EQUITY RESEARCH ON BANK STOCKS OF

ICICI BANK & HDFC BANK.

INTRODUCTION

Investment is like marriage , in which we should not enter lightly. If investing in

equity gives us higher returns at the same time we must understand that it can be
vice versa to us . So before investing into any companys stock a proper research
may help to reduce most of the risk.

EQUITY - A stock or any other security representing an ownership interest.

There are many scrips in BSE & NSE from which we could choose any scrips to
invest our money into it . The bottom line of every investment plan is get more
returns than the amount what we have invested . It has been said that if proper
research is done on stocks major chances are that we would not loose our money
unless something happens unpredictable Eg- STAYAM COMPANY CASE
WHICH BROUGHT THE ENTIRE STOCK MARKET DOWN.

There are two ways in which equity research can be done .

1) TECHNICAL ANALYSIS.
2) FUNDAMENTAL ANALYSIS.
Technical analysis is method of predicting the price movements and future market
trend by studying the charts of past market action which takes into account price of
financial instrument .

Fundamental Analysis is method of forecasting the future price movements of

financial instruments based on ECONOMIC , POLITICAL ,ENVIOURMENTAL
AND OTHER RELEVENT FACTORS and statics that will affect the basic supply
and demand of underlying financial instruments.
OBJECTIVE OF STUDY-

PRIMARY OBJECTIVE OF THE STUDY-

To do Equity research on bank stocks of ICICI BANK & HDFC BANK.

SUB-OBJECTIVE –

1) To understand how equity research is done on banking stocks.

2) Different parameters on which equity research is done.

3) To understand what all parameters should be seen before investing into

banking stocks.

4) Analysis of stocks by comparing with different banking stocks.

5) To understand the movement and performance of stocks.

6) To recommend increase or decrease of investment in particular stocks.

RESEARCH METHODOLOGY

TYPE OF STUDY-

The research has been done on secondary data analysis . The study has been
exploratory as it aims at examining the secondary data for analyzing the previous
research that has been done that has been done in the area of technical and
fundamental analysis of stocks. The knowledge gained from this preliminary
forms the further detailed dicriptive research .

SAMPLE DESIGN –

The sample of the stocks for the purpose of collecting secondry data has been
collected on the basis of random sampling . The stocks are chosen on unbiased
manner and each stock is chosen independent of other stock chosen. The stocks
are chosen on BANKING SECTOR.

SAMPLE SIZE -
Sample size of number stocks to be taken are 1 of each ICICI BANK & HDFC
BANK for technical and fundamental analysis as FUNDAMENTAL ANALYSIS
is very exhaustive and needs a detailed description.

As FUNDAMENTAL ANALYSIS COVERS .

1 Ratio Analysis

2 News

3Chairman’s communications and directors report

4 Balance Sheet Review

Chapterization

1) Introduction to Equity Research

2) Research methodology & Design
3) Technical Analysis overview
4) Fundamental Analysis overview
5) Banking Sector
Banking in India
Current Scenario
Future outlook
Banking Structure
6) Analysis
ICICI BANK ANALYSIS
 HDFC BANK ANALYSIS

7) Findings & Conclusion

8) Biblography

Limitations Of Study –

• Equity Research cannot be 100% correct.

• Different assumptions by different analyst.

• Unperdictable market behavior.

• Changing government policies.

• Unpredictable foreign investments in india.

Biblography-

Website Refferred

WWW.MONEYCONTROL.COM

WWW.MYIRIS.COM

WWW.WEIKIPEDIA.COM

WWW.HDFCBANK.COM

WWW.ICICIBANK.COM

WWW.INVESTOPEDIA.COM

Books Refferred

NCFM module notes.

How to do equity research.

How to make money from stocks.