A REPORT ON MARKET RESEARCH ON INVESTOR BEHAVIOUR IN STOCK MARKET FOR NARNOLIA SECURITIES LTD.

NARONLIA SECURITIES LTD.

(MARKETING DEPARTMENT)

(AN AUTONOMOUS CONSTITUENT UNIT OF RANCHI UNIVERSITY, RANCHI) PROJECT REPORT SUBMITTED IN PARTIAL FULFILLMENT OF REQUIREMENT FOR THE AWARD OF MASTER OF BUSINESS ADMINISTRATION (MBA) DEGREE

SUBMITTED BY

SHADAB ANJUM MBA (MARKETING) 10MCRMC93067

Under the guidance of

Project Guide - Mr Vikash Kumar (Cluster Head, Narnolia Securities Ltd.)

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ACKNOWLEDGEMENT

I deem it a proud privilege to extend my greatest sense of gratitude to my Project Guide Mr. Vikash Kumar, Cluster Head, NSL, for the keen interest, inspiring guidance, continuous encouragement, valuable suggestions and constructive criticism throughout the pursuance of this summer internship. I would like to thank all the concerned executives and staff members of HDFC bank who acted as a constant support for me and also helped by providing valuable insights I am highly indebted to Ms. Richa Mishra, Senior HR Manager for her valuable support in helping me to gain this opportunity of being associated with an organization of such esteem. This project is a result of many dedicated efforts and this project report would be incomplete without giving due credit to them. Last but not the least, it would be unfair if I dont express my indebtness to my parents and all my friends for their active cooperation which was of great help during the course of my training project.

SHADAB ANJUM MBA (MARKETING)

MARWARI COLLEGE RANCHI

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CONTENT
S. No TOPIC NAME Page No.

1.

EXECUTIVE SUMMARY

2.

COMPANY ANALYSIS

5-18

3.

INDUSTRY ANALYSIS

19-33

4.

PROJECT BACKGROUND AND APPROACH

34-38

5.

DATA ANALYSIS

39-46

6.

RECOMMENDATION

47

7.

BIBLIOGRAPHY AND REFERENCES

48

8.

ANNEXTURE

49-50

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EXECUTIVE SUMMARY

The project report gives a detailed introduction of Narnolia Securities Ltd with special mentioning of its products and services and then further an industry analysis along with introduction to Primary and Secondary Market is provided. Narnolia Securities Ltd is one of the largest Broking houses in Jharkhand, with the brokerage received as its main source of income. In the project a market research was conducted to assess the investor behaviour of its clients in the equity/stock market. The management was worried over the dissuading participation of the investors which it ascribed to various macro-economic factors but still it wanted to understand its customers better to find out ways to overcome this situation. The project was undertaken to get insight into the investors interface with the stock market to determine and understand the necessary steps to revamp investors interest and participation in the Stock market investment activities, which have taken a beat lately. A questionnaire was prepared to seek response from the investors and it was further analysed and few recommendations were made.

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INTRODUCTION: COMPANY PROFILE

NARNOLIA SECURITIES LIMITED (AN ISO 9001:2000 COMPANY)

BRIEF HISTORY: BIGGER AND BETTER:

The history of the company dates back to 1993, the brilliant academic track record and a deep understanding of capital market of its founder CMD Mr. Krishna N Narnolia helped him to lay the solid foundation of NARNOLIA with well defined core values and purpose of the organization. 1997, May 1the firm was corporatized. NARNOLIA SECURITIES PVT. LTD was founded, Mr. Shailendra Kumar (B.E., M.Tech, IIT Delhi) as one of the cofounding director also brought with his experience of industry of financial markets. 1999, First branch opened in Dhanbad. 2001, It was decided to make the organization big enough so that world class services can be created and managed efficiently and at the same time to keep it small enough to make the delivery of services personalized. 2002, Entered into strategic tie up with India's premier broking house MOTILAL OSWAL as their exclusive regional partner for the states of Bihar, Jharkhand and parts of West Bengal & Orissa.
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 2004, Tied up with BIRLA SUNLIFE as the exclusive distributor of its life insurance products. Tied up with ENAM as their super franchisee for primary market distribution Won the Best Franchisee Network of the Country Award at Most. 2005, Tied up with the world famous Mutual Fund Advisor 'VALUE RESEARCH' led by Mr. Dhirendra Kumar. 2006, Published a monthly magazine NARNOLIA MUTUAL Won the Best Franchisee Network of the Country Award at MOST Launched NARNOLIA PREMIER CLUB (NPC) for its premium clients 2007, Recognized by Franklin Templeton as the Best Distribution House in the East in terms of No. of application. Recognized by Reliance Life as the best CDA in the country 2008, Nominated by CNBC as the best performing Regional Level Financial Advisor of East for the year 2008 The group took a major leap forward by corporatizing its research initiative in the name of EASTWIND on the patterns of internationally best practices. It launched series of investment (wealth management) and Corporate Benchmarks (E/W INDEX). While the series of Wealth Management Index have been uniquely designed to satisfy the needs of both institutional and private investors as a measurement tool for investment portfolio, the corporate benchmark is meant for our visionary corporate clients to make a strategic comparison of companies' business performance with the peer companies and a benchmarked "best practices" leader. Once strategically restructured, the Investment Banking arm of the group helps the company in fund raising and all other capital budgeting exercise.

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VISION OF NARNOLIA SECURITIES LTD

We will be the most trusted, most knowledgeable, most understanding and most concern provider of value added and customer centric financial service in our strategically chosen class and also mass market.

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MISSION OF NARNOLIA SECURITIES LTD

We commit ourselves both in thought and action to raise ourselves in the eyes of our true boss i.e., the investors from being a mere transaction broker to a true family financial doctor and a secretary to help them to protect and improve their financial health. We further resolve not to sell Daru (gambling) in the bottle of Dawa (investment) and will dare to tell them the difference between the two even if it results into low revenue in the short term. We shall invest most of our time, energy and resources to reduce gaps at each touch points with our existing investors and shall see our growth in their growth. Let us believe that quantity follows quality.

QUALITY POLICY
Narnolia is committed to implementing appropriate quality management system to ensure satisfaction of the client (core purpose) and other interested parties by ensuring the planning and delivery of consistently high level of service as per the predetermined high standards of systems, processes, policies, procedures and behaviours required for each of our financial products throughout the extensive area of operation.

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CORE PURPOSE
Like a Doctor whose primary duty is to save and improve the life of his patient, the primary duty of Narnolia, as an investment and financial advisor, should be to help the customers, protect and create wealth. The profit of the organization should be seen as the secondary objective and as the resultant of the primary duty.

BUSINESS MODEL
The business model is centred on the vision, mission and core purpose of the Organization. It is based on the success stories of the world and unique situations of the country. It was realized that the interest of the customers (core ideology) could best be served if all the world class products and services could be made available to our customers in a personalized way tuned to one's unique personal circumstances. Accordingly decision was taken to enter into some strategic and exclusive tie ups with leaders of each product. The role of our research team comprising several investment experts was to add value to each such products and also to tailor-make it as per specific needs.

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BOARD OF DIRECTORS
Chairman-cum-Managing Director : Krishna Nand Narnolia (Gold Medalist, M.B.A) Shailendra Kumar (B.E,M.Tech.,IIT-Delhi) Dilip Losalka (B.E Hons, BITS,Pilani) C.A. Jasleen Kaur Bhasin (DISA) C.A. Vikash Ranjan Sahay Abhishek Singhania (MBA) Sujeet Kumar Singh (DPCM,MBA) OM Prakash Agarwalla (BTECH) Dharmendra Kumar Sinha (MBA) C.A Anand Kumar Agarwal

Director - Corporate Strategy

Director - Execution & HR

V.P. & Head - NPC (Delhi)

Head - Back Office Operations V.P. & Head Distribution Associate V.P

: : :

Vice President

A.V.P Internal Accounts

Associate V.P- Corporate Finance

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PRODUCTS AND SERVICES

To earn is difficult but to save out of it is more difficult, but even more difficult is to invest such savings in the right avenue of investment. There is no one best way of making money. Sound investing is in fact, a disciplined money management process and should be grounded in an investment plan that is based on one's personal circumstances. It requires an organized knowledge, latest information & conceptual imagination to arrive at such investment plan of an investor .This can be done on one's own or with the help of a financial adviser. We, at NARNOLIA, believe in providing all avenues of investment under one roof, but what differentiates us from others is the quality of each product in terms of suitability, speed, convenience, transparency and above all, the empowering advice the bedrock of which is the WORLD CLASS research and analysis of each product by our team of investment experts in close association with Motilal Oswal Securities. All these facilities of trade execution & advisory services can be availed through any of our over 200 outlets in Jharkhand, Bihar & West Bengal having world class infrastructure. And if you are little computer savvy then even the trade execution can be done by you on your own either at a place of your convenience or at any of our offices using our infrastructure through our net trading platform MY BROKER.

INVESTMENT & TRADING IN SHARES (STOCK MARKET)

Globally it has been experienced that over time, a portfolio of well-chosen shares will always outperform bond or fixed deposit. Motilal Oswal Securities Ltd (MOSt) is the member of both NSE & BSE. It is one of the leading stock brokers of the country and has been rated by the famous Asia Money Poll '05 as the NO 1 in various categories including the most prestigious 'BEST LOCAL BROKERAGE HOUSE OF THE COUNTRY'. End to end equity solution is provided through the online trading terminals by the team of investment experts & relationship managers. NARNOLIA is the exclusive regional partner of MOSt for the states of Jharkhand, Bihar and northern part of West Bengal and is the winner of BEST SUB-BROKER OF THE COUNTRY AWARD twice in 2004 and 2006. Cash Trading: It is a delivery based trading system wherein transactions can be settled intraday or can be settled by taking delivery of shares or monies Margin Trading: It is similar to cash trading except an additional facility wherein the investor interested in taking leveraged position can do so by paying only certain % of the total payment & the balanced amount is

financed by an independent investment company. A separate form is

required to be filled up for availing this facility. Click here for list of shares

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 Spot Payment: Normally under T+ 2 settlement cycle it takes around 3-5 days before the payment gets credited in clients account. In cases where a client having shares in our depository account needs payment early or same day he/she can avail this facility with prior intimation. BNST: Buy Now Sell Tomorrow (BNST) facilitates a client to sell specified shares (as attached) on T+1 basis even before the receipt of shares into his/her demat account. Premium Services: Clients who want to avail the services of our world class research team at MOST and NARNOLIA can do so through one of our Relationship Managers who are closely monitored & guided by our research analysts. A wide array of products is available which are offered to our esteemed investors depending on his/her specific investment objective, time horizon & risk appetite. These products have been classified as (a) INDEX + (b) INTEREST + (c) INTEREST + and (d) ADVISORY + Portfolio Management Service (PMS): It is an alternative to investing directly. All those who do not have time or discipline or inclination or expertise to understand the complex ways of investment ,still want to take benefits of it , can do so by putting their money with the fund managers. Our PMS helps you to earn the returns of Equities, with maximum ease and comfort. We have 3 different schemes Value, Bull's Eye, Discover Value PMS, with different approaches to managing your investments. The team of fund managers is headed by Mr. Raamdeo Agrawal.

INVESTMENT IN EQUITY DERIVATIVES

Trading volume in derivative segment of the exchanges has surged significantly over last few months/years. However, the bias is more towards future than options. There are few misconceptions about this market. It is largely used by speculators to take leveraged positions in the market. It is considered as a mere replacement of the age old badla system of BSE. But the fact is that this derivative market has much larger role to play not only for the speculators but more so for the investors, particularly the high net worth & institutional investors. With the use of certain financial
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management tools like; Standard Deviation, Theta, Delta, Beta, Gamma, Rho, Vega etc , one can create several strategies using multiple types of financial instruments of derivatives market. These strategies can be used by the investors for risk management, hedging, arbitrage and generation of regular incomes out of the idle investment. We, at NARNOLIA, have a dedicated team of investment experts comprising several Chartered Accountants, MBAs etc who are trained at our Narnolia Knowledge Centre and are also closely supported by the experts at MOSt, Mumbai. In house software has been developed by us using all the above advance tools to help the investors to maximize their ROE. In view of the increasing popularity of derivatives amongst speculators we have introduced a very low brokerage scheme (lowest slab being .01%) for our net traders. Please click here for 1 PAISA SCHEME IN MY BROKER.

INVESTMENT THROUGH MUTUAL FUNDS

It is an alternative to investing directly. All those who do not have time or discipline or inclination or expertise to understand the complex ways of investment ,still want to take benefits of it , can do so by putting their money with the money managers: mutual funds who are supposedly the experts in investment matters and are expected to perform better than individual common investor because of their economies of scale, professional approach, experience, investing acumen, access to money market instruments to park their short term/surplus funds etc. All these features have made them globally a powerful and most convenient wealth creation vehicle. As per one estimate 75% of the retail money over next 10 years is supposed to come through mutual funds. But, mutual funds are not magic investment tool and there are a few problems in this expected all powerful investment solution. Mutual fund cannot guarantee either a return or wealth protection, particularly if it is a equity oriented fund. Further, there are around 2300 MF Schemes in India and are likely to multiply even from here on. As such choosing the right scheme of the right fund or the right mix of schemes of different mutual funds, suitable to one's investment objective, time horizon & risk appetite, is a daunting task. The return on investment of different investors will be different depending on the scheme or mix of schemes where they invested their money. We, at NARNOLIA, can assist our investors here as we are the corporate distributor of most of the MFs operational in India and more so, because we have an exclusive tie up with the world famous and India's premier Mutual Fund advisor- VALUE RESEARCH, headed by Mr. Dhirendra Kumar. We work together to arrive at the most efficient and productive investment solution based on specific needs of an individual. A monthly magazine NARNOLIA MUTUAL is jointly published providing some readymade alternatives of scheme mix (portfolio). This is customized further for our clients depending on his/her personal circumstances & needs.

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PRIMARY MARKET
Initial Public Offer (IPO) by non listed companies or follow on offer by presently listed companies presents good opportunities for making high returns on investment in a very short period of time. However, contrary to common belief investment through new issues does not always give high return or guarantee capital protection. We, at NARNOLIA, provide you the list of all forthcoming new issues & in-depth analysis of all such issues. A TEN COMMANDMENTS (click here) is available to all for general guidelines. Online bidding and detailed news, views, follow up, recent listings etc are provided to our investors free of cost. We have a dedicated servicing team to help you to relieve you of all possible hassles of investing in new issues. It is because of this simplicity, convenience & expertise we are far ahead of others in our area of operation with a market share of more than 75% in Jharkhand and in some promising new issue.

DEPOSITORY SERVICES
Our depository services with the trade name of "MODES"- Motilal Oswal Depository Related Services (Member NSDL & CDSL) is available to both our trading & non trading client. We, at NARNOLIA, manage around 40,000 depository accounts of our clients. All normal depository related services (a/c opening, dematerialization, rematerialization, transmission, nomination, pledging etc) are provided by our efficient exclusive team of experts, but what differentiate us from others is some exclusive features of MODES: It is amongst the cheapest of all the D.Ps A client can get automatic trading exposure limit in cash /derivatives segments based on the valuation of his/her holdings. But it has to be settled in cash/shares at the end of the settlement as per T+2 cycle In case the client want leverage in payment, he/she can open margin trading account wherein fund outstanding limit is given to such client based on such holdings in his depository account. It is very much similar to loan against shares with additional benefits of convenience, low cost because interest is charged on daily basis based on actual debits Clients having depository account with us can avail spot payment and BNST facility, whenever he /she need to avail these facilities Clients having holding over 10 lack gets free research reports & recommendations based on most research which has been rated as the No 1 by Asia money poll 2005

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 There is a dedicated support team headed by Smt. Sushma Srivastava with dedicated toll free no (1800 345 4000) to provide you all depository related services and complaint redressal.

COMMODITY
The origin of commodity markets and trading is lost in history. It is the oldest of all the futures market but the nature of deals was largely one off, at least till 1865 when Chicago Board Of Trade began trading futures contracts in grains. In India there are around 21 commodity exchanges but are largely single commodity exchanges and are off line. Commodity market got a major boost in April 2003 when its regulator FMC allowed almost all commodities to be traded .This paved the way for the emergence of Multi Commodity Exchange Of India (MCX) in Nov 2003 and of National Commodity And Derivative Exchange (NCDEX) in Dec. 2003 who launched national level on line trading terminals in a transparent and organized manner. These exchanges have seen a surge in the trading volumes and it is expected that volumes in commodity will surpass the volumes in equity. It will provide a very meaningful option of investment along with other asset class and will have a deeper root with the participation of wider segments of market participants like investors, hedgers, arbitragers, traders, manufacturers, planters, importers, exporters etc. Motilal Oswal Commodities Broker (P) Ltd (click here) is the clearing and trading members of both the exchanges and has a big research team to support various participants in their own way.

INSURANCE
As per several estimates it is said that Indians are grossly under insured and with the growing working age population & their income level this sector should see a rapid growth even from here on. We, at NARNOLIA, realize the importance of insurance as one of the most important asset class while determining the asset allocation for any investor. Our sister concern, NARNOLIA INSURANCE AGENTS CO (P) LTD is the exclusive jeevan chakra partner of Birla Sunlife for Jharkhand and serves its clients from its various outlets in Bihar, Jharkhand & West Bengal, through their qualified advisors. Soon, it will have non-life products as well in its kitty.

CORPORATE FINANCIAL PLANNING

Two companies with similar net profit, net worth (based on balance sheet valuation) and same product line can differ in terms of their wealth creation for the shareholders. We, at NARNOLIA, in close association with the investment banking and private equity wing of MOSt provide various corporate advisory and support services to various listed and unlisted business houses including the SMEs. We provide end to end wealth creation support and solutions: helping the management
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in taking most efficient and effective financial & investment decisions, imparting management skills and also to provide growth capital up to $3 million to $7 million to selected few. A whole lot of exclusive team of experts including IITians, MBAs (IIM) are there to support such esteemed clients.

NARNOLIA KNOWLEDGE CENTRE

Falling interest rate has changed the rule of the money making game. While it has given a boost to the entrepreneurs and consumers, it has, at the same time, made the life of passive investors very difficult, as their age old no brainer ally - fixed deposit in bank/ post office- is yielding a return which is barely enough to beat even inflation. In this context of low interest regime and also when the growth of service sector has outpaced the industrial or agrarian growth, the need of an organized knowledge is increasingly been felt at various levels of economic activity. In view of this we, at NARNOLIA, decided to create an independent department to impart training to all our business partners, branch heads, and relationship managers and also to our respected clients who are eager to know the art of wealth creation. It includes following few modules and is imparted to all in different combinations depending on the need and ability of each trainee: BASIC COURSE: Indian Financial System:-structures, functions. Understanding various financial instruments of capital market via equity, debt etc .Basic knowledge of wealth creation: investment options, asset mix, portfolio building, portfolio restructuring

ADVANCE COURSE: Part 1:-Behaviour of equity market (short term vs. long term, learnings &
unlearning, India story Part 2:-Fundamental & technical analysis Part 3:-Advance knowledge of wealth creation. The financial Horoscope: Need based wealth creation & financial planning strategies

EMERGING TRENDS: -challenges & opportunities SERVICING, MARKETING & BACK OFFICE OPERATIONS

REFRESHER CLASSES & EXAM

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COMPETITORS OF NARNOLIA SECURITIES:

Narnolia Securities in collaboration with Motilal Oswal serves a vast range of all financial products like advisory services, Mutual funds, Bonds, Insurances etc, so all the companies who offer these services are the competitors of the Narnolia. There are many competitors for Narnolia on this basis and almost all of them offer the services which Narnolia offers. Few Major competitors are: SSKI Ltd. (Share khan) Bonanza securities Kotak Securities Religare Securities

Table 1: GROWTH OF THE COMPANY

Year 1993-98 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Location 1 3 7 11 16 27 38 86 126 156 178 200 225 No. of Clients 600 1500 3000 5300 9200 12000 15000 25000 35000 42000 50000 60000 70000 No. of Employees 6 16 28 38 60 94 133 221 450 525 600 700 900
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Why should investors choose for Narnolia?

Excellence is next to nothing and here at Narnolia everybody tries their best to offer excellent services to its clientele through its offerings maintaining the Narnolia culture which includes: 1. Controlled and low cost service culture: Narnolia is there to serve its client at the minimum possible cost. It controls cost by its various cost- cutting techniques and minimization of avoidable costs 2. Large volume processing capability: being the largest financial service provider in the country, it has the unique distinction of operating its activities on a large scale which benefits all the parties cordially 3. Adherence to strict time schedule: Narnolia knows that time is money and tries it best to finish the task within the stipulated time schedule 4. Expertise in coordinating multi-location responses: Narnolia has got a wide network and hence one can find its branches at most of the places in India. Thus it enjoys its presence everywhere and coordinates among itself in solving the queries and in responding to any situation 5. Expertise in managing independent entities such as banks, post-office etc.: the work culture of Narnolia and the ethics followed inside Narnolia makes its workforce compatible with everybody, so the Narnolia people establishes good coordination with independent entities too 6. Pooling of group resources: Narnolia group consists of eight subsidiaries, so it can easily pool up its resources for accomplishment of its goals, whenever needed. The groups can help each other whenever there are peaks and lows, and even in the case when they have huge targets just as we saw few years back, Tata group pooling its resources to acquire Corus.

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INDUSTRY ANALYSIS

Indian Brokerage Industry Overview

The Indian retail brokerage industry consists of companies that primarily act as agents for the buying and selling of securities (e.g. stocks, shares, and similar financial instruments) on a commission or transaction fee basis. It has two main interdependent segments: Primary market and the Secondary market.

Evolution
The Indian broking industry is one of the oldest trading industries that had been around even before the establishment of the BSE in 1875. Despite passing through a number of changes in the post liberalization period, the industry has found its way towards sustainable growth. The evolution of the brokerage market is explained in three phases: pre1990, 19902000, post 2000. Early Years the equity brokerage industry in India is one of the oldest in the Asia region. India had an active stock market for about 150 years that played a significant role in developing risk markets as also promoting enterprise and supporting the growth of industry. The roots of a stock market in India began in the 1860s during the American Civil War that led to a sudden surge in the demand for cotton from India resulting in setting up of a number of joint stock companies that issued securities to raise finance. This trend was akin to the rapid growth of securities markets in Europe and the North America in the background of expansion of railroads and exploration of natural resources and land development. Bombay, at that time, was a major financial centre having housed 31 banks, 20 insurance companies and 62 joint stock companies. In the aftermath of the crash, banks, on whose building steps share brokers used to gather to seek stock tips and share news, disallowed them to gather there, thus forcing them to find a place of their own, which later turned into the Dalal Street.

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A group of about 300 brokers formed the stock exchange in Jul 1875, which led to the formation of a trust in 1887 known as the Native Share and Stock Brokers Association. A unique feature of the stock market development in India was that that it was entirely driven by local enterprise, unlike the banks which during the preindependence period were owned and run by the British. Following the establishment of the first stock exchange in Mumbai, other stock exchanges came into being in major cities in India, namely Ahmadabad (1894), Calcutta (1908), Madras (1937), Uttar Pradesh and Nagpur (1940) and Hyderabad (1944). The stock markets gained from surge and boom in several industries such as jute (1870s), tea (1880s and 1890s), coal (1904 and 1908) etc, at different points of time. Beginning of a new equity culture. The Securities and Exchange Board of India (SEBI), which was set up in 1988 as an administrative arrangement, was given statutory powers with the enactment of the SEBI Act, 1992. The broad objectives of the SEBI include protecting the interests of the investors in securities to promote the development of securities markets and to regulate the securities markets. The scope and functioning of the SEBI has greatly expanded with the rapid growth of securities markets in India in the last fifteen years. National Stock Exchange was incorporated in Nov 1992 as a tax paying company, the first of such stock exchanges in India, since stock exchanges earlier were trusts, being run on no-profit basis. NSE was recognized as a stock exchange under the Securities Contracts (Regulations) Act 1956 in Apr 1993. It commenced operations in wholesale debt segment in Jun 1994, capital market segment (equities) in Nov 1994. The setting up of the NSE brought to Indian capital markets several innovations and modern practices and procedures such as nationwide trading network, electronic trading, greater transparency in price discovery and process driven operations that had significant bearing on further growth of the stock markets in India. Faster and efficient securities settlement system is an important ingredient of a successful stock market, to speed the securities settlement process.

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AN OVERVIEW OF THE INDIAN GLOBAL MARKET

Indian Global Market
The stature and significance of India is growing in the world capital markets. India is not only attracting greater interest from world markets, but is also assuming increasing importance in global finance. India is a major recipient of foreign institutional flows amongst the emerging markets Since the opening up of domestic stock markets to foreign investors, cumulative net FII investments reached Rs 517 Billion by 2008 end India is major destination of private equity flows into the emerging markets India emerged a trillion dollar market capitalization market in 2007, India is among the top 10 stock exchanges in the world in terms of market capitalization India is amongst the top 15 stock exchanges in the world in respect of equity turnover India emerged as a leading player in commodities futures market India is amongst the top 5 in the number of transactions India is among the top 5 in respect of volume traded in Stock Index Futures and Stock Futures India Indian stock markets have the largest number of listings, with trading taking place in about 2,500-3,000 stocks Indias most popular stock index (Sensex) is constructed on the basis of full float methodology, India has one of the firsts in the Asian region and a global standard Indian market indices such as Sensex and CNX Nifty are listed in foreign exchanges for trading as ETFs.

Market Segments
Securities markets provide a channel for allocation of savings to those who have a productive need for them. The securities market has two interdependent and inseparable segments: primary market and secondary market.

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Primary Market
Primary market provides an opportunity to the issuers of securities, both Government and corporations, to raise resources to meet their requirements of investment. Securities, in the form of equity or debt, can be issued in domestic /international markets at face value, discount or premium. The primary market issuance is done either through public issues or private placement. Under Companies Act, 1956, an issue is referred as public if it results in allotment of securities to 50 investors or more. However, when the issuer makes an issue of securities to a select group of persons not exceeding 49 and which is neither a rights issue nor a public issue it is called a private placement.

Secondary Market
Secondary market refers to a market where securities are traded after being offered to the public in the primary market or listed on the Stock Exchange. Secondary market comprises of equity, derivatives and the debt markets. The secondary market is operated through two mediums, namely, the Over-the-Counter (OTC) market and the Exchange-Traded market. OTC markets are informal markets where trades are negotiated.

Participants
The securities market has essentially three categories of participants: the investors the issuers the intermediaries These participants are regulated by the Securities and Exchange Board of India (SEBI), Reserve Bank of India (RBI), Ministry of Corporate Affairs (MCA) and the Department of Economic Affairs (DEA) of the Ministry of Finance.

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Market Segments and their Products

The Exchange (NSE) provides trading in four different segments: Wholesale Debt Market (WDM) Segment: This segment at NSE commenced its operations in June 1994. It provides the trading platform for wide range of debt securities which includes State and Central Government securities, TBills, PSU Bonds, Corporate debentures, Commercial Papers, Certificate of Deposits etc Capital Market (CM) Segment: This segment at NSE commenced its operations in November 1994. It offers a fully automated screen based trading system, known as the National Exchange for Automated Trading (NEAT) system. Various types of securities e.g. equity shares, warrants, debentures etc. are traded on this system Futures & Options (F&O) Segment: This segment provides trading in derivatives instruments like index futures, index options, stock options, and stock futures, and commenced its operations at NSE in June 2000 Currency Derivatives Segment (CDS): This segment at NSE commenced its operations on August 29, 2008, with the launch of currency futures trading in US Dollar-Indian Rupee (USD-INR). Trading in other currency pairs like EuroINR, Pound Sterling-INR and Japanese Yen-INR was further made available for trading in February 2010. Interest rate futures was another product made available for trading on this segment with effect from August 31, 2009.

Various important measures taken by Government to improve the condition of Indian Stock Market:
Allow foreign institutional investors to invest in equity and debt markets through liberalization of stock market to attract foreign investment Expanding the product range offered by the stock exchanges by bring Indian market at par with the international standards and diversify product portfolio Allowing Indian companies to issues ADRS and GDRS Allow Indian nationals and companies to invest abroad

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 Facilitate market integration and give freedom to the companies Access to more funds for investment Divestment of government ownership Strengthening of institutional framework in primary and secondary markets Demutualization Facilitate growth through privatization to ensure transparency Investor protection Provide a standard framework for operations Deregulation Reduces the conflict of interest Maintain corporate bond reporting platforms to capture all information relating to trading for Investor protection Making PAN compulsory Transactions necessarily settled through clearing house Permit Gold Exchange Traded Funds Introduction of mutual fund schemes Strengthening KYC (Know Your Client) Investor protection and greater control Generate options for companies and investors Minimize risk for investors and ensure returns

Market Size and Characteristics:

Markets in tune with the global stock markets that began to recover from the second half of 2003; Indian stock markets too witnessed rapid growth. Indias two leading indices, the most popular BSE Sensex, and the one most used by the markets the National Stock Exchanges S&P CNX Nifty rose to record levels. Both primary and secondary market activity experienced sharp surge. Much progress was made in further strengthening and streamlining risk management, market regulation and supervision. A few aspects of the major developments in the Indias stock markets are described below: Table 2: Registered Market Intermediaries Table 3: Exchange Wise Registered Brokers

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Table 4: Estimates of Investor and Non-Investor Households by Type of Investment (in Crore) Table 5: Market Capitalization - BSE and NSE Table 6: Equity Broking Companies Table 7: Product Grid for Brokerage Industry

Table 2: Registered Market Intermediaries

Market Intermediaries
Stock Exchanges(Cash Market) Stock Exchanges(Derivatives Market) Brokers(Cash Segment) Corporate Brokers(Cash Segment Sub-Broker(Cash Segment) Broker (Derivative) Foreign Institutional Investors Custodians Depositories Depository Participants Merchant Bankers Underwriters Debenture Trustees

2011
19 2 9,235* 4,563 83,952 2,301 1,722 19 2 805 192 3 29

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Credit Rating Agencies Venture Capital Funds Foreign Venture Capital Investors Registrars to an Issue & Share Transfer agents Portfolio Managers Mutual Funds

6 184 153 73

267 51
SOURCE: S.E.B.I HAND BOOK 2011

Table 3: Exchange Wise Registered Brokers

Stock Exchange Sub-Brokers Ahmedabad Bangalore BSE Bhubaneshwar Calcutta Cochi Coimbatore Delhi Gauhati ICSE Jaipur Ludhiana 93 158 38,124 16 79 41 20 239 4 1 32 35 2010-2011 Corporate Brokers 177 131 1,087 19 201 81 48 286 3 348 18 89 Total Brokers 333 270 1,301 215 901 441 136 481 97 943 481 307

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Madhya Pradesh Madras NSE OTCEI Pune UPSE Vadodara TOTAL

5 109 44,783 17 156 3 37 83,952

42 85 1,239 536 54 73 64 4,563

SOURCE: S.E.B.I HAND BOOK 2011

203 211 1,389 701 185 328 312 9,235

Table 4: Estimates of Investor and Non-Investor Households by Type of Investment (in Crore)

Equity Investors Only Total NonTotal Household Households Bonds/ investor Investor (all Particular Only Equity & Total Debentures Households Household HouseHousehold holds) equity Debentures All India 0.4 0.3 0.7 0.7 1.3 16.3 17.7 Urban Rural 0.3 0.1 0.2 0.1 0.5 0.2 0.3 0.3 0.8 0.5 4.3 12.0 5.1 12.5

SOURCE: S.E.B.I HAND BOOK 2011

Table 5: Market Capitalization BSE and NSE

Month/Year April May

2009-2010 NSE 33,75,025 45,64,572 BSE 35,86,978 48,65,045

2010-2011 NSE 61,17,858 59,32,576 BSE 62,83,196 60,91,264

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June July August September October November December January February March

44,32,596 48,16,459 49,75,800 53,53,880 50,24,830 54,30,088 56,99,637 57,82,965 57,55,305 60,09,173

47,49,934 51,39,942 52,85,657 57,08,337 53,75,920 57,95,209 60,81,308 59,25,725 59,04,929 61,65,619

62,29,136 63,40,120 63,93,418 69,58,534 70,55,094 68,94,912 71,39,310 64,41,491 61,95,967 67,02,616

63,94,001 65,10,777 65,62,025 71,25,807 72,24,908 70,67,845 72,96,726 65,95,280 63,43,072 68,39,084

SOURCE: S.E.B.I HAND BOOK 2011

Table 6: Equity Broking Companies

Brokerage Company
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. India bulls Securities Limited Reliance Money Limited Bonanza Portfolio Limited Angel Broking Limited Motilal Oswal Securities Limited Marwadi Shares & Finance Private Limited India Infoline Limited Anand Rathi Securities Limited Jhaveri Securities Private Limited Karvy Stock Broking Limited Asit C Mehta Investment Intermediates Limited Networth Stock Broking Limited Emkay Share & Stock Brokers Limited Unico Financial Intermediaries Private Limited
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Table 7: Product Grid for Brokerage Industry

Product grid comprises of all the products offered by brokerage or securities industry. This industry is one of major emerging industry in the country as it helps in dealing with various financial aspects which help in building a good financial portfolio for an individual or corporate. Product grid, in simpler terms, can be explained as the whole basket of products offered by brokerage industry to its customers. This can further be explained by taking various companies operating in this sector and thereby comparing the products offered by these companies.
Indian Bulls Kotak Securities India Infoline Gecapital Birla Y Y N Y Y Y N Y Y N N N N N N N N Y N N N N N Y N N Y Y N N Y Y N Y Y N N Y Y Y Y N N N N Y Y Y Y N N N N N N N Y Y N N Y Y N N Y Y Y Y Y N N Y N N N N Y Y Y N N N N N N N Y N N N Y Y N N Y Y Y Y N Y Y N Y Y N N N N Y N N Y N Y Y Y Y Y N N Motilal Oswal Reliance Money Karvy Global Finance Share Khan Sundara m Finance Y Y Y N Y N N N Y N N N Y N N N N Y Y N N N N N Y N N N N N Y Y N N Y Y N Y Y N N N N N N N N Y N N N N N N N N Y Y N N Y Y N N Y Y Y N Y N N Y Y N N N N Y N Y N N N Y Y N N N N N
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Equities Derivatives Margin funding Depositary services Portfolio management Commodity Wealth management Research Mutual fund Structured products Third party products Insurance Real estate Tax planning Off-shore investment e-broking Mortgages IPO Loans BPO KPO Bonds Promoter financing Retail financing Corporate financing Asset financing On-line Debt market Investment banking Mergers

Y Y Y Y Y Y Y Y Y N N N N N N Y N Y N N N N N N N Y Y Y N N

Y Y N Y Y Y N N Y Y Y Y Y Y Y Y N Y N N N N N N N N Y Y N N

Y Y N Y Y Y N N Y N Y Y Y N N N Y N Y Y Y Y Y Y Y N N Y Y N

PORTERS FIVE FORCES

Porter's five forces analysis is a framework for the industry analysis and business strategy development developed by Michael E. Porter of Harvard Business School in 1979. It uses concepts developed in Industrial Organization (IO) economics to derive five forces which determine the competitive intensity and therefore attractiveness of a market. Attractiveness in this context refers to the overall industry profitability. An "unattractive" industry is one where the combination of forces acts to drive down overall profitability. A very unattractive industry would be one approaching "pure competition". Porter referred to these forces as the micro environment, to contrast it with the more general term macro environment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit. A change in any of the forces normally requires a company to re-assess the marketplace. The overall industry attractiveness does not imply that every firm in the industry will return the same profitability. Firms are able to apply their core competences, business model or network to achieve a profit above the industry average.

Bargaining Power of Customers

Threats of new Entrants

Bargaining Power of Suppliers

Competitive rivalry within a industry

Threats of Substitute Products

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The threat of substitute products:

The existence of close substitute products increases the propensity of customers to switch to alternatives in response to price increases (high elasticity of demand).

The threat of the new entry:

The threat of the entry of new competitors profitable markets that yield high returns will draw firms. This results in many new entrants, which will effectively decrease profitability. Unless the entry of new firms can be blocked by incumbents, the profit rate will fall towards a competitive level (perfect competition).

Competitive rivalry within a industry:

The intensity of competitive rivalry for most industries, this is the major determinant of the competitiveness of the industry. Sometimes rivals compete aggressively and sometimes rivals compete in non-price dimensions such as innovation, marketing, etc.

The bargaining power of customers:

The bargaining power of customers also described as the market of outputs. The ability of customers to put the firm under pressure and it also affects the customer's sensitivity to price changes.

The bargaining power of suppliers:

The bargaining power of suppliers also described as market of inputs. Suppliers of raw materials, components, labour, and services (such as expertise) to the firm can be a source of power over the firm. Suppliers may refuse to work with the firm, or e.g. charge excessively high prices for unique resources.

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The relevance of five forces model in the Indian Brokerage Industry

The Bargaining Power of Customers

Lack of Expertise Curtails Bargaining Power Retail investors often lacks the knowledge and expertise in the financial sector that calls them to approach the broking houses. Low Product Differentiation Proves Beneficial the retail broking services provided by the various companies are homogeneous with very low product differentiation. This allows customers to enjoy a greater bargaining power.

The Bargaining Power of Suppliers

Increased Dependence on IPOs There is a growing dependence of corporate on broking houses with the rising number of IPOs coming to the market.

The Intensity of Competitive Rivalry

Move towards consolidation Lot of brokerage companies are moving towards consolidation with the smaller ones becoming either franchisees for the larger brokers or closing operations. Increased Focus of Banks in Retail Broking Various foreign banks like ABN Amro and others are planning to enter the Indian retail brokerage industry. Online Trading Competes with Traditional brokerage there is an increasing demand for online trading due to consumers growing preference for internet as compared to approaching the brokers.

Threat of New Entrants

Entry of Foreign Players New forms of trading including T+2 settlement system, dematerialization etc are strengthening the retail brokerage market and attracting foreign companies to enter the Indian industry.

The Threat of Substitute Products

Alternative Investment Options Various alternative forms of investment including fixed deposits with banks and post offices etc act as substitutes to retail broking products and services. Now even various banks provide similar type of services. They also give the same service of portfolio management and wealth management.

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SWOT ANALYSIS OF BROKERAGE INDUSTRY

STRENGTHS

Multiples engines of growth- an integrated financial services platform Well established and continuously expanding geographical footprints Unique, stable and scalable business model India is world second largest country with D-Materialized accounts.

Lack of visible goodwill among minor players Lack of trust on companies by customers Psyche of people in India is converging

WEAKNESSES

OPPORTUNITIES

Structure of the industry, market size, and growth rates-huge potential in Indian capital market Liberalization of markets by government Proactive and progressive nature of Indian brokerage industry(India ranks amongst top five globally in this segment)

THREATS

High degree competition Fluctuations in government policies Political framework Developing Indian economyc

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PROJECT BACKGROUND & APPROACH

1. Problem Statement 2. Research Objectives 3. Research Methodology 4. Questionnaire Design

Problem Statement
Narnolia Securities Ltd. has been successfully providing financial services to its clients but lately the management is worried about the declining enthusiasm regarding investment in Equity stocks amongst its clients in Ranchi. The management considers the lacklustre performance of the index and the dearth of government policies as the main reason for the problem. So, it was decided to assess the investors behaviour to have a better perspective of their approach towards stock market and investment decisions, that can subsequently help the company in considering the steps to reinvigorate the investors interests and offer them more customise services.

Research Objective
To get insight into the investment behaviour of the clients investing in Equity Stocks for Narnolia Securities Ltd in the Ranchi area. To analyse the factors that shape the clients investment activities and thus focus on the important factors to improve services.
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Research Methodology
Research Design Type of Research: Descriptive-Survey Type of Data: Primary Data Collection tool: Researcher Administered Questionnaire Data Collection method: Structured Interview

Sampling Design Sampling method: Convenience sampling Population Size: 15000 accounts Sample Size: 150 accounts (Considering the resource constraints i.e. time, money and manpower, a nonprobabilistic convenience sampling method was adopted to select a sample of 150 clients from a population of 15000 clients. Also a sample size of 150 for a population of 15000 with a confidence level of 95% gives a confidence interval of +-8.

Statistical tools used: Factor Analysis, Percentage Analysis, Pivot Tables, Pie charts, Bar Graphs), SPSS.

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Questionnaire Design

The questionnaire comprised of the following questions that the respondents were needed to answer to fulfil the objective of the research.

The respondents were asked for some personal information like their name, age group, gender and profession. Here the age group and profession of the respondents were important information as these would help to determine the popularity of stock market investments amongst various age groups and professions.

1. In which sector you invest most? Here the idea was to know the popularity of various sectors so that the company can accordingly increase its focus on the research on such sectors accordingly. 2. Why do you invest in equity market? This question helped in determining if the client is long term player or a short term player. 3. What attracts you towards equity market? The response to this question helped us understand the various factors according to the importance assigned to them by the respondents. 4. What is the purpose of investment? This question fulfilled the purpose of knowing with what agenda the clients invest in the stock market and thus this might help the company to help its clients fulfill their purpose of investment. 5. Generally what is the holding period of equity? The response to this question helped in understanding the clients modus operandi and this would help the company to distinguish between investment approach of its clients.

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6. Are you a trader or Investor ?(Mark All that applies) Here we determined the level of involvement of the clients in the market and categorised them according to their frequency of involvement in the market. 7. Do you think stock market research is essential for investing your money to earn high returns? The idea was to know if the clients lay importance to research, which would help the company in knowing to what extent it needs to involve its clients in such market study/research. 8. What induces you to trade in a particular stock ? This question helped in determining the factors that the clients consider important before making investment in any particular stock. 9. What kind of investing or trading do you adopt ? This question helped in getting an insight into what is the risk appetite of the clients in relation to the return that they expect. 10. What kind of risk appetite do you have ? To understand the risk appetite of the clients this question was asked. This will help the company to classify the no. of clients under the survey based on their risk taking capacity.

11. What sources of funds do you utilize to invest or trade in the stock Market? The idea was to know how do the respondents finance their investment activity. Company can thus come to know if there is some financial hardship its clients are facing and thus the company can focus on its financing activities, if needed.

12. What is total household income (monthly) ? The response to this question was to know the income of the clients. This would help the company differentiate their focus on various categories of clients .

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13. For how many years you have been trading or investing in stock market? The idea was to know how experienced the clients are. The categorisation on the basis of the experience they have will help company to strategies about its investors education. 14. How much is your total investment annually? To know the investment capability of the respondents this question was asked. This will also let the company identity high value clients. 15. What percentage of your investment is invested in equity market? The response to this question will help the company know the share of equity market investments in the total investment portfolio of its clients. This will help company decide if there is any scope to increase the share of equity the clients portfolio.

16. According to you, what are the factors responsible for fluctuations in Indian Stock Market ? (Mark all that applies) The idea was to know the understanding of the stock market and the factors responsible for the fluctuations in its clients opinion. 17. What is your pattern of investing or trading ? The idea was to categories clients investing in variety of stock,a few particular stocks or both. 18. Are you a panic buyer or seller while investing or trading in a stock ? To know the behaviour and reaction of the clients this question was asked. 19. How helpful are the services provided by Narnolia Securities in facilitating the trading and investment related activities? The answer to this question will help the management in knowing what the current perception do its clients have for Narnolia Securities Ltd.

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DATA ANALYSIS AND FINDINGS

Personal Information Analysis

Age Group Age Group (in yrs)

14% 33%

22%

19-25 26-35

31%

36-50 Above 50

Profession

Profession
Student 10% Other 10% Service 24%

Business 56%

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It can be seen from the pie chart that people between the age group of 36-50 are mostly involved in the stock market with almost a third (33%) of the whole sample, also age group of 26-35 also constitutes a major chunk. Together they comprise of 2/3rd of the whole sample suggesting that the popularity of the stock market is mainly amongst the middle aged people. Also 93% of the people surveyed were male, with females constituting only 7%. It is observed that the participation of Businessmen is the highest (56%) followed by service people (24%), students and others contribute 10% each. Higher participation of businessmen is justified as they are high risk takers and stock market is relatively a risky investment avenue.

1. The most popular sector amongst the investors are Banking (15%), IT (13%), FMCG(12%), Oil&Gas(10%), metal&mining(9%),Infrastructure(8%). Pharma sector is the least preferred as only 5% respondents opt for it.

Sector Preference
35 30 28 24 18 12 17 20 19 29

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2&3. When asked about the reason to enter stock market, most of the respondents i.e. 61% answered for quick short term gain while 39% said for long term return. The most attractive feature of stock market for the investor is its high returns(76%), the second most attraction is liquidity of funds.

115 95

35 22

High Return

Speculation

Dividend

Liquidity of invested fund

4. When asked about purpose of investment 65 repondents(43%) want to meet the cost of inflation, 52 respondents(35%) want to meet certain specific goals in life. 5. A total of 91 respondents(61%) in the survey take delivery of the stocks while 36 respondents(24%) are involved in intraday trading. There are 27 such respondents who are involved in both.

Both 18%

Intraday 23%

Delivery 59%

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6. Amongst the respondents most are short-term investors (41%),followed by long term investors(36%). From the analysis it is clear that there are few respondents who both investor and trader.

70 60 50 40 30 20 10 0 Trader Occasional Trader 49 40

62 54

Long term investor

Short term investor

7 & 8. An overwhelming 123 respondents are of the opinion that stock market research is essential for earning high returns, while there are 27 respondents who dont think research important. This belief is further reinforced when 63% respondents attributed research reports for inducing them into trading in any stock. Also the past experience of the respondent was important factor followed by intuitions broker advice and street rumours. It was quite unexpected that only 16% respondents showed confidence in the brokers advice. This can be an area of concern.

No 18%

Yes 82%

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100 80 60 40 20 0

94

Inducing Factors
80 66

25

30 18

9 & 10. Most of the respondents (48%) considered themselves as an average risk

taker with medium risk appetite and since the risk appetite was medium to low, most of the respondents(49%) were adopting low risk-low return options. This data suggests that people here are conservative when it comes to stock market investment.
High Risk High Return 29% Low Risk High Return 21%

Low Risk Low Return 50%

11&12. Most investors(49%) use their savings to finance their investments in stock

market, some(29%) investors use their income to invest in stocks. Also 85 respondents (57%) are in the income bracket of Rs. 10,000 30,000,followed by 30,000 60,000 with 43 respondents(29%). Higher income group i.e. 60,000 and above constitutes only (15%). This suggests that the clients are mostly of lower to middle income bracket but since respondents generally misrepresent their income, there are chances of inconsistency.
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90 80 70 60 50 40 30 20 10 0 21 12 44 73

85

43

14 8

13. Most of the respondents have been investing for a few years and do have fair bit of experience of the market
60 50 40 30 20 10 0 <1 year 1-3 years 3-5 years >5 years 24 38 35 53

14&15. Again people misrepresent data regarding their investment, however we can see that the highest frequency(62) of respondents falls in the bracket of 15,000-60,000. Also, majority respondents (40%) have 25-50% of their investments in stock market. Only 15% people had >75% of their total investment in stock market. This again suggests that the investors mainly are moderate risk takers.

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70 60 50 40 30 20 10 0 45

62

60

30 13

34

34 22

16. In response to the factors responsible for the market fluctuations highest number of respondents(60%) held government policies responsible. Market sentiments and global news were also considered as important factors for the fluctuations.

90 90 80 70 60 50 40 30 20 10 0 FII FDI Govt. Policies Market Sentiments Globals News 11 43 81 80

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19. More than half of the respondents(51%) considered services provided by Narnolia Securities to be helpful, while 25% considered it very helpful, 13% respondents considered it not helpful and 11% dont have any opinion.

Cant say 11% Not helpful 13% Very helpful 25%

Helpful 51%

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RECOMMENDATIONS
There is a vast scope in the people of age group 26 50 as they constitutes almost 2/3rd of the sample, so the company should focus more on this age group as they are relatively aggressive and ambitious in their investment activities. Also more than half(56%) of the clients surveyed were businessmen which justifies the reasoning that investing in stock market is suitable for such people, so the company should reach out to the business class and market their services in their fraternity. In the survey since it was reflected that sectors like Banking, IT and FMCG are most popular amongst the investor, the company should intensify its research facilities for such sector to offer even better services to its clients.

The purpose of investment for various clients differ so the company should categories the clients based on their purpose and provide service accordingly to fulfil their purpose respectively. Most of the companys clients are investors, so the company should encourage and focus more on trading activities as frequent transactions will result in higher brokerage collection. The respondents have given overwhelming importance to the stock market research so Narnolia Securities Ltd. should further improve its research facilities, also the company should take initiatives to empower its client to do basic research on their individual capacity. A shocking information came into focus when in response to a question only 17% investors considered Brokers advice as an inducing factor for investment, so there is a great potential for the company to improve this figure by providing better advice to its clients and subsequently garnering their trust. Also most of the clients surveyed belonged to lower to middle income group i.e. 10,000-30,000 and 30,000- 60,000 and very few were from higher income bracket, although this might be inconsistent data, so the company should try to incorporate more high value customers in its customer base and should also encourage the lower- value creating customers by financing some part of their investments in stock market for a short-to-medium term period.

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BIBLIOGRAPHY & REFERENCES

Books, Journals & other references
MARKETING RESEARCH BY PHILIP KOTLER THE ECONOMIC TIMES THE BUSINESS STANDARD S.E.B.I HANDBOOK 2011

Websites
www.narnolia.com www.mutualfundsindia.com www.valueresearchonline.com www.rediffmoney.com www.bseindia.com www.nseindia.com www.investopedia.com

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ANNEXURE
QUESTIONNAIRE
Personal Information: Name: ____________________________________________________ Age: 19-25 Gender: Male Profession: Service 26-35 Female Business Student Other 36-50 Above 50

1.In which sector you invest most? IT Pharma Telecom Banking Infra Auto Oil & Gas

FMCG

Metal & mining

Others

2.Why do you invest in equity market? For quick short term gain 3.What attracts you towards equity market? High return Speculation Dividend Liquidity of invested fund For high long term gain

4.What is the purpose of investment? To meet the cost of Inflation To earn return on idle resources To generate a specified sum of money for a specific goal in life To make a provision for an uncertain future 5.Generally what is the holding period of equity? Intraday Delivery Both

6. Are you trader or Investor (Mark All that applies) Trader Occasional Trader Long Term Investor Short Term Investor

7.Do you think stock market research is essential for investing your money to earn high returns? Yes No

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8. What induces you to trade in a particular stock ? Research Reports Past Experience Brokers Advice Intuitions News Street Talk / Rumors

9.What kind of investing or trading do you adopt ? High Risk - High Return Low Risk - High Return Low Risk - Low Return

10.What kind of risk appetite do you have ? High Medium Low

No Risk / Safe Investments

11.What sources of funds do you utilize to invest or trade in the stock Market? Savings Income Loans 12.What is total household income(monthly) ? 10000-30000 30000-60000 60000-100000 Pledging

>1 lac

13. For how many years you have been trading or investing in stock market? Less than 1 Year 1 - 3 years 3 - 5 years >5 years

14. How much is your total investment annually? Below 15,000 15,000 60,000 60,000 2,00,000 >2 lacs

15.What percentage of your investment is invested in equity market? Less than 25% 25-50% 51-75% More than 75%

16. According to you, what are the factors responsible for fluctuations in Indian Stock Market. ? (Mark all that applies) FII FDI Government Policies Market Sentiments Global news

17.What is your pattern of investing or trading ? Repeatedly invest or trade in same set of stocks Invest or trade in variety of stocks No fixed pattern

Thank you for giving your precious time to us.

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