Religare Learning

Investors behavior in equity market
1. EXECUTIVE SUMMARY
RELIGARE is a premier integrated financial service provider and is ranked among the top in the country in all its business segments. It provides services over 75,000 individual investors in various capacities and provides investor services to over 500 corporate.
The present project titled A study on Investors attitude towards equity market was conducted on behalf of RELIGARE at Bangalore. This study was aimed to know the pre investment and post investment behavior of the investor in the equity market.
The research methodology adopted in this research work is descriptive type. The secondary data are obtained from newspapers, text books, websites and various journals. The research aimed to make an attempt to understand the behavior of the investors towards the equity market and its products.
In the research we have been using techniques such has Technical analysis and fundamental analysis to help them decide on the stock investment patterns. They also continuously monitor their investments and take decisions whether to continue to hold or dispose off their stocks.
The survival and viability of broking companies largely depends on the efforts made them to minimize its cost and enhance operational efficiency. RELIGARE can achieve the top players position in the market provided it concentrate more on quality of services and attracting more investors. By doing so it will be in a position to perform better and also meet the requirement of its investors.
Page 1 JSSATE, DEPT OF MANAGEMENT, BANGALORE.
PART-A
1.
INDUSTRY PROFILE
History of the Stock Market

Stock markets refer to a market place where investors can buy and sell stocks. The price at which each buying and selling transaction takes is determined by the market forces (i.e. demand and supply for the particular stock. Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200 year ago. The earliest records of security dealing in India are meager and obscure. By 1830s business on corporate stocks and shares in Bank and Cotton presses took place in Bombay. Though the trading list was broader in 1839, there were only half a dozen brokers recognized by banks and merchants during 1840 and 1850. The 1850s witnessed a rapid development of commercial enterprise and brokerage business attracted many men into the field and by 1860 the number of brokers increased into 60. In 1860-61 the American Civil War broke out and cotton supply from United States of Europe was stopped; thus, the Share Mania in India begun. The number of brokers increased to about 200 to 250. However, at the end of the American Civil War, in 1865, a disastrous slump began ( for example, Bank of Bombay Share which had touched Rs 2850 could only be sold at Rs.87 ). At the end of the American Civil war, the brokers who thrived out of Civil War in 1874, found a place in a street (now appropriate called as Dalal Street where they would conveniently assemble and transact business. In 1887, they formally established in Bombay, the Native Share and Stock Brokers association (which is alternatively known as The Stock Exchange). In 1895, the Stock Exchange acquired a premise in the same street and it was inaugurated in 1899. Thus, the Stock Exchange at Bombay was consolidated.
Thus in the same way, gradually with the passage of time number of exchange were increased and at currently it reached to the figure of 24 stock exchange. A person holding assets (securities/funds), either to meet his liquidity needs or to reshuffle his holding in response to change in his perception about risk and returns of the assets, decides to buy or sell the securities. He selects a broker and instructs him to place buy/sell order on an exchange. The order is converted to a trade as soon as it finds a matching sell/buy order. At the end of the trade cycle, the trades are netted to determine the obligation of the trading members securities/funds as per settlement cycle. Buyers/ seller delivers funds/securities and receives securities /fund as per settlement cycle. Buyer/seller delivers funds /securities and receives securities/funds and acquires ownership of the securities. A securities transaction cycle is presented above. Just because of this Transaction cycle, the whole business of securities and stock broking, the business of Online Stock broking/ Online Trading/E-Broking has emerged.
Milestone of the Indian stock market:

One of the oldest stock markets in Asia, the Indian Stock Markets has a 200 years old history. Post Independence Scenario: 18 century East India company was the dominant institution and by end of the century business in its loan securities gained full momentum 1880s Business on corporate stocks and shares in bank and cotton presses started in Bombay. Trading list by the end of 1839got broader 1840s Recognition from banks and merchants to about half a dozen brokers. 1850s Rapid development of commercial enterprise saw brokerage business attracting more people into the business 1860-61 The American civil war broke out which caused a stoppage of cotton supply from united state of America. Marking the beginning of the share mania in India
1862-63 The number of brokers increased to about 200 to 250 1865 A disastrous slump began at the end of the American civil war (as an example. Bank of Bombay share which had touched Rs2850 could only be sold at Rs 87) Pre-Independence Scenario - Establishment of Different Stock Exchanges 1874s with rapidly developing share trading business, brokers used together at a street
(now well known as Dalal Street) for the purpose of transacting business. 1875s The native share and stock brokers association (also known as the Bombay Stock Exchange) was established in Bombay 1880s Development of cotton mills industry and setup of many others 1894s Established of the Ahmadabad share and stock brokers association. 1880-90s Sharp increase in share prices of jute industries in 1870s was followed by a boom in tea stocks and coal. 1908s The Calcutta stock exchange association was formed. 1920s Madras witnessed boom and business at The madras stock exchange was transacted with 100 brokers. 1923 When recession followed number of brokers comes down to 3 and exchange was closed down. 1934 Establishment of the Lahore stock exchange 1936 Merge of the Lahore stock exchange with the Punjab stock exchange 1940 Uttar Pradesh stock exchange Ltd and Nagpur stock exchange Ltd was established 1944 Establihment of The Hyderabad stock exchange Ltd 1947 Delhi stock and share brokers association Ltd and The Delhi stock and share exchange Ltd were established and later on merged into The Delhi stock exchange association Ltd. The depression witnessed after the Independance led to closure of a lot of exchanges in the country. Lahore Stock Exchange was closed down after the partition of India, and later on merged with the Delhi Stock Exchange. Bangalore Stock Exchange Limited was registered in 1957 and got recognition only by 1963. Most of the other
Exchanges were in a miserable state till 1957 when they applied for recognition under Securities Contracts (Regulations) Act, 1956. The Exchanges that were recognized under the Act were: 1. Bombay 3. Calcutta 5. Madras 7. Ahmadabad 2. Delhi 4. Hyderabad 6. Bangalore 8. Indore
Many more stock exchanges were established during 1980's, namely: 1. Cochin Stock Exchange (1980) 2. Uttar Pradesh Stock Exchange Association Limited (at Kanpur, 1982) 3. Pune Stock Exchange Limited (1982) 4. Ludhiana Stock Exchange Association Limited (1983) 5. Gauhati Stock Exchange Limited (1984) 6. Kanara Stock Exchange Limited (at Mangalore, 1985) At present, there are twenty one recognized stock exchanges in India which does not include the Over The Counter Exchange of India Limited (OTCEI) and the National Stock Exchange of India Limited (NSEIL). Government policies during 1980's also played a vital role in the development of the Indian Stock Markets. Indian stock exchange allows a member broker to perform following activities: 1. Act as an agent, 2. Buy and sell securities for his clients and charge commission for the same, 3. Act as a trader or dealer as a principal,
4. Buy and sell securities on his own account and risk.
TYPES OF STOCK MARKET 1. National stock exchange

2. Bombay stock exchange

1.
National stock exchange:

In order to lift the Indian stock market trading system on par with the international
standards. On the basis of the recommendations of high powered Pherwani Committee, the National Stock Exchange was incorporated in 1992 by Industrial Development Bank of India, Industrial Credit and Investment Corporation of India, Industrial Finance Corporation of India, all Insurance Corporations, selected commercial banks and others. NSE provides exposure to investors in two types of markets, namely:

Wholesale debt market. Capital market.
Wholesale Debt Market - Similar to money market operations, debt market operations involve institutional investors and corporate bodies entering into transactions of high value in financial instruments like treasury bills, government securities, commercial papers etc. Trading at NSE 1. Fully automated screen-based trading mechanism 2. Strictly follows the principle of an order-driven market 3. Trading members are linked through a communication network 4. This network allows them to execute trade from their offices 5. The prices at which the buyer and seller are willing to transact will appear on the screen 6. When the prices match the transaction will be completed 7. A confirmation slip will be printed at the office of the trading member Advantages of trading at NSE 1. Integrated network for trading in stock market of India 2. Fully automated screen based system that provides higher degree of transparency 3. Investors can transact from any part of the country at uniform prices
4. Greater functional efficiency supported by totally computerized network
2. Bombay stock exchange:

The Bombay Stock Exchange is the oldest exchange in Asia. It traces its history to the 1850s, when 4 Gujarati and 1 Parsi stockbroker would gather under banyan trees in front of Mumbai's Town Hall. The location of these meetings changed many times, as the number of brokers constantly increased. The group eventually moved to Dalal Street in 1874 and in 1875 became an official organization known as 'The Native Share & Stock Brokers Association'. In 1956, the BSE became the first stock exchange to be recognized by the Indian Government under the Securities Contracts Regulation Act. The Bombay Stock Exchange developed the BSE Sensex in 1986, giving the BSE a means to measure overall performance of the exchange. In 2000 the BSE used this index to open its derivatives market, trading Sensex futures contracts. The development of Sensex options along with equity derivatives followed in 2001 and 2002, expanding the BSE's trading platform. Historically an open outcry floor trading exchange, the Bombay Stock Exchange switched to an electronic trading system in 1995. It took the exchange only fifty days to make this transition. This automated, screen-based trading platform called BSE On-line trading (BOLT) currently has a capacity of 8 million orders per day. The BSE has also introduced the world's first centralized exchange-based internet trading system, BSEWEBx.co.in to enable investors anywhere in the world to trade on the BSE platform. The BSE is currently housed in Phiroze Jeejeebhoy Towers at Dalal Street, Fort area.
Benefits of Bombay stock exchange in equity dealing:
Financing: One of the primary advantages of listing on the BSE is the ease of financing by raising additional capital in the capital markets.
Media attention: Listing on the BSE is accompanied by particularly significant attention from the local media, according to experience, in comparison with listing on other exchanges;
Liquidity: In an international comparison, the BSE offers considerable market liquidity;
Heightened consumer awareness and confidence: Presence on the BSE improves consumer awareness and confidence and improves company marketability and recognition;
Visibility: Listing on the BSE ensures greater visibility in comparison with listing on larger foreign stock markets;
Index membership and the associated additional demand for equity: A company that might be considered mid-cap at best on a foreign market could be considered a leading equity on the BSE, and as such would likely be included in the BUX, the BSEs main equity index. This is in contrast to listing on a foreign market, where the conditions for inclusion in a main index usually cannot be fulfilled. Considering that domestic institutional investors typically invest pooled funds into a portfolio with the same weighting as the BUX index, this undoubtedly creates additional demand for the shares of the company;
High ratio of foreign investors: Foreign investors have a strong presence on the Hungarian stock market, representing about 70-80% of the BSEs equity capitalisation and its turnover. Foreigners can therefore trade shares on the BSE as easily as on any other large foreign market;
Allowances in equity listing fees: The BSE waives all listing fees in case of equity listings. As an additional incentive, the BSE also waives listing maintenance fees in the quarter when the equity listing takes place and in the quarter that follows.
2. COMPANY PROFILE
A. Background and inception of the company
Our Company was originally incorporated as Vajreshwari Cosmetics Private Limited on January 30, 1984.For details on our Promoters, see the sections titled Our Promoters and Promoter Group and Our Management beginning on pages 105 and 92, respectively the name of our Company was subsequently changed to Religare Enterprises Private Limited pursuant. To a special resolution of our shareholders dated January 10, 2006. The fresh certificate of incorporation consequent to the change of name was granted to our Company on January 31, 2006, by the Registrar of Companies, Punjab, and Himachal Pradesh & Chandigarh at Jalandhar. The status of our Company was changed to a public limited company by a special resolution of the members dated July 14, 2006. The fresh certificate of incorporation consequent to the change of name was granted to our Company on August 11, 2006, by the Registrar of Companies, NCT at New Delhi. At the time of incorporation, the main object of our Company was to purchase, sell, import, export, manufacture, pack, replace or otherwise deal in all types of tooth paste, tooth brush, face powder, face cream and other cosmetics. Religare is an emerging markets financial services group with a presence across Asia, Africa, Middle East, Europe, and the Americas. In India, Religares largest market, the group offers a wide array of products and services including broking, insurance, asset management, lending solutions, investment banking and wealth management. With
10,000-plus employees across multiple geographies, Religare serves over a million clients, including corporate and institutions, high net worth families and individuals, and retail investors. Trading in Equities with Religare truly empowers you for your investment needs. We ensure you have a superlative trading experience through A highly process driven, diligent approach Powerful Research & Analytics and One of the "best-in-class" dealing rooms Further, Religare also has one of the largest retail networks.
The Religare Edge

Pan India footprint Powerful research and analytics supported by a pool of highly skilled research analysts Ethical business practices Offline/Online delivery models Single window for all investments needs through your unique Customer Relationship Number
B. NATURE OF BUSINESS CARRIED

Religare Enterprises Ltd. is an India based financial services company with operations around the globe. Commonly referred to as Religare, the company offers a range of financial services through its group companies. The services offered include broking, insurance, asset management, lending solutions, investment banking and wealth management. Serving over a million clients, Religare has around 15 billion dollars of assets under management.
The Religare group of companies includes Religare Capital Markets, Religare Securities, Religare Broking, Religare Online, Religare Invest, Religare Finmart, Religare Insurance, Religare Health Insurance, Aegon Religare, Religare Mutual Funds, Religare Macquire, and Milestone Religare.
Timeline of the company 2006

Religare inks pact with AEGON, set up AMC, enter insurance Religare gets licence for merchant banking
2007

Religare seeks mandate to invest in realty Religare launches new online trading portal IndusInd Bank ties up with Religare, to offer online trading Religare plans IPO of 11.36 cr Religare Arts initiative to help promote galleries, artists
2008
Religare to sell stake in NBFC arm for Rs 500 cr Religare Finvest gets top ICRA rating Religare-Aegon AMC gets in-principle nod Indias first regulated film fund set to make entry, Religare in pact with Vistaar on Rs. 200 crore Religare to buy UK's Hichens for Rs 396 cr
2009

Religare Bags LIPPER-STARMINE Award Religare MF announces dividend Aegon Religare entering into health insurance space Religare, NTT Europe launch online trading
2010

Religare in pact with Bank of Maharashtra for online trading Religare takes Northgate stake in investment push Religare Voyages plans to tap air-ambulance segmet
C. Vision, Mission and Quality Policy
Vision To be India's first Multinational providing complete financial services solution across the globe.
MISSION
Providing integrated financial care driven by the relationship of trust and Confidence.
QUALITY POLICY
We are committed to being the leader in providing world class product and
services which exceed the expectation of our customers achieved by teamwork and a process of continuous improvement.
D. Products and Service Profile

RELIGARE PRODUCT DETAILS: Equity Gold Derivatives Mutual fund Commodity Trading
SERVICES OF THE COMPANY Depositary services Marginal financing Mutual fund distribution Portfolio Management Scheme Stock trading.
E. Area of Operation Global /National/Regional GLOBAL New York South Africa United kingdom Japan Brazil
Dubai
Sri lanka
Singapore
NATIONAL Tamil Nadu Kolkata Gujarat Ahmadabad
New Delhi Mumbai Pune Chennai Regional Bangalore Mysore
Hubli
Mangalore
Belgum
F. Ownership Pattern
Central Leadership Team Board of Directors - Religare Enterprises Limited
Mr. Sunil Godhwani Chairman and Managing Director, Religare Enterprises Limited
Mr. Sunil Godhwani Chairman and Managing Director Mr Shachindra Nath Group CEO Mr. Anil Saxena Group CFO Mr. Harpal Singh Non Executive Director Mr. Deepak Ramchand Sabnani Independent Director Ms. Kathryn Matthews Independent Director Mr. Padam Bahl Independent Director Mr. J. W. Balani Independent Director
Mr. Shachindra Nath Group CEO, Religare Enterprises Limited
Mr. Anil Saxena Group CFO, Religare Enterprises Limited
G. Competitors Information
ICICI WEB TRADE LTD. (ICICIdirect.com): ICICIdirect.com was the first entrant e-broking. ICICIdirect.com provides the 3-in-1
to the users which ties in their saving bank account and their Demat account to their brokerage account electronically. This integration ensures that money is transferred to/from their bank account and the shares are transferred from/to their Demat account automatically without writing any cheques or transfer instructions while carrying out their trades in shares.ICICIdirect.com has the option of trading in share in cash, margin or spot segment. An investor can also invest in 14 Mutual Funds through their trading account.
India Info line Ltd:
5paisa is the trade name of India Infoline Securities Private Limited (5paisa), member of National Stock Exchange and The stock Exchange, Mumbai. 5paisa is a wholly owned subsidiary of India Infoline Ltd, Indias leading and most popular finance and investment portal. 5paisa has emerged as one of leading player e-broking space in India. KOTAK SECURITES LIMITED (kotakstreet.com):
Kotak Securities Ltd, a strategic joint venture between Kotak Mahindra Bank and Goldmen Sachs (holding 25%-one of the worlds leading investment banks and brokerage firms) is Indias leading stock broking house with a market share Of 5 -6 % Kotak Securities Ltd. Has been largest in IPO distribution It was ranked number one in 2003-04 as Book Running Lead Manager in public equity offering by PRIME Database. It has also won the Best Equity Award from Finance Asia April 2004.
India Bulls:
India bulls are Indias leading retail financial services company with 77 locations spread across 64 cities. Its size and strong balance sheet allows providing varied products and services at very attractive prices, our over 750 Client Relationship Manager are dedicated to serving your unique needs. India bulls is lead by highly regarded management team that has invested crores of rupees into a world class Infrastructure that provides real-time services & 24/7 access to all information and products. The India bulls Professional Network MOTILAL OSWAL SECURITIES LTD. (MOSt): One of the top-3 stock-broking in India, with a dominant position in both institutional and retail broking, most is amongst the best-capitalized firms in the broking industry in terms of net worth. MOSt was founded in 1987 as a small sub-broking unit, with just two people running the show. Focus on customer- first - attitude, ethical and transparent business practices, respect for professionalism, research- based value investing and implementation of cutting-edge technology have enabled it to blossom into a thousand-member team.
HDFC SECURITIES LTD :
HDFCsec is a brand brought to you by HDFC Securities Ltd, which has been promoted by the HDFC Bank & HDFC with the objective of providing the diverse customer base of the HDFC Group and other investors a capability to transact in the Stock Exchange & other financial market transaction. The services comprises online buying & selling of equity shares on the national stock exchange (NSE).Buying & selling of select corporate debt and government securities on the NSE would be introduced in a subsequent phase.
UTI SECURITIES LTD: (UTISEL) UTI Securities Ltd was incorporated on June 24, 1994 by Unit Trust of India as a
100% subsidiary and on the repealing of the UTI Act, the capital is now held by the Administrator of the Specified Undertaking of Unit Trust of India (ASUUTI). UTI Securities has been working as an independent professional entity for providing financial intermediary and advisory services to its corporate and retail clientele. IDBI Capital Market Services Ltd: IDBI Capital is a leading Indian securities firm offering a complete suite of products & services to individual, institutional and corporate clients.IDBI Capital Market Services Ltd. (IDBI Capital), a wholly owned subsidiary of Industrial Development Bank of India (IDBI), is a leading Indian securities firm, offering a complete suite of products and services to individual, institutional and corporate clients.
H. Infrastructural Facilities
Offices The company has offices located at prime location in Mumbai, New Delhi, Kolkatta and Chennai. The offices are centrally located to cater to the requirements of institutional and
17 corporate clients and retail clients, and for ease of operation due to proximity to stock exchange and banks. Today we have more than 170 branches all over India. intend to install CRM facilities, besides this it is implementing interactive client information dissemination system which enable clients to view there latest client information on web. It has an installed multiple WAN to interconnect the branches to communicate on real time basis. The company is equipped with most advanced system to facilitate smooth functioning of Operations. It has installed its major application on IBM machine and uses latest state of art. Communications The company has its disposal, an efficient network of advance communication system and
I. Achievement and Award

Religare Wins Award For Brand Excellence In Banking And Financial
Services. Religare won the award for Brand excellence in the Banking and Financial services category at The World Brand Congress 2009 held in Mumbai on 4th and 5th Nov 2009. Religare emerged as a winner amongst other corporate giants nominated for the same category.
Religare securities equity broking -subsidiary has won an award from D&B for
the "best broking house-with a global presence"

At the recently concluded CEO CLUBS INTERNATIONAL AWARDS, Mr.
Sunil Godhwani was conferred the CEO of the year Award. The award ceremony was held at The Grand Midwest Tower Hotel, Dubai where Mr. Amarnath (President, GCC Operations) collected the award on behalf of Mr. Godhwani.
Religare Securities Limited received the LIPPER-STARMINE broker award
for "Earnings Estimates in Midcap Research for 2008". The Lipper - StarMine Awards
organized by Thomson Reuters, for Asset Management and sell-side broking Companies in India. The awards recognize analysts who are more accurate than their peers in forecasting earnings, awarding credit to those who demonstrate an ability to make accurate estimates earlier than their peers.
Religare Enterprises Limited wins Excellence Award sponsored by Institute of
Economic Studies at Indian Habitat Centre.

Religare online emerged as Indias most user friendly website. In a consumer
research conducted by leading independent online research and advisory organization JuxtConsult, the lucid user interface of Religare online emerged as overall winner in the Online Financial Info category.
J. Work flow model (End to End)
With our unique Business model, we have different services to suit different people. From Remisers to Trainee, Entrepreneurs to Associates and Agents, we have services providing everyone with numerous benefits and in keep growing in a profitable collaboration. Remisiers: Partner with Religare, start your own venture and leave it to us to support you with essential business requisites. We will provide the necessary infrastructure, technical and
marketing support, operation backing and research, while you can back this whole system with your clients. As a remisier, following benefits are provided: No commercial space required. No start-up capital needed. Marketing support is provided. Technological support to associates. Access to all financial products.
Agents: Ideal programmer suited to those who want to work freelancers, for people who wants to work for themselves and possess that grit and self confidence coupled with business acumen. Its a perfect platform to realize your dreams. Benefits: No commercial space required. No start-up capital needed. Marketing support is provided. Technological support to associates. Access to all financial products
Trainee: We at Religare have designed a unique programme to mould the great entrepreneurs of tomorrow. We provide you with a complete trading in all the financial aspects, business development, and back office operations, marketing and research, trading, Associate: Religare treats their associates as their own providing innumerable benefits and a strong support.
Operation Support: Centralized real time monitoring and control system with in built system driven alerts and controls to support branch and client level exposures and margin factors.
Back office Support: User friendly back office support system, with real time updates for clients as well as associates.
IT and Connectivity Support: Access to world class technology. Product Support: Opportunity to offer wide range of products. Research Support: In-house research team that caters to all clients for premium quality research & advisory support.
Detailed Research Reports and Market tips. Real time access to research analysis and reports via Web portal.
K.FUTURE GROWTH;
200000PLUS Retail customers being serviced through centralized call centre /web solution 150branches/semi branches servicing affluent/aggressive traders through highly skilled financial advisors Their target is to have 350 branches and 1000business partners in 300 cities of India Strong advisory role through fundamental and technical research
3. MCKENSYS 7S FRAME WORK
1 . A G STR TE Y:
In
modern times the word strategy has found its way into the management field. In the
context of a business concern, strategy indicates specific program of action for achieving the organization objectives by employing the firms resources efficiently and economically. It involves preparing oneself for meeting unforeseen factor. It is also concerned with meeting the challenges posed by the policies and actions of other competitors in the market.
2.STRUCTURE:
Organization Structure: National sales marketing Head
Vice President-Investment Assistant Vice President-Investment Zonal Manager Investment Senior Investment Manager Manager Investment
Vice President Sales Assistant Vice president-Sales Regional Sales-Head Branch Manager Team Leader
Relationship Manager Associated Relationship Manager Asst Relationship Manager Relationship Executive
2.
SYSTEM:
RELIGARE covers the entire spectrum of financial services such as Stock broking,
Depository Participants, Distribution of financial products - mutual funds, bonds, fixed deposit, equities, Insurance Broking, Commodities Broking, Personal Finance Advisory Services, Merchant Banking & Corporate Finance, placement of equity, IPOs.
3.
STYLE:
An activity like forecasting and planning are made by top level managers. Major
policies and plans are made by top management and it is implemented and administered by employees. In the organization the style of informal communication and meetings with employees has created workers to a friendly environment.
4.
STAFF:
The staff of Mckinsys 7S framework includes the human resource management, rewards and recognition. The main strength of India Religare is its research teams efficiency and team work of the employees.Staff of Religare as follows: Regional manager Branch Manager Sales Manager
5.
SKILLS:
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JSSATE, DEPT OF MANAGEMENT, BANGALORE.
The managers and workers in each department are skilled to the extent of functions they perform. Directors of the company are skilled in every activities and disciplines of organization. A 1600 team of highly qualified and dedicated professionals drawn from the best of academic and professional backgrounds are committed to maintaining high levels of client service delivery. This has propelled RELIGARE to a position among the top distributors for equity and debt issues with an estimated market share of 15% in terms of applications mobilized, besides being established as the leading procurer in all public issues.
6.
SHARED VALUES:
Shared values refer to a set of values & aspirations that goes beyond the conventional
formal statement of corporate objectives. Culture of an organization is usually determined by some of the value benefits and working practices that exist within an organization operational standard.
4. SWOT analysis
A SWOT analysis focuses on the internal and external environments, examining strengths and weaknesses in the internal environment and opportunities and threats in the external environment STRENGTHS Services Services like online trading facility, institutional and domestic broking, customized research reports with almost 80% efficiency etc give Religare an edge over its competitors. SMS alerts, Softer, intangible features like imagery, equity driving preference. Relationship managers
The company has a team of relationship managers who are dedicated to the service of clients. This RMs takes care of clients even smallest problem and makes efforts to solve them through their expertise. They also help their clients to invest their wealth in the market. Distribution Network Religare with almost 150 branches beefed up by comprehensive online research, advice and transaction services. In near future expect to make 200000+ retail customers being serviced through centralized call centre / web solution. Marketing Religare (previously Fortis securities) is a veteran equities solutions company with loads of experience in the Indian stock markets. Religare does not claim expertise in too many things.. So when we says that investing in stocks should not be confused with trading in stocks or a portfolio-based 78 strategy is better than betting on a single horse, it is something that is spoken with years of focused learning and experience in the stock markets. Products Companys product line is a basket of financial services offered to its clients. Its a all product single shop for investors. Here we offer Along with Equity, Mutual funds, personal loans, PMS, Corporate Finance and Investment banking etc to our customers. Our products are customized according to individual demand and preference WEAKNESS Customer Satisfaction As far as customer satisfaction goes Religare has to tighten its Boots. The company does not have enough Relationship managers to cater to huge customer base. The account opening takes 2 working days whereas an India bull takes half the time for this purpose.
Branding Though the company has a efficient products but large part of investment interested
population does not know the company. The most basic expectation for a trader or investor when one begins trading is that one must get timely delivery of shares and proceeds from sale of shares. Competition from banks and Niche Players Most of the banks due to good branding have the faith of the customers of their banking database. So they enjoy the liberty of huge database and customers find it more reliable to trade their rather than with a unknown broker. OPPORTUNITIES
The external environment analysis may reveal certain new opportunities for profit and growth. Ever-increasing market After the NSE brought the screen based trading system stock markets are now more secured which has attracted lot of retail investors and the demand is increasing day by day. This has resulted in improved liquidity and heavy volumes on transactions. Religare is one of the early80 entrants here. As to how much it will roar and how swift it can swoop on the market, the future alone can answer such queries. Improving Technology In country like India technology is always improving which gives the company a chance to keep on improving their product with time whereas for the small players like local brokers it will be difficult to keep the same pace as the changing technology. Also with SEBI lying down some strict guidelines small brokers are finding it harder to retain the customers with no research department and small capital. Unfulfilled needs of the customers
With so many competitors offering their products in the market but no one is able to completely satisfy the customers. Some have the problem of lack of information or some were scared of volatility of the stock markets. Religare has the opportunity to tap this unsatisfied set of Customers and to make hold in the market. Education Level The education level in the country is improving year after year as far as technology goes. With that the understanding of the stock market is also increasing and a lot of retail investors are steeping in the markets which is being shown by increasing volumes, transactions and indices THREATS New Competitors
A lot of new competitors are trying to enter the market in this bullish run to taste the flavor of this cherry. This is creating a lot of competition for large players like Religare and it is creating little confusion in the minds of the customers about the services provided by the broker. Also many banking firms are entering into the market with huge investment. Competitors like ICICI kotak, hdfc, 5-paisa etc. are posing a lot of threats to the company. Market Uncertainty, political instability & unfavorable economic conditions
5. ANALYSIS OF FINANCIAL STATEMENT A.

CR=
Current ratio:
current assets Current liabilities YEAR CURRENT ASSET CURRENT LAIBILITIES CURRENT RATIO (%)
Page 30
2009 2010
496.81 87.85
5.10 179.54
97.41 0.49
B.
Debt equity ratio
DER=
Long term debt Share holders fund
YEAR 2009 2010
TOTAL DEBT 00 22.22
EQUITY SHARE CAPITAL 00 2561.06
DEBT-EQUITY RATIO (%) 00 0.01
C.
Operating ratio:
Operating profit Sales
Operating Ratio =
YEAR 2009
OPERATING PROFIT -3.53
TOTAL NET SALES OPERATING 12.55 RATIO (%) -28
2010
60.64
101.50
59.70
D.
=
Net profit margin ratio

Net profit Sales
YEAR 2009 2010
NET PROFIT -19.96 55.52
TOTAL NET SALES 12.55 101.50
NET PROFIT MARGIN RATIO (%) -159.04 54.70
6. Learning experience
I took up this work during my advanced level courses .As they say, that most of the learning happens outside the classroom, so the internship project was such that learning experience where in we got the opportunity to apply knowledge into real world of whatever we had learned so far in classrooms. In fact the main objective of this training was to help students to adapt to different work conditions, be flexible and creative while
working in the organization. I have tried to fulfill the same in my summer project. I am sure this will help the students to become better managers for tomorrow. RELIGARE LTD is a reputed name in India .It is growing enormously as a stock broking firm .This company offers many products and services to its clients. This company also helps the investors by advising them as to where to invest their money. It was really a great opportunity given to me by the institution to work in the organization. I have learnt a lot as to how RELIGARE LTD carried out its work so efficiently and also its business. It was really a good experience for me working during this tenure. I am really glad that I have learnt so much in detail about its business, product and services. This training program really did confidence a world of good and now I can say that my knowledge has improved, over these few months. I would like to thank the entire team of RELIGARE LTD who helped me throughout the training. We can summarize of our learning experience as how to behave in corporate world. How to work under pressure. How to handle team. How to get worked done from team. To maximize the market share of the organization and how to interact with the customer it is known.
PART-B
a. GENERAL INTRODUCTION STATMENT OF THE PROBLEM
The presents study titled A study on investors attitude towards equity market is aimed at knowing the pre investment and post investment behavior of the investors in the equity market. As the equity market is the volatile segment of the stock market and as the investors behavior changes from time to time according to market conditions, studying the behavior of the investors before investing and after investing in equity shares becomes essential. The investors behavior is influenced by various factors like discussions before the investments, base for decision, source of information, bullish or bearish market etc. OBJECTIVES OF THE STUDY
To understand the investors behaviour in investing Equity market To understand the upward and downward movement and volatility of the stock price To understand the behaviour pattern of business class with respect to investment
NEED FOR THE STUDY As we know that now a days stock market is gaining importance, the turnover of equity trading is increasing day by day. The study was undertaken on behalf religare Ltd. This study helps to know the investors behaviour, awareness level about derivatives and factors considered by the investor while selecting the brokers.
SCOPE OF THE STUDY
The scope indicates the boundaries in which the project was undertaken to a great extent.The project titled Investors attitude towards equity market was based on the information given by the investors of data collection or analysis. RELIGARE LTD at
Bangalore. 50 investors of RELIGARE limited . at RELIGARE were contacted during the month January-Feb of 2010-11 for the purposes of collecting the information. This study makes an attempt to understand the behaviour of the investors in the equity market. METHODOLOGY
The methodology is the plan, structure and strategy of the investigation process that sets out to obtain answers to the study. The methodology adopted for collecting information is Type of data Primary data: This data was collected with help of the questionnaire to know the various factors influencing the investments, investment preferences of the investors, the profile of the investors based on their education background, occupation, income levels and savings and such other factor are used. Secondary data: This secondary data was collected from websites and various journals to know the various investment avenues and their strengths and their weakness. DATA COLLECTION: A sample size of 50 investors was selected randomly from, Religare Ltd Bangalore. The respondents were interviewed by giving structured questionnaire and proper guidance was given to fill it. The primary data was collected for the purpose of analysis and interpretation. The Analysis has done on the basis of data collected and the results are showed in Graphs and Tables SAMPLING UNIT: The investors of religare Ltd Bangalore were the respondents, which included Businessmen, Retired employees, Students, Agriculturists etc.
SAMPLING SIZE: 50 Respondents. SAMPLING PROCEDURE: Convenience sampling.
LIMITATIONS OF THE STUDY The present kind is bound to have certain limitations. The present study was an empirical work presented in deceptive manner. The objective of the study may well be this kind of analysis, attempt has been made to provide comprehensive conceptual analysis. The study was undertaken to collect all the possible information, which is very essential for the study. Despite the sincere efforts to collect accurate information.
Time constraint, respondents hesitation and their busy schedule. The time span for survey was short and hence only major aspects are considered in this research study.
B. ANALYSIS AND INTERPRETATION:
Data are facts, figures and relevant materials, past and present, serving as bases for study of an analysis. Without an analysis with actual data no specific inferences can be drawn from the questions under study. Inferences based on the imagination or guesswork cannot provide correct answers to research study. The relevant, adequate and reliable data determines the quality of finding of the study. The data was collected from investors Religare portfolio Ltd Bangalore. Respondents were contacted at their work place, home and at Religare portfolio Ltd. Office All the respondents were given guidance to fill the questionnaire. The study is titled as A study on Investors attitude towards equity market. After collecting the primary data, it was analyzed to find out the result of the study. The data collected from the questionnaire were coded and decoded to analyze the data. The data are analyzed and the results were disclosed in the form of percentages, tables and graphs.
Organized money market:

Indian financial system consists of money market and capital market. The money market has two components the organized and unorganized. The organized market is dominated by commercial banks. The other major participants are the Reserve Bank of India, if Insurance sCorporation, General Insurance Corporation, and Unit Trust of India, Securities Trading Corporation of India Ltd, Discount and Finance House of India, other primary dealers, commercial banks and mutual funds, the core of the money market is the inter bank call money market where by short-term money borrowing/lending is effected to manage temporary liquidity mismatches. The Reserve Bank of India occupies a strategic position of managing market liquidity through open market operations of government securities, access to its accommodation, cost (interst rates), availability of credit and other monetary management tools. Normally, monetary assets of short term nature, generally less than one year, are dealt in this market. Un-Organized money market:
Despite rapid expansion of the organized money market through a large network of banking institutions that have extended their reach even to the rural areas, there is still an active unorganized market. It consists of indigenous bankers and money lenders in the unorganized market; there is no clear demarcation between short-term and longterm finance and even between the purposes of finance. The unorganized sector continues to provide finance for trade as well as personal consumption. The inability of the poor to meet the creditworthiness requirements of the banking sectors make them take recourse to the institution that still remain outside the regulatory frame work of banking. But this market shrinking. The secondary market consists of twenty stock exchanges. The secondary market provides a trading place for the securities already issued, to be bought and sold. It also provides liquidity to the initial buyers in the primary market to re-offer the securities to any interested buyers at any price, if mutually accepted. The financial market in India was highly segmented until the initiation of reforms in 1992-93 on account of a variety of regulation and administered prices including barriers to entry. There from process was initiated with the establishment of Securities and Exchange Board of India (SEBI).
1. Respondents Age Profile:

The researcher is interested in age profile because the aged people are more conservative and they are taken low risk but younger the age normally people are more aggressive and the take more risk.
Table 6.1: Age Profile of the Respondent
Age
Below 20 years 21 to 30 years 31 to 40 years 41 years and above
No of Responses
1 11 18 20
Percent (%)
2 22 36 40
Total
50
Graph no: 1
100
4 5 4 0 3 5 3 0 2 5 2 0 1 5 1 0 5 0
4 0 3 6
2 2
t d n p s e R f o %
2 B lo 2 y a e w 0 e rs 2 t 3 ya 1 o 0 e rs Ae g 3 t 4 ya 1 o 0 e rs 4 ya ad 1 e rs n aoe bv
INFERANCE:
As per table no.6.1 and graph 5.1 it is found that 40% of the respondents were in age group of 41 year and above and 36% were 31 to 40 years, remaining respondents were in age group of 21 to 30 years and below 30 years having 22% and 2% respectively
2. Respondents Gender Profile:

The researcher is interested in gender profile because it helps in knowing whether investment in equity depends on the gender or not Table 6.2 Gender Profile of the Respondents Gender Male Female No of Responses 45 5 Percent (%) 90 10
Total
50
Graph no: 2
100
1% 0
M le a F mle e a 9% 0
INFERENCE: As per table 6.2 and Graph no.2 it is found that most of the respondents in the research were male respondent i.e. 90% and remaining 10% were female respondents.
3. Respondent Education Qualification Profile:

The researcher is interested in respondents qualification because generally the percentage of educated people is more who invest in the Equity Shares. Table 6.3: Respondent Education Qualifications Qualification Under Graduate Graduate Post Graduate Others No of Responses 6 34 9 1 Percent 12 68 18 2
Total
50
Graph no: 3
100
INFERENCE: As per table no. 6.3 and Graph no.3 it is found that the most of the respondents were graduates i.e. 68% and 18% were post graduate and remaining was under graduates.
4. Respondents Occupation:
The researcher is interested in occupation because occupation plays a very important role in investment because the income level and savings depends on the occupation of respondents.
Table 6.4: Respondents Occupation Profile Occupation Student Salaried Business Agriculturist Professional Retired Total No of Responses 3 13 18 4 5 7 50
Graph no: 4
Percent 6 26 36 8 10 14 100
INFERENCE:
As per table no.6.4 and Graph no4 it is found that most of the respondents were having business as occupation i.e. 36% and 26% of the respondents were salaried, the next most respondent were retired peoples.
5. Respondents Monthly Income:

Income is one Factor, which has bearing over the expenses, saving and purchasing power so the researcher is very interested in knowing respondents monthly income. Table 6.5: Respondent Monthly Income Monthly Income Below 100000 100000 to 300000 300000 to 500000 500000 to 800000 800000 & Above No of Responses 11 24 8 4 3 Percent 22 48 16 8 6
Total
50
Graph no: 5
100
INFERENCE: As per table no.6.5 and Graph no 5 it is found that most of the respondents were having monthly income of 100000 to 300000 i.e. 48% and 22% of the respondents were belongs
to below 100000 to income category and remaining 16%, 8% and 6% were belongs to the income category of Rs 300000 to 500000, Rs500000 to 800000 and above Rs 800000 respectively.
Section -B 1 Knowledge Level:

Knowledge is the one thing which gives immense confidence to any act. The knowledge about shares is very essential and it plays a very important role, impulsive buying of shares are some times referred as gambling and its not an investment. Table 6.6: Knowledge Level of the Respondent Knowledge Level Very Good Good Average Poor Very Poor No of Responses 9 18 23 0 0 Percent 18 36 46 0 0
Total
50
Graph no:6
100
INFERANCE:
As per table no. 6.6 and Graph no 6 it is found that most of the respondents having average knowledge about the stock i.e. 46% and 36% were having good Knowledge and 18% were having very good Knowledge about the stock share.
2.
Percentage of Amount Invested in Different Avenues:

Table 6.7: Percentage of Amount Invested in Different Avenues Invested Avenues Mutual Funds Debenture Postal Schemes Real Estate Fixed Deposits Insurance Products Gold Mixed Above Others No.of Responses 25 5 12 1 8 4 3 1 1 Percentage 30 10 24 2 16 8 6 2 2
Total
50
Graph no: 7
100
INFERENCE:
As per table no.6.7 and Graph no 7 it is found that 30% of the respondents were invested their wealth in mutual funds, 24% of the respondents were invested their wealth in postal schemes and 16% of the respondents were invested their wealth in fixed deposits. And 10% of debenture, 8% of insurance product, and 6% of gold and remaining 2% of investors are real estate, mixed of above, other respectively
3.
Respondents Make Discussion While Making Investment:

Table6.8: With Whom the Respondents Make Discussion While Making
Investment. Discussion With Friends Brokers/Sub brokers No Discussion Colleagues Family Members On my Own No. of Responses 10 18 0 7 6 9 Percentage 20 36 0 14 12 18
Total
50
Graph no: 8
100
INFERENCE:
As per table no.6.8 and Graph no 8 it is found that 20% of the respondents done discussion with their friends, 36% with brokers, 18% with their own analysis and 12% done some discussion with their family members and 14% made discussion with colleagues while investing in equity.
4. Respondents investment in stock market

Table 6.9: Reason for Investment in Equity
Particulars
No of Responses
Percent (%)
Less than 100000 100000 to 500000 500000 to 1000000 1000000 & above Total
22 14 10 4 50 Graph no: 9
44 28 20 8 100
INFERENCE: As per table no.6.9and graph no 9 it is found that 44 % of the respondents have invested in between below Rs 100000 and 28% and 20% investors have invested under the category
of 100000 to 500000 and 500000 to 1000000. And remaining 8% of the investors have made their investment above 1000000.
5. Respondents use information available for taking investment decision.

Particulars
No of Responses
Percent (%)
Television Internet Newspaper/magazines Research reports Company published information Total Graph no: 10
15 18 9 4 4 50
30 36 18 8 8 100
INFERENCE:
As per table no.6.10 and graph no 10 it is found that 30% and 36% of the respondents have used television and internet for taking decision making and 18 and 8 % of the respondents have used newspapers, research respectively reports and published information
6.Respondents investment decision

Particulars Only fundamental analysis Only technical analysis Both fundamental and technical analysis Neither fundamental nor technical analysis Total Graph no: 11
No of 12 Response 15 18 5 50
Percent 24 (%) 30 36 10 100
INFERENCE: As per table no.6.11 and graph no 11 it is found that 24 % and 30% of the respondents have used fundamental and technical analysis and 36% have used both the analysis and remaining 10% used neither of the analysis.
7. Reason for Investment in Equity:

Particulars
Safety of Invested Capital Capital Appreciation Liquidity Regular Return
No of Responses
13 17 15 5
Percent
26 34 30 10
Total
Graph no: 12
50
100
INFERANCE: As per table no. 6.12 and graph no 12, it is found that 26% feels that factor is to be considered was safety of invested capital, and 34% respondents feels it is capital appreciation and 30% are feels liquidity and 10% of regular return is very important factor to be considered at the of investment in equity.
8. Time Horizon: Time is the precious thing. Time of the investment depends on the
objective of the investment. If the objective is for further usage obviously the time horizon of the investment would be little large. Table 6.13: Time Horizon of Investment
Time Horizon
Less than 6 month 6 months to 1 year 1 to 3 years 3 to 5 years Above 5 years
No of Responses
10 23 11 4 2
Percent
20 46 22 8 4
Total
50
Graph no:13
100
INFERENCE: As per table no. 6.13 and Graph no 13 it is found that 20% of less than 6 month, 46% of the respondents time horizon is 6 months to 1 year and 22% respondents time horizon is 1 to 3 years and only 4% of the respondents were having time horizon of above 5 years.
9. Equity Shares are Fair and Appropriate Way of Mobilizing Funds by companies:
Table 6.14: Opinion Regarding the statement Equity Shares are Fair and Appropriate Way of Mobilizing Funds by Companies
Options
Low Risk Liquidity Good Return Assured Return High Return & High Risk
No of Responses
18 8 16 6 2
Percent
36 16 32 12 4
Total
50
Graph no: 14
100
Page 52
INFERANCE: As per table no. 6.14 and Graph 14 it is found that most of the respondents i.e. 36% of low risk, 16% of liquidity, 32% of good return, 12% of assured return and only 4% of high risk and return Respectively.
10. Frequency of Trading: Frequency of Trading depends on the investors

occupation, perception about the market, market movements, and time horizon of the investment. Table 6.15: Frequency Investors Trade in Equity Shares.
Frequency
Daily Weekly Monthly Once in 6 months Once in a year
No of Responses
16 22 8 4 0
Percent
32 44 16 8 0
Total
50
Graph no: 15
100
INFERENCE: As per table no. 6.15and Graph no 15 it is found that most of the respondents trade weekly and daily i.e. 44% and 32% respectively and only 16% of the respondents makes day trading.
11. Price Movements:

Price movement is the very critical factor in stock market, what investor that may not happens because price is purely depends on the demand and supply of the securities. Sometimes price may go up and suddenly it may fall. Table 6.16: Investors Behaviour if Price Falls by More Than 20%
Particulars
Sell the security out of fear Buy some more security as it has become cheap Convert it into long term investments
No of Responses
16 19 15
Percent
32 38 30
Total
50
100
Graph no: 16
INFERENCE: As per table no. 6.16 and Graph no 16 it is found that 38% of the respondents were buy some more security as it has become cheap and 32% of the respondents were sell the security out of fear and 30% of the respondents take the position of converting it into long term investments.
12. Investors Lost Their Money in Bearish Market

Table 6.17: Investors Lost Their Money in Bearish Market.
Particulars
Yes No
No of Responses
21 29
Percent
42 58
Total
50
Graph no:17
100
INFERENCE: As per table no. 6.17 and Graph no 17 it is found that 58% of the respondents were not lost money because of the bearish market and 42% of the respondents were lost money because of their false expectation.
13. Respondents buy the shares at the peak of Bull Run and lost money:
Table 6.18: Buying the shares at peak of Bull Run and lost money
Particulars
Yes No
No of Responses
26 24
Percent
52 48
Total
50
100
Page 56
Graph no: 18
INFERANCE: As per table no. 6.18 and Graph no18 it is found that 52% of the respondents were aware about futures and options contracts and only 48% were not aware about Future & Option contracts.
14. Respondent the number of securities in investors portfolio:

Table 6.19: The number of securities in investors portfolio
Particulars
Less than 5 5 to 10 10 to 20 Above 20
No of Responses
17 14 10 9
Percent (%)
34 28 20 18 Page 57
Total
50
Graph no: 19
100
INFERANCE: As per table no. 6.19 and Graph no19 it is found that 34% of the investors securities less than 5% and 28%, 20% and 8% of investors belonging 5 to 10, 10-20 and above 20.
15. Respondent managing portfolio

Table 6.20:Managing in port folio
Particulars
Self Self with Advice from professionals ffpppppppppppprofessiona
No of Responses
8 16
Percent (%)
16 32 Page 58
Though brokers portfolio management services
26
52
Total
50
Graph no: 20
100
INFERANCE: As per table no. 6.20 and Graph no 20 it is found that around 16% of the investor manage their own portfolio and remaining 32% of investors take the advice from professionals and 52% of the investors go to brokers.
16. Respondent in future performance of stock market

Table 6.21:Future performance of stock market
Particulars
No of Responses
Percent (%)
Page 59
Very good Good Average Poor Very poor
19 7 5 7 12
38 14 10 14 24
Total
50
Graph no: 21
100
INFERANCE: As per table no. 6.21 and Graph no 21 it is found that 38% of the respondents known very good about future performance of the stock and 14%, 10% of respondents average in knowing about future stock performance and remaining 14% of the respondents poor and another 14% are very poor.
17. Respondent Expected return from Equity market in 5 years

Table 6.22:Return in Equity market in 5 years
Particulars
Less than 8% P.A 8% to 15% P.A 15% to 25% P.A 25% and above
No of Responses
22 14 9 5
Percent (%)
44 28 18 10
Total
GRAPH NO: 22
50
100
INFERANCE: As per table no. 6.22 and Graph no 22 it is found that 44% is the expected return from 5 years is less than 8% P.A and 28% and 18% would get the return of 8% to 15% and 10% would get the return of above 25%.
18. Respondent while selecting the Brokers/Sub brokers

Table 6.23:While selecting the broker /Sub brokers
Particulars
Brokerage charge Quality of service Demat account faculty Availability of Research Courteous staff reports
No of Responses
11 23 7 6 3
Percent (%)
22 46 14 12 6
Total
50
Graph no: 23
100
INFERANCE: As per table no. 6.23 and Graph no 23 it is found that 22% of the respondents were consider brokerage charge and 46% of investor consider quality of service and 14% and ! 2% of investors consider demat account faculty and availability of research and remaining 6% go with courteous staff reports.
19. Respondent about industries would investor like to investment

Table 6.24:Industry would like to investment
Particulars
Pharmaceuticals IT Industries Construction Textiles If any other please specify
No of Responses
31 10 5 3 1
Percent (%)
62 20 10 6 2
Total
50
Graph no: 24
100
INFERENCE: As per table no. 6.24and Graph no 24 it is found that 62% of the respondents trade in Pharmaceutical 20% and 10% of investor trade in IT and construction and remaining 6% and 2% of investors trade in textiles and others.
7. FINDINGS AND RECOMMENDATION
FINDINGS:
Majority of investors in stock market are looking for long term investment Majority of young generation who are employed is entering into this market but they are not aware about Equity market
56% of the respondents decision was based both on Fundamental and technical analysis. Most of the Investors of RELIGARE LTD were well informed about the economy, industry, and company and also about the past variations in share prices.
88% of the respondents did not take decision based on beliefs like horoscope, Astrologers advice and good days time as per belief. Therefore it is understood that most of the investors of RELIGARE LTD were not dependent on the beliefs for taking investment decisions.
The level of knowledge of all the investors was good and average. This shows that all the investors in RELIGARE PORTFOLIO had sufficient knowledge about the shares.
12% of the investors were under graduates and rest were graduates and postgraduates hence majority of the investors of RELIGARE PORTFOLIO were well educated.
52% of the respondents was aware about derivative contracts and a majority of 36% of the users does speculation by using derivatives.
48% of the respondents had monthly income in the range of Rs100000 to Rs300000 64% of the respondents felt that equity shares are fair and appropriate way of mobilizing funds by companies. 90% of the respondents are of the opinion that equity shares should not be banned for individual investors.
32% revealed their opinion as to they sell the securities as a cause of fear, 38% preferred to buy it as it was cheaper, 30% said it was time to better sit quiet, so findings can be taken as to when ever there is 20% fall in price of share, around 62% are to react for a major change in decision and rest 38% were to sit quiet.
34% of the respondents earned a return of 8% to 15% and 25% of the respondents earned more than 25% return so it is clear that investors of the RELIGARE PORTFOLIO have been getting reasonable return from equity investment.
58% respondents felt that performance of future stock market will be good so it shows that majority of investors of RELIGARE PORTFOLIO were bullish about the stock market.
About 26% of the respondents felt that the quality of service provided by the stock broker is the most important factor and 25% of the respondents felt that brokerage charge is the most important factor in selecting a broker.
There was no respondent who did not collect information prior investing in Equity market. All the investors had collected information through various source like friends, brokers/sub brokers, newspapers and magazines etc. as a source of information to make investment.
66% of the respondents managed their portfolio by their own analysis whereas 28% consulted the professionals before taking decisions.
Page 65
RECOMMENDATION
According to the study majority of investors in stockmarket are looking for long term investment but it is recommended to all investors to invest also in short term investment since it results in higher returns
According to the study thorough knowledge about stock market is necessary for all the investors in order to reduce the risk which is associated with their investment
48% of the respondents were not aware about the derivatives. 52% of the respondents were aware of it. Therefore RELIGARE PORTFOLIO can arrange some awareness program on derivate so that proper purpose of future and options contracts can be achieved.
As this study shows that the investors should also know the current situation of stock market and he should analyse the various factors affecting to stock market before they invest.
CONCULSION:
The level of knowledge of all investors in RELIGARE PORTFOLIO is good and above the average level. The major factors that influence the investors to investment in equity are capital appreciation and liquidity. The above analysis shown that 26% of investors select the brokers on the basis of quality of service and brokerage charge. The average trading cycle of the investors is one week. It is found that 58% of investors did not lost money in bearish market and from analysis we can also see that 54% of investors did not lost money even in Bull Run market .The data analysis shows that 52% of investors are aware about derivatives market (Futures and options), out of 26 respondents only 18 (i.e. 70%) of investors feel derivatives is a good tools for speculation.
ANNEXURE
BALANCE SHEET
Mar ' 10 SOURCES OF FUNDS Owner's Fund Equity Share Capital Share Application Money Preference Share Capital Reserves & Surplus Loan Funds Secured Loans Unsecured Loans Total 0.00 22.22 2,583.28 0.00 0.00 2,518.64 127.81 0.18 25.00 2,408.07 76.29 1,800.16 25.00 617.19 Mar ' 09
USES OF FUNDS Fixed Assets Gross Block Less : Revaluation Reserve Less : Accumulated Depreciation 25.67 0.00 4.54 3.73 0.00 0.36
Net Block Capital Work-in-progress
21.12 0.00
3.37 0.01
Investments
2,653.85
2,023.55
Net Current Assets Current Assets, Loans & Advances Less : Current Liabilities & Provisions Total Net Current Assets Miscellaneous expenses not written Total 87.85 179.54 -91.69 0.00 2,583.28 496.81 5.10 491.71 0.00 2,518.64
PROFIT AND LOSS A/C

Mar ' 10 Income : Operating Income 101.59 12.55 Mar ' 09
Expenses Material Consumed Manufacturing Expenses Personnel Expenses Selling Expenses 0.00 0.00 25.62 7.31 0.00 0.00 9.88 0.90
Adminstrative Expenses Expenses Capitalised
47.72 -39.70
12.44 -7.14
Cost Of Sales
40.95
16.08
Operating Profit
60.64
-3.53
Other Recurring Income
33.48
14.89
Adjusted PBDIT
94.12
11.37
Financial Expenses Depreciation Other Write offs
21.96 4.27 0.00
21.04 0.31 0.00
Adjusted PBT
67.89
-9.99
Tax Charges
12.80
5.93
Adjusted PAT Non Recurring Items Other Non Cash adjustments
55.09 0.43 0.00
-15.91 0.00 -0.05
Reported Net Profit
55.52
-15.96
Earnigs Before Appropriation
49.01
-6.51
Equity Dividend Preference Dividend Dividend Tax Retained Earnings
25.56 4.84 0.00 18.61
0.00 0.00 0.00 -6.51
BIBILOGRAPTHY: REFERENCES
Stock exchange websites such as nseindia.com, bseindia.com, etc.
nasdaq.com
Standard reference textbooks ex: dalal street, 2004,2007,2006,2005 edition I.M.Pandey (2005) Financial Management ninth edition, vikas publishing house pvt.ltd
Punithavathi Pandian security analysis and portfolio management. Prasanna Chandra (2005), Financial Management Theory and Practice sixth edition, New Delhi, Tata Mcraw Hill.
Grinblatmark and matti keloharju (2001) what makes investor trade journal of finance vol.56.
ICFAI journals of investor behavior. Securities Industry Association. Annual SIA Investor Survey: Investors Attitudes toward the Securities Industry. Harris Interactive (11/2003), Wirthlin Worldwide(11/2004)
QUESTIONNAIRE
Dear respondents, I am, YASHAVANTHA.H.M. Pursuing MBA IV semester at JSSATE. Bangalore, currently undergoing training and has taken a study entitled A STUDY ON INVESTORS BEHAVIOUR IN EQUITY MARKET. I kindly request you to spare your to spare your valuable time to go through and fill in questionnaire. The information given by you will be used only for academic purpose and data would be confidential. Thanking you, Yashavantha.H.M. IV Semester Section A-Personal Information 1. Name: .. 2. Age: a. Below 20 years c. 31 to 40 years 3. Sex: a. Male 4. Qualification: a. Under Graduate c. Post Graduate [ ] [ ] b. graduate d. Others [ ] [ ]
[ ] [ ]
b. 21 to 31 years d. 41 years and above
[ ] [ ]
[ ]
b. Female
[ ]
5. Occupation: a. Student c. Self Employer e. Professional [ ] [ ] [ ] b. Salaried d. Agriculturist f. House wife [ ] [ ] [ ]
If any other, please Specify..
6. Monthly Income a. 100000to300000 c. 500000 to800000 Section B 1. How do you rate your knowledge about Stocks and shares? a. Very good c. average e. Very poor [ ] [ ] [ ] b. Good d. poor [ ] [ ] [ ] [ ] b.300000 to 500000 d.800000 and more [ ] [ ]
2. Which of the following investment avenues you have invested other than stock? a. Mutual Funds c. Debentures e. Postal Schemes g. Real Estate i. If others please Specify: .. 3. With whom you generally discuss before taking investment decision? a. Friends [ ] b. colleagues [ ]
[ ] [ ] [ ] [ ]
b. Fixed Deposits f. Gold
[ ] [ ]
d. Insurance product [ ] h. Mixed of Above [ ]
c. Brokers/Sub brokers e. No Discussion 4. The amount of investment in stock market? a. Less than 1lakh c.5lakhsto10lakhs
[ ] [ ]
d. Family members f. On my own
[ ] [ ]
[ ] [ ]
b.1lakhto5lakhs
[ ]
d.10lakhsand above [ ]
5. Do you use the information available from the following source for taking Investment Decision? a. Television [ ] b. Internet [ ] [ ] c. Newspaper/Magazines [ ] d. Research reports [ ]
e. company published Information 6. How do you base your Investment Decision? a. Only Fundamental Analysis b. Only Technical Analysis c. Both Fundamental and Technical
[ ] [ ] [ ]
d. Neither Fundamental nor Technical Analysis [ ] 7. The factors that you would consider at the time Investment in Equity a. Safety of invested Capital c. Liquidity/Marketability 8. What is your time horizon in Equity Investment? a. Less than 6 months c. 1 to 3 years e. Above 5 years 9. Why do you prefer above option? a. Low Risk [ ] b. Liquidity [ ]
[ ] [ ]
b .capital appreciation [ ] d. Regular return [ ]
[ ] [ ] [ ]
b. 6 month 1 year [ ] c. 3 to 5 years [ ]
c. Good Returns
[ ]
d. Assured returns
[ ]
e. High risk and High returns [ ] 10. How frequently you trade in Equity Shares generally? a. Daily c. Monthly e. Once in a year [ ] [ ] [ ] b. Weekly [ ] d. Once in 6 months [ ]
11. Soon after you buy a share if the price falls by more than 20% what would you do generally? a. Sell the security out of Fear b. Buy some more security as it has become cheap(square off) c. convert into long term investment 12. Did you ever sold many shares out of fear when the market turned very Bearish for a long time and lost money? a. Yes [ ] b. No [ ] [ ] [ ] [ ]
13. Did you ever purchase many shares at the peak of Bull Run and lost money when the market crashed? a. Yes [ ] b. No [ ]
14. Generally what would be the number of securities in your portfolio? a. Less than 5 C.10 to 20 15. Who is managing you Portfolio? a. Self b. Self with Advice from professionals c. Through brokers Portfolio Management Services (PMS)
[ ] [ ]
b. 5 to 10 d. above 20 companies
[ ] [ ]
[ ] [ ] [ ]
Page 76
16. What is your view about future performance of stock market? a. Very Good b. Average e. Very poor From now? a. Less than 8% p.a [ ] c. 15% to 25% p.a [ ] b. 8% to 15% p.a d. above 25% p.a [ ] [ ] [ ] [ ] [ ] b. Good d. Poor [ ] [ ]
17. What is your Expected return from Equity investment over 5 years
18. What factors do you consider while selecting the Brokers/ Sub- Brokers? a. Brokerage charge c. Brokers Brand [ ] [ ] b. Quality of service d. none of above [ ] [ ]
e. If any other specify. 19. Which industries would u like to investment? a. Pharmaceuticals c. Construction [ ] [ ] b. IT industries d. Textiles [ ] [ ]
e. If any other please specify..

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Investors behavior in equity market

Page 1 JSSATE, DEPT OF MANAGEMENT, BANGALORE.

Investors behavior in equity market

History of the Stock Market

Investors behavior in equity market

Milestone of the Indian stock market:

Investors behavior in equity market

Investors behavior in equity market

TYPES OF STOCK MARKET 1. National stock exchange

Investors behavior in equity market

2. Bombay stock exchange

National stock exchange:

Wholesale debt market. Capital market.

Investors behavior in equity market

4. Greater functional efficiency supported by totally computerized network

2. Bombay stock exchange:

Benefits of Bombay stock exchange in equity dealing:

Page 7 JSSATE, DEPT OF MANAGEMENT, BANGALORE.

Investors behavior in equity market

Liquidity: In an international comparison, the BSE offers considerable market liquidity;

Page 8 JSSATE, DEPT OF MANAGEMENT, BANGALORE.

Investors behavior in equity market

Investors behavior in equity market

The Religare Edge

Page 10 JSSATE, DEPT OF MANAGEMENT, BANGALORE.

Investors behavior in equity market

B. NATURE OF BUSINESS CARRIED

Timeline of the company 2006

Investors behavior in equity market

Page 12 JSSATE, DEPT OF MANAGEMENT, BANGALORE.

Investors behavior in equity market

C. Vision, Mission and Quality Policy

Page 13 JSSATE, DEPT OF MANAGEMENT, BANGALORE.

Investors behavior in equity market

D. Products and Service Profile

Page 14 JSSATE, DEPT OF MANAGEMENT, BANGALORE.

Investors behavior in equity market

NATIONAL Tamil Nadu Kolkata Gujarat Ahmadabad

New Delhi Mumbai Pune Chennai Regional Bangalore Mysore

Page 15 JSSATE, DEPT OF MANAGEMENT, BANGALORE.

Investors behavior in equity market

Mr. Shachindra Nath Group CEO, Religare Enterprises Limited

Mr. Anil Saxena Group CFO, Religare Enterprises Limited

Page 16 JSSATE, DEPT OF MANAGEMENT, BANGALORE.

Investors behavior in equity market

India Info line Ltd:

Investors behavior in equity market

HDFC SECURITIES LTD :

Page 18 JSSATE, DEPT OF MANAGEMENT, BANGALORE.

Investors behavior in equity market

Page 19 JSSATE, DEPT OF MANAGEMENT, BANGALORE.

Investors behavior in equity market

I. Achievement and Award

the "best broking house-with a global presence"

Investors behavior in equity market

Economic Studies at Indian Habitat Centre.

J. Work flow model (End to End)

Investors behavior in equity market

Investors behavior in equity market

Page 23 JSSATE, DEPT OF MANAGEMENT, BANGALORE.

Investors behavior in equity market

3. MCKENSYS 7S FRAME WORK

Investors behavior in equity market