INTRODUCTION TO INDUSTRY

INDIAN CAPITAL MARKET

The Indian capital market is more than a century old. Its history goes back to
1875, when 22 brokers formed the Bombay Stock Exchange (BSE). Over the
period, the Indian securities market has evolved continuously to become one of
the most dynamic, modern, and efficient securities markets in Asia. Today, Indian
market confirms to best international practices and standards both in terms of
structure and in terms of operating efficiency. Indian securities markets are
mainly governed by a) The Company’s Act 1956, b) the Securities Contracts
(Regulation) Act 1956 (SCRA Act), and c) the Securities and Exchange Board of
India (SEBI) Act, 1992. A brief background of these above regulations is given
below:
a) The Companies Act 1956 deals with issue, allotment and transfer of securities
and various aspects relating to company management. It provides norms for
disclosures in the public issues, regulations for underwriting, and the issues
pertaining to use of premium and discount on various issues.
b) SCRA provides regulations for direct and indirect control of stock exchanges
with an aim to prevent undesirable transactions in securities. It provides
regulatory jurisdiction to Central Government over stock exchanges, contracts in
securities and listing of securities on stock exchanges.
c) The SEBI Act empowers SEBI to protect the interest of investors in the
securities market, to promote the development of securities market and to
regulate the security market. The Indian securities market consists of primary
(new issues) as well as secondary (stock) market in both equity and debt. The
primary market provides the channel for sale of new securities, while the
secondary market deals in trading of securities previously issued. The issuers of
securities issue (create and sell) new securities in the primary market to raise
funds for investment. They do so either through public issues or private
placement. There are two major types of issuers who issue securities. The
corporate entities issue mainly debt and equity instruments (shares, debentures,
etc.), while the governments (central and state governments) issue debt securities
(dated securities, treasury bills). The secondary market enables participants who
hold securities to adjust their holdings in response to changes in their assessment
of risk and return. A variant of secondary market is the forward market, where
securities are traded for future delivery and payment in the form of futures and
options. The futures and options can be on individual stocks or basket of stocks
like index. Two exchanges, namely National Stock Exchange (NSE) and the
Stock Exchange, Mumbai (BSE) provide trading of derivatives in single stock
futures, index futures, single stock options and index options. Derivatives trading
commenced in India in June 20
SECURITIES AND EXCHANGE BOARD OF INDIA

In 1988 the Securities and Exchange Board of India (SEBI) was established by
the Government of India through an executive resolution, and was subsequently
upgraded as a fully autonomous body (a statutory Board) in the year 1992 with
the passing of the Securities and Exchange Board of India Act (SEBI Act) on
30th January 1992. In place of Government Control, a statutory and autonomous
regulatory board with defined responsibilities, to cover both development &
regulation of the market, and independent powers have been set up. Paradoxically
this is a positive outcome of the Securities Scam of 1990-91
The basic objectives of the Board were identified as:
 to protect the interests of investors in securities;
 to promote the development of Securities Market;
 to regulate the securities market and
 for matters connected there with or incidental thereto
SEBI has introduced the comprehensive regulatory measures, prescribed
registration norms, the eligibility criteria, the code of obligations and the code of
conduct for different intermediaries like, bankers to issue, merchant bankers,
brokers and sub-brokers, registrars, portfolio managers, credit rating agencies,
underwriters and others. It has framed bye-laws, risk identification and risk
management systems for Clearing houses of stock exchanges, surveillance
system etc. which has made dealing in securities both safe and transparent to the
end investor. Another significant event is the approval of trading in stock indices
(like S&P CNX Nifty & Sensex) in 2000. A market Index is a convenient and
effective product because of the following reasons:
 It acts as a barometer for market behaviour;
 It is used to benchmark portfolio performance;
 It is used in derivative instruments like index futures and index options;
 It can be used for passive fund management as in case of Index Funds.
Two broad approaches of SEBI is to integrate the securities market at the national
level, and also to diversify the trading products, so that there is an increase in
number of traders including banks, financial institutions, insurance companies,
mutual funds, primary dealers etc. to transact through the Exchanges. In this
context the introduction of derivatives trading through Indian Stock Exchanges
permitted by SEBI in 2000 AD is a real landmark.
Derivatives have been accorded the status of `Securities'. The ban imposed
on trading in derivatives in 1969 under a notification issued by the Central
Government was revoked. Thereafter SEBI formulated the necessary
regulations/bye-laws and intimated the Stock Exchanges in the year 2000. The
derivative trading started in India at NSE in 2000 and BSE started trading in the
year 2001.

FUNCTIONS OF SEBI

SEBI has been obligated to protect the interests of the investors and securities
and to promote and development of, and to regulate the securities market by such
measures as it thinks fit.
SEBI, in particular, has power for:-
a) Regulating the business in stock exchange and other securities markets;
b) Registering and regulating the working of stock-brokers, sub-brokers, share
transfer agents, banks to an issue, trustee of trust deals, registrars to an
issue, merchant banks, underwriter, portfolio managers, and other intermediaries
associated with the securities markets;
c) Registering and regulating of collective investment schemes including
mutual funds;
d) Promoting and regulating the working of self-regulatory organizations;
e) Prohibiting fraudulent and unfair trade practices relating to securities
markets;
 f) Promoting investor’s education and training of intermediaries of securities
market;
g) Prohibiting insiders trading in securities.

NATIONAL STOCK EXCHANGE (NSE)

With the liberalization of the Indian economy, it was found inevitable to lift the
Indian stock market trading system on par with the international standards. On
the basis of the recommendation of high powered Pherwani committee, the
National Stock Exchange was incorporated in 1992 by Industrial Development
Bank of India, industrial credit and investment corporations of India, Industrial
Finance Corporation of India, all Insurance Corporation, selected commercial
banks and others.
Trading at NSE can be classified under two broad categories:
a) Wholesale debt market and
b) Capital market.
Wholesale debt market operations are similar to money market operations –
institutions and corporation bodies enter into high value transaction in financial
instruments such as government securities, treasury bills, public bonds,
commercial paper, certificate of deposit, etc.
There are two kinds of players in NSE:
a) Trading members and
b) Participants.
Recognized members of NSE are called trading members who trade on behalf of
themselves and their clients. Participants include trading members and large
players like who take direct settlements responsibility.
Trading at NSE takes place through a fully automated screen-based trading
mechanism which adopts the principle of an order- driven market. Trading
members can stay at their offices and execute the trading, since they are linked
through a communication network. The prices at which the buyer and seller are
willing to transact will appear on the screen. When the prices match the
transaction will be completed and a confirmation slip will be printed at office of
the trading member.
NSE has several advantages over the trading exchanges. They are as follows:
 NSE brings an integrated stock market trading network across the nation.
 Investors can trade at he same price from anywhere in the country since
inter-market operations are streamlined coupled with the countrywide
access to the securities.
 Delay in communication, late payments and malpractice’s prevailing in the
traditional trading mechanism can be done away with greater operational
efficiency and informational transparency in the stock operations, with the
support of total computerized network.
Unless stock market provide professionalized service, small
investors and foreign investors will not be interested in capital market operations.
And capital market being one of the major sources of long term finance for
industrial projects, India cannot afford to damage the capital market path. In this
regard NSE gains vital importance in the Indian capital market system.

BOMBAY STOCK EXCHANGE (BSE)

Bombay Stock Exchange Limited is the oldest stock exchange in Asia with a rich
heritage. Popularly known as “BSE”, it was establish as “The Native Share &
Stock Brokers Association” in 1875. It is the first stock exchange in the country
to obtain permanent recognition in 1956 from the government of India under the
securities contracts (Regulation) Act, 1956. The Exchange’s pivotal and pre-
eminent role in the development of the Indian capital is widely recognized and its
index, SENSEX, is tracked worldwide. Earlier an association of persons (AOP),
the exchange is now a demutualised and corpotised entity in corporated under
the provisions of the company’s act, 1956, pursuant to the BSE (corporations and
demutualisation) Scheme, 2005 notified by the Securities and Exchange Board of
India (SEBI).
With demutualization, the trading rights and ownership rights have been de-
linked effectively addressing concerns regarding perceived and real conflicts of
interest. The exchange is professionally managed under the overall direction of
the board of directors. The board comprises eminent professionals, representative
of trading members and the managing directors of the exchange. The board is
inclusive and is designed to benefit from the participation of market
intermediaries.
In terms of organization structure, the board formulated larger policy issue
and exercise over all control. The committees and constituted by the board are
broad-based. They day to day operations of the exchange are managed by the
managing director and a management team of professionals.
The Exchange has a nation-wide reach with a presence in 417 cities and
towns of India. The systems and process of the Exchange are designed to
safeguard market integrity and enhance transparency in operations. During the
year 2004-05, the trading volumes on the Exchange showed robust growth.
The Exchange provides an efficient and transparent market for trading in
equity, debt instruments and derivatives. The BSE’s online trading system
(BOLT) is a proprietary system of the Exchange and is BS 7799-2-2002 certified.
The surveillance and clearing & settlement functions of Exchange are ISO 9001-
2000 certified.

DEPOSITORY SYSTEM

Depository system essentially aims at eliminating voluminous and cumbersome

paper work involved in the script-based system and offers scope for ‘paperless’
trading through state of-the-art technology. Depository system enables
conversion of physical securities in the electronic form through a process of’
dematerialization’ (also known as ‘demat’) of share certificates and facilitates
share transactions and transfers electronically without involving any share
certificate or transfer deed. Depository system offers option for converting the
shares from electronic form to physical or paper from through a process of
‘rematerialization’ (also known as ‘remat’).
Depositories in India
1. National Securities Depository Limited(NSDL)
It is an organisation promoted by UTI and National Stock Exchange of
India Ltd. The aim is to provide facilities for holding and handling securities in
electronic form. Subsequently; SBI (acquired a 4.76 per cent in NSDL), HDFC.
Bank, Deusche bank, Dena Bank, Canara Bank, Global Trust Bank, Standard
Chartered bank, Citibank NA and HSBC have acquired stake in NSDL. It
commenced its operations in November 1996. Its headquarter is situated at
Mumbai. It is holding and handling securities in electronic form. It facilitates
faster settlement cycles. It provides services related to transactions in securities.
It interfaces with the investors through its agents called depository participant
(DPs). As a depository, NSDL:
A) Acts as a custodian as well as legally transfer beneficial ownership,
B) Reduces settlement risk by minimizing the paper work involved in trading,
and settling and transferring securities.
NSDL offers the following benefits:
(a) dematerialization, (b) rematerialization, (c) electronic settlement trades in
stock exchanges connected to NSDL, (d) pledging/ hypothecation of
dematerialized securities against bank loan, (e) electronic credit of securities, (f)
receipt of non-cash corporate benefits such as bonus in electronic form, (g) other
services viz., holding debt instruments in the same account, availing stock
lending/ borrowing facility etc.
2.) Central Depository Services (India) Ltd. (CDSL).
It is the second depository in the country, after NSDL. It is promoted by the
Bombay Stock Exchange (BSE), Bank of India, Bank of Baroda, The NSDL.
HDFC Bank, State bank of India. The functions rendered by this depository is
almost similar that of the NSDL.

Selection of a Depository Participant:

To select a depository participant, one can consider the following factors.
1. Reputation of the institution.
2. Track Record.
3. Strength-as measured by net worth and capital adequacy.
4. Dedicated manpower.
5. Infrastructure
6. Safety
7. Convenience and networking
8. Hidden costs like opening a Savings Bank account with minimum balance.

Role of Depository:
Depository is an organization where the securities of an investor are held in
electronic form through the medium of Depository Participants (DPs). It enables
surrender and withdrawal of securities to and from the depository through the
process of demats and remats. Maintains investor’s holdings in electronic form.
Effect settlement of securities traded in depository made on the stock exchanges.
Carries out settlement of traders not done on the stock exchanges (off-market
trades).

Role of Depository participants:

A depository participant is a representative in the depository system of an
investor. As per the SEBI guidelines, financial institutions/banks/custodians/stock
brokers etc. can become depository participants provided they meet the necessary
requirements prescribed by SEBI. A depository participant is a first point of
contact with the investor. The depository participant serves a link between the
investor and the company through the depository in dematerialization of shares
and other electronic transactions.

De-materialization: It is a process by which company through the depository

takes share certificates of shareholders participant, verified and found in order;
dematerialization is confirmed by the company. The depository participant credits
equal number of shares to the account of shareholder as electronic holding. The
entire process of dematerialisation has to be completed within two weeks period
of time.

Re-materialization: Rematerialisation is a process of converting the electronic

holdings back into share certificates in paper form the process of
rematerialization is also carried out through the depositary participant. This
process has been completed within a period of 30 days.

Comparison between bank and depository:

A depository system functions very much like a banking system. The given chart
gives an analogy between the banking and depository system:
 Diagram: Flow process involved in the Depository System
In the flow process, various steps involved are:
Step 1:
Shareholders/investors approaches to a depository participant of his choice and
opens an account just like an account with a bank.. With the opening of account,
shareholder gets an identification number called “Client’s ID" which serves as a
reference point for all transactions and correspondence with the depository
participant. The shareholder fills up a Dematerialization Request Form (DRF) to
be provided by the depository participant and hands it over along with share
certificates duly cancelled by writing “Surrendered for dematerialization” to the
depository participant for demats. The DP will accept certificates registered only
in the name that holds the share certificates.
Step 2:
Upon receipt of DRF along with the original share certificates, the DP sends an
electronic request to company through Depository for conformation of demat and
simultaneously surrenders the shareholdings. DRF and share certificates are
accompanied standard letter to the company for demat confirmation.
Step 3:
A Company should be equipped with the requisite hardware/software facility. It
must be linked to the Depository network through a V-Sat connection.
Step 4:
On receipt of the DRF and share certificates of the shareholde,:” necessary
verification is done and demat is confirmed to depository.
Step 5:
The depository further confirms the demat to the shareholders’s DP.
Step 6:
DP credits the shareholders’account with the number of shares so dematerialized
and thereafter the shareholder holds the securities in electronic form. DP of the
shareholder gives statements of holdings and updates account after each
transaction just like bank account.

Electronic Transactions:
Once shareholder opens an account with the depository participant, he can buy or
sell shares in electronic form without any paper work. The shareholder need not
pay any stamp duty of 0.5% as applicable to scrip based transactions. The
depository participants charge the shareholder’s / investor’s acquaintance, a list
of service charges appended. A shareholder can
Open accounts with any number of DPs of his choice just as opening bank
account with a number of banks. Shareholder can trade in depository mode
through any broker registered with National Stock Exchange.
Pledging Facility:
Shareholders can pledge/ hypothecate shares held in electronic form by making
an application to his depository participant. Likewise, shareholder can also
request for closure of pledge/hypothecation. A number of banks have announced
that they will charge lower interest rates for loans against demate-rialized shares.
Reserve Bank of India has announced that the maximum amount of advances
against pledge of dematerialized securities has been allowed up to Rs. 20 lakhs.
Charges levied by a Depository:
1. Entry Fee
2. Annual Fees
3. Custody Charges
4. Remat Charges
5. Transaction Charges
6. Inter-depository Charges

Benefits of Depository System:

• Electronic transactions eliminate the problems and delays out scrip-based
system.
• There is no scope of any risk of loss, theft, damage or fraud.
• Bad deliveries are eliminated.
• A lot of paper work involved is avoided.
• There is no hassle of filling a transfer deeds and lodging/ dispatching the
transfer documents with the company.
• Shareholder no longer has to wait for the shares transferred in his name. Delay
is almost eliminated.
• This system totally eliminates risks associated with loss/ fraudulent interception
of share certificates in postal transit.
• Settlement process in case of purchases is very quick.
• Settlement process in case of sale is very fast.
• Shareholder saves stamp duty @ 0.5 per cent of the market value of shares. Of
course, he has to incur some service charges charged by the DPs.
• Investment is highly liquid at all times as there is shorter waiting period.
• The marketable lot for transaction in depository mode has been fixed as one
share. Therefore, the problem of odd lots is totally eliminated.
• Transmission of shares can be effected immediately.
• Transaction costs are generally lower than the physical segment
 INTRODUCTION OF COMPANY
Kotak Securities was set up in 1994 and it’s a subsidiary of Kotak Mahindra
Bank which is part of Kotak Mahindra Group. So first of all I will discuss about
the structure of Kotak Mahindra Group.

Kotak Mahindra Group

Kotak Mahindra is one of India's leading financial conglomerates, offering
complete financial solutions that encompass every sphere of life. From
commercial banking, to stock broking, to mutual funds, to life insurance, to
investment banking, the group caters to the diverse financial needs of individuals
and corporates.
The group has a net worth of over Rs. 5,824 crore, employs around 20,000 people
in its various businesses and has a distribution network of branches, franchisees,
representative offices and satellite offices across 370 cities and towns in India
and offices in New York, London, San Francisco, Dubai, Mauritius and
Singapore. The Group services around 4.4 million customer accounts.

One of India's top private sector banks, has cautioned Indian companies not to be
too exuberant about buying overseas acquisitions, and saying that prosperity for
the country's financial sector lay in domestic opportunities.
Kotak Securities Ltd.
Kotak Securities Ltd. is one of the oldest and leading stock broking houses in
India with a market Kotak Securities Ltd. has also been the largest in IPO
distribution.
The accolades that Kotak Securities has been graced with include:
 Awarded for Smart Order Routing by Banking Frontiers at FINNOVITI
2015
 'Best Performing Equity Broker in India - CNBC TV 18' – Optimix
Financial Advisory Awards, 2008
 'Best Brokerage Firm in India' by Asiamoney in 2007
 ‘The Leading Equity House in India’ in Thomson Extel Surveys Awards
for the year 2007
 Euromoney Award (2006 & 2007) - Best Provider of Portfolio
Management : Equities
 Avaya Customer Responsiveness Awards (2006) in Financial Institution
Sector
 Asiamoney Award (2006)- Best Broker In India
 Euromoney Award (2005)-Best Equities House In India
 Finance Asia Award (2005)-Best Broker In India
 Finance Asia Award (2004)- India's best Equity House
 Prime Ranking Award (2003-04)- Largest Distributor of IPO's
The company has a full-fledged research division involved in Macro Economic
studies, Sectoral research and Company Specific Equity Research combined
with a strong and well networked sales force which helps deliver current and up
to date market information and news.
Kotak Securities Ltd is also a depository participant with National Securities
Depository Limited (NSDL) and Central Depository Services Limited (CDSL),
providing dual benefit services wherein the investors can use the brokerage
services of the company for executing the transactions and the depository
services for settling them.
Kotak Securities has 877 outlets servicing over 4, 30, 000 customers and a
coverage of 321 cities. Kotaksecurities.com, the online division of Kotak
Securities Limited offers Internet Broking services and also online IPO and
Mutual Fund Investments.
Kotak Securities Limited has over Rs. 3300 crore of Assets under
Management (AUM) as of 31th March, 2008. The portfolio Management
Services provide top class service, catering to the high end of the market.
Portfolio Management from Kotak Securities comes as an answer to those who
would like to grow exponentially on the crest of the stock market, with the
backing of an expert
Account Types:
Kotak offers different account types according to user’s requirement:
1. Kotak Gateway
Kotak securities gateway account opens the gateway to a world of investing
opportunities for beginners. Kotak gateway user can trade anywhere, anytime
using internet.Kotak also offers call and trade facility.
They provide sms alert, research report, free news and market updates. Best
feature of Kotak gateway is call and trade facility. Anybody can activate Kotak
securities gateway account with any amount between Rs 20,000 to 5, 00,000.
This can be in form of cash deposit or the value of the shares you buy. Brokerage
will be charged based on the account type. For intraday trading brokerage is .06%
both sides for less then 25 lakhs and .023% for more then 25 crores.
2. Kotak Privilege Circle
This is the premium account for its users. Along with kotak gateway account
benefits they provides independent market expertise and support through a
dedicated relationship manager and a dedicated customer service desk which
provides assistance in opening accounts, handling day-to-day problems, and
more. They provides KEAT premium which is an exclusive online tool that lets
you monitor what is happening in the market and view your gains and losses in
real-time. One can activate Kotak securities privilege circle account with any
amount more than Rs. 10, 00,000/- as margin, by way of cash or stock. For
intraday trading brokerage is .06% both sides for less then 25 lakhs and .03% for
more then 25 crores.

3. Kotak High Trader

This is the best offer for daily trader or intraday traders. This is an Auto Square
Off product where you can enjoy the benefits of intra-day trading. Trader can get
the 6 times exposure on the margin. They provide all the benefits which kotak
gateway and privilege account provides. Trader can apply paper free order for
IPO. One can activate Kotak securities high trader with any amount less than Rs
5, 00,000/- as margin, by way of cash or stock. The minimum brokerage that is
applicable in the Kotak high trader account is 4 paisa on delivery and 4 paisa in
the cash segment.

4. Kotak Freeway
Frequent trader use this account type because freeway account enables it’s users
to trade as many times as they like - at a fixed brokerage. One can activate Kotak
securities freeway with any amount less than Rs. 1, 25,000/- as margin, by way of
cash or stock. They charge fixed brokerage of Rs.999/- a month and on delivery
transaction brokerage is .59% on less then 1lakhs and .18% on more then 2
crores.

5. Kotak Flat
This product is best suited for the needs of the Indian retail investor who actively
invests through the internet. Kotak flat introduces the international trend of
charging brokerages on per trade basis. Brokerage rate works up to 0.18% on
delivery trades and 0.018% for intraday trades.
6. Kotak Assist
This account most suits to long term investors. This account provides Complete
assistance on all your financial investment.
ORGANIZATION CHART OF KOTAK SECURITIES
 HYPOTHESIS TESTING
“Investment Strategy of investor depends on the movement in Stock
Market”.
The topic (Investment strategy of investor in stock market) is described those
fundamental and strategies of investor which taken by them while trading in
stock exchange. These strategies show that how an investor likes to invest his
money in stock market.
After the researcher conclude the research is proved to be NULL HYPOHESIS,
As the investment strategy of investor is not only derived by market movement
but also the company attributes, fundamental analysis, growth strategy etc.
To know about the investment strategies of investor researcher used various
sources to understand these things better. For this purpose researcher consult to
company guide, faculty guide, magazines (business standard, capital market)
newspaper (like economic times, business times), online and books and made a
questionnaire which was filled by those person who trade in stock market.
The questionnaire include that questions which show how and when a investor
like to invest money, What strategies he adopt when market is going up and going
down, what is the deciding factor while investing or trading in a company.
 PROJECT PROFILE
Project Title:
The task which was assigned to researcher by the company was “Investment
Strategies of investor in stock market” Investment strategies of investor describe
those fundamental planning which is used by an investor during his investment.
To know these strategies researcher used various sources and make a
questionnaire and fills it with those people who trade in stock market.

OBJECTIVE OF STUDY:
The main objective of conducting this research is as under:
 Understand the nature of stock market.
 Understand the psychology and sentiments of investor.
 Know the procedure of trading in stock market.
 Gathered the useful information from different kinds of investors.
 Know the investing behaviour in stock market.
 Know the deciding factor of investing money in stock market.

SCOPE AND SIGNIFICANCE OF THE STUDY:

The researcher completed the research on the topic of “ investing strategies of
Investor in stock market”. This is a very interesting and knowledgeable topic
for any other person. The research helps to know the investor behaviour in
terms of the trading and investment strategies used by investor in stock
market. The study completed on those people who live in Jaipur. The study
tells that how an investor trade in stock market.

SCOPE OF THE STUDY:

 Help to know researcher to know the market.
 Help to know the investor strategies for new researcher.
 Help to know the importance of demat account.
  Help to give idea of trading methods of investor who lives in Jaipur.

SIGNIFICANCE OF THE STUDY:

 Give the brief knowledge of kotak securities.
 Give the knowledge of stock market.
 Give the information related to investor strategy.
 Met the different kinds of people and know the nature of investment.
 Help to increase the knowledge related to market in practical manner.
INTRODUCTION TO THE STOCK

Stock represents a piece of ownership of a particular company. When we

purchase a stock of a company we immediately become one of its owners. As a
result we have right over the profits the company makes and some voting rights
depending on the type of the stock. So, if we consider the stock profitable and
beneficial we should strive to purchase as much shares of it as possible.

TYPES OF STOCK:
Basically, there are two types of stocks:
1. Common stocks- provide voting rights and dividends.
2. Preferred stocks - no voting rights are provided. However, if the company is
dissolved, stockholders that hold preferred stocks are the first to get dividends
and assets. This type of stocks is chosen by investors that prefer dividend income.
Class A vs. Class B Stocks
The company itself decides on the classes of stocks that are to be issued when it
goes public. Class A stocks are offered to the general public and give their
holders one vote per share, thus they are traded as common stocks.
On the other hand, the company may issue class B stocks that are offered only to
the company's founders. These stocks carry 10 votes per share. The goal is to
keep control of the company within the hands of the founders.

Daily Stock Price Establishment:

In the setting of the prices of actively traded stocks the laws of supply and
demand are followed. This means that when the demand is high (more buyers
than sellers) the price rises. The vice versa is true when the supply is higher than
the demand (more sellers than buyers).
The number of buyers and sellers is influenced by the following factors:
 Economic events
 Political events
 Natural disasters
If the magnitude of these events is significant, the overall conditions in the
market can be drastically changed.
Risk in Investing
Investing and risk go in hand. Risk can be defined as the price of the potential
reward we will get. Risk and reward follow a linear direction, which means the
higher the risk the greater the potential reward we will get from a particular
investment.
Thus, we should identify the level of risk we are willing and able to face.
Additionally, we should be able to determine the risk that a particular stock
carries so that we can determine whether it is worth purchasing it.
Finally, investments that are characterized with low levels of risk also bring
lower returns. So, we should determine for ourself whether we are willing and
able to take a lower risk and lower returns or risk more and potentially gain more.

IPO (INITIAL PUBLIC OFFERINGS):

IPOs represent one of the most closely observed events in the stock market since
they mark the inception of a new trading opportunity. Since every business starts
as a small enterprise, the new player on the stock market issues only a few stocks,
which results in a relatively small number of stockholders.
Company Registration
The first step a company should take in order to become publicly traded includes
registration with the Securities and Exchange Commission (the SEC). After this a
public offering is prepared, which should include a company's prospectus and
other legal documents that are required by the SEC.
Every potential investor has the right to receive a company's prospectus. The
latter represents a legal and accounting document, which explains in detail the
situation in the company, including information about the senior staff, majority
stockowners and the potential risks the company faces.

Setting the Price of the Stock:

After the company has registered with the SEC and met its other requirements,
the company should contact with an investment bank(s) and sign a contract for
the distribution of the shares the company is willing and able to sell. The other
contractors may agree to underwrite the distribution of shares. After this both
parties agree on an initial price at which the stocks to be opened for sale. This
price is based on the earnings or potential earnings of the company as well as its
growth. Additionally, considerations about the market's willingness to accept the
agreed price should be made.
After the contracts have been signed and the price considerations made, the
underwriters are ready to make the first offers to major broker clients. In turn
they offer these bundles of stocks to their big retail and institutional clients.
Along this chain every participant gets his/her reward.
Since the stock goes through several people until it reaches the final investors, its
final price may be well above the initially set price. This is especially true if the
company that issues the stock enjoys the status of being a hot deal.
As you can see individual investors suffer from such a system since at the time
the stock reaches their hands, its price is significantly above the IPO level.

TRADING IN SHARES

There are basically three ways to trading in shares. These are:

 Delivery based trading
 Intraday trading
 Trading in derivatives
a) future
b) options
1.Delivery based trading:
It is basically for investor ,who want to invest their money in shares as a
investment .firstly they purchases a particular stock and wait for increases the
prices of that particular stock or sell that particular stock when they need their
fund. Kotak securities ltd. is the place where you are in complete control. All
you have to do is login to your account and place your order at the desired price.
After order execution, the shares and the money would automatically be
debited/credited into your demat/bank account.

2.Intrading trading:
It is basically for trader, who trading in this type he has to covering the position
on the same day by buying/selling the shares. Kotak securities provide margin to
their client according to category to the stock.

3. Trade in derivatives:
FUTURE
In futures trading, investor take Buy/Sell position in index or stock contracts
having a longer contract period of up to 3 months. Trading in future is simple, If,
during the course of the contract life, the price moves in investor favour (i.e. rises
in case investor have to buy position or falls in case investor have a sell position),
make a profit.
Presently only selected stocks, which meet the criteria on liquidity and volume,
have been enabled for future. Calculated Index and know investor Margin are
tools to help in calculating investor margin requirements and also the index and
stock price movements.

OPTIONS
Some investors tend to sign option contracts, which include the right to buy or
sell securities when a certain price is reached. This is done when a particular date
is reached or even before this date. Options give owners the right to do so, but
they are not obliged to sell or buy a security under these conditions.
The following are some basic characteristics of options:
1. Options are sold in lots of 100. This means that if an option is sold at $3, then
you will have to pay $300 to buy options.
2. Options are identified by their date of expiration and the strike price (also
known as exercise price). The latter represents the price that is quoted in the
option contract. So, if you read "ABC May 30 Call", then this means that this is a
call option that will expire in May and its strike price is $30.
As a rule options expire on every third Friday of the month. If this Friday is a
holiday, then the expiration date will be on Thursday. So, the expiration date
represents the month in which the option is expected to expire by contract.

Types of Options
Generally there are two major types of options. The latter are traded just as
regular stocks.
Call Options
Under the conditions of call options, owners have the right to buy a security after
a particular price has been reached. This should be done at a particular date or
before it. Options have expiration date. So, investors usually buy call options if
they expect that the price of the stock is about to go up. In order to clarify the
idea, consider the following example. John anticipates that the stock price of
company ABC is about to increase. The current stock price is $30. So, he decides
to purchase a call option, which gives him the right to purchase 100 shares of the
stock during the following 60 days. The cost of the option is $100. Thus, if the
price really rises let's say to $35 before the option expires, then John will benefit
a profit of $4 per share.
Another tactic that John may undertake is to trade the option and enjoy the profit
without even purchasing the share of stock. However, if the price of the stock
falls, you will incur a loss of $100, which represents the cost of the option.
Put Options
Under the conditions of put options, owners have the right to sell a security after
a particular price has been reached. This should be done at a particular date or
before it. Put options are generally preferred if the price of the stock is expected
to fall before the option expires.
So, if an investor expects that the price of the stock is about to fall, s/he can short
the stock.
This is done by purchasing a put option giving the investor the right to sell shares
at a certain
price. Thus, when the price of the stock falls, the investor can purchase stock on
the open market at the new lower price and exercise the put option selling the
stock at the higher price.
Shorting the stock, however, carries a certain degree of risk and should be
exercised with caution. Finally, if you are a beginner investor, then it may be not
a good idea to use options as an investment tool, since they have many
complexities.

IMPORTANT TERMS USED IN SHARE TRADING:

1. Bid and Ask Prices
The stock exchanges are the places where the actual setting of the stock prices
happens. They are the places where bid and ask prices cross their ways and the
exchange serves as the intermediary between the two. So, as an educated investor
you should be acquainted with the meaning of bid and ask prices. Bid price is the
price announced by the buyer at which s/he is willing to purchase a stock. Ask
price is the price announced by the seller at which s/he is willing to sell a stock.
The major role of the exchange is to coordinate the bid and ask prices of buyers
and sellers. This service, of course, is not for free. Bid and ask prices are never
the same. In fact, the price announced by the seller (the ask price) is always
higher than the bid price. As a result you are required to pay the ask price in case
you have decided to purchase a stock and pay a higher price. On the other hand,
if you decide to sell a stock you will have to receive the bid price,

2. Short selling:
This term is applied if the investor anticipates a fall in the price of a stock. If this
is the case, the investor borrows a particular number of shares and sells them at
the still high price. When the price drops, the investor purchases stocks at the
lower price in order to repay his/her debt. As you can calculate money are left to
the investor, which represent his/her profit. However, if the investor's
expectations about a falling price are not met and instead the price rises, then s/he
will sustain losses.

TYPES OF ORDER

1. Market Orders
Under a market order, a stock is purchased at the prevailing market price by your
broker under your orders. The responsibilities of the broker are very limited,
which results in a lower commission for him.
2. Limit Order
You specify a particular price. This price level is used for the future stock trades.
For instance, your broker can purchase a stock at the specified price or below it.
On the other hand, s/he can sell a stock at the specified price or above it.
3. Stop Order
Under a stop order the broker executes a stock purchase when its price reaches a
level above the current market price. On the other hand, the broker executes a
stock sale when its price reaches a level below the current market price.
4. Day Order
Under the day order, the broker is required to execute the trade until the end of
the trading day. Failure to do so leads to unfilled order.
5. Fill or Kill
Under a fill or kill order, the broker is required to execute the trade at once.
Failure to do so results in an unexecuted order.
TYPES OF SHARES
Stock investing includes many terms with which every investor should become
familiar in order to make educated decisions. Additionally, the different shares,
such as authorized, treasury, outstanding and etc. have different characteristics.
Thus it is important to become acquainted with the different types of shares so
that you make successful investment choices.
Some of the major types of shares include:
 Authorized Shares
When a company is created it is authorized to issue a total number of shares of
stock, which is what is called authorized shares. The number is liable to changes
under the agreement of the shareholders. Additionally, not all authorized shares
have to be offered to the public and many companies decide to keep some of the
shares for later uses.

 Treasury Shares
These are the shares that the company doesn't offer to the public or the
employees. They are kept for other uses.

 Restricted Shares
This type of shares is used in different compensation plans. Additionally,
companies use restricted shares as part of various incentive plans for their
employees. In order to sell a restricted share, the holder should ask for the
permission of the SEC.

 Float Shares
Float shares are the shares that are traded on the open market. These are actually
the shares that investors trade with.
  Outstanding Shares
These shares include all the shares that a particular company has issued. These
include float shares as well as restricted shares.

PHASES OF THE BUSINESS CYCLE

The diagram shows the various phases of business cycles. 50 is the full
employment line. Above this line we see we see Boom as well as recession
phases while below this line we see depression and recovery phases of business
cycles. As the economy moves through the various phases shown in this chart,
investors need to change their investment strategy to take advantage of new
emerging opportunities.
Phase 1. The economy slows down below its long-term trend (below the 50 level
in this chart). During these times, there is a sharp fall in production, increase
in mass unemployment, falling prices, falling profits, low wages, investors
can expect inflation, bond yields, short-term interest rates, and commodities
to decline. It is that stage of business cycle in which the business is at the lowest
level.
Phase 2. It is that stage of business cycle in which rays of hope appear in the
minds of the businessmen and they feel that economic situation was not as bad as
it was in the phase 1. Businessmen thinks it better to start production,
increases in employment opportunities, new inventions and innovations take
place in such an atmosphere, short-term interest rates and commodities to
stop declining . Such changes are the signs of phases 2.

Phase 3. The economy is strong and growing at well above potential. During
these times, there is full employment, existence of high stocks, high
commodity prices, high profits, investors can expect inflation, bond yields,
short-term interest rates, and commodities to start rising. This phase of
business cycle is called ‘Boom’.

Phase 4. After the Boom has reached its peak the downward trend starts. During
these times, profits start declining, Businessmen stop orders for capital
goods, price start falling, all the activities are going to fall and they are
finally stopped, unemployment increases in all the industries and finally the
situation is converted into 1 phase of business cycle.

Our research shows investors need to change investment strategies when the
business cycle moves through the various phases. Each phase presents investment
opportunities and risks. Specific strategies need to be implemented to take
advantage of what is happening.
STOCK INVESTING STRATEGIES

There are several investing strategies for common stocks. Investor can choose for
himself the ones that best meet his needs and financial goals.

Investing Strategy 1- Buy and Hold

If investor choose this investing strategy he will have to purchase a stock and be
ready to hold it over a long period of time, since buy and hold strategy is based
on the assumption that the price of the stock will rise with time. However, due to
the dynamics of the market he can never be sure that this will happen. This
investing strategy elaborates on the idea that the market will continue to expand
due to its capitalist nature. As a result it assumes that the stock prices will
continue to rise and shareholders will enjoy higher dividends. The market
fluctuations and inflation levels are smoothed over the long-term. The advantage
of this investing strategy is that he pay less commission fees and taxes since he
trade less. he hold the stocks for a long time and don't trade on frequent basis.

Investing strategy 2 - Growth Investing Strategy

This strategy aims to identify the growth potential of a company. Companies with
high earnings growth are very attractive to investors who believe that such
companies will experience continuing rise in their stock price since more and
more investors will want to take advantage of the regular and large dividend
paying. One of the most important factors for consideration in growth investing
is the earnings per share of the company. Investors observe the changes in the
earnings per share over the years not neglecting the revenue growth as well. What
is more, in order to get a clear view on the willingness of the market to pay for a
given earnings growth, investors examine the relationship between the
price/earnings ratio and the annual earnings growth. Keep in mind that this
strategy carries a certain degree of risk, since the target companies are usually
young. However, as you know risk and reward go hand in hand, meaning the
higher the risk the higher the potential reward from the investment.

Investing Strategy 3 - Value Investing Strategy

Value investors are often referred to as bargain seekers. This means that they
search for stocks that are sold at a price that is below the real value of the
company. No matter what the current price of the stock is, be it $20 or $100, it
should be below the real value of the company. Value stocks are those that have
been overlooked by the market and as a result their price is lower.
The latter may be caused by the chasing of the market after stocks that are
currently considered to be more attractive. Generally, growth and value investing
are considered to be positioned in opposite sides of the investment spectrum.

Investing Strategy 4 - Timing the Market

The major idea behind market timing is the buying low and selling high. Market
timers believe that they can successfully predict the behavior of the market
regarding the price movement of stocks. This makes timing the market the
opposite of the buy and hold strategy. If you are to time the market, you should
familiarize yourself with such tools as technical and fundamental analysis as well
as even intuition. Most financial experts are against timing the market because it
is difficult to identify whether a particular stock price has reached its peak or
bottom. It may eventually go even higher or lower. Additionally, with the often
trades that are executed under this strategy commission fees will greatly reduce
your profits especially of you make frequent trades of small amounts. Another
disadvantage of timing the market is that in theory over the long-term the market
goes up. Therefore, it is better to stay fully invested during the time in order not
to miss the long-term stock rewards.
Investing Strategy 5 - GARP Investing Strategy
Growth at Reasonable Price (GARP) represents a combination between the value
and growth investing strategies. Therefore, applying this strategy will involve the
search of a stock that is both undervalued and has a potential for future growth.
You may find it difficult to find such a stock due to the opposing characteristics
of growth and value investing. However, it is not unattainable. Investors applying
this strategy use the PEG (price-to-earnings-growth) ratio as an indicator for a
stock that possesses a growth potential at a price that is below the real value of
the company. Generally, successful investors use the help of different systems to
distinguish the bad trades from the good ones.

PORTFOLIO ANALYSIS
The investment process consists of two tasks. The first task is security analysis
which focuses on assessing the risk and return characteristic of the available
investment alternatives. The second task is portfolio selection which involves
choosing the best possible portfolio from the set of feasible portfolios.
Portfolio theory, originally proposed by Harry Markowitz in the 1950s, and
he was the first person to show quantitatively why and how diversification
reduces risk.
Portfolio analysis considers the determination of future risk and return in
holding various blends of individual securities and it is necessary that use rational
asset allocation when building your portfolio. As a rule of thumb (or at least- one
of the rules), the percentage of stocks in your portfolio should not be higher than
100 minus your age in percentages (for example: if you are 40 years old, stocks
holding percentage should not be higher than 60%). Higher percentage could be
riskier considering the fact that you will eventually need to convert the stocks
into cash. Thus, diverse your portfolio with a rational blend of assets – stocks,
ETFs, bonds, and cash. Always keep some of your savings in cash or other risk-
free securities that would be available for usage in the short term (for emergency
situations or unpredictable events).
 That’s not all. It is also recommended to diversify the stock portion of your
portfolio as well. You never know in advance which sector would be the one to
get hit in the future. Thus, choose stocks from different sectors, different regions
around the globe (investing in the global marker is also a venue to consider), and
also in different kind of stocks – growth, value, dividends etc. This will protect
your portfolio from catching on fire even if few sectors or a specific region in the
world suffer from a temporary recession or economical weakness.

We shall use an example to show how efficient portfolios might be constructed;

 Sectoral Allocation:
STOCKS are often grouped by the size of the companies we can invest in big,
small or tiny. By size we mean a company's value on the stock market: the
number of shares it has outstanding multiplied by the share price. This is known
as market capitalization, or cap size. Big companies tend to be less risky than
small fries. But smaller companies can often offer more growth potential. The
best idea is probably to have a mix of funds that give you exposure to large-cap,
midsize and small companies.
 Large-Cap Stocks:
Large-capitalization Stocks are generally those companies with market values of
greater than $8 billion. Large-cap Stocks are less volatile than Stocks that invest
in smaller companies. Usually, that means you can expect smaller returns, but
lately, large caps have outperformed all others.
 Mid-Cap Stocks:
As the name implies, these stocks fall in the middle. They aim to invest in
companies with market values in the $1 billion to $8 billion range -- not large
caps, but not quite small caps, either. The stocks in the lower end of their range
are likely to exhibit the growth characteristics of smaller companies and therefore
add some volatility to these stocks. They make the most sense as a way to
diversify your holdings.
 Small-Cap Stocks:
Companies with market capitalization less than $1 billion, Smaller Companies
are those which are in the early stages of business and they are presumed to have
significant growth potential, but are not as financially strong as established as
larger companies on the other hand, Small cap companies can also be great
investment for those who can tolerate more risk and are looking for more
aggressive growth.

MARKET ANALYSIS
In a declining stock market (also called a bearish market), such as we have been
experiencing for the last several months, the first instinct of many investors is to
abandon their stock holdings and hide in the treasury bonds or cash shelters in
order to reduce their losses. It is a classic case of what financial professionals call
"chasing performance", meaning trying to jump onto a ship that may already have
sailed. There’s a better way to succeed when the stock market is slow or volatile:
a well-planned and executed policy of asset allocation built for the long term.
Asset allocation means building a long term portfolio composed of a mix of
securities including growth stocks, value stocks, bonds, T-bills (Treasury bill) and
cash, along with rebalancing of the portfolio from time to time. Asset allocation
is actually the opposite of market timing.
Some may claim that saying “long term investing works over the long term” is
too axiomatic. But, historical analysis of the market proves that this statement is
actually right, and that long term thinking is probably the best way to survive
periods of bear market.

Factors which are affecting the stock market:

1.) Demand and Supply –. The price is directly affected by the trend of stock
market trading. When more people are buying a certain stock, the price of that
stock increases and when more people are selling he stock, the price of that
particular stock falls. Now it is difficult to predict the trend of the market but
 your stock broker can give you fair idea of the ongoing trend of the market but
be careful before you blindly follow the advice.

2.) News – News is undoubtedly a huge factor when it comes to stock price.
Positive news about a company can increase buying interest in the market
while a negative press release can ruin the prospect of a stock. Having said that,
you must always remember that often times, despite amazingly good news, a
stock can show least movement. It is the overall performance of the company that
matters more than news. It is always wise to take a wait and watch policy in a
volatile market or when there is mixed reaction about a particular stock.

3.) Market Cap – If you are trying to guess the worth of a company from the
price of the stock, you are making a huge mistake. It is the market capitalization
of the company, rather than the stock, that is more important when it comes to
determining the worth of the company. You need to multiply the stock price with
the total number of outstanding stocks in the market to get the market cap of a
company and that is the worth of the company.

4.) Earning Per Share – Earning per share is the profit that the company made
per share on the last quarter. It is mandatory for every public company to publish
the quarterly report that states the earning per share of the company. This is
perhaps the most important factor for deciding the health of any company and
they influence the buying tendency in the market resulting in the increase in the
price of that particular stock. So, if you want to make a profitable investment,
you need to keep watch on the quarterly reports that the companies and scrutinize
the possibilities before buying stocks of particular stock.

5.) Price/Earning Ratio - Price/Earning ratio or the P/E ratio gives you fair idea
of how a company’s share price compares to its earnings. If the price of the share
is too much lower than the earning of the company, the stock is undervalued and
it has the potential to rise in the near future. On the other hand, if the price is way
too much higher than the actual earning of the company and then the stock is said
to overvalued and the price can fall at any point.

6.) Economic Factors: Corporate earnings and news, political news, and general
market sentiment can all move the market. But economic factors have the most
influence on long-term market performance. Of all the economic indicators, the
three most significant to stock market investors are inflation, gross domestic
product (GDP), and labour market data.
A.)INFLATION: Inflation is a significant indicator for securities markets
because it determines how much of the real value of an investment is being lost,
and the rate of return you need to compensate for that erosion. For example, if
inflation is at 3% this year, and your investment also increases by 3%, in real
terms you have just managed to stay even. And to take on market risk, most
individuals require a “risk premium” above and beyond the inflation rate. So
investors who buy stocks do so expecting they will get a return equal to (or better
than) that risk premium adjusted by the inflation rate. So the higher the inflation
rate, the higher nominal return is needed for a stock price to remain the same.
There are many causes of inflation. From a supply-demand standpoint, it can be
due to increased demand for a particular product, from an increase in a
company’s cost of supplies, or from limited supplies (like OPEC members
restricting oil supplies), or even just due to fear that supplies might be limited at
some point in the future. But the single most important determinant of inflation
is the output gap, which is the balance between supply and demand in the
economy. But the effect inflation has on the stock market is even more
complicated than that. The main impact of inflation on stock prices actually
comes from the effect it has on a company’s earnings. Low inflation keeps a
company’s costs down, and increases profits. So all other things being equal, (a
favorite phrase of all economists), low inflation is better for the market than high
inflation.
B.) GROSS DOMESTIC PRODUCT: While GDP is an important component
in inflation, it is also important as an economic indicator in its own right. When
compared to the previous year’s reading, it tells you how fast the economy is
growing (or contracting). GDP is the dollar value of all goods and services
produced by a given country during a certain period. It is measured by either
adding all of the income earned in an economy, or by all the spending in an
economy. Both measures should be roughly equal.Gross domestic income
includes wages and salaries, corporate profits, interest collected by lenders, and
taxes collected by governments.
GDP domestic expenditures includes consumer spending, housing investment,
government spending, business spending (investment in factories, equipment, and
inventory), as well as foreign spending on our exports minus our spending on
their imports. Any significant change in the GDP, either up or down, can have a
major effect on investing sentiment. If investors believe the economy is
improving (and corporate earnings along with it) they are more likely to pay
more for a given stock. If there is a decline in GDP (or investors expect a
decline) they would be willing to pay less for a given stock, leading to a decline
in the stock market.
C.)THE LABOUR MARKET: The final major factor influencing the economy
is the labour market. The key indicators most investors focus on are total
employment and the unemployment rate. US citizens who are already working
represent the employed, while those who are actively looking for work, but
haven’t found it yet, are the unemployed. The unemployment rate does not
include people without jobs who are not looking for jobs, such a retirees or just
people who are discouraged and have given up trying to find a job.
Before we conclude this discussion on share prices, there are so many other
reasons behind the fall or rise of the share price. Especially there are stock
specific factors that also play its part in the price of the stock. So, it is always
important that you do your research well and stock trading on the basis of your
research and information that you get from your broker.
RESEARCH METHODOLOGY

Research methodology can be defined as “A careful investigation or inquiry

especially through search for new facts in any branch of knowledge.”
Research methodology is a way to systematically solve the research problem. It
may be understood as a science of studying how research is down scientifically.
Research methodology is a technique to solve a problem logically.

TYPE OF UNIVERSE:
Finding the strategy of investor were basically who are investing and trading in
stock market. The universe comprised of the number of investor and it can be
considered homogenous in Nature to a great extent.

RESEARCH DESIGH:
The research was “descriptive” in nature as it dealt with describing the market
and investing strategies of investors in stock market. The research was designed
to know about the potentiality of the stock market at Jaipur and also the survey of
the investors to know about their strategy, the psychological factors associated
the stock market, the strategy they are using in the stock market in terms of
fluctuation in the market. The research was carried out after making a
questionnaire which is fulfilled by those peoples who trade in stock market.

SAMPLE DESIGN:
The first step in order to accomplish the task was to draw a sample. To serve this
purpose, the sampling technique adapted was “Stratified Random Sampling”.
For that purpose researcher surveyed many places at Sharekhan Pvt.Ltd. and met
those people who trade in stock market for the purpose of minimizing the bias
and maximizing the reliability of the data. Also, by adopting this procedure it was
ensured that sample drawn would have the same composition and characteristics
of the population.
SIZE OF THE SAMPLE;
Population of research was homogenous in nature to a large extent, hence a
sample size of 50 respondents were taken into account to achieve the objective of
the study.

METHOD OF DATA COLLECTION:

There are two types of data;
 Primary Data
 Secondary Data
Data used during research is a primary data and collected through the
questionnaire filled by the consumers. The other sources of data collection is
through interview of the persons who trade in the stock market.

LIMITATION OF STUDY;
 Lack of time period
 Result of the research is not applicable on the whole investors.
 Hard to reach online customers.
 Hard to fine the forex investors and ncdex investors.
 Research is conducted only out of some brokerage house.
 The process of reach the is so hard.
 Lack of interest disposed by respondents.
 The sector will not remain same at all time. They will change according
to time.
Data and Data Analysis

Q1. Do you invest in stock market?

45%
Yes
No
55%

Interpretation:
The researcher met people and firstly he asked that “Are they investing their money in stock
market or not” because this is necessary to know of him for their research and the result is 45%
are people are investing their money in stock market and 65% are not investing their money in
this.
Question Yes No
|||| |||| |||| ||||
Do you invest in stock market |||| |||| |||| ||||
|||| ||||

Q2. How long you are investing in stock market?

 10%
28%
14% Less than 1 yr
1-5 yrs
5-10 yrs
More than 10 yrs
48%

Interpretation:

The researcher met those people who are trading in stock market to know the
time period. According to him there are 28% people who are working in stock
market since less than 1 year like this there are 48% people who are working
since 1 to 5 years, 14% people are working since 5 to 10 years and 10 % people
working in stock market since more than 10 years.

Q3. Which type of trading do you trade in stock market?

Interpretation:

There are three option of trading in stock mardet:1) Intraday(buy today sell
today), 2) Delivery and Future and Options. There were 14% investor trade in
Intraday, 13% in Delivery, 6% in Future & Options, 41% in Intraday and
Delivery, 11% in Intraday and Future & Options and 4% in Delivery and Future
& Options and 11% investors in Intraday, Delivery and Future & Options.

Q4. What factors affect your strategy of Investment?

Interpretation:

Every investor thinks before investing money in any kind of investment. In stock
market whenever and however an investor invest money he just think about that
where he is investing his money in good company or not. So every investor has
some strategy before investment. There are 14% investment on the basic of brand
name of the company, 40% investor watch the growth of the company, 8%
investment see the investment of the company, 12% investor take the decision of
investment on the basic of price of shares and 26% investor invest money after
watch on annual result or report of the company.

Q5. In which particular sector do you invest your money?

Interpretation:

There are 23 sectors in stock market but researcher take some sector from them
those are running on boom at present. As per the matter of investment in different
types of sectors of the investors invest money in more than one sector. There are
54% investors who in more than one sector, 14% are like to invest to invest in
Bank, 10% are in IT, 6% are in Real Estate, 10% are in Petrolium and 6% are in
retail sector.

Q6. When would you like to invest your money?

Interpretation:

In stock market 68% investor like to invest there money in Falling Time. Because
that time the price of share is going to less and investor thinks is the right time of
investment. It is a fact that most of the investor in stock market are like to buy
shares at minimum price. There are 32% investors believes investing there money
in Raising Time. Because in raising time these investors thinks that market is
going more up so they like to buy share that time.

Q7. What strategy do you adopt when market is going up?

Interpretation:

When the market is going up 68% investors sell out there shares and short sell the
shares. Investors who trade on Delivery basis they sell out there shares on the
higher price as compare to buying price of shares so that they get returns in
higher market and investor who trade on intraday basis they short sell the shares
and waiting for the down of price of short sell share and buy them to make profit.
24% like to buy the shares when market is going up.8% investors does not want
to trade at this time. They just wait and watch the market.
Q8. What strategy do you adopt when market is going down?

Interpretation:

When market is going down 74% investors like to buy at this time. The reason
being most of the investors like to purchases shares at minimum price,8%
investors sell out their shares that time reason being the limit of trading, capacity
of facing loss and fear of market can go down more,18% investors are waiting for
right investment at right time.

Conclusion, Finding and Suggestions

Conclusion

 It is very difficult to predict the stock market.

 Market fluctuation plays an important role in investment.
 Most of the people have same strategies.
 All strategies fail when market is suddenly turned.

Finding

 According to many persons Stock Exchange is a place of high risk and

high return.
 Most of the people are trade according to themselves.
 Company growth and annual result plays a crucial role in investment.
 Investment in long turm is safe and gives secured returns.

Suggestions

 Think before investment.

 Try to take others opinion related to market.
 Do not try to earn as soon as earliest.
 Try to invest in those companies which are growing up.
QUESTIONNAIRE
NAME…………………………………………………………
OCCUPATION….......................CONTACTS NO…...............

Monthly Income:
1) Less than 15000 2) 15000-25000
3) 25000-40000 4) Greater than 40000

1. Do you invest in stock market?

a) Yes b) No

2. How long you are investing in stock market?

a) Less than 1 yr b) 1-5 yrs
c) 5-10 yrs d) above 10 yrs

3. In which activity of stock market do you trade and how?

a) Intraday b) Delivery c) F & O
d) Intraday and delivery e) Intraday and F & O
f) Delivery and F & O g) all these

4. Which among the following is the deciding factor before

Your investment (rate the following):

Items
 Rating
 T.V.
 Online
 Broker
 Self
 Newspaper
 Friends & Relatives
5. What factor effect your strategy of investment?
a) Company’s name b) Growth
c) Investment d) Price of share
e) Company’s annual results

6. In which particular sector does u invest your money?

a) Bank b) IT
c) Real Estate d) Petroleum
e) Retail f) others

7. When would you like to invest your money?

a) Raising time b) Falling time

8. What strategy do you adopt when market is going to be increase or in

bullish market?
a) Sell b) Purchases
c) None

9. What strategy do you adopt when market is going to decrease or in bearish

market?
a) Sell b) Purchases
c) None
BIBLIOGRAPHY

BOOKS:
 C.R.KOTHARI, RESEARCH METHOLODOGY.
 V.K. BHALLA, INVESTMENT MANAGEMENT.
 L.M.BHOLE, FINANCIAL ISTITUTIONS AND MARKET.

MAGAZINES:
 BUSINESS TODAY
 BUSINESS WORLD

NEWSPAPERS:
 ECONOMICS TIMES
 TIMES OF INDIA

WEBSITES:
 www.google.com
 www.kotaksecurities.com
 www.nseindia.com
 www.moneycontrol.com
 www.invetopedia.com