CHAPTER – IV

DATA ANALYSIS AND INTERPRETATION

 DATA ANALYSIS & INTERPRETATION

1. To understand the Equity Analysis profile of investors:

What do you expect when you invest ?
CHART-1

Sl No No Risk Normal Risk Moderate Risk Higher Risk

1 36 40 18 2

Risk
45
40
35
30
25
20 Risk

15
10
5
0
No risk Normal Risk Moderate Risk Higher Risk

Interpretation:- This chart-1 shows, out of 96 respondents 40 people are ready to bear
nominal Equity Analysis and 36 people don’t want to take any Equity Analysis. This shows
that around 79% respondents are conservative in terms of taking Equity Analysis and only
21% respondents are ready to bear Equity Analysis and out of these 21 % only 3% are ready
for high Equity Analysis situation.
2. How long do you normally hold investment?

Sl No For a Day For a Week For a Month For a Year

1 36 40 18 2

CHART -2

TIME PERIOD
35

30

25

20

15

10

0
FOR A DAY FOR A WEEK FOR A MONTH FOR A YEAR

Interpretation:- As per Chart-2,most of the respondents invest for a longer time period i.e.
around 32% and rest of the respondents have very less variability regarding holding of
investment as all other respondents are equally interested in daily, weekly or monthly
holding of investment i.e. around 20% go for each kind of investment holding.
3. If your investments were to fall in value by 15 per cent over a one-year
period.

Sl No Withdraw Take our Wait until For a stick to Invest more

all money some money market the money in the
from share and move it recovers the investmentear same
market to safer loss and then investment as
investment comsider it is 15%
other cheaper
investment
1 36 40 18 2

Chart -3

.
Interpretation:- Chart-3 is giving the overview regarding respondents reaction related to
their investment, if market falls in value. We can see here the respondents /investors are
neither very conservative nor aggressive in market condition i.e. only 15% investors are
willing to withdraw all money or invest more money in such situation. Most of the
respondents are aware & ready for such condition. They want to be in the market in
expectation of money of market.
4.You are ready for limited losses in expectation of higher long-term
returns?
Chart-4

Sl No Strongly Disagree Neither Agree Strongly

disagree Agree or Agree
Disagree
1 14 16 24 36 6

LIMITED LOSSES IN EXPECTATION OF

HIGHER RETURNS
40
35
30
25
20
15
10
5
0
STRONGLY DISAGREE NEITHER AGREE STRONGLY
DISAGREE AGREE OR AGREE
DISAGREE

Interpretation:- Chart-4 is about that whether investors are ready to bear limited loss in
expectation of high returns we find that only around 30% investors are not agree for this but
around 70% are considering the idea i.e. most of the respondents are aware about the ups &
downs of stock market & ready for Equity Analysiss involved in it in expectation of getting
higher returns.
5. I am willing to experience the ups and downs of the market for the
potential of greater returns.

Sl No Strongly Disagree Neither Agree Strongly

disagree Agree or Agree
Disagree
1 5 11 39 35 6

Chart-5

EXPERIENCE UPS AND DOWNS OF

MARKET
45
40
35
30
Axis Title

25
20
15
10
5
0
STRONGLY DISAGREE NEITHER AGREE STRONGLY
DISAGREE AGREE OR AGREE
DISAGREE

Interpretation:- Chart-5 is about that whether investors are ready to experience ups and
downs of market we find that only around 16% investors are not agree for this but around
84% are considering the idea i.e. most of the respondents are aware about the ups & downs of
stock market & want to experience that.
 1. My main concern is security; keeping money safe is more important
than earning high returns.
Sl No Strongly Disagree Neither Agree Strongly
disagree Agree or Agree
Disagree
1 2 4 24 32 34

Chart-6

MAIN CONCERN IS SAFETY

40
35
30
25
Axis Title

20
15
10
5
0
STRONGLY DISAGREE NEITHER AGREE STRONGLY
DISAGREE AGREE OR AGREE
DISAGREE

Interpretation:- This chart -6 shows the investors are aware about the highs and lows of
security market and want to experience that also they are quite positive towards market as
they expect after a low market will recover & give them higher return still the safety is major
concern of investors. Out of total 96 respondents only less than 10% disagree with the fact.
7. I am fairly experienced in investment.
Sl No Strongly Disagree Neither Agree Strongly
disagree Agree or Agree
Disagree
1 4 15 43 29 5

Chart-7

FAIRLY EXPERIENCED IN INVESTMENT

50
45
40
35
30
25
20
15
10
5
0
STRONGLY DISAGREE NEITHER AGREE STRONGLY
DISAGREE AGREE OR AGREE
DISAGREE

INTERPRETATION:- As we can see in the chart-7, most of the respondents i.e. around
50% are not sure about their investment capabilities. They are not very sure that their
expectation of decision is fair enough. Here I want to mention that the market is so volatile in
India that very less investors find themselves fairly enough experienced & don’t bear losses.
8. I am very secure related to my future income (such as from salary,
pension or other investments)?
Sl No Strongly Disagree Neither Agree Strongly
disagree Agree or Agree
Disagree
1 2 4 15 23 52

Chart-8

SECURE RELATED TO FUTURE INCOME

60

50

40

30

20

10

0
STRONGLY DISAGREE NEITHER AGREE STRONGLY
DISAGREE AGREE OR AGREE
DISAGREE

Interpretation:- Chart-8 shows that most of people involve in security market are quite
secured related to their future income. We can also understand the statement that the people
who have fair enough income resources, comes in security investment as they consider all the
pros. & cons. Of the market they know that the market is good place to get better returns but
it also contain Equity Analysis so losses bearable only in the case of secured future returns.
 1. To study Equity Analysis bearing capacity on the basis of gender,
education, occupation, age, family income and number of dependents
To fulfill this objective I used cross tabs & chi-square test
The results are compiled in a sheet which shows the significance value & chi- square values
of all the cross tabs. Here I am providing 2 null hypothesis & 2 alternative hypothesis
conditions as sample.
A. Sample- Null Hypothesis:

1.1: Gender in respect of expectation from an investment

X1 * X9 Crosstabulation
Count
X9 Total
NO NOMINAL MODERATE HIGHER EQUITY
EQUITY EQUITY EQUITY ANALYSIS
ANALYSIS ANALYSIS ANALYSIS
X1 MALE 27 29 13 2 71
FEMALE 9 11 5 0 25
Total 36 40 18 2 96

Chi-Square Tests
Value Df Asymp. Sig. (2-sided)

Pearson Chi-Square .797a 3 .850

Likelihood Ratio 1.299 3 .729
Linear-by-Linear Association .011 1 .917

N of Valid Cases 96

a. 3 cells (37.5%) have expected count less than 5. The minimum expected count is .52.

Interpretation: - As the chi-square shows the value of P is higher than .05, we will accept
null hypothesis i.e. there is no significant relationship in between the expectation from
investment with change in gender. Males and females are equally Equity Analysis averse &
conservative related to taking Equity Analysis in stock market.
1.2: Gender in respect of holding time of investment
 X1 * X10 Crosstabulation
Count
X10 Total
DAY WEEK MONTH YEAR
X1 MALE 15 19 13 24 71
FEMALE 7 6 5 7 25
Total 22 25 18 31 96

Chi-Square Tests
Value Df Asymp. Sig. (2-sided)

Pearson Chi-Square .656a 3 .883

Likelihood Ratio .647 3 .886
Linear-by-Linear Association .384 1 .536

N of Valid Cases 96

a. 1 cells (12.5%) have expected count less than 5. The minimum expected count is 4.69.

Interpretation :- As the chi-square shows the value of P is higher than .05, we will accept
null hypothesis i.e. there is no significant relationship in between the investment holding with
change in gender. Males and females are equally Equity Analysis averse & conservative in
holding the investment.
B. Sample- Alternate Hypothesis:
1.1: Family income in respect of Equity Analysis bearing capacity

X7 * X9 Crosstabulation
Count
X9 Total
NO NOMINAL MODERATE HIGHER
EQUITY EQUITY EQUITY EQUITY
ANALY ANALYSIS ANALYSIS ANALYSIS
SIS
X7 < 5LAKH 21 17 4 1 43
5-15 LAKH 15 23 10 1 49
15-25 0 0 4 0 4
LAKH
Total 36 40 18 2 96

Chi-Square Tests
Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 21.932a 6 .001

Likelihood Ratio 18.359 6 .005
Linear-by-Linear Association 9.013 1 .003

N of Valid Cases 96

a. 6 cells (50.0%) have expected count less than 5. The minimum expected count is .08.

Interpretation :-As the chi-square shows the value of P is higher than .05, we will accept
alternative hypothesis i.e. there is a significant relationship in between the expectation from
investment with change in family income. Investors are balanced & aggressive related to
taking Equity Analysis in stock market.
1.2: Education in respect of holding time period for investment

X4 * X10 Crosstabulation
Count
X10 Total
DAY WEEK MONTH YEAR
X4 UNDER GRADUATE 1 1 3 10 15

GRADUATE 14 15 5 17 51
POST GRADUATE 6 7 9 4 26
PH.D. 1 2 1 0 4
Total 22 25 18 31 96

Chi-Square Tests
Value Df Asymp. Sig. (2-sided)

Pearson Chi-Square 20.330a 9 .016

Likelihood Ratio 22.004 9 .009
Linear-by-Linear Association 6.992 1 .008

N of Valid Cases 96

a. 9 cells (56.3%) have expected count less than 5. The minimum expected count is .75.

Interpretation :- As the chi-square shows the value of P is higher than .05, we will accept
null hypothesis i.e. there is a significant relationship in between the investment holding with
change in education. Investors are Equity Analysis averse & conservative related to holding
the investment.

As from the above crosstabs the table- 1 is drawn in reference with the chi- square values and
the significance values on different parameters and fills the box with yellow color who gives
the best alternative hypothesis value. Then after interpret that value which is come under that
yellow box and show their cross tabs.
 TABLE-1
S.No. QUESTIONS GENDER OCCUPATION AGE EDUCATION

Pearson Significa Pearson Signific Pearson signifi Pearson Significance

chi-square nce chi- ance chi- cance chi-
square square square

1 What do you expect 0.797 0.85 9.131 0.425 8.871 0.449 8.854 0.451
when you invest?

2 How long do you 0.656 0.883 5.669 0.773 4.203 0.898 20.330 0.016
normally hold
investments?

3 If your investments 6.934 0.139 13.707 0.32 16.943 0.152 11.253 0.507
were to fall in value by
15 per cent over a one-
year period, you will

4 You are ready 6.266 0.18 17.361 0.137 9.682 0.644 28.133 0.005
for limited losses in
expectation of higher
long-term returns?

5 I am willing to 3.639 0.457 7.389 0.831 14.934 0.245 10.855 0.541

experience the ups and
downs of the market
for the potential of
greater returns.

6 My main concern is 2.453 0.653 13.083 0.363 9.164 0.689 9.537 0.657
security; keeping
money safe is more
important than earning
high returns.

7 I am fairly experienced 0.570 0.966 7.997 0.785 16.547 0.167 11.665 0.473
in investment.

8 I am very secure 2.561 0.634 9.092 0.695 5.942 0.919 3.830 0.986
related to my
future income (such as
from salary, pension or
other investments)?
 CHAPTER – V
FINDINGS, SUGGESTIONS AND CONCLUSION
 FINDINGS
 Most of the respondents are ready to take either no Equity Analysis or nominal Equity
Analysis while doing the investment.
 Most of the respondents are generally go for longer time horizon.
 There is a situation of investment fall by 15% then most of the respondents are neither
conservative nor aggressive.
 Most of the respondents are agree to take limited losses in expectation of higher
returns.
 Most of the respondents are give their opinion in the favor of experiencing the ups
and downs of the market.
 Most of the respondents are agreeing with this there main concern is safety.
 Most of the respondents are said that they are not sure about fairly experienced in
investment.
 Most of the respondents are in favors of they are very much concern with security
related to future income.
 This study shows most of the respondents either go for conservative Equity Analysis
profile or balanced Equity Analysis profile.
 SUGGESTIONS
a) After a close scrutiny of economy industries and companies in considering the Equity
Analysis, it may be recommended that international economy might affects the firms export
prospects, the price competition it faces from competitors, or the profit it makes from abroad.
Certainly, despite the fact that the economies of most countries are linked with the global
economy, there is a considerable variation in the economic performance across the different
countries at any time; investor should properly analyze both globally and domestically before
taking investment decision.
b) The investor also should consider the budget decision and present years forecast of
different sectors. Comparisons between the different is also necessary because of companies
perform well when potential opportunity exists for industry.
c) Even though the industry may perform well, the companies in the that particular industry
may suffer form lack of ability or any other factor, one should scrutinize the performance of
the company, in considering importantly, sales growth, leverages, betas, P/E ratio and market
to book ratios
d) It may be pointed out that to make out generalization in this regard is not very easy. This is
because of share do not always retaining their luster. There are several instances of quite blue
chip of yester years now languishing in a colorless state. It is the personal intuition, sensing
patterns of behavior, there is always something unknown and undeserved. So the points to be
noted are

e) However, there are such things as a final answer to security values, a dozens experts arrive
at twelve different conclusions. Market values are fixed only in part by balance sheet and
income statement; much more by hopes and fears of humanity; by greed, by act of god, where
the investor should carefully consider the emotional factors influence the market.
 CONCLUSIONS
Now at the final the following facts emerge from the study security analysis for selecting
appropriate security through analyzing economy and industry
When come to the economic factors the global economies are getting interrelated, the Indian
market will no longer be limited to domestic economic situation.
as far as the Indian economy is concerned, the GDP is the primary factor, has the positive
correlation with the Sensex, which directly affects the overall market and followed by other
factor., showing good sign for the stock market.
Agricultural growth rate and the monsoon both has direct influence on stock market and
responsible for the economy to become prospers. It has the correlation 0.50 with the Sensex
indicates the stock market would be prospers only when the agriculture grow well.
the exchange rate has the positive correlation with the Sensex. In the resent trend the value of
the rupee is going up, shows positive signs to stock market, as Sensex also associated with
that movement.
When compare the ratios of Computer and software, Cement, Automobile and
Pharmaceutical industries, the computer and software industry provides handsome return to
the investors.
Except the computer and software industry, all other industry’s short-term solvency position
is not good. Of course, the remaining ratios also far behind compared Computer and
Software industry.