investor behaviour sharekhan

7/31/2019 Investor Behaviour Sharekhan

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A

WINTER PROJECT REPORT

ON

INVESTORS BEHAVIOUR FOR INVESTING IN EQUITY MARKET IN

VARIOUS SECTORS IN SURAT CITY

(Conducted on behalf ofSharekhanLimited, Surat)

(From 4th January, 2010 to 4th March, 2010)

A Project Report

Submitted in partial Fulfillment of the requirements

For the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION

TO

VEER NARMAD SOUTH GUJARAT UNIVERSITY, SURAT

Submitted By:

ASHISH L. SORATHIYA

T.Y.B.B.A (Sem-VI) FINANCE

Roll No. 79

Under the guidance of

MISS KHUSHBU VORA

Submitted To:

THE CO-ORDINATOR

VIVEKANAND COLLEGE FOR B.B.A., NEAR JAHANGIRPURA,

VEER NARMAD SOUTH GUJARAT UNIVERSITY, SURAT

ACADEMIC YEAR

March 2010


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I ASHISH L. SORATHIYA, here by declare that the project report entitled

Investors Behaviour for Investing in Equity Market in

Various Sectors Conducted on behalf of SHAREKHAN LIMITED, Surat under

the guidance of Ms. Khushbu Vora submitted in partial fulfillment of therequirements for the award of the degree of Bachelor of Business

Administration to Veer Narmad South Gujarat University, Surat is my original

Work-Research Study-carried out during 4th January, 2010 to 4th

March, 2010 and not submitted for the award of any other

degree/diploma/fellowship or other similar titles or Prizes to any other

Institutions/Organization or University by any other person.

Place: ASHISH L. SORATHIYA

T.Y.B.B.A (Sem-VI)

Roll No. 79

Date:


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I express my deep sense of gratitude towards my guide,

Ms. Khushbu Vora without whose kind help this project study would have been

extremely difficult. She has helped me with her valuable suggestions right from

the beginning till the final draft of the report. The sheer mention of my project

study shall ever commemorate her kind guidance.

I am also grateful to Mrs. Varsha Patel, faculty of the

Vivekanand College for B.B.A. for his kind effort to make all the required

facilities available and gave his valuable suggestions in preparing this project

report. The library facility of the college has been of immense use to me for

reference of books and old project reports.

I am also thankful to Mr. Zubin Bhatporia (Associate Vice President) of

Sharekhan Ltd., Surat for giving me an opportunity for getting in valuable

experience in such reputed organization.

I am also thankful to Mr. Darwin Variava who is presently working with

Sharekhan Limited for providing me actual training and the required knowledge

& guidance in completing this training successfully.

Finally, I would like to record my special thanks to my parents, friends,

and colleagues help me directly or indirectly in preparation of project work.

ASHISH L. SORATHIYA

T.Y.B.B.A (Sem-VI)

Roll No. 79


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This is to certify that the Project Report entitled A STUDY ON

INVESTORS BEHAVIOUR FOR INVESTING IN EQUITY MARKET IN

VARIOUS SECTORS IN SURAT CITY (Conducted on behalf of Sharekhan

Limited, Surat) submitted in partial Fulfillment of the requirements for the award

of the degree of BACHELOR OF BUSINESS ADMINISTRATION to VEER

NARMAD SOUTH GUJARAT UNIVERSITY, SURAT is a record of bonafideresearch work carried out by ASHISH L. SORATHIYA under my supervision and

Guidance.

..Ms. Khushbu Vora

Project Guide


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Myself Ashish L. Sorathiya, student of Vivekanand College for

B.B.A. who is presently undertaking education in the spare of Bachelor of

Business Administration which covers total business activities.

As students of management, I must be encouraged by the growth

and rapid developments taken place in Various Sectors, in India. Still

recently, management is growing baby. Keeping in mind the ever development

field of management and great demand for Finance in our country, our university

(VNSGU) has arranged specialization program in many field of management.

Thus, it is our moral and obligatory duty to take this part of our studies with great

enthusiasm and seriousness and give it the due importance.

My report gives information about the Behavior of Investors forInvesting in Various sectors regarding Equity market. The report contains

graphical representation & interpretation with each graphs and charts. For the

preparation of this report, I have used simple random sampling method for survey

purpose. This training proved to be an experience, which is required to become a

true student of management and administration.


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Days were gone when people only invest their money in Post offices or in

Banks and another safely fixed return investment. Today people have several

choices for the investment alternatives. Now a day, one of the most emerging

choices is to invest in equities shares. To get good return on investment, people

are ready to take risks. Law always says that investors get HIGHER RETURN if

they take HIGH RISK. For high risk there is one avenue to invest and that is

Equity Market.

This Project Focused On INVESTORS BEHAVIOUR FOR INVESTING

IN EQUITY MARKET IN VARIOUS SECTORS IN SURAT CITY. Objectives

behind this project are to know investors behavior for investing in various sectors

regarding equity market, to know their preference of investment in equity market,

and to know whether potential growth of equity market is there or not.

I have used Descriptive Research Design because answers the

questions who, what, where, when and how. This study is complex and

determines high degree scientific skill to study the problem. Questionnaires are

used for survey purpose and before going to actual survey pilot testing were also

done.

Sample size is of 175 respondents who are the actual and potential

investors from whole of the equity market of Surat city and also from SharekhanSecurities Pvt. Ltd. Here, each sample has the chance to be selected on an equal

basis because I have used simple random sampling method for surveying

purpose.

From research I found that 68% of investors are investing in Equity

Market. While 36% of investors are not investing in Equity Marketas per my

sample size 175.


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Means most of the customers are aware about Equity Market. There are

certain customers who are also aware about equity market but, they not want to

invest in equity market, Reasons for not investing in equity market is high risk

and there are no any fixed returns criteria and Investors age also affect in risk

factor. Means old persons risk bearing capacity is law so, investors also

select investment avenue as per his/her risk bearing capacity

Equity share holder is real owner of the company in spite of their priority

in getting dividend is comes last.

Major Investors are investing in equity market only due to

earn high return and hedge the risk by investing their 5%-10%of income inEquity Market. 28% of investors invest in Equity market for the period of

1 to 3 Months and the same proportion of investors are invest for

long period more than year.

On the basis of research I found that, major investors have selected

Oil & gas sector as a 1st Rank, IT sector as a 2nd Rank, Banking sector as a

3ndRank, Automobile sector as a 4thRankand Infrastructure sector as a 5nd

Rank.

Most of investors have considered Market trend, Price Earning Ratio,

Dividend and Profitability as a most important factor while selecting the Sector

and company under the sector.

I have used SPSS software (Statistical Package for the SocialSciences) for analysis purpose and in that I have used graphical

representation & interpretation with each graphs and charts and Microsoft

Office is used for data typing formatting and analyzing the data.


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COMPANY PROFILE

Company Name: SHAREKHAN LIMITED

Parental Company: SSKI Group

(Shripal Sevantilal Kantilal Ishwarlal Pvt. Ltd)

Establishment year: 1922

CEO of the

company:Mr. Tarun Shah

Head Office: A-206, Phoenix House,

2nd Floor, Senapati Bapat Marg,

Lower Parel,

Mumbai- 400 013.

Surat Main Branch:

(Where I have taken

training)

M- 1 to 6, Jolly Plaza,

Mezzanine Floor,

Athwa Gate,

Surat - 395001

Telephone No: (022) 67482000

0261- 6560310-314

Online division as

Sharekhan 8th February 2000

Web Site: www.sharekhan.com

Email: [email protected]

Offices(Network): More than 640 outlets in 280 cities


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INTRODUCTION OF SHAREKHAN

Sharekhan is one of the leading share broking and retail brokerage firms in

the country. It is the retail broking arm of the Mumbai-basedSSKI Group (Shripal

Sevantilal Kantilal Ishwarlal Pvt. Ltd), which has more than 88 years of

experience in the stock broking business. SSKI is a veteran equities solutions

company with more than 8 decades of trust and credibility in the Indian stock

markets. It helps the customers/people to make informed decisions and simplifies

investing in stocks.

Sharekhan brings to you a user- friendly online trading facility, coupled

with a wealth of content that will help you stalk the right shares. SSKI named its

online division as a Sharekhan and it is into retail broking. The business of the

company overhauled10 years ago on February 8, 2000. It acts as a discount

brokerage house to a full service investment solution provider. It has specialized

research product for the smallinvestors and day traders.

Sharekhans online trading and investment site ww.sharekhan.com was

launched in 2000.

Though the www.sharekhan.com, have been providing investors a

powerful online trading platform, the latest news, research and other knowledge-

based tools and Sharekhan's equity related services include trade execution on

BSE, NSE, Derivatives, commodities, depository services, online trading and

investment advice.

Sharekhans ground network includes over640 Share shops across 280

cities in India. With branches and outlets across the country, Sharekhans

ground network is one of the biggest in India!

They have talent pool of experienced professionals specially designated

to guide you when you need assistance, which is hy investigating with us is

bound to be a hassle-free experience for you!


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The Sharekhan provides its Customers First Step program, built

specifically for all investors, so testament is

YOUR GUIDE TO THE FINANCIAL JUNGLEmeans

Our commitment to being your guide throughout your investing lifecycle

The institutional broking arm of SSKI was also awarded Indias best

broking house for 2004 by Asia Money brokers poll recently & It has also won

the prestigious Awaaz Consumer Vote Awards 2005 for the Most Preferred

Stock Broking Brand in India, in the Investment Advisors category.

They have 640 share shops across 280 cities in India to get a host of tradingrelated services our friendly customer service staff will also help you with any

account related queries you may have.

Sharekhan won the award by the vote of consumers around the country,

as part of Indias largest consumer study cover 7000 respondents 21 products

and services across 21 major cities. The study, initiated by Awaaz Indias first

dedicated Consumer Channel and member of the worldwide CNBC Network, &

AC NielsenORG Marg, was aimed at understanding the brand preferences of

the consumers & to decipher what are the most important loyalty criteria for the

consumer in each vertical.The reasons behind the preferences for brands were unveiled by

examining the following: Tangible features of product / service.

Softer, intangible features like imagery, equity driving preference.

Tactical measures such as promotional / pricing schemes.


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Sharekhan completes 10 years in Retail Broking Business:

Sharekhan Ltd, Indias leading online retail broking house with a strong

online trading platform, has completed a decade in the business offering services

such as portfolio management, trade execution in equities, futures & options,

commodities and distribution of mutual funds, insurance and structured products.

In a short span of 10 years, the company has scripted a remarkable

growth story. Starting from beginnings in 8th February2000 as an online trading

portal, Sharekhan today has a pan-India presence as well as global footprint in

UAE and Oman with over 1,200 outlets serving 9,50,0000 customers across

400 cities.

Mr. Tarun Shah, CEO, Sharekhan,

Says - We are proud to be

completing a decade of setting new

standards in the industry. This

journey has been eventful. And thejourney couldnt have been such a

rewarding one without the support of

our patrons who infused immense

faith in our services in the last 10

years. We profusely thank our

patrons for the same.

Sharekhan in its decade-old journey has set category leadership through

pioneering initiatives likeTrade Tiger; a net based executable application that

emulates a broker terminal besides providing information and tools relevant to

traders. Through its First Step program Sharekhan has been guiding first-time

investors and helping them makes informed decisions.


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ABOUT SHAREKHAN

SSKI named its online division as SHAREKHAN and it is into retail broking.

The business of the companyoverhauled 10 years ago on February 8,

2000.

It acts as a discount brokerage house to a full service investment solutions

provider.

It has specialized research product for the small investors and day traders.

Largest chain of 640 shares shops in 280 cities across India.

The site was also launched on February 8, 2000 and named it as

www.sharekhan.com.

The Speed Trade account of Sharekhan is the next generation technology

product launched on April 17, 2002.

It offers its customers with the trade execution facilities on the NSE and BSE,

for cash as well as derivatives, depository services.

Ensures convenience in Trading Experience: Sharekhans trading services are

designed to offer an easy, hassle free trading experience, whether trading is

done daily or occasionally. Sharekhan providing the customers with a multi-

channel access to the stock markets.

It gives advice based on extensive research to its customers and provides

them with relevant and updated information to help him make informed about

his investment decisions.

Sharekhan offers its customers the convenience of a broker-DP.

It helps the customers meet his pay in obligations on time thereby reducing the

possibility of auctions. And execute the instruction immediately on receiving it

and thereafter the customer can view his updated account statement on

Internet.

Sharekhan depository services offer Demat services to individual and

corporate investors. A customer can avail of Demat, repurchase and

transmission facilities at any of the Sharekhan branches and business partners

outlets.


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BRAND NAME:

The company as a whole in its offline business has named itself as SSKI

Securities Private Limited

Shripal Sevantilal Kantilal Ishwarlal SecuritiesPrivate Limited. The company has preferred to name themselves under a

blanket family name.

But, in its online division started since 1997, the company preferred to

name itself as SHAREKHAN. The Brand name SHAREKHAN itself suggests

the business in which the company is dealing so that the customer could easily

identify the product or service category.

SHAREKHANS MISSION & VISION:

MISSION

To educate and empower the retail investor

to help him/her take better investment decisions.

VISION

To be the best retail broking brand in the Indian equities market.

ROLE OF SHAREKHAN:

Interface between the stock exchange and the investor.

Assistance to investors in precise allocation of funds.

Building awareness amongst general public about stock market.


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Core Services of Sharekhan:

As a Sharekhan customer you can decide the channel through which you

want to receive different Services.


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OTHER SERVICES PROVIDED BY SHAREKHAN

1. Online Services

2. Offline Services3. Depository Services: Demat & Remat Transactions

4. Derivatives Trading (Futures and Options)

5. Commodities Trading

6. IPOs & Mutual Funds Distribution

7. Fundamental Research

8. Technical Research

9. Portfolio Management

10. Free access to investment advice from Sharekhan's Research team

11. Sharekhan Value Line (a monthly publication with reviews of

recommendations, stocks to watch out for etc)

12. Daily research reports and market review (High Noon & Eagle Eye)

13. Pre-market Report (Morning Cuppa)

14. Daily trading calls based on Technical Analysis

15. Cool trading products (Daring Derivatives and Market Strategy)

16. Personalised Advice

17. Live Market Information

18. Internet-based Online Trading: SpeedTrade

1.Online Services:

Online BSE and NSE executions (through BOLT & NEAT terminalsMutual Funds

Commodity Futures

PMS (Portfolio Management Services)

Technical PMS

Demat Services

Share shops


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1. Online Account: -

In the Online account, the company simply provides the terminal to the

customers or clients and the clients can do trading himself/herself when he/she

wants. The charges of online account is Rs. 750 /-, which is varies from company

to company. Online accounts are most popular than the Offline accounts.

In the Online A/C, the company provides 3 types of facilities to their clients

as per the requirements.

A. Classic Accounts

B. Trade Tiger Accounts

C. Dial nTrade

A. Classic Accounts:

Investing Online is so much easier!

In Classic accounts, it is very simple to do trading. Here customer has first

to open a Demat account with Sharekhan and after opening an account he can

get the login ID and password. With the help of login ID and password, the client

can login to the Sharekhan.com and in the classic a/c whatever companys

information the clients wants, he has to type the companys name or code and he

will get all the necessary information about that company and he can buy or sell

the that companys stock or shares. But, here in the classical account the client

can access only one scrip at a time.


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Features of Classic Account:

Classic account enables you to buy and sell shares through our website. You

get features like

Online trading account for investing in Equities and Derivatives via

sharekhan.com

Integration of: Online trading + Bank + Demat account

Instant cash transfer facility against purchase & sale of shares

Make IPO bookings

You get Instant order and trade confirmations by e-mail

Streaming Quotes Personalised Market Scan with your own customized stock ticker!

Single screen interface for cash and derivatives

Your very own Portfolio Tracker!

B.Trade Tiger Account: -

Earlier it was known as Speed Trade and now it is known as Tiger Trade.

This account is same as fast trade account. But, difference between these

two accounts is that in the Tiger Trade Account the client can access more than25 scripts at a time and buy and sell the share from wherever they wants. This

account also provides the charts and graphs, so that the clients can easily

understand about the stock of the company. This is only for big clients and dealer

kind of customers. This account is mainly for active traders who trade frequently

during the trading session.


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Features of Trade Tiger Account: -

A single platform for multiple exchange BSE & NSE (Cash & F&O),

MCX, NCDEX, Mutual Funds, IPOs

Multiple Market Watch available on Single Screen

Multiple Charts with Tick by Tick Intraday and End of Day Charting

powered with various Studies

Graph Studies include Average, Band- Bollinger, Know Sure Thing, MACD,

RSI, etc

Apply studies such as Vertical, Horizontal, Trend, Retracement & Free lines

User can save his own defined screen as well as graph template, that is,

saving the layout for future use

User-defined alert settings on an input Stock Price trigger

Tools available to gauge market such as Tick Query, Ticker, Market

Summary, Action Watch, Option Premium Calculator, Span Calculator

Shortcut key for FAST access to order placements & reports

Online fund transfer activated with 12 Banks


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C.Dial-n-trade:

Features of Dial-n-trade:

TWO dedicated numbers for placing your orders with your cell phone orlandline. Toll free number: 1-800-22-7050. For people with difficulty in

accessing the toll-free number, we also have a Reliance number (Your

Local STD Code) 30307600 which is charged at as a local call.

Simple and Secure Interactive Voice Response based system for

authentication

No waiting time. Enter your TPIN to be transferred to our telebrokers

You also get the trusted, professional advice of our telebrokers After hours order placement facility between 9.00 am and 9.30 am (timings

to be extended soon)

2. Offline Account: -

This is simple way to do trading. In the offline account, the client

can place the order by telephone or through personal visit in the office.

The client who is very busy in their jobs or business, they can directly

place the order by the telephone or the client who are not much busy; they

can come to the office of Sharekhan.

Sharekhan also provide the Dial-n-trade service to their customers.

So that customers can directly place the order by the telephone.


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Demat Account Opening & Brokerage Charges: -

Fee structure for General Individual:Charges Classic Account Trade Tiger AccountAccount Opening Charges Rs.750/- Rs. 1000/-

Brokerage Intra-day : 0.10 %

Delivery : 0.50 %Intra-day : 0.10 %

Delivery : 0.50 %Annual Maintenance Charges Rs. NIL first year

Rs. 300/= p.a. from second year onwards

For Intra-day Trades:-

This is subject to a minimum brokerage of 5 paisa per share. This means

that if the share price you trade in is Rs 50/- or less, a minimum brokerage

of 5 paisa per share will be charged.

For Delivery Based Trades :-

This is subject to a minimum brokerage of 10 paisa per share. Minimum

brokerage of 10 paisa per share will be applicable when the share price

is Rs 20/- or less.


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Sharekhan launchs ShareMobile, an exclusive

live streaming quotes and trading facility for its

online trading customers

Next time when you are on move, you need

not worry about your favorite stocks price

movement. You can carry stock market

terminal with you anywhere anytime.

Have you ever missed an investment or an

opportunity to book profit / loss, just because

you were on move?

Sharekhan brings your freedom of being

Mobile. Yes, its so easy with ShareMobile to

track your favorite stocks price movement tick-by-tick.

How ShareMobile does empower you?

Live tick by tick stock price.

Latest News Headlines

Track your My Trade Portfolio investments

Live Research Fundamental & Trading Calls


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Sharekhan Depository Services:

Sharekhan Depository Services offers dematerialization services to

individual and corporate investors.

Sharekhan has a team of professionals and the latest technological

expertise dedicated exclusively to our Demat department, apart from a national

network of franchisee, making the services quick, convenient and efficient.

Trading in Commodity Futures:

It provides with facility to trade in commodities (Bullion: Gold, silver and

agricultural commodities) through a wholly owned subsidiary of its Parent

SSKI.

Sharekhan is a member of 2 Commodity Exchanges and offers trading

facility at both these exchanges:

1. Multi Commodity Exchange Of India (MCX)

2. National Commodity And Derivative Exchange, Mumbai (NCDEX)

Software (Technology) Used In Sharekhan: -

Sharekhan is using different technology for the running of their daily

transactions.

Mainly for the trading, the company using three software.

1. ODIN (VSAT Based)

2. Trade Tiger (WEB Based)

3. Classic/Fast Trade (WEB Based)


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And also NEAT System Used for making transaction in NSE listedcompany & same way BOLT System Used for making transaction BSE listed

company.

And for the client information or customer service, the company using two

software.

1. CIS Client Information System.

2. BOC Back Office.

Some Information about Sharekhan:

Turnover Rs. 15 corers daily

Employees Strength 35

Offices More than 640 outlets in 280 cities

Clients : Demat A/c

Trading A/c

5000

3000

Head office Mumbai

Working Capital More than 400 corers

Special Features

Sharekhan Classic Account

Sharekhan Trade Tiger Account

Dial n - Trade


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Sharekhan provide right investment decision to

Investors according to their needs


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Seven Reasons

Why Customers first choice isSHARAKHAN?1. EXPERIENCE:

SSKI has more than eight decades of trust and Credibility in the Indian

stock market. In the Asia Money brokers poll held recently, Sharekhan won the

India best broking house for 2004 award. Ever since it launched Sharekhan

as its retail broking division in February 2000, it has been providing institutional-

level research & broking services to investors.

2. TECHNOLOGY:

With Sharekhan online trading account you can buy and sell shares in an

instant from any PC with an internet connection. You will get access to our

powerful online trading tools that will help you take complete control over your

investment in shares.

3. KNOWLEDGE:

In a business where the right information at the right time can translate

into direct profits, you get access to a wide range of information on Sharekhans

website www.sharekhan.com. You will also get a useful set of Knowledge-based

tools that will empower you to take informed decisions.


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4.ACCESSIBILITY:

In addition to Sharekhan online and phone trading services also very

useful. Sharekhan also have a ground network of 640 share shops across 280

Cities in India where you can get personalize Services.

5. CONVENIENCE:

You can call Sharekhans Dial-n-Trade number to get investment advice

and execute your transactions. Sharekhan have a dedicated Call Center to

provide this service via a toll-freenumber from anywhere in India.

6. CUSTOMER SERVICE:

Sharekhans customer service team will assist you for any help that you

need relating to transactions, billing, demat and other queries. Sharekhans

customer service can be contacted via a toll-free number-mail or live chat on

Sharekhan.com.

7. INVESTMENT ADVICE:

Sharekhan has dedicated research teams for fundamental and technical

research. Sharekhans analysts constantly track the pulse of the market andprovide timely investment advice to you in form of daily research e-mail, online

chat, printed reports and SMS on your phone.


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SWOT ANALYSIS of SharekhanSTRENGTHS:

Online Trading Facility

Largest Chain of Retail Share Shops in India

88 years of Experience in securities market

Dedicated and responsive workforce/staff

Value added service for HNI client

Research Center

Membership of NSE & BSE

Trading option like Future & Option and Commodities

Volume based differentiated product.

WEAKNESSES:

Less informative website Does not have slab rate brokerage which is provided by competitors

Problems due to network crash

Unawareness Among Investors

OPPORTUNITY:

Collaboration with international financial institution

To tap the Untapped market To capture the market lost to its Competitors.

To focus on developing a superior and powerful portal

To spread awareness of its Brand Name.

THREATS:

Follow government laws

Competitors develops


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Prolonged depression and high volatility in the market

New Entrants.

Awards & Achievements of SHAREKHAN:

2001 - Web Award winner of Chip

magazines Best Financial Website

Award.

2004 - Best Local Brokerage byAdvisory Poll of Poll 2004.

2005 - Awaaz Consumer Awards Best

Broking House by CNBC channel.

Sharekhan is amongst top 3 online

Brokers in India.


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OF BROKING FIRMS


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INDUSTRY PROFILE OF BROKING FIRMS

The Indian retail brokerage industry consists of companies that primarilyact as agents for the buying and selling of securities (e.g. stocks, shares, and

similar financial instruments) on a commission or transaction fee or Brokerage

basis.

An agent that charges a fee or commission for executing buys and sell

orders submitted by an investor. The firm that acts as an agent for a customer,

charge the customer the commission for its service. Roles similar to that of a

stockbroker include investment advisor, financial advisor and probably many

others. A stockbroker may or may not be also an investment advisor.

A stockbroker is a regulated professional broker who buys and sells

shares and other securities through market makers or Agency Only Firms on

behalf of investors.

Typically, a broker who receives an order from a customer will

communicate with a company employee located at a particular exchange, who

will execute the order at the exchange and report details of the transaction to the

broker. Customers typically keep their securities in an account with the broker.

Brokers charge customers commissions for conducting transactions and fees for

maintaining their accounts.

Some of the main characteristics of the brokerage industry include growth

in e-broking, decline in brokerage fees and growing derivative market and manymore.

There are several national as well as local players in stock trading services

which are providing various services to their customers like online trading,

portfolio management system, stock broking etc.

They are helping the investors to take decision about where to invest because

there is lots of Investment Avenue available with investors. Some of them are as

follows working at the national level.


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5Paisa.com- Online trading, live stock quotes and market research

Anagram Capital - Stock broking, portfolio management and investmentbanking services

Angel Broking -Stock-Broking and Wealth Management services

Advani Share Brokers- Share broking and market research services

Anand RathiSecurities- Portfolio management, corporate finance, equity &fixed income brokerage services

Brescon Group- Advisory and broking services

CIL Securities- Stock broking & merchant banking services

CRN India- Trends of stock market, trading tips, chat etc

Churiwala Securities- Stock trading, quotes and market analysis

DSP Merrill Lynch- Investment banking and brokerage services

Dalmia Securities- Stock broking & depository services

Equity Trade- Stock trading, company news & market research

Gandhi Securities- Stock broking and investment services

Gogia Capital Services- Stock broking and market analysis

Hasmukh Lalbhai- Stock trading services

Idafa Investments- Stock broking services

India Info line Securities - Stock broking, portfolio management andinvestment banking services

India Market Access - Offers stock broking, portfolio management andinvestment banking services

Investsmart India- Personal finance advisory & online brokerage services

Kisan Ratilal Choksey Shares- Stock broking and e-trading services

Kotak Securities - Brokerage services & retail distributor of financialsecurities

Manubhai Mangaldas Securities- Stock broking and market analysis

Moneypore- Investment and broking services
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Motilal OswalSecurities - Online trading, live BSE and NSE quotes

Navia Markets- Stock broking, IPO and mutual funds services

Parag Parikh- Stock broking and portfolio management

Parsoli Corporation- Investment management & stock trading services

Pratibhuti Viniyog- Stock broking services

Prudential- Investment management services

Quantum Securities- Offers broking and portfolio management services.

Religare Enterprises Limited - Stock broking services and diversified

financial services group with in multiple international locations

Sivan Securities- offers services related investment banking & stock broking

with a focus on South India.

Etc..etc..

Lots of brokerage companies are moving towards consolidation with the

smaller ones becoming either franchisee for the larger brokers or closing

operations. There is an increasing demand for online trading due to consumers

growing preference for Internet as compared to approaching the brokers.

New forms of trading including T+2 settlement system, dematerialization

etc. are strengthening the retail brokerage market and attracting foreign

companies to enter the Indian industry Various alternative forms of investment

including fixed deposits with banks and post offices etc act as substitutes to retail

broking products and services.
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Stock Market

Stock markets refer to a market place where investors can buy and sell

stocks. The price at which each buying and selling transaction takes is

determined by the market forces (i.e. demand and supply for a particular stock).

A stock market is a public market for the trading of company stock and

derivatives at an agreed price; these are securities listed on a stock exchange as

well as those only traded privately.

The size of the world stock market was estimated at about $36.6 trillion

USD at the beginning of October 2008.

The stock market is one of the most important sources for companies

to raise money. This allows businesses to be publicly traded, or raise additional

capital for expansion by selling shares of ownership of the company in a public

market.

In fact, the stock market is often considered the primary indicator of a

country's economic strength and development. Rising share prices, for instance,

tend to be associated with increased business investment and vice versa.

In this way, investing in stock market, the stock exchanges also play

importance role. Exchanges also act as the clearinghouse for each transaction,

meaning that they collect and deliver the shares, and guarantee payment to the

seller of a security. This eliminates the risk to an individual buyer or seller that thecounterparty could default on the transaction. So, here we also understand about

Stock Exchanges as follows.


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Stock exchange

A stock exchange is an entity which provides "trading" facilities for stock

brokers and traders, to trade stocks and other securities.

Stock Exchanges are an organised marketplace, either corporation or

mutual organisation, where members of the organisation gather to trade company

stocks or other securities.

Stock exchanges also provide facilities for the issue and redemption of

securities as well as other financial instruments and capital events including the

payment of income and dividends.

The securities traded on a stock exchange include: shares issued by

companies, unit trusts, derivatives, pooled investment products and bonds. To be

able to trade a security on a certain stock exchange, it has to be listed there.

Usually there is a central location at least for recordkeeping, but trade is less and

less linked to such a physical place, as modern markets are electronic networks,

which gives them advantages of speed and cost of transactions. Trade on anexchange is by members only. The initial 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 is driven by various factors which,

as in all free markets, affect the price of stocks.

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.
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Major stock exchanges in the world

Twenty Major Stock Exchanges in The World: Market Capitalization &

Year-to-date Total Turnover at the end of August 2009

Where, TwomajorStock Exchanges from India, which is

1. Bombay Stock Exchange

2. National Stock Exchange

List of Stock Exchanges In India


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1. Bombay Stock Exchange(BSE)

2. National Stock Exchange(NSE)

3. Regional Stock Exchanges (21)

There are 21 other regional stock exchanges, which are

AhmedabadBangaloreBhubaneshwarCalcutta

CochinCoimbatoreDelhiGuwahatiHyderabadJaipur

LudhianaMadhya PradeshMadrasMagadhMangalore

MeerutOTC Exchange Of IndiaPuneSaurashtra KutchUttar

PradeshVadodaraetc.

Bombay Stock Exchange(BSE)

The Bombay Stock Exchange Limited is the oldest stock exchange not

only in the country, but also in Asia with a rich heritage of over 133 years of

existence. In the early days, BSE was established as "The Native Share &

Stock Brokers Association."

It was established in the year 1875 and became the first stock exchange

in the country to be recognised by the government. In 1956, BSE obtained a

permanent recognition from the Government of India under the Securities

Contracts (Regulation) Act, 1956.

Today, BSE is the world's number 1 exchange in terms of the number of

listed companies and the world's 5th in handling of transactions through its

electronic trading system.

The companies listed on BSE command a total market capitalization of

USD Trillion 1.06 as of July, 2009.

BSE reaches to over 400 cities and town nation-wide and has around

4,937 listed companies, with over 7745 scripts being traded as on

31st July 09.
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The BSE Index, SENSEX, is India's first and most popular stock market

benchmark index. The BSE SENSEX (SENSitive indEX), also called the "BSE

30", is a widely used market index in India and Asia. Sensex is tracked

worldwide. It constitutes 30 stocks representing 12 major sectors. The SENSEX

is constructed on a 'free-float' methodology, and is sensitive to market

movements and market realities. Apart from the SENSEX, BSE offers 23 indices,

including 13 sectoral indices.

BSE provides an efficient and transparent market for trading in equity, debt

instruments and derivatives.

BSE is the first exchange in India and the second in the world to obtain an

ISO 9001:2000 certifications. 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 BSE On-line Trading System

(BOLT).BSE continues to innovate. In 2006, it became the first national level stock

exchange to launch its website in Gujarati and Hindi and now Marathi to reach

out to a larger number of investors.

The BSE On-line Trading (BOLT):

BSE On-line Trading (BOLT) facilitates on-line screen based trading in

securities. BOLT is currently operating in 25,000 Trader Workstations

located across over 359 cities in India.

BSE Vision

The vision of the Bombay Stock Exchange is -

"To Emerge as the premier Indian stock exchange by

establishing global benchmarks."


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BSE Profile

Address :- Phiroze Jeejeebhoy Towers, Dalal Street

Mumbai-400001, India

Telephone :-91-22-227212334

Website :-www.bseindia.com

Trading hours :-Monday-Friday, 9:00am to 3:30pm

Securities :-Stocks, derivatives, debt

Trading System :-Electronic

MD & CEO :-Mr.Madhu Kannan

History of BSE

The Bombay Stock Exchange is known as the oldest exchange in Asia. It

traces its history to the 1850s, when stockbrokers would gather under banyan

trees in front of Mumbai's Town Hall. The location of these meetings changed

many times, as the number of brokers constantly increased. The group eventuallymoved to Dalal Street in 1874 and in 1875 became an official organization known

as 'The Native Share & Stock Brokers Association'. In 1956, the BSE became the

first stock exchange to be recognized by the Indian Government under the

Securities Contracts Regulation Act.

The Bombay Stock Exchange developed the BSE Sensex in 1986, giving

the BSE a means to measure overall performance of the exchange. In 2000 the

BSE used this index to open its derivatives market, trading Sensex futures

contracts. The development of Sensex options along with equity derivatives

followed in 2001 and 2002, expanding the BSE's trading platform.

Historically an open-cry floor trading exchange, the Bombay Stock

Exchange switched to an electronic trading system in 1995. It took the exchange

only fifty days to make this transition.
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National Stock Exchange(NSE)

The National Stock Exchange of India Limited (NSE), is a Mumbai-

based stock exchange. It is the largest stock exchange in India in terms of daily

turnover and number of trades, for both equities and derivative trading.

NSE has a market capitalization of around Rs 47,01,923 crore

(7 August 2009) and is expected to become the biggest stock exchange in India

in terms of market capitalization by 2009 end. Though a number of other

exchanges exist, NSE and the Bombay Stock Exchange are the two most

significant stock exchanges in India, and between them are responsible for the

vast majority of share transactions.

NSE is mutually-owned by a set of leading financial institutions, banks,

insurance companies and other financial intermediaries in India but its ownership

and management operate as separate entities.

There are at least 2 foreign investors NYSE Euro next and Goldman

Sachs who have taken a stake in the NSE. As of 2006, the NSE VSAT terminals,

2799 in total, cover more than 1500 cities across India.

In October 2007, the equity market capitalization of the companies listed

on the NSE was US$ 1.46 trillion, making it the second largest stock exchange

in South Asia.

NSE is the third largest Stock Exchange in the world in terms of the

number of trades in equities. It is the second fastest growing stock exchange in

the world with a recorded growth of 16.6%.

Origins:

The National Stock Exchange of India was promoted by leading Financial

institutions at the behest of the Government of India, and was incorporated in

November 1992 as a tax-paying company.

In April 1993, it was recognized as a stock exchange under the Securities

Contracts (Regulation) Act, 1956.


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NSE commenced operations in the Wholesale Debt Market (WDM)

segment in June 1994.

The Capital Market (Equities) segment of the NSE commenced

operations in November 1994, while operations in the Derivatives segment

commenced in June 2000.

Markets:

Currently, NSE has the following major segments of the capital market:

Equity

Futures and Options Retail Debt Market

Wholesale Debt Market

Currency futures

NSE became the first stock exchange to get approval for Interest rate

futures as recommended by SEBI-RBI committee, on 31 August,2009, a futures

contract based on 7% 10 Year GOI bond (NOTIONAL) was launched with

quarterly maturities.

Hours:

NSE's normal trading sessions are conducted from 9:00 am India Time to

3:30 pm India Time on all days of the week except Saturdays, Sundays and

Official Holidays declared by the Exchange (or by the Government of India) in

advance.

The exchange in association with BSE (Bombay Stock Exchange Ltd.,)

thinking to revise its timings from 9.00 am India Time till 5.00 pm India Time.

However, on Dec 17, 2009, after strong protests from brokers, the

Exchange decided to postpone the change in trading hours till Jan 04, 2010.

NSE new market timing from Jan 04, 2010 is 9:00 am till 3:30 pm India

Time.


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NSE Group:

National Securities Clearing Corporation Ltd. (NSCCL)

National Securities Depository Ltd. (NSDL)

India Index Services & Products Ltd. (IISL)

NSE.ITltd.

DotEx International Limited

History of N.S.E

Capital market reforms in India and the launch of the Securities andExchange Board of India (SEBI) accelerated the incorporation of the second

Indian stock exchange called the National Stock Exchange (NSE) in 1992. After a

few years of operations, the NSE has become the largest stock exchange in

India.

Three segments of the NSE trading platform were established one after

another. The Wholesale Debt Market (WDM) commenced operations in June

1994 and the Capital Market (CM) segment was opened at the end of 1994.

Finally, the Futures and Options segment began operating in 2000. Today the

NSE takes the 14th position in the top 40 futures exchanges in the world.

In 1996, the National Stock Exchange of India launched S&P CNX Nifty

and CNX Junior Indices that make up 100 most liquid stocks in India. CNX Nifty

is a diversified index of 50 stocks from 25 different economy sectors. The Indices

are owned and managed by India Index Services and Products Ltd (IISL) that has

a consulting and licensing agreement with Standard & Poor's.

In 1998, the National Stock Exchange of India launched its web-site and

was the first exchange in India that started trading stock on the Internet in 2000.

The NSE has also proved its leadership in the Indian financial market by gaining

many awards such as 'Best IT Usage Award' by Computer Society in India (in

1996 and 1997) and CHIP Web Award by CHIP magazine (1999).


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Indices of N.S.E

NSE also set up as index services firm known as India Index Services &

Products Limited (IISL) and has launched several stock indices, including:

S&P CNX Nifty(Standard & Poor's CRISIL NSE Index)

CNX Nifty Junior

CNX 100 (= S&P CNX Nifty + CNX Nifty Junior)

S&P CNX 500 (= CNX 100 + 400 major players across 72 industries)

CNX Midcap (introduced on 18 July 2005 replacing CNX Midcap 200)

Mission of N.S.E.

NSE's mission is setting the agenda for change in the securities markets in

India. The NSE was set-up with the main objectives of:

Establishing a nation-wide trading facility for equities, debt instruments and

hybrids,

Ensuring equal access to investors all over the country through an

appropriate communication network,

Providing a fair, efficient and transparent securities market to investors

using electronic trading systems,

Enabling shorter settlement cycles and book entry settlements systems,

and

Meeting the current international standards of securities markets.

The standards set by NSE in terms of market practices and technology

have become industry benchmarks and are being emulated by other market

participants. NSE is more than a mere market facilitator. It's that force which is

guiding the industry towards new horizons and greater opportunities.


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Theoretical aspect about topic

What is Investment?

The money you earn is partly spent and the rest saved for meeting future

expenses. Instead of keeping the savings idle you may like to use savings in

order to get return on it in the future. This is called Investment.

Why should one invest?

One needs to invest to:

Earn return on your idle resources

Generate a specified sum of money for a specific goal in life

Make a provision for an uncertain future

One of the important reasons why one needs to invest wisely is to meet the

cost of Inflation. Inflation is the rate at which the cost of living increases. Thecost of living is simply what it costs to buy the goods and services you need to

live.

Investor:

An investor is any party that makes an investment.

An individual who commits money to investment products with the expectation

of financial return.

The term has taken on a specific meaning in finance to describe the particular

types of people and companies that regularly purchase equity or debt

securities for financial gain in exchange for funding an expanding company.
http://en.wikipedia.org/wiki/Investmenthttp://www.businessdictionary.com/definition/individual.htmlhttp://www.investorwords.com/3100/money.htmlhttp://www.investorwords.com/2599/investment.htmlhttp://www.investorwords.com/3874/product.htmlhttp://www.businessdictionary.com/definition/expectation.htmlhttp://www.investorwords.com/5572/financial.htmlhttp://www.investorwords.com/4244/return.htmlhttp://en.wikipedia.org/wiki/Financehttp://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Bond_%28finance%29http://en.wikipedia.org/wiki/Security_%28finance%29http://en.wikipedia.org/wiki/Fundinghttp://en.wikipedia.org/wiki/Fundinghttp://en.wikipedia.org/wiki/Security_%28finance%29http://en.wikipedia.org/wiki/Bond_%28finance%29http://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Financehttp://www.investorwords.com/4244/return.htmlhttp://www.investorwords.com/5572/financial.htmlhttp://www.businessdictionary.com/definition/expectation.htmlhttp://www.investorwords.com/3874/product.htmlhttp://www.investorwords.com/2599/investment.htmlhttp://www.investorwords.com/3100/money.htmlhttp://www.businessdictionary.com/definition/individual.htmlhttp://en.wikipedia.org/wiki/Investment


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Investor's Behaviour:

Generally, Investors Behaviour regarding the any investment is primaryconcern with to minimize risk while maximizing return, as opposed to a

speculator, who is willing to accept a higher level of risk in the hopes of collecting

higher-than-average profits.

While, some people are also believes in High Risk, High ReturnManyinvestors purchase a particular stock with the intention of making a big

profit over a short period of time. However, this action is not investing, but a pure

gambling.

The stock market is characterized by the trade-off between

risk and return. The higher the risk the investor is willing and able to take, the

higher the potential rewards from the investment. Therefore, if a particular

investment offers you high returns, it is an indication that it will come with a high

risk burden.

Some people are also believes in that there is no safe investment that

will provide you with high returns over a short period of time. Therefore, you

should direct your resources toward long-term investments that are more likely to

reward you for the patience with high returns.

Investors Behaviour regarding the financial investment is closely related

with the Behavioral Finance and Behavioral Economics are closely

related fields making up a separate branch of economic and financial analysis

using social, cognitive and emotional factors in understanding the economic

decisions of investors for investment, and their effects on market prices, returns

and the allocation of resources.
http://www.businessdictionary.com/definition/primary.htmlhttp://www.businessdictionary.com/definition/concern.htmlhttp://www.investorwords.com/4292/risk.htmlhttp://www.investorwords.com/4644/speculator.htmlhttp://www.investorwords.com/37/accept.htmlhttp://en.wikipedia.org/wiki/Cognitive_biashttp://en.wikipedia.org/wiki/Economichttp://en.wikipedia.org/wiki/Decision_makinghttp://en.wikipedia.org/wiki/Market_pricehttp://en.wikipedia.org/wiki/PE_ratiohttp://en.wikipedia.org/wiki/Allocation_of_resourceshttp://en.wikipedia.org/wiki/Allocation_of_resourceshttp://en.wikipedia.org/wiki/PE_ratiohttp://en.wikipedia.org/wiki/Market_pricehttp://en.wikipedia.org/wiki/Decision_makinghttp://en.wikipedia.org/wiki/Economichttp://en.wikipedia.org/wiki/Cognitive_biashttp://www.investorwords.com/37/accept.htmlhttp://www.investorwords.com/4644/speculator.htmlhttp://www.investorwords.com/4292/risk.htmlhttp://www.businessdictionary.com/definition/concern.htmlhttp://www.businessdictionary.com/definition/primary.html


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Information of Equity Market & various sectors

What is Equity Market?

A market where investors buy and sell securities

providing ownership of a company's shares.

The market in which shares are issued and traded, either through

exchanges or over-the-counter markets. Also known as the stock market,

it is one of the most vital areas of a market economy because it gives companies

access to capital and investors a slice of ownership in a company with the

potential to realize gains based on its future performance.

Equity market, or stock market, is a system through which company

shares are traded. The equity market offers investors an opportunity to participate

in a company's success through an increase in its stock price. With enhanced

opportunity, however, the equity market usually carries greater risk than debt

markets.

Indian Equity Market

The Indian Equity Market is more popularly known as the Indian Stock

Market. The Indian equity market has become the third biggest

after China and Hong Kong in the Asian region.

According to the latest report by ADB, it has a market capitalization of

nearly $600 billion. As of March 2009, the market capitalization was around

$598.3 billion (Rs 30.13 lakh crore) which is one-tenth of the combined

valuation of the Asia region. The market was slow since early 2007 and

continued till the first quarter of 2009.

The Indian equity market depends on three factors -

Funding into equity from all over the world Corporate houses performance

Monsoons
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The equity market is also affected through trade integration policy. The

country has advanced both in foreign institutional investment (FII) and trade

integration since 1995. This is a very attractive field for making profit for medium

and long term investors, short-term swing and position traders and very intra day

traders.

The Indian market has 22 stock exchanges. The larger companies are

enlisted with BSE and NSE. The smaller and medium companies are listed

with OTCEI (Over The counter Exchange of India). The functions of the Equity

Market in India are supervised by SEBI (Securities Exchange Board of India).

The Indian Equity Market was not well organized or developed before

independence. After independence, new issues were supervised. The timing,

floatation costs, pricing, interest rates were strictly controlled by the Controller of

Capital Issue (CII).

In the 1950s, there was uncontrollable speculation and the market was

known as Satta Bazaar'. Speculators aimed at companies like-Tata Steel,

Kohinoor Mills, Century Textiles, Bombay Dyeing and National Rayon. The

Securities Contracts (Regulation) Act, 1956 was enacted by the Government ofIndia. Financial institutions and state financial corporation were developed

through an established network.

Two new stock exchanges, NSE (National Stock Exchange of India)

established in 1994 and OTCEI (Over the Counter Exchange of India)

established in 1992 gave BSE a nationwide competition. In 1995-96, an

amendment was made to the Securities Contracts (Regulation) Act, 1956 for

introducing options trading. In April 1995, the National Securities Clearing

Corporation (NSCC) and in November 1996, the National Securities Depository

Limited (NSDL) were set up for demutualised trading, clearing and settlement.


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!!!!.....Equity Markets climb a wall of worry..!!!!

The Sensex has returned about 18.62 % compounded

Annual return over the past 27 years in spite of following

Uncertainty..!!!

1 War (With Pakistan Kargil 1999).

Increasing Terrorism and threats to Internal Security (Punjab, J&K, Assam

, Naxalite problem in Bihar & other parts of India).

2 Major financial scandals and a number of minor ones (Harshad Mehta,

Ketan Pareikh, C.R. Bhansali,Sanjay Agarwal etc).

2 assassinations of Prime ministers (Indira Gandhi & Rajiv Gandhi).

Number of communal riots (Ayodhya, Godhra - They keep happening with

immaculate consistency).

More then 11 different Governments perusing different manifestos and

putting all of them under a common banner titled Common Minimum

Program..

Poor Monsoons on more then 3 to 4 occasions. Each year the marketspeculates as to how the Monsoons have hit the coast of Kerala but over

alonger period of time they do not matter. More so with increasing irrigation

systems and development our dependence on monsons will come down

further.

Mortgage of Gold to tide over the foreign exchange crisis (In 1991 the

Indian Govt. mortgaged Gold to the Bank of England).

Coalition governments have governed major portion of the last 25 years.

Numerous numbers of natural calamities and disasters (Tsunami 2004,

Gujarat Earthquake 2001, Surat Plague 1995).

In this way, stock prices are rising regardless of market uncertainties,

so, the stock market is said to be climbing a wall of worry. These worries may

include political or economic risks etc.


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INTRODUCTION OF VARIOUS SECTORS

A.Meaning of Sector:

There are many companies or scrip that manufacturer the same

products and provide services are specified under the particular name that

called Industry or Sector.

There are many other different kinds of industries, and often

organized into different classes or variety of industrial classifications its

called Sector.

In this report, I have study on these Five Sectorswhich are:

1.

Oil & Gas Sector

2. Banking Sector

3. IT Sector

4. Infrastructure Sector

5. Automobile Sector
http://en.wikipedia.org/wiki/Category:Industrial_classificationshttp://en.wikipedia.org/wiki/Category:Industrial_classificationshttp://en.wikipedia.org/wiki/Category:Industrial_classifications


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List of various sector:

SECTORS

Agro Inputs Sector IT Sector

Agriculture Sector Insurance Sector

Auto Ancillaries Sector Infrastructure Sector

Automobile Sector Mining Sector

Aviation Sector Media & Entertainment Sector

Banking Sector Medical Sector

Cement Sector Oil & Gas Sector

Chemicals Sector Paint Sector

Cigarettes Sector Paper Sector

Construction Sector Pharmaceutical Sector

Consumer Durables Sector Petrochemicals

Courier & Logistic Services Sector Power Sector

Cycle & Accessories Sector Real Estate Sector

Engineering Sector Retail Sector

Financial Institutions Sector Sugar Sector

Food Products Sector Service Sector

FMCG Sector Shipping Sector

Fertilizer Sector Steel Sector

Garment Sector Tele communication Sector

Health Care Sector Textiles Sector


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INTRODUCTION OF selected SECTORS

1.Oil & gas Sector:

The oil & gas industry in recent years has been characterized by rising

consumption of oil products, declining crude production & low reserve accretion.

India remains one of the least-explored countries in the world, with a well density

among the lowest in the world. India is the fourth largest oil consumption

zone in Asia, even though on a per capita basis the consumption is a mere 0.1

tonne, the lowest in the region- This makes the prospects of the Indian Oil

industry even more exciting.

The oil and gas industry has been instrumental in fuelling the rapid growth

of the Indian economy. The petroleum and natural gas sector which includes

transportation, refining and marketing of petroleum products and gas industry

constitutes over 15 per cent of the GDP.

India's domestic demand for oil and gas is on the rise. As per the Ministry

of Petroleum, demand for oil and gas is likely to increase which is 186.54 million

tonnes in 2008-09.

India is emerging as the global hub for oil refining with capital costs

lower by 25 to 50 per cent over other Asian countries.

Already, the fifth largest country in the world in terms of refining

capacity, with a share of 3 per cent of the global capacity, India is likely to boost

its refining capacity by 45 per cent or 65.3 to 242 mtpa (million tonne per annum)

over the next five years.


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2.Banking Sector:

Banking in India originated in the last decades of the 18th century. The

oldest bankin existence in India is the

State Bank of India,a

government-owned bank that traces its origins back to June 1806 and that is the

largest commercial bank in the country. Central banking is the responsibility of

the Reserve Bank of India, which in 1935 formally took over these

responsibilities from the then Imperial Bank of India.

The banking sector will navigate through all the aspects of the Banking

System in India. It will discuss upon the matters with the birth of the banking

concept in the country to new players adding their names in the industry in

coming few years. The banker of all banks, Reserve Bank of India (RBI), the

Indian Banks Association (IBA) & top 20 banks like IDBI, HSBC, ICICI, ABN

AMRO, etc.

With the Indian economy moving on to a high growth trajectory,

consumption levels soaring & investment riding high, the Indian banking sector is

at a watershed. Further, as Indian companies globalize & people of Indian origin

increase their investment in India, several Indian banks are pursuing global

strategies,

In the Third Quarter Review of Monetary Policy for 2009-10, the RBI

observed that the Indian economy showed a degree of resilience as it recorded a

better-than-expected growth of 7.9 percent during the second quarter of 2009-

10.

The industry has been growing faster than the real economy, resulting in

the ratio of assets of commercial banks to GDP increasing to 92.5 per cent at

end-March 2007. The Indian banks have also been doing exceptionallywell in

the financial sector with the price-to-book value being second only to china,

according to a report by (BCG) Boston Consultancy Group.
http://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/State_Bank_of_India


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3.IT Sector:

Over the past decade, the Information Technology (IT) industry has

become one of the fastest growing industries in India. The key segments that

have contributed significantly (96 percent of total) to the industrys exports

include Software & services (IT services) & IT-enabled services (ITeS) i.e.

business services. Over a period of time, India has established itself as a

preferred global sourcing base in these segments & they are expected to

continue to fuel growth in the future.

At present, India is emerging as one of the popular Software outsourcing

locations to offer cost effective software solutions. The contribution of India inSoftware Outsourcing is remarkable. One just can not reject the reality that

currently India is described as the most prospering name in software outsourcing.

Now there are several grounds for this flourishing popularity of the offshore IT

outsourcing services of India. The prime reason for choosing India, as an offshore

development partner in software outsourcing business is the availability of

enormous pool of educated manpower combined with world-class quality

offerings.

The Indian information technology (IT) industry has played a key role

in putting India on the global map. Thanks to the success of the IT industry,

India is now a power to reckon with. According to the National Association of

Software and Service Companies (NASSCOM), the apex body for software

services in India, the revenue of the information technology sector has risen from

1.2 per cent of the gross domestic product (GDP) in FY 1997-98 to an estimated

5.8 per cent in FY 2008-09. Further, the industry body expects the sector to

grow between 4 per cent and 7 per cent during 2009-10 and return to over 10 per

cent growth next year.

India's IT growth in the world is primarily dominated by IT software and

services such as Custom Application Development and Maintenance (CADM),

System Integration, IT Consulting, Application Management, Software testing,

and Web services.


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According to NASSCOM, software and services exports (including exports

of IT services, business process outsourcing (BPO), engineering services and

research and development (R&D) and software products) reached US$ 47 billion

in FY 2008-09, contributing nearly 78 per cent to the total software and services

revenue of US$ 59.6 billion.

India's domestic market has also become a force to reckon with, as the

existing IT infrastructure evolves both in terms of technology and depth of

penetration.

According to NASSCOM, domestic IT market (including hardware)

reached US$ 24.3 billion in FY 2008-09 as against US$ 23.1 billion in FY 2007-08, a growth of 5.3 per cent.

Investments:

The Andhra Pradesh Government expects the IT-related SEZs and

Software Technology Parks of India (STPI) in the State to receive about

US$ 3.27 billion investments in the next five years.

Mahindra Satyam has tied up with defence and security company Saab to

develop its operations in India for the global defence and homeland

security market. The estimated deal value is US$ 400 million.

San Francisco-based Virtualisation solutions provider VMware Inc plans to

invest US$ 100 million in India by end 2010.

The total investments of EMC Corporation, a leading global player of

information infrastructure solutions, in India will touch US$ 2 billion by

2014.

The Indian information technology sector continues to be one of the sunshine

sectors of the Indian economy showing rapid growth and promise.


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4.Infrastructure Sector:

Infrastructure is the basic physical and organizational structures needed

for the operation of a society or enterprise, or the services and facilities

necessary for an economy to function. The term typically refers to the technical

structures that support a society, such as roads, water supply, sewers, power

grids, telecommunications, and so forth.

India's Infrastructure has been expanding at an accelerated pace to

support the economic growth rate of over 9 per cent. The six core-

infrastructure industries, which account for a combined weight of 26.68 percent

in the index of industrial production (IIP), registered a growth of 8.6 percent in2006-07 as against 6.2 percent during 2005-06.

The growth has continued apace during the current fiscal, with the six

core-infrastructure industries growing at the rate of 6.9 percent during April-

September 2007. Significantly, electricity recorded a growth rate of 7.6 per cent

compared to 6.7 per cent in the same period last year. Other sectors recording

major growth include: petroleum refinery products (9.8 per cent), cement (8.3 per

cent) & finished (carbon) steel (6.6 per cent).

Infrastructure investment in India is set to grow dramatically accelerated by

5.3 percent in 2008-09. India has become a major outbound investor and people

are engaging with Indians to seek investment into their countries, said the

Minister for Road Transport and Highways, Mr

Kamal Nath,According to investment banking company Goldman Sachs,

India's infrastructure sector will require US$ 1.7 trillion investment in thenext 10-years. It also added that such investment would come more from the

domestic market than overseas.


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5.Automobile Sector:

Automobile industry is one of the fastest growing industries of the

world. With more than 2 million new automobiles rolling out each year, on

roads of India, the industry is set to grow further.

Automobile industry made its silent entry in India in the nineteenth century.

Since the launch of the first car in 1897, India automobile industry has come a

long way. Today India is the largest three wheeler market in the world and is

expected to take over China as the second largest automobile market, in the

coming years.

Some facts on Automobile industry in India:

India has the fourth largest car market in the world

India has the largest three wheeler market in the world

India is the second largest producer of two wheelers in the world

India ranks fifth in the production of commercial vehicles

The growth of the Indian middle class along with the growth of the

economy over the past few years has attracted global auto majors to the Indian

market. Moreover, India provides trained manpower at competitive costs

making India a favoured global manufacturing hub. The attractiveness of the

Indian markets on one hand and the stagnation of the auto sector in markets

such as Europe, US and Japan on the other have resulted in shifting of new

capacities and flow of capital to the Indian automobile industry.

Global auto majors such as Japanese auto majors Suzuki, Honda and

Korean car giant Hyundai are increasingly banking on their Indian operations to

add weight to their businesses, even as numbers stay uncertain in developed

markets due to economic recession and slowdown.


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According to figures released by the Society of Indian Automobile

Manufacturers (SIAM), domestic passenger car sales have increased 32.28

percent to reach 145,905 units in January 2010 from 110,300 units in the

same month last year.

Across all categories, total sale of vehicles increased 44.94 per cent to

1,114,157 units in January 2010, against 768,698 units in the January 2009.

The Indian auto industry is likely to see a growth of 10-12 percent in

sales in 2010, according to a report by the global rating firm.

India has become the second-largest maker of small cars, overtaking

Brazil. Small cars account for 80 per cent of the domestic market (up from 75 per

cent last year) and exports are growing at top speed. According to SIAM, small

car exports rise 53 percent between April and September 2009 to 197,249 units

against 129,090 units a year ago.

In order to make India a power to reckon with in the automotive sector

the government launched the Automotive Mission Plan (AMP) 2006-2016.

The vision of the AMP is "to emerge as the destination of choice in

the world for design and manufacture of automobiles and auto components

with output reaching a level of US$ 145 billion accounting for more than 10

per cent of the GDP and providing additional employment to 25 million

people by 2016." As per the AMP, it is estimated that the total turnover of the

automotive industry in India would be in the order of US$ 122 billion - US$ 159

billion in 2016.

Further, by 2016, the automotive sector would double its contribution to

the country's GDP from current levels of five percent to 10-12 per cent.


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investor behaviour sharekhan

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