INDIAN CAPITAL MARKET
PREFACE In today’s era of cut-throat competition, Masters of Business Administration (MBA) is sure to have an edge over their counterparts. MBA education brings its students in direct contact with the real corporate world through industrial training. The MBA program provides its students with an in depth study of various managerial activities that are performed in any organization. A detailed analysis of managerial activities conducted in various departments like production, marketing, finance, human resources, export-imports, credit dept, etc. gives the student a conceptual idea of what they are expected to manage , how to manage and how to obtain the maximum output through minimum inputs and how to minimize the wastage of resources. I have undergone my summer training at SHAREKHAN LTD. It is one of the leading broking house of the country. I feel great pleasure to present this report work after my training at SHAREKHAN LTD. that produced to be golden opportunity for me INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD.
INDIAN CAPITAL MARKET
by enriching my knowledge by comparing my theoretical knowledge with the managerial skill and application. Simple language has been used throughout the report. Report is illustrated with figures, charts and diagrams, as and when required.
DECLARATION I, Mr. VIVEK N. DATTANI, student of INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, Ahmedabad, affiliated to Sikkim Manipal University hereby declare that this project report is a result of culmination of my sincere efforts. I declare that this submitted work is done solely by me and to the best of my knowledge; any other person for the award of degree or diploma has submitted no such work. It is a record of original work done and training undergone by me under the guidance and supervision of Mr. MALAY POPAT (Branch Manager). I guarantee that this project report has not been submitted for the awards to any other university for degree, diploma or any other such prizes. “Every accomplishment starts with the decision to try” INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD.
INDIAN CAPITAL MARKET
Signature of the Student,
----------------------------(VIVEK DATTANI) Place: - JAMNAGAR Date : 13.07.2009
GUIDE CERTIFICATE
I hereby declare that the research work embodied in this dissertation entitled “A guide to Indian Capital Market” has been undertaken and completed by VIVEK NAVINKUMAR DATTANI under my guidance and supervision.
INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD.
INDIAN CAPITAL MARKET
I also certify that he has fulfilled all the requirements under the covenant governing the submission of dissertation to the SIKKIM MANIPAL UNIVERSITY for the award of MBA Degree.
Place: Ahmedabad Baliyan Date: guide,
----------------------------------Dr. Ramkumar Internal Institute of
Business Mgt. & Research
ACKNOWLEDGEMENT At this stage of my long educational journey, I look back INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD.
INDIAN CAPITAL MARKET
and find that though mine is a fairly sail, it has been memorizing extravagance of memorable experience. At this gratifying moment of completion of my research problem, I feel obliged to record my gratitude to those who have helped me. I feel immense pleasure to thank Dr. R.K.BALIYAN SIR (Dean & Director), Institute of Business Management & Research, Ahmedabad for making available all facilities in fulfilling the requirements for the research work & giving valuable guidance throughout preparation of this report. I convey my deepest gratitude to Mr. MALAY POPAT, (Branch Manager, SHAREKHAN LTD., Rajkot) for guiding me in each and every area of my research work and providing precious knowledge & information required for my project report.
I am sincerely thankful to all the faculty member of MBA department who directly or indirectly supported me during the project.
VIVEK DATTANI INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD.
INDIAN CAPITAL MARKET
Executive Summary
The study of Indian capital market begins with the introduction of the capital market what is capital market & this study shows that the capital market is the backbone of the Indian economy. what is the problem in capital market in past times is revealed in the problem statement , what type of problem in the automobile industry is also described in the problem statement then after how the study is done is described in research methodology. The scenario of Indian capital market, in which how the reform of capital market takes place, is shown in that what are the different player, participants & how the capital market is works is also the part of the study, this is not technically shown. In this part what is the position of capital market of India is shown by describing the Indian economy and comparing the Indian economy with the world. How GDP, working age population & the producing age group all affects the Indian capital market is shown. GDP growth is increased by 9.31%, which is next to China. INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD.
INDIAN CAPITAL MARKET
India’s global growth in Working Age Population is also highest than other country. The amount spent on infrastructure is also increased compared to last three years.
The global scenario is shown by the investment of foreign institutional investor done in Indian capital market. Capital flow from the FDI and FII has also increased as compared to last year. FII has largest shareholder in Housing Development Finance Corporation which is 64.26%. Here, description that what is the position of the listed companies; market capitalization and of Skilled Manpower and 8.9mn Qualified Engineers & turn over ratio in Indian stock market are shown. In global comparison it is also describe that India has 7.2mn available. The study also shows the companies which are listed in ADR & GDR. The efficient
market
hypothesis
shows
the
importance
of
the
information in the stock market and how market over react or under react when any information or news comes to the market. This is explained by explaining various examples. INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD.
INDIAN CAPITAL MARKET
The Indian automobile industry is the study part of this report and in this the Bajaj auto & Mahindra & Mahindra is the scope of the study. But before the study of the companies the auto mobile industry is shown so the investor gets an idea of the growing automobile industry. After studying the automobile industry, the role of the Bajaj auto and the Mahindra & Mahindra is shown.
TABLE OF CONTENTS Sr.
Particulars
No.
Page No.
1.
INTRODUCTION TO CAPITAL MARKET
1
2.
OBJECTIVE OF THE STUDY
7
3.
RESEARCH METHODOLOGY
9
3.
INTRODUCTION TO ORGANIZATION - “SHAREKHAN LTD.” (a) Profile
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12
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4.
5.
(b) Nature
15
(c) Vision
16
(d)Corporate Structure
17
(e) Corporate Office
18
(f) HR Policies & Performance Appraisal
19
(g)Financial Information
20
(h) Organizational Structure
21
(i) Product Profile
22
(j) Market Profile
30
(k) SWOT Analysis
34
INDIAN CAPITAL MARKET (a) Background
37
(b)Scenario in context with Indian Economy
42
(c) Scenario in context with Global Economy
48
(d)Efficient Market Hypothesis
61
RESEARCH ANALYSIS – AUTOMOBILE INDUSTRY
72
(a) Bajaj Auto
79
(b)Mahindra & Mahindra
85
6.
CONCLUSION
95
7.
FINDINGS
97
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INDIAN CAPITAL MARKET
8.
LIMITATIONS
9.
SUGGESTIONS
101
10.
GLOSSARY
107
11.
BIBLOGRAPHY
110
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