Bhavik Final Report

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    CHAPTER-I 1-6

    INTRODUCTION:

    NEED OF THE STUDY

    OBJECTIVE OF THE STUDY

    METHODOLOGY

    LIMITATIONS

    CHAPTER-II 7-42

    COMPANY PROFILE

    CHAPTER-III 43-86

    DATA ANALYSIS

    CEMENT INDUSTRY

    STEEL INDUSTRY

    CHAPTER-IV 87-115

    Annexure of Different Company

    CHAPTER-V 115-123

    SUGESSIONSFINDINGS & CONCLUSIONBIBILIOGRAPHY

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    ABSTRACT

    The project entitled Equity Analysis and Share Price Movement of four different

    Indian industries is basically useful for the investors who invest in the stocks in

    share market.

    The findings of this study help an investor to evaluate a particular companys

    performance in the industry and its share price movement in the market by using

    simple techniques of Fundamental and Technical Analysis.

    This analysis is done because the security (share) prices in an effective capital

    market fully reflect their investment value as the market has the capability to

    instantaneously impound the given set of information into pricing process.

    The empirical findings would be useful to investors as it provides evidence of

    time varying nature of the stock market volatility. Investors aim at making moreprofitable and less risky investments. Therefore, the need to study and analyze

    stock market, among many other factors, before making investment decisions, but

    it is impossible to consistently make abnormal returns using trading strategy based

    on a given set of information when the markets are efficient.

    Thus this study of Equity Analysis and Share Price Movement will be an effective

    guide for an investor of stocks for the profitable investment return.

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    1.1 INTRODUCTION

    As the security market is on the process of an ongoing revolution with various

    marketable securities traded in the stock exchange. One of the many things people

    always want to know about the stock market is, How do I make money by

    investing in the stock Market ? There are many different approaches; two basic

    methods are classified as either fundamental analysis or technical analysis.

    Fundamental analysis refers to analyzing companies by their financial statements

    found in SEC Filings, business trends, general economic conditions, etc. Technical

    analysis studies price actions in markets through the use of charts and quantitative

    techniques to attempt to forecast price trends regardless of the companys financial

    prospects.

    Additionally, many choose to invest via the index method. In this method, one

    holds a weighted or unweighted portfolio consisting of the entire stock market or

    some segment of the stock market (such as the NIFTY or SENSEX). The principalaim of this strategy is to maximize diversification, minimize taxes from too

    frequent trading, and ride the general trend of the stock.

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    1.2 NEED OF THE STUDY

    The main need of the study is to describe the techniques and planning in

    todays investment environment. Apart from this the objective of this project

    study is to keenly understand issues examines all the essential analysis and

    teaches how to apply them successfully. It incorporates sections on

    fundamental analysis and technical analysis in the contexts of companies

    and markets. The purpose of this study is to give suitable guidance to retail

    investor. For this purpose two different industries with two companies in

    each industry are taken for analysis.For this study the data is collected using

    Balance Sheet, Income Statement, Ratio Analysis and Market Price of

    Shares of the Companies of past years.

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    1.3 OBJECTIVES OF THE STUDY

    Is to suggest the investor how to analysis the stock before investing into any

    companys stock.

    The objective of the study is to look into the scientific approach for selecting

    a stock where Fundamental Analysis and Technical Analysis are looked

    into.

    The study deals with analysis of performance of the company, share price

    fluctuations and profit of the company and comparing it with anothercompany from same sector.

    The purpose of the study is to locating a stock which gives good returns with

    minimum risk.

    The purpose of the study is to give awareness about analysis part of the

    stock before buying it.

    1.4 RESEARCH METHODOLOGY

    The study is mostly based on the secondary information from the records of Inter-

    connected Stock Exchange of India Limited (ISE). Necessary primary information

    has been collected from ISE. Part of the information is collected from the

    Textbooks, Journals, Newspapers, different Websites, and from companies site

    for an understanding of financial performance of the Cellular Companies.

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    1.5 LIMITATIONS OF THE STUDY

    All the limitations of Fundamental Analysis, Technical Analysis are applicable

    to the study.

    Due to time constraint, a comprehensive and meticulous study was not possible. As

    a result, there might be change of errors creeping in.

    Owing to the busy schedule of the executives and the staff in the company,

    exhaustive primary data couldnt be collected. Which might affect the result ofthe study,.

    Recommendations of the study are only personal options.

    Hence judgments may not be considered as ultimate and standard solution.

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    CHAPTER: 2

    2.1 LITERATURE REVIEW2.2 INDUSTRY PROFILE

    STOCK EXCHANGE

    2.3COMPANY PROFILE

    INTER-CONNECTED STOCK EXCHANGE OF

    INDIA LIMITED [ISE]

    2.1 LITERATURE REVIEW

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    Title : How Stocks Trade & How Price Movement take Place

    Author : Abhishek Parka

    Journal : Fundamental of stock market

    Keywords : Articles, BSE, EP knowledge center, Indian stock market, NSE

    Abstract :

    At the most fundamental level, supply and demand in the market determines stock prices.

    Price times the number of shares outstanding (market capitalization) is the value of a company,

    comparing just the share price of two companies is meaningless. Theoretically, earnings are what

    affect investors valuation of a company, but there are other indicators that investors use to

    predict stock price. Remember, it is investors sentiments, attitudes and expectations that

    ultimately affect stock prices. There are many theories that try to explain the way stock prices

    move the way they do. Unfortunately, there is no one theory that can explain everything.

    Title : Effect of Mergers on the Share Price Movement of the Acquiring

    Firms:

    A UK study

    Author : J.C Dodds*, J.P. Quek*

    Journal : journal of business finance & accountingAbstract :

    The profitability of mergers in Britain has not received the same attention as in the USA.

    This study examines mergers for the UK industrial sector as a whole for a period (1974-76)

    when merger activity was relatively slack. A standard methodology is used, but the size effects

    and the activeness of acquirers as well as the financing of the acquisition are examined. The

    conclusions contradict to some extent those found by other researchers in that the evidence was

    incenses-tent with the efficient markets hypothesis. The effect of taking firm size into account

    was found to reduce the standard deviations of the sample and it would appear that the cash

    mergers were viewed as less desirable by the market compared to equity exchange. For the

    separation of merger active Hon active firms it was found that there was less dispersion of the

    residuals for non-merger active firms.

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    Title : SEBI probing steel share price movements

    Author : Dinesh Narayanan

    Journal : The Hindu Business Line

    Abstract :

    The securities and exchange board of India has launched an investigation into the

    unusual price movement of shares of about half dozen steel companies, including that of steel

    authority of India ltd (SAIL), over the past few days. According to sources, the regulator has

    asked stock exchanges to find out whether any of these companies or its officials has violated

    listing agreements and whether there was concentrated trading in the shares.

    2.2 INDUSTRY PROFILE

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    STOCK EXCHANGE

    HISTORY:

    The only stock exchange operating in the 19 th century was Bombay Stock

    Exchange set up in 1875 and Ahmadabad set up in 1894. There were organized as

    voluntary non-profit making association of brokers to regulate and protect their

    interests. Before the control on securities trading became a central subject under

    the constitution in 1950, it was a state subject and the Bombay securities contracts

    (control) Act if 1925 used to regulate trading in securities. Under this Act, the

    Bombay Stock Exchange was recognized in 1927 and Ahmadabad in 1937.

    During the war boom, a number of stock exchanges were organized even in

    Bombay, Ahmadabad and other centers, but they were not recognized. Soon after

    it became a central subject, central legislation was proposed and a committee

    headed by