Summer Internship Project

on
“CONSUWER BEHAVIOUR ON THE SHARE MARKET”

SUBMITADE TO:

Institute Code: 778

Som-Lalit Institute of business Management
Under the guidance
of
Prof.PRIYAL SANGHVI
In partial Fulfilment of the Requirement of the award of the degree of
Master of Business Administration (MBA)
Offered By
Gujarat Technological University Ahmedabad

Prepared by: RAULJI VIRENDERSINH NARENDERSINH

Enrolment No: 217780595007
MBA (Semester-III)
September 2022

1|Page
STUDENT’S DECLARATION

I hereby declare that the Summer Internship Project Report titled ‘CONSUMER BEHAIOUR ON
THE STOCK MARKET’ is a result of my own work and my Indebtedness to other work
publications, references, if any, have been duly acknowledged. If I am found guilty of copying from
any other report or published information and showing as my original work, or extending plagiarism
limit, I understand that I shall be liable and punishable by the university, which may include ‘Fail’ in
examination or any other punishment that university may decide.

Enrollment no. Name Signature

207780592107 RAULJI VIRENDERSINH

NARENDERSINH

Place: Date:

This is to certify that project work embodied in this report entitled “CONSUMER BEHAVIOUR
ON THE STOCK MARKET” was carried out by RAULJI VIRENDERSINH NARENDERSINH
227780592107 of Som-Lalit Institute of Management Studies (778).

2|Page
The report is approved / not approved.
Comments of External Examiner:

This report is for the partial fulfilment of the requirement of the award of the degree of Master of
Business Administration offered by Gujarat Technological University.

(Examiner’s Sign) Name of

Examiner:
Institute Name:

Institute Code:

Date:

Place:

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 INDEX
Table Of Contents

4|Page
SR NO. TOPIC PAGE NO.

1 Table of contents

2 Company Introduction
3 Share Market

4 Primary Market

5 Secondary Market

6 Market Index

7 Swot Analysis
8 Introduction About The Topic
9 Consumer Behavior
10 Literature Review
11 Data Analysis
12 Overall Findings
13 Conclusion
14 Questionnaire
15 Bibliography

5|Page
Motilal Oswal is a prominent Indian entrepreneur who holds the esteemed
positions of founder, chairman, and managing director of Motilal Oswal
Financial Services Ltd (MOFSL). He established this enterprise in collaboration
with Raamdeo Agrawal in the year 1987.
Motilal Oswal, a native of Padru in Siwana, Barmer, Rajasthan, is a
distinguished individual who has made significant contributions to the business
world. He received his education from The Govt School in Padru and later
pursued his studies at the CFO Institute of Chartered Accountants of India.
Currently, he serves as the Co-Promoter, Chairman, and Managing Director of
the esteemed Motilal Oswal Group.

INTRODUCTION ABOUT THE

COMPANY

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 How did Motilal Oswal grow over the years?
Raamdeo Agrawal and Motilal Oswal promptly recognized the deficiencies
present in the Indian market as a result of insufficient knowledge and
expertise.Hence, they founded Motilal Oswal with the aim of educating Indians
about how stock markets work, how the prices of shares go up and down, how
the shares are to be bought and sold, what factors affect the growth of a
company’s stock, how risk is managed, etc., and teaching them how to create
wealth through stock market.
Motilal Oswal's dedicated research team conducts thorough analysis and
provides valuable guidance to investors and traders, enabling them to optimize
their earnings from the stock market while effectively managing risks.
Renowned for its client-centric approach, Motilal Oswal has maintained its
commitment to serving clients by continuing to hire during the pandemic-
induced lockdown. This commitment is a testament to the company's
dedication to providing research-backed and honest advice to its clients. Over
the years, Motilal Oswal has played a significant role in educating Indians
about wealth creation, establishing itself as a prominent financial
conglomerate. Its unwavering honesty and transparency have contributed to
its substantial growth, attracting a diverse range of clients, including retail
investors, high-net worth individuals, foreign institutional investors, mutual
funds, and more.
Motilal Oswal is headquartered in Mumbai and has a wide network spread
across 550+ cities. From a company run by just 2 young CAs, Motilal Oswal now
employs around 10,000 talented folks and is still growing. In addition, it
possesses a comprehensive range of financial services and products, including
Private Wealth, Private Equity, Institutional Equities, Investment Banking,
Housing Finance, Retail Broking, Asset Management, and numerous others.

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 How is Motilal Oswal different from other brokers?

Motilal Oswal lacks a competitive edge in terms of pricing due to its absence of
flat brokerage and discount brokerage plans, unlike other brokers.

Nevertheless, Motilal Oswal firmly believes that its robust research and sincere
guidance enable clients to achieve profits, thereby validating its pricing model.
Consequently, Motilal Oswal persists in charging clients based on its own
model, prioritizing the provision of exceptional services over adopting the
popular flat brokerage system that entices numerous investors and traders in
the present era.

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 Awards: -
In recognition of his notable achievements and contributions to the capital
markets, Mr. Motilal Oswal, Chairman & MD, has been honored with several
prestigious awards.
These include the Outstanding Institution Builder of the Year award at The
AIMA Managing India Awards, the Special Contribution award to Indian Capital
Markets by Zee Business, the Hall of Fame for Excellence in Franchising by
Franchising World Magazine, and the Champion of Arthshastra award by the
Rotary Club.

RECOGNITION: -
Oswal has been honored with the Rashtriya Samman Patra by the Government
of India for his exceptional contribution as one of the highest income taxpayers
in the country during the period of FY95-FY99.
In addition to his professional achievements, Oswal is actively involved in
various social organizations. He holds the position of President at the Jain
International Trade Organisation (JITO) and serves as a Trustee of the
"Agarwal-Oswal Chhatravas" at the Rajasthan Vidyarthi Griha, among other
notable affiliations.
Furthermore, Oswal is a published author of two books on The Essence of
Business & Management and The Essence of Life, both of which contain
insightful quotations.

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Motilal Oswal Financial Services: -
Motilal Oswal Financial Services Limited is an Indian financial services
enterprise that provides a diverse array of financial products and services. The
company was established in 1987 by Motilal Oswal and Raamdeo Agrawal. It is
currently listed on both the Bombay Stock Exchange (BSE) and the National
Stock Exchange (NSE). As a prominent player in the Indian financial services
sector, Motilal Oswal Financial Services Limited has established a reputation
for delivering high-quality financial solutions to its clients. Its listing on the BSE
and NSE stock exchanges further underscores its position as a leading financial
services provider in India.

Management: -
Motilal Oswal – Founder, MD & CEO of MOFSL
Raamdeo Agrawal – Co-founder & Chairman of MOFSL & MOAMC
Navin Agarwal – MD & CEO, MOAMC
Abhijit Tare – CEO, Investment Banking Business
Rajat Rajgarhia - MD & CEO, Motilal Oswal Institutional equities
Ajay Menon - MD & CEO, Broking & Distribution

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 Products And Services:-
Motilal Oswal offers a range of financial products and services, including equity
and commodity trading, investment advisory services, initial public offerings
(IPOs), systematic investment plans (SIPs), portfolio management services, and
mutual fund investments. These offerings cater to the diverse investment
needs of clients seeking to invest in various financial instruments. The
company's expertise in the financial markets and its commitment to providing
quality services have made it a trusted name in the industry. Motilal Oswal's
comprehensive suite of financial products and services enables clients to make
informed investment decisions and achieve their financial goals.

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 Awards and recognitions: -
Mr. Motilal Oswal, MD & CEO, has been recognized as the Outstanding
Institution Builder of the year at The AIMA Managing India Awards. He has also
achieved remarkable success in various other areas.
For instance, Motilal Oswal won the GOLD award for marketing effectiveness
at the Global ACEF customer engagement awards for their Think Equity.
Think Motilal Oswal TV Ad. Additionally, the Motilal Oswal TV Ad received 3
awards at the ABBY Awards for Creative Excellence.
The Brand of the Year Award at the CNBC TV18 - India Business Leadership
Awards was also bestowed upon Motilal Oswal Financial Services Ltd.
Furthermore, MOFSL was honored with the title of 'Best Domestic Brokerage
India' and received numerous other recognitions at the Asia Money Brokers
Poll 2021.
In 2019, MOFSL was recognized with the 'Business Leadership Award' for
excellence in franchising and business development at the Franchise India
Awards.
MOAMC was listed among 'Asia's Top 100 Money Managers' for 2017 by the
Institutional Investor magazine and was also honored with the 'Best Portfolio
Manager' award at the ASSOCHAM Capital Markets Intermediaries Excellence
Awards 2017. MOFSL was featured in Forbes Super 50 Companies 2017.
Motilal Oswal Securities received two awards for its equity research in IT and
commodity (forex) segments at India's Best Market Analyst Awards 2014, also
known as ZEE Business Awards 2014. Mr. Jinesh Gandhi, an analyst at Motilal
Oswal Financial Services Ltd, won the Best Market Analyst Award for the
Equity-Auto category at 'India's Best Market Analyst Awards 2013' organized
by Zee Business. Motilal Oswal Securities was honored with the 'Best
Performing National Financial Advisor Equity Broker' award in both 2010 and
2012 at the CNBC TV18 Financial Advisor Awards. In 2010, CNBC TV18 also
awarded Motilal Oswal with the Best Performing Equity Broker Award at the
CNBC TV18 Financial Advisor Awards. Furthermore, in 2010, the Motilal Oswal
IB team won the Asia Pacific Cross Border Deal of the year award, and the CEO,
Ashutosh Maheshvari, received the India M&A Investment Banker of the Year
award.

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Milestones:-
1987 – Founded in Mumbai by Motilal Oswal and Raamdeo Agrawal.
1990 – Listed on BSE.
1994 – Listed on NSE.
2007 – Went public via IPO; Featured as a case study in Harvard Business
School.
2009 – Customer base crossed 5,00,000.
2010 – Launched Motilal Oswal Foundation.
2021 – AUM (assets under management) crossed the Rs 2 trillion mark.
2022 – Got certified as a 'Great Place to Work' for the fifth time.
Listings and Shareholdings:-
The equity shares of Motilal Oswal Financial Services are listed on the Bombay
Stock Exchange, and the National Stock Exchange of India.

Shareholders (as on 31-12-2022) Shareholding (%)

Promoters 69.47%

Mutual Funds 05.89%

Financial Institution/Banks/Insurance 00.00%

Foreign Institutional Investors (FII) 07.35%

Corporate Bodies 00.72%

Individuals 09.15%

NRIs/OCBs 00.38%

ADRs/GDRs NIL

Others 7.04%

Total 100%

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14 | P a g e
 STOCK MARKET
The stock market comprises a network of markets and exchanges that facilitate
the buying, selling, and issuance of publicly held company shares.
Within the share market, equities, or stocks, represent fractional ownership in
a given company, and the stock market serves as a platform for investors to
trade ownership of these investible assets.
These financial activities are conducted through institutionalized formal
exchanges or over-the-counter (OTC) marketplaces that operate under a well-
defined set of regulations.
As such, the stock market provides a seamless exchange of shares for
investors.
There are majorly two types of the stock market was there as under:-

TYPES OF SHARE
SHARE MARKET
MARKET

PRIMARY MARKET

SRCOUNDERY MARKET

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 PRIMARY MARKET:
The primary market is the platform where a company issues new shares to
raise long-term funds for new securities.
This market is where underwriting companies/issuers, often investment banks,
create and trade stocks and bonds for the first time.
Investors do not engage in direct buying and selling of securities with each
other, but rather purchase them directly from the banks responsible for issuing
them.
The primary market serves as a source of new securities, often on an exchange,
where companies, governments, and other groups obtain financing through
debt-based or equity-based securities.
Primary market issues include IPO, private placement, preferred allotment,
and right issue.

THIS IMAGE SI TAKEN FROM THIS LINK

https://www.wallstreetmojo.com/wp-content/uploads/2018/05/Secondary-Market-1.jpg

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 SECONDARY MARKET

Secondary market, also known as the stock market or bond market,

encompasses all stock exchanges worldwide.
In this market, investors engage in the trading of previously issued securities
without the involvement of the issuing company.
Unlike the primary market, where investors can acquire a stake in a company
through the offering company or underwriting bank, the secondary market is
primarily composed of retail investors, advisory service providers, brokers
(including commission brokers and security dealers), and financial
intermediaries such as non-banking financial companies and insurance firms.

THIS IMAGE SI TAKEN FROM THIS LINK

https://www.wallstreetmojo.com/wp-content/uploads/2018/05/Secondary-Market-1.jpg

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Version 1:
Let's examine a few instances from the stock market in detail.
• Example 1
The stock market consists of primary and secondary markets. For instance, let's
say an online payment service provider decides to raise funds for expanding its
business through an IPO in the stock market.
By creating securities, the company becomes publicly traded with marketable
shares in the primary market. Once its shares in the primary market are traded,
the company enters the secondary market.
An investor named Clara purchases the company's stock at a predetermined
price. Consequently, she becomes a shareholder in the business and has the
choice to buy or sell her shares based on market conditions and live share
market news.
• Example 2
According to the latest updates in the share market, Nasdaq has recently
experienced a decline due to a significant decrease (35.1%) in Netflix
subscribers. As anticipated by investors, this substantial one-day drop in the
streaming service has also had a negative impact on other high-growth
companies..
Walt Disney, Roku, and Warner Bros Discovery stocks fell over 5.5%. Moreover,
Zoom Video Communications, Doordash, and Peloton Interactive stocks
dropped by 6%-11.3%.
Contrastingly, the blue-chip Dow reported a second-consecutive higher close
owing to positive earnings from Procter & Gamble (2.7%). Furthermore, IBM
Corp’s earnings also rose by 7.1%.

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 STOCK EXCHANGE: -
The stock exchange plays a pivotal role in the capital market, providing a
secure and structured environment for trading. It operates under well-defined
rules and regulations, facilitating the buying and selling of securities such as
debentures and shares issued by publicly listed companies, as well as
government, municipal, and public bonds.

BSE NSE

STOCK MARKET
EXCHANGE IN MSE CSE
INDIA

INDIA NSE
INX (IE)

List of stock exchanges in India.

i. BSE (Bombay Stock Exchange)
ii. NSE (National Stock Exchange)
iii. CSE (Calcutta Stock Exchange)
iv. India INX (India International Exchange)
v. Metropolitan Stock Exchange
vi. NSE International Exchange

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 Algorithmic trading
Algorithmic trading, also known as algo trading, is a sophisticated trading
technique that is offered to clients of Motilal Oswal. The firm provides its
clients with the added benefit of Artificial Intelligence (AI) trading, which is a
highly effective tool. This technology offers a range of features that are
designed to enhance the trading experience for clients. Some of the key
features include: advanced analytics, real-time market data, and automated
trading strategies. With the use of AI trading, clients can make informed
decisions and execute trades with greater precision and speed, resulting in
improved investment outcomes.

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 The algorithms integrated into the system provide signals to aid in the
entry and exit of multiple asset classes.
 The team at Motilal Oswald has developed strategies aimed at achieving
favorable returns.
 The software is designed to alert traders whenever a market opportunity
arises, enabling them to generate profits.
 Additionally, clients using Motilal Oswald trading have access to back
testing reports, which provide insights into various aspects of trading,
including strategy performance and margin requirements.
 These features make Motilal Oswald trading a valuable tool for investors
seeking to optimize their trading strategies and maximize their returns.

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 Trade Guide Signal (TGS)
Motilal Oswald offers a novel algorithmic trading tool, the Trade Guide Signal
(TGS), which operates on a set of predetermined technical rules to generate
buy/sell ideas.
This cutting-edge tool also provides real-time SMS notifications when an
entry/exit signal is generated, ensuring that no trading opportunity is missed.
The TGS is a fully automated, rule-based system that enables traders to make
informed decisions based on technical analysis.
With its advanced features and reliable performance, the TGS is an
indispensable tool for traders seeking to optimize their trading strategies and
achieve greater success in the financial markets.
Trade Guide Signal (TGS) is a valuable trading tool for various types of traders,
including those who employ postal trading strategies and momentum.
This tool assists traders by automatically generating signals for buying and
selling stocks across different segments, such as equity, commodity, and
currency.
TGS operates on advanced algorithms and innovative techniques that utilize
predictive analysis to determine the intensity of trading variables.
By leveraging these strategies, TGS provides traders with valuable insights and
guidance to make informed decisions and optimize their trading activities.
Overall, TGS is a powerful tool that can help traders achieve their financial
goals and maximize their returns.

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HOW THE TRADE GUIDELINE SIGNAL HAS BEEN LOOK?
`

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 SWOT ANALYSIS OF MOTILAL OSWAL FINANCIAL
SERVICES

Motilal Oswal Financial Services recognizes the value of conducting a SWOT

analysis to enhance its market position. This management framework enables
the brand to capitalize on its strengths and opportunities while addressing its
weaknesses and threats. By benchmarking its business and performance
against competitors, MOFSL can strategically build upon its strengths and
improve its overall performance. As a prominent brand in the banking and
financial services sector, MOFSL is committed to leveraging the insights gained
from SWOT analysis to enhance its market position and deliver exceptional
value to its customers.

SWOT ANALYSIS

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 STRENGTH
Motilal Oswal Financial Services' competitive advantage in the market is
derived from its key business aspects, which are considered its strengths.
These strengths encompass various factors, such as its financial position,
experienced workforce, unique product offerings, and intangible assets,
including brand value. A comprehensive SWOT analysis of Motilal Oswal
Financial Services reveals its strengths, which are critical to its success in the
industry. By leveraging these strengths, the company can maintain its
competitive edge and continue to provide exceptional financial services to its
clients.
 Our company offers a diverse range of financial products and services
with a focus on catering to premium traders.
 Our emphasis is on the efficient execution of trades to ensure maximum
returns for our clients. We have a strong private equity division that
provides investment opportunities to our clients.
 With over 1500 offices across India, we are well-positioned to provide
our clients with personalized financial solutions.
 Our financial products and services include Wealth Management,
Broking & Distribution, Commodity Broking, Portfolio Management
Services, Institutional Equities, Private Equity, and Investment Banking
Services.
 We are committed to delivering exceptional value to our clients through
our comprehensive suite of financial solutions.

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 WEAKNESSES

Group that need to be addressed to enhance its market position. These include
a limited product portfolio, a lack of geographical diversification, and a
relatively low brand awareness compared to its competitors. By addressing
these weaknesses, the Motilal Oswal Financial Group can improve its
competitive edge and increase its market share. It is essential for the company
to identify and address its weaknesses to remain relevant and competitive in
the ever-changing business landscape.

Services SWOT Analysis:-

 Group that need to be addressed to enhance its market position.

 These include a limited product portfolio, a lack of geographical
diversification, and a relatively low brand awareness compared to its
competitors.
 By addressing these weaknesses, the Motilal Oswal Financial Group can
improve its competitive edge and increase its market share.
 It is essential for the company to identify and address its weaknesses to
remain relevant and competitive in the ever-changing business
landscape.

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 OPPORTUNITIES
There exist various avenues for a brand to enhance its business, including but
not limited to geographic expansion, product enhancements, and improved
communication. These opportunities can be leveraged to augment the brand's
overall performance.
Following are the opportunities in Motilal Oswal Financial Services SWOT
Analysis:
1. The rural market is experiencing growth.
2. Urban youth are seeking investment opportunities to earn income.

THREATS
The potential risks that a business may face are known as threats, which can
have an adverse impact on its operations. These threats may include
heightened competition, evolving governmental regulations, alternative
products or services, and other similar factors.
The threats in the SWOT Analysis of Motilal Oswal Financial Services are as
mentioned:
1. The government and Reserve Bank of India have implemented rigorous
economic measures.
2. Foreign financial firms have entered the Indian market.

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 INTRODUCTION TO THE
TOPIC OF DATA ANALYSIS

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 INTRODUCTION TO THE TOPIC:
My topic is a consumer behaviour on the share market in this there is a too
many things that we will get understand and it is help towards the company
and to me also.
The consumer behaviour is a very main thing in the market and it help lot to
the all the company and it help company to grow in the market now let
understand the consumer behaviour in detail.
This topic is divided in to the two different parts and that are a
1. Consumer behaviour
2. Share market
Now how this both is connect with each other that we will discuss.
That both players an important role in the market because when the customer
is not there so that how the market will run and this both are interconnected
with each other and both will help to them in the significant way.
Now let’s learn about some basics on this both as under: -

CONSUMER BEHAVIOUR
What is consumer behaviour? Consumer behaviour is the actions and
decisions of individuals or households in selecting, purchasing, using and
disposing of a product or service. Many psychological, sociological and cultural
factors influence how consumers engage in the marketplace.
It is a multi-step process that includes problem identification, data collection,
alternative research, purchase decision and subsequent evaluation of the
experience. At these stages, consumers may be influenced by things such as
personal views and values, social practices, marketing campaigns, product
characteristics, and environmental conditions. Understanding consumer
behaviour is essential for companies to create effective marketing plans and
provide products and services that satisfy customers' wants and needs.
Marketers need to analyse and understand data about customer behaviour to
see trends and patterns, anticipate demand, and make smart choices about
product design, pricing, promotions, and distribution.

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 SHARE MARKET
The stock market is a collective term used to describe various exchanges where
publicly held company shares are traded. These financial transactions are
conducted through formal exchanges and over-the-counter (OTC)
marketplaces that operate under specific regulations. The terms "stock
market" and "stock exchange" are often used interchangeably. Traders in the
stock market engage in buying or selling shares on one or more of the stock
exchanges that comprise the overall stock market. The prominent stock
exchanges in the United States include the New York Stock Exchange (NYSE)
and the Nasdaq.

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In the simple words the share market is as under?

Are you looking for a way to invest your hard-earned money?

Look no further than the stock market! This venue allows buyers and sellers to
exchange equity shares of public corporations, making it a key component of a
free-market economy.
By providing democratized access to investor trading and exchange of capital,
the stock market creates efficient price discovery and efficient dealing.
And don't worry about the safety of your investments - the U.S. stock market
is regulated by the Securities and Exchange Commission (SEC) and local
regulatory bodies. So why wait? Join the millions of investors who have found
success in the stock market and start investing today!

behavioral finance is based

on psychology which suggest
that
human decision process are
subject to several cognitive
illusions and biases. These
illusions are divide into four
groups: Heuristics factors,
Prospect factors, Herding factors
and market factors.

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a) Heuristics are defined as a
rule of thumb, which makes
decision making easier
especially in complex and
uncertain environments (Ritter,
2003, p.431) by reducing
the complexities of assessing
probabilities and predicting
values to simpler
judgements (Kahneman &
Tversky, 1974, p.1124).
Kahneman and Tversky seems to
be ones of the first writers
studying the factors belonging
to heuristics when
introducing three factors namely
Representativeness, Availability
bias and anchoring

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(Kahneman & Tversky, 1974,
p.1124-1131). Waweru et al. also
list two factors named
gamblers fallacy and
overconfidence into heuristic
theory (Waweru et al., 2008,
p.27)
b) Prospect theory and
Expected utility theory (EUT)
are considered as two
approaches to decision making
from different perspectives.
Prospect theory focuses
on subjective decision making
influenced by investors value
system, whereas EUT

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concentrates on investors rational
expectations (Filbeck, Hatfiels &
Horvath, 2005,
p.170-171). EUT is the normative
model of rational choice and
descriptive model of
economic behavior, which
dominates the analysis of
decision making under risk.
Nonetheless, this theory is
criticized for failing to explain
why people are attracted to
both insurance and gambling (Le
Phuoc Luong & Doan
R.Hedtroim, 2011, p.19).
Prospect theory explains some
state of mind affecting an
individual decision making

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process including regret aversion,
Loss aversion and mental
accounting (Waweru et
al., 2003, p.116)
c) Market factors such as
price changes, market
information, fundamentals of
underlying stocks, customer
preference, over reaction to
price changes and
fundamentals of underlying
stocks have an impact on
investor’s decision making.
(Waren et al., 2008, p.36).
Normally changes in the
market information,

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fundamentals of underlying
stock and stock price cause
over reaction and under
reaction to the price change.
These changes are empirically
proven to have high
influence on decision making
behavior of investors.
d) Herding effect in financial
market is identified as tendency
to investor’s behaviors to
follow other’s reactions. In the
perspective of behavior, herding
can cause some
emotional biases, including
conformity, congruity and
cognitive conflict, the home

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bias and gossip. Investors may
prefer herding if they believe that
herding can help
them to extract useful and reliable
information (Le Phuoc Luong &
Doan R.Hedtroim,
2011, p.21).
Behavioral factors influencing the
investment decision making
(source: Waweru
et al.,2008)
Group Behavioral variables
Heuristic theory
Representativeness,
Overconfidence,
Anchoring, Gambler’s fallacy,
Availability
bias.

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Prospect theory Loss aversion,
Regret aversion, Mental
accounting.
Market factors Price changes,
Market information, Past
trends of stocks, Fundamentals of
underlying stocks, customer
preference,
over reaction to price changes.
Herding effect Buying and selling
decisions of other
investors, choice of stocks to
trade of
other investors, Volume of stocks
to
trade of other investors, Speed of
herding.

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As mentioned in the literature
review, it is undoubtedly that
behavioral factors impact
the investment decisions of the
investors in the financial markets,
especially in the
stock markets. This study
explores the influence levels of
behavioral variables on the
individual investors’ decisions
and their investment performance
as in the following
hypothesis.
Hypothesis H1: The behavioral
variables that influence the
investment decisions of

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individuals are grouped into
four factors as the reviewed
theories: Heuristics,
Prospect, Market, and Herding.
This hypothesis is tested by
synthesizing the respondent’s
evaluations of the
influence degrees of behavioral
factors on investment decisions.
behavioral finance is based
on psychology which suggest
that
human decision process are
subject to several cognitive
illusions and biases. These
illusions are divide into four
groups: Heuristics factors,
Prospect factors, Herding factors

41 | P a g e
and market factors.
a) Heuristics are defined as a
rule of thumb, which makes
decision making easier
especially in complex and
uncertain environments (Ritter,
2003, p.431) by reducing
the complexities of assessing
probabilities and predicting
values to simpler
judgements (Kahneman &
Tversky, 1974, p.1124).
Kahneman and Tversky seems to
be ones of the first writers
studying the factors belonging
to heuristics when

42 | P a g e
introducing three factors namely
Representativeness, Availability
bias and anchoring
(Kahneman & Tversky, 1974,
p.1124-1131). Waweru et al. also
list two factors named
gamblers fallacy and
overconfidence into heuristic
theory (Waweru et al., 2008,
p.27)
b) Prospect theory and
Expected utility theory (EUT)
are considered as two
approaches to decision making
from different perspectives.
Prospect theory focuses

43 | P a g e
on subjective decision making
influenced by investors value
system, whereas EUT
concentrates on investors rational
expectations (Filbeck, Hatfiels &
Horvath, 2005,
p.170-171). EUT is the normative
model of rational choice and
descriptive model of
economic behavior, which
dominates the analysis of
decision making under risk.
Nonetheless, this theory is
criticized for failing to explain
why people are attracted to
both insurance and gambling (Le
Phuoc Luong & Doan
R.Hedtroim, 2011, p.19).

44 | P a g e
Prospect theory explains some
state of mind affecting an
individual decision making
process including regret aversion,
Loss aversion and mental
accounting (Waweru et
al., 2003, p.116)
c) Market factors such as
price changes, market
information, fundamentals of
underlying stocks, customer
preference, over reaction to
price changes and
fundamentals of underlying
stocks have an impact on
investor’s decision making.

45 | P a g e
(Waren et al., 2008, p.36).
Normally changes in the
market information,
fundamentals of underlying
stock and stock price cause
over reaction and under
reaction to the price change.
These changes are empirically
proven to have high
influence on decision making
behavior of investors.
d) Herding effect in financial
market is identified as tendency
to investor’s behaviors to
follow other’s reactions. In the
perspective of behavior, herding
can cause some

46 | P a g e
emotional biases, including
conformity, congruity and
cognitive conflict, the home
bias and gossip. Investors may
prefer herding if they believe that
herding can help
them to extract useful and reliable
information (Le Phuoc Luong &
Doan R.Hedtroim,
2011, p.21).
Behavioral factors influencing the
investment decision making
(source: Waweru
et al.,2008)
Group Behavioral variables
Heuristic theory
Representativeness,
Overconfidence,

47 | P a g e
Anchoring, Gambler’s fallacy,
Availability
bias.
Prospect theory Loss aversion,
Regret aversion, Mental
accounting.
Market factors Price changes,
Market information, Past
trends of stocks, Fundamentals of
underlying stocks, customer
preference,
over reaction to price changes.
Herding effect Buying and selling
decisions of other
investors, choice of stocks to
trade of
other investors, Volume of stocks
to

48 | P a g e
trade of other investors, Speed of
herding.
As mentioned in the literature
review, it is undoubtedly that
behavioral factors impact
the investment decisions of the
investors in the financial markets,
especially in the
stock markets. This study
explores the influence levels of
behavioral variables on the
individual investors’ decisions
and their investment performance
as in the following
hypothesis.
Hypothesis H1: The behavioral
variables that influence the
investment decisions of

49 | P a g e
individuals are grouped into
four factors as the reviewed
theories: Heuristics,
Prospect, Market, and Herding.
This hypothesis is tested by
synthesizing the respondent’s
evaluations of the
influence degrees of behavioral
factors on investment decisions.
behavioral finance is based
on psychology which suggest
that
human decision process are
subject to several cognitive
illusions and biases. These
illusions are divide into four
groups: Heuristics factors,
Prospect factors, Herding factors

50 | P a g e
and market factors.
a) Heuristics are defined as a
rule of thumb, which makes
decision making easier
especially in complex and
uncertain environments (Ritter,
2003, p.431) by reducing
the complexities of assessing
probabilities and predicting
values to simpler
judgements (Kahneman &
Tversky, 1974, p.1124).
Kahneman and Tversky seems to
be ones of the first writers
studying the factors belonging
to heuristics when

51 | P a g e
introducing three factors namely
Representativeness, Availability
bias and anchoring
(Kahneman & Tversky, 1974,
p.1124-1131). Waweru et al. also
list two factors named
gamblers fallacy and
overconfidence into heuristic
theory (Waweru et al., 2008,
p.27)
b) Prospect theory and
Expected utility theory (EUT)
are considered as two
approaches to decision making
from different perspectives.
Prospect theory focuses

52 | P a g e
on subjective decision making
influenced by investors value
system, whereas EUT
concentrates on investors rational
expectations (Filbeck, Hatfiels &
Horvath, 2005,
p.170-171). EUT is the normative
model of rational choice and
descriptive model of
economic behavior, which
dominates the analysis of
decision making under risk.
Nonetheless, this theory is
criticized for failing to explain
why people are attracted to
both insurance and gambling (Le
Phuoc Luong & Doan
R.Hedtroim, 2011, p.19).

53 | P a g e
Prospect theory explains some
state of mind affecting an
individual decision making
process including regret aversion,
Loss aversion and mental
accounting (Waweru et
al., 2003, p.116)
c) Market factors such as
price changes, market
information, fundamentals of
underlying stocks, customer
preference, over reaction to
price changes and
fundamentals of underlying
stocks have an impact on
investor’s decision making.

54 | P a g e
(Waren et al., 2008, p.36).
Normally changes in the
market information,
fundamentals of underlying
stock and stock price cause
over reaction and under
reaction to the price change.
These changes are empirically
proven to have high
influence on decision making
behavior of investors.
d) Herding effect in financial
market is identified as tendency
to investor’s behaviors to
follow other’s reactions. In the
perspective of behavior, herding
can cause some

55 | P a g e
emotional biases, including
conformity, congruity and
cognitive conflict, the home
bias and gossip. Investors may
prefer herding if they believe that
herding can help
them to extract useful and reliable
information (Le Phuoc Luong &
Doan R.Hedtroim,
2011, p.21).
Behavioral factors influencing the
investment decision making
(source: Waweru
et al.,2008)
Group Behavioral variables
Heuristic theory
Representativeness,
Overconfidence,

56 | P a g e
Anchoring, Gambler’s fallacy,
Availability
bias.
Prospect theory Loss aversion,
Regret aversion, Mental
accounting.
Market factors Price changes,
Market information, Past
trends of stocks, Fundamentals of
underlying stocks, customer
preference,
over reaction to price changes.
Herding effect Buying and selling
decisions of other
investors, choice of stocks to
trade of
other investors, Volume of stocks
to

57 | P a g e
trade of other investors, Speed of
herding.
As mentioned in the literature
review, it is undoubtedly that
behavioral factors impact
the investment decisions of the
investors in the financial markets,
especially in the
stock markets. This study
explores the influence levels of
behavioral variables on the
individual investors’ decisions
and their investment performance
as in the following
hypothesis.
Hypothesis H1: The behavioral
variables that influence the
investment decisions of

58 | P a g e
individuals are grouped into
four factors as the reviewed
theories: Heuristics,
Prospect, Market, and Herding.
This hypothesis is tested by
synthesizing the respondent’s
evaluations of the
influence degrees of behavioral
factors on investment decisions.
behavioral finance is based
on psychology which suggest
that
human decision process are
subject to several cognitive
illusions and biases. These
illusions are divide into four
groups: Heuristics factors,
Prospect factors, Herding factors

59 | P a g e
and market factors.
a) Heuristics are defined as a
rule of thumb, which makes
decision making easier
especially in complex and
uncertain environments (Ritter,
2003, p.431) by reducing
the complexities of assessing
probabilities and predicting
values to simpler
judgements (Kahneman &
Tversky, 1974, p.1124).
Kahneman and Tversky seems to
be ones of the first writers
studying the factors belonging
to heuristics when

60 | P a g e
introducing three factors namely
Representativeness, Availability
bias and anchoring
(Kahneman & Tversky, 1974,
p.1124-1131). Waweru et al. also
list two factors named
gamblers fallacy and
overconfidence into heuristic
theory (Waweru et al., 2008,
p.27)
b) Prospect theory and
Expected utility theory (EUT)
are considered as two
approaches to decision making
from different perspectives.
Prospect theory focuses

61 | P a g e
on subjective decision making
influenced by investors value
system, whereas EUT
concentrates on investors rational
expectations (Filbeck, Hatfiels &
Horvath, 2005,
p.170-171). EUT is the normative
model of rational choice and
descriptive model of
economic behavior, which
dominates the analysis of
decision making under risk.
Nonetheless, this theory is
criticized for failing to explain
why people are attracted to
both insurance and gambling (Le
Phuoc Luong & Doan
R.Hedtroim, 2011, p.19).

62 | P a g e
Prospect theory explains some
state of mind affecting an
individual decision making
process including regret aversion,
Loss aversion and mental
accounting (Waweru et
al., 2003, p.116)
c) Market factors such as
price changes, market
information, fundamentals of
underlying stocks, customer
preference, over reaction to
price changes and
fundamentals of underlying
stocks have an impact on
investor’s decision making.

63 | P a g e
(Waren et al., 2008, p.36).
Normally changes in the
market information,
fundamentals of underlying
stock and stock price cause
over reaction and under
reaction to the price change.
These changes are empirically
proven to have high
influence on decision making
behavior of investors.
d) Herding effect in financial
market is identified as tendency
to investor’s behaviors to
follow other’s reactions. In the
perspective of behavior, herding
can cause some

64 | P a g e
emotional biases, including
conformity, congruity and
cognitive conflict, the home
bias and gossip. Investors may
prefer herding if they believe that
herding can help
them to extract useful and reliable
information (Le Phuoc Luong &
Doan R.Hedtroim,
2011, p.21).
Behavioral factors influencing the
investment decision making
(source: Waweru
et al.,2008)
Group Behavioral variables
Heuristic theory
Representativeness,
Overconfidence,

65 | P a g e
Anchoring, Gambler’s fallacy,
Availability
bias.
Prospect theory Loss aversion,
Regret aversion, Mental
accounting.
Market factors Price changes,
Market information, Past
trends of stocks, Fundamentals of
underlying stocks, customer
preference,
over reaction to price changes.
Herding effect Buying and selling
decisions of other
investors, choice of stocks to
trade of
other investors, Volume of stocks
to

66 | P a g e
trade of other investors, Speed of
herding.
As mentioned in the literature
review, it is undoubtedly that
behavioral factors impact
the investment decisions of the
investors in the financial markets,
especially in the
stock markets. This study
explores the influence levels of
behavioral variables on the
individual investors’ decisions
and their investment performance
as in the following
hypothesis.
Hypothesis H1: The behavioral
variables that influence the
investment decisions of

67 | P a g e
individuals are grouped into
four factors as the reviewed
theories: Heuristics,
Prospect, Market, and Herding.
This hypothesis is tested by
synthesizing the respondent’s
evaluations of the
influence degrees of behavioral
factors on investment decisions.
behavioral finance is based
on psychology which suggest
that
human decision process are
subject to several cognitive
illusions and biases. These
illusions are divide into four
groups: Heuristics factors,
Prospect factors, Herding factors

68 | P a g e
and market factors.
a) Heuristics are defined as a
rule of thumb, which makes
decision making easier
especially in complex and
uncertain environments (Ritter,
2003, p.431) by reducing
the complexities of assessing
probabilities and predicting
values to simpler
judgements (Kahneman &
Tversky, 1974, p.1124).
Kahneman and Tversky seems to
be ones of the first writers
studying the factors belonging
to heuristics when

69 | P a g e
introducing three factors namely
Representativeness, Availability
bias and anchoring
(Kahneman & Tversky, 1974,
p.1124-1131). Waweru et al. also
list two factors named
gamblers fallacy and
overconfidence into heuristic
theory (Waweru et al., 2008,
p.27)
b) Prospect theory and
Expected utility theory (EUT)
are considered as two
approaches to decision making
from different perspectives.
Prospect theory focuses

70 | P a g e
on subjective decision making
influenced by investors value
system, whereas EUT
concentrates on investors rational
expectations (Filbeck, Hatfiels &
Horvath, 2005,
p.170-171). EUT is the normative
model of rational choice and
descriptive model of
economic behavior, which
dominates the analysis of
decision making under risk.
Nonetheless, this theory is
criticized for failing to explain
why people are attracted to
both insurance and gambling (Le
Phuoc Luong & Doan
R.Hedtroim, 2011, p.19).

71 | P a g e
Prospect theory explains some
state of mind affecting an
individual decision making
process including regret aversion,
Loss aversion and mental
accounting (Waweru et
al., 2003, p.116)
c) Market factors such as
price changes, market
information, fundamentals of
underlying stocks, customer
preference, over reaction to
price changes and
fundamentals of underlying
stocks have an impact on
investor’s decision making.

72 | P a g e
(Waren et al., 2008, p.36).
Normally changes in the
market information,
fundamentals of underlying
stock and stock price cause
over reaction and under
reaction to the price change.
These changes are empirically
proven to have high
influence on decision making
behavior of investors.
d) Herding effect in financial
market is identified as tendency
to investor’s behaviors to
follow other’s reactions. In the
perspective of behavior, herding
can cause some

73 | P a g e
emotional biases, including
conformity, congruity and
cognitive conflict, the home
bias and gossip. Investors may
prefer herding if they believe that
herding can help
them to extract useful and reliable
information (Le Phuoc Luong &
Doan R.Hedtroim,
2011, p.21).
Behavioral factors influencing the
investment decision making
(source: Waweru
et al.,2008)
Group Behavioral variables
Heuristic theory
Representativeness,
Overconfidence,

74 | P a g e
Anchoring, Gambler’s fallacy,
Availability
bias.
Prospect theory Loss aversion,
Regret aversion, Mental
accounting.
Market factors Price changes,
Market information, Past
trends of stocks, Fundamentals of
underlying stocks, customer
preference,
over reaction to price changes.
Herding effect Buying and selling
decisions of other
investors, choice of stocks to
trade of
other investors, Volume of stocks
to

75 | P a g e
trade of other investors, Speed of
herding.
As mentioned in the literature
review, it is undoubtedly that
behavioral factors impact
the investment decisions of the
investors in the financial markets,
especially in the
stock markets. This study
explores the influence levels of
behavioral variables on the
individual investors’ decisions
and their investment performance
as in the following
hypothesis.
Hypothesis H1: The behavioral
variables that influence the
investment decisions of

76 | P a g e
individuals are grouped into
four factors as the reviewed
theories: Heuristics,
Prospect, Market, and Herding.
This hypothesis is tested by
synthesizing the respondent’s
evaluations of the
influence degrees of behavioral
factors on investment decisions.
The traditional finance stands
on the foundation that
humans are homo-economicus.
Which is based on the belief that
human are rational in decision
making. But empirical
evidence shows a fact that people
are not always rational, their
financial decisions may

77 | P a g e
be driven by behavioral
preconceptions. Thus studying
investor behavior becomes vital
in the fields of finance and
marketing to explore the factors
and its impacts on buyer’s
decisions on purchase and sales
of securities. In case if the
decisions of investors does
not falls with rationality, effects
of behavioral biases should be
identified. It will be more
important if their cognitive errors
affect prices and are not
arbitraged away easily (Kim &
Nofsinger, 2008, p.2). The mid
1980’s is considered as the
beginning of this research

78 | P a g e
area. Share markets are proved to
overreact to information by
Debondt & Thaler (1985,
p.392-393). If these studies are
the genesis of behavioral finance,
this area has over two
decades of development

79 | P a g e
80 | P a g e
 LITERATURE REVIEW

The foundation of traditional finance is built on the assumption that

humans are homo-economicus, meaning that they are rational in their
decision-making. However, empirical evidence has shown that people
are not always rational and their financial decisions can be influenced by
behavioral biases. Therefore, it is crucial to study investor behavior in
the fields of finance and marketing in order to understand the factors
that impact their decisions on buying and selling securities. If investors'
decisions are not rational, it is important to identify the effects of
behavioral biases, especially if these biases affect prices and cannot be
easily arbitraged away. The research area of behavioral finance began in
the mid-1980s and studies have shown that stock markets tend to
overreact to information. These studies have challenged the traditional
theories of market efficiency and asset pricing models. Behavioral
finance is based on psychology and suggests that human decision
LITERATURE REVIEW
processes are influenced by cognitive illusions and biases. These illusions
can be categorized into four groups: heuristics factors, prospect factors,
herding factors, and market factors.
I. Heuristics are defined as a rule of thumb, which makes decision
making easier especially in complex and uncertain environments
(Ritter, 2003, p.431) by reducing the complexities of assessing
probabilities and predicting values to simpler judgements (Kahneman
& Tversky, 1974, p.1124). Kahneman and Tversky seems to be ones of
the first writers studying the factors belonging to heuristics when
introducing three factors namely Representativeness, Availability bias
and anchoring (Kahneman & Tversky, 1974, p.1124-1131). Waweru et
al. also list two factors named gamblers fallacy and overconfidence
into heuristic theory (Waweru et al., 2008, p.27)
II. Prospect theory and Expected utility theory (EUT) are
considered as two approaches to decision making from different
perspectives. Prospect theory focuses on subjective decision making
influenced by investors value system, whereas EUT concentrates on

81 | P a g e
 investors rational expectations (Filbeck, Hatfiels & Horvath, 2005,
p.170-171). EUT is the normative model of rational choice and
descriptive model of economic behaviour, which dominates the
analysis of decision making under risk. Nonetheless, this theory is
criticized for failing to explain why people are attracted to both
insurance and gambling (Le Phuoc Luong & Doan R.Hedtroim, 2011,
p.19). Prospect theory explains some state of mind affecting an
individual decision making process including regret aversion, Loss
aversion and mental accounting (Waweru et al., 2003, p.116)
III. Market factors such as price changes, market information,
fundamentals of underlying stocks, customer preference, over
reaction to price changes and fundamentals of underlying stocks
have an impact on investor’s decision making. (Waren et al., 2008,
p.36). Normally changes in the market information, fundamentals of
underlying stock and stock price cause over reaction and under
reaction to the price change. These changes are empirically proven to
have high influence on decision making behaviour of investors.
I. Herding effect in financial market is identified as tendency to
investor’s behaviours to follow other’s reactions. In the perspective
of behaviour, herding can cause some emotional biases, including
conformity, congruity and cognitive conflict, the home bias and
gossip. Investors may prefer herding if they believe that herding can
help them to extract useful and reliable information (Le Phuoc Luong
& Doan R.Hedtroim, 2011, p.21).

82 | P a g e
Behavioral factors influencing the investment
decision making (source: Waweru et al.,2008)

Group Behavioral variables

Heuristic theory Representativeness,
Overconfidence, Anchoring,
Gambler’s fallacy, Availability
bias.
Prospect theory Loss aversion, Regret aversion,
Mental accounting.
Market factors Price changes, Market
information, Past trends of
stocks, Fundamentals of
underlying stocks, customer
preference, over reaction to price
changes.
Herding effect Buying and selling decisions of
other investors, choice of stocks
to trade of other investors,
Volume of stocks to trade of
other investors, Speed of herding.

As mentioned in the literature review, it is undoubtedly that

behavioral factors impact the investment decisions of the investors in
the financial markets, especially in the stock markets. This study
explores the influence levels of behavioral variables on the individual
investors’ decisions and their investment performance as in the
following hypothesis.

Hypothesis H1: The behavioral variables that influence

the investment decisions of individuals are grouped into four
factors as the reviewed theories: Heuristics, Prospect,
Market, and Herding.

83 | P a g e
This hypothesis is tested by synthesizing the respondent’s
evaluations of the influence degrees of behavioural factors
on investment decisions.

84 | P a g e
DATA ANALYSIS AND
INTERPURATION

85 | P a g e
NOW WE WILL MOVE TOWARDS THE NEXT THING THAT I DO A
SURVAY ON THIS TOPICK AS UNDER?
IN THIS TOPICK “CONSUMER BEHAVIOUR ON THE SHARE MARKET” I
MADE A QUESTION RELATED TO THE SHARE MARKET AND THIS ALL
ARE A QUESTION THAT WHO IS HAD AN INFORMATION ABOUT THE
SHARE MARKET ONLY OR WHO IS HAVE A INTEREST IN THE SHARE
MAEKET.
I MADE A GOOGAL FORM AND THEN I WILL SURCULATE IN THE
SOME GROUP AND THE FRIENDS AND SOME OTHER PERSON ALSO.
IN THIS WE USE A QUESTION IN A MCQ FORM AND A MULTIPLE
CHOISE QUESTION ALSO.

WHAT IS an AGE OF THE PERSON THAT HE IS FILLING THIS FORM?

Mostly in my research there is a too many peoples of the 22 age was

there and it is a very good for the country growth because when this
types of the people are doing a investing in a share market so that it
will help to country to get a new job and many more things.
But I my case there is a too many responded in this year’s only but I
will give the option of the other years and that all get the support but

86 | P a g e
the 22 age is having a too many response and other is 21 age is get
the vote from my side.

My Second question is a what is a gender of the

peoples who is giving the response?
The gender is play an a too much important role in the
any filed and it is having his own value in the any place.
In this I will get no one is a girl and other responds but
only is of the responds of the boys only.

87 | P a g e
What is your occupation?

In this most of the peoples that are given response that

all are a students and it is a very good sign of the
country growth.
What happens if a stock is not listed?

In this I am give them a 4 option that all you can see

and this all take place a so much important role.
The 50% answer is go to the blue option that is a first
one answer it is a it can only trade as a NASDAQ stock.

88 | P a g e
The second highest answer is going to the two option
that both are a second and the third option that both is
have a highest vote in this all.

What is the function of the market market?

In this there are a two option that are a very much

used that are a third and the second option and that
both are a very much important.
Both option is get an equal responses and both is
saying a some of the words that are used in the correct
way and both are use in market.
But the one word is change the meaning and that is
happened.

89 | P a g e
The responses get in this question is first is got 50%
and third is also got the 50%.

A financial professional who assists investors in the

secondary market by providing access to the
exchanges?

in this we will see that the ratio of the CFO is the very
high and it will help us to do the work in life and it is a
very good for the peoples.

90 | P a g e
The highest vote is given by the peoples is to the CFO
and it is a 60.4% and it is a too much amount of the
vote.
The second highest vote is given to the market to
market and it is having a 38.1% of peoples are tick this
as an answer and it is a very much good choice.
The third position goes to the broker and the
investment banker both are on the equal votes.

A stock exchange on which all trades are electronic

(there is no physical place where trading takes place)?

In this there is a lot of the people is chose the answer it

is a SEC and it is a very much bad decision and this is a
very much negative thinking of the peoples and it will
take too much loss to the peoples.

91 | P a g e
In this the maximum peoples are take the vote to the
SCE that is the 97% and that’s why I am calling that
they are barring a huge loss.

Which exchange lists a large number of technology

companies?

In this you can see that the exchange lists a largest

number of the technology companies in this the
answer is taken by the people is totally wrong and it is
seen that the too much people are not knowing about
the share market.
In this the answer is taken by the people is a NASDAQ it
is a 97.8% of the peoples are select this answer.
The second place is gone towards the NYSE it is like the
2% of the total of the hundred percentage.

92 | P a g e
The total of the 0.2% of the people are select the
answer is a SCE and this is a very much good response
of the people towards the society.

In which bank do you have account?

In this question I have a motive to ask to this question

is nothing but the people mentality toward the bank. In
this I have choose the four banks some are a
governments and some are privates.
In this the answer is given by the peoples are the ICICI
bank and it is a very good answer because the too
many facility was given in the private banks and that’s
why the people has selected the ICICI bank.

93 | P a g e
The second bank which is selected that is a PND bank
and it is a very much good choice because from this we
can easily see that the peoples are too much active and
it is good for society.
The third bank is the two banks and they are the SBI
and HDFCbank in this the SBI bank is the government
bank and in this too many facility is given to us so that
the peoples are selected this bank.
What is your motive behind investment?

This is very much basic question that the too many

peoples are there in mind and in this I had chosen the
four option and that are the saving, tax saving, futures
perspective and other all are the good answer and all
are have their different meaning.
In this voting the first place goes to the tax saving and
it is having a 97.7% of the votes and it is a one side
wine in this series. It is good answer and it is having a

94 | P a g e
different meaning in their own and it will have their
own logic regarding the investing.
The second place goes to the saving and it will have a
2% of the part of the answer and it will help to the
people to grow in the market. It is a very much good
decision because when people will invest their money
in the market for the long term so that it will give the
too much return.
In which company do you have a demit account?

In this we had taken the four different types of the way

from which the demit account has been open and
there are the some of the big company and some of
the big banks also.
In this majority of the peoples are take the answer of
the motilal oswal it is a very good decision and it is a
very much big brand in the share market. In this the

95 | P a g e
people are take the 60.9% of the people are prefers
the motilal oswal for doing trading.
The second position goes to the ICICI bank and it is a
very much good decision because in the ICICI bank the
too much facility was having been given to the
customer and it is having a too many benefit with the
ICICI bank.

what is your risk tolerance capacity?

n

In this I am research about the person risk tolerance

capacity and it is plays a very important role. From this
we can easily identify the person goal and it will help to
the companies.

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From this you can easily understand that the maximum
people is take the risk of the 10000 to 20000 and that
is the valid and it is seen in the India that the people is
taker the minimum risk and it is good for the economy.
In this research0 or survey you can easily see that the
people is take the 61.7% space from the handed
percentage.
In this the people is take only to plays only that is a
hero or zero it means that the people is a rich or the
middle class person.
So the second option is the 50000 to 100000 rupees
and it is shows the richness of the people.

Are you satisfied with your investments so far?

There are a too many people is satisfied with the

investment and the 62.4% of the people are ready to
move with there investment.

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So that the schuss rate of the share market is the 60%
and it is good and is a positive sign towards the future.

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FINDING

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 FINDINGS WHILE DOING THE SIP

Stock Market Overview:

Primary and Secondary Markets: The distinction

between primary and secondary markets is well-
explained. Primary markets involve the issuance of new
securities, while secondary markets involve the trading
of previously issued securities.

Stock Exchanges in India:

You list several stock exchanges in India, including BSE,
NSE, CSE, India INX, Metropolitan Stock Exchange, and
NSE International Exchange.

Algorithmic Trading:
Motilal Oswal offers algorithmic trading with AI
capabilities, providing advanced analytics, real-time
market data, and automated trading strategies.

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Trade Guide Signal (TGS):
Motilal Oswal's Trade Guide Signal is an algorithmic
trading tool that generates buy/sell ideas based on
predetermined technical rules, providing real-time SMS
notifications.

SWOT Analysis of Motilal Oswal Financial Services:

Strengths:
Diverse financial products, strong execution of trades,
private equity division, and an extensive network of
offices.

Weaknesses:
Limited product portfolio, lack of geographical
diversification, and relatively low brand awareness.

Opportunities:
Growth in the rural market, urban youth seeking
investment opportunities.

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Threats:
Stringent economic measures by the government and
RBI, entry of foreign financial firms.

Consumer Behaviour and Share Market:

Consumer Behaviour:
Described as the actions and decisions of individuals or
households in selecting, purchasing, using, and
disposing of products or services. It involves
psychological, sociological, and cultural factors.

Share Market:
Defined as a collective term for exchanges where
publicly held company shares are traded. Highlighted
as a key component of a free-market economy,
providing democratized access to investor trading.
Key Implications:

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Motilal Oswal's Competitive Position:
The SWOT analysis indicates Motilal Oswal's strengths,
weaknesses, opportunities, and threats. Leveraging
strengths and addressing weaknesses is crucial for
maintaining and improving its competitive edge.

Algorithmic Trading as a Valuable Tool:

Motilal Oswal's algorithmic trading tools, including AI
capabilities and Trade Guide Signal, are positioned as
valuable tools for investors seeking to optimize their
trading strategies.

Interconnection of Consumer Behavior and Stock

Market:
Recognizing the interconnection between consumer
behavior and the stock market is crucial.
Understanding consumer behavior helps companies
create effective marketing plans and provide products
and services aligned with customer needs.

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Regulatory Environment:
The safety of investments in the stock market is
highlighted, emphasizing the role of regulatory bodies
like the SEC in ensuring market integrity.

Recommendations:

Address Weaknesses:
Motilal Oswal should focus on addressing weaknesses,
such as limited product portfolio and low brand
awareness, to enhance its market position.

Capitalizing on Opportunities:
Leveraging opportunities like the growth in the rural
market and the interest of urban youth in investment
can contribute to business expansion.

Customer Education:
Given the interconnection between consumer
behaviour and the stock market, initiatives to educate
consumers about investment opportunities and market
dynamics can be beneficial.

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Overall, the findings suggest a comprehensive
understanding of the stock market, Motilal Oswal's
position, and the importance of aligning with consumer
behavior trends for sustained success.

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