BANARAS HINDU UNIVERSITY

Summer Internship Project Synopsis on

“To Study the Investment Behaviour of newly admitted
Investors through Digital Platforms”

Submitted in partial fulfillment for the award of the degree of

Master of Business Administration (International Business) 2020-22

Institute Mentor Organization Mentor Submitted By

Prof. Abhijeet Singh Mr. Sonu Kumar Saumya Jaiswal

Prof. Harsh Pradhan Team Leader 20423BIB046
IM(FMS)-BHU MBA-IB
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INDUSTRY PROFILE

Diversified financial sector of India is undergoing rapid expansion, both in terms of strong
growth of existing public companies trading their stocks and new entities entering the market.
This sector comprises stock broking companies that offer educational courses, portfolio
management companies and other smaller financial entities. The new entities like payments
banks which are created recently are allowed by the Banking regulator, due to this addition in
the types of entities operating in the sector. In the world the Indian Asset Management
industry is among the fastest growing. The National Stock Exchange of India Limited (NSE) is
the leading stock exchange of India which is located in Mumbai. It was the first exchange in
India which provided a modern and fully automated screen-based electronic trading system
which provides easy trading facility to the investors spread across all over the country. Total
market capitalization of National Stock Exchange is more than US$2.27 trillion, which is the
world's 11th-largest stock exchange as of April 2018. In 2019, US$ 2.5 billion was raised across
17 IPOs. Total 10 IPOs were issued in 2020 till September end. India is among the best in
protecting shareholders' rights according to the reforms implemented by Securities and
Exchange Board of India (SEBI) in the World Bank's Ease of doing Business 2020 report.
Indian Brokerage Industry-
 Indian brokerage industry has been undergoing structural shift from percentage
led business model to flat brokerage & subscription-based model.
 Overall market ADTO (average daily turnover) has increased over ~2x from
Rs.14.4 lakh crore in Q3FY20 to Rs. 31.1 lakh crore in Q3FY21, and has shown
increasing trends sequentially.
 Client addition also has been on similar lines with active clients increasing 67%
YoY to ~1.63 crore; with substantial participation from New to Market customers
from tier-2 and below cities.
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COMPANY PROFILE
Kotak Securities is one of the leading stock broking companies in India and a subsidiary of
Kotak Mahindra Bank Limited - a renowned private-sector bank.
As a stock broking company, Kotak Securities brings to you more than 25 years of experience
in serving a diverse customer base of retail and institutional investors.
 It was founded in 1994 as a subsidiary of Kotak Mahindra Bank
 Deals with over 17 lakhs customers
 Falls under the category of “Full service brokerage firm”
 Corporate members with the Bombay Stock Exchange (BSE) and the National Stock
Exchange (NSE).
 Depository participant with National Securities Depository Limited (NSDL) and Central
Depository Services Limited (CDSL)
 1209 branches, franchisees and satellite offices offers services to 11.95 Lakh customers.
 It offers three-in-one account which allows investor to open demat, trading as well as a
bank account together with Kotak Mahindra Bank Limited.
 Provides services such as-
 Stock Broking services
 Portfolio Management Services
 Research Expertise
 Provides updated market data
 International reach

FUNCTIONAL AREAS:
Marketing: The marketing interns where asked to promote the company applications among
their peers and assist them with queries. Engaging in the live trading with research analysts
generating leads. Assisting research calls for long-term trading, short-term trading and intra-
day trading.
Training: Training is provided to every new batch of interns for few days and the learnt
techniques were examined on demo accounts which will be opened by each intern. Once the
training is done for certain period real accounts will be opened.
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RESEARCH METHODOLGY
RESEARCH OBJECTIVE:
1. To study investors’ perception towards Indian Stock Market.
2. To study the social media’s influence on investors.
3. To study the investment behavior of investors and the factors that affect their
investment decisions in stock market.
4. To analyze the investors’ perception during analysis and selection of stocks.
RESEARCH DESIGN:
The research will be of the descriptive type because we’ll be following the structured survey
pattern and would ultimately make a conclusion at the end.
SAMPLE DESIGN:
. Sample size: A sample size for this study is 101
. Sampling technique: The sampling technique used would be non-probabilistic convenience
sampling technique.
SOURCE OF DATA:
 Primary data is used for the purpose of study which has been collected through
structured and non-disguised questionnaire.
 Secondary data is used which were published on the websites of BSE, NSE, Money
control, Kotak securities official, published Journals etc.
DATA COLLECTION:
For this research main tool used for collection of data from the respondents is a Questionnaire
was used. Questionnaires are a series of written questions and were circulated to people and
were asked to fill the same.
TOOLS FOR ANALYSIS:
Simple percentage, Bar Graph, Pie Chart, Line chart have been used as Data analysis tool.
DATA ANALYSIS AND INTERPRETATION:
For the purpose of analyzing, raw data was summarized into charts and the results have been
carried out. The questions, which have alternative choices, were analyzed by taking
percentage. Proper analysis of the data has been made to get proper results.

FINDINGS AND CONCLUSIONS

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 In the nation where population is more than 1.3 billion but only handful of them invest
in stock market. People still are not much risk takers when it comes to investing.
 Only 60% of the people who are having knowledge of stock market invest in the
market, which show that most of the people are not ready to take risk and are short tem
investors.
 As my majority if the population size is students, most of them are investing not more
than a year.
 Investors invest in stock market to gain short term gain otherwise they prefer Mutual
Funds and Bank Fixed Deposit as their major investment.
 Majority of the investor’s decision are influenced by social media. Youtube and Twitter
are the main influence of the investors as they are easily available.
 Majority of investors wait for the recovery when their share value gives negative return,
which is a good technique to minimize the loss.
 Industries like IT, Pharmaceutical and Bank in the same order are preferred by the
investors as these industries are well set and give decent return as compared to other
industries.
 Mid cap stocks are preferred as it gives more return that large cap and also mid cap
stocks has less risk as compared to small caps.
 Investors are not fully satisfied with demat system and brokerage charges, this is the
reason why 75% of the demat accounts in India are inactive because people open their
multiple demat account in search of good brokerage and services.

RECOMMENDATIONS AND SUGGESTIONS

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 Investors should be encouraged to take calculated risk in order to gain more

return on their investment, as most of the investors who have knowledge of
stock market are also not investing in it.
 Investors should try do stock analysis on their own and try to make a good
portfolio so that they can invest in stock market with minimum risk.
 Investors should stop using multiple demat accounts which will not only
exaggerates the investor base, but also provides a false picture of Indian
capital markets.
 People from higher group of income invest more in a stock market rather than
any other income group, in my view people are from lower segment, or
earning low should also invest their money in their market there are many
other options available, it gives them good return or help them in case of
urgency.
 Investors should have the enough knowledge of stock market before entering.
 I want to suggest to the Broking companies to give information to the
investors about stock market and eliminate the perception that share market is
a gambling market by providing better services to the clients through
relationship managers and also through dealers who execute the orders of the
client.