ECONOMIC ANALYSIS INDUSTRY ANALYSIS

COMPANY ANALYSIS

THE ANALYSIS OF MACRO ECONOMIC ENVIRONMENT IS ESSENTIAL TO UNDERSTAND THE BEHAVIOUR OF THE STOCK PRICES.

GDP

INFLATION

INT.RATES

THE TAX STRUCTURE

BALANCE OF PAYMENT SAVINGS AND INVESTMENT INFRASTRUCTURE FACILITIES

MONSOON AND AGRICULTURE DEMOGRAPHIC FACTORS

BUDGET

AN INDUSTRY IS A GROUP OF FIRMS THAT HAVE SIMILAR TECHNOLOGICAL STRUCTURE OF PRODUCTION AND PRODUCE SIMILAR PRODUCTS.

CYCLICAL GROWTH DEFENSIVE

CYCLICAL GROWTH

THESE INDUSTRIES HAVE SPECIAL FEATURE S OF HIGH RATE OF EARNINGS AND GROWTH IN EXPANSION,INDEPENDENT OF THE BUSINESS CYCLE. EXAMPLE: DURING 1997-98 THE RECESSION PERIOD THERE WAS A SPURT IN THE GROWTH OF INFORMATION TECHNOLOGY INDUSTRY.

THE GROWTH AND PROFITABILITY OF THE INDUSTRY MOVE ALONG WITH THE BUSINESS CYCLE. EXAMPLE: GOODS LIKE FRIDGE,WSHING MACHINE COMMAND A GOOD MARKET IN THE BOOM PERIOD.

THE STOCK OF DEFENSIVE INDUSTRIES CAN BE HELD BY THE INVESTOR FOR THE INCOME EARNING PURPOSE. EXAMPLE: FOOD INDUSTRY.

CYCLICAL

CYCLICAL GROWTH INDUSTRY

GROWTH

AUTOMOBILE INDUSTRY.

GROWTH OF INDUSTRY COST STRUCTURE AND PROFIT NATURE OF PRODUCT

COMPETITION
GOVT. POLICY LABOUR
RESEARCH AND DEVELOPMENT