A report

on

“A study on Automobile Sector in India”

By
Rishab Gupta
PGFB1841
2018-20 Batch

Submitted in partial fulfilment of the requirement of

PGDM Program at

Jaipuria Institute of Management

Jaipur
 Declaration

I do hereby declare that this project entitled, “A study on Automobile Sector in India and its

performance in the Indian Stock Market” with Jmarathon Advisory Services Private Ltd

from Hyderabad has been completed by me and it is an original work. This report is being

submitted for fulfilling the requirement of Post Graduate Diploma in Management as a Summer

Training Project, at Jaipuria Institute of Management, Jaipur.

It has never been submitted nor been published elsewhere.

Rishab Gupta

PGFB1841

Date:

Place:
Certificate of Organisation
 Certificate of Originality
Date

To Whomsoever It May Concern

This is to certify that the Summer Internship Project Report titled “A study on Automobile Sector

in India and its performance in the Indian Stock Market”, submitted by Mr. Rishab Gupta

represents an original work done by the student mentioned herein and has been submitted in partial

fulfilment of the requirements of the PGDM Programme (2018-20 Batch).

Name:

Dr. Daneshwar Sharma

 ACKNOWLEDGEMENT
Words put on paper are mere ink marks, but when they have a purpose there exist a thought behind
it. We too have a purpose to express our gratitude towards those individuals without whose
guidance the project the project would not have possible.
I would like to thank my industry mentor Mr. Sai Sriram for giving me this golden opportunity to
work direct under him.
I am extremely thankful and pay our gratitude towards my faculty mentor Dr. Daneshwar Sharma
for his valuable guidance and support on completion of this project.
I extend my gratitude towards JAIPURIA INSTITUTE OF MANAMENT, JAIPUR for giving me
this opportunity.
At last but not least gratitude goes to all who helped me during this project and a special thanks to
my family and friends for always supporting me.
Any omission in this brief acknowledgement does not mean lack of gratitude.
THANK YOU
 Table of Content

S. No. Topic Page No.

1 Declaration (i)

2 Certificate from Organization (ii)

3 Certificate from faculty guide (iii)

4 Acknowledgement (iv)

5 Executive Summary 1

6 Introduction 3

7 Organization Overview 5

8 Industry Analysis 12

9 Research Analysis 16

10 Conclusion 63

11 SIP Experience and Key Learning 65

12 Annexures 67
EXECUTIVE SUMMARY
 Chapter 1- Introduction

“A study on Automobile Sector in India and its performance in the Indian Stock Market”.
Stock market which is also known as the equity market or the share market is a combination of
buyers and sellers where they can buy the stocks and sell the stocks at the same time. This kind of
transaction called economic transaction not physical transaction because the facility of physical
transaction is not available in this network.
The participants of the stock market includes individual investors of retail, investors of different
institutes in the form of mutual funds, insurance companies and banks etc., and the corporations
also which are publicly trading into their own shares.
Here the company called Jmarathon is providing the same kind of platform where individual can
invest in the stock market including both Indian stock market and forex market and start trading
their money with the different stocks or different organization. In stock market trading is the
exchange or transfer of money in the form stocks from one party to the other means from seller to
the buyer. This purchasing needs an agreement of both the parties on a price. The participants of
the stock market may vary from the small investors to the large investors.
For trading, it is not necessary to invest a huge or large amount of money, one can start from a
very small investment also. If the results are good or positive then one can increase their amount
of investment.
Similarly, Jmarathon if giving both the platforms Indian and Forex stock market where one can
start from a very small investment also. After enrolling into an online course or after subscribing
their course, they teach different kind of methods and strategies that help an individual in trading.
If someone is keenly interested in trading or stock market then the company also add the one in
their watch list where they can see the list of top companies which are running into the profit and
then invest in those companies only. Jmarathon also providing the mentorship to the people who
are making profit continuously and guides them further to make more and more profit through the
stock market.
In this research, I assess the thinking of the people who are interested in the stock market that what
they think before investing their money into the stock market and about their expectations from
stock market. Also, the reasons of the people who are not invested or interested in the stock market.
Also get to know to know the satisfaction level and experience of the people who already invested
in the market from some months or years.
 Chapter 2- Organisational Overview

COMPANY OVERVIEW

Industry Retail

Founded 30th October, 2006

Headquarters Mumbai, India

Area Served India

Chairman Mukesh Ambani

CEO V Subramaniam

J Marathon is the company which provides different kinds of services like trading, consulting,
investment guidance, financial risk, advisory services and & education in Indian and Forex market
which can help you in that how can you invest in long term investment. In this era or scenario,
which is constantly changing where everybody invest in either short term or long term investment.
So after getting the experience of 8 years in the industry of financial services, they decided to open
their own company or advisory firm based on some principles like transparency, independence
and client advocacy. They provides all kind of information regarding stock market, mutual funds
and trading.
They taught you many technologies that how to trade and make money easily. The tag line of the
company is “LEARN TO EARN” which simply means that if you want to earn money then the
first step is learn. They provide training regarding the same through the videos and lectures. Their
only aim is to provide services to their customers with full dedication and integrity to fulfill their
expectations and build a strong relationship with them. They also provide services totally based
on technology to their customers so that they can manage their portfolio in a better way and finally
reach to their financial goals. Their main focus is to being the most genuine, cause or elicit and
most effective provider of these kind of services related to financial.
They come along with the intention to provide support and guidance to new comers to the trading
world. They focuses in training and educating individuals about global market and to sharpen their
skills to participate in the financial world. The knowledge and the years of experience in trading
have customized the training program and made it simple for an individual to understand the
financial market.
There are 2 profiles in the company in which the company deals:
1. Managing of the portfolios: In this profile, company is managing the portfolio of their
customers in the forex market only. In portfolio, the half amount is paid by the customer
and the equal is also invested by the company also. Then the account of the customer
opened in the forex by the company only and will be traded by both the parties and profit
also credit to both the parties time to time.
2. Subscription of course: In this profile, there is an online course in the form of the videos.
There are around forty-one videos into the course which covers all the information
regarding the stock market and the trading. There are all the strategies in the course about
the stock market that how to trade and when to trade and in which company to trade. For
the videos, one has to subscribe the videos by paying 3000 bucks to the company. There
are some profits also of this course that company also provides a certificate that one can
get after giving a test on the completion of all the videos.
Vision, Mission and Objective

Mission:
To maintain a meaningful and life-long relationship with the customers by providing them good
quality services and address every aspect of their financial related issues.

Vision:
To be the most trusted and respected professional services firm recognized by our clients
delivering excellent services, which is valued for money and more than their expectations.

OBJECTIVES OF THE COMPANY

1. The main objective of the company is to find or recognize the real need of the customer
and then provide them a suitable product for their need.
2. Delivery of the perfect, prompt and professional services to the customers.
3. Try their best to avoid the miss-selling of their any product.
4. No obligations on the manners of the clients that how they invest but yes advise them on
their investments considering the prevailing market conditions.
5. For the customer satisfaction, try their best to use their domain knowledge and skills in
multi discipline financial services.
We our governed by fundamental values: -

1) Quality: - We do not compromise. We have a passion for the best quality

2) Innovation: - We are modern and desire to enthuse our customer

3) Ambition: - We set excessive objectives and push to obtain the great effects

4) Honesty: - We are sincere toward our clients, also while it is able to be ugly

5) Integrity: - We maintain our phrase, defend confidentiality, and preserve an excessive level of

integrity
Services provided by the company:

They enables individuals or private people to counsel with venture experts before making changes
to their portfolios.
Intraday calls around 500 per month, this means in the subsidiaries advertise, you might need to
buy offers or sell them at a cost later. Call choices are those agreements gives a right to the
purchaser but not the commitment for the purchase of hidden offers or for records in the prospects.
Then Short term calls around 2000 per month, short term call related to exchange of securities just
to know or conclude whether an exchange was started by selling first or purchasing first. Before
purchasing short exchange is started to selling with an expectation to repurchase the lower stock
at a lower cost and understand a benefit.
At last Long term calls 10,000 per month, it means financial specialists will normally purchase
call choices when they expect that a hidden cost will increment altogether sooner rather than later,
however don’t have enough cash to purchase the genuine stock.
 Chapter 3- Industry Analysis

SWOT ANALYSIS
STRENGTH:
 Consulting and training
 Knowledgeable traders
 Highly professional and skilled staff emphasis on building stronger bond with customers
WEAKNESS:
 Lack of awareness among people as it is a start up
 Lack of trust
 Non-availability of the resources
 Lack of interest in financial market
OPPORTUNITY:
 Arrival of new technologies
 Expansion in emerging economies
 Growing forex markets
 Emerging Indian stock markets
 The external environmental analysis may reveal certain new opportunities for profit and
growth
 Expansion in online teaching sector
 More concentration on high net worth individuals and upper middle class
THREATS:
 New regulations
 Government policies and global financial crises
 Forex and Indian market are very volatile
 Very aggressive strategies by big players in the market
PESTEL ANALYSIS
POLITICAL:
Political situation of any country is an important factor to keep in mind always that how it can
affect any organization or industry when government form any new policy due to which whole
structure of the organization may change. Ex:
 Tax policy
 Government stability and changes
 Government involvement in trade union and agreements
ECONOMICAL:
These are factors of an economy’s performance which create impacts on an organization and also
create long term effects. Like if the inflation rate starts to increase then all the prices will start to
increase and the rate of the investment decreases eventually.
 Credit availability
 Availability of disposable income
 Price fluctuation
SOCIAL:
These factors include the social environment of the market and the standard components like
cultural trends, population and demographic analytics.
 Attitude towards saving and investing
 Attitude towards product quality and customer service
TECHNOLOGICAL:
Technological factors can affect the day to day operations of a business or organization like may
be in automation and technological awareness possesses by the market. An organization never
follow the same strategies and indicators that are already practiced, they always form new
strategies with the help of the technology.
 Access to new technology
 Internet infrastructure
ENVIRONMENTAL:
This includes all the factors that influence the surrounded environment.
 Natural disasters and climate effecting stock market
 Geographical location
 War disputes between the countries
LEGAL:
There are certain rules, regulations, laws and policies of the country which may affect the
environment of any organization or business.
 Privacy and security
 Consumer laws
 Safety standards
 Labour laws

As JMARATHON being a start-up company and a developing company as well. So, may be this
analysis doesn’t work exactly but they are trying their best to maintain their standard as per the
requirements of the consumers.
PORTERS FIVE FORCE MODEL

Threat of new entrants:

In this industry, entrance of any new firm is not easy because it requires a huge capital to establish
themselves in the market. It is LOW because there are many government policies and laws which
had to be followed strictly and there is a requirement of license also for this sector. So, it is difficult
to raise funds and enter into the market.

Threat of substitute products:

As the company is into currency and commodity market, so they have substitute in the form to
switch market. It is HIGH because it has substitute in the form of market. Alternates are much
more popular among the people and they had high demand in the past.

Bargaining power of the buyers:

Basically, this segment is concentrated on high net. The consumers of this product are not fixed,
they can be the people of the corporate and non-corporate as well. This power is LOW because in
this segment there are no chances for the bargaining of the customers. Factors like new regulations,
taxes, policies and laws made by the government can effect this force in future.

Bargaining power of suppliers:

This power of the suppliers is LOW because the suppliers can’t make the demand of brokerage or
other charges from the company because the company have the option of changing the broker.
Real time bidding will also lead to increase the demand of some portals. Employee or work force
with proper knowledge is limited.

Competition among rivalry:

The power of this force is HIGH because they also provide the same kind of services to the people.
Plus the trading platform of these companies is also same. The companies which are already in the
market from long time have their high profile customers and those customers are highly loyal
towards the company. Already existing firms are also forming unique campaigns for their clients
and also have the expertise and good manpower which are also loyal towards the firm.
 Chapter 3- Research Analysis

RESEARCH METHODOLOGY:

This research includes all the responses of the people and students who invest their money in the
stock market and also who are interested in the stock market. This design is descriptive research
design. The source of data is Primary.

OBJECTIVE:

The main aim of the research is to find out that what people really thinks about the stock market.
The expectations & the perception of the investors before investing their money into the stock
market and the experience & satisfaction of the investors who already invested in the stock market.
Also, the perception of the people towards the financial products of the company.
This research will help the company to find out and opt some new ideas to gain more customer
base in future.
Following work has been done to accomplish the above objectives: -

1) Firstly, a structured questionnaire has been made.

2) Circulated it among the people who has kind of interest in the stock market

3) Interacting with different types of customer’s and collecting their response in the structured

format.

4) To know their view about different attributes which are mentioned in the format.

Data collection technique: -

1) Questionnaire

2) Observation
Research instrument: -

 Questionnaire

 Direct interaction with the Customer’s

Sampling Plan: -

 Sample Size 97 responses

 Sampling Method Simple random

 Sampling Area Jaipur and Delhi

Sample Design

1) Graphical Representation

2) Data Representation

Tool Used for Data Analysis

1) Bar Charts

2) Pie-Chart

3) Tables

Limitation of the study: -

 The study is limited only to the city of Jaipur.

 Time was a major concerned.

 Certain questions were not answered with justice.

Data Interpretation and Analysis

Number of responses: 97

Demographic

1) Age

0-20 years 9

20-35 years 85

Above 35 3

Age

Male
43%
Female
57%

Interpretation:

In the above pie chart, we came to know that 9% people are from the age group of 0-20 years, 88%

are from 20-35 years and only 3% are from above 35. This directly means the market segment for

this product is age group that lies between 20-35 years.

2) Gender

Male 55

Female 42

Gender

55

42

Male Female

Interpretation:
From the above chart, we came to know the survey if filled by 55 males and 42 females.
Males are more in comparison to the females. This also shows the number of male
investors are more than female investors.
3) Occupation

Student 73

Employee 17

Self-employed 3

Retired 3

others 1

Chart Title
6% 4%

0-1 year
27% 1-2 years

63% 3-5 years

Above

Interpretation:
The above shows that the survey is filled by 73 students, 13 employee people, 3 self-
employed people, 3 retired and by 1 other. This also shows the interest of the students or we
can also say that the interest of today’s generation towards the stock market is increasing.
 4) Income

0-20,000 71

20,000-30,000 6

30,000-50,000 8
50,000-100,000 6
Above 6

Chart Title

61

26

6 4

0-1 year 1-2 years 3-5 years Above

Interpretation:
This pie chart shows that 73.2% people has less than 20,000 income, 6.2% people has 20,000-
30,000 income, 8.25 has 30,000-50,000 income, 6.2% has 50,000-100,000 income and 6.2 has
above than 100,000 income.
5) Aware of online trading?

Yes 81

No 16

Chart Title

61

26

0-1 year 1-2 years

Interpretation:
6) Which mode do you prefer?

Online 75
Offline 22

Chart Title

61

26

0-1 year 1-2 years

7) What is your perception about investing?

Safe 68
Not safe 29

Chart Title

30%
0-1 year
1-2 years
70%
8) What is your opinion about investing in stock market?

It offers an investment facility 54

It makes you earn quick profit 23

It offers easy liquidity 20

Chart Title

61

26

0-1 year 1-2 years 3-5 years

9) How frequently you invest?

Daily 6
Weekly 8
Monthly 30

Yearly 53

Chart Title

61

26

6 4

0-1 year 1-2 years 3-5 years Above

10) State the approximate size of investment

0-50,000 85
50,000-100,000 8
100,000-200,000 2
Above 2

Chart Title

6%4%
0-1 year
1-2 years
27%
3-5 years
63%
Above
11) How much risk you can take at a time?

Whole money 6
Half money 4
Depend on market 53
Can’t say 34

Chart Title

6
1
26

61

0 10 20 30 40 50 60 70

Above 3-5 years 1-2 years 0-1 year

12) What are your expectations from the market?

High return 49
Moderate return 41
Other 7

Chart Title

61

26

0-1 year 1-2 years 3-5 years

13) What is your preferred time period for the returns while investing?

0-2 years 58
2-5 years 28
More than 5 years 11

Chart Title

6%

0-1 year
28%
1-2 years

66% 3-5 years

14) What is your objective behind investing?

Tax benefits 26
Earn high dividends 26
Capital appreciation in long run 19
Other 26

Chart Title

6%4%
0-1 year
1-2 years
27%
3-5 years
63%
Above
15) How much is your experience in the market?

0-1 year 61
1-2 years 26
3-5 years 6
Above 4

Chart Title

6
1
26

61

0 10 20 30 40 50 60 70

Above 3-5 years 1-2 years 0-1 year

16) In how many companies you have invested?

0-5 companies 72
5-10 companies 17
10-15 companies 5
Above 3

Chart Title
35

30
31
25 28 29

20

15

10

5 9

0
1

Not interested High price Availability of other resources Confused

17) How is your experience till now?

Good 26
Neutral 64
Bad 7

Chart Title

Not interested

41%
46% High price

Availability of other
resources
13%
18) Are you satisfied with Indian stock market?

Satisfied 22
Neutral 69
Dis-satisfied 6

Chart Title

Not interested

41%
46% High price

Availability of other
resources
13%
19) Are you satisfied with your returns?

Satisfied 27
Neutral 60
Dis-satisfied 10

Chart Title

Not interested

41%
46% High price

Availability of other
resources
13%
20) Are you interested in an online for the trading?

Yes 41
No 56

Chart Title

31

Not interested High price

21) How much you can pay for that online course?

1,000-3,000 83
3,000-5,000 6
5,000-10,000 5
Above 3

Chart Title

Not interested

30% 32% High price

Availability of other
resources
9%
29% Confused
22) If not interested, what is the reason?

Not interested 31
High price 9
Availability of other resources 28
Confused 29

Chart Title

31
28 29

Not interested High price Availability of other resources Confused

 Chapter 5- Findings and Conclusion

Findings of the study:

1. Market segment of the product is the age group lies between 20-35 years
2. Youth generation and students are more interested towards stock market
3. Most of the people are aware about the online trading and they are more interested in the
online trading rather than the offline trading
4. If we talk about the perception, 70% people think that it is safe
5. It provides an opportunity or an investment facility to the people
6. 50% people expect high returns from the market
7. The experience of the people towards the stock market is neutral
8. About 70% people are satisfied with the Indian stock market and their returns
9. Around 43% people are interested in an online course provided by the company
10. And the rest who are not interested they are confused because there are many options
available in the market, according to them same material available in the market which
costs less to them than this course

Suggestions:

Limitations of the study:

1. Filled by the limited people only
2. Time is also a factor
3. Data is collected from a fixed age group only
4. Not considered all the people working in the financial sector
5. In the market, there are more than thirty companies which are dealing into the same
segment. So, analyzing them is difficult
6. This research is limited to the people only who are in the trading field