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Presented by:- SALMAN AHMED

Stock market an empirical study

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Page 1: Stock market an empirical study

Presented by:- SALMAN AHMED

Page 2: Stock market an empirical study

INTRODUCTION :-Indian Stock Markets are one of the oldest

in Asia. Its history dates back to nearly 200 years ago, from east India co. to current govt. it has faced many up and down.

After American Civil War, brokers formally established in Bombay, the "Native Share and Stock Brokers' Association" (which is alternatively known as "The Stock Exchange ") in a place called “DALAL STREET”.

Page 3: Stock market an empirical study

It has grown its root from east part of India to west and north to south India.

Bombay, Calcutta, Madras, Ahmedabad, Delhi, Hyderabad and Indore stock exchange are the well established in all.

Page 4: Stock market an empirical study

The National Stock Exchange of India (NSE) was incorporated in November 1992 as a tax-paying company. It is recognized under Securities Contracts (Regulation) Act, 1956 in 1993 as a stock exchange. In June 1994, it commenced operations in the Wholesale Debt Market (WDM). In November, the same year, the Capital Market (Equities) segment commenced operations and the Derivatives segment in June 2000.

Page 5: Stock market an empirical study

A very common name for all traders in the stock market, BSE, stands for Bombay Stock Exchange the oldest market not only in the country, but also in Asia. It was established in the year 1875 and became the first stock exchange in the country to be recognized by the government. In 1956, BSE obtained a permanent recognition from the Government of India under the Securities Contracts (Regulation) Act, 1956.In the past and even now, it plays a pivotal role in the development of the country's capital market. This is recognized worldwide and its index, SENSEX, is also tracked worldwide.

Page 6: Stock market an empirical study

Primary market

•In this market companies issue fresh security in exchange of funds through public issues or private placements.

•It is under Companies Act, 1956 which deals with issues, listing and allotment of securities.

•Company can issue shares at face value, at premium or at discount.

These days the common process in issuing the securities are as follows:

The investors part with money only after allotment.

It eliminates refunds except in case of direct applications.

It reduces the time taken for issue process.

Page 7: Stock market an empirical study

Secondary market is the place for sale and purchase of existing securities. It enables an investor to adjust his holdings of securities in response to changes in his assessment about risk and return. It enables him to sell securities for cash to meet his liquidity needs. It essentially comprises of the stock exchanges which provide platform for trading of securities and a host of intermediaries who assist in trading of securities and clearing and settlement of trades. The securities are traded, cleared and settled as per prescribed regulatory framework under the supervision of the exchanges and oversight of SEBI.

Page 8: Stock market an empirical study

Share khan is one of the retail brokerage firms in the country, arm of the Mumbai based SSKI group.

Share khan offers its customer a wide range of equity related services including trade execution on BSE, NSE, Derivatives, Depository services, online trading, investment advice etc.

Main component of company profile is based on these things:

1. Share khan proposal

2. Innovation

3. Network

4. Stakeholder

5. Experience

6. Awards Products offered by Share khan

Page 9: Stock market an empirical study
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• Online Services to Suit your Needs.

• Get everything you need at a Share khan outlet.

• Investing in Mutual Funds through Share khan.

• Convenient, Secure and Automated Demat services

Share khan offers 3 main account

1. Classic account

2. Speed trade

3. Dial n trade

Page 11: Stock market an empirical study

•Trading in securities may become uncontrolled in case of dematerialized securities.

•It is incumbent upon capital market regulator to keep watch over trading in securities.

•Multiple regulatory frameworks have to be confirmed by various depositories laws and acts. These may cause anxiety to the investor desirous of simplicity in terms of transactions in dematerialized securities.

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The major brokerage firms:

Religare.in5paisa.comKotakStreet.comIndiaBulls.comICICIDirect.comHDFCsec.com

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Strength Weakness

1. Low brokerage.2. Free Depository A/C.3. On line Trading.4. Highly Experience.5. Instant Cash transformation6. Brand image.7. Better research team. etc.

1. If a company share is listed in both the exchange then customer can do buying or selling through NSE.

Opportunity Threats

1. They can expand his business in many areas where potential customer is waited.

2. Due to experienced Research report team they can enhance his business and change the mind set of customer due to risk in share market.

1. Government policy, SEBI & Depository policy may be changes.

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•While interacting with the investors I found that most of the customers are unaware about the Mutual fund. Some of the people look upon mutual funds and equity trading as gambling. Thus a mutual fund awareness program can help to increase the penetration of mutual funds in the market.

•The Stock Market has been very buoyant until now especially in the past 3 years. This particular trend is very favorable because a soaring SENSEX means higher returns, which encourages the investors to invest their money in the market.

•In case of insurance, it requires push selling because people always associate it with emergencies and unpleasant situations like death and they don’t want to think about such situation let alone prepare for them, which means it requires a lot of conviction on part of the executives

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IDEAL RATE OF RETURN AGAINST ANY INVESTMENT

25%

48%

15%

12%

UPTO 8%

8%-15%

15%-18%

MORE THAN 18%

Where would u like to invest your money?

What according to you is the ideal rate of return in any investment?

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FACTOR THAT AFFECTED INVESTMENT DECISION

55%

10% 13%

22%

0%

10%

20%

30%

40%

50%

60%

rate of return security liquidity tax benefit

Series1 Series2

rate of various investment alternative

23%

17%

38%

22%

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

mutualfunds

equity banks others

Series1

Series2

Please rate the alternative in investments?

Factor which affect the investment decision the most ?

Page 17: Stock market an empirical study

In the survey of prospective investor’s preferences and their attitude towards share market. I found that only 17% people invest in equity and rest of percentage people used other investment alternative.23% people invest mutual funds, 38% people invest in banks and 22% of people invest in other like gold, bond, post office NSC etc. Other Findings48% of people want 8%-15% rate of return against their investment.55% of people consider rate of return factor while investing their money.40% of people invest up to 50000.

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I suggest following measures: -•Aware people about the mutual funds and equity market that is stock market.•These days the stock market becomes an unpredictable market, investor should keep a vigil eye before investing in equities and mutual funds.

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Books:•Agarwal, J.D. "Security Analysis & Portfolio Management: A Review, Finance India, Vol. II No. 1, March 1989.•Bhatt, V. V. "An Appraisal Of Some Recent Estimates Of Savings and Investments", ICRNI, Vol. 5, 1963.

Internet:•www.mutualfundsindia.com•www.easymf.com•www.amfiindia.com•www.moneycontrol.com