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SIP Proposal Research

The document discusses the Indian stock market and savings and investment in India. It notes that India has experienced rapid economic growth and an eight-fold increase in stock market capitalization from 2001 to 2010. However, this rise in the equity markets has not been consistent with increases in market development and penetration. The two primary stock exchanges in India are the Bombay Stock Exchange and the National Stock Exchange, which account for the majority of trading. Almost 80% of trading on the NSE comes from the top five cities, with Mumbai responsible for over half of all trading. The research objective is to analyze changes in trading after moving from open-outcry to online trading and study the functions and customer relations of a stock broking firm.

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48 views

SIP Proposal Research

The document discusses the Indian stock market and savings and investment in India. It notes that India has experienced rapid economic growth and an eight-fold increase in stock market capitalization from 2001 to 2010. However, this rise in the equity markets has not been consistent with increases in market development and penetration. The two primary stock exchanges in India are the Bombay Stock Exchange and the National Stock Exchange, which account for the majority of trading. Almost 80% of trading on the NSE comes from the top five cities, with Mumbai responsible for over half of all trading. The research objective is to analyze changes in trading after moving from open-outcry to online trading and study the functions and customer relations of a stock broking firm.

Uploaded by

manku88
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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INTRODUCTION

Savings and investment are two key macro variables which play a significant role in economic growth. Global emerging economies are experiencing record savings at a time when the developed world has been witnessing a decline in gross domestic saving rates. Needless to say over here, that the best way to streamline the savings is through long-term investments in the equity markets by funding the corporate growth story. Over the past decade, Indias GDP has almost trebled from $414 billion in 2001 to $1.3 trillion in 2010. This growth in the size of the countrys economy has been more than complimented by a dramatic 8-fold surge in the market capitalization of the Indian companies from $165 billion in 2001 to $1.3 trillion in 2010. However, it does not mean that this manifold rise in the equity markets and its turnover has been consistent with the increase in the market development and penetration.

INDIAN STOCK MARKET


The Indian stock market today is actually comprised of two key entities and over 20 other exchanges. These 2 primary entities are the Bombay Stock Exchange Limited and the NSE or the National Stock Exchange of India Limited. There is an interesting past history regarding where the two markets originated from. During the 1850's, the first stock exchange in India was established when the East India Company created and developed a "community" of brokers. Up until the 1980's there was no way to measure or scale the ups and downs in stock values. However, in 1986, the BSE implemented SENSEX, which was a stock index. Three years later, India witnessed the launch of the BSE National Index. It was renamed the BSE-100 Index in October of 1996 because it was comprised of 100 different stocks listed with India's 5 major stock exchanges. Numerous banks, financial intermediaries, insurance companies, and leading financial institutions mutually own the NSE. However, the entities of management and ownership are completely separate entities. Interestingly enough, 2 of the NSE's foreign investors have taken a serious position in the NSE - Goldman Sachs and NYSE Euronext.

Almost 80% of the NSEs turnover in India continues to come from the top 5 cities of Mumbai, Delhi, Kolkata, Ahmedabad and Chennai as on 2008-09. In fact, the financial capital of India

Mumbai accounts for more than half the total NSE turnover at 55%; beating Delhi, the second largest turnover roller with a market share of 14.97%, by a huge margin.

RESEARCH OBJECTIVE
y It is to analyze the changes in trading after the exchange shifted from outcry to online trading system. y It is to study the functions of INDIANIVESH through various departments. y How many people invest in stock market through broking firms? y Is INDIANIVESH able to maintain its customer relations?

RESEARCH METHODOLOGY
The research methodology would be designed as follows: SAMPLING DESIGN The sample size would consist of people that have been investing in shares through this company or through other companies and some common people also.

QUESTIONAIRRE DEIGN The Questionairre will be designed to extract the following information:1.

2. 3.

Basic demographic information regarding the age, gender, occupation and income. Their investment in Stock Market and channel of investment. Their investing frequency and average investment per annum.

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