ECONOMIC ANALYSIS INDUSTRY ANALYSIS COMPANY ANALYSIS .

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

RATES .GDP INFLATION INT.

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 .

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

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

.  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 .

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