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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 Dr. Ramkumar
Baliyan
Date: Internal
guide,
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 Page

No. 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 12

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INDIAN CAPITAL MARKET

(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

4. 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

5. RESEARCH ANALYSIS – AUTOMOBILE INDUSTRY 72

(a) Bajaj Auto 79

(b)Mahindra & Mahindra 85

6. CONCLUSION 95

7. FINDINGS 97

INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD.
INDIAN CAPITAL MARKET

8. LIMITATIONS 99

9. SUGGESTIONS 101

10. GLOSSARY 107

11. BIBLOGRAPHY 110

INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, AHMEDABAD.