“FACTORS AFFECTING THE STOCK MARKET”

AT
INDIA INFOLINE LIMITED

MASTER OF BUSINESS ADMINISTRATION

By
SHAIK KHAJA QUMRUDDIN
(029-08-176)

Dept of Business Management

Amjad Ali Khan College of business administration
Osmania University Hyderabad
2008-10
 DECLARATION

I undersigned hereby declare that the project work entitled “FACTORS

AFFECTING THE STOCK MARKET” is an original and bonafide work

undertaken by me.

In partial fulfillment of the requirement for the award of the degree of Master
of Business Administration (M.B.A) of Osmania University, AMJAD ALI
KHAN COLLEGE OF BUSINESS ADMINISTRATION.

The empirical findings in the report are based on the data collected by myself
while preparing the report.

Place: Hyderabad
Date:

SHAIK KHAJA QUMRUDDIN

Hall Ticket No: 029-08-176

 CERTIFICATE

This is to certify that the project work entitled “FACTORS

AFFECTING THE STOCK MARKET” is being submitted in partial

fulfillment for the award of degree of Master of Business Administration to

Osmania University, a record of bonafide is carried out by SHAIK KHAJA
QUMRUDDIN, under my supervision.

The result in this project has not been submitted to any other university or
institution for award of any degree or diploma.

Prof. SHEHBAZ AHMED

DIRECTOR
 CERTIFICATE

This is to certify that the project work entitled “FACTORS

AFFECTING THE STOCK MARKET” is being submitted in partial

fulfillment for the award of degree of Master of Business Administration to

Osmania University, a record of bonafide is carried out by SHAIK KHAJA
QUMRUDDIN, under my supervision.
The result in this project has not been submitted to any other university or
institution for award of any degree or diploma.

MOHAMMED YOUNUS
(Asst. Prof. AAKCBA)
Internal Guide
 ABSTRACT

The main aim of the project is to understand what are the factors
affecting the stock market and how those factors affecting the stock prices.

It is a common knowledge that money has to be invested wisely, but

when and how to invest is the question. In this era of Information Technology,
there are many sites providing the information regarding various current
issues, expectations regarding the future announcements. Utilizing the various
pre announcements, news creates profits in the stock market or it may create
losses when expectations become wrong.

The study is restricted to 7 important factors which are affecting the

stock price movement. There are some unknown factors also affecting the
stock prices. The data used in this study is both primary and secondary in
nature.

The conclusion drawn from the study is that Psychological factors and
Expectations affect the prices of the stocks in the stock market. Pre
Announcements and news are the fuel for fluctuations in the stock prices.

Investors are advised not to believe the pre announcements, which may
lead to losses. Investors should analyze the market situations, if they have no
knowledge they need to take the suggestion from the Financial Analysts and
then make investment decision.
 ACKNOWLEDGEMENET

I wish to thank all the people who are associated with me in

completion of this project report with their constant encouragement and

strong motivation.

I would like to express my gratitude towards my faculty guide and

MOHAMMED YOUNUS Asst. Prof. of AAKCBA who gave me constant

encouragement and support from choosing the topic to till the completion of

project, in knowing some issues of my topic (Sub Prime Crisis). Further, he

always helped me in various queries and motivated me for the completion of

the project successfully.

In particular I am very grateful to Mr. Shiva Kameshwararao (RM)

and the staff of India Infoline Limited, who allowed me to do my project and

made me understand how the various factors effecting to the stock market.

Thanking you
 TABLE OF CONTENTS

CONTENTS PAGE NO

LIST OF TABLES I

LIST OF FIGURES II

INTRODUCTION 1

REVIEW OF LITERATURE 19

COMPANY PROFILE 34

DATA ANALYSIS &INTERPRETATION 41-58

SUMMARY AND CONCLUSIONS 59 & 60

BIBLIOGRAPHY 61