and small capital.

Unfulfilled needs of the customers



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With so many competitors offering their products in the market but no one is able

to completely satisfy the customers. Some have the problem of lack of information or some

were scared of volatility of the stock markets. Religare has the opportunity to tap this

unsatisfied set of Customers and to make hold in the market.

Education Level

The education level in the country is improving year after year as far as technology

goes. With that the understanding of the stock market is also increasing and a lot of retail

investors are steeping in the markets which is being shown by increasing volumes,

transactions and indices

THREATS

New Competitors

A lot of new competitors are trying to enter the market in this bullish run to taste the flavor

of this cherry. This is creating a lot of competition for large players like Religare and it is

creating little confusion in the minds of the customers about the services provided by the

broker. Also many banking firms are entering into the market with huge investment.Competitors like ICICI kotak, hdfc, 5-paisa etc. are posing a lot of threats to the company.

Market Uncertainty, political instability & unfavorable economic conditions

5. ANALYSIS OF FINANCIAL STATEMENT

A. Current ratio:

CR= current assets

Current liabilities

YEAR CURRENT

ASSET

CURRENT

LAIBILITIES

CURRENT

RATIO (%)



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2009 496.81 5.10 97.41

2010 87.85 179.54 0.49

B. Debt equity ratio

DER= Long term debt

Share holders fund

YEAR TOTAL DEBT EQUITY SHARECAPITAL

DEBT-EQUITY RATIO (%)

2009 00 00 00

2010 22.22 2561.06 0.01

C. Operating ratio:

Operating Ratio = Operating profit

Sales

YEAR OPERATING

PROFIT

TOTAL NET SALES OPERATING

RATIO (%)2009 -3.53 12.55 -28



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2010 60.64 101.50 59.70

D. Net profit margin ratio

= Net profit

Sales

YEAR NET PROFIT TOTAL NET

SALES

NET PROFIT

MARGIN RATIO (%)2009 -19.96 12.55 -159.04

2010 55.52 101.50 54.70

6. Learning experience

I took up this work during my advanced level courses .As they say, that most of thelearning happens outside the classroom, so the internship project was such that learning

experience where in we got the opportunity to apply knowledge into real world of

whatever we had learned so far in classrooms. In fact the main objective of this training

was to help students to adapt to different work conditions, be flexible and creative while



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working in the organization. I have tried to fulfill the same in my summer project. I am

sure this will help the students to become better managers for tomorrow.

RELIGARE LTD is a reputed name in India .It is growing enormously as a stock

broking firm .This company offers many products and services to its clients. This company

also helps the investors by advising them as to where to invest their money. It was really a

great opportunity given to me by the institution to work in the organization.

I have learnt a lot as to how RELIGARE LTD carried out its work so efficiently

and also its business. It was really a good experience for me working during this tenure. I

am really glad that I have learnt so much in detail about its business, product and services.

This training program really did confidence a world of good and now I can say that myknowledge has improved, over these few months.

I would like to thank the entire team of RELIGARE LTD who helped me

throughout the training. We can summarize of our learning experience as how to behave in

corporate world.

How to work under pressure.

How to handle team.

How to get worked done from team.

To maximize the market share of the organization and how to interact with the

customer it is known.

PART-B

a. GENERAL INTRODUCTION

STATMENT OF THE PROBLEM



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The presents study titled A study on investors attitude towards equity market is

aimed at knowing the pre investment and post investment behavior of the investors in the

equity market. As the equity market is the volatile segment of the stock market and as the

investors behavior changes from time to time according to market conditions, studying the

behavior of the investors before investing and after investing in equity shares becomes

essential. The investors behavior is influenced by various factors like discussions before

the investments, base for decision, source of information, bullish or bearish market etc.

OBJECTIVES OF THE STUDY

To understand the investors behaviour in investing Equity market

To understand the upward and downward movement and volatility of the stock

price

To understand the behaviour pattern of business class with respect to investment

NEED FOR THE STUDY

As we know that now a days stock market is gaining importance, the turnover of

equity trading is increasing day by day. The study was undertaken on behalf religare Ltd.

This study helps to know the investors behaviour, awareness level about derivatives and

factors considered by the investor while selecting the brokers.

SCOPE OF THE STUDY

The scope indicates the boundaries in which the project was undertaken to a great

extent.The project titled Investors attitude towards equity market was based on the

information given by the investors of data collection or analysis. RELIGARE LTD at



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Bangalore. 50 investors of RELIGARE limited . at RELIGARE were contacted during the

month January-Feb of 2010-11 for the purposes of collecting the information. This study

makes an attempt to understand the behaviour of the investors in the equity market.

METHODOLOGY

The methodology is the plan, structure and strategy of the investigation process that sets

out to obtain answers to the study. The methodology adopted for collecting information is

Type of data

Primary data:

This data was collected with help of the questionnaire to know the various factors

influencing the investments, investment preferences of the investors, the profile of the

investors based on their education background, occupation, income levels and savings and

such other factor are used.

Secondary data:

This secondary data was collected from websites and various journals to know the variousinvestment avenues and their strengths and their weakness.

DATA COLLECTION:

A sample size of 50 investors was selected randomly from, Religare Ltd Bangalore.

The respondents were interviewed by giving structured questionnaire and proper

guidance was given to fill it. The primary data was collected for the purpose of analysis

and interpretation. The Analysis has done on the basis of data collected and the results

are showed in Graphs and Tables

SAMPLING UNIT:

The investors of religare Ltd Bangalore were the respondents, which included

Businessmen, Retired employees, Students, Agriculturists etc.



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SAMPLING SIZE:

50 Respondents.

SAMPLING PROCEDURE:

Convenience sampling.

LIMITATIONS OF THE STUDY

The present kind is bound to have certain limitations.

The present study was an empirical work presented in deceptive manner.

The objective of the study may well be this kind of analysis, attempt has been made

to provide comprehensive conceptual analysis.

The study was undertaken to collect all the possible information, which is very

essential for the study. Despite the sincere efforts to collect accurate information.

Time constraint, respondents hesitation and their busy schedule.

The time span for survey was short and hence only major aspects are considered in

this research study.

B. ANALYSIS AND INTERPRETATION:



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Data are facts, figures and relevant materials, past and present, serving as bases for study

of an analysis. Without an analysis with actual data no specific inferences can be drawn

from the questions under study. Inferences based on the imagination or guesswork cannot

provide correct answers to research study. The relevant, adequate and reliable data

determines the quality of finding of the study.

The data was collected from investors Religare portfolio Ltd Bangalore. Respondents

were contacted at their work place, home and at Religare portfolio Ltd. Office All the

respondents were given guidance to fill the questionnaire. The study is titled as A study

on Investors attitude towards equity market.

After collecting the primary data, it was analyzed to find out the result of the study.

The data collected from the questionnaire were coded and decoded to analyze the data. The

data are analyzed and the results were disclosed in the form of percentages, tables and

graphs.

Organized money market :

Indian financial system consists of money market and capital market. The moneymarket has two components the organized and unorganized. The organized market is

dominated by commercial banks. The other major participants are the Reserve Bank of

India, if Insurance sCorporation, General Insurance Corporation, and Unit Trust of

India, Securities Trading Corporation of India Ltd, Discount and Finance House of

India, other primary dealers, commercial banks and mutual funds, the core of the

money market is the inter bank call money market where by short-term money

borrowing/lending is effected to manage temporary liquidity mismatches. The Reserve

Bank of India occupies a strategic position of managing market liquidity through open

market operations of government securities, access to its accommodation, cost (interst

rates), availability of credit and other monetary management tools. Normally, monetary

assets of short term nature, generally less than one year, are dealt in this market.

Un-Organized money market:



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Despite rapid expansion of the organized money market through a large network of

banking institutions that have extended their reach even to the rural areas, there is still

an active unorganized market. It consists of indigenous bankers and money lenders in

the unorganized market; there is no clear demarcation between short-term and long-

term finance and even between the purposes of finance. The unorganized sector

continues to provide finance for trade as well as personal consumption. The inability of

the poor to meet the creditworthiness requirements of the banking sectors make them

take recourse to the institution that still remain outside the regulatory frame work of

banking. But this market shrinking.

The secondary market consists of twenty stock exchanges. The secondary market

provides a trading place for the securities already issued, to be bought and sold. It also

provides liquidity to the initial buyers in the primary market to re-offer the securities to

any interested buyers at any price, if mutually accepted. The financial market in India

was highly segmented until the initiation of reforms in 1992-93 on account of a variety

of regulation and administered prices including barriers to entry. There from process

was initiated with the establishment of Securities and Exchange Board of India (SEBI).



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1. Respondents Age Profile:

The researcher is interested in age profile because the aged people are more conservative

and they are taken low risk but younger the age normally people are more aggressive and

the take more risk.

Table 6.1: Age Profile of the Respondent

Age No of Responses Percent (%)Below 20 years 1 2

21 to 30 years 11 22

31 to 40 years 18 36

41 years and above 20 40

Total 50 100

Graph no: 1

2

22

3640

05

1015202530354045

Below20 years 21 to 30 years 31 to 40 years 41 years andabove

% o f R e s p o n d e n t s

Age

INFERANCE :

As per table no.6.1 and graph 5.1 it is found that 40% of the respondents were in age group

of 41 year and above and 36% were 31 to 40 years, remaining respondents were in age

group of 21 to 30 years and below 30 years having 22% and 2% respectively



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2. Respondents Gender Profile:

The researcher is interested in gender profile because it helps in knowing whether

investment in equity depends on the gender or not

Table 6.2 Gender Profile of the Respondents

Gender No of Responses Percent (%)Male 45 90

Female 5 10

Total 50 100

Graph no: 2

90%

10%

INFERENCE:

As per table 6.2 and Graph no.2 it is found that most of the respondents in the research

were male respondent i.e. 90% and remaining 10% were female respondents.



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3. Respondent Education Qualification Profile:

The researcher is interested in respondents qualification because generally the percentage

of educated people is more who invest in the Equity Shares.

Table 6.3: Respondent Education Qualifications

Qualification No of Responses PercentUnder Graduate 6 12Graduate 34 68

Post Graduate 9 18Others 1 2Total 50 100

Graph no: 3

INFERENCE:

As per table no. 6.3 and Graph no.3 it is found that the most of the respondents were

graduates i.e. 68% and 18% were post graduate and remaining was under graduates.



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4. Respondents Occupation:

The researcher is interested in occupation because occupation plays a very important role

in investment because the income level and savings depends on the occupation of

respondents.

Table 6.4: Respondents Occupation Profile

Occupation No of Responses PercentStudent 3 6

Salaried 13 26

Business 18 36

Agriculturist 4 8Professional 5 10

Retired 7 14Total 50 100

Graph no: 4

INFERENCE:



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As per table no.6.4 and Graph no4 it is found that most of the respondents were having

business as occupation i.e. 36% and 26% of the respondents were salaried, the next most

respondent were retired peoples.

5. Respondents Monthly Income:

Income is one Factor, which has bearing over the expenses, saving and purchasing

power so the researcher is very interested in knowing respondents monthly income.

Table 6.5: Respondent Monthly Income

Monthly Income No of Responses PercentBelow 100000 11 22

100000 to 300000 24 48300000 to 500000 8 16

500000 to 800000 4 8

800000 & Above 3 6

Total 50 100

Graph no: 5

INFERENCE:

As per table no.6.5 and Graph no 5 it is found that most of the respondents were having

monthly income of 100000 to 300000 i.e. 48% and 22% of the respondents were belongs



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to below 100000 to income category and remaining 16%, 8% and 6% were belongs to the

income category of Rs 300000 to 500000, Rs500000 to 800000 and above Rs 800000

respectively.

Section -B

1 Knowledge Level:

Knowledge is the one thing which gives immense confidence to any act. The knowledge

about shares is very essential and it plays a very important role, impulsive buying of shares

are some times referred as gambling and its not an investment.

Table 6.6: Knowledge Level of the RespondentKnowledge Level No of Responses Percent

Very Good 9 18Good 18 36

Average 23 46Poor 0 0

Very Poor 0 0Total 50 100

Graph no:6

INFERANCE:



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As per table no. 6.6 and Graph no 6 it is found that most of the respondents having

average knowledge about the stock i.e. 46% and 36% were having good Knowledge and

18% were having very good Knowledge about the stock share.

2. Percentage of Amount Invested in Different Avenues:

Table 6.7: Percentage of Amount Invested in Different Avenues

Invested Avenues No.of Responses PercentageMutual Funds 25 30

Debenture 5 10

Postal Schemes 12 24

Real Estate 1 2

Fixed Deposits 8 16Insurance Products 4 8

Gold 3 6

Mixed Above 1 2

Others 1 2

Total 50 100

Graph no: 7

INFERENCE:



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As per table no.6.7 and Graph no 7 it is found that 30% of the respondents were

invested their wealth in mutual funds, 24% of the respondents were invested their wealth in

postal schemes and 16% of the respondents were invested their wealth in fixed deposits.

And 10% of debenture, 8% of insurance product, and 6% of gold and remaining 2% of

investors are real estate, mixed of above, other respectively

3. Respondents Make Discussion While Making Investment:

Table6.8: With Whom the Respondents Make Discussion While Making

Investment.

Discussion With No. of Responses PercentageFriends 10 20

Brokers/Sub brokers 18 36 No Discussion 0 0

Colleagues 7 14Family Members 6 12

On my Own 9 18Total 50 100

Graph no: 8

INFERENCE:



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As per table no.6.8 and Graph no 8 it is found that 20% of the respondents done

discussion with their friends, 36% with brokers, 18% with their own analysis and 12%

done some discussion with their family members and 14% made discussion with

colleagues while investing in equity.

4. Respondents investment in stock market

Table 6.9: Reason for Investment in Equity

Particulars No of Responses Percent (%)Less than 100000 22 44100000 to 500000 14 28500000 to 1000000 10 201000000 & above 4 8Total 50 100

Graph no: 9

INFERENCE:

As per table no.6.9and graph no 9 it is found that 44 % of the respondents have invested

in between below Rs 100000 and 28% and 20% investors have invested under the category



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of 100000 to 500000 and 500000 to 1000000. And remaining 8% of the investors have

made their investment above 1000000.

5. Respondents use information available for taking investment decision.


Particulars No of

Responses

Percent (%)

Television 15 30

Internet 18 36

Newspaper/magazines 9 18

Research reports 4 8

Company published information 4 8

Total 50 100Graph no: 10

INFERENCE:



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As per table no.6.10 and graph no 10 it is found that 30% and 36% of the respondents

have used television and internet for taking decision making and 18 and 8 % of the

respondents have used newspapers, research reports and published information

respectively

6.Respondents investment decision


Particulars No of Percent

Only fundamental analysis 12 24

Only technical analysis 15 30

Both fundamental and technical analysis 18 36

Neither fundamental nor technical analysis 5 10

Total 50 100

Graph no: 11



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INFERENCE:

As per table no.6.11 and graph no 11 it is found that 24 % and 30% of the respondents

have used fundamental and technical analysis and 36% have used both the analysis and

remaining 10% used neither of the analysis.

7. Reason for Investment in Equity:


Particulars No of Responses PercentSafety of Invested Capital 13 26

Capital Appreciation 17 34Liquidity 15 30

Regular Return 5 10




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INFERANCE:

As per table no. 6.12 and graph no 12, it is found that 26% feels that factor is to be

considered was safety of invested capital, and 34% respondents feels it is capital

appreciation and 30% are feels liquidity and 10% of regular return is very important factor

to be considered at the of investment in equity.

8. Time Horizon: Time is the precious thing. Time of the investment depends on the

objective of the investment. If the objective is for further usage obviously the time horizon

of the investment would be little large.

Table 6.13: Time Horizon of Investment

Time Horizon No of Responses PercentLess than 6 month 10 20

6 months to 1 year 23 46

1 to 3 years 11 22

3 to 5 years 4 8

Above 5 years 2 4

Total 50 100Graph no:13



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INFERENCE:

As per table no. 6.13 and Graph no 13 it is found that 20% of less than 6 month, 46%

of the respondents time horizon is 6 months to 1 year and 22% respondents time horizon is

1 to 3 years and only 4% of the respondents were having time horizon of above 5 years.

9. Equity Shares are Fair and Appropriate Way of Mobilizing Funds by

companies:

Table 6.14: Opinion Regarding the statement Equity Shares are Fair and

Appropriate Way of Mobilizing Funds by Companies

Options No of Responses Percent

Low Risk 18 36Liquidity 8 16

Good Return 16 32

Assured Return 6 12

High Return & High Risk 2 4




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INFERANCE:

As per table no. 6.14 and Graph 14 it is found that most of the respondents i.e.

36% of low risk, 16% of liquidity, 32% of good return, 12% of assured return and

only 4% of high risk and return Respectively.

10. Frequency of Trading: Frequency of Trading depends on the investors

occupation, perception about the market, market movements, and time horizon of the

investment.

Table 6.15: Frequency Investors Trade in Equity Shares.

Frequency No of Responses PercentDaily 16 32

Weekly 22 44Monthly 8 16Once in 6 months 4 8

Once in a year 0 0




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INFERENCE:

As per table no. 6.15and Graph no 15 it is found that most of the respondents trade

weekly and daily i.e. 44% and 32% respectively and only 16% of the respondents makes

day trading.

11. Price Movements:

Price movement is the very critical factor in stock market, what investor that may

not happens because price is purely depends on the demand and supply of the securities.

Sometimes price may go up and suddenly it may fall.

Table 6.16: Investors Behaviour if Price Falls by More Than 20 %

Particulars No of Responses PercentSell the security out of fear 16 32Buy some more security as it has become cheap 19 38

Convert it into long term investments 15 30

Total 50 100



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Graph no: 16

INFERENCE:

As per table no. 6.16 and Graph no 16 it is found that 38% of the respondents were buy

some more security as it has become cheap and 32% of the respondents were sell the

security out of fear and 30% of the respondents take the position of converting it into long

term investments.

12. Investors Lost Their Money in Bearish Market

Table 6.17: Investors Lost Their Money in Bearish Market.

Particulars No of Responses PercentYes 21 42 No 29 58

Total 50 100

Graph no:17



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INFERENCE:

As per table no. 6.17 and Graph no 17 it is found that 58% of the respondents were

not lost money because of the bearish market and 42% of the respondents were lost money

because of their false expectation.

13. Respondents buy the shares at the peak of Bull Run and lost money:

Table 6.18: Buying the shares at peak of Bull Run and lost money

Particulars No of Responses PercentYes 26 52 No 24 48

Total 50 100



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Graph no: 18

INFERANCE:

As per table no. 6.18 and Graph no18 it is found that 52% of the respondents

were aware about futures and options contracts and only 48% were not aware about

Future & Option contracts.

14. Respondent the number of securities in investors portfolio:

Table 6.19: The number of securities in investors portfolio

Particulars No of Responses Percent (%)Less than 5 17 34

5 to 10 14 28

10 to 20 10 20

Above 20 9 18



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Total 50 100

Graph no: 19

INFERANCE:

As per table no. 6.19 and Graph no19 it is found that 34% of the investors securities

less than 5% and 28%, 20% and 8% of investors belonging 5 to 10, 10-20 and above 20.

15. Respondent managing portfolioTable 6.20:Managing in port folio

Particulars No of Responses Percent (%)Self 8 16

Self with Advice from professionals 16 32



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Though brokers portfolio management services 26 52

Total 50 100

Graph no: 20

INFERANCE:

As per table no. 6.20 and Graph no 20 it is found that around 16% of the investor

manage their own portfolio and remaining 32% of investors take the advice from

professionals and 52% of the investors go to brokers.

16. Respondent in future performance of stock market

Table 6.21:Future performance of stock market

Particulars No of Responses Percent (%)



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Very good 19 38

Good 7 14

Average 5 10Poor 7 14

Very poor 12 24

Total 50 100

Graph no: 21

INFERANCE:

As per table no. 6.21 and Graph no 21 it is found that 38% of the respondents known

very good about future performance of the stock and 14%, 10% of respondents average in

knowing about future stock performance and remaining 14% of the respondents poor and

another 14% are very poor.

17. Respondent Expected return from Equity market in 5 years

Table 6.22:Return in Equity market in 5 years



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Particulars No of Responses Percent (%)Less than 8% P.A 22 44

8% to 15% P.A 14 2815% to 25% P.A 9 18

25% and above 5 10

Total 50 100

GRAPH NO: 22

INFERANCE:

As per table no. 6.22 and Graph no 22 it is found that 44% is the expected return from 5

years is less than 8% P.A and 28% and 18% would get the return of 8% to 15% and 10%

would get the return of above 25%.

18. Respondent while selecting the Brokers/Sub brokers



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Table 6.23:While selecting the broker /Sub brokers

Particulars No of Responses Percent (%)Brokerage charge 11 22

Quality of service 23 46

Demat account faculty 7 14

Availability of Research 6 12

Courteous staff reports 3 6

Total 50 100

Graph no: 23

INFERANCE:

As per table no. 6.23 and Graph no 23 it is found that 22% of the respondents were

consider brokerage charge and 46% of investor consider quality of service and 14% and !

2% of investors consider demat account faculty and availability of research and remaining

6% go with courteous staff reports.



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19. Respondent about industries would investor like to investment

Table 6.24:Industry would like to investment

Particulars No of Responses Percent (%)Pharmaceuticals 31 62

IT Industries 10 20

Construction 5 10

Textiles 3 6

If any other please specify 1 2

Total 50 100

Graph no: 24

INFERENCE:

As per table no. 6.24and Graph no 24 it is found that 62% of the respondents trade in

Pharmaceutical 20% and 10% of investor trade in IT and construction and remaining 6%

and 2% of investors trade in textiles and others.



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7. FINDINGS AND RECOMMENDATION

FINDINGS:

Majority of investors in stock market are looking for long term investment

Majority of young generation who are employed is entering into this market but

they are not aware about Equity market

56% of the respondents decision was based both on Fundamental and technical

analysis. Most of the Investors of RELIGARE LTD were well informed about the

economy, industry, and company and also about the past variations in share prices.

88% of the respondents did not take decision based on beliefs like horoscope,

Astrologers advice and good days time as per belief. Therefore it is understood

that most of the investors of RELIGARE LTD were not dependent on the beliefs

for taking investment decisions.

The level of knowledge of all the investors was good and average. This shows that

all the investors in RELIGARE PORTFOLIO had sufficient knowledge about the

shares.

12% of the investors were under graduates and rest were graduates and

postgraduates hence majority of the investors of RELIGARE PORTFOLIO werewell educated.

52% of the respondents was aware about derivative contracts and a majority of

36% of the users does speculation by using derivatives.



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48% of the respondents had monthly income in the range of Rs100000 to

Rs300000

64% of the respondents felt that equity shares are fair and appropriate way of

mobilizing funds by companies. 90% of the respondents are of the opinion that

equity shares should not be banned for individual investors.

32% revealed their opinion as to they sell the securities as a cause of fear, 38%

preferred to buy it as it was cheaper, 30% said it was time to better sit quiet, so

findings can be taken as to when ever there is 20% fall in price of share, around

62% are to react for a major change in decision and rest 38% were to sit quiet.

34% of the respondents earned a return of 8% to 15% and 25% of the respondents

earned more than 25% return so it is clear that investors of the RELIGARE

PORTFOLIO have been getting reasonable return from equity investment.

58% respondents felt that performance of future stock market will be good so it

shows that majority of investors of RELIGARE PORTFOLIO were bullish about

the stock market.

About 26% of the respondents felt that the quality of service provided by the stock

broker is the most important factor and 25% of the respondents felt that brokerage

charge is the most important factor in selecting a broker.

There was no respondent who did not collect information prior investing in Equity

market. All the investors had collected information through various source like

friends, brokers/sub brokers, newspapers and magazines etc. as a source of

information to make investment.

66% of the respondents managed their portfolio by their own analysis whereas

28% consulted the professionals before taking decisions.



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RECOMMENDATION

According to the study majority of investors in stockmarket are looking for

long term investment but it is recommended to all investors to invest also in

short term investment since it results in higher returns

According to the study thorough knowledge about stock market is necessaryfor all the investors in order to reduce the risk which is associated with their

investment

48% of the respondents were not aware about the derivatives. 52% of the

respondents were aware of it. Therefore RELIGARE PORTFOLIO can

arrange some awareness program on derivate so that proper purpose of future

and options contracts can be achieved.

As this study shows that the investors should also know the current situation

of stock market and he should analyse the various factors affecting to stock

market before they invest.



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CONCULSION:

The level of knowledge of all investors in RELIGARE PORTFOLIO is good and above

the average level. The major factors that influence the investors to investment in equity are

capital appreciation and liquidity. The above analysis shown that 26% of investors select

the brokers on the basis of quality of service and brokerage charge.The average trading cycle of the investors is one week. It is found that 58% of

investors did not lost money in bearish market and from analysis we can also see that 54%

of investors did not lost money even in Bull Run market

.The data analysis shows that 52% of investors are aware about derivatives market

(Futures and options), out of 26 respondents only 18 (i.e. 70%) of investors feel derivatives

is a good tools for speculation.



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ANNEXURE

BALANCE SHEET

Mar ' 10 Mar ' 09

SOURCES OF FUNDS

Owner's Fund

Equity Share Capital 127.81 76.29

Share Application Money 0.18 1,800.16

Preference Share Capital 25.00 25.00

Reserves & Surplus 2,408.07 617.19

Loan Funds

Secured Loans 0.00 0.00

Unsecured Loans 22.22 0.00

Total 2,583.28 2,518.64

USES OF FUNDS

Fixed Assets

Gross Block 25.67 3.73

Less : Revaluation Reserve 0.00 0.00

Less : Accumulated Depreciation 4.54 0.36



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Net Block 21.12 3.37

Capital Work-in-progress 0.00 0.01

Investments 2,653.85 2,023.55

Net Current Assets

Current Assets, Loans & Advances 87.85 496.81

Less : Current Liabilities & Provisions 179.54 5.10

Total Net Current Assets -91.69 491.71

Miscellaneous expenses not written 0.00 0.00

Total 2,583.28 2,518.64

PROFIT AND LOSS A/C

Mar ' 10 Mar ' 09

Income :

Operating Income 101.59 12.55

Expenses

Material Consumed 0.00 0.00

Manufacturing Expenses 0.00 0.00

Personnel Expenses 25.62 9.88

Selling Expenses 7.31 0.90



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Adminstrative Expenses 47.72 12.44

Expenses Capitalised -39.70 -7.14

Cost Of Sales 40.95 16.08

Operating Profit 60.64 -3.53

Other Recurring Income 33.48 14.89

Adjusted PBDIT 94.12 11.37

Financial Expenses 21.96 21.04

Depreciation 4.27 0.31

Other Write offs 0.00 0.00

Adjusted PBT 67.89 -9.99

Tax Charges 12.80 5.93

Adjusted PAT 55.09 -15.91

Non Recurring Items 0.43 0.00

Other Non Cash adjustments 0.00 -0.05



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Reported Net Profit 55.52 -15.96

Earnigs Before Appropriation 49.01 -6.51

Equity Dividend 25.56 0.00

Preference Dividend 4.84 0.00

Dividend Tax 0.00 0.00

Retained Earnings 18.61 -6.51



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BIBILOGRAPTHY:

REFERENCES Stock exchange websites such as nseindia.com, bseindia.com, nasdaq.com

etc.

Standard reference textbooks ex: dalal street, 2004,2007,2006,2005 edition

I.M.Pandey (2005) Financial Management ninth edition, vikas publishing

house pvt.ltd

Punithavathi Pandian security analysis and portfolio management.

Prasanna Chandra (2005), Financial Management Theory and Practice sixth

edition, New Delhi, Tata Mcraw Hill.

Grinblatmark and matti keloharju (2001) what makes investor trade journal of

finance vol.56.

ICFAI journals of investor behavior.

Securities Industry Association. Annual SIA Investor Survey: Investors

Attitudes toward the Securities Industry. Harris Interactive (11/2003), Wirthlin

Worldwide(11/2004)



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QUESTIONNAIRE

Dear respondents,

I am, YASHAVANTHA.H.M . Pursuing MBA IV semester at JSSATE.

Bangalore, currently undergoing training and has taken a study entitled A STUDY ON

INVESTORS BEHAVIOUR IN EQUITY MARKET.I kindly request you to spare your to spare your valuable time to go through and

fill in questionnaire. The information given by you will be used only for academic purpose

and data would be confidential.

Thanking you,

Yashavantha.H.M.

IV Semester

Section A-Personal Information

1. Name: ..

2. Age:

a. Below 20 years [ ] b. 21 to 31 years [ ]

c. 31 to 40 years [ ] d. 41 years and above [ ]

3. Sex:

a. Male [ ] b. Female [ ]

4. Qualification:

a. Under Graduate [ ] b. graduate [ ]

c. Post Graduate [ ] d. Others [ ]



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5. Occupation:

a. Student [ ] b. Salaried [ ]

c. Self Employer [ ] d. Agriculturist [ ]

e. Professional [ ] f. House wife [ ]

If any other, please

Specify..

6. Monthly Incomea. 100000to300000 [ ] b.300000 to 500000 [ ]

c. 500000 to800000 [ ] d.800000 and more [ ]

Section B

1. How do you rate your knowledge about Stocks and shares?

a. Very good [ ] b. Good [ ]

c. average [ ] d. poor [ ]

e. Very poor [ ]

2. Which of the following investment avenues you have invested other than

stock?

a. Mutual Funds [ ] b. Fixed Deposits [ ]

c. Debentures [ ] d. Insurance product [ ]

e. Postal Schemes [ ] f. Gold [ ]

g. Real Estate [ ] h. Mixed of Above [ ]i. If others please

Specify: ..

3. With whom you generally discuss before taking investment decision?

a. Friends [ ] b. colleagues [ ]



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c. Brokers/Sub brokers [ ] d. Family members [ ]

e. No Discussion [ ] f. On my own [ ]

4. The amount of investment in stock market?

a. Less than 1lakh [ ] b.1lakhto5lakhs [ ]

c.5lakhsto10lakhs [ ] d.10lakhsand above [ ]

5. Do you use the information available from the following source for taking Investment

Decision?

a. Television [ ] b. Internet [ ]c. Newspaper/Magazines [ ] d. Research reports [ ]

e. company published Information [ ]

6. How do you base your Investment Decision?

a. Only Fundamental Analysis [ ]

b. Only Technical Analysis [ ]

c. Both Fundamental and Technical [ ]

d. Neither Fundamental nor Technical Analysis [ ]

7. The factors that you would consider at the time Investment in Equity

a. Safety of invested Capital [ ] b .capital appreciation [ ]

c. Liquidity/Marketability [ ] d. Regular return [ ]

8. What is your time horizon in Equity Investment?

a. Less than 6 months [ ] b. 6 month 1 year [ ]c. 1 to 3 years [ ] c. 3 to 5 years [ ]

e. Above 5 years [ ]

9. Why do you prefer above option?

a. Low Risk [ ] b. Liquidity [ ]



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c. Good Returns [ ] d. Assured returns [ ]

e. High risk and High returns [ ]

10. How frequently you trade in Equity Shares generally?

a. Daily [ ] b. Weekly [ ]

c. Monthly [ ] d. Once in 6 months [ ]

e. Once in a year [ ]

11. Soon after you buy a share if the price falls by more than 20% what

would you do generally?a. Sell the security out of Fear [ ]

b. Buy some more security as it has become cheap(square off) [ ]

c. convert into long term investment [ ]

12. Did you ever sold many shares out of fear when the market turned very

Bearish for a long time and lost money?

a. Yes [ ] b. No [ ]

13. Did you ever purchase many shares at the peak of Bull Run and lost

money when the market crashed?

a. Yes [ ] b. No [ ]

14. Generally what would be the number of securities in your portfolio?

a. Less than 5 [ ] b. 5 to 10 [ ]

C.10 to 20 [ ] d. above 20 companies [ ]

15. Who is managing you Portfolio?

a. Self [ ]

b. Self with Advice from professionals [ ]

c. Through brokers Portfolio Management Services (PMS) [ ]



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16. What is your view about future performance of stock market?

a. Very Good [ ] b. Good [ ]

b. Average [ ] d. Poor [ ]

e. Very poor [ ]

17. What is your Expected return from Equity investment over 5 years

From now?

a. Less than 8% p.a [ ] b. 8% to 15% p.a [ ]

c. 15% to 25% p.a [ ] d. above 25% p.a [ ]

18. What factors do you consider while selecting the Brokers/ Sub- Brokers?

a. Brokerage charge [ ] b. Quality of service [ ]

c. Brokers Brand [ ] d. none of above [ ]

e. If any other specify.

19. Which industries would u like to investment?

a. Pharmaceuticals [ ] b. IT industries [ ]

c. Construction [ ] d. Textiles [ ]

e. If any other please specify..

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