analysis of indian stock exchange

CHAPTER-1(INTRODUCTION TO TOPIC)

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INDIAN STOCK EXCHANGES

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.

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http://en.wikipedia.org/wiki/Bond_(finance)

http://en.wikipedia.org/wiki/Derivative_(finance)

http://en.wikipedia.org/wiki/Over-the-counter_(finance)

http://en.wikipedia.org/wiki/Stock_valuation

http://en.wikipedia.org/wiki/Free_market

http://en.wikipedia.org/wiki/Stock_market

http://en.wikipedia.org/wiki/Secondary_market

http://en.wikipedia.org/wiki/Primary_market

http://en.wikipedia.org/wiki/Primary_market

http://en.wikipedia.org/wiki/Electronic_communication_network

http://en.wikipedia.org/wiki/Listing_(finance)

http://en.wikipedia.org/wiki/Stock_exchange#cite_note-2

http://en.wikipedia.org/wiki/Open_outcry


http://en.wikipedia.org/wiki/Derivative_(finance)

http://en.wikipedia.org/wiki/Unit_trust

http://en.wikipedia.org/wiki/Stock

http://en.wikipedia.org/wiki/Dividend

http://en.wikipedia.org/wiki/Security_(finance)


http://en.wikipedia.org/wiki/Stock

http://en.wikipedia.org/wiki/Trader_(finance)

http://en.wikipedia.org/wiki/Brokerage_firm

http://en.wikipedia.org/wiki/Exchange_(organized_market)


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, MCX’SX and rest

of these are Regional Stock Exchange

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CHAPTER-2

(INTRODUCTION TO COMPANY)

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ABOUT BOMBAY STOCK EXCHANGE

Introduction

Established in 1875, BSE Ltd. (formerly known as Bombay Stock Exchange Ltd.), is Asia’s first Stock Exchange and one of India’s 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 world’s 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

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Ltd. (CDSL) arm.

BSE’s 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-TV18’s 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. Name Designation

PJ. Towers Floor

Contact No.

1Mr. Ashishkumar Chauhan

MD & CEO 15th +91 22 2272 8045 / 55

2Mr. Balasubramaniam V

Chief Business Officer

27th +91 22 2272 8419

3 Mr. Nehal VoraChief Regulatory Officer

24th +91 22 2272 8108

4 Mr. Nayan Mehta Chief Financial 25th +91 22 2272 8167

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Officer

5 Mr. Kersi TavadiaChief Information Officer

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.

PurposeCommitted to improve the financial well-being of people.

VisionTo continue to be a leader, establish global presence, facilitate the financial well being of people.

ValuesNSE is committed to the following core values :

Integrity Customer focused culture Trust, respect and care for the individual Passion for excellence

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Teamwork

Corporate StructureNSE 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-to-day management of the Exchange is delegated to the Managing Director who is supported by a team of professional staff.

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Board of Directors

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Sr.No.

Name & Company Designation

1Mr. S. B. MathurFormer ChairmanLife Insurance Corporation of India

Chairman

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Mr. Ravi NarainFormer Managing Director & CEONational Stock Exchange of India Limited

Vice Chairman[Shareholder Director]

3Ms. Chitra RamkrishnaNational Stock Exchange of India Limited

Managing Director & CEO

4 Mr. Abhay Havaldar Managing Director - General Atlantic LLC

Shareholder Director

5Mr. S. B. MainakManaging DirectorLife Insurance Corporation of India


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Mr. Y. H. MalegamChairman EmeritusM/s. S. B. Billimoria & Co., Chartered Accountants

Public Interest Director

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Dr. KRS Murthy Professor & Former DirectorIndian Institute of Management, Bangalore


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Mr. Prakash ParthasarathyChief Investment OfficerAzim Premji Investment Private Limited


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Dr. S. SadagopanDirector Indian Institute of Information Technology, Bangalore


10Mr. Justice B.N. Srikrishna (Retd.) Former Judge, Supreme Court of India


Mrs. Pratima M. UmarjiFormer Principal Secretary


ABOUT MCX’SX 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 India’s 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.

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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)

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CHAPTER-3

(ANALYSIS OF INDIAN STOCK EXCHANGES)

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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

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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.

The Link between the Economy and the Stock Market

The primary link between the stock market and the economy — in the aggregate — is that an

increase in money and credit pushes up both GDP and the stock market simultaneously.

A progressing economy is one in which more goods are being produced over time. It is real

"stuff," not money per se, which represents real wealth. The more cars, refrigerators, food,

clothes, medicines, and hammocks we have, the better off our lives. We saw above that, if goods

are produced at a faster rate than money, prices will fall. With a constant supply of money,

wages would remain the same while prices fell, because the supply of goods would increase

while the supply of workers would not. But even when prices rise due to money being created

faster than goods, prices still fall in real terms, because wages rise faster than prices. In either

scenario, if productivity and output are increasing, goods get cheaper in real terms.

Obviously, then, a growing economy consists of prices falling, not rising. No matter how many

goods are produced, if the quantity of money remains constant, the only money that can be spent

in an economy is the particular amount of money existing in it (and velocity, or the number of

times each dollar is spent, could not change very much if the money supply remained

unchanged).

This alone reveals that GDP does not necessarily tell us much about the number of actual goods

and services being produced; it only tells us that if (even real) GDP is rising, the money supply

must be increasing, since a rise in GDP is mathematically possible only if the money price of

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individual goods produced is increasing to some degree.[5] Otherwise, with a constant supply of

money and spending, the total amount of money companies earn — the total selling prices of all

goods produced — and thus GDP itself would all necessarily remain constant year after year.

"Consider that if our rate of inflation were high enough, used cars would rise in price just like

new cars, only at a slower rate."

The same concept would apply to the stock market: if there were a constant amount of money in

the economy, the sum total of all shares of all stocks taken together (or a stock index) could not

increase. Plus, if company profits, in the aggregate, were not increasing, there would be no

aggregate increase in earnings per share to be imputed into stock prices.

In an economy where the quantity of money was static, the levels of stock indexes, year by year,

would stay approximately even, or drift slightly lower — depending on the rate of increase in the

number of new shares issued. And, overall, businesses (in the aggregate) would be selling a

greater volume of goods at lower prices, and total revenues would remain the same. In the same

way, businesses, overall, would purchase more goods at lower prices each year, keeping the

spread between costs and revenues about the same, which would keep aggregate profits about the

same.

Under these circumstances, capital gains (the profiting from the buying low and selling high of

assets) could be made only by stock picking — by investing in companies that are expanding

market share, bringing to market new products, etc., thus truly gaining proportionately more

revenues and profits at the expense of those companies that are less innovative and efficient.

The stock prices of the gaining companies would rise while others fell. Since the average stock

would not actually increase in value, most of the gains made by investors from stocks would be

in the form of dividend payments. By contrast, in our world today, most stocks — good and bad

ones — rise during inflationary bull markets and decline during bear markets. The good

companies simply rise faster than the bad.

Similarly, housing prices under static money would actually fall slowly — unless their value was

significantly increased by renovations and remodeling. Older houses would sell for much less

than newer houses. To put this in perspective, consider that if our rate of inflation were high

enough, used cars would rise in price just like new cars, only at a slower rate — but just about

everything would increase in price, as it does in countries with hyperinflation The amount by

which a home "increases in value" over 30 years really just represents the amount of purchasing

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http://mises.org/daily/4654#note5


power that the dollars we hold have lost: while the dollars lost purchasing power, the house —

and other assets more limited in supply growth — kept its purchasing power.

Since we have seen that neither the stock market nor GDP can rise on a sustained basis without

more money pushing them higher, we can now clearly understand that an improving economy

neither consists of an increasing GDP nor does it cause the overall stock market to rise.

This is not to say that a link does not exist between the money that companies earn and their

value on the stock exchange in our inflationary world today, but that the parameters of that link

— valuation relationships such as earnings ratios and stock-market capitalization as a percent of

GDP — are rather flexible, and as we will see below, change over time. Money sometimes flows

more into stocks and at other times more into the underlying companies, changing the balance of

the valuation relationships.

IMPACT OF PEOPLE’S SENTIMENTS ON MARKET

Why then is the market running ahead of reality? There could be two reasons. One is about sentiment. The one thing a BJP victory would change is the negativity now floating like smog above the Indian economy. Widely seen as business-friendly, a Modi-led government would certainly not do anything to worsen the gloom. It may come as a breath of fresh air.

Though bad laws—like the Food and Land Bills—cannot be easily de-legislated, in India laws can be made to atrophy by any political dispensation that is disinclined to implement them. Since many of the reforms needed to move the economy forward can be executed without major legislative effort, one can assume that Narendra Modiwill make a difference in hidden ways even without fooling around with laws.

The second reason why the market is feeling more cheerful than it should is its growing impatience with zero returns. The fact is no one—barring a few punters—has really made money in the stock market for the last five years, and the Sensex is really no higher than what it was in 2008 despite an average growth of over 6 percent a year, during the same period.

If you were to look at the numbers that relate growth to market, each one of them shows that the indices have nowhere to go but up. The Sensex’s price-to-earnings ratio is barely 17—which makes it attractive. This ratio moves in the range of 11 to 27, and 27 is clearly further off from the index right now than 11. In short, one should bet on the upward trajectory, assuming the sky

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is not going to fall on our heads.

Another broad factor that favours a market bounce is the market capitalization-to-GDP ratio. This ratio is currently just 65 percent of GDP whereas in 2008 the ratio was 1:1—ie, market cap was equal to GDP. What this suggests is that the market has not factored in five years of growth—however slow—into its valuations, and this needs to change.

Then there is the lack of bounce in alternate asset classes. Real estate attracted a lot of investment in the boom years. People have still not given up the false belief that property prices have nowhere to go but up. But gravity is catching up on this sector, too. Gold has crashed globally and, but for the exertions of one P Chidambaram, it would have crashed in India too. It is only an illogical import duty structure that is holding up domestic prices of gold, encouraging illegal sources of supply. As for bonds and bank fixed deposits, we are clearly into financial repression. The returns on safe avenues are well below consumer inflation—and could trend even lower in the short run.

Start ruling out one investment option after another, and what you are left with is stocks. Can stocks fall? Of course, they can, but here we are up against another reality. Right now, stock prices are being held up primarily because the large buyers—foreign institutional investors (FIIs)—are trapped between a weak rupee and a shallow market. If the FIIs, who have around $200 billion invested in Indian equity, try to sell, the market crashes so badly that they end up shooting themselves in the foot. The FIIs know that their best bet is to sit on their investments and wait for the markets to revive, and the rupee to strengthen under a new government before they start churning. But then, if the economy does revive, it makes no sense for them to sell.

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 RBI’S 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.

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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.

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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 don’t save much and no, your taxes don’t 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 people’s 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 isn’t 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 simplicity’s sake,

imagine the government to be a person called Gopi who earns Rs 12 lakh a year. Gopi’s 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.

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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 can’t be reduced. These

items are the bulk of expenses.

There is thus only one way to fix India’s 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 didn’t

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 acti-

vity (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.

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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 don’t 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 don’t 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 under-

utilized.

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

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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 PM’s ‘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 don’t 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 uncle’s

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 don’t come, we don’t 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.

22


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%

23


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.

The Fundamental Source of All Rising Prices

For perspective, let's put stock prices aside for a moment and make sure first to understand how

aggregate consumer prices rise. In short, overall prices can rise only if the quantity of money in

the economy increases faster than the quantity of goods and services. (In economically

retrogressing countries, prices can rise when the supply of goods diminishes while the supply of

money remains the same, or even rises.)

When the supply of goods and services rises faster than the supply of money — as happened

during most of the 1800s — the unit price of each good or service falls, since a given supply of

money has to buy, or "cover," an increasing supply of goods or services. George Reisman offers

us the critical formula for the derivation of economy-wide prices:[1]

In this formula, price (P) is determined by demand (D) divided by supply (S). The formula shows

us that it is mathematically impossible for aggregate prices to rise by any means other than (1)

increasing demand, or (2) decreasing supply; i.e., by either more money being spent to buy

goods, or fewer goods being sold in the economy.

In our developed economy, the supply of goods is not decreasing, or at least not at enough of a

pace to raise prices at the usual rate of 3–4 percent per year; prices are rising due to more money

entering the marketplace.

24



The same price formula noted above can equally be applied to asset prices — stocks, bonds,

commodities, houses, oil, fine art, etc. It also pertains to corporate revenues and profits. As Fritz

Machlup states:

It is impossible for the profits of all or of the majority of enterprises to rise without an increase in

the effective monetary circulation (through the creation of new credit or dishoarding).[2]

To return to our focus on the stock market in particular, it should be seen now that the market

cannot continually rise on a sustained basis without more money — specifically bank credit —

flowing into it.

There are other ways the market could go higher, but their effects are temporary. For example,

an increase in net savings involving less money spent on consumer goods and more invested in

the stock market (resulting in lower prices of consumer goods) could send stock prices higher,

but only by the specific extent of the new savings, assuming all of it is redirected to the stock

market.

The same applies to reduced tax rates. These would be temporary effects resulting in a finite and

terminal increase in stock prices. Money coming off the "sidelines" could also lift the market, but

once all sideline money was inserted into the market, there would be no more funds with which

to bid prices higher. The only source of ongoing fuel that could propel the market — any asset

market — higher is new and additional bank credit. As Machlup writes,

If it were not for the elasticity of bank credit … a boom in security values could not last for any

length of time. In the absence of inflationary credit the funds available for lending to the public

for security purchases would soon be exhausted, since even a large supply is ultimately limited.

The supply of funds derived solely from current new savings and current amortization

allowances is fairly inelastic.… Only if the credit organization of the banks (by means of

inflationary credit) or large-scale dishoarding by the public make the supply of loanable funds

highly elastic, can a lasting boom develop.… A rise on the securities market cannot last any

length of time unless the public is both willing and able to make increased purchases.

25



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.” Sebi’s 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 country—making

regional bourses less relevant. “In today’s 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

26


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 Sebi’s 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 regulator’s powers

to de-recognize an exchange.

27


Share Market trends of BSE of last three Months

28


29


30


CHAPTER-4(OBJECTIVES OF THE STUDY)

31


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 last 3 months

32


CHAPTER-5(RESEARCH METHODOLOGY)

33


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

34


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.

Sampling Plan

a. Sampling units – it consist of investors.

b. Sampling size – 50 investors were questioned.

c. Sampling Area - Bathinda and Shri Muktsar Sahib

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.

35


CHAPTER-6

(DATA ANALYSIS &

INTERPRETATION)

36


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 RESPONSE PERCENTAGEYES 48 96NO 2 4

TOTAL 50 100

48

2

AWARENESS OF STOCK EXCHANGE

YESNO

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.

37


2.) Which type of Indian Economy is there?Respondents were asked about which type of economy does exist in india now a days.

OPTIONS RESPONSE PERCENTAGESaving Based Economy 45 90

Expenditure Based Economy

5 10

Total 50 100

45

5

TYPE OF INDIAN ECONOMY

Saving basedExpenditure based

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.

38


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 RESPONSE PERCENTAGEYES 45 94NO 3 6

TOTAL 48 100

45

3

Column1

YESNO

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.

39


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 RESPONSE PERCENTAGEMARKET TRENDS 40 80

GURBANI LIVE 4 8SPORTS 3 6MOVIES 3 6TOTAL 50 100

40

4

33

WHAT HITS MORE FREQUENTLY

MARKET TRENDSGURBANI LIVESPORTSMOVIES

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.

40


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 RESPONSE PERCENTAGENSE 14 29BSE 31 65

MCX’SX 1 2RSE 2 4

TOTAL 48 100

14

31

1 2

STOCK EXCHANGE PREFFERED

NSEBSEMCX'SXRSE

INTERPRETATION:- 31 respondents said that they prefer BSE for investment while the response for other stock exchange was 14, 2, 1 for NSE, MCX’SX, RSE respectively.

41


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 RESPONSE PERCENTAGENEW GOVERENMENT 14 29

HOLD OF GOVERENMENT IN

PARLIAMENT

12 25

WEAK OPPOSITION 16 33INFLATION 6 13

TOTAL 48 100

14

12

16

6

REASON FOR IMPROVEMENT

NEW GOVERENMENTHOLD OF GOVERENMENTWEAK OPPOSITIONINFLATION

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.

42


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 RESPONSE PERCENTAGEGREAT EXTENT 9 19SOME EXTENT 15 31

NO IMPACT 14 29CAN’T SAY 10 21

TOTAL 48 100

9

1514

10

IMPACT OF NEW BUDGET

GREAT EXTENTSOME EXTENTNO IMPACTCAN'T SAY

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.

43


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 RESPONSE PERCENTAGEMONETARY 23 48FISCAL 25 52TOTAL 48 100

2325

FACTOR EFFECTED

MONETARYFISCAL

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.

44


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 RESPONSE PERCENTAGEYES 40 83NO 8 17TOTAL 48 100

40

8

Sales

YESNO

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.

45


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 RESPONSE PERCENTAGECRISIS IN FOREIGN ECONOMY

15 31

WAR IN FOREIGN ECONOMY

10 21

EXPOSURE OF INDIAN COMPANY TO MNC

18 37

EXPOSURE TO FOREIGN ECONOMY

5 11

TOTAL 48 100

15

10

18

5

GLOBAL ECONOMY IN INDIAN ECONOMY

CRISISWAREXPOSURE TO MNCEXPOSURE TO FOREIGN INCOME

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.

46


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 RESPONSE PERCENTAGESTRONGLY AGREE 24 50

AGREE 12 25STRONGLE DISAGREE 3 6

DISAGREE 8 16NEUTRAL 1 3

TOTAL 48 100

24

12

3

8

1

Sales

STRONGLY AGREEAGREESTRONGLY DISAGREEDISAGREENEUTRAL

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 précised and there is 1 respondent who has a neutral reaction.

47


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 RESPONSE PERCENTAGEBOON 42 87BANE 6 13

TOTAL 48 100

42

6

GROWTH- BOON OR BANE

BOONBANE

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.

48


FINDINGS

Both foreign and local investors are buying in the hope that BJP reforms will revive the Indian economy.

Mr Modi plans to revive economic growth in India by boosting investment.

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

49


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.

50


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.

51


CONCLUSION

I n short, the market mavens are saying that despite depressing economic news—weak industrial

output growth, a stagnant GDP, double-digit inflation, and a slippery fiscal situation—a change

in the political dispensation will be enough to drive stock prices. They are also penciling in the

hope that good politics will henceforth drive good economics. The FIIs have no option but to

believe in the India story even if the proof is currently skimpy. They would like to believe in the

Narendra Modi bounce whether it exists or not

So, let us stick ourneck out and say this: The odds are that the stock markets will rise in 2014.

Wewould bet the Sensex will hit 28,000 by the end of the fiscal 2014-15 with or without

Narendra Modi . With Narendra Modi , it could easily scale 30,000.

52


CHAPTER-7(BIBLIOGRAPHY)

53


BIBLIOGRAPHY

1 Magazines:-

• “DALAAL STREET”

2 WEBSITES

http://www.indianjournals.com/glogift2k6/glogift2k6-1-1/theme_2/Article%204.htm

http://www.timesofindia.indiatimes.com

www.indiabulls.com

www.nseindia.com

www.bseindia.com

www.sebi.com

3. NEWSPAPER

THE ECONOMIC TIMES

54

http://www.indiabulls.com/

http://www.timesofindia.indiatimes.com/


ANNEXURE

55


QUESTIONNAIRE(Analysis of Indian Stock exchange - for last three months)

Name

Age

Gender:- Male ( ) Female ( )

Current status :- Student ( ) Serviceman ( )

Professional ( ) Businessman ( )

Monthly Income (Rs.) :- 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) Sportsb) Gurbani Live d) Movies

5) Which Stock exchange do you prefer for investment ?

56


a) National stock exchange c) MCX’SX stock exchangeb) 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 Governmentb) Strong Hold of the Government in the Parliamentc) Weak Opposition in the Parliamentd) Inflation

7) To what extent you think the new budget had impacted this market trends:-a) To great extent c) No impactb) 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 economyc) Exposure of Indian companies to multinational companiesd) 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) Neutralb) 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?

_____________________________________________________________________

_____________________________________________________________________

57

analysis of indian stock exchange

Documents

national stock exchange

certain stock exchange

mission of stock exchange

stock markets

singapore exchange

indian stock exchanges

indias leading exchange

field of capital market