Scope Scope of of Study Study

3.6. Scope Scope of of StudyStudy

After conducting the research at Motilal Oswal Securities Limited at sumerpur After conducting the research at Motilal Oswal Securities Limited at sumerpur on equity research , many stages are undertaken as guidance towards appearing at on equity research , many stages are undertaken as guidance towards appearing at conclusion like interaction with staff ,

conclusion like interaction with staff ,questionnaire survey and percentage analysis.questionnaire survey and percentage analysis. As the questionnaire are targeted to get filled by general public who keeps As the questionnaire are targeted to get filled by general public who keeps interest in investment and have an idea about equity .so I

interest in investment and have an idea about equity .so I got the opportunity to knowgot the opportunity to know certain facts about this securities market . Whatever conclusions I have drawn from certain facts about this securities market . Whatever conclusions I have drawn from this research part are mentioned below:

this research part are mentioned below:

Presently in India, securities market is not so much established and popular, Presently in India, securities market is not so much established and popular, there is only a small portion of people who are being an active part of this market as there is only a small portion of people who are being an active part of this market as an investor. Most of the people invest only 20% to 40% of their saving in this market an investor. Most of the people invest only 20% to 40% of their saving in this market and their basic criteria to invest in this market is achieving higher returns. Most of the and their basic criteria to invest in this market is achieving higher returns. Most of the investors want to enjoy higher returns by investing in

investors want to enjoy higher returns by investing in this market.this market.

Most of the investors, who are investing in this securities market, are choosing Most of the investors, who are investing in this securities market, are choosing the securities on the basic of goodwill of the company although they prefer and the securities on the basic of goodwill of the company although they prefer and believe that technical analysis produces good and accurate result but still as these believe that technical analysis produces good and accurate result but still as these technical analysis is not so easy to understand they choose their securities on the technical analysis is not so easy to understand they choose their securities on the basis of the reputation of the company. If we look upon those people who are using basis of the reputation of the company. If we look upon those people who are using technical analysis then we will find that most of the people who choose the securities technical analysis then we will find that most of the people who choose the securities by doing technical analysis are using moving average as the most easy and suitable by doing technical analysis are using moving average as the most easy and suitable tool.

tool.

Riskier long-term saving requires that an individual possess the ability to Riskier long-term saving requires that an individual possess the ability to manage the associated increased risks. Stock prices fluctuate widely, in marked manage the associated increased risks. Stock prices fluctuate widely, in marked contrast to the stability of (government insured) bank deposits or bonds. This is contrast to the stability of (government insured) bank deposits or bonds. This is something that could affect not only the individual investor or household, but also the something that could affect not only the individual investor or household, but also the

The following deals with some of the risks of the financial sector in general The following deals with some of the risks of the financial sector in general and the stock market in particular. This is certainly more important now that so many and the stock market in particular. This is certainly more important now that so many newcomers have entered the stock market, or have acquired other 'risky' newcomers have entered the stock market, or have acquired other 'risky' investments (such as 'investment' property, i.

investments (such as 'investment' property, i.e., real estate and collectables).e., real estate and collectables).

With each passing year, the noise level in the stock market rises. Television With each passing year, the noise level in the stock market rises. Television commentators, financial writers, analysts, and market strategists are all over talking commentators, financial writers, analysts, and market strategists are all over talking each other to get investors' attention. At the same time, individual investors, each other to get investors' attention. At the same time, individual investors, immersed in chat rooms and message boards, are exchanging questionable and immersed in chat rooms and message boards, are exchanging questionable and often misleading tips. Yet, despite all this available information, investors find it often misleading tips. Yet, despite all this available information, investors find it increasingly difficult to profit.

increasingly difficult to profit.

Stock prices skyrocket with little reason, then plummet just as quickly, and Stock prices skyrocket with little reason, then plummet just as quickly, and people who have turned to investing for their children's education and their own people who have turned to investing for their children's education and their own retirement become frightened. Sometimes there appears to be no rhyme or reason retirement become frightened. Sometimes there appears to be no rhyme or reason to the market, only folly.

to the market, only folly.

INDIA

INDIA – – THE LAND OF OPPORTUNITYTHE LAND OF OPPORTUNITY

India is no longer the country of Taj Mahal, elephants & snake charmers only India is no longer the country of Taj Mahal, elephants & snake charmers only

but has become the land of opportunities. The old age tag line of “Bird of Gold” is but has become the land of opportunities. The old age tag line of “Bird of Gold” is

slowly getting prominence and acceptance in this modern competitive environment. slowly getting prominence and acceptance in this modern competitive environment. We as a country have seen it all

We as a country have seen it all – – Ruled by the outsiders, Gaining Independence,Ruled by the outsiders, Gaining Independence, Green Revolution, and Political Coalitions but above all, the growth of our economy Green Revolution, and Political Coalitions but above all, the growth of our economy from US$ 10 billion USD to over US$ 1.2 tri

from US$ 10 billion USD to over US$ 1.2 trillion since independence.llion since independence.

This is just the beginning of the growth that we have embarked upon and will This is just the beginning of the growth that we have embarked upon and will cross many more milestones in the journey towards US$ 2 trillion to 3 to 4 and so on cross many more milestones in the journey towards US$ 2 trillion to 3 to 4 and so on and so forth. What is driving growth in our country, when the world is struggling to and so forth. What is driving growth in our country, when the world is struggling to keep their head above water? What are the businesses that will provide the much keep their head above water? What are the businesses that will provide the much needed impetus to our economy which will make the world sit and notice? What will needed impetus to our economy which will make the world sit and notice? What will

make the world believe that “Ignore India at its own peril”? make the world believe that “Ignore India at its own peril”?

Our GDP contributors have been changing from dominance by Agriculture to Our GDP contributors have been changing from dominance by Agriculture to Services & Manufacturing. 30 years back agriculture used to contribute over 30% to Services & Manufacturing. 30 years back agriculture used to contribute over 30% to our GDP but the same has dropped to under 15% whereas Service sector has our GDP but the same has dropped to under 15% whereas Service sector has increased from over 30% to over 50%.

increased from over 30% to over 50%.

The entrepreneur spirit couple with the service mindset has helped us in The entrepreneur spirit couple with the service mindset has helped us in reaching such high growth in services sector. The manufacturing sector contribution reaching such high growth in services sector. The manufacturing sector contribution has increased from 19% to over 28% during the same period.

has increased from 19% to over 28% during the same period.

Indian opportunity so exciting from an

Indian opportunity so exciting from an investment destinationinvestment destination Expanding per capita:

Expanding per capita: The 1 billion plus population is the most promisingThe 1 billion plus population is the most promising opportunity that any business can

opportunity that any business can look at. The below the poverty line look at. The below the poverty line populationpopulation has fallen from 93% in 1985 to less than 50% currently and is expected to has fallen from 93% in 1985 to less than 50% currently and is expected to come down further to below 25% by 2025.

come down further to below 25% by 2025.

This will bring a large part of deprived population under the consumption This will bring a large part of deprived population under the consumption net. What doubles the excitement is that fact that over 60% of the population is net. What doubles the excitement is that fact that over 60% of the population is below the age of 35. This demographic change will present a huge opportunity below the age of 35. This demographic change will present a huge opportunity for the companies catering to consumption.

for the companies catering to consumption.

Fiscal Discipline:

Fiscal Discipline: The ministry of finance has been working overtime toThe ministry of finance has been working overtime to control and bring down the fiscal deficit. The fiscal discipline will improve the control and bring down the fiscal deficit. The fiscal discipline will improve the quality of finance of the country and will allow the government to make money quality of finance of the country and will allow the government to make money available for growth. The current 3G and BWA auction has just helped the available for growth. The current 3G and BWA auction has just helped the cause.

cause.

Government, the big spender:

Government, the big spender: The biggest challenge for the government isThe biggest challenge for the government is to impart fiscal discipline but at the same time do not compromise on the to impart fiscal discipline but at the same time do not compromise on the growth story across key sectors like Infrastructure. To bridge the gap and growth story across key sectors like Infrastructure. To bridge the gap and execute large projects, government is seeking private participation in projects execute large projects, government is seeking private participation in projects like Airport modernization, Metro railways etc.

We are currently spending 6.50% of GDP on infrastructure and the same is We are currently spending 6.50% of GDP on infrastructure and the same is expected to go up to 9% by 2013. This will give a huge boost to the economy expected to go up to 9% by 2013. This will give a huge boost to the economy and will create large employment opportunities thereby increasing the and will create large employment opportunities thereby increasing the purchasing power of people.

purchasing power of people.

Savings boom:

Savings boom: By nature and culture, we are savers and do not believe inBy nature and culture, we are savers and do not believe in leveraging ourselves as individuals. The Indian savings rate is between 35 to leveraging ourselves as individuals. The Indian savings rate is between 35 to 40% thereby giving a huge opportunity to BFSI sector to be instrumental in 40% thereby giving a huge opportunity to BFSI sector to be instrumental in such large savings. With GDP all set to grow to 2 trillion USD, our savings will such large savings. With GDP all set to grow to 2 trillion USD, our savings will be close to 1 trillion USD.

be close to 1 trillion USD.

There are also some people who are investing in securities market by using There are also some people who are investing in securities market by using market calls and tips as the base to choose the securities, but they are not so much market calls and tips as the base to choose the securities, but they are not so much about the result of these market calls

about the result of these market calls and tips, they didn‟t believe that these calls andand tips, they didn‟t believe that these calls and

tips are so much fruitful but as they are not very much aware regarding the technical tips are so much fruitful but as they are not very much aware regarding the technical tools, they have to use market calls and tips.

tools, they have to use market calls and tips.

It is the believe of investor that technical analysis is not very easy to It is the believe of investor that technical analysis is not very easy to understand, but as the securities market is growing day by day so investors are understand, but as the securities market is growing day by day so investors are trying to understand these technical tools we can say now people are being trying to understand these technical tools we can say now people are being interested to learn about technical analysis. It is a good indication that people are interested to learn about technical analysis. It is a good indication that people are now interested and excited to know about technical analysis of securities and they now interested and excited to know about technical analysis of securities and they want to choose the securities on the basis of technical analysis so all the companies want to choose the securities on the basis of technical analysis so all the companies related to securities market like Bonanza should encourage and motivate their know related to securities market like Bonanza should encourage and motivate their know investors and clients to use of most easy technical tools to them.