Industry Internship Report on MASTER of BUSINESS
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Industry Internship Report on THE PERFORMANCE OF BSE SENSEX BY DINESH CS 1NH16MBA19 Submitted to DEPARTMENT OF MANAGEMENT STUDIES NEW HORIZON COLLEGE OF ENGINEERING, OUTER RING ROAD, MARATHALLI, BANGALORE In partial fulfilment of the requirements for the award of the degree of MASTER OF BUSINESS ADMINISTRATION Under the guidance of INTERNAL GUIDE EXTERNAL GUIDE Dr. A.R Sainath Harish Kumar Professor Senior relationship Manager 2016-2018 CERTIFICATE This is to certify that DINESH C S bearing USN 1NH16MBA19, is abonafide student of Master of Business Administration course of the Institute 2016-2018, autonomous program, affiliated to Visvesvaraya Technological University, Belgaum. Internship report on “study on performance of BSE SENSEX” is prepared by him/her under the guidance of Dr A R Sainath, in partial fulfillment of requirements for the award of the degree of Master of Business Administration of Visvesvaraya Technological University, Belgaum Karnataka. Signature of Internal Guide Signature of HOD Signature of Principal DECLARATION I, DINESH C S, hereby declare that the Internship report entitled “study on performance OF BSE SENSEX” with reference to “(Organization with place)” prepared by me under the guidance of Dr A R SAINATH , faculty of M.B.A Department, New Horizon College of Engineering and external assistance by HARISH KUMAR L, way2wealth brokers pvt ltd. I also declare that this Internship work is towards the partial fulfillment of the university regulations for the award of the degree of Master of Business Administration by Visvesvaraya Technological University, Belgaum. I have undergone an industry internship for a period of Twelve weeks. I further declare that this report is based on the original study undertaken by me and has not been submitted for the award of a degree/diploma from any other University / Institution. Signature of Student Place: Date ACKNOWLEDGEMENT I take this opportunity to express my gratitude and profound thanks to our chairman DR. MOHAN MANGHNANI and our respected Principal DR. MANJUNATHA. I express my sincere thanks and deep sense of gratitude to our Head of Department and my Guide PROF A.R SAINATH, Department of Management Studies for providing me with an opportunity to study and for her encouragement, support and guidance to complete this project work successfully. The internship opportunity I had with “WAY 2 WEALTH PVT. LTD” was a great chance for learning and professional development. Therefore, I consider myself as a very lucky individual as I was provided with an opportunity to be a part of it. I am also grateful for having a chance to meet so many wonderful people and professionals who led me though this internship period. I express a deep sense of gratitude to my External Guide Harish Kumar L, Senior Relationship Manager for taking part in useful decision and giving necessary advices and guidance and arranged all facilities to make life easier. I choose this moment to acknowledge his contribution gratefully. Finally, I express my sincere thanks and deep sense of gratitude to my parents and friends for giving timely advice in all the ways and in all aspects for doing the project Name of the Student with USN DINESH C S 1NH16MBA19 Table of contents Chapters Study on performance of BSE sensex Page.no Executive summary 1 Theoretical background 1-23 2 Company and industry profile 24-40 3 Methodology 41-46 4 Data analysis and interpretation 47-51 5 Findings ,suggestion ,conclusion 52-53 Bibliography 55 List of tables Table no Particulars Page.no 1. Performance of bse sensex for the year 2013 47 quarterly basis 2. Performance of BSE sensex for the year 2014 48 quarterly basis 3. Performance of BSE sensex for the year 2015 49 quarterly basis 4. Performance of BSE sensex for the year 2016 50 quarterly basis 5. Performance of BSE sensex for the year 2017 51 quarterly Graph contents Graph Particulars Page .no no 1. Performance of bse sensex for the year 2013 quarterly 47 basis 2. Performance of BSE sensex for the year 2014 quarterly 48 basis 3. Performance of BSE sensex for the year 2015 quarterly 49 basis 4. Performance of BSE sensex for the year 2016 quarterly 50 basis 5. Performance of BSE sensex for the year 2017 quarterly 51 EXECUTIVE SUMMARY BSE sen-sex is the benchmark index of the Bombay Stock Exchange (BSE). This helps to know particular industry growth, development. BSE sen-sex is very volatile which means that we cannot predict the changes in the sen-sex prices. Change may be due to economic factors, industrial factors, company factors and market forces. To know causes for changes in BSE sen-sex To know the performance of BSE sen-sex To know positive returns from the stocks To know volatility of securities To analyse the best investment decision Methodologies adopted- secondary data is adopted and Microsoft excel is used as analytical tool Limitations- time constraints, Study is limited to BSE. 01 | P a g e CHAPTER 1 THEROITICAL BACKGROUND OF THE STUDY 1.1 Meaning of stock market A stock market is a private or public market for the trading of company stock and derivatives of company stock at an agreed price; both of these are securities listed on a stock exchange as well as those only traded privately. Trading Participants in the stock market range from small individual stock investors to large hedge fund traders, who can be based anywhere. Their orders usually end up with a professional at a stock exchange, who executes the order. Some exchanges are physical locations where transactions are carried out on a trading floor, by a method known as open outcry. This type of auction is used in stock exchanges and commodity exchanges where traders may enter "verbal" bids and offers simultaneously. The other type of exchange is a virtual kind, composed of a network of computers where trades are made electronically via traders. Actual trades are based on an auction market paradigm where a potential buyer bids a specific price for a stock and a potential seller asks a specific price for the stock. (Buying or selling at market means you will accept any ask price or bid price for the stock, respectively.) When the bid and ask prices match, a sale takes place on a first come first served basis if there are multiple bidders or askers at a given price. The India financial market is mainly divided into 2 parts, namely the capital market and the money market. The stock market is an important part of the capital market in the country through which one can carry out the transaction of capital. It is usually done through the means of direct financing through the use of security and investment. The investment market can further be sub divided into the primary and secondary market. 1.2 Features of the Primary market: In case of the primary market, the listed shares are traded for the first time which is transferred to the investors from the listed company. In case of the primary market, the stock issuers and the listed companies make use of the capital by offering the stocks to the investors. The investors, in turn, buy the shares and supply the needed capital. In simple 02 | P a g e terms, the primary market is a type of platform where new securities and stocks are dealt with. The primary market can be an ideal source of funding for various business enterprises and companies, public sector units and government organizations. All these organizations can make the funding by selling new bonds, stocks and other forms of securities. The buying and selling of the securities are done through dealers. The processes through which the new securities are sold to the investors are referred to as underwriting. On the other hand, if any new stock is issued to the investor, it is known as initial public offering (IPO). In most cases, Sthe dealers who carry out the process get a sum of money in the form of a commission. The terms and conditions of the commission are based on the price offering of the securities. 1.3 Features of secondary market: An important part of the India stock and investment market is the secondary market. In simple terms, it is also known as the stock market. Mainly it is a type of continuous market which offers a very good platform for trading and business of securities and stocks. In most cases, the trading is done through a licensed broker, stock and securities units, security firms and other financial institutions. The trading has to be done according to the terms and conditions that are set by the specific stock exchanges. 1.4 Stock market index The movements of the prices in a market or section of a market are captured in price indices called stock market indices, of which there are many, e.g., the S&P, the FTSE and the Euronext indices. Such indices are usually market capitalization (the total market value of floating capital of the company) weighted, with the weights reflecting the contribution of the stock to the index. The constituents of the index are reviewed frequently to include/exclude stocks in order to reflect the changing business environment. 1.5 FUNCTIONS OF STOCK EXCHANGE Maintain Active Trading: Shares are traded on the stock exchanges, enabling the investors to buy and sell securities. The prices may vary from transaction to transaction. Continuous trading increases the liquidity or marketability of the shares traded on the stock exchanges. 03 | P a g e Fixation of Price: price is determined by the transactions that flow from investors demand and the supplier‘s preferences. Usually the traded prices are made known to the public.