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The project entitled Comparative analysis of finance and banking equity stocks is about doing analysis on stocks and suggesting the investor in making a decision to buy, sell or hold. The project consists of two types of analysis. . !undamental "nalysis #. Technical "nalysis !undamental analysis consists of economy analysis, industry analysis and company analysis. $conomy analysis includes economic factors like %&', inflation rates, interest rates, e(change rates. )ndustry analysis consists of analysis of industry recent developments in the industry etc. Company analysis includes analy*ing the company+s ratios etc. Technical analysis mainly consists of charts, graphs etc. )t takes the closing prices and plots the graphs. )t is mainly used for short term purpose. The project contains si( banking and finance stocks namely, ICICI Bank, HDFC Bank, Axis Bank, Infrastructure Development Finance Company Ltd (IDFC Ltd), a!indra " a!indra Finance Ltd and Housin# Development Finance Corporation Ltd$ (HDFCL)$ The analysis is done on these si( stocks to determine which one is better for investor. !or each stock based upon the ratios ) have recommended which stock to buy. ,ome investors look for sales of a company, some may look for dividend payout ratio. )t again depends on investor. -ased upon the ratios he can choose which stock to invest. "t the end conclusion and recommendations have been specified so as to make the project work more meaningful and purposeful.
INTRODUCTION
)ndia is a developing country. .owadays many people are interested to invest in financial markets especially on equities to get high returns, and to save ta( in honest way. $quities are playing a major role in contribution of capital to the business from the beginning. ,ince the introduction of shares concept, large numbers of investors are showing interest to invest in stock market. )n an industry plagued with skepticism and a stock market increasingly difficult to predict and contend with, if one looks hard enough there may still be a genuine aid for the &ay Trader and ,hort Term )nvestor. The price of a security represents a consensus. )t is the price at which one person agrees to buy and another agrees to sell. The price at which an investor is willing to buy or sell depends primarily on his e(pectations. )f he e(pects the security/s price to rise, he will buy it0 if the investor e(pects the price to fall, he will sell it. These simple statements are the cause of a major challenge in forecasting security prices, because they refer to human e(pectations. "s we all know firsthand, humans e(pectations are neither easily quantifiable nor predictable. )f prices are based on investor e(pectations, then knowing what a security should sell for 1i.e., fundamental analysis2 becomes less important than knowing what other investors e(pect it to sell for. That/s not to say that knowing what a security should sell for isn/t important33it is. -ut there is usually a fairly strong consensus of a stock/s future earnings that the average investor cannot disprove !undamental analysis and technical analysis can co3e(ist in peace and complement each other. ,ince all the investors in the stock market want to make the ma(imum profits possible, they just cannot afford to ignore either fundamental or technical analysis.
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RESEARCH METHODOLOGY
<esearch design or research methodology is the procedure of collecting, analy*ing and interpreting the data to diagnose the problem and react to the opportunity in such a way where the costs can be minimi*ed and the desired level of accuracy can be achieved to arrive at a particular conclusion. The methodology used in the study for the completion of the project and the fulfillment of the project objectives. The sample of the stocks for the purpose of collecting secondary data has been selected on the basis of <andom ,ampling. The stocks are chosen in an unbiased manner and each stock is chosen independent of the other stocks chosen. The stocks are chosen from the automobile sector. The sample si*e for the number of stocks is taken as three for fundamental analysis of stocks as fundamental analysis is very e(haustive and requires detailed study. *esearc! Findin#s: Considerable amount of time was spent to collate the findings of the research. The findings had to be stated. Interpretation% )nterpretation refers to the task of drawing inference from the colleted facts after an analytical study, in fact it is a search for broader meaning of research findings it is through interpretation that the researcher can well understand the abstract principle that respondents beneath his findings. The simple statistical tool will be used to analy*e the data collection, and bar graphs and pie charts have been used to illustrate the findings diagrammatically.
LIMITATIONS
$very study has its own limitations in terms of methodology and available resources for its conduct. This study was not an e(ception and was carried out under the following limitations5 This study has been conducted purely to understand $quity analysis for investors. The study is restricted to si( companies, i.e. )C)C) -ank, 8&!C -ank, "(is
-ank, )&!C 9td, :ahindra 7 :ahindra !inance and 8&!C9, based on !undamental analysis. The study is limited to the companies having equities. &etailed study of the topic was not possible due to limited si*e of the project. There was a constraint with regard to time allocation for the research study i.e. for a period of ;= days. Topic is vast but availability of information and timeline is short. ,uggestions and conclusions are based on the limited data of five years.