Abstract

On
Capital market
From share khan securities ltd
(Address:7-1-22/3/1/5-c,Firstfloor,Afziatowers,Begumpet)

This project is all about to know the following; we may put the

objectives of this study as follows.

Analyzing and understanding the Indian capital markets where it

includes introduction of National Stock Exchange (NSE), Bombay

Stock Exchange (BSE) and Securities and Exchange Board of India

(SEBI).

It emphasizes on all the contents of capital market such as Mutual

funds, Equity, IPO, Derivatives. It gives more importance to Equity.

This project gives an idea to the investors about the investing procedures

and benefits of investing in Equity.

To achieve the objectives of study, information and data that has

been collected and carried for the study can be of two types they are

primary and secondary sources.

 INTRODUCTION OF THE STUDY

The analysis of the movement of share prices is known as the equity analysis.

Equity analysis has two main approaches, which are used in analysis of movement

of share prices. FUNDAMENTAL APPROACH and TECHNICAL APPROCH.

The objective of both the approaches is to buy at a lower price and sell at a higher

price, and obtain good return for the investment, but there is a difference between a

material studies and the basis of analysis among these two approaches.

FUNDAMENTAL ANALYST is a person who follows the fundamental approach

and could be concerned with the fundamental factors. He aims at arriving at the

true worth of the share based on current and future earnings capacity of the

company. If the share is quoted below it’s true worth, he would be it and if, he

finds the share price is higher than it’s true worth, he would be booking profits or

will try to move out of the scrip.

TECHNICAL ANALYST is person who follows the technical approach and is

concerned with the direction of movement of shares. He would be buying, if he

sees that the main trend is raising and would be moving out of the scrip as and
when he finds the scrip is reversing direction. His approach is based mainly on

analysis of DEMAND SUPPY equation. If the demand for the scrip is greater than

it’s supplies the prices would be expected to raise, prompt in the analyst to buy. On

the same count, if the supply of a scrip exceeds it’s supplies the prices would be

expected to raise, prompt In the analyst to buy. On the same count, if the supply of

a scrip exceeds it’s demand, the prices are expected to move downwards or drop

and he would exit from the scrip of book profits. Though there are two approaches

to investing in the scrip’s more often the analyst is Familiar with both approaches.

A technical analyst would look at the basic fundamentals before investing and the

fundamentals before investing and the fundamental analyst would bear in mind the

technical position if the market.

NEED OF THE STUDY

 It is to find out that people want to Invests in which type of Instruments.

 To analysis Indian capital markets

 COMPANY PROFILE

SSKI,a veteran equities solutions company with over 8 decades of experience in

the Indian stock markets. The SSKI Group comprises of Institutional Broking and

Corporate Finance. The Institutional broking division caters to domestic and

foreign institutional investors, while the Corporate Finance Division focuses on

niche areas such as infrastructure, telecom and media, SSKI has been voted as the

Top Domestic Brokerage House in the research category, by the Euro Money

survey and Asia Money survey.

Share khan is also about focus. Share khan does not claim expertise in too

many things. Share khan’s expertise lies in stocks and that's what he talks about

with authority. So when he says that investing in stocks should not be confused

with trading in stocks or a portfolio-based strategy is better than betting on a single

horse, it is something that is spoken with years of focused learning and experience

in the stock markets. And these beliefs are reflected in everything Share khan does

for you!
Share khan India's leading stockbroker is the retail arm of SSKI, An organization

with over eighty years of experience in the stock market. With over 240 share

shops in 110 Cities, and India's premier online trading destinations-

Www.sharekhan.com, ours customer enjoy multi-channel access at the stock

markets, share khan offer u trade execution facilities for cash as well as derivatives

on the BSE & NSE and most importantly we bring you investment advice

tempered by eighty years of broking experience Through our portal

Sharekhan.com, we've been providing investors a powerful online trading

platform, the latest news, research and other knowledge-based tools for over 5

years now. We have dedicated terms for fundamental and technical research so

that you get all the information your need to take the right investment decisions.

With branches and outlets across the country, our ground network is one of the

biggest in India. We have a talent pool of experienced professionals specially

designated to guide you when you need assistance, which is why investing with us

is bound to be a hassle-free experience for you! Reason why you should choose

Share Khan
 OBJECTIVES OF THE STUDY

 To study the nature and structure of capital market.

 To know the functioning of SHAREKHAN securities.

 To perform the equity analysis.

 To provide the way of approach for the investor to invest wisely in the

market.

 The purpose of doing this project is mainly to the facts that effects the

company performance.

 To assess the future EPS of the company.

 To examine the internal and external factors affecting the future price of the

company.

 The purpose includes assessing the future market strength of the company.

 The purpose also serves the investors to decide whether to invest in the

company shares to gain good returns.

 SCOPE OF STUDY

 Investor can assess the company financial strength and factors that effect the

company. Scope of the study is limited. We can say that 70% of the analysis

is proved good for the investor, but the 30% depends upon market

sentiment.

 The topic is selected to analyses the factors that effect the future EPS of a

company based on fundamentals of the company.

 The market standing of the company studied in the order to give a better

scope to the Analysis is helpful to the investors, share holders, creditors for

the rating of the company.

RESEARCH METHODOLOGY

 Research Population: People of Hyderabad and Secunderabad.

  Sample Size : 200

 Techniques used to select the sample : Simple Random Sampling

Questionnaire is designed in such a manner that it has minimal ambiguity, and the

respondents can easily analyse it.

MEANS OF DATA COLLECTION: Questionnaire, Telephonic Interview,

Meetings external studies such as articles, newspapers, published journals of

books.

Analyzing Technique : Chi-square technique and simple percentages.

Assumptions:

The assumptions that will be taken into consideration during this study are

 The sample of 200 being chosen is a reflection of all the people in

Hyderabad and Secunderabad.

 The factors effecting the decision of the population are limited to those

mentioned in the Questionnaire.

 LIMITATIONS OF THE STUDY

It is important to appreciate that there are a number of problems and specific

assumptions in this model

(a) Anticipated value for dividends and prices – all of the dividends and

prices used in the model are the investor’s estimates of the future.

(b) Assumption of investor rationality – the model assumes investors act

rationally and make their decisions about share transactions on the basis of

financial evaluation.

(c) Application of discounting - it assumes that the conventional compound

interest approach equates cash flows at different points in time.

(d)Share pries are ex div

(e) Dividends are paid annually with the next dividend payable in one year.

The dividend valuation model

The dividend valuation model is a development of the share valuation model

described above.
The important feature of the dividend valuation model is the recognition of the fact

that shares are in themselves perpetuities. Individual investors may buy or sell

them, but only very exceptionally are they actually redeemed.