Analysis of Indian Stock Exchange

ANALYSIS OF
INDIAN STOCK EXCHANGES

A training report submitted in partial fulfillment of the requirement for the
degree of
BACHELOR OF BUSINESS
ADMINISTRATION
(2012-2015)
Submitted by:
Gurpreet
Himanshu
Harjinder
Ravinder Rana
Amanjot Kaur
BBA V (SEM)
BABA FARID COLLEGE D E O N , B A T H I N D A
DECLARATION
We hereby declare that the project report entitled ANALYAIA OF INDIAN STOCK
EXCHANGES submitted to Baba Farid College in partial fulfillment of the requirement for the
award of degree of Bachelor of Business Administration is a record of bonafide project work
carried out by us under the guidance of Ms. Abiruchi Bansal. We further declare that all the
particulars given herein are true to best of our knowledge and belief.The assistance and help
during the execution of the project has been fully acknowledged.
Name
Signature
GURPREET
______________________
HIMANSHU
_______________________
HARJINDER
_______________________
RAVINDER RANA
AMANJOT KAUR
________________________
________________________
PREFACE
The successful completion of this project was a unique experience for us because
by visiting many place and interacting various person, we achieved a better
knowledge about this segment. The experience which we gained by doing this
project was essential at this turning point of my carrier this project is being
submitted which content detailed analysis of the research under taken by us. The
research is on the topic Analysis of Indian Stock Exchanges
ACKNOWLEDGEMENT
.
We take this opportunity to express our profound gratitude & deep regards to our faculty
members for their exemplary guidance, monitoring & constant encouragement throughout the
course of this project. The blessing help & guidance given by them time to time shall carry us a
long way in the journey of life on which we are about to embark.
We also take this opportunity to express a deep sense of gratitude to BABA FARID COLLLEGE
for their cordial support, valuable information & guidance, which helped us in completing this
task through various stages
We are obliged to faculty members of BABA FARID COLLEGE for the valuable information
provided by them in their respective fields. We are grateful for their cooperation during the
period of my assignment.
Lastly, we thank almighty, our parents & friends for their constant encouragement without which
this assignment would not be possible
CONTENTS
Sr No.
Topics
1.
Chapter-1
Page No.
1
INTRODUCTION TO TOPIC
2.
3.
4.
Chapter-2 INTRODUCTION TO COMPANY

Chapter-3 OBJECTIVES OF THE STUDY
Chapter-4
DATA
ANALYSIS
AND
INTERPRETATION
5.
Chapter-5
SUGGESTIONS AND LIMITATIONS
6.
Chapter-CONCLUSION
10.
Annexure
82
CHAPTER-
BOMBAY STOCK EXCHANGE

INTRODUCTION TO INDIAN
STOCK EXCHANGE
A stock exchange is a form of exchange which provides services for stock brokers and traders to
buy or sell stocks, bonds, and other securities. Stock exchanges also provide facilities for issue
and redemption of securities and other financial instruments, and capital events including the
payment of income and dividends. Securities traded on a stock exchange include stock issued by
listed companies, unit trusts, derivatives, pooled investment products and bonds. Stock
exchanges often function as "continuous auction" markets, with buyers and sellers
consummating transactions at a central location, such as the floor of the exchange.[2]
To be able to trade a security on a certain stock exchange, it must be listed there. Usually, there is
a central location at least for record keeping, but trade is increasingly less linked to such a
physical place, as modern markets are electronic networks, which gives them advantages of
increased speed and reduced cost of transactions. Trade on an exchange is by members only.
The initial public offering of stocks and bonds to investors is by definition done in the primary
market and subsequent trading is done in the secondary market. A stock exchange is often the
most important component of a stock market. Supply and demand in stock markets are driven by
various factors that, as in all free markets, affect the price of stocks (see stock valuation).
There is usually no compulsion to issue stock via the stock exchange itself, nor must stock be
subsequently traded on the exchange. Such trading is said to be off exchange or over-the-counter.

This is the usual way that derivatives and bonds are traded. Increasingly, stock exchanges are
part of a global market for securities.
The vision and mission of Stock Exchange is:

"Reaching an investors by providing services relating to Capital Market including Trading,
Depository Operations etc. and creating Mass Awareness by way of education and training
in the field of Capital Market.
To educate the investor and to fulfill the gap of skilled work force in the Capital Market
Further, there are 21 Stock Exchange which are operating in the Indian economy. It
includes Bombay Stock Exchange, National Stock Exchange, MCXSX and rest
of these are Regional Stock Exchange

CHAPTER-

ABOUT BOMBAY STOCK EXCHANGE
Introduction
Established in 1875, BSE Ltd. (formerly known as Bombay Stock Exchange Ltd.), is
Asias first Stock Exchange and one of Indias leading exchange groups. Over the
past 137 years, BSE has facilitated the growth of the Indian corporate sector by
providing it an efficient capital-raising platform. Popularly known as BSE, the bourse
was established as "The Native Share & Stock Brokers' Association" in 1875. BSE is
a corporatized and demutualised entity, with a broad shareholder-base which
includes two leading global exchanges, Deutsche Bourse and Singapore Exchange
as strategic partners. BSE provides an efficient and transparent market for trading
in equity, debt instruments, derivatives, mutual funds.
More than 5000 companies are listed on BSE making it world's No. 1 exchange in
terms of listed members. The companies listed on BSE Ltd command a total market
capitalization of USD 1.32 Trillion as of January 2013. It is also one of the worlds
leading exchanges (3rd largest in December 2012) for Index options trading
(Source: World Federation of Exchanges).
BSE also provides a host of other services to capital market participants including
risk management, clearing, settlement, market data services and education. It has a
global reach with customers around the world and a nation-wide presence. BSE
systems and processes are designed to safeguard market integrity, drive the growth
of the Indian capital market and stimulate innovation and competition across all
market segments. BSE is the first exchange in India and second in the world to
obtain an ISO 9001:2000 certification. It is also the first Exchange in the country and
second in the world to receive Information Security Management System Standard
BS 7799-2-2002 certification for its On-Line trading System (BOLT). It operates one
of the most respected capital market educational institutes in the country (the BSE

Institute Ltd.). BSE also provides depository services through its Central Depository
Services Ltd. (CDSL) arm.
BSEs popular equity index - the S&P BSE SENSEX - is India's most widely tracked
stock market benchmark index. It is traded internationally on the EUREX as well as
leading exchanges of the BRCS nations (Brazil, Russia, China and South Africa).
BSE has won several awards and recognitions that acknowledge the work done and
progress made like The Golden Peacock Global CSR Award for its initiatives in
Corporate Social Responsibility, NASSCOM - CNBC-TV18s IT User Awards, 2010 in
Financial Services category, Skoch Virtual Corporation 2010 Award in the BSE STAR
MF category and Responsibility Award (CSR) by the World Council of Corporate
Governance. Its recent milestones include the launching of BRICSMART indices
derivatives, BSE-SME Exchange platform, S&P BSE GREENEX to promote
investments in Green India.
Vision
"Emerge as the premier Indian stock exchange with best-in-class global practice in technology,
products innovation and customer service."
CSR (Corporate Social Responsibility)

Corporate Social Responsibility (CSR) in BSE is aligned with its tradition of creating wealth in
the community with a three pronged focus on Education, Health and the Environment. Besides
funding charitable causes for the elderly and the physically challenged, BSE has been
supporting the rehabilitation and restoration efforts in earthquake-hit communities of Gujarat.
BSE has been awarded the Golden Peacock Global - CSR Award for its initiatives in Corporate
Social Responsibility (CSR) by the World Council of Corporate Governance.
Corporate Structure
Managing Director & CEO - Mr. Ashishkumar Chauhan

Public Interest Director - Mr. Sudhakar Rao, Dr. Sanjiv Misra
,Mr. S.H. Kapadia
Management
Sr.
No.
1
2
3
Name
Mr. Ashishkumar
Chauhan
Mr. Balasubramaniam
V
Mr. Nehal Vora
Designation
PJ. Towers
Floor
Contact No.
MD & CEO
15th
+91 22 2272 8045 / 55
27th
+91 22 2272 8419
24th
+91 22 2272 8108
Chief Business
Officer
Chief Regulatory

Mr. Nayan Mehta
Mr. Kersi Tavadia
Officer
Chief Financial
Officer
Chief Information
Officer
25th
+91 22 2272 8167
22nd
+91 22 2272 8989
ABOUT NATIONAL STOCK EXCHANGE
Introduction
The National Stock Exchange (NSE) is India's leading stock exchange covering various cities
and towns across the country. NSE was set up by leading institutions to provide a modern, fully
automated screen-based trading system with national reach. The Exchange has brought about
unparalleled transparency, speed & efficiency, safety and market integrity. It has set up facilities
that serve as a model for the securities industry in terms of systems, practices and procedures.
NSE has played a catalytic role in reforming the Indian securities market in terms of
microstructure, market practices and trading volumes. The market today uses state-of-art
information technology to provide an efficient and transparent trading, clearing and settlement
mechanism, and has witnessed several innovations in products & services viz. demutualisation of
stock exchange governance, screen based trading, compression of settlement cycles,
dematerialisation and electronic transfer of securities, securities lending and borrowing,
professionalisation of trading members, fine-tuned risk management systems, emergence of
clearing corporations to assume counterparty risks, market of debt and derivative instruments
and intensive use of information technology.
Purpose
Committed to improve the financial well-being of people.
Vision
To continue to be a leader, establish global presence, facilitate the financial well being of people.

Values
NSE is committed to the following core values :
Integrity
Customer focused culture
Trust, respect and care for the individual
Passion for excellence
Teamwork
Corporate Structure
NSE is one of the first de-mutualised stock exchanges in the country, where the ownership and
management of the Exchange is completely divorced from the right to trade on it. Though the
impetus for its establishment came from policy makers in the country, it has been set up as a
public limited company, owned by the leading institutional investors in the country.
From day one, NSE has adopted the form of a demutualised exchange - the ownership,
management and trading is in the hands of three different sets of people. NSE is owned by a set
of leading financial institutions, banks, insurance companies and other financial intermediaries
and is managed by professionals, who do not directly or indirectly trade on the Exchange. This
has completely eliminated any conflict of interest and helped NSE in aggressively pursuing
policies and practices within a public interest framework.
The NSE model however, does not preclude, but in fact accommodates involvement, support and
contribution of trading members in a variety of ways. Its Board comprises of senior executives
from promoter institutions, eminent professionals in the fields of law, economics, accountancy,
finance, taxation, etc, public representatives, nominees of SEBI and one full time executive of
the Exchange.
While the Board deals with broad policy issues, decisions relating to market operations are
delegated by the Board to various committees constituted by it. Such committees includes
representatives from trading members, professionals, the public and the management.The day-today management of the Exchange is delegated to the Managing Director who is supported by a
team of professional staff.

Board of Directors
Sr.No. Name & Company

S. B. EXCHANGE
Mathur
BOMBAYMr.
STOCK
INDIAN STOCK
Former EXCHANGES
Chairman
1
Life Insurance Corporation of
India
Designation
Chairman
Mr. Ravi Narain

Former Managing Director & CEO
National Stock Exchange of India
Limited
Vice Chairman
[Shareholder Director]
Ms. Chitra Ramkrishna

National Stock Exchange of India
Limited
Managing Director & CEO
Mr. Abhay Havaldar

Managing Director - General
Atlantic LLC
Shareholder Director
Mr. S. B. Mainak
Managing Director
Life Insurance Corporation of
India
Mr. Y. H. Malegam
Chairman Emeritus
M/s. S. B. Billimoria & Co.,
Chartered Accountants
Public Interest Director
Dr. KRS Murthy

Professor & Former Director
Indian Institute of Management,
Bangalore
Mr. Prakash Parthasarathy

Chief Investment Officer
Azim Premji Investment Private
Limited
Dr. S. Sadagopan
Director
Indian Institute of Information
Technology, Bangalore
10
Mr. Justice B.N. Srikrishna (Retd.)

Former Judge, Supreme Court of
India
11
Mrs. Pratima M. Umarji

Former Principal Secretary
(Legislation)
Government of Maharashtra

ABOUT MCXSX STOCK EXCHANGE
MCX Stock Exchange Limited (MCX-SX) is recognized by Securities and Exchange Board of
India (SEBI) under Section 4 of Securities Contracts (Regulation) Act, 1956. The Exchange was
notified a recognized stock exchange under Section 2(39) of the Companies Act, 1956 by
Ministry of Corporate Affairs, Govt. of India, on December 21, 2012. Shareholders of the
Exchange include Indias top public sector banks, private sector banks and domestic financial
institutions who, together hold over 88% stake in the Exchange. MCX-SX is subjected to CAG
Audit and has an independent professional management.
In line with global best practices and regulatory requirements, clearing and settlement of trades
done on the Exchange are conducted through a separate clearing corporation MCX-SX
Clearing Corporation Ltd.
MCX-SX offers an electronic, transparent and hi-tech platform for trading in Capital Market,
Futures & Options, Currency Derivatives and Debt Market segments. The Exchange has also
received in-principle approval from SEBI for operational zing SME trading platform. MCX-SX
commenced operations in the Currency Derivatives (CD) Segment on October 7, 2008, under the
regulatory framework of SEBI and Reserve Bank of India (RBI). MCX-SX launched Capital
Market Segment, Futures and Options Segment and flagship index SX40 on February 9, 2013
and commenced trading from February 11, 2013.
Trading in the SX40 index derivatives began from May 15, 2013. SX40, is a free-float based
index consisting of 40 large-cap, liquid stocks representing diverse sectors of the economy. Its
base value is 10,000 and base date is March 31, 2010. The index is designed to be a performance
benchmark and facilitate creation of efficient investment and risk management instruments.
The Debt Market Segment of MCX-SX, was launched on June 7, 2013, and trading commenced
from June 10, 2013. The Exchange started live trading in cash-settled Interest Rate Futures
(IRF), on 10-year Government of India security, in its Currency Derivative Segment from
January 20, 2014. The product provides a better option to hedge against volatile interest rates.

Board of Directors
Mr. Thomas Mathew T - Chairman, Public Interest Director Retired as Current-in-Charge
Chairman of LIC.
Prof. (Mrs.) Ashima Goyal - Vice Chairperson, Public Interest Director
Professor, Indira Gandhi Institute of Development Research.
Mr. D.R. Dogra - Public Interest Director Managing Director & CEO Credit Analysis and
Research Limited.
Mr. Saurabh Sarkar - Managing Director & CEO (Former Managing Director & CEO United
Stock Exchange of India Limited)


ANALYSIS OF INDIAN STOCK EXCHANGES FOR LAST THREE

MONTH
India has become a dominant force when it comes to building global equity wealth. This year as
the global market cap hit $66 trillion, it did so with the help of the tailwind generated by a strong
domestic market performance.
Global equity market cap has risen 6.06% to $66 trillion so far in 2014 and India's market cap
has grown the fastest to $1.5 trillion from $1.1 trillion. The Asian country's contribution was
10%, or $400 billion, to global market cap with the Sensex emerging the world's best-performing
index.
India also attracted the highest FII flows among the emerging markets with over $13 billion
received so far this year.
"The undercurrent of markets is very bullish," said Nirmal Jain, chairman & managing director at
IIFL. "We expect markets to hit new highs going forward, and our March 2015 target is 9,000 for
the Nifty. We expect markets to sustain the current levels, as we see recovery in the economy and
corporate earnings, though there might be minor corrections here and there."
Stocks have gained nearly 50% since the low of 17,903 for the Sensex in August last year. The
victory of Narendra Modi-led BJP in the May 2014 election has provided a major boost to
investors tired of tepid economic growth and a weak government.
'Markets Should Double in Five Years'
The Sensex has climbed 16.5% since Modi's victory on May 16 and it is currently trading at 16.5
times one year forward earnings, the highest among emerging markets. This has caused some
unease among investors who believe stocks are fairly valued and the scope for upside is limited

"I expect that markets should double in the next five years and I would be surprised if this
doesn't happen. I expect money flows to come in from domestic investors, global investors, and
from real estate over this period," said Ramdeo Agrawal, co-founder and joint managing director
at Motilal Oswal Financial Services.
India's GDP grew at 5.7% in the first quarter of the current fiscal year, exceeding market
expectations. The macro-economic data is looking positive, economic activity is expected to
gather steam by 2015 and GDP growth rate might hit the 7% mark in the next two years, some
analysts say.
"We continue to reinforce our message that earnings are set to double over the next four years,
and the market returns could mirror earnings growth," said Jyotivardhan Jaipuria, head of
research at DSP Merrill Lynch.
SENTIMENTS OF THE PEOPLE

During the UPA tenor there had been a strong consumption cycle largely led by rural
consumption demand. Populist measures of the erstwhile government of increasing
subsidies and minimum support prices (MSP) without addressing supply bottlenecks
ensured that the food inflation remained high keeping the overall inflation above the
RBIS
comfort
zone.
High inflation and interest rates made investors park funds in inflation hedge asset
classes like gold and real estate. Government inaction and a scam charged
environment at the backdrop of global uncertainties made the GDP fall from the
record
high
of
11.4%
in
Q1,
2010
to
4.6%
in
2014.
In an environment of slow growth and high inflation, the defensive sectors like
FMCG and Pharma outperformed domestic cyclical. Also in a risk averse
environment, significant flows were witnessed in debt funds despite of the fact that
most failed to beat the consumer inflation index even on a pre-tax basis.
With a stable government in the center, there are reasons to believe now that
financial savings and investment cycle will be back and structural problems related
to inflation will be decisively addressed. Several steps are already announced to
tackle high food inflation like asking states to de-list certain fruits and vegetables
from the APMC Act, re-impose Minimum Export Prices, and release food stock in the
open market to minimal increase in Minimum Support Prices (MSP) for Kharif crop.

Notwithstanding poor monsoon there are reasons to believe that the inflation will
moderate from the current levels towards the end of the fiscal with WPI ending at
5%. On the growth and development front, there are several expectation from the
government like reducing subsidies, expediting environment clearances, boosting
FDI, amending labor and land acquisition laws and promote mining to name a few.
Also government has shown strong intention to remain on the path of fiscal
prudence in the near term. All this bodes well for the economy from a longer term
perspective.
Poor investment demand for gold from economies like India and China, lifting of
import curbs and anticipated dollar rise due to QE taper will all continue to put
pressure on gold prices in the future. Regarding currency while foreign flows had
been strong in both debt and equity, RBI had been using this opportunity to buy
dollars and build forex reserves (over $315 billion currently) and not let rupee
appreciate significantly. On a base case it is expected to be range bound between
58-62
levels ..
What
all
this
means
from
portfolio
perspective
is:
a) Debt will continue to attract flows with rates expected to stay stronger for longer and
accrual funds and high yield bonds likely to do well while duration funds make a case
purely from a tactical allocation perspective with a 18-24months time horizon
b) Equities make a strong case for overweight stance in portfolios despite of the recent
run-up however it can experience interim volatility due to local (Poor rainfall, budget
announcements) and global (Iraq crisis) factors. On a base case market is not expected to
fall below 5-7% from the current levels while on the upside Sensex could touch 27,000
by
the
fiscal
year
end.
Clearly the strategy to adopt is to have a balance between domestic cyclicals and exports
with sectors like Financials, select Capital good stocks, Cement, Pharma and IT.
Considering that midcaps and smallcaps are still trading below their 2008 highs they
make a good case for allocation over pure large caps. A staggered buying approach is
always advised in all market conditions.
c) Gold remains underweight however some allocation is warranted to withstand any
global
uncertainties
that
could
arise
in
the
future
d) In real estate with supplies exceeding demand in both commercial and residential
space, it is expected to under-perform equities in the near term. Having said that, with
expected economic turnaround, this sector continues to look promising from a 3-4 year
horizon

e) On the global front, European equity markets are expected to outperform the US with
its easy monetary policy and gradual economic turnaround. Overall the risk appetite of
the market participants have certainly gone up and current environment looks conducive
to build long term portfolio through higher allocation to growth asset like Equities
keeping the overall investor's risk profile in mind.
IMPACT OF BUDGET AND MONETARY POLICIES
The excitement our media and entire financial industry display over the budget is baffling. Every
year they hype the occasion, as if a life-altering event will occur when the finance minister opens
his bag of tricks and makes some announcements.
Most Indians do not understand budget technicalities. Still, given the hype, many tune in on the
actual day if only to see two things what is cheaper, and do i save any taxes? The answer
every year is no, you dont save much and no, your taxes dont come down much either. Apart
from this, Indians have fun reading announcements like how many more IITs will open, or if
there will be a big statue somewhere.
For the politician, the budget is a chance to score political points. It is a chance to tell people
how generous the government is, and how concerned they are about the welfare of the less
fortunate. Of course, it is the peoples money in the first place that the government collects and
spends. However, it does sound wonder-ful to announce, We will spend thousands of crores for
women and education.
A population too naive to figure out what the budget is about will never get the budget they need
to truly progress. Working out what the budget is about? That sounds terribly boring. Better we
talk about the statue isnt it?

However, if you are still reading, it is imperative every Indian understands what is going on with
our finances, and what can be done to make our lives better. The budget is a blueprint of how the
government will earn and spend its money.
In terms of numbers, the Centre earns around Rs 12 lakh crore a year. For simplicitys sake,
imagine the government to be a person called Gopi who earns Rs 12 lakh a year. Gopis salary
has risen well, it is up from around Rs 9 lakh annually three years ago. However, Gopi always
spends a lot more than he earns. Three years back he used to spend Rs 14 lakh a year. Today he
spends Rs 18 lakh a year.
Every year, to fund this deficit, he borrows and prints money. This creates two major problems.
One, it reduces the value of money, causing constant high inflation. Two, it increases interest
rates for everyone else, making it expensive for business to borrow and prevents them from
investing much.
Inflation, often the top issue for citizens, cannot be solved until this income vs expense gap is
narrowed. To do this the government has to make more money and/or reduce expenses. Sadly,
there is little wiggle room on expenses. Subsidies and defence, even though expensive, are too
sensitive to touch. Interest payments based on previous borrowings cant be reduced. These items
are the bulk of expenses.
There is thus only one way to fix Indias inflation and growth woes. It is to improve business and
consumer sentiment. The solutions have been prescribed everywhere whether they are simpler
taxes, easier regulations or the government stepping back from smothering business.
The coalition-hobbled, corruption-tainted UPA, people thought, was in an unfixable policy
paralysis. However in what was a surprise to many even the current government didnt
announce measures that would dramatically improve business sentiment, at least in this budget.
The pro-development, pro-business, pro-youth, pro-growth sarkar also presented a budget that
was more status quoist than revolutionary. It raises some existential questions. Is it so scary even
for a government in absolute majority to change things in India, for fear of negative political

fallout? Do Indians reward politicians who do not rock the boat? Do we citizens actually feel the
budget is handout time, and not the time to truly fix what is wrong?
We must fix our finances. What is needed is a sure, solid sign of support for broad business activity (not to be confused with government-business nexus). A low, simple and uniform GST will
help. Reducing or perhaps even eliminating capital gains tax will make India a good investment
destination. A few SEZs, which have laws as free and modern as the financial centres of the
world, will help. For instance, it would be a wonderful gift to Seemandhra if we allowed them to
make one of their cities the next Singapore.
Also, the government can divest and liquidate dead assets more. For instance, why does the
government sit on so much land, especially when it is in a near-debt trap? Does the government
really need to run each and every train in India?
The current budget did not answer all this to the extent required. The short time period since the
government took over may be cited as a reason. However, it would be good to know a date after
which we can consider the government settled in and open to judgment.
One only hopes the desire for control, hesitation to rock the boat and insecurity about political
fallouts dont prevent the government from performing to its full potential. In fact, radical but
good decisions the government takes will find tremendous support in traditional and social
media. The two-month-old government is playing its game too safe.It has swings, nature trails,
flowerbeds, sports facilities and walking tracks. Everything is wonderful, except for one thing:
Kids dont come to play there. This is because the park is mostly used by senior citizens, whom
the kids refer to as uncles. Over a hundred uncles use the park for their morning/evening walks,
society meetings and yoga classes. Each uncle also carries a stick, and uses it on the few kids
who happen to venture into the park. If a kid jumps too much, squeals in delight, climbs up a tree
or plays cricket, the uncles whack the kids. After all, the uncles feel, the park must be kept in
order. There is even a microphone system installed that warns kids to behave.

As expected, the kids soon abandon the park. They go across town to China Park, where they are
made to feel welcome. There are rules in that park too kids are told to keep the place clean
and not hurt anyone. But apart from that, they are encouraged to have fun. The only few kids
who still use India Park are those who have figured out how to manage the uncles. Whenever
they come to play, they bring treats for the uncles a box of sweets, cold drinks or newspapers.
Uncles then leave them alone for a bit. However, the number of kids doing this is small, as
bribing uncles is not what most good kids do. India Park, hence, is mostly empty and underutilized.
Then the uncles of India Park start wondering why so few kids come to play there while twenty
times the number go to China Park? Uncles have meetings, sticks kept in their lap, to discuss the
solution. They put up huge signs outside the park saying Kids Welcome. However, nothing
seems to change.
In the above story, replace uncles with the Indian Government, kids with Foreign Direct
Investors, fun with legitimate profit and India Park with India. This sums up how we approach
the global investor community. We want them here, but we want to beat them with a stick and
shout at them the moment they start having some fun (or earn a reward, in terms of legitimate
profits).
This is why we have a long way to go to achieve the PMs Make in India slogan. The hardest
part in achieving this is not the manufacturing infrastructure we need to set up; it is the control
freak mindset that exists in our power corridors (or rather in any Indian entity with power).
So we say we will never use the retrospective tax laws (which effectively allow the government
to change tax laws for previous years and take more money), but we dont remove the law either.
The uncles say, We will keep the stick, but we will never use it. Well, maybe not today but what
if another uncle comes tomorrow? Are the rules going to depend on the uncles personality? We
want companies across the world to invest here, but the government places so many controls and
permissions that it effectively controls every business. We call it free-market capitalism, but in
reality it is state-controlled capitalism. The only way the uncles will let you do business is if you

keep giving them enough treats. This is how India has been run since Independence, and that is
why it is difficult to change the mindset. The unfortunate part is this uncle-and-stick model keeps
the park empty. If investors dont come, we dont have jobs or growth. Kids can play in other
parks. Asian economies, Eastern Europe and Latin America are all competing for investor dollars
and to be manufacturing hubs. The only way the investors will come is if the rules are clear,
simple and not politician-personality-dependant in spirit, writing and practice.
MONETARY POLICIES
Current RBI Policy and Reserve rate
REPO RATE
8%
REVERSE REPO RATE
7%
CRR
4%
SLR
22.5%
MSF
9%
BANK RATE
9%
FDI LIMITS IN VARIOUS SECTORS

DEFENCE
49%

INSURANCE
49%
PUBLIC SEC. BANK
20%
PRIVATE SEC BANK
74%
MULTI BRAND
51%
SINGLE BRAND
100%
Impact of Inflation
RETAIL INFLATION IN MARCH INCHES UPTO 8.31 PER CENT: Retail inflation in
March 2014 has slightly gone upto 8.31 per cent from 8.03 percent registered in February 2014.
Central statistical Organization (CSO) , the provisional annual inflation rate based on all India
General Consumer Price Index (combined) for March 2014 on point to point basis (over March
2013) is 8.31 percent as compared to 8.03 per cent for February 2014.
PRIVATE SECTOR ACCOUNTS FOR 62% SHARE IN INVESTMENTS ATTRACHED
BY INDIA- ASSOCHAM: Assocham has come out with the view that private sector accounts
more share in investment attracted by India. According to ASSOCHAM study results the private
sector accounts for over 62 % of the total outstanding investments attracted by India worth about
Rs 122 lakh crore as of December 2012.
Impact of new SEBI guidelines on the market trends

With the 30 May deadline for stock exchanges to meet new net worth and trading norms looming
large, 15 of the 20 stock exchanges in the country have opted to exit the business altogether.
According to two people directly familiar with the matter, including an official of Securities and
Exchange Board of India (Sebi), 11 regional stock exchanges (RSEs) have already submitted
their exit applications to Sebi, while the boards of four other exchanges will be meeting later this

month to consider the resolutions related to closure of business. Neither of the two people wished
to be identified. The Bombay Stock Exchange (BSE), United Stock Exchange (which agreed to
merge with BSE), MCX Stock Exchange Ltd (MCX-SX), National Stock Exchange (NSE) and
the Calcutta Stock Exchange will continue in business, said the first person. Of the remaining 15
stock exchanges, 11 have already applied to exit the business, said this person. The other four are
also working towards this, he added. The Madras Stock Exchange is convening meeting for
passing the resolution for an exit. Ahmedabad Stock Exchange and Delhi Stock Exchange are
also convening the meeting for an exit. The MPSE (Madhya Pradesh Stock Exchange Ltd) is also
working on an exit. Sebis new norms for stock exchanges mandate minimum net-worth of
Rs.100 crore and an annual trading of Rs.1,000 crore. The stock market regulator gave the
recognized stock exchanges two years to comply or exit the business. Ramanatha Kotagal,
managing director of Madras Stock Exchange, said in an e-mail the exchange is holding an
extraordinary general meeting on 26 May, where shareholders would deliberate possible exit
from the business. The regional stock exchanges in Jaipur, Cochin, Delhi, Vadodara, Madhya
Pradesh, Ludhiana, Pune, Bhubhaneswar, the Inter Connected Stock Exchange Ltd and Uttar
Pradesh did not respond to e-mails seeking comment. According to the monthly bulletin released
by Sebi in April, other than BSE, NSE and MCX-SX, all equity exchanges reported zero volume
of trading in March. Indeed, for all of 2013-14, all regional stock exchanges reported zero
turnover, Sebi data shows. Experts say that the exit of regional exchanges is inevitable as
national exchanges such as BSE and NSE have expanded their reach across the countrymaking
regional bourses less relevant. In todays connected world, staying financially viable is very
difficult for the regional stock exchanges. They were launched in a different era when BSE and
NSE did not have reach, which they boast of today. The regulator should see to it that while the
regional exchanges exit the business, the companies listed on such exchanges and investors do
not get affected, said Rajnikant Patel, a former managing director and chief executive officer of
the BSE. According to the second person familiar with the development, some exchanges tried
seeking legal recourse to save themselves from the de-recognition, but the courts refused any
kind of relief. With the courts firmly telling the bourses to comply with the Sebi norms or face
action, the process of exit was duly initiated by boards of the regional bourses, this person said.
Dharmishta Raval, former executive director in-charge of Sebis legal cell, confirmed that
Vadodara Stock Exchange and the brokers representing Ahmedabad Stock Exchange filed

separate petitions in the Gujarat High Court, challenging the process and the regulators powers
to de-recognize an exchange.
Share Market trends of BSE of last three

Months




CHAPTER-

OBJECTIVES OF THE STUDY

Each research study has its own specific purpose. It is like to discover to question through the
application of specific procedure. But the main aim of our research to find out the truth that is
hidden and which has not been discovered as yet. Our research study following objectives:-
The Main objectives of the study are:

To study the erratic behavior of Indian stock exchanges from the day our
new Prime Minister has hold his office.

CHAPTER-
Research Methodology:
Research methodology refers to use the methods or techniques, which will be used by a
researcher in a research or study. Research is a systematic method of finding solutions to

problems. It is essentially an investigation, a recording and an analysis of evidence for the

purpose of gaining knowledge.
According to Clifford woody, research comprises of defining and redefining problem,
Formulating hypothesis or suggested solutions, collecting, organizing and evaluating data,
Reaching conclusions, testing conclusions to determine whether they fit the formulated
Hypothesis
The objectives of the study were fulfilled using following methodology during the study and
report preparation.
Research Design
It is the basic frame work, which provides guidelines for the rest of the research process.
It is the blue print according to which the research is conducted. It specifies the methods of data
collection and their analysis. It facilitates smooth sailing of the various research operations,
thereby making research as efficient as possible yielding as much information as possible. It is a
specification of methods & procedures for acquiring the information needed. Research design
stands for advance planning of the methods to be adopted for collecting the relevant data and
techniques to be used in their analysis, keeping in view the objective of the research and the
availability of staff, time & money.
This research is based Descriptive research. These are those studies which are concerned with
describing the characteristics of a particular individual, or of a group, whereas diagnostic
research studies determine the frequency with which something occur or its association with
something else. The studies concerned with specific predictions, with narration of facts and
characteristics concerning individual, group or situation are all example of descriptive research
design studies. Most of social research comes under this category.
SOURES OF DATA COLLECTION

The data has been collected from the following sources:1. Primary data
2. Secondary data

Primary data
In this study the questionnaire method have been used to collect primary data.
Secondary data
Secondary means which are already available like annual report, magazines, internet, books etc.
Sampling Plan
a. Sampling units it consist of investors.
b. Sampling size 50 investors were questioned.

CHAPTER-
1.) Are you familiar with stock exchange?

Respondents were asked about weather they are aware about stock exchange or not and
the result is as follows:OPTIONS
YES
RESPONSE
48
PERCENTAGE
96

NO
TOTAL
2
50
4
100
AWARENESS OF STOCK EXCHANGE
2
YES
NO
48
INTERPRETATION:- Almost all the respondents were aware about the stock exchange.
But still there are few people who are still not aware about the stock exchange.
2.) Which type of Indian Economy is there?

Respondents were asked about which type of economy does exist in india now a days.

OPTIONS
Saving Based Economy
Expenditure Based Economy
Total
RESPONSE
45
5
50
PERCENTAGE
90
10
100
TYPE OF INDIAN ECONOMY
5
Saving based
Expenditure based
45
INTERPRETATION:- Most number of the respondents said that there exists saving based
economy in india now a days, but there are still few people who think of expenditure
based economy.
3.) Do you invest in share market or not?

The respondents were asked weather they spend there savings in the share market or not
and the response is as follows:-

OPTIONS
YES
NO
TOTAL
RESPONSE
45
3
48
PERCENTAGE
94
6
100
Column1
3
YES
NO
45
INTERPRETATION:- Again most of the respondents said that they invest in share
market, but again there are still those people who do not invest in share market.
4.) Normally what hits more frequently to the television screens?

Respondents were asked about what hits more frequently in there television screens and
the response is as follows:-

OPTIONS
MARKET TRENDS
GURBANI LIVE
SPORTS
MOVIES
TOTAL
RESPONSE
40
4
3
3
50
PERCENTAGE
80
8
6
6
100
WHAT HITS MORE FREQUENTLY
3
MARKET TRENDS
GURBANI LIVE
SPORTS
MOVIES
40
INTERPRETATION:- from the total sample size 40 of the respondents said that market
trends hits frequently on there television screens. This shows that people are more
interested in share market now a days.
5.) Which stock exchange do you prefer?

Respondents were asked to tell that in which stock market do they invest and the
response is as follows:-

OPTIONS
NSE
BSE
MCXSX
RSE
TOTAL
RESPONSE
14
31
1
2
48
PERCENTAGE
29
65
2
4
100
STOCK EXCHANGE PREFFERED

1 2
14
NSE
BSE
MCX'SX
31
RSE
INTERPRETATION:- 31 respondents said that they prefer BSE for investment while the
response for other stock exchange was 14, 2, 1 for NSE, MCXSX, RSE respectively.
6.) The gradual improvements in the market are due to?

The respondents were asked to tell the reason behind the gradual improvements in the
market and the response is as follows:OPTIONS
NEW GOVERENMENT
HOLD OF GOVERENMENT
IN PARLIAMENT
WEAK OPPOSITION
INFLATION
TOTAL
RESPONSE
14
12
PERCENTAGE
29
25
16
6
48
33
13
100
REASON FOR IMPROVEMENT

6
14
NEW GOVERENMENT
HOLD OF GOVERENMENT
WEAK OPPOSITION
INFLATION
16
12
INTERPRETATION:- 1/3 of the respondents say that the reason behind improvement in
market is weak opposition. But around about half of the respondents say that the reason is
new government and there hold in the parliament.
7.) To what extent you think the new budget has impacted this market trends?

Respondents were asked weather new budget has impacted the market trends to what
extent and the response was as follows:OPTIONS
GREAT EXTENT
SOME EXTENT
NO IMPACT
CANT SAY
TOTAL
RESPONSE
9
15
14
10
48
PERCENTAGE
19
31
29
21
100
IMPACT OF NEW BUDGET
10
GREAT EXTENT
SOME EXTENT
NO IMPACT
CAN'T SAY
14
15
INTERPRETATION:- 31% of the respondents say that the new budget had an impact on
the market trends, while 29% of the respondents say that there is no impact on the market
trends with new budget policy.
8.) Which factor effected the most for the erratic behaviour in Indian stock exchange?

Respondents were asked to tell about wich factor affected the most in the behaviour of
the stock exchange and the response was as follows:OPTIONS
MONETARY
FISCAL
TOTAL
RESPONSE
23
25
48
PERCENTAGE
48
52
100
FACTOR EFFECTED
MONETARY
25
23
FISCAL
INTERPRETATION:- With this data we can not say exactly which policy effected the
most in the behaviour of the stock exchange but the result is that fiscal policy has the
upper hand over monetary policy.
9.) Do you think the slight change in the market trend is due to new SEBI guidelines towards
Regional Stock Exchange?

Respondents were asked weather the change in the market trend is due to change in RSE
and the response is as follows:OPTIONS
YES
NO
TOTAL
RESPONSE
40
8
48
PERCENTAGE
83
17
100
Sales
8
YES
NO
40
INTERPRETATION:- 83% of the respondents said that thechange in the market trends is
due to the change in the policy towards Regional Stock Exchange. But 17% of the
respondents does not agree with this statement.
10.)
When does the global economy impact in the Indian economy?

Respondents were asked when will the global economy impact the Indian
economy and the response was as follows:OPTIONS
CRISIS IN FOREIGN
ECONOMY
WAR IN FOREIGN
ECONOMY
EXPOSURE OF INDIAN
COMPANY TO MNC
EXPOSURE TO FOREIGN
ECONOMY
TOTAL
RESPONSE
15
PERCENTAGE
31
10
21
18
37
11
48
100
GLOBAL ECONOMY IN INDIAN ECONOMY

5
15
CRISIS
WAR
EXPOSURE TO MNC
EXPOSURE TO FOREIGN
INCOME
18
10
INTERPRETATION:- 18 respondents say that with the exposure of Indian company to

the multinational company the global economy will impact the Indian economy while 15,
5, 10 respondents say that there will be impact because of crisis, exposure to foreign
economy and war respectively.
11.)
Do you agree with the statement that market will double in next five years?

Respondents were asked weather they agree on the statement that market will bw double in next
5 years or not and the response was as follows:OPTIONS
STRONGLY AGREE
AGREE
STRONGLE DISAGREE
DISAGREE
NEUTRAL
TOTAL
RESPONSE
24
12
3
8
1
48
PERCENTAGE
50
25
6
16
3
100
Sales
1
STRONGLY AGREE
AGREE
STRONGLY DISAGREE
3
24
DISAGREE
NEUTRAL
12
INTERPRETATION:- 50% of the respondents strongly agree with the above mentioned
statement while 25% of the respondents agree with the statement. But there are some respondets
also who disagree with the statement also 22% to be prcised and there is 1 respondent who has a
neutral reaction.

12.)
There is regular growth in SENSEX index from last three months will it be a boon
or bane for the Indian economy? How?
The respondents were asked about the growth of SENSEX will be a boon or bane for Indian
economy and the response is as follows:OPTIONS
BOON
BANE
TOTAL
RESPONSE
42
6
48
PERCENTAGE
87
13
100
GROWTH- BOON OR BANE

6
BOON
BANE
42
INTERPRETATION:- 87% of the respondents say that the growth in SENSEX will be a boon for
the Indian economy but 13% of the respondents have another ideas regarding this. They say that
it will be bane for the Indian economy.

CHAPTER-

FINDINGS
Most of the respondents are aware of the Share market and about its behavior and they
are optimistic towards the economy of our country.
There are more number of male respondents as compare to female respondents.
The majority of person relay on BSE and NSE for their investment.
Investors believe that the erratic behavior in Indian stock exchanges is sign of prosperity
in near future.
The erratic behavior in Indian stock exchanges are due high expectation of the people
from new government, inflation and new monetary fiscal policies

LIMITATIONS OF THE STUDY
The study suffered from certain limitations which are as under:
Whole area is not covered in this project only 50 respondents are representative for
complete area.
The overall sample was restricted to respondents of Bathinda and Sri Muktsar Sahib area.
It was difficult to convince the investors that information provided by them was to be
used for study purpose only.

SUGGESTIONS AND RECOMMENDATIONS

There should be implementation of Tobin Tax(a small tax on financial
transaction)
There must be global capital flows (for example Indian invested in housing
sector in Dubai and America during 2008)
People should invest more in the share markets for getting high returns and
for contributing their part in economy of our country.
CONCLUSION


CHAPTER-9

BIBLIOGRAPHY
1 BOOKS
2 WEBSITES
www.indiabulls.com
www.moneycontrol.com
www.nseindia.com
www.bseindia.com
www.sebi.com

ANNEXURE

QUESTIONNAIRE
(Analysis of Indian Stock exchange - for last three months)
Name
Age
Gender:-
Male (
Current status :-
Student (
Female (
)
Serviceman (
Professional (
Monthly Income (Rs.) :-
Businessman (
Below 5000 (
5001-15000 (
15001-25000 (
Above 250000 (
1) Are you familiar with the word Stock exchange?

a) Yes
b) No
2) Which type of Indian Economy is?

a) Saving Based Economy b) Expenditure Based Economy
3) Do you invest your savings in the share market?

a) Yes
b) No
4) Normally what hits more frequently to the television screen?

a) Mark trends(index)
c) Sports
b) Gurbani Live
d) Movies
5) Which Stock exchange do you prefer for investment ?
a) National stock exchange c) MCXSX stock exchange
b) Bombay stock exchange d) Regional stock exchange
)
)
)
)

6) The Gradual improvements in the market trend are due to:a) Sentiments of the people for new Government
b) Strong Hold of the Government in the Parliament
c) Weak Opposition in the Parliament
d) Inflation
7) To what extent you think the new budget had impacted this market trends:a) To great extent
c) No impact
b) To some extent
d) Cannot say anything
8) Which factor affected the most for the erratic behavior in Indian stock exchanges?
a) Monetary policies
b) Fiscal policies
9) Do you think that the slight rise in the market trends is due to new SEBI guidelines
towards Regional Stock Exchanges.( for example a new guideline 100cr net worth and
1000cr annual trading turnover on its own trading is must for each and every stock
exchange)
a) Yes
b) No
10) When does the global economy impact to the Indian economy?
a) Crisis in foreign economy
b) War in foreign economy
c) Exposure of Indian companies to multinational companies
d) Exposure to foreign economy
11) Do you agree/disagree with the statement given by the Ramdeo Agrawal(co-founder and
joint managing director at Motilal Oswal Financial Services) that Market should double
in next five years
a) Strongly Agree
c) Strongly Disagree
e) Neutral
b) Agree
d) Disagree
12) There is a regular growth in SENSEX index from the last three months .Will it be a boon
or bane for the Indian economy? How?
_____________________________________________________________________
_____________________________________________________________________


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Analysis of Indian Stock Exchange

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ANALYSIS OF

INDIAN STOCK EXCHANGES

BABA FARID COLLEGE D E O N , B A T H I N D A

Chapter-2 INTRODUCTION TO COMPANY

BOMBAY STOCK EXCHANGE

BOMBAY STOCK EXCHANGE

The vision and mission of Stock Exchange is:

BOMBAY STOCK EXCHANGE

BOMBAY STOCK EXCHANGE

ABOUT BOMBAY STOCK EXCHANGE

BOMBAY STOCK EXCHANGE

CSR (Corporate Social Responsibility)

Managing Director & CEO - Mr. Ashishkumar Chauhan

+91 22 2272 8045 / 55

+91 22 2272 8419

+91 22 2272 8108

BOMBAY STOCK EXCHANGE

Mr. Nayan Mehta

Mr. Kersi Tavadia

+91 22 2272 8167

+91 22 2272 8989

ABOUT NATIONAL STOCK EXCHANGE

BOMBAY STOCK EXCHANGE

BOMBAY STOCK EXCHANGE

Sr.No. Name & Company

Mr. Ravi Narain

Ms. Chitra Ramkrishna

Managing Director & CEO

Mr. Abhay Havaldar

Public Interest Director

Dr. KRS Murthy

Public Interest Director

Mr. Prakash Parthasarathy

Public Interest Director

Mr. Justice B.N. Srikrishna (Retd.)

Public Interest Director

Mrs. Pratima M. Umarji

Public Interest Director

BOMBAY STOCK EXCHANGE

ABOUT MCXSX STOCK EXCHANGE

BOMBAY STOCK EXCHANGE

BOMBAY STOCK EXCHANGE

BOMBAY STOCK EXCHANGE