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1. EXECUTIVE SUMMARY
RELIGARE is a premier integrated financial service provider and is ranked among the topin the country in all its business segments. It provides services over 75,000 individualinvestors in various capacities and provides investor services to over 500 corporate.
The present project titled A study on Investors attitude towards equity market wasconducted on behalf of RELIGARE at Bangalore. This study was aimed to know the preinvestment and post investment behavior of the investor in the equity market.
The research methodology adopted in this research work is descriptive type. The secondarydata are obtained from newspapers, text books, websites and various journals. The researchaimed to make an attempt to understand the behavior of the investors towards the equitymarket and its products.
In the research we have been using techniques such has Technical analysis and
fundamental analysis to help them decide on the stock investment patterns. They alsocontinuously monitor their investments and take decisions whether to continue to hold or dispose off their stocks.
The survival and viability of broking companies largely depends on the efforts made themto minimize its cost and enhance operational efficiency. RELIGARE can achieve the top
players position in the market provided it concentrate more on quality of services andattracting more investors. By doing so it will be in a position to perform better and also
meet the requirement of its investors.
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PART-A1. INDUSTRY PROFILE
History of the Stock Market
Stock markets refer to a market place where investors can buy and sell stocks.
The price at which each buying and selling transaction takes is determined by the market
forces (i.e. demand and supply for the particular stock. Indian Stock Markets are one of
the oldest in Asia. Its history dates back to nearly 200 year ago. The earliest records of
security dealing in India are meager and obscure.
By 1830s business on corporate stocks and shares in Bank and Cotton presses
took place in Bombay. Though the trading list was broader in 1839, there were only half
a dozen brokers recognized by banks and merchants during 1840 and 1850. The 1850s
witnessed a rapid development of commercial enterprise and brokerage business attracted
many men into the field and by 1860 the number of brokers increased into 60.
In 1860-61 the American Civil War broke out and cotton supply from United
States of Europe was stopped; thus, the Share Mania in India begun. The number of
brokers increased to about 200 to 250. However, at the end of the American Civil War, in
1865, a disastrous slump began ( for example, Bank of Bombay Share which had touched
Rs 2850 could only be sold at Rs.87 ). At the end of the American Civil war, the brokers
who thrived out of Civil War in 1874, found a place in a street (now appropriate called as
Dalal Street where they would conveniently assemble and transact business.
In 1887, they formally established in Bombay, the Native Share and Stock
Brokers association (which is alternatively known as The Stock Exchange). In 1895,
the Stock Exchange acquired a premise in the same street and it was inaugurated in 1899.
Thus, the Stock Exchange at Bombay was consolidated.
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Thus in the same way, gradually with the passage of time number of exchange were
increased and at currently it reached to the figure of 24 stock exchange. A person holdingassets (securities/funds), either to meet his liquidity needs or to reshuffle his holding in
response to change in his perception about risk and returns of the assets, decides to buy or
sell the securities. He selects a broker and instructs him to place buy/sell order on an
exchange. The order is converted to a trade as soon as it finds a matching sell/buy order. At
the end of the trade cycle, the trades are netted to determine the obligation of the trading
members securities/funds as per settlement cycle. Buyers/ seller delivers funds/securities
and receives securities /fund as per settlement cycle. Buyer/seller delivers funds /securities
and receives securities/funds and acquires ownership of the securities.
A securities transaction cycle is presented above. Just because of this Transaction
cycle, the whole business of securities and stock broking, the business of Online Stock
broking/ Online Trading/E-Broking has emerged.
Milestone of the Indian stock market:
One of the oldest stock markets in Asia, the Indian Stock Markets has a 200 years old
history.
Post Independence Scenario:
18 century East India company was the dominant institution and by end of the century
business in its loan securities gained full momentum
1880s Business on corporate stocks and shares in bank and cotton presses started in
Bombay. Trading list by the end of 1839got broader
1840s Recognition from banks and merchants to about half a dozen brokers.
1850s Rapid development of commercial enterprise saw brokerage business attracting
more people into the business
1860-61 The American civil war broke out which caused a stoppage of cotton supply from
united state of America. Marking the beginning of the share mania in India
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1862-63 The number of brokers increased to about 200 to 250
1865 A disastrous slump began at the end of the American civil war (as an example. Bank
of Bombay share which had touched Rs2850 could only be sold at Rs 87)
Pre-Independence Scenario - Establishment of Different Stock Exchanges
1874s with rapidly developing share trading business, brokers used together at a street
(now well known as Dalal Street ) for the purpose of transacting business.
1875s The native share and stock brokers association (also known as the Bombay Stock
Exchange) was established in Bombay
1880s Development of cotton mills industry and setup of many others
1894s Established of the Ahmadabad share and stock brokers association.
1880-90s Sharp increase in share prices of jute industries in 1870s was followed by a
boom in tea stocks and coal.
1908s The Calcutta stock exchange association was formed.
1920s Madras witnessed boom and business at The madras stock exchange was
transacted with 100 brokers.
1923 When recession followed number of brokers comes down to 3 and exchange wasclosed down.
1934 Establishment of the Lahore stock exchange
1936 Merge of the Lahore stock exchange with the Punjab stock exchange
1940 Uttar Pradesh stock exchange Ltd and Nagpur stock exchange Ltd was established
1944 Establihment of The Hyderabad stock exchange Ltd
1947 Delhi stock and share brokers association Ltd and The Delhi stock and share
exchange Ltd were established and later on merged into The Delhi stock exchange
association Ltd.
The depression witnessed after the Independance led to closure of a lot of
exchanges in the country. Lahore Stock Exchange was closed down after the partition of
India, and later on merged with the Delhi Stock Exchange. Bangalore Stock Exchange
Limited was registered in 1957 and got recognition only by 1963. Most of the other
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Exchanges were in a miserable state till 1957 when they applied for recognition under
Securities Contracts (Regulations) Act, 1956. The Exchanges that were recognized under
the Act were:
1. Bombay 2. Delhi
3. Calcutta 4. Hyderabad
5. Madras 6. Bangalore
7. Ahmadabad 8. Indore
Many more stock exchanges were established during 1980's, namely:
1. Cochin Stock Exchange (1980)
2. Uttar Pradesh Stock Exchange Association Limited (at Kanpur, 1982)
3. Pune Stock Exchange Limited (1982)
4. Ludhiana Stock Exchange Association Limited (1983)
5. Gauhati Stock Exchange Limited (1984)
6. Kanara Stock Exchange Limited (at Mangalore, 1985)
At present, there are twenty one recognized stock exchanges in India which does not
include the Over The Counter Exchange of India Limited (OTCEI) and the National Stock Exchange of India Limited (NSEIL).
Government policies during 1980's also played a vital role in the development of
the Indian Stock Markets.
Indian stock exchange allows a member broker to perform following activities:
1. Act as an agent,
2. Buy and sell securities for his clients and charge commission for the same,3. Act as a trader or dealer as a principal,
4. Buy and sell securities on his own account and risk.
TYPES OF STOCK MARKET
1. National stock exchange
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2. Bombay stock exchange
1. National stock exchange:
In order to lift the Indian stock market trading system on par with the international
standards. On the basis of the recommendations of high powered Pherwani Committee, the
National Stock Exchange was incorporated in 1992 by Industrial Development Bank of
India, Industrial Credit and Investment Corporation of India, Industrial Finance
Corporation of India, all Insurance Corporations, selected commercial banks and others.
NSE provides exposure to investors in two types of markets, namely:
Wholesale debt market.
Capital market.
Wholesale Debt Market - Similar to money market operations, debt market operations
involve institutional investors and corporate bodies entering into transactions of high value
in financial instruments like treasury bills, government securities, commercial papers etc.
Trading at NSE
1. Fully automated screen-based trading mechanism
2. Strictly follows the principle of an order-driven market
3. Trading members are linked through a communication network
4. This network allows them to execute trade from their offices
5. The prices at which the buyer and seller are willing to transact will appear on the
screen
6. When the prices match the transaction will be completed
7. A confirmation slip will be printed at the office of the trading member
Advantages of trading at NSE
1. Integrated network for trading in stock market of India
2. Fully automated screen based system that provides higher degree of transparency
3. Investors can transact from any part of the country at uniform prices
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Financing: One of the primary advantages of listing on the BSE is the ease of
financing by raising additional capital in the capital markets.
Media attention: Listing on the BSE is accompanied by particularly significant
attention from the local media, according to experience, in comparison with listing
on other exchanges;
Liquidity: In an international comparison, the BSE offers considerable market
liquidity;
Heightened consumer awareness and confidence: Presence on the BSE improvesconsumer awareness and confidence and improves company marketability and
recognition;
Visibility: Listing on the BSE ensures greater visibility in comparison with listing
on larger foreign stock markets;
Index membership and the associated additional demand for equity: A
company that might be considered mid-cap at best on a foreign market could beconsidered a leading equity on the BSE, and as such would likely be included in the
BUX, the BSEs main equity index. This is in contrast to listing on a foreign
market, where the conditions for inclusion in a main index usually cannot be
fulfilled. Considering that domestic institutional investors typically invest pooled
funds into a portfolio with the same weighting as the BUX index, this undoubtedly
creates additional demand for the shares of the company;
High ratio of foreign investors: Foreign investors have a strong presence on theHungarian stock market, representing about 70-80% of the BSEs equity
capitalisation and its turnover. Foreigners can therefore trade shares on the BSE as
easily as on any other large foreign market;
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Allowances in equity listing fees: The BSE waives all listing fees in case of equity
listings. As an additional incentive, the BSE also waives listing maintenance fees in
the quarter when the equity listing takes place and in the quarter that follows.
2. COMPANY PROFILE
A. Background and inception of the company
Our Company was originally incorporated as Vajreshwari Cosmetics Private
Limited on January 30, 1984.For details on our Promoters, see the sections titled Our
Promoters and Promoter Group and Our Management beginning on pages 105 and 92,respectively the name of our Company was subsequently changed to Religare Enterprises
Private Limited pursuant.
To a special resolution of our shareholders dated January 10, 2006. The fresh
certificate of incorporation consequent to the change of name was granted to our Company
on January 31, 2006, by the Registrar of Companies, Punjab, and Himachal Pradesh &
Chandigarh at Jalandhar.
The status of our Company was changed to a public limited company by a special
resolution of the members dated July 14, 2006. The fresh certificate of incorporation
consequent to the change of name was granted to our Company on August 11, 2006, by the
Registrar of Companies, NCT at New Delhi.
At the time of incorporation, the main object of our Company was to purchase,
sell, import, export, manufacture, pack, replace or otherwise deal in all types of tooth paste,
tooth brush, face powder, face cream and other cosmetics.
Religare is an emerging markets financial services group with a presence across
Asia, Africa, Middle East, Europe, and the Americas. In India, Religares largest market,
the group offers a wide array of products and services including broking, insurance, asset
management, lending solutions, investment banking and wealth management. With
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10,000-plus employees across multiple geographies, Religare serves over a million clients,
including corporate and institutions, high net worth families and individuals, and retail
investors.
Trading in Equities with Religare truly empowers you for your investment needs.
We ensure you have a superlative trading experience through -
A highly process driven, diligent approach
Powerful Research & Analytics and
One of the "best-in-class" dealing rooms
Further, Religare also has one of the largest retail networks.
The Religare Edge
Pan India footprint
Powerful research and analytics supported by a pool of highly skilled research
analysts
Ethical business practices
Offline/Online delivery models
Single window for all investments needs through your unique Customer Relationship Number
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B. NATURE OF BUSINESS CARRIED
Religare Enterprises Ltd . is an India based financial services company with
operations around the globe. Commonly referred to as Religare, the company offers a
range of financial services through its group companies. The services offered include
broking, insurance, asset management, lending solutions, investment banking and wealth
management. Serving over a million clients, Religare has around 15 billion dollars of
assets under management.
The Religare group of companies includes Religare Capital Markets, Religare
Securities, Religare Broking, Religare Online, Religare Invest, Religare Finmart, Religare
Insurance, Religare Health Insurance, Aegon Religare, Religare Mutual Funds, Religare
Macquire, and Milestone Religare.
Timeline of the company
2006
Religare inks pact with AEGON, set up AMC, enter insurance Religare gets licence for merchant banking
2007
Religare seeks mandate to invest in realty
Religare launches new online trading portal IndusInd Bank ties up with Religare, to offer online trading
Religare plans IPO of 11.36 cr Religare Arts initiative to help promote galleries, artists
2008
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Religare to sell stake in NBFC arm for Rs 500 cr
Religare Finvest gets top ICRA rating
Religare-Aegon AMC gets in-principle nod Indias first regulated film fund set to make entry, Religare in pact with Vistaar on
Rs. 200 crore
Religare to buy UK's Hichens for Rs 396 cr
2009
Religare Bags LIPPER-STARMINE Award Religare MF announces dividend
Aegon Religare entering into health insurance space
Religare, NTT Europe launch online trading
2010 Religare in pact with Bank of Maharashtra for online trading
Religare takes Northgate stake in investment push Religare Voyages plans to tap air-ambulance segmet
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C. Vision, Mission and Quality Policy
Vision
To be India's first Multinational providing complete financial services
solution across the globe.
MISSION
Providing integrated financial care driven by the relationship of trust and
Confidence .
QUALITY POLICY
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We are committed to being the leader in providing world class product and
services which exceed the expectation of our customers achieved by
teamwork and a process of continuous improvement.
D. Products and Service Profile
RELIGARE PRODUCT DETAILS:-
Equity Gold
Derivatives
Mutual fund
Commodity Trading
SERVICES OF THE COMPANY
Depositary services
Marginal financing
Mutual fund distribution
Portfolio Management Scheme
Stock trading.
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E. Area of Operation Global /National/Regional
GLOBAL
NATIONAL
New Delhi Tamil Nadu
Mumbai Kolkata
Pune Gujarat
Chennai Ahmadabad
Regional
Bangalore Mysore Hubli Mangalore Belgum
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Brazil Dubai Sri lanka Singapore
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F. Ownership Pattern
Central Leadership Team Board of Directors - Religare Enterprises
Limited
Mr. Sunil Godhwani
Chairman and Managing Director,
Religare Enterprises Limited
Mr. Shachindra Nath
Group CEO, Religare EnterprisesLimited
Mr. Anil Saxena
Group CFO, Religare Enterprises
Limited
Mr. Sunil Godhwani
Chairman and Managing Director
Mr Shachindra Nath
Group CEO Mr. Anil Saxena
Group CFO Mr. Harpal Singh
Non Executive Director Mr . Deepak Ramchand Sabnani
Independent Director
Ms . Kathryn Matthews
Independent Director
Mr . Padam Bahl
Independent Director
Mr. J. W. Balani
Independent Director
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http://www.religare.in/OurLeaders.asphttp://www.religare.in/OurLeaders.asphttp://www.religare.in/OurLeaders.asp#sunilhttp://www.religare.in/OurLeaders.asp#shivinderhttp://www.religare.in/OurLeaders.asp#shivinderhttp://www.religare.in/OurLeaders.asp#harpalhttp://www.religare.in/OurLeaders.asp#Deepakhttp://www.religare.in/OurLeaders.asp#Kathrynhttp://www.religare.in/OurLeaders.asp#Padamhttp://www.religare.in/OurLeaders.asp#Balanihttp://www.religare.in/OurLeaders.asphttp://www.religare.in/OurLeaders.asphttp://www.religare.in/OurLeaders.asp#sunilhttp://www.religare.in/OurLeaders.asp#shivinderhttp://www.religare.in/OurLeaders.asp#shivinderhttp://www.religare.in/OurLeaders.asp#harpalhttp://www.religare.in/OurLeaders.asp#Deepakhttp://www.religare.in/OurLeaders.asp#Kathrynhttp://www.religare.in/OurLeaders.asp#Padamhttp://www.religare.in/OurLeaders.asp#Balani -
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G. Competitors Information
ICICI WEB TRADE LTD. (ICICIdirect.com):
ICICIdirect.com was the first entrant e-broking. ICICIdirect.com provides the 3-in-1
to the users which ties in their saving bank account and their Demat account to their
brokerage account electronically. This integration ensures that money is transferred
to/from their bank account and the shares are transferred from/to their Demat account
automatically without writing any cheques or transfer instructions while carrying out
their trades in shares.ICICIdirect.com has the option of trading in share in cash, margin
or spot segment. An investor can also invest in 14 Mutual Funds through their trading
account.
India Info line Ltd:
5paisa is the trade name of India Infoline Securities Private Limited (5paisa),
member of National Stock Exchange and The stock Exchange, Mumbai. 5paisa is a
wholly owned subsidiary of India Infoline Ltd, Indias leading and most popular financeand investment portal. 5paisa has emerged as one of leading player e-broking space in
India.
KOTAK SECURITES LIMITED (kotakstreet.com):
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Kotak Securities Ltd, a strategic joint venture between Kotak Mahindra Bank and
Goldmen Sachs (holding 25%-one of the worlds leading investment banks and
brokerage firms) is Indias leading stock broking house with a market share
Of 5 -6 % Kotak Securities Ltd. Has been largest in IPO distribution It was ranked
number one in 2003-04 as Book Running Lead Manager in public equity offering by
PRIME Database. It has also won the Best Equity Award from Finance Asia April
2004.
India Bulls:
India bulls are Indias leading retail financial services company with 77 locations
spread across 64 cities. Its size and strong balance sheet allows providing varied products
and services at very attractive prices, our over 750 Client Relationship Manager are
dedicated to serving your unique needs. India bulls is lead by highly regarded
management team that has invested crores of rupees into a world class Infrastructure that
provides real-time services & 24/7 access to all information and products. The India bulls
Professional Network
MOTILAL OSWAL SECURITIES LTD. (MOSt):
One of the top-3 stock-broking in India, with a dominant position in both
institutional and retail broking, most is amongst the best-capitalized firms in the broking
industry in terms of net worth. MOSt was founded in 1987 as a small sub-broking unit,
with just two people running the show. Focus on customer- first - attitude, ethical and
transparent business practices, respect for professionalism, research- based value
investing and implementation of cutting-edge technology have enabled it to blossom into
a thousand-member team.
HDFC SECURITIES LTD :
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HDFCsec is a brand brought to you by HDFC Securities Ltd, which has been
promoted by the HDFC Bank & HDFC with the objective of providing the diverse
customer base of the HDFC Group and other investors a capability to transact in the Stock
Exchange & other financial market transaction. The services comprises online buying &
selling of equity shares on the national stock exchange (NSE).Buying & selling of select
corporate debt and government securities on the NSE would be introduced in a subsequent
phase.
UTI SECURITIES LTD: (UTISEL)
UTI Securities Ltd was incorporated on June 24, 1994 by Unit Trust of India as a
100% subsidiary and on the repealing of the UTI Act, the capital is now held by the
Administrator of the Specified Undertaking of Unit Trust of India (ASUUTI). UTI
Securities has been working as an independent professional entity for providing financial
intermediary and advisory services to its corporate and retail clientele.
IDBI Capital Market Services Ltd:
IDBI Capital is a leading Indian securities firm offering a complete suite of products &
services to individual, institutional and corporate clients.IDBI Capital Market Services Ltd.
(IDBI Capital), a wholly owned subsidiary of Industrial Development Bank of India
(IDBI), is a leading Indian securities firm, offering a complete suite of products and
services to individual, institutional and corporate clients.
H. Infrastructural Facilities Offices
The company has offices located at prime location in Mumbai, New Delhi, Kolkatta and
Chennai. The offices are centrally located to cater to the requirements of institutional and
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17 corporate clients and retail clients, and for ease of operation due to proximity to stock
exchange and banks. Today we have more than 170 branches all over India.
Communications
The company has its disposal, an efficient network of advance communication system and
intend
to install CRM facilities, besides this it is implementing interactive client information
dissemination system which enable clients to view there latest client information on web. It
has an installed multiple WAN to interconnect the branches to communicate on real time
basis. The company is equipped with most advanced system to facilitate smooth functioning
of Operations. It has installed its major application on IBM machine and uses latest state of art.
I. Achievement and Award
Religare Wins Award For Brand Excellence In Banking And Financial
Services .
Religare won the award for Brand excellence in the Banking and Financial services
category at The World Brand Congress 2009 held in Mumbai on 4th and 5th Nov 2009.
Religare emerged as a winner amongst other corporate giants nominated for the same
category.
Religare securities equity broking -subsidiary has won an award from D&B for
the "best broking house-with a global presence"
At the recently concluded CEO CLUBS INTERNATIONAL AWARDS, Mr.
Sunil Godhwani was conferred the CEO of the year Award. The award ceremony washeld at The Grand Midwest Tower Hotel, Dubai where Mr. Amarnath (President, GCC
Operations) collected the award on behalf of Mr. Godhwani.
Religare Securities Limited received the LIPPER-STARMINE broker award
for "Earnings Estimates in Midcap Research for 2008" . The Lipper - StarMine Awards
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organized by Thomson Reuters, for Asset Management and sell-side broking Companies in
India. The awards recognize analysts who are more accurate than their peers in forecasting
earnings, awarding credit to those who demonstrate an ability to make accurate estimates
earlier than their peers.
Religare Enterprises Limited wins Excellence Award sponsored by Institute of
Economic Studies at Indian Habitat Centre.
Religare online emerged as Indias most user friendly website . In a consumer
research conducted by leading independent online research and advisory organization
JuxtConsult, the lucid user interface of Religare online emerged as overall winner in the
Online Financial Info category.
J. Work flow model (End to End)
With our unique Business model, we have different services to suit different
people. From Remisers to Trainee, Entrepreneurs to Associates and Agents, we have
services providing everyone with numerous benefits and in keep growing in a profitablecollaboration.
Remisiers:
Partner with Religare, start your own venture and leave it to us to support you with
essential business requisites. We will provide the necessary infrastructure, technical and
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marketing support, operation backing and research, while you can back this whole system
with your clients.
As a remisier, following benefits are provided:
No commercial space required.
No start-up capital needed.
Marketing support is provided.
Technological support to associates.
Access to all financial products.
Agents:
Ideal programmer suited to those who want to work freelancers, for people who
wants to work for themselves and possess that grit and self confidence coupled with
business acumen. Its a perfect platform to realize your dreams.
Benefits:
No commercial space required.
No start-up capital needed.
Marketing support is provided.
Technological support to associates.
Access to all financial products
Trainee:
We at Religare have designed a unique programme to mould the great
entrepreneurs of tomorrow. We provide you with a complete trading in all the financial
aspects, business development, and back office operations, marketing and research,trading,
Associate:
Religare treats their associates as their own providing innumerable benefits and a strong
support.
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Operation Support: Centralized real time monitoring and control system with in
built system driven alerts and controls to support branch and client level exposuresand margin factors.
Back office Support: User friendly back office support system, with real time
updates for clients as well as associates.
IT and Connectivity Support: Access to world class technology.
Product Support: Opportunity to offer wide range of products.
Research Support: In-house research team that caters to all clients for premium
quality research & advisory support.
Detailed Research Reports and Market tips.
Real time access to research analysis and reports via Web portal.
K.FUTURE GROWTH ; 200000PLUS Retail customers being serviced through centralized call centre /web
solution
150branches/semi branches servicing affluent/aggressive traders through highly
skilled financial advisors
Their target is to have 350 branches and 1000business partners in 300 cities of
India
Strong advisory role through fundamental and technical research
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3. MCKENSYS 7S FRAME WORK
1
. STR
A TE
G Y:
In
modern times the word strategy has found its way into the management field. In the
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context of a business concern, strategy indicates specific program of action for achieving
the organization objectives by employing the firms resources efficiently and
economically. It involves preparing oneself for meeting unforeseen factor. It is also
concerned with meeting the challenges posed by the policies and actions of other
competitors in the market.
2.STRUCTURE:
Organization Structure:
National sales marketing Head
Vice President-Investment Vice President Sales
Assistant Vice President-Investment Assistant Vice president-Sales
Zonal Manager Investment Regional Sales-Head
Senior Investment Manager Branch Manager
Manager Investment Team Leader
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Relationship Manager
Associated Relationship Manager
Asst Relationship Manager
Relationship Executive
2. SYSTEM:
RELIGARE covers the entire spectrum of financial services such as Stock broking,
Depository Participants, Distribution of financial products - mutual funds, bonds, fixed
deposit, equities, Insurance Broking, Commodities Broking, Personal Finance Advisory
Services, Merchant Banking & Corporate Finance, placement of equity, IPOs.
3. STYLE:
An activity like forecasting and planning are made by top level managers. Major
policies and plans are made by top management and it is implemented and administered by
employees. In the organization the style of informal communication and meetings with
employees has created workers to a friendly environment .
4. STAFF:
The staff of Mckinsys 7S framework includes the human resource management, rewards
and recognition. The main strength of India Religare is its research teams efficiency and
team work of the employees.Staff of Religare as follows:
Regional manager Branch Manager
Sales Manager
5. SKILLS:
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The managers and workers in each department are skilled to the extent of functions
they perform. Directors of the company are skilled in every activities and disciplines of
organization.
A 1600 team of highly qualified and dedicated professionals drawn from the best of
academic and professional backgrounds are committed to maintaining high levels of client
service delivery. This has propelled RELIGARE to a position among the top distributors
for equity and debt issues with an estimated market share of 15% in terms of applications
mobilized, besides being established as the leading procurer in all public issues.
6. SHARED VALUES:
Shared values refer to a set of values & aspirations that goes beyond the conventional
formal statement of corporate objectives. Culture of an organization is usually determined
by some of the value benefits and working practices that exist within an organization
operational standard.
4. SWOT analysis
A SWOT analysis focuses on the internal and external environments, examining
strengths and weaknesses in the internal environment and opportunities and threats in the
external environment
STRENGTHS
Services
Services like online trading facility, institutional and domestic broking, customized
research reports with almost 80% efficiency etc give Religare an edge over its competitors.
SMS alerts, Softer, intangible features like imagery, equity driving preference.
Relationship managers
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The company has a team of relationship managers who are dedicated to the service
of clients. This RMs takes care of clients even smallest problem and makes efforts to
solve them through their expertise. They also help their clients to invest their wealth in the
market.
Distribution Network
Religare with almost 150 branches beefed up by comprehensive online research,
advice and transaction services. In near future expect to make 200000+ retail customers
being serviced through centralized call centre / web solution.
Marketing
Religare (previously Fortis securities) is a veteran equities solutions company
with loads of experience in the Indian stock markets. Religare does not claim expertise in
too many things.. So when we says that investing in stocks should not be confused with
trading in stocks or a portfolio-based 78 strategy is better than betting on a single horse, it
is something that is spoken with years of focused learning and experience in the stock
markets.
Products
Companys product line is a basket of financial services offered to its clients. Its a
all product single shop for investors. Here we offer Along with Equity, Mutual funds,
personal loans, PMS, Corporate Finance and Investment banking etc to our customers. Our
products are customized according to individual demand and preference
WEAKNESS
Customer Satisfaction
As far as customer satisfaction goes Religare has to tighten its Boots. The company
does not have enough Relationship managers to cater to huge customer base. The account
opening takes 2 working days whereas an India bull takes half the time for this purpose.
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Branding
Though the company has a efficient products but large part of investment interested
population does not know the company. The most basic expectation for a trader or investor
when one begins trading is that one must get timely delivery of shares and proceeds from
sale of shares.
Competition from banks and Niche Players
Most of the banks due to good branding have the faith of the customers of their
banking database. So they enjoy the liberty of huge database and customers find it more
reliable to trade their rather than with a unknown broker.
OPPORTUNITIES
The external environment analysis may reveal certain new opportunities for profit and
growth.
Ever-increasing market
After the NSE brought the screen based trading system stock markets are now more
secured which has attracted lot of retail investors and the demand is increasing day by day.This has resulted in improved liquidity and heavy volumes on transactions. Religare is one
of the early80 entrants here. As to how much it will roar and how swift it can swoop on the
market, the future alone can answer such queries.
Improving Technology
In country like India technology is always improving which gives the company a
chance to keep on improving their product with time whereas for the small players like
local brokers it will be difficult to keep the same pace as the changing technology. Alsowith SEBI lying down some strict guidelines small brokers are finding it harder to retain
the customers with no research department and small capital.
Unfulfilled needs of the customers
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With so many competitors offering their products in the market but no one is able
to completely satisfy the customers. Some have the problem of lack of information or some
were scared of volatility of the stock markets. Religare has the opportunity to tap this
unsatisfied set of Customers and to make hold in the market.
Education Level
The education level in the country is improving year after year as far as technology
goes. With that the understanding of the stock market is also increasing and a lot of retail
investors are steeping in the markets which is being shown by increasing volumes,
transactions and indices
THREATS
New Competitors
A lot of new competitors are trying to enter the market in this bullish run to taste the flavor
of this cherry. This is creating a lot of competition for large players like Religare and it is
creating little confusion in the minds of the customers about the services provided by the
broker. Also many banking firms are entering into the market with huge investment.Competitors like ICICI kotak, hdfc, 5-paisa etc. are posing a lot of threats to the company.
Market Uncertainty, political instability & unfavorable economic conditions
5. ANALYSIS OF FINANCIAL STATEMENT
A. Current ratio:
CR= current assets
Current liabilities
YEAR CURRENT
ASSET
CURRENT
LAIBILITIES
CURRENT
RATIO (%)
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2009 496.81 5.10 97.41
2010 87.85 179.54 0.49
B. Debt equity ratio
DER= Long term debt
Share holders fund
YEAR TOTAL DEBT EQUITY SHARECAPITAL
DEBT-EQUITY RATIO (%)
2009 00 00 00
2010 22.22 2561.06 0.01
C. Operating ratio:
Operating Ratio = Operating profit
Sales
YEAR OPERATING
PROFIT
TOTAL NET SALES OPERATING
RATIO (%)2009 -3.53 12.55 -28
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2010 60.64 101.50 59.70
D. Net profit margin ratio
= Net profit
Sales
YEAR NET PROFIT TOTAL NET
SALES
NET PROFIT
MARGIN RATIO (%)2009 -19.96 12.55 -159.04
2010 55.52 101.50 54.70
6. Learning experience
I took up this work during my advanced level courses .As they say, that most of thelearning happens outside the classroom, so the internship project was such that learning
experience where in we got the opportunity to apply knowledge into real world of
whatever we had learned so far in classrooms. In fact the main objective of this training
was to help students to adapt to different work conditions, be flexible and creative while
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working in the organization. I have tried to fulfill the same in my summer project. I am
sure this will help the students to become better managers for tomorrow.
RELIGARE LTD is a reputed name in India .It is growing enormously as a stock
broking firm .This company offers many products and services to its clients. This company
also helps the investors by advising them as to where to invest their money. It was really a
great opportunity given to me by the institution to work in the organization.
I have learnt a lot as to how RELIGARE LTD carried out its work so efficiently
and also its business. It was really a good experience for me working during this tenure. I
am really glad that I have learnt so much in detail about its business, product and services.
This training program really did confidence a world of good and now I can say that myknowledge has improved, over these few months.
I would like to thank the entire team of RELIGARE LTD who helped me
throughout the training. We can summarize of our learning experience as how to behave in
corporate world.
How to work under pressure.
How to handle team.
How to get worked done from team.
To maximize the market share of the organization and how to interact with the
customer it is known.
PART-B
a. GENERAL INTRODUCTION
STATMENT OF THE PROBLEM
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The presents study titled A study on investors attitude towards equity market is
aimed at knowing the pre investment and post investment behavior of the investors in the
equity market. As the equity market is the volatile segment of the stock market and as the
investors behavior changes from time to time according to market conditions, studying the
behavior of the investors before investing and after investing in equity shares becomes
essential. The investors behavior is influenced by various factors like discussions before
the investments, base for decision, source of information, bullish or bearish market etc.
OBJECTIVES OF THE STUDY
To understand the investors behaviour in investing Equity market
To understand the upward and downward movement and volatility of the stock
price
To understand the behaviour pattern of business class with respect to investment
NEED FOR THE STUDY
As we know that now a days stock market is gaining importance, the turnover of
equity trading is increasing day by day. The study was undertaken on behalf religare Ltd.
This study helps to know the investors behaviour, awareness level about derivatives and
factors considered by the investor while selecting the brokers.
SCOPE OF THE STUDY
The scope indicates the boundaries in which the project was undertaken to a great
extent.The project titled Investors attitude towards equity market was based on the
information given by the investors of data collection or analysis. RELIGARE LTD at
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Bangalore. 50 investors of RELIGARE limited . at RELIGARE were contacted during the
month January-Feb of 2010-11 for the purposes of collecting the information. This study
makes an attempt to understand the behaviour of the investors in the equity market.
METHODOLOGY
The methodology is the plan, structure and strategy of the investigation process that sets
out to obtain answers to the study. The methodology adopted for collecting information is
Type of data
Primary data:
This data was collected with help of the questionnaire to know the various factors
influencing the investments, investment preferences of the investors, the profile of the
investors based on their education background, occupation, income levels and savings and
such other factor are used.
Secondary data:
This secondary data was collected from websites and various journals to know the variousinvestment avenues and their strengths and their weakness.
DATA COLLECTION:
A sample size of 50 investors was selected randomly from, Religare Ltd Bangalore.
The respondents were interviewed by giving structured questionnaire and proper
guidance was given to fill it. The primary data was collected for the purpose of analysis
and interpretation. The Analysis has done on the basis of data collected and the results
are showed in Graphs and Tables
SAMPLING UNIT:
The investors of religare Ltd Bangalore were the respondents, which included
Businessmen, Retired employees, Students, Agriculturists etc.
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SAMPLING SIZE:
50 Respondents.
SAMPLING PROCEDURE:
Convenience sampling.
LIMITATIONS OF THE STUDY
The present kind is bound to have certain limitations.
The present study was an empirical work presented in deceptive manner.
The objective of the study may well be this kind of analysis, attempt has been made
to provide comprehensive conceptual analysis.
The study was undertaken to collect all the possible information, which is very
essential for the study. Despite the sincere efforts to collect accurate information.
Time constraint, respondents hesitation and their busy schedule.
The time span for survey was short and hence only major aspects are considered in
this research study.
B. ANALYSIS AND INTERPRETATION:
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Data are facts, figures and relevant materials, past and present, serving as bases for study
of an analysis. Without an analysis with actual data no specific inferences can be drawn
from the questions under study. Inferences based on the imagination or guesswork cannot
provide correct answers to research study. The relevant, adequate and reliable data
determines the quality of finding of the study.
The data was collected from investors Religare portfolio Ltd Bangalore. Respondents
were contacted at their work place, home and at Religare portfolio Ltd. Office All the
respondents were given guidance to fill the questionnaire. The study is titled as A study
on Investors attitude towards equity market.
After collecting the primary data, it was analyzed to find out the result of the study.
The data collected from the questionnaire were coded and decoded to analyze the data. The
data are analyzed and the results were disclosed in the form of percentages, tables and
graphs.
Organized money market :
Indian financial system consists of money market and capital market. The moneymarket has two components the organized and unorganized. The organized market is
dominated by commercial banks. The other major participants are the Reserve Bank of
India, if Insurance sCorporation, General Insurance Corporation, and Unit Trust of
India, Securities Trading Corporation of India Ltd, Discount and Finance House of
India, other primary dealers, commercial banks and mutual funds, the core of the
money market is the inter bank call money market where by short-term money
borrowing/lending is effected to manage temporary liquidity mismatches. The Reserve
Bank of India occupies a strategic position of managing market liquidity through open
market operations of government securities, access to its accommodation, cost (interst
rates), availability of credit and other monetary management tools. Normally, monetary
assets of short term nature, generally less than one year, are dealt in this market.
Un-Organized money market:
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Despite rapid expansion of the organized money market through a large network of
banking institutions that have extended their reach even to the rural areas, there is still
an active unorganized market. It consists of indigenous bankers and money lenders in
the unorganized market; there is no clear demarcation between short-term and long-
term finance and even between the purposes of finance. The unorganized sector
continues to provide finance for trade as well as personal consumption. The inability of
the poor to meet the creditworthiness requirements of the banking sectors make them
take recourse to the institution that still remain outside the regulatory frame work of
banking. But this market shrinking.
The secondary market consists of twenty stock exchanges. The secondary market
provides a trading place for the securities already issued, to be bought and sold. It also
provides liquidity to the initial buyers in the primary market to re-offer the securities to
any interested buyers at any price, if mutually accepted. The financial market in India
was highly segmented until the initiation of reforms in 1992-93 on account of a variety
of regulation and administered prices including barriers to entry. There from process
was initiated with the establishment of Securities and Exchange Board of India (SEBI).
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1. Respondents Age Profile:
The researcher is interested in age profile because the aged people are more conservative
and they are taken low risk but younger the age normally people are more aggressive and
the take more risk.
Table 6.1: Age Profile of the Respondent
Age No of Responses Percent (%)Below 20 years 1 2
21 to 30 years 11 22
31 to 40 years 18 36
41 years and above 20 40
Total 50 100
Graph no: 1
2
22
3640
05
1015202530354045
Below20 years 21 to 30 years 31 to 40 years 41 years andabove
% o f R e s p o n d e n t s
Age
INFERANCE :
As per table no.6.1 and graph 5.1 it is found that 40% of the respondents were in age group
of 41 year and above and 36% were 31 to 40 years, remaining respondents were in age
group of 21 to 30 years and below 30 years having 22% and 2% respectively
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2. Respondents Gender Profile:
The researcher is interested in gender profile because it helps in knowing whether
investment in equity depends on the gender or not
Table 6.2 Gender Profile of the Respondents
Gender No of Responses Percent (%)Male 45 90
Female 5 10
Total 50 100
Graph no: 2
90%
10%
INFERENCE:
As per table 6.2 and Graph no.2 it is found that most of the respondents in the research
were male respondent i.e. 90% and remaining 10% were female respondents.
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3. Respondent Education Qualification Profile:
The researcher is interested in respondents qualification because generally the percentage
of educated people is more who invest in the Equity Shares.
Table 6.3: Respondent Education Qualifications
Qualification No of Responses PercentUnder Graduate 6 12Graduate 34 68
Post Graduate 9 18Others 1 2Total 50 100
Graph no: 3
INFERENCE:
As per table no. 6.3 and Graph no.3 it is found that the most of the respondents were
graduates i.e. 68% and 18% were post graduate and remaining was under graduates.
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4. Respondents Occupation:
The researcher is interested in occupation because occupation plays a very important role
in investment because the income level and savings depends on the occupation of
respondents.
Table 6.4: Respondents Occupation Profile
Occupation No of Responses PercentStudent 3 6
Salaried 13 26
Business 18 36
Agriculturist 4 8Professional 5 10
Retired 7 14Total 50 100
Graph no: 4
INFERENCE:
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As per table no.6.4 and Graph no4 it is found that most of the respondents were having
business as occupation i.e. 36% and 26% of the respondents were salaried, the next most
respondent were retired peoples.
5. Respondents Monthly Income:
Income is one Factor, which has bearing over the expenses, saving and purchasing
power so the researcher is very interested in knowing respondents monthly income.
Table 6.5: Respondent Monthly Income
Monthly Income No of Responses PercentBelow 100000 11 22
100000 to 300000 24 48300000 to 500000 8 16
500000 to 800000 4 8
800000 & Above 3 6
Total 50 100
Graph no: 5
INFERENCE:
As per table no.6.5 and Graph no 5 it is found that most of the respondents were having
monthly income of 100000 to 300000 i.e. 48% and 22% of the respondents were belongs
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to below 100000 to income category and remaining 16%, 8% and 6% were belongs to the
income category of Rs 300000 to 500000, Rs500000 to 800000 and above Rs 800000
respectively.
Section -B
1 Knowledge Level:
Knowledge is the one thing which gives immense confidence to any act. The knowledge
about shares is very essential and it plays a very important role, impulsive buying of shares
are some times referred as gambling and its not an investment.
Table 6.6: Knowledge Level of the RespondentKnowledge Level No of Responses Percent
Very Good 9 18Good 18 36
Average 23 46Poor 0 0
Very Poor 0 0Total 50 100
Graph no:6
INFERANCE:
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As per table no. 6.6 and Graph no 6 it is found that most of the respondents having
average knowledge about the stock i.e. 46% and 36% were having good Knowledge and
18% were having very good Knowledge about the stock share.
2. Percentage of Amount Invested in Different Avenues:
Table 6.7: Percentage of Amount Invested in Different Avenues
Invested Avenues No.of Responses PercentageMutual Funds 25 30
Debenture 5 10
Postal Schemes 12 24
Real Estate 1 2
Fixed Deposits 8 16Insurance Products 4 8
Gold 3 6
Mixed Above 1 2
Others 1 2
Total 50 100
Graph no: 7
INFERENCE:
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As per table no.6.7 and Graph no 7 it is found that 30% of the respondents were
invested their wealth in mutual funds, 24% of the respondents were invested their wealth in
postal schemes and 16% of the respondents were invested their wealth in fixed deposits.
And 10% of debenture, 8% of insurance product, and 6% of gold and remaining 2% of
investors are real estate, mixed of above, other respectively
3. Respondents Make Discussion While Making Investment:
Table6.8: With Whom the Respondents Make Discussion While Making
Investment.
Discussion With No. of Responses PercentageFriends 10 20
Brokers/Sub brokers 18 36 No Discussion 0 0
Colleagues 7 14Family Members 6 12
On my Own 9 18Total 50 100
Graph no: 8
INFERENCE:
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As per table no.6.8 and Graph no 8 it is found that 20% of the respondents done
discussion with their friends, 36% with brokers, 18% with their own analysis and 12%
done some discussion with their family members and 14% made discussion with
colleagues while investing in equity.
4. Respondents investment in stock market
Table 6.9: Reason for Investment in Equity
Particulars No of Responses Percent (%)Less than 100000 22 44100000 to 500000 14 28500000 to 1000000 10 201000000 & above 4 8Total 50 100
Graph no: 9
INFERENCE:
As per table no.6.9and graph no 9 it is found that 44 % of the respondents have invested
in between below Rs 100000 and 28% and 20% investors have invested under the category
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of 100000 to 500000 and 500000 to 1000000. And remaining 8% of the investors have
made their investment above 1000000.
5. Respondents use information available for taking investment decision.
Table 6.10: Reason for Investment in Equity
Particulars No of
Responses
Percent (%)
Television 15 30
Internet 18 36
Newspaper/magazines 9 18
Research reports 4 8
Company published information 4 8
Total 50 100Graph no: 10
INFERENCE:
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As per table no.6.10 and graph no 10 it is found that 30% and 36% of the respondents
have used television and internet for taking decision making and 18 and 8 % of the
respondents have used newspapers, research reports and published information
respectively
6.Respondents investment decision
Table 6.11: Reason for Investment in Equity
Particulars No of Percent
Only fundamental analysis 12 24
Only technical analysis 15 30
Both fundamental and technical analysis 18 36
Neither fundamental nor technical analysis 5 10
Total 50 100
Graph no: 11
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INFERENCE:
As per table no.6.11 and graph no 11 it is found that 24 % and 30% of the respondents
have used fundamental and technical analysis and 36% have used both the analysis and
remaining 10% used neither of the analysis.
7. Reason for Investment in Equity:
Table 6.12: Reason for Investment in Equity
Particulars No of Responses PercentSafety of Invested Capital 13 26
Capital Appreciation 17 34Liquidity 15 30
Regular Return 5 10
Total 50 100Graph no: 12
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INFERANCE:
As per table no. 6.12 and graph no 12, it is found that 26% feels that factor is to be
considered was safety of invested capital, and 34% respondents feels it is capital
appreciation and 30% are feels liquidity and 10% of regular return is very important factor
to be considered at the of investment in equity.
8. Time Horizon: Time is the precious thing. Time of the investment depends on the
objective of the investment. If the objective is for further usage obviously the time horizon
of the investment would be little large.
Table 6.13: Time Horizon of Investment
Time Horizon No of Responses PercentLess than 6 month 10 20
6 months to 1 year 23 46
1 to 3 years 11 22
3 to 5 years 4 8
Above 5 years 2 4
Total 50 100Graph no:13
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INFERENCE:
As per table no. 6.13 and Graph no 13 it is found that 20% of less than 6 month, 46%
of the respondents time horizon is 6 months to 1 year and 22% respondents time horizon is
1 to 3 years and only 4% of the respondents were having time horizon of above 5 years.
9. Equity Shares are Fair and Appropriate Way of Mobilizing Funds by
companies:
Table 6.14: Opinion Regarding the statement Equity Shares are Fair and
Appropriate Way of Mobilizing Funds by Companies
Options No of Responses Percent
Low Risk 18 36Liquidity 8 16
Good Return 16 32
Assured Return 6 12
High Return & High Risk 2 4
Total 50 100Graph no: 14
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INFERANCE:
As per table no. 6.14 and Graph 14 it is found that most of the respondents i.e.
36% of low risk, 16% of liquidity, 32% of good return, 12% of assured return and
only 4% of high risk and return Respectively.
10. Frequency of Trading: Frequency of Trading depends on the investors
occupation, perception about the market, market movements, and time horizon of the
investment.
Table 6.15: Frequency Investors Trade in Equity Shares.
Frequency No of Responses PercentDaily 16 32
Weekly 22 44Monthly 8 16Once in 6 months 4 8
Once in a year 0 0
Total 50 100Graph no: 15
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INFERENCE:
As per table no. 6.15and Graph no 15 it is found that most of the respondents trade
weekly and daily i.e. 44% and 32% respectively and only 16% of the respondents makes
day trading.
11. Price Movements:
Price movement is the very critical factor in stock market, what investor that may
not happens because price is purely depends on the demand and supply of the securities.
Sometimes price may go up and suddenly it may fall.
Table 6.16: Investors Behaviour if Price Falls by More Than 20 %
Particulars No of Responses PercentSell the security out of fear 16 32Buy some more security as it has become cheap 19 38
Convert it into long term investments 15 30
Total 50 100
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Graph no: 16
INFERENCE:
As per table no. 6.16 and Graph no 16 it is found that 38% of the respondents were buy
some more security as it has become cheap and 32% of the respondents were sell the
security out of fear and 30% of the respondents take the position of converting it into long
term investments.
12. Investors Lost Their Money in Bearish Market
Table 6.17: Investors Lost Their Money in Bearish Market.
Particulars No of Responses PercentYes 21 42 No 29 58
Total 50 100
Graph no:17
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INFERENCE:
As per table no. 6.17 and Graph no 17 it is found that 58% of the respondents were
not lost money because of the bearish market and 42% of the respondents were lost money
because of their false expectation.
13. Respondents buy the shares at the peak of Bull Run and lost money:
Table 6.18: Buying the shares at peak of Bull Run and lost money
Particulars No of Responses PercentYes 26 52 No 24 48
Total 50 100
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Graph no: 18
INFERANCE:
As per table no. 6.18 and Graph no18 it is found that 52% of the respondents
were aware about futures and options contracts and only 48% were not aware about
Future & Option contracts.
14. Respondent the number of securities in investors portfolio:
Table 6.19: The number of securities in investors portfolio
Particulars No of Responses Percent (%)Less than 5 17 34
5 to 10 14 28
10 to 20 10 20
Above 20 9 18
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Total 50 100
Graph no: 19
INFERANCE:
As per table no. 6.19 and Graph no19 it is found that 34% of the investors securities
less than 5% and 28%, 20% and 8% of investors belonging 5 to 10, 10-20 and above 20.
15. Respondent managing portfolioTable 6.20:Managing in port folio
Particulars No of Responses Percent (%)Self 8 16
Self with Advice from professionals 16 32
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Though brokers portfolio management services 26 52
Total 50 100
Graph no: 20
INFERANCE:
As per table no. 6.20 and Graph no 20 it is found that around 16% of the investor
manage their own portfolio and remaining 32% of investors take the advice from
professionals and 52% of the investors go to brokers.
16. Respondent in future performance of stock market
Table 6.21:Future performance of stock market
Particulars No of Responses Percent (%)
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Very good 19 38
Good 7 14
Average 5 10Poor 7 14
Very poor 12 24
Total 50 100
Graph no: 21
INFERANCE:
As per table no. 6.21 and Graph no 21 it is found that 38% of the respondents known
very good about future performance of the stock and 14%, 10% of respondents average in
knowing about future stock performance and remaining 14% of the respondents poor and
another 14% are very poor.
17. Respondent Expected return from Equity market in 5 years
Table 6.22:Return in Equity market in 5 years
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Particulars No of Responses Percent (%)Less than 8% P.A 22 44
8% to 15% P.A 14 2815% to 25% P.A 9 18
25% and above 5 10
Total 50 100
GRAPH NO: 22
INFERANCE:
As per table no. 6.22 and Graph no 22 it is found that 44% is the expected return from 5
years is less than 8% P.A and 28% and 18% would get the return of 8% to 15% and 10%
would get the return of above 25%.
18. Respondent while selecting the Brokers/Sub brokers
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Table 6.23:While selecting the broker /Sub brokers
Particulars No of Responses Percent (%)Brokerage charge 11 22
Quality of service 23 46
Demat account faculty 7 14
Availability of Research 6 12
Courteous staff reports 3 6
Total 50 100
Graph no: 23
INFERANCE:
As per table no. 6.23 and Graph no 23 it is found that 22% of the respondents were
consider brokerage charge and 46% of investor consider quality of service and 14% and !
2% of investors consider demat account faculty and availability of research and remaining
6% go with courteous staff reports.
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19. Respondent about industries would investor like to investment
Table 6.24:Industry would like to investment
Particulars No of Responses Percent (%)Pharmaceuticals 31 62
IT Industries 10 20
Construction 5 10
Textiles 3 6
If any other please specify 1 2
Total 50 100
Graph no: 24
INFERENCE:
As per table no. 6.24and Graph no 24 it is found that 62% of the respondents trade in
Pharmaceutical 20% and 10% of investor trade in IT and construction and remaining 6%
and 2% of investors trade in textiles and others.
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7. FINDINGS AND RECOMMENDATION
FINDINGS:
Majority of investors in stock market are looking for long term investment
Majority of young generation who are employed is entering into this market but
they are not aware about Equity market
56% of the respondents decision was based both on Fundamental and technical
analysis. Most of the Investors of RELIGARE LTD were well informed about the
economy, industry, and company and also about the past variations in share prices.
88% of the respondents did not take decision based on beliefs like horoscope,
Astrologers advice and good days time as per belief. Therefore it is understood
that most of the investors of RELIGARE LTD were not dependent on the beliefs
for taking investment decisions.
The level of knowledge of all the investors was good and average. This shows that
all the investors in RELIGARE PORTFOLIO had sufficient knowledge about the
shares.
12% of the investors were under graduates and rest were graduates and
postgraduates hence majority of the investors of RELIGARE PORTFOLIO werewell educated.
52% of the respondents was aware about derivative contracts and a majority of
36% of the users does speculation by using derivatives.
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48% of the respondents had monthly income in the range of Rs100000 to
Rs300000
64% of the respondents felt that equity shares are fair and appropriate way of
mobilizing funds by companies. 90% of the respondents are of the opinion that
equity shares should not be banned for individual investors.
32% revealed their opinion as to they sell the securities as a cause of fear, 38%
preferred to buy it as it was cheaper, 30% said it was time to better sit quiet, so
findings can be taken as to when ever there is 20% fall in price of share, around
62% are to react for a major change in decision and rest 38% were to sit quiet.
34% of the respondents earned a return of 8% to 15% and 25% of the respondents
earned more than 25% return so it is clear that investors of the RELIGARE
PORTFOLIO have been getting reasonable return from equity investment.
58% respondents felt that performance of future stock market will be good so it
shows that majority of investors of RELIGARE PORTFOLIO were bullish about
the stock market.
About 26% of the respondents felt that the quality of service provided by the stock
broker is the most important factor and 25% of the respondents felt that brokerage
charge is the most important factor in selecting a broker.
There was no respondent who did not collect information prior investing in Equity
market. All the investors had collected information through various source like
friends, brokers/sub brokers, newspapers and magazines etc. as a source of
information to make investment.
66% of the respondents managed their portfolio by their own analysis whereas
28% consulted the professionals before taking decisions.
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RECOMMENDATION
According to the study majority of investors in stockmarket are looking for
long term investment but it is recommended to all investors to invest also in
short term investment since it results in higher returns
According to the study thorough knowledge about stock market is necessaryfor all the investors in order to reduce the risk which is associated with their
investment
48% of the respondents were not aware about the derivatives. 52% of the
respondents were aware of it. Therefore RELIGARE PORTFOLIO can
arrange some awareness program on derivate so that proper purpose of future
and options contracts can be achieved.
As this study shows that the investors should also know the current situation
of stock market and he should analyse the various factors affecting to stock
market before they invest.
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CONCULSION:
The level of knowledge of all investors in RELIGARE PORTFOLIO is good and above
the average level. The major factors that influence the investors to investment in equity are
capital appreciation and liquidity. The above analysis shown that 26% of investors select
the brokers on the basis of quality of service and brokerage charge.The average trading cycle of the investors is one week. It is found that 58% of
investors did not lost money in bearish market and from analysis we can also see that 54%
of investors did not lost money even in Bull Run market
.The data analysis shows that 52% of investors are aware about derivatives market
(Futures and options), out of 26 respondents only 18 (i.e. 70%) of investors feel derivatives
is a good tools for speculation.
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ANNEXURE
BALANCE SHEET
Mar ' 10 Mar ' 09
SOURCES OF FUNDS
Owner's Fund
Equity Share Capital 127.81 76.29
Share Application Money 0.18 1,800.16
Preference Share Capital 25.00 25.00
Reserves & Surplus 2,408.07 617.19
Loan Funds
Secured Loans 0.00 0.00
Unsecured Loans 22.22 0.00
Total 2,583.28 2,518.64
USES OF FUNDS
Fixed Assets
Gross Block 25.67 3.73
Less : Revaluation Reserve 0.00 0.00
Less : Accumulated Depreciation 4.54 0.36
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Net Block 21.12 3.37
Capital Work-in-progress 0.00 0.01
Investments 2,653.85 2,023.55
Net Current Assets
Current Assets, Loans & Advances 87.85 496.81
Less : Current Liabilities & Provisions 179.54 5.10
Total Net Current Assets -91.69 491.71
Miscellaneous expenses not written 0.00 0.00
Total 2,583.28 2,518.64
PROFIT AND LOSS A/C
Mar ' 10 Mar ' 09
Income :
Operating Income 101.59 12.55
Expenses
Material Consumed 0.00 0.00
Manufacturing Expenses 0.00 0.00
Personnel Expenses 25.62 9.88
Selling Expenses 7.31 0.90
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Adminstrative Expenses 47.72 12.44
Expenses Capitalised -39.70 -7.14
Cost Of Sales 40.95 16.08
Operating Profit 60.64 -3.53
Other Recurring Income 33.48 14.89
Adjusted PBDIT 94.12 11.37
Financial Expenses 21.96 21.04
Depreciation 4.27 0.31
Other Write offs 0.00 0.00
Adjusted PBT 67.89 -9.99
Tax Charges 12.80 5.93
Adjusted PAT 55.09 -15.91
Non Recurring Items 0.43 0.00
Other Non Cash adjustments 0.00 -0.05
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Reported Net Profit 55.52 -15.96
Earnigs Before Appropriation 49.01 -6.51
Equity Dividend 25.56 0.00
Preference Dividend 4.84 0.00
Dividend Tax 0.00 0.00
Retained Earnings 18.61 -6.51
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BIBILOGRAPTHY:
REFERENCES Stock exchange websites such as nseindia.com, bseindia.com, nasdaq.com
etc.
Standard reference textbooks ex: dalal street, 2004,2007,2006,2005 edition
I.M.Pandey (2005) Financial Management ninth edition, vikas publishing
house pvt.ltd
Punithavathi Pandian security analysis and portfolio management.
Prasanna Chandra (2005), Financial Management Theory and Practice sixth
edition, New Delhi, Tata Mcraw Hill.
Grinblatmark and matti keloharju (2001) what makes investor trade journal of
finance vol.56.
ICFAI journals of investor behavior.
Securities Industry Association. Annual SIA Investor Survey: Investors
Attitudes toward the Securities Industry. Harris Interactive (11/2003), Wirthlin
Worldwide(11/2004)
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QUESTIONNAIRE
Dear respondents,
I am, YASHAVANTHA.H.M . Pursuing MBA IV semester at JSSATE.
Bangalore, currently undergoing training and has taken a study entitled A STUDY ON
INVESTORS BEHAVIOUR IN EQUITY MARKET.I kindly request you to spare your to spare your valuable time to go through and
fill in questionnaire. The information given by you will be used only for academic purpose
and data would be confidential.
Thanking you,
Yashavantha.H.M.
IV Semester
Section A-Personal Information
1. Name: ..
2. Age:
a. Below 20 years [ ] b. 21 to 31 years [ ]
c. 31 to 40 years [ ] d. 41 years and above [ ]
3. Sex:
a. Male [ ] b. Female [ ]
4. Qualification:
a. Under Graduate [ ] b. graduate [ ]
c. Post Graduate [ ] d. Others [ ]
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5. Occupation:
a. Student [ ] b. Salaried [ ]
c. Self Employer [ ] d. Agriculturist [ ]
e. Professional [ ] f. House wife [ ]
If any other, please
Specify..
6. Monthly Incomea. 100000to300000 [ ] b.300000 to 500000 [ ]
c. 500000 to800000 [ ] d.800000 and more [ ]
Section B
1. How do you rate your knowledge about Stocks and shares?
a. Very good [ ] b. Good [ ]
c. average [ ] d. poor [ ]
e. Very poor [ ]
2. Which of the following investment avenues you have invested other than
stock?
a. Mutual Funds [ ] b. Fixed Deposits [ ]
c. Debentures [ ] d. Insurance product [ ]
e. Postal Schemes [ ] f. Gold [ ]
g. Real Estate [ ] h. Mixed of Above [ ]i. If others please
Specify: ..
3. With whom you generally discuss before taking investment decision?
a. Friends [ ] b. colleagues [ ]
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c. Brokers/Sub brokers [ ] d. Family members [ ]
e. No Discussion [ ] f. On my own [ ]
4. The amount of investment in stock market?
a. Less than 1lakh [ ] b.1lakhto5lakhs [ ]
c.5lakhsto10lakhs [ ] d.10lakhsand above [ ]
5. Do you use the information available from the following source for taking Investment
Decision?
a. Television [ ] b. Internet [ ]c. Newspaper/Magazines [ ] d. Research reports [ ]
e. company published Information [ ]
6. How do you base your Investment Decision?
a. Only Fundamental Analysis [ ]
b. Only Technical Analysis [ ]
c. Both Fundamental and Technical [ ]
d. Neither Fundamental nor Technical Analysis [ ]
7. The factors that you would consider at the time Investment in Equity
a. Safety of invested Capital [ ] b .capital appreciation [ ]
c. Liquidity/Marketability [ ] d. Regular return [ ]
8. What is your time horizon in Equity Investment?
a. Less than 6 months [ ] b. 6 month 1 year [ ]c. 1 to 3 years [ ] c. 3 to 5 years [ ]
e. Above 5 years [ ]
9. Why do you prefer above option?
a. Low Risk [ ] b. Liquidity [ ]
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c. Good Returns [ ] d. Assured returns [ ]
e. High risk and High returns [ ]
10. How frequently you trade in Equity Shares generally?
a. Daily [ ] b. Weekly [ ]
c. Monthly [ ] d. Once in 6 months [ ]
e. Once in a year [ ]
11. Soon after you buy a share if the price falls by more than 20% what
would you do generally?a. Sell the security out of Fear [ ]
b. Buy some more security as it has become cheap(square off) [ ]
c. convert into long term investment [ ]
12. Did you ever sold many shares out of fear when the market turned very
Bearish for a long time and lost money?
a. Yes [ ] b. No [ ]
13. Did you ever purchase many shares at the peak of Bull Run and lost
money when the market crashed?
a. Yes [ ] b. No [ ]
14. Generally what would be the number of securities in your portfolio?
a. Less than 5 [ ] b. 5 to 10 [ ]
C.10 to 20 [ ] d. above 20 companies [ ]
15. Who is managing you Portfolio?
a. Self [ ]
b. Self with Advice from professionals [ ]
c. Through brokers Portfolio Management Services (PMS) [ ]
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16. What is your view about future performance of stock market?
a. Very Good [ ] b. Good [ ]
b. Average [ ] d. Poor [ ]
e. Very poor [ ]
17. What is your Expected return from Equity investment over 5 years
From now?
a. Less than 8% p.a [ ] b. 8% to 15% p.a [ ]
c. 15% to 25% p.a [ ] d. above 25% p.a [ ]
18. What factors do you consider while selecting the Brokers/ Sub- Brokers?
a. Brokerage charge [ ] b. Quality of service [ ]
c. Brokers Brand [ ] d. none of above [ ]
e. If any other specify.
19. Which industries would u like to investment?
a. Pharmaceuticals [ ] b. IT industries [ ]
c. Construction [ ] d. Textiles [ ]
e. If any other please specify..