A STUDY ON

“INVESTOR BEHAVIOR TOWARDS STOCK MARKET IN STATE BANK OF

INDIA”

A research project submitted in partial fulfillment of the requirement for the award of the

degree of Masters of Business Administration (MBA) under the department of Management

studies at Guru Nanak Institution‘s

Submitted by:

By

MD.NEHA

HALL TICKET NO: 22WJ1E0069

Under The Supervision Of

MR .I .Kamalakar Rao

(Assistant Professor)

Department of masters of business administration

GNITC, Hyderabad : Telengana

1
 DECLARATION

I hereby, declare that the work presented in this project titled “INVESTOR BEHAVIOR

TOWARDS STOCK MARKET IN STATE BANK OF INDIA " is carried out by me

under the supervision of MR .I .Kamalakar Rao, Asst. Professor of the department of

management studies. I have acknowledged references from all sources including the internet

sources wherever applicable.

Name: MD.NEHA Date:

Roll no: 22WJ1E0069

Place: Ibrahimpatnam, R.R District, Telengana.

2
 CERTIFICATE

This is to certify that the project entitled “INVESTOR BEHAVIOR TOWARDS STOCK

MARKET IN STATE BANK OF INDIA ” submitted by MD.NEHA in partial fulfillment

of the requirement for the award of the degree Masters of Business Administration

candidate‘s own work carried out by her under my supervision. This project or any part

thereof has not been submitted to any other institution for any degree or diploma.

Supervisor: Date:

Signature:

Head of Department:

Signature:

3
 ACKNOWLEDGEMENT

The result is always the sum of all parts. Likewise, this report put forth was possible with the

help of many people involved in the completion of this INTERNSHIP project.

It is a great for me to record her deep sense to SNEHA REDDY (Assistant Manager) who

accorded permission to do project work at (SBI) and guiding in doing my project work

I extent my gratitude to Dr. ANAND BETHAPUDI (HOD), Department of Master of

Business Administration, GURU NANAK INSTITUTE OF TECHNOLOGY for

accommodating me in the family of Gurunanak.

My must sincere thanks to my guide, MR .I .Kamalakar Rao (Assistant Professor), GURU

NANAK INSTITUTE OF TECHNOLOGY, for motivating me to give my best for my project

without which this project report would not be called a success.

MD.NEHA

Management of studies

4
 ABSTRACT

The Indian stock market is the oldest stock market in Asia. The individual investor plays an
important role in the stock market because of the big share of their savings are invested in
the country. The investors‘ decision is always based on risk and return relationship. An
individual invests in the stock market at high risk because he/she tends to look at the higher
possible return from the investment. The behavioural finance considers attempt to
understand how emotions and cognitive errors influence individual investors‘ behaviour.
The study attempts to understand the behaviour of individual investors in Indian stock
market, specifically their attitude and perception with respect to the stock market. The
objective is also to identify the preferred source of information influencing investment
decision and to access the psychology of investors in different market situations.

5
 CONTENTS
CHAPTERS PARTICULARS PAGE
NO’S

CHAPTER-I INTRODUCTION

1.1 NEED FOR THESTUDY

1.2 OBJECTIVES OF THESTUDY

1.3 SCOPEOF THE STUDY

1.4 RESEARCH METHODOLOGY

1.5 LIMITATIONS OF THESTUDY

CHAPTER-II REVIEW OF LITERATURE

CHAPTER-III COMPANY PROFILE

CHAPTER-IV DATA ANALYSIS AND INTERPRETATIONS

FINDINGSCO
NCLUSIONS
CHAPTER-V
SUGGESTION
S

BIBLIOGRAPH
Y

6
 CHAPTER-I
INTRODUCTION

7
1.1Introduction

Investor behavior towards stock market is one of the oldest in Asia. Its history dates back
to nearly 200 years ago. The earliest records of security dealings in India are meager and
obscure. The East India Company was the dominant institution in those days and
business in its loan securities used to be transacted towards the close of the eighteenth
century.

By 1830's business on corporate stocks and shares in Bank and Cotton presses took place
in Bombay. Though the trading list was broader in 1839, there were only half a dozen
brokers recognized by banks and merchants during 1840 and 1850. The 1850's witnessed a
rapid development of commercial enterprise and brokerage business attracted many men
into the field and by 1860 the number of brokers increased into 60. In 1860-61 the
American Civil War broke out and cotton supply from Unit

ed States to Europe was stopped; thus, the 'Share Mania' in India began. The number of
brokers increased to about 200 to 250.

At the end of the American Civil War, the brokers who thrived out of Civil War in 1874,
found a place in a street (now appropriately called as Dalal Street) where they would
conveniently assemble and transact business. In 1887, they formally established in
Bombay, the "Native Share and Stock Brokers' Association”, which is alternatively
known as “The Stock Exchange". In 1895, the Stock Exchange acquired a premise in the
same street and it was inaugurated in 1899. Thus, the Stock Exchange at Bombay was
consolidated.The Indian stock market has been assigned an important place in financing
the Indian corporate sector. The principal functions of the stock markets are:

• enabling mobilizing resources for investment directly from the investors

• providing liquidity for the investors and monitoring.

• Disciplining company management.

8
• STOCK EXCHANGE IN INDIA

The two major stock exchanges in India are:-

1. National Stock Exchange (NSE)

2. Bombay Stock Exchange (BSE).

1. National Stock Exchange

With the liberalization of the Indian economy, it was found inevitable to lift the Indian stock

market trading system on par with the international standards. On the basis of the

recommendations of high powered Pherwani Committee.

The National Stock Exchange was incorporated in 1992 by Industrial Development Bank of

India, Industrial Credit and Investment Corporation of India, Industrial Finance Corporation

of India, all Insurance Corporations, selected commercial banks and others.

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. It has set up facilities that serve as a model for the securities industry in terms of

systems, practices and procedures.

9
 Trading at NSE can be classified under two broad categories:

• Wholesale debt market

• Capital market

Wholesale debt market operations are similar to money market operations - institutions

and corporate bodies enter into high value transactions in financial instruments such as

government securities, treasury bills, public sector unit bonds, commercial paper,

certificate of deposit, etc.

Capital market: A market where debt or equitysecurities are traded.

1.2 NEED OF THE STUDY

The need of the study was to fill the gap that was identified in the previous researches.

The researchers conducted earlier lay emphasis on the working of Indian Stock Market.

Considering the ample importance of this aspect, the present study was conducted to know

the Indian Stock Market & various options available in the Stock Market to invest & study

the behavior of investors and determine their awareness level regarding various investment

avenues available in stock market.

10
 1.3 : SCOPE OF THE STUDY

The scope of the study was limited to Hyderabad city. To the etent up to the stock market in

Indian economy by taking one registered company. For the purpose of this project, I am

taking Co."STATE BANK OF INDIA"

11
 1.4 : OBJECTIVES OF THE STUDY

The study has been undertaken in order to achieve the following objectives:

• To take an overview of the Indian Stock Market and encapsulate the various investment

avenues available.

• To know various options available in the Capital Market to invest.

• To know investor‘s perception regarding investment in stock market

• To study the investment behavior of investors and the factors that affects their investment

decision.

• To study the problems of investors and the reasons for not investing in financial

instruments.

• To know the satisfaction level of investors regarding return of different investment

avenues.

12
1.5 : RESEARCH METHODOLOGY & RESEARCH DESIGN
Research Methodology is a way to systematically solve the research problem. The Research

Methodology includes the various methods and techniques for conducting a research.

Research is an art of scientific investigation. In other word research is a scientific and

systematic search for pertinent information on a specific topic. The logic behind taking

research methodology into consideration is that one can have knowledge about the method

and procedure adopted for achievement of objective of the project.

The present project consists both primary and secondary resources.

• RESEARCH DESIGN:

Research design is the conceptual structure within which research is conducted. It

constitutes the blueprint for collection, measurement and analysis of data was a

descriptive research. Descriptive research involves collecting numerical through self-

reports collected, through questionnaires or interviews (person or phone), or through

observation. For present study, the research was descriptive and conclusion oriented.

13
• SAMPLING DESIGN:

• 1. Universe: The Universe is most commonly defined as everything that physically

exists: the entirety of space and time, all forms of matter, energy and momentum, and

the physical laws and constants that govern them. All those persons who make

investment.

a. Theoretical Universe: It included investors make investment in all over world.

b. Accessible Universe: It included investors make investment in Indian Stock

Market.

• 2. Sampling unit – The target population must be defined that has to be sampled. The

sampling unit of research included students and professionals residing in Hyderabad

city.

• 3. Sample size – This refers to number of respondents to be selected from the universe

to constitute a sample. The sample size of 50 Investors was taken.

• 4. Sampling Technique – Convenience Sampling was used to select the sample.

Convenient sampling is a non probability sampling technique that attempts to obtain a

sample of convenient elements .In case of convenience sampling, the selection of sample

depends upon the discretion of the interviewer. In this project, Questionnaire Method was

used for the collecting the data. With the help of this method of collecting data, a sample

survey was conducted.

Data Collection : Information has been collected from both Primary and Secondary Data.

14
 • Secondary sources- Secondary data are those which have already been collected by
someone else and which already had been passed through the statistical process. The
secondary data was collected through web sites, books and magazines.
• Primary sources- Primary data are those which are fresh and are collected for the
first time, and thus happen to be original in character. The primary data was
collected through direct personal interviews (open ended and close ended
questionnaires
• Tools of Presentation & Analysis:
To analyze the data obtained with the help of questionnaire, following tools were
used
• Likert scale: These consist of a number of statements which express either a
favourable or unfavourable attitude towards the given object to which the respondents
are asked to react. The respondent responds to in terms of several degrees of
satisfaction or dissatisfaction.
• Percentage, Bar Graphs and Pie Charts: These tools were used for analysisof data.
 Some other tools used as technical analysis are as follows :
1. on balance volume (obv)
2. accumulation distribtion line
3. average directional index
4. aaron indicator
5. moving average convergent divergence (MACD)
6. relative strength index
7. stothastic oscillator

15
LIMITATIONS OF STUDY

It is said, ―What is worth doing is worth doing best‖. In other words a person should

aim at perfection. However in real life this is not always possible. Human have to

work within the limitation set by the nature and society. That is to say even though

every possible effort has been made to make this project report authentic and

comprehensive however many constraints were also at play. The major limitations of

the study are:-

• Due to paucity of time and resources a countrywide survey was not possible. Hence

only Chandigarh city has been taken for the study.

• Since a smaller sample was chosen so it may not be a true representative of the

population under study.

• The possibility of the respondent‘s responses being biased cannot be ruled out.

• Most of the study was restricted to Internet and published data because of the non

availability of primary data.

• The information given by the respondents might be biased because some of them

might not be interested to given correct information..

• Some of the respondents could not answer the questions due to lack of knowledge.

• Some of the respondents of the survey were unwilling to share information.

16
 CHAPTER-II

REVIEW OF LITERATURE

17
REVIEW OF LITERATURE

Various studies on Investment pattern & Investment behavior of investors had been

conducted in foreign countries. However, in Indian context, the number is quite few.

Depending on the various issues of investment, the review has been discussed in brief as

follows:

ARTICLE 1

TITLE : Astonishing growth in American portfolios

AUTHOR : Charles

JOURNAL : Charles (1999). economic policy , astonishing growth in american's stock

portfolios. The icfai journal of stock market,6 (3): 43:60

ABSTRACT :

Charleshas analysed 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.

18
ARTICLE 2 :
TITLE : Literature on globalisation
AUTHOR : Bharadwaj
JOURNAL : Bhardwaj(2003), Liberalisation on globalisation. The Icfai of stock
market,6(5)
ABSTRACT :
Bharadwaj has stated the literature on globalization, He found the pervasiveness of the west‘s
perception of the world affect 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.

ARTICLE 3 :
TITLE : Investor behaviour on marketing world and financial economics.
AUTHOR : Ranganathan
JOURNAL : Ranganathan(2003),Indian times, investor behaviour in economy.
ABSTRACT:
Ranganathan has stated that 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 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.

19
ARTICLE 4

TITLE : The sizze affecting equity returns

AUTHOR : dijik

JOURNAL : Economic policy, The size effect in equity rturns ,Empirical research findings,

journal of financial management and analysis,21(1)

ABSTRACT :

Dijik 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 number of avenues

for further research.

20
ARTICLE 5

TITLE : Development in capital markets and corporate governance in India.

AUTHOR : P.M.Vasudev

JOURNAL : Corpoate governance Law review, Vol,3.No.,pp.255-,2007

ABSTRACT:

vasudevanalysed 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.

21
ARTICLE 6

TITLE : Stock market returns to oublic quality reviews

AUTHOR : Johnson

JOURNAL : The value of Quality : Stock Market Returns to Published Quality

Reviews.TheIcfai of Applied Economics,7(3):7-22.

ABSTRACT :

Johnson 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 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.

22
 CHAPTER-III

COMPANY PROFILE

23
State Bank of India (SBI) is an Indian multinational public sector bank and financial

services statutory body headquartered in Mumbai, Maharashtra. SBI is the 43rd largest bank

in the world and ranked 221st in the Fortune Global 500 list of the world's biggest

corporations of 2020, being the only Indian bank on the list.[6] It is a public sector bank and

the largest bank in India with a 23% market share by assets and a 25% share of the total loan

and deposits market.[7] It is also the fifth largest employer in India with nearly 250,000

employees.[8][9][10]

The bank descends from the Bank of Calcutta, founded in 1806 via the Imperial Bank of

India, making it the oldest commercial bank in the Indian Subcontinent. The Bank of

Madras merged into the other two presidency banks in British India, the Bank of Calcutta and

the Bank of Bombay, to form the Imperial Bank of India, which in turn became the State

Bank of India in 1955.[11] Overall the bank has been formed from the merger and acquisition

of nearly twenty banks over the course of its 200 year history.[12][13] The Government of

India took control of the Imperial Bank of India in 1955, with Reserve Bank of India (India's

central bank) taking a 60% stake, renaming it State Bank of India.

24
History

Stamp dedicated to the State Bank of India in 2005

Share of the Bank of Bengal, issued 13 May 1876

Seal of Imperial Bank of India

The roots of State Bank of India lie in the first decade of the 19th century when the Bank of

Calcutta later renamed the Bank of Bengal, was established on 2 June 1806. The Bank of

Bengal was one of three Presidency banks, the other two being the Bank of

Bombay (incorporated on 15 April 1840) and the Bank of Madras (incorporated on 1 July

1843). All three Presidency banks were incorporated as joint stock companies and were the

25
result of royal charters. These three banks received the exclusive right to issue paper currency

till 1861 when, with the Paper Currency Act, the right was taken over by the Government of

India. The Presidency banks amalgamated on 27 January 1921, and the re-organised banking

entity took as its name Imperial Bank of India. The Imperial Bank of India remained a joint-

stock company but without Government participation.

Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank of India,

which is India's central bank, acquired a controlling interest in the Imperial Bank of India. On

1 July 1955, the Imperial Bank of India became the State Bank of India. In 2008,

the Government of India acquired the Reserve Bank of India's stake in SBI so as to remove

any conflict of interest because the RBI is the country's banking regulatory authority.

In 1959, the government passed the State Bank of India (Subsidiary Banks) Act. This made

eight banks that had belonged to princely states into subsidiaries of SBI. This was at the time

of the First Five Year Plan, which prioritised the development of rural India. The government

integrated these banks into the State Bank of India system to expand its rural outreach. In

1963 SBI merged State Bank of Jaipur (est. 1943) and State Bank of Bikaner (est.1944).

SBI has acquired local banks in rescues. The first was the Bank of Bihar (est. 1911), which

SBI acquired in 1969, together with its 28 branches. The next year SBI acquired National

Bank of Lahore (est. 1942), which had 24 branches. Five years later, in 1975, SBI acquired

Krishnaram Baldeo Bank, which had been established in 1916 in Gwalior State, under the

patronage of Maharaja Madho Rao Scindia. The bank had been the Dukan Pichadi, a small

moneylender, owned by the Maharaja. The new bank's first manager was Jall N. Broacha, a

Parsi. In 1985, SBI acquired the Bank of Cochin in Kerala, which had 120 branches. SBI was

26
the acquirer as its affiliate, the State Bank of Travancore, already had an extensive network in

Kerala.

State Bank of India logo was designed by NID in 1971

National Institute of Design, Ahmedabad designed the SBI logo in 1971.[14]

There was, even before it actually happened, a proposal to merge all the associate banks into

SBI to create a single very large bank and streamline operations.[15]

The first step towards unification occurred on 13 August 2008 when State Bank of

Saurashtra merged with SBI, reducing the number of associate state banks from seven to six.

On 19 June 2009, the SBI board approved the absorption of State Bank of Indore, in which

SBI held 98.3%. (Individuals who held the shares prior to its takeover by the government

held the balance of 1.7%.)[16]

The acquisition of State Bank of Indore added 470 branches to SBI's existing network of

branches. Also, following the acquisition, SBI's total assets approached ₹10 trillion. The total

assets of SBI and the State Bank of Indore were ₹9,981,190 million as of March 2009. The

process of merging of State Bank of Indore was completed by April 2010, and the SBIndore

branches started functioning as SBI branches on 26 August 2010.[17]

27
On 7 October 2013, Arundhati Bhattacharya became the first woman to be appointed

Chairperson of the bank.[18] Mrs. Bhattacharya received an extension of two years of service

to merge into SBI the five remaining associate banks.

Subsidiaries

SBI provides a range of banking products through its network of branches in India and

overseas, including products aimed at non-resident Indians (NRIs). SBI has 16 regional hubs

and 57 zonal offices that are located at important cities throughout India.

Domestic

Samriddhi Bhavan, Kolkata

SBI has over 24000 branches in India.[19] In the financial year 2012–13, its revenue

was ₹2.005 trillion (US$26 billion), out of which domestic operations contributed to 95.35%

of revenue. Similarly, domestic operations contributed to 88.37% of total profits for the same

financial year.

Under the Pradhan Mantri Jan Dhan Yojana of financial inclusion launched by Government

in August 2014, SBI held 11,300 camps and opened over 3 million accounts by September,

which included 2.1 million accounts in rural areas and 1.57 million accounts in urban areas.

International

28
As of 2014–15, the bank had 191 overseas offices spread over 36 countries having the largest

presence in foreign markets among Indian banks.

 SBI Australia

 SBI Bangladesh

 SBI Bahrain

 SBI Botswana

The SBI Botswana subsidiary was registered on the 27th January 2006 and was issued a

banking licence by the Bank of Botswana on the 29th July 2013. The subsidiary handed over

its banking licence and closed its operations in the country.[25]

 SBI Canada Bank[26] was incorporated in 1982 as a subsidiary of the State Bank of

India. SBI Canada Bank is a Schedule II Canadian Bank listed under the Bank Act and is

a member of Canada Deposit Insurance Corporation.

 SBI China

 SBI (Mauritius) Ltd SBI established an offshore bank in 1989, State Bank of India

International (Mauritius) Ltd. This then amalgamated with The Indian Ocean

International Bank (which had been doing retail banking in Mauritius since 1979) to form

SBI (Mauritius) Ltd. Today, SBI (Mauritius) Ltd has 14 branches – 13 retail branches and

1 global business branch at Ebene in Mauritius.

 Nepal SBI Bank Limited

Main article: Nepal SBI Bank Limited

29
In Nepal, SBI owns 55% of share. (The state-owned Employees Provident Fund of Nepal

owns 15% and the general public owns the remaining 30%.) Nepal SBI Bank Limited has

branches throughout the country.

 SBI Sri Lanka[29] now has three branches located in Colombo, Kandy and Jaffna. The

Jaffna branch was opened on 9 September 2013. SBI Sri Lanka is the oldest bank in Sri

Lanka; it was founded in 1864.

In Nigeria, SBI operates as INMB Bank. This bank began in 1981 as the Indo–Nigerian

Merchant Bank and received permission in 2002 to commence retail banking. It now has five

branches in Nigeria.

In Moscow, SBI owns 60% of Commercial Bank of India, with Canara Bank owning the rest.

In Indonesia, it owns 76% of PT Bank Indo Monex. State Bank of India already has a branch

in Shanghai and plans to open one in Tianjin.

In Kenya, State Bank of India owns 76% of Giro Commercial Bank, which it acquired

for US$8 million in October 2005.

SBI South Korea In January 2016, SBI opened its first branch in Seoul, South Korea.

SBI South Africa

SBI UK Ltd

30
State Bank of India branch at Southall, United Kingdom

SBI USA In 1982, the bank established a subsidiary, State Bank of India, which now has ten

branches—nine branches in the state of California and one in Washington, D.C. The 10th

branch was opened in Fremont, California on 28 March 2011. The other eight branches in

California are located in Los Angeles, Artesia, San Jose, Canoga Park, Fresno, San Diego,

Tustin and Bakersfield.

Former Associate Banks

Main Branch of SBI in Mumbai

SBI acquired the control of seven banks in 1960. They were the seven regional banks of

former Indian princely states. They were renamed, prefixing them with 'State Bank of'. These

seven banks were State Bank of Bikaner and Jaipur (SBBJ), State Bank of

Hyderabad (SBH), State Bank of Indore (SBN), State Bank of Mysore (SBM), State Bank of

31
Patiala (SBP), State Bank of Saurashtra (SBS) and State Bank of Travancore (SBT). All these

banks were given the same logo as the parent bank, SBI. State Bank of India and all its

associate banks used the same blue Keyhole logo said to have been inspired

by Ahmedabad's Kankaria Lake.[33] The State Bank of India wordmark usually had one

standard typeface, but also utilised other typefaces. The wordmark now has the keyhole logo

followed by "SBI".

The plans for making SBI a single very large bank by merging the associate banks started in

2008, and in September the same year, SBS merged with SBI. The very next year, State Bank

of Indore (SBN) also merged.

Following a merger process,[34][35] the merger of the 5 remaining associate banks, (viz. State

Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of

Patiala, State Bank of Travancore); and the Bharatiya Mahila Bank) with the SBI was given

an in-principle approval by the Union Cabinet on 15 June 2016.[36] This came a month after

the SBI board had, on 17 May 2016, cleared a proposal to merge its five associate banks and

Bharatiya Mahila Bank with itself.

On 15 February 2017, the Union Cabinet approved the merger of five associate banks with

SBI.[38] An analyst foresaw an initial negative impact as a result of different pension liability

provisions and accounting policies for bad loans.[39][40] The merger went into effect from 1

April 2017.

32
State Bank of India Mumbai LHO

Non-banking subsidiaries

Apart from five of its associate banks (merged with SBI since 1 April 2017), SBI's non-

banking subsidiaries include:

 SBI Capital Markets Ltd

 SBI Cards & Payments Services Pvt. Ltd. (SBICPSL)

 SBI Life Insurance Company Limited

 SBI Mutual Fund

In March 2001, SBI (with 74% of the total capital), joined with BNP Paribas (with 26% of

the remaining capital), to form a joint venture life insurance company named SBI Life

Insurance company Ltd.

Other SBI service points

As of 31 March 2017, the SBI group had 59,291 ATMs.[42] Since November 2017, SBI also

offers an integrated digital banking platform named YONO.

Yes Bank Investment

33
State Bank of India acquired 48.2% of the shares of Yes Bank as part of RBI directed rescue

deal in March 2020.

Listings and shareholding

As on 31 March 2017, Government of India held around 61.23% equity shares in SBI.

The Life Insurance Corporation of India, itself state-owned, is the largest non-promoter

shareholder in the company with 8.82% shareholding.

Shareholders Shareholding

Promoters: Government of India 56.92%

FIIs/GDRs/OCBs/NRIs 10.94%

Banks & Insurance Companies 10.63%

Mutual Funds & UTI 13.72%

Others 07.79%

Total 100.0%

34
The equity shares of SBI are listed on the Bombay Stock Exchange,[44] where it is a

constituent of the BSE SENSEX index,[45] and the National Stock Exchange of

India,[46] where it is a constituent of the CNX Nifty.[47] Its Global Depository

Receipts (GDRs) are listed on the London Stock Exchange.

Employees

State Bank Institute of Credit and Risk Management, Gurugram

SBI is one of the largest employers in the world with 245,652 employees as on 31 March

2021. Out of the total workforce, the representation of women employees is nearly 26%. The

percentage of Officers, Associates and Subordinate staffs was 44.28%, 41.03% and 14.69%

respectively on the same date. Each employee contributed a net profit

of ₹828,350 (US$11,000) during FY 2020–21.

35
 CHAPTER-IV
DATA ANALYSIS

36
 Data Collection : Information has been collected from both Primary and Secondary Data.

• Primary sources- Primary data are those which are fresh and are collected for the
first time, and thus happen to be original in character. The primary data was
collected through direct personal interviews (open ended and close ended
questionnaires
• Secondary sources- Secondary data are those which have already been collected by
someone else and which already had been passed through the statistical process. The
secondary data was collected through web sites, books and magazines.
• Tools of Presentation & Analysis:
To analyze the data obtained with the help of questionnaire, following tools were
used
Likert scale: These consist of a number of statements which express either a favourable or
unfavourable attitude towards the given object to which the respondents are asked to react.
The respondent responds to in terms of several degrees of satisfaction or dissatisfaction.
Percentage, Bar Graphs and Pie Charts: These tools were used for analysisof
data. Some other tools used as technical analysis are as follows :

1. on balance volume (obv)

2. accumulation distribtion line

3. average directional index

4. aaron indicator

5. moving average convergent divergence (MACD)

6. relative strength index

7. stothastic oscillator

37
DATA ANALYSIS AND INTERPREATATION

• 4.0 : Demographic Profile of investors

Table 4.0 : Demographic Profile of investors
Demographics No. of respondents Percentage of
respondents
Age
Less than 20 years 0 0
20-40 20 40
Greater than 40 30 60
Total 50 Total 50
Qualification
Matric 0 0
Under Graduate 25 50
Post Graduate 25 50

Total 50 Total 100

Occupation
Service 19 38
Profession 6 12
Business 15 30
Student 10 20

Total 50 Total 100

Income (per month)
Less than Rs.20000
Rs.20000-40000 10 20
Greater than 40000 25 50
15 30
Total 100 Total 100

38
Analysis & Interpretation: It was found that the major population of investors was greater
than 40yrs and 60% was of 20-40 yrs. And 50% respondents were under graduate and 50%
were post graduate. 35% of respondents were doing service. And majority of respondents i.e.
50% earn income between Rs.20000-40000 per month. It means majority of investors was
greater than 40 years having income in between Rs 20000-40000.

39
Statement 1. To know whether respondents invest.

Table No. 4.1: To know whether respondents invest.

Investment Decision No. of Respondents Percentage of Respondents
Yes 45 90
No 5 10
Total 50 100

Figure No. 4.1: To know whether respondents invest.

Analysis & Interpretation:

From the survey it was found that 90% respondents invest in the stock market and 10% who
were non-investors.

40
Statement 2. Awareness regarding types of Investment Instruments
Table No. 4.2: Type of investment option the person is aware of
Types of Investment No. of Respondents Percentage of Respondents
Instruments
Shares 15 30%
Mutual Funds 23 46%
Debentures 5 10%
Bonds 5 10%
Derivatives 2 4%
Total 50 100%

Figure No. 4.2: Type of investment option the person is aware of

Analysis & Interpretation Above pie-chart shows that 45% investors were aware of the
mutual fund, 25% investors were aware of shares, 15% investors were aware of debentures,
10% investors were bonds. It means majority of persons aware about mutual fund whereas
shares and debentures were of second importance.

41
Statement 3 .To know the type of investment option the person has been investing
Table No. 4.3: Type of investment option the person has been investing

Investment alternative No. of Respondents Percentage of Respondents

Shares 15 30%
Mutual Funds 15 30%
Debentures 10 20%
Bonds 5 10%
Derivatives 5 10%
Total 50 100%

Figure No. 4.3: Type of investment option the person has been investing

Analysis & Interpretation:

From the survey it was found that 30% respondents invest in Mutual funds, 25% invest in
Shares and 20% invest in Debentures. Thus, it can be stated that maximum people invest in
Mutual Funds whereas shares are having 2nd importance.

42
Statement 4. To know the rates at which the investment grow
Table No. 4.4 : The rates at which the investment grow

Investment Growth Rate No. of Respondents Percentage of Respondents

Steadily 0 0%
At an average rate 5 10%
At fast rate 45 90%
Total 50 100%

Figure no 4.4 : The rates at which the investment grow

Analysis & Interpretation:

From the survey it was found that 90% respondents wants their investment grow at fast rate
whereas only 10% respondents were in the favour of investment growth at average rate.

43
Statement 5. To know the frequency of investment by the Respondents.
Table No. 4.5: Frequency of investment
Frequency of Investment No. of Respondents Percentage of Respondents
Daily 0 0%
Weekly 10 20%
Monthly 24 48%
Yearly 18 32%
Total 50 100%

Figure No. 4.5: Frequency of Investment

Analysis & Interpretation:

From the above table & chart it was found that 45 respondents invest monthly, 35 invest
yearly and there were 20 respondents who invest daily. Thus, it can be stated that majority of
the investors invest monthly in stock market.

44
Statement 6 .To know the percentage of income that respondent invest annually
Table No. 4.6: the percentage of income that respondent invest annually
Annual Income No. of Respondents Percentage of Respondents
Invested
Up to 10% 7 14%
10-15% 11 22%
15-20% 20 40%
More than 20% 12 24%
Total 50 100%

Figure No. 4.6: The percentage of income that respondent invest annually

Analysis & Interpretation:

From the above table & chart, it was found that 40 respondents invest 15-20% of their annual
income, 24 respondents invest more than 20% of their annual income, 22 respondents invest
up to 10-15% of their income and 14 respondents invest up to 10% of their income in
different investment avenues. Thus, it can be concluded that majority of investors invest 10%
to 20% of their monthly income.

45
Statement 7. To know the respondent’s influence on Investment decision.
Table No.4.7: The respondent’s influence on Investment decision

Sources No. of Respondents Percentage of Respondents

Self 24 48%
Friends & Relatives 10 20%
Service providers & 6 12%
consultants
Newspapers & Advertisement 5 10%
Agents 3 6%
Workshops & Seminars 2 4%
Total 50 100%

Figure No. 4.7: The respondent’s influence on Investment decision

Analysis & Interpretation:

From the above table & chart, it was found that multiple aspects for investing influenced
respondents.48% respondents take investment decision on the basis of their personal
evaluation where as 20% respondents invest because of influence of friends & relatives, the
consultantsinfluences 12% respondent and the advertisement influences 10% respondents. It
can be stated that majority of the persons are influenced by their own while opting for
investment tool.

46
Statement 8. To Know The Factors That Were Considered While Investing.
Table No. 4.8: The Factors That Were Considered While Investing

Investment Factors No. of Respondents Percentage of Respondents

Return on investment 15 30%
Tax benefits 9 18%
Capital appreciation 7 15%
Maturity period 3 6%
Risk 6 12%
Safety of principal 3 6%
Liquidity 7 14%
Total 50 100%

Figure No. 4.8: The Factors That Were Considered While Investing

Analysis & Interpretation:

From the survey it was found that the maximum respondents considered return on investment
was most important factor, 18% respondents considered tax benefits as an important factor
and 14% respondents considered capital appreciation as an important factor. It can be stated
that majority of investors were consider return as an important factor while investing.

47
Statement 9. To Know Investor’s Action In Case Of Stock Market drop.
Table No. 4.9: The Investor’s Action In Case Of Stock Market drop
Investor’s preference in case No. of Respondents Percentage of Respondents
of losses
Transfer funds into secure 15 25%
investment
Wait to see if investment 20 40%
improves
Invest more funds 13 30%
Withdraw funds & stop 2 5%
investing
Total 50 100%

Figure No. 4.9: The Investor’s Action In Case Of Stock Market Drop

Analysis & Interpretation:

From the survey it was found that maximum respondents would wait to see if their
investment improves and start generating funds, 30% respondents would invest more funds,
25% respondents would transfer funds into secure investment and 5% respondents would stop
investing. It can be stated that majority of investors would like to wait to see whether
investment improves or they can invest more funds.

48
Statement 10. To Know The Decision Regarding Other Investment Policy
Table no. 4.10: The Other Investment Policy

Investment Decision No. of Respondents Percentage of Respondents

Yes 49 98%
No 1 2%
Total 50 100%

Figure 4.10The Other Investment Policy

Analysis & Interpretation:

From the survey it was found that 98% respondents have the other investment policy where
as 2% respondents do not have the other investment policy.

49
Statement 11. To Know the Satisfaction Level Of Respondents With Their Investment
Option
Table no. 4.11: Important Factors for Choosing The Investment Option
Particulars Highly Dissatisfied Neutral Satisfied Highly Summated
Dissatisfied Satisfied Score
(1) (2) (3) (4) (5)
Shares 10 6 14 30 40 384
Mutual funds 12 15 20 35 18 332
Bonds 20 18 35 19 8 277
Debentures 15 10 15 40 20 340
Derivatives 30 10 20 30 10 280

Range
Max. Score=100*5=500 (Highly Satisfied)
Avg. Score=100*3=300 (Neutral)
Min. Score=100*1=100 (Highly Dissatisfied)

Analysis & Interpretation:

Most of the respondents have given the highest summated score to shares. And the second
most important investment option is debentures which influenced the decision regarding
investment. Other important factor is mutual fund coverage which has the 332 summated
score. Return on derivatives get the 280 summated score.

50
Statement 12. Important Factors That Was Considered While Investing

Table No. 4.12 Important Factors That Was Considered While Investing
Particulars Highly Dissatisfied Neutral Satisfied Highly SummatedScore
Dissatisfied Satisfied
(1) (2) (3) (4) (5)
Return on 0 0 4 30 66 462
investment
Tax benefits 0 0 18 48 34 418
Capital 0 0 20 40 40 420
appreciation
Maturity 5 5 40 30 20 355
period
Risk 5 10 20 35 30 375
Safety of 10 20 40 20 10 300
principal
Liquidity 15 15 20 30 20 325

Range:
Max. Score=100*5=500 (Highly Satisfied)
Avg. Score=100*3=300 (Neutral)
Min. Score=100*1=100 (Highly Dissatisfied)
Analysis & Interpretation:
Most of the respondents have given the highest summated score to Return on investment.
And the second most important factor is Capital appreciation which influenced the decision
regarding investment. Other important factor is Tax benefit which has the 418 summated
score.

51
 CHAPTER-V
FINDINGS,LIMITATIONS,
SUGGESTIONS AND CONCLUSIONS OF THE STUDY

52
5.1 : FINDINGS OF THE STUDY

A. Following findings were generated from the study:-

• Maximum investors are aware of all the investment options.

• Investors do not invest in a single avenue. They prefer different avenues and

maximum investors prefer to invest in shares, mutual funds & debentures.

• Maximum investors wants their investment grow at fast rate.

• The investment decision of investors is influenced by their own decision and through

friends & relatives.

• Different factors considered by investors while investing are return, risk, tax benefits,

capital appreciation and the most prominent factor is the return on any investment

avenue.

• Majority of investors invest 15-20% of their annual income.

• Maximum investors invest on monthly basis.

• The investors investing in different avenues are highly satisfied with the return

generated by their investment option.

• Maximum investors have other investment policies.

• The most important factor is Return which influenced the decision regarding

investment.

53
5.3 : SUGGESTIONS
• INDIABULLS SECURITIES LTD have to give special preferences to trading via branch

network, telephones and Internet account.

• INDIABULLS SECURITIES LTD have improved customized products for lending

against shares.

• Integrated Trading and Depositary Account should have to modify according to the need of

the investors.

• Technology transforming desktop should have to be NEAT like terminal for Internet

trading.

• One Screen for both Cash and Derivatives Trading system have to be revised and modified..

• Equity Research Department at INDIABULLS SECURITIES LTD have to study the

market and provides information. INDIABULLS SECURITIES LTD have to customize

Insurance services.

54
5.4 : RECOMMENDATIONS

Following were the recommendations of the study:

• The various investment tools which were mostly preferred by the investors were

shares, mutual funds etc. So there should be various other means to create awareness

regarding the potential of other instruments and the tools which can be more

beneficial to the investors.

• The investors consider various factors while making investment like risk, return,

liquidity etc. There should be rational thinking so that the investor is able to know that

at what point of time they need capital appreciation instead of reducing the risk and

when they need return instead of liquidity.

• The preferred time span of investment by the investors depends upon the need of the

investor that whether they wants to have early and high returns or wants to have stable

returns, most probably the long time span is suitable because the returns are high and

safety is also there.

• The satisfaction levels of various investors are different due to different investment

alternatives they opt for. If they will be aware of each type of alternatives and the

worth of the alternatives then investing as per that there satisfaction level will also be

high.

• Investors should have the complete knowledge of stock market.

55
5.5 : CONCLUSION

Investor behavior towards stock market is one of the oldest in Asia. Its history dates

back to nearly 200 years ago. The earliest records of security dealings in India are meager

and obscure. The East India Company was the dominant institution in those days and

business in its loan securities used to be transacted towards the close of the eighteenth

century. The nature of investment differs from individual to individual and is unique to each

one because it depends on various parameters like future financial goals, the present & the

future income model, capacity to bear the risk, the present requirements and lot more. As an

investor progresses on his/her life stage and as his/her financial goals change, so does the

unique investor profile. Maximum investors are aware of all the investment options.

Investors do not invest in a single avenue. They prefer different avenues and maximum

investors prefer to invest in shares, mutual funds & debentures. The investment decision of

investors is influenced by their own decision and through friends & relatives. Majority of

investors invest 15-20% of their annual income.. The most important factor is Return which

influenced the decision regarding investment. In today‘s scenario when all services are going

to be online or in electronic form INDIABULLS SECURITIES LTD creating awareness of

online trading that client can trade from anywhere from the World.

Risk management team of INDIABULLS SECURITIES LTD care of client portfolio and

whenever the value of his portfolio will go decrease by 30% client always informed by his

Relationship Manager.

In INDIABULLS SECURITIES LTD of auction is very less because of large client base,

so he can sell shares anytime.

56
BIBILOGRAPHY

• BOOKS:

 HOW TO MAKE PROFIT IN SHARE MARKETby MAHESH CHANDRA

KAUSHIK. published by prabhatprakashan ; 1st edition (1 january 2019 )
 The psychology of money, Time less lessons on wealth ,greed and business, Jacio
Publishing House (1 september 2020 ), Mumbai, Maharastra.
 How to make money in intraday trading : A Master class by one of India‘s most
Famous Traders by ASHWIN GUJRAL.

 JOURNALS :
• Charles (1999). Economic Policy,Astonishing Growth in Americans' stock
portfolios. The Icfai Journal of Stock Market, 6 (3): 43-60. Available at
http://papers.ssrn.com/sol3/results.cfm last accessed on July5, 2009.
• 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.
• Johnson (2008). The Value of Quality: Stock Market Returns to Published Quality
Reviews. The Icfai Journal of Applied Economics, 7(3):7-22. Available at
http://papers.ssrn.com/sol3/results.cfm last accessed on June5, 2009.

• Mayank (2009).Performance Corporate Governance as a Determinant of External

Finance in Transition Economies: A Case Study of India .The Icfai University
Journal of Applied Economics, 8(1): 31- 44. Available at
http://papers.ssrn.com/sol3/results.cfm last accessed on June5,2009

• MAGAZINES :

• Economic times

• India times

• Fortune India

57
• Business India

• Forbes India

 WEB SITES :

• www.moneycontrol.com

• http://wapbusiness-standard.com/

• http://simplywall.st

• http://researchgate.net/

58
 QUESTIONNAIRE

PERSONAL PROFILE

• Name:
• Age: Less than 20 years 
20 – 40 years 
Greater than 40 years 
• Gender:
• Male 
• Female 

• Occupation:
• Service 
• Profession 
• Business 
• Student 

• Income: Less than Rs 20000 

(per month) Rs 20000 – Rs 40000 
Greater than Rs 40000 
• Qualification:

• Matric 
• Under Graduate 
c) Post Graduate 

Q1. Do you invest in share market?

i) Yes ii) No

59
Q2. Out of the following, which type of instrument are you aware of?

• Shares 
• Mutual Funds 
• Debentures 
• Bonds 
• Derivatives 
Q3.Where have you been investing?

• Shares 
• Mutual Funds 
• Debentures 
• Bonds 
• Derivatives 

Q4.At which rates do you want your investment to grow?

• Steadily 

• At an average rate 

• At fast rate 

Q5. How frequently do you invest?

a) Daily 
b) Weekly 
c) Monthly 
d) Yearly 
Q6. What percentage of your annual income do you invest in share market?
a) Up to 10% 
b) 10-15% 
c) 15-20% 
d) More than 20% 

60
Q7. By which source of information you came to know about particular option?

• Self 
• Friends and Relatives 
• Service providers and Consultants 
• Newspapers, Magazines and Advertisements 
• Agents 
• Workshops & Seminars 
Q8.Which factor do you consider before investing in share market?
• Capital Appreciation 
• Maturity Period 
• Safety of Principal 
d) Risk 
e) Return on investment 
f) Tax benefits 
g) Liquidity 
Q9. In your opinion, what would be the optimum strategy if stock market drops immediately
after you invest in it?

• Cut your losses and transfer funds into secure investments 

• Wait to see if investment improves 
c) Invest more funds to lower your losses expecting future growth 
d) Withdraw your funds and stop investing

Q10.Do you have any other investment policy?

a) Yes 
b) No
Q11. Rate the satisfaction with the return generated by your investment option?

61
 Highly Satisfied Neutral Dissatisfied Highly

Satisfied Dissatisfied
(5) (4) (3) (2) (1)
• Shares ______ ______ ______ _______ _________
• Mutual funds ______ ______ ______ _______ _________
• Bonds ______ ______ ______ _______ _________
• Debentures ______ ______ ______ _______ _________
• Derivatives ______ ______ ______ _______ _________

Q12. Rate the satisfaction with the factors that was considered while investing?

Highly Satisfied Neutral Dissatisfied Highly

Satisfied Dissatisfied
(5) (4) (3) (2) (1)
a) Return on
Investment ______ ______ ______ _______ _________
b) Tax Benefits ______ ______ ______ _______ _________
c) Capital
Appreciation ______ ______ ______ _______ _________
d) Maturity Period ______ ______ ______ _______ _________
e) Risk ______ ______ ______ _______ _________
f) Safety of principal______ ______ ______ _______ _________
g) Liquidity ______ ______ ______ _______ _________

62