PRESENTATION

ON

A STUDY OF ONLINE TRADING IN INDIAN STOCK MARKET

MANSI DHINGRA

Name of Company: SUMPOORNA PORTFOLIO LTD. Topic: “A STUDY OF ONLINE TRADING IN STOCK MARKET”. This Project includes review of literature & the introduction of the company wherein this project tells about the profile of Sumpoorna Portfolio limited, Situation Review wherein it had been shown SWOT analysis of company, and finally Learning’s & Findings. Sumpoorna Portfolio Ltd. basically work to educate and empower the individual investor to make better investment decisions through quality advice and superior service. Sumpoorna is a depository participant. This means that the shares are kept in dematerialized form in Sumpoorna.

INTRODUCTION ABOUT SIP

Historically, stock markets were physical locations where buyers and sellers met and negotiated. The introduction of on-line trading would influence the investors resulting in an increase in the business of the exchange. Due to invention of online trading there had been greater benefit to the investors as they could sell / buy shares as and when required and that to with online trading. Participants in the stock market range from small individual stock investors to large hedge fund traders, who can be based anywhere in the world.

INTRODUCTION ABOUT TOPIC

A company may list its shares on an exchange by meeting and maintaining the listing requirements of a particular stock exchange. The purpose of a stock exchange is to facilitate the exchange of securities between buyers and sellers, thus providing a market place (virtual or real). The exchanges provide real-time trading information on the listed securities, facilitating price discovery.

Sumpoorna is a depository participant. This means that we can keep the shares in dematerialized form in Sumpoorna. But for this one has to the demat account in Sumpoorna. Dematerialization is the process by which a client can get physical certificates converted into electronic balances maintained in his account with the DP.

INTRODUCTION ABOUT COMPANY

The Objective is to review the study of ONLINE TRADING at Sumpoorna Portfolio Ltd as the exchange has changed it’s trading from the outcry mode to online trading on 20th December 2010.

•To know the awareness level of customers regarding online trading.

•To study the attitude of the investor.

•To know the factors influencing investment decision.

•To make a comparative study of competitors of Sumpoorna Portfolio Ltd.

•To know the online screen based trading system adopted by Sumpoorna .

OBJECTIVES

•Research Design: Exploratory research design is been taken.

•Sample Area : Noida city is being taken as a sample area for study.

•Sample Size : The research made use of primary data, which was collected by the 50 respondents but out of which only 40 has responded to the questions that’s why the research has been carried on 40 respondents.

•Data Collection Instrument: Structured Questionnaire

•Sampling Procedure : We have used a Non Probabilistic Sampling Technique that is, Convenience Sampling.

RESEARCH METHODOLOGY

DATA ANALYSIS & INTERPRETATION

The data has been analyzed by using the SPSS software. Originally SPSS is an acronym of Statistical Package for Social Science but now it stands for Statistical Product & Service Solutions. It is one of the most popular Statistical Package which can perform highly complex data manipulation & analysis with simple instruction.

Q. In which stock you most trade online?

Frequency Percent Valid Percent Cumulative Percent

Valid

Mutual Funds 10 25.0 25.0 25.0

F&O Equities 2 5.0 5.0 30.0

Others 13 32.5 32.5 62.5

Equity 11 27.5 27.5 90.0

Commodities 4 10.0 10.0 100.0

Total 40 100.0 100.0

INTERPRETATION: 28% of respondents invests in Equities, 25% trade in MutualFunds, 10% trade in Commodities, 5% in F&O Equities and 32% in Others.

Q . Do you believe that your trader/broker is very successful in online trading?

Frequency Percent Valid Percent Cumulative

Percent

Valid

Strongly Agree 6 15.0 15.0 15.0

Agree 16 40.0 40.0 55.0

Moderate 12 30.0 30.0 85.0

Disagree 2 5.0 5.0 90.0

Strongly Disagree 4 10.0 10.0 100.0

Total 40 100.0 100.0

INTERPRETATION: 40% of respondents are agree that their trader is very successful in online trading, whereas 15% are strongly agree, 5% are disagree ,10% are strongly disagree and 30% are moderate view

Q .Are the stock broking services provided by Sumpoorna is satisfactory

Frequency Percent Valid Percent Cumulative

Percent

Valid

Strongly Agree 6 15.0 15.0 15.0

Agree 15 37.5 37.5 52.5

Moderate 12 30.0 30.0 82.5

Disagree 3 7.5 7.5 90.0

Strongly Disagree 4 10.0 10.0 100.0

Total 40 100.0 100.0

INTERPRETATION: 38% of respondents are agree that stock broking services provided by Sumpoorna is satisfactory, whereas 15% are strongly agree, 7% are disagree ,10% are strongly disagree and 30% are moderate views.

Q . What is your opinion relating to the rate of interest of margin funding facility

of Sumpoorna ?

Frequency Percent Valid Percent Cumulative

Percent

Valid

Excellent 6 15.0 15.0 15.0

Average 14 35.0 35.0 50.0

Poor 4 10.0 10.0 60.0

Good 16 40.0 40.0 100.0

Total 40 100.0 100.0

INTERPRETATION: 40% of respondents say that the margin funding facility of Sumpoorna is good ,35% of respondents say average,15% says excellent and other remaining say poor.

Q . Any other company whose service you like?

Frequency Percent Valid Percent Cumulative

Percent

Valid

Indian Bulls 13 32.5 32.5 32.5

Sumpoorna 9 22.5 22.5 55.0

Sharekhan 4 10.0 10.0 65.0

Angel Broking 7 17.5 17.5 82.5

Karvy 7 17.5 17.5 100.0

Total 40 100.0 100.0

INTERPRETATION: Majority of respondents feel that the service of Indian Bulls is good than other companies including Sumpoorna.

Correlations

Do you believe that

your trader/broker is

very successful in

online trading?

Are the stock broking

services provided by

Sumpoorna is

satisfactory ?

Do you believe that your trader/broker is very successful in online

trading?

Pearson Correlation 1 .804**

Sig. (2-tailed) .000

N 40 40

Are the stock broking services provided by Sumpoorna is

satisfactory ?

Pearson Correlation .804** 1

Sig. (2-tailed) .000

N 40 40

**. Correlation is significant at the 0.01 level (2-tailed).

INTERPRETATION:The analysis was done by performing a two tail test on Pearson correlation. It has been found that there is high positive correlation of 0.804 at 1% level of significance between two factors i.e. satisfaction level of services provided by the company and success of Sumpoorna in online trading of stock.

In today’s scenario when all services are going to be online or in electronic form Sumpoorna Portfolio Ltd. is creating awareness of online trading so that the client can trade from anywhere from the world. Sumpoorna Portfolio Ltd. takes care of client portfolio and whenever the value of his/her portfolio will decrease by 30% then that client is always informed by his/her Relationship Manager. Sumpoorna is a company that has helped in handling a vast amount of transactions and this can be an efficient trading, delivering, settlement system with adequate protection to investors.The broker’s has a greater scope than compared to the earlier times because of invention of online trading.

CONCLUSION

FINDINGS•The investment decision of investors is influenced by their own decision and through friends & relatives.•Majority of investors invest only upto 10% of their annual income in share market.•Sumpoorna Portfolio Ltd has a great competition with other broking agencies like Kodak, Angel etc. because they are also using new technologies to retain customers.•The number of players is increasing at a steady rate and today there are over a dozen of brokerage houses who have opted to offer net trading to their customer and prominent among them are Sumpoorna, India bulls, Kotak street, Karvy.•Investors perception changes with the fluctuations in share market.• On applying correlation analysis (using SPSS) on the primary data collected, it has been found that there exists a positive relationship between the two factors viz. the satisfaction level of services provided by Sumpoorna and its success in online trading.

•Allocation of news in such a way that Sumpoorna Portfolio Ltd maintain a consistency level throughout the month by maintaining its relationship with clients.•Can improve in that areas where service provide by other major competitors is very strong in this area. , these areas are using T+5method of trading.• To increase the awareness level of the company among the public.• 24*7 customer support can increase its value.• The company must spread the awareness to its clients for the service like F&O Equities to increase the satisfaction level of clients as we have find that there is positive aspect between the satisfaction level of services provided by Sumpoorna success in online trading.

SUGGESTIONS & RECOMMENDATIONS

WEBSITES :•www.sumpoornaonline.com•www.investopedia.com•www.bseindia.com•www.nseindia.com•www.moneycontrol.com

NEWSPAPER :•The Times of India •The Economic Times

REFERENCES

RESEARCH PAPERS:

•Bae, K., Bailey, W., Mao, C.X. (2006), Stock Market Liberalization and the Information Environment, Journal of International Money and Finance, 25, 404-428.

•Baker, H.K. (1996), Trading Location and Liquidity: An analysis of U.S. Dealer and Agency Markets for Common Stocks. Financial Markets, Institutions & Instruments, 5(4), 1-51.

•Dijk (2007). Economic Policy, The Size Effect in Equity Returns. Empirical Research Findings. Journal of Financial Management and Analysis, 21(1).Available at http://papers.ssrn.com/sol3/results.cfm last accessed on July15,2016.