SUMMER INTERNSHIP PROJECT REPORT

ON
ANALYSIS OF INDIAN STOCK MARKET
IN

“R.D. Investment Consultants”

GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY

Submitted To: Submitted By:

Priyanka Attri Deepanshu Singh

(Assistant Professor) 04114201719

BBA V(A) Morning

JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL

VASANT KUNJ, NEW DELHI-110070

The success and final outcome of this project required a lot of guidance and assistance

from many people and I have got this all along work. Whatever I have done is only due to

such guidance and assistance and I would not forget to thank them.

I express my deep gratitude and sincere thanks to Mrs. Priyanka Attri mam whose

excellent teaching has left on incredible print on my mind, leading me to prepare this

project in a better way which could not have been possible without his support and active

guidance.

Hereby I declare that all the information supported by one in this project is my own and

true to the best of my knowledge.

DEEPANSHU SINGH

04114201719
 CERTIFICATE

I hereby certify that the work which is being presented in the BBA Minor Project Report

entitled “Analysis of Indian Stock Market” in “R.D. Investment Consultants”, in

partial fulfillment of the requirements for the award of the Bachelor of Business

Management and submitted to the Department of Management of JIMS- Jagannath

Institute of Management School is an authentic record of my own work carried out during

a period from July 2021 to September 2021 under the supervision of Mrs. Priyanka

Attri.

The matter presented in this Project Report has not been submitted by me for the award

of any other degree elsewhere.

Project Guide
Date:
 EXECUTIVE SUMMARY

As a part of academic requirement and completion of BBA program, I have been

assigned to complete internship report on “Analysis of Indian Stock Market.” under the

guidance of Mrs. Priyanka Attri. This project is based on “ANALYSIS OF INDIAN

STOCK MARKET” at R.D. Investment Consultants. Further, this Project includes review

of literature & the introduction of the company wherein this project tells about the profile

of R.D. Investment Consultants, Situation Review wherein it has been shown SWOT

analysis of company, financial analysis of company and finally Learning’s & Findings.

R.D. Investment Consultants basically work to educate and empower the individual

investor to make better investment decisions through quality advice and superior service.

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 TABLE OF CONTENTS

CHAPTER 1 – INTRODUCTION

i. Introduction to industry 8

ii. Objectives & Scope of Study 16

iii. Review of Literature 17

iv. Research Methodology 23

v. Limitations of Study 25

CHAPTER 2 - Profile of the Organization 26

CHAPTER 3 – Analysis and Interpretation of Data 30

CHAPTER 4 –Conclusions and Recommendations 40

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Chapter – 1
Introduction

7
 1.1 INTRODUCTION

CONSUMER BEHAVIOUR:

Consumer behaviour is the study of individuals, groups, or organizations and the processes they use to

select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the

impacts that these processes have on the consumer and society. Customer behaviour study is based on

consumer buying behaviour, with the customer playing the three distinct roles of user, payer and

buyer. Research has shown that consumer behaviour is difficult to predict, even for experts in the

field.

Overview of Online

Trading Stocks

The stock or capital stock of a business entity represents the original capital paid into or invested in

the business by its founders. It serves as a security for the creditors of a business since it cannot be

withdrawn to the detriment of the creditors. Stock is distinct from the property and the assets of a

business which may fluctuate in quantity and value. Buying a stock for the long term means that you

want to own part of a company and you think that in the future the company will be profitable. If you

buy stock in a company and the company performs well, the stock's price should rise. If the company

fails, then the stock should fail you, too and go down. The stock exchanges actually compete with

each other for these listings, since companies that attract more trading make more money for the stock

exchange that listed it. Company stocks are assigned a "ticker" or trading symbol by the listing

exchange. You may notice some well-chosen tickers that are easy to remember, like "DNA" for the

company Genentech, a biotechnology firm. Or some companies' ticker is the same as its name, Nike

for example.

Stock market
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A stock market or equity market is a public market (a loose network of economic transactions, not a

physical facility or discrete entity) for the trading of company stock and derivatives at an agreed price;

these are securities listed on a stock exchange as well as those only traded privately. The size of the

world stock market was estimated at about $36.6 trillion US at the beginning of October 2008. The

total world derivatives market has been estimated at about $791 trillion face or nominal value, 11

times the size of the entire world economy. The value of the derivatives market, because it is stated in

terms of notional values, cannot be directly compared to a stock or a fixed income security, which

traditionally refers to an actual value. Moreover, the vast majority of derivatives 'cancel' each other

out (i.e., a derivative 'bet' on an event occurring is offset by a comparable derivative 'bet' on the event

not occurring). Many such relatively illiquid securities are valued as marked to model, rather than an

actual market price. The stocks are listed and traded on stock exchanges which are entities of a

corporation or mutual organization specialized in the business of bringing buyers and sellers of the

organizations to a listing of stocks and securities together. The largest stock market in the United

States, by market cap is the New York Stock Exchange, NYSE, and while in Canada, it is the Toronto

Stock Exchange.

Trading

Historically, stock markets were physical locations where buyers and sellers met and negotiated. With

the improvement in communications technology in the late 20th century, the need for a physical

location became less important, as traders could transact from remote locations. Participants in the

stock market range from small individual stock investors to large hedge fund traders, who can be

based anywhere. Their orders usually end up with a professional at a stock exchange, who executes

the order. Some exchanges are physical locations where transactions are carried out on a trading floor,

by a method known as open outcry. This type of auction is used in stock exchanges and commodity

exchanges where traders may enter "verbal" bids and offers simultaneously. The other type of stock

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exchange is a virtual kind, composed of a network of computers where trades are made electronically

via traders. The shares of a company may in general be transferred from shareholders to other parties

by sale or other mechanisms, unless prohibited. Most jurisdictions have established laws and

regulations governing such transfers, particularly if the issuer is a publicly-traded entity. The desire of

stockholders to trade their shares has led to the establishment of stock exchanges. A stock exchange is

an organization that provides a marketplace for trading shares and other derivatives and financial

products. Today, investors are usually represented by stock brokers who buy and sell shares of a wide

range of companies on the exchanges. A company may list its shares on an exchange by meeting and

maintaining the listing requirements of a particular stock exchange. Actual trades are based on an

auction market model where a potential buyer bids a specific price for a stock and a potential seller

asks a specific price for the stock. (Buying or selling at 31 market means you will accept any ask price

or bid price for the stock, respectively.) When the bid and ask prices match, a sale takes place, on a

first-come-first-served basis if there are multiple bidders or askers at a given price. The purpose of a

stock exchange is to facilitate the exchange of securities between buyers and sellers, thus providing a

marketplace (virtual or real). The exchanges provide real-time trading information on the listed

securities, facilitating price discovery.

History

The two main stock markets of India are:

 Bombay Stock Exchange (BSE)

 National Stock Exchange (NSE)

Bombay Stock Exchange (BSE):-

Established in 1875, BSE (formerly known as Bombay Stock Exchange Ltd.), is Asia's first & fastest

Stock Exchange with the speed of 200 micro seconds and one of India's leading exchange groups.

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Over the past 140 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. It also has a platform for trading in

equities of small-and-medium enterprises (SME). 32 More than 5500 companies are listed on BSE

making it world's No. 1 exchange in terms of listed members. The companies listed on BSE command

a total market capitalization of USD 1.68 Trillion as of March 2015. It is also one of the world's

leading exchanges (5th largest in March 2015) 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 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 India Innovation Award for the Big Data implementation , ICICI 33 Lombard & ET Now Risk

Management BFSI Company 2013, SKOCH Order of Merit Certificate was awarded to BSE for E

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-Boss for qualifying amongst India's Best 2013, 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

Introduction to BSE

Bombay Stock Exchange is the oldest stock exchange not only in India but in entire Asia. Its history is

synonymous with that of the Indian Share Market history. BSE started functioning with the name, The

Native Share and Stock Broker's Association in 1875. It got Government of India's recognition as a

stock exchange in 1956 under Securities Contracts (Regulation) Act, 1956. At the time of its origin it

was an Association of Persons but now it has been transformed to a corporate and demutualized

entity. BSE is spread all over India and is present in 417 towns and cities. The total number of

companies listed in BSE is around 3500.The main index of BSE is called BSE SENSEX or simply

SENSEX. It is composed of 30 financially sound company stocks, which are liable to be reviewed and

modified from time-to-time.

National Stock Exchange (NSE):-

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. 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
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transparent trading, clearing and settlement mechanism, and has witnessed several innovations in

products & services viz. demutualization of stock exchange governance, screen based trading,

compression of settlement cycles, dematerialization and electronic transfer of securities, securities 35

lending and borrowing, professionalization 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

Introduction to NSE:

National Stock Exchange (NSE) founded although late than BSE, is currently the leading stock

exchange in India in terms of total volume traded. It is also based in Mumbai but has its presence in

over 1500 towns and cities. In terms of market capitalization, NSE is the second largest bourse in

South Asia. National Stock Exchange got its recognition as a stock exchange in July 1993 under

Securities Contracts (Regulation) Act, 1956. The products that can be traded in NSE are: -

 Equity or Share

 Futures (both index and stock)

 Options (Call and Put)

 Wholesale Debt Market

 Retail Debt Market

Securities and Exchange Board of India (SEBI):

The responsibility for regulating the securities market is shared by Department of Economic Affairs

(DEA), Department of Company Affairs (DCA), Reserve Bank of India (RBI) and Securities and

Exchange Board of India (SEBI). SEBI or Securities and Exchange Board of India is entitled to

protect the investors' interests, regulate and develop securities market in India. The Securities and

Exchange Board of India (SEBI) is the regulatory authority in India established under Section 3 of

SEBI Act, 1992. SEBI Act, 1992 provides for establishment of Securities and Exchange Board of
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India (SEBI) with statutory powers for (a) protecting the interests of investors insecurities (b)

promoting the development of the securities market and (c) regulating the securities market. Its

regulatory jurisdiction extends over corporates in the issuance of capital and transfer of securities, in

addition to all intermediaries and persons associated 37 with securities market. It passes laws for

streamlining the Indian share market for efficient outcomes.

Roles of SEBI:-

SEBI has been obligated to perform the aforesaid functions by such measures as it Thinks fit. In

particular, it has powers for:

 Regulating the business in stock exchanges and any other securities markets

 Registering and regulating the working of stock brokers, sub–brokers etc.

 Promoting and regulating self-regulatory organizations

 Prohibiting fraudulent and unfair trade practices

 Calling for information from, undertaking inspection, conducting inquiries and audits of the

stock exchanges, intermediaries, self –regulatory organizations, mutual funds and other

persons associated with the securities market.

Covid-19:-
COVID-19, Corona Virus Disease Primary victim was noticed at Wuhan, capital of the

Hubei province, China on November 17, 2019. However, in India the 1st case was

reported in Kerala on 30th January 2020, since then as on 30th April 2020, “the total

number of coronavirus positive cases in India have increased to 33610” (Ministry of

Health and Family Welfare, 2020) ,and the curve isn't yet flattened. The spread of

coronavirus has resulted in stock-price volatility, decreases in nominal interest rates, and

certain contractions of real economic activities all round the world.

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 Impact on Stock Market:-
The performance in the stock market across the world is despondency. These affect in the continues

crashes in the stock markets in almost all part of the world. Stock market and Financial markets in

India are happen sharp volatility now days of the falling in worlds markets. That falling in line with

global benchmark indices as can see the domestic market usually follows the global indices. Overseas

investors flying to the safety of dollar backed assets from emerging markets has led to a slowdown in

India’s stock market. Here is the small details of Indian stock market, S&P BSE Sensex 42273 level

on January 20, 2020 which down at the level of 25638 and close at the level of 26674. Markets Small,

Mid and Large caps have corrected sharply from their peaks. In Financial Year 2020 the Midcaps

index fell by 26% while SENSEX fell by 22

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 1.2 OBJECTIVE OF THE STUDY

The Objective is to review the study of ANALYSIS OF STOCK MARKET DURING COVID-19 at

R.D. Investment Consultants

 To study the attitude of the investor.

 To know the factors influencing investment decision.

 To study on retail investors/traders behaviour in the stock market.

 To study investors/traders perception and psychology during the pandemic.

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 1.1 REVIEW OF LITERATURE

Charles (1999) has analyzed that the astonishing growth in Americans' stock portfolios in the 1990s

has been a major force behind the growth of consumer spending. This article reviews the relationship

between stock market movements and consumption. Using various econometric techniques and

specifications, the authors find that the propensity to consume out of aggregate household wealth has

exhibited instability over the postwar period. They also show that the dynamic response of

consumption growth to an unexpected change in wealth is extremely short-lived, implying that

forecasts of consumption growth one or more quarters ahead are not typically improved by accounting

for changes in existing wealth.

Bhardwaj (2003) has stated the literature on globalization, He found the pervasiveness of the west’s

perception of the world effect on Indian investors that affects the trends in investor’s choice. They are

hugely affected by the west’s views and so changes in Indian trends occur.

Ranganathan (2003), has stated the investor behavior from the marketing world and financial

economics has brought together to the surface an exciting area for study and research: behavioral

finance. The realization that this is a serious subject is, however, barely dawning. Analysts seem to

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treat financial markets as an aggregate of statistical observations, technical and fundamental analysis.

A rich view of research waits this sophisticated understanding of how financial markets are also

affected by the ‘financial behavior’ of investors. With the reforms of industrial policy, public sector,

financial sector and the many developments in the Indian money market and capital market, mutual

funds that has become an important portal for the small investors, is also influenced by their financial

behavior. Hence, this study has made an attempt to examine the related aspects of the fund selection

behavior of individual investors towards Mutual funds, in the city of Mumbai. From the researchers

and academicians point of view, such a study will help in developing and expanding knowledge in

this field.

Shrotriya (2003) conducted a survey on investor preferences in which he depicted the linkage of

investment with the factor so considered while making investment. He says “There are various factors

and their linkage also. These factors help us how to ensure safety, liquidity, capital appreciation and

tax benefits along with returns.”

Dijk (2007) has conducted 25 years of research on the size effect in international equity returns. Since

Banz's (1981) original study, numerous papers have appeared on the empirical regularity that small

firms have higher risk-adjusted stock returns than large firms. A quarter of a century after its

discovery, the outlook for the size effect seems bleak. Yet, empirical asset pricing models that

incorporate a factor portfolio mimicking underlying economic risks proxied by firm size are

increasingly used by both academics and practitioners. Applications range from event studies and

mutual fund performance measurement to computing the cost of equity capital. The aim of this paper

is to review the literature on the size effect and synthesize the extensive debate on the validity and

persistence of the size effect as an empirical phenomenon as well as the theoretical explanations for

the effect. We discuss the implications for academic research and corporate finance and suggest a

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number of avenues for further research.

Vasudev (2007) analyzed the developments in the capital markets and corporate governance in India

since the early 1990s when the government of India adopted the economic liberalization programme.

The legislative changes significantly altered the theme of Indian Companies Act 1956, which is based

on the Companies Act 1948 (UK). The amendments, such as the permission for nonvoting shares and

buybacks, carried the statute away from the earlier “business model” and towards the 'financial model'

of the Delaware variety. Simultaneously, the government established the Securities Exchange Board

of India (SEBI), patterned on the Securities and Exchange Commission of US. Through a number of

other policy measures, the government steered greater investments in the stock market and promoted

the stock market as a central institution in the society. The article points out that the reform effort was

inspired, at least in part, by the government’s reliance on foreign portfolio inflows into the Indian

stock market to fund the country’s trade and current account deficits.

Johnson (2008) has stated that Product quality is probably under-valued by firms because there is

little consensus about appropriate measures and methods to research quality. The authors suggest that

published ratings of a product's quality are a valid source of quality information with important

strategic and financial impact. The authors test this thesis by an event analysis of abnormal returns to

stock prices of firms whose new products are evaluated in the Wall Street Journal. Quality has a

strong immediate effect on abnormal returns, which is substantially higher than that for other

marketing events assessed in prior studies. In dollar terms, these returns translate into an average gain

of $500 million for firms that got good reviews and an average loss of $200 million for firms that got

bad reviews. Moreover, there are some important asymmetries. Rewards to small firms with good

reviews of quality are greater than those to large firms with good reviews. On the other hand, large

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firms are penalized more by poor reviews of quality than they are rewarded for good reviews. The

authors discuss the research, managerial, investing, and policy implications.

Patnaik and shah (2008) has analysed on the preferences of foreign and domestic institutional

investors in Indian stock markets. Foreign and domestic institutional investors both prefer larger,

widely dispersed firms and do not chase returns. However, we and evidence of strong differences in

the behavior of foreign and domestic institutional investors.

Bhatnagar (2009) has analyzed of Corporate Governance and external finance in transition

economies like India. The problem in the Indian corporate sector is that of disciplining the dominant

shareholder and protecting the minority shareholders. Clearly, the problem of corporate governance

abuses by the dominant shareholder can be solved only by forces outside the company itself

particularly that of multilateral financial institutions in the economic development. India has relied

heavily on external finance as their domestic saving rates have been much lower than their investment

rates. The less promising prospects for the global supply of external finance the need for an increase

in the multilateral financial institutions. India being a transition economy is changing from a centrally

planned economy to a free market. It is undergoing economic liberalization, macroeconomic

stabilization where immediate high inflation is brought under control, and restructuring and

privatization in order to create a financial sector and move from public to private ownership of

resources. These changes often may lead to increased inequality of incomes and wealth, dramatic

inflation and a fall of GDP.

Mayank (2009) has analysed the role of two important forces - the regulator and the capital market as

determinant of external finance in transition economies analyses the changing pattern and future

prospectus of external finance to India and reviews the role of external finance. Under this framework,

the study evaluates current Indian corporate governance practices in light of external finance.

Rajeshwari and Moorthy has conducted the study and analysed that Mutual Fund is a retail product

designed to target small investors, salaried people and others who are intimidated by the mysteries of

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stock market but, nevertheless, like to reap the benefits of stock market investing. At the retail level,

investors are unique and are a highly heterogeneous group. Hence, their fund/scheme selection also

widely differs. Investors demand inter-temporal wealth shifting as he or she progresses through the

life cycle. This necessitates the Asset Management Companies (AMCs) to understand the

fund/scheme selection/switching behaviour of the investors to design suitable products to meet the

changing financial needs of the investors. With this background a survey was conducted among 350

Mutual Fund Investors in 10 Urban and Semi Urban centers to study the factors influencing the

fund/scheme selection behaviour of Retail Investors. This paper discusses the survey findings. It is

hoped that it will have some useful managerial implication for the AMCs in their product designing

and marketing.

Atkinson (2000), there are several studies in the literature that attempt to discuss some of the

problems and challenges associated with online trading. The first problem discussed in the literature is

hidden costs and deceptive advertising associated with online trading. Supported this contention that

buried in all the online trading hype resides the fine print.

Mahender, ShaliniAggarwal and H L Verma (2014) proposed the Investors’ perceptions on

Trading Volume and Stock Return Volatility in Indian Stock Market. What an Individual Investor

perception towards market how they invest, How their Income, Education, Profession,

Knowledge react/respond to the Market and to volatile market. As the Conclusion there is cause

and effect relationship between the Market and Investment in the Market. People’s style of to

invest money based on their knowledge, experienced.

Swati Modi, GLS University, India (2017) proposed financial and non-financial variables impact on

market capitalization in Indian stock market. Firm size is one of the major factors that might influence

the relevance of financial and non- financial variables. The whole research is divided into small,

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medium and large firms on the basis of market capitalization to see if there are differences among the

small, medium and large firms. Revealed from paper that the analysis that financial and non- financial

variables have a significant impact on market capitalization.

Routedge Taylor & Francis Group (2020) talks about Effects of COVID-19 outbreak on the

Nigerial Stock Exchange Performance. This study considered the COVID-19 period from 2nd

January 2020 to 16th April 2020 for the data of Stock Market performance. The study

recommended that political and economic policy such as stable political environment, incentive to

indigenous companies, diversification of the economy, flexible exchange rate regime be

implemented so as to improve the financial market and to attract more and new investors to the

Nigerian Stock Exchange.

Raghu Kumari P.S. &YashShantilal Jain (2020) talks about corporate governance impacted on

stock market. Volatility in stock markets is caused by many external and internal factors, one of

them being governance in Indian companies. This study also points out that the corporate

governance, in consideration, doesn’t have significant influence on share prices, but in association

with other internal factors, which provide a robust framework for company analysis.

Dr. S.C.B. SAMUEL ANBU SELVAN, N.VIVEK (2020) proposed Banking sector need to

monitor the current and potential effects of COVID-19 on their businesses and financial

reporting. Agility in providing reliable information through meaningful disclosures in the

financial statements is important to maintain trust. The financial reporting issues with respect to

credit risk assessment, going concern, liquidity, fair value, hedging strategies, loan covenants,

mortality claims would need careful.

Bastian Gribisch’s (2018) approach to forecasting multivariate stock market volatility

underlying stocks are traded at the New York Stock Exchange (NYSE). Although the applied

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statistical and economic evaluation criteria are based on completely different objective functions,

they overall result in the same models as the best performing ones, including the set of factor

model specifications.

ARUNA MURTHY AND ACHARYA H. RAJESH’s (2020) study analysis whether the

COVID-19 number of cases has generated any shock in stock market. Our analysis reveals that

there is no significant negative impact on Indian stock market. Hence, Researcher can conclude

that by far outbreak of COVID-19 has positive influence on stock market. In order to capture oil

price shock, previous studies have used the traditional method of modelling shock by taking

standard deviation of the series. This concept was proposed to modelled oil price shock by taking

the standard deviation of the oil price.

Dr. SarikaMahajan (2020) revealed that it is necessary to provide all required and financial help to

enable health system to deal with the crisis. Provide lifelines to vulnerable households and firms. Such

lifelines also help to avoid permanent damage to prospects for sustainable and inclusive growth. Once

normal business conditions resume, support the recovery

1.2 RESEARCH METHODOLOGY

The research methodology defines what the activity of research is, how to proceed, how to measure

progress, and what constitutes success. It provides us an advancement of wealth of human knowledge,

tools of the trade to carry out research, tools to look at things in life objectively; develops a critical

and scientific attitude, disciplined thinking to observe objectively (scientific deduction and inductive

thinking); skills of research particularly in the ‘age of information’. Also it defines the way in which

the data are collected in a research project. In this paper it presents one components of the research

methodology from a real project; the theoretical design and framework respectively.

Sources of Data: - Data, facts, figures, other relevant material of past and present and surveying are

the basis for study and analysis. Without an analysis of factual data no specific inferences can be
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drawn on the questions under study. Inferences based on imagination or guesses cannot provide

correct answer to research questions. The relevance adequacy and reliability of data determine the

quality of the findings of a study.

For the purpose of the present study, data from two sources has been collected, namely primary data

and secondary data.

 PRIMARY DATA: Primary data is source from which the researcher collects the data. It is a

firsthand data, which is used directly for the analysis purposes. Primary data always gives a

researcher a fairer picture. In the present study primary data has been collected using

questionnaires. For the purpose of collecting the same, 50 respondents have been randomly

selected. Even the 62 response of the respondents was taken into consideration. In this study,

primary data plays a vital role for analysis, interpretation, conclusion and suggestions.

 SECONDARY DATA: Secondary data is data which is collected and compiled for other

purposes. Secondary data also plays a key factor in providing more information which will

influence the analysis. Few of the main sources of secondary data include newspapers,

magazines, business journals, and internet.

 Research Design: Exploratory research design is been taken.

 Exploratory research design: Exploratory research is research conducted for a

problem that has not been clearly defined. It often occurs before we know enough to

make conceptual distinctions or posit an exploratory relationship. Exploratory research

helps determine the best research design, data collection method and selection of

subjects.

 Sample Area: Panipat 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

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 has been carried on 40 respondents.

 Data Collection Instrument: Structured Questionnaire

 Sampling Procedure: We have used a Non Probability Sampling Technique (Convenience

Sampling).

1.3 LIMITATION OF THE STUDY

 It is always a problem to get an enthusiastic response. There were not many willing

participants; lack of cooperation remains an aberration in most of the survey based

researches.–

 The respondents’ behavior changes according to stock market fluctuations.

 The study is only restricted to the Panipat city.

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 Time constraint is also one of the factor

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 Chapter – 2
Profile of the
Organization

Name of the company: - R.D Investment Consultants

Year of Establishment: - 15th November 1996

Address: - DS No. 22, Sector 13-17 Commercial Complex, Panipat, Haryana

Nature of Business: - Service Provider

Services: - Depository Services, Online

Slogan: - Your Guide to The Financial Jungle

Vision: - To be the best retail brokering Brand in the retail business of stock market

Mission: - To educate and empower the individual investor to make better investment decisions

27
through quality advice and superior service.

Account opening :-

Opening a DP account with R.D. Investments

 One can open a Depository Participant (DP) account, either through a R.D. Investments

branch or over phone.

 There is no fee for opening DP accounts with R.D Investement. However a nominal deposit

(refundable) is charged towards services which will be adjusted against all future billings.

 All investors have to submit their proof of identity and proof of address along with the

prescribed account opening form.

CUSTOMER OF R.D. INVESNTMENTS

 Business class people (high class)

 High Net worth Individuals

 Service class people

 Government Employees

 Young Adults (19-30 yrs.)

 Adults (35-50 yrs.)

Its core services are:-

 Equities, and Derivatives trading on the National Stock Exchange of India Ltd. (NSE), and

Bombay Stock Exchange Ltd. (BSE)

 Commodities trading on National Commodity and Derivatives Exchange India (NCDEX) and

Multi Commodity Exchange of India Ltd. (MCX)

 Depository services,  Online trading services

28
  IPO Services

 Dial-n-Trade

 Portfolio management services

 Fundamental and Technical Research services

 In addition to this they also provide advisory services and distributions for mutual funds.

Documents Required:

 3 photographs ( signed across)

 Photo Identification Proof - any of the following - Voter ID/Driving License/Passport.

 Address Proof any of the following - Voter ID/Driving License/ Passport/ Bank statement or

pass book sealed and attestation by bank official/ BSNL landline bill.

 A crossed Cheque favouring “R.D. Investment Consultants”. Of the required amount.

 Copy of PAN Card is mandatory.

 Bank and address proof declaration.

 PAN name discrepancy form.

These documents may not be consumer friendly but it is to avoid illegal transaction and to prevent

black money this ensures that money invested is accounted.

Features of Trading With R.D. Investments:-

 Freedom from paperwork

 Instant credit and money transfer

 Trade from any net enabled PC

 After hour orders

 Online orders on the phone

 Real-time Portfolio tracking

30
 Chapter – 3
Analysis &
Interpretation

Q1) Are you a Male or Female?

31
 Male Female

Interpretation

The above pie chart shows that numbers of Males and Females had Invested/Traded in

Stock Market. From the respondents 80% are of the Male and 20% are of the Female.

Q2) What is your age?

32
 Age Group

>40

31-40

18-30

0 5 10 15 20 25 30 35 40 45

Male Female

Interpretation

The study revealed that from the Investors/Traders who Invest/Trade in stock market were

mainly age group of 18 to 30 years old. Among them 31 were Male and 9 were Female which

accounts 80% of the total sample, while 8% were of the sample were from age group 31 to

40 Years. The data reveled that high proportion of the investors were from the 18 to 25 years

old that define younger age group. This represent that younger generation more aware about

stock market as well as trading/investing in stock market.

Q3) How long have you been investing/trading in the Stock Market?

33
 0-3years 3-5years 5-10years

Interpretation

Among the 50 respondent 6 people are Trading/Investing in Stock market since 5 to 10

years, 7 people were Trading/Investing in Stock market since 3 to 5 years, 37 people were

Trading/Investing in Stock market since 0 to 3 years. That define that 74% of the respondent

were trade/invest in stock market recently say since 0 to 3 years.

Q4) How do you invest/trade in the Stock Market?

Interpretation

Among the respondent 2 people were Trading/Investing in Stock market Professionally, 14

people were Trading/Investing in Stock market Family Money, 34 people were

Trading/Investing in Stock market Personal Money. It denoted that 68% of the people invest

their own/personal money in stock market. While 4% Invest/Trade Professionally.

35
 Q5) Do you invest in volatile market?

Yes No Sometimes

Interpretation

When stock market is volatile, 17 people were Investing/Trading in stock market, 5 people

were not Investing/Trading in stock market while 28 people were Investing/Trading

sometimes, based on market volatility, in stock market. It define that 56% of people were

Trade/Invest sometimes based on market condition in volatile Market. People Trade/Invest in

stock market is 34% of respondent. Highest people Trade/Invest in stock market based on

condition because of such volatility matters theirs profit and loss in their portfolio.

Q6) Was the stock market highly volatile from March 2020 to December 2020?
36
 50

45

40

35

30

25

20

15

10

0
Yes No Don't Know

Interpretation

Data received from questionnaire that 47 people agree, 2 people disagree that Stock Market

was highly volatile between month of March 2020 and December 2020. While 1 person

didn’t know that Stock Market was highly volatile between month of March 2020 and

December 2020. 94% of the respondent agreed with the market was highly volatile in Month

of March 2020 to December 2020. That showed the effect of COVID-19 is impacted highly

in volatility of Indian Stock Market.

Q7) Have you invested during the period March 2020 to December 2020?
37
 40

35

30

25

20

15

10

0
Yes No

Interpretation

From the data 34 people Invested/Traded and 16 people not Invested/Traded in Stock market between

March 2020 and December 2020. People Invested/Traded in stock market is highest that 68% of the

people. While 32% of people did not Invested/Traded in Stock Market.

38
Q8) Are your techniques changed for trading/investing after Covid-19?

Fundamentally Technically No change

Interpretation

Above chart shows Trading/Investing Techniques are changed after COVID-19 Pandemic of

respondents. Among the 64% of the people have changed their technique after the COVID-19

Pandemic and 36% of the people have not change their technique after the COVID-19

Pandemic. 46% of the respondents have changed their technique to fundamental analysis

whereas 18% have changed to technical analysis.

39
Q9) Have your trading/investing plans changed after the Pandemic?

40

35

30

25

20

15

10

0
Yes No

Long term Short Term

Interpretation

Above chart shows Trading/Investing Plans are changed after COVID-19 Pandemic of respondents.

From data 70% of the people have changed their plan after the COVID-19 Pandemic and 30% of the

people have not changed their plan after the COVID-19 Pandemic. From who agreeing to change their

technique 56% of the people trade/invest for short term while 14% of people trade/invest long-term in

stock market. It is observed that the highest number of people have changed their plan to short term.

40
 Chapter – 4

Conclusion
&
Recommendation

41
 Conclusion

In case of COVID-19, because it’s a global Pandemic, the economic activity stopped around the

world. That psychological affected on the people. The market goes down continually in month of

March, the number of buyers also increase in this period of time. Secondary data shows that March,

April, May – 2020 were highly volatile for the stock market because of COVID19 fear. In this volatile

market major decisions taken by Government of India, Finance Ministry and Large Market

Capitalizations Companies.

The major it impacted on Stock Market. Market was highly volatile in these times.COVID19 has

impacted many sectors of Business area if they either an Individual or Partnerships firm or LLPs or

Companies, etc. There are seven factors that affect the banking & financing sectors due to COVID19

pandemic: Deposits, Interest, Economic Activities, NPA, Liquidity, Defaulters, and Digital

Transformation. Deposits that normally converted loans and investments, for this period of time

Banks can’t generate much of deposits because of lockdown situation. Due to nationwide lockdown

economic activity almost 70% were closed for to prevent Novel Corona Virus Infection. This time the

money in cash as well as in digital form would not be as circulated as earlier. There also various

sectors affected due to this type of situation.

There was huge loss to the Entertainment sector, especially to Cinema industry. Causes of Lockdown,

theatres are closed, shooting of Films and Daily sops are stopped, workers, actors and technicians are

in their home. The Covid-19 outbreak has severely impacted the revenue generation of hospitals

across the country; this is likely to continue till FY21. The out-patient division (OPD) segment of the

companies in India is operating at 20% of the earlier base case expectations, majorly on account of the

lockdown, coupled with the inhibitions of the general public to avoid going to hospitals as a

precautionary measure. Manufacturing in the country won’t take off as soon as lockdown restrictions

are lifted due to an acute shortage of workers who have returned to their home states, industrialists

42
said. The automobile, textile and engineering industries, among others, depend primarily on outstation

employees for working their plants.

The main factors affecting the Aviation industry during the pandemic include the decrease in tours

and travels as a large number of overseas as well as domestic flights are getting cancelled all across

the globe to prevent the transmission of the corona virus. The government also cancelling the visa of

foreign people and locking down affected area which is also one of the major reasons behind the

slowing down of the aviation industry.

The rapidly evolving situation of COVID19, agricultural sectors also affected. The prices of Market

and farms are differing. That affects cause of shortage or slowdown of supply chain for delivering

these items. There are also question of farmer’s health and pressure during this lockdown. Cause of

nationwide lockdown there also slowdown in farmers workforce.

COVID19 impacted also psychology on the people’s money. People’s investing and trading technique

are changed. It changed to large cap funds to small cap funds and companies and blue chip

companies. People will think more on their short term earnings from the market than long term goal.

They will put money after checking companies’ fundamentals data for long term and short term

period.

43
 Questionnaire

Q1) Are you a Male or Female?

 Male

 Female

Q2) What is your age?

 18-30

 30-40

 >40

Q3) How long have you been investing/trading in the Stock Market?

 0-3

 3-5

 5-10

Q4) How do you invest/trade in the Stock Market?

 Personal Money

 Family Money

 Professionally

Q5) Do you invest in volatile market?

44
  Yes

 No

 Sometimes

Q6) Was the stock market highly volatile from March 2020 to December 2020?

 Yes

 No

 Don’t Know

Q7) Have you invested during the period March 2020 to December 2020?

 Yes

 No

Q8) Are your techniques changed for trading/investing after Covid-19?

 Fundamentally

 Technically

 No change

Q9) Have your trading/investing plans changed after the Pandemic?

 Long Term

 Short Term

 No Change

45
 Bibliography
Websites

 www.investopedia.com

 www.bseindia.com

 www.nseindia.com

 www.moneycontrol.com

Newspapers

 The Times of India

 The Economic Times

 Business World

Research Papers

 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 July5, 2009.

 Charles (1999). Economic Policy, Astonishing growth in Americans' stock portfolios. The
46
 Icfai Journal of Stock Market, 6 (3): 43-60. Available at

http://papers.ssrn.com/sol3/results.cfm last accessed on July5, 2009.

 Qiao, H., & Su, Y. (2020). Media Coverage and Decomposition of Stock Market

Volatility:Based on the Generalized Dynamic Factor Model. Emerging Markets Finance &

Trade, 56(3), 613–625.

 P. S., R. K., & Jain, Y. S. (2020). Impact of Corporate Governance on Stock Performance-

Evidence from BSE Sensex. Indian Journal of Industrial Relations, 55(3), 543–558.

 Modi, S. (2017). An Analytical Study on Integration of Financial and Non-Financial

Information and Its Impact on Stock Market Measure. IUP Journal of Accounting

Research & Audit Practices, 16(4), 19–34.

 Adenomon, M. O., &Maijamaa, B. (2020). On the Effects of COVID-19 outbreak on the

Nigerian Stock Exchange performance: Evidence from GARCH Models.

 Money and Capital in Economic Development, Washington: Brookings Institution.

International Journal of Economics and Financial Issues, Vol. 3, No. 3.

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