A

PROJECT REPORT ON

NATIONAL STOCK EXCHANGE

WITH REFERENCE TO
ADITYA BIRLA PVT. LTD.

SUBMITTED BY
SYED HANEEF
H.T.NO: 1211-22-684-071
PROJECT SUBMITTED IN PARTIAL FULFILLMENT
FOR THE AWARD OF THE DEGREE
BACHELOR OF BUSINESS ADMINISTRATION

OSMANIA UNIVERSITY,
HYDERABAD.
ST. PAUL’S DEGREE & PG COLLEGE
(AFFILIATED TO OSMANIA UNIVERSITY)
HIMAYATNAGAR, HYDERABAD.
(2024-2025)
 ST. PAUL’S DEGREE & PG COLLEGE
HIMAYATNAGAR, HYDERABAD. PH. NO: 27602533
WEBSITE: www.st-pauls.co.in, EMAIL ID: [email protected]: 040-27602533

CERTIFICATE

This is to certify that SYED HANEEF is a bonafide student of BBA IIIYEAR of this
institution with Hall Ticket No: 1211-22-684-071 for this Academic year 2024-2025. He
has submitted a project on NATIONAL STOCK EXCHANGE from the organization
ADITYA BIRLA PVT. LTD. under the supervision of MS. ASRA SULTANA

DATE: PRINCIPAL
 ST. PAUL’S DEGREE & PG COLLEGE
HIMAYATNAGAR, HYDERABAD. PH. NO: 27602533
WEBSITE: www.st-pauls.co.in, EMAIL ID: [email protected]: 040-27602533

CERTIFICATE

This is to certify that SYED HANEEF of BBA III YEAR with Hall Ticket NO: 1211-
22-684-071 for the academic year 2024-2025 has completed a project on NATIONAL
STOCK EXCHANGE under the supervision of MS. ASRA SULTANA.

DATE: SIGNATURE OF THE GUIDE

 ST. PAUL’S DEGREE & PG COLLEGE
HIMAYATNAGAR, HYDERABAD. PH. NO: 27602533
WEBSITE: www.st-pauls.co.in, EMAIL ID: [email protected] ph: 04027602533

CERTIFICATE

This is to certify that the project is submitted by SYED HANEEF bearing Hall Ticket
No 1211-22-684-071 of BBA III YEAR on the project NATIONAL STOCK
EXCHANGE during the academic year 2024-2025.

External Examiner Internal Examiner

 DECLARATION
I SYED HANEEF, student of Department of Management here by declare that this
project report titled NATIONAL STOCK EXCHANGE from ADITYA BIRLA PVT.
LTD. submitted by me to the department of Management, OU, Hyderabad, is a

bonafide work undertaken by me and it is not submitted to any other University

or Institution for the award of any degree / certificate or published any time
before.

Date: Signature of the student

Name: SYED HANEEF

 ACKNOWLEDGEMENT

As a student of St. Paul’s Degree and P.G College affiliated to Osmania

University, I express my heartfelt gratitude to the ADITYA BIRLA PVT. LTD. for
providing the necessary information related to my project.

I also express my sincere thankfulness to Sri. SIRAJUDDIN, Hon. Secretary &

correspondent of St. Paul’s Degree & P. G College and Sri. M.HAYA
GREEVA CHARY, Principal St. Paul’s Degree & P.G College for providing me
the opportunity and complete cooperation, and all the necessary infrastructure to
complete my project.

Last but not the least it is my pleasure to have a dedicated faculty and guide for
my project, their whole-hearted co-operation helped in completing the project in
time and acquiring the knowledge.

SYED HANEEF
1211-22-684-071
 ABSTRACT

Participants in the stock market range from small individual stock investors to large hedge fund
traders, who can be based anywhere in the world. Their orders usually end up with a professional at
a stock exchange, who executes the order of buying or selling.

From experience it is known that investors may 'temporarily' move financial prices away from their
long term aggregate price 'trends'. (Positive or up trends are referred to as bull markets; negative or
down trends are referred to as bear markets). Over-reactions may occur—so that excessive optimism
(euphoria) may drive prices unduly high or excessive pessimism may drive prices unduly low.
Economists continue to debate whether financial markets are 'generally' efficient.
According to one interpretation of the efficient-market hypothesis (EMH), only changes in
fundamental factors, such as the outlook for margins, profits or dividends, ought to affect share
prices beyond the short term, where random 'noise' in the system may prevail. (But this largely
theoretic academic viewpoint—known as 'hard' EMH—also predicts that little or no trading should
take place, contrary to fact, since prices are already at or near equilibrium, The 'hard' efficient-
market hypothesis is sorely tested and does not explain the cause of events such as the stock market
crash in 1987, when the Dow Jones index plummeted 22.6 percent—the largest-ever one-day fall in
the United States.

This event demonstrated that share prices can fall dramatically even though, to this day, it is
impossible to fix a generally agreed upon definite cause: a thorough search failed to detect any
'reasonable' development that might have accounted for the crash. (But note that such events are
predicted to occur strictly by chance, although very rarely.)
 TABLE OF CONTENTS

CHAPTER NO CONTENTS PAGE NUMBER

I INTRODUCTION 1-6

II REVIEW OF LITERATURE 7-15

III COMPANY PROFILE 16-30

IV DATA ANALYSIS AND 31-44

INTERPRETATION

V CONCLUSION & 45-48

SUGGESTIONS

BIBLIOGRAPHY 49-50

APPENDIX 51-53
 CHAPTER-I
INTRODUCTION

1
 INTRODUCTION

The Indian Equity Market is also known as Indian share market or Indian stock market. The
Indian market of equities is transacted on the basis of two major stock indices, National Stock
Exchange of India Ltd. (NSE) and The Bombay Stock Exchange (BSE). Indian Equity Market at
present is a lucrative field for the investors and investing in Indian stocks are profitable for not
only the long and medium-term investors, but also the position traders, short-term swing traders
and for intra-day traders. In terms of market capitalization, there are over 5000 companies in the
BSE chart list. Generally the bigger companies are listed with the NSE and the BSE, but there is
the OTCEI or the Over the Counter Exchange of India, which lists the medium and small sized
companies. There is the SEBI or the Securities and Exchange Board of India which supervises the
functioning of the stock markets in India.

The growing financial capital markets of India being encouraged by domestic and foreign
investments is becoming a profitable business more with each day. If all the economic parameters
are unchanged Indian Equity Market will be conducive for the growth of private equities and this
will lead to an overall improvement in the Indian economy.

THE INDIAN CAPITAL MARKET

The function of the financial market is to facilitate the transfer of funds from surplus sectors
(lenders) to deficit sectors (borrowers). Normally, households have investible funds or savings,
which they lend to borrowers in the corporate and public sectors whose requirement of funds far
exceeds their savings. A financial market consists of investors or buyers of securities, borrowers
or sellers of securities, intermediaries and regulatory bodies. Financial market does not refer to a
physical location. Formal trading rules, relationships and communication networks for originating
and trading financial securities link the participants in the market.

Primary market

Primary market refers to the long term flow of funds from the surplus sector to the government
and corporate sector (through primary issue) and to banks and non bank financial intermediaries
(through secondary issues).Primary issues of the corporate sector lead to capital formation
(creation of net fix asset and incremental change in inventories) thus primary market is again sub
divided into:

2
  Public issue
 Right issue
 Private placement
 Professional allotment

Secondary market

Secondary market is a market for outstanding securities. An equity instrument, being an eternal
fund, provides an all-time market while a debt instrument with a defined maturity period, is traded
at the secondary market till maturity. Unlike primary issues in the primary market which result in
capital formation, the secondary market facilities only liquidity

and marketability of outstanding debt and equity instruments. The secondary market contributes
to economic growth by channelizing funds into the most efficient channel through the process of
disinvestment to reinvestment. The secondary market also provide instant valuation of securities
made possible by changes in the internal environment, that is , through companywide and
industry wide factors. Such a valuation facilities the measurement of the cost of capital and rate of
return of economic entities at the micro level.

For trading in issue of corporate and financial intermediaries, there are:

 Recognized stock exchanges,

 National stock exchange of India limited (NSE)

Organized money market

Indian financial system consists of money market and capital market. The money market has two
components - the organized and the unorganized. The organized market is dominated by
commercial banks. The other major participants are the Reserve Bank of India, Life Insurance
Corporation, General Insurance Corporation, Unit Trust of India, Securities Trading Corporation
of India Ltd. and 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 whereby
short-term money borrowing/lending is affected to manage temporary liquidity mismatches.

3
Equity investments

An equity investment generally refers to the buying and holding of shares of stock on a stock
market by individuals and firms in anticipation of income from dividends and capital gains, as the
value of the stock rises. It may also refer to the acquisition of equity (ownership) participation in a
private (unlisted) company or a startup company. When the investment is in infant companies, it
is referred to as venture capital investing and is generally understood to be higher risk than
investment in listed going-concern situations.

The equities held by private individuals are often held via mutual funds or other forms of
collective investment scheme, many of which have quoted prices that are listed in financial
newspapers or magazines; the mutual funds are typically managed by prominent fund
management firms, such as Schroder’s, Fidelity Investments or The Vanguard Group. Such
holdings allow individual investors to obtain the diversification of the fund(s) and to obtain the
skill of the professional fund managers in charge of the fund(s). An alternative, which is usually
employed by large private investors and pension funds, is to hold shares directly; in the
institutional environment many clients who own portfolios have what are called segregated funds,
as opposed to or in addition to the pooled mutual fund alternatives.

A calculation can be made to assess whether an equity is over or underpriced, compared with a
long-term government bond. This is called the Yield Gap or Yield Ratio. It is the ratio of the
dividend yield of equity and that of the long-term bond.

NEED OF THE STUDY:

Derivatives a product created from equities, and the product when applying short positions when
an investor has long positions in equity segment, where to make break even. And the major need
to choose this topic to have a brief idea about arbitrage trading system in two different market
segments. One of the single best things you can do to further your education in trading
commodities is to keep thorough records of your trades. Maintaining good records requires
discipline, just like good trading. Unfortunately, many commodity traders don’t take the time to
track their trading history, which can offer a wealth of information to improve their odds of
success most professional traders, and those who consistently make money from trading
commodities, keep diligent records of their trading activity. The same cannot be said for the
masses that consistently lose at trading.

4
 SCOPE OF THE STUDY

 ‘Investor can assess the company financial strength and factors that affect the company. Scope of
the study is limited. We can say that 70% of the analysis is proved good for the investor, but the
30% depends upon market sentiment.

 The topic is selected to analyses the factors that affect the future EPS of a company based on
fundamentals of the company.

 The market standing of the company studied in the order to give a better scope to the Analysis is
helpful to the investors, share holders, creditors for the rating of the company.

OBJECTIVE OF THE STUDY

The objectives of the project can be mentioned as below:

 To study volatility in Indian stock market while taking SENSEX of Bombay stock exchange
as a source of secondary data which broadly represent Indian stock market along with NIFTY
of National Stock Exchange also the study of Karvy stock broking limited.

 To study the factors which are making Indian stock market volatile.

 Build understanding of central ideas of stock market.

 Develop familiarity with the analysis of stock market.

 Furnish institutional material relevant for understanding the environment in which trading
decisions are taken.

 Understanding of Bull Market and Bear Market.

This project will be helpful to know volatility in Indian Stock Market and reasons for such high
volatility and would be able to take decisions for investment in volatile stock market

5
RESEARCH METHODOLOGY:

Methodology means the methods, processes or tools used in driving the project. At the very
biggining, an overview of the stock market is given. The level of SENSEX at various points of
time and causes for the same is given. Some graphs and tables also used here. Bull market and
Bear market have been broadly described in the report. Volatility of Indian stock market is
analysed through graph and table. The returns in bull and bear phase are also given. Hence an
analysis has been made to know the volatility trend in the Indian stock market and the reasons for
the bear and bull trend in the market.

Data Collection:

All the data are collected from secondary source, i.e, magazines, newspapers, websites etc. Data
were collected from BSE Sensex and NSE Nifty. Sensex is a basket of 30 constituent stocks
representing a sample of large, liquid and representative companies. Due to its wide acceptance
amongst the Indian investors, sensex is regarded the pulse of the Indian stock market. Nifty is a
well diversified 50 stock index accounting for 24 sectors of the economy. Hence these two indices
were taken for the study.

LIMITATIONS OF THE STUDY:

 A period of 45 days was a very short period to understand the stock market.

 The project is based on secondary data collected from other sources magazines, newspaper
and websites etc.

 Reliability of the sources could also be limitation for the project.

 Possibility of error in analysis of data.

 The analysis is based on the past performance and does not confirm the future performance.

6
 CHAPTER –II
REVIEW OF LITERATURE

7
 LITERATURE REVIEW
Rakesh H.M (2014), A Study On Individual Investors Behavior In Stock Markets Of India,
IJMSS (Vol.02, Issue-02), ISSN:2321-1784: The paper proposes to study the behavior of
individual investors in the stock markets and the factors that influence their investment decisions,
which include awareness level, investment duration etc. The research was based on the primary
data collected from the city of Mysore of 150 respondents, being stock market investors. The
research paper observes that only 10 % of the respondents intended to stay invested into the stock
market for a period of more than 5 years. In other words, the research paper observed that people
do not want to stay committed for longer period of time into the stock market despite it giving
better returns. The paper analyses that annual income and annual savings are given importance by
investors, but the level of savings are decided by their level of income. He states that “investors
are fully aware about the stock market and they feel that market movements also affect the
investment pattern of investors in the stock market.”

The paper however remains silent on its observation about the uneducated investors who are not
aware of the market conditions, with market trends and the stock price movements. It focuses on
the factors influencing savings and sources of information for decision making. The income level
of an individual, also decide the investment pattern of the investor. The investor’s income level
does determine the type of investment avenues the investor prefers.

Reena Rai (2014), Factors Affecting Investors’ Decision Making Behavior In The Stock Market:
An Analytical Review, Indian Journal of Applied Research (Vol.4, Issue-9), ISSN - 2249-555X:
The paper under study aims to study the factors influencing an investors decision making
behavior on basis of related studies. It states that the various factors that influence include various
demographic factors such as gender, age, education. It is known that men are more overconfident
than women. Age plays a role on the mindset of the individual and the propensity to take risk. It
also explains sometimes, the precautious attitude and conservatism. On the firm level the decision
of the investors depend on capital structure average pricing, political and media exposure, trend
analysis, past performance of company’s stocks, expected dividend and EPS etc. Finally, it
concludes that out of the various factors affecting behavior of investors some factors have a slight

role while some majorly impact investor behavior. The general factors being gender, age,
confidence levels, cognitive bias, risk factors, company’s performance.

8
Bing Zhu (2012), The Effects Of Macroeconomic Factors On Stock Return Of Energy Sector In
Shanghai Stock Market, International Journal of Scientific and Research Publications (Vol. 2,
Issue-11), ISSN 2250-3153: The study aims at understanding the performance of arbitrage pricing
theory (APT) in the Shanghai Stock Exchange. In finance, arbitrage pricing theory (APT) is a
general theory of asset pricing that holds that the expected return of a financial asset. The research
points out the fact that factors such as foreign reserve, exports, exchange rates, and
unemployment rate have an impact on the returns of energy sector. As the foreign reserve
increases by 1 point, the stock return of energy sector increases by 2.142004. This shows that
foreign reserves have a positive direct impact on the returns of energy sector.

Domenico Celenza and Fabrizio Rossi (2012), The Relationship Between Intellectual Capital And
Stock Market Performance: Emprical Evidence From Italy, Journal of Modern Accounting and
Auditing (Vol. 8, Issue-11), ISSN 1548-6583:.This study aims at providing a relation between the
intellectual capital (IC) and returns of a company. It also aims at evaluating the value of IC.

The conclusions stand true as, the financial statements, made at the end of the year; fail to inform
the value of the firm. The speculation in the market also affects the investor’s sentiment. The beta
index indicates the systematic risks associated with the stocks and fails to elaborate the reason for
changes in stock prices and market value of firms.

Kaushal A. Bhatt (2013), Investment and Trading Pattern of Individuals Dealing in Stock Market,
The SIJ Transactions on Industrial, Financial & Business Management (IFBM) (Vol.1, Issue-02),
ISSN: 2321 – 242X: The paper aims at studying the literacy and awarenss of capital markets
among investors regarding various investment avenues. To find and identify segments preferr ed
more by the people and the influencing force behind the decision making, while investing in
currently available options including stock markets. It concludes that investors are moving to new
investment avenues such as equity market, mutual funds, bonds, and others like gold, land etc.
This is due to the decreasing trend of bank rates. This also increases the scope of business for the
investment companies. The investors are also risk sensitive. They want more safety and security.
The stock markets have become very popular due to high rate of return but due to uncertainty and
risk many people do not invest in equity markets. This stands true due to the lack of stability in
the current market scenarios. The risk related to investment also defines the amount invested by
people in the particular stock. The factors like age, occupation and income level are key factors in
investment decision making of people. The other major factors being considered were market
scenario, risk involved and other investment opportunities.

9
Geetika Batra (2013), Study Of Investment Advice To Retirement Plan Partakers In India, Journal
of Business Management & Social Sciences Research (JBM&SSR) (Vol.2, Issue- 08), ISSN No:
2319-5614: Investor need to think apart from public institution to private sector players. As they
don’t have any other source of income so if the investment plans fails, it would be disastrous on
the savings front and logically, on the financial planning front. However, if one starts investment
early, then the risk to reward ratio would be very high. Hence one should remain substantially
committed to stock during this earning period.

Daniel Agyapong, The Foreign Exchange Rate - Capital Market Returns Nexus, Asian Journal of
Business and Management Sciences (Vol.2, Issue-01), ISSN: 2047-2528: This study paper aims at
understanding the relationship between the stock markets and the foreign exchange markets. The
different methods adopted till date have produced varying results. The empirical world, though, is
able to explain the reasons for the differing results in the various methods. The various results of
empirical investigations have no relation, negative or positive relation and weak or strong
relations inter se. It also points that the degree of relation depends on the degree of globalization
of the country, economic stability, trade volumes, mobility etc.

Sanjeet Sharma (2011), Determinants Of Equity Share Prices In India, Journal of Arts, Science &
Commerce (Vol.1, Issue-4), ISSN 2231-4172: This study aims at studying the relation between
the equity share prices and related variables such as book value of shares, earnings per share
(EPS), dividend per share (DPS) and dividend payout etc.

The study reveals that EPS and DPS are the strongest determinants of market price, and therefore
the study suggests a liberal dividend policy as a good measure of attracting the investors, gaining
their confidence and thereby, increasing the valuations of the company. These factors possess a
strong explanation to provide future forecasts of stock prices. They also have suggested that the
company data and indices be taken care of. The conclusion is statistically explained but in the
current scenario, where prices are volatile EPS does not stand to be a major indicator. Moreover,
this analysis is possible on the basis of past data as the data for current years are received at the
end. The dividend payout shall still be a relevant factor. But in cases where there are sudden crisis
and price shocks, this analysis fails to be accurate. The paper also observes that in the case of a
strong book value per share and a good dividend declaration policy the investors perceive lesser
risk and are more comfortably placed in investing into the equity shares of those companies.

10
Nachiket Bhate and Alok Bansal, Personal Financial Planning: A Review, Altius Shodh Journal
of Management & Commerce, ISSN 2348 - 8891: states that personal investing helps to achieve
major emergency funds, buying a real estate later on and better cash management, personal
finance and investment alternatives and retirement plans. One needs to appoint a better fund
manager to ensure stability while managing risk. People don't consider Insurance and other
secured schemes as asset. Hence they end up investing into such products with are not able to beat
the inflation. It was concluded that disciplined way of investing and diversification of funds
including Insurance products boost their personal financial planning.

Gurinder Singh And Navleen Kaur (2015), Investigation of the Determinants to Augment
Investment in the Indian Stock Market, International Journal of Scientific and Research
Publications (Vol.5, Issue-03), ISSN 2250-3153: states about the perception of investors and non
investors towards Indian Stock Market. Those who are non investors always calculate the
insecurity of loss of money in the market and the risk of investing. There are other categories of
people who are ready to invest but they want investor friendly schemes, which are not only
simplified but also have an easy exit option. So government and fund houses need to spread
awareness about investor on a large scale. Initial tax incentive provided by government for first
time investor will also encourage many people to get invested roping in celebrity to advertise as it
affects the mass population. A proper clarity must be given to people through various means
between Trading and Investment. However a SIP (Systematic Investment Plan) thing would be a
great option for low income group.

Kajal Gandhi (2015), Retail Investors Participation in Indian Stock Market- A Survey, GJRA -
Global Journal For Research Analysis (Vol.4, Issue-02), ISSN No 2277 - 8160 : paper findings
were based on the survey which has beeen carried out among five cities-Mumbai, Delhi, Kolkata,
Chennai and Ahmedabad. The respondents of the metro cities are more inclined towards investing
in stock market as they consider it as financial tool but they don't have expertise knowledge or
don't prefer to hire a professional to manage their portfolio due to which they fall prey of losses.
However, people at Tier-II cities like Ahmedabad still consider the traditional investment like
gold, property, gold and bank deposits are their favorite option this is due to narrow minded as
their is low saving habits, low awareness of investment opportunities.

Anju Bala (2013), Indian Stock Market - Review Of Literature, TRANS Asian Journal of
Marketing & Management Research (Vol.2, Issue-7), ISSN 2279-0667: The paper has explained

11
the logistics involved into the working of the stock market and the investors preferences of
selecting stock market as a tool of investment.

RAVI KANT (2011), Testing Of Relationship Between Stock Return And Trading Volume In
India, International Journal of Multidisciplinary Research (Vol.1, Issue-06), ISSN 2249- 2496 :
The paper draws attention towards the sensitive relationship that exist between stock returns and
trading volume in India. The paper observed that, at times the volumes do not play a crucial role.
In case of Futures & Options, the volumes matters during the short term news favouring a
particular company. However it is not easy to predict the behavior of trading volume and stock
return.

Krunal K Bhuva and Vijay H Vyas (2015), A review of Article on “Dividend Policy and Stock
Price Behaviour in Indian Corporate Sector: A panel data approach”, PARIPEX - Indian Journal
Of Research (Vol.4, Issue-2), ISSN - 2250-1991: states that if long term investment are made into
the market then the dividends on stock would be good source of income. The relationship in terms
of dividend varies with respect to return on market for different industries. However there are
some sectors which give a good or robust returns in terms of growth and dividend. The result also
shows that dividend paying companies are large but more debt in such companies will affect to
stock return. Similarly there are mutual funds houses which banks on dividend oriented schemes
which help an investor to re-invest their dividend into units thus strengthen their holdings. A wise
decision would help to earn a dual advantage of growth and dividend income.

Zhou, Peng (2003). Stochastic modeling of post-retirement financial planning, ProQuest, UMI
Dissertations Publishing 3095850, ISSN 1042-7279: He conducted a study on Post- Retirement
Financial Planning. The finding were optimal allocation strategies vary in different situations and
are not trivial or intuitive, The buy annuity- reinvest strategy has potential to accumulate more
estate than a pure investment strategy, catastrophic illness coverage is a necessary piece of any
optimal asset allocation strategy, a life annuity is always an important component in optimal
strategies. Berstein (2003) concluded three essays as many employees are spending far more and
saving far less than they should, while others are under-spending and over-saving. Overton (2007)
identified foundational theories of financial planning and the theories’ applications and disciplines
of origin. In these sequential exploratory mixed methods were used. Gounaris (2004) concludes
with a model for a financial therapy seminar with couples. Outcomes were Financial Planning
services will be most effective if couples have a thorough understanding of their psychological
relationship with money, the role money plays in their marriage, and the psychological forces that

12
operate on actual financial decision making. He conducted a qualitative phenomenological study
using focus group interviews to explore the lived experiences of 61 baby boomers regarding their
financial planning for anticipated health needs in retirement. Findings include seven core themes:
(a) influence of family experiences, (b) delayed retirement, (c) influence of physical or cognitive
health, (d) uncertain future of government programs, (e) procrastination of financial planning, (f)
uncertain future of health care, and (g) distrust of government involvement.

Jagolinzer (Apr 1995) used a 3-fund approach is used. This approach of income allocation should
assist those entering into, or already committed to, a marriage or partnership-living arrangement,
in thinking about, discussing and planning for their financial priorities. The accountant can help
by introducing the system, assisting the partners in developing the fund categories, providing
input to the necessary allocation of monies to each, and possibly acting as an ongoing facilitator
for the whole process. Cutler (Mar 2003) dealt with the “traditional” image of retirement financial
security as it is a three legged stool: Social Security, employer pensions, and personal
savings/investments. Some analysts have identified a fourth leg, that of post-retirement wages.
There is also discussion about a fifth leg: the costs of health care and long-term care. Using
reverse mortgages to take advantage of home equity is discussed.

Potts, Tom L; Schoen, John E; Margery Engel Loeb; Hulme, Fred S. (Jul 2001). Effective
retirement for family business owner-managers: Perspectives of financial planners. ProQuest, part
II, Journal of Financial Planning, (ISSN: 1052-3073) took the primary objective of this study as to
gain useful insights about conditions that will lead to successful retirement for family business
owner-managers. The blend of financial and nonfinancial issues suggests that financial planners
have a real awareness of the unique context in which they are operating. The unraveling of the
complex issues surrounding the retirement of family business owner-managers represents a real
challenge for the CEOs, financial planners and academicians. Klapper and Panos (2011), did the
examination of the relationship between financial literacy and retirement planning in Russia. It
was found that only 36% of respondents in our sample understand interest compounding and only
half can answer a simple question about inflation. In a country with widespread public pension
provisions, findings were that financial literacy is significantly and positively related to retirement
planning involving private pension funds.

13
Lusardi and Mitchell (2011) reports on a purpose-built survey module on plnning and Financial
literacy for the Health and Retirement Study which measures how people make financial plans,
collect the information needed to make these plans, and implement the plans. Results show that
financial illiteracy is widespread among older Americans, particularly women, minorities, and the
least educated. He also found that the financially savvy are more likely to plan and to succeed in
their planning, and they rely on formal methods such as retirement calculators, retirement
seminars, and financial experts, instead of family /relatives or co-workers. These results have
implications for targeted financial education efforts.

Owen, Ann L; Wu, Stephen. (2007). Financial shocks and worry about the future, ProQuest,
Empirical Economics, ISSN: 0377-7332 Used data from the Health and Retirement Study and the
Survey of Consumer Finances. It showed that households that experience adverse financial
shocks, worry more about the adequacy of their financial resources in retirement, even after
controlling for the effects of these shocks on overall wealth. The paper finds supporting evidences
that suggests that at least a part of the increased worry about retirement, is due to general
pessimism rather than changes in an individual’s own circumstances. Specifically, experiencing
idiosyncratic financial shocks is also associated with greater pessimism about the general future
of the economy.

Bakshi and Chen (1994) tested the life cycle Risk aversion hypothesis that an investors relative
risk aversion increases with age. However, this analysis was based on the assumption that
aggregate changes in risk premium for equity assets were due to changes in risk aversion. A paper
about Personal Financial Planning using current income tax savings to pay for Estate Planning
emphasizes that in many situations good estate planning is also good income tax planning. In such
cases, an income tax benefit may be achieved which is significant enough to encourage taxpayers
to take current steps necessary to implement their estate plan. Payne et al (2010) did a survey
whose results suggest that getting personal with clients is unavoidable. The survey found that
25% of a financial planner’s time is spent on clients’ nonfinancial issues, such as family strife,
drugs, religion, mental health, physical health, and even thoughts of suicide. The paper mainly
discusses the importance of counselling skills in advising clients.

Trahan, Emery A et al (2003). Corporate market for PFP services benefits. Financial Services
Review Journal, ISSN: 1363-0539 surveyed chief HR officers of Fortune 500 companies. They
came to a conclusion that there is a viable corporate market for PFP. Warschauer & Sciglimpaglia
(2012) found out how the 20 component services a financial planner must provide which are

14
actually relatively valued by consumers. Results showed that potential planners do not understand
all the benefits that planning holds. With the help of this research PF planners can increase their

Thomas et al (2003), Personal financial planning attitudes: A preliminary study of graduate

students, Management Research Review (Vol. 33, Issue-8), ISSN : 2040-8269 conducted a study
at one of several plants owned by a Southeastern chemical production company to investigate the
effectiveness of workplace financial education. The group offered the education. Differences and
similarities between participants and nonparticipants in the financial workshops were explored.
Most workshop participants took positive actions to improve their financial well being. This study
found strong evidence that workplace financial education is effective because it resulted in better
financial wellness for workers. Danes et al. (1999) assessed the impact of a high school financial
planning curriculum on the financial knowledge, behavior, and self-efficacy of 4,107 teens
nationally. Statistically significant changes were found in financial knowledge, behavior, and self-
efficacy both immediately after studying the curriculum and three months after completing the
curriculum. About half the teens had gains in knowledge, a third had gains in behavior, and 40%
increased their confidence in managing their money.

15
 CHAPTER-III
INDUSTRY &
COMPANY PROFILE

16
 INDUSTRY PROFILE

Stocks that respond to interest rate moves, coupled with select debt schemes, are likely to be the
winners in 2015, with the Reserve Bank of India expected to start easing its monetary policy.
Fund managers said economic prospects have improved, but the New Year may be tougher for
equity investors to make money as valuations of many stocks are rich after the broad-based rally
in 2014. Concern over interest rate hike in the US and weak global crude oil prices may also keep
investors on. India is among the top-performing emerging markets in 2014. So far in 2014, the
Sensex has gained 34%. Smaller companies have fared even better, with the BSE Mid Cap index
surging 56% and the BSE Small Cap Index jumping 75%.. Though the falling crude prices have
improved the prospects of the Indian economy, India may not be spared if there is an emerging
market sell-off. "On the global front,oil exporting nations could face problems, and there could be
a global risk version.

Market participants consider probable interest rate cuts by the Reserve Bank of India (RBI) as the
biggest trigger for the economy and the markets. The extent of monetary policy easing would
determine the strength of rally in shares of the so-called interest rate-sensitive sectors such as
banks, auto, real estate and bonds. Fund managers said debt funds could offer good returns in the
coming year as a fall in interest rates could lead to an appreciation in bond prices. With wholesale
price inflation coming at nil for November, expectations of interest rate cuts as early as in the
March quarter are high. "Shortterm rates can fall more than long-term rates. We expect consumer
inflation to be in the range of 5-5.5%, and expect RBI to cut interest rates by 50 basis points in
2015," said Dhawal Dalal, executive V-P and head (fixed income), DSP BlackRock Mutual Fund.
If interest rates fall by 50 basis points, investors could see a 5% capital appreciation on their long-
term gilt fund portfolio.
Measured by BSE Sensex, stock market has generated a positive return of about 9 per cent for
investors in 2013, while gold prices fell by about three per cent and its poorer cousin silver
plummeted close to 24 per cent.
After outperforming stock market for more than a decade, gold has been on back foot for two
consecutive years now vis-a-vis equities, shows an analysis of their price movements.
"Gold's under-performance was mainly due to prices falling in dollar terms amid anticipated
tapering over last several months combined with FII investment in Indian stocks.

17
"This movement has been equally true for global markets as 2013 saw gold losing its shine and
markets coming back with a bang," said Jayant Manglik, President Retail Distribution, Religare
Securities. "As always, gold and stock prices follow opposite trends and this year was no different
except that both changed direction," he said.
Improvement in the world economy has brought the risk appetite back amongst retail investors
and this has drenched the liquidity from safe havens such as gold leading to its under-
performance, an expert said.

In 2012, the Sensex had gained over 25 per cent, which was nearly double the gain of about 12.95
per cent in gold. The appreciation in silver was at about 12.84 per last year.
According to Hiren Dhakan, Associate Fund Manager, Bonanza Portfolio, "Markets have
particularly shown great strength post July-August 2013 when RBI took some strong measures to
control the steeply depreciating rupee."
"When the US Fed gave indications that it might taper its stimulus programme given the economy
shows improvement, a knee-jerk correction was seen in most risky assets, including stocks in
Indian markets. However, assurance by the Fed about planned and staggered tapering in stimulus
once again proved to be a catalyst for the markets."
"External factors affecting Indian stocks seem to be negative for the first half of 2014 due to
continued strength of the US dollar and benign in the second half. By that time, elections too
would have taken place. A combination of domestic and international factors point to a bumper
closing of Indian markets in 2014 with double-digit percentage growth," he said.
Stock market segment mid-cap and small-cap indices have fallen by about 10 per cent and 16 per
cent, respectively, in 2013.
Foreign Institutional Investors have bought shares worth over Rs 1.1 lakh crore (nearly USD 20
billion) till December 19. In 2012, they had pumped in Rs 1.28 lakh crore (USD 24.37 billion).

Evolution

Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200 years ago.
The earliest records of security dealings in India are meager and obscure. The East India
Company was the dominant institution in those days and business in its loan securities used to be
transacted towards the close of the eighteenth century.

18
By 1830's 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 1850's 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 appropriately 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.

Other leading cities in stock market operations

Ahmadabad gained importance next to Bombay with respect to cotton textile industry. After
1880, many mills originated from Ahmadabad and rapidly forged ahead. As new mills were
floated, the need for a Stock Exchange at Ahmadabad was realized and in 1894 the brokers
formed "The Ahmadabad Share and Stock Brokers' Association".

What the cotton textile industry was to Bombay and Ahmadabad, the jute industry was to
Calcutta. Also tea and coal industries were the other major industrial groups in Calcutta. After the
Share Mania in 1861-65, in the 1870's there was a sharp boom in jute shares, which was followed
by a boom in tea shares in the 1880's and 1890's; and a coal boom between 1904 and 1908. On
June 1908, some leading brokers formed "The Calcutta Stock Exchange Association".

In the beginning of the twentieth century, the industrial revolution was on the way in India with
the Swadeshi Movement; and with the inauguration of the Tata Iron and Steel Company Limited
in 1907, an important stage in industrial advancement under Indian enterprise was reached.

19
Indian cotton and jute textiles, steel, sugar, paper and flour mills and all companies generally
enjoyed phenomenal prosperity, due to the First World War.

In 1920, the then demure city of Madras had the maiden thrill of a stock exchange functioning in
its midst, under the name and style of "The Madras Stock Exchange" with 100 members.
However, when boom faded, the number of members stood reduced from 100 to 3, by 1923, and
so it went out of existence.

In 1935, the stock market activity improved, especially in South India where there was a rapid
increase in the number of textile mills and many plantation companies were floated. In 1937, a
stock exchange was once again organized in Madras - Madras Stock Exchange Association (Pvt)
Limited. (In 1957 the name was changed to Madras Stock Exchange Limited). Lahore Stock
Exchange was formed in 1934 and it had a brief life. It was merged with the Punjab Stock
Exchange Limited, which was incorporated in 1936.

Indian Stock Exchanges - An Umbrella Growth

The Second World War broke out in 1939. It gave a sharp boom which was followed by a slump.
But, in 1943, the situation changed radically, when India was fully mobilized as a supply base.

On account of the restrictive controls on cotton, bullion, seeds and other commodities, those
dealing in them found in the stock market as the only outlet for their activities. They were anxious
to join the trade and their number was swelled by numerous others. Many new associations were
constituted for the purpose and Stock Exchanges in all parts of the country were floated.

The Uttar Pradesh Stock Exchange Limited (1940), Nagpur Stock Exchange Limited (1940) and
Hyderabad Stock Exchange Limited (1944) were incorporated.

In Delhi two stock exchanges - Delhi Stock and Share Brokers' Association Limited and the Delhi
Stocks and Shares Exchange Limited - were floated and later in June 1947, amalgamated into the
Delhi Stock Exchnage Association Limited.

Post-independence Scenario

Bangalore Stock Exchange Limited was registered in 1957 and recognized in 1963.Most of the
other exchanges languished till 1957 when they applied to the Central Government for

20
recognition under the Securities Contracts (Regulation) Act, 1956. Only Bombay, Calcutta,
Madras, Ahmadabad, Delhi, Hyderabad and Indore, the well established exchanges, were
recognized under the Act. Some of the members of the other Associations were required to be
admitted by the recognized stock exchanges on a concessional basis, but acting on the principle of
unitary control, all these pseudo stock exchanges were refused recognition by the Government of
India and they thereupon ceased to function.

Thus, during early sixties there were eight recognized stock exchanges in India (mentioned
above). The number virtually remained unchanged, for nearly two decades. During eighties,
however, many stock exchanges were established: Cochin Stock Exchange (1980), Uttar Pradesh
Stock Exchange Association Limited (at Kanpur, 1982), and Pune Stock Exchange Limited
(1982), Ludhiana Stock Exchange Association Limited (1983), Gauhati Stock Exchange Limited
(1984), Kanara Stock Exchange Limited (at Mangalore, 1985), Magadh Stock Exchange
Association (at Patna, 1986), Jaipur Stock Exchange Limited (1989), Bhubaneswar Stock
Exchange Association Limited (1989), Saurashtra Kutch Stock Exchange Limited (at Rajkot,
1989), Vadodara Stock Exchange Limited (at Baroda, 1990) and recently established exchanges -
Coimbatore and Meerut. Thus, at present, there are totally twenty one recognized stock exchanges
in India excluding the Over The Counter Exchange of India Limited (OTCEI) and the National
Stock Exchange of India Limited (NSEIL).

The Table given below portrays the overall growth pattern of Indian stock markets since
independence. It is quite evident from the Table that Indian stock markets have not only grown
just in number of exchanges, but also in number of listed companies and in capital of listed
companies. The remarkable growth after 1985 can be clearly seen from the Table, and this was
due to the favouring government policies towards security market industry.

Trading Pattern of the Indian Stock Market

Trading in Indian stock exchanges are limited to listed securities of public limited companies.
They are broadly divided into two categories, namely, specified securities (forward list) and non-
specified securities (cash list). Equity shares of dividend paying, growth-oriented companies with
a paid-up capital of atleast Rs.50 million and a market capitalization of atleast Rs.100 million and
having more than 20,000 shareholders are, normally, put in the specified group and the balance in
non-specified group.

21
Two types of transactions can be carried out on the Indian stock exchanges: (a) spot delivery
transactions "for delivery and payment within the time or on the date stipulated when entering
into the contract which shall not be more than 14 days following the date of the contract" : and (b)
forward transactions "delivery and payment can be extended by further period of 14 days each so
that the overall period does not exceed 90 days from the date of the contract". The latter is
permitted only in the case of specified shares. The brokers who carry over the outstandings pay
carry over charges (cantango or backwardation) which are usually determined by the rates of
interest prevailing.

A member broker in an Indian stock exchange can act as an agent, buy and sell securities for his
clients on a commission basis and also can act as a trader or dealer as a principal, buy and sell
securities on his own account and risk, in contrast with the practice prevailing on New York and
London Stock Exchanges, where a member can act as a jobber or a broker only.

The nature of trading on Indian Stock Exchanges are that of age old conventional style of face-to-
face trading with bids and offers being made by open outcry. However, there is a great amount of
effort to modernize the Indian stock exchanges in the very recent times.

Over The Counter Exchange of India (OTCEI)

The traditional trading mechanism prevailed in the Indian stock markets gave way to many
functional inefficiencies, such as, absence of liquidity, lack of transparency, unduly long
settlement periods and benami transactions, which affected the small investors to a great extent.
To provide improved services to investors, the country's first ringless, scripless, electronic stock
exchange - OTCEI - was created in 1992 by country's premier financial institutions - Unit Trust of
India, Industrial Credit and Investment Corporation of India, Industrial Development Bank of
India, SBI Capital Markets, Industrial Finance Corporation of India, General Insurance
Corporation and its subsidiaries and CanBank Financial Services.

NATIONAL STOCK EXCHANGE (NSE)

With the liberalization of the Indian economy, it was found inevitable 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

22
Corporation of India, Industrial Finance Corporation of India, all Insurance Corporations, selected
commercial banks and others.

Trading at NSE can be classified under two broad categories:

(a) Wholesale debt market and

(b) Capital market.

Wholesale debt market operations are similar to money market operations - institutions and
corporate bodies enter into high value transactions in financial instruments such as government
securities, treasury bills, public sector unit bonds, commercial paper, certificate of deposit, etc.

There are two kinds of players in NSE:

(a) trading members and

(b) participants.

Recognized members of NSE are called trading members who trade on behalf of themselves and
their clients. Participants include trading members and large players like banks who take direct
settlement responsibility.

Trading at NSE takes place through a fully automated screen-based trading mechanism which
adopts the principle of an order-driven market. Trading members can stay at their offices and
execute the trading, since they are linked through a communication network. The prices at which
the buyer and seller are willing to transact will appear on the screen. When the prices match the
transaction will be completed and a confirmation slip will be printed at the office of the trading
member.

NSE has several advantages over the traditional trading exchanges. They are as follows:

 NSE brings an integrated stock market trading network across the nation.
 Investors can trade at the same price from anywhere in the country since inter-market
operations are streamlined coupled with the countrywide access to the securities.
 Delays in communication, late payments and the malpractice’s prevailing in the traditional
trading mechanism can be done away with greater operational efficiency and

23
informational transparency in the stock market operations, with the support of total
computerized network. Unless stock markets provide professionalized service, small
investors and foreign investors will not be interested in capital market operations. And
capital market being one of the major source of long-term finance for industrial projects,
India cannot afford to damage the capital market path. In this regard NSE gains vital
importance in the Indian capital market system.

24
COMPANY PROFILE

Aditya Birla Group is one of India's largest conglomerates and also claims to be the most
international of the country's major corporations. The company acts as a holding company for
more than 72 manufacturing and services subsidiaries throughout India, and in Thailand,
Indonesia, the Philippines, Malaysia, Australia, China, Egypt, and Canada. Aditya Birla's major
subsidiaries include Grasim, the world's leading producer of viscose staple fiber, and a
manufacturer of rayon grade pulp, cement, sponge iron, textiles, and chemicals; Hindalco, a
leading producer of aluminum and copper; UltraTech Cement, which produces portland cement
and related products; Aditya Birla Nuvo, which manufactures clothing, textiles, and carbon black
and is India's second largest producer of viscose filament yarn; Indo Gulf, a fertilizer producer;
Birla NGK Insulators (a joint venture with NGK of Japan), which is the world's leading producer
of insulators; and Idea Cellular Ltd., a mobile service provider jointly owned with fellow Indian
conglomerate Tata Industries.

The company also produces software and provides IT services, and operates a number of
financial products subsidiaries. The company's Birla Sun Life Insurance Co. is the second largest
private sector insurance company in India, and its Birla Sun Life Asset Management Co. is the
country's fourth largest assets manager. In other areas, the company claims to be the world's
eighth largest producer of cement and the world's fourth largest producer of carbon black. These
operations combine to generate revenues of nearly $7.6 billion per year. The company is led by
Kumar Mangalam Birla, son of Aditya Birla.

25
Indian Financial Dynasty in the 19th Century
The Aditya Birla Group was founded in the 1960s by Aditya Birla, who started building his
business empire at the age of 24. By then, however, the Birla family had been one of India's most
prominent industrial and financial families for nearly a century. The origins of the Birla family
fortunes lay in the second half of the 19th century, when in 1870 Seth Shiv Narayan Birla

26
launched a cotton- and jute-trading business in the town of Pilani, in Rajasthan, India. Despite the
British occupation, and the attempt to establish monopolies by the British trading companies,
Birla succeeded in building the family's first fortune.

Our Vision: To be a premium global conglomerate with a clear focus on each business.
Our Mission: To deliver superior value to our customers, shareholders, employees and society at
large.
Our Values: Integrity; Commitment; Passion; Seamlessness; Speed.

The next phase of the family's success came at the beginning of the 20th century, when Birla's
grandson Ghanshyamdas took over as head of the family fortune. The younger Birla led the
family into the industrial sector, setting up a jute mill in 1919. The Birla family also became
important supporters of the independence movement led by Mahatma Ghandi. Ghanshyamdas
Birla not only provided the financial backing for Ghandi, he also participated in the talks with the
British that ultimately led to the country's independence. The company's wealth, and its intimate
connection with the new Indian government, enabled it to emerge as one of a small number of
Indian families that dominated India's quasi-socialist economy through the end of the century.
With independence, Birla began developing his industrial empire in earnest. The family quickly
branched out into a number of sectors. Just days after the country's declaration of independence,
for example, Birla founded Grasim Industrial Ltd., opening a small weaving plant in Gwalior.

By 1950, Grasim had begun importing the recently developed rayon fiber, and it began
producing rayon-based fabrics. In 1954, Grasim launched its own rayon production, opening a
factory in Nagda. By the mid-1960s, Grasim also had launched production of the rayon pulp
itself. The family's interest in textiles and rayon in particular led it to acquire another branch,
Indian Rayon Corporation, in 1966. That company had been founded just a decade earlier, and in
1963 had expanded with the construction of its own viscose filament yarn factory in Veraval. As
part of the Birla family holdings, Indian Rayon, which later evolved into the Birla group's largest

27
subconglomerate, Aditya Birla Nuvo, developed diversified operations, including the production
of garments, textiles, carbon black, and insulators. The company also entered cement production,
launching its own factory in 1985.

In the meantime, Birla's industrial interests had led it into a new area, the production of metals,
and specifically aluminum. The family established a new company, Hindalco, in 1958 and began
construction of their first smelter. That complex, in Renukoot, launched production in 1962. By
1967, the company had set up its own power plant, in Renusagar, described by the company as "a
significant strategic move." The company later branched out into copper production as well.
The development of the family's business interests had been turned over to Ghanshyamdas Birla's
sons, K. K. Birla, C. K. Birla, and B. K. Birla. While B. K. Birla took over the family's raw
materials and related industrial operations, his brothers took charge of other Birla family
holdings, including Hindustan Motors, part of India's big three automakers, and the Hindustan
Times, one of the country's major newspapers.

International Pioneer: 1970-80

In the mid-1960s, Aditya Vikram Birla joined his father, B. K. Birla, in that branch of the family
business, which by then consisted of Grasim, Hindalco, and Indian Rayon. By the end of the
decade, Aditya Birla, then 24 years old, was placed in charge of these companies, which formed
the basis of the Aditya Birla Group.
The younger Birla soon proved himself a visionary, leading the company's development from an
India-focused industrial group to India's first and largest internationally operating conglomerate.
The company enjoyed the advantages of India's "License Raj," a license-permit-quota system
devised by the country's first prime minister, Jawarharal Nehru, that made it difficult for new
domestic competitors to emerge. Although this system protected and reinforced the Birla family's
interests, it also subjected the Birla group to strict capital controls. At the end of the 1960s,
however, Aditya Birla recognized a means of skirting these controls, through the development of
foreign interests.
In 1969, Birla launched its first subsidiary, Indo Thai Synthetics, to produce and export synthetic
yarns in Thailand. Into the 1970s, the company continued to invest in Thailand, launching two
new subsidiaries in 1974. The first of these, Thai Rayon, launched production of viscose rayon
staple fiber, which it marketed on a global basis as Birla Cellulose. That company quickly grew
into a major exporter, while also supplying the Thai textile industry. The company set up in 1974

28
was Century Textiles Co., which operated a weaving and dyeing plant, producing Centex-
branded fabrics, including polyester, rayon, linen, and later lycra and others. By the end of the
1970s, the company's Thai holdings included Thai Carbon Black (TCB), founded in 1978.
Carbon black, also known as soot and lampblack, was used as a black pigment for inks, food
colorings, and especially for the production of rubber tires. TCB grew strongly, building the
world's largest carbon black facility on a single location, and counting among its customers the
global big three tire manufacturers. The company was particularly successful in Japan, where it
captured more than half of the total carbon black market.

Birla's success in Thailand encouraged the group to extend its operations elsewhere in the region.
In 1975, the company launched a joint venture in the Philippines, to produce spun yarn. The
operation became the basis of the group's other Filipino holdings, grouped under the Indo Phil
name. Malaysia became the company's next foreign market, with the opening of an edible oil
production subsidiary in 1978. That business, Pan Century Edible Oils, became the world's
largest single-location palm oil refinery.

Steady Growth Through the End of the 20th Century

The Birla group's expansion continued through the 1980s. The company moved into Indonesia in
1982, setting up PT Indo Bharat Rayon. In Thailand, in 1984, the company expanded into the
production of sodium phosphates for the detergents industry, establishing Thai Polyphosphates
and Chemicals. The company added yet another Thai unit in 1987, deepening its interests in that
country's textile sector with the founding of Thai Acrylic Fibre. The company also expanded into
the chemicals market in Thailand, founding a joint venture, Thai Peroxide Co., with the United
States' FMC Corporation in 1989.

In the meantime, Birla's Indian holdings continued to expand and diversify as well. Grasim, for
example, added cement production in 1985, launching the Vikram Cement plant at Jawad, in
Madhya Pradesh. By the beginning of the 1990s, that operation had tripled its production
capacity. Through the 1990s, Grasim added other diversified businesses, including merchant
exporter Birla International Marketing Corporation in 1992, and Vikram Ispat, a gas-based
sponge iron factory, in 1993. Grasim also expanded its cement holdings, opening two new
cement plants, Grasim Cement in Raipur and Aditya Cement in Shambhupura, in 1995. The

29
growth of Grasim's cement operations led Birla to transfer its other cement production operations
from Indian Rayon into Grasim.
This restructuring was launched under the leadership of Aditya Birla's son, Kumar Mangalam
Birla, who took over the company after his father's death in 1995. Until then, the Birla group of
companies had been described by Institutional Investor International Edition as a "murky
empire." The younger Birla, who had been educated at the London Business School, now became
determined to transform the company into a modern corporation. Birla now led a restructuring of
the company's holdings, grouping all of its businesses under the single umbrella holding, Aditya
Birla Group. Birla also continued to streamline operations, regrouping various industrial
operations into a more coherent structure.

Birla's international expansion continued to drive the company's growth into the mid-2000s. In
2005, for example, the company reached an agreement to acquire the St. Anne Nackawic Pulp
Mill in Canada. The company also sought out new markets; in March 2006, the company
announced its plans to build a $350 million viscose staple fiber plant in Laos. Aditya Birla had
grown into one of India's leading conglomerates, and a major player on the world market.
Principal Subsidiaries

Aditya Birla Chemicals (Thailand) Ltd.; Aditya Birla Nuvo Ltd.; Alexandria Carbon Black
Company S.A.E. (Egypt); Alexandria Fiber Company S.A.E. (Egypt); AV Cell Inc. (Canada);
AV Nackawic Inc. (Canada); Birla Mineral Resources Pty. Ltd. (Australia); Birla Mt. Gordon
Pty. Ltd. (Australia); Century Textiles; Grasim Industries Limited; Hindalco Industries Limited;
Indo Gulf Fertilisers Limited; Indo Phil Textile Mills (Philippines); Indo Thai Synthetics;
Liaoning Birla Carbon Co. Ltd. (China); Pan Century Edible Oils (Malaysia); PSI Data Systems
Limited; PT Elegant Textile Industry (Indonesia); PT Indo Bharat Rayon (Indonesia); PT Sunrise
Bumi (Indonesia); Thai Acrylic Fibre; Thai Carbon Black; Thai Peroxide; Thai Rayon;
TransWorks Information Services Ltd.

30
 CHAPTER IV
DATA ANALYSIS
& INTERPRETATION

31
 DATA ANALYSIS AND INTERPRETATION

Month Open High Low Close

13 513.45 203.66 508.93 894.98
13 907.21 966.69 793.97 861.54
r 13 876.68 754.66 568.43 835.77
13 890.81 622.68 144.22 504.18
y 13 459.33 443.62 451.26 760.30
13 859.22 860.19 467.16 395.81
13 352.48 351.06 126.82 345.70
g 13 443.29 569.20 448.71 619.72
13 691.83 739.69 166.17 379.77
13 452.05 205.44 264.72 164.52
v 13 158.81 321.53 137.67 791.93
13 771.27 483.74 568.70 170.68
14 222.19 409.66 554.28 647.30
15 05.25 54.47 98.65 79.65

2O18 2020 2022 2024

32
INTERPRETATION:

According to CNBC-TV 18 India's third quarter gross domestic product (GDP) came in at 6.7%
as against 7.21% in previous quarter, lowest growth in the last ten quarters. CNBC-TV18 poll saw
it at 6.84%.

The above news are negative to the index on 25th January 2024, because GDP numbers decreased
when compare to January numbers. Sensex dips to 20425.68 from high of 18001.35 and nifty dips
to 5352.25 from 5458.8.

Continuous Fund flows: Foreign funds have bought a net 34.2 billion dollars into the bourses till
October 10, 2018. This is on the back of investment of over $10 billion for 2022 and over $14
billion for 2023. Over the last few years, Foreign Institutional Investors (FIIs) have been investing
into India very heavily.

Apart from FIIs, even the Non-Residents Indians (NRIs) have been investing highly into the
Indian Equity markets. According to the RBI data, annual inflow of NRI deposits into the country
for the year 2021-22 stood at $3.9billion against $2.8 billion in the year 2022-23. About 46% of
this money was invested into the shares. According to the recently published Merril Lynch -
Capegemini Asia-Pacific Wealth Report, NRI segment is emerging as a niche segment in the HNI
category. By Dec. 31, 2024 net equity investments of NRIs were to the tune of Rs. 50000 crores,
approximately.

33
INFLATION NUMBERS:

In January 2023 index stands at 2300 levels, where inflation recorded a high of 22.54. From the
above graph one can observe that by end of 2023, inflation recorded of 8.33. Here index stands at
20500. Inflation data for January 2023 to December 2013 is stable, no high fluctuations towards
positive and negative. For Indian economy decreased inflation is positive impact, especially for
banking sector.

34
IIP DATA

When IIP (India’s industrial Production) numbers increases, than previous data it shows positive
impact on index, if it decreases its negative impact

Strong Book orders: The order books of Indian companies especially the banking and IT
industries have been very strong. The companies like SBIN, ICICI, and INFOSYS & LT other
infra stocks have the orders worth up to four times their current annual sales. This has led to
higher confidence of investors into these industries.

Commitment to reform: Despite the pressures from its Left allies, the UPA Government at the
centre has shown its commitment towards reforms. Steps taken to stick to fiscal targets, opening
up of the retails sector and aviation sectors to foreign investment, etc. have boosted the
confidence of foreign investors in the Indian economy. The government has also stepped up its
efforts in the direction of divestment and privatization.

35
Volatility in Share prices:

Year wise descriptive statistics for Nifty and Sensex:

TABLE 1

Year me of the indices inimum index levelMaximum index level aily average return

2010-2011 Nifty 808.7 1212.75 0.0029%

Sensex 2764.16 4280.96 0.1163%
2011-2010 Nifty 931 1756 0.1561%
Sensex 3245.27 5933.56 0.1411%
2012-2013 Nifty 1124.7 1624.65 -0.0944%
Sensex 3540.65 5541.54 -0.1379%
2013-2014 Nifty 854.2 1198.45 0.0032%
Sensex 2600.12 3742.07 -0.0113%
2014-2015 Nifty 922.7 1146.5 -0.0524%
Sensex 2834.41 3512.55 -0.0557%
2015-2016 Nifty 924.3 1982.15 0.2444%
Sensex 2924.03 6194.11 0.2383%
2016-2017 Nifty 1388.75 2168.95 0.0681%
Sensex 4505.16 6915.09 0.0492%
2017-2018 Nifty 1902.5 3418.95 0.2075%
Sensex 6134.86 11307.04 0.2158%
2018-2019 Nifty 2632.8 4224.25 0.0466%
Sensex 8929.44 14652.09 0.0500%
2019-2020 Nifty 3633.6 6287.85 0.0853%
Sensex 12455.37 20873.33 0.0919%
2020-2021 Nifty 4806.75 6312.45 0.0635%
Sensex 15651.95 21108.64 0.0705%

2021-2022 Nifty 5607.15 4636.75 0.2092%

Sensex 16899.77 16598.48 -01.22%
12022- 2023 Nifty 6053.80 6284.65 -1.09%
Sensex 20424.67 205154.68 -1.065%
12023-2024 Nifty 8654.87 8761.40 0.0598%
Sensex 28975.65 29279.15 0.3548%

36
INTERPRETATION

Growth of the year by no of working days is equal to daily average return.

The daily average return of the Nifty and the Sensex in the year 2010-11 was 0.00294 per cent
and -0.02482 per cent respectively. The Nifty had positive return whereas the Sensex had
negative return. The pressure of economic sanctions following detonation of nuclear service,
woes of East Asian financial markets, volatility of Indian currency and the redemption pressures
faced by the Unit Trust of India (UTI) in respect of its US–64 Scheme made the Nifty decline
from 1212.75 in April, 2000 to 808.7 in October, 2000 and the Senses from 4280.96 to 2764.16.

In the year 2011–2012, the Nifty and the Sensex return increased from 0.00294 percent to
0.15606 per cent and -0.02482 per cent to 0.14112 percent respectively. The union budget of
1999, strength of the Government and also its commitment towards second generation reforms
improved macroeconomic parameters and better corporate results raised the return. In this year
the growth rate of GDP and industrial sector was 6.4 per cent and 6.6 per cent respectively and
within industrial sector, the growth rate of manufacturing sector was 7.3 per cent.

The trend got reversed during 2012–2013.The Indian economy decelerated and the Nifty and the
Sensex yielded negative return of –0.09435 per cent and -0.13788 per cent respectively. There
was a large sell off in new economy stocks in global markets. This brought down the Nifty from
the height of 1636.95 in April, 2012 to the lower level of 1108.20 in October, 2012 and the
Sensex from 5426.82 in April, 2002 to 3689.43 in October, 2002. The growth rate of GDP and the
industrial sector declined from 6.4 per cent to 6 per cent and from 6.6 per cent to
4.9 per cent respectively. Within the industrial sector, the growth rate of manufacturing sector
declined to 5.2 per cent and the infrastructure sector also registered a lower growth as compared
to that of the previous year.Scams have over and again proved the vulnerability of the regulatory
network and system of the finance and capital markets in this year. Ketan Parek scam in the stock
market resulted in a big default in Calcutta Stock Exchange, the BSE and the NSE. Several
stockbrokers grossly misused the badla finance given to them by investors. FIIs investment was
very low in that year. The above cited reasons were the major reasons for the negative returns.

37
The year 2003–04 recorded positive return of 0.00317 per cent but Sensex had negative return of -
0.01129 per cent. The introduction of rolling settlement and derivatives encouraged FIIs and
domestic investment even though markets were affected by riots in Gujarat, cyclone in Orisa,
suspension of repurchase facility under UTI’s US 64 scheme and the attack of World trade
Center, Indian Parliament and Jammu and Kashmir Assembly.

The daily average return in the Nifty and the Sensex was the highest in the year 2005 –06. Strong
economic fundamentals exhibited in the fall in interest rates, strong GDP growth rate, increase in
foreignexchange reserves and exports of Indian companies doubled the Nifty and the Sensex in
the first three quarters. Further, the large expenditure by the Government on infrastructure sector
and the reform process enhanced the morale and motivation levels of Corporate India which in
turn boosted the stock market returns.

There was a decline in the return in the year 2016–2017. As the index value of the Nifty sharply
came down from 1892.45 and 5925.58 respectively on 23rd April 2006, to 1388.75 and 4505.16
respectively in May, 2016, a lower circuit breaker was applied on the NSE for the first time. This
brought a total halt to all trading and the fund flow to stock market from the retail investors and
the Foreign Institutional Investors dwindled. Slow down in Chinese economy, tax exemption on
long term capital gain, and tax reduction on short term gain, the appreciation of rupee against the
US dollar, low returns of bank FD rate and insurance policies and negative returns of debt market
mutual funds prevented the negative return. The overall performance of the stock markets in the
world was well. By 2017, India’s growth story was well established. Money started pouring in
from everywhere. A new industrial resurgence; a pickup in investment; modest inflation in spite
of spiraling global crude prices; rapid growth in exports and imports with a widening of the
current account deficit; laying of some institutional foundations for faster development of
physical infrastructure; progress in fiscal consolidation; and the launching of the National Rural
Employment Guarantee (NREG) Scheme for inclusive growth and social security increased the
return in the year 2017-2018. All these factors boost the Indian stock market scaled high. Two
things have happened in this period to push the market to uncharted territory. One is a robust
inflow of foreign money, as more and more FIIs have rushed to pump money into the Indian
market. What is new about these inflows is the decisive move made by Japanese funds to look at
India as an alternative to China, the bulk of the $ 1.9 billion that has flowed into Indian markets in

38
July alone has come from Japanese FIIs, taking the total FII investments in 2017 to around $7
billion. First time BSE crossed 21000 and for the same year market touched low of 15000.
Proving that FIIs net selling increased.

Again there was a decline in the market return in the year 2018-2019. Global crude oil prices
were surging yet again and had touched $78 a barrel due to the tensions in West Asia and the
hurricanes from the Atlantic into the US east coast of the year further surged in crude prices and
oil production and refinery output were disrupted in the affected area. Global liquidity had almost
been drained off following the rate increases in the US, Europe and in Japan. FII flows in 2008, at
about around Rs 53,000 crore, were lower by 25 per cent than in 2007. In this year BSE closes
below 10000.
Year 2019-2020, a golden chance for beginners, and small investors in the starting months, when
estimating factors for this, rupee became strong here. And UPA government formed second time
in the month of May 2019. The single month itself shown gain of 3000 plus points of BSE.
For the year 2020-2021, there is no major falls during this, because among the all economic
factors few have given better result and remaining has given lower than expectations, for this year
inflation played vital role. With the impact of international markets and increase of crude oil
prices at the same time few months rupee is an week side and few months rupee became strong.
With all these factors market moved to bullish trends and again crossed of its previous (2018
January) 21000 levels.

39
 TECHNICAL ANALYSIS

Company:SYNDICATE BANK 532276

od: 02-Dec-2014 to 23-Jan-2015

No. of No. of
Date en High Low Close WAP Total Turnover
Shares Trades

22-Jan- 129 130. 126 127. 127.88 1916 21 245118

21-Jan- 1 1 128 129. 130.0 2476 36 322055
20-Jan- 128. 131 128 129 129.69 1480 23 192002
19-Jan- 129. 130. 127. 128. 128.86 1928 28 248467

16-Jan- 131 1 1 128. 129.7 2774 37 360054

15-Jan- 1 132 129. 131. 131.50 3277 54 430983
14-Jan- 128. 129 125 126 127.11 1961 42 249359

13-Jan- 1 132 127. 128. 129.31 2599 30 336208

12-Jan- 127. 1 126. 131 130.22 2611 40 340113

9-Jan- 1 129. 125. 127 127.05 1992 34 253130

8-Jan- 126. 128 125. 127 126.92 1439 23 182709

7-Jan- 125 126 121 124. 124.19 2755 49 342191

6-Jan- 1 1 124. 125 127.29 2890 41 367996

5-Jan- 134. 134 131 132. 132.85 1893 34 251540

2-Jan- 133. 136 1 133. 134.59 2296 43 309114
1-Jan- 131 135 1 133 134.09 2861 49 383653
31-Dec- 132 132 130. 131 131.93 1803 28 237973
30-Dec- 127 132 125. 131 130.00 3160 50 410933
29-Dec- 1 130. 1 127 128.8 2228 38 287181

26-Dec- 122. 128. 122. 128. 126.15 3509 45 442783

24-Dec- 1 123. 1 122 122.65 1746 26 214173

23-Dec- 124 125 121 122 123.33 2235 35 275738

40
22-Dec- 122 124 1 123 122.71 1563 29 191881
19-Dec- 123 1 121 121 122.80 3417 57 419649
18-Dec- 120 1 120 122. 122.35 3737 79 457332
17-Dec- 116 121. 111. 119. 116.97 4976 106 582136
16-Dec- 1 126 116. 117 120.19 4243 70 509993

15-Dec- 1 130. 125 125 127.70 2382 46 304283

12-Dec- 1 133 1 128. 130.3 2653 44 345985

11-Dec- 135 135 128 131 131.39 3677 60 483171

10-Dec- 126 134. 1 132 130.89 3362 57 440112

9-Dec- 135 1 127 128 131.11 2788 42 365669
8-Dec- 1 138 133 134. 135.91 2620 41 356149

5-Dec- 1 141. 135. 137 139.21 4244 62 590835

4-Dec- 1 141 132. 138. 137.01 4048 56 554636

41
INTERPRETATION:
On open value risen from 129.90 to 127.25 than compare to higher value of EPS 90128.25. Then
coming to lower price from 136.00 to 138.45. Wholly the conclusion is 129.55 raised.

The comings to the volume on the same dates or days volumes are increased. Because on this
session SYNDICATE BANK value is raised i.e. percentage of 10.05%.

42
NO. OF SHARES AND THEIR TURNOVER

No. of No. of
Date Open High Low Close WAP Total Turnover
Shares Trades

22-Jan- 3 327 321. 324 323.79 15619 220 5057610

21-Jan- 319 327 319 325. 325.38 33045 459 10752355
20-Jan- 314. 319. 314. 318. 317.57 16453 268 5225405
19-Jan- 316. 317. 312. 313 314.03 15762 202 4949943

16-Jan- 320. 320. 313 315 315.43 16330 255 5151371

15-Jan- 320 323. 314. 320. 317.90 45945 581 14606184
14-Jan- 304 3 302. 304. 304.73 12303 238 3749343

13-Jan- 307 310. 304 305. 307.90 13125 221 4041474

12-Jan- 3 307 301 307. 305.76 18319 206 5601463
9-Jan- 3 308 3 303 304.42 10730 224 3266711
8-Jan- 305 306 302. 304 304.41 11383 269 3465462
7-Jan- 3 302. 295 300. 300.05 19268 369 5781677

6-Jan- 3 310. 298 299. 304.42 21853 470 6652759

5-Jan- 316 316 310. 312 313.37 18577 238 5821659

2-Jan- 314 3 314 315. 316.58 19117 254 6052249
1-Jan- 3 3 3 313. 313.67 8645 182 2711715

31-Dec- 3 312 3 311. 311.41 7315 149 2278108

30-Dec- 307 310. 305 309 308.37 11025 180 3399880
29-Dec- 308 3 306 307 308.08 10245 157 3156472

26-Dec- 306 309. 306. 307. 307.58 12353 213 3799798

24-Dec- 3 3 305 305. 307.16 12342 222 3791270
23-Dec- 307 312. 306. 307. 309.17 17893 279 5532049

22-Dec- 3 308 303 307. 305.98 14197 206 4344256

19-Dec- 311 3 303. 304. 307.08 18676 289 5735293

18-Dec- 310 312. 304. 307. 308.2 21183 350 6530149

43
 17-Dec- 2 306 287 302. 298.24 36984 676 11030209
16-Dec- 308 311 293. 295 301.2 31090 608 9364865
15-Dec- 308 315 307 310. 312.38 15541 266 4855069
12-Dec- 314 316 309 311 312.73 18157 245 5678281
11-Dec- 313 318. 310. 314. 314.37 17595 300 5531617
10-Dec- 3 317 3 316 311.87 17211 319 5367925

9-Dec- 313 314 305 306 309.33 17378 315 5375797

8-Dec- 3 319. 312 313. 314.91 12574 231 3959914

5-Dec- 3 3 316. 317. 318.75 13572 220 4326425

4-Dec- 319 3 314. 320. 318.46 19581 292 6236082

On open value risen from 326.00 to 324.45 than compare to higher value of EPS 310.29. Then
coming to lower price from 319.60 to 320.25. Wholly the conclusion is 311.14 raised. The
comings to the volume on the same dates or days volumes are increased. Because on this session
STATE BANK OF INDIA value is raised i.e. percentage of 14.57 %.

44
 CHAPTER V
FINDINGS CONCLUSION
AND SUGGESTIONS

45
 FINDINGS:

 Inclusion of the new economy stocks, most of which were over-valued in the BSE index.
 Increased influence of international stock indices, espicially the NASDAQ.
 Day trading increased which led to wild fluctuations in intra-day prices.
 Foreign Institutional Investors (FIIs), exit the markets at the slightest whiff of trouble. This
increases volatility in the stock markets. Domestic investors follow FIIs and emaluate their
investment pattern. If, FIIs buy, everyone buys and if FIIs sell, everyone sells.
 Indian markets have high volume but they lack depth as the volums are contributed by few
institutional participants. Indian markets lack hedge funds and pension funds, whch can take a
long-term view of the markets.
 External factors such as world politics and disturbances, the IT revolution, the information boom
by the business news channels, rising oil prices and apprehensions of rise in international rates
contributed to high volatiliy.
 The Indian Rupee exchange rate depreciated 1.87 percent against the US Dollar during the
February 2022. During the last 12 months, the Indian Rupee exchange rate depreciated 9.78
percent against the US Dollar. Reaching an historical high of 53.72 in December of 2021.
Within two months dollar recorded low of 48.75 in February 2022.
 IIP DATA also a factor for market volatility, increasing IIP numbers are positive impact and
decreased negative impact.
 Changes in interest rates also a cause to fluctuate Indian stock market. Inflation and interest rates
have positive correlation.
 Quarterly financial results of index weighted companies also a cause for index (market)
fluctuations.
 When FII’S net sales increases it means they are in profit booking stage and when net purchases
increases, it means they are accumulating.
 There are so many factors fluctuating Indian stock market, but it’s not possible to measure the
growth/fall with single factor. Because in intraday there are so many factors influencing the
market.
 Every day common factors are international markets, dollar fluctuations, speculation.

46
 SUGGESTION:

This kind of volatility and sudden crash of the market is not a good indicator of sound financial
markets. The following measures are suggested to remove the structural deficiencies of the
market and improve the market mechanism:

 There is lack of depth in the market. The fear of FIIs pulling their money out of the market is
always seen as a big threat. To avoid this, more institutional players such as pension funds are
required to invest in the market and provide it the required depth.
 There is a need for a robust securities lending and short selling infrastructure. It will help the long
term investors to earn on their investments and provide heterogenerity in the market.
 Securities and Exchange Board of India (SEBI) needs to keep a vigil on the sharp rise in any
stock without a reasonable cause. It needs to keep track of the investors in such companies and
trace the source of investment to avoid any type malpractices.
 There is inability of the banking system to turn around the funds quickly. When the Sensex was
falling, the banking could not divert the funds to rescue the investors quickly which led to
margin calls and sudden crash of the market.
 To control insider trading and manipulation of prices, strict regulatory and punitive measures
should be adopted by the SEBI and stock exchanges.
 To avoid confusion among the investors, there should be proper coordination among the stock
exchanges in India. There should not be any overlapping in their areas of operations.
 Investors should take into consideration various things before investing into scripts such as:
 Financial position of the company.
 Liquidity position.
 Past performance of company.
 Brokers should not exceed their trading limit in terms of upper and lower limit.
 Entry levels, the price should not historical highs while entering into that.

47
CONCLUSION:

The behavior of Stock Market and the prices of stocks depend greatly on the speculation of the
investors. So, over- reactions and wrong speculation can give rise to irrational behavior of the
Stock Market. Excessive optimistic speculation of future prospects can raise the prices of stocks
to an extreme high and excessive pessimism on the part of the investors can result in extremely
low prices.

So, it is extremely difficult to make predictions about the Stock Market and the inexperienced
investors who are not that much interested in financial analysis of stocks; rarely get the financial
assistance from the Stock Market at the time of need.

The factors influencing the stock market affect the volatility of the market in which they are
traded. These factors, in turn, are responsible for the development of the stock market in any
country and making it compareable with the global markets. So, stock market development is a
multi-dimensional concept.

Though many of the investors have lost life saving in the recent correction, there is life after the
crash. The Indian growth story is intact with a forecast of over 9% growth for 2021-2022. The
investment pipeline is estimated to be Rs.5, 00,000 crores. The government continues to spend
heavilty on the infrastructure projects. Domestic demand is still robust. Nevertheless, the Indian
stocks will continue to be attractive. Moreover, the fear of recession in the US will force the
global investors to look for alternative investment destinations and India will be the biggest
beneficiary. The only thing to be kept in mind is that greed always leads to devastations. The
investors should not aim for very high returns as the level of returns is always positively
correlated to the level of risk.

48
BIBILIOGRAPHY

49
 BIBILIOGRAPHY

 “Indian Financial System”, V. Pathak,Bharati--Second Edition

 “Capital Markets in the Anuradha Sen and Sandip Lahiri Anand,Rituparna Bhattacharya- BRIC
Economies
 “Money, Banking & International Trade” ------ M.L. Jhingan.

Magazines:

 Cometition Refresher.

WEBSITES:
 www.indiabulls.com
 www.bseindia.com
 www.nseindia.com
 www.investopedia.com
 www.sebi.com
 www.google.com
 www.wikipedia.com

50
ANNEXURE

51
1. What is your age?

a) 18 to 24

b) 25 to 34

c) 35 to 44

d) 45 to 54

2. What is your gender?

a) Female

b) Male

3. When thinking of the stock market and investing, what is your perception?

a) Positive

b) Negative

4. Thinking again of the stock market and investing, do you feel that investing is mostly an
opportunity or mostly a risk?

a) Mostly an opportunity

b) Mostly a risk

5. Do you currently have any type of investment including stocks, bonds, mutual funds,
retirement account, etc.?

a) Yes

b) NO

6. Would you be interested in learning more about investing for yourself?

a) Yes

b) No

7. What is your investment pattern?

a) Short term

b) long term
52
8. . Do you know about the equity market?

a) Yes

b) No

9. What factor influences you to sell your shares of a certain company?

a) Low or no dividend

b) low share price expectation of share price decrease bad market condition

10. Do you participate in general shareholder meeting of the companies in which you invest?

a) Yes

b) no

53