INTRODUCTION

India is a developing country. Nowadays many people are interested to invest in financial markets especially on equities to get high returns, and to save tax in honest way. Equities 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. In 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 "rader and hort "erm Investor. "he price of a security represents a consensus. It is the price at which one person agrees to buy and another agrees to sell. "he price at which an investor is willing to buy or sell depends primarily on his expectations. If he expects the security#s price to rise, he will buy it$ if the investor expects the price to fall, he will sell it. "hese simple statements are the cause of a major challenge in forecasting security prices, because they refer to human expectations. %s we all know firsthand, humans expectations are neither easily quantifiable nor predictable. If prices are based on investor expectations, then knowing what a security should sell for &i.e., fundamental analysis' becomes less important than knowing what other investors expect it to sell for. "hat#s not to say that knowing what a security should sell for isn#t important((it 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 co(exist in peace and complement each other. ince all the investors in the stock market want to make the maximum profits possible, they just cannot afford to ignore either fundamental or technical analysis.

Equity Analysis

NEED OF THE STUDY

"o start any business capital plays major role. +apital can be acquired in two ways by issuing shares or by taking debt from financial institutions or borrowing money from financial institutions. "he owners of the company have to pay regular interest and principal amount at the end. tock is ownership in a company, with each share of stock representing a tiny piece of ownership. "he more shares you own, the more of the company you own. "he more shares you own, the more dividends you earn when the company makes a profit. In the financial world, ownership is called Equity. %dvantages of selling stock,

Equity Analysis

OBJECTIVES OF THE STUDY

"he objective of this project is to deeply analy-e our Indian )anking Industry for investment purpose by monitoring the growth rate and performance on the basis of historical data.

"he main objectives of the .roject study are,

!etailed analysis of )anking industry which is gearing towards international standards

%naly-e the impact of qualitative factors on industry/s and company/s prospects

uggesting as to which company/s shares would be best for an investor to invest.

Equity Analysis

SCOPE OF THE STUDY

"he scope of the study is identified after and during the study is conducted. "he project is based on tools like fundamental analysis and ratio analysis. *urther, the study is based on information of last few years.

"he analysis is made by taking into consideration few companies "he scope of the study is limited for a period of few years. "he scope is limited to only the fundamental analysis of the chosen stocks.

Equity Analysis

METHODOLOGY
0esearch 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. "he methodology used in the study for the completion of the project and the fulfillment of the project objectives.

"he sample of the stocks for the purpose of collecting secondary data has been selected on the basis of 0andom ampling. "he stocks are chosen in an unbiased manner and each stock is chosen independent of the other stocks chosen. "he stocks are chosen from the )anking sector.

!%"% +122E+"I1N,
3 .rimary data for a project is the first hand information regarding the project being studied. In this regard the primary data for this project would be getting the necessary information from the company management by an interview, telephonic conversation or direct mail. 3 econdary data for a project would be the collection of information that has a bearing on the outcome of the project from secondary sources like news, press releases, internet etc. "he data collected for this project was from a secondary source. "he data was complied with the help of sources like News articles, Internet, +apitaline software. In Equity Analysis

this research, primary data could not be gathered as the company officials could not be contacted for a one to one interview or a telephonic interview. Rese !"# $%&e"ti'e, to do analysis I" companies for the purpose of investment in equity Ty(e $) !ese !"# *esi+,, conclusive D t "$--e"ti$, .et#$*, P!i. !y * t / unavailable Se"$,* !y * t / the company site and various financial news sites Rese !"# *esi+,/ it is based on historical performance data.

Equity Analysis

LIMIT0TIONS

"his study has been conducted purely to understand Equity analysis for investors. "he study is restricted to three companies based on *undamental analysis. "he study is limited to the companies having equities. !etailed study of the topic was not possible due to limited si-e of the project. "here was a constraint with regard to time allocation for the research study i.e. for a period of 45 days.

uggestions and conclusions are based on the limited data of few years.

Equity Analysis