Investment Perspective in Indian Stock Market
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INVESTMENT PERSPECTIVE IN INDIAN STOCK MARKET
ANGEL BROKING LIMITED
Submitted by:MOHAMMAD ALI MBA-International Business Enrolment No.: A7002008002 International Business, Finance
Under guidance of:Industry guide: Mr. Himanshu Singh Designation: Equity Advisor Angel Broking Ltd. Faculty guide: Dr. Amit K Sinha Senior Lecturer AMITY BUSINESS SCHOOL
SUMMER INTERNSHIP REPORT IN PARTIAL FULFILLMENT OF THE AWARD OF FULL TIME MASTERS IN BUSINESS ADMINISTRATION (2008-10)
AMITY BUSINESS SCHOOL AMITY UNIVERSITY UTTAR PRADESH LUCKNOW
Certified that this report is prepared based on the dissertation report undertaken by me in Angel Broking ,under the able guidance of Dr. Amit K. Sinha in partial fulfillment of the requirement for award of degree of Master of Business Administration from Amity University Uttar Pradesh .
Signature: Name: Mohammad Ali Enrollment: A7002008002
Signature: Dr. Amit K. Sinha Faculty guide
Signature: Prof. R.P Singh Director A.B.S
Certificate of faculty Guide
This is to certify that Mr. Mohammad Ali student of MBA 3rd semester of Amity University; Uttar Pradesh has under gone a dissertation report under my guidance. The report entitled Risk management in portfolio selection has been completed by the student to my entire satisfaction.
Date: Dr. Amit K. Sinha Faculty Guide
I here by declare that this dissertation report submitted by me to Amity Business School is my own and it has not been submitted to any other university or published at any time before.
Mohammad Ali Place: Lucknow Date:
An undertaking of work like this is never an outcome of a single person rather it bears the imprints of a number of people who directly or indirectly helped me in completing my summer training. I would be failing in my duties dissertation real, educative and pleasurable. It is very difficult to express ones feeling in words but the formality reminds that one should act to extend possible. I found no suitable words to express my profound indebtedness and heart felt sense gratitude to Dr. Amit K. Sinha, Senior Lecturer, A.B.S, Mr. Ejaz Mohyi, Branch Head, Angel Broking Ltd, Mr. Ali Asad, Senior Sales Executive, Angel Broking Ltd. and Mr. Himanshu Singh, Equity Advisor, Angel Broking Ltd for there prestigious guidance, support and supervision during that period. It was there cheerful and cooperative autonomy, regular encouragement, morale boosting and infinite assisting of every kind which made my dissertation a fruitful, pleasant and lifetime experience. At this junction I would like to express my gratitude from deepest of my heart to my parents, guardians and friends who initiates me and provide me the congenial help and atmosphere during my training period.
Investment is a term frequently used in the fields of economics, business management and finance. It can mean savings alone, or savings made through delayed consumption. Investment means buying securities or other monetary or paper (financial) assets in the money markets or capital markets, or in fairly liquid real assets, such as Gold as an investment, real estate etc. Types of financial investments include shares and other equity investments and bonds. Equity investments generally refer to the buying and holding of shares of stock on a stock market by individuals and funds in anticipation of income from dividends and capital gain as the value of stock rises.
To invest into stock market or other securities is quite a very critical decision every investor should note before taking a step into the stock market. The benefits and profits in the stock market is quite enormous. The stock market is the only business transaction that its resource is yet untapped, an investor stand a great chance of profiting unlimitedly in trading stock, as well as losing every thing he has worked for all his life into stock market just in a twinkle of eye. That is the reason why every investor should think twice and think very carefully before investing into stock market, to tell you the fact, the stock market is not for every body. The stock market is meant for people who are wiling to take risk, who have extra to spend, who are credit free, who are independent, who are financially free and people who are strong and willing to stand any financial risk situation. Before you invest into stock, you need to know your self and most importantly your financial status, because stock trading is very volatile, risky and that is more reason why you need to check yourself and most importantly your financial status, because stock trading is very volatile, risky and that is the more reason why you need to check yourself and your background before investing your money to avoid losing your hard earned money.7
Investment Plan: Every beginner needs to have an investing plan, weather you are beginning to trade/invest into stocks, bonds, mutual funds, futures, forex, real estate, equity and much other financial market. You need to have a plan point of how much risk you are willing to take at the starting point, and the investing plan is How Much Are You Willing To Risk on your starting point. You need to start investing from some where, but where it will not affect your financial status even if you lose your capital margin into the investment. Before you invest your money, make sure to start with as little as you can afford to risk, that will make you not to lose all you have and at the same time, it will prompt you more opportunity to harness on the transaction to ascertain if it actually worth investing your hard earned money into such business. Dont risk investing the amount of money you can not afford to lose, all security transactions are very profiting but at the same time you can lose so much into the transactions as well. The Beginners Target Of Investing: The target of every investor is to make profit, and by that you need to invest your money into a very lucrative and legitimate kind of transactions that will yield better interests and profits, as a beginner, you dont know the most lucrative and legitimate transactions to invest your money yet, but before you invest, make research about the business to know certain things before you jump into such transaction, but it has been proven that security investments like stock, bonds, mutual funds, equity, futures, forex and other financial transactions yields more better profits in short time investment than other investments, which is the more reason why investors are destinating to invest into financial/securities in order to reap from the untaped profiting ventures. Because of the volatile in the security transactions, prices tend to rise over time, which gradually increasing your money to profit, in this aspect you have benefited from the investment when the prices ascends up. It can also fall over time as well as decreasing the margin of your investment; in this aspect you are losing your money into the investment when the prices descend down. Therefore, investing your money8
into transactions is not only to make profits but it will also give you the opportunity to make turn over of your money, which also increases the weight and value of the money you have into more strong money. However, investments require strategies, good decisions, careful planning and patience in order to make a better return in your transactions.
CONTENTSParticulars Students certificate Certificate of Faculty Guide Declaration Certificate of the Company Acknowledgement Introduction Chapter I Significance and History of the study Chapter II Introduction of the company Chapter III Indian stock market over the years Survey of stock market awareness Chapter IV Findings, Conclusions and Suggestions ANNEXTURE I ANNEXTURE II ANNEXTURE III BIBLOGRAPHY 63 65 72 79 58 35 16 pages 2 3 4 5 6 7 11
SIGNIFICANCE AND HISTORY OF THE STUDYIndian stock marketIn order to appreciate the emerging role of stock exchanges in India it is apt to start with the historical perspective and a comparative picture with other stock exchanges in the world. The stock exchange is an association of member brokers for the purpose of facilitating and regulating trading in securities. It is thus, a self regulating organization, be it a company or association. As the securities trading developed in India since 1875, it was a private enterprise of an unregulated nature. The first attempt at regulation was by Securities Contracts Control Act of Bombay 1925, passed by the erstwhile Bombay Presidency. There was resistance from the stock exchanges for government control even at that time. These exchanges had a mushroom growth during the war time of forties as private clubs. There were as many as 21 exchanges in 1945. At that time securities trading were a state subject but with the adoption of Indian Constitution in 1951, it became a Central subject. It took nearly six years after that to pass the necessary central legislation in 1956 in the form of Securities Contracts (Regulations) Act. In the socialistic patter of society adopted by the government for planned development of the economy in 1951, the role of stock exchange received no significant attention and they were left with the minimum government regulation under the above Act and the rules made there under. The traditional emphasis was on self regulation by the stock exchanges themselves with the result that the government had rarely used the full range of powers bestowed on them except for one or two occasions in war time. So the history of the growth of stock market movement in India was characterized by three main features. 1. Resistance to government