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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):
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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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25/40
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
-
8/13/2019 Bse with ques
26/40
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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27/40
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
-
8/13/2019 Bse with ques
28/40
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
-
8/13/2019 Bse with ques
29/40
10. How much is your total investment annually?
a. < 5000 b. 500010000
c.10000 - 25000 d. 2500050000
-
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30/40
11. How much of investment for equity?
a. < 25% b. 25% - 50%
c. 50% - 75% d. 75% - 100%
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31/40
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
-
8/13/2019 Bse with ques
32/40
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
-
8/13/2019 Bse with ques
33/40
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
-
8/13/2019 Bse with ques
34/40
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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35/40
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
-
8/13/2019 Bse with ques
36/40
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.
-
8/13/2019 Bse with ques
37/40
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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38/40
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/ -
8/13/2019 Bse with ques
40/40
BOOKS
Fundamentals Of Financial ManagementPRASANNA CHANDRA
Portfolio Organizer ( The ICFAI University Press)