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    Project Report

    On

    Bombay Stock

    Exchange

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    Name:

    Class:

    Academic year:

    R.No:

    Subject:

    Submitted to: Prof.

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    CONTENTS

    What Is Stock? STOCK EXCHANGE Name of Indian Stock Exchanges

    BOMBAY STOCK EXCHANGE

    Introduction NEED FOR BSE FUNCTIONS OF BSE OBJECTIVES OF BSE FEATURES OF SENSEX INDICES OF BSE Constituents list of BSE SENSEX WHO SELECTS THE SCRIP MARKET CAPITALIZATION BENEFITS OF BSE FACTORS AFFECTING BSE CAUSES OF PRICE FLUCTUATION: SPECULATION HIGHS AND LOWS OF BSE QUESTIONNAIRE CONCLUSION Methodology Bibliography

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    What Is Stock?

    Imagine you wanted to start a retail store with members of your family.You decide you need Rs.100,000 to get the business off the ground so you

    incorporate a new company. You divide the company into 1,000 pieces, or

    "shares" of stock. (They are called this because each piece of stock is

    entitled to a proportional share of the profit or loss). You price each new

    share of stock at Rs.100. If you can sell all of the shares to your family

    members, you should have the Rs.100,000 you need (1,000 shares x Rs.100

    contributed capital per share = Rs.100,000 cash raised for the company).

    If the store earned Rs.50,000 after taxes during its first year, each share ofstock would be entitled to 1/1,000th of the profit. You'd take Rs.50,000 and

    divide it by 1,000, resulting in Rs.50.00 earnings per share (or EPS). You

    could call a meeting of the company's Board of Directors (these are the

    people the stockholders elected to watch over their interest since they

    couldn't run the business) and decide to use the money to pay dividends,

    repurchase, or expand the company by reinvesting in the retail store.

    At some point, you may decide you want to sell your shares of the family

    retailer. If the company is large enough, you could trade on a stock

    exchange. That's what is happening when you buy or sell shares of acompany through astock broker. You are telling the market you are

    interested in acquiring or selling shares of a certain company and Wall

    Street matches you up with someone and takes fees and commissions for

    doing it. Alternatively, shares of stock could be issued to raise millions, or

    even billions, of dollars for expansion. When Sam Walton formed Wal-Mart

    Stores, Inc., the initial public offering that resulted from him selling newly

    created shares of stock in his company gave him enough cash to pay off

    most of his debt and fund Wal-Mart's nationwide expansion.

    http://beginnersinvest.about.com/cs/a/aa2203a.htmhttp://beginnersinvest.about.com/od/choosingabroker/tp/brokers-and-brokerage-firm-guide.htmhttp://beginnersinvest.about.com/od/choosingabroker/tp/brokers-and-brokerage-firm-guide.htmhttp://beginnersinvest.about.com/cs/a/aa2203a.htm
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    STOCK EXCHANGE

    STOCK EXCHANGE is an organized market place, either corporation or

    mutual organization, where members of the organization gather totrade company stocks or other securities.Stock Exchange also

    facilitates for the issue and redemption of securities and other

    financial instruments including the payment of income and dividends.

    The trade on an exchange is only by members and stock broker who

    have a seat on the exchange.

    Name of Indian Stock Exchanges

    1. Ahmedabad Stock Exchange2. Bangalore Stock Exchange3. Bhubaneswar Stock Exchange4. Bombay Stock Exchange5. Calcutta Stock Exchange6. Cochin Stock Exchange7. Coimbatore Stock Exchange8. Delhi Stock Exchange Association9. Gawahati Stock Exchange10.Hyderabad Stock Exchange11.Inter-connected Stock Exchange of India12.Jaipur Stock Exchange13.Ludhiana Stock Exchange14.Madhya pradesh Stock Exchange15.Madras Stock Exchange16.Mangalore Stock Exchange17.National Stock Exchange18.Magadh Stock Exchange (Patna)19.

    Over The Counter Stock Exchange of India (OTCEI)20.Pune Stock Exchange

    21.Uttar Pradesh Stock Exchange22.Vadodara Stock Exchange23.Meerut Stock Exchange24.United Stock Exchange (started in June09)25.Saurashtra Stock Exchange

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    Stock Exchange being a very vast topic, we are focusing on BOMBAY

    STOCK EXCHANGE (BSE).

    Introduction

    Bombay Stock Exchange is the oldest stock exchange in Asia What is nowpopularly known as the BSE was established as "The Native Share & Stock

    Brokers' Association" in 1875.

    Over the past 135 years, BSE has facilitated the growth of the Indian

    corporate sector by providing it with an efficient capital raising platform.

    Today, BSE is the world's number 1 exchange in the world in terms of the

    number of listed companies (over 4900). It is the world's 5th most active in

    terms of number of transactions handled through its electronic trading

    system. And it is in the top ten of global exchanges in terms of the market

    capitalization of its listed companies (as of December 31, 2009). The

    companies listed on BSE command a total market capitalization of USD

    Trillion 1.28 as of Feb, 2010.

    BSE is the first exchange in India and the second in the world to obtain an

    ISO 9001:2000 certifications. It is also the first Exchange in the country and

    second in the world to receive Information Security Management System

    Standard BS 7799-2-2002 certification for its BSE On-Line trading System

    (BOLT).

    The BSE Index, SENSEX, is India's first and most popular Stock Market

    benchmark index. Exchange traded funds (ETF) on SENSEX, are listed on BSE

    and in Hong Kong. Futures and options on the index are also traded at BSE.

    BSE continues to innovate:

    Became the first national exchange to launch its website in Gujaratiand Hindi and now Marathi

    Purchased of Marketplace Technologies in 2009 to enhance the in-house technology development capabilities of the BSE and allow

    faster time-to-market for new products

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    Launched a reporting platform for corporate bonds christened theICDM or Indian Corporate Debt Market

    Acquired a 15% stake in United Stock Exchange (USE) to drive thedevelopment and growth of the currency and interest rate

    derivatives markets

    Launched 'BSE StAR MF' Mutual fund trading platform, which enablesexchange members to use its existing infrastructure for transaction in

    MF schemes.

    BSE now offers AMFI Certification for Mutual Fund Advisors throughBSE Training Institute (BTI)

    Co-location facilities for Algorithmic trading BSE also successfully launched the BSE IPO index and PSU website BSE revamped its website with wide range of new features like 'Live

    streaming quotes for SENSEX companies', 'Advanced Stock Reach',

    'SENSEX View', 'Market Galaxy', and 'Members'

    With its tradition of serving the community, BSE has been undertaking

    Corporate Social Responsibility (CSR) initiatives with a focus on Education,

    Health and Environment. BSE has been awarded by the World Council of

    Corporate Governance the Golden Peacock Global CSR Award for its

    initiatives in Corporate Social Responsibility (CSR).

    Other Awards:

    The Annual Reports and Accounts of BSE for the year ended March31, 2006 and March 31, 2007 have been awarded the ICAI awards for

    excellence in financial reporting.

    The Human Resource Management at BSE has won the Asia - PacificHRM awards for its efforts in employer branding through talent

    management at work, health management at work and excellence in

    HR through technology

    Drawing from its rich past and its equally robust performance in the recent

    times, BSE will continue to remain an icon in the Indian capital market.

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    NEED FOR BSE

    BSE is one of the factors Indian Economy depends upon. BSE has played a

    major role in the development of the country. Through BSE, Foreign

    Investors have invested in India. Due to inward flow of foreign currency the,

    the Indian economies have started showing the upward trend towards thedevelopment of the country.

    BSE provides employment for many people. Trading in BSE is also a

    business for a few, their family income depends on it that is the reason why

    when scandals occur in the stock market it not only affects the companies

    listed but also affects many families. In the few extreme cases, it is

    observed that the bread winner of a family tends to suicide due to the

    losses occurred.

    In most of major industrial cities all over the world, where the businesses

    were evolving and required investment capital to grow and thrive, stock

    exchanges acted as the interface between Suppliers and Consumers of

    capital. One of the key advantages of the stock exchanges is that they are

    efficient medium for raising resources and channeling savings from the

    general public by the way of issue of Equity / Debt Capital by joint stock

    companies which are listed on stock exchanges.

    Not to forget that the taxes and other statutory charges paid by BSE are

    substantial and make a sizeable contribution to the Government exchequer

    (Financial resources; funds). For example, transactions on the stock

    exchanges are subject to stamp duties, which are paid to the State

    Government. The annual revenue from this source ranges from Rs 75100

    crores

    With the opening up of the financial markets to Foreign Investors a numberof foreign institutional investors and brokers have established a sizeable

    presence in Mumbai.

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    FUNCTIONS OF BSE

    The Stock Market is a pivotal institution in the financial system. A well-

    ordered stock market performs several economic functions: It ensures

    the measure of safety and fair dealing

    It performs an act of magic by translating short-terminvestments into long-term funds for companies.

    It directs the flow of capital in the most profitablechannels.

    It induces companies to raise their standard ofperformance.

    It offers guidance to management about the cost ofcapital.

    1. Measure of Safety and Fair Dealing:The stock exchanges operate under a regulatory framework which

    seeks to protect the interest of investors. The rules, regulations, and

    bye-laws of a stock exchange, which are approved by the central

    government, are meant to ensure that a reasonable measure of safety

    is provided to investors and transactions take place in competitive

    conditions which are fair to all concerned.

    2.Act of Magic:Most of the investors are interested in short-term investments. The

    requirements of companies are, however, long-term in naturethey

    require equity capital on a more or less permanent basis and

    debenture capital for 3 to 15 years. Thanks to the negotiability and

    transferability of securities, through the stock market, it is possible for

    companies to obtain their long-term requirements from investors with

    short-term horizons. While one investor is substituted by another

    when a security is transacted, the company is assured of availability of

    funds.

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    3. Flow of Capital in the Most Profitable Channels:Companies which have more profitable investment opportunities are

    normally able to raise substantial funds through the stock market,

    whereas companies which do not have such opportunities are

    normally not able to do so. As a result, the stock market facilitates thedirection of the flow of capital in the most profitable channels.

    4. Inducement to Companies to Raise their Standard ofPerformance:

    When the equity, capital of a company is listed on a stock exchange,

    the performance of the company is reflected in the market price of the

    equity stock, which is readily available for public consumption. Put

    differently, the companys performance is more visible in the eyes of

    public. Such a public exposure normally induces companies to raise

    their standard of performance.

    5. Guidance of Cost of Capital:The market value of the securities of company are required for

    computing its cost of capital. Such values can be obtained from stock

    market quotations. Hence the stock market offers guidance on cost of

    capital.

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    OBJECTIVES OF BSE

    1) To safeguard the interest of investing public having dealings on the

    exchange.

    2) To establish and promote honorable and just practices in securities

    transactions.3) To promote, develop and maintain well regulated market in securities.

    4) To promote industrial development in the country through efficient

    resource mobilization by the way of investment in corporate securities.

    FEATURES OF SENSEX

    1) Sensex is a value weighted index2) Composed of 30 stocks representing various sectors3) These companies accounts for one fifth of market capitalization4) Base value of sensex is 100 (april 1,1979)5) Base year (1978-79)6) Free float capitalization method7) Iconic stature-tracked worldwide8) Index cooperation agreement with deutsche borse has made sensex

    available to investors in europe and america

    9) Also available in hong kongINDICES OF BSE

    Broad Market Indices1) Sensex 2) Bse 100 3) Bse 200

    4) Bse500 5) Bse Mid Cap 6) Bse Small Cap

    Sectoral Indices1) Bse Auto 2) Bankex 3) Capital Goods

    4) Consumerable Goods 5)Fmcg 6)IT, Power

    Dollar Linked Indices1) Dollex30 2) Dollex100 3) Dollex 200

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    Constituents list of BSE SENSEX

    Bombay Stock Exchange has 30 companies sripted.

    1. ACC2. BHEL3. BHARTI AIRTEL4. DLF UNIVERSAL Ltd.5. GRASIM INDUSTRIES6. HDFC7. HDFC BANK8. HERO HONDA MOTORS Ltd.9. HINDALCO INDUSTRIES Ltd.10.HLL11.ICICI BANK12.INFOSYS13.ITC Ltd.14.JAIPRAKASH ASSOCIATES15.L&T16.M&M Ltd.17.MARUTI UDYOG18.NTPC19.ONGC20.RELIANCE COMMUNICATION21.RELIANCE INDUSTRIES22.RELIANCE INFRASTRUCTURE23.SBI24.STERLITE INDUSTRIES25.SUN PHARMACEUTICAL INDUSTRIES26.TCS27.TATA MOTERS28.TATA STEEL29.TATA POWER30.WIPRO

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    WHO SELECTS THE SCRIP

    1. They are selected by the Index Committee.2. This committee consists of all sorts of individuals including

    academicians, mutual fund managers, finance journalists,

    Independent governing board members and Other participants in the

    financial markets.

    SCRIP SELECTION CRITERIA

    Market capitalization: The company should have a market capitalization in

    the Top 100market capitalizations of the BSE. Also the market

    capitalization of each company should Be more than 0.5% of the total

    market capitalization of the Index.

    Trading frequency: The Company to be included should have been tradedon each and every trading day for the last one year. Exceptions can be

    made for extreme reasons like share suspension etc.

    Number of trades:The scrip should be among the top 150 companies listed

    by average number of trades per day for the last one year.

    Industry representation:The companies should be leaders in their industry

    group.

    Listed history:The companies should have a listing history of at least oneyear on BSE.

    Track record: In the opinion of the index committee, the company should

    have an acceptable track record.

    KINDS OF SHARES

    Small Caps (small market Capitalization less lie in between $300million - $2billion),

    Large Caps (large Capitalization in between $10billion-$200billion),

    Mid Caps (lie in between Small & Large)

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    MARKET CAPITALIZATION

    It is the worth of the company in terms of shares Based on this market capitalization values onlycompanies are

    classified into "large-cap", "mid-cap"and "small cap"

    Market Capitalization = No. of outstanding sharesx Current market price of one share

    IN CASE OF BONUS SHARES

    Sensex will be based on some adjustment in the total marketcapitalization

    Total market capitalization (new) = Total market capitalization(old) x[ New market capitalizationof stock / old market capitalization of

    stock]

    BENEFITS OF BSE

    FROM THE POINT OF VIEW OF COMMUNITY:

    1. It assist the economic development by providing a body of interested

    investors.

    2. it uploads the position of superior enterprises and assist them in raising

    further funds.

    3. Government can undertake projects of national importance and social

    value raising funds through the sale of its securities on the stock exchange.

    4. It is the stock exchanges that central bank of a country can control creditby undertaking open market operations (purchase and sale of security)

    FROM THE COMPANY POINT OF VIEW :

    1. A company whose shares quoted on stock exchange they enjoy better

    reputation and credit.

    2. The market for the shares of such a company is naturally widened.

    3. The market price of securities is likely to be higher in relation to its

    earnings, dividends and property values. This raises the bargaining power of

    the company in the event of a takeover, merger or amalgamation.

    FROM THE INVESTORS POINT OF VIEW:

    1. Liquidity of the investment is increased

    2.The securities dealt on a stock exchange are good

    collateral security for loans.

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    3. The stock exchange safeguards interests of investors through strict

    enforcement of rules and regulations.

    4. The present net worth of investments can be easily known by the daily

    quotations.

    5. His risk is considerably less when he holds or purchases listed securities.

    FACTORS AFFECTING BSE

    There are various factors that affect BSE:

    (a) THE KETAN PAREKH SCAMKetan Parekh was a graduate from HR College and CA by profession. Ketan

    Parekhs scam was often referred to as the one-man army or Pentafour

    Bull. The 176-pointSensex

    crash on March 1, 2001 came as a major shock

    for the Government of India, the stock markets and the investors alike

    This sudden crash in the stock markets prompted the Securities Exchange

    Board of India (SEBI) to launch immediate investigations into the volatility

    of stock markets.

    The scam shook the investor's confidence in the overall functioning of the

    stock markets. By the end of March 2001, at least eight people werereported to have committed suicide and hundreds of investors were driven

    to the brink of bankruptcy.

    The first arrest in the scam was of the noted bull, Ketan Parekh (KP), on

    March 30, 2001, by the Central Bureau of Investigation (CBI). Soon, reports

    abounded as to how KP had single handedly caused one of the biggest

    scams in the history of Indian financial markets. He was charged with

    defrauding Bank of India (BoI) of about $30 million among other charges.

    KP's arrest was followed by yet another panic run on the bourses and the

    Sensex fell by 147 points. By this time, the scam had become the 'talk of the

    nation,' with intensive media coverage and unprecedented public outcry.

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    Bank of India along with Punjab National Bank and SBI were at the receiving

    end. Madhavapura Bank and Classic Cooperative Bank are the others

    affected. Ketan Parekh owes around Rs1.3bn to the Bank of India

    KPs scam was one of the major scam in India after Harshad Mehta which

    lost the confidence of investors in investing in share market. KPs scam isalso regarded as one mans army scam.

    (b) FOREIGN INSTITUTIONAL INVESTORS (FII)

    Foreign investment refers to investments made by residents of a

    country in another countrys financial assets and production processes.

    After the opening up of the borders for capital movement, foreign

    investments in India have grown enormously. It affects the

    productivity factor of the beneficiary or the receiver country and has

    the potential to create a ripple effect on the balance of payments of

    that country. In developing countries like India, foreign capital helps in

    increasing the productivity of labor and to build up foreign exchange

    reserves to meet the current account deficit. It provides a channel

    through which these countries can have access to foreign capital.

    Foreign investment can be of two forms: Foreign direct investment

    (FDI) and Foreign portfolio investment (FPI).FDI involves directproduction activity and has a medium to long term investment plans.

    In contrast the FPI has a short term investment horizon. They mostly

    investment in the financial markets which consist of Foreign

    Institutional Investors (FIIs). They invest in domestic financial markets

    like money market, stock market, foreign exchange market etc.

    Foreign institutional investors investments are volatile in nature, and

    they mostly invest in the emerging markets. They usually keep in mindthe potential of a particular market to grow.

    FII has lead a significant improvement in India relating to the flow of

    foreign capital during the period of post economic reforms. The inflow

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    of FII investments has helped the stock market to raise at a greater

    height according to financial analysts. Sensex touched a new height. It

    crossed 10000-mark in January 2006, which was 8073 on November 2,

    2005, and 9323 in December 2005.FII participation in the Indian stock

    market triggers its upward movement, but, at the same time,

    increased liquidity through FII investment inflow increases volatility

    too.

    FIIs IMPACT ON THE INDIAN ECONOMY.

    The Ashok Lahiri Committee Report on encouraging FII Flows (Ministry of

    Finance, the Government of India) mentions some reasons for the need of

    FII flows. FII flows supplement and augment domestic savings and domestic

    investment without increasing the foreign debt of our country. Capitalinflows to the equity market increase stock prices lower the cost of equity

    capital and encourage investment by Indian firms.

    The Indian stock markets are both shallow and narrow and the movement

    of stocks depends on limited number of stocks. As FIIs purchases and sells

    these stocks there is a high degree of volatility in the stock markets. If any

    set of development encourages outflow of capital that will increase the

    vulnerability of the situation. The high degree of volatility can be attributed

    to the following reasons:

    The increase in investment by FIIs increases stock indices in turnincreases the stock prices and encourages further investments. In

    this event when any correction takes place the stock prices declines

    and there will be full out by the FIIs in large number as earning per

    share declines.

    The FIIs manipulate the situation of boom in such a manner that theywait till the index raises up to a certain height and exit at anappropriate time. This tendency increases the volatility further.

    So even though the portfolio investment by FIIs increases the flow of

    money in the economic system, it may create problems of inflation.

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    CAUSES OF PRICE FLUCTUATION:

    1. DEMAND AND SUPPLY2. BANK RATE3. SPECULATIVE PRESSURE4. ACTIONS OF UNDERWRITERS AND OTHER FINANCIAL INSTITUTIONS5.

    CHANGE IN COMPANYS BOARD OF DIRECTORS

    6. FINANCIAL POSITION OF THE COMPANY7. TRADE CYCLE8. POLITICAL FACTORS9. SYMPATHETIC FLUCTUATIONS10.OTHER FACTORS:

    1. EXPECTED MONSOON2. PERSONAL HEALTH OF HEAD OF GOVERNMENT OR CHAIRMAN

    OF THE COMPANY

    3. OIL PRICES IN THE INTERNATIONAL MARKET.4. CHANGES IN EXCHANGE RATE5. BORDER TENSION6. STOCK BROKERS SCAM LIKE HARSHAD MEHTA AND KETHAN

    PAREKH

    7. STRIKES AND LOCK-OUT OF THE COMPANY.8. NEW BUDGET PROPOSALS9. LIBERLIZATION AND PRIVATIZATION OF THE COMPANY.

    SPECULATION:

    It involves the buying, holding, selling, short-term selling of stocks,

    bonds, commodities, currencies, collectible or any valuable financial

    instrument to profit from fluctuations in its price as opposed to buying it

    for use or for income via method like dividends or interest.

    Kinds of speculation

    Bull Market (Tejiwala):In case of that they purchase the shares at current prices to sell at a

    higher price in the near future and makes a profit if his expectations

    come true. He is also called a long buyer.

    Bear Market (Mandiwala):

    http://en.wikipedia.org/wiki/Image:National_Stock_exchange_Mumbai.JPGhttp://en.wikipedia.org/wiki/Image:National_Stock_exchange_Mumbai.JPG
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    He sells security in the hope that he will be able to buy them back at

    lesser price. It is also called short selling.

    Stag:He is that type of speculator who applies for a large number of shares in

    a new issue with the intention of selling them at a premium. He is bullish

    and very cautious.

    HIGHS AND LOWS OF BSE

    15,000, July 6, 2007 The Sensex on July 6,2007 crossed the magical figure of

    15,000 to touch 15,005 points in afternoon trade. Ittook seven months for

    the Sensex to move from 14,000 to 15,000 points.

    16,000, September 19, 2007 The Sensexscaled yet another milestone

    during early morning trade on September 19, 2007.Within minutes aftertrading began, the Sensex crossed 16,000, rising by 450 points from the

    previous close. The 30-share Bombay Stock Exchange's sensitive index

    took 53 days to reach 16,000 from 15,000

    17,000, September 26, 2007 The Sensex scaled yet another height during

    early morning trade on September 26, 2007.Within minutes after trading

    began, the Sensex crossed the 17,000-mark .

    18,000, October 09, 2007 The BSE Sensex crossed the 18,000-mark on

    October 09, 2007. It took just 8 days to cross 18,000 points from the 17,000mark. The market set several new records including the biggest single day

    gain of 789 points at close, as well as the largest intra-day gains of 993.

    19,000, October 15, 2007 The Sensex crossed the 19,000-mark backed by

    revival of funds-based buying in blue chip stocks in metal, capital goods and

    refinery sectors.The index gained the last 1,000 points injust four trading

    days.

    20,000, October 29, 2007 The Sensex crossed the 20,000 mark on the back

    of aggressive buying by funds ahead of the US Federal Reserve meeting.

    The index took only 10 trading days to gain 1,000 points after the indexcrossed the 19,000-mark on October 15. The major drivers were index

    21,000, January 8, 2008 The sensex peaks. It crossed the 21,000 mark in

    intraday trading after 49 trading sessions.However, it later fell back due to

    profit booking.

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    15,200, June 13, 2008 The sensex closed below 15,200 mark, Indian market

    suffer with major downfall from January 21,2008

    14,220, June 25, 2008 The sensex touched an intra day low of 13,731

    during the early trades, then pulled back and ended up at 14,220 amidst a

    negative sentiment.

    12,822, July 2, 2008 The sensex hit an intra day low of 12,822.70 on July

    2nd, 2008.This is the lowest that it has ever been in the past year. Six

    months ago, on January 10th, 2008, the market had hit an all time high of

    21206.70. This is a bad time for the Indian markets, although Reliance and

    Infosys continue to lead the way with mostly positive results.

    11801.70, Oct 6, 2008 The sensex closed at 11801.70 hitting the lowest in

    the past 2years.

    10527, Oct 10, 2008 The Sensex today closed at 10527,800.51 points down.

    14284.21, May 18, 2009 After the result of15th Indian general electionSensex gained 2110.79 points from the previous close of 12173.42 these

    creates a new history in Indian Market. In the Opening Trade itself sensex

    gains 15% from the previous day close this leads to the suspension of 2

    hours trade. After 2 hours sensex again surged this

    leads to the suspension of full day trading.

    There are some interesting points to note from the above data. Post

    2008 crash of about 50%, one can see how the markets have

    performed differently in each year. In 2009, the markets gave positivereturns of about 81%, in 2010 the returns were just 17% and in 2011

    the returns were down 24%. The interesting point to here is the

    average returns are about 20%, even after the 2008 crash and 2009

    boom. The lesson is pretty much clear - long term investing pays and

    one need not bother too much about the ups and downs of the

    markets.

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    Sensex falls

    Some major single-day falls of the Sensex have occurred on thefollowing dates

    January 21, 2008 --- 1,408.35 points Oct 24, 2008---1070.63 points March 17, 2008 --- 951.03 points July 6, 2009 --- 870 points January 22, 2008 --- 857 points February 11, 2008 --- 833.98 points May 18, 2006 --- 826 points October 10,2008 --- 800.10 points

    Moving Average of BSE SENSEX

    Current SharePrice

    21079.70

    Three Days 20882.70

    Five Days 20784.00

    Ten Days 20931.40

    Fifteen Days 20915.30

    Twenty TwoDays

    20770.60

    Thirty Days 20712.10

    Fifty Days 20727.80

    Hundred Days 19988.10

    Two HundredDays

    19674.90

    Share Price History of BSE SENSEX

    Date High Low Open Close Volume

    20/12/2013 21118.0 20745.9 20792.4 21079.7 101731404

    19/12/2013 21017.4 20646.0 20959.8 20708.6 108366051

    18/12/2013 20917.6 20568.7 20568.7 20859.9 111618233

    17/12/2013 20784.0 20595.0 20732.4 20612.1 104726527

    16/12/2013 20764.5 20637.8 20714.3 20659.5 96965120

    13/12/2013 20867.2 20692.7 20867.2 20715.6 120409910

    12/12/2013 21103.8 20901.5 21101.1 20925.6 116652357

    11/12/2013 21215.9 21069.4 21191.3 21171.4 112386541

    10/12/2013 21327.8 21175.1 21293.6 21255.3 185451071

    09/12/2013 21483.7 21282.6 21416.7 21326.4 132002451

    06/12/2013 21049.8 20922.4 20955.7 20996.5 109343002

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    DATA INTERPRATATION

    3. Occupation

    a) Service b) Business c) Student d) Other

    Sample of 50 members:

    Service 18

    Business 15

    Students 7

    Other 10

    0

    24

    6

    8

    10

    12

    14

    16

    18

    20

    service business students other

    Series1

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    4. Are you investing in Equity market?

    a) Yes b) No

    yes 38

    no 12

    0

    5

    10

    15

    20

    25

    30

    35

    40

    yes no

    Series1

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    5. What percentage of your investment is invested in equity

    market?

    a) Less than 25% b) 25-50%

    c) 51-75% d) More than 75%

    less than 25% 5

    25-50% 13

    51-75% 17

    76-100% 15

    0

    2

    4

    6

    8

    10

    12

    14

    16

    18

    less than 25% 25-50% 51-75% 76-100%

    Series1

    Series2

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    6. From how long you are investing in equity market?

    a) Less than 1 year b) 1 to 2 year/sc) 2 to 3 years d) More than 3 years

    less than

    1 year 10

    1 to 2

    years 9

    2 to 3

    years 17

    more than

    3 years 14

    0

    2

    4

    6

    8

    10

    12

    14

    16

    18

    less than

    1 year

    1 to 2

    years

    2 to 3

    years

    more than

    3 years

    Series1

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    7. Why do you invest in equity market?

    a. For quick short term gain b. For high long term gain

    For quick short term gain 28

    For high long term gain 22

    0

    5

    10

    15

    20

    25

    30

    1

    For quick short term gain

    For high long term gain

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    8. What attracts you towards equity market?

    a. High return b. Speculation

    c. Dividend d. Liquidity of invested fund

    High return 22

    Speculation 15

    Dividend 8

    Liquidity of invested fund 5

    0

    5

    10

    15

    20

    25

    High return Speculation Dividend Liquidity of

    invested fund

    Series1

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    9. What is the purpose of investment?

    a. To meet the cost of Inflation

    b. To earn return on idle resources

    c. To generate a specified sum of money for a specific goal in life

    d. To make a provision for an uncertain future

    To meet the cost of Inflation 4

    To earn return on idle resources 9

    To generate a specified sum of moneyfor a specific goal in life 20

    To make a provision for an uncertain future 17

    0

    5

    10

    15

    20

    25

    To meet the

    cost of Inflation

    To earn return

    on idle

    resources

    To generate a

    specified sum of

    money

    for a specific

    goal in life

    To make a

    provision for an

    uncertain future

    Series1

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    10. How much is your total investment annually?

    a. < 5000 b. 500010000

    c.10000 - 25000 d. 2500050000

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    11. How much of investment for equity?

    a. < 25% b. 25% - 50%

    c. 50% - 75% d. 75% - 100%

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    12. Generally which is the holding period of equity?

    a. Intraday b. Delivery

    Intraday 36

    Delivery 14

    0

    5

    10

    15

    20

    25

    30

    35

    40

    Intraday Delivery

    Series1

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    13. In which sector you invest most?

    a. IT b. Pharmacy c. Telecom

    d. Banking e. Petroleum f. Others

    I.T 6

    Pharmacy 9

    Telecom 10

    Banking 7

    Petroleum 13

    Others 5

    0

    2

    4

    6

    8

    10

    12

    14

    I.T Pharmacy Telecom Banking Petroleum Others

    Series1

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    14. What will be the future of equity market in India as per you?

    a. Bullish b. Bearish c. Cant say

    Bullish 12

    Bearish 15

    Can't say 23

    0

    5

    10

    15

    20

    25

    Bullish Bearish Can't say

    Series1

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    QUESTIONNAIRE

    1. Name:

    2. Age:

    3. Occupation

    a) Service b) Business

    c) Student d) Other

    4. Are you investing in Equity market?

    a) Yes b) No

    5. What percentage of your investment is invested in equity

    market?

    a) Less than 25% b) 25-50%

    c) 51-75% d) More than 75%

    6. From how long you are investing in equity market?

    b) Less than 1 year b) 1 to 2 year/sd) 2 to 3 years d) More than 3 years

    7. Why do you invest in equity market?

    b. For quick short term gain b. For high long term gain8. What attracts you towards equity market?

    a. High return b. Speculation

    c. Dividend d. Liquidity of invested fund

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    9. What is the purpose of investment?

    a. To meet the cost of Inflation

    b. To earn return on idle resources

    c. To generate a specified sum of money for a specific goal in life

    d. To make a provision for an uncertain future

    10. How much is your total investment annually?

    a. < 5000 b. 500010000

    c.10000 - 25000 d. 2500050000

    11. How much of investment for equity?

    a. < 25% b. 25% - 50%

    c. 50% - 75% d. 75% - 100%

    12. Generally which is the holding period of equity?

    a. Intraday b. Delivery

    13. In which sector you invest most?

    a. IT b. Pharmacy c. Telecom

    d. Banking e. Petroleum f. Others

    14. What will be the future of equity market in India as per you?

    a. Bullish b. Bearish c. Cant say

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    CONCLUSION

    With the increasing Globalization, the Stock Exchanges have

    tremendously affected the financial conditions of India.

    The stock markets of the future will have a redefined pupose and

    reinvented architecture due to the advent and widespread use of

    technology. Information and stock price quotations are available

    almost instantaneously, and, more importantly, investors can act on

    this data by executing a trade from anywhere at anytime. This new

    market will bring benefits to investors, the listed companies, and the

    economies of the company. Trading will become cheaper, faster and

    settlement will be simpler wit reduced risk. Raising capital forcompanies will become easier, thereby contributing directly to the

    Economic Growth.

    Already, BSE has shown its proactive response by increasingly using

    leading edge to technologies to effectively compete in the global

    environment. In the not too distant future, once full capital account

    convertibility is permitted in India, one could well witness an

    expansion of trading volumes and its resultant economic benefits tothe thriving and ever young metropolis of Mumbai.

    Inspite of all these positive predictions, the future of Stock Exchanges

    is likely to be uncertain and even their survival is a major question

    mark.

    With the increasing Globalization, the Stock Exchanges have

    tremendously affected the financial conditions of India.

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    The stock markets of the future will have a redefined pupose and

    reinvented architecture due to the advent and widespread use of

    technology. Information and stock price quotations are available

    almost instantaneously, and, more importantly, investors can act on

    this data by executing a trade from anywhere at anytime. This new

    market will bring benefits to investors, the listed companies, and the

    economies of the company. Trading will become cheaper, faster and

    settlement will be simpler wit reduced risk. Raising capital for

    companies will become easier, thereby contributing directly to the

    Economic Growth.

    Already, BSE has shown its proactive response by increasingly usingleading edge to technologies to effectively compete in the global

    environment. In the not too distant future, once full capital account

    convertibility is permitted in India, one could well witness an

    expansion of trading volumes and its resultant economic benefits to

    the thriving and ever young metropolis of Mumbai.

    Inspite of all these positive predictions, the future of Stock Exchangesis likely to be uncertain and even their survival is a major question

    mark.

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    METHODOLOGY

    METHODOLOGY ADOPTED

    In order to achieve the above objectives the following method of the

    data collecton has been adopted.

    Data Collection :

    The required data for above study is collected through sources.

    1. Primary Data

    2. Socondary Data

    1. Primary Data :

    Primary data refers to information that is generated to meet the

    specific requirements of the investigation at hand. This data is collected byme and my friends observation.

    The primary data collection is also conducted for more information needed

    for research purpose.

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    2. Secondary Data :-

    Secondary data is information that is collected for purpose other to

    solve the specific problem under investigation. This data may be available

    in the past records, reports or in any previous written documents, whichdocuments, which may include report of the surveys, pamphlets &

    newspapers.

    Secondary data is collected from the Journals, Magazines & Various

    reports available with the Environmental Studies. The data whatever is

    required is collected through Books.

    BIBLIOGRAPHY

    The information provided in this project have been taken from the

    following sources:

    WEBSITES

    www.indiainfoline.com www.countercurrents.org www.icfai.org www.bseindia.com www.moneycontrol.com www.indlaw.com www.sebi.gov.in www.bombayfirst.org

    http://www.indiainfoline.com/http://www.indiainfoline.com/http://www.countercurrents.org/http://www.countercurrents.org/http://www.icfai.org/http://www.icfai.org/http://www.bseindia.com/http://www.bseindia.com/http://www.moneycontrol.com/http://www.moneycontrol.com/http://www.indlaw.com/http://www.indlaw.com/http://www.sebi.gov.in/http://www.sebi.gov.in/http://www.bombayfirst.org/http://www.bombayfirst.org/http://www.bombayfirst.org/http://www.sebi.gov.in/http://www.indlaw.com/http://www.moneycontrol.com/http://www.bseindia.com/http://www.icfai.org/http://www.countercurrents.org/http://www.indiainfoline.com/
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    BOOKS

    Fundamentals Of Financial ManagementPRASANNA CHANDRA

    Portfolio Organizer ( The ICFAI University Press)