UNIVERSITY OF MUMBAI

PROJECT REPORT ON
A SYUDY INTO THE CHANGING TRENDS IN THE CAPITAL
MARKET

MASTER OF COMMERCE (Banking & Finance)

SUBJECT: RESEARCH METHODOLOGY
SEMESTER VI
2015-16
In Partial Fulfillment of the Requirement under Semester Based
Credit and Grading System for Post Graduates (PG)
Programme under Faculty of Commerce

SUBMITTED BY
PARSHURAM .B. OMKAR

Roll No: 38

PROJECT GUIDE
Subject Teacher name
Dr. RAJESHWARY G.

K.P.B HINDUJA COLLEGE OF COMMERCE

315, NEW CHARNI ROAD, MUMBAI-400 004
4th SEMESTER

A STUDY OF CHANGING TRENDS IN THE CAPITAL MARKET

SUBMITTED BY
PARSHURAM OMKAR
Roll No: 38

01:2008

Smt. P.D. Hinduja Trusts

K.P.B. HINDUJA COLLEGE OF COMMERCE

315, New Charni Road, Mumbai 400 004 Tel.: 022- 40989000 Fax: 2385 93 97. Email:

NAAC Re-Accredited A

THE BEST COLLEGE OF UNIVERSITY OF MUMBAI FOR THE ACADEMIC YEAR 2010
Prin. Dr. Minu Madlani (M. Com., Ph. D.)

CERTIFICATE

This is to certify that Mr. PARSHURAM OMKAR

of

M.Com (Banking &

Finance) Semester 4th [2015-2016] has successfully completed the Project on A

STUDY OF CHANGING TRENDS IN CAPITAL MARKET under the
guidance of Dr. RAJESHWARY G.

________________
Project Guide
coordinator

________________
Co-

________________

________________

Internal Examiner

External Examiner

________________

________________

Principal
Seal

College

DECLARATION

I Mr. PARSHURAM OMKAR student of M.Com-Banking & Finance, 4th

semester (2015-2016), hereby declare that I have completed the project on A
STUDY OF CHANGING TRENDS IN CAPITAL MARKET

The information submitted is true and original copy to the best of our knowledge.

(Signature)
Student

TABLE OF CONTENTS

SR.
NO

PARTICULARS

PAGE NO.

INTRODUCTION

OBJECTIVES OF THE STUDY

2-3

HYPOTHESIS

4-11

NEED OF THE STUDY

12-13

RESEARCH METHODOLOGY

14-16

LIMITATION OF THE STUDY

17

REVIEW OF LITREATURE

18-20

REFERENCE

21-23

SECONDARY DATA

24

10

BIBILOGRAPHY

11

ANNEXURE

25

CHAPTER 1
INTRODUCTION
After a period of sustained growth, the Indian capital markets suffered a slowdown due to the
global financial crisis. However, since early 2009, the markets have recovered. Indices have
gained over 80%, and market cap has more than doubled, making India one of the top
performing markets.
In a new report, Indian Capital Markets: Trends and Prospects, Celent analyzes trends and
opportunities in various segments of the Indian capital market including the equity, debt, and
derivatives segment. The report focuses on the drivers of growth in each area and the roadblocks
hampering development. It also studies trends in the retail and institutional segments, with a
focus on the issues responsible for the current lull in the retail investment space.

Capital market research is an essential activity for companies because it enables them to
provide products and services that are useful for the targeted consumers. Such a focused and
logical approach enhances the profit making possibilities of companies.
The companies can earn more dividends and at the same time minimize risks as a result of
research on capital markets. One big advantage of capital market research is establishment of
proper communication between the companies and the customers. The customer reactions to
various services provided by the companies can be measured as a result of capital market
research.

The companies can thus do away with wrong policies and look to take the right steps. The
companies can also locate the right opportunities through market research. If the company

undertakes capital market research before launching a new product or service then it stands a
better chance of getting a good return. Risk minimization is another reason for
undertaking capital market research.
Through this research, the exact needs of the market and the general public can be gauged and
the products and services can be made very demand oriented.

The companies can also analyze whether they are making progress in the right direction. Capital
market research should be done as early as possible in order to avoid problems in the future.
Before investing in the stock market, capital market research needs to be undertaken. Research
involves finding the companies and stock prices that would best suit the financial situation of the
investor. The company profile needs to be studied and the size of the company is another
important parameter of stock market investment research.
Gathering information on the history of the company is another facet. Its history of profits and
popularity and its performance in the past must be analyzed before investing in the shares of that
company. Research on the products and services of various companies is also very important.
Investments should be made for the long term. This minimizes risk and increases profitability.
Lastly, investment should be made wisely and regularly and this results from a good capital
market research.

2. Objectives of the study:

1. To examine the changing trend of the capital structure.
2. To examine the changing patterns in capital market.
3. To provide suggestions.

3. HYPOTHESIS
H1: The changing trends are useful to the customers.
H2: The customer is satisfied by the changing trends.

4. Need of the Study:

In this study, we try to find out the ways in which different companies at different times and in
different institutional environments have financed their operations and to identify possible
implications of these financing patterns. The central issue we address is to examine the trend of
changes in the capital structure of Indian companies and impact of liberalization on the capital
structure decisions of Indian companies. We also try to find out the factors that determine the
financing pattern of capital structure of Indian companies, particularly in the private sector.

5. RESEARCH METHODOLOGY
The sample size for this study is 30 customers from banks which located at
Mumbai, Andheri. Convenience sampling technique was used for this study to
distribute questionnaires to the customers of the banks at Butterworth, Penang.

6. LIMITATION OF THE STUDY

This study was applied in a smaller scope which is only 3 banks selected in Butterworth, Penang
only. In the future, this study must be carried out at all of the banks in Malaysia. The result
shows on this study is only the proposed variables which referred from the related journal.
Probably some other factors might influence in determining customer service quality level in
commercial banks.

CHAPTER 2: REVIEW OF LITERATURE

Raghunathan and Varma (1992a) point out that any comparison of the Indian stock market with
those elsewhere must be carried out on a common currency base. They find that in dollar terms,
the SENSEX return over the 1960-92 period is only about 0.5%, while during the same period
the returns in the U.S. (based on the S & P Index) and the Japanese (based on the NIKEI index)
are 6.1% and 11.4% per year respectively. Over the twelve year period 1980-92, the dollar
returns for SENSEX, S & P and NIKEI indices turn out to be 6.5%, 10.65% and 13.6%
respectively. For a shorter span of seven years, namely 1985-92, the returns for the three indices
turn out to be quite comparable at 15%, 13% and 14% respectively.

Venkateshwar (1991) explores the relationships of the Indian stock markets as reflected by the
Bombay Stock Exchange Index, vis-a-vis other prominent international stock markets. 23
international Stock indices are used over the period 1983-87. He concludes that there is
practically no meaningful relationship between the BSE index and other international stock
market indices, though the British and South Korean indices are inversely related to BSE.

Pandya (1992) observes that as a regulatory and development body, SEBI's efforts in the
direction of investor protection are varied and unlimited. The measures brought in by SEBI

broadly cover measures for allocative efficiency in the primary market with fair degree of
transparency, reforms in the secondary market for visible and mutual funds, regulation of various
market intermediaries and above all for the protection of the investing public.

Barua (1993)). Dhillon (1993), in his doctoral dissertation studies the regulatory policies of
Bombay Stock Exchange (BSE) over a four year period (July 1986 - June 1990). His findings
show that regulatory authorities decide changes in their margin policy on the basis of market
activity. He finds that the margins are prompted by changes in settlement returns, price volatility,
trading volume and open positions. Granger causality results show that there is limited causality
in the reverse direction: margin changes do not affect returns, and have only a limited impact on
price volatility, trading volume and open positions. Event study methodology applied to daily
margins show similar results, except that daily margin on sellers do not appear to be affected by
market variables.

2. REFERENCE:
NAME: Brealey, R., and Myers S.
YEAR: 2000
NAME OF THE BOOK: Principles of Corporate Finance
PUBLICATION: McGraw Hill 6th edition
NAME: Bradley, M., G. Jarrell, and Kim E.
YEAR: 1984
NAME OF THE BOOK: On the Existence of an Optimal Capital Structure

PUBLICATION- Journal of Finance

YEAR: 1985
NAME OF THE BOOK: C.R.Research Methodology: Methods and Techniques
PUBLICATION: Wiley Eastern Publications

CHAPTER 3
SECONDARY DATA:
Grossman, S., and Hart O. (1982): Corporate Financial Structure and Managerial Incentives,
in: McCall, J. (ed.), The Economics of Information and Uncertainty, University of Chicago Press.
Gujrati D. N. & Sangeetha (2007): Basic Econometrics: India: Tata Mc GrawHill.
Harris, M., and Raviv A. (1991): The Theory of the Capital Structure, Journal of Finance 46,
pp 297355.
Jensen, M. (1986): Agency Cost of Free Cash Flows, Corporate Finance and Takeovers,
American Economic Review 76, pp 323339.

2 BIBLIOGRAPHY:
Books:
Endo, Tadashi. 1998.
The Indian Securities Market A Guide for Foreign and Domestic Investors. Vision Books. India

Euro money. 1996. World Equity Guide. UK: Euro money Publications.

Articles:
DAVID, S (2010). articlestorehouse.com/Art/.../Why-Customer-Service-IsImportant.html
The journal of Banking Studies, Bankers College New Delhi, April 2004, p.22.

Websites:
Kevin, C. (2005). www.qualitydigest.com/sept00/html/satisfaction.html
Richardson, M. (2010). www.customers1st.blogspot.com, www.communicationis-importantincustomer.html

QUESTIONNAIRE
A STUDY OF CHANGING TRENDS IN CAPITAL MARKET
Please tick the appropriate in below mentioned questions.
Name: _______________________________________________________________________
Gender: a) Male ______________

b) Female ______________

1) Age distribution of you?

a) < = 30 years ______ b) 31-40 years ______ c) 41-50 years ______ d) > 50 years
2) Educational Qualification?
a) Undergraduate ________ b) Graduate ________ c) Post-graduate ________
3) Occupation of the investors?

a) Government Service ______ b) Private Service ______ c) Business_____ d) Others _____

4) Monthly Family Income of the investors?

a) 10,001-15,000 _____ b) 15,001-20,000 _____ c) 20,000-30,000 _____d) > 30,000_____
5) Invested in different kind of Investments?
a) Insurance ______ b) Shares/Debentures______ c) Mutual Fund_____ d) Real Estate______
6) Preference of factors while investing?
a) Liquidity _____

b) Low Risk _____

c) High Returns _____ d) Trust_____

7) Which channel will you prefer while investing in Capital Market?

a) Financial Advisor _____ b) Bank_____ c) Asset Management Company______

8) Mode of investment preferred by you?

a) One Time Investment ___________

b) Systematic Investment Plan (SIP) ___________

9) No. of years of experience in Capital Market?

a) < 3 years ____ b) 3 years 5 years____ c) 5 years 10 years ____ d) > 10 years ____
10) Are you aware about Capital Market and its changing trends?
a) Yes ____

b) No ____

11) Are you satisfied with the services provided by the capital market in all its instruments?
a) Highly Satisfied ____ b) Satisfied ____ c) Neutral ____ d) Not Satisfied ____
12) Does the pattern of services provided by the capital market inspire you to continue
with the capital market?
a) Yes _______
13)

b) No _______

Preferred Portfolios by you?

a) Equity ______________
14)

c) Cannot Say ______

b) Debt _______________

c) Balanced ______________

Option preferred by you for getting returns?

a) Dividend Payout ______

b) Dividend Reinvestment ______

c) Growth _______