Assignment 1

Inference Report

Group- 1
Dhruvin Patel-MBA07101
Yogi Raval-MBA07111
Rohan Aggarwal-MBA07116
Namrata Chaudhari-MBA07095
Komal Verma-MBA07069
Sahil Kanojia-MBA07120
Pradyut Suman Kakati-MBA07104
 Inferences

Questions on investments so far:

• Generally, people prefer to invest in shares because banks and other investment
opportunities do not offer a good rate of interest, and it is considered as a good source of side
income if you know how to trade in the stock market and is a good source of wealth creation.
Also, you can adjust your goals with the amount of risk you want to take.
• Also, there are certain risks associated with investing in stocks.
1. Political parameter
2. Global demographics
3. Volatile
4. Fundamentals of companies
5. Willingness to take risks
6. Market Capitalization
7. Economic Crisis
8. Taxation Policies

Questions on Covid19 impact on investment behaviour:

• Impact on investors:
1. Drastic fall in share market
2. Portfolio loss
3. Panic Selling
• Impact on Share Market:
1. Uncertainty
2. Investors were not afraid to invest
3. Withdrawal of FII and DII’s
4. V-shape recovery
• Prospective companies to invest in:
1. Pharmaceuticals
2. IT companies
3. Clothing companies (Jockey, Big boss, Dollar etc.)
• Information considered while selecting stocks:
1. Financial fundamentals
2. Leadership
3. Future prospects
4. Corporate governance
5. Government policies
6. Business model
Questions on market movements:

• Events responsible for movements in the share market:

1. Global drivers
2. Economic factors – GDP, Inflation
3. Public sentiments
4. Merger & Acquisitions
5. History and operation duration of the company
• Stock market in 1 year/ 3 year/ 10 years
1. 1-3 years will be more volatile, but in 10 years, people will be very optimistic
2. Global recession cycle of 45 years may come in the stock market, which may lead to a
negative impact on the stock market
3. If the governance of the country will not change, then in the long run, investors may invest
more, and the market may see a good hike

Frequency table

Sl. No. Word Frequency

1 Market 22+34+18+26+32+35+26=193
2 Risk 14+9+16+9+14+5+16=83
3 Covid 19+7+8+11+7+8+10= 60
4 I.P.O. 12+4+7+6+5+5+10=49
5 India 9+8+5+2+11+4+3=42
6 High 8+12+1+1+11+2=35
7 Long 5+7+1+3+10+4+2=32
8 Government 5+3+3+9+2=22
9 Return 2+12+1+2+1+3=21
10 Profit 2+3+1+1+6+1+1+1=16
11 World 2+6+1+1+1=11
12 Tech 5+1+2+1+1=10
13 Recession 1+1+3+3+1=9
14 Ukraine 1+2+1+1+2+1=8
15 Inflation 3+3+2=8
16 Service 7+1=8
17 China 3+1=4
Conclusion

To draw conclusions from all the interviews taken by each and every member of our group, we have
read all the transcribes and made the above frequency table comprising of the relevant words. From
the interviews, we can concur that everybody was well aware of where the market was going.
Everybody seemed to respect the market and wanted to minimize their risks. Everybody knew that
Covid 19 had a dramatic impact all around the world, and hence almost every market in every part of
the world had seen a dip. Every individual has a long-term horizon with respect to their investments.
They all knew that the market would correct itself from its decline due to COVID-19. They all wanted
to build wealth in the long term, and hence they knew that they had to keep their calm.

When it comes to the future, everybody seemed to believe in the economy of the country and thought
that investing in the country’s economy would be worthwhile. In the long run, India would prosper,
and markets would reward investors accordingly. They, however, knew that the government ruling
the country plays a very important factor in the country’s economy.

When we look at the two words risk and return, we find that people are more cautious about the risks
than how much they’re interested in the returns. So, they wanted a moderately good return in the
long term with the minimum risk possible.

When talking about what kind of industries they see growth in the future, a lot of them talked about
the profits a company was likely to make in the future. Those companies that could cater to the needs
of the future would be the ones people would be looking to invest in. Everybody knew that there was
a global force that would dictate the industries that would prosper in the future. Some of them
thought that the tech industry was likely to see tremendous growth in the coming years. Many thought
that the service industry would see tremendous growth in the future.

When it comes to the present situation, people were aware of the tremendous rise that the market
has seen after the Covid decline. Some of them thought that the market would correct itself and we
would have a recession. The growing rate of inflation in many countries all over the world was also a
point of concern for a number of investors that we interviewed. A lot of them also talk about the
Russia-Ukraine war and its implications on a global scale that could influence the market to a great
extent. Some of them even talked about the power and influence of China in the global market.

To conclude, we can say that our typical investor would like to see his wealth grow in the long run.
The investor is aware of the market forces that could dictate the returns in the short term. But the
investor is very optimistic about the Indian economy and the economy of the world in general and
thinks that a well-balanced portfolio which could minimize the risk for a given return would reward
the investor well in the long run-in spite of the volatility that markets are susceptible to.